AGENDA Sawmills Town Hall Tuesday, November 19, 2019  Regular Meeting of the Sawmills Town Council  6:00 pm  1. Call To Order 2. Invocation 3. Pledge of Allegiance 4. Adopt Agenda 5. Approve Meeting Minutes 6. Public Comment 7. Recognitions: A. Recycle Rewards Stormwater Ordinance: A. Open Public Hearing B. Staff CommenyRecommenditons C. Public Comment D. Close Public Hearing E. Council Action 9. Financial Matters: A. AMI Loan Resolution B. Employee Longevity Pay  Mayor Johnnie Greene NCI Representative Destin Hall Mayor. Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor. Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor. Johnnie Greene Mayor. Johnnie Greene Mayor. Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Grenne Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene  A. October 15, 2019 Regular Meeting Minutes B. October 15, 2019 Closed Session Meeting Minutes  8. Public Hearing on Town of Sawmills Code of Ordinances, Phase II  C. Caldwell County Veterans Honor Guard Donation Request D. Caldwell County 4-H Saddle Club Donation Request E. Granite Falls Booster Club Donation Request F. South Caldwell Boosters Donation Request G. Approve Auditors Contract for FY: 2018-2019  10. Public Comment 11. Updates:  A. Code Enforcement Report B. Council Comment  12. Closed Session: NC6S4381Q0  13. Adjourn    October 15, 2019  TUESDAY, OCTOBER 15, 2019  TOWN OF SAWMILLS REGULAR COUNCIL MEETING  6:00 PM  COUNCIL PRESENT Mayor Johnnie Greene Keith Warren Clay Wilson Rebecca Johnson  STAFF PRESENT Terry Taylor Julie A Good  CALL TO ORDER: Mayor Johnnie Greene called the meeting to order at approximately  6:06pm.  INVOCATION: Pastor Ashley Crouse gave the invocation.  PLEDGE OF. ALLEGIANCE: Ashton Woodruff, Addison Rogers, Bryant Kellerand Sarah  Franklin of Sawmills Elementary School led the Pledge of Allegiance.  ADOPT AGENDA: Mayor Johnnie Greene asked for a motion to adopt the October 15, Joe Norman made a motion, and Keith Warren seconded, to adopt the October 15, 2019  2019 Agenda.  Agenda. All were in favor.  APPROVE SEPTEMBER 17,2019 REGULAR MEETING MINUTES: Mayor Johnnie Greene asked for a motion to approve the September 17,2019 regular meeting minutes. Clay Wilson made a motion, and Joe Norman seconded, to approve the September 17,2019  regular meeting minutes. All were in favor.  APPROVE SEPTEMBER 17, 2019 CLOSED SESSION MEETING MINUTES: Mayor Johnnie Greene asked for a motion to approve the September 17,2019 closed session meeting Clay Wilson made a motion, and Rebecca Johnson seconded, to approve the September 17,  minutes.  2019 closed session meeting minutes. All were in favor.  APPROVE OCTOBER 1, 2019 SPECIAL SESSION MEETING MINUTES: Mayor Johnnie Greene asked for a motion to approve the October 1, 2019 special session meeting    Page 2  minutes.  Clay Wilson made a motion, and Joe Norman seconded, to approve the October 1, 2019  special session meeting minutes. All were in favor.  APPROVE OCTOBER 1, 2019 SPECIAL CLOSED SESSION MEETING MINUTES: Mayor Johnnie Greene asked for a motion to approve the October 1, 2019 special closed Clay Wilson made a motion, and Joe Norman seconded, to approve the October 1, 2019  session meeting minutes.  special closed session meeting minutes. All were in favor.  PUBLIC COMMENT: Mayor Johnnie Greene asked if anyone had any questions or  comments at this time. No one wished to speak RECOGNITIONS:  RECYCLE REWARDS WINNER: Mayor Johnnie Greene announced Ms. Rebecca Byrd as the October Recycle Rewards winner. A credit of thirty-two dollars ($32.00) will be added  tol her sanitation bill. No Council action was required.  PUBLICHEARING ON TEXT AMENDMENT FOR ZONING ORDINANCE: OPEN PUBLIC HEARING: Mayor Johnnie Greene asked for a motion to open the public Clay Wilson made a motion, and Joe Norman seconded, to open the public hearing. All were  hearing on text amendment for zoning ordinance.  in favor.  STAFF COMMENTS/RECOMMENDATIONS: Town Planner Hunter Nestor stated that currently the Town of Sawmills has separate Board of Adjustments and Planning Boards. The Planning Board should consist of five (5) members; three (3) in town members and two (2) ETJ members. The Board of Adjustments consist of five (5) members and Council may appoint two (2) alternate members. However, staff is having problems finding people who would likei to serve on either board. Currently, wel have only four (4)r members on the Planning Staffwould like to combine the Planning Board and the Board of Adjustments. The proposed draft states that the Board will consist of six (6) members, four (4) in town and two (2)ETJ to remain proportional, and have two (2) alternates, one (1) in town and (1) ETJ. This will help with trying to find people to serve on the Board, as well as giving the new combined  Board and four (4) members on the Board of Adjustments.    Page 3  Board more duties for more frequent meetings. By combining both boards, staff recommends tol having six (6)r regular members instead oft the current five (5) for each board. The proposed language allows for two (2) alternates to be appointed in case a regular member cannot attend ai meeting. There will be one (1) alternate from in town and one (1) from ETJ.  PUBLIC COMMENT: Mayor Johnnie Greene asked ifanyone wished to speak on the text  amendment for zoning ordinance. No one wished to speak.  CLOSE: PUBLIC HEARING: Mayor Johnnie Greene asked for a motion to close the public Clay Wilson made ai motion, and Joe Norman seconded, to close the public hearing. All were  hearing. in favor.  COUNCIL ACTION: Joe Norman made a motion, and Rebecca Johnson seconded, to approve the text amendment for zoning ordinance because the proposed amendment is  consistent with the Comprehensive Plan. All were in favor.  Clay Wilson made a motion, and Joe Norman seconded, to reappoint all members as follows:  New Term Expiration  Term Length Oct-20 1year Oct-20 1 year Oct-21 2year Oct-21 2y year Oct-21 2year Oct-22 3Year Oct-22 3Year Oct-22 3Year  Name Steve Duncan David Powell Adam Wilson (ETJ) Jack Keller Walter Moore(ETJ Alternate) Dino DiBernardi (ETJ) Kelley Price Reed Lingerfelt (Alternate) All were in favor. DISCUSSION:  APPROVE EMPLOYMENT CONTRACT OF TOWN MANAGER: Mayor Johnnie Greene stated that Council had a copy oft the contract for a New Town Manger for the Town of Sawmills. The effective hire date for the new Town Manger will be November 21,2 2019,  or as soon thereafter as he is able to report for duty.  Keith Warren made a motion, and Rebecca Johnson seconded, to approve the Employment  Contract of the Town Manger. All were in favor.    Page 4  CONSIDERATION OF APPOINTMENT OF TOWN MANAGER: Mayor Johnnie Greene stated that upon approval of the Town Manager's contract, that Council will need to  vote to approve the new Town Manager.  Joe Norman made ai motion, and Clay Wilson seconded, and to appoint David C. Winebarger  as' Town Manager for the Town of Sawmills. All were in favor.  CALL FOR PUBLIC HEARING FOR SAWMILLS STORMWATER ORDINANCE: Mayor Johnnie Greene stated that in order to enforce the Stormwater NPDES permit, the Town is required to adopt a stormwater and illicit discharge ordinance. The purpose of the code is to. comply with North Carolina General Statute requirements. The adoption of the  proposed changes will enhance the overall protection of stormwater.  Rebecca Johnson made a motion, and Joe Norman seconded, to call a public hearing for the Town of Sawmills Stormwater Ordinance at the regularly scheduled November 19, 2019  Town of Sawmills Council meeting. All were in favor.  RUSSELL DRIVE/MISSION ROAD WATERLINE REPLACEMENT: Todd Poteet, with West Consultants, gave an update on the Russell Drive and Mission Road waterline  replacement projects.  No Council action was required. FINANCIAL MATTERS:  PRESENTATION OF BIDS FOR AMI: The bid opening for the Advanced Metering Infrastructure (AMI) occurred on Friday, September 13,2019. Three (3) bids were received  from:  1- enlietputskmar, 2- Water Works/Mueller Systems; and 3- Ferguson Waterworks/Sensus  The bid packets were reviewed and certified in accordance with North Carolina General Statutes, by MeterSys. On September 24, 2019, staff met with Andy Honeycutt and Lisa Nguyen, from MeterSys, to review the bid information. The following bids have been  proposed:  Vendor: 1- Water Works/Mueller 2- Ferguson Waterworks/Sensus  Construction: $1,135,150.00 $1,864,968,00  Operational (Yr. 1) $13,712.00 $19,647.00    Page 5  On September 30, 2019, staff met with the Public Works Committee to review the remaining two (2) bids. The lowest bidi received was from Water Works/Mueller Systems for at total bid of one million one hundred thirty-five thousand one hundred fifty dollars ($1,135,150.00). MeterSys does believe that Water Works/Mueller Systems is qualified to perform the project. Joe Norman made a motion, and Clay Wilson seconded to award the AMI project to Water Works/Mueller Systems for a total amount of one million one hundred thirty-five thousand  one hundred fifty dollars ($1,135,150.00). All were in favor.  APPROVE CONTRACT FOR AMI: Andy Honeycutt, with MeterSys, stated that MeterSys has received a contract from Water Works/Mueller Systems that they are reviewing. Mr. Honeycutt stated that as soon as MeterSys had the final draft of the contract that they would forward a copy to Town Attorney Terry Taylor for her review and approval.  Rebecca Johnson made a motion, and Keith Warren seconded, that after review and approval by Town Attorney Terry Taylor, of the contract for the purchase and installment of the AMI meter system from Water Works/Mueller Systems, Mayor Johnnie Greene is authorized to  sign the contract. All were in favor.  APPROVE CAPITAL PROJECT BUDGET ORDINANCE WATER METER REPLACEMENT PROJECT: Mayor Johnnie Greene stated that during the August 20, 2019 regularly scheduled council meeting, the Council voted to finance the AMI project as  follows:  Sixty percent (60%) out of the General Fund; Forty percent (40%) out of the Utility Fund; and Af four hundred thousand dollars ($400,000.00) installment loan.  A Capital Project Budget Ordinance Water Replacement Project will need to be adopted to Joe Norman made a motion, and Keith Warren seconded, to approve the Capital Project  move forward with the AMI project.  Budget Ordinance Water Meter Replacement Project. All were in favor.  REFUSE TRUCKINFPORMATION: Mayor Johnnie Greene stated that during the August 20, 2019, regularly scheduled council meeting, the Council voted to have staff contact interested parties in regards to the sale oft two (2) of the three (3)refuse trucks that the Town currently owns: a 2009 LE6 600 Mack-Low Entry Tandem, Serial Number 7E7302994 and a  2018 LR 613 Mack-Low Entry Tandem, Serial Number 7E7306229. Information was received by September 13, 2019, at 10:00 am, as follows:  Carolina Environmental Systems Kernersville, NC City ofLenoir Lenoir, NC  $217,756.00 $258,000.00    Page 6  No Council action was required.  RESOLUTION APPROVING CONVEYANCE OF PROPERTYTO. ANOTHERUNIT OF GOVERNMENT IN NORTH CAROLINA PURSUANT TO NORTH CAROLINA GENERAL STATUTE S 160A-274: Mayor Johnnie Greene stated that in order to sale the two (2) refuse trucks to the City of Lenoir, a Resolution Approving Conveyance of Property to Another Unit of Government in North Carolina pursuant to North Carolina General Statute  $160A-274, is needed to complete the sale.  Rebecca Johnson made a motion, and Joe Norman seconded, to adopt the Resolution Approving Conveyance of Property to Another Unit of Government in North Carolina Pursuant to North Carolina General Statute $ 160A-274. All were in favor.  PUBLIC COMMENT: No one wished to speak.  OCTOBER CODE ENFORCEMENT REPORT: There are seven (7) code enforcement  cases open:  Chaney Carter, owner of 4361 Sawmills School Rd. Overgrown vegetation. Town Planner Hunter Nestor stated that a letter was sent on July 19, 2018, with a deadline of August 3, 2018. Town Planner Hunter Nestor stated that the nuisance was abated by the Town on August 10, 2018. Town Planner Hunter Nestor stated that a lien will be placed on the property for the cost of the mowing. Town Planner Hunter Nestor stated that a hearing was held on September 6, 2018, and Ms. Carter did not show SO Town will proceed to demolish house. Town Planner Hunter Nestor stated that an asbestos test was performed on the property on July 25, 2019, and the test did find asbestos. Town Planner Hunter Nestor stated that DARI was contacted on August 8, 2019, to give the Town an estimate for abatement, the cost of abatement is seventeen thousand nine hundred dollars ($17,900.00). Town Planner Hunter Nestor stated that staff can proceed to demolish and abate the property. Town Planner Hunter Nestor stated that staff entered into an agreement with DARI and the asbestos should be Carolyn Bray/Robyn Brittian, 2570 Baker Circle. Abandoned mobile home. Town Planner Hunter Nestor states that he is working with Town Attorney Terry Taylor to abate. Town Planner Hunter Nestor stated that the Town can treat this as a junk and debris case and not minimum housing, and by doing SO, can proceed after thirty (30) days with abatement. Town Planner Hunter Nestor stated that staff plans to abate ni Horror Fields, Kiser-Sawmills, Helena St. Fence/buffer. Town Planner Hunter Nestor stated that a complaint was received on April 10,2019. Town Planner Hunter Nestor stated that the property is not in compliance with the conditions set in CUP. Town  removed and house demolished by end of2019;  Spring 2020;    Page 7  Planner Hunter Nestor stated that a NOV letter was sent out on April 11, 2019, with a deadline of May 10, 2019. Town Planner Hunter Nestor stated that he made a site visit on May 30, 2019 and owner is working to get property in compliance but there are still some other areas that need to be addressed. Town Planner Hunter Nestor stated that he made another site visit on September 28, 2019, and the property is currently in compliance with the CUP. Town Planner. Hunter Nestor stated that he will Charles and Patsy Crotts, 4200 Crotts MHP Dr. Overgrown Vegetation. Town Planner Hunter Nestor stated that a complaint was made on May 21,2019, and al NOV letter was sent out on June 3, 2019. Town Planner Hunter Nestor stated that the NOV letter came back and was resent to updated address on May 28, 2019. A second NOV letter was sent out on July 30, 2019, with a new deadline of August 8, 2019. Town Planner Hunter Nestor stated that he had received no response and no progress had been made as of August 8, 2019. Town Planner Hunter Nestor stated that he received atelephone call on September 17,2019, asking ifthe property was going to be abated. Town Planner Hunter Nestor stated that a final NOV was sent to all members that were identified that had a stake ini the property on September 19, 2019. Town Planner Hunter Nestor stated that a daughter of Mr. and Mrs. Crotts contacted him and stated that the property was sold in 2006 and should not be in their name, Town Planner Debra Baker, 4476 Rual Dr. Overgrown vegetation/garbage and rubbish. Town Planner Hunter Nestor received a written complaint on May 22,2019. Town Planner Hunter Nestor sent a NOV letter with a deadline of June 11, 2019. Town Planner Hunter Nestor stated that he has received no response, but the property had been mowed as of August 13, 2019. Town Planner Hunter Nester stated that the rest ofthe property is still not in compliance, but no other complaints have been made; Timberline Lumber Co, Inc, 4221 US Highway 321A. Vegetation/Property Maintenance. Town Planner Hunter Nestor stated that he received a complaint on July 2, 2019 and sent a NOV letter on July 16, 2019. Town Planner Hunter Nestor stated that he has had no response as of August 8, 2019. Town Planner Hunter Nestor stated that he sent a second NOV letter on August 8, 2019, with a new deadline of August 20, 2019. Town Planner Hunter Nestor stated that some William and Lana Barlow, 2141 Stamey Rd. Living in RV/Camper. Town Planner Hunter Nestor stated that he received a complaint on September 27, 2019. Town Planner Hunter Nestor stated that he checked the property and the RV seems to be occupied. Town Planner Hunter Nestor stated that a NOV letter was sent on October  continue to monitor all October while the Horror Fields are open;  Hunter Nestor stated that staff would do more research.  Overgrown  progress has been made;  1,2019, with a deadline of October 17,2019.  No Council action was: required.  COUNCIL COMMENT: Mayor Johnnie Greene asked if anyone on Council had any  comments or questions at this time:    Page 8  Joe Norman thanked everyone for coming out and hoped everyone had a safe trip home.  Keith Warren thanked everyone for coming.  Interim Town Manager Karen Clontz wanted to invite everyone to the Sawmills Fall Festival  and Tractor Treat scheduled for October 25, 2019, from Noon to 6:00pm.  CLOSED SESSION FOR. ATTORNEY CLIENT PRIVILEGE PURSUANT TONCGS S 143-318.11 (a), 5(a) and 6: Mayor Johnnie Greene asked for a motion to go into closed Clay Wilson made a motion, and Rebecca Johnson seconded, to go into closed session pursuant to NCGS $ 143-318.11(a), 5(a) and 6 at approximately 6:26pm. All were in favor. Clay Wilson made a motion, and Joe Norman seconded, to come out of closed session at  session.  approximately 6:50pm. All were in favor.  COUNCIL ADJOURN: Mayor Johnnie Greene asked for a motion to adjourn.  Clay Wilson made a motion, and Joe Norman seconded, to adjourn the meeting. All were in  favor.  The meeting was adjourned at approximately 6:50pm.  Johnnie Greene, Mayor  Julie A. Good, Town Clerk    AGENDA ITEM 7A  MEMO DATE: SUBJECT:  November 19, 2019 Recognition: Recycle Rewards Program  Discussion:  The Town of Sawmills would like to congratulate Freida Whisnant on winning the Recycle Rewards Program for the month ofl November. Mayor Johnnie Greene will present her with a Certificate of Appreciation. A thirty-two dollar ($32.00) credit will be added to the current  sanitation bill.  Recommendation: No Council action is required.    AGENDAITEM8  MEMO DATE: SUBJECT:  November 19, ,2018 Public Hearing: Town ofSawmills Code of Ordinances, Phase II Stormwater Ordinance  Discussion:  Since contracting with the WPCOG, a draft of the required Stormwater Management Plan (SWMP) has been submitted to the State and awaiting the State's feedback. Once an acceptable SWMP and NPDES permit are granted by the State, and in order to enforce the Stormwater NPDES permit, the Town is required to adopt a Stormwater and Illicit Discharge Ordinance with the WPCOG as the administrator of the stormwater plan. The purpose of the code is to comply with NC General Statute requirements. The adoption of the proposed changes will enhance the  overall protection of stormwater.  Recommendation:  Staffrecommends Council approve the Stormwater and Illicit Discharge Ordinance, as written,  with the WPCOG as the administrator oft the stormwater plan.    TOWN OF SAWMILLS NORTH CAROLINA Phase II Stormwater Ordinance  1    Phase II Stormwater Ordinance SECTION1 1:GENERAL PROVISIONS 101 Title 102 Authority 103 Findings 104 Purpose 105 Applicability and) Jurisdiction 106 Interpretation 107 Design Manual 109 Severability  108 Relationship to Other Laws, Regulations and Private Agreements  110 Effective Date and Transitional Provisions SECTION 2: ADMINISTRATION AND PROCEDURES 201 Review and Decision-Making Entities 202 Review Procedures 203 Applications for Approval 204 Approvals 205 Appeals SECTION 3: STANDARDS 301 General Standards  302 Development Standards forLow-Density Projects 303 Development standards for High-Density Projects 304 Standards for Stormwater Control Measures 305 Dedication of BMPS, Facilities & Improvements 307 Additional standards for special situations 401 General Standards for Maintenance 402 Operation and Maintenance Agreement 403 Inspection Program 404 Performance Security for Installation and Maintenance 405 Notice to owners 406 Records of Installation and Maintenance Activities 407 Nuisance 408 Maintenance Easement SECTION 5: ENFORCEMENT AND VIOLATIONS 501 General 502 Remedies and Penalties 503 Procedures SECTION 6: DEFINITIONS 601 Terms Defined SECTION7ITICIT DISCHARGES 701 Title And Purpose 702 Authority  306 Variances 308 Onsite wastewater SECTION 4: MAINTENANCE  2    703 Definitions 706 Enforcement  704 Ilicit Dischatges And Connections  705 Right Ofl Entry/Powers And. Authority For Inspection  3    SECTION1 1: GENERAL PROVISIONS  101 TITLE  This ordinance shall be officially known as "The Phase II Stormwater Ordinance."Itis  referred to herein as "this ordinance."  102: AUTHORITY  The' Town of Sawmills is authorized to adopt this ordinance pursuant to North Carolina law, including but not limited to. Article 14, Section 5 of the Constitution of North Carolina; Town of Sawmills; North Carolina General Statutes 143-214.7 and rules promulgated by the Environmental Management Commission thereunder; Session Law 2004-163; Chapter 160A,  SS174,185. 103 FINDINGS  Itis hereby determined that:  Development and redevelopment: alter the hydrologic response of local Watersheds and: increase stormwater runoff: rates and volumes, flooding, soil erosion, stream channel erosion, nonpoint and point source pollution, and sediment transport and deposition, as well as These changes in stormwater runoff contribute to increased quantities of water-borne pollutants and alterations in hydrology that are harmful to public health and safety as well as These effects can be managed and minimized by applying proper design and well-planned Further, the Federal Water Pollution Control Act of1972 ("Clean Water Act") and federal Phase II Stormwater Rules promulgated under it, as well as rules of the North Carolina Environmental Management Commission promulgated in response to federal Phase. II requirements, compel certain urbanized areas, including this jurisdiction, to adopt minimum Therefore, the' Town of Sawmills establishes this set of water quality and quantity regulations tomeet the requirements of state and federal law regarding control of stormwater runoff and  reducing groundwater recharge; to the natural environment; and  controls to manage stormwater runoff from development sites.  stormwater controls such as those included: in this ordinance.  discharge. 104 PURPOSE  (A) General  The purpose of this ordinance is to protect, maintain and enhance the public health, safety, environment and general welfare by establishing minimum requirements and procedures to control the adverse effects ofincreased post-development stormwater runoffa and nonpoint and point source pollution associated with new development and redevelopment [as well as illicit discharges into municipal stormwater systems). It has been determined that proper management of construction-related and post- dmagpmemfstormwater: runoff will minimize damage to public and private property  4    and: infrastructure; safeguard the public health, safety, and general welfare; and  protect water and aquatic resources.  (B) Specific  This ordinance seeks to meet its general purpose through the following specific 1.1 Establishing decision-making processes for development that protect the integrity of watersheds and preserve the! health of watèr resources; 2. Requiring that new development and redevelopment maintain the pre-development hydrologic response in their post-development state as nearly as practicable for the applicable design storm to reduce flooding, streambank erosion, nonpoint and point source pollution and increases in stream temperature, and to maintain the 3. Establishing minimum post-development stormwater management standards and design criteria for the regulation and control of stormwater runoff quantity 4. Establishing design and review criteria for the construction, function, and use of sinctura!. stormater. BMPS that may be used to meet the minimum post- 5. Encouraging the use of better management and site design practices, such as the use of vegetated conveyances for stormwater and the preservation of greenspace, riparian buffers and other conservation areas to the maximum 6.1 Establishing provisions for the long-term responsibility for and maintenance of structural and nonstructural. stormater. BMPS to ensure that they continue to function as designed, are maintained appropriately, and pose no threat to public 7.1 Establishing administrative procedures for the submission, review, approval and disapproval of. stormater, management plans, for the inspection of approved projects, and to assure appropriate long-term maintenance. 8. Coordinating site design plans that include open space and natural areas with 9. Controlling illicit discharges into the municipal separate stormwater system.  objectives and means:  integrity of stream channels and aquatic habitats;  and quality;  development stormwater management standards;  extent practicable;  safety;  the' Town of Sawmills,  105 APPLICABILITY AND JURISDICTION  (A) General  Beginning with and subsequent to its effective date, this ordinance shall be applicable to all development and redevelopment, including, but not limited to, site plan  5    applications, subdivision applications, and grading applications, unless exempt  pursuant to Subsection (B) oft this Section, Exemptions.  (B) Exemptions  Development that cumulatively disturbs less than one acre and does not exceed 20,000 square feet or impervious area and does noti include disturbances within a stream buffer, filling or excavation in excess of1,000 cubic yards or filling and excavation that would impact an adjoining parcel through alteration or drainage paths, ponding or water or velocity of stormwater flow is not part ofa larger common plan of development or salei is exempt from the provisions oft this ordinance. Redevelopment that cumulatively disturbs less than one acre and does not have a net increase. in impervious area and is not part ofal larger common plan of development or Develpment and redevelopment that disturb less than one acre are not exempt if such activities are part ofa larger common plan of development or. sale, even though multiple, separate or distinct activities take place at different times on different schedules. Activities that are exempt from permit requirements of Section 404 of the federal Clean Water Act as specified in 40 CFR 232 (primarily, ongoing farming and forestry activities) are exempt from the provisions of this ordinance. (C) No Development or Redevelopment Until Compliance and Permit  salei is exempt from the provisions oft this ordinance.  No development or redevelopment shall occur except in compliance with the provisions oft this ordinance or unless exempted. No development for which aj permit is requited pursuant to this ordinance shall occur except in compliance with the provisions,  conditions, and limitations of the permit.  (D) Map  The provisions of this ordinance shall apply within the areas designated on the map titled "Phase II Stormwater Map ofTown of Sawmills, North Carolina" ("the Stormwater Map"), which is adopted simultaneously herewith. The Stormwater Map and all explanatory matter contained thereon accompanies and is hereby made aj part The Stormwater Map shall be kept on file by the Stormwater Administrator and shall be updated to take into account changes in the land area covered by this ordinancea and the geographic location of all structural. BMPs permitted under this ordinance. In the event ofa dispute, the applicability of this ordinance toa particular area ofland or BMP shall be determined by reference to the North Carolina Statutes, the North Carolina Administrative Code, and local zoning and  of this ordinance.  jurisdictional boundary ordinances.  106 INTERPRETATION  (A) Meaning and Intent  All provisions, terms, phrases, and expressions contained in this ordinance shall be construed according to the general and specific purposes set forth in Section 104,  6    Purpose. Ifa different or more specific meaning is given fora term defined elsewhere in Town of Sawmills Code of Ordinances, the meaning and application of the term in this ordinance shall control for purposes of application oft this  ordinance..  (B) Text Controls in Event of Conflict  In the event ofa conflict or inconsistency between the text oft this ordinance and any heading, caption, figure, illustration, table, or map, the text shall control.  (C) Authority for Interpretation  The Stormwater Administrator has authority to determine the interpretation of this ordinance. Any person may request an interpretation by submitting a written request to the Stormwater Administrator, who shall respond in writing within 30 days. The Stormwater Administrator shall keep on file a record of all written interpretations of  this ordinance.  (D) References to Statutes, Regulations, and Documents  Whenever reference is made to a resolution, ordinance, statute, regulation, manual (including the Design. Manua), or document, it shall be construed as a reference to the most recent edition ofs such that has been finalized and published with due provision for notice and comment, unless otherwise specifically stated.  (E) Computation ofTime  The time in which an act is to be done shall be computed by excluding the first day and including the last day. Ifa deadline or required date of action falls on a Saturday, Sunday, or holiday observed by the Town of Sawmills, the deadline Of required date ofaction shall be the next day that is not a Saturday, Sunday or holiday observed by the' Town of Sawmills. References to days are calendar days unless otherwise stated. Any act authorized by this Ordinance to be carried out by the Stormwater Administrator ofTown of Sawmills may be carried out by his or her designee.  (F) Delegation of Authority  (G) Usage  (1) Mandatory and Discretionary Terms  The words "shall," "must," and "will" are mandatory ini nature, establishing an obligation or duty to comply with the particular provision. The words "may"  and "should" are permissive in nature.  (2) Conjunctions  Unless the context clearly indicates the contrary, conjunctions shall be interpreted as follows: The word "and" indicates that all connected items,  7    conditions, provisions and events apply. The word "or" indicates that one or more of the connected items, conditions, ptovisions or events apply.  (3) Tense, Plurais, and Gender  Words used in the present tense include the future tense. Words used in the singular number include the plural number and the plural number includes the singular number, unless the context of the particular usage clearly indicates otherwise. Words used in the masculine gender include the feminine gender,  and vice versa.  (H) Measurement and Computation  Lot area refers to the amount ofk horizontal land area contained inside the lot lines  ofal lot or site.  107 DESIGN MANUAL  (A) Reference to Design Manual  The Stormwater. Administrator shall use the policy, criteria, and information, including technical specifications and standards, in the Design. Manualas the basis for decisions about stormwater permits and about the design, implementation and performance of structural. and mon-structural. stormmater. BMP. The Design Mamalincludes al list of acceptable stormwater treatment practices, including specific design criteria for each stormwater practice. Stormwater treatment practices that are designed, constructed, and maintained in accordance with these design and sizing criteria will be presumed to meet the minimum water quality  performance standards of the Phase II laws.  (B) Relationship ofl Design Manual to Other Laws and Regulations  Ift the specifications or guidelines of the Design Manual are more: restrictive or applya a higher standard than other laws or regulations, that fact shall not prevent application  of the specifications or guidelines in the Design Manual.  (C) Changes to Standards and Specifications  If the standards, specifications, guidelines, policies, criteria, Or other information in the Design Manual are amended subsequent to the submittal of an application for approval pursuant to this ordinance but prior to approval, the new information shall control and shall be utilized in reviewing the application and: ini implementing this  ordinance with regard to the application.  108 RELATIONSHIP TO OTHER LAWS, REGULATIONS AND PRIVATE  AGREEMENTS  (A) ConfictofLAws  This ordinance is noti intended to modify or repeal any other ordinance, rule, regulation or other provision oflaw. The requirements of this ordinance are in addition to the requirements of any other ordinance, rule, regulation or other  8    provision of law. Where any provision of this ordinance imposes restrictions different from those imposed by any other ordinance, rule, regulation or other provision of law, whichever provision is more restrictive or imposes higher protective standards for human or environmental health, safety, and welfare shall  control. (B) Private Agteements  This ordinance is not intended to: revoke or repeal any easement, covenant, or other private agreement. However, where the regulations of this ordinance are more restrictive or impose higher standards or requirements than such an easement, covenant, or other private agreement, the requirements of this ordinance shall govern. Nothing in this ordinance shall modify Or repeal any private covenant or deed restriction, but such covenant or restriction shall notl legitimize any failure to comply with this ordinance. In no case shall Town of Sawmills be obligated to enforce the provisions ofanye easements, covenants, or agreements between private  parties.  109 SEVERABILITY  If the provisions of any section, subsection, paragraph, subdivision or clause of this ordinance shall be adjudged: invalid by a court of competent jurisdiction, such judgment shall not affect or invalidate the remainder of any section, subsection, paragraph, subdivision or  clause of this ordinance. (A) Effective Date  110 EFFECTIVE DATE AND TRANSITIONAL PROVISIONS  This Ordinance shall take effect on November 19, 2019.  (B) Final Approvals, Complete Applications  All development and redevelopment projects for which complete and full applications were submitted and approved by the' Town of Sawmills prior to the effective date of this ordinance and which remain valid, unexpired, unrevoked and not otherwise terminated at the time of development Or redevelopment shall be exempt from complying with all provisions of this ordinance dealing with the control and/or management of post-construction runoff, but shall be required to comply with all other applicable provisions, including but not limited to illicit discharge provisions. Aj phased development plan shall be deemed approved prior to the effective date of this ordinance ifit has been approved by all necessary government units, it remains valid, unexpired, unrevoked and not otherwise terminated, and: it shows: 1.1 For the initial or first phase of development, the type and intensity of use fora specific parcel or parcels, including at a minimum, the boundaries oft the project and 2.1 For any subsequent phase of development sufficient detail so that implementation of the requirements of this ordinance to that phase of development would: require a material change in that phase of the plan.  2subdivision plan that has been approved.  9    (C) Violations Continue  Any violation of provisions existing on the effective date oft this ordinance shall continue to be 2 violation under this ordinance and be subject toj penalties and enforcement under this ordinance unless the use, development, construction, or other  activity complies with the provisions of this ordinance.  10    SECTION 2: ADMINISTRATION AND PROCEDURES 201 REVIEW AND DECISION-MAKING ENTITIES  (A) Stormwater Administrator (1) Designation  A Stormwater. Administrator shall be designated by the Board of Alderman to  administer and enforce this ordinance. Powers and Duties  In addition to the powers and duties that may be conferred by other provisions oft the' Town Code of Ordinances and other laws, the Stormwater Administrator shall have the following powers and duties under this ordinance: a. To review and approve, approve with conditions, or disapprove applications for approval of plans pursuant to this ordinance. Tomake determinations and render interpretations oft this ordinance. To establish application requirements and schedules for submittal and review ofa applications and appeals, to review and make recommendations to the Board of. Alderman on applications for development or redevelopment approvals. d. Toenforce the provisions of this ordinance in accordance with its enforcement provisions. To maintain récords, maps, forms and other official materials as relate tot the adoption, amendment, enforcement, and administration of this Toj provide expertise and technical assistance to the Board of To designate appropriate other person(s) who shall carry out the powers and duties of the Stormwater. Administrator. h. Toi take any other action necessary to administer the provisions of this  ordinance.  Alderman, upon request.  ordinance.  202 REVIEW PROCEDURES  (A) Permit Required; Must Apply for Permit  A stormwater permit is required for all development and redevelopment unless exempt pursuant to this ordinance. A permit may only be issued subsequent to a properly submitted and reviewed permit application, pursuant to this section.  11    (B) Effect ofI Permit  As stormwater permit shall govern the design, installation, and construction of stormwater management and control practices on the site, including structural. BMPS and elements of site design for stormwater management other than structura!. BMPS. The permit is intended to provide a mechanism for the review, approval, and inspection oft the approach to be used for the management and control of stormwater for the development or redevelopment site consistent with the requirements ofthis ordinance, whether the approach consists of structural BMPS Or other techniques such as low-impact or low-density design. The permit does not continue ine existence indefinitely after the completion of the project; rather, compliance after ptoject construction is assured by the maintenance provisions oft this ordinance. All applications required pursuant to this Code shall be submitted to the Stormwater Administrator by thel land omner or the land opmer's duly authorized agent. (D) Establishment of Application Requirements, Schedule, and Fees  (C) Authority to File Applications  (1) Application Contents and Form  The Stormwater Administrator [Stormwater Advisory Board) shall establish requirements for the content and form of all applications and shall amend and update those requirements from time to time. Atat minimum, the stormwater permit application shall describe in detail how post-development stormwater runoff will be controlled and managed, the design of all stormwater facilities and practices, and how the proposed project will meet the requirements of this  ordinance. (2) Submission Schedule  The Stormwater Administrator shall establish a submission schedule for applications. The schedule shall establish deadlines by which complete applications must be submitted for the purpose of ensuring-that there is adequate time to review applications; and that the various stages in the review  process are accommodated. (3) Permit Review Fees  The Board of Alderman shall establish permit review fees, as well as, policies regarding refund of any fees upon withdrawal of an application, and may amend  and update the fees and policies from time to time.  (4) Administrative Manual  For applications required under this Code, the Stormwater. Administrator shall compile the application requirements, submission schedule, fee schedule, a copy oft this ordinance, and information on how and where to obtain the Design  12    Manual in an. Administrative Manual, which shall be made available to the  public.  (E) Submittal of Complete Application  Applications shall be submitted to the Stormwater Administrator pursuant to the application submittal schedule in the form established by the Stormwater Administrator, along with the appropriate fee established pursuant to this section. An application shall be considered as timely submitted only when it contains all elements ofa complete application pursuant to this ordinance, along with the appropriate fee. If the Stormwater Administrator finds that an application is incomplete, the applicant shall be notified of the deficient elements and shall be provided with an opportunity to submit a complete application. However, the submittal of an incomplete application shall not suffice to meet a deadline contained  in the submission schedule established above.  (F) Review  Within 30 working days after a complete application is submitted, the Stormwater Administrator shall review the application and determine whether the application  complies with the standards of this ordinance.  (1) Approval  Ifthe Stormwater Administrator finds that the application complies with the standards of this ordinance, the Stormwater Administrator shall approve the application. The Stormwater Administrator may impose conditions of approval as needed to ensure compliance with this ordinance. The conditions shall be  included as part of the approval. (2) Fails to Comply  Ift the Stormwater Administrator finds that the application fails to comply with the standards of this ordinance, the Stormwater Administrator shall notify the applicant and shall indicate how the application fails to comply. The applicant shall have an opportunity to submit a revised application.  (3) Revision and Subsequent Review  A complete revised application shall be reviewed by the Stormwater Administrator within 15 working days after its re-submittal and shall be approved, approved with conditions or disapproved. Ifai revised application is not re-submitted within thirty (30) calendar days from the date the applicant was notified, the application shall be considered withdrawn, and a new submittal for the same or substantially the same project shall be required along with the appropriate fee for a new submittal. One re-submittal ofa revised application may be submitted without payment of an additional permit review fee. Any re-submittal after the first re-submittal  13    shall be accompanied by a permit review fee additional fee, as established  pursuant to this ordinance.  203 APPLICATIONS FOR. APPROVAL  (A) Concept Plan and Consultation Meeting  Before a stormwater management permit application is deemed complete, the Stormwater Administrator or developer may request a consultation on a concept plan for the post-construction stormwater management system to be utilized in the proposed. development project. This consultation meeting should take place at the time oft the preliminary plan of subdivision or other early step in the development process. The purpose of this meeting is to discuss the post-construction stormwater management measures necessary for the proposed project, as well as to discuss and assess constraints, opportunities and potential apptoaches to stormwater management designs before formal site design engineering is commenced. Local watershed plans and other relevant resource protection plans should be consulted in To accomplish this goal, the following information should bei included in the concept plan, which should be submitted in advance of the meeting: (1) Existing Conditions / Proposed Site Plans  the discussion of the concept plan.  Existing conditions and proposed site layout sketch plans, which illustrate ata minimum: existing and proposed topography; perennial and: intermittent streams; mapping of predominant soils from soil surveys (ifavailable); boundaries of existing predominant vegetation; proposed limits of clearing and grading; and location of existing and ptoposed. roads, buildings, parking areas  and other impervious surfaces. (2) Natural Resources Inventory  A written or graphic inventory of natural resources at the site and surrounding area as it exists prior to the commencement of the project. This description should include a discussion ofs soil conditions, forest cover, geologic features, topography, wetlands, and native vegetative areas on the site, as well as the location and boundaries of other natural feature protection and conservation areas such as lakes, ponds, floodplains, stream buffers and other setbacks (e.g, drinking water well setbacks, septic setbacks, etc.). Particular attention should be paid to environmentally sensitive features that provide particular opportunities or constraints for development and stormwater management. (3) Stormwater Management System Concept Plan  A written or graphic concept plan of the proposed post-development stormwater management system including; preliminary selection and location ofproposed structural stormwater controls; low-impact design elements; location of existing and proposed conveyance systems such as grass channels, swales, and storm drains; flow paths; location off floodplain/loodway limits; relationship of site to upstream and downstream properties and drainages; and preliminary location of any proposed stream channel modifications, such as bridge or culvert crossings.  14    (B) Stormwater Management Permit Application  The stormwater management permit application shall detail how post-development stormwater runoff will be controlled and managed and how the proposed project will meet the requirements oft this ordinance, including Section 3, Standards. All such plans shall be prepared by a qualified registered North Carolina professional engineer, surveyor, soil scientist or landscape architect, and the engineer, surveyor, soil scientist or landscape architect shall perform services only in their area of competence, and shall verify that the design of all stormwater management facilities and practices meets the submittal requirements for complete applications, that the designs and plans are sufficient to comply with applicable standards and policies found in the Derign Manual, and that the designs and plans ensure compliance with The submittal shall include all of the information required. in the submittal checklist established by the Stormwater Administrator. Incomplete submittals shall be' treated  this ordinance.  pursuant to Section 2-202(D). (C) As-Built Plans and Final Approval  Upon completion ofa project, and before a certificate of occupancy shall be granted, the applicant shall certify that the completed project is in accordance with the approved stormwater management plans and designs, and shall submit actual "as built" plans for all stormwater management facilities or practices after final The plans shall show the final design specifications for all stormwater management facilities and practices and the field location, size, depth, and planted vegetation of allr measures, controls, and devices, as installed. The designer oft the stormwater management measures and plans shall certify, under seal, that the as-built stormwater measures, controls, and devices are: in compliance with the approved stormwater management plans and designs and with the requirements oft this ordinance. A final inspection and approval by the Stormwater Administrator shall  construction is completed.  occur before the release of any performance securities.  (D) Other Permits  No certificate of compliance or occupancy shall bei issued by the Caldwell County Building Inspectors without final as-built plans and a final inspection and approval by the Stormwater Administrator, except where multiple units are served by the stormwater practice or facilities, in which case the Caldwell County Building Inspections Department may elect to withhold a percentage of permits or certificates of occupancy until as-built plans are submitted and final inspection and  approval has occurred.  204 APPROVALS  (A) EffectofA Approval  Approval authorizes the applicant to go forward with only the specific plans and activities authorized ini the permit. The approval shall not be construed to exempt the applicant from obtaining other applicable approvals from local, state, and federal  authorities.  15    (B) Time Limit/Expiration  An approved plan shall become null and void: if the applicant fails to make substantial progress on the site within one year after the date of approval. The Stormwater Administrator may grant a single, one-year extension oft this time limit, for good cause shown, upon receiving a written request from the applicant before the In granting an extension, the Stormwater Administrator may require compliance with standards adopted since the original application was submitted unless there has been substantial reliance on the original permit and the change in standards would  expiration of the approved plan.  infringe the applicant's vested rights.  205 APPEALS  (A) Right of Appeal  Any aggrieved person affected by any decision, order, requirement, or determination relating to thei interpretation or application of this ordinance made by the Stormwater Administrator, may file an appeal to the Board of Adjustment within 30  days.  (B)  Filing of Appeal and Procedures  Appeals shall be taken within the specified time period by filing a notice of appeal and specifying the grounds for appeal on forms provided by Town of Sawmills. The Stormwater Administrator shall transmit to the Board of Adjustment all documents constituting the record on which the decision appealed from was taken. The hearing conducted by the Board of Adjustment shall be conducted in the nature ofa quasi-judicial proceeding with all findings of fact supported by competent,  material evidence. (C) Review by Superior Court  Every decision of the Board of Adjustment shall be subject to Superior Court review by proceedings in the nature of certiorari. Petition for review by the Superior Court shall be filed with the Clerk of Superior Court within thirty (30) days after the  latter of the following:  (1) The decision of the Board of Adjustment is filed; or  (2) A written copy oft the decision is delivered to every aggrieved party who has filed a written request for such copy with the Chair of the Board of Adjustment at  the time of its hearing of the case.  16    SECTION3:S STANDARDS 301 GENERALSTANDARDS  All development and redevelopment to which this ordinance applies shall  with the comply  standards of this section.  302 DEVELOPMENT STANDARDS FOR LOW-DENSITYF PROJECTS Lon-density prgjects shall comply with each of the following standards:  (A) Stormwater runoff from the development shall be transported from the development by vegetated conveyances to the maximum extent practicable. (B) Stream buffers shall be maintained on all sides of perennial and intermittent surface waters. The size oft the buffer for perennial surface waters shall be an undisturbed width of 30 feet, plus a vegetated setback of 20 feet. Buffers for intermittent surface waters shall be an undisturbed width of 30 feet. The buffer width is measured perpendicularly from the top oft the streambank, A perennial or intermittent surface water shall be deemed present if the feature is approximately shown on either the most: recent version of the soil survey map prepared by the Natural Resources Conservation Service oft the United States Department of Agriculture (USDA) or the most recent version oft the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Survey (USGS). An exception to this requirement may be allowed when surface waters are: not accordance with the provisions of15A NCAC 2B .0233 (3) (a) present or similar site-specific determination made using Division-approved methodology. (C) The approval of the stormwater permit shall require an enforceable restriction on property usage that runs with the land, such as a recorded deed restriction or protective covenants, to ensure that future development and redevelopment maintains the site consistent with the approved project  in  plans.  303 DEVELOPMENT STANDARDS FOR HIGH-DENSITY PROJECTS Higb-densily prgject shall implement stormwater control measures that  with comply each  of  the following standards:  (A) The measures shall control and treat runoff from the first inch oft rain, runoff volume drawdown time shall be a minimum of 48 hours, but not (B) All structural stormwater treatment systems used to meet these requirements shall be designed to have a minimum of 85% removal for Total Suspended Solids (TSS);  more than 120 hours.  annual average  (C) General engineering design criteria for all projects shall be in accordance with 15A NCAC2H.1008(4),. as explained in the Derign Manual;  17    (D) Stream buffers shall be maintained on all sides of perennial and intermittent surface waters, The size oft the buffer for perennial surface waters shall be an undisturbed width of30 feet, plus a vegetated setback of2 20 feet. Buffers for intermittent surface waters shall be an undisturbed width of 30 feet. The buffer width is measured perpendicularly from the top oft the streambank. A surface water shall be deemed present if the feature is approximately shown on either the most: recent version of the soil survey map prepared by thel Natural Resources Conservation Service of the United States Department of Agriculture (USDA) or the most recent version of the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Survey (USGS). An exception to this requirement may be allowed when surface waters are not present in accordance with the provisions of15ANCAC2B. .0233 (3)( (a) or similar site-specific determination made using Division-approved methodology. (E) On-site verification ofintermittent and perennial streams by a qualified professional is required for all development exceeding a cumulative 5 acres and 24 percent impervious coverage, or any commercial development. (F) The approval of the stormwater permit shall require an enforceable restriction on property usage that runs with the land, such as recorded deed restrictions or ptotective covenants, to ensure that future development and redevelopment maintains the site consistent with the approved project plans.  304 STANDARDS FOR STORMWATER CONTROL MEASURES (A) Evaluation According to Contents ofDesign Manual  All stormwater control measures and stormwater treatment practices (also referred to as Best.Management Practices, or BMPs) required under this ordinance shall be evaluated by the Stormwater Administrator according to the policies, criteria, and information, including technical specifications and standards and the specific design criteria for each stormwater practice, in the. Derign Manual. The Stormwater Administrator shall determine whether proposed BMPs will be adequate to meet the  requirements of this ordinance.  (B) Determination of Adequacy; Presumptions and Alternatives  Stormwater treatment practices that are designed, and constructed, and maintained ina accordance with the criteria and specifications in the Design Mamual will be presumed to meet the minimum water quality and quantity performance standards oft this ordinance. Whenever an applicant proposes to utilize a practice or practices not designed and constructed in accordance with the criteria and specifications in the Design Manual, the applicant shall have the burden of demonstrating that the practice(s) will satisfy the minimum water quality and quantity performance standards of this ordinance. The Stormwater Administrator may require the applicant to provide the documentation, calculations, and examples necessary for the Stormwater Administrator to determine whether such an affirmative showing is  made.  (C) Separation from Seasonal High Water Table  18    For BMPs that require a separation from the seasonal high-water table, the separation shall be provided by at least 12 inches of naturally occurring soil above  the seasonal high-water table.  305 DEDICATIONOF: BMPS, FACILITIES & IMPROVEMENTS  The Towh ofSawmills may accept dedication of any existing or future stormwater management facility for maintenance, ptovided such facility meets all the requirements of this ordinance and: includes adequate and perpetual access and sufficient area, easement  Or otherwise, for inspection and: regular maintenance.  by  306 VARIANCES  (A). Any person may petition the' Town of Sawmills fora a variance granting permission to use the person's land: in ai manner otherwise prohibited by this ordinance. To qualify fora  variance, the petitioner must show all of the following:  (1) Unnecessary hardships would result from strict application oft this ordinance. (2) The hardships tesult from conditions that are peculiar to the property, such as (3) The hardships did: not result from actions taken by the petitioner. (4) The requested variance. is consistent with the spirit, purpose, and intent oft this ordinance; will secure public safety and welfare; and will preserve substantial justice. (B) The Town of Sawmills may impose reasonable and appropriate conditions and  the location, size, or topography of the property.  