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12191988 (2)101 WEST CENTRAL WATER AND SEWER DISTRICT MEETING, DECEMBER 19, 1988 The Harnett County Board of Commissioners sitting as the governing body of West Central Water and Sewer District of Harnett County met December 19, 1988, in the County Office Building, Lillington, North Carolina, with the following members present: Rudy Collins, Mack Reid Hudson, Mayo Smith, and Vice - Chairman Bill Shaw presiding. Chairman Lloyd G. Stewart was absent. Others present were: Dallas H. Pope, County Manager; W. Glenn Johnson, County Attorney; John M. Phelps, II, Public Utilities Attorney; Vanessa W. Young, Clerk to the Board; and Kay S. Blanchard, Recording Secretary. Vice Chairman Shaw called the meeting to order at 7 p.m. Commissioner Smith offered the invocation. John M. Phelps, II, Public Utilities Attorney, explained the purpose of the meeting. LETTER OF. CONDI- Mr. Willard Dean, Farmers Home Administration, presented and explained the TIONS RESOLUTION Letter of Conditions and related agreements regarding subsequent loan for Phase I Project of West Central Water and Sewer District. Commissioner Smith made a motion to approve a resolution regarding Letter of Conditions and related agreements. The resolution is copied in full at the end of these minutes dated December 19, 1988, as document No. 1. AMENDMENT TO John M. Phelps, II, Public Utilities Attorney, presented an Amendment to PROJECT ORDINANCE Project Ordinance for West Central Water and Sewer District. Commissioner Collins made a motion to approve the amendment. Commissioner Hudson seconded the motion and it passed with a unanimous vote. The amendment is copied in full at the end of these minutes dated December 19, 1988, as document No. 2. RESOLUTION John M. Phelps, II, Public Utilities Attorney, presented a Resolution AUTHORIZING ADD. Authorizing Additional Construction - Phase I Project Area. Commissioner CONSTRUCTION Hudson made a motion to approve 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 December 19, 1988, as document No. 3. ADJOURNMENT DOCUMENT NO. 1. There being no further business, the meeting of the Harnett County Board of Commissioners sitting as the governing body of West Central Water and Sewer District duly adjourned at 7:15 p.m. United States Department of Agriculture Llo d C. Stewart, Chairman Kay S. 4anchard, Recording Secretary Vanessa W. Young, Cle Farmers Home Administration 4001 Carya Drive, Suite B Raleigh, North Carolina 27610 December 1, 1988 Honorable Lloyd Stewart, Chairman South Central Water and Sewer District P. 0. Box 759 Lillington, NC 27546 Dear Mr Stewart: This letter establishes c and agreed to by you bef given to your application. This letter is not to be 0 representation as to the may be completed on the $951,000.00 and a deve $313,000.00. If FmHA make be that charged by FmHA at Board onditions which must be understood ore further consideration may be onsidered as loan approval or as a availability of funds. The docket basis of a loan not to exceed lopment grant not to exceed s the loan, the interest rate will the time of the loan approval. 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 reguest 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 reguest 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 costs, source 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 amendment 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 12 months from the date hereof, FmHA reserves the right to discontinue the processing of the application. REPAYMENT SCHEDULE The insured loan will be scheduled for repayment over a period not exceeding 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 June 1 following the date of loan closing or delivery of the bond. 2. INTERIM FINANCING The District will obtain temporary construction financing in accordance with FmHA. Instruction 10942.17(n)(2). 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. Farmers Home Administration will negotiate the purchase of the bond with the District and the North Carolina Local Government Commission. The Commission reserves the right to require a public offering of the bond. 4. ORGANIZATION The District must provide the necessary certification, 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. d. State agency regulating water rights. e. National historic preservation. f. Civil Rights Act of 1964. g. Architectural Barriers of 1968. (Refer to FmHA Instruction 1942.17<k). 5. ACCOUNTING, AUDITS, AND REPORTS Accounting and auditing will be established and maintained in accordance with the requirements 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 FmHA to accordance with North Carolina Instruction 1942.17(q) and the requirements of OMB Circular A -128. 