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HARNETT COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JANUARY 3, 1995
The Harnett County Board of Commissioners met in regular session on
Tuesday, January 3, 1995, in the Commissioners Meeting Room, County
Office Building, Lillington, North Carolina.
I Members present: H. L. Sorrell, Jr., Chairman
Beatrice Bailey Hill, Vice Chairman
Dan B. Andrews
Joseph T. Bowden
Walt Titchener
Staff present: Neil Emory, County Manger
Wm. A. (Tony) Wilder, Assistant County Manager
Dwight W. Snow, County Attorney
Vanessa W. Young, Finance Officer
Kay S. Blanchard, Recording Secretary
Chairman Sorrell called the meeting to order at 9 a.m. and
Commissioner Andrews offered the invocation.
Commissioner Titchener made a motion to ask the staff to check out a
program that is being used in another county requiring clients to
provide community service in exchange for food stamps. Commissioner
Andrews seconded the motion and it passed with a unanimous vote.
Commissioner Hill made a motion that an item be added to the agenda
concerning a legal services agreement with Al Bain, Public Utilities
Attorney, which is required by Farmers Home Administration.
Commissioner Bowden seconded the motion and it passed with a unanimous
vote.
Commissioner Hill moved to approve agenda as published with addition
as noted above. Commissioner Andrews seconded the motion and it
passed with a unanimous vote.
Upon motion by Commissioner Bowden and seconded by Commissioner
I Andrews, the board unanimously approved the following items on the
CONSENT AGENDA ITEMS Consent Agenda:
APPROVED: 1. Minutes: Regular Meeting, December 5, 1994
Special Meeting, December 16, 1994
2. Budget Amendments:
Sheriff's Department
Code 10-5100-0560 Crime Prevention $2,380. increase
Revenue: 10-3830-0333 Donations Crime Prevention 2,380. increase
Sheriff's Department
Code 10-5100-0740 Capital Outlay - Equipment 21,417. increase
10-5100-0020 Salaries & Wages 15,117. decrease
Revenue: 10-3830-0300 Miscellaneous Revenue 6,300. increase
Public Utilities
Code 32-9001-0330 Materials & Supplies 360. decrease
32-9001-0740 Capital Outlay 360. increase
Human Resources {JTPA)
Code 10-7400-0020 Salaries & Wages 8,420. increase
10-7400-0050 FICA Tax Expense 644. increase
10-7400-0060 Group Insurance Expense 960. increase
10-7400-0070 Retirement Expense 223. increase
10-7400-0071 Supplemental Retirement 45. increase
10-7400-0080 Workmen's Compensation 168. increase
10-7400-0140 Travel & Meetings 525. increase
10-7400-0210 Building & Equipment Rent 308. increase
10-7400-0130 Utilities 150. increase
I 10-7400-0110 Postage & Telephone 150. increase
10-7400-0330 Materials & Supplies 200. increase
10-7400-0230 Special Events 742. increase
10-7400-0570 Miscellaneous Expense 50. increase
10-7400-0260 Advertising 220. increase
10-7400-0720 Support Services 13,226. increase
10-7400-0040 Professional Services 685. increase
Revenue: 10-3480-0600 JTPA Funding 26,716. increase
Health Department
Code 10-7600-0100 Employee Training 350. increase
10-7600-0120 Printing & Binding 800. increase
10-7600-0140 Travel & Meetings 800. increase
10-7600-0250 Books & Publications 1,000. increase
10-7600-0260 Advertising 1,300. increase
650
10-7600-0330 Materials & Supplies 4,733. increase
10-7600-0450 Contracted Services 2,000. increase
10-7600-0460 Medical Supplies & Drugs 1,551. increase
10-7600-0740 Capital Outlay-Equipment 1,159. increase
Revenue: 10-3480-0140 Community Base Injury Grant 2,500. increase
10-3480-0281 Breast & Cervical Cancer 5,971. increase
10-3480-0290 Childhood Lead Poisoning
Prevention 5,222. increase I
Sheriff's Department
Code 10-5100-0740 Capital Outlay 4,300. increase
Revenue: 10-3830-0350 Sale of Other Assets 4,300. increase
Board of Elections
Code 10-4300-0740 Capital Outlay 12,000. increase
Revenue: 10-3340-0080 Filing & Registration Fees 12,000. increase
Cooperative Extension Service
Code 10-7308-0020 Salaries & Wages 5,000. increase
10-7308-0060 Fringe Benefits 370. increase
10-7308-0330 Supplies 3,500. increase
10-7308-0140 Travel 530. increase
10-7308-0120 Printing 1,000. increase
10-7308-0040 Consultant 1,400. increase
10-7308-0110 Telephone & Postage 200. increase
Revenue: 10-3480-0960 Children Youth Family Grant 12,000. increase
3. Resolution appointing members to Averasboro Township Tourism
Development Authority (Attachment 1)
ROAD ADDITIONS TO STATE 4. Resolution regarding additions to State Road System (Attachment 2)
SYSTEM
RESOLUTION RE: SUPLUS 5. Resolution authorizing the County's withdrawal from the surplus
COMMODITIES PROGRAM commodities program (Attachment 3)
6, Disposal of records in Emergency Medical Service (Attachment 4)
AIRPORT AID GRANT AGREE. 7. Airport aid grant agreements for the following projects: Land Use
Planning Study and Constructin of Hangar Area Access Taxiways I
CORNELIUS HARNETT Paul Soublet, a Harnett County artist, made a presentation to the
PRESENTATION BY PAUL Board concerning a proposed statue of Cornelius Harnett. Mr. Soublet
SOUBLET has produced a one-third scale model of the proposed statue and is
seeking support to develop the project further. Commissioner Hill
moved to table the matter. Commissioner Andrews seconded the motion
and it passed with a unanimous vote.
LETTER OF CONDo - EAST Janice Pond, Farmer's Home Administration, presented the Letter of
CENTRAL WATER & SEWER Conditions and related documents associated with East Central Water &
Sewer District project for the Board's consideration. Commissioner
Bowden moved for approval of the Letter of Conditions and all related
documents. Commissioner Andrews seconded the motion and it passed
with a unanimous vote. (Attachment 5)
Randy Brodd, CPA, Dixon, adorn & Company, presented and reviewed the
AUDIT REPORT Harnett County Audit Report for F.Y. 93-94.
Richard Covington, Western Medical Group, briefed the Board on
BRIEFING FROM WESTERN current operations of the Western Medical Group and proposed expansion
HEDICAL GROUP project for the Anderson Creek Medical Center.
Chairman Sorrell called to order a public hearing on proposed closing
PUBLIC HEARING ON of the Community Development Block Grant for Boyt Division. Neil
CDBG FOR BOYT DIVISION Emory, County Manager, briefed the group that the purpose of the
public hearing was to obtain comments from the public concerning the
proposed closing of the grant. No comments were offered and Chairman
Sorrell closed the public hearing. No written comments were submitted
for consideration.
Neil Emory, County Manager, presented for the Board's consideration a I
ZONING CHANGE REQUEST zoning change request for Tommy & Debra Stephens, et aI, from RA-20M
FOR TOMMY & DEBRA STEPHENS to RA-30 zoning district, Grove Township, SR 1549 and SR 1550, 324.4
APPROVED acres. Mr. Emory stated that a public hearing was held on October 17,
1994 concerning the zoning change request and consideration of the
matter was tabled at that time. Commissioner Andrews made a motion to
approve the rezoning request. Commissioner Hill seconded the motion
and it passed 3 to 2 with Chairman Sorrell and Commissioner Bowden
casting the dissenting votes.
TIP FOR AIRPORT Tony Wilder, Assist'lnt County Manager, presented for the Board's
consideration a Transportation Improvement Plan for the Airport,
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651
F.Y. 1996-2000. Commissioner Titchener made a motion to approve the
Transportation Imrovement Plan as presented. Commissioner Andrews
seconded the motion and it passed with a unanimous vote.
ENGINEERING AGREEMENTS Neil Emory, County Manager, presented for the Board's consideration
FOR NW WATER & SEWER two engineering agreements for ongoing Public Utilities projects:
AND SW WATER & SEWER 1. Agreement with Marziano & Minier, PA, for Phase 2 Water
PROJECTS Distribution System for the Northwest Water & Sewer District.
I 2. Agreement with Marziano & Minier, PA, for Phase 2 Water
Distribution System for the Southwest Water & Sewer District.
Commissioner Titchener moved for approval of both agreements.
Commissioner Bowden seconded the motion and it passed with a unanimous
vote.
REQUEST FROM BELK FOR Keith Faulkner, Tax Department, presented a request from Belk
RELEASE OF TAX PENALTIES Department Store for release of late listing and payment penalties.
DENIED Charles Burns, Belk Stores, provided an explanation for the request.
Commissioner Andrews moved to deny the request for waiver of the tax
penalties. Commissioner Bowden seconded the motion and it passed with
a unanimous vote.
Bobby Wicker, Tax Administrator, presented for the Board's
RESOLUTION RE: ESTAB. consideration a resolution for authorization to proceed with
OF COUNTY LINE WITH finalizing the county line between Harnett and Lee counties.
LEE COUNTY Commissioner Andrews moved to adopt the resolution. Commissioner
Bowden seconded the motion and it passed with a unanimous vote.
(Attachment 6)
Bobby Wicker, Tax Administrator, briefed the Board on establishment of
ESTABLISHMENT OF COUNTY- the county line between Harnett and Johnston counties. Commissioner
LINE WITH JOHNSTON Sorrell made a motion to authorize the County Manager and the Tax
Administrator to negotiate with Johnston County Manager and Tax
Administrator to survey the area and establish the county line.
Commissioner Titchener seconded the motion and it passed 4 to 1 with
Commissioner Bowden casting the dissenting vote.
Neil Emory, County Manager, presented for the Board's consideration a
Travel Policy for Harnett County Employees. Commissioner Titchener
TRAVEL POLICY ADOPTED moved for adoption of the travel policy effective February 1, 1995.
I Commissioner Bowden seconded the motion and it passed with a unanimous
vote. (Attachment 7)
Neil Emory, County Manager, presented for the Board's consideration
RENEWAL OF ALS PROGRAM renewal of the Advanced Life Support Program contract with Betsy
Johnson Memorial Hospital. The hospital requested an increase in fee
CONTRACT WITH BJH to $30,000. Commissioner Titchener moved to renew the contract with
increase as presented. Commissioner Andrews seconded the motion and
it passed with a unanimous vote.
Neil Emory, County Manager, presented for the Board's consideration a
MATCHING FUNDS FOR request from Harnett Central High School Booster Club for matching
ACTIVITY BUS FOR HARNETT funds to purchase a new activity bus. No action was taken on the
CENTRAL HIGH SCHOOL matter.
Commissioner Hill made a motion to excuse Commissioner Titchener from
COMMISSIONER TITCHENER the remainder of the meeting to leave on a trip to Washington, D.C.
EXCUSED FROM MEETING Commissioner Andrews seconded the motion and it passed with a
unanimous vote.
PROPOSED PENALTY SCHED. Lee Sudia, Fire Marshal, reviewed a proposed penalty schedule for Fire
FOR FIRE CODE VIOLATIONS Code violations and asked the Board for direction concerning the
proposed penalty schedule.
Neil Emory, County Manager, reported on the following items:
1- Staff is following up with school system on inspection
of schools.
2. Consent to Assignment of License Agreement with North
Carolina Communications, Inc. for name change only. The new
name is North Carolina Communications Limited Partnership.
3. Major project has been finalized involving Certificates of
I Participation for capital projects.
Reports were filed with the Board from Sheriff's Department, Veteran's
Affairs, DSS, Fire Marshal's Office, Environmental Health, and Tax
Department. The Tax Attorney's report was also filed with the Board
and is copied into these minutes. (Attachment 8)
Chairman Sorrell stated that the Board would now consider certain
EAST CENTRAL WATER & matters sitting in its capacity as the governing body of East Central
SEWER MEETING Water and Sewer District of Harnett County. Commissioner Hill moved
for adoption of a resolution authorizing necessary steps to proceed
with Bond Anticipation Note Sales for East Central Water and Sewer
District. Commissioner Andrews seconded the motion and it passed with
a unanimous vote. (Attachment 9) Chairman Sorrell closed that
portion of the meetinn
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652
Chairman Sorrell stated that the Board would now consider certain
SOUTH CENTRAL WATER & matters sitting in its capacity as the governing body of South Central
SEWER MEETING Water and Sewer District of Harnett County. Commissioner Hill moved
for adoption of a resolution authorizing necessary steps to proceed
with Bond Anticipation Note Sales for South Central Water and Sewer
District. Commissioner Bowden seconded the motion and it passed with
a unanimous vote. <Attachment 10) Chairman Sorrell closed that
portion of the meeting.
Commissioner Bowden made a motion to approve a Legal Services I
LEGAL SERVICES AGREE. Agreement with Al Bain which is required by Farmers Home
WITH AL BAIN Administration in connection with the South Central Phase III project
and financing. Commissioner Andrews seconded the motion and it passed
with a unanimous vote.
There being no further business, Commissioner Bowden moved for
ADJOURNMENT adjournment of Harnett County Board of Commissioners Meeting, January
3, 1995. Commissioner Andrews seconded the meeting and it passed with
a unanimous vote. The meeting adjourned at 10:45 a.m.
~f ~;(Chairman
~~.~~
Vanessa W. Young, C rk ~ the Board
f<(ttM J. ~lQflI~fJtti
Kay S.~lanchard, Recording Secretary
Attachment 1.
HARNETT COUNTY,
NORTH CAROLINA
RESOLUTION NAMING MEMBERS OF THE I
AVERASBORO TOWNSHIP TOURISM DEVELOPMENT AUTHORITY
THAT WHEREAS, the North Carolina General Assembly did, on the 5th
day of May, 1987, ratify legislation entitled "An Act to Authorize the
Levy of a Room Occupancy and Tourism Development Tax in Averasboro
Township in Harnett County"; and
WHEREAS, the Harnett County Board of Commissioners by resolution
adopted on July 5, 1987, did levy the tax therein authorized in
Averasboro Township, Harnett County, North Carolina, effective on the
1st day of September, 1987; and
WHEREAS, in said resolution so adopted on July 6, 1987, the
Harnett County Board of Commissioners established the Averasboro
Township Tourism Development Authority as prescribed in the above
referenced act; and
WHEREAS, Mr. Billy Tart, operator of Triangle Waffle, and Mr. Lee
Toler, operator of Ramada Inn, have been recommended for reappointment
to the Authority with Mr. Tim Brown recommended as chair for the
authority.
NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of
Commissioners that Mr. Billy Tart and Mr. Lee Toler, shall be and are
hereby reappointed to serve as members of said Authority and Mr. Tim
Brown appointed chair, as set forth in the above referenced Act.
Duly adopted this 3rd day of January, 1995. I
HARNETT COUNTY BOARD OF COMMISSIONERS
/f(kL
, - ~.-.~
/ ' H/ L. So~ell, Jr., Chairman
ATTEST: y
--t::-, . '1)). ~~
Vanessa W. Yo g, lerk
- ----
~--
653
Attachment 2.
HARNETT COUNTY
NORTH CAROLINA
I RESOLUTION
BE IT RESOLVED that the Harnett County Board of
Commissioners do hereby, by proper execution of this
document, request that the North Carolina Department of
Transportation add to the State's Secondary Road System
for maintenance, the below listed streets:
Windsor Subdivision
Windsor Drive
Blair Drive
Brookneal Circle
Adopted this 3rd day of January, 1995.
HARNETT COUNTY BOARD OF COMMISSIONERS
/~~r.. Chairman
HARNETT ~:
NORTH CARO~A
-,j~.~ fI .
.. ~.~w fROM
Van~ SlJiPIl es Ii PROGRAM
I WHEREAS; the Harnett County Board of Commissioners did
accept and agree to operate the surplus commodities program
A h 3 through USDA and NCDA from the period of its inception in
ttac ment. the early 1980's; and
WHEREAS; the Harnett County Board of Commissioners did
assign the operation of this program to the Harnett County
Department of Social Services from October, 1985 through
November, 1994, and that agency having carried out the
program in an exemplary manner for this period, and;
WHEREAS; the schedules, amounts, rules and
reimbursements for said program have been in a constant
state of change; having dropped the most popular item,
cheese, and replacing this item with items of less appeal;
of unexpected forms of commodities and of differing amounts
of all items over a period of approximately three years;
NOW, THEREFORE, BE IT RESOLVED that the Harnett County
Board of Commissioners desires to withdraw from the contract
entered into with the North Carolina Department of
Agriculture and the United States Department of Agriculture
and will plan or execute no additional distributions of
surplus commodities. The Board of Commissioners does hereby
relieve the Harnett County Department of Social Services of
the responsibility for the planning, coordination and
execution of any additional distributions beyond November,
1994.
:.ntl
Duly adopted this ~ day of January, 1995.
Harnett County Board of Commissioners
I~(~~ Jr., Chairman
I ATTEST:
L '1~,~ /
Vanessa W. Y~Clerk
654
Harnett County Emergency Medical Service
Attachment 4. P.O. Box 1487 24 Hour Service
Buies Creek. N.C. 27506
Business Phone: 893-7563 Em..lIi...cy Phone: 893-9111
Danlel W. Gardner, Dlrccror Roaale J. PleaI&Dt, Aut. DirectoT
----- -- I
r Apprt)'/ed by th~ H"rn~tt .
County Soard of cummlsSlcr.ers
MEMORANDUM ,I D~te I - 3 ~ 9 S '- ..2J
\" . ~ .
);-h
TO: HARhA.L.L COUNTY BOARD OF COMMISSIONERS
~Jb..
FROM: DANIEL W. GARD ,DIRECTOR
H1uu~A.L.1. COUNTY EMS
DATE: DECEMBER 1, 1994
RE: DISPOSAL OF EMS RECORDS
I WOULD LIKE TO REQUEST APPROVAL FOR DISPOSAL OF THE FOLLOWING
EMS RECORDS AT HAIu..A.1..L COUNTY EMS:
1- 1988 & 1989 EMS PATIENT LEDGER CARDS
2. 1988 & 1989 AMBULANCE CALL REPORTS & TRIP TI~~lS
3. 1988 & 1989 RECEIPT BOOKS
4. 1988 & 1989 DISPATCH REPORTS
5. 1988 & 1989 MEDICARE & MEDICAID PAYMENT REPORTS
6. 1988 & 1989 MEDICARE CLAIMS
7. 1988 & 1989 RUN LOGS I
8. 1987, 1988 & 1989 MONTHLY & YEARLY REPORTS
DWG:BS
Attachment 5.
1027 Highway 70W
suite 219
I."~"t;.r;,'" Farmen Garner, NC 27529
jfW~ United States
1- d Department of Home
'\ i Agriculture Administration January 3, 1995
Mr. H. L sorrell, Jr.
Chairman, East Central Water & Sewer District
P.o. Box 1119
Lillington, NC 27546
Dear Mr. Sorrell;
This letter is in revision 'of and in addition to our Letter of
Conditions dated January 18, 1994, copy attached herewith, previously I
delivered to you presenting conditions upon which Farmers Home
Administration (FmHA) could consider providing financial services.
This letter is not to be considered as a loan approval or as a
representation as to the availability of funds. Due to the increased
cost of the proposed water distribution project as evidenced by bids
received, additional funds are necessary to fund the project. The
second paragraph of the January 18, 1994, Letter of Conditions is
amended to add $172,000.00 in loan funds changing the loan amount
from $3,608,000 to $3,780,000. In addition to this change in funds,
the District will need to provide evidence to our agency that the
additional funds needed to completely fund the project are available.
All other conditions and representations as 11'" 'f j1' the January 18,
1994, Letter of Conditions are and remain as '. ) ~d in the letter.
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Please complete and return the attached Form FmHA 1942-46 and other 655
related torms, it you desire that further consideration be given to
your application.
If the conditions set forth in the January 18, 1994, Letter of
Conditions and this revision and amendment are not met within twelve
(12) months from the date hereof, FmHA reserves the right to
discontinue the processing of the application for subsequent loan
funds.
Sincerely,
I
I
,
United Stites F.-men 4001 Carya Drive
o.p.tment of Home Suite B
Alrlculture Admlnistrltlon Raleigh, NC 27610
January 18, 1994
Mr. H.L. Sorrell, Jr. .
Chairman, East Central Water & Sewer District
P.o. Box 1119
Lillington, NC 27546
-
Dear Mr. Sorrell:
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
I representation as to the availability of funds. The docket may
be completed on the basis of a loan not to exceed $3,608,000.00
and a development grant not to exceed $2,000,000.00
If FmHA makes the loan, you may make a written re~est that the
interest rate be the lower of the rate in effect at the time of
loan approval or the time of loan closin9. 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 closinq such a request
should ordinarily be submitted at least 30 calendar days before
loan closinq.
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 1942-46, if you
desire that further consideration be given your application.
If the conditions set forth in this letter are not met within
twelve (12) months from the date hereof, FmHA reserves the right
to discontinue the processing of the application.
I REPAYMENT SCHEDULE
The insured loan will be scheduled for repayment over a
period not exceeding 40 years. 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. The first two installment(s)
will be interest only installment(s).
INTERIM FINANCING
The district will obtain temporary construction financing in
accordance with FmHA Instruction 1942-A, subsection 1942.17
and North Carolina Instruction 1942-A.l, III. Interim
financing will be obtained through the sale of bond
anticipation notes with assistance of the North carolina
Local Government Commission.
656 DISBURSEMENT OF FUNDS
If interim financing is used, FmHA loan funds will not be
disbursed until all such funds are exhausted. Loan funds
will be disbursed in a single advance when the bond sale has
been scheduled with the Local Government Commission.
Applicant's Grant funds will be disbursed after grant
closing upon receipt of Form FmHA 440-11 from the grantee.
Each request for funds will cover a 30 day period of time.
FmHA funds will'not be used to re-finance other project
funds.
SECURITY I
security for the loan will consist of a General Obligation
Water Bond authorized and prepared in accordance with FmHA
Instruction 1942-A, subsection 1942.19. 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.
ORGANIZATION
The district must provide the necessary certification,
comments, and recommendations concerning its organization
and authority to issue bonds and compliance with special
laws and regulations in accordance with FmHA Instructions
1942-A, subsection 1942.17, (k) 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 196B.
(Refer to FmHA Instruction 1942.17(k) )
h. Title IX of the Education Amendments of 1972.
. Section 504 of the Rehabilitation Act of 1973.
1..
j. , Age Discrimination Act of 1975~ I
ACCOUNTING, AUDITS, AND REPORTS
Accounting and aUditing will be established and maintained
in accordance with the requirements of North Carolina
General Statutes, ,'_ FmHA Instructions 1942.17(q) and
, .,. approp~ ia tEf~ oMif' . 'C ircunfs-~~'" -Tfie~" audit~report is t'o'."oe.-in'.'.
accordance with OMB circular A-128 for the year(s) in which
the appropriate amount of Federal Assistance is received and
in accordance with FmHA requirements set forth in FmHA
Instructions 1942-A, section 1942.17(q) for other years.
The district is to provide FmHA a copy of their Audit
Contract. A copy of the annual audit report will be
provided FmHA in accordance with FmHA Instruction
1942.17(q).
INSURANCE AND BONDING
Insurance and bonding must be obtained as required by North
Carolina state statutes, and FmHA Instructions 1942-A,
subsection 1942.17(j) (3) . The district will furnish a
certificate concerning the adequacy of insurance and bonding
annually.
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 normally approximate
the total annual DEBT SERVICE REQUIREMENTS for the FmHA
10an(s). The district may make a written request to provide
less coverage, along with justification, to FmHA for their I
review and decision on the request.
The public liability and property damage insurance
requirement should be discussed by the district and their
attorney and the amounts established accordingly in amounts
adequate to protect the district from civil action arising
from the function of the applicant relative to the project.
Fire and extended coverage should be in an amount equal
to the replacement value of all above ground structures
including district owned equipment and machinery housed
therein.
Workman's Comp~nsation Insurance will be maintained by the
district as r('inired by North Carolina General Statutes.
.
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FINAL PLANS AND CONSTRUCTION CONTRACT DOCUMENTS, 657
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 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.
I The construction contract documents must be completed in
accordance with FmHA Instruction 1942-A, Subsection 1942.18.
The district and their 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 acce~table material. IN ANY CASE
WHERE THE APPLICANT PROPOSES TO AWARD A CONTRACT (OR
CONTRACTS) TO A BIDDER OTHER THAN THE APPARENT LOW BIDDER,
THE APPLICANT MUST FIRST OBTAIN CONCURRENCE FROM THE FmHA
STATE DIRECTOR BEFORE TAKING -ACTION TO AWARD THE CONTRACT
(OR CONTRACTS). FmHA reserves the ri~ht not to concur in
any contract where this policy 1S not followed.
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.
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 and a
certified copy of the minutes provided FmHA.
OPERATING BUDGET ,
A water system operating budget must be adopted by the
applicant after approval by FmHA. A water rate
I schedule must be adopted which will provide sufficient
revenue to meet the requirements of the operating
budget. A certified copy of the resolution adopting
the budget must be provided to FmHA.
RULES AND REGULATIONS
Water system rules and regulations must be submitted
to FmHA for approval prior to loan closing.
USE OF SERVICE
An enforceable user agreement with a- penalty clause is
required unless the district has adopted a mandatory
hookup ordinance and agrees in writing to enforce
the ordinance.
'.
WATER PURCHASE/TREATMENT CONTRACT
The district must obtain a water purchase/treatment
contract with Harnett County that will provide for
sufficient water to meet the needs of the district.
Form FmHA 442-30, Water Purchase Contract, can be used
or used as a guide. The contract must be approved by
FmHA prior to loan Closing or start of construction,
whichever occurs first.
GRANT AGREEMENT
The district must adopt Form FmHA 1942-31, Association
Water and Sewer Grant Agreement, at a proper meeting of
I the governing body. Adoption of this document should
be made a part of the official minutes of the district.
Attached is a copy of Fv~_ 1942-31, Association Water
or Sewer System Grant agreement for your review. You
will be required to execute a completed form at the
time of grant Closing.
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 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.
658
GRADUATION
The district will refinance the unpaid balance, in whole ~r
in part, of its debt upon--the request of the Government 1f
at any time it should appear to the Government th~t. the
district is able to refinance it notes/bonds by obta1n1ng a
loan for such purposes from responsible cooperative or
private sources at reasonable rates and terms.
EXCESS FUNDS I
If there is a significant reduction in p:oje~t ,cost a~ a
result of re-design or bids received, the dlstrlct s fund1ng
needs will be re-assessed before loan closing or start of
construction, whichever occurs first.
DEBARMENT CERTIFICATION
The district is to certify that they are not debarred or
. --- suspended for Federal Nonprocurement Programs by the
execution of Form AD-I047, Certification Regarding
Debarment, Suspension and Other Responsibility Matters -
Primary Covered Transactions, prior to loan approval. Also
Form AD-1048, Certification regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion - Lower Tier Covered
Transactions, is to be used by lower tier parties (builders,
contractors, dealers, suppliers, manufacturers, and others)
involved in transactions exceeding $25,000.00
DRUG- FREE WORK PLACE REQUIREMENTS (GRANTS),
The Drug-Free Workplace Act of 1988 (Public Law 100-690) was
incorporated into the Federal Acquisition Regulations by FAC
84-43 dated March 18, 1989. The district will certify that
they will provide a drug-free workplace, are not involved
with drugs and will establish an educational program
concerning drug abuse for employees by executing Form AD-
1049 prior to loan approval.
DEBT COLLECTION POLICIES
The district will acknowledge receipt of debt collection I
policies by executing Form FmHA 1910-11, "Application
certification, Federal Collection Policies For Consumer or
Commercial Debts" prior to loan approval.
DISTRICT'S CONTRIBUTION
The district is to deposit $90,000.00 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 project.
CLOSING INSTRUCTIONS
The loan will be closed in accordance with instructions
issued by the Office of the General Counsel and
applicable FmHA and State procedures.
FINANCIAL COMPENSATION FOR DEFICIENCIES
"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 of
defective part to a level of service equal to that expected
for normal design and/or construction and legal services".
Appraisal I
The purchase of any existing facilities will be based upon
an appraisal prepared by FmHA Program Support Staff.
PROFESSIONAL SERVICES AND CONTRACTS
Contracts or other forms of agreement between the district
and its professional and technical representatives are
required and are subject to FmHA concurrence. FmHA forms
and/or guides are available for use by the district when
appropriate. ".
""~~...,...,..,....,>,,,--~-....- -..--.~......~,-....,...,",,",~
~
REQUIRED TO AVOID ADVERSE ENVIRONMENTA~ 659
MITIGATION MEASURES
IMPACT
The following measures must be accepted and agreed to by the
district prior to loan approval:
A. Floodplain Impact
The cU.striet will adopt a "NO TAP" policy in floodway areas
and in floodplain areas where flood insurance is not
available at raasonable rate..
