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HomeMy WebLinkAbout06041990 ------ -~-- -'--' ~---- 327 HARNETT COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 4, 1990 I The Harnett County Board of Commissioners met in regular session on Monday, June 4, 1990, in the County Office Building, Lillington, North Carolina, with the following members present: Rudy Collins, Bill Shaw, Mack Reid Hudson, Mayo Smith, and Chairman Lloyd G. Stewart presiding. Others present were: Dallas H. Pope, County Manager; W. Glenn Johnson, County Attorney; Vanessa W. Young, Clerk to the Board; and Kay S. Blanchard, Recording Secretary. CALL TO ORDER Chairman Stewart called the meeting to order at 9 a.m. INVOCATION Commissioner Collins offered the invocation. MINUTES APPROVED Commissioner Smith moved for the approval of the minutes of the regular meeting, May 21, 1990. Commissioner Collins seconded the motion and it passed with a unanimous vote. MINUTES AMENDED Commissioner Hudson moved that the motion to approve the regular Board meeting minutes for May 21, 1990, be amended to reflect a change of address of Mr. Johnnie Chalmers, from Spring Lake to Cameron, as it relates to the minute items involving public hearing concerning W.S. Wellons zoning district change application. Commissioner Shaw seconded the motion and it passed with a unanimous vote. CERTIFICATE AWARDED Chairman Stewart presented an Award Certificate to Pat McDonald, Food Stamp TO FOOD STAMP STAFF Supervisor and the Food Stamp Program Staff for having a .28% error rate in the Food Stamp Program in Harnett County. Harnett County's Food Stamp Program error rate is the third best among the 30 largest counties in North Carolina. CENTRAL CAROLINA W. Glenn Johnson, County Attorney, briefed the Board on request from the TIRE DISPOSAL - Carolina Lakes Property Owners Association and several other property owners CAROLINA LAKES RESI- in the Barbecue Township to have a rehearing before the Board of Adjustments DENTS REQUEST FOR and the Board of Commissioners concerning the issuance of a conditional use I REHEARING permit to Central Carolina Tire Disposal for a tire monofill. Mr. Johnson stated that the correct procedure would be for the matter to be presented to the Board of Adjustments first, but due to there being a number of residents (approximately 100) and their attorney present, requested that their attorney be granted permission to give a brief presentation to the Board. Mr. Stephen Brown, Attorney, briefed the Board that it was his belief that mistakes were made in the process of issuance of the conditional use permit for Central Carolina Tire Disposal for a tire monofill, possibly by the owner, and asked that the citizens be given the opportunity to be heard concerning the matter. The Board took no action, and advised Mr. Brown to contact the Board of Adjustments. PUBLIC HEARING ON Chairman Stewart called to order a public hearing on Angier's request to ANGIER - BLACK RIVER become a part of Black River Fire District. W. Glenn Johnson, County FIRE DISTRICT Attorney, briefed the group that the purpose of the public hearing was to obtain public comments concerning the request. Chairman Stewart opened the meeting for public comments. The following citizens provided comments: l. Ray Pleasant, Town of Angier Attorney - for 2. Spencer Teffeteller, Black River Fire Chief - for Chairman Stewart closed the public hearing concerning request from Angier to become part of Black River Fire District. RESOLUTION FROM W. Glenn Johnson, County Attorney, presented for the Board's information, a TOWN OF ANGIER resolution adopted by the Town of Angier Board of Commissioners on May 1, RE: FIRE DISTRICT 1990, concerning fire protection for the Town of Angier. The resolution is I copied in full at the end of these minutes dated June 4, 1990, as document no. l. CONSIDERATION OF W. Glenn Johnson, County Attorney, presented for the Board's consideration a RESOLUTION RE: resolution concerning the Town of Angier's request to become part of the Black BLACK RIVER FIRE River Fire District. Commissioner Smith moved for the adoption of the DISTRICT resolution. Commissioner Collins seconded the motion and it passed with a - unanimous vote. The resolution is copied in full at the end of these minutes dated June 4, 1990, as document no. 2. RESO LOTI ON RE: W. Glenn Johnson, County Attorney, presented for the Board's consideration a TRANSFER OF PROPERTY Resolution Authorizing Transfer of Property to Southwest Water and Sewer SOUTHWEST W & S District. Commissioner Shaw moved for the adoption of the resolution. Commissioner Hudson seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated June 4, 1990, as document no. 3. ____________n__ 328 PETITION FROM RESIDENTS Dallas H. Pope, County Manager, presented to the Board a petition from IN NORTHWEST AREA IN property owners in the Northwest area of Harnett County in support of a SUPPORT OF PROPOSED proposed special service district for fire protection. The petition contains FIRE DISTRICT 400 plus signatures. RESOLUTION RE: Carla Stephens, Planning Director, presented for consideration a resolution BUILDING INSPECTIONS - concerning building inspections for the extra-territorial jurisdiction of BROADWAY EJT Broadway. Commissioner Hudson moved for the adoption of the resolution. I Commissioner Shaw seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated June 4, 1990, as document no. 4. SUBDIVISION PLAT Carla Stephens, Planning Director, presented for consideration a subdivision . - FOREST RIDGE SUBDIVISION plat for Forest Ridge Subdivision, 25 lots owned by Odell smith and located in Anderson Creek Township on Hwy. 27, RA-30 Zoning District. Commissioner Shaw moved for the approval of the subdivision plat. Commissioner Collins seconded the motion and it passed with a unanimous vote. BUDOET AMENDMENTS Carla Stephens, Planning Director, requested the following budget amendment for the Planning Department: Code 10-7200-003 Salaries & Wages, part-time 252. increase 10-7200-005 F.I.C.A Tax Expense 20. increase Revenue: 10-3990-000 Fund Balance Appropriated 272. increase Commissioner Collins moved for the approval of the budget amendment. Commissioner Shaw seconded the motion and it passed with a unanimous vote. Carla Stephens, Planning Director, requested the following budget amendment for the Inspections Department: Code 10-5600-014 Travel & Meetings 1,000. increase Revenue: 10-3990-000 Fund Balance Appropriated 1,000. increase Commissioner Collins moved for the approval of the budget amendment. Commissioner Shaw seconded the motion and it passed with a unanimous vote. Rodney M. Tart, Public Utilities Director, requested the following budget amendment for Public Utilities (South Central Enterprise): I Code 30-9300-002 Salaries & Wages 1,200. increase 30-9300-005 FICA Tax Expense 92. increase 30-9300-006 Group Insurance Expense 150. increase 30-9300-007 Retirement Expense 72. increase 30-9300-004 Professional Fees 1,514. decrease Commissioner Shaw moved for the approval of the budget amendment. Commissioner Smith seconded the motion and it passed with a unanimous vote. Rodney M. Tart, Public Utilities Director, requested the following budget amendment for Public Utilities (Water): Code 30-9100-004 Professional Services 4,000. increase 30-9100-120 Capital Reserve 4,000. decrease Commissioner Shaw moved for the approval of the budget amendment. Commissioner Hudson seconded the motion and it passed with a unanimous vote. Rodney M. Tart, Public Utilities Director, requested the following budget amendment for Public Utilities (SCADA): Code 60-9017-020 Legal & Administration 3,000. increase 60-9017-080 Contingency 3,000. decrease Commissioner Collins moved for the approval of the budget amendment. Commissioner Smith seconded the motion and it passed with a unanimous vote. Larry C. Knott, Chief Deputy, Sheriff's Department, requested the following budget amendment for the Jail: Code 10-5120-046 Medical Supplies & Drugs 6,000. increase I Revenue: 10-3990-000 Fund Balance 6,000. increase Commissioner Collins moved for the approval of the budget amendment. commissioner Shaw seconded the motion and it passed with a unanimous vote. Dallas H. Pope, County Manager, requested the following budget amendment for Governing Body: Code 10-4100-135 Other Appropriations 12,784. increase Revenue: 10-3990-000 Fund Balance Appropriated 12,784. increase Commissioner Hudson moved for the approval of the budget amendment. Commissioner Smith seconded the motion and it passed with a unanimous vote. 329 REPORTS Reports for the month of May were filed with the Board from the following departments: Building Inspections, Emergency Medical Services, Veterans Service, Sheriff's Department, and the Tax Department. The Tax Attorney's report was also filed with the Board and is copied in full at the end of these minutes dated June 4, 1990, as document no. 5. I TAX REFUNDS Bobby Wicker, Tax Administrator, requested the following Tax Refunds: 1. Dunn Housing Associates, P. O. Box 3054, Greensboro, NC $8,870.62 2. Michael & Tammy Surles, Rt. 6, Box 45-3, Fuquay-Varina 69.89 3. Beulah B. Erinis, Rt. 3, Box 510, Dunn, NC 7.85 Commissioner Smith moved for the approval of the Tax Refunds. The motion received no second. BUDGET MESSAGE Dallas H. Pope, Budget Officer, presented the Harnett County F.Y. 1990-91 F.Y. 1990 - 91 Budget Message to the Board. Mr. Pope explained in detail a summary of the proposed budget and stated that the Board would not consider the adoption of the budget at this time. He explained that the General Statutes require that the budget, after its presentation, is to lay open for public inspection in the Office of the Clerk to the Board for ten days; after which, a public hearing will be held on the proposed budget. After the public hearing, the Budget Ordinance will be presented to the Board for consideration. The Harnett County F.Y. 1990-91 Budget Message is copied in full a the end of these minutes dated June 4, 1990, as document no. 6. NORTHWEST W & S Chairman Stewart called to order a special meeting of the Harnett County Board DISTRICT SPECIAL of Commissioners sitting as the governing body of the Northwest Water and MEETING Sewer District. John M. Phelps, Public utilities Attorney, presented for consideration a RESOLUTION & RELATED resolution and related documentation provided by the Farmers Home DOCUMENTS FOR Administration. Commissioner Smith moved for the adoption of the resolution. CONSIDERATION FROM Commissioner Hudson seconded the motion and it passed with a unanimous vote. FmHA The resolution and related documents are copied in full at the end of these minutes dated June 4, 1990, as document no. 7. I CONSIDERATION OF John M. Phelps, Public Utilities Attorney, presented for consideration a RESOLUTION RECINDING resolution rescinding Board action of March 15, 1988. Commissioner Collins ACTION moved for the adoption of the resolution. Commissioner Smith seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes as document no. 8. ADJOURNED NORTHWEST There being no further business, the special meeting of the Harnett County SPECIAL MEETING Board of Commissioners sitting as the governing body of Northwest Water and Sewer District duly adjourned. EAST CENTRAL W & S Chairman Stewart called to order a special meeting of the Harnett County Board DISTRICT SPECIAL of Commissioners sitting as the governing body of the East Central Water and MEETING Sewer District. The Clerk of the Board of Commissioners and of East Central Water and Sewer District of Harnett County placed before the Board of Commissioners a Certificate of Canvass of the Harnett County Board of Elections certifying to the Board of Commissioners, sitting as the governing body of the District, the results of the Special Election held for East Central Water and Sewer District of Harnett County on May 8, 1990. The Certificate was read and considered. Commissioner Hudson moved the adoption of the following I resolution: WHEREAS, the Board of Commissioners, sitting as the governing body of East Central Water and Sewer District of Harnett County, has considered the Certificate of Canvass of the Harnett County Board of Elections canvassing the referendum held for East Central Water and Sewer District of Harnett County on May 8, 1990 and certifying the result thereof to the Board of 330 commissioners, sitting as the governing body of the District, and has canvassed the result of said Special Election: NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the county of Harnett, sitting as the governing body of East Central I Water and Sewer District of Harnett County, that it be and hereby is certified and declared that the number of voters registered and qualified to vote at said special Election was 3,200. FURTHER RESOLVED, that it be and hereby is certified and . . declared that the total number of voters who voted .YES. in answer to the question, .SHALL the order authorizing $6,500,000 of bonds secured by a pledge of the faith and credit of the East Central Water and Sewer District of Harnett county to pay capital costs of providing water facilities within and without the corporate limits of the District, including acquisition and construction