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HomeMy WebLinkAbout1204198910 HARNETT COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, DECEMBER 4, 1989 The Harnett County Board of Commissioners met in regular session on Monday, December 4,1989, 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 9 a.m. Commissioner Hudson offered the invocation. Commissioner Smith moved for the approval of the minutes of the regular meeting, November 20, 1989, and special meeting, November 28, 1989. Commissioner Shaw seconded the motion and it passed with a unanimous vote. OPHELIA MCLEAN Commissioner Hudson moved for the adoption of a resolution of appreciation for RETIREMENT Ophelia McLean, retiring secretary with Harnett County Agricultural Extension Service. Commissioner Smith seconded the motion and it passed with unanimous vote. The resolution is copied in full at the end of these minutes dated December 4, 1989 as document no. 1. Chairman Stewart presented the resolution of appreciation to Miss McLean and Commissioner Shaw presented a plaque which read "Presented to Ophelia McLean in honor and appreciation of her outstanding service and contributions to Harnett County as a secretary with the North Carolina Agricultural Extension Service in Harnett County 1946 - 1989 ". F.Y. 1988 -89 Randy Brodd, Dixon, Odom & Co., Certified Public Accountants, presented the AUDIT REPORT Harnett County Comprehensive Annual Financial Report for F.Y. 1988 -89 to the Board. DOT Ray Stone, Highway Maintenance Engineer, North Carolina Department of Transportation, appeared before the Board to discuss road matters and situations in Harnett County. Landon Barefoot, General Manager, Southern Cablevision, gave an update briefing on construction of cablevision in Harnett County. RESOLUTION RE: Carla Stephens, Planning Director, presented a Resolution Authorizing and RESTATED ZONING Directing Recordation of Amendment and Restated Zoning Ordinance. ORDINANCE 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 December 4, 1989, as document no. 2. RESOLUTION RE: Carla Stephens, Planning Director, presented a Resolution Authorizing and AMENDED & RESTAT- Directing Recordation of Amended and Restated Subdivision Ordinance. ED SUBDIVISION Commissioner Shaw moved for the adoption of the resolution. Commissioner ORDINANCE Collins seconded the motion and,it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated December 4, 1989, as document no. 3. RESOLUTION RE: Carla Stephens, Planning Director, presented a Resolution Approving Receipt SIERRA VILLA 5 and Escrow of Funds concerning Sierra Villa V Subdivision. Commissioner Shaw ESCROW OF FUNDS 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 December 4, 1989, as document no. 4. RESOLUTION RE: Dallas H. Pope, County Manager, presented a Resolution Amending the Harnett EMS OPERATING County Emergency Medical Services Operating Policies for Harnett County, North POLICIES Carolina, Adopted January 3, 1989. 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 December 4, 1989, as document no. 5. REPORTS Reports for the month of November were filed with the Board from Emergency Medical Services, Building Inspections, Veteran's Service, and the Tax Department. The Tax Attorney's Report was filed with the Board and is copied in full at the end of these minutes dated December 6, 1989, as document no. 6. BUDGET AMEND. Dallas H. Pope, County Manager, requested the following budget amendment for Special Districts: Code 10 -8700 -113 Special School District $40,000. increase 10- 8700 -114 Anderson Creek Fire District 30,000. increase 10- 8700 -115 Angier -Black River Emer. 66,000. increase 10- 8700 -116 Averasboro Fire District 24,000. increase 10- 8700 -117 Benhaven Rescue District 16,000. increase 10- 8700 -118 Benhaven Fire District 23,000. increase 10- 8700 -119 Black River Fire District 30,000. increase 10- 8700 -120 Boone Trail Emer. District 46,000. increase 11 10- 8700 -121 Buies Creek Fire District 30,000. increase 10- 8700 -122 Cypress Creek Fire District 4,800. increase 10- 8700 -123 Erwin Fire District 26,000. increase 10- 8700 -124 Flat Branch Fire District 16,000. increase 10- 8700 -125 Flatwoods Fire District 30,000. increase 10- 8700 -126 Grove Fire District 14,000. increase 10- 8700 -127 Northern Harnett Rescue 19,000. increase 10- 8700 -128 Spout Springs Fire District 28,000. increase 10 -8700 -129 Summerville Fire District 31,600. increase 10 -8700 -130 Dunn - Averasboro Rescue 72,000. increase 10 -8700 -131 Coats Grove Rescue 27,400. increase Revenue: 10- 3450 -000 N.C. Sales Tax 573,800. increase Commissioner Smith moved for the approval of the budget amendment. Commissioner Hudson seconded the motion and it passed with a unanimous vote. Dallas H. Pope, County Manager, requested the following budget amendment for Education: Code 10- 8600 -106 Board of Education Sales Tax 1,400,000. increase Revenue: 10- 3450 -000 N.C. Sales Tax 1,400,000. increase Commissioner Shaw moved for the approval of the budget amendment. Commissioner Collins seconded the motion and it passed with a unanimous vote. Dallas H. Pope, County Manager, requested the following budget amendment for Youth Services: Code 10- 7730 -009 Unemployment Benefits 1,967. increase Revenue: 10- 3990 -000 Fund Balance Appropriated 1,967. increase Commissioner Hudson moved for the approval of the budget amendment. Commissioner Smith seconded the motion and it passed with a unanimous vote. Dallas H. Pope, County Manager, requested the following budget amendment for Public Utilities (water fund): Code 30- 9100 -019 Unemployment Benefits 1,276. increase Revenue: 30- 3990 -001 Unappropriated Fund Balance- Water 1,276. increase Commissioner Collins moved for the approval of the budget amendment. Commissioner Shaw seconded the motion and it passed with a unanimous vote. RESOLUTION OF APPRE. Dallas H. Pope, County Manager, read a resolution of appreciation from Union FROM UNION COUNTY County for Harnett County's participation in the recovery process following RE: HURICANE HUGO devastation from Hurricane Hugo which passed through Union County on September 23, 1989. EXECUTIVE SESSION Commissioner Collins made a motion to go into executive session. Commissioner Shaw seconded the motion and it passed with a unanimous vote. Commissioner Smith made a motion to come out of executive session. Commissioner Shaw seconded the motion and it passed with a unanimous vote. MID -MONTH MEETING Commissioner Shaw moved that the mid -month meeting of December be canceled due CANCELED to the Christmas Holidays. Commissioner Collins seconded the motion and it passed with a unanimous vote. Chairman Stewart recessed the meeting for the purpose of reorganization of the RECESSED FOR REORGAN. Board in accordance with Gen. Sta. 153A -39. Vanessa W. Young, Clerk to the Board, reconvened the meeting and asked for RECONVENED nominations for Chairman of Harnett County Board of Commissioners. Commissioner Hudson nominated Lloyd G. Stewart for Chairman of the Board. LLOYD G. STEWART Mrs. Young stated that Lloyd G. Stewart had been nominated for Chairman and APPOINTED CHAIRMAN asked if there were any further nominations. There being no further nominations, Mrs. Young closed the nominations for Chairman of the Board. The following vote was cast in favor of Lloyd G. Stewart for Chairmaq of the Board: Ayes: 5, Noes: 0, Abstained: 0, Absent: 0 Chairman Stewart opened the floor for nominations for Vice - Chairman. BILL SHAW APPOINTED Commissioner Collins nominated Bill Shaw for Vice - Chairman of the Board. VICE - CHAIRMAN Chairman Stewart asked if there were any further nominations. There being no further nominations, Chairman Stewart closed the nominations for Vice - Chairman of the Board. The following vote was cast in favor of Bill Shaw for Vice - Chairman of the Board: Ayes: 5, Noes: 0, Abstained: 0, Absent: 0. MID -MONTH MEETING Commissioner Shaw moved that the mid -month meeting of December be canceled due CANCELED to the Christmas Holidays. Commissioner Collins seconded the motion and it passed with a unanimous vote. 12 ADJOURNMENT There being no further business, the Harnett County Board of Commissioners meeting, December 4, 1959, duly adjourned at 12:30, G. Stewart Chairman. DOCUMENT NO. 1. DOCUMENT NO. 2. Harnett County North Carolina RESOLUTION THAT WHEREAS, Ophelia McLean began her service to Harnett County with the 'Agricultural Extension Service more than forty-three years ago; and WHEREAS, Ophelia McLean graduated from the former Shawtown High School and started to work for the Harnett County Agricultural Extension Service on April 6, 1946; and WHEREAS, Ophelia McLean's conscientious) dedication and devotion, her excellency in the performance of her duties, and her willingness and concern to help others has won her numerous acclaims for her encouragement, advice, and leadership; and WHEREAS, Ophelia McLean over her forty -three years of work has been involved in many different Agricultural Extension programs and has always been a part of the programs, insuring their success in providing the needed service; and WHEREAS, on December. 31, 1989, . after forty -three years and eight months of loyal service, Ophelia McLean will retire from the Harnett County Agricultural Extension Service. _ NOW, THEREFORE, BE IT RESOLVED. BY THE HARNETT COUNTY BOARD OF COMMISSIONERS, that Ophelia McLean will retire from her loyal and dedicated service to Harnett County with great honor and distinction. That ophelia McLean be and she is hereby commended on behalf of all the citizens of Harnett. County for her invaluable and immeasurable service. That acopy of this resolution shall be given to Ophelia McLean, '.a copy spread upon the minutes of this Board, and a copy to the media. ATTEST: of December, Nineteen Hundred and HARNETT. COUNTY. BOARD OF COMMISSIONERS L1 yd Stewart,Chairman RESOLUTION AUTHORIZING AND DIRECTING RECORDATION OF AMENDED AND RESTATED ZONING ORDINANCE THAT WHEREAS, the Harnett County .Board of Commissioners has heretofore adopted a Zoning Ordinance for said County, and WHEREAS, said Zoning Ordinance for Harnett County has from time to time after its adoption been amended, and WHEREAS, the Harnett County Board of Commissioners has determined that it would be in the best interests of said County and its citizens for such Ordinance, as it has been amended, to be recorded in the Registry for Harnett County; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF HARNETT COUNTY, .NORTH CAROLINA, that the Zoning Ordinance for the County of Harnett, as amended, copy of which is attached hereto as Exhibit A, shall be recorded in the Registry of Harnett County forthwith upon the adoption of this Resolution so providing. Duly adopted this 4th day of December, 1989. HARNETT COUNTY BOARD OF COMMISSIONERS 13 DOCUMENT NO. 3. NORTH CAROLINA, HARNETT COUNTY. RESOLUTION AUTHORIZING AND DIRECTING RECORDATION OF AMENDED AND RESTATED SUBDIVISION ORDINANCE THAT WHEREAS, on April 4, 1977 the County of Harnett, acting through its Board of Commissioners as by law provided, adopted a Subdivision Ordinance for said County which was recorded in the Registry of Harnett County, and WHEREAS, since its adoption and recordation said Ordinance has been amended from to time to time, and WHEREAS, by virtue of such amendments it is in the best interests of the County of Harnett and its citizens for there to be recorded in the Registry of Harnett County an amended and restated Subdivision Ordinance containing all of the changes, modifications and amendments made in said Ordinance from and after its adoption and inceptions NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF HARNETT COUNTY, NORTH CAROLINA, that the amended and restated Subdivision Ordinance of the County of Harnett which contains all of the changes, modifications and amendments made in said ordinance from and after its inception and adoption, copy of which is hereto attached as Exhibit A, shall be recorded in the Harnett County Registry upon and immediately after the adoption and enactment of this Resolution so authorizing and directing. Duly adopted this 4th day of December, 1989. HARNETT COUNTY BOARD OF DOCUMENT NO. 4. NORTH CAROLINA, 1 HARNETT COUNTY. RESOLUTION APPROVING RECEIPT AND ESCROW OF FUNDS THAT WHEREAS, the Subdivision Regulations for the County of Harnett require that certain improvements be made or guaranteed prior to the time that approval is granted under the terms of such Regulations, and WHEREAS, application for approval of a Subdivision named Sierra Villa Section V has been submitted, and WHEREAS, certain requirements relating to the paving of streets within such subdivision have not been met, and WHEREAS, the developer of such subdivision desires to provide to the County of Harnett a guarantee that such improvements shall be made as required in said Subdivision Regulations and that said subdivision will comply with all of said regulations, and WHEREAS, such action is permitted by Article V, Section 5.1 of the Subdivision Regulations of Harnett County, and WHEREAS, a proposal of Johnson Brothers Utility and Paving Co., Inc. for the making of such improvements for the sum of $9,581.60 has been presented to the County of Harnett, and WHEREAS, said developer has deposited with the County of Harnett an Official Bank Check drawn on Mid South Bank and Trust Company in the amount of $10,000.00, in order to guarantee the making of such improvements; NON, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that the receipt of said sum, to wit: $10,000.00 from such developer to be held in escrow by said County for the purposes aforesaid shall be and same is hereby approved, with said funds to be refunded to the party remitting same upon compliance with all provisions of the Subdivision Regulations of the County of Harnett, or in the alternative, failing such compliance, then for application pursuant to said regulations, and the Finance Officer of the County shall be and she is hereby authorized to receive said funds and to make disposition thereof under the terms of the authority hereby granted. This 4th day of December, 1989. HARNETT COUNTY BOARD OF COMMISSIONERS n J 14 DOCUMENT NO. 5. ■ RESOLUTION AMENDING THE HARNETT COUNTY EMERGENCY MEDICAL SERVICES OPERATING POLICIES FOR HARNETT COUNTY, NORTH CAROLINA, ADOPTED JANUARY 3, 1989 THAT WHEREAS, the Harnett County Board of Commissioners adopted the Harnett County Emergency Medical Services Operating Policies on January 3, 1989; and WHEREAS, this Board is of the opinion that the amendment set forth below is necessary to the clear and efficient working of the Operating Policies. NOW THEREFORE, BE IT RESOLVED that Section 3.2 of the Operating Policies is hereby amended to include the additional provision provided below. Amendment 2.4 To insure that personnel are trained and certified as authorized by Budget Position description, the following requirements will be adhered to for positions except the Captain EMT I and EMS Clerk III. A. An employee of the Harnett County EMS Unit will be trained and certified as indicated by the Budget Position description. B. Failure to meet training and certification requirements will be considered nonqualified based on job requirements and will be terminated as an employee in accordance with the provisions of the Harnett County Personnel Ordinance. C. An employee's failure to maintain certification at the level designated in the Budget Position description level will be terminated as an employee in accordance with the provisions of the Harnett County Personnel Ordinance. The EMS Captain, Chief of the EMS Unit, may allow the employee six months to be recertified at the required Budget Position description level. Duly adopted by the Harnett County Board of Commissioners this 4th day of December, 1989. DOCUMENT NO. 6. HARNETT COUNTY BOARD OF COMMISSIONERS RE: NOTICE OF TAX SUITS COMMENCED; TAX SUITS DISMISSED AND RELATED SERVICES MONTH OF NOVEMBER 1989 NAME SUIT NO. *AMOUNT COL. * *COURT ATTORNEY COSTS FEES Anderson Creek Township Ward, Johnny Ray n/a _ 459.12 75.00 75.00 Averaeboro Township Hargrove, Virginia L. 88 CvD 1049 515.99 237.10 190.00 McCall., . James E. & Minnie 88 CvD 0935 576.34 245.50 190.00 McLamb, Peggy H. 89 CvD 1270 1,367.54 246.40 190.00 Norris, Donnis & S. 88 CvD 1170 1,653.40 244.30 190.00 Norris, Ronnie L. n/a .226.92 50.00 50.00 Taylor, Robert L. & J. n/a 107.26 -0- -0- Warren, Clifford & 89 CvD O_ °94 597.20 241.10 190.00 Ella Barbecue Townsh +D Fennell, Charles D. 89 CVD 1018 4.68.83 195,25 140.00 Gentry, Donna S. 89 CvD 1265 511.79 195.00 140.00 Jernigan, Ronald H. 89 CvD 0944 560.11 237.50 190.00 Wooten, J. D. & 89 CVD 0956 394.96 185.20 140.00 Bedsaui, Clint F. Black River Township Jones, Andrew 89 CvD 1216 1,623.46 249.00 190.00 Duke Townshyg Lockamy, Francis N. 89 CvD 0627 512.49 235.00 190.00 Hayes, James B. & M. 89 CvD 0626 468.34 239.00 190.00 Holliday, Abraham & 89 CvD 0573 1,372.91 239.00 190.00 Carrie B. Lee, Phillip W. & V 89 CvD 0645 1,217.44 240.40 190.00 I Grove Township McNeill, Ruth Langdon 89 CvD 1017 1,541.12 236.15 190.00 Hector's Creek Township Date Explanation Charge 11 -8 -89 Nester, Heirs of M. S. 89 CvD 1085 653.40 245.00 200.00 Johnsonville Township McGilberry, Calvin 6 V 89 CvD 0624 640.15 239.00 190.00 Stewart's Creek Township Lillington Postmaster CvD 1081 365.04 236.40 190.00 Cameron, Carrie Jean 88 Upper Little Kelly, Emma River Townshin 88 CvD 1194 1,127.66 235.00 200.00 Morrison, William 88 CvD 1404 1,083.46 335.45 290.00 Alvin Subtotal $18,044.91 $4,881.75 $3,895.00 NOTE: + Total collected includes taxes, interest and Court costa. *+ Court costs includes attorney fees allowed by Court. New Suites Blue, Norman 89 CVD 1390 10.00 Brown, Timothy M. 89 CvD 1391 Subtotal 20.00 TOTAL ATTORNEY'S PER $3,915.00 Advanced Costs: Date Explanation Charge 11 -8 -89 Lillington Postmaster - restricted mail Norman Blue - 89 CvD 1390 8.40 11 -8 -89 Lillington Postmaster - restricted mail John Stewart - 89 CVD 1266 4.20 11 -8 -89 Lillington Postmaster - postage Timothy M. Brown - 89 CvD 1391 1.40 11 -30 -89 Lillington Postmaster - restricted mail John Stewart - 89 CvD 1266 4.20 Total Advanced Costs $18.20 BALANCE DUE M E. Marshall Woodall - Poet Office Box 39 Lillington, NC 27546 Telephone: (919) 893 -5191 15 16 HARNETT COUNTY BOARD OF COMMISSIONERS SPECIAL MEETING, DECEMBER 18, 1989 The Harnett County Board of Commissioners met in special session on Monday, December 18, 1989, in the County Office Building, Lillington, North Carolina, with the following members present: Bill Shaw, Mack Reid Hudson, Mayo Smith, and Chairman Lloyd G. Stewart presiding. Commissioner Rudy Collins was absent. 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 7 p.m. Commissioner Smith offered the invocation. PUBLIC HEARINGS Carla Stephens, Planning Director, briefed the group that there would be two RE: ZONING DISTRICT public hearings concerning applications for proposed zoning district changes CHANGE APPLICA. and explained the purpose was to obtain public comments concerning the proposed zoning district changes. DAVID COOMER Chairman Stewart called to order a public hearing concerning application for David Coomer, from RA -40 Zoning District to RA -30 Zoning District, located in Stewart's Creek Township on S.R. 2038. Carla Stephens, Planning Director, presented the application to the Board. Chairman Stewart opened the meeting for public comments. No comments were offered and Chairman Stewart closed the public hearing concerning application for proposed zoning district change for David Coomer. ROETTA TAYLOR Chairman Stewart called to order a public hearing concerning application for Roetta Taylor, from Commercial Zoning District to RA -30 Zoning District, located in Upper Little River Township, S.R. 1274. Carla Stephens, Planning Director, presented the application to the Board. Chairman Stewart opened the meeting for public comments. No comments were offered and Chairman Stewart closed the public hearing concerning application for proposed zoning district change for Roetta Taylor. CONSIDERATION OF The Board considered the following applications for zoning district change: ZONING CHANGE APPLICATIONS 1. David Coomer, from RA -40 Zoning District to RA -30 Zoning District, located in Stewart's Creek Township on S.R. 2038. The Planning Board recommended approval of the application. Commissioner Shaw moved that the zoning district change application request be approved. Commissioner Smith seconded the motion and it passed with a unanimous vote. 2. Roetta Taylor, from Commercial Zoning District to RA -30 Zoning District, located in Upper Little River Township on S.R. 1274. The Planning Board recommended disapproval of the application. Commissioner Shaw moved that the zoning district change application be denied. Commissioner Hudson seconded the motion and it passed with a unanimous vote. SUBDIVISION PLAT Carla Stephens, Planning Director, presented a subdivision plat for FOR SIERRA VILLA Sierra Villa, Section Five, consisting of 12 lots owned by Gene Taylor, and SECTION S located in Anderson Creek Township on S.R. 1120. Commissioner Shaw made a motion to approve the subdivision plat with a completion date for road construction for the subdivision to be June 30, 1990. Commissioner Smith seconded the motion and it passed with a unanimous vote. EXECUTIVE SESSION Commissioner Hudson moved that the Board go into executive session. Commissioner Shaw seconded the motion and it passed with a unanimous vote. Commissioner Hudson moved that the Board come out of executive session. Commissioner Shaw seconded the motion and it passed with a unanimous vote. RECESSED 4 RECON. Chairman Stewart recessed the meeting to reconvene in the Assembly Room with IN ASSEMBLY ROOM the Buies Creek -Coats Water and Sewer District Advisory Board where a discussion was held concerning membership of Cape Fear Regional Wastewater System Board involving Buies Creek -Coats Water and Sewer District and Harnett County. ACTION Commissioner Hudson made a motion that a resolution be prepared by the Public Utilities Attorney for the Buies Creek -Coats Water and Sewer District Advisory Board to designate two members to work with the Cape Fear Regional Wastewater System Board. Commissioner Smith seconded the motion and it passed with a unanimous vote. RECESSED $ RECON. Chairman Stewart recessed the meeting in the Assembly Room and reconvened in IN COMMISSIONERS the Commisisoners' Board Room. BD. ROOM RESOLUTION RE: Dallas H. Pope, County Manager, presented a Resolution Authorizing Execution AGREEMENT WITH of Agreement with the Town of Angier concerning the Cape Fear Regional TOWN OF ANGIER FOR Wastewater System. Commissioner Smith moved for the adoption of the CAPE FEAR WASTEWATER resolution. Commissioner Shaw seconded the motion and it passed with a SYSTEM unanimous vote. The resolution with agreement attached as Exhibit "A" is copied in full at the end of these minutes dated December 18, 1989, as document no. 1. RESOLUTION RE: Dallas H. Pope, County Manager, presented a Resolution Authorizing Execution AGREEMENT WITH TOWN of Agreement with the Town of Lillington concerning the Cape Fear Regional OF LILLINGTON FOR Wastewater System. Commissioner Shaw moved for the adoption of the CAPE FEAR WASTEWATER resolution. Commissioner Hudson seconded the motion and it passed with a SYSTEM unanimous vote. The resolution with agreement attached as Exhibit "A" is copied in full at the end of these minutes dated December 18, 1989, as document no. 2. SPECIAL MEETING OF Chairman Stewart called to order a special meeting of the Harnett County Board BUIES CREEK -COATS of Commissioners sitting as the governing body of the Buies Creek -Coats Water W $ S DISTRICT and Sewer District. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented a Resolution AGREEMENT WITH COUNTY Authorizing Execution of Agreement with the Buies Creek -Coats Water and Sewer FOR CAPE FEAR WASTE- District concerning the Cape Fear Regional Wastewater System. Commissioner WATER SYSTEM Hudson moved for the adoption of the resolution. Commissioner Smith seconded the motion and it passed with a unanimous vote. The resolution with agreement attached as Exhibit "A" is copied in full at the end of these minutes dated December 18, 1989, as document no. 3. ADJOURNED BUIES CREEK Chairman Stewart adjourned the meeting of the Harnett County Board of COATS MEETING Commissioners sitting as the governing body of Buies Creek -Coats Water and Sewer District. RESOLUTION RE: John M. Phelps, II, Public Utilities Attorney, presented a Resolution AGREEMENT WITH Authorizing Execution of Agreement with the Buies Creek Coats Water and Sewer BUIES CREEK -COATS District concerning the Cape Fear Regional Wastewater System. Commissioner FOR CAPE FEAR WASTE- Hudson moved for the adoption of the resolution. Commissioner Smith seconded WATER SYSTEM the motion and it passed with a unanimous vote. The resolution is copied in full at the end of these minutes dated December 18, 1989, as document no. 4. The agreement is copied as Exhibit "A" in document no. 3. ADJOURNEMENT There being no further business, the Harnett County Board of Commissioners Special Meeting, December 18, 1989, duly adjourned at 9:40 p.m. DOCUMENT NO. 1. Lloyb G. 9tewart, Chairman Kq� , d . dA4'P_Jt � Kay S. Blanchard, Recor ing Secretary Vanessa W. Young, Cl t1k to a Board RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT WITH THE TOWN OF ANGIER REGARDING THE CAPE FEAR REGIONAL WASTEWATER SYSTEM WHEREAS, the Harnett County Board of Commissioners, (hereinafter sometimes referred to as the "Board ") has heretofore caused a comprehensive wastewater study to be conducted for the purpose of examining and analyzing the wastewater facilities needs of Harnett County; and WHEREAS, pursuant to the recommendations of said study, the County of Harnett formulated a plan to construct a wastewater facility system designated as the Cape Fear Regional Wastewater System; and WHEREAS, the County of Harnett has requested the Town of Angier to participate in the construction and use of said System and the Town of Angier has agreed so to do; and WHEREAS, attached to this Resolution as Exhibit "A" is a copy of an Agreement between the County of Harnett and the Town of Angier setting forth the various details of the agreements of said parties with respect to the Cape Fear Regional Wastewater System; and WHEREAS, upon review and consideration of said Agreement, it is the finding of the Board that the construction of said regional wastewater system will be of great benefit to the current and future health and well being of the citizens of Harnett County and the Town of Angier; and 17 Ons Mus WHEREAS, it is the desire of the Board that the County of Harnett enter into said Agreement so to implement the Cape Fear Regional Wastewater System. NOW, THEREFORE, . BE IT. RESOLVED by the Harnett County Board of Commissioners that: 1. The County of Harnett shall and is hereby authorized to enter into the Agreement between said County and the Town of Angier, a copy of which is attached hereto as Exhibit "A ". 