6. INSURANCE AND BONDING Insurance and bonding must 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 bond will be at least equal to the maximum 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 with the District and their attorney and the amounts established accordingly. Fire and extended coverage should be in an amount 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 must conform essentially with the project described in the Preliminary 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 FmHA must be notified and a revised Preliminary Engineering Report with the new budget must be submitted. Any changes not approved by FmHA shall be cause for discontinuing processing of the application. The construction contract documents must be completed in accordance with FmHA Instruction 1942 —A, Subsection 1942.18. The District and engineer must consider all materials suitable for the project. The engineer must specify all materials normally used. Contracts must be awarded on the basis of the lowest bid acceptable material. Concurrence by the FmHA State Office Engineer must 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 meeting of the governing body. Adoption of this document should be made a part of the official minutes of the District. Forms FmHA 400 -1, Equal Opportunity Agreement, and FmHA 400 -4, Assurance Agreement, are to be formally adopted at the same meeting. 9. OPERATING BUDGET AND WATER RATE SCHEDULE A water system operating budget must be adopted by the applicant after approval by Farmers Home Administration. A water rate schedule must be adopted which wily provide sufficient revenue to meet the requirements of the operating budget. 10. RULES AND REGULATIONS Water system Rules and Regulations must be submitted to Farmers Home 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 notes /bonds by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms. 12. CLOSING INSTRUCTIONS The loan will be closed in aocordance with instructions issued by the Office of the General Counsel and applicable FmHA and State procedures. 13. EXCESS FUNDS If there is a significant reduction in project cost as a result of re— design or bids received, the District's 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. 104 14. WATER PURCHASE CONTRACT The District will obtain a Water Purchase Contract with Northeast Metropolitan Water District that will provide for sufficient quality and quantity of water to meet the needs of the district. The attached Form 442 -30, Water Purchase .Contract, may be used. The contract must be approved by FmHA prior to loan closing or starting construction, whichever occurs first. 15. ORDER OF FUND EXPENDITURE The District contribution shall be considered as the first funds expended. After providing for all authorized costs, any remaining FmHA project funds will be considered to be FmHA grant funds and refunded to FmHA. If the amount of unused FmHA. project funds exceeds the FmHA grant, that part would be FmHA loan funds. 16. GRANT AGREEMENT The District must adopt Form FmHA 1942 -31, Association Water and Sewer System 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 FmHA 1942- -31, Association Water or Sewer System 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 action to secure financial compensation from the engineer, 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. 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, '\ JACKIE E. MCLAM 71 District Director Enclosures United States Farmers Department of Home Agriculture Administration Honorable Lloyd Stewart, Chairman West Central Water & Sewer District P. 0. Box 759 Lillington, NC 27546 Dear Mr. Stewart: 4001 Carya Drive Suite B Raleigh, NC 27610 December 19, 1988 This letter revises the Letter of Conditions dated May 15, 1988. This Letter of Conditions was issued by FmHA and accepted by the Board of Commissioners on May 18, 1987. The revision is as follows: 2nd paragraph — Add "and a subsequent loan not to exceed $130,000.00." Sincerely, Q , JACKIE E. McLAMB District Director 105 UNITED STATES DEPARTMENT OF AGRICU1 :11.18 E Form FHA 442-46 FARMERS HOME ADMINISTRATION (Rev. 1-9-69) LIITER OF INTENT TO MEET CONDITIONS Dale December 19. 1988 TO: Farmers Home Administration United States Department of Agriculture 4001 CARYA DRIVE, SUITE R RALEIGH, NORTH CAROLINA 27610 (County Office Address) We have reviewed and understand the conditions set forth in your letter dated which revises the Letter of Conditions dated May 15, 1987. It is our intent to meet all of them not later than June 1, 1989. December 19, 1988 RASED ON Fm11A REGULATIONS, WEST CENTRAL WATER & SEWER DISTRICT OF IIARNETT COUNTY ELECTS TO HAVE THE INTEREST RATI: CHARGED WI FInliA To RE 'fill. IH.JF:R OF THE RATE IN EFFECT AT EITHER THE TIME OF LOAN APPROVAL. OR LOAN CLOT- TIN(:- USDA -FmHA Form FmHA 1940-1 ( Rey. 2-86) WEST CENTRAL WATER & SEWER DISTRICT (Name of Association) REQUEST FOR OBLIGATION OF FUNDS "I IN CAPITALIZED ELITE TYPE IN PACES MARKED 47 and appliw6M fess 18 that 4o. an P141 3 tabs 311 1. CASE NO. St D Co Borrower's I dd 31 01 41 3101 51 61 11 51 31 DI 7i 11 2. BORROWER NAME St Ti I G F1 n T1 R M I, 1 ti Ti F1 Ri 1 bl I Si E l W I El RI IDI II SIT1 RI IICITI I 1 9 F.1 IHIAIRINIFtT1Tl 111 (21 LOAN NO. 1 {k!lnpltee Offteff ) 3. NO. NAME FIELDS 31 H. 2. or 3 front Rem 2) 4. STATE NAME Olga ar N I Of RI T1 HI I C I AI RI 01 LI I i NI AI 1 5. COUNTY NAME ICIOLNINITtYi 1 1 (3) HIAI121N1 EIT1T1 1 GENERALBORROWER /LOAN INFORMATION 6. RACE /ETHNIC CLASSIFICATION 7. SEX CODE 1 Male 2 I- email) 1 = White 2 = Black 3 = Al /AN 4 - Hispanic 5 - A /PI 61 3 Family Unit 8. MARITAL STATUS 9. VETERAN CODE 10. CREDIT REPORT 1 = Married 3 = Unmarried 12 = Separated 12. TYPE OF PAYMENT 13. FEE INSPECTION 1 = Monthly 3 = Semiannual 1 Ves 2 = Annually 4 = Quarterly 2 1 = Ves 2 = No �1 1 - Ves 2 No 14. INTEREST CREDIT 21 - Yes 2= No 12 No (,ti 1'lI & MFH Only) 4 Organization Male Owned 5 Organization 1- omalo Owned 6 Pu Mir Body 11. DIRECT PAYMENT 1 County [Mice 3 No 312 Finance Office 15. COMMUNITY SIZE 1 10.000 or loss (MI it A1F11 2 Over 10.000 (.11dy) 16. TYPE OF ASSISTANCE 01 61 11 19. PERCENT OF LOAN GUARANTEED (Complete if Item 18 IEquals 1. 