I B. Impact on Transportation
Waterline construction along rural paved and unpaved roads
will create minor local traffic problems within the
immediate construction Disruption . traffic,
area. 1.n
however, will be minimized by the effective use of barriers
and flagman and by filling all open trenches at the end of
each day. North Carolina Department of Transportation (DOT)
safety regulations wil~ be strictly observed. DOT personnel
will be included in the preconstruct ion conference and
construction progress meetings.
C. Impact on Air Quality
Burning will be performed in accordance with requirement of
permitting agencies. Burning will be kept to a minimum by
hauling debris to the landfill when possible. Emission
control devices will be required for all construction
equipment, as necessary. Specifications will allow the
project engineer to require dust control measures if needed.
D. Impact on Noise Level
Construction equipment will be properly muffled and operated
outside of normal sleeping hours to reduce the noise and
impact of noise associated with construction.
E. Impact on Erosion
Sediment and eros.ion control measures will be strictly
I adhered to at stream crossings. specifications and permits
will require the topography of the area to be restored to
pre-project conditions. No fill or excavation (other than
required to install the water line) will be allowed.
Vegetation will be restored as quickly as site conditions
allow. state personnel from the NC Department of Natural
Resources typically monitor construction activities on a
regular basis and strictly enforce floodplain/wetland
erosion control measures. NC State law requires that a
sediment and erosion control plan be developed and
implemented on the project.
F. Impact Wetlands
To eliminate the possibility of the water system
accommodating future development within designated wetlands,
the following future service restrictions will be adopted
and enforced by the district:
The oistrict will not install a new water service or will
not agree to otherwise provide water service to any
structure, dwelling, building or other improvements, which
is located in whole or in part with designated wetlands, and
which is not already existing, established and completed on
or before the final completion date and placement in
operation of the proposed improvements.
Designated wetlands for the district's services area are
identified on National Wetlands Inventory Maps prepared by
the U.s. Department of Interior, Fish , wildlife Service.
These maps in their most updated form are to be maintained
I on permanent file at the central office of the district.
This restriction shall be adopted by resolution of the
district's governing body and shall be binding upon the
district, its representatives, successors, and . assigns.
This resolution shall in no manner be altered, amended,
rescinded or modified without first obtaining the prior
written consent of the Farmers Home Administration, USDA an
agency of the United States Government.
G. Farmland Impact
To minimize the project's potential impacts on important
farmland, the following mitigation measure will be adopted
and enforced by the district:
660
The District will adopted and enforce a resolution stating
that the sanitary district will not install future water
service taps, larger than normal residential size, to non-
agricultural development on important farmland in any of the
following waterline corridors with written concurrence of
the Farmers Horne Administration:
SR 1705 from NC27 to SR 1704
SR 1542 from SR 1543 to SR 1510 I
SR 1510 from SR 1542 to SR 1403 ~
SR 1403 from SR 1510 to SR ~;5
The district further agrees to select future well and tank
sites, pump stations, etc. to avoid conversion of prime or "
important farmland. -
The district must agree to design and construct the proposed
project to limit capacities to those required to meet
minimal needs of the district and to - comply with state
Requlatory Agency requirements and sound engineering
practices.
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,
/:5/
;
JACKIE E. MCLAMB
District Director
Enclosures
EAST CENTRAL WATER & SEWER DISTRICT OF HARNETT COUNTY 1
RESOLUTION NO:
BE IT RESOLVED I
Let it be known that the Board of Commissioners of the East Central
Water & Sewer District of Harnett County, hereby, amends that
resolution adopted January 18, 1994, (which the Letter of Conditions
dated January 18, 1994, and Form FmHA 1942-47, Loan Resolution dated
January 18, 1994 in connection with the Farmers Home Administration
request for services);
Let it be known that the Board continues to accept the conditions set
forth in a Letter of Conditions dated January 18, 1994, and revised
on January 3, 1995, along with Form FmHA 1942-47, Loan Resolution
dated January 3, 1995 and Form FmHA 1942-31, Grant Agreement
That the Board of Commissioners of the East Central Water and Sewer
District approves as shown on the Form FmHA 442-7, Operating Budget
dated January 3, 1995.
That the Chairman and Clerk be authorized to execute all forms
necessary to obtain a loan from FmHA, including, but not limited to
the following forms:
Form FmHA 1942-47 Loan Resolution
Form FmHA 1942-46 Letter of Intent to Meet Conditions
Form FmHA 442-7 Operating Budget
Form FmHA 400-4 Assurance Agreement
Form FmHA 400-1 Equal Opportunity Agreement
Form FmHA 1940-1 Request for Obligations of Funds
Form FmHA 1910-11 Applicant Certification Federal
Collection Policies
Form FmHA 1942-31 Grant Agreement I
That if the interest rate charged by FmHA should change between this
date and the date of actual approval, the Chairman and Clerk be
authorized to execute new forms reflecting the current interest rate
and revised payments as required by FmHA.
That the Board of Commissioners elects to have the interest 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 is as follows:
Minimum-$10.48 and $2.04/1000 gallons of water usage
,':'.-"--.1' -
661
The resolution to become a part of the official min~tes of the Board
of commissioners meeting held January 3, 1995. Motlon made
by and seconded by . that
the Resolut1on be approved. Motion passed for and against.
ATTEST CHAIRMAN
EAST CENTRAL WATER & SEWER DISTRICT
I \ /)as;tial1 5 \
USDA-FmHA FORM APPROVED
Form FmHA 1942-47 OMB NO, 0575-0015
(Rev. 1-90) LOAN RESOLUTION
(Public Bodies)
A RESOLUTION OF THE BOARD OF ~C;
OF THE FAST CENTRAL WATER & S~ DIS~T(;1' 01" H~F'IT f{)IINTV
AUTI/OIUZING AND PROVIDING FOR TJlE INCURRENCE OF INDEIlTEDNESS FOR TilE PURPOSE OF PROVIDING A
PORTION OF TilE COST OF ACQUIRIN(i. CONSTRlJCTIN(;. ENLAR(iING, IMI)IUlVING, AND/OR EXTENI>IN(i ITS
WATER DISTRIBUTION SYSTFM
FACILITY TO SERVE AN AREA LA WFULL Y WITHIN ITS JURISDICTION TO SERVE.
WHEREAS, it is necessary for the EAST CFNTRAI. WATFR ~ S&1FR I)TC;TRTr.T'
(Public Body)
(herein after called Association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of
THREE MTT T TON SEVEN HUNDRED EIGHIY THOUSAND ANn NO/10OTHS ($1,7RO,OOO_OO)
pursuant to the provisions of T {)('&, ~OVF.RNMFNr ACT (r'1.&.S t5...q~ i IT ~FQ) ; and
WHEREAS, the Association intends to obtain assistance from the Farmers Home Administration, United States Department of Agri-
culture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.) in the planning, financing, and supervision of such undertaking and the 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:
l. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containin~ such
items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government.
I 2. To refinance the unpaid balance, in whole or in part, of its bonds upon the request of the Government if at any time
it shall appear to the Government that the Association is able to refmance its bonds by obtaining a loan for such purposes
from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods
of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (7 U.S.C. 1 983(c)).
3. To provide for, execute, and comply with Form FmHA 400-4, "Assurance Agreement," and Form FmHA 400-1, "Equal
Opportunity Agreement," including an "Equal Opportunity Clause," which clause is to be incorporated in, or attached
as a rider to, each construction contract and subcontract involving in excess of $10,000.
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-
enant or agreement contained herein or in the instruments incident to making or insuring the loan, the Governnment 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 the 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 therem, or permit others
to do so without thp orior written consent of the Government.
7. Not to defease. the bonds, or to borrow money, enter into any contract or agreement, or otherwise incur any liabilities
for any 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 hy the Government. Funds may be
deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed
hy 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 make prepayments on the loan. Revenue cannot be used
to pay any expenses which are not directly incurred for the facility financed by FmHA. No free service or use of the
I facility will be permitted.
II. To acquire and maintain such insurance and fidelity bond coverage as may be required bv the.Government.
12. To establish and maintain such books and records relating to the operation of the lacility and its financial affairs and to
provide for required audit thereof as required by the Government, to provide the Government a copy of each such audit
without its request, and to forward to the Government such additional information and reports as it may from time to
time require.
13. To provide the Government at all reasonahle times access to all hooks and records relatin~ to the facility and access to
the property of the system so that the (;overnlllent may ascertain that the Association is complying with the provisions
hereof and of the instruments incident to the makillf: or insuring of the loan.
14. That if the Government requires that a reserve al'C'ount be established and maintained, disbursements from that account
may be used when necessary for payments due on the bond if sufficient funds are not otherwise available. With the prior
written approval of the Government, funds may be withdrawn for:
(a) Paying the cost of repairing or replacing any damag., '0 the facility caused by catastrophe.
(b) Repairing or replacing short-lived assets.
(c) Making extensions or improvements to the far;'"
Any time funds are disbursed from the reserve 3' U ional deposits will be required until the reserve account has
reached the required funded level.
--
-------
662
CERTIFICATION TO BE EXECUTED AT LOAN CLOSING
I, thc undersigncd, as of the
hereby certify that the of such Association is composed of
members, of whom ,constituting a quorum, were present at a meeting thereof duly called and
held on the day of , 19 _; and that the foregoing resolution was adopted at such meeting
by the vote shown above. I further certify that as of , I
the date of closing of the loan from the Farmers Home Administration, said resolution remains in effect and has not been rescinded or
amended in any way.
Da ted, this day of ,19_.
Title
*U,S,GPO:1990.0.717.014/22842
15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain
FmJlA's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which
are feasiblc and legal, such person shall have a direct righ t of action against the Association or public body.
16. To comply with the 'measures identified in the Government's environmental impact analysis for this facility for the pur-
pose of avoiding or reducing the adverse environmental impacts of the facility's construction or operation.
17. To accept a grant in an amount not to exceed $ ? o.nn o.nn nn
under the terms offered by the Government; that the r.1iA TRf'1AN
and I.TFR I( of the Association are hereby authorized and empowered to take all action necessary
or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant; and
to operate the facility under the terms offered in said grant agreement(s).
The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan, unless otherwise
specifically provided by the terms of such instrument, shall be binding upon the Association as long as the bonds are held or
insured by the Government or assignee. The provisions of sections 6 through 17 hereof may be provided for in more specific
detail in the bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance
should be found to be inconsistent with the provisions hcreof, these provisions shall be construed as controlling hetwecn the
Association and the Government or assignee
The vote was: Yeas Nays Absent I
IN WITNESS WHEREOF, the RnARO OF rnMMT~~TONFR~ of the
FAST C:EN'fRAf. lJATF.R ANn SF.\JF.R DTSTRTCT OF HARN~II "or IN'IY
has duly adopted this resolution and caused it
to be executed by the officers below in duplicate on this 1RO day of . JANUARY ,19~.
EAST Lt'.l'Ui:<AL WATER & SEWER DISTRICT
(SEAL) By
H.L. SORRELL, JR.
Attest: Title CHAIRMAN
VANESSA W. YOUNG
Titl,. SEr.RF.TARY
Form FmHA 1942-31 fORM APPROVED
(Rev. 12-89) OMB NO, 0575-0074
UNITED STATES DEPARTMENT or AGRICULTURE
rARMERS HOME ADMINISTRATION
ASSOCIATION WATER OR SEWER SYSTEM (;RANT AGREEMENT
THIS AGREEMENT dated TAN! JARY 1 , 19 -95.. , between
FAST CENTRAL WATER & SEWER DTSTRTr.T OF HARNl'TI' r()I1NTy
a public corporation organized and operating under jRTTr.IE 6 OF CHAPTER 167 A OF 1l-1F NOR1H CAROLINA I
- _GENERAL _-5Ti\TUIES___, ------ - -- -.- - - ----------- ..- -----...---------- -
(tl/ll"orilin~ Slallllt')
herein called "Grantee," and the Unitcd States of America acting through the Farmers Home Administration, Department of Agri-
culture, herein called "Grantor," WITNESSETH:
WIIERE^S
Grantce has detcrmined to undertake a projcct of acquisition, construction, enlargement, or capital improvement of a (water) (sewer)
system to serve the area under its jurisdiction at an e<;timated cost of S 5,937, 100 00 and has duly authorized
the undertaking of such project.
663
Grantee is able to finance not more than $ 3.780.000.00 of the development costs through revenues,
charges, taxes or assessments, or funds otherwise available to Grantee resulting in a reasonable user charge.
Said sum of S 3.780.000.00 bas been comitted to and by Grantee for such project development costs,
Grantor has agreed to grant the Grantee a sum not to exceed S 2,000,000.00 or 34 percent
of said development costs, whichever is the lesser, subject to the terms and conditions established by the Grantor. Provided, however,
that the proportionate share of any grant funds actually advanced and not needed for grant purposes shall be returned immediately to
the Grantor. The Grantor may tenninate the grant in whole, or in part, at any time before the date of completion, whenever it is
I detennined that the Grantee has raUed to comply with the conditions of the grant.
NOW, THEREFORE, In consideration of said grant by Grantor to Grantee, to be made pursuant to Section 306 (a) of the
Consolidated Farm and Rural Development Act for the purpose only of defraying a part not to exceed 34
percent of the development costs, as defined by applicable Farmers Home Administration instructions.
GRANTEE AGREES THAT GRANTEE WILL:
A, Cause said project to be constructed within the total sums available to it, including said grant, in accordance with the
projed plans and specifications and any modifications thereof prepared by Grantee Hnd approved hy (;rantor.
B. Permit periodic inspection of the construction by a representative of Grantor during construction.
C. Comply with any measures identified in the Government's environmental impact analysis for this facility for the pur-
pose of avoiding or reducing the adverse environmental impacts of the facility's construction or operation.
D. Comply with all applicable state and federal laws and regulations and manage, operate and maintain the system, inclUding
this project if less than Ihe whole of said system, continuously in an efficient and economical manner,
E. Makc the services of said system available within its capacity to all persons in Grantet.,~ service area without discrimina-
tion as 10 race, color. religion. sex, national origin.. age, marital status, or physical or mental handll :!P (possess capacity to enter inlo
legal contract for servil;es) at reasonable charges, including assessments, taxes, or fees in accordance with a scheduk of such charges.
whether for one or lIIore classes of service, adopted hy n'sohllion date _ JANUARY._3+ ----- - . 1935. as may
he modified from time to time by (;ranlce. The initial ratl' schedule must he approved hy Grantor. Thereafter, Grantee lIlay make surh
modifications to the rate system as long as the rate schedule rcmains reasonable and nondiscriminatory.
