LOUISBURG NORTH CAR OLIN A Charming Since. 1779 AGENDA LOUISBURG TOWN COUNCIL OPERATIONS CENTER July 18, 2022 1. Roll Call Rogers 2. Invocation Mayor 3. Pledge of Allegiance Mayor 4. Adoption of Agenda Mayor 5. Approval of] Minutes Mayor a. June 13, 2022 Special Called Meeting b. June 20, 2022 Regular Meeting 6. Public Hearing: a. Rezoning of Parcel ID 017199 from SHOD to PDD Slayter At Fox Park Road and US Hwy 401 S b. Zoning Text Amendment Modifying the Height Limit in PDDs C. Subdivision Text Amendment Allowing Public Roads in PDDs 7. Ordinance to Amend the Town's s Zoning Map for Parcel 017199 Slayter from Special Highway Overlay District (SHOD) to Planned Development District (PPD). 8. Ordinance to Adopt Zoning Text Amendment Modifying the Height Slayter Limit in PDDs 9. Ordinance to Adopt Subdivision Text Amendment Allowing Public Slayter Roads in PDDs 10. Award of Upset Bid for a Portion of Land at 115 Industrial Drive Slayter 11. Audit Contract 2021/2022 Barlow 12. Real Estate Acquisition - 124 North Main St. Barlow 13. Consideration To Accept GWP Developers for Depot Hill Study Barlow LOUISBURG NORTH CAROLINA Charming Since 1779 14. Discussion of a Code of Ethics for All Town Officials Barlow 15. Administrator's Report Barlow 16. Mayor's Report Mayor 17. Police & Fire Report Barlow 18. Public Comment Mayor 19. Council Comments Mayor 20. Adjourn MINUTES SPECIAL CALLED MEETING LOUISBURG TOWN COUNCIL June 13, 2022 The Town Council met on Wednesday, June 13, 2022 at 5:30 PM at the Operations Center. Mayor Christopher Neal and Council Members Silke Stein, Emma Stewart, Bobby Dickerson and Betty Wright were present. Council Member Mark Russell was absent. Following roll call, Mayor Neal ask Council Member Betty Wright to give the Invocation. After the Invocation, Mayor Neal led the Council and audience in the Pledge of Allegiance. With the conclusion of the Pledge of Allegiance, Mayor Neal recognized Mr. Slayter to begin his briefing to the Council regarding Louisburg Falls. Mr. Slayter began his remarks by providing a short explanation of how the Planned Development District (PDD) worked defining it as a "floating zone" VS. the standard zoning district. He continued with stating that the site plan of the PDD functioned as the government element just like the standards found in a typical zoning district. He further stated that all the elements that someone would find in the zoning ordinance are customized to the site plan proposed. He cited the most common elements including: landscaping, parking, signage, land use, open space, utility provision, setbacks and density among others. After providing this overview, Mr. Slayter started his review of the "governing document" for Louisburg Falls, generally following the Table of Contents, providing commentary on each section. He restated that the goal of today was to "present the proposal as submitted" as not to offer any discussion about the staff's views of the project. He said that would be provided in the form of a staff report attached to their Council agenda packet. He concluded his remarks by noting that one element ofthe project that remains to be resolved is the reserve strip or 'spike" strip which prohibits the Developer from connecting to the signal at Retail Way. He indicated that while the Developer is working toward a resolution, it may require Council to step in and address through an eminent domain action. After his remarks, Council acted to adjourn. Motion to adjourn was made by Council Member Stein with a second by Council Member Clancy. Motion passed without objection. - - Philip Slayter, Acting Clerk to Council MINUTES LOUISBURG TOWN COUNCIL June 20, 2022 The Town Council met on Monday, June 20, 2022 at 7:30 PM at the Town's Operations Center. Mayor Christopher Neal, Interim Town Administrator Jon Barlow, Assistant Town Administrator Ray Patterson, and Council Members Betty Wright, Emma Stewart, Bobby Dickerson, Mark Russell, Tom Clancy and Silke Stein were present. Mayor Christopher Neal welcomed everyone and opened the June Regular Town Council meeting. Following the roll call, Council Member Wright gave the invocation. PLEDGE OF ALLEGIANCE Mayor Christopher Neal asked everyone to rise for the Pledge of Allegiance to the United States. ADOPTION OF THE AGENDA Mayor Neal called for a motion to adopt the agenda. A motion was made by Council Member Russell to amend the agenda to move Public Comments to before Council Comments as a permanent order of events. The motion was seconded by Council Member Clancy. Motion passed without objection. APPROVAL OF THE MINUTES Mayor Neal called for a motion on the minutes of the March 17 (Corrected), May 16 regular Town Council meeting, May 19, May 27, and June 1 Special Called meetings following their review. Council Member Wright made a motion to approve the minutes of the all forementioned reports collectively seconded by Council Member Dickerson. The motion passed without objection. PUBLIC HEARING: Council Member Clancy made a motion to enter into the Public Hearings segment of1 the Council meeting; seconded by Council Member Stewart. The motion passed without objection. Mayor Neal asked if there were any questions from the public regarding the Fiscal Year 2022- 2023 Budget; there were none. Council Member Clancy made a motion to close the public hearing on the budget; seconded by Counçil Member Wright. The motion passed without objection. Council Member Russell made a motion to open the Public Hearing on Rezoning to PDD for Louisburg Falls; seconded by Council Member Clancy and passed without objection. Mayor Neal turned the discussion over to Planning Director Philip Slayter. Mr. Slayter stated that this would be a special briefing on specific topics; the Town Council and the public had been previously briefed on the mechanics of the project for Louisburg Falls. Louisburg Falls is a multiple use development offering the opportunity to live, work, and play in one community. Mr. Slayter advised the Council that he had received a letter from The Capltal Group of the NC Sierra Club requesting that the Council deny the rezoning proposal stating that the current proposal would have "a severe negative impact on the environmental integrity and housing affordability of the region". Council Member Russell asked Mr. Slayter if the Sierra Club had expressed any opposition when Walmart was built across from this site; he stated that it had not. Council Member Russell asked for clarification on the "spike" strip; a reserved strip of land approximately 18-20 feet wide and less than 1800 feet long at the intersection of US 401 S and Retail Way. This strip of land is a key element to the circulation plan to allow traffict to enter and exit the development. Mr. Slayter stated that this project only actually needs approximately 60 feet of this land. Council Member Stein verified that the expansion of US 401 S would not impact this project. Council Member Stewart asked how many floors would be in the parking deck and how many spaces would it provide for the community. The developer explained that this would be a "tabletop" parking deck meaning that it will not be a ramped parking deck. It will be two stories with an entrance/exit on each floor. Following the discussion, the floor was opened to the public for questions. The public concerns were regarding the types of retail stores that would be located in the community, the type of recreation that would be avallable in the community, and traffic concerns. The public was informed that Louisburg Planning and Zoning Administrator Philip Slayter and the developers would be available while the Council was in Closed Session to answer questions. Mrs. Fannie Perry, Chair of Louisburg Planning Board, advised the Council and the public that she had recused herself from this development project due to her being a landowner ofadjacent land. Council Member Stewart made a motion to close the public hearing regarding Louisburg Falls; seconded by Council Member Stein. The motion passed without objection. Council Member Wright made a motion to adopt the Fiscal Year 2022-2023 Annual Budget; seconded by Council Member Stein. The motion passed without objection. BLANKET BUDGET AMENDMENT FISCAL YEAR 2021-2022 Louisburg Finance Director Sean Medlin asked the Council to pre-approve budget amendments necessary to close out the 2021-2022 fiscal year. Mr. Medlin stated that he was not sure ofthe exact amount necessary at this time. Council Member Wright made a motion to approve the necessary budget amendments to close out the 2021-2022 fiscal year. The motion was seconded by Council Member Dickerson and passed without objection. ORDINANCE TO AMEND THE TOWN'S ZONING MAP, PARCEL 017199 FROM SHOD TO PDD Louisburg Planning Administrator Philip Slayter presented a request for a Zoning Ordinance Map Amendment to change the zoning of Franklin County Tax Parcel 017199 from Special Highway Overlay District to Planned Development District. Global Real Estate Strategies, Inc is seeking to rezone 45 acres at the intersection of US 401 S and Fox Park Road for developing a multiuse project. The project was previously reviewed byi the Planning Board and is now before the Council for consideration. Council Member Stewart read the following motion to adopt Ordinance No. 2022-7, to amend the Town's Zoning Map for Parcel 017199: "I move that the parcel identified by Franklin County Tax ID Numbers 017199 be approved for rezoning from the Special Highway Overlay District (SHOD) to a Planned Development District (PDD) given the findings for this request are consistent with the 2030 Louisburg Comprehensive Plan and shown to be in the public interest as the project conforms with the Town's economic needs, and moreover to be found reasonable as this will result in a more logical and orderly development pattern". . This motion was seconded by Council Member Russell. The motion passed without objection. 2021 LOCAL WATER SUPPLY PLAN UPDATE Interim Town Administrator Jon Barlow reported to the Council that the Town of Louisburg had received al letter from the Division of Water Resources stating that the 2021 Local Water Supply Plan (LWSP) update was complete and the system meets the minimum criteria established by the State of North Carolina. Council Member Stein made a motion to adopt the 2021 LWSP Update; seconded by Council Member Dickerson. The motion passed without objection. TOWN FACILITIES AND PARK RESERVATION PROCESS UPDATE Interim Town Administrator Jon Barlow advised that the Town did not have a written system for managing requests to use Louisburg public facilities and park shelters. Assistant Town Administrator Ray Patterson stated that when the Operation Center is rented clean-up is the responsibility of the renter. They must clean the tables, sweep and mop the floors, and bag all garbage. Town staff will pick up the garbage. Staff of the Operation Center will inspect the venue for damage before and after the event. Council Member Stewart made a motion to approve the use of the application forms and the proposed fee schedule; seconded by Council Member Wright. The motion passed without objection. BULLOCK STREET WATER LINE PROJECT UPDATE In reference to the last topic of discussion Assistant Town Administrator Ray Patterson clarified that the Fire Department oversees the Training Center. He advised that the 8-inch water line has been connected to 12 houses as well as to Louisburg Elderly Apartments. Three fire hydrants have also been connected to the water line system. The Bacteria Water test failed showing that there was not enough Chlorine and it has been retested. If it passes this time the water line should be fully operating in two to three weeks. There is no Council action necessary at this time. DISCUSSION OF THE TOWN ADMINISTRATOR SEARCH PROCESS Interim Town Administrator Jon Barlow advised that individual Job descriptions are being updated and that Becky Veazey from the MAPS Group is available to help guide the Council in the search for a permanent Town Administrator. ADMINISTRATORS REPORT Interim Town Administrator Jon Barlow reviewed his written report including an update on the Depot Hill Project and stated that a Request for Qualifications (RFQ) was prepared as directed at the May 2, 2022 Town Council meeting. In an effort to solicit as many bids as possible, it has been posted and mailed to several sources and developers. The deadline to receive the bids has been set as July 5, 2022. Mr, Barlow also announced that the new Town of Louisburg website went live on Friday, June 17, 2022. MAYOR'S REPORT Mayor Neal reported that the BBQ in the Burg was a great success. Some of the cooks had been here in years past and think that a cook off is a great idea. The Friday Night on the Tar Concert Series continues to be great fun. POLICE REPORT Council Members took this item for information. FIRE REPORT Council Members took this item for information. PUBLIC COMMENTS Mayor Neal opened the meeting for public comment allowing citizens a maximum of three (3) minutes to speak. A citizen rose and expressed his appreciation for the trash removal around the intersection of Averitte and Hill Streets. Ms. Ann Brown of 301 Edgewood Drive expressed her disappointment in the ground maintenance of Oakwood Cemetery, She asked where the access fee for the sites goes in the budget and Mayor Neal said that she could go by Town Hall to get her questions and concerns addressed. COUNCIL COMMENTS Mayor Neal called for any comments by Council Members. Council Member Dickerson stated that he had been to see the work being completed on the firing range. He said that it was one oft the best ranges hel has seen and hei is proud ofit for the Louisburg Police Department, Council Member Stein said that she had seen the new tools that the Louisburg Fire Department had recently purchased. She also thanked everyone who had attended the BBQ in the Burg. Council Member Russell commented that he appreciated Assistant Town Administrator Ray Patterson updating Council Members during the recent power outage sO that they could pass the information on to the citizens who contacted them for information. CLOSED SESSION Council Member Stewart made a motion for the Council Members to move to Closed Session for the purpose of a Discussion of Personnel per NCGS 143-318.11(a)(6); seconded by Council Member Russell. The motion passed without objection. RETURN TO OPEN SESSION Council Member Russell made a motion to re-enter into Open Session; seconded by Council Member Stein. The motion passed without objection. Mayor Neal announced that there was no action taken while in Closed Session. ADJOURNMENT Council Member Russell made a motion to adjourn with Council Member Stein giving a second. Motion passed without objection. Submitted dor Oew Lori Rogers, Temporary Town Clerk TOWN LOUISBURG - NO R TH H CARO LIN N A Charming Since. 1779 TO: TOWN COUNCIL FROM: Philip Slayter, Planning Administrator DATE: July 14, 2022 RE: Zoning Ordinance Map Amendment REQUEST: Proposed Zoning Map Amendment to change the zoning of Franklin County Tax Parcel 17199 from the Special Highway Overlay District to Planned Development District. BACKROUND: A developer, Global Real Estate Strategies, Inc., is seeking to rezone 45 acres at the intersection of US 401 and Fox Park Road from the Special Highway Overlay District (SHOD) to a Planned Development District (PDD) for developing a multi-use project that includes residential, commercial, institutional, recreation and light industrial uses. The project has been reviewed by the Planning Board in April and is now before Council for a second hearing and adoption. This second hearing is to validate the public notice process. STAFF RECOMMENDATION: Approval of the rezoning as amended. PLANNING BOARD RECOMMENDATION: Approved by a vote of 7 - 0, April 14, 2022 PREVIOUS COUNCIL ACTION: Approved Unanimously, June 20, 2022 At the Adoption of the Ordinance REQUIRED MOTION TO BE READ AS FOLLOWS: "I move that the parcel identified by Franklin County Tax ID Numbers 017199 be approved for rezoning from the Special Highway Overlay District (SHOD) to a Planned Development District (PDD) given the findings for this request are consistent with the 2030 Louisburg Comprehensive Plan and shown to be in the public interest as the project conforms the with Town's economic needs, and moreover to be found reasonable as this will result in a more logical and orderly development pattern". AS A MATTER OF COUNCIL RECORD, the following motion was given by Town Council on June 20, 2022 and July 18, 2022. Lori Rogers, Temporary Town Clerk ORDINANCE NO. 2022- [An Ordinance to Amend the Town of Louisburg's Zoning Map.] WHEREAS: 1. The North Carolina General Statues authorize a municipality to adopt Zoning Ordinances in order to regulate the development and use ofland; and 2. North Carolina General Statues authorize the amendment of local Zoning Ordinances; and 3. The Town of Louisburg has duly adopted a Zoning Ordinance and hereby finds it favorable to amend the Ordinance; and 4. Global Real Estate Strategies requests Council to rezone 45 acres ofland identified as Franklin County Tax Parcel 017199 from the Special Highway Overlay Zone (SHOD) to Planned Development District (PDD). 5. The Louisburg Planning Board voted on April 14, 2022 to recommend in favor oft the request on the basis of consistency with Louisburg 2030 Comprehensive Plan; and 6. The Louisburg Town Council, while considering the zoning map amendment, has found that the request and subsequent map amendment is consistent with the goals and policy recommendations cited in the Louisburg Comprehensive Plan, because this area is to be developed as a multi-use district, and that the 2030 Plan recognizes the need for such a use in this location to serve its citizens; and 7. The Louisburg Town Council has found that the rezoning request is reasonable and in the public interest because the proposed use will result in a more logical and orderly development pattern. NOW THEREFORE BE IT RESOLVED BY THE TOWN OF LOUISBURG TOWN COUNCIL DULY ASSEMBLED THAT: 1. Amends the Louisburg Zoning Ordinance in the form of a Map Amendment as follows: Franklin County Tax ID Parcel 017199 located at the intersection of US 401 S and Fox Park Road to be rezoned from the Special Highway Overlay District (SHOD) to Planned Development District (PDD). 2. All provisions of other Town Ordinances in conflict with this Ordinance are hereby repealed. 3. If any provision of this Ordinance or the application thereoft to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application and to the end, the provisions of this Ordinance are severable. ATTEST: SIGNED: Lori Rogers, Deputy Town Clerk Christopher L. Neal, Mayor DATE TOWN LOUISBURG II NOI R TH CAROI LI N A Charming Since 1779 TO: TOWN COUNCIL FROM: Philip Slayter, Planning Administrator DATE: July 14, 2022 RE: Zoning Ordinance Amendment REQUEST: Proposed Text Amendment to modify the height limits in the PDD zoning classification. BACKROUND: The current language in the text limits structures (buildings) to 35 feet in height. This was a carryover from language that was present in the ordinance that cross cuts all the other zoning districts. At the time the new PDD zoning classification was proposed, the likelihood of any structures being proposed exceeding 35 feet was low. Many of the current development proposals that are being discussed with staff have highlighted concepts where structures exceed that height cap. In light of the changing character of development concepts coming forth as part of these multi- use projects, the need for flexibility with height will be important especially where buildings may have many uses present in the same structure. While staff is aware of the need of fire protection, most modern buildings have robust fire-suppression systems that can address height concerns. STAFF RECOMMENDATION: Amend Section 13 Districts, Part 12. Planned Development District, Part b.4 to read as follows: "No Maximum Height Limit". PLANNING BOARD RECOMMENDATION: The Planning Board met on April 14, 2022 and recommended that the height limit be set at 75 feet instead of no limit. The basis oftheir action was a concern that projects proposed in other locations would not be compatible with their surroundings. In summary, the 75 foot limit could easily accommodate any local need at the present time. ORDINANCE NO. 2022- [A Ordinance to Amend the Town of Louisburg's Zoning Ordinance, Section 13, Part 12. Planned Development District, Height Limits".] WHEREAS: 1. The Louisburg Zoning Ordinance sets a height limit of35 feet in the Planned Development District; and 2. Because of changes in development practices and attention to increased density for residential development, new construction has trended toward taller buildings for accommodating such uses; and 3. The 2030 Louisburg Comprehensive Plan supports increased development densities particularly where multi-use projects are sited requiring the need for taller structures to accommodate such design proposals; and 4. After review of the above issue, an amendment to the Town ofLouisburg Zoning Ordinance, Sections 13, Part 12, Planned Development District, Part b.4 was approved by the Town ofLouisburg Planning Board on April 14, 2022 recommending a building height limit of75 feet for the PDD zoning classification. NOW THEREFORE BE IT RESOLVED BY THE TOWN OF LOUISBURG TOWN COUNCIL DULY ASSEMBLED THAT: 1. Amend Section 13, Part 12, Planned Development District, Part b.4 to read: "Maximum Height: 75feet" 2. All provisions of other Town Ordinances in conflict with this Ordinance are hereby repealed. 3. In any provision oft this Ordinance or the application thereof to any person or circumstance in held invalid, the invalidity does not affect other provisions or applications oft the Ordinance which can be given effect without the invalid provision or application and to the end, the provisions of this Ordinance are severable. ATTEST: SIGNED: Lori Rogers, Temporary Town Clerk Christopher L. Neal, Mayor DATE TOWN LOUISBURG III NC O RTI H CAROLIN, A Charming Since. 