01031989161
SOUTH CENTRAL WATER AND SEWER DISTRICT, JANUARY 3, 1989
The Harnett County board of Commissioners sitting as the governing body of
South Central Water and Sewer District of Harnett County met January 3, 1989,
in the County Office Building, Lillington, North Carolina, with the following
members present: Rudy Collins, Bill Shaw, Mack Reid Hudson, Mayo Smith, and
Chairman Lloyd G. Stewart presiding. Others present were: Dallas H. Pope,
County Manager; W. Glenn Johnson, County Attorney; Vanessa W. Young, Clerk to
the Board; and Kay S. Blanchard, Recording Secretary.
Chairman Stewart called the meeting to order at 12 noon.
LETTER OF COND. Rodney M. Tart, Director, Public Utilities, presented for consideration a
Letter of Conditions and related agreements regarding sewer project funding
for the Bunnlevel area. Commissioner Shaw made a motion to approve the Letter
of Conditions and related agreements. Commissioner Smith seconded the motion
and it passed with a unanimous vote. The Letter of Conditions is copied in
full at the end of these minutes dated January 3, 1989, as document No. 1.
RESOL. RE: Rodney M. Tart, Director, Public Utilities, presented for consideration a
LEGAL SERVICE resolution authorizing execution of a legal service agreement between the
AGREEMENT District and John M. Phelps, II, Attorney. Commissioner Shaw made a motion to
adopt the resolution. Commissioner Collins seconded the motion and it passed
With a unanimous vote. The resolution is copied in full at the end of these
minutes dated January 3, 1989, as document No. 2.
ADJOURNMENT
DOCUMENT NO. 1.
There being no further business, the Harnett County Board of Commissioners
sitting as the governing body of South Central Water and Sewer District, duly
adjourned at 12:15 p.m.
United States
Department of
Agriculture
tewart, Chairman
,i I
Kay S. Blanchard, Recording Secretary
Vanessa W. Young, Cle
Farmers Home Administration
4001 Carya Drive, Suite 8
Raleigh, North Carolina 27610
December 12, 1988
Lloyd Stewart, Chairman
South Central Water & Sewer District
PO Box 759
Lillington, North Carolina 27546
Dear Mr. Stewart:
This letter establishes conditions which must be understood
and agreed to by you before further consideration may be
given to your application.
This letter is not to be considered as loan approval or as a
representation as to the availability of funds. The docket
may be completed on the basis of a loan not to exceed
$191,000.00 and a development grant not to exceed
$371,000.00. If FmHA makes the loan, the interest rate will
be that charged by FmHA at the time of the loan approval.
If FmHA makes the loan, you may make a written reguest that
the interest rate be the lower of the rate in effect at the
time of loan approval or the time of loan closing. If you
do not request the lower of the two interest rates, the
interest rate charged will be the rate in effect at the time
of loan approval. The loan will be considered approved on
the date a signed copy of form FmHA 1940 -1, " Request for
Obligation of Funds," is mailed to you. If you want the
lower of the two rates, your written reguest should be
submitted to FmHA as soon as practical. In order to avoid
possible delays in loan closing such a request should
ordinarily be submitted at least 30 calendar days before
loan closing.
Any changes in project costs, source of funds, scope of
services or any other significant changes in the project or
applicant must be reported to and approved by FmHA by
written amendment to this letter. Any changes not approved
by FmHA shall be cause for discontinuing processing of the
application.
Please complete and return the attached Form FmHA 442 -46, if
you desire that further consideration be given your
application.
162
If the conditions set forth in this letter are not met
within 12 months from the date hereof, FmHA reserves the
right to discontinue the processing of the application.
1. REPAYMENT SCHEDULE
The insured loan will be scheduled for repayment over a
period not exceeding 40 years. Each installment
will be due June 1 with the first installment due the
first June 1 following the date of loan closing or
delivery of the bond. The first two installments will
be interest only installments.
INTERIM FINANCING
The District will obtain temporary construction
financing in accordance with FmHA Instruction
10942.17 <n)(2). The District will contact the North
Carolina Local Government Commission and arrange to
obtain interim credit through the sale of Bond
Anticipation Notes.
SECURITY
Security for the loan will consist of a general
obligation sewer bond authorized and prepared in
accordance with FmHA Instruction 1942 —A. Farmers Home
Administration will negotiate the purchase of the bond
with the District and the North Carolina Local
Government Commission. The Commission reserves the
right to require a public offering of the bond.
ORGANIZATION
The District must provide the necessary certification,
comments, and recommendations concerning its
organization and authority to issue bonds which should
include the following:
a. Compliance with special laws and regulations.
b. State Pollution Control on Environmental Protection
Agency Standards.
c. Consistency with other development plans.
d. State agency regulating water rights.
e. National historic preservation.
f. Civil Rights Act of 1964.
g. Architectural Barriers of 1968.
(Refer to FmHA Instruction 1942.17(k)
5: ACCOUNTING,, AUDITS: AND REPORTS
Accounting and auditing will be established and
maintained in accordance with the requirements of North
Carolina General Statutes. The District is to provide
FmHA a copy of their Audit Contract. A copy of the
annual audit report will be provided FmHA to accordance
with North Carolina Instruction 1942.17(q) and the
requirements of OMB Circular A -128.
6. INSURANCE AND BONDING
Insurance and bonding must be obtained as required by
North Carolina State Statues. The District will
furnish a certificate concerning the adequacy of
insurance and bonding.
The District will provide fidelity bond coverage for
the positions of officials entrusted with the receipt
and disbursement of its funds and the custody of
valuable property. The amount of the bond will be at
least equal to the maximum amount of the money that the
District will have on hand at any time, exclusive of
loan funds deposited in a supervised bank account.
The District will provide FmHA a copy of their fidelity
bond.
The public ! liability and property damage insurance
requirement should be discussed with the District and
their attorney and the amounts established accordingly.
Fire and extended coverage should be in an amount equal
to the replacement value on all above ground
structures, including District owned equipment and
machinery housed therein.
163
7. FINAL PLANS AND CONSTRUCTION CONTRACT DOCUMENTS
Final plans must conform essentially with the project
described in the Preliminary Engineering Report on
which the project is funded. Should the project be
changed (pipe sizes, method of treatment, etc.) which
will result in increasing the project cost or operating
budget, the FmHA must be notified and a revised
Preliminary Engineering Report with the new budget must
be submitted. Any changes not approved by FmHA shall
be cause for discontinuing processing of the
application.
The construction contract documents must be completed
in accordance with FmHA Instruction 1942 —A, Subsection
1942.18. The District and engineer must consider all
materials suitable for the project. The engineer must
specify all materials normally used. Contracts must be
awarded on the basis of the lowest bid acceptable
material. Concurrence by the FmHA State Office
Engineer must be obtained prior to negotiating with
contractors subsequent to opening bids. FmHA contracts
and bid documents should be used for projects jointly
funded with other agencies.
8. LOAN RESOLUTION
The District must formally adopt Form 1942 -47, Loan
Resolution, at a proper meeting of the governing body.
Adoption of this document should be made a part of the
official minutes of the District. Forms FmHA 400 -1,
Equal Opportunity Agreement, and FmHA 400 -4, Assurance
Agreement, are to be formally adopted at the same
meeting.
9. OPERATING BUDGET AND SEWER RATE SCHEDULE
A Sewer system operating budget must be adopted by the
applicant after approval by Farmers Home
Administration. A Sewer rate schedule must be adopted
which will provide sufficient revenue to meet the
requirements of the operating budget.
10. RULES AND REGULATIONS
Sewer system Rules and Regulations must be submitted to
Farmers Home Administration for approval prior to loan
closing.