safeguards upon any variance it grants. (C) Statutory exceptions  Notwithstanding subdivision (A) oft this section, exceptions from the 30-foot landward location ofbuilt-upon area requirement as well as the deed restrictions and covenants requirements shall be granted in any of the following instances: protective (1) When there is a lack of practical alternatives for a road crossing, railroad crossing, bridge, airport facility, or utility crossing as long as it is located, designed, constructed, and maintained to minimize disturbance, provide maximum nutrient removal, protect against erosion and sedimentation, have the least adverse effects on aquatic life and habitat, and protect water quality to the maximum extent practicable (2) When there is a lack of practical alternatives foras stormwater management facility; a stormwater management pond; Or a utility, including, but not limited to, Water, sewer, or gas construction and maintenance corridor, as long as itisl located 15 feet landward of all perennial and intermittent surface waters and as as itis located, designed, constructed, and maintained to minimize disturbance, long provide maximum nutrient removal, protect against erosion and sedimentation, have the least adverse effects on aquatic life and habitat, and protect water quality to the  through the use of BMPs.  maximum extent practicable through the use of BMPs.  19    (3) A lack of practical alternatives may be shown by demonstrating that, considering the potential for a reduction in size, configuration, or density oft the proposed activity and all alternative designs, the basic project purpose cannot be practically accomplished in a manner which would avoid or result in less adverse impact to  surface waters.  307 ADDITIONAL STANDARDS FOR SPECIAL SITUATIONS  (A) Pet waste  (1)1 Restrictions on Pet Waste  (a) Its shall be unlawful for the owner or custodian of any dog to take it off the owner's own property limits without the means to properly remove and dispose (b) Itis the responsibility ofa dog's owner or custodian to clean up the dog's feces from any public or private property outside of the dog's owner's own property limits. Such property includes, but is not limited to, parks, rights-of- (c) "Means to properly remove and dispose of feces" shall consist ofhaving on or near one's person a device such as a plastic bag, or other suitable plastic or paper container, that can be used to clean up and contain dog waste until it can be disposed of in an appropriate container. Such a device must be produced and shown, upon request, to anyone authorized to enforce these ordinances. (d) This provision shall not apply to handicapped persons assisted by trained (e) "Public nuisance" is defined to include "a dog which deposits feces on public property or on private property without the consent of the owner or person in lawful possession of the private property, and the person owning, possessing, harboring orl having the care, charge, control or custody oft the dog fails to remove the feces so deposited. Provided, however, this definition shall  of the dog's feces from any public or private property.  way, paths, and public access areas.  guide or assistance dogs.  not apply to any dog assisting a handicapped person.  308 ONSITE WASTEWATER  (A)  Operation and Maintenance Requirements  Newand replaced onsite systems for domestic wastewater installed after the effective date of this ordinance shall be subject to the same requirements for operation and maintenance as structural. BMPS for stormwater, including, ata minimum, annual inspection reports and a1 recorded operation and maintenance agreement, pursuant to Section 4 of this ordinance, Standards for Operation and Maintenance  (B)  Onsite systems for domestic wastewater covered by this Ordinance shall be operated and maintained sO as to avoid adverse effects on surface water and groundwater, including eutrophication ofs surface water and microbial or nitrate contamination of groundwater. Septic tank residuals shall be pumped  20    whenever necessary to assure the proper operation of the system to meet these standards, and the septage shall be reused or disposed ofi in a manner that does not present significant risks to human health, surface water or  gtoundwater.  21    SECTION 4: MAINTENANCE  401 GENERAL STANDARDS FOR MAINTENANCE  (A)  Function of BMPs As Intended  The opmerofe each structural. BMPinstalled pursuant to this ordinance shall maintain and operate it sO as to preserve and continue its function in controlling stormwater quality and quantity at the degree or amount of function for which the structural  BMP was designed.  (B)  Annual Maintenance Inspection and Report  The person responsible for maintenance of any shructural. BMP installed pursuant to this ordinance shall submit to the Stormwater Administrator an inspection report from one of the following persons performing services only in their area of competence: a qualified registered North Carolina professional engineer, surveyor, landscape architect, soil scientist, aquatic biologist, or person certified by the North Carolina Cooperative Extension Service for stormwater treatment practice inspection and maintenance. The inspection report shall contain all oft the following: (2) The recorded book and page number of the lot ofeach structural BMP; (3) As statement that an inspection was made- of all. structural BMPs;  (1) The name and address of the land omer;  (4) The date the inspection was made;  (5) As statement that all inspected structural. BMPs are performing properly and are in compliance with the terms and conditions of the approved maintenance agreement required by this ordinance; and (6) The original signature and seal of the engineer, surveyor, or landscape All inspection reports shall be on forms supplied by the Stormwater Administrator. An original inspection report shall be provided to the Stormwater Administrator beginning one year from the date ofas-built certification and each year thereafter on  architect.  or before the date of the as-built certification.  402 OPERATION AND MAINTENANCE AGREEMENT  (A)  In General  Prior to the conveyance Of transfer of any lot or building site to be served by a structural. BMP pursuant to this ordinance, and prior to issuance of any permit for development or redevelopment requiring a structural. BMP pursuant to this ordinance, the applicant or ommerof the site must execute an operation and maintenance agreement that shall be binding on all subsequent opners of the site, portions of the site, and lots or parcels served by the. structural BMP. Until the transference of all property,  22    sites, or lots served by the structural. BMP, the original owner or applicant shall have primary responsibility for carrying out the provisions oft the maintenance agreement. The operation and maintenance agteement shall require the owner or owners to maintain, repair and, ift necessary, reconstruct the shructunal. BMP, and shall state the terms, conditions, and schedule of maintenance for the. shructural. BMP. In addition, it shall grant to Town of Sawmills a right of entry in the event that the Stormwater Administrator has reason to believe it has become necessary to inspect, monitor, maintain, repair, or reçonstruct the. shructural. BMP; however, in no case shall the right ofentry, ofitself, confer an obligation on Town of Sawmills to assume The operation and maintenance agreement must be approved by the Stormwater Administrator prior to plan approval, and it shall be referenced on the final plat and shall be recorded with the county Register of Deeds upon final plat approval2A copy of the recorded. maintenance agreement shall be given to the Stormwater Administrator within fourteen (14) days following its recordation.  responsibility for the structural, BMP.  (B)  Special Requirement for Homeowners' and Other Associations For all structural. BMPS required pursuant to this ordinance and that are to be or are owned and: maintained by al homeowners' association, property owners' association, or similar entity, the required operation and maintenance agreement shall include all (1) Acknowledgment that the association shall continuously operate and maintain the stormwater control and management facilities. (2) Establishment of an escrow account, which can be spent solely for sediment removal, structural, biological or vegetative replacement, major repair, or reconstruction of the. structural, BMPs. If structural. BMPs are not performing adequately or as intended or are not properly maintained, the Town of Sawmills, in its sole discretion, may remedy the situation, and in such instances the Town of Sawmills shall bei fully reimbursed from the escrow account. Escrowed funds may be spent by the association for sediment removal, structural, biological or vegetative replacement, major repair, and reconstruction oft the. structura! BMPs, provided that the' Town of (3) Both developer contribution and annual sinking funds shall fund the escrow account. Prior to plat recordation or issuance of construction permits, whichever shall first occur, the developer shall pay into the escrow account an amount equal to fifteen (15) per cent of the initial construction cost of the structural. BMPS. Two-thirds (2/3) of the total amount of sinking fund budget shall be deposited into the escrow account within the first five (5)years and the full amounts shall be deposited within ten (10) years following initial construction of the structural. BMPS. Funds shall be deposited each year into the escrow account. A portion of the annual assessments of the association shall include an: allocation into the escrow  of the following provisions:  Sawmills shall first consent to the expenditure.  23    account. Any funds drawn down from the escrow account shall be replaced in accordance with the schedule ofa anticipated work used to create the (4) The percent of developer contribution and lengths of time to fund the escrow account may be varied by the Town of Sawmills depending on the design and materials of the stormwater control and management facility. (5) Granting to the Town of Sawmills a right of entry to inspect, monitor, (6) Allowing the' Town of Sawmills to recover from the association and: its member's any and all costs the' Town of Sawmills expends to maintain or repair the. siructural. BMPs or to correct any operational deficiencies. Failure to pay the Town of Sawmills all ofits expended costs, after forty-five days written notice, shall constitute a breach oft the agreement. In case ofa deficiency, the' Town of Sawmills shall thereafter be entitled to bring an action against the association and its members to pay, or foreclose upon the lien hereby authorized by the agreement against the property, or both (Interest, collection costs, and attorney fees shall be added to the recovery). (7) A statement that this agreement shall not obligate the Town of Sawmills to maintain or repair any structura! BMPs, and the' Town ofSawmills shall not be liable to any person for the condition or operation of structural. BMPS. (8) As statement that this agreement shall not in any way diminish, limit, Or restrict the right of the Town of Sawmills to enforce any of its ordinances (9) A provision indemnifying and holding harmless the Town of Sawmills for any costs and injuries arising from or related to the structural BMP, unless the Town of Sawmills has agreed in writing to assume the maintenance responsibility for the BMP and has accepted dedication of any and all tights  sinking fund budget.  maintain, repair, and reconstruct shructural. BMPs.  as authorized byl law.  necessary to carry out that maintenance.  403 INSPECTION PROGRAM  Inspections and inspection programs by Town of Sawmills may be conducted or established on any reasonable basis, including but not limited to routine inspections; random inspections; inspections based upon complaints or other notice of possible violations; and joint inspections with other agencies inspecting under environmental ors safety laws. Inspections may include, but are not limited to, reviewing maintenance and: repair records; sampling discharges, surface water, groundwater, and: material or water in BMPs; and evaluating the condition of BMPs. Ift the onner or occupant of any property refuses to permit such inspection, the Stormwater Administrator shall proceed to obtain an administrative search warrant pursuant to G.S. 15-27.2 or its successor. No person shall obstruct, hamper or interfere with the Stormwater Administrator while carrying out his or her official  duties.  24    404 PERFORMANCE SECURITY FOR INSTALLATION AND MAINTENANCE  (A)  May Be Required  The' Town of Sawmmills may, at its discretion, require the submittal ofa performance security or bond with surety Or other acceptable legal arrangement prior to issuance of a permit in order to ensure that the structural BMPs are (1) Installed by the permit holder as required by the approved stormwater (2) Maintained by the owner as tequited by the operation and maintenance  management plan, and/or agreement. Amount (1) Installation  (B)  The amount of an installation performance security shall be the total estimated construction cost of the BMPs approved under the permit, plus 25%.  (2) Maintenance  The amount ofat maintenance performance security shall be the present value ofan annuity of perpetual duration based on a reasonable estimate of the annual cost ofi inspection, operation and maintenance oft the BMPs approved under the permit, at a discount rate that reflects the jurisdiction's cost of borrowing minus  areasonable estimate ofl long-term inflation. Uses of Performance Security  (C)  (1) Forfeiture Provisions  The performance security shall contain forfeiture provisions for failure, after proper notice, to complete work within the time specified, or to initiate or maintain any actions which may be required of the applicant or onnerin accordance with this ordinance, approvals issued pursuant to this ordinance, or an operation and maintenance agreement established pursuant to this ordinance. Upon default of the o1ner to construct, maintain, repair and, if necessary, reconstruct any. structural. BMPin accordance with the applicable permit Or operation and: maintenance agreement, the Stormwater Administrator shall obtain and use all or any portion oft the security to make necessary improvements based on an engineering estimate. Such expenditure of funds shall only be made after requesting the opnert to comply with the permit Or maintenance agreement. In the event ofa default triggering the use of installation performance security, the' Town of Sawmills shall not return of the unused deposited cash funds or other security, which shall be retained any for  Default  maintenance.  25    (3) Costs in Excess of Performance Security  IfTown of Sawmills takes action upon such failure by the applicant or opmer; the Town of Sawmills may collect from the applicant or onerthe difference between the amount of the reasonable cost of such action and the amount of the security held, in addition to any other penalties or damages due.  (4) Refund  Within sixty days of the final approvai, the installation performance security shall be refunded to the applicant or terminated, except any amount attributable to the cost (plus 25%) oflandscaping installation and ongoing maintenance associated with the BMPs covered by the security. Any such landscaping shall bei inspected one (1)year after installation with replacement for compliance with the approved plans and specifications and, if in compliance, the portion of the financial security attributable tol landscaping shall be released.  405 NOTICE TO OWNERS  (A)  Deed Recordation and Indications On Plat  The applicable operations and maintenance agreement, conservation easement, or dedication and acceptance into public maintenance (whichever is applicable) pertaining to every structura!. BMP shall be referenced on the final plat and shall be recorded with the county Register of Deeds upon final plat approval. Ifno subdivision plat is recorded for the site, then the operations and maintenance agreement, conservation easement, or dedication and acceptance into public maintenance, whichever is applicable shall be recorded with the county Register of Deeds so as to appear in the chain of title of all subsequent purchasers under  generally accepted searching principles.  (B)  Signage  Where appropriate in the determination of the Stormwater Administrator to assure compliance with this ordinance, structural. BMPs shall be posted with a conspicuous sign stating who is responsible for required maintenance and annual inspection. The  sign shall be maintained so as to remain visible and legible.  406 RECORDS OF INSTALLATION AND MAINTENANCE ACTIVITIES  The owner of each structural. BMP shall keep records ofi inspections, maintenance, and repairs for atl least five years from the date of creation of the record and shall submit the same upon  reasonable request to the Stormwater Administrator.  407 NUISANCE  The omner of each stormwater BMP, whether structural or non-shuctura BMP, shall maintain it  sO as not to create or result in a nuisance condition.  408 MAINTENANCE EASEMENT  Every. structural BMP: installed pursuant to this ordinance shall be made accessible for adequate maintenance and repair by a maintenance easement. The easement shall be  26    recorded and its terms shall specify who may make use of the easement and for what  purposes,  27    SECTION5: ENFORCEMENT AND VIOLATIONS  501 GENERAL  (A)  Authority to Enforce  The provisions of this ordinance shall be enforced by the Stormwater Administrator, his or her designee, or any authorized agent ofTown of Sawmills. Whenever this section refers to the Stormwater Administrator, it includes his or her designee as well as any authorized agent ofTown of Sawmills.  (B)  Violation Unlawful  Any failure to comply with an applicable requirement, prohibition, standard, of limitation: imposed by this ordinance, or the terms or conditions of any permit or other development or redevelopment approval or authorization granted pursuant to this ordinance, is unlawful and shall constitute a violation oft this ordinance.  (C)  Bach Day a Separate Offense  Each day that a violation continues shall constitute a separate and distinct violation  or offense. (D)  Responsible Persons/Entities:  Any person who erects, constructs, reconstructs, alters (whether actively or passively), or fails to erect, construct, reconstruct, alter, repair ot maintain any structure, BMP, practice, or condition in violation of this ordinance shall be subject to the remedies, penalties, and/or enforcement actions in accordance with this section. Persons subject to the remedies and penalties set forth herein may include any architect, engineer, builder, contractor, developer, agency, or any other person who participates in, assists, directs, creates, causes, or maintains a condition that results in or constitutes a violation of this ordinance, or fails to take appropriate action, sO that a violation of this ordinance results Of persists; Or an owmer, any tenant or occupant, or any other person, who has control over, or responsibility for, the use or development of the property on which the violation occurs. For the purposes of this article, responsible person(s) shall include but not be (1) Person Maintaining Condition Resulting In or Constituting Violation An architect, engineer, builder, contractor, developer, agency, or any other person who participates in, assists, directs, creates, causes, oft maintains a condition that constitutes a violation oft this ordinance, or fails to take appropriate action, so that a violation of this ordinance results or persists.  limited to:  (2) Responsibility For Land or Use ofLand  The ownerof the land on which the violation occurs, any tenant or occupant of the property, any person who is responsible for stormwater controls Or practices pursuant to a private agreement or public document, or any person,  28    who has control over, or responsibility for, the use, development or redevelopment of  the property.  502 REMEDIES AND PENALTIES  The remedies and penalties provided for violations of this ordinance, whether civil or criminal, shall be cumulative and in addition to any other remedy provided by law, and may  be exercised. in any order. (A)  Remedies  (1) Withholding of Certificate of Occupancy  The Stormwater Administrator or other authorized agent may refuse to issuea certificate of occupancy for the building Or other improvements constructed or being constructed on the site and served by the stormwater practices in question until the applicant or other responsible person has taken the remedial measures set forth in the notice of violation or has otherwise cured the violations (2) Disapproval of Subsequent Permits and Development Approvals As long as a violation of this ordinance continues and remains uncorrected, the Stormwater. Administrator or other authorized agent may withhold, and the Town of Sawmills Planning Board may disapprove, any request for permit or develapment approval or authorization provided for by this ordinance or the zoning, subdivision, and/or building regulations, as appropriate for the land on  described therein.  which the violation occurs. (3) Injunction, Abatements, etc.  The Stormwater Administratot, with the written authorization oft the Town Administrator, may institute an action in a court of competent jurisdiction fora mandatory or prohibitory injunction and order of abatement to correct a violation of this ordinance. Any person violating this ordinance shall be subject to the full range of equitable remedies provided in the General Statutes orat (4) Correction as Public Health Nuisance, Costs as Lien, etc.  common law.  If the violation is deemed dangerous or prejudicial to the public health Or public safety and is within the geographic limits prescribed by North Carolina G.S.S 160A-193, the Stormwater Administrator, with the written authorization oft the Town Administrator, may cause the violation to be corrected and the costs to  be assessed as a lien against the property.  (5) Stop Work Order  The Stormwater Administrator may issue a stop work order to the person(s) violating this ordinance. The stop work order shall remain in effect until the person has taken the remedial measures set forth in the notice of violation or has otherwise cured the violation Or violations described therein. The stop work  29    order may be withdrawn or modified to enable the person to take the necessary  remedial measures to cure such violation or violations.  (B)  Civil Penalties  Violation of this ordinance may subject the violator to a civil penalty to be recovered in a civil action in the nature ofa debt if the violator does not pay the penalty within 30 days after notice of the violation is issued by the Stormwater Administrator. Civil penalties may be assessed up to the full amount of penalty to which Town of Sawmills is subject for violations ofits Phase II Stormwater permit, orifno Phase II Stormwater permit exists for the jurisdiction, civil penalties may be  assessed up to the full amount allowed by law.  (C)  Criminal Penalties  Violation of this ordinance may be enforced as a misdemeanor subject to the  maximum fine permissible under North Carolina law.  503 PROCEDURES  (A)  mitiation/Complaint  Whenever: a violation of this ordinance occurs, or is alleged to have occurred, any person may file a written complaint. Such complaint shall state fully the alleged violation and the basis thereof, and shall be filed with the Stormwater Administrator, who shall record the complaint. The complaint shall bei investigated  promptly by the Stormwater Administrator.  (B)  Inspection  The Stormwater Administrator shall have the authority, upon presentation of proper credentials, to enter and inspect any land, building, structure, or premises to ensure  compliance with this ordinance.  (C)  Notice of Violation and Order to Correct  When the Stormwater Administrator finds that any building, structure, or land is in violation of this ordinance, the Stormwater Administrator shall notify, in writing, the property opmer or other person violating this ordinance. The notification shall indicate the nature oft the violation, contain the address or other description oft the site upon which the violation is occurring, order the necessary action to abate the violation, and give a deadline for correcting the violation. If civil penalties are to be assessed, the notice of violation shall also contain a statement oft the civil penalties to be assessed, the time of their accrual, and the time within which they must be The Stormwater Administrator may deliver the notice of violation and correction order personally, by the law enforcement or code enforcement personnel, by certified or registered mail, return receipt requested, or by any means authorized for the service of documents by Rule 4 of the North Carolina Rules of Civil Procedure. Ifa violation is not corrected within a reasonable period of time, as provided in the notification, the Stormwater Administrator may take appropriate action under this  paid or be subject to collection as a debt.  30    ordinance to correct and abate the violation and to ensure compliance with this  Ordinance. (D)  Extension of'Time  Aj person who receives a notice of violation and correction order, or the owner oft the land on which the violation occurs, may submit to the Stormwater Administratora written request for an extension of time for correction of the violation. On determining that the requesti includes enough information to show that the violation cannot be corrected within the specified time limit for reasons beyond the control oft the person requesting the extension, the Stormwater Administrator may extend the time limit as is reasonably necessary to allow timely correction of the violation, up to, but not exceeding 30 days. The Stormwater. Administrator may grant 15-day extensions in addition to the foregoing extension if the violation cannot be corrected within the permitted time due to circumstances beyond the control of the person violating this ordinance. The Stormwater Administrator may grant an extension only by written notice of extension. The notice of extension shall state the date prior to which correction must be made, after which the violator will be subject tot the penalties described in the notice of violation and correction order.  (E)  Enforcement After Time to Cotrect  After the time! has expired to correct a violation, including any extension(s) if authorized by the Stormwater Administrator, the Stormwater. Administrator shall determine if the violation is corrected. If the violation is not cotrected, the Stormwater Administrator may act to impose one or more of the remedies and  penalties authorized by this Ordinance. Emergency Enforcement  (F)  If delay in correcting a violation would seriously threaten the effective enforcement of this ordinance or pose an immediate danger to the public health, safety, Ot welfare, then the Stormwater Administrator may order the immediate cessation ofa violation. Any person sO ordered shall cease any violation immediately. The Stormwater Administrator may seek immediate enforcement, without prior written notice, through any remedy or penalty authorized by this article.  31    SECTION 6: DEFINITIONS 601 TERMS DEFINED  When used in this Ordinance, the following words and terms shall have the meaning set forth in this section, unless other provisions of this Ordinance specifically indicate  otherwise. Built-upon area (BUA)  That portion ofa development project that is covered by impervious or partially impervious surface including, but not limited to, buildings; pavement and gravel areas such as roads, parking lots, and paths; and recreation facilities such as tennis courts. "Built-upon area" does not include a wooden slatted deck, the water area ofas swimming pool, or pervious or partially pervious paving material to the extent that the paving material absorbs water Or  allows water to infiltrate through the paving material. The North Carolina Department of Environment Quality.  Department Design. Manual  The stormwater design manual approved for use: in Phase II jurisdictions by the Department and certified by this jurisdiction for the proper implementation of the requirements oft the federal Phase II stormwater program. All references herein to the Design Mamual are to the Any land-disturbing activity that increases the amount of buil-upon area or that otherwise  latest published edition or revision. Development Division  decreases the infiltration of precipitation into the soil.  The Division of Energy, Mineral and Land Resources in the Department.  