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1996-06-17 RM Exhibits ..' i " INTRODUCED BY: Allen O'Neal, County Manager DATE: June 17, 1996 RESOLUTION PROPOSING ACCEPTANCE OF THE OFFER TO PURCHASE REAL PROPERTY LOCATED AT 805 SOUTH 4TH STREET LEGISLATIVE INTENT/PURPOSE: This resolution relates to the proposed sale of surplus property jointly owned by the City of Wilmington and New Hanover County, more particularly identified as follows: Parcel Number 5409-028-003.000 Address 805 South 4th Street Amount of Offer $1,815.00 Tax Value $1,863.00 Market Value $1,815.00 Offerer Linwood Nesbitt & Wife Eria W.Nesbitt Tommy Lee Nesbitt & Wife Phyllis Nesbitt 612 Bracken Fern Road Wilmington, N. C. 28405 Property Dimensions 26' x 93' This property has been offered to Wilmington Housing Finance and Development, Inc. and Cape Fear Habitat for Humanity. Neither organizatiOn could use the property in their program. The lot size is not large enough for construction of a residence. The offerer(s) has agreed to pay the amount(s) mdicated above for the parcel(s) identified. The parcel(s) has been declared surplus by the County Commissioners and not needed for public purposes. RESOLVED: 1. That pursuant to N.C.G.S. 160A-269, the County Commissioners does hereby propose to accept the offer(s) to purchase identified herein from the offerer(s) as indicated. 2. That New Hanover County reserves the right to reject any and all offers. 3. That New Hanover County will retain any deposit posted by the offerer(s) when: a. The offer is withdrawn after posting the deposit. b. The offerer(s) fail to pay the balance of an approved offer, due in cash, within ten (10) days of receipt of a notice by certified mail of availability of the deed of conveyance. 4. The offerer(s) shall depOSit the sum of 5% of the total offer immediately following adoption of this resolution. ,I /, 5. That the Clerk of the Board of Commissioners wiil publish a notice of the offer(s) as required by N.C.G.S. 160A-269. Adopted at ~ meeting on J 7 ,19ti ATTEST: ~ ~~,d Clerk to the Board -- New Hanover County Board of Cmnnri~ Chairman NEW HANOVER COUNTY TAX COLLECTIONS COLLECTIONS THRU 05/31/96 CURRENT TAX YEAR - 1995 ---~------------------- ORIGINAL TAx LEVY PER SCROLL DISCOVERIES ADDEO LESS ABATEMENTS TOTAL TAXES CHARGED ADVERTISING FEES CHARGED LISTING PENALTIES CHARGED TOTAL LEVY COLLECTIONS TO DATE OUTSTANDING BALANCE PERCENTAGE COLLECTED BACK TAXES ----~----- REAL ESTATE AND PERSONAL PROPERTY CHARGES ADDEO LESS ABATEMENTS TOTAL TAXES DUE COLLECTIONS TO DATE OUTSTANDING BALANCE PERCENTAGE COLLECTED ROOM OCCUPANCY TAX COLLECTIONS PRIVILEGE LICENSE COLLECTIONS EMS COLLECTIONS AD VALOREM --------------- $ 41,630,320.15 2,333,890.79 107,660.80- --------------.- $ 49,856,550.14 13,328.00 43,020.46 --------------- $ 49,912,898.60 49,344,345.30- --------------- $ 568,553.30 98.86%* $ 2,463,963.65 89,602.06 165,552.51- --------------- $ 2,388,013.34 738,036.01- ---------_._---- $ 1,649,917.21 30.91% MAY 1996 160,974.94 526.00 .00 TOTAL MONEY PROCESSED THRU COLLECTION OFFICE FOR CITY OF WILHINGTON, WRIGHTSVILLE BEACH, CAROLINA BEACH TO DATE - $1b,104,024.47. THIS REPORT IS FOR FISCAL YEAR BEGINNING JULY 1, ~CT~U:LY SUBMI~hED, . -\- j..,r~... (. I :'-' (';\. ~ \.. ~t,-V PATRICIA J. RA~OR COLLECTOR OF REVENUE CONSENT AGENDA DATE:_________ ITEM NO.______ MOTOR VEHICLE $ 4,681,810.64 41,981.59 47,419.51- --------------- $ 4,676,312.12 .00 .00 $ 4,616,312.12 4,005,209.09- --------------- $ 611,103.63 65.65%* FISCAL YTD 1,147,235.00 13,221.63 .00 NEW HANOVER COUNTY, BEACH AND KURE * COMBINED COLLECTION PERCENTAGE - 97.73% 1995. CONSENT AGENDA DATE:_________ ITEM NO.______ NEW HANOVER COUNTY FIRE DISTRICT TAX COLLECTIONS COLLECTIONS THRU 05/31/96 CURRENT TAX YEAR - 1995 ----------------------- ORIGINAL TAX LEVY PER SCROLL DISCOVERIES ADDEO LESS-ABATEMENTS TOTAL TAXES CHARGED LISTING PENALTIES CHARGED TOTAL LEVY COLLECTIONS TO OATE OUTSTANDING BALANCE PERCENTAGE COLLECTED BACK TAXES ---------- REAL ESTATE AND PERSONAL PROPERTY $ CHARGES ADDEO LESS ABATEMENTS TOTAL TAXES DUE COLLECTIONS TO DATE OUTSTANDING BALANCE PERCENTAGE COLLECTED THIS REPORT IS FOR FISCAL YEAR BEGINNING JULY 1, 1995. ~CTFULLY SUBMITJfD, -\-{l-V--t (. ~ ~~ \\ . I' \... ~f"'" PATRICIA J. RA~OR COLLECTOR OF REVENUE AD VALOREM MOTOR VEHICLE $ 1,049,185.10 51,251.19 25,021.34- --------------- $ 1,08i,414.95 1,011.33 --------------- $ 1,082,432.28 1,071,831.91- --------------- $ 10,600.31 99.02%* $ 113,400.26 1,256.26 1,225.27- --------------- $ 113,431.25 .00 $ 113,431.25 99,146.12- --------------- $ 14,285.13 87.41%* 44,873.72 2,998.68 768.14- $ 41,103.66 15,316.95- --------------- $ 31,126.11 32.64% * COMBINED COLLECTION PERCENTAGE - INTRODUCED BY: Allen O'Neal, County Manager DATE: June 17, 1996 RESOLUTION AUTHORIZING CONVEYANCE OF LOTS TO THE WILMINGTON HOUSING FINANCE AND DEVELOPMENT, INC. (WHFD) RESOLVED: In accordance WIth the real property policy adopted by City Council and the County Commission, the following lot has been Identified by Wilmington Housing Finance and Development, Inc. (WHFD) as suitable for construction of owner-occupied, single-family reSIdences. In accordance with the policy, WHFD must construct or move existing owner-occupied srngle family reSIdences onto the lots within 18 months. The Wilmington City Council will be requested to convey its interest in the lot at its June 4, 1996 meeting. NOW, THEREFORE, BE IT RESOLVED: That the County COmmIssion authorizes the conveyance of the below indicated parcel to WHFD. Parcel Number 048-09-038-022.000 Address 911 N 5th Street Tax Value $2,051.00 BE IT FURTHER RESOLVED: That this action is contingent upon approval by the Wilmington CIty Council. Adopted at a regular meeting on ~/1 ,192L RESOLUTION OF TIlE BOARD OF COMMISSIONERS OF NEW HANOVER COUNTY WHEREAS, after due advertisement, bids were received and publicly opened by the Finance Department at 3:00 p.m. on the 22nd day of May, 1996, at the County Administration Building, 320 Chestnut Street, Wilmington, North