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HomeMy WebLinkAbout06121989CALL TO ORDER INVOCATION RESOL. AUTHOR. EXECUTION OF AGREE. WITH ERWIN MILLS, INC. RESOL. AUTHOR. EXECUTION OF CONTRACTING. AGENCY WITH SOUTH CENTRAL RESOL. AUTHOR. EXECUTION OF MANAGEMENT & OPERATIONS CONT. RESOL. AUTHOR. UTILITIES DIR. TO NECOTIATE FOR. PUMP STATION SITES ADJOURNMENT DOCUMENT NO. 1. HARNETT COUNTY BOARD OF COMMISSIONERS SPECIAL MEETING, JUNE 12, 1989 The Harnett County Board of Commissioners met in special session on Monday, June 12, 1989, at the County Office Building, Lillington, North Carolina, with the following members present: Rudy Collins, Mack Reid Hudson, Mayo Smith, and Chairman Lloyd G. Stewart presiding. Commissioner Bill Shaw was absent Other present were Dallas H. Pope, County Manager; Vanessa W. Young, Clerk to the Board, and Kay S. Blanchard, Recording Secretary. Chairman Stewart called the meeting to order at 7 p.m. Commissioner Collins offered the invocation. - John M. Phelps, II, Public Utilities Attorney, presented a Resolution Author- izing Execution of Wastewater Treatment Agreement with Erwin Mills, Inc. involving Bunnlevel - Riverside Wastewater Facilities Project. Commissioner Hudson 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 June 12, 1989, as document no. 1. John M. Phelps, II, Public Utilities Attorney, presented a Resolution Authorizing Execution of Contracting Agency Agreement with South Central Water and Sewer District of Harnett County. Commissioner Collins 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 12, 1989; as document no. 2. John M. Phelps, II, Public Utilities Attorney, presented a Resolution Authorizing Execution of Management and Operations contract with South Central Water and Sewer District of Harnett County. Commissioner Hudson 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 12, 1989, as document no. 3. John M. Phelps, II, Public Utilities Attorney, presented a Resolution Authorizing Utilities Director to Negotiate Acquisition of Easements for Pump Stations Sites. Commissioner Smith 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 12, 1989, as document no. 4. There being no further business, the Harnett County Board of Commissioners special meeting of June 12, 1989, duly adjourned at 7:30 p.m. /mot 0 .y., G. Stewart, Chairman sa Seanait,444 Kay S Blanchard, Recording Secretary 0„-v LOU. `t/ w-�,� Vanessa W. Young, Clerk(to the Board RESOLUTION AUTHORIZING EXECUTION OF WASTEWATER TREATMENT AGREEMENT WITH ERWIN MILLS, INCORPORATED (BUNNLEVEL- RIVERSIDE WASTEWATER FACILITIES PROJECT) WHEREAS, Harnett County, through its Department of Public Utilities, has formulated the Bunnlevel - Riverside. Wastewater Facilities Project, which makes provision for sewerage collection and disposal facilities to serve the Bunnlevel and Riverside Communities within the County; and K WHEREAS, in order to implement its plan for providing such sewerage collection and disposal facilities, County is in need of a treatment facility to treat and dispose of wastewater produced in the said communities; and WHEREAS, attached hereto as Exhibit "A" is a Wastewater Treatment Agreement between Erwin Mills, Incorporated and the County of Harnett which provides for the treatment and disposal. of -said wastewater; and 435 WHEREAS, it is the desire of the County to enter into said Agreement as set forth so as to proceed with its plans with respect to the referenced Project. NOW. THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. The County of Harnett shall enter into the Wastewater Treatment Agreement attached hereto as Exhibit A. 2. The Chairman of the Board of Commissioners and the Clerk to the Board are hereby authorized and directed to execute said Agreement for and in behalf of said County of Harnett. Duly adopted this 12th day of June, 1989, upon motion made by Commissioner Hudson , seconded by Commissioner Smith and adopted by the following vote: Ayes 4 Noes 0 Absent 1 Abstained ATTEST: Vanessa W. Young, Clerk to the Board NORTH CAROLINA HARNETT COUNTY Ad[n►.:_ L1- yd G. Ste art, Chairman, Harnett County Board of Commissioners 0 WASTEWATER TREATMENT AGREEMENT THIS WASTEWATER T EATMENT AGREEMENT is made and entered into this the qtr- day of • , 1989 by and between ERWIN MILLS, INCORPORATED, a corp ration duly organized and existing under the laws of the State of Delaware, (formerly Burlington Fabrics I Inc.), hereinafter referred to as "Erwin Mills "; and THE COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina, hereinafter referred to as "County ". W I T N E S S T H THAT WHEREAS, Erwin Mills is the owner and operator of a wastewater treatment •facility (hereinafter sometimes referred to as "treatment facility ") located near its Denim Weave Plant off of North Carolina Highway 217, near Erwin, North Carolina; and WHEREAS, County, through its Department of Public Utilities, has formulated they Bunnlevel- Riverside Wastewater Facilities Project, which makes provisions for sewerage collection and disposal facilities to serve the Bunnlevel and Riverside Communities within the County, which communities are located in close proximity to the treatment facility; and WHEREAS, in order to implement its plan for providing such sewerage collection and disposal facilities, County is in need of a treatment facility to treat and dispose of wastewater produced in the said communities; and 436 WHEREAS, the Erwin' Mills treatment facility has a treatment capacity currently capable of meeting the present needs of Erwin Mills and the estimated needs of the Bunnlevel and Riverside Communities; and WHEREAS, Erwin Mills and County now desire to make provision for the treatment of wastewater produced by the Bunnlevel and Riverside Communities at the treatment facility and desire to set forth herein the terms and conditions of their agreement. NOW, THEREFORE/in consideration of the foregoing and the mutual agreements hereinafter set forth, SECTION A. Erwin Mills agrees: 1. (Treatment) To treat at the treatment facility located