Wake Forest Board of Commissioners Work SessionMeeting Agenda

August 06, 2019 at 5:30 PM

1. Presentations

1.1. Recognition of New Employees

1.2. Recognition of the Wake Forest Police Department WFPD_recognition.docx

1.3. Retiree Health Benefits for New Hires - Update retiree_benefit-summary.docxRetiree_Health_Benefits_for_New_Hires__Update__-_Presentation.pptx

1.4. Comprehensive Transportation Plan Update #3 BOC_Summary_Sheet_-_Comprehensive_Transportation_Plan_Presentation__3.docxBOC Presentation #3 - CTP.pdf

1.5. Discussion of outdoor seating and alcohol sales in the Renaissance Area Summary Sheet_ Discussion of outdoor seating and alcohol sales in the RenaissanceArea.docxRequest for change to sidewalk alcohol ordinance.pdf

1.6. Review of Brewer Circle Development Agreement. Brewer_Circle_development_agreement-summary_sheet.BOC-WS.docxBrewer Circle - Wake Forest Development Agreement(1083275.5).docxDBE Provision(2219406.1).docx

1.7. Presentation of updated Purchasing Policy (information to be posted later) Purchasing Policy Update _summary.pdfPurchase Policy_ 2019 Update.pdf

1.8. Capital Boulevard (US-1) Improvements Update and Service Road Discussion 08062019 BOC Agenda Summary.docx

2. Discussion of Monthly Financial Report1

Wake Forest Board of Commissioners Work SessionAugust 06, 2019 Page 2

3. Review of Draft Agenda for Upcoming Regular Meeting

3.1. Review of the draft agenda for the August 20, 2019 meeting. 8-20-19-draft_agenda-updated.docx

4. Other Business

5. Commissioner Reports

6. Adjournment

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-244Submitted by: Kip Padgett Submitting Department: Administration Meeting Date: August 6, 2019

SUBJECTRecognition of New Employees

Recommendation:

Item Summary:

ATTACHMENTS

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-243Submitted by: Kip Padgett Submitting Department: Administration Meeting Date: August 6, 2019

SUBJECTRecognition of the Wake Forest Police Department

Recommendation:

Item Summary:

ATTACHMENTS WFPD_recognition.docx

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Agenda Item: Recognition of the Wake Forest Police Department

Summary: Chief Donaldson with the UNC Wilmington Police Department would like to publicly thank the Chief Leonard & the Wake Forest Police Department for their support immediately following Hurricane Florence.

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-286Submitted by: Virginia Jones Submitting Department: Human Resources Meeting Date: August 6, 2019

SUBJECTRetiree Health Benefits for New Hires - Update

Recommendation:Finalize Discussion

Item Summary:

ATTACHMENTS retiree_benefit-summary.docx Retiree_Health_Benefits_for_New_Hires__Update__-_Presentation.pptx

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Agenda Item: Retiree Health Benefits for New Hires – Update

Summary: In May 2018 the Board of Commissioners voted to end retiree medical and life insurance for employees effective July 1, 2018 and later. Staff was asked to research some coverage options for those employees. This presentation provides an update.

Attachment: PowerPoint detailing options

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Retiree Health Benefitsfor New Hires: Update

P R E S E N T E D B Y

Virginia H. Jones, J.D., SHRM-SCP, SPHRHuman Resources Director

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For Employees hired beforeApril 15, 2003:

Retirees with fifteen (15) or moreyears of continuous service withthe town, the Town shall pay forthe total cost of the retiree’spremium under the Town’s grouphealth and life insurance plan.

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For Employees hired afterApril 15, 2003:

Retirees with twenty (20) ormore years of continuousservice with the town, the Townshall pay for the total cost of theretiree’s premium under theTown’s group health and lifeinsurance plan.

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For Employees Effective July 1,2018 and later:

Retirees will not have access tothe town’s group medical and lifeinsurance plans. The town willalso no longer provide MedicareSupplements or MedicarePrescription Drug Coverage forretirees who reach the age of 65.

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Option: Retiree Health SavingsPlan

• A retiree health savings plan operates just like a defined contribution plan.

• Individual accounts are managed by each participating employee.

• Pre-tax contributions are made by the employer and the employee (on a mandatory basis).

• Investment decisions are made by the employee, choosing from options the employer makes available.

• Distributions, including earning, are tax-free for reimbursement of qualifying medical expenses.

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Retiree Health Benefits for NewHires – What Have we Learned?• The Town is one of many North Carolina local governments

facing growing liability associated with the cost of retiree healthcare benefits and unfunded pension promises.

• We surveyed current and new employees in October and November 2018. We received 130 responses. Not one employee expressed any concern about the Town’s decision to end retiree health benefits for new hires effective July 1, 2018.

• We held 12 benefit focus group meetings with employees between February 26, 2019 and March 5, 2019. No one expressed any concern about the Town’s decision to end retiree health benefits.

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Retiree Health Benefits for NewHires – What Have we Learned?

(CONT.)

• The Town’s decision to end retiree health benefits for new hires effective July 1, 2018 has not affected the Town’s recruitment and selection efforts.

• The Town of Wake Forest continues to be an employer of choice in Wake County and the surrounding areas.

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Questions ?

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Optional line of text here, website and phone number if applicable

Virginia H. Jones, J.D., SHRM-SCP, SPHRHuman Resources Director

919-435-9491

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-249Submitted by: Suzette Morales Submitting Department: Planning Meeting Date: August 6, 2019

SUBJECTComprehensive Transportation Plan Update #3

Recommendation:Receive as information

Item Summary:

ATTACHMENTS BOC_Summary_Sheet_-_Comprehensive_Transportation_Plan_Presentation__3.docx BOC Presentation #3 - CTP.pdf

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ITEM TITLE: Comprehensive Transportation Plan Update

ITEM SUMMARY: Presentation of the progress for the Wake Forest Comprehensive Transportation Plan, including a summary of the May 16, 2019 public meeting. What has been done so far and what are the next steps.

ATTACHMENTS: Exhibit #1 – BOC Presentation #3 - CTP

SPECIFIC ACTION REQUESTED: Receive as information

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COMPREHENSIVE TRANSPORTATION PLAN

UPDATE

TOWN OF WAKE FOREST

BOARD OF COMMISSIONERS BRIEFINGAUGUST 6, 2019

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WHERE ARE WE

7/3/2019TOWN OF WAKE FOREST CTP 2

We are here20

MAY 21 PUBLIC MEETING

7/3/2019TOWN OF WAKE FOREST CTP 3

61 Paper Comments Forms received during Public Meeting

52 Comments submitted via Online Form

24 Comments posted on Mind Mixer Site

137 Total Comments

>200 Attendees

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PUBLIC MEETING SNAPSHOTS

7/3/2019TOWN OF WAKE FOREST CTP 4

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PUBLIC MEETING SNAPSHOTS

7/3/2019TOWN OF WAKE FOREST CTP 5

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LOCATIONS MENTIONED IN COMMENTS

7/3/2019TOWN OF WAKE FOREST CTP 6

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MAJOR COMMENT TOPICS

Foundation Drive Extension

One-Way Loop

Rogers Road

N. Main Street

Ligon Mill

NC 98

Transit Loop

Greenways / Multi-use paths

7/3/2019TOWN OF WAKE FOREST CTP 7

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FOUNDATION DRIVE EXTENSION

7/3/2019TOWN OF WAKE FOREST CTP 8

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THE ONE-WAY LOOP PROPOSAL

7/3/2019TOWN OF WAKE FOREST CTP 9

Recommendation

This project stays in the list of “special recommendations” as an improvement which needs further study.

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STORY MAPS

7/3/2019TOWN OF WAKE FOREST CTP 10

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NEXT STEPS

Draft report early August

Final Steering Committee meeting late August

Final presentation to Board in September

Final report after Board presentation

Project Complete end of September

7/3/2019TOWN OF WAKE FOREST CTP 11

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-272Submitted by: Lisa Hayes Submitting Department: Downtown Development Meeting Date: August 6, 2019

SUBJECTDiscussion of outdoor seating and alcohol sales in the Renaissance Area

Recommendation:Board recommendation on pursuance of a draft ordinance

Item Summary:

ATTACHMENTS Summary Sheet_ Discussion of outdoor seating and alcohol sales in the Renaissance Area.docx Request for change to sidewalk alcohol ordinance.pdf

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Discussion of outdoor seating and alcohol sales in the Renaissance Area.

Item Summary:

Staff received a copy of the attached letter requesting outdoor seating and sales in the Renaissance Area. This request would require an ordinance change to allow downtown establishments to sell alcoholic beverages to patrons to consume in designated seating areas adjacent to downtown businesses.

Staff is sharing this request with the Board of Commissioners to gauge interest in drafting and pursuing an ordinance change relative to the Renaissance Area.

Attachments: Letter received March 20, 2019 from Amy Burkhardt, Unwined on White

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-276Submitted by: Chip Russell Submitting Department: Planning Meeting Date: August 6, 2019

SUBJECTReview of Brewer Circle Development Agreement.

Recommendation:Consensus on whether or not to include the DBE Provision in the development agreement

Item Summary:

ATTACHMENTS Brewer_Circle_development_agreement-summary_sheet.BOC-WS.docx Brewer Circle - Wake Forest Development Agreement(1083275.5).docx DBE Provision(2219406.1).docx

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Agenda Item: Review of the Brewer Circle Development Agreement with DRCW Investments, LLC.

Summary: The Town Attorney has prepared an optional section to the development agreement which addresses utilizing DBE’s. DRCW Investments, LLC has no issue with including this section as written. The Town Attorney and staff need direction from the Board of Commissioners on whether to include the section in the development agreement.

Attachments: Draft development agreement, optional DBE section.

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Prepared by and after recording return to:Eric A. VernonWyrick Robbins Yates & Ponton LLP4101 Lake Boone Trail, Suite 300Raleigh, NC 27607

STATE OF NORTH CAROLINA

WAKE COUNTY

BREWER CIRCLE

DEVELOPMENT AGREEMENT

This Development Agreement (the “Agreement”) is entered into as of ______, 2019, by and between the Town of Wake Forest, a body corporate and politic located in the County of Wake, State of North Carolina (the “Town”), and DRCW Investments, LLC, a North Carolina limited liability company (the “Developer”).

WHEREAS, Developer is under contract to purchase multiple tracts of land comprising approximately ____ acres, more or less, within the planning jurisdiction of the Town, as more particularly described on the attached Exhibit A (collectively, the “Property”);

WHEREAS, Developer submitted a Subdivision Master Plan, dated _______ (the “Master Plan”), a copy of which is attached hereto as Exhibit B, authorizing development of the Property as a single-family residential subdivision containing up to eleven (11) residences (each a “Home” and collectively, the “Homes”), together with supporting public and private infrastructure, including, without limitation, streets, sidewalks, water and sewer lines, storm drainage improvements, and other facilities (the “Project”) [reference hereinafter to the “Project” shall be deemed to include reference to the “Property”];

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WHEREAS, the Project will offer numerous benefits to the Town, including, without limitation, providing safe and affordable housing options to households with a median household income in Wake County;

WHEREAS, the Town has identified a need for more affordable housing options and therefore desires to support the Project by reimbursing certain application fees and reimbursing a portion of the costs for constructing the Infrastructure Improvements, as defined herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the benefits that will accrue to both parties from the development of the Project within the corporate limits of the Town, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

ARTICLE IDEFINITIONS

Section 1.1 Definitions. Whenever used in this Agreement, the following terms shall have the definitions indicated as set forth in this section.

(a) “Developer” means DRCW Investments, LLC, a North Carolina limited liability company, and its officers, employees, successors, assigns, and successors in title.

(b) “Infrastructure” means all infrastructure necessary to serve the Property and installed in accordance with the Standard Specifications, including, without limitation, water mains, valves, fittings, fire hydrants, service connections, service lines, shutoffs, meter boxes, manholes, laterals, roadways, streets, curbs, gutters, sidewalks, storm drainage facilities, and storm water retention facilities.

(c) “Laws” means all ordinances, resolutions, regulations, comprehensive plans, land development regulations, policies, and rules adopted by the Town affecting the development of the Property, including, without limitation, all laws governing permitted uses of the Property, density, design, and improvements.

(d) “Standard Specifications” means the standards and specifications applicable to the development of the Project and the Infrastructure and all development documents necessary for approval for the Project, including, without limitation, all standards and conditions set forth in any zoning approvals, permits, site plans, subdivision plat, and construction drawings required by the State of North Carolina, Wake County, City of Raleigh Public Utilities Department, and/or the Town.

(e) “Town” means the Town of Wake Forest, a municipal corporation existing under the laws of the State of North Carolina and its officers, employees, successors, assigns, and successors in title.

ARTICLE IIGENERAL

Section 2.1 Development Schedule. Developer shall develop the Project in accordance with the development schedule, attached hereto as Exhibit C (the “Development Schedule”).

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Section 2.2 Affordability. The Homes shall be designed and constructed to provide affordable housing options to homebuyers earning 80% to 120% of the Area Median Income (AMI) for Wake County (each, a “Qualified Homebuyer” and collectively, the “Qualified Homebuyers”), as defined by the U.S. Department of Housing and Urban Development (HUD). Each Home will be listed for sale at an initial market value between One Hundred Eighty Thousand Dollars ($180,000.00) and Two Hundred Twenty Thousand Dollars ($220,000.00) (each Home price, a “Target Price” and collectively, the “Target Price Range”). The Target Price will be based on the selected floor plan and use of standard materials (the “Plans and Specifications”). Upon completion of the Plans and Specifications by the Developer, the Plans and Specifications shall be presented to the Town for approval, such approval not to be unreasonably withheld or delayed. The Target Price will also include any appliances, including but not limited to, refrigerator, stove, oven, microwave, and dishwasher. Any modifications or additions to the Plans and Specifications or standard appliances must first be approved in writing by the Town, such approval not to be unreasonably withheld or delayed.

