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HomeMy WebLinkAbout03061989 (2)265 NORTHWEST WATER $ SEWER DISTRICT MEETING, MARCH 6, 1989 CALL TO ORDER RESOLUTION RE: REAPPOINTMENT OF CLERK RESOLUTION RE: AMENDMENT TO ENGINEERING AGREEMENT The Harnett County Board of Commissioners sitting as the governing body of Northwest Water and Sewer District of Harnett County met March 6, 1989, 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. Chairman Stewart called the meeting to order at 11:30 a.m. John M. Phelps, II, Public Utilities Attorney, presented a resolution regarding reappointment of Clerk and Finance Officer for the District. 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 March 6, 1989, as document No. 1. John M. Phelps, II, Public Utilities Attorney, presented a resolution authorizing an amendment to engineering services agreement. Commissioner Collins 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 dated March 6, 1989, as document No. 2. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented a resolution WATER USER ACRE. regarding water user agreements and connection fees. Commissioner Smith moved $ CONNECTION FEE for the adoption of the resolution. Commissioner Collins seconded the motion and it passed with a unanimous vote. The resolution is copied at the end of these minutes dated March 6, 1989, as document No. 3. RESOLUTION RE: RULES F, REGS. John M. Phelps, II, Public Utilities Attorney, presented a resolution establishing rules an regulations for the District. 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 at the end of these minutes dated March 6, 1989, as document No. 4. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented a resolution EXECUTION OF authorizing execution of management contract. Commissioner Collins moved for MANAGEMENT CONT. 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 March 6, 1989, as document No. 5. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented a resolution FACILITIES CONT. authorizing facilities contract with the Town of Fuquay- Varina. Commissioner TOWN OF F -V Collins 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 dated March 6, 1989, as document No. 6. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented a resolution PLANS FOR CONT. approving plans for construction of water system. Commissioner Collins moved OF WATER SYS. 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 March 6, 1989, as document No. 7. ADJOURNMENT There being no further business, the Harnett County Board of Commissioners sitting as the governing body of Northwest Water and Sewer District of Harnett County duly adjourned at 11:45 a.m. Llo Stewart, Chairman 16 A164(e)Cia Kay S. 1 Blanchard, Recording Secretary animexi Vanessa W. Young, Clekk to he Board 266 DOGUMENT.NO RESOLUTION REGARDING REAPPOINTMENT OF VANESSA W. YOUNG AS CLERK AND FINANCE OFFICER OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY WHEREAS, pursuant to the provisions of Article 6, Chapter 162A of the General Statutes of North Carolina, the Harnett County Board of Commissioners (hereinafter "the Board ") did, on March 23, 1987, create the Northwest Water and Sewer District of Harnett County; and .WHEREAS, The Board now sits as the governing body of the Northwest Water and Sewer District of Harnett County (hereinafter "the District "); and WHEREAS, Vanessa W. Young currently serves as Clerk to the Harnett County Board of Commissioners and of the District and as Finance Officer for Harnett County and of the District; and WHEREAS, the Board desires to acknowledge its intention that as Clerk to and Finance Officer for Harnett County, Mrs. Young shall continue to serve as the Clerk to and for the Northwest Water and Sewer District and as Finance Officer for the same. NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, that: Vanessa W. Young as Clerk to and Finance Officer for Harnett County shall be and hereby is reappointed Clerk and Finance Officer of the Northwest Water and Sewer District of Harnett County to serve in Duly adopted this the 6th day of March, 1989, upon motion made by Commissioner Collins , seconded by Commissioner Shaw , and passed by the following vote: Ayes Noes 0 Absent 0 Abstained 0 ATTEST: Vanessa W. Y ng,. Clerk to the oard and of the Northwest Water and Sewer District of Harnett County BY: Llo HARNETT COUNTY BOARD OF COMMISSIONERS SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY Stewart, Chairman 267 DOCUMENT NO. 2. RESOLUTION AUTHORIZING AMENDMENT TO AGREEMENT FOR ENGINEERING SERVICES (NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY) WHEREAS, the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County (hereinafter the "Board "), has examined the "Amendment to Agreement for Engineering Services" between the County of Harnett, the Northwest Water and Sewer District of Harnett County and Black & Veatch, Inc., attached hereto as Exhibit "A "; and WHEREAS, the Board desires for said Northwest Water and Sewer District of Harnett County to enter into said "Amendment to Agreement for Engineering Services" as set forth, NOW, THEREFORE, BE IT RESOLVED, by the Harnett County Board of Commissioners sitting as the governing body of the Northwest Water and Sewer District of Harnett County that: 1. The Northwest Water and Sewer District of Harnett County is hereby authorized to and shall enter into the "Amendment to Agreement for Engineering Services" attached hereto as Exhibit "A ". 