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WAKE COUNTY BOARD OF COMMISSIONERS

Regular Meeting

December 3, 2012

2:00 P.M. Room 700, Wake County Courthouse

Meeting Called to Order: Susan Banks, Clerk to the Board (The Clerk to the Board presides at the first meeting in December until the Board of

Commissioners elects a Chair for the ensuing year.) Members present were: Joe Bryan, Paul Coble, Phil Matthews, Tony Gurley,

Betty Lou Ward, James West and Commissioner-elect Caroline Sullivan Others attending were: David C. Cooke, County Manager; Susan J. Banks,

Clerk to the Board; Scott Warren, County Attorney; Denise Hogan, Deputy Clerk; and Deputy Managers Joe Durham and Johnna Rogers Pledge of Allegiance - Presentation of Colors by Wake County Sheriff's Office Color Guard

National Anthem - Provided by Robert Davis, Wake County Sheriff's Office Invocation: Commissioner Paul Coble Items of Business Oath of Office for Wake County Commissioners Administered by the Honorable Sid Eagles, Chief Judge of the NC Court of Appeals

Caroline Sullivan Betty Lou Ward

James West Oath of Office for Register of Deeds - Administered by Representative Paul Stam, Majority Leader, North

Carolina House of Representatives for Laura Marino Riddick Oath of Office for Soil and Water District Supervisors Administered by The

Honorable Sid Eagles, Chief Judge of the NC Court of Appeals William Cole

Thomas Dean Patrick Johnson Election of Chair of the Board for a Term of One Year - Susan Banks, Clerk to the Board, calls for nominations for Chair. The

new Chair is elected and then presides over the meeting.

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Ms. Banks called for nominations for board chairman.

Commissioner Coble nominated Commissioner Bryan. Commissioner West

nominated Betty Lou Ward.

Votes were as follows: Commissioner Ward - Commissioners Sullivan, Ward and West

Commissioner Bryan – Commissioners Matthews, Coble, Gurley and Bryan

Commissioner Bryan won the election of Chairman of the Board effective December 3, 2012 thru December 2, 2013.

Commissioner Bryan said that he looks forward to the opportunity to serve as chairman of this board and to work to strengthen this team. There will be a

goal setting work session in February. The biggest challenge is to restore the partnership with the Wake County Board of Education and to bring about a

successful bond issue this coming year.

Election of Vice Chair for One Year Term - Chair Presides Over Election

Chairman Bryan called for nominations for the Vice-Chair and nominated

Commissioner Matthews. Commissioner Sullivan nominated James West. Votes were as follows:

Commissioner Matthews – Commissioners Coble, Gurley, Bryan and Matthews Commissioner West – Commissioners West, Ward and Sullivan

Commissioner Matthews won the election of Vice-Chair effective December 3,

2012 thru December 2, 2013.

Approval of Agenda Mr. Cooke asked that item #26 be discussed in closed session.

Paul Coble motioned, seconded by Tony Gurley, to approve the agenda as amended. The motion passed unanimously.

Recognition of Outgoing Chairman Paul Y. Coble Chairman Bryan presented Commissioner Coble with a plaque for his service

as Chairman for the past two years. Chairman Bryan complimented Commissioner Coble for his leadership. He said that public policy balance has

been created by his leadership and spoke of his commitment to public service. He shared that Commissioner Coble has served in many capacities along with

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balancing time with his family. Commissioner Coble complimented the county staff for their work.

Approval of the Minutes of the Board of Commissioners' Regular Meeting of November 19, 2012

Phil Matthews motioned, seconded by Tony Gurley, to approve the Minutes of the Board of Commissioners' Regular Meeting of November 19, 2012. The

motion passed unanimously.

Presentation of Comprehensive Annual Report for the Fiscal Year Ended

June 30, 2012 Ms. Susan McCullen, Financial Services Director, Wake County and Ms.

Michelle Thompson, Cherry Bekaert & Holland presented the annual report for Fiscal Year Ending June 30, 2012. Ms. McCullen said that the county is required to have an audit each year.

Ms. Thompson said the purpose of the audit was to give an opinion and Wake

County received an unqualified opinion. No material weaknesses were found. Ms. Thompson thanked the staff for their work. Ms. McCullen said that Wake

County was pleased with the work of Cherry Bekaert & Holland. Ms. McCullen shared the highlights of the audit.

Reports issued by CBH: - Unqualified Opinion on Financial Statements

- Compliance Reports related to Internal Controls and Federal and State Grant Awards.

Administered $153.7 million dollars of Federal, State and Local grants No material weaknesses in the current year or in the prior year.

General Fund – 2012

Summary Operating Results

General Fund Revenues

Original Final

Budget Budget Actual Variance

Revenues and Transfers In 951,996,756$ 952,961,725$ 967,239,936$ 14,278,211$

Expenditures and transfers out (952,100,000) (957,967,453) (950,993,551) (6,973,902)

Fund Balance Appropriated (103,244) (5,005,728) ** -

Revenues and transfers in

over expenditures and

transfers out 16,246,385

Fund balance at the beginnning

of the year 159,451,859

Fund balance at the end of the

year 175,698,244

** Budgeted use of fund balance represents encumbrances carried forward from FY 2011.

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Fund balance increased as a result of revenue under spent. Revenues were

over the budgeted amount. An increase of $21.7 million has occurred this past year. Total taxes were $17.4 million. Property tax collections were $7 million of this figure. Tax valuations grew more than anticipated. Tax collections were

99.6 %. Sales tax was $9 million over budget with $6.8 million being over the past year’s sales tax collections.

General Fund Revenue Variances

Variance with

Final Budget -

Favorable

Original Final Actual (Unfavorable)

Taxes:

Property 638,646,000$ 638,646,000$ 645,725,047$ 7,079,047$

Sales 111,580,804 111,868,186 120,834,877 8,966,691

Other 8,530,421 8,530,421 9,880,290 1,349,869

Total taxes 758,757,225 759,044,607 776,440,214 17,395,607

Shared Revenues

(federal/state/local) 120,840,010 123,082,348 119,334,660 (3,747,688)

Charges for services 66,634,169 65,118,800 65,471,200 352,400

Licenses and Permits 3,048,564 3,048,564 3,413,382 364,818

Other 467,788 467,788 400,410 (67,378)

Transfers in 2,249,000 2,199,618 2,180,070 (19,548)

Subtotal before Appropriated

Fund Balance 951,996,756 952,961,725 967,239,936 14,278,211

Appropriated Fund Balance 103,244 5,005,728 - (5,005,728)

Total Revenues 952,100,000$ 957,967,453$ 967,239,936$ 9,272,483$

Budgeted Amounts

• Actual revenues in the General Fund exceeded budgeted amounts by $14.3 million for fiscal year 2012. Variances in tax revenues and intergovernmental revenues comprised the majority of this difference.

• Total taxes were greater than the final budgeted amount by $17.4 million. Tax revenue increases all resulted from improved economic conditions. The increases in tax revenues were partially offset by reduced intergovernmental revenues of $3.7 million.

• Property taxes increased by $10.4 million over the prior fiscal year. $7.0 million over amount budgeted for FY 2012.

• Sales taxes had year over year increase of $6.8 million and were $9 million over budget.

• Real estate property transfer taxes, included in Other taxes, increased $1.5 million over the prior year and were $1.35 million more than the budgeted amounts.

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General Fund Expenditures

Ms. McCullen shared that expenditures were underspent by $6 million. The hiring freeze has kept the salary numbers under control. General

Administration was under budget. Health care expenses decreased by $250,000. Human Services programs were underspent by $2.4 million due to under spending in energy assistance, TANF and CPS client assistance, LME

Medicaid payments that were offset by less revenues being drawn down from the state which are reimbursement based expenditures. Public Safety was

under spent by $1 million. There is $750,000 for the Hammond Road facility due to slower hiring than originally planned.

The Fund Balance Policy requires that 15% be maintained and working capital should be maintained at least at 10%. This is important for maintaining the

AAA rating status. She shared the General Fund Balance Summary. She said the statute is used to calculate the general fund. Working Capital includes all

funds that have not been committed. The bulk of collections are received for property tax in November and December.

Variance with

Budget vs.

Actual +

Encumbrances

Favorable

Original Final Actual Encumbrances (Unfavorable)

General administration 42,631,726$ 46,753,902$ 44,734,430$ 636,800$ 1,382,672$

Human services 214,143,720 213,405,177 211,029,938 59,360 2,315,879

Education 330,402,642 330,402,642 330,402,642 - -

Community development

and cultural 25,709,071 25,794,841 25,224,320 152,137 418,384

Environmental services 7,849,575 7,960,633 7,643,371 14,516 302,746

General services

administration 21,496,357 21,561,631 21,081,514 154,765 325,352

Public safety 100,861,909 102,260,311 101,049,020 105,441 1,105,850

Transfers out 209,005,000 209,828,316 209,828,316 -

Total Expenditures 952,100,000$ 957,967,453$ 950,993,551$ 1,123,019$ 5,850,883$

Budgeted Amounts

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General Fund: Fund Balance Summary

Historical Changes in Fund Balance (in Millions)

Ms. McCullen shared the bar chart of the historical changes in fund balance.