Section 2.3 Target Price. Developer shall not list any of the Homes in the Project for sale without the Town’s prior written consent. Developer shall provide the Town with a list of the initial Target Price for each floor plan prior to listing any Home in the Project for sale. If at any time during the Term unforeseen circumstances beyond Developer’s control result in a material increase in the costs set out in the Cost Schedule, attached hereto as Exhibit D, the parties agree to negotiate in good faith to amend the Target Price Range to address such unforeseen cost increase.

Section 2.4 Homebuyer Upgrades. Each homebuyer will be given the option to make certain modifications or improvements to the Plans and Specifications (“Homebuyer Upgrades”), which may increase the final purchase price of the Home. Any Homebuyer Upgrades must first be approved in writing by the Town, such approval not to be unreasonably withheld or delayed.

Section 2.5 Settlement Statement. Developer shall not close on the sale of a Home without the Town’s prior written approval of the settlement statement prepared for each closing.Not less than ten (10) business days prior to closing the purchase of a Home, Developer shall provide a settlement statement to the Town for approval, such approval not to be unreasonably withheld or delayed. If a Home’s final purchase price exceeds the initial Target Price, the Town and Developer shall split, fifty-fifty, any amounts in excess of the initial Target Price. Notwithstanding the foregoing, the Town will not be entitled to any funds in excess of the initialTarget Price that directly result from any Homebuyer Upgrades to a Home.

Section 2.6 Property Maintenance. Developer will maintain the Property and any Infrastructure Improvements until all Homes are sold.

Section 2.7 Modification to Project. Upon a change in the size or scope of the Project that makes it impossible or materially impracticable for either party to continue to perform its obligations under this Agreement, the parties agree to negotiate in good faith to amend this Agreement to address the change in the size or scope of the Project.

Section 2.8 Term. This Agreement shall be in effect until all Homes are sold and will continue for the duration of the Developer’s warranty on the Homes (the “Term”), unless otherwise amended by the parties in accordance with the terms hereof.

ARTICLE IIIDEVELOPMENT STANDARDS

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Section 3.1 Permits and Approvals. Developer shall obtain (without limitation) the following permits, as applicable, to develop the Project; provided that this Agreement’s failure to address a particular permit, condition, term, or restriction does not relieve Developer of the necessity of complying with the law governing their permitting requirements, conditions, terms, or restrictions:

(a) Subdivision Master Plan;(b) Subdivision Construction Plan;(c) Final Plat;(d) Soil and erosion permits;(e) Right of way encroachments and driveway permits;(f) Permits for water and sewer lines and extensions;(g) Building permits; (h) Infrastructure inspection fees; and(i) Certificates of Occupancy.

The Town shall be responsible for obtaining Conditional Rezoning. Notwithstanding the foregoing, Developer shall cooperate in good faith with the Town in obtaining such rezoning.

Section 3.2 Fees Reimbursed. In consideration for the public benefits that the Project will provide the Town, the Town agrees to reimburse any (i) submittal fees for rezoning, subdivision review, or site plan review, (ii) fire protection facility fees, and (iii) parks and recreation facility fees that are required to complete the Project. For the purposes of clarity, the foregoing reimbursement does not include fees for any building permits, soil and erosion permits,or permits for water and sewer lines and extensions.

Section 3.3 Town’s Cooperation. Subject to compliance by Developer with the Town’s applicable development review and approval requirements, the Town agrees to cooperate in good faith with Developer and Developer’s employees, agents, contractors, and subcontractors in obtaining the permits and approvals specified in Section 3.1 and in developing the Project under this Agreement. Nothing herein is intended to waive, remove or compromise the Town’s development review or approval obligations.

Section 3.4 Development Standards. The effectiveness of this Agreement is contingent upon the approval of the Conditional Rezoning and Master Plan and nothing in this Agreement shall abridge or terminate the rights or obligations of Developer or the Town as set forth in the approved Conditional Rezoning and Master Plan, which shall be deemed ratified, adopted, and incorporated herein by reference upon approval as if fully set forth in this Agreement. In addition, the Homes shall be designed and built in conformance with the following sections (as replaced or revised from time to time) of the Town of Wake Forest Unified Development Ordinance: Section 5.5.2 Roofs and Eaves, Parts A, B, and C; Section 5.5.3 Building Entrances, Parts A and B; Section 5.5.5 Façade Design/Permeability/Transparency; and, Section 5.5.6 Materials, Parts A and B.

Section 3.5 Home Warranty. Developer shall provide the homebuyer with (i) all manufacturer’s and supplier’s written guarantees covering materials and equipment furnished

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under the construction of the Homes; (ii) a warranty for a period of one (1) year on all workmanship for each Home, including, but not limited to, roof work (sheathing, shingling and flashing) from the date of the Certificate of Occupancy; and (iii) a 2/10 structural warranty covering appliances and systems through a period of two (2) years, including, but not limited to, HVAC, plumbing, and mechanical, as well as structural defects through a period of ten (10) years. Developer shallassist all homebuyers with any warranty claims.

Section 3.6 Insulation. Developer is a covered entity under the Federal Trade Commission’s Trade Regulation Rule on labeling and advertising of home insulation (16 CFR, Part 460). In accordance with 16 CFR § 460.16, Developer shall include in every Home sales contract, the type, thickness, and R-value of the insulation that will be installed in each part of the Home.

ARTICLE IVINFRASTRUCTURE

Section 4.1 Infrastructure Improvements. In consideration for the public benefits that the Project will provide the Town, the Town shall reimburse Developer the costs associated with completing the Road Improvement, Sidewalk Improvements, and the Water and Sewer Improvements (collectively, the “Infrastructure Improvements”), subject to certain limitations and parameters outlined in this Article.

(a) Road Improvement - Developer agrees to design, engineer and construct the roadway known as “Brewer Circle” (the “Road Improvement”). Developer shall obtain all applicable permits and approvals necessary to install the Road Improvement. So long as the Road Improvement is constructed in accordance with applicable Standard Specifications, the Road Improvement shall be accepted and maintained by the Town or the North Carolina Department of Transportation, as applicable. Construction of the Road Improvement shall be completed within _____ (__) months of the issuance of all applicable permits and approvals necessary to construct the Road Improvement, provided that the construction timeline may be extended due to inclement weather delays.

(b) Sidewalk, Curb and Gutter and Storm Drain Improvements - Developer agrees to design, engineer and construct sidewalk(s), curb(s) and gutter(s), as well as storm drain(s) to serve the Project (the “Sidewalk Improvements”). Developer shall obtain all applicable permits and approvals necessary to install the Sidewalk Improvements, and the Town agrees to assist Developer in obtaining all permits and approvals from the applicable governmental authorities to install the improvements. The Sidewalk Improvements shall include improvements typical for this type of project and shall be constructed in accordance with the standards outlined in the Town of Wake Forest Unified Development Ordinance.

(c) Water and Sewer Improvements - Developer agrees to pay for the design, engineering and construction of the water and sewer lines as well as any drainage improvements required for completion of the Project (the “Water and Sewer Improvements”). Developer shall obtain all applicable permits and approvals necessary to install the Water and Sewer Improvements, and the Town agrees to assist Developer in

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obtaining all permits and approvals from the applicable governmental authorities to install the improvements. All Water and Sewer Improvements constructed in accordance with the Standard Specifications shall be accepted and maintained by the Town or the City of Raleigh (as may be required by the Town’s utility agreement with the City of Raleigh).

Section 4.2 Reimbursement. The Town shall reimburse the Developer for the Infrastructure Improvements up to a maximum of Three Hundred Thousand Dollars ($300,000.00)(the “Reimbursement Amount”), and Developer shall be responsible for all costs that exceed the Reimbursement Amount. The Reimbursement Amount is subject to excess Target Price refunds payable to the Town, as described in Section 2.5. In addition, in the event of unforeseen circumstances beyond Developer’s control that materially increase the cost of completing the Project, including, but not limited to, materials price increases or unforeseen construction standards that directly increase costs, the parties agree to negotiate in good faith to amend the Reimbursement Amount to address the unforeseen cost increase. The Developer and Town understand and agree that any increase in the Reimbursement Amount is subject to the discretion and approval of the Town’s Board of Commissioners to appropriate any additional funds to the Project.

Section 4.3 Progress Payments. Based upon Applications for Payment submitted to [the Developer’s architect/engineer] by the Developer and Certificates for Payment issued by the architect/engineer, the Town shall make progress payments up to the maximum of the Reimbursement Amount to the Developer as provided herein.

(a) The period covered by each Application for Payment shall be one calendar month ending on the last day of the month.

(b) Provided that an Application for Payment is received by the architect/engineer not later than the 1st day of a month, the Town shall make payment to the Developer not later than the tenth day of the current month.

(c) Each Application for Payment shall be based on the most recent schedule of values submitted by the Developer. The schedule of values shall allocate the entire Reimbursement Amount among the various portions of the Infrastructure Improvements. The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the architect/engineer may require. This schedule, unless objected to by the architect/engineer, shall be used as a basis for reviewing the Developer’s Application for Payment.

(d) Applications for Payment shall indicate the percentage of completion of each portion of the Infrastructure Improvements as of the end of the period covered by the Application for Payment.

(e) The amount of each progress payment shall be computed as follows:

i. Take that portion of the Reimbursement Amount properly allocable to completed Infrastructure Improvements as determined by multiplying the

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percentage completion of each portion of the Infrastructure Improvements by the share of the Reimbursement Amount allocated to that portion of the Infrastructure Improvements in the schedule of values, less retainage of five percent (5%) as outlined in Section 4.4 below;

ii. Subtract the aggregate of previous payments made by the Town; and

iii. Subtract amounts, if any, for which the architect/engineer has withheld or nullified a Certificate for Payment.

Section 4.4 Retainage. There shall be deducted and retained from each progress payment, retainage of five percent (5%) until the Project is substantially complete. Upon substantial completion of the Project, retainage shall be distributed to the Developer, less any amount equal to one hundred fifty percent (150%) of the value of all items included in the final list of items to be completed or corrected which amount shall be finally distributed to Developeronce a final Certificate of Payment has been issued by the architect/engineer and upon full compliance with this Agreement, except for any requirements which extend beyond final payment. This retainage is in addition to any other right to withhold or set off payments to Developer.

Section 4.5 Timing. All Infrastructure Improvements contemplated by this Agreement to be constructed by Developer shall be completed in a reasonable time and in a manner to avoid substantially delaying the Development Schedule. Any breach of this Agreement by the Town shall not affect Developer’s authorization or obligation to develop the Project in accordance with the Development Schedule. In the event of such a default by the Town, the Project shall be deemed to be in compliance with the Town's adequate public facilities policies, except to the extent such policies require temporary measures to address issues of public health or safety.

Section 4.6 Bond Waiver. In consideration of the public benefits that the Infrastructure Improvements shall provide the Town, Town agrees to waive any payment and performance bonds covering construction of the Infrastructure Improvements.

ARTICLE VINSURANCE

Section 5.1 In General. Developer shall maintain insurance policies at all times with minimum limits as follows:

Coverage Minimum Limits Workers’ Compensation Statutory LimitsEmployers’ Liability $1,000,000General Liability $1,000,000Automobile Liability $500,000Professional Liability (E & O) $1,000,000 (If Required)

Developer shall provide the Town with a Certificate of Insurance for review prior to the

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issuance of any contract or Purchase Order. All Certificates of Insurance will require thirty (30) days written notice by the insurer or Developer’s agent in the event of cancellation, reduction or other modifications of coverage. In addition to the notice requirement above, Developer shall provide the Town with immediate written notice of cancellation, reduction, or other modification of coverage of insurance. Upon failure of the Developer to provide such notice, Developer assumes sole responsibility for all losses incurred by the Town for which insurance would have provided coverage. The Town shall be listed as certificate holder and named as an additional insured under General Liability. It is required that coverage be placed with “A” rated insurance companies acceptable to the Town. Failure to maintain the required insurance in force may be cause for contract termination. In the event that Developer fails to maintain and keep in force the insurance herein required, the Town has the right to cancel and terminate the contract without notice.Developer shall provide proof that a Drug-Free Workplace Program is in place and that drivers meet DOT/CDL licensing requirements, if requested.

Section 5.2 Performance and Payment Bonds. Developer shall provide the Town with both performance and payment bonds each in an amount equal to the Reimbursement Amount. The corporate surety furnishing the bonds shall be authorized to do business in the State of North Carolina.

ARTICLE VIMISCELLANEOUS

Section 6.1 Indemnification. Developer agrees to defend, indemnify, and hold harmless the Town for all loss, liability, claims or expense (including reasonable attorney’s fees) arising from bodily injury, including death or property damage, to any person or persons caused in whole or in part by the negligence or misconduct of the Developer, except to the extent same are caused by the negligence or willful misconduct of the Town. It is the intent of this Section to require Developer to indemnify the Town to the extent permitted under North Carolina law.

Section 6.2 Default by Developer. In addition to other remedies provided for in this Agreement or by law or equity, any material breach which remains uncured for a period of thirty (30) days after receipt of written notice from the Town of non-compliance shall entitle the Town to (i) require specific performance of Developer’s obligations thereunder and recover such damages as to which the Town may be entitled, plus reasonable attorneys’ fees and costs of any such litigation; or (ii) recover any and all progress payments that have been made to the Developer from the Reimbursement Amount, plus reasonable attorneys’ fees and costs of any such litigation. Provided however, in the event a default cannot be practically cured within thirty (30) days, Developer shall have a reasonable period to cure the default, not to exceed ninety (90) days, as long as Developer has commenced to cure the default and proceeds diligently and in good faith to pursue a cure. Furthermore, the Town may halt and enjoin further development activities on the Property by withholding the issuance of permits, map recordings, and/or utility extension or connections for any period of time within which the Development remains in material breach which is uncured for a period of thirty (30) days after receipt of written notice of non-compliance from the Town. Any failure of the Town to exercise any right or remedy as provided for herein shall not be deemed a waiver of the Town’s right to strictly enforce Developer’s obligations in any other instance.