2. The appropriate officers of the County of Harnett are hereby directed to execute the originals of said Agreement. Duly adopted this 18th day of December, 1989 upon motion made by commissioner Smith , seconded by Commissioner Shaw , and adopted by the following vote: Ayes 4 Noes 0 Abstained o Absent _1_ Harnett County Board of Commissioners By: ALh L y G. Stewart, Chairman Attest: I,(r Vanessa W. Young, Olerk to the Board EXHIBIT 11A" NORTH CAROLINA HARNETT COUNTY AGREEMENT THIS AGRKEMENT is made and ent.o ed into th.i.s. 18th_ day of December, 1989 by and between the COUNTY OF HARNETT a body politic organized and existing under the laws of the State of North Carolina (hereinafter sometimes referred to as the "County ") and the .TOWN OF ANGIER, a municipal corporation organized and existing under the laws of the State of North Carolina (hereinafter sometimes referred to as the "Town "); W I T N E S S E 'T H THAT WHEREAS, the County has caused a Comprehensive Wastewater Study to be conducted for the purpose of examining and analyzing the wastewater facilities needs of Harnett County; and WHEREAS, one of the results of that Study was the identification of a need for a regional sewer collection and treatment system to serve several local governmental entities existing In the central portion of Harnett County;. and WHEREAS, in order to meet the demands of the existing and future wastewater disposal needs as identified, the construction of a wastewater facility system, designated as the Cape Fear Regional Wastewater System, has been recommended; and WHEREAS, the plans for the Cape Fear Regional .Wastewater System include the replacement of the existing waste treatment facilities serving the Town of Lillingt-on, the Town of Angier and the Buies Creek - Coats Water and Sewer District of Harnett County, the construction of a new regional. wastewater treatment facility and the construction of main interceptor pipelines to connect the above named local governmental entities to the new treatment facility; and WHEREAS, in anticipation of the need for construction of wastewater facilities in Harnett County, the Board of Commissioners of Harnett County requested Federal and State assistance in funding the construction of the Cape Fear Regional Wastewater System; and a 19 WHEREAS, pursuant to the North Carolina Clean Water Revolving Loan and Grant Act of 1987 and,*the provisions of the Federal Water Quality Act of. 1987, the State of North Carolina, through its Itivi.::ion of tlnvi.rnnmental Management, Ucp,:r.trnenl: of I ?nviroument, Health and Natural. Resources, advised the County that monies for a .Loan to fund the costs of the Capo Fear Regional. Wastewater System have been reserved for Harnett county; and WHEREAS, the County determined that it desired to proceed with the implementation, construction and eventual operation of the Cape Fear Regional Wastewater System, and in connection therewith requested the Town of Angier to enter into an agreement with the County regarding the participation of the Town in said System; and WHEREAS, the Board of Commissioners of the Town of Angier has determined that the Cape Fear Regional Wastewater System will be of great benefit to the health and well being of the citizens of the Town of Angier, and WHEREAS, the Town has therefore determined that it desires to participate in the Cape Fear Regional Wastewater System; and WHEREAS, pursuant to the provisions of Chapter 160A, Article 20, Part 1 of the North Carolina General Statutes entitled "Int:erl.ocal Cooperation, Joint Exerrlf;e of Powers," thr� County and the Town desire to enter into this Agreement with respect to the Cape Fear. Regional Wastewater System setting forth the terms and conditions of their mutual agreements regarding the same. NOW, THEREFORE, in consideration of the mutual 'I representations, warranties, covenants and agreements herein contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the County and the Town agree as follows: SECTION I Definitions The following definitions, designations and /or explanation of terms shall be used for the purposes of this Agreement: A. "Project" shall refer to the Cape Fear Regional Wastewater System construction project. B. "Regional Treatment Facility" shall refer to the wastewater treatment and disposal facility to be constructed as pal L of the project, and thereafter nwneil, op„r-atod, managed and maintained by the County, except as hereinafter set forth. C. "Regional Interceptor 1'.1.pel.ino" shall retei. to the wastewater interceptor pipeline to be constructed and installed as part of the Project which shall connect: the existing system of the Town to the wastewater interceptor pipeline (also to be constructed and installed as part of the Project) which shall run parallel to the Cape Fear River to the Regional Treatment Facility. As now provided in design criteria, said "Regional Interceptor Pipeline" shall have a hydraulic capacity of 1,300,000 gallons per day. D. "Regional System" shall refer to the entire wastewater collection, treatment and disposal system constructed and installed pursuant to the Project, and shall include all lands required for the installation of the same, together with continuous and adequate easements and rights of way over other lands necessary to erect, 20 construct, install and lay and thereafter use, operate, inspect, repair., replace, remove, change tho size of such fac.i Cities as named, and in addition shall in<;lude the Regional Treatment Facility, the Regional Interceptor. pipeline and the Town Effluent Meter. E. "Town Effluent Meter" shall refer to that meter facility and related appurtenances constructed or otherwise provided for as part of the Project to which wastewater from the Town shall be transmitted by the Town and which shall measure the quantity of wastewater being delivered by the Town into the Regional Interceptor Pipeline. F. Any terminology referring to the existing collection system of Town shall mean that network of sewer collection pipelines, mains and /or related facilities composing the Town's sewer collection system as shall exist on the date the County commences accepting wastewater from the Town into the Regional System. G. Any terminology referring to the existing treatment facilities of Town shall mean those facilities, facility sites, lagoons, lagoon sites, basins, basin sites, land application systems, land application system sites, and all appurtenances ,"ciatad therra:o comprising the Town':. :sewer treatment :111(1 d.i.sposal facilities an shall exist on the date the County commences accepting wastewater from the Town into the Regional system. if. "Funding Agency" shall vor:er to the Division of Environmental Management, Department of Environment, Health and Natural Resources of the State of North Carolina, or any successor agency thereto. I. "County Department of Public utilities" shall refer to the Harnett County governmental department existing as of the date of this Agreement .which administers, operates, and otherwise manager, the public water and sewer nystcmis owned and /or operated by the County, and shall include any other successor department or subdivision of the County which shall perform such functions. J. Any terminology referring to the local governmental entities involved with the Project shall refer to the Town, the County, the Town of Lillington and the Buies Creek -Coats Water and sewer District- of Harnett County. A reference to the other local governmental entities involved with the Project shall mean the remainder of the above named local governmental entities not specifically the subject of the particular provision within which the reference is made. K. "Regional Board" shall refer to the Cape Fear Regional Wastewater Board as established in Section %IV of this Agreement. SECTION II Term This Agreement shall be a continuing contract relative to the furnishing of essential wastewater treatment and disposal services for the citizens of the Town, and shall exist and continue until the County and the Town shall mutually modify or terminate the same, BUT IN NO EVENT shall the same terminate until the loan (including principal and interest) described in Section III has been paid in full. 21 SECTION III Funding Agency and Funds for Construction A. ;",undina Source The funds for construction of the Project are anticipated to be r,uppl..i.ed in the form of a loan made to the County pursuant to the North Carolina Clean Water Revolving Loan and Grant Act of 1987 and the provisions of the Federal water Quality Act of 1987 as administered by the Division of Environmental Management, Department of Environment, Health and Natural. Resources of the State of North Carolina. The terms of this Agreement are conditioned upon the receipt of said loan and approvals required therefor, and in the event said loan is not obtained by the County, or the Regional System is otherwise not constructed, then the County shall have no obligations hereunder to the Town, and the Town shall have no obligations hereunder to the County. B. Aareement Subject to Requirements of Funding Agency The County and Town agree to comply with all the conditions and requirements imposed by the Funding Agency, which shall ..include, but not be limited to, the Revolving Loan conditions, the establishment of pretreatment requirements, and the adoption of appropriate newer use ordinances and user charge systems. C. Town to Act in Timely Manner when, in the course of providing the various ordinances, information and /or other documents to the Funding Agency, the County must obtain such items from the Town prior to submission to the Funding Agency, the Town agrees to prepare, adopt and /or otherwise provide the same to the County in a timely manner. D. Loan_ Payment Sources All funds paid by the County and the Town as principal and interest on the aforementioned loan shall be derived only from those sources specified by the Funding Agency. SECTION IV Construction and Ownership of Regional System �TiTT, 37 The County shall be responsible for administering and managing the construction and installation of the Regional System and in cunnec1.ion therewith shall: 1. Cause the appropriate pre-construction studies to be completed as are required by the Fund.inq Agency and any other State or Federal agencies. -} 2. Cause such funding and permit applications as may be required to be completed and filed with the appropriate Federal. and State agencies. 3. Cause plane and specifications for the Regional System to be completed in accordance with acceptable engineering practices and procedures, and in complinncr with applicable rules, regulations and requirements of the Funding Agency and such other State and Federal agencies as may be applicable. 22 4. Obtain and acquire in its name continuous and adequate easements and rights of way on private lands necessary to erect, construct, install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect the Regional System.. 5. Obtain and acquire in its name permits, franchises, and authorizations or other instruments by whatsoever name designated, from public utilities and public bodies, commissions or agencies such as are necessary to erect, construct, :install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect the Regional System upon, along or across streets, roads, highways and public.. utilities. 6. Obtain and acquire in its name such parcels of real property as are necessary for the construction of the Regional Treatment Facility, pump stations, Ellie. any .- ..�.� -••� -- structure required for the completion of the Regional System. -7. Cause the contract . or contracts for construction and installation of the Regional System to be advertised in accordance with applicable law, and to thereafter award and enter into such contract or contracts for said construction and installation as the County deems in the best interest of the Regional System. The determination as to which bidder or bidders shall be awarded contracts shall be made by the County. 8. Cause the installation and construction of the Regional System to be supervised by qualified and competent engineers. 9. Provide for the administration of the construction and installation of the Regional System and to provide for inspection of the same. 10. Provide for the administration of the funds obtained for the implementation, construction and installation of the Regional System. 11. Otherwise, manage the implementation, construction and installation of the Regional System. S. Ownership of Regional System The Regional System shall be and remain the property of the County, and the Town shall have only that right, title or interest as expressly provided in this Agreement. it is understood that except as to the rights of the Town expressly provided in this Agreement, as owners of the Regional System; the County may operate, maintain, manage, regulate and control the same, subject to the terms of this Agreement, and otherwise exercise with respect thereto any rights, authorities or privileges it may be granted by statute. C. Joint Cooperation During the course of the implementation, design and construction of the Regional System, the Town and the County agree to collaborate and cooperate with respect to the gathering of the documentation, data and /or other information necessary to properly design and construct the Regional System. Additionally, when requested by the County and /or the contractor(s) the Town agrees to cooperate with the said County and /or the contractor(s) with respect to the testing of the Regional System, and preparation for connection of the same to the existing collection system of the Town. 23 D. Conveyance of Easements The Town agrees to convey to the County, without charge, easements and rights of way over, upon and across properties owned by the Town when such easements and rights of way are necessary to inuLall nud con:ae'ucl: the Regional. lute —eptnr Pipeline, and /or otherwise necessary to connect the Rex)ional Interceptor Pipeline to the Town Lf:fluent Meter. SECTION V capacity Allocations in Regional System A. Manner of Expression The allocations of capacity in the Regional System shall be expressed in terms of treatment capacity in the Regional Treatment Facility. B. Town Allocation. The Town shall have allocated and reserved for treatment of its wastewater twenty -five (256) percent of the treatment capacity of the Regional Treatment Facility. It is understood that the capacity of the Regional Treatment Facility is to be two million (2,000,000) gallons per day, and that therefore, the allocation and reservation herein made to the Town equals five hundred thousand (500,000) gallons per day. C. Burin. "in,g PL11oeations. The remaining seventy-five (756) percent of the treatment capacity of the Regional Treatment Facility shall be allocated to the other local governmental entities involved with the Project or retained by the County for its use. i SECTION VI Payment for Capacity Allocations in Regional System A. Loan Determination The amount of the loan awarded for the construction and installation of the Regional System shall be determined pursuant to the directives of the Funding Agency. As soon as practicable after final determination of the loan amount and related debt instrument details, the County shall provide such information to the Town. B. Loan Payment Portion Payable by Town The Town shall pay that portion of each and every payment due on the loan obtained through the Funding Agency as hereinafter provided: 1. The portion of each l,.Iynient made by thu Town shall equal the product of the total amncmt of the principal and /or i.nl:erest due for such payment multipl.:i.od by the percentage of the capacity allocation in the Regional System allocated and reserved for the Town herein. 2. The portion of the payment to be made by Town shall be paid to the County at least fifteen (15) days prior to the due date of the same. 3. It is understood that according to the Funding Agency, principal payments will be made annually on or before May 1 of each year, and that all interest payments will be made semiannually on or before May 1 and November 1 of each year. The portion of the payments to be made by Town as herein provided shall apply to both the principal and interest and the interest only payments due on the loan. 24 C. Remainder of Loan Payments The remaining portion of the loan payment for the Regional. System, that is, that portion not: paid by Town, shall be obtained by the County from the other governmental entities participating in the Project, and /or supplied by the County. D. Transmission of Loan 'Payment The County shall be responsible for transmitting the loan payments to the Funding Agency or other appropriate agency as directed by the Funding Agency.. County shall make said payments on a timely basis and any penalty or late charges shall not be paid by Town, provided Town has made its payment by the time required in Section VI (B) (2). E. Costs in Excess of Loan It is the understanding of the County and the Town that the current estimated Project cost is $7,500,000. The County and the Town agree that should the Project exceed one percent (i %) of the estimated Project cost, including closing costs and other costs associated therewith then the Town shall have the option of either retaining its level of capacity allocations in the Regional System herein agreed upon, and thereby incur its share of the additional costs for the same, or reduce its level of capacity allocation in the Regional System herein agreed upon and thereby not incur the additional costs. In the event that during the pre - construction phases of the Project it becomes apparent that the estimated Project cost, together with closing costs and other costs associated therewith, shall exceed $7,500,000 by more than one percent (1%) of such amount, then the County shall notify all entities involved with the Project so that they may collaborate and cooperate as to cost overruns. The Town shall determine which option it desires, and shall advise the County as to such determination within twenty (20) calendar days after notification to the Town of the apparent cost overrun. Unless otherwise agreed, if the Town shall elect to retain its level of capacity allocation as described above, or if the Project exceeds $7,500,000 by less than one percent (18) thereof, then the Town shall pay such portion of the applicable excess as equals said excess multiplied by the percentage of the capacity allocation in the Regional System allocated and reserved for the Town herein. SECTION VII Wastewater Treatment and Metering A. County to Treat Town Wastewater County agrees to treat at the Regional Treatment Facility during the term of this Agreement or any renewal or extension thereof, quantities of wastewater which flow through the Town Effluent Meter up to and including the maximum amount of Five hundred thousand (500,000) gallons per day, which said maximum amount equals the allocation made and reserved for the Town herein. 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 Environment, Health and Natural Resources. B. Town Effluent Meter County agrees to furnish and install as part of the Project and thereafter operate and maintain at such point as is 25 agreed upon by the engineers for the Regional System and the engineers employed by the Town the necessary metering equipment, including a meter house or pit, and the required devices of standard type for properly measuring the quantity of wastewater transmitted into the Regional Interceptor Pipeline for treatment and to calibrate such metering equipment whenever requested by Town, but not more frequently than once every twelve (12) months. However, the Town may obtain independent verification of the calibration of the metering equipment. In this event, should the test result be deemed to be accurate, (as hereinbelow, stated), then the Town shall pay the costs of obtaining such test. If the test result is not deemed to be accurate, (as hereinbelow stated), then the County shall pay the costs of obtaining the test. A meter registering not more than two (2B) percent above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the three (3) months previous to such test in accordance with the percentage of inaccuracy found by such tests. If the meter fails to register for any period, the amount of wastewater treated during such period shall be deemed to be that amount of wastewater which equals the average monthly reading for the three (3) months previous to such failure, unless County and Town shall agree upon a different amount. Appropriate officials of Town shall have access to the meter at all reasonable times in order to verify readings. C. Meter Readings The Town Effluent Meter shall be read by the County on the first day of each month. SECTION VIII Operation and Maintenance of Regional System A. Management of Regional System Except as otherwise set forth in this Agreement, the Regional System shall be managed, operated, and maintained by the County throuyh its Department of Public Utilities, as it County operated public enterprise, and in connection therewith the County shall.: 1. Formulate and thereal -I.nr maintain proper accounting procedures with respect to the Regi.ona.l. System in accordance with the North Carolina Local Government Budget and Fiscal Control Act as set forth in Article 3, Chapter 159 of the North Carolina General Statutes. 2. Operate and maintain the Regional System on an annual budget, which budget shall be formulated and maintained in accordance with the North Carolina Local. Government Budget and Fiscal Control Act- as set forth in Article 31 Chapter 159 of the North Carolina General Statutes. 3. Contract with a certified public accountant for annual audits of the Department of Public Utilities and the Regional System accounting procedures and records. 4. Obtain, and thereafter maintain, insurance and bonds or; required by State law. 26 5. Comply with all Federal, State, and Local laws and regulations relative to the management, operations and maintenance of the Regional System. 6. Invoke moratoriums in accordance with Section VIII (G) hereof to prevent the addition of wastewater customers to the Regional System and /or the increase in wastewater flow into the Regional System so as to protect the allocation in the Regional System reserved for the Town herein. 7. Invoke surcharges in accordance with Section VIII (F) hereof upon the local governmental. entities involved with the Project, in the event such entities exceed their maximum flow input amounts (reserved allocations) into the Regional System. 8. Report to the Town on a monthly basis, or upon request, with respect to wastewater flow from all the entities involved with the Project and other matters as are appropriate. 9. Otherwise, provide for the orderly and efficient management, operation, and maintenance of the Regional System. B. Operations and Maintenance Px,_pense Provided by Town 1. The Town shall, on a monthly basis, provide that portion of the costs incurred for Operations and Maintenance of the Regional Syst:pm as is described herein. said monthly cost shall be based upon a Bulk Municipal Sewer Rate as hereinafter formulated. 2. The portion of the costs incurred for operations and Maintenance of the Regional System to be provided by Town shall be that amount of money which equals the product of the Bulk Municipal Sewer Rate multiplied by the number of gallons of wastewater transmitted into the Regional Interceptor Pipeline as measured through the Town Effluent Meter. 3. The Bulk Municipal sewer Rate (hereafter "Bulk Rate ") shall be the Operations and Maintenance expense of the Regional System expressed in cost per one thousand (1000) gallons of wastewater treated. The Bulk Rate shall be determined on an annual cycle, and shall be based upon demonstrable expenditures for the operations and maintenance of the Regional system as indicated on the accounting records for the Regional System, together with anticipated increases or decreases in the same. The Bulk Rate shall be determined as follows: (a) The total amount of Operations and Maintenance costs incurred by the County during a fiscal year shall be calculated. (b) Such total amount of Operations and Maintenance costs shall then be divided by the number of gallons of wastewater treated at the Regional Treatment facility during the corresponding fiscal year. The per gallon cost thereupon derived shall be multiplied by one thousand (1000) to determine actual cost per one thousand (1000) gallons. (c) The actual cost per one thousand (1000) gallons shall thereupon be adjusted to reflect projected and anticipated increases or decreases in the Operations and Maintenance expenses reasonably expected to be incurred by the County in the forthcoming rate period. (d) The actual cost. per one thousand (Inou) gallons adjusted as provided in (c) above shall be the Bulk Rate for the next fiscal year. 27 h. Prior to the adoption of a bulk rate, the County shall seek the advice and recommendations of the Regional Board with respect thereto, and shall provide documentation to the regional Board to support its conclusions and opinions regarding the name. 5. on or before April 1 of each year, the County shall advise the Town of an estimate of the bulk rate it intends to adopt and shall adopt such rate on or before May 1 of each year.. 6. The Town shall be furnished by the County, not later than the tenth (10th) day of each month, an itemized statement or bill (including the amount of wastewater treated, the rate and the amount due) for the amount of wastewater transmitted into the Regional Interception Pipeline through the Town Effluent Meter during the preceding month, as established by the meter readings made on the first day of each month. 7. The Town shall pay to the County the amount billed to them by the County on or before the twentieth (20th) day of the month in which the bill is rendered. C. Procedures Prior to Imolem5; nl,�t ion_ noel. Cvcle 1. The Bulk Municipal Sewer Rate, prior to the implementation of the Annual Cyclical Procedures outlined in Section B above, shall be determined as follows: (a) During the period beginning on the date the County commences accepting wastewater from the Town into the Regional System and continuing through the end of the fiscal year following the fiscal year during which wastewater is first accepted, the Bulk Municipal Sewer Rate shall be based upon estimated operations and Maintenance expenses of the Regional System as determined by the County and the Project engineers. (b) During the first year in which the Annual Cyclical Procedures are implemented, the Bulk Municipal Sewer Rate shall be based upon demonstrable expenditures for the operations and maintenance of the Regional system as indicated on the nccount.i.ng rn,:ordrn for the Regional Systvin made durin(l the first fiscal year of its operation (that period beginning on the date the County commences accepting wastewater from the Town into the Regional. System and continuing through the end of the same fiscal year.), together with projected and anticipated increases or decreases in the operations and maintenance expenses reasonably expected to be incurred by the County in the forthcoming rate period. 2. The first billing to the Town shall be made not later than the tenth (10th) day of the month following the month during which the County commences accepting wastewater from the Town. 3. All other procedures provided in Section B above shall be utilized in the calculating of the monthly bill to be rendered to and paid by Town. D. System Failure The County will, at all times., operate and maintain the Regional. System in an efficient manner and will take such action as may be neces,ary to furnish sewer services to the Town. Temporary or partial system failures shall be remedied with all possible dispatch. Any reduction in services to the Town shall be 28 reduced or diminished in the same ratio or proportion as the same is reduced or diminished with respect to the other local governmental entities involved in the Project. Emergency failures caused by main pipeline breaks, power failure, flood, fire, earthquake, or other catastrophe shall excuse the County from the obligation to provide sewer services, to the Town for such reasonable period of time as may be necessary to restore service. E. Indemnification of Town The County shall and hereby does indemnify and hold harmless the Town from and against- all costs, .loss, expenses, (including attorney's fees), claims,suits and judgments whatsoever in connection with any and all liability arising out of any error or omission made or caused by the County and /or its officers, agents and employees in connection with any of the Regional System operated by the County. F. Su ;:charges 1. Invoking Surcharges, The County shall invoke surcharges upon the local governmental entities involved with the Project when such entities: (a) Discharge into the Regional System a quantity of wastewater which exceeds such entities maximum flow input amounts (reserved allocations), hereinafter referred to as "excess use surcharges" or (b) Discharge into the Regional System wastewater which violates the regulations of the applicable federal, state, and /or local governments and /or agencies, hereinafter referred to as "violation caused surcharges. 2. Excess Use Surcharges. The procedures for processing excess use surcharges shall be as follows: (a)' Such surcharges shall be imposed and calculated based on each monthly meter reading period. (b) The surcharges shall be invoked effective the monthly meter reading period during which the excess use first occurs and shall continue until such use is ended. (c) The amount of the surcharge shall be calculated based upon the surcharge as set by the Regional Board. (d) Surcharges shall be payable twice a year, on or before May 1 and November 1. Such surcharges shall be distributed as provided in Section 3 below. 3. Distribution of Excess Use Surcharges. Surcharges imposed and collected by reason of excessive discharges shall be distributed among the local governmental entities involved with the Project as follows; subject, however to the conditions set forth in (e) and (f) below: (a) For each month the Town of Lillington exceeds its reserved allocation, the surcharge assessed to it shall be paid 368 to the Town of Angier, 368 to the Suies Creek -Coats Water and Sewer District of Harnett County, and 288 to the County of Harnett. (b) For each month the Town of Angier exceeds its reserved allocation, the surcharge assessed to it shall be paid 408 to the Town of Lillington, 338 to the Buies Creek -Coats Water and Sewer. District of Harnett County, ..:nd l.' /% to the County of Harnett. (c) For each month the Bui.es.Creek -Coats Water and Sewer District of Harnett County exceeds its reserved allocation, the surcharge assessed to it shal.l he paid 338 to the Town of Angier, 408 to the Town of Lillington, and 278 to the County of Harnett. 29 (d) For each month the County of Harnett exceeds Its reserved allocation, the surcharge assessed to it shall be paid 318 to the Buies Creek -Coats Water and Sewer District of Harnett County, 318 to the Town of Angier, and 384 to the Town of Li.l .l.i.ngton. (e) The above distribution percentages have been calculated assuming that the respective reserved allocations for the entities involved with the Project are as follows: I. Lillington- 600,000 gallons per day ii. Angier- 500,000 gallons per day iii.. Buies Creek - Coat:: District- 500,000 gallons per day iv. Harnett County- 400,000 gallons per day In the event that any one or more of the entities has increased its reserved allocation by expansion, purchase or otherwise, the percentages as set forth in paragraphs a - d above shall be modified and shall be stated as that portion which each entity owns, expressed as a percentage of the reserved allocations of all receiving entities. (f) In the event the total amount of gallons of capacity used by a potential receiving entity during a month, together with that number of gallons of capacity which equals the respective percentage applicable to such entity multiplied by the number of gallons of excess upon which the surcharge is calculated, exceeds the number of gallons of reserved capacity for that entity, then such entity shall receive only the amount of the surcharge which applies to the difference between its reserved allocation and the total amount of gallons of capacity used by that entity during a month. Such portion of the surcharge not paid to the entity shall be prorated among the other receiving entities based on the poiconP.ayns above stated. 