AGENDA Sawmills Town Hall Tuesday, ,January 17,2017 6:00 pm  Regular Meeting oft the Sawmills Town Council  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 8. Financial Matters:  Mayor Joe Wesson Mayor Joe Wesson Mayor. Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor. Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor Joe Wesson Mayor Joe Wesson  A. December 20, 2016 Regular Meeting Minutes  B. Sawmills Volunteer Fire & Rescue Department Awards A. Approve Auditors Contract for FY2016-2017 B. Future Sewer Infrastructure Funding A. Council Committee Appointments B. Annexation Agreement with the Town of Hudson NC811 Contract Agreement 10. Updates: A. Code Enforcement Report B. Council Comment 11. Adjourn  9. Discussion:    Page 1of6  TUESDAY, DECEMBER 20, 2016  TOWN OF SAWMILLS REGULAR COUNCIL MEETING  6:00P PM  COUNCIL PRESENT Joe Wesson Gerelene Blevins Keith Warren Reed Lingerfelt Jeff Wilson Joe Norman  STAFF PRESENT Christopher Todd Terry Taylor Julie A Good  CALL TO ORDER: Mayor Joe Wesson called the meeting to order. INVOCATION: Pastor Glen Walker gave the invocation.  PLEDGE OF ALLEGIANCE: Mayor Joe Wesson led the Pledge of Allegiance.  ADOPT AGENDA: Mayor Joe Wesson asked for a motion to adopt the December 20, 2016 Agenda with the addition of Agenda Item 9B. 1240 Cajah Mountain Road Annexation. Reid Lingerfelt made a motion, and Joe Norman seconded, to adopt the December 20, 2016 Agenda with the addition of Agenda Item 9B. 1240 Cajah Mountain Road Annexation. All  were in favor.  APPROVE NOVEMBER 15, 2016 REGULAR MEETING MINUTES: Mayor Joe Wesson asked for a motion to approve the November 15, 20161 regular meeting minutes. Keith Warren made a motion, and Gerelene Blevins seconded, to approve the November 15,  20161 regular meeting minutes. All were in favor.  PUBLIC COMMENT: Mayor Joe Wesson asked if anyone had any questions or comments  at this time. No one wished to speak. RECOGNITIONS:  RECYCLE REWARDS WINNER: Mayor Joe Wesson announced Mrs. Dianna Blanton, as the December Recycle Rewards winner. A credit of twenty-eight dollars ($28.00) will be    December 2016 Page 2 of6  added tol her sanitation bill. No Council action was required.  FINANCIAL MATTERS:  FY 2015-2016 AUDIT PRESENTATION: James Lowdermilk, with Lowdermilk, Church Mr. Lowdermilk stated that the Town received an unqualified audit and commended staff  &Co., L.L.P., presented the Towns FY 2015-2016 audit to Council. and Council on their efforts to maintain a strong fund balance.  No Council action was required.  ADOPT BUDGET WORKSHOP SCHEDULE: Mayor Joe Wesson asked for a motion to Joe Norman made a motion, and Reid Lingerfelt seconded, to adopt the proposed FY 2017-  adopt the proposed FY 2017-2018 budget workshop schedule. 2018 budget workshop schedule. All were: in favor.  DESIGNATE DEPOSITORIES: Town Administrator stated that the following institutions needed to recognized, by Council, as official depositories for the Town of Sawmills for  calendar year 2017: Financial Institution: First Citizens Bank NA  TypeofA Account(s): Checking, Payroll, Investments Investments Investments  Capital Bank (Pka/CommunityOne Bank) NC Cash Management Trust (NCCMT)  Joe Norman made a motion, and Keith Warren seconded, to designate First Citizens Bank, Capital Bank (fka CommunityOne Bank) and NC Cash Management Trust (NCCMT) as  depositories. All were: in favor.  DISCUSSION:  MAYFIELD DRIVE SEWER PROJECT: Town Administrator Christopher Todd stated that the Council included within the FY 2016/2017 budget one hundred seventy-six thousand dollars ($176,000.000) for the Mayfield Drive Sewer Extension project. The funds were intended to increase sewer service to Mayfield Drive and create a line which could be used for further extensions. As staff was preparing for this project, it was made evident that a waterline would need to be relocated in order to best complete the sewer line  extension.    December 2016 Page 3 of6  The relocation of the waterline will result in an increase of the cost to complete the project to an estimated total of three hundred fifteen thousand seven hundred ninety-four dollars ($315,794.000), which includes both the water relocation and the sewer extension. Also within the FY 2016/2017 budget, Council had included one hundred eighteen thousand seven hundred fifty dollars ($118,750.00) for a waterline replacement on Maggie Lane and Gatewood Drive. These projects were next on the Capital Improvement Plan and that is the After reviewing the budget, there would be sufficient funds available to complete the Mayfield Drive projects, if Council was to decide to re-appropriate the funds for the Maggie Lane Gatewood Drive waterline project to Mayfield Drive. This would mean the Council would not need to transfer funds from the general account to cover the cost of the Mayfield Drive project. The remaining difference of twenty-one thousand forty-four dollars ($21,044.00) would be able to be appropriated from other line items within the budget. Gerelene Blevins made a motion, and Joe Norman seconded, to re-appropriate the one hundred eighteen thousand seven hundred fifty dollars ($118,750.00) funds for the Maggie Lane and Gatewood Drive project to the Mayfield Drive project, and approve staff moving  primary reason they were prioritized for this fiscal year.  forward with the Mayfield Drive water and sewer project.  1240 CAJAH MOUNTAIN ROAD ANNEXATION: Town Administrator Christopher Todd stated that the property owner of 1240 Cajah Mountain Road (Cajah's Mountain Quick Mart) has petitioned for a satellite annexation to be part of the Town of Hudson. 1240 Cajah Mountain Road does not fall within the statutory jurisdiction of the Town of Hudson to allow for voluntary satellite annexation. The property is located with the statutory jurisdiction of the Town of Sawmills as part of the Extraterritorial Zoning In order for the Town of Hudson to annex this property there must be an agreement with the Town of Sawmills, stating Sawmills would allow the property to be annexed to Hudson. A draft agreement and presentation will be available during the regularly scheduled January  Jurisdiction.  2017 Town Council Meeting. No Council action was required.  UPDATES:  DECEMBER CODE ENFORCEMENT REPORT: Town Planner Leslie M. Meadows  stated that there are thirteen (13) code enforcement cases open:  Caldwell Ready Mix Concrete is the owner of an abandoned mobile home and abandoned concrete factory. Town Planner Leslie M. Meadows, PER Council suggestion, has been trying to contact Wes Triplett to set an official completion date. Wes Triplett has not returned any calls. Last message was left on December 6,  2016;    December 2016 Page 40 of6  Teresa Annas Compton is the owner ofa dilapidated house located at 4476 Sawmills School Road. Town Planner Leslie M. Meadows, per Council suggestion, sent out a certified letter on November 17, 2016. No confirmation of certified delivery or Charles Hagaman, owner of 1940 Leah Drive #4. Town Planner Leslie M. Meadows spoke with MHP Manager Tim Hart on December 6, 2016 and was informed that demolition and removal of the mobile home has begun and will be Terry Rowe, owner of 4016 and 4017 Cloninger Way. Town Planner Leslie M. Meadows spoke with owner on December 6, 2016. Owner informed Town Planner Leslie M. Meadows that he was waiting on a second estimate for demolition from JK Grading, Jeff Kerley of Hickory, along with Harry Hatcher's estimate. Owner refuses to start demolition without cost comparison and hopes to have structures Randall Hamby at 3632 Coble Dairy Road. Town Planner Leslie M. Meadows met with contractor Mike Willis on site on December 8, 2016. The security fence is installed and they have measured for sixty-two (62) new trees which will hopefully WNC Properties, LLC owner of 4209 Creekview Pl. Minimum housing complaint. Town Planner Leslie M. Meadows stated that the WPCOG is going to initiate a Vacant and Substandard Housing Taskforce in January. This may result in re- evaluation of Ordnance requirements for Minimum Housing code enforcement, David Graham (Landlord) owner of 4176 US Highway 321A. Minimum housing complaint. Town Planner Leslie M. Meadows stated that the WPCOG is going to initiate a Vacant and Substandard Housing Taskforce in January. This may result in re-evaluation of Ordnance requirements for Minimum Housing code enforcement; Casey Lynn Wallace, owner of 3950-1 Walters MHP Drive. Minimum housing complaint. Town Planner Leslie M. Meadows stated that the WPCOG is going to initiate a Vacant and Substandard Housing Taskforce in January. This may result in re-evaluation of Ordnance requirements for Minimum Housing code enforcement; Tasco Properties owner of2155 White Pine Dr #13. Minimum housing complaint. Town Planner Leslie M. Meadows stated that the WPCOG is going to initiate a Vacant and Substandard Housing Taskforce in January. This may result in re- evaluation of Ordnance requirements for Minimum Housing code enforcement; Carolyn Bray, owner of 2570 Baker Cir. Abandoned mobile home. Town Planner Leslie M. Meadows spoke with contact on this case Amber Shumate (adopted son's daughter) on December 6, 2016. Town Planner Leslie M. Meadows was told that the mobile home in question belongs to owner'sniece, Robin Brittan. Town Planner Leslie M. Meadows is trying to contact Mrs. Brittan and will contact the family Andrew Dehart, owner 4036 US Highway 321A. High grass and junked vehicles. Town Planner Leslie M. Meadows spoke to local contact, Leslie Kenworthy. Extension was given until December 20, 2016. Town Planner Leslie M. Meadows  contact from owner before December 6, 2016;  removed by the December 20, 2016 deadline;  down by the end of the year;  be planted within the month;  further in January;    December 2016 Page 50 of6  did a spot check on the property on December 8, 2016. Two (2). junked tractor trailer cabs have been removed, trailers and high grass/weeds still remain; Mike and Katie Mast, owner 4347 and 4351 Sawmills School Road. Abandoned/dllapidated homes and solid waste. Town Planner Leslie M. Meadows stated that improvements have been made to landscaping and removal of solid Cheney Carter, owner 4361 Sawmills School Road. Abandoned/dllepidatea home. Town Planner Leslie M. Meadows stated that there was no change in the property as ofDecember 8, 2016 and there has been no response from the November deadline.  