Surry County Board of Commissioners Meeting of January 2, 2007

Transcription

1 8532 Surry County Board of Commissioners Meeting of January 2, 2007 The Surry County Board of Commissioners met in regular session at 6:00 p.m. on January 2, The meeting was held in the County Commissioners Meeting Room, Surry County Government Center, Dobson, North Carolina. Board members present for the meeting were Chairman Craig Hunter, Commissioner Bill Hamlin, Commissioner Jim Harrell, Jr. and Commissioner Jimmy Miller. Vice-Chairman Paul Johnson was unable to attend due to illness. Others present for the meeting, at various times, were: Macon C. Sammons, Jr., County Manager Conchita Atkins, Clerk to the Board Edwin Woltz, County Attorney Sandy Snow, Human Resources Officer John Shelton, Emergency Services Director Sheriff Graham Atkinson News Media Other Citizens _ Chairman Craig Hunter called the meeting to order. Chairman Craig Hunter delivered the invocation and led the Pledge of Allegiance. _ Chairman Hunter requested the Board to consider the minutes of the December 18, 2006 meeting. Upon motion of Commissioner Harrell, seconded by Commissioner Hamlin, the Board voted unanimously to approve the minutes. Chairman Hunter requested that the Board consider the consent agenda. Upon motion of Commissioner Harrell, seconded by Commissioner Miller, the Board voted unanimously to approve the following consent agenda items: Requests from the Assistant County Manager for Budget and Finance: 1. Approve the following Capital Project Ordinance for the Mount Airy QZAB: CAPITAL PROJECT ORDINANCE MOUNT AIRY HIGH SCHOOL-SECOND QZAB BE IT ORDAINED by the Board of Commissioners of the County of Surry that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, this capital project ordinance is hereby adopted: SECTION 1: The project authorized by this ordinance is the QZAB renovations for Mount Airy High School

2 Meeting of January 2, 2007 Continued 8533 SECTION 2: SECTION 3: The offices of this governmental unit are hereby directed to proceed with this capital project within the guidelines set by the budget contained herein. The costs of the project are: A. Construction Cost (Projected) $1,710, B. Engineering and Architect Fees 90, C. Other fees D. Contingency Cost Total Project Cost $1,800, SECTION 4: The following financing sources are anticipated to be available to complete this project: Installment Financing $1,800, TOTAL $1,800, SECTION 5: SECTION 6: SECTION 7: SECTION 8: The Finance Officer is directed to report quarterly to the Board of Commissioners on the financial status of the project. The Budget Officer is directed to include an analysis of past and future costs and revenue for this capital project in each annual budget submitted to the Board of Commissioners for as long as this ordinance shall remain in effect. Any balance of appropriated funds which are unexpected at the conclusion of this project shall be reserved by the Board of Commissioners for future schools buildings project. Copies of this capital project ordinance shall be made available to the Budget Officer and the Finance Officer for direction in carrying out this project. 2. Approve budget change no. 11 as follows: The Board of County Commissioners approved an amendment to the FY Budget Ordinance at their meeting on January 2, ACCOUNT PREVIOUS REVISED CODE DESCRIPTION AMOUNT CHANGE AMOUNT SCHOOLS CAPITAL PROJECTS FUND EXPENDITURES Mt. Airy High QZAB Proj. (New) Professional Services 0 90,000 90, Project Construction 0 1,710,000 1,710,000 Increase departmental 0 1,800,000 1,800,000 total.

3 Meeting of January 2, 2007 Continued 8534 REVENUE Trans Bond Proc-MA High 0 1,800,000 1,800,000 Increase fund totals. 7,314,829 1,800,000 9,114,829 SCHOOLS CAPITAL PROJECTS RESERVE FUND EXPENDITURES Trans to CP-MA High QZAB (New) 0 1,800,000 1,800,000 REVENUE Proceeds of QZAB Financing 0 1,800,000 1,800,000 Increase fund totals. 6,427,108 1,800,000 8,227,108 Requests from the Human Resources Officer: 1. Approve leave without pay for a Parks, Recreation and Maintenance employee from December 20, 2006 through January 4, Approve the following resolution honoring retired Sheriff Connie R. Watson: RESOLUTION WHEREAS, Connie R. Watson has faithfully served the citizens of Surry County, serving as Sheriff from December 5, 1994 until his retirement on December 4, 2006; and WHEREAS, during his tenure, Sheriff Connie R. Watson led by example, bringing a high level of integrity and professionalism to the Sheriff s Office of Surry County; and WHEREAS, under the guidance and leadership of Connie R. Watson, the Sheriff s Office has experienced growth and advancement as demonstrated in the areas of staffing, technology, and training; and WHEREAS, Sheriff Connie R. Watson has earned the admiration and respect of his staff, colleagues, and the citizens he has served, not only in Surry County, but throughout the State of North Carolina, as he has dedicated his career to diligently protecting our citizens and making Surry County a safer place to live; and NOW, THEREFORE, BE IT RESOLVED that the Surry County Board of Commissioners wishes to publicly commend Sheriff Connie R. Watson for his service to the citizens of Surry County and wishes to express its appreciation for his many years of dedication to law enforcement; and BE IT FURTHER RESOLVED that the Board extends to Connie R. Watson its best wishes for many years of happiness during his retirement. _ Chairman Hunter then declared the meeting to be an open forum and invited members of the audience to address the Board on any matters of civic concern. Chairman Hunter addressed an article in the Mount Airy News concerning a recent closed session meeting and stated that the Board is always careful to comply with the open

