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    Minutes of February 5, 2007 Board of Commissioners regular meeting, (adopted)







Wake County Board of Commissioners

February 5, 2007

Regular Meeting


The Wake County Board of Commissioners met in regular session Monday, February 5,

2007 at 2:00 p.m. in the Commissioners’ Room, 7th Floor, Wake County Courthouse, Raleigh, North

Carolina. Members present were Commissioners Lindy Brown; Joe Bryan; Paul Coble; Kenn M.

Gardner; Tony Gurley; Betty Lou Ward; and Harold Webb.
Others attending were the County Manager, David C. Cooke; the County Attorney,
Mr. Michael R. Ferrell; and the Clerk to the Board, Mrs. Susan Banks.

Chairman Gurley called the meeting to order.

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PLEDGE OF ALLEGIANCE

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INVOCATION
Reverend Paul Anderson offered the invocation.

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APPROVAL OF AGENDA

Commissioner Gardner asked to add an item for discussion from the January 8th meeting concerning the Project Manager funds on School construction projects and Commissioner Ward stated she would like to discuss the topic of moving up the school bonds that was originally discussed in the retreat. Chairman Gurley asked if there were any objections. There were none and the agenda passed with a consensus vote.
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MINUTES

Upon motion of Commissioner Ward, seconded by Commissioner Webb, the Board unanimously approved the Minutes of January 8, and January 16, 2007.
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NATIONAL ARTS PROGRAM EXHIBITION RECOGNITION FOR
WAKE COUNTY EMPLOYEES AND THEIR FAMILIES

Ms. Eleanor Jordan explained that five employees or family members from Wake County and the City of Raleigh won the National Arts Program Awards. This is where professional and nonprofessional artists compete for cash prizes. The five winners were:

The Wake County employee and family winners are:

In the Adult Intermediate category:
First Place: Elizabeth Hayden, Wake County Library employee (Cameron Village)
Second Place: Ife B. Grady, Wake County Library employee (Cameron Village)
Third Place: Gregory Beaver, Relative of County employee (Donna Beaver, Wake
County Library employee, Zebulon Library)

In the Youth Under 12 category:
Third Place: Mekeda Smallwood, Relative of County employee
(Vicki Smallwood, Human Services)

In the Youth 12-18 category:
Third Place: Haley McArtor, Relative of County Employee
(Ken McArtor, Revenue Department)

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PROCLAMATION RECOGNIZING THE
TOWN OF ZEBULON’S 100TH ANNIVERSARY

Mayor Robert McPheeny, Town of Zebulon, said they would be celebrating the 100th anniversary of the Town of Zebulon with a birthday party tonight but February 16th is the actual date. The celebration will run through September. He thanked the Board for the Proclamation and the recognition for Zebulon. He stated this was an important event for the community. He also introduced the other Town Council members that were present.
PROCLAMATION
In recognition of
The Town of Zebulon’s 100th Anniversary


WHEREAS, the Town of Zebulon was incorporated February 16, 1907; and,

WHEREAS, the Town of Zebulon was named after Zebulon B. Vance the former Governor of North Carolina; and

WHEREAS, the Town of Zebulon is know as the “The Town of Friendly People”; and,

WHEREAS, the Town of Zebulon consists of 2590 acres and continues to grow and prosper through the continued dedication, insight and planning of the Town’s leaders and citizens; and

WHEREAS, the Town of Zebulon will be celebrating its Centennial throughout the year in 2007; and

WHEREAS, the Town of Zebulon has served the citizens of Zebulon and Wake County with dedication and distinction for the past century.

NOW, THEREFORE, the undersigned Chairman of the Wake County Board of Commissioners, does hereby, on behalf of the Board, express gratitude and appreciation to the Town of Zebulon for 100 years of faithful service to the citizens of Zebulon and Wake County.

This 5th day of February 2007.


_______________________________________
Chairman
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RECOGNITION AND APPRECIATION FROM HOSPICE OF
WAKE COUNTY FOR CAPITAL FUNDING

Thad Woodard reported on the Hospice project. They serve seven other counties. He thanked the Wake County Board of Commissioners for their continual support.
Ms. Jordan recognized Mekeda Smallwood, a third grader, who arrived alittle later, and was an award winner.

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PRESENTATION BY THE LEADERSHIP COUNCIL OF THE 10TH YEAR
ACTION PLAN TO END HOMELESSNESS TO ACKNOWLEDGE THE
CONTRIBUTIONS OF WAKE COUNTY AND OTHER PARTNERS
IN THE SUPPORT CIRCLE PROGRAM

Ms. Kay Ferguson gave a report on the 10 Year Plan to End Homelessness which began in 2005. The Support Circle program is formed with faith based communities that support a family or individual that is homeless in the community. There is a Leadership Council which has representatives from all segments of society. Kevin Cain spoke on behalf of the Leadership Council. He thanked the Board for its support which keeps the momentum going by directly addressing the homelessness. They are into the second year of the plan. He stated that the
Support Circles started when 200 evacuees came to Wake County from New Orleans.
In addition to the $57,000 from the County, the City gave $100,000 and they are trying to find a match for these funds. The congregations and faith organizations actually supply the support circles. He reviewed all of the Support Circle Partnership members. Catholic Charities contributes to the program. The City of Raleigh administered the rental subsidy. The Raleigh Housing Authority and Greater Raleigh Chamber of Commerce are also participants in the program.

Reverend Paul Anderson is a member of the Leadership Council and spoke to the Board. He thanked the Board for what they have done for this program but encouraged other houses of faith for their support. He said they have the first person who graduated from the program. They are working to help these people have homes, with the children and parents having their own bedrooms. He looks forward to working with this partnership in the future. They have a partnership with CASA and they make sure they have everything they need. Church Congregations provide transportation, $2,000 subsidy and there are other supporters. The homeless can call Catholic Charities for help.

The coordination with other programs for the individuals is done by the Catholic Charities, as well as a training program and will have three or four more throughout the year. Other programs funnel the people to Catholic Charities. Commissioner Ward asked if they do any follow up on the people. They hope that these people are establishing long term relationships with agencies that have a heart for them.
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Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board of Commissioners voted unanimously to approve the items for consent as presented.
AMBUMED NC, INC. REQUEST FOR
CONVALESCENT TRANSPORT AMBULANCE FRANCHIS REQUEST

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to issue an ambulance franchise for non-emergency convalescent care ambulance service to AmbuMed, NC, Inc., of Ayden, North Carolina, subject to approval by the County Manager.
ORDINANCE GRANTING FRANCHISE TO AMBUMED NC, INC.
FOR OPERATION OF A CONVALESCENT CARE AMBULANCE SERVICE

WHEREAS, AmbuMed NC, Inc., located in Ayden, North Carolina, has applied for a franchise for operation of a convalescent care ambulance transport service in Wake County; and

WHEREAS, Chapter 2-7, Article III of the Wake County Code of Ordinances authorizes the grant of such a franchise by the Wake County Board of Commissioners; and

WHEREAS, AmbuMed NC, Inc.’s franchise request has been reviewed and given preliminary approval by the Director of the Division of Emergency Medical Services of Wake County’s Department of Public Safety; and

WHEREAS, issuance of the requested franchise will take place only upon recommendation of such issuance by the Director of the Division of Emergency Medical Services to the County Manager;

NOW, THEREFORE, BE IT ORDAINED, THAT AmbuMed NC, Inc. be granted a franchise of five years’ duration for the delivery of convalescent care ambulance transport service in Wake County, North Carolina, PROVIDED that such franchise be issued by the County Manager only upon a finding of compliance with the provisions of Chapter 2-7, Article III of the Wake County Code of Ordinances and all other applicable State statutes and regulations governing such ambulances services on the part of AmbuMed NC, Inc. by the Director of the Emergency Medical Services Division of Wake County’s Department of Public Safety, a copy of which finding shall be maintained in the permanent files of the Clerk to the Board, and, PROVIDED FURTHER, that if AmbuMed NC, Inc. does not offer the services authorized by this Ordinance, or discontinues the services authorized by this Ordinance during the life of the franchise, then, upon sixty (60) days’ notice by Wake County, the franchise authorized herein shall be declared null and void.

Effective this 5 day of February, 2007.

ATTEST:


_____________________________ _________________________
Tony Gurley Susan Banks
Chairman Clerk to the Board


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ADDITIONAL ONE-TIME FUNDING OF $63,262 FOR RYAN WHITE
TITLE III CARE SERVICES PROGRAM

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to accept $63,262 in one-time funds for Ryan White Title III Care services and revise the budget accordingly.
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ACCEPTANCE OF $84,000 IN RECURRING FUNDS TO
EXPAND HOUSING CAPACITY FOR ADULTS WITH MENTAL ILLNESS
THROUGH SUPPORT OF THE OPERATION OF OAK HILL APARTMENTS

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to accept a recurring allocation of $84,000 of HUD 811 funds from the Division of Mental Health, Developmental Disabilities and Substance Abuse Services to expand housing capacity for adults with mental illness and revises the budget accordingly.
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ACCEPTANCE OF $52,500 IN 0NE-TIME FUNDING FROM THE
MENTAL HEALTH TRUST FUND TO EXPAND HOUSING CAPACITY
FOR ADULTS WITH MENTALL ILLNESS

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to accept a one-time allocation of $52,500 from the Division of Mental Health, Developmental Disabilities and Substance Abuse Services to expand housing capacity for adults with mental illness and revises the budget accordingly.
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BUDGET AMENDMENT TO THE
WORKFORCE DEVELOPMENT PROJECT ORDINANCE
TOTALING $50,000

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to accepts the Workforce Development funding in the amount of $50,000 to the Workforce Development Project Ordinance with the appropriate budget revisions to increase appropriations in the Workforce Development Special Revenue Fund.
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DISPOSAL OF COUNTY-OWNED SURPLUS PROPERTY AT
3601 DOYLE ROAD IN ZEBULON, NC AT
THE SITE FO THE LITTLE RIVER RESERVOIR PROJECT

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to:
1) Declare the property located at 3601 Doyle Road, Zebulon, NC as surplus County property and authorize the County Manager, or his designee, to advertise the property for sealed bids and enter into necessary contracts for the removal or demolition of existing structures, and
2) Approve the placement of any funds received through the sale of this surplus property in the Little River Reservoir Land Acquisition Capital Improvement Fund.
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EXCHANGE OF COUNTY-OWNED PROPERTY
WITH RAYMOND P. PERRY AND CHERYL PERRY SMITH
ON LIZARD LICK ROAD AT THE SITE OF THE LITTLE RIVER RESERVOIR PROJECT

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to:
1) Approve the exchange of approximately 12.056 acres owned by Wake County (portions of Wake County Tax ID #0182605 and ID# 0054411) for 13.455 acres owned by Raymond P. Perry and Cheryl Perry Smith (portion of Wake County Tax ID #0182604). In addition, the County agrees to pay $50,000 to Raymond P. Perry and Cheryl Perry Smith to facilitate an equitable exchange;
2) Authorize the County Manager to execute a contract on behalf of Wake County for the purchase of 13.455 acres and exchange of County owned property; and
3) Approve an agricultural lease for $1.00 per year for a period of no less than 5 years with Raymond P. Perry and Cheryl Perry Smith.
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AWARD OF CONSTRUCTION CONTRACT TOTALING $350,000
FOR PHASE 3 FACILITY CONDITION ASSESSMENT IMPROVEMENTS
TO THE PUBLIC SAFETY CENTER

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to award a construction contract to Triple M Contractors, Inc of Liberty, NC in the amount of $350,000 for Phase 3 Facility Condition Assessment Improvements for the Public Safety Center.
BID TABULATION

PROJECT: Public Safety Center Phase 3 Facility Improvements – Floors 6 & 7
CONTRACT: General

DATE: January 16, 2007
TIME: 2:00 PM

CONTRACTOR
LICENSE NO.ADDENDA
MBE DOCUMENTS
BID BOND
BASE
BID
Triple M Contractors, Inc.
3545 Silk Hope Liberty Rd.
Liberty, NC 27298
59649
1,2,3
Yes
5%
$350,000.00
Progressive Contracting Co. Inc.
143 Charlotte Ave., Suite 201
Sanford, NC 27330
36100
1,2,3
Yes
5%
$437,000.00
Prime Building Co., Inc. of NC
401 Oberlin Road, Suite 200
Raleigh, NC 27605
30143
1,2,3
Yes
5%
$439,960.00
Lomax Construction, Inc.
PO Box 35169
Greensboro, NC 27425
37571
1,2,3
Yes
5%
$444,400.00
This is to certify that the bids tabulated herein were publicly opened and read on the 16th day of January, 2007 in Room 926, 9th Floor of the Wake County Office Building, 336 Fayetteville Street Mall, Raleigh, NC, and that all said bids were accompanied by certified checks or bidder's bond except as otherwise noted.

____________________________________
Phillip D. Stout
Director, Facilities Design & Construction

ARCHITECT: BJAC
811 W. Hargett Street
Raleigh, NC 27603
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APPROVAL TO ADD REQUESTS FOR REFUNDS OF EXCISE STAMP TAXES
TO THE DUTIES OF THE WAKE COUNTY TAX COMMITTEE

Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to approve the expansion of the duties of the Wake County Tax Committee to include reviewing requests for refunds of Excise Stamp Tax pursuant to G.S. 105-228.37.
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RESOLUTION SETTING DATE FOR ADVERTISEMENT OF TAX LIENS
Upon motion by Commissioner Webb, seconded by Commissioner Gardner, the Board voted unanimously to adopt the following resolution setting the date for advertisement of tax liens.

RESOLUTION SETTING DATE FOR ADVERTISEMENT OF TAX LIENS


WHEREAS, as required by Section 105-369 of the General Statutes of North Carolina, the Revenue Director of Wake County has, on this first Monday in February, 2007, reported the total amount of unpaid taxes for the current fiscal year, including deferred taxes which have become due and for which no prior lien advertisement has been published, and property heretofore protected by automatic stay in bankruptcy.

NOW, THEREFORE, BE IT RESOLVED:

That the Revenue Director be, and he hereby is, ordered to advertise on the eighth day of March, 2007 or as soon thereafter as possible the tax liens on real property in the County for unpaid taxes for the current fiscal year, liens for deferred taxes upon which no prior lien advertisement has been published, and liens for delinquent taxes upon real property heretofore protected by automatic stay in bankruptcy, and shall place said advertisement at some public location at the Courthouse and shall publish said advertisement once in one or more newspapers having general circulation in the County setting forth that the taxing unit may foreclose the tax liens and sell the real property subject to the liens in satisfaction of its claim for taxes.

Commissioner Webb moved the adoption of the Foregoing Resolution, Commissioner Gardner
Seconded it; and upon being put to a vote, it was unanimously adopted.

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TAX COMMITTEE RECOMMENDATIONS FOR VALUE ADJUSTMENTS, LATE FILED APPLICATIONS, COLLECTIONS REFUNDS AND TAX COLLECTIONS REPORT

Upon motion of Commissioner Webb, seconded by Commissioner Gardner, the Board accepted and unanimously accept the recommendations from the Tax Committee as follows:

1.Report of Collections – Wake County Only – December 2006
2.Wake County In-Rem Foreclosure Progress Report – December 2006
3.
Value Adjustments and Special Situations: (Wake County Only), (Wake County and Town of Cary), (Wake County and City of Raleigh), (Wake County and Town of Wake Forest)
4.
Consideration of Requests for Exemptions-Late Filed Applications: (Wake County Only), (Wake County and City of Raleigh)
5.Consideration of Requests for Adjustments, Rebates and/or Refunds of Penalties: (Wake County Only), (Wake County and Town of Cary), (Wake County and Town of Garner), (Wake County and City of Raleigh), (Wake County and Town of Wendell), (Wake County and Town of Zebulon)
6.Consideration of Refund for Taxes, Interest, and Penalties: (Wake County Only), (Wake County and Town of Apex), (Wake County and Town of Cary), (Wake County and Town of Holly Springs), (Wake County and Town of Morrisville), (Wake County and City of Raleigh), (Wake County and Town of Wake Forest)
7.Consideration for Release of Penalties and Interest for Wake County Prepared Food and Beverage Taxes: (Wake County Only)
8.
Consideration of Requests for Historic Property Deferment-Late Filed Applications: (Wake County Only)
9.
Request for Tax Relief-Late Filed Applications: (Wake County Only), (Wake County and Town of Fuquay-Varina), (Wake County and City of Raleigh)
10.
Rebate Details: (Wake County and Town of Apex), (Wake County and Town of Cary), (Wake County and Town of Fuquay-Varina), (Wake County and Town of Garner), (Wake County and Town of Holly Springs), (Wake County and Town of Knightdale), (Wake County and Town of Morrisville), (Wake County and Town of Rolesville), (Wake County and Town of Wake Forest), (Wake County and Town of Wendell), (Wake County and Town of Zebulon)

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RESOLUTION ALLOWING THE WAKE COUNTY SHERIFF TO
EMPLOY RETIRED COUNTY LAW ENFORCEMENT OFFICERS
ON A PART-TIME BASIS

RES-2007-8

Sheriff Harrison asked the Board to approve the request to allow him to employ retired County Law Enforcement Officers on a part-time basis because by the time he hires and trains new officers, they are leaving for other employment. This speeds up the hiring process and they do not have to be trained. This allows hiring County law enforcement retirees. The Sheriff could already hire retired law enforcement officers from other agencies.