She said that the general fund balance has been maintained and Wake County is in a strong financial position.

Ms. McCullen thanked Ms. Kim Lorbacher, Finance Services Manager, for her work as well as all of the Finance staff for their work. The last ten years of

financial statements will be available online.

Chairman Bryan commended the staff of Wake County for the AAA status. He

asked whether positive growth will occur. Ms. McCullen said the positive

-15

-10

-5

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2012

2012 2011

Increase

(Decrease)

Non-spendable:

Inventories/noncurrent receivables 680,079$ 753,870$ (73,791)$

Restricted:

Stabilization by State statute 61,577,460 53,231,845 8,345,615

Register of deeds automation 310,538 455,638 (145,100)

Committed: -

Revaluation reserve 3,468,905 2,628,106 840,799

Working capital 109,629,660 102,279,156 7,350,504

Assigned:

Planned expenditures 31,602 103,244 (71,642)

175,698,244 159,451,859 16,246,385

938,520,000 952,100,000 (13,580,000)

18.72% 16.75% 1.97%

Working Capital per financial statements 109,629,660$ 102,279,156$ 7,350,504$

Working Capital as a Percent of Next Year's Budget 11.68% 10.74% 0.94%

General Fund Balance

Subsequent Year's Adopted Budget

Fund Balance as a Percent of Next Year's Budget

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reporting should slowly continue. Commissioner Matthews ask how Wake County compares to other counties. Ms. McCullen said that other counties

were still struggling but Wake County was doing well with the excellent tax collections at 99.69%.

Recognition of Recent Technology and Public Information Awards Ms. Johnna Rogers, Deputy County Manager, recognized departments that

have won recent awards. She recognized Ms. Susan Campen, Revenue, and Ms. Pritam Ahire, Information Services for the online business listing for

property tax (OBL System). Ms. Rogers said that North Carolina Association of Government Officers

Information Excellence in Communication Awards received first place in website category. She introduced Mr. Mike Roberts, Ms. Heather Houser, Mr.

Steve Walston, Mr. Sean Fine, Chris Smith, and Mr. John Higgins. Ms. Rogers said that NCAGIO awarded first place for the Graphics Design Category for the

Infographic. NCAGIO was awarded second place for the Electronic Media Press Kit for the WakeGov launch.

Ms. Rogers said that the North Carolina Association of Government Information Officers Excellence in Communications received second place in Broadcast for the Board Goals 2012 Video. Public Affairs also received the award for the

publications for the Budget at a Glance.

Public Comments: Mr. Richard Foy, 4424 Techberry Place Raleigh, asked whether the board had an answer for the question he asked in April concerning authorization of

services being provided by NAMI. Chairman Bryan said he understood that staff had met with Mr. Foy and addressed his questions. He stated Mr. Foy

may not have liked the answers he received. Mr. Foy said that all the information had not been received. He read aloud information about the questions that he had presented.

Chairman Bryan said that he does not view these issues in the same way and asked the county manager and county attorney to bring closure to the

questions that have been raised for Mr. Foy. Mr. Foy said that at this point it was unnecessary because he had appeared before the commissioners for nine

months. He said in his opinion the question, authorization or qualifications of the provider has not been addressed. He said he appreciated the opportunity

to speak to his concerns.

Mr. Charles Griffin, Executive Director of Can I Live Inc., spoke of the

ineffectiveness and unfairness of the current child support laws and invited the board to the upcoming Father Initiative event. He spoke of the incarceration of fathers and how it takes them out of the workforce. He said there was a need

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for the county to get involved in reshaping child support laws. He asked the board to consider supporting a resolution to change the child support laws.

Consent Agenda Commissioner Sullivan motioned, seconded by Phil Matthews, to the consent

agenda as presented. The motion passed unanimously.

Multi-Year Agreements to Provide Solid Waste Management Consulting,

Engineering and Environmental Monitoring Services

Commissioner Sullivan motioned, seconded by Phil Matthews, to authorize the County Manager to execute five-year agreements with CDM Smith Inc., HDR

Engineering, Inc., Joyce Engineering, Inc., SCS Engineers, PC, and Smith Gardner, Inc. to provide Solid Waste Management Consulting, Engineering and Environmental Monitoring Services, subject to terms and conditions acceptable

to the County Attorney. The motion passed unanimously.

Accept and Appropriate $7,760 in Department of Homeland Security

Community Emergency Response Team Grants Commissioner Sullivan motioned, seconded by Phil Matthews, to accept and

appropriate the Department of Homeland Security Community Emergency Response Team (CERT) program grants via the North Carolina Department of

Public Safety and the Governor’s Citizen Corp Office on behalf of: a. the Apex CERT in the amount of $1,899.62; b. the Cary CERT in the amount of $2,000.00;

c. the Morrisville CERT in the amount of $2,000 and; d. the Carolina Preserve CERT in the amount of $1,860.30,

with funds to be appropriated in the FY 2013 Grants and Donations budget system and; authorize the County Manager to sign the accompanying

Memorandums of Agreement, Grant Award Letters and permit the sub-granting of these awards to the respective Community Emergency Response Teams. The motion passed unanimously.

Appropriate $679,335 in the Major Facilities Fund for Payment to the Centennial Authority

Commissioner Sullivan motioned, seconded by Phil Matthews, to appropriate $679,335 for the Centennial Authority, as set forth in the 13th and 18th

Amendments to the Revised Interlocal Agreement Relating to Room Occupancy and Prepared Food and Beverage Tax Revenues Agreement. The motion

passed unanimously.

Amend the Facility Use Agreement with Alliance Behavioral Healthcare's

Use of the Community Services Center at Whitaker Mill

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Commissioner Sullivan motioned, seconded by Phil Matthews, to approve the amendment to the Facilities Use Agreement with Alliance Behavioral

Healthcare's use of the Community Services Center at Whitaker Mill, subject to terms and conditions acceptable to the County Attorney. The motion passed

unanimously.

FIRST AMENDMENT TO LICENSE AGREEMENT

THIS FIRST AMENDMENT TO LICENSE AGREEMENT (“First Amendment”) is made and entered as of the

____ day of ____________________, 2012, between County of Wake, North Carolina (hereinafter “Owner”) and

Alliance Behavioral Healthcare (hereinafter “Licensee”).

WITNESSETH:

WHEREAS, Owner and Licensee entered into that certain License Agreement dated as of

_____________________, 2012 (the “License”) for the use of approximately 17,570 square feet located on the

second floor of the Community Center located at 401 E. Whitaker Mill Road, Raleigh, Wake County, North Carolina

(the “Premises”), said Premises being more particularly described in the License; and

WHEREAS, Licensee has a need to extend the use of the Premises beyond the Original Term as a

continued temporary location to conduct its business operations; and

WHEREAS, the Owner in continued recognition of the public purpose of Licensee’s use agrees to donate

the rental value of the Premises as an in-kind contribution for an additional two calendar months beyond the

Original Term;

WHEREAS, the Owner and Licensee desire to amend the License upon the terms and conditions

hereinafter provided.

NOW, THEREFORE, for and in consideration of the premises and other good and valuable considerations,

the receipt and sufficiency of which are hereby acknowledged, Owner and Licensee agree to amend the License as

follows:

1. The duration of this License shall extend for an additional three months through and including March 31, 2013 and the Owner shall donate the rental value of the Premises during such extended period of occupancy as an in-kind contribution upon the same terms and conditions as during the original Term.

2. Absent further agreement of the parties, if the Licensee is still occupying the Premises after the three month extension of the original Term, then the Owner shall charge the Licensee the fair rental value of the Premises as set forth in Section 4 beginning April 1, 2013.

3. Except as amended by this First Amendment, the terms of the License Agreement are hereby affirmed in all respects; and the License Agreement as amended by this First Amendment shall remain enforceable in accordance with its terms.

IN WITNESS WHEREOF, each Party has caused this License Agreement to be executed in multiple

copies, each of which shall be deemed an original, as the act of said Party. Each individual signing below warrants

that he/she is duly authorized by the Party to sign this License Agreement and to bind the party to the terms and

conditions herein.

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LICENSEE:

Alliance Behavioral Healthcare

By: _______________________________ Date: _________________________

Ellen Holliman

Executive Director

OWNER:

County of Wake

By: _______________________________ Date: __________________________

David C. Cooke

County Manager/ Designee

By: _______________________________ Date: __________________________

D.L. Goodwin

General Services Manager

This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control

Act.