near its Denim Weave Plant off of North Carolina Highway 217, near Erwin, North Carolina, during the term of this agreement or any renewal or extension thereof, quantities of wastewater transported thereto. by County from the Bunnlevel- Riverside sewerage collection and disposal facilities up to and including the maximum amount of ninety thousand (90,000) gallons per day. The wastewater shall be treated pursuant to those standards specified by the applicable federal and state agencies, including but not limited to, the standards of the Division of Environmental Health of the North Carolina Department of Natural Resources and Community Development. (Connection Point) That wastewater will be transported to the treatment facility via an eight inch sewer force main (described in paragraph (3) of Section B below) which force main shall be connected to the treatment facility at the existing manhole located at that point designated as "Proposed Connection Point and Meter Vault Site" at the northern end of the easement and right of way all as described in paragraph A(3) below and as is shown on the plat therein referenced. 3. (Easement) To provide to County, simultaneous with the delivery of the executed originals of this Agreement, a document, granting to County a continuous and adequate easement and right of way over the lands of Erwin Mills from the connection point above described to the right of way of North Carolina Highway 217 near the entrance to the Erwin Mills Denim Weave Plant to erect, construct, install and lay, and thereafter use, operate, inspect, V repair, maintain, replace, remove, change the size of or protect the eight inch sewer force main described in, paragraph (3) of Section B below, and the meter facility described in paragraph (2) of Section 13/together with the right of ingress and egress to, from and across the same over the adjacent lands of Erwin Mills for the purposes aforesaid, said easement being described as follows: 437 A twenty (20) foot wide easement and right of way which extends from the centerline of the right of way of N.C. Highway 217 in a northerly direction to an existing manhole, which manhole is a part of and appurtenant to the wastewater treatment facility operated by Erwin Mills, said easement and right of way being twenty (20) feet in width and ten (10) feet on each side of a line which lies as follows: Beginning at a point in the centerline of North Carolina Highway 217, said point lying North 77° 38' 57" East 19.66 feet and North 80° 33' 46" East 165.24 feet from the center of the eastern end of the Highway 217 Bridge crossing the Cape Fear River, and runs thence from said beginning point North 22° 20' 47" West 22.95 feet to a point; and runs thence North 22° 20' 47" West 299.30 feet to a point; and runs thence North 16° 29' 27" West 1200.10 feet to a point; and runs thence North 32° 40' 45" West 179.48 feet to a point; and runs thence North 11° 35' 40" West 186.01 feet to a point; and runs thence North 24° 05' 38" West 277.56 feet to a point; and runs thence North 09° 13' 31" West 211.46 feet to a point; and runs thence North 12° 22' 01" West 400.16 feet to a point; and runs thence North 02° 05' 19" West 473.58 feet to a point; and runs thence North 68° 15' 59" East 513.71 feet to a point at an existing manhole, which manhole is a part of and appurtenant to the wastewater treatment facility operated by Erwin Mills; (said point is designated as "Proposed Connection Point and Meter Vault Site" on the plat referenced below) said easement and right of way and proposed connection point and meter vault site being shown on a plat entitled "Survey for County of Harnett, Bunnlevel- Riverside 20' Utility Easement" prepared by Ragsdale Consultants, P.A. and recorded at Plat Cabinet , Slide , Harnett County Registry. 4.(Meter Readings) To read on the first day of each month the meter described in paragraph (2) of Section B. 5. (Billing Procedure) To furnish to County not later than the tenth (10th) day of each month, an itemized statement (including the amount of wastewater treated, the rate, and the amount due) for the amount of wastewater treated by Erwin Mills during the preceding month as established by the meter readings made on the first day of each month. It is understood that the first billing shall be made on the tenth (10th) day of the month following the month during which County has notified Erwin Mills, in writing, that its system is completed as certified by County's engineer. SECTION B. County agrees: 1. (Rates and Payment Date) To pay to Erwin Mills, not later than the twenty -fifth (25th) day of each month for wastewater treated at the treatment facility, the sum of One Dollar, fifteen cents ($1.15) per one thousand (1,000) gallons treated. 2. (Meter Facility) To furnish, install, operate and maintain at its own expense at the meter location described below, the necessary metering equipment, including a meter house or pit, and the required devices of standard type for properly measuring the quantity of wastewater transported to Erwin Mills for treatment and to calibrate such metering equipment whenever requested by Erwin Mills, but not more frequently than once every twelve (12) months. A meter registering not more than two (2%) percent above or below the test result shall be deemed to be 438 accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the three (3) months previous to such test in accordance with the percentage of inaccuracy found by such tests. If the meter fails to register for any peribd, the amount of wastewater treated during such period shall be deemed to be the amount of wastewater treated in the corresponding period immediately prior to the failure, unless the parties shall agree upon a different amount. Appropriate officials of Erwin Mills shall have access to the meter at all reasonable times in order to make its readings. The meter 'shall be located adjacent to the existing manhole at the connection point as described in paragraph A(2) above. - - - - 3. (Construction of Eight (8) inch