Upon motion by Commissioner Ward, seconded by Commissioner Coble, the Board voted unanimously to approve the resolution.

RESOLUTION ALLOWING THE WAKE COUNTY SHERIFF TO EMPLOY
RETIRED OFFICERS ON A PART-TIME BASIS

WHEREAS, the Wake County Sheriff has requested that the Wake County Board of Commissioners approve the hiring of retired law enforcement officers to work part-time for the Wake County Sheriff’s Office; and,

WHEREAS, it is cost effective to have the ability to hire former officers who are already well trained and familiar with the job duties to serve in a part-time capacity; and,

WHEREAS, N.C.G.S 143-166.41 addresses the qualifications and restrictions affecting the special separation allowance for retired law enforcement officers; and,

WHEREAS, the provisions of N.C.G.S. 1430166.42 provide that the governing body of a local unit of government shall be responsible for determining the eligibility for their local officers retired under the provisions of N.C.G.S 128-27(a) to receive the special separation allowance; and,

WHEREAS, the provisions of these statutes could have an affect on whether or not an eligible law enforcement officer would lose the benefit of the special separation allowance should he/she be re-employed by a local employer; and,

WHEREAS, after consideration, this Board of Commissioners has determined that these law enforcement officers so affected shall continue to be eligible to receive their previously approved separation allowance from Wake County as long as they work for the Wake County Sheriff or for the Wake County City County Bureau of Identification (CCBI) for an hourly wage, without benefits, and work less than 1000 hours annually; and,

WHEREAS, if any law enforcement officer shall work more than 1000 hours annually for the Sheriff or for CCBI after qualifying for the special separation allowance from Wake County, that separation allowance shall cease,

NOW, THEREFORE, BE IT RESOLVED, that the Wake County Board of Commissioners hereby authorizes the Wake County Sheriff and the County Manager to hire retired Wake County law enforcement officers on a part-time basis according to the specifications of this Resolution.

Adopted this the 5th day of February 2007.
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APPROPRIATION OF CIP 2006 FUNDS FOR
WAKE COUNTY PUBLIC SCHOOL SYSTEM RENOVATION
PROJECTS AND CROWDING SOLUTIONS

Chairman Gurley said the County had received the request from the School Board for capital funds. He explained the recommended action on the agenda item and stated the proposal included all the items in Column H of attachment 2 for a total of $61,332,619.

The following was the request from the schools.
RESOLUTION REQUESTING ALLOCATION OF FUNDS
CIP 2006 SCHOOL BUILDING PROGRAM

WHEREAS, the Wake County Board of Education is engaged in a Long-Range Building Program, and

WHEREAS, the Wake County Board of Education has approved the projects listed below as part of its CIP 2006 Building Programs, and contracts have been or will be let for planning, design, and construction services.

NOW, THEREFORE, BE IT HEREBY RESOLVED, that the Wake County Board of Education requests that the Wake County Board of Commissioners appropriate a total of $281,993,748 for the projects listed below:


PROJECT
APPROPRIATION
East Millbrook Middle (construction)
$27,518,813
Lynn Elementary (construction)
$20,965,106
Aversboro Elementary (construction
$20,158,544
Cary High (design)
$500,000
Martin Middle (design)
$853,989
East Wake High (design)
$2,015,569
Enloe High (design)
$630,493
Year Round Conversion (equipment)
$3,450,000
Poe Elementary (design and swing space)
$1,678,315
Root Elementary (design)
$1,634,648
Smith Elementary (design)
$1,503,632
Lacy Elementary (design and swing space)
$4,068,922
Heritage High (construction)
$56,321,991
E 17 (design)
$336,674
River Bend Elementary (construction)
$19,584,080
E 22 (construction)
$15,971,953
Wendell Middle (design and startup equipment)
$2,925,805
Banks Rd Elementary (construction)
$21,232,716
Laurel Park Elementary (construction)
($20,148,651)
Offsite Costs (construction)
$3,487,186
Mobile relocation and leasing (design and const.)
$3,788,700
Wendell & E Cary Conversion (Const. and equipment)
$472,760
9th Grade Centers (design, const., and equip.)
$7,345,200
E 25 (design)
$2,160,424
E 27 (design)
$2,160,424
E 28 (design)
$2,160,424
E 30 (design)
$2,160,424
M 9 (design)
$3,951,529
M 10 (design)
$3,951,529
H 6 High (design)
$5,666,221
Facility Assessment for 2007
$531,443
Life Cycle Roofing Replacement (design and const.)
$1,817,952
Child Nutrition Warehouse (design)
$260,454
Property Acquisition
$20,579,179
TOTAL
$281,993,748

Resolved this 21st day November 2006 WAKE COUNTY BOARD OF EDUCATION

By: __________________________________
Patti Head, Chair
Attest: _______________________________
Del Burns, Ed., D., Secretary



RESOLUTION REQUESTING REALLOCATION OF FUNDING
CIP 2006 CAPITAL BUILDING PROJECTS

WHEREAS, the Wake County Board of Education is engaged in a Long-Range Building Program, and

WHEREAS, the Wake County Board of Education has approved the projects listed below as part of its CIP 2006 Building Programs, and contracts have been or will be let for planning and design services.

NOW, THEREFORE, BE IT HEREBY RESOLVED, that the Wake County Board of Education requests that the Wake County Board of Commissioners reallocate funds as follows:
      FROM
AMOUNT
TO
      AMOUNT
      CIP 2006 Building Program
      East Millbrook Middle
$103,652
      Building Permit Fees
$731,319
      Lynn Elementary
$73,899
      Aversboro Elementary
$70,899
      Heritage High
$192,936
      River Bend Elementary
$72,915
      E 22
$74,079
      Banks Rd Elementary
$73,251
      Laurel Park Elementary
$70,138
$73,319
CIP 2006 Total
$731,319
Resolved this 21st day of November 2006 WAKE COUNTY BOARD OF EDUCATION

By: ____________________________
Patti Head, Chair

Attest:____________________________
Del Burns, Ed., D. Secretary

Commissioner Webb asked for clarification about the funds for mobile classrooms. Chairman Gurley said the proposal adds back in mobile classrooms but the amount is reduced by the mobile units needed for mandatory year round schools.

There was a request from the School Board but the commissioners gave them more funds in the amount of $372,877,000 which would enable the schools to accelerate construction of new schools. He said $4.76 million that was requested for mandatory year round schools was not included in the approved allocation.

Commissioner Ward asked when they would finally give the Schools these funds for the year round school conversion. She said the Board made a commitment to the School Board and the system and made a plan to deal with the schools. She would vote against this plan.

Chairman Gurley said he still does not plan to include funds in the amount of $4.76 million for year round school conversion.

Commissioner Webb said this is a policy decision. He stated the bond issue was voted on by the citizens which passed by 53% so the money should be made available to the schools. He said they may need to get a Judge to make that decision. He supports giving the funds for the year round conversion to the schools. He stated the Board of Commissioners met with the Board of Education for an entire year to decide on what should be on these bonds and then the people approved the bonds. He said he is not for or against the year round schools and this Board’s role is to fund the Schools Board’s decision. He asked if there were going to be any more meetings with the two boards? Commissioner Coble stated the chair and vice chair of both boards have continued to have leadership meetings.

Commissioner Paul Coble moved to approve the resolution and proposed allocation of $61,332,619. Chairman Gurley seconded the motion.

Commissioner Webb offered an amendment to the motion to fund the $61,332,619 and add $3,455,000 and $1,310,000 for the conversion of year round schools. Commissioner Brown seconded the amendment to the motion.

The Board discussed the proposed amendment to the motion. Commissioner Ward noted that it is the School Board’s responsibility to plan for the number of seats needed for students for each school year. Some schools have been using the cafeterias for classes. She was in favor of the amendment and felt this Board should not try to get into the schools policies.

Commissioner Webb spoke of the letter from School Board Chairman Patti Head concerning the funds requested and asked that the Board reconsider providing them with the original request.

Chairman Gurley called for a vote on the amendment to the motion. Commissioners in favor of the amendment were: Brown, Ward and Webb. Commissioners opposed to the amendment were: Bryan, Coble, Gardner and Gurley. The amendment failed.

The Board then further discussed the original motion. Chairman Gurley said the Board had already funded the new schools. He said he was not opposed to year round schools but he was told when supporting the school bond that the year round schools would be offered as voluntary. He was also told that parent would be offered options but he has not heard of any options. He said it should be the parents’ choice. Commissioner Webb spoke about the Board of Commissioners getting in the policy of the School Board. Commissioner Ward felt that the Board of Commissioners was overstepping their authority since the public approved the bond referendum. Commissioner Brown spoke about the business community should be included in this discussion. Chairman Gurley said that no where in the bond materials did it say that the schools would be mandatory year round schools. Commissioner Brown said she was opposed to year round schools but felt this was a School Board decision.

The County Attorney, Michael Ferrell, was asked for his opinion. He stated that pupil assignment is the Board of Education’s responsibility. Commissioner Bryan said the Board of Commissioners approved giving the Schools $19 million more than they asked for in their request.

Chairman Gurley called for a vote on the original motion to allocate $61,332,619. Commissioners in favor of the original motion were: Bryan, Coble, Gardner and Gurley. Commissioners opposed to the original motion were: Brown, Ward and Webb.

RESOLUTION R-2007-9

Approving Appropriation of CIP 2006 Funding
for School Capital Building Projects


WHEREAS, the Wake County Board of Education is engaged in a Long Range Building Program; and,

WHEREAS, the Wake County Board of Education has duly requested, through resolutions adopted on November 21, 2006, that the Board of Commissioners approve the appropriation of $281,993,748 and reallocation of $731,319 to the CIP 2006 Building Program; and,

WHEREAS, the Wake County Board of Commissioners approved the acceleration of funding to construct two elementary schools and one middle school and made other modifications; and

WHEREAS, the modifications in timing of renovation projects may cause an increase costs that the Board of Commissioners wishes to avoid,

NOW, THEREFORE, BE IT RESOLVED that the Wake County Board of Commissioners hereby appropriates $61,332,619 as listed below:


CIP 2006 Appropriation & Reallocation




Adopted this the 5th day of February 2007.
********************
Public Comments
3pm

Kim Wallace, from Cary, thanked the Board for the action they took withholding funds for the mandatory year round school calendar. She encouraged them to holdfast to that decision.

Eugene Weeks, from Raleigh, was appalled by the Board of Commissioners action because they did not stick by their word on the bonds. He was opposed to the possibility of a 2007 bond which had been discussed by the Board.

Daniel Coleman, from Raleigh, supports the Schools CIP and said the boards were in agreement on the bonds. Everyone wants a choice.

Tammy Howard Stupy, a Holly Springs elementary teacher, spoke about overcrowded schools and how the students lose the ability to use the library, music rooms, etc. She was concerned about having only three weeks to prepare her classroom for year round schools.

Scott Haviland, from Cary, thanked the Board for partnering with the Board of Education. The Board of Education needs to abandon the year round plan. He was opposed to the expense for going year round and asked the Board not to give them the funds to do so.

Jennifer Lanane, Holly Springs elementary teacher, need to provide good schools with a seat for everyone in classrooms with plenty of space and the equipment teachers need for teaching students. Holly Springs could be a good schools. She said to tell the students why the trailers won’t be here in time and they would not have access to the library, computer room, art room, and them why they will spend so much time.

Dawn Graff, from Cary, said thanked the Board for listening to the parents in December. She spoke of accountability for schools and asked the Board to continue to listen to the voters. She was happy that mandatory year round has been halted.

Kathleen Brennan, from Cary, thanked the Board for fulfilling taxpayers’ request. She was amazed that school board found 2400 seats that are an option which should be embarrassing. She was very critical of the School Board for this financial oversight.

Todd Cox, from Cary, thanked commissioners for listening and for responding to his emails. He said no one from the School Board members has responded to his concerns. He spoke of open seats in Morrisville and asked why the Schools are being converted to year round when there are extra seats available.

Lisa Ellison, from Cary, said she has three children and there is no way to guarantee a coordinated schedule for all three children. She asked why the schools want to fund a program that has failed around the United States. She stated that there were supposed to be options offered for the year round school but there was not much of an option.

Charlotte Turpin, from Raleigh, spoke about commissioners manipulating the money. She is a retired school teacher and said anyone can manipulate the data and facts. She said no one was going to leave their job or Wake County because they did not the get school or schedule they wanted. She said the Board needs to put the children first.

Tim Ingles spoke about the Schools and it costs $13.2 million for 13,000 seats. He said there were 2,100 seats created for 17 elementary schools for $3.4 million. He thanked the Board for their oversight. Board members are sworn by oath to make sure the numbers are right.

Cris Clarke, from Apex, said there needs to be accuracy and accountability. Schools are inaccurate in stating their own goals and had an inaccurate growth forecast. They have lately been talking about 3,000 students now instead of 8,000 students that were originally discussed. They were told that mandatory year round schools and the bond were two separate issues. Now it’s the same thing. Commissioners should demand accuracy.

Stephanie Marcellino, from Raleigh, spoke about equal opportunity and year round choices. There is not a uniform system. She urged the School Board to look at their system. Year round schools will weaken the family unit and community.

Helen Tart, from Raleigh, questioned the information about another school bond being proposed in the fall. She opposed raising property tax and preferred real estate transfer tax.

Ann Lewis thanked the commissioners for withholding the funds for year round conversion. Accurate information was not shared with the citizens concerning the bonds and connection to year round schools. The votes for the bond were for supporting education versus supporting year round schools. She hopes the other commissioners understand that this Board is what is keeping the Board of Education responsible.

Carla Tiller, from Apex, has volunteered for year round schools. She said it works for her family but the options are limited. The Schools offered 96 seats for over 5,000 students as an option. The year round schools only addresses 1.88% of students addressed and it looks like Apex is being treated unfairly. Property values are being adversely affected.

Cindy Cinques from Cary has children 9 to 15 years old. Her school is being taunted as overcrowded. There are several elementary schools around there. She asked if they did not build this school large enough? She said it is not reasonable for 3 year old school to already be overcrowded. She felt they could balance her school with the neighboring school.

Citizen from Silver View Lane in Raleigh spoke of this huge injustice and the problems with the numbers in the schools figures that has come to light in the last 30-60 days. Mr. Delaney said this conversion is a four to five year term but we’re nothing in the crisis. A law firm has been retained.

Margaret Lawrence, from Cary, spoke about her children not being on the same schedule for year round schools. She expressed concern that this is the only time in their lives that the children will have together. She noted that there are no School Board members that have a child in the system that will be affected.

********************
School Construction Funds

Commissioner Gardner said he had questions from January that he had requested answers from the Wake County Public Schools System (WCPSS). He has received some response from the schools stating his inquiries were micromanaging and he should not question the school system. There were two spreadsheets which were inconsistent; one from the website and one in the agenda. He was told by Schools staff that the spreadsheet in the agenda package was correct. Project Management Fees were questioned. He said they confirmed that one-third of the $37 million for Project Management Fees may not be needed and may be carried over. One letter stated that $13,036,518 was not planned for use. The question he had was if there were other assumptions in the model that need to be questioned. He suggested that the questions should have been asked by School Board members.

Commissioner Gardner motioned for the Board of Commissioner to immediately freeze the $13 million identified for Project Management Fees and put in an account that can not be accessed without the Board of Commissioners’ approval.

Commissioner Gardner also suggested the Board call for an independent audit/report to review past project management charges to verify that they are proper and relevant to the Board. There should be discussion about Construction versus Employee Costs. He questioned
construction costs that have doubled and employee costs which has remained flat. He asked why has the percentage has been falling rather than rising.

He recommended that the Citizens Facility Advisory Committee (CFAC) compare other districts and how they manage bonds including the Charlotte Mecklenburg program. He said they should compare and assess all costs for providing in-house project management versus out of house (or contracted) project management. He said the WCPSS Project Management Fees and resources should be compared to industry standards. They use Facility Planners and a Project Manager which it is normal to use just one of the two.

Another concern Commissioner Gardner asked to be addressed was a central property data base for the schools. The 2001 Facilities Report called for the School System to create a data base to identify all the properties they own but this has not been addressed.

Commissioner Gardner motioned to put $13 million that the schools agreed has not been earmarked, with the removal from Project Management inventory into an account which could only be used by Board of Commissioner approval. Commissioner Coble seconded the motion.