of storage tanks, pumping stations and distribution lines, and including the acquisition and installation of necessary machinery and equipment and the acquisition of land or rights-in-land required therefor, and a tax to be levied for the payment thereof, be approved?, was 638. The total number of voters who voted .NO. in answer to such question was 491. FURTHER RESOLVED, that a statement substantially in the I form hereinafter set forth declarinq the result of said election shall be prepared, delivered to the Clerk of the Board of commissioners and of the District for filing and recordation and published in accordance with law: STATEMENT OF RESULT OF SPECIAL ELECTION HELD FOR THE EAST CENTRAL WATER AND S~,t~&(' DISTRICT OF HARh~...... COUNTY May 8, 1990 \,ft~AEAS, by direction of the Board of Commissioners of the county of Harnett, sittinq as the governinq body of East Central Water and Sewer District of Harnett County, in the State of North Carolina, a special election was duly called and held for said District on May 8, 1990 for the purpose of submitting to the qualified voters of said District the question hereinafter set forth, and the Board of Commissioners, sitting as the I qoverning body of the District, has received from the Harnett County Board of Elections a certification of the results of the election, and has determined the result of said election to be as hereinafter stated: NOW, THEREFORE, The Board of Commissioners of the county of Harnett, sittinq as the governing body of East Central Water and Sewer District of Harnett County hereby makes the following statement of the result of said election pursuant to The Local Government Bond Act: 331 (1) The number of voters registered and qualified to vote at said election was 3,200. (2) The total number of voters who voted .YES. in answer I to the question, .SHALL the order authorizing $6,500,000 of bonds secured by a pledge of the faith and credit of the East central Water and Sewer District of Harnett county to pay capital costs of providing water facilities within and without the corporate limits of the District, including acquisition and construction of storage tanks, pumping stations and distribution lines, and including the acquisition and installation of necessary machinery and equipment and the acquisition of land or rights-in-Iand required therefor, and a tax to be levied for the payment thereof, be approved?, was 638. The total number of voters who voted .NO. in answer to such question was 491. The question in the form submitted was approved by the affirmative vote of a majority of those who voted thereon at said election. Any action or proceeding challenging the regularity or validity of this bond referendum must be begun within 30 days after . I (date of publication) Board of Commissioners of the county of Harnett, sitting as the governing body of East Central Water and sewer District of Harnett County, North carolina Commissioner Shaw seconded the motion, and the motion was adopted by the following vote: AYES: 5 NAYS: 0 EAST CENTRAL MEETING There being no further business, the special meeting of the Harnett County ADJOURNED Board of Commissioners sitting as the governing body of East Central Water and Sewer District duly adjourned. SOUTHWEST W & S Chairman stewart called to order a special meeting of the Harnett County Board DISTRICT MEETING of Commissioners sitting as the governing body of the Southwest Water and Sewer District. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented for consideration a WATER PURCHASE Resolution Authorizing Execution of Water Purchase Contract with the Northeast CONTRACT Metropolitan Water District of Harnett County and Harnett County associated with the Southwest Water and Sewer District Project. Commissioner Shaw moved for the adoption of the resolution. Commissioner Hudson seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated June 4, 1990, as document no. 9. I RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented for consideration a MANAGEMENT CONTRACT Resolution Authorizing Execution of Management Contract with Harnett County associated with the Southwest Water And Sewer District Project. Commissioner Collins moved for the adoption of the resolution. Commissioner Shaw seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated June 4, 1990, as document no. 10. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented for consideration a APPROVING PLANS FOR Resolution Approving Plans for Construction of Water Distribution System CONTRUCTION associated with the Southwest Water and Sewer District Project. Commissioner Shaw moved for the adoption of the resolution. Commissioner Collins seconded the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated June 4, 1990, as document no. 11. --..------ 332 ADJOURNED SOUTHWEST There being no further business, the special meeting of the Harnett County W & S DISTRICT MEETING Board of Commissioners sitting as the governing body of the Southwest Water and Sewer District, duly adjourned. EXECUTIVE SESSION Commissioner Hudson made a motion that the Board go into executive session. Commissioner Shaw seconded the motion and it passed with a unanimous vote. I Commissioner Hudson made a motion that the Board come out of executive session. Commissioner Shaw seconded the motion and it passed with a unanimous vote. MEETING RECESSED Chairman stewart recessed the meeting at 12 noon. O' Chairman Stewart reconvened the meeting at 1:00 p.m. and called to order a , PUBLIC HEARING ON public hearing on the F.Y. 1990-91 Secondary Roads Improvement Program for S.R. IMPROVEMENT PROG. Harnett County. F.Y. 1990-91 Mr. B. B. Isom, District Engineer, North Carolina Department of Transportation, presented and discussed the proposed F.Y. 1990-91 Secondary Roads Improvement Program for Harnett County. Chairman Stewart opened the public hearing for public comments. The following PUBLIC COMMENTS citizens provided general comments concerning the proposed program: 1. Robert Hill, P. O. Box 106-1, Dunn - SR 1809 2. Christine Creech, Rt. 1, Box 325 Benson - SR 1562 Chairman Stewart closed the public hearing concerning the proposed F.Y. 1990-91 Secondary Roads Program for Harnett County. APPROVAL OF S.R. Commissioner Shaw moved for the approval of the Secondary Roads Program as IMPROVEMENT PROGRAM presented by Mr. Isom. Commissioner Smith seconded the motion and it passed with a unanimous vote. . EXECUTIVE SESSION Commissioner Hudson made a motion that the Board go into executive session. Commissioner Shaw seconded the motion and it passed with a unanimous vote. Commissioner Shaw was excused from the meeting due to other obligations. I Commissioner Collins made a motion that the Board come out of executive session. Commissioner Hudson seconded the motion and it passed with a unanimous vote. TAX ~~PPING CONTRACT Commissioner Hudson moved that the County of Harnett terminate its agreement TERMINATED dated November 1, 1988, with Ragsdale Consultants, P.A. relating to the providing of professional services in connection with a mapping project involving digital cadastral maps, effective June 20, 1990, as provided in Section VII A. of such agreement, as amended, for cause. Commissioner Collins seconded the motion and it passed with a unanimous vote. JULY MID-MONTH MEETING Commissioner Collins moved that the regular mid-month meeting scheduled for RESCHEDULED July 16, 1990, be cancelled due to the Annual NACo Conference and that the meeting be rescheduled for July 23, 1990. Commissioner Smith seconded the motion and it passed with a unanimous vote. TAX REFUNDS Bobby Wicker, Tax Administrator, requested the following tax refunds: 1. Dunn Housing Associates, P. O. Box 3054, Greensboro, NC $8,870.62 2. Michael & Tammy Surles, Rt. 6, Box 45-3, Fuquay-Varina 69.89 3. Beulah B. Ennis, Rt. 3, Box 510, Dunn 7.85 Commissioner Collins moved for the approval of the tax refunds. Commissioner Hudson seconded the motion and it passed with a unanimous vote. ADJOURNMENT There being no further business, the regular meeting of the Harnett County Board of Commissioners, June 4, 1990, duly adjourned at 3:30 p.m. ~b~ ~/ I L1'ydpG. Stewart, Chairman K,/ t. &(OoAtI'AaAd Kay . Blanchard, Recording Secretary '~~~M' 'tJ ~~'A-O Vanessa W. Young, Clerk to t e Bo~d 333 DOCUMENT NO. 1. DlfAnLD'l'IDII OP '1'111!: 'l'OIIII OP aCID. I WHEREAS, ~e Town of Angier (bereinafter so.etiaes called "Town") ball for uny years operated, as one of its service. of general qovernaent, a volunteer fire depart:aent, and tftIERBAS, pursuant to contract ~e Town of Angier entered into a joint venture for fire ~otec:tion service. for the Town of Angier, said joint venture being entered into wi th ~e Black River Rural Fire Depar1:1l8nt, Inc. (bereinafter SGMti... called "Black River") which is a nonprofit w.._...ration oJ:9anized and existing under and by authority with the state of North carolina, for the purpose of delivering fire protection services to the resident. of the Black River Rural Fire District (bereinafter s01l8ti..s called "District") by way of a contr.ct with the Bamett county Board of ccmai.sioners as .uthorized pursuant to Ch.pter 69, Article 3A of ~e General statut.. of IIorth carolina, and WHERBAS, pursuant to and in .ccordance with the agree.ents existing between the Town and "Black River" , the 'l'own bas participated by furnishi~ funds for the operation of said joint voluntary effort to del ver fire protection service. to the residents of both the Town and the District, and WHEREAS, in accordance with joint venture arranguent and pursuant to a contract and aqr....nt entered into .s of AUCJUst 1, 1972 and ...nded on the 6th dey of Septeaber, 1973, the Town of Angier bas a property riCJht in and to the fire building located on Broad street in the Town of Anqier, North Carolina and pursuant to a new contract with the Bl.ck River Rural Fire Depart:aent, Inc. the Town and "Black River" bave agreed that the fire building located on Broad street in the Town of Anqier and the property on which it is situated shall be transferred to the Town of Anqier in the event that "Black River" ceaaes to exist or IlOve. it_in point of operation fro. said fire departaent building; and WHEREAS, througb the years of the operation of said joint venture, certain differenc.. of opinion. have arisen as to ~e level of fundillCJ needed frOll the joint venture and it is now in the I interest of all concemed that the fire protection services should be afforded the citizena of both ~e Town and District througb the efforts of the goveming body of one oJ:9anization, and WHERBAS, that the Town of Anyier is surrounded by the boundari.. of ~. Black River Rural F re District, and WHEREAS, as a ruul t of tl)e discussions between the goveming bodies of the Town and Black River, the Town Board of Co_issioners are of the opinion that it is in ~e best interest of the citizens of the Town, that the geographic are. of the Town should beco.e a part of the District and receive fire protection services as a 1I811ber of tbe District. NOW, ~~&' ..d, BB IT RESOLVED AS FOLLOWS: FIRST: Tbat pursuant to the authority in HCGS 69-25.11(5) the Town Board of co_i.sioners doe. hereby declare its agree.ent that the gSOCJraphic territory within the co.........at. li.it. of the Town of Angier should beco.. a part of and be included within the boundari.. of the Black River Rural Fire District; SB........J: That the Board of co_i..ioners of the Town of Angier does hereby requ.st that the Hamett County Board of Co_issioners con.ider the adoption of a resolution to change the boundaries of the Black River Rural Pire District by increasing the .... to include the territorial area within the corporate li.its of the Town of Angier: THIRD: That upon the passage of a resolution by the Harnett County Board of co..tssionera agreeing to the aforesaid requ.sted action, the Board of co_issioners of th. Town of Angier do hereby authori.e the execution of all other docWlen~s . neces.ary to accoaplish the inclusion of the territorial area within the corporate li.its of the Town of Angier and into the Black River Rural Fire Di.trict and that further the Board do.s by these pre.ent. .uthori.e the officials of the Town of Angier to transfer I the title to and d.liver .11 equipa.nt by the Town of Angi.r for fire protection purpo.e. to includ. all hos.s, fir_an'. suit., fire depar1:aent radio., the Town's fire truck together with all appurt.nant equipaent and .11 other fir. protection equipaent locat.d in the fir. departa.nt building and owned by the Town of Angier unto the Black Riv.r Rural 'ire Depar1:llent, Inc. and Black River Rur.l .Fir. Departaent, Inc. has by contract agr.ed that in the .v.nt that the Black Riv.r Rural Fire Departa.nt, Inc. cea.e. to exist or IlOV.. it. _in point of operation frOll the fire departaent building loc.ted on Broad street in Angi.r, Horth CarOlina, ~e Black River Rural Fir. Departllent, Inc. or it. .ucce.sor 1n title ahall tranaf.r .ald building and re.l property to the Town of Angi.r. FOURTH: That the official. of the Town of Angier are hereby authorized to do and perf ora all acta n.c....ry to carry out the int.nt of this resolution. 