Sewer Force Main) To install and construct the eight inch sewer force main from the right of way of North Carolina Highway 217 near the entrance to the Erwin Mills Denim Weave Plant to the connection point at the treatment facility along and within the easement provided for in paragraph (3) of Section A hereof. It is understood that said force main shall be and remain the property of County. (Maintenance of Eight (8) Inch Sewer Force Main) To maintain the eight inch sewer force main described above connecting the Bunnlevel- Riverside sewerage collection and disposal facilities to the treatment facility. SECTION C. It is further mutually agreed between Erwin Mills and County as follows: 1. (Term of Contract) This contract shall extend for a term of twenty (20) years from the date of the written notification by County to Erwin Mills that the Bunnlevel- Riverside wastewater facilities are completed as certified by the County's engineer. The contract thereafter may be renewed or extended for such term, or terms, as may be agreed upon by the parties. 2. (Alternate Treatment Facility Operation) In the event that at any time during the term of this Wastewater Treatment Agreement, or any extension or renewal thereof, Erwin Mills should determine that the operation of the treatment facility is not required for its manufacturing or business operations and that it will therefore cease operating said facility, whether permanently or. otherwise, then, in order to provide uninterrupted treatment services for the County, County shall have the option of operating the treatment facility upon the following terms: (a) Upon making the determination described above, Erwin Mills shall notify County of the same, and shall further advise County of the date upon which it intends to cease operating the treatment facility. Said notification 439 and advisement shall be made to County in writing, and mailed to County at the address provided in paragraph 12 of Section C hereof, certified, return receipt requested. The same shall be received by County at least sixty (60) days in advance of the date Erwin Mills intends to cease operation of the said treatment facility. (b) Within twenty (20) days after receipt of the notification and advisement described in subparagraph 2(a) above, County shall notify Erwin Mills in writing, as to whether it intends to operate the treatment facility as hereinafter provided. Said notification shall be mailed to Erwin Mills at the address provided in paragraph 12 of Section C hereof, certified, return receipt requested. (c) In the event County shall determine that it intends to operate the treatment facility as hereinafter provided, it is agreed that County and Erwin Mills shall collaborate in proceeding to transfer the operation of the treatment facility from Erwin Mills to County. Representatives of County and Erwin Mills shall meet as often as is required for the purpose of providing County personnel the opportunity to become familiar with the facility and the facility operations, and for the purpose of otherwise providing for an orderly transition of operations from Erwin Mills to County. (d) In the event County shall have determined that it will operate the treatment facility as provided, then at 12:00 o'clock noon on the date Erwin Mills shall cease operating' the facility, operation of the same shall be transferred to County for such period as is provided in subparagraph 2(e) below. (e) County shall have the right to operate the treatment facility as provided herein for the duration of the term of this Wastewater Treatment Agreement, or, if applicable, any renewal or extension thereof. (f) It is understood that should Erwin Mills determine that the operation of the treatment facility is once again required for its manufacturing or business operations, and that it therefore desires to once again operate the treatment facility, County, within thirty (30) days after receiving written notification of Erwin Mills' desire to operate the said facility, shall transfer operation of the same back to Erwin Mills. Said notification shall be mailed to County at the address provided in paragraph 12 of Section C hereof, certified, return receipt requested. It is further understood that should this event occur, the original terms of this Wastewater Treatment Agreement [including the terms of this paragraph (2) of Section C] shall become applicable for the duration of its term or, if applicable, a renewal or extension thereof. (g) During such period or periods as provided herein when the treatment facility shall be operated by County, Erwin Mills hereby agrees that: (i) County shall have exclusive, full and complete authority to use and operate the entire treatment facility, including all equipment and appurtenances related thereto. (ii) Representatives and agents of the County shall have the right to come and remain upon the treatment facility premises at all times for the purpose of conducting County's operation of the same; (iii) Representatives and agents of the County shall have the right of ingress, regress and - egress over properties of Erwin Mills adjacent to the treatment facility so as to provide such individuals full access to the said facility; (iv) The County, and its representatives and agents shall have such other privileges with respect to the entire treatment facility as are normally and reasonably associated with the complete operation of such a facility. (h) During such period or periods as County operates the treatment facility, County shall pay to Erwin Mills the sum of Nine Thousand, Seven Hundred ($9,700.00) Dollars per month for the use of the treatment facility. Payments shall be made not later than the twenty -fifth (25th) day of each month. The use fee provided for herein shall be subject to modification annually, and any increase or decrease in the amount thereof shall be based on a demonstrable increase or decrease in fixed overhead costs to Erwin Mills with respect to the treatment facility. (i) During such period or periods as