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Agenda 2018 01-22AGENDA N E W H A N OV E R C OU N T Y B O A R D O F C OM M I S S I ON E R S A ssembly Ro om, N ew H ano ver Co unty H istoric Co urtho use 24 N orth T hird S treet, Ro om 301 Wilmington, N C WOODY WHITE, CHAIRMAN - SKIP WATKINS, VICE-CHAIRMAN JONATHAN BARFIELD, JR., COMMISSIONER - PATRICIA KUSEK, COMMISSIONER - ROB ZAPPLE, COMMISSIONER CHRIS COUDRIET, COUNTY MANAGER - WANDA COPLEY, COUNTY ATTORNEY - KYM CROWELL, CLERK TO THE BOARD J A N U A RY 22, 2018 9:00 A M ME E T I NG C A L L E D TO O R D E R (Chairman Woody W hite) I NV O C AT I O N (Reverend J ohn Mc L aughlin, St. J ude's Metropolitan Community Church) P L E D G E O F A L L E G I A NC E (Vice-Chairman Skip Watkins) APPRO VAL O F CO NSENT AG ENDA C O NS E NT AG E ND A I T E M S O F B US I NE S S 1.A pproval of Minutes 2.A ppointment of Commissioner K usek to the Cape F ear Community College B oard of Trustees 3.A doption of a Resolution to Approve the Donation of Various Scuba E quipment to P ender County 4.S econd Reading: Approval of S olid Waste F ranchise for B ig D Recycling, L L C 5.A pproval of Request from L eading I nto New Communities for the County to S erve as A pplicant Agency for a Grant with the Governor's Crime Commission 6.A pproval of November 2017 Tax Collection Reports 7.A pproval of 2017-2018 B oard of Education Budget Amendment #3 and B ond Project Budget Transfers E S T I MAT E D MI NUT E S RE G UL AR AG E ND A IT E M S O F B US INE S S 5 8.Consideration of a Resolution Recognizing A my Wright, 2017 C NN Hero of the Year 10 9.P resentation of S ervice Awards and I ntroduction of New Employees 10 10.Cape Fear Public Utility A uthority 2017 Annual Report 10 11.Update on the Choose Cape F ear Marketing Campaign 5 12.P ublic Hearing for the I ssuance of I nstallment Financing Not to Exceed $9,150,000 and Consideration of a Resolution A pproving a Contract and Deed of Trust with Respect Thereto and Delivery Thereof and Providing For Certain Other Related Matters to F und the Construction of Ogden Board of Commissioners - January 22, 2018 Fire Station and Pine Valley L ibrary 15 13.Consideration of A doption of 2018-2023 Strategic P lan 10 14.Consideration of A uthorization to Negotiate and S ign a Purchase A greement for Approximately 18 Acres Off Carolina Beach Road W ithin Municipal L imits 10 15.Committee A ppointments P UB L I C C O M M E NT S O N NO N-AG E ND A I T E M S (limit three minutes) E S T I MAT E D MI NUT E S AD D IT IO NAL AG E ND A I T E M S O F B US I NE S S 5 16.Consideration of a Resolution E xpressing Opposition to Off-S hore Drilling 17.A dditional I tems County Manager County Commissioners Clerk to the B oard County A ttorney 18.A D J O UR N Note: Minutes listed for each item are estimated, and if a preceding item takes less time, the B oard will move forward until the agenda is completed. M ission New Hanover County is committed to progressive public policy, superior 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 I ntegrity - Accountability - P rofessionalism - I nnovation - S tewardship Board of Commissioners - January 22, 2018 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 CONSENT DEPARTMENT: Governing Body PRESENTER(S): Kym Crowell, Clerk to the Board CONTACT(S): Kym Crowell SUBJECT: Approval of Mi nutes BRIEF SUMMARY: Approve minutes from the following meeting: Regular Meeting held on January 8, 2018 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 - January 22, 2018 ITEM: 1 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 CONSENT DEPARTMENT: Governing Body PRESENTER(S): Chairman White CONTACT(S): Chairman White SUBJECT: Appoi ntment of Commi ssi oner Kusek to the Cape Fear Communi ty Col l ege B oard of Trustees BRIEF SUMMARY: Appoint Commissioner Kusek as the Commissioner representative on the Cape Fear Community College Board of Trustees to replace Chairman White. STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Keep the public informed on important information RECOMMENDED MOTION AND REQUESTED ACTIONS: Approve appointment. COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 2 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 CONSENT DEPARTMENT: Sheriff PRESENTER(S): Doug Price, Captain CONTACT(S): Donna Seal, Business Officer SUBJECT: Adopti on of a Resol uti on to Approve the Donati on of Vari ous Scuba Equi pment to P ender County BRIEF SUMMARY: New Hanover County Sheriff's Office has vario us scuba equipment that will be replaced with new equipment. The e quipme nt still has some useful life, and the Sheriff's Office would like to donate the equipment to Pender County. The equipment has a Fair Market Value (FMV) of approximately $4,700. The authorization for this donation is granted under G.S.160A-280 which allows a city or county to donate to another go vernmental unit within the Unite d States any personal property, inc luding supplies, materials, and equipment, that the governing bo ard deems to be surplus, obsolete, o r unused pursuant to a resolution adopted after the posting of a public notice of such resolution at least five (5) days prior to its adoption. The resolution has been posted to the County's website pursuant to the statute. STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Support programs to improve educational performance RECOMMENDED MOTION AND REQUESTED ACTIONS: Adopt the resolution to approve the donation of the used scuba equipment to Pender County. ATTACHMENTS: Resolution Public Notice List COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Board of Commissioners - January 22, 2018 ITEM: 3 Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 3 NEW HANOVER COUNTY BOARD OF COMMISSIONERS RESOLUTION DONATION OF USED SCUBA EQUIPMENT TO PENDER COUNTY WHEREAS, GS 160A-280 allows a city or county to donate to another governmental unity within the United States, a sister city, or a nonprofit organization incorporated by: (i) the United States, (ii) the District of Columbia, or (iii) one of the United States, any personal property, including supplies, materials, and equipment, that the governing board deems to be surplus, obsolete, or unused; and WHEREAS, the County’s Sheriff’s Office has Scuba Equipment that is eight to ten years old and ready to be replaced with new equipment; and WHEREAS, the Sheriff’s Office would like to donate the equipment to Pender County; and WHEREAS, a public notice has been posted at least five days prior to the adoption of this resolution approving the donation as required by the statutes. NOW, THEREFORE, BE IT RESOLVED by the New Hanover County Board of Commissioners that the donation of used Scuba Equipment to Pender County is approved and County staff is directed to process any required documents to complete the transaction. ADOPTED this 22nd day of January, 2018. NEW HANOVER COUNTY Woody White, Chairman ATTEST: Kymberleigh G. Crowell, Clerk to the Board Board of Commissioners - January 22, 2018 ITEM: 3 - 1 - 1 PUBLIC NOTICE New Hanover County Board of County Commissioners will consider a resolution to donate used scuba equipment to Pender County. A public notice was published on Thursday, December 28, 2017 stating that this item would be considered at the meeting to be held on January 8, 2018; however, the correct meeting date is January 22, 2018 at 9:00 AM. This meeting will be held at the New Hanover County Historic Courthouse located at 24 N. Third St., Wilmington, NC 28401. Published: Tuesday, January 9, 2018 Board of Commissioners - January 22, 2018 ITEM: 3 - 2 - 1 USED SCUBA EQUIIPMENTJANUARY 8, 2018Item Size Brand Model SerialNumber Type Quantitiy Age New Price FMVAir Tank 80 ft3 P563228 Air Tank 1 8-10$250.00$75.00Air Tank 80 ft3 P554702 Air Tank 1 8-10$250.00$75.00Air Tank 80 ft3 P563196 Air Tank 1 8-10$250.00$75.00Air Tank 80 ft3 AS244776 Air Tank 1 8-10$250.00$75.00Air Tank 80 ft3 AS244992 Air Tank 1 8-10$250.00$75.00Air Tank 80 ft3 PP501905 Air Tank 1 8-10$250.00$75.00Air Tank 80 ft3 P563210 Air Tank 1 8-10$250.00$75.00Air Tank 80 ft3 AS227604 Air Tank 1 8-10$250.00$75.00Oceanic Islander XXL Oceanic Islander BCD 2 8-10$500.00$150.00Viking HDS 1000 01M Viking HDS1000 1001415 Dry Suit 1 8-10$2,000.00$400.00Viking HDS 1000 02 Viking HDS 1000 109270000091 Dry Suit 1 8-10$2,000.00$400.00Viking HDS 1000 03 Viking HDS 1000 1092800000093 Dry Suit 1 8-10$2,000.00$400.00Pinnacle D0268 XLS Pinnacle D0268 0509 Dry Suit 1 8-10$2,000.00$400.00Pinnacle D0263 XXLS Pinnacle D0263 0513 Dry Suit 1 8-10$2,000.00$400.00Pinnacle D0268 LS Pinnacle D0268 0502 Dry Suit 1 8-10$2,000.00$400.00Pinnacle D0268 XXLS Pinnacle D0268 0645 Dry Suit 1 8-10$2,000.00$400.00Interspiro Face Mask Interspiro Face Mask 3 8-10$650.00$150.00OTS Face Mask OTSFace Mask 5 8-10$800.00$200.00First StagesFirst Stage 20 8-10$200.00$100.00Pony Bottle 13 ft3 AF1459 Pony Bottle 1 3$150.00$50.00Pony Bottle 13 ft. AF1512 Pony Bottle 1 3$150.00$50.00Pony Bottle 13 ft3 AF1473 Pony Bottle 1 3$150.00$50.00Pony Bottle 13 ft3 AF1453 Pony Bottle 1 3$150.00$50.00Pinnacle Weight Belt Pinnacle Weight Belt 4 3$100.00$50.00DUI Weight Harness DUIWeight Belt 3 3$100.00$50.005lb Bag WeightsWeights 14 8-10$210.00$140.003lb Bag WeightsWeights 10 8-10$90.00$60.002lb Bag WeightsWeights 2 8-10$12.00$8.0010lb Bag WeightsWeights 10 8-10$300.00$200.00$4,708.00Board of Commissioners - January 22, 2018ITEM: 3- 3 - 1 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 CONSENT DEPARTMENT: County Attorney PRESENTER(S): Kemp Burpeau, Deputy County Attorney CONTACT(S): Kemp Burpeau SUBJECT: Second Readi ng: Approval of Sol i d Waste Franchi se for B i g D Recycl i ng, LLC BRIEF SUMMARY: New Hano ver County requires a County issued franc hise to collect so lid waste. P ursuant to Section 44.55, the applicant has provided information about his business organizatio n, equipment, personnel and fiscal responsibility. The Environmental M anagement Dire c to r and the Chief Financial Officer have no objections to the franchise request. The initial franchise period would run for seven years. The first reading was unanimously approved on January 8, 2018. STRATEGIC PLAN ALIGNMENT: RECOMMENDED MOTION AND REQUESTED ACTIONS: Recommend approval. ATTACHMENTS: Franchise Docs COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 4 Board of Commissioners - January 22, 2018 ITEM: 4 - 1 - 1 Board of Commissioners - January 22, 2018 ITEM: 4 - 1 - 2 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 CONSENT DEPARTMENT: Finance PRESENTER(S): Lisa Wurtzbacher, Chief Financial Officer CONTACT(S): Lisa Wurtzbacher and Frankie Roberts, LINC Executive Director SUBJECT: Approval of Request from Leadi ng Into New Communi ti es for the County to Serve as Appl i cant Agency for a G rant w i th the G overnor's Cri me Commi ssi on BRIEF SUMMARY: L IN C (Leading Into New Communities) requests that New Hano ver County serve as the applicant agency for a grant opportunity through the N C Governor ’s Crime Commission. The pre-application is due by J anuary 31, 2018. L IN C will be requesting $150,000 per year for a two-year period. The match required is 25% and will be provided by LINC. The purpo se of the grant is to add an inte nsive vo catio nal/educational training and work experience component to the L ITE (LIN C Initiative To Educate) Manhood P rogram. L ITE currently pro vides academic support, cognitive behavior training, and life skills to African American males, 1 6-2 4, who are justice involved, or at risk of justice involvement. The new grant will allow L ITE to add the Tradesmen P rogram which is a structured ten-week program. The program provides training in the areas of framing, H VAC, electrical, plumbing, and other skill trades. Students that complete the program will receive the P re- Apprenticeship Certificate Training (PACT). New Hanover County has served as the applicant agency for L IN C through the Governor ’s Crime Commission for more than a decade. STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Increase public safety and crime prevention RECOMMENDED MOTION AND REQUESTED ACTIONS: Request Board approval for submissio n of the grant application to the Governor's Crime Commission on behalf of LINC. ATTACHMENTS: LINC Letter of Request COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. Board of Commissioners - January 22, 2018 ITEM: 5 COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 5 Frankie Roberts, Executive Director BOARD MEMBERS Kim Cook, Ph.D., Chair, UNCW Sociology & Criminology Kristin Bolton, Ph.D., UNCW Social Work Evelyn Bryant, Attorney Andrew Waters Matthew Langley, Assisted Care, Inc. Michael Maume, Ph.D., UNCW Sociology & Criminology LeeAnne Quattrucci, Attorney at Law Ricky Reid, Owner, Urban Creations Alfred M. White, First Citizens Bank Tracy W. Wilkinson, Attorney at Law Joseph Williams, Owner, Joe’s Sweet Shop PO Box 401 · Wilmington, NC 28402 · Phone (910)332-1132 · Fax (910)332-1145· www.lincnc.org 501(c) 3 nonprofit organization All donations are tax deductible & greatly appreciated LINC’s ŵissioŶ is to educate aŶd ŵotiǀate youth to ŵake positiǀe life choices aŶd to eŵpoǁer ŵeŶ and women returning from incarceration to be productive members of our community. December 12, 2017 Ms. Avril Pinder Deputy County Manager 230 Government Center Drive Wilmington, NC 28403 Re: NC Governors Crime Commission Application, Juvenile Justice Category Dear Avril: On behalf of Leading Into New Communities, Inc., I would like to request that New Hanover County serve as the applicant for a NC Governors Crime Commission grant pre-application that is due on January 31, 2018. The amount to be requested is $150,000; there is a required 25% match that will be provided by LINC, Inc. The purpose of this grant is to add an intensive vocational/educational training and work experience component to the LITE (LINC Initiative To Educate) Manhood Program. Our program began as a pilot project in 2003; we believe it is a best practice in reducing criminal activity and increasing participants’ academic performance. LITE currently provides academic support, cognitive behavior training, and life skills to African American males, 16-24, who are Justice involved, or at risk of justice involvement. LITE utilizes a strengths-based, culture, and gender focused approach; the program has seen results such as, increased academic achievement, employment obtainment, attend higher education programs, and remain out of the Justice system. The Tradesmen Program adds a highly structured ten week program to LITE, beginning with basic job readiness skills, cognitive behavior training, and work ethics training; successful students are then rewarded by promotion into classroom education, and paid work experience. Program areas are framing, HVAC, electrical, plumbing, and other skill trade areas. Students that complete the program will receive The Pre-Apprenticeship Certificate Training (PACT). This curriculum is a home building industry-validated construction curriculum specifically designed to teach special populations including academically-challenged individuals. Students will also have the opportunity to be part of a crew renovating “Tiny Houses”, under the supervision of certified tradesmen. Participants will be paid during the construction of “Tiny Houses”. NC Governor’s Crime Commission Juvenile Justice funding will fall in the category of Juvenile Re- entry or Vocational Programming; expenditures will be primarily for program staff members. A request for WIOA funds, to Cape Fear Council of Government, is pending for student job expenses, certifications, and student salaries. Board of Commissioners - January 22, 2018 ITEM: 5 - 1 - 1 The target population will be forty students per year, a population at great risk of unemployment, substance abuse, gang activity, and other criminal activity. We appreciate your consideration of this request. Please advise us about the timeline to complete the County’s requirements, if we are granted an opportunity to be an applicant for this funding. You may call me at 910-262-1600 or Lynn Smithdeal at 910-622-0033. Best regards, Frankie Roberts, Executive Director Board of Commissioners - January 22, 2018 ITEM: 5 - 1 - 2 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 CONSENT DEPARTMENT: Tax PRESENTER(S): Trina Lewis, Collections Supervisor CONTACT(S): Trina Lewis SUBJECT: Approval of November 2017 Tax Col l ecti on Reports BRIEF SUMMARY: NCGS 105-350 requires the Tax Collector to submit a report showing the amount of taxes collected. Overall collections for November 2017 is ahead of collections from November 2016. The report for November 2017 in comparison to November 2016 is as follows: New Hanover County November 2017 November 2016 Real Property 48.94%47.77% Personal Property 14.70%15.69% Motor Vehicle 100.00%100.00% Overall Collec tion Rate 48.19%46.79% Total Collec ted YTD $78,114,503.63 $76,687,217.13 New Hanover County Debt Service November 