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03071988528 HARNETT COUNTY BOARD OF COMMISSIONERS MEETING, MARCH 7, 1988 The Harnett County Board of Commissioners met in regular session on Monday, March 7, 1988, at 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: Dallas H. Pope, County Manager; Vanessa W. Young, Clerk to the Board; Glenn Johnson, County Attorney, and Kay S. Blanchard, Recording Secretary. Chairman Stewart called the meeting to order at 9:00 a.m. Commissioner Smith offered the invocation. The minutes from the regular Board Meeting on February 15, 1988, were approved. RUBY CURRIN RECOGNIZED Mrs. Ruby T. Currin was recognized by the Board on her retirement. ON RETIREMENT Commissioner Shaw made a motion to adopt a resolution commending Mrs. Currin. Commissioner Smith seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated March 7, 1988, as document No. 1. Chairman Stewart pr- esented Mrs. Currin with the resolution and a plaque from the County honoring her for forty years of service. Chairman Stewart then recessed the meeting for reception for Mrs. Currin. DOT AIRPORT COMMITTEE BRIEFING RE: HANGAR CONSTRUCTION CABLEVISION REPORT Chairman Stewart called the meeting back to order at 9:15 a.m. Ray Stone, Highway Maintenance Engineer with the North Carolina Department of Transportation appeared before the Board to discuss road matters and situations in Harnett County. Eugene Stewart, Chairman, Harnett County Airport Committee, briefed the Board on proposed hangar construction at Harnett County Airport. Mr. Stewart stated that the Airport Committee recommended approval of the proposal. The matter was tabled until additional information can be obtained. Terry Brown, General Manager, Southern Cablevision, reported on the progress of the construction of cablevision in the County. Mrs. Brown stated that citizens in the Keith Hills area are now receiving cablevision service. SERVICE AGREEMENT WITH Commissioner Hudson made a motion that the County enter into a service RKSDALE CONSULTANTS agreement with Ragsdale Consultants, P.A. to provide amendment to Dunn - DUNN -ERWIN 201 PLAN /Erwin 201 Facilities Planning Report consisting of an abbreviated 201 plan for the Bunnlevel- Riverside Community to qualify for federal, state, CDBG and EPA grant and loan funding. Commissioner Smith seconded the motion and it passed with a unanimous vote. SCHOOL FACILITIES CRITICAL NEEDS FUND APPLICATION AMBULANCE SERVICE NAME CHANGED TO EMERGENCY MEDICAL SERVICE PIC POSITIONS TERMIN. FEASIBILITY STUDY FOR PROPOSED SOUTHWEST WATEER $ SEWER DIST. TAX LISgING DEADLINE EXTENDED Commissioner Bill Shaw was excused from this meeting at 10:00 a.m. to attend a meeting in Fayetteville. Dallas H. Pope, County Manager, presented for consideration an application to be jointly submitted to the State by the Harnett County Board of Commissioners and the Harnett County Board of Education for Critical School Facilities Needs Fund. Commissioner Collins made a motion that the application be approved. Commissioner Smith seconded the motion and it passed with a unanimous vote. Dallas H. Pope, County Manager, requested that the name of the Ambulance Service be changed to Harnett County Emergency Medical Service. Mr. Pope stated that the change is appropriate due to the Ambulance Service being an advanced life support unit. Commissioner Smith made a motion that the name be changed as requested. Commissioner Hudson second- ed the motion and it passed with a unanimous vote. Based on Harnett County's requested position changes on the Private Industry Council, Commissioner Smith made a motion that the position of Employment Service and Industry be terminated effective March 7, 1988, and personnel serving in these positions, Sue McKee and Louise Bruckner, be provided a letter commending them for their service to Harnett County while serving on the Private Industry Council. Commissioner Collins seconded the motion and it passed with a unanimous vote. Commissioner Hudson made a motion to enter into service agreement with Black & Veatch, Inc. to conduct an engineering feasibility study for the proposed Southwest Water & Sewer District. Commissioner Collins seconded the motion and it passed with a unanimous vote. Bobby Wicker, Tax Administrator, requested that the tax listing deadline be extended from February 15, to March 15, 1988. Commissioner Smith made a motion that the tax listing deadline be extended to March 15, 1988. 523 1 EQUALIZATION & REVIEW SCHEDULE FEE SCHED. FOR TAX DEPT. Commissioner Collins seconded the motion and it passed with a unanimous vote. Commissioner Hudson made a motion that the following schedule be used for 1988 Board of Equalization and Review: April 11 & 14 April 18 & 21 April 25 & 28 Monday & Thursday Monday & Thursday Monday & Thursday 9 a.m. - 12 noon 9 a.m. - 12 noon 9 a.m. - 12 noon Commissioner Collins seconded the motion and it passed with a unanimous vote. Commissioner Collins made a motion to adopt the following fee schedule for the Tax Department: $ .50 per copy up to 10 sheets 2.00 per copy laser printer 5.00 per copy for blue -line copy of tax map 1" = 400' Commissioner Hudson seconded the motion and it passed with a unanimous vote. EASE AGREEMENT Glenn Johnson, County Attorney, presented for consideration a lease UNN AREA COMMITTEE agreement between Harnett County and The Dunn Area Committee of 200, Inc. F 200, INC. Commissioner Smith made a motion to enter into the lease agreement. Commissioner Hudson seconded the motion and it passed with a unanimous vote. The lease agreement is copied in full at the end of these minutes dated March 7, 1988, as document No. 2. AX REFERENDUM FOR OATS GROVE EMER. ESCUE SER. DIST. UMBERLAND COUNTY ONTRACT FOR WATER INES UUTH CENTRAL ESOLUTION ' ESOLUTION RE: ATER SERVICE IN CUMBERLAND COUNTY RESOLUTION RE: RULES & REG. FOR CUM. CO. WATER SERV. BUDGET AMENDMENTS Glenn Johnson, County Attorney, presented a resolution authorizing a tax referendum for Coats Grove Emergency Rescue Service District. Commis- sioner Hudson made a motion to adopt the resolution. Commissioner Smith seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated March 7, 1988 as document No. 3. John Phelps, Public Utilities Attorney, presented a resolution authorizing execution of contract and agreement with Cumberland County. Commissioner Smith made a motion to adopt the resolution. Commissioner Collins second- ed the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated March 7, 1988, as docu- ment No. 4. John Phelps, Public Utilities Attorney, presented a resolution authorizing execution of contract and agreement with South Central Water amd Sewer District of Harnett County. Commissioner Hudson made a motion to adopt the resolution. Commissioner Collins seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated March 7, 1988, as document No. 5. John Phelps, Public Utilities Attorney, presented a resolution authorizing execution of contract and agreement regarding water service in Cumberland County. Commissioner Hudson made a motion to adopt the resolution. Commissioner Collins seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated March 7, 1988, as document No. 6. John Phelps, Public Utilities Attorney, presented a resolution establish- ing rules and regulations for operation of Cumberland County Water Ser- vices. Commissioner Smith made a motion to adopt the resolution. Commis- sioner Hudson seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated March 7, 1988, as document No. 7. Dallas H. Pope, County Manager, requested the following budget amendment for Public Utilities Water Fund: Code 30- 8100 -016 Maintenance & Repair - Equip. $10,000. increase Code 30- 8100 -013 Utilities 6,500. decrease Code 30- 8100 -054 Insurance & Bonds 3,500. decrease Commissioner Collins made a motion to approve the budget amendment. Commissioner Smith seconded the motion and it passed with a unanimous vote. Dallas H. Pope, County Manger, requested the following budget amendment for Public Utilities Sewer Fund: Code 32- 8300 -034 Chemicals $3,700. increase Code 32- 8300 -016 Maintenance & Repair - Equip. 