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06191989 (5)467 SOUTH CENTRAL WATER AND SEWER DISTRICT MEETING, JUNE 19, 1989 BUNNLEVEL /RIVER. CONTRACTING AGENCY AGREE. BUNNLEVEL /RIVER. MANAGEMENT & OPERATIONS CONTRACT ADJOURNMENT DOCUMENT NO. 1. The Harnett County Board of Commissioners sitting as the governing body of South Central Water and Sewer District of Harnett County met July 19, 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 10:45 p.m. John M. Phelps, II, Public Utilities Attorney, presented a Resolution Authorizing Execution of Contracting Agency Agreement with Harnett County (Bunnlevel- Riverside Wastewater Facilities Project). Commissioner Shaw moved for the adoption of 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 June 19, 1989, as document No. 1. John M. Phelps, II, Public Utilities Attorney, presented a Resolution Authorizing Execution of Management and Operations Contract with Harnett County (Bunnlevel- Riverside Wastewater Facilities Project). Commissioner Shaw moved for the adoption of the resolution. Commissioner Collins seconded the motion and it passed with a unanimous vote. The resolution is copied in full a the end of these minutes dated June 19, 1989, as document No. 2. There being no further business, the Harnett County Board of Commissioners sitting as the governing body of South Central Water and Sewer District of Harnett County duly adjourned at 11 p.m. Lloyd CJJ Stewart, Chairman ante/OAK/ Kay S dBlanchard, Recording Secretary V6�vit4-4_w/ Vanessa W. Young, Cl k to the Board RESOLUTION AUTHORIZING EXECUTION OF CONTRACTING AGENCY AGREEMENT WITH HARNETT COUNTY (BUNNLEVEL- RIVERSIDE WASTEWATER FACILITIES PROJECT) WHEREAS, Harnett County, through its Department of Public Utilities, has formulated the Bunnlevel- Riverside Wastewater Facilities Project, which makes provision for sewerage collection and disposal facilities to serve the Bunnlevel and Riverside Communities within the County; and WHEREAS, The Community of Bunnlevel is located within the South Central Water and Sewer District of Harnett County and the Riverside Community is located adjacent thereto, but outside the boundaries of said District, and WHEREAS, as part of the formulation of said Project, the County has obtained grants from certain agencies which will benefit the Bunnlevel Community located within the South Central Water and Sewer District of Harnett County; and WHEREAS, South Central Water and Sewer District of Harnett County, (hereinafter sometimes referred to as "District ") in order to provide more comprehensive sewerage collection and disposal services 468 to the Bunnlevel Community, has made application to and received a loan and grant from the Farmers Home Administration of the United States Department of Agriculture for such purpose to supplement the grant monies made available to the Bunnlevel Community of the District as mentioned above; and WHEREAS, District has requested the County to act as contracting agent for the District with respect to the Project in order to more efficiently provide for the construction of the sewerage collection and disposal facilities. within District boundaries; and WHEREAS, attached hereto- as Exhibit "A" is a Contracting Agency Agreement between the District and the County of Harnett which makes provision for the County to act as said agent of the District; and WHEREAS, it is the desire of the District to enter into said agreementas 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. That the South Central Water and Sewer District of Harnett County shall enter into the Contracting Agency Agreement attached as Exhibit "A ". 2. That Chairman of the Board of Commissioners sitting as the governing body of the South Central Water and Sewer District of Harnett County and the Clerk to the Board and of the District are hereby authorized and directed to execute said Agreement for and in behalf of said District. Duly adopted this 19th day of June, 1989, upon motion made by Commissioner Shaw , seconded by Commissioner Collins and adopted by the following vote: Ayes 5 Noes 0 Absent 0 Abstained 0 EXHIBIT "A" NORTH CAROLINA HARNETT COUNTY CONTRACTING AGENCY AGREEMENT THIS AGREEMENT is made and entered into this day of , 19 by and between the SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, a municipal corporation organized and existing pursuant to the provisions of Article 6, Chapter 162A of the North Carolina General Statutes (hereinafter referred to as "District ") and THE COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina (hereinafter referred to as "County "). W I T N E S S E T H THAT WHEREAS, in response to inquiries made by citizens of the Bunnlevel and Riverside Communities in Harnett County regarding construction of sewerage collection and disposal facilities in said communities, County, through its Department of Public Utilities, has conducted studies to determine the needs for such services therein; and 469 WHEREAS, the County has found that there is a definite need for sewerage collection and disposal services in the named communities; and WHEREAS, the community of Bunnlevel is located within the South Central Water and Sewer District of Harnett County and the Riverside Community is located adjacent thereto, but outside the boundaries of said District; and WHEREAS, County has, for the benefit of the named communities, formulated a plan for providing the needed sewerage collection and disposal facilities therein, said plan now having been designated as the Bunnlevel- Riverside Wastewater Facilities Project (hereinafter sometimes referred to as the "Project "); and WHEREAS, certain plans and specifications for said Project have been