2017 November 2016 Real Property 48.89%47.69% Personal Property 14.75%15.65% Motor Vehicle 100.00%100.00% Overall Collec tion Rate 48.12%45.85% Total Collec ted YTD $9,981,214.09 $9,202,060.21 Grand Total Collected YTD $88,095,717.72 $85,889,277.34 New Hanover County Fire District November 2017 November 2016 Real Property 56.65%55.03% Personal Property 10.77%13.36% Motor Vehicle 100.00%100.00% Overall Collec tion Rate 54.30%52.93% Total Collec ted YTD $5,177,854.00 $4,161,550.77 STRATEGIC PLAN ALIGNMENT: Board of Commissioners - January 22, 2018 ITEM: 6 Superior Public Health, Safety and Education • Keep the public informed on important information RECOMMENDED MOTION AND REQUESTED ACTIONS: Approve the reports. ATTACHMENTS: New Hanover County Monthly Collection Report for November 2017 New Hanover County Debt Service Monthly Collection Report for November 2017 New Hanover County Fire District Monthly Collection Report for November 2017 COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 6 Total 2017 Collections YTD Total Prior Year Collections YTD 418,500.23$ Grand Total All Collections YTD 78,533,003.86$ * Detailed information for Refunds can be found in the Tax Office Chairman Clerk to the Board Date *Refunds 157,406.61$ 5,445.77$ 162,852.38$ Collections to Date 376,534.49$ 28,031.88$ 3,617.84$ 408,184.21$ Scroll 1,633,147.62$ 3,627,236.75$ 635,008.55$ 5,895,392.92$ Abatements (9,262.80)$ (53,917.29)$ (122.43)$ (63,302.52)$ Real Estate Personal Property Motor Vehicles Combined NEW HANOVER COUNTY Outstanding Balance 1,267,889.88$ 3,560,315.83$ 631,870.69$ 5,460,076.40$ YTD Interest Collected 40,237.81$ 4,751.63$ 1,413.09$ 46,402.53$ Write-off (109.69)$ (288.43)$ (76.47)$ (474.59)$ Adjustments 522.70$ 35.59$ 558.29$ Total Levy 1,624,407.52$ 3,573,355.05$ 634,886.12$ 5,832,648.69$ *Refunds 20,126.54$ 15,281.09$ 678.88$ 36,086.51$ YTD Interest Collected 10,036.35$ -$ 31,361.22$ 41,397.57$ 78,114,503.63$ Prior Years 2007-2016 Collection Percentage 48.94 14.70 100.00 48.19 Write-off (174.70)$ (714.84)$ (889.54)$ Outstanding Balance 74,977,991.02$ 8,961,799.41$ -$ 83,939,790.43$ Total Taxes Charged 146,836,488.55$ 10,506,742.28$ 4,670,555.20$ 162,013,786.03$ Collections to Date 72,015,729.44$ 1,549,673.80$ 4,670,555.20$ 78,235,958.44$ Abatements (304,403.13)$ (173,196.05)$ (477,599.18)$ Adjustments 8,006.51$ 24,593.69$ 32,600.20$ New Hanover County Monthly Collection Report for November 2017 Current Year 2017 Real Estate Personal Property Motor Vehicles Combined Scroll/Billed 147,132,885.17$ 10,655,344.64$ 4,670,555.20$ 162,458,785.01$ Board of Commissioners - January 22, 2018 ITEM: 6 - 1 - 1 Total 2017 Collections YTD 9,981,214.09$ Total Prior Year Collections YTD 38,532.16$ Grand Total All Collections YTD 10,019,746.25$ * Detailed information for Refunds can be found in the Tax Office Chairman Clerk to the Board Date Combined New Hanover County Debt Service Monthly Collection Report for November 2017 Current Year 2017 Real Estate Personal Property Motor Vehicles Abatements (38,976.54)$ (22,196.72)$ -$ (61,173.26)$ Scroll/Billed 18,831,892.72$ 1,369,295.73$ 589,082.37$ 20,790,270.82$ Total Taxes Charged 18,793,941.34$ 1,350,248.04$ 589,082.37$ 20,733,271.75$ Adjustments 1,025.16$ 3,149.03$ -$ 4,174.19$ Collections to Date 9,189,228.30$ 199,068.86$ 589,082.37$ 9,977,379.53$ Write-off (26.78)$ (92.77)$ -$ (119.55)$ *Refunds 829.91$ 26.18$ 856.09$ YTD Interest Collected 96.35$ -$ 3,738.21$ 3,834.56$ Outstanding Balance 9,605,516.17$ 1,151,112.59$ -$ 10,756,628.76$ Collection Percentage 48.89 14.75 100.00 48.12 Scroll 95,984.27$ 87,128.34$ -$ 183,112.61$ Prior Years 2007-2016 Real Estate Personal Property Motor Vehicles Combined Adjustments 65.10$ 4.43$ -$ 69.53$ Abatements (229.08)$ (2,331.16)$ -$ (2,560.24)$ Collections to Date 34,262.59$ 1,880.65$ -$ 36,143.24$ Total Levy 95,820.29$ 84,801.61$ -$ 180,621.90$ Write-off (23.26)$ (41.77)$ -$ (65.03)$ *Refunds -$ 305.89$ -$ 305.89$ NEW HANOVER COUNTY YTD Interest Collected 2,219.56$ 169.36$ -$ 2,388.92$ Outstanding Balance 61,534.44$ 83,185.08$ -$ 144,719.52$ Board of Commissioners - January 22, 2018 ITEM: 6 - 2 - 1 Total 2017 Collections YTD Total Prior Year Collections YTD 23,216.28$ Grand Total All Collections YTD 5,201,070.28$ * Detailed information for Refunds can be found in the Tax Office Chairman Clerk to the Board Date *Refunds -$ 313.72$ NEW HANOVER COUNTY 86.44$ 2,476.22$ Write-off (11.07)$ (23.36)$ (5.52)$ (39.95)$ Outstanding Balance 67,834.15$ 183,404.25$ 35,144.37$ 286,382.77$ YTD Interest Collected 2,249.27$ 140.51$ 313.72$ 10.77 100.00 54.30 35,319.79$ 306,849.06$ Collections to Date 20,239.40$ 330.76$ 169.90$ 20,740.06$ (17.46)$ (4,177.39)$ Adjustments Scroll 89,336.26$ 186,352.94$ Total Levy 88,084.62$ 183,444.65$ Abatements -$ *Refunds 185.69$ 31.36$ 217.05$ -$ YTD Interest Collected 1,342.74$ -$ 1,864.08$ 3,206.82$ 5,177,854.00$ Prior Years 2007-2016 Real Estate Personal Property Motor Vehicles Combined 35,337.25$ 311,026.45$ (1,251.64)$ (2,908.29)$ Collection Percentage 56.65 Outstanding Balance 3,657,722.05$ 696,842.06$ -$ 4,354,564.11$ Write-off (20.46)$ (66.13)$ (86.59)$ New Hanover County Fire District Monthly Collection Report for November 2017 Current Year 2017 Real Estate Personal Property Motor Vehicles Adjustments 6,502.99$ 3,642.52$ Abatements (15,874.93)$ (24,787.29)$ Combined Scroll/Billed 8,447,437.80$ 802,054.99$ 310,104.75$ 9,559,597.54$ 10,145.51$ (40,662.22)$ Collections to Date 4,780,509.04$ 84,033.39$ 310,104.75$ 5,174,647.18$ Total Taxes Charged 8,438,065.86$ 780,910.22$ 310,104.75$ 9,529,080.83$ Board of Commissioners - January 22, 2018 ITEM: 6 - 3 - 1 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 CONSENT DEPARTMENT: Strategy & Budget PRESENTER(S): Mary Hazel Small, CFO NHCS CONTACT(S): Beth Schrader, Chief Strategy & Budget Officer SUBJECT: Approval o f 2017-2018 B oard of Educati o n B udget Amendment #3 and B ond P roject B udget Transfers BRIEF SUMMARY: 1) On December 5, 2017, the Board of Education approved Budget Amendment #3, which: a) Records $1,795 insurance settle ment and $75 donation for M ath Foundation Workshop revenues, transfers funding for veteran teacher bonus and miscellaneous school and program transfers; and b) Budge ts $27 0,3 05 in state funds fo r 3 replacement buse s leased with state funding, corrects a $300 prior carryo ver budget amendment, and transfers $109,162 from capital outlay contingency line item to fund $94,000 STEM Innovative Classroom pilot at Freeman and $15,162 for NC DEQ required site assessments. 2) On January 9, 2018, the Board of Education approved the following Bond Project Budget Transfers: a) Transfers savings from the following bond projects: $576,678.26 Northeast Elementary School 796,841.23 NHHS Renovations 12,729.14 Pine Valley Roof Replacement 29,646.25 Noble Ambt / Carpet Replacement 1,153.63 Veterans Park HVAC Improvements 293,841.09 Bradley Creek HVAC Improvements 300,812.67 Dorothy B Johnson HVAC Improvements 9,678.66 Carolina Beach Roof Replacement $2,021,380.93 b) Budgets those savings to purchase three (3 ) modular classroo m units for upcoming middle school renovations and transfers the balance of funds to program contingency: $342,000.00 for (1) eight-classroom modular unit for Roland-Grise Middle School 780,000.00 for (1) four-classroom and (1) six-classroom modular unit for Myrtle Grove Middle School 52,000.00 Trask Middle School Renovations 847,380.93 Program Contingency $2,021,380.93 STRATEGIC PLAN ALIGNMENT: Board of Commissioners - January 22, 2018 ITEM: 7 Superior Public Health, Safety and Education • Support programs to improve educational performance RECOMMENDED MOTION AND REQUESTED ACTIONS: Approve budget amendment and bond project budget transfers. ATTACHMENTS: FY18 BOE Budget Amendment #3 BOE Bond Budget Amendment COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 7 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 1 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 2 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 3 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 4 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 5 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 6 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 7 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 8 Board of Commissioners - January 22, 2018ITEM: 7- 1 - 9 Board of Commissioners - January 22, 2018ITEM: 7- 2 - 1 Board of Commissioners - January 22, 2018ITEM: 7- 2 - 2 Board of Commissioners - January 22, 2018ITEM: 7- 2 - 3 Board of Commissioners - January 22, 2018ITEM: 7- 2 - 4 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: County Manager PRESENTER(S): Chairman White CONTACT(S): Ruth Smith, Chief Communications Officer and Kym Crowell, Clerk to the Board SUBJECT: Consi derati on of a Resol uti on Recogni zi ng Amy Wri ght, 2017 CNN Hero of the Year BRIEF SUMMARY: A resolution has been prepared to recognize Amy Wright, 2 01 7 C N N Hero of the Year. Amy and her husband, Ben, operate Bitty & Beau's Coffee and provide employment to 40 people with intellectual and developmental disabilities (IDD). A second location is expected to open in Charleston, SC in 2018. Their business builds acceptance of persons with ID D and provides those living with ID D employment, a sense of belonging and value, and personal pride. They have created a wonderful model for other communities to emulate, enriching the lives of their employees, patrons, and community. STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Keep the public informed on important information RECOMMENDED MOTION AND REQUESTED ACTIONS: Adopt the resolution. ATTACHMENTS: Resolution COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 8 NEW HANOVER COUNTY BOARD OF COMMISSIONERS RESOLUTION RECOGNIZING AMY WRIGHT 2017 CNN HERO OF THE YEAR WHEREAS, the New Hanover County Board of Commissioners recognizes Amy Wright, founder of Bitty and Beau’s Coffee, in honor of her significant advocacy and achievements to support people with intellectual and developmental disabilities (IDD) in New Hanover County and across the nation; and WHEREAS, Amy Wright and her husband, Ben, are dedicated to making the world a better place for their children and others living with IDD; and WHEREAS, the original Beau’s Coffee opened January 2016 in Wilmington, NC in a 500 square foot space creating a path for people with IDD to become more accepted, included and valued in every community; and WHEREAS, Beau’s Coffee was renamed in July 2016, at Beau’s request for his little sister’s name to also be put up in lights, to Bitty & Beau’s Coffee and relocated to a 5,000 square foot building that serves as both a local coffee house and national headquarters; and WHEREAS, Bitty and Beau’s Coffee currently employs 40 people with IDD and two managers with degrees in special education; and WHEREAS, a second location is expected to open in Charleston, SC in 2018; and WHEREAS, all profits from the coffee shop go to Amy Wright’s nonprofit, ABLE to WORK USA; and WHEREAS, on December 17, 2017 Amy Wright was named the 2017 CNN Hero of the Year for her efforts to advocate for disabled people. NOW, THEREFORE, BE IT RESOLVED, that the New Hanover County Board of Commissioners hereby recognizes and celebrates the significant work and contributions of Amy Wright and calls upon all citizens to give honor and appreciation for her dedicated service to New Hanover County and communities across the nation. ADOPTED this the 22nd day of January, 2018. NEW HANOVER COUNTY __________________________________ Woody White, Chairman ATTEST: ___________________________________ Kymberleigh G. Crowell, Clerk to the Board Board of Commissioners - January 22, 2018 ITEM: 8 - 1 - 1 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: Human Resources PRESENTER(S): Commissioners and Chris Coudriet, County Manager CONTACT(S): Bo Dean, Human Resources Analyst SUBJECT: P resentati on of Servi ce Awards and Introducti on of New Empl oyees BRIEF SUMMARY: Service awards will be presented to retirees and employees. New employees will be introduced. STRATEGIC PLAN ALIGNMENT: Effective County Management • Hire, develop and retain talented people • Recognize and reward contribution RECOMMENDED MOTION AND REQUESTED ACTIONS: Present service awards and meet new employees. COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Present service awards and meet new employees. COMMISSIONERS' ACTIONS: Presented service awards and met new employees. Board of Commissioners - January 22, 2018 ITEM: 9 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: County Manager PRESENTER(S): Jim Flechtner, Cape Fear Public Utility Authority Executive Director CONTACT(S): Chris Coudriet, County Manager SUBJECT: Cape Fear P ubl i c Uti l i ty Authori ty 2017 Annual Report BRIEF SUMMARY: Jim Flechtner will provide the Cape Fear Public Utility Authority 2017 Annual Report. STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Keep the public informed on important information RECOMMENDED MOTION AND REQUESTED ACTIONS: Hear report. COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Hear report. COMMISSIONERS' ACTIONS: Heard report. Board of Commissioners - January 22, 2018 ITEM: 10 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: Strategy & Budget PRESENTER(S): Natalie English, CEO Wilmington Chamber of Commerce CONTACT(S): Beth Schrader, Chief Strategy & Budget Officer SUBJECT: Update on the Choose Cape F ear Marketi ng Campai gn BRIEF SUMMARY: Natalie English, CE O of the Wilmington Chamber of Commerce, will pro vide the Bo ard with an update on the impact and reach of the Choo se Cape Fear marketing campaign to date, and will share info rmation about efforts to operationalize the campaign locally. STRATEGIC PLAN ALIGNMENT: Intelligent Growth and Economic Development • Attract and retain new and expanding businesses RECOMMENDED MOTION AND REQUESTED ACTIONS: Hear presentation. COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Hear presentation. COMMISSIONERS' ACTIONS: Heard presentation. Board of Commissioners - January 22, 2018 ITEM: 11 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: Finance PRESENTER(S): Lisa Wurtzbacher, Chief Financial Officer CONTACT(S): Lisa Wurtzbacher and Martha Wayne, Deputy Chief Financial Officer SUBJECT: P ubl i c Heari ng for the Issuance of Instal l ment F i nanci ng Not to Exceed $9,150,000 and Consi derati on of a Resol uti on Approvi ng a Contract and Deed of Trust wi th Respect Thereto and Del i very Thereof and P rovi di ng F or Certai n Other Rel ated M atters to F und the C onstruc ti on of Ogden F i re Stati on and P i ne Val l ey Li brary BRIEF SUMMARY: At its J anuary 8, 2018 meeting, the Board of County Commissioners ("Board") approved a reso lutio n which directed staff to negotiate an installment financing contract in an amount not to exceed $9,150,000, seek approval from the Local Government Commissio n to issue the installment financ ing co ntrac t, and called a public hearing for the Board's January 22, 2018 meeting. Staff received one bid for the installment financing contract. B B&T proposed a term of 15 years at a 3.56% interest rate. The financing will be secured by a security interest in the Ogden Fire Statio n located at 7375 Market Street. These terms are in line with staff expectations. Average annual debt service payments will be $7 78 ,29 9. County staff has anticipated the debt service payments for this contract and the debt has been included in debt capacity calculation. Because the financ ing will be secured by a first lien security interest in the Ogden Fire Statio n, the Board of Commissioners must hold a public hearing before it awards the bid to B B&T and adopts the related resolution. STRATEGIC PLAN ALIGNMENT: Effective County Management • Deliver value for taxpayer money RECOMMENDED MOTION AND REQUESTED ACTIONS: Conduct the public hearing and ado pt a Reso lutio n Of The Bo ard Of Commissioners Of The County Of New Hanover, North Carolina, Approving A Contract And A De e d Of Trust With Respect Thereto And Delivery Thereof And Providing For Certain Other Related Matters. ATTACHMENTS: Resolution Draft Financing Contract COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Board of Commissioners - January 22, 2018 ITEM: 12 Conduct public hearing. Recommend approval. COMMISSIONERS' ACTIONS: Conducted public hearing. Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 12 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA, APPROVING A CONTRACT AND A DEED OF TRUST WITH RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS WHEREAS, the County of New Hanover, North Carolina (the “County”) is a validly existing political subdivision of the State of North Carolina, existing as such under and by virtue of the Constitution, statutes and laws of the State of North Carolina (the “State”); WHEREAS, the County has the power, pursuant to the General Statutes of North Carolina to (1) purchase real and personal property, (2) enter into installment financing contracts in order to finance the purchase of real and personal property used, or to be used, for public purposes, and (3) finance the construction of fixtures or improvements on real property by contracts that create in the fixtures or improvements and in the real property on which such fixtures or improvements are located a security interest to secure repayment of moneys advanced or made available for such construction; WHEREAS, the Board of Commissioners of the County of New Hanover, North Carolina (the “Board of Commissioners”), has previously determined that it was in the best interest of the County to (a) enter into an Installment Financing Contract (the “Contract”) with Branch Banking and Trust Company (the “Bank”) in order to obtain funds sufficient to acquire, construct, and equip the Ogden Fire Station (the “Ogden Fire Station”) and construct and equip the Pine Valley Library (“Pine Valley Library”) in the County (collectively, the “Project”) and (b) enter into a deed of trust and security agreement (the “Deed of Trust”) related to the County’s fee simple interest in the real property on which the Ogden Fire Station will be located (the “Site”); WHEREAS, the Board conducted a public hearing with respect to the Project at this meeting to receive public comments on the proposed financing, the Contracts and the Deeds of Trust and the County has filed an application with the LGC for approval of the LGC with respect to the County entering into the Contracts; WHEREAS, there has been presented to the Board the forms of the Contract and the Deed of Trust (collectively, the “Instruments”), copies of which are attached hereto, which the County proposes to approve, enter into and deliver, as applicable, to effectuate the proposed financing at a 3.56% rate of interest and for a maximum principal amount of $9,150,000, all as further specified in the Instruments; WHEREAS, it appears that each of the Instruments is in appropriate form and is an appropriate instrument for the purposes intended; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA, AS FOLLOWS: Section 1. Ratification of Prior Actions. All actions of the County, the County Manager, the Chief Financial Officer of the County and the Clerk to the Board and their respective designees in effectuating the proposed financing are hereby approved, ratified and authorized pursuant to and in accordance with the transactions contemplated by the Instruments. Section 2. Approval, Authorization and Execution of Instruments. The County hereby approves the financing of the Project in accordance with the terms of the Contract, which will be a valid, legal and binding obligation of the County in accordance with its terms. The County hereby approves the amount advanced by the Bank to the County pursuant to the Contract in an aggregate principal amount not to exceed $9,150,000, such amount to be repaid by the County to the Bank as provided in the Board of Commissioners - January 22, 2018 ITEM: 12- 1 - 1 2 Contract. The form, terms and content of the Instruments are in all respects authorized, approved and confirmed, and the Chairman, the County Manager, the Chief Financial Officer of the County and the Clerk to the Board or their respective designees are authorized, empowered and directed to execute and deliver the Instruments for and on behalf of the County, including necessary counterparts, in substantially the forms attached hereto, but with such changes, modifications, additions or deletions therein as shall to them seem necessary, desirable or appropriate, their execution thereof to constitute conclusive evidence of their approval of any and all such changes, modifications, additions or deletions, and that from and after the execution and delivery of the Instruments, the Chairman, the County Manager, the Chief Financial Officer of the County and the Clerk to the Board or their respective designees are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Instruments as executed. Section 3. Repealer. All motions, orders, resolutions, ordinances and parts thereof in conflict herewith are hereby repealed. Section 4. Severability. If any section, phrase or provision of this Resolution is for any reason declared to be invalid, such declaration does not affect the validity of the remainder of the sections, phrases or provisions of this Resolution. Section 5. Effective Date. This Resolution is effective on the date of its adoption. On motion of ___________________________, seconded by __________________________, the foregoing resolution entitled: “RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA, APPROVING A CONTRACT AND A DEED OF TRUST WITH RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS” was duly adopted by the following vote: AYES: NAYS: STATE OF NORTH CAROLINA ) ) SS: COUNTY OF NEW HANOVER ) I, KYMBERLEIGH G. CROWELL, 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 a resolution entitled: “RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA, APPROVING A CONTRACT AND A DEED OF TRUST WITH RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS” was adopted by the Board of Commissioners of the County of New Hanover, North Carolina, at a meeting held on the 22nd day of January, 2018. Board of Commissioners - January 22, 2018 ITEM: 12- 1 - 2 3 WITNESS my hand and the corporate seal of the County of New Hanover, North Carolina, this the 22nd day of January, 2018. (SEAL) Kymberleigh G. Crowell Clerk to the Board of Commissioners County of New Hanover, North Carolina Board of Commissioners - January 22, 2018 ITEM: 12- 1 - 3 1 Prepared by and return after recording to: Branch Banking and Trust Company Attention: Governmental Finance 5130 Parkway Plaza Boulevard Charlotte, NC 28217 FINANCING AGREEMENT AND DEED OF TRUST STATE OF NORTH CAROLINA ) COLLATERAL IS OR ) INCLUDES FIXTURES COUNTY OF NEW HANOVER ) THIS FINANCING AGREEMENT AND DEED OF TRUST (this "Agreement") is dated as of February 9, 2018, and is granted by the COUNTY OF NEW HANOVER, NORTH CAROLINA, a political subdivision of the State of North Carolina (the "Borrower"), to BB&T Collateral Service Corporation, a North Carolina business corporation (the "Deed of Trust Trustee"), for the benefit of BRANCH BANKING AND TRUST COMPANY ("BB&T"). R E C I T A L S: The Borrower has the power, pursuant to Section 160A-20 of the North Carolina General Statutes, to enter into installment contracts to finance the purchase or improvement of real or personal property, and to secure its obligations under such contracts by security interests in all or a portion of the property purchased or improved. This Agreement provides for BB&T to advance $9,073,400 to the Borrower to enable the Borrower to acquire and construct the Ogden Fire Station and the Pine Valley Branch Library (collectively, the “Projects”) and to repay a portion of the loan entered into by the Borrower to finance the acquisition of the site of the Ogden Fire Station, and provides for securing the Borrower's obligations under this Agreement by creating certain security interests in favor of BB&T. This Agreement secures current advances of $9,073,400. The current scheduled date for final repayment is on or about February 9, 2033. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 1 2 NOW, THEREFORE, (1) in consideration of the execution and delivery of this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged; (2) to secure the Borrower's performance of all its covenants under this Agreement, including the repayment of amounts advanced and to be advanced, together with interest on all such advances as provided in this Agreement or any amendments hereto, and all charges and expenses of collection (including court costs and reasonable attorneys' fees and expenses); and (3) to charge the Mortgaged Property (as defined below) with such payment and performance, the Borrower hereby sells, grants and conveys to the Deed of Trust Trustee, its heirs and assigns forever, in trust, with power of sale, the following (collectively, the "Mortgaged Property"): (a) (i) the site of the Ogden Fire Station, as more particularly described in Exhibit A, and (ii) all real property hereafter acquired by the Borrower in exchange for, or in consideration of the exchange of, or with the proceeds from any disposition of, all or any part of any property described in this subparagraph, and in all cases together with all easements, rights, liberties, rights-of-way and appurtenances belonging to any such property (collectively, the "Site"); (b) the improvements described in Exhibit B and all other improvements and fixtures now or hereafter attached or appurtenant to or used in or on those improvements or the Site, including (i) all renewals and replacements thereof and all additions thereto, (ii) all articles in substitution thereof, (iii) all building materials for construction or repair of such improvements upon their delivery to the Site, and (iv) all proceeds of all the foregoing in whatever form resulting from the loss or disposition of the foregoing, including all proceeds of and unearned premiums for any insurance policies covering the Site and such improvements, proceeds of title insurance and payments related to the exercise of condemnation or eminent domain authority, and all judgments or settlements in lieu of any of the foregoing (the “Facilities”); and (c) the moneys on deposit from time to time in the Project Fund, as provided in Sections 2.02. TO HAVE AND TO HOLD the Mortgaged Property with all privileges and appurtenances thereunto belonging thereto, to the Deed of Trust Trustee, its heirs and assigns forever, upon the trusts, terms and conditions and for the purposes set out below, in fee simple in trust; SUBJECT, HOWEVER, to the encumbrances described in Exhibit C (the "Existing Encumbrances"); Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 2 3 BUT THIS CONVEYANCE IS MADE UPON THIS SPECIAL TRUST: if the Required Payments (as defined below) are paid in full in accordance with this Agreement, and the Borrower shall comply with all of the terms, covenants and conditions of this Agreement, this conveyance shall be null and void and shall be canceled of record at the Borrower's request and cost, and title shall revest as provided by law. BUT IF, HOWEVER, THERE SHALL OCCUR AN EVENT OF DEFAULT UNDER THIS AGREEMENT, then BB&T shall have the remedies provided for in this Agreement, including directing the Deed of Trust Trustee to sell the Mortgaged Property under power of sale. THE BORROWER COVENANTS AND AGREES with the Deed of Trust Trustee and BB&T (and their respective heirs, successors and assigns), in consideration of the foregoing, as follows: ARTICLE I DEFINITIONS; INTERPRETATION Unless the context clearly requires otherwise, capitalized terms used in this Agreement and not otherwise defined shall have the following meanings: “Act” means Section 160A-20 of the General Statues of North Carolina, as amended. "Additional Payments" means any of BB&T’s reasonable and customary fees and expenses related to the transactions contemplated by this Agreement, any of BB&T's expenses (including attorneys' fees) in prosecuting or defending any action or proceeding in connection with this Agreement, any required license or permit fees, state and local sales and use or ownership taxes or property taxes which BB&T is required to pay as a result of this Agreement, inspection and re- inspection fees, and any other amounts payable by the Borrower (or paid by BB&T on the Borrower’s behalf) as a result of its covenants under this Agreement (together with interest that may accrue on any of the above if the Borrower shall fail to pay the same, as set forth in this Agreement). "Amount Advanced" has the meaning assigned in Section 2.02. “Bond Counsel Opinion” means a written opinion (in form and substance acceptable to BB&T) of an attorney or firm of attorneys acceptable to BB&T. “Borrower” means County of New Hanover, North Carolina. “Borrower Representative” means the Borrower’s finance officer, investment officer or such other person or persons at the time designated, by a written certificate furnished to BB&T and signed on the Borrower's behalf by the presiding officer of the Borrower's Governing Board, to act on the Borrower's behalf for any purpose (or any specified purpose) under this Agreement. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 3 4 "Budget Officer" means the Borrower’s officer from time to time charged with preparing the Borrower's draft budget as initially submitted to the Governing Board for its consideration. "Business Day" means any day on which banks in the State are not by law authorized or required to remain closed. "Closing Date" means the date on which this Agreement is first executed and delivered by the parties. "Code" means the Internal Revenue Code of 1986, as amended, including regulations, rulings and revenue procedures promulgated thereunder or under the Internal Revenue Code of 1954, as amended, as applicable to the Borrower's obligations under this Agreement and all proposed (including temporary) regulations which, if adopted in the form proposed, would apply to such obligations. Reference to any specific Code provision shall be deemed to include any successor provisions thereto. "Construction Agreements" means any contracts with contractors related to the construction of the Facilities. “Enforcement Limitation” means the provisions of the Act that provides that no deficiency judgment may be rendered against the Borrower in any action for breach of a contractual obligation incurred under the Act and that the taxing power of the Borrower is not and may not be pledged directly or indirectly to secure any moneys due under this Agreement. "Event of Default" means one or more events of default as defined in Section 8.01. "Event of Nonappropriation" means any failure by the Governing Board to adopt, by the first day of any Fiscal Year, a budget for the Borrower that includes an appropriation for Required Payments, or the Governing Board’s amendment of the annual budget to remove an appropriation for Required Payments, in each case as contemplated by Section 3.05. “Existing Encumbrances” means the encumbrances described in Exhibit C. "Fiscal Year" means the Borrower's fiscal year beginning [July 1], or such other fiscal year as the Borrower may later lawfully establish. "Governing Board" means the Borrower's governing board as from time to time constituted. "Installment Payments" means the payments payable by the Borrower pursuant to Section 3.01. "LGC" means the North Carolina Local Government Commission. "Mortgaged Property" means the Mortgaged Property, as defined above. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 4 5 "Net Proceeds," when used with respect to any amounts derived from claims made on account of insurance coverages required under this Agreement, any condemnation award arising out of the condemnation of all or any portion of the Mortgaged Property, payments on any bonds required by Section 5.03, any amounts recovered from any contractor on an action for default or breach, as described in Section 5.03, or any amounts received in lieu or in settlement of any of the foregoing, means the amount remaining after deducting from the gross proceeds thereof all expenses (including attorneys' fees and costs) incurred in the collection of such proceeds, and after reimbursement to the Borrower or BB&T for amount previously expended to remedy the event giving rise to such payment or proceeds. "Payment Dates" means the dates indicated in Exhibit D. "Permitted Encumbrances" means, as of any particular time, (a) the Existing Encumbrances, (b) liens for taxes and assessments not then delinquent, (c) this Agreement, and (d) easements, rights-of-way and other such minor defects or restrictions as normally exist with respect to property of the same general character as the Mortgaged Property which will not impair the Borrower's intended use of the Mortgaged Property. "Plans and Specifications" means all plans and specifications for the Facilities prepared by architects, engineers and other consultants. "Prime Rate" means the interest rate so denominated and set by Branch Banking & Trust Company (whether or not such bank, or any affiliate thereof, is at any time the beneficiary under this Agreement) as its "Prime Rate," as in effect from time to time. "Project Costs" means all costs of the design, planning, constructing, acquiring, installing and equipping of the Projects as determined in accordance with generally accepted accounting principles and that will not adversely affect the exclusion from gross income for federal income tax purposes of the designated interest component of Installment Payments payable by the Borrower under this Agreement, including (a) sums required to reimburse the Borrower or its agents for advances made for any such costs, (b) interest during the construction process and for up to six months thereafter, and (c) all costs related to the financing of the Projects through this Agreement and all related transactions "Project Fund" has the meaning assigned in Section 2.02. “Project Fund Agreement” has the meaning assigned in Section 2.02. “Projects” has the meaning assigned in the Recitals hereto. "Required Payments" means Installment Payments and Additional Payments. “Section 160A-20” means Section 160A-20 of the North Carolina General Statutes, as amended, or any successor provision of law. “State” means the State of North Carolina. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 5 6 All references in this Agreement to designated "Sections" and other subdivisions are to the designated sections and other subdivisions of this Agreement. The words "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision unless the context indicates otherwise. Words importing the singular number shall include the plural number and vice versa. ARTICLE II SECURITY PROVIDED BY THIS AGREEMENT; ADVANCE 2.01. Security for Payment and Performance. This Agreement secures the Borrower's payment, as and when the same shall become due and payable, of all Required Payments and the Borrower's timely compliance with all terms, covenants and conditions of this Agreement. 2.02. Advance. BB&T advances $9,073,400 (the "Amount Advanced") to the Borrower by making a deposit of $9,068,500 (the Amount Advanced, less a fee of $4,900 to be paid directly by BB&T to its legal counsel) on the Closing Date to a Project Fund (the "Project Fund") as provided in a Project Fund Agreement of even date herewith (the “Project Fund Agreement”) between the Borrower and BB&T, and the Borrower hereby accepts the Amount Advanced from BB&T. All amounts on deposit from time to time in each Project Fund, including the Amount Advanced and all investment earnings, shall be used only for Project Costs until the Project Fund is terminated as provided under the Project Fund Agreement. 2.03. Borrower’s Limited Obligation. (a) THE PARTIES INTEND THAT THIS TRANSACTION COMPLY WITH SECTION 160A-20. NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED OR INTERPRETED AS CREATING A PLEDGE OF THE BORROWER'S FAITH AND CREDIT WITHIN THE MEANING OF ANY CONSTITUTIONAL DEBT LIMITATION. NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED OR INTERPRETED AS A DELEGATION OF GOVERNMENTAL POWERS OR AS AN IMPROPER DONATION OR A LENDING OF THE BORROWER'S CREDIT WITHIN THE MEANING OF THE STATE CONSTITUTION. NO DEFICIENCY JUDGMENT MAY BE RENDERED AGAINST THE BORROWER IN VIOLATION OF SECTION 160A-20. No provision of this Agreement shall be construed to pledge or to create a lien on any class or source of the Borrower's moneys (other than the funds held under the Project Fund Agreement or this Agreement), nor shall any provision of this Agreement restrict the future issuance of any of the Borrower's bonds or obligations payable from any class or source of the Borrower's moneys (except to the extent this Agreement restricts the incurrence of additional obligations secured by the Mortgaged Property). In the event of any conflict between this Section or Section 160A-20, and any other provision of this Agreement, this Section and Section 160A-20 take precedence over any other provision of this Agreement. (b) Nothing in this Section is intended to impair or prohibit foreclosure on this Agreement if the Required Payments are not paid when due or otherwise upon the occurrence of an Event of Default under this Agreement or the Project Fund Agreement, and in any such event BB&T may request the Deed of Trust Trustee to foreclose on the Mortgaged Property as provided in this Agreement. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 6 7 2.04. Borrower's Continuing Obligations. The Borrower shall remain liable for full performance of all its covenants under this Agreement (subject to the limitations described in Section 2.03), including payment of all Required Payments, notwithstanding the occurrence of any event or circumstances whatsoever, including any of the following: (a) BB&T's waiver of any right granted or remedy available to it; (b) The forbearance or extension of time for payment or performance of any obligation under this Agreement, whether granted to the Borrower, a subsequent owner of the Facilities or any other person; (c) The release of all or part of the Mortgaged Property or the release of any party who assumes all or any part of such performance; (d) Any act or omission by BB&T (but this provision does not relieve BB&T of any of its obligations under this Agreement or the Project Fund Agreement); (e) The sale of all or any part of the Mortgaged Property; or (f) Another party's assumption of the Borrower's obligations under this Agreement. 2.05. Construction Mortgage. The security interest evidenced hereby is a "construction mortgage" within the meaning of Section 25-9-334 of the North Carolina General Statutes, as amended, or any successor provision. ARTICLE III BORROWER'S PAYMENT OBLIGATION AND RELATED MATTERS 3.01. Installment Payments. The Borrower shall repay the Amount Advanced by making Installment Payments to BB&T in lawful money of the United States at the times and in the amounts set forth in Exhibit D, except as otherwise provided in this Agreement. As indicated in Exhibit D, the Installment Payments reflect the repayment of the Amount Advanced and include designated interest components. 3.02. Additional Payments. The Borrower shall pay all Additional Payments on a timely basis directly to the person or entity to which such Additional Payments are owed in lawful money of the United States. 3.03. Prepayment. The Borrower may prepay the outstanding principal component of the Amount Advanced, at its option on any regularly scheduled Payment Date, in whole but not in part, by paying (a) all Additional Payments then due and payable, (b) all interest accrued and unpaid to the prepayment date, and (c) 101% of the outstanding principal amount. 3.04. Late Payments. If the Borrower fails to pay any Installment Payment when due, the Borrower shall pay additional interest on the principal component of the late Installment Payment Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 7 8 (as permitted by law) at an annual rate equal to the Prime Rate from the original due date. 3.05. Appropriations. (a) The Budget Officer shall include in the initial proposal for each of the Borrower's annual budgets the amount of all Installment Payments and estimated Additional Payments coming due during the Fiscal Year to which such budget applies. Notwithstanding that the Budget Officer includes such an appropriation for Required Payments in a proposed budget, the Governing Board may determine not to include such an appropriation in the Borrower's final budget for such Fiscal Year. (b) The Budget Officer shall deliver notification to BB&T, within 15 days after the beginning of each Fiscal Year, if an amount equal to the Installment Payments and estimated Additional Payments coming due during the next Fiscal Year has not been appropriated by the Borrower in such budget for such purposes. If such amount has not been so appropriated, the Budget Officer shall send a copy of such notification to the LGC, to the attention of its Secretary, at 3200 Atlantic Avenue, Raleigh NC 27604. (c) The actions required of the Borrower and its officers pursuant to this Section shall be deemed to be and shall be construed to be in fulfillment of ministerial duties, and it shall be the duty of each and every Borrower official to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the Borrower to carry out and perform the actions required pursuant to this Section and the remainder of this Agreement to be carried out and performed by the Borrower. (d) The Borrower reasonably believes that it can obtain funds sufficient to pay all Required Payments when due. 3.06. No Abatement. There shall be no abatement or reduction of the Required Payments for any reason, including, but not limited to, any defense, recoupment, setoff, counterclaim, or any claim (real or imaginary) arising out of or related to the Site or the Projects, except as expressly provided in this Agreement. The Borrower assumes and shall bear the entire risk of completion, loss and damage to the Site or the Projects from any cause whatsoever. The Installment Payments shall be made in all events unless the Borrower's obligation to make Installment Payments is terminated as otherwise provided in this Agreement. 3.07. Interest Rate and Payment Adjustment. (a) “Rate Adjustment Event” means any action by the Internal Revenue Service (including the delivery of a deficiency notice) or any other federal court or administrative body determining that the interest component of Installment Payments, or any portion thereof, is includable in any beneficiary's gross income for federal income tax purposes, in any case as a result of any misrepresentation by the Borrower or as a result of any action the Borrower takes or fails to take. (b) Upon any Rate Adjustment Event, (i) the unpaid principal portion of the Amount Advanced shall continue to be payable on dates and in amounts as set forth in Exhibit D, but (ii) the interest components of the Installment Payments shall be recalculated, at an interest rate equal to an annualized interest rate equal to the Prime Rate plus 2% (200 basis points), to the date (retroactively, if need be) determined pursuant to the Rate Adjustment Event to be the date interest became includable in any beneficiary's gross income for federal income tax purposes. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 8 9 (c) The Borrower shall pay interest at such adjusted rate (subject to credit for interest previously paid) to each affected beneficiary, notwithstanding the fact that any particular beneficiary may not be a beneficiary under this Agreement on the date of a Rate Adjustment Event. The Borrower shall additionally pay to all affected beneficiaries any interest, penalties or other charges assessed against or payable by such beneficiary and attributable to a Rate Adjustment Event notwithstanding the prior repayment of the entire Amount Advanced or any transfer to another beneficiary. ARTICLE IV BORROWER'S COVENANTS, REPRESENTATIONS AND WARRANTIES 4.01. Warranties of Title. The Borrower covenants with the Deed of Trust Trustee and BB&T that the Borrower is seized of and has the right to convey the Mortgaged Property in fee simple, that the Mortgaged Property is free and clear of all liens and encumbrances other than the Permitted Encumbrances, that title to the Mortgaged Property is marketable, and that the Borrower will forever warrant and defend title to the Mortgaged Property against the claims of all persons. 4.02. Indemnification. To the extent permitted by law, the Borrower shall indemnify, protect and save the Deed of Trust Trustee, BB&T and its officers and directors, and the LGC’s members and employees, harmless from all liability, obligations, losses, claims, damages, actions, suits, proceedings, costs and expenses, including attorneys' fees, arising out of, connected with, or resulting directly or indirectly from the Mortgaged Property or the transactions contemplated by this Agreement, including without limitation the possession, condition, construction or use of the Projects. The indemnification arising under this Section shall survive the Agreement's termination. 4.03. Covenant as to Tax Exemption. (a) The Borrower shall not take or permit, or omit to take or cause to be taken, any action that would cause its obligations under this Agreement to be "arbitrage bonds" or "private activity bonds" within the meaning of the Code, or otherwise adversely affect the exclusion from gross income for federal income tax purposes of the designated interest component of Installment Payments to which such components would otherwise be entitled and, if it should take or permit, or omit to take or cause to be taken, any such action, the Borrower shall take or cause to be taken all lawful actions within its power necessary to rescind or correct such actions or omissions promptly upon having knowledge thereof. (b) In particular, the Borrower covenants that it shall not permit the Amount Advanced, plus the investment earnings thereon (the "Proceeds"), to be used in any manner that would result in 5% or more of the Installment Payments being directly or indirectly secured by an interest in property, or derived from payments in respect of property or borrowed money, being in either case used in a trade or business carried on by any person other than a governmental unit, as provided in Code Section 141(b), or result in 5% or more of the Proceeds being used directly or indirectly to make or finance loans to any persons other than a governmental unit, as provided in Code Section 141(c); provided, however, that if the Borrower receives a Bond Counsel Opinion that compliance with any such covenant is not required to prevent the interest components of Installment Payments from being includable in the beneficiary's gross income for federal income tax purposes under existing law, the Borrower need not comply with such covenant. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 9 10 (c) Unless the Borrower qualifies for one or more exceptions to the arbitrage rebate requirement with respect to this financing, the Borrower shall provide for the rebate to the United States of (i) at least 90% of the required rebate amount (A) on or before 60 days after the date that is five years from the Closing Date, and (B) at least once during each five years thereafter while the obligations hereunder remain outstanding, and (ii) the entire required rebate amount on or before 60 days after the date of final payment of the Installment Payments. Payments shall be made in the manner prescribed by the Internal Revenue Service. The Borrower shall cause the required rebate amount to be recomputed as of each fifth anniversary of the Closing Date, and again as of the date of final payment of the Installment Payments. The Borrower shall provide BB&T with a copy of the results of such computation within 20 days after the end of each computation period or final payment of the Installment Payments. Each computation shall be prepared or approved, at the Borrower's expense, by a person with experience in matters of accounting for federal income tax purposes, a bona fide arbitrage rebate calculating and reporting service, or nationally-recognized bond counsel, in any case reasonably acceptable to BB&T. The Borrower shall engage such rebate consultant to perform the necessary calculations not less than 60 days prior to the date of the required payment. (d) The Borrower acknowledges that its personnel must be familiar with the arbitrage rebate rules, because the tax-exempt status of the interest on the Installment Payments depends upon continuing compliance with such rules. The Borrower therefore covenants to take all reasonable action to assure that Borrower personnel responsible for the investment of and accounting for financing proceeds comply with such rules. 4.04. Validity of Organization and Acts. The Borrower is validly organized and existing under State law, has full power to enter into this Agreement and has duly authorized and has obtained all required approvals and all other necessary acts required prior to the execution and delivery of this Agreement. This Agreement is a valid, legal and binding obligation of the Borrower. 4.05. Maintenance of Existence. The Borrower shall maintain its existence, shall continue to be a local governmental unit of the State, validly organized and existing under State law, and shall not consolidate with or merge into another local governmental unit of the State, or permit one or more other local governmental units of the State to consolidate with or merge into it, unless the local governmental unit thereby resulting assumes the Borrower's obligations under this Agreement. 4.06. Acquisition of Permits and Approvals. All permits, consents, approvals or authorizations of all governmental entities and regulatory bodies, and all filings and notices required on the Borrower's part to have been obtained or completed as of today in connection with the authorization, execution and delivery of this Agreement, the consummation of the transactions contemplated hereby and the acquisition and construction of the Projects have been obtained and are in full force and effect, and there is no reason why any future required permits, consents, approvals, authorizations or orders cannot be obtained as needed. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 10 11 4.07. No Breach of Law or Contract. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement, (a) to the best of the Borrower's knowledge, constitutes a violation of any provision of law governing the Borrower or (b) results in a breach of the terms, conditions or provisions of any contract, agreement or instrument or order, rule or regulation to which the Borrower is a party or by which the Borrower is bound. 4.08. No Litigation. There is no litigation or any governmental administrative proceeding to which the Borrower (or any official thereof in an official capacity) is a party that is pending or, to the best of the Borrower's knowledge after reasonable investigation, threatened with respect to (a) the Borrower's organization or existence, (b) its authority to execute and deliver this Agreement or to comply with the terms of this Agreement, (c) the validity or enforceability of this Agreement or the transactions contemplated hereby, (d) the title to office of any Governing Board member or any other Borrower officer, (e) any authority or proceedings relating to the Borrower's execution or delivery of this Agreement, or (f) the undertaking of the transactions contemplated by this Agreement. 4.09. No Current Default or Violation. (a) The Borrower is not in violation of any existing law, rule or regulation applicable to it, (b) the Borrower is not in default under any contract, other agreement, order, judgment, decree or other instrument or restriction of any kind to which the Borrower is a party or by which it is bound or to which any of its assets are subject, including this Agreement, and (c) no event or condition has happened or existed, or is happening or existing, under the provisions of any such instrument, including this Agreement, which constitutes or which, with notice or lapse of time, or both, would constitute an event of default hereunder or thereunder. 4.10. No Misrepresentation. No representation, covenant or warranty by the Borrower in this Agreement is false or misleading in any material respect. 4.11. Environmental Warranties and Indemnification. (a) The Borrower warrants and represents to BB&T as follows: (i) The Borrower has no knowledge of, and after reasonable inquiry no reason to believe (A) that any industrial use has been made of the Mortgaged Property, (B) that the Mortgaged Property has been used for the storage, treatment or disposal of chemicals or any wastes or materials that are classified by federal, State or local laws as hazardous or toxic substances, or (C) that any manufacturing, landfilling or chemical production has occurred on the Mortgaged Property. (ii) The Mortgaged Property is in compliance with all federal, State and local environmental laws and regulations, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Public Law No. 96-510, 94 Stat. 2767, 42 USC 9601 et seq., and the Superfund Amendments and Reauthorization Act of 1986 ("SARA"), Public Law No. 99-499, 100 Stat. 1613. (iii) The Borrower has fully disclosed to BB&T in writing the existence, extent and nature of any hazardous materials, substances, wastes or other environmentally regulated substances (including without limitation, any materials containing asbestos), which the Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 11 12 Borrower is legally authorized and empowered to maintain on, in or under the Mortgaged Property or use in connection therewith, and the Borrower has obtained and will maintain all licenses, permits and approvals required with respect thereto, and is in compliance with all of the terms, conditions and requirements of such licenses, permits and approvals. (iv) The Borrower will promptly notify BB&T of any change in the nature or extent of any hazardous materials, substances or wastes maintained on, in or under the Mortgaged Property or used in connection therewith, and will promptly send to BB&T copies of any citations, orders, notices or other material governmental or other communication received with respect to any other hazardous materials, substances, wastes or other environmentally regulated substances affecting the Mortgaged Property. (b) To the extent permitted by law, the Borrower shall indemnify and hold BB&T and the Deed of Trust Trustee harmless from and against (i) any and all damages, penalties, fines, claims, liens, suits, liabilities, costs (including clean-up costs), judgments and expenses (including attorneys', consultants' or experts' fees and expenses) of every kind and nature suffered by or asserted against the Deed of Trust Trustee or BB&T as a direct or indirect result of any warranty or representation made by the Borrower in subsection (a) above being false or untrue in any material respect, or (ii) any requirement under any law, regulation or ordinance, local, State or federal, which requires the elimination or removal of any hazardous materials, substances, wastes or other environmentally regulated substances by the Deed of Trust Trustee, BB&T or the Borrower or any transferee or assignee of the Deed of Trust Trustee, BB&T or the Borrower. (c) The Borrower's obligations under this Section shall continue in full effect notwithstanding full payment of the Required Payments or foreclosure under this Agreement or delivery of a deed in lieu of foreclosure. 4.12. Further Instruments. Upon BB&T's request, the Borrower shall execute, acknowledge and deliver such further instruments reasonably necessary or desired by BB&T to carry out more effectively the purposes of this Agreement or any other document related to the transactions contemplated hereby, and to subject to the liens and security interests hereof and thereof all or any part of the Mortgaged Property intended to be given or conveyed hereunder or thereunder, whether now given or conveyed or acquired and conveyed subsequent to the date of this Agreement. 4.13. BB&T's Advances for Performance of Borrower's Obligations. If the Borrower fails to perform any of its obligations under this Agreement, BB&T is hereby authorized, but not obligated, to perform such obligation or cause it to be performed. All expenditures incurred by BB&T (including any advancement of funds for payment of taxes, insurance premiums or other costs of maintaining the Mortgaged Property, and any associated legal or other expenses), together with interest thereon at the Prime Rate, shall be secured as Additional Payments under this Agreement. The Borrower promises to pay all such amounts to BB&T immediately upon demand. 4.14. Projects Will Be Used and Useful. The acquisition and construction of the Projects is necessary and expedient for the Borrower, and will perform essential functions of the Borrower appropriate for units of local government. The Borrower has an immediate need for, and expects to make immediate use of, all of the Projects, and does not expect such need or use to diminish in any Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 12 13 material respect during the term of the Agreement. The Projects will not be used in any private business or put to any private business use. 4.15. Financial Information. (a) The Borrower shall send to BB&T a copy of the Borrower’s audited financial statements for each Fiscal Year within 30 days of the Borrower’s acceptance of such statements, but in any event within 270 days of the completion of such Fiscal Year. (b) The Borrower shall furnish BB&T, at such reasonable times as BB&T shall request, all other financial information (including, without limitation, the Borrower's annual budget as submitted or approved) as BB&T may reasonably request. The Borrower shall permit BB&T or its agents and representatives to inspect the Borrower's books and records and make extracts therefrom. 4.16. Taxes and Other Governmental Charges. The Borrower shall pay, as Additional Payments, the full amount of all taxes, assessments and other governmental charges lawfully made by any governmental body during the term of this Agreement. With respect to special assessments or other governmental charges which may be lawfully paid in installments over a period of years, the Borrower shall be obligated to provide for Additional Payments only for such installments as are required to be paid during the Agreement term. The Borrower shall not allow any liens for taxes, assessments or governmental charges with respect to the Mortgaged Property or any portion thereof to become delinquent (including, without limitation, any taxes levied upon the Mortgaged Property or any portion thereof which, if not paid, will become a charge on any interest in the Mortgaged Property, including BB&T's interest, or the rentals and revenues derived therefrom or hereunder). 4.17. Borrower's Insurance. (a) From and after substantial completion of each principal portion of the Facilities, the Borrower shall, at its own expense, acquire, carry and maintain broad- form extended coverage property damage insurance with respect to all improvements in or on the Site or otherwise related to the Facilities in an amount equal to the estimated replacement cost of such improvements. Such property damage insurance shall include standard mortgagee coverage in favor of BB&T. The Borrower shall provide evidence of such coverage to BB&T promptly upon such substantial completion. Any Net Proceeds of the insurance required by this subsection (a) shall be payable as provided in Section 6.09. (b) The Borrower shall, at its own expense, acquire, carry and maintain comprehensive general liability insurance in an amount not less than $2,000,000 for personal injury or death and $2,000,000 for property damage. (c) If the property (building) secured by this Agreement has been determined to be in a “Special Flood Hazard” area, shown on a map published by the Federal Emergency Management Agency (FEMA), the Borrower, at its own expense, must maintain an adequate policy for flood insurance for the life of the loan in compliance with the Flood Disaster Protection Act of 1973 (Federal law). If at any time during the term of the Agreement, such portion of the Mortgaged Property is classified by FEMA as being located in a special flood hazard area, flood insurance will be mandatory. Should BB&T become aware of such an event, federal law requires BB&T to notify the Borrower of the reclassification. If, within forty-five Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 13 14 (45) days of receipt of notification from BB&T that any portion of the Mortgaged Property has been reclassified by the FEMA as being located in a special flood hazard area, the Borrower has not provided sufficient evidence of flood insurance, BB&T is mandated under federal law to purchase flood insurance on behalf of the Borrower, and any amounts so expended shall, subject to Section 3.05 and the Enforcement Limitation, immediately become debts of the Borrower, shall bear interest at the rate specified in the Agreement, and payment thereof shall be secured by the Agreement. (d) The Borrower shall also maintain workers' compensation insurance issued by a responsible carrier authorized under State law to insure the Borrower against liability for compensation under applicable State law as in effect from time to time. (e) All insurance shall be maintained with generally recognized responsible insurers and may carry reasonable deductible or risk-retention amounts. (f) No Borrower agent or employee shall have the power to adjust or settle any property damage loss greater than $50,000 with respect to the Mortgaged Property, whether or not covered by insurance, without BB&T's prior written consent. (g) BB&T shall not be responsible for the sufficiency or adequacy of any required insurance and shall be fully protected in accepting payment on account of such insurance or any adjustment, compromise or settlement of any loss agreed to by BB&T. (h) Upon request, the Borrower shall deliver to BB&T annually a certificate stating the property coverage required by this Agreement is in effect, and stating the carrier, policy number and coverage amount. ARTICLE V TERMS OF CONSTRUCTION 5.01. Construction; Changes. (a) The Borrower shall comply with the provisions of Article 8 of Chapter 143 of the North Carolina General Statutes and enter into the Construction Agreements. The Borrower shall cause the construction to be carried on continuously in accordance with the Plans and Specifications and all applicable State and local laws and regulations. The Borrower shall cause the Facilities to be constructed on the Site and shall insure (i) that the Facilities do not encroach upon nor overhang any easement or right-of-way and (ii) that the Facilities, when erected, will be wholly within any applicable building restriction lines, however established, and will not violate applicable use or other restrictions contained in prior conveyances or applicable protective covenants or restrictions. The Borrower shall cause all utility lines, septic systems and streets serving the Site to be completed in accordance with health department standards and other applicable regulations of any governmental agency having jurisdiction. (b) The Borrower may approve changes to the Plans and Specifications and the Construction Agreements in its discretion except that the Borrower may not, without BB&T's consent, approve any changes which (i) result in the Facilities' use for purposes substantially different from those initially proposed or (ii) which increase total estimated Project Costs beyond Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 14 15 amounts previously identified and designated for such purpose. 5.02. Construction within Funds Available. The Borrower represents that, based upon its examination of the Site and of the Plans and Specifications, estimated construction and equipment costs provided by licensed architects and engineers and the Facilities' anticipated configuration, the Facilities can be constructed, acquired and equipped for a total price within the total amount of funds to be available therefore in the Project Fund, income anticipated to be derived from the investment thereof and other funds previously identified and designated for such purposes. If the total amount available for such purposes in the Project Fund shall be insufficient to pay the entire cost of constructing, acquiring and equipping the Facilities, the Borrower promises to pay any such excess costs, with no resulting reduction or offset in the amounts otherwise payable by the Borrower under this Agreement. 5.03. Contractors' Performance and Payment Bonds. The Borrower shall require each contractor entering into a Construction Agreement to furnish a performance bond and a separate labor and material payment bond as required by Article 3, Chapter 44A of the North Carolina General Statutes. Upon any material default by a contractor under any Construction Agreement, or upon any material breach of warranty with respect to any materials, workmanship or performance, the Borrower shall promptly proceed, either separately or in conjunction with others, to pursue diligently its remedies against such contractor or against the surety of any bond securing the performance of such Construction Agreement. 5.04. Contractors' General Public Liability and Property Damage Insurance. The Borrower shall require each contractor entering into a Construction Agreement to procure and maintain standard form (a) comprehensive general public liability and property damage insurance, at such contractor's own cost and expense, during the duration of such contractor's construction contract, in the amount of at least $2,000,000, and (b) comprehensive automobile liability insurance on owned, hired and non-owned vehicles for not less than $2,000,000. Such insurance shall provide protection from all claims for bodily injury, including death, property damage and contractual liability, products/completed operations, broad form property damage and XCU (explosive, collapse and underground damage), where applicable. 5.05. Contractors' Builder's Risk Completed Value Insurance. The Borrower shall require each contractor entering into a Construction Agreement to purchase and maintain property insurance (builder's risk) upon all construction, acquisition, installation and equipping of the Facilities (excluding contractor's tools and equipment) at the site thereof at the full insurable value thereof. The contractor shall purchase and maintain similar property insurance for portions of the work stored off the Site or in transit when such portions of the work are to be included in an application for payment. The contractor shall be responsible for the payment of any deductible amounts associated with this insurance. 5.06. Contractors' Workers' Compensation Insurance. The Borrower shall require each contractor entering into a Construction Agreement to procure and maintain workers' compensation insurance during the term of such Construction Agreement, covering his or her employees working thereunder. A certificate of insurance evidencing such coverage, in form Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 15 16 acceptable to BB&T, shall be provided to the Borrower with respect to each contractor entering into a Construction Agreement. Each Construction Agreement shall also provide that each subcontractor of any contractor who is a party to such Construction Agreement shall be required to furnish similar workers' compensation insurance. 