Conveyance of Van to Community Workforce Solutions Commissioner Sullivan motioned, seconded by Phil Matthews, to adopt a

resolution approving the conveyance of a 2010 Ford Econoline E350 van to Community Workforce Solutions, Inc. pursuant to N.C.G.S. 160A-279. The

motion passed unanimously.

Assignment of Landfill Gas and Site License Agreement Commissioner Sullivan motioned, seconded by Phil Matthews, to authorize the County Manager to execute a Consent to Assignment which shall assign the Landfill Gas and Site License Agreement between Wake county and Industrial

Power Generating Company, LLC to Ingenco Renewable Development, LLC subject to terms and conditions acceptable to the County Attorney. The motion

passed unanimously.

CONSENT TO ASSIGNMENT

of Wake County

dated December __, 2012

Re: LANDFILL GAS AND SITE LEASE AGREEMENT

of July 7, 2011

between

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Wake County and Industrial Power Generating Company, LLC

CONSENT TO ASSIGNMENT

This Consent to Assignment is dated this __ day of December, 2012 (the “Effective

Date”) among Wake County, North Carolina; Industrial Power Generating Company,

LLC, a Delaware limited liability company (“INGENCO”); and INGENCO Renewable

Development, LLC (IRD”), also a Delaware limited liability company.

WHEREAS, Wake County and INGENCO entered on July 7, 2011 the Landfill Gas and Site

Lease Agreement, providing for certain rights and obligations of the parties thereto at

and concerning the Wake County Landfills as defined therein;

WHEREAS, the Landfill Gas and Site Lease Agreement provides for its assignment by

INGENCO, but only with the approval and consent of Wake County;

WHEREAS, INGENCO wishes to assign to IRD the Landfill Gas and Site Lease Agreement,

and IRD wishes to accept that assignment;

WHEREAS, INGENCO and IRD are sister companies;

WHEREAS, INGENCO and IRD have represented and do represent to Wake County that

such assignment is for the purpose of assisting in funding of the project of INGENCO/IRD

under the Landfill Gas and Site Lease Agreement and the collateralization thereof; and

WHEREAS, Wake County wishes to authorize the assignment of the Landfill Gas and Site

Lease Agreement from INGENCO to IRD.

THEREFORE, for good and valuable consideration, the receipt and sufficiency of which

are acknowledged by the Parties to this Consent to Assignment, the Parties agree as

follows.

1. Effective as of the Date first above written INGENCO has assigned and IRD has

accepted all of the rights, title and interest in and to the Landfill Gas and Site Lease

Agreement, including all rights to real estate and other assets provided therein, the

effectiveness of such assignment pending only the consent of Wake County.

2. The Letter of Credit pursuant to Article XII of the Landfill Gas and Site Lease

Agreement, issued on behalf of INGENCO to and for the benefit of Wake County,

remains valid and in force pursuant to its terms, and both INGENCO and IRD so

represent and warrant to Wake County.

3. The insurance required pursuant to Article XIII of the Landfill Gas and Site Lease

Agreement includes IRD as a named insured and remains valid and in force pursuant to

its terms, and both INGENCO and IRD so represent and warrant to Wake County.

4. IRD shall and does assume the performance of and agrees to observe all obligations,

representations and warranties under the Landfill Gas and Site Lease Agreement,

including all such obligations accruing heretofore or at any time.

5. Wake County agrees to and consents to the assignment of the Landfill Gas and Site

Lease Agreement to IRD as provided herein.

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6. The authorization of this Assignment shall not operate to release INGENCO in any way

from any of its obligations under the Landfill Gas and Site Agreement; and INGENCO

acknowledges that it shall remain liable for the performance of obligations,

representations, and warranties under the Landfill Gas and Site Agreement.

7. This Consent to Assignment shall be governed by and construed in accordance with

the laws of the State of North Carolina.

[This space intentionally left blank.]

IN WITNESS WHEREOF, intending to be legally bound hereby, the Parties have caused

this Consent to Assignment to be executed and delivered by their duly authorized

officers or representatives as of the date first above written.

Industrial Power Generating Company, LLC

By: INGENCO Holdings, LLC Date: ______________________________

Sole Member

By: ___________________________

Title: ___________________________

INGENCO Renewable Development, LLC

By: INGENCO Holdings, LLC Date: ______________________________

Sole Member

By: ___________________________

Title: ___________________________

WAKE COUNTY

By: ____________________________ Date: _____________________________

David C. Cooke

County Manager

Reallocation of $100,273 in Automation CIP Element for EMS Data Analytics Project

Commissioner Sullivan motioned, seconded by Phil Matthews, to reallocate $100,273 of savings from three automation CIP projects to create a new EMS Data Analytics project in the major automation projects program. The motion

passed unanimously.

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County Capital Projects Fund

FROM:

Element Program Project UnitCurrent

AppropriationFunds Available

Automation Computer

Equipment

General Computer

Equipment

Replacement

059A 71,782.61 71,236

Automation Enterprise

Infrastructure

Enterprise

Infrastructure

General

085A 32,572.70 14,766

Automation Enterprise

Infrastructure

Telecom/Desktop/

Helpdesk Tools

226A 140,000.00 14,271

Total 100,273

TO:

Element Program Project UnitCurrent

Appropriation Funds Available

Automation Major Projects EMS Data Analytics New - 100,273

Tax Committee Recommendations for Value Adjustments, Late Filed Applications, Collections Refunds and Tax Collections

Commissioner Sullivan motioned, seconded by Phil Matthews, to approve the attached recommendation by the Tax Committee for Value Adjustments, Late

Filed Applications, Collections Refunds and Tax Collections. The motion passed unanimously. 1. Report Collections – Wake County Only – October 2012

2. Wake County In-Rem Foreclosure Progress Report – October 2012

3. Consideration of Requests for Adjustments, Rebates, and/or Refunds of Penalties: (Wake County and Town of Cary), (Wake County and City of Raleigh), (Wake County

and Town of Wake Forest), (Wake County and Town of Zebulon)

4. Consideration of Requests for Tax Deferment: (Wake County and City of Raleigh)

5. Consideration of Refund for Taxes, Interest, and Penalties: (Wake County Only),

(Wake County and Town of Cary), (Wake County and Town of Fuquay-Varina), (Wake County and City of Raleigh)

6. Consideration of Requests for Tax Relief Exclusions: (Wake County and Town of

Apex), (Wake County and Town of Fuquay-Varina), (Wake County and Town of

Garner), (Wake County and City of Raleigh), (Wake County and Town of Wake Forest)

7. Consideration of Requests for Exemptions: (Wake County and Town of Knightdale),

(Wake County and City of Raleigh)

8. Rebate Details: (Wake County and Town of Angier), (Wake County and Town of

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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 City of Raleigh), (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)

Regular Agenda

Certification of 2012 Bond Referendum Results Ms. Nicole Kreiser, Wake County Debt Manager, reported that on November 6, 2012 the voters approved the $200 million Community College Bond

Referendum which would finance the next building program for Wake Technical Community College. She said they anticipate the bonds for the $210.2 million building program for Wake Technical Community College will be

issued in the Spring of 2013. The Board of Elections has certified to the Wake County Board of Commissioners that the result of the proposed $200 million

General Obligation Bond referendum was 308,601 or 72.4% votes for approval of the Bond Order and 114,514 or 27.6% of the votes were against approval of

the Bond Order. She asked that the Board adopt the Resolution Declaring the Result of the Bond Referendum certifying the results and declare the General Obligation bonds are in effect.

Dr. Stephen Scott, President of Wake Technical Community College, thanked

the board for the two unanimous votes to put the bond referendum before the voters and thanked the voters for approval. He said he believed the voters

obviously saw the connection between education and job placement. He stated they would be good stewards of the funds that the voters had entrusted with

Wake Technical Community College.

Betty Lou Ward motioned, seconded by Phil Matthews, to adopt the Resolution

declaring the results of the November 6, 2012 bond referendum approving $200 million of Community College Bonds and declared the Bond Order authorizing the General Obligation Bonds now in effect. The motion passed

unanimously.

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 December 3, 2012, with Joe Bryan, Chairman, presiding. The

following Commissioners were:

PRESENT: Paul Coble, Tony Gurley Phil Matthews, Caroline Sullivan, Betty Lou Ward and James

West.

ABSENT: N/A

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ALSO PRESENT: David Cooke, County Manager, Scott Warren, County Attorney, Susan Banks,

Clerk to the Board, Nicole Kreiser, Wake County Debt Manager, and Dr. Stephen Scott.

* * * * * *

The Board of Commissioners received from the Wake County Board of Elections a certified copy

of the proceedings of said Board of Elections taken on November 16, 2012, evidencing said Board’s

determination of the result of the canvass of the returns of the bond referendum held in the County of

Wake, North Carolina on November 6, 2012, upon the question of approving $200,000,000 Community

College Bonds of said County.