2. The appropriate officers of the Northwest Water and Sewer District of Harnett County are hereby directed to execute said "Amendment to Agreement for Engineering Services ". Duly adopted this 6th day of March, 1989, upon motion made by Commissioner Collins Smith , seconded by Commissioner and passed by the following vote. Ayes 5 Noes 0 Absent 0 Abstained 0 ATTEST: Vanessa W. Young,j /Clerdt to the Board and of the orthwest Water and Sewer District of Harnett County HARNETT COUNTY BOARD OF COMMISSIONERS, sitting as governing body of the Northwest Water and Sewer District of Harnett County BY: /V L o d 9' Stewart, Chairman Exhibit "A" AMENDMENT TO AGREEMENT FOR ENGINEERING SERVICES This AMENDMENT. TO AGREEMENT FOR ENGINEERING SERVICES is made and entered into this day of , 1989, by and between THE COUNTY OF HARNETT (hereinafter sometimes referred to as "County ") , the NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter sometimes referred to as "District ") and BLACK & VEATCH, INC. (hereinafter sometimes referred to as "Engineer "). W I T N E S S E T H: THAT WHEREAS, an "Agreement for Engineering Services" dated November 18, 1986 was entered into between County, for the then proposed Northwest Water and Sewer District of Harnett County, (said County therein being referred to as "Owner ") and Engineer relating to the furnishing of engineering services by Engineer with respect to said Northwest Water and Sewer. District of Harnett County; and DOCUMENT NO. 3. WHEREAS, it was the understanding of County and Engineer that services furnished pursuant to said Agreement should relate to the providing of water services for the said Northwest Water and Sewer District of Harnett County; and, WHEREAS, the services so furnished thereunder have related to the providing of water services as described and as contemplated by County, Engineer and District; and WHEREAS, it is the desire of the parties hereto to amend said Agreement as hereinbelow provided so as to clarify the contracting parties therein named. NOW THEREFORE., it is agreed by County, District, and Engineer that: The words "Harnett County for the proposed Northwest Water and -Sewer District of Harnett County" designating the "Owner" as set forth in the above described "Agreement for Engineering Services" shall be and the same hereby are deleted and that in lieu thereof the words "Northwest Water and Sewer District of Harnett County" shall be and the same hereby are substituted and inserted, thereby designating "Owner" therein as the said Northwest Water and Sewer District of Harnett County. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Amendment to Agreement for Engineering Services in triplicate originals on the respective dates indicated below. Executed by County, this day of , 1989. COUNTY OF HARNETT RESOLUTION REGARDING WATER USERS AGREEMENTS AND INITIAL HOOK UP CONNECTION FEES (NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY) WHEREAS, on March 23,'1987 the Harnett County Board of Commissioners created the Northwest Water and Sewer District of Harnett County (hereinafter the "District "); and WHEREAS, since the date of the creation of the District the Harnett County Board of Commissioners, sitting as the governing body of the District (hereinafter the "Board ") has moved.forward with plans to construct a water distribution system within the District and has Caused studies to be completed regarding the financing of the costs of such system; and WHEREAS, it was recommended by the consulting engineers for the District in their various reports to the Board that an initial hook up or reduced tap -on or connection fee be charged to water customers in the amount of One Hundred ($100.00) Dollars, the same to be used to raise the required local funds to finance the costs of the system; and WHEREAS, said tap -on or connection fee was set in an amount less than the anticipated post construction fee for the same, in an effort to provide an incentive to the people in,the District to contract for the District's water service; and 269 WHEREAS, in order to obtain a sufficient number of customers within the District so as to make construction of a water system therein economically feasible, the District has utilized the "Residential Water Users Agreement" attached hereto as Exhibit "A "; and WHEREAS, it is believed that a sufficient number of water customers have agreed to purchase water from the District so as to make construction of the system therein economically feasible; and WHEREAS, recently it has become apparent that the water distribution system in the District will most likely be constructed; and WHEREAS, the Board now desires to confirm the use of said "Residential Water Users Agreement" and to authorize the collection of the referenced tap -on or connection fees. NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County that: 1. The Residential Water Users Agreement attached hereto as Exhibit "A" is hereby adopted for use by the District. 