Carolma, and the following bids were received for twenty-one (2]) AS/400 printers for the Social Services Department, Bid # 96-0445. Eastern Technology Associates, Inc. Atlantic Computer Division of Gary Brown Associates, Inc. $92,295.00 $97,629.00 AND WHEREAS, the Social Services Department, the M.I.S. Director, the Finance Director and the County Manager recommend that the contract be awarded to Eastern Technology Associates, Inc. of WIlmington, North Carolina, the lowest responsible bidder, in the amount of Ninety-two Thousand Two Hundred Ninety-five Dollars ($92,295.00); AND WHEREAS, funds have been prevIOusly appropriated and are now m account no 110-530-5310-2000-6400 to cover thiS contract; NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of New Hanover County that the contract for twenty-one (21) AS/400 pnnters for the Social Services Department, Bid # 96-0445 be awarded to Eastern Technology AsSOCiates, Inc. m the amount of Ninety-two Thousand Two Hundred Ninety-five Dollars ($92,295 00); and that the County is hereby authorized and directed to execute the contract, contract form to be approved by the County Attorney. This 17th day of June, 1996. 1lLA6.~ Chairman, Board of County Commissioners ATTEST: . ."V / ~~ :/ /V~___ CI rk to the-Board NEW HANOVER COUNTY, NORTH CAROLINA 1996-97 BUDGET ORDINANCE BE IT ORDAINED by the Board of Commissioners of New Hanover County, North Carolina, in regular session assembled Section 1 The following amounts are hereby appropriated for the operation of New Hanover County government and its activities for the fiscal year beginning July 1, 1996, and ending June 30, 1997, according to the following summary and schedules. Summary General Fund $ One-Half Cent Sales Tax Fund New Hanover County Schools Fund Emergency Telephone Fund Room Occupancy Tax Fund Environmental Management Fund TOTAL BUDGET $ Estimated Fund Balance Total Revenues Appropriated Appropriation 109,076,845 $ 3,507,112 $ 112,583,957 9,161,806 0 9,161,806 32,993,167 0 32,993,167 59,000 0 59,000 2,058,000 0 2,058,000 10,390,686 300,000 10,690,686 163,739,504 $ 3,807,112 $ 167,546,616 GENERAL FUND Section 2 That for said fiscal year there is hereby appropriated out of the General Fund the following Function Appropriation Current General Government Human Services Public Safety Economic & Physical Development Cultural & Recreational Education Contingency Transfers Debt Service Debt Service Total Appropriations - General Fund $ 14,582,852 36,771,775 18,471,971 992,953 4,980,150 31,087,568 350,000 3,011,811 $ 2,334,877 112,583,957 Section 3 It is estimated that the following General Fund revenues will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing General Fund appropriations Revenue Source Ad Valorem Taxes Sales Tax Other Taxes Intergovernmental Revenues Charges for Services Other Revenues Transfer In/Special Fire Service District Transfer InlWater & Sewer District Transfer In/Emergency Telephone Fund ABC Revenue Appropriated Fund Balance Total Revenues - General Fund $ Amount 57,942,000 14,500,000 6,077,409 20,863,448 6,487,756 2,061,982 217,000 79,250 59,000 789,000 3,507,112 112,583,957 $ ONE-HALF CENT SALES TAX FUND Section 4 For said fiscal year there is hereby appropriated out of the One-Half Cent Sales Tax Fund the sum of $ 9,161,806 Section 5 It is estimated that the following One-Half Cent Sales Tax Fund revenues will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing One-Half Cent Sales Tax Fund appropriations. Revenue Source Amount Sales Tax Total Revenues - One-Half Cent Sales Tax Fund $ $ 9,161,806 9,161,806 NEW HANOVER COUNTY SCHOOLS FUND Section 6. In accordance with G S 115C-429 (b), the following appropriations are made to the New Hanover County Schools Fund. The budget resolution adopted by the New Hanover County Schools Board of Education shall conform to the appropriations set forth in the budget ordinance for current expense and capital outlay Once adopted, such ordinance shall not be amended without the prior approval of the Board of Commissioners if the cumulative effect of such amendment would be to increase or decrease the amount of County appropriation allocated by purpose, function, or project by 25 percent or more Category Current Expense Capital Outlay Debt Service Contribution to School Pension Fund Contributions to Outside Agencies Total Appropriation - New Hanover County Schools Fund Appropriation $ 26,276,375 2,917,475 3,689,317 100,000 10,000 32,993,167 $ Section 7 It is estimated that the following New Hanover County Schools Fund revenues will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing Public Schools Building Capital Fund appropriations Revenue Source Amount Transfer In/Half-Cent Sales Tax Fund Transfer In/General Fund Total Revenues - New Hanover County Schools Fund 4,122,813 28,870,354 32,993,167 $ EMERGENCY TELEPHONE FUND Section 8 For said fiscal year there is hereby appropriated out of the Emergency Telephone Fund the sum of" $ 59,000 Section 9. It is estimated that the following Emergency Telephone Fund will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing Emergency Telephone appropriations. Revenue Source Amount 911 - Surcharge Total Revenues - Emergency Telephone Fund $ $ 59,000 59,000 ROOM OCCUPANCY TAX FUND Section 10 For said fiscal year there is hereby appropriated out of the Room Occupancy Tax Fund the sum of" $ 2,058,000 Section 11 It is estimated that the following Room Occupancy Tax Fund revenues will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing Room Occupancy Tax Fund appropriations Revenue Source Amount Room Occupancy Tax Charges For Services Total Revenues - Room Occupancy Tax Fund $ 2,033,000 25,000 2,058,000 $ ENVIRONMENTAL MANAGEMENT FUND Section 12. For said fiscal year there is hereby appropriated out of the Environmental Management Fund the sum of" $ 10;690,686 Section 13 It is estimated that the following Environmental Management Fund revenues will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing Environmental Management