4 Meeting of January 2, 2007 Continued 8535 meetings law. Chairman Hunter reassured the Board and the public that the Board and staff intends to carefully comply with the open meetings law. There being no additional comments, Chairman Hunter closed the open forum, and the Board resumed regular business. John Shelton, Emergency Services Director, presented a power point presentation on GIS and disaster preparedness and how each agency works together during a disaster. Mr. Shelton highlighted how GIS mapping can show high risk populations, crime scenes, fuel storage units, natural gas lines, cell towers and other informational maps. The County Manager addressed the Board regarding a request from the North Carolina Association of County Commissioners for the Board to appoint a commissioner as its Legislative Liaison. Mr. Sammons stated that each county s liaison will serve as a conduit of information between the Association, via the District 18 Director, and the local Board of Commissioners. It was the consensus of the Board for Commissioner Jim Harrell, Jr. to represent Surry County as its Legislative Liaison. The County Manager addressed the Board regarding a Fair Housing Plan for Scattered Site Community Development Block Grant and a resolution of commitment to further Fair Housing within the County of Surry, and policy documents concerning an Equal Employment and Procurement Plan and Local Economic Benefit for Low Income Persons. Upon motion of Commissioner Harrell, seconded by Commissioner Miller, the Board voted unanimously to approve the resolution and related policy documents. RESOLUTION OF COMMITMENT TO FURTHER FAIR HOUSING within the COUNTY OF SURRY CDBG# 05-C-1374 WHEREAS, the County of Surry are familiar with Title VIII, Civil Rights Act of 195/68, amended by the Housing and Community Development Act of 1974; and WHEREAS, the County of Surry are aware that they are obligated to be in compliance with the State Fair Housing Act (Under Chapter 41A of the General Statutes of North Carolina); and WHEREAS, the County of Surry will administer programs and activities relating to housing and urban development in a manner to affirmatively further Fair Housing; NOW, THEREFORE, LET IT BE RESOLVED, that the Surry County Board of Commissioners agree to commit to Fair Housing

5 Meeting of January 2, 2007 Continued 8536 within the County s jurisdiction and will substantially comply with all Federal, State and Local laws, rules, regulations, and ordinances applicable in their efforts to further fair housing within the County of Surry. BE IT FURHTER RESOLVED, that Macon C. Sammons, Jr., County Manager, is hereby appointed as the Fair Housing Officer for the duration of the Community Development Black Grant 05-C-1374 in order to provide counseling, and referral services to persons having complaints about housing discrimination and housing conditions within the County of Surry jurisdiction. Macon C. Sammons, Jr. is appointed to serve in the capacity of Fair Housing Officer through this grant project. The County Manager reminded the Board and citizens that the next Board of Commissioners meeting, January 16, 2007, will be held at the Cooperative Extension Office. The Cooperative Extension Office will present a power point presentation at 5:00, followed by dinner with the regular schedule business meeting to begin at 7:00 p.m. The County Manager stated that the County Attorney, Health Director, Animal Control Supervisor and he are working on Animal Control regulations and will continue to work on a recommended draft to bring the Board. The County Manager addressed a request from the Town of Dobson, Elkin and Pilot Mountain for a STEP Project Facilitator. The previous facilitator had resigned. The Towns requested that Chris Knopf, Planning Director, be the STEP Project Facilitator. It was the consensus of the Board for Chris Knopf to be the STEP Project Facilitator. The County Manager discussed a date change for the Elected Officials Roundtable. The Board discussed the date of February 6, 2007, with a backup date of January 29, The meeting will be held at Cedarbrook Country Club at 6:00 p.m. The County Manager reminded the Board of the Legislative Breakfast at Elkin High School on January 10, The breakfast will begin at 7:30 a.m. Chairman Hunter informed the audience that it was time for the special recognition portion of the agenda. The following individual was recognized. The Board of Commissioners recognized retired Sheriff Connie R. Watson for his many years of faithful service to Surry County. _ There was no further business to come before the Board.

6 Meeting of January 2, 2007 Continued 8537 _ Upon motion of Commissioner Harrell, seconded by Commissioner Hamlin, the Board voted unanimously to adjourn at 7:25 p.m. Conchita Atkins Clerk to the Board