High-density, project  Any project that exceeds the low-densily threshold for dwelling units per acre or built-upon ared. Any area where multiple separate and distinct construction or land-disturbing activities will occur under one plan. A plan is any announcement Or piece of documentation (including but not limited to a sign, public notice or hearing, sales pitch, advertisement, loan application, drawing, permit application, zoning request, or computer design) Or physical demarcation (including but not limited to boundary signs, lot stakes, or surveyor markings) indicating that For a project that is not located. within one-half mile of and draining to Shellfish Resource Waters: the project is a low -density project ifit has no more than two dwelling units per acre or twenty-four percent buill-upon ara (BUA) for all residential and non-residential A project with an overall density at or below the relevant low-density threshold, but containing areas with a density greater than the overall project density, may be considered low density as long as the project meets or exceeds the post-construction: model practices for  Larger common plan ofdevelopment or sale  construction activities may occur on a specific plot.  Low-density, project  development.  32    low-density projects and locates the higher density in upland areas and away from surface  waters and drainage ways to the maximum extent practicable.  1-yeat, 24-hour storm  The surface runoff resulting from a 24-hour rainfall of an intensity expected to be equaled or exceeded, on average, once: in 12 months and with a duration of24 hours. The legal or beneficial owner ofl land, including but not. limited to a mortgagee or vendee in possession, receiver, executor, trustee, or long-term or commercial lessee, or any other person or entity holding proprietary rights in the property or having legal power of management and control of the property. Owner" shall include long-term commercial tenants; management entities, such as those charged with Or engaged. in the management of properties for profit; and every person or entity having joint ownership of the property. A secured. lender noti in possession of the property does not constitute an owner, unless the secured lender is included within the meaning of "owner" under another description in this Any development on previously-developed land, other than a rebuilding activity that results in no net increase in buill-wpon area and provides equal or greater stormwater control than the Aj physical device designed to trap, settle out, Or filter pollutants from stormwater runoff; to alter or reduce stormwater runoff velocity, amount, timing, or other characteristics; to approximate the pre-development hydrology on a developed site; or to achieve any combination oft these goals. Structural BMP: includes physical practices such as constructed wetlands, vegetative practices, filter strips, grassed swales, and other methods installed or created on real property. "Structural BMP" is synonymous with "structural practice," "stormwater control facility," "stormwater control practice," "stormwater treatment practice," "stormwater management practice," "stormwater control measures," "structural stormwater treatment systems," and similar terms used: in this ordinance.  Owner  definition, such as a management entity.  Redevelopment ptevious development. Structural BMP  Substantial progress  For the purposes of determining whether sufficient progress has been made on an approved plan, one or more of the following construction activities toward the completion ofa site or subdivision plan shall occur: obtaining a grading permit and conducting grading activity on a continuous basis and not discontinued for more than thirty (30) days; or installation and approval of on-site infrastructure; or obtaining a building permit for the construction and approval ofa al building foundation. "Substantial progress" for purposes of determining whether an approved plan is null and void is not: necessarily the same as "substantial expenditures", used for determining vested rights pursuant to applicable law.  33    SECTION7AILLICIT DISCHARGES 701 TITLE AND PURPOSE  (A)  Title  This ordinance shall be officially known as "The Phase II Stormwater Illicit Discharge Detection and Elimination Ordinance"Itisi referred tol herein as "this ordinance."  (B)  Purpose  The purpose of this ordinanceis toj provide for the health, safety, and general welfare of the citizens of the Town Sawmills through the regulation of non-storm water discharges to the storm drainage system to the maximum extent practicable as required by federal and state law. This ordinance establishes methods for controlling the introduction of pollutants into the municipal separate storm sewer system (MS4) in order to comply with requirements of the National Pollutant Discharge Elimination System (NPDES) permit process. The  objectives of this ordinance are:  (1) To regulate the contribution of pollutants to the municipal separate storm sewer (2) Toj prohibit Illicit Connections and Discharges to the municipal separate storm (3) To establish legal authority to carty out all inspection, surveillance and monitoring procedures necessary to ensure compliance with this ordinance  system (MS4) by Stormwater discharges by any user  sewer system  702 AUTHORITY  The Town of Sawmills is authorized to adopt this ordinance pursuant to. North Carolina law, including but not limited to. Article 14, Section 5 of the Constitution ofNorth Carolina; North Carolina General Statutes 143-214.7 and rules promulgated by the Environmental Management Commission thereunder; Session Law 2004-163; Chapter 160A174,185.  703 DEFINITIONS  For the purposes of this section, the following shall mean: Best Management Practices (BMPs)  schedules of activities, prohibitions of practices, general good housekeeping practices, pollution prevention and educational practices, maintenance procedures, and other management practices to prevent or reduce the discharge of pollutants directly or indirectly to Stormwater, receiving waters, or Stormwater conveyance systems BMPs also include treatment practices, operating procedures and practices to control site runoff, spillage or leaks sludge or water disposal, or drainage from raw materials storage. The federal Water Pollution Control. Act (33 U.S.C.51251 et seq,), and any subsequent  Clean Water. Act amendments thereto.  34    Hazardous. Materials  Any material, including any substance, waste, or combination thereof, which because ofits quantity, concentration, or physical, chemical, or infectious characteristics may cause, or significantly contribute to, a substantial present or potential hazard to human health, safety, property, Or the environment when improperly treated, stored, transported disposed of, or  otherwise managed. Illegal Discharge Ilicit Connections  Any direct or indirect non-storm water discharge to the storm drain system.  An illicit connection is defined as either of the following:  Any drain or conveyance, whether on the surface or subsurface, which allows an illegal discharge to enter the storm drain system including but not limited to any conveyances which allow any non-storm water discharge including sewage, process wastewater, and wash water to enter the storm drain system and any connections to the storm drain system from indoort drains and sinks, regardless of whether said drain or connection had been previously allowed, permitted or approved by an authorized enforcement agency or, Any drain or conveyance connected from a commercial or industrial land use to the storm drain system, which has not been documented in plans, maps, or equivalent records and Activities subject to NPDES Industrial Permits as defined in 40 CFR, Section 122.26 (b)  approved by an authorized enforcement agency.  Industrial.Activiy (14).  Municipal Separate Storm Sewer System (MS4)  Pursuant to 40 CFR 122.26(b)(8) means a conveyance or system of conveyances (including roads with drainage systems. municipal streets catch basins, curbs, gutters, ditches, manmade channels, inlets, piped storm drains, pumping facilities, retention and detention basins, natural and human-made or altered drainage channels, reservoirs, and other drainage @)o Owned or operated by a town, city, county, district, association, or other public body (created by or pursuant to! State law) having jurisdiction over disposal ofs sewage, industrial wastes, Stormwater, or other wastes, that discharges to waters of the United States or waters  structures or storm drains):  oft the State.  (i) Designed or used for collecting or conveying Stormwater;  (in) Which is not a combined sewer; and  (iv) Which is not part ofal Publicly Owned Treatment Works (POTW), as defined in 40 CFR. National Pollutant Discharge Elimination System (NPDES) Storm Water A permit issued by thel North Carolina Department of Environment and Natural Resources, Division of Water Quality* that authorizes the discharge of pollutants to waters oft the State, whether the permit is applicable on an individual, group, Or general area-wide basis.  122.2  Discharge Permit  35    Non-Stormwater Discharge  Any discharge to the storm drain system that is not composed entirely of storm water.  Person  Means any individual, association, organization, partnership, firm, corporation or other entity recognized byl law and acting either as the owner or as the owner's agent. Anything that causes or contributes to pollution. Pollutants may include, but are not limited to: paints, varnishes, and solvents; oil and other automotive fluids; non-hazardous liquid and solid wastes and yard wastes; refuse, rubbish, garbage, litter, or other discarded or abandoned objects, ordinances, and accumulations, so that same may cause Or contribute to pollution; floatables; pesticides, herbicides, and fertilizers; hazardous substances and wastes; sewage, fecal coliform and pathogens; dissolved and particulate metals; animal wastes; wastes and. residues that result from constructing a building or structure; and noxious or offensive Any building, lot, parcel ofland, or portion of land whether improved or unimproved  Pollutant  matter of any kind. Premises  including adjacent sidewalks and parking strips.  Storm Water  Any surface flow, runoff, and drainage consisting entirely of water from any form of natural  precipitation, and resulting from such precipitation. Stormwater Pollution Prevention Plan  A document which describes the Best Management Practices and activities to be implemented by a person or business to identify sources of pollution or contamination ata site and the actions to eliminate or reduce pollutant discharges to Stormwater, Stormwater Conveyance Systems, and/or Receiving Waters to the Maximum Extent Practicable. Means water or other liquid, other than uncontaminated storm water, discharged from a *Ultimately the federal Environmental Protection Agency regulates the NPDES permit, but it has  Wastewater facility.  been delegated to the state for any non-tribal lands within North Carolina 704 ILLICIT DISCHARGES AND CONNECTIONS  (A)  Illicit Discharges  No person shall cause or allow the discharge, emission, disposal, pouring, or pumping directly or indirectly to any Stormwater conveyance, the waters of the State, or upon the land in manner and amount that the substance is likely to: reach a Stormwater conveyance or the waters of the State, any liquid, solid, gas, Or other substance, other than Stormwater; provided that non-Stormwater discharges associated with the following activities are allowed  and provided that they do not significantly impact water quality:  36    (1) Water line flushing, (2) Landscape irrigation, (3) Diverted stream flows, (4) Rising ground waters,  (5) Uncontaminated ground water infiltration (as definedat4 40CFR 35.2005(20)),  (6) Uncontaminated pumped ground water, (7) Discharges from potable water sources, (9) Flows from emergency firefighting, (10). Air conditioning condensation, (11) Irrigation water, (12) Springs,  (8) Foundation drains,  (13) Water from crawl space pumps, (14) Footing drains, (15) Lawn watering,  (16) Individual residential car washing Designated vehicle wash areas at multi-family residential complexes are not allowed if they connect, directly or indirectly, to the Stormwater System or surface waters. Charity Vehicle Washing performed by the same organization or at the same location on a routine basis (more than one time in a thirty-day  period): is not allowed under this article. (17) Flows from riparian habitats and wetlands, concentration, and chlorine generated. (19) Street wash water, and  (18) Dechlorinated swimming pool discharges "Salt Water" swimming pools cannot be directly discharged into the storm drain due to the salinity, bromoform/bromine  (20) Other non-Stormwater discharges for which a valid NPDES discharge permit has been approved and issued by the State of North Carolina, and if any such discharges to the municipal separate storm, The Town of Sawmills shall authorize sewer system. (21) Removal of Stormwater System blockages with Unmodified Potable Water. Prohibited substances include but are not limited to oil, anti-freeze, chemicals, animal waste,  paints, garbage, and litter.  37    (B)  Illicit Connections  (1) Connections to a Stormwater conveyance or Stormwater conveyance system that allows the discharge oft non-Stormwater, other than the exclusions described. in section (a) above, are unlawful. Including but notl limited to: prohibited washing machines or sanitary sewers, wash water from commercial vehicle washing or steam cleaning, and wastewater from septic (2) Where such connections exist in violation of this section and said connections were made prior to the adoption oft this provision or any other ordinance prohibiting such connections, the property owner or the person using said connection shall remove the connection within one year following the effective date of this ordinance, However, the one-year grace period shall not apply to connections which may result in the discharge of hazardous materials or other discharges which pose an immediate threat to health and safety, or are likely to result ini immediate injury and harm to real or personal property, natural resources, wildlife, or  systems.  habitat.  (3) Where it is determined that said connection:  i May result in the discharge ofl hazardous materials or may pose an immediate threat to health and safety, or is likely to result in immediate injury and harm to real or personal i. Was made in violation ofa any applicable regulation or ordinance, other than this The Stormwater Administrator/ Illicit Discharge Officer shall designate the time within which the connection shall be removed. in setting the time limit for compliance the Stormwater Administrator/ Ilicit Discharge Officer shall take into consideration:  property, natural resources, wildlife, or habitat, or  section:  iThe quantify and complexity of the work, ii. The consequences of delay, property, and V. The cost of remedying the damage. (C)  iv. The potential harm to the environment, to the public health, and to public and private  Spills  Spills or leaks of polluting substances released, discharged to, or having the potential to be released or discharged to the Stormwater conveyance system, shall be contained, controlled, collected, and properly disposed of.. All affected areas shall be restored to their pre-existing Persons in control of the polluting substances immediately prior to their release or discharge, and persons owning the property on which the substances were: released or discharged, shall immediately notify the Sawmills Fire Depattment of the release or discharge, as well as making any: required notifications under state and federal law, Notification shall not relieve any person of any expenses related to the restoration, loss damage, or any other liability which may bei incurred as a result of said spill or leak, nor shall such notification relieve any person from other liability which may be: imposed by State or other law.  condition.  38    (D)  Industrial ot Construction Activity Discharges  Any person subject to an industrial or construction activity NPDES storm water discharge permit shall comply with all provisions ofs such permit; Proof of compliance with said permit may be required in a form acceptable to the Town of Sawmills prior to the allowing of 705 RIGHT OF ENTRY/POWERS AND AUTHORITY FOR INSPECTION  discharges to the MS4.  (A)  Authority to Inspect and Monitor  The Stormwater Administrator/ IHicit Discharge Officer, bearing proper identification, may enter public or private properties at all: reasonable times to inspect, investigate, or monitor activities and conditions subject to this article. Persons occupying premises to bei inspected shall allow the Stormwater Administrator/ Illicit Discharge Officer ready access at all times to all parts of the premises to perform inspection, monitoring, records examination, copying, photography, video recording or other duties. Stormwater Administrator/ Illicit Discharge Officer shall have the right to set up on the Person's property such devices as are necessary to conduct sampling, inspection, compliance monitoring and/or metering operations. Where a Person has security measures in force that would: require identification and clearance before entry into the premises, the Person shall make arrangements with security personnel sot that, upon presentation of identification, personnel from Stormwater Administrator/ Illicit Discharge Officer will be permitted to enter and perform their specific responsiblities without delay. Denial of Stormwater. Administrator/ Illicit Discharge Officer access to the Person's premises or portions thereof shall be a violation of this article. Denial of access may also occur ifa Person fails to provide, without unreasonable delay, such facilities, equipment, or devices as are: reasonably necessary to permit Stormwater Administrator/ Illicit Discharge Officer personnel to perform their duties in a safe manner. Unreasonable delays may constitute denial of access. Any delay of more than five minutes may be considered  unreasonable. (B)  Search Warrants  To the extent permitted by law, Administrator/ Illicit Discharge Officer may seek the issuance ofa search warrant to determine compliance with this article.  (C)  Confidential Information  (1) To the extent permitted by applicable law and except as otherwise provided in this section, information and data on a Person obtained from reports, questionnaires, permit applications, permits, monitoring programs and inspections shall be available to the public or other government agencies without restriction, unless the Person specifically requests, and is able to demonstrate to the satisfaction of Administrator/ Illicit Discharge Officer, that the release of such information would divulge information, processes Or methods of production entitled to protection as trade secrets of the Person. Any such request must be asserted at the time of submission of the  information or data.  (2) To the extent permitted by applicable law, when requested by a Person furnishing a report, the portions ofai report that might disclose trade secrets  39    or secret processes shall not be made available for inspection by the public, but shall be made available upon request to governmental agencies for uses related to this article provided, however, that such portions ofa report shall be available for use by the State or any State agency in judicial review Or enforcement proceedings involving the Person furnishing the report.  (3) Documents that are not public records and the information set forth therein may be withheld and released only as provided by applicable law.  (D)  Obstruction  Noj person shall obstruct, hamper, or interfere with Administrator/ Ilicit Discharge Officer while carrying out official duties. Upon presentation of credentials by. Administrator/ Illicit Discharge Officer, necessary arrangements shall be made to allow immediate access onto premises or into an area protected by security measures. Any obstruction to the safe and easy access to property, a facility or enclosure on property, or to monitoring devices shall immediately be removed. Unreasonable delays in providing safe and reasonable access or  removing obstructions shall be a violation oft this article.  706 ENFORCEMENT  (A)  Notice of Violation  Whenever the Stormwater Administrator/ Ilicit Discharge Officer finds that a person has violated a prohibition or failed to meet a requirement of this Ordinance, the Stormwater Administrator/ Ilicit Discharge Officer may order compliance by written notice of violation to the responsible person. Such notice may require without limitation: (1) The performance of monitoring analyses, and reporting, (2) The elimination ofi illicit connections or discharges,  (3) That violating discharges, practices, or operations shall cease and desist, (4) The abatement or remediation ofs storm water pollution Or contamination hazards and the restoration of any affected property, and (5) Payment ofa fine to cover administrative and remediation costs, and (6) The implementation ofs source control or treatment! BMPs. Ifabatement ofa violation and/or restoration of affected property is required, the notice shall set forth a deadline within which such remediation or restoration must be completed. Said notice shall further advise that, should the violator fail to remediate or the Town ora contractor designated by the Stormwater Administrator/ Illicit Discharge Officer will perform the restore, within the established deadline, the work and the expense thereof shall  be charged to the violator. (B)  Violations Deemed a Public Nuisance  Illicit discharges and illicit connections which exist within the Sawmills Town Limits and  40    Extra-territorial Jurisdiction are hereby found, deemed, and declared to be dangerous or prejudiced to the public health or public safety and are found, deemed, and declared to be public nuisances and may be summarily abated or restored by the Town at the violator's expense, and/orac civil action to abate, enjoin, or otherwise compel the cessation ofs such  nuisance may be taken by the' Town.  41    AGENDA ITEM 9A  MEMO DATE: SUBJECT:  November 19,2019 Recognition: AMI Loan Resolution and Bank Contract  Discussion:  During the August 2019 meeting, Council agreed to partially fund the AMI water meter project with outside funding in the form ofal loan. Along with this memo is a resolution authorizing the Interim Town Manager, Karen Clontz, to enter into a contract with First Citizens Bank & Trust company, on behalf oft the Town of Sawmills, to purchase collateral with the total amount not to Also included with the resolution is the Installment Purchase Contract from First Citizens Bank & Trust Company. The contract has been reviewed, and approved, by Town Attorney Terry  exceed $400,000.00.  Taylor.  Recommendation:  Staff recommends Council approve the resolution and loan contract..    TOWN OF SAWMILLS  November 19,2019  Prepared by: Terry M. Taylor, Attorney atl Law  Town of Sawmills Caldwell County  ARESOLUTION. AUTHORIZING THE MAYOR AND INTERIM TOWN MANAGER TO EXECUTE AN INSTALLMENT PURCHASE CONTRACT toj purchase Automated Metering Infrastructure ("Collateral") with the total amount financed not to exceed Four Hundred Thousand  Dollars ($400.000.00)  WHEREAS, the' Town of Sawmills solicited and received a proposal from a financial institution, that being First Citizens Bank & Trust Company, to purchase the Collateral with the total amount  financed: not to exceed $400.000.00;  WHEREAS, First-Citizens Bank & Trust Company offers thel lowest fixed interest rate of2,45% NOW,THEREFORE, BEI IT RESOLVED by the Town Council oft the Town of Sawmills, that the Town Council authorizes the Mayor and Interim Town Manager to enter into a contract with First- Citizens Bank & Trust Company on behalf of the Town of Sawmills to finance a part of the funds necessary toj purchase Collateral with the total amount financed not to exceed $400.000.00.  foral Fifty-Nine (59) month term to provide part of the funds for this parchase;  BE IT FURTHER RESOLVED that the aforesaid contracts by and between the Town of Sawmills, vendors, and First-Citizens Bank & Trust Company, together with the amounts to be paid thereunder, be and the same are hereby designated as qualified tax-exempt obligations of the Town of Sawmills for purposes of Section 265(b)(3)ofthe) Internal Revenue Code of1986, as amended. BE IT FORTHIER RESOLVED that the Town Councii does not reasonably expect that the Purchaser (and any subordinate entities) will issue more than $10,000,000 in qualified tax-exempt  obligations pursuent to such Sections 265(b)(3)(ii) during the current calendar year.  (Signatures Appear on the. Following. Page)  251436.1    Adopted this the 19th day ofNovember, 2019.  TOWN OF SAWMILLS  By:  Johnnie Greene, Mayor  ATTEST: By:.  Julie A. Good, Clerk [Clerk Seal]  Approved as to Form:  Terry M. Taylor, Attorey Approved:  Karen Clontz, Interim Town Manager and Finance Officer  This Resolution is effective upon its adoption this Motion to adopt this Resolution was made by  day of  2019. The seconded by  and was passed by a vote of  to  251436.1    1s  Clerk of the Governing Body of  the Town of Sawmills, do hereby certify that the foregoing Resolution is a true and exact copy of the RESOLUTION AUTHORIZING THE MAYOR AND INTERIM TOWN MANAGER TO EXECUTE AN INSTALLMENT PURCHASE CONTRACT" duly adopted by the Governing Body of the Town of Sawmills at the regular meeting thereof duly called and held on  aquorum being present.  WITNESS my hand at day of  N. C., this the  2019.  Town Clerk  Date  251436,1    INCUMBENCY AND AUTHORIZATIONI CERTIFICATE  In connection with the execution and delivery by the TOWN OF SAWMILLS, a North Carolina municipal corporation (the "Borrower"), a political subdivision and body corporate and politic existing under the laws of the State ofNorth Carolina, of an Installment Purchase Contract (the "Contract") dated as of) December 4, 2019 between the Borrower and First-Citizens Bank & Trust Company, I do hereby certify that I am the duly appointed Clerk of the Borrower, and as such, I am familiar with the official  minutes and other pertinent records ofthat body.  Ifurther certifythat:  1. As oft the date of this certificate, the persons named below hold the positions listed opposite their 2, The Borrower is authorized by a resolution of the Borrower's governing body, passed in a called meeting held on November 19, 2019, at which a quorum was present and acting throughout, duly- to enter into the Contract and carry out the transactions and obligations of the Borrower evidenced therein, including the purchase of the personal property identified in the Contract and the creation of a security 3. The persons named below are authorized to execute and deliver on behalf of the Borrower the Contract and all other documents and instruments required or contemplated by the Contract, and to carry 4. Attached hereto is a true, complete and accurate copy of such Iresolution/lordinance) and the same has not been modified, amended, resoinded, terminated or otherwise revoked and is in full force and 5. The representations and warranties of the Borrower as set forth in the Contract are true and 6. The signatures set opposite the names and positions oft the persons named below are such persons'  names.  interest therein.  out the terms ofall ofthe foregoing.  effect.  correct as oft the date ofthis Certificate, true and authentic signatures.  Name Johnnie Greene Karen Clontz  Position  Signature  Mayor  Interim Town Manager  251518.1    IN WITNESS WHEREOF, II have duly executed this certificate and have affixed. to it the seal of the  Town of Sawmills on this 4" day ofDecember, 2019.  By:  Julie Good, Clerk to the Board  TOWN SEALI  PPAB 3502034v1  2    2019 INSTALLMENT) PURCHASE CONTRACT  Not] Exceeding $400,000 for a term of 59 months at a Bank-Qualified rateof2.45%  THIS INSTALLMENT PURCHASE CONTRACT,  "Contract"), by and between FIRST-CITIZENS BANK &  dated as of December4, 2019 (the corporate of the State of North  Town of Sawmills (the "Borrower"), a body politic and TRUST COMPANY (the "Bank") and  Carolina(he-Siate).  