Fund appropriations Revenue Source Amount Intergovernmental Revenues Charges for Services Other Revenues Transfer In\General Fund Appropriated Fund Balance Total Revenues - Environmental Management Fund $ 250,000 7,342,000 5,000 2,793,686 300,000 10,690,686 $ GENERAL FUND Section 14 There is hereby levied in the General Fund for the fiscal year ending June 30, 1997, the rate of 64 5 cents on each One Hundred Dollars ($10000) assessed valuation of taxable property as listed as of January 1, 1996, for the purpose of raising the revenues from the current year's property tax as set forth in the foregoing appropriations. Such rate is based on an estimated total appraised value of property for the purpose of taxation of $9,000,000,000 with an assessment ratio of 100 percent of appraised value Estimated collection rate of 98 percent is based on a fiscal year 1995-96 collection rate of 98 percent. Section 15 The Board of Education shall supply the County on a monthly basis an accounting of its expenditures for school facilities maintenance and renovations, exclusive of those authorized under the bond issue on the County Bond Issue, in a format established by the County Commissioners Section 16 The Board of Education shall notify the County in writing of any changes made to their planned capital fund expenditures. The notification should include (1) nature of the change, (2) reason for the change, (3) dollar amount of any expenditure change, by planned project, and (4) plans for, and estimated cost of, completing planned project in the future, if completion as originally anticipated will not be possible. Section 17 Copies of this Budget Ordinance shall be furnished to the County Manager and the County Finance Director of New Hanover County, North Carolina, to be kept on file by them for their direction in the collection of revenues and the expenditures of amounts appropriated. Section 18 That appropriations herein authorized and made shall have the amount of outstanding purchase orders as of June 30, 1996, added to each appropriation as it appears in order to account for the payment against the fiscal year in which it is paid ADOPTED, this 17th day of June, 1996 (7fL)\-/ ~ Cle~~o the Board - 2Ui6~ Robert G Greer, Chairman Board of County Commissioners NEW HANOVER COUNTY, NORTH CAROLINA SPECIAL FIRE DISTRICT 1996-97 BUDGET ORDINANCE BE IT ORDAINED by the Board of Commissioners of New Hanover County, North Carolina, in regular session assembled Section 1 The following amount is hereby appropriated for the operation of New Hanover County Special Fire District and its activities for the fiscal year beginning July 1, 1996, and ending June 30, 1997- $ 3,902,185 Section 2 It is estimated that the following Special Fire District revenues will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing Special Fire District appropriations Revenue Source Amount Ad Valorem Taxes Sales Tax Other Taxes Appropriated Fund Balance Total Revenues - Special Fire District Fund 1,263,355 358,070 280,760 2,000,000 3,902,185 $ Section 3 There is hereby levied in the Special Fire District Fund for the fiscal year ending June 30, 1997, the rate of 2 5 cents on each One Hundred Dollars ($10000) assessed valuation of taxable property as listed as of January 1, 1996, for the purpose of raising the revenues from the current year's property tax as set forth in the foregoing appropriations Such rate is based on an estimated total appraised value of property for the purpose of taxation of $5,059,000,000 with an assessment ratio of 100 percent of appraised value Estimated collection rate of 98 percent is based on fiscal year 1995-96 collection rate of 98 percent. Section 4 Copies of the Budget Ordinance shall be furnished to the County Manager and the Finance Director of New Hanover County, North Carolina, to be kept on file by them for their direction in the collection of revenues and the expenditures of amounts appropriated Section 5 That appropriations herein authorized and made shall have the amount of outstanding purchase orders as of June 30, 1996, added to each appropriation as it appears in order to account for the payment against the fiscal year in which it is paid ADOPTED, this 17th day of June, 1996 ~dV ~_ CI k to the Board /(Jd~ Robert G Greer, Chairman Board of County Commissioners NEW HANOVER COUNTY, NORTH CAROLINA WA TER AND SEWER DISTRICT 1996-97 BUDGET ORDINANCE BE IT ORDAINED by the New Hanover County, North Carolina, Water and Sewer District in special session assembled Section 1 The following amount is hereby appropriated for the operation of New Hanover County Water and Sewer District and its activities for the fiscal year beginning July 1, 1996, and ending June 30, 1997, according to the following schedule Section 2 For said fiscal year there is hereby appropriated out of the Water and Sewer District Fund the sum of' $ 10,976,993 Section 3 It is estimated that the following Water and Sewer District Fund revenues will be available during the fiscal year beginning July 1, 1996, and ending June 30, 1997, to meet the foregoing Water and Sewer District Fund appropriations. Revenue Source Amount Charges For Service Operating Transfers Interest Total Revenues - Water and Sewer District Fund $ 5,737,000 5,038,993 201,000 10,976,993 $ Section 4' Copies of this Budget Ordinance shall be furnished to the Finance Director of the New Hanover County, North Carolina, Water and Sewer District, to be kept on file by him for his direction in the collection of revenues and expenditures of amounts appropriated Section 5 That appropriations herein authorized and made shall have the amount of outstanding purchase orders as of June 30, 1996, added to each appropriation as it appears in order to account for the payment against the fiscal year in which it is paid ADOPTED, this 17th day of June, 1996 ",,,II.,,.,, !\,"'\atR 0011';"'" . ..........:1>0 ........... 1'1- '" ...~.... ."...._~ $ ... "\ -"'-:. :~I l' ; :~i .:...; _ . .u_ ;...\ .' liEE <;... Y ......~~.... $.,l '.