04031989 (2)323
SOUTHWEST WATER F1 SEWER DISTRICT MEETING, APRIL 3, 1989
.NILLARD R. DEAN
PRESENTED LETTER
OF CONDITIONS Fr
OTHER DOCUMENTS
ADJOURNMENT
DOCUMENT NO. 1.
The Harnett County Board of Commissioners sitting as the governing body of
Southwest Water and Sewer District of Harnett County met April 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 11:10 a. m.
Willard R. Dean, Farmers Home Administration, presented for consideration a
Letter of Conditions and related agreements regarding funding for Southwest
Water and Sewer District project. Commissioner Shaw moved for the approval of
the Letter of Conditions and related agreements. Commissioner Smith seconded
the motion and it passed with a unanimous vote. The Letter of Conditions and
related agreements are copied in full at the end of these minutes dated April
3, 1989, as document No. 1.
There being no further business, the Harnett County Board of Commissioners
sitting as the governing body of Southwest Water and Sewer District of Harnett
County duly adjourned at 11:30 a.m.
Lloy
ewart, Chairman
QACe61 Q1
Kay �S3lanchard, Recording Secretary
Vanessa W. Young, C1 to he Board
CERTIFICATION APPROVAL
41. COMMENTS AND REQUIREMENTS OF CERTIFYING OFFICIAL
Loan approval subject to the requirements of the Letter of Conditions dated
April 3, 1989; FmHA Instructions; Form FmHA -NC 442 -13, Processing Checklist;
and Loan Closing Instructions issued by the Office of the General Counsel.
42. I HEREBY CERTIFY that I am unable to obtain sufficient credit elsewhere to finance my actual needs at reasonable
rates and temts, taking into consideration prevailing private and cooperative rates and terms in or near my community
for loans for similar purposes and periods of time. I 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
FmHA any material adverse changes, financial or otherwise, that occur prior to loan closing. I certify that no part of
said suer has been received. I have reviewed the loan approval requirements and comments associated with this loan
request and agree to comply with these provisions.
(For 5FH & FP loans at eligible terns only) If this loan is approved, 1 elect the interest rate to be charged on my FmfiA
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:
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 falsities. conceals or covers up ...a material
fact 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 5 years, or both."
Date 19
Date APRIL3
ATTEST :2 ,
SOUTHWEST WATER & SEWER DISTRICT
19 89 BY:
Cl& k
43. I HEREBY CERTIFY that all of the committee and administrative determinations and certifications required by
Farmers Home Administration regulations prerequisite to 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 to the applicant for the purposes of and
subject to conditions prescribed by Farmers Horne Administration regulations applicable to this type of assistance.
(Signature of Applicant)
CHAIRMAN ( Signature of Co- Applicant)
Date Approved'
(Signature of Approving Official)
Title'
44. TO THE APPLICANT: As of this date this is notice that your application for the above
financial assistance from the Fanners 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.
Fnll'IA 1940 -1
(REVERSE)
324
UNITED STATES DEPARTMENT OF AGRICULTURE
Form FHA 442-46 FARMERS HOME ADMINISTRATION
(Rev. 1 -9 -69)
LETTER OF INTENT TO MEET CONDITIONS
Date APRIL 3, 1989
TO: Fanners Home Administration
United States Department of Agriculture
4001 CARYA DRIVE, SUITE B
RALEIGH, NORTH CAROLINA 27610
(County Office Address)
We have reviewed and understand the conditions set forth in your letter dated APRIL 3, 1989
It is our intent to meet all of them not later than JANUARY 1, 1990
BASED ON FmHA REGULATIONS, SOUTHWEST WATER & SEWER DISTRICT OF HARNETT COUNTY
ELECTS TO HAVE THE INTEREST RATE CHARGED BY Fm11A TO BE TIIE LOWER OF THE RATE IN
EFFECT AT EITHER THE TIME OF LOAN APPROVAL OR LOAN CLOSING.
SOUTHWEST WATER & SEWER DISTRICT
BY
(Name of Association)
/v.
FORM APPROVED
Form FmHA 1942 -31 • OMB No. 0575 -0074
(4 -85) UNITED STATES DEPARTMENT OF AGRICULTURE Expiration date available upon request.
FARMERS HOME ADMINISTRATION
ASSOCIATION WATER OR SEWER SYSTEM GRANT AGREEMENT
THIS AGREEMENT dated APRIL 3 1989 between
SOUTHWEST WATER & SEWER DISTRICT OF HARNETT COUNTY
a public corporation organized and operating under
•THE STATE OF NORTH CAROLINA
ARTICLE 162 -A OF THE GENERAL STATUTES OF
(Authorizing Statute)
herein called "Grantee," and the United States of America acting through the Farmers Home Admin
Agriculture, herein called "Grantor," WITNESSETH:
ation, Department of
WHEREAS ..
