12211987 (2)HARNETT COUNTY BOARD OF COMMISSIONERS FOR
NORTHWEST WATER 4 SEWER DISTRICT, DECEMBER 21, 1987
CALL TO ORDER
REMARKS
CERTIFICATE OF
CANVASS
The Harnett County Board of Commissioners sitting as the governing body
of Northwest Water and Sewer District met December 21, 1987, in the
County Office Building, Lillington, North Carolina, with the following
members present: Bill Shaw, Rudy Collins, Mack Reid Hudson, Mayo Smith,
and Chairman Lloyd G. Stewart presiding. Others present were: Vanessa
W. Young, Clerk to the Board; Dallas H. Pope, County Manager; Glenn Johnson,
County Attorney, and Kay S. Blanchard, Recording Secretary.
Chairman Stewart called the meeting to order at 7:30 p.m.
John M. Phelps, II, Public Utilities Attorney, made introductory
remarks regarding the character of the meeting and the business to
come before the Board.
The Clerk of the Board of Commissioners and of
the District placed before the Board of Commissioners,
sitting as the governing body of Northwest Water and Sewer
District of Harnett County, a Certificate of Canvass of the
Harnett County Board of Elections certifying to the Board of
Commissioners, sitting as the governing body of Northwest
Water and Sewer District of Harnett County, the results of
the Special Election held for the Northwest Water and Sewer
District of Harnett County on November 3, 1987. The
Certificate was read and considered.
Commissioner Rudy Collins moved the adoption of the
following resolution:
WHEREAS, the Board of Commissioners, sitting as
the governing body of Northwest Water and Sewer District of
Harnett County, has considered the-Certificate of Canvass of
the Harnett County Board of Elections canvassing the
referendum held for the Northwest Water and Sewer District of
Harnett County on November 3, 1987 and certifying the result
thereof to the Board of Commissioners, sitting as the
governing body of Northwest Water and Sewer District of
Harnett County, and has canvassed the result of said Special
Election; NOW, THEREFORE,
BE IT RESOLVED by the Board of Commissioners of
the County of Harnett, sitting as the governing body of
Northwest Water and Sewer District of Harnett County, that it
be and hereby is certified and declared that the number of
voters registered and qualified to vote at said Special
Election was 1,387.
FURTHER RESOLVED, that it be and hereby is
certified and declared that the total number of voters who
voted "YES" in answer to the question,
453
"SHALL the order authorizing $2,600,000 of bonds
secured by a pledge of the faith and credit of
the Northwest Water and Sewer District of
Harnett County to pay capital costs of providing
a water system within and without the District,
including the acquisition and construction of
trunk mains, distribution lines, storage
facilities and a pumping station and meters and
including the acquisition and installation of
necessary machinery and equipment and the
acquisition of land or rights -in -land required
therefor, and a tax to be levied for the payment
thereof, be approved ? ",
was 271. The total number of voters who voted "NO" in answer
to such question was 15.
FURTHER RESOLVED, that a statement substan-
tially in the form hereinafter set forth declaring the result
of said election shall be prepared, delivered to the Clerk of
the Board of Commissioners and of the District for filing and
recordation and published in accordance with law:
STATEMENT OF RESULT OF SPECIAL ELECTION
HELD FOR THE NORTHWEST WATER AND SEWER DISTRICT
OF HARNETT COUNTY
NOVEMBER 3, 1987
WHEREAS, by direction of the Board of
Commissioners of the County of Harnett, sitting as the
governing body of the Northwest Water and Sewer District of
Harnett County, in the State of North Carolina, a special
election was duly called and held for said District on
November 3, 1987 for the purpose of submitting to the
qualified voters of said District the question hereinafter
set forth, and the said Board, sitting as the governing body
of said District, has received from the Harnett County Board
of Elections a certification of the results of the election,
and has determined the result of said election to be as
hereinafter stated; NOW, THEREFORE,
The Board of Commissioners of the County of
Harnett, sitting as the governing body of the Northwest Water
and Sewer District of Harnett County, hereby makes the
following statement of the result of said election pursuant
to The Local Government Bond Act:
(1) The number of voters registered and
qualified to vote at said election was 1,387.
