TOWN OF COATS Board of Commissioners May 10,2012 7:00 p.m.  OFFICIAL MINUTES  LA ABSTRACT:  Ar regular meeting of the Board of Commissioners was held on May 10, 2012 in the  Board ofCommissioners' Meeting Room at Coats Town Hall.  II. ROLLCALL:  Mayor Walter Weeks, Mayor Pro-Tem Dr. Linda Robinson, Commissioner J. C. Allen, Commissioner Allen Mosby and Commissioner Don Pleasant were absent.  Commissioner Jerry Beasley were in attendance.  Attorney Al Bain was present. II. CALLTOORDER:  A quorum being present, Mayor Weeks called the meeting to order.  Mayor Weeks delivered the invocation and lead those in attendance in the Pledge of  Allegiance.  RESOLVED, to approve Agenda as presented. COMMISSIONERJERRY BEASLEY. COMMISSIONERS ALLEN AND BEASLEY.  MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  NOES (0)  IV.A APPROVAL OF CONSENT AGENDA:  RESOLVED, to approve Item II.A-Minutes, II.B-Attorney Bill, II.C- Financial  Statement.    MOTION BY MAYOR PRO-TEM: DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  COMMISSIONER JERRY BEASLEY. COMMISSIONERS ALLEN AND BEASLEY.  NOES (0)  V. MANAGER & COMMITTEE REPORTS:  Department Updates:  Police Department = ChiefJeremy Hall updated the Board with positive response to the church event at the ball field. Citations written: GHSP 37, Arrest made: Felonies 2, Misdemeanors 6, Cases Cleared: Felonies 2, Misdemeanors 6, Reported Incidents: Felonies 4, Misdemeanors 10, Other 2, Reported Wrecks: With injuries 0, Without injuries 2. Events that the department was involved with "Unity At the Church" and assisted with traffic control at Coats Elementary School on Election Day. Public Works - Gary Denton informed the Board oft the State Inspectors visit and everything was in good order. Working on clearing some intersection blind spots and security lights. Assisting recreation department with clearing for more parking space. Library - Librarian Rebecca DallaMura informed the Board of receipt of 13 new books and gift magazines from the Girl Scout's fund raiser. June 2, 2012 upcoming Bee  Keeping presentation at the Library.  Town Manager Kenny Cole updated the Board on the closing date with USDA around 1St ofJuly. Attorney is presently working on1 the title for the property. Mr. Cole estimated an August move for the Town Hall. Mr. Cole confirmed Ethics training on Wednesday, May 16, 2012 ini the conference room. Mr. Cole informed the Board ofthe Recreation  Committee meeting on the 3rd Wednesday of each month.  VI. OLD BUSINESS: A. 2012-2013 Fiscal Year Budget.  Town Manager Kenny Cole presented the Board with a proposed operating budget for Fiscal Year 2012-2013. Mr. Cole confirmed budget work session scheduled for May 14,  2012.  B. Consider Appointment to the Cemetery Committee.  Town Manager Kenny Cole presented the Board with 2 applicants to consider for the one RESOLVED, to appoint Sondra Smith to serve a one (1) year appointment on the MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY  (1)d opened vacancy. Cemetery Committee.  COMMISSIONER JERRY BEASLEY.  2    APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  COMMISSIONERS ALLEN AND BEASLEY.  NOES (0)  VII. NEW BUSINESS;  A. Consider Request to Close Honeycutt and. Jay Streets.  Town Manager Kenny Cole presented the Board with a request from Coats Baptist Church to close Honeycutt and Jay Streets for a Church Block Party on. June 9,2012 RESOLVED, to close Honeycutt and Jay Streets on June gth, 2012 from 10 am to 3 pm MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  from 10 am to 3 pm.  for Coats Baptist Church Block Party. COMMISSIONER JERRY BEASLEY. COMMISSIONERS ALLEN AND BEASLEY. B. Consider Surplus of Town Equipment.  NOES (0)  Town Manager Kenny Cole presented the Board with a list ofTown property that is no longer in use. Mr. Cole stated that this property would be listed on GovDeals.com. (reference #1) Town Manager Kenny Cole presented the Board with two (2) solicited bids to purchase and install the appropriate software and appurtenances. The received bids were Quality Air Tool in amount of$7,264.25 and Jones & Frank in the amount of $26,353.13. RESOLVED, to accept offer for installation of Fuel Software to Quality Air' Tool. MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  C.Consider Award of Fuel Dispensing Software Bid.  (reference #2)  COMMISSIONER JERRY BEASLEY.  COMMISSIONERS ALLEN AND BEASLEY.  NOES (0)  D. Consider approval ofa Citizen Advisory Committee Policy.  Town Manager Kenny Cole presented the Board with a Citizen Advisory Committee Policy for the Town. Mr. Cole shared that the reason for establishing aj policy is to provide our current and future committees a standard framework that clarifies the members' roles and responsibilities. The attached policy is recommended by the NC  Institute of Government. (reference #3)  RESOLVED, to accept Citizen Advisory Committee Policy.  3    MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  COMMISSIONER JERRY BEASLEY.  COMMISSIONERS ALLEN AND BEASLEY. E. Consider National Police Week. May 13-19.  NOES (0)  Town Manager requested that the Board consider National Police Week, May 13-19, RESOLVED, to accept National Police Week, May 13-19, 2012 and to observe May 15th MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  2012 and to observe May 15th as Peace Officer's Memorial Day.  as Peace Officer's Memorial Day.  COMMISSIONER JERRY BEASLEY.  COMMISSIONERS ALLEN AND BEASLEY.  NOES (0)  Mayor Weeks presented the Proclamation recognizing National Police Week, May 13-19, Mayor Weeks thanked the officers present for their service and acknowledge all officers  2012 (reference #4). for their dedication.  F.C Consider approval of Town News Letter.  Town Manager Kenny Cole requested that the Board review the draft edition oft the June Town News Letter. Mr. Cole: informed the Board oft the plans to mail or delivery the first edition and future quarters would be posted on the Town's web site. Mayor Pro-Tem questioned the cost to the Town to mail this to the residents. Mayor Weeks shared concerns about the expense for mailing however, newsletters at the Library and the Web  Site he felt was aj positive action for the Town.  G. Consider 2011-2012 Audit Contract with Petway, Mills & Pearson. Town Manager Kenny Cole presented the Board with the contract for the auditing services for the year ended June 30, 2012 (reference #5).  RESOLVED, to accept contract with Petway, Mills & Pearson for the auditing services MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR: PRO-TEM DR. LINDA ROBINSON,  ended June 30, 2012.  COMMISSIONER JERRY BEASLEY. COMMISSIONERS ALLEN AND BEASLEY.  NOES (0)  4    VIII. PUBLIC FORUM: Mayor Weeks opened Public Forum.  Karen Currin, 72 Hunters Point Angier, NC-Ms. Currin representing Friends oft the Library shared the importance of budgeting funds to operate the Coats Library and the  importance oft the Library to the community. Mayor Weeks closed Public Forum. IX.CLOSED SESSION:  RESOLVED, to conduct a closed session pursuant tol N.C.G. S. 143-318-11,0)0)- Consult with. Attorney, Town of Coats VS Pope and N.C.G.S. 143-318.11,0)0) MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  Approval of closed session minutes. COMMISSIONER JERRY BEASLEY. COMMISSIONERS ALLEN AND BEASLEY.  NOES (0)  Returned to open meeting at' 7:57 pm.  X. RECESS:  RESOLVED, to recess meeting on May 14, 2012: for CIP work session. MOTION BY MAYOR PRO-TEM DR. LINDA ROBINSON: SECOND BY APPROVED, AYES (3) MAYOR PRO-TEM DR. LINDA ROBINSON,  COMMISSIONER J.C.ALLEN.  COMMISSIONERS ALLEN AND BEASLEY.  NOES (0)  Mayor Weeks called meeting recessed at 7:58 pm.  Respectfully Submitted, Karen Kus  Whof Wooten, Town Clerk  Walter Weeks, Mayor KIL  5    Reference #.  