After said proceedings had been considered and reviewed by the Board of Commissioners, Ms.

Nicole Kreiser, introduced the following resolution the title of which was read and copies of which had

been previously distributed to each Commissioner:

RESOLUTION DECLARING THE RESULT OF THE BOND REFERENDUM

HELD IN THE COUNTY OF WAKE, NORTH CAROLINA ON NOVEMBER 6,

2012 UPON THE QUESTION OF APPROVING $200,000,000 COMMUNITY

COLLEGE BONDS

BE IT RESOLVED by the Board of Commissioners for the County of Wake, North Carolina:

Section 1. The Board of Commissioners for the County of Wake, North Carolina having

received from the Wake County Board of Elections certified copies of the proceedings of said Board of

Elections taken on November 16, 2012, evidencing said Boards of Election’s determination of the result

of the canvass of the returns of the bond referendum held in the County of Wake, North Carolina on

November 6, 2012, upon the question of approving $200,000,000 Community College Bonds of said

County, does hereby declare and certify the result of said referendum to be the result which is set forth in

the following statement of the result of said referendum, which statement has been prepared by said

Board of Commissioners:

STATEMENT OF THE RESULT

of the

BOND REFERENDUM

held in the

COUNTY OF WAKE, NORTH CAROLINA

on November 6, 2012

UPON THE QUESTION OF APPROVING

$200,000,000 COMMUNITY COLLEGE BONDS

At a bond referendum held in the County of Wake, North Carolina on November 6, 2012,

654,777 voters were registered and qualified to vote.

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At said referendum 308,601 votes were cast for the order adopted on August 6, 2012, authorizing

not exceeding $200,000,000 Community College Bonds of the County of Wake, North Carolina, for the

purpose of providing funds, together with any other available funds, to construct, renovate, expand,

improve and equip community college facilities for Wake Technical Community College, including,

without limitation, the acquisition of land, easements and rights-of-way in connection therewith, in Wake

County, and the authorization of the levy of taxes in an amount sufficient to pay the principal of and the

interest on said bonds, and 114,514 votes were cast against said order, and that a majority of the qualified

voters of the County of Wake, North Carolina who voted thereon at said referendum voted in favor of

said order, said order was thereby approved and is in force and effect.

Board of Commissioners for the

County of Wake, North Carolina

Section 2. The Clerk to the Board of Commissioners for the County of Wake, North

Carolina shall file a copy of the foregoing statement of the result of said referendum in her office and

shall publish such statement once in The News and Observer. A statement in substantially the following

form shall be published with the foregoing statement:

“Any action or proceeding challenging the regularity or validity of this bond referendum must be

begun within 30 days after [date of publication].”

Section 3. This resolution shall take effect upon its passage. Upon motion of Commissioner

Betty Lou Ward, seconded by Commissioner Phil Matthews, the foregoing resolution entitled:

“RESOLUTION DECLARING THE RESULT OF THE BOND REFERENDUM HELD IN THE

COUNTY OF WAKE, NORTH CAROLINA ON NOVEMBER 6, 2012 UPON THE QUESTION OF

APPROVING $200,000,000 COMMUNITY COLLEGE BONDS” was passed by the following vote:

Ayes: Joe Bryan, Paul Coble, Tony Gurley Phil Matthews, Caroline Sullivan, Betty Lou Ward

and James West.

Noes: N/A

* * * * * *

I, Susan J. 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 the recorded minutes of said Board of

Commissioners for said County at a regular meeting held on December 3, 2012, said record having been

made in the minutes of said Board of Commissioners and is a true copy of so much of said proceedings of

said Board of Commissioners as relates in any way to the declaration of the result of the bond referendum

held on November 6, 2012 upon the question of approving $200,000,000 Community College Bonds of

said County.

I DO HEREBY FURTHER CERTIFY that proper notice of such regular meeting was given as

required by North Carolina law.

17

I DO HEREBY FURTHER CERTIFY that a copy of the statement of the result of the referendum

adopted by the resolution set forth in the foregoing transcript has been filed in my office.

WITNESS my hand and official seal of said County this 3rd day of December, 2012.

Clerk to the Board of Commissioners

[SEAL]

Chairman Bryan commended Dr. Scott for a job well done.

Reallocate and Appropriate Wake Tech 2007 Building Program Funds Mr. Wendell Goodwin said the resolution for approval was related to the 2007

bond program funds. In October 2011, the Board appropriated $10 million in county funds to the classroom/office building on the main campus that will

build 40,000 square feet for $10 million. Since that time, they have done final programming and determined additional square footage would be required for additional administration space to adequately house staff support for the

continued growth of the college. The amount of growth represents 8,721 square feet. Wake Tech requested that $73,426 of savings from the 2004

building program and $1,857,179 of savings from three projects within the 2007 building program be reallocated to the Main Campus Classroom/Office

Building. The total square footage would be 48,721.

Phil Matthews motioned, seconded by Tony Gurley, to adopt the resolution

reallocating $73,426 from the Wake Tech 2004 Building Program and $1,847,179 from three projects within the Wake Tech 2007 Building Program to the Main Campus Classroom/Office Building. The motion passed

unanimously.

Resolution R-2012- 2004 and 2007 Building Program Reallocation and Appropriation

WHEREAS, Wake Technical Community College is engaged in the 2007 Building

Program approved by voters in October 2007; and

WHEREAS, Wake Technical Community College has requested a reallocation of 2004

Building Program Funds to the 2007 Building Program and a reallocation of savings from three

projects in the 2007 Building Program funds to the Main Campus Office/Classroom Building

project;

NOW, THEREFORE, BE IT RESOLVED that the Wake County Board of Commissioners

hereby reallocates and appropriates funds as follows:

18

ProjectCurrent

Appropriation

Amount

Reallocated

Revised

Appropriation

From (2004 Building Program)

WTCC '05 401 North Campus Buildings 29,307,933$ 73,426$ 29,234,507$

From (2007 Building Program)

Western Wake Classroom Buildings 593,283 246,068 347,215

Northern Campus Parking Lot F 10,000,000 111,111 9,888,889

Northern Campus Building E 21,913,794 1,500,000 20,413,794

Subtotal From: 1,930,605$

To:

2007 Building Program

Main Campus Classroom/Office Building 6,000,000$ 1,930,605 7,930,605$

Adopted this the 3rd day of December 2012.

Wake County Board of Commissioners

_______________________________

Joe Bryan, Chairman

Allow Naming Rights for Wake Tech's Health Services Campus and

Buildings Mr. Mort Congleton, Executive Director of Wake Technical Community College

Foundation, said the Foundation is a 501C3 nonprofit and its purpose is to assist faculty, staff and students. They are in a major gifts campaign to help

fill gaps in the programs. They set a goal of $10 million for their fundraising campaign and have exceeded it by over $1 million and reset their goal to $12 million. He said they hope to raise $15 to $20 million to fill in gaps from state,

federal or local funds.

Summary information provided:

The land and buildings at the Health Services Campus (adjacent to WakeMed)

are owned by Wake County, but operated by Wake Technical Community

College. Wake Technical Community College has a naming rights policy, which

has been approved by the Wake Technical Community College Board of

Trustees. The policy has been used to raise private dollars to support the

Community College.

Wake Tech, through the Wake Technical Community College Foundation,

desires to apply their naming rights policy to the Health Sciences Campus and

Buildings.

19

The Wake Technical Community College Foundation’s mission is to partner

with corporations, foundations and individuals to raise private resources to

support Wake Technical Community College’s institutional and instructional

needs for the benefit of faculty, staff and students. Funds raised by the

Foundation help fill gaps in state and local funding, particularly in the areas of

professional development, equipment, and student support (scholarships).

Gifts are only accepted if they meet a need within the College or are aligned

with the College’s goal of providing effective lifelong learning, training, and

workforce development through world-class programs and services.

A donor wishes to name a building on the Health Sciences Campus for $1

million over ten years with the funding designated for nurse training. Per the

Foundation’s endowment policy, two distinct funds would be established by this

donation: an endowment principal fund (permanently restricted account) and

an endowment spendable fund (temporarily restricted account). Any interest

earned on the permanently restricted account would be deposited into the

temporarily restricted account and allocated per the Foundation’s four percent

spending rate.

Once the first year payment is fulfilled, $4,000 would be the allocation amount

available to provide scholarships, emergency financial assistance, equipment,

and/or faculty training for the nursing program (per the donor’s designation).

In year two, $8,000 would be available. After fulfillment of the tenth year

payment, $40,000 would be the allocation available and this would be the level

continued thereafter.

Tony Gurley motioned, seconded by Phil Matthews, to approve Wake Tech's request to allow Naming Rights for Wake Tech's Health Services Campus and

Buildings. The motion passed unanimously.