1779 TO: TOWN COUNCIL FROM: Philip Slayter, Planning Administrator DATE: July 14, 2022 RE: Subdivision Ordinance Amendment REQUEST: Proposed Text Amendment to Subdivision Ordinance to Allow for Private Roads in a Planned Development District (PDD). BACKROUND: At the time the Subdivision Ordinance was adopted the inclusion of the Planned Development District (PDD) in the Town's Zoning Ordinance had not occurred. As the application of the Planned Development District is generally for multi-use projects, it is not unçommon to have a range of street designs that include both public and private streets. A separate issue, but equally important to the Town, is the cost of maintenance of the road system if all the roads in the project were public. With the majority the roads private then the cost is passed along to the Developer to maintain reducing the financial impact to the Town long-term. The following three (3) amendments to the Subdivision Ordinance for this provision only apply to properties zoned as a PDD. STAFF RECOMMENDATION: Amend Chapter 21, Article I, Section 21-93 (a) (2) to read: Lots shall front on a public right-of-way and paved public street, whereas lots within any Planned Development District (PDD) zoning classification may. front on a privately owned and maintained paved road. Amend Chapter 21, Article I, Section 21-97 (1) (a) to read: All publicly dedicated roads shall meet both the.... Amend Chapter 21, Article I, Section 21-97 (1) (b) to read: All roads that extend to adjacent properties shall be designated as public roads; whereas within Planned Development District zoned properties, private roads may be allowed. PLANNING BOARD RECOMMENDATION: Approved as submitted, April 14, 2022 ORDINANCE NO. 2022- [An Ordinance to Amend the Town of Louisburg's Subdivision Ordinance, Chapter 21, Division V: Design of Subdivisions, Sections 93 and 97] WHEREAS: 1. The Louisburg Subdivision Ordinance currently does not permit private roads in subdivisions regardless of their zoning designation; and 2. Trends in development project designs are moving toward greater reliance on private maintenance and controls for common areas and roads within multi-use projects; and 3. In response to this trend, The Town ofLouisburg seeks to modify the subdivision standards to permit private roads only in the Planned Development District zoning classification, and 4. After review oft the above issue, the following amendments to permit private roads in developments with PDD zoning was unanimously approved by the Town of] Louisburg Planning Board on April 14, 2022. NOW THEREFORE BE IT RESOLVED BY THE TOWN OF LOUISBURG TOWN COUNCIL DULY ASSEMBLED THAT: 1. Chapter 21, Article 1, Section 21-93 (a) (2) oft the Town of Louisburg Subdivision Ordinance is hereby amended to read as follows: "Lots shall front on a public right-of-way and paved public street, whereas lots within any Planned Development District (PDD) zoning classification may. front on a privately owned and maintained, paved road. 1 2. Chapter 21, Article 1, Section 21-97 (1) (a) ofthe Town of Louisburg Subdivision Ordinance is hereby amended to read as follows: "All publicly dedicated roads shall meet both the... 3. Chapter 21, Article 1, Section 21-97 (1) (b) ofthe Town ofLouisburg Subdivision Ordinance is hereby amended to read as follows: "All roads that extend to adjacent properties shall be designated as public roads; whereas within Planned Development District zoned properties, private roads may be allowed." 4. All provisions of other Town Ordinances in conflict with this Ordinance are hereby repealed. 5. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application and to the end, the provisions of this Ordinance are severable. ATTEST: SIGNED: Lori Rogers, Temporary Town Clerk Christopher L. Neal, Mayor DATE TOWN LOUISBURG III NO RTE H CAROLIN A Charming Since 1779 TO: TOWN COUNCIL FROM: Philip Slayter, Planning Administrator DATE: July 14, 2022 RE: Award of Upset Bid for Surplus Property REQUEST: To Award an Upset Bid for 0.107 acres at 115 Industrial Drive. BACKROUND: A developer, Mr. Steven Hayes, is seeking to repurpose the former IGA site at the corner of N. Bickett Boulevard and NC Hwy 561 for a new conditioned space self-storage facility. He requested that the Town sell a small portion of land to him to allow the project to proceed. The Town previously acted to declare that portion surplus and advertised it for upset bid. Mr. Hayes won the upset bid. The proposed resolution allows the Administrator to proceed with the conveyance. STAFF RECOMMENDATION: Approval 4SL d 'L191 80 - o8nesinon JO NMOL /N .29'691 Malo.Blzi S S38OV LOL'O a JS 9944 SoI Z 149.50 N 00:5S22E .09 X SOL NOILIGOV ONIGTIN8 @3SOdo8d & > - N L491 d '1422 80 = 077 AI83doud OOV J/N RESOLUTION NO. 2022-R- [A Resolution to Award the Final Bid for Surplus Propertyl WHEREAS: 1. The Town ofLouisburg owns certain real estate that it deems no longer desirable to own for governmental purposes, located at 115 Industrial Driye; and 2. This Council declared the property surplus and to dispose of the property using the upset bid process in conformance with the North Carolina General Statute ("NCGS") Chapter 160A, Article 12; and 3. The Town ofLouisburg ran a public notice in the Franklin Times on June 23, 2022 announcing the upset bid process for the item. NOW THEREFORE BE IT RESOLVED BY THE TOWN OF LOUISBURG TOWN COUNCIL DULY ASSEMBLED THAT: 1. That there was only one bid received for the portion of property located at 115 Industrial Drive in the amount of $15,000 from Mr. Steven Hayes. 2. The Town Administrator is hereby directed to dispose of the surplus personal property consistent with NCGS Ch. 160A, Art. 12 and perform all necessary steps associated with its sale to the aforementioned high bid. ATTEST: SIGNED: Lori Rogers, Temporary Town Clerk Christopher L. Neal, Mayor DATE TOWN LOUISBURG III NO O RTH CAROLIN. A Charming Since 1779 TO: TOWN COUNCIL FROM: Sean Medlin, Finance Director DATE: July 14, 2022 RE: Audit Contract Approval REQUEST: Approval of Audit Contract for Fiscal Year 2021-2022. BACKROUND: The attached Audit Contract from May & Place, PA is a contract between the Town and the audit firm to complete a required annual audit. The audit contract indicates the responsibility of the audit firm and the required due date. STAFF RECOMMENDATION: Approval of the Audit contract as submitted. COUNCIL ACTION: MOTION TO APPROVE THE AUDIT CONTRACT LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 The Goveming Board Town Counci of Primary Government Unit Town of Louisburg and Discretely Presented Component Unit (DPCU)(ifa applicable) N/A Primary Govemment Unit, together with DPCU (if applicable), hereinafter referred to as Govemmental Unit(s) and Auditor. Name May & Place, PA Auditor Address PO Box 900 Louisburg, NC 27549 Hereinafter referred to as Auditor for Fiscal Year Ending Audit Report Due Date 06/30/22 10/31/22 Must be within four months of FYE hereby agree as follows: 1. The Auditor shall audit all statements and disclosures required by U.S. generally accepted standards auditing (GAAS) and additional required legal statements and disclosures of all funds and/or divisions of the Governmental Unit(s). The non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statements and an opinion shall be rendered in relation to (as applicable) the governmental activities, the business- type activities, the aggregate DPCUS, each major govemnmental and enterprise fund, and the aggregate remaining fund information (non-major government and enterprise funds, the internal service fund type, and the fiduciary fund types). The basic financial statements shall include budgetary comparison information in a budgetary comparison statement, rather than as RSI, for the General Fund and any annually budgeted Special Revenue funds. 2. At a minimum, the Auditor shall conduct the audit and render the report in accordance with GAAS. The Auditor shall perform the audit in accordance with Government Auditing Standards if the Govemmental Unit expended $100,000 or more in combined Federal and State financial assistance during the reporting period. The auditor shall perform a Single Audit if required by Title 2 US Code of Federal Regulations Part 200 Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) or the State Single Audit Implementation Act. This audit and all associated audit documentation may be subject to review by Federal and State agencies in accordance with Federal and State laws, including the staffs of the Office of State Auditor (OSA) and the Local Government Commission (LGC)- If the audit requires a federal single audit in accordance with the Uniform Guidance ($200.501), iti is recommended that the Auditor and Governmental Unit(s) jointly agree, in advance of the execution of this contract, which party is responsible for submission of the audit and the accompanying data collection form to the Federal Audit Clearinghouse as required under the Uniform Guidance ($200.512). Ift the audit and Auditor communication are found in this review to be substandard, the results of the review may be forwarded to the North Carolina State Board of CPA Examiners (NC State Board). Page 1 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev, 11/2021 3. If an entity is determined to be a component of another government as defined by the group audit standards, the entity's auditor shall make a good faith effort to comply in a timely manner with the of the group auditor in accordance with AU-6 $600.41 - $600.42. requests 4. This contract contemplates an unmodified opinion being rendered. If during the process of the audit, the Auditor determines that it will not be possible to render an unmodified opinion on the conducting financial statements of the unit, the Auditor shall contact the LGC Staff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract. 5. If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 2018 revision, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor warrants that he/she has met the requirements for a peer review and education as specified in Government Auditing Standards. The Auditor agrees to provide a copy continuing of the most recent peer review report to the Governmental Unit(s) and the Secretary of the LGC prior to the execution of an audit contract. Subsequent submissions of the report are required only upon report expiration or upon auditor's receipt of an updated peer review report. If the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit(s) without first contacting the Secretary of the LGC for a peer review analysis that may result in additional contractual requirements. If the audit engagement is not subject to Government Accounting Standards or if financial statements are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and fail to include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this contract or in an amendment. 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 LGC Staff within four months of fiscal year end. If it becomes necessary to amend the audit fee or the date that the audit report will be submitted to the LGC, an amended contract along with a written explanation of the change shall be submitted to the Secretary of the LGC for approval. 7. It is agreed that GAAS include a review of the Governmental Unit's (Units') systems of internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor shall make a written report, which may or may not be a part of the written report of audit, to the Governing Board setting forth his/her findings, together with his recommendations for improvement. That written report shall include all matters defined as "significant deficiencies and material weaknesses" in AU-C 265 of the AICPA Professional Standards (Clarified). The Auditor shall file a copy of that report with the Secretary of the LGC. 8. All local government and public authority contracts for audit or audit-related work require the approval of the Secretary of the LGC. This includes annual or special audits, agreed upon procedures related to internal controls, bookkeeping or other assistance necessary to prepare the Governmental Unit's (Units') records for audit, financial statement preparation, any finance-related investigations, or any other audit- related work in the State of North Carolina. Approval is not required on contracts and invoices for system improvements and similar services of a non-auditing nature. 9. Invoices for services rendered under these contracts shall not be paid by the Governmental Unit(s) until the invoice has been approved by the Secretary of the LGC. (This also includes any progress billings.)[G.S. 159-34 and 115C-447] All invoices for Audit work shall be submitted in PDF format to the Secretary of the LGC for approval. The invoice marked 'approved with approval date shall be returned to Page 2 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 the Auditor to present to the Governmental Unit(s) for payment. This paragraph is not applicable to contracts for audits of hospitals. 10. In consideration of the satisfactory performance of the provisions of this contract, the Governmental Unit(s) shall pay to the Auditor, upon approval by the Secretary of the LGC if required, the fee, which includes any costs the Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (federal and state grantor and oversight agencies or other as required under the Federal and State Single Audit Acts. This does not include fees for any organizations) reviews that may be required by the NC Association of CPAS (NCACPA) Peer Review Committee pre-issuance or NC State Board of CPA Examiners (see Item 13). 11. If the Governmental Unit(s) has/have outstanding revenue bonds, the Auditor shall submit to LGC either in the notes to the audited financial statements or as a separate report, a calculation demonstrating Staff, compliance with the revenue bond rate covenant. Additionally, the Auditor shall submit to LGC Staff simultaneously with the Governmental Unit's (Units') audited financial statements any other bond statements or additional reports required by the authorizing bond documents, unless otherwise compliance in the bond documents. specified 12. After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, but not be limited to, the following information: (a) Management's Discussion and Analysis, (b) the financial statements and notes of the Governmental Unit(s) and all of its component units prepared in accordance with GAAP, (c) supplementary information requested by the Governmental Unit(s) or required for full disclosure under the law, and (d) the Auditor's opinion on the material presented. The Auditor shall furnish the required number of copies of the report of audit to the Goveming Board uponcompletion. 13. If the audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the LGC to have a pre-issuance review of its audit work, there shall be a statement in the engagement letter indicating the pre-issuance review requirement. There also shall be a statement that the Governmental Unit(s) shall not be billed for the pre-issuance review. The pre-issuance review shall be prior to the completed audit being submitted to LGC Staff. The pre-issuance review report shall accompany performed the audit report upon submission to LGC Staff. 14. The Auditor shall submit the report of audit in PDF format to LGC Staff. For audits of units other than hospitals, the audit report should be submitted when (or prior to) submitting the final invoice for services rendered. The report of audit, as filed with the Secretary of the LGC, becomes a matter of public record for inspection, review and copy in the offices of the LGC by any interested parties. Any subsequent revisions to these reports shall 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 of the Securities and Exchange Commission and for other lawful purposes of the Governmental Unit(s) without requiring consent: of the Auditor. If the LGC Staff determines that corrections need to be made to the Governmental Unit's (Units') financial statements, those corrections shall be provided within three business days of notification unless another deadline is agreed to LGC Staff. by 15. Should circumstances disclosed by the audit call for a more detailed investigation by the Auditor than necessary under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need for such additional investigation and the additional compensation required therefore. Upon approval bythe Page 3 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 Secretary of the LGC, this contract may be modified or amended to include the increased time, or both as may be agreed upon by the Governing Board and the Auditor. compensation, 16. If an approved contract needs to be modified or amended for any reason, the change shall be made in writing and pre-audited if the change includes a change in audit fee (pre-audit requirement does not apply to hospitals). This amended contract shall be completed in full, including a written explanation of the change, signed and dated by all original parties to the contract. It shall then be submitted to the Secretary of the LGC for approval. No change to the audit contract shall be effective unless approved by the Secretary of the LGC, the Governing Board, and the Auditor. 17. A copy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit(s), shail be attached to this contract, and except for fees, work, and terms not related to audit services, shall be incorporated by reference as if fully set forth herein as part of this contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms of this contract shall take precedence. Engagement letter terms that conflict with the contract are deemed to be void unless the conficting terms of this contract are specifically deleted in Item 30 of this contract. Engagement letters containing indemnification clauses shall not be accepted by LGC Staff. 18. Special provisions should be limited. Please list any special provisions in an attachment. 19. A separate contract should not be made for each division to be audited or report to be submitted. If a DPCU is 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. If a separate report is not to be issued and the DPCU is included in the primary government audit, the DPCU shall be named along with the primary government on this audit contract, DPCU Board approval date, signatures from the DPCU Board chairman and finance officer also shall be included on this contract. 20. The contract shall be executed, pre-audited (pre-audit requirement does not apply to hospitals), and physically signed by all parties including Governmental Unit(s) and the Auditor, then submitted in PDF format to the Secretary of the LGC. 21. The contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify the Govermental Unit and Auditor of contract approval by email. The audit should not be started before the contract is approved. 22. Retention of Client Records: Auditors are subject to the NC State Board of CPA Examiners' Retention of Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well as non-attest services. Clients and former clients should be familiar with the requirements of this rule prior to requesting the return of records. 23. This contract may be terminated at any time by mutual consent and agreement of the Governmental Unit(s) and the Auditor, provided that (a) the consent to terminate is in writing and signed by both parties, (b) the parties have agreed on the fee amount which shall be paid to the Auditor (if applicable), and (c) no termination shall be effective until approved in writing by the Secretary of the LGC. 24. The Governmental Unit's (Units') failure or forbearance to enforce, or waiver of, any right or an event of breach or default on one occasion or instance shall not constitute the waiver of such right, breach or default on any subsequent occasion or instance. 25. There are no other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into in accordance with the procedure set out herein and approved by the Secretary of the LGC. Page 4 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 26. E-Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of NCGS Chapter 64, Article 2. 27. Applicable to audits with fiscal year ends of June 30, 2020 and later. For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct and Governmental Auditing Standards, 2018 Revision (as applicable). Financial statement preparation assistance shall be deemed a significant threat" requiring the Auditor to appiy safeguards sufficient to reduce the threat to an acceptable level. If the Auditor cannot reduce the threats to an acceptable level, the Auditor cannot complete the audit. If the Auditor is able to reduce the threats to an acceptable level, the documentation of this determination, including the safeguards applied, must be included in the audit workpapers. All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be identified and included in this contract. The Governmental Unit shall designate an individual with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the services and accept responsibility for the results of the services performed. If the Auditor is able to identify an individual with the appropriate SKE, s/he must document and include in the audit workpapers how he/she reached that conclusion. If the Auditor determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot perform both the non-attest service(s) and the audit. See "Fees for Audit Services" page of this contract to disclose the person dentified as having the appropriate SKE for the Govermental Unit. 28. Applicable to audits with fiscal year ends of June 30, 2021 and later. The auditor shall present the audited financial statements Including any compliance reports to the government unit's governing body or audit committee in an official meeting in open session as soon as the audited financial statements are available but not later than 45 days after the submission of the audit report to the Secretary. The auditor's presentation to the government unit's governing body or audit committee shall include: a) the description of each finding, including all material weaknesses and significant deficiencies, as found by the auditor, and any other issues related to the internal controls or fiscal health of the government unit as disclosed in the management letter, the Single Audit or Yellow Book reports, or any other communications from the auditor regarding internal controls as required by current auditing standards set by the Accounting Standards Board or its successor; b) the status of the prior year audit findings; c) the values of Financial Performance Indicators based on information presented in the audited financial statements; and d) notification to the governing body that the governing body shall develop a "Response to the Auditor's Findings, Recommendations, and Fiscal Matters," if required under 20 NCAC 03 .0508. 