11. GRADUATION
The District will refinance the unpaid balance, in
whole or in part, of its debt upon the request of the
Government if at any time it should appear to the
Government that the District is able to refinance it
notes /bonds by obtaining a loan for such purposes from
responsible cooperative or private sources at
reasonable rates and terms.
12. CLOSING INSTRUCTIONS
The loan will be closed in accordance with instructions
issued by the Office of the General Counsel and
applicable FmHA and State procedures.
13. EXCESS FUNDS
If there is a significant reduction in project cost as
a result of re— design or bids received, the District
funding needs will be reassessed before loan closing or
start of construction, whichever occurs first.
Obligated loan or grant funds not needed to complete
the proposed project will be deobligated. Grant funds
are deobligated first.
14. DISTRICT'S CONTRIBUTION
The District is to deposit $18,100.00 in the
construction account prior to loan closing or the start
of construction, whichever occurs first. These funds
are considered to be expended first and are to be used
with other funds to complete the funding of the
proposed project.
15. ORDER OF FUND EXPENDITURE
The District's contribution shall be considered as the
first funds expended. After providing for all
authorized costs, any remaining FmHA project funds will
be considered to be FmHA grant funds and refunded to
FmHA. If the amount of unused FmHA project funds
exceeds the FmHA grant, that part would be FmHA loan
funds.
16. GRANT ASSISTANCE
Prior to loan closing or start of construction,
whichever occurs first, the District must provide
evidence of the Grant Funds being available from EPA.
164
17. GRANT AGREEMENT
The District must adopt Form FmHA 1942 -31, Association
Water and Sewer System Grant Agreement, at a proper
meeting of the governing body. Adoption of this
document should be made a part of the official minutes
of the District. Attached is a copy of Form FmHA 1942-
31, Association Water or Sewer System Agreement for
your review. You will be required to execute a
completed form at the time of grant. closing.
18. The District agrees that, in the event of deficiencies
in development, design, or construction of the
project or any part thereof, the District will take
the required administrative or legal action to
secure financial compensation from the engineer,
contractor or attorney as appropriate for any
necessary cost to restore the project or defective
part to a level of service equal to that expected
for normal design and /or construction and legal
services ".
19. The District will obtain a wastewater treatment
contract from the County of Harnett that will provide
for the treatment of the wastewater from the
Bun'nlevel Community Project. This contract is to be
prepared and approved by Farmers Home Administration
prior to loan closing or start of construction
whichever occurs first.
20. All applicable items set out in Form FmHA 442 -13,
Processing Checklist, Public Body, apply to this
project and become apart of the Letter of Conditions.
Sincerely,
7)JACKIE E. MCLAMB
District Director
Enclosures
Form FHA 442-46
(Rev. 1 -9 -69)
UNITED STATES DEPARTMENT OF AGRICULTURE
FARMERS HOME ADMINISTRATION
LETTER OF INTENT TO MEET CONDITIONS
TO: Farmers Home Administration
United States Department of Agriculture
4001 Carya Drive, Suite E
Raleigh, NC 27610
(County Office Address)
.6u.wt etc,. -t
�6lcu CCi UuA
Date JANUARY 3, 1989
We have reviewed and understand the conditions set forth in your letter dated
December 12, 1989
It is our intent to meet all of them not later than Oct oher 1, 1989
BECAUSE OF RECENTLY PASSED LEGISLATION, SOUTH CENTRAL WATER & SEWER DISTRICT
ELECTS TO HAVE THE INTEREST RATE CHARGED BY F7nHA TO BE THE LOWER OF THE RATE IN EFFECT
AT EITHER THE TIME OF LOAN APPROVAL OR LOAN CLOSING.
SOUTH CENTRAL WATFR & SFWRR DISTRICT
(Name of Association)
BY
CIIA1 R "IAN
(TitIe)
Form FmHA 1942 -31
(4 -85)
UNITED STATES DEPARTMENT OF AGRICULTURE
FARMERS HOME ADMINISTRATION
ASSOCIATION WATER OR SEWER SYSTEM GRANT AGREEMENT
FORM APPROVED
OM R No. OS 75 -0074
Expiration date available upon request.
THIS AGREEMENT dated_ January 3
South Central Water & Sewer District
-., 19 89 _ , between .___
a public corporation organized and operating under and General Sta [u[es of the
State of North Carolina
(Authorizing Statute)
herein called "Grantee," and the United States of America acting through the Farmers Home Administration, Department of
Agriculture, herein called "Grantor,' WITNESSETH:
WHEREAS
Grantee has determined to undertake a project of acquisition, construction, enlargement, or capital improvement of a (water)
(sewer) system to serve the area under its jurisdiction at an estimated cost of S -_1 , 160 =900 and has duly authorized
the undertaking of such project.
Grantee is able to finance not more than s _789•900 ___ of the development costs through revenues, charges,
taxes or assessments, or funds otherwise available to Grantee resulting in a reasonable user charge.
Said sum of S 789 900
has been committed to and by Grantee for such project development costs.
Grantor has agreed to grant the Grantee a sum not to exceed S. 7.1.190P____ or _31_96.____ percent of said develop-
ment costs, whichever is the lesser, subject to the terms and conditions established by the Grantor. Provided, however, that
the proportionate share of any grant funds actually advanced and not needed for grant purposes shall be returned immediately
to the Grantor. The Grantor may terminate the grant in whole, or in part, at any time before the date of completion, when-
ever it is determined that the Grantee has failed to comply with the conditions of the grant.
NOW, THEREFORE, In consideration of said grant by Grantor to Grantee, to be made pursuant to Section 306 (a) of
the Consolidated Farm and Rural Development Act for the purpose only of defraying a part not to exceed 31_90 -
percent of the development costs, as defined by applicable Farmers Home Administration instructions.
GRANTEE AGREES THAT GRANTEE WILL:
A. Cause said project to be constructed within the total sums available to it, including said grant, in accordance with the
project plans and specifications and any modifications thereof prepared by Grantee and approved by Grantor.
B. Permit periodic inspection of the construction by a representative of Grantor during construction.
C. Comply with all applicable state and federal laws and regulations and manage. operate and maintain the system, includ-
ing this project if less than the whole of said system, continuously in an efficient and economical manner.
D. Make the services of said system available within its capacity to all persons in Grantee's service area without discrirnina-
tion as to race, color, religion, sex, national origin, age, marital status, or physical or mental handicap (possess capacity to
enter into legal contract for services) at reasonable charges, including assessments, taxes, or fen in accordance with a schedule
of such charges, whether for one or more classes of service, adopted by resolution date _lanuarg_3_ , 19 88—, as may
be modified from time to time by Grantee. The initial rate schedule must be approved by Grantor. Thereafter, Grantee may
make such modifications to the rate system as long as the rate schedule remains reasonable and nondiscriminatory.
The Information collected through the grant agreement Is required to obtain • construction development gran and Is used to
d.rwmin• that the grant funds are used for •uthorired program purposes.
E. Adjust its operating costs and service charges from time to time to provide for adequate operation and maintenance,
emergency repair reserves, obsolescence reserves, debt service and debt service reserves.
F. Expand its system from tine to time to meet reasonably anticipated growth or service requirements in the area within
its jurisdiction.
G. Provide Grantor with such periodic reports as it may require and permit periodic inspection of its operations by a
representative of the Granror.
H. To execute Forms FmHA 400 -1, "Equal Opportunity Agreement." and FmHA 400 -4, "Assurance Agreement," and
any other agreements required by Grantor which Grantee is legally authorized to execute. If any such forms have been
executed by Grantee as a result of a loan being made to Grantee by Grantor contemporaneously with the making of this
Grant, another form of the same type need not be executed in connection with this Grant.