7 8538 Surry County Board of Commissioners Meeting of January 16, 2007 The Surry County Board of Commissioners met in regular session at 6:00 p.m. on January 16, The meeting was held at the Surry County Cooperative Extension Office, 210 North Main Street, Dobson, North Carolina. Board members present for the meeting were Chairman Craig Hunter, Vice-Chairman Paul Johnson, Commissioner Bill Hamlin, Commissioner Jim Harrell, Jr. and Commissioner Jimmy Miller. Others present for the meeting, at various times, were: Macon C. Sammons, Jr., County Manager Conchita Atkins, Clerk to the Board Edwin Woltz, County Attorney Betty Taylor, Assistant County Manager for Budget and Finance Chris Knopf, Planning Director Cathy Booker, Tax Administrator Tax Department Employees News Media Other Citizens _ Chairman Craig Hunter called the meeting to order. Commissioner Bill Hamlin delivered the invocation and led the Pledge of Allegiance. _ Chairman Hunter requested the Board to consider the minutes of the January 2, 2007 meeting. Upon motion of Commissioner Harrell, seconded by Commissioner Miller, the Board voted unanimously to approve the minutes. Chairman Hunter requested that the Board consider the consent agenda. Upon motion of Commissioner Johnson, seconded by Commissioner Harrell, the Board voted unanimously to approve the following consent agenda items: Requests by the County Manager: 1. Approve the purchase of an overhead door, in the amount of $9,893, at the Human Services Center Evidence Storage Building. 2. Approve the following from the Tax Department: Total releases for the month ending in the amount of $9, Total refunds for the month ending in the amount of $7, Total real and personal property discoveries in the month ending in the amount of $14, Total motor vehicle discoveries for the month ending in the amount of $2, Collect October 2006 motor vehicle renewals in the amount of $313,

8 Meeting of January 16, 2007 Continued 8539 Request from the Assistant County Manager for Budget and Finance: 1. Approve Public Works to purchase a chain-link fence in the amount of $11,076. Requests from the Human Resources Officer: 1. Approve leave without pay for a Health and Nutrition Center employee from January 12, 2007 through July 11, Approve leave without pay for a Health and Nutrition Center employee from January 2, 2007 through January 31, Approve leave without pay for a Parks, Recreation and Maintenance employee from January 5, 2007 through April 15, _ Chairman Hunter then declared the meeting to be an open forum and invited members of the audience to address the Board on any matters of civic concern. Chairman Hunter stated that he had received a letter from Macon County regarding formal action taken by Macon County to stop implementation of Senate Bill 1126 Article 25 A Section (D) Subsistence License Wavier. Chairman Hunter thanked the Cooperative Extension Office for hosting the Board of Commissioners meeting and for the delicious dinner. Commissioner Miller stated that Commissioner Hamlin, County Manager Macon C. Sammons, Jr. and he had attended the North Carolina Association of County Commissioners Legislative Goals Conference on January 11 th and 12 th. There being no additional comments, Chairman Hunter closed the open forum, and the Board resumed regular business. Chairman Hunter then declared the meeting to be a public hearing for the purpose of hearing comments on zoning application ZCR993. The parcel site is 0.20 acres and 0.28 acres of tax parcels and The property owner is Ronald C. Spicer and Jimmy and Patsy Haynes Trustees. The property is currently zoned RA. The petition is to rezone the property to HB. Chris Knopf, Planning Director, presented facts pertaining to the rezoning and stated that the Planning Board recommends approval of the petition. Chairman Hunter asked for comments from the public. No one spoke on the rezoning. Chairman Hunter then declared the public hearing closed and asked the Board if they wished to take any action.

9 Meeting of January 16, 2007 Continued 8540 Upon motion of Commissioner Johnson, seconded by Commissioner Miller, the Board voted unanimously to approve the rezoning as presented by the Planning Director. Chris Knopf, Planning Director, updated the Board on various water and sewer projects. Mr. Knopf requested approval to apply and accept, if awarded, a CDBG Grant. The grant would be used to assist homeowners in the Flat Rock/Bannertown service area to pay for the cost of making connections to water and/or sewer. The grant is through the North Carolina Division of Community Assistance. It was the consensus of the Board for the Planning Director to apply for the grant. Upon motion of Commissioner Hamlin, seconded by Commissioner Miller, the Board voted unanimously to recess as the Board of County Commissioners and reconvene as the Flat Rock/Bannertown Water and Sewer District Board of Directors. District Board Member Hunter then declared the meeting to be a public hearing for the purpose of hearing comments on the proposed annexation of three parcels into the Flat Rock/Bannertown Water and Sewer District. Chris Knopf, Planning Director, discussed requests for annexation of three parcels into the Flat Rock/Bannertown Water and Sewer District. Mr. Knopf stated that the following three tax parcel petitions have been filed: Chairman Hunter asked for comments from the public. No one spoke on the annexation. Upon motion of District Board Member Johnson, seconded by District Board Member Harrell, the Flat Rock/Bannertown Water and Sewer District Board voted unanimously to approve the three annexation requests. The Board discussed information from the City of Mount Airy regarding a number of water and/or sewer customers within the Flat Rock/Bannertown Water and Sewer District area that were provided with service by the City, either prior to or following creation of the District. Upon motion of District Board Member Harrell, seconded by District Board Member Johnson, the Flat Rock/Bannertown Water and Sewer District Board voted unanimously for the County Manager, in behalf of the Flat Rock/Bannertown Water and Sewer District, to request that all existing customers located within the District area be transferred to the Flat Rock/Bannertown Water and Sewer District by the City of Mount Airy. The Flat Rock/Bannertown Water and Sewer District Board discussed working toward Phase II of the Flat Rock/Bannertown Water and Sewer Project.