334 " Duly adopted this the 1st day of May, 1990 in reCJUlar meeting I duly ass8Jllbled, upon the following vote, to vit: -1- Ayes 0 Nayes. '. . TOWN BOARD OF COMMISSIONERS BY: s/Jack Marley JACK 1fARLBY, Mayor ATTEST: s/Jean Matthews JEAN MAAAAAdS, Town Clerk DOCUMENT NO.2. ImSOLU'l'IOIf OF '1'HE COUlft'Y OP HARKE'l"r '1'IIA" 1lIIBIIIWl. the ciU..... of l:be """" of Angier _ l:be Black I River Rural Fire district have for several years received fire protection servic.. froll a volunteer fire departaent. under an arrangeaent which has been jointly funded fra general . fund revenues provided by the Town ot Angier and revenues provided by the Black River Fire Districia and WIIERBAS, the governing bodies ot the Town of Angier and the Black River Rural Fire Departaent, Inc. believe it is in the best interest ot the citizens of the Town and the District that the territory vithin the Town of Angier c....r..,rate liuts become a part of the Black River Rural Pire District and that the citizens of the Town receive fire protection services as a Jl8llber of the District, ._ and "w:odAS, the boundaries of the Black River Rural Fire District cOllpletely s'-....,.IIId the boundaries of the Town of Angier and that territory wi thin the Town l1a1 ts of Angier are not wi thin any other fire protection district, and llA4:M'.EAS, that pursuant to authority set forth in North Carolina General statute 69-25.11 (5) the governing body of the Town of Angier and the Harnett county Board of ccmaissioners ..y cause a change in the boundaries to include the adjoining territory lying wi thin the corporate 11111 ts of the Town of Angier by adopting resolutions agreeing to such inclusion, and WHEREAS, the Town of Angier Board of cOllJllissioners meeting on the ~ day of May, 1990, did pass a resolution agreeing to the inclUiIon of the territory of the Town of Ang!er into the Black River Rural Fire District and that further in said resolution, the governing body of the Town of Angier did request the Harnett County Board of COIIIdssioners to consider the passage of a resolution agreeing to such inClusion of the territory of the Town of Angier into the Black River Rural Pire District: and I WHEREAS, the Town of Angier Governing Board did further in said resolution provide that upon the passage of such resolution by the Harnett county Board of coaiasioners, the Town officials vere authorized to transter all the Town's interest in all equipaent owned by the Town and located within the fire departaent building and used for fire protection purposes to include all hoses, fireman's suits, tire departMnt radios, and the Town's 1914 fire truck together with all appurtenant equipaent to the Black River Rural Fire Departaent, Inc., and WHEREAS, the Black River Rural Pire Departllent, Inc. has contracted with the Town of Angier to transfer all interests in the fire departaent building on Broad street, Angier, North carolina 335 I along with the property upon which it is .ituated to the Town of Angi.r in the .v.nt that the Black Riv.r Rur.l Fire Depart..nt, Inc. c..... to exiat or aov.. its ..in point of operation. I WDlIU, it i. 11&48 to .ppear to the Harnett county Bo.rd of coai..ionen that th. volunaen at the An9i.r-Bl.ck Riv.r Fir.e Departaen1:, Inc. .nd th. otticial. at the AncJi.r-Black River Fire Depa~t, Inc. are in .~nt with the r'ur".ee! action of cban9illCJ - the boundari.. at the Blaak River Rural 'ire Di.trict by includillCJ the Town of AlMJi.r. ROW, ,...:,,~.,I.D'ORB, BB IT llBSOLVBD AS l'OLLOWS: FIRS'1': 'l'bat pur.uant to the authority in R.C.G.S. 69- 25.11 (5) the Bamftt c:ounq Board at CODi..ioner. dou h.reby declare lts aCJr.-nt that the terrltory within the c........r.t. lWts at the Town at Anll.. beo~ . part at and be included within the boundari_ of the Black River Rural 'ire Di.trict:, I SBCOIID: That the otflclal. of the county of Harn.tt be and th.y are hereby au1:horl.ed to ca.. 'the neceaaary .dJd.nl.t.rati v. acts to be cc.pleted to pxoperly inclu4e all the proper1:i_ li.tee! for taxes vi'th1a 'the terrltozy ot the Town of AncJl.r, for the tax levy to be __ tor the tll1Ga1 year be91nnill9 July 1, 1"0, to rai.. sufficient funda to operate the ~ir. di.trict: a. propo.ed by the offioial. of the fire diatrict:, THIRD : '1'h8t the Board of co..i..ioner. for 'the county of Hamett 40 h.reby direct ita offici.l. to do and perton all neee..ary acts and thinqs to app........i.t.ly and n.ce..arily carry out the intent of 'this re.olution. Duly adopt.d 'th1. the ~ day of .\11DI" , 1990 in r8C)\1lar MetillC) duly ....-b;L , upon the follow1nq vote, to wit: 5 Ay.. 0 Nay... . HARlfB'l"l',,-.. ......1 BOARP or COIOIISSIONBRS By:~_)J~ Lr,QYD p. STEWART, CHAIRKAR I -;2;.:. "J ~~' SA W. YOUNG, ! DOCUMENT NO.3. NORTH CAROLINA RESOLUTION AUTHORIZING HARNETT COUNTY TRANSFER OF PROPERTY THAT WHEREAS, the Harnett County Board of Education desires to transfer to the Southwest Water and Sewer District of Harnett County a parcel of real estate as described on the proposed deed, copy of which is attached hereto and incorporated herein by reference as Exhibit A; and WHEREAS, the laws of the State of North Carolina require that the County of Harnett be given the opportunity to acquire any real property which the Harnett County Board of Education desires to convey; and WHEREAS, the Harnett County Board of Commissioners has reviewed the proposed transfer of the subject parcel of real estate and has d.termined that said transfer would be to the Southwest Water and Sewer District of Harnett County, an entity organized and existing pursuant to Article 6, Chapter 162A of the North Carolina General Statutes; and I WHEREAS, said entity provides water and sewer services to a portion of Harnett County and transfer of Baid property as proposed by the Harnett County Board or Education to the Southwest Water and Sewer District of Harnett County would promote the best interest of the citizens of Harnett County; and WHEREAS, the Harnett County Board of Commissioners has determined that the subject property is not of value to the County of Harnett for any public purpose and that said County should not exercise the right to acquire 8uch property as provided for in G.S. S115C-518 : ROW, THEREFORl, BE IT RESOLVED by the Harnett County Board of Commissioners that the right of the County of Harnett to acquire the above referenced property in the manner prescribed by the General Statutes of North Carolina shall not be exercised, and that such property shall be and Salle is hereby released from such right. This 4th day of June, 1990. HARNETT COUNTY OF BOARD OF COMMISSIONERS ~ 336 EXHIBIT A Prepared By: John M. Phelps, II, WOODALL, FlLIIIT , PULPS, P.A., Post Office Box 3', Llllinqton, Horth Carolina 27546 Parcel Number: I NORTH CAROLINA DUD IlAlHBTT "".1...1".... THIS DIID ade this day of June, 1"0 by and bet"een '1'RB RARNITT COUNTY BOARD or IDUCATION, a body politic organized and existing under the laws of the State of North Carolina (hereinafter "Grantor") to the S....."".ST WATEa AND slWIa DISTRIC'l or HA..o..i...u "'-''''u._.... , a County water and sewer district duly organized and \ existing pur.uant to Article 6, Chapter 162A of the North Carolina General Statute., P.O. Box 75', Lillinqton, North Carolina 27546, (hereinafter "Grantee") WIT N I S SIT H: THAT WRIRlAS, the Grantee de.ire. to acquire a parcel of real e.tate for the purpo.e of erecting a meter, pressure reducing valve and related appurtenance. thereon; and WHIREAS, the Grantor de. ires to convey unto the said Grantee the property herein described for the purpose naJDed , as 18 authorized by S160A-274 of the General Statutes of North Carolina. NOW, THEREFORE, Grantor, in consideration of One Dollar and other valuable consideration. to it paid by Grantee, the receipt of which i. he~eby acknowledged, ha. bargained and sold, and by the.e pre.ent., does grant, bargain, sell and convey unto Grantee in fee .imple, all that certain lot or parcel of land lying and being in Barbecue Town.hip, Harnett County, North Carolina, and more particularly de.cribed as follows: Beginning at an exi.ting PE located in the I centerline of N.C. Highway No. 27, said beginning point being 0.8 mile. .outheast of the intersection of the center line of said High"ay No. 27 and centerline of NCSR 1116, said beginning point also being located South 57 degs. l' min. 46 .ec. last 1145.52 feet from an existing PE, the northernmo.t corner of that property of the Grantor described in deed recorded at Book 851, Page 410, Harnett County Regl8try; and runs thence frOll said beginning point along with and as the centerline of NC Highway No. 27 South 57 degs. 18 min. 42 .ec. last 48.20 feet to an existing PE, and runs thence continuing with .aid centerline South 57 deg.. 18 min. 42 .ec. last 1.80 feet to a PE Set; and runs thence South 22 degl. 41 min. 18 .ec. We.t 30.00 feet to an Iron Pipe Set located in the .outhern margin of the right of "ay of .aid Highway No. 27; and runs thence South 22 degl. 41 min. 18 .ec. West 50.00 feet to an Iron Pipe Set; and runs thence North 67 degs. 18 min. 42 lec. We.t 50.00 feet to an Iron Pipa Set; and runs thence North 22 degs. 41 ain. 18 sec. la.t 50.00 feet to an Iron Pipe Set located in the southern margin of the right of way of said High"ay No. 27 and run. thence North 22 degs. 41 aiD. 18 sec. la.t 30.00 feet to the point and place of beginning, as .hown on a plat entitled "South"est Water and Sewer Diltrict of Harnett County - Meter and pres.ure Reducing Valve Site" prepared by T , a Associate., Asheboro, North Carolina, and recorded at Plat Cabinet , Slide , Harnett County aegl8try. TO HAVE AND TO HOLD the aforesaid lot or parcel of land and all privilege. and appurtenance. thereto belonging to the Grantee, in fee simple. And Grantor, covenants with Grantee, that Grantor i. .eized of the premise. in fee simple, has the right to convey the .... in fee limple, that title 18 arketable and free and clear of all encumbrances, and that Grentor will warrant and defend the title again.t the lawful claim. of all persons whomsoever except for the I exceptionl hereinefter .tated. Title to the property hereinabove de.cribed is .ubject to the following exceptions: U.ual utility ea.ements. IN WITNESS WHEREOF, the Grantor ha. cau.ed this in.trw.ent to be signed in it. name by the Chairman of the Harnett County Board of Iducation and attested by the Secretary to said Board, and sealed with the cOllllllOn .eal of said Board, all under authority granted by the Harnett County Board of Iducation the day and year fir.t above written. JIAJ...I,.... 00...... BOARD or IDUCATION 337 ~ '\ . \ \ . \ '"'l I -o- k \ .. j' /!v~... ~~ .... ~ _ :1;,.0 /~ / . .."liT I HARNETT COUNTY BOARD OF EDUCAT' (WESTERN HARNETT HIGH SCHOOl.) (WESTERN HARNETT MlDOl.E SCHOOl.) DOCUMENT NO. 4. HARNETT COUNTY NORTH CAROLINA RESOLUTION THAT WHEREAS. the Town of Broadway and the County of Harnett both enforce the North Carolina State Buildinl code; and WHEREAS, the Town and County have alreed that the Town will perfonn Buildinl Inspections functions for the area ins ide the Broadway City L~its; and WHEREAS, the Town and County have agreed that the County will perfonn Buildinl Inspections functions for the area outside the Incorporated City limits of Broadway and located within Harnett County, otherwise known as the extra- territorial jurisdiction of Broadway; and WHEREAS, the Building Inspection fees for the area outside the Incorporated City limits of Broadway and located within Harnett County. will correspond to the fee structure for the Harnett County Building Inspections Office as set by the Harnett County Board of Commissioners; and I WHEREAS, the Town of Broadway agrees to infonn the County of any annexations; and WHEREAS, The County of Harnett alrees to require Zoning approval prior to issuing a buildinl pennit in the extra-territorial jurisdiction of Broadway. However, the Harnett County Building Inspections Office is not responsible for any tasks associated with the enforcement of the Broadway Zoning Ordinance. NOW THEREFORE . be it resolved that the Town of Broadway will perfonn all of the Inspection duties in the Incorporated city limits of Broadway as shown on the enclosed map and the County of Harnett will perfonn all of the Inspection duties for the extra- territorial jurisdiction of the Town of Broadway within Harnett County and the inspection fees for the extra-territorial jurisdiction of the Town of Broadway will be based on the fee structure established by the Harnett County Board of Commissioners. Duly adopted this ~th day of June. 1990 HAllli~J.J. COUNTY BPAJID OF COMMISSIONERS 338 DOCUMENT NO.5. FROM: E. Marshall Woodall 0: NOTICE OF TAX SUITS COMMENCED; TAX SUITS DISMISSED AND RELATED SERVICES I MONTH OF MAY 1990 NAME SUIT NO. * AMOUNT COL. **COURT ATTORNEY COSTS FEES Averasborp Tnwnship Jones, Rebecca 89 cvD 0632 487.35 241.10 190.00 Barbecue Township Allen, Lewis 90 CvD 0213 819.75 251. 05 190.00 Kirchmer, Eugene 90 CvD 0190 1,171.07 257.80 190.00 Buckhorn TownShip Russell, Richard 89 cvD 1252 639.34 259.20 190.00 Grove Township Bullard, Taft nla 1,952.47 100.00 100.00 ~t,y~t's Creek Township Billups, Freddie 88 evD !149 1,439.01 401. 