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MACON COUNTY BOARD OF COMMISSIONERS JANUARY 21, 2014 AGENDA 5:00 p.m.

Presentation of county service awards per Attachment #1 followed immediately by reception for service award recipients 1. Call to order and welcome at 6 p.m. by Chairman Corbin 2. Announcements 3. Moment of Silence 4. Pledge of Allegiance 5. Public Hearing(s) NONE 6. Public Comment Period 7. Adjustments to and approval of the agenda 8. Reports/Presentations A. Presentation of the Fiscal Year 2012-13 audit report Erica Brown with Martin, Starnes & Associates, CPAs B. Presentation regarding changes to election law Macon County Board of Elections members and Kim Bishop, Elections Director C. Presentation regarding Stand Down event for veterans Veterans Service Officer Daylon Plemens and Assistant Service Officer Leigh Tabor 9. Old Business A. Update on Parker Meadows Recreational Park Seth Adams, Recreation Director and Matt Mason, County Planner 10.New Business A. Consideration of Change Order Number 15 (Final) on Little Tennessee River/Cartoogechaye Creek Trunk Sewer Project Mike Waresak, McGill Associates

B. Consideration of Change Order Number 1 (Final) on Little Tennessee River/Cartoogechaye Creek Reuse Distribution System Mike Waresak, McGill Associates C. Consideration of lease renewal with Drawbridge Secure Network Solutions, LLC Tommy Jenkins, Economic Development Director D. Consideration of Macon County Public Health Fee Schedule Jim Bruckner, Health Director E. Discussion regarding playground at Iotla Valley Elementary School Principal Gary Brown F. Request for vehicle Joe Hilliard, Macon County Historical Society G. Consideration of fire contract with the Town of Franklin County Attorney and Fire Marshall Jimmy Teem H. Consideration of fire contract with the Town of Highlands County Attorney and Fire Marshall Jimmy Teem I. Consideration of fire contracts with volunteer fire departments County Attorney and Fire Marshall Jimmy Teem 1. Burningtown-Iotla Volunteer Fire & Rescue, Inc. 2. Clarks Chapel Fire and Rescue Department, Inc. 3. Cowee Volunteer Fire/Rescue. Inc. 4. Cullasaja Gorge Fire and Rescue, Inc. 5. Mountain Valley Volunteer Fire & Rescue, Inc. 6. Nantahala Volunteer Fire and Rescue, Inc. 7. Otto Volunteer Fire and Rescue, Inc. 8. Sky Valley-Scaly Mountain Volunteer Fire and Rescue Incorporated 9. West Macon Fire and Rescue, Inc. J. Consideration of topics for planning board discussion Commissioner Tate K. Consideration of waiver of inspection fees for proposed REACH facility Commissioner Haven 11.Consent Agenda Attachment #11
All items below are considered routine and will be enacted by one motion. No separate discussion will be held except on request of a member of the Board of Commissioners.

A. B. C. D.

Minutes of the December 10, 2013 regular meeting Budget Amendments -- #68-#75 and #79 Tax Releases Monthly ad valorem tax collection report

12.Appointments A. Town of Franklin appointment to the Economic Development Commission

B. Franklin Area Chamber of Commerce appointment to the Economic Development Commission C. Economic Development Commission (one seat) D. Expansion of Recreation Commission membership 13.Closed session A. Attorney-client privilege -- NCGS 143-318.11(a)(3) B. Personnel NCGS 143-381.11(a)(6) 14. Recess until Saturday, January 25, 2014 at 9 a.m. at the Cecil L. Groves Center on the Macon County campus of Southwestern Community College, 44 Siler Farm Road, Franklin, NC 28734

2013ServiceAwards 10years 15years 20years 25years 30years 35years AndyGibson JoeyGibson RogerGuest ChrisMurray ScottNelson ReggiePerry ShereePoling PollyBradley BobbyGibson MyraHigdon TonyaHodgins DebbieHunter AmyJennings DougJohnson PatriciaLopes KaineMatthews AndyMuncey JonathanPhillips JulieRogers GarySolesbee AmyStewart ChristinaWiggins GaryWishon KarenWisman BobbyBishop SheilaCorbin AngelaKinsland PamPerry CharlesWomack TerryBates PatDeal PamLedford MaryJoArrant StanleyPolanski

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Finance SUBJECT MATTER: Report Presentation of the Fiscal Year 2012-13 Audit

DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Erica Brown with Martin, Starnes & Associates, CPAs, will be here to present a PowerPoint presentation regarding the key points of the firms audit report for the fiscal year ending June 30, 2013. Per the Finance Director, copies of the report and the compliance letters are available to the board members prior to meeting and can be picked up at her office. Otherwise, she will distribute copies at the meeting on Tuesday evening.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 8A

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Board of Elections SUBJECT MATTER: Changes to election law DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Elections Director Kim Bishop has requested time on the agenda for members of the Board of Elections to inform the commissioners about changes in election laws that will take effect this month. Per Ms. Bishop, pursuant to House Bill 589, county boards of elections are required to make several changes which will affect a number of items, including modifications to forms and adding additional one-stop voting sites. COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 8B

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Veterans Services SUBJECT MATTER: Stand Down event DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Please see the attached document entitled What Is A Stand Down? for more details. Veterans Service Officer Daylon Plemens and Assistant Service Officer Leigh Tabor will be at the meeting to provide further information, as Macon County has been chosen to host a Stand Down for eligible veterans in August of this year.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ___X__ Agenda Item 8C

Yes

___

No

WHAT IS A STAND DOWN? "In times of war, exhausted combat units requiring time to rest and recover were removed from the battlefields to a place of relative security and safety. Today, Stand Down refers to a community-based intervention program designed to help the nation's estimated 200,000 homeless veterans "combat" life on the streets." - (Definition courtesy of Veterans Village of San Diego) The nation's first Stand Down was started by Veterans Village of San Diego in 1988 in order to assist the homeless veterans of that region, many of whom were veterans of the Vietnam War. Since that first event over 22 years ago, the Stand Down concept has been duplicated across the country with approximately 200 Stand Down events held nationwide each year serving over 42,000* of the nation's homeless and at-risk veterans according to the National Coalition of Homeless Veterans. The Macon County Stand Down will be a 1-day event, set up like a military base camp in which homeless and at-risk veterans as well as their families will be able to come in off the streets and receive basic social services from a variety of community and government agencies. These services include (but not limited to):

Medical, Dental and Vision Exams and Care Mental Health and Substance Abuse Counseling Veterans & Social Security Benefits Identification and Assistance Employment and Housing Assistance Legal Assistance Haircuts, hot showers along with breakfast and a hot lunch Podiatrist/Chiropractor

The Stand Down will be for Veterans who are either homeless or low income and any Veteran who is need of any of the above services. This event will be for the counties West of Asheville, to include: Macon, Jackson, Swain, Graham, Cherokee, Haywood and Clay. The location is the Macon County Community Facilities building whose grounds also proudly display our beautiful Veterans Memorial. This is a wonderful opportunity for Macon County to show our support for our Veterans and for local businesses to give back.

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Recreation SUBJECT MATTER: Update on Parker Meadows Recreational Park DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Recreation Director Seth Adams and County Planner Matt Mason will provide the board with an update on the proposed park following the recent announcement of the county receiving a $500,000 grant from the Parks and Recreation Trust Fund (PARTF) to assist in developing the facility. COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 9A

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Governing Board SUBJECT MATTER: Change Order #15 on Little Tennessee River/Cartoogechaye Creek Trunk Sewer Project DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Please see the attached change order and supporting documentation for more details. Mike Waresak with McGill Associates will be at the meeting to answer questions and to provide additional information. The net effect of the change order is a decrease of $77,781.69 and constitutes the final change order on the project. Per e-mail communication from Mr. Waresak, representatives of Garys Grading are in agreement with this change order and signed copies are being forwarded to Mr. Waresak. Approval of the change order will allow for the final application for payment to be processed, bringing the county closer to closing out this project.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ___X__ Agenda Item 10A

Yes

___

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Governing Board SUBJECT MATTER: Change Order Number 1 on Little Tennessee River/Cartoogechaye Creek Reuse Distribution System DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Please see the attached change order and supporting documentation for more details. Mike Waresak with McGill Associates will be at the meeting to answer questions and to provide additional information. The net effect of the change order is a decrease of $11,797.50 along with a net increase of 15 days of contract time. This also constitutes the final change order on this project. Per Mr. Waresak, this contract with Watson Contracting of Franklin included items that were in the initial Garys Grading contract that could be performed more cost effectively by a local contractor.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ___X__ Agenda Item 10B

Yes

___

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Economic Development SUBJECT MATTER: Network Solutions, LLC Renewal of lease with Drawbridge Secure

DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Economic Development Director Tommy Jenkins will be at the meeting to provide additional details. The board voted in January last year to approve the initial lease with Drawbridge for use of Unit D at the Business Development Center at a cost of $150 per month. The County Attorney will provide an updated resolution and one-year lease for the boards consideration at the meeting on Tuesday.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 10C

Yes

__X

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Public Health SUBJECT MATTER: Fee Schedule DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Please see the attached Macon County Public Health Fee Schedule as it applies to laboratory services provided by LabCorp, with fee decreases noted in black and increases in red. Public Health Center Director Jim Bruckner will be at the meeting to provide additional details. The Board of Health has given its approval of the changes for lab services, as well as the two additions noted below: 90738 LU401 Japanese Encephalitis Vaccine MI Paste $248.00 $12.00

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ___X__ Agenda Item 10D

Yes

___

No

Macon County Public Health Fee Schedule (LabCorp)


LabCorp Test Number
Proposed changes

Code

Description

MCPH Current Fee

Fee Decrease Fee Increase

LABORATORY 80050 317637 80051 303754 80055 202945 80061 23010 80069 322777 80074 322744 80152 7476 80156 7419 80157 70748 80158 706556 80162 7385 80164 7260 80178 7708 80182 7393 80184 7823 80185 7401 80188 7856 80195 716712 80197 700248 80198 7336 81220 480533 82024 4440 82040 1081 82043 140284 82055 17996 82085 2030 82088 4374 82103 1982 82104 95653 82105 2253 82131 82140 7054 82150 1396 82157 4705 82164 10116 82175 7245 82232 480020 82239 10330 82247 1099 82248 1222 82274 182949 82306 81950 82310 1016 82330 4804 82340 3269 82374 1578 82375 7187 82378 2139 82380 1529