3 or 4) 21. TYPE OF SUBMISSION COMPLETE FOR 17. PURPOSE CODE 11 19A. TERM OF INTEREST RATE BUYDOWN OBLIGATION OF FUNDS I 1 1= 1 Year 2° 2 Years 1 -- Initial (Enter Code 2 if subsequent loan associaforl with Credit Sale or Assumption) 21 2 = Subsequent 24. AMOUNT OF IMMEDIATE 25. DATE OF APPROVAL $ ADVANCE MO DA YR 10..010 1 -1 I -1 1 I COMPLETE FOR SINGLE FAMILY HOUSING ONLY 18. TYPE OF FUNDS 1 Guaranteed no Interest Rate Bu ydown 2 Insured 3 Guaranteed with Interest Rata Buydown 4 - Guaranteed Interest Rate B rydown Only 20. TYPE OF ACTION 1 Obligation Only 2 Obligation /Check Request 1 3 Correction of Obligation 3 3 Year. 22. AMOUNT OF LOAN 1 1 131 O4 01 010.010 26. INTEREST RATE 01 4 71 Si 01 OI I %) 23. AMOUNT OF GRANT $ 1 ; 1 1 ; 1 10.0101 27. REPAYMENT TERMS 41 01 (,Nn. 0/ 11,0,5) 28. INCOME CATEGORY CODES 1 = Very Low I 2 - Low 31. R. E. INSURANCE 1 I .0101 35. TYPE OF UNIT 1 = Farm Tract 2 Non -Farm Tract 3 Moderate 4 Above Moderate 32. R. E. TAXES - 1st YEAR i 36. 1 .0101 DWELLING CODE 1 = Build I2 Purchase New 29. LOW INCOME LIMIT -MAX 1 7 1 1 10101 33. R. E. TAXES - 2nd YEAR i1 .0101 3 -- Purchase Old 4 Refinance 30. ADJUSTED FAMILY S INCOME 1 1 1 10;0101 34. NOTE INSTALLMENT $ INELIGIBLE 5 Repair 6 Purchase Old pair ;0101 7 Refinance Repair • COMPLETE FOR COMMUNITY PROGRAM AND CERTAIN MULTIPLE - FAMILY HOUSING LOANS 37. TYPE OF APPLICANT 38. PROFIT TYPE 1 = Individual 3 Corporation 5 - Assn. of Farmers 7 - Other 4I 2 = Partnership 4 Public Body 6 - Organ. of Farm Workers 11 1 Full Fiolit 2 Limited Piolit 3 Non Profit 106 MTh. to A 11 001 A1'PhO V A L •41. COMMENTS AND REQUIREMENTS OF CERTIFYING OFFICIAL Loan approval subject to the requirements of Letter of Conditions dated May 15, 1987 and revised December 19, 1988; ¥mHA instructions; Term Fm1IA 442 -13, Processing Checklist; and Loan Closing Instructions issued by the Office of the General Counsel. 42. I HEREBY CERTIFY that I am unable to obtain sufficient credit elsewhere to finance in) :actual needs at reasonable rates and terms, taking into consideration prevailing private rind cooperative rates and Idols in or near my community for loans for similar purposes and periods of time. I agree to use. subject to and in accordance with regulations appli- cable to the type of assistance indicated above, and request payment of the sum specified herein. I agree to report to FirdiA any material adverse changes, financial or otherwise, than occur prior to loan closing. I ccllily that no part of said sum has been received. I have reviewed the loan approval requirements and comments associated with this loan request and agree to comply with these provisions. (For SFH & FP loans at eligible terms only) If this loan is approved- I elect the interest rate to be charged on my Frill IA loan to be the lower of the interest rate in effect at the dine of loan approval ur loan closing. IF 1 check "NO'', the interest rate charged on my loan will be the rate specified in Item 26 of This form YES NO WARNING: Section 1001 of Title 18, United States Code provides: "Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up .. , a material fact or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entity, shall be fined not more than $10,000 or imprisoned not more than 5 years, or both.' Date December 19 19 RR Wrsr r`cut r_ad . }t- e -> -,i- e-47- e-r--- I3 1St fi.ct (Signature of Applicant) Date ,19 BY• ATTEST: clerk 43. I HEREBY CERTIFY Mat all of the committee and administrative determinations and certifications required by Farmers Home Administration regulations prerequisite to providing assistance of the type indicated above have been made and that evidence thereof is in the docket, and that all requirements of pertinent regulations have been complied with. I hereby approve the above - described assistance in the amount set forth above, and by This document. subject to the availability of funds, the Government agrees to advance such amount to the applicant for the purposes of and subject to conditions prescribed by Farmers Home Administration regulations applicable to this type of assistance. (Signature of ('n -.1 ppli<ant) Chairman Date Approved' Title (.Signature of Approving Official) 44. TO THE APPLICANT: As of this date , this is notice that your application for the above financial assistance from the Farmers 1lotne Administration has been approved, as indicated above, subject to- avail- ability of funds and other conditions required by the Farmers Home Administration. If you have any questions contact the County Supervisor. USDA -FmHA Form Fntl IA 194247 (Rev. 8 -87) Position 5 LOAN RESOLUTION (Public Bodies) FInHA 1940 -1 (REVERSE) I-ORM APPROVED OMB NO. 0575 -0015 A RESOLUTION OF THE Board of Commissioners OF THE West Central Water & Sewer District of Harnett County AUTHORIZING AND PROVIDING FOR TIIE INCURRENCE OF INDEBTEDNESS FOR TIIE I'URPOSE. OF PROVIDING A PORTION OF THE COST OF ACQUIRING. CONSTRUCTING. ENLARGING. INII'ROVING, AND /OR EXTENDING ITS Water Distribution FACILITY TO SERVE AN AREA LAWFULLY WITIIIN ITS JURISDICTION TO SERVE. WHEREAS, it is necessary for the West Central Water & Sewer District (1 §rhlic /Jodi) (herein after called association) to raise a portion of the cost of such undertaking by issuance of Os bonds in the principal amount of One Hundred Thirty Thousand Dollars ($130 000.00) pursuant to the provisions of Local Government Bond Act (GS. 159 -43 (ET Seq.) WHEREAS, the association intends to obtain assistance from the Farmers Home Administration, United States Department of Agricul- ture, (herein called the Government) acting under the provisions of the Consolidatet! Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and supervision of such undertaking and to purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such bonds is found by the association: NOW THEREFORE, in consideration of the premises the association hereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or iesulutiun for the issuance of its bonds and coma such items and in such fortes are required by STATE statutes and as are agreeable and acceptable to the Government. 2. To refinance the unpaid balance, hi whole or in part, of its ponds upon the request of the Government if at any time it shall appear to the Government that the association is able to refinance its bonds by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for mans for similar purposes and periods of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (7 U.S.('. 1983(e)). 3. To provide for, execute, and comply with Form FiniIA 400 -4. "Assurance Agreement ": and Form FiiilIA 400 -1, "Equal Opportunity Agreement ", including an "Equal Opportunity Clause ", which clause is to he incorporated in, or attached as a rider to, each construction contract and subcontract involving in excess of 510.000. 4. To indemnify the Government for any payments made or losses suffered by the Government on behalf of the association. Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal per- missible source. 5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any cov- evant or agreement contained herein or in the instrument incident to making or insuring the loan. the Government at its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and pay- able, (b) for the account of the association (payable from the source of funds pledged to pay the bonds or any other legally permissible source) incur and pay reasonable expenses for repair, maintenance. and operation of the facility and such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facility, repair, maintain, and operate or rent it. Default under the provisions of this Resolution or any instrument incident to the making or insuring of the loan may be construed by Ile Government to constitute default under any other instrument held by the Government and executed or assumed by the Association, and default under any such instrument may be construed by the Government to constitute default hereunder. 6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, not permit others to do so, without the prior written consent of the Government. 7. Not to borrow any money from any source, enter into any contract or agreement. or incur any other liabilities in con- nection with shaking enlargements, improvements or extensions to, or for any other purpose in connection with the facility (exclusive of normal maintenance) without the prior written consent of the Government if such undertaking would involve the source of funds pledged to pay the bonds. 8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Government. Funds may be deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed by the full faith and credit of the United States. Any income from these accounts will he considered as revenues of the system. 9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility in good condition. 10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and the establishment of adequate reserves. Revenue accumulated over and above that needed to pay operating and mainte- nance, debt service and reserves may only be retained or used to slake prepayments on the loan. Revenue can not be used to pay any expenses which are not directly incurred by the facility financed by F1111IA. No free service or use of the facil- ity will be permitted. 11. To acquire and maintain such insurance coverage including fidelity hands as may be required by the Government. 12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to provide for required audit thereof in such a manner as may he required by the Government, to provide the Government without its request, a 'Ally of each such audit, and to make and forward to Iltc Government such additional information and reports as ft mil' 'tom tittle to time r re. 13. To provide the Government al all reasonable limes access to all hooks and records relating to the facility and access to the properly of the system so Ilia! the Govcnuomt may ascguatu that the association is complying with the provisions hereof and of the instruments incidcnl to the making or insuring of the loam. 14. In cases where the Gover uncnl requires that a reserve account he established and maintained. when necessary. disburse- ments from the reserve account may be used lot payments dug on the bond if sufficient funds arc not available in the general or debt service accounts. With the prior written approval of the Government. funds may he withdrawn for: (a) Paying the cost of repairing or replacing any damage to the facility which may have been caused by catastrophe. (b) Repairing or replacing short -lived assets. (c) Making extensions or improvements to the facility. Any time funds are disbursed from the reserve account, additional deposits will be requited 1111111 the reserve account has reached the required funded level. 