29. Information based on the audited financial statements shall be submitted to the Secretary for the purpose ofi identifying Financial Performance Indicators and Financial Performance Indiçators of Concern. See 20 NCAC 03 .0502(c)(6). Page 5 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 30. All of the above paragraphs are understood and shall apply to this contract, except the following numbered paragraphs shall be deleted (See Item 17 for clarification). 31. The process for submitting contracts, audit reports and invoices is subject to change. Auditors and units should use the submission process and instructions in effect at the time of submission. Refer to the N.C. Department of State Treasurer website at ntps.Mww-ncteasure.comsiate-ankoca- syA 32. All communications regarding audit contract requests for modification or official approvals will be sent to the email addresses provided on the signature pages that follow. 33. Modifications to the language and terms contained in this contract form (LGC-205) are not allowed. Page 6 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 FEES FOR AUDIT SERVICES 1. For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct (as applicable) and Governmental Auditing Standards,2018 Revision. Refer to Item 27 of this contract for specific requirements. The following information must be provided by the Auditor; contracts presented to the LGC without this information will be not be approved. Financial statements were prepared by: Auditor Govermental Unit Third Party If applicable: Individual at Governmental Unit designated to have the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the non-attest services and accept responsibility for the results of these services: Name: Title and Unit/Company: Email Address: Sean Medlin Finance Officer smedlin@nmbiz.com OR Not Applicable (Identification of SKE Individual not applicable for GAAS-only audit or audits with FYES prior to June 30, 2020.) 2. Fees may not be included in this contract for work performed on Annual Financial Information Reports (AFIRs), Form 990s, or other services not associated with audit fees and costs. Such fees may be included in the engagement letter but may not be included in this contract or in any invoices requiring approval of the LGC. See Items 8 and 13 for details on other allowable and excluded fees. 3. Prior to the submission of the completed audited financial report and applicable compliance to this contract, or to an amendment to this contract (if required) the Auditor may submit interim invoices reports for subject approval for services rendered under this contract to the Secretary of the LGC, not to exçeed 75% of the for the unit's last annual audit that was submitted to the Secretary of the LGC. Should the 75% cap provided billings below conflict with the cap calculated by LGC Staff based on the billings on file with the LGC, the LGC calculation prevails. All invoices for services rendered in an audit engagement as defined in 20 NCAC 0503 shall be submitted to the Commission for approval before any payment is made. Payment before approval is a violation of law. (This paragraph not applicable to contracts and invoices associated with audits of hospitals). PRIMARY GOVERNMENT FEES Primary Government Unit Town of Louisburg Audit Fee $ 24.500 Additional Fees Not Included in Audit Fee: Fee per Major Program $ 5,000.00 Writing Financial Statements $ 8,500.00 All Other Non-Attest Services $ 75% Cap for Interim Invoice Approval (nota applicable to hospital contracts) $2 23,625.00 DPCU FEES (if applicable) Discretely Presented Component Unlt NIA Audit Fee $ Additional Fees Not Included in Audit Fee: Fee per Major Program $ Writing Financial Statements $ All Other Non-Attest Services $ 75% Cap for Interim Invoice Approval $ (not applicable to hospital contracts) Page 7 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 SIGNATURE PAGE AUDIT FIRM Audit Firm* May & Place, PA Authorized Firm Representative (typed or printed)* Signature*" Dale Place a62526 Date* Email Address" 06/22/22 dale@mayandplace.com GOVERNMENTAL UNIT Govemmental Unit* Town of Louisburg Date Primary Government Unit Governing Board Approved Audit Contract* (G.S.159-34(a)ort G.S.115C-447(a) Mayor/Chairperson (typed or printed)* Signature* Christopher Neal - Mayor Date Email Address Chair of Audit Committee (typed or printed, or "NA") Signature N/A Date Email Address GOVERNMENTAL UNIT - PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts. This instrument has been pre-audited in the manner required by The Local Govemment Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act. Primary Govemmental Unit Finance Officer* (lyped or printed Signature* Sean Medlin Date of Pre-Audit Certificate" Email Address* smedlin@nribz.com Page 8 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2021 SIGNATURE PAGE - DPCU (complete only if applicable) DISCRETELY PRESENTED COMPONENT UNIT DPCU" N/A Date DPCU Governing Board Approved Audit Contract"* (Ref: G.S. 159-34(a) or G.S. 115C-447(a)) DPCU Chairperson (typed or printed)* Signature" Date* Email Address* Chair of Audit Committee (typed or printed, or "NA") Signature Date Email Address DPCU - PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts. This instrument has been pre-audited in the manneri required by The Local Govemment Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act. DPCU Finance Officer (typed or printed)* Signature" Date of Pre-Audit Certificate* Email Address* Remember to print this form, and obtain all required signatures prior to submission. - Page 9 May & Place, PA CERTIFIED: PUBLIC ACCOUNTANTS P.O. Box 900 LOUISBURG, NC 27549 Bus: 919-496-3041 SCOTT H. MAY, CPA Fax: 919-496-6342 DALE R. PLACE, CPA, CFE June 22, 2022 To the Honorable Mayor and Town Council Members Town of Louisburg 110 W. Nash Street Louisburg, NC 27527 We are pleased to confirm our understanding of the services we are to provide the Town of Louisburg for the year ended June 30, 2022. Audit Scope and Objectives We will audit the financial statements of the governmental activities, business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the. basic financial statements of the Town of Louisburg as of and for the year ended June 30, 2022. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to supplement the Town of Louisburg's basic financial statements. Such information, although not a part of 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 financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the Town of Louisburg's RSI in accordance with auditing standards generally accepted in the United States of America (GAAP). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management'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 provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1) Management's Discussion and Analysis. 2) Schedule of Proportionate Share of Net Pension Liability (Asset) for Local Government Employees' Retirement System. 3) Schedule of Contributions to Local Government Employees' Retirement System. 4) Schedule of Changes in Total Pension Liability for Law Enforcement Officers' Special Separation Allowance 5) Schedule of Total Pension Liability as a Percentage of Covered Payroll for Law Enforcement Officers' Special Separation Allowance. 6) Schedule of Changes in the Total OPEB Liability. We have also been engaged to report on supplementary information other than RSI that accompanies the Town of Louisburg's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and we will provide an opinion on it in relation to the financial statements as a whole: 1) Combining and individual fund statements 2) Budgetary schedules and other schedules The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, issue an auditor's report that includes our opinion about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement of a reasonable user made based on the financial statements. The objectives also include reporting on internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government. Auditing Standards. Auditor's Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the Town of Louisburg and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards. We exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overal! presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that material misstatements may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS 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 comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government's ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected customers, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement. We have identified the following significant risk(s) of material misstatement as part of our audit planning: Improper revenue recognition due to fraud. Our audit of financial statements does not relieve you of your responsibilities. Audit Procedures--Internal Control We will obtain an understanding of the government and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be 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 Govemment Auditing Standards. The risk of not detecting a material misstatement: resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. Audit Procadures-Complance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of Town of Louisburg's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance, and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Other Services We will also assist in preparing the financial statements and related notes of the Town of Louisburg in conformity with accounting principles generally accepted in the United States of America based on information provided by you. These nonaudit services do not constitute an audit under Govemment Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation 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; and accept responsibility for them. Responsibilities of Management for the Financial Statements Our audit will be conducted on the basis that you acknowledge and understand your responsibility for designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, and for 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 of the financial statements and all accompanying information in conformity with accounting principles generally accepted in the United States of America, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making drafts of financial statements, all financial records, and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related- party relationships and transactions, and other matters; (2) additional information that we may request for the purpose of the audit; and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. 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 GAAS and Government Auditing Standards. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, or contracts or grant agreements that we report. You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with accounting principles generally accepted in the United States of America (GAAP). You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary, information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon or make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; methods (3) the of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. We will provide copies of our reports to the Mayor and Town Council; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of May & Place, PA, 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 North Carolina Local Government Commission or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for the purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of May & Place, PA, personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend or decide to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Dale Place is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. We expect to begin our audit on approximately July 15, 2022, and to issue our reports no later than October 31, 2022. Our fee for these services will be $24,500.00 plus $5,000.00 for each federal and/or State major program as defined by the Uniform Guidance and/or the NC Single Audit Implementation Act for the audit and $8,500.00 for the financial statement preparation. Our invoices for these fees will be rendered in accordance with the North Carolina Local Government Commission instructions as detailed in the contract. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not 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. Reporting We will issue a written report upon completion of our audit of Town of Louisburg's financial statements. Our report will be addressed to the Town Council of the Town of Louisburg.. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor's report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will state (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that 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 report will also state that the report is not suitable for any other purpose. If during our audit we become aware that Town of Louisburg is subject to an audit requirement that is not encompassed in the terms of this 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 Govemment Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. We appreciate the opportunity to be of service to the Town of Louisburg and believe this letter accurately summarizes the significant terms of our engagement. f you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the attached copy, and return it to us. Very truly yours, d Paves PA May & Place, PA RESPONSE: This letter correctly sets forth the understanding of the Town of Louisburg. Management signature: Title: Town Administrator Date: Governance signature: Title: Mayor Date: LOUISBURG NOH RTH CAR OLIN A Charming Since 1779 MEMORANDUM To: Mayor Christopher Neal and Town Council From: Jon Barlow, Interim Town Administrator Subject: Real Estate Acquisition - 124 N. Main St. Date: July 18, 2022 Effective 3/1/2021, the Town entered into Lease with purchase option agreement to acquire the building and land located at 124 N. Main St. Ihave attached a copy of the Agreement for your information. The Agreement gives the Town until 3/1/2022 to exercise the option to purchase. The purchase price is $425,000 which has been reduced to $389,000 since the Town has already paid the first years lese amount of$36,000. It is my understanding that the Town allocated $25,000 of ARPA funds to acquire the property. Ifthe Town Board exercises the option to purchase, then according to the agreement the closing will occur within the next 30 days. Attorney Kelly Chase with Cauley & Pridgen and the author of the Option to purchase is prepared to make the closing. Recommended Action Exercise the option to acquire the land and building located at 124 N. Main St. in the amount of $425.000 using American Rescue Plan Funds. (919) 496-4145 * FAX (919) 496-6319 * asingtoafoumhupen NORTH CAROLINA FRANKLIN COUNTY LEASE WITH PURCHASE OPTION AGREEMENT This Lease-Purchase Option Agreement, made as of the day of February, 2022, by and between the Lessor and the Lessee named below, (the "Effective Date"). ARTICLE 1 - BASIC LEASE TERMS For purposes of this Lease, the following terms shall have the meanings set forth below: 1.1 Lessor. Manmohan and Kaushalindra Singh, a married couple. 1.2 Lessee. Town of Louisburg, body politic and corporate organized and existing under the laws of the State ofNC. 1.3 Premises. The Building and the Land, located at 124 N Main Street, Louisburg, NC as more particularly described in Exhibit A attached hereto and incorporated herein by reference (the "Property"). All furniture, equipment and other personal property now located within the Building shall also be considered to be a part ofthe Property and shall be conveyed to the Lessee under the terms of this Lease. 1.4 Term. One (1) year, beginning on the Commencement Date. 1.5 Commencement Date. The "Commencement Date" shall be 2022, and rent payments under this Lease shall begin to be paid. The Commencement Date shall constitute the commencement ofthe Term ofthis Lease for all purposes. 1.6 Base Rent. During the Term, Base Rent (which may also be referred to herein as "Rent") shall Thirty-six Thousand and No/100 Dollars ($36,000.00) annually. The first year of the Term shall be paid on the Commencement Date. 1.7 Addresses. Lessee's Address Lessor's Address Town ofLouisburg Mr. and Mrs. Singh 110 W. Nash St. 111 E. Franklin Street Louisburg, NC 27549 Louisburg, NC 27549 Attention: Jonathan Franklin With a copy to: With a copy to: Cauley Pridgen, PA Manning Fulton James P. Cauley, III Gray Wilson 2500 Nash Street N, Ste. C Diamond View II, Suite 130 Wilson, North Carolina 27894 280 South Mangum Street Durham, NC 27701 Lessor and Lessee, by written notice to the others may change from time to time the foregoing addresses. 1.8 Permitted Use. Lessee shall use the Property for construction staging, heavy machinery storage and other industrial and commercial uses relating thereto. Lessee shall not remove or alter the tanks and other gas station equipment located on the Property on the Commencement Date. 1.9 Suspension of Operations. Owner shall file all required documentation and complete all regulatory and permitting requirements for the temporary closure oft the tanks and gas station operations during the Term. ARTICLE 2 - GRANTING CLAUSE, TERM AND RENT PROVISIONS 2.1 Grant of Property: Term. In consideration of the obligation of Lessee to pay the rent and other charges as provided in this Lease and in consideration of the other terms and provisions of this Lease, Lessor hereby leases the Property to Lessee during the Term. Provided Lessee shall not be in default beyond any applicable cure period. 2.2 Rent. Beginning on the Commencement Date, Lessee agrees to pay. Lessor, without demand, offset or deduction except as expressly stated in this Lease, the Base Rent. 2.3 Holding Over. IfLessee does not vacate the Property upon the expiration or earlier termination of this Lease, Lessee shall be a Lessee on a month-to-month basis for the holdover period and all of the terms and provisions of this Lease shall be applicable during that period. No holding over by Lessee whether with or without the consent of] Lessor shall operate to extend the term oft this Lease. ARTICLE 3 - PURCHASE OPTION 3.1 Grant of Option. In consideration of the mutual promises of the parties, Lessor does hereby give and grant to Lessee the privilege and option to purchase, under the conditions hereinafter provided, all ofLessor's right title and interest in the Property (the "Option"). 3.2 Exercise of Option. Lessee may exercise the Option at any time during the Term by giving Lessor written notice thereof (the "Option Exercise Date"). (a) If Lessee fails to exercise its option during the term of this Agreement, Lessee shall pay an option termination fee to Lessor in the total amount of Seventy-five Thousand and No/100 Dollars ($75,000.00) (the "Option Termination Fee"). The Option Termination Fee shall be payable to Lessor without further demand within Thirty (30) days of the expiration or earlier termination of the Term. Notwithstanding the foregoing, the Option Termination Fee shall not be owed if any Phase I Environmental Site Assessment conducted by Lessee during the Due Diligence Period established herein identifies a substantial environmental liability that is unrelated to the Property's historical operations as a gas station and convenience store. As an example, identification of a previously unknown release of gasoline or any other petroleum product would not relieve Lessee from the Option Termination Fee because such issue would be related to the Property's historical operation as a gas station. 3.3 Purchase Price. The Purchase Price shall be Four Hundred Twenty-five Thousand and No/100 Dollars ($425,000.00). The total amount of Rent paid by Lessee to Lessor shall be credited toward the Purchase Price at Closing (the "Rent Credit"). The Purchase Price shall be paid by wire transfer of funds on the Closing Date. 3.4 Closing: Closing Costs. The closing oft the purchase and sale of the Property shall occur no later than Thirty (30) days following the Option Exercise Date (the "Closing Date-"). At Closing, Lessor shall pay the state excise tax on the deed, any prorated, deferred or past due property taxes, and the cost of recording any corrective instruments to provide marketable title to the Property. Lessee shall pay the Purchase Price less Rent Credit, recording costs for the deed or any other Lessee document, any document preparation costs and any title insurance premiums. 3.5 Closing Documents. (a) Lessor's 's Delivery. At Closing, Lessor shall deliver to Lessee the following (each properly executed and authorized): i. An executed general warranty deed conveying good and marketable title in and to the Property to Buyer. ii. An executed affidavit regarding liens establishing that there are no lien claims of mechanics, laborers and materialmen. iii. An executed settlement statement. iv. An executed IRS Non-foreign Owner Affidavit. V. An affidavit stating the Property is not occupied by Lessees or encumbered by unrecorded leases. vi. A 1099 (ifapplicable). vii. Any other documents reasonably required by Buyer's title insurance company, including, but not limited to, any gap indemnity and/or documents associated with COVID. (b) Lessee's Delivery. At Closing, Lessee shall deliver to Lessor the following: i. The Purchase Price for the Property being purchased at each particular closing less the Rent Credit. ii. An executed settlement statement. 