~.fl ......... "~,, ..... "NO SE'tlt ~~" '.:., J r:. ~,,,, l"\\ -------~--~-~----'----------_._--.~-~------~-------.::-.. 'J\/jw :Jfanover County 'Board of CommL\swners 2?sso{u tion WHEREAS, New Hanover County is interested in providmg financial support to agencies that serve public purposes including economic and physical development, cultural and recreational programs, human services, industrial promotion, and public safety; and WHEREAS, New Hanover County IS Interested in providing financial support to agencies ttlat benefit the citizens of the County. NOW, THEREFORE, BE IT RESOLVED by the New Hanover County Board of Commissioners' That the County Manager IS authorized and directed to enter into the appropriate contracts with outside agencies for the amount of funding approved in the New Hanover County fiscal year 1996-97 budget. Signed this the 17th day of June 1996. /;) j /~J.. /1 Ht.;:j I 0, ,'" AJ...v.- Robert G Greer Chairman, New Hanover County Board of Commissioners " / ./ PROJECT ORD INANCE SHELL ISLAND BEACH RENOURISHMENT BE IT ORDAINED, by the Board of Commissioners of New Hanover County: 1. New Hanover County (County) is engaged in the Construction of the Shell Island Beach Renourishment proj ect, which capital project involves the construction and/or acquisition of capital assets. 2. County desires to authorize and budget for said project in a proj ect ordinance adopted pursuant to North Carolina General Statute $159-13.2, such ordinance to authorize all appropriations necessary for the completion of said project. NOW, THEREFORE, WITNESSETH THAT: 1. This proj ect ordinance 1S adopted pursuant to North Carolina General Statute $159-13.2. 2. The project undertaken pursuant to this ordinance is the Construction of the Shell Island Beach Renourishment project which project is herewith authorized. 3. The revenue that will finance said project is: Contribution from Shell Island Resort Homeowners' Association Total $600,000 $600,000 4. The following appropriations necessary for the project are herewith made from the revenue listed above: Engineering $ ... ." .. Contracted Services 600,000 Total $ 600,000 5. This project ordinance shall be entered in the minutes of the Board of Commissioners of New Hanover County. Within five days hereof, copies of this ordinance shall be filed with the finance and budget offices in New Hanover County, and with the Clerk to the Board of Commissioners of New Hanover County. Adopted this /7~ day of ~ , 1996. ~~d~ Clerk to the Board W~~ Robert G. Greer, Chairman Board of County Commissioners 9\[g,w J{anover County 'Board of Commissioners 'Rss o[u tion WHEREAS, the Town of Kure Beach has been designated as sponsor for the public beach renourishment project known as the Carolina Beach and Viclnrty Area South, HUrricane Wave and Protection Project, and WHEREAS, the Town of Kure Beach has obtained 100% of the easements and rights-of-way required to construct the project; and WHEREAS, federal funding for the project IS included In the current and proposed budget and IS assured for completion of the project If construction begins in the current year; and WHEREAS, local funding from New Hanover County in the amount of $1.38 million has been appropriated and '$726,000 has been exp-eh-dea; and WHEREAS, Kure Beach has expended $442,000 for acquIsition of the rights-of- way and for the general project expense, and WHEREAS, state funding is needed to acquire federal funding of approximately $9.3 million for this project, NOW, THEREFORE, BE IT RESOLVED by the New Hanover County Board of Commissi~ners that they strongly support and urge passage of a state appropriation of $3.6 million by the North Carolina General Assembly for the Carolina Beach and Vicinity Area South Project. Adopted this the 17th day of June 1996. ATTEST: ~ Robert G Greer, Chairman ~y/~ / Lu F Harrell -.- Clerk to the Board RESOLUTION OF THE WATER AND SEWER DISTRICT BOARD OF COMMISSIONERS OF NEW HANOVER COUNTY WHEREAS, after due advertisement, bids were received and publicly opened by the Finance Department at 400 pm., on the 6th day of June, 1996, at the County Administration Building, 320 Chestnut Street, Wilmington, North Carolina, and the following bid was received for a wastewater treatment plant, Bid # 96-0468. Pete Duty & Associates, Inc $69,625.00 AND WHEREAS, the County Engineer, the Finance Director and the County Manager recommend that the contract be awarded to Pete Duty & Associates, Inc. of Durham, North Carolina, the only responsible bidder, in the amount of Sixty-nine Thousand Six Hundred Twenty-five Dollars ($69,625 00), AND WHEREAS, funds have been previously appropriated and are now in Account No. 865-470-8000-6000-140CPO1 G(Job Number) to cover this contract, NOW, THEREFORE, BE IT RESOLVED by the New Hanover County Water and Sewer District Board of Commissioners that the contract for a wastewater treatment plant, Bid # 96-0468 be awarded to Pete Duty & Associates, Inc. in the amount of Sixty-nine Thousand Six Hundred Twenty-five Dollars ($69,625.00); and that the District is hereby authorized and directed to execute the contract, contract form to be approved by the County Attorney. This 17th day of June, 1996. ""...."", ", ell It,... 'I, (SE~.?~....~'PVCf...~..~ .:.. .. 1t~ ::'-11 .: =~i .: 00 . ... ; .. \. .. Si ~ or \. ."'!!!'!!fJ4j ~ ; .~ ~.a ...y-~ ..."$ ".. or.. .....~~ ,,- ~.. "'I 'to 'l""w~\\\\ ",It".....",' llJl~ Chairman, Board of New Hanover County Water and Sewer District ATTEST. ~\/~ / Cle k to the Board - (j~. , " ~ G 0 :~ r t\ G E ~ - -. "'. '-" " 11 D V E ~ IF! E D 2. 0 5 S o 611 :' ~, ; :J I ~:: ~; r; T :; ~ r" (' ; ~ r ~;\ C? C' ~.: ~ s ;-"/ \, ,\ Ii 0'1' E;; (;0. Ii C I",^. It!! 16 Dn 3 13 ..... ) u _ l_ 1 FIRST AMENDMENT TO LEASE AGREEMENT By and Between .. 000:132 COUNTY OF NEW HANOVER, NORTH CAROLINA and NEW HANOVER REGIONAL MEDICAL CENTER Dated as of June 15, 1996 '~/n ++ ~1IIf)+I~,/ RETURNED TO .