GENERAL HEALTH PANEL ELECTROLYTE PANEL PRENATAL - OBSTETRIC PANEL LIPID PANEL RENAL FUNCTION PANEL HEPATITIS PANEL- ACUTE (A,B,C) AMITRIPTYLINE CARBAMAZEPINE, TOTAL- TEGRETOL TEGRETOL, FREE CYCLOSPORINE - BLOOD DIGOXIN VALPROIC ACID (DIPROPYLACETIC ACID) LITHIUM NORTRIPTYLINE PHENOBARBITAL DILANTIN - PHENYTOIN, TOTAL PRIMIDONE- MYSOLINE (W/PHENOB) SIROLIMUS(RAPAMUNE) BLOOD TACROLIMUS THEOPHYLLINE Cystic Fibrosis DNA - Carrier ACTH ALBUMIN MICROALBUMIN / CREAT RATION - RANDOM UA ALCOHOL - BLOOD (ETHANOL) ALDOLASE ALDOSTERONE ALPHA-1-ANTITRYPSIN, TOTAL" ALPHA-1-ANTITRYPSIN, PHENOTYPE ALPHA-FETOPROTEIN, SERUM" AMINO ACIDS, SINGLE QUANT" AMMONIA AMYLASE ANDROSTENEDIONE ANGIOTENSIN I ENZYME TEST ARSENIC BETA-2 MICROGLOBULIN SERUM BILE ACIDS, TOTAL BILIRUBIN, TOTAL" BILIRUBIN, DIRECT" FECAL OCCULT BLOOD,IMMUNOASSAY VITAMIN D CALCIUM CALCIUM- ionized CALCIUM IN URINE CARBON DIOXIDE-BLOOD CARBON MONOXIDE-BLOOD CEA-CARCINOEMBRYONIC ANTIGEN CAROTENE, BETA

41.00 38.00 25.00 29.00 109.00 57.00 44.00 30.00 28.00 29.00 56.00 46.00 168.00 43.00 27.00 32.00 155.00 70.00 161.00 43.00 26.00 31.00 27.00 30.00 27.00 31.00 150.00 40.00 71.00 39.00 27.00 32.00 200.00 41.00 174.00 49.00 187.00 82.00 69.00 38.00 (new) 142.00 192.00 50.00 36.00 29.00 35.00 34.00 109.00 40.00 80.00 28.00 161.00 45.00 63.00 32.00 132.00 45.00 45.00 32.00 59.00 45.00 77.00 38.00 25.00 30.00 183.00 46.00 102.00 31.00 147.00 60.00 125.00 41.00 32.50 37.00 36.00 29.00 36.00 29.00 45.00 50.00 54.00 40.00 36.00 29.00 35.00 30.00 37.00 31.00 36.00 29.00 109.00 38.00 43.00 33.00 108.00 37.00

Macon County Public Health Fee Schedule (LabCorp)


82384 82390 Code 82435 82465 82542 82507 82523 82530 82533 82552 82553 82570 82575 82595 82607 82627 82668 82670 82672 82677 82705 82710 82731 82746 82784 82785 82941 82955 82977 83001 83002 83010 83090 83498 83516 83520 83525 83527 83615 83655 83690 83695 83701 83704 83825 83835 83874 83874 83880 83883 83891 84152 1560 LabCorp Test Number 1206 1065 716944 16865 4432 4051 2154 120816 3012 3004 1594 1503 4697 140277 4515 4549 4614 1677 1354 120857 2014 2170 4390 1917 1958 4309 4283 1628 706994 70085 4333 1115 7625 1404 120188 85324 4234 10405 3079 140889
THREE CATECHOLAMINES CERULOPLASMIN Description CHLORIDE-BLOOD CHOLESTEROL-BLD/SERUM CHROMOTOGRAPHY, QUANT, SING" LAMOTRIGINE (LAMICTAL) SERUM CITRATE - urine 24 hour COLLAGEN CROSSLINKS CORTISOL, FREE - URINE 24 HOUR CORTISOL- TOTAL CPK ISOENZYMES CPK, MB FRACTION" CREATININE- URINE 24 HOUR/RANDOM CREATININE CLEARANCE TEST CRYOGLOBULIN- semiquant, REFLEX VITAMIN B-12 DEHYDROEPIANDROSTERONE- DHEAS ERYTHROPOIETIN ESTRADIOL ESTROGEN ESTRIOL FATS/LIPIDS, FECES, QUAL" FECAL FATS, QUANTITATIVE FETAL FIBRONECTIN FOLIC ACID SERUM GAMMAGLOBULIN IgA, IgD, IgG, IgM, each GAMMAGLOBULIN IgE GASTRIN, SERUM G6PD ENZYME- QUANT GGT FSH- GONADOTROPIN (FSH) LH - GONADOTROPIN (LH) HAPTOGLOBIN, QUANT" HOMOCYSTINE HYDROXY-PROGESTERONE, 17-d alpha IMMUNOASSAY NONANTIBODY IMMUNOASSAY RIA INSULIN INSULIN-FREE LACTATE (LD) (LDH) ENZYME LEAD (adult) LIPASE LIPOPROTEIN(A) ELECTROPHORETIC SEP & QUANT WITH HR REFRA LIPOPROTEIN PARTICLES-QUANTITATION MERCURY METANEPHRINES- TOTAL - 24 HOUR URINE MYOGLOBIN- SERUM QUANT MYOGLOBIN- URINE QUANT BNP- T-TYPE NATRIURETIC PEPTIDE NEPHELOMETRY NOT SPEC MOLECULE ISOLATE NUCLEIC

172.00 53.00
MCPH Current Fee

54.00 32.00
Proposed changes

Fee Decrease Fee Increase

37.00 25.00 154.00 154.00 188.00 255.00 106.00 100.00 94.00 158.00 41.00 39.00 50.00 31.00 48.00 132.00 104.00 48.00 125.00 101.00 146.00 188.00 29.00 65.00 68.00 99.00 107.00 25.00 36.00 31.00 69.00 59.00 148.00 119.00 181.00 37.00 55.00 37.00 38.00 42.00 120.00 42.00 124.00 137.00 200.00 130.00 130.00 204.00 133.00 55.00

29.00 29.00 125.00 58.00 45.00 125.00 37.00 31.00 34.00 114.00 30.00 31.00 29.00 30.00 37.00 32.00 47.00 45.00 41.00 34.00 41.00 192.00 30.00 30.00 32.00 35.00 35.00 29.00 32.00 35.00 34.00 57.00 45.00 100.00 100.00 30.00 33.00 29.00 29.00 30.00 36.00 45.00 75.00 54.00 49.00 35.00 39.00 68.00 40.00 35.00 2

Macon County Public Health Fee Schedule (LabCorp)


83894 83898 83900 83912 LabCorp Test Number 2071 3442 3970 15610 4747 1107 1024 3251 1180 3186 16931 4317 4465 1073 3277 225920 4655 2006 1198 3178 10363 144980 4226 121186 140749 81000 1123 1545 4937 1172 1156 2188 10389 2212 120832 1040 3514 3418 4143 17509 70097 121200 1800 10108
MOLECULE GEL ELECTROPHOR MOLECULE NUCLEIC AMPLI, EACH" MOLECULE NUCLEIC AMPLI 2 SEQ GENETIC EXAMINATION

32.00 32.00 15.00 41.00


MCPH Current Fee

26.00 26.00 30.00 26.00


Proposed changes

Code

Description

Fee Decrease Fee Increase

83921 83930 83935 83945 83970 84066 84075 84100 84105 84132 84133 84134 84144 84146 84154 84155 84156 84165 84166 84207 84244 84295 84300 84305 84402 84403 84425 84445 84446 84450 84460 84466 84478 84479 84480 84481 84482 84484 84520 84540 84560 84585 84590 84591 84597 84630 84681

ORGANIC ACID, SINGLE, QUANT" OSMOLALITY- BLOOD OSMOLALITY- URINE OXALATE -24 HR URINE PTH- PARATHYROID HORMONE-INTACT PROSTATE ACID PHOSPHATASE ALKALINE PHOSPHATASE PHOSPHORUS- INORGANIC -SERUM PHOSPHORUS- INORGANIC - URINE POTASSIUM- SERUM POTASSIUM- URINE PREALBUMIN PROGESTERONE PROLACTIN PSA, FREE PROTEIN - TOTAL/REFLECT SERUM PROTEIN, URINE RANDOM or 24 hour PROTEIN ELEC-PHORESIS, SERUM QUANT PROTEIN ELEC-PHORESIS/URINE/CSF VIT B6 - PLASMA RENIN SODIUM- SERUM SODIUM- URINE 24 HOUR IGF-1 SOMATOMEDIN TESTOSTERONE- FREE TESTOSTERONE- TOTAL VITAMIN B-1 THIAMINE TSI-THYROID STIMULATING IMMUNG VIT E - SERUM AST (SGOT) TRANSFERASE ALT (SGPT) ALANINE AMINO TRANSFERRIN TRIGLYCERIDES T3 or T4 UPTAKE or THBR T3- TRIIODOTHYRONINE (T3) T3-FREE ASSAY (FT-3) T3- REVERSE TROPONIN, QUANT" BUN -UREA NITROGEN UREA NITROGEN -24 HR URINE URIC ACID- URINE VMA- URINE 24 HOUR VITAMIN A Vitamin B7 - Biotin VIT K - 1 ZINC C-PEPTIDE

222.00 52.00 52.00 94.00 100.00 28.00 36.00 37.00 37.00 25.00 37.00 67.00 85.00 49.00 116.00 36.00 60.00 51.00 100.00 179.00 135.00 36.00 37.00 71.00 186.00 37.00 119.00 253.00 103.00 25.00 25.00 59.00 25.00 23.00 75.00 112.00 217.00 153.00 25.00 38.00 37.00 96.00 112.00 227.00 204.00 94.00 115.00

125.00 31.00 31.00 36.00 31.00 32.00 29.00 29.00 29.00 29.00 31.00 33.00 35.00 33.00 33.00 29.00 29.00 35.00 34.00 49.00 40.00 29.00 29.00 40.00 52.00 32.00 42.00 77.00 37.00 29.00 29.00 33.00 29.00 28.00 32.00 34.00 49.00 110.00 29.00 32.00 29.00 37.00 40.00 125.00 200.00 30.00 32.00

Macon County Public Health Fee Schedule (LabCorp)


84702 84703 85004 85041 Code 85048 85049 85060 85220 85240 85250 85300 85301 85302 85303 85305 85306 85307 85379 85384 85610 85613 85651 85670 85705 85730 85732 86038 86060 86140 86141 86147 86160 86162 86200 86215 86225 86226 86235 86255 86256 86300 86301 86304 86308 86334 86335 86340 86359 86360 86376 86382 4416 4556 5033 LabCorp Test Number 5025 5249 86249 86264 86298 15040 15057 80465 117705 164525 164525 117762 115188 1610 5199 117887 5215 15230 5207 164855 6031 6627 120766 1941 164914 96289 96339 161422 6338 140293 2261 2303 6189 10413 505271 6676
HCG- QUANT SERUM HCG-QUAL SERUM WBC DIFFERENTIAL -AUTOMATED RBC COUNT AUTOMATED