Amend Letter of Intent with UNC Health Care and Alliance Behavioral

Healthcare for Services at WakeBrook Campus Ms. Denise Foreman, Assistant to the County Manager, said that in October

2012, she brought a letter of intent to the board with UNC Health Care, Alliance Behavioral Healthcare and Wake County as parties to modify the

services being offered at WakeBrook Campus. UNC has agreed to take over provision of services at WakeBrook and to upfit the facility to add additional services. They have worked towards an implementation date of January 1,

2013. There have been challenges of licensing of the services and regulatory requirements so they will not be ready for implementation on January 1. She

presented an amendment to the letter of intent that states they will work with UNC to bring on the crisis and assessment services by February 1, 2013 and

the other services will come on as licensure is approved and as upfit complete. She said the goal is to have recovery services up by March 1, 2013, services provided by Daymark by May 1, 2013 and the new 16 inpatient hospital beds

20

by July 1, 2013. She said the "go live" date of February 1 for the crisis and assessment is a firm date. All other services should be operational by July 1,

2013. Commissioner West asked about the process being procedural. Ms. Foreman

said that the licensure for the 32 beds has to be met under state and federal requirements. She said this is taking longer than anticipated.

James West motioned, seconded by Paul Coble, to approve an amendment to the Letter of Intent with UNC Health Care and Alliance Behavioral Healthcare

for provision of behavioral services at WakeBrook Campus, subject to the terms and conditions acceptable to the County Attorney. The motion passed unanimously.

STATE OF NORTH CAROLINA

COUNTY OF WAKE

AMENDMENT TO LETTER OF INTENT

This AMENDMENT TO LETTER OF INTENT (LOI), made and entered into this _____ day of

December, 2012 by and between WAKE COUNTY, a public body politic and corporate of the State of North

Carolina, hereinafter referred to as "WAKE COUNTY," THE UNIVERSITY OF NORTH CAROLINA HEALTH

CARE SYSTEM, a State agency and an affiliate entity of the University of North Carolina, on behalf of itself and its

affiliated entities, including UNC Hospitals, hereinafter referred to collectively as “UNCHCS,” and ALLIANCE

BEHAVIORAL HEALTHCARE, a local political subdivision of the State of North Carolina under N.C. Gen. Stat.

§122C-116, hereinafter referred to as “ALLIANCE.”

WITNESSETH:

WHEREAS, WAKE COUNTY, UNCHCS, and ALLIANCE have previously entered into a Letter of

Intent (“LOI”) on or about October 29, 2012 which sets forth the intent of the parties to transition the provision of

certain behavioral health services at Wake County’s WakeBrook campus to UNCHCS consistent Alliance’s

statutorily prescribed management responsibilities for the delivery of such services; and

WHEREAS, all parties have proceeded in good faith to advance the terms of the LOI but have encountered

unexpected delays in moving forward with the transition plan under the original timeframe because of licensure

issues; and

WHEREAS UNCHCS now expects to take over operations in stages, beginning with Crisis and

Assessment services on February 1, 2013 (instead of assuming all operations on January 1, 2013, as originally

intended); and

WHEREAS the LOI by its terms will terminate on December 31, 2012; and

WHEREAS, the parties intend to complete the necessary agreements for review and consideration by the

Wake County Commissioners at its next meeting on January 7, 2013:

NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged,

the Letter of Intent previously entered by the parties is hereby amended to extend the Term of the LOI until the

21

earliest of (a) written termination by any of the parties hereto; (b) execution of agreements by the parties, or some

combination of the parties or any of their affiliates, that address the subject matter hereof; or (3) June 30, 2013.

Except as specifically set forth herein, all other rights, terms, conditions, and considerations currently

contained in the Letter of Intent previously executed by the Parties shall remain in full force and effect with no

modification.

IN TESTIMONY WHEREOF, WAKE COUNTY, UNCHCS and ALLIANCE through their authorized

officers and by their own hands have hereunto set forth their hands and seals of the day and year first above written.

WAKE COUNTY

By: _____________________________________

David C. Cooke

Manager

Date: _____________________________________

THE UNIVERSITY OF NORTH CAROLINA HEALTH CARE SYSTEM

By: _____________________________________

William L. Roper, MD, MPh

CEO

Date: _____________________________________

ALLIANCE BEHAVIORAL HEALTHCARE

By: ________________________________________

Ellen Holliman

Area Director

Date: ________________________________________

Approve Structure of Alliance Behavioral Healthcare Board Ms. Denise Foreman, Assistant to the County Manager, said that in April 2012,

the Board approved an inter-local agreement with Durham County creating Alliance Behavioral Healthcare, a new multi-county area authority (or LME) for

the management of behavioral health services for Wake and Durham counties. The board structure included eight members from Durham County, six

members from Wake County and the LME appointing a member from each Johnston and Cumberland counties. In July, there was a legislative change dictating the board structure for LMEs that will become MCOs. There was a

provision made allowing LMEs to have a resolution presented to each of the counties in the service area to approve an alternative structure which would be

Wake County's preferred structure for the LME/MCO. Ms. Ellen Holliman, Executive Director of Alliance Behavioral Healthcare has been to each of the

other counties which have all unanimously approved the resolution. Ms. Foreman said there are eight appointments for specific categories. She said

22

that legislation requires that the additional changes be made by January 1. There will be no need for appointment changes in Wake County because the

person representing the clinical category can also represent the interest of children category. She said staff recommends approval of the resolution so it

can be presented to the Secretary so they can then work with Alliance and the other counties to get the board back to the preferred original structure. They

can make the change with the merger of Cumberland County or have a modified agreement with the other counties.

Commissioner West asked about the change with Cumberland County. Ms. Foreman said when the legislation changed, it was determined that the best

option for Wake County was to merge with Durham County for a multi-county authority. Cumberland and Johnston counties are contracting with Durham

County. Alliance is the MCO for Johnston and Cumberland counties through a contract with them, not through the multi-county area authority. Alliance will be managing the funds on behalf of Cumberland and Johnston counties but

they have not become part of the entity. Ms. Holliman has been working with Johnston and Cumberland counties exploring paths that could work for their

services. If they merge, it would be an area authority. Commissioner Ward asked why Durham County has eight members and Wake County only has six

members on the area authority. Ms. Foreman said that Durham County was successful in getting their Medicaid Waiver and became the lead county and they were able to negotiate eight seats.

Commissioner West asked if Wake County having fewer seats on the board,

would weaken the county's authority or strength. Ms. Foreman said there is no proposal for the structure at this time, if a merger were to occur but the

structure would change. She said all the seats could be on the table for negotiation. Commissioner Gurley stated more efficiency would be gained with more people. Commissioner Ward asked if there is a possibility of a merger.

Ms. Ellen Holliman, Director of Alliance Healthcare, stated that Johnston and

Cumberland counties were already included in the 1.7 million population count. Commissioner Gurley said they could contract with a different agency

since they are not part of the merger. Ms. Holliman said they have contracted for two years based on recent legislation. She said the counties in the area are aligned with a MCO and there are some MCOs that are still becoming and

working on meeting requirements to be designated as MCOs but until those decisions are made they are assuming they are still going forward.

Commissioner Sullivan motioned, seconded by Betty Lou Ward, to adopt the

resolution approving the alternative board structure for Alliance Behavioral Healthcare Area Authority. The motion passed unanimously.

Board of County Commissioners

of

Wake County

23

Resolution Approving the alternative board structure for Alliance Behavioral

Healthcare Area Authority pursuant to N.C. Gen. Stat. § 122C-118.1

WHEREAS, the State of North Carolina has passed Session Law 2011-264 requiring statewide

expansion of the 1915(b)/(c) Medicaid Waiver to be managed by Area Authorities operating as Managed

Care Organizations (hereinafter “MCO”) to manage local mental health, substance abuse and

developmental disability services; and

WHEREAS, the Boards of County Commissioners of Durham and Wake Counties by joint

resolution approved the creation of Alliance Behavioral Healthcare, a multicounty area authority created

pursuant to N.C. General Statute 122C-115 for the provision of mental health, developmental disabilities

and substance abuse services effective April 23, 2012; and

WHEREAS, the General Assembly revised N.C.G.S. 122C-118.1 “Structure of area board” to

require boards of county commissioners within a multicounty area with a catchment population of at least

1,250,000 to have the option to appoint members of the area board in a manner or with a composition

other than as required by each county unanimously adopting a resolution than that effect and receiving

written approval from the Secretary of DHHS by January 1, 2013.

NOW, THEREFORE, BE IT RESOLVED by the Wake County Board of County

Commissioners that:

1. The Governance of Alliance shall be established as follows:

The Area Board will consist of sixteen (16) members. Eight (8) members shall be appointed by

Durham County, six (6) members shall be appointed by Wake County and Two seats shall be at

large. No member shall serve more than three (3) consecutive full terms. The process for

appointment shall be according to the following general terms and conditions:

a. Eight (8) Area Board members shall be appointed by the Durham County Board

of Commissioners. Seated members now serving on the The Durham Center

Board shall transition to the new Area Board and serve terms consistent with the

requirements set forth in N.C. Gen. Stat. § 122C-118.1(d). Board representatives

will include one (1) with business expertise, one (1) with financial expertise and

one (1) person who represents the interest of children as required by G.S. 122C-

118.1(a). Additionally two (2) consumers/ families/ advocates will be appointed.