(2) The total number of voters who voted "YES"
in answer to the question,
"SHALL the order authorizing $2,600,000 of bonds
secured by a pledge of the faith and credit of
the Northwest Water and Sewer District of
Harnett County to pay capital costs of providing
a water system within and without the District,
including the acquisition and construction of
trunk mains, distribution lines, storage
facilities and a pumping station and meters and
including the acquisition and installation of
necessary machinery and equipment and the
acquisition of land or rights -in -land required
therefor, and a tax to be levied for the payment
thereof, be approved ? ",
was 271. The total number of voters who voted "NO" in answer
to such question was 15. The question in the form submitted
was approved by the affirmative vote of a majority of those
who voted thereon at said election.
Any action or proceeding challenging the
regularity or validity of this bond referendum must be begun
within 30 days after
(date of publication)
Board of Commissioners of
the County of Harnett,
sitting as the governing
body of Northwest Water and
Sewer District of Harnett
County, North Carolina
Commissioner Mayo Smith seconded the motion, and
the motion was adopted by the following vote:
AYES:
NAYS:
1
461
John M. Phelps, II, Public Utilities Attorney, presented a resolution
authorizing execution of water purchase contract by the Northwest Water
and Sewer District with the Northeast Metropolitan Water District of
Harnett County and Harnett County. Commissioner Collins made a motion
to adopt the resolution. Commissioner Shaw seconded the motion and it
passed with a unanimous vote. The resolution and water purchase contract
is copied in full at the end of these minutes dated December 21, 1987,
as document No. 1.
There being no further business, the meeting duly adjourned at 7:40 p.m.
DOCUMENT NO. 1:
_ac. AI AMPS
lo d , tewar', Chairman
-7Cnwe—.1
wJ w
Vanessa W. Young, Clerri th Board
X61. 4 7A4L.G1CA t d
Kay S dBlanchard, Recording Secretary
RESOLUTION AUTHORIZING EXECUTION OF
WATER PURCHASE CONTRACT WITH
THE NORTHEAST METROPOLITAN WATER DISTRICT
OF HARNETT COUNTY AND HARNETT COUNTY
WHEREAS, the Harnett County Board of Commissioners, sitting as
the governing body of the Northwest Water and Sewer District of
Harnett County (hereinafter "District "), has examined the Water
Purchase Contract between the Northeast Metropolitan Water District of
Harnett County, the County of Harnett (hereinafter "County ") and the
District, attached hereto As Exhibit "A "; and
WHEREAS, District is in need of treated water for its customers
as fully described in said Water Purchase Contract and 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 Northwest Water
and Sewer District of Harnett County, that:
1. Northwest Water and Sewer District of Harnett County is
hereby authorized to and shall enter into the Water Purchase Contract
attached hereto as Exhibit "A ".
2. The Northwest Water and Sewer District of Harnett County and
its officers and agents are hereby directed to execute said Water
Purchase Contract.
Duly adopted this 2lstday of December, 1987, upon motion made by
commissioner Collins , seconded by Commissioner Shaw and passed
by the following vote:
Ayes 5 Noes 0 Absent 0 Abstained 0
HARNETT COUNTY BOARD OF COMMISSIONERS
sitting as the governing body of the
NORTHWEST WATER AND SEWER DISTRICT
OF HARNETT COUNTY
TT:
J.�d✓
W• V
Vanessa W. Young, Cle
By:
Note: Exhibit "A" on following page.