1. Upon any default under its representations or agreements set forth in this instrument, or in the instrutnents incident to
the awarding of the grant, Grantee, at the option and demand of Grantor, to the extent legally permissible, will repay to
grantor forthwith the original amount of the grant received with the interest accruing thereon from the date of default at
the market rate for water and waste disposal loan assistance in effect on the date hereof or at the time the default occurred,
whichever is greater. Default by the Grantee will constitute termination of the grant thereby causing cancellation of Federal
assistance under the grant. The provisions of this Grant Agreement may be enforced by Grantor, at its option and without
regard to prior waivers by it of previous defaults of Grantee. by judicial proceedings to require specific performance of the
terms of this Grant Agreement or by such other proceedings in law or equity, in either Federal or State courts, as may be
deemed necessary by Grantor to assure compliance with the provisions of this Grant Agreement and the laws and regula-
tions under which this grant is made.
J. Return immediately to Grantor, as required by the regulations of Grantor, any grant funds actually advanced and not
needed by Grantee for approved purposes.
K. Use the real property including land, land improvements, structures, and appurtenances thereto, for authorized pur-
poses of the grant as long as needed.
1. Tide to real property shall vest in the recipient .subject to the condition that the Grantee shall use the real property
for the authorized purpose of the original grant as long as needed.
2. The Grantee shall obtain approval by the Grantor agency for the use of the real property in other projects when
the Grantee determines that the property is no longer needed for the original grant purposes. Use in other projects shall
be limited to those under other Federal grant programs or programs that have purposes consistent with those authorized
for support by the Grantor.
3. When the real property is no longer needed as provided in 1 and 2 above, the Grantee shall request disposition
instructions from the Grantor agency or its successor Federal agency. The Grantor agency shall observe the following
rules in the disposition instructions:
(a) The Grantor may be permitted to retain title after it compensates the Federal Government in an amount com-
puted by applying the Federal percentage of participation in the cost of the original project to the fair market value
of the property.
(b) The Grantee may be directed to sell the property under guidelines provided by the Grantor agency and pay the
Federal Government an amount computed by applying the Federal percentage of participation in the cost of the
original project to the proceeds from sale (alter deducting actual and reasonable selling and fix -up expenses. if any,
from the sale proceeds). When the Grantee is authorized or required to sell the property, proper sales procedures shall
be established that provide for competition to the extent practicable and result in the highest possible return.
(c) The Grantee may be directed to transfer title to the property to the Federal Government provided that in such
cases the Grantee shall be entitled to compensation computed by applying the Grantee's percentage of participation
in the cost of the program or project to the current fair market value of the property.
This Grant Agreement covers the following described real property (use continuation sheets as necessary).
All Rights —of —Ways or Easements that are obtained by the District by negotiations,
condemination, or purchase of existing systems; pump sites and meter vault site.
166
L. Abide by the following conditions pertaining to nonexpendable personal property which is furnished by the Grantor or
acquired wholly or in part with grant funds. Nonexpendable personal property means tangible personal property having a
useful life of more than one year and an acquisition cost of 3300 or more per unit. A Grantee may use its own definition of
nonexpendable personal property provided such definition would at least include all tangible personal property as defined
above.
1. Use of nonexpendable property.
(a) The Grantee shall use the property in the project for which it was acquired as long as needed. When no longer
needed for the original project, the Grantee shall use the property in connection with its other Federally sponsored
activities, if any, in the following order of priority:
(1) Activities sponsored by the FmHA.
(2) Activities sponsored by other Federal agencies.
(b) During the time that nonexpendable personal property is held for use on the project for which it was acquired,
the Grantee shall make it available for use on ocher projects if such other use will not interfere with the work on the
project for which the property was originally acquired. First preference for such other use shall be given to FmHA
sponsored projects. Second preference will be given to other Federally sponsored projects.
2. Disposition of nonexpendable property. When the Grantee no longer needs the property as provided in paragraph (a)
above, the property may be used for other activities in accordance with the following standards:
(a) Nonexpendable property with a unit acquisition cost of less than 31,000. The Grantee may use the property
for other activities without reimbursement to the Federal Government or sell the property and retain the proceeds.
(b) Nonexpendable personal property with a unit acquisition cost of 31,000 or mare. The Grantee may retain
the property for other uses provided that compensation is made to the original Grantor agency or its successor. The
amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the
original project or program to the current fair market value of the property. If the Grantee has no need for the prop-
erty and the property has further use value, the Grantee shall request disposition instructions from the original Grantor
agency.
The Grantor agency shall determine whether the property can be used to meet the agency's requirements. If no require-
ment exists within that agency, the availability of the property shall be reported, in accordance with the guidelines
of the Federal Property Management Regulations (FPMR), to the General Services Administration by the Grantor
agency to determine whether a requirement for the property exists in other Federal agencies. The Grantor agency shall
issue instructions to the Grantee no later than 120 days after the Grantee request and the following procedures shall
govern:
(1) If so instructed or if disposition instructions are not issued within 120 calendar days after the Grantee's
request, the Grantee shall sell the property and reimburse the Grantor agency an amount computed by applying
to the sales proceeds the percentage of Federal participation in the cast of the original project or program. How-
ever, the Grantee shall be permitted to deduct and retain from the Federal share $100 or ten percent of the proceeds,
whichever is greater, for the Grantee's selling and handling expenses.
(2) If the Grantee is instructed to ship the property elsewhere the Grantee shall be reimbursed by the benefitting
Federal agency with an amount which is computed by applying the percentage of the Grantee participation in the
cost of the original grant project or program to the current fair market value of the property, plus any reasonable
shipping or interim storage costs incurred.
(3) If the Grantee is instructed to otherwise dispose of the property, the Grantee shall be reimbursed by the
Grantor agency for such costs incurred in its disposition.
3. The Grantee's property management standards for nonexpendable personal property shall also include:
(a) Property records which accurately provide for: a description of the property; manufacturer's serial number or
other identification number; acquisition date and cost; source of the property; percentage (at the end of budget year)
of Federal participation in the cost of the project for which the property was acquired; location, use and condition
of the property and the date the information was reported; and ultimate disposition data including sales price or the
method used to determine current fair market value if the Grantee reimburses the Grantor for its share.
(b) A physical inventory of property shall be taken and the results reconciled with the property records at least
once every two years to verify the existence, current utilization, and continued need for the property.
(c) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the prop-
erty. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented.
(d) Adequate maintenance procedures shall be implemented to keep the property in good condition.
(e) Proper sales procedures shall be established for unneeded property which would provide for competition to the
extent practicable and result in the highest possible return.
This Grant Agreement covers the following described nonexpendable property (use continuation sheets as necessary).
All collection and transport lines, meter and meter vault, interceptor tanks,.
S.T.E.P. pumps, etc., and all other facilities constructed or purchased by the
District as a part of its sewer facility.
•
M. Provide Financial Management Systems which will include:
1. Accurate, current, and complete disclosure of the financial results of each grant. Financial reporting will be on an
accrual basis.
2. Records which identify adequately the source and application of funds for grant-supported activities. Those records
shall contain information pertaining to grant awards and authorizations, obligations,lunobligatcd balances, assets, liabilities,
outlays, and income.
3. Effective control over and accountability for, all funds, property and other assets. Grantees shall adequately safe-
guard all such assets and shall assure that they are used solely for authorized purposes. '
4. Accounting records supported by source documentation.
N. Retain financial records, supporting documents, statistical records, and all other records pertinent to the grant for a
period of at least three .years after grant closing except that the records shall be retained beyond the three -year period if
audit findings have not been resolved. Microfilm copies may be substituted in lieu of original records. The Grantor and the
Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books,
documents, papers, and records of the Grantee's government which arc pertinent to the specific grant program for the purpose
of making audits, examinations, excerpts and transcripts.
O. Provide information as requested by the Grantor to determine the need for and complete any necessary Environ-
mental Impact Statements.