waste/outdoor storage. Case is closed;  No Council action was required.  CALANDER UPDATES: Town Administrator Christopher Todd stated that the following are the 2017 Holiday Closings and 2017 Disconnect Dates for Council's information:  2017 Holiday Closings New Years Martin Luther King Day Good Friday Memorial Day 4th ofJuly Labor Day Veterans Day Thanksgiving Christmas  Monday January 2 Monday January 16 Friday April 14 Monday May 29 Tuesday July 4 Monday September 4 Monday November 13 Thursday and Friday November 23 and Monday, Tuesday and Wednesday December 25, 26 and 27  24  2017 Disconnects December 2016 January February March April May June July August September October November December  Wednesday January 4 Tuesday January 31 Tuesday February 28 Monday April 3 Monday May 1 Wednesday May 31 Wednesday July 5 Monday July 31 Thursday August 31 Monday October 2 Tuesday October 31 Thursday November 30 Wednesday January 3  No Council action was required.    December 2016 Page 6of6  COUNCIL COMMENT:  Mayor Joe Wesson asked if anyone on the Council had any questions or comments at this Joe Norman stated that it seemed like yesterday we were just talking about 2016. Joe Norman stated that the Town has had a good year; we have paved streets and doing water Keith Warren stated that it had been a good year. Keith Warren wanted to wish everyone a Gerelene Blevins stated that it had been a good year. Gerelene Blevins also stated that she was glad the Town was looking into the code enforcement in Sawmills. Gerelene Blevins  time.  and sewer line projects. Merry Christmas.  wanted to wish everyone a Merry Christmas and a Happy New Year. Jeff Wilson wanted to wish everyone a Merry Christmas.  Reed Lingerfelt stated that this year has gone by fast; he had enjoyed working with everyone and looked forward to the coming year. Reid Lingerfelt stated he hoped everyone Mayor Joe Wesson stated that he though the audit went well and wanted to commend staff for the good job. Mayor Joe Wesson stated that the Town is moving forward and being efficient and he looks forward to good things in next year's budget. Mayor Joe Wesson  had a safe ride home and have a Merry Christmas.  wanted to wish everyone a Merry Christmas.  COUNCIL ADJOURN: Mayor Joe Wesson asked for a motion to adjourn.  Joe Norman made a motion, and Reid Lingerfelt seconded, to adjourn the meeting. All were  in favor.  Joe Wesson, Mayor  Julie A. Good, Town Clerk    AGENDA ITEM 7A  MEMO DATE: SUBJECT:  January 17,2017 Recognition: Recycle Rewards Program  Discussion:  The Town of Sawmills would like to congratulate Angel McBride on winning the Recycle Rewards Program for the month of. January. Mayor Joe Wesson will present her with a Certificate of Appreciation. A twenty-eight dollar ($28.00) credit will be added to the current  sanitation bill.  Recommendation: No Council action is required.    AGENDA ITEM 7B  MEMO DATE: SUBJECT:  January 17,2017 Recognition: Sawmills Volunteer Fire & Rescue Department Awards  Discussion:  Mayor Joe Wesson will be presenting awards ofappreciation to the following Sawmills  Volunteer Fire & Rescue Department members:  Firefighter of the Vear First Responder of the Year Officer of the Year Officer of the Year  Firefighter Josh Austin Firefighter Jason Hines Chief David Price Firefighter Kyle Clontz  Recommendation: No Council action is required.    AGENDA ITEM 8A  MEMO DATE: SUBJECT:  January 17,2017 Financial Matters: Approve Auditors Contract for FY2016-2017  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 $10,710.00 (ten thousand seven hundred ten dollars),  will cover the period ofJuly 1, 20161 to June 30, 2017. This amount of $10,710.00 includes the following: Preparation of annual financial statements:  Audit:  $6,960.00 $3,750.00  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:  Staffrecommends Council approve a contract with Lowdermilk, Church & Co., L.L.P. in the amount of $10,710.00 (ten thousand seven hundred ten dollars) and covering the period of July  1,2 2016 to. June 30, 2017.    LGC-205. (Rev. 2016) Of  CONTRACTTO. AUDITACCOUNTS Town of Sawmllis Primary Govemmental Unit  Discretely Presented Component Unit (DPCU) if applicable  On this  26th  day of  October  2016  Auditor: and and  Lowdermilk Church & Co., LLP  Auditor Mailing Address: 121 North Sterling Street,  Morganton, NC 28655  Hereinafter referred to as The Auditor Town of Sawmills (Primary Goverment)  Town Council  (Governing! Board(s)) of  hereinafter. referred to as the Governmental Unit(s); agree as follows:  (Discretely Presented Component Unit)  1. The Auditor. shall audit all statements and disclosures required by generally accepted accounting principles (GAAP) and additional required legal statements ànd disclosures of all funds and/or divisions of the Governmental Unit (s) non-major combining, and individual fund statements and schedules shall be subjected to the auditing proçedures applied int the audit of the basic financial statements and an opinion will 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 2. At. a minimum, the Auditor shall conduct his/her audit and render his/her report in accordance with génerally accepted auditing standards. The Auditor shall perform the audit in accordance with Goverment. Auditing Standards ifrequired 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 Requiremenis for Federal. Awards, Final Rule, (Uniform Guidance) and the State Single Audit Implementation Act, the Auditor shall perform a Single Audit. This audit ànd all associated audit documentation may be subject to review by Federal and State agencies in acçordance with Federal and State laws, including the staffs of the Office of State Anditor (OSA). and the Local Government Commission (LGC). If the audit and/or audit documentation are found in this review to be substandard, the results oft the review may bei forwarded to the North Carolina State Board ofCPA Examiners (NC CPA Board). County and Multi-County Health Departments: The Office of State Auditor will designate certain programs that have eligibility. requirements to be considered major programs in accordance with OMB Uniform Guidance for the State of North Carolina. The LGC will notify the auditor and the County and Multi-Health Department of these programs. A County or al Multi-County Health Department may be selected to audit any oft these programs as major. 3, Ifa an entity is determined to be a component of another government as defined by the group audit standards - the entity's auditor will make a good faith effort to comply in a timely manner with the requests of the group auditor in 4. This contract contemplates an unqualified opinion being rendered. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or restrictions in scope which would lead to a qualification should be fullyexplained 5. If this audit engagement is subject to the standards for audit as defined in Government Audiling Standards, 2011 revisions, issued by the Comptroller General of the United States, then by accepting this engagement, the. Auditor warrants that he has met the requirements for a peer review and continuing education as specified in Goverment  for the period begimning  July1  2016 and ending  June 30  2017  The  service fund type, and the fiduciary fund types).  accordance with AU-6 $600.41- $600,42,  inan atfachment to this contract,    Contract to. Audit Accounts (cont.).  Town of Sawmills  Governmental Unit.  Discretely Presented Component Units (DPCU) if applicable  Auditing Standards. The Auditor agrees to provide a çopy oftheir most recent peer review report regardless oft the date oft the piorperreviewrport to the Governmental Unit and the Secretary of thel LGC prior to. the execution of the audit contract (See Item 22)., If the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit without first contacting the Secretary of the LGC for a peer review If the audit engagement is not subject to Government Accounting Standards or if financial statements are not prepared in accordance with GAAP and: fail to include all disclosures required by GAAP, the Auditor. shall provide 6,. Iti is agreed that time is of the essence in this contract.. All audits are to be performed and the report of audit submitted to the State and Local Government Finance Division (SLGFD) within four months of fiscal. year end. or the audit fee, an amended contraçt along with a written explanation of the delay must be submitted to the 7. Iti is agreed that generally accepted auditing standards include a review of thé Governmental Unit's 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 will make a written report, which may or may not be a part ofthe written report of audit, to the Governing Board setting forth his findings, together with his recommendations for improvement. That written report must 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 thé 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 records for audit, financial statement preparation, any finance-rolated investigations, or any. other audit-related work in the. State of North Carolina. Inyoices for. services rendered under these contracts shall not be paid by the Governmental Unit until the invoice has been. approved. by the Secretary of the LGC (This also includes any progress billings.) [G.S. 159-34. and. 115C-447] All invoices for Audit work must be submitted by email in PDF format to the Secretary oft the LGC tp/nctreasurersigid.caplle-net Subject line should read "Invoice- - [Unit Name). The PDF invoice marked 'approved' with approval date will be returned by email to the Auditor to present to the Governmental Unit for payment. Approval is not required on contracts and invoices for system improvements and similar services ofa 9. In consideration of the satisfactory performance of the provisions of this contract, the Primary Governmental Unit shall pay to the Auditor, upon approval by the Secretary of the LGC, the fee, which includes any cost 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 10. Ift the Governmental Unit has outstanding revenue bonds, the Auditor shall include documentation either in the notes to the audited financial statements or as a separate report submitted to the SLGFD along with the audit report, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the Auditor should be aware that any other bond compliance statements or additional reports required in the authorizing bond documents need to be submitted to the SLGFD simultaneously with the Governmental Unit's audited financial statements unless  analysis that may result in additional contractual requirements.  