65 340.00 Monk, Freda 87 cvD 1250 ~.90g.U ~.54 -190.0'1 Subtotal 10,418.27 1,936.34 1,490.00 NOTE: * Total collected includes taxes, interest and Court costs. ** Court costs includes attorney fees allowed by Court. Additional Attorney's Fee Charae D.At.I EXl)lanation Uu 5-15-90 Conference with Wanda Spivey regarding bankruptcy procedures .50 25.00 5-15-90 Telephone calls to Wanda Spivey regarding Department of Revenue and Bynum JS.OO International, Inc. .50 Total Additional Attorney's Fees $50.00 TOTAL ATTORNEY'S FEE 1,540.00 I Advanced Costs: 5-7-90 Lillington Postmaster - registered mail Audrey King - 89 CvD 0416 4.20 5-11-90 Lillington postmaster - registered mail Freda Monk - certified mail 2.00 5-11-90 Lillington Postmaster - postage Freda Monk - 87 CvD 1250 3.75 5-21-90 Lillington postmaster - registered mail David Smith - 90 CvD 0223 8.80 5-25-90 Lillington Postmaster - registered mail Richard Jenkins - 90 CvD 0623 ~ Total Advanced Costs $22.95 BALANCE DUE S1.562.95 1f~Ja<< ~oW--- E. Marltftall Woodal Post Office Box 39 Lillington, NC 27546 Telephone: (919) 893-5191 . I 339 DOCUMENT NO. 6. BUDGET MESSAGE I June 4, 1990 TO: THE HARNETT COUNTY BOARD OF COMMISSIONERS Lloyd G. stewart, Chairman Bill Shaw, 'liea Chainan Commissioners Rudy Collins. Mack Reid Hudson. and Mayo Smith In accordance with the Local Government Budget and Fiscal Control Act, Article 3, G. S. 159.11, the proposed budget for the fisc~l year beginning J~ly 1, 1990, is presented herewith for your consideration. The law specifies that the budget ordinance be adopted by July 1, 1990. At the request of the Board of Commissioners, the budget hearing has been set for June 18. 1990, at 7:00 P. M. in the County Office Building, 102 East Front street, Lillington. North Carolina. The time and date of the public hearing will be published as required by law. The proposed budget is presented in the same format that was used for the F.Y. 1989-90 Budget. Under this method, all taxes are levied for the General Fundi and the General Fund contributes to other funds and to the Board of Education for the funding of the schools in Harnett County. The F.Y. 1990-91 Budget was prepared in keeping with the policies. goals, and needs of the communities of the County, as determined by the Board of Commissioners and Budget Officer. The major changes in the F.Y. 1990-91 Budget are as follows: I 1. The major increases and adjustments in the proposed budget involves Education (school current expenses and capital outlay), Landfill (Federal and State mandated solid waste programs), Law Enforcement (State mandated requirements for jail operation), and Social Services (Federal and State mandated programs). 2. The Education budget items includa an increase of $503,000 fur school current expenses and capital outlay. The proposed budget includes $6,384,774 for allocation to the Harnett County Board of Education. 3. The Landfill budget shows an increase of $537,933 designated for construction and operational requirements mandated by Federal and state solid waste directives. 4. The Law Enforcement budget shows an increase of $403,939 which primarily supports the new state mandated requirements for jail operations. 5. The Social Services budget includes an increase of $195,860 for continuing Federal and State mandated programs involving Medicaid, AFDC, and Emergency Assistance. 6. The Tax Department budget includes continuation of the multi year I tax mapping contract project which is budgeted for $416.660. 7. The Central Carolina Community College budget has increased $65,110 for the support of the new high tech classroom facility on the Harnett County Campus. 8. The proposed budget includes a 5' cost of living salary increase for all regular County employees. 9. The County group medical insurance program has a 12' increase included in the proposed budget based on projected medical cost for F.Y. 1990-91. 340 10. The proposed budget includes new manpower positions for five departments. A. Finance - one Accounting Clerk B. Law Enforcement - four Jailers I C. Emergency Services - one Fire Marshal D. Social Services - six IN caseworkers one Clerk Typist E. Parks & Recreation - one Senior Center Administrator 11. The Contingency Fund proposed budget is $20,000 which provides funding for several projects; such as personnel merit pay program, special projects, and maintenance and repair of buildings. 12. In addition to the general county taxes, the proposed budget includes special districts' taxes for the fire and rescue districts and the special school district. All special districts have submitted balanced budgets and letters of request for their tax levy. The Finance Officer will be directed in the Budget Ordinance to turn over all funds collected for the special tax districts to the respective district or designated agency. 13. Revenue: A. Ad Valorem Tax $10,283,145 Proposed 488,505 Increase B. Prior Years Taxes $ 450,000 Proposed 41,303 Increase . C. Interest on Investments $ 500,000 Proposed 200,000 Increase D. Federal Drug Grant $ 65,606 Proposed 65,606 Increase E. Solid Waste Fees $ 800,000 Proposed 800,000 Increase F. Airport Grant $ 277,830 Proposed 277,830 Increase G. Sales Tax $ 5,250,000 Proposed 76,200 Increase H. Fund Balance $ 83,276 P.wrwsed 83,276 Increase In order to generate revenues for the General Fund budget for the ad valorem tax line item, it will be necessary to adopt a tax rate of $0.73 per one hundred dollar ($100) valuation, which is the same tax rate approved for F.Y. 1989-90 Budget. Attached to the Harnett County budget is a copy of the Public Utilities budget. Since Harnett County Public Utilities is an enterprise fund, it is filed separately from the Harnett County budget and is included as a separate budget . package. Public Utilities will be adding new water and wastewater project for F.Y. 1990-91 which will be developed through project budget ordinances for the Southwest District, Southeast District, Northeast Metro District, and Cape Fear Regional Wastewater System. The F.Y. 1990-91 proposed budget is a balanced budget for the General Fund and Public Utilities. General Fund: Revenue $24,897,872 Expenditures $24,897,872 341 Public Utiliites: Revenue $ 2,378,374 Expenditures 2,378,374 I The General Fund Budget for F.Y. 1989-90 was $23,801,328 which shows an increase of 4\ for the F.Y. 1990-91 proposed Budget. The proposed F.Y. 1990-91 Budqet has been prepared by the Department Heads. the Finance Officer, the Budget Officer, and the Budget Working Group. It is the privilege of the Board of Commissioners to alter the proposed , r.Y. 1990-91 budget at anytime before adopting the Budget Ordinance. .'1/....., / j "7 dII4.. . j, /":/:- ..,' < )~~ Dallas H. Pope';' c:.sbdge-= Officer './ DOCUMENT NO. 7. Resolution No: ------------ 8E IT RESOLVED: That the Chairman and Clerk of Northwest Water and Sewer District of Harnett County be authorized to execut9 al I forms necessary to obtain a loan and grant from FmHA, in.;:oIuding, but not Ii mi ted to the fol lowing forms: Form FmHA 1942-47 Loan Resolution Form FmHA 1942-46 Letter of Intent I 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 Obi igation of Funds Form FmHA 1942-31 Grant Agreement Form FmHA 1910-11 Appricant Certification Federa! Collection Pol icies Form AD-I047 Certification Regarding Debarment... . Form AD-I048 Certification regarding a Drug-Free Workplace.. That the District elects to have the interest rate charsed by FmHA to be the lower of the rate in effect at either the time of loan approval or loan closing: This resolution to become a part of the official minutes of the Board meeting held on June 4, 1990. Motion made by Commissioner Smith . seconded by . Commissioner Hudson to adopt the resolution. Motion passed . 5 . to . 0 . A HEST ,")c....~ 1'.1'"'1' BY' ~ )J /JiwJ C erk ") Chairman Form FmHA 1942-3\ FORM APPROVED (Rev, 12-89) OMB NO, 0575.00H UNITED STATES DEPAllntENT OF AGRICULTURE FARMEIlS HOME ADMINISTRATION ASSOCIATION WATER OR SEWER SYSTEM GRANT AGREEMENT THIS AGREEMENT dated June 4, ., 19~. between I Northwest Water and Sewer District of Harnett COUilC," a public corporation orllnized and opera tine under Constitution and General Statutes of North Carolina (AlltlronziIIK SMillIe) herein called "Grantee," and the United Stites of Americl ac:tilll throulh the Farmers Home Administration, Department of Agri- culture. herein called "Grantor," WITNESSETH: WHEREAS Grantee hiS determined to undertlke a project oIlcquilitlon. construction, enl. ...... ,ent, or clpital1mprovement of a (water) (sewer) system to serve the Irel under its jurisdiction It an estimated COlt of S 3.318.000.00 and has duly au thorized the undertakin. of such project. Grantee is able to ~inance not more thin S 1.644,000.00 of the development costs through revenu..,. charces. taxes or assessments, or funds oth. , " . avaUable to Grantee resuttiRe in a reasonable user charge, 342 Said sum of $ 1,644,000.00 has been comitted to and by Grantee for such project development costs. Grantor has agreed to grant the Grantee a sum not to exceed S 1.674.000.00 or 50.5 percen t 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 shal1 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 detennined that the Grantee has failed 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 1.674.000.00 I percent of the development costs, as defined by applicable Fanners 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 project plans and specifications and any modifications thereof prepared by Grantee and approved by Grantor, B. Pennit periodic inspection of the construction by a r'r. _"'.. tative 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 al1 applicable state and federal laws and regulations and manage. operate and maintain the system. including this project if less than the whole of said system, continuously in an efficient and economical manner. E. Make the services of said system available within its capacity to all persons in Grantee's service area without discrimina. tion as to race, color, religion. sex, national origin, age, marital status. or physical or mental handicap (possess capacity to enter into legal contract for services) at reasonable charges, including a"...... ..ents, taxes. or fees in accordance with a schedule of such charges. whether for one or more classes of service, adopted by resolution date March 15 ,19~,asmay be modified from time to time by Grantee, The initial rate schedule must be approved by Grantor. Thereafter, Grantee may make such modifications to the rate system as long as the rate schedule remains 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. ..". .1, 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 penn it periodic inspection of its operations by a re- presentative of the Grantor. I. To execute Fonns FmHA 400-1, "Equal Opportunity Agreement," and FmHA 4llO-4, "Assurance Agreement," and any other agreements required by Grantor which Grantee is legally 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. J. Upon any default tinder 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 extent legally permissible, will repay to grantor forthwith the original amount of the grant received with 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 cancel1ation 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. I I. Title to real property shal1 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 Grantee shall obtain approval by the Grantor agency for the use of the real property in other projects when the Grantee determines that the pr.'r'" .J' is no longer needed for the original grant purposes. Use in other projects shall be 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 1 and 2 above, the Grantee shall request disposition instructions from the Grantor agency or its successor Federal agency. The Grantor agency shall observe the followine rules in the disposition instructions: (a) The Grantor may be pennitted to retain title after it compensates the Federal Government in an amouot 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 anll 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. The Graut Agreement COllers the following described real property (use continuation sheets as necessary), All Rights-of-Way or easements that are obtained by Northwest Water and Sewer District by negotations, condemnation, or purchase of existing systems: all pump sites, and standpipe sites. M, Abide by the following conditions pertaining to nonexpendable personal property which is furnished by the Grantor or acquired wholly .1r in part with grant funds, Nonexpendable 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 nonexpeildable per"onal propert)' provided such definition would at least include all tangible personal personal property as defined above, I. Use of nonexpendable property, (a) The Grantee shall use the property in the project for which it was acquired as long as needed, When no longer needed for the original project, the Grantee shall use the property in connection with its other Federally sponsored activ- ities. if any, in the fOllowing order of priority: (I) Activities sponsored by FmHA. (2) Activities 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 given to other Federally sponsored projects, 2, Disposition of nonexpendable property. When the Grantee no longer needs the property as provided In paragraph (a) above, the property may be used for other aetivites in accordance with the following standards: I (a) Nonexpendable property with a unit acquisition cost of less than $ 1,000. 