County operates the treatment facility, County shall pay costs incurred for the treatment of wastewater, including power costs and chemical costs, and shall provide such labor as is required for its operation of the same. (j) Erwin Mills agrees that at the time of any transition of the operation of the treatment facility to County, as provided herein, it shall cause the treatment facility to be in good operating condition, fully capable of treating its wastewater and to be in full compliance with all federal, state, and local laws and regulations. Erwin Mills further agrees to keep the said facility in such condition and in compliance with said laws and regulations during any period County operates said facility. (k) It is understood that County shall not be obligated to pay for costs of structural or equipment repairs or replacements, except where such costs are 441 incurred as the direct result of County's negligence or wrong doing, or as the direct result of the transmission of wastewater violating the provisions of paragraph 4 of Section C hereof to the facility from the Bunnlevel - Riverside sewerage collection and disposal facilities. (1) County agrees that it will conduct its operation of the treatment facility in full compliance with all federal, state and local laws and regulations. (m) During such period or periods as County operates the treatment facility, County may, at its own expense, take temporary measures to modify the treatment facility to provide for, among other things, a more efficient and economical operation thereof; provided, however, that, unless County and Erwin Mills agree otherwise, any such temporary measures shall be removed prior to any transfer of operations back to Erwin Mills. 3. (Additional Capacity) In the event County should require additional treatment services from Erwin Mills, beyond the maximum stated in paragraph (1) of Section A hereof, it is agreed that if the Erwin Mills treatment facility shall have sufficient capacity to treat such additional wastewater, upon request by County, Erwin Mills will treat such additional amount of wastewater from County as may be adequately treated in the said treatment facility upon the existing terms and conditions of this agreement. 4. (Wastewater Discharge Control) County covenants that prior to the commencement of the transportation of wastewater to the treatment facility from the Bunnlevel- Riverside sewerage collection and disposal facilities, County will adopt an Ordinance regulating the use of the said sewerage collection and disposal facilities. Said Ordinance shall, among other things, limit and /or prohibit (where appropriate) the discharge of wastewater into the said sewerage collection and disposal facilities where such wastewater would, singly or by interaction with other wastewater, cause harm or damage to, or interfere with the proper operation of the sewerage collection and disposal facilities, treatment facility, and /or treatment process or cause adverse effects upon the receiving waters from the treatment facility. In the event wastewater from the Bunnlevel- Riverside sewerage collection and disposal facilities is transported to the treatment facility and is proven to have directly caused harm or damage to, or interfered with, the proper operation of the treatment facility and /or treatment process, or caused adverse effects upon the receiving waters from the treatment facility, County agrees to pay to Erwin Mills the cost of repairing said harm or damage to the treatment facility, and the cost of correcting the treatment process and /or the adverse effects upon the receiving waters from the treatment facility. 5. (Initial Treatment) Thirty (30) days prior to the estimated date of completion of County's Bunnlevel- Riverside wastewater facilities, County will notify Erwin Mills in writing of the estimated date of such completion. 6. (Testing) When requested by County, and /or its contractor(s), Erwin Mills will cooperate with the. said County and /or its contractor(s) with respect to testing the sewerage collection lines constructed and installed. 7. (Treatment of Wastewater from South Central Water and Sewer District of Harnett County) It is acknowledged by Erwin Mills and County that the Bunnlevel Community, which will be provided sewerage collection and disposal services through the Bunnlevel- Riverside Wastewater Facilities Project, is located within the South Central Water Sewer District of Harnett County, and that such District is providing funding for the construction of portions of the system in that District. It is further understood that through its Department of Public Utilities, pursuant to contract with said District, County will operate and manage the system located within the District. It is agreed that wastewater from the Bunnlevel Community of the South Central District will be treated pursuant to this agreement. S. (Modification of Agreement) The provisions of this agreement pertaining to the rates to be paid by County to Erwin Mills for wastewater treatment are subject to modification at the end of every. one (1) year period, such one year periods to begin commencing on the date of the beginning of the term of this Agreement. Any increase or decrease in rates shall be based on a demonstrable increase or decrease in the cost of treatment to Erwin Mills. It is understood that where treatment costs to Erwin Mills, are increased because of new or additional regulatory requirements applied to its operation by reason of its treatment of wastewater from the Bunnlevel- Riverside sewerage collection and disposal facilities, then such demonstrable increase resulting therefrom may be applied to the rates paid by County beginning with the first months billing after such increased costs are incurred. Such costs of treatment shall not include increased capitalization of Erwin Mills treatment facility. Other provisions of this Agreement may be modified or altered by mutual agreement. 