Grantee has determined to undertake a project of acquisition, construction, enlargement, or capital improvement of a (water)
tW i)>system to serve the area under its jurisdiction at an estimated cost of $ 3.r82R, n00 00 _ and has duly authorized
the undertaking of shch project.
Grantee is able to finance not more than $ 2, 609, 000.00 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 $ 2, 509 000. 00has been committed to and by Grantee for such project development costs.
Grantor has agreed to grant the Grantee a sum not to exceed S 1 71 q-,-OOR_Ofbr 41 R4 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 31.84
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, conrinuously 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 discrimina-
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 fees in accordance with a schedule
•
of such charges, whether for one or more classes of serrice, adopted by resolution date APRIL 3 19 89 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 a construction development grant and Is used to
determine that the grant funds are used for authorized program purposes.
325
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 time 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 Grantor. •
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.
I. Upon any default under its representations or agreements set forth in this instrument, or in the instruments 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 lae
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. Title 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 (after 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 tank sites, all pump station sites, master meter vault sites, and all Rights -of -Way
and /or Easements that are obtained by Southwest Water & Sewer District either by
negotations, condemnations, or purchase of existing systems.
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 5300 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 other 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 outer activities in accordance with the following standards:
(a) Nonexpendable property with a unit acquisition cost of less than 51,000. 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 51,000 or more. The Grantee may retain
the property for other uses provided tha•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 Grave 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 cost of the original project or program. How-
ever, the Grantee shall be permitted to deduct and retain from the Federal share 8100 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 dace 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) Adegyate 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 water distribution lines, water storage tanks, fire hydrants, meters, valves, all
buildings, and all other facilities constructed or purchased by Southwest Water &
Sewer District as a part of their water 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, unobligated 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 are pertinent to the specific grant program for the purpose
of snaking 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 govemment or a nonprofit organization. States and agencies or instrumentali-
ties of states shall 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 82,000 and in other contracts in excess of $2,500 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.Cc§ 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 on 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 action as the Government may direct as a means of enforcing such provisions.
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
ocher generally applicable requirements, including those set out in 7 CFR 3015.205(6), 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 3 1 , 2191 000.00
which it will advance to Grantee to meet not to exceed 31.84 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.
C. At its sole discretion and at any time may give any consent, deferment, subordination, release, satisfaction, 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 purpose of the grant or to protect Grantor's financial interest
therein and (2) consistent with both the statutory purposes of the grant and the limitations of the statutory authority under
which it is made.
TERMINATION OF THIS AGREEMENT - - This Agreement may be terminated for cause in the event of default on the part of the Grantee as provided in paragraph I
above or for convenience of the Grantor and Grantee prior to the date of completion of the grant purpose. Termination for
convenience will occur when both the Grantee and Grantor agree that the continuation of the project will not produce
beneficial results commensurate with the further expenditure of funds.
- IN WITNESS WHEREOF Grantee on the date first above written has caused these presence to be executed by its duly
CHAIRMAN -
authorized
and attested and its corporated seal affixed by its duly authorized
CLERK
ATTES lr-- I(
By_ /Ano— tatcvi.,V_ 7611xY _- -_— By_—
CLERK V71
CHAIRMAN
(Title) (Title).
UNITED STATES OF AMERICA
FARMERS HOME ADMINISTRATION
By , JTaYrE. McLAMB
District Director
( Title)
327
r
USDA -FmIiA
Form FmHA 194247
(Rev. 8.87)
FORM APPROVED
LOAN RESOLUTION OMB NO. o575n01s
(Public Bodies)
A RESOLUTION OF THE BOARD OF COMMISSIONERS
OF THE SOUTHWEST WATER & SEWER DISTRICT OF HARNETT COUNTY
AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A
PORTION OF THE COST OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND /OR EXTENDING ITS
WATER FACILITY
FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE.
WHEREAS, it is necessary for the SOUTHWEST WATER & SEWER DISTRICT OF HARNNETT COUNTY
(Pu blic Body)
(herein after called association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of
TWO MILLION FIVE HUNDRED FORTY -ONE THOUSAND DOLLARS (52,541,000.00)
pursuant to the provisions of LOCAL GOVERNMENT BOND ACT (GS. 159 -43 Et Seq)
WHEREAS, the association intends to obtain assistance from the Farmers Home Administration, United States Department of Agricul-
ture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921
et seq.) in the planning, financing, and supervision of such undertaking and to purchasing of bonds lawfully issued, in the event that no
other acceptable purchaser for such bonds is found by the association:
NOW THEREFORE, in consideration of the premises the association hereby resolves:
1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds and containing such
items and in such forms are required by STATE statutes and as are agreeable and acceptable to the Government.