1,500. decrease Code 32- 8300 -054 Insurance & Bonds 2.200. decrease 530 REPORTS Commissioner Collins made a motion to approve the budget amendment. Commissioner Hudson seconded the motion and it passed with a unanimous vote. Dallas H. Pope, County Manager, requested the following budget amendment for South Central Construction Fund: Code Code Code Code Code Code Revenue: Code Code Code Code 36- 4100 -030 36- 4100 -020 36- 4100 -015 36- 4100 -070 36- 4100 -080 36- 4100 -050 36- 3730 -000 36- 3290 -000 36- 3450 -000 36- 3350 -000 Engineering Legal & Administration Existing Supply Facilities Interest Paid Contingency Property Surveys $54,620. increase 40,000. increase 30,000. increase 65,000. increase 18,089. decrease 54,620. decrease Tap -On Fees 24,000. increase Interest on Investments 18,000. increase Sales Tax Reimbursement 75,000. increase Miscellaneous 89. decrease Commissioner Collins made a motion to approve the budget amendment. Commissioner Smith seconded the motion and it passed with a unanimous vote. Bobby Wicker, Tax Administrator, requested the following budget amendment: Code 10- 4500 -004 Professional Services Code 10- 4500 -011 Telephone & Postage Code 10- 4500 -026 Advertising $ 4,000. increase 2,000. increase 2,000. decrease Additional funds were needed to mail "Second Tax Notices" and to cover legal expenses for collecting delinquent tax. Commissioner Smith made a motion to approve the budget amendment. Commissioner Hudson seconded the motion and it passed with a unanimous vote. Jack Bryan, Director, Social Services, requested the following budget amendment: Code 10- 7700 -065 A.F.D.C. - Foster Care Code 10- 7710 -145 A.F.D.C. - E. A. $12,000. decrease 12,000. increase Commissioner Smith made a motion to approve the budget amendment. Commis- sioner Hudson seconded the motion and it passed with a unanimous vote. Henry Thompson, Director, Health Department, requested the following budget amendment for Home Health: Code 10- 7610 -011 Telephone & Postage Code 10- 7610 -016 Maintenance & Repair Code 10- 7610 -025 Books & Publications Code 10- 7610 -033 Materials & Supplies Code 10- 7610 -045 Contracted Services $ 1,130. increase 130. increase 65. increase 200. increase 36,800. increase Commissioner Smith made a motion to approve the budget amendment. Commis- sioner Hudson seconded the motion and it passed with a unanimous vote. The Tax Attorney's report was filed with the Board and is copied in full at the end of these minutes dated March 7, 1988, as document No. 8. Bobby Wicker, Tax Administrator, reported on activities of the Tax Depart- ment for the month of February, 1988. FEE FOR LATE LISTING Commissioner Smith made a motion to increase fee for advertising late - OF PROPERTY listing of property from $3.00 to $4.00. Commissioner Collins seconded the motion and it passed with a unanimous vote. TAX REFUNDS Commissioner Collins made a motion to approve the following tax refunds: 1. Elmon Williams, Jr. & Iris D. Honeycutt, 203 Briarcliff Rd., Dunn, NC 2. Lucille Graham Cannady, P. 0. Box 66, Olivia, NC 3. Terry G. Mullins, 912 Ridgeway Ct., Orange Park, FL 4. Wayne P. & Joy Farrar, Rt. 3, Box 231, Lillington, NC 5. W.A. & Mary Horton, Rt. 1, Box 105, Lillington, NC 6. Annie A. Kelly, Rt. 2, Box 82, Lillington, NC 7. James L. Weeks, 1119 Friendly Rd., Dunn, NC 8. Patsy Driver, Rt. 3, Box 89 -A, Cameron, NC 9. Elmon Williams, Jr. & Iris D. Honeycutt, 203 Briarcliff Rd., Dunn, NC $ 19.69 15.35 12.48 102.05 27.50 62.95 45.05 81.97 28.33 53i 10. David Lacy Graham, 2344 Heywood Ave., Charlotte, NC 11. Bethune Enterprises, 300 West Front St., Lillington, NC 12. Charles W. Whittenton, 708 W. Edgerton St., Dunn, NC 13. Tammy Sue Ivey, Rt. 2, Box 52, Linden; NC 14. Robert & Vennie Tripp, 202 Guy Rd., Dunn, NC 15. Johnny Ray Angel, Rt. 14, Box 99, Sanford, NC 16. W. C. Gardner, Rt. 2, Box 273 -A, Wade, NC 17. Mable Flowers Johnson, Rt. 2, Box 271, Dunn, NC 18. Luther R. Johnson & Ray Stewart, Rt. 2, Box 221, Dunn, NC 19. Carolina Lakes, Inc., P. 0. Box 2250, Sanford, NC 20. Carolina Lakes, Inc., P. 0. Box 2250, Sanford, NC 21. John Deer Leasing Co., John Deer Rd., Moline, IL 22. William M. & Faye Davis, 209 4th St., Erwin, NC 23. William Kinlaw & Evelyn Cameron, 118 Jones Dr., Dunn, NC 24. William Clint Mason, Rt. 1, Box 439 -B, Spring Lake, NC 25. Nancy R. Silvers, Rt. 2, Box 190, Angier, NC 26. George B. Little, Rt. 14, Box 153, Sanford, NC 27. Adelaide R. Melvin, Box 7, Linden, NC 17.48 8.41 54.78 13.81 109.20 18.99 260.93 216.94 21.10 223.45 87.20 356.73 31.83 81.27 7.62 105.27 11.15 5.52 Commissioner Smith seconded the motion and it passed with a unanimous vote. REPORTS Major Larry Knott, Chief Deputy, Sheriff's Department, presented the Sheriff's Department report for the month of February. The Inspections Department report for the month of February was filed with the Board. Eddie Wimberly, Ambulance Service., reported on activities of the Ambulance Service and briefed the Board on the increase of calls. ADJOURNMENT There being no further business, the Harnett County Board of Commisisoners __ Meeting of March 7, 1988, duly adjourned at 11:55 a.m. DOCUMENT NO. 1. HARNETT COUNTY, NORTH CAROLINA RESOLUTION That, Whereas, Ruby T. Currin began her services to Harnett County more than forty -nine years ago in the Clerk's office; and Whereas, in 1939, Ruby T. currin accepted her first position in the Clerk's office of Harnett County and thereafter faithfully served that office in numerous capacities for forty years of employment; undertaking and discharing her responsibilities in both an exemplary and inspirational manner; and Whereas, Ruby T. Currin was born in Coats, North Carolina, graduated from Coats High School, graduated from National School of Commerce in Charlotte, North Carolina, and worked under five Clerk's during her tenure in the Clerk's office; and Whereas, Ruby T. Currin's conscientious dedication and devotion, her excellency in the performance of her duties, and her willingness and concern to help others won the esteem of her co- workers who called upon her for encouragement, advice, and leadership; and Whereas, Ruby T. Currin's high morals, kind spirit, and just manner will continue to be remembered in the hearts of all who knew her; and Whereas, Ruby T. Currin left the service of the Harnett County Clerk's office on February 29, 1988, Now, Therefore, Be It Resolved By the Harnett County Board of Commissioners, that Ruby T. Curran retired from her loyal and dedicated service to Harnett County with great honor and distinction. That Ruby T. Currin be and she is hereby commended on behalf of all the citizens of Harnett County for her invaluable and immeasurable service to them which contributed significantly to the growth and prosperity of the County. That a copy of this resolution shall be given to Ruby T. Curran, a copy spread upon the minutes of this Board, and a copy to the media. This Seventh Day of Marc, Nineteen Hundred and Eighty- Eight. ATTEST: HARNETT COUNTY BOARD OF COMMISSIONERS Vanessa W. Young, Cle ewart, Chairman 532 DOCUMENT NO. 2. NORTH CAROLINA, HARNETT COUNTY. LEASE AGREEMENT. THIS LEASE AGREEMENT, Made and entered into as of the day of , 1987, by and