completed by Ragsdale Consultants, P.A. and are now on file in the office of the Harnett County Department of Public Utilities and designated as EPA Project Number C 370454 -02; and WHEREAS, as part of the formulation of said Project, County has obtained grants from certain agencies which will benefit the Bunnlevel Community located within the South Central Water and Sewer District of Harnett County; and WHEREAS, District, in order to provide more comprehensive sewerage collection and disposal services to the Bunnlevel Community, has made application to and received a loan and grant from the Farmers Home Administration of the United States Department of Agriculture for such purpose to supplement the grant monies made available to the Bunnlevel Community of the District as mentioned above; and WHEREAS, District has requested the County and the County has agreed to act as contracting agent for the District with respect to the Project in order to more efficiently provide for the construction of the sewerage collection and disposal facilities within the District's boundaries; and WHEREAS, District and County now desire to set forth the terms of their agreements regarding these matters. NOW, THEREFORE, It is mutually agreed as follows: 1. County, through its Department of Public Utilities, as part of its implementation of the Bunnlevel- Riverside Wastewater Facilities Project, shall act as contracting agent for and on behalf of District with respect to the construction of sewerage collection and disposal facilities within the District's boundaries. In such capacity, as part of overall Project, County shall; a. cause plans and specifications for the Project to be drawn in such a manner so as to enable such portion thereof as applies to the District to be separately and distinctly identifiable from all other portions of the Project, said plans and specifications to be further drawn in a manner so as to be in full compliance with all rules, regulations and requirements of the Farmers Home Administration of the United States Department of Agriculture and such other federal and /or state agencies as may be applicable; 470 b. cause the above described plans and specifications for that portion of the Project which will provide sewerage collection and disposal facilities for the Bunnlevel Community to be advertised and bid as part of the overall Project; c. enter into.a contract or contracts for the installation and construction of the sewerage collection and disposal facilities for the Bunnlevel Community; d. cause the installation and construction of the sewage collection and disposal facilities for the Bunnlevel Community to be supervised by qualified and competent engineers;. e. provide for•the administration of the construction of the sewage collection and disposal facilities for the Bunnlevel Community, and to provide for inspection of the construction and installation of the same; f. provide for the administration of the grants and other funds obtained for use in the Bunnlevel Community; g. maintain a system of accounts for the Project which will enable payments made thereunder for and on behalf of the District to be distinguishable from all other payments made for the Project; h. pay from the funds provided to it by District (as provided in paragraph 2 below) such statements and /or pay estimates as are presented to County for work and /or services related to the installation and construction of the sewerage collection and disposal facilities in the District; and i. otherwise manage the construction and installation of the sewerage collection and disposal facilities for the Bunnlevel Community. 2. District shall pay to County, from the funds obtained through its above described loan and grant from the Farmers Home Administration of the United States Department of Agriculture, such sums which equal the cost of the installation and construction of the sewerage collection and disposal system in the District (less that portion of the costs of the same paid from the grant funds obtained by County for the Project), said sums to include District's pro rata portion of costs for engineering and legal services; said sums to be paid by District to County upon notification to District by County of its receipt of statements and /or pay estimates for work and /or services related to the installation and construction of the sewerage collection and disposal system in the District. 3. It is understood that County shall receive no compensation for its services as contracting agent as provided herein. 4. It is acknowledged by the parties that County, as a part of its implementation of the Bunnlevel Riverside Wastewater Facilities Project, has entered into a Wastewater Treatment 471 Agreement with Erwin Mills, Incorporated providing for treatment of wastewater produced from the Bunnlevel and Riverside Communities. Pursuant to said Wastewater Treatment Agreement, wastewater from District will be treated. It is further acknowledged that simultaneous with the execution hereof County and District have entered into a Management and Operations Contract which provides that upon completion of the installation and construction of District's sewerage collection and disposal facilities that the same• will be managed and operated by County and that wastewater produced therefrom will be treated pursuant to the referenced agreement with Erwin Mills, Incorporated. 