payl  e  a    Reference # 3  4pags Quality Air Tool 3713 Conquest Dr Conquest 3713 Dr Garner NC, 27529 919-329-9650 QUOTE NUMBER 42925  QATA  QuoteTO TOWN OF COATS MCKINLEY ST COATS, NC11111 P:910-897-5184 F: NEED BY 03/06/2011 # QYUNIT TEMNUMBER 1.00EA M-626-8782afd6 2 1.00EA CVCMII-110V 3 1.00EA CVCM-TP 4 1.00EA M-626-18efad42 5 1.00EA M-626-3165bb88 6 1.00EA FREIGHT 7 1.00EA LABOR 8 2.00EA M-269-92ae4cab Tuesday, March 01,2011 NOTES: Kenny  Shipping Address TOWN OF COATS Attn: MCKINLEY: ST COATS, NC 11111 Shipping Acc#: Ship Method: Select DESGRIPTIONE  TERMS  DAYS  CUSTOMER PO EACH TOTAL 995.00 $995.00  Report software for customer PC's, imports comma separated text files,  and formats reports in Excel Macro PEDESTAL, 48" HIGH  CARDMASTER 1I,2H HOSE, 4N MISCELLANEOUS FELDS,110240VAC 2,465.00 $2,465.00  385.00 $385.00 1,895.00 $1,895.00 199.95 $199.95 35.00 $35.00 900.00 $900.00 195.00 $390.00 $7,264.95 $.00 SNotl Included $7,264.95  Internet/Cellular. modem, installed onto CardMaster Annual service contract for cellular service, prepayment required, service contract is with end user who owns the equipment Is ane estimate actual will be onf final invoice installation programming andt training  FREIGHT LABOR  Pulsar for meter  Subtotal: Freight: SalesT Tax: TOTAL:  Quote is good for 30 days. Thank youf for this opportunity Vicky! McPherson 919-770-7521  Quote Prepared by Vicky McPherson  ACCEPTANCE OF PROPOSAL  The above prices, specifications and work are satisfactory and are hereby accepted. Payment will be made as outline above. Quote is Valid for 30 days. Delivery quoted is our best estimate at the time of this proposal. Please contact your Sales Representative for firm shipping information. All goods are quoted FOB Shipping Point unless noted otherwise. QAT is not responsible for equipment damaged by the freight company. Please checkt the goods when delivered before signing for it. Federal, State and Local taxes may not bei included int this proposal and alla applicable taxes will be addedt tot thei final invoice. Int the evento of any litigation between the parties, Customer shall pay QAT for any attorney'sf feesi itir incursi in defending or prosecuting an action.  SIGNATURE    Jones &1 Frank Proposal #06120424T  ONES: FRANK PcimcEpraes Satk Norfolk, Richmond, & Fredericksburg, VA Boston, MA Charlotte & Rulcigh, NC Columbin & Greenville, SC CELL: (919)268-6382 Salisbury &1 Baltimore, MD FAX: Atlanta, GA Philadelphia, PA E-MAIL: ebchart@lpnsiankcon OPET  TO: Towno of Coats 237 North) McKinley Street Coats, NC27521 ATIN: Mr, Kenny Cole CELL: PHONE: 910-897-5183 E-MAIL: kcole@coatsnc.org;  FROM: Eric Lockhart  Key Accounts Manager 47200 Old Poole Road Raleigh, North Carolina 27610  PHONE:  FAX:  Jones &1 Frank offers] Layout, Installation, and Service on: alll Liquid] Handling Projects  Visit us at our Web Site www.ones-rank.com  REFERENCE: Dispenser Upgrade and FMS  REF.NO. 630 06120424T  F.O.B Jobs Site  DATE: 5/1/2012  WE AREI PLEASED' TO OFFER' THEI FOLLOWING PROPOSAL FOR YOUR CONSIDERATION:  SEENEXTTOLASTIAST: PAGEI FORI EXCLUSIONS!  OTY  PRICE 261.11 4,726.31 1,559.20 440.00 3.55 100.00 45.59 45.59 3.18 19.98 55.92 15.27 46.45  EXT. 3,602.22 3,602.22 522.22 4,726.31 1,559.20 440.00 177.50 100.00 45.59 45.59 6.36 39.96 111.84 30.54 92.90  DISPENSING EQUIPMENT  Gasboy Compact Astra Electronic Commercial Unit(s) asf follows:  Model:9823K F Single-Compact Mode1:9823K F Single-Compact Pulse Output Single Fuel Master 227838A WINDOWS: software Fuel Master Encoder for PROKEES 50 Fuel Master Prokees Shipping charges, per FMU OPW 11AI leadedi automatic nozzle OPW 11AP unleaded: automatic nozzle. OPW 8BL-04001 FillgardE Black OPW 241TPS-0241 TPS 3/4"s swivel OPW 66REC-1000: 3/4" Reconneclable! breakaway Ipco 3/4 x9" breakaway whip hose Irpco! 5/B") x1 12'0 curb hose SCOPE OF WORK BY JONES &F FRANK TO INCLUDE: Providet the Customer with ac detailed Construction: schedule.  ID:Unlead 3,602.22 ID:D Diesel 3,602.22  FUELI MANAGEMENT EQUIPMENT  FMU PLUSF Prokee or Smrtcard Master with: 2 hose controllers, pedestal, modem &s surge protection  DISPENSING ACCESSORIES  688-00010 688-00020 688-00860 688-01720 688-01649 310-15010 310-12012  Mobilizet tot thej job site. Work Sequence tob be as follows:  Install FMS Software andp perform training ond database set upa and! key encoding Remove existing consumer pumps andi replacev with Astra units Trenchf from buildingt top power pole/panel area toa areal between AST's forF FMS power & communication Install conduits and wiringf for FMS pedestal andt to dispensers for pulse Pour base padf forp pedestal and Astra units andi install both Terminate conduits, wiring, and start-ups system Train customer onp proper operation Install the Following Equipment: Fuel Management System Dispensers  Gasboy Astra  Trench from AST areat top power/panel: area and tot buildingi ing grass Fumish andl Install Conduit & Pull Wiringa as Follows: Approximately Dispenser(s) Reuse existingo conduits andy wiring-rework from consumer pumps Fuel Management Syslem New conduits andy wire Backiilla allT Trenches to Grade-seed: and straw Pour concrele padt tor mount equipment to thet following spec.: Owner top provide allf fuelf fort ther new! tank system(s) Clean ouro debrisf from thej jobs site. Jones & Frank Corp Confidential  150 Feet  4000 Thickness: 4"  PSI aire entrained Reinforced:  Lgth: 12'  Width: 2  Fibermesh  Page 1of3  a    Jones &1 Frank Proposal #06120424T  Calibrate Ihe dispenser/suction; pump meters Test: alle equipment supplied! by. Jones & Frank forp propero operation.  Instruct customer's personnel int thep proper operation oft thee equipment supplied by. Jones &F Frank. Jones & Frank requires thata ap pre-job conterence be! held prior to construction. Ailp parties involved in! this project arer requested toa attenda as a means ofe ensuring job quality: andt timelyo completion. Jones & Frank carries third party legall liability pollution insurance coverage for ourv work both during construction: anda aiter completion of our contract (upt tos $1,000,000.00). Excepta as otherwises specilied, alle equipment! supplied! by. Jones & Frank willb beg guaranteed tot thef furthest extent oft the manulacturersi writteny warranty. Alli installation work willb be guaranteed: againsto defectsi in warkmanship for oney year from the date ofs start-up, not! to exceedf filleen months fromt the date ofs substantial completion lfany underground obstructions ord conditions are encounteredi requiringo dewatering, rock removal, shoring, additional excavation time, removald of subs surface concrete, removal ofs subsurlace structures, relocation oft utilities, excessive cave-in, etc., therev willl bea additional chargest tot thec customer, Necessary Buildinga and Fire Department permits andi inspections will! bec obtained! by. Jones &F Frank Corporation anda arei includedi int thep proposal price. Necessary sitep plans, requirede engineering drawings, planning department approval, usep permits, engineering, variances orz zoning changes aret ther responsibilityo of the customer. Jones &F Frank canp provide these services ata ana additional charge. OUR INSTALLATION1 PRICE IS CONTINGENT ON THE FOLLOWING:  GENERAL CONDITIONS:  Existingo conduit is tob bec clear, usable andr meelingt the current electrical codes. Any repairs or replacement oft thee existing conduit will bep performed on a' "time and material" basis ato our normal rates andy will bea ana additional cost to thec customer. Existingo circuitp panel is to be adequately sized, and meelingt the current electrical codes. Any repairs 100 or replacement oft thee existing conduit willl be performed ona" time andr material" basis ato our normal rates and willl bea ana added cost tot the customer. Existingv wiringi ist tot be usable, and meeting thec currente electrical codes. Any repairs or replacement oft thee existingy wiringy willl bep performedo ona a' "time andr materials" basis ato our normal rates andy will be: ana additional charget to thec customer. Otherst tof furnished ana adequately sized electrical panel. Customer Providinga ap phonel linet tot the Fuel Management System Reader for System Communication  THE PRICES SHOWN BELOW DO NOT INCLUDE: Fuelf fort thes system. Bollards or physical protection Engineered: stamped drawings for permits Additional work nots stated above This price will remain firm for! thirty days from the, proposal date.  PLEASE NOTE:. Jones & Frank offers ongoing EPA & State compliance services as well as preventive maintenance programs. Please contact your. Jones & Frank representative fora additionall information.  THE TOTALI PRICEI JSA ASFOLLOWS:  EQUIPMENT- 6.75% Tax (Equipment) INSTALLATION- SERVICE TOTAL PRICE  $15,102.45 $1,132.68 $8,720.00 $1.380.00 $26,335.13 $526.70  IfP Payment & Performance Bonds arer required add:  STARDASDPAMINTTENS, 3. Payment' Terms (cnlendar days)  1. Prior to ordering equipment or oblaining permits, the Buyer'sc credit must! ber approved by. Jones & Frank Corp.  2.. Jones &1 Frank' "Terms & Conditions" page must bes signedb by the Buyer. 4.A minimum Deposito of: 25% is required for this project. 5. Credit Card payments greater than $3,000. willl havet thep processing feer added. 6. Thel Buyer's Account must! be" "current" prior tos start-up: andt training. 7.Invoice ofall Gilbarco Dispensers andl POS Upon! Receipt  a) Net(10) tend days- AIl Dispenser andl POSE equipment willl be invoiced when shipped from manufacturer.  b) Net (30) thirty days- Remainder of projecti invoices.  