between HARNETT COUNTY, a body politic and corporate organized and existing under the laws of the State of North Carolina, Front Street, Lillington, North Carolina, party of the first part, hereinafter called "Lessor," and THE DUNN AREA COMMITTEE OF 200, INC., a nonprofit corporation organized and existing under the laws of the State of North Carolina, Magnolia Avenue, Dunn, North Carolina, party of the second part, hereinafter called "Lessee"; W I T N E S S E T H: That Lessor, in consideration of the agreements and cove- nants hereinafter set forth to be fulfilled by Lessee, does hereby demise and lease to said Lessee, for a period ending April 15, 1993 plus the remaining term of any sublease then in effect upon the below described premises as hereinafter set forth, and beginning on the _ day of , 19_, the below described premises, to wit: A parcel of land situate and being in Averasboro Township, Harnett County, North Carolina, comprised of a -block or square in the Town of Dunn, North Carolina, bounded on the north by Bay Street: on the east by Magnolia Avenue; on the south by Canary Street; and on the west by Clinton Avenue, the same being a lot 300 ft. by 300 ft.- in size and being the land described in the deed of P. T. Massengill and wife and others- regis- tered in Book 198, Page 290, in the office.of the Register of Deeds of Harnett County. The above described property is the Third Tract in the deed from the Board of Trustees of Dunn Graded School District to the Board of Education of Harnett County dated June 15, 1927, and recorded in Book 222, Pages 356 -357, Harnett County Registry. And being the same lands conveyed to Harnett County by Board of Education of Harnett County by deed dated April 14, 1987, and recorded in Book 840, at Page 813, - Harnett County.Registry.. Such lease shall be on the following terms and conditions: 14 Lessee shall have use of the above described property pursuant to the terms and conditions hereof without rental charge. 2. Lessee shall use the above described premises only for the purpose of maintaining a small business incubator facility as described in the Incubator Facilities Program created by the North Carolina Legislature in 1983. Said facility shall be main- tained pursuant to rules and guidelines established by the staff and Board of Directors of the North Carolina Technological Development Authority and in accordance with the incubator facility contract between the Lessee and said Authority executed by the Lessor on October 26, 1987. If said premises are used for any other purpose whatsoever, this lease shall be terminable at the option of the Lessor without notice. 3. Lessee shall return the above described premises to Lessor at the expiration of this lease in as . good condition as when it'firetoccupied the same, ordinary wear and tear excepted. Lessee shall be solely and exclusively responsible for all main- tenance, repair and upkeep of the subject premises, and any improvements thereto which might be necessary in connection with its usage thereof. Further, Lessee shall be liable for any damage done to said premises during its occupancy thereof. 53d 4. Lessee shall be solely and exclusively responsible for . the cost of all utilities used in connection with the subject premises during the term of this lease. 5. Lessor shall keep the above described premises insured under its umbrella policy for fire and casualty insurance cover- age in an amount of not less than Two Hundred Seventy Thousand Dollars ($270,000.). The premium portion for such insurance on the leased premises shall be reimbursed by Lessee to Lessor upon demand therefor by Lessor. 6. Lessee shall have the right to sublease portions of the above described premises as contemplated by the Incubator Facilities Program and in compliance with the rules and guide- lines of such program. Except as so allowed, Lessee shall not assign this lease or sublet any part of the subject premises. 7. Lessee shall not make any changes in or additions to the leased premises without the prior written consent of Lessor, except that Lessee shall have the right to make improvements which enhance the appearance and value of said premises which are consistent with the needs of Lessee as herein set forth. 8. The termination date of this lease agreement shall be April 15, 1993 as above set forth. Such notwithstanding, the Lessee shall have the option to renew this lease for up to five (5) successive periods of one (1) year each, commencing on April 15, 1993. All of the terms and conditions of this lease shall apply during any renewal period. The option to renew hereby granted to Lessee shall be exercised by written notice delivered to Lessor not less than thirty (30) days prior to the termination of the lease period then in effect. 9. Lessee shall hold Lessor harmless from and against any loss, damage or liability of any sort whatsoever arising out of the use of the subject premises by Lessee or anyone else during the term of this lease; Lessee shall bear the cost of any defense which might be necessitated by or on behalf of the Lessor as a result of Lessee's occupancy and use of said premises; and Lessee shall well, fully and truly indemnify Lessor from and against any loss or damage of any type whatsoever so arising. IN WITNESS WHEREOF, Harnett County has caused this instru- ment to be executed in its name by the Chairman of the Harnett County Board of Commissioners and attested by the Clerk to said Board and sealed with the common seal of said County, all under authority granted by the Harnett County Board of Commissioners, and The Dunn Area Committee of 200, Inc. has caused this instru- ment to be executed in its corporate name by its President, attested by its Secretary and its corporate seal to be hereunto affixed, all by authority of its Board of Directors duly given, the day and year first above written. HARNETT COUNTY ATTE (SEAL) By: Clerk, Harnett nty Board of Commis ners man, Harnett County Board of Commissioners 534 DOCUMENT NO. 3. R E S O L U T I O N BE IT RESOLVED by the Board of Commissioners for the County of Harnett: Section 1: A special property tax referendum is hereby called to be held between 6:30 a.m. and 7:30 p.m. on Tuesday, May 3, 1988, at which time there shall be submitted to the qualified voters of Coats -Grove Emergency Rescue Service District (the boundaries of which are shown on Exhibit A attached) the question stated in the Notice of Special Property Tax Referendum set forth in section three of this resolution. Section 2: For said referendum, (i) the regular regis- tration books for elections in precincts included in said district shall be used and the registration books, process or records shall be open for the registration of qualified persons and for public inspection in the manner, under the conditions and at the times and places as provided in said notice set forth in Section 3 of this resolution, (ii) the registrars, judges, and other officers of elections appointed by the County Board of Elections of Harnett County for such precincts and voting places in said precincts shall be the elec- tion officers for such precincts and voting places, and (iii) the precincts and voting places shall be those fixed by said County Board of Elections as provided in said notice set forth in Section 3 of this resolution, subject to change as provided by law. Section 3: The County Auditor and ex officio Clerk shall cause a notice to be published in The Harnett County News and The Daily Record once at least fourteen days before April 4, 1988 (being the last day on which persons may register for said referendum) and once again not less than seven days before said day, such notice to read substantially as follows: NOTICE OF SPECIAL PROPERTY TAX REFERENDUM IN THE COATS -GROVE EMERGENCY RESCUE SERVICE DISTRICT A special property tax referendum will be held in the Coats -Grove Emergency Rescue Service District, Harnett County, North Carolina, between 6:30 a.m. and 7:30 p.m., on Tuesday, May 3, 1988, at which time there will be submitted to the qualified voters of said district the following question: "Shall Harnett County be authorized to levy annually a property tax at an effective rate not in excess of eight cents ($.08) on the One Hundred Dollars ($100.00) value in the Coats -Grove Emergency Rescue Service District for the purpose of providing emergency ambulance and rescue squad service ?" 