an explanation as to whyi in an attachment..  Audit report is due on: secretary of thel LGC: for approval.  October 31  2017  Ifitbecomes necessary to amend this due date  reportwith the Secretary oftheLGC.  for approval.  The inyoices must be sent via upload through the current portal address:  non-auditing nature.  Acts. (Note: Fees listed on signature pages.)  otherwise specified int the bond documents.  Page 2 of8    Contract to Audit Accounts (cont.).  Town of Sawmills  Governmental Unit  Discretely Presented Component Units (DPCU)ifapplicable  11. 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 finançial statements and notes of the Governmental Unit and all of its component units prepared in accordançe with GAAP, (c) supplementary information requested by the client 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 ofaudit to the Govérning Board as soon as] practical after the close oft the accounting period. 12. Ifthe audit firm is required by the NC CPA Board or the Secretary of the LGC to. havé aj pre-issuance review oft their audit work, there must be a statement added to the engagement letter specifying the pre-issuance review including a statement that the Governmental Unit will not be billed for the pre-issuançe review. The pre-issuance review must be performed prior to the completed audit being submitted to the LGC, The pre-issuance report must accompany 13. The Auditor shall electronically submit the report of audit to the LGC as a text-based PDF file when (or prior to) submitting the 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 offices of the SLGFD by any interested. parties. Any subsequent revisions to these reports must be sent to the Secretary of the LGC. 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 to fulfill secondary market disclosure requirements oft the Securities Exchange Commission and other lawful purposes of the Governmental Unit without subsequent consent of the Auditor. Ifit is determined by the LGC that corrections need to be made to the Goyernmental Unit's financial statements, they should be provided within three days of notification unless another time frame is agreed to by the Ifthe OSA designates certain programs to be audited as major programs, as discussed in item #2, agreed-upon proçedures report, a turnaround document and a representation letteraddressed to the OSA shall be submitted to the The LGC's proçess for submitting contracts, audit reports and invoices is subject to change. Auditors should use the submission process in effect at the time of submission. The most current instructions will be found on our website: 14. Should circumstances disclosed by the audit call for a more detailed investigation by the Auditor than necessary under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need for such additional investigation ànd the additional compensation required therefore, Upon approval by the Secretary of the LGC, this contract may be varied or changed to include the increased time and/or compensation as may be agreed 15. If an approved contract needs to be varied or changed for any reason, the change must be made in writing, on the Amended LGC-205 contract form and pre-audited if the change includes a change in audit fee. This amended contract needs to be completed in full, including a written explanation oft the change, signed and dated by all original parties to the contract, and then must be submitted through the audit contract portal to the Secretary of the LGC: for approval. The portal address to upload your amended contract is atasaiflspleane No change shall be effective unless approved by the Secretary of the LGC, the Governing Board, and the Auditor. 16. Whenever the Auditor uses an engagement letter with the Governmental Unit, Item #17 is to be completed by referencing the engagement letter and attaching a copy of tho engagement letter to the contract to incorporate the engagement letter into the contract. In case ofc conflict between the terms of the engagement letter and the terms of  the audit report upon submission to the LGC.  and  LGC.  LGC.  htps/haydirawrercessAslelomsanéResouesass  upon by the Governing Board and the Auditor  Page 3 of8    Contract to Audit. Accounts (cont.).  Town of Sawmills  Governmental Unit  Discretely Presented Component Units (DPCU) if applicable  this contract, the terms of this contract will control. Engagement letter terms are deemed to be void unless. the conflicting terms of this contract are specifically deleted in Item #24 oft this contract. Engagement letters containing  indemnification clauses will not be approved by the LGC.  17. Special provisions should be limited. Please list any special provisions in an attachment.  See Attached Engagment Letter  18. A separate contract should not be made for each division to be audited or report to be submitted. Ifa DPCUis subject to the audit requirements detailed in the Local Government Budget and Fiscal Control Act and a separate audit report is issued, a separate audit contract is required. Ifa separate report is not to be issued and the DPCUis inçluded in the primary. government audit, the DPCU must be named along with the parent government on this audit contract. Signatures from the DPCU Board chairman and finance officer also must bei included on this contract. 19. The contract must be executed, pre-audited, physically signed by all parties including Governmental Unit and Auditor signatures and submitted in PDF format to the Secretary of the LGC. The current portal address to upload your contractual documents is http:/nctreasurerslgfd.leapflenet Electronic signatures are not açcepted at this time, Included with this contract are instructions to submit contracts and invoices for approval as of October 2015. These instructions are subject to change. Please check the NCTreasurer's web sité at www.nctreasurer.com for the 20, The contract is not valid until it is approved by the LGC Secretary. 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 21,. There are no. other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into in accordançe with the procedure set out herein and approved by the Secretary oft the 22. E-Verify. Auditor shall comply with the requirements ofNCGS Chapter 64 Article 2. Further, if Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of NCGS 23, Contractor hereby certifies that Contractor, and all subcontractors, are not on the. Iran Final Divestment List ("List") created by. the North Carolina State Treasurer pursuant to N,C.G.S. 143-6A-4. Contractor shall not utilize any 24. All of the above paragraphs are understood and shall apply to this contract, except the following numbered  most recént instructions. contracti is approved.  LGC.  Chapter 64, Article2,  subcontractor that is identified on the List.  paragraphs shall be deleted: (See Item 161 for clarification).  SIGNATURE. PAGES. FOLLOW  Page 4 of8    Contract to Audit. Accounts (cont.).  Town of Sawmills  Governmental Unit  Discretely Presented Component Units (DPCU) ifapplicable  Town of Sawmills ".  FEES  Year-end bookkeeping assistance- - [For audits subject fo Govermment Auditing Standards, this is limited to  bookkeeping services permitted by revised. Independence Standards)  $- 6,960 3,750  Audit  Preparation of the annual financial Statements  Prior to submission of the completed audited financial report, appliçable compliance reports and amended contract (if required) the Auditor may submit invoices for approval for serviçes rendered, not to exceed 75% of the total of the stated fees above. Ifthe current contracted: fee is not fixed int total, invoices for services rendered may be approved for up to  75% oft the prior year audit fee.  The 75% cap for interim invoice approval for this audit contractis $ Communication regarding audit contract requests for modification or official approvals will be sent to the email addresses provided in the spaces below, 0 Lowdermilk Church & Co.; LLP : BA 5James E: Lowdermilk Authorized Audit firmi representativ name: Type or) print G  8,030  **NA ift there is tol be no interim billing :  Towr ofSawmills PRE-AUDIT CERTIFICATE: Required by G.S,159-28 This instrument has been pre-audited in the manner required by Thel Local Government Budget and Fiscal Control Act orby the School Budget and) Fiscal Control Act. Additionally, the following datei is the date this audit contract was approved byt the governing! body. Primary Governmental Unit Finance Officer:  (a)  Audit Firm Signature: Namé of Audit Firm  - firm representative  By  Karén Clontz  igature of Bate  Email Address of Audit Firm Governmental Unit Signaturés: Name of) Primary Governinent  10-31-16 miepa@belsouth.net MMTown of Sawmills:  Type or print name  Primary Government Finance Officer Signature (Pre-qudit Certificate must be dated.) Email Address of Finance Officer  Date  3  By oe.Wesson, Mayor.  Mayor/ /Chairperson: Type or print name and title Signature ofl Mayor/Chairperson of governing board  Date_ By'  1.93.4. :  47949X9.99554 N/A - X7 :A :  " :.  Date Primary Government Governing Body Approved Audit Contract- G.S. 159-34(a)  Chair of Audit Committee Type or) print name Signature of Audit Committee Chairperson  Date this section "N/A"  Govermenta Unit has no audit committee, mark  Page 5 of8    Contract to Audit. Accounts (cont.)  Town of Sawmills  Governmental Unit  Discretely Presented Component Units (DPCU)ifaplicable  **This page to only be completed by Discretely Presented Component Units **  7337 :  FEES  Year-end bookkeeping assistance- = [For audits subject to Government Auditing Standards, this is limited to  bookkeeping services permitted by revised Independence Standards]  Audit  Preparation of the annual financial Statements  Prior to submission ofthe completed audited financial report, applicable compliance reports and amended contract (if required) the Auditor may submit invoices for approyal for sèrvices rendered, not to exceed 75% oft the total of the stated fees above. Ifthe current contracted fee is not fixed in total, invoices for servicès rendered may be approved for up to  75% oft the prior year audit fee.  