4. Violation Caused Surcharges. The procedures for processing surcharges invoked by roason of violations shall be as Follows: (a) The amount of the surcharge shall be calculated based upon the surcharge as set by the Regional Board and based on the strength of the waste being received above the average domestic waste concentrations as may be defined by law. (b) The surcharge shall be added to the Operation and Maintenance costs billed to the local governmental entity i.nvol.ved with the Project upon whinth the r,nrchargo has been invoked. (c) The surcharges shall be invoked effective the monthly meter reading period during which the violation first occurs and shall continue until such violation is remedied. (d) The surcharges shall be placed into the Operations and Maintenance budget of the Regional System. C. Mora to r3unpj The County shall invoke moratoriums upon the local governmental entities involved with the Project when such entities: 1. Discharge into the Regional System for a period of four (4) out of six (6) consecutive calendar months a quantity of wastewater which exceeds such entity's maximum flow input amounts (reserved allocations); or 30 2. Discharge into the Regional system wastewater which violates the regulations of the applicable federal, state and /or local governments and /or agencies and such entities do not promptly act to remedy such violations. A moratorium as provided herein shall mean a suspension of the issuance of all building permits for the entity. The moratorium shall remain in effect until the condition causing the same has been resolved satisfactory to the County. SECTION IX Regional System Distinct From Town System It is understood that the Regional System shall be distinct and separate from the existing system of the Town. As such, except as expressly provided in this Agrecmcnt, the County may, with respect- to the Regional System: A. operate, maintain, manage, regulate and control the Regional System; B. Establish and set all rates, fees, and other charges applicable thereto; C. Adopt such ordinances, rules, regulations and other procedures as it deems appropriate therefor; D. Collect and retain revenues and other monies obtained in the operation of the same; and E. otherwise, exercise with respect thereto any and all rights, authorities or privileges it may be or has been granted by law. SECTION X Existing Collection System of Town A. Ownership The existing collection system of the Town shall be and remain the sole property of the Town. B. Operations and Maintenance The Town shall be solely responsible for the operations and maintenance of its existing collection system. C. Rates. Fees, and other Charges 1. Establishment. The Town shall establish and set all rates, fees, and other charges for sewer connections and services provided from its existing collection system. 2. Billing and Collection. The Town shall be responsible for billing all sewer service .customers served or to be served by its existing collection system. All costs related to billing and collection shall be paid by Town. D. Administrative Expenses The Town shall be responsible for all administrative, Legal, and other costs associated with its existing collection system. E. Indemnification of County The Town shall and hereby does indemnify and hold harmless the County from and against all costs, loss, expenses, (.including attorneys' fees) claims, su.i.ta and judgment:: whatsoever in connection with any and all liabiHLy arising out of any error or omission made or caused by the Town and /or its officers, agents and employees in connection with its existing sewer collection system or any other sewer collection system operated by the Town. 31 SECTION XI Certain Expansions Related to the Town A. Expansions to Collection System of Town - County Nonparticipant 1. Applicability. The provisions of this subsection shall apply in the event sewerage collection pipelines, force mains, and /or related facilities are constructed such that effluent therefrom shall flow through the Town Effluent Meter, and the same have been either: (a) constructed or caused to be constructed solely by the Town, OR (b) constructed by some person, firm, or entity other than the County, and accepted by the Town as part of its collection system. 2. Ownership. Sewerage collection pipelines, force mains and /or related facilities as identified in subsection A(1) above shall be and remain the sole property of the Town. 3. Operation and Maintenance. The Town shall be solely responsible for the operation and maintenance of any sewerage collection pipelines, force mains, and /or related facilities as identified in subsection A(1) above. 4. Rates, Fees, and Other Charges. The Town shall establish and set all rates, fees, and other charges for sewer connections and services provided from any sewerage collection pipelines, force mains, and /or related facilities as identified in subsection A(1) above. 5. Billing and Collect.i.on. The Town shall be responsible for billing all sewer service customers served by sewerage collection pipeline, force mains, and /or related foci]. ,i,ti.es an identified in subsection A(1) above. All costs related to billing and collection shall be paid by Town. 6. Administrative Expenses. The Town shall be responsible for all administrative, legal, and other costs associated with sewerage collection pipeline, force mains, and /or related facilities as identified in subsection A(1) above. B. Expansions for Benefit of Town - County Nonparticipant 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains, and /or related facilities to be constructed such that effluent therefrom shall not flow through the Town Effluent Meter, but shall flow otherwise into the Regional Interception Pipeline, and the same are to be either: (a) constructed or caused constructed solely by the Town, OR (b) constructed by some person, firm, or entity other than the County and the areas serviced therefrom are to be incorporated into the municipal boundaries of the Town. 2. Connection Subject to County Approval. Any sewerage collection pipeline, force mains, and /or related facilities identified in subsection B(1) above shall not be connected to the Regional Interception Pipeline or any other pipeline or main owned by the County until such connection is approved in writing by the County. 32 3. Ownership. Any sewerage collection pipelines, force - mains, and /or related facilities identified in subsection B(1) above shall be and remain the sole property of the Town. 4. Provisions Subject to Mutual Agreement. With respect to any sewerage collection pipelines, force mains, and /or related facilities identified in subsection B(1) above, it is agreed that County and Town shall collaborate, and prior to construction of the same, agree to provisions with respect thereto regarding the fo l..low.i.nq: (a) Metering of effluent transmitted therefrom, (b) Operation and maintenance thereof, (c) Rates, fees, and other charges applicable thereto, (d) Responsibility for billings and collections related thereto; and (e) Responsibility f.or administration expenses regarding the same. C. Count Expansions to CollecLi on System of Town 1. Applicability. The provisions of this Subsection shall apply to sewerage collection pipelines, force mains and /or related facilities to be constructed outside the corporate limits of the Town and such that effluent therefrom shall flow through the Town Effluent. Meter and the same are to be either: (a) constructed or caused to be constructed solely by the County, or (b) constructed by some person, firm or entity other than the Town and are to be accepted by the County as part of its collection system. 2. Connection Subject to Town Approval. Any sewerage collection pipelines, force mains and /or related facilities identified in subsection C(1) above shall not be connected to the existing collection system of the 'Down or any system identified in subsection A(1) hereof until such connection is approved in writing by the Town. 3. Ownership. Any sewerage collection pipeline, force mains and /or related facilities identified in subsection C(1) above shall be and remain the sole property of the County. 4. Provisions Subject to Mutual Agreement. With respect- to any sewerage collection pipelines, force mains and /or related facilities identified in subsection C(1) above, it is agreed that County and Town shall collaborate, and prior to construction of the same, .agree as to provisions with respect thereto regarding the following: (a) Metering of effluent transmitted therefrom, (b) Operation and maintenance thereof, (c) Rates, fees and other charges applicable thereto, (d) Responsibility for billings and collections related thereto; and (e) Responsibility for administrative expenses regarding the same. D. Coun_L•.v Expansions in Vicil?•i ty__of Tow 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or 33 related facilities constructed such that effluent therefrom shall not flow through the Town Effluent Meter, but shall flow otherwise into the Regional Interceptor Pipeline, and the same has been either: (a) constructed or caused to be constructed solely by the County, or - (b) constructed by some person, firm or entity other than the Town, and accepted by the County as part of its collection system. 2. Ownership. Sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(l) above shall be and remain the sole property of the County. 3. Operation and Maintenance. The County shall be :solely responsible for the operation and maintenance of any sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above. 4. Rates, Fees and Other Charges. The County shall establish and set all rates, fees and other charges for sewer connections and services provided from any sewerage collection pipeline, force mains and /or related facilities as identified in subsection D(1) above. 5. Billing and Collections. The County shall be responsible for billing all sewer service customers served by sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(l) above. All costs related to billing and collection shall be paid by County. 6. Administrative Expellee:;, The County shall be responsible for all administrative, legal and other costs associated with any sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(l) above. E. Exoaneions Res i om Jo'nt Cooperation of Town and County /Other - xoaneione Not Identified 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or related facilities constructed or caused to be constructed as a result of a joint- effort of the County and Town or planned or caused to be constructed pursuant to some, ol:her plan not .identified herein. 2. Provisions Subject to Mutual Agreement. With respect to any sewerage collection pipelines, force mains and /or related facilities as identified in subsection E(1) above, it is agreed that County and Town shall collaborate and, prior to construction of the same, agree as to provisions with respect thereto rngardi.ng the following: ` (a) Ownership thereof, (b) Metering of effluent transmitted therefrom, (c) Operation and maintenance thereof, (d) Responsibility for establishment of rates, fees and other charges applicable thereto, (e) Responsibility for billings and collections related thereto, and (f) Responsibility for administrative expenses regarding the same. 34 SECTION XII Expansion of Regional System A. Section Applicability The provisions of this Section shall apply in the event one or more of the following circumstances should arise: 1. The Town determines that it desires additional wastewater treatment plant capacity such that an expansion must be mvvh= to I. hr. Rogiona1. Treatment Feel it.y to ubtaiu such ndel.i.ti.onal capacity. 2. The County determines that it desires additional wastewater trent:ment plant capacity much that an expansion must: be made to the Regional Treatment Facility to obtain such additional capacity. 3. A determination is made that wastewater flow from the Town .into the Regional Interceptor. Pipeline has increased or is anticipated to increase to such extent that the Regional Interceptor Pipeline must be upgraded, expanded, and /or enlarged to ninet the flow requirements of the Tnwn. 4. The County determines that it desires to upgrade, expand, and /or enlarge one of the main interceptor pipelines constructed as part of the Project. 5. The County determines that it desires to provide wastewater treatment services to other local governmental entities not involved with the Project. B. Neoati.ve _Lmpacts With respect to the implemc:htati.un of any expansion to the Regional System as described in this Section, a negative .impact shall be deemed to result from the same, if It is reasonably expected to cause: 1. Additional debt service costs to be incurred by the local governmental entity or entities not participating therein;. or 2. A reduction or diminution in services to any or all the local governmental entities involved in the Project; or 3. Additional Operations and Maintenance costs to be incurred by the local governmental entity or entities not participating therein. C. Procedure. In the event the County and /or the Town desire to implement an expansion as described in this Section, then the following procedures shall be utilized: 1. The County and /or the Town shall cause appropriate investigations, studies, and /or evaluations to be conducted to doCorm.i.na whether or not negative Imtuicts. will. result from the desired expansion. 2. In the event a determination is made that negative impacts, will r:esu.l.l: from the expanS.ioli, t:ha County and /or: the Town will formulate actions to be put into effect with the implementation of the expansion which will remedy the effect of such negative impacts. 3. The County and /or the Town shall present- any proposal relative to the implementation of an expansion to the Regional Board. Such proposal shall include such documentation as will. reasonably support its conclusions and opinions relative to negative impacts. 4. The County and /or the 91own shall cooperage with the 35 Regional Board as said Board carries out its functions as set forth in Section xIv of this Agreement. 5. Upon approval of the proposed expansion by the Regional Board, the party or parties involved shall be authorized to .implement the proposed expansion. D. Additional Procedure Author_i-zed for Benefit of Count In the event that the Regional Board does not: approve an expansion desired by the County, and /or fails to carry out its duties with respect to making its decision regarding such expansion in a timely manner, then it is understood that the County may proceed to implement an expansion if the expansion is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved !.it the expansion; or, those negative .impacts reasonably expected to result from the expansion have been or will be, upon implementation of the expansion, remedied by the county. Such expansion as is herein authorized may be jointly implemented by the County and another of the local governmental entities involved in the Project. It is agreed that any wastewater treatment plant capacity and /or any interceptor line capacity resulting pursuant to such expansion shall be allocated to the County and, if applicable, the other local governmental entity involved with said expansion. It. (lrlrl i l: ,o u.•}�Procedure Att t,hgr i ::ed_ I:orq,`AW' jJ_ul._.,'Town In the event that the Regional. Board does not approve an expansion desired by the Town, and /or. fails to carry out its duties wi.t:h ror;pect to making its decision regarding hitch expansion in a timely manner, then it is understood that the Town may proceed to implement an expansion if the expansion is reasonably expected to cause no negative impacts on the local governmental entity or entities, not involved in the expansion; or, those negative .impacts reasonably expected to result from the expansion have been or will be, upon implementation of the expansion, remedied by the Town. Such expansion as is herein authorized may be jointly .implemented by the Town and another of the local governmental entities involved in the Project.. PROVIDED, HOWEVER, that should the Town determine to proceed as provided hereunder, that it shall do so under the following terns and conditions: 1. The Town shall employ consulting engineers, acreptahle, to and approved by County, to design the desired expansion. Upon completion, the plans and specifications for the nxpansion shal. 1. be presented to the County for review and approval. The County shall approve such plans and specifications unless good cause exists to disapprove the same. The County agrees to not unreasonably withhold approval of such plans and specifications. 2. The County, as operator of the Regional System, shall collaborate and cooperate with the Town in order to obtain the necessary permits from the applicable federal, state and /or local. governments and /or agencies so as to proceed with construction of the expansion. 3. The County, as operator of the Regional System, and the Town shall make provision for the joint submission of the expansion project for bids. The contract or contracts for construction shall thereafter be awarded according to law. The decision as to which bid or bids to accept or any decision to rebid the project shall be made by the Town. 36 - 4. During construction it is agreed that the County shall be authorized to inspect and observe the construction . process su an to insure t:ho .acceptable complel i.on of the expan! -ion. 5. All costs associated with the expansion shall be paid by l.he 'Town. Administrative costs incurred by the County shall. be paid by the Town to the ConnLy upon billing by the County. Costs of design, construction observation and other engineering Services shall. be paid directly by the Town to the engineer. In the event it is necessary for the County to enter into contracts for the ronstruct.ion of the expansi.un (f.or the bonef.iit ol: the Town) costs incurred pursuant to such contracts shall be paid by the Town over the course of the construction period within ten (10) days after submission of periodic pay enti:mates [as issued by the contractor.(s)and /or engineer]. 6. It is agreed that any wastewater treatment plant capacity and /or any interceptor line capacity resulting pursuant to the above described procedure shall be allocated to and owned by the Town. 7. As set forth in this proviso, the term Town shall .i.nr.lude, if applicable, the other l.ocal governmental. entity involved with said expansion. SECTION XIII Sale of Capacity Allocations in Regional System A. Section Applicability The provisions of this Section shall apply in the event one or more of the following circumstances should arise. 1. The Town determines that it desires to sell all or a portion of its capacity allocation in the Regional System to one or more of the other local governmental entities involved with the Project. 2. The Town determines that it desires to purchase all or porti.on of the capacity allocation in the Regional system held by one or more of the other local governmental entities involved with the Project. 3. The County determines that it desires to sell all or a portion of its capacity allocation in the Regional System to one or more of the other local governmental. entities involved with I.h': Projo.u:t. 4. The County determines that it desires to purchase all or a portion of the capacity allocation in the Regional System held by one or more of the other local . goveT rime ntal ontit.ies involved . with the Project B. Neeative Impact With respect to the purchase and /or sale of capacity al.lncalilnns in the Regional System a:: described in th.i.n section, a negative impact shall be deemed to result from a purchase and /or sale if such purchase and /or sale is reasonably expected to cause: 1. Additional debt service costs to be incurred by the local governmental entity or entities not parties to the purchase and /or sale; or 2. A reduction or diminution in services to any or all the local governmental entities involved in the Project; or 3. Additional Operations and Maintenance costs to be incurred by the local governmental nnFity or entities not parties to the purchase and /or sale. 37 C. Procedure. In the event the County and /or the Town desire to purchase and /or sell capacity allocations in the Regional System as described in this Section, then the foll.owing procedures shall be utilized: 1. The County and /or the Town shall cause appropriate investigations, studies and /or evaluations to be conducted to determine whether or not negative impacts will result from the purchase and /or sale. 2. In the event a determination is made that: negative impacts will result from the purchase and /or sale, the County and /or the Town will formulate actions Lo be put- into offect together with the purchase and /or sale which will remedy the effect of such negative impacts. 3. The County and /or the Town shall present any proposal relative to the purchase and /or sale of capacity allocations in the Regional System to the Regional Board. Such pr opot:n I nha I I i nr.ludo such doc;uunn; nl:.i nn a:: wi Ll re;e:ouabl.y support its conclusions and opinions relative to negative .impacts. 4. The County and /or the 'town shall cooperate with the Recional. Board as said Board carries out .its functions an set forth in Section XIV of this Agreement. 5. Upon approval of the proposed purchase and /or sale by the Regional Board, the parties involved shall be authorized to completo said purchase and /or. sale. D. Additional Procedure Authorize d f r RenRfiY of County In the event that the Regional Board does not approve a proposal. made by the County to purchase and /or sell capacity allocations in the Regional System, and /or fails to carry out its duties with respect to making its decision regarding such purchase and /or sale in a timely manner, then it is understood that the County may proceed to consummate the proposed purchase and /or sale if the purchase and /or sale is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the purchase and /or sale or, those. negat.i.ve impacts reasonably expected to result from the purchase and /or sale have been or will be, upon consummation of the purchase and /or sale, remedied by the County. E. Additional Procedure Authorized for Benefit of Town In the event that the Regional. Board does not approve a proposal made by the Town to purchase and /or sell capacity allocations in the Regional System, and /or fails to carry out its duties with respect to making its decision regarding such purchase and /or sale in a timely manner, then it is understood that the Town may proceed to consummate the proposed purchase and /or sale if the purchase and /or sale is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved .i.0 the purchase and /or sale or, those negative .impacts reasonably expected to result from the purchase and /or sale have been or will be, upon consummation of the purchase and /or sale, remedied by the Town. PROVIDED HOWEVER, that should the Town consummate a sale of all or a portion of its capacity allocation in the Regional 38 syst*nm to another local governmenta.1 entity involved in the Project, the Town shall be and remain liable to the County herounder for the Town's portion of the costr, of the Regional System. AND FURTHER PROVIDED, that should a purchase and /or sale as provided hereunder cause any modification to be made to the Regional System, then, such modification shall be completed upon the I:ol..lowi.ng terms and conditions: 1. The Town shall ellipIoy consulting engineers acceptable to and approved by County, to design the desired modification. Upon completion, the plans and specifications for the modification shall be presented to the County for review and approval. The County shall approve such plans and specifications unless good cause exists to disapprove the same. The County agrees to not unreasonably withhold approval of such plans and specifications. 2. The County, as operal.or of the Regional System, shall collaborate and cooperate with the Town in order to obtain the necessary permits from the applicable federal, state and /or local governments and /or agencies so as to proceed with construction of the modification. 3. The County, as operator of the Regional System, and the Town shall make provision for the joint submission of the modification project for bids. The contract or contracts for construction shall thereafter be awarded according to law. The decision as to which bid or bids to accept or any decision to rebid the project shall be made by the Town. 4. During construction it is agreed that the County shall be authorized to inspect and observe the construction process so as to insure the acceptable completion of the modification. 5. All costs associated with the mod.i ficatiun r:hal.l be paid by the Town. Administrative costs incurred by the County shall be paid by the Town to the County upon billing by the County. Costs of design, construction observation and other engineering services shall be paid directly by the Town to the engineer. In the event it is necessary for the County to enter into contracts for the construction of the modifi.cal.ierrr (for the benefit of the Town) costs incurred pursuant to such contracts shall be paid by I:ho Town over the course of the constrnc•Lion period within ten (10) mays nf:l.er submission of periodic pay ostimater. (as issuod by the contract-or(s) and /or engineer]. SECTION XIV Cape Fear Regional Wastewater Board A. Creation The County and the Town agree to cooperate and participate in the establishment ol: the Cape rear Regional Wastewater Board (hereinafter sometimes referred to as the "Regional Board ") in accordance with the provisions of this Section. It is acknowledged that the County has entered into Agreements with the other local governmental entities involved with the Project and that each such Agreement contains a Section regarding the Regional Board which is in substance identical to 1.10 f; Srcl.lon. It .i.s understood that. I.lu+ Town and the County hereby agree that they shall abide by those provisions of this Agreement concerning the Regional Board as the same apply to the other local governmental entities in-°>olved with the Project. 39 B. Purpose of Regional Board It is the desire of the .local governmental en L.ities involved with the Project to create the Regional Board for the following purposes: 1. To create a forum where the concerns and desires of such entities may be freely and openly discussed so as to insure l:hat: all entities will be made aware of the status of all aspects of the Regional System and its operation. 2. To promote cooperation between such en Li.L.i.ea, 3. To insure that all such entities will be provided an opportunity to make suggestions and comments relative to the status of the Regional System and its operation. 4. To review proposals to modify the existing status of the Regional System and its operation. 5. To review proposals to expand the Regional System and to promote agreement and cooperation between such entities with respect thereto. 6. To carry out and implement its duties and authorities set forth in this Agreement. C. Membership' Two members of the Regional Board shall be appointed by each local governmental entity involved with the Project, one of which shall be a member of the governing body of the entity appointing such members. The members of the Regional Board shall serve at the pleasure of the Board appointing them. D. Initial Appointment The Regional Board shall be initially appointed prior to January 17, 1990. E. Meetings Regular meetings of the Regional Board shall be held on the fourth Tuesday of the first month in each calendar quarter of the year at 7:00 o'clock p.m., and at such other times as requested by any entity represented on said Board. The Board shall meet in the Conference Room of the Northeast Metropolitan Water Plant Facility located on West Duncan Street in Lillington, North Carolina. F. Voting Each entity represented on the Regional Board shall be entitled to one vote on each issue coming before the Board and that vote may be cast by either member of the Regional Board representing such entity. Both members representing an entity need not be present for that entity's full vote to be cast. G. Officers At the first meeting of the Regional Board each calendar year, the Regional Board shall elect from its membership a Chairman and a Vice - Chairman. The fact that a Board member shall be elected to either office shall have no effect upon the voting rights of that member or of the entity such member represents. H. Operating Procedures The proceedings of the Regional Board shall be conducted in ;iacordance with the most recent - +dit.ion of liobert_0__Rules of order, except where the provisions of this Agreement provide otherwise. E1 t Du_t..Los P Regional Board.... Rgg;irdin Reaional System Capacity Allocations and Regional System Expansions 1. Statement of Intent. Tt is the intent of the local governmental entities involved with the Project to provide, through the Regional Board, a forum for discussion, review and approval of any proposal to purchase and /or sell capacity allocations in the Rey.i.onal System or to expand the Regional. System. Iu connection therewith , the Board shall not unreasonably withhold approval of such proposal, but rather shall be required to approve the same , unless good cause shall be shown not to do so. Additionally, the Board shall use its best efforts to promote cooperation and agreement between the several entities involved with the Project with respect to such proposals. 