5S3 1 For said referendum the regular registration books for elec- tions in precincts included In said district will be used and the registration books, process or records will continue to be open for the acceptance of registration applications and the registra- tion of qualified persona between the hours of 8:00 a.m. and 5 :00 p.m. on Monday to Friday, inclusive, of each week at the Office of the County Board of Elections of Harnett County located at Agriculture Building, 19 East Front Street, In Lillington. In addition, registration applications will be accepted and qualified persons may register with the registrar for the pre- cincts included in said district at said registrar's home and qualified persons may also contact the County Board of Elections at the office of said Board mentioned above, telephone number (919) 893 -4495. The last day for new registration of those not now regis- tered under Harnett County's permanent registration system is Monday, April 4, 1988. The last day on which registered voters who may have changed residence from one precinct to another may transfer registration is Monday, April 4, 1988. Any qualified voter of the County who is qualified to vote by absentee ballot under the provisions of the General Statutes of North Carolina, particularly Article 20 of Chapter 163, in a state -wide primary or general election is authorized to vote an absentee ballot in said special property tax referendum in accor- dance with said provisions of the General Statutes relating to absentee voting. Any qualified voter of the County who is qual- ified to vote by absentee ballot in said special property tax referendum may apply for an absentee ballot not earlier than fifty days prior to said special tax referendum and not later than 6:00 p.m., Monday, March 14, at the office of the County Board of Elections mentioned above. Qualified voters who are not certain whether they are regis- tered or qualified to vote by absentee ballot should contact the County Board of Elections at the office of said Board mentioned above. The registration books for elections In Harnett County will be open to inspection by any registered voter of the County during the normal business hours of the County Board of Elections on the days when the office of said Board is open, and such days are Challenge Days. The registrars, judges and other officers of elections appointed by the County Board of Elections will serve as the election officers for said referendum. The precincts and the voting places for said property tax referendum, subject to change as provided by law, are as follows: Grove Precinct Number 1 . Grove Precinct Number 2 Old Coats N. C. Town Hall Main Street Coats, N. C. Community Building Highway 55 Coats, N. C. Neill's Creek Precinct Buies Creek Fire Station Number 2 Buies Creek, N. C. 7536 Averasboro Precinct Number 5 Community Building Highway 301 North Dunn, N. C. Jackie C. Elmore, Chairman of Harnett County Board of Elections Vanessa Young, County Auditor and ex officio Clerk of the Board of Commissioners to Harnett County Section 4: The form of the paper ballots to be used for said referendum shall be substantially as follows: OFFICIAL BALLOT SPECIAL PROPERTY TAX REFERENDUM COATS -GROVE EMERGENCY RESCUE SERVICE DISTRICT, COUNTY OF HARNETT, • NORTH CAROLINA Instructions 1. To vote in favor of the Property Tax authorization, make a cross (X) mark in the square to the right of the word "YES ". 2. To vote against the property tax authoriza- tion, make a cross (X) mark in the square to the right of the word "NO ". 3. If you tear or deface or wrongly mark this ballot, return it and get another. "Shall Harnett County be authorized to levy annually a YES /--J property tax at an effective rate not in excess of eight cents NO (7 ($.OS) on the One Hundred Dollars ($100.00) value in the Coats -Grove Emergency Rescue Service District for the purpose of providing emergency ambulance and rescue squad service?" Facsimile Signature Chairman of County Board of Elections Section 5: The County Auditor and ex- officio Clerk is hereby directed to mail or deliver a certified copy of this resolution to the County Board of Elections of Harnett County within three days after the adoption hereof. Section 6: This resolution shall take effect upon its passage. Thereupon, upon motion of Commissioner Hudson seconded by Smith , the foregoing resolution entitled: "RESOLUTION CALLING FOR A SPECIAL PROPERTY .TAX REFERENDUM" was passed by the following vote. Ayes: 4 Noes: 0 The Chairman, - , declared the hearing closed at Secretary �ce/rMJ Clerk to the Bo 53) 1 1 DOCUMENT NO. 4. RESOLUTION AUTHORIZING EXECUTION OF CONTRACT AND AGREEMENT WITH CUMBERLAND COUNTY WHEREAS, the Harnett County Board of Commissioners, has examined the Contract and Agreement between Harnett County and Cumberland County, attached hereto as Exhibit "A "; and WHEREAS, the County desires to enter into said Contract and Agreement as provided) NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. Harnett County is hereby authorized to and shall enter into the Contract and Agreement attached hereto as Exhibit "A ". 2. Harnett County and its officers and agents are hereby directed to execute said Contract and Agreement. Duly adopted this the 7th day of March, 1988, upon motion made by Commissioner Smith , seconded by Commissioner Collins and passed by the following vote: Ayes: 4 Noes: 0 Absent: 1 Abstained: n ATTE HARNETT COUNTY BOARD OF COMMISSIONERS By:.S LJ.yd G. Stewbrt, Chairman Vanessa W. Young, erk • NORTH CAROLINA HARNETT COUNTY Exhibit "A" CONTRACT AND AGREEMENT THIS CONTRACT AND AGREEMENT is made and entered into this the day of , 1988 by and between HARNETT COUNTY, a body politic organized and existing under the laws of the State of North Carolina and CUMBERLAND COUNTY, a body politic organized and existing under the laws of the State of North Carolina. WITNESSETH; THAT WHEREAS, in the north central and north eastern sections of Cumberland County there is a need for public water services to enhance the continued development of the region; and WHEREAS, Harnett County, through its Department of Public Utilities, operates and manages a water production facility and several water distribution systems within its boundaries, including the system of the South Central Water and Sewer District of Harnett County, which has a common border with Cumberland County; and WHEREAS, individuals owning properties in the area of Cumberland County described have requested Harnett County to provide water service to said area; and WHEREAS, Harnett County desires to respond to the request of said individuals and serve public water to the area of Cumberland County described where appropriate and economically feasible; and WHEREAS, Cumberland County, desires to aid in the development of the county and further the opportunity of its citizens to obtain potable water; and WHEREAS, pursuant to the provisions of Chapter 160A, Article 20, Part 1, of the North Carolina General Statutes, Harnett County and Cumberland County now desire to enter into this contract and agreement to provide for water service to said area and to set forth certain understandings regarding the service of water to residents of Cumberland County by Harnett County; NOW THEREFORE, the parties agree, each with the other, as follows; 5313 1. PURPOSE. The purpose of this Contract and Agreement is to set forth the understandings and agreements of the parties hereto regarding the ownership and operation of a water supply and distribution system by Harnett County within the borders of Cumberland County. 