A Board member may concurrently represent two categories of membership.

b. Six (6) Area Board members shall be appointed by the Wake County Board of

Commissioners. Board representatives will include one (1) with business

expertise, one (1) with financial expertise and one (1) person who represents the

interest of children as required by N.C. Gen. Stat. § 122C-118.1(a). Additionally

two (2) consumers/ families/ advocates will be appointed. A Board member may

concurrently represent two categories of membership.

c. The area authority shall fill the two (2) at large seats consistent with the criteria

currently required by the Alliance Behavioral Healthcare by-laws. The at large

seats shall initially be filled by one (1) representative from each Johnston and

Cumberland counties and said appointees shall hold their seat for the duration of

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the contract agreement between the Alliance and the respective counties. Upon

termination of the contract agreement between the new Alliance and Johnston

and Cumberland counties, the at large seats shall be filled in accordance with

needs and wishes of Alliance Behavioral Healthcare. Other Area Board

requirements will be jointly developed consistent with the requirements of N.C.

Gen. Stat. § 122C-118.1. Alliance Behavioral Healthcare Area Authority will

accept applications, interview and recommend appointments to the Board of

County Commissioners.

d. Significant actions by the Alliance Area Authority Board will require eleven (11)

votes. Significant actions shall include, decisions concerning the annual budget

and amendments according to N.C. Gen. Stat. § 159; personnel policies;

employee benefit plans; the selection and dismissal of the Chief Executive

Officer; and, adoption, amendments and other changes to the Area Authority by-

laws.

The Chairman of the Board declared this Resolution adopted this 3rd day of December, 2012.

Wake County Board of Commissioners

By: ________________________________

Chairman

__________________

Clerk to the Board

Amendment Number 2 to the Interlocal Agreement with the Town of Cary and Durham County for the Jordan Lake Water Reclamation Project

Mr. John Roberson, Wake County Solid Waste Director, said the project was initiated with the Town of Cary, Durham County and Wake County to provide reclaimed water from the Durham County Triangle Wastewater Treatment Plant

(WWTP) to RTP South and the surrounding area. Wake County has a portion of RTP in the county. In 2010, Phase 1 received some bids which provided

savings in the project in the middle of an economic downturn. He said the original project cost was $14 million and they saved enough on bids to make

the project costs, $12 million. Since then, the Town of Cary has secured some grant funds for Phase 2. He said due to the grant, there was a need to separate the projects between Phase 1 and Phase 2. The current grant expires in June

2013 and Phase 2 is not yet under construction. The proposed ILA removes Phase 2 from the partnership and it becomes a Town of Cary project. With this

change, the project costs have been reduced from $12 million to $10 million. The amendment to the ILA reduces Wake County's local share from $3.3

million to $2.2 million but maintains total grant funds around $920,000. He said this was put together at a staff level and is recommended to the board.

25

This reflects an increase on Phase 1 in grant funds from about twenty percent to twenty-nine percent. Durham County approved the amendment to the ILA

last week and the Town of Cary is scheduled to consider it on December 13th. He said there will be expected savings to the county's capital funds as part of

these changes but they will not be reflected until final payments and reimbursements have been received from grants prior to June 30th, 2013. Mr.

Roberson said he would have to return to the board for additional actions as needed for the process.

Chairman Bryan referred to one of the charts and questioned the savings by each Wake County, Durham County, and the Town of Cary. Mr. Roberson said there are no county funds in the Phase 2 part of the project. He said that the

project construction has been completed for Phase 1. Commissioner West asked about the wastewater treatment. Mr. Roberson said that the water is

treated by Durham County. Wake County uses the reclaimed water for irrigation.

Betty Lou Ward motioned, seconded by James West, to approve the Amendment Number 2 to the Interlocal Agreement for Reclaimed Water

Facilities with the Town of Cary and Durham County subject to terms and conditions acceptable to the County Attorney. The motion passed unanimously.

STATE OF NORTH CAROLINA

COUNTY OF WAKE

AMENDMENT NO. 2

TO

INTERLOCAL AGREEMENT FOR RECLAIMED WATER FACILITIES

This Amendment No. 2 is made and entered into on _____________________, by and between

the COUNTY OF WAKE, a political subdivision of the state of North Carolina (hereafter “WAKE COUNTY”),

and the COUNTY OF DURHAM, a political subdivision of the state of North Carolina (hereafter “DURHAM

COUNTY”), and the TOWN OF CARY, a North Carolina Municipal Corporation (hereafter “CARY”).

W I T N E S S E T H:

THAT WHEREAS, WAKE COUNTY, DURHAM COUNTY and CARY entered into an

“Interlocal Agreement for Reclaimed Water Facilities” dated June 19, 2006 (hereafter “Agreement”),

which was amended by “Amendment No. 1 to Interlocal Agreement for Reclaimed Water Services” dated

December 1, 2009 (hereafter “Amendment No. 1”) that collectively provide for the development of

environmental documents, design, and construction associated with the Jordan Lake Water Reclamation

and Reuse Project;

26

WHEREAS, the USEPA grant assistance agreement ends June 30, 2013, and the USEPA has

changed the grant reimbursement approach, making it advantageous to all parties to apply remaining

grant funding to portions of the project that have been constructed to date;

WHEREAS, WAKE COUNTY, DURHAM COUNTY and CARY desire to modify the

Agreement, as amended to remove the construction of the portion of Cary’s pipeline south of

McCrimmon Parkway and modify the grant fund share arrangements for construction accordingly; and

NOW THEREFORE, in consideration of the premises and the respective rights, powers, duties,

and obligations hereinafter set forth, the parties hereby agree to as follows:

1. The map attached to the Agreement is superseded and deleted.

2. Paragraph 5 of Amendment No. 1 (which superseded and replaced paragraph 6 of the Agreement) is amended as follows:

5. FINANCIAL COMMITMENT

a. WAKE COUNTY has received a commitment from the federal government in the form of a grant in the amount of $3 million, less federal and state standard deductions (hereafter “Grant Funds” or “Grant”). After aforementioned deductions, the Grant is worth $2,877,000.

b. Design and other pre-construction costs for the Project equal $1,450,000 (hereafter “Design Project Costs”). The Grant provides that only 55 percent of eligible Design Project Costs may be paid for with Grant Funds. The remaining Design Project Costs have been paid by WAKE COUNTY, DURHAM COUNTY and CARY. The following table shows the Design and other Pre-construction Project Costs and reimbursement amounts for each party:

Projected DESIGN AND

PRE-CONSTRUCTION Costs

Fifty-Five

Percent Federal

Share

Forty-Five

Percent

Local Share

WAKE COUNTY $545,919 $300,256 $245,663

DURHAM COUNTY $422,172 $232,195 $189,977

CARY $481,909 $265,049 $216,860

Total $1,450,000 $797,500 $652,500

c. Estimated costs for construction related activities associated with this project are $8,608,000. This includes actual construction along with the costs of soliciting bids, performing contract administration and inspection of the construction. Further, these costs represent the following general areas of construction and responsibility:

i. Durham County – Improvements to the Triangle WWTP and distribution piping from the Triangle WWTP to the Wake County line. The estimated cost for this work is $3,946,000.

27

ii. Town of Cary - Distribution piping from the county line to RTP South, and extension south to McCrimmon Parkway. The estimated cost for this work is $2,103,000.

iii. Wake County – Distribution piping within the Phase 1 area of RTP South. The estimated cost for this work is $2,559,000.

d. Total available Federal funds for this project are $2,877,000. Based upon already-reimbursed design and other pre-construction costs (Section 6.b) of $797,500, the projected remaining Federal funds available for construction are $2,079,500. The following table shows the remaining share of Federal funds for each party:

Construction-Related Costs

(% of total construction costs)

Federal Share

(based on % of

total costs)

Estimated Local Share

(Construction Cost

minus Federal Share)

WAKE

COUNTY $2,559,000 (29.7%) $618,197 $1,940,803

DURHAM

COUNTY $3,946,000 (45.8%) $953,265 $2,992,735

CARY $2,103,000 (24.4%) $508,038 $1,594,962

Total $8,608,000 2,079,500 $6,528,500

Below is a table that combines both the design and construction costs and shows the

total final federal funds for each party:

Approximate

Design And

Construction

Costs

Final Federal

Funds

Approximate %

of Federal

Share

Approximate

Local Share

WAKE

COUNTY $3,104,919 $918,453 31.9% $2,186,466

DURHAM

COUNTY $4,368,172 $1,185,460 41.2% $3,182,712

CARY $2,584,909 $773,087 26.9% $1,811,822

Total $10,058.000 $2,877,000 $7,181,000

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While WAKE

COUNTY, DURHAM COUNTY and CARY recognize that final construction costs may vary slightly by

the time contracts are completely closed out, all parties agree that no changes will be made to the

distribution amount of Federal grant funds.