2. Procedure. At such Lime as one or more of Cho local governmental entities involved with the Project present a proposal to the Board to implement an expansion as provided in Section XII of this Agreement and /or a proposal to purchase and /or sell Regional System capacity allocations as provided in Section XIII of this Agreement the Regional Board shall: (a) Discuss and evaluate the proposal presented and explore the possibility of formulating an agreement between all the local governmental entities involved with the Project to achieve a mutually beneficial result for all such entities. (b) Discuss and evaluate the conclusions and opinions of the proposing entity or entities with regard to negative imparts of the proposal and, .i..f: applicable, the plans of such proposing entity or entities to remedy negative impacts. (c) In the event of disagreement, offer comments and suggestions with regard to terms and conditions to De implemented as part of the proposal which will remedy negative impacts. wa:aewaLer. Syr;l.em shall be made ill w, it.i.nq to each member of the Board at the regular meetings. Such reports shall include statements of revenues and expenditures, the operations status, flow informati.on and other pertinent. data. SECTION XV General Provisions A. Successors to the County or .t.he...'.fown In the event of any occurrence rendering the County and /or the Town incapable of performing under this Agreement, any successor of the County and /or the 'Town, whether the renu.lt of legal process, assignment, or otherwise, shall succeed to the rights of the County and /or Town hereunder.. The covenants and agreements contained in this Agreement- are binding on the parties hereto and their successors, assigns and legal representatives. B. Reoulatory Agencies This Agreement is subject to such rules, regulations, statutes and /or laws as may be appl.icable to such or similar agreements in this State and the parties agree to collaborate when necessary to obtain such permits, certifications, or the like, as may be required to comply therewith. 41 C. Modification The provisions of this Agreement may be modified or altered by mutual agreement, EXCEPT with regard to Section XIV when any modification or alteration thereto shall be agreed upon by all governmental entities represented on said Regional Board. PROVIDED, HOWEVER, that when applicable, prior to such modification or alteration, approvals therefor will be obtained when necessary from the appropriate Federal and /or. State agencies. All modifications or alterations shall be in writing, and presented to all other entities prior to any entities' modifying their. original Agreements. D. Modifications Resulting from a Chance in Proiect Participants This Agreement has been entered into upon the assumption that in addition to the County, the Town and the Buies Creek -Coats Water and Sewer District of Harnett County, that the Town of Lillington will participate in the Project. In the event the Town of Lillington does not participate, it is agreed that provisions herein referencing its participation and provisions herein requiring modification as a result of its nonpartic.ipat..i.on shall be amended, modified or otherwise corrected. E. Authority to Determine Certain Dptails Whenever, in the course of performing the various terms of this Agreement, it becomes necessary for the parties to make determinations with respect to certain details not specifically 'I provided for herein, such as inspections, system testing or the like, appropriate representatives of the parties may collaborate and mutually agree upon such matters, without need for the amendment or modification hereof. F. Assignments Unless specifically provided in this Agreement, it is agreed that neither the County nor the Town may assign, transfer and /or convey their respective rights and /or obligations hereunder without the express written consent of the other. G. Local Government Commission Where applicable, with respect to this Agreement and the construction of the Project, the 'Town and the County agree to obtain the necessary approvals from the Local Government Commission as are required thereby. H. Ordinances The Town covenants that prior to the commencement of the transmission of wastewater into the Regional Interceptor Pipeline, it will adopt an Ordinance regulating the use of its sewerage collection systems. Said Ordinance shall, among other things, limit and /or prohibit (where appropriate) the discharge of wastewater into the said sewerage collection systems where such wastewater would, singly or by interaction with other wastewater, cause harm or damage to, or interfere with the proper operation of the Regional System, and /or treatment process or cause adverse effects upon the receiving waters from the Regional Treatment Facility. 42 I. Notices Any notice required to be given hereunder by the County to the Town shall be made by the County in writing and mailed by first class mail to the Town of Angier at the following address: Post Office Box 278.. Angier, North Carolina 27501 Any notice required to be given hereunder by the Town to the County shall be made by the Town in writing and mailed by First Class mail to the County Manager, Harnett County, at the following address: Post Office Box 759 Lillington, N. C. 27546 J. Authority The County and the Town represent and warrant, each to the other, the existence of all capacity, authority, resolutions and actions necessary to execute this Agreement. K. Duplicate Agreements This Agreement is executed in duplicate originals, one of which is retained by each party hereto. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the day and year written. Executed by Town of Angier this 18thday of December, 1989. Town of Angier BYil� 7. Jack Marley, T yor AM' JO&n J. Matthews, Clerk Executed by the County of Harnett, this 18th day of December, 1989. At st: Vanessa W. Youngo Clenk to the Board COUN``��T''Y QOF H((��ARNfE --,TT '�.,� By / /�—— L16 td . Stewart, Chairman Harnett County Board of Commissioners HK DOCUMENT NO. 2. RESOLUTION AUTHORIZING EZECUTION OF AGREEMENT WITH THE TOWN OF LILLINGTON REGARDING THE CAPE FEAR REGIONAL WASTEWATER SYSTEM WHEREAS, the Harnett County Board of Commissioners, (hereinafter sometimes referred to as the "Board ") has heretofore caused a comprehensive wastewater study to be conducted for the purpose of examining and analyzing the wastewater facilities needs of Harnett County; and WHEREAS, pursuant to the recommendations of said study, the County of Harnett formulated a plan to construct a wastewater facility system designated as the Cape Fear Regional Wastewater System; and WHEREAS, the County of Harnett has requested the Town of Lillington to participate in the construction and use of said System and the Town of Lillington has agreed so to do; and WHEREAS, attached to this Resolution as Exhibit "A" is a copy of an Agreement between the County of Harnett and the Town of Lillington setting forth the various details of the agreements of said parties with respect to the Cape Fear Regional Wastewater System; and WHEREAS, upon review and consideration of said Agreement, it is the finding of the Board that the construction of said regional wastewater system will be of great benefit to the current and future health and well being of the citizens of Harnett County and the Town of Lillington; and WHEREAS, it is the desire of the Board that the County of Harnett enter into said Agreement so to implement the Cape Fear Regional Wastewater System. NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. The County of Harnett shall and is hereby authorized to enter into the Agreement between said County and the Town of Lillington, a copy of which is attached hereto as Exhibit "A ". 2. The appropriate officers of the County of Harnett are hereby directed to execute the originals of said Agreement. Duly adopted this 1BLh day of December, 1989 upon motion made by Commissioner Shaw , seconded by Commissioner Hudson , and adopted by the following vote: Ayes 4 Noes U Abstained U Absent 1 Harnett County Board of Commissioners By: loyd G. Stewart, Chairman Attest- •✓ V�/I V Ll A... G/ Vanessa W. Young, erk the Board EXHIBIT "A" NORTH CAROLINA HARNETT COUNTY THIS AGREEMENT is made and entered into this 18th day of December, 1989 by and between the COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina (hereinafter sometimes referred to as the "County ") and the TOWN OF LILLINGTON, a municipal corporation organized and existing under the laws of the State of North Carolina (hereinafter sometimes referred to as the "Town "); N I T N E S S E T H: THAT WHEREAS, the County has caused a Comprehensive Wastewater Study to be conducted for the purpose of examining and analyzing the wastewater facilities needs of Harnett County; and I WHEREAS, one of the results of that Study was the identification of a need for a regional sewer collection and treatment system to serve several local governmental entities existing in the central portion of Harnett County; and WHEREAS, in order to meet the demands of the existing and future wastewater disposal needs as identified, the construction of a wastewater facility system, designated as the Cape Fear Regional Wastewater System, has been recommended; and WHEREAS, the plans for the Cape Fear Regional Wastewater System include the replacement of the existing waste treatment facilities serving the Town of Lillington, the Town of Angier and the Buies Creek - Coats Water and Sewer District of Harnett County, the construction of a new regional wastewater treatment facility and the construction of main interceptor pipelines to connect the above named local governmental entities to the new treatment facility; and WHEREAS, in anticipation of the need for construction of wastewater facilities in Harnett County, the Board of Commissioners of Harnett County requested Federal and State assistance in funding the construction of the Cape Fear Regional Wastewater System; and WHEREAS, pursuant to the North Carolina Clean Water Revolving Loan and Grant Act of 1987 and the provisions of the Federal Water Quality Act of 1987, the State of North Carolina, through its Division of Environmental Management, Department of Environment, Health and Natural Resources, advised the County that monies for a loan to fund the costs of the Cape Fear Regional Wastewater System have been reserved for Harnett County; and WHEREAS, the County determined that it desired to proceed with the implementation, construction and eventual operation of the Cape Fear Regional Wastewater System,, and in connection therewith requested the Town of Lillington to enter into an agreement with the County regarding the participation of the Town in said System; and WHEREAS, the Board of Commissioners of the Town of Lillington has determined that the Cape Fear Regional Wastewater System will be of great benefit to the health and well being of the citizens of the Town of Lillington, and WHEREAS, the Town has therefore determined that it desires to participate in the Cape Fear Regional Wastewater System; and WHEREAS, pursuant to the provisions of Chapter 160A, Article 20, Part 1 of the North Carolina General Statutes entitled "Interlocal Cooperation, Joint Exercise of Powers," the County and the Town desire to enter into this Agreement with respect to the Cape Fear Regional Wastewater System setting forth the terms and conditions of their mutual agreements regarding the same. NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements herein contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the County and the Town agree as follows: SECTION I Definitions The following definitions, designations and /or explanation of terms shall be used for the purposes of this Agreement: A. "Project" shall refer to the Cape Fear Regional Wastewater System construction project. B. "Regional Treatment Facility" shall refer to the wastewater treatment and disposal facility to be constructed as part of the Project, and thereafter owned, operated, managed and maintained by the County, except as hereinafter set forth. C. "Regional Interceptor Pipeline" shall refer to the wastewater interceptor pipeline to be constructed and installed as part of the Project which shall connect the existing system of the Town to the wastewater interceptor pipeline (also to be constructed and installed as part of the Project) which shall run parallel to the Cape Fear River to the Regional Treatment Facility. D. "Regional System" shall refer to the entire wastewater collection, treatment and disposal system constructed and installed pursuant to the Project, and shall include all lands required for the installation of the same, together with continuous and adequate easements and rights of way over other lands necessary to erect, construct, install and lay and thereafter use, operate, inspect, repair, replace, remove, change the size of such facilities as named, and in addition shall include the Regional Treatment Facility, the Regional Interceptor Pipeline and the Town Effluent Meter. E. "Town Effluent Meter" shall refer to that meter facility and related appurtenances constructed or otherwise provided for as part of the Project to which wastewater from the Town shall be transmitted by the Town and which shall measure the quantity of wastewater being delivered by the Town into the Regional Interceptor Pipeline. F. Any terminology referring to the existing collection system of Town shall mean that network of sewer collection pipelines, mains and /or related facilities composing the Town's sewer collection system as shall exist on the date the County commences accepting wastewater from the Town into the Regional System. G. Any terminology referring to the existing treatment facilities of Town shall mean those facilities, facility sites, lagoons, lagoon sites, basins, basin sites, land application systems, land application system sites, and all appurtenances related thereto comprising the Town's sewer treatment and disposal facilities as shall exist on the date the County commences accepting wastewater from the Town into the Regional System. H. "Funding Agency" shall refer to the Division of Environmental Management, Department of Environment, Health and Natural Resources of the State of North Carolina, or any successor agency thereto. I. "County Department of Public Utilities" shall refer to the Harnett County governmental department existing as of the date of this Agreement which administers, operates, and otherwise manages the public water and sewer systems owned and /or operated by the County, and shall include any other successor department or subdivision of the County which shall perform such functions. J. Any terminology referring to the local governmental entities involved with the Project shall refer to the Town, the County, the Town of Angier and the Buies Creek -Coats Water and Sewer District of Harnett County. A reference to the other local governmental entities involved with the Project shall mean the remainder of the above named local governmental entities not specifically the subject of the particular provision within which the reference is made. 45 We R. "Regional. Board" shall refer to the Cape Fear. Regional Wastewater Board as established in Section XIV.of this Agreement. SECTION II Term This Agreement shall be a continuing contract relative to the furnishing of essential wastewater treatment and disposal services for the citizens of the Town, and shall exist and continue until the County and the Town shall mutually modify or terminate the same, BUT IN NO EVENT shall the same terminate until the loan (including principal and interest) described in Section III has been paid in full. SECTION III Funding Agency and Funds for Construction A. Funding Source The funds for construction of the Project are anticipated to be supplied in the form of a loan made to the County pursuant to the North Carolina. Clean Water Revolving Loan and Grant Act of 1987 and the provisions of the Federal Water Quality Act of 1987 as administered by the Division of Environmental Management, Department of Environment, Health and Natural Resources of the State of North Carolina. The terms of this Agreement are conditioned upon the receipt of said loan and approvals required therefor, and in the event said loan is not obtained by the County, or the Regional System is otherwise not constructed, then the County shall have no obligations hereunder to the Town, and the Town shall have no obligations hereunder to the County. B. Agreement Subject to Requirements of Funding Agency The County and Town agree to comply with all the conditions and requirements imposed by the Funding Agency, which shall include, but not be limited to, the Revolving Loan conditions, the establishment of pretreatment requirements, and the adoption of appropriate sewer use ordinances and user charge systems. C. Town to Act in Timely Manner When, in the course of providing the various ordinances, information and /or other documents to the Funding Agency, the County must obtain such items from the Town prior to submission to the Funding Agency, the Town agrees to prepare, adopt and /or otherwise provide the same to the County in a timely manner. D. Loan Payment Sources All funds paid by the County and the Town as principal and interest on the aforementioned loan shall be derived only from those sources specified by the Funding Agency. SECTION IV Construction and Ownership of Regional System A. County Lead Agency The County shall be responsible for administering and managing the construction and installation of the Regional System and in connection therewith shall: 1. Cause the appropriate pre - construction studies to be completed as are required by the Funding Agency and any other State or Federal agencies. 47 2. Cause such funding and permit applications as may be required to be completed and filed with the appropriate Federal and State agencies. 3. Cause plans and specifications for the Regional System to be completed in accordance with acceptable engineering practices and procedures, and in compliance with applicable rules, regulations and requirements of the Funding Agency and such other State and Federal agencies as may be applicable. 4. Obtain and acquire in its name continuous and adequate easements and rights of way on private lands necessary to erect, construct, install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect the Regional System. 5. Obtain and acquire in its name permits, franchises, and authorizations or other instruments by whatsoever name designated, from public utilities and public bodies, commissions or agencies such as are necessary to erect, construct, install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect the Regional System upon, along or across streets, roads, highways and public utilities. 6. Obtain and acquire in its name such parcels of real property as are necessary for the construction of the Regional Treatment Facility, pump stations, and any other building or structure required for the completion of the Regional System. 7. Cause the contract or contracts for construction and installation of the Regional System to be advertised in accordance with applicable law, and to thereafter award and enter into such contract or contracts for said construction and installation as the County deems in the best interest of the Regional System. The determination as to which bidder or bidders shall be awarded contracts shall be made by the County. 8. Cause the installation and construction of the Regional System to be supervised by qualified and competent engineers. 9. Provide for the administration of the construction and installation of the Regional System and to provide for inspection of the same. 10. Provide for the administration of the funds obtained for the implementation, construction and installation of the Regional System. 11. Otherwise, manage the implementation, construction and installation of the Regional System. B. Ownership of Rec;onal System The Regional System shall be and remain the property of the County, and the Town shall have only that right, title or interest as expressly provided in this Agreement. It is understood that except as to the rights of the Town expressly provided in this Agreement, as owners of the Regional System, the County may operate, maintain, manage, regulate and control the same, subject to the terms of this Agreement, and otherwise exercise with respect thereto any rights, authorities or privileges it may be granted by statute. 48 C. Joint Cooperation - During the course of the implementation, design and construction of the Regional System, the Town and the County agree to collaborate and cooperate with respect to the gathering of the documentation, data and /or other information necessary to properly design and construct the Regional System. Additionally, when requested by the County and /or the contractor(s) the Town agrees to cooperate with the said County and /or the contractor(s) with respect to the testing of the Regional System, and preparation for connection of the same to the existing collection system of the Town. D. Conveyance of Easements The Town agrees to convey to the County, without charge, easements and rights of way over, upon and across properties owned by the Town when such easements and rights of way are necessary to install and construct the Regional Interceptor Pipeline, and /or otherwise necessary to connect the Regional Interceptor Pipeline to the Town Effluent Meter. SECTION V Capacity Allocations in Regional System A. Manner of Expression The allocations of capacity in the Regional System shall be expressed in terms of treatment capacity in the Regional Treatment Facility. B. Town Allocation. The Town shall have allocated and reserved for treatment of its wastewater thirty (30 %) percent of the treatment capacity of the Regional Treatment Facility. It is understood that the capacity of the Regional Treatment Facility is to be two million (2,000,000) gallons per day, and that therefore, the allocation and reservation herein made to the Town equals six hundred thousand (600,000) gallons per day. C. Remaining Allocations. The remaining seventy (70 %) percent of the treatment capacity of the Regional Treatment Facility shall be allocated to the other local governmental entities involved with the Project or retained by the County for its use. SECTION VI Payment for Capacity Allocations in Regional System A. Loan Determination The amount of the loan awarded for the construction and installation of the Regional System shall be determined pursuant to the directives of the Funding Agency. As soon as practicable after final determination of the loan amount and related debt instrument details, the County shall provide such information to the Town. B. Loan Payment Portion Payable by Town The Town shall pay that portion of each and every payment due on the loan obtained through the Funding Agency as hereinafter provided: 1. The portion of each payment made by the Town shall equal twenty -five percent (25 %) of the total amount of the principal and /or interest due for such payment. 2. The portion of the payment to be made by Town shall be paid to the County at least fifteen (15) days prior to the due date of the same. 3. It is understood that according to the Funding 49 Agency, principal payments will be made annually on or before May 1 of each year, and that all interest payments will be made semiannually on or before May 1 and November 1 of each year. The portion of the payments to be made by Town as herein provided shall apply to both the principal and interest and the interest only payments due on the loan. C. Remainder of Loan Payments The remaining portion of the loan payment for the Regional System, that is, that portion not paid by Town, shall be obtained by the County from the other governmental entities participating in the Project, and /or supplied by the County. The County shall be responsible for transmitting the loan payments to the Funding Agency or other appropriate agency as directed by the Funding Agency. County shall maKe saia paymenca on a timely basis and any penalty or late charges shall not be paid by Town, provided Town has made its payment by the time required in Section VI (B) (2). It is the understanding of the County and the Town that the current estimated Project cost is $7,500,000. The County ana the Town agree that should the Project exceed one percent (18) of the estimated Project cost, including closing costs and other costs associated therewith, then the Town shall have the option of either retaining its level of capacity allocations in the Regional System herein agreed upon, and thereby incur its share of the additional costs for the same, or reduce its level of capacity allocation in the Regional System herein agreed upon and thereby not incur the additional costs. In the event that during the pre - construction phases of the Project it becomes apparent that the estimated Project Cost, together with closing coats and other costs associated therewith, shall exceed $7,500,000 by more than one percent (1$) of such amount, then the County shall notify all entities involved with the Project so that they may collaborate and cooperate as to cost overruns. The Town shall determine which option it desires, and shall advise the County as to such determination within twenty (20) calendar days after notification to the Town of the apparent cost overrun. Unless otherwise agreed, if the Town shall elect to retain its level of capacity allocation as described above, or if the Project exceeds $7,500,000 by less than one percent (1$) thereof, then the Town shall pay such portion of the applicable excess as equals twenty -five percent (25%) thereof. SECTION VII Wastewater Treatment and Metering A. County to Treat Town Wastewater County agrees to treat at the Regional Treatment Facility during the term of this Agreement or any renewal or extension thereof, quantities of wastewater which flow through the Town Effluent Meter up to and including the maximum amount of Six hundred thousand (600,000) gallons per day, which said maximum amount equals the allocation made and reserved for the Town herein. 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 Environment, Health and Natural Resources. 50 B. Town Effluent Meter County agrees to furnish and install as part of the Project and thereafter operate and maintain at such point as is agreed upon by the engineers for the Regional System and the engineers employed by the Town the necessary metering equipment, including a meter house or pit, and the required devices of standard type for properly measuring the quantity of wastewater transmitted into the Regional Interceptor Pipeline for treatment and to calibrate such metering equipment whenever requested by Town, but not more frequently than once every twelve (12) months. However, the Town may obtain independent verification of the calibration of the metering equipment. In this event, should the test result be deemed to be accurate, (as hereinbelow stated), then the Town shall pay the costs of obtaining such test. If the test result is not deemed to be accurate, (as hereinbelow stated), then the County shall pay the costs of obtaining the test. A meter registering not more than two (28) percent above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the three (3) months previous to such test in accordance with the percentage of inaccuracy found by such tests. If the meter fails to register for any period, the amount of wastewater treated during such period shall be deemed to be that amount of wastewater which equals the average monthly reading for the three (3) months previous to such failure, unless County and Town shall agree upon a different amount. Appropriate officials of Town shall have access to the meter at all reasonable times in order to verify readings. C. Meter Readinos The Town Effluent Meter shall be read by the County on the first day of each month. SECTION VIII Operation and Maintenance of Regional System A. Management of of Reoional System Except as otherwise set forth in this Agreement, the Regional System shall be managed, operated, and maintained by the County through its Department of Public Utilities, as a County operated public enterprise, and in connection therewith the County shall: 1. Formulate and thereafter maintain proper accounting procedures with respect to the Regional System in accordance with the North Carolina Local Government Budget and Fiscal Control Act as set forth in Article 3, Chapter 159 of the North Carolina General Statutes. 2. Operate and maintain the Regional System on an annual budget, which budget shall be formulated and maintained in accordance with the North Carolina Local Government Budget and Fiscal Control Act as set forth in Article 3, Chapter 159 of the North Carolina General Statutes. 3. Contract with a certified public accountant for annual audits of the Department of Public Utilities and the Regional System accounting procedures and records. 4. Obtain, and thereafter maintain, insurance and bonds as required by State law. 51 5. Comply with all Federal, State, and Local laws and regulations relative to the management, operations and maintenance of the Regional System. 6. Invoke moratoriums in accordance with Section VIII (G) hereof to prevent the addition of wastewater customers to the Regional System and /or the increase in wastewater flow into the Regional System so as to protect the allocation in the Regional System reserved for the Town herein. 7. Invoke surcharges in accordance with Section VIII (F) 1" hereof upon the local governmental entities involved with the Project, in the event such entities exceed their maximum flow input amounts (reserved allocations) into the Regional System. 8. Report to the Town on a monthly basis, or upon request, with respect to wastewater flow from all the entities involved with the project and other matters as are appropriate. 9. Otherwise, provide for the orderly and efficient management, operation, and maintenance of the Regional System. B. Operations and Maintenance Expense Provided by Town 1. The Town shall, on a monthly basis, provide that portion of the costs incurred for Operations and Maintenance of the Regional System as is described herein. Said monthly cost shall be based upon a Bulk Municipal Sewer Rate as hereinafter formulated. 