The 75% cap for interim invoice approval for this audit contract is $ Communication vegarding audit contract requests for modification or official approvals will be sent to the ennail addresses provided in the spaces below. DPCU Governmental Unit Signatures: Name of] Discreetly Presented Component Unit DPCUE Board Chairperson: Type or print namé and title Signature of Chairperson ofDPCU governing board  **] NA if there is to be no interim billing  PRE-AUDIT CERTIFICATE: Required by G.S. 159-28 This instrument has been pre-audited: in the manner required by" The Local Govermment Budget and] Fiscal Control. Act or by the School Budget and Fiscal Control Act. Additionally, the following datei is the date this audit contract was approved by the governing body,  (a)  By  By_  DPCU Finane Officèr: Type or print name  Date By  DPCU Finance Officer Signature (Pre-audit Certificate must be dated.) Email. Address of Finance Officer Contract- G.S. 159-34(a)  R830  .. **  Date   Chair of Audit Committee Type or print name Signature of Audit Committee Chairperson Date HXEXECET ** fGovernmenta Unit has no audit committee, mark    this. section "N/A"  Date DPCU Governing Body Approved Audit  Page 6of8    Contract to Audit Accounts (cont.)  Town of Sawmills  Governmental Unit  Discretely Presented Component Units (DPCU)ifapplicable  Steps to Completing the Audit Contract  1, Complete the Header Information - NEW:Ifal DPCUI is subject to the audit requirements as detailed in the Local Government Budget and Fiscal Control Act and a separate audit report is issued, a separate audit contract is required. Ifa separate report is not issued for the DPCU andi is tol bei included in the Primary Government's audit, the DPCU must be named with the parent government on this Audit contract. The Board chairman of the DPCU  also must sigh the Audit contract.  2. Item No, 1- Complete the period. covered by the audit  3. Item No, 6-1 Fill in the audit due date. For Governmental Unit (s), the contract due date can be no later than 4 months after the end oft the fiscal year, even though amended contracts may not be required until a later date. 4. Item No. 8-If the process for invoice approval instructions changed, the Auditor should make sure he and his administrative staff are familiar with the current process. Instructions for each process can be found at the following link. AtpSayecesurzOanx 5. Item No. 9-NEW: Please note that the fee section has been moved to the signature pages, Pages 58 &6. 6. Item No. 16-Ift there is a: reference to an engagement letter or other document (ex: Addendum), has the engagement letter or other document been acknowledged by the Governmental Unit and attached to the contract d. Do the terms and fees specified in the engagement letter agree with the. Audit contract? "In case of conflict between the terms of the engagement letter and the terms ofthis contract, the terms ofthis b. Does the engagement letter contain an indemnification. clause? The audit contract will not be approved if there is an indemnification clause - refer to LGCMemo # 986, 7. Complete the fee section for BOTH the. Primary Government and the DPCU (ifapplicable) on the signature  submitted to the SLGFD?  contract will control.' "  pages, please note:  The cap on interim payments is 75% of the current audit fee for services rendered if the contracted fee amount is a fixed amount. If any part of the fee is variable, interim payments are limited to 75% of the prior year's total audit fee. If the contract fee is partially variable, we will compare the authorized interim payment on the contract to 75% of last year's actual approved total audit fee amount according to our records, There is a report of audit fees paid by each govemmental unit on our web site: Atpsy/wwy/nctreasurescomigPaslon.udi-semicesandd-Audit-Fes.aspx - Auditors and Audit Please call or email Steven Holmberg of our office at 919-807-2394 steyen.ho'mbergnetreasurer.com For variable fees for services, are the hourly rates or other rates clearly stated in detail? If issued separately in an addendum, has the separate page been acknowledged in writing by the Governmental  Fees.  ifyoul have any questions about the fees on this list.  Unit?  Page 7of8    Contract to Audit Accounts (cont.).  Town of Sawmills  Governmental Unit  Discretely Presented Component Units (DPCU) if applicable  For fees for services that are a combination of fixed and variable fees, are the serviçes to be provided for the fixed portion of the fee clearly stated? Are the hourly rates or other rates clearly stated for the variable portion oft the fee? (Note: See previous bullet point regarding variable fees.) Iftherei is to be no interim billing, please indicate N/A instead ofleaving the line blank.  8. Signature Area - There are now 2 Signature Pages: one for the Primary Government and one for the DPCU. Send the page(s) that are appliçablé to your Unit of Government. Make sure all signatures have been obtained, and properly dated. The contract must be approved by Governing Boards pursuant to- G.S. 159-34(a). NEW-Ifthis contract includes auditing a DPCU that is a Public Authority under the Local Government Budget and Fiscal Control Acti iti must be: named: in this Audit contract and the Board chairperson oft the DPCU must also sign the Audit contract in the area indicated, If the DPCU has a separate Audit, a separate. Audit contract is 9. Please place the date the Unit's Governing Board and the DPCU's governing Board (ifa applicable). approved the  required for the DPCU.  audit contract in the space provided.  a. Please make sure that youj provide email addresses for the audit firm and finance officer as these willl be b. Has the pre-audit certificate for the Primary Government (and the DPCUifapplivable) been signed and Has the name and title oft the Mayor or Chairperson of the Unit's Governing Board and the DPCU's Chairperson (if applicable) been typed or printed on the contract and has he/she signed in the correct area  used to communicate official approval oft the contract.  dated by the appropriate party?  directly under the Auditor's signature?  10. If the Auditor is- performing an audit under the yellow book or single audit rules, has year-end bookkeeping assistance been limited to those arcas permitted under the revised GAO Independence Standards? Although not required, we encourage Governmental Units and Auditors to disclose the nature of these services in the contract or. an engagement letter, Fees for these services should be shown in the space indicated on the applicable 11. Has the most recently issued peer review report for the audit firm been included with the contract? This is required if the audit firm has received a new peer review report that has not yet been forwarded to us, The audit firm is only required to send the most current Péer Review: report to us once-1 not multiple times, 12. After all the signatures have been obtained and the contract is complete, please convert the contract and all other supporting documentation to be submitted for approval into a PDF file. Peer. Review Reports should be submitted in a separate PDF file. These documents should be submitted using the most current submission process whiçh çan be obtained at the NC Treasurer's web site - Atp/Ayangicasusrce 13. NEW: If an audit is unable to be çompleted by the due date, an Amended Contract should be completed and signed by the unit and auditor, using the new "Amended LGC-205" form (Rev. 2015). The written explanation for the delay is now included on the çontract itselfto complete, and must be signed by the original parties to the  signature page(s) of the contract.  ommeameRergureiapx  contract.  Page 8 of8    Lowdermilk Church & Co.,L.L.P. Certified Public Accountants  1211 N. Sterling Street Morganton, North Carolina 28655 Phone: (828)433-1226 Fax: (828)433-1230  To Honorable. Mayor and Members ofthe Town Council  October 26, 2016  ofthe Town of Sawmills Sawmills, North Carolina  We are pleased to confirm our understanding of the services we are toj provide the Town of Sawmills for the year ended June 30, 2017. We will audit the financial statements oft the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the related notes tot the financial statements, which collectively comprise the basic financial statements ofthe' Town of Sawmills as of and for the year ended. June 30, 2017, Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management's discussion' and analysis (MD&A), to supplement the' Town of Sawmills' basic financial statements, Such information, although not a part oft the 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 finançial statements in an - appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the Town of Sawmills' RSI in accordance with auditing standards génerally accepted in the United States of America, These limited procedures will consist ofinquiries ofmanagement regarding thé methods of preparing the information and comparing the information for consistency with managément's responses to our. inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic: financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not proyide us with sufficient evidençe to express an opinion or provide any assurance. The following RSI is required by generally accepted accountingprinciplos and will be subjected to  certain limited procedures, but will not be audited: Management's. Discussion and Analysis. Budgetary Comparison Information Liability (Asset) and Schedule ofC Contributions  1) 2)  3) Local Government Employees' Retirement System Schedule oft the Proportionate Share ofNet Pension  Wel have also been engaged to report on supplementary information other than RSI that accompanies the Town of Sawmills' financial statements, We will subject the following supplementaryi information to the auditing procedures applied in our audit ofthe 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 accordançe 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, inai report combined with our auditor's report on  the financial statements: 2) Budgetary Schedules 3) Other Schedules  1) Combining and Individual Fund Financial Statements    Audit Objectives  The objective of our audit is the éxpression of opinions as to whether your financial statements are: fairly presénted, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness oft the supplementary