I see static/ here themes/ezhil/static/.
Does that look right?
Hello @Geoff_Langenderfer. I moved your reply here, as its own question. Feel free to edit the title and body as necessary.
Yes.
If you are asking another question, for instance what happens when a local static folder exists AND a themes static folder, then clarify your question 
Static directories overwrite each other. First comes the themes static directory, your local is copied over that.