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Section 6.3 Default by Town. In the event of a default by the Town in performance of its obligations hereunder, Developer’s sole relief and remedy shall be limited to a suit for specific performance of this Agreement. No monetary damages or costs shall be recoverable from theTown. Notwithstanding any provisions herein to the contrary, the Town may terminate all its obligations hereunder by not appropriating sufficient funds to make the progress payments coming due under the terms of this Agreement. Such failure to appropriate shall constitute an Event of Default.

NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED OR INTERPRETED AS CREATING A PLEDGE OF THE FAITH AND CREDIT OF THE TOWNWITHIN THE MEANING OF ANY CONSTITUTIONAL DEBT LIMITATION. NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED OR INTERPRETED AS CREATING A DELEGATION OF GOVERNMENTAL POWERS NOR AS A DONATION BY OR A LENDING OF THE CREDIT OF THE TOWN WITHIN THE MEANING OF THE CONSTITUTION OF THE STATE OF NORTH CAROLINA. THIS AGREEMENT SHALL NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE TOWN TO MAKE ANY PAYMENTS BEYOND THOSE APPROPRIATED IN THE SOLE DISCRETION OF THE TOWN FOR ANY FISCAL YEAR IN WHICH THIS AGREEMENT IS IN EFFECT; PROVIDED, HOWEVER, ANY FAILURE OR REFUSAL BY THE TOWN TO APPROPRIATE FUNDS, WHICH RESULTS IN THE FAILURE BY THE TOWN TO MAKE ANY PAYMENT COMING DUE HEREUNDER, WILL IN NO WAY OBVIATE THE OCCURRENCE OF THE EVENT OF DEFAULT RESULTING FROM SUCH NONPAYMENT. NO DEFICIENCY JUDGMENT MAY BE RENDERED AGAINST THE TOWN IN ANY ACTION FOR BREACH OF A CONTRACTUAL OBLIGATION UNDER THIS AGREEMENT, AND THE TAXING POWER OF THE TOWN IS NOT AND MAY NOT BE PLEDGED DIRECTLY OR INDIRECTLY OR CONTINGENTLY TO SECURE ANY MONIES DUE UNDER THIS AGREEMENT.

No provision of this Agreement shall be construed to pledge or create a lien on any class or source of the Town’s monies. To the extent of any conflict between this Section and any other provision of this Agreement, this Section shall take priority.

Section 6.4 Force Majeure. Notwithstanding anything to the contrary herein, neither party shall be liable to the other for any failure to perform under this Agreement as a result of a force majeure, including, without limitation, acts of governmental authorities (including, without limitation, the denial of permits which Developer or the Town has pursued in good faith),embargoes, fire, flood, hurricanes, tornadoes, explosions, acts of God or a public enemy, strikes, labor disputes, vandalism, civil riots, or acts of terrorism; provided, such party (i) shall notify the other party promptly if the performance of any duty or obligation required under this Agreement will be delayed or prevented by a force majeure; and (ii) shall diligently and in good faith act to the extent within its power to remedy the circumstances affecting its performance.

Section 6.5 Consideration; Authority to Enter Agreement. The parties hereto agree that this Agreement is mutually beneficial in that it provides for systemic extension of municipal improvements while at the same time creating affordable housing options to households with a median income in Wake County. The parties acknowledge that these mutual benefits are sufficient

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to constitute good and valuable consideration in support of this contractual agreement. This Agreement was approved by the Town at an open meeting on ________, 2019 following any notice required by applicable law, if any. Such approval by the Town shall be deemed to satisfy any requirements for Town approval of any item contained herein whether or not specifically stated in such approval.

Section 6.6 Written Consents from Town. Where this Agreement refers to written approvals or consents to be given by the Town and the person or position that may give consent is not identified, the authority to give such approvals shall be deemed to be with the Town Manager or his designee and Developer may rely on such authority and approvals to no detriment of its own. An approval required by this Agreement shall not be effective unless given in writing. Unless provided otherwise herein, the written approvals or consents required by the Town shall not be unreasonably withheld, conditioned, or delayed.

Section 6.7 No Waiver of Governmental Authority or Discretion. Nothing in this Agreement shall be construed to bind, estop, direct, limit, or impair the future regulatory, legislative, or governmental discretion of the Wake Forest Board of Commissioners in a manner not permitted by law. The Town shall incur no liability to the Developer for any losses or damages it may incur as a result of or in connection with the Town’s exercise or performance of its regulatory, legislative, or governmental powers or functions, or any judicial determination regarding the same. Nothing in this Agreement shall be construed as a waiver or release of Developer’s obligations to comply with any permits.

Section 6.8 Relationship of the Parties. The Developer shall operate as an independent contractor, and the Town shall not be responsible for any of the Developer’s acts or omissions. The Developer shall not be treated as an employee with respect to the services performed hereunder for federal or state tax, unemployment or workers’ compensation purposes. The Developer agrees that neither federal, nor state, nor shall payroll tax of any kind be withheld or paid by the Town on behalf of the Developer or the employees of the Developer. The Developer further agrees that the Developer is fully responsible for the payment of any and all taxes arising from the payment of monies under this Agreement. The Developer shall not be treated as an employee with respect to the services performed hereunder for purposes of eligibility for, or participation in, any employee pension, health, or other fringe benefit plan of the Town. The Town shall not be liable to the Developer for any expenses paid or incurred by the Developer unless otherwise agreed in writing. The Developer shall supply, at its sole expense, all equipment, tools, materials, and supplies required to provide the contracted services unless otherwise agreed in writing. The Developer shall comply with all federal, state and local laws regarding business permits, certificates and licenses that may be required to carry out the services to be performed under this Agreement. The Developer shall insure that all personnel engaged in work under this Agreement shall be fully qualified and shall be authorized under state and local law to perform the services under this Agreement.

Section 6.9 Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the matters covered herein and supersedes any prior negotiations, understandings, or agreements with respect to the matters contemplated hereby.

Section 6.10 Amendment. Except as otherwise provided herein, this Agreement may not be amended or terminated except by written instrument signed by both parties.

Section 6.11 Successors and Assigns. All of the provisions of this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective permitted successors

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006461.360-1083275v5 11

and assigns. Developer may not assign its rights or obligations under this Agreement without the express written approval of the Town, which approval shall not be unreasonably withheld so long as the assignee has the same resource availability and qualifications as Developer. Notwithstanding the foregoing, the Town acknowledges and agrees that Developer shall have the right to engage and utilize other parties not affiliated with Developer to develop the Project, and the rights and obligations of Developer under this Agreement shall inure to the benefit of such parties so long as such parties are acting on behalf of and with the consent of Developer and provided that Developer remains liable to the Town for its obligations under this Agreement.

Section 6.12 Enforceability. The enforceability and validity of this Agreement, in whole or in part, shall not be affected by the unenforceability or invalidity of any particular provision of this Agreement.

Section 6.13 Applicable Laws. This Agreement shall be construed under the laws of the State of North Carolina.

Section 6.14 Preambles. The preamble and recitals to this Agreement are part of the agreement between the parties and shall be binding upon the parties in accordance with their terms.

Section 6.15 Applicability of Agreement. This Agreement shall be applicable to the Property and Master Plan as approved by the Town and as the same shall thereafter be amended or modified by agreement of the then-owner(s)/developer(s) of the Property and the Town in writing.

(Next Page is Signature Page)

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IN WITNESS WHEREOF, the Town and Developer have caused this Agreement to be duly executed and sealed pursuant to proper authority as of the day and year first above written.

ATTEST:

By:__________________, Town Clerk

TOWN OF WAKE FOREST, a North Carolina municipal corporation

By:Vivian Jones, Mayor

NORTH CAROLINA

WAKE COUNTY

I certify that __________________, Town Clerk of the Town of Wake Forest, personally appeared before me this day and certified to me under oath or by affirmation that (s)he is not a named party to the foregoing document, has no interest in the transaction, signed the foregoing document as a subscribing witness, and either (i) witnessed Vivian Jones sign the foregoing document, or (ii) witnessed the principal acknowledge the principal’s signature on the already-signed document.

__________________, 2019

[Notary’s signature as name appears on seal]

[Notary’s printed name as name appears on seal]

My commission expires:

[Affix Notary Seal in Space Above]

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006461.360-1083275v5 13

DRCW INVESTMENTS, LLC, a North Carolina limited liability company

BY:

NAME:

TITLE:

STATE OF NORTH CAROLINA

WAKE COUNTY

I certify that ____________________________ personally appeared before me this day and acknowledged that (s)he is Manager of DRCW INVESTMENTS, LLC, a North Carolina limited liability company, and that (s)he, in such capacity and being authorized to do so, executed the foregoing on behalf of said limited liability company for the purposes stated therein.

__________________, 2019

[Notary’s signature as name appears on seal]

[Notary’s printed name as name appears on seal]

My commission expires:[Affix Notary Seal in Space Above]

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6461.360-1083275 v3

List of Exhibits

EXHIBITS

Exhibit A Property DescriptionExhibit B Subdivision Master PlanExhibit CExhibit D

Development ScheduleCost Schedule

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6461.360-1083275 v3

EXHIBIT A

PROPERTY DESCRIPTION

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EXHIBIT B

SUBDIVISION MASTER PLAN

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6461.360-1083275 v3

EXHIBIT C

DEVELOPMENT SCHEDULE

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EXHIBIT D

COST SCHEDULE

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Optional Insert in Article III (Development Standards)

Section 3.7 Disadvantaged Business Enterprise(s). To the extent Disadvantaged Business Enterprise(s) (“DBE”) become known and available to Developer, Developer shall make reasonable efforts to contract with such businesses for the development of the Project.

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-281Submitted by: Aileen Staples Submitting Department: Finance Meeting Date: August 6, 2019

SUBJECTPresentation of updated Purchasing Policy (information to be posted later)

Recommendation:

Item Summary:

ATTACHMENTS Purchasing Policy Update _summary.pdf Purchase Policy_ 2019 Update.pdf

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Presentation of Updated Purchasing Policy

The current policy was approved by the Board of Commissioners in October 2007. Several statutory changes have occurred along with changes in technology and growth in our organization which necessitate updating the town’s policy.

Staff will present the highlighted changes and be available to answer any questions. The updated policy is attached for your review.

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Purchasing and Warehouse Policy

UPDATED JULY 2019

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Table of Contents:

Section 1: Purpose and General Guidelines 4 I. Purpose 4 II. General Guidelines 4 III. Public Interest 7 IV. Types of Procurement Services 11 V. New Vendors 14

Section 2: Purchasing Procedures 15 I. General Procedure 15 II. Petty Cash 17 III. Vendors and Selection 17 IV. Exceptions to the Purchase Order Procedure 18 V. Requisitions 19 VI. Purchase Orders 20 VII. Change Orders 22 VIII. Quotes 23

Section 3: Procurement Cards (P-Cards) 24 Section 4: Competitive Bids and Proposals 27

I. Purchase of Supplies, Materials and Equipment 27 II. Construction and Repairs 29 III. Specifications 33 IV. Bidding Expenditures 33 V. Dispute Resolution 34

Section 5: Uniform Guidance Procurement Policy for Using Federal Funds 34 Section 6: Delivery and Performance 34

I. Complete Delivery 34 II. Partial Delivery 35 III. Non-performance 35 IV. Rejection 35 V. Damaged Goods 35

Section 7: Warehouse Policy 35 I. Purpose 35 II. Issuing of Stock 36 III. Receiving Deliveries 36 IV. Returning Stock 37 V. New Items to Stock 38 VI. Obsolete Stock 38 VII. Scrap Material 38 VIII. Frequently Used Items 38 IX. Surplus Items for Public Sale 38 X. Access to Warehouse 39

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XI. After Hours Emergency 39 XII. After Hours Scheduled Work 40 XIII. Contractors and/or Storm Relief Contractors 40 XIV. Yard Organization 40 XV. OSHA Compliance 40 XVI. Uniforms 41

APPENDIX I: SAMPLES OF NECESSARY FORMS 42

Glossary 55

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Section 1: Purpose and General Guidelines

I. Purpose This policy outlines the responsibilities and procedures governing purchases of goods, equipment and services for the Town of Wake Forest. The policies and procedures provided ensure the fair and equitable treatment for all parties involved in public purchasing is demonstrated while following all applicable statutory requirements. Serving as a resource for all town employees, this policy outlines the procedures to follow when securing goods, equipment and services. Compliance with the following general principles is required:

● Comply with all federal, state and local legal requirements governing public purchasing. ● Ensure the town receives maximum value for the money that it spends by awarding

purchase orders to the lowest responsible bidder. ● Uphold the trust of public purchasing through informed and fair buying practices and

strict ethical standards. ● Ensure vendors who wish to do business with the town are treated fairly and equally. ● Search for new vendors and products that will conserve town resources as well as

improve departmental efficiency. ● Promote positive and effective vendor relations. ● Dispose of all obsolete, inactive, and scrap material, vehicles and equipment. ● Monitor available funds for each department to ensure money is available for requested

goods and services.

Provide departments with expected quantity and quality of materials, equipment and services in a timely manner.

II. General Guidelines Legal Authority and N.C. General Statutes Statutory provisions and related regulations covering Public Purchasing by local governments are included primarily within North Carolina General Statutes, Chapter 143. Multiple sections cover the laws, but predominantly purchasing is found from N. C. G. S. §143-129 through 143-135.

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N.C. General Statute Statute Topic

G.S. 143-128 Requirements for certain building contracts

G.S. 143-129 Formal Bidding: Purchase of apparatus, supplies, materials, or equipment costing $90,000 or more and construction or repair work costing $500,000 or more.

G.S. 143-131 Informal Bidding: Purchase of apparatus, supplies, materials, or equipment costing more than $30,000 but less than $90,000; and Construction or repair contracts costing more than $30,000 but less than $500,000.

G.S. 143-135 Limitation of Application of Article

G.S. 14-234 No public officer or employee may solicit or receive any gift, favor, reward, service, or promise of reward, including a promise of future employment, in exchange for recommending, influencing, or attempting to influence the award of a contract by the public agency he/she serves.

Other Guidance Topic

Resolution 90-32 Resolution to establish goals for minority businesses in Town construction contracts.

Uniform Guidance Procurement Requirements

Rules that set uniform standards for the award and expenditure of federal financial assistance (grants and loans).