2. The early sign -up or initial hook up reduced tap -on fee for the District shall be One Hundred ($100.00) Dollars. Duly adopted this made by Commissioner Collins Smith 6th day of March, 1989, upon motion , seconded by Commissioner and adopted by the following vote: Ayes 5 Noes 0 Absent 0 Abstained 0 Exhibit "A" . RESIDENTIAL WATER USERS AGREEMENT (Initial Hookup - Reduced Rate) User's mailing adddress: Name AMR' PAID RECEIPT NO. Street, Route or P.O. Box RECEIPT NO. City or Town, State, hip PROPERTY NO. CUSTOMER NO. LANDLORD NAME /NO. This Agreement, made and entered into this the day of , 19 , between the Northwest Water and Sewer District of Harnett CountyThereinafter "District ") and (hereinafter "User ") a potential user of the water system owned and operated by the District. W I T N E S S E T H: Whereas, District desires to construct a water distribution system within the District and, Whereas, It Is necessary for District to obtain an adequate number of users before authorizing construction of the water distribution system; and 270 ■ Whereas, User desires to purchase water from the District, and to enter into this Agreement as hereinafter set forth. NOW, THEREFORE, in consideration of the mutual promises herein set forth, it is agreed by District and User as follows: 1. It is mutually understood by User and District that in the event an adequate number of water users for the District is not obtained or for other reasons construction of the water distribution system is not begun or a water distribution line is not available to the User, then neither District nor User shall be bound hereunder. 2. The property which is the subject of this Agreement and to which water shall be supplied as hereinafter provided is described as follows: 3. District agrees to provide a water service connection on the above described property and upon completion of the construction of the system and the commencement of the operation thereof, to provide potable water to the User. 4. User agrees to pay to District the amount of One Hundred ($100.00) Dollars per connection as a tap -on charge, said amount being due after notice to User by District. Notice shall be given by first Blass• mall to the User at the mailing address indicated hereon. In the event that construction of the water distribution system in the District is not begun or a water distribution line is not available to the User, District shall refund the tap -on charge and the provisions of paragraph 13 will become inoperable. 5. User agrees to pay to District the amount of Ten Dollars ($10.00) as a deposit, as required by the District Rules and Regulations and returned without interest as provided by. the Rules and Regulations. Said deposit shall be due 30 days after notice to User by District and such notice shall be given by first class mail to User at the mailing address Indicated hereon. 6. The User grants the District, its successors and assigns, a perpetual easement in, over, under, and upon the above described land with the right to erect, construct, install, lay, and thereafter use, operate, inspect, repair, maintain, replace and remove water lines and appurtenant facilities thereon, together with the right of ingress and egress over adjacent land for the purposes mentioned above. 7. The User shall install and maintain at User's own expense a 3/4 ineh cut -off valve on the User's side of the District's water meter and a serdiee line which shall begin at the meter and extend to the dwelling or place of use. The service line shall connect with the distribution system of the District at the nearest place of desired use by the User, provided the District has determined in advance that the District water system is of sufficient capacity to permit the delivery of water at that point. 8. The User agrees to comply with the requirements of the North Carolina Board of Health that no other present or future source of water will be connected to any water lines, served by the District's system on the date that water is made available to the User by the District. Water charges to the User shall commence on the date that water is made available by the District to the User providing that the plumbing connection has been made, but in no event later than 60 days from said date. 9. The User agrees to pay for water at such rates, time, and place as shall be determined by the District and agrees to the penalties for non - compliance with the above as set out in the Rules and Regulations. 10. The User agrees to abide by the Rules and Regulations of the District as from time to time promulgated by the District or the Harnett County Board of Commissioners.. 