The: minimum depositr required for this projecti is:  $6.584  AlI Gilbarco equipment willl bei invoiced upon receipt ofi invoice (within lday). These invoices arec due- NET1 10 days. Gilbarcoi invoices willr nott ben aj part oft ther normal progress billingt unlesst they happent tol ber reccived thes same day.  Jones & Frank Corp- Confidential  Page: 2of3  3    Jones &1 Frank Proposal 06120424T  Incknowledge: and acceptt theset terms:  WEA APPRECIATE THEC OPPORTUNITY OFC OFFERING THIS PROPOSAL AND1 TRUST WE! MAYE BE FAVORED WITH YOURI MOSTV VALUED BUSINESS!  Eric Lockhart Eric Lockhart Key Accounts Manager 4720 Old Poole Road Raleigh, North Carolina 27610 PHONE: CELL: (919)268-6382 E-MAIL: ebcahan@pmes"fank.com JONES & FRANK ACCEPTANCE: Signature of Officer Title Date  ACCEPTANCE: proposal.  This proposal, when accepted! by thep purchaser, and final approval ofs Seller's Olficial Olficer, will. constitute al bonafide contract between us, subject to all terms and. conditions ont the reverse side, is expressly agreedt thatt there are no promises, agreements orL understandings, pral orwritten, nots specified int this  0-  Town of Coats  Company Name Signature Mr. Kenny Cole Name  Date  Title  Jones &F Frank Corp- Confidential  Page 3of3  4    Reference # 3  Iopagps  Town of Coats  Citizen Advisory Committee (CAC) Policy  1.0 SCOPE OF POLICY PURPOSE:  This document establishes policies and procedures whereby the Coats Town governing board will make appointments to the Town's public advisory boards, committees, commissions, and councils (hereinafter referred to as "citizen advisory committees"). It also provides operating procedures and clarifies The Town of Coats Board of Commissioners may appoint a citizen. advisory committee whose duty is to serve in an advisory capacity to Board of Commissioners concerning a variety of topics.  expectations of the Board of Commissioners for all advisory committees.  AUTHORITY:  The Town Board of Commissioners may establish rules and regulations in reference to managing the interest and business of the Town. For statutory boards, authority may include reference to applicable The Town Board of Commissioners has the responsibility to appoint citizens to serve as members of The Town department heads and staff are responsible for providing support to the Coats citizen advisory  General Statutes.  citizen advisory committees established byt the board.  committees. POLICY:  This policy establishes the parameters for appointments to state-mandated, regional, and/or Town  developed citizen advisory committees. PERIODIC REVIEW: DUTIES:  Periodic review of this policy will be conducted every two (2) years by the Town Board of Commissioners. The citizen advisory committee advises the Town Board in the areas requested by the Town Board. The citizen advisory committee is expected to achieve the goals as directed by the Board of Commissioners. The committee must submit recommendations to the Board of Commissioners. The citizen advisory committee, through its membership and subcommittees maintains continual contact with representative professional groups, stakeholder groups, and industry organizations. In this manner, the citizen advisory committee is kept apprised of current information related to all matters under the jurisdiction of theTown.  Page 1 of10    All actions of the committee shall be transmitted in writing, on a regular basis, to the Town Board.  2.0 Membership  For purposes of consistency, all appointments to citizen advisory committees will be made by the Town Board of Commissioners. In order to qualify for an appointment to the citizen advisory committee, a a. All nominees must complete a Town application to serve on advisory committees. Ifa deadline is advertised, submitted applications may be considered after the deadline until all vacancies are b. Allo committee members must meet the qualifications for the specific citizen advisory committee or Allo committee members must eighteen (18) years of age or older unless applying under a youth- d. All committee members shall be permanent residents of the Town or own real property or work or maintain a place of business in the Town and shall have a good reputation for integrity and community service and shall not have been convicted of or received a deferred sentence for a e. Nor nominee may currently be a party to nor al legal representative in litigation against the Town. Each nominee must be prepared and committed to participating in CAC work in a manner that Citizen advisory committee members will serve the people of Town. As such, their role includes their commitment for full participation in the citizen advisory committee's meetings and activities.  person must meet the following requirements:  filled.  the statutory requirements for an appointed position.  designated position.  felony crime.  enhances relationships between the Town and the community.  EXCEPTIONS: requirements. COMPOSITION:  The Town Board of Commissioners may waive requirements, with the exception of statutory  a. The Town Board of Commissioners shall appoint all voting members to the citizen advisory committee. The town will strive to have voting members that reflect the cultural and ethnic diversity b. No advisory committee shall be composed of less than five (5)voting members. However, the  oft the community.  committee may have additional non-voting ex- officio members.  Page 2 of10    SELECTION & APPOINTMENT:  a. All members of citizen advisory boards serve at the pleasure oft the Board of Commissioners. b. Appointments to citizen advisory boards will bei initiated with a public application process. The Town Board will determine if the applicants meet the required qualifications.  TERMS:  a. Each appointed citizen advisory committee member shall serve as required by Town Ordinance or until the appointed committee has fulfilled its functions as directed byt the Board of Commissioners. b. Citizen advisory committee members whose terms are due to expire may request or be asked to  acceptreappointment to the position.  ATTENDANCE:  Committee members are expected to attend meetings on a regular basis. Members should inform the chair of the committee as soon as possible when unable to attend an upcoming meeting, preferably at least forty eight (48) hours notice due to quorum considerations. The committee should maintain attendance records, including all regular and special called meetings. If a committee member has missed 25% of the advisory committee meetings during a calendar year, the committee Chair should make a recommendation to the Board of Commissioners on the continued service of the member. The member in question will provide an explanation in writing. Based on this information, the Board of Commissioners will  make a decision on the member's status.  RESIGNATIONS:  a. AI member of a citizen advisory board shall submit his or her resignation in writing to the Chair of the advisory board on which he or she serves, noting the effective date of the resignation. b. The Chair will forward a copy of the resignation to the director of the Town department and to the  Town Board of Commissioners.  The Board of Commissioners shall recognize the individual's service via al letter. d. Ana announcement of the open seat willl be made at thei time the resignation becomes effective.  VACANCIES:  Upon expiration of the term of service of members or should a vacancy otherwise occur, the Town Board of Commissioners shall have the responsibility of selecting and appointing new members to the  committee. REMOVAL:  a. Members of the citizen advisory committee are expected to exhibit the highest ethical and professional standards. The Town Board of Commissioners may remove a member upon a  majority vote oft the Town Board.  Page 3 of10    b. The Town Boardr may remove any member of the citizen advisory committee for neglect of duty,  nonparticipation or other just cause.  RELEASE FROM SERVICE:  a. When it is deemed necessary to release a member from his or her term of appointment on a When a citizen advisory committee has completed its function, the members shall be informed of the termination of the citizen advisory committee by letter or e-mail from the Town Board of  citizen advisory committee, the affected individual shall ber notified by letter.  Commissioners.  3.0 MEMBERS:  ROLES AND RESPONSIBILITIES  a. Members shall attend meetings of the citizen advisory committee, serve on subcommittees, and perform other functions as assigned by the citizen advisory committee chair. For quorum considerations, if a member is unable to attend citizen advisory committee meetings, the member shall contact the Chair as soon as possible, and at least forty-eight (48) hours before the b. Upon review of the above matters, the citizen advisory committee shall address recommendations  scheduled meeting.  