Other specific duties, authorities, and responsibilities of officers and employees are comprised of N. C. G. S. §14, 44A, 160A, and 159; and through the Local Government Budget and Fiscal Control Act. These statutes grant authority to local governments to purchase necessary goods, services, and materials as well as enter into contracts as needed. The Board of Commissioners has full budget and signing authority for all procurement of contracts that are included in the formal bid threshold as outlined in N. C. G. S. §143-129. The Town Manager or his designee has signing authority for all contracts included in the informal bid threshold as outlined by N. C. G. S. §143-131. All statutory requirements summarized in N. C. G. S. §143 and the Local Government Budget and Fiscal Control Act for local government bidding and purchasing must be followed.

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Approval Authority

Subject Approval Authority

Formal Purchase Contract (Over $125,000) Board of Commissioners

Sole Source Exception Board of Commissioners

Formal Construction Repair Contracts ($500,000 or more)

Board of Commissioners

Informal Bid Contract Purchase of apparatus, supplies, materials, or equipment costing more than $30,000 but less than $90,000

Town Manager or Designee

Exemption from QBS procedure (under $50,000)

Town Manager or Designee

Requisitions/PO’s exceeding $2,500 Department Director or Designee

Changes, modifications, and cancellation of existing PO’s

Department Director

P-Card Receipts Supervisor and Department Director

Petty Cash forms Supervisor and/or Department Director

Exemptions to purchase order procedures Chief Financial Officer or designee

Budget Transfer/Amendments Chief Financial Officer or designee

Purchase requests after cut-off dates Town Manager or Chief Financial Officer

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Contracts Pursuant to N. C. G. S. § 160A-16, all contracts made by or on behalf of a city shall be in writing. A contract made in violation of this section shall be void and unenforceable unless it is expressly ratified by the Board of Commissioners. A contract can take several forms:

● A contract developed by the town and signed by the vendor ● A purchase order ● A contract provided by the vendor that the town signs

There are no statutes that dictate which type of contract must be used. It is preferred that the vendor sign/accept a town contract whenever possible. Any contract received by an outside vendor may be subject to review by the Town’s Attorney at the discretion of the Town Manager or Chief Financial Officer. This includes contracts of construction, repair or design up to $100,000. Authority to sign contracts The signing of a contract (as described in above section) is a legal binding agreement between the town and a vendor. The authorized agents to sign various contracts on behalf of the town are: Mayor, Mayor Pro-Tem, Town Manager, Chief Financial Officer, Assistant Finance Director, Purchasing Manager, Buyer and Senior Inventory Specialist (as deputized). A contract signed by an unauthorized agent (not listed above) will be considered null and void and the town will not be responsible for payment. Terms and Conditions The Town of Wake Forest’s Standard Terms and Conditions listed at: https://www.wakeforestnc.gov/Data/Sites/1/media/Residents/Finance/towf-standard-terms-and-conditions---final.pdf will govern all matters related to the goods and/or services provided by a vendor to the town. Additional terms and conditions stated on the cover of a town purchase order shall take precedence over any conflicting standard terms and conditions stated. Any terms and conditions not stated, but incorporated by reference therein, shall be binding only if provided or signed by the town and attached hereto. In the event that a binding, written contract signed by both the vendor and the town exists, the terms and conditions of that contract shall supersede any conflicting standard terms and conditions.

III. Public Interest Ethics The policies of the town require the utmost ethical standards in all business done by town officials and employees. This is essential to ensuring the sacred trust that the public bestows upon its government, especially when dealing with the public’s finances. Conduct of all employees during the purchasing process will support all applicable laws and policies on ethical behavior. 62

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Conflict of interest The policies of the town and N. C. G. S. §14-234 prohibit the direct or indirect financial gain to government officials and employees through business dealings or the use of confidential information. No employee may enter into purchasing contracts or use confidential information to obtain any real or apparent financial benefit. Under North Carolina law, such financial benefits or other gains are a criminal misdemeanor and a disrespectful act to the public that is being served. All conflicts of interest are to be prevented and the appearance of such conflict is to be avoided. Gifts and Favors No official or employee can engage in any transaction that limits the employee’s ability to serve the public interest with full independent judgment or causes hindrance of performance in official duties. Employees, contractors and/or vendors may not offer or receive gifts under N. C. G. S. §133-32 and other statutes. Town employees may not directly or indirectly seek or accept any gift of real financial value (i.e. money, gift cards, meals, etc. from prospective bidders) when exchange is related to his or her job. Nominal value is set by town policy as less than one-hundred dollars ($100.00). Any gifts or favors of $100 or more in value are prohibited. For further inquiries, refer to the statute. Equal Opportunity Discrimination against any person, business, or group based on race, color, sex, religion or national origin is strictly prohibited by the laws of the United States, North Carolina, and the Town of Wake Forest during the purchasing process. Purchasing programs will be conducted to prevent such bias. Minority Participation The Town of Wake Forest has adopted (by Resolution # 90-32) a 10% minority participation goal. This resolution was adopted to encourage the solicitation of minority participation in town projects. It shall be the intention of the Town of Wake Forest to solicit minority participation for the following types of contracts:

● Building construction or repair - $30,000 or above. ● General construction or repair - $30,000 or above. ● Professional service contracts - $30,000 or above. ● Service Contracts - $30,000 or more. ● On-call Engineering Contracts - $30,000 or above

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The solicitation of minority vendors for each of the above contracts shall be documented. In addition, the dollar and percentage amount shall be tracked for each qualifying project. Minority participation shall be solicited from the sending of notices to various minority plan rooms, advertisement on the State of NC Interactive Purchasing System (IPS) and direct contact with minority contractors. Although minority participation is encouraged for all town projects, the award must still be made to the lowest responsible bidder. Historically Underutilized Business Requirements (HUBSCO) In accordance with N. C. G. S. § 143-128.2 & 143-131(b), the Town of Wake Forest is required to solicit and document its efforts to obtain minority participation for formal and informal building contracts covered under the statutes. Within 30 days of a building project being completed (either by formal or informal range), the Purchasing Manager or designee is required to submit a report to the Office of Historically Underutilized Business detailing the project, the solicitation of minority participation and the amount of minority participation used for the project. Emergency Situation An emergency situation is defined as any event where the public’s health, safety, welfare and/or property are put at risk, especially during time sensitive circumstances. Generally, this may include any situation that severely hinders the ability of a department to operate and provide necessary services. This includes but is not limited to tornadoes, hurricanes, ice and snow storms, after hour power outages, and both natural and man-made disasters. Department Directors and/or the Chief Financial Officer will decide if a situation warrants an emergency situation status. Emergency situations should immediately be reported to Department Directors (or their designee). In the absence of the Department Director, the Chief Financial Officer should be notified. If a situation is deemed an emergency and circumstances warrant the need, emergency orders shall be made using P-cards or purchase orders depending on the purchase amount. The final determination will be made by the Chief Financial Officer and/or Town Manager. Planning Planning is critical for any operation to protect and maximize the use of the town finances. Careful planning mitigates any last-minute orders and supply shortages. Last minute orders can be costly while supply shortages slow production and hinder service delivery. Both are to be avoided. 64

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Local Buying The town’s intent is to purchase goods and services from vendors and contractors within town limits and surrounding areas. This requires the inclusion of local vendors and contractors in the purchasing process. However, due to the town’s responsibility to its residents and the use of public funds, value maximization for each dollar is required. The town will not make purchasing decisions solely based on vendor or contractor residence. Local vendors and contractors will be encouraged to compete in the purchasing process and will be one of the many considered during the decision process. Bid Bonds or Deposit Pursuant to N. C. G. S. § 143-129(b), construction or repair contracts of $500,000 or more require a 5% bid bond or deposit to submitted with the bid. The bid deposit may be made in the following forms: cash, cashier’s check, certified check on a bank or trust company insured by the Federal Deposit Insurance Corporation or a bid bond executed by a corporate surety licensed under the laws of North Carolina. If the bidder backs out of their bid or refuses to sign a contract, the town can retain the deposit or seek payment under the bid bond. Bid bonds are not required for purchase contracts. Performance/Payment Bonds Pursuant to N. C. G. S. § 44A-26, construction or repair contracts require performance/payment bonds of 100% of the amount bid for all projects costing $300,000 or more, or Pursuant to N. C. G. S. § 143-129(c). If it is a multi-contract project, construction or repair contracts costing $50,000 or more for each contract also require performance/payment bonds of 100% of the amount bid. These bonds are submitted after the award is made to a contractor, but before a contract is executed. The performance bonds insure that in the event of a default by the contractor, the town can look to a third party to complete the project and use the bid bond or deposit to pay to complete the project. Payment bonds provide security if a contractor does not pay a subcontractor for labor or materials. This protects the subcontractor since state law prohibits them from obtaining a lien on public property to obtain payment. Purchase contracts do not require the use of performance/payment bonds. Sales Tax The Town of Wake Forest is not exempt from paying state and local taxes. This critical information must be communicated to all vendors. Prior to beginning a project, preferably during the bidding process, the vendor will be required to submit to the Purchasing Division the North Carolina Department of Revenue’s Affidavit of Capital Improvement (Form E-589CI). Vendors who engage in a construction project with the town will be required to submit sales tax verification in conjunction with each of their invoice submissions. In addition, at the completion of the project, the vendor will be required to submit a sales tax affidavit certification that all the necessary sales taxes were collected by the General Contractor.

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There are instances where the town will make purchases of items for which it intends to resale. In these situations, the town department should provide the vendor a copy of the North Carolina Department of Revenue’s Streamlined Sales and Use Tax Agreement Certificate of Exemption (Form E-595E). The vendor WILL NOT charge the Town tax on these purchases as the tax will be collected by the town at the time of sale to the customer. IV: Types of Procurement Services A) Use of Registered Architect or Engineer

A registered architect or engineer is required for the following:

Non-structural work $300,000 or more Structural repair $135,000 or more Additions $135,000 or more New construction $135,000 or more Repair work affecting life safety systems $100,000 or more

Professional Services 1) Qualification Based Selection (QBS) procedure for Architects, Engineers, Surveyors,

Construction Managers at Risk, or Design-Build Contractors (Mini Brooks Act) Pursuant to N.C.G.S. 143-64.31, all Architect, Engineer, Surveyor, Construction Manager at Risk and Design-Build contracts where the fee is estimated to be $50,000 or above must be selected using the Qualification Based Selection (QBS) procedure. The QBS procedure is the award of the contract to a firm based on qualifications rather than price. Pursuant to G.S. 143-64.32, contracts with an estimated fee of under $50,000 may be exempted from the QBS procedure by written permission of the Town Manager. However, any contracts with an estimated fee of $50,000 or higher cannot be exempted from the QBS procedure. Professional services contracts under $100,000 must be approved by the Town Manager and contracts of $100,000 or higher require approval by the Board of Commissioners.

2) On-Call Engineering Contracts On-call engineering contracts are used to expedite the contracting of an engineering or architectural firm for general construction projects with the town. The QBS procedure is used to solicit responses from various firms. The responses are scored based on selected criteria and the top scoring firms are then selected for the on-call contracts which are rotated through the selected firms.

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Minority participation solicitation is required for the initial procurement of these firms. For any contracts over $30,000, a selected firm must also submit a list of any minority subcontractor firms that they plan on using for the project. The submission must include the name of the company, its minority designation, the amount of the contract and its percentage of the total contract amount.

3) Construction Manager at Risk (CMAR) A Construction Manager at Risk (CMAR) is selected using the Qualification Based Selection Procedure (Mini Brooks Act). The following list details the selection process for acquiring a CMAR:

• CMAR is selected based on qualifications rather than price. • Criteria is set for prospective firms to submit their qualifications. • Panel reviews submittals and scores prospective firms’ submissions. • Price shall be negotiated with highest scoring responsible firm and sent to Board of

Commissioners for approval. • If approved, the chosen firm conducts all bidding and oversees work for the project. • Plans and specifications for the project must be drawn by a licensed architect or

engineer who contracts directly with the town. • CMAR must be a licensed general contractor. • CMAR will conduct all bidding and provide the town with a Guaranteed Maximum

Price (GMP). • CMAR shall be responsible for any overage in the cost of the project once GMP is

established. • CMAR must supply performance and payment bonds (100% of cost) for any project

of $300,000 or more. • CMAR must follow the bidding requirements in N. C. G. S. § 143-129 and comply with

minority participation requirements in N. C. G. S. § 143-128.2. • Once project completed, CMAR must provide necessary information and documentation

for the town to complete its required HUBSCO reporting. B) Service Contracts

Service contracts are not required to be bid out under NC General Statutes, but the Town of Wake Forest’s policy states that services of $30,000 or more will be bid through the informal process. Written specifications must be sent out to obtain the informal bids if the cost will be more than $30,000. Departments are responsible for supplying specifications for the service or work (Purchasing Division will be available to assist with the development of specifications). Once completed, specifications shall be sent to the Purchasing Division to be reviewed, sent out, received and evaluated with the requester. The respective department will then enter a requisition and the Purchasing Division will convert it to a purchase order. More than one bid must be obtained before a purchase 67

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order will be issued. Service contracts less than $30,000 must have one written quote detailing the services to be performed and may be obtained by the requesting department. In addition, the contractor must meet and agree to the town’s Standard Terms and Conditions.