3.6 Due Diligence Period. The Due Diligence Period shall commence on the Commencement Date and shall terminate on the Option Exercise Date. (a) On or before the date three (3) calendar days after the Commencement Date, Lessor shall deliver to Lessee, if not previously delivered, any survey ofthe property and all surveys, plans, specifications, titie insurance policies, environmental, engineering and mechanical data relating to the Property, and reports such as soils reports and environmental audits, which are in Lessor's possession. These Due Diligence Materials will be provided to Lessee without any representation or warranty ofany kind or nature whatsoever and are merely provided to Lessee for Lessee's informational purposes. Until Closing, Lessee and Lessee's Designees shall maintain all Due Diligence Materials as confidential information. If the purchase and sale of the Property is not consummated in accordance with this Agreement, regardless of the reason or the party at fault, Lessee shall immediately re-deliver to Lessor all copies oft the Due Diligence Materials. (b) Lessee shall have the Due Diligence Period to investigate the Property to decide whether Lessee, in Lessee's sole discretion, will proceed with or. terminate the transaction. During the Due Diligence Period, Lessee or Lessee's agents or representatives, at Lessee's expense, shall be entitled to conduct all desired tests, surveys, appraisals, investigations, examinations and inspections of the Property as Lessee deems appropriate, including, but not limited to engineering and environmental examinations including invasive testing. Lessee shall at all times use appropriately licensed and insured contractors, subcontractors and agents while conducting any and all due diligence on the Property. Lessee shall, at Lessee's expense, promptly repair any damage to the Property resulting from any activities ofLessee and Lessee's agents and contractors. This repair obligation shall survive any termination of this Agreement. Lessee shall notify Lessor in writing of any investigations, tests, examinations or inspections conducted on the Property. Lessor may at Lessor's sole expense and discretion have Lessor's own consultant or engineer present for any such investigation SO long as the presence of any such consultant or engineer shall not interfere the investigation. Any Lessor consultant or Lessor engineer shall be appropriately licensed and insured contractors, subcontractors and agents. 3.7 Title. Lessor shall convey marketable title to the Property by general warranty deed, subject only to ad valorem taxes for the year in which the Closing occurs and easements, rights-of restrictions of record. At Closing, Lessor shall also deliver to Lessee an absence of lien affidavit, and any corrective instruments that may be required in connection with perfecting the title. 3.8 Release. From and after Closing, both parties release and forever discharge each other's officials, employees, and agents from all claims, actions, suits, damages,, judgments, losses, costs, and expenses (including without limitation reasonable attorneys' fees) arising out of or relating to the Property. ARTICLE 4 - POSSESSION, USE AND OPERATIONS; TAXES 4.1 Compliance with Laws, Rules and Regulations. Lessee, at Lessee's sole cost and expense, shall comply with all laws, ordinances, orders, rules and regulations of state, federal, municipal or other agencies or bodies having jurisdiction over the use, or occupancy of the Property. 4.2 Warranty of] Possession. Lessor warrants to Lessee, that upon payment of the Rent by Lessee and subject to the terms, conditions, covenants and agreements contained in this Lease, Lessee shall have possession ofthe Property during the Term ofthis Lease without hindrance from Lessor or any person or persons lawfully claiming the Property by, through or under Lessor (but not otherwise); subject, however, to all laws, ordinances, orders, rules and regulations of any governmental authority. 4.3 Inspection of Property. Upon not less than twenty four (24) hours' prior notice Lessor or its authorized agents shall at any and all reasonable times during normal business hours have the right to enter the Property to inspect the same. 4.4 Real Estate Taxes. Lessor shall pay, satisfy and discharge as the same becomes due and payable, all special assessments, real estate taxes, ad valorem taxes of any sort and any other governmental charges (collectively "Taxes"), penalties and interest levied or imposed upon or against the Property, during the Term. Lessee shall pay, satisfy and discharge as the same becomes due any assessment, charges or penalties arising from Lessee's own activities. ARTICLE 5 - CONSTRUCTION OF IMPROVEMENTS; ALTERATIONS 5.1 Lessee Improvements. Lessee shall make such other improvements to the Property as shall be necessary to prepare the Property for use by Lessee. Lessee shall not make or allow to be made any structural alterations, additions or improvements in or to the Property without first obtaining the written consent of Lessor, which consent shall not be unreasonably withheld or delayed. Any alterations, physical additions or improvements to the Property made by or installed by either party hereto shall remain upon and be surrendered with the Property and become the property ofLessor upon the expiration or earlier termination ofthis Lease without credit to Lessee. ARTICLE 6 - COVENANTS AND REPRESENTATIONS 6.1 Lessee Representations. Lessee covenants and represents to Lessor as follows, which representations shall be deemed remade at and as ofClosing and which shall survive Closing and/or termination of this Agreement: (a) Lessee is a duly organized and validly existing body politic and corporate under the laws of the State of North Carolina, and has all requisite power and authority for the making ofthis Agreement. (b) The execution and delivery of this Agreement, compliance with provisions hereof, and the consummation ofthe transaction contemplated hereby, will not result in any breach or violation of, or constitute a default under, the organizational documents of Lessee or any agreement, contract or other instrument to which Lessee is a party, or by which Lessee is bound. (c) The individual(s) signing on behalf of Lessee have all necessary authority to bind Lessee to this Agreement, and no additional approvals and/or signatures are required to make this Agreement fully binding on Lessee in all respects. (d) Lessee has voluntarily entered into this Agreement and the transaction contemplated hereunder without relying in any manner on any representations, opinions, or actions ofLessor or any person or entity purporting to be acting on behalf statements, ofLessor. 6.2 Lessor Representations Lessor covenants and represents to Lessee as which representations shall be deemed remade at and as ofClosing and which shall survive follows, and/or termination of this Agreement: Closing (a) To the best of Lessor's knowledge, Lessor has not received written notice from any governmental body having jurisdiction asserting the existence of any any violations of any applicable laws with respect to the Property; and (b) Lessor has good and marketable title to the Property and the right to same consistent with the terms oft this Agreement; and convey (c) To the best of Lessor's knowledge, there are no third party service, maintenance or similar contracts related to the ownership, operation, maintenance or management ofthe Property other than those which may be terminated without penalty, and which Lessor shall terminate in connection with the Closing, and (d) Lessor represents and warrants that, to Lessor's knowledge, as of the Effective Date that, other than as disclosed in the Notice of Residual Petroleum and No Further Action Letter previously submitted to the Lessee for review, the Property is free of known or identified Hazardous Materials, no release has occurred on the Property and Hazardous Materials have not migrated to the Property; the Property is in compliance with all Environmental Laws; the Property is not subject to any Environmental Liability, threatened Environmental alleged Environmental Liability; and the Property has not received notice of any violation Liability of or Environmental Laws affecting the Property. (1) "Hazardous Materials" shall mean any and all pollutants, contaminants, toxic or hazardous wastes or any other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized under any Environmental Law (including, without limitation, lead paint, asbestos, urea formaldehyde foam insulation, petroleum and polychlorinated biphenyls). (ii) "Environmental Law" shall mean any law, ordinance, rule, regulation, order, judgment, injunction or decree relating to pollution or substances or materials which are considered to be hazardous or toxic. (e) No investigation, action or proceeding is pending and to Lessor's knowledge no investigation, action or proceeding is threatened, with respect to the Property or this Agreement or any action taken or to be taken pursuant hereto. (f) Lessor's S represents and warrants that no other parties have rights, options or rights of first refusal to purchase the Property. (g) Lessor has received no written notice of the commencement of any proceedings for taking by condemnation or eminent domain of any part of the Property and to Lessor's S knowledge no such proceedings are contemplated. 6.3 Lessor Covenants. (a) Lessor shall: (i) Promptly deliver to Lessee copies of any notice received by Lessor after the Effective Date regarding all actions, suits, and other proceedings affecting the Property, or the use, possession or occupancy thereof which may adversely affect Lessee or the Property; (ii) Promptly deliver to Lessee copies ofnotices received by Lessor after the Effective Date ofreleases oftoxic substances or any actual condemnation ofthe Property or any portion thereof given by or on behalf of any Federal, state or local agency; ARTICLE 7 - REPAIRS AND MAINTENANCE 7.1 Lessor Repairs. Lessor shall not be required to make any improvements, replacements or repairs of any kind or character to the Property during the Term ofthis Lease. 7.2 Lessee Repairs. Lessee, at its own cost and expense, shall maintain the Property in good condition for its intended uses. Lessee shall further make all other repairs to the Property for any damage to the Property caused by Lessee. 7.3 Lessee Damages. At the termination of this Lease, by lapse of time or otherwise, Lessee shall deliver the Property to Lessor free from any damage and in as good condition as existed at the Commencement Date of this Lease, ordinary wear and tear or loss or damage by condemnation or casualty excepted. The cost and expense of any repairs necessary to restore the condition of the Property shall be borne by Lessee. ARTICLE 8 - CASUALTY AND INSURANCE 8.1 Insurance. Lessee shall, at all times during the Term of this Lease, at its own expense, keep in full force and effect commercially acceptable insurance policies on the Property to include Comprehensive General Liability Insurance and Building and Property Hazard Insurance. Lessee shall be responsible for carrying its own insurance upon the trade fixtures, furniture, equipment, machinery and equipment, supplies and other personal property belonging to the Lessee located on the Property. 8.2 Waiver of Subrogation. To the extent that any loss or damage is covered by Insurance, anything in this Lease to the contrary notwithstanding, Lessor and Lessee hereby waive and release each other of and from any and all right of recovery, claim, action or cause of action, against each other, their agents, officers and employees, for any loss or damage that may occur to the Property, or personal property within the Property, by reason of fire or the elements, regardless of cause or origin, including negligence of Lessor or Lessee and their agents, officers and employees. Lessor and Lessee agree immediately to give their respective insurance companies which have issued policies ofinsurance covering all risk of direct physical loss, written notice of the terms of the mutual waivers contained in this Section, and to have the insurance policies properly endorsed, if necessary, to prevent the invalidation oft the insurance coverage reason of the mutual waivers. by ARTICLE 9 - INDEMNIFICATION AND HOLD HARMLESS 9.1 Indemnification and Hold Harmless. (a) Lessee. Lessor shall not be liable to Lessee or to Lessee's customers, employees, agents, guests or invitees, or to any other person whomever, for any injury to or damage to property on or about thel Property, including but not limited to, consequentiai persons (1) caused by any act or omission ofLessee, its employees, licensees and concessionaires damage, any other person entering the Property by express or implied invitation of Lessee, or or of out ofthe use of the Property by Lessee, its employees, licensees, concessionaires (2) arising (3) arising out of any breach or default by Lessee in the performance ofits obligations or invitees, hereunder, or or (4) caused by the improvements located in the Property becoming out of repair or defect or failure of equipment, pipes, or wiring, or by broken glass, or by the backing up of drains, by or by in gas, water, steam, electricity or oil leaking, escaping or flowing into the Property which commenced during the Term; and Lessee hereby agrees to indemnify Lessor and hold Lessor harmless from any liability, loss, expense or claim (including, but not limited to, reasonable attorneys' fees and legal expenses) arising out of such damage or injury caused by reasons stated in numbers (1), (2), (3) or (4). Lessor shall maintain the right at all times to defend any action on Lessor's behalfthrough an attorney chosen by Lessor in Lessor's sole choice and discretion. (b) Lessor. Lessee shall not be liable to Lessor or to Lessor's agents, guests or invitees, or to any other person whomever, for any injury to persons or damage to property on or about the Property, including but not limited to, consequential damage, (1) caused any act or omission by of Lessor, its employees, licensees and concessionaires or of any other person entering the Property by express or implied invitation ofLessor, or (2) arising out ofthe use ofthe Property by Lessor, its employees, licensees, concessionaires or invitees, or (3) arising out breach or default by Lessor in the performance of its obligations hereunder, or (4) ofany caused by the improvements located in the Property becoming out of repair or by defect in or failure of equipment, pipes, or wiring, or by broken glass, or by the backing up of drains, or by gas, water, steam, electricity or oil leaking, escaping or flowing into the Property which commenced to or after the Term; and Lessor hereby agrees to indemnify Lessee and hold Lessee harmless prior from any liability, loss, expense or claim (including, but not limited to, reasonable attorneys' fees and legal expenses) arising out of such damage or injury caused by reasons stated in numbers or (1), (3) (4). Lessee shall maintain the right at all times to defend any action on Lessee's behalf (2), through an attorney chosen by Lessee in Lessee's sole choice and discretion. ARTICLE 10 - CONDEMNATION 10.1 Partial or Substantial Taking. If in the determination of Lessee, any part of the Property shall be taken for any public or quasi-public use under any, governmental law, ordinance or regulation, orby right ofeminent domain or by purchase in lieu thereof, and in the determination of Lessee the taking would prevent or materially interfere with the use of the Property for the purpose for which it is then being used, this Lease shall, at the option ofLessee, terminate and the Rent shall be abated during the unexpired portion of this Lease effective on the date physical possession is taken by the condemning authority. 10.2 Condemnation Proceeds. Compensation awarded for any taking (or the proceeds of private sale in lieu thereof), whether for the whole or a part ofthe Property, shall be the property of Lessor if Lessee terminates this Agreement in accordance with Art 10.1 herein, and Lessee hereby assigns all ofits interest in any such award to Lessor up to that amount. Lessor shall have no: interest in any award and shall assign any and all interest in any such award to Lessee ifLessee determines in Lessee's sole discretion that Lessee shall continue the Agreement and exercise its option hereunder. ARTICLE 11 - DEFAULT AND REMEDIES 11.1 Default by Lessee. The following shall be deemed to be events ofc default by Lessee under this Lease: (a) Lessee shall fail to pay any installment of Rent when due and that failure continues for ten (10) days after Lessee receives written notice from Lessor of that failure; (b) Lessee shall do or permit to be done any act which results in a lien being filed against the Property and such lien is not removed within thirty (30) days after Lessee receives written notice oft that lien from Lessor; (c) Lessee shall be in default of any other term, provision or covenant of this Lease, and such default is not cured within thirty (30) days after written notice from Lessor to Lessee. 11.2 Remedies for Lessee's Default. Upon the occurrence of any event of default set forth in this Lease, Lessor shall have the option to pursue any one or more of the following remedies without any additional notice or demand: (a) Lessor may enter upon and take possession of the Property, and after obtaining a court order lock out, expel or remove Lessee and any other person who may be occupying all or any part of the Property without being liable for any claim for damages, and relet the Property and receive the rent directly by reason of the reletting. Lessee agrees to pay Lessor on demand all amounts when due under this Lease, any brokers' fees, attorneys' fees or the cost of any repairs that were the responsibility of Lessee under this Lease that Lessor may incur by reason of any reletting of the Property. (b) Lessor may enter upon the Property, without being liable for any claim for damages, and perform Lessee's obligations under the terms of this Lease. Lessee agrees to reimburse Lessor on demand for any reasonable expenses which Lessor may incur in effecting compliance with Lessee's obligations under this Lease; further, Lessee agrees that Lessor shall not be liable for any damages resulting to Lessee from effecting compliance with Lessee's obligations under this Lease caused by the negligence ofLessor or otherwise. (c) Lessor shall use commercially reasonable efforts to mitigate Lessor's damages in the event of a Lessee default or breach. To the maximum extent permitted by law, Lessor and Lessee agree that the parties hereto intend that all rights and remedies ofLessor under this Lease shall supersede any conflicting provisions of the General Statutes of North Carolina, and any amendment, modification, recodification or other change thereto. 11.3 Remedies Cumulative. All rights and remedies ofLessor herein or at law or in equity are cumulative and the exercise of one or more rights or remedies shall existing not be deemed to exclude or waive the rights to the exercise of any other. 11.4 Lessor's Default and Lessee's Remedies. Lessor shall be in default if it fails to perform any term, condition, covenant or obligation required under this Lease for a period of 30 days after written notice from Lessee to Lessor; except, that if the term, condition, covenant or obligation to be performed by Lessor is such that it cannot reasonably be performed within 30 days, then the default shall be deemed to have been cured ifLessor commences such within the thirty-day period and thereafter diligently undertakes to the performance complete same. On the occurrence of any such default, Lessee may (i) sue for injunctive relief or to recover damages for any loss directly resulting from the breach, (ii) Lessee may perform the obligation on behalf of Lessor and recover any costs for such performance from Lessor, or (iri) Lessee may terminate this Lease. IfLessee elects to perform Lessor's obligation, then Lessee shall send Lessor an invoicc or other proof of payment showing Lessee's costs incurred in performing Lessor's and Lessor shall reimburse Lessee within 30 days of receiving the invoice or other proof obligation of payment. ARTICLE 12 - TERMINATION 12.1 Termination. This Agreement shall automatically terminate at the expiration ofthe Term and neither party shall have any further obligation under this Agreement unless such obligation survives termination as stated herein. 12.2 Termination with Notice. Lessee may at any time during the Term of this Agreement terminate this Agreement with 30 days written notice to Lessor identifying the date of surrender ofthel Property (the "Termination Notice"). IfLessee elects to terminate this Agreement during the first year oft the Term, Lessor shall retain all Rent paid by Lessee and neither Lessee or Lessor shall have any further obligation under this Agreement. 12.3 Surrender Lessee agrees to take good care ofthe Premises and to commit no and suffer no injury to be done to the same, and to return the possession of the same to Lessor waste, at the expiration of the term, in as good of condition as at the commencement oft this Lease. ARTICLE 13 - MISCELLANEOUS 13.1 Entire Agreement. This Agreement sets forth all the covenants, promises, agreements, conditions, and understandings between Lessor and Lessee concerning the Property. The Parties shall make no claim on account of any alleged representations contained in prior discussions, correspondence, or other documents, not set forth in this Agreement. 