5.07. Disclaimer of Warranties. The Borrower agrees that BB&T has not designed the Projects, that BB&T has not supplied any plans or specifications with respect thereto and that BB&T (a) is not a manufacturer of, nor a dealer in, any of the component parts of the Projects or similar facilities, (b) has not made any recommendation, given any advice nor taken any other action with respect to (i) the choice of any supplier, vendor or designer of, or any other contractor with respect to, the Projects or any component part thereof or any property or rights relating thereto, or (ii) any action taken or to be taken with respect to the Projects or any component part thereof or any property or rights relating thereto at any stage of the acquisition, construction and equipping thereof, (c) has not at any time had physical possession of the Projects or any component part thereof or made any inspection thereof or of any property or rights relating thereto, and (d) has not made any warranty or other representation, express or implied, that the Projects or any component part thereof or any property or rights relating thereto (i) will not result in or cause injury or damage to persons or property, (ii) has been or will be properly designed, or will accomplish the results which the Borrower intends therefore, or (iii) is safe in any manner or respect. BB&T MAKES NO EXPRESS OR IMPLIED WARRANTY OR REPRESENTATION OF ANY KIND WHATSOEVER WITH RESPECT TO THE PROJECTS OR ANY COMPONENT PART THEREOF, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OR REPRESENTATION WITH RESPECT TO THE MERCHANTABILITY OR THE FITNESS OR SUITABILITY THEREOF FOR ANY PURPOSE, and further including the design or condition thereof; the safety, quality or capacity thereof; compliance thereof with the requirements of any law, rule, specification or contract pertaining thereto; any latent defect; the Projects' ability to perform any function; that the Amount Advanced will be sufficient to pay all costs of the acquisition, construction and equipping of the Projects; or any other characteristic of the Projects; it being agreed that the Borrower is to bear all risks relating to the Projects, the completion thereof and the transactions contemplated hereby, and the Borrower hereby waives the benefits of any and all implied warranties and representations of BB&T. The provisions of this Section shall survive the Agreement's termination. 5.08. Right of Entry and Inspection. BB&T and its representatives and agents shall have the right to enter upon the Site and inspect the Facilities from time to time during construction and after the completion of construction, and the Borrower shall cause any vendor, contractor or sub-contractor to cooperate with BB&T and its representatives and agents during such inspections. No right of inspection or approval granted in this Section shall be deemed to impose upon BB&T any duty or obligation whatsoever to undertake any inspection or to make any approval. No inspection made or approval given by BB&T shall be deemed to impose upon BB&T any duty or obligation whatsoever to identify or correct any defects in the Facilities or to notify any person with respect thereto, and no liability shall be imposed upon BB&T, and no warranties (either express or implied) are made by BB&T as to the quality or fitness of any improvement, any such inspection and approval being made solely for BB&T's benefit. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 16 17 ARTICLE VI CARE AND USE OF FACILITIES 6.01. Compliance with Requirements. (a) The Borrower shall cause the Facilities to be designed and constructed in compliance with all applicable legal requirements, including subdivision, building and zoning regulations. The Borrower shall not initiate or acquiesce in a change in the Site's zoning classification, except with respect to any change that may be appropriate to conform the actual zoning to that appropriate for the use of the Facilities contemplated as of the Closing Date. (b) The Borrower shall observe and comply promptly with all current and future requirements relating to the Mortgaged Property's use or condition imposed by (i) any judicial, governmental or regulatory body having jurisdiction over the Facilities or any portion thereof or (ii) any insurance company writing a policy covering the Facilities or any portion thereof, whether or not any such requirement shall necessitate structural changes or improvements or interfere with the use or enjoyment of the Mortgaged Property. (c) The Borrower shall obtain and maintain in effect all licenses and permits required for the Facilities' operation. (d) The Borrower shall in no event use the Mortgaged Property or any part thereof, nor allow the same to be used, for any unlawful purpose, or suffer any act to be done or any condition to exist with respect to the Mortgaged Property or any part thereof, nor any article to be brought thereon, which may be dangerous, unless safeguarded as required by law, or which may, in law, constitute a nuisance, public or private, or which may make void or voidable any insurance then in force with respect thereto. 6.02. Use and Operation. The Borrower shall use and operate the Projects and related facilities for their intended public purposes, and for no other purpose unless required by law. The Borrower shall be solely responsible for the Projects' operation, and shall not contract with any other person or entity for the Projects' operation. 6.03. Maintenance and Repairs; Additions. (a) The Borrower shall keep the Mortgaged Property in good order and repair (reasonable wear and tear excepted) and in good operating condition, shall not commit or permit any waste or any other thing to occur whereby the value or usefulness of the Mortgaged Property might be impaired, and shall make from time to time all necessary or appropriate repairs, replacements and renewals. (b) The Borrower may, also at its own expense, make from time to time any additions, modifications or improvements to the Mortgaged Property that it may deem desirable for its governmental or proprietary purposes and that do not materially impair the effective use, nor materially decrease the value or substantially alter the intended use, of the Mortgaged Property. The Borrower shall do, or cause to be done, all such things as may be required by law in order fully to protect the security of and all BB&T's rights under this Agreement. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 17 18 (c) Any and all additions to or replacements of the Facilities and all parts thereof shall constitute accessions to the Facilities and shall be subject to all the terms and conditions of this Agreement and included in the "Facilities" for the purposes of this Agreement. (d) Notwithstanding the provisions of subsection (c) above, however, the Borrower may, from time to time in its sole discretion and at its own expense, install machinery, equipment and other tangible property in or on the Facilities. All such property shall remain the Borrower's sole property in which BB&T shall have no interest; provided, however, that any such property which becomes permanently affixed to the Facilities shall be subject to the lien and security interest arising under this Agreement if BB&T shall reasonably determine that the Facilities would be damaged or impaired by the removal of such machinery, equipment or other tangible property. 6.04. Utilities. The Borrower shall pay all charges for utility services furnished to or used on or in connection with the Site and the Facilities. 6.05. Risk of Loss. The Borrower shall bear all risk of loss to and condemnation of the Site and the Facilities. 6.06. Condemnation. (a) The Borrower shall immediately notify BB&T if any governmental authority shall institute, or shall notify the Borrower of any intent to institute, any action or proceeding for the taking of, or damages to, all or any part of the Mortgaged Property or any interest therein under the power of eminent domain, or if there shall be any damage to the Mortgaged Property due to governmental action, but not resulting in a taking of any portion of the Mortgaged Property. The Borrower shall file and prosecute its claims for any such awards or payments in good faith and with due diligence and cause the same to be collected and paid over to BB&T, and to the extent permitted by law hereby irrevocably authorizes and empowers BB&T or the Deed of Trust Trustee, in the Borrower's name or otherwise, to collect and receipt for any such award or payment and to file and prosecute such claims. If the Borrower receives any Net Proceeds arising from any such action, the Borrower shall apply such Net Proceeds as provided in Section 6.09. (b) If any of the real or personal property acquired or improved by the Borrower (in whole or in part) using any portion of the Amount Advanced consists of or is located on any real property acquired by the Borrower through the exercise of the power of eminent domain, or through the threat of the exercise of the power of eminent domain, then during the term of this Agreement the Borrower may not transfer any interest in such real property to any entity other than a local governmental unit without BB&T’s prior express written consent. 6.07. Title. Title to the Site and the Facilities and any and all additions, repairs, replacements or modifications thereto shall at all times be in the Borrower, subject to the lien of this Agreement. Upon the Borrower's payment in full of all Required Payments, BB&T, at the Borrower's expense and request, shall cancel this Agreement. 6.08. No Encumbrance, Mortgage or Pledge of Site or Facilities. (a) The Borrower shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, pledge, lien (including mechanics' and materialmen's liens), charge, encumbrance or other claim in the nature of a lien on or with respect to the Mortgaged Property, except Permitted Encumbrances. The Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 18 19 Borrower shall promptly, at its own expense, take such action as may be duly necessary to discharge any such mortgage, pledge, lien, charge, encumbrance or claim not excepted above which it shall have created, incurred or suffered to exist. (b) The Borrower shall reimburse BB&T for any expense incurred by BB&T to discharge or remove any such mortgage, pledge, lien, security interest, encumbrance or claim, with interest thereon at the Prime Rate. 6.09. Damage and Destruction; Use of Net Proceeds. (a) The Borrower shall promptly notify BB&T if (i) the Mortgaged Property or any portion thereof is stolen or is destroyed or damaged by fire or other casualty, (ii) a material defect in the construction of the Facilities shall become apparent, or (iii) title to or the use of all or any portion of the Mortgaged Property shall be lost by reason of a defect in title. Each notice shall describe generally the nature and extent of such damage, destruction or taking. (b) If the Net Proceeds arising from any single event, or any single substantially related sequence of events, is not more than $50,000, the Borrower shall retain such Net Proceeds and apply the same to the prompt completion, repair or restoration of the Mortgaged Property, and shall promptly thereafter report to BB&T regarding the use of such Net Proceeds. (c) If the Net Proceeds arising from any single event, or any single substantially related sequence of events, is more than $50,000, then the Borrower shall cause such Net Proceeds to be paid to an escrow agent (which shall be a bank, trust company or similar entity exercising fiduciary responsibilities) for deposit in a special escrow fund to be held by such escrow agent. The Borrower shall thereafter provide for the application of all Net Proceeds to the prompt completion, repair or restoration of the Facilities, as the case may be. The escrow agent shall disburse Net Proceeds for the payment of such costs upon receipt of requisitions in substantially the form of Exhibit A to the Project Fund Agreement. If the Net Proceeds shall be insufficient to pay in full the cost of completion, repair or restoration, the Borrower shall either (i) complete the work and pay any cost in excess of the Net Proceeds, or (ii) not carry out such completion, repair or restoration, and instead apply the Net Proceeds, together with other available funds as may be necessary, to the prepayment of all outstanding Required Payments pursuant to Section 3.03. (d) Any repair, restoration, modification, improvement or replacement paid for in whole or in part out of Net Proceeds shall be the Borrower's property and shall be part of the Facilities. ARTICLE VII THE DEED OF TRUST TRUSTEE 7.01. Deed of Trust Trustee's Liability. The Deed of Trust Trustee shall suffer no liability by virtue of its acceptance of this trust except such as may be incurred as a result of the Deed of Trust Trustee's failure to account for the proceeds of any sale under this Agreement. 7.02. Substitute Trustees. If the Deed of Trust Trustee, or any successor, shall die, become incapable of acting or renounce its trust, or if for any reason BB&T desires to replace the Deed of Trust Trustee, then BB&T shall have the unqualified right to appoint one or more Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 19 20 substitute or successor Deed of Trust Trustees by instruments filed for registration in the office of the Register of Deeds where this Agreement is recorded. Any such removal or appointment may be made at any time without notice, without specifying any reason therefor and without any court approval. Any such appointee shall become vested with title to the Mortgaged Property and with all rights, powers and duties conferred upon the Deed of Trust Trustee by this Agreement in the same manner and to the same effect as though such Deed of Trust Trustee were named as the original Deed of Trust Trustee. ARTICLE VIII DEFAULTS AND REMEDIES; FORECLOSURE 8.01. Events of Default. An "Event of Default" is any of the following: (a) The Borrower's failing to make any Installment Payment when due. (b) The occurrence of an Event of Nonappropriation. (c) The Borrower's breaching or failing to perform or observe any term, condition or covenant of this Agreement or of the Project Fund Agreement on its part to be observed or performed, other than as provided in subsections (a) or (b) above, including payment of any Additional Payment, for a period of 15 days after written notice specifying such failure and requesting that it be remedied shall have been given to the Borrower by BB&T, unless BB&T shall agree in writing to an extension of such time prior to its expiration. (d) The institution of proceedings under any bankruptcy, insolvency, reorganization or similar law by or against the Borrower as a debtor, or the appointment of a receiver, custodian or similar officer for the Borrower or any of its property, and the failure of such proceedings or appointments to be vacated or fully stayed within 30 days after the institution or occurrence thereof. (e) Any warranty, representation or statement made by the Borrower in this Agreement or the Project Fund Agreement is found to be incorrect or misleading in any material respect on the Closing Date (or, if later, on the date made). (f) Any lien, charge or encumbrance (other than Permitted Encumbrances) prior to or affecting the validity of this Agreement is found to exist, or proceedings are instituted against the Borrower to enforce any lien, charge or encumbrance against the Mortgaged Property and such lien, charge or encumbrance would be prior to the lien of this Agreement. (g) The Borrower's failing to pay when due any principal of or interest on any of its general obligation debt. 8.02. Remedies on Default. Upon the continuation of any Event of Default, BB&T may, without any further demand or notice, exercise any one or more of the following remedies: (a) Declare the unpaid principal components of the Installment Payments immediately due and payable; Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 20 21 (b) Proceed by appropriate court action to enforce the Borrower’s performance of the applicable covenants of this Agreement or to recover for the breach thereof; (c) As provided in the Project Fund Agreement, pay over any balance remaining in the Project Fund to be applied against outstanding Required Payments in any manner BB&T may reasonably deem appropriate; and (d) Avail itself of all available remedies under this Agreement, including execution and foreclosure as provided in Sections 8.03 and 8.04, and recovery of attorneys' fees and other expenses. Notwithstanding any other provision of this Agreement, the Borrower, the Deed of Trust Trustee and BB&T intend to comply with Section 160A-20. No deficiency judgment may be entered against the Borrower in violation of Section 160A-20. 