WITNESSETH:  body the: finançing; and  WHEREAS, the Borrower is a duly and validly created,  politic, duly created and existingunder and by virtue ofthe Constitution organized and existing public  and laws oft the State; and personal property to secure repayment of of the Borrower for the acquisition of for use by the Borrower; and  byc contracts that WHEREAS, create in the Borrower has the power to finance the acquisition of to acquire the WHEREAS, the Borrower has determined it is in the best interest  some or all of the property acquired a  interest security  Equipment (as hereinafter defined) and has  Borrower to enable the) Borrower to acquire thel Equipment; and requested the Bank advance funds to the  the  WHEREAS, the Bank has agreed to advance or make available funds Equipment and) has further agreed to make the Equipment available  WHEREAS, the Borrower will make  to acquire unencumbered ownership interests in the Payments (as hereinafter defined) to the Bank  (as hereinafter defined); and  Equipment from the Bank during the Term  Borrower has WHEREAS, in order to secure the obligations of the Borrower  agreed to grant the Bank a security interest in thel Equipment. NOW, THEREFORE, for and in  hereunder, the  covenants hereinafter contained, and other valuable consideration of the premises and of the which is hereby acknowledged, the parties hereto agree asi consideration, follows: the receipt and sufficiency of  ARTICLEI. DEFINITIONS  For purposes oft this Contract, the: following definitions will apply:  the Borrower which 1.1 certifies "Acceptance Certificate" means the final Disbursement Request Form  that the Borrower has acquired and accepted all oft the Equipment, executed by  Borrower tot the) 1.2 Bank under "Additional this Contract. Payments" means all amounts, other than Payments, due from the Contract, which 1.3 will be "Advancement" advanced means the aggregate amount as described on Exhibit B title has not been 1.4 purchased "Bank Equipment" means the portion of the Equipment for which  pay the Closing Costs  by the Bank to enable the Borrower to acquire the  ofthis Equipment and unencumbered  pursuant to the terms ofthis Contract. by the Borrower.    1.5 "Borrower Authorized Representative" means thei 1.6 "Borrower Equipment" means that portion  4if oft the Borrower in matters relating to this Contract, as evidenced individuals designated to act on uo thel Bank containing the specimen signature oft the authorized individuals. by a written certificate furnished  unencumbered title has been purchased by the Borrower.  of the Equipment for which  1.7 "Change in Deductibility" has the meaning set forth in Section 14.3.  1.8 "Closing Costs" means all items of expense  reimbursable to the Borrower relating to the financing of the costs, legal fees and charges and: financing and other  directly or indirectly payable by or processing costs, reproduction and binding  filing and recording costs, settlement costs, printing costs, word Equipment, including, but not limited to,  professional consultant fees.  1.9 "Dateo ofTaxability" has the meaning set: forth in Section 14.2. 1.10 "Determination ofTaxability" has the meaning set forth in Section 14.2. 1.11 "Disbursement Request Form" means the form attached to  C pursuant to which the Borrower requests all or a portion of the Advancement this Contract as Exhibit  Equipment ina accordance with Article 21 hereunder.  for the purchase of the  1.12 "Equipment" means the personal property described in ExhibitA oft this Contract.  Escrow. Agent. 1.13 "Escrow Agent" means First-Citizens Bank & Trust Company in its capacity as a portion ofthe Advancement is deposited by the Bank with the Escrow. pursuant to Section 2.3 in which all or  1.14 "Escrow Fund" means the account created  Agent,  1.15 "Event ofDefaule" has the meaning set forth in Section 12.1. 1.16 "Event ofNon-appropriation" has the meaning set forth in Section: 5.2(a). 1.17 "ElventofTaxabiliy" has the meaning set forth in Section 14.2.  1.18 "Net Proceeds," when used with  insurance required hereunder or proceeds ofa any condemnation respect to any proceeds from policies of thereof all expenses (including, without limitation, remaining after deducting from the gross proceeds  all or any portion of the Equipment, means the amount  award arising out of the condemnation of  such proceeds.  attorneys' fees and costs) incurred in the collection of  1.19 "Nonqualification Date" has the meaning set forth in Section 14.3. 1.20 "Payments" means those payments made the unencumbered ownership interests in and to the  undivided  by Borrower to the Bank to obtain Equipment as described in Article 4 of this  Contract and in the Payment Schedule,  and incorporated 1.21 herein "Payment Schedule" means the schedule of] Payments attached hereto as  by reference, which describes the Borrower's Payments due hereunder. ExhibitB  2    1.22 "Term" means the term of this Contract, which commences on the date first 1.23 "Uniform Commercial Code" means the Uniform Commercial Code as  written above, and terminates, subject to Section 5.2, on the payment by Borrower of all Payments due  under this Contract.  and codified in the laws oft the State.  adopted  ARTICLE2. ADVANCEMENT; ESCROW: FUND  2.1 At closing, the Bank shall () advance all or a portion of the Advancement for the  purpose of acquiring the Equipment, or paying Closing Costs, if any, pursuant to al Disbursement Form delivered by thel Borrower to the Bank, and (ii) deposit the remainder of the. Advancement, Request  thel Escrow Fund to be disbursed according to Section 2.2.  ifany, in  2.2 Requisition of Advancement Disbursement. If funds are deposited in the Escrow  Fund pursuant to Section 2.1, then to receive a disbursement from the Escrow Fund, a Borrower Authorized Representative shall prepare and execute a Disbursement Request Form and deliver Bank and Escrow Agent. The Borrower shall attach to the Disbursement Request Form such documents to the as may be required by the terms of the Disbursement Request Form to support the request of funds from any, the Escrow Agent shall establish and hold the Escrow Fund separate and apart from all other 2.1, funds and accounts of the Borrower. The portion of the Advancement, if any, deposited in the Escrow Fund constitutes the principal of the Escrow Fund. The Escrow. Agent shall invest and reinvest the Escrow Fund ina Bank depository account and any interest earned on the principal amount on Fund shall be accrued and retained in the Escrow Fund. Amounts on deposit in deposit the Escrow Fund are subject to a lien and charge ini favor of the Bank to secure the Borrower's obligation under this Contract. The Escrow Fund shall terminate on the earlier of (a) receipt by the Bank: and Escrow Acceptance Certificate from the Borrower, (b) written notice to the Escrow Agent from the Agent Bank default by the Borrower under the Contract, or (C) termination of the Contract. funds on Escrow Fund on termination of the Escrow Fund shall be applied first against Any the principal portion deposit ini of the the remaining Payments, then accrued but unpaid interest, and last to any other amounts due under  Escrow Fund.  the  2.3 Escrow Fund. Prior to a deposit in the Escrow Fund pursuant to Section if  in the Escrow  of an ofa this  Contract. Any balance remaining shall be distributed to the Borrower.  ARTICLE: 3. ACQUISITION OF EQUIPMENT 3.1 Acquisition of Equipment. The Borrower will acquire the  with  Advancement. To the extent that the Advancement is insufficient to complete the Equipment acquisition of the the Equipment, the Borrower is responsible for the balance of funds required or shall reduce the scope of the delivered and plaçed in good repair and working order and hereby authorizes the Bank to add to Exhibit the serial number of each item of Equipment so delivered and any other information necessary, in A, Bank's sole determination, to fully describe each item of Equipment. Any delay in delivery of the the Equipment does not affect the validity of this Contract or the Borrower's obligations hereunder. Borrower shall notify the Bank that all Equipment has been received and accepted by executing the Certificate. For purposes of laws governing taxation and conditional sales, title to the Acceptance deemed to bei in the Borrower, subject to immediate and automatic reversion to the Bank in Equipment accordance is with. Article 5 on default by the Borrower under this Contract, or failure to appropriate sufficient funds to make any Payment. Any such payments made against principal will be applied at the Bank's discretion and without adjustment to the payment amounts due under the Payment Schedule until the Contract is  Equipment needed.  3.2 Acceptance of Equipment. The Borrower shall accept the Equipment when and if  paid in full.  3    3.3 Equipment as Personal Property. The Equipment is, and shall at all times during 3.4 No Alteration. The Borrower shall not make any alterations, additions, or  the' Term be and remain, personal property. No portion of the Equipment will become fixtures within the improvements to the Equipment without the Bank's prior written consent, unless such alterations, additions or improvements may be removed without damage to the Equipment and without diminution of the subsequent value or utility of the Equipment. Any alterations, additions or improvements to the Equipment that the Bank reasonably deems cannot be removed without damage or diminution will be deemed permanently affixed to and for purposes of this Contract will  meaning of Article 9 oft the Uniform Commercial Code.  become part of the Equipment and subject to all rights of the Bank herein.  ARTICLE 4. REPAYMENT OF ADVANCEMENT  4.1 Amounts and Times ofl Payments. The Borrower shall repay the. Advancement as 4.2 Instaliment Payment. Each Payment is an installment payment, and on  provided in the Payment Schedule. Each Payment as represented on the Payment Schedule includes a principal component and ani interest component. Each Payment is payable without notice or demand. transmission of each Payment, unencumbered title to an undivided interest in the Equipment equal to that percentage of the Purchase Price represented by such Payment will transfer to the Borrower without the then outstanding principal balance shall continue to accrue at the rate indicated on the Payment Schedule until paid by the Borrower. AlI payments shall be applied first to any late payment charges or other amounts due hereunder that are neither interest nor principal, then to interest accrued to the date of bet made at the Bank's principal office or as may be otherwise directed by the! Bank or its assignee. Additional Payments is not subject to abatement or reduction of for any reason, including but not limited to, any defense, recoupment, setoff, counterclaim, or any claim (real or contingent) arising out of or related to the Equipment, The Borrower assumes the entire risk of loss and damage to the Equipment from any cause whatsoever, it being the intention of the parties that the Payments and. Additional Payments shall be made in all events unless the obligation to make such Payments and Additional Payments is terminated as its obligations under this Contract, then the Borrower may prepay the outstanding Payments designated as principal, in whole at a prepayment price equal to one hundred percent (100%) of the principal balance thereof, together with accrued interest to the date of prepayment. The Borrower shall provide 30 days' prior written notice to the Bank prior to exercising the option provided under this section. outstanding under this Contract, ail of the Bank's right, title and interest in and to the Equipment will be conveyed to the Borrower and, if requested by Borrower, the Bank shall deliver such documents to  further action by either party hereto.  4.3 Late Payments. On failure by the Borrower to make at timely Payment, interest on  payment, and thereafier to the unpaid principal balance.  4.4 PlaceofPayments All Payments required to be made to the Bank hereunder shall 4.5 No Abatement ofl Payments. The obligation of the Borrower to make Payments or  otherwise provided herein.  4.6 Optional Prepayment ofI Installment Payments. Ifthe Borrower is not in defauit of  4.7 Conveyance of Equipment. On payment by the Borrower of all amounts  evidence the transfer of the) Bank'sinterest: in thel Equipment tol Borrower.  ARTICLES. EVENT OF NON-AFPROPRIATION: PARTITION  4    5.1 Limited Obligation of the Borrower. Subject at all times to Section 5.2, it is the  Borrower's present intent, to make all Payments and Borrower reasonably belieyes that funds can be obtained sufficient to make all Payments. The Borrower agrees that funds, if any, which are legally available and appropriated for Payments and the performance of other abligations set forth int this Contract, will be applied to Payments and the performance of such obligations. NOTWITHSTANDING THE FOREGOING, THE FULL FAITH, CREDIT AND TAXING POWER OF THE BORROWER ARE NOT PLEDGED FOR. THE REPAYMENT OF THE ADVANCEMENT. THE PARTIES AGREE THAT NOTHING CONTAINED IN THIS CONTRACT IS INTENDED TO CREATE, OR. DOES CREATE, INDEBTEDNESS OF THE BORROWER WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL OR STATUTORY LIMITATION OR RESTRICTION AND SHALL NOT BE SOCONSTRUED.: NO PROVISION OF THIS CONTRACTIS TOBE CONSTRUED TO PLEDGE ORTO CREATE A LIEN ON ANY CLASS OR SOURCE OF BORROWER'S MONEYS OTHER THAN THE FUNDS THAT MAY BE HELD IN THE ESCROW FUND,NOR SHALL ANY PROVISION OF THIS CONTRACT RESTRICT THE FUTURE ISSUANCE OF ANY OF BORROWER'S BONDS OR OBLIGATIONS PAYABLE FROM. ANY CLASS OR SOURCE OF BORROWER'S MONEYS (EXCEPT TO THE EXTENT THIS CONTRACT RESTRICTS THE INCURRENCE OF ADDITIONAL  OBLIGATIONS SECURED BYTHE EQUIPMENT).  5.2 Non-approptiation.  (a)  All payment and performance obligations of the Borrower under this Contract  coming due during the fiscal years that follow the fiscal year in which the Term commences are subject to the availability and appropriation of funds by the governing body of the Borrower. If the governing body ofthe Borrower, on consideration oft thel budget submitted for approval by the chief financial officer ofthe Borrower, which budget shall include the amounts of all Payments and any Additional Payments to become due ini the fiscal year in which the budget is applicable, determines in its sole discretion not to include the amounts for the Payments and Additional Payments in its final approved budget, then an "Event ofNom-appropriation" is deemed to have occurred. The chief financial officer oft the Borrower shall promptly notify thel Bank in writing of the occurrence ofa anl Event ofNon-appropriation; accordance with subsection (c) below, without penalty or expense to Borrower of any kind whatsoever, as oft the last day of the fiscal year in which the governing body of the Borrower lawfully budgeted funds to make Payments, Borrower shall have no further obligation to Payments under this Contract, except as to those Payments funds which have been lawfully budgeted and appropriated and remain unpaid. No right of action or damages will accrue to the benefit of the Bank, or its assignee, as to that portion of Payments which remain unpaid as a consequence of an) Event ofNor-appropiation; the Borrower, temporarily waive the occurrence of an Event of! Non-appropriation and suspend termination of this Contract for the purpose of allowing reconsideration by the Borrower's governing body of its decision to not appropriate funds with which to pay Payments. Ifs such waiver is granted by Bank, then itis effective for thirty (30) days from the beginning of the fiscal year to which thel Event ofNon-appropriation applies (the "Waiver Period"). If the Borrower's governing body lawfully appropriates sufficient funds to make Payments prior to the expiration of the Waiver Period, then the Event of Non-appropriation is deemed to have been remedied, this Contract shall not terminate and the parties shall be restored to the status quo ante. If Borrower's goveming body fails to lawfully appropriate sufficient funds for Payments during the Waiver Period, then this Contract terminates on the first day following the end of the Waiver accordance with subsection (c), or following expiration of the Waiver Period in which such Event of1 Non-  (b) On the occurrence of an Event of Non-appropriation that is not waived in  (c) Bank may, ini its sole discretion, on request by the chief administrative officer of  Period;  (d) On the occurrence of an Event of Non-appropriation that is not waived in  5    -priation remains uncured, the Borrower agrees to peaceably surrender possession of the Bank -quipment as determined in accordance with subsection () below, to Bank or its assignee at such; designated by the Bank or its assignee immediately following the termination of this Contract place to this Section 5.2, and the Bank Equipment shall be packed at Borrower's cost for shipment at Borrower's pursuant cost in accordance with manufacturer specifications. If Borrower remains in possession of the Bank Equipment, or any portion thereof, more than five business days following termination of this Contract accordance with this Section 5,2, then Borrower will be deemed a lessee-at-will and shall toi the Bank in a fair and reasonable amount as rental for use of the Bank Equipment during such period (as pay determined  as  Bank ini its reasonable judgment);  by  (e) On termination of this Contract under this Article 5 and notwithstanding the  provisions of subsection (d), Bank is authorized, to the extent permitted by applicable sole discretion () take possession of the Bank Equipment, with or without legal action, law, (i). lease to, thel Bank Equipment, (in) collect all rents and profits therefrom, with or without taking possession of the Bank Equipment, and (v) after deducting ali costs of collection and administration expenses, apply the net rents and profits first to the payment of necessary maintenance and insurance costs, and then to Borrower's account and in reduction of the amounts due from Borrower to Bank hereunder, if any; and portion of the Equipment which is Borrower Equipment, shall immediately (and with no further action either party) be vested in the Borrower. The allocation of the Equipment percentage shall be based on by portion of Advancement spent on any piece of Equipment. To1 the extent that Equipment has been the due to casualty with other property, then the original proceeds shall follow to the replaçement replaced To the extent that Equipment has not been replaced after casualty, then said Equipment shall be property. the Borrower Equipment percentage. The Bank: is vested with broad authority to partition the allocated to and to take unencumbered title to such portion of the Equipment the Bank deems necessary to Equipment  elect in its  (f) On termination of this Contract under this Article 5, unencumbered title to that  interests. THE: BANK  satisfy its  ARTICLE6. REPRESENTATIONS AND WARRANTIES OF BORROWER AND 6.1 Representation and Warranties of the Borrower. The Borrower represents  warrants that each ofthe following is truei in all material: respects:  and by  (a) The Borrower is a public body corporate and politic  created  under the laws oft the State, and has all powers necessaryi to enter into thei transactions duly contemplated and existing this authorized, approved, executed and delivered by the Borrower, and thej performance by the Borrower validly ofits obligations under such documents has been approved and authorized, under all laws, regulations and procedures applicable to the Borrowet, including, but not limited to, compliance with all applicable meeting and bidding requirements, and the transactions contemplated by this Contract and public documents relating hereto constitute a public purpose for which public funds may be the Constitution and laws of the State, and, assuming due authorization, execution and expended pursuant to the Bank, constitute valid, legal and binding obligations of the Borrower, enforceable in delivery accordance hereof by their respective terms, except as enforcement thereof may be limited by general principles of bankruptcy, insolvency and other laws affecting the enforcement of creditors' rights generally; equity by to the entering into or performance by the Borrower of this Confract and the transactions authority respect  Contract and to carry out its obligations hereunder;  (b) This Contract, and all other documents relating hereto, have been duly and  all other or with  (c) No approval or consent is required from any governmental  with contemplated  hereby, or, if any such approval is required, it has been duly obtained;  6    (d) Since the date the Bank submitted its proposal to enter into this Contract with the (e) There is no action, suit, proceeding or investigation at law or in equity before or  Borrower, there has been no material change in the financial affairs of the Borrower which would affect its byany court, public board or body pending or, to the best of the Borrower's knowledge, against or affecting the Borrower that challenges or questions @) the validity or enforceability threatened, of this Contract or any other documents relating hereto, (i) the performance of the Borrower's hereunder, (in) the right of any member of the Borrower's governing body to hold office, the obligations ofthe proceedings by which the! Borrower's entry into this Contract has been authorized (iv) validity of the Borrower to acquire the Equipment or (vi) the authority of the Borrower to (v) the authority under the circumstances contemplated hereby, does not and will not in any material of Contract, or constitute on1 the part oft thel Borrower al breach of or default under any agreement or respect ofher conflict with, which the Borrower is a party, or any existing law, regulation, court order or consent decree instrument to which to  ability to make Payments and perform its other obligations under this Contract;  make Payments;  appropriate funds to  () The Borrower's entry into and compliance with the provisions this  Borrower is subject; by this Contract;  the  (g) There are no liens or encumbrances on the Equipment other than the lien created (h) The purchase oft the Equipment is essential to the proper, efficient and economical  operation of the Borrower and the delivery ofi its service and the Equipment will provide an essential use and permit the Borrower to carry out public functions that iti is authorized by law to perform; funds to pay all amounts due under this Contract within the Borrower's current legally fiscal has not terminated any lease, rental agreement, payment agreement, equipment year. acquisitions, lease- purchase agreement or installment purchase contract to which the Borrower has been a during the past 10 years as a result of insufficient funds being appropriated in ai fiscal year. party any 10 years, no event has occurred which would constitute an event of default under  () The Borrower has appropriated or otherwise has  available  The and Borrower sufficient at time During revenue the past bond this more than  or obligation issued by or on behalf ofthel Borrower; and  any debt,  () Ift this Contract is indicated as "Bank Qualified" on the first  then the Borrower designates its obligation hereunder as a "qualified tax-exempt page oft within Contract, meaning of Section 265(b)(3) oft the Internal Revenue Code of 1986, as amended ("Code"). obligation" The Borrower the () has not and does not expect to issue, directly or indirectly through subordinate $10,000,000 oft tax-exempt obligations (other than private activity bonds) during this calendar units, has not designated during this calendar year more than $10,000,000 of its obligations ofi its year subordinate and (ii) that each oft the 6.2 Representations and Warranties of the Bank. The Bank represents and warrants  units) as "qualified tax-exempt obligations."  (or  following is true in all material respects:  (a) The Bank has the power and authority to enter into this Contract;  (6) Neither the execution and delivery of this Contract nor the fulfillment or  compliance with the terms and conditions hereof or thereof, nor the consummation of the transactions of contemplated hereby or thereby, conflicts with or resuits in a breach of the terms, conditions or ofthe organizational documents of the Bank or any restriction or any agreement ori instrument provisions  Bank is now aj party or by which thel Bank is bound;  to which the  7    (c) The Bank is entering into this Contract as a vehicle for making a commercial loan  and without a present view to the distribution thereof (subject, nevertheless, to any requirement of law that the disposition of its property shall at all times be under its control) within the meaning of the federal  securities laws;  (d) The Bank is entering into this Contract solely for its own account and no other (e) The Bank is cognizant to the extent it deems necessary of the financial and  person now has any direct or indirect beneficial ownership or interest therein;  business conditions of the Borrower; the Bank has a net worth substantially in excess of the cost of this Contract and in the event it should unexpectedly incur the loss of the entire value of this Contract, such investment decision, and all information, books and records requested by it have been necessary furnished to the its Bank acknowiedges that, except for the financial information received by it and relied on it from it; the Borrower concerning the financial position oft the Borrower, no other representations have been by made toi it  loss would not materiallya adversely affect its financial condition; and  (f) The Bank has made such investigation as it deems  to make  as tot the financial condition of the Borrower.  ARTICLE7. COVENANTS OF THE: BORROWER  7.1 Care and Use. The Borrower shall use the Equipment in a careful and  manner, in compliance with all applicable laws and regulations, and, at its sole cost and expense, proper shall service, repair and maintain the Equipment sO as. to keep the Equipment in good condition, repair, appearance and working order for the purposes intended, ordinary wear and tear expected, and shall replace any part of the Equipment as may from time to time become worn out, lost, stolen, destroyed or damaged or unfit for use. The Borrower shall use the Equipment only to perform the Borrower's  governmental and proprietary functions.  7.2 Inspection. The Bank shall have the right on reasonable prior notice  Borrower to enter into and upon the premises where the Equipment is located to  the inspect Equipment and for  to the  observe its use during normal business hours.  7.3 Utilities. The Borrower shall pay, when due, all  inc connection wifh the Equipment. There shall be no abatement oft the) Payments charges on account utility services used body as a result of the Borrower's ownership, possession, or use of the Equipment or by as a any direct govemmental or indirect Equipment, and no such loss or damage and no defect or unfitness or obsolescence with respect to Equipment shall relieve the Borrower of its obligation to make the Payments. In the event damage to or condemnation of thel Equipment, the) Borrower shall either (a) continue to make of loss or due hereunder and repair or replace the Equipment, or (b) prepay in full the principal components the Payments of the outstanding Payments. Said repair or replacement of the Equipment shall meet with the satisfaction required of the Borrower or any payments required to be made by the Borrower Any if not performed or paid, be performed or paid by the Bank, and, in that event, the Bank shall may, be immediately timely  ofany such services.  ofinterruption  7.4 Taxes. The Borrower shall pay, when due, all taxes levied  result of the purchase oft the) Equipment by the Borrower.  7.5 RiskofLoss. The Borrower shall bear all risk of loss to and condemnation of the  the of the performance  Bank.  7.6 Performance by the Bank of the Borrower's Responsibilities.  8    reimbursed by the Borrower for such payments and for any costs and expenses, legal or otherwise, associated with the payments or other performance by the Bank, with interest thereon at aj per annum rate equal toi the Bank's then-announced "Prime Rate" in effect on the last business day of the calendar month preceding the payment (but not exceeding the maximum rate, ifany, permitted by applicable law). at such reasonable times as the Bank shall request current audited financial statements (including, without limitation, thel Borrower's annual budget as submitted or approved), and permit the Bank or its agents and representatives to inspect the Borrower's books and records and make extracts therefrom at its own expense during regular business hours and in a manner which will not disrupt the normal business routine of the Borrower. The Borrower represents and warrants to the Bank that all financial statements which have been delivered to the Bank: fairly and accurately reflect the Borrower's financial condition and there has been no material adyerse change in the Borrower's financial condition as reflected in the financial Contract and prior tot the disbursement of the. Advancement, the Borrower shall cause to bej provided to the  7.7 Financial Statements: Budget. The Borrower agrees that it will furnish the Bank  statements since the date thereof.  