13.2 Waiver. Failure of Lessor or Lessee to declare an event of default immediately upon its occurrence, or delay in taking any action in connection with an event of default, shall not constitute a waiver of the default, but Lessor or Lessee shall have the right to declare the default at any time and take such action as is lawful or authorized under this Lease. Waiver Lessor or Lessee of any default by the other Party hereunder shall in no event be deemed or construed by to be a waiver of identical or similar future defaults. 13.3 Governing Law. This Agreement shall be interpreted and enforced under the laws of the State of North Carolina. Any action brought to enforce this Agreement and the rights and obligations herein shall be filed in the Courts ofl Franklin County, North Carolina. 13.4 Amendments. Neither this Agreement nor any of the terms hereof may be terminated, amended, supplemented, waived or modified orally, but only by an instrument in writing signed by the Party against which the enforcement of the termination, amendment, supplement, waiver or modification shall be sought. 13.5 Headings. Etc. The headings ofthe various Articles and Sections ofthis Agreement are for convenience ofreference only and shall not modify, define, expand or limit any ofthe terms or provisions hereof. 13.6 Successors And Assigns. This Agreement shall not be assigned unless such assignment is in writing and signed by the Parties. The terms of this Agreement shall be binding upon, and inure to the benefit of, the Parties hereto and their respective successors and permitted assigns. 13.7 Interpretation. The captions appearing in this Lease are convenience only and in no way define, limit, construe or describe the scope or intent of any Section. Grammatical changes required to make the provisions ofthis Lease apply (1) in the plural sense where there is more than one Lessee and (2) to either corporations, associations, partnerships or individuals, males or females, shall in all instances be assumed as though in each case fully expressed. This Agreement shall not be construed more or less favorably with respect to either party as a consequence of the Agreement or various provisions hereof having been drafted by one ofthe parties hereto. 13.8 Severability. If any provision of this Agreement or the application thereof to any person or circumstances shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. Each covenant and agreement contained in this Lease shall be construed to be a separate and independent covenant and agreement, and the breach of any such covenant or agreement by Lessor shall not discharge or relieve Lessee from Lessee's obligation to perform each and every covenant and agreement of this Lease to be performed by Lessee. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under proper authority on the date first set forth above: LESSOR: Manmohan and Kaushalindra Singh By: Manmohan Singh By: Kaushalindra Singh LESSEE: Town ofLouisburg By: Jonathan Franklin, Town Manager EXHIBIT A LEGAL DESCRIPTION 124 N Main Street PIN 2805-66-7091 That certain tract or parcel ofland lying and being in the Town ofLouisburg, Franklin County, North Carolina, bounded and described as follows, to wit: BEGINNING at thepoint of intersection oft the south side ofFfanklin Street with the east side ofMain Street, and running thence South 56 deg 22 min East 75 feet to an iron pipe, thence South 34 deg Omin West 100 Rt to a point, thence North 56 deg 22 min West 75 ft to a point on the east side ofMain Street, thence with the east side ofMain Street North 34 deg 0 min East 100 ft to the place and point ofbeginning, all as per survey by] W Traylor dated. July 26, 1955, entitled "Map showing property belonging to Esso Standard Oil Company ofNew Jersey", and being the identical property conveyed to Standard Oil of r Humble : Company New Jersey (now Oil & Refining Company) by Deed ofF H Allen and wifei Lou Reyholds Allen recorded in Book 274 at Pagae 579, Franklin County Registry This is the same land described in deed from Perry's Service Station, Inc to Bailey's Convenient Mart, Inc ofrecord in Book 744 on Pages 219-221 m the office ofthe Franklin County Register ofDeeds LOUISBURG NORTH CARC OLINA A Charming Since1779 MEMORANDUM To: Mayor Christopher Neal and Town Council From: Jon Barlow, Interim Town Administrator Subject: Discussion ofDeport Hill RFQ Response Date: July 18, 2022 At the May 2, 2022 Town Council meeting staff was directed to solicit interested firms to assist in the preparation of a site plan and a study to determine the best use oft the Depot Hill property. Please find attached a copy ofthe RFQ that was prepared to assist us in selecting a firm to perform the study. In an effort to solicit as many bids as possible, we have posted or mailed the RFQ to the following: Town ofLouisburg web site Placed an ad in the Franklin Times NC Chapter of the American Planning Association web site NC Downtown Development web site Benchmark Planning Kimley-Horn Associates Rose and Associates The Wooten Company UNC SOG Development Finance Institute Raynor Realty - Cory Thornton Timeline: A submission deadline of. July 5 was set to receive proposals. Responses: Only one response from GWP Developers, LLC was submitted. Review: The RFQ from GWP Developers was reviewed by and sub-committee of Town Council members Mayor Neal, Emma Stewart and Bobby Dickerson as well as Town Administrator Barlow, Planning Director Slaytor and Economic Development Director Wilkins. The review committee met in-person with the members ofGWP on Thursday, July 14 to get a better understanding ofthe skills and ability to produce the intended product. Recommendation: A recommendation from the review committee will be presented at the Town Council meeting on Monday, July 18. (919) 496-4145 * FAX (919) 496-6319 * mantinebomotousbupcon Town of Louisburg Depot Hill Market Study and Program Analysis - RFQ Facility Scope 11,760 SF Historic Masonry Structure 1.37 AC Site Information provided: A&E plans and specifications Information available at contract: current construction cost estimates and contracts, NCDOT Use Agreement, RFQ - Required Information to Include 1. Project Approach Narrative and Anticipated Timeline 2. Team Organization Chart 3. Team Primary Contact Information 4. Previous Team Collaboration Projects 5. Key Team Members a. Responsibility Assignment b. Related Expertise C. Experience and Role on Related Projects d. Current Workloads and/or Capacities e. Licenses/Credentials/Professional Affiliations f. Contact Information, how long in business and business ownership status Rating Criteria 1. Expertise of Team Members for Assigned Responsibilities 2. Experience with Similar Recent Projects 3. Capacity to Complete Work 4. Knowledge of Marketplace 5. Past Team Collaboration 6. Location of Primary Office and of Key Team Members 7. Minority and/or Women Owned Status PHASE-I Project Scope Market Study and Program Analysis: Analyze a minimum of three options for the use of the Depot Hill facility in sufficient detail that will enable the Town of Louisburg to clearly understand (1) the market viability, (2) relative costs to complete and (3) ongoing staffing requirements and operating costs for each option. Option-1: Consistent with current plans, analyze the use of Depot Hill for (a) Hall-A a civic gathering space/assembly occupancy, (b) commissary kitchen for use by incubator or existing food service businesses, and (c) Hall-B auditorium with stage and AV. Consideration shall be given to a fourth unprogrammed area (east end cap) in how it may or may not benefit other program requirements. Questions to be answered: A. Is what is presently proposed viable in the market today? B. What are the likely costs to complete given the current market conditions? C. What is the range of potential operating costs and staffing requirements along with any recommendations? 1 Town of Louisburg Depot Hill Market Study and Program Analysis - RFQ Option-2: Assess the feasibility of completion and use of Hall-A (civic gathering/assembly space) and support facilities without the Commissary or Hall-B program uses. Questions to be answered: A. What are the likely costs to complete and operate Hall-A (civic gathering/assembly space) with required restrooms and with a limited catering/warming kitchen space? along Option-3: Assess the costs to complete and ongoing costs to maintain the facility with no programmed use of any of the spaces. Questions to be answered: A. What are the likely costs to complete and secure the shell and maintain the building/site with no programmed use of the space? Option-4: Are there other uses that may provide an alternative use of the facility that are not being considered? Questions to be answered: A. What have we not thought of that should be considered? Deliverables: 1. A minimum oft three case studies of similar, existing facilities in markets of comparable size and demographics (include project attributes, budgets, successes or failures, etc.) 2. Definition of Depot Hill Market Area 3. Assessment of Demand Within Market Area 4. Inventory and Assessment Market Area Competition 5. Construction Costs Update 6. Staffing, Operational Plans and Approximate Costs (including Marketing and Promotions) 7. Recommendations: and/or Considerations of each Option 2 Town of Louisburg Depot Hill Market Study and Program Analysis - RFQ Following the completion of Phase-1, the Town of Louisburg intends to undertake Phase-II through a second RFQ process or may opt to continue with the Phase-I Team. PHASE-II Project Scope - "Design and Make-Ready": Analyze current A&E plans and propose modifications as needed to optimize facility fori the intended use selected by the Town of Louisburg. Include updated construction costs and recommended staffing charts and operational budgets. The Phase-II Team shall provide the following: plans, costs estimates and budgets for selected option. 1. Complete A&E plans (or modifications to current plans) for the building and site. 2. Updated construction cost estimates for project scope. 3. Complete Business Plan (including: staffing chart, and year-1 operating budgets, marketing/promotional plans and strategies, etc.). Submission Deadline: A completed RFQ must be submitted no later than 12:00 am on July 5, 2022. If by Mail: 110 W. Nash St Louisburg, NC 27549 In Person: 110 W. Nash St Louisburg, NC 27549 Please mark to the Attention of Philip Slayter, Planning Director on the outside of the package. Questions: Philip Slayter, Planning Director Town of Louisburg (910) 496-4145 3 Town of Louisburg - Depot Hill RFQ Response GWP Developers, LLC Narrative: Real Estate development, whether undertaken by a municipality or a private developer, requires evaluating existing tenant types, building characteristics and requirements, location, population density, income levels, budget and many other variables. Developing real estate in a small to moderate sized town requires additional precision in project estimating and tenant mix as budgets are usually limited. The Depot Hill Project is positioned to be a showpiece for redevelopment for the town of Louisburg and set the stage for additional redevelopment and new development in the surrounding area. With the right mix of business and governmental uses GWP Developers, LLC (GWP) oelieves this project can be economically sustainable and support future growth in Louisburg. GWP currently has projects underway from Wake Forest, NC to South Hill, NC and East to the coast of NC. Our partners have completed retail projects from big box to "mom and pop", office from high-rise to single story, warehouse, and residential. GWP is working in markets both smaller and larger than Louisburg and have extensive expertise and experience in developing small to medium size markets. While this project will be completed under GWP Developers, LLC, we have partnered with Cory Thornton and Dustin Moore to utilize their local contracting and real estate expertise, as well as their community relationships. GWP partners all live within 30 minutes of Louisburg and are very familiar with the market. Cory and Dustin work in the market daily and bring a "boots on the ground" intimacy with Louisburg that is invaluable to the analysis. While GWP is currently involved in multiple projects throughout North Carolina and Virginia, we have the capacity to complete this analysis in a timely manner. Deliverables will be consistent with Section "E" in the Louisburg Depot Hill RFQ document. The analysis will be completed within 90 days of the acceptance of this quote. The cost of this analysis is $45,000. We appreciation your time and consideration. 1/Page Recent Projects Below you will find some of our recent collaboration projects, both completed and under construction. This is not an exhaustive list but does represent projects of similar size to Depot Hill. Warrenton, NC - 123 N Main St. - 8,000 sq ft Renovated building and recruited national manufacturing tenant to occupy space, Brought 15 jobs to downtown Warrenton. WARRENTON SUPPLY CO, Warrenton, NC - 124 N Main St. = 10,000 sq ft Recruited new anchor tenant (restaurant), renovated and leased all vacant space. In the process of redeveloping 4 apartments on the second floor. 2/Page Warrenton, NC - 105 East Franklin St. = 20,000 sq ft The Dameron building is currently under redevelopment and will have 22 apartments on the second floor with ground floor retail. The Dameron project is the largest redevelopment project in Warrenton to date. SSEX ARCHITECTURE Warrenton, NC = 307 East Macon St. - 30,000 sq ft Recruited new anchor grocery store and developing 24 new apartments on site. HOVEMBE ER WARRENTON TOWNE VILLAGE usi RENTON. 44 3Page Halifax, NC - 4S King St APT 102, Halifax, NC = 15,000 sq ft Completed renovation and reconstruction of historic building into 13 apartments and 4 retail units. éroup Wake Forest, NC = 306 S Allen Rd. - 20,000 sq ft This is a 4-acre redevelopment project that is in the process of rezoning and renovating into 30 apartments. - E M 4/Page Warrenton, NC - 142 South Main = 2,000 sq ft Renovated and opened distillery/bar (Locorum). IOCORUM - - 5/Page Key Members: Dustin Moore Dustin is a native to Franklin County, NC and currently resides in Louisburg. Having spent his whole life in Franklin County, Dustin has a true passion for the community he calls home. Before he transitioned to custom homebuilding, he owned and operated a large retail business in Wake County, NC where he gained more than a decade of retail and customer relationship experience that further enriched his natural ability to take great care of people with each and every interaction. With a vested interest in local community real estate and development, the transition to custom homebuilding was a natural jump to an industry that he always valued personally and began Colebrooke Custom Homes (CCH). At CCH, Dustin spearheads every aspect of the build process, from scoping out the perfect piece ofland to planning and executing a timeless architectural design. He himself is a daily presence on the job site, overseeing and collaborating with subcontractors to ensure everything stays on schedule and goes according to plan. Dustin takes pride in every single project, no matter the size or scope. Dustin holds an Unlimited General Contractor's license and is an active member in both the National Homebuilders Association and the Franklin County Homebuilders Association. In addition, he serves on the Franklin County Board of Adjustments. Dustin's experience with project management and design combined with his knowledge of the local market will be instrumental in the Depot Hill Analysis. Cory Thornton Cory has lived in Franklin County for most of his life and is currently a resident of The Town of Louisburg. After serving in the United States Marine Corps, he completed a Bachelor's in business and earned an MBA from The Jack Welch Management Institute. Most recently he purchased Raynor Realty, a Real Estate firm that has faithfully served Franklin County since 1987. Cory ran a commercial mechanical company and holds active H2 and H3 Mechanical Contracting Licenses in the State of North Carolina. He is also a Licensed Real Estate agent, a member of the NC Association of REALTORSO & National Association of REALTORSO. Cory's knowledge of the local market and realty experience will be key in this analysis. 6/Page Stacy Woodhouse Stacy Woodhouse is a resident of Warren County, NC and holds a Finance degree from American University's Kogod School of Business. Stacy has a broad range of real estate development and management experience including big box retail, office, warehouse, residential, and institutional underwriting. Stacy has underwritten over $5 Billion in real estate transactions and developed over $200 Million in real estate projects from Texas to New York. His knowledge and relationships among an array of asset classes bring a diversity of experience that will be crucial in evaluating the Depot Hill project. Randall Robinson Randall is a resident of Warren County, NC and graduated from Wingate University with a Bachelor of Science in Business Administration. His 25 years of experience in IT Sales/Consulting, a Restauranteur, Real Estate Sales/Property Management, and Business/Economic Development is a diverse background. Randall has been a broker in charge in NC & VA for over 10 years, Member of NC Association of REALTORSO & National Association of REALTORSO. Randall was recognized in the 2014 Triangle Business Journal 40 under 40 Leadership Award. His broker and business connections from Chapel Hill, NC to Richmond, VA are key to attracting and evaluating possible tenants for the Depot Hill Project. Michael Hurt Michael Hurt is a resident of Franklin County, NC and has been actively involved in real estate construction for over 20 years as an owner and General Contractor. He holds an Unlimited and Unclassified General Contractors License, Utility Construction License, and NCDOT Highway, Road, and Bridge License. Michael has built a broad range of asset types including office, retail, residential, multifamily (over 400 apartments), and industrial. He is also one of the leading historical revitalization specialists in the southeast. Michael's broad range of development and construction experience will enable the team to give an accurate and realistic project analysis. 7IPage Team Organization & Key Roles: Stacy Woodhouse Michael Hurt Randall Robinson Dustin Moore Cory Thornton Tenant Mix Construction & Tenant Real Estate Selection & Estimating Evaluation & Construction Broker, Local Evaluation Recruitment Liaison Primary Contact Information: Cory Thornton 203 W Nash St Louisburg, NC 27549 olv/@raynorealync.com C: (919) 530-0355 O: 919) 496-4490 8Page LOUISBURG NORTH CAR OLIN. A Charming Since. 1779 MEMORANDUM To: Mayor Christopher Neal and Town Council From: Jon Barlow, Interim Town Administrator Subject: Code of Ethics for Town Officials of the Town ofLouisburg Date: July 18, 2022 Please find attached a draft Code of Ethics for Town Officials of the Town ofLouisburg. Ihave used a similar model in other communities that I have served and have found it to be well received. I should point out this Code is only a suggested set of guidelines and not be a substitute for law. Its written SO it covers the expectations of ALL board members including planning board, board of adjustment and any other boards created by Town Council. Lastly, this Code also serves a rules of! procedure guide for the conduct of board meetings including town public hearing, quasi-judicial hearings, budget hearings, closed sessions, etc. Recommended Action: Adopt the Code of Ethics for Town Officials of the Town ofLouisburg. (919) 496-4145 * FAX (919) 496-6319 * Maninetomotoustupen CODE OF ETHICS FOR TOWN OFFICIALS OF THE TOWN OF LOUISBURG, NORTH CAROLINA The stability and proper operation of democratic representative government depends upon the continuing consent of the governed, upon the public confidence in the integrity of the government and upon responsible exercise of the trust conferred by the people. Government decisions and policy must be made and implemented through proper channeis and processes of the governmental structure. The purpose of this Code is to establish guidelines for ethical standards of conduct for the Mayor, Council members, and appointed Boards and all references herein to Town Officials shall be understood to include: the Mayor, all Town Council Members, all Planning Board members, all Board of Adjustment members, and any member of a Town board that may be established by the Town Council. This Code should not be considered a substitute for the law. Town Officials must be able to act in a manner to maintain their integrity and independence yet must be responsible to the interests and needs of those they represent. Town Officials serve in an important advocacy capacity in meeting the needs of their citizens and should recognize the legitimacy of this role as well as the intrinsic importance of this positionto the proper functioning of representative government. At the same time, Town Officials must, at times, act in an adjudicatory or administrative capacity and must, when doing SO, act in a fair and impartial manner. Town Officials must know how to distinguish these roles and when eachrole is appropriate, and they must act accordingly. Town Officials must be aware of their obligation to conform their behavior to standards of ethical conduct that warrant the trust of their constituents. Each Town Official must determine appropriate conduct within his or her own conscience. I. A Town Official shall obey the law. Town Officials shall support the Constitution of the United States, the Constitution of North Carolina and the laws enacted by the Congress of the United States and the General Assembly pursuant thereto. Town Officials specifically acknowledge and agree to comply with the requirements of NCGS 14-234 entitled "Public Officers or Employees Benefiting from Public Contracts; Exceptions. I II. A Town Official should uphold the integrity and independence of his or her office. Town Officials should demonstrate the highest standards of personal integrity, truthfulness, honesty, and fortitude in all their public activities in order to inspire public confidence and trust intown government. Town Officials should participate in establishing, maintaining, and enforcing, and should themselves observe high standards of conduct SO that the integrity and independence of their office may be 1 preserved. The provisions of this Code should be construed and applied to further these objectives. III. A Town Official should avoid impropriety and the appearance of impropriety in all his or her activities. It is essential that town government attract those citizens that are best and willing to serve. Town Officials have legitimate interests, economic, qualified professional, and vocational, of a private nature. Town Officials should not be denied, and should not deny to other members or citizens, the opportunity to acquire, retain and pursue private interests, economic or otherwise, except when conflicts with their responsibility to the public cannot be avoided. Town Officials must exercise their bestj judgment to determine when this is the case. Town Officials should respect and comply with the law and should conduct themseives at all times in a manner that promotes public confidence in the integrity of their position in town government. Town Officials should not allow family, social, or other relationships to unduly influence their conduct or judgment and should not lend the prestige of their position to advance the private interests of others; nor shouid they convey, or permit others to convey, the impression that they are in a special position to influence them. Town Officials shall not grant any special consideration, treatment, or advantage to any citizen beyond that which is available to every other citizen. Any member of the Town Councii or appointed Board, who has an interest in any official act or action being considered, should publicly disclose on the record the nature and extent of such interest, and should withdraw from any consideration of the matter if excused pursuant to NCGS. S 160A-75. IV. A Town Official should perform the duties of the office diligently. While the duties of the office prescribed by law, Town Officials should give precedence performing to these duties over other activities. In the performance of prescribed duties, the following standards should apply: A. Legislative responsibilities 1. Town Officials should actively pursue policy goals they believe to be in the best interests of their constituents within the parameters of orderly decision-making, rulesof the Town Council and open government. 