Commissioner Coble said he had noticed there was originally $13 million budgeted on year round schools and then it was $3 million. The point is there needs to be some basic financial accounting of these numbers. Chairman Gurley stated this would just be setting aside these funds. County Manager David Cooke said the Board could take action to put the $13 million into a reserve account that could not be used without this Board’s approval. Commissioner Gardner said there may be other categories that need to be reviewed and adjusted.

Commissioner Brown asked about this being presented to the public without discussing it with the Board of Education. Commissioner Gardner said he received a response to his questions on Thursday last week and the Chair and Vice Chair met with the School Leadership on Friday. He said if the funds were placed in reserve, a new account, it would be a decision by both boards to utilize the funds. Commissioner Webb asked what the policy would be for accessing those funds. Commissioner Gardner said the funds would be tracked separately and the project management fees would be based on a percentage of the bond. The relationship between employee costs versus project management costs needs to be examined. Commissioner Webb asked about getting an independent group to look into the costs and suggested that maybe an independent audit committee would be a good thing.

Commissioner Gardner said his concern was that the response he received from the Schools was that $35-37 million was over stated in the bond document. He was floored by this response. Commissioner Ward suggested that by putting these funds in an account would also punish the school system with a loss of interest. This would only further alienate the School Board and it dismisses their professional staff. She was opposed to Commissioner Gardner’s motion to set aside the $13 million.
Chairman Gurley said that setting aside these funds would only be reflected on paper. Instead of the 3.5% to manage a project, they identified of 2.5%. The funds, if not needed, would just not be requested. Commissioner Coble spoke in support of save money and finding efficiencies so the money can be stretched even further. Saving these funds could mean building another school. If there is a discrepancy in the numbers, he said the Board should look at them responsibly.

Commissioner Brown asked who would pay for the independent study and if it takes place, would the Board not compare it to the other audits. Commissioner Gardner said that in past audits, project management was not looked at with interest. He suggested that they look at in-house versus out of house and compare to other districts. CFAC did do a study/audit and that could be added to this proposed audit. In a report by for CFAC last week, there was a study where two of the nine of the communities were in North Carolina.

Commissioner Webb said action would lead to the 3rd recent confrontation with the School Board and he did not support the proposed motion. Commissioner Ward said the property management team has been included in the audits. She asked why not have the County financial team and the schools financial team get together and work this out. Commissioner Gardner responded that the County Budget Director does not get enough information from the Schools to do an audit. She’s not comfortable with the back up materials she receives from them.

Commissioner Bryan complemented Commissioner Gardner on his finding the $13 million.

Commissioner Gardner repeated his motion to freeze the $13 million identified as Project Management fees and that these funds be moved to a new Reserve account that can not be accessed without Board approval and would remove those funds from being earmarked for Project Management. Commissioner Coble seconded the motion originally.

Commissioner Webb motioned to table this action until the next meeting because he had not received the response to Commissioner Gardner’s questions from the School Board. Commissioner Brown seconded the motion to table. Commissioner Gardner noted that he had emailed the Schools response to all the commissioners when he received it.

Chairman Gurley called for a vote. Commissioners in favor of the motion to table action on this discussion until the next meeting were: Brown, Ward and Webb. Commissioners opposed to tabling the motion were: Bryan, Coble, Gardner and Gurley. The motion to table action failed.

Chairman Gurley said there is a Joint Meeting with School Board in February on the 21st to discuss public/private partnerships..

Commissioner Gardner re-stated and explained the motion to remove the $13 million from Schools Project Management Fees and place them in a separate fund to be release with Board of Commissioners final approval but both boards would have to approve the use of the funds.

Chairman Gurley said the Board and the Schools should be happy about identifying $13 million that won’t go to a project manager and can be used elsewhere. Commissioner Brown said she raises questions because she feels she is not in the loop since she does not attend the leadership meetings. She asked if this could be added to the joint meeting in February.

Chairman Gurley said that the joint meeting agendas have been agreed upon prior to the meetings but this would be a good topic for a work session. Commissioner Webb expressed that this Board should find the most appropriate way to work with the School Board.

Commissioner Gardner said it is normal for a county, when there are funds identified as extra, going to another account to be held in reserve. He said the School Board agreed that they have $13 million that they do not need on this project. It is just an accounting procedure.

Chairman Gurley called for a vote on the motion to set aside the $13 million removed from the Schools Project Management Funds. Commissioners in favor of this motion were:
Bryan, Coble, Gardner and Gurley. Commissioners opposed to the motion were: Brown, Webb and Ward.

The second item discussed by Commissioner Gardner was to call for an independent audit/report. Commissioner Brown asked who would pay for the audit. Commissioner Gardner said this request could be forwarded to the CFAC and see if this has been covered or needs to be added to their research on facilities. Each of his concerns could be added to the CFAC’s agenda.

Commissioner Ward said that at the retreat, Commissioner Bryan brought up moving the school bond referendum to the Fall of 2007. She said it was discussed at the retreat but no action was taken. However, she stated that by nightfall, the news media projected that the Board had made a decision to move the bond referendum up. She stated that the Board of Commissioners cannot have a bond issue without the Schools first requesting the funds but this item needs to be addressed since the media had give the people the impression a decision had been made. She noted that 53% of the people in Wake County voted to approve the current bond. This could hurt the other bonds under consideration for the fall of 2007 such as open space, Wake Tech and libraries.

Chairman Gurley asked if that was a motion to retract the letter that was sent by the County Manager to the Schools concerning this Board’s discussion? Commissioner Ward said the letter was inappropriate and the two boards need to be fair to each other.

Commissioner Ward motioned, seconded by Commissioner Brown, to vote on moving the school bond issues to the fall of 2007.

Commissioner Cooke said the letter was to share the conversation the Board had at the retreat. It could be discussed at the next work session and then considered for action at the next regular meeting. Commissioner Coble said the letter only explained that the Board had discussion at the table about the possibility to bring a bond forward next fall. The Board did have a discussion but cannot take action unless the Schools make the request. Commissioner Coble stated the Board can not control what the media broadcast.

Commissioner Webb said that he is having trouble with people not understanding that the Board did not vote at the retreat. Commissioner Bryan expressed that he would like to see the bond issue in the fall and it was discussed at the retreat. He believed there was a consensus of the board on this topic at the retreat. He also supported Mr. Cooke in his writing the letter stating the Board generally instructed him to write the letter.

Commissioner Bryan said the Schools need more money and this could complement the Wake Tech, open space and planning for $3 billion in school bonds. It will be hard to get them passed either in 2007 or 2008. It is needed for the County and the School Board needs the same thing. He said he believed a consensus of the Board was in favor of this plan.

Commissioner Brown said she asked specifically about commingling bonds. She asked if this had been done in the past and said she did not believe it was feasible.
Commissioner Bryan said that it sounded like some of the commissioners are backing away from what they discussed on Saturday at the retreat. Commissioner Gardner said he did not believe another billion dollar bond would be supported but they need to stay consistent with the budget model and it may be better to do three or four bonds, open space, schools, options, or whatever the schools want to do. This discussion because of an article quoting Patti Head, School Board Chairman, saying the schools need an additional $80 million for capital needs.

Commissioner Ward said she expressed concerns at the retreat about the debt after visiting with the Rating Agencies. She said she does not support this proposal and may need to discuss further. Commissioner Webb said the Chairman made it clear at the last work session that he was trying to restore funds. Commissioner Webb said he wanted to vote on this because he wanted his position known up front.

Commissioner Ward motioned, seconded by Commissioner Brown, to vote on the decision to move up the schedule for the school bond.

Commissioner Coble motioned, seconded by Commissioner Webb, to table this discussion until the work session on February 12th. The motion passed five to two. Commissioners in favor of the motion were: Brown, Coble, Gardner, Gurley and Webb. Commissioners opposed to the motion were: Ward and Bryan. The motion passed.

Commissioner Bryan offered a motion, seconded by Commissioner Gardner, to support the action of County Manager David Cooke who sent a letter in good faith to the schools informing them of the Board’s discussion. County Attorney ruled that this was not appropriate since it would be reopening the same topic that had just been tabled.
*******************

APPROVAL OF INTER-LOCAL AGREEMENT BETWEEN
WAKE COUNTY PUBLIC SCHOOLS, WAKE COUNTY AND THE
TOWN OF WAKE FOREST FOR A COMMUNITY PARK
AT HERITAGE HIGH SCHOOL

Mr. Mark Edmondson said Wake County Public Schools staff and Wake County staff worked with municipal partners, on properties for schools and parks. There are three and each one is different but similar in nature.

The first request was for an interlocal with Wake County Public Schools, Wake County and the Town of Wake Forest for a community park at Heritage High School. The county paid $200,000 towards the purchase of the site for community park facilities from the community Use of Schools Capital Fund. The County then committed $242,000 for infrastructure development. The Town of Wake Forest has committed $3,600,000 towards the park development. The Town of Wake Forest also participated in the total $450,000 towards the land acquisition. The school will have athletic fields such as ball fields, tennis courts with additional parking.

Specific Action Approved: Commissioner Coble motioned, seconded by Commissioner Gardner, and the Board voted unanimously to approve in concept the Interlocal Agreement with the Wake County Board of Education, Town of Wake Forest and Wake County for the development of community park facilities at Heritage High School; and further; to authorize the county Attorney to make any minor, non-substantive changes to the Interlocal Agreement that may be necessary to respond to approval from other elected bodies.


STATE OF NORTH CAROLINA
    COUNTY OF WAKE
    INTERLOCAL AGREEMENT FOR DEVELOPMENT OF PARK FACILITIES HERITAGE HIGH SCHOOL
    TAX ID# 0266710

    THIS AGREEMENT made and entered into this the ___ day of _______, 200_ by and between the Town of Wake Forest ("Town"), Wake County Board of Education (“Board”) and the County of Wake, North Carolina (“County”).
    WITNESSETH:
    WHEREAS, Board has acquired fee simple title to approximately 110.46 acres of land located on Forestville Road near the intersection of Rogers Road and Forestville Road, Wake Forest, NC which is the proposed site of the new Heritage High School and identified at Wake County PIN #1749.01 47 7665 (“Board Property”), and

    WHEREAS, Town contributed $475,000 towards the acquisition of said property to provide additional acreage for the development and use as a Park, and

    WHEREAS, County contributed $200,000 towards the acquisition of said property to provide acreage for the development and use as a Park, and

    WHEREAS, Town awarded to the Ammons Development Group a credit worth $387,740, as prepaid Town Recreation Fees in conjunction with the Ammons Development Group transfer of 20.46 acres of the 110 acre tract to the Board of Education; and

    WHEREAS, County and Town desire to contribute funding for recreational improvements in addition to the standard high school program, and

    WHEREAS, Town, Board and County desire to enter into an agreement to set forth certain terms and conditions relating to the design, construction, operation, and maintenance of public recreational facilities located on the Board Property, and

    WHEREAS, this Agreement is entered into pursuant to North Carolina General Statutes, Article 20, Part1 of Chapter 160A.

    NOW, THEREFORE, in consideration of the mutual goals and promises contained herein, and the mutual benefits to result therefrom, the parties agree as follows:

    1. The Town, Board and County shall jointly plan for the development of recreational facilities on the property as shown on the attached Exhibit A. It is agreed that the Board shall prepare the master plan for the project to include the following additional improvements to be funded by the Town and/or County:
    2. The Board shall be responsible for the design and construction for the recreational improvements as shown on Exhibit A, including those additional recreational improvements to be funded by County and Town as referenced in Section 1. The County and Town shall be responsible for the additional design costs associated with the recreational improvements requested by the County and/or Town. These additional design costs shall be negotiated and approved by the County and Town prior to commencement of project design.

    3. The County shall contribute $242,000 towards the design and construction costs for the improvements on the property as referenced in Section 1 in accordance with the approved Master Plan as shown on the attached Exhibit A.

    4. The Town shall contribute up to $3,300,000 towards the design and construction costs for the recreational improvements on the property as referenced in Section 1 in accordance with the approved Master Plan as shown on the attached Exhibit A.

    5. The recreational improvements listed in Section 1 shall be bid with breakout pricing by the Board as a part of the contract for school construction. Upon receipt of bids, the County and Town shall review the prices received for the recreational improvements. Based upon the availability of County and Town funding and bids received, the County and Town shall promptly notify the Board regarding the acceptance of the recreational improvement bids or the rejection of the proposed bids.

    6. The Town and Board agree to enter into a Joint Use Agreement supplementing this Agreement which will provide for shared use of specified portions of the Project and set forth the terms and conditions associated with the use, operation and maintenance of the recreational improvements for a period of twenty-five (25) years from the date of execution of this agreement. At the end of the initial term the Town shall have the exclusive option to extend the Town’s use for up to an additional 25-year period so long as the property is not needed for Board purposes and the facility is operated as a school. A Joint Use Agreement shall be executed by all Parties on or before the date of issuance of a certificate of compliance (and a certificate of occupancy, if applicable) for the project by the governmental entity having regulatory jurisdiction.

    7. The Board shall exercise its best efforts to avoid the displacement of or damage to County or Town-funded recreational improvements located on Board property. Should it become necessary for the Board to locate temporarily mobile classroom units or a similar temporary use for a period of less than 5 years on recreational fields or parking areas upon which the County and Town-funded improvements, the Board agrees that, upon ceasing the use of the property and removal of the mobile units, all improvements will be restored at the Board’s expense to their condition prior to the use of the property. In the event of the continuous Board use of areas identified as school program space and for a period of more than 5 years which prohibits the Town’s use of the County or Town-funded improvements on those spaces shall require amendment of this Agreement and shall require the Board to pay the Town and County the depreciated value of said improvement. Should it become necessary for continuous Board use of areas not identified as school program space (i.e., additional baseball field, additional softball field, and two additional multipurpose fields) which prohibits the Town’s continuous use for a period of more than 5 years shall require the amendment or termination of this Agreement and shall require that the Board pay the Town and County the depreciated value of said improvements and the appraised or agreed upon land value. Depreciation of all improvements shall be calculated as straight line depreciation for a 25-year period commencing with the date of this Agreement and the depreciation calculation shall be based on the depreciated value of the facilities at the time the Board initiated its continuous use of the facilities. (i.e., if the Board’s continuous use of the facilities exceeds 5 years in year 8 after the date of the Agreement, the Board shall pay the depreciated value of the facilities from year 3 to year 25). Neither County nor Town is entitled to compensation for any temporary use by the Board beyond the initial 25-year term of this Agreement. Upon determination that the Board’s use during the initial 25-year term of this Agreement has exceeded a continuous 5-year period, the actual amount due the County and Town for depreciation will be promptly calculated based upon the County and Town’s contribution to the cost of said improvements. Payment to County and Town by the Board shall be made within 90 days after said determination. Neither County nor Town are entitled to reimbursement for improvements to parking areas, access drives, or the routine maintenance costs of fields or for outdoor facility improvements.

    8. The term of this Interlocal Agreement shall commence upon execution by all parties hereto and shall conclude twenty five (25) years from execution, or upon expiration of any subsequent Joint Use Agreement authorizing use of some or all of the project’s improvements and recreational areas, unless sooner terminated in accordance with this agreement or subsequent modification hereto.

    9. The Board shall own the land and improvements located on the Board’s property. The execution of this Agreement or a Joint Use Agreement shall not affect the Board’s authority to sell or convey fee simple title to its underlying property. Should a portion of the useable acreage that is part of the school’s program space requirement be sold to any party other than Town or County, the Board shall reimburse to the Town and County the depreciated value of the recreational improvement (i.e., lighting for the school’s program baseball field, softball field, and tennis courts) Reimbursements shall be calculated using straight-line depreciation for a period of 25 years commencing with the date of this Agreement. Should a portion of the useable acreage owned by the Board that is above the school’s program space requirement be sold to any party other than Town or County, the Board shall reimburse the County the depreciated value of the recreational improvement funded by the County plus 11% of the land’s sale price and reimburse the Town the depreciated value of the recreational improvement funded by the Town plus 28% of land’s sale price. Payment will be made based upon the County’s and Town’s contribution towards the original land cost of said improvements and land costs. The Board and County recognize that the Town awarded credit to the Ammons Development Group in exchange for the transfer of the 20.46 acres of land above the 90 acres jointly purchased. Therefore should the Board and County no longer utilize the 90 usable acres, it is agreed that the original 20.46 acres transferred to the Board by the Ammons Development Group shall be transferred to the Town.
    10. This Agreement may be amended by written agreement consented to by all parties. This Agreement and any Joint Use Agreement shall terminate upon a sale or transfer of the property by the Board.