-/'-V 7& s--0<6'~) BOOK pj.,G E 205 8 o 6 l~RST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT dated as of June 15, 1996 (this "Amendment"), is made by and between the County of New Hanover, North Carolina, a political subdivision of the State of North Carolina (the "County"), and New Hanover Regional Medical Cente~, a nonprofit corporation organized and existing under the General Statutes of North Carolina (the "corporation") and amends the LEASE AGREEMENT dated as of October 1, 1993 (the "Lease") by and between the County and the corporation, WIT N E SSE T H: WHEREAS, the County proposes to undertake the acquisition, construction, renovation, equipping and expansion of certain improvements and additions to the Existing Facilities, including (i) the construction of a new Oncology Center Clinical Laboratory and Outpatient Clinic building with a connecting concourse to the Existing Facilities, (ii) the renovation and addition of public areas, (iii) the renovation of the Emergency Department and the Pediatrics unit, (iv) the purchase of furnishings to be added to the new building, (v) the upgrade and installation of communication and information services, (vi) the construction of a Cardiac Surgery Recovery Unit and (vii) the relocation of the heliport and the construction of the East Parking Area (the "Project"); and WHEREAS, under The State and Local Government Revenue Bond Act, Article 5, as amended, of Chapter 159 of the General Statutes of North Carolina, the County is authorized and empowered to issue revenue bonds to pay the cost of the Project; and WHEREAS, the County adopted a Bond Order on October 6, 1993 and a Series Resolution on October 6, 1993 pursuant to which it issued $29,535,000 of its Hospital Revenue Bonds (New Hanover Regional Medical Center Project) Series 1993 in order to finance, among other things, a portion of the cost of a project described in such Series Resolution; and WHEREAS, the County has determined that it is consistent with the purposes of the Act and in the public interest (a) to issue revenue bonds of the County in the aggregate principal amount not exceeding $66,000,000, designated Hospital Revenue Bonds (New Hanover Regional Medical Center Project), Series 1996 pursuant to the Bond Order and a series Resolution adopted by the County on May 20, 1996 and amended on June 17, 1996 for the purpose of providing funds, together with other available funds, to pay the cost of the Project and to enter into this Amendment; and 1 BOOt:; P/,GE WHEREAS, tpR @~cutio~~~ delivery of this Amendment have been duly authGr~z~~by th~~o~niy and the Corporation; and WHEREAS, all acts, notices and things required by the Constitution and laws of the State and the Bylaws of the Corporation to happen, exist and be performed precedent to and in the execution and delivery of this Amendment have happened, exist and have been performed as so required, in order to make this Amendment a valid and binding agreement in accordance with its terms; and WHEREAS, each of the parties hereto represents that it is fully authorized to enter into and perform and fulfill the obligations imposed upon it under this Amendment and the Lease, and the parties are now prepared to execute and deliver this Amendment; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration paid by each of the parties to the other, the receipt of which is hereby acknowledged, the County and the Corporation hereby agree as follows: ARTICLE I Definitions SECTION 1.01. Definitions. Unless elsewhere defined in this Amendment, all capitalized terms used in this Amendment shall have the meanings ascribed thereto in the Lease. The following terms shall have the following meanings: "Bond Insurer" means Bond Insurer as defined in Section 101 of the Series 1993 Resolution or Section 101 of the Series 1996 Resolution, as applicable. "Bond Year" means Bond Year as defined in Section 101 of the Series 1993 Resolution or Section 101 of the Series 1996 Resolution, as applicable. "Insurer Default" means an Insurer Default as defined in Section 101 of the Series 1993 Resolution or Section 101 of the Series 1996 Resolution, as applicable. "Series 1996 Bonds" means the Bonds so designated by and issued under the Bond Order and the Series 1996 Resolution. "Series 1996 Resolution" means the Series Resolution adopted by the Board of Commissioners of the County on May 20, 1996 and amended on June 17, 1996. 2 BOOK ~^GE ARTICLE II 2 058 061 ~ Representations SECTION 2.01. Representations bv the County. The County represents that it has the power to enter into the transactions contemplated by this Amendment and to carry out its obligations hereunder; and that by proper action of its Board of commissioners, the County has been duly authori~ed to execute and deliver this Amendment. The County further represents that it proposes to issue the Series 1996 Bonds which will mature, bear interest, be redeemable and have the other terms and provisions set forth in the Bond Order and the Series 1996 Resolution, pursuant to which its interest in the Net Revenues derived by it from the Health Care System will be pledged to the Trustee as security for paYment of the principal of, the premium, if any, and the interest on all Bonds and any other Long-Term Indebtedness secured pari passu therewith. SECTION 2.02. Representations bv the Corporation. The Corporation represents that it is a nonsectarian, nonprofit corporation, no part of the net earnings of which inures to the benefit of any private member or individual; that it has authority to lease the Existing Facilities and operate the Health Care System, and, by proper corporate action, has been duly authorized to execute and deliver this Amendment; and that the execution and delivery of this Amendment, its consummation of the transactions contemplated hereby and fulfillment of or compliance with the terms and conditions of this Amendment, do not conflict with or result in a breach of any of the terms, conditions or provisions of any corporate restriction, or any agreement or instrument to which the Corporation is now a party or by which it is bound, and do not