10 Meeting of January 16, 2007 Continued 8541 Upon motion of District Board Member Johnson, seconded by District Board Member Miller, the Board unanimously to adjourn as the Flat Rock/Bannertown Water and Sewer District Board of Directors and reconvene as the Surry County Board of Commissioners. Dr. Barry Shepherd, Elkin City Schools Superintendent, addressed the Board regarding a funding request for Elkin High School Phase I (b) construction needs. Dr. Shepherd stated that Phase I (b) consist of a three-story stair tower and restroom segment that must be constructed prior to the demolition and reconstruction of the 1935 structure in Phase II. Dr. Shepherd stated that the Elkin Board of Education approved the allocation of $161,000 from supplemental tax and out of district tuition proceeds and that the Board of Education would like to use their firstyear lottery proceeds. Dr. Shepherd requested $600,000 from the Board of Commissioners for completion of the project. The Board discussed funding for the project. Reservations were expressed about using first-year lottery proceeds as the source of funds for this work, due to uncertainty about future implications and allocations. Upon motion of Commissioner Harrell, seconded by Commissioner Johnson, the Board voted unanimously to allow the Elkin City Schools to proceed with Phase I (b) construction for the stair tower; accept the allocation of $161,000 from the Elkin City Schools and with the County Manager and the Assistant County Manager for Budget and Finance working with the Elkin City Schools on the remainder of funding and bring back to the Board at a future meeting. Chairman Hunter informed the audience that it was time for the special recognition portion of the agenda. The following individuals were recognized: Brenda Davis for winning the Prestigious Plumb Bob Award. Will Moore for receiving the 2006 North Carolina Property Mappers Association Academic Achievement Award and obtaining the North Carolina Property Mappers mapper certification. The County Manager presented information on the Nutrition Standards for Elementary Schools. The Surry County Board of Education requested the Board adopt a resolution supporting the Nutrition Standards for Elementary Schools and supporting the North Carolina State Board of Education s proposed budget request to provide $25 per pupil to enable local school districts to implement Nutrition Standards in elementary schools throughout the state.

11 Meeting of January 16, 2007 Continued 8542 Upon motion of Commissioner Miller, seconded by Commissioner Johnson, the Board voted unanimously to support the following resolution: NORTH CAROLINA PUBLIC SCHOOLS NUTRITION STANDARDS RESOLUTION WHEREAS, the National School Lunch and Breakfast Programs provide healthy meals to all North Carolina students enabling them to be ready to learn, WHEREAS, one in five children ages 5-11 in North Carolina is overweight, WHEREAS, the prevalence of childhood obesity has nearly tripled for adolescents in the past two decades, WHEREAS, North Carolina is in the top 10 states in the United States for the incidence of hypertension and diabetes, WHEREAS, health care costs in North Carolina associated with obesity related medical expenses cost North Carolina taxpayers more than $2.1 billion a year, WHEREAS, the North Carolina General Assembly has legislated and the State Board of Education has adopted Nutrition Standards for Elementary Schools in North Carolina schools requiring increased fresh fruits, fresh vegetables and foods high in fiber in school meals offered to students, NOW, THEREFORE BE IT RESOLVED that the Surry County Board of Commissioners support the N.C. State Board of Education s proposed budget to provide $25 per pupil to enable local school districts to implement Nutrition Standards in elementary schools in the state. AND BE IT FURTHER RESOLVED that the $25 per elementary child be recurring funds. The County Manager addressed information from the Management Information Services Director on imaging solution, noting that funds are budgeted and bids are in hand. Brain Sharpe, Management Information Services Director, requested authorization in the amount of $45,373 for imaging solutions for the following departments: Sheriff s Office, Tax Department, Emergency Services, Inspections Department, and Cooperative Extension Services. Mr. Sharpe had conducted a bid process with three document imaging vendors Lanier, One Source Document Solutions and Image Now. Mr. Sharpe recommended Lanier as the vendor for the imagining based on security, administration, pricing, and the ease of use for the end user. Upon motion of Commissioner Harrell, seconded by Commissioner Hamlin, the Board voted unanimously to the purchase.

12 Meeting of January 16, 2007 Continued 8543 The County Manager presented the FY 08 Budget Calendar. Upon motion of Commissioner Harrell, seconded by Commissioner Johnson, the Board voted unanimously to adopt the calendar as presented by the County Manager. The Board addressed various topics to be discussed at a Planning Retreat to be scheduled in late February. The County Manager discussed the Go For The Green Program. Mr. Sammons stated that the program was in its third month and 84% of employees are enrolled; 11 departments have 100% employee participation, individuals are using the Primary Care Services, and 335 employees received the flu shot. The County Manager also gave a status report on a fitness facility usage form which is a component of the employee wellness program. The program will allow employees exercise and fitness at the fitness center at the Human Services Center. Each employee will be required to complete an orientation and demonstration program and a medical screening questionnaire. The County Manager reminded the Board of a Memorial Road Dedication on Sunday, February 4, 2007 at 2:00 p.m. at the East Surry High School. The County Manager stated that the design development phase for the One Stop Central Permitting/Health Clinic building is 100% complete. The Board discussed smoke free facilities. The County Attorney stated that the Health and Nutrition Center, through an agreement with the federal government, is supposed to disallow smoking in all of its facilities within 50 feet of the building. Upon motion of Commissioner Harrell, seconded by Commissioner Miller, the Board voted unanimously to approve the One Stop Central Permitting/Health and Nutrition Center, Government Center and the Human Services Building being smoke free. The policy will take place in 90 days, on April 16, The Board discussed the Tourism Initiative and the development of tourism resources. Upon motion of Commissioner Johnson, seconded by Commissioner Harrell, the Board voted unanimously to appoint Berti Leonardi to serve on the Appearance Commission representing the Rockford Township. Upon motion of Commissioner Johnson, seconded by Commissioner Harrell, the Board voted unanimously to