    IN WITNESS WHEREOF, the Boards of the respective Parties have approved this agreement and have caused it to be signed by the Chairman of each Board and attested to by the Secretary or Clerk of that Board, the year and day first written above.
    Attest: _________________________ By: _____________________________
    Secretary Patti Head, Chair

    [SEAL]

    Town of Wake Forest
    Attest: _________________________ By: _____________________________
    Clerk _______________, Mayor


    [SEAL]
    Attest: _________________________ By: _____________________________
    Clerk Tony Gurley, Chairman

    [SEAL]


    Approved As To Form: Approved As To Form:
    ________________________________ __________________________________
    County Attorney Legal Counsel, Board of Education

    Approved As To Form:
    ________________________________
    Town Attorney

    This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act.
    _________________________________
    Finance Officer, Wake County

    APPROVAL OF AN INTER-LOCAL AGREEMENT BETWEEN
    WAKE COUNTY PUBLIC SCHOOLS, WAKE COUNTY AND THE TOWN OF FUQUAY VARINA
    ON BANKS ROAD ELEMENTARY SCHOOL AND THE USE OF COMMUNITY USE
    OF SCHOOLS CAPITAL FUND IN PARTNERSHIP WITH THE TOWN OF FUQUAY

    Mr. Mark Edmondson stated this request was similar to the last request. The Town of Fuquay-Varina approved January 2nd, 2007 the interlocal agreement to purchase approximately 12.93 acres for $15,000 per acre, totaling $193,950 for the Town Park that will include three soccer fields, one baseball field, additional parking and support facilities including restrooms and shelters. The County will contribute $7,500 per acre in open space funds for the land to be designated as open space and the Board of Education would pay the balance of the $796,000 purchase price for the school property. The Board of Education approved the interlocal agreement on January 9, 2007.

    Specific Action Requested: Commissioner Ward motioned, seconded by Commissioner Brown, and the Board voted unanimously to approve the Interlocal Agreement with the Wake County Board of Education, Town of Fuquay-Varina and Wake County for the sale of approximately 12.93 acres of park property to the Town of Fuquay-Varina, for the development of community park facilities as master planned in the Banks Road Elementary School project; and further, approve the use of community use of Schools Capital Fund for up to $250,000 on a matching basis with the Town of Fuquay-Varina for initial community park development.
    .


    STATE OF NORTH CAROLINA

    COUNTY OF WAKE
    INTERLOCAL AGREEMENT FOR PURCHASE AND DEVELOPMENT OF A SCHOOL AND OTHER PUBLIC FACILITIES IN FUQUAY-VARINA, NC

    THIS AGREEMENT made and entered into this the ___ day of _______, 2006, by and between the Town of Fuquay-Varina ("the Town"), Wake County Board of Education (“the Board”) and the County of Wake, North Carolina (“the County”).
    WITNESSETH:

    WHEREAS, the County and Board have jointly purchased approximately 53.06 acres of land located off Chambers Road in the Fuquay-Varina planning area, Wake County, NC, identified as Wake CountyTax ID # 0082683 and a portion of Wake County Tax I.D. # 0232305 (hereinafter “Property”) which will be the site of the Banks Road Elementary School (E-23), a Town of Fuquay-Varina Park and Wake County Open Space; and
    WHEREAS, the Town, the Board, and the County desire to enter into an agreement to set forth certain terms and conditions relating to the design, construction, and ownership of the Property; and
    WHEREAS, this Agreement is entered into pursuant to North Carolina General Statutes, Article 20, Part 1 of Chapter 160A.
    NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

    1. The Property was purchased by the Board and the County for $795,000 or $15,000 per acre, and the Board and County took title to the Property as joint tenants, with the County and Board each providing 50% of the purchase price or $397,500, and 50% of the ordinary closing costs and expenses.

    2. The County and Board jointly funded the purchase of the Property for the construction of a new public school facility, Town Park and preservation of Open Space The funding contributions to be provided by the Town, County and Board and their ownership in the Property, or portion thereof, shall be based upon a Master Plan and final survey, and shall be substantially as follows:
    A. The County agrees to purchase approximately 24.33 acres of the Property and to contribute $182,475.00 or $7,500 per acre towards the land acquisition costs to provide acreage for the preservation of open space to protect the Middle Creek significant natural area.
    B. The Board agrees to purchase approximately 16.95 acres and to contribute $410,475.00 or $24,217 per acre towards the land acquisition cost to provide acreage for the development of an elementary school.
    C. The Town agrees to purchase, and the County and Board agree to sell to the Town, approximately 13.47 acres of the Property as shown on Exhibit A annexed hereto and incorporated herein by reference. Town shall pay to County and Board the sum of $202,050 or $15,000 per acre towards the land acquisition costs to provide acreage for the development of a Town Park, provided the Town, County and Board mutually approve the Master Plan, Joint Use Agreement and Interlocal Development Agreement as referred to hereinbelow.

    1. The Town, County and Board shall jointly plan for the development of the property pursuant to the Master Plan. It is agreed that the Master Plan shall include the following minimum proposed design features: (i) an 800 student capacity elementary school and related program areas (hereinafter “Board’s Obligation”), (ii) a Town Park consisting of active recreation areas including three soccer fields and one baseball field, restrooms/concession building, picnic shelters, playgrounds and other amenities(hereinafter “Town’s Obligation”), and (iii) the preservation of open space to protect the Middle Creek significant natural area (hereinafter “County’s Obligation”).

    2. The Town, County and Board agree to use their best good faith efforts to develop and approve the Master Plan for the Property. The Master Plan shall be submitted to the Town, County and Board for approval. Upon approval of the Master Plan, the Town, County and Board shall divide the Property as provided hereinabove, and prepare and record a subdivision map evidencing such division of ownership.

    The County and Board shall remain the owners of the Property as joint tenants until all parties hereto have approved the Master Plan.

    3. Concurrently with the development, completion and approval of the Master Plan by the Town’s Council, the County’s Board of Commissioners, and the Board, the parties hereto agree to use their best good faith efforts to develop, complete and approve a Joint Use Agreement which will provide for control, use, operation and maintenance of specified portions of the Property and shared uses.

    The County and Board shall remain the owners of the Property as joint tenants until all parties have approved a Joint Use Agreement.

    4. Concurrently with the development, completion and approval of the Master Plan and Joint Use Agreement as provided hereinabove, the parties hereto agree to use their best good faith efforts to enter into an Interlocal Development Agreement, consistent with the terms of this Agreement, which provides for the apportionment of costs and funding of the design, site development, and construction costs of the Property based upon the parties’ respective obligations.

    The County and Board shall remain the owners of the Property as joint tenants until all parties have approved an Interlocal Development Agreement.

    5. Upon the parties approval of a Master Plan, a Joint Use Agreement, and an Interlocal Development Agreement, the County and Board shall: (i) convey to the Board aforesaid acreage for the construction of its facilities in fee simple, (ii) convey to the Town the aforesaid acreage for the construction of park and recreational facilities in fee simple in exchange for Town’s payment of the purchase price as set forth in Paragraph 2.C. above, and (iii) convey to the County the aforesaid acreage for the preservation of open space to protect the Middle Creek significant natural area in fee simple. In the event that the Board, County and Town do not develop and approve a Master Plan, a Joint Use Agreement, and an Interlocal Development Agreement as provided herein, then the Board and County agree to divide the property with the Board receiving title to that portion of the Property needed for the elementary school site and all improvements thereon, and with the County receiving title to the remainder of the Property.

    6. The Town, County and Board acknowledge the requirement for Board’s priority use of Board property and all improvements located on the subject Board property . The Board shall have administrative control of all Board property and improvements thereon.

    7. All parties to this Agreement acknowledge that this Agreement does not and is not intended in any way to diminish the Board’s authority to select a school site, choose building designs, establish school programs, own the school site in it’s name alone and operate its schools independently in its discretion.

    8. To the extent allowable by law, the Town, County and Board shall mutually agree to language, satisfactory to their respective legal counsel, indemnifying each participant as to liability issues.

    This agreement may be amended by written agreement consented to by all parties. The term of this Agreement shall commence upon execution by all parties hereto and shall conclude one (1) year from execution of this Agreement, unless sooner terminated in accordance with any subsequent modification hereto (it being contemplated by the parties hereto that the performances of each party herein set out can be completed within said one year).

    IN WITNESS WHEREOF, the Boards or Council of the respective parties have approved this Agreement and have caused it to be signed by the Chair of each Board or Council and attested to by the Secretary or Clerk of that Board, the year and day first written above.
    (signatures on the following page)

    Attest _________________________ By: _____________________________
    Secretary Patti Head, Chair
    [SEAL]
    Town of Fuquay-Varina, Mayor
    Attest: _________________________ By: _____________________________
    Clerk John W. Byrne, Mayor
    [SEAL] Attest: _________________________ By: _____________________________
    Clerk Tony Gurley, Chairman
    [SEAL]
    Approved As To Form: Approved As To Form:
    ________________________________ __________________________________
    County Attorney Legal Counsel, Board of Education

    Approved As To Form:
    ________________________________
    Town Attorney
    This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act.
    _________________________________
    Finance Officer, Wake County

    ******************

    APPROVAL OF AN INTER-LOCAL AGREEMENT BETWEEN
    WAKE COUNTY PUBLIC SCHOOLS, WAKE COUNTY AND THE CITY OF RALEIGH ON SCHOOL SITE, E-24, AND THE USE OF COMMUNITY USE OF SCHOOLS CAPITAL FUND
    IN PARTNERSHIP WITH THE CITY OF RALEIGH


    Mr. Edmondson stated that the City of Raleigh is willing to partner with the county for the additional property. He has been working with Board of Education staff and going through the master planning process. It is located on Leesville Church Road, just south of 540. Helps with transportation.


    Specific Action Approved: Commissioner Webb motioned, seconded by Commissioner Brown, the Board voted unanimously to:
    1) Approve in concept the Interlocal Agreement with the Wake County Board of Education, City of Raleigh and Wake County for the master planning, terms of subdivision and conveyance for the E-24 Elementary School project for community park facilities; and

    2) Approve the use of up to $250,000 from the Community Use of Schools Capital Fund, for community park infrastructure development with the City of Raleigh; and

    3) Authorize the County Attorney to make any minor, non-substantive changes to the Interlocal Agreement that may be necessary to respond to approvals from other elected bodies.

    STATE OF NORTH CAROLINA

    COUNTY OF WAKEINTERLOCAL AGREEMENT FOR PURCHASE AND DEVELOPMENT OF A SCHOOL AND OTHER PUBLIC FACILITIES IN RALEIGH, NC
      THIS AGREEMENT made and entered into this the ___ day of _______, 2007, by and between the City of Raleigh ("the City"), Wake County Board of Education (“the Board”) and the County of Wake, North Carolina (“the County”).
      WITNESSETH:

      WHEREAS, the Board intends to fund the purchase of approximately 33.909 acres of land located near the intersection of Leesville and Strickland Roads, identified as Wake County Pin # 0778851532, Pin # 0778952390 and Pin #0778851024 (“the property”) in northwest Raleigh (Exhibit A) which will be the site of the E-24 Elementary School; and

      WHEREAS, the City desires to purchase a portion of the 33.909 acre property from the Board for a future neighborhood park; and
      WHEREAS, the County desires to contribute $200,000 towards the City’s purchase of the neighborhood park and contribute up to $250,000 towards initial planning and recreation development (recreation infrastructure contribution) of neighborhood park facilities on the 33.909 acres; and

      WHEREAS, the City, the Board, and the County desire to enter into an agreement to set forth certain terms and conditions relating to the purchase of the Property and the design, construction, and ownership of the property; and

      WHEREAS, this Agreement is entered into pursuant to North Carolina General Statutes, Article 20, Part 1 of Chapter 160A.

      NOW, THEREFORE, in consideration of the mutual goals and promises contained herein, and the mutual benefits to result therefrom, the parties agree as follows:

      1. The Board will initially purchase the 33.909 acre property for $3,500,000 or $103,215 per acre (Purchase Amount), and the Board will take title to the property. If required for school and neighborhood park access, the City and Board agree to the acquisition of additional property as may be needed from the adjacent “Talton Property” Pin #0778856958, Pin #0778951974, Pin #0778957716 at the negotiated per acre cost with the Board responsible for any school portion and the City for any park portion. City, County and Board agree that closing on the purchase of the property will be conducted by Board of Education counsel or by a licensed attorney selected by Board of Education as closing Attorney.

      2. The City, County and Board shall jointly plan for the development of the property and agree to make reasonable good faith efforts to approve a Conceptual Master Plan for the property. It is agreed that the master plan may include the following proposed design features: an 800 student capacity elementary school and related program areas, a neighborhood park consisting of active and passive recreation areas that may include open play fields, restrooms, picnic shelters, playgrounds, trails, parking facilities and other amenities, and the preservation of open space and natural areas. It is agreed that the Board, City and the County shall collaboratively develop the Conceptual Master Plan. The Board shall be responsible for the preparation of the Conceptual Master Plan and that the County shall be responsible for the design costs associated with the planning for the neighborhood park and any park facilities beyond the program of the Board. The County will allocate funding for the design of additional neighborhood park facilities from the $250,000 recreation contribution to be prepared by McNeely Associates, P.A.

      3. The Conceptual Master Plan shall be presented to the City Council, County Commissioners and Board of Education for approval. Upon approval of the Conceptual Master Plan, the City, County and Board shall mutually agree upon a division of the property. In the event a roadway serves as a boundary element, the parcel boundary line shall be located in the centerline thereof, unless the parties agree to otherwise. The Board shall continue to own the 33.909 acre parcel until all parties have approved a Conceptual Master Plan prior to the division of property.

      4. Upon approval by City, County, and Board of the Conceptual Master Plan, the City agrees to prepare a subdivision map and purchase approximately 11 to 15 acres for a future neighborhood park from the Board at a mutually agreed upon price in an amount to be determined as described below. The Board and the City agree that following the subdivision of the property, a value will be established for each tract and for the entire 33.09 acre tract based upon the approved conceptual master plan by an independent certified MAI appraiser. The cost of the appraisal shall be shared equally between the Board and the City. The Board and City shall mutually select and agree upon an appraiser to complete the assignment. The final apportionment of the acquisition cost for City and Board will be based upon the appraised value of each of the tracts created by the subdivision in accordance with the following formula:

      City Share = Appraised value of Raleigh owned tract X Purchase Amount
      Total Appraised Value of 33.09 Acres
      Board Share = Appraised Value of Board owned tract X Purchase Amount
      Total Appraised Value of 33.09 Acres

      The Board shall convey to the City acreage for the neighborhood park in fee simple. The County will contribute an amount not to exceed $200,000 to the City towards the purchase of the 11-15 acre neighborhood park from the Board.

      5. Upon approval of the Conceptual Master Plan and subdivision of the property, the City, County and Board shall mutually agree upon neighborhood park infrastructure improvements that may be appropriately constructed during the elementary school construction on Board and/or City property. It is understood by the City, County and Board that the Board shall be responsible for all costs associated with the school program. It is further understood by all parties that shared recreation infrastructure costs such as roads, utilities or parking facilities may be paid for at the initial construction phase of the Board from the County funding up to $250,000. Any remaining funds from the County $250,000 may be used for construction of parks and recreation facilities in a 50/50 matching basis with the City. The County shall be responsible for the additional design costs associated with the recreational improvements to be funded by the County and City. These additional design costs shall be negotiated and approved by the County and City prior to commencement of project design and be allocated from the $250,000 County recreation contribution and timely paid to the Board so as not to delay school design and construction schedules.

      6. The neighborhood recreational improvements referenced in Section 5 shall be bid with breakout pricing by the Board as a part of the contract for school construction. Upon receipt of bids, the County and City shall review the prices received for the recreational improvements. Based upon the availability of County and City funding and bids received, the County and City shall promptly notify the Board regarding the acceptance of the recreational improvement bids or the rejection of the proposed bids.

      7. Upon completion of the Conceptual Master Plan, subdivision of the property and approval by the City, County, and Board; the City and Board shall agree to make reasonable good faith efforts to enter into a Joint Use Agreement which will provide for use, operation and maintenance of specified portions of the school property and shared use for at least a period of twenty-five (25) years from the date of execution of this agreement. At the end of the initial term, the City shall have the exclusive option to extend the City’s use for up to at least an additional 25 year period so long as the property is not needed for board purposes and the facility is operated as a school.

      8. The Board shall own the land and the school improvements located on the Board’s property except as provided in any subsequent amendment to this agreement. The execution of this Agreement or a Joint Use Agreement shall not affect the Board’s authority to sell or convey fee simple title to it’s underlying property. Should the property of the Board be sold on which improvements have been made by the County and City, the Board shall reimburse the County and City the depreciated value of recreational improvements made to the property by the County and City based upon the County’s and City’s contribution to the cost of said improvements. (Straight-line depreciation for a 25 year period commencing with the date of this Agreement).

      9. The term of this Interlocal Agreement shall commence upon execution by all parties hereto and shall conclude twenty five (25) years from execution of this Agreement, or upon expiration of any subsequent Joint Use Agreement authorizing Board and City to use some or all of the Project’s improvements and recreational areas, unless sooner terminated in accordance with this agreement or subsequent modification hereto.

      10. All parties to this Agreement acknowledge that this Interlocal Agreement does not and is not intended in any way to diminish the Board’s authority to select a school site, choose building designs, establish school programs, own the school site in it’s name alone and operate its schools independently in its discretion.

