03151988556
SPECIAL MEETING, NORTHWEST WATER $ SEWER DISTRICT, MARCH 15, 1988
WILLARD DEAN EX-
PLAINED LETTER:OF
CONDITIONS
RESOL. RE.:: DESIGN
OF SYSTEM
ADOPTION OF SEAL
The Harnett County Board of Commissioners sitting as the governing body of
Northwest Water and Sewer District met in special session on March 15,
1988,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; 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 2 p.m.
Rodney Tart, Director, Public Utilities, made introductory comments
concerning the purpose of the meeting.
Willard Dean, Farmers Home Administration, explained the conditions set
forth in the, Letter of Conditions and presented for consideration a
resolution regarding the Letter of Conditions and other related agree-
ments. Commissioner Collins made a motion to adopt the resolution.
Commissioner Shaw seconded the motion and it passed with a unanimous vote.
The resolution is copied in full at the end of these minutes dated March
15, 1988, as document No. 1.
John M. Phelps, II, Public Utilities Attorney, presented for consideration
a resolution authorizing design of a water distribution system for North-
west Water and Sewer District. Commissioner Collins made a motion to adopt
the resolution. Commissioner 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 15, 1988, as document No. 2.
John M. Phelps, II, Public Utilities Attorney, presented for consideration
a resolution adopting a common seal for the Northwest Water and Sewer
District of 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 is copied in full at the end of these
minutes dated March 15, 1988, as document No. 3.
LEGAL SERVICES AGREE. John M. Phelps, II, Public Utilities Attorney, presented for consideration
a resolution authorizing execution of legal services agreement. Commis-
sioner Collins 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 15, 1988, as
document No. 4.
ADJOURNMENT
DOCUMENT NO. 1.
There being no further business, the special meeting of March 15, 1988,
duly adjourned at 2:20 p.m.
BE IT RESOLVED:
(1) That the Board of Commissioners bf 1d0RTihUEST Wilful AND SEWER DISTRICT
accepts the conditions set forth in a Letter of Conditions dated :March 15, 1988,
and Form FmIIA 1942 -47, Loan Resolution:
(2) That the Board of Commissioners of NORTHWEST WATER AND SEWER DISTRICT approves as
shown on Form Fm)IA 442 -7, Operating Budget; the proposed budget:
(3) That the Chairman and Clerk be authorized to execute all forms necessary to
obtain a loan from FmIA, including, but not limited lo the following forms:
Form FmIIA 1942 -47 loan Resolution
Form FmuiA 442 -46 Letter of Intent
Form FmHA 442 -7 Operating Budget
Form FmIIA 400 -4 Assurance Agreement
Form FmlIA 400 -1 Equal Opportunity Agreement
Form FmHA 1940 -1 Request For Obligation of Funds
Form FmHA 1940 -31 Grant Agreement
(4) That if the interest rate charged by FmIIA should be Changed between this date
and the date of actual loan approval, the chairman and Clerk he authorized to
execute new forms reflecting the current interest rote and revise payments as
required by FmliA:
(5) That the Board of Commissioners elects to have the interest rate charged by FmIIA
to be the lower of the rate in effect at either the time of loon approval or
loan closing: -
(6) The proposed rate schedule for let' use is is Follows:
Residential - Minimum $12.00 (flat fee) for first 2000 gallons
p.lus$2.75 /1000 gallons
Commercial-Minimum $ 250.00(fiat Fee) for first aJ,rO.
p lus$2.75 /1000 gallons
(7) This resolution to become a part of the official minutes of the Board of
Commissioners meeting held on Maxh._15,, 1988. -
BY:
Chairman
1
557
Suite B, 4001 Carya Drive
Raleigh, NC 27610
March 4, 1988
Lloyd Stewart, Chariman
Northwest Water 8 Sewer District
P. 0. Box 758
Lillington, NC 27645
Dear Mr. Stewart:
This letter establishes conditions which must be understood
and agreed to by you before further consideration may be
given to your application.
This letter is not to be considered as loan approval or as a
representation as to the availability of funds. The docket
may be completed on the basis of a loan not to exceed
$1,604,000.00 and a development Grant not to exceed
$1,674,000.00.