40.00 24.00 17.00 34.00


MCPH Current Fee

34.00 32.00 27.00 31.00


Proposed changes

Description

Fee Decrease Fee Increase

WBC-COUNT - BLOOD (LEUKOCYTE ) AUTO PLATELET COUNT AUTOMATED BLOOD SMEAR INTERPRETATION FACTOR V ACTIVITY FACTOR VIII ACTIVITY FACTOR IX ACTIVITY ANTITHROMBIN III TEST ANTITHROMBIN III ANTIGEN TEST PROTEIN C ANTIGEN PROTEIN C ACTIVITY PROTEIN S, TOTAL functional PROTEIN S FREE ACTIVATED PROTEIN C (ACP) RESISTANCE D- DIMER FIBRIN DEGRADATION, QUANT" FIBRINOGEN PT / INR PROTHROMBIN TIME RUSSELL VIPER VENOM, DILUTED" SED RATE, NONAUTOMATED" THROMBIN TIME PLASMA THROMBOPLASTIN INHIBITION PTT- THROMBOPLASTIN TIME, PARTIAL" THROMBOPLASTIN TIME, SUBSTITUTION EA ANA- ANTINUCLEAR ANTIBODIES-DIRECT ANTISTREPTOLYSIN O, TITER" C-REACTIVE PROTEIN C-REACTIVE PROTEIN, HS - CARDIAC CARDIOLIPIN ANTIBOD, each class COMPLEMENT, ANTIGEN" COMPLEMENT, TOTAL (CH50)" CCP-CYCLIC CITRULPEPTIDE AB DNASE (DEOXYRIBONUCLEASE) ANTIBODY DNA ANTIBODY- NATIVE OR DOUBLE STRAND DNA ANTIBODY, SINGLE STRAND" NUCLEAR ANTIGEN ANTIBODY-EXTRACTABLE FLUORESCENT ANTIBODY, SCREEN" FLUORESCENT ANTIBODY, TITER" CA 27.29 -IMMUNOASSAY TUMOR, CA 19-9- MMUNOASSAY TUMOR, CA 125- MUNOASSAY TUMOR, MONO- HETEROPHILE ANTIBODIES- QUALITATIVE IMMUNOFIX E-PHORESIS, SERUM" IMMUNFIX E-PHORSIS/URINE/CSF INTRINSIC FACTOR ANTIBODY T CELLS; TOTAL COUNT CD4 / CD8, ABSOLUTE COUNT/RATIO" THYRO PEROXIDASE-TPO-MICROSOMAL ANTIBODY NEUTRALIZATION TEST, VIRAL"(rabies titer)

34.00 34.00 24.00 238.00 195.00 238.00 150.00 200.00 65.00 65.00 55.00 59.00 155.00 170.00 95.00 26.00 110.00 20.00 90.00 100.00 26.00 100.00 32.00 45.00 49.00 52.00 60.00 109.00 123.00 104.00 135.00 124.00 131.00 114.00 121.00 111.00 38.00 140.00 42.00 50.00 40.00 189.00 135.00 177.00 177.00 59.00 55.00

29.00 29.00 30.00 95.00 95.00 95.00 51.00 43.00 63.00 54.00 61.00 61.00 55.00 45.00 30.00 28.00 54.00 29.00 44.00 75.00 28.00 75.00 30.00 29.00 30.00 31.00 37.00 33.00 31.00 45.00 42.00 32.00 45.00 34.00 35.00 35.00 36.00 35.00 33.00 33.00 27.00 51.00 36.00 35.00 73.00 31.00 70.00

Macon County Public Health Fee Schedule (LabCorp)


86431 86592 86593 86611 86617 Code 86618 86632 86644 86645 86663 86664 86665 86677 86689 86694 86695 86696 86703 86704 86705 86706 86707 86708 86709 86735 86747 86757 86765 86777 86780 86787 86790 86800 86803 86804 86850 86870 86880 86900 87177 87186 87209 87230 87324 87338 87340 87350 87425 87490 87491 87517 6502 6072 6460 163162 163600 LabCorp Test Number 161992 96149 6494 96727 162289 164806 164895 163147 83824 6718 16881 6395 6635 6726 6734 96552 163303 16667 96560 6478 96206 6692 140659 6015 6213 6270 6049 8680 180448 86207 180764 6510 6619 6866 98012 188078 551620
RA -RHEUMATOID FACTOR, QUANT" RPR- BLOOD SEROLOGY, QUALITATIVE" RPR-TITER BLOOD SEROLOGY, QUANT BARTONELLA ANTIBODY CAT SCRATCH LYME DISEASE ANTIBODY-CONFIRMATORY WB Description

27.00 20.00 20.00 236.00 300.00


MCPH Current Fee

30.00 28.00 30.00 50.00 58.00


Proposed changes

Fee Decrease Fee Increase

LYME DISEASE IGM ANTIBODY CHLAMYDIA IGM ANTIBODY CMV ANTIBODY- IGG CMV ANTIBODY, IGM" EPSTEIN-BARR ANTIBODY-EA EARLY ANTIGEN EPSTEIN-BARR ANTIBODY-EBNA NUCLEAR AG EPSTEIN-BARR ANTIBODY-VIRAL CAPSID(VCA) HELICOBACTER PYLORI - IGG QUANT HTLV/HIV WB CONFIRMATORY HERPES SIMPLEX TEST- TYPE 1 & 2 IGM HERPES SIMPLEX TYPE 1 IGG HERPES SIMPLEX TYPE 2 HIV-1/HIV-2, SCREENING HEP B CORE ANTIBODY, TOTAL" HEP B CORE ANTIBODY, IGM" HEP B SURFACE ANTIBODY- QUALITAtive HEP BE ANTIBODY HEP A ANTIBODY, TOTAL" HEP A ANTIBODY, IGM" MUMPS TITER - IGG ANTIBODY PARVOVIRUS ANTIBODY-B19 IGG-IGM ROCKY MTN SPOTTED FEVER-IgM RUBEOLA ANTIBODY TITER IGG TOXOPLASMA GONDII IGG ANTIBODY TP-PA SYPHILIS CONFIRM TEST VARICELLA-ZOSTER ANTIBODY TITER VIRUS ANTIBODY NOS THYROGLOBULIN ANTIBODY HEPATITIS C AB TEST HEP C AB TEST, CONFIRM" ANTIBODY SCREEN- RBC ANTIBODY IDENTIFICATION- RBC COOMBS TEST, DIRECT" BLOOD TYPING, ABO" OVA AND PARASITES SMEARS-concentration SUSCEPTIBLE - MICROBE , MIC" SMEAR, COMPLEX STAIN- trichrome, iron etc C.DIFFICILE B TOXIN - (QUAL) CLOSTRIDIUM difficile toxin A and B, EIA HELICOBACTER PYLORI, STOOL ANITGEN, EIA HEPATITIS B SURFACE AG, EIA" HEPATITIS BE AG, EIA" ROTAVIRUS AG, EIA" CHLAMYDIA TRACH BY DNA PROBE CHLAMYDIA TRACH, DNA, LabCorp swab or ua HEPATITIS B, DNA, QUANT - PCR

133.00 45.00 125.00 40.00 112.00 31.00 112.00 33.00 108.00 30.00 108.00 30.00 108.00 30.00 51.00 39.00 103.00 70.00 100.00 39.00 94.00 41.00 127.00 44.00 33.00 32.00 28.00 32.00 67.00 31.00 28.00 29.00 81.00 33.00 29.00 31.00 29.00 31.00 36.00 32.00 207.00 66.00 141.00 48.00 38.00 33.00 94.00 34.00 67.00 67.00 51.00 34.00 143.00 143.00 105.00 34.00 38.00 31.00 406.00 155.00 28.00 30.00 107.00 42.00 56.00 36.00 25.00 30.00 25.00 30.00 23.00 39.00 50.00 30.00 140.00 40.00 127.00 40.00 204.00 63.00 27.00 29.00 83.00 32.00 137.00 38.00 32.00 33.00 129.00 43.00 541.00 262.00

Macon County Public Health Fee Schedule (LabCorp)


87521 87522 87590 87902 88141 550400 HEPATITIS C, RNA, AMP PROBE - QUAL 98004 550475
HEPATITIS C, RNA, QUANTISURE (IU) N.GONORRHOEAE, DNA, DIR PROB" HEPATITIS C GENOTYPE, DNA, " CYTOPATHOLOGY, CERVICAL OR VAGINAL Interpretation of abnormal results in connection with CPT code for Pap 88175 WBC - STOOL

368.00 115.00 406.00 115.00 84.00 33.00 582.00 228.00 (new) 69.00 20.00 33.00

89055

8656

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Macon County Schools SUBJECT MATTER: Playground at Iotla Valley Elementary DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Per the County Manager, Iotla Valley Elementary Principal Gary Brown has requested time on the agenda to discuss matters related to a playground at the school with the commission.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 10E

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Macon County Historical Society SUBJECT MATTER: Request for vehicle DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Per the County Manager, Joe Hilliard with the Macon County Historical Society would like to make a request regarding a used Transit vehicle. COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 10F

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Town of Franklin SUBJECT MATTER: Contract for Fire Protection DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Please see the attached document for more details. The County Attorney and Fire Marshall Jimmy Teem can provide additional information at the meeting. This contract has been approved by the Town of Franklin Board of Aldermen and is in the process of being executed by the mayor and town clerk. COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments __X__ Agenda Item 10G

Yes

___

No

STATE OF NORTH CAROLINA COUNTY OF MACON CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the _________ day of ______________, 2014. ___________________________ Macon County Finance Officer

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the _________ day of ______________, 2014. _________________________________ The Town of Franklin Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between THE TOWN OF FRANKLIN, a municipal corporation (hereinafter TOWN) and controlling authority of Franklin Fire & Rescue (hereinafter DEPARTMENT), and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the

territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 5883-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide or maintain for the DISTRICT, known as Franklin District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed;

NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT, known as Franklin District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. Purchase, leasing and maintenance of equipment and apparatus; Purchase, construction and repair of fire stations;

2.

3.

C. D. E. F.

Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget as a part of the TOWNs budgetary process, in accordance with applicable law. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the TOWN, the DEPARTMENT or by TOWN employees, in accordance with applicable law. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The TOWN shall maintain a written accounting system as required by applicable law, including but not limited to the Local Government Budget and Fiscal Control Act. Copies of the proposed DEPARTMENT budget for the ensuing fiscal year and the TOWNs most recent certified annual audit shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further

B.

C.

D.

E.

interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract. F. Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

5.

ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time during reasonable business hours by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal to that office, with a copy to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, email address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall become effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such

6.

7.

8.

9.

10.

breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District. 11. WORKERS COMPENSATION INSURANCE. The DEPARTMENT responsible for payment of workers compensation insurance premiums. will be

12.

OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the TOWN shall procure all

13.

14.

15.

16.

17.

18.

insurance coverages stated in paragraphs 1, 2, and 6 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured. 19. ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols, a current copy of which has been supplied to the DEPARTMENT with the execution of this Contract. The COUNTY agrees, upon any amendment to the said protocols, to supply the DEPARTMENT with the same. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate response needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. The COUNTY has supplied to the DEPARTMENT, at the execution of this Contract, a copy of any such current requirements and agrees, upon any amendment to the said requirements to supply the DEPARTMENT with the same.

20.

21.

22.

23.

B.

C.

D.

FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist. RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. The COUNTY has supplied to the DEPARTMENT, at the execution of this Contract, a copy of any such current policies and procedures and agrees, upon any amendment to the said requirements to supply the DEPARTMENT with the same. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. The COUNTY has supplied to the DEPARTMENT, at the execution of this Contract, a copy of any such current requirements and agrees, upon any amendment to the said requirements to supply the DEPARTMENT with the same. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

E.

F.

G.

H.

24.

FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State

or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. 25. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows: As to the COUNTY: MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 THE TOWN OF FRANKLIN ATTN: Town Manager 95 East Main St. Franklin, NC 28734-3025 FRANKLIN FIRE & RESCUE ATTN: Fire Chief 49 Maple Street Franklin, NC 28734

26.