F. Adjust its operating costs and service charges from time to time to provide for adequate operation and maintenance,
emergency repair reserves, obsolescence reserves, debt service and debt service reserves.
G. Expand its system from time to time to meet reasonably anticipated growth or service requirements in the area within
its jurisdiction.
H. Provide Grantor with such periodic reports as it may require and permit periodic inspection of its operations by a re-
presentative of the Grantor,
l. To execute Forms FmHA 400-1, "Equal Opportunity Agreement," and FmHA 400-4, "Assurance Agreement," and any
other agreements required by Grantor which Grantee is legalJy authorized to execute. If any such forms have been executed by
Grantee as a result of a loan being made to Grantee by Grantor contemporaneously with the making of this Grant, another form of
the same type need not be executed in connection with this Grant.
I J. Upon any default under its representations or agreements set forth in this instrument, or in the instruments incident to
the awarding of the grant, Grantee, at the option and demand of Grantor, to the ex tent legally permissible, will repay to grantor
forthwith the original amount of the grant received wilh the interest accruing thereon from the date of default at the market rate
for water and waste disposal loan assistance in effect on the date hereof or at the time the default occurred, whichever is greater,
Default by the Grantee will constitute termination of the grant thereby causing cancellation of Federal assistance under the grant.
The provisions of this Grant Agreement may be enforced by Grantor, at its option and without regard to prior waivers by it of pre-
vious defaults of Grantee, by judicial proceedings to require specific perfonnance of the terms of this Grant Agreement or by such
other proceedings in law or equity, in either Federal or State courts, as may be deemed necessary by Grantor to assure compliance
with the provisions of this Grant Agreement and the laws and regulations under which this grant is made.
K. Return immediately to Grantor, as required by the regulations of Grantor, any grant funds actually advanced and not
needed by Grantee for approved purposes.
L. Use the real property including land, land improvements, structures, and appurtenances thereto, for authorized purposes
of the grant as long as needed.
1. Title to real property shall vest in the recipient subject to the condition that the Grantee shall use the real property
for the authorized purpose of the original grant as long as needed.
2. The (;rantee shall obtain approval hy the Grantor agency for the use of the real property in other projects when
the Grantee lktermines that the properly is no longer needed lor the original grant purposes. lIsl' in ot her projl~cts shall he
limited to those under other Federal grant programs or programs that have purposes consistent with those authorized for sup-
port by the Grantor.
3. When the real property is no longer needed as provided in I and 2 above, the Grantee shall request disposition
instructions from the Grantor agency or its successor Federal agency. The Grantor agency shall observe the foUowine rules in
the disposition instructions:
(a) The Grantor may be permitted to retain title after it compensates the Federal Government in an amount
computed by applying the Federal percentage of participation in the cost of the original project to the fair market value
of the property.
(b) The Grantee may be directed to sell the property under guidelines provided by the Grantor agency ana pay
the Federal Government an amount computed by applying the Federal percentage of participation in the cost of the
original project to the proceeds from sale (after deducting actual and reasonable selling and fix-up expenses, if any, from
the sale proceeds). When the Grantee is authorized or required to sell the property, proper sales procedures shall be estab-
lished that provide for competition to the extent practicable and result in the highest possible return.
(c) The Grantee may be directed to transfer title to the property to the Federal Government provided that in
such cases the Grantee shall be entitled to compensation computed by applying the Grantee's percentage of participa-
tion in the cost of the program or project to the current fair market value of the property.
'11l<' Grant Agreemcnt covers thc followi1/g described rcal prop' ,. (/I ~l' cOlltitluati'l/1 shl'l'ts as 1/l'Cess<1lft,
I ALL TANK SITES, PUMP STATION SITES, MEn'..K VAuLT SITES, ALL RIGHTS-OF-WA: S OR EASEMENTS THAT
ARE OBTAINED BY EAST CENTRAL WATER & SEWER DISTRICT OF HAlU';t;n COUNTY BY NEGOTIATIONS,
CONDEMNATIONS, OR PURrnASE OF EXISTING SYSTEMS.
M, Ahide by the following conditions pertaining to nonexpendahle personal property which is furnished hy the {;rantor or
acquired wholly or in part with grant funds. NonexpenJable personal property means tangible personal property having a useful
life of more than one year and an acqUisition cost of $300 or more per unit. A Grantee may use its own definition of nonexpe.idable
per~onal property provided ~uch definition would at lea~l include all tangible personal personal property as defined above.
1. Use of nO'1expendable property.
(a) The Grantee shaU use the prop.'rty ill the project for which it was acquired as long as needed. When no longer
needed fOT the original project, the Grantee 5h;. ' use the property in connection with its other FederaUy sponsored activ-
ities, if any, in the follOWing order of priority:
(I) Activities sponsored by FmH ,'\.
(2) Activitie~ sponsored by other Federal agencies.
(b) During the time that nonexpendable personal property is held for use on the project for which
it was acquired, the Grantee shall make it available for use on other projects if such other use will not interfere with the
work on the project for which the property was originally acquired. First preference for such other use shall be given to
FmHA sponsored projects, Second preference will be give!' .. 'ther Federally sponsored projects.
3
664 2. Disposition of nonexpendable property. When the Grantee no longer needs the property as provided in paragraph
(a) ahove, the proprrty may he Ilsed for other aclivite", in al:cordanl:e with the following standanls:
(a) Nonexpendable property with a unit acquisition cost of less than S I ,000. The Grantee may use the property
for other activities without reimbursement to the Federal Government or sell the property and retain the proceeds.
(b) Nonexpendable personal property with a unit acquisiton cost of S 1,000 or more. The Grantee may retain
the property for other Ilses provided that compensation is made to the original Grantor agency or its Sllecessor. The
amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original
project or program to the current fair market value of the property. If the Grantee has no need for the property andJhe
property has further use value, the Grantee shall request disposition instructions from the original Grantor agency.
The Grailtor agency shall determine whether the property can be used to meet the agency's requirements. If no require-
ment exists within that agency, the availability of the property shall be reported, in accordance with the guidelines of
the Federal Property Management Regulations (FPMR), to the General Services Administration by the Grantor agency
to determine whether a requirement for the property exists in other Federal agencies. The Grantor agency shall issue I
instructions to the Grantee no later than 120 days after the Grantee request and the following procedures shall govern:
(I) If so instructed or if disposition instructions are not issued within 120 calendar days after the Grantee's
request, the Grantee shall sell the property and reimburse the Grantor agency an amount computed by applying
to the sales proceeds the percentage of Federal participation in the cost of the original project or program. How-
ever, the Grantee shall be permitted to deduct and retain from the Federal share $100 or ten percent of the pro-
ceeds, whichever is greater, for the Grantee's selling anct'handling expenses.
(2) If the Grantee is instructed to ship the property elsewhere the Grantee shall be reimbursed by the
benefitting Federal agency with an amount which is computed by applying the percentage of the Grantee parti-
cipation in the cost of the original grant project or program to the current fair market value of the property, plus
any reasonable shipping or interim storage costs incurred.
(3) If the Grantee is instructed to otherwise dispose of the property, the Grantee shall be reimbursed by the
Grantor agency for such costs incurred in its disposition.
3. The Grantee's property management standards for nonexpendable personal property shall also include:
(a) Property records which accurately provide for: a description of the property; manufacturer's serial number
or other identification number; acquisition date and cost; source of the property; percentage (at the end of budget year) of
Federal participation in the cost of the project for which the property was acquired; location, use and condition of the pro-
perty and the date the information was reported; and ultimate disposition data including sales price or the method used to
determine current fair market value if the Grantee reimburses the Grantor for its share.
(b) A physical inventory of property shall be taken and the results reconciled with the property records at least
\ once every two years to verify the existence, current utilization, and continued need for the property.
(c) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the
property. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented.
(d) Adequate maintenance procedures shall be implemented to keep the property in good condition.
(e) Proper sales procedures shall be established for unneeded property which would provide for competition to
the extent practicable and result in the highest possible return.
\
This Grant Agreement covers the following described nonexpendable property (use continuation sheets as necessary).
ALL DISTRIBUTIONS LINES, MElr..RS, VALVES, FIRE HYDRANTS, WATER STORAGE TANKS, All. BUII1>INGS,
Mk>Tlli MEnJ<S, AND ANY AND ALL 01HER FACILITIES CONSTRUl.IW OR PURaIASED BY FAST CENTRAL
WATER & SEWER DISTRICT OF ~t;lT COUNTY AS A PART OF ITS INITIAL WATER DISTRIBUTION SYSTEM
N. Provide Financial Management Systems which will include:
I. Accurate, current, and complete disclosure of the financial results of each grant. Financial reporting will be on an
accrual basis.
2. Records which identify adequately the source and application of funds for grant-supported activities. Those records
shall contain information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, I
outlays, and income.
3. Effective control over and accountability for a1\ funds, property and other assets. Grantees shall adequately safe-
guard all such assets and shall assure that they are used solely for authorized purposes.
4. Accounting records supported by source documentation.
O. Retain financial records, supporting documents, statistical records, and all other records pertinent to the grant for a
period of at least three years after grant closing except that the records shall be retained beyond the three-year period if audit findings
have not been resolved. Microfilm copies may be substituted in lieu of original records. The Grantor and the Comptroller General of
the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers, and records
of the Grantee's government which are pertinent to the specific grant program for the purpose of making audits, examinations, ex-
cerpts and transcripts.
, P. Provide information as rcquested by the Grantor to dctermine the need for and complete any necessary Environmental
Impact Statements.
Q. Provide an audit report prepared in sufficient detail to allow the Grantor to determine that funds have been used in
compliance with the proposal, any applicable laws and regulations and this Agreement.
R. Agree to account for and to return to Grantor interest earned on grant funds pending this disbursement for program
purposes when the Grantee is a unit of local government or a nonprofit organization. States and agencies or instrumentalities of
states shall not be held accountable for interest earned on grant funds pending their disbursement.
S. Not encumber, transfer or dispose of the property or any part thereof, furnished by the Grantor or acquired wholly
or in part with Grantor funds without the written consent of the Grantor except as provided in items K and Labove.
T. Include in all contracts for construction or repair a provision for compliance with the Copeland "Anti-Kick Back" Al:t
(18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR, Part 3). The Grantee shall report all suspected or
reported violations to the Grantor,
U. In construction contracts in excess of $2,000 and in other conttacts in excess of 52,500 which involve the employment
of mechanics or laborers, to include a provision for compliance with Sections 103 and 107 of the Contract Work Hours and Safety
Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR, Part 5).
V. To include in all contracts in excess of 5100,000 a provision that the contractor agrees to comply with all the require-
ments of Section 114 of the Clean Air Act (42 U.S.c. ~1875C-9) and Section 308 of the Water Pollution Control Act (33 U.S,C,
~1318) relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in Section 114
of the Clean Air Act and Section 308 of the Water Pollution Control Act and all regulations and guidelines issued thereunder after
the award of the contract. Such regulations and guidelines can be found in 40 CFR 15.4 and 40 FR 17126 dated April 16, 1975.
In so doing the Contractor further agrees:
1. As a condition for the award of contract, to notify the Owner of the receipt of any communication from the Envi-
ronmental Protection Agency (EPA) indicating that a facility to be utilized in the performance of the contract is under con-
sideration to be listed on the EPA list of Violating Facilities, Prompt notification is required prior to contract award. I
2. To certify that any facility to be utilized in the performance of any nonexempt contractor subcontract is not listed
on the EPA list of Violating Facilities pursuant to 40 CFR 15.20 as of the date of contract award.
3. To include or cause to be included the above criteria and the requirements in every nonexempt subcontract and
that the Contractor will take such action as the Government may direct as a means of enforcing such provisions.
As used in these paragraphs the term "facility" means any building, plan, installation, structure, mine, vessel or other floating craft,
location, or site of operations, owned, leased, or supervised by a Grantee, cooperator, contractor, or subcontractor, to be utilized
in the performance of a grant, agreement,contract, subgrant, or subcontract. Where a location or site of operation contains or in-
cludes more than one building, plant, installation, or structure, the entire location shall be deemed to be a facility except where the
Director, Office of Federal Activities, Environmental Protection Agency, determines that independent facilities are co-located in one
geographical area.
W. The following clause is applicable to nonprofit organizations:
~ a condition of this Grant or Cooperative Agreement, the recipient assures and certifies that it is in compliance with
and will comply in the camsI.' of the Agreement with all applicable laws, regulations, Executive Orders and
other generally applicable requir.,.." 'nts, including those set out in 7 CFR 3015.205(-b), which hereby are incorporated
in this A." , ,," ...ent by referenC'f' c- l. ~tatutory provisions as are specifically set forth herein.
:<':1',; 1,:~,:."_. ~,~.j:.:t~ ~'.'
665
GRANTOR AGREES THAT IT:
A. Will make .vanabl. to Orant.. for the purpose of this Alreement not to exceed S 27000,000,00
whioh It wlU .d\lI,.N to Or.nl.' to meet not to exceed 14 percent of the development costs of the project in accordance
with the actual II..d. of (irant.. all determined by Grantor.
e. Wtll .Hi.t Orant.., within avaOable .pproprlations, with such technical assistance as Grantor deems. appropriate in
plannln. the project and coordinating the plan with local official comprehensive plans for sewer and water and With any State or
.,.a plans for the ar.a in which the project is located.
C. At its sol. discretion and at any time may live any consent, deferment, subordination, release, satisfaction, or termina-
I tion of any or .11 of Grantee's ,rant obUptions, with or without valuable consideration, upon such terms and conditions as Grantor
may d.t,nnin' to b. (I) advisable to further the purpose of the grant or to protect Grantor's financial interest therein and (2) con.
sistent with both the statutory purposes of the grant and the limitations of the statutory authority under which it is made.
TERMINATION OF THIS AGREEMENT
This Agreement may be terminated for cause in the event of default on the part of the Grantee as prOVided in Paragraph I
above or for convenience of the Grantor and Grantee prior to the date of completion of the grant purpose. Termination for con-
venience will occur when both the Grantee and Grantor agree that the continuation of the project will not produce beneficial rcsults
commensurate with the further expenditure of funds,
IN WITNESS WHEREOF Grantee on the date first above written has caused these presence to be executed by its duly author-
ized C'HATRMAN
and attested and its corporated seal affixed by its duly authorized CLERK
ATTEST:
By VANESSA W. YOUNG By
H.1. SORRElL, JR.