D) Sole Source Pursuant to N.C.G.S. §143-129(e)(6), in the event only one vendor is found capable of providing a specific good or service, the formal bidding procedures outlined in this purchasing policy may be waived. The Board of Commissioners must approve the sole source exception while informal bidding procedures may be waived by the Purchasing Manager. Such occasions must be documented by the Purchasing Manager with an explanation of the reason a sole source must be used. E) State of North Carolina Purchase Contracts (State Contract)

The Purchasing Division utilizes the State of North Carolina Department of Administration Purchase and Contract Division, whenever possible, for the procurement of capital and non-capital items. The State purchasing system expedites the purchase of goods, offers competitive pricing for items placed in formal and informal bids and up holds the statutory requirements encompassing purchases. Items do not have to be bid, nor do they require Board approval which saves time. A list of all State procured contracts may be viewed at: https://ncadmin.nc.gov/statewide-term-contracts F) Cooperative Purchasing Programs (CoOp) Pursuant to N.C.G.S. §143-129(e)(3), local governments may purchase through suppliers that are selected through a group purchasing program that is a “formally organized program that offers competitively obtained purchasing services at discount prices to two or more public agencies.” Program use is restricted to items and prices that were established under the group purchasing program contracts. Cooperative purchasing programs may only be used for purchase contracts. Purchases from Cooperative Purchasing Programs do not require Board approval. G) Waiver of Bidding for Previously Bid Contracts - “Piggybacking Procedure” Pursuant to N.C.G.S. §143-129(g), municipalities may purchase apparatus, supplies, materials, or equipment without bidding from any person or entity that has within the previous twelve months completed a public, formal bid process that is substantially similar in scope to the formal bid procedures as defined in NC General Statutes. This is commonly called the piggyback procedure. Municipalities may piggyback bids conducted by the following:

● The United States of America or any Federal Agency (GSA) ● The State of NC or any agency or political subdivision of the State

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● Any other state or any agency or political subdivision of that state, if the person or entity is willing to furnish the same items at the same or more favorable prices, terms and conditions as those provided to the other unit or agency.

The Board of Commissioners must approve any purchase made under this exception at a regularly scheduled meeting. A notice of intent to award using the piggyback procedure must be published in a newspaper or by electronic means for no less than ten complete days prior to the meeting. V: New Vendors To add a vendor to the current vendor list, the vendor needs to complete and submit an electronic New Vendor Form and a W-9 Form to the Purchasing Division. The following information is included:

● Complete name of the company or individual (including the Inc., Corp., LLC, etc.

specifications) ● Physical address ● Mailing address (where payment needs to be mailed) ● Federal Tax ID number or Social Security number (for an individual) ● Phone number for purchasing contacts ● Fax number for purchasing contacts ● Email address ● Name of the contact person ● Payment terms ● Credit card acceptance ● Minority status ● Signature acknowledging agreement with the Town’s Standard Terms and

Conditions.

Paperwork required to set-up a new vendor

Paperwork required for any new vendor providing on-site services

New vendor form (vendor completes)

W-9 (vendor completes)

Quote (vendor provides)

Certificate of Insurance (general liability, auto, workers comp and professional liability - if required) – vendor sends.

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Note: The Town must be listed as an additional insured under general liability. In addition, the Town must also be named as certificate holder.

Independent Contractor status form (if no workers comp) – vendor completes

Workers Compensation Waiver Form (if no workers comp) – vendor completes

Insurance Waiver Form (if vendor has no general liability, auto, workers comp, or professional liability) – Department Director or Town Manager must sign (dependent on severity of risk potential)

Paperwork required for any new vendor providing materials only

New vendor form (vendor completes)

W-9 (vendor completes)

Quote (vendor provides)

Section 2: Purchasing Procedures I. General Procedure All purchases exceeding $2,500 should go through the requisition process and must receive a purchase order before goods or services are received or provided. Department Directors are ultimately responsible for purchase and acquisition of supplies, materials, equipment, apparatus and services. Department Directors are authorized to approve purchases necessary for departmental operations. All purchases should be approved by Department Directors. Failure to comply with purchasing procedure may result in the town’s refusal to pay invoices and/or disciplinary action. There are two basic avenues for purchasing goods and services for the town’s operations 1) Procurement Cards (P-card) and 2) Purchase Orders. Purchases of less than $2,500 should be completed using P-Card while purchases over $2,500 should follow the procedures outlined in this policy to obtain a purchase order. 70

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Departments should obtain three (3) quotes before purchases of goods or services of $30,000 or more are made. A written quote must also be obtained for purchases over $2,500 under the informal bidding process. All purchases falling in the formal bidding process require written quotes, advertisement and the approval of the Board of Commissioners. After merchandise or goods are delivered, the Purchasing Division should be notified and given appropriate information, including receipts or delivery forms. It is important that departments keep close track of delivered and non-delivered items to ensure an efficient purchasing system. If any follow through actions are needed, such as returns or nonpayment, please notify the Accounting Division. Purchases under $2,500 Purchased orders are not required for goods or services less than $2,500. Departments are encouraged to use P-cards when possible for purchases under $2,500. If you are unsure what a vendor requires for a purchase, please check with the Purchasing Division. Some vendors require a purchase order regardless of the cost. Other vendors may require the use of a P-Card or only the departmental account code. Once a transaction occurs and goods/services are exchanged, please have the vendor put the proper account number on the receipt ticket and sign that items were received. Departments will need to turn all tickets into the designated Department Director or supervisor. Department Directors or their designee will need to review and sign all receipt tickets before sending them to the Accounting Division.

Purchases over $2,500 should not be split into smaller purchases to avoid purchase procedures. All purchases of $2,500 or more should be processed using the requisition and purchasing policy. Attempts to avoid the purchase order process may result in disciplinary action.

Purchases Between $500 - $89,999

Purchases of equipment, supplies, and apparatus in this price range require informal quotes. Purchases over $500 require a written quote. Purchases or services of $30,000 or more require three (3) written quotes.

Purchases of $90,000 and above

Purchases of equipment, supplies, and apparatus in this price range require the item to be formally bid. The formal bid process includes advertisement of the bid, sending out bid packages, public bid opening, evaluating the opened bids and presenting the recommended award to the Board of Commissioners for their approval, where applicable.

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Dollar Threshold Do I need a quote and purchase order?

Minimum Requirements

$0 – 500 *Multiple quotes NOT required. *P-Card purchase method preferred. *Purchase order not required.

*Must keep receipts from P-Card purchases. *General ledger account number for the respective.

$500 – 2,500 *Purchase order not required.

*General ledger account number for the respective.

$2,500 - 89,999 *Written quote required. *Purchases of $30,000 or more require three (3) written quotes.

*Should be processed using the requisition and purchasing procedure.

$90,000 and above *Formal Bid required. *Formal bid process includes advertisement.

II. Petty Cash Petty cash may be used when an employee incurs an expense where he/she uses their own funds. The limit for petty cash is set at $50. To be reimbursed for petty cash expenditures, employees must complete a Petty Cash Form and attach a signed receipt for the item(s) purchased. The form must then be signed by the Department Director or supervisor. Purchases using petty cash should be limited to unusual and emergency situations. Otherwise, employees should use P-cards, purchase orders or a check request.

III. Vendors and Selection Policy Vendor selection is done on a competitive basis. Responsibility, ability to deliver desired goods or services, all costs, past performance, residence and minority status will all be considered. Formal bids, informal bids and all quotes will be solicited by Department Directors or designee unless otherwise mandated by law. Bid awards, contracts and purchase orders will be issued to the lowest responsible bidder. The Town will maintain a list of current vendors that includes information about the company such as: name, tax ID number, physical and mailing address, etc. For responsibility and efficiency, the Town prefers to use current vendors when possible. However, if a new vendor offers means of maximizing value that a current vendor cannot, then a new vendor should be solicited. 72

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Selection In accordance with N. C. G. S. §143-129, invitation for formal bids will be used for purchases of $90,000 or greater and for repairs and construction of $500,000 or greater. Bid openings must be advertised for at least seven full days. Sealed bids will then be received. In accordance with N. C. G. S. §143-131 and Town policy, Request for Written Quotes (RFQ) will be used for all purchases of $30,000 or greater. Advertising for these quotes is not necessary, but attempts should be made to obtain three (3) quotes. These quotes should be immediately forwarded to the Purchasing Division once the request has entered the system. Vendor Relations Strong vendor relations are critical for maintaining professional and effective purchasing standards for the town. Mutual confidence is necessary between vendors (and potential vendors) with the town to establish good relations. The town encourages vendors to supply adequate information concerning their materials, services, methods and ideas that have a potential practical application.

The Purchasing Division maintains a vendor file with performance records of vendors who have done business with the town. If a department has concerns or experiences difficulties with a vendor, then it should be documented properly and forwarded to the Purchasing Division. Staff feedback is critical in maintaining an efficient and reliable vendor list for services.

IV. Exceptions to the Purchase Order Procedure There are also several exceptions to the purchase order requirement. For these exceptions a purchase order is not necessary, but purchases should be approved by the Department Director. This list is not all inclusive and could require a check request form.

● Emergency Situations as defined under General Guidelines and determined by the Town Manager and/or Chief Financial Officer

● Fuel for vehicles, equipment and generators ● Advertising (legal ads, radio announcements, etc.) ● Hotel and travel expenses ● Telephone/Telecommunications purchases and monthly billing ● Utilities ● Refunds ● Medical exams and drug testing ● Purchases for goods, services, construction contracts, or repair contracts, under

$2,500 73

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● Schools, seminars, and conferences ● Dues and subscriptions ● Claim payments ● Insurance premiums ● Professional services (accounting, legal, financial, appraisals, etc.) ● Postage, postage permits and expenses ● Rental of buildings for special events ● Catering services/food ● Town sponsored/special events (Independence Day celebration, Friday Night on

White, Mardi Gras, etc.)

V. Requisitions Requisitions are the first step for issuing a purchase order from the Purchasing Division. The tool is also used to obtain information on pricing, products/services, budget information and Department Director approval. Requisitions allow the Purchasing Division to ensure there are sufficient funds in a specific account to charge for the requested goods or services. The following guidelines will help ensure requisitions are processed efficiently through the purchasing system.

● A requisition must be completed for all purchases over the $2,500 threshold to obtain a purchase order.

● Requisitions (and purchase orders) must be completed before goods and services are rendered.

● Department Directors (or designees) should determine that sufficient funds are available in the proper account and must approve all requisitions before purchase orders are issued.

● A designee should be chosen to approve requisitions in the absence of a Department Director.

● Information on requisitions must be complete and accurate. The following information is required for all requisitions. Any incomplete requisitions will be returned to the requestor for the necessary information.

○ Vendor ○ Shipping address ○ 9-digit account number ○ Requesting department ○ Complete and accurate description of the good or service

If applicable the following information must be included as well:

○ Cost of shipping ○ Part numbers ○ Special instructions ○ Date needed

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● If there are insufficient funds in the requested account, the Purchasing Division will notify the requestor. It is then the responsibility of the requesting Department to request a budget transfer to provide sufficient funds to the account. The Chief Financial Officer (or designee) must approve all transfers before the requisition can be converted into a purchase order.

● Departments should obtain a written quote from vendors for the requested goods

or services. This will help eliminate any discrepancies in price, quantity, shipping, etc. More than one quote is preferred to ensure maximizing the value of expended resources. Quotes should always include shipping and handling prices. Quotes should be electronically attached to the requisition when entered into the financial management system.

● Requisitions will be processed in the order they were entered into the system.

Walk-through requisitions will only be processed in the event of an emergency. Emergency situations will be determined by the Purchasing Division.

● Requisitions for new items or services, requisitions that require informal quotes,

and requisitions that require formal bids will take longer to process. Staff is encouraged to plan accordingly to avoid scheduling problems.

VI. Purchase Orders Policy Purchase orders provide documentation of the goods to be purchased, services and/or construction work to be performed. The documentation ensures the funds are available to cover the amount of the purchase order. Purchase orders are also a contract between the town and the vendor, but are non-binding until accepted by the vendor. The following guidelines should be followed for all purchase orders:

● Purchase orders must be completed before services and goods are delivered for all purchases of $2,500 or more (excluding noted exceptions).

● If purchases are made in an emergency situation for necessary goods or services, the Purchasing Division must be notified as soon as possible and a purchase order should be created.

● Failure to obtain a purchase order before making a purchase, having a service performed or starting construction/repair projects will result in disciplinary action, including holding the purchaser financially responsible for purchases and up to dismissal.

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Purchase Order Cut-off Dates The cut-off period is established to allow the Finance Department to settle on as many accounts as possible before the end of the fiscal year. This enables the annual audit to commence and proceed as efficiently as possible. It ensures that money is not only designated, but expensed in that fiscal year. The cut-off date will be set annually by the Chief Financial Officer and communicated to Department Directors.

Approximately 45-60 days before the end of the fiscal year, June 30, all purchase orders will be stopped and any purchases made during this time frame should be for EMERGENCY situations only.

Department Directors and designees should plan accordingly. Any purchase request after the cut-off date will need the approval of the Chief Financial Officer. Any purchases requested at the end of the year should be for essential items only. The town does not operate under a “use it or lose it” philosophy. However, funds will be allocated for justifiable expenditures. Purchase Orders Carried into the Next Fiscal Year

All purchase orders should be closed out by the end of the fiscal year in which they were created. All purchase orders for services and supplies will be closed out and liquidated at the end of the fiscal year. New purchase orders will need to be created to continue the purchase of these services or supplies in the upcoming fiscal year. Purchase orders for items that have been ordered but will not be delivered until after the end of the fiscal year due to long delivery times, may be carried forward into the new fiscal year. The Chief Financial Officer will have ultimate discretion on purchase orders that can be carried over into the new fiscal year.

Purchase Order Follow-Up

Maintaining up to date and accurate records on purchases for delivered and undelivered items is an important function of an efficient purchasing system. It is important that the ordering department keeps close check on delivery dates of orders and alert the Accounting Division if any follow through is required. Follow-up of an order can be more effectively handled by the Purchasing Division. The Purchasing Division will, on a regular basis, review outstanding purchase orders to ensure delivery is occurring in a timely manner. If vendors are delinquent in delivering requested items, the Purchasing Division should be notified. The Purchasing Division will contact these vendors and take any other appropriate action.

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VII. Change Orders All changes or modifications of existing purchase orders must be initiated by the Department Director or designee. All pertinent information needed to make changes should be included with in a Change Order Form. Change orders are not allowed for situations that would alter the procurement procedure (i.e. from an informal to a formal process, or that would add items to a purchase order). Change orders will not be allowed after services or goods have been received. All change orders of $2,500 must have a purchase order. Professional Service Contracts -

● Change orders of $25,000 or more for professional service contracts with the original cost under $100,000 must be approved by the Town Manager.