and concerns, if any, tot the Town Board of Commissioners in writing.  GOVERNING BOARD:  a. The Town Board of Commissioners will consider the citizen advisory committee's b. Should any concerns remain unresolved after a response has been received from the committee, the Town Board of Commissioners may request that the matter be referred to the Town Manager. To enhance trust between the town departments and the community, members of the citizen Assist staff of the town department in achieving a greater understanding of the nature and causes of community issues, with an emphasis on improving relations between the  recommendations or concerns.  advisory committee will:  departments and the citizens.  Recommend methods to encourage and develop the CAC.  Work throughout the community to gain relevant information about CAC issues and communicate these with the Town Board of Commissioners and employees. Promote public awareness of contemporary issues the town departments must address.  Page 4 of10    CHAIR, VICE CHAIR, AND SECRETARY SELECTION AND RESPONSIBILITIES:  The Chair and any other officers of the citizen advisory committee will be chosen by the advisory committee. The Chair and the Vice Chair shall assume office at the first meeting in the calendar year. At the first citizen advisory committee meeting upon assuming office, the citizen advisory committee Chair shall present members with a copy of the citizen advisory committee's charge, scope, and membership  roster and a copy of this policy.  a. The Committee Chair has the following duties:  Calls all meetings. Serves as presiding officer. Designates subcommittees.  Assists staff in developing the committee meeting agenda.  Dissolves or appoints additional subcommittees, subject to committee approval. Works in consultation with the any assigned department head or staff liaison. Carries out citizen advisory committee assignments as required by the Town Board of  Appoints subcommittee chairs and members.  Commissioners.  Designates a Vice Chair for the committee.  Conducts citizen advisory committee meetings and presents a report of the proceedings and Reviews all committee minutes and proposed recommendations or assigns another member  resulting motions for approval advisory committee meetings.  of the committee to do sO.  b. The committee Vice Chair has thet following duty: The committee Secretary has the following duties:  Presides at citizen advisory committee meetings in the absence of the Chair. Takes (or oversees the taking of) minutes for all CAC meetings.  Submits minutes to the Chair (or designated person) to be distributed to CAC members in Assures that other records of the CAC are kept as directed by the Board of Commissioners.  advance of CAC meetings.  5.0 Organization ORIENTATION. AND TRAINING:  The citizen advisory committee members and department staff may need periodic training on state and Town goals and priorities as well as relevant statutes and policies, including open meetings, public a. Each member shall attend an orientation presented by staff department to familiarize the citizen advisory committee members with the operation of the Town, the department, and the rules and  records, conflicts of interest, and ethics.  Page 5 of10    operating procedures of the citizen advisory committee.  b. Citizen advisory committee members will be issued a manual and should become familiar with its  contents.  OPERATING EXPENSES:  a. Members oft the advisory committee are not employees of the Town.  b. Members serve in a voluntary capacity and shall receive nomonetary compensation nor any other financial or employee benefit from the Town unless approved by the Town Board of :, The Town will provide office supplies and assume responsibility for other expenses necessary for  Commissioners.  the operation of the committee.  CONFIDENTIALITY:  The Chair shall serve as the spokesperson for the citizen advisory committee.  Except for the Chair, no member of the citizen advisory committee shall make any written or oral statement of any confidential matter to any individual or body. A violation will result in immediate removal Members of the citizen advisory committee may receive information regarding personnel matters and other information of a sensitive or confidential nature. It shall be the duty and responsibility of each member to respect and maintain the confidentiality of client issues presented before the board. Neither the citizen advisory committee nor any individual member shall disseminate confidential information received during citizen advisory committee meetings. Citizen advisory committee members are required to sign confidentiality statements and will be removed from the citizen advisory committee upon violation  from the committee.  of the confidentiality agreement.  6.0 Meetings by the open meetings act.  Ina accordance with the North Carolina General Statutes, all meetings are open to the public as required Unless otherwise specified, public meetings will follow the standard rules of procedure defined by Town board. The members of the citizen advisory committee shall adopt other rules and procedures relating to the operation of the committee as needed. The citizen advisory committee members shall determine the  date, time, and place for each meeting.  a. Regular Citizen. Advisory Committee and Subcommittee Meetings:  The citizen advisory committee convenes upon call of the Chair and meets at least four times a year. The meetings may be held in specified or various locations within the Town. Subcommittee meeting dates shall be set by the subcommittee Chairs and shall be scheduled in conjunction  with citizen advisory committee meetings.  Page 6 of10    b. Special Meetings  Ar majority of citizen advisory committee members or the Chair may call special meetings at any time for any specific business. Special meetings, such as appeals, are convened at a location  selected by the Chair. Meetings Held via Teleconference  Teleconference meetings shall be held only in unusual circumstances and shall not replace regularly scheduled committee meetings. No regular meeting or appeal hearing shall be conducted via teleconference. Under no circumstances should a teleconference meeting exceed  one hour. d. Emergency Meetings  Ar majority of citizen advisory committee members or the Chair may call a meeting in emergency circumstances by providing telephone notice to media outlets at least one hour prior to the meeting. An emergency situation includes a disaster that severely impairs the public's health or safety. In the event telephone services are not working, notice that the meeting occurred must be  given as soon as possible after the meeting.  e. Meeting Notices  Notice of public citizen advisory committee meetings (including appeal hearings) and agendas shall be made available to all members and interested parties, and to any person who sO requests, at least two (2) calendar days in advance of the meeting by e-mail and by posting on  the Town of Coats website. Agendas  Committee Chairs (and/or CAC members) should submit agenda items to the designated The agenda must provide a description of each item of business to be transacted or discussed sO that interested members of the public will be capable of understanding the As a general rule, only those items appearing on the agenda will be discussed or voted on. However, if an item is raised by a member of the public, the citizen advisory committee may accept testimony and discuss the item sO long as no action is taken until With the Chair's agreement, the designated staff will develop and distribute to each member an agenda listing the matters to be considered at upcoming citizen advisory committee meetings. Also, soi far as practicable, copies of all written reports that are to be presented to the citizen advisory committee for members' review will be included in this  person at least seven (7) days prior to as scheduled meeting.  nature of each agenda item.  asubsequent meeting.  package at least five (5) days before the meeting.  Minutes  Minutes shall be taken of all citizen advisory committee meetings and approved by a vote of committee members. Once minutes are approved by the committee, they should be forwarded to h. All recommendations and reports of the citizen advisory committee, approved in the form of  the Town Clerk.  Page7of10    motions, shall be conveyed exclusively to the Town Board of Commissioners. The chair shall work with the Town Manager to schedule a time on an upcoming Board of Commissioners meeting for presentation of the recommendations or reports. Approved motions are forwarded to the Town Board of Commissioners for consideration, approval, or denial. Outcomes are reported back to the  citizen advisory committee. 