      1. To the extent allowable by law, the City, County and Board shall mutually agree to language indemnifying each participant as to liability issues.
      2. This Agreement may be amended by written agreement consented to by all parties.

      This Agreement and any Joint Use Agreement shall terminate upon a sale or transfer of the property by the Board.

      IN WITNESS WHEREOF, the Boards of the respective Parties have approved this agreement and have caused it to be signed by the Chairman of each Board and attested to by the Secretary or Clerk of that Board, the year and day first written above.

      Wake County Board of Education
      Attest _________________________ By: _____________________________
      Secretary Patti Head, Chair
      [SEAL]
      City of Raleigh, Mayor
      Attest: _________________________ By: _____________________________
      Clerk Charles C. Meeker
      [SEAL]
      Wake County Board of Commissioners
      Attest: _________________________ By: _______________________________
      Clerk Tony Gurley, Chairman
      [SEAL]
      Approved As To Form: Approved As To Form:
      ________________________________ __________________________________
      County Attorney Legal Counsel, Board of Education

      Approved As To Form:
      ________________________________
      City Attorney

      This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act.
      _________________________________
      Finance Officer, Wake County

      ******************

      AWARD OF CONTRACT FOR RECONSTRUCTION
      OF A PORTION OF THE EIGHTH FLOOR
      OF THE COURTHOUSE

      Mr. Phil Stout said this is part of the county’s 30 year master plan. This space was planned to be renovated and serve the citizens for 25 years and then the Justice Center is the second phase in the plan. This building was built in the mid 1960’s. They will be moving everything off the floor while renovations are being done.


      Specific Action Approved: Commissioner Webb motioned, seconded by Commissioner Brown, the Board voted unanimously to award a contract for reconstruction of approximately 14,000 sq. ft. of the eighth floor of the Courthouse to Quality Builders of Raleigh NC in the amount of $1,480,000.

      PROJECT: Reconstruction of the Eighth Floor of the Wake County Courthouse
      CONTRACT: Single Prime General

      DATE: January 11, 2007
      TIME: 3:00 PM
    CONTRACTOR
    LICENSE NO.ADDENDAMBE DOCUMENTSBID BONDLIST SUBS BASE BID
    Quality Builders, Inc. of Raleigh
    716 St Mary’s St.
    PO Box 12461
    Raleigh, NC 27605
    6571
    1&2
    YES
    5%
    YES
    $ 1,480,000.00
    D. S. Simmons, Inc.
    112 W. Chestnut St.
    PO Box 287
    Goldsboro, NC 27533
    7651
    1&2
    YES
    5%
    YES
    $ 1,506,000.00
    Lomax Construction, Inc.
    PO Box 35169
    Greensboro, NC 27425
    37571
    1&2
    YES
    5%
    YES
    $ 1,535,000.00
    This is to certify that the bids tabulated herein were publicly opened and read on the 11 day of January, 2007 in
    Room 926, 9th Floor of the Wake County Office Building, 336 Fayetteville Street Mall, Raleigh, NC, and that all
    said bids were accompanied by certified checks or bidder's bond except as otherwise noted.

    ____________________________________
    Phillip D. Stout
    Director, Facilities Design & Construction

    ARCHITECT: Kurt Eichenberger


    ******************

    PURCHASE OF 1.48 ACRES ON BETHANY CHURCH ROAD
    FOR WAKE COUNTY EMS FACILITY

    Mr. Mike Aull reported that this request was for the purchase of 1.48 acres located on Bethany church Road from Sara a. Robertson for $60,000 for the Wake County EMS facility. There will be sleeping quarters and EMS vehicle base. The need if for building expansion to improve the facility. Ms. Robertson did not have the property for sell but was willing to sell for this use.

    Specific Action Approved: Commissioners Brown motioned, seconded by Commissioner Coble, the Board voted unanimously to approve the purchase of 1.48 acres located on Bethany Church Road from Sara A. Robertson for $60,000.
    ******************

    ACCEPTANCE OF $13,340 AND APPROVAL OF 1.0 FTE FOR
    WAKE COUNTY ECONOMIC SERVICES PARTNERSHIP WITH WAKEMED

    Mr. Jack Rogers said they have co-located staff at Wake Med in order to help process insurance and determine eligibility for Medicaid as well as other related services. WakeMed is requesting an additional administrative support position with an anticipated yearly salary and fringes of $40,017 of which WakeMed and other state and federal funds would pay 50% of the expense.

    Specific Action Approved: Commissioner Bryan motioned, seconded by Commissioner Ward, and the Board voted unanimously to accept up to $6,670 from WakeMed and $6,670 in state and federal funds and establish 1.0 FTE administrative assistant position to be located at WakeMed.

    ******************

    ACCEPTANCE OF $150,000 IN GRANT FUNDS FROM THE
    ANNIE E CASEY FOUNDATION, $186,700 IN FEDERAL AND STATE FUNDS
    AND APPROVAL OF 3.5 FTEs TO ENHANCE THE
    FAMILY TO FAMILY INITIATIVE

    Mr. Bob Sorrels presented the request for the Board to accept the grant funding from the Annie E. Casey Foundation for 3.5 fulltime employees (FTEs) and have Wake County be a national model site. The original acceptance was to help recruit foster families. These additional positions would allow them to gather data and do research. The positions will be abolished when the grant funding ends.

    Specific Action Approved: Commissioner Gardner motioned, seconded by Commissioner Bryan, and the Board voted unanimously to approve the establishing 3.5 FTEs and accepts $150,000 in grant funds from the Annie E. Casey Foundation and $186,700 in federal and state funds to support the Family to Family initiative.

    ******************

    APPROVAL OF REVISED NON-PROFIT GRANT FUNDING PROCESS

    Mr. Matt Roylance stated that the proposal for the non-profit grant funding process was presented on January 16th at the work session. He provided a short presentation on the process. It is an annual competitive process with a review panel of staff. The staff panel reviews and scores applications and award funding based on application approval. Criteria for the grant award is based on the program’s community impact, a good audit and an insurance requirement will be addressed.

    Specific Action Approved: Commissioner Ward motioned, seconded by Commissioner Brown, and the Board approved unanimously the revised non-profit grant funding process.

    Commissioner Bryan complemented Mr. Roylance on his presentation and work done to come up with this plan. Commissioner Ward stated that this is a complete program and was excellently done.
    ******************
    RESOLUTIONS AUTHORIZING THE ISSUANCE AND SALE OF $555,000,000
    GENERAL OBLIGATION BONDS AND DESIGNATING THE SELECTION OF THE
    FINANCING TEAM OF PROFESSIONALS


    Ms. Melinda Canady, Finance Director, stated this is a request to authorize and issue the sale of general obligation bonds for:

    Schools $500,000,000 ($225 million 10/07/2003 bond referendum

    $275 million 11/07/2006 bond referendum)

    Libraries $16,000,000 (10/07/2003 bond referendum)

    Open Space $26,000,000 (11/02/2004 bond referendum)

    Wake Tech $13,000,000 (11/02/2004 bond referendum)


    Today, the Board is asked to approve resolutions providing for the issuance (sale) of $555 million general obligation bonds.

    In November of 2006 the County sent RFP’s for services and selected the financing team in December (communicated to Board in December weekly memo). Today you will officially select this team in connection with the variable rate financing.

    Specific Action Approved: Commissioner Bryan motioned, seconded by Commissioner Ward, to approve the following resolutions authorizing the issuance and sale of the general obligation bonds and designating the finance team.

    RESOLUTIONS AUTHORIZING THE ISSUANCE AND SALE OF $555,000,000
    GENERAL OBLIGATION BONDS AND DESIGNATING THE SELECTION OF THE
    FINANCING TEAM OF PROFESSIONALS

    EXTRACT FROM MINUTES OF MEETING
    BOARD OF COMMISSIONERS OF
    THE COUNTY OF WAKE, NORTH CAROLINA

    The Board of Commissioners for the County of Wake, North Carolina, met in regular session in the Commissioners’ Meeting Room in the Wake County Courthouse in Raleigh, North Carolina, the regular place of meeting, at 2:00 p.m., on February 5, 2007, with Tony Gurley, Chairman, presiding. The following Commissioners were:

    PRESENT: Commissioners Lindy Brown, Joe Bryan, Paul Coble, Kenn Gardner, Betty Lou Ward and Harold Webb.
    ABSENT: ___-None. ________________________________________________________________
    ALSO PRESENT: David Cooke, County Manager, Michael Ferrell, County Attorney and Susan J. Banks, Clerk to the Board

    * * * * *

    The Chairman introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title:

    RESOLUTION PROVIDING FOR THE ISSUANCE OF
    $455,000,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2007

    BE IT RESOLVED by the Board of Commissioners (the “Board”) of the County of Wake, North Carolina (the “Issuer”):

    Section 1. The Board has determined and does hereby find, declare and represent:
    (a)(1) That an order authorizing not exceeding $450,000,000 School Bonds (the “2003 School Bond Order”) was adopted by the Board for the County on July 21, 2003, which order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on October 7, 2003.
    (a)(2) That $225,000,000 of said School Bonds have been issued pursuant to said 2003 School Bond Order, that the Issuer expects that approximately $220,000,000 General Obligation Commercial Paper Bond Anticipation Notes of the Issuer will be outstanding on March 8, 2007 which were issued pursuant to said 2003 School Bond Order in anticipation of the receipt of the proceeds of the sale of a like amount of School Bonds issued pursuant to said 2003 School Bond Order, and that it is necessary to issue at this time $225,000,000 of School Bonds pursuant to the 2003 School Bond Order in accordance with the provisions of Section 2 of this resolution.
    (a)(3) That the maximum period of usefulness of the facilities to be financed with the proceeds of said School Bonds to be issued pursuant to the 2003 School Bond Order is estimated as a period of 40 years from March 1, 2007, the date of the School Bonds authorized hereby, as hereinafter provided, and that such period expires on March 1, 2047.
    (b)(1) That an order authorizing not exceeding $970,000,000 School Bonds (the “2006 School Bond Order”) was adopted by the Board for the County on August 21, 2006, which order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on November 7, 2006.
    (b)(2) That none of the School Bonds authorized by the 2006 School Bond Order have been issued, that no notes have been issued in anticipation of the receipt of the proceeds of the sale of a like amount of School Bonds issued pursuant to the 2006 School Bond Order, and that it is necessary to issue at this time $175,000,000 of School Bonds pursuant to the 2006 School Bond Order in accordance with the provisions of Section 2 of this resolution.
    (b)(3) That the maximum period of usefulness of the facilities to be financed with the proceeds of said School Bonds to be issued pursuant to the 2006 School Bond Order is estimated as a period of 40 years from March 1, 2007, the date of the School Bonds authorized hereby, as hereinafter provided, and that such period expires on March 1, 2047.
    (c)(1) That an order authorizing not exceeding $35,000,000 Library Facilities Bonds (the “Library Facilities Bond Order”) was adopted by the Board for the County on July 21, 2003, which order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on October 7, 2003.
    (c)(2) That $17,000,000 of the Library Facilities Bonds have been issued, that the Issuer expects that approximately $12,000,000 General Obligation Commercial Paper Bond Anticipation Notes of the Issuer will be outstanding on March 8, 2007 which were issued pursuant to said Library Facilities Bond Order in anticipation of the receipt of the proceeds of the sale of a like amount of Library Facilities Bonds, and that it is necessary to issue at this time $16,000,000 of said Library Facilities Bonds in accordance with the provisions of Section 2 of this resolution.
    (c)(3) That the maximum period of usefulness of the facilities to be financed with the proceeds of said Library Facilities Bonds to be issued is estimated as a period of 40 years from March 1, 2007, the date of the Library Facilities Bonds authorized hereby, as hereinafter provided, and that such period expires on March 1, 2047.
    (d)(1) That an order authorizing not exceeding $40,000,000 Community College Bonds (the “Community College Bond Order”) was adopted by the Board for the County on August 16, 2004, which order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on November 2, 2004.
    (d)(2) That none of the Community College Bonds have been issued, that the Issuer expects that approximately $6,000,000 General Obligation Commercial Paper Bond Anticipation Notes of the Issuer will be outstanding on March 8, 2007 which were issued pursuant to said Community College Bond Order in anticipation of the receipt of the proceeds of the sale of a like amount of Community College Bonds, and that it is necessary to issue at this time $13,000,000 of said Community College Bonds in accordance with the provisions of Section 2 of this resolution.
    (d)(3) That the maximum period of usefulness of the facilities to be financed with the proceeds of said Community College Bonds to be issued is estimated as a period of 40 years from March 1, 2007, the date of the Community College Bonds authorized hereby, as hereinafter provided, and that such period expires on March 1, 2047.
    (e)(1) That an order authorizing not exceeding $26,000,000 Open Space Bonds (the “Open Space Bond Order”) was adopted by the Board for the County on August 16, 2004, which order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on November 2, 2004.
    (e)(2) That none of the Open Space Bonds have been issued, that the Issuer expects that approximately $21,000,000 General Obligation Commercial Paper Bond Anticipation Notes of the Issuer will be outstanding on March 8, 2007 which were issued pursuant to said Open Space Bond Order in anticipation of the receipt of the proceeds of the sale of a like amount of Open Space Bonds, and that it is necessary to issue at this time $26,000,000 of said Open Space Bonds in accordance with the provisions of Section 2 of this resolution.
    (e)(3) That the maximum period of usefulness of the facilities to be financed with the proceeds of said Open Space Bonds to be issued is estimated as a period of 40 years from March 1, 2007, the date of the Open Space Bonds authorized hereby, as hereinafter provided, and that such period expires on March 1, 2047.

    Section 2. Pursuant to the 2003 School Bond Order, there shall be issued bonds of the Issuer in the aggregate principal amount of $225,000,000. Pursuant to the 2006 School Bond Order, there shall be issued bonds of the Issuer in the aggregate principal amount of $175,000,000. Pursuant to the Library Facilities Bond Order, there shall be issued bonds of the Issuer in the aggregate principal amount of $16,000,000. Pursuant to the Community College Bond Order, there shall be issued bonds of the Issuer in the aggregate principal amount of $13,000,000. Pursuant to the Open Space Bond Order, there shall be issued bonds of the Issuer in the aggregate principal amount of $26,000,000. The Bonds issued pursuant to this Section 2 shall be designated “Public Improvement Bonds, Series 2007” and dated March 1, 2007 (the “Bonds”). The Bonds shall be stated to mature (subject to the right of prior redemption as hereinafter set forth) annually, March 1, $23,000,000 2009 through 2020, inclusive, $39,000,000 2021 and $35,000,000 2022 through 2025, inclusive and shall bear interest at a rate or rates to be determined by the Local Government Commission of North Carolina at the time the Bonds are sold, which interest to the respective maturities thereof shall be payable on September 1, 2007 (or such other date as is designated by the County Manager or the Finance Director in connection with the sale of the Bonds) and semiannually thereafter on March 1 and September 1 of each year (or other semiannual dates designated by the County Manager or the Finance Director in connection with the sale of the Bonds) until payment of such principal sum.