15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain FntHA's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which are feasible and legal, such person shall have a direct right of action against the association or public hudy. 16. In the case of a grant in the sum not lo exceed S NA ,the association hereby accepts the grant under the terms as offered by the Government and that the NA and NA of the association arc brush\ :uuhori /ed and emp,nccted lu take all :action necessry or appropriate in the execution of all written instruments as 111115 he acquired in regard m or as evidence of such grant and the association hereby resolves to operae the ladliiv under the Icons ,u rusted 111 sand !grant aeaccmenits). The provisions hereof and the provisions of all inslrhnncnIS incident to the inakiug ur the insuring of the loan, unless otherwise specifically provided by the terms of such instrument. shall be binding upon she :usuciatiun is lung as The hands are held or insured by the Goverhnnent. 'fie provisions of sections 6 Through 15 hereof nets he provided) for in more specific derail in the bond resolution or ordinance: to the extent that the provisions contained in such hood resolution or nnlivance should be found to be inconsistent with the provisions hereof. these provisions shall hr couslnred as controlling as between the association and the Government. The vote was: N WITNESS WHEREOF the Peas Nav ` Al CHI Board of Commissioners West Central Water and Sewer District of the has duly adopted Ili: Itcsolution and caused o be executed by the officers below in duplicate on this 19th fah „I- December 1988 West Central Water & Sewer District SEAL) Ily \nest: Tills Chairman 108 Attest: Title Chairman Tide Chu i unzip CERTIFICATION I, the undersigned. as Clerk hereby certify that the Board of Commissioners „ft111 West Central Water & Sewwer District members or whom of such Association is composed of constituting a quorum, were present at a meeting (hereof duly called and held on the 19th day of December 19 88 . that the foregoing resolution was adopted at such meeting by the vote shown above;'and that said resolution has not been rescinded or amended in any way. Dated. this 79th day of Form FmHA 400 -1 (Rev. 7-1 9-83) This agreement, dated December f Up,t.�uQC✓ 88 Title Clerk UNITED STATES DEPARTMENT OF AGRICULTURE FARMERS HOME ADMINISTRATION EQUAL OPPORTUNITY AGREEMENT December 19, 1988 *V 3 GPO 1987- 195- 138/79033 FORM APPROVED OMB No. 0575 -0018 APPROVAL EXPIRES 4/84 between West Central Water & Sewer District .(herein called "Recipient" whether one or more) and the Farmers Home Administration, United States Department of Agriculture, pursuant to the rules and regulations of the Secretary of Labor (herein called the `Secretary') issued under the authority of Executive Order 11246, as amended, witnesseth: In consideration of financial assistance (whether by a loan, grant, loan guaranty, or other form of financial assistance) made or to be made by the Farmers Home Administration to Recipient, Recipient hereby agrees, if the cash cost of construction work performed by Recipient or a construction contract financed with such financial assistance exceeds $10,000 -- unless exempted by rules, regulations or orders of the Secretary of Labor issued persuant to Section 204 of Executive Order 11246 of September 24, 1965. 1. To incorporate or cause to be incorporated into any contract for construction work, or modification thereof, subject to the relevant rules, regulations, and orders of the Secretary or of any prior authority that remain in effect, which is paid for in whole or in part with the aid of such financial assistance, the following "Equal Opportunity Clause ": During the performance of this contract, the contractor agrees as follows: - (a) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited, to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; fates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Farmers Home Administration setting forth the provisions of this nondiscrimination clause. (b) The contractor will, in all solicitations o, advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. (c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the. Farmers Home Administration, advising the said labor union or workers' representative of the contractor's commitments under this agreement as required pursuant to section 202(3)— of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (d) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, , and of all rules, regulations and relevant orders of the Secretary of Labor and of any prior authority which remain in effect. (e) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, rules, regulations, and orders, or pursuant thereto, and will permit access to his books, records, and accounts by the Farmers Home Administration, Office of Equal Opportunity, U. S. Department of Agriculture, and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (f) In the event of the contractor's noncompliance with the Equal Opportunity (Federally Assisted Construction) clause or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government Contracts or Federally Assisted construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, or as provided by Law. (g) The contractor will include the provisions of this Equal Opportunity (Federally Assisted Construction) clause in every subcontract or purchase order, unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each such subcontractor or vendor. The contractor will take such actiori with respect to any subcontract or purchase order as-the Farmers Home Administration may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided however that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Farmers Home Administration, the contractor may request the United States to enter into such litigation to protect the interest of the United States. Position 6 FmHA 400 -1 (Rev. 7- 19-83) 2. To be bound by the provisions of the Equal Opportunity Clause in construction work performed by Recipient and paid for in whole or in part with the aid of such financial assistance. 