11. The District shall purchase and install a cutoff valve and water meter for each service. The District shall own said meter and shall have the exclusive right to use it. 12. The District shall have final jurisdiction on any question of location of any service line connection to its distribution system; shall determine the allocation of water to Users in the event of a water shortage and may shut off water to a User who allows a connection or extension to be made to User's service for the purpose of supplying water to another user. 13. In the event User breaches this agreement by refusing or failing, without just cause, to connect to the District's distribution system as set forth, User agrees to pay District $500.00 liquidated damages or $10.42 p.er month for 48 months; and in the event User transfers title or agrees to transfer title to the real estate, before or after such connection, User agrees that this agreement .shall run with the property title and agrees to advise the new owner and furnish new owner a copy hereof. • 271 DOCUMENT NO. 4. 14. After District has executed this Agreement, a copy shall be provided to User by mailing to the User's address as indicated above. Signed by User this day of , 19 User Witness Signed by District this BY: User day of , 19_ NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY Rodney M. Tart, Director Harnett County Department of Public Utilities Post Office Box 1119 Lillington, North Carolina 27546 RESOLUTION ESTABLISHING RULES AND REGULATIONS FOR OPERATION OF NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY WHEREAS, the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, (hereinafter "Board ") recognizes the need for general rules and regulations to manage and operate the water distribution system of the Northwest Water and Sewer District of Harnett County (hereinafter "District ") during both its construction period and thereafter; and WHEREAS, Harnett County now is operating and managing the systems of several water service districts within Harnett County and utilizes with respect thereto the current Operational Rules and Regulations of the Northeast Metropolitan Water District of Harnett County; and WHEREAS, it has been recommended to the Board by the Harnett County Director of Public Utilities that the currently existing Rules and Regulations for the Northeast Metropolitan Water District of Harnett County, except as the same relate to water rates, charges and fees, be used as the rules and regulations for the District; and WHEREAS, it is the desire of the Board to make provision in said rules and regulations for the water rates, charges and fees to be applicable to said District, and in conjunction therewith desires to adopt as Section 28 and Section 29 of said rules and regulations the provision herein below set forth. NOW, THEREFORE, BE IT RESOLVED BY THE HARNETT COUNTY BOARD OF COMMISSIONERS, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER ANS SEWER DISTRICT OF HARNETT COUNTY THAT: 1. The currently existing rules and regulations applicable to the Northeast Metropolitan Water District of Harnett County except as the same relate to water rates, charges and fees are hereby established as the rules and regulations for the water operations of the District. 272 2. Section 28 of said Rules and Regulations shall read and be as follows: Section 28. Classifications, Rates, Fees and Charges. (a) Classification of Service. All services are classified under two categories to include residential or multi -unit services. A residential service is a service which provides water to a single family residence and the buildings appurtenant thereto. A multi -unit service is a service which provides water to more than one single family residence or more than one user unit. (b) Rate Schedules (1) Residential Services: Water Schedule Monthly Rate First 2,000 gallons $12.00 (minimum) All water used over $2.75 per 1,000 2,000 gallons gallons (2) Multi -Unit Services: The minimum amount of $12.00 per unit or the amount equal to the cost of the number of gallons used through the multi -unit service at the rate of $2.75 per 1,000 gallons, whichever amount is greater. (c) Tap -On -Fee. (To become effective after completion of initial sign up period) (1) Residential: If water laterals are installed by the County or County's contractor, the tap -on -fee is $500.00. This fee shall apply to three - fourths inch meter size residential services only. All other residential connection tap -on -fees shall be the cost of installation and materials, plus twenty (20) percent. (2) Multi -Unit: The cost of installation and materials, plus twenty (20) percent. (d) Fire Protection Charges Services Charges Standby Fire Plugs $5.00 /month each added to water billing, plus cost of installation and materials 6" Sprinkler Connection $10.00 /month, plus cost of installation and materials 8" Sprinkler Connection $25.00 /month, plus cost of installation and materials 12" Sprinkler Connection $100.00 /month, plus cost of installation and materials Others Negotiated (e) Rates for persons living outside the District. Rates for persons living outside the Northwest Water and Sewer District of Harnett County shall be equal to rates for persons living inside the District so long as no tax is levied within the District for support of the system; if a tax is levied on users inside the water District for the purpose of supporting the water system, then the users outside the District shall pay an increased rate as established by the County from time to time. In setting such increased rate, the County will take into consideration the rate paid by persons inside the District plus taxes levied on them for support of the water system. 