CLERK CHAIRMAN
(Til/c) (Title)
UNITED STATES OF AMERICA
FARMERS HOME ADMINISTRATION
By
I (Title)
"orm t-mHA 442-/
{Rev. 8-12-76) OPERA TlNG BUDGET
Name Address
EN?T CENTRAL WATER & SRWRR DISTRTC'J' P.O ROY 111 Q J'- T IJT TbTCIOM
Applicant Fiscal Year County State (blcluJitlg ZIP Code)
From JULY 1 To JUNE J HAJ?f"t<,IT l\lr 77r:..t..r.
I 19 q3-q4 I . I
19 Q4-9'l 19 QI)-Qr. 19 First Full Year
OPERATING INCCME (1) (2) (3) (4) (5)
I. WATER SALES -O- J 00 QQO 700,000 I t... r:..4.,.6S.6
2. TAP-ON FF.R~ 10,000 ~ 'l!4000
3.
4.
5. Miscellaneous I I
6. Less: Allowances and ( ) l ( ) ( )k ) I(
Deductions )
7. Total Opcratinf Income I I I 4';4,I1'lh
(Add Lines 1 trough 6) 30,0Qn 1~ ?~
OPERATING EXPENSES
EMPLOYEE
8. SALARIES & ~SL 15.000 4E4000 u...zoo 72,700
9. OFF~ &. ADM. EXP. 1.....QD.CI I ~.f'()n 4QQO I 't,.(XY'
I 10. MSC. RXPF.NSF.~ 1 ...000 I ~ I 1~ I 12.3(1"
11. UTILITIES 500 I 3.000 I 7.000 ~
12. MAINTENANCE -0- I 1. 000 2.000 I 4.000
13.SUPPLIES.CHEMS.,ETC. 'iQO t.JlQO w:w I l ?CllO
14. liATER P(JRCH~ -0- 27,600 I u::: I 110 ()(Y'
15. Interest (FmHA) ~
-0- 144.320 ~
16. Depreciation I
17. Total Operatinft Expense 18.000 I ?~? Q.2C,'I I [,.1 Q QlJ'\
(Add Lines 8 trough 16) '\2M t;lc;
18. NET OPERATING INCOME .
(LOSS) (Line 7 less 17) 12.000 -82,920 -~ 14.71f.
, I
-. . --_. --,
666 NONOPERATING INCOME
19.
20.
21. Total Nonogerating Income
(Add 19 an 20)
22. NET INCOME (LOSSJ
(Add Lines 18 and 21
(transfer to line A Schedule 12,000 -82,920 -74,615 . . 34,716
.7' .
4% BAN NOTE 3~608,OOO = 144,320 Budget and Projected Cash Flow Approved by Governing Body
5.125% REeD X 3,608,000 = 184,910
~(BAN RATE) + ~(RECD RATE)1995-~4\est. 1-3-QS
72,460 + 92,455 = 164,915 VANESSA W. YomK; Secretary Date
5.25% X 172,000 = 9,030 I
l-1-qE)
H.L. SORREll,JR. Approprillte Officiol Date
PROJECTED CASH FLOW
First
19 q1-q4 19q4-ql) 19 9~-9h 19 Full Year
A. Line 22 from Schedule 1 Income (105s) 12.000 -82,Q20 -74,61'5 1uJ716
~
B. Items in Operations not Requiring Cash:
1. Depreciation (line 16 Schedule 1)
2. Othew
C. Cash Provided From:
1. Proceeds from FmHA loan/grant 5. ffE,an
2. Proceeds from others 90.000
3. Increase (Decrease) in Accounts Payable, Accruals
and other Current Liabilities
4. Decrease (Increase) in Accounti Receivable, Inventories
and Other Current Assets (Exclude Cash)
5. Other: BAN 3,ffE, an
6. =
D. Total all A, Band C Items 102.000 3,52'5,cm 5,'511,1RE) J!,J1 (;
E. !=!!: Cash Expended for:
1. All Construction, Equipment and New Capital Items em. 000 J.J71 lfll 2,an,an
(loan and Grant funds) ~JN; UA.'t:5J.:.
2. ~..1iIdad Additiol1J to Property. 42.000 ~O. 000
Plant and Equipment
3. Principal Payment FmHA Loan 3l. " 'p8q ; I
4. Principal Pa~ment Other Loan.
S. Other.REP Y BAN "~JCYn
6. Total E 1 through 5 .qO,OOO ~: ul '\lCll.. Ii /~JCYn
Add
- N l..L 12.000 123,980 NLA
F. Beginning Cash Balances
G. Ending Cash Balances (Total of D Minus E 6 Plus F) S 12.000 !lZ.1. qRO S q~S U2J
Item G Cash Balances Composed of:
Construction Account S , S S S
Revenue Account
Debt Payment Account
O&M Account -1U.J
Reserve Account ...2... 36'5
Funded De~eciation Account
Others' AD lTONAL EOUIPMENT PURCHi\SE 12.000
CONSTRUCTION Tf.4.LMEST ACCOUNT ] 23 , QRO
Total - Agrees with Item G 112.000 S 121 QRr Sq 1fiE) S L62J
. - - ._-
FORM APPROVED
OMB NO. 0575-0015
UNITED STATES DEPARTMENT OF AGRICULTURE
FARMERS HOME ADMINISTRATION
Form FmHA J94246
(Rev. 9-89)
- I
LETTER OF INTENT TO MEET CONDITIONS' :
Date . JANIJA'llV 1 1QQ!:\
,
TO: Farmers Home Administration
lh'~ed States Department of Agriculture
1027 HIGHWAY 70 W
SUITE 219
GARNER, ~OfI~~eAddrus)
We have reviewed and understand the conditions set forth in your Jetter dated JANUARY 18 ~ 1Q94
AND REVISED ON JANUARU. 1.995 .
667
It is our intent to meet all of them not later than JANUARY 3, 1996 .
WE h~I RQJEST mAT 'DIE .uU.J!AI!.).L RATE TO BE 'IHE I.alm OF .L.tU. RATE IN Ul'J!A".a.
AX 'DIE TIME OF lDAN APPROVAL OR mE TIME OF LOAN Cl..QSIR;.
EAST ~~..u:u\t. WATER & S~ DI&'JRIG:r OF
(N... of Auoc"tion) ~.a..a. COON'lY
I BY
H.L. SOR.R.EU,JR.
CHAIRMAN
(I'itlB )
AJ. J..l!ST :
-- ----------- --------
CLERK
t'Orm to"'"" 1~'1 Ht:UUC::i I rUH UttLlu"'..UN u~ rUNU~
Rev. 11-93)
1. CASE NUMBER
ST CO BORROWER 10
:LIB I 0 1 4 I 3 1 0 I 5 I 6 111 6 1 6 1 7 13 14 14/ I I I I
2. BORROWER NAME 3. NUMBER NAME FIELDS
E tA 1~IT I ICIEINITIRIAILr IWrAITIFIRI I ? I (1,2, or 3 'rom Item 2)
4. STATE NAME
A IN IDt ISIEIWIEIRI IDIIISITIRIIICITI L NIOIR ITIH I Ir. IA lij 10 1 I J II NI AI I
5. COUNTY NAME
7. TYPE OF 4. PU8l1C BODY 8. COLLATERAL CODE
APPLICANT 5. ASSOC. OF '.REAlESTAte 4.MACHINERYONlY
FARMERS SECURED 5 . LIVESTOCK ONLY
1 - WHITE 4 . HISPANIC O-NONE(SEEFNR) '.ORa.OF 2. REAL ESTATE 8,CROPSONlY 1 . EMPLOYEE
, . INlllIIIIlUAL FARMERS AND CHATTEL 1". SECURED BY 2 . MEIotlIER OF FAMIl. Y
I 2 . BlACK 5 - A/PI 41 2 . PARTNERSHII' WORl<ERS 6 1'.NOTEONlYOR BONOS I 3 . ClOSE RELATIVE
I 3-~AN 3. CORPORATION 7. OTHER CHATTEL ONlY 4 ASSOC.
10. SEXCODE ~:=.~OWNED 11. MARITAL STATUS 12. VETRERAN COOE 13. CREDIT REPORT
6 I ,. MAlE 5. ORGAN. FEMAlE OWNED I 1 . MARRIED 3. UNMARRIED (INCLUDES I '.YES '.YES
2 . FEMALE 8 . PUBlIC BODY 2. SEPARATED WIOOWEOIOIVOFICED) ~.~ ?I 2.NO
14. DIRECT PAYMENT 15. TYPE OF PAYMENT 16. FEE INSPEcnON 17. INTEREST CREDIT
31 71 t . MONTHLY 3 . SEMI.ANNUAll Y ') I ' -YES I ' . YES (FOR SFH 0Hl. Y)
ISH FM/} 2 . ANNUAU. Y 4 - atJARTERl Y 2-NO 2.NO
18. COMMUNITY SIZE 19. DWELLING TYPE/USE OF FUNDS CODE
1. 10.000 OR LESS (FOR SPH AND
2. OVER 10.000 HI'G 0Hl. YI
. '.
, . '.'
20. TYPE OF , 21. PURPOSE CODE 22. SOURCE OF FUNDS 23. TYPE OF AcnoH
ASSISTANCE , . OlIUGATION OHlY
0,611. ,s. RIll I 21 1 / 2. OIllIGA~K RE<lUEST
I 3. CORRECTION OF OBUGATIdN
24. TYPE OF SUBMISSION 25. AMOUNT OF LOAN I 21. AMOUNT OF GRANT
1 . tNlT All 1010101
2 I 2. SUBSEOUENT 111 712~0'OI01010 I I I I I I
'ZT. AMOUNT OF IMMEDIATE 28. DATE OF 29. INTEREST RATE 30. REPAYMENT TERMS
ADVANCE APPROVAL
31. INCOME CATEGORY CODES 32. LOW INCOME 33. ADJUSTED F.u.L Y INCOME
LIMIT -MAX.
I 1 . VERY lOW 3. MODERATE 10,01 .010,01
2.lOW 4-ABOVEMODERATE ' I ) I I I J ,
34. R.E. INSURANCE 35. R.E. TAXES 36. R.E. TAXES 37. NOTE INSTALLMENT INELIGIBLE
1st Year 2nd Year
I I , 10,01 I I I 10,01 I I I 10101 I I I 10101
38. TYPE OF UNIT
1 . FARM TRACT
2 . NON-FARM TRACT
I 2 - UMtTED i' "'....~.,
1 - FUll PROFIT 3 - NONPROFIT
42. OBLlGAnON DATE 43. BEGINNING FARIlERlRANCHER
MO DA VR I (SH FMI)
I I-I I I-I I I
If the decision contained above in this form result.r in denial, reduct., 'r cancellation of FmHA as.ristance, you may appeal this decision and have a hearing or
you may request a rel'iew in /ieu of a hearing. PI"nse use the form ' ;n"',/(Iedfor ,his purpose.
ORIGINAL. Borrow", c.. FOld.. I l. \ FmHA 1940-1 (Rev. 11-93)
_.
668 \ \
CERTIFICATION APPROVAL .
For All Fanners Programs EM. OL, PO, and SW Loans
This loan is approved subject to the availability of funds. If this loan does not close for any reason within 90 days from the date '
of approval on this document, the a.. .. ' ",val official will request updated eligibility infonnation. The undersigned loan applicant ,
agrees that the a.. t" , .ral official will have 14 working days to review any updated infonnation prior to submitting this document
for obligation of funds. If there have been significant changes that would affect eligibility a decision as to eligibility and feasibility
will be made within 30 days from the time the applicant provides the necessary infonnation.
IC this in"" approval Cor which alien and/or title search is necessary. the undeBigned applicant agrees thallhe IS-worlcing- I
day loan closing requirement may be exceeded for the purposes of the applicants legal. "'I" ...~ntative c. , ..leting title work and
completing loan closing.
44. COMMENTS AND REQUIREMENTS OF CERTIFYING OFFICIAL
APPROVAL IS SUBJEcr TO TIlE ~UlREMENfS OF 'mE LEuER OF OONDITIONS DATED 1/18/93 and REVISED ON
1/3/95; FmHA INSTRUcrIONS: FURM Fh1HA 1942-13; PROCESSING CHECKLIST: LOAN CLOSING INSTRUcrIONS
ISSUED BY WE OFFICE OF uu~&<AL OJUNSEL: AND, THE AVAIlABILI1Y OF LOAN AND GRANI FUNDS.
45. I HEREB Y CER lit' { that I am unable to obtain sufficient credit elsewhere to finance my actual needs at reasonable rates it tenns,
taking into consideration prevailing private and cooperative rates and tennsin or. neat my community for loans for similar
purposes and periods of time. I agree to use, subject to and in accordance with regulations applicable to the type of aSsistance
indicated above, and request payment of the sum specified herein. I agree to report to FmHA any material adverse changes,
, financial or otherwise that occur prior to loan closing. I certify that no par'of said s~m has been received. I have reviewed the --
loan a,.,.,. val requirements and,~omments associated with this loan request and agree to comply with these provisions. .-_....~~ ~_..
.,..--- - . .-- . --"~ - .-.- ..;~:_. ~..
.V ' . (For SFH & FP loans at eligible tenns only) If this loan is approved, I elect the interest rate to be charged on my FmHA loan to ~, .
.' be the lower of the interest rare in effect at the ti~e of loan a....", .raI or loan closing. If I check "NO". the interest rate charged . .
; :, _ ~ my loan will be the rate olo,......:fied in Item 29 of this fonn. YES NO "
-',",l .
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 Of fraudulent statements or representations, or ma~~ '" '
, or uses a~y false writing or document knowing the same to contain eny ialse, fictitious or fraudulent
. , statement or entry. shall be fined not more than $10,000 or Imprisoned not more than 5 yeal'8, or both...
FAST l..Uu1<AL WATER & SEWER DIS1RIcr
Date . TI\NUARYl ,19~ BY:
H. L. SORREU., JR., aIAIRMAN (Signature of Applicant).
Au:t.STED : ,
Date .JI\NUAUVl , 19.95
VANESSA W. YOUNG, CLERK (Signature of Co-Applicant)'
46. I HEREBY CERTIFY that all of the committee and administrative detenninations and certifications required by Fanners Home I
Administration regulations .......,quisite to providing assistance of the type indicated above have been made and that evidence
thereof is in the docket, and that all requirements of pertinent regulations have been complied with. I hereby approve the above-
described assistance in the amount set forth above, and by this document, subject to the availability of funds, the Government
agrees to advance such amount to the applicant for the purposes of and subject to the availability prescribed by Fanners Home
Administration regulations applicable to this type of assistance.