3. To notify all prospective contractors tortfile the required `Compliance Statement', Form FHA 400 -6, with their bids. 4. Form AD -425, Instructions to Contractors, will accompany the notice of award of the contract. Bid conditions for all nonexempt Federal and Federally as,int -A construction contracts require inclusion of the appropriate . "Hometown" or "Imposed" plan affirmative action and equal employment opportunity requirements. All bidders must comply with the bid conditions contained in the invitation to be ,considered responsible bidders and hence eligible for the award. 5. To assist and cooperate actively with the Farmers Home Administration and the Secretary in obtaining the compliance of contractors and subcontractors with the provisions of the Equal Opportunity Clause and the said rules, regulations, anb orders, to obtain and furnish to the Farmers Horne Administration and the Secretary, Form AD -560, Certification of Nonsegregated Facilities, to submit the Monthly Employment Utilization Report, Font( CC -257, as.required and Welt other information as they may require the supervision of such compliance, and to otherwise assist the Farmers Home Administra- tion in the discharge of its primary responsibility for securing compliance. 6. To refrain from entering into any contract, or extension or other modification of a contract, subject to such Executive Order with a contractor debarred from Government contracts or federally assisted construction contracts pursuant to Part II, Subpart D, of such Executive Order or to prior authority; and to carry out such sanctions and penalties for violation of the provisions of the Equal Opportunity Clause as may be imposed upon contractors and subcontractors by the Farmers Home Administration or the Secretary pursuant to such Subpart D. 7. That if Recipient fails or refuses to comply with these undertakings, the Fanners Home Administration may take any or all of the following actions: (a) cancel, terminate, or suspend said financial assistance in whole or in part;(b) refrain from extending any further assistance under the program involved until satisfactory assurance of future compliance has been received from Recipient; and (c) refer the case to the Office of Equal Opportunity, U. S. Department of Agriculture for appropriate action. Witness the due execution hereof by Recipient on this, the date first above written. USDA -FmHA Form FmHA 4004 (Rev. 8-29-79) The Position 3 ASSURANCE AGREEMENT (Under Title VI, Civil Rights Act of 1964) West Central Watec & SgweL.3.2 15tr .i- et._.ot...tlatn_ett...County (aura nj incipient) P. 0. Box 759, Lillington, NC 27546 (address) ( "Recipient" herein) hereby assures the U. S. Department of Agriculture that Recipient is in compliance with and will continue to comply with Title VI of the Civil Rights Act of 1964 (42 USC 2000d et. seq.), 7 CFR Part 15, and Fanners Home Administration regulations promulgated thereunder, 7 C.F.R. §1901.202. In accordance with that Act and the regulations referred to above, Recipient agrees that in connection with any program or activity for which Recipient receives Federal financial assistance (as such term is defined in 7 C.F.R. 414.2) no person in the United States shall. on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits-of, or be otherwise subjected to discrimination. 1. Recipient agrees that any transfer of any aided facility, other than personal property, by sale, lease or other conveyance of contract, shall be, and shall be made expressly, subject to the obligations of this agreement and transferee's assumption thereof. 2. Recipient shall: (a) Keep such records and submit to the Government such timely, complete, and accurate information as the Govemment may determine to be necessary to ascertain our /my compliance with this agreement and the regulations. (b) Permit access by authorized employees of the Farmers Home Administration or the U.S. Department of Agriculture during normal business hours to such books, records, accounts and other sources of information and its facilities as may be pertinent to ascertaining such compliance. (c) Make available to users, participants, beneficiaries and other interested persuus such information regarding the provisions of this agreement and the regulations, and in such manner as the Farmers Home Administration or the U.S. Department of Agriculture finds necessary to inform such persons of the protection assured them against discrimination. 