9. (Regulatory Agencies) This Agreement is subject to such rules, regulations, or laws as may be applicable to such or similar agreements in this State and the parties will collaborate in obtaining such permits, certificates, or the like, as may be required to comply therewith. 10. (Binding Effect) In the event Erwin Mills should cease to own and /or operate the treatment facility hereinabove described, whether the result of sale, assignment, legal process, or otherwise, this Agreement shall be binding on Erwin Mills' successor in interest. It is understood and agreed that the terms hereof are binding on the parties hereto and their successors, assigns, and legal representatives. 11. (Interconnection) The terms hereof in no way shall preclude County from connecting or interconnecting the Bunnlevel- Riverside wastewater collection and disposal facilities with or to any other sanitary sewerage collection and disposal facilities. 443 12. (Notices) Any notice(s) required to be given to County hereunder shall be mailed to County at the following address: Harnett County Department of Public Utilities Post Office Box 1119 Lillington, North Carolina 27546 Any notice(s) required to be given to Erwin Mills hereunder shall be mailed to Erwin Mills at the following address: Erwin Mills, Inc. 200 North Thirteenth Street Erwin, North Carolina 28339 13. (Termination by County) It is the intent of County to construct and /or otherwise acquire a wastewater treatment facility in the future and at such time as its facility becomes operational, County may elect to terminate this agreement upon sixty (60) days written notice to Erwin Mills. IN WITNESS WHEREOF, the parties hereto have caused this Wastewater Treatment Agreement to be executed in duplicate counterparts, each of which shall constitute an original. Executed by Erwin Mills, Incorporated, this 1 -'6& day of 10w4 ATTEST: , 1989. (type name) (ont7'o /�Fr (title) Executed by County, this ATTEST: Vanessa W. Young, Clerk to the Board ERWIN MILLS, INCORPORATED (formerly Burlington Fabrics I Inc.) (type name) L! /a'? %q rti,.. a. f /ttr (title) 0 day of , 1989. BY: THE COUNTY OF HARNETT Lloyd G. Stewart, Chairman, Harnett County Board of Commissioners 444 DOCUMENT NO. 2. RESOLUTION AUTHORIZING EXECUTION OF CONTRACTING AGENCY AGREEMENT WITH SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (BUNNLEVEL- RIVERSIDE WASTEWATER FACILITIES PROJECT) WHEREAS, Harnett County, through its Department of Public Utilities, has formulated the Bunnlevel- Riverside Wastewater Facilities Project, which makes provision for sewerage collection and disposal facilities to serve the Bunnlevel and Riverside Communities within the County; and WHEREAS, The Community of Bunnlevel is located within the South Central Water and Sewer District of Harnett County and the Riverside Community is located adjacent thereto, but outside the boundaries of said District, and WHEREAS, as part of the formulation of said Project, the County has obtained grants from certain agencies which will benefit the Bunnlevel Community located within the South Central Water and Sewer District of Harnett County; and WHEREAS, District, in order to provide more comprehensive sewerage collection and disposal services to the Bunnlevel Community, has made application to and received a loan and grant from the Farmers Home Administration of the,United States Department of Agriculture for such purpose to supplement the grant monies made available to the Bunnlevel Community of the District as mentioned above; and WHEREAS, District has requested the County to act as contracting agent for the District with respect to the Project in order to more efficiently provide for the construction of the sewerage collection and disposal facilities within District boundaries; and WHEREAS, attached hereto as Exhibit "A" is a Contracting Agency Agreement between the District and the County of Harnett which makes provision for the County to act as said agent of the District; and WHEREAS, it is the desire of the County to enter into said agreement as provided: NOW THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. That the County of Harnett shall enter into the Contracting Agency Agreement attached as Exhibit "A ". 2. That Chairman of the Board of Commissioners and the Clerk to the Board are hereby authorized and directed to execute said Agreement for and in behalf of said County of Harnett. Duly adopted this 12th day of June, 1989, upon motion made by Commissioner Collins , seconded by Commissioner Hudson and adopted by the following vote: Ayes 4 Noes 0 Absent ATTEST: Vanessa W. Young, Clerk to the Boa d 1 Abstained 0 / At 'oy. G. Stewar , Chairma , am tt County Board of Commissioners 445 EXHIBIT "A" NORTH CAROLINA HARNETT COUNTY CONTRACTING AGENCY AGREEMENT THIS AGREEMENT is made and entered into this day of , 19_ by and between the SOUTH CENTRAL 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 referred to as "District ") and THE COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina (hereinafter referred to as "County "). W I T N E S S E T H THAT WHEREAS, in response to inquiries made by citizens of the Bunnlevel and Riverside Communities in Harnett County regarding 1 construction of sewerage collection and disposal facilities in said communities, County, through its Department of Public Utilities, has conducted studies to determine the needs for such services therein; and WHEREAS, the County has found that there is a definite need for sewerage collection and disposal services in the named communities; and WHEREAS, the community of Bunnlevel is located within the South Central Water and Sewer District of Harnett County and the Riverside Community is located adjacent thereto, but outside the boundaries of said District; and WHEREAS, County has, for the benefit of the named communities, formulated a plan for providing the needed sewerage collection and disposal facilities therein, said plan now having been designated as the Bunnlevel- Riverside Wastewater Facilities Project (hereinafter sometimes referred to as the "Project "); and WHEREAS, certain