2. The portion of the costs incurred for Operations and Maintenance of the Regional System to be provided by Town shall be that amount of money which equals the product of the Bulk Municipal Sewer Rate multiplied by the number of gallons of wastewater transmitted into the Regional Interceptor Pipeline as measured Eli through the Town Effluent Meter. 3. The Bulk Municipal Sewer Rate (hereafter "Bulk Rate ") shall be the Operations and Maintenance expense of the Regional System expressed in cost per one thousand (1000) gallons of wastewater treated. The Bulk Rate shall be determined on an annual cycle, and shall be based upon demonstrable expenditures for the operations and maintenance of the Regional System as indicated on the accounting records for the Regional System, together with anticipated increases or decreases in the same. The Bulk Rate shall be determined as follows: (a) The total amount of Operations and Maintenance costs incurred by the County during a fiscal year shall be calculated. (b) Such total amount of Operations and Maintenance costs shall then be divided by the number of gallons of wastewater treated at the Regional Treatment facility during the corresponding fiscal year. The per gallon cost thereupon derived shall be multiplied by one thousand (1000) to determine actual cost per one thousand (1000) gallons. (c) The actual cost per one thousand (1000) gallons shall thereupon be adjusted to reflect projected and anticipated increases or decreases in the Operations and Maintenance expenses reasonably expected to be incurred by the County in the forthcoming rate period. (d) The actual cost per one thousand (1000) gallons adjusted as provided in (c) above shall be the Bulk Rate for the next fiscal year. 4. Prior to the adoption of a bulk rate, the County shall seek the advice and recommendations of the Regional Board 5 with respect thereto, and shall provide documentation to the regional Board to support its conclusions and opinions regarding the same. 5. On or before April 1 o each year, the County shall advise the Town of an estimate of the bulk rate it intends to adopt and shall adopt such rate on or before May 1 of each year. 6. The Town shall be furnished by the County, not later than the tenth (10th) day of each month, an itemized statement or bill (including the amount of wastewater treated, the rate and the amount due) for the amount of wastewater transmitted into the Regional Ynterception Pipeline through the Town Effluent Meter during the preceding month, as established by the meter readings made on the first day of each month. 7. The Town shall pay to the County the amount billed to them by the County on or before the twentieth (20th) day of the month in which the bill is rendered. C. Procedures Prior to implementation of Annual Cycle 1. The Bulk Municipal Sewer Rate, prior to the implementation of the Annual Cyclical Procedures outlined in Section B above, shall be determined as follows: (a) During the period beginning on the date the County commences accepting wastewater from the Town into the Regional System and continuing through the end of the fiscal year following the fiscal year during which wastewater is first accepted, the Bulk Municipal Sewer Rate shall be based upon estimated operations and Maintenance expenses of the Regional System as determined by the County and the Project engineers. (b) During the first year in which the Annual Cyclical Procedures are implemented, the Bulk Municipal Sewer Rate shall be based upon demonstrable expenditures for the operations and maintenance of the Regional System as indicated on the accounting records for the Regional System made during the first fiscal year of its operation (that period beginning on the date the County commences accepting wastewater from the Town into the Regional System and continuing through the end of the same fiscal year), together with projected and anticipated increases or decreases in the operations and maintenance expenses reasonably expected to be incurred by the County in the forthcoming rate period. 2. The first billing to the Town shall be made not later than the tenth (10th) day of the month following the month during which the County commences accepting wastewater from the Town. 3. All other procedures provided in Section B above shall be utilized in the calculating of the monthly bill to be rendered to and paid by Town. D. System Failure The County will, at all times, operate and maintain the Regional System in an efficient manner and will take such action as may be necessary to furnish sewer services to the Town. Temporary or partial system failures shall be remedied with all possible dispatch. Any reduction in services to the Town shall be reduced or diminished in the same ratio or proportion as the same is reduced or diminished with respect to the other local governmental entities involved in the Project. Emergency failures caused by main pipeline breaks, power failure, flood, fire, earthquake, or other catastrophe shall excuse the County from the obligation to provide sewer services to the Town for such reasonable period of time as may be necessary to restore service. 53 E. Indemnification of Town The County shall and hereby does indemnify and hold harmless the Town from and against all costs, loss, expenses, (including attorney's fees), claims,suits and judgments whatsoever in connection with any and all liability arising out of any error or omission made or caused by the County and /or its officers, agents and employees in connection with any of the Regional System operated by the County. F. Surcharges 1. Invoking Surcharges. The County shall invoke surcharges upon the local governmental entities involved with the Project when such entities: (a) Discharge into the Regional System a quantity of wastewater which exceeds such entities maximum flow input amounts (reserved allocations), hereinafter referred to as "excess use surcharges" or (b) Discharge into the Regional System wastewater which violates the regulations of the applicable federal, state, and /or local governments and /or agencies, hereinafter referred to as "violation caused surcharges. 2. Excess Use Surcharges. The procedures for processing excess use surcharges shall be as follows: (a) Such surcharges shall be imposed and calculated based on each monthly meter reading period. (b) The surcharges shall be invoked effective the monthly meter reading period during which the excess use first occurs and shall continue until such use is ended. (c) The amount of the surcharge shall be calculated based upon the surcharge as set by the Regional Board. (d) Surcharges shall be payable twice a year, on or before May 1 and November 1. Such surcharges shall be distributed as provided in Section 3 below. 3. Distribution of Excess Use Surcharges. Surcharges imposed and collected by reason of excessive discharges shall be distributed among the local governmental entities involved with the Project as follows; subject, however to the conditions set forth in (e) and (f) below: (a) For each month the Town of Lillington exceeds its reserved allocation, the surcharge assessed to it shall be paid 369 to the Town of Angier, 369 to the Buies Creek -Coats Water and Sewer District of Harnett County, and 289 to the County of Harnett. (b) For each month the Town of Angier exceeds its reserved allocation, the surcharge assessed to it shall be paid 409 to the Town of Lillington, 339 to the Buies Creek -Coats Water and Sewer District of Harnett County, and 27% to the County of Harnett. (c) For each month the Buies Creek -Coats Water and Sewer District of Harnett County exceeds its reserved allocation, the surcharge assessed to it shall be paid 339 to the Town of Angier, 409 to the Town of Lillington, and 279 to the County of Harnett. (d) For each month the County of Harnett exceeds its reserved allocation, the surcharge assessed to it shall be paid 319 to the Buies Creek -Coats Water and Sewer District of Harnett County, 319 to the Town of Angier, and 389 to the Town of Lillington. 54 (e) The above distribution percentages have been calculated assuming that the respective reserved allocations for the entities involved with the Project are as follows: i. Lillington- 600,000 gallons per day ii. Angier- 500,000 gallons per day iii. Buies Creek -Coats District- .500,000 gallons per day iv. Harnett County- 400,000 gallons per day In. the event that any one or more of the entities has increased its reserved allocation by expansion, purchase or otherwise, the percentages as set forth in paragraphs a - d above shall be modified and shall be stated as that portion which each entity owns, expressed as a percentage of the reserved allocations of all receiving entities. (f) In the event the total amount of gallons of capacity used by a potential receiving entity during a month, together with that number of gallons of capacity which equals the respective percentage applicable to such entity multiplied by the number of gallons of excess upon which the surcharge is calculated, exceeds the number of gallons of reserved capacity for that entity, then such entity shall receive only the amount of the surcharge which applies to the difference between its reserved allocation and the total amount of gallons of capacity used by that entity during a month. Such portion of the surcharge not paid to the entity shall be prorated among the other receiving entities based on the percentages above stated. 4. Violation Caused Surcharges. The procedures for processing surcharges invoked by reason of violations shall be as follows: (a) The amount of the surcharge shall be calculated based upon the surcharge as set by the Regional Board and based on the strength of the waste being received above the average domestic waste concentrations as may be defined by law. (b) The surcharge shall be added to the Operation and Maintenance costs billed to the local governmental entity involved with the Project upon which the surcharge has been invoked. (c) The surcharges shall be invoked effective the monthly meter reading period during which the violation first occurs and shall continue until such violation is remedied. (d) The surcharges shall be placed into the Operations and Maintenance budget of the Regional System. G. Moratoriums The County shall invoke moratoriums upon the local governmental entities involved with the Project when such entities: 1. Discharge into the Regional System for a period of four (4) out of six (6) consecutive calendar months a quantity of wastewater which exceeds such entity's maximum flow input amounts (reserved allocations); or 2. Discharge into the Regional System wastewater which violates the regulations of the applicable federal, state and /or local governments and /or agencies and such entities do not promptly act to remedy such violations. A moratorium as provided herein shall mean a suspension of the issuance of all building permits for the entity. The moratorium shall remain in effect until the condition causing the same has been resolved satisfactory to the County. 55 SECTION IE Regional System Distinct From Town System It is understood that the Regional System shall be distinct and separate from the existing system of the Town. As such, except as expressly provided in this Agreement, the County may, with respect to the Regional System: A. Operate, maintain, manage, regulate and control the Regional System; B. Establish and set all rates, fees, and other charges applicable thereto; C. Adopt such ordinances, rules, regulations and other procedures as it deems appropriate therefor; D. Collect and retain revenues and other monies obtained in the operation of the same; and E. Otherwise, exercise with respect thereto any and all rights, authorities or privileges it may be or has been granted by law. SECTION E Existing Collection System of Town A. Ownership The existing collection system of the Town shall be and remain the sole property of the Town. B. gyrations and Maintenance The Town shall be solely responsible for the operations and maintenance of its existing collection system. C. Rates Fees and Other Charaes 1. Establishment. The Town shall establish and set all rates, fees, and other charges for sewer connections and services provided from its existing collection system. 2. Billing and Collection. The Town shall be responsible for billing all sewer service customers served or to be served by its existing collection system. All costs related to billing and collection shall be paid by Town. D. Administrative Expenses The Town shall be responsible for all administrative, legal, and other costs associated with its existing collection system. E. Indemnification of County The Town shall and hereby does indemnify and hold harmless the County from and against all costs, loss, expenses, (including attorneys' fees) claims, suits and judgments whatsoever in connection with any and all liability arising out of any error or omission made or caused by the Town and /or its officers, agents end employees in connection with its existing sewer collection system or any other sewer collection system operated by the Town. SECTION YI Certain Expansions Related to the Town A. mansions to Collection System of Town - County Nonoarticipent 1. Applicability. The provisions of this subsection shall apply in the event sewerage collection pipelines, force 56 mains, and /or related facilities are constructed such that effluent therefrom shall flow through the Town Effluent Meter, and the same have been either: (a) constructed or caused to be constructed solely by the Town, OR (b) constructed by some person, firm, or entity other than the County, and accepted by the Town as part of its collection system. 2. Ownership. Sewerage collection pipelines, force mains and /or related facilities as identified in subsection A(1) above shall be and remain the sole property of the Town. 3. Operation and Maintenance. The Town shall be solely responsible for the operation and maintenance of any sewerage collection pipelines, force mains, and /or related facilities as identified in subsection A(1) above. 4. Rates, Fees, and Other Charges. The Town shall establish and set all rates, fees, and other charges for sewer connections and services provided from any sewerage collection pipelines, force mains, and /or related facilities as identified in subsection A(1) above. 5. Billing and Collection. The Town shall be responsible for billing all sewer service customers served by sewerage collection pipeline, force mains, and /or related facilities as identified in subsection A(1) above. All costs related to billing and collection shall be paid by Town. 6. - Administrative Expenses. The Town shall be responsible for all administrative, legal, and other costs associated with sewerage collection pipeline, force mains, and /or related facilities as identified in subsection A(1) above. B. Expansions for Benefit of Town - Countv Nonparticipant 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains, and /or related facilities to be constructed such that effluent therefrom shall not flow through the Town Effluent Meter, but shall flow otherwise into the Regional Interception Pipeline, and the same are to be either: (a) constructed or caused constructed solely by the Town, OR (b) constructed by some person, firm, or entity other than the County and the areas serviced therefrom are to be incorporated into the municipal boundaries of the Town. 2. Connection Subject to County. Approval. Any sewerage collection pipeline, force mains, and /or related facilities identified in subsection B(1) above shall not be connected to the Regional Interception Pipeline or any other pipeline or main owned by the County until such connection is approved in writing by the County. 3. Ownership. Any sewerage collection pipelines, force mains, and /or related facilities identified in subsection B(1) above shall be and remain the sole property of the Town. 4. Provisions Subject to Mutual Agreement. With respect to any sewerage collection pipelines, force mains, and /or related facilities identified in subsection B(1) above, it is agreed that County and Town shall collaborate, and prior to construction of the same, agree to provisions with respect thereto regarding the following: 57 (a) Metering of effluent transmitted therefrom, (b) Operation and maintenance thereof, (c) Rates, fees, and other charges applicable thereto, (d) Responsibility for billings and collections related thereto; and (e) Responsibility for administration expenses regarding the same. C. County ! Expansions to Collection System of Town 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or related facilities to be constructed outside the corporate limits of the Town and such that effluent therefrom shall flow through the Town Effluent Meter and the same are to be either: (a) constructed or caused to be constructed solely by the County, or (b) constructed by some person, firm or entity other than the Town and are to be accepted by the County as part of its collection system. 2. Connection Subject to Town Approval. Any sewerage collection pipelines, force mains and /or related facilities identified in subsection C(1) above shall not be connected to the existing collection system of the Town or any system identified in subsection A(1) hereof until such connection is approved in writing by the Town. 3. Ownership. Any sewerage collection pipeline, force mains and /or related facilities identified in subsection C(1) above shall be and remain the sole property of the County. 4. Provisions Subject to Mutual Agreement. With respect to any sewerage collection pipelines, force mains and /or related facilities identified in subsection C(l) above, it is agreed that County and Town shall collaborate, and prior to construction of the same, agree as to provisions with respect thereto regarding the following: (a) Metering of effluent transmitted therefrom, (b) Operation and maintenance thereof, (c) Rates, fees and other charges applicable thereto, (d) Responsibility for billings and collections related thereto; and (e) Responsibility for administrative expenses regarding the same. D. County Expansions in Vicinity of Town 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or related facilities constructed such that effluent therefrom shall not flow through the Town Effluent Meter, but shall flow otherwise into the Regional Interceptor Pipeline, and the same has been either: (a) constructed or caused to be constructed solely by the County, or (b) constructed by some person, firm or entity other than the Town, and accepted by the County as part of its collection system. r` 58 2; Ownership. sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above shall be and remain the sole property of the County. 3. Operation and Maintenance. The County shall be solely responsible for the operation and maintenance of any sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(l) above. 4. Rates, Fees and Other Charges. The County shall establish and set all rates, fees and other charges for sewer connections and services provided from any sewerage collection pipeline, force mains and /or related facilities as identified in subsection D(1) above. 5. Billing and Collections. The County shall be responsible for billing all sewer service customers served by sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above. All costs related to billing and collection shall be paid by County. 6. Administrative Expenses. The County shall be responsible for all administrative, legal and other costs associated with any sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above. E. Expansions Resulting from Joint Cooperation of Town and County /Other Expansions Not Identified 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or related facilities constructed or caused to be constructed as a result of a joint effort of the County and Town or planned or caused to be constructed pursuant to some other plan not identified herein. 2. Provisions Subject to Mutual Agreement. With respect to any sewerage collection pipelines, force mains and /or related facilities as identified in subsection E(1) above, it is agreed that County and Town shall collaborate and, prior to construction of the same, agree as to provisions with respect thereto regarding the following: (a) Ownership thereof, (b) Metering of effluent transmitted therefrom, (c) Operation and maintenance thereof, (d) Responsibility for establishment of rates, fees and other charges applicable thereto, (e) Responsibility for billings and collections related thereto, and (f) Responsibility for administrative expenses regarding the same. SECTION XII Expansion of Regional System A. Section Applicability The provisions of this Section shall apply in the event one or more of the following circumstances should arise: 1. The Town determines that it desires additional wastewater treatment plant capacity such that an expansion must be made to the Regional Treatment Facility to obtain such additional capacity. 2. The County determines that it desires additional wastewater treatment plant capacity such that an expansion must be 59 made to the Regional Treatment Facility to obtain such additional capacity. 3. A determination is made that wastewater flow from the Town into the Regional Interceptor Pipeline has increased or is anticipated to increase to such extent that the Regional Interceptor Pipeline must be upgraded, expanded, and /or enlarged to meet the flow requirements of the Town. 4. The County determines that it desires to upgrade, expand, and /or enlarge one of the main interceptor pipelines constructed as part of the Project. 5. The County determines that it desires to provide wastewater treatment services to other local governmental entities• not involved with the Project. B. Neoative Impacts With respect to the implementation of any expansion to the Regional System as described in this Section, a negative impact shall be deemed to result from the same, if it is reasonably expected to cause: 1. Additional debt service costs to be incurred by the local governmental entity or entities not participating therein; or 2. A reduction or diminution in services to any or all the local governmental entities involved in the Project; or 3. Additional Operations and Maintenance costs to be incurred by the local governmental entity or entities not participating therein. C. Procedure In the event the County and /or the Town desire to implement an expansion as described in this Section, then the following procedures shall be utilized: 1. The County and /or the Town shall cause appropriate investigations, studies, and /or evaluations to be conducted to determine whether or not negative impacts will result from the desired expansion. 2. In the event a determination is made that negative impacts will result from the expansion, the County and /or the Town will formulate actions to be put into effect with the implementation of the expansion which will remedy the effect of such negative impacts. 3. The County and /or the Town shall present any proposal relative to the implementation of an expansion to the Regional Board. Such proposal shall include such documentation as will reasonably support its conclusions and opinions relative to negative impacts. 4. The County and /or the Town shall cooperate with the Regional Board as said Board carries out its functions as set forth in Section XIV of this Agreement. 5. Upon approval of the proposed expansion by the Regional Board, the party or parties involved shall be authorized to implement the proposed expansion. D. Additional Procedure Authorized for Benefit of County In the event that the Regional Board does not approve an expansion desired by the County, and /or fails to carry out its duties with respect to making its decision regarding such expansion in a timely manner, then it is understood that the County may proceed to implement an expansion if the expansion is reasonably •+ expected to cause no negative impacts on the local governmental entity or entities not involved in the expansion; or, those negative impacts reasonably expected to result from the expansion have been or will be, upon implementation of the expansion, remedied by the County. Such expansion as is herein authorized may be jointly implemented by the County and another of the local governmental entities involved in the Project. it is agreed that any wastewater treatment plant capacity and /or any interceptor line capacity resulting pursuant to such expansion shall be allocated to the County and, if applicable, the other local governmental entity involved with said expansion. E. Additional Procedure Authorized for Benefit of Town In the event that the Regional Board does not approve an expansion desired by the Town, and /or fails to carry out its duties with respect to making its decision regarding such expansion in a timely manner, then it is understood that the Town may proceed to implement an expansion if the expansion is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the expansion; or, those negative impacts reasonably expected to result from the expansion have been or will be, upon implementation of the expansion, remedied by the Town. Such expansion as is herein authorized may be jointly implemented by the Town and another of the local governmental entities involved in the Project. PROVIDED, HOWEVER, that should the Town determine to proceed as provided hereunder, that it shall do so under the following terms and conditions: 1. The Town shall employ consulting engineers, acceptable to and approved by County, to design the desired expansion. Upon completion, the plans and specifications for the expansion shall be presented to the County for review and approval. The County shall approve such plans and specifications unless good cause exists to disapprove the same. The County agrees to not unreasonably withhold approval of such plans and specifications. 2. The County, as operator of the Regional System, shall collaborate and cooperate with the Town in order to obtain the necessary permits from the applicable federal, state and /or local governments and /or agencies so as to proceed with construction of the expansion. 3. The County, as operator of the Regional System, and the Town shall make provision for the joint submission of the expansion project for bids. The contract or contracts for construction shall thereafter be awarded according to law. The decision as to which bid or bids to accept or any decision to rebid the project shall be made by the Town. 4. During construction it is agreed that the County shall be authorized to inspect and observe the construction process so as to insure the acceptable completion of the expansion. 5. All costs associated with the expansion shall be paid by the Town. Administrative costs incurred by the County shall be paid by the Town to the County upon billing by the County. Costs of design, construction observation and other engineering 61 services shall be paid directly by the Town to the engineer. In the event it is necessary for the County to enter into contracts for the construction of the expansion (for the benefit of the Town) costs incurred pursuant to such contracts shall be paid by the Town over the course of the construction period within ten (10) days after submission of periodic pay estimates [as issued by the contractor(s) and /or engineer]. 6. It is agreed that any wastewater treatment plant capacity and /or any interceptor line capacity resulting pursuant to the above described procedure shall be allocated to and owned by the Town. 7. As set forth in this proviso, the term Town shall include, if applicable, the other local governmental entity involved with said expansion. SBCTIOR ZIII Sale of Capacity Allocations in Regional System A. Section Anola ab+ i y The provisions of this Section shall apply in the event one or more of the following circumstances should arise: 1. The Town determines that it desires to sell all or a portion of its capacity allocation in the Regional System to one or more of the other local governmental entities involved with the Project. 2. The Town determines that it desires to purchase all or a portion of the capacity allocation in the Regional System held by one or more of the other local governmental entities involved with the Project. 3. The County determines that it desires to sell all or a portion of its capacity allocation in the Regional System to one or more of the other local governmental entities involved with the Project. 4. The County determines that it desires to purchase all or a portion of the capacity allocation in the Regional System held by one or more of the other local governmental entities involved with the Project. B. Negative Impact With respect to the purchase and /or sale of capacity allocations in the Regional System as described in this Section, a negative impact shall be deemed to result from a purchase and /or sale if such purchase and /or sale is reasonably expected to cause: 1. Additional debt service costs to be incurred by the local governmental entity or entities not parties to the purchase and /or sale; or 2. A reduction or diminution in services to any or all the local governmental entities involved in the Project; or 3. Additional Operations and Maintenance costs to be incurred by the local governmental entity or entities not parties to the purchase and /or sale. C. Procedure In the event the County and /or the Town desire to purchase and /or sell capacity allocations in the Regional System as described in this Section, then the following procedures shall be utilized: 62 1. The County and /or the Town shall cause appropriate investigations, studies and /or evaluations to be conducted to determine whether or not negative impacts will result from the purchase and /or sale. 2. In the event a determination is made that negative impacts will result from the purchase and /or sale, the County and /or the Town will formulate actions to be put into effect together with the purchase and /or sale which will remedy the effect of such negative impacts. 