13 Meeting of January 16, 2007 Continued 8544 appoint Paulette Welborn to serve on the Appearance Commission representing the Long Hill Township. The County Attorney discussed the Pilot Mountain Middle School Auditorium property demolition and request for deed transfer. The Board discussed the request for revision of the deed from the Board of Education to the County of Surry. The Board also discussed the future use of the property following demolition of the structure. Upon motion of Commissioner Harrell, seconded by Commissioner Johnson, the Board voted unanimously to allocate $5,000 to the Surry County Board of Education toward the purpose of removal of asbestos at the old Pilot Mountain Middle School Classroom Building and to assign the contract for remediation to the Surry County Board of Education. Upon motion of Commissioner Johnson, seconded by Commissioner Hamlin, the Board voted unanimously to go into closed session to discuss personnel and property matters. The Board came out of closed session and resumed regular business. Upon motion of Commissioner Johnson, seconded by Commissioner Hamlin, the Board voted unanimously to reappoint the Tax Administrator for a four-year term, effective July 1, Upon motion of Commissioner Johnson, seconded by Commissioner Hamlin, the Board voted unanimously to pay a lump-sum settlement for three workers compensation claims for employees with approved permanent partial disability ratings. Upon motion of Commissioner Harrell, seconded by Commissioner Hamlin, the Board voted unanimously to adjourn at 10:30 p.m. Conchita Atkins Clerk to the Board

14 8545 Surry County Board of Commissioners Meeting of February 5, 2007 The Surry County Board of Commissioners met in regular session at 6:00 p.m. on February 5, The meeting was held in the County Commissioners Meeting Room, Surry County Government Center, Dobson, North Carolina. Board members present for the meeting were Chairman Craig Hunter, Vice-Chairman Paul Johnson, Commissioner Bill Hamlin, Commissioner Jim Harrell, Jr. and Commissioner Jimmy Miller. Others present for the meeting, at various times, were: Macon C. Sammons, Jr., County Manager Conchita Atkins, Clerk to the Board Edwin Woltz, County Attorney Betty Taylor, Assistant County Manager for Budget and Finance Sandy Snow, Human Resources Officer Cathy Booker, Tax Administrator Jack Gardin, Water and Sewer Projects Coordinator Wayne Black, Social Services Director News Media Other Citizens _ Chairman Craig Hunter called the meeting to order. Commissioner Jim Harrell, Jr. delivered the invocation and led the Pledge of Allegiance. _ Chairman Hunter requested the Board to consider the minutes of the January 16, 2007 meeting. Upon motion of Commissioner Harrell, seconded by Commissioner Johnson, the Board voted unanimously to approve the minutes. Chairman Hunter requested that the Board consider the consent agenda. Upon motion of Commissioner Miller, seconded by Commissioner Harrell, the Board voted unanimously to approve the following consent agenda items: Request from the County Manager: 1. Approve an additional fees and fines schedule for Animal Control. A copy of the schedule is on file in the County Manager s Office. Requests from the Assistant County Manager for Budget and Finance: 1. Approve the Sheriff s Office to retire two canines and sell them to their handlers for a nominal $1.00 fee. 2. Approve Register of Deeds to purchase a new server. 3. Approve Emergency Services to apply for three $1, non-matching grants. The grants are from the following agencies: Wal-Mart Stores (2) and NC Chapter of the American Trauma Society. 4. Approve Management Information Services to purchase a replacement laptop.