5. It is understood that, as stated, a portion of the District's sewerage collection and disposal facilities is being financed by a loan made or insured by, and a grant from the Farmers Home Administration of the United States Department of Agriculture, and the provisions hereof pertaining to the undertakings of District are conditioned upon the approval, in writing, of an appropriate official of the Farmers Home Administration. It is further understood that the plans and specifications for the District as described in paragraph 1(a) hereof shall be approved by said Farmers Home Administration. IN WITNESS WHEREOF, the parties hereto, acting under authority of their governing bodies, have caused this Contracting Agency Agreement to be duly executed in duplicate counterparts, each of which shall constitute an original. This day of , 19_ DOCUMENT NO. 2. RESOLUTION AUTHORIZING EXECUTION OF MANAGEMENT AND OPERATIONS CONTRACT WITH HARNETT COUNTY (BUNNLEVEL- RIVERSIDE WASTEWATER FACILITIES PROJECT) WHEREAS, Harnett County has established a Department of Public Utilities for the purpose of operating and managing various utility service systems located within Harnett County, and WHEREAS, County, through its Department of Public Utilities, has formulated a plan for providing sewer services for the Bunnlevel and Riverside Communities of Harnett County, said plan having been designated as the Bunnlevel- Riverside Wastewater Facilities Project (hereinafter sometimes referred to as the "Project ") and in connection therewith has obtained certain grant funds for use in constructing facilities to provide such services; and WHEREAS, the Bunnlevel Community is located within the South Central Water and Sewer District of Harnett County; and WHEREAS, South Central Water and Sewer District of Harnett County, (hereinafter sometimes referred to as "District ") in order to provide more comprehensive sewerage collection and disposal facilities within the Bunnlevel Community has obtained a loan and grant from the p- rmerS Home Administration of the United States Department of 472 Agriculture to supplement the other grant monies available for construction of such facilities; and WHEREAS, the District has requested the County to manage and operate its completed facilities constructed pursuant to the aforementioned Project; and WHEREAS, attached hereto as Exhibit "A" is a Management and Operations Contract-between the County of Harnett anti the South Central Water and Sewer District of Harnett County which makes provision for said County to manage and operate the system of the District; and WHEREAS, it is the desire of the District to enter into said Agreement as set forth. 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. The South Central Water and Sewer District of Harnett County shall enter into the Management and Operations Contract attached hereto as Exhibit A. 2. The Chairman of the Board of Commissioners sitting as the governing body of the South Central Water and Sewer District of Harnett County and the Clerk to the Board and of the District are hereby authorized and directed to execute said Agreement for and in behalf of said District. Duly adopted this 19th day of June, 1989, upon motion made by Shaw Commissioner , seconded by Commissioner Collins and adopted b P by the following vote: Ayes 5 Noes 0 Absent 0 Abstained EXHIBIT A NORTH CAROLINA. MANAGEMENT AND HARNETT4COUNTY OPERATIONS CONTRACT THIS MANAGEMENT AND OPERATIONS CONTRACT is made and entered into this day of , 19_ by and between THE COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina (hereinafter referred to as "County ") and THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, a municipal corporation organized and existing pursuant to the provisions of Article 6, Chapter 162A of the North Carolina General Statutes (hereinafter referred to as "District ") W I T N E S S E T H THAT WHEREAS, County has established a Department of Public Utilities for the purpose of operating and managing various utility service systems located within Harnett, County, and WHEREAS, County, through its Department of Public Utilities, has formulated a plan for providing sewer.services for the Bunnlevel and Riverside Communities of Harnett County, said plan having been designated as the Bunnlevel- Riverside Wastewater Facilities Project (hereinafter sometimes referred to as the "Project ") and in connection therewith has obtained certain grant funds for use in constructing facilities to provide such services;,and 473 WHEREAS, the Bunnlevel Community is located within the South Central Water and Sewer District of Harnett County; and WHEREAS, District, in order to provide more comprehensive sewerage collection and disposal .facilities within the Bunnlevel Community has obtained a loan and grant from the Farmers Home Administration of the United States Department of Agriculture to supplement the other grant monies availible. for construction of such facilities; and WHEREAS, District has simultaneous with the execution hereof entered into an agreement with County relative to the County's administration and management of the construction of said sewage collection and disposal facilities for the District; and WHEREAS, District desires to enter into this contract with County for the purpose of obtaining sewerage treatment for its wastewater and to make provision for the management and operation of its completed facilities within the District and the Bunnlevel Community; and WHEREAS, County has heretofore entered into a Wastewater Treatment Agreement with Erwin Mills, Incorporated dated which makes provision for the treatment of wastewater from the Bunnlevel and Riverside Communities; and WHEREAS, County is therefore capable of providing sewerage treatment for the District and, through its Department of Public Utilities, capable of conducting the operation of the sewerage collection and disposal facilities of the District; and WHEREAS, County and District have agreed to