P. Provide an audit report prepared in sufficient detail to allow the Grantor to determine that funds have been used in
compliance with the proposal, any applicable laws and regulations and this Agreement.
Q. Agree to account for and to return to Grantor interest earned on grant funds pending their disbursement for program
purposes when the Grantee is a unit of local government or a nonprofit organization. States and agencies or instrumentali-
ties of states shalt not be held accountable for interest earned on grant funds pending their disbursement.
R. Not encumber, transfer or dispose of the property or any part thereof, furnished by the Grantor or acquired wholly
or in part with Grantor funds without the written consent of the Grantor except as provided in items K and L above.
S. Include in all contracts for construction or repair a provision for compliance with the Copeland"Anti-Kick Back"
Act (18- U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR, Part 3). The Grantee shall report all
suspected or reported violations to the Grantor.
T. In construction contracts in excess of 32,000 and in other contracts in excess of 32,500 which involve the employ-
ment of mechanics or laborers, to include a provision For compliance with Sections 103 and 107 of the Contract Work Hours
and Safety Standards Act (40 U.S.C. 327 -330) as supplemented by Department of Labor regulations (29 CFR, Part 5).
U. To include in all contracts in excess of 3100,000 a- provision that the contractor agrees to comply with all the require-
ments of Section 114 of the Clean Air Act (42 U.S.C. §1875C -9) and Section 308 of the Water Pollution Control Act (33
U.S.C. §1318) relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified
in Section 114 of the Clean Air Act and Section 308 of the Water Pollution Control Act and all regulations and guidelines
issued thereunder after the award of the contract. Such regulations and guidelines can be found in 40 CFR 15.4 and 40 FR
17126 dated April 16, 1975. In so doing the Contractor further agrees:
1. As a condition for the award of contract, to notify the Owner of the receipt of any communication from the Environ-
mental Protection Agency (EPA) indicating that a facility to be utilized in the performance of the contract is under
consideration to be listed an the EPA list of Violating Facilities. Prompt notification is required prior to contract award.
2. To certify that any facility to be utilized in the performance of any nonexempt contractor subcontract is not
listed on the EPA list of Violating Facilities pursuant to 40 CFR 15.20 as of the date of contract award.
3. To include or cause to be included the above criteria and the requirements in every nonexempt subcontract and
that the Contractor will take such .aetion as the Government may direct as a means of enforcing such provisions.
167
As used in these paragraphs the term "facility" means any building plan. installation, structure, mine, vessel or other floating
craft. location, or site of operations, owned, leased, or supervised by a Grantee. cooperator, contractor, or subcontractor, to
be utilized in the performance of a grant, agreement. contract, subgrant or subcontract. Where a location or site of operation
contains or includes more than one building, plant, installation, or structure, the entire location shall be deemed to be a
facility except where the Director, Office of Federal Activities, Environmental Protection Agency, determines that inde-
pendent facilities are co- located in one geographical area.
V. The following clause is applicable to nonprofit organizations:
As a condition of this Grant or Cooperative Agreement, the recipient assures and certifies that it is in compliance
with and will comply in the course of the Agreement with all applicable laws, regulations, Executive Orders and
other generally applicable requirements, including those set out in 7 CFR 3015.2 0504 which hereby are incor-
porated in this Agreement by reference, and such statutory provisions as are specifically set forth herein.
GRANTOR AGREES THAT IT:
A. Will make available to Grantee for the purpose of this Agreement not to exceed t 371 , 000.00
which it will advance to Grantee to meet not to exceed _31_96 percent of the development costs of the project in accor-
dance with the actual needs of Grantee as determined by Grantor.
B. Will assist Grantee, within available appropriations. with such technical assistance as Grantor deems appropriate in
planning the project and coordinating the plan with local official comprehensive plans for sewer and water and with any
State or area plans for the area in which the project is located.
- -. -- —. -- - . .. a.-yuucu as rung as needed. wnen no Longer
needed for the original orojecr, the Grantee shalt use the property in connection with its other Federally sponsored
activities, if any, in the ' wing order of priority:
. C. At its sole discretion and at any time may give any consent, deferment, subordination, release, tatisfactinn, or termina- '
tion of any or all of Grantee's grant obligations, with or without valuable consideration, 'upon such terms and conditions as "
Grantor may determine to be (1) advisable to further the pdr pose of the grant or to protect Grantor's financial interest. ii
therein and (2) consistent with both the statutory purposes of the grant and the limuations of the statutory authority under y,4 ,i
which it is made. +, 4......;{..A........1.......
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TERMINATION OF THIS AGREEMENT x� ' E' asi F "s' I 's1 i 1, V�! .I
This Agreement may be terminated for cause in the event of default on the part of the pt
rantee as provided in paragraph 1� .
above or for convenience of the Grantor and Grantee prior to -the date of completion of the grant purpose. Termination fiat-
convenience will occur when both the Grantee and Grantorvagree that the cbntinuaiion Of the project will not roduce
beneficial results commensurate with the further expenditure of (ands. sk s >:; '? 0 . f
rte.
— IN WITNESS WHEREOF Grantee on the date first above written has caused these presence to be executed by its duly,.
authorized _ boatman_
and attested and its corporated seal affixed by its duly authorized Clerk
'
ATTEST:
By
Clerk
(Title)
Form FmfiA 400-1
(Rev. 7- 19-83)
By
__Ch�.ir.7Ran__
•
'(Title)
UNITED STATES OF AMERICA
FARMERS HOME ADMINISTRATION
District Director
UNITED STATES DEPARTMENT OF AGRICULTURE
FARMERS HOME ADMINISTRATION
EQUAL OPPORTUNITY AGREEMENT
This agreement, dated January 3, 1989
FORM APPROVED
OMB No. 0575 -0018
APPROVAL EXPIRES 4/84
between
South Central Water & Sewer District _-___.--.-,-_.........._.._.........._.._......_ .............. _.._....__.._.._..__. .......
__.
.(herein called "Recipient" whether one or more) and the Farmers Home Administration, United States Department of
Agriculture, pursuant to the rules and regulations of the Secretary of Labor (herein called the 'Secretary') issued under the
authority of Executive Order 11246, as amended, witnesseth:
In consideration of financial assistance (whether by a loan, grant, loan guaranty, or other form of financial assistance)
made or to be made by the Farmers Home Administration to Recipient, Recipient hereby agrees, if the cash cost of construction
work performed by Recipient or a construction contract financed with such financial assistance exceeds 510,000 -- unless
exempted by rules, regulations or orders of the Secretary of Labor issued persuant to Section 204 of Executive Order 11246 of
September 24, 1965.
1. To incorporate or cause to be incorporated into any contract for construction work, or modification thereof, subject
to the relevant rules, regulations, and orders of the Secretary or of any prior authority that remain in effect, which is paid
for in whole or in part with the aid of such financial assistance, the following "Equal Opportunity Clause ":
During the performance of this contract, the contractor agrees as follows:
(a) The contractor will not discriminate against any employee or applicant for employment because of race, color,
religion, sex or national origin- The contractor will take affirmative action to ensure that applicants are employed,
and that employees are treated during employment, without regard to their race, color, religion, sex or national
origin. Such action shall include, but not be limited, to the following: employment, upgrading, demotion or transfer;
recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available
to employees and applicants for employment, notices to be provided by the Farmers Home Administration setting
forth the provisions of this nondiscrimination clause.
(b) The contractor will, in all 'solicitations o. advertisements for employees placed by or on behalf of the connector,
state that all qualified applicants will receive consideration for employment without regard to race, color, religion,
sex or national origin.
(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining
agreement or other contract or understanding, a notice, to be provided by the Farmers Home Administration,
advising the said labor union or workers' representative of the contractor's commitments under this agreement as
required pursuant to section 202(3)— of Executive Order 11246 of September 24, 1965, and shall post copies of the
notice in conspicuous places available to employees and applicants for employment.