2. SERVICE AUTHORIZED. Cumberland County hereby acknowledges and agrees that pursuant to N.C. Con. Stat. 5153A -274 et say., Harnett County may acquire, construct, establish, enlarge, improve, maintain, own and operate a water supply and distribution system within a designated area of Cumberland County as shown on Exhibit "A" attached, where the location of the same shall be appropriate and economically feasible, as may be determined by Harnett County. Harnett County shall operate its water supply and distribution system located in Cumberland County as a public enterprise as specified in Chapter 153A, Article 15, Part 1, of the North Carolina General Statutes.It is further acknowledged and agreed that pursuant to N.C. Gen. Stat. 5153A -275, Harnett County may by ordinance or resolution adopt adequate and reasonable rules and regulations to protect and regulate any water supply and distribution system owned by it located in Cumberland County. 3. FINANCING, OPERATION & MAINTENANCE. The financing for the acquisition, operation and maintenance of Harnett County owned water supply and distribution system located in Cumberland County shall be arranged by Harnett County. All revenues derived therefrom shall be the property of Harnett County. The operation and maintenance of the same shall be the responsibility of the employees and agents of the Harnett County Department of Public Utilities. 4. RATES, FEES AND CHARGES. It is understood that Harnett County will connect its water supply distribution system located in Cumberland County to the system of the South Central Water and Sewer District of Harnett County and shall purchase water distributed and sold in Cumberland County from the said South Central Water and Sewer District of Harnett County, all pursuant to a contract entered into between Harnett County and said District. The rates for water sold in Cumberland. County shall be the same as those in the South Central Water and Sewer District of Harnett County and in the event it shall become necessary for said District to levy a tax for the purpose of funding bonded indebtedness of the District, then in such event, the rates for water sold in Cumberland County shall be increased to such extent as will be equivalent to such needed property tax as may be levied. It is agreed that Harnett County may revise from time to time its schedule of rates for water sold in Cumberland County and may further establish and revise from time to time schedules of rent, fees, charges, )including connection fees) and penalties for the use of the services furnished by it. 5. NONOBLIGATORY COMMITMENT. It is understood that before contracting to acquire a water supply and distribution system in Cumberland County, Harnett County desired to enter into this contract and agreement. Harnett County agrees to use its best efforts to acquire the necessary water supply and distribution system to serve those individuals requesting service in Cumberland County. However, it is agreed that Harnett County shall have no obligation to serve water to any area of Cumberland County. 6. CONTRACT DURATION. The duration of this Contract and Agreement shall be perpetual, unless modified by mutual agreement of the parties. 7. AMENDMENTS. This Contract and Agreement may be modified or amended by mutual agreement of the parties. - 8. TERMINATION. This Contract and Agreement may be terminated by mutual agreement of the parties. - In the event this contract is terminated, any water supply and distribution system located in Cumberland .County which is owned by Harnett County shall remain the property of Harnett County. . 9. DUPLICATE CONTRACTS. This Contract and Agreement is executed in duplicate originals, one of which is retained by each party hereto. 53 DOCUMENT Nb. S. • IN WITNESS WHEREOF, Harnett County has caused this Contract and Agreement to be executed in its name by the Chairman of the Harnett County Board of Commissioners and attested by the Clerk to said Board, and sealed with the common seal of said Harnett County, all under authority granted by the Harnett County Board of Commissioners and Cumberland County has caused this Contract and Agreement to be executed in its name by the Chairman of the Cumberland County Board of Commlesioner■ and attested by the Clerk to said Board, and sealed with the common seal of said Cumberland County, all under authority granted by the Cumberland County Board of Commissioners. Executed by Harnett County, this the 7th day of March , 1908. By, HARNETT COUNTY BOARD OF COMMISSIONERS Vanessa N. Young, Clerk Executed by Cumberland C nty, this the _ day of 1988. Attest, CUMBERLAND COUNTY BOARD OF COMMISSIONERS By: RESOLUTION AUTHORIZING EXECUTION OF CONTRACT AND AGREEMENT WITH SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY WHEREAS, the Harnett County Board of Commissioners, has examined the Contract and Agreement between the County of Harnett (hereinafter "County ") and the South Central Water and Sewer District of Harnett County (hereinafter "District "), attached hereto as Exhibit "A "; and WHEREAS, the County desires to enter into said contract as provided; 4 NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. Harnett County is hereby authorized to and shall enter into the Contract and Agreement attached hereto as Exhibit "A ". 2. Harnett County and its officers and agents are hereby directed to execute said Contract and Agreement. Duly adopted this the 7th day of March, 1988, upon motion made by Commissioner Hudson , seconded' by Commissioner Collins and passed by the following vote: Ayes: 4 Noes: 0 Absent: 1 Abstained: 0 HARNETT COUNTY BOARD OF COMMISSIONERS By: ATT T. �/ (.vu -a-aaJ ) • �--U sn v, r� Vanessa W. Young, Clerk Llcfid G. Stewart, Chairman rb EXHIBIT A NORTH CAROLINA HARNETT COUNTY CONTRACT AND AGREEMENT THIS CONTRACT AND AGREEMENT is made and entered into this the day of March, 1988 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 and county water and sewer district organized and existing under the provisions of Article 6, Chapter 162A of the North Carolina General Statutes (hereinafter referred to as "District "). - WITNESSETH: THAT WHEREAS, County operates and manages a water production facility and several water distribution systems located within its boundaries and has established a County Department of Public Utilities to carry out such activities; and WHEREAS, the owners of certain tracts of real property, including residential subdivisions, located in the north central portion of Cumberland County have requested County to acquire, operate and manage the water distribution lines necessary to provide potable water to their properties; and WHEREAS, said owners have offered to install and construct the necessary water distribution system to serve their properties, and thereafter convey the same to County so that County may own, operate and manage the same; and WHEREAS, County finds that it would be in the best interest of the County to offer