In testimony whereof, WAKE COUNTY, CARY and DURHAM COUNTY have caused this SECOND

AMENDMENT to the AGREEMENT, to be executed by their respective Chairman, Manager or officers, as

applicable, their corporate seal to be affixed and attested to by their respective Clerks or secretaries, as

applicable, all by the authority of their respective Commissions or Councils, on the day and year first

written above.

The Wake County Board of Commissioners, meeting in regular session on ____________________ did

approve Amendment No. 2 to the Interlocal Agreement.

County of Wake

Chairman, Board of Commissioners

Witness:

Clerk

Approved by:

(as to form only) Wake County Attorney

Actions Related to Acquisition of Firefighting Apparatus Chairman Bryan introduced Ms. Nicole Kreiser, Capital and Debt Manager, Mr.

Demetric Potts, Business Officer for Fire and Emergency Management, and Mr. Lucius Jones, former Mayor of Wendell and Chairman of the Wake County Fire

Commission. Ms. Kreiser presented the request stating that an amendment to agenda item had been provided to the board, which reflected that the Town of Wendell instead of Swift Creek would receive the fire apparatus. She said that

the FY 2013-2019 CIP included $1,139,000 of debt to be authorized for apparatus. The debt will be by an installment financing agreement which

requires a public hearing be held by the Board of Commissioners. The public hearing advertised and is requested to be held on January 7, 2013. Staff will

issue a request for proposals related to the financings of the apparatus. In 2008, the County purchased six pumper trucks, three elliptical tankers and

three rescue trucks with installment financing agreements. The RFP will consider refunding the outstanding principle to take advantage of the current

market. In order to take advantage of the bid pricing that expires by the end of the year, staff recommends the purchase of the four tanks with uncommitted

funds in the fire tax capital funds which has a balance of $1.8 million. The

29

funds used for purchase of the tankers will be reimbursed with the proceeds of the financing once the financing closes.

Staff requests the Board approve the resolution calling for the public hearing in

connection with the installment financing agreement for the acquisition of the firefighting apparatus; authorize staff to issue a requires for proposals related

to the financing of new firefighting apparatus not to exceed $1,139,000, and the refinancing of the balances remaining on the March 2008 and December 2008 fire apparatus installment purchases; appropriate $1,139,000 of

uncommitted funds in the fire tax capital fund for fire apparatus; and authorize Wake County to purchase four tanker trucks with the intent that that

purchase would be reimbursed with proceeds from the apparatus financing.

The Apparatus Committee of the Wake County Fire Commission is charged with coordinating the purchase and replacement of major fire apparatus with Fire Tax District capital revenues.

Commissioner Coble thanked Lucius Jones, Chairman of the Fire Commission,

for the work that went into this request. He stated there was a lot of work done to get this request to this point. He said a number of fire departments have

worked to move trucks around and reprioritized to enable the purchase of these trucks.

Paul Coble motioned, seconded by Phil Matthews, to: 1. Approve the attached resolution calling for a public hearing in

connection with an installment financing agreement for the acquisition of firefighting apparatus;

2. Authorize staff to issue a Request for Proposals related to the financing of new firefighting apparatus not to exceed $1,139,000, and the refinancing of the balances remaining on the March 2008 and

December 2008 fire apparatus installment purchases; 3. Appropriate $1,139,000 of uncommitted funds in the fire tax capital

fund for fire apparatus; and

4. Authorize Wake County to purchase four tanker trucks with the

intent that that purchase would be reimbursed with proceeds from the apparatus financing.

The motion passed unanimously.

Chairman Bryan complimented Commissioners Coble and Matthews for their

being joint liaisons on the Fire Commission. He spoke of outdated equipment and stated that the tankers will be appreciated. Commissioner Ward said the Bay Leaf Fire Department staff is excited about the purchase of the tankers.

30

The Board of Commissioners for the County of Wake, North Carolina met in a regular

meeting in Room 700 on the 7th

floor of the Wake County Courthouse located at 335 South

Salisbury Street in Raleigh, North Carolina, the regular place of meeting, at 2:00 p.m. on

December 3, 2012.

Present: Chairman Joe Bryan, presiding, and Commissioners Paul Coble, Tony Gurley,

Phil Matthews, Caroline Sullivan, Betty Lou Ward and James West.

Absent: N/A

Also present: David Cooke, County Manager; Scott Warren, County Attorney; Susan J.

Banks, Clerk to the Board.

* * * * * *

Commissioner Bryan introduced the following resolution the title of which was read and

copies of which had been distributed to each Commissioner:

RESOLUTION CALLING A PUBLIC HEARING IN CONNECTION

WITH ONE OR MORE INSTALLMENT FINANCING AGREEMENTS

FOR THE ACQUISITION OF FIRE FIGHTING APPARATUS AND THE

REFINANCING OF PRIOR INSTALLMENT FINANCING

AGREEMENTS

WHEREAS, the County of Wake, North Carolina (the “County”) is considering entering

into an installment financing arrangement pursuant G.S. 160A-20 in a principal amount not to

exceed $1,139,000 to provide funds for the purchase of four tanker trucks expected to be used by

certain volunteer fire departments located in the County, including but not limited to, Wendell

Fire Department, Wake Forest Fire Department, Wake-New Hope Fire Department and Bay Leaf

Fire Department, each a non-profit fire department providing fire fighting services in the County;

31

WHEREAS, the County is also considering entering into one or more installment

financing agreements to refinance (a) an Installment Financing Agreement, dated as of March

24, 2008, among the County, Eastern Wake Fire Rescue Department, Hopkins Fire Department,

Stony Hill Fire Department, Wendell Homes Rural Fire Department, and RBC Centura Bank,

and (b) an Installment Financing Agreement, dated as of December 12, 2008, among the County,

Fairview Fire Department, Garner Volunteer Fire-Rescue, Rolesville Fire Department, Wake-

New Hope Fire Department, Bay Leaf Fire Department, Falls Fire Department and RBC Bank

(USA), each entered into to provide financing for the acquisition of firefighting apparatus;

WHEREAS, pursuant to the requirements of applicable federal income tax laws

regarding the treatment of interest on the payments made by the County with respect to the

installment financing, the County is required to hold a public hearing on such installment

financing arrangements;

NOW THEREFORE, BE IT RESOLVED THAT:

1. The Board hereby directs the staff of the County to seek proposals of potential

providers of such installment financings, and, based upon the responses to such request, to

negotiate the terms of an agreement with the providers of the installment financing for

consideration by the Board at the hereinafter mentioned January 7, 2013 meeting of the Board.

2. The Board hereby fixes the regularly scheduled meeting of the Board on January 7,

2013, at 2:00 p.m. in Room 700 on the 7th

floor of the Wake County Courthouse located at 335

South Salisbury Street in Raleigh, North Carolina, the regular place of meeting, as the time and

place for the public hearing on such installment financing arrangements and hereby directs the

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Clerk to the Board to publish notice of such public hearing once in The News and Observer not

later than the 14th

day before said date.

Section 3. The Board hereby finds, determines and declares the following:

(a) Section 1.150-2 of the Treasury Regulations (the “Regulations”) prescribes specific

procedures which are applicable to tax-exempt bonds or notes issued by or on behalf of the County for

which prior expenditures are to be reimbursed, including, without limitation, a requirement that prior

to, or within sixty (60) days of, payment of the expenditures to be reimbursed the County declare its

official intent to reimburse certain expenditures with proceeds of debt to be incurred by the County.

(b) The Board hereby declares its official intent pursuant to Section 1.150-2 of the Treasury

Regulations to reimburse itself from the proceeds of debt to be hereinafter incurred by the County for

certain expenditures relating to the acquisition of fire fighting apparatus described in this resolution

paid by the County on or after the date which is sixty (60) days prior to the date hereof.

(c) $1,139,000 is the maximum principal amount of debt reasonably expected to be incurred for

the purpose of paying the costs of the firefighting apparatus described in this resolution.

Upon motion of Commissioner Paul Coble, seconded by Commissioner Phil Matthews,

the foregoing resolution was adopted by the following vote:

Ayes: Joe Bryan, Paul Coble, Tony Gurley, Phil Matthews, Caroline Sullivan, Betty Lou

Ward and James West.

Noes: N/A

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* * * * * *

I, Susan J. 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 for said County at a regular meeting held on

December 3, 2012, as it relates in any way to the passage of a resolution relating to certain

installment financing arrangements described therein and the calling of a public hearing thereon

and that said proceedings are recorded in the minutes of said Board of Commissioners for said

County.