7.8 Other Responsiblities and Conditions. Simultancously with the execution of this (a) Certified copies of resolutions of the Borrower's goveming body authorizing the (b) A certificate of the Botrower, executed by any of the Borrower's authorized  Bank the following:  Borrower to enteri into this Contract and carry out its terms;  officers, in form and substance satisfactory to the Bank that certifies () thel Borrower is duly authorized to enter in the Contract; (i) the resolution or ordinance authorizing the Contract and the transactions contemplated thereunder is in full force and effect and has not been modified, repealed or amended in whole or in part; (ii) each of the Botrower's representations and warranties in the Contract are true and correct in all material respects as of the date of the certificate; (iv) the names, specimen signatures and satisfactory to the Bank, which opines that () the Borrower is a public body corporate and politic duly created and existing under the laws of the State, and has all powers necessary to enter into the Contract and toc carry out its obligations thereunder; (i) the Contract is duly authorized and a valid and enforceable obligation of the Borrower; (i) there is no pending or threatened litigation challenging (A) the Contract, (B) the Borrower's performance of its obligations thereunder, (C) the right of any member of the Borrower's governing body to hold office, (D) the validity of the proceedings by which the Borrower's entry into the Contract has been authorized, (E) the authority of the Borrower to acquire the Equipment or (F) the authority of the Borrower to appropriate funnds to make Payments; and (iv) the Borrower's entry into and compliance with the provisions of the Contract does not and will not in any material respect conflict with or constitute on the part oft the Borrower al breach of or default uder any agreement or other instrument to which the! Borrower is a party, or any existing law, regulation, court order or consent decree  positions ofthel Borrower. Authorized: Representatives;  (c) An Opinion Letter from counsel to the Borrower, in form and substance  to which thel Borrower is subject;  (d) A certificate or other proof of insurance on the Equipment, in a form consistent (e) Executed originals of any other documents and instruments required by this  withi the requirements of Article 9 and satisfactory to the Bank; and  Contract or as may bei requested by thel Bank.  ARTICLE8. SECIRTYINTEESTIIRS  9    8.1 Security Interest. To secure all of its obligations under this Contract, the  Borrower grants to the Bank a first and priority security interest in the Equipment, in any and all additions, accessions, repairs, replacements, substitutions, and modifications to the Equipment, and all proceeds ofail the foregoing, including any insurance proceeds. paid because of loss or damage to the Equipment. The Bank may file a financing statement with respect to the Equipment and this Contract without the Borrower's signature, Ift the Equipment is ori includes one or more motor vehicles, the ownership of which evidenced by a certificate of title, the Borrower shall cause the Bank's lien to be properly shown on each  certificate as a first lien security interest. Uniform Commercial Code.  8.2 Security Agreement. This Contract is a security agreement pursuant to the 8.3 No Other Liens. The Borrower shall not directly or indirectly create, or suffer to exist any lien, charge, security interest, encumbrance or claim on or with respect to the Equipment (except the security interest granted to the Bank). The Borrower shall promptly, at its oWn expense, take such action as may be necessary to duly discharge any such lien, security interest, or claim if the same shall arise at any time. The Borrower shall reimburse the Bank for any expense incurred by the Bank in order to discharge or remove any such lien, security interest, encumbrance ARTICLE9. INSURANCE; DAMAGE; CONDEMNATION; USE OF NET 9.1 Insurance. The Borrower shall obtain and maintain, at its expense, at all times  assume encumbrance orc claim. PROCEEDS  incur, charge,  until termination oft this Contract aj primary policy of insurance covering the Equipment and providing the insurance protection described in this Sectioni 9.1. The Borrower shall maintain fire, casualty, public Hability, property damage and theft insurance, and such other insurance as required by the Bank. The Borrower shall maintain such insurance in such amounts and with such deductibles, if any, as required the Bank from time to time. The Equipment shall be insured in an amount at least equal to its replacement by value. All policies of insurance required under this Article 9 shall be maintained with an insurance company or companies satisfactory to the Bank and shall provide that losses shall be payable to the Bank and thel Bank shall be named as an additional insured with: respect toz all suchi insurance. insurance or duplicates thereof or other evidence satisfactory to the Bank of such insurance coverage policies as required under this Section 9.1 for such Equipment. Each insurer shall agree by endorsement on the or policies issued by it that @) it will give 30 days' prior written notice to the Bank of the cancellation policy or material modification of such policy; and (i) the coverage of the Bank will not be terminated, reduced or affected in any manner regardiess of any breach or violation by the Borrower of declarations and conditions of such insurance. The Borrower hereby appoints the Bank as any the Borrower's warranties, attorney-in-fact () to make claim for, receive payment of, and execute and endorse all documents, checks or drafts received in payment under any insurance policies with respect to the Equipment; and () to make, adjust, settle or release any claims under or relating to such insurance. The Borrower agrees to cooperate fully in all accident insurance investigations, claims and litigation proceedings. The Borrower shall cooperate fully with the Bank in filing any proof of loss with respect to any insurance policy described above. The Borrower shall not voluntarily settle, or consent to the settlement of, any proceeding arising out ofanyi insurance claim with respect tot the) Equipment without the written consent of the Bank. foregoing policies of insurance, to adopt alternative risk management programs including, without limitation, to self-insure in whole or in part, individually or in connection with other units of local government or other institutions, to participate in programs of captive insurance companies, to participate  On acceptance of any Equipment, the Borrower shall deliver to the Bank the  of  The Bank may, but shall not be required, to permit the Borrower, in lieu of obtaining the  10    with other units of local government or other institutions ini mutual or other cooperative insurance or other risk management programs, to participate in State or federal insurance programs, to take State or federal laws now or hereafter in existence limiting liability, or to establish or participate advantage in other Borrower shall within five business days notify the Bank in writing of such loss Equipment, or in all material particulars, and within 15 business days thereafter notify the Bank in writing of the damage course ofaction, consistent with this Section 9.2, which it intends to take with respect to such lost or damaged Equipment. The Borrower shall within thirty (30) days, deposit any Net Proceeds received with respect to such damaged or lost Equipment in accordance with Section 9.4, ori if nol Net Proceeds shail:  of  altemnative risk: management programs.  9,2 Loss and Damage. In the event of damage or loss to any item of  (a) Place the damaged Equipment in good repair at Borrower's sole expense, the (b) Replace at Borrower's sole expense the lost or damaged Equipment with  adequacy ofsuch repairs being subject to. Bank's reasonable approval;  equipment having substantially similar specifications and of equal or greater value to the lost or damaged Equipment immediately prior to the time oft the loss or damage, such replacement equipment to be to Bank's reasonable approval, whereupon such replacement equipment shall be substituted on Exhibit subject A  hereto; or  (c) Pay Bank in cash all of the following: @) all amounts owed by Borrower to Bank  under this Contract in the then-current fiscal year, and (ii) following such payment in subsection ()(A) the remaining principal balance payable under this Contract or (B) the principal portion, accrued but unpaid interest, and any other amounts due under this Contract related to the lost or damaged Equipment. On Bank's receipt of such payment, Borrower shall be entitled to whatever interest Bank may have in the Equipment, or portion thereof, in its then condition and location, without warranty expressed ori implied. authority shail institute, or shall notify Borrower of any intent to institute, any action or proceeding for the taking of, or damages to, all or any part of the Equipment or any interest therein under the eminent domain, or if there shall be any damage to the Equipment due to governmental action, power but not of resulting in at taking of any portion oft the Equipment. Borrower shall file and prosecute its claims for such awards or payments in good faith and with due diligençe and cause the same to be collected and any over to Bank, and to the extent permitted by law hereby irrevocably authorizes and empowers Borrower's name or otherwise, to collect and receipt for any such award or payment and Bank, to file and prosecute such claims. Any condemnation award shall be applied in the same manner as insurance proceeds as ifthel Equipment was lost or damaged as further provided in Section 9.4. condemnation awards shall be deposited in the Escrow Fund or, if no Escrow Fund exists, policies a  9.3 Condemnation. Borrower shall immediately notify Bank if any governmental  m paid the  9.4 Use of Net Proceeds. The Net Proceeds of any insurance  or in separate  fund held by the Bank.  (a) Unless the Borrower exercises its option to prepay all or a portion of the  outstanding Payments in accordance with Section 9.4(b), all Net Proceeds shall be applied to the prompt repair or replacement of the Equipment sO condemned, lost or damaged. The Bank shall disburse Proceeds to the Borrower for such repair or replacement on receipt ofal Disbursement Request Form from Net  aBorrower Authorized Representative;  (b) The Borrower may apply the Net Proceeds to pay the principal, accrued but  unpaid interest, and any other amounts due under this Contract related to the Equipment so  lost or damaged;  condemned,  11    (C) Any balance of! Net Proceeds remaining following application in subsection (a) or  (b) shall be applied first against the principal portion of any remaining Payments due under this Contract, accrued but unpaid interest, and last to any other amounts due under this Contract. Any balance of Net Proceeds remaining shall be distributed to the Borrower. Any such payments made against principal will be applied at the Bank's discretion and without adjustments to the payment amounts due under the Payment  Schedule until the Contract is paid ini full.  ARTICLE 10. INDEMNIFICATION  To the extent permitted by applicable law, the Borrower hereby agxees to indemnify,  protect and save the Bank and the Escrow Agent harmless from all liability, obligations, losses, claims, damages, actions, suits, proceedings, costs and expenses, including attoreys' fees, arising out of, connected with, or resulting directiy or indirectly from the Equipment, including without  limitation, the possession, condition or use thereof.  The indemnification arising under this Section shali continue in full force and effect  notwithstanding the payment in full ofall obligations under this Contract.  ARTICLE 11. DISCLAIMER OF WARRANTIES  11.1 No Representations by the Bank. The Borrower acknowledges that it has  inspected the Equipment and found the Equipment to be satisfactory and acknowledges and agrees thati it has selected the Equipment based upon its own judgment and disclaims any reliance upon any statements REPRESENTATIONS, EXPRESS OR IMPLIED, AS TO THE CONDITION, MERCHANTABITY OR FITNESS FOR. A PARTICULAR PURPOSE OF THE EQUIPMENT OR ANY OTHER  orr representations: made by thel Bank with respect thereto.  11.2 Disclaimer by the Bank. THE BANK MAKES NO WARRANTIES OR  REPRESENTATION OR WARRANTY WITHRBSPECTTOTHE EQUIPMENT.  ARTICLE 12. DEFAULT. AND REMEDIES  12.1 Definifion of Event of Default. The Borrower is deemed to be in default under (a) The Borrower fails to make any Payment or fails to pay any Additional (b) The Borrower shall fail to perform or observe any term, condition or covenant of (C) Proceedings under any bankruptey, insolvency, reorganization or similar litigation  this Contract on thel happening ofany oft the following events (each, an "Event ofDefault"):  Payment when due (provided, however, that an Event of Non-appropriation is not an Event of Defanit  under this Contract); or  this Contract or shall breach any warranty by thel Borrower herein or therein contained; or  shall be instituted by or against the Borrower, or a receiver, custodian or similar officer shall be appointed for the Borrower or any ofi its property, and such proceedings or appointments shall not be vacated or fully other document executed or delivered in connection herewith is found to be incorrect or misleading in any  stayed after thei institution or occurrence thereof; or  (d) Any warranty, representation or statement made by the Borrower herein or in any (e) An attachment, levy or exeçution of a security interest or lien is levied upon or  material respect on the date made; or against thel Equipment.  12    12.2 Remedies on Default. Upon the occurrence of any Event of Default, the Bank (a) Subject to Article 5, declare the entire principal amount of the Payments and all (b) Proceed by appropriate court action to enforce performance by the Borrower of (c) Exercise all the rights and remedies at law or in equity, including those  may exercise any one or more of the following remedies as the Bank in its sole discretion shall elect: accrued interest and other charges immediately due and payable without notice or demand to the  Borrower;  the applicable covenants oft this Contract or to recover for the breach thereof;  remedies of a secured party or creditor under the Uniform Commercial Code and the general laws rights of and State with respect tot the enforcement oft the security interest granted or reserved hereunder; and the Bank Equipment and use, operate, lease or hold all or any part of the Bank discretion. If Borrower remains in possession of the Bank Equipment or any portion Equipment thereof, more than sole five business days following termination of the Contract in accordance with this subsection Borrower is deemed al lessee-at-will and will pay to thel Bank a fair and reasonable amount as rental (d), the use oft the Bank Equipment during such period, as determined by the) Bank.  the  (d) Terminate this Contract and give notice toi thel Borrower to surrender possession of  in its for the  12.3 Further Remedies. All remedies of thel Bank are cumulative and may be exercised  concurrently or separately. The exercise of any one remedy shall not be deemed an election of such remedy or preclude the exercise of any other remedy. The Borrower agrees to pay to the Bank all court costs and reasonable attorney fees incurred by Bank in enforcing the Bank's rights and remedies under Borrower under the provisions of this Contract, the Borrower agrees, subject to the limitations by and provisions of State law, that it will pay on demand to the Bank, the reasonable costs and expenses, including attorneys' fees, incurred by the Bank in the collection of Payments and Additional the enforcement ofperformance or observation ofa any obligation or agreement by the Borrower. Payments or  Contract.  this  12.4 Agreement to Pay Attorneys' Fees and Expenses. In the event ofa default the  ARTICLE 13. ASSIGNMENT  13.1 Assignment by the Borrower. The Borrower shall not sell, assign,  pledge or otherwise encumber or suffer a lien or encumbrance upon or against any lease, interest sublease, in the  Equipment or this Confract (except for the lien and security interest of the Bank  without therein) the time,  Bank's prior written consent.  13.2 Assignment by the Bank. The Bank may, at any time and from time to  assign all or any part of its interest in the Equipment, this Contract, including without Bank's righis to receive the Payments and any Additional Payments due and to become due limitation, hereunder. the Any assignment made by the Bank or any subsequent assignee shall not purport to interest or rights than those held by the Bank pursuant to this Contract. The Bank or convey its any greater assign or reassign either this entire Contract or a partial interest herein. All assignments assignees thel Bank shall may be subject to the conditions set forth below. After the Bank gives the notice described by below to the Borrower, the Borrower shall thereafter make all payments in accordance with the notice to  named therein.  the assignee  (a) The Bank shall send written notice of the assignment and its effective  Borrower before it makes the assignment. Such notification shall be forwarded to the Borrower date at to least the  13    30 days before the effective date oft the assignment. The notification shall include an executed copy of the assignment documents, shall specify the assignee's name and address, and shall provide the Borrower with instructions for making payments after the effective date oft the assignment. The requirement of 30 days' anyone other than the Bank until the notification specified in subsection (a) is received by the Borrower or until the effective date of the assignment, whichever is later. Should the Borrower incorrectly make Payments or Additional Payments to the! Bank after the conditions specified in the preceding sentence are related documents that are reasonably necessary to protect the security interest ini the Equipment or in this Contract, and to maintain those security interests in perfected form. If so requested, the acknowiedgment complete and accurate record of all assignments and other transfers in form and substance necessary to comply with Section 149(a) of the Internal Revenue Code. On receipt of notice of assignment from the Bank as described in Section 13.2(a), Borrower shail record the assignment in Borrower's "book entry system" as that term is defined in Section 149(a) of the Code. This Contract, or any interest herein, is not part ofi its interest in the Escrow Fund and its duties as Escrow Agent in connection with an assignment by  notice may be waived: in writing by the Borrower;  (b) The Borrower shail not be obligated to make Payments or. Additional Payments to  met, the Bank shall return those payments to the Borrower; and  (c) The Borrower shall execute, at the Bank's request, notice of assignment and other  shall in no way be deemed neçessary to make the assignment effective.  13.3 Book-Entry System. During the term of this Contract, Borrower shall keep a  subject to assignment through a public offering.  13.4 Escrow Fund Assignment by the Bank. The Bank may freely assign all or any  thel Bank ofthis Contract.  ARTICLE 14. TAX COVENANTS  14.1 Intent of Parties. Ifthe Contract is designated as "tax-exemp!" as indicated on the  first page hereof, it is the intention of the parties hereto that the interest portion of the Payments paid by the Borrower to the Bank: under this Contract are to be tax-exempt under Section 103 of the Internal Revenue Code. Borrower acknowledges that the continued exclusion of the interest component of the Payment from the Bank's gross income for federal income tax purposes depend in part, on the Borrower's compliance with certain provisions and requirements of the Internal Revenue Code of 1986, as amended (the "Code"), and Treasury Regulations promulgated thereunder. To that end, the Borrower covenants that it will comply with all requirements of the Code that must be satisfied subsequent to the execution of this Contract so that the interest component of each Payment is and remains excludable from gross income for federal income tax purposes, and further, specifically covenants as follows: would cause this Contract tol be an' "arbitrage bond" within the meaning of Section 148 of the Code; the Borrower and no use shall be made of the proceeds or of the Equipment, directly or indirectly, which would cause this Contract tol be a "private activity bond" within the meaning of Section 141 ofthe Code; guaranteed, in whole or in part, by the United States or any agency or instrumentality thereof, and  (a) The Borrower will make no use of the Advancement (the Proceeds") which (b) The Equipment shall be used exclusively for essential governmental purposes of (C) No part of the payment of principal or interest under this Contract is or shall be  14    (d) The Borrower shall timely file such reports and information as required the 14.2 Determination or Event of Taxability. If the Contract is designated as "Bank  Code, including a Form 8038-G or 8038-GC, or other comparable forms, as  and shall by furnish  the Bank copies ofs such filings.  applicable,  Qualified" on the first page hereof, then if at any time there is a Determination of Taxability or Event of Taxability, as hereinafter defined, the interest rate under this Contract, from and after the Date of Taxability, as hereinafter defined, shall increase by a factor of1.50. Ifi the Contract is designated as "Non- Bank Qualified" ont the: first page hereof, then ifa at any time therei is al Determination ofTaxability or Event  ofTaxability, thei interest rate under this Contract, from and after the Date of  shall increase bya pay to or income  factor of1.30.  Taxability,  In either case, on a Determination of Taxability or Event of Taxability, the Borrower shall thel Bank all amounts, ifany, which may be necessary to reimburse the Bank for any interest, other charges assessed by the Internal Revenue Service and by any State tax department against penalties the Bank by reason of the Bank's failure to include the interest portion of the Payments in its income tax purposes. Payment amounts under this Contract will be increased as a result gross of the increased for interest rate and additional interest as a result of said rate increase on all previous to the Bank upon demand therefor. The Borrower shall pay to the Bank the above-mentioned Payments shall alternative be paid rate of interest notwithstanding any transfer by the. Bank or payment or prepayment the An "Event of Taxability" shall mean any event, occurrence or situation, or failure to act, by the Borrower, the effect of which is to cause the interest resulting of the an action, includible in the gross income of the Bank for federal income tax. portion Taxability" shall mean a determination that the interest portion of the purposes. Payments A is "Determination included income of the Bank for federal income tax purposes, which determination shall be deemed to in gross made upon the occurrence of the earlier of the following: (a) the date on which the Bank is advised have been in writing by the Internal Revenue Service that, as a consequence of an action, or failure to act, the Borrower, the interest portion of the Payments (hereinafter called "Interest") is included income of the Bank for federal income tax purposes; (b) the date on which the Borrower receives in the gross from the Bank that the Bank has been advised () in writing that the Internal Revenue. Service has issued notice statutory notice of deficiency or similar notice to the) Bank which asserts, in the Bank is included in the gross income of the Bank for federal income tax effect, action, or failure to act, by the Borrower, or (ii) by an opinion of counsel purposes, as the a result of an Borrower) received by the Bank which concludes, in effect, that Interest is included (approved in the by Bank and thel Bank for federal income tax purposes as a result of an action, or failure to act, the gross income of day on which thel Borrower is advised in writing by thel Intemal Revenue Service that by there Borrower; has (c) the aj public or private ruling of the Internal Revenue Service that the Interest is included in the been issued of the Bank for federal income tax purposes as a result of an action, or failure to act, the gross income (d) the day on which the Borrower is advised in writing by counsel to the Bank that a by final Borrower; or from which no further right of appeal exists, has been made by a court of United States of America in a proceeding with respect to which the Borrower competent has been jurisdiction in the and an opportunity to participate and defend that the Interest is included int the for federal income tax purposes, as ai result ofa an action, or failure to act, by the Borrower. gross The "Date of Taxability" shall mean the first date on which Interest is  to the date such Determination of Taxability was made.  by Borrower prior from Payments to be  of by a received by  that Interest  determination, given income written notice of the Bank included in the gross on Qualified" the first  income of the Bank for federal income tax  Determination  purposes as a result of an Event of Taxability or a  ofTaxability.  14.3 Bank Qualification. Ifthe Contract is designated as "Bank  page hereof and there is not an Event or Determination  ofTaxability, as defined above, then at any time  15    there is a Change in Deductibility, as hereinafter defined, the interest rate payable under this Contract shall increase, from and after the Nonqualification Date as hereinafter defined, by a factor of 1.15 times. A "Change in Deductibility" means any determination by the Internal Revenue Service or any court of competent jurisdiction that the obligation of the Borrower hereunder is not a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Internai Revenue Code as a result or as a consequence of () an action, or failure to act, by the Borrower or (ii) a breach of any representation or warranty made by the Borrower to the Bank relating to the status oft this Contract as a qualified tax-exempt obligation (including but not limited to the répresentations and warranties contained in Section 6.10) ofthis Contract). "Nonqualification Date" means that date that this Contract is determined not to be a "qualified tax-exempt obligation" as a result of a Change in the Bank on the Borrower's receipt of any oral or written notice or information from any source whatsoever to the effect that an Event of Taxability or a Determination of Taxability or a  Deductibility.  14.4 Duty tol Notify the Bank. The Borrower agrees to give prompt written notice to  Change in Deductibility has occurred,  ARTICLE 15. MISCELLANEOUS  15.1 Waiver. No covenant or condition of this Contract can be waived except by the  written consent of the Bank. Any failure of the Bank to require strict performance by the Borrower or any waiver by the Bank of any of the terms, covenants or conditions herein are not a waiver of any unenforceable by acourt of competent jurisdiction, suchr ruling shall not affect any other term or provision herein, except that fhe invalid or unenforceable provision and the other provisions in this Contract automatically shall be modified as minimaily as possible SO as to be valid and enforceable and to effectuate the intent of the parties, provided that such modification can be made while still preserving the intent of the parties, and the remaining terms and provisions, as modified, if modified, shall remain binding on the parties. Ini the event tbat no such modification can be made while still preserving the intent oft the parties hereto, then the invalid or unenforceable provision shall be stricken from this Contract, and the remaining terms, ifsufficient to constitute al binding contract, shall remain in full force and effect.  other breach ofi the same or any other term, covenant or condition! herein.  15.2 Severability. If any provision in this Contract is determined to be invalid or  15.3 Governing Law. This Contract shall be construed, interpreted and enforced 15.4 Notices. Any and all notices, requests, demands, and other communications given  in: accordance with thel laws of the State.  