2. Town Officials should respect the legitimacy of the goals and interest of other Town Officials and should respect the rights of others to pursue goals and policies different from their own. B. Adjudicative responsibilities 1. Town Officials should be faithful to the general and local laws pertaining 2 to the office and strive for professional competence in them. They should be unswayed by partisan interests, public clamor, or fear of criticism. 2. Town Officials should demand and contribute to the maintenance of order and decorum in proceedings before the Town. 3. Town Officials should be honest, patient, dignified and courteous to those with whom they deal in their official capacity, and should require similar conduct of other Town Officials. 4. Town Officials should accord to every person who is legally interested in a proceeding before the Town full right to be heard according to law. 5. Town Officials should dispose promptly of the business of the Town for which they are responsible. C. Administrative responsibilities 1. Town Officials should clearly distinguish legislative, adjudicatory, and administrative responsibilities and should refrain from inappropriate interference in the impartial administration of the Town. 2. Town Officials should conserve the resources of the Town in their charge. They should employ Town equipment, property, funds, and personnel only in legally permissible pursuits and in a manner that exemplifies excellent stewardship. 3. Town Officials who become aware of improper conduct by another Town Official shouldpromptly inform the Mayor and/or Town Administrator. 4. Town Officials should not employ or recommend the appointment of unnecessary employees and should exercise the power of employment only on the basis of merit, avoid avoritism and refrain from illegal discrimination and nepotism. V. A Town Official should conduct the affairs of the Town in an open and public manner. Town Officials should be aware of the letter and intent of the State's Open Meetings Law and should conduct the affairs of the Town consistent with the letter and spirit of that law, to inspire and maintain public confidence in the integrity and fairness of town government and the office held by each Town Official. Consistent with this goal of preserving public trust, Town Officials should be aware of the need for discretion in deliberations where the lack of discretion would pose a threat to the resources of the Town, to the reputation of current or potential Town employees, to orderly and responsible decision making to the integrity of other governmental processes or to other legitimate interests of the Town. VI. A Town Official should regulate his or her extra governmental activities to minimize the risk of conflict with his or her official duties. 3 A. Town Officials should inform themselves concerning conflict of interest and other appropriate state and federal laws and should scrupulously comply with the provisionsof such laws. B. Town Officials should refrain from financial and business dealings that tend to reflect adversely on the Town or to interfere with the proper performance of official duties. C. Town Officials should manage their personal financial interests to minimize the number of cases in which they must abstain from voting on matters coming before the Town. D. Information acquired by Town Officials in their official capacity should not be used or disclosed in financial dealings or for any other purpose not related to official duties. VII. A Town Official should refrain from political activity inappropriate to his or her office. A. Town Officials have a civic responsibility to support good government by every available means, to continue to inform and educate the citizenry about the affairs andprocesses of town government, and to make themselves available to citizens of the Town SO that they may ascertain and respond to the needs of the community. In doing SO, Town Officials may and should join or affiliate with civic organizations whether partisan or non-partisan, may and shouid attend political meetings, may and should advocate and support the principles or policies of civic or political organizations consistent with the Constitution and laws of the United States and North Carolina. B. Candidates for the office of Town Council member, including incumbents: 1. Shouid inform themselves concerning the laws of this state with regard to campaigns and relevant disclosure requirements and should scrupulously comply with the provisions of such laws; 2. Should not make pledges or promises of conduct in office that they will not or cannot perform or would be illegal if it were performed; 3. Should not misrepresent their identity, qualifications, present position, or other fact and 4. Should avoid pledges or promises of conduct in office other than the faithful andimpartial performance of the duties of the office. VIII. A Town Council Member shall attend ethics education training as required by statute. All members of governing Town Council shall receive a minimum of two clock hours of ethics education within 12 months after initial election or appointment to the office, and again within 12 months after each subsequent election or appointment to the office in accordance with NCGS 160A-84. The ethics education shall cover laws and principles that govern conflicts of interest and ethical standards of conduct at the local government level. The ethics education may be provided by various 4 qualified sources, including the NC League of Municipalities and UNC School of Government, or other qualified sources of the Town Council's choosing. The Town Clerk to the Town Council shall maintain a record verifying receipt of the ethics education by each memberof the Town Council. IX. Confidentiality agreement. A. In consideration of any/all points discussed as part of any Town Council Meeting deemed to be "Exempt Confidential Information" (Closed Session) or indeed any personal information pertaining to that of a town employee, a Town Official: 1. Shall not communicate, disclose, or make available any part of the Confidential Information discussed to that of a third party; 2. Formally agrees not to directly or indirectly, or permit others to use, the Confidential Information other than for addressing an action point; 3. Shall not make any announcement of disclosure in connection with the Confidential Information discussed as part of a closed session defined in NCGS 5143-318.11 without the prior approval of Town of Louisburg Town Council. B. The obligations of confidentiality and non-use will not apply with respect to any of the following: 1. Information which is generally available to the public; 2. Information which is subsequently disclosed by third parties having no obligations of confidentiality; 3. Information which is or becomes generally available to the public via Town Minutes, through no act or default on the part of the Town Official. C. Without prejudice to the generality of Section 2, information shall not be deemed to be generally available to the public by reason only that it is known to only a few of those people to whom it may be of interest and a combination of two or more parts of the Confidential Information shall not be deemed to be generally available to the public by reason only of each separate part being SO available. D. Each Town Official is responsible for ensuring that all measures necessary are taken to secure the confidentiality of such information, including but not limited to: 1. Keeping separate all Confidential Information and all information generated basedon the Confidential Information discussed as part of a closed session and records; 2. Ensure that, all documents and any other material bearing any confidential information is left at the Town Offices following a meeting SO that it can be correctly disposed of; 5 3. No Town Official is to use, reproduce, transform, or store any of the confidential information whatsoever outside the Town Council Chamber without the prior approval of majority of the Town Council and with the Town Administrator's full knowledge; 4. No Town Official is to obtain from employees having access to the Confidential Information, their undertakings being to maintain the same as confidential and taking such steps as may be reasonably desirable to enforce such obligations; E. The failure by an individual Town Official to comply at any time with any one or more of the terms or conditions of this agreement may result in a formal public reprimand by a majority vote of the Louisburg Town Council. F. All rights in the Confidential Information are reserved by the party to which it belongs andno rights or obligations other than those expressly set out in this agreement are granted orto be implied from this agreement. G. The rights, duties and obligations of the Town Council and its Members and the validity, interpretation, performance, and legal effect of this agreement shall be governed and determined by the laws of North Carolina. 6 X. TOWN OF LOUISBURG RULES OF PROCEDURE A. ORGANIZATIONAL MEETING At the first regular meeting in December, following a general election in which Town Council members are elected, the newly elected members shall take and subscribe to the oath of office, immediately following dispensing with any routine unfinished business of the prior Town Council (such as approval of minutes). As the next order of business, the Town Council shall elect a Mayor Pro Tempore and conduct any other organizational business deemed appropriate (such as committee appointments). At the first regular meeting of the Planning Board and the Board of Adjustment in January, the Board shall elect, from its members, a Chair and Vice-Chair. The Chair shall preside over the meetings and retain the ability to make and second motions and vote on all matters before the Board. The Vice-Chair shall fulfill the role of Chair in the absence or disability of the Chair. B. OFFICE OF MAYOR The Mayor shall preside at all meetings of the Louisburg Town Council. To address the Town Council, a member must be recognized by the Mayor. The Mayor shall have the following powers: 1. To rule motions out of order, including any motion patently offered for obstructive or dilatory purposes; 2. To determine whether a speaker has gone beyond reasonable standards of courtesy in their remarks and to entertain the rule on objections from other members on this ground; 3. To entertain and answer questions of parliamentary law or procedure; 4. To call a brief recess at any time; 5. To adjourn in an emergency; 6. To vote on matters before the Town Council in the event of a tie number of votes by members of the Town Council. At the organization meeting, Town Council shall elect from among its members, a Mayor Pro-tempore to serve at the pleasure of the Town Council. The election shall be for a four (4) year term and the official shall perform the duties of 7 Mayor during any absence or disability of the Mayor. If the Mayor Pro-tempore should need to fulfill the duties of the Mayor, he or she shall retain the duties of a Council member including voting on all matters and shall count towards the establishment of a quorum. 8 . QUORUM A majority of the actual membership of the Town Council, excluding vacant seats, shall constitute a quorum. A member who has withdrawn from a meeting without being excused by a majority vote of the remaining members present shall be counted as present for the purpose of determining whether a quorum is present. A quorum of the Town Council shall be required at all public hearings required by state law. If a quorum is not present, the hearing shall be deferred to the next regular public hearing meeting, without further advertisement. D. REGULAR MEETING The Louisburg Town Council shall hold its Regular Meeting on the second Tuesday of each month, except that if a regular meeting is a legal holiday, the meeting shall be rescheduled. All meetings shall be held in the Louisburg Town Council Chambers unless notice is otherwise given. E. AGENDA The Town Administrator shall prepare the agenda for the meeting. Any elected Town Council member may direct the Town Administrator to place an item of business on the agenda. For the agenda to be published and distributed in a timely manner, such directive needs to be received on or before the due date requested by the Town Administrator. Requests for items of business to appear on the agenda from individuals or organizations will be placed on the agenda under Public Comment or Public Presentations, at the discretion of the Town Administrator. Any request for an item of business to appear on the agenda from individuals or organizations must be received at least one (1) week before the meeting. The agenda should include all items, particularly action items and announcements, which are expected to be considered. Any item placed on the agenda, whether to be discussed openly or approved in consent, should have an exhibit sheet accompanied by supporting documents. These exhibit sheets should have a concise but understandable description of what the Town Council is to consider. This procedure would also be required of any item placed on the agenda during the "approval of agenda" section of the Town Council meeting. Every effort should be made to not add an agenda item during the meeting. Each Town Council member shall receive a copy of the draft agenda and supporting exhibits in advance of the regularly scheduled Town Council meeting. 9 F. ORDER OF BUSINESS Items shall be placed on the agenda according to the Order of Business. Unless modified by a Town Council vote, the order of business for each regular meeting shall be as follows: Welcome/Call to Order Convocation Pledge of Allegiance Approval of Agenda RemogntonsPresentations Discussion and Possible Action Items Town Attorney's Report Town Administrator's Report Open Forum/Public Comments Mayor's Report Council member Comments Adjournment Boards and/or Committees may, from time to time, need to make a report to the Town Council or recommend action to the Town Council. Reports or recommendations from any Board or Committee to the Town Council will be piaced in the "Discussion and Possibie Action Items" portion of the agenda. G. PUBLIC ADDRESS TO THE TOWN COUNCIL Any individual or group may address the Town Council during the Public Comment portion of the meeting. A fixed standard time limit shall be established under these rules, announced at the beginning of each public comment session whether at a regular meeting (3 min) or a public hearing (5 min), and strictly adhered to with the Finance Town Clerk being a timekeeper. A standard statement should be read prior to each of these comment sections that explain to the speaker and audience those comments are welcome but certain aspects (personnel for an example) cannot be discussed. The speaker should also be told that, in general, the Town Council will take comments under consideration but will probably have no comment in that meeting. In the event the Mayor determines that numerous or lengthy comments will be offered, he or she may, in order to ensure that all positions are heard: 10 1. Designate a spokesperson for a group of persons propounding a certain position; 2. Arrange for delegates from any such group to speak whenever the numbers of such persons propounding a particular position exceeds the capacity of the Town Council Chambers; and 3. Arrange for the Louisburg Police Department to ensure that such meeting is conducted in an orderly manner. H. PUBLIC HEARING Public hearings required by law or deemed advisable by the Town Council shall be organized by special order, adopted by a majority vote that sets forth the subject, date, place and time of the hearing, as well as any rules regarding the length of time for each speaker, and other pertinent matters. The rules may include, but are not limited to: 1. Fixing the maximum time allotted to each speaker; 2. Providing for the designation of spokespersons for groups of persons supporting or opposing the same positions; 3. Providing for the selection of delegates from groups of persons supporting or opposing the same positions when the number of persons wishing to attend the hearing exceeds the capacity of the Town Council chambers (so long as arrangements are made for those excluded from the Town Council chambers to listen to the hearing); and 4. Provide for the maintenance of order and decorum in the conduct of the hearing. All notice and other requirements of the Open Meetings Law applicable to town council meetings shall also apply to public hearings at which a majority of the Town Council is present. A public hearing for which any notices required by the Open Meetings Law or other provisions of the law have been given, may be continued to a time and place certain without further advertisement. The requirements of Rule 2(c) shall be followed in continuing a hearing at which a majority of the Town Council is present. At the time of the hearing, the Mayor, or his or her designee, shall call the hearing to order and then preside over it. When the allotted time expires or when no one wishes to speak who has not done SO, the presiding officer shall declare the hearing closed. 11 In order to provide sufficient time for all public hearings and speakers, a public hearing cannot serve as a question and answer time. Town staff will direct in all notices required by law, that in order to allow sufficient time for all public hearings, any questions or research should be conducted by any such interested person(s) in advance of the public hearing. Town staff may facilitate the public's edification by using the Town's website or maintaining a printed file accessible to the public which contains relevant information about the subject matter of the public hearing. I. QUASIJUDICIAL HEARING PROCEDURAL GUIDELINES 1. Purpose and General Information. Quasi-judicial decisions arise in a variety of local government settings. In Louisburg, the Town Council holds quasi- judicial hearings for special use permits, and for certain other applications. The Board of Adjustment ("BOA") holds quasi-judicial hearings for variance and reasonable accommodation requests and appeals of staff decisions, including zoning and minimum housing appeals. The Town Council and BOA are collectively referred to in this policy as the "Hearing Body." During a quasi-judicial hearing, the Hearing Body must hold an evidentiary hearing and make its decision based on the Written and oral evidence presented. Unlike legislative decisions, a quasi-judicial decision must be based solely on the evidence presented and cannot be based on opinions of members of the Hearing Body. Put differently, a quasi-judicial decision is one that requires the Hearing Body to find facts and exercise discretion when applying the standards of an ordinance to a specific situation. This policy is adopted to provide flexible guidance for the conduct of quasi- judicial hearings. It is designed to be used in conjunction with the other Rules of Procedures. This policy is based on North Carolina law but is not designed to create any additional rights or obligations and does not provide any procedural rights to any person. The failure of Hearing Body or any other person to adhere to this policy shall not affect the validity of any hearing, action taken, or decision made. To the extent there is conflict or any discrepancy between these recommended procedures and the NC General Statutes, case law, or Town ordinances (collectively "law"), the law shall prevail. 