plans and specifications for said Project have been completed by Ragsdale Consultants, P.A. and are now on file in the office of the Harnett County Department of Public Utilities and designated as EPA Project Number C 370454 -02; and WHEREAS, as part of the formulation of said Project, County has obtained grants from certain agencies which will benefit the Bunnlevel Community located within the South Central Water and Sewer District of Harnett County; and WHEREAS, District, in order to provide more comprehensive sewerage collection and disposal services to the Bunnlevel Community, has made application to and received a loan and grant from the Farmers Home Administration of the United States Department of Agriculture for such purpose to supplement the grant monies made available to the Bunnlevel Community of the District as mentioned above; and WHEREAS, District has requested the County and the County has agreed to act as contracting agent for the District with respect to the Project in order to more efficiently provide for the construction of the sewerage collection and disposal facilities within the District's boundaries; and 446 WHEREAS, District and County now desire to set forth the terms of their agreements regarding these matters. NOW, THEREFORE, It is mutually agreed as follows: 1. County, through its Department of Public Utilities, as part of its implementation of the Bunnlevel- Riverside Wastewater Facilities Project, shall act as contracting agent for and on behalf of District with respect to the construction of sewerage collection and disposal facilities within the District's boundaries. In such capacity, as part of overall Project, County shall; a. cause plans and specifications for the Project to be drawn in such a manner so as to enable such portion thereof as applies to the District to be separately and distinctly identifiable from all other portions of the Project, said plans and specifications to be further drawn in a manner so as to be in full compliance with all rules, regulations and requirements of the Farmers Home Administration of the United States Department of Agriculture and such other federal and /or' state agencies as may be applicable; b. cause the above described plans and specifications for that portion of the Project which will provide sewerage collection and disposal facilities for the Bunnlevel Community to be advertised and bid as part of the overall Project; c. enter into a contract or contracts for the installation and construction of the sewerage collection and disposal facilities for the Bunnlevel Community; d. cause the installation and construction of the sewage collection and disposal facilities for the Bunnlevel Community to be supervised by qualified and competent engineers; e. provide for the administration of the construction of the sewage collection and disposal facilities for the Bunnlevel Community, and to provide for inspection of the construction and installation of the same; f. provide for the administration of the grants and other funds obtained for use in the Bunnlevel Community; g. maintain a system of accounts for the Project which will enable payments made thereunder for and on behalf of the District to be distinguishable from all other payments made for the Project; h. pay from the funds provided to it by District (as provided in paragraph 2 below) such statements and /or pay estimates as are presented to County for work and /or services related to the installation and construction of the sewerage collection and disposal facilities in the District; and 447 i. otherwise manage the construction and installation of . the sewerage collection and disposal facilities for the Bunnlevel Community. 2. District shall pay to County, from the funds obtained through its above described loan and grant from the Farmers Home Administration of the United States Department of Agriculture, such sums which equal the cost of the installation and construction of the sewerage collection and disposal system in the District (less that portion of the costs of the same.paid from the grant funds obtained by County for the Project), said sums to include District's pro rata portion of costs for engineering and legal services; said sums to be paid by District to County upon notification to District by County of its receipt of statements and /or pay estimates for work and /or services related to the installation and construction of the sewerage collection and disposal system in the District. 3. It is understood that County shall receive no compensation for its services as contracting agent as provided herein. 4. It is acknowledged by the parties that County, as a part of its implementation of the Bunnlevel Riverside Wastewater Facilities Project, has entered into a Wastewater Treatment Agreement with Erwin Mills, Incorporated providing for treatment of wastewater produced from the Bunnlevel and Riverside Communities. Pursuant to said Wastewater Treatment Agreement, wastewater from District will be treated. It is further acknowledged that simultaneous with the execution hereof County and District have entered into a Management and Operations Contract which provides that upon completion of the installation and construction of District's sewerage collection and disposal facilities that the same will be managed and operated by County and that wastewater produced therefrom will be treated pursuant to the referenced agreement with Erwin Mills, Incorporated. 