If FmHA makes the loan, you may make a written reguest that
the Interest rate be the lower of the rate in effect at the
time of loan approval or the time of loan closing. If you
do not request the lower of the two interest rates, the
interest rate charged will be the rate in effect at the time
of loan approval. The loan will be considered approved on
the date a signed copy of Form FmHA 1940 -1, "Request for
Obligation of Funds," is mailed to you. If you want the
lower of the two rates, your written request should be
submitted to FmHA as soon as practical. In order to avoid
possible delays in loan closing, such a reguest should
ordinarily be submitted at least 30 calendar days before
loan closing.
Any changes In project cost, sources of funds, scope of
services or any other significant changes in the project or
applicant must be reported to and approved by FmHA by
written ammendment to this letter. Any changes not approved
by FmHA shall be cause for discontinuing processing of the
application.
Please complete and return the attached Form FmHA 442 -46, if
you desire that further consideration be given your
application.
If the conditions set forth in this letter are not met
within twelve months from the date hereof, FmHA reserves the
right to discontinue the processing of the application.
1. PAYMENT SCHEDULE
The Insured loan will be scheduled for repayment over a
period of forty (40) years. The first two
installments will be for interest only. Each
Installment will be due June 1 with the first
installment due the first Jurie 1 following the date of
loan closing or delivery of the bored.
2. INTERIM FINANCING
The District will obtain temporary construction financing in
accordance with FrnHA Instruction 1942.17(n)(2) ,Appendix A.
The District will contact the North Carolina Local
Government Commission and arrange to obtain Interim credit
through the sale of Bond Anticipation Notes.
3. SECURITY
Security for the loan will consist of a general
obligation water bond authorized and prepared in
accordance with FmHA Instruction 1942- A, Appendix C.
Farmers Horne Administration will negotiate the purchase of
the bond with the District and the North Carolina Local
Governrnent Commission. The Commission reserves the right
to require a public offering of the bond.
4. ORGANIZATION
The District roust provide the necessary certifications,
comments, and recommendations concerning its
organization and authority to issue bonds which should
Include the following.
a. Compliance with special laws and regulations.
b. State Pollution Control on Environmental
Protection Agency Standards.
c. Consistency with other development plans.
558
d. State agency regulating water rights.
e. National historic preservation.
f. Civil Rights Act of 1964
g. Architectural Barriers Act of 1968.
(Refer to FrnHA Instruction 1942.17(k), A
endix A)
ACCOUNTING, AUDITS, AND REPORTS
Accounting and auditing will be estabi ished and
maintained in accordance with the requirernents of
North Carolina General Statutes. The District is to
provide FmHA a copy of their Audit Contract. A copy
of the annual audit report will be provided FrnHA -in
accordance with North Carolina Instruction 1942.17(q),
Appendix A.
6. INSURANCE AND BONDING-
Insurance and.bonding roust be obtained as required by
North Carolina State Statues. The District will furnish
a certificate concerning the adequacy of insurance and
bonding.. -
The District will provide fidelity bond coverage for the
positions of officials entrusted with the receipt and
disbursement of its funds and the custody of valuable
property. The amount of the bored will be at least
equal to the rnaxirnurn amount of the money that the District
will have on hand at any time, exclusive of loan funds
deposited in a supervised bank account.
The public liability and property damage insurance
requirement should be discussed by the District and their
attorney and the amounts established accordingly.
Fire and extended coverage should be in an arnount equal
to the replacement value on all above ground structures,
Including District owned equipment and machinery housed
therein.
7. FINAL PLANS AND CONSTRUCTION CONTRACT DOCUMENTS '
Final plans roust conform essentially with the proJect
described in the Prelirninary Engineering Report on which
the project is funded. Should the project be changed
(pipe sizes, method of treatment, etc.) which will
result in increasing the project cost or operating
budget, the FrnHA roust be notified and a revised
Preliminary Engineering Report with the new budget roust
be submitted. Any charges not approved by FrnHA shall be
cause for discontinuing processing of the application.
The construction contract documents roust be completed in
accordance with FrnHA Instruction 1942 -A, Subsection
1942.18. The District and engineer roust consider all
materials suitable for the project. The engineer roust
specify all rnaterials normally used. Contracts roust be
awarded on the basis of the lowest hid acceptable
material. Concurrence by the FrnHA State Office Engineer
roust be obtained prior to negotiating with contractors
subsequent to opening bids. FmHA contracts and bid
documents should be used for projects Jointly funded
with other agencies.
8. LOAN RESOLUTION
The District must formally adopt Form 1942 -47, Loan
Resolution, at a proper rneeting of the governing body.