I DO HEREBY FURTHER CERTIFY that proper notice of such regular meeting was

given as required by North Carolina law.

WITNESS my hand and official seal of said County this 3rd day of December, 2012.

____________________________________

Clerk to the Board of Commissioners

[SEAL]

Approval of a Purchase Agreement with KCS-Wilmington Street LLC for a

New Career and Technical Education High School This item was postponed for discussion in closed session.

Wake County Public School System CIP 2006 Reallocation and

Appropriation Request (First Reading) Chairman Bryan introduced this item noting that this was the first reading and

no action required at this point. Mr. Joe Desormeaux, WCPSS, asked for appropriation of $18,652,790 for the design of a new high school (H-7) located

in Cary on Roberts Road and design of a new high school (H-8) on the site just

WCSR 7556540v1

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south of Garner south of White Oak on Clifford Road. The request includes funds for construction of the Garner 9th Grade Centers, and mobile additions

for the Cary High School and the Panther Creek High School. The second part of the request is reallocation of $80,146 from Smith Elementary to Hilburn

Academy for funding for science labs and modular setup.

Chairman Bryan asked for a better description of the request for the second reading.

Approve 2013 Meeting Schedule for Wake County Board of Commissioners Paul Coble motioned, seconded by Phil Matthews, to approve the 2013 Meeting Schedule for Wake County Board of Commissioners. The motion passed

unanimously.

2013 MEETING SCHEDULE

ADOPTED 120312

(Meetings begin at 2pm unless otherwise noted)

Date Day Place Description Notable

January 7 Monday Courthouse Room 700 Regular Meeting

January 14 Monday County Office Building, G-31 Work Session

January 21 Monday Offices Closed MLK Holiday

January 22 Tuesday Courthouse Room 700 Regular Meeting

February 4 Monday Courthouse Room 700 Regular Meeting

February 11 Monday County Office Building, G-31 Work Session

February 15 Friday TBD Board Retreat All Day

February 18 Monday Courthouse Room 700 Regular Meeting

March 2-6 Saturday-Wednesday

Washington, DC NACo Legislative Conference

March 11 Monday County Office Building, G-31 Work Session Revised due to NACo

March 18 Monday Courthouse Room 700 Regular Meeting

April 1 Monday Courthouse Room 700 Regular Meeting

April 8 Monday Public Safety Center, C170 Work Session

April 15 Monday Courthouse Room 700 Regular Meeting

May 6 Monday Courthouse Room 700 Regular Meeting

May 13 Monday Public Safety Center, C170 Work Session

May 20 Monday Courthouse Room 700 Regular Meeting Budget Presentation

June 3 (2pm) Monday Courthouse Room 700 Regular Meeting

June 3 (7pm) Monday Commons Building Public Hearing Budget

June 10 (9am) Monday Public Safety Center, C170 Work Session Budget

June 17 Monday Courthouse Room 700 Regular Meeting Budget

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Adoption

July 1 Monday BOC Auditorium Regular Meeting

July 8 Monday BOC Conf Rm 2nd floor, JC Work Session

July 15 Monday BOC Auditorium Regular Meeting

July 19-23 Friday-Tuesday Tarrant County - Fort Worth, TX NACo Annual Conf

August 5 Monday BOC Auditorium Regular Meeting

August 12 Monday BOC Conf Rm 2nd floor, JC Work Session

August 19 Monday BOC Auditorium Regular Meeting

August 22-24 Thursday- Sunday

Guilford County, NC NCACC Annual Conference

September 2 Monday Offices Closed Labor Day Holiday Labor Day

September 3 Tuesday BOC Auditorium Regular Meeting

September 9 Monday BOC Conf Rm, 2nd floor, JC Work Session

September 16 Monday BOC Auditorium Regular Meeting

October 7 Monday BOC Auditorium Regular Meeting

October 14 Monday BOC Conf Rm, 2nd Floor, JC Work Session

October 21 Monday BOC Auditorium Regular Meeting

November 4 Monday BOC Auditorium Regular Meeting

November 11 Monday Offices Closed Holiday Veterans Day

November 12 Tuesday BOC Conf Rm, 2nd floor, JC Work Session

November 18 Monday BOC Auditorium Regular Meeting

December 2 Monday BOC Auditorium Regular Meeting

Meetings after July 1st will be held in the new Wake County Justice Center.

Appointments

Wake County Human Services Board Commissioner West nominated Dr. Paul Scruggs for the dentist position on the

Human Services Board.

Raleigh-Durham Airport Authority Commissioner Coble nominated the reappointment of Terry Yeargan, with suspension of rules regarding term limits and nominated John Kane to the

vacant position.

United Arts Grants Panels Commissioner Sullivan nominated Ms. Caroline Lee to fill the District 4 position. Commissioner West nominated Lionel Randolph for the District 5 position.

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Yates Mill Park Advisory Board Commissioner Coble nominated Mr. Alton Howard for reappointment.

Durham Highway Fire Department Board of Trustees Firemen's Relief Fund

Commissioner Coble nominated Mr. Ernest Goodwin and Mr. David Zoltoski as recommended by the Durham Highway Fire Department Fire Chief.

Garner Fire Department Board of Trustees Firemen's Relief Fund Commissioner Matthews nominated Mr. William "Bill" Buffaloe and Mr. W.B.

Knight, Jr. for reappointment as recommended by the Garner Fire Department Fire Chief.

Rolesville Rural Fire Department Board of Trustees Firemen's Relief Fund Commissioner Gurley nominated Mr. Jerry Wayne Eddins for reappointment as

recommended by the Rolesville Rural Fire Department Fire Chief.

Stony Hill Rural Fire Department Board of Trustees Firemen's Relief Fund Commissioner Ward nominated Mr. Brian Dillard and Mr. Charles O. Brown, II for reappointment as recommended by the Stony Hill Rural Fire Department Fire Chief.

Western Wake Fire-Rescue Department, Inc. Board of Trustees Firemen's Relief Fund

Commissioner Coble nominated Mr. Edward V. Brantley and Mr. Stephen D. Mickler for reappointment as recommended by the Western Wake Fire-Rescue

Department Fire Chief.

Zebulon Board of Adjustment Commissioner Coble nominated Mr. David Hughes for appointment as a regular member on the Zebulon Board of Adjustment as recommended by the

Town of Zebulon.

Paul Coble motioned, seconded by Phil Matthews, to accept all of the

nominations by acclamation.

The motion passed unanimously.

Upcoming Vacancies Chairman Bryan read the list of upcoming vacancies as reported.

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Other Items Committee Reports - No reports

Other Business Chairman Bryan said he would have the Clerk send out the list of boards and

committees so the commissioners could respond to him about which boards they would like to serve on.

Closed Session Chairman Bryan asked the County Attorney to instruct the board on the

purpose and authority of the closed session. Mr. Warren stated the board was authorized to go into closed session to establish a position or instruct staff on a

position to be taken in negotiation of price and other material terms of a contract or proposed contract in acquisition of real property by purchase, option, exchange, or lease pursuant to G.S. 143-318.11(a)5.

Paul Coble motioned, seconded by Tony Gurley, to go into Closed Session to establish a position or instruct staff on a position to be taken in negotiation of

price and other material terms of a contract or proposed contract in acquisition of real property by purchase, option, exchange, or lease pursuant to G.S. 143-

318.11(a)5.

The motion passed unanimously.

Chairman Bryan called the meeting back to order following the closed session. All commissioners were present. He stated there was one item for action and

recognized Commissioner West to make a motion.

James West motioned, seconded by Betty Lou Ward, to:

1. Authorize the County Manager to execute a second amendment to the

Memorandum of Understanding with KSC-Wilmington Street, LLC for a Career and Technical Education High School valid through January 7, 2013. This amendment approves the purchase of the proposed CTE

High School property and other cost incurred by KSC, including professional services fees, commissions and a fee of up to 10%, with the

total of funds approved for this not to exceed $4,100,000.

2. Further, that the Board of Commissioners approves the execution of all necessary documents relevant to this transaction by the County Manager, subject to terms and conditions acceptable to the County

Attorney.

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3. The Board appropriates $4,100,000 from uncommitted funds in the Wake County Public School System (WCPSS) capital projects fund and

establishes a new project in the program-wide division of the WCPSS capital projects fund for the purchase of property located at 2200 South

Wilmington Street, in Raleigh for a proposed CTE High School.

4. The Board appropriates an additional $150,000 from uncommitted funds

in the WCPSS capital projects fund for professional services fees through January 7, 2013.

The motion passed unanimously.

Adjourn Tony Gurley motioned, seconded by Betty Lou Ward, to adjourn the meeting at 5:15 p.m. The motion passed unanimously.

Respectfully submitted,

Susan J. Banks, NCCCC Clerk to the Board

Wake County Board of Commissioners