27.

With a copy to:

As to the TOWN:

With a copy to:

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, The Town of Franklin has caused these presents to be signed in its name by its Mayor and attested by its Clerk, and the County of Macon has cause these presents to be signed in its name by the Chairman of its Board of Commissioners and attested by the Deputy Clerk of its Board of Commissioners in duplicate, each to serve as an original. This the _________ day of ______________, 2014.

THE TOWN OF FRANKLIN, a municipal corporation

____________________________________ Bob Scott, Mayor ATTEST: __________________________________ Janet A. Anderson, Town Clerk COUNTY OF MACON

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Bob Scott and Janet A. Anderson, personally appeared before me this day and acknowledged that they are the Mayor of The Town of Franklin and the Clerk for The Town of Franklin, and that by authority duly given and as the act of The Town of Franklin Board of Aldermen, the foregoing instrument was signed by such Mayor of The Town of Franklin, sealed with its corporate seal and attested by such Clerk to The Town of Franklin Board of Aldermen. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages, as required by section 18 of the Contract: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually.

2.

3.

4.

5.

6.

EXHIBIT B

EXHIBIT B-1

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Town of Highlands SUBJECT MATTER: Contract for Fire Protection DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Please see the attached document for more details. The County Attorney and Fire Marshall Jimmy Teem can provide additional information at the meeting. COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments __X__ Agenda Item 10H

Yes

___

No

STATE OF NORTH CAROLINA COUNTY OF MACON CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the _________ day of ______________, 2014. ___________________________ Macon County Finance Officer

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the _________ day of ______________, 2014. _________________________________ Town of Highlands Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the TOWN OF HIGHLANDS, a municipal corporation, (hereinafter TOWN) and controlling authority of Highlands Fire & Rescue (hereinafter DEPARTMENT), and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may

be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide or maintain for the DISTRICT, known as Highlands District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed;

NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT, known as Highlands District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. Purchase, leasing and maintenance of equipment and apparatus; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations;

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Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget as a part of the TOWNs budgetary process, in accordance with applicable law. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the TOWN, the DEPARTMENT or by TOWN employees, in accordance with applicable law. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The TOWN shall maintain a written accounting system as required by applicable law, including but not limited to the Local Government Budge and Fiscal Control Act. Copies of the proposed DEPARTMENT budget for the ensuing fiscal year and the TOWNs most recent certified annual audit shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract. Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this

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Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT. 5. ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time during reasonable business hours by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal to that office, with a copy to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District. WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums.

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OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the TOWN shall procure all insurance coverages stated in paragraphs 1, 2, and 6 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured. ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY.

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PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols, a current copy of which has been supplied to the DEPARTMENT with the execution of this Contract. The COUNTY agrees, upon any amendment to the said protocols, to supply the DEPARTMENT with the same. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate response needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. The COUNTY has supplied to the DEPARTMENT, at the execution of this Contract, a copy of any such current requirements and agrees, upon any amendment to the said requirements to supply the DEPARTMENT with the same. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. The COUNTY has supplied to the DEPARTMENT, at the execution of this Contract, a copy of any such current policies and procedures and agrees, upon any amendment to the said requirements to supply the DEPARTMENT with the same. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. The COUNTY has supplied to the DEPARTMENT, at the execution of this Contract, a copy of any such current requirements and agrees, upon any amendment to the said requirements to supply the DEPARTMENT with the same. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its

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provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. 27. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows: As to the COUNTY: MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 TOWN OF HIGHLANDS ATTN: Town Manager P. O. Box 460 Highlands, NC 28741-0460 HIGHLANDS FIRE & RESCUE ATTN: Fire Chief P. O. Box 460 Highlands, NC 28741-0460

With a copy to:

As to the TOWN:

With a copy to:

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the Town of Highlands has caused these presents to be signed in its name by its Mayor and attested by its Clerk, and the County of Macon has cause these presents to be signed in its name by the Chairman of its Board of Commissioners and attested by the Deputy Clerk of its Board of Commissioners in duplicate, each to serve as an original. This the _________ day of ______________, 2014.

TOWN OF HIGHLANDS

____________________________________ Patrick Taylor, Mayor ATTEST: __________________________________ Rebecca R. Shuler, Town Clerk COUNTY OF MACON

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Patrick Taylor and Rebecca R. Shuler, personally appeared before me this day and acknowledged that they are the Mayor of the Town of Highlands and the Town Clerk for the Town of Highlands , and that by authority duly given and as the act of the Town of Highlands Board of Commissioners, the foregoing instrument was signed by such Mayor of the Town of Highlands, sealed with its corporate seal and attested by such Clerk to the Town of Highlands Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY

I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages, as required by section 18 of the Contract: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually.

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EXHIBIT B

EXHIBIT B-1

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Volunteer Fire Departments SUBJECT MATTER: Contracts for Fire Protection DEPARTMENT HEAD COMMENTS/RECOMMENDATION: The contracts for fire protection with the countys nine rural volunteer fire departments contain much of the same language as those with the two towns. However, they are included in the packet for your review and information as follows:
1. 2. 3. 4. 5. 6. 7. 8. Burningtown-Iotla Volunteer Fire & Rescue, Inc.; Clarks Chapel Fire and Rescue Department, Inc.; Cowee Volunteer Fire/Rescue, Inc.; Cullasaja Gorge Fire and Rescue, Inc.; Mountain Valley Volunteer Fire & Rescue Inc.; Nantahala Volunteer Fire and Rescue, Inc.; Otto Volunteer Fire and Rescue, Inc.; Sky Valley-Scaly Mountain Volunteer Fire and Rescue Incorporated; and 9. West Macon Fire and Rescue, Inc.

These have been listed separately on the agenda, as the board may want to consider them individually or as a group; however, Jimmy Teem has indicated that the Sky Valley-Scaly Mountain contract may require special attention as it involves a Georgia non-profit corporation. The County Attorney can advise accordingly.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ___X__

Yes

___

No

Agenda Item 10I 1 through 9

STATE OF NORTH CAROLINA COUNTY OF MACON CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the BURNINGTOWN-IOTLA VOLUNTEER FIRE & RESCUE, INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at _____________________________________ , Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide or maintain for the DISTRICT, known as Burningtown District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1

attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in saide DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within said DISTRICT, known as Burningtown District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect.

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FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

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Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from the COUNTY, the DEPARTMENT shall host at least one meeting in which the general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of

information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract. Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this

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Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT. 5. ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District. WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums.

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OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured. ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY.

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PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist. RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years.

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MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 BURNINGTOWN-IOTLA VOLUNTEER FIRE & RESCUE, INC. _______________________________________ Franklin, NC 28734

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. BURNINGTOWN-IOTLA VOLUNTEER FIRE & RESCUE, INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Burningtown-Iotla Volunteer Fire & Rescue, Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY

I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Burningtown Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the CLARKS CHAPEL FIRE AND RESCUE DEPARTMENT, INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at __________________, Franklin, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide or maintain for the DISTRICT, known as Clarks Chapel District as shown upon the Fire District Map

approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within saide DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT known as Clarks Chapel District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto . The amount of such service tax levy shall be determined by the

Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of saide DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any othe rFire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

3.

Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from the COUNTY, the DEPARTMENT shall host at least one meeting in which the

general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract.

C.

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Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

5.

ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District.

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WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured.

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ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 CLARKS CHAPEL FIRE AND RESCUE DEPARTMENT, INC. ____________________________________________ Franklin, NC 28734

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. CLARKS CHAPEL FIRE AND RESCUE DEPARTMENT, INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Clarks Chapel Fire and Rescue Department, Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Clarks Chapel Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the COWEE VOLUNTEER FIRE/RESCUE, INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at ______________________, Franklin, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide or maintain for the DISTRICT known as Cowee District as shown upon the Fire District Map

approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in the DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within said DISTRICT known as Cowee District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto. The amount of such service tax levy shall be determined by the Board of the

County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

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Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from the COUNTY, the DEPARTMENT shall host at least one meeting in which the

general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract.

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Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

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ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District.

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WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured.

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ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 COWEE VOLUNTEER FIRE/RESCUE, INC. _______________________________ Franklin, NC 28734

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. COWEE VOLUNTEER FIRE/RESCUE, INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Cowee Volunteer Fire/Rescue, Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY

I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Cowee Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the CULLASAJA GORGE FIRE AND RESCUE, INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at _______________________, Franklin, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide

or maintain for the DISTRICT, known as Cullasaja District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT known as Cullasaja District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1

attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of district DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any othe rFire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

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Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from

the COUNTY, the DEPARTMENT shall host at least one meeting in which the general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract.

C.

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F.

Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

5.

ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District.

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WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured.

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ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 CULLASAJA GORGE FIRE AND RESCUE, INC. __________________________________ Franklin, NC 28734

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. CULLASAJA GORGE FIRE AND RESCUE, INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Cullasaja Gorge Fire and Rescue, Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY

I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Cullasaja Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the MOUNTAIN/VALLEY VOLUNTEER FIRE & RESCUE INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at __________________, Franklin, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide

or maintain for the DISTRICT, known as Mountain Valley District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT, known as Mountain Valley District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on

Exhibit B-1 attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any othe rFire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

3.

Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from

the COUNTY, the DEPARTMENT shall host at least one meeting in which the general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract.

C.

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Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

5.

ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District.

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WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured.

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ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

F.

G.

H.

24.

FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 MOUNTAIN/VALLEY VOLUNTEER FIRE & RESCUE INC. ___________________________________________ Franklin, NC 28734

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. MOUNTAIN/VALLEY VOLUNTEER FIRE & RESCUE INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Mountain/Valley Volunteer Fire & Rescue Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY

I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Mountain Valley Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the NANTAHALA VOLUNTEER FIRE AND RESCUE, INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at __________________,_______________, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide

or maintain for the DISTRICT, known as Nantahala District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT, known as Nantahala District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1

attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

3.

Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from

the COUNTY, the DEPARTMENT shall host at least one meeting in which the general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract.

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Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

5.

ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District.

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WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured.

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ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 NANTAHALA VOLUNTEER FIRE AND RESCUE, INC. __________________________________ __________________________________

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. NANTAHALA VOLUNTEER FIRE AND RESCUE, INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Nantahala Volunteer Fire and Rescue, Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY

I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Nantahala Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the OTTO VOLUNTEER FIRE AND RESCUE, INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at __________________, __________________, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide

or maintain for the DISTRICT, known as Otto District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT, known as Otto District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached

hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to saidDISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

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Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from

the COUNTY, the DEPARTMENT shall host at least one meeting in which the general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract.

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Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

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ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District.

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WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured.

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ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 OTTO VOLUNTEER FIRE AND RESCUE, INC. __________________________________ __________________________________

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. OTTO VOLUNTEER FIRE AND RESCUE, INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Otto Volunteer Fire and Rescue, Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Otto Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the _________ day of ______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the SKY VALLEY-SCALY MOUNTAIN VOLUNTEER FIRE AND RESCUE INCORPORATED, a Georgia non-profit 501(c)(3) corporation authorized to transact business in the State of North Carolina (hereinafter DEPARTMENT), with an office located at ___________________, Scaly Mountain, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied

throughout the county and in such amount as allowed by applicable law, in order to finance, provide or maintain for the DISTRICT, known as Scaly District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT, known as Scaly District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11,

2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

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Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED.