information referred toi in the second paragraph when considered in relation to 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 of the accounting records of the Town of Sawmills and other procedures we consider neçessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the Town of Sawmills' financial statements. Our report willl be addressed to the Town Council of the Town 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 ori issue reports, We will also provide ai réport (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 of testing ofinternal control and compliance, and the results ofthat testing, and not to provide an opinion on the effectiveness of 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, Ifduring our audit we become aware that the' Town ofs 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  or may withdraw from this 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 int the financial statements; therefore, our audit will involve, judgment about the number of transactions to be examined and the areas tol be tested. An audit also includes eyaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation' oft the financial statements. We will plan and perform the audit to obtain reasonable assurançe about whether the financial statements are free ofi mmaterial misstatement, whether from (I)errors, (2) fraudulent financial reporting, )misappropriation ofassets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalfoft the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to Because of thei inherent limitations ofan audit, combined with the inhèrent limitations of internal control, and beçause we will not perform a detailed examination ofall transactions, there is a risk that material misstatements may exist and notl 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 of any material errors, fraudulent financial reporting, or 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 clearlyinconsequential, and of any material abuse that comes to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later  provide reasonable assurance of detecting abuse.  periods for which we are not engaged as auditors.    Our procedures will include tests of documentary evidence supporting thet transactions reçorded in the accounts, and may include tests oft thej 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 of 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  standards,  Audit Procdures--Internal Control  Our audit will include obtaining an understanding oft the government and its environment, including internal control, sufficient to assess the risks of material misstatement ofthe finançial statements and to design thè nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of çertain 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 finançial statements. Our tests, ifperformed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal çontrol related matters that are: required to be communicated under AICPA professional  standards and Government. Auditing Standards. Audit) Procedures- Compliance  As part ofobtaining reasonable assurance about whether the financial statements are. freé ofmaterial misstatement, we will perform tests ofthe Town 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 compliançe 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 in preparing the financial statements and related notes of the Town 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, and Unit Data Input Worksheet. These nonaudit services do not constitute an' audit under Government. Auditing Standards and such services will not be conducted ina 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 toj perform any procedures or take any action that  could be construed as assuming management responsibilities.  Management Responsibilities  Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and 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 of accounting principles, for the preparation and fair presentation oft the financial statements and all accompanying information in conformity with U.S. generally accepted aocounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.    Management: is also responsible for making all financial records and related information available to us and: for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation andi fair presentation oft the 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 iti 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 aggrogated by us during the current engagement and pertaining to the latest period presented are immaterial, both You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about alll known or suspected fraud afecting the government involving (1) management, (2) employees who have significant roles ini internal control, and (3) others where the fraud could have ai material effect on the: financial statements. Your responsibilities include: informing us ofyour knowledge of any allegations off fraud or suspected: fraud affecting the government: received in communications from employeès, formner 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 oflaws, regulations, contracts 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 wel 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 oft the supplementary information no later than the date the supplementary information is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1): you are responsible for presentation ofthe supplementary information in accordance with GAAP; (2). you believe the supplementary information, including its form and content, is fairly presented in accordançe with GAAP; (3) the methods of measurement 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 preséntation of the supplementary information. Management is résponsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing réport copies ofprevious financial audits, attestation engagements, performance audits or other studies related to the objeotives discussed in the Audit Objectives section ofthis letter, This responsibility includes relaying to us corrective actions taken tos address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing managèment's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, ànd for 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 thei financial statements and related notes and any other nonaudit serviçes we provide. You will be required to acknowledge in the management: representation letter our assistance with preparation of 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; evaluate the adequacy and results of those services;  individually and in the aggregate, to the: financial statements taken as a whole.  or grant agreements, or abuse that we report.  the timing and format for providing that information.  consistency ofother information in the electronic site with the original document.  and acceptresponsibility for them.    Engagement Administration, Fees, and Other  Wer understand that your employees will prepare all cash, accounts receivable, or other confirmations and We will provide copies ofo our reports to the Town; however, management is responsible for distribution ofthe reports andi 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, a federal agency providing direct or indirect funding, or the U.S. Government Accountability. Office for purposes of a quality réview ofthe audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you ofany such request. Ifrequested, access to such audit documentation willl be provided under the supervision ofLowdermilk Church & Co., L.L.P. personnel. Furthermore, upon request, we may provide copies ofs 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 ai minimum ofi five years after thé report release date or for any additional period requested by thel Local Government Commission. Ifwe 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 ist not impaired under the AICPA Code of] Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any ofour personnel. Our fee for these services will be at our standard. hourly rates plus out-of-pocket costs (such as report reproduction, word proçessing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $10,710. Our standard hourly rates vary açcording to the degree of responsibility involved and the experience level oft thej personnel assigned to; your audit. Our inyoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firmi 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, If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification oft termination, even if wel 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 feei is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will notl be encountered during the audit. If significant 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 yout that we charge interest at ai rate of18% per annum on all invoices over 30 You may: request that we 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 a separate, new engagement. The terms and conditions ofthat new engagement will be governed by ar new,  schedules we: request and will loçate any documents selected by us fort testing,  other governmental agencies.  finding for guidance prior to déstroying the audit documentation.  days old.  terms ofthis engagement letter,  specific engagement letter for that service,    We are providing, you with a copy of our 2015 external peer review report which accompanies this letter, We appreciate the opportunity tol be ofs service to the Town of Sawmills and believe this letter accurately summarizes the significant terms of our engagement. Ifyou have any questions, please let us know. Ify you agree with the terms of our engagement, as described in this letter, please sign the enclosed copy and return iti to us,  Very trulyy yours;  Vames E. Lowdermilk Partner RESPONSB:  Bmesu  This letter correctly sets forth the understanding of the' Town of Sawmills.  Management signature: Title: Date: Governance signature: Title: Date:    BERNARD. ROBINSON &CompanyLL GemboACIBi-ANCI Winston-salem,NC  CerlledPbleAcountenbsandAdhsos Since 1947  System Review. Report  September 24, 2015  To the Partners ofLowdermilk Church & Co.,L.L.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 of Lowdermilk Church & Co.,L.L.P. (the firm) in effect for the year ended May 31, 2015. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our prooedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects, Our responsibility is to express. an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in' the As required by the standards, engagements selected for review included engagements performed In our opinion, the system of quality control for the acçounting and auditing practice of Lowdermilk Church & Co., L.L.P. in effect for the year ended May 31, 2015, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a: rating of pass, pass with deficiency(ies) orfail. Lowdermilk Church & Co., LL.P. has  standards at wagpacrypummay.  under Government, Auditing Standards and audits of employee benefit plans.  received aj peer review rating of pass.  Bunal Robivem & Cmpany B8P BERNARD ROBINSON & COMPANY,L.LP. Office: 1501 Highwoods Blvd, Suite 300-Grembong,NCZ7A0 Mailing: PO, Box 19608. Gremborg.NCZ/41P908 Phone 039,P44P-4G30291P-wwhaop.com  Member ofaGlobalAsochatlon dfindependent/ Accounting andConsutanyFms  PES.    AGENDA ITEM 8B  MEMO DATE: SUBJECT: Discussion:  January 17,2017 Financial Matters: Future Sewer Infrastructure  Funding  The Town of Sawmills currently has the ability to provide approximately 30% of its municipal area with sewer connections. Historically much ofthis infrastructure was put in place by state and federal grant dollars. The competitive nature ofthese grants has increased over the past decade and is believed to keep increasing. Almost all significant grants that are designed to serve: residential areas are tied to the income of the area a project would serve. Due to this and other factors, the Sawmills Town Council may wish toj peruse other forms offinancing for sewer  projects.  Below are three different grant/loan options for the council to discuss and consider.  1. State Project Grants/Loans-  The State Project Grant (SPG) program will have two more funding cycles which are funded by the NC Connect Bond. This program is a grant/loan combination. The current financing rate for the loan portion is less than 2%. The program has the ability to decide what percent loan versus grant dollars the applicant would receive. Iti is likely based on the application system, Sawmills would qualify fora 25% grant or less. The CWSRFis a 100% loan program. Ifthe applicant qualifies the financing rate is % of the current market rate over a 20 year period. The program offers very applicant principal There is a grant that can award up to $300,000 as part of a 50% match. This grant is designed to fund projects that have a direct economic development impact. Ift the council is interested in applying for a program that would be either be a grant/loan combination or pure loan, staff can prepare projects and ideas for the FY2 2017/2018 Budget  2. CWSRF (Clean Water State Revolving Fund Loan)-  forgiveness along with the low rate. 3. ARC (Appalachian Regional Commission)-  Retreat. Recommendation:  Staffrecommends Council discuss this matter and decide how they wish to proceed.    AGENDA ITEM9A  MEMO DATE: SUBJECT:  January 17,2017 Organizational Matter: Standing Council Committee Assignments  Discussion:  Enclosed with this memo is a copy of the updated Standing Council Committees as appointed by the Mayor. With the respect ofb being able to best serve their appointed committees, Reed Lingerfelt will now serve on the Public Works Committee and Keith Warren will now serve on With the updated appointment of Councilman Keith Warren to the Intergovernmental Committee, the council should discuss appointing Councilman Warren as the alternate delegate  the Intergovernmental Committee.  to the WPCOG Policy Board.  Recommendation: WPCOG Policy Board.  Staff suggests council make a motion appointing Keith Warren as the alternate delegate to the    Town of Sawmills  Standing Council Committees for 2017-2018  Public Works Committee Roadways & Streets Water Resources Wastewater Drainage Right-of-Ways Solid Waste  Reed Lingerfelt  Gerelene Blevins  Parks & Recreation Committee Parades, Festivals, & Special Events Civic Organizations Planning & Development Committee Land Use Regulations Zoning Extra-Territorial Jurisdiction (ETJ) Code Enforcement Law & Finance Committee Administration Budget Appropriations Audit Performance Public Health & Safety Intergovernmental Committee W.P.C.O.G. N.C.L.M. Community Colleges Chamber of Commerce Institute of Government Intergovernmental (County/State) Personnel Committee  Reed Lingerfelt  Keith Warren  Jeff Wilson  Keith Warren  Joe Norman  Reed Lingerfelt  Jeff Wilson  Keith Warren  Gerelene Blevins  Joe Norman  *The Mayor is a member of all Standing Council Committees  Updated: January 2017    AGENDA ITEM 9B  MEMO DATE: SUBJECT:  January 17,2017 Discussion: Annexation Agreement with the Town ofHudson  Discussion:  Property owner of1240 Cajah's Mountain Road (Cajah's] Mountain Quik Mart) has petitioned for a satellite annexation to be part oft the Town ofl Hudson. 1240 Cajah's Mountain Road does not fall within the statutory jurisdiction oft the Town of Hudson to allow for voluntary satellite annexation. The property is located within the statutory. jurisdiction for the Town of Sawmills. The Town of Hudson, and Sawmills to enter into an Annexation Agreement whereby the Town of Sawmills would not seek to voluntary annex the parcel located at the intersection of Cajah's Mountain Road and Hudson Cajah Mountain Road, address of 1240 Cajah's Mountain Road, specifically identified at NCPIN: 2756-36-2032 consisting of .22738 acres, and located in the current Extraterritorial Zoning Jurisdiction of the Town of Sawmills. The parcels' legal The presented draft agreement would require a public hearing in order to adopt.  description and map are enclosed.  Attachments:  Ordinance Establishing an Annexation Agreement Between the Town ofHudson and  Town of Sawmills.  Legal descriptions and maps for the property  Recommendation:  Staffrecommends Council makes a motion to schedule aj public hearing regarding the proposed annexation agreement with the Town ofHudson for February 21, 2017 during the regularly  schedule Town Council meeting.    DRAFT VERSION 12/9/16  AN ORDINANCE ESTABLISHING AN ANNEXATIONAGREEMENT BETWEEN  THE TOWN OF HUDSON and TOWN OF SAWMILLS  THAT WHEREAS, the Town of Hudson, and the Town of Sawmills, duly incorporated municipalities under the laws of the State of North Carolina, desire to enhance orderly planning by such municipalities, provide for future development including necessary infrastructure, and eliminate uncertainty in connection with said planning and future growth;  and  WHEREAS, the governing boards of said municipalities also desire to avoid potential conflict and confusion and to foster good intergovernmental relations; and WHEREAS, Chapter 160A, Article 4A Part 6, of the North Carolina General Statutes authorizes municipalities to enterintoagrements designating areas which are not  subject to annexation by the participating municipalities,  NOW, THEREFORE, BE IT ORDAINED that the participating municipalities 1. This Agreement is executed pursuant to iheauthority-of Chapter 160A, Article 4A, 2. This Agreement shallift the satellite,annexation fails to pass public hearing of either 3. The Town of Sawmills defer their statutory right by proximity to annex the following described areat See Exhibit A attached (Map), Exhibit B (Deed) and 4, The effectivedate ofthis Agreement shall be the date of adoption of the approving The Town of Samills hereby defer their right to annex 1240 Cajah's Mountain Road, specifically NCPIN: 2756-36-2332 thereby grant the Town of Hudson the right.to annex bythis Agreement for the satellite annexation area described in this 6. This Agrcement may be modified or terminated if the Town of Hudson fails to adopt the satellite annexation by public hearing pursuant to G. S. 160A-58.24(d) or ife either municipality fails to agree with this ordinance Any subsequent agreement shall be approved by ordinance before all required public hearings. 7. This writing contains the entire Agreement between the participating municipalities.  hereby agree as follows:  Part 6, ofthe North Carolina General Statutes.  Town.  ExhibitG (Boundary Map) hereto.  ordinance bythelast parucipating municipality to do SO.  Agreement pursuant to G.S. 160A-58.24(a)5).    Adopted by the Town Commissioners of Hudson on the  day of  2017.  Town of Hudson  ATTEST:  By: Mayor  Town Clerk  Adopted by the Town Council of the Town of Sawmills on the  day  2017.  TOWNOFS SAWMILLS  ATTEST: Town Clerk  By: Mayor    Workflow No, 0900050952-0001  Doc Beoorded: ID: 008798770005 11/28/2012 at Type: 02:37:16 CRP PM Fee Amt: 6226,00 $200.00 Page 1of5 Revenue Workflow# Tax: 0000050952-0001 Caldwell-countya WAYNE LE RASH Register NÇ of Doeds 1808-805-809  Rupal200. Maile after recording to Grantee: Brief Description for the index  Thipinstrument was prepared by Greome, Tuitle, Pike & Blair, RLLP  Cajah Mountain Superette NORTH CAROLINA GENERAL WARRANTY DEED  TH$ DEED made this 31 day of October, 2012, by and between  GRANTOR  GRANTEE  KIALILMAJEED and wife, JENNY MAJEED 200 Jackson Run Morganton, North Carolina 28655 IMRAN YASEEN and wife, RIWANA RAFIQ 20p) Jackson Run Morganton, North Carolina 28655  FALAK, LLC 1240 Cajahs Mountain Road Hudson, North Carolina 28638  Enterin appropriate block for each party: name, address, and, ife appropriate, character of entity, e.g., corporation The designation Grantor and Grantes as used herein shall includes said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context. WITNESSETH, that the Grantor, for a valuable consideration paid by the Grantee, the receipt of which isl hereby ackhowledged, has and by these prasents does grant, bargain, sell and convey unto the Grantee in fee simple, all  orpartnership.  