Stewart, Chairman
462
EXHIBIT A
NORTH CAROLINA
WATER PURCHASE CONTRACT
HARNETT COUNTY
THIS CONTRACT for the sale and purchase of water is entered into as of
the _ day of , 19, between the NORTHEAST METROPOLITAN WATER
DISTRICT OF HARNETT COUNTY (hereinafter "Northeast Metro "), and the COUNTY
OF HARNETT (hereinafter "County "), said Northeast Metro and County shall be
collectively referred to herein as "Seller" and the NORTHWEST WATER AND
SEWER DISTRICT OF HARNETT COUNTY, (hereinafter "Purchaser ")
W I T-N E S 5 E T H:
THAT WHEREAS, the Purchaser is a County Water and Sewer District, duly
organized and existing pursuant to the provisions of Article 6, Chapter
162A of the North Carolina General Statutes and by that certain Resolution
dated March 23, 1987 and adopted by the Harnett County Board of
Commissioners entitled "Resolution Creating the Northwest Water and Sewer
District of Harnett County "; and
WHEREAS, Northeast Metro is a metropolitan water district organized
and existing under the laws of the State of North Carolina; and
WHEREAS, County is a body politic organized and existing under the
laws of the State of North Carolina; and
WHEREAS, the Purchaser is organized and established for the purpose of
constructing and operating a water supply distribution system serving water
users within the area described in plans now on file in the Office of the
Purchaser and to accomplish this purpose, the Purchase? will require a
supply of treated water; and
WHEREAS, Northeast Metro owns a water production system and a water
supply distribution system, and County is operator thereof under that
certain Lease dated May 30, 1980, entered into between Northeast Metro and
County; and
WHEREAS, the water production system and water supply distribution
system of Seller (Northeast Metro and County as described above) has a
capacity currently capable of serving the present customers of the Seller's
system and the estimated number of water users to be served by the said
Purchaser as shown in the plans of the system now on file in the Office of
the Purchaser; and
WHEREAS, by Resolution entitled "Resolution Authorizing Execution of
Water Purchase Contract with the Northwest Water and Sewer District of
Harnett County, duly adopted by the District Board of the Northeast
Metropolitan Water District of Harnett County at its meeting on
, the sale of said water to the Purchaser as provided herein
was approved, and the execution of this contract by Northeast Metro was
duly authorized; and
WHEREAS, by Resolution entitled "Resolution Authorizing Execution of
Water Purchase Contract with the Northwest Water and Sewer District of
Harnett County ", duly adopted by the Harnett County Board of Commissioners
at its meeting on , the sale of said water to the Purchaser as
provided herein was approved, and the execution of this contract by County
was duly authorized; and
463
WHEREAS, by Resolution entitled "Resolution Authorizing Execution of
Water Purchase Contract with the Northeast Metropolitan Water District of
Harnett County and the County of Harnett" duly adopted by the Harnett
County Board of Commissioners, sitting as the governing body of the
Northwest Water and Sewer District of Harnett County at its meeting on
, the purchase of said water from the Seller as provided herein
was approved, and the execution of this contract by Purchaser was duly
authorized;
NOW THEREFORE, in consideration of the foregoing and the mutual
agreements hereinafter set forth,
A. THE SELLER AGREES:
1. (Quality and Quantity) To furnish the Purchaser at the point
of delivery hereinafter specified, during the term of this contract or any
renewal or extension thereof, potable treated water meeting applicable
purity standards of the Division of Health Services, Department of Human
Resources of the State of North Carolina, in such quantity as may be
required by the Purchaser not to exceed ten million, five hundred thousand
(10,500,000) gallons per month.
2. (Point of Delivery and Pressure) That water will be
furnished at a reasonable constant pressure calculated at fifty (50) pounds
per square inch from an existing sixteen (16) inch main supply at a point
located at or near the intersection of North Carolina Highway 210 and State
Road 1403 within a waterline and /or related appurtenance easement to be
acquired by Purchaser. If a greater pressure than that normally available
at the point of delivery is required by the Purchaser, the cost of
providing such greater pressure shall be borne by the Purchaser. Emergency
failures of pressure or supply due to main supply line breaks, power
failure, flood, fire and use of water to fight fire, earthquake or other
catastrophe shall excuse the Seller from this provision for such reasonable
period of time as may be necessary to restore service.
3. (Metering Equipment) To furnish, install, operate, and
maintain at its own expense at point of delivery, the necessary metering
equipment, including a meter house or pit, and required devices of standard
type for properly measuring the quantity of water delivered to the
Purchaser and to calibrate such metering equipment whenever requested by
the Purchaser but not more frequently than once every twelve (12) months.