15 Meeting of February 5, 2007 Continued Approve the following resolution regarding Flat Rock/Bannertown water and sewer: RESOLUTION PROVIDING FOR THE ISSUANCE OF $2,548,000 FLAT ROCK/BANNERTOWN WATER AND SEWER DISTRICT OF SURRY COUNTY BOND ANTICIPATION NOTES BE IT RESOLVED by the Board of Commissioners (the Board ) for the County of Surry, North Carolina (the County ), acting in its capacity as the governing body of the Flat Rock/Bannertown Water and Sewer District of Surry County (the District ): Section 1. The Board has determined and does hereby find, declare and represent: (a) That, pursuant to The Local Government Bond Act, codified as Article 4 of the North Carolina General Statutes, as amended (the Act ), an order (the Bond Order ) authorizing not exceeding $8,140,000 Water and Sewer Bonds of the District (the Bonds ) was adopted by the Board on July 21, 2003, which order was approved by the vote of a majority of the qualified voters of the District who voted thereon at a referendum duly called and held on October 7, 2003, and that the Bond Order is in full force and effect. (b) That the Board has determined that it is necessary to issue $2,548,000 of Water and Sewer Bond Anticipation Notes (the Notes ) of the District at this time in order to finance the cost of certain of the Improvements (as defined in the Bond Order). (c) That pursuant to Section 162A-90 of the North Carolina General Statutes, as amended, and Section of the Act, the District is authorized to issue bond anticipation notes in anticipation of the receipt of the proceeds of the sale of the Bonds, that none of the Bonds has been issued at this time, and the Board desires to provide for the issuance of the Notes in the principal amount of $2,548,000 in anticipation of the receipt of the proceeds of the sale of a like amount of the Bonds. (d) That upon the public sale of the Notes in the aggregate principal amount of $2,548,000, the net proceeds from the sale of the Notes will be delivered to the District and applied to the payment, or the reimbursement of the District for the prior payment, of a portion of the cost of the Improvements. (e) That the United States of America has agreed to purchase the Bonds when issued in the aggregate principal amount of $2,548,000 to evidence a loan from the United States of America to the District, all of the proceeds of which loan will be applied to the repayment of the principal amount of the Notes. (f) That the Local Government Commission of North Carolina has approved the application of the District for approval of the Bonds as required by N.C.G.S and the issuance and public sale of the Bonds. (g) That the Local Government Commission has approved the issuance and public sale of the Notes under the provisions of Article 9 of Chapter 159 of the General Statutes of North Carolina, as amended, at its meeting on August 5, 2003; (h) That (i) the District is a municipal corporation with the power to levy property taxes within the District in order to finance the operation and maintenance of the District s water and sewer system, (ii) the Notes are not

16 Meeting of February 5, 2007 Continued 8547 private-activity bonds, as defined in the Internal Revenue Code of 1986, as amended (the Code ), (iii) 95 percent or more of the net proceeds of the Notes are to be used for local governmental activities of the District, (iv) the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the District and all subordinate entities thereof during calendar year 2007 is not reasonably expected to exceed $5,000,000 (taking into account the provisions of Section 148 (f)(4)(d)(v)of the Code). Section 2. In anticipation of the receipt of the proceeds of the sale of a like amount of the Bonds, the issuance and sale, pursuant to the Act and Article 9 of Chapter 159 of the General Statutes of North Carolina, as amended, of $2,548,000 general obligation bond anticipation notes of the District is hereby authorized, which note shall be designated Water and Sewer Bond Anticipation Notes, shall be dated February 13, 2007, shall mature on September 26, 2007, without option of prior payment, and shall bear interest at a rate to be determined by the Local Government Commission at the time the Notes are sold, which interest shall be payable at the maturity of the Notes and shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. No interest coupons shall be attached to the Note. The principal of and the interest on the Notes shall be payable in any coin or currency of the United States of America which is legal tender for the payment of public and private debts on the respective dates of payment thereof. The Notes shall be issued by means of a book-entry system with no physical distribution of Note certificates to be made except as hereinafter provided. One Note certificate in the aggregate principal amount of the Notes stated to mature on September 26, 2007 and registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( DTC ), shall be issued and deposited with DTC and immobilized in its custody. The book-entry system will evidence ownership of the Notes in the principal amount of $100,000 and integral multiples of $1,000 in excess of $100,000, with transfers of ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. The principal of and interest on the Notes shall be payable to Cede & Co. or any other person appearing on the registration books of the District hereinafter provided for as the registered owner of the Notes or his registered assigns or legal representative at such office of the Note Registrar hereinafter mentioned or such other place as the District may determine upon the presentation and surrender thereof as the same shall become due and payable; provided, however, that for so long as the Notes are deposited with DTC, the payment of the principal of and interest on the Notes shall be made to DTC in sameday funds by 2:30 p.m. or otherwise as determined by the rules and procedures established by DTC. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, and transfer of principal and interest payments to beneficial owners of the Notes by participants of DTC will be the responsibility of such participants and other nominees of such beneficial owners. The District will not be responsible or liable for such transfers of payments or for maintaining, supervising or

17 Meeting of February 5, 2007 Continued 8548 reviewing records maintained by DTC, its participants or persons acting through such participants. In the event that (a) DTC determines not to continue to act as securities depository for the Notes or (b) the Chairman of the Board determines that continuation of the book-entry system of evidence and transfer of ownership of the Notes would adversely affect the interests of the beneficial owners of the Notes, the District will discontinue the book-entry system with DTC. If the District identifies another qualified securities depository to replace DTC, the District will make arrangements with DTC and such other depository to effect such replacement and deliver replacement Notes registered in the name of such other depository or its nominee in exchange for the outstanding Notes, and the references to DTC or Cede & Co. in this resolution shall thereupon be deemed to mean such other depository or its nominee. If the District fails to identify another qualified securities depository to replace DTC, the District will deliver replacement Notes in the form of fully-registered certificates in denominations of $100,000 and integral multiples of $1,000 in excess of $100,000 ( Certificated Notes ) in exchange for the outstanding Notes as required by DTC and others. Upon the request of DTC, the District may also deliver one or more Certificated Notes to any participant of DTC in exchange for Notes credited to its account with DTC. Unless indicated otherwise, the provisions of this resolution that follow shall apply to all Notes issued or issuable hereunder, whether initially or in replacement thereof. Section 3. The Notes shall bear the manual or facsimile signatures of the Chairman or Vice Chairman of the Board and the Clerk or the Assistant Clerk to the Board and the corporate seal or a facsimile of the official seal of the District shall be impressed or imprinted, as the case may be, on the Notes. The certificate of the Local Government Commission of North Carolina to be endorsed on all Notes shall bear the manual or facsimile signature of the Secretary of said Commission and the certificate of authentication of the Note Registrar to be endorsed on all Notes shall be executed as provided hereinafter. In case any officer of the Board or the Local Government Commission of North Carolina whose manual or facsimile signature shall appear on any Notes shall cease to be such officer before the delivery of such Notes, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery, and any Note may bear the manual or facsimile signatures of such persons as at the actual time of the execution of such Note shall be the proper officers to sign such Note although at the date of such Note such persons may not have been such officers. No Note shall be valid or become obligatory for any purpose or be entitled to any benefit or security under this resolution until it shall have been authenticated by the execution by the Note Registrar of the certificate of authentication endorsed thereon.