under or in connection with this Contract shall bei in writing and shall be deemed to have been given when the writing is delivered, if given or delivered by hand, overnight delivery service, or facsimile or electronic transmitter (with confirmed receipt), or three (3) days after being mailed, or on the day it Was actually received, whichever is earlier, if mailed by first class United States mail, postage prepaid,  to the mailing address, telecopy number or email addresses set forth below:  16    Ift to thel Bank, address to: First-Citizens Bank & Trust Company 1230: Main Street, MC994082 Columbia, SC 29201 Telephone for Overnight: 803-931-1721 Facsimile: 803-931-8648 Email: yaayenstsan Kfto the) Borrower, address to: Karen. Clontz, Interim Town Manager 4076 US Hwy. 321A Sawmills, NC 28630 Telephone for Overnight: (828) 396-7903 Facsimile: Email: clmitiopamailla.ce Attention: Finance Officer  Attention: Courtney Dunlap, Government Lending Coordinator  The Borrower or the Bank may, by notice given hereunder, designate any further or  different addresses or telecopy numbers to which subsequent demands, notices, approvais, consents, requests or other communications shall be sent or persons to whose attention the same shall be directed. The Bank also may give notice to the Borrower at any updated address for the Borrower of which the  Borrower gives the Bank informal notice which the Bank maintains ini its records.  15.5 Section Headings. All section headings contained herein are for convenience of 15.6 Entire Contract. This Contract, together with the exhibits and attachments hereto,  reference only and arei noti intended to define or limit the scope of any provision oft this Contract. which are incorporated herein by refexence, constitutes the entire Contract between the parties and this Contract shall not be modified, amended, altered or changed except by written agreement signed by the  parties.  15.7 Binding Effect. This Contract shall be binding upon and inure to the benefit oft the 15.8 Time. Time is of the essence ofthis Contract and each and all ofits provisions. 15.9 Execution in Couterparts. This Contract may be executed in any number of 15.10 Reliance oft the) Bank on) Document. The Bank may acti in reliance on any writing,  parties and their respective successors and assigns.  counterparts, each of which shail be an original and all of which shall constitute but one and the same instrument or signature which it, in good faifh, believes to be genumne and may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, Thel Bank is not liable in any manner for the sufficiency or correctness as to the form, manner of execution, or validity of any instrument or as to the identity, authority, or right ofa any person executing the same; and the Bank's duties hereunder shall be limited to the receipt of such moneys, instruments or other documents received byi it as  instrument.  thel Bank, and: for the disposition oft thes same in accordance herewith.  17    15.11 E-Verify. The Bank understands that "E-Verify" is a federal program operated by  the United States Department of Homeland Security and other federal agencies, or any successor or equivalent program used to verify the work authorization ofnewly hired employees pursuant to federal law in accordance with Section 64-25(5) of the General Statutes of the State, as amended. The Bank agrees to comply with Section 64-26 of the General Statutes of the State, as amended. The Bank will not use any delivery of this Contract constitutes the Bank's certification to the State Treasurer that, as of the date of execution and delivery, the Bank is not listed on the Final Divestment List created and maintained by the State Treasurer pursuant to the Iran Divestment Act of 2015, Chapter 143C-6A-1 et seq. of the General  subcontractors in connection with this Contract.  15.12 Iran Divestment Certification. The Bank acknowledges that the execution and  Statutes of the State.  REMAINDER OFI PAGE INTENTIONALLY. BLANK. SCNMAIUREPAGE/OLOR)  18    IN WITNESS WHEREOF, the parties hereto' have caused this Contract to be executed as oft the day  and year first above written. (SEALI  Town of Sawmills By: Name: Johnnie Greene Title:_ Mayor  ATTEST: By:. Name:_ Julie Good Title:_ Clerk  FIRST-CITIZENS BANK &' TRUST COMPANY,  as) Bank and Escrow. Agent By: Name: Steve Groth Title: Senior Vice! President  (FIGC approval is required)  OR (Pre-audit certification fIGCqpprova! not required) This instrument has been preaudited in the manner required by The Local Government Budget and  This Contract has been approved under the provisions of Section 160A-20 and Article 9, Chapter 25 of the General Statutes of  Fiscal Control. Act. By:  North Carolina, Secretary  Its: Karen Clontz, Finance Officer and Interim Town Manager  Local Govemment Commission  EOMITUEPACTPASTADeN, PURCHASECOMTRACT  19    EXHIBIT. A  DESCRIPTIONOEI EOUIPMENT  Contract Date: December 4, 2019 Borrower: Town of Sawmills Advancement: $400,000  Description and Serial Number (ifavailable).  Purchase Price  Department and Function ofl Equipment Purpose  or Location of  After Delivery Equipment  Town of Sawmils By:  Name: Karen Clontz Title: Interim Town Menager Date: December 4,2 2019  A-1    EXHIBIT A  AMI Technology Advanced Metering System to include roughly 2,250 Water Meters.    EXHIBITB PAYMENT SCHEDULE  Contract Date: December 4,2019 Borrower: Town ofs Sawmills Advancement $400,000 Interest Rate: 2.45%  Cash Flow Data- -Loans and Payments  Event 1 Loan 2 Paymant 3 Payment  Date 12/04/2019 11/04/2020 11/04/2024  Amount Number Period End Date  400,000.00 85,803.52 85,803.54 Interest 0.00 8,983.33 8,983.33 7,917.91 7,917.91 6,009.71 6,009.71 4,054.76 4,054.76 2,051.91 2,051.91  1 1  4 Annual 11/04/2023  TValue Amortization Schedule Normal, SOE3/360  Date Loan 12/04/2019 2019 Totals 1 11/04/2020 2020 Totais 2 11/04/2021 2021' Totals 31 11/04/2022 2022 Totals 4 11/04/2023 2023Totals 51 11/04/2024 2024Totals Grand' Totals  Payment 0.00 85,803.52 85,803.52 85,803.52 85,803.52 85,803.52 85,803.52 85,803.52 35,803.52 85,803.54 85,803.54  Principal 0.00 70,820.19 76,820.19 77,885.61 77,885.61 79,793.81 79,793.81 81,748.76 81,748.76 83,751.63 83,751.63  Balance 400,000.00 323,179.81 245,294.20 165,500.39 83,751.63 0.00  429,017.62 29,017:62 400,000.00  Town of Sawmills By:  Name: Karen Clontz Title: Interim Town Manager Date: December 4, 2019  B-1    EXHIBITC  DISBURSEMENTI REQUESTFORM  Date:  1. The amount of the requested disbursement to be paid to Town of Sawmills $ 2. The method of disbursement (limited to two draws per month):  First Citizens Bank Account Transfer to. Acct #:  Acct name:  Wire' Transfer Bank Name:  ABA#:  Credit Acct Name: Credit. Acct#:  Special Instructions:  3. Ab briefdescription oft the purpose of the disbursement:  4. The undersigned certifies as follows:  a. Payment of the disbursement for the purpose requested will not cause the undersigned to be in violation of any of terms of the 2019 Installment Purchase Contract dated December 4, b. The amounts requested to be disbursed were properly incurred in connection with the acquisition oft thel Equipment and were not subject ofa any previous request for disbursement. The Equipment for which the disbursement is requested has been finally  2019 (the' "Contract").  the  Borrower.  accepted by  d. No notice of any lien, right tol lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable under the Contract to any of the persons, firms or corporations named herein has been received, or if any notice of any such lien, attachment or claim has been received, such lien, attachment or claim has been released or discharged or will This disbursement contains no items representing payment on account of . No Event of Default is continuing under the Contract, and no event or condition is which, with notice or lapse oft time or both, would become an Event ofDefault. The Borrower has in place insurance on this portion of the Equipment that  be released or discharged upon payment of this disbursement. entitled to be retained on the date oft this requisition.  any percentage existing with the  insurance provisions oft the Contract.  complies  C-1    5. Attached hereto are the following: proof ofi insurance, bills, receipts, invoices, or other documents 6. Also attached hereto is a list of the Equipment to which this Disbursement Request applies, 7. Borrower agrees that the Equipment subject to this Disbursement Request shall be added to the Description of Equipment List (Bxhibit A to the Contract) without further notice to or request by Borrower acknowledges that the delivery and any required installation oft thel Equipment subject to this Disbursement Request has been or will be completed in accordance with the terms of the Contract, andi that such Equipment has been or will be inspected and accepted by Borrower on (check if the following sentence is true): Acceptance Certificate. The items of Equipment subject to this Disbursement Request represent the final items of the Equipment to be accepted by  evidencing the amounts and purposes for which the disbursement is requested.  including descriptions, quantities and serial numbers.  Borrower.  8.  (date).  Borrower. The Borrower has acquired and accepted all oft thel Equipment.  Send Completed Form and Attachments to: courineydmlap@fistcitizens.com OR mail to: Courtney) Dunlap, MC994082 Government Lending Coordinator First-Citizens Bank & Trust Company 1230 Main Street, Columbia, SC 29201 OR Fax: 803.931.8648  By: Title: Date:  Original Loan Amount: $400,000  File Lien Holder (Title) and Certificate Holder & Loss Payee (Certificate of Insurance) as follows:  First-Citizens Bank & Trust Company POI Box 26592-DAC20 Raleigh, NC27611  C-2    YOUNG,  MORPHIS, BACH & TAYLOR,LLP  ATTORNEYS ATLAW 858 SECOND STREET NE, SUITE: 200 (28601) POST OFFICEI DRAWER: 2428 HICKORY, NORTHO CAROLINA28603-428 www.hickoryiaw.com  ÇHARLES R. YOUNG, SR. RETIRED) e THOMASCMORPHIS (1947-2009) WAYNEM.BACH TERRYM. TAYLOR + PAULE, CULPEPPER KEVINC. MCINTOSH JIMMY R. SUMMERLIN,R. TIMOTHY D.SWANSON JOHNW. CRONE,I J.STEVENI BRACKETT JORDANL. FAULKNER JAMES R. HAWES JESSICAN M,FRENCHV WATSON JARRYDA. DEBOER  TELEPHONE: 828.322,4663 FACSIMILB: 828.324.6410 MALHbansteniaven *CERTFIEDMEDATOR +BOARD CERTIFIED! SPECIALISTI IN REALPROPERTY LAW.RESIDENTIAL, BUSINESS, COMMERCIALE INDUSTRIAL TRANSACTIONS  November 20, 2019  First-Citizens Bank & Trust Company 1230 Main Street Columbia, South Carolina 29201  RE: Not Exceeding $400,000 Installment Purchase Contract between First-Citizens  Bank & Trust Company and Town of Sawmills (the "Contract"), a North Carolina  Municipal Corporation Ladies and Gentlemen:  Iam legal counsel for the Town of Sawmills (the "Borrower") and  above-referenced Contract, and all other documents to be executed am familiar with the connection therewith (together with the Contract, the "Transaction by the Borrower in examined the Transaction Documents, the resolution of the Borrower's Documents") I have on November 19, 2019 and authorizing the entry by the Borrower governing into the body Contract adopted "Resolution"), North Carolina General Statute $ 160A-20 as amended, and such (the documents, records, and provisions of law as I deem relevant and necessary as a other  rendering the following opinions:  basis for  On the basis oft the foregoing examination it is my opinion that: 1, The Borrower is a duly organized or created and validly  ofthe State of] North Carolina (the "State") and has all  and existing political subdivision  Constitution and laws of the State to enter into the Contract power and to authority perform necessary under the  the Contract.  its obligations under  2. The Transaction Documents have been duly authorized, Resolution and the Contract is a valid and legally  executed and delivered by the  enforceable according to its terms. The Borrower has binding obligation of the Borrower,  been modified, amended or  duly adopted the Resolution and itl has not  repealed.  3. The Borrower has designated the Contract as a within the meaning of Section 265(b)(3) of the Code, "qualified in  tax-exempt obligation"  251439,1  and, the case of certain financial    institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80% of that portion of such financial institutions' interest expense allocable to interest on the  Payments.  4. There is no pending or threatened litigation in any court or other tribunal, State or federal, of any nature, restraining, enjoining or challenging the execution and delivery of the Contract, the Borrower's performance of its obligations thereunder, the right of any member of the Borrower's governing body to hold office, the validity of the proceedings by which the Borrower's entry into the Contract has been authorized, the authority of the Borrower to acquire the Equipment, as defined in the Contract, or the authority of the Borrower to appropriate funds  to make Payments.  5. The Borrower's entry into and compliance with the provisions of the Contract does not and will not in any material respect conflict with or constitute on the part of the Borrower a breach of or default under any agreement or other instrument to which the Borrower is a party, or any existing law, regulation, court order or consent decree to which the Borrower is subject,  Very Truly Yours,  YOUNG, MORPHIS, BACH & TAYLOR, LLP  Terry M. Taylor Town Attorney  251439.1    AGENDA ITEM9B  MEMO DATE: SUBJECT:  November 19,2019 Financial Matters: Employee Longevity Pay  Discussion:  The Town of Sawmills has an employee longevity pay plan that has been historically paid out  during the first pay period in December. The pay schedule is as follows: 26 years and up 21-25 years 16-20 years 10-15 years 6-9 years 2-5 years 7months-1 year On months-6 months  $900.00 $750.00 $600.00 $450.00 $300.00 $150.00 $50.00 $ 0.00  There are sufficient funds in the budget to cover this expenditure.  Recommendation:  Staff recommends Council approve the issuance of longevity paychecks to Town employees paid  out the first pay period in December.    AGENDA ITEM 9C  MEMO DATE: SUBJECT:  November 19, 2019 Financial Matters: Request for Donation  Discussion:  The Town has received a request from the Caldwell County Veterans Honor Guard for a  donation in the amount of$100.00 (one hundred dollars). There are sufficient funds in the budget for this request.  Recommendation:  Staffr recommends Council discuss this matter and decide how they wish to proceed.    OFSAW  Town of Sawmills  Johnnie Greene, Mayor  Karen Clontz/Interim Town Administrator  Funding Request:  Name of Organization: (aldwel, Caents Vitziono  Phone  HMo buakds  #(8933948022  Permanent Address: DOB702  City:  State: AC Fed Tax ID #:  Zip Code:  Hudsm Contact Name:  08h38  Jimnuy Rador  Amount Requested: Date Funds Needed: Copplete descriptjon of project:  Amount needed for the Project: Project Begin/End Dates:  $I0c0  Fmmo or Miilaso Alebnthim  How will the funds be used?  How will this project benefit the community?  Official TownUseOnly  Date application received:_ Jola319 Date approved/denied (circle one): Date check written:  Date presented to Council: 1/14119  Amount approved:  Available balance in Governing Body Expense Acct: $100.00  Check #:  Amount:  This instrument has been preaudited ini the manner required by the Local Government Budget and Fiscal Control aaendlof    AGENDAITEM9D  MEMO DATE: SUBJECT:  November 19,2019 Financial Matters: Request for Donation  Discussion:  The Town has received a request from Caldwell County 4-H Saddle Club: for a donation in the  amount of one hundred dollars ($100.00).  There are sufficient funds in the budget for this request.  Recommendation:  Staffrecommends Council discuss this matter and decide how they wish to proceed.    OFSAWN  Johnnie Greene, Mayor  Town of Sawmills  Karen Clontz/Interim Town Administrator  Funding Request:  Name of Organization:  Phone  #E2-0-5324  Lallsl lonaty 4-H Sadelkells  Permanent. Address: 4504 Sasom-lls SehoelRl  City:  State: NC Fed Tax ID: #:  Zip Code:  bronk Folls  28630  Contact Name: Pli Denaig  2753/7322  Amount Requested: Date Funds Needed: Complete description of project:  Amount needed for the Project: Project Begin/End Dates:  #/00.0  How will the funds be used?  T fard Anaens ho Syost Hralk helopmat.  Howwill this project benefit the community? Krf wol Se tah leadersh sk-ls.  Official Town Use Only  Date application received: p/9 Date approved/denled (circle one):. Available balance in Governing Body Expense Acct: Date check written:  Date presented to Council:_ Amount approved:  H00.00  Check"#:  Amount:  This instrument has been preaudited ini the manner required byi the Local Government Budget and Fiscal Control Act.  dhpuer Clog    AGENDA ITEM 9E  MEMO DATE: SUBJECT:  November 19, 2019 Financial Matters: Request for Donation  Discussion:  The Town has received a request from Granite Falls Booster Club for a donation in the amount  of one hundred fifty dollars ($150.00).  There are sufficient funds in the budget for this request.  Recommendation:  Staff: recommends Council discuss this matter and decide how they wish to proceed.    OFSAWA  Town of Sawmills  Johnnie Greene, Mayor  Christopher Todd, Town Administrator  Funding Request:  Name of Organization:  Phone  Gantfd Boosters  #38/-4805  lul. OE State: NC Fed Tax ID#:  Permanent Address: a190 Atlao  City:  Zip Code:  Gatefzlo  08630  Contact Name:  Amount Requested: #(50 Date Funds Needed: ASAP Complete description of project:  Amount needed for the Project: Project Begin/End Dates:  fis0  How will the funds be used?:  To purehoae wifons Bnthe nddlloschd  Studost  How will this project benefit the community?: To help Marnta  Grald  Date application received:_ lohshg Date approved/denied (circle Date check written:  Official Town_UseOnly  Date presented to Council: Nhglig  Available balancei in Governing one): Body Expense Acct: 4100.00 Amount approved:  Check #:  Amount:  This instrument has been preaudited int the manner required by the Local Government Budget and Fiscal Control Act. daur dag    AGENDA ITEM9F  MEMO DATE: SUBJECT:  November 19, 2019 Financial Matters: Request for Donation  Discussion:  The Town has received a request from South Caldwell Boosters for a donation in the amount of  one. hundred fifty dollars ($150.00).  There are sufficient funds in the budget for this request.  Recommendation:  Staffrecommends Council discuss this matter and decide how they wish to proceed.    DESANE  Town of Sawmills  Johnnie Greene, Mayor  Christopher Todd, Town Administrator  Funding Request:  Name of Organization:  Phone  SacthGldde bosess #: 381-4805  Permanent Address: ga0s 3192Atho Orise  City:  State: C Fed Tax ID# #:  Zip Code:  Gtmte Fa00o  08630  Contact Name:  TercyCNoN  Amount Requested: Date Funds Needed: Complete description of project:  Amount needed for the Project: Project Begin/End Dates:  50 ASAP  #/so Footbalo frogran  How will the funds be used?:  To ad vertine oww i footbalQ Pogan  How will this project benefit the çommunity?:  To help o punchase Aasikumoord kepfeldo  ap  at Sowth Cdeos  Official Town Use Only  Date application received: 10/15h9 Date approved/denied (circle one): Date check written:  Date presented to Council: N/19h9  Amount approved: Amount:  Available balance in Governing Body Expense Acct: 4100-00  Check #:  Thisi instrument has been! preaudited int ther manner required byt the Local Government Budget and Fiscal Control Act.    AGENDAITEM9G  MEMO DATE: SUBJECT:  November 19, 2018 Financial Matters: Approve Auditors Contract for FY2019-2020  Discussion:  Enclosed with this memo is a contract from our current auditing firm Lowdermilk, Church & Co., L.L.P. The contract, in the amount of $11,350.00 (eleven thousand three hundred fifty  dollars), will cover the period ofJuly 1, 2019 to. June 30, 2020.  The amount of$11,350.00 (eleven thousand three hundred fifty dollars) includes the following:  Audit:  $7,375.00 $3,975.00  Preparation of annual financial statements:  This amount includes continual guidance, advice and directives throughout the year from the  auditors concerning any issues that may arise throughout the fiscal year.  Recommendation:  Staff: recommends Council approve a contract with Lowdermilk, Church & Co., L.L.P. in the amount of$11,350.00 (eleven thousand three hundred fifty dollars) and covering the period of  July 1,2019 to. June 30, 2020.    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 9/2019  The Governing Board Town Council of Primary Government Unit (or charter hoider) Town of Sawmills and Discretely Presented Component Unit (DPÇU) (if applicable) N/A  Primary Government Unit, together with DPCU (If applicable), hereinafter referred to as Govemmental Unit(s)  and Auditor Name Auditor Address  Lowdermilk Church and Co., LLP  121 North Sterling Street, Morganton, NC 28655  Hereinafter referred to as Auditor  for Fiscal Year Ending 06/30/20  Audit Report Due Date 10/31/20 Must be withint four months OfFYE  hereby agree as follows:  1. The Auditor shall audit all statements and disclosures required by U.S. generally accepted auditing standards (GAAS) and additional required legal statements and disclosures of all funds and/or divisions oft the Governmental Unit(s). The non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statements and an opinion shall be rendered in relation to (as applicable) the governmental activities, the business- type activities, the aggregate DPCUS, each major governmental and enterprise fund, and the aggregate remaining fund information (non-major government and enterprise funds, the internal service fund type, and the fiduciary fund 2. Atar minimum, the Auditor shall conduct his/her audit and render his/her report in accordance with GAAS. The Auditor shall perform the audit in açcordance with Government Auditing Standards if required by the State Single Audit Implementation Act, as codified in G.S. 159-34. If required by OMB Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Implementation Act, the Auditor shall perform a Single Audit. This audit and all associated audit documentation may be subject to review by Federal and State agencies in accordance with Federal and State laws, including the staffs of the Office of State Auditor (OSA) and the Local Government Commission (LGC). If the audit requires a federal single audit performed under the requirements found In Subpart F of the Uniform Guidance ($200.501), it is recommended that the Auditor and Governmental Unit(s) jointly agree, in advance of the execution of this contract, which parly is responsible for submission of the audit and the accompanying data collection form to the Federal Audit Clearinghouse as required under the Uniform If the audit and Auditor communication are found in this review to be substandard, the results of the review may be forwarded to the North Carolina State Board of CPA Examiners (NC State Board).  types).  Guidance (S200.512).  Page 1    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 9/2019  3. Ifane entity is determined to be a component of another government as defined by the group audit standards, the entity's auditor shall make a good faith effort to comply in a timely manner with the requests of 4. This contract contemplates an unmodified opinion being rendered. If during the process of conducting the audit, the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements of the unit, the Auditor shall contact the LGC staff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued. 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 would lead to a qualification should be fully 5. Ifthis audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 2018 revision, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor warrants that he/she has met the requirements for a peer review and continuing education as specified in Government Auditing Standards, The Auditor agrees to provide a copy of the most recent peer review report to the Governmental Unit(s) and the Secretary of the LGC prior to the execution of an audit contract. Subsequent submissions of the report are required only upon report expiration or upon auditor's receipt of an updated peer review report. If the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit(s) without first contacting the Secretary of the LGC for a If the audit engagement is not subject to Government Accounting Standards or if financial statements are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and fail to include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this 6. It is agreed that time is of the essence in this contract. All audits are to be performed and the report of audit submitted to LGC staff within four months of fiscal year end. Ifit becomes necessary to amend this due date or the audit fee, an amended contract along with a written explanation of the delay shall be submitted to 7. Itis agreed that GAAS include a review of the Governmental Unit's (Units') systems of internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor shall make a written report, which may or may not be a part of the written report of audit, to the Governing Board setting forth his/her findings, together with his recommendations for improvement. That written report shall include all matters defined as "significant deficiencies and material weaknesses" in AU-C 265 of the. AICPA Professional Standards (Clarified). The Auditor shall file a copy of that 8. All local government and public authority contracts for audit or audit-related work require the approval of the Secretary of the LGC. This includes annual or special audits, agreed upon procedures related to internal controls, bookkeeping or other assistance necessary to prepare the Governmental Unit's (Units') records for audit, financial statement preparation, any finance-related investigations, or any other audit- related work in the State of North Carolina. Approval is not required on contracts and invoices for system improvements and Invoices for services rendered under these contracts shall not be paid by the Governmental Unit(s) until the invoice has been approved by the Secretary of the LGC. (This also includes any progress billings.) [G.S. 159-34 and 115C-447] All invoices for Audit work shall be submitted in PDF format to the Secretary of the LGC for approval. The invoice marked 'approved 'with approval date shall be returnedto  the group auditor in accordance with AU-6 $600.41-S $600.42.  explained in an attachment to this contract.  peer review analysis that may result in additional contractual requirements.  contract or in an amendment.  the Secretary of the LGC for approval.  report with the Secretary of the LGC.  similar services of anon-auditing nature.  9.  Page 2    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 9/2019  the Auditor to present to the Governmental Unit(s) for payment. This paragraph is not applicable to 10. In consideration of the satisfactory performance of the provisions of this contract, the Governmental Unit(s) shall pay to the Auditor, upon approval by the Secretary of the LGC if required, the fee, which includes any costs the Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (federal and state grantor and oversight agencies or other organizations) as required under the Federal and State Single Audit Acts. This does not include fees for any pre-issuance reviews that may be required by the NC Association of CPAS (NCACPA) Peer Review Committee or NC 11. Ifthe Governmental Unit(s) has/have outstanding revenue bonds, the Auditor shall submit to LGC staff, either in the notes to the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the Auditor shall submit to LGC staff simultaneously with the Governmental Unit's (Units') audited financial statements any other bond compliance statements or additional reports required by the authorizing bond documents, unless otherwise specified in the 12. After completing the audit, the. Auditor shall submit to the Governing Board a written report of audit. This report shall include, but not be limited to, the following information: (a). Management's Discussion and Analysis, (b) the financial statements and notes of the Governmental Unit(s) and all of its component units prepared in accordance with GAAP,(c) supplementary information requested by the Governmental Unit(s) or required for full disclosure under the law, and (d) the Auditor's opinion on the material presented. The Auditor shall furnish the required number of copies of the report of audit to the Governing Board uponcompletion. 