A meter registering not more than two percent (2%) above or below the test
result shall be deemed to be accurate. The previous readings of any meter
disclosed by test to be inaccurate shall be corrected for the three (3)
months previous to such test in .accordance with the percentage of
inaccuracy found by such tests. If any meter fails to register for any
period, the amount of water furnished during such period shall be deemed to
be the amount of water delivered in the corresponding period immediately
prior to the failure, unless Seller and Purchaser shall agree upon a
different amount. The metering equipment shall be read on the first day of
each month. An appropriate official of the Purchaser at all reasonable
times shall have access to the meter for the purpose of verifying its
readings.
4. (Billing Procedure) To furnish the Purchaser not later than
the fifth (5) day of each month, with an itemized statement of the amount
of water furnished the Purchaser during the preceding month.
484
B. THE PURCHASER AGREES:
1. (Rates and Payment Date) To pay the Seller, not later than
the tenth (10) day of each month, for water delivered in accordance with
the following schedule of rates:
a. One thousand five hundred fifteen dollars ($1,515.00)
for the first one million five hundred (1,500,000) gallons, which amount
shall also be the minimum rate per month.
b. One dollar and one cent ($1.01) per one thousand (1000)
gallons for water in excess of one million five hundred (1,500,000)
gallons.
c. It is agreed that the minimum rate per month as stated
in (a) above shall not be applicable until six (6) months after the last
notices for connection have been mailed to potential water customers of the
Purchaser by the Harnett County Department of Public Utilities; and up to
said time the minimum rate per month becomes applicable, Purchaser shall
pay only for such water as is delivered to Purchaser at the rate of $1.01
(one Dollar and one cent) per 1000 (one thousand) gallons.
(Connection Fee) To pay as an agreed cost, a connection fee
to connect the Seller's system with the system of the Purchaser, a sum
equal to the amount of the cost of the installation of the meter, meter
vault and related appurtenances and the cost of the laying and installation
of the necessary pipeline or pipelines to connect the system of the Seiler
to the system of the Purchaser at the boundaries of the Northwest Water and
Sewer District.
3. (Maintenance of Certain Lines) To maintain all water
distribution pipelines which connect the Seller's system to the system of
the Purchaser, said line or lines being located between the meter facility
(described in paragraph A(3) above) and the boundary of the Northwest Water
and Sewer District.
C. It is further mutually agreed between the Seller and the
Purchaser as follows:
1. (Term of Contract) That this contract shall extend for a
term of forty (40) years from the date of the initial delivery of any water
as shown by the first bill submitted by the Seller to the Purchaser 'and,
thereafter may be renewed or extended for such term, or terms, as may be
agreed upon by the Seller and Purchaser.
2. (Delivery of Water) That thirty (30) days prior to the
estimated date of completion of construction of the Purchaser's water
supply distribution system, the Purchaser will notify the Seller in writing
the date for the initial delivery of water.
3. (Water for Testing) When requested by the Purchaser, the
Seller will make available to the contractor at the point of delivery, or
other point reasonable close thereto, water sufficient for testing,
flushing, and trench filling' the system of the Purchaser during
construction, irrespective of whether the metering equipment has been
installed at that time, at a flat charge of one dollar and one cent ($1.01)
per one thousand (1000) gallons which will be paid by the contractor or, on
his failure to pay, by the Purchaser.
4
466
4. (Failure to Deliver) That the Seller will, at all times,
operate and maintain its system in an efficient manner and will take such
action as may be necessary to furnish the Purchaser with quantities of
water required by the Purchaser. Temporary or partial failures to deliver
water shall be remedied with all possible dispatch. In the event of an
extended shortage of water, or the supply of water available to the Seller
is otherwise diminished over an extended period of time, the supply of
water to Purchaser's consumers shall be reduced or diminished in the same
ratio or proportion as the supply to Seller's consumers is reduced or
diminished.