3. A new Section 29 is added to said Rules and Regulations and reads as follows: Section 29 In the event the District desires to connect its water distribution system to previously existing systems, all such systems must have the approval of Division of Health Services, of the North Carolina Department of Human Resources before such connection may take place and all previously existing sources of water must be completely abandoned and rendered incapable of future water production. 273 DOCUMENT NO. S. 4. This Board retains the right to make such changes in said Rules and Regulations as applied to the District as may be needed from time to time. Duly adopted this the 6th day of March, 1989 upon motion make by Commissioner Collins , seconded by Commissioner Shaw , and passed by the following vote: Ayes 5 Noes 0 Absent 0 Abstained 0 BY: Vanessa W. Young, (/ Clerk to the Boar and of the Northwest Water and Sewer District of Harnett County HARNETT COUNTY BOARD OF COMMISSIONERS sitting as the governing body of the NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY d G. Stewart, Chairman RESOLUTION AUTHORIZING EXECUTION OF MANAGEMENT CONTRACT WITH HARNETT COUNTY WHEREAS, the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County (hereinafter "Board "), has examined the Management Contract between the County of Harnett (hereinafter "County ") and the Northwest 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 Northwest Water and Sewer District of Harnett County, that: 1. The Northwest Water and Sewer District of Harnett County is hereby authorized to and shall enter into the Management Contract attached hereto as Exhibit "A ". 2. The appropriate officers of said District are hereby directed to execute said Management Contract. Duly adopted this Commissioner 6th day of March, 1989, upon motion made by Collins , seconded by Commissioner Shaw and passed by the following vote: Ayes 5 Noes 0 Absent 0 Abstained 0 ATTEST: v Vanessa W. Young,flerkO HARNETT COUNTY BOARD OF COMMISSIONERS sitting as the governing body of the NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY By yd . Stewart,, Chairman 274 Exhibit "A ". NORTH CAROLINA. HARNETT COUNTY, MANAGEMENT CONTRACT THIS CONTRACT, made and entered into this the _ day of March, 1989, 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 NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, a municipal corporation organized and existing pursuant to the provisions of Article 6, Chapter 162A of the North Carolina General Statutes (hereinafter Called "District "); W I T N E.S SE 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 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: .. 1. 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 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 County and /or as the governing body of the District, shall establish and set the rates of charges for the purchase of water and for such other fees, charges, and penalties 275 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 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. 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 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 that the County shall maintain a system of accounts for the County Utility Department which will appropriately 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 276 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. By: ATTEST: Vanessa W. Young, Clerk By: ATTEST: Vanessa W. Young, Clerk to the Board and of the Northwest Water and Sewer District of Harnett County NORTH CAROLINA HARNETT COUNTY THE COUNTY OF HARNETT Lloyd G. Stewart, Chairman Harnett County Board of Commissioners NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY Lloyd G. Stewart, Chairman Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County 1, , a Notary Public of the County anf State aforesaid, certify that Lloyd G. Stewart, who, being by me duly sworn, says that he is Chairman of the Board of Commissioners of Harnett County, and that Vanessa W. Young is Clerk of said Board, that the seal affixed to the foregoing and attested instrument is the seal of Harnett County, North Carolina, and that said instrument was signed by him as Chairman of the Board of Commissioners of said County and by the Clerk of said Board, who affixed the official seal of Harnett County to said instrument; and that the said Lloyd G. Stewart, Chairman of the Board of Commissioners, acknowledged said instrument to be the act and deed of Harnett County, North Carolina. WITNESS my hand and Notarial Seal, this the day of , 1989. My Commission Expires: NORTH CAROLINA. HARNETT COUNTY Notary Public I� , a Notary Public of the County and State aforesaid, certify that Lloyd G. Stewart, who, being by me duly sworn, says that he is Chairman of the Board of Commissioners of Harnett County sitting as the governing body of the Northwest Water and Sewer District of Harnett County, and that Vanessa W. Young is the Clerk of said Board, that the seal affixed to the foregoing and attested instrument is the seal of said District, and that said instrument was signed by him as Chairman in the above capacity and by the Clerk of said Board, who