18 Meeting of February 5, 2007 Continued 8549 The Notes to be registered in the name of Cede & Co. and the endorsements thereon shall be in substantially the following form: CUSIP No. R-1 $2,548,000 United States of America State of North Carolina County of Surry FLAT ROCK/BANNERTOWN WATER AND SEWER DISTRICT OF SURRY COUNTY WATER AND SEWER BOND ANTICIPATION NOTE The Flat Rock/Bannertown Water and Sewer District of Surry County (the District ), a municipal corporation duly organized and validly existing in the County of Surry, North Carolina, is justly indebted and for value received hereby promises to pay to CEDE & CO. or registered assigns or legal representative, on the 26th day of September, 2007, the principal sum of TWO MILLION FIVE HUNDRED FORTY-EIGHT THOUSAND DOLLARS and to pay interest thereon from the date hereof, calculated on the basis of a 360-day year consisting of twelve 30-day months, solely from such sources, at the rate of and hundredths per centum ( %) per annum, payable upon the presentation and surrender of this Note at its maturity; provided, however, that for so long as the Notes (hereinafter defined) are deposited with The Depository Trust Company, New York, New York ( DTC ), the payment of the principal of and interest on the Notes shall be made to DTC in same day funds by 2:30 p.m. or otherwise as determined by the rules and procedures established by DTC. Both the principal of and the interest on this Note shall be paid in any coin or currency of the United States of America that is legal tender for the payment of public and private debts on the respective dates of payment thereof. For the prompt payment hereof, both principal and interest as the same shall become due, the faith and credit of the District are hereby irrevocably pledged. This Note is one of an issue of notes designated Water and Sewer Bond Anticipation Note (the Notes ) and is given for money borrowed in the amount of the face of this Note in anticipation of the receipt of the proceeds of the sale of a like amount of Water and Sewer Bonds, duly authorized by an order adopted by the Board of Commissioners for the County of Surry, North Carolina, acting in its capacity as the governing body of the District (the Board ), on July 21, 2003 (the Bond Order ), which order was approved by the vote of a majority of the qualified voters of the District who voted thereon at a referendum duly called and held on October 7, 2003, and this Note is issued pursuant to and in full compliance with The Local Government Bond Act, as amended, Article 9, as amended, of the General Statutes of North Carolina, and a resolution adopted by the Board on February 5, 2007 (the Note Resolution ). The Notes shall be issued by means of a book-entry system with no physical distribution of note certificates to be made except as provided in the Note Resolution. One

19 Meeting of February 5, 2007 Continued 8550 Note certificate in the aggregate principal amount of the Notes stated to mature on such date and registered in the name of Cede & Co., as nominee of DTC, is being issued and deposited with DTC and immobilized in its custody. The book-entry system will evidence ownership of the Notes in the principal amount of $100,000 and integral multiples of $1,000 in excess of $100,000, with transfers of ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. Transfer of principal and interest payments to participants of DTC shall be the responsibility of DTC, and transfer of principal and interest payments to beneficial owners of the Notes by participants of DTC shall be the responsibility of such participants and other nominees of such beneficial owners. The District shall not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In certain events, the District will be authorized to deliver replacement Notes in the form of fully-registered certificates in the denomination of $100,000 and integral multiples of $1,000 in excess of $100,000 in exchange for the outstanding Notes as provided in the Note Resolution. At the office of the Note Registrar, in the manner and subject to the conditions provided in the Note Resolution, Notes may be exchanged for an equal aggregate principal amount of Notes of the same maturity, of authorized denominations and bearing interest at the same rate. The Note Registrar shall keep at his or her office the books of the District for the registration of transfer of the Notes. The transfer of this Note may be registered only upon such books and as otherwise provided in the Note Resolution upon the surrender hereof to the Note Register together with an assignment duly executed by the registered owner hereof or his attorney or legal representative in such form as shall be satisfactory to the Note Registrar. Upon any such registration of transfer, the Note Registrar shall deliver in exchange for this Note a new Note or Notes, registered in the name of the transferee, of authorized denominations, in an aggregate principal amount equal to the unredeemed principal amount of this Note, of the same maturity and bearing interest at the same rate. This Note is not subject to redemption prior to maturity. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of North Carolina to happen, exist and be performed precedent to and in the issuance of this Note have happened, exist and have been performed in regular and due form and time as so required and that the total indebtedness of the District, including this Note, does not exceed any constitutional or statutory limitation thereon. This Note shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Note Resolution until this Note shall have been authenticated by the execution by the Note Registrar of the certificate of authentication endorsed hereon. IN WITNESS WHEREOF, the District, pursuant to a resolution of the Board, has caused this Note to be signed by its Chairman or Vice Chairman and the Clerk or Assistant Clerk to the Board and the official seal of the District to