2. To refinance the unpaid balance, in whole or in part, of its bonds .upon the request of the Government if at any time it
shall appear to the Government that the association is able to refinance its bonds by obtaining a loan for such purposes
from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods
of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (7 U.S.C. 1983(c)).
3. To provide for, execute. and comply with Form FI11HA 4004. "Assurance Agreement "; and Form FmHA 4001, "Equal
Opportunity Agreement ", including an "Equal Opportunity Clause ", which clause is to be incorporated in, or attached
as a rider to, each construction contract and subcontract involving in excess of 510.000.
4. To indemnify the Government for any payments made or losses suffered by the Government on behalf of the association.
Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal per-
missible source.
5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any cov-
evant or agreement contained herein or in the instrument incident to making or insuring the loan, the Government at
its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and pay-
able, (b) for the account of the association (payable from the source of funds pledged to pay the bonds or any other
legally permissible source) incur and pay reasonable expenses for repair. maintenance, and operation of the facility and
such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facility,
repair, maintain, and operate or rent it. Default under the provisions of this Resolution or any instrument incident to the
making or insuring of the loan may be construed by the Government to constitute default under any other instrument
held by the Government and executed or assumed by the Association, and default under any such instrutnent may be
construed by the Government to constitute default hereunder.
6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, not permit others
to do so, without the prior written consent of the Government.
7. Not to borrow any money from any source, enter into any contract or agreement, or incur any other liabilities in con-
nection with making enlargements, improvements or extensions to, or for any other purpose in connection with the
facility (exclusive of normal maintenance) without the prior written consent of the Government if such undertaking would
involve the source of funds pledged to pay the bonds.
8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Government. Funds may be
deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed by
the full faith and credit of the United States. Any income from these accounts will be considered as revenues of the system.
9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility
in good condition.
10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and
the establishment of adequate reserves. Revenue accumulated over and above that needed to pay operating and mainte-
nance. debt service and reserves may only be retained or used to make prepayments on the loan. Revenue can not be used
to pay any expenses which are not directly incurred by the facility financed by FInHA. No free service or use of the facil-
ity will be permitted.
11. To acquire and maintain such insurance coverage including fidelity bonds as may be required by the Government.
12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to
provide for required audit thereof in such a manner as may be required by the Government, to provide the Government
without its request, a copy of each such audit, and to make and forward to the Government such additional information
and reports as it may from time to time require.
The agreement to provide she information collected through the loan resolution Is required to obtain Fm HA loan /grant a
so collected is used to determine compliance with the covenants of this resolution and applicable F mHA regulations.
lance and the information
13. To provide the Guccommut at all reasonable Blues access to all books mid iecords relating to the facility and access to
the property of the system so that the Government may ascertain that the association is complying with the provisions
hereof and of the instruments incident to the making or insuring of the loan.
14. In cases where the Government requires that a reserve account be established and maintained, when necessary,disburse-
ments from the reserve account may be used for payments due on the bond if 'sufficient funds are not available in the
general or debt service accounts. With the prior written approval of the Government, funds may be withdrawn for:
(a) Paying the cost of repairing or replacing any damage to the facility which may have been caused by catastrophe.
(b) Repairing or replacing short -lived assets.
(c) Making extensions or improvements to the facility.
Any time funds are disbursed from the reserve account, additional deposits will be required until the reserve account has
reached the required funded level.
15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain
FmHA's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which
are feasible and legal, such person shall have a direct right of action against the association or public body.
16. In the case of a grant in the sun not to exceed $ 1, 219, 000.00 the association
hereby accepts the grant under the terms as offered by the Government and that the CHAIRMAN
and CLERK of the association are hereby authorized and empowered to take all action necessary
or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant and
the association hereby resolves to operate the facility under the terns as offered in said grant agreement(s).
The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan, unless otherwise
specifically provided by the terms of such instrument, shall be binding upon the association as long as the bonds are held or
insured by the Government. The provisions of sections 6 through 15 hereof may be provided for in more specific detail in the
bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance should be found
to be inconsistent with the provisions hereof, these provisions shall be construed as controlling as between the association and
the Government.