(Signature of Approving Official)
Date A"t..,,~ led: Title:
47. TO THE APPLICANT: As of this date , this is notice that your application for the above financial assistance
from the Fanners Home Administration has been approved, as indicated above. subject to the availability of funds and other
conditions required by the Fanners Home Administration. If you have any questions contact the County Supervisor.
FORM APPROVED
UNITED STATES DEPARTIIENT OF AGRICULTURE OMB No. 0575-0018
Fonn FmHA 400-1
(Rev. 7.19-83) FARMERS HOME ADMINISTRATION
EQUAL OPPORTUNITY AGREEMENT
Thi s agreement, dated ..J.ANUARY...3......1.9.9.5....................._......................................_..........................................n......_..... between
._.............._..EAS1....C.~..W~'!'.~..!i!..~~...p.!.$.mJg.';I;'........................................._....................................................-........--.' -.
(herein called "Recipient" whether one or more) and the Farmers Home Administration, United States Department o(
Agriculture, pursuant to the rules and regulations of tbe Secretary of Labor (herein called the 'Secretary') issued under the I
authority of Executive Order t 1246, 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 $lO,OOO--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 ~levant 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 tbe 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 wUI 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; rates of payor other forms of compensation; and
selection (or 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 tbis non,Jiscrimination clause.
----
(b) The contractor will, in all solicitations or advertisements for employees placed by or on behaU of the cont~~c.tor, 669
atate that all qIIallfled appllcants will receive consideration for employment without reeard to race, color, re Iglon,
leX or national origin. . .
(c) The contractor will send to each labor union or representative of workers with which he has a collective. bargal~lng
agreement or otber contract or understanding, a notice, to be provided by the Farmers Home Administration,
advisinl the ulli labor union or workers' representative of the contractor's commitments under this a~ent as
required puralllt to uction 202(3)- of Executive Order 11246 of September 24, 1965, and shall post copies of the
notice in conspicuous places available to employees and applic8llts for employment.
(d) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of all rules,
regulations 8Ild releY..t orders of the Secretary of Labor and of ay prior authority which remain in effect.
(e) Th. contractor wil1 furnish all information ...d reports required by Executive Order t 1246 of September 24, 1965,
rwet, replation., ad orders, or pursuant thereto, and will permit access to his books~ records, and accounts by the
Farmer. Home Adlllinistration, Office of Equal Opportunity, U. S. Department of Aerlculture, and the Secretary of
I Labor for ,.rpo... of inv..Uption to a.certain compliance with .uch rules, reculations, and orders.
(0 III the event of the contractor'. noncompliance with the Eqllal Opportunity (Federally Assisted Construction) clause
or with any of the ..id rules, replations, 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 tbe provisions of this Equal Opportunity (Federally Assisted Construction) clause in
every subcontract or purchase order, unless exempted by tbe rules, regulations, or orders of the Secretary of Labor
issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so tbat sucb provisions wi11
be bindine upon each such subcontractor or vendor. The contractor will take such action 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, howeve:r, tbat in the event tbe 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, tbe contractor may request the United States to enter iato such litigation to protect
the interest of the United States.
2. To be bound by tbe 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 to file the required 'Compliance Statement', Form FHA 400-6, witb their bids.
4. Form A0-425, Instructions to Contractors, will accompany the notice of award of the contract.
Bid conditions for all nonexempt Federal and Federally assisted 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 bence eligible for the award.
5. To assist and cooperate actively with the Farmers Home Administration and tbe Secretary in obtaining the compliance
of contractors and subcontractors witb the provisions of the Equal Opportunity Clause and the said rules, regulations, and
orders, to obtain and furnish to the Farmers Home Administration and the Secretary, Form AD-560, Certification of
Nonsegregated Facilities, to submit the Monthly Employment Utilization Report, Form CC-257, as required and such other
infonnation as they may require the ~pervision of such compliance, and to otherwise assist the Fanners Home Administra.
tion in the discharge of it. primary responsibility for securing compliance.
6. To refrain from enteril!l into any contract, or extension or other modification of a contract, subject to such Executive
Order with a contractor debarred from Govemment contracts or federally assisted construction contracts pursuant to Part 11,
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 tbe Farmers Home
I Administration or the Seaetary pursuant to such Subpart D.
7. That if Recipient fails or refuses to comply with these undertakings, the Farmers Home Administration may take any
or all of tbe following actiOfts: (a) cancel, terminate, or suspend said financial assistance in whole or in part; (b) refrain
from extending any furtber assistance under tbe 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 tbe due execution hereof by Recipient on this, tbe date first above written.
Recipient Recipient
(CORPORATE SP;AL) EAST CENTRAL WATF.R & SEWER nT~TRTCT
Name of COlpOrate Recipieat
Attest: By
R.L. SORREll., JR. President
VANESSA W. y~ Secretary
~., " . ....
( P(lsition J (
USDA.FmHA
Form FmHA 4004
(Rev. 8.29.79) ASSURANCE AGREEMENT
(Undcr Title VI, Ci\'il Rishts Act of 1964)
The _...&SI..CENTRAL..1iA.T.ER...&..:;;.~..P.IS1RJS;.h......................... _........ .............................................................. .
(nam~ of Tuip;~nt)
................fQ..OOx....? 5. 9...LJ.kL.I~N.,. ..N~.....f.Z.5..4~........ .... ................................. ......................... .................................. ,
I (addTesr)
("Rtclpient" 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 use 2000d et. seq.) 7 CFR Part 15 and Farmers
Home Administration regulations plomulgated thereunder, 7 C.F.R. 1190/.202. In accordance with that Act and the
regulations ref~rred ~o above, Recipient a~rees .that ,in connection with any program or activity for which Recipient receives
Federal finanCial assistance (as such term IS defined In 7 e.F .R. t 14.:!' 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 or- contract. shall be. and shall be made expressly, subject to the obligations of this agreement and
transferee's assumption thercof.
2. Recipient shall:
(a) Keep such records and submit to the Government such timely, complete, and accurate Information as the
Government may determine to be necessary to ascertain our/my compliance with this agreement and the regulations.
(b) . Permit ac~('ss by authori.7.cd employees of the Farmers Home Administration or thc U.S. Department of
Agriculture durmg normal bUSiness hours to such books, records, accounts and other sources of information and its
facilities as may be pertinent to ascertaining such compliance.
670 (c) Make available to users, participants, beneficiaries and other interested persons 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 Fedeial financial
assistance. so long as such real property is used for the purpose for which the Federal fmancial assistance is made
or for another purpose which affords similar services or~eneflts, or for as long as the Recipient retains ownership or
poIIIlSlon 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 made.
4. Upon any breach or violation of this agreement the Government may, at its option: I
(a) Terminate or refuse to render or continue financial assistance for the aid of the property, facility, project,
service or activity.
(b) Enforce this agreement by suit for specific performance or by any other available remedy under the laws of
the United States or the State in which the breach or violation occurs.
Rights and remedies provided for under this agreement shall be cumulative.
In witness whereof, .~!..f~..~~!E!...~..~.~ DISTRIg.._.._.._...__....._.............._.___.._........... on this
(mime of recipient}
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.
EAST CENTRAL WATER & SEWER DISTRICT
......... ....................-...................................... '.........."f{ e.'api~;;i;.
(S E A L) ..J~ARX...:}.A...l.9.9..2.................................. ._........._......_ .....
Date
Attest: .VANESSA"..W.:..YOUNG.................fiiie. ..CIJJ.\lBMf)H.. ......... ....................................... ................_...... ...
Title
.J~X.;...... ...... ........ ........ ... ......... ........ .... ....... ........ ...... -.. .. -- ...... --.
H.1. SORRELL, JR. Recipient
USDA-FmHA Position J FORM APPROVED
Form FmHA 1910-11 e e OMS NO. 0575-0127
(Rev. 9-89) APPLICANT CERTIFICATION
FEDERAL COLLECTION POLICIES FOR CONSUMER OR COMMERCIAL DEBTS
JANUARY 3, 1995
The Federal Government is authorized by law to take any or all of the following actions in the event your loan payments become delinquent
or you default on your loan: I
Report your name and account information to a credit reporting qency.
Assess interest and penalty charges for the period of time that payment is not made.
Assess charges to cover additional administrative costs incurred by the government to service your account.
Offset amounts to be paid to you under other Federal Prosrams.
Refer your lCCOunt to a private collec:tion qency to collect the amount due.
.' '.-,- ,Foreclosure on any security you have given for the loan. . .....
Pursue legal action to collect through the courts.
, _ Report any written off debt to the Internal R.evenue Service u taxable income.
If you are a current or retired Federal employee, take action to offset your salary, or dvD service retirement benefits.
Debar or suspend you from doing business with the Federal Government either as a participant or principal throughout the
executive branch of the Federal Government for the period ~f ,debarment or .uspe~on., '
,.- - - . ~ -" .
Any or all of these actions may be used to recover any debts owed when it is determined to be in the interest of the Government to do SO"
--. ..-.....- ., .-.. . -..--- ."., .0. _,~.,. ,.
CBRTlFlCA TION: I1we have read and I1we understand the actions the Federal Government may take in the event that I1we fail to meet
my/our scheduled payments in accordance with the terms and conditions of my/our asreement. I1we understand tb8t the above list is not ail
inclusive and that the Federal Government may deem additional actions necessary to collect should I/we l..."u,e delinquent.
(Sipature-llldivkhull(s)) (Date) (Slpature-Indlvldfltll(s)) (Date) I
EAST CENrRAL WATER & SmElt DISTRICT
(SEAL) (NlIIDe of Applic:ant)
BY:
(Sipature or Autborized Entity Official)
CHAIRMAN
A. .~.: (Title of Autborized Entity Official)
P.O. BOX 1119
(Signature of Attestina Official) (Address)
CLERK LILLINGTON. NC 27546
(Title of Attestin, Offidal) (City, State. and Zip Code)
671
Attachment 6. NORTH CAROLINA NORTH CAROLINA
HARNETT COUNTY LEE COUNTY
RES 0 L UTI 0 N
I WHEREAS, Harnett County and Lee county desire to establish
policy as to properties lying along the county line: and
WHEREAS, Harnett county and Lee County have heretofore agreed
on the placement of the county line as indicated on that plat
prepared by Thomas J. Matthews, RLS, in september, 1992, and duly
recorded in both counties: and
WHEREAS, Harnett County and Lee County recognize that in
present day we have more sophisticated equipment and information
in the use of taxation: and
WHEREAS, the Tax Administrators, under the direction of the
Board of commissioners, have come to an agreement for assessing
parcels along the county line in order to uphold fair taxation: and
NOW, THEREFORE, BE IT RESOLVED by Harnett County Tax
Administrator and Lee County Tax Administrator that we do hereby
resolve to tax properties along the county line as follows:
properties lying on the county line and divided by the county
line and where less than 1 acre lies in' one county, the county
containing the most of the parcel shall tax the entire parcel: and
Properties lying on the county line and divided by the county
line and where 1 acre or more lies in one county, each county shall
tax the amount of land lying in the respective county.
This the 1 day of Januarv , 1995.
~(~~ ~ C~
Bob Wicker Nathan Crissman
Tax dministrator Tax Administrator - Lee County
Harnett county
I Attachment 7.
HARNETT COUNTY FINANCE OFFICE DEPARTMENTAL GUIDELINES
SUBJECT: Travel Policy
Table of Contents
POLICY
A.O. Purpose.
B.O. Applicability
C.O. General
ADMINISTRATIVE PROCEDURE$
D.1 General
D.2 Travel Arrangements
D.3. Cash Advances
D.4 Lodging
D.5 Meals
I D.6 Transportation
D.? Reimbursement Procedures
D.8 Other Travel Related Matters
E.O Appendixes
REV. 1.
EFFECTIVE 2/1/95
672
SUBJECT: Travel Policy SECTION NO. A
Purpose
A.O. PURPOSE
A.l. The purpose of this policy is to establish procedures for
authorization of travel by County employees for the purpose
of conducting County business and to establish procedures
for reimbursement of the cost of authorized travel.
SUBJECT: Travel Policy SECTION NO. B I
Applicability
B.O. APPLICABILITY
B.l. All County employees are subject to this policy.
SU P,JECT : Travel Policy SECTION NO. C
General
C.O. GENERAL
C.l. The policy of Harnett County is to reimburse employees
traveling on authorized County business for all reasonable
expenses incurred as a result of travel.
C.2. All travel is contingent upon the availability of funds in
the department's budget. All overnight travel and travel
requiring airline transportation is contingent upon an
approved Travel Authorization and Cash Advance Request form.
(Forms are included in the appendix.)
C.3. This policy amends the previous policy approved on 7/1/88.
C.4. The County Manager shall have the authority to develop
administrative procedures for the implementation of this
policy to insure the initial need for travel is monitored, I
the cost of such travel to the County is held to a reasonable
minimum, and the timely reporting of travel expenses.
C.5. The County Manager shall have the authority to make timely
and necessary administrative adjustments to this policy
which reflect both prudence and applicable IRS regulations.
Any exceptions to this policy must be approved by the County
Manager.
C.G. The County will comply with applicable Fair Labor Standards
Act (FLSA) considerations as appropriate. Current edition of
the Fair Labor Standards are available at the Personnel
Office.
C.7. It is the policy of Harnett County to consider travel time as
work time when requiring non-exempt employees to return to
work site or other Harnett County location to conduct County
business outside of their regular working hours. Examples of
these situations are requiring non-exempt employees on their
off-duty time to attend meetings, seminars, or return to
their work site for other reasons at the request of their
supervisors or department head. All non-exempt employees who
are called back to work will receive mileage reimbursement of
the current rate approved by the Board of Commissioners.
C.8. Employees will not be reimbursed for travel from their home
to regularly scheduled meetings, such as meetings of the
Board of Commissioners, Board of Adjustments, etc. , if
attendance at the meeting is a part of the employee's
regular, routine duties. I
C.9. The Finance Department has designated a staff member to serve
as the contact for County travel policy questions.
The Accounting Supervisor will be available to answer
questions. (910) 893-7557.
SUBJECT: Administrative Procedures SECTION NO. D.l
General
D.O. GENERAL
D.l(a) Normal dai 1 ' '~""'lllting travel does not require advance
written apt: f the supervisor. However, the
department , supervisor should be advised of travel
plans and Ie verbal approval of the plans. Failure
to notity the department head or supervisor o~ ~he travel 673
plans may result in the requesting party recelvlng no,
reimbursement for travel costs. The department.head lS
responsible for ensuring adequate funds are avallable to
reimburse normal daily commuting travel costs.