affixed the official seal of said District to said instrument; and that the said Lloyd G. Stewart in the above capacity acknowledged said instrument to be the act and deed of the Northwest Water and Sewer District of Harnett County. WITNESS my hand and Notarial Seal, this the day of , 19 . My Commission Expires: A Notary Public 277 DOCUMENT NO. 6. RESOLUTION AUTHORIZING FACILITIES CONTRACT WITH THE TOWN OF FUQUAY - VARINA WHEREAS, the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, (hereinafter the "Board ") has reviewed the Facilities Contract attached hereto as Exhibit "A" between the Northwest Water and Sewer District of Harnett County and the Town of Fuquay - Varina; and WHEREAS, it is the desire of the Board that the Northwest Water and Sewer District of Harnett County enter into said contract as, provided. NOW THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County that: 1. The Northwest Water and Sewer District of Harnett County shall and is hereby authorized to enter into the Facilities Contract as attached hereto as Exhibit "A ". 2. The appropriate officers of the Northwest Water and Sewer District of Harnett County are hereby directed to execute said Contract as provided. Duly adopted this 6th day of March, 1989, upon motion made by Commissioner Collins , seconded by Commissioner Smith and adopted by the following vote: Ayes S Noes 0 Absent 0 Abstained 0 NORTH CAROLINA HARNETT COUNTY Exhibit "A" FACILITIES CONTRACT This Contract is entered into as of the _ day of 1989 between the NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter "Northwest ") and the TOWN OF FUQUAY - VARINA (hereinafter "Town ") W I T N E S S E T N: THAT WHEREAS, Northwest is a County 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 March 23, 1987 and adopted by the Harnett County Board of Commissioners entitled "Resolution Creating the Northwest Water and Sewer District of Harnett County; and WHEREAS, Town is a duly organized and established municipal corporation located within Wake County, North Carolina; and WHEREAS, Town desires to acquire a supply of potable water from the Northeast Metropolitan Water District of Harnett County and the County of Harnett and has contemporaneous to the execution hereof entered into an agreement with said entities for such purpose; and WHEREAS, in order to transport said supply of potable water to the Town, it is necessary for the same to be transmitted through the territory of the Northwest Water and Sewer District of Harnett County and through water lines to he constructed by and owned by said District; and 278 WHEREAS, it is further necessary that the water supply and distribution system of Northwest be expanded and enlarged to adequately deliver the water purchased by Town, and WHEREAS, Northwest and Totan have agreed upon certain matters regarding the expansion and enlargement of the system of Northwest and desire to set forth the terms of said agreement herein, and WHEREAS, by Resolution adopted by the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County at its meeting on the execution of this contract by Northwest was duly authorized; and WHEREAS, by Resolution adopted by the Board of Commissioners of the Town of Fuquay- Varina at its meeting on February 21, 1989 the execution of this contract by Town was duly authorized; NOW THEREFORE, in consideration of the foregoing and the mutual agreements hereinafter set forth, Northwest and Town agree as follows: 1. Expansion of Northwest system. Northwest agrees to cause its water supply and distribution system to be upgraded, expanded and /or enlarged so as to enable a quantity of water in the amount of one million gallons per day to be transported to the point of delivery at a reasonable constant pressure calculated at approximately eighty -four (84) pounds per square inch. The point of delivery shall be at a meter facility (to be constructed pursuant to that agreement mentioned above between Harnett -County, the Northeast Metropolitan Water District of Harnett County and Town) located on the Harnett County side of the Harnett County -Wake County line within or adjacent to the right of way of U.S. Highway 401. 2. Expansion Requirements Determined. The extent of the necessary upgrading, expansion and/or enlargement of the facilities of Northwest shall be made by the consulting engineers employed by Northwest for the purpose of designing its system and facilities. Such upgrading, expansion and /or enlargement shall be,- but is not limited to the following: (a) Increasing pipeline sizes; (b) Increasing the elevated tank capacity and overflow elevation; (c) Modifying an existing booster pumping station; (d) Increasing the capacity of a new booster pumping station; (e) Providing for additional related appurtenances. 3. Cost of Northwest Expansion. The cost of the upgrading, expansion and /or enlargement of the Northwest water supply and distribution system as provided herein shall be paid to Northwest by Town. Said cost shall be paid to Northwest as provided in paragraph 5 below. 