Adoption of this document should be made a part of the
official minutes of the Distr(ct. Forms FrnHA 400 -1, Equal
Opportunity Agreernent, and FrnHA 400 -4, Assurance
Agreernent, are to be formally adopted at the same
meeting.
9. OPERATING BUDGET AND WATER RATE SCHEDULE
A water systern operating budget roust be adopted by the
applicant after approval by Farrners Horne Administration.
A water rate schedule roust be adopted which will provide
sufficient revenue to meet the requirernents of the
Operating budget.
10. RULES AND REGULATIONS
Water systern Rules and Regulations roust be submitted to
Farrners Horne Administration for approval prior to loan
closing.
11. GRADUATION
The District will refinance the unpaid balance, in whole
or in part, of its debt upon the request of the Government
if at any time it should appear to the Government that
the District is able to refinance it's notes /bonds by
obtaining a loan for such purposes from responsible
cooperative or private sources at reasonable rates and
terrns.
12. CLOSING INSTRUCTIONS
The loan will be closed in accordance with instructions
issued by the Office of the General Counsel and
applicable FmHA and State procedure.
13. EXCESS FUNDS
If there Is a significant reduction in project cost as a
result of re- design or bids received, the District funding
needs will be reassessed before loan closing or start of
construction, whichever occurs first. Obligated loan or
grant funds not needed to complete the proposed project
will be deobligated. Grant funds are deobligated first.
14. DISTRICT CONTRIBUTION
The District is to deposit $40,000 In the construction
account prior to loan closing or the start of
construction, whichever occurs first. These funds are
considered to be expended first and are to be used with
other funds to complete the funding of the proposed
protect.
15. ORDER OF FUND EXPENDITURE
The District's contribution shall be considered to be
first funds expended. After providing for all authorized
costs, any remaining FmHA proJect funds will be
considered to be FrnHA grant funds and refunded to FrnHA.
If the amount of unused FrnHA project funds exceeds the
FrnHA grant, that part would be FmHA loan funds.
16. GRANT AGREEMENT
The District roust adopt Forrn FmHA 1942 -31, Association
Water and Sewer Systern Grant Agreement, at a proper
meeting of the governing body. Adoption of this
document should be made a part of the official
minutes of the District. Attached is a copy of Form
1942 -31, Association Water- or Sewer Systern Grant
Agreement for your review. You will be required to
execute a completed form at the time of grant closing.
17. "The District agrees that, in the event of deficiencies
In development, design, or construction of the project
or any part thereof, the District will take the required
administrative or legal actior, to secure financial
compensation from the engineer, architect, contractor
or attorney as appropriate for any necessary cost to
restore the project or defective part to a level of
service equal to that expected for normal design and /or
construction and legal services."
18. CLOSING INSTRUCTIONS
The loan will he closed in accordance with instructions
issued by the Office of the General Counsel and
applicable FrnHA and State procedures.
19. All applicable items set out in Form FmHA 442 -13,
Processing Checklist, Public Body, apply to this project
and become a part of the Letter of Conditions.
Sincerely,
IE E. MCLAMS
rict Director
Enclosures
560
RESOLUTION AUTHORIZING DESIGN
OF. WATER DISTRIBUTION SYSTEM
WHEREAS, the Harnett County Board of Commissioners created the
Northwest Water and Sewer District of Harnett County on March 23,
1987, and now sits as the governing body of said District; and
WHEREAS, a bond election was held in the District on November 3,
1987 at which time voters therein approved the issuance of general
obligation water bonds of the District; and
WHEREAS, since that date a sufficient number of customers have
agreed to purchase water from the District so as to enable the
District to proceed with the design of a water distribution system for
of the District; and
WHEREAS, The • Board of Commissioners of Harnett County, sitting as
the governing body of the Northwest Water and Sewer District now
desires to authorize the District's Engineers, Black & Veatch, Inc. to
proceed with the design of the water distribution system for the
project.
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) Black & Veatch, Inc., Consulting Engineers is hereby
authorized to proceed with and to perform such engineering and related
services as are necessary to complete the design, plans and
specifications for a water distribution system for the Northwest Water
and Sewer District of Harnett County.
(2) The District, its officers and agents are hereby directed to
take such actions and execute the necessary documents to implement the
terms of this Resolution.