3. The County and /or the Town shall 'present any proposal relative to the purchase and /or sale of capacity allocations in the Regional System to the Regional Board. Such proposal shall include such documentation as will reasonably support its conclusions and opinions relative to negative impacts. 4. The County and /or the Town shall cooperate with the Regional Board as said Board carries out its functions as set forth in Section XIV of this Agreement. 5. Upon approval of the proposed purchase and /or sale by the Regional Board, the parties involved shall be authorized to complete said purchase and /or sale. D. Additional Procedure Authorized for Benefit of County In the event that the Regional Board does not approve a proposal made by the County to purchase and /or sell capacity allocations in the Regional System, and /or fails to carry out its duties with respect to making its decision regarding such purchase and /or sale in a timely manner, then it is understood that the County may proceed to consummate the proposed purchase and /or sale if the purchase and /or sale is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the purchase and/or sale or, those negative impacts reasonably expected to result from the purchase and /or sale have been or will be, upon consummation of the purchase and /or sale, remedied by the County. E. Additional Procedure Authorized for Benefit of Town In the event that the Regional Board does not approve a proposal made by the Town to purchase and /or sell capacity allocations in the Regional System, and /or fails to carry out its duties with respect to making its decision regarding such purchase and /or sale in a timely manner, then it is understood that the Town may proceed to consummate the proposed purchase and /or sale if the purchase and /or sale is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the purchase and /or sale or, those negative impacts reasonably expected to result from the purchase and /or sale have been or will be, upon consummation of the purchase and /or sale, remedied by the Town. PROVIDED HOWEVER, that should the Town consummate a sale of all or a portion of its capacity allocation in the Regional System to another local governmental entity involved in the Project, the Town shall be and remain liable to the County hereunder for the Town's portion of the costs of the Regional System. AND FURTHER PROVIDED, that should a purchase and /or sale as provided hereunder cause any modification to be made to the Regional System, then, such modification shall be completed upon the following terms and conditions: 63 1. The Town shall employ consulting engineers acceptable to and approved by County, to design the desired modification. Upon completion, the plans and specifications for the modification shall be presented to the County for review and approval. The County shall approve such plans and specifications unless good cause exists to disapprove the same. The County agrees to not unreasonably withhold approval of such plans and specifications. 2. The County, as operator of the Regional System, shall collaborate and cooperate with the Town in order to obtain the necessary permits from the applicable federal, state and /or local governments and /or agencies so as to proceed with construction of the modification. 3. The County, as operator of the Regional System, and the Town shall make provision for the joint submission of the modification project for bide. The contract or contracts for construction shall thereafter be awarded according to law. The decision as to which bid or bids to accept or any decision to rebid the project shall be made by the Town. 4. During construction it is agreed that the County shall be authorized to inspect and observe the construction process so as to insure the acceptable completion of the modification. 5. All costs associated with the modification shall be paid by the Town. Administrative costs incurred by the County shall be paid by the Town to the County upon billing by the County. Costs of design, construction observation and other engineering services shall be paid directly by the Town to the engineer. In the event it is necessary for the County to enter into contracts for the construction of the modification (for the benefit of the Town) costs incurred pursuant to such contracts shall be paid by the Town over the course of the construction period within ten (10) days after submission of periodic pay estimates [as issued by the contractor(s) and /or engineer]. SECTION XIV Cape Fear Regional Wastewater Board A. Creation The County and the Town agree to cooperate and participate in the establishment of the Cape Fear Regional Wastewater Board (hereinafter sometimes referred to as the "Regional Board ") in accordance with the provisions of this Section. It is acknowledged that the County has entered into Agreements with the other local governmental entities involved with the Project and that each such Agreement contains a Section regarding the Regional Board which is in substance identical to this Section. It is understood that the Town and the County hereby agree that they shall abide by those provisions of this Agreement concerning the Regional Board as the same apply to the other local governmental entities involved with the Project. B. purpose of Regional Board It is the desire of the local governmental entities involved with the Project to create the Regional Board for the following purposes: 1. To create a forum where the concerns and desires of such entities may be freely and openly discussed so as to insure that all entities will be made aware of the status of all aspects of the Regional System and its operation. JIM 2.. To promote cooperation between such entities. 3. To insure that all such entities will be provided an opportunity to make suggestions and comments relative to the status of the Regional System and its operation. 4. To review proposals to modify the existing status of the Regional System and its operation. 5. To review proposals to expand the Regional System and to promote agreement and cooperation between such entities with respect thereto. 6. To carry out and implement its duties and authorities set forth in this Agreement. C. Membership Two members of the Regional Board shall be appointed by each local governmental entity involved with the Project, one of which shall be a member of the governing body of the entity appointing such members. The members of the Regional Board shall serve at the pleasure of the Board appointing them. D. Initial Appointment The Regional Board shall be initially appointed prior to January 17, 1990. E. Meetinas Regular meetings of the Regional Board shall be held on the fourth Tuesday of the first month in each calendar quarter of the year at 7:00 o'clock p.m., and at such other times as requested by any entity represented on said Board. The Board shall meet in the Conference Room of the Northeast Metropolitan Water Plant Facility located on West Duncan Street in Lillington, North Carolina. F. Voting Each entity represented on the Regional Board shall be entitled to one vote on each issue coming before the Board and that vote may be cast by either member of the Regional Board representing such entity. Both members representing an entity need not be present for that entity's full vote to be cast. G. Officers At the first meeting of the Regional Board each calendar year, the Regional Board shall elect from its membership a Chairman and a Vice - Chairman. The fact that a Board member shall be elected to either office shall have no effect upon the voting rights of that member or of the entity such member represents. H. Operating Procedures The proceedings of the Regional Board shall be conducted in accordance with the most recent edition of Robert's Rules of Order, except where the provisions of this Agreement provide otherwise. I. Duties of Regional Board Reaardina Purchase /Sale of Regional System Capacity Allocations and Regional System Expansions 1. Statement of Intent. It is the intent of the local governmental entities involved with the Project to provide, through the Regional Board, a forum for discussion, review and approval of any proposal to purchase and /or sell capacity allocations in the Regional System or to expand the Regional System. In connection 65 therewith , the Board shall not unreasonably withhold approval of such proposal, but rather shall be required to approve the same , unless good cause shall be shown not to do so. Additionally, the Board shall use its best efforts to promote cooperation and agreement between the several entities involved with the Project with respect to such proposals. 2. Procedure. At such time as one or more of the local governmental entities involved with the Project present a proposal to the Board to implement an expansion as provided in Section XII of this Agreement and /or a proposal to purchase and /or sell Regional System capacity allocations as provided in Section XIII of this Agreement the Regional Board shall: (a) Discuss and evaluate the proposal presented and explore the possibility of formulating an agreement between all the local governmental entities involved with the Project to achieve a mutually beneficial result for all such entities. (b) Discuss and evaluate the conclusions and opinions of the proposing entity or entities with regard to negative impacts of the proposal and, if applicable, the plans of such proposing entity or entities to remedy negative impacts. (c) In the event of disagreement, offer comments and suggestions with regard to terms and conditions to be implemented as part of the proposal which will remedy negative impacts. (d) In the event of disagreement, require the disagreeing entity or entities or the Board members representing the same to provide appropriate documentation and /or data to support its or their respective position concerning the SECTION XV general Provisions A. Successors to the county or the Town In the event of any occurrence rendering the County and /or the Town incapable of performing under this Agreement, any successor of the County and /or the Town, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the County and /or Town hereunder. The covenants and agreements contained in this Agreement are binding on the parties hereto and their successors, assigns and legal representatives. B. Regulatory Acencaes This Agreement is subject to such rules, regulations, statutes and /or laws as may be applicable to such or similar agreements in this State and the parties agree to collaborate when necessary to obtain such permits, certifications, or the like, as may be required to comply therewith. C. Modification The provisions of this Agreement may be modified or altered by mutual agreement, EXCEPT with regard to Section XIV when any modification or alteration thereto shall be agreed upon by all governmental entities represented on said Regional Board. PROVIDED, HOWEVER, that when applicable, prior to such modification or alteration, approvals therefor will be obtained when necessary from the appropriate Federal and /or State agencies. All modifications or alterations shall be in writing, and presented to all other entities prior to any entities' modifying their original Agreement. e D. Modifications Resultinc from a Chance in Project Participants This Agreement has been entered into upon the assumption that in addition to the County, the Town and the Buies Creek -Coats Water and Sewer District of Harnett County, that the Town of Angier will participate in the Project. In the event the Town of Angier does not participate, it is agreed that provisions herein referencing its participation and provisions herein requiring modification as a result of its nonparticipation shall be amended, modified or otherwise corrected. E. Authority to Determine Certain Details Whenever, in the course of performing the various terms of this Agreement, it becomes necessary for the parties to make determinations with respect to certain details not specifically provided for herein, such as inspections, system testing or the like, appropriate representatives of the parties may collaborate and mutually agree upon such matters, without need for the amendment or modification hereof. F. Assignments Unless specifically provided in this Agreement, it is agreed that neither the County nor the Town may assign, transfer and /or convey their respective rights and /or obligations hereunder without the express written consent of the other. G. Local Government Commission Where applicable, with respect to this Agreement and the construction of the Project, the Town and the County agree to obtain the necessary approvals from the Local Government Commission as are required thereby. H. ordinances The Town covenants that prior to the commencement of the transmission of wastewater into the Regional Interceptor Pipeline, it will adopt an Ordinance regulating the use of its sewerage collection systems. Said Ordinance shall, among other things, limit and /or prohibit (where appropriate) the discharge of wastewater into the said sewerage collection systems where such wastewater would, singly or by interaction, with other wastewater, cause harm or damage to, or interfere with the proper operation of the Regional System, and /or treatment process or cause adverse effects upon the receiving waters from the Regional Treatment Facility. I. Notices Any notice required to be given hereunder by the County to the Town shall be made by the County in writing and mailed by first class mail to the Town of Lillington at the following address: Post Office Box 296 Lillington, North Carolina 27546 Any notice required to be given hereunder by the Town to the County shall be made by the Town in writing and mailed by First Class mail to the County Manager, Harnett County, at the following address: Post Office Box 759 Lillington, N. C. 27546 67 J. Authority The County and the Town represent and warrant, each to the other, the existence of all capacity, authority, resolutions and actions necessary to execute this Agreement. K. Duplicate Agreements This Agreement is executed in duplicate originals, one of which is retained by each party hereto. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the day and year written. Executed by Town of Lillington this 18thday of December, 1989. Town of Li lington ( By A. Lincoln Faul , r Attest: Deborah C. Phillips, glerk Executed by the County of Harnett, this 18thday of December, 1989. COU`NTTY� OF (CHAR- NfETT�- -�� By // a� of )J /O Uu+�' u--+ L yd G. Stewart, Chairman Harnett County Board of Commissioners Attest: u /M... -oaa. / Vanessa W. Young Cler to the Board - NORTH CAROLINA HARNSTT COUNTY ACKNOWLEDGMENT I, a Notary Public of the County and State aforesaid, certify that A. LINCOLN FAULK, who, being by me duly sworn, says that he is Mayor of the Town of Lillington and that Deborah C. Phillips in Clerk of said Town, that the seal affixed to the foregoing and attested instrument is the seal of said Town, and that said instrument was signed by him as Mayor of said Town and by the Clerk of said Town, who affixed the official seal of said Town to said instrument; and that the said A. Lincoln Faulk, Mayor, acknowledged said instrument to be the act and deed of the Town of Lillington. Witness my hand and notarial seal this the Lbw' day of December, 1989. /ia� �� — °/ Notary Public My Commission Expires / �- /e - NORTH CAROLINA ACKNOWLEDGMENT HARNETT COUNTY 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, 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 _"th day of December, 1989. & I Notary Public My Commission Expires: 7 -22 -92 -KPH 'n8'% NOIARY ass PUBLIC L! • irI1IK4SMil aJ10=1 RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT WITH THE BUIES CREEK- COATS WATER AND SEWER DISTRICT OF HARNETT.COUNTY - REGARDING THE CAPE FEAR REGIONAL WASTEWATER SYSTEM WHEREAS, the Harnett County Board. of Commissioners, (hereinafter sometimes referred tows the "Board ") has heretofore caused a comprehensive wastewater study to be conducted for the purpose of examining and analyzing the wastewater facilities needs of Harnett County; and WHEREAS, pursuant to the recommendations of said study, the County of Harnett formulated a plan to construct a wastewater facility system designated as the Cape Fear Regional Wastewater System; and WHEREAS, the County of Harnett has requested the Buies Creek - Coats Water and Sewer District of Harnett. County to participate in the construction and use of said System and the Buies Creek - Coats Water and Sewer District of Harnett County has agreed so to do; and WHEREAS, attached to this Resolution as Exhibit "A" is a copy of an Agreement between the County of Harnett and the Buies Creek - Coats Water and Sewer District of Harnett County setting forth the various details of the agreements of said parties with respect to the Cape Fear Regional Wastewater System; and WHEREAS, upon review and consideration . of said.. Agreement, it is the finding of the Board that the construction of said regional wastewater system will be of great benefit to the current and future health and well being of the citizens of Harnett County and the Buies Creek - Coats Water and Sewer District of Harnett County; and WHEREAS, it is the desire of the Board that the County of Harnett enter into said Agreement so to implement the Cape Fear Regional Wastewater System. NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. The County of Harnett shall and is hereby authorized to enter into the Agreement between said County and the Buies Creek - Coats Water and .Sewer District of Harnett County, a copy of which is attached hereto as Exhibit "A ". 2. . The appropriate officers of the County of Harnett are hereby directed to execute the originals of said Agreement. Duly adopted this 18th day of December, 1989 upon motion made by Commissioner Hudson , seconded by Commissioner Smith , and adopted by the following vote: Ayes 4 Noes 0 Abstained 0 Absent 1 Harnett County Byo-aard of Commissioners By: 4 /J Attest: oy G. Stewart, Chairman - M,caati, (N • v ku� , y Vanessa W. Young, erk the Board EXHIBIT "A" NORTH CAROLINA AGREEMENT HARNETT COUNTY THIS AGREEMENT is made and entered into this 18th day of December, .1989 by and between the COUNTY OF HARNETT, a body politic organized and existing under the laws of the State of North Carolina (hereinafter sometimes referred to as the "County ") and the BUIES CREEK -COATS WATER AND SEWER DISTRICT OF HARNETT COUNTY, a county water and sewer district organized and existing pursuant to the provisions of Article 6, Chapter 162A of the North Carolina General Statutes (hereinafter sometimes referred to as the "District "); • e W I T N E S S E T H: THAT WHEREAS, the County has caused a Comprehensive Wastewater Study to be conducted for the purpose of examining and analyzing the wastewater facilities needs of Harnett County; and WHEREAS, one of the results of that Study was the identification of a need for a regional sewer collection and treatment system to serve several local governmental entities existing in the central portion of Harnett County; and WHEREAS, in order to meet the demands of the existing and future wastewater disposal needs as identified, the construction of a wastewater facility system, designated as the Cape Fear Regional Wastewater System, has been recommended; and WHEREAS, the plans for the Cape Fear Regional Wastewater System include the replacement of the existing waste treatment facilities serving the Town of Lillington, the Town of Angier and the Buies Creek - Coate Water and Sewer District of Harnett County, the construction 'of a new regional wastewater treatment facility and the construction of main interceptor pipelines to connect the above named local governmental entities to the new treatment facility; and WHEREAS, in anticipation of the need for construction of wastewater facilities in Harnett County, the Board of Commissioners of Harnett County requested Federal and State assistance in funding the construction of the Cape Fear Regional Wastewater System; and WHEREAS, pursuant to the North Carolina Clean Water Revolving Loan and Grant Act of 1987 and the provisions of the Federal Water Quality Act of 1987, the State of North Carolina, through its Division of Environmental Management, Department of Environment, Health and Natural Resources, advised the County that monies for a loan to fund the costs of the Cape Fear Regional Wastewater System have been reserved for Harnett County; and WHEREAS, the County determined that it desired to proceed with the implementation, construction and eventual operation of the Cape Fear Regional Wastewater System, and in connection therewith requested the District to enter into an agreement with the County regarding the participation of the District in said System; and WHEREAS, the Board of Commissioners of the County of Harnett, sitting as the governing body of the Buies Creek -Coats Water and Sewer District of Harnett County, has determined that the Cape Fear Regional Wastewater System will be of great benefit to the health and well being of the citizens of the District, and WHEREAS, the District has therefore determined that it desires to participate in the Cape Fear Regional Wastewater System; and WHEREAS, pursuant to the provisions of Chapter 160A, Article 20, Part 1 of the North Carolina General Statutes entitled "Interlocal Cooperation, Joint Exercise of Powers," the County and the District desire to enter into this Agreement with respect to the Cape Fear Regional Wastewater System setting forth the terms and conditions of their mutual agreements regarding the same. NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements herein contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the County and the District agree as follows: 70 SECTION I Definitions The following definitions, designations and /or explanation of terms shall be used for the purposes of this Agreement: A. "Project" shall refer to the Cape Fear Regional Wastewater System construction project. H. "Regional Treatment Facility" shall refer to the wastewater treatment and disposal facility to be constructed as part of the Project, and thereafter owned, operated, managed and maintained by the County, except as hereinafter set forth. C. "Regional Interceptor Pipeline" shall refer to the wastewater interceptor pipeline to be constructed and installed as part of the Project which shall connect the existing system of the District to the wastewater interceptor pipeline (also to be constructed and installed as part of the Project) which shall run parallel to the Cape Fear River to the Regional Treatment Facility. D. "Regional System" shall refer to the entire wastewater collection, treatment and disposal system constructed and installed pursuant to the Project, and shall include all lands required for the installation of the same, together with continuous and adequate easements and rights of way over other lands necessary to erect, construct, install and lay and thereafter use, operate, inspect,, repair, replace, remove, change the size of such facilities as named, and in addition shall include the Regional Treatment Facility, the Regional Interceptor Pipeline and the District Effluent Meter. E. "District Effluent Meter" shall refer to that meter facility and related appurtenances constructed or otherwise provided for as part of the Project to which wastewater from the District shall be transmitted by the District and which shall measure the quantity of wastewater being delivered by the District into the Regional Interceptor Pipeline. F. Any terminology referring to the existing collection system of District shall mean that network of sewer collection pipelines, mains and /or related facilities composing the District's sewer collection system as shall exist on the date the County commences accepting wastewater from the District into the Regional System. G. "Funding Agency" shall refer to the Division of Environmental Management, Department of Environment, Health and Natural Resources of the State of North Carolina, or any successor agency thereto. H. "County Department of Public Utilities" shall refer to the Harnett County governmental department existing as of the date of this Agreement which administers, operates, and otherwise manages the public water and sewer systems owned and /or operated by the County, and shall include any other successor department or subdivision of the County which shall perform such functions. I. Any terminology referring to the local governmental entities involved with the Project shall refer to the District, the County, the Town of Lillington and the Town of Angier. A reference to the other local governmental entities involved with the Project shall mean the remainder of the above named local governmental entities not specifically the subject of the particular provision within which the reference is made. J. "Regional Board" shall refer to the Cape Fear Regional Wastewater Board as established in Section XIV of this Agreement. SECTION II Term This Agreement shall be a continuing contract relative to the furnishing of essential wastewater treatment and disposal services for the citizens of the District, and shall exist and continue until the County and the District shall mutually modify or terminate the same, BUT IN NO EVENT shall the same terminate until the loan (including principal and interest) described in Section III has been paid in full. SECTION III Funding Agency and Funds for Construction A. Fundina Source The funds for construction of the Project are anticipated to be supplied in the form of a loan made to the County pursuant to the North Carolina Clean Water Revolving Loan and Grant Act of 1987 and the provisions of the Federal Water Quality Act of 1987 as administered by the Division of Environmental Management, Department of Environment, Health and Natural Resources of the State of North Carolina. The terms of this Agreement are conditioned upon the receipt of said loan and approvals required therefor, and in the event said loan is not obtained by the County, or the Regional System is otherwise not constructed, then the County shall have no obligations hereunder to the District, and the District shall have no obligations hereunder to the County. B. Agreement Subiect to Requirements of Funding Agency The County and District agree to comply with all the conditions and requirements imposed by the Funding Agency, which shall include, but not be limited to, the Revolving Loan conditions, the establishment of pretreatment requirements, and the adoption of appropriate sewer use ordinances and user charge systems. C. District to Act in Timely Manner When, in the course of providing the various ordinances, information and /or other documents to the Funding Agency, the County must obtain such items from the District prior to submission to the Funding Agency, the District agrees to prepare, adopt and /or otherwise provide the same to the County in a timely manner. D. Loan Payment Sources All funds paid by the County and the District as principal and interest on the aforementioned loan shall be derived only from those sources specified by the Funding Agency. SECTION IV Construction and Ownership of Regional System A. County Lead Agency The County shall be responsible for administering and managing the construction and installation of the Regional System and in connection therewith shall: 1. Cause the appropriate pre- construction studies to be completed as are required by the Funding Agency and any other State or Federal agencies. 71 72 2. Cause such funding and permit applications as may be required to be completed and filed with the appropriate Federal and State agencies. 3. Cause plans and specifications for the Regional System to be completed in accordance with acceptable engineering practices and procedures, and in compliance with applicable rules, regulations and requirements of the Funding Agency and such other State and Federal agencies as may be applicable. 4. Obtain and acquire in its name continuous and adequate easements and rights of way on private lands necessary to erect, construct, install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect the Regional System. 5. Obtain and acquire in its name permits, franchises, and authorizations or other instruments by whatsoever name - designated, from public utilities and public bodies, commissions or agencies such as are necessary to erect, construct, install and lay, and thereafter use, operate, inspect, repair, maintain, replace, remove, change the size of or protect the Regional System upon, along or across ,streets, roads, highways and public utilities. 6. Obtain and acquire in its name such parcels of real property as are necessary for the construction of the Regional Treatment Facility, pump stations, and any other building or structure required for the completion of the Regional System. 7. Cause the contract or contracts for construction and installation of the Regional System to be advertised in accordance with applicable law, and to thereafter award and enter into such contract or contracts for said construction and installation as the County deems in the best interest of the Regional System. The determination as to which bidder or bidders shall be awarded contracts shall be made by the County. 8. Cause the installation and construction of the Regional System to be supervised by qualified and competent engineers. 9. Cause the District's existing sewerage collection pipelines and /or force mains which now connect to the existing County wastewater treatment facility near Buie's Creek to be disconnected therefrom and reconnected to the Regional Interceptor Pipeline. 10. Provide for the termination of use of the County's wastewater treatment facility near Buies Creek as is specified as part of the Funding Agency loan .package and /or provisions and guidelines. 