5. (Modification of Contract) That the provisions of this
contract pertaining to the schedule of rates to be paid by the Purchaser
for water delivered are subject to modification at the end of every one
(1) year period. Any increase or decrease in rates shall be based on a
demonstrable increase or decrease in the costs of performance hereunder.
Such costs shall not include increased capitalization of the Seller's water
distribution system except as such costs relate directly to increasing the
capacity of services to the Purchaser. Such costs may include increased
capitalization of the Seller's water production facility system. Other
provisions of this contract may be modified or altered by mutual agreement.
6. (Future Water Transmission and Connection) In the event
County and /or Northeast Metro elect to supply and sell water to any
customers or other water distribution systems located outside of the
boundaries of the Northwest Water and Sewer District of Harnett County and
desire to do so by connecting to and transporting water through the water
distribution system of Purchaser, it is agreed that County and /or Northeast
Metro may, at no cost to either, connect to and transport water through the
water distribution system of Purchaser for the purpose of suppling and
selling water to customers or other water distribution systems outside of
the Northwest Water and Sewer District, whether within the County of
Harnett or otherwise. In the event County and /or Northeast Metro should
elect to supply and sell water as stated herein, County and /or Northeast
Metro shall cause a meter to be installed at the connection point and the
cost thereof shall not be borne by Purchaser.
7. (Regulatory Agencies) That this contract is subject to such
rules, regulations, or laws as may be applicable to similar agreements in
this State and the Seller and Purchaser will collaborate in obtaining such
permits, certificates, or the like, as may be required to comply therewith.
8. (Miscellaneous) That the construction of the water supply
distribution system by the Purchaser is being financed by a loan made or
insured by, and /or a grant from the. United States of America, acting
through the Farmers Home Administration of the United States Department of
Agriculture, and the provisions hereof pertaining to the undertakings of
the Purchaser are conditioned upon the approval, in writing, of the State
Director of the Farmers Home Administration.
9. (Successor to the Purchaser) That in the event of any
occurrence rendering the Purchaser incapable of performing under this
contract, any successor of the Purchaser, whether the result of legal
process, assignment, or otherwise, shall succeed to the rights of the
Purchaser hereunder.
IN WITNESS WHEREOF, the parties hereto, acting under authority of
their respective governing bodies, have caused this contract to be duly
executed in triple counterparts, each of which shall constitute an
original.
NORTHEAST METROPOLITAN WATER
DISTRICT OF HARNETT COUNTY
Ch ir, V r i
Chairman of the District Board
Vanessa W. Youncf/ Clerk
(SEAL)
Attkat:
By:
Vanessa W. Young, Cler
(SEAL)
By:
Vanessa W. Young, Cl
(SEAL)
COUNTY OF HARNETT
lo • . Stewart, Chairman
Harnett County Board of Commissioners
NORTHWEST WATER AND SEWER
DISTRICT OF HARNETT COUNTY
aka' Ar
L oy• St- art, C airman of the
Harnett County Board of Commissioners
sitting as the governing body of the
Northwest Water and Sewer District
of Harnett County
This contract is approved on behalf of the Farmers Home Administration
this _ day of , 19_
By:
NORTH CAROLINA
HARNETT COUNTY
Title:
Personally appeared before me, the undersigned Notary Public, Vanessa
W. Young, who, being by me duly sworn, says that she knows the common seal
of the Northeast Metropolitan Water District of Harnett County, and is
acquainted with Charles V. Sikes who is the Chairman of the governing Board
of Northeast Metropolitan Water District of Harnett County and that she,
the said Vanessa W. Young, is the Clerk to said Board and saw the the said
Charles V. Sikes sign the foregoing instrument in the name of Northeast
Metropolitan Water District of Harnett County and that she, the said
Vanessa W. Young, Clerk as aforesaid, affixed said seal of said District
hereto and signed her name in attestation of said instrument in the
presence of the said Charles V. Sikes, Chairman of said Board,. all as
authorized by the governing body of said District.
WITNESS my hand and Notarial Seal, this the gt day of ° .�J ,
19al.
My Commission Expires:
9 -9R- 9rg