constitute a default under any of the foregoing, or result in the creation or imposition of any lien or encumbrance of any nature whatsoever upon any of the property or assets of the Corporation under the terms of any instrument or agreement (other than this Amendment and the Bond Order) . ARTICLE III AMENDMENTS TO LEASE SECTION 3.01. Amendment to Section 4.18 of the Lease. Section 4.18 of the Lease is hereby amended in its entirety to provide as follows: SECTION 4.18. Debt Service Coveraqe Ratio. (a) The Corporation agrees that if the Long-Term Debt Service Coverage Ratio for any Fiscal Year shall be less than 1.75, as soon as practicable after the end of such Fiscal Year: (i) the Corporation shall fund, by means of a cash deposit, letter of credit or other method acceptable to the Bond Insurer for the Series 3 BOOli~ P/.G E 205 8 0 615 1993 Bonds (so long as an Insurer Defqult shall not exist), a Debt Service Reserve Fund to be held by the Trustee pursuant to the Series 1993 Resolution for the exclusive benefit of the Holders of the Series 1993 Bonds in an amount equal to the Debt Service Reserve Fund Requirement for the Series 1993 Bonds; and (ii) the Corporation shall fund, by means of a cash deposit, letter of credit or other method acceptable to the Bond Insurer for the Series 1996 Bonds (so long as an Insurer Default shall not exist), a Debt Service Reserve Fund to be held by the Trustee pursuant to the Series 1996 Resolution for the exclusive benefit of the Holders of the Series 1996 Bonds in an amount equal to the Debt Service Reserve Fund Requirement for the Series 1996 Bonds. The Debt Service Reserve Fund Requirement for a particular Series of Bonds shall be equal to the lesser of (i) maximum annual debt service on such Series for any Bond Year and (ii) 125% of the average annual debt service on such Series for any Bond Year. In the event that the Corporation shall be required to fund Debt Service Reserve Funds pursuant to the provisions described above, the Bond Order, the Series 1993 Resolution, the Series 1996 Resolution and the Lease shall be amended without the consent of or notice to any of the Holders in order to make any changes therein that are necessary in connection with the establishment and maintenance of such Debt Service Reserve Funds. (b) If the Debt Service Reserve Funds shall be funded pursuant to paragraph (a) above and thereafter the covenant contained therein is satisfied by the Corporation for two consecutive Fiscal Years after the Fiscal Year for which the covenant was not satisfied, then the Debt Service Reserve Funds shall no longer be required to be funded and any funds contained therein shall be released to the Corporation. SECTION 3.02. Additions of Sections 4.19 and 4.20 to the Lease. Article IV of the Lease is hereby amended by adding the following Sections 4.19 and 4.20 at the end thereof: SECTION 4.19. Secondary Market Disclosure. The Corporation agrees, for the benefit of the beneficial owners of the Series 1996 Bonds, to provide: (a) by not later than seven months after the end of each Fiscal Year of the Corporation, beginning with the Fiscal Year ending September 30, 1996, to each nationally recognized municipal securities information repository ("NRMSIR") and to the state information depository for the State of North Carolina ("SID"), if any, the audited financial statements of the Corporation for such Fiscal Year, if available, prepared in accordance with section 159-39 of the 4 BOOK PAGE 2 0 5 8 0 6 1 6 General statutes of North Carolina, as amended from time to time or any successor statute, or if such audited financial statements are not available by seven months after the end of such Fiscal Year, the unaudited financial statements of the Corporation for such Fiscal Year to be replaced subsequently by the audited financial statements of the Corporation to be delivered within 15 days after such audited financial statements become available for distribution; (b) by not later than seven months after the" end of each Fiscal Year, beginning with the Fiscal Year ending September 30, 1996, to each NRMSIR, and to the SID, if any, the financial and statistical data as of a date not earlier than the end of the precedtng Fiscal Year for the type of information included under the following headings in the Official Statement dated on or about June 26, 1996 relating to the Series 1996 Bonds, "Utilization," "Licensed Bed Capacity," "Service Area," "Analysis of Discharges by Specialty and. "Third- Party Reimbursement and Sources of Payment," to the extent such items are not included in the audited financial statements referred to in (a) above; (c) in a timely manner, to each NRMSIR or ~o the Municipal Securities Rulemaking Board ("MSRB"), and to the SID, if any, notice of any of the following events with respect to the Series 1996 Bonds, if material: (I) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on any debt service reserves reflecting financial difficulties; (4) unscheduled draws on any credit enhancements reflecting financial difficulties; (5) substitution of any credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax-exempt status of the security; (7) modification to the rights of security holders; (8) bond calls; 5 BOOK 205 8 PAGE o 6 1 7 (9) defeasances; (10) release, substitution or sale of any property securing repayment of the securities; and (11) rating changes; and (d) in a timely manner, to each NRMSIR or to the MSRB, and to the SID, if any notice of a failure of the Corporation to provide required annual financial information described in (a) or (b) above on or before the date specified. In the event that the Corporation.fails to comply with the undertakings described above, any beneficial owner of the Series 1996 Bonds then outstanding may take action to protect and enforce the rights of all beneficial owners with respect to such undertakings, including an action for specific performance; provided that failure to comply with such undertakings shall not be an event of default