The vote was:
Yeas 0 Nays Absent 0
IN WITNESS WHEREOF the BOARD OF COMMISSIONERS
of the
SOUTHWEST WATER & SEWER DISTRICT OF HARNETT COUNTY has duly adopted this Resolution and caused
to be executed by the officers below in duplicate can Ibis 3RD
(SEAL)
day of APRIL
SOUTHWEST WATER & SEWER DISTRICT
1989
328-
n
Form FmHA 442 -7
(Rev. 8- 12 -76)
OPERATING BUDGET
Name
Southwest Water & Sewer District
1988-89
Address
P. 0. Box 759,
Lillington
19
Applicant Fiscal Year
From 7 -1 To 6 -30
County
Harnett
State (Including ZIP Code)
North Carolina 27546
(56 101
74 000
OPERATING INCOME
19 88-89
19 89
-90
19
19
First Full Year
(1)
226
(2)
937
(3)
(4)
(5)
338
712
1. Water Sales
2.
- -
3.
5. Other Appl. Contribution
68 00C
6 = Sale BAN
4.
D. Total all A, B and C Items
E. Less: Cash Expended for:
2 609 00C3
761 437
5. Miscellaneous •
6. Less: Allowances and
Deductions
7. Total Operating Income
(Add Lines 1 through 6).
OPERATING EXPENSES
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
5. Other Repay BAN
( )
(
)
(
)
( )
(
)
2 541 00
6. Total E 1 through 5
Add
F. Beginning Cash Balances
G. Ending Cash Balances (Total of D Minus E 6 Plus F)
Item G Cash Balances. Composed of;
1 914 00(4
455 001)
22
000
695 00
22
000
S 1 43 S
8. Salaries /Travel
9. Insurance /Audit.
c695 000 •
4
000
S
Construction Account .. . ._.
Revenue Account
Debt Payment Account
O &M Account • ..
Reserve Account
Funded Depreciation Account
Others•
4
000
/0. Office Expenses
5
000
1 43 /
5
000
11. Utilities /Transport
8
000.
12
000
12. Maint & Repair
4
700
Total - Agrees with Item G
-
7
000
s 264
13. Chem Supplies /Mise
14. Bulk Water Pur
3
400
5
000
72
000
107
000
15. Interest (FmHA)
16. Depreciation
17. Total Operating Expense
(Add lanes 8 t rough 16)
18. NET OPERATING INCOME
(LOSS) (Line 7 less 17)
NONOPERATING INCOME
-
106
400
158
813
-
49
600
74
000
275
100
394
813
(48
163)
(56
101)
19.
20.
21. Total Nonoperasing Income
(Add 19 and 20)
22. NET INCOME (LOSS
(Add Lines 18 and 21
(transfer to line A Schedule
o)
(48
163)
(56
101)
Budget and Projected Cash Fllow�� Approved by Governing Body
Attest. 1/M^- ta-3nJ `.E(.l.y ., 4 - 3 -89
/ o Secretary Date
PROJECTED CASH FLOW
4 -3-g9
A ppropriate Official Dare
Schedule 2
A. Line 22 from Schedule]. Income (loss)
Add
B. Items in Operations not Requiring Cash:
1988-89
19 89 -90
19
19
First
Full Year
(48 163.
(56 101
74 000
49 600
1. Depreciation (line 16 Schedule 1)
2. Others
C. Cash Provided From:
3 760 00
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
and Other Current Assets (Exclude Cash)
- -
5. Other Appl. Contribution
68 00C
6 = Sale BAN
2 541 00C
D. Total all A, B and C Items
E. Less: Cash Expended for:
2 609 00C3
761 437
17 899
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
5. Other Repay BAN
2 541 00
6. Total E 1 through 5
Add
F. Beginning Cash Balances
G. Ending Cash Balances (Total of D Minus E 6 Plus F)
Item G Cash Balances. Composed of;
1 914 00(4
455 001)
17 635
695 00
8695 000
S 1 43 S
S
5 264
c695 000 •
S 5
S
S
Construction Account .. . ._.
Revenue Account
Debt Payment Account
O &M Account • ..
Reserve Account
Funded Depreciation Account
Others•
1 43 /
Lb4
Total - Agrees with Item G
3695 000
s 1 437 S
g
s 264
USDA -Fm HA
Form FmHA 400-4
(Rev. 8-29-79)
The
Peanut: 3
ASSURANCE AGREEMENT
(Under Title VI, Civil Rights Act of 1964)
SOUTHWEST WATER & SEWER DISTRICT OF HARNETT COUNTY
(name of recipient)
PO BOX 759, LILLINGTON, NC 27546
(cadres")
( "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. §1901.202. 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. §14.2) 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.