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The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from the COUNTY, the DEPARTMENT shall host at least one meeting in which the general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further

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interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract. F. Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

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ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of saidDISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this

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Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District. 11. WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs

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3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured. 19. ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the

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Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist. E. RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary.

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NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows: As to the COUNTY: MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 SKY VALLEY - SCALY MOUNTAIN VOLUNTEER FIRE AND RESCUE INCORPORATED P. O. Box 278 Scaly Mountain, NC 28775-0278

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. SKY VALLEY - SCALY MOUNTAIN VOLUNTEER FIRE AND RESCUE INCORPORATED

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for Sky Valley - Scaly Mountain Volunteer Fire and Rescue Incorporated, a Georgia non-profit 501(c)(3) corporation authorized to transact business in the State of North Carolina, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY

I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

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EXHIBIT B

EXHIBIT B-1 Scaly Fire District

STATE OF NORTH CAROLINA COUNTY OF MACON

CERTIFICATE OF FINANCE OFFICER: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. This the ________ day of______________, 2014. ___________________________ Macon County Finance Officer

CONTRACT FOR FIRE PROTECTION

THIS CONTRACT, made and entered into this _____ day of _________________, 2014, by and between the WEST MACON FIRE AND RESCUE, INC., a North Carolina non-profit corporation (hereinafter DEPARTMENT), with principal offices located at __________________, Franklin, Macon County, North Carolina, and the COUNTY OF MACON, a political subdivision for the State of North Carolina (hereinafter COUNTY). WITNESSETH: WHEREAS, Fire Protection Service Districts have been duly and properly created, defined and established in the COUNTY pursuant to the provision of Article 16 of Chapter 153A of the North Carolina General Statutes in order to provide fire protection services to areas encompassed by such districts; and WHEREAS, the General Assembly of North Carolina did enact into law an act to authorize automatic aid agreement and mutual assistance between fire departments whereby full authority may be exercised for fire departments to send fire fighters and apparatus beyond the territorial limits which they normally serve, said act having been codified as N.C. Gen. Stat. 58-83-1; WHEREAS, pursuant to N.C. Gen. Stat. 153A-233, 153A-301 and 153A-305, the COUNTY may provide fire protection services in defined service districts by contract with one or more municipal and/or one or more incorporated volunteer fire departments; and WHEREAS, the COUNTY is authorized under the provisions of N.C. Gen. Stat. 153A-305 and 153A-307 to levy property taxes within defined service districts, in addition to those levied throughout the county and in such amount as allowed by applicable law, in order to finance, provide

or maintain for the DISTRICT , known as West Macon District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on Exhibit B-1 attached hereto, services provided therein in addition to or to a greater extent than those financed, provided or maintained for the entire county; and WHEREAS, the COUNTY has heretofore furnished fire protection services in said DISTRICT, to the extent of the taxes collected pursuant to statutory authorization, by contracting with the DEPARTMENT to furnish fire protection in said DISTRICT; and WHEREAS, said DISTRICT is currently served by the DEPARTMENT; and WHEREAS, the Board of County Commissioners, in accordance with the provision of N.C. Gen. Stat. 159A-14, must set a special tax rate based on an annual budget estimate setting forth the monetary requirements for providing fire protection services that year in said DISTRICT and keep and administer said monies in a separate and special revenue fund (hereinafter Revenue Fund) to be used only for furnishing fire protection services within said DISTRICT; and WHEREAS, the Board of County Commissioners, also acting pursuant to N.C. Gen. Stat. 159-14A, must adopt an annual budget ordinance appropriating tax monies levied and collected from the fire protection service districts and authorize transfers and expenditures from the Revenue Fund only for fire protection services in the respective fire districts as specified in contracts with fire departments; and WHEREAS, Chapter 159 of the North Carolina General Statues provides that the County Budget Ordinance may be in any form that the Board of County Commissioners deems most efficient in enabling it to make the fiscal policy decisions embodied therein and provides for a fund for each special service district whose taxes are collected by the COUNTY; and WHEREAS, pursuant to N.C. Gen. Stat. 153A-13, 153A-233 and 153A-305, both the DEPARTMENT and the COUNTY desire to enter into a continuing contract to provide fire protection services in said DISTRICT and to have such contract supersede and take the place of any contracts previously executed; NOW THEREFORE, for and in consideration of mutual promises and agreements herein contained and the mutual benefits to be derived therefrom and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the DEPARTMENT and the COUNTY do hereby promise and agree as follows: 1. PAYMENT OF TAXES TO THE DEPARTMENT. So long as this Contract remains in effect, the COUNTY agrees to make funds available to the DEPARTMENT from the proceeds of the special fire protection service district tax levied and collected from within the DISTRICT, known as West Macon District as shown upon the Fire District Map approved by the Macon County Board of Commissioners at its Regular Meeting held on February 11, 2008, a copy of which is attached hereto as Exhibit B and as further shown on

Exhibit B-1 attached hereto. The amount of such service tax levy shall be determined by the Board of the County Commissioners from year to year. Payments will be made on a monthly basis issued by the 15th day of the following month provided this Contract remains in effect. 2. FIRE PROTECTION SERVICES REQUIRED. So long as this Contract remains in effect, the DEPARTMENT will furnish not less than Class 9S fire protection and emergency medical and rescue services that the DEPARTMENT is licensed and/or trained to provide to all property located within the boundaries of said DISTRICT. The DEPARTMENT will also provide emergency preparedness/protective measures when the COUNTY is exposed to a hazard as defined in 42 U.S.C. 519a. Nothing in the Contract shall be construed to prevent the DEPARTMENT from providing Mutual Aid Assistance to any other Fire Department within the discretion of the Chief or Officer in Charge. The DEPARTMENT will respond and provide automatic aid for structure fires in neighboring districts which have been established. When responding in an automatic capacity, the DEPARTMENT will dispatch a piece of fire apparatus capable of carrying a minimum of 1,000 gallons of water at approximately the same time as the Department in which district the incident occurs. Fire Protection shall specifically include the provision of such emergency medical, and rescue services that the DEPARTMENT is licensed or trained to provide in order to protect the persons within said DISTRICT from injury or death. Nothing shall be construed to prevent the DEPARTMENT from providing Fire Service or Mutual Aid Assistance so long as the DEPARTMENT continues to provide service to said DISTRICT at a level no less than the DEPARTMENTs current insurance rating as determined by the North Carolina Department of Insurance. Further, the DEPARTMENT may furnish Fire Service to areas not within the boundaries of any Fire District on an equipment and personnel basis within the discretion of the Chief or Officer in Charge. LIMITATIONS ON USE OF FIRE SERVICE DISTRICT TAX. Funds paid by the COUNTY to the DEPARTMENT shall be used for one or more of the following purposes and for no other purposes: A. B. C. D. E. F. Purchase and maintenance of equipment; Purchase, construction and repair of fire stations; Amortization of loans incurred for purchase, construction or repair of equipment of fire stations; Operations of the DEPARTMENT; Casualty or life insurance upon DEPARTMENT members; and Workers Compensation Insurance premiums.

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Funds paid by the COUNTY pursuant to this Contract shall be expended only as allowed by applicable federal, state and local laws, rules, orders and regulations. 4. ANNUAL BUDGET AND FINANCIAL RECORDKEEPING REQUIRED. A. The DEPARTMENT shall prepare an annual budget, for the fiscal year beginning July 1 of each year, providing for the receipt and expenditure of funds received from

the COUNTY, the DEPARTMENT shall host at least one meeting in which the general public may attend and review the proposed budget and make comment or inform the residents of their community through newsletter or other form of information distribution of their budgetary needs and subsequent request of the COUNTY. The COUNTY encourages the DEPARTMENT to have at least one person from said DISTRICT who is not an active member of the DEPARTMENT to serve as a Board member. B. The DEPARTMENT shall use the funds subject to this Contract in accordance with the annual DEPARTMENT budget. The budget may be amended by the Fire Department Board of Directors within the funds made available by this Contract except that amendments providing for any expenditure that establishes a new operating expense that will extend beyond the current fiscal year shall require the concurrence of the Macon County Fire Marshals Office. The COUNTY may inspect the financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial books and records of the DEPARTMENT at reasonable times during regular business hours of the COUNTY. The DEPARTMENT agrees that it will supply such financial records, information or verification as may reasonably be requested by the COUNTY. The DEPARTMENT shall maintain a written accounting system which provides adequate documentation of all its receipts and disbursements including, but not limited to, those related to the funds subject to this Contract. The DEPARTMENT shall also provide an annual report of revenues and expenditures from the previous calendar year certified by the DEPARTMENTs President and Treasurer. Copies of the budget and certified annual report of revenues and expenditures shall be filed with the Macon County Fire Marshal by the third Friday in April preceding the beginning of the fiscal year. In the event that the COUNTYs review of the financial records of the DEPARTMENT reveals any deficiencies or irregularities in the financial operations of the DEPARTMENT, or reportable and/or material issues(s) with regard to compliance of generally accepted accounting principles, the COUNTY shall give written notice thereof to the Fire Chief, the Chairperson of the Board or Chief Executive Officer, and at least two (2) lesser officer of the DEPARTMENT. Within ten (10) calendar days of said notice, the DEPARTMENT shall provide to the COUNTY a written statement that contains an explanation of each such issue and an action plan (with implementation timetable) for resolving each such issue, and shall provide periodic reports to the COUNTY on progress made in resolution of each issue. Resolution shall be made within thirty (30) days of Notice. If this Contract shall terminate before such correction, the DEPARTMENT shall have no further interest in or claim upon such funds. The DEPARTMENT shall be legally liable to the COUNTY for any funds expended in violation of the terms of this Contract.

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Should the DEPARTMENT fail to submit to the COUNTY the information required in this Paragraph 4 within the time periods outlined in Sub-paragraphs 4B - E of this Contract, the COUNTY shall suspend all funds immediately until the information is delivered as set forth above, except that the Macon County Fire Marshal may grant a reasonable submittal extension if the DEPARTMENT is unable to deliver the information for reasons beyond the control of the DEPARTMENT.

