6119  The Smithfield' Town Council meti in Special Session on Thursday, March 11, 2021at6 6:30 pmi int the Council  Chambers oft the Smithfield' Town Hall, Mayor M. Andy Moore presided.  Councilmen Present: John Dunn, Mayor Pro-Tem Travis Scott, District3 Dr. David Barbour, District4 Stephen Rabil, At-Large Call to Order Mayor Moore calledt the meeting to order at6 6:34 pm. Approval of the Agenda Prior to approving the agenda, Town! Manager agenda: Fire Department, pick-up trucks.  Councilmen Absent Marlon! Lee, District1 David Stevens, District2 Roger Wood, At-Large  Administrative Staff Present Michael Scott, Town Manager John Blanton, Fire Chief Shannan Parrish, Town Clerk Greg Siler, Finance Director  Michael Scottr  that an additional business item be addedt tot the  requested  Councilman Barbour made a motion, seconded by Mayor Pro-Tem, to approve the agenda as amended.  Unanimously approved.  Public Hearing  1. Police Department Expansion Financing: In accordance with NCGS 160A-20, the Town of Smithfield must hold a public hearing to receive public comments concerning the financing of Councilman Barbour made a motion, seconded by Mayor Pro-Tem Dunn, to open the public hearing. Finance Director Greg Siler explained he received quotes from three banks for the financing of the Police Department Expansion Project. AF Request for Proposals was also sent to First Citizens Bank, but they chose not  the Police Department Expansion Project  Unanimously approved.  top participate. Bids received are as follows:  United Community 2.13% N/A N/A Fixed at $61,380 $136,134 $920,705  BB&T 2.480% $5,900 N/A Declining Payments Starting at $71,438 $150,795 $941,267  KS Bank 2.875% 16y year $0 N/A Fixed at $61,520 $200,233 $984,805  Rate Fees  Prepayment Penalty Annual Payment  Interest Paid  Total Repayment including fees  Mr. Siler explained that United Community Bank offered the lowest interest rate at2 2.13%. He explained there was ac change to the offer since the rate ist typically only honoredf for 45 days. Sincei it would be 52 days before closing, Mayor Moore questioned if Mr. Siler tried tor negotiate with the bank concerning thisf fee. Mr. Siler responded he had agreed tot those terms since the amountv was miniscule. Mayor Moore asked! Mr. Siler toi try to negotiate this fee with Mr. Siler explained thatt the term oft the loan was fifteen years. Should the Town carry the loan for the entire fifteen Councilman Scott questionedi ift the interestr rates wouldi increase or decrease ifthe Town choset to onlyf finance! half the loan amount. General Fundf fund balance could be used for the remainder oft the project. Mr. Siler responded he was uncertain ift thei interestr rate would change. Mr. Siler further stated the Town hadi the option ofr repaying the Mr. Siler explained there were two resolution that must be adopted byt the Council before it could be submitted to Mayor Moore asked ift there was anyone in attendance that wishedt to speak on the matter. There was no onei in  United Community Banko charged an additional $500t tol hold the 2.13% interest rate.  thel bank.  years, the amount ofi interest paid would be $136,634 including the $500f fee.  total debt offs sooner without penalty.  the Local Government Commission (LGC) for approval. attendance that wishedt tos speak ont the matter.    6120  Councilman Barbour made a motion, seconded by Councilman Rabil, to close the public hearing. Councilman Barbour made ar motion, seconded by Mayor Por-Tem Dunn, to adopt Resolution No. 676 (04-  Unanimously approved. 2021). Unanimously approved.  Town of Smithfield Resolution No. 676 (04-2021) Approving Financing Terms  WHEREAS: The Town of Smithfield ("Town") has previously determined to undertake a project for the financing a 3500 square foot addition to the police building, (the "Project), and the Finance Officer has now presented a proposal fort the financing of such Project. 1. The Town hereby determines to finance the Projects through United Community Banki in accordance with the proposal dated February 19, 2021. The amount financed shall not exceed $784,572, the annual interestr rate (int the absence ofdefaulto or changei int taxs status) shall note exceed 2.13%, and the financing term shall note exceed 15) years from closing. All financing contracts and all related documents for the closing of the financing (the "Financing Documents") shall be consistent with the foregoing terms. All officers and employees oft the Town are hereby authorized and directed to execute and deliver any Financing Documents, and to take alls such further action as they may consider necessary orc desirable, to carry out the financing oft the Projects as contemplated by the proposal and this resolution. The Financing Documents may include a Financing Agreement, Deed of Trust, UCCs, and/or al Project Fund Agreement as United Community Banki may request. 3. The Finance Director is hereby authorized and directed to hold executed copies of the Financing Documents until the conditions fort the delivery ofthe Financing Documents have been completed to such officer's satisfaction. The Finance Director is authorized to approve changes to any Financing Documents previously signed by Town officers or employees, provided that such changes shall not substantially alter the intent of such documents or certificates from the intente expressedi int thet forms executed by such officers. The Financing Documents shall be in such final forms as the Finance Director shall approve, with the Finance Director's release of any Financing Document for delivery constituting conclusive evidence of such officer's final approval of the Document's fina 4. The Town shall not take or omit to take any action the taking or omission of which shall causei itsi interest payments ont this financing tob bei includable! int the grossi income fori federal income tax purposes of the registered owners of the interest payment obligations. The Town! hereby designates its obligations tor make principal and interest payments under the Financing Documents as "qualified tax-exempt obligations" for the purpose of Internal 5. The Town intends that the adoption oft this resolution will be a declaration oft the Town's official intent to reimburse expenditures for the projects that is to be financed from the proceeds of the United Community Bank financing described above. The Town intends that funds that have been advanced, ort that may be advanced, from the Town's general fund, or any other Town fund related to the project, for project costs may be reimbursed 5. Allp priora actions ofTown officers inf furtherance oft the purposes oft this resolution: are hereby ratified, approved and confirmed. All other resolutions (or parts thereof) in conflict with this resolution arel hereby repealed, tot the extent oft the conflict. This resolution shallt take effect  BEI IT THEREFORE RESOLVED, as follows:  form.  