7.0 Subcommittees  a. Subcommittees may be formed by the citizen advisory committee to research and make recommendation on special issues or areas in order to carry out the duties of the citizen advisory committee. All subcommittees shall be reviewed on an annual basis to determine continued need b. Except as approved by the Town Board of Commissioners, the majority of members of a subcommittee shall be Town of Coats Residents or either work or own al business in Town. Subcommittees are ad hoc and temporary in nature. Approved ad hoc subcommittees must have documented goals, deliverables, and a timeline, and the subcommittee will cease to meet when  and realignment with the priorities of the citizen advisory committee.  these are satisfied.  d. Subcommittee Formation and Operation:  Asubcommittee can bet formed with the approval of the Town Board.  Subcommittees shall operate as specified.  Am member of the subcommittee shall take responsibility for assigning a note taker and for reporting to the full citizen advisory committee the subcommittee's progress toward  its stated objectives, including dissenting view points. Subcommittees shall operate by a majority vote. Manager and any related Department Heads.  Subcommittees may request a technical representative, to be approved by the Town Subcommittees shall operate openly as defined bys state laws and local policies. Membership- - Membership on subcommittees shall be voluntary unless policy dictates  otherwise.  8.0 Quorum members. 9.0 Voting  A quorum for a meeting of citizen advisory committees shall consist of one more than half the voting  Decisions are reached by a simple majority vote unless otherwise required by law. All voting will be conducted in open meetings, except when in closed session as defined in the open meetings law. No  issues can be voted upon unless a quorum is present.  a. Only appointed members can vote at advisory committee meetings. Appointed members shall not b. Advisory committee members and others appointed by the Town Board of Commissioners may  delegate their vote to another member.  Page 8 of10    vote at citizen advisory committee meetings.  The Chair of the advisory committee may participate and vote on alli issues except in cases of d. Committee members holding non-voting seats will not vote in any circumstances.  conflicts of interest. e. Voting by proxy is not allowed.  10.0 Authorized Spokespersons  The chairs of advisory committees are the official representative of the committees during presentations oro comments at public events, including meetings or hearings of the Board of Commissioners. The chairs may designate another committee member to fill this role if needed or also ask the Town Manager, staff  liaison or al Department Head to do SO. 11.0 Conflict of Interest  During citizen advisory committee meetings, a member shall abstain from voting when he or she has a During review proceedings, members of the public or other committee members have the right to question the conflict ofi interest of any voting member. The citizen advisory committee Chair should consult with the  conflict ofi interest as defined by the Town Board's policy.  Town Manager on any potential conflict ofi interest. 12.0 Compensation and Travel Reimbursement  Voting members of the citizen advisory committee are not employees of the Town. Appointed advisory committee members shall receive no compensation or employee benefits for their services. The Town  does not provide travel expenses without advance approval of the Town Manager.  13.0 Limitation of Powers  Committees shall operate within the charge given by the Town Board of Commissioners and in  compliance with State Statues and' Town Ordinances.  Nothing contained in this statement or policy and procedures shall be construed to bei in conflict with any state law or Town Code of Ordinances. Should there be an appearance of conflict, the appropriate  state law or Town Ordinance shall prevail.  Neither the citizen advisory committee, nor any member thereof, shall:  Incur expense or obligate the Town in any manner.  Release any written or oral report of any board activity to any individual or body other than the Board of Commissioners or the Office of the Town Manager. The Town of Coats may issue a press release related to any reports from the advisory committees, in consultation  with the Committee chair after consultation with the Town Manager.  Page 9 of10    Independently investigate citizen complaints against a town department or an employee of Conduct any activity that might constitute or be construed as an official governmental review Conduct any activity that might constitute or be construed as establishment of the town or Violate the confidentiality of any information related to matters involving pending or  the department.  of departmental or employee actions.  department policy.  forthcoming civil or criminal litigation.  Matters pertaining to discipline of advisory committee members will be sole responsibility of the Town Board of Commissioners and not the citizen advisory committee. The activities of the citizen advisory committee shall, at all times, be conducted in accordance with all federal, state, and local laws.  Adopted the 10th day ofI May, 2012.  Walter Wéeks, Mayor  fa Wot Karen Wooten, Town Clerk  Page 10 of10    Reference# # 4  apags  OF  99 1905  PROCLAMATION ofthe TOWN OF COATS  PROCLAMATION BY THE TOWN OF COATS NATIONAL POLICE WEEK MAY13-19,2012  WHEREAS, Congress and the President of the United States have designated May 15 as Peace Officers' WHEREAS, the members of the Town of Coats Police Department play an essential role ins safeguarding WHEREAS, it isi important that all citizens know and understand the duties, responsibilities, hazards and sacrifices oft their law enforcement agency, and that members of our law enforcement agency recognize their duty to serve the people by safeguarding life and property, by protecting them against violence and disorder, and by protecting the innocent against deception and the weak against oppression; and WHEREAS, the men and women of the Town of Coats Police Department unceasingly provide a vital NOW, THEREFORE, we, the Town of Coats Board of Commissioners, call upon all citizens of the Town ofCoats and upon all patriotic, civic and educational organizations to observe the week of May 13 -19, 2012, as Police Week with appropriate ceremonies and observances in which all our people may. join in commemorating law enforcement officers, past and present, who, by their faithful and loyal devotion to their responsibilities, have rendered a dedicated service to their communities and, in sO doing, have established for themselves an enviable and enduring reputation for preserving the rights and security ofall We further call upon all citizens of the Town of Coats to observe Tuesday, May 15, as Peace Officers' Memorial Day in honor of those law enforcement officers, who, through their courageous deeds, have made the ultimate sacrifice ins service to their community or have become disabled in the performance of  Memorial Day, and the week in which May 15 falls as National Police Week; and  the rights and freedoms of Coats; and  public service;  citizens.  duty, and let us recognize and pay respect to the survivors of our fallen heroes.  This the 10" day of May 2012.    SEAL  NEA Walter Weeks, Mayor  -  ATTEST:  hawizoh  Karen F. Wooten Town Clerk    Reference # 5  of Coats OfTown dayo ofApril  10pags  Govermental Unit  4th On this  2012 PETWAY MILLS &F PEARSON,PA  Auditor  POI Box 1036, Zebulon, North Carolina 27597 the. Auditor, and Board of Commissioners to ast the Govemnmental Unit, agree as follows:  Mailing Address of Town of Coats  hereinafter referred to as hereinafter referred  Governing Board  Governmental Unit  The Auditor shall audit all statements and disclosures required by generally accepted accounting principles and additional required 2011 legal to the auditing procedures applied in the audit oft the basic financial statements and an opinion will be rendered in relation to (as applicable) the governmental activities, the business-type activities, the aggregate discretely presented component units, each major governmental and enterprise fund, and the aggregate remaining fundi information (non-major government and enterprise funds, the internal service fund type, and 2. Atar minimum, the. Auditor shall conduct his/her audit and render his/her report in accordance with generally accepted auditing standards. The Auditor shall perform the audit in accordance with Government. Auditing Standards ifr required by the State Single Audit] Implementation. Act, as codified in G.S. 159-34. If required by OMB Circular A-133 and the State Single Audit Implementation Act, the auditor shall perform a Single. Audit. This audit and all associated workpapers may be subject tor review by Federal and State agencies in: accordance with! Federal and State laws, including the staffs oft the Office of State Auditor (OSA) andt the LGC. Ifthe audit and/or workpapers are found in this review to 3. This contract contemplates an unqualified opinion being rendered. If financial statements are not prepared in accordance with generally accepted accounting principles (GAAP), or the statements fail to include all disclosures required by GAAP, please provide an explanation for This contract contemplates an unqualified opinion being rendered. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or restrictions in scope which 5. Ift this audit engagement is subject to the standards for audit as defined in Government, Auditing Standards, July 2007 revisions, issued byt the Comptroller General oft the United States, then by accepting this engagement, the. Auditor warrants that he has met the requirements for ap peer review and continuing education as specified in Government. Auditing Standards. The Auditor agrees to provide acopy of their most recent peer review report regardless of the date of the prior peer review report to the Governmental Unit and the Secretary oft the Local Government Commission prior to the execution of the audit contract. (See Item 22) Ift the audit firm received a peer review rating bther than pass, the auditor shall not contract with any Local Government Units without first contacting the Secretary of thel Local Government Commission for a If the audit engagement is not subject to Government Accounting Standards, the Auditor shall provide an explanation as to why in an 6. Iti is agreed that time is oft the essence in this contract. All audits are to be performed and the report of audit submitted to the SLGFD within date or the audit fee, an amended contract along with a written explanation of the delay must be submitted to the Secretary 7. Itis agreed that generally accepted auditing standards include a review oft the Govermental Unit's systems ofi internal control and accounting the as the systems relate to accountability. of funds, adherence to budget requirements, and adherence to law requirements. In addition, Auditor will make a written report, which may or may not be aj part of the written report of audit, to Governing findings, together with his recommendations fori improvement. That written report must include all matters defined as' significant the Secretary of and material weaknesses" in AU: 325 of the AICPA Professional. Standards. The Auditor shall filea copy of that report with 8. All local government and public authority contracts for audit or audit-related work require the approval of the Secretary of the Local Government Commission. This includes annual or special audits, agreed upon procedures related to Internal Control, bookkeeping or other assistance necessary to prepare the Unit's records for audit, financial statement preparation, any finance-related investigations, or any other audit-related work in the State ofNorth Carolina. Invoices for services rendered under these contracts shall not be paid by the Governmental Unit until the invoice has been approved by the Secretary of the Local Government Commission. (This also includes any progress billings.) [G.S. 159-34 and 115C-447] The process for invoice approval has changed. All invoices for Audit work must be submitted by email inl PDF format to the Secretary oft the Local Government Commission for approval. The invoices must be emailed to: simgrs@nstssitronn  statements and disclosures ofa all: funds and/or divisions oft the Governmental Unit for the period beginning July1  and ending June 30 the fiduciary fund types).  2012 The non-major combining, and individual fund statements and schedules shall be subjected  be substandard, the results oft the review may be forwarded toi the North Carolina State Board ofCPAI Examiners.  that departure from GAAP in an attachment.  would leadt to a qualification should bei fullye explained in an attachment tot this contract  peer review analysis that may result in: additional contractual requirements.  attachment.  four months of fiscal year end. Audit report is due on: October 31  2012  Ifit becomes necessary to amend of the this Local due  Government Commission for approval.  the  Board setting forth his deficiencies  thel Local Government Commission.    Bmant ouuyeur I111V JsUuIu iau LsIE aAV improvements and: similar services ofar non-auditing nature.  is not required  on contracts and invoices for systern  Auditor for them to present to the Local Government Unit for payment. Approval  In consideration of the satisfactory performance of the provisions of this agreement, the Governmental Unit shall pay to the incur Auditor, upon work approval byt the Secretary oft the Local Govemment Commission, the following fee," which includes any cost the Auditor may from or paper or peer reviews or any other quality assurance program required by third parties (Federal and State grantor and oversight agencies  other organizations) as required under the Federal and State Single Audit Acts: Year-end bookkeeping assistance - [For audits subject to permitted by revised. Independence. Standards]! $0 $10,000 Total $10,200 Preparation oft the annual financial statements_  Government  Standards, this is limited to bookkeeping services  Auditing  Audit  $200  Prior to submission of the completed audited financial report, applicable compliance reports and amended contract (ifr required) auditors may submit invoices for approval for services rendered, not to exceed 75% oft the total oft the: stated fees above. Ift the current contracted feei is not fixed in total, invoices for services rendered may be approved for up to 75% oft the prior year audit fee. The-75%.cap.f forinterim, invoice  UIS 10. The auditor working a local governmental  with  unit that has outstanding revenue bonds will include in the notes to the audited financial  a calculation demonstrating compliance with the revenue bond rate  statements, whether or not required by the revenue bond documents, bond covenant. Additionally, the auditor should be aware that any other financial statements unless otherwise: specified int the bond documents.  statements or additional reports required in the  compliance  the  audited  authorizing bond documents need to be submitted to the Local Government Commission. simultancously with local government's  the audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include but not be information: Management's Discussion and Analysis, (b) the financial statements and notes of the governmental  11. After completing limited to the following period.  (a)  (c) supplementary information after the close of the accounting  unit and all of its component units prepared in accordance with generally accepted Auditor's accounting on principles, the material presented. The Auditor shall  requested by the client or required for full disclosure under the law, and (d) the  opinion  furnish the required number of copies of the report of audit to the Governing Board as soon as practical  12. If the audit firm is required by the NC CPA Board or the Secretary of the Local Government Commission to have aj pre-issuance statement review that the of their audit work, there must be a statement added to the engagement letter specifying the pre-issuance review including the a Unit of Government will not be billed for the pre-issuance review. The pre-issuance review must be performed prior to submission completed to the" being submitted to the Local Government Commission. The pre-issuance report must accompany the audit report upon  Audit  Local Government Commission. 13. The Auditor shall electronically submit report  the  of audit tot thel Local Government Commission when (or prior to): submitting thei invoice for  Local Government Commission, becomes ar matterof public record for  services rendered. Ther report of audit, as filed witht the Secretary ofthel  revisions to these reports must be sent to the  inspection and review in the offices of the Secretary by any interested parties. Any subsequent determined byt the Local Government Commission that corrections needt to be made to  of Official Statements for debt they  Secretary oft the Local Government Commission. These audited financial statements are used in the preparation market disclosure requirements of the offerings (the auditors' opinion is noti included), by municipal bond rating services, to fulfill without secondary consent of the auditor. If it is Securities and Exchange Commission, and other lawful purposes of the goverment, the unit's subsequent financial statements should be provided  within three days ofr notification unless, another time framei is agreed tol by the! Local Government Commission.  