water services to that portion of Cumberland County wherein service is needed; and has obtained the assent of the governing body of Cumberland County so to do; and WHEREAS, District is currently in the process of constructing and installing a water distribution system which will include certain pipelines located within approximately one -half mile of the Harnett County Cumberland County line and currently has contracted for the purchase of a sufficient quantity of water to serve its potential customers, plus additional water users; and WHEREAS, County desires to acquire those water distribution, pipelines offered to it to be located within Cumberland County and , further desires to connect the same to the system of District; and WHEREAS, County is in need of a supply of treated potable water for its potential customers in Cumberland County and desires to purchase the came from District; and WHEREAS, the water distribution system of District as currently designed is not of sufficient size and capacity to deliver a reasonably constant pressure and amount of water to County as requested, but may be increased in size and capacity to meet the need of County; and WHEREAS, District has determined that it would be economically feasible and in the best interest of the citizens of the District to increase its capacity in the necessary. areas so as to deliver water to County as requested and thereby obtain proceeds from the sale of water to County; and WHEREAS, the parties hereto desire to set forth the terms and conditions of their agreements as hereinafter stated. NOW THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements contained herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, County and District agree as follows: A. District agrees: 1. Size and Capacity Increase. To cause the plans and specifications for its water distribution system- as currently drawn, to be amended so as to increase the size and capacity of its system along State Road No. 2045 to enable the delivery of water to County as herein specified to wit: to increase approximately 7,400 feet of six (6) inch water line to an eight (8) inch water line size and to extend (approximately) an additional 3,000 feet of eight (8) inch water line to the point of delivery described below and to install the necessary appurtenant items thereto to make the delivery of water complete. - ,District further agrees to cause the same to be constructed and installed. t7 Y1 2. quality and Quantity. To furnish the County at the point of delivery specified in Paragraph 3 below, 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 County not to exceed Two Million, Five Hundred Thousand (2,500,0001 gallons per month. 3. Point-of Delivery and Pressure. To furnish said water to County at a reasonable constant pressure calculated at forty (e0) pounds per square inch from an eight (8) inch main supply to be installed at a point located just North of the Lower Little River adjacent to Secondary Road No. 2045 within a water line and /or related appurtenance easement to be acquired by District. If a greater pressure that that normally available at the point of delivery is required by County, the costs of providing such greater pressure shall • be borne by County. Emergency failure of pressure or supply due to main supply line breaks, power failures, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the District from this provision for such reasonable period of time as may be necessary to restore service. 4. Billing Procedure. To furnish the County, not later than the 10th day of each month, with an itemized statement of the amount of water furnished the County during the preceding month. B. County agrees, 1. Payment and Payment Date. To pay District, not later than the 25th day of each month, all revenues derived from the sale of water to its customers located within Cumberland County. 2. Maintenance of Certain Lines. To maintain all water distribution pipelines located South of the connection point and along Secondary Road No. 2045 located within the South Central Water and Sewer District of Harnett County. C. It is further mutually agreed between District and County as follows, 1. Term of Contract. That this contract shall extend for a term of forty (601 years from the date of the initial delivery of any water as shown by the first bill submitted by the District to the County and, thereafter may be renewed or extended for such term, or terms, as may be agreed upon by the District and County. 2. Delivery of Water. That thirty (30) days prior to the estimated date of completion of construction of the water supply distribution system to be acquired by County, the County will notify the District in writing of the date for the initial delivery of water. 3. Water for Testing. When requested by the County, the District will make available to the contractor at the point of delivery, or other point reasonably close thereto, water sufficient for testing, flushing, and trench filling the system to be acquired by the County during construction, at a flat charge of one dollar and one cent (61.01) per one thousand (1000) gallons which will be paid by the contractor or, on his failure to pay, by the County. 4. Failure to Deliver. That the District will, at e11 times, operate and maintain its system in an efficient manner and will take such action as may be necessary to furnish the County with quantities of water required by the County. 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 District is otherwise diminished over an extended period of time, the supply of water to County's consumers shall be reduced or diminished in the same ratio or proportion as the supply to District's consumers is reduced or diminished. 5. Modification of Contract. That the provisions of this contract may be modified or altered by mutual agreement. 6. Future Water Transmission and Connection. In the event County elects to supply and sell water to any customers or other water distribution systems located outside of the boundaries. of the South Central Water and Sewer District and desire to do so by connecting to and transporting water through the water distribution system of District it is agreed that County may, at no cost, connect to and transport water through the water distribution system of District for the purpose of suppling and selling water to customers or other water distribution systems outside of the South Central Water and Sewer District, whether within the County of Harnett or otherwise. X642 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 District and County will collaborate in obtaining such permits, certificates, or the like, as may be required to comply therewith. 8. Successor to the County. That in the event of any occurrence rendering the County incapable of performing under this contract, any successor of the County, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the County hereunder. Accounting System. To the extent that the applicable administrative laws of the State of North Carolina may allow, County and District may agree in the future to implement any proper accounting system which will reduce paperwork or billing procedures which may result from the provisions of this Contract and Agreement. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this contract to be duly executed in duplicate counterparts, each of which shall' constitute an original. rr11�� Executed by the County this the 7 'lday of March, 1988. HARNETT COUNTY ATTEST$ 4 Vanessa W. Young, C er By /yd G G. . ' yd 'AS 'tewart, Cha rman Harnett •tunty Board of Commissioners Executed by the District this the _ day of , 1988. SOUTH CENTRAL WATER AND SEWER DIS RICT OF HARNETT COUNTY By: AT STs ��. Vanessa N. Young, Clerk G Stewart, Cnh_a�irman Harn -t County Board of Commissioners sitting as the governing body of the South Central Water and Sewer District of,Harnett County X43 DOCUMENT NO. 6. RESOLUTION AUTHORIZING EXECUTION OF CONTRACT AND AGREEMENT REGARDING WATER SERVICE IN CUMBERLAND COUNTY WHEREAS, the Harnett County Board of Commissioners, has examined the Contract and Agreement between the County of Harnett (hereinafter "County "), the South Central Water and Sewer District of Harnett County (hereinafter "District ") and C. Thomas Wood, J. P. Riddle, Jr. and C J Water Corporation, et ale, attached hereto as Exhibit "A "; and WHEREAS, the County desires to enter into said contract as provided; NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. Harnett County is hereby authorized to and shall enter into the Contract and Agreement attached hereto as Exhibit "A". 2. Harnett County and its officers and agents are hereby directed to execute said Contract and Agreement. Duly adopted this the 7th day of March, 1988, upon motion made by Commissioner Collins Hudson Ayes: , seconded by Commissioner and passed by the following vote: 4 Noes: 0 Absent: 1 Abstained: 0 ATTEST: CLiAJ By: HARNETT COUNTY BOARD OF COMMISSIONERS Vanessa W Yo NORTH CAROLINA HARNETT COUNTY gt lerk EXHIBIT A L d G. Stewart, Chairman CONTRACT AND AGREEMENT THIS CONTRACT AND AGREEMENT is made and entered into this the day of March, 1988 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 "), the SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, a municipal corporation, organized and existing under the laws of the State of North Carolina (hereinafter referred to as "District ") and C. THOMAS WOOD (hereinafter referred to as "Wood" and J. P. RIDDLE, JR., (hereinafter referred to as "Riddle ") (Wood and Riddle to be hereinafter collectively referred to as "Developers "), and C J WATER CORPORATION, a corporation organized and existing under the laws of the State of North Carolina with its principal office located in Cumberland County, North Carolina (hereinafter referred to as "Water Company ") and those individuals and corporations hereinafter named or designated as "Related Developers ". 544 WITNESSETH: WHEREAS, County operates and manages a water production facility and several water distribution systems located within its boundaries, and has established a Department of Public Utilities for the purpose of operating and managing the same; and WHEREAS, District, a municipal corporation and water and sewer district duly organized and existing pursuant to the provisions of Article.6, Chapter 162A of the North Carolina General Statutes, owns a water distribution system which is operated and managed by County; and WHEREAS, Developers and certain other individuals or entities hereinafter named are the owners of certain tracts of real property, including residential subdivisions, which are located in the north central portion of Cumberland County, North Carolina and in close proximity to the boundaries of the South Central Water & Sewer District of Harnett County and Harnett County; and WHEREAS, Developers and said other individuals or entities desire to obtain a potable public water supply for their respective properties and have requested County to acquire, operate and manage the water distribution lines necessary to provide such water to their properties; and WHEREAS, Water- Company has agreed to cause such water distribution lines as will be necessary to serve the respective properties of Developers and the said other individuals or entities to . be constructed and installed and have further agreed, that upon completion of said water distribution lines, to convey the same to County; and WHEREAS, County desires to accept the offer of Water Company and upon completion of the construction of the said water distribution system by Water Company, own, operate and manage public water facilities in Cumberland County; and WHEREAS, District has heretofore agreed with County, that it will allow the system constructed hereunder to connect to that of the District, and desires to enter into this agreement for the purpose, among others, of acknowledging consent to such connection; and WHEREAS, County pursuant to N.C. Gen. Stat. §153A -275, is authorized to acquire, maintain, own and operate water supply and distribution systems outside its borders; and • WHEREAS, District, pursuant to N.C. Gen. Stat. §162A -88, may contract and be contracted with and may sell water and collect fees and charges therefrom; and WHEREAS, County may further contract with private entities in order to carry out any public purpose that a county is authorized by law to engage in, as provided in N.C. Gen. Stat. §153A -449; and WHEREAS, in order to fully document the various provisions of their agreement, the parties hereto desire to set forth the terms and conditions of this contract and agreement as hereinafter stated. NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements contained herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: I. DEFINITIONS. The following definitions and /or explanation of terms shall be used for purpose of this contract and agreement. A. "Water distribution system" shall mean that network of water distribution transmission lines, mains and /or pipelines, and other related appurtenances and /or facilities, necessary for the transportation and delivery of potable water to be constructed by Developers pursuant to this Contract and Agreement, said system to 546 begin at the connection point (defined below) and run continuously in a southerly direction over and /or across the Lower Little River into Cumberland County and thence along State Road No. 1607 until the same intersects with State Road No. 16061 and run thence in a westerly direction along State Road No. 1606 until the same intersects State Road No. 1605, where said system shall end. The term "water distribution system" shall also include all necessary pipelines, facilities and /or related appurtenances, including complete meter service connections, necessary to serve potable water to each user existing (upon the date of the conveyance of the water distribution system to County as hereafter provided) within a current service area (defined below). B. "Connection point" shall mean that point where the water distribution system to be installed hereunder connects with the water distribution system of the South Central Water and Sewer District of Harnett County, said point to be located just North of the Lower Little River in Harnett County, North Carolina, adjacent to State Road No. 2045. C. "Cumberland County Service Area" shall mean that area of Cumberland County within which Harnett County has been authorized to provide water services, as provided in that certain Contract and Agreement entered into between Harnett County and Cumberland County dated March 7, 1988, to wit, that area described as follows: that area in Cumberland County, South of Harnett County - Cumberland County line which immediately abuts (on either side) McArthur Road, Johnson Farm Road and Elliot Bridge Road and all of the property in the area inside the boundaries of said roads and the Lower Little River. D. "Related Developers" shall mean a person or entity related to either Wood or Riddle and /or a Wood or Riddle related group, i.e., J. P. Riddle, Jr., individually, C. Thomas Wood, individually, any member of their family or any corporation controlled by J. P. Riddle, Jr., a member of his immediate family. or C. Thomas Wood or a member of his immediate family. Family members of C. Thomas Wood which fall within this category upon the execution of this Contract and Agreement are Clyde T. Wood, Jr. and Deborah Wood Steadman. Family members of J. P. Riddle, Jr. which fall within this category upon the execution of this Contract and Agreement are Joseph P. Riddle, III, Charlene R. Williams and Carolyn R. Armstrong. Corporations which fall within this category upon the execution of this Contract and Agreement are the March Development Corporation, Biltwell, Inc., Ring Model Homes Construction Company, Inc., Ring Model Homes Development Company, Inc. and E M Investments, Inc. B.B. Cameron, individually, owns fifty percent (50%) of some of the affected land with the Riddle Group and the said B. B. Cameron is therefore also an obligor and /or a beneficiary of this Contract and Agreement. E. 