3. The obligations of this agreement shall continue: (a) As to any real property, including any structure, acquired or improved with the aid of the Federal financial assistance, so long as such real property is used for the purpose for which the Federal financial assistance is made or for another purpose which affords similar services or benefits, or for as long as the Recipient retains ownership or possession of the property, whichever is longer. (b) As to any personal property acquired or improved with the aid of the Federal financial assistance, so long as Recipient retains ownership or possession of the property. (c) As to any other aided facility or activity, until the last advance of funds under the loan or grant has been nude. 4. Upon any breach or violation of this agreement the Government may, at its option: (a) Terminate or refuse to render or continue financial assistance for the aid of the service or activity. (b) Enforce this agreement by suit for specific performance or by any other available the United States or the State in which the breach or violation occurs. property, facility, project, remedy under the laws of Rights and remedies provided for under this agreement shall be cumulative. In witness whereof, West Central Water & Sewer District on this (name of recipienO date has caused this agreement to be executed by its duly authorized officers and its seal affixed hereto, or, if a natural person, has hereunto executed this agreement. (S E A L) Attest: rtetlt Title BY: West Central Water & Sewer Distrz_Ct Recipient December 19, 1988 Chairman Date Title Chairman xiknotwxst • 1, _'i • kE Ir T. USDA -FHA 442 -14 (Rev. ] 1- 15 -73) ASSOCIATION PROJECT FUND ANALYSIS ay� r CASE NUMBER 6 • S'c -t'S.7 , TYPE OF LOAN AND /OR GRANT: £. ST CO BORROWER NO. IX I ) FINANCE USE ONLY 38 043 0561530710 Domestic water System n� 6• _ Cooperatives LN CR FY . Sc f Scarce of Funds: n 2- Waste Disposal Systems 7• _ inc. n Tribes or Tribal Corporations V. -1- Insured I]2- Direct — , i ypeof Submission: _A Sewage Collection $- RCBD Id A DP i i;' 1- Initial Ell 2 -Su6se 4 q uent n 9• . Watershed (PL -566) I`. Type of Assistance: _ B. Sewage Treatment i •? -Loon n 1• Q.F Iood Prevention (PL -533 Land Shifted: — --3 Acres in Project Grans __C Solid Waste Disposal I I1 )• _Community Facilities ' Recreational Visitor Day Capacity - t" - -can &Grant P ':nization: D Storm Drainage n1Z- Grants (PL -92 -319) Annual r_, j— '- =� _ 2- Non-TE 13_B &I (Insured) ,Number of users directly benefiting from this c lion: � ? plication: I 13- Recreation 2 -87 ls68 12 { i ante L Q_ Grazing Residential Other ca.- and /or Grant Approved: I15j_ Ire -tion, Drainage, or Other Soil pj Conservation Measures I -'i .rsE OF APPLICANT: ADDRESS: ' k'?St Central Water & Sewer District t NAME OF COUNTY: P.O. Box 759, Lillington, NC 27546 Harnett ITEM FUND ANA LYSI$ - (ALL AMOUNTS IN HUNDREDS OF DOLLARS) CASH CONTRIBUTION OTHER FHA GRANT FHA LOAN t t't. Development I° I 0 I° 1 0 i "' '�.�a- -;.� p TOTALS 5 2 2 O I °I o o I_.o i ;,7 :61' oro°nn ' ='. Land and Rights 1 0 1 ° 10 1 0 0 1 0 Mane a'•_�-a`�u I I I I . I p l ° .. 1 0 1 0 0 M ! :gal Services ! I / .. I 0 0° 1° I° o o �� i o i o D 1 0 i r .. rchitectural Eng. I 1 I 1 1 0 • l 1 and Plannin Service 1 0 1 0 I , I I I e 4 0 0 I 7 8 O l o l ° U I° 11 D I o 1 0 1 0 i• 0 I 0 1 0 l ° 0 1 0 �� o I° I° 111111 10 1 0 1b. Equipment 1 0 1 ° I I ) 1 , 1° 1 0 f °1 111 ° 1 0 Contingencies I I ! I I D 1 0 r. X 0 1 0 1 0 1 0 I 01 0 RR, I° i ° I I I 01 0 S. y_pdinancing 0 0 1 D 0 1 1. �� 1 010 B. Initial O &M U 0 j::- 1 I 1 .. i O' 0 I 01 0 O. ItiaResee 1 1 r °1 ° �. ° 1 ° .. I 0I 0 • �S, TOTAL • 1 )_ 5 0 0 o I ° 6 0 0 0 1 ° j 0 r o f °° i o FHA 442 -11 May 1 I -1 cnq) _ .. 1 STS.. .. . ..z n 1 CO 0 0 2 1 C-13 C -1 0 2 2 m 0 m n 0 C 2 1 0 0 D O 2 v 0 m m n -4 m C 2 2 r N PROJF(' F l ('ASI I I i ow REV c. Schedule 2 Line 22 front Schedule1 income (loss) Add 1437-88 19 88 -89 19 n(:�d 1X+11 s' +&4'ull first Year K1t1. (V)'Qi <1.)"%!i9 {la 2.16 1 25,00c 89»Q 282,0 Items in Operations not Requiring Cash: I. Depreciation (line 16 Schedule 1) 2. Others: Cash Provided From: 8o• DOd+ v�M.aO 1. Proceeds from FmHA loan /grant 2. Proceeds from others 3. Increase (Decrease) in Accounts Payable, Accruals and other Current Liabilities 4. Decrease (Increase) in Accounts Receivable, Inventories and Other Cpwent Assets (Exclude Cash) 50,000 5. Other: Sale mt-n 620,000 )30000 ?• 6 = State Grant 300,000 300„000 Total all A, B and C Items Less: Cash Expended for: 1 _O2_ (1 (1(x1 l t /7 S// 12 766 450 000 44 000 ,y , 1. All Construction, Equipment and New Capital Items (loan and Grant funds) 2. Replacement and Additions to Existing Property, Plant and Equipment 3. Principal Payment FtnHA Loan 4. Principal Payment Other Loans 5. Other flepay Ran 2s'Od' ' 66'0 2500 4382 AOO__Oaa .m -67(}000 6. Add Total E 1 through 5 d 450,000 '7509 R0'240 6882 0 1,76y 0 00 570 -000 20240 Beginning Cash Balances . Ending Cash Balances (Total of D Minus E 6 Plus F) :m G Cash Balances Composed of: $ 570,00 $ 702461 $ ts3DZ42, .576 124 $ $ S S $ Construction Account Revenue Account Debt Payment Account O &M Account Reserve Account Funded Depreciation Account Others: AMc e lc/YS /04-+ 531 000 39 000 9fl 74(1 10.24.2— 26, 124 0 COO S 570,00( -,;.!1 - Agrees with Item G S ?0e2L_ s $ ,3O 2, ., $ 16,124 cr ii FrnHA 432 - itev. 8- 12 -76) , )PP.RATING I3UI) jT J7' O45 AT > ry 1r �i� Scnrdulc„ 1 '7' - _•Nw.we....r •3InC • West Central Water & Sewer District AthI R'S5 P. 0. Box 579, Lillington .pplicant Fiscal Year ,.ln 7 - 1 To 6 :- 30 County Harnett I State (1 nrludi,Sr711) Goat. North Carolina 27546 PI ILATING INCOME 19 87 — 88 19 88 — 89 19 Infra r'Arle r. I: st Full 'Fri r (1) (2) 15,850 l3) (5) 126,816 1,500 Water