    Section 3. Each Bond shall bear interest from the interest payment date next preceding the date on which it is authenticated unless it is (a) authenticated upon an interest payment date in which event it shall bear interest from such interest payment date or (b) authenticated prior to the first interest payment date in which event it shall bear interest from its date; provided, however, that if at the time of authentication interest is in default, such Bond shall bear interest from the date to which interest has been paid.
    The principal of and the interest and any redemption premium on the Bonds 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.
    Section 4. The Bonds initially will be issued by means of a book-entry system with no physical distribution of bond certificates to be made except as hereinafter provided. Initially one fully registered bond certificate for each stated maturity of the Bonds in the aggregate principal amount of the Bonds of such stated maturity and registered in the name of the Securities Depository Nominee (defined below), a nominee of the Securities Depository (defined below), will be issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system of the Securities Depository will evidence positions held in the Bonds by the Securities Depository’s participants, with beneficial ownership of the Bonds in the principal amount of $5,000 or any whole multiple thereof being evidenced in the records of such participants. Transfers of beneficial ownership will be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants.
    The Issuer and the Bond Registrar will recognize the Securities Depository Nominee or the Securities Depository, as the case may be, while the registered owner of the Bonds, as the owner of the Bonds for all purposes, including payments of principal of, and redemption premium, if any, and interest on the Bonds, notices and voting. The principal of and any redemption premium on each Bond shall be payable to the Securities Depository Nominee or any other person appearing on the registration books of the Issuer hereinafter provided for as the registered owner of such Bond or his registered assigns or legal representative at the office of the Bond Registrar mentioned hereinafter or such other place as the Issuer may determine upon the presentation and surrender thereof as the same shall become due and payable. Payment of the interest on each Bond shall be made by the Bond Registrar on each interest payment date to the registered owner of such Bond (or the previous Bond or Bonds evidencing the same debt as that evidenced by such Bond) at the close of business on the record date for such interest, which shall be the 15th day (whether or not a business day) of the calendar month next preceding such interest payment date, by check mailed to such person at his address as it appears on such registration books or, during the continuation of the book-entry system, by such other method of payment as the Issuer may determine to be necessary or advisable with the concurrence of the Securities Depository. Transfer of principal and interest and any redemption premium payments to participants of the Securities Depository will be the responsibility of the Securities Depository, and transfer of principal and interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. Such transfers of interest by the Securities Depository and by such participants and other nominees of such beneficial owners may be made to the owners of Bonds shown on their records on a date on or after said record date for such interest, pursuant to rules and procedures established by the Securities Depository and its participants. The Issuer and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing records maintained by the Securities Depository, its participants or persons acting through such participants.
    In the event that (a) any Securities Depository determines not to continue to act as securities depository for the Bonds or (b) the Finance Director of the Issuer determines to discontinue the book-entry system with such Securities Depository, the Issuer may identify another qualified Securities Depository to replace the predecessor Securities Depository and, in such event, the Issuer will make arrangements with the predecessor Securities Depository and such other Securities Depository to effect such replacement and deliver replacement Bonds registered in the name of such other depository or its nominee in exchange for the outstanding Bonds, and all references in this resolution to any predecessor Securities Depository or Securities Depository Nominee shall thereupon be deemed to mean such other depository or its nominee. If the Issuer does not identify another qualified Securities Depository to replace the predecessor Securities Depository, the Issuer will deliver replacement Bonds in the form of fully registered certificates in the denomination of $5,000 or any whole multiple thereof (“Certificated Bonds”) in exchange for the outstanding Bonds as required by the predecessor Securities Depository and others. Upon the request of the Securities Depository, the Issuer may also deliver one or more Certificated Bonds to any participant of the Securities Depository in exchange for Bonds credited to its account with the Securities Depository. The Issuer and the Bond Registrar shall be entitled to rely upon the instructions of the Securities Depository as to the appropriate parties entitled to receive Certificated Bonds.
    For purposes of this resolution “Securities Depository” means The Depository Trust Company, New York, New York, or other recognized securities depository selected by the Issuer, which maintains the book-entry system in respect of the Bonds authorized by this resolution, and shall include any substitute for or successor to the securities depository initially acting as Securities Depository. For purposes of this resolution “Securities Depository Nominee” means, as to any Securities Depository, such Securities Depository or the nominee, if any, of such Securities Depository in whose name the Bond certificates shall be registered on the registration books maintained by the Bond Registrar during the continuation with such Securities Depository of the book-entry system authorized by this resolution. The Depository Trust Company, New York, New York, is hereby appointed as the initial Securities Depository, and Cede & Co., a nominee thereof, is hereby appointed as the initial Securities Depository Nominee for the Bonds.
    Unless indicated otherwise, the provisions of this resolution that follow shall apply to all Bonds issued or issuable hereunder, whether initially or in replacement thereof.
    Section 5. The Bonds shall be executed with the manual or facsimile signatures of the Chairman or Vice Chairman of the Board and the Clerk to the Board, and the seal or a facsimile of the seal of the Issuer shall be impressed or imprinted, as the case may be, on the Bonds.
    The certificate of the Local Government Commission of North Carolina shall be endorsed on all Bonds and shall bear the manual or facsimile signature of the Secretary of said Commission or on behalf of the Secretary by a Designated Assistant and the certificate of authentication of the Bond Registrar to be endorsed on all Bonds shall be executed as provided hereinafter.
    In case any officer of the Issuer or the Local Government Commission of North Carolina whose manual or facsimile signature shall appear on any Bonds shall cease to be such officer before the delivery of such Bonds such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery, and any Bond may bear the manual or facsimile signatures of such persons as at the actual time of the execution of such Bond shall be the proper officers to sign such Bond, although at the date of such Bond such persons may not have been such officers.
    No Bond 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 Bond Registrar of the certificate of authentication endorsed thereon.
    Section 6. The Bonds and the endorsements thereon shall be in substantially the following form:

    [Front Side of Printed Bonds]
    No. R-______ $_____________
    United States of America
    State of North Carolina

    COUNTY OF WAKE, NORTH CAROLINA

    General Obligation Public Improvement Bonds, Series 2007


    MATURITY DATE INTEREST RATE CUSIP

    _____________ __________________ ____________

    The County of Wake, North Carolina (the “Issuer”), is justly indebted and for value received hereby promises to pay to _______________________________________________
    or registered assigns or legal representative on the date specified above (or earlier as hereinafter referred to), upon the presentation and surrender hereof, at the office of the Finance Director of the Issuer, currently at Wake County Office Building, 336 Fayetteville Street Mall, 9th Floor, Raleigh, North Carolina 27602 (the “Bond Registrar”), the principal sum of ___________________________________________ DOLLARS and to pay interest on such principal sum from the date hereof or from the March 1 or September 1 next preceding the date of authentication to which interest shall have been paid, unless such date of authentication is a March 1 or September 1 to which interest shall have been paid, in which case from such date, such interest to the maturity hereof being payable on September 1, 2007 and semiannually thereafter on September 1 and March 1 in each year, at the rate per annum specified above, until payment of such principal sum. The interest so payable on any such interest payment date will be paid to the person in whose name this Bond (or the previous Bond or Bonds evidencing the same debt as that evidenced by this Bond) is registered at the close of business on the record date for such interest, which shall be the 15th day (whether or not a business day) of the calendar month next preceding such interest payment date, by check mailed to such person at his address as it appears on the bond registration books of the Issuer. Both the principal of and the interest on this Bond 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 Issuer are hereby irrevocably pledged.

    [Printed Bonds are to include the following paragraph]

    ADDITIONAL PROVISIONS OF THIS BOND ARE SET FORTH ON THE REVERSE HEREOF AND SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
    [Reverse Side of Printed Bonds]

    This Bond is one of an issue of Bonds designated General Obligation Public Improvement Bonds, Series 2007” (the “Bonds”) and issued by the Issuer for the purpose of providing funds, with any other funds necessary, for the acquisition, construction and equipping of new school facilities and the improvement or expansion of existing school facilities in Wake County/the acquisition, construction and equipping of criminal justice facilities in Wake County/the acquisition, construction, equipping and furnishing of modifications, renovations, additions, improvements and extensions to existing library facilities and/or one or more new buildings or other library facilities in Wake County/the acquisition of real property by the Issuer and the improvement of such real property or any other Issuer-owned real property for the conservation of open space, the protection of water quality, wildlife habitats, scenic areas and natural areas suitable for recreational or other public uses in Wake County. This Bond is issued under and pursuant to The Local Government Bond Act, as amended, Article 7, as amended, of Chapter 159 of the General Statutes of North Carolina, bond orders adopted by the Board of Commissioners (the “Board”) of the Issuer which have taken effect as provided by law, and a resolution duly passed by the Board of the Issuer (the “Resolution”).
    The Bonds maturing prior to March 1, 201__ are not subject to redemption prior to maturity. The Bonds maturing on March 1, 201__ and thereafter may be redeemed, at the option of the Issuer, from any moneys that may be made available for such purpose, either in whole or in part on any date not earlier than March 1, 201__, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, together with interest accrued thereon to the date fixed for redemption.
    If less than all of the Bonds of any one maturity shall be called for redemption, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot in such manner as the Issuer in its discretion may determine; provided, however, that the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some whole multiple thereof and that, in selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000. If less than all of the Bonds stated to mature on different dates shall be called for redemption, the particular Bonds or portions thereof to be redeemed shall be called in such maturities and amounts of those maturities as shall be determined by the Issuer.
    Not more than 60 days nor less than 30 days before the redemption date of any Bonds to be redeemed, whether such redemption be in whole or in part, the Issuer shall cause a notice of such redemption to be filed with the Bond Registrar and to be mailed, postage prepaid, to the registered owner of each Bond to be redeemed in whole or in part at the address of said owner appearing upon the registration books of the Issuer. Failure to mail such notice or any defect therein as to any Bond or portion thereof shall not affect the validity of the redemption as to any Bond or portion thereof for which such notice was given as required hereby. On the date fixed for redemption, notice having been given as aforesaid and not revoked as hereinafter provided, the Bonds or portions thereof so called for redemption shall be due and payable at the redemption price provided therefor, plus accrued interest to such date. If moneys for payment of such redemption price and the accrued interest are held by the Bond Registrar as provided in the Resolution, interest on the Bonds or the portions thereof called for redemption shall cease to accrue, such Bonds or portions thereof shall cease to be entitled to any benefits or security under the Resolution or to be deemed outstanding, and the registered owners of such Bonds or portions thereof shall have no rights in respect thereof except to receive payment of the redemption price thereof, plus accrued interest to the date of redemption. If a portion of this Bond shall be called for redemption, a new Bond or Bonds in principal amount equal to the unredeemed portion hereof will be issued to the registered owner hereof or the legal representative of said owner upon the surrender hereof.

    The Issuer shall have the right to revoke any call of Bonds for redemption if, on or prior to the third (3rd) business day preceding any date fixed for redemption of Bonds, the Issuer gives written notice to the Bond Registrar and the registered owner of each Bond theretofore called for redemption that the Issuer has elected to revoke its call of such Bonds for redemption.


    [The following four paragraphs are to be included in the form of Bond
    so long as the Bonds are being issued pursuant to a book-entry system.]

    The Bonds initially are being issued by means of a book-entry system with no physical distribution of Bond certificates to be made except as provided in the Resolution. Initially one fully registered Bond certificate for each stated maturity of the Bonds, in the aggregate principal amount of the Bonds of such stated maturity and registered in the name of the Securities Depository Nominee (as defined in the Resolution), a nominee of the Securities Depository (as defined in the Resolution), is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system of the Securities Depository will evidence positions held in the Bonds by the Securities Depository’s participants, with beneficial ownership of the Bonds in the principal amount of $5,000 or any whole multiple thereof being evidenced in the records of such participants. Transfers of beneficial ownership will be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants.
    The Issuer and the Bond Registrar will recognize the Securities Depository Nominee or the Securities Depository, as the case may be, while the registered owner of this Bond, as the owner of this Bond for all purposes, including payments of principal of, and redemption premium, if any, and interest on, this Bond, notices and voting. Transfer of principal and interest and any redemption premium payments to participants of the Securities Depository will be the responsibility of the Securities Depository, and transfer of principal and interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The Issuer and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing records maintained by the Securities Depository, its participants or persons acting through such participants.
    While the Securities Depository Nominee or the Securities Depository, as the case may be, is the owner of this Bond, notwithstanding the provisions hereinabove contained, payments of principal of, redemption premium, if any, and interest on this Bond shall be made to the Securities Depository Nominee or the Securities Depository, as the case may be, by wire transfer in immediately available funds to the account of said holder as may be specified in the bond registration books maintained by the Bond Registrar or by such other method of payment as the Issuer may determine to be necessary or advisable with the concurrence of the Securities Depository. Further, so long as a book-entry system is used for determining beneficial ownership of Bonds, redemption notices shall be given to the Securities Depository Nominee by certified or registered mail or by such other method as the Issuer may determine to be necessary or advisable with the concurrence of the Securities Depository. In addition, so long as a book-entry system is used for determining beneficial ownership of Bonds, if less than all of the Bonds of any one maturity shall be called for redemption, the Securities Depository shall determine by lot the amount of interest of each direct participant of the Securities Depository in the Bonds within such maturity to be redeemed.
    In certain events, the Issuer may replace the Securities Depository at the time with another qualified securities depository. In certain events, the Issuer may discontinue the book-entry system and deliver replacement Bonds in the form of fully registered certificates in the denomination of $5,000 or any multiple thereof in exchange for the outstanding Bonds as provided in the Resolution.
    At the office of the Bond Registrar, in the manner and subject to the conditions provided in the Resolution, Bonds may be exchanged for an equal aggregate principal amount of Bonds of the same maturity, of authorized denominations and bearing interest at the same rate.
    The Bond Registrar shall keep at its office the books of the Issuer for the registration of transfer of Bonds. The transfer of this Bond may be registered only upon such books and as otherwise provided in the Resolution upon the surrender hereof to the Bond Registrar 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 Bond Registrar. Upon any such registration of transfer, the Bond Registrar shall authenticate and deliver in exchange for this Bond a new Bond or Bonds, registered in the name of the transferee, of authorized denominations, in an aggregate principal amount equal to the unredeemed principal amount of this Bond, of the same maturity and bearing interest at the same rate.
    The Bond Registrar shall not be required to exchange or register the transfer of any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or of any Bond called for redemption in whole or in part pursuant to the Resolution.
    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 Bond have happened, exist and have been performed in regular and due form and time as so required; that provision has been made for the levy and collection of a direct annual tax upon all taxable property within the geographic boundaries of the Issuer sufficient to pay the principal of and the interest on this Bond as the same shall become due; and that the total indebtedness of the Issuer, including this Bond, does not exceed any constitutional or statutory limitation thereon.
    [The following paragraphs through the Certificate of Authentication
    are to appear on the front side of printed Bonds.]

    This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Resolution until this Bond shall have been authenticated by the execution by the Bond Registrar of the certificate of authentication endorsed hereon.
    IN WITNESS WHEREOF, said County of Wake, by resolution duly adopted by its Board, has caused this Bond to be executed with the manual or facsimile signatures of the [Chairman/Vice-Chairman] and the Clerk to the Board and its seal to be impressed or imprinted hereon, all as of the _____ day of March, 2007.

    COUNTY OF WAKE, NORTH CAROLINA


    [Manual or Facsimile Signature ]


    [SEAL] [Manual or Facsimile Signature ]

    CERTIFICATE OF LOCAL GOVERNMENT COMMISSION
    The issuance of the within Bond has been approved under the provisions of The Local Government Bond Act of North Carolina.

    [Manual or Facsimile Signature ]
    Secretary, Local Government Commission

    CERTIFICATE OF AUTHENTICATION
    This Bond is one of the Bonds of the series designated herein and issued under the provisions of the within-mentioned Resolution.

    COUNTY OF WAKE, NORTH CAROLINA
    as Bond Registrar

    By:_____________________________
    Finance Director

    Date of Authentication: March _, 2007


    ASSIGNMENT
    FOR VALUE RECEIVED the undersigned registered owner thereof hereby sells, assigns and transfers unto _______________________________________________________________________
    _____________________________________________________________________________________

    the within bond and all rights thereunder and hereby irrevocably constitutes and appoints
    ____________________________________________________________________________________________
    attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises.
    Dated: ________________ Signature Guaranteed:
    _______________________________
    NOTICE: The assignor’s signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever.