'Current Service Areale)" shall mean those subdivisions located adjacent to either State Road No. 1607 or State Road No. 1606 which are being served water by an approved public water system owned operated or controlled by either of the Developers and /or the Related Developers on the date of the conveyance of the water distribution system to County. Prr- 5461 F. "Future Service Area(s)" shall mean future subdivisions or extensions of existing subdivisions and /or other properties for which water service will be required developed by either of the Developers and /or the Related Developers which are located adjacent to State Road No. 1607 or State Road No. 1606. G. "Approved Water System" shall mean a potable water supply and distribution system which has received approval from all necessary federal, state and /or local agencies or governments. H. "Maximum Reimbursement Distribution" shall mean the amount of the normal and accepted costs of the water distribution system to be installed hereunder as paid by Water Company. The Amount so expended by Water Company shall be supplied to County, by formal, written itemized statement, at the time of the conveyance of the water distribution system to County. Water Company agrees to provide to County, as requested, sufficient evidence to document the written statement. II. CONSTRUCTION AND ,CONVEYANCE OF WATER DISTRIBUTION SYSTEM. Water Company agrees as follows: A. To cause to be installed and constructed at its cost the water distribution system hereinabove defined and to cause the same to be connected to the system of the District at the connection point, upon the following terms and conditions:. 1. Water Company shall cause the water distribution system to be constructed in accordance with the specifications of the County as provided through the County Department of Public Utilities, and Water Company shall permit representatives of County to inspect the construction and installation of the said water distribution system to verify the same. 2. Water Company shall cause plans and specifications for the described water distribution system to be completed in accordance with standard engineering practices and procedures by a qualified engineering firm acceptable to and approved by the County and Water Company shall provide copies of the plans and specifications, for approval, to the County and to its Department of Public Utilities. 3. Water Company shall provide to County and its Department of Public Utilities, prior to the commencement of the construction and. installation of said water distribution system, shop drawings of all materials to be used for construction. 4. Water Company shall obtain and acquire continuous and adequate easements and rights of way on private lands necessary to erect, construct, install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect said water distribution. system. 5. Water Company shall obtain and acquire permits, franchises, and authorizations or other instruments by whatsoever name designated, from public utilities and public bodies, commissions, or agencies such as are necessary to erect, construct, install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect said water distribution system upon, along or across streets, roads, highways and public utilities. 6. Water Company shall obtain approval for the construction and completion of the water distribution system from the necessary federal, state and /or local governments and agencies, prior to and /or at the time of completion. 7. Water Company shall cause the construction and installation of the water distribution system to be completed in accordance with standard engineering and contracting practices and procedures, by a qualified the County. contractor acceptable to and approved by 8. Water Company shall provide County and the County Department of Public Utilities three (3) entire sets of drawings of the completed water distribution system as constructed and as is conveyed to County as hereafter provided. B. That in the event that the construction and installation of the water distribution system is not completed as set forth herein, then County shall notify Water Company of such fact and in what ways the construction does not meet the terms of this agreement, and it shall be the duty of Water Company to thereafter correct such items or things as do not meet the terms hereof. C. That upon completion of the construction of the said water distribution system, and inspection, approval and acceptance thereof by County through its Department of Public Utilities, for and in consideration of County's agreements as hereinafter set forth, to convey by good and sufficient deed and /or other document of conveyance to County the entire water distribution system, together with all easements, rights of way, permits, franchises, authorizations or other instruments as described in paragraphs II(A)(4) and II(A)(5) above needed to operate and maintain the said water distribution system. III. WARRANTIES AND INDEMNIFICATION. It is further agreed as follows: A. Developers and /or Water Company, pursuant to either subparagraph (1) or (2) hereinbelow, shall warrant and guarantee for a period of one (1) year from the date of the conveyance of the water distribution system to County that the completed water distribution system will be free from all defects due to faulty materials or workmanship. Any corrections as may be necessary by reason of such defects, including the repairs of any damage to other parts of the system resulting from such defects, shall be made or caused to be made by County and all costs incurred in so doing, including materials and labor costs shall be borne by Developer and /or Water Company as provided below. The warranty and guarantee hereinabove provided shall be effected by Developers and /or Water Company by either: (1) Assigning to County at the time of the conveyance of the water distribution system to County all rights and interests of Water Company in and to a warranty or guarantee for said one (1) year period provided by the contractor, together with such rights or interests held by Water Company in a performance bond executed by said contractor and a surety, said items to be approved by County; or (2) Executing or causing to be executed by an individual or a corporation with a net worth in excess of Five Hundred Thousand ($500,000.00) a Guaranty, approved by County, assuming such duties, liabilities and obligations stated. B. Developers and /or Water Company upon the conveyance of the water distribution system to County, shall cause to be delivered' to County a paid liability insurance policy with minimum limits of $1,000,000.00 (in form and substance satisfactory to County) naming County as Insured which said policy shall insure the County, its successors and assigns, from and against all loss, costs, expenses,