5    those certain lots or parcels oflandt together witht that certain) Easement and Right ofFirst Refusal described below, situèted inl Hudson' Township, Caldwell Couniy, North Carolina and more particularly described as follows: BEGENNING on an iron stake in the North margin of the public road, a corner of the lot sold to R.] J.1 Rice from Charles A. Rice, andi runs with said Rice's line South 15 degrees East 1501 feet to an iron stake, corner of said loti in the North edge ofthe Saw) Millsa and Cajah Mountain. Road; thence with said road asf follows:South: 72 degrees West 65 feet, South 66 degrees West 100 feet, South 58 degrees 30' West 120 feet, in all 285 feet to a point in the intersection oft two: roads; thence with the center ofs said road as follows: North 34 degrees East 100 feet, North 40 degees East 100 feet, North 44 degrees East 53 feet, in all 253 feet tos a point in the center of said roadi in the old Bentiey line; thence with said old line North 87 degrees West 18 feet to an iron stake, Rice's corner on the Nortlwest side of said road, also A. V. Bentley's corner; thence with the Northwest margin of said road and Benfley's line North 49 degrees 30' East 107 feet to the! Beginning, containing % of an acre, more or less, BEINGap partoft the same property as conveyed by Orel Leel Dellinger, r. andy wife, GalP.Dellingert tol Linda S.I Farr andhusband Danny E. Farr by deed dated September 19, 1990 and recorded in Deed Book 1026 at Page 525, BEGINNING on a new %i inch pipe on the north margin of Cajah Mountain Road (SR #1130), said point being a new pornerf fort thel Linda S. Farr and] husband Davids S.Farr propertyands said) POINTOF BEGINNINGbeing! located South 76 degrees 26: minutes 13 seconds West 636.60 feet from a P.K. Nail found in the centerline of Cajah Mountain Road (SR #1130) at its intersection with Cherrywood Drive, and being located South 71 degrees 10 minutes 595 seconds' West 159.87: feet from ane existing % inch irong pipe, which is thes southwest corner ofTractlas shoyn at Plat Book 24 at Page 107 in the Caldwell County Registry of Deeds; thence from the POINT OF BEGNNING and with the north murgin of Cajah Mountain Road (SR #1130) South 72 degrees 00 minutes 00 secdnds West: 23.04 feett toap point,a a corner with that property! belonging tol Imran' Yaseen and) Khalil Majeed, a deed ofv which is recorded atl Deed Book 1703 at) Page 1572: in the Caldwell County Registry of Deeds; thence with the Yaseen and Majeed proparty North 15 degrees 37 minutes 41 seconds West 150,83 feet, crossing Hudson-Cajah Mountain Roud (SR #1131), to a point ont the northwest margin of Hudson-Cajah Mountain Road (SR #1131) and ina line with that property belonging to) James A. Hand,) r.,ad deed of which isr recorded at Deed) Book 1652 at Page 1094in the Caldwell County Registry of Deeds; thence with the Hand property North 49 degrees 30 minutes 00 seccnds East 13.51 feet to a point, a new corner for the Farr property; thence a new line for the Farr property, crossing Hudxun-CalaiMoumtain Road (SR #1131)South 190 degrees 35 minutes 16 secondsl East 30.001 feet toanew %i inch iron pipe on the south side of Hudson-Cajah Mountain Road (SR #1131), and continuing on the same beaing 125.93 foet for a total distance along this bearing of 155.93 feet tot the) POINT OF BEGINNING, containing As surveyed by Western Carolina Surveyors, P.A., T. R. Bishop, P.L.S., this the 19 day of March, 2009 and being Therei is also conveyed: from Grantor to Grantee, it's successors and assigns, that certain Right ofFirst Refusal deted February 24, 2009, and recordedi inl Book 1704, Page 1683, Caldwell County Registry, reference to which is hereby There is also conveyed from Grantor to Grantee, it's successors and assigns, that certain Easement Grant dated February 23, 2009, andi recorded inl Book 1703, Page: 1574, Caldwell County Registry, reference tos which isl hereby Thedrafter oft this instrument. has not checked title tot the above described property and makes no certification ast to  TRACTO ONE:  Caldwell County Registry. TRACTTWO:  0.063 acres by coordinates. theifJOB #8661.  made for morej particular description, made for more particular description.  title!    Thelabove described property does noti include the primary residence of Grantor,  Thepropertyl hereinabove described was acquired by Grantor byi instrument recorded inl Book 1703, Page 1572. TOFAVE ANDTOHOLD the aforesaid. lot or parcel ofl lande ande all privileges anda appurtenances' theretol belonging And the Grantor covenants with the Grantee, that Grantor is seized oft the premises in fee simple, has the right to conyey the samei ini fees simple, that titloi isi marketable andi free and clear of alle encumbrances, and that Grantor will warrant and defend the titie against the lawful claims of all persons whomsoever except for the exceptions Title tot the property hereinabove described is subject toi the following exceptions: Street and Ullity Easements of IN/WITNESS WHEREOF, the Grantor has hereunto set his) hand and seal, or if corporate, has caused this instrument tob bes signed ini its corporate namel byi its dulys authorized officers and its seal tob be hereunto affixed  tot the Grantee in fee simple. heréinafter stated.  recdd, or visible upon thej premises; applicable restrictive covenants of record.  byjauthority ofi its Board ofI Directors, the day and year first above writtery  (SEAL) (SEAL)  (SEAL) (SEAL)  Imran' Yaseen Za Rizwana h-b Rafiq  eo Khaltivtajeed wApd  Majeei  SEAL-STAMP  NORTH CAROLINA COUNTY OF Baoweh Burke  Icertify thati thei following person(s) personally appeared before met this day, and (I have personall knowledgeofthei identity oft the principalls)have: seen satisfactorye evidence oft thep principal's identity, bya acurrent state ori federali identification with the principal's photograph int thei form ofa N.C. Driver's License - )(a credible witness has sworn to the identity of the principal's); each acknowiedging to me that he or she lunterily signed the foregoing document for the purpose stated therein and in the  indicated: Khalill Mujeed, Grantor.  SmupSonill Official Signalure of Notary Snow A. Sherrill Notary's printed ort typed: name, Notary Public Mur rommiacinn avnivag 1/19/14   ag KE COU set (Official Seal)    NORTHCAROLNA COUNTYOF. Caidwell  SEAH-STAMP  Icertify that the: following person(s) personally appeared before me this day, and (I have personal knowledge oft the identity of the principal(s)) (I have seen satisfactory evidence of the principal's identity, by a current state or federal identification with the principal's sworh tot thei identity oft thep principal's); each acknowledging to met that he or sher voluntarily signed the foregoing document: for thej purpose stated therein and in the capacity indicated:  photograph in the form ofa_ NCDL Jenny. A. Majeed, Grantor.  J(ac aredible witness has  Date: I0-31-12 hmsmauy  Official Signature ofNotary Notary's printed or typed name, Notary Public  a SMA NOTARY Hey ELL COUNTI  Ann 5 MOun  My commission expires: 01-21-2013  NORTH CAROLINA COUNTY OF Burke  SEA-STAMP  Icertify that the following person(s) personally appeared before me this day, and (I have personal knowledge of the identity of the principal(s)) (I have seen satisfactory evidence of the principal's identity, by a current state or federal identification with the principal's photograph int thei form ofa N.C.Driver's License J(a credible witness has sworn tot thei identity ofthe principal's); each acknowledging tor met that he ors she voluntarily signed the foregoing document for thej purpose stated therein and ini the capacity indicated:  Imran Yaseen, Grantor. Date: 10/31/12  brurshonill Official Signature of Notary Snow A. Sherrill Notary's printed or typed name, Notary Public   PUBIP  imission expires: 1./19/14    NORTHCAROAINA COUNTYOF Cadueil  SEAI-STAMP  Icertify that the following person(s) personally appeared before me this day, and (I have personal knowledge of the identity of the principal(s)) (II have seen satisfactory evidence of the principal's identity, by a current state or federal identification with the principal's sworn tot thei identity oft thej principal's);e each acknowledging to met that! he or she voluntarily signed the foregoing document fort the purpose stated therein and int the capacity indicated:  photograph int the form ofa NCDL Rizwana. Rafig, Grantor.  J(a credible witness has  Date: 10-31-12 Amu 5Man  Official Signatuleofl Notary AmnsMoin Notary's printed ort typed name, Notary Public  S-Ma NOTARE Dficpispal) PUBLIC COUN  My commission expires: 01-21-2013    NIOHOH  OuNITdor  HW SJONAVW  4on 73503 Td TR  &  DG> MEEHO BEGMOdNNS 3117  M  /  de a S de S  QHNLSNV  TULIPCI TTIENS    AGENDA ITEM 9C  MEMO DATE: SUBJECT:  January 17,2017 Discussion:  811 Contract Agreement  Discussion:  Enclosed with this memo is a membership contract from North Carolina 811, Inc. North Carolina 811, ,isan non-profit which uses locate information from anyone engaged in excavation activities. The information about proposed excavation is transmitted to the member facility owners (such as the Town of Sawmills) that provide service in the requested excavation area. The town would then have three (3) days to locate and mark any infrastructure in the area to be excavated. Asa service provider within such a small area, the Town of Sawmills is required by the Underground The cost of participating in the program would be a minimum of $25.00 ai month, or $0.80 a call, whichever is greater. The funds are available for the remainder of the fiscal year within the  Utility Safety and! Damage Prevention Act (S 87-115- S 87-130).  Water Department budget. Recommendation:  Staffrecommends Council approve the contract and service agreement with North Carolina 811.    North Carolina 811, Inc. Membership Agreement  THIS MEMBERSHIP AGREEMENT ("Agreement") is entered into this the ("Notification Center"), a North Carolina not-for-profit corporation, and the Townof  day of  2016, by and between North Carolina 811, Inc.  Sawmills ("Member").  Recitals  Notification Center is a North Carolina not-for-profit member-owned corporation. Notification Center is sponsored by facility operators to receive and transmit to its members Notices of planned excavations, Design Notices, Emergency Notices and Damages, as contemplated by the Underground Utility Safety and Damage Prevention  Act, N.C. Gen. Stat S 87-115 et seq. (the "Act").  