contracts, audit reports and' Invoices are subject to change. Auditors should use  Thel Local Government Commission's process for submitting the submission process in effect at the time ofs submission.  In addition, if the North Carolina Office of the State Auditor designates certain programs to be audited as major Commission. programs, a tumaround 14. Should circumstances disclosed by the audit call for: a more detailed investigation by the Auditor than necessary under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need for such additional investigation and the additional compensation include required therefore. Upon approval by the Secretary oft thel Local Government Commission, this agreement may be varied or changed to 15. Ifan approved contract needs to be varied or changed for any reason, the change must be made in writing, signed and dated by all parties email and in pre-audited ift the change includes a change in audit fee. This document and a written explanation oft the change must be submitted by  document and a representation letter addressed tot the State. Auditor shall be submitted to the! Local Government  thei increased time and/or compensation as may be agreed upon byt the Governing Board and the Auditor.  the  Government Commission for  The portal address to upload your amended contract and approval. No change shall be effective unless approved by the  PDF format to the Secretary of Local  Letter of explanation documents is ssAdANE Secretary oft thel Local Government Commission, the Governing) Board, and the Auditor.  3    acopy of the engagement letter to the contract toi incorporate the engagement letter into the contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms of this contract will control. Engagement letter terms are deemed to be void unless the conflicting terms oft this contract are specifically deleted in Item 22 oft this contract. Engagement letters containing indemnification  clauses will not be approved by the Local Government Commission.  Special provisions should bel limited. Please list any special provisions in an: attachment. component unit whichi isa a local government and for which a separate audit report is issued.  18. A separate contract should not be madet for each division to be audited or report to bes submitted. A: separate contract must be executed for each 19. The contract must be executed, pre-audited, physically signed by all parties and submitted in PDF format including unit and auditor signatures to the Secretary of the Local Government Commission. The current portal address to upload your contractual documents is http/nctreasurerslefaleapile.net Electronic signatures are not accepted at this time. Included with this contract are instructions: to submit contracts and: invoices for approval as of March 5,2012. These instructions are subject to change, Please check the NC 20. The contract is not valid until it is approved by the Local Government Commission. The staff of the Local Government Commission shall notify the unit and auditor of contract approval by email. The audit should not be started before the contract is approved. 21. There are no other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into ina accordance with the procedure set out herein and approved by the Secretary oft the Local Government Commission. 22. All oft the above paragraphs are understood and shall apply to this agreement, except the following numbered paragraphs shall be deleted: (See 23. All communications regarding Audit contract requests for modification or official approvals will be sent to thé email  Treasurer's web: site at www.netreasuren.com: fort the most rècent instructions.  Item 16.)  Addresses provided in the following areas. Audit Firm Signature: Firm! PETWAY MILLS&F PEARSON,PA Phyllis M. Pearson, CPA By (Please type or print name) of authorized audit firm l ignatère Email Address of Audit! Firm: pearson@pmpepa.com April 4, 2012 Date Unit Signatures: By  Unit Signatures (continued):  By_wlaller Neeks NIAYOE (ChairofAudit Committec- please type orprintr name) II  of Audit Committee 5-10-183  mlau,CPA  (Signature Date_ "N/A.")  Chairperson)  representative)  (f unit has no audit committee, this section should be marked Thisi instrument has been preauditedi in thei manner required by" Thel Local Govemment Budget and Fiscal Control Acto or by the! School Budget and Fiscal Control Act. Additionally, thei following datei ist the date this audit contract was approved by theg goveming body. Karn_E.Wooker Goyernmental Unit Finance Officer (Pleaset type or print name) Kaea 7.2V67  (Please type or print name: and title)  (Signature)  (Signature. of Mayor/Chairperson' ofe goyerning board)  Email Address of Finance Officer kwoolen Date_  Date_  Btabway 5-10-13  DateGoverning Bodv Approved: Audit Contract- GS.159-34(a)  (Preaudit Certificate must be dated.)  3    PM&P PETWAY MILLS & CERTIFIED! PUBLICACCOUNTAMIS C.Briggs Petway,Jr. Roger G. Mills Phyllis M. Pearson Zebulon Ofice P.O. Box 1036 1014N.A Arendell Ave. Zebulon, NC27597 919.269.7405 919.269.8728 Fax Raleigh Office 5116 Bur Oak Cr. Raleigh,NC27612 919.781.1047 919.781.1052 Fax  April 4,2012 Town of Coats POI Box 675  PEARSON,PA Coats, North Carolina 27521  We are pleased to confirm our understanding of the services we are to provide the Town of Coats for the year ended June 30, 2012. We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information (if applicable), which collectively comprise the' Town of Coats' basic financial statements as of and for the year ended June 30, 2012. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to accompany the Town's basic financial statements. As part of our engagement, we will apply certain limited procedures to the Town's RSI. These limited procedures will consist principally of inquires ofmanagement regarding the methods of measurement and presentation, which management is responsible for affirming to us in its representation letter, Unless we encounter problems with the presentation of the RSI or with procedures relating to it, we will disclaim an opinion on it. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: Management's Discussion and Analysis. Supplementary information other than RSI, such as combining and individual fund financial statements, may also accompany the Town's basic financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and will provide an opinion on it in relation to the basic financial statements: Schedule of Federal and State  Expenditures and budgetary comparison schedules.  Audit Objectives  The objective of our auditi is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. The objective also  includes reporting on-  Internal control related to the financial statements and compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants, noncompliance with which could have a material effect on the financial statements in accordance with Government Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and The Audit_Mamual for Governmental The reports on internal control and compliance will each include a statement that thei report is intended for the information and use of the Town Council, management, specific legislative or regulatory bodies, federal and state awarding agencies, and if applicable, pass-through entities and is not intended to be Our audit will be conducted in accordance with U.S. generally accepted auditing standards; the standards for financial audits contained in Government. Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; the provisions of OMB  Memberships: North Carolina Association of Certified Public Accountants American Institute of Certified. Public Accountants Medical Group Management Association  Auditing Standards.  Auditors in North Carolina. (Ifapplicable)  and should not be used by: anyone other than these specified parties.  4    Circular A-133; and The Audit Manual for Governmental. Auditors in North Carolina, and willi include tests of accounting records, a determination of major program(s) in accordance with Circular A-133, and other procedures we consider necessary to enable us to express such an opinions and to render the required reports. If our opinions on the financial statements or the Single Audit compliance opinions are other than unqualified, we will: fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we: may decline to  express opinions or toi issue a report as ar result oft this engagement.  