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 uses provided that compensation is made to the original Grantor agency or its successor. 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 and the property has further use value, the Grantee shall request disposition instructions from the original Grantor agency. The Grantor 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 Reaulations (FPMR). to the General Services Administration by the Grantor agency to detennine whether a requirement for the property exists in other Federal agencies. The Grantor agency shall issue instructions to the Grantee no later than 120 days after the Grantee request and the following procedures shall govern: (1) 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 percenta. of Federal participation in the cost of the orilinal project or program. How- ever, the Grantee shall be permitted to deduct and retain from the Federal share $I 00 or ten percent of the pro' ceeds, whichever is Ifeater, for the Grantee's sellin, and 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 intcrim storage costs incurred, ~.,- 343 (3) If the Grantee is instructed to otherwise disposo: uf tile property, the Grantee shall be reimbursed by the Grantor aaency for such costs Incurred in its disposition. 3. The Grantee's property manaaement standards for nonexpendable personal property shall also include: (a) Property records which accurately provide fot: a description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentaae (at the end of budaet 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 includinl 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 exiltence, current utilization, and continued need for the property. (c) A control system shall be in effect to insure adequate safelllards to prevent loss, damace, or theft of the property. Any loss. damaae, or theft of nonexpendable property shall be investipted and fully documented. (d) Adequate maintenance procedures shall be implemented to keep the property in cood condition. (e) Proper sales procedures shall be establilhed for unneeded property which would provide for competition to I the extent practicable and result in the hipest possible return. This Grant Alreement covers the foUowinf described nonupend4lb1e property (use conti_tion sheets as necemuy J. All water distribution lines, connections, meters. valves. fire hydrants, pumps, all buildings, all equipment. standpipe, and all other facilities constructed or purchased by the Northwest Water and Sewer District as a part of its water facility. N, Provide Financial Manaaement Systems which will Include: I. Accurate, current, and complete disclosure of the financial results of each pnt. Financial reportinl will be on an accrual basis. 2. Records which identify adequately the source and application of funds for IfII1t-supported activities. Those records shall contain information pertalninl to lrant awards and authorizations, obllptions, unobllpted balances, assets, liabUlties, outlays, and income, 3. Effective control over and accountability for all funds, property and other assets. Grantees shall adequately safe- lIIard all such assets and shalllSsure that they are used solely for authorized purposes, 4. Accountinl records supported by source documentation. O. Retain financial records, supportinl documents, statistical records, and all other records pertinent to the grant for a period of at Icast three years after &rInt closinl except that the records shall be retained beyond the three-year period if audit findings have not been resolved. Microntm copies may be substituted in lieu of oriJinal 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 lovc:mment which are pertinent to the specific Irant program for the purpose of makinl audits, examinations, ex- cerpts and transcripts, P. Provide information as requested by the Grantor to determine 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 rellllalions and this Agreement. R. AJree to account for and to return to Grantor interest earned on &rInt funds pendlnl this disbursement for program purposes when the Grantee is a unit of local ,ovemment or a nonprofit orpnlzation. Statel and aaencies or instrumentalities of states shaI1 not be beld accoulltable for Interest earned on Irant funds pendln, their disbursement. S. Not encUlllber, 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 c."""..,. 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" Act (18 U.S.C, 874) as supplemented In Department of Labor reculations (29 CFR, Part 3), The Grantee shall report all suspected or reported violations to the Grantor. U, In construction contracts In excess of 52,000 and in other contracts 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 reculatlons (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. !187SC-9) and Section 308 of the Water Pollution Control Act (33 U.S.c. ~ 1318) relatlnl to inspection, monltorln,. entrY, reports, and Information, IS well IS aU other requirements specified in Section 114 of the Clean Air Act and Section 308 of the Water Pollution Control Act and all rellllatlons and cuidellnes issued thereunder after the award of the contract. Such reaulatlons and lIIidelines can be found in 40 CFR 15.4 and 40 FR 17126 dated April 16, 1975. In so dolnl the Contractor further a&rees: I l. As a condition for the award of contract, to notify the Owner of the receipt of any communication from the Envi- ronmental Protection Aaency (EPA) indlcatin, that a facility to be utilized in the performance of the contract is under con- sideration to be listed on the EPA list of Viola tin, Facilities. Prompt notification is required prior to contract award. 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 Vlolatin, Facilities pursuant to 40 CFR I S.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 enforcinl such provisions. As used in these parqrapbs the term "facility" means any bulldinl, plan,lnstallation, 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 IfIIlt, agreement,contract, subsrant, or subcontract. Where a location or site of operation contains or in. cludes more than one bulldinl, plant, installation, or structure, the entire location shall be deemed to be a facility except where the Director, Office of Federal Activities. Environmental Protection Aaency, determines that independent facilities are co-located in one aeographicalarea. W. The followinl clause is applicable to nonprofit ol'lanizations: All a cODdltion of this Gnnt or eooperatlye All" ent, the recipient _res and certifies that It I. in compliance with and wm comply In the courae of the A ,,, ent with all applicable lawl, raJulatloll8, Executive Orders and other ..nenlly applicable requirementa, Includinl tho.e set out In 7 erR 3015.205(b), which hereby are Incorporated in this A . ent by referenee, and auch .tatutory provisions u are qleClflc:aUy set forth herein. GRANTOR AGREES THAT IT: A. Will make available to Grantee for the purpose of this Agreement not to exceed S 1.674.000.00 which it will advance to Grantee to meet not to exceed 50.5 percent of the development costs of the project in accordance with the actual needs of Grantee as determined by Grantor, B, Will assist Grantee, within available appropriations, with such technical assistance as Grantor deems appropriate in planninl the project and coordlnatinl the plan with local official comprehensive plans for sewer and water and with any State or area plans for the area in which the project is located, C. At its sole discretion and at any time may live any consent, deferment, subordination, release, satisfaction, or termina- tion of any or all of Grantee's Irant obliptions, with or without valuable consideration, upon such terms and conditions as Grantor may determine to be (I) advisable to further the purpose of the grant or to protect Grantor's financial interest therein and ( ~ I con- sistent with both the statutory purposes of the Irant 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 wiU occur when both the Grantee and Grantor agrec that the continuation of the project will not produce beneficial results 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 autbor- ized Chairman I and attested and its corporated seal affixed by its duly authorized Clerk ATTEST: By L.... ~.._)( By ~ )J /Jt..,.--./'---- Clerk Chairman (Title) (Title) UNITED STATES OF AMERICA FARMERS HOME ADMINISTRATION By Jackie E. McLamb District Director (Title) --.--.- 344 USDA-FrnHA I'osition J Form FmHA 4004 (Rev. 8.29.79) ASSURANCE AGREEMENT (Under Title VI. CiYil RisJtts Act of 1964) The Northwest Water and Sewer District of Harnett Co~~tv .-...-------------.-------.-..--..-----...---...--.... -----.--- ,.----.....(name of 'ecipieiiij--.----. I P.O. Box 759.. Lil1il!8S~!!_L____'!~....lZi~6 .--_. -............--.-..--............-------.-.--.-.--.--.--......- . (add,eu) ("Recipient" herein) hereby assures the U. S, Department of Agriculture that Recipient is in compliance with and will continue 10 comply with Title Viol' the Civil Rights Act of t 964 (42 USC 2000d el. seq.), 7 CFR Part 15, and Farmers Home Administration regulations promulgated thereunder. 7 C.F.R. 1190\.202. In accordance with that Act and the regulations referred to above, Recipienl agrees that in connection with any prugr,am or activity for which ~ecipient receives. Federal financial assistance (as such term is defined in 7 C.F.R. 114.2) no person In the United States shall. on the ground 01 race, color, or national origin. be excluded from participation in, be denied the benents of. or be otherwise subjected 10 discrimination. \. 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 thereof. 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 ne~'Cssary to ascertain our/my compliance with this agreement and the regulations. (b) Permit access by authorized employees of the Farmers Home Administration or the U,S, Department of Agriculture during normal business hours to such books. records, accounts and other sources of information and its facilities as may be pertinent to ascertaining such compliance. (c) Make available to users, participants. beneficiaries and other interested 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 Ill' Agriculture finds necessary 10 inform such persons of the protection assured them against discrimina tion. 3, The obligations of this agreemenl shall continue: (a) As to any real property, including any structure. acquired or improved with the aid of the Federal financial assistance, so long as such real property is used for the purpose for which the Federal financial assislance is made or for anolher purpose which affords similar services or benefits, or for as long as the Recipient retains ownership or possession of the property, whichever is longer, (b) As to any personal property acquired or improved with the aid of the Federal financial assistance, so Illng as Recipient retains ownership or possession of the property. (c) As to any olher aided facility or activity, ufltilthe last advance of funds under the loan ur grant has becnmade. 4, Upon any breach or violation of this agreement the Government may, ~t its or!ion: (a) Terminate or refuse to render or continue nnancial assistance for the aid of the property, facility, project, service or activity. (b) Enforce this agreemenl hy ~uit for specific performance or by any other available remedy under the laws of the United Slates or lhe State in which the breach or violation occurs, Rights and remedies provided for under this agreement shall be cumulative, I In witness whereot., .___~.<<!!:!.h!!_l!!:_.y.~!_~!=.:___~~g___1:!~_~~_t_..p.!.t!U_~_<;_L__.____ .______mm_____....__.__.._.___.._..___.._______. on tllis ("lamp of recipient} date has caused this agreemcnt to hc executed by its duly authorized officers and its seal affixed hereto, or. if a natural person, has hereunto executed this agreement. ~_9.!=.:S_Q!!!.l!!;_.ltl!!..~L~!lg.__1:!.~.~~X...p.J.~t r1&L.__._________... I<edp;"/Il (S E A l) .J~!!!___~.l...!.9_9.Q______m___mm...m..___......_.._.___._____.____ ...__. ....____._. r-~ ( Date Attcs:1l?:::~-~~~.~~-.l~-:j:~~~=r Chairman .1fm-....-.--..---..---~~...-=:...-..---....7Tii;.--- "U.S.GPO:i~"'l558 Clerk "Ie BY' .. ~._2J...___m --- '.. .-.- .......---......-.----------...---... . . I 1;'('1:1";('111 - ....'1.. FORM APPROVED UNITED STATES DEPARTllIENT OF AGRICULTURE OMl No. OS7HlOl8 Fonn FmHA 400-1 APPROVAL EXPIRES 4/84 (Rev. 7.19-83) FARMERS HOME ADlllNlSTRATION EQUAL OPPORTUNITY AGREEMENT This agreement. dated .____..June 4. t~.Q..._______.._.._.._.._..__...._.._...._....__._......_.._...._...._.._._.__.._.._._....__._. between Northwes t Wa te~.._~~.L~!:!.~!_.~!~!:!!~~__~L!!!!~~E.~._~.~~~~X.__...._.__.._.._.__.....__.__.__...__...._..______.._...._. (herein called "Recipient" whether one or IIIOre) and the FUIlIers Home Administration. United States Department of Agriculture, pursuant to tbe rules and reculations of the Secretary of Labor (berein called tbe 'Secretary') Issued under the autbority of Executive Order 11246, as amended, witnessetb: In consideration of fill8nclal assistance (whether by a 10_. 