    [End of Bond Form]

    Certificated Bonds issuable hereunder shall be in substantially the form of the Bonds registered in the name of the Securities Depository Nominee with such changes as are necessary to reflect the provisions of this resolution that are applicable to Certificated Bonds.
    Section 7. The various maturities of the Bonds will be subject to redemption prior to their respective maturity as set forth herein or as otherwise designated by the County Manager or Finance Director at the time of sale of the Bonds. All or any of the maturities of the Bonds, as so designated by the County Manager or Finance Director, may be nonredeemable prior to their stated maturity. If any of the Bonds are to be redeemable before their stated maturity, the provisions set forth in the remainder of this Section 7 shall apply; but such provisions shall be inapplicable if none of the Bonds are subject to redemption prior to their stated maturity.
    The Bonds maturing prior to March 1, 201__ will not be subject to redemption prior to maturity. The Bonds maturing on March 1, 201__ and thereafter will be redeemable, at the option of the Issuer, from any moneys that may be made available for such purpose, either in whole or in part on any date not earlier than March 1, 201__, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, together with interest accrued thereon to the date fixed for redemption.
    If less than all of the Bonds of any one maturity shall be called for redemption then, subject to the immediately following sentence the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot in such manner as the Issuer in its discretion may determine; provided, however, that the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some whole multiple thereof and that, in selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000. So long as a book-entry system is used for determining beneficial ownership of the Bonds, if less than all of the Bonds of any one maturity shall be called for redemption, the Securities Depository shall determine by lot the amount of interest of each direct participant of the Securities Depository in the Bonds within such maturity to be redeemed. If less than all of the Bonds stated to mature on different dates shall be called for redemption, the particular Bonds or portions thereof to be redeemed shall be called in such maturities and amounts of those maturities as shall be determined by the Issuer.
    Not more than 60 days nor less than 30 days before the redemption date of any Bonds to be redeemed, whether such redemption be in whole or in part, the Issuer shall cause a notice of such redemption to be filed with the Bond Registrar and to be mailed, postage prepaid, to the registered owner of each Bond to be redeemed in whole or in part at the address of said owner appearing upon the registration books of the Issuer; provided, however, so long as a book-entry system is used for determining beneficial ownership of Bonds, such notice shall be given to the Securities Depository Nominee by certified or registered mail or by such other method as the Issuer may determine to be necessary or advisable with the concurrence of the Securities Depository. Failure to mail such notice or any defect therein as to any Bond or portion thereof shall not affect the validity of the redemption as to any Bond or portion thereof for which such notice was given as required hereby. Each such notice shall set forth the date designated for redemption, the redemption price to be paid and the maturities of the Bonds to be redeemed. In the event that Certificated Bonds are outstanding, each such notice to the registered owners thereof shall also set forth, if less than all of the Bonds of any maturity then outstanding shall be called for redemption, the distinctive numbers and letters, if any, of such Bonds to be redeemed and, in the case of any Bond to be redeemed in part only, the portion of the principal amount thereof to be redeemed. If any Bond is to be redeemed in part only, the notice of redemption shall state also that on or after the redemption date, upon surrender of such Bond, a new Bond or Bonds, in principal amount equal to the unredeemed portion of such Bond will be issued.
    The Issuer shall have the right to revoke any call of Bonds for redemption if, on or prior to the third (3rd) business day preceding any date fixed for redemption of Bonds, the Issuer gives written notice to the Bond Registrar and the registered owner of each Bond theretofore called for redemption that the Issuer has elected to revoke its call of such Bonds for redemption.
    If any Bonds, or portions thereof, are to be redeemed, the Bond Registrar shall open a separate account for the sole benefit of the bondholders whose Bonds are being redeemed, which account may be maintained by the Bond Registrar or by an agent. On or before the date fixed for redemption, moneys shall be deposited with the Bond Registrar in its capacity as such for deposit in such account to pay the principal of and the redemption premium, if any, on the Bonds or portions thereof called for redemption, as well as the interest accruing thereon to the redemption date thereof.
    On the date fixed for redemption, notice having been given in the manner and under the conditions hereinabove provided and not revoked as hereinabove provided, the Bonds or portions thereof so called for redemption shall be due and payable from the moneys required to be deposited in such account at the redemption price provided therefor, plus accrued interest to such date. If moneys sufficient to pay the redemption price of the Bonds or portions thereof to be redeemed, plus accrued interest thereon to the date fixed for redemption, are held by the Bond Registrar in such account in trust for the registered owners of the Bonds or portions thereof to be redeemed, interest on the Bonds or portions thereof called for redemption shall cease to accrue, such Bonds or portions thereof shall cease to be entitled to any benefits or security under this resolution or to be deemed outstanding, and the registered owners of such Bonds or portions thereof shall have no rights in respect thereof except to receive payment of the redemption price thereof, plus accrued interest to the date of redemption.
    If a portion of a Bond shall be selected for redemption, the registered owner thereof or his attorney or legal representative shall present and surrender such Bond to the Bond Registrar for payment of the principal amount thereof called for redemption and the redemption premium, if any, on such principal amount, and the Bond Registrar shall authenticate and deliver to or upon the order of such registered owner or his legal representative, without charge therefor, for the unredeemed portion of the principal amount of the Bond so surrendered, a Bond or Bonds of the same maturity, of any denomination or denominations authorized by this resolution and bearing interest at the same rate.
    Section 8. The provisions of this Section 8 relating to the exchange and transfer of Bonds are subject to the provisions for operation of the book-entry system provided in Section 4 of this resolution, including the immobilization of Bond certificates with a Securities Depository during the continuation of the book-entry system. Bonds, upon surrender thereof at the office of the Bond 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 Bond Registrar, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Bonds of the same maturity, of any denomination or denominations authorized by this resolution and bearing interest at the same rate.
    The transfer of any Bond may be registered only upon the registration books of the Issuer upon the surrender thereof to the Bond 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 Bond Registrar. Upon any such registration of transfer, the Bond Registrar shall authenticate and deliver in exchange for such Bond a new Bond or Bonds, 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 Bond so surrendered, of the same maturity and bearing interest at the same rate.
    In all cases in which Bonds shall be exchanged or the transfer of Bonds shall be registered hereunder, the Bond Registrar shall authenticate and deliver at the earliest practicable time Bonds in accordance with the provisions of this resolution. All Bonds surrendered in any such exchange or registration of transfer shall forthwith be cancelled by the Bond Registrar. The Issuer or the Bond Registrar may make a charge for every such exchange or registration of transfer of Bonds sufficient to reimburse it for shipping charges, out-of-pocket costs and any tax, fee 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 Issuer or the Bond Registrar for exchanging or registering the transfer of Bonds under this resolution. The Bond Registrar shall not be required to exchange or register the transfer of any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or of any Bond called for redemption in whole or in part pursuant to Section 7 of this resolution.
    As to any Bond, 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 or redemption price of any such Bond and the interest on any such Bond 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 Bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid.
    The Issuer shall appoint such registrars, transfer agents, depositaries or other agents as may be necessary for the registration, registration of transfer and exchange of Bonds within a reasonable time according to then current commercial standards and for the timely payment of principal, interest and any redemption premium with respect to the Bonds. The Issuer is to act as the initial registrar, transfer agent and paying agent for the Bonds (collectively the “Bond Registrar”), subject to the right of the governing body of the Issuer to appoint another Bond Registrar. The Finance Director (or such other officer who shall from time to time perform the duties of finance officer within the meaning of North Carolina General Statutes, Section. 159-24, as it may be amended from time to time, or any successor statute) is hereby designated to act on behalf of the Issuer in carrying out its responsibilities as Bond Registrar, subject to the right of the governing body of the Issuer to designate another officer to act on its behalf, and as such shall keep at the office of the Finance Director, currently at Wake County Office Building, 336 Fayetteville Street Mall, 9th Floor, Raleigh, North Carolina 27602, the books of the Issuer for the registration, registration of transfer, exchange and payment of the Bonds.
    Section 9. The actions of the County Manager and the Finance Director of the Issuer in applying to the Local Government Commission of North Carolina to advertise and sell the Bonds are hereby approved, ratified and confirmed. The Local Government Commission of North Carolina is hereby requested to ask for sealed bids for the Bonds, by publishing notices and printing and distributing a Preliminary Official Statement and an Official Statement, including any supplement thereto, relating to the sale of the Bonds. The Preliminary Official Statement, proposed to be dated on or about February 9, 2007, substantially in the form presented at this meeting, and an Official Statement, proposed to be dated on or about February 20, 2007, in substantially the form of the Preliminary Official Statement presented at this meeting, with such changes as are necessary to reflect the maturities, redemption provisions, interest rates and other pricing data of the Bonds, is hereby approved and the Chairman or Vice-Chairman of the Board, the County Manager and the Finance Director, respectively, of the Issuer are each hereby authorized to approve changes in such Preliminary Official Statement or Official Statement, to approve any supplement to such Preliminary Official Statement or Official Statement and to execute such Official Statement and any supplement to such Official Statement for and on behalf of the Issuer.
    Section 10. There may be printed on the reverse of each of any printed Bond the legal opinion of Helms Mulliss & Wicker, PLLC, bond counsel to the Issuer, with respect to the validity of the Bonds and there may be printed immediately following such legal opinion a certificate bearing the manual or facsimile signature of the Chairman or Vice-Chairman of the Board of the Issuer, said certificate to be in substantially the following form:
    “I HEREBY CERTIFY that the foregoing is a true and correct copy of the legal opinion on the bonds therein described which was manually signed by Helms Mulliss & Wicker, PLLC, Raleigh, North Carolina, and was dated as of the date of delivery of and payment for said bonds. Section 11. The Issuer covenants that, to the extent permitted by the Constitution and laws of the State of North Carolina, it will do and perform all acts and things to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), and any related regulations and procedures in order to assure that interest paid on the Bonds will not be includable in the gross income of the owners thereof for purposes of federal income taxation, except to the extent that the Issuer obtains an opinion of bond counsel to the effect that noncompliance would not result in interest on the Bonds being includable in the gross income of the owners of the Bonds for purposes of federal income taxation.
    As necessary or appropriate in connection with the issuance of the Bonds all officers, employees and agents of the Issuer are authorized and directed to provide certifications of material facts and estimates as to the reasonable expectations of the Issuer as of the date(s) the Bonds are delivered and on behalf of the Issuer to sign agreements or acknowledge instructions regarding compliance with the requirements of the Code and any related regulations and procedures relating to the Bonds.
    Section 12. There are hereby created, as may be needed, appropriate funds and accounts of the Issuer for the receipt and expenditure of the proceeds of the Bonds and appropriate debt service funds and accounts of the Issuer for the receipt and disbursement of debt service payments on the Bonds.
    Section 13. The Issuer hereby undertakes, for the benefit of the beneficial owners of the Bonds, to provide:
    (a) by not later than seven months from the end of each fiscal year of the Issuer, commencing with the fiscal year ending June 30, 2007, to each nationally recognized municipal securities information repository (“NRMSIR”) and to the state information depository for the State of North Carolina (“SID”), if any, audited financial statements of the Issuer for such fiscal year, if available, prepared in accordance with Section 159-34 of the General Statutes of North Carolina, as it may be amended from time to time, or any successor statute, or, if such audited financial statements of the Issuer are not available by seven months from the end of such fiscal year, unaudited financial statements of the Issuer for such fiscal year to be replaced subsequently by audited financial statements of the Issuer to be delivered within 15 days after such audited financial statements become available for distribution;
    (b) by not later than seven months from the end of each fiscal year of the Issuer, commencing with the fiscal year ending June 30, 2007, to each NRMSIR, and to the SID, if any, (i) the financial and statistical data as of a date not earlier than the end of the preceding fiscal year for the type of information included under the heading “The County - Debt Information and - Tax Information” in the Official Statement relating to the Bonds (excluding any information on overlapping or underlying units) and (ii) the combined budget of the Issuer for the current fiscal year, to the extent such items are not included in the financial statements referred to in (a) above;
    (c) in a timely manner, to each NRMSIR or to the Municipal Securities Rulemaking Board (“MSRB”), and to the SID, if any, notice of any of the following events with respect to the Bonds, if material:
    (1) principal and interest payment delinquencies;
    (2) non-payment related defaults;
    (3) unscheduled draws on 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 Bonds;
    (7) modification to the rights of the beneficial owners of the Bonds;
    (8) call of any of the Bonds for redemption;
    (9) defeasance of any of the Bonds;
    (10) release, substitution or sale of any property securing repayment of the Bonds; 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 Issuer to provide required annual financial information described in (a) or (b) above on or before the date specified.
    If the Issuer fails to comply with the undertaking described above, any beneficial owner of the Bonds may take action to protect and enforce the rights of all beneficial owners with respect to such undertaking, including an action for specific performance; provided, however, that failure to comply with such undertaking shall not be an event of default and shall not result in any acceleration of payment of the 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 Bonds.
    The Issuer 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 Issuer, 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, nature, or status of the Issuer;
    (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 relating to the Bonds, 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, as determined either by parties unaffiliated with the Issuer (such as bond counsel), or by the approving vote of the registered owners of a majority in principal amount of the Bonds pursuant to the terms of this bond resolution, as it may be amended from time to time, at the time of the amendment.
    Any annual financial information containing modified operating data or financial information shall explain, in narrative form, the reasons for the modification and the impact of the change in the type of operating data or financial information being provided.
    To the extent permitted by the U.S. Securities and Exchange Commission, the Issuer may discharge its undertaking described above by transmitting those documents or notices electronically to www.disclosureusa.org.
    The provisions of this Section shall terminate upon payment, or provision 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 Bonds.
    Section 14. The Chairman or Vice-Chairman of the Board, the County Manager and the Finance Director, respectively, of the Issuer are each hereby authorized, in the event they determine, in their discretion, such action to be appropriate and in the best interests of the Issuer in connection with the application of a portion of the proceeds of the Bonds to retire outstanding commercial paper bond anticipation notes, to engage a qualified bank or trust company to serve as escrow agent in connection with the retirement of such commercial paper bond anticipation notes, and to negotiate, execute and deliver, on behalf of the Issuer, with the advice of bond counsel to the Issuer, an Escrow Deposit Agreement relating to the retirement of such commercial paper bond anticipation notes and to perform the obligations of the Issuer under said Escrow Deposit Agreement.
    Section 15. The Chairman or Vice-Chairman of the Board, the Clerk to the Board, the County Manager, the Finance Director and the other officers of the Issuer are each hereby authorized and directed to execute and deliver for and on behalf of the Issuer any and all financing statements, certificates, documents or other papers, including, without limitation, Letter(s) of Representations to Securities Depositories and agreements relating to investment of proceeds of the Bonds (including repurchase agreements), and to perform any and all acts they

    may deem necessary or appropriate in order to carry out the intent of this resolution and the matters herein authorized.
    Section 16. This resolution shall take effect upon its passage.
    Upon motion of Commissioner Bryan, seconded by Commissioner Ward, the foregoing resolution entitled: “RESOLUTION PROVIDING FOR THE ISSUANCE OF UP TO $455,000,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2007” was passed by the following vote:

    Ayes: Commissioners Lindy Brown, Joe Bryan, Paul Coble, Kenn Gardner, Tony Gurley, Betty Lou Ward, and Harold Webb.

    Noes: __________________________________________________________________.


    * * * * *
    I, Susan Banks, Clerk to the Board of Commissioners for the County of Wake, North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board of Commissioners at a regular meeting held on February 5, 2007, as relates in any way to the passage of a resolution providing for the issuance of up to $455,000,000 General Obligation Public Improvement Bonds, Series 2007 of said County, and that said proceedings are recorded in Minute Book No. ___ of the minutes of said Board of Commissioners, beginning at page ____ and ending at page ____.

    I DO HEREBY FURTHER CERTIFY that the schedule of regular meetings of said Board of Commissioners has been on file in my office pursuant to North Carolina General Statutes 143-318.12 as of a date not less than seven (7) days before said meeting.

    WITNESS my hand and the corporate seal of said County, this 5th day of February, 2007.
    Clerk to the Board of Commissioners
    for the County of Wake, North Carolina

    (SEAL)

    EXTRACT FROM MINUTES OF MEETING
    BOARD OF COMMISSIONERS OF
    THE COUNTY OF WAKE, NORTH CAROLINA

    The Board of Commissioners for the County of Wake, North Carolina, met in regular session in the Commissioners’ Meeting Room in the Wake County Courthouse in Raleigh, North Carolina, the regular place of meeting, at 2:00 p.m., on February 5, 2007, with Tony Gurley, Chairman, presiding. The following Commissioners were:

    PRESENT: Lindy Brown, Joe Bryan, Paul, Coble, Kenn Gardner, Betty Lou Ward, and Harold Webb.
    ABSENT: None.
    ALSO PRESENT David Cooke, County Manager; Michael Ferrell, County Attorney; and Susan J. Banks, Clerk.