(d) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of all rules,
regulations and relevant orders of the Secretary of Labor and of any prior authority which remain in effect.
(e) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965,
rules, regulations, and orders, or pursuant thereto, and will permit access to his books, records, and accounts by the
Farmers Home Administration, Office of Equal Opportunity, U. S. Department of Agriculture, and the Secretary of
Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
(O In the event of the contractor's noncompliance with the Equal Opportunity (Federally Assisted Construction) clause
or with any of the said toles, regulations, or ordes, this contract may be cancelled, terminated, or suspended in
whole or in part and the contractor may be declared ineligible for further Government Contracts or Federally Assisted
construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965,
and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of
September 24, 1965, or by rule, regulation or order of the Secretary of Labor. or as provided by Law.
168
S Jli -r_.
1 =5
(g) The contractor will include the provisions of this Equal Opportunity (Federally Assisted Construction) clause in
every subcontract or purchase order, unless exempted by the rules, regulations, or orders of the Secretary of Labor
issued pursuant to Section 204 of. Executive Order No. 11246 of September 24, 1965, so that such provisions will
be binding upon each such subcontractor or vendor- The contractor will take such action with respect to any
subcontract or purchase order as the Farmers Home Administration may direct as a means of enforcing such
provisions, including sanctions for noncompliance: Provided however that in the event the contractor becomes
involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the
- Farmers Home Administration, the contractor may request the United States to enter into such litigation to protect
the interest of the United States.
2. To be bound by the provisions of the Equal Opportunity Clause in construction work performed by. Recipient and paid
for in whole or in part with the aid of such financial. assistance.
3. To .notify all prospective contractors to. tile the required 'Compliance Statement', Form FHA 400 -6, with their bids.'
4. Form -AD -425, Instructions to Conttactors, will accompany the notice of award of the contract.
Bid conditions for all nonexempt Federal and Federally assisted construction contracts require inclusion of the appropriate
"Hometown" or 'Imposed' -plan affirmative action and equal employment opportunity requirements. All bidders must comply
With the bid conditions contained in the invitation to be considered responsible bidders and benoe eligible for-BO award. -.
5. To assist and cooperate actively with the Farmers Home A,dministretion and the Secretary y -in obtaining the compliance .
of - contractors and subcontractors with the .provisions of the Equal Opportunity Clause and the said rules, regulations, and
orders, '• to 'obtain, and furnish to the Farmers Home Administration and the Secretary, Form AD -560, Certification of
Nonsegregated Facilities, to submit the Monthly Employment Utilization Report, Form CC -257, as. required and with other
information as they may require the supervision of such compliance, and to otherwise assist the Farmers Home Administra-
tion in the discharge of its primary responsibility for-securing compliance. •
6.. To refrain from entering into any contract, or extension or other modification of a contract, subject to such Executive
Order with a contractor debarred from.Govemmertt. contracts or federally. assisted construction contracts pursuant to Part II, •
- 'Subpart D., of such Executive Order or to prior authority; and to carry out such sanctions and penalties for violation of the
provisions: of the. Equal Opportunity Clause as may be imposed upon contractors and subcontractors' by the Fanners Home
Administration or the Secretary pursuant to such Subpart D.
7. That if Recipient fails or refuses to comply with these undertakings, the Fanners Home Administration may take any
or all of the following actions: (a) cancel, terminate, or suspend said financial assistance in whole or in part;(b) refrain
"from extending any further assistance under the program involved until satisfactory assurance of future compliance has been
received from Recipient; and (c) refer the case to the Office of Equal Opportunity, 11. S. Department of Agriculture for
appropriate action. _. ..
Witness the due execution hereof by Recipient on this, the date first above written.
Recipient
(CORPORATE SEAL.)
Attest:
Clerk XRXWMW
fj
Recipient
South Central Water & Sewer District
Name of Corporate Recipient
By
Chairman Pkd'sxd'eIK
-LASO NUMULH
TYPE OF LOAN AND/OR GRAN f:
' 1- Domestic water System 6- cooperatives
O
O L- Wasto Disposal Systems � ]- Indian Tribes or Tribal Cmpordtione
-- I
_X_A Sewage Collection IJ 9 -AC6m
n 9• Watershed IPL`5661
�e Sewage r reatment
❑ 1 DFIOOU Prevention (PL-534 I
�C 501,0 Waste 0 soosal X11 -co nmunily Facilities
_ —D Storm Drainage 01 2-
' r 1 Grants (PL-92-4101
-
- []i 3.e &I (insured)
3- Recreation
G4- c,d„nn
•
0 55. IrY.s Il t , 'rain:I : r Dtbr.r Soil
• PunSrvra!,nn 4.,.•..
FINANCE USE ONLY
ST
38
CO
043.
'BORROWED NO.. '
0561510798
LN
CR
FY
Source of Funds
111 t-Insured El 2- Direct
MA
DP
Type0 Submission: -
DO 1 Iniiel El 2- Subsequent
Type of 'Assistance:
. 0 Leen -
ctO 2 - Grant
'(S] 3 -.Loon B. Grant
Land S6ii led: -
Aaes in Project
Recreational Visitor Day Capacity.
Annual
Number al users directly benefiting I this action:
r g.mm
cesidemial 146 Other 8
Type of Organizetran:
® 1 -.DOTE CJ 2 -Npo-TE
Date of Application:
Date Load and /or Grant Approves:
NAME OF APPLICANT:
SOUTH CENTRAL WATER AND. SEWER DISTP.ICT
ADDRESS: -
PC BOX 759, LILLINCTON, NC 27546
NAME OE COUNTY:
HARNETT
ITEM
- • y - L AMOUNTS IN HUNDRED OF DOLLARS)
CASH CONTRIBUTION
EPA OTHER FHA GRANT
FHA LOAN
TOTALS
I. Development
0 i 0
15 i. 8' I G 8 1 .1 1 0� 3
L
S
7
0 o o
0 1 o
9
1
5 o 1 0
2. Land 'red Rights
I,0 1 0
I 1 0' o I
0 1 0
3
r' t 0 1 0
3
0 I 0 1 0
3. Legal:Services
. 0 1 0
-i_ I
1 0 1 0 I
1 I I
I
-
D p
I
i
11
0 1 0
1
i) ^ 0 p
I
4. Archil } al rcl..'
one Plann,ng5ervice
1 -
1 I i 1
!% : 0 0 1 G !�
i 1 I j
3
4
U
1
l 0 1 0
1 I
?
-
_
I
t 0 1 0
r
-
_ r
0
1 ,
1 0 1 0
S.Imeresi
0 0
1
1
I.° G I
.1-11 I 0 1 0
1
~
I
r; U! 0
1
i
0, 0
6. Equipment
, 0 t 0
; I
1 0 1 0 1
0 � 0
1
7
0 a' 0
1
- 1 0 1 0
,
..