11. Provide for the administration of the construction and installation of the Regional System and to provide for inspection of the same. 12. Provide for the administration of the funds obtained for the implementation, construction and installation of the Regional System. 13. Otherwise, manage the implementation, construction and installation of the Regional System. B. Ownership of Regional System The Regional System shall be and remain the property of the County, and the District shall have only that right, title or interest as expressly provided in this Agreement. It is understood 73 that except as to the rights of the District expressly provided in this Agreement, as owners of the Regional System, the County may operate, maintain, manage, regulate and control the same, subject to the terms of this Agreement, and otherwise exercise with respect thereto any rights, authorities or privileges it may be granted by statute. C. Joint Cooperation During the course of the implementation, design and construction of the Regional System, the District and the County agree to collaborate and cooperate with respect to the gathering of the documentation, data and /or other information necessary to properly design and construct the Regional System. Additionally, when requested by the County and /or the contractor(s) the District agrees to cooperate with the said County and /or the contractor(s) with respect to the testing of the Regional System, and preparation for connection of the same to the existing collection system of the District. D. conveyance of Easements The District agrees to convey to the County, without charge, easements and rights of way over, upon and across Properties owned by the District when such easements and rights of way are necessary to install and construct the Regional Interceptor Pipeline, and /or otherwise necessary to connect the Regional Interceptor Pipeline to the District Effluent Meter. Lill I SECTION V Capacity Allocations in Regional System A. Manner of Expression The allocations of capacity in the Regional System shall be expressed in terms of treatment capacity in the Regional Treatment Facility. a. District Allocation. The District shall have allocated and reserved for treatment of its wastewater twenty -five (258) percent of the treatment capacity of the Regional Treatment Facility. It is understood that the capacity of the Regional Treatment Facility is to be two million (2,000,000) gallons per day, and that therefore, the allocation and reservation herein made to the District equals five hundred thousand (500,000) gallons per day. C. Remaining Allocations. The remaining seventy -five (758) percent of the treatment capacity of the Regional Treatment Facility shall be allocated to the other local governmental entities involved with the Project or retained by the County for its use. SECTION VI Payment for Capacity Allocations in Regional System A. Loan Determination The amount of the loan awarded for the construction and installation of the Regional System shall be determined pursuant to the directives of the Funding Agency. As soon as practicable after final determination of the loan amount and related debt instrument details, the County shall provide such information to the District. 7 /� B. Loan Payment Portion Payable by District �} The District shall pay that portion of each and every payment due on the loan obtained through the Funding Agency as hereinafter provided: 1. The portion of each payment made by the District shall equal the product of the total amount of the principal and /or interest due for such payment multiplied by the percentage of the capacity allocation in the Regional System allocated and reserved for the District herein. 2. The portion of the payment to be made by District shall be paid to the County at least fifteen (15) days prior to the due date of the same. 3. It is understood that according to the Funding Agency, principal payments will be made annually on or before May i of each year, and that all interest payments will be made semiannually on or before May 1 and November 1 of each year. The portion of the payments to be made by District as herein provided shall apply to both the principal and interest and the interest only payments due on the loan. C. Remainder of Loan Payments The remaining portion of the loan payment for the Regional System, that is, that portion not paid by District, shall be obtained by the County from the other governmental entities participating in the Project, and /or supplied by the County. D. Transmission of Loan Payment The County shall be responsible for transmitting the loan payments to the Funding Agency or other appropriate agency as directed by the Funding Agency. County shall make said payments on a timely basis and any penalty or late charges shall not be paid by District, provided District has made its payment by the time required in Section VI (B) (2).. E. Costs in Excess of Loan It is the understanding of the County and the District that the current estimated Project cost is $7,500,000. The County and the District agree that should the Project exceed one percent (1$) of the estimated Project cost, including closing costs and other costs associated therewith, then the District shall have the option of either retaining its level of capacity allocations in the Regional System herein agreed upon, and thereby incur its share of the additional costs for the same, or reduce its level of capacity allocation in the Regional System herein agreed upon and thereby not incur the additional costs. In the event that during the pre- construction phases of the Project it becomes apparent that the estimated Project cost, together with closing costs and other costs associated therewith, shall exceed $7,500,000 by more than one percent (1%) of such amount, then the County shall notify all entities involved with the Project so that they may collaborate and cooperate as to cost overruns. The District shall determine which option it desires, and shall advise the County as to such determination within twenty (20) calendar days after notification to the District of the apparent cost overrun. Unless otherwise agreed, if the District shall elect to retain its level of capacity allocation as described above, or if the Project exceeds $7,500,000 by less than one percent (18) thereof, then the District shall pay such portion of the applicable excess as equals said excess multiplied by the percentage of the capacity allocation in the Regional System allocated and reserved 75 SECTION VII Wastewater Treatment and Metering A. County to Treat District Wastewater County agrees to treat at the Regional Treatment Facility during the term of this Agreement or any renewal or extension thereof, quantities of wastewater which flow through the District Effluent Meter up to and including the maximum amount of Five hundred thousand (500,000) gallons per day, which said maximum amount equals the allocation made and reserved for the District herein. 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 Environment, Health and Natural Resources. The County agrees to continue treating wastewater from the District at the County wastewater treatment facility near Buies Creek in accordance with that Contract entered into between the County and the District dated July 23, 1984 until such time as the use of said wastewater treatment facility is terminated, and to thereafter provide for an orderly transition of treatment services from said facility to the Regional Treatment Facility. B. District Effluent Meter County agrees to furnish and install as part of the Project and thereafter operate and maintain at such point as is designated by the engineers for the Regional System the necessary metering equipment, including a meter house or pit, and the required devices of standard type for properly measuring the quantity of wastewater transmitted into the Regional Interceptor Pipeline for treatment and to calibrate such metering equipment whenever requested by District, but not more frequently than once every twelve (12) months. However, the District may obtain independent verification of the calibration of the metering equipment. In this event, should the test result be deemed to be accurate, (as hereinbelow stated), then the District shall pay the costs of obtaining such test. If the test result is not deemed to be accurate, (as hereinbelow stated), then the County shall pay the costs of obtaining the test. A meter registering not more than two (28) percent above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the three (3) months previous to such test in accordance with the percentage of inaccuracy found by such tests. If the meter fails to register for any period, the amount of wastewater treated during such period .shall be deemed to be that amount of wastewater which equals the average monthly reading for the three (3) months previous to such failure, unless County and District shall agree upon a different amount. Appropriate officials of District shall have access to the meter at all reasonable times in order to verify readings. C. Meter Readings The District Effluent Meter shall be read by the County on the first day of each month. 76 SECTION VIII Operation and Maintenance of Regional System A. Management of Regional System Except as otherwise set . forth in this Agreement, the Regional System shall be managed, operated, and maintained by the County through its Department of Public Utilities, as a County operated public enterprise, and in connection therewith the County shall: 1. Formulate and thereafter maintain proper accounting procedures with respect to the Regional System in accordance with the North Carolina Local Government Budget and Fiscal Control Act as set forth in Article 3, Chapter 159 of the North Carolina General Statutes. 2. Operate and maintain the Regional System on an annual budget, which budget shall be formulated and maintained in accordance with the North Carolina Local Government Budget and Fiscal Control Act as set forth in Article 3, Chapter 159 of the North Carolina General Statutes. 3. Contract with a certified public accountant for annual audits of the Department of Public Utilities and the Regional System accounting procedures and records. 4. Obtain, and thereafter maintain, insurance and bonds as required by State law. 5. Comply with all Federal, State, and Local laws and regulations relative to the management, operations and maintenance of the Regional System. 6.. Invoke moratoriums in accordance with Section VIII (G) hereof to prevent the addition of wastewater customers to the Regional System and /or the increase in wastewater flow into the Regional System so as to protect the allocation in the Regional System reserved for the District herein. 7. Invoke surcharges in accordance with Section VIII (F) hereof upon the local governmental entities involved with the Project, in the event such entities exceed their maximum flow input amounts (reserved allocations) into the Regional System. 8. Report to the District on a monthly basis, or upon request, with respect to wastewater flow from all the entities involved with the Project and other matters as are appropriate. 9. Otherwise, provide for the orderly and efficient management, operation, and maintenance of the Regional System. B. Operations and Maintenance Expense Provided by District 1. The District shall, on a monthly basis, .provide that portion of the costs incurred for Operations and Maintenance of the Regional System as is described herein. Said monthly cost shall be based upon a Bulk Municipal Sewer. Rate as hereinafter formulated. 2. The portion of the costs incurred for Operations and Maintenance of the Regional System to be provided by District shall be that amount of money which equals the product of the Bulk Municipal Sewer Rate multiplied by the number of gallons of wastewater transmitted into the Regional Interceptor Pipeline as measured through the District Effluent Meter. 77 3. The Bulk Municipal Sewer Rate (hereafter "Bulk Rate ") shall be the Operations and Maintenance expense of the Regional System expressed in cost per one thousand (1000) gallons of wastewater treated. The Bulk Rate shall be determined on an annual cycle, and shall be based upon demonstrable expenditures for the operations and maintenance of the Regional System as indicated on the accounting records for the Regional System, together with anticipated increases or decreases in the same. The Bulk Rate shall be determined as follows: (a) The total amount of Operations and Maintenance costs incurred by the County during a fiscal year shall be calculated. (b) Such total amount of Operations and Maintenance costs shall then be divided by the number of gallons of wastewater treated at the Regional Treatment facility during the corresponding fiscal year. The per gallon cost thereupon derived shall be multiplied by one thousand (1000) to determine actual cost per one thousand (1000) gallons. (c) The actual cost per one thousand (1000) gallons shall thereupon be adjusted to reflect projected and anticipated increases or decreases in the Operations and Maintenance expenses reasonably expected to be incurred by the County in the forthcoming rate period. (d) The actual cost per one thousand (1000) gallons adjusted as provided in (c) above shall be the Bulk Rate for the next fiscal year. 9 4. Prior to the adoption of a bulk rate, the County shall seek the advice and recommendations of the Regional Board with respect thereto, and shall provide documentation to the regional Board to support its conclusions and opinions regarding the same. 5. On or before April 1 of each year, the County shall advise the District of an estimate of the bulk rate it intends to adopt and shall adopt such rate on or before May 1 of each year. 6. The District shall be furnished by the County, not later than the tenth (10th) day of each month, an itemized statement or bill (including the amount of wastewater treated, the rate and the amount due) for the amount of wastewater transmitted into the Regional Interceptor Pipeline through the District Effluent Meter during the preceding month, as established by the meter readings made on the first day of each month. 7. The District shall pay to the County the amount billed to them by the County on or before the twentieth (20th) day of the month in which the bill is rendered. C. Procedures Prior to Implementation of Annual Cycle 1. The Bulk Municipal Sewer Rate, prior to the implementation of the Annual Cyclical Procedures outlined in Section B above, shall be determined as follows: (a) During the period beginning on the date the County commences accepting wastewater from the District into the Regional System and continuing through the end of the fiscal year following the fiscal year during which wastewater is first accepted, the Bulk Municipal Sewer Rate shall be based upon estimated Operations and Maintenance expenses of the Regional System as determined by the County and the Project engineers. NNO (b) During the first year in which the Annual Cyclical Procedures are implemented, the Bulk Municipal Sewer Rate shall be based upon . demonstrable expenditures for the operations and maintenance of the Regional System as indicated on the accounting records for the Regional System made during the first fiscal year of its operation (that period beginning on the date the County commences accepting wastewater from the District into the Regional System and continuing through the end of the same fiscal year), together with projected and anticipated increases or decreases in the operations and maintenance expenses reasonably expected to be incurred by the County in the forthcoming rate period. 2. The first billing to the District shall be made not later than the tenth (10th) day of the month following the month during which the County commences accepting wastewater from the District. 3. All other procedures provided in Section B above shall be utilized in the calculating of the monthly bill to be rendered to and paid by District. D. System Failure The County will, at all times, operate and maintain the Regional System in an efficient manner and will take such action as may be necessary to furnish sewer services to the District. Temporary or partial system failures shall be remedied with all possible dispatch. Any reduction in services to the District shall be reduced or diminished in the same ratio or proportion as the same is reduced or diminished with respect to the other local governmental entities involved in the Project. Emergency failures caused by main pipeline breaks, power failure, flood, fire, earthquake, or other catastrophe shall excuse the County from the obligation to provide sewer services to the District for such reasonable period of time as may be necessary to restore service. E. Indemnification of District The County shall and hereby does indemnify and hold harmless the District from and against all costs, loss, expenses, (including attorney's fees), claims,suits and judgments whatsoever in connection with any and all liability arising out of any error or omission made or caused by the County and /or its officers, agents and employees in connection with any of the Regional System operated by the County. F. Surcharges 1. Invoking Surcharges. The County shall invoke surcharges upon the local governmental entities involved with the Project when such entities: (a) Discharge into the Regional System a quantity of wastewater which exceeds such entities maximum flow input amounts (reserved allocations), hereinafter referred to as "excess use surcharges" or (b) Discharge into the Regional System wastewater which violates the regulations of the applicable federal, state, and /or local governments and /or agencies, hereinafter referred to as "violation caused surcharges." 2. Excess Use Surcharges. The procedures for processing excess use surcharges shall be as follows: (a) Such surcharges shall be imposed and calculated based on each monthly meter reading period. 79 (b) The surcharges shall be invoked effective the monthly meter reading period during which the excess use first occurs and shall continue until such use is ended. (c) The amount of the surcharge shall be calculated based upon the surcharge as set by the Regional Board. (d) Surcharges shall be payable twice a year, on or before May 1 and November 1. Such surcharges shall be distributed as provided in Section 3 below. 3. Distribution of Excess Use Surcharges. Surcharges imposed and collected by reason of excessive discharges shall be distributed among the local governmental entities involved with the Project as follows; subject, however to the conditions set forth in (e) and (f) below: (a) For each month the Town of Lillington exceeds its reserved allocation, the surcharge assessed to it shall be paid 368 to the Town of Angier, 368 to the Buies Creek -Coats Water and Sewer District of Harnett County, and 288 to the County of Harnett. (b) For each month the Town of Angier exceeds its reserved allocation, the surcharge assessed to it shall be paid 408 to the Town of Lillington, 338 to the Buies Creek -Coats Water and Sewer District of Harnett County, and 278 to the County of Harnett. (c) For each month the Buies Creek -Coats Water and Sewer District of Harnett County exceeds its reserved allocation, the surcharge assessed to it shall be paid 338 to the Town of Angier, 408 to the Town of Lillington, and 278 to the County of Harnett. C, (d) For each month the County of Harnett exceeds its reserved allocation, the surcharge assessed to it shall be paid 318 to the Buies Creek -Coats Water and Sewer District of Harnett County, 318 to the Town of Angier, and 388 to the Town of Lillington. (e) The above distribution percentages have been calculated assuming that the respective reserved allocations for the entities involved with the Project are as follows: i. Lillington- 600,000 gallons per day ii. Angier- 500,000 gallons per day iii. Buies Creek -Coats District- 500,000 gallons per day iv. Harnett County- 400,000 gallons per day In the event that any one or more of the entities has increased its reserved allocation by expansion, purchase or otherwise, the percentages as set forth in paragraphs a - d above shall be modified and shall be stated as that portion which each entity owns, expressed as a percentage of the reserved allocations of all receiving entities. (f) In the event the total amount of gallons of capacity used by a potential receiving entity during a month, together with that number of gallons of capacity which equals the respective percentage applicable to such entity multiplied by the number of gallons of excess upon which the surcharge is calculated, exceeds the number of gallons of reserved capacity for that entity, then such entity shall receive only the amount of the surcharge which applies to the difference between its reserved allocation and the total amount of gallons of capacity used by that entity during 80 a month. Such portion of the surcharge not paid to the entity shall be prorated among the other receiving entities based on the percentages above stated. 4. Violation Caused Surcharges. The procedures for processing surcharges invoked by reason of violations shall be as follows: (a) The amount of the surcharge shall be calculated based upon the surcharge as set by the Regional Board and based on the strength of the waste being received above the average domestic waste concentrations as may be defined by law. (b) The surcharge shall be added to the Operation and Maintenance costs billed to the local governmental entity involved with the Project upon which the surcharge has been invoked. (c) The surcharges shall be invoked effective the monthly meter reading period during which the violation first occurs and shall continue until such violation is remedied. (d) The surcharges shall be placed into the Operations and Maintenance budget of the Regional System. G. Moratoriums The County shall invoke moratoriums upon the local governmental entities involved with the Project when such entities: 1. Discharge into the Regional System for a period of four (4) out of six (6) consecutive calendar months a quantity of wastewater which exceeds such entity's maximum flow input amounts (reserved allocations); or 2. Discharge into the Regional System wastewater which violates the regulations of the applicable federal, state and /or local governments and /or agencies and such entities do not promptly act to remedy such violations. A moratorium as provided herein shall mean a suspension of the issuance of all building permits for the entity. The moratorium shall remain in effect until the condition causing the same has been resolved satisfactory to the County. .SECTION IX Regional System Distinct From District System It is understood that the Regional System shall be distinct and separate from the existing system of the District. As such, except as expressly provided in this Agreement, the County may, with respect to the Regional System: A. Operate, maintain, manage, regulate and control the Regional System; B. Establish and set all rates, fees, and other charges applicable thereto; C. Adopt such ordinances, rules, regulations and other procedures as it deems appropriate therefor; D. Collect and retain revenues and other monies obtained in the operation of the same; and E. Otherwise, exercise with respect thereto any and all rights, authorities or privileges it may be or has been granted by law. SECTION X Existing Collection System of District A. Ownership The existing collection system of the District shall be and remain the solo= :roperty of the District. M B. Operations and Maintenance and Related Matters It is acknowledged that the County and the District have previously entered into a Contract dated July 23, 1984 relative to the operation of the existing collection system of the District. Pursuant thereto, the County shall be responsible for the following matters regarding the District's existing collection system: 1. Operation, management and maintenance thereof; 2. Establishment and setting of all rates, fees, and other charges for sewer connections and services provided therefrom; 3. Billing and collection of all such rates, fees and other charges; 4. Administrative, legal, and other costs associated therewith. SECTION xI Certain Expansions Related to the District A. Expansions to Collection System of District - County Nonparticipant 1. Applicability. The provisions of this subsection shall apply in the event sewerage collection pipelines, force mains, and /or related facilities are constructed such that effluent therefrom shall flow through the District Effluent Meter, and the same have been either: (a) constructed or caused to be constructed solely by the District, OR (b) constructed by some person, firm, or entity other than the County, and accepted by the District as part of its collection system. 2. Ownership. Sewerage collection pipelines, force mains and /or related facilities as identified in subsection A(1) above shall be and remain the sole property of the District. 3. Operations, Maintenance and Related Matters. With respect to any sewerage collection pipelines, force mains, and /or related facilities as identified in subsection A (1) above, the terms of that Contract previously entered into between the County and the District dated July 23, 1984 shall control with regard to the following matters: a. Operation and maintenance thereof; b. Rates, fees, and other charges applicable thereto; C. Responsibility for billings and collections related thereto; and d. Responsibility for administrative expenses regarding the same. B. Expansions for Benefit of District - County Nonparticipant 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains, and /or related facilities to be constructed such that effluent therefrom shall not flow through the District Effluent Meter, but shall flow otherwise into the Regional Interceptor Pipeline, and the same are to be either: (a) constructed or caused constructed solely by the District, OR 82 (b) constructed by some person, firm, or entity other than the County and the areas serviced therefrom are to be incorporated into the boundaries of the District. 2. Connection Subject to County Approval. Any sewerage collection pipeline, force mains, and /or related facilities identified in subsection B(1) above shall not be connected to the Regional interceptor Pipeline or any other pipeline or main owned by the County until such connection is approved in writing by the County. 3. Ownership. Any sewerage collection pipelines, force mains, and /or related facilities identified in subsection B(1) above shall be and remain the sole property of the District. 4. Provisions subject to Mutual Agreement. With respect to any sewerage collection pipelines, force mains, and /or related facilities identified in subsection B(1) above, it is agreed that County and District shall collaborate, and prior to construction of the same, agree to provisions with respect thereto regarding the following: (a) Metering of effluent transmitted therefrom, (b) Operation and maintenance thereof, (c) Rates, fees, and other charges applicable thereto, (d) Responsibility for billings and collections related thereto; and (e) Responsibility for administration expenses regarding the same. C. County Expansions to Collection System of District 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or related facilities to be constructed outside the boundaries of the District and such that effluent therefrom shall flow through the District Effluent Meter and the same are to be either: (a) constructed or caused to be constructed solely by the County, or (b) constructed . by some person, firm or entity other than the District and are to be accepted by the County as part of its collection system. 2. Connection Subject to District Approval. Any sewerage collection pipelines, force mains and /or related facilities identified in subsection C(1) above shall not be connected to the existing collection system of the District or any system identified in subsection A(1) hereof until such connection is approved in writing by the District. 3. Ownership. Any sewerage collection pipeline, force mains and /or related facilities identified in subsection C(1) above shall be and remain the sole property of the County. 4. Provisions Subject to Mutual Agreement. With respect to any sewerage collection pipelines, force mains and /or related facilities identified in subsection C(1) above, it is agreed that County and District shall collaborate, and prior to construction of the same; agree as to provisions with respect thereto regarding the following: Mm (a) Metering of effluent transmitted therefrom, (b) Operation and maintenance thereof, (c) Rates, fees and other charges applicable thereto, (d) Responsibility for billings and collections related thereto; and (e) Responsibility for administrative expenses regarding the same. D. County Expansions in Vicinity of District 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or related facilities constructed such that effluent therefrom shall not flow through the District Effluent Meter, but shall flow otherwise into the Regional Interceptor Pipeline, and the same has been either: (a) constructed or caused to be constructed solely by the County, or (b) constructed by some person, firm or entity other than the District, and accepted by the County as part of its collection system. 2. Ownership. Sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above shall be and remain the sole property of the County. 3. Operation and Maintenance. The County shall be solely responsible for the operation and maintenance of any sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above. 4. Rates, Fees and Other Charges. The County shall establish and set all rates, fees and other charges for sewer connections and services provided from any sewerage collection pipeline, force mains and /or related facilities as identified in subsection D(1) above. 