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ADDITIONAL RECORD KEEPING REQUIREMENTS. The DEPARTMENT will maintain accurate written records regarding personnel training, infection control, Articles of Incorporation, by-laws, fire district map and description, insurance district resolution, contracts with counties and municipal governments, engine/pumper service test, certified weight tickets for all apparatus, alarm log, meeting minutes, equipment inventory and apparatus inspection forms, which may be inspected at any time by or on behalf of the COUNTY. ROSTER REQUIRED. The DEPARTMENT shall submit a copy of the roster sent to the office of the State Fire Marshal, to the Macon County Fire Marshal by June 1 of each year. The roster must have a minimum of twenty (20) personnel with eight (8) additional personnel for each substation. REPORT OF RURAL FIRE CONDITIONS REQUIRED. The DEPARTMENT shall submit a Report of Rural Fire Conditions on the form provided by the Office of the State Fire Marshal, to the Macon County Fire Marshal by October 1 of each calendar year. CALL LIST INFORMATION REQUIRED. The DEPARTMENT shall provide a list of information including DEPARTMENT mailing address, phone number, fax number, e-mail address, radio call number for all personnel, line officers, board officers, medical certifications, firefighter certifications and contact numbers for all personnel and an apparatus list to the Macon County Fire Marshal by January 31 of each calendar year. TERMS OF CONTRACT. This Contract shall be come effective as of the date set out in Paragraph 14 of this Agreement, subject to the continued legal existence of said DISTRICT and the DEPARTMENT, and shall continue from fiscal year to fiscal year unless sooner terminated by either party in accordance with Paragraph 10 of this Contract. TERMINATION OF CONTRACT. Either party may terminate this Contract upon giving the other party at least eight (8) months advance written notice. The COUNTY may, in its discretion, immediately terminate this Contract in the event that the DEPARTMENT does not timely correct deficiencies as provided in Paragraphs 4 and 12 or correct any other material breach of this Contract within a reasonable time after notice of such breach. From and after the effective date of any termination of this Contract the DEPARTMENT shall have no further obligations, including the provision of Fire Services in said DISTRICT, under this Contract and shall have no further right to receive any Fire Protection Taxes collected by the COUNTY within the Fire Protection District.

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WORKERS COMPENSATION INSURANCE. The DEPARTMENT will be responsible for payment of workers compensation insurance premiums. OPERATIONS DEFICIENCIES. The DEPARTMENT shall provide notice to the Macon County Fire Marshal of any facility, equipment or operations deficiencies (collectively Operations Deficiency) which have surfaced as a result of any inspections conducted by any agency, such as the North Carolina Department of Insurance or the Insurance Services Office. The COUNTY may, in its discretion, withhold all funds payable to the DEPARTMENT pursuant to this Contract as long as the North Carolina Department of Insurance, the Insurance Services Office or the COUNTY holds the DEPARTMENT to be in Operations Deficiency. The COUNTY, in its discretion, has the right to terminate this Contract immediately if the DEPARTMENT fails to remedy any Operations Deficiency within a reasonable time, in no case later than eight (8) months from the date the DEPARTMENT was made aware of the Operations Deficiency(s). If this Contract shall terminate without such Operations Deficiencies being corrected, the DEPARTMENT shall have no further interest in or claim upon the funds withheld. AMENDMENT TO CONTRACT. This Contract may only be amended by written agreement of the parties. EFFECTIVE DATE. This Contract shall become effective as of the date on which the last party executes this Contract. APPROVAL BY DEPARTMENT. The DEPARTMENT represents by the execution of this document by its President that this instrument has been duly approved by the DEPARTMENT. SEVERABILITY. If any clause, paragraph, or part of this Contact is determined to be void or unenforceable by a Court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. INDEPENDENT CONTRATOR. The DEPARTMENT understands and agrees that, in entering into this agreement and providing services, it is acting as an independent contractor; neither the DEPARTMENT nor its employees, members or personnel shall be deemed or construed to be employees of the COUNTY. INDEMNITY AGREEMENT. The DEPARTMENT shall indemnify and save the COUNTY harmless from any and all liability and expenses including attorneys fees, court costs and other costs incurred by COUNTY which are caused by the negligence of the DEPARTMENT, its agents, members, employees and personnel, to the extent of the DEPARTMENTs insurance coverage. For this reason, the DEPARTMENT shall procure all insurance coverages stated in paragraphs 1, 2, 6 and 7 of Exhibit A, attached (paragraphs 3, 4 and 5 are optional), and shall cause the COUNTY to be named as an Additional Insured for liability coverage on all policies procured.

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ASSIGNMENT. This Contract may not be transferred or assigned by the DEPARTMENT without the prior written consent of the COUNTY. PRIOR CONTRACTS TERMINATED. All prior Contracts for fire protection entered between the DEPARTMENT and the COUNTY shall be deemed terminated as of the effective date of this Contract and this Contract shall be deemed to supersede any prior Contracts or other agreements. NO WAIVER. Failure of the COUNTY to enforce any of the provisions of this CONTRACT at any time, or to request performance by the DEPARTMENT pursuant to any of the provisions of this Contract at any time shall in no way be construed as a waiver of such provisions, nor in any way affect the validity of this Contract, or any part therof, or the right of the COUNTY to enforce each and every provision. COMPLIANCE WITH LAWS, RULES and REGULATIONS. The DEPARTMENT shall comply with all applicable federal, state and local laws, rules, and regulations. Failure to do so will be grounds for immediate termination of this Contract. MINIMUM PERFORMANCE STANDARDS. The following minimum performance standards are agreed to by the COUNTY and the DEPARTMENT and are a part of this contract: A. DISPATCHING PROTOCOLS: Each DEPARTMENT shall comply with the COUNTY dispatching protocols. PERSONNEL (ON SCENE): Each Fire Department should have an adopted standard operating guideline that addresses the appropriate number of firefighters needed on all type fire calls. A current, valid copy of the Fire DEPARTMENTs guideline should be kept on file with the Macon County Fire Marshals Office. Each Fire Department should have the goal of placing sufficient personnel on the scene when making initial attack on all structure fire calls or when responding to other emergency situations. TRAINING: Each Fire Department shall meet the minimum standard training requirements set forth by the State of North Carolina and the COUNTY where applicable for providing Fire and Rescue services. FIRE INVESTIGATIONS: The Fire Department officer in charge at all fire scenes shall attempt to determine the origin and cause of every fire. When the officer in charge can not determine the origin and cause of the fire or if the cause is suspected to be incendiary in nature, the officer in charge shall request a representative from the Macon County Fire Investigation Support Team, the Macon County Fire Marshals Office and/or the appropriate law enforcement agency to assist.

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RECORDS: Each Fire Department shall keep all records on site or easily accessible for at least five (5) years. MEDICAL FIRST RESPONDER: Each Fire Department may choose to participate in the County Medical First Responder Program. Participation is fully voluntary. However, each Fire Department which participates in the program shall conform to the Macon County First Responder policies and procedures. EMERGENCY DISASTER RESPONSE: Each Fire Department shall follow the Macon County Emergency Operations Plan when responding to an emergency disaster. STATE OF EMERGENCY: The COUNTY may request the Fire Departments to assist with other life saving and property protection measures as necessary during a State of Emergency. All operations shall be in accordance with the Macon County Emergency Operations Plan and Macon County Emergency Management Ordinance.

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FEES FOR SERVICE. A service fee may be charged for false and frivolous residential or business fire alarm calls as follows: The first such alarm is free; the second such alarm will result in a letter being sent from the DEPARTMENT to the property owner requesting they correct the problem within ten (10) days; and such calls thereafter, within a twelve month period, may result in the DEPARTMENT charging the property owner a service fee. The DEPARTMENT may attempt to file a claim with an individual, insurance carrier, or other responsible party for reimbursement for consumable supplies or damaged equipment resulting from a hazardous materials incident when such expenses would place an undesirable financial burden upon the DEPARTMENT. The DEPARTMENT shall furnish other fire, rescue, medical or other such emergency protection action that they are trained and/or certified to provide without charge to all persons and property located in said DISTRICT in an efficient manner. This provision shall not prohibit the DEPARTMENT from entering into contracts with the Federal, State or local governments or utility companies for the provision of emergency protection services not inconsistent with the DEPARTMENTs duties under this Contract for a fee. GOVERNING LAW. Unless otherwise specified, this Contract shall be governed by the laws of the State of North Carolina. All litigation arising out of this Contract shall be brought in the General Court of Justice in the County of Macon, North Carolina. HEADINGS. The subject headings of the paragraphs are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Contract shall be deemed to have been drafted by both parties and no purposes of interpretation shall be made to the contrary. NOTICES. All notices which may be required by this Contract or any rule of law shall be effective when deposited in an official depository of the United States Postal Service or when received by hand-delivery as follows:

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As to the COUNTY:

MACON COUNTY MANAGER 5 West Main St., Courthouse Annex Franklin, NC 28734-3005 MACON COUNTY FIRE MARSHAL 104 E. Main St. Franklin, NC 28734 WEST MACON FIRE AND RESCUE, INC. ______________________________ ______________________________ Franklin, NC 28734

With a copy to:

As to the DEPARTMENT:

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized officers in duplicate, each to serve as an original, this the day and year first above written. WEST MACON FIRE AND RESCUE, INC.

______________________________(SEAL) President

ATTEST: _____________________________________ Corporate Secretary

MACON COUNTY

______________________________ Kevin Corbin, Chairman Macon County Board of Commissioners ATTEST: _____________________________________ Mike Decker, Deputy Clerk to the Board

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that _________________________________, personally came before me this day and acknowledged that he (or she) is Corporate Secretary for West Macon Fire and Rescue, Inc., a North Carolina non-profit corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself (or herself) as its secretary foregoing on behalf of the corporation. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

NORTH CAROLINA MACON COUNTY I, ________________________________________, Notary Public for Macon County, North Carolina, certify that Kevin Corbin and Mike Decker, personally appeared before me this day and acknowledged that they are the Chairman of the Macon County Board of Commissioners and the Deputy Clerk to the Macon County Board of Commissioners for Macon County, North Carolina, and that by authority duly given and as the act of Macon County, North Carolina, the foregoing instrument was signed by such Chairman of the Macon County Board of Commissioners, sealed with its corporate seal and attested by such Clerk to the Macon County Board of Commissioners. Witness my hand and official seal, this the _____ day of ____________________, 2014.

(OFFICIAL SEAL)

___________________________________ ______________________, Notary Public Printed Name of Notary My Commission Expires:_____________________

EXHIBIT A INSURANCE REQUIREMENTS The DEPARTMENT shall take out and maintain during the term of the Contract, the following insurance coverages: 1. Comprehensive Automobile Liability Insurance providing limits of liability at least in the amount of $1,000,000 combined single limits. Coverage shall be provided with a symbol l for liability. The policy shall also name volunteers and employees as insureds. The fellow member exclusion shall be removed. Automobile Collision and Comprehensive Insurance written on agreed value basis for all emergency vehicles except private passenger types. The agreed value shall be for the approximate replacement cost of the vehicles. Comprehensive General Liability Insurance including coverage for personal injury, property damage, contractual liability, products and completed operations coverage, and pollution liability for emergency operations and training operations away from premises. Coverage shall be provided for intentional bodily injury and property damage. Policy shall include coverage medical malpractice, not limited to bodily injury and including the failures to render medical services. Policy is to include coverage for failure to respond. Coverage shall also be provided for watercraft if any are owned. The limits shall be $1,000,000 combined single limits per occurrence and $2,000,000 aggregate limit. An Umbrella policy shall be provided with limits of $1,000,000 per occurrence and $1,000,000 aggregate. Directors & Officers coverage shall be provided with limits of $1,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be included for Civil Rights violations and Employment Related Practices. DEPARTMENT shall maintain Property Insurance under a special cause of loss form. The policy shall be written on a replacement cost basis with a guaranteed replacement cost endorsement on the building(s). All portable equipment shall be insured on a replacement cost basis with a guaranteed replacement cost endorsement attached. The DEPARTMENT shall name the COUNTY as an additional insured for liability purposes only on all policies. The DEPARTMENT shall furnish the COUNTY with Certificates of Insurance annually. Because the DEPARTMENT is receiving tax dollars or grant funds from the COUNTY, the DEPARTMENT shall maintain a Blanket Fidelity Bond in the amount of at least $100,000.