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 constmction work performed by Recipient or a construction contract financed with sucb financial assistance exceeds Sl0,OOO--lIDless .n._, ,ed by rules, reculatlons or orders of the Secretary of Labor lsaued 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 _rk, or modification tbereof, subject to tbe relevant rules, reculations. and orders of tbe SecretllfY or of any prior authority tbat remain in effect, whicb is paid for in wbOle or in part witb tbe aid of sucb financial assistance. tbe following "Equal Opportunity Clause": During the performance of this contract, tbe contractor"... .." as follows: (a) Tbe contractor will not discriminate against any employee or applicant for employment because of race, color. relielon, sex or national orieln. The contractor will tllke affirmative action to ensure that applicants are employed. I and that employees are treated during employment. without reprd to their race, color. rellelon. sex or national orieln. Such action shalllnc1ude. but not be limited, .to the following: employment, uperadinc, demotion or trlllsfer; recruitment .Jf recruitment advertising; layoff or termination; rates of payor otber forms of compensation; and selection for tralninc, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the FlIfmers Home Administration setting fortb the provisions of this nondiscrimlll8tion clause. (b) Tbe contractor will, In all iollcitations or advertisements for employees placed by or on behalf of the contractor, stste that all qualified applicants will receive consideration for etIIployment without regllfd to rllCe. color, rellelon. sex or national orieln. (c) The contractor will send to eacb labor union or representative of workers witb whicb he has a collective bllfcalning agreement or otber contrect or Ullderst80dinc, a notice, to be provided by tbe F_ers HOOle Admlniatration. advising the said labor union or workers' representative of the contrector's commitmenta under tbls '-I,.' ent as required parsuat to section 202(3)- of Executive Order 11246 of September 24. 1965, and shall post copies of the notice in conspicuous pIeces available to employees ancI appliclllts for employment. (d) The contractor will COIIply witb all provisions of Executive Order 11246 of September 24. 1965, and of all rules, repistions and relevlllt orders of the Secretary of Labor ad of any prior authority wblcb remaia in effect. (e) The contractor will fumisb all infonnation IIId reports required by Executive Order 11246 of Septem~r 24. 1965. rales, regulations, and orders, or pursuant thereto, and will permit access to his books, records, and acconnts by the Farmers Home Administration, Office of Equal Opportunity, U. S. Department of Agriculture, and the Secretary of Labor for parposes of investigation to ascertain compliance witb sucb rules, regulations. and orders. f-:;--:-, 345 (0 In the eveat of the contractor'. lIOIICOlllpUaace witlt the Equel Opportunity (Federelly Asaitted Construction) clause or witla BY of tile Nid ruin, replation.. or orden, till. ...,' ,. .. ..y be ~celled, tenliuted, or saspeaded in wiIole or i_ put lad tlte .." .,., SI8Y lie ded"'laeUpble for mtIter Go_lit COIItqcts or Feder8lly ANisted coellbllctlOll coebad. ia accorUlce witlt proc:eUre. a.lIOIlaed Ia IUCldve 0nW No. 11246 of Septetaber 24. 1965, _ sac:h otIaer IIIIICt10na lIIay be IIIpOtMld _ reIIeIIl.. la_eel n provided i. Exec:ative Onler No. 11246 of Sept_her 24, 1965. or by nI.. rep1ati0ll or order of tile Secnlt.ry of Labor, or a. paoYided by L.w. (&) The COllI, ... will iaclude the provisio.. of till. Equal Opportuity (Feder.ly Aaa.lated COlIatnaction) clause in every .,.... ,,1nIct or pwclaa.. order, 11II1... exellpted by tile ruin, replatioaa, Of "" ,.., , 01 tile Secr.wy of Labor I i_ed purauat to Section 204 of Execlltive Order No. 11246 of SepteUer 24, 1965, 10 thlt sack proviaion. will be bindinc upon eecla sacla aabc:oatrac:tor or _dor. The con,. ..., will t.e .ach action with.", ..1 to any nbcolItract or ,I" ;.. Ie order _ tile Farmers 110.. AdaIIalatr.tion .,y direct a. . __ of e..orcin& such proYiIiou. ind_dia& Unctionl for ',. .",.ileace: I3silIIII. lIauIr, tItat in the eveet the contractor becomes involwcl in. or Ie tltreateaeel with. Utiptlon witll . ..lIcoatractor or veador _ a rel81t of lIIICh direction by the F.~. U- Adadnlatratioll, tile c:oatrac:tor .., reqHIt tIte United Stat.. to eater into acla Utiption to protect tIae iat... 01 tile United Stat... 2. To be bound by the proviaionl of tile Equal Opportuity C~ ia conatnactioa work perfonled by Recipieat 8IId paid for in wlloie or in part with tile .d of lIIICh f1a.claI ....1It~, . 3. To notify all psoapective .. ,," .1orI to Ille tile ~ 'COIIpll88Ce Stat.eot', ,Fona FHA 400-6, witll theu bids. 4. Fonn AD-425, laatnactioal to CoIltractora, wiD KCClIIfIay tile aatk:e of .nn1 of tile coetrac:t. . . Bid condition. for aU _.... F..... uti Fadera11y ....... coeatnactioll coatIKtl reqaiJe iaclulllon of the I"",." ate "HoIIIetOWll" or "."''' pu. afB1MIive IICtioa ... .... ..,.,... opportaity reqDireMllt.. All blddera DlUat colllply witll tile bid COIlditioa. cOlltailed ia the illYitatiOll to be coe_deNd retpoaaible bldd.. .d hetace eUpble fOf tile .~ anl. S. To lNiat .d ..'.1 ,_,. I activ_y witla tile F...... IIoaIe AdaIialstrstion uti the Secret.,. in obtainin& the compbance of COIltractors _ abcoatlllCtor. with tile plO'lision. of tile Ecpal Opportlmty Cia.. .4 tlte said nles, recal.tions, ,8IId orders to obt_n .d fanll" to tile V.... Holse Adlliaistrltloa ... the Secretary, FOfll AD-S60, Certification of NonleFepted PeciUties, ro submit tile Monthly Employmeat Utilization Report. Form ~2S7. u required and such ~ther infonnation u tIley may require the IlI-pe. I'd.. ol such compliaace. and to odt,., , ~ . USIIt the Parmer. Home Adminlltta- rion in the dlacharp of ita primary responsibility for aecurina cOIIlpliaace. 6. To refrain flOlll eateria& Into uy c:oatrac:t, or ut.aioa Of otber .odiOcatioa of a contract, I1Ibject to I1Ich Ellecutive Order witlt a c:oatractor deber:re4 flOlll G. , "., lOt contncta or f......' ....... coaatruction ..,,,. .la pllHHt to Part 11. Subpart D. of such bec:atlve Onler or to prior aatllority; .d to c:aay ont auch aaction..d peaelti. for vlolation of the provision. of the Equl Opportulllty Cr.. aa ..y be illpOSed apOlI c:GIIttactcw. .4 sabcon... ..." by tile Fafllers Home AdIIIlaistration or the Secretary pv....t to auch SIIbpart D. 7 That if Reclpieat fella or refusea to cotIIPly with tbeae W1c1ertakinc.. tbe Fanners HOlle Adndniatntion lIIay take any or ';'1 of the followiac actio..: Ca) caacel, t.-ute, or uapead said fiaeadal .uistaace ia wiIole or in part; (b) refrain from eJtendinc any further .Niatnee under the PJOCfSIII illYOlvecl unW _ti_tory naunnce of fatare CODIpUaac:e lias been received flODl Recipieot; .d (c) refer the c.se to the Office of Equal Opportualty, U. S. D."".., ent of Acnculture for a.... ...~_ate action. Witneas the due ellecutioa hereof by Recipient on this, the date .flrst above writteo. Recipient Recipient Northwest Water and Sewer District I (CORPORATE SEAL) .~__l Attest: .:r '(I) G \ By ~/~~ -- ,/ - ...... ....... l:t."\.L~,-,,, ,\.... ~r Chairman .- . ,)r- Position 5 .- USDA-FmHA FORM APPROVED Fonn FmHA 1942-41 OMB NO, 0575-0015 (Rev. 1-90) LOAN RESOLUTION (Public Bodiea) A RESOLUTION OF TIff: Board of COlDIIIissioners OF 11IE Northwest Water and Sewer District of Harnett County AunlORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OF ACQUIRING. CONSTRUCTING. ENLARGING. IMPROVING, AND/OR EXTENDING ITS Water Distribution System F ACIUIY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS. it is necessary for the Northwest Water and Sewer District of Harnett County (l'lllIIIc Body) (herein after called Auociation) to ralse a portion of the cost of lUch undertaking by illSlWlce of its bonds in the principal amount of $1.604.000.00 purlUanttotheprovisionsof Local Governaent Bond Act (GS. 159-43. EtSea) ; and WHEREAS. the Auociation intends to obtain llliltance from the Farmers Home Adminiatrltlon, United States Department of Agri- culture. (herein called the Government) Icti.., under the provisions of the Consolidated Farm and Rural Development Act (1 V.S.C. 1921 et seq.) in the plannlng, flnancinl, and ...pervision of...ch undertaking and the purchasing of bonds lawfuUy issued, in the event that no other acceptlble purchuer for ...ch bonds Is found by the Auocletion: NOW llIEREFORE. in consideration of the premises the A..... L,tion hereby resolves: 1. To have prepared on its behalf md to Idopt an ordJnance or resolution for the issuance of its bonds containin~ such items and in such fonns u are required by State statutes md as are agreeable and acceptable to the Government. 2. To refinance the unpaid balance. Ia whole or in part, of ita bonds upon the r::!tuest of the Government if at any time it shaD appear to the Government that the Auociation is Ible to refinance Ita bon . by obtaining I loan for such J'urposes from responsible coopentive or private sources at reasonable rates and tenns for loan. for similar purposes an periods of time as required by section 333(c)of said Comolidated Fann and Rural Development Act (1 U.S.C. 1983(c)). 3. To provide for. execute. and comply with Fonn FmHA 4()().4. "Assurance 4...".lnt:' and Fonn FmHA400-1, "Equal I Opportunity 4.......ent." inclUding an "Equal Opportunity Clause." which clause is to be Incorporated in, or Ittached u a rider to, each construction contract and ...bcontract involving in excess of $10,000. 4, T" 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 fund. 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 perfonnance of any cov- enant or agreement contained herein or in the instrumenta incident to maldna or insuring the loan. the Govemnment 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 AJsociation (payable from the Source of funds pledaed to pay the bonds or any other lepUy.ennisslble source). incur and pay reuonable expellllls for repair. maintenance. and operation of the facility and such 0 r reasonable expemes u may be n...... . / to cure the cau. of default. and/or (c) take possession of the facility, repair, maintain. and operate or rent It. Default under the d:lI1ona of this resolution or any Instrument incident to the matina or illlUrina of the loan may be conatrued by the ernment to c:ortItitute default under any other instrument held by the Government and executed or IllUmed by the Auociation. and default under any lUch instrument may be construed by the Government to constitute default hereunder. 6. Not to sell. transfer. Ie.. or oth... I (. . encumber the facility or any portion thereof, or interest therem. or permit others to do so wlthont th.. orinr written co...nt of the Government. 7. Not to defelle - the bonds, or to b. ..,. II money, enter Into any contract or agreement, or otherwise incur any liabilities for any purpote in connection with the facility (exclusive of nonnal maintenance) without the prior written consent of the Government if such ~n~~inI would involve the source of funds pledged to pay the ~onds, 346 8. To place the proceeds ot the bonds on deposit In an account and In a manner approved by the Government. Funds may be deposited in institutions Insured by the State or Federal Government or invested In readUy marketable securities backed by the fun faith and credit of the United States. Any r...... .... e from these accounts wlli be considered IS revenues of the system. 9, To comply with aU applicable State and Federal laws and regulations and to continually operate and maintain the facility in good condition. I 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 cayments on the loan. Revenue cannot be used to pay any expenses which are not directly incurred for the facl1lty ced by FmHA. No free service or use of the facility wlli be permitted. 11. To acquire and maintain such Insurance and fidelity bond coveraae IS may be required bv the Government. 12. To establilh and maintain suc:h boob and .. ... i;:S relatin& to the 'operation of the facUlty and Its fmancial affairs and to provide for required audit thereof IS 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 tbne require. 13. To provide the Government at aU reasonable thnes access to aU books and records relating to the facUlty and access to the property of the system so that the Government may ascertain that the Association Is complying with the provisions hereof and of the Instruments incident to the malting or insuring of the loan. 14. That If the Government requires that a reserve account 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 dama. to the facUlty caused by catastrophe. (b) Repairing or replacing short-lived assets. (c) Making extensions or Imp.... I......ents to the facUity. Any time funds are disbursed from the reserve account, additional deposits will be required untl1 the reserve account has reached the required funded level. IS. To provide adequate service to aU persons within the service area who can feasibly and legally be served and to obtain FmHA's concurrence prior to refUsing new or adequate services to such persons. Upon failure to provide services which are feasible and legal, such person shaU have a direct right 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 facUity's construction or operation. 