5. Billing and Collections. The County shall be responsible for billing all sewer service customers served by sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above. All COSrs related to billing and collection shall be paid by County. 6. Administrative Expenses. The County shall be responsible for all administrative, legal and other costs associated with any sewerage collection pipelines, force mains and /or related facilities as identified in subsection D(1) above. E. exoansions Resulting from Joint Cooperation of District and County /Other Expansions Not Identified 1. Applicability. The provisions of this subsection shall apply to sewerage collection pipelines, force mains and /or related facilities constructed or caused to be constructed as a result of a joint effort of the County and District or planned or caused to be constructed pursuant to some other plan not identified herein. 2. Provisions Subject to Mutual Agreement. witn respect to any sewerage collection pipelines, force mains and /or related facilities as identified in subsection E(1) above, it is agreed that County and District shall collaborate and, prior to construction of the same, agree as to provisions with respect thereto regarding the following: M .5 (a) Ownership thereof, (b) Metering of effluent transmitted therefrom, (c) operation and maintenance thereof, (d) Responsibility for establishment of rates, fees and other charges applicable thereto, (e) Responsibility for billings and collections related thereto, and (f) Responsibility for administrative expenses regarding the same. SECTION %II Expansion of Regional System A. . Section Applicability The provisions of this Section shall apply in the event one or more of the following circumstances should arise: 1. The District determines that it desires additional wastewater treatment plant capacity such that an expansion must be made to the Regional Treatment Facility to obtain such additional capacity. 2. The County determines that it desires additional wastewater treatment plant capacity such that an expansion must be made to the Regional Treatment Facility to obtain such additional capacity. 3. A determination is made that wastewater flow from the District into the Regional Interceptor Pipeline has increased or is anticipated to increase to such extent that the Regional Interceptor Pipeline must be upgraded, expanded, and /or enlarged to meet the flow requirements of the District. 4. The County determines that it desires to upgrade, expand, and /or enlarge one of the main interceptor pipelines constructed as part of the Project. 5. The County determines that it desires to provide wastewater treatment services to other local governmental entities not involved with the Project. B. Negative Impacts With respect to the implementation of any expansion to the Regional System as described in this Section, a negative impact shall be deemed to result from the same, if it is reasonably expected to cause: 1. Additional debt service costs to be incurred by the local governmental entity or entities not participating therein; or 2. A reduction or diminution in services to any or all the local governmental entities involved in the Project; or 3. Additional Operations and Maintenance costs to be incurred by the local governmental entity or entities not participating therein. C. Procedure In the event the County and /or the District desire to implement an expansion as described in this Section, then the following procedures,shall be utilized: 1. The County and /or the District shall cause appropriate investigations, studies, and /or evaluations to be conducted to determine whether or not negative impacts will result from the desired expansion. 2. In the event a determination is made that negative impacts will result from the expansion, the County and /or the District will formulate actions to be put into effect with the implementation of the expansion which will remedy the effect of such negative impacts. 3. The County and /or the District shall present any proposal relative to the implementation of an expansion to the Regional Board. Such proposal shall include such documentation as will reasonably support its conclusions and opinions relative to negative impacts. 4. The County and /or the District shall cooperate with the Regional Board as said Board carries out its functions as set forth in Section XIV of this Agreement. 5. Upon approval of the proposed expansion by the Regional Board, the party or parties involved shall be authorized to implement the proposed expansion. D. Additional Procedure Authorized for Benefit of County In the event that the Regional Board does not approve an expansion desired by the County, and /or fails to carry out its duties with respect to making its decision regarding such expansion in a timely manner, then it is understood that the County may proceed to implement an expansion if the expansion is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the expansion; or, those negative impacts reasonably expected to result from the expansion have been or will be, upon implementation of the expansion, remedied by the County. Such expansion as is herein authorized may be jointly implemented by the County and another of the local governmental entities involved in the Project. It is agreed that any wastewater treatment plant capacity and /or any interceptor line capacity resulting pursuant to such expansion shall be allocated to the County and, if applicable, the other local governmental entity involved with said expansion. E. Additional Procedure Authorized for Benefit of District In the event that the Regional Board does not approve an expansion desired by the District, and /or fails to carry out its duties with respect to making its decision regarding such expansion in a timely manner, then it is understood that the District may proceed to implement an expansion if the expansion is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the expansion; or, those negative impacts reasonably expected to result from the expansion have been or will be, upon implementation of the expansion, remedied by the District. Such expansion as is herein authorized may be jointly implemented by the District and another of the local governmental entities involved in the Project. PROVIDED, HOWEVER, that should the District determine to proceed as provided hereunder, that it shall do so under the following terms and conditions: Me 1. The District shall employ consulting engineers, acceptable to and approved by County, to design the desired expansion. Upon completion, the plans and specifications for the expansion shall be presented to the County for review and approval. The County shall approve such plans and specifications unless good cause exists to disapprove the same. The County agrees to not unreasonably withhold approval of such plans and specifications. 2. The County, as operator of the Regional System, shall collaborate and cooperate with the District in order to obtain the necessary permits from the applicable federal, state and /or local governments and /or agencies so as to proceed with construction of the expansion, 3. The County, as operator of the Regional System, and the District shall make provision for the joint submission of the expansion project for bids. The contract or contracts for construction shall thereafter be awarded according to law. The decision as to which bid or bids to accept or any decision to rebid the project shall be made by the District. 4. During construction it is agreed that the County shall be authorized to inspect and observe the construction process so as to insure the acceptable completion of the expansion. 5. All costs associated with the expansion shall be paid by the District. Administrative costs incurred by the County shall be paid by the District to the County upon billing by the County. Costs of design, construction observation and other engineering services shall be paid directly by the District to the engineer. In the event it is necessary for the County to enter into contracts for the construction of the expansion (for the benefit of the District) costs incurred pursuant to such contracts shall be paid by the District over the course of the construction period within ten (10) days after submission of periodic pay estimates (as issued by the contractor(s) and /or engineer]. 6. It is agreed that any wastewater treatment plant capacity and /or any interceptor line capacity resulting pursuant to the above described procedure shall be allocated to and owned by the District. 7. As set forth in this proviso, the term District shall include, if applicable, the other local governmental entity involved with said expansion. SECTION BIII Sale of Capacity Allocations in Regional System A. Section Applicability The provisions of this Section shall apply in the event one or more of the following circumstances should arise: 1. The District determines that it desires to sell all or a portion of its capacity allocation in the Regional System to one or more of the other local governmental entities involved with the Project. 2. The District determines that it desires to purchase all or a portion of the capacity allocation in the Regional System held by one or more of the other local governmental entities involved with the Project. sob 3. The County determines that it desires to sell all or a portion of its capacity allocation in the Regional System to one or more of the other local governmental entities involved with the Project. 4. The County determines that it desires to purchase all or a portion of the capacity allocation in the Regional System held by one or more of the other local governmental entities involved with the Project. B. Negative Impact With respect to the purchase and /or sale of capacity allocations in the Regional System as described in this Section, a negative impact shall be deemed to result from a purchase and /or sale if such purchase and /or sale is reasonably expected to cause: 1. Additional debt service costs to be incurred by the local governmental entity or entities not parties to the purchase and /or sale; or 2. A reduction or diminution in services to any or all the local governmental entities involved in the Project; or 3. Additional Operations and Maintenance costs to be incurred by the local governmental entity or entities not parties to the purchase and /or sale. C. Procedure In the event the County and /or the District desire to purchase and /or sell capacity allocations in the Regional System as described in this Section, then the following procedures shall be utilized: 1. The County and /or the District shall cause appropriate investigations, studies and /or evaluations to be conducted to determine whether or not negative impacts will result from the purchase and /or sale. 2. In the event a determination is made that negative impacts will result from the purchase and /or sale, the County and /or the District will formulate actions to be put into effect together with the purchase and /or sale which will remedy the effect of such negative impacts. 3. The County and /or the District shall present any proposal relative to the purchase and /or sale of capacity allocations in the Regional System to the Regional Board. Such proposal shall include such documentation as will reasonably support its conclusions and opinions relative to negative impacts. 4. The County and /or the District shall cooperate with the Regional Board as said Board carries out its functions as set forth in Section XIV of this Agreement. 5. Upon approval of the proposed purchase and /or sale by the Regional Board, the parties involved shall be authorized to complete said purchase and /or sale. D. Additional Procedure Authorized for Benefit of County In the event that the Regional Board does not approve a proposal made by the County to purchase and /or sell capacity allocations in the Regional System, and /or fails to carry out its duties with respect to making its decision regarding such purchase and /or sale in a timely manner, then it is understood that the 0 County may proceed to consummate the proposed purchase and /or sale if the purchase and /or sale is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the purchase and /or sale or, those negative impacts reasonably expected to result from the purchase and /or sale have been or will be, upon consummation of the purchase and /or sale, remedied by the County. E. Additional Procedure Authorized for Benefit of District In the event that the Regional Board does not approve a proposal made by the District to purchase and /or sell capacity allocations in the Regional System, and /or fails to carry out its duties with respect to making its decision regarding such purchase and /or sale in a timely manner, then it is understood that the District may proceed to consummate the proposed purchase and /or sale if the purchase and /or sale is reasonably expected to cause no negative impacts on the local governmental entity or entities not involved in the purchase and /or sale or, those negative impacts reasonably expected to result from the purchase and /or sale have been or will be, upon consummation of the purchase and /or sale, remedied by the Town. PROVIDED HOWEVER, that should the District consummate a sale of all or a portion of its capacity allocation in the Regional System to another local governmental entity involved in the Project, the District shall be and remain liable to the County hereunder for the District's portion of the costs of the Regional System. AND FURTHER PROVIDED, that should a purchase and /or sale as provided hereunder cause any modification to be made to the Regional System, then, such modification shall be completed upon the following terms and conditions: 1. The District shall employ consulting engineers acceptable to and approved by County, to design the desired modification. Upon completion, the plans and specifications for the modification shall be presented to the County for review and approval. The County shall approve such plans and specifications unless good cause exists to disapprove the same. The County agrees to not unreasonably withhold approval of such plans and specifications. 2. The County, as operator of the Regional System, shall collaborate and cooperate with the District in order to obtain the necessary permits from the applicable federal, state and /or local governments and /or agencies so as to proceed with construction of the modification. 3. The County, as operator of the Regional System, and the District shall make provision for the joint submission of the modification project for bids. The contract or contracts for construction shall thereafter be awarded according to law. The decision as to which bid or bids to accept or any decision to rebid the project shall be made by the District. 4. During construction it is agreed that the County shall be authorized to inspect and observe the construction process so as to insure the acceptable completion of the modification. 5. All costs associated with the modification shall be paid by the District. Administrative costs incurred by the County shall be paid by the District to the County upon billing by the County. Costs of design, construction observation and other engineering services shall be paid directly by the District to the engineer. In the event it is necessary for the County to enter into contracts for the construction of the modification (for the benefit of the District) costs incurred pursuant to such contracts shall be paid by the District over the course of the construction period within ten (10) days after submission of periodic pay estimates (as issued by the contractor(s) and /or engineer]. SECTION %IV Cape Fear Regional Wastewater Board A. Creation The County and the District agree to cooperate and participate in the establishment of the Cape Fear Regional Wastewater Board (hereinafter sometimes referred to as the "Regional Board ") in accordance with the provisions of this Section. It is acknowledged that the County has entered into Agreements with the other local governmental entities involved with the Project and that each such Agreement contains a Section regarding the Regional Board which is in substance identical to this Section. It is understood that the District and the County hereby agree that they shall abide by those provisions of this Agreement concerning the Regional Board as the same apply to the other local governmental entities involved with the Project. B. Purpose of Regional Board It is the desire of the local governmental entities involved with the Project to create the Regional Board for the following purposes: 1. To create a forum where the concerns and desires of such entities may be freely and openly discussed so as to insure that all entities will be made aware of the status of all aspects of the Regional System and its operation. 2. To promote cooperation between such entities. 3. To insure that all such entities will be provided an opportunity to make suggestions and comments relative to the status of the Regional System and its operation. 4. To review proposals to modify the existing status of the Regional System and its operation. 5. To review proposals to expand the Regional System and to promote agreement and cooperation between such entities with respect thereto. 6. To carry out and implement its duties and authorities set forth in this Agreement. C. Membership Two members of the Regional Board shall be appointed by each local governmental entity involved with the Project, one of which shall be a member of the governing body of the entity appointing such members. The members of the Regional Board shall serve at the pleasure of the Board appointing them. D. Initial Appointment The Regional Board shall be initially appointed prior to January 17, 1990. • 90 E. Meetings Regular meetings of the Regional.Board shall be held on the fourth Tuesday of the first month in each calendar quarter of the year at 7:00 o'clock p.m., and at such other times as requested by any entity represented on said Board. The Board shall meet in the Conference Room of the Northeast Metropolitan Water Plant Facility located on West Duncan Street in Lillington, North Carolina. F. Voting Each entity represented on the Regional Board shall be entitled to one vote on each issue coming before the Board and that vote may be cast by either member of the Regional Board representing such entity. Both members representing an entity need not be present for that entity's full vote to be cast. G. Officers At the first meeting of the Regional Board each calendar year, the Regional Board shall elect from its membership a Chairman and a Vice - Chairman. The fact that a Board member shall be elected to either office shall have no effect upon the voting rights of that member or of the entity such member represents. H. Operating Procedures The proceedings of the Regional Board shall be conducted in accordance with the most recent edition of Robert's Rules of Order, except where the provisions of this Agreement provide otherwise. I. Duties of Regional Board Regarding Purchase /Sale of Regional System Capacity Allocations and Regional System Expansions 1. Statement of Intent. It is the intent of the local governmental entities involved with the Project to provide, through the Regional Board, a forum for discussion, review and approval of any proposal to purchase and /or sell capacity allocations in the Regional System or to expand the Regional System. In connection therewith., the Board.shall not unreasonably withhold approval of such proposal, but rather shall be required to approve the same , unless good cause shall be shown not to do so. Additionally, the Board shall use its best efforts to promote cooperation and agreement between the several entities involved with the Project with respect to such proposals. 2. Procedure. At such time as one or more of the local governmental entities involved with the Project present a proposal to the Board to implement an expansion as provided in Section XII of this Agreement and /or a proposal to purchase and /or sell Regional System capacity allocations as provided in Section XIII of this Agreement the Regional Board shall: (a) Discuss and evaluate the proposal presented and explore the possibility of formulating an agreement between all the local governmental entities involved with the Project to achieve a mutually beneficial result for all such entities. (b) Discuss and evaluate the conclusions and opinions of the proposing entity or entities with regard to negative impacts of the proposal and, if applicable, the plans of such proposing entity or entities to remedy negative impacts. (c) In the event of disagreement, offer comments 91 and suggestions with regard to terms and conditions to be implemented as part of the proposal which will remedy negative impacts. (d) In the event of disagreement, require the disagreeing entity or entities or the Board members representing the same to provide appropriate documentation and /or data to support its or their respective position concerning the disagreement. (e) Upon satisfactory determination of no negative impacts or substantiated reasonable plans to remedy negative impacts, approve the proposal presented. J. Duties of Regional Board Regarding Establishment of Surcharge Amount Prior to the time any of the local governmental entities involved with the Project commence obtaining services from the Regional System, the Regional Board shall set the amount of the surcharges to be invoked pursuant to Section VIII (F) hereof. Said surcharge amount shall thereafter be set on a yearly basis at the first meeting of each calendar year. K. Other Duties of Regional Board In addition to the other duties of the Regional Board as set forth in this Agreement, the Regional Board shall advise the County on the various aspects of operation and maintenance of the Regional System. L. Administration of Regional Board The County shall provide for the administration of the Regional Board, and in connection therewith: 1. Designates the Director or Head of the County Department of Public Utilities as the coordinator of the Regional Board. In such capacity, the Director shall coordinate meetings of the Regional Board, provide such administrative staffing as may be required therefor and to do such other acts, in keeping with the purposes of the Regional Board, as the Board requests. 2. Shall provide the designated meeting place for the Board. 3. Shall provide for such administrative personnel as may be required by the Regional Board to carry out its functions. M. Reports to the Regional Board Reports regarding the operation of the Cape Fear Regional Wastewater System shall be made in writing to each member of the Board at the regular meetings. Such reports shall include statements of revenues and expenditures, the operations status, flow information and other pertinent data. SECTION XV General Provisions A. Successors to the County or the District In the event of any occurrence rendering the County and /or the District incapable of performing under this Agreement, any successor of the County and /or the District, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the County and /or District hereunder. The covenants and agreements contained in this Agreement are binding on the parties hereto and their successors, assigns and legal representatives. 9 2 B. Reaulatory Agencies This Agreement is subject to such rules, regulations, statutes and /or laws as may be applicable to such or similar agreements in this State and the parties agree to collaborate when necessary to obtain such permits, certifications, or the like, as may be required to comply therewith. C. Modification The provisions of this Agreement may be modified or altered by mutual agreement, EXCEPT with regard to Section XIV when any modification or alteration thereto shall be agreed upon by all governmental entities represented on said Regional Board. PROVIDED, HOWEVER, that when applicable, prior to such modification or alteration, approvals therefor will be obtained when necessary from the appropriate Federal and /or State agencies. All modifications or alterations shall be in writing, and presented to all other entities prior to any entities' modifying their original Agreements. D. Modifications Resultina from a Chanae in Pro -iect. Partici ants I This Agreement has been entered into upon the assumption that in addition to the County, the District and the Town of Angier, that the Town of Lillington will participate in the Project. In the event the Town of Lillington does not participate, it is agreed that provisions herein referencing its participation and provisions herein requiring modification as a result of its nonparticipation shall be amended, modified or otherwise corrected. E. Authority to Determine Certain Details Whenever, in the course of performing the various terms of this Agreement, it becomes necessary for the parties to make determinations with respect to certain details not specifically provided for herein, such as inspections, system testing or the like, appropriate representatives of the parties may collaborate and mutually agree upon such matters, without need for the amendment or modification hereof. F. Assignments Unless specifically provided in this Agreement, it is agreed that neither the County nor the District may assign, transfer and /or convey their respective rights and /or obligations hereunder without the express written consent of the other. G. Local Government Commission Where applicable, with respect to this Agreement and the construction of the Project, the District and the county agree to obtain the necessary approvals from the Local Government commission as are required thereby. H. Ordinances The District covenants that prior to the commencement of the transmission of wastewater into the Regional Interceptor Pipeline, it will adopt an Ordinance regulating the use of its sewerage collection systems. said Ordinance shall, among other things, limit and /or prohibit (where appropriate) the discharge of wastewater into the said sewerage collection systems where such wastewater would, singly or by interaction with other wastewater, cause harm or damage to, or interfere with the proper operation of the Regional System, and /or, treatment process or cause adverse effects upon the receiving waters from the Regional Treatment Facility. I. Notices Any notice required to be given hereunder by the County to the District shall be made by the County in writing and delivered to the Buies Creek -Coats Water and Sewer District of Harnett County at the following address: Post Office Box 759 Lillington, North Carolina 27546 Any notice required to be given hereunder by the District to the County shall be made by the District in writing and delivered -to the County Manager, Harnett County, at the following address: Post Office Box 759 Lillington, N. C. 27546 J. Authority The County and the District represent and warrant, each to the other, the existence of all capacity, authority, resolutions and actions necessary to execute this Agreement. 7, IrTiM This Agreement is executed in duplicate originals, one of which is retained by each party hereto. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the day and year written. Executed by the Buies Creek -Coats Water and Sewer District of Harnett County this 18th day of December, 1989. Buies Creek -Coats Water and SewerQ District of Harnett County Y L16YU QJ Stewart, Chairman, Harnett County Board of Commissioners, sitting as the governing body of the Buies Creek -Coats Water and Sewer District of Harnett County AT T: W Vanessa W. Young,/JClerW to the Board and of the 4§uiea Creek - Coats Water and Sewer District of Harnett County Executed by the County of Harnett, this 18th day of December, 1989. ATTEST: Vanessa W. Young, Jerk of the Board NORTH CAROLINA HARNETT COUNTY COOe UNNTY OF H�7AJRNE /TTT /1 BY L1 yd . Stewart, Chairman Harnett County Board of Commissioners ACKNOWLEDGMENT 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, 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, 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 18th day of December, 1989. Kow �Cnw,w�d/lA '1 ary Public �o�.m, ■,nw My Commission Expires: 7 -22 -92 e'F7' NOIARY 3 ax♦ *m y_ PUBLIC IMI ® �I DOCUMENT NO. 4 i RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT WITH THE COUNTY OF.HARNETT REGARDING THE CAPE FEAR REGIONAL WASTEWATER SYSTEM WHEREAS, the Harnett .County .Board of Commissioners, sitting as the governing body of the Buies Creek - Coats Water and Sewer District of Harnett County, (hereinafter the "Board ") has reviewed the Agreement between the Buies Creek - Coats Water and Sewer District of Harnett County and the County of Harnett, a copy of which is attached hereto as Exhibit "A "; and WHEREAS, it is the desire of the Board that the Buies Creek - Coats Water and Sewer District of Harnett County enter into said Agreement as provided. NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners, sitting as the governing body of the Buies Creek - Coats Water. and Sewer District of Harnett County, that: 1. The Buies Creek - Coats Water and Sewer District of Harnett County shall and is hereby authorized to enter into the Agreement between said District and the County of Harnett, a copy of which is attached hereto as .Exhibit erA" 2. The appropriate officers of the District are hereby directed to execute the originals of said Agreement. Duly adopted this 18th day of December, 1989 upon motion made by Commissioner Hudson — , seconded by Commissioner Smith , and adopted by the following vote: Ayes 4 1 Noes 0 Abstained 0 Absent 1 Buies Creek - Coats Water and Sewer District of Harnett County By: - l j .d L yd G. Stewart, Chairman Harnett .County Board of Commissioners, sitting as the governing body of the Buies Creek - Coats Water and Sewer District of Harnett County Attest; Vanessa W. Young, qyerk t the Board and of the Buies Creek Water and Sewer District of Harnett County