13. If the audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the LGC to have a pre-issuance review of its audit work, there shall be a statement in the engagement letter indicating the pre-issuance review requirement. There also shall be a statement that the Governmental Unit(s) shall not be billed for the pre-issuance review. The pre-issuance review shall be performed prior to the completed audit being submitted to LGC Staff. The pre-issuance review report shall 14. The Auditor shall submit the report of audit in PDF format to LGC Staff. For audits of units other than hospitals, the audit report should be submitted when (or prior to) submitting the final invoice for services rendered. The report of audit, as filed with the Secretary of the LGC, becomes a matter of public record for inspection, review and copy in the offiçes of the LGC by any interested parties. Any subsequent revisions to these reports shall be sent to the Secretary of the LGC along with an Audit Report Reissued Form (available on the Department of State Treasurer website). These audited financial statements, excluding the Auditors' opinion, may be used in the preparation of official statements for debt offerings by municipal bond rating services tot fulfill secondary market disclosure requirements of the Securities and Exchange Commission and for other lawful purposes of the Governmental Unit(s) without requiring consent of the Auditor. If the LGC Staff determines that corrections need to be made to the Governmental Unit's (Units') financial statements, those corrections shall be provided within three business days of notification unless another deadline is agreed to by 15. 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 required therefore. Upon approval bythe  contracts for audits of hospitals.  State Board of CPA Examiners (see Item 13).  bond documents.  accompany the audit report upon submission to LGC Staff.  LGC staff.  Page 3    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 9/2019  Secretary of the LGC, this contract may be modified or amended to include the increased time, compensation, 16. If an approved contract needs to be modified or amended for any reason, the change shall be made in writing, on the Amended LGC-205 contract form and pre-audited if the change includes a change in audit fee (pre-audit requirement does not apply to charter schools orl hospitals). This amended contract shall be completed in full, including a written explanation of the change, signed and dated by all original parties to the contract. It shall then be submitted to the Secretary of the LGC for approval. No change to the audit contract shall be effective unless approved by the Secretary of the LGC, the Governing Board, and the Auditor. 17. Acopy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit(s), shall be attached to this contract, and except for fees, work, and terms not related to audit services, shall be incorporated by reference as if fully set forth herein as part of this contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms oft this contract shall take precedence. Engagement letter terms that conflict with the contract are deemed to be void unless the conflicting terms of this contract are specifically deleted in Item 28 of this contract. Engagement letters containing 18. Special provisions should be limited. Please list any special provisions in an attachment. 19. As separate contract should not be made for each division to be audited or report to be submitted. Ifa DPCU is subject to the audit requirements detailed in the Local Government Budget and Fiscal Control Act and as separate audit report is issued, a separate audit contract is required. If a separate report is not to be issued and the DPCU is included in the primary government audit, the DPCU shall be named along with the parent government on: this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and 20. The contract shall be executed, pre-audited (pre-audit requirement does not apply to charter schools or hospitals), and physically signed by all parties including Governmental Unit(s) and the Auditor, then 21. The contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify the Governmental Unit and Auditor of contract approval by email. The audit should not be started before the 22. Retention of Client Records: Auditors are subject to the NC State Board of CPA Examiners' Retention of Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well as non-attest services. Clients and former clients should be familiar with the requirements of this rule prior to 23. This contract may be terminated at any time by mutual consent and agreement of the Governmental Unit(s) and the Auditor, provided that (a) the consent to terminate is in writing and signed by both parties, (b) the parties have agreed on the fee amount which shall be paid to the Auditor (if applicable), and (c) no termination 24. The Governmental Unit's (Units') failure or forbearance to enforce, or waiver of, any right or an event of breach or default on one occasion or instance shall not constitute the waiver of such right, breach or default on 25. There are no other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into in accordance with the procedure set out herein and approved by the  or both as may be agreed upon by the Governing Board and the Auditor.  indemnification clauses shall not be accepted by LGC Staff.  finance officer also shall be included on this contract. submitted in PDF format to the Secretary of the LGC.  contract is approved.  requesting the return of records.  shall be effective until approved in writing by the Secretary of the LGC.  any subsequent occasion or instance.  Secretary of the LGC.  Page 4    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 9/2019  26. E-Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of 27. For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct and Governmental Auditing Standards, 2018 Revision (as applicable). Financial statement preparation assistance shall be deemed a "significant threat" requiring the Auditor to apply safeguards sufficient to reduce the threat to an acceptable level. If the Auditor cannot reduce the threats to an acceptable level, the Auditor cannot complete the audit. If the Auditor is able to reduce the threats to an acceptable level, the documentation of this determination, including the safeguards applied, All non-attest service(s) being performed by the. Auditor that are necessary to perform the audit must be identified and included in this contract. The Governmental Unit shall designate an individual with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the services and accept responsibility for the results of the services performed. If the Auditor is able toi identify an individual with the appropriate SKE, s/he must document and include in the audit workpapers how he/she reached that conclusion. If the Auditor determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot perform both the non-attest service(s) and the audit. See "Fees for Audit Services" page of this contract to disclose the 28. Applicable to charter school contracts only: No indebtedness of any kind incurred or created by the charter school shall constitute an indebtedness of the State or its political subdivisions, and no indebtedness oft the charter school shall involve or be secured by the faith, credit, or taxing power of the State or its political 29. All of the above paragraphs are understood and shall apply to this contract, except the following  NCGS Chapter 64, Article 2.  must be included in the audit workpapers.  person identified as having the appropriate SKE for the Governmental Unit.  subdivisions.  numbered paragraphs shall be deleted (See Item 161 for clarification).  30. The process for submitting contracts, audit reports and invoices is subject to change. Auditors and units should use the submission process and instructions in effect at the time of submission. Refer to the N.C. Department of State Treasurer website at htps/www.nctreasurer.com/sgPages/AudlitForms-and- 31. All communications regarding audit contract requests for modification or official approvals will be sent 32. Modifications to the language and terms contained in this contract form (LGC-205) are notallowed.  Resources.aspx.  tot the email addresses provided on the signature pages that follow.  Page 5    LGC-205  CONTRACT TO AUDIT ACCOUNTS FEES FOR AUDIT SERVICES  Rev. 9/2019  1.F For all non-attest services, the Auditor shall adhere to the independençe rules of the AICPA Professional Code of Conduct (as applicable) and Governmental Auditing Standards,2018 Revision. Refer to Item 27 of this contract for specific requirements. The following information must be provided by the Auditor; contracts Financial statements were prepared by: Auditor Governmental Unit Third Party If applicable: Individual at Governmental Unit designated to have the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the non-attest services and accept responsibility for the  presented to the LGC without this information will be not be approved.  results of these services: Name: Karen Clontz  Title: Finance Officer  Email Address: donz@lowroswnlscon  2. Fees may not be included in this contract for work performed on Annual Financial Information Reports (AFIRS), Form 990s, or other services not associated with audit fees and costs. Such fees may be included in the engagement letter but may not be included in this contract or in any invoices requiring approval of the 3. Prior to submission ofi the completed audited financial report, applicable compliance reports and amended contract (if required) the Auditor may submit invoices for approval for services rendered, not to exceed 75% oft the total oft the stated fees below. If the current contracted fee is not fixed in total, invoices for services rendered may be approved for up to 75% of the prior year billings. Should the 75% cap provided below conflict with the cap calculated by LGC staff based on the prior year billings on file with the LGC, the LGC calculation prevails. All invoices for services rendered in an audit engagement as defined in 20 NCAC 3.0503 shall be submitted to the Commission for approval before any payment is made. Payment before approval is a violation of law. (This paragraph not applicable to contracts and invoices associated with audits  LGC. See Items 8 and 13 for details on other allowable and excluded fees.  of hospitals). Primary Government Unit Audit Fee  PRIMARY GOVERNMENT FEES Town of Sawmills $7,375 $ $3,975 $ $8,510 DPCU FEES (if applicable) N/A $ $ $ $ $ Page 6  Additional Fees Not Included in Audit Fee: Fee per Major Program Writing Financial Statements All Other Non-Attest Services 75% Cap for Interim Invoice Approval (not applicable to hospital contracts) Discretely Presented Component Unit Additional Fees Not Included in Audit Fee: Fee per Major Program Writing Financial Statements AIl Other Non-Attest Services 75% Cap for Interim Invoice Approval (not applicable to hospital contracts)  Audit Fee    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev, 9/2019  SIGNATURE PAGE AUDIT FIRM  Audit Firm*  Lowdermilk Church and Co., LLP James E Lowdermilk Date*  Authorized Firm Representative (typed or printed)*  Email Address* Hmt  10/24114  m.owdemikglowderilkehurchopa.com  GOVERNMENTAL UNIT  Governmental Unit* Town of Sawmills  Date Primary Government Unit Governing Board Approved Audit Contract* 0518.X9903150479. Mayor/Chairperson (typed or printed)*  Signature* Email Address greene@townotsawmils.com  Johnnie Greene Date  Chair of Audit Committee (typed or printed, or "NA") Signature  N/A Date  Email Address  GOVERNMENTAL UNIT - PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts.  This instrument. has been pre-audited in the manner, required by The Local Govemment Budget and Fiscal  Control Act or by the School Budget and Fiscal Control Act. Primary Governmental Unit Finance Officer* (lypedo orp printed Signature*  Karen Clontz  Date of Pre-Audit Certificate*  Email Address* dontz@lbowmobswmlis.com  Page7of8    LGC-205  CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE-I DPCU (complete only ifa applicable)  Rev. 9/2019  DISCRETELY PRESENTED COMPONENT UNIT  DPCU* N/A  Date DPCU Governing Board Approved Audit Contract* (Ref: G.S. 159-34(a) or G.S. 115C-447(a) DPCU Chairperson (typed or printed)*  Signature* Email Address*  Date*  Chair of Audit Committee (typed or printed, or "NA") Signature  Date  Email Address  DPCU - PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts.  This instrument has been pre-audited. in the manner: required by The Local Govemment Budget and Fiscal  Control. Act or by the School Budget and Fiscal Control Act. DPCU Finance Officer (typed or printed)* Date of Pre-Audit Certificate"  Signature* Email Address*  Remember to print this form, and obtain all required signatures prior to submission.  PRINT  Page 8of8    Lowdermilk Church & Co., L.L.P. Certified. Public Accountants  1211 N. Sterling Street Phone: (828)433-1226 Fax: (828).433-1230  Morganton, North Carolina 28655  Tol Honorable Mayor and Members oft the Town Council  October21,2019  Town of Sawmills Sawmills, North Carolina  We are pleased to confirm our understanding oft the services we are to provide Town of Sawmills for the year ended June 30, 2020. We will audit the: financial statements oft the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including thei related notes to the financial statements, which collectively comprise the basic financial statements ofTown of Sawmills as of and for the year ending June 30, 2020 Accounting standards generally accepted in the United States of Americaj provide for certain required supplementary information (RSI), such as Management's Discussion and Analysis (MD&A), tos supplement Town of Sawmills' basic financial statements, Such information, although not a part ofthe basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to Town of Sawmills' RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist ofinquiries of management regarding the methods ofp preparing the information and comparing thei information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit oft the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by U.S. generally accepted accounting principles, and will be subjected to certain limited procedures, but will not be  audited: 1) 2) 3)  Management's: Discussion and Analysis Budgetary Comparison Information Liability (Asset) and Schedule of Contributions  Local Government Employees' Retirement System Schedule ofthe Proportionate Share ofNet Pension We have also been engaged to report on supplementary information other than RSI that accompanies Town of Sawmills' financial statements. We will: subject the: following supplementary information to the auditing procedures applied in our audit oft the financial statements, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements, or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and we will provide an opinion on it in relation to the financial statements as a whole, in a report combined with our auditor's report on  the financial statements:  1) 2) 3)  Combining and Individual Fund Financial Statements  Budgetary Schedules Other Schedules    Audit Objectives  The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness oft the supplementary information referred to in the second paragraph when considered in relation tot the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General oft the United States, and will include tests ofthe accounting records ofTown of Sawmills and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit ofTown of Sawmills' financial statements. Our report will be addressed to the Town Council ofTown of Sawmills, We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions are other than unmodified, we will 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 issue reports, or we may withdraw from Ifcircumstances occur related to the condition ofyour records, the availability of sufficient, appropriate audit evidence, or the existence ofas significant risk ofmaterial misstatement ofthe financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, which in our professional, judgement, prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course ofaction permitted by professional standards, including declining to express an opinion or issue a report, We will also provide a report (that does not include an opinion) on internal control: related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a: material effect on the financial statements as required by Government Auditing Standards. The report on internal control, and on compliance and other matters, will include aj paragraph that states (1) that the purpose oft the report is solely to describe the scope oftesting of internal control and compliance, and the results oft that testing, and not to provide an opinion on the effectiveness oft the entity's internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If, during our audit, we become aware that' Town of Sawmills is subject to an audit requirement that is not encompassed in the terms ofthis engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards, and the standards for financial audits contained in Government Auditing Standards.  this engagement.  orv withdrawing from the engagement.  may not satisfy the relevant legal, regulatory, or contractual requirements.  Audit Procedures- General  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 oft transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2). fraudulent financial reporting, (3) misappropriation of assets, or (4)violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to  provide reasonable assurance of detecting abuse.    Because oft the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination ofa all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. 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 on the financial statements. However, we will inform the appropriate level of management ofa any material errors, any fraudulent financial reporting, or any misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and ofany material abuse that comes to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not Our procedures will include tests ofdocumentary evidence supporting the transactions recorded in the accounts, and may include tests ofthe physical existence ofinventories, and direct confirmation ofreceivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, 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: require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing  extend to later periods for which we are: not engaged as auditors.  standards.  Audit Procedures--Internal Control  Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant toj preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be Iess 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 Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards.  Audit Procedures- Compliance  As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests ofTown of Sawmills' compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit 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.  Other Services  We will also assist inj preparing the financial statements and related notes ofTown of Sawmills in conformity with U.S. generally accepted accounting principles based on information provided by you. We will also prepare the following based on information provided by you: AFIR, Data Collection Form and' Unit Data Input Worksheet. These nonaudit services do not constitute an audit under Government Auditing Standards, and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgement, reserve the right to refuse to perform any procedures  or take any action that could be construed as assuming management responsibilities.    Management Responsibilities  Management is responsible for designing, implementing, establishing, and maintaining effective internal controls, relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that managementi is reliable and the financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application ofaccounting principles, for the preparation and fair presentation oft the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness oft that information. You are also responsible for providing us with (1) access to alli information, ofwhich you are aware, that is relevant to the preparation and fair presentation ofthe financial statements, (2) additional information that we may request for the purpose oft the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written 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 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 affecting the government involving (1): management, (2) employees who have significant roles in internal control, and (3) others where fraud could have a material effect on the financial statements. Your responsibilities include informing us ofyour 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 government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions ofl laws, regulations, contracts or grant You are responsible for the preparation of the supplementary information, which we. have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains, and indicates that we. have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon OR make the audited financial statements readily available to users ofthe supplementary information no later than the date the supplementary information isi issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1)you are responsible for presentation of the supplementary information in accordance with GAAP; (2)you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods ofmeasurement or presentation have not changed from those used in the prior period (or, ifthey have changed, the reasons for such changes); and (4)you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining aj process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the. Audit Objectives section of this letter, This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies, You are also responsible forj providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions for the report and for the  provisions of contracts and grant agreements.  and in the aggregate, to the financial statements taken as a whole.  agreements, or abuse that we report.  timing and format for providing that information.    With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your. website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation Ietter our assistance with preparation oft the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; to evaluate the adequacy and results ofthose services; Inc connection with this engagement, we may communicate with you or others via email transmission. As emails can bei intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, ori may not be delivered to each oft the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for the interception or unintentional disclosure of emails transmitted by us in connection with the performance oft this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss ofrevenues or anticipated profits, or disclosure or communication of confidential or proprietary information.  consistency ofo other information in the electronic site with the original document.  and to acceptresponsibility for them.  Engagement Administration, Fees, and Other  We understand that your employees will prepare all cash, accounts receivable, or other confirmations and We will provide copies of our reports to the Town; however, management is responsible for distribution oft the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property ofLowdermilk Church & Co., L.L.P. and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request, and in a timely manner, to the Local Government Commission or its designee, ai federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes ofa quality review of the audit, to: resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. Ifrequested, access to such audit documentation will be provided under the supervision ofLowdermilk Church & Co, L.L.P. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the Local Government Commission. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit James E. Lowdermilk is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. To ensure that Lowdermilk Church & Co., L.L.P.'s independence is not impaired under the AICPA Code ofProfessional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel.  schedules we request and will locate any documents selected by us for testing.  other governmental agencies.  finding for guidance prior to destroying the audit documentation.    Our fee for these services will be at our standard hourly rates, plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $11,350. Our standard hourly rates vary according to the degree of responsibility involyed and the experience level ofthe personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended ifyour account becomes 30 days or more overdue and may not be resumed until your account is paid in full. Ifwe elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date oftermination. The above: fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. Ifsignificant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. We are required to inform you that we charge interest at a rate of18% per annum on all invoices over 30 days old. You: may request that wej perform additional services not addressed in this engagement letter. Ifthis occurs, we will communicate with you regarding the scope oft the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. Ini the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the Our audit engagement ends on delivery of our audit report. Any follow-up services that might be required will be as separate, new engagement. The terms and conditions oft that new engagement will be governed by a new, We are providing you with a copy of our 2018 external peer review report which accompanies this Ietter. We appreciate the opportunity to be ofs service to Town of Sawmills and believe this letter accurately summarizes the significant terms of our engagement. Ifyou have any questions, please let us know. Ifyou agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.  terms ofthis engagement letter.  specific engagement letter for that service.  Very truly yours,  - IK  James E. Lowdermilk Partner RESPONSE:  This letter correctly sets forth the understanding ofTown of Sawmills.  Management signature: Title: Date: Governance signature: Title: Date:    bc Bernard Robinson & Company, L.L.P.  Report on the Firm's System of Quality Control  October 30, 2018  To the Partners ofLowdermilk Church & Co.,LL.P. and the Peer Review Committee oft the North Carolina Association ofCertified Public Accountants  We have reviewed the system of quality control for the accounting and auditing practice ofLowdermilk Church & Co., L.L.P. (the firm) in effect for the year ended May 31, 2018. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board oft the. American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at wwwacpaotgpsummay: The summary also includes an explanation of1 how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review  rating.  Firm'sl Responsibility  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. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any.  Peer Reviewer's Responsibility compliance therewith based on our review. Required Selections and Considerations  Our responsibility is to express an opinion on the design oft the system of quality control and the firm's  Engagements selected for review included an engagement performed under Government Auditing As aj part of our peer review, we considered reviews by regulatory entities as communicated by the firm,  Standards, including a compliance audit under the Single Audit Act. ifapplicable, in determining the: nature and extent of our procedures.  1501 Highwoods Blvd., Ste. 300 (27410) PO. Box 79608 I Greensboro, NC: 27419 P: 336-294-4494 . F: 336-294-4495  brocpa.com    Lowdermilk Church & Co., L.L.P. October 30, 2018 Page 2 Opinion  In our opinion, the system of quality control for the accounting and auditing practice ofLowdermilk Church & Co., L.L.P. in effect for the year ended May 31,2018, 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 ai rating of pass, pass with deficiencyfies) or fail. Lowdermilk Church & Co., L.L.P. has received a peer review rating of pass,  Bunad Pokirsm Copeg EE BERNARD ROBINSON & COMPANY,LL.P.    AGENDA ITEM 11A  MEMO DATE: SUBJECT:  November 19, 2019 Updates: Code Enforcement Monthly Report  Discussion: the town. Recommendation: No Council action required.  The attached report shows the progress that Planner Hunter Nestor continues to make throughout