17. To accept a grant in IIJI amount not to exceed S 1.674.000.00 under the terms offered by the Government; that the Chairman and Clerk of the Association are hereby authorized and empowered to take all action necessary or appropriate in the execution of aU 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 hereof, these provisions shall be construed as controlling between the Association IIJId the Government or assignee I The vote was: Yeas 5 Nays 0 Absent 0 IN WITNESS WHEREOF, the Board of Commissioners of the Northwest Water and Sewer District of Harnett County has duly adopted this resolution and caused it to be execu ted by the officers below in duplicate on this 4th day of June , 19.22..... Northwest Water and Sewer District 7{~ Jt /H.u.ro.J - (SEAL) By A""'~C~ '-I,J. '-{/'~'HV-<I Titl.. Chairman TIt!.. Clerk 0 .3- CERTIFICATION TO BE EXECUTED AT LOAN CLOSING I, the undersigned, as Clerk of the Northwest Water and Sewer District hereby certify that the Board of Commissioners of such Association is composed of 5 members, of whom , constituting a quorum. were present at a meeting thereof duly called and held on the 4th day of June , 19 .2.Q...; and that the foregoing resolution was adopted at such meeting by the vote shown above, I further certify that as of June 25. 1990 the date of closing of the loan from the Farmen Home Administration, said resolution remains in effect and has not been rescinded or amended in IIJIY way. Dated, this 25th day of June . 19...2i. 4~ -r d {~1lLL.- ~' I Title Clerk .U.S.OPO: Il18O-o-717 -014/22842 347 DOCUMENT NO.8. RESOLUTION I Be it Resolved by the Board of Commissioners of the County of Harnett, sitting as the governing body of the Northwest Water and . Sewer District of Harnett County, that the Loan Resolution, Form PmHA 1942-47 adopted by the Board March 15, 1988, is hereby rescinded. Duly adopted the 4th day of June, 1990 upon motion made by commissioner Collins , seconded by Commissioner Smith and adopted by the following vote: AYES 5 NOES 0 ABSTAINED 0 ABSENT 0 BOARD OF COMMISSIONERS OF THE ",'...'u~i1...A OF }lAR..i1.:..... , sitting as the governing body of the Northwest Water and Sewer District of Harnett County ~);; ~~ - By: 1.1 yd I . Stewart, Chairman ATTEST: I '1,C~./ '{ ,( I, 't./\ ~ ( "-7 < Vanesea W. Young, cl'lrk. 1t:P the Board and of th Northwest Water and Sewer District of Harnett County DOCUMENT NO.9. . "SOLUTIO. AU'.rJIORIII.G BDCftIO. or D'DR PUltCIWIB COIl'lltACT WIft ftB IIOR'fIIUH MftROJIOLl'1U 'DDR DlSftI~ or II.UUIBft ,..Dmrn AlII) IIARIIft'r ,..DUII"ft WHEREAS, the Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County (hereinafter "District"), has examined the Water Purchase Contract between the Northeast Metropolitan Water District of Harnett County, the County of Harnett (hereinafter "County") and the District, attached hereto as Exhibit "AN; and WHEREAS, District is in need of treated water for its customers as fully described in said Water Purchase Contract and I desires to enter into said contract as provided; NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, that: 1- Southwest Water and Sewer District of Harnett County is hereby authorized to and shall enter into the Water Purchase Contract attached hereto as Exhibit "A". 2. The Southwest Water and Sewer District of Harnett County and its officers and agents are hereby directed to execute said Water Purchase Contract. 348 , Duly adopted this 4th day of June, 1990, upon motion made by Commissioner Shaw seconded by Commissioner , Hudson and passed by the following vote: AYES 5 NOES 0 ABSTAINED 0 Aax...... 0 HARNETT COUNTY BOARD OF COMMISSIONERS I sitting as the governing body of the SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT Cv'u~,,,,.1. By: ~J )d~~~' L yd/G. Stewart, Chairman ATTEST: ~ 'ILl ~ t:l.,,~ ,. J..-y..f/ Vanessa w. Young, erkJto the Board and of t e Southwest Water and Sewer District of Harnett County EXHIBIT A NORTH CAROLINA WATER PURCHASE CONTRACT HARNETT COUNTY THIS CONTRACT for the sale and purchase of water is entered into a8 of the day of , 19 -' between the NORTHEAST METROPOLITAN WATER DISTRICT OF HARNETT COUNTY (hereinafter "Northea8t Metro"), and the COUNTY OF HARNETT (hereinafter "County"), said Northeast Metro and County I shall be collectively referred to herein as "Seller" and the SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT, (hereinafter "Purchaser") !! ! 1: !i ! ~ ~ ! 1: !ir THAT WHEREAS, the Purchaser is a County and Water and Sewer District, duly organized and existing pursuant to the provisions of Article 6, Chapter 162A of the North Carolina General Statutes and by that certain Resolution dated October 17, 1988 and adopted by the Harnett County Board of Commissioners entitled "Resolution Creating the Southwest Water and Sewer District of Harnett County", and WHEREAS, Northeast Metro is a metropolitan water district organized and existing under the laws of the State of North Carolina, and WHEREAS, County is a body politic organized and existing under the laws of the State of North Carolina, and WHEREAS, the Purchaser is organized and established for the purpose of constructing and operating a water supply distribution system serving water users within the area described in plans now on file in the Office of the Purchaser and to accomplish this purpose, the Purchaser will require a supply of treated water, and WHEREAS, Northeast Metro owns a water production system and a water supply distribution system, and County, is operator thereof under that I certain Lease dated May 30, 1980, entered into between Northeast Metro and County, and WHEREAS, the water production system and water supply distribution system of Seller (Northeast Metro and County as de8cribed above) has a capacity currently capable of serving the present customers of the Seller's system, the estimated number of water U8ers to be served by the said Purchaser as shown in the plans of the system now on file in the office of . the Purchaser, and 349 WHEREAS, by Resolution entitled "Resolution Authorizing Execution of Water Purchase Contract with the Southwest Water and Sewer District of I Harnett County" , duly adopted by the District Board of the Northeast Metropolitan Water District of Harnett County at its meeting on the sale of said water to the Purchaser as provided herein , was approved, and the execution of this contract by Northeast Metro was duly authorized, and WHEREAS, by Resolution entitled "Resolution Authorizing Execution of Water Purchase Contract with the Southwest Water and Sewer District of Harnett County", duly adopted by the Harnett County Board of Commissioners at its meeting on , the sale of said water to the Purchaser as provided herein was approved, and the execution of this contract by County was duly authorized1 and WHEREAS, by Resolution entitled "Resolution Authorizing Execution of Water Purchase Contract with the Northeast Metropolitan Water District of Harnett County and the County of Harnett", duly adopted by the Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County at its meeting on , the purchase of said water from the Seller as provided herein was approved, and the execution of this contract by Purchaser was duly authorized, NOW THEREFORE, in consideration of the foregoing and the mutual I agreements hereinafter set forth, A. THE SELLER AGREES: 1. (Quality and Quantity) To furnish the Purchaser at the point of delivery hereinafter specified, during -the term of this contract or any renewal or extension thereof, potable treated water meeting applicable pur! ty standards of the Division of Health Services, Department of Human Resources of the State of North Carolina, in such quantity as may be required by the Purchaser not to exceed ten million, five hundred thousand (10,500,000) gallons per month. 2. (Point of Delivery and Pressure) That water will be furnished at a reasonable constant pressure calculated at fifty (50) pounds per square inch from an existing twelve (12) inch main supply at a point located at or near the intersection of State Road 1141 and State Road 1116 within a waterline and/or related appurtenance easement to be acquired by Purchaser. If a greater pressure than that normally available at the point of delivery is required by the Purchaser, the cost of providing such greater pressure shall be borne by the Purchaser. Emergency failures of pressure or supply due to main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall I excuse the Seller from this provision for such reasonable period of time as may be necessary to restore service. 3. (Metering Equipment) To furnish, install, operate, and maintain at its own expense at point of delivery, the necessary metering equipment, including a meter house or pit, and required devices of standard type for properly measuring the quantity of water delivered to the purcha.er and to calibrate such metering equipment whenever requested by the Purchaser but not more frequently than once every twelve (12) months. A meter registering not more than two percent (2\) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the three (3) 350 months previous to such test in accordance with the percentage of inaccuracy found by such tests. If any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water delivered in the corresponding period immediately I prior to the failure, unless Seller and Purchaser shall agree upon a different amount. The metering equipment shall be read on the first day of each month. An appropriate official of the Purchaser at all reasonable times shall have access to the meter for the purpose of verifying its readings. 4. (Billing Procedure) To furnish the Purchaser not later than the fifth (5) day of each month, with an itemized statement of the amount of water furnished the Purchaser during the preceding month. B. THE PURCHASER AGREES: 1. (Rates and Payment Date) To pay the Seller, not later than the tenth (10) day of each month, for water delivered in accordance with the following schedule of rates: a. One thousand five hundred seventy-five dollars ($1,575.00) for the first one million five hundred (1,500,000) gallons, which amount shall also be the minimum rate per month. b. One dollar and five cents ($1. 05) per one thousand (1000 ) gallons for water in excess of one million five hundred thousand (1,500,000) gallons. c. It is agreed that the minimum rate per month as stated in (a) above shall not be applicable unt~l six (6) months after the last I notices for connection have been mailed to potential water customers of the Purchaser by the Harnett County Department of Public Utilities, and up to said time the minimun rate per month becomes applicable, Purchaser shall pay only for such water as is delivered to Purchaser at the rate of $1.05 (one Dollar and five cents) per 1000 (one thousand) gallons. 2. (Connection Fee) To pay as an agreed cost, a connection fee to connect the Seller's system with the system of the Purchaser, a sum equal to the amount of the cost of the installation of the meter, meter vault and related appurtenances and the cost of the laying and installation of the necessary pipeline or pipelines to connect the system of the Seller to the system of the Purchaser at the boundary of the Southwest Water and Sewer District 3. (Maintenance of Certain Lines) To maintain all water distribution pipelines which connect the Seller's system to the system of the Purchaser, said line or lines being located between the meter facility (described in paragraph A(3) above) and the boundary of the Southwest Water and Sewer District. C. It is further mutuallv aQ'reed between the Seller and the Purchaser as follows: 1. (Term of Contract) That this contract shall extend for a I term of forty (40) years from the date of the initial delivery of any water as shown by the first bill submitted by the Seller to the Purchaser and, thereafter may be renewed or extended for such term, or terms, as may be agreed upon by the Seller and Purchaser. 2. (Delivery of Water) That thirty (30) days prior to the estimated date of completion of construction of the Purchaser's water supply distribution system, the Purchaser will notify the Seller in writing the date for the initial delivery of water. 351 3. (Water for Testing) When requested by the Purchaser, the Seller will make available to the contractor at the point of delivery, or other point reasonable close thereto, water sufficient for testing, flushing, and trench filling the system of the Purchaser during I construction, irrespective of . whether the metering equipment has been installed at that time, at a flat charge of one dollar and five cents ($1.05) per one thousand (1000 ) gallons which will be paid by the contractor or, on his failure to pay, by the Purchaser. 