Management Responsibilities  Management is responsible for establishing and maintaining effective internal controls, including ongoing monitoring activities; for the selection and application of accounting principles; for the fair presentation in the financial statements of the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Town and the respective changes in financial position and, where applicable, cash flows in conformity with US generally accepted accounting principles; and for federal and state award program compliance with applicable laws, regulations and the provisions of contracts, agreements, and grants. Management is responsible fort thel basic financial statements and all accompanying information as well You are responsible for management decisions and functions. As part of the audit, we will prepare a draft of your financial statements, schedule of federal and state awards, and related notes. In accordance with Government Auditing Standards, you will be required to review and approve those financial statements prior to their issuance and have a responsibility to be in a position in fact and appearance to make an informed judgment on those financial statements. Further, you are required to designate a qualified management-level individual to be responsible and accountable for overseeing our Management is responsible for making all financial records and related information available to us, including identifying any significant vendor relationships in which the vendor has the responsibility for program compliance and for the accuracy and completeness of that information Management's responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, tot the financial statements taken as a whole. You are: responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud, or illegal acts affecting the government involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us ofy your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements and grants. Additionally, as required by OMB Circular A-133, it is management's responsibility to follow up and take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. The summary schedule of prior audit findings should be available for our review on June Management is responsible for establishment and maintenance of a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous audits or other engagements or studies related to the objectives discussed in the Audit Objectives section oft this letter. This responsibility includes relaying to us corrective action plans taken to address  as all representations contained therein.  services.  30,2012.  5    significant findings and recommendations resulting from those audits or other engagements or studies. You are also responsible for providing management's views on our current findings, conclusions and recommendations, as well as your planned corrective actions, and thet timing and format related thereto. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to bet tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards dor not expect auditors toj provide reasonable assurance of detecting abuse. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on1 the financial statements or major programs. However, we will inform you ofany material errors and any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform you of any violations of laws or governmental regulations that come to our attention, Audit. Our responsibility clearly as auditors is limited to the period covered by our audit and does not Single extend to matters that might arise during any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of creditors, and financial institutions. We will request written representations from your attorneys as part oft the engagement, and they may bill you: for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related  Audit Procedures--General  unless  inconsequential. We will include such matters in the reports required for a  liabilities  with selected individuals,  receivables and certain other assets and  by correspondence  matters.  Audit Procedures--Internal Controls  Our audit will include obtaining an understanding of the Town and its environment, including internal control, sufficient to assess the risks of material misstatement oft the financial statements and to design Tests of controls may be performed to testt the effectiveness of certain controls that we considerrelevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting fromi illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Tests of controls relative to the financial statements are required only if control risk is assessed below the maximum level. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to As required by OMB Circular A-133, we will perform tests of controls over compliance to evaluate the effectiveness oft the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal and state award program. However, our tests willl be less in scope than would be necessary to render an opinion on those  the nature, timing, and extent of further audit procedures.  Government. Auditing Standards.  6    controls and, accordingly, no opinion will be expressed in our report oni internal control issued pursuant An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will communicate to management and those charged with govemance, internal control related matters that are required to be communicated under professional standards,  to OMB Circular. A-133.  Government. Auditing Standards and OMB Circular. A-133.  Audit Procdures-Complance  As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests ofTown of Coats' compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government. Auditing Standards. OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Circular A-133 Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of Town of Coats' major programs. Thej purpose oft those procedures will be to express an opinion on Town of Coats' compliance with requirements applicable to major programs in our report on  compliance issued pursuant to OMB Circular A-133. Audit Administration, Fees, and Other  We may from time to time, and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security ofy your information. Accordingly, we: maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with thet third-party service provider. Furthermore, we will remain responsible for the work We understand that your employees will prepare all cash, accounts receivable, or other confirmations At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form that summarizes our audit findings, if applicable. We will provide 2 copies of our reports to thel Local Government Commission and 15 copies of report to the board of directors of the Town school; however, it is management's responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal and state awards, summary schedule of prior audit findings, auditors' reports, and a corrective action plan) along with the Data Collection Form to the designated federal clearinghouse, if necessary, and, ifappropriate, to pass-through entities. The Data Collection Form and the reporting package must be submitted within the earlier of30 days after receipt of the auditors' reports or nine months after the end oft the audit period, unless a! longer period is agreed to in advance by the cognizant or oversight agency for audits. At the conclusion ofthe engagement, we  provided by any such third-party service providers.  we1 request and will locate any invoices selected by us fori testing.    Denning & Sessoms,P.A.  Certified! Public Accountants APROFESSIONALASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS  System Review Report  January 13,2012 To the Shareholders of Petway, Mills & Pearson, P.A.  and the Peer Review Committee of the NCACPA  We have reviewed the system of quality control for the accounting and auditing practice of Petway, Mills & Pearson, P.A. (the firm) in effect for the year ended September 30, 2011. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are As required by the standards, engagements selected for review included engagements performed under Government. Auditing Standards and audits of employee benefit plans. In our opinion, the system of quality control for the accounting and auditing practice of Petway, Mills & Pearson, P.A. in effect for the year ended September 30, 2011, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Petway, Mills & Pearson, P.A. has received a peer review rating of pass.  described in the standards at ACPAgTEpummary  Dennerp 4 bnm AA: Denning & Sessoms, P.A.  1905 Sunset Avenue . Fox Lake Building (HWY 24W) + Clinton, North Carolina 28328  IC