    * * * * *

    The Chairman introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title:


    RESOLUTION PROVIDING FOR THE ISSUANCE OF UP TO
    $100,000,000 GENERAL OBLIGATION BONDS, CONSISTING OF $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007A AND $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007B

    BE IT RESOLVED by the Board of Commissioners (the “Board”) of the County of Wake, North Carolina (the “County”):

    Section 1. The Board has determined and does hereby find, declare and represent:
    (a)(1) That an order authorizing not exceeding $970,000,000 School Bonds (the “School Bond Order”) was adopted by the Board for the County on August 21, 2006, which order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on November 7, 2006.
    (a)(2) That $175,000,000 of said School Bonds have heretofore been authorized to be issued under the designation “Public Improvement Bonds, Series 2007,” that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said School Bonds, and that it is necessary to issue at this time an additional $100,000,000 of said School Bonds in accordance with the provisions of this resolution.
    (a)(3) That the maximum period of usefulness of the facilities to be financed with the proceeds of said School Bonds to be issued is estimated as a period of 40 years from March 8, 2007 the date of said School Bonds, as hereinafter provided, and that such period expires on March 8, 2047.
    (a)(4) That pursuant to Article 4 of Chapter 159 of the North Carolina General Statutes, as amended, which constitutes The Local Government Bond Act (the “Act”), and Article 7 of such Chapter 159, the County is authorized to issue the School Bonds either (A) as fixed rate bonds sold at public sale, (B) as bonds bearing interest at rates which vary from time to time and are payable on demand or tender under certain conditions, or (C) as a combination of fixed rate bonds and variable rate bonds.
    (a)(5) That based on staff recommendations and the advice of its financial advisor, the Board desires that the County have a portion of its outstanding long-term indebtedness bear interest at variable rates.
    Section 2. Pursuant to the School Bond Order, there shall be issued variable rate general obligation bonds of the County in an aggregate principal amount not to exceed $100,000,000, consisting of (A) “Variable Rate School Bonds, Series 2007A,” in an aggregate principal amount not to exceed $50,000,000 and (B) “Variable Rate School Bonds, Series 2007B,” in an aggregate principal amount not to exceed $50,000,000. The County confirms (a) it has considered and evaluated both fixed and variable rate debt alternatives; (b) it has considered and recognizes that the current interest rates on fixed rate debt instruments are low and has determined that the estimated interest rate at which fixed rate bonds could be issued is below 4.50%; and (c) it has considered and recognizes that variable interest rate debt instruments subject the County to the risk of higher interest rates in the future, that the rates may be higher than the fixed rates that are currently available to the County, and that in addition to the variable interest rate cost, the County must pay fees to a liquidity provider and a remarketing agent, which fees will increase the cost of variable rate debt. The County desires to issue the School Bonds as variable rate debt financing because (1) the initial interest rate is substantially below the fixed rate at which it is anticipated the School Bonds could be sold if the School Bonds were sold as fixed rate debt; (2) a variable interest rate provides the possibility of substantial cost savings over the life of the School Bonds; (3) the interest rate on the School Bonds can be fixed at any time and (4) variable rate debt is a key component of the County’s management of its liabilities in concert with its short-term liquid assets. The Local Government Commission of North Carolina (the “LGC”) is hereby requested to sell the School Bonds as variable rate bonds by private sale on March 7, 2007, pursuant to an Official Statement for the School Bonds, in substantially the form of the Preliminary Official Statement presented at this meeting, and the 2007 Variable Rate Documents, as hereinafter defined.
    Section 3. Substantially final forms of the following documents have been presented to the staff of the County in connection with the proposed issuance of the School Bonds:
    (a) Indenture of Trust dated as of March 1, 2007 (the “Indenture”), between the County and Regions Bank, as Fiscal Agent, set forth as Exhibit A hereto and incorporated herein by reference;
    (b) 2007A Bond Purchase Agreement, proposed to be dated on or about March 7, 2007, between the LGC and Banc of America Securities LLC and to be approved by the County;
    (c) 2007A Bond Remarketing Agreement, proposed to be dated on or about March 1, 2007, between the County and Banc of America Securities LLC;
    (d) 2007B Bond Purchase Agreement, proposed to be dated on or about March 7, 2007, between the LGC and A.G. Edwards & Sons, Inc. and to be approved by the County;
    (e) 2007B Bond Remarketing Agreement, proposed to be dated on or March 1, 2007, between the County and A.G. Edwards & Sons, Inc.;
    (f) 2007A Bond Standby Purchase Agreement, proposed to be dated on or about March 1, 2007, between the County and Bank of America, N.A.; and
    (g) 2007B Bond Standby Purchase Agreement, proposed to be dated on or about March 1, 2007, between the County and Bank of America, N.A.
    All such documents are hereinafter referred to as the “2007 Variable Rate Documents.”
    The forms and details of the School Bonds, including the interest rate determination provisions therefore, shall be as set forth in the Indenture. The 2007 Variable Rate Documents are hereby approved and the Chair or Vice Chair of this Board and other officers and staff of the County are authorized and directed to execute and deliver the 2007 Variable Rate Documents and all related certificates and agreements on behalf of the County. The foregoing approval is subject to the following limitations:
    (1) Changes and modifications to the 2007 Variable Rate Documents, including the completion of any blanks therein, prior to issuance of the School Bonds, may be made as approved by the Chair or Vice Chair, their execution thereof evidencing such approval; and
    (2) The 2007 Variable Rate Documents may be amended after issuance of the School Bonds in accordance with Article IX of the Indenture; provided, no such change or modification shall (a) change the amount, maturity or redemption provisions of any School Bond or (b) change the remarketing agent for any School Bond or its fee, without, in either case, the approval of this Board.
    Section 4. The actions of the County Manager and the Finance Director of the County in applying to the LGC to sell the School Bonds are hereby approved, ratified and confirmed. The Chair or Vice Chair, the County Manager or the Finance Director of the County, respectively, are each hereby authorized to approve changes in such Preliminary Official Statement or Official Statement, to approve any supplement to such Preliminary Official Statement or Official Statement and to execute such Official Statement and any supplement to such Official Statement for and on behalf of the County.
    Section 5. The County covenants that, to the extent permitted by the Constitution and laws of the State of North Carolina, it will do and perform all acts and things to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), and any related regulations and procedures in order to assure that interest paid on the School Bonds will not be includable in the gross income of the owners thereof for purposes of federal income taxation, except to the extent that the County obtains an opinion of bond counsel to the effect that noncompliance would not result in interest on the School Bonds being includable in the gross income of the owners of the School Bonds for purposes of federal income taxation.
    As necessary or appropriate in connection with the issuance of the School Bonds, all officers, employees and agents of the County are authorized and directed to provide certifications of material facts and estimates as to the reasonable expectations of the County as of the date(s) the School Bonds are delivered and on behalf of the County to sign agreements or acknowledge instructions regarding compliance with the requirements of the Code and any related regulations and procedures relating to the School Bonds.
    Section 6. The County hereby undertakes, for the benefit of the beneficial owners of the School Bonds, to provide:
    (a) by not later than seven months from the end of each fiscal year of the County, commencing with the fiscal year ending June 30, 2007, to each nationally recognized municipal securities information repository (“NRMSIR”) and to the state information depository for the State of North Carolina (“SID”), if any, audited financial statements of the County for such fiscal year, if available, prepared in accordance with Section 159-34 of the General Statutes of North Carolina, as it may be amended from time to time, or any successor statute, or, if such audited financial statements of the County are not available by seven months from the end of such fiscal year, unaudited financial statements of the County for such fiscal year to be replaced subsequently by audited financial statements of the County to be delivered within 15 days after such audited financial statements become available for distribution;
    (b) by not later than seven months from the end of each fiscal year of the County, commencing with the fiscal year ending June 30, 2007, to each NRMSIR, and to the SID, if any, (i) the financial and statistical data as of a date not earlier than the end of the preceding fiscal year for the type of information included under heading “The County - Debt Information and - Tax Information” in the Official Statement relating to the School Bonds and (ii) the combined budget of the County for the current fiscal year, to the extent such items are not included in the financial statements referred to in (a) above;
    (c) in a timely manner, to each NRMSIR or to the Municipal Securities Rulemaking Board (“MSRB”), and to the SID, if any, notice of any of the following events with respect to the School Bonds, if material:
    (1) principal and interest payment delinquencies;
    (2) non-payment related defaults;

    (5 ) substitution of any credit or liquidity providers, or their failure to perform; (9) defeasance of any of the School Bonds; (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 County to provide required annual financial information described in (a) or (b) above on or before the date specified.
    If the County fails to comply with the undertaking described above, any beneficial owner of the School Bonds may take action to protect and enforce the rights of all beneficial owners with respect to such undertaking, including an action for specific performance; provided, however, that failure to comply with such undertaking shall not be an event of default and shall not result in any acceleration of payment of the School 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 School Bonds.
    The County 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 County, 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, nature, or status of the County;
    (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 relating to the School Bonds, 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, as determined either by parties unaffiliated with the County (such as bond counsel), or by the approving vote of the registered owners of a majority in principal amount of the School Bonds, pursuant to the terms of this bond resolution, as it may be amended from time to time, at the time of the amendment.
    Any annual financial information containing modified operating data or financial information shall explain, in narrative form, the reasons for the modification and the impact of the change in the type of operating data or financial information being provided.
    To the extent permitted by the U.S. Securities and Exchange Commission, the Issuer may discharge its undertaking described above by transmitting those documents or notices electronically to www.disclosureusa.org.
    The provisions of this Section shall terminate upon payment, or provision 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 School Bonds.
    Section 7. The Chair or Vice Chair, the Clerk to the Board, the County Manager, the Finance Director and the other officers of the County are each hereby authorized and directed to execute and deliver for and on behalf of the County any and all financing statements, certificates, documents or other papers, including, without limitation, Letter(s) of Representations to Securities Depositories, and to perform any and all acts they may deem necessary or appropriate in order to carry out the intent of this resolution and the matters herein authorized.
    Section 8. This resolution shall take effect immediately upon its passage.
    Upon motion of Commissioner _Bryan____________, seconded by Commissioner __Ward__________, the foregoing resolution entitled: “RESOLUTION PROVIDING FOR THE ISSUANCE OF UP TO $100,000,000 GENERAL OBLIGATION BONDS, CONSISTING OF $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007A AND $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007B” was passed by the following vote:
    Ayes: Commissioners Brown Bryan, Coble, Gardner, Ward, and Webb. _________________________________________________.
    Noes: _None.___________________________________________________________.

    RESOLUTION DESIGNATING FINANCING TEAM
    FOR $100,000,000 GENERAL OBLIGATION BONDS, CONSISTING OF
    $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007A
    AND $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007B

    WHEREAS, the Board of Commissioners (the “Board”) of the County of Wake (the “County”) has decided to issue variable rate general obligation bonds of the County in an aggregate principal amount not to exceed $100,000,000, consisting of Variable Rate School Bonds, Series 2007A in an aggregate principal amount not to exceed $50,000,000 and Variable Rate School Bonds, Series 2007B in an aggregate principal amount not to exceed $50,000,000 (collectively, the “School Bonds”);
    WHEREAS, the issuance of the School Bonds will require the County to utilize the services of professionals in connection therewith;
    NOW, THEREFORE, BE IT RESOLVED by the Board:
    Section 1. The following financing team is approved for the School Bonds:
    Bond Counsel Helms Mulliss & Wicker, PLLC
    Financial Advisor Waters and Company, LLC
    Underwriter/Remarketing Agent -
    Series 2007A Bonds Banc of America Securities LLC, Inc.
    Underwriter/Remarketing Agent –
    Series 2007B Bonds A.G. Edwards & Sons, Inc.
    Underwriters’ Counsel Womble Carlyle Sandridge & Rice, PLLC
    Trustee and Paying Agent Regions Bank
    Liquidity Provider Bank of America, N.A.
    Liquidity Provider’s Counsel Womble Carlyle Sandridge & Rice, PLLC

    Section 2. This resolution shall take effect immediately upon its passage.

    Upon motion of Commissioner _Bryan________________, seconded by Commissioner _____Ward_______________, the foregoing resolution entitled: “RESOLUTION DESIGNATING FINANCING TEAM FOR $100,000,000 GENERAL OBLIGATION BONDS, CONSISTING OF $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007A AND $50,000,000 VARIABLE RATE SCHOOL BONDS, SERIES 2007B” was passed by the following vote:
    Ayes: Commissioners Brown Bryan, Coble, Gardner, Ward, and Webb__________.
    Noes: ___None.______________________________________________________.


    * * * * *
    I, Susan Banks, Clerk to the Board of Commissioners for the County of Wake, North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board of Commissioners at a regular meeting held on February 5, 2007, as relates in any way to the passage of (i) a resolution providing for the issuance of up to $100,000,000 General Obligation Bonds of said County, consisting of $50,000,000 Variable Rate School Bonds, Series 2007A and $50,000,000 Variable Rate School Bonds, Series 2007B of said County, and that said proceedings are recorded in Minute Book No. ___ of the minutes of said Board of Commissioners, beginning at page ____ and ending at page ____, and (ii) a resolution designating the financing team for such bonds, and that said proceedings are recorded in Minute Book No. ___ of the minutes of said Board of Commissioners, beginning at page ____ and ending at page ____.

    I DO HEREBY FURTHER CERTIFY that the schedule of regular meetings of said Board of Commissioners has been on file in my office pursuant to North Carolina General Statutes 143-318.12 as of a date not less than seven (7) days before said meeting.

    WITNESS my hand and the corporate seal of said County, this 5th day of February, 2007.
    Clerk to the Board of Commissioners
    for the County of Wake, North Carolina

    (SEAL)

    ******************

    CONSIDERATION OF REQUEST FROM THE TOWN OF HOLLY SPRINGS TO RECEIVE
    HOST FEES FROM THE SOUTH WAKE LANDFILL

    Mr. David Cooke stated that Commissioner Brown had requested this item be on the agenda. He explained that this request was sent to the county from Mayor Sears of Holly Springs. It was suggested that the Mayor wanted to get support from the County. Commissioner Brown stated she had spoken with Mayor Sears. She asked to withdraw this item at this time.

    Commissioner Brown motioned to withdraw this item because there was no support or representation from Holly Springs at this meeting. Commissioner Gardner seconded the motion. Chairman Gurley said he wanted to address this item since this was the second request made by Holly Springs. The motion to withdraw the item failed with a five to two vote. Commissioners in favor of the motion were: Bryan, Coble, Gurley, Ward and Webb. Commissioners Brown and Gardner opposed the motion.

    Commissioner Bryan motioned, seconded by Commissioner Webb, to deny the request from Holly Springs Town Council for host fees for the South Wake Landfill. The motion passed with a six to one vote. Commissioners in favor of the motion were: Brown, Bryan, Coble, Gurley, Ward and Webb. Commissioner Gardner opposed the motion.
    ******************

    APPOINTMENTS


    a.Aircraft Noise Abatement Committee
    Nomination was made by Commissioner Ward to reappoint Tim McBrayer and Gregory Denning.
    b.Fuquay-Varina Board of Adjustment
    Nominations were made by Commissioner Webb to reappoint David Proctor (alternate member) and James Ransdell, Jr. (regular member).
    c.Fuquay-Varina Planning and Zoning Board
    Nomination was made by Commissioner Brown to reappointment Bill Tomlinson and appoint Carl D. Phelan.
    d.Greater Raleigh Convention and Visitors Bureau
    Commissioner Coble nominated David Behnke, Betsy Bennett, Barry F. Mitsch, and Bob Schofield. Commissioner Brown nominated Russ Smith and Dale Whitworth.
    e.Juvenile Crime Prevention Council
    Commissioner Brown nominated James “Ronnie” Ansley.
    f.Wake County Board of Adjustment
    Commissioner Ward nominated Timothy Sack (alternate member).
    g.Wake County Historic Preservation Commission
    Commissioner Gardner nominated Stephanie Ashworth, Christine Forte, Charles E. Morris, Janice Rollins, Daniel L. Turner and Charles M. Zidar.
    h.Wake County Housing Authority
    Commissioner Coble nominated Reverend Alfonza Fullwood, Keith Shackleford, John Austin and Kerry Davis.
    i.Wake County Planning Board
    Commissioner Bryan nominated Dale Bouldin, John Miller, Jr., and Loftee Glenn Smith. Commissioner Webb nominated Dr. Eleanor F. Nunn.
    j.Yates Mill County Park Advisory Board
    Commissioner Ward nominated Alton Howard and Doug Wellman.
    Upon motion by Commissioner Gardner, seconded by Commissioner Ward, the Board voted unanimously to accept all nominations by
    acclamation.
    ******************

    OTHER BUSINESS

    Commissioner Gardner reported on progress with Interact. They asked him to do a walkthrough of their new facility. They are also pursuing partners for upfitting the building.
    The original deal with the County was for a $750,000 maximum threshold for their property but it sold $21,000 short on the cap. He asked if the Board would consider making up the difference. Chairman Gurley said the property appraised at $750,000 and they made the decision to make the deal below the appraised value.

    Commissioner Ward motioned to allocate the $21,000 to Interact, seconded by Commissioner Gardner, and the Board approved the motion. The County Attorney stated that the board may need to suspend their rules if adding and taking action on this item. Commissioner Ward withdrew the motion.
    COMMITTEE REPORTS

    Commissioner Brown reported that the Manager had been working diligently with the Human Services Board on hiring a new Human Services Director. She also reported that the Greater Raleigh Chamber is working on a new State Visitors Center.

    Commissioner Webb reported that the General Assembly was beginning their consideration of legislative goals.

    Mr. David Cooke reported that his recommendation for hiring the new Human Services Director was confirmed by the Human Services Board. Dr. Ramon Rojano from Hartford, Connecticut was offered the position and has accepted. There was an interview panel which included Department Heads, Reverend Forbes, and Chairman Dave Filipowski. Dr. Rojano’s hiring was confirmed Saturday. He has extensive experience in a broad number of areas. Mr. Cooke said he would arrange some visits during his transition so he can meet with the Board. He starts work on April 9th.
    ******************

    CLOSED SESSION

    County Attorney Michael Ferrell informed the Board that they needed to go into closed session to instruct staff on negotiating real property, consideration of a potential claim and a personnel item. These items are authorized by G.S. 143-318.11(a). The property to be discussed was located on 424 South McDowell Street and owned by Raleigh Properties.

    Chairman Gurley announced the Board was going into closed session to discuss the items noted by the County Attorney.

    Chairman Gurley reconvened the open session meeting and recognized Commissioner Webb.
    OPEN SESSION

    Commissioner Webb motioned, seconded by Commissioner Coble, and the Board voted unanimously to authorize the County Manager to execute a contract with Raleigh Properties and Realty, Inc. for the purchase of a construction easement over the lot located at 424 South McDowell Street with the consideration being the County’s cost of demolishing and removing the building currently located on said lot.

    Commissioner Ward motioned, seconded by Commissioner Webb, and the Board voted unanimously to authorize the County Manager to sign a settlement agreement with BlueCross BlueShield of North Carolina for $425,000 for emergency medical services rendered to BlueCross BlueShield policyholders from April 1, 2005 to October 1, 2006, subject to review and approval by the County Attorney.

    Commissioner Coble motioned, seconded by Commissioner Webb, and the Board voted unanimously to adjourn the meeting at 7:34pm
    Respectfully submitted


    Susan J. Banks, CMC
    Clerk to the Board