2. Who May Appear at the Hearing? Corporations must be represented by a licensed attorney. Non-corporate applicants and individuals opposed to the application that have standing may represent themselves or be represented by an attorney, legal counsel is strongly advised. Any party may call expert or lay witnesses to testify. Engineers, architects, real estate agents, 12 planners and other non-attorneys may only appear as expert witnesses and may not represent an applicant or those opposed to an application, unless the representation is approved by the Hearing Body before witnesses are sworn and evidence is introduced. The Hearing Body reserves the right to deny non-attorney representation for non-corporate parties. 3. Prior to the Hearing. All exhibits and evidence to be introduced during the hearing and names and addresses of all lay and expert witnesses should be submitted to the Town at least ten (10) days before the hearing date and electronic PDF files are preferred. The Town may designate staff members responsible for processing each application (sometimes 'Staff Representative) as the person to whom such exhibits should be submitted. Copies should also be provided to any other known parties. (a) If prior to the hearing an applicant or a person opposed to an application has questions about the process, he or she may contact the Staff Representative for more information. It is inappropriate for anyone to contact any member of the Hearing Body. (b) Prior to the hearing the Staff Representative, applicant or other person may suggest time limits for testimony and agreement on other procedural matters. The applicant may also request a continuance prior to the hearingby contacting the Staff Representative. 4. Responsibilities of the Presider. The Mayor (if the hearing is before the Town Council) or the Chair of the BOA (ift the hearing is before that body), shall preside over the hearing (the "Presider"). The Presider must recognize speakers and members of the Hearing Body before they are heard. The Presider may rule on any objections or requests from participants in the hearing regarding the procedure of the hearing or evidence presented. The Presider may rule on the competence (i.e., the admissibility) of evidence withor without an objection from a participant. The Presider should allow everyspeaker to be heard but may limit and/or cut off evidence or testimony that is irrelevant, repetitive, incompetent, inflammatory, or hearsay. The Presider may place reasonable and equitable limitations on the presentation of evidence, arguments, and cross-examination of witnesses SO that the matter at hand is heard without undue delay. The Presider may impose additional requirements and take actions as may be necessary or desirable to facilitate the fair and efficient conduct of the hearing and other agenda tems. Additional requirements or actions may include requiring witnesses to sign up in advance of the hearing, 13 allocating reasonable time for each side to present their testimony and evidence, limiting the overall time for the hearing, and delaying a hearing to a later point in the agenda or continuing the hearing to a later meeting. 5. Responsibilities of the Hearing Body. Members of the Hearing Body must make their decision solely on the written and oral evidence presented and cannot consider information obtained through independent research or undisclosed ex parte communications. Members may, however, view the premises at issue before the hearing SO long as at the commencement of the hearing the members disclose the site visit and any facts or information collected from the site visit that is relevant to the case. Likewise, at the commencement of the hearing, or during the hearing if it only becomes evident then, members must disclose any specialized knowledge they may have that is relevant to the case. Members of the Hearing Body should refrain from ex parte communications about upcoming or ongoing cases with any parties or other members of the Hearing Body, and at the commencement of the hearing, members must disclose ex parte communications. Members may seek and receive general, technical information pertaining to the case from Town staff prior to the hearing, but Town staff should provide the information to all during the hearing before the entire Hearing Body. 6. Responsibility of Those Who Testify. In addition to other responsibilities of the applicant and others who testify ('witnesses"), witnesses shall observe time limits imposed on testifying uniess the Presider grants additional time. Witnesses shall avoid hearsay evidence. Hearsay evidence is testimony that the witness does not know of his or her own personal knowledge, including that which someone else told the witness and the use or introduction of signed petitions and letters. Witnesses shall focus their testimony on the applicable criteria. Unless they are a qualified expert, witnesses are not competent to testify about the impact of a proposed land use on the value of nearby property, the danger to public safety resulting from increases in traffic or other matters that require special training or expertise like the level of noise that will be generated. Non-expert witnesses are competent to testify about facts known to them and their opinion SO long as it is not about the impact on property values, the danger to public safety from increases in traffic, and other matters that require special training or expertise. 7. Conduct of the Hearing. The order of business for each hearing should be as follows: (a) All persons, including Town staff, who intend to present evidence 14 must be Sworn in. (b) The Presider shall call the case as advertised on the agenda. The Presider may state something along the lines of: i. This matter requires this body to conduct a quasi-judicial hearing, which means the body must find facts and base its decision upon the application of the ordinance standards/criteria and the competent, substantial, and material evidence received during this hearing. All testimony must be competent and not repetitious. Speculative opinions and general expressions of fear of potential increases in crime, traffic or impacts on property values do not constitute competent evidence. (c) Ift the applicant is to be represented by anyone other than a licensed attorney, the applicant shall request the consent of the Hearing Body for such representation as set forth in Section II, above. (d) Members of the Hearing Body should disclose the following: i. Any site visits; ii. Ex parte communications; iii. Specialized knowledge they have relevant to the case; iv. Whether they have a fixed opinion that is not susceptible to change based on what they learn at the hearing; a) Whether they have a close familial, business, or other relationship with the applicant or other affected person; b). Whether they have a financial interest in the outcome of the case; and c). Any other information relevant to determining whether a conflict of interest exists. (e) If necessary, the Hearing Body will vote on recusal of members at this time. A member shall not participate in the hearing ift the member has a fixed opinion prior to the hearing that is not susceptible to change; has engaged in undisclosed ex parte communications; has a close family, business or other associational relationship with the applicant or an affected person; or has a financial interest in the 15 outcome of the matter. (f) The applicant or other affected person (having been sworn in) shall present any objections they may have to a member's participation. If an objection is made to the participation of a member based on personal bias or other ground for disqualification, the Hearing Body shall determine the matter as part of the record. (g) The Presider shall open the hearing. (h) The Staff Representative shouid present the staff report. (1) Evidence and the appropriate number of exhibits that were not provided by the deadline in advance of the hearing shall be given to the Finance Officer/Town Clerk and any opposing party. The Finance Officer/Town Clerk shall number the exhibits if they have not already been numbered and shall distributeto Hearing Body. If an exhibit is presented it becomes part of the record and will not be returned. () If all parties are represented by attorneys, the applicant, foilowed by any opposing party, may present a brief opening statement. (k) The applicant shall present the arguments and evidence in support of the application. The applicant shall address applicable approval criteria. Members of the Hearing Body or any attorney representing the Hearing Body, or the Town may ask questions for clarification. If all parties are represented by attorneys, opposing parties may ask questions of (cross-examine) the applicant (ifthe applicant testifies) or supporting witnesses ati this time. Ift those opposed to the applicant are not represented by attorneys, the Presider may prefer to delay cross-examination until all sides present their arguments and evidence. Persons opposed to granting the application shall present the arguments and evidence against the application based on the applicable approval criteria. Members of the Hearing Body or any attorney representing the Hearing Body, or the Town may ask questions for clarification. Ifall parties are represented by attorneys, the applicant may cross-examine the speaker or opposing witnesses at this time. (m) The Presider will provide Town staff and/or their attorney an 16 opportunity to present relevant arguments or evidence. (n) If cross-examination was not done at the conclusion of each side's case, then both sides will be permitted to cross examine previous witnesses. Those who oppose the application should cross examine the applicant (if the applicant testified) and the applicant's supporting witnesses first. Then the applicant may cross examine those witnesses who spoke in opposition to the application. Both sides will be permitted to present rebuttals to opposing testimony. Both sides may, as necessary, object to incompetent evidence and testimony (such as improper lay opinion testimony and hearsay) offered by other witnesses. The Presider may rule on such objection or take it under advisement. (0) After all evidence has been presented, the Presider may ask the parties if there is additional relevant information that has not been presented that would make a continuance in order. The Presider will entertain objections and rule on the admissibility of the evidence or exhibit. (p) Unless the Presider continues the public hearing to the next regularly scheduled quasi-judicial meeting of the Hearing Body or to a publicly stated date, time and location, the Presider shall close the period for public discussion. The Hearing Body shall publicly discuss the case without further general input from the public. Members ofthe Hearing Body, however, may seek clarification or ask questions of persons previously sworn on any piece of evidence presented. Cross- examination and rebuttals may be made only on new evidence presented. The hearing shall be closed after Hearing Body deliberations are complete. (q) Unless the hearing has been continued, the Hearing Body shall render a decision on the matter, or, if it SO chooses, recess the case to the next regularly scheduled quasi-judicial meeting of the Hearing Body or to a publicly stated date, time, and location. The Town Council may approve an application by vote of a majority of the members. The BOA may approve variances only by a vote of four- fifths of the members of the Board (excluding vacant positions and members who are disqualified from voting, if there are no qualified alternates available). (r) Any motion to approve an application that does not receive the required majority or super-majority vote means the application has 17 been denied. If an application has been denied, findings of fact and conclusions must be made to support that decision. (s) The Hearing Body may attach conditions to the approval of any application in accordance existing state law and Town Code. (t) A written decision must be approved for every quasi-judicial application, generally at the next scheduled meeting of the Hearing Body. As part of the written decision, the Hearing Body must make findings of fact and conclusions as to applicable standards and any conditions. 8. Burden of Proof, Testimony, and Evidence. (a) Burden of Proof for Special Use Permits and other required application Approvals: The applicant has the burden of producing sufficient substantial, competent, and material evidence for the Hearing Body to conclude that the standards of the applicable ordinances have been met. If the applicant meets all the standards of the ordinance, the applicant is entitled to approval unless those opposed to the application produce substantial, competent, and material evidence that one or more of the standards have not been met. If the applicant faiis to put forth sufficient evidence to show they meet all the criteria, then the Hearing Body must deny the application. For example, for a special use, the applicant must establish that the application meets the specific criteria for the specific use proposed and that it meets all of the general criteria of the Ordinance. (b) Burden of Proof for Variances: The applicant has the burden of producing sufficient substantial, competent, and material evidence for the Hearing Body to conclude that unnecessary hardships would result from carrying out the strict letter of the zoning ordinance. The BOA must deny a request for a variance unless the applicant puts forth sufficient evidence that all oft the criteria of ordinance have been met. (c) Burden of Proof for Appeals: Appeals of administrative decisions are only quasi-judicial decisions in the limited sense that they require the same due process protections as are given in other quasi- judicial proceedings (for example, the rights to present evidence and cross examine). Unlike other quasi- judicial decisions, however, an appeal of an administrative decision presents a question of law, which the 18 Hearing Body considers de novo. "De novo" means the Hearing Body is not bound by the ordinance interpretation of Town staff. Instead, the Hearing Body must seek to interpret the ordinance SO asto give effect to the Town Council' intent when it adopted the ordinance. The Hearing Body shall not reverse or modify an administrative decision unless it finds that the administrative officer erred in the application or interpretation of the terms of the ordinance, Town Code, or related policies adopted by the Town. The other common rules of statutory construction apply as well. Appeals are typically in the nature of certiorari to the superior court as set forth in NCGS $160D-1402. (d) Testimony and Evidence: All lay and expert testimony, including the Town staff, must be sworn testimony. All persons wishing to speak will be given a reasonable time in which to be heard; however, groups are encouraged to select a spokesperson to speak for the group in order to avoid repetitive testimony. Inflammatory, irrelevant, repetitive, and incompetent testimony and hearsay is not permitted. The Hearing Body's decision must be based on substantial, competent, and material evidence. Substantial evidence is "that which a reasonable mind would regard as sufficiently supporting a specific result.' I Competent evidence is evidence that can be subjected to cross-examination, inspection, explanation, and rebuttal. Courts often refer to that is relevant to the issue being considered by the Hearing Body. i. Lay Versus Expert Testimony: As a general rule, anyone with relevant knowledge to the case may provide factual information, but only experts may provide opinion testimony. Lay witnesses should not provide opinion testimony, as this testimony is generally deemed incompetent. Expert testimony must be competent wherein the expert has qualifications relevant to the matter before the Hearing Body. Under NCGS S 160D- 1402()(3), expert testimony is required in three cases: a). The use of property in a particular way would affect the value of other property; b). The increase in vehicular traffic resulting from a proposed development would pose a danger to the public safety; and, C). Other matters about which only expert testimony would generally be admissible under the rules of evidence, such 19 asthe level of noise that will be generated. (c) Conditions of Approval. i. Conditions Generally: The Hearing Body may attach conditions to approvals of special use permits, variances, and such other approvals as law may permit. For special use permits and conditions must be reasonable and appropriate and limited to those that require changes in a project "that are necessary to bring the project into compliance with the standards" of the applicable statutes and ordinances. For variances, conditions must be "reasonably related to the variance.' . Conditions cannot require the applicant to take action with regard to a piece of property that is not a part of the application being considered, and conditions cannot require the alteration of a special use permit previously issued to a third party. ii. Conditions on Appeals Decisions: Unlike conditions on special use permits and variances, the Hearing Body's authority in an appeal is limited to reversing or affirming, wholly or partly, or modifying the staff decision. Moreover, the Hearing Body only has only the powers of the officer from whom the appeai is taken. An appeai of an administrative decision cannot be used to impose conditions or vary the ordinance. (d) Written Decision. The Hearing Body must reduce its decision to writing, and the written decision must reflect the Hearing Body's determination of contested facts and their application to the specific standards for the particular use and the general standards contained in ordinance for special uses, variances, and for reasonable accommodations. For approvals or denials of these types of applications, the Hearing Body should make conclusions as to each applicable standard as appropriate. Even if the Hearing Body denies an application because it fails to meet one or two criteria, the better practice is to make findings of fact and conclusions as to all standards, SO the record is clear in the event the decision is appealed. The Hearing Body should make findings of fact and conclusions that are relevant to the specific ordinance that is at issue in the appeal. Findings of fact must also be made to support conditions attached to any approval. The written decision must be signed by the Presider or other authorized member of the Hearing Body and becomes effective 20 upon filing with the Town Administrator. A copy of the written decision must be delivered to the applicant, property owner, and others as required by state law. (e) Withdrawal of the Application. An application or appeal will be considered to have been withdrawn under the following circumstances i, The applicant submits a written request to withdraw the application or appeal; ii. The property owner, if different than the applicant, submits a notarized request to withdraw the application or appeal; iii. The Hearing Body requests the applicant to furnish additional information within a specified period of time, and such information is not furnished by the applicant within the time period allowed; (f) Without prior notification to the Presider or Finance Officer/Town Clerk, the applicant does not appear at the scheduled hearing to testify regarding the merits ofthe application; or (g) The applicant appears at the scheduled hearing and requests that the application be withdrawn. (h) ReconsderatonRegpenng Substantive decisions on the merits of a request cannot be reconsidered and decided cases cannot be reopened following the approval of a written decision. If there has been a material change in circumstances, the case may be submitted as a new case. XI, ACTIONS TAKEN BY TOWN COUNCIL, PLANNING BOARD, AND BOARD OF ADJUSTMENT IN MEETINGS (Planning Board and Board of Adjustment shall be referred to as "Boards" or "Board") A. MOTION The Town Council and Boards shall proceed by motion. Any member may make a motion. B. SECOND REQUIRED A motion shall require a second. Any motion without a second shall fail. 21 C. ONE MOTION AT A TIME A member may make only one motion at a time. D. SUBSTITUTE MOTION A substitute motion is out of order while another substantive motion is pending. E. ADOPTION BY MAJORITY VOTE A motion shall be adopted by a majority of the votes cast, a quorum being present, unless otherwise required by these rules or the laws of North Carolina. F. DEBATE The Mayor (for Town Council) or Chair (for Boards) shall open the floor to discussion among the members on each motion, after a second is received, and shall preside over the discussion according to the following general principles: 1. The introducer (the member who makes the motion) is entitled to speak first. 2. A member who has not spoken on the issue shall be recognized before ar member who has already spoken. 3. To the extent possible, the debate shall alternate between opponents and proponents of the measure. G. RATIFICATION OF ACTIONS To the extent permitted by law, Town Council or Boards may ratify actions taken on its behalf but without its prior approval. A motion to ratify is a substantive motion. H. PROCEDURAL MOTIONS In addition to substantive motions, the following procedural motions, and no others, shall be in order. Unless otherwise noted, each motion is debatable, may be amended, and requires a majority vote for adoption. 1. To Adjourn. The motion may be made only at the conclusion of action on a pending matter; it may not interrupt deliberation of a pending matter. 22 A motion to adjourn (or recess) to a time and place certain shall also comply with the requirements of Rule 2(c). 