enter into this contract for the treatment of the District's wastewater and the operation of the sewerage collection and disposal facilities of the District on a continuing basis and especially for and during the period of the existence: of. the aforementioned Farmers Home Administration loan to the District. NOW, THEREFORE, The parties do contract and agree each with the other as follows: 1. Wastewater Treatment a. It is acknowledged by the parties that as part of County's implementation of the Bunnlevel- Riverside Wastewater Facilities Project, County has entered into a Wastewater Treatment Agreement with Erwin Mills, Incorporated dated providing, among other things, for the treatment of wastewater from the Bunnlevel and Riverside Communities. Pursuant to the terms of said Wastewater Treatment Agreement, . County agrees, for the term thereof, and any extensions or renewals of the same, to provide for the treatment of wastewater from the District's sewerage collection and disposal facilities located in the Bunnlevel Community. b. In the event that the term of the said Wastewater Treatment Agreement should expire, County agrees to make every reasonable effort to secure wastewater treatment for the District's facilities. 2. Management of Facilities The District's sewerage collection and disposal facilities serving the Bunnlevel Community shall be managed and operated by the County, through its Department of Public Utilities, as a County operated system upon the following terms and conditions: r a. The Harnett County Board of Commissioners sitting as the governing body of„the County and sitting as the governing body of the District shall establish and set,the rates of charges for the use of the said sewerage collection and disposal facilities, and for such other fees, charges and penalties as required for the operation thereof, with proper cost accounting procedures to appropriately reflect the cost of these facilities operated by the County Department of Public Utilities relative to the operation of other utility enterprises which are or may be carried on by the said Department of Public Utilities. It is understood that the Harnett County Board of Commissioners shall charge such rates for the use of said sewerage collection and disposal facilities as will appropriately yield sufficient funds to meet operation and maintenance expenses and to pay and retire the long term debts of the District to the Farmers Home Administration. b. The County will manage and operate the said sewerage collection and disposal facilities on an annual budget with the setting of the rates on an annual basis as approved by the District's governing body with proper input and advice from the heretofore created South Central District Advisory Council, which budget shall provide and set forth the handling of the funds such that a reserve fund, depreciation fund, debt payment fund, and surplus fund for the District shall be distinguishable, and further that the County shall maintain a system of accounts for the County Department of Public Utilities which will appropriately account for the various operations of the Utility Department, specifically so that all costs relative to the sewerage collection and disposal facilities with be separately stated. c. The County shall maintain insurance and bonds as required by state law and the County shall properly contract with a certified public accountant for annual audits of the Utility Department. d. The County shall comply with all federal, state and local laws and regulations relative to the operation and management of the District's sewerage collection and disposal facilities. 3. Term a. It is understood by the parties that this contractual arrangement shall continue for a period beginning as of the execution of this contract and extend until that certain loan referred to made by the Farmers Home Administration to the District has been paid in full, being a period of at least forty (40) years; provided however that County may provide for other treatment facilities if the same are constructed or acquired in the future. This contract shall be a continuing contract relative to the furnishing of sewer utility services for the people of the District and this contract shall exist and continue until the District and County shall mutually modify or terminate this contractual arrangement. 475 r 4. Additional Facilities a. County shall be entitled to fund or cause to be funded the construction of any sewer line to be connected to the District's system as an extension within or without the boundaries of the District for the purpose of serving needy users with wastewater utility services as the same shall be determined by the Harnett County Board of Commissioners. b. The rates chargeable to such persons (users) shall be equitably set to properly reflect..cost of operations and maintenance of collection and /or treatment, if applicable. c. In the event it shall become necessary for the District to levy a tax for.the purpose of funding bonded indebtedness of the District then in such event, any person (user) outside the boundaries of the District shall be charged a greater user fee (rate) as will be equivalent to such needed property tax as may be levied; provided, if a tax levy is made, then such user charge for out -of- district users shall not be less than 150% of the user charge of users of the District. d. It is understood and agreed that District shall have no obligation to extend its sewer collection lines outside of the District boundaries. This Management and Operations Contract is approved on behalf of the Farmers Home Administration of the United States Department of Agriculture. This day of , 19_