7. Contingencies
r----r I �
.' 0 1 a
, - ! 0 1 0
o 1 I o
I o
I c a
S. Refinancing
I I.
r 0 I 0
I_
"- ! a I a
y
-
o
o
0
a I 0
1 0: 0
I 1
9. Initial .0 &M'
-
' 0, 0
1
1 0, U I
10T
I
0 i 0 �
:
01 0
I
10- Initial Reserve -
I O I O I
I
T 11—
1 ' 0' 0
1 0 0
! 0, 0
0 1 0
11.TOTAL '
-
1
8
1 1 0 I (Tr
1 l
5
8 1
8101 a
I I
3
I'
7
1
0 I0 o
I
1
n
1
O 0 0
I I 1
1
6
G
01 0
9 I
a U.S. GPO:19 81 4 7 6 5-01311 5 31
FHA 442-14 (Re . 11- 15 -73)
16
USDA -FmHA
Form FmHA 4004
(Rev. 8- 29 -79)
Position 3
IWO
ASSURANCE AGREEMENT
(Under Title VI, Cisil Rights Act of 1964)
The __._ _....____South Central Water & Sewer District
._...._.._..._...__._
(name of recipient)
,_.P. O. Box 759,._ Lillington, NC 27546
(address)
( "Recipient" herein) hereby assures the U. S. Department of Agriculture that Recipient is in compliance with and will
continue to comply with Title VI of the Civil Rights Act of 1964 (42 USC 2000d et. seq.), 7 CFR Part 15, and Farmers
Home Administration regulations promulgated thereunder, 7 C.F.R. 41901.202. In accordance with that Act and the
regulations referred to above, Recipient agrees that in connection with any program or activity for which Recipient receives
Federal financial assistance (as such term is defined in 7 C.F.R. 414.2) no person in the United States shall, on the ground of
race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to
discrimination.
1. Recipient agrees that any transfer of any aided facility, other than personal property, by sale, lease or other
conveyance of-contract, shall be, and shall be made expressly, subject to the obligations of this agreement and
transferee's assumption thereof.
2. Recipient shall:
(a) Keep such records and submit to the Government such timely. complete, and accurate information as the
Government may determine to be necessary to ascertain our /my compliance with this agreement and the regulations.
(b) Permit access by authorized employees of the Farmers Home Administration or the U.S. Department of
Agriculture during normal business hours to such books, records, accounts and other sources of information and its
facilities as may be pertinent to ascertaining such compliance.
(c) Make available to users, participants, beneficiaries and other interested persons such information regarding the
provisions of this agreement and the regulations, and in such manner as the Farmers Home Administration or the
U.S. Department of Agriculture finds necessary to inform such persons of the protection assured them against
discrimination.
3. The obligations of this agreement shall continue:
(a) As to any real property, including any structure, acquired or improved with the aid of the Federal financial
assistance, so long as such real property is used for the purpose for which the Federal financial assistance is made
or for another purpose which affords similar services or benefits, or for as long as the Recipient retains ownership or
possession of the properly, whichever is longer.
(b) As to any personal property acquired or improved with the aid of the Federal financial assistance, so long as
Recipient retains ownership or possession of the property.
(c) As to any other aided facility or activity, until the last advance of funds under the loan or grant has been made.
4. Upon any breach or violation of this agreement the Government may, at its option:
(a) Terminate or refuse to render or continue financial assistance for the aid of the property, facility, project,
service or activity.
(b) Enforce this agreement by suit for specific performance or by any other available remedy under the laws of
the United Slates or the State in which the breach or violation occurs.
Rights and remedies provided for under this agreement shall be cumulative.
In witness whereof, __ South Central Water & Sewer District
Thorne or recipient) on this
date has caused this agreement to be executed by its duly authorized officers and its seal affixed hereto. or. if a natural
person. has hereunto executed this agreement.
(S E A L)
Clerk
South Central Water & Sewer & District
January 3z 1989
Recipient
......__...Date_
date
Title
Chairman
170
USDA -FmHA.
Farm FmHA 1940 -1
(Rev. 2 -86)
REQUEST FOR OBLIGATION OF FUNDS
YPMI�IYAL12EptL1ik TYPE INSPACESMA10EDii'.k�52%i'�)�
'moo l 4 wp fl, ,„, ibmsy ffuu2iil,ds#1tlabh Itans.YP, tlxU 40. $ 0 Ft.N 8isbs
1. CASE NO.
St Co Borrower's ID
356
316 0 1 51110171
1 1 4 1 1 0 1 1 1 l 9 1 8 1
s.LOA14 NO " 'ss ar yam' 3 I} Pt$t7}t),YEAR
i -.1 r. PlrYdwa OflTCe+antr�.,�.;
'
2. BORROWER NAME
SOUTH CENTRAL W A T E R (1)
3. NO. NAME FIELDS
31(£, 2, or 3 from Item 2)
& S E W E R D I S T R I C T O F 12)
4. STATE NAME
N101RIT1H1 I CIA,R101L II 1NIA1 1
ill AI iti NlEI Ti ( 1 131
5. COUNTY NAME
LIAI RINIEITITI i 1 1 1 1 1 1 1
va � la ' GENERAL &O RRDYER
LOAN INFORMATION 1,1 *c% tCWet e.+ %5t?`v
6. RACE /ETHNIC CLASSIFICATION
11= White 2 =Black 3 =Al/AN 4 =Hispanic 5 =A /PI
7. SEX CODE 1 = Male 4 = Organization Male Owned
2 = Female 5 = Organization - Female Owned
61 3= Family Unit 6= Public Body
8. MARITAL STATUS
1- =Married 3 =Unmarried
12 =Separated
9. VETERAN CODE
11 =yes 2 =No
10. CREDIT REPORT
211 =Yes - 2 No
11. DIRECT PAYMENT
1= County Office 3 = No
312 = FinanceOffice
12. TYPE OF PAYMENT
1 = Monthly 3 = Semiannual
212= Annually 4 =Quarterly
13. FEE INSPECTION
-
2( 1 =Yes 2 =No
14. INTEREST CREDIT
1 = Yes
OEM & max Only)
12 =No
15. COMMUNITY SIZE
1 = 10,000 or less (SF£! & MFH
Dnly)
12 = Over 10,000
rE. : ,, ,,....;°?
5;\COMPLETEcFOR;OBLIGATION.OF FUNDS.: ,r','. ':. ;*.��.,�,.,:7„c<4;.
18. TYPE OF ASSISTANCE
17. PURPOSE CODE
18. TYPE OF FUNDS
1 = Guaranteed - no Interest flat Buydown
2 - Insured
3 = Guaranteed - with Interest R or auydown
4= Guaranteed • Interest Rate 0 ydown Only
19. PERCENT OF LOAN
GUARANTEED
(Complete if Item 18
Equals I. 3 or 4)
19A. TERM OF INTEREST
RATE BUYDOWN
1 = 1 Year 2 = 2 Year 3 = 3 Years
20. TYPE OF ACTION
1= Obligation Only
2 • Obligation /Check Request
3 = Correction of Obligation
21. TYPE OF SUBMISSION 22. AMOUNT OF LOAN
t = Initial ( Enter Code 2 if subsequent loan associated $ -
11 2= Subsequent with Credit Sale or Assumption) 1 I 9 110 10[00'01
I I
23. AMOUNT OF GRANT
$
I 317140101040/01
27. REPAYMENT TERMS
401 (Nn ofYears)