5. It is understood that, as stated, a portion of the District's sewerage collection and disposal facilities is being financed by a loan made or insured by, and a grant from the Farmers Home Administration of the United States Department of Agriculture, and the provisions hereof pertaining to the undertakings of District are conditioned upon the approval, in writing, of an appropriate official of the Farmers Home Administration. It is further understood that the plans and specifications for the District as described in paragraph 1(a) hereof shall be approved by said Farmers Home Administration. DOCUMENT NO 3. RESOLUTION AUTHORIZING EXECUTION OF MANAGEMENT AND OPERATIONS CONTRACT WITH SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (BUNNLEVEL - RIVERSIDE WASTEWATER FACILITIES PROJECT) WHEREAS, Harnett County has established a Department of Public Utilities for the purpose of operating and managing various utility service systems located within Harnett County, and WHEREAS, County, through its Department of Public Utilities, has formulated a plan for providing sewer services for the Bunnlevel and Riverside Communities of Harnett County, said plan having been • designated as the Bunnlevel- Riverside Wastewater Facilities Project (hereinafter sometimes referred to as the "Project ") and in connection therewith has obtained certain grant funds for use in constructing facilities to provide such services; and WHEREAS, the Bunnlevel Community is located within the South Central Water and Sewer District of Harnett County; and WHEREAS, District, in order to provide more comprehensive sewerage collection and disposal facilities within the Bunnlevel Community has obtained a loan and grant from the Farmers Home Administration of the United States Department of Agriculture to supplement the other grant monies available for construction of such facilities; and WHEREAS, the South Central Water and Sewer District has requested the County to manage and operate its completed facilities constructed pursuant to the aforementioned Project; and WHEREAS, attached. hereto as Exhibit "A" is a Management and Operations Contract between the County of Harnett and the South Central Water and Sewer District of Harnett County which makes provision for said County to manage and operate the system of the District; and WHEREAS, it is the desire of the County to enter into said Agreement as set forth. NOW. THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. The County of Harnett shall enter into the Management and Operations Contract attached hereto as Exhibit A. 2. The Chairman of the Board of Commissioners and the Clerk to the Board are hereby authorized and directed to execute said Agreement for and in behalf of said County of Harnett. Duly adopted this 12th day of June, 1989, upon motion made by Commissioner Hudson , seconded by Commissioner Collins and adopted by the following vote: Ayes 4 Noes 0 Absent 1 Abstained 0 ATTEST: Vanessa W. Young, ((lJ Clerk to the Eo rd / -LAIL i nrn 'oyd . Stewar , Chairman, ar'ett County Board of Commissioners 449 EXHIBIT A NORTH CAROLINA MANAGEMENT AND HARNETT COUNTY OPERATIONS CONTRACT THIS MANAGEMENT AND OPERATIONS CONTRACT is made and entered into this day of , 19_ by and between THE COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina (hereinafter referred to as "County ") and THE SOUTH CENTRAL 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 referred to as "District ") W I T N E S S E T H THAT WHEREAS, County has established a Department of Public Utilities for the purpose of operating and managing various utility service systems located within Harnett County, and WHEREAS, County, through its Department of Public Utilities, has formulated a plan for providing sewer.services for the Bunnlevel and Riverside Communities of Harnett County, said plan having been designated as the Bunnlevel- Riverside Wastewater Facilities Project (hereinafter sometimes referred to as the "Project ") and in connection therewith has obtained certain grant funds for use in constructing facilities to provide such services; .and WHEREAS, the Bunnlevel Community is located within the South Central Water and Sewer District of Harnett County; and WHEREAS, District, in order to provide more comprehensive sewerage collection and disposal facilities within the Bunnlevel Community has obtained a loan and grant from the Farmers Home Administration of the United States Department of Agriculture to supplement the other grant monies availible for construction of such facilities; and WHEREAS, District has simultaneous with the execution hereof entered into an agreement with County relative to the County's administration and management of the construction of said sewage collection and disposal facilities for the District; and WHEREAS, District desires to enter into this contract with County for the purpose of obtaining sewerage treatment for its wastewater and to make provision for the management and operation of its completed facilities within the District and the Bunnlevel Community; and WHEREAS, County has heretofore entered into a Wastewater Treatment Agreement with Erwin Mills, Incorporated dated which makes provision for the treatment of wastewater from the Bunnlevel and Riverside Communities; and WHEREAS, County is therefore capable of providing sewerage treatment for the District and, through its Department of Public Utilities, capable of conducting the operation of the sewerage collection and disposal facilities of the District; and WHEREAS, County and District have agreed to enter into this contract for the treatment of the District's wastewater and the 450 operation of the sewerage collection and disposal facilities of the District on a continuing basis and especially for and during the period of the existence of the aforementioned Farmers Home Administration loan to the District. NOW, THEREFORE, The parties do contract and agree each with the other as follows: 1. Wastewater Treatment a. It is acknowledged by the parties that as part of County's implementation of the Bunnlevel-Riverside Wastewater Facilities Project, County has entered into a Wastewater Treatment Agreement with Erwin Mills, Incorporated dated providing, among other things, for the treatment of wastewater from the Bunnlevel and Riverside Communities. Pursuant to the terms of said Wastewater Treatment Agreement, County agrees, for the term thereof, and any extensions or renewals of the same, to provide for the treatment of wastewater from the District's sewerage collection and disposal facilities located in the Bunnlevel Community. b. In the event that the term of the said Wastewater Treatment Agreement should. expire, County agrees to make every reasonable effort to secure wastewater treatment for the District's facilities. 