● Change orders of $25,000 or more for professional service contracts with the

original cost over $100,000 must be approved by the Board of Commissioners.

● Change orders under $25,000 to professional services contracts must be recommended by the Department Director and approved by the Chief Financial Officer.

Construction or Repair Contracts -

● Change orders of $100,000 or more to construction or repair contracts with the original cost under $500,000 must be approved by the Town Manager.

● Change orders of $100,000 or more to construction or repair contracts with the

original cost over $500,000 must be approved by the Board of Commissioners.

● Change orders under $100,000 to construction or repair contracts must be recommended by the Department Director and approved by the Chief Financial Officer.

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Change Orders

Type of Change Order

Change Order

Amount

Original Contract Amount

Action Required

Professional Services

$25,000 + Less than $100,000

Approval by Town Manager

Professional Services

$25,000 + Greater than $100,000

Board Approval

Professional Services

Less than $25,000

Any Amount Department Director & Chief Financial Officer

Construction & Repair Contracts

$100,000+ Less than $500,000

Approval by Town Manager

Construction & Repair Contracts

$100,000+ Greater than $500,000

Board Approval

Construction & Repair Contracts

Less than $100,000

Any Amount Department Director & Chief Financial Officer

VIII. Quotes Departments should always attempt to solicit multiple quotes before making purchases. Town policy suggests that three (3) quotes should be obtained. All quotes should be recorded to provide adequate information and documentation. This can be done by attaching the quote to the requisition submission within the financial management system. Purchases of more than $500 should have a written quote. Purchases and services of more than $30,000 must have three (3) written quotes. State Statutes (N.C.G.S. §143-129, §143-131) require that formal and informal bids must have written quotes. All quotes, including written and verbal, should include all information necessary to outline the 78

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purchase order. This includes all information necessary for a requisition that is possible to obtain. Verbal quotes require the same scrutiny and recording that written quotes receive. Verbal quotes should include the name, title and time of the person giving the quote. All quotes should include the cost of shipping if applicable. This cost can be included in the price of the item or as a separate line item in the quote. The cost of shipment is important and should be considered in the overall cost of the item. This helps prevent vendors from giving a lower price to receive a purchase only to make the money back in higher shipping fees. All formal bids must be handled in conjunction with the Purchasing Division, as well as with the necessary staff and consultants. The Purchasing Manager should be included at the beginning of the bidding process.

Section 3: Procurement Cards (P-Cards) This policy applies to all town employees that have been issued a procurement card (P-card). A P-card is a credit card issued by to the Town for use in making direct purchases from vendors. The P-card provides a cost effective, convenient and decentralized method of purchasing for individuals whose jobs require them to make frequent business-related purchases. The individual named on the card is authorized to make certain business purchases on behalf of the Town. P-card transactions over $2,500 require a purchase order. Use of the P-card is a privilege extended to town employees. As with all town privileges, the use of the P-card can be revoked for inappropriate or unauthorized use. The town is liable to the credit issuer for the charges and remits payment directly to them. PERSONAL PURCHASES ARE NOT PERMITTED. A P-Card purchase must be used for business purposes ONLY and in full compliance with other town policies. The cardholder is responsible for ensuring that any expense paid with a P-Card is not otherwise submitted reimbursement or used for any inappropriate purpose. Failure to use the card in compliance with this policy may result in the suspension or revocation of the P-Card and, but not limited to, employee termination, as well as the filing of criminal charges.

● P-card Credit Limit - Each card holder is assigned a credit limit. An increase to a cardholder’s limit requires an email request from the cardholder’s supervisor to the Chief Financial Officer with the amount of increase.

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● Card Usage - Transactions made with the P-card must be in accordance with all the town’s policies, procedures and regulations. The card is not intended to be a tool to circumvent existing policy or regulations.

● Personal Purchases – PERSONAL USE OF A P-CARD IS PROHIBITED. Cardholder understands that he/she shall be personally liable for any improper use of the town P-Card and agrees to obtain a direct credit from the vendor for improper charge to the P-Card. The cardholder understands that his/her personal use of the town P-Card may result in disciplinary action by the town, including termination. Improper use of the town P-Card may subject the cardholder to criminal prosecution. Cardholder will reimburse the town for personal purchases.

● Bi-monthly Statement and Signoff of P-Card Charges - The cardholder will receive an

email from the Finance Department when transactions have been made to his/her card. The cardholder is required to match a receipt to each transaction appearing on the statement. It is the cardholder’s responsibility to allocate and signoff the charges on the P-Card account. Cardholder’s must do the following (electronically) to reconcile a P-Card account:

1. Login to P-card account through the SunTrust Portal. 2. Locate charges and use general ledger account number to be charged and provide

an expense description. 3. Attach all receipts and obtain all necessary signatures associated with the charges

(Failure to allocate and signoff on the P-Card charges may result in charges being allocated to incorrect general ledger account numbers).

4. Submit charges to Finance for final reconciliation.

● Billing/Shipping Address - The vendor will require the cardholder’s billing address. The address MUST be as follows:

301 S Brooks St Wake Forest, NC 27587

Failure to use this billing address may result in the purchase being declined. Items purchased can be shipped directly to the billing address.

● Small Dollar Purchases - A small dollar purchase is defined as a purchase whose total value does not exceed $2,499.99. For purposes of administrative efficiency, town employees who have been issued a P-Card in their name may use it to purchase items from a vendor when the dollar value does not exceed $2,499.99. This small dollar limit does NOT apply to purchases associated with travel.

● Splitting Orders - Cardholders are expressly prohibited from splitting orders to

circumvent the $2,500.00 purchase order policy. Moreover, cardholders shall not 80

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encourage vendors to split orders. This is considered inappropriate use of the P-Card and can result in disciplinary action.

● Cancelled Cards - A P-Card may be cancelled immediately for any of the following

reasons: 1. Unauthorized or inappropriate use 2. Cardholder employment termination 3. Cardholder department transfer

The cardholder’s supervisor is responsible for ensuring that employees terminating employment with the town or transferring to another town department return the P-Card and supporting documents to the Finance Department prior to their departure or transfer.

● Card Security - It is cardholder’s responsibility to safeguard the P-Card and the account

number with the same degree that the cardholder safeguards his/her personal credit card. Sharing, loaning or otherwise providing the P-Card number to any other individual may result in the cardholder having his/her P-Card revoked.

If a P-Card is lost, stolen or if the cardholder discovers fraudulent charges, the cardholder is responsible for notifying the issuer as soon as possible. The cardholder is also responsible for contacting the Finance Department regarding a lost or stolen card or the discovery of fraudulent charges.

● Inappropriate Purchases - An inappropriate purchase is a purchase made using town

funds that has no business purpose. Inappropriate purchases may result in disciplinary action.

● Documentation of Charges - The town requires sufficient documentation for all

purchases made with the P-Card to comply with its policies, sound business practices, the requirements of external auditors and the Internal Revenue Service. Proper documentation includes an original receipt, email confirmation, packing slip or commercial invoice.

● Missing Documentation - A cardholder who loses or misplaces an original receipt should

attempt to secure a replacement receipt from the vendor. Should this fail, the cardholder must complete the P-Card Missing Receipt Affidavit form in lieu of the original receipt.

● Transaction Credits - Transaction credits must be allocated to the same general ledger

account number that the original purchase was allocated. The cardholder must obtain a credit receipt from the vendor noting the credit on the P-Card.

● Erroneous/Disputed Charges - It is the cardholder’s responsibility to contact the vendor

immediately if there is an erroneous charge on his/her account. (If this does not remedy the situation, the cardholder should immediately contact the credit card company by

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using the phone number on the back of the card. Also, complete the Customer Statement of Disputed Charge by logging into their website.)

● Outside Reviews and Audits - Cardholder transactions are subject to review and audit by

the Finance Department and external auditing agencies. Based upon these audits, cards may be suspended, permanently revoked or other disciplinary action may be taken.

● Disciplinary Action - Serious violations of P-Card policies may result in disciplinary action.

Any violations will be in conjunction with the town’s personnel policy and disciplinary action may include, but is not limited to, oral reprimand, written reprimand, card deactivation or termination of employment.

Section 4: Competitive Bids and Proposals

I. Purchase of Supplies, Materials and Equipment Formal Bids for supplies, materials and equipment ($90,000 or more) Purchase of supplies, materials, apparatus and equipment estimated to cost $90,000 or more require the use of a competitive sealed bidding process under N.C.G.S. §143-129. An Invitation to Bid (ITB) is the primary method used to solicit bids for the purchase of such goods. After receiving a request to purchase supplies, materials, apparatus and equipment with an expenditure of $90,000 or more, the Department Director or designee along with the Purchasing Division will develop and prepare specifications for bidding. Specifications for bidding are outlined in Sec. 2, III. The Chief Financial Officer and the Purchasing Manager will be responsible for ensuring all statutory requirements are satisfied including, but not limited to, issuance of the invitation to bid, advertisement, and receipt of sealed bids. Once bids are received, the Purchasing Manager and the Department Director will review all bid responses to determine the bid deemed in the best interest of the town. The bids MUST be opened publicly. The Department Director will then send a memo making a formal recommendation with accompanying documentation to the Chief Financial Officer, Town Manager and the Board of Commissioners. The Board MUST approve all formal bids. Once approved, the Department Director will submit a requisition and the Purchasing Manager will initiate the purchase order and/or contact the successful bidder. The formal bid process is somewhat lengthy, so Department Directors should plan accordingly and anticipate the bid time and delivery time while creating schedules. Advertising

Purchases subject to the public bidding requirement in accordance with N.C.G.S. §143-129 must be entered using the following procedures: 82

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Public Advertisement

The Purchasing Manager should be notified and will assist in all publicly bid advertisements. Bids for purchases of $90,000 or more must be advertised a full seven (7) days before opening of bids can commence. Advertisement must be made in a newspaper having general circulation in the town, and/or by electronic means. At a minimum the advertisement must include the following information:

● A brief description of the project ● The time and place specifications will be available ● The time and place bids/proposals will be received and opened ● A statement reserving the right to reject any or all bids ● Any bid package requirements including special markings

Bid Packages All bid packages submitted to the town for consideration must be delivered in a sealed package. The packages must be clearly marked with the words:

Bid Document Enclosed

The following information must be included: Bid Number, the Bid Opening Date and the Contractor License Number, when applicable.

All bid packages must be opened in public, on the day and time and at the location specified in the ITB. The Purchasing Division will tabulate and record all bids received. Awarding the Bid

All formal contracts must be approved and awarded by the Board of Commissioners. Award will be made to the lowest responsible bidder or bidder that meets the requirements specified in the bid (based on quality, performance, and time). If the lowest responsible bids are more than the funds authorized for the project, the town can negotiate with the lowest responsible bidder to make reasonable changes in the specifications and bring the contract price within available funds. Three (3) bids must be received before an award is made for all construction and repair bids. If three (3) bids are not received, the project must be re-advertised according to the original advertising requirements. If after the re-advertisement there are still less than three (3) bids, a contract can legally be awarded. The Board of Commissioners reserves the right to waive any formalities or technicalities and to make awards based on the best interests of the town. 83

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Bid Bonds Bid Bonds are not required on formal bids for supplies, materials, and equipment ($90,000 or more). Informal Bids for Supplies, Materials, and Equipment ($30,000 to $89,999) Under the informal bidding requirements set forth in N.C.G.S. §143-131, all purchases of supplies and materials for $30,000 and less than $90,000 require written quotes and Requests for Quotation (RFQ). Town policy requires a written quote for all purchases over $500 and multiple written quotes for all purchases over $2,500. Bids of this type do not need the approval of the Board of Commissioners. The requesting department may solicit quotations to help facilitate the purchasing procedure. The quotation must be on the vendor’s letterhead or on an official quotation form. Three (3) written quotes should be included with the purchase order when submitted to the Purchasing Division. After receiving a completed requisition for purchases under the informal bidding threshold the Purchasing Division will send out Requests for Quotation (RFQ) to qualified vendors supplying the product(s) desired if three (3) quotes have not been obtained by the requesting department. Written quotes from the solicited vendors will be compared and the vendor providing the quote that suits the best interest of the town will be awarded the purchase order. The Purchasing Division will generate the purchase order and contact the successful bidder. Purchases of Supplies, Materials and Equipment Less Than $30,000 Under the guidelines set out by N.C.G.S. §143-131, purchases under $30,000 do not require informal bidding practices. However, town policy does require written quotes for all purchases over $2,500 and three (3) written quotes for purchases over $30,000. After receiving a completed requisition for purchases of supplies, materials and equipment for less than $30,000, the Purchasing Division and/or the requesting department will solicit quotes. In accordance with town policy, the Purchasing Division and/or the requesting department will attempt to obtain the required number of quotes. Once the quote in the best interest of the town is determined, the Purchasing Division will generate the purchase order and notify the successful bidder.

II. Construction and Repairs General Contractors License A general contractors license is required for construction or repair projects of $30,000 or more.

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Formal Construction and Repair Contracts ($500,000 or more)

The formal bidding process for construction and repairs of $500,000 or more are governed by N.C.G.S. §143-129. Construction and repair contracts within this price range shall be the responsibility of the Purchasing Manager, Department Director, Contracted Engineer and other Town officials as deemed necessary. The above mentioned are responsible for specification development. The formal bidding process for construction and repair contracts is the same as formal bids for materials, supplies, and equipment outlined in Sec. 2, I. After the formal bidding process is complete, the Department Director shall recommend the lowest responsible bidder in the town’s best interest to the Board of Commissioners. The Department Director will also include information about funds budgeted for the project. The Board of Commissioners must approve all construction and repair contracts of this type.