Sales Rgpil Hey; ( 2,.5t6 6 Tap On's Miscellaneous Less: Allowances and Deductions ;L eatA d ns1 hrh Income ) PiERATING EXPENSES ( ) ( ) ( ) 15.850 TL`' - e` t 128 316 7.260 2,000 1,000 Re.an-tt 22,000 Zud'04 2,000 a d' .Ol 3,000 2 °'a>'a <a 2 000 Salaries / Travel Insurance ( -. Office Expense L Audit 700 !..Maint. & Repairs 1,650 1 flSte 5,000 6 000 .3. Chem /supplies /misc. 2,000 a >>r a 515 4. Bulk Water Purchase 4,000 8,000 1 601 32,000 53 + "&5y' 43,550 >. interest (FmHA) .r. Depreciation :- 'Dotal Operating Expense (Add Lines 8 through 16) ,. NET OPEaATINGINCOME (LOSS) (Line 7 less 17) i)NOPERA VING INCOME 8,250 !;42i472,0; 25,000 34,860 1 „7;007..i.: 140 550 /19,01(> Ic v739� K12 234> l 1. Total Nonoperating Income (Add 19 and 20) 2. NET INCOME (LOSS) (Add Lines 18 and 21) (transfer to line A Schedule - - 419010> <12,234> Attest: Budget and Projected Cash Flow Approved by Governing Jody 47(3-1r P./L12 -t Secretary Date 5 -18 -87 Appropriate Official Date Resolution No: BE IT RESOLVED: That the Board of Commissioners of Net Central Water & Sewer District accepts the conditions set forth in a Letter of Conditions dated December 19, 1988 and Form FmHA 1942 -47, Loan Resolution: That the Board of Commissioners approves as shown on Form FmHA 442 -7, Operating Budget, the revised budget: That the Chairman and Clerk be authorized to execute all forms necessary to obtain a loan from FmNA, including, but not limited to the following forms: Form FmHA 1942 -47 Loan Resolution Form FmHA 442 -46 Letter of Intent Form FmHA 442 -7 Operating Rudget Form FmHA 400 -4 Assurance Agreement Form FmHA 400 -1 Equal Opportunity Agreement Form FmHA 1940 -1 Request for Obligation of Funds That if the interest rate charged by FmHA should be changed between this date and the date of actual loan approval, the Chairman and Clerk be authorized to execute new forms reflecting the current interest rate and revise payments as required by FrnHA: That the Board of commissioners elects to have the interest rate charged by FmHA to be the lower of the rate in effect at either the time of loan approval or loan closing: The proposed rate schedule for water use in as follows: Minimum $11.00 plus 2.50 /1000 gallons This resolution to become a part of the official minutes of the Board of Commissioners meeting held on December 19, 1988. DOCUMENT NO. 2. BUDGET AMENDMENT Harnett County Public Utilities Administrative Unit West Central Fund The Harnett County Board.of Commissioners at a meeting on the 19th day December , 1988, passed the following resolution. Be it resolved that the following amendments be made to the Budget Resolu- tion for the fiscal year ending June 30, 19 89. Code Number Description of Code A M O U N T Increase Decrease 39- 4100 -001 Revenue: 39- 3490 -001 Construction Farmer's Home Grant 130,000. 130,000. Explanation: Farmer's Home grant. Total Appropriation in Current Budget Amount of Increase /Decrease of above Amendment Total Appropriation in Current Amended Budget We the Harnett County Board of Commissioners hereby approve the changes in the Harnett County Budget as indicated above, and have made entry of these changes on the minutes of said Board, this the lgthday of December , 1988. HARNETT COUNTY BOARD OF COMMISSIONERS UMENT NO. 3. RESOLUTION AUTHORIZING ADDITIONAL. CONSTRUCTION - PHASE I PROJECT WEST CENTRAL WATER AND SEWER DISTRICT WHEREAS, at its meeting on October 3, 1988 the Harnett County Board of Commissioners, sitting as the governing body of the West Central Water and Sewer District of Harnett County (hereinafter "the Board "), directed appropriate representatives of the said District to make application to the Farmers Home Administration for a second loan to construct additional water distribution facilities in the first target service area of the District, as part of the District's Phase I project; and WHEREAS, pursuant to the directions of the Board, an application was made to the Farmers Home Administration for an additional loan in the amount of. $130,000.00; and WHEREAS, the Farmers Home Administration has now agreed to make the referenced loan and the Board now desires to make provisions for the construction of the additional water distribution facilities as part of the Phase I project of the District. NOW, THEREFORE, BE IT RESOLVED BY THE HARNETT COUNTY BOARD OF COMMISSIONERS SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY THAT: 1. The District, its officers, agents and attorneys are hereby authorized to take such actions as necessary to meet the requirements of the Farmers Home Administration to complete the processing of the above described additional loan; 2. The District, its officers, agents and attorneys are hereby authorized to implement the necessary procedures to sell bonds or notes of the District in connection with obtaining the said loan proceeds; 3. The District, its officers, agents and attorneys are hereby authorized to execute, pursuant to N.C.Gen.Stat. §143 -129, such contract change orders or similar documents as are required to cause the referenced additional water distribution facilities to be constructed, and to do such other acts and things necessary to complete such construction. Duly adopted this the 19th, day of December, 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 sitting as the governing body of the West Central Water and Sewer District of Harnett County Bill Shaw, Vice - Chairman ATTEST: Vanessa W. Young, G1erk