under the Lease and shall not result in any acceleration of payment of the Series 1996 Bonds. All actions shall be instituted, had and maintained in the manner provided in this paragraph for the benefit of all beneficial owners of the Series 1996 Bonds. The Corporation reserves the right to modify from time to time the information to be provided to the extent necessary or appropriate in the judgment of the corporation, provided that: (a) any such modification may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, composition, nature or status of the Corporation; (b) the information to be provided, as modified, would have complied with the requirements of Rule 15c2-12 issued under the Securities Exchange Act of 1934 ("Rule 15c2-12") as .of the date of the Official Statement, after taking into account any amendments or interpretations of Rule 15c2-12, as well as any changes in circumstances; and (c) any such modification does not materially impair the interests of the beneficial owners of the Series 1996 Bonds, as determined either by parties unaffiliated with the Corporation (such as bond counsel), or by the approving vote of the registered owners of a 6 BOO~ P~l 205 8 o 6 1 8 majority in principal amount of the Series 1996 Bonds then outstanding pursuant to the terms of the Bond Order and the Series 1996 Resolution as they may be amended from time to time. Any annual financial information containing the modified operating data or financial information is required to explain, in narrative form, the reasons for the amendments and the impact of the change in the type of operating data or financial information being provided. The undertaking described in this Section will terminate upon payment, or provision of having been made for payment in a manner consistent with Rule 15c2-12, in full of the principal of and interest on all of the Series 1996 Bonds. SECTION 4.20. Bond Insurer to Receive Secondarv Market Disclosure. The Corporation agrees that any information or notice provided to any NRMSIR or SID pursuant to section 4.19 hereof shall be provided promptly to the Bond Insurer. SECTION 3.03. Amendment to Section 12.03(a) (vi) of the Lease. section 12.03(a) (vi) of the Lease is hereby amended in its entirety to provide as follows: (vi) make such changes to the terms of this Lease as may be necessary to enable the County to issue tax-exempt Bonds at a future date so long as such changes do not adversely affect the ability of the Corporation to pay the principal of and the interest on any Series of Bonds; or SECTION 3.04 Amendments to Sections 12.09 and 12.10 of the Lease. Sections 12.09 and 12.10 of the Lease are hereby amended in their entirety to provide as follows: SECTION 12.09. Arbitraqe. The County and the Corporation shall take no action, and shall not approve any action of, or the making of any investment or use of the proceeds of any Series of Bonds which were issued as tax-exempt bonds, by the Trustee that would cause such Series to be "arbitrage bonds" within the meaning of Section 148 of the Code and the regulations thereunder as such maybe applicable to such Series at the time of such action, investment or use. SECTION 12.10. Exclusion From Gross Income Covenant. The Corporation covenants that it will not take any action which will, or fail to take any action which failure will, cause interest on any series of Bonds which were issued as tax-exempt bonds to become 7 205 8 o D 1 9 includable in the gross income of the Holders for federal income tax purposes pursuant to the provisions of the Code and regulations promulgated thereunder. SECTION 3.05 Amendment to Exhibit B of the Lease. Exhibit B of the Lease is hereby amended in its entirety to provide as follows: 8 - , BOOK PAGE ? 058 o 620 EXHIBIT B DESCRIPTION OF THE PROJECT The Project financed with the proceeds of the Series 1993 Bonds consists of (i) constructing and equipping an approximately 67,340 square foot rehabilitation hospital, (ii) constructing an approximately 465-space parking garage, (iii) renovating and equipping the hospital power plant, (iv) renovating and expanding the hospital telecommunications system, (vi) renovating and expanding a cardiac recovery unit and (vii) acquiring capital equipment for hospital use at New Hanover Regional Medical Center, 2131 South 17th Street, Wilmington, North Carolina 28402. The Project financed with the proceeds of the Series 1996 Bonds consists of (i) the construction of a new Oncology Center Clinical Laboratory and outpatient Clinic building with a connecting concourse to the Existing Facilities, (ii) the renovation and addition of public areas, (iii) the renovation of the Emergency Department and the Pediatrics unit, (iv) the purchase of furnishings to be added to the new building, (v) the upgrade and installation of communication and information services, (vi) the construction of a Cardiac Surgery Recovery Unit and (vii) the relocation of the heliport and the construction of the East Parking Area. 9 GCO~ PhGE 205 8 062 1 ARTICLE IV Miscellaneous SECTION 4.01. Multiple Counterparts. This Amendment may be executed in multiple counterparts, each of which shall be regarded for all purposes as an original, constituting but one and the same instrument. SECTION 4.02. Severability. If anyone or more of the covenants, agreements or provisions of this Amendment shall be determined by a court of competent jurisdiction to be invalid, the invalidity of such covenants, agreements and provisions shall in no way affect the validity or effectiveness of the remainder of this Amendment or the Lease, as amended hereby, and this Amendment and the Lease, as amended hereby, shall continue in force to the fullest extent permitted by law. SECTION 4.03. Recordation of Amendment. The Corporation covenants that it will cause this Amendment or a memorandum thereof to be recorded and filed in the office of the New Hanover County Registry of Deeds. SECTION 4.04. State Law Controllinq. This Amendment shall be construed and enforced in accordance with the laws of . the State of North Carolina. SECTION 4.05. Effective Date of This Amendment. Notwithstanding that this Amendment is dated as of June 15, 1996, this Amendment shall take effect when it is fully executed and has been delivered to the parties hereto contemporaneously with the delivery of and payment for the Series 1996 Bonds, and no obligation shall be imposed on the Corporation prior to the effective date of this Lease. SECTION 4.06. Extension of Term. The term of the Lease shall be extended so that it terminates on the fifth anniversary of the effective date of this Amendment as set forth in Section 4.05 hereof. All other provisions of Section 3.02 of the Lease, including, without limitation, those regarding renewal of the Lease for additional' terms, remain unchanged. 