2. .Management of Facilities The District's sewerage collection and disposal facilities serving the Bunnlevel Community shall be managed and operated by the County, through its Department of Public Utilities, as a County operated system upon the following terms and conditions: a. The Harnett County Board of Commissioners sitting as the governing body of the County and sitting as the governing body of the District shall establish and set the rates of charges for the use of the said sewerage collection and disposal facilities, and for such other fees, charges and penalties as required for the operation thereof, with proper cost accounting procedures to appropriately reflect the cost of these facilities operated by the County Department of Public Utilities relative to the operation of other utility enterprises which are or may be carried on by the said Department of Public Utilities. It is understood that the Harnett County Board of Commissioners shall charge such rates for the use of said sewerage collection and disposal facilities. as will appropriately yield sufficient funds to meet operation and maintenance expenses and to pay and retire the long term debts of the District to the Farmers Home Administration. b. The County will manage and operate the said sewerage collection and disposal facilities on an annual budget with the setting of the rates on an annual basis as approved by the District's governing body with proper input and advice from the heretofore created South Central District 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 Department of Public 451 i" Utilities which will appropriately account for the various operations of the Utility Department, specifically so that all costs relative to the sewerage collection and disposal facilities with be separately stated. c. The County shall maintain insurance and bonds as required by state law and the County shall properly contract with a certified public accountant for annual audits of the Utility Department. d. The County shall comply with all federal, state and local laws and regulations relative to the operation and management of the District's sewerage collection and disposal facilities. 3. Term a. It is understood by the parties that this contractual arrangement shall continue for a period beginning as of the execution of this contract and extend until that certain loan referred to made by the Farmers Home Administration to the District has been paid in full, being a period of at least forty (40) years; provided however that County may provide for other treatment facilities if the same are constructed or acquired in the future. b. This contract shall be a continuing contract relative to the furnishing of sewer utility services for the people of the District and this contract shall exist and continue until the District and County shall mutually modify or terminate this contractual arrangement. 4. Additional Facilities a. County shall be entitled to fund or cause to be funded the construction of any sewer 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 wastewater utility services as the same shall be determined by the Harnett County Board of Commissioners.. b. The rates chargeable to such persons (users) shall be equitably set to properly reflect cost of operations and maintenance of collection and /or treatment, if applicable. c. 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, 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. d. It is understood and agreed that District shall have no obligation to extend its sewer collection lines outside of the District boundaries. 5. Farmers Home Administration Approval It is understood that, as stated, a portion of the cost of the District's sewerage Collection and disposal facilities is being financed by a loan made or insured. by, and a grant from the Farmers Home Administration of the United States Department of Agriculture, and the provisions hereof pertaining to the District are conditioned upon the approval, in writing, of an appropriate official of the Farmers Home Administration. IN WITNESS WHEREOFI_the parties hereto_, acting under authority of their governing bodies, have caused this Management and Operations Contract to be duly executed in duplicate counterparts each of which shall constitute an original. This day of , 19 DOCUMENT NO. 4. RESOLUTION AUTHORIZING UTILITIES DIRECTOR TO NEGOTIATE ACQUISITION OF EASEMENTS AND PUMP STATION SITES (BUNNLEVEL- RIVERSIDE WASTEWATER FACILITIES PROJECT) WHEREAS, Harnett County, through its Department of Public Utilities, has formulated the Bunnlevel- Riverside Wastewater Facilities Project, which makes provision for sewerage collection and disposal facilities to serve the Bunnlevel and Riverside Communities within the County; and WHEREAS, in order to implement the construction of said facilities, it will be necessary for the County of Harnett to acquire certain easements and pump station sites, all as shown on plans now on file in the office of the Harnett County Department of Public Utilities; and WHEREAS, it is the desire of the County of Harnett to authorize the Director of Harnett County Public Utilities to proceed with the acquisition of said easements and pump station sites. NOW. THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners: 1. That Rodney M. Tart, as Director of Harnett County Public Utilities is hereby directed and authorized to proceed with the acquisition of the referenced easements and pump station sites. 2. That upon completion of his negotiations with respect thereto, that he report to the Board regarding the same. Duly adopted this 12th day of June, 1989, upon motion made by Commissioner Hudson Smith Ayes 4 ATTEST: , seconded by Commissioner and adopted by the following vote: Noes 0 Absent 1 Abstained fl-4M) Vanessa W. Clerk to t L1.yd . St' -rt, Chairman, Ha ne t County Hoard of Commissioners e