4. (Failure to Deliver) That the Seller will, at all times, operate and maintain its system in an efficient manner and will take such action as may be necessary to furnish the Purchaser with quantities of water required by the Purchaser. Temporary or partial failures to deliver water shall be remedied with all possible dispatch. In the event of an extended shortage of water, or the supply of water available to the Seller is otherwise diminished over an extended. period of time, the supply of water to Purchaser's consumers shall be reduced or diminished in the same ratio or proportion as the supply to Seller's consumers is reduced or diminished. S. (Modification of Contract) That the provisions of this contract pertaining to the schedule of rates to be paid by the Purchaser for water delivered are subject to modification at the end of every one (1) year period. Any increase or decrease in rates shall be based on a demonstrable increase or decrease in the costs of performance hereunder. I Such costs shall not include increased capitalization of the Seller's water distribution system except as such costs relate directly to increasing the capaci ty of services to the Purchaser. Such costs may include increased capitalization of the Seller's water production facility system. Other provisions of this contract may be modified or altered by mutual agreement. 6. (Future Water Transmission and Connection) In the event County and/or Northeast Metro elect to supply and sell water to any customers or other water distribution systems located outside of the boundaries of the Southwest Water and Sewer District of Harnett County and desire to do so by connecting to and transporting water through the water distribution system of Purchaser, it is agreed that County and/or Northeast Metro may, at no cost to either, connect to and transport water through the water distribution system of Purchaser for the purpose of suppling and selling water to customers or other water distribution systems outside of the Southwest Water and Sewer District, whether within the County of Harnett or otherwise. In the event County and/or Northeast Metro should elect to supply and sell water as stated herein, County and/or Northeast Metro shall cause a meter to be installed at the connection point and the cost thereof shall not be borne by Purchaser. 7. (Regulatory Agencies) That this contract is subject to such I rules, regulations, or laws as may be applicable to similar agreements in this State and the Seller and Purchaser will collaborate in obtaining such permits, certificates, or the like, as may be required to comply therewith. 8. (Misce llaneoul) That the construction of the water supply distribution system by the Purchaser is being financed by a loan made or insured by, and/or a grant from the United Statel of America, acting through the Farmers Home Administration of the United States Department of Agriculture, and the provisions hereof pertaining to the undertakings of the Purchaser are conditioned upon the approval, in writing, of the State Director of the Farmers lIome Administration. 352 9. (Successor to the Purchaser) That in the event of any occurrence rendering the Purchaser incapable of performing under this contract, any successor of the Purchaser, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the I Purchaser hereunder. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this contract to be duly executed in triple counterparts, each of which' shall constitute an : original. NORTHEAST METROPOLITAN WATER DISTRICT OF HARNETT COUNTY By: Timothy H. McKinnie Attest: Chairman of the District Board Vanessa W. Young, Secretary (SEAL) COUNTY OF HARNETT By: Lloyd G. Stewart, Chairman Attest: Harnett County Board of Commissioners Vanessa W. Young, Clerk (SEAL) I . 6 . DOCUMENT NO. 10. RBSOLU'!IOB AU'RORIIIBG BUcmIOB or MallAGBMBft co~C'.r WID BAL,.,.....". COUftY WHEREAS, the Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County (hereinafter -Board-), has examined the Management Contract between the County of Harnett (hereinafter -County-) and the Southwest Water and Sewer District of Harnett County, attached hereto as Exhibit -A-; and WHEREAS, the Board desires for the District to enter into said contract as provided; NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, that: 1. The Southwest Water and Sewer District of Harnett County is hereby authorized to and shall enter into the Management Contract attached hereto as Exhibit -A-. I 2. The appropriate officers of said District are hereby directed to execute said Management Contract. Duly adopted this 4th day of June, 1990, upon motion made by Commissioner Collins , seconded by Commissioner Shaw and passed by the following vote: AYES 5 NOES 0 ABSENT 0 ABSTAINED 0 HARNETT COUNTY BOARD OF COMMISSIONERS sitting as the governing body of the S'''''u,u'.j..:.ST WATER AND SEWER DISTRICT n1P RJl.DU1l!'I"I' C"...I,.,.. yo - -- ---.----- 353 Exhibit A NORTH CAROLINA MANAGEMENT CONTRACT HARNETT COUNTY I THIS CONTRACT, made and entered into this the day of , 1990, by and between THE COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina (hereinafter called "County") and THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, a municipal corporation organized and existing pursuant to the provisions of Article 5, Chapter 152A of the North Carolina General Statutes (hereinafter called "District"); WIT N ESE T H : THAT WHEREAS, the County is lessee and operator of a water production system and a water supply distribution system owned by the Northeast Metropolitan Water District of Harnett County; and WHEREAS, County as lessee of said systems has created a Public Utility Department which conducts the operation of said systems; and WHEREAS, the District was organized and established for the purpose of constructing and operating a water supply distribution system to serve water users within the District as described in plans now on file in the Office of the District; and I WHEREAS, the water supply distribution system of the District will be constructed with the use of Local funds; and WHEREAS, the Farmers Home Administration of the United States Department of Agriculture has agreed to loan the District sufficient funds to enable the District to finance the construction of said water supply distribution system; and WHEREAS, the County's Public Utility Department is fully capable to conduct the operation and management of the water supply distribution system of the District; and WHEREAS, the County and the District have agreed to enter into this contract for the operation and management of the water supply distribution system of the District as a County operated system on a continuing basis and especially for and during the period of the existence of the Farmers Home Administration loan to the District. NOW, THEREFORE, the parties do contract and agree each with the other as follows: l. That the District's water distribution supply system referred to above shall be operated and managed by the County's Public Utility Department as a County operated water distribution system on a continuing basis and I especially for a period beginning as of the execution of this contract and extending until that certain loan referred to above made by the Farmers Home Administration to the District has been paid in full, being a period of at least forty (40) years. 2. That the Harnett County Board of Commissioners, sitting in the capacity as the governing body of the County and/or as the governing body of the District, shall establish and set the rates of charges for the purchase 354 of water and for such other fees, charges, and penalties as required for the operation of the water distribution system, with proper cost accounting procedures to appropriately reflect the cost of these facilities operated by the County Public Utility Department relative to the operation of other utility enterprises which are I or may be carried on by the County Public Utility Department. Further, the Harnett County Board of Commissioners, in the capacities stated above, shall charge such rates for the users of said water distribution system as will appropriately yield sufficient funds to meet operation and maintenance expenses and to pay and retire the long term debt of the Farmers Home Administration to the District. 3. This contract shall be a continuing contract relative to the furnishing of the essential water utility services for the people of the District and this contract shall exist and continue until the District and the County shall mutually modify or terminate this contractual arrangement. 4. That the Harnett County Board of Commissioners agrees to create an Advisory Council to lend assistance with input and advice as to the operation and maintenance of the aforesaid water distribution system by the Harnett County Board of Commissioners as the governing body of said District. I 5. That the County shall be entitled to fund or cause to be funded the construction of any water line to be connected to the District's system as an extension within or without the boundaries of the District for the purpose of serving needy users with water utility services as the same shall be determined by the Harnett County Board of Commissioners and that the rates chargeable to such persons (users) shall be equitably set to properly reflect cost of operations and maintenance of water production and supply and further that in the event it shall become necessary for the District to levy a tax for the purpose of funding bonded indebtedness of the District then in such event such rates of any person (user) outside the boundaries of the District shall be charged a greater user fee (rate) as will be equivalent to such needed property tax as may be levied; provided, if a tax levy is made, then such user charge for out-of- district users shall not be less than 150\ of the user charge of users of the District. It is understood and agreed that the District shall have no obligation to I extend its water lines outside of the District's boundaries. 6. That the County will manage and operate the water supply distribution system on an annual budget with the setting of rates on an annual basis as approved by the District's governing body with proper input and advice from the Advisory Council, which budget shall provide and set forth the handling of the funds such that a reserve fund, depreciation fund, debt payment fund, and surplus fund for the District shall be distinguishable, and further ~_._----~~---~- - ---_._~----. 355 that the County shall maintain a system of accounts for the County Utility Department which will appropriately I account for the various operations of the Utility Department, specifically so that all costs relative to the operation of the water supply distribution system will be separately stated; the County shall further maintain insurance and bonds as required by state law and that the County shall properly contract with a certified public accountant for annual audits of the Utility Department and that further the County shall comply with all federal, state and local laws and regulations relative to the operation of the water supply distribution system. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as authorized by the Harnett County Board of Commissioners sitting as the governing body of the County and the District, all the day and year first above written. THE COUNTY OF HARNETT By: Lloyd G. Stewart, Chairman Harnett County Board of Commissioners I ATTEST: Vanessa W. Young, Clerk SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY By: Lloyd G. Stewart, Chairman Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County ATTEST: Vanessa W. Young, Clerk to the Board and of the Southwest Water and Sewer District of Harnett County I 356 DOCUMENT NO. 11. RBSOLftIOR APPROVIRG PLUlS I FOR CORSftU=IOR OP 1IAHR DISftIBftIOR S'fSftM - 8OU'.fIIIIBS!r 1IAHR UD S.... DISftI= OP IUUUIBft ......UJI!r'f WHEREAS, the Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County (hereinafter the MBoardM) desires to move forward towards construction of the water distribution system in the District; and WHEREAS, the District engineers have submitted plans to the District for the said water distribution system; and WHEREAS, the Harnett County Public Utilities Department has reviewed said plans, and reports that the same are acceptable, and recommends that said plans be approved by the Board; ;and WHEREAS, the Board now desires to approve said plans; NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, that: The plans and specifications for the water distribution system of the Southwest Water and Sewer District of Harnett County submitted to said District by the District's Engineers and I designated as Black & Veatch Project No. 15973.300 shall be and are hereby approved, subject to any minor changes necessary to implement construction of said water distribution system. Duly adopted this 4th day of June, 1990, upon motion made by Commissioner Shaw , seconded by Commissioner Collins and passed by the following vote: AYES l\ NOES 0 ABSTAINED 0 ABSENT 0 HARNE'1"l' COt....~..J. BOARD OF COMMISSIONERS sitting as the governing body of the SOUTHWEST WATER AND SEWER DISTRICT OF HARNE'1"l' CUU"~J. By: ~ 1; 4!a.A . o G. Stewart, Chairman AT'l'EST: ~ -vJ. iAUAr(. Vanessa W. Young, ~erk 0 the Board and of the S thwest Water and Sewer District of Harnett County I