Duly adopted this 15th day of March, 1988, upon motion made by
Commissioner C o\ \NHS seconded by Commissioner
Y1 v^ii'v5o■ and passed upon the following vote:
Ayes ,j ; 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
At t:
Vanessa W. Y lerk
By:
Llo
Stewart, Chairman
j DOCUMENT NO. 3.
I
RESOLUTION ADOPTING A COMMON SEAL
FOR THE
NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY
WHEREAS, the Northwest Water and Sewer District of Harnett County
is a duly organized and existing county water and sewer district,
having been created pursuant to Article 6, Chapter 162A of the North
Carolina General Statutes and by resolution adopted March 23, 1987 by
the Harnett County Board of Commissioners; and
WHEREAS, N.C. Gen. Stat. §162A -88, provides that the District may
have a common seal and alter and renew it at will; and
WHEREAS, the District now desires to adopt as its common seal the
design hereinafter set forth.
NOW, THEREFORE, BE IT RESOLVED, that the Harnett County Board of
Commissioners, sitting as the governing body of the Northwest Water
and Sewer District of Harnett County, does hereby adopt as the common
seal for said District the following:
A circular emblem with a circle drawn within
it, and the name Northwest Water and Sewer
District imprinted between the outer edge of the
emblem and the inner circle. Within the inner
circle appears the word "Seal" and the date 1987.
Duly adopted this the /SR.-day of March, 1988, upon motion made
by Commissioner Ccgiv.5 , seconded by
Commissioner Stiatu
and passed by the following
vote:
Ayes Jr Noes (7 Absent 0 Abstained 0
HARNETT COUNTY BOARD OF COMMISSIONERS
sitting as the governing body of the
Northwest Water and Sewer District of
Harnett County
AT ST:
Vanessa W./,YouE[g, Clerk
562
DOCUMENT NO. 4.
RESOLUTION AUTHORIZING 'EXECUTION OF
LEGAL SERVICES AGREEMENT
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 Legal
Services Agreement between the District and John M. Phelps, II,
Attorney, attached hereto as Exhibit "A "; and
WHEREAS, District desires to enter into said contract as
provided;
NOW, THEREFORE, BE IT RESOLVED, by the Harnett County Board of
Commissioners, sitting as the governing body of the 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 Legal Services Agreement
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 Legal
Services Agreement.
Duly adopted this the /01-day of March, 1988, upon motion made
by Commissioner CMAins , seconded by
dommissioner £h,,i4 and passed by the following
vote:
Ayes S Noes O Absent b Abstained D
HARNETT COUNTY BOARD OF COMMISSIONERS
sitting as the governing body of the
Northwest Water and Sewer District of
Harnett County
AT CST:
A..u.ao.J }J
By:
tril
L1G. Stewart, Chairman
Vanessa W.
EHXIBIT A
UNITED STATES DEPARTMENT OF AGRICULTURE
Farmers Home Administration
LEGAL SERVICES AGREEMENT
This agreement made this _ day of March, 1988 between the
Northwest Water and Sewer District of Harnett County hereinafter
referred to as "Owners" and John M. Phelps, II, Attorney at Law, of
Lillington, North Carolina, hereinafter referred to as "Attorney ":
WHEREAS, Owners have formed in Harnett County, North Carolina a
water and sewer district pursuant to the provisions of N.C. Gen. Stat.
§162A -86 et. seq. known as the Northwest Water and Sewer District of
Harnett County (hereinafter "District ".) ; - and
WHEREAS, the Attorney agrees to perform all legal services
necessary under the provisions of the applicable statutes and to
perform all other customary legal services necessary to the
organization, financing, construction and initial operation of a water
distribution system;
W I T N E S S E T H:
That for and in consideration of the mutual covenants and promises
between the parties hereto, it is hereby agreed:
SECTION A - LEGAL SERVICES
That the Attorney will perform such services as are necessary to
accomplish the above recited objectives including, but not limited to,
the following:
1. Preparation and filing of the necessary documents and
supervision and assistance in the taking of such other
actions as may be necessary or incidental to cause the
Owners to become duly organized and incorporated and to be
authorized to undertake the proposed system.