D.l(b) Travel within the County and all in-state travel must be
approved by the department head or his/her designee(s) in
order to receive reimbursement of expenses. The Travel
Reimbursement form should be used to obtain this approval
and seek expense reimbursement.
D.l(c) All Cash Advance Request forms must be submitted by the
I traveling employee to the Finance Office by the invoice due
date.
D.1(d) Emergency travel needs will be approved before travel
takes place if possible, on the day of travel or as soon
as possible upon the completion of the trip. The nature
of the emergency travel requirement should be fully
explained on the Travel Authorization and Cash Advance
Request form.
SUBJECT: Travel Arrangements SECTION NO. D.2
D.2. TRAVEL ARRANGEMENTS/PROCEDURES
D.2 (a) Each department is allowed to make appropriate and
authorized travel arrangements directly with the airline
or travel agent of their choice. It is incumbent upon
the department head to ensure that the most reasonable
means of transportation is used to enable the County
to receive the lowest airfare available. Hotel
accommodations can also be made directly with the hotel
or through a travel agent to obtain the lowest possible
cost. Hotel accommodations prearranged by conference/
training sponsors or professional associations can be used.
Convention lodging rates or a lessor rate at another hotel
will be reimbursed.
D.2(b) Transportation tickets can be delivered to employee's
office or mailed to employee's home address depending on
I preference.
D.2(c) Airlines or travel agents should be contacted for travel
arrangements only after the required approvals are obtained
on the Travel Authorization and Cash Advance Request form.
Once the Finance Department receives the approved request,
the attached Travel Reimbursement Report will be returned
to the traveling employee. When the employee receives the
Report, he/she may at that point contact the airline or
travel agent of their choice to schedule the flight.
SUBJECT: Administrative Procedures SECTION NO. D.3
Cash Advances
D.3. CASH ADVANCES
D.3 (a) Cash advances must be requested on the Travel Authorization
and Cash Advance Request form when requesting authorization
for trip. The travel form package must be submitted intact
to Finance by the invoice due date. Advance checks will
be issued by Finance to the traveler two days prior to the
beginning of the trip. The amount of the check cannot
exceed the estimated costs of the trip.
D.3 (b) Advance travel checks will be made payable to and delivered
by the Finance Office to the person who is to make the
trip. The traveler will sign a receipt for the check. The
Finance Office shall maintain a log of advances and post
issuances and repayments for the purposes of control.
I D.3 (c) If, after a travel advance check has been issued, the
scheduled trip is not made, the employee shall immediately
notify the department head who in turn will notify the
Finance Office. When travel is postponed for more than one
(1) week or canceled, the travel advance check will be
returned immediately to the Finance Office.
D.3 (d) Any unspent travel advance moneys must be returned within
five (5 ) work days after completion of trip along with the
Travel Reimbursement Report documenting the actual
expenditures. Cash refunds must be personally delivered to
the Finance Department. Rp funds by personal check or money
order should be made payable to Harnett County and can be
sent to Finance via interoffice mail. These refunds should
be sent or delivered to the Accounting Supervisor.
674 D.3(e) If the required receipts and/or advanced cash is not turned
in prior to the next payroll date, the total of funds
advanced will be deducted from the employee's paycheck.
SUBJECT: Administrative Procedures SECTION NO. D.4
Lodging
D.4 . Lodging
D.4(a) Hotel/lodging reservations are to be arranged by the I
traveling employee or by utilizing accommodations
prearranged by conference/training sponsors or
professional associations.
D.4(b) Lodging expenses will be reimbursed only for meetings,
seminars, or conferences which are two days or longer and
are held over held over SO miles - one way - from the
County office.
D.4(c) Lodging expenses will be reimbursed at actual cost of
rooms provided that the employee will seek reasonably
priced lodging. County travelers sharing a room with a
non-County employee will be reimbursed at the single
occupancy rate only. For accommodations other than for
specific events, the limits are:
In State $50.00 plus tax
Out of State 80.00 plus tax
The Finance Officer may waive these limits for high cost
areas. Adequate justification must be submitted to the
Finance Officer in advance using the "Request for Excess
Lodging Allowance" form. (Form is included in the
Appendix. )
D.4(d) A detailed receipt is required for reimbursement of
lodging expenses.
D.4(e) No reimbursement is authorized for in-room movies,
valet charges, in-room bar charges, or other non-essential
needs. I
D.4(f) Room Service charges for food are allowable to the extent
that the amount requested for reimbursement does not exceed
the allowable meal costs associated with that particular
meal.
D.4(g) If required, hotel reservations should be guaranteed with
the employee's personal credit card or personal check.
This amount should be included in the travel advance, if
requested, to prevent charges billed to an employee's
credit card.
SUBJECT: Administrative Procedures SECTION NO. D.5
Meals
D.5. Meals
D.5(a) In accordance with IRS Regulations, the County will not
reimburse the cost of meals for one-day travel unless the
meal is part of the program or function being attended.
D.5(b) Meal expenses will not be reimbursed for out of County
travel during regular, routine work days. This includes
transportation workers, jail personnel transporting
inmates, tax appraisers, etc.
D.5(c) Reimbursement will not be made for meals for employees
"staying over" for regularly scheduled evening meetings I
such as meetings of the Board of Commissioners, Board
of Adjustment meetings, etc.
D.5(d) Reimbursement for meals (including gratuities) for trips
requiring overnight travel is limited to the total actual
eXDenses incurred, not to exceed the maximum daily or
individual allowance for part of a day, as set forth
below. Individual meal expenses are not limited to
the per meal allowance amounts if the total amount actually
expended does not exceed the total daily allowance. A
partial day reimbursement is applicable if the travel
covers only part of the day or if meals are included in
conferences, airt 'lne transportation or are otherwise not
applicable. !, 1er for overnight trips to qualify for
reimbursement \ breakfast: each trip must originate
---
675
before 6 a.m.; (b) lunch: each trip must originate before
11 a.m. and return trip must terminate after 2 p.m.;
(c) dinner: each trip must originate before 4
p.m. and return trip must terminate after 8 p.m.
Meal Allowance (includina tax & aratuities)
Breakfast $ 5.00
Lunch 8.00
Dinner 15.00
I TOTAL $28.00
Receipts for meals are required for reimbursement at the
above rates.
The current reimbursement rate established by the Internal
Revenue Service on March 12, 1993 for meals is $28.00 per
day. Any amount received above this limit is considered
taxable income.
D.5(e) Any meal in a conference or convention program that exceeds
the meal allowance shall be fully reimbursed if documented
by conference program literature or a receipt.
SUBJECT: Administrative Procedures SECTION NO. D.6
Transportation
D.6. Transportation
D.6(a) County employees are encouraged to use County-owned
vehicles when available. When travel is authorized
by personal vehicle, the prevailing IRS rate per
mile is paid as full reimbursement for such
transportation costs. Mileage reimbursement is
limited to the shorter of the distance between
(1) office and trip location or (2) home and trip
location when going directly to trip location. The
Board of Commissioners is allowed to make periodic
I adjustments for auto mileage rates in accordance with
current IRS regulations. Reimbursement for use of a
personal vehicle including costs of additional meals and
lodging resulting from such use of the personal vehicle
shall not exceed the otherwise applicable air fare for
such travel by the employee. The current reimbursement
rate is 29 cents per mile. The current IRS rate per mile
is 29 cents.
D.6(b) The use of a personal vehicle will normally be confined
to destination within the State or in those neighboring
states where it is more advisable to travel by car because
of expediency and destination accessibility. Travel by
personal vehicle outside of North Carolina is subject to
Travel Authorization approval requirements.
D.6(c) County vehicles may be used for any authorized travel. The
requesting party must obey all laws of the jurisdiction in
which the vehicle is being operated. The vehicle will be
used for the purpose of conducting County business only.
A minimal amount of personal use, such as driving the
vehicle to and from a meal while on County business, is
allowed.
D.6(d) Non-County employees may not accompany County employees in
County owned vehicles. However, individuals associated
with County operations listed below are exempt from this
regulation.
(i) Human Services Department client assistance
programs.
I (ii) Public Safety Department Operations transporting
suspects, arrestees and detention residents.
(iii) Emergency Medical Services Transport Operations.
(iiii) Emergency Management/Fire Marshall Operations.
(iiiii) Other County operations re'!uiring occasional
transport of non-County st,lff, i.e. construction
project's personnel, other government agency
officials traveling with County staff,
volunteers, etc.
D.6(e) A rental vehicle may be requested when it is determined
that no other mode of transportation is as economical or
practical. A rental vehicle should be used for business
purposes only except for driving to and from meals.
676
D.6 (f) Vehicle rentals, when authorized and necessary, or for
emergency or unanticipated situations, can be arranged by
the traveling employee. In these instances, the traveler
should request the lowest rental rate possible. Vehicle
rental expense incurred must be paid by the traveler and
is reimbursed upon completion of trip. Rental receipts
are required to be submitted with the travel reimbursement
report.
D.6(g) When renting vehicles, the traveler should not purchase I
any additional insurance waiver (collision, theft,
vandalism, etc. ) Any accidents or damages to rental
car or other vehicles, persons or properties caused by
rental vehicle operated by County traveler, is covered
under the County's insurance program.
D.6 (h) Actual expenses are reimbursed for public transportation
and personal vehicle use in connection with travel on
County business. Employees are expected to use the most
reasonable and economical form of transportation available.
Receipts should be obtained when possible for taxi,
parking, and limousine expenses and submitted on Travel
Reimbursement Report.
Air and rail transportation expenses are reimbursed at
coach and pullman rail rates. County staff are not
authorized to charge travel related costs to the County.
D.6(i) Approval of Saturday night stay overs unrelated to regular
County business will be considered on an individual basis
and would require a net economic benefit to the County
(resulting in less expense to the County) due to the
lower air fare savings as compared to the normal
applicable air fare.
D.6(j) Parking expenses will be reimbursed at the rate charged,
with a receipt.
SUBJECT: Administrative Procedures SECTION NO. D.7
Reimbursement Procedures I
D.7. Reimbursement
D.7(a) After completion of the trip, employees should complete the
Travel Reimbursement Report documenting the actual costs
incurred with required receipts attached and submit it to
Finance for reimbursement. For normal daily commuting, the
required approvals must be received before submitting to
Finance. For overnight travel, no additional approvals are
necessary. However, the Finance Department will obtain
approval from the appropriate County official if the actual
reported costs are materially inconsistent with estimated
costs previously approved on the Travel Authorization and
Cash Advance Request form. For non-cash advanced trips,
the report is due within thirty days (30) after completion
of the trip. Reports are due within five (5 ) working days
for trips involving cash advances.
D.7(b) Each County traveler is required to submit a Travel
Reimbursement Report to document their personal
expenditures. The combining of two or more travelers
expenses in one report is not permitted.
D.7{c) The Finance Department will determine that the
reimbursement request has been properly approved, is
mathematically correct, the requested amounts agree to
submitted receipts and are within the limits of this
policy. I
D.7(d) A requesting party submitting a falsified Travel
Reimbursement Report will be subj ect to disciplinary action
and possible criminal prosecution. An authorizing party
who approves a Travel Reimbursement Report which they know
to be false will be subject to disciplinary action or
possible criminal prosecution.
D.7(e) Reports of travel expenses incurred during the thirty day
reporting period which totals less than ten dollars ($10)
can be deferred to subsequent reporting periods and
reported when the reimbursement equals or exceeds this
amount.
SECTION NO. D.8 677
SUBJECT: Administrative Procedures
Other Travel Related Matters
D.8 OTHER TRAVEL RELATED MATTERS
D.8(a) County travelers are allowed to convert cash advances or
personal moneys into tr~velers cheques. Any ~ost
associated with purchas1ng the cheques are re1mbursable.
D.8(b) Reimbursement of out-of-county travel costs by appointed
I members of Harnett County Government Advisory Boards and
Commissions are allowable. However, the members are
subject to the same travel regulations as other County
employees. Also, their travel must be approved in advance.
D.8 (c) The following tips/gratuities are only reimbursable to the
following individuals up to maximum dollar amount listed:
Taxi/cab driver - $2 per trip
Parking attendant - $2 per assist
Hotel doorman - $2 per assist
Baggage master - $2 per assist
Hotel limo driver - $2 per trip
D.8(d) Any expenses associated with the purchase of alcoholic
beverages are not reimbursable.
D.8(e) A personal "safe arrival" telephone call is authorized. An
additional telephone call is permissible in the event of an
itinerary change or after a three-day period of absence.
The maximum allowable reimbursement is limited to $4.00 per
telephone call. Any additional phone charges must be fully
detailed and business related. All long-distance calls are
to be documented on the Travel Reimbursement Report. Hotel
telephone "access" charges will be reimbursed for all
calls.
D.8(f) Expenses incurred by the Board of Commissioners, County
Manager, and department heads hosting special conferences
or meetings conducted exclusively for transacting County
business incidental to the event for which travel was
I authorized, may be reimbursed and should be reported on the
Travel Reimbursement Report under "Other Expenses"
category. Supporting documentation for such expenses must
include validated receipts and must list the date and
nature of the conference or meeting.
Appendixes
E.O. Appendixes
1. Travel Authorization and Cash Advance Request Form
2 . Travel Expenses Form
COUNTY OF HARNr.~ ~
TRAVEL AUTHORIZATION AND CASH ADVANCE REQUEST
TO BE COMPLETED AND SUBMITTED AT LEAST 7 DAYS PRIOR TO IRA VEL
Date of This Request Budget Account No.
Employee Name I
Title 'Department
Destination Travel Date(s)
I From: Month Day Year ITo: Month Day Year
Total Estimated Expense I
Funds Requested In Advance
$ .Registration $ Transportation
Yes No
$ Lodging $
$ Meals $ ,TOTAL
Amount $
Purpose of Travel I
678
Are Funds Included in Current Budget for I Mode of Transportation
This Travel? County-owned Vehicle
Yes No
Private Vehicle
Overnight Accommodations Required? Air
Yes No
, 'Other
Name of Hotel/Motel I
Government Discount Yes No $ COST
Rate Per Night/Person $
Comments, Reviews:
Approved If settlement has not been made
on the above advance within 15
Department Head Date days after completion of travel,
I authorize the above amount to
Appropriation Available be deducted from my next paycheck.