20 Meeting of February 5, 2007 Continued 8551 be impressed hereon, all as of the 13th day of February, [SEAL] Chairman Clerk [To be endorsed upon reverse of Note] CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within Note has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary, Local Government Commission By: Designated Assistant CERTIFICATE OF AUTHENTICATION This Note is issued under the provisions of the within mentioned Bond Order and Note Resolution. By: Note Registrar Date of authentication: February 13, 2007 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints, attorney, to register the transfer of said Note on the books kept for registration thereof, with full power of substitution in the premises. Dated: In the presence of: NOTICE: Signature must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program (STAMP) or similar program. The signature to this assignment must correspond with the name as it appears upon the face of the within note in every particular, without alteration or enlargement or any change whatever.

21 Meeting of February 5, 2007 Continued 8552 Section 4. Notes, upon surrender thereof at the office of the Note Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Note Registrar, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Notes of the same maturity, of any denomination or denominations authorized by this resolution and bearing interest at the same rate. The transfer of any Note may be registered only upon the registration books of the District upon the surrender thereof to the Note Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Note Registrar. Upon any such registration of transfer, the Note Registrar shall authenticate and deliver in exchange for such Note a new Note or Notes, registered in the name of the transferee, of any denomination or denominations authorized by this resolution, in an aggregate principal amount equal to the unredeemed principal amount of such Note so surrendered, of the same maturity and bearing interest at the same rate. In all cases in which Notes shall be exchanged or the transfer of Notes shall be registered hereunder, the Note Registrar shall authenticate and deliver at the earliest practicable time Notes in accordance with the provisions of this resolution. All Notes surrendered in any such exchange or registration of transfer shall forthwith be canceled by the Note Registrar. The District or the Note Registrar may make a charge for shipping and out-of-pocket costs for every such exchange or registration of transfer of Notes sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer, but no other charge shall be made by the District or the Note Registrar for exchanging or registering the transfer of Notes under this resolution. As to any Note, the person in whose name the same shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any such Note and the interest on any such Note shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Note, and interest thereon, to the extent of the sum or sums so paid. The District shall appoint such registrars, transfer agents, depositaries or other agents as may be necessary for the registration, registration of transfer and exchange of Notes within a reasonable time according to then current commercial standards and for the timely payment of principal and interest with respect to the Notes. The Finance Officer of the County of Surry, North Carolina, or any person at any time acting in such capacity, is hereby appointed the registrar, transfer agent and paying agent for the Notes (collectively the Note Registrar ), subject to the right of the Board to appoint another Note Registrar, and as such shall keep at his or her office, the books of the District for the registration, registration of

22 Meeting of February 5, 2007 Continued 8553 transfer, exchange and payment of the Notes as provided in this resolution. Section 5. The District covenants that, to the extent permitted by the Constitution and laws of the State of North Carolina, it will comply with the requirements of the Internal Revenue Code of 1986, as amended or as may be amended from time to time, and any Treasury regulations now or hereafter promulgated thereunder, to the extent necessary so that interest on the Notes will not be included in the gross income of the owners of the Notes for purposes of federal income tax. Section 6. The actions of the officers of the District in applying to the Local Government Commission to approve, advertise and sell the Notes and the Local Government Commission in asking for bids for said Notes by printing and distributing circulars relating to the sale of said Notes are hereby authorized, approved, ratified and confirmed. Section 7. The District hereby represents that it reasonably expects that it, all subordinate entities thereof and all issuers issuing obligations on behalf of the District will not issue in the aggregate more than $10,000,000 of tax-exempt obligations (not counting private-activity bonds except for qualified 501(c)(3) bonds as defined in the Code) during calendar year In addition, the District hereby designates the Notes as qualified tax-exempt obligations for the purposes of Section 265(b)(3) of the Code. Section 8. The Offering Information and Blank Proposal prepared in connection with the public sale of the Notes, substantially in the form presented to the Board, is hereby approved and accepted for use in connection with the offering and sale of the Notes with only such material changes as may be approved by the Chairman or Vice Chairman of the Board. Section 9. The distribution of the Offering Information and Blank Proposal by the Local Government Commission of North Carolina to prospective bidders on the Notes is hereby authorized, ratified, confirmed and approved. Section 10. The publication of any notice of sale or other advertisement or notice to the public in connection with the issuance, sale and delivery of the Notes is hereby authorized, ratified, confirmed and approved. Section 11. This resolution shall take effect upon its passage. 6. Approve budget change no. 12 as follows: The Board of County Commissioners approved an amendment to the FY Budget Ordinance at their meeting on February 5, ACCOUNT PREVIOUS REVISED CODE DESCRIPTION AMOUNT CHANGE AMOUNT GENERAL FUND EXPENDITURES Governing Body Group Insurance 21,108 (600) 20,508 Decrease departmental total. 532,741 (600) 532,141