Revenue Code Section 265(b)(3).  fromt thef financing proceeds.  immediately.  Councilman Barbour made a motion, seconded by Mayor Pro-Tem Dunn, to adopt Resolution No. 677 (05-  2021). Unanimously approved.  TOWN OF SMITHFIELD RESOLUTION NO. 677 (05-2021)  RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF AF FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL WHEREAS, the Town of Smithfield, North Carolina, desires to secure financing for the expansion of the police building in Smithfield to better serve the citizens of Smithfield; and WHEREAS, The Town of Smithfield, North Carolina, desirest tof finance the Projects by the use of an installment contract authorized under North Carolina General Statute 160A, Article 3,  STATUTE 160A-20  provide muchr needed office ande evidence room space; and  Section 20; and    6121  must be presented to enable the North off facts setf forth in! North Carolina  WHEREAS, findings off fact by this governing body itsf General Statute 159, Article 8, Section 151 priort  Carolina Local Government Commission tor make to approval findings oft the proposed contract;  BEITE RESOLVED1 thatt the Town Council oft the Town of Smithfield, North session ont the 11 day of March, 2021, make thei following findings contract is expedient because the Town is growing due to  NOW, THEREFORE, ins Carolina, meeting special off fact:  1. The proposed new subdivisions; andt the police department have outgrown the 2. Thep proposed contracti isp preferable toab bondi issuef fort thes same dollars purpose and The because Town the cost to expand the police building isl less than a million and keep a healthy fund can.s service the debt ont this project, fund the other tax projects, burden on the residents of the balance-without significantly amount of increasing up to $784,572 could not be prudently raised with Town. The proposed unappropriated fund balance and non-voted bonds that  annexation and existing building.  current appropriations, could be raised in at timely manner. 3. The cost off financing costs ofi issuing general obligation sums are not excessive.  under the proposed contract is expected to be less than the  bonds.  4.  The sums to fall due. under the contract are adequate and not financing excessive rates for with the proposed purpose. The Town will carefully review proposed construction costs to ensure 5. The Town of Smithfield debt management procedures and policies are good, isin as verified by the Town's Finance Director and through annual audits. its The debti Towni in such a compliance with all applicable laws and will continue to manage The maximumi increase int taxes necessary tor meett the sumst tot fall due under the contract will be no greater than 0 cents per $100 valuation and is not The Town of Smithfield, North Carolina, is not in defaulti in any ofi its debt service 8. The attorney fort the Town of Smithfield has rendered an opinion thatt funds the proposed be Project is authorized by law and is a purpose for which public expended pursuant tot the Constitution and laws of North Carolina. NOW, THEREFORE, BE ITE FURTHER RESOLVED1 thati the Town Manager Carolina, or Finance in Director an is hereby authorized to act on behalf of the Town of Smithfield, North application with the North Carolina Local Government Commission for with approval resolution. and the proposed financing contract and other actions not inconsistent this This resolution is effective uponi its adoption this 11th day of March, 2021.  the! help oft the LGC and will closely monitor proposed  manner. proposed deemedt tol be excessive. obligations.  6. 7.  may of the filing Project  Councilman Barbour made a motion, seconded by Councilman Rabil, to approve the funding and  financing terms from United Community Bank. Unanimously approved.  Business Items 1.  Consideration and request for approval to correct the salary of the recently promoted Public Works Street Division Crew Leader that att thel last Council meeting, the Council approved the promotion oft the Town! Manager Michael Scotte explained Leader 10%i increase in salary. Upon further review, staff discovered the 10% increase in salary was less than the minimum starting fort thep position whichever was greater. The Town increase wouldh be upt to 10% or upt tot the minimum starting salaryf tol bei increased tot the minimum: salary oft the crew  Public Works Street Division Crew  ata  salary for the crew! leader position. Normally, the  Manager was requesting the Council allowt the employee's salary  leader position.  Councilman Barbour made a motion, seconded by Mayor Pro-Tem Dunn, to approve the minimum the salary adjustment for the  oft the recently promoted Public Works Street Division Crewl Leader to that of  salary  crew leader position. Unanimously approved.  2. Fire Department Michael Pick-up Scotte trucks explained that att the last Council meeting, the Council approved the purchase oftwo pick-up trucks for the Fire Department. He explained staff was having difficulties purchasing the vehicles because they were no combined total of$ $65,100. Staff hadf found a few that were available at local auto dealerships, but often they were sold before staff could receive to purchase himt approval top purchase thet two pick-upt trucks for the Firel Departmentr nott to exceedi the  Town Manager longer in production. approval from the Council allow budgeted amount of $65,100.  These two vehicles were included in the current fiscal year budget for a from the Council. The Town Manager explained he was seeking    6122  Councilman Barbour made a motion, seconded by Mayor Pro-Tem Dunn, to allow the Town Manager to purchase two pick-up trucks for the Fire Department not to exceed the budgeted amount of $65,100.  Unanimously approved.  Adjourn  Councilman Barbour made a motion, seconded by Mayor Pro-Tem Dunn, to adjourn the meeting. The  meeting adjourned ata approximately 6:50 pm.  L 7 M. AndyMoore, Mayor  OFSHITRA SMITHFEI RIL 23,  ATTEST:  alari Shannan Parrish,own Clerk