4. Determination of Cost of Expansion. The cost of the upgrading, expansion and /or enlargement of the Northwest system shall be determined as follows: a. Northwest shall cause its consulting engineers to design the system for Northwest to include the necessary expansions as provided herein to transport water to the point of delivery as 279 specified. Thereafter, the consulting engineers employed by Northwest and consulting engineers employed by Town shall meet and mutually agree upon the following items relating to the designs: (i) Where possible, the type of and number of the various items required to be added to the new booster pumping station to increase its capacity to meet the requirements of Town hereunder. Otherwise, with respect to the new booster pumping station, the percentage of increase of such other systems therein (such as the pump system and chlorination system) attributable to or to result from the expansions to the system to provide water to Town as set forth herein. (ii) The quantity and /or units of materials, supplies, and other items required to construct the original project, without any expansions to supply water to Town. (iii) The quantity and /or units of materials, supplies, and other items required to construct the project including the necessary expansions to provide water to Town as specified herein. (iv) The difference between those quantities and /or units established in Sections (ii) and (iii) above. Upon agreement as to the above stated matters, the same shall be reduced to writing, and a copy of the information and agreements made, signed by the consulting engineers for both parties, shall be the forwarded forthwith to Northwest and Town. b. The designs shall be submitted to the necessary, federal, state and /or local governments and /or agencies as is required by law and Northwest shall obtain approval therefrom for the same. c. The project, including the necessary expansions as set forth herein to transport water to the point of delivery, shall be submitted and advertised for bids pursuant to applicable law. d. The contract or contracts for the installation and construction of the water distribution system for Northwest, including the expansions necessary to supply water to Town as provided for herein, shall be awarded, pursuant to law, by Northwest. The determination as to which bidder or bidders shall be awarded contracts shall be made by Northwest. e. The cost of the upgrading, expansion and /or enlargement of the Northwest system necessary to provide water to Town, as provided herein, and to be paid by Town to Northwest shall be those costs stated in subparagraph (f) below together with that portion of the amount of the cost of the project (as bid and contracted for), which is attributable to the increased or expanded system necessary to transport and provide water to Town. Such portion of the cost shall be the total of the following amounts: (i) The cost of all additional pipelines necessary to meet the requirements of Town, plus the cost of increasing pipeline sizes necessary to meet the requirements of Town. Increased pipeline size costs shall be calculated by multiplying that amount which is the difference between the unit prices of the originally required pipeline size and the increased pipeline size [as specified in the contract(s) with the successful bidder(s)] by the length of pipeline to be installed. By way of example, where original requirements were an eight inch pipeline and the increased requirement is a twelve inch 280 pipeline, the difference in unit prices between the cost of an eight inch and a twelve inch pipeline [as specified in the contract(s) with the successful bidder(s)] will be multiplied by the length of pipeline involved. (ii) One -half (1/2) of the lump sum cost of the elevated water storage tank as specified in the contract(s) with the .successful bidder(s) therefor. (iii) With respect to the existing booster pump station, all costs associated with the modification of the same, as specified in the contract(s) with the successful bidder(s). (iv) With respect to the costs for increasing the capacity of the new booster pumping station, where applicable, the total cost of all those types and numbers of items as determined in subparagraph 4(a) (i) hereof, multiplied by the unit cost for each such item [as specified in the contract(s) with the successful bidder(s)1, plus the amount determined by multiplying the percentage of .increase in other systems therein (as also determined in subparagraph 4(a) (i) hereof) by the lump sum cost of the same, [as specified in the contract(s) with the successful bidder(s)]. (v) The sum equal to the total cost of such quantities and /or units of materials, supplies, and other items as is necessary to expand the system to be constructed to transport and provide water to Town, the same to be established by multiplying the cost of each . such unit as set forth in the contract or contracts. as awarded, by those quantities and /or units established in subparagraph 4(a) (iv). (vi) Where not specified above, such amounts for items, systems or related appurtenances as mutually agreed upon by the parties, based upon the costs of such items, systems or related appurtenances as specified in the contract(s) with the successful bidder(s). f. The cost of the expansions described shall