10 ,n " ...., '..i V 1\ Pi-.GE 205 8 062 2 IN WITNESS WHEREOF, the County of New Hanover has caused these presents to be signed in its name and on its behalf by the Chairman of its Board of Commissioners and its official seal to be hereunto affixed and attested by the Clerk to said Board, thereunto duly authorized; and New Hanover Regional Medical Center has caused these presents to be signed in its name and on its behalf by its President and its corporate seal to be hereunto affixed and attested by its Secretary, all as of the 15th day of June, 1996. COUNTY OF NEW HANOVER, NORTH CAROLINA By1?JJ2M) Chairman of the Board of Commissioners erk to th Board f Commissioners JI/I,\~J.fJ. "..,~-.h""1 ~ "'-' l!\ l IJII ...,,,~~\~t ~ '~".:J '............,J.. oi" ,..." ",-~ .......0 'f .~" ":~. ..,./ "jI'tl .. .;.:,..;,. :~.. .0 'r ";.- .#'.. ~ "(,9 .. ..,..~~' f. (." ... ..~;r . ..~~. ~L"a\'''''' -: ~.... ;;~// V."i'.w .. ~-~ .~:\~:; ~.' ~ - '".'0 ,,'I.... ~~ l\~., ._. ~..~ alf.". - z:;: 0 ",\II! ~.-J. . ,.c<-.'''o..... t:,' ~. ,g . I!;"~'!P" ~ '~g ;l>~:.;..." ~ ....{.......,-.@. c ,jL~~.I.......~_..::t .,"c-. ,'. ~ ~.,<?..'t ..:~ ~'.' Co . ;'7. ,d~?i. ~ .;~~ ~:~ 0 ~. .to. .' _ ..'. ".. ~f"""" ~~ <'1\.l!: o~ "C,; J ..-;.::. ... .~~ .;"..... "0 ;~~ / /,Fl $....- :w.<:L~ ":~\) O....,,~.,oo"~~l' ..<4' *0.-.0.. ~~. '<({!,1PA."I<.)1 ."~ '1P.W ,~ . '. ~1 ~~'iY .,,~ I '::i~~':f"e~' /i ~ .JI(r'- 'to,. ." c::> , .' -, ) {.~,?%.ut.- i:. Y!-E; Secretary NEW HANOVER REGIONAL MEDICAL CENTER By: 11 ~ ACKNOWLEDGMENT OF EXECUTION ON BEHALF OF THEa -C01,pN\ TY IJU; PAGE 205 8 062 3 STATE OF NEW YORK ss. : COUNTY OF NEW YORK Before me, the undersigned, a Notary Public in and for said County and State on this 11th day of July, 1996, personally appeared ROBERT G. GREER, being and to me known to be the Chairman of the Board of Commissioners for the County of New Hanover, who being by me duly sworn, says that he resides at 1218 Country Club Road, Wilmington, North Carolina 28403, that he knows the seal of said County and that by authority duly given by, and as the act of, said County, the foregoing and annexed First Amendment to Lease Agreement, dated as of June 15, 1996, was signed by him as said Chairman on behalf of said County, and the seal of said County affixed thereto, and personally appeared Lucie F. Harrell, being to me known to be the Clerk to the Board of Commissioners of said County, who, being by me duly sworn, says that she resides at 338 Island Creek Drive, Wilmington, North Carolina 28405, that she knows the seal of said County and that by authority duly given by said County she impressed the official seal of said county upon the foregoing and annexed First Amendment to Lease Agreement in execution thereof for and on behalf of said County and that she attested the same as said Clerk to the Board of Commissioners by affixing her signature thereon in attestation thereof and said Chairman and Clerk to the Board of Commissioners further acknowledged the foregoing and annexed Lease Agreement to be the act and deed of the County of New Hanover, North Carolina. WITNESS my hand and official seal in the County and State last aforesaid this 11th of July, 1996. STEVEN M SARGENT NOlarYNPUbllC Srate of New York .oOlSA5049474 r Q~ualifled In Kin s _"'llmls__n,\, 11:: l' Ioib..., 18. 1 997 [SEAL] My commission expires: 12 :: ACKNOWLEDGMENT OF EXECUTION ON BEHALF OF THE CORPOF~::?1:~IpN Pio.GE &JJU~~ 205 8 062 Y STATE OF NEW YORK ss. : COUNTY OF NEW YORK Before me, the undersigned, a Notary Public in and for said County and State on this 11th day of July, 1996, personally appeared Jim R. Hobbs, being and to me known to be the President of New Hanover Regional Medical Center, who being by me duly sworn, says that he resides at 4300 Forwalt Place, Wil~ington, North Carolina, 28409, that he knows the seal of said Corporation and that by authority duly given by, and as the act of, said Corporation, the foregoing and annexed First Amendment to Lease Agreement, dated as of June 15, 1996, was signed by him as said President on behalf of said Corporation, and the seal of said Corporation affixed thereto, and personally appeared Luther Brown, being to me known to be the Secretary of said Corporation, who, being by me duly sworn, says that he resides at 1944 Brookhaven Road, Wilmington, North Carolina, 28403, that he knows the seal of said Corporation and that by authority duly given by said Corporation he impressed the corporate seal of said Corporation upon the foregoing and annexed First Amendment to Lease Agreement in execution thereof for and on behalf of said Corporation and that he attested the same as said Secretary by affixing his signature thereon in attestation thereof and said President and Secretary further acknowledged the foregoing and annexed First Amendment to Lease Agreement to be the act and deed of the New Hanover Regional Medical Center. WITNESS my hand and corporate seal in the County and State last aforesaid this 11th day of July, 1996. STEVENM SARGENT Notary Public. State of New York No 01 SA5049474 Qualified in Kings County Commission Expires September 18. 1997 rl1: 1PPUbliC [SEAL] M~ STATE OF NORTH CAROLINA New Hanover County The Foregoing/ Annexed Certificate(s) of