66,3
2. Furnish advice and assistance to the governing body of the
Northwest Water and Sewer District of Harnett County in
connection with (a) the notice for and conduct of meetings;
(b) the preparation of minutes of meetings; (c) the
preparation and enactment of such resolutions as may be
necessary in connection with the authorization, financing,
construction, and initial operation of the system; (d) the
preparation of such affidavits, publication notices,
ballots, reports, certifications, and other instruments and
advice as may be needed in the conduct of such bond
elections as may be necessary; (e) the preparation and
completion of such bonds or other obligations as may be
necessary to finance the system; (f) the completion and
execution of documents for obtaining a loan made or insured
or a grant made by the United States of America, acting
through the Farmers Home Administration, U.S. Department of
Agriculture; (g) entering into construction contracts; (h)
preparation and adoption of By -Laws, Rules and Regulations,
and rate schedules; (i) such other corporate action as may
be necessary in connection with the financing, construction,
and initial operation of the system.
3. Review of construction contracts, bid - letting procedure, and
surety and contractual bonds in connection therewith.
4. Preparation, negotiation, or review of contract with a
source of water supply when necessary.
5. Preparation, where necessary, and review of deeds, easements
and other rights -of -way documents, and other instruments for
sites for source of water supply, pumping stations,
treatment plants, and other facilities necessary to the
system and to provide continuous rights -of -way therefore;
rendering title opinions with reference thereto; and
providing for the recordation thereof.
6. Obtain necessary permits and certificates from county and
municipal bodies, from State regulatory agencies, and from
other public or private sources with respect to the approval
of the system, the construction and operation thereof,
pipeline crossings, and the like.
7. Cooperate with the engineer employed by Owners in connection
with preparation of tract sheets, easements, and other
necessary title documents, construction contracts, water
supply contracts, health permits, crossing permits, and
other instruments.
8. When applicable, secure assistance of and cooperate with
recognized bond counsel in the preparation of the documents
necessary for the financing aspects of the system. Where
bond counsel is retained, the Attorney will not be
responsible for the preparation and approval of those
documents pertaining to the issuance of the Owner's
obligations.
SECTION B - COMPENSATION
1. Owners will pay to the Attorney for professional services
rendered in accordance herewith, fees in the amount of
$45.00 per hour. Said fees will be paid to the
Attorney each month pursuant to regular statements presented
by the Attorney.
U elps, ,
Jon M. Phelps, �I, At orney
HARNETT COUNTY BOARD OF COMMISSIONERS
sitting as the governing body of the
NORTHWEST WATER AND SEWER DISTRICT OF
HARNETT COUNTY
By:
L1•yd Stewart, Chairman
Kit4 Sam. td
Kay 54 Blanchard, Recording Secretary
Loyd G. Stewart, Chairman
Vanessa W. Young, jerk ti.lthe Board
564
SPECIAL'MEETING, HARNETT COUNTY BOARD OF COMMISSIONERS, MARCH 15, 1988
DOCUMENT NO. 1.
The. Harnett County Board of Commissioners met in special session on
Tuesday, March 15, 1988, at 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; 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 2:20 p
Dallas H. Pope, County Manager, presented a resolution concerning job
training service delivery area for Harnett County. Commissioner Smith
made a motion to adopt the resolution. Commissioner 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 15, 1988, as document No. 1.
There being no further business, the Harnett County Board of Commissioners
special meeting of March 15, 1988, duly adjourned at 2:30 p.m.
HARNETT COUNTY,
NORTH CAROLINA
RESOLUTION
THAT, WHEREAS, Harnett County is currently being provided Job.
Training Partnership Act programs through Mid - Carolina Service Delivery
Area administered by Region "M" Council of Governments; and
WHEREAS, Harnett County does not consider the services currently
being provided through the Mid - Carolina Service Delivery Area to be in the
best interest of program requirements for Harnett County; and
WHEREAS, Harnett County desires to improve and enhance their Job
Training Partnership Act programs; and
WHEREAS, through an evaluation process it has been determined that
Harnett County should request services from Wake - Johnston Job Training
Consortium as related to Harnett County Job Training Partnership Act
needs.
NOW, THEREFORE, BE IT RESOLVED that the Harnett County Board of
Commissioners requests the Wake County Hoard of Commissioners approve the
merger of Harnett County into the Wake - Johnston Job Training Consortium
with membership on Wake- Johnston Private Industry Council as related to
Job Training Partnership Act programs.
Adopted this Fifteenth Day of March, Nineteen Hundred Eighty- Eight.
HARNETT COUNTY HOARD OF COMMISSIONERS
ATTEST:
Vanessa W. Young, Clerk
V
tewart, Chairman
d. leaaJa4J
Kay S,.j"Blanchard, Recording Secretary
Vanessa W. Young, C r to thl Board