also include any administrative costs relating thereto and the costs of engineering and design of said expansions. Time When Costs of Expansion Due. The cost of the upgrading, expansion and /or enlargement of the Northwest water supply and distribution system as provided in paragraph 4 shall be due and payable to Northwest as provided as follows: One -third (1/3) thereof shall be due and payable within ten (10) days after the construction contract or contracts are awarded. One -third (1/3) thereof shall be due and payable within ten (10) days after notification to Town by Northwest that one -half (1/2) of the project construction is completed. One third (1/3) thereof shall be due and payable within ten (10) days after notification to Town by Northwest that the project construction is substantially completed. Town covenants that it currently has available for its expenditure sufficient funds to pay the costs of the expansions as set forth above, and agrees to supply to District sufficient documentaton to verify the same. 6. Pumping Costs. Town agrees to pay to Northwest for and during the term of Town's contract with the County of Harnett and the Northeast Metropolitan Water District of Harnett County relating to water sales (as mentioned above) the electrical costs of pumping water 281 through the system of Northwest. Said cost shall by billed monthly to Town by Northwest and shall be expressed in terms of Kilowatt hours used in supplying electric power for said pumping, multiplied by the unit cost of the same to Northwest. Payment for said costs shall by due within fifteen days (15) after the same is billed. 7. Miscellaneous Provisions. It is understood by Northwest and Town as follows: a. It is contemplated by Town and Northwest that Northwest will proceed towards and construct a water distribution system within its boundaries. However, should some event or events occur which render or cause Northwest to become incapable of constructing its system, then neither Northwest or Town shall be obligated hereunder. The decision as to whether or not said system shall be built shall be made exclusively by Northwest. b. That this contract is subject to such rules, regulations, or laws as may be applicable to similar agreements in this State, and Town and Northwest will collaborate in obtaining such permits, certificates, or the like, as may be required to comply therewith. c. That the amount of the cost of expansion paid by the Town to Northwest shall be made in consideration of Northwest's providing adequate facilities to effect the transmission of potable water to Town. It is specifically agreed that Town shall have no right title, or interest in or to any of the water distribution facilities of Northwest constructed hereunder and that the same shall be and remain the property of Northwest. d. Northwest or its assignees or designees shall be entitled to collect and retain all revenues and other charges, including connection or tap on fees or the like, from and relating to the sale of water to users in the Northwest Water and Sewer District of Harnett County. No part thereof shall be payable to Town. e. In the event that after completion of the construction of the Northwest water distribution facilities (including the expansions herein provided for), there should be a need for additional expansion to meet increased needs of Town, the cost of such additional expansion shall be paid by Town. However, District shall not be obligated to agree to such additional expansion. f. In the event of any occurrence rendering the Town incapable of performing under this contract, any successor of the Town, whether the result of legal process, assignment or otherwise, shall succeed to the rights of the Town hereunder. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this contract to be • duly executed in duplicate originals, each of which shall constitute an original. , 1989. Executed by Northwest, this day of 282 DOCUMENT NO. 7. RESOLUTION APPROVING PLANS FOR CONSTRUCTION OF WATER DISTRIBUTION SYSTEM - NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY WHEREAS,. the Harnett County Board of Commissioners, sitting as the governing body of the Northwest Water and Sewer District of Harnett County (hereinafter "the Board ") 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 Northwest Water and Sewer District of Harnett County, that: The plans and specifications for the water distribution system of the Northwest Water and Sewer District of Harnett County submitted to said District by the District's Engineers and designated as Black & Veatch Project No. 03012 shall be and are hereby approved, subject to any minor changes necessary to implement construction of said water distribution system. Duly adopted this Commissioner Collins , seconded by Commissioner Shaw 6th day of March, 1989, upon motion made by and passed by the following vote: Ayes $ Noes 0 Absent 0 Abstained 0 HARNETT COUNTY BOARD OF COMMISSIONERS sitting as the governing body of the Northwest Water and Sewer District of Harnett County ATTEST: Vanessa W. Young /�}Ilerk o the Board and of the Northwest Water and Sewer District of Harnett County By: / L .yd,G. Stewart, Chairman