8.03. Foreclosure; Sale under Power of Sale. (a) Right to foreclosure or sale. Upon the occurrence and continuation of an Event of Default, at BB&T's request, the Deed of Trust Trustee shall foreclose the Mortgaged Property by judicial proceedings or, at BB&T's option, the Deed of Trust Trustee shall sell (and is hereby empowered to sell) all or any part of the Mortgaged Property (and if in part, any such sale shall in no way adversely affect the lien created hereby against the remainder) at public sale to the last and highest bidder for cash (free of any equity of redemption, homestead, dower, curtesy or other exemption, all of which the Borrower expressly waives to the extent permitted by law) after compliance with applicable State laws relating to foreclosure sales under power of sale. The Deed of Trust Trustee shall, at BB&T's request, execute a proper deed or deeds to the successful purchaser at such sale. (b) Bank's bid. BB&T may bid and become the purchaser at any sale under this Agreement, and in lieu of paying cash therefor may make settlement for the purchase price by crediting against the Required Payments the proceeds of sale net of sale expenses, including the Deed of Trust Trustee's commission, and after payment of such taxes and assessments as may be a lien on the Mortgaged Property superior to the lien of this Agreement (unless the Mortgaged Property is sold subject to such liens and assessments, as provided by State law). (c) Borrower's bid. The Borrower may bid for all or any part of the Mortgaged Property at any foreclosure sale; provided, however, that the price bid by the Borrower may not be less than an amount sufficient to provide for full payment of the Required Payments. (d) Successful bidder's deposit. At any such sale the Deed of Trust Trustee may, at its option, require any successful bidder (other than BB&T) immediately to deposit with the Deed of Trust Trustee cash or a certified check in an amount equal to all or any part of the successful bid, and notice of any such requirement need not be included in the advertisement of the notice of such sale. (e) Application of sale proceeds. The proceeds of any foreclosure sale shall be applied in the manner and in the order prescribed by State law, it being agreed that the expenses of any such sale shall include a commission to the Deed of Trust Trustee of five percent of the gross sales price Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 21 22 for making such sale and for all services performed under this Agreement. Any proceeds of any such sale remaining after the payment of all Required Payments and the prior application thereof in accordance with State law shall be paid to the Borrower. 8.04. Possession of Mortgaged Property. During the continuation of an Event of Default, the Borrower shall immediately lose the right to possess, use and enjoy the Mortgaged Property (but may remain in possession of the Mortgaged Property as a tenant at will of BB&T), and thereupon the Borrower (a) shall pay monthly in advance to BB&T a fair and reasonable rental value for the use and occupation of the Mortgaged Property (in an amount BB&T shall determine in its reasonable judgment), and (b) upon BB&T's demand, shall deliver possession of the Mortgaged Property to BB&T or, at BB&T's direction, to the purchaser of the Mortgaged Property at any judicial or foreclosure sale under this Agreement. In addition, upon the continuation of any Event of Default, BB&T, to the extent permitted by law, is hereby authorized to (i) take possession of the Mortgaged Property, with or without legal action, (ii) lease the Mortgaged Property, (iii) collect all rents and profits therefrom, with or without taking possession of the Mortgaged Property, and (iv) after deducting all costs of collection and administration expenses, apply the net rents and profits first to the payment of necessary maintenance and insurance costs, and then to the Borrower's account and in reduction of the Borrower's corresponding Required Payments in such fashion as BB&T shall reasonably deem appropriate. BB&T shall be liable to account only for rents and profits it actually receives. 8.05. Due on Sale Provision; Acceleration. BB&T may, at its option, require the immediate payment in full of the Required Payments and the Amount Advanced and all other sums secured by this Financing Agreement upon the sale, transfer, conveyance or encumbrance of all or any part of the Mortgaged Property, or any legal or beneficial interest in the Mortgaged Property, without BB&T’s prior written consent. This option applies whether the sale, transfer, conveyance or encumbrance is voluntary, involuntary, by operation of law or otherwise, and includes (i) any creation of lien or encumbrance, whether or not subordinate to the lien created pursuant to this Financing Agreement, (ii) the creation of any easement, right-of-way or similar interest other than such as would constitute a Permitted Encumbrance, or (iii) the grant of any leasehold or similar interest or any option to purchase, right of first refusal or similar interest. 8.06. No Remedy Exclusive; Delay Not Waiver. All remedies under this Agreement are cumulative and may be exercised concurrently or separately. The exercise of any one remedy shall not be deemed an election of such remedy or preclude the exercise of any other remedy. If any Event of Default shall occur and thereafter be waived by the other parties, such waiver shall be limited to the particular breach so waived and shall not be deemed a waiver of any other breach under this Agreement. 8.07. Payment of Costs and Attorney's Fees. If BB&T employs an attorney to assist in the enforcement or collection of Required Payments, or if the Deed of Trust Trustee or BB&T voluntarily or otherwise shall become a party or parties to any suit or legal proceeding (including a proceeding conducted under any state or federal bankruptcy or insolvency statute) to protect the Mortgaged Property, to protect the lien of this Agreement, to enforce collection of the Required Payments or to enforce compliance by the Borrower with any of the provisions of this Agreement, the Borrower agrees to pay reasonable attorneys' fees and all of the costs that may reasonably be Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 22 23 incurred (whether or not any suit or proceeding is commenced), and such fees and costs (together with interest at the Prime Rate) shall be secured as Required Payments. ARTICLE IX MISCELLANEOUS 9.01. Notices. (a) Any communication required or permitted by this Agreement must be in writing. (b) Any communication under this Agreement shall be sufficiently given and deemed given when delivered by hand or on the date shown on a certified mail receipt, or delivery receipt from a national commercial package delivery service, if addressed as follows: (i) if to the Borrower, to County of New Hanover, 230 Government Center Drive, Wilmington, North Carolina 28403, Attention: Investment Officer; (ii) if to the Deed of Trust Trustee, to 5130 Parkway Plaza Boulevard, Charlotte, North Carolina 28217, Attention: Governmental Finance; or (iii) if to BB&T, to 5130 Parkway Plaza Boulevard, Charlotte, North Carolina 28217, Attention: Governmental Finance. (c) Any communication to the Deed of Trust Trustee shall also be sent to BB&T. (d) Any addressee may designate additional or different addresses for communications by notice given under this Section to each of the others. 9.02. No Assignments by Borrower. The Borrower shall not sell or assign any interest in this Agreement. 9.03. Assignments by BB&T. BB&T may, at any time and from time to time, assign all or any part of its interest in the Site, the Facilities or this Agreement, including, without limitation, BB&T's rights to receive Required Payments. Any assignment made by BB&T or any subsequent assignee shall not purport to convey any greater interest or rights than those held by BB&T pursuant to this Agreement. The Borrower agrees that this Agreement may become part of a pool of obligations at BB&T's or its assignee's option. BB&T or its assignees may assign or reassign all or any part of this Agreement, including the assignment or reassignment of any partial interest through the use of certificates evidencing participation interests in this Agreement. Any assignment by BB&T may be only to a bank, insurance company, or similar financial institution or any other entity approved by the LGC. Notwithstanding the foregoing, no assignment or reassignment of BB&T's interest in the Mortgaged Property or this Agreement shall be effective unless and until the Borrower shall receive a duplicate original counterpart of the document by which such assignment or reassignment is made disclosing the name and address of each such assignee. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 23 24 The Borrower further agrees that BB&T's interest in this Agreement may be assigned in whole or in part upon terms which provide in effect that the assignor or assignee will act as a collection and paying agent for any holders of certificates of participation in this Agreement, provided the Borrower receives a copy of such agency contract and such collection and paying agent covenants and agrees to maintain for the full remaining term of this Agreement a written record of each assignment and reassignment of such certificates of participation. The Borrower agrees to execute any document reasonably required in connection with any assignment. Any assignor must provide notice of any assignment to the Borrower, and the Borrower shall keep a complete and accurate record of all assignments as required by the Code. After the giving of any such notice, the Borrower shall thereafter make all payments in accordance with the notice to the assignee named therein and shall, if so requested, acknowledge such assignment in writing, but such acknowledgment shall in no way be deemed necessary to make the assignment effective. 9.04. Amendments. No term or provision of this Agreement may be amended, modified or waived without the prior written consent of the Borrower and BB&T. 9.05. No Marshalling. The Borrower hereby waives any and all rights to require marshalling of assets in connection with the exercise of any remedies provided in this Agreement or as permitted by law. 9.06. Governing Law. The Borrower, BB&T and the Deed of Trust Trustee intend that State law shall govern this Agreement. 9.07. Liability of Officers and Agents. No officer, agent or employee of the Borrower shall be subject to any personal liability or accountability by reason of the execution of this Agreement or any other documents related to the transactions contemplated hereby. Such officers or agents shall be deemed to execute such documents in their official capacities only, and not in their individual capacities. This Section shall not relieve an officer, agent or employee of the Borrower from the performance of any official duty provided by law. 9.08. Covenants Running with the Land. All covenants contained in this Agreement shall run with the real estate encumbered by this Agreement. 9.09. Severability. If any provision of this Agreement shall be determined to be unenforceable, that shall not affect any other provision of this Agreement. 9.10. Non-Business Days. If the date for making any payment or the last day for performance of any act or the exercising of any right shall not be a Business Day, such payment shall be made or act performed or right exercised on or before the next preceding Business Day. 9.11. Entire Agreement. This Agreement constitutes the Borrower's entire agreement with respect to the general subject matter covered hereby. 9.12. Binding Effect. Subject to the specific provisions of this Agreement, and in Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 24 25 particular Section 9.03, this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties and their respective successors and assigns. 9.13 E-Verify. BB&T understands that “E-Verify” is a federal program operated by the United States Department of Homeland Security and other federal agencies, or any successor or equivalent program used to verify the work authorization of newly hired employees pursuant to federal law in accordance with Section 64-25(5) of the General Statutes of North Carolina, as amended. BB&T uses E-Verify to verify the work authorization of its employees in accordance with Section 64-26(a) of the General Statutes of North Carolina, as amended. BB&T will require that any subcontractor that it uses in connection with the transactions contemplated by this Contract certify to such subcontractor's compliance with E-Verify. 9.14 Iran Divestment Act Certification. BB&T hereby certifies that BB&T is not on the Iran Final Divestment List (“List”) created by the North Carolina State Treasurer pursuant to Section 147-86.58 of the North Carolina General Statutes. The remainder of this page left blank intentionally; signature page follows. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 25 26 IN WITNESS WHEREOF, the Borrower has caused this instrument to be executed as of the day and year first above written by duly authorized officers. (SEAL) ATTEST: By: ________________________________ COUNTY OF NEW HANOVER, NORTH CAROLINA By: _______________________________ Printed Name: ________________________ Title: _______________________________ Printed Name: _______________________ Title: ______________________________ * * * * * * STATE OF NORTH CAROLINA; COUNTY OF NEW HANOVER I, a Notary Public of such County and State, certify that ________________________ and _____________________________ personally came before me this day and acknowledged that they are the _______________________ and _____________________, of the County of New Hanover, North Carolina, and that by authority duly given and as the act of the County of New Hanover, North Carolina, the foregoing instrument was signed in the Borrower's name by such _________________, sealed with its corporate seal and attested by such ___________________. WITNESS my hand and official stamp or seal, this ___ day of February, 2018. [SEAL] __________________________________________ Notary Public Notary’s printed name: ______________________ My commission expires: ______________ This instrument has been pre-audited in the manner required by The Local Government Budget and Fiscal Control Act. By: ________________________________ Investment Officer County of New Hanover, North Carolina [Financing Agreement and Deed of Trust for $9,073,400 from the County of New Hanover, North Carolina, for the benefit of Branch Banking and Trust Company] Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 26 27 BRANCH BANKING AND TRUST COMPANY By: __________________________________ Printed Name: _________________________ Title: ________________________________ This contract has been approved under the provisions of Article 8, Chapter 159 of the General Statutes of North Carolina. Greg C. Gaskins Secretary, North Carolina Local Government Commission By _________________________________ [Greg C. Gaskins or Designated Assistant] [Financing Agreement and Deed of Trust for $9,073,400 from the County of New Hanover, North Carolina, for the benefit of Branch Banking and Trust Company] Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 27 28 EXHIBIT A -- SITE DESCRIPTION [LEGAL DESCRIPTION TO BE PROVIDED BY ATTORNEY IN WORD FORMAT PRIOR TO CLOSING] Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 28 29 EXHIBIT B -- IMPROVEMENTS DESCRIPTION [BORROWER TO PROVIDE SHORT NARRATIVE DESCRIPTION OF PROPOSED IMPROVEMENTS TO OGDEN FIRE STATION PRIOR TO CLOSING] Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 29 30 EXHIBIT C -- EXISTING ENCUMBRANCES [FROM TITLE COMMITMENT – TO BE PROVIDED BY ATTORNEY PRIOR TO CLOSING] Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 30 31 EXHIBIT D-- PAYMENT SCHEDULE Payment Schedule to Financing Agreement and Deed of Trust dated as of February 9_, 2018 (the "Financing Agreement"), granted by the County of New Hanover, North Carolina, to BB&T Collateral Service Corporation, Deed of Trust Trustee, for the benefit of Branch Banking and Trust Company Contract Number: _____________ The payments required to repay the advance made pursuant to the Financing Agreement call for an amortization period of approximately fifteen (15) years. Payments are due semiannually in arrears in variable amounts with a fixed principal component of $______________. A portion of each payment is paid as and represents payment of interest at an annual interest rate of 3.56%. Payments are due beginning on August 9, 2018, and semiannually thereafter, with a final payment of all outstanding principal and accrued and unpaid interest due on February 9, 2033, all as set forth in the attached amortization schedule. Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 31 32 [INSERT AMORTIZATION SCHEDULE HERE] Board of Commissioners - January 22, 2018 ITEM: 12- 2 - 32 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: Strategy & Budget PRESENTER(S): Chris Coudriet, County Manager CONTACT(S): Chris Coudriet and Beth Schrader, Chief Strategy & Budget Officer SUBJECT: Consi derati on of Adopti on of 2018-2023 Strategi c P l an BRIEF SUMMARY: At the September 18, 2017 meeting, the Board re c e ive d a five-year repo rt o ut that detailed the many positive community and organizational results that were accomplished under the Board's leadership during the 2012- 2017 Board-adopted Strategic P lan horizon. The Board reaffirmed its expectation for, and co mmitment to, strategic management and directed staff to update and revise the strategic plan. Over the co urse of seve ral months, County Administration wo rked in collaboration with key community partners, department heads and other co unty staff to identify new strate gies, strate gic o bjective s, and measures of success. On December 18 , 2 01 7, County Administration presented a propo sed draft strategic plan fo r 2018-2023 that maintains the Bo ard's fo c us o n Superio r P ublic Health and Safety, Superior Education and Workforce, Intelligent Growth and Economic Development, Effective County Management and Strong Financial Performance. Staff will present the recommended strategic plan and ask for Board action. STRATEGIC PLAN ALIGNMENT: Effective County Management • Increase efficiency and quality of key business processes • Deliver value for taxpayer money RECOMMENDED MOTION AND REQUESTED ACTIONS: Request adoption of the proposed 2018-2023 Strategic Plan as presented. ATTACHMENTS: 2018-2023 Strategic Plan COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Adopt the 2018-2023 Strategic Plan as presented. Board of Commissioners - January 22, 2018 ITEM: 13 COMMISSIONERS' ACTIONS: Adopted the 2018-2023 Strategic Plan 5-0. Board of Commissioners - January 22, 2018 ITEM: 13 SUPERIOR EDUCATION& WORKFORCEINTELLIGENT GROWTH &ECONOMIC DEVELOPMENT NEW HANOVER COUNTY STRATEGIC PLAN 2018-2023 • Prevent and reduce opioid abuse • Increase access to programs to prevent and reduce obesity • Sustain the community capacity to prepare for and respond to public safety demands • Support the private sector’s need for talent to fill higher-wage jobs • Promote early learning that ensures life-long resiliency• Increase the diversity and number of higher-wage jobs • Leverage public infrastructure to encourage private investment • Encourage development of complete communities in the unincorporated county SUPERIOR PUBLICHEALTH & SAFETY New Hanover County is committed to progressive public policy, superior service, courteous contact, judicious exercise of authority, and sound fiscal management to meet the needs and concerns of our citizens today and tomorrow. A vibrant, prosperous, diverse coastal community committed to building a sustainable future for future generations. VISION PROFESSIONALISM • INTEGRITY • INNOVATION • STEWARDSHIP • ACCOUNTABILITY • Continuous focus on the customer experience • Increase transparency and awareness about county actions • Deliver quality service at the right time Align services and programs with strategic priorities Provide better, faster, leaner customer-driven practices Build capacity for data- driven decision making Develop and nurture partnerships to deliver strategic objectives Engage in continuous learning Communicate what the county does and why Hire and retain people committed to public service Foster a culture of agility and flexibility to create innovative solutions • Minimize taxes and fees • Proactively manage the county budget • Plan for the long-term financial health of the county Internal Business Processes Organizational Capacity MISSION EFFECTIVE COUNTY MANAGEMENT STRONG FINANCIAL PERFORMANCE GOOD GOVERNANCE Board of Commissioners - January 22, 2018 ITEM: 13- 1 - 1 NEW HANOVER COUNTY STRATEGIC PLAN 2018-2023 SUPERIOR EDUCATION& WORKFORCEINTELLIGENT GROWTH & ECONOMIC DEVELOPMENT Increase the diversity and number of higher-wage jobs SUPERIOR PUBLICHEALTH & SAFETY Leverage public infrastructure to encourage private investment Encourage development of complete communities* in the unincorporated county • Increase jobs that pay > 6.5% above the living wage• $3 billion increase in tax base • Increase elements of complete communities across New Hanover County Support the private sector’s need for talent to fill higher-wage jobs Promote early learning that ensures life-long resiliency • Decrease the amount of time to fill positions in target sectors locally • 75% of children are ready for kindergarten on the Kindergarten Entry Assessment Prevent and reduce opioid abuse Increase access to programs to prevent and reduce obesity Sustain the community capacity to prepare for and respond to public safety demands • Decrease opioid- related deaths by 100% • Increase access to nutritious foods, physical activity and education about healthy behaviors within a half mile of 100% of populations at risk for obesity • 100% of emergency response calls at 90th percentile of Fiscal Year 2019 data• 90% of 3rd graders read at least at grade level on the Read to Achieve Test • Reduction in calls per capita • Decrease opioid- related overdoses by 50% • 6,500 new, traded- sector jobs in advanced manufacturing, knowledge sector, and skilled trades • 100% return on investment within 3 miles of new public investments More advanced manufacturing, knowledge sector, and skilled trade jobs available locally Current public assets and future investments increase the tax base Align policies and business practices to support the development of complete communities Businesses stay, start, or expand because the talent exists here or is developed quickly Every child entering kindergarten in NHC has the emotional, social, and physical opportunity to succeed and to, ultimately, perform at grade level Fewer people misusing opiates Community knows risks of obesity and individuals can equitably pursue a life that mitigates risks Preparation that results in the appropriate response and ensures resiliency TARGET DESIRED OUTCOME STRATEGIC OBJECTIVESTRATEGIC OBJECTIVE DESIRED OUTCOME TARGETTARGET DESIRED OUTCOME STRATEGIC OBJECTIVE *Complete communities provide a range of housing sizes and price points, employment opportunities, convenience needs, community facilities, and support services to provide access and opportunity for all NHC citizens. • Increase digital access and digital literacy to enhance workforce skills Board of Commissioners - January 22, 2018 ITEM: 13- 1 - 2 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: County Manager PRESENTER(S): Chris Coudriet, County Manager CONTACT(S): Chris Coudriet SUBJECT: Consi derati on o f Authori zati on to Negoti ate and Si gn a P urchase Ag reement for Approxi matel y 18 Acres Off Carol i na B each Road Wi thi n Muni ci pal Li mi ts BRIEF SUMMARY: New Hanover County, in potential partnership with the City of Wilmington, has the opportunity to secure approximately 18 acres off Caro lina Beach Ro ad within the c ity limits fo r the purposes of preservation of existing open space and develo ping a publicly held recreational complex fo r tennis and swimming on an existing site. This site is a collection of parcels of what was formerly the Echo Farms Golf and Country Club. The county administration is seeking authorization to appro ach the property owne r and nego tiate a purchase agreement for approximately 18 acres including the existing clay tennis courts, tennis clubhouse, and swimming facility. Conditions the county administration would recommend as part of the arrangement include: 1. Purchase of the tract(s) by New Hanover County 2. Purchase cost and first phase development costs equally shared by the county and the City of Wilmington 3. County/city partnership memorialized with an interlocal agreement adopted by both governing boards STRATEGIC PLAN ALIGNMENT: Intelligent Growth and Economic Development • Enhance and add recreational, cultural and enrichment amenities RECOMMENDED MOTION AND REQUESTED ACTIONS: Authorize the co unty manager to ente r into nego tiatio ns to purchase appro ximate ly 1 8 acres from the property owner fo r the purposes o f preserving existing open space and converting existing tennis and swimming facilities into public recreation assets; final approval of the purchase agreement require d by the county commission no later than March 5, 2018. COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. Board of Commissioners - January 22, 2018 ITEM: 14 COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 14 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 REGULAR DEPARTMENT: Governing Body PRESENTER(S): Chairman White CONTACT(S): Kym Crowell, Clerk to the Board SUBJECT: Commi ttee Appoi ntments BRIEF SUMMARY: Vacancies exist on the following Boards and Committees: New Hanover County Cooperative Extension Advisory Council Non-County Agency Funding Committee Wilmington Regional Film Commission STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Keep the public informed on important information RECOMMENDED MOTION AND REQUESTED ACTIONS: Make appointments. ATTACHMENTS: New Hanover County Cooperative Extension Advisory Council New Hanover County Non-County Agency Funding Committee Wilmington Regional Film Commission COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Make appointments. COMMISSIONERS' ACTIONS: The following appointments were made. Cooperative Extension Advisory Council: Board of Commissioners - January 22, 2018 ITEM: 15 Clayton Hamerski was appointed. Non-County Agency Funding Committee: Damien Buchanan was appointed to a 3-year term in the Seniors/Elders category. Elizabeth DeBiasi was appointed to a 3-year term in the Educational category. Fred Gainey was appointed to a 2-year term in the At-Large category. W. Neal Lewis was appointed to a 3-year term in the Cultural/Recreation category. Bruce A. Mason was appointed to a 2-year term in the Public Safety/Judicial category. Randy Reeves was appointed to a 3-year term in the Business/Workforce Training category. Shannon Winslow was appointed to a 2-year term in the Faith-Based category. Wilmington Regional Film Commission: Sherri Robinson was appointed. Board of Commissioners - January 22, 2018 ITEM: 15 Board of Commissioners - January 22, 2018 ITEM: 15- 1 - 1 Board of Commissioners - January 22, 2018 ITEM: 15- 1 - 2 Board of Commissioners - January 22, 2018 ITEM: 15- 1 - 3 Board of Commissioners - January 22, 2018 ITEM: 15- 1 - 4 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 1 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 2 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 3 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 4 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 5 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 6 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 7 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 8 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 9 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 10 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 11 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 12 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 13 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 14 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 15 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 16 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 17 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 18 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 19 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 20 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 21 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 22 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 23 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 24 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 25 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 26 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 27 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 28 Board of Commissioners - January 22, 2018 ITEM: 15- 2 - 29 Board of Commissioners - January 22, 2018 ITEM: 15- 3 - 1 Board of Commissioners - January 22, 2018 ITEM: 15- 3 - 2 Board of Commissioners - January 22, 2018 ITEM: 15- 3 - 3 Board of Commissioners - January 22, 2018 ITEM: 15- 3 - 4 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: January 22, 2018 ADDITIONAL ITEMS DEPARTMENT: Governing Body PRESENTER(S): Chairman White CONTACT(S): Chris Coudriet, County Manager and Kym Crowell, Clerk to the Board SUBJECT: Consi derati on of a Resol uti on Expressi ng Opposi ti on to Off-Shore Dri l l i ng BRIEF SUMMARY: The New Hano ver Co unty Bo ard of Commissioners wishes to public ly express their oppo sition to off-shore drilling via resolution. STRATEGIC PLAN ALIGNMENT: RECOMMENDED MOTION AND REQUESTED ACTIONS: Adopt the resolution. ATTACHMENTS: Resolution COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Approved 5-0. Board of Commissioners - January 22, 2018 ITEM: 16 NEW HANOVER COUNTY BOARD OF COMMISSIONERS RESOLUTION EXPRESSING OPPOSITION TO OFF-SHORE DRILLING WHEREAS, the federal government is examining its policies relative to seismic testing, and potential offshore drilling, in the Atlantic Ocean and off the coast of North Carolina; and WHEREAS, the benefits of seismic testing and off shore drilling, if any, to New Hanover County, the surrounding region, or the State of North Carolina, are substantially outweighed by the unacceptable risks of harm to marine life, the coastline environment, property, business, our livelihood, and quality of life; and WHEREAS, New Hanover County has visitors from all over the world come to enjoy the natural beauty of our clean beaches, salt and freshwater marshes, inlets, estuaries and tributaries. The potential damage to North Carolina’s beaches and coastline, should a spill occur, would be devastating to our natural resources and irrevocably harm New Hanover County’s tourism-based economy; and WHEREAS, exploring and drilling for oil poses unacceptable risks of potential harm to the basic economy of New Hanover County and the livelihood of many who sustain themselves working clean, healthy waters in the region; and WHEREAS, it is vital that local and state officials throughout North Carolina and its neighboring states take a unified stand in opposition to off-shore drilling because a mishap in one jurisdiction could negatively impact the coastal environment and economy of adjacent areas; and WHEREAS, other coastal communities and their neighbors have suffered dreadful consequences as the result of off-shore energy exploration including the Prince William Sound, victimized by the Exxon Valdez, and countless Gulf Coast communities harmed by the Deepwater Horizon Oil Spill; and WHEREAS, the State of North Carolina has a long history of hurricanes, and deep water drilling off our state’s coast would increase the chances of platform failures and oil spills due to the vulnerability of the coastal waters to severe weather. The documented dangers that are associated with off-shore drilling would needlessly put our environment, coastline, beaches, fishing, and tourism industry at risk and threaten our way of life in New Hanover County, North Carolina; and WHEREAS, New Hanover County recognizes our economic survival depends on the sustainability of the existing environment and protecting our investments made over a fifty-year period in coastal storm damage reduction. NOW, THEREFORE, BE IT RESOLVED, that the New Hanover County Board of Commissioners expresses its opposition to off-shore drilling and urges the President of the United States, the Secretary of the Interior, the United States Congress, the Governor of the State of North Carolina, and the North Carolina General Assembly to oppose off-shore petroleum policies that risk the health, safety and sound environmental stewardship of North Carolina’s coastline; and Board of Commissioners - January 22, 2018 ITEM: 16- 1 - 1 BE IT FURTHER RESOLVED, that New Hanover County is in opposition to seismic testing and is opposed to the exploration and development of oil/gas resources on the continental shelf or elsewhere off the coast of North Carolina. ADOPTED this the 22nd day of January, 2018. NEW HANOVER COUNTY ___________________________________ Woody White, Chairman ATTEST: ____________________________________ Kymberleigh G. Crowell, Clerk to the Board Board of Commissioners - January 22, 2018 ITEM: 16- 1 - 2