2.

3.

4.

5.

6.

7.

EXHIBIT B

EXHIBIT B-1 West Macon Fire District

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Planning Board SUBJECT MATTER: Topics for board discussion DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Commissioner Tate has requested time on the agenda for the commissioners to discuss the next topic or topics for discussion or study by the Macon County Planning Board.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments _____ Agenda Item 10J

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Governing Board SUBJECT MATTER: Waiver of inspection fees DEPARTMENT HEAD COMMENTS/RECOMMENDATION: Commissioner Haven has requested time on the agenda for a discussion of a possible waiver of county inspection fees for the proposed REACH facility. COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 10K

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Governing Board SUBJECT MATTER: Consent Agenda DEPARTMENT HEAD COMMENTS/RECOMMENDATION:
A. Minutes Consideration of the minutes from the December 10, 2013 meeting, per attachment 11A. Finance Consideration of Budget Amendments #68 through #75 and #79, per attachment 11B. Tax releases Consideration of tax releases in the amount of $602.83, per Attachment 11C. The supporting documentation is on file in the Deputy Clerks office. Monthly Tax Collection Report For the boards information, the monthly ad valorem tax collection report is attached as attachment 11D. It does not require board action.

B.

C.

D.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ___X__

Yes

___

No

Agenda Item 11(A)-11(D)

MACON COUNTY BOARD OF COMMISSIONERS DECEMBER 10, 2013 MINUTES The Interim County Manager called the meeting to order at 6:03 p.m. and welcomed those in attendance. All Board Members, the County Attorney, members of the news media and interested citizens were present. ELECTION OF CHAIRMAN: The Interim County Manager conducted the election for the office of chairman, and opened the floor for nominations. Commissioner Beale nominated Commissioner Corbin as chairman, and the nomination was seconded by Commissioner Tate. There were no other nominations. With no further discussion, the Interim County Manager closed nominations and called for a vote on the motion, which was approved 4-0 (with Commissioner Corbin abstaining). The gavel was then passed to Chairman Corbin. ELECTION OF VICE-CHAIRMAN: Chairman Corbin opened the floor for nominations for the office of vice-chairman, and Commissioner Tate nominated Commissioner Beale as vice-chairman. The nomination was seconded by Commissioner Haven. There were no other nominations. With no further discussion, Chairman Corbin closed nominations and called for a vote on the motion, which was approved 4-0 (with Commissioner Beale abstaining). EXAMINATION OF OFFICIAL BOND FOR PUBLIC OFFICIALS OF MACON COUNTY: The Interim County Manager explained that North Carolina General Statute (N.C.G.S.) 58-72 requires that the board annually examine the bonds of the public officers listed in N.C.G.S. 5872.12, which includes the Finance Director, Tax Administrator, Register of Deeds and Sheriff. For the record, it was noted that the Finance Director has secured the appropriate bonds with sufficient surety from The Ohio Casualty Insurance Company in order to qualify those officials listed for office. Upon a motion by Commissioner Haven, seconded by Minutes 12.10.13 Page 1 of 6

Commissioner Tate, the board voted unanimously to approve a resolution entitled Examination of Official Bonds for Public Officials of Macon County, a copy of which is attached (Attachment 1) and is hereby made a part of these minutes. ADOPTION OF 2014 REGULAR MEETING SCHUDULE: Chairman Corbin explained that due to scheduling conflicts and a county holiday, there was the need to adjust the boards regular meeting schedule for 2014. The County Attorney explained that in order to do so, the board would need to adopt a resolution that formally establishes a new schedule of regular meetings. Following discussion and upon a motion by Commissioner Haven, seconded by Commissioner Beale, the board voted unanimously to adopt a Resolution Establishing New Schedule of Regular Meetings of the Macon County Board of County Commissioners, a copy of which is attached (Attachment 2) and is hereby made a part of these minutes. ANNOUNCEMENTS: Commissioner Haven wished everyone Happy Holidays. Commissioner Beale said he would deliver a report regarding the Rural Planning Organization (RPO) later in the meeting. Commissioner Tate reported that the initial meeting with Mission Critical Partners regarding the survey of emergency radio communications went well. Chairman Corbin announced that the county was awarded a $500,000 Parks and Recreation Trust Fund (PARTF) grant. He recognized Seth Adams, the countys recreation director, and asked Mr. Adams and County Planner Matt Mason to come up with a plan for development of the Parker Meadows Recreational Park. The Interim County Manager noted for the record that Finance Director Lori Hall was attending a conference and would not be at the meeting. MOMENT OF SILENCE: Chairman Corbin asked those in attendance to observe a moment of silence. PLEDGE TO THE FLAG: the flag was recited. PUBLIC COMMENT: comment period. Led by Commissioner Higdon, the pledge to

No one signed up to speak during the public

ADJUSTMENTS TO AND APPROVAL OF THE AGENDA: Upon a motion by Commissioner Beale, seconded by Commissioner Tate, the board voted unanimously to approve the agenda as adjusted, as follows:

Minutes 12.10.13 Page 2 of 6

To add a report regarding the Rural Planning Organization (RPO) under Reports/Presentations as Item 12B, per Commissioner Beale. To add a report regarding the Board of Elections under Reports/Presentations as Item 12C, per Commissioner Tate. To add discussion of waste disposal as it relates to the Highlands swimming pool under New Business as Item 14C, per Commissioner Tate.

SOUTHWESTERN COMMUNITY COLLEGE MACON CAMPUS EXPANSION PLANS: Dr. Don Tomas, President of Southwestern Community College (SCC), introduced several members of the SCC Board of Trustees who were in attendance and then gave a PowerPoint presentation regarding the future of SCCs Macon Campus. Among the highlights of that presentation, Dr. Tomas noted that curriculum enrollment at the Macon Campus had increased 74.4 percent over a sixyear period from 2007 to 2013, and that likewise enrollment at the Public Safety Training Center had increased 72.9 percent over that same period. Dr. Tomas told the board that the existing Public Safety Training Center, located near the countys industrial park west of Franklin, no longer meets SCCs needs, and he then outlined three phases of building plans to expand the college campus at the Siler Farm Road location over the next 25 years. In order to fulfill these expansion plans, SCC would need 19.3 acres of the 82.7 remaining county-owned acres at the site, he said. The board agreed by consensus to take the request under advisement, and Commissioner Beale suggested that the board hold a half-day workshop with SCC Board of Trustees to discuss the plan. During the presentation, Dr. Tomas gave each board member a copy of a document entitled 2013 Master Plan Program For Macon County Campus Expansion, dated November 5, 2013, a copy of which is on-file at the Deputy Clerks office. Following the presentation, Chairman Corbin recognized Derek Roland, the new County Manager, and said that Mr. Roland would contact Dr. Tomas regarding a meeting of the two boards. REPORT ON REGIONAL PLANNING ORGANIZATION: Commissioner Beale gave the board an update on the Southwestern Commission (Region A) Rural Planning Organization (RPO) and the priority and point system process used to rank transportation projects within the region. He listed a number of Macon County projects and their status and pointed out that there are no longer state funds for secondary road maintenance. No action was necessary. Minutes 12.10.13 Page 3 of 6

REPORT ON BOARD OF ELECTIONS: Commissioner Tate said that he wanted to forewarn the board that Elections Director Kim Bishop would soon be appearing before the commissioners in regard to election changes relating to voter identification, the need for a second early-voting site and new forms, all of which Macon County will pick up the tab for. No action was necessary. 911 PHONE CONTROLLER UPGRADE PROJECT: Commissioner Tate started the discussion by commending both Emergency Management Director David Key and 911 Coordinator Todd Seagle for their work on the project. Mr. Key began by explaining that he was asking the board to appropriate funds from the countys 911 fund balance in order to replace a critical piece of equipment, specifically a new phone controller system for 911. Mr. Key gave a brief history of the countys 911 system, noting that dispatchers now answer approximately 32,000 calls a year. However, the phone switch in the system is now obsolete, with the only other known switch of this type being housed at the Smithsonian, and the new one has the capabilities to utilize text messages and photographs. Mr. Key explained that the North Carolina 911 Board, in a letter to Mr. Seagle, had approved an emergency appropriation for the new system in the amount of $348,465, with the remaining $195,946 to come from the countys 911 fund, pending board approval. Mr. Seagle told the board that with the 20-year-old analog system that is now in place, if it goes down tonight, we are dead in the water and could not answer 911 calls. The new system is digital, he explained, adding that the funds will actually purchase two switches. Following further discussion, Commissioner Tate made a motion to approve a budget amendment regarding the use of the money from the 911 fund balance, and Commissioner Beale seconded the motion. A representative of Century Link, the provider of the new equipment, told the board that Macon County had the oldest 911 phone system in the state of North Carolina. Following further discussion, the board voted unanimously to approve the budget amendment (Attachment 3), a copy of which is attached and is hereby made a part of these minutes. Also attached is a copy of the letter from the North Carolina 911 Board (Attachment 4), which is hereby made a part of these minutes. MACON COUNTY SCHOOLS REQUEST REGARDING SUPPLEMENTAL FUNDS: Macon County Schools Superintendent Dr. Chris Baldwin first congratulated the board on its selection of Mr. Roland as County Manager. He also thanked the board for its support of the school system and the $430,621 in supplemental funding that was provided this fiscal year. With $401,501 having gone to pay teachers a 2 percent Minutes 12.10.13 Page 4 of 6

supplement, Mr. Baldwin requested that the school system be allowed to use $27,736 of the remaining funds to pay supplements to the school principals and assistant principals, with the balance of the funds to go toward providing steel-toe boots for the school maintenance staff. Chairman Corbin noted that the Finance Director had requested that the county commission vote to approve the use of the remaining supplemental funds. Following discussion, and upon a motion by Commissioner Beale, seconded by Commissioner Haven, the board voted unanimously to give the Macon County Board of Education the discretion to spend the remaining $29,120 as it saw fit. Chairman Corbin declared a recess at 7:44 p.m. Chairman Corbin called the meeting back to order at 8 p.m. HIGHLANDS POOL WASTE DISPOSAL: Commissioner Tate explained that the county had helped fund the cost of the renovation of the Town of Highlands swimming pool in the amount of $250,000, but now the issue was how to dispose of the concrete from the old pool. In a conversation with Solid Waste Director Chris Stahl, Commissioner Tate said he learned that the board would need to waive the landfill fees for the concrete to be dumped there, adding that he was seeking the boards guidance for a solution. A number of possible options as to a disposal location for the concrete were discussed, but no action was taken. CONSENT AGENDA: Upon a motion by Commissioner Beale, seconded by Commissioner Tate, the following items on the consent agenda were unanimously approved: Minutes Approved the minutes from the November 12th, November 18th and November 26th meetings. Budget amendments Approved the following budget amendments: #59 for the Department of Social Services to appropriate $500 in additional Foster Care funds; #60 for the Department of Social Services to appropriate $4,500 in additional funds for the CRC; #61 for the Department of Social Services to appropriate $306 in additional funds for LIHEAP; #62 for the Health Department to appropriate $1,522 in additional TANF funds from the state; #63 for the Health Department to appropriate $3,994 in additional money awarded by the state for Health Promotion. (Revisions with corresponding numbers attached.) Tax releases Approved tax releases in the amount of $5,925.54 (A computer printout of releases is on file in the Tax Department and the County Managers office.) Monthly ad valorem tax collection report No action necessary.