● Bid Bond ● Performance/Payment Bond ● Insurance

Formal construction or repair contracts require a bid bond of 5% of the amount bid which must be submitted with the bid. Performance and payment bonds of 100% of the amount bid are required before a purchase order can be issued and/or a contract can be executed. Along with having a contractor’s license for all construction and repairs of $30,000 or more, proper insurance, including workers compensation, must be obtained by the contracted vendor before a purchase order can be granted. Informal Construction and Repair Contracts ($30,000 to $499,999)

Construction and repair contracts with a total expenditure expected to be $30,000 to $499,999 shall be bid in the manner set forth under N.C.G.S. §143-131, the informal bidding process. Bid award will be made to the lowest responsible bidder. Contracts of this type do not require the approval of the Board of Commissioners. As with all competitive bidding, three written quotes should be obtained. All rules for governing engineering or architectural services also apply. Performance and payment bonds are required for all contracts of $300,000 and above. Along with having a contractor’s license for all construction and repairs of $30,000 or more, proper insurance, including workers compensation, must be obtained by the contracted vendor before a purchase order can be granted. Upon approval by the Department Director, a purchase order will be generated by the Purchasing Division to encumber the funds for the contracted monies.

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Construction and Repair Contracts under $30,000

All construction and repairs less than $30,000 should follow the town policy. This requires a written quote for all contracts of $2,500 or more and three (3) written quotes for purchases over $30,000. Department Directors and the Purchasing Division will be responsible for these purchases. Proper insurance, including workers compensation, must be obtained by the contracted vendor before a purchase order can be granted.

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How much is the purchase?

Below $2,500 $2,500 & above

Compare costs

Check budget

Make purchase via P-Card

$2,500 - $14,999.99

$15,000.00 - $29,999.99

$30,000.00 - $89,999.99 Material/ Equipment

$30,000.00 - $499,999.99 construction or repair

$90,000.00 & above/ $500,000.00 & above for construction & repair Dept. obtain (1)

informal quote

Dept. will process requisition using the lowest cost, most suitable vendor

Purchase Div. reviews & issues PO to vendor

Purchase Div. or Dept. makes purchase

Dept. obtain (1) informal quote

Dept. will process requisition using the lowest cost, most suitable vendor

Purchase Div. reviews & issues PO to vendor

Purchase Div. or Dept. makes purchase

Informal bid

Obtain at least (3) written quotes

Dept. will process requisition using the lowest cost, most suitable vendor

Purchase Div. reviews & issues PO to vendor

Purchase Div. or Dept. makes purchase

Informal bid

Obtain at least (3) written quotes

Dept. will process requisition using the lowest cost, most suitable vendor

Purchase Div. reviews & issues PO to vendor

Purchase Div. or Dept. makes purchase

Formal bid process

Issue invitation to bid

Public advertisement

Formal bid opening

Council approval

Dept. will process requisition using the lowest cost, most suitable vendor

Purchase Div. reviews & issues PO to vendor

Purchase Div. or Dept. makes purchase 87

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III. Specifications Specifications must be determined when goods or services are put out for bid under the formal and informal processes. Normally these specifications are determined by the Purchasing Division, the requesting department and professional consultant (i.e. engineer, architect, etc.). All specifications should provide the following:

● Identify minimum requirements ● Encourage competitive bids ● Be capable of objective review ● Provide for an equitable award at the lowest possible cost

Specification should be as simplistic and specific as possible but should maintain a degree of exactness that will prevent bidders from avoiding the supply of necessary goods or services in a contract and/or take advantage of the bidding process. All specifications using a name brand in the description must include the term “or approved equal” to avoid being excessively restrictive in the specifications.

IV. Bidding Exemptions N.C.G.S. §143-129 defines a number of exemptions to the competitive bidding requirements. The following categories of purchases that would impact the town are exempt from both the formal and informal bidding requirements established in N.C.G.S. § 143-129.

1) Purchases from other units of government; N.C.G.S. § 143-129(e)(1) 2) Emergencies; N.C.G.S. § 143-129(e)(2) 3) Group or Cooperative Purchasing Programs; N.C.G.S. § 143-129(e)(3) 4) Change Order Work; N.C.G.S. § 143-129(e)(4) 5) Gas, Fuel, and Oil; N.C.G.S. § 143-129(e)(5) 6) Sole Source Purchases; N.C.G.S. § 143-129(e)(6) 7) Information Technology Goods and Services awarded by the North Carolina Office

of Information Technology Services; N.C.G.S. § 143-129(e)(7); 143-129.8 8) Guaranteed Energy Savings Contracts; N.C.G.S. § 143-129(e)(8) 9) State Contract Purchases; N.C.G.S. § 143-129(e)(9) 10) Federal Contract Purchases; N.C.G.S. § 143-129(e)(9a) 11) Purchase of Used Goods; N.C.G.S. § 143-129(e) (10) 12) Construction Management at Risk; N.C.G.S. § 143-129(e) (11) 13) Previously Bid or "Piggybacking" Contracts; N.C.G.S. § 143-129(g) 14) Use of Unit's Own Forces (force account work); N.C.G.S. § 143-135 15) Purchases of Goods and Services from Nonprofit Work Centers for the Blind and

Severely Disabled; N.C.G.S. § 143-129.5

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V. Dispute Resolution Pursuant to N.C.G.S. § 143-128(g), N.C.G.S. § 143-135.26(11), The Town of Wake Forest shall use the dispute resolution procedures adopted by the State Building Commission. Any disputes that arise out of the construction process with a monetary value of over $30,000 shall be resolved according to these procedures.

Section 5: Uniform Guidance Procurement Policy for Using Federal Funds Contracts funded with Federal grants or loan funds must be procured in a manner that conforms with all applicable Federal laws, policies, and standards, including those under the Uniform Guidance (2 C.F.R. Part 200). A “Uniform Guidance Procurement Policy for Using Federal Funds” is available for viewing as a separate policy. All departments that are conducting any projects that are receiving Federal funding are encouraged to review the policy prior to initiating the start of the project’s bidding phase.

Section 6: Delivery and Performance For a purchase order to be executed successfully, all goods and services contracted for must be accounted for in their delivery. Delivery to the warehouse for all purchases is encouraged to ensure purchases meet the requirements of the purchase orders and to verify validity of purchases. The purchase order must clearly define the delivery and performance requirements for the services, supplies or equipment. It is also the responsibility of the receiving department to ensure that deliveries contain the items listed on the vendor delivery invoice and to obtain a signature from the delivery person. The importance of the expected delivery schedule should be emphasized to the vendor. Obtaining expected delivery schedules from the vendor, in writing if possible, should always be attempted. Delivery requirements will always be written and fully understood by all vendors. If there are several items on the purchase order, then there may be the need to set up different delivery schedules for each item. It is also important to clearly indicate the exact delivery location for every item on the requisition. The concerns for life and safety are also critical. To address these concerns, delivered items and equipment are inspected upon receipt to ensure there are no damages. The purpose of this inspection is to confirm that the specifications and safety requirements outlined in the purchase order or contract are met. I. Complete Delivery Upon receipt of all items for a purchase order, the purchase order process is still not complete. The receiving department must indicate items and quantity received on the billing invoice, sign

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and date the invoice, receive the delivery person’s signature and forward all documentation received with the delivery to the Accounting Division. II. Partial Delivery Purchase orders may list several individual items to be delivered. It is possible that the vendor may deliver some of the expected items in a timely manner, but not all the expected items. This is considered a partial delivery. When a partial delivery is received, a photocopy the purchase order must be made and a copy of the vendor delivery invoice must be attached. The copied purchase order and the attached delivery invoice must be forwarded to the Accounting Division with a memo outlining delivered and undelivered items. III. Non-performance If a vendor fails to meet any of the requirements or specifications outlined in the purchase order or contract, the vendor can be cited for non-performance. The level of significance for the non-performance will be evaluated based upon the circumstances of each violation. IV. Rejection To protect the town’s interests and rights in the event of a rejection of services or products, for any reason, the vendor should be informed immediately. Reasons for the rejection must be documented in a memo, attached to a copy of the purchase order and vendor invoice and forwarded to the Accounting Division in a timely manner. Purchasing will notify the vendor of the reason for the rejection. V. Damaged Goods One reason for immediately inspecting deliveries is to detect any visible damage. When it is apparent that damage causes the goods to be diminished significantly in value, they will not be accepted. It is necessary that all damage, including evidence of concealing damage, should be documented in a memo, attached to a copy of the purchase order, and forwarded to the Accounting Division. The Purchasing Division will inform the vendor of the damaged goods.

Section 6: Warehouse Policy I. Purpose The town has established a central warehouse to procure adequate levels of stock necessary for the operations of the town’s services. The warehouse is also responsible for administering the distribution of inventory and materials to all departments necessary to fulfill the operational needs of the town. This service will be accomplished while maintaining OSHA standards in the organization and distribution of warehouse stock. 90

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II. Issuing of Stock Issuing Hours: Monday – Friday between the hours of 7:00 am – 12:00 pm and 12:30 pm – 3:30pm It is critical that any stock obtained is to be checked out. The material in the warehouse will be handled by warehouse staff and any stock taken off the warehouse yard needs to be promptly reported to warehouse staff. Tagged Items Items such as, but not limited to, poles, transformers, three-phase transformers, wire and flexible conduit all have tags on them. These tags and any other item with accompanying documentation needs to be removed and turned into warehouse staff when the item is picked up. All items with a tag that are surplus must be turned into warehouse staff as well. Non-tagged Items Non-tagged items are as follows, but are not limited to, single-phase underground transformers, stick type conduit, transformer pads, secondary pedestals, junction cabinets and sleeves. Please make sure that these items are reported immediately to the warehouse when items without tags are picked up. Guidelines

● Contact the warehouse staff for any inquires or status updates on an item. ● When an employee obtains stock he/she is required to initial on the material issuing sheet

about any received items. ● Be advised that any material taken off the yard and not reported leads to inaccurate

inventory counts which may lead to the item being out of stock or in very low supply. ● Warehouse staff will show any new employees current stock on the yard and explain

issuing procedures.

III. Receiving Deliveries Receiving Hours: Monday – Friday between hours of 7:30 am – 11:30 am and 12:30 pm – 3:00 pm When inventory is delivered it will be inspected and counted by the warehouse staff. Items will then be placed in the appropriate places.

● Staff is not to remove any items on the delivery dock or not in its usual place on the yard. ● Anyone signing for a delivery, warehouse staff or otherwise, should make sure that the

delivery contains the quantity of items being signed for is available and ensure nothing is damaged. 91

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○ If the delivery is short in quantity or damage to items is identified, ensure that the delivery person notes the discrepancies on the delivery form before it is signed.

○ Turn any delivery tickets or packing slips into the warehouse staff as soon as possible.

○ Items should be picked up as soon as possible once a non-stock item is delivered to the warehouse and the requestor is notified by warehouse staff.

○ If an item is shipped directly to a requestor, then it’s the requestor’s responsibility to check the item for needed count and quality and send delivery slips to the Accounting Division.

IV. Returning Stock If an employee requests stock that later is determined not to be needed, it should be returned to the warehouse and the account charged will be credited. Material that has been used for short periods of time and remains in the same fiscal year may also be returned for account credit. Items must be returned in the same fiscal year as they were purchased or issued. The material must be cleared by warehousing and signed off on by the department superintendent (or designee). Guidelines

● Material that has been in the field more than six (6) months may not be returned to the warehouse.

● Material needs to be returned in the same condition as it was checked out to be cleared by warehouse staff.

● Any wire, connectors, wildlife shields, bolts, nuts, etc. must be removed before material is returned.

● Material not in proper return condition will be sent back to the appropriate department. ● Charged out material must never be mixed back in with in-stock items. ● Material that is charged out in one fiscal year may not be returned in a different fiscal

year. ● It is the responsibility of the department to find storage space for any material that a

department wishes to keep. Wire and transformers are the only exceptions. ● If a roll of wire is checked out for limited use, the person obtaining it must note the

footage used and when it is returned. That amount will be charged to the appropriate account. Rolls will be retagged after returned to reflect the new footage.

● Wire that is brought back and is expected to be used for the same purpose very soon will be tagged surplus.

● Any transformers brought back after extended use, but deemed in good working order, will be tagged surplus and put back on the yard in the appropriate place.

● Material that was charged out to a department upon ordering may not be returned to stock.

● Any excess material charged out will be the responsibility of the requesting department, including storage.

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V. New Items to Stock Any department wishing to add new inventory must fill out a New Inventory Stock Sheet and have it signed by the Department Director or Superintendent. They must complete the form and include the following:

● description of the item ● explanation of what the item will be used for ● model or part number ● recommended minimum and maximum levels to stock ● if applicable, what the item replaces

VI. Obsolete Stock Any stock item deemed to be obsolete needs to be removed from the inventory. If a department determines that a stock item is no longer useful an obsolete stock removal form should be filled out and signed by the Department Director or Superintendent. The form should include:

● the inventory number ● description of the item ● an explanation of why the item is no longer useful

VII. Scrap Material All scrap aluminum or copper wire, metal items, signs, etc. that are taken out of service will be brought to the metal scrap bin on the warehouse yard and deposited. Any scrap material that is not metal shall be placed in the dumpster on the yard.

VIII. Frequently Used Items Some of the small inventory items that are frequently used will be charged out for a truck stock and placed on a rack located at the warehouse dock. These items do not need to be issued out. The employee can take what items are needed and do not need to notify the warehouse to check out the items. This is for specific, high-volume use items only. The warehouse staff requests that if an item is out or low let them know so stock can be replenished.

IX. Surplus Items for Public Sale Any items that a department desires to be declared surplus and/or sold should be reported to the Purchasing Manager using the Surplus Disposition Form. The warehouse staff will decide on a suitable area to store the item until it is sold. If the item is deemed too large to be stored at the warehouse’s surplus storage area, then the item’s storage will be the responsibility of the department that wants to surplus it. 93

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Departments requesting the surplus of capital assets (i.e. vehicles, heavy equipment, or other equipment valued over $5,000) must adhere to the following protocol:

● Turn in a Surplus Disposition Form to the Purchasing Division ● Turn vehicle tags into the Fleet Maintenance Supervisor ● Contact Risk Management to have item removed from insurance ● Once sold, the Accounting Division should be notified so the item can be removed from

fixed assets.