24. AMOUNT OF IMMEDIATE
$ ADVANCE
I 1 l I 1010101
25. DATE OF APPROVAL 26. INTEREST RATE
MO OP. YR
1 1-1 1 1 -1 I 1 0, 5401010, 011 %1
xoSK.... ." „.,WGi;.as',WPtO'LETE..FOR SINGLE FAMILY HOUSING ONLY
28. INCOME CATEGORY CODES
1= Very Lows- 3 =Moderate
12 = Low 4= Above Moderate
29. LOW INCOME LIMIT -MAX.
$
- 1 4 1 1 0 0
33. R. E. TAXES -.2nd YEAR
$
• D 0
30; ADJUSTED FAMILY
$ INCOME
0 0 0
34. NOTE INSTALLMENT
$ INELIGIBLE
00
31. R. E. INSURANCE
$
4 I I 10101
32. R. E TAXES -1st YEAR
$
4 I 1 •DIOI
35. TYPE OF UNIT
1 = Farm Tract
12 = Non -Farm Tract
36. DWELLING CODE
1 = Build 3 = Purchase Old 5 = Repair 7 = Refinance-Repair
1 2 = Purchase New 4 of Refinance 6 = Purchase Old-Ropair
a � ibA T .PL.T£`tORsCQMF.IUNITY4P,ROGRAM AND CERTAIN MULTIPLE•FAMI LY HOUSING, LOANS
37. TYPE OF APPLICANT
1 = Individual 3 = Corporation 5 = Ann. of Farmers 7 = Other
4( 2= Partnership 4= Public Body 6 = Organ. of Farm Workers
38. PROFIT TYPE
11 1 = Full Profit 2 -- Limited Profit 3 =Nom Profit
‘fisingS f';`•VialePLEtErfOR EM;LOANS ONLY,' tI i"'<v'
; /COMPLETE FOR. CREDIT SALE /ASSUMPTIONS ONLI': Y =+
40. TYPE OF SALE
1 = Credit Sale Only 3 - Credit Sale /Subsequent Loan
12 = Assumption Only 4 = Assumption /Subsequent Loan
39. DISASTER DESIGNATION NUMBER -
I rc._ cirri
CERTIFICATION APPROVAL
41. COMMENTS AND REQUIREMENTS OF CERTIFYING OFFICIAL
Loan Approval subject to the requirements of Letter of Conditions dated
December 12, 1988; FmHA Instructions; Form FmHA -NC 442 -13, Processing
Checklist; and Loan Closing Instructions issued by the Office of the
General Counsel.
42. 1 HEREBY CERTIFY that 1 am unable to obtain sufficient credit elsewhere to finance my actual needs at reasonable
rates and terns, taking into consideration prevailing private and cooperative rates and terns in or near my community
for loans for similar purposes and periods of tinge. 1 agree to use, subject to and in accordance with regulations appli-
cable to the type of assistance indicated above, and request payment of the sum specified herein. 1 agree to report to
FniliA any material adverse changes, financial or otherwise, that occur prior to loan closing. I certify that no part of
said sum has been received. I have reviewed the loan approval requirements and continents associated with this loan
request and agree to comply with these provisions.
(For SFH & FP loans at eligible terms only) If this loan is approved, I elect the interest rate to be charged on my FmHA
loan to be the lower of the interest rate in effect at the time of loan approval or loan closing. If I check "NO ", the
interest rate charged on my loan will be the rate specified in Item 26 of this form. YES NO
WARNING:
Date .Tanllary 3
Section 1001 of Title 18, United States Code provides: 'Whoever, in any matter within the jurisdiction of any
department or agency of the United States knowingly and willfully falsifies, conceals or cowers up ... a material
(act or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing
or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall he fined
not more than $10,000 or imprisoned not more than 6 years, or both."
19 89 South Central Water & Sewer District
Date 19 BY:
ATTEST:
(Signature of Applicant)
Chairman (Signature of Co- Applicant)
Clerk
43. I HEREBY CERTIFY that all of the committee and administrative determinations and certifications required by
Farmers Home Administration regulations prerequisite W providing assistance of the type indicated above have been
made and that evidence thereof is in the docket, and that all requirements of pertinent regulations have been complied
with. I hereby approve the above - described assistance in the amount set forth above, and by this document, subject to
the availability of funds, the Government agrees to advance such amount 10 the applicant for the purposes of and
subject to conditions prescribed by Fanners Home Administration regulations applicable to this type of assistance.
171
Date Approved'
Title:
(Signature of Approving Official)
44. TO THE APPLICANT: As of this date this is notice that your application for the above
financial assistance from the Farmers Home Administration has been approved, as indicated above, subject to avail-
ability of funds and other conditions required by the Farmers Home Administration. If you have any questions contact
the County Supervisor.
USDA -FmHA
Form FmHA 442-7
.(Rev. 8- 12.76)
Position 3
OPERATING BUDGET
FmHA 1940 -1
(REVERSE)
Schedule 1
Name SOUTH CENTRAL WATER 8 SEWER
DISTRICT
AddresPO ROX
759, L LLINGTON
Applicant Fiscal Year
From JULY I To JUNE
30
County
IIARNE.TT
State (Including ZIP Code)
NC 27546
OPERATING INCOME
1988 -89
19719 -90
19
19
First Full Ycar
(1)
(2)
11 036
(3)
(4)
(5)
33 138
I SEWER FEES
2. T.At' FEES
1 001
3.
4.
5. Miscellaneous
6. Less: Allowances and
Deductions
7. Total Operating Income
(Add Lines 1 through 6)
OPERATING EXPENSES
(
)
( )
(
)
( )
( )
11 '139
34 108
3 0.)0
v 500
350
r, tint)
, O),)
8. Lab,:
9. Utilities
10. Maint 5 R9pairs
11. Soo-»' .. !s!C:s?ni ca 1;
400
P50
A')n
12. Office /Travel
13. Ins /Contracts
800
3 740
;nn
1 inn
14.Treatmenc
15. Interest (FmHA)
16. Depreciation
17. Total Operating Expense
(Add Lines 8 through 16)
18. NET OPERATING INCOME
(LOSS) (Line 7 Tess 17)
NONOPERATING INCOME
9 SSO
2 5.110
9 -11
11 450
5
22 900
32 050
54 150
<21 014>
<20 042>
19.
20.
21. Total Nonoperating Income
(Add 19 and 20)
22. NET INCOME (LOSS)
(Add Lines 18 and 21)
(transfer to line A Schedule
21
<21 014>
<20 042>
Budget and Projected Cash Flow Approved by Governing Body
Attest-
Secretary Dare
AI-proprbre Official Dare
172
Schedule 2
PIROJ l ?('TED CAS I I' PI OW
Resolution No:
BE IT RESOLVED:
That the Board of Commissioners of South Central Water &
Sewer District accepts the conditions set forth in a Letter
of Conditions dated December 12, 1988 and Form FmHA 1942 -47,
Loan Resolution:
That the Board of Commissioners approves as shown on Form
FmHA 442 -7, Operating Budget; the proposed budget:
That the Chairman and Clerk be authorized to execute all
forms necessary to obtain a loan from rmHA, including, but
not limited to the following forms:
Form FmHA 1942 -47 Loan Resolution
Form FmHA 442 -46 Letter of Intent
Form FmHA 442 -7 Operating Budget
Form FmHA 400 -4 Assurance Agreement
Form FmHA 400 -1 Equal Opportunity Agreement
Form FmHA 1940 -1 Request For Obligation of Funds
That if the interest rate charged by FrnHA should be changed
between this date and the date of actual loan approval, the
Chairman and Clerk be authorized to execute new forms
reflecting the current interest rate and revise payments as
required by FmHA:
That the Board of commissioners elects to have the interest
rate charged by FmHA to be the lower of the rate in effect
at either the time of loan approval or loan closing:
The proposed rate schedule for sewer use in as follows.:
Minimum $12.00
plus 3.00 /1000 gallons
This resolution to become a part of the official minutes of
the Board of Commissioners meeting held on January 3, 1989.
ATTEST: BY:
Chairman
Clerk
19$$-89
19 R9 -90 —
19
19
First
Full Year
A. Line 22 from Schedule 1 Income (loss)
')
Add
B. Items in Operations not Requiring Cash:
<21 (114:
<20 042)
11 45t
22 900
1. Depreciation (line 16 Schedule 1)
2. Others•
C. Caslt Provided From:
124 000
433 000
1. Proceeds from FmHA loan /grant
2. Proceeds from others
3. Increase (Decrease) in Accounts Payable, Accruals
and other Current Liabilities
4. Decrease (Increase) in Accounts Receivable, Inventories
Other Current Assets (Exclude Cash)
200 0110
39(1 811(1
and
Other Sale of BAN -
191 000
5.