Minutes 12.10.13 Page 5 of 6

APPOINTMENTS: (1) Board of Health Following a recommendation from Public Health Center Director Jim Bruckner, and upon a motion by Commissioner Higdon, seconded by Commissioner Beale, the board voted unanimously to reappoint Dr. Frank Killian as the licensed optometrist on the board, with the term of appointment to run from January 1, 2014 to December 31, 2016; to reappoint Dr. Roy Lenzo as the licensed veterinarian on the board, with the term of appointment to run from January 1, 2014 to December 31, 2016; and to appoint Dr. Nathan Brenner to serve the remaining term of Dr. David Silverstein as the licensed dentist on the board, with the term of appointment to run until June 30, 2014. (2) Planning Board -- Commissioner Higdon made a motion to reappoint Jimmy Goodman to the Planning Board, and it was seconded by Commissioner Haven. Following discussion, the motion failed 3-2, with Commissioners Haven and Higdon favoring and Commissioners Beale, Corbin and Tate opposing. Commissioner Tate made a motion to appoint Ben Lassiter to the Planning Board and it was seconded by Commissioner Beale. Following discussion, the motion passed 3-2, with Commissioners Beale, Corbin and Tate favoring and Commissioners Haven and Higdon opposing. The term of appointment is for three years, and will expire December 10, 2016. (3) Economic Development Commission (EDC) By consensus, the board agreed to delay consideration of this appointment until the January regular meeting. CLOSED SESSION: At 8:16 p.m., upon a motion by Commissioner Beale, seconded by Commissioner Haven, the board voted unanimously to go into closed session for the purpose of consulting with the attorney under NCGS 143-318.11(a)(3). At 8:35 p.m., upon a motion by Commissioner Haven, seconded by Commissioner Tate, the board voted unanimously to come out of closed session and return to open session. No action was taken. ADJOURN: At 8:36 p.m., upon a motion by Commissioner Haven, seconded by Commissioner Higdon, the board voted unanimously to adjourn.

_____________________________ Mike Decker, Interim County Manager Deputy Clerk to the Board Minutes 12.10.13 Page 6 of 6

______________________________ Kevin Corbin Board Chairman

===================================================================================== =============================================== Tax Collections Detail Transactions by Group RTC020303 01/02/14 Page 1 ===================================================================================== =============================================== Group Number REL*13*12 Abatement Effective Date 12/04/13 Seq Date Account Taxbill Rev Nbr Number Number Number Descriptn 1 12/04/13 49639 Tax Transaction Code Amount Levy Penalty Addl Interest Discnt Trn Check Trans Amount Amount Chgs 5.646.250.00 0.00 6.250.00 0.00 0.00 0.00 0.00 0.00 R CLERICA 0.00 0.00 0.00 R CLERICA 0.00 0.00 0.00 R CLERICA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 R CLERICA 0.00 0.00 0.00 R CLERICA 0.00 0.00 R CLERICA 0.00 0.00 R Amount Amount Cde

13A49639.01 G01 5.64F01 0.610.61- 0.00

*** D AND D SEAMLESS GUTTERING INC CLERICA 2 *** 3 *** 4 *** 5 *** 6 *** 7 *** 8 12/04/13 109474 13A7551135446 IDT PROPERTIES LLC 12/04/13 109474 13A7551134355 IDT PROPERTIES LLC 12/04/13 44271 L02 L02 78.0078.0078.0078.00-

0.00 78.000.00 0.00 78.000.00 78.000.00 0.00 78.00-

13A6585889562 G01 86.77F01 9.339.33- 0.00 96.10-

86.77- 0.00 0.00 0.00 0.00

O'NEILL, CONNIE 12/05/13 79335

96.10-

13A79335.06 G01 38.14F06 4.794.79- 0.00

38.14- 0.00 0.00 42.93-

OAKLEY, EDWARD MCKINLEY 12/05/13 79335

42.93-

12A79335.06 G01 39.32F06 4.934.93- 0.00

39.32- 0.00 0.00 44.25-

OAKLEY, EDWARD MCKINLEY 12/06/13 94838

44.25-

13A94838.01 G01 37.67F01 4.054.05- 0.00 41.72-

37.67- 0.00 0.00 41.720.00 0.00

PATTON, CAREY B JR 12/20/13 84852

13A6583587627 G01 45.2045.20- 0.00 F01 4.864.86- 0.00 0.00 L01 72.000.00 72.00- 0.00 122.0650.060.00 72.00-

***

GEORGE LLC

0.00 0.00 R CLERICA

file:///C|/Documents%20and%20Settings/mdecker/Desktop/REL1312.TXT[1/17/2014 2:18:06 PM]

9 *** 10 ***

12/20/13 81868

13A6594296799.1

L01

72.0072.000.00

0.00 72.000.00 72.00-

0.00 0.00 0.00 R CLERICA 0.00 0.00 0.00 R CLERICA

BANGERT, CAROL C

12/20/13 123852 13A123852.09 G01 18.42F09 3.103.10- 0.00 BATEMAN ENTERPRISES INC 21.52-

18.42- 0.00 0.00 21.52-

0.00 0.00

===================================================================================== =============================================== Tax Collections Detail Transactions by Group RTC020303 01/02/14 Page 2 ===================================================================================== =============================================== Group Number REL*13*12 Abatement Effective Date 12/04/13 Seq Date Account Taxbill Rev Nbr Number Number Number Descriptn Tax Transaction Code Amount Levy Penalty Addl Interest Discnt Trn Check Trans Amount Amount Chgs Amount Amount Cde

Tax Code Totals F01*13- FR FIRE F06*12- SCALY FR F06*13- SCALY FR F09*13- NANT FR G01*12- GEN TAX G01*13- GEN TAX L01*13- RES FEE L02*13- COM FEE Total for Group REL*13*12

18.8518.85- 0.00 0.00 0.00 0.00 4.934.93- 0.00 0.00 0.00 0.00 4.794.79- 0.00 0.00 0.00 0.00 3.103.10- 0.00 0.00 0.00 0.00 39.3239.32- 0.00 0.00 0.00 0.00 231.84231.84- 0.00 0.00 0.00 0.00 144.000.00 0.00 144.00- 0.00 0.00 156.000.00 0.00 156.00- 0.00 0.00 302.830.00 300.000.00 0.00

602.83-

********** Totals By Tax Cycle ********** Cycle Current Delinquent A 0.00 602.83-

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MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Governing Board SUBJECT MATTER: Appointments DEPARTMENT HEAD COMMENTS/RECOMMENDATION: (A) Town of Franklin appointment to the Economic Development Commission (EDC) Please see the attached letter from Town Manager Warren Cabe. (B) Franklin Area Chamber of Commerce appointment to the Economic Development Commission (EDC) Please see the attached letter from Linda Harbuck, the executive director of the chamber. (C)Economic Development Commission (1seat) Ed Shatleys term on the EDC expired December 31, 2013. The county has received an application from James B. (Jim) Bross, a copy of which is attached. (D) Expansion of the Recreation Commission The Deputy Clerk will provide information on this matter at the meeting.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:


Attachments __X__ Yes __ No

Agenda Item 12(A) 12(C)

January16,2014 Mr.TommyJenkins MaconCountyEconomicDevelopmentDirector 5WestMainStreet Franklin,NorthCarolina28734 DearTommy, TheFranklinAreaChamberofCommerceBoardmetthismorningandvotedtoappointtheirPresident Elect,JudyChapman,astheFranklinChamberrepresentativeontheMaconCountyEconomic DevelopmentCommission.JudyisPresidentElectthisyearandwillbePresidentnextyearandPast Presidentthefollowingyear.Sheispreparedtoserveathreeyeartermifthatiswhatyouneedforher todoastheFranklinChambersrepresentative.Hercontactinformationis:JudyChapman,c/oDNet, POBox1812,Franklin,NC28744.Phone:(828)3493638.Email:jchapman@dnet.net ThankyoufortheopportunitytohaverepresentationontheMaconCountyEDC.TheFranklinChamber isalwaysreadytoassistinanywaypossiblefortheadvancementofMaconCountyandFranklin,NC. Bestregards, LindaHarbuck,ExecutiveDirector FranklinAreaChamberofCommerce 425PorterStreet Franklin,NC28734 (828)5243161 lindah@franklinchamber.com

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 31, 2014 DEPARTMENT/AGENCY: Governing Board SUBJECT MATTER: Closed Session

DEPARTMENT HEAD COMMENTS/RECOMMENDATION: The Board will go into closed session for items related to preserving the attorney-client privilege and for the possible need to discuss personnel.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ______ Agenda Item 13

Yes

_X_

No

MACON COUNTY BOARD OF COMMISSIONERS AGENDA ITEM


MEETING DATE: January 21, 2014 DEPARTMENT/AGENCY: Governing Board SUBJECT MATTER: Recessed meeting DEPARTMENT HEAD COMMENTS/RECOMMENDATION: 1. The Board will recess this meeting until Saturday, January 25, 2014 at 9 a.m. at the Cecil L. Groves Center on the Macon County campus of Southwestern Community College, 44 Siler Farm Road, Franklin, NC 28734 for the purpose of holding a mid-year review and goal-setting session. A copy of the agenda is attached for your review and information.

COUNTY MANAGERS COMMENTS/RECOMMENDATION:

Attachments ____X_ Agenda Item 14

Yes

___

No

MaconCountyBoardofCommissioners January25,20149:00A.M. WorkSessionAgenda


9:009:10 9:109:30 Commission) 9:3010:00 MidYearFinancialReview(LoriHall,DirectorofFinance) WelcomeChairman(KevinCorbin,Chairman) 2013YearinReview(TBD,TommyJenkins,DirectorofEconomicDevelopment

10:0010:10 ProposedBudgetCalendarforFY2014/2015(DerekRoland,CountyManager)

BudgetChallengesandGoalsforFY2015
10:1010:20 NCACClegislativegoals(RonnieBeale,KevinCorbin) 10:2010:45 TaxRevaluationupdate/Collections(RichardLightner,DirectorofMaconCountyTax Department) UpdateonRevaluation Collectionofoutstandingtaxbills

10:4511:10 PublicSafety(SheriffRobbieHolland,DavidKey) Futureprojectsandneeds

11:1011:35 PublicSchools(Dr.ChrisBaldwin,SuperintendentofMaconCountySchoolSystem) MaconCountySchoolNeedsAssessment 11:3512:00 NCFAST(JaneKimsey,DirectorofSocialServices) 12:0012:15 ITSANSystem(AndyMuncey,DirectorofInformationTechnology) 12:1512:25 GoalsandexpectationsforFY2014/2015(Whatdowewanttoaccomplish?) 12:2512:35 Wrapupandclosingcomments(KevinCorbin,Chairman) Implementationofsystemupgrade Implementationissuesassociatedwithmandate

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