X. Access to Warehouse No person shall enter the warehouse unless escorted by a member of Purchasing. Employees shall remain at the counter and place their order for material with the warehouse staff. The staff will pull the items and bring them to the requester or put the requested items in a designated, agreed upon place. If an employee must go into the warehouse to check an item, only one employee may be accompanied by warehouse staff. The only time an employee should be unaccompanied in the warehouse is during after-hours emergencies. Individuals not employed by the Town of Wake Forest should never be allowed in the warehouse unless it is to perform a service. Service providers will be escorted by a member of the Purchasing Division.

XI. After Hours Emergency Any employee that needs to obtain stock after hours, weekends or holidays must comply with the following procedure:

● If the employee must enter the yard, a gate code must be used to open the main gate and an employee ID badge must be used to enter the warehouse. Gate codes and employee ID badges can be obtained from warehouse staff. Building keys can be obtained from the Public Works Director. Do not share gate codes or employee ID badges with others, as all entries to the warehouse are monitored.

● If the employee must enter the warehouse to obtain items, fill out an issue sheet for the items taken. There is a clipboard located on the counter with issue sheets that should include the following:

○ part number ○ an accurate description of the item ○ where the material is being used ○ printed name ○ initials

If the user is unsure of the part number, it is very important that a complete and accurate description of the item must be provided.

● Any material taken off the yard must be written down when the items are taken. All tags for items must be turned in as well.

○ Warehouse staff will contact the entering employee on the next business day to review the items that were taken before they are entered into the tracking system.

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○ Any material obtained after hours should be kept to a minimum and not become a regular occurrence.

○ Be sure that the warehouse door is closed and locked and the yard gate is closed before leaving every time. Warehouse doors and the yard gate must never be left open when unattended.

XII. After Hours Scheduled Work A material that is needed for work scheduled for after warehouse hours must be obtained before the close of the business day prior to the work being done.

XIII. Contractors and/or Storm Relief Contractors Contracting crews and storm relief contractors that are hired by the town should be brought by the warehouse and have the material obtaining procedures explained before they start work. The contracting crew should have the town supervisor or designated personnel obtain all material, if possible. If a contracting crew is unable to be accompanied by town personnel, they must have a designated person (preferably the crew supervisor) to obtain material. The contractors (if unaccompanied by town personnel) must check in at the warehouse before entering the yard to obtain material. A member of the warehouse staff will then accompany them to obtain material. Contracting crews may not obtain material after hours unless accompanied by a town employee. The procedures outline in After Hours Emergencies (Sec. 5, XI) should then be followed. Any material obtained after hours must be kept to a minimum and not become a regular occurrence. For storm relief there will be a warehouse staff member at the warehouse for the duration that storm crews are working. Storm relief causes a chaotic situation, but it is critical that all material is accounted for the town to be reimbursed by FEMA or any other agency.

XIV. Yard Organization The warehouse staff tries to keep the yard as clean and organized as possible within the limited space that is available. All crews are to pick up after themselves. This includes the proper disposal of any trash or debris from obtaining materials (i.e. the paper wrapping for wire reels, wooden reels, boxes, etc.). All returned items must be returned to the proper place. If the proper place is unknown, consult the warehouse staff for advice. This ensures stock is properly tracked and prevents pickup of the wrong item.

XV. OSHA Compliance It is the intention of the warehouse staff to provide a safe and hazard free working environment. Staff must do the following:

● All Material Data Safety Sheets for items stored in the warehouse must be kept in the proper book located on the warehouse counter. 95

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● All material is to be stored in a safe manner. No aisle in the warehouse should ever be blocked unless a warehouse staff member is working in the aisle at the time.

● All pallets, lifts, handcarts, or stock shall be put in its proper location before a warehouse staff member leaves the warehouse.

● Staff members shall use extra caution when lifting heavy and/or awkward objects, using proper lifting technique. If there is any question about the size or weight of an object, seek assistance.

● All fire extinguishers and exit lights are to be checked and signed off on by two members of the warehouse staff once a month.

● Anyone operating the forklifts must be certified by the Town of Wake Forest. ● The Risk Manager will assist anyone needing to become certified for forklift operation. ● Forklifts will be checked every day before operation and a maintenance checklist must be

completed. ● If forklifts are needed after hours, it will be the responsibility of the person using it to be

certified and complete a visual inspection before operation. ● Any accident that occurs while another department is using the forklifts needs to be

reported immediately to warehouse staff and to their supervisor. ● Warehouse employees must report any accident immediately to the Purchasing Manager.

XVI. Uniforms When employees are hired, they will be issued uniforms along with personnel protection equipment. The warehouse will keep a log of all the uniforms and personnel protection equipment issued to employees. Employees must sign a receipt form when items are issued. When an employee leaves their position with the town, all issued uniforms and equipment must be returned before receipt of their last paycheck is possible. Any special items such as tools, climbing gear, high voltage gloves, etc., must be turned in to the former employees’ supervisor. The uniforms and equipment need to be turned into the warehouse. Uniforms and protective equipment will be counted and verified by the warehouse staff and results will be communicated to Human Resources for release of the last paycheck.

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APPENDIX I: SAMPLES OF NECESSARY FORMS (All Forms will be located in the Purchasing folder on the wfcommon drive)

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New Vendor Setup Form

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Glossary Bid: A multi-step process required of the Town by North Carolina General Statutes. Quotes from three (3) separate vendors are required during any bid process. Informal bid: Purchase of apparatus, supplies, materials, or equipment costing more than $30,000 but less than $90,000; and Construction or repair contracts costing more than $30,000 but less than $500,000. Formal Bid: Purchase of apparatus, supplies, materials, or equipment costing more than $90,000; and construction or repair work costing $500,000 or more. Quote: An estimated price for a job or service, either written or verbal. Town policy suggests three (3) quotes should be obtained before making purchases of $30,000 and should contain all information outlined in purchase orders. Requisition: Requisitions are the first step for issuing a purchase order from the Purchasing Division and allow the Purchasing Division to ensure there are sufficient funds in the particular account to charge the requested goods or services. Purchase Order: Purchase orders provide documentation of the goods to be purchased, services to be performed or construction work to be performed. Procurement Card (P-Card): Credit card issued by SunTrust to the Town of Wake Forest for use in making direct purchases from vendors. Vendor: Goods and services providers, preferably local if possible. The Purchasing Division maintains a vendor file for recording the performance of vendors with which the Town has done business. Petty Cash: Petty cash may be used when an employee incurs an expense where they use their own money. The limit for petty cash is set at $50. Sole Source: A "no-bid contract" or "sole source contract" is a contract in the formal bid range that is awarded without competitive bidding. In the event only one vendor is found capable of providing a specific good or service, the formal bidding procedures outlined in this purchasing policy may be waived by the Board of Commissioners. Mini Brooks Act: Qualification based selection procedure for architects, engineers, surveyors, construction managers at risk or design-build contractors. This is also referred to as the QBS procedure.

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-275Submitted by: Jonathan Jacobs Submitting Department: Engineering Meeting Date: August 6, 2019

SUBJECTCapital Boulevard (US-1) Improvements Update and Service Road Discussion

Recommendation:Recommendation to proceed as presented

Item Summary:

ATTACHMENTS 08062019 BOC Agenda Summary.docx

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Agenda Item: Capital Boulevard (US-1) Improvements Update and Service Road Discussion

Summary: NCDOT is upgrading Capital Boulevard, Project U-5307, to a controlled access facility. With that, many new Service Roads will be constructed. Staff would like to present these service road cross-sections to the board and provide an update on the project status.

Attachments: Powerpoint Presentation

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Board of Commissioners Work Session AgendaItem Report

Agenda Item No.: 2019-245Submitted by: Deeda Harris Submitting Department: Administration Meeting Date: August 6, 2019

SUBJECTReview of the draft agenda for the August 20, 2019 meeting.

Recommendation:

Item Summary:

ATTACHMENTS 8-20-19-draft_agenda-updated.docx

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Wake Forest Board of CommissionersMeeting Agenda

August 20, 2019 at 7:00 PM

Call to Order

Pledge of Allegiance

1. Approval of Agenda

2. Approval of Minutes

2.A. Approval of Minutes for Meeting held July 16, 2019 (Regular Board of Commissioners Meeting).

3. Presentations

3.A. Resolution Recognizing Bryan Smith on his Retirement

3.B. Proclamation Recognizing September 22-28 as "Diaper Need Awareness Week" in the Town of Wake Forest"

3.C. Proclamation Recognizing Constitution Week - September 17-23, 2019

3.D. Proclamation Recognizing Good Neighbor Day - Sept. 21, 2019

3.E. Presentation of authorized annual budget of eligible capital projects for public art for fiscal year 2019-2020

4. Public hearings / Public Comment

4.A. Public hearing on a petition requesting contiguous annexation submitted by Wegmans Food Markets Inc for property located near the 500 block of Dr. Calvin Jones Highway, being Wake County Tax PIN 1830-86-5681 and adjacent rights-of-way

4.B. Public hearing on a petition requesting contiguous annexation submitted by Richard Fecteau and Edward Schwerin Jr for property located at 0, 3700, 3712, and 3716 Rogers Branch Road, being Wake County Tax PINs 1749-68-8558, 1749-78-1509, 1749-78-4712, and 1749-78-2560, and adjacent rights-of-way

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Wake Forest Board of CommissionersAugust 20, 2019 Page 2

4.C. Public Comment: If anyone would like to address the Board of Commissioners on an item other than a public hearing item during the time of public comment, please sign up with the Town Clerk prior to the meeting. Each speaker is asked to limit comments to 5 minutes. Please provide the clerk with copies of any handouts you have for the Board. Although the Board is interested in hearing your concerns, speakers should not expect Board action or deliberation on subject matter brought up during the Public Comment segment. Topics requiring further investigation will be referred to the appropriate Town Staff and may be scheduled for a future agenda. Thank you for your consideration of the Board of Commissioners, staff and other speakers.

5. Consent Agenda

(A Consent Agenda is a group of items passed with a single motion and vote. These matters are of a generally routine nature. No debate is allowable on any item included on the Consent Agenda. If a Commissioner or any citizen of Wake Forest or its ETJ wants separate consideration of any item, it may be removed from the Consent Agenda by request.)

5.A. Approval of Resolution of Intent to permanently close a portion of unimproved Brewer Circle

5.B. Approval of Supplemental CEI Contract with AECOM for Priority Pedestrian Corridors Project

5.C. Approval of a resolution to accept a petition requesting contiguous annexation submitted by: Tryon Investment Partners II, LLC; Pearce Heirs Farm, LLC; Farm, LLC; Herman Pearce Jr.; Eva Lillie Pearce Clontz; Floyd Josepth Clontz Jr.; Marthan Neville and Ronnie Harris; and Pensco Trust Company Custodian FBO for property near the 1700 block of Averette Rd., being Wake Co. Tax PINs 1860-38-0871, 1860-18-5168, 1860-19-9349 (portion), 1850-89-9787, 1860-47-1343, 1860-48-0783, 1860-09-3411, 1860-09-2629, 1861-40-7052 and adjacent rights-of-way

5.D. Approval of Resolution in Appreciation of Services of Outgoing Youth In Government Advisory Board Members

5.E. Approval of a contract to Stewart for the Community Plan Update

6. Legislative Items

7. Planning Items

7.A. Consideration of Approval of On-Call Construction, Engineering & Inspection Services Shortlist for Planning & Public Works 115

Wake Forest Board of CommissionersAugust 20, 2019 Page 3

7.B. Consideration of Approval of On-Call Right-of-Way Services Shortlist for Planning & Public Works

7.C. Consideration of Approval of On-Call Planning, Design & Engineering Services Shortlist for Planning & Public Works

7.D. Consideration of Approval of a Resolution to Accept a Certified Local Government Grant Award from the State Historic Preservation Office for the Wake Forest Architectural Survey Update (1958-1975)

7.E. Consideration of an extension request submitted by Harris Engineering for the subdivision Stonegate at St. Andrews, specifically expired cases RZ-16-01 and RZ-16-07

7.F. Consideration of Action on LEGISLATIVE CASE RZ-19-06, Groves Edge: Request filed by Alliance Group of NC to rezone approximately 29.28 acres located near the 500 block of Dr. Calvin Jones Hwy from Rural Holding District (RD) to Neighborhood Mixed Use Conditional District (NMX CD), being Wake County Tax PINs 1830-76-3187 and 1830-87-2437

7.G. Consideration of Action of LEGISLATIVE ITEM TA-19-02 Text Amendment to the Unified Development Ordinance for the purpose of amending Chapter 11 Signs and Section 15.15 Conditional Districts

7.H. Consideration of Action on LEGISLATIVE CASE RZ-19-01, Meridian at Rogers Branch: Request filed by NorthView Partners to Rezone 12.31± Acres located at 0, 3700, 3712, and 3716 Rogers Branch Road from Residential-30 (R-30) to Residential Mixed-Use Conditional District (RMX-CD) being Wake County Tax Pins: 1749-68-8558, 1749-78-1509, 1749-78-4712, and 1749-78-2560

7.I. Consideration of Action on LEGISLATIVE CASE RZ-19-05, Brewer Circle Subdivision: Request filed by Town of Wake Forest to Rezone 2.37± Acres located at Brewer Circle, N. Allen Road, and Best Avenue from General Residential 3 (GR3) to General Residential 5 Conditional District (GR5-CD) being Wake County Tax Pins: 1841-81-0172, 1841-81-0204, and 1841-71-8334

8. Administration and Financial Items

8.A. Consideration of approval of updated Purchasing Policy

8.B. Consideration of resolution approving of offer from TING Fiber, Inc. for property located on East Holding Avenue

8.C. Consideration of resolution approving an offer from Mr. Chris Jorgensen to purchase a portion of property from the Town of Wake Forest located at 225 S 116

Wake Forest Board of CommissionersAugust 20, 2019 Page 4

Taylor Street, Wake Forest, North Carolina. The property to be conveyed is approximately 0.020 acres in size and is a portion of Wake County PIN# 1841507604 currently shown as approximately 5.91 acres

9. Public Services Items

10. Parks and Recreation Items

11. Public Safety Items

12. Other Business

12.A. Wake Co. Tax Releases

12.B. Monthly Report

12.C. Commissioner Reports

13. Adjournment

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