DEFINITIONS:  As used in this Agreement, the following terms have the meanings indicated "Notification Center" shall have the meaning set forth in N.C. Gen. Stat. S 87- "Utility Member" and/or "Operator" shall have the meaning set forth in N.C. Gen. "Locator" shall have the meaning set forth in N.C. Gen. Stat. S 87-117(13); "Facility" sha!l have the meaning set forth in N.C. Gen. Stat. S 87-117(12); "Operator" shall have the meaning set forth in N.C. Gen. Stat. S 87-117(18); "Associate Member" shall mean any person or entity that furnishes goods or services to any Operator, and other persons and entities that have an interest in the prevention of damage to any Facility and the promotion of safe excavation practices. "Damage" shall have the meaning set forth in N.C. Gen. Stat. S 87-117(4); "Excavate" or "Excavation'" shall have the meaning set forth in N.C. Gen. Stat. S Transmission" shall mean the notification given by Notification Center to Member or Member's designated Locator of an Excavation, Design Notice, Damage  below: 117(17);  Stat. S 87-117 (18);  87-117(13);  and/or Emergency;  1  LOCAL GOVERNMENT    "Notice" shall have the meaning set forth in N.C. Gen. Stat. S 87-117(16); "Design Notice" shall have the meaning set forth in N.C. Gen. Stat. S 87-117(7); Emergency" shall have the meaning set forth in N.C. Gen. Stat. S 87-117(8). Other terms used in this Agreement, but not defined herein, shall have the meaning set  and  forth in the Act.  Notification Center has three categories of members, as follows:  (a) Category One members are Operators; (b) Category Two members are Locators; (c) Category Three members are Associate Members.  Member has applied to become a Category One member of Notification Center. Member represents herein that it is entering into this Agreement on its own behalf and In consideration of the Recitals and the mutual covenants and promises contained 2. Term. This Agreement shall be effective from and after the date hereof and shall continue in effect until such time as either party terminates this Agreement, in accordance with the provisions regarding termination of membership contained in the Bylaws of Notification Center in effect as of the date of the execution of this Documents. Member acknowledges receipt of copies of the Articles of Incorporation and Bylaws of Notification Center, attached hereto, and agrees to abide by all of the terms and provisions thereof. Notification Center retains the authority to amend the Articles of Incorporation and Bylaws from time to time through lawful action of Notification Center's duly authorized Board of Directors. Amended versions of the Notification Center's Articles of Incorporation and Bylaws shall be posted on the Notification Center's website, www.nc811.org, or  that it has authority to enter into this Agreement. herein, the parties hereby agree as follows:  Agreement.  3.  otherwise distributed to Member.  4. Fees and Charges. Member agrees to timely pay either (a) the transmission fees charged by Notification Center to Category One members, or (b) the annual membership fees charged by Notification Center to Category One members, as established from time to time by the Board of Directors of Notification Center. Duties of Category One Members. Member shall provide to Notification Center an electronic database in a format acceptable to Notification Center that contains ar reasonable, detailed description of Member's Facilities located within the  5.  2  LOCAL GOVERNMENT    geographic areas in North Carolina as to which Notification Center is to provide Member notification of each Transmission ("Notification Area"). Member shall provide Notification Center with an update of the electronic database of its Notification Area on an annual basis, at a minimum. Member shall comply with all ofi its obligations pursuant to the Act as to Notification Center. Duties of Notification Center. The Notification Center shall provide the necessary personnel, equipment and a toll-free telephone number for the receipt of Notice of each Transmission within the Notification Area. Notification Center will maintain records of receipt of each Transmission in the manner and duration required by the Act. Notification Center shall promptly relay to Member and/or its designated Locator each Transmission received within Member's Notification Area. Notification Center shall comply with all of its obligations pursuant to the Indemnification. To the extent permitted by North Carolina law, Member agrees toi indemnify, save and hold harmless Notification Center, its officers, agents and employees, from and against any and all liabilities, claims, losses, damages, expenses (including reasonable attorneys' fees), or costs for personal injuries and/or property damage arising out of (1) any Transmission within Member's Notification Area, (2) any marking, or failure to mark, the location of any Facility of Member, (3) any Excavation by any person which injures or damages any Facility of Member, unless such losses, damages or injuries shall be caused by the intentional wrongdoing or negligent act or omission of the Notification Center, provided further that such liability, claim, loss, damage, expense or cost for which Member is required to indemnify Notification Center arises out of acts for which the defenses of governmental immunity, statutory or common law immunity is not available. The indemnification provided by Member herein shall not be construed as a waiver of any applicable defense of governmental, statutory, or common law immunity, and shall not prevent the Member from asserting any defense of such immunity; and if a court of competent jurisdiction determines that no such immunity applies, then the indemnity provided for herein shall apply to the extent No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person other than the Parties and their respective successors Succession and Assignment. Member may not assign this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of Notification Center. Notwithstanding the foregoing, Member may assign its rights, interests and obligations hereunder, without approval of Notification Center to the parent, subsidiary, or affiliate of Member, or to any entity into which Member is merged or to which Member sells all or substantially all of its assets. Notification Center may not assign, sublet, or transfer its interest, duties, or obligations hereunder, without the prior written consent of Member. This  6.  Act as to Member.  7.  enforceable under North Carolina law.  8.  and permitted assigns.  9.  3  LOCAL GOVERNMENT    Agreement shall be binding upon and inure to the benefit of the parties and their 10. Notices. Any notice, request, demand, claim or other communication hereunder ("Notice") sha!l be in writing. The term "Notice," as used in this section, shall not include or apply to a Notice of Excavation, Emergency, Damage and/or Design Notice. Any contractual notice may be given by any method listed below and shall be deemed received on the date stated to the right of each such method, as  respective successors and permitted assigns.  follows: Personal delivery: Overnight courier service, charges prepaid: Facsimile transmission:  Upon delivery  One business day after receipt by addressee as shown on the records of the The next business day following the date of transmission as shown on the sender's Date of delivery as shown on return receipt  courier service  records  Registered or Certified U.S. Mail, Return Receipt Requested, postage prepaid: Any notice shall be addressed as follows:  Ifto Notification Center:  2300 W. Meadowview Road Suite 227 Greensboro, NC 27407 Attn: Executive Director Town of Sawmills 4076 US Highway 321A Sawmills, NC 28630  Ifto Member:  Either Party may change the address to which contractual Notices are to be delivered by giving the other Party contractual notice in the manner herein set forth to the address herein stated, or as subsequently and correctly amended per 11. Governing Law. All matters relating to this Agreement shall be governed by the laws of the State of North Carolina, without regard to its choice of law provisions, and venue for any action relating to this Agreement shall be Guilford County Civil Superior Court or the United States District Court for the Middle District of North  the terms of the Agreement.  Carolina.  4  LOCAL GOVERNMENT    12. Amendments and Waivers. No amendment or waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by both parties. No waiver of breach or violation of any provision shall be deemed to extend to any prior or subsequent breach or violation of the same or any other provision, or affect, in any way, any rights arising by virtue of any prior or  subsequent breach of warranty or violation.  13. Entire Agreement. This Agreement constitutes the Entire Agreement between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they 14. Severability, If any provision of this Agreement is deemed invalid, illegal or unenforceable by a court of competent jurisdiction, such provision shall be deemed stricken and the remainder of this Agreement shall remain in full force 15. E-Verify Compliance. Notification Center shall comply with E-Verify, the federal E-Verify 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 of newly hired employees pursuant to federal law and as in accordance with N.C.G.S. S 64-25 et seq. In addition, to the best of Notification Center's knowledge, any subcontractor employed by Notification Center as a part of this Agreement, shall be in compliance with the requirements of E-Verify and N.C.G.S. S 64-25 et seq. Notification Center shall [THE REMAINDER OF THIS PAGE REMAINS BLANK INTENTIONALLY)  relate in any way to the subject matter hereof.  and effect to the fullest extent permitted by law.  execute an E-Verify affidavit, which is attached hereto.  5  LOCAL GOVERNMENT    IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives effective as of the date first written above.  This instrument has been pre-audited in accordance with N.C. Local Government. Budget and Fiscal Control  Town of Sawmills (Name of Member) (Signature) Type or Print Name  (SEAL)  Act.  By:  (Signature of Finance Officer)  Name/Title Date: Approved as to form and legality, Name/Title Date:  Title Date:  North Carolina 811, Inc. (SEAL)  By:  (Signature) Louis Panzer (Type or Print Name) Title: Executive Director  6  LOCAL GOVERNMENT    The application of Town of Sawmilis as a Category One member of North Carolina  811, Inc. is hereby approved.  This is  day of  2016.  On behalf of the Board of Directors of North Carolina 811, Inc.  (Signature) Lyman M. Horne (Type or Print Name) Board President Title  7  LOCAL GOVERNMENT    AGENDA ITEM 10A  MEMO DATE: SUBJECT:  January 17,2017 Updates: Code Enforcement Monthly Report  Discussion:  The attached report shows the progress that Planner Leslie Meadows continues to make  throughout the town. Recommendation: No Council action required.