Signed:
Finance Officer Date Signature of Traveler/Date
EMPLOYEE TRAVEL EXPENSES
PAGE_OF_
SOCIAL SECURITY NO. COMPLETE PAYROLL NAME TELEPHONE NUMBER
DATE METER READING REASON FOR BUSINESS OTHER EXPENSES LODGING EMPLOYEE MEALS
MID MILES START . END TRIP AND DESTINATION DECRIPTION AMOUNT AMOUNT BRKFST LUNCH DINNER
I
1
l I I
~
~
]
I J
i I I I
, I
I I I
TOTAL
MILES_ MILES X =$ TOTAL(1) TOTAL(2) TOTAL(3)
..- "''''''.''.-.'-.-'
ACCOUNT NUMBER TOTAL 1-3=
TRAVEL ADVANCE =
BALANCE DUE I
COUNTY EMPLOYEE =
CERTIFIED AS CORRECT I APPROVAL FOR PAYMENT
i' ^...........:SSOR MlE AUDITOR
679
Attachment 8.
FROM: Christopher L.Carr, County Tax Attorney
RE: MONTHLY REPORT TO COMMISSIONERS AND STATEMENT OF FEES AND CHARGES
FOR THE MONTH OF December, 1994
I 1. Tax Suits Dismissed:
NAME SUIT NO. *AMOUNT COL. * * COURT ATTORNEY
COSTS FEES
Anderson Creek Township
Cayton, Sheila D. 94 CvD 1685 587.27 231. 33 175.00
Knight, Annie Marie 94 CvD 1188 1,698.55 306.62 250.00
Averasboro Township
Blue, Norman 89 CvD 1390 844.26 616.56 291. 82
Faison, Virginia No CvD 837.98 75.00 75.00
Groves, David 94 CvD 0750 1,132.19 328.24 250.00
McKethan, Aaron No CvD 1,214.12 150.00 150.00
Barbecue Townshi~
McNeill, Grace No CvD 375.66 75.00 75.00
Riddle, Joseph No CvD 197.02 75.00 75.00
Black River Township
Fowler, Malcolm 94 CvD 1688 2,985.61 311. 62 250.00
Mitchell , James 93 CvD 1750 2,797.68 511.66 450.00
Buckhorn Township
Moore, Jesse No CvD 810.88 175.00 175.00
Duke Township
Holland, Lalon 93 cvD 0934 2,810.26 230.52 175.00
Grove Township
I Morgan, Pauline 94 CvD 0971 1,852.42 361. 62 300.00
Johnsonville Township
Adams, Dalphine 94 CvD 1639 2,554.25 261.66 200.00
Gaines, David L. 93 CvD 0138 2,905.80 311. 08 250.00
Speer, Joseph 93 cvD 0022 716.99 410.02 350.00
Taylor, Sallie 94 cvD 1175 953.73 320.56 250.00
Lillington Township
Morris, Lewis . No CvD 412.23 75.09 75.00
Neill's Creek Township
Stewart, James A. 93 CvD 1065 1,382.75 508.12 450.00
Stewart's Creek Township
Ingram, George No CvD 924.33 75.00 75.00
Lee, Donnie 93 cvD 0259 991.75 205.00 150.00
McDonald, Henry 94 cvD 0673 1,511.91 361. 62 300.00
McNeill, Cleveland 94 cvD 0857 1,829.67 315.67 250.00
~pper Little River Township
Ray, H. Michael No CvD 6,914.08 75.00 75.00
Subtotal $39,241.39 $6,366.90 $5,116.82
NOTE: * Total collected includes taxes, interest and Court costs.
** Court costs includes attorney fees allowed by Court (where
suit has been commenced) .
2. Advanced Costs:
Date Explanation Charqe.
12-07-94 Lillington Postmaster - service fee
(Adams/Campbell) 15.06
12-08-94 Wake County Sheriff
I (Cayton) 5.00
12-15-94 Wake County Sheriff
(Sprangle) 5.00
12-15-94 Lillington Postmaster - service fee
(Hardrick) 5.02
12-27-94 Lillington Postmaster - service fee
(Moore) 10.04
TOTAL ADVANCED COSTS $40.12
3. New Suits Started during the month of December, 1994
Averasboro Township
Hardrick, William Alfonza
680 Barbecue Township
Moore, William Curtis
4. Paralegal Fees - Other Services
11-14-94 Telephone call to Mr. Fike - he never
received his tax bills and they would corne
back to the tax office stamped "NO SUCH
ADDRESS" . Someone wrote in Spring Lake
instead of Fayetteville on the deed when
it was recorded. Pulled copy of deed
from Harnett County Registry; Telephone
call to Mr. Fike with explanation and
telephone call to Cathy at tax office I
to change listing address and telephone 17.50
number. (0.5 hrs @ $35.00/hr.)
11-18-94 Telephone calls to listed owner; Found that
property deeds had not been recorded in
Harnett County, only to Cumberland County;
Obtained copy of unrecorded division map
from attorney who did the closing; Advised
Land Records Department and gave them copies
of deeds and map to change two listings to
the correct owner Martha Dale West.
(2.0 hrs @ $35.00/hr.) 70.00
12-15-94 Telephone call to owner; Telephone conference
with previous owner and closing attorney;
Telephone call to Land Records and research
regarding tax parcel splits; Telephone call to
owner; Telephone call to bank regarding tax
parcel numbers for escrow; Received payment
from bank to clear up delinquent taxes and
confirm tax parcel number for further billing;
Telephone call to Henry Pleasant's office to
request proper billing on deferred land taxes
to tax office. (2.2 hrs @ $35.00/hr.) 77.00
TOTAL PARALEGAL FEES - OTHER SERVICES $164.50
SUMMARY OF CHARGES & FEES
Attorney's fees - Tax Suits $5,116.82
Paralegal fees - Other Services $164.50
Advanced Costs 40.12
BALANCE $5,321. 44
Attachment 9. I
BUIlACT8 DOli IIIIIU'rB8 OP BOAJU) OP COHKIS8I... '..~.:M" OP
DIUIBft COUll'l'Y, 8IftIHG AI DB CJOVBJUIIHG BODY OP
BAS'1' CD'l'llAL _'1'D AIm 8BWBR DI8DIC!' OP BARIIB'l"1' COw~
The Board of Commissioners of the County of Harnett, sitting as the governing
body of the East Central Vater and Sewer District of Harnett County, convened in
a special setting during its meeting held on January 3, 1995 at 9:00 0' clock a.m.
in the Harnett County Office Building, 102 East Front Street, Lillington, North
Carolina.
Board Kembers present were: H.L. Sorrell, Jr., (Chairman), Walt Titchener,
Beatrice Bailey Hill, Dan B. Andrews and Joseph T. Bowden. No members were
absent.
. . . . . .
Commissioner Hill presented the
.
following resolution and moved 'that it be adopted:
WHEREAS, 'the bond order hereinafter described has taken
effect and the Board of Commissioners of the County of Harnett, I
sitting as the gov,rning body of East Central Water and Sewer
District of Harnett County, desires to borrow money for the
purpose for which bonds are authorized to be issued by said bond
order in anticipation of the receipt of the proceeds of the sale
of said bonds as hereinafter provided; NOW, ...t'u'!,~~FORE ,
BB IT RESOLVED by 'the Board of Commissioners of 'the
County of Harnett, sitting as 'the governing body of East Central
Water and Sewer District of Harnett Count.y (the "Issuer"), as
follows:
. ~: ,~;', ..,,'(~ . ',' ;.
681
(1) The sum of $3,608,000 will be borrowed by the
Issuer in anticipation of the receipt of a $3,608,000 portion of
the proceeds of the sale of bonds authorized to be issued by the
water bond order, adopted by the Board of commissioners of the
county of Barnett, sitting as the governing body of the Issuer,
on February 19, 1990, for the purpose for which said bonds are
authorized to be issued. Negotiable notes, each designated "Water
I Bond Anticipation Note," shall be issued for said sum so
borrowed.
(2) Said notes shall be dated January 18, 1995, shall
be payable October 11, 1995 and shall bear interest from their
date at a rate which shall not exceed eight per centum (8') per
annum. Such interest shall be payable at the maturity of the
said notes. Each of said notes shall be signed by the Chairman
4
of the governing body of the Issuer and the Clerk of the Issuer
and the seal of the Issuer shall be affixed to each of said
notes.
(3) The power to fix the rate of interest to be borne
by said notes and to determine the denomination or denominations
of the notes and the place of payment of the notes is hereby
delegated to the Chairman of the governing body of the Issuer and
Clerk of the Issuer who are hereby authorized and directed to
cause said notes to be prepared and to execute said notes when
they shall have been sold by the Local Government commission of
North Carolina.
I (4) The Chairman of the governing body of the Issuer
and Clerk of the Issuer are hereby authorized to make application
to the Local Gova..~ent Commission of North Carolina for its
arr...oval of said notes in the manner prescribed by The Local
Gove....~ent Finance Act. Said Local Gove...._ent Commission is
hereby requested to sell the notes in the manner prescribed by
said Act. Said notes, when they shall have been sold by said
Commission in the manner provided by law and when they shall have
been executed in the manner prescribed by this resolution, shall
be turned over to the State Treasurer of the State of North
Carolina for delivery to the purchasers to whom they may be sold
by said commission.
(5) The Issuer covenants to comply with the provisions
4
of the Internal Revenue Code of 1986, as amended (the "Code"), to
the extent required to preserve the exclusion from gross income
of interest on the notes for Federal income tax purposes.
(6) The Issuer hereby represents that (i) the proposed
I notes are not private activity bonds as defined in the Code and
(ii) the Issuer, together with any subordinate entities or any
entities which issue obligations on behalf of the Issuer,
reasonably expects that it will not issue more than $10,000,000
tax-ex..pt obligations (other than private activity bonds except
for qualified 501(0)(3) bonds) during the current calendar year.
In addition, the Issuer hereby desiqnates the above-mentioned
notes as "qualified tax-exempt obligations" for the purposes of
section 265(b) (3) of the Code.
-3-
682 (7) The power to make any election on behalf of the
Issuer with respect to the arbitrage rebate provisions of the
Code applicable to the notes is hereby delegated to the Chairman
of the governing body and Finance Officer of the Issuer.
The motion having been duly seconded and the resolution
having been considered, it was adopted by the following vote:
AYES: 5
NAYS: 0 I
* * * * *
Attachment 10.
E_.~~CTS FROM MI~w.ES OF BOARD OF COKKISSIONERS OF
IIARL.:..... co..~..r, SITTING AS ..~.:. G""tQRNING BODY OF
SO...:a C.:...~..~.AL WATER AND snn DISTRICT OF IlARHETT COw..~. Y
The Board of Commissioners of the County of Harnett, sitting as the governing
body of the South Central Water and Sewer District of Harnett County, convened
in a special setting during its meeting held on January 3, 1995 at 9:00 o'clock
a.m. in the Harnett County Office Building, 102 East Front Street, Li11ington,
North Carolina.
Board Members present were: H.L. Sorrell, Jr. , (Chairman), Walt Titchener,
Beatrice Bailey Hill, Dan B. Andrews and Joseph T. Bowden. No members were
absent.
* * * * * * I
Commissioner Hill presented the
.
following resolution and moved that it be adopted:
WHEREAS, the bond order hereinafter described has taken
effect and the Board of Commissioners of the County of Harnett,
sitting as the governing body of South Central Water and Sewer
District of Harnett County, desires to borrow money for the
purpose for which bonds are authorized to be issued by said bond
order in anticipation of the receipt of the proce~ds of the sale
of said bonds as hereinafter provided; NOW, THEREFORE,
BE IT RESOLVED by the Board of commissioners of the
County of Harnett, sitting as the governing body of South Central
Water and Sewer District of Harnett County (the "Issuer"), as
follows:
( 1) The sum of $700,000 will be borrowed by the Issuer
in anticipation of the receipt of a $700,000 portion of the I
proceeds of the sale of bonds authorized to be issued by the
water bond order, adopted by the Board of Commissioners of the
County of Harnett, sitting as the governing body of the Issuer,
on December 6, 1993, for the purpose for which said bonds are
authorized to be issued. Negotiable notes, each designated "Water
Bond Anticipation Note," shall be issued for said sum so
borrowed.
(2) Said notes sln 11 be dated January 18, 1995, shall
be payable January 17, 1Q'')(:-\nd shall bear interest from their
683
date at a rate which shall not exceed eight per centum (8%) per
annum. Such interest shall be payable at the maturity of the
said notes. Each of said notes shall be signed by the Chairman
of the governing body ~f the Issuer and the Clerk of the Issuer
and the seal of the Issuer shall be affixed to each of said
notes.
I (3) The power to fix the rate of interest to be borne
by .aid not.. and to determine the denomination or denominations
of the notes and the place of payment of the notes is hereby
delegated to the Chairman of the governing body of the Issuer and
Clerk of the Issuer who are hereby authorized and directed to
cause said notes to be prepared and to execute said notes when
they shall have been sold by the Local Government commission of
North Carolina.
(4) The Chairman of the governing body of the Issuer
and Clerk of the Issuer are hereby authorized to make application
to the Local Government C~.,".,ission of North Carolina for its
approval of said notes in the manner prescribed by The Local
Government Finance Act. Said Local Government Commission is
hereby requested to sell the notes in the manner prescribed by
said Act. Said notes, when they shall have been sold by said
Commission in the manner provided by law and when they shall have
been executed in the manner prescribed by this resolution, shall
be turned over to the State Treasurer of the State of North
I Carolina for delivery to the purchasers to whom they may be sold
by said commission.
(5) The Issuer covenants to comply with the provisions
of the Internal Revenue Code of 1986, as amended (the "Code"), to
the extent required to preserve the exclusion from gross income
of interest on the notes for Federal income tax purposes.
(6) The Issuer hereby represents that ( i) the proposed
notes are not private activity bonds as defined in the Code and
(ii) the Issuer, together with any subordinate entities or any
entities which issue obligations on behalf of the Issuer,
reasonably expects that it will not issue more than $10,000,000
tax-exempt obligations (other than private activity bonds except
for qualified 501(c) (3) bonds) during the current calendar year.
In addition, the Issuer hereby designates the above-mentioned
notes as "qualified tax-exempt 'ligations" for the purposes of
section 265(b) (3) of the Code.
(7) The power to make any election on behalf of the
I Issuer with respect to the arbitrage rebate provisions of the
Code applicable to the notes is hereby delegated to the Chairman
of the governing body and Finance Officer of the Issuer.
The motion having been duly seconded and the resolution
having been considered, it was adopted by the following vote:
AYES: 5
NAYS: 0
* * * * *
--