2. To Take a Brief Recess. 3. Call to Follow the Agenda, The motion must be made at the first reasonableopportunly, or it is waived. 4. To Suspend the Rules of Procedure. The motion requires for adoption, a vote equal to two-thirds of the actual membership of the Town Council or Board, excluding vacant seats. The Town Council or Board may not suspend provisions of the rules that state requirements imposed by law on the Town Council or Board. 5. To Divide a Complex Motion and Consider It by Paragraph. 6. To Defer Consideration. A substantive motion, whose consideration has been deferred, expires one nundred (100) days thereafter unless a motion to revive consideration is adopted. 7. Call of the Previous Question. This motion is not in order until there has been at least ten (10) minutes of debate and every member has had an opportunity to speak once. 8. To Postpone to a Certain Time or Day. 9. To Refer to a committee. Sixty (60) days after a motion has been referred to a committee, the introducer may compel consideration of the measure bythe entire Town Council, whether the committee has reported the matter tothe Town Council. 10. To Amend. An amendment to a motion must be pertinent to the subject matter of the motion. An amendment is improper if adoption of the amendedmotion has the same effect as rejection of the original motion. A motion may be amended, and that amendment may be amended, but no further amendments may be made until the last-offered amendment is disposed of by a vote. 11. To Revive Consideration. The motion is in order any time within one hundred (100) days after the day of a vote to defer consideration. A substantive motion on which consideration has been deferred expires one nundred (100) days after the deferral unless a motion to revive consideration is adopted. 12. To Reconsider, This motion must be made by a member who voted with 23 the prevailing side, and only at the meeting during which the original vote was taken. The motion cannot interrupt deliberation on a pending matter but is in order at any time before actual adjournment. 13. To Rescind or Repeal, The motion is not in order if rescission or repeal of an action is forbidden by law. 14. To Prevent Reconsideration for Six (6) Months. The motion shall be in order immediately following the defeat of a substantive motion and at no other time. The motion requires for adoption, a vote equal to two-thirds of the actual membership of the Town Council or Board, excluding vacant seats. If adopted, the restriction imposed by the motion remains in effect for six (6) months or until the next organizational meeting of the Town Council or Board, whichever occurs first. I. RENEWAL OF MOTION A motion that is defeated may be renewed at any later meeting unless a motion to prevent reconsideration has been adopted. J. WITHDRAWAL OF MOTION A motion may be withdrawn by the introducer at any time before a vote. K. DUTY TO VOTE Every member must vote unless excused by the remaining members according to State law. A member who wishes to be excused from voting shall SO inform the Mayor, who shall take a vote of the remaining members. No member shall be excused from voting except upon matters involving the consideration of his own financial interest or official conduct. In all other cases, a failure to vote by a member who is physically present in the Town Council Chambers or who has withdrawn without being excused by a majority vote of the remaining members present shall be recorded as an affirmative vote. L. INTRODUCTION OF ORDINANCES A proposed ordinance shall be deemed to be introduced on the date the subject matter is first voted on by Town Council or Boards. M. ADOPTION OF ORDINANCES An affirmative vote equal to a majority of all members of the Town Council not excused from voting on the question shall be required to adopt an ordinance 24 or to take any action that has the effect of an ordinance, or to make, ratify, or authorize any contract on behalf of the Town. No ordinance shall be adopted unless it has been reduced to writing before a vote on adoption is taken. N. ADOPTION OF THE BUDGET ORDINANCE Notwithstanding the provisions of any Town Charter, general law, or local act: 1. Any action with respect to the adoption or amendment of the budget ordinance may be taken at any regular or special meetings of Town Council by a simple majority of those present and voting, a quorum being present; 2. No action taken with respect to the adoption or amendment of the budget ordinance need be published or is subject to any other procedural requirement governing the adoption of ordinances or resolutions by Town Council; 3. The adoption and amendment of the budget ordinance and the levy of taxes in the budget ordinance are not subject to the provisions of any town charter or local act concerning initiative or referendum. During the period beginning with the submission of the budget to Town Council and ending with the adoption of the budget ordinance, the Town Council may hold any special meetings that may be necessary to complete its work on the budget ordinance. Except for the notice requirements of the Open Meetings Law, which continue to apply, no provision of law concerning the call of special meetings applies during that period SO long as (a) each Member of Town Council has actual notice of each Special Meeting called for the purpose of considering the budget, and (b) no business other than consideration of the budget is taken. This rule does not allow and may not be construed to allow the holding of closed meetings or executive session by the Town Council if it is otherwise prohibited by law from holding such a meeting or session. O. CLOSED SESSIONS The Town Council or Boards may hold closed sessions as provided by law (See NCGS $143-318.11). Town Council or Boards shall only commence a closed session after a motion to go into closed session has been made and adopted during an open meeting. The motion shall state the general purpose of the 25 closed session and must be approved by the vote of the majority of those present and voting. Town Council shall terminate the closed session by a majority vote. Only those actions specifically authorized by statute may be taken in closed session. A motion to adjourn or to recess to a time and date certain shall not be in order during a closed session. This does not preclude a brief recess. P. SPECIAL, EMERGENCY, & ADJOURNED MEETINGS 1. Special Meetings. The Mayor, the Mayor Pro-tempore, or any two members of the Town Council may at any time call a special Town Council meeting by signing a written notice stating the time and place of the meeting and the subject(s) to be considered. At least forty-eight (48) hours before a special meeting is called in this manner, written notice of the meeting stating its timeand place and the subjects to be considered shall be (a) delivered to the Mayor and each Town Council Member or left at his or her usual dwelling place; (b) posted on the Town's principal bulletin board; and (c) mailed or delivered to each newspaper, wire service, radio station, television station, and person who has filed a written request for notice with the Finance Officer/Town Clerk. Only those items of business specified in the notice may be transacted at a Special Meeting called in this manner unless all members are present or have signed a written waiver of notice. A Special Meeting may also be called or scheduled by vote of the Town Council in open session during another duly called meeting. The motion or resolution calling or scheduling the Special Meeting shall specify its time, place, and purpose. At least forty-eight (48) hours before a Special Meeting is called in this manner, notice of the time, place, and purpose of the meeting shall be (a) posted on the Town Council's principal bulletin board at town hall; and (b) mailed or delivered to each newspaper, wire service, radio station, television station, and person who has filed a written request for notice with the Finance Officer/Town Clerk. (Such notice shall be mailed or delivered at least forty- eight (48) hours before meeting to each Town Council Member and to the Mayor if he or she was not present at the meeting at which the Special Meeting was scheduled.) 2. Emergency Meetings. The Mayor, the Mayor Pro-tempore, or any two members of the Town Council may at any time call an Emergency Town Council Meeting by signing a written notice stating the time and place of 26 the meeting and the subjects to be considered. The notice shall be delivered to the Mayor and each Town Council Member or left at his or her usual dwelling place at least six (6) hours before the meeting. Notice of the meeting shall be given to each local newspaper, local wire service, local radio station, and local television station that has filed a written emergency meeting notice request, which includes the newspaper's, wire services, or station's telephone number, with the Finance Officer/Town Clerk. This notice shall be given by the same method used to notify the Mayor and Town Council Members and shall be given at the expense of the party notified. Emergency Meetings shall only be called because of general unexpected circumstances that require immediate consideration by the Town Council. Only business connected with the emergency may be considered at an emergency meeting. 3. Adjourned (or recessed) Meetings. A properly called regular, special, or emergency meeting may be adjourned (or recessed) by a procedural motion made and adopted as provided in Rule 17(a) in open session during the regular, special, or emergency meeting. The motion shall state the time and place when the meeting will reconvene. No further notice need be given of anadjourned (or recessed) session of a properly called regular, special, oremergency meeting. VIRTUAL MEETINGS AND ATTENDANCE Virtual meetings shall apply to any meeting held remotely. Virtual attendance shall apply to both telephonic and video attendance by a Town Council or Board member. Virtual meetings shall be reserved for declared state of emergencies and shall be conducted pursuant to NCGS $166A-19.24. All Town Council and Board member shall make all efforts to attend meetings in person. If virtual attendance is necessary, the member requesting virtual attendance shall notify the Mayor or Chair, Town Administrator and Finance Officer/Town Clerk twenty- four (24) hours prior to the start of the meeting, unless advance notice is impracticable. Virtual attendance shall be preferable to the member not participating in the meeting. If a member is attending a meeting virtually, they shall be counted towards a quorum as if they were physically present in the Town Council chambers at all times they are in virtual attendance. At the beginning of any meeting where a member is in virtual attendance, the Mayor or Chair shall announce that the member is in virtual attendance. Voting by members in virtual attendance shall be made by roll call. In the event that a member who is in virtual attendance should lose connection, they will not be counted as having been present for any subsequent votes. 27 R. MEETING MINUTES Full and accurate minutes of the Town Council or Board Meetings shall be kept and shail be open to the inspection of the public, except as otherwise provided in this rule. The results of each vote shall be recorded in the minutes and the "aye's"and "no's upon any question shall be taken. Full and accurate minutes shall be kept of all actions taken during closed sessions. Minutes and other records of a closed session may be withheld from public inspection SO long as public inspection would frustrate the purpose of the closed session. S. VACANCIES A vacancy that occurs in an elective office of a town shall be filled by appointment of the Town Council. If the term of the office expires immediately following the next regular municipal election, or if the next regular municipal election will be held within 90 days after the vacancy occurs, the person appointed to fill the vacancy shall serve the remainder of the unexpired term. Otherwise, a successor shall be elected at the next regularly scheduled municipal election that is held more than 90 days after the vacancy occurs, and the person appointed to fili the vacancy shaii serve oniy untii the eiected successor takes office. The elected successor shall then serve the remainder of the unexpired term. If the number of vacancies on the Town Council is such that a quorum oft the Town Council cannot be obtained, the Mayor shall appoint enough members to make up a quorum, and the Town Council shall then proceed to fill the remaining vacancies. If the number of vacancies on the Town Council is suchthat a quorum of the Town Council cannot be obtained and the office of mayor is vacant, the Governor may fill the vacancies upon the request of any remaining member of the Town Council,or upon the petition of any five registered voters of the town. Vacancies in appointive office shall be filled by the same authority that makes the initial appointment. 28 LOUISBURG NORTH CAR OLIN A Charming Since 1779 MEMORANDUM To: Mayor Christopher Neal and Town Council From: Jon Barlow, Interim Town Administrator Subject: Administrator's Report Date: July 18, 2022 Your financials are attached. Electricities Board of Commissioners and Rate Committee As a member of the NCEPA, the Town automatically has a seat of the Eastern Agency Board ofCommissioners and Rate Committee. I have served on both of the Boards as the Town Manager in Selma. I will continue to fill this role until a permanent town administrator is appointed. StRAP Grant Last month, the Town received notice from the Soil and Water Conservation Commission that it was awarded a Streamflow Rehabilitation Assistance Program grant (StRAP) in amount of grant awarded is $257,769. According to our consulting engineers at Draper Associates, the length ofthe Tar River that could be cleared of debris could be increased to include all the area from the water intake to the wastewater discharge. A revised project scope was submitted to reflect these changes to the original grant. The Soil and Water Commission has not released our contract yet. Once we receive it then we will be able to solicit bids from contractors to perform the work. Highway 56 Booster Station Improvement Project The booster pump station project is complete. (919) 496-4145 * FAX (919) 496-6319 *. rantingomotoussupeon AB m LOUISBURG Charming Since 1779 July 14, 2022 Thomas J. Clancy, Chairman Louisburg ABC Board 605 N Bickett Blvd Louisburg, NC 27549 RE: June Financials Tom, Attached are the June 2022 Financials for the Louisburg ABC Store. Fori the month of June, total sales including MB sales totaled $168,717.73. Sales are down (-13.07) % compared to June 2021. Please note the store was closed several days due to COVID, Total cost of Sales amounted to $88,527.14 in June, leaving a gross profit of $80,191.44. Operating expenses, including depreciation, law enforcement and alcohol education totaled $62,204.68. Distribution to the Town for the month of June totaled $17,153.42. Please let me know if you have questions. Sean Br Town of Louisburg 13P.4 Nasb Street, Louisburg, N.C. 27549 Tel: (919) 496-3406 Fax: (919) 496-6319 9 0 d0 f 9 & f d0 & 0 0 & 8 & d& 0 0 0 & & 0 & & d& f f 0 3 9 & & 6 8 6 % & 0 & & f & f 0 0 & 8 0 % & & d0 00 00 0 d0 & f & 0 d& d& f & 8 0 & 0 & a d& f & & & 0 0 & d& & & & & 0 & f & e 2 e & & & 0 f & & & f 0 & 9 f 0 & & 0 & & 0 & 0 f & f f & & & 0 f - 0 % & df & 0 0 0 8 d& d0 0 & f & & 0 0 & & 0 & f f 0 f % f & 6 9 9 d0 & f % 0 6 0 6 9 f d d& & & 0 & f 0 00 % & & 00 0 0 & & d0 0 % 8 6 & & 0 0 9 8 d& & f 8 f & & 6 % f & 8 0 & & 0 9 & d& & & & & 9 0 00 9 9 % & f & & f & & 0 & & & 0 00 00 % f & & & 0 & 00 00 0 & & & & & 0 8 & & f 0 0 & 0 0 & & & f f & f 0 0 & & & 0 - a 8 6 & % f & & & & d& 0 & & & & & & 0 6 0 & & 0 % & & d& 0 0 & & - o 5 5 9 & & & & & f & f & 0 & 0 0 0 00 f 8 f & d0 a 0 & f 00 d& & & 0 f & f 0 f 0 & % & & 0 0 LOUISBURG ABC BOARD BALANCE SHEET June 30, 2022 ASSETS CURRENT ASSETS Cash In Bank $ 138,561.18 Certificate of Deposit 46,016.69 Change Fund 2,000.00 Investment Account 100,265.86 Petty Cash 25.00 Inventory 289,361.93 Prepaid Insurance 4,816.63 Prepaid Maintenance 2,541.70 TOTAL CURRENT ASSETS 583,588.99 NON-CURRENT ASSETS Land 3,791.82 Buildings 69,760.70 Paving 24,924.94 Furniture And Fixtures 19,330.07 Store Equipment 85,717.93 Accumulated Depreciation (174,405.98) TOTAL NON-CURRENT ASSETS 29,119.48 TOTAL ASSETS $ 612,708.47 Deferred Outflows of Resources 30,882.00 TOTAL ASSETS AND DEFERRED $ 643,590.47 OUTFLOWS Substantially all disclosures required by accounting principles generally accepted in the United States of America are omitted and no assurance is provided. LOUISBURG ABC BOARD BALANCE SHEET June 30, 2022 LIABILITIES Accounts Payable $ 154,872.66 Net Pension Liability 26,217.00 Sales Tax Payable 11,155.19 Beverage Tax Payable 37,967.00 Rehab Tax Due County 474.21 6 2/3% Mixed Bev Tax Payable 90.66 Retirement Payable 2,031.55 FICA 1,813.82 Medicare 421.50 Federal Withholding 1,150.00 State Withholding 604.00 Reserved For Law Enforcement 8,265.77 Reserved For Alcohol Rehab 3,857.36 Surplus Due Town 57,237.31 TOTAL LIABILITIES $ 306,158.03 RETAINED EARNINGS Retained Earnings 327,432.44 Current Earnings 10,000.00 TOTAL RETAINED EARNINGS 337,432.44 TOTAL LIABILITIES AND RETAINED $ 643,590.47 EARNINGS Substantially all disclosures required by accounting principles generally accepted in the United States of America are omitted and no assurance is provided. LOUISBURG ABC BOARD STATEMENT OF INCOME AND RETAINED EARNINGS For the One Month and Year Ended June 30, 2022 Current Period Year To Date Amount Percent Amount Percent INCOME Liquor Sales $ 159,359.80 94.45 $ 2,383,227.6 95.08 0 Mixed Beverage Sales 9,357.93 5.55 123,331.65 4.92 Interest Income 0.85 0.00 13.55 0.00 TOTAL INCOME 168,718.58 100.00 2,506,572.8 100.00 COST OF SALES Purchases 84,038.24 49.81 1,281,086.8 51.11 8 Bailment 3,165.25 1.88 27,245.75 1.09 Surchage 1,323.65 0.78 13,969.05 0.56 TOTAL COST OF SALES 88,527.14 52.47 1,322,301.6 52.75 8 GROSS PROFIT 80,191.44 47.53 1,184,271.1 47.25 2 OPERATING EXPENSES Salaries 14,627.10 8.67 200,033.33 7.98 Professional Services 0.00 0.00 5,549.00 0.22 Payroll Tax (5,578.35) (3.31) 15,277.62 0.61 Retirement 1,915.46 1.14 25,424.38 1.01 Law Enforcement 2,536.35 1.50 27,784.32 1.11 Alcohol Education 1,183.63 0.70 12,966.03 0.52 Computer Updates 0.00 0.00 520.95 0.02 Postage 119.75 0.07 618.66 0.02 Meetings 39.70 0.02 939.70 0.04 Telephone/nternet 266.71 0.16 3,179.30 0.13 N.C. Beverage Tax 37,049.42 21.96 552,057.63 22.02 Utilities 224.37 0.13 3,827.16 0.15 .05 Rehab Tax 474.21 0.28 7,890.00 0.31 M/B Tax - NCDR 907.00 0.54 9,356.93 0.37 Substantially all disclosures required by accounting principles generally accepted in the United States of America are omitted and no assurance is provided. LOUISBURG ABC BOARD STATEMENT OF INCOME AND RETAINED EARNINGS For the One Month and Year Ended June 30, 2022 Current Period Year To Date Amount Percent Amount Percent Bank Charges $ 2,664.89 1.58 $ 32,324.61 1.29 6 2/3% Mixed Bev Tax 90.66 0.05 2,261.06 0.09 Security 0.00 0.00 1,042.79 0.04 Store Supplies 1,562.26 0.93 12,952.05 0.52 Maintenance 358.21 0.21 5,605.13 0.22 Insurance - General 411.33 0.24 4,976.71 0.20 Group Insurance 2,707.26 1.60 32,988.04 1.32 Travel/Convention 125.00 0.07 4,369.45 0.17 Depreciation 519.72 0.31 6,236.64 0.25 TOTAL OPERATING EXPENSES 62,204.68 36.87 968,181.49 38.63 INCOME BEFORE DISTRIBUTION 17,986.76 10.66 216,089.63 8.62 Distribution To Town 17,153.42 10.17 206,089.63 8.22 INCOME AFTER DISTRIBUTIONS $ 833.34 0.49 $ 10,000.00 0.40 Substantially all disclosures required by accounting principles generally accepted in the United States of America are omitted and no assurance is provided. TypeofCalls January February March April May June July Aug Sept Oct Nov Dec Total Calls la7 Town Total Calls 22 15 29 32 27 25 150 Structure Fires/ Cooking! Fires 0 0 1 0 0 0 1 Motor Vehicle Crashes 6 4 3 7 12 39 Fire Alarms 5 3 13 11 43 Elec/Smokes Scare 2 2 8 Service Medical/ Goodi Intent 5 4 34 Cancelled Enroute 0 1 Brush Fires 0 1 Other Fires (car fire, gas! leaks) 2 0 Weather Related! (downedt treese etc) 0 0 5 Outside of Town Total Calls 21 13 18 13 15 32 112 Structure Fires/ /Cooking Fires 1 1 8 Motor Vehicle Crashes 3 3 29 FireA Alarms 3 15 Elec/S Smoke Scare 3 Service / Medical/ /G Good Intent 5 2 16 Cancelled Enroute 1 6 Brush Fires 3 5 18 Other Flres (car fire, gasl leaks) 1 0 1 6 Weather Related (downedt trees etc) 3 0 0 0 3 11 Total Calls 43 28 47 45 42 57 0 0 262 Structurel Fires 9 Motor Vehicle Crashes 68 Fire Alarms 58 Elec/S Smoke Scare 11 Service / Medical/ / Good Intent 50 Cancelled Enroute 10 Brush Fires 25 Other Fires( car fire, gas leaks) 15 Weather Related Calls 16 Jan Feb March April May June July Aug Sept Oct Nov Dec Total Smoke Alarms Installed 6 3 1 6 2 11 29 Chlld Safety Seat Installations 1 2 2 15 Emergency Call Outs (Elec/Publlc) Works) 1 1 8 14 Activity Log Event Summary (Cumulative Totals) Louisburg Police Department (06/01/2022 - 06/30/2022) 911 Hang-ups 13 Accident 25 Alarm Activation 26 Animal Complaint 6 Arrest 11 Arrest (WS) 5 Assault 1 Assist Motorist 10 Assist Other Department 4 B&E 3 Begging 1 Business Check 3 C&R Driver 6 Clear Area 1 Communicating Threats 1 County Assist 3 Customer Problems 3 Damage to Property 5 Dispute 12 Disturbance 7 Domestic 10 Drugs 1 Embezzlement 1 Escort 3 Escort (Funeral) 4 Escort (Security) 30 Fight 3 Fire Alarm 1 Found Property 1 Fraud 2 Harassment 1 Illegal Parking 2 Information/Assistance 5 Intoxicated Subject 2 Investigate 2 Juvenile Problems 2 Larceny 10 Lost Property 2 Mental Patient 4 Recovered Stolen Property 1 Rescue 6 Runaway 1 Serve papers 11 Shots Fired 2 Suicide Threat 2 Suspicious Vehicle/Subject 16 Traffic Control 1 Trespassing 2 TWO: Talk With Officer 39 Unauthorized Use of Motor Vehicle 1 Unlock car 22 Vandalism 1 Wasted OCA Number 1 Welfare Check 9 Total Number Of Events: 347 Date: 07/01/2022 Tlme: 15:55 Page 1