= Applicant Contribution
18 100
6
3. Total all A, B and C Items
E. Less: Cash Expended for:
533 100
809 236
2 858
387 000
742 0(1(1
1. All Construction, Equipment and New Capital Items
(loan and Grant funds)
2. Replacement and Additions to Existing Property,
Plant and Equipment
3. Principal Payment FmHA Loan
4. Principal Payment Other Loans
other Repayment of BAN 1
1 000
1 775
2(15 1100
5.
6. Total E 1 through 5
Add
P. Beginning Cash Balances
G. Ending Cash Balances (Total of D Minus E 6 Plus F)
item G Cash Balances Composed o(:
387 000
947 001)
2 775
0
46 100
0
S 146 100
S 8 116
$
$
S 83
$ 105 1110
c
$
S
$
Construction Account
Revenue Account
Debt Payment Account
0&M Account
Reserve Account
Funded Depreciation Account
Others-
41 000
9 376
83
total - Agrees with Item G
S 105 100
$ 8 334
S
$
S 83
Resolution No:
BE IT RESOLVED:
That the Board of Commissioners of South Central Water &
Sewer District accepts the conditions set forth in a Letter
of Conditions dated December 12, 1988 and Form FmHA 1942 -47,
Loan Resolution:
That the Board of Commissioners approves as shown on Form
FmHA 442 -7, Operating Budget; the proposed budget:
That the Chairman and Clerk be authorized to execute all
forms necessary to obtain a loan from rmHA, including, but
not limited to the following forms:
Form FmHA 1942 -47 Loan Resolution
Form FmHA 442 -46 Letter of Intent
Form FmHA 442 -7 Operating Budget
Form FmHA 400 -4 Assurance Agreement
Form FmHA 400 -1 Equal Opportunity Agreement
Form FmHA 1940 -1 Request For Obligation of Funds
That if the interest rate charged by FrnHA should be changed
between this date and the date of actual loan approval, the
Chairman and Clerk be authorized to execute new forms
reflecting the current interest rate and revise payments as
required by FmHA:
That the Board of commissioners elects to have the interest
rate charged by FmHA to be the lower of the rate in effect
at either the time of loan approval or loan closing:
The proposed rate schedule for sewer use in as follows.:
Minimum $12.00
plus 3.00 /1000 gallons
This resolution to become a part of the official minutes of
the Board of Commissioners meeting held on January 3, 1989.
ATTEST: BY:
Chairman
Clerk
173
DOCUMENT NO. 2.
RESOLUTION AUTHORIZING EXECUTION OF
LEGAL SERVICES AGREEMENT
WHEREAS, The Harnett County Board of Commissioners, sitting as
the governing body of the South Central Water and Sewer District of
Harnett County (hereinafter "District "), has examined the Legal
Services Agreement between the District and John M. Phelps, II,
Attorney, attached hereto as Exhibit "A "; and
WHEREAS, District desires to enter into said contract as
provided;
NOW, THEREFORE, BE IT RESOLVED, by the Harnett County Board of
Commissioners, sitting as the governing body of the South Central
Water and Sewer District of Harnett County, that:
1. South Central Water and Sewer District of Harnett County is .
hereby authorized to and shall enter into the Legal Services Agreement
attached hereto as Exhibit "A ".
2. The South Central Water and Sewer District of Harnett County
and its officers and agents are hereby directed to execute said Legal
Services Agreement.
Duly adopted this the 3rd day of January, 1989, upon motion
made by Commissioner Shaw
Commissioner Collins
vote:
Ayes 5 Noes 0
ATTEST:
By:
Absent
0
, seconded by
and passed by the following
Abstained
0
HARNETT COUNTY BOARD OF COMMISSIONERS
sitting as the governing body of the
South Central Water and Sewer District
of Harnett County
L o d GL Stewart, Chairman
Vanessa W. Young,0Clerk
UNITED STATES DEPARTMENT OF AGRICULTURE
Farmers Home Administration
LEGAL SERVICES AGREEMENT
This agreement made this 3rd day of January, 1989 between the
South Central Water and Sewer District of Harnett County hereinafter
referred to as "Owners" and John M. Phelps, II, Attorney at Law, of
Lillington, North Carolina, hereinafter referred to as "Attorney ":
WHEREAS, Owners have formed in Harnett County, North Carolina a
water and sewer district pursuant to the provisions of N.C. Gen. Stat.
$162A -86 et. seq. known as the South Central Water and Sewer District
of Harnett County (hereinafter "District "); and
WHEREAS, the Attorney agrees to perform all legal services
necessary under the provisions of the applicable statutes and to
perform all other customary legal services necessary to the
organization, financing, construction and initial operation of a sewer
collection system;
W I T N E S S E T H:
That for and in consideration of the mutual covenants and promises
between the parties hereto, it is hereby agreed:
174
SECTION A - LEGAL SERVICES
That the Attorney will perform such services as are necessary to
accomplish the above recited objectives including, but not limited to,
the following:
1. Preparation and filing of the necessary documents and
supervision and assistance in the taking of such other
actions as may be necessary or incidental to cause the
Owners to become duly organized and incorporated and to be
authorized to undertake the proposed system.•
2. Furnish advice and assistance to the governing body of the
South Central Water and Sewer District of Harnett County in
connection with (a) the notice for and conduct of meetings;
(b) the preparation of minutes of meetings; (c) the
preparation and enactment of such resolutions as may be
necessary in connection with the authorization, financing,
construction, and initial operation of the system; (d) the
preparation of such affidavits, publication notices,
ballots, reports, certifications, and other instruments and
advice as may be needed in the conduct of such bond
elections as may be necessary; (e) the preparation and
completion of such bonds or other obligations as may be
necessary to finance the system; (f) the completion and
execution of documents for obtaining a loan made or insured
or a grant made by the United States of America, acting
through the Farmers Home Administration, U.S. Department of
Agriculture; (g) entering into construction contracts; (h)
preparation and adoption of By -Laws, Rules and Regulations,
and rate schedules; (i) such other corporate action as may
be necessary in connection with the financing, construction,
and initial operation of the system.
3. Review of construction contracts, bid - letting procedure, and
surety and'contractual bonds in connection therewith.
4. Preparation, negotiation, or review of contract with a
sewer treatment facility when necessary.
5. Preparation, where necessary, and review of deeds, easements
and other rights -of -way documents, and other instruments for
sites for sewer treatment, pumping stations, treatment
plants, and other facilities necessary to the system and to
provide continuous rights -of -way therefor; rendering title
opinions with reference thereto; and providing for the
recordation thereof.
6. Obtain necessary permits and certificates from county and
municipal bodies, from State regulatory agencies, and from
other public or private sources with respect to the approval
of the system, the construction and operation thereof,
pipeline crossings, and the like.
7. Cooperate with the engineer
with preparation of tract
necessary title documents,
treatment contracts, health
other instruments.
employed by Owners in connection
sheets, easements, and other
construction contracts, sewer
permits, crossing permits, and
8. When applicable, secure assistance of and cooperate with
recognized bond counsel in the preparation of the documents
necessary for the financing aspects of the system. Where
bond counsel is retained, the Attorney will not be
responsible for the preparation and approval of those
documents pertaining to the issuance of the Owner's
obligations.
SECTION B - COMPENSATION
1. Owners will pay to the. Attorney for professional services
rendered in accordance herewith, fees in the amount of
.$50.00 per hour. Said fees will be paid to the
Attorney each month pursuant to regular statements presented
by the Attorney.
ATTEST
fa,y.e.o.aaJ (1 (/1 14Aikiv -/
Vanessa W. Young), Clep7C
John M. Phelps, II, Attorney
HARNETT COUNTY BOARD OF COMMISSIONERS
sitting as the governing body of the
SOUTH CENTRAL WATER AND SEWER DISTRICT
OF HARNETT COUNTY
By:
4 ■ .9 ,J
Lloy
G. Stewart, Chairman