I. Recipient agrees that any transfer of any aided facility, other than personal property, by sale, lease or other
conveyance of' 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 property, 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 States or the State in which the breach or violation occurs.
Rights and remedies provided for under this agreement shall be cumulative.
SOUTHWEST WATER & SEWER DISTRICT OF HARNETT COUNTY
In witness whereof, .- ..__.._ on this
(name or rempreno
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.
SOUTHWEST WATER & SEWER DISTRICT
(S E A L) APRIL 3, 1989
RESOLUTION NO:
BE IT RESOLVED:
Recipienu
Date
(1) That the Board of Commissioners of SOUTHWEST WATER & SEWER DISTRICT
accepts the conditions set Forth in a Letter of Conditions dated April 3, 1989
and Form Fm1IA 1942 -47, Loan Resolution:
(2) That the Board of Commissioners of SOUTHWEST WATER & SEWER DISTRICT approves as
shown on Form FmiIA 442 -7, Operat ing Budget; t he prop,'se.l budget:
(3) That the Chairman and Clerk he authorized to execute all forms necessary to
obtain a loan from FmHA, including, but not ;imilud to the fel lowing forms:
Form FmIIA 1942 -47 Loan Hesolut i on
Form FnIL1 442 -46 Letter or tut err 1.
Form FmHA 442 -7 Opera Ling Budget
Form FmlIA 400 -4 Assurance Agreement
Form FmHA 400 -1 Equ a 1 Oppo rl uni t.y Agreement
Form FmliA 1940 -1 Itequcst. For ob1i gat ion of funds
Form FmIIA 1942 -31 Association Water or Sewer Grant Agreement
(4) That if the interest rate charged by FmIIA shoo Id be chanted between this date
and the date of ac lua1 loan approva 1, the ehe' i rm.,n and Clerk he authorized to
execute new forms ref lee Ling the currcnL int crn:1 r:,te ;u „I 1e•vi se payments as
required by FmHA:
(5) That the Board of Commissioners elects In have the :,,lr c,1. r;r tv charged by FrIIA
to be the lower of the rate in of Feet at ei t.h r 1.1 Lime ul' Loan approval or
loan closing:
(5) The proposed rate schedule for water use i :,; lel l (4. m;
Residential - Minimum $ 12.00! fl at fee) for first 2000 gallons
plus $2.50'14011 r.:,, l.00 for all over 2000 gallons
(7) This resolution to become a part of the office,,!. ml,:ut es of Ulu hoard of
Comnissioners meeting held on April 3, 1989.
3 3 -0
Form FmHA 400 -1
(Rev. 7- 1983)
This agreement, dated
UNITED STATES DEPARTMENT OF AGRICULTURE
FARMERS HOME ADMINISTRATION
EQUAL OPPORTUNITY AGREEMENT
APRIL 3, 1989
FORM APPROVED
OMB No. 0575 -0018
APPROVAL EXPIRES 4/84
SOUTHWEST WATER & SEWER DISTRICT OF HARNETT COUNTY
between
,(herein called "Recipient" whether one or more) and the Farmers Horne 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 Administration setting
forth the provisions of this nondiscrimination clause.
(b) The contractor will, in all Aolicitations o. advertisements for employees placed by or on behalf of the contractor,
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 he 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.
(f) In the event of the contractor's noncompliance with the Equal Opportunity (Federally Assisted Construction) clause
or with any of the said rules, regulations, or orders, 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
constructiron 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.
(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 UppoftunityClause 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 file -the required 'Compliance Statement', Form FHA.400 -6, .with their bids
4. Form AD -425, Instructions to Contractors, will accompany the notice of award of -the contract. - , -.
Bid conditions for all nonexempt Federal and EP.derally assisted construction contracts. require inclusion of the appropriate.,
"Hometown" or "Imposed " - plan affirmative action and equal employment opportunity requirements. Alitiddersaist pomply h;
with the bid conditions contained in the invitation•ta -be considered responsible bidders and. hence- ejigibl0..forthe awasot.,
5. To assist and cooperate actively with the Farmers Home Administration and the Secretary in- obfeioing 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 such otter
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 Government 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 Farmers 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, U. S. Department of Agriculture for
appropriate action. ,
Witness the due execution hereof by Recipient on this, the date first above written. .
(CORPORATE SEAL)
Attest:
4�t- a --sr_.
CLERK
Recipient Recipient
%a'c't' X
SOUTHWEST WATER & SEWER DISTRICT
Name of Corporate Recipient
B
ACE-
CHAIRMAN )} - 071.eir'f