HomeMy WebLinkAbout012125 Special Session - Northwest Water and Sewer DistrictHARNETT COUNTY BOARD OF COMMISSIONERS
Special Session Minutes
January 21, 2025
The Harnett County Board of Commissioners sitting as the governing body of the Northwest Water
and Sewer District met in special session on Tuesday, January 21, 2025 at 6:00 pm, in the
Commissioners Meeting Room, Harnett County Resource Center and Library, 455 McKinney
Parkway, Lillington, North Carolina.
Members present: Matthew B. Nicol, Chairman
William Morris, Vice Chairman
Barbara McKoy, Commissioner
W. Brooks Matthews, Commissioner
Duncan "Eddie" Jaggers, Commissioner
Staff present: Brent Trout, County Manager
Dwight Snow, County Attorney
Kimberly Honeycutt, Finance Officer
Melissa Capps, Clerk
Chairman Nicol called the meeting to order at 6:54 pm.
Christopher Appel, Senior Staff Attorney, reviewed a request to consider approval of the Utility
Infrastructure and Service Interlocal Agreement with between Harnett County, Northwest Water
and Sewer District of Harnett County, and the Town of Fuquay-Varina. Commissioner Jaggers
made a motion to approve the Utility Infrastructure and Service Interlocal Agreement with
between Harnett County, Northwest Water and Sewer District of Harnett County, and the Town
of Fuquay-Varina. The motion was seconded by Commissioner Matthews. The motion carried
unanimously. (Attachment 1)
Vice Chairman Morris made a motion to adjourn at 6:55 pm. The motion was seconded by
Commissioner Jaggers and carried unanimously.
Matthew B. Nicol, Chairman QMelissa D. Capps, Neri
Harnett County Board of Commissioners sitting as
Northwest Water and Sewer District
January 21, 2025 Special Session Minutes
Page 1 of 1
UTILITY INFRASTRUCTURE AND
SERVICE INTERLOCAL AGREEMENT
THIS UTILITY INFRASTRUCTURE AN SERVICE INTERLOCAL AGREEMENT
(hereinafter the "Agreement") is dated this the � day of �� 2025, by and between
COUNTY OF HARNETT, a political subdivision and body politic of tlr State of North Carolina
(hereinafter the "County"), the NORTHWEST WATER AND SEWER DISTRICT OF
HARNETT COUNTY, a county water and sewer district organized under the laws of the State of
North Carolina (hereinafter the "District") and the TOWN OF FUQUAY-VARINA, a municipal
corporation of the State of North Carolina (hereinafter the "Town");
WITNESSETH:
WHEREAS, the District owns a public water distribution system within the Town's
urban service area, an area that was agreed upon and approved by the Town and Wake County,
adjacent to the Town and its extraterritorial jurisdiction at that time; and
WHEREAS, the County, through its Department of Public Utilities, manages and operates
the water distribution system of the District; and
WHEREAS, the parties entered into that certain Annexation Agreement Contract and
Agreement dated June 18, 2003, and that First Amendment to Annexation Agreement Contract
and Agreement dated October 8, 2007, said agreements being incorporated herein by reference
(collectively the "Annexation Agreement"); and
WHEREAS, the Annexation Agreement provided terms and conditions for future
annexation of the District's water distribution system located with the Town's urban service area;
and
WHEREAS, the Town has experienced rapid growth and development witliitn its urban
service area and is desirous of purchasing the portion of the District's water distribution system
located within the Town's urban service area (hereinafter the "Conveyed Infrastructure") and in
accordance with the Annexation Agreement; and
WHEREAS, N.C.G.S. § 160A-274 expressly authorizes the District to convey its interests
in real and personal property to the Town "upon such terms and conditions as it deems wise [and)
with or without consideration...;" and
WHEREAS, North Carolina General Statutes 160A, Article 20, Interlocal Cooperation,
authorizes and empowers any units of local government to enter into interlocal agreements for the
ownership, collstr action, operation, maintenance, management, and financing of all or portions of
water systems within or outside the corporate limits of those units of local government.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements hereinafter contained, the parties hereto agree as follows;
PURCHASED ASSETS DESCRIPTION
The Conveyed Infrastructure shall include, without limitation, all water mains, water
services, meter assemblies, valves, fire hydrants, and other appurtenances required to provide
water service to existing and future water customers located within the Town's urban service area
and more particularly described in Exhibit A, attached hereto and incorporated herein by
reference. The Conveyed Infrastructure shall not include the excluded assets more particularly
described in Exhibit B, attached hereto and incorporated herein by reference (hereinafter the
"Excluded Assets").
2. CONSIDERATION
The Town shall pay to County, on behalf of the District, the amount of Two Million Seven
Hundred Ninety -Five Thousand Three Hundred Ninety -Five and No/100 Dollars ($2,795,395.00)
on or within thirty (30) days of the Transfer Date as set forth herein.
3. TRANSFER OF INFRASTRUCTURE
The District agrees to transfer to the Town the Conveyed Infrastructure as described above
no later than that date that is sixty (60) days after the final completion of the System
Improvements, defined herein, by the Town (the "Transfer Date"). System Improvements are
anticipated to be completed no later than the end of January 2027. The transfer of the Conveyed
Infrastructure shall be by execution of deed and dedication documents prepared by the Town
Attorney and executed by the appropriate District and County representatives, in addition to any
other documentation, agreements, or bills of sale necessary to complete the transfer. Upon
execution of the deed and dedication documents, the Town shall own, operate, and maintain the
Conveyed Infrastructure. The current County water customers and future water customers
utilizing the Conveyed Infrastructure will become customers of the Town. The Town shall assume
billing for the Conveyed Infrastructure within thirty (30) days of the Transfer Date.
On the Transfer Date, at a time and place mutually acceptable to the parties, die District
shall convey to the Town, free and clear of liens and encumbrances, the Conveyed Infrastructure
by delivering Warranty Deeds for the District's easements and an Assignment and Bill of Sale for
the District's personal property including, inter alia, die Conveyed Infasttucture in substantially
the same format as Exhibit C, attached hereto and incorporated herein by reference. The County
agrees to execute any North Carolina Department of Environmental Quality forms or applications
required to transfer or assign any necessary permits for the operation and maintenance of the
Conveyed Infrastructure to the Town, if any.
On the Transfer Date the Northwest Harnett Water District shall introduce a resolution to
relocate the Northwest Harnett Water District boundary along the Wake and Harnett County line.
The County shall continue to serve customers connected to the Excluded Assets, including any
new customers that may desire to connect to the Excluded Assets.
4. EASEMENTS AND RIGHTS -OF -WAY
The District agrees to transfer all easements, rights -of -way, and utility encroachments
associated with the Conveyed Infrastructure, whether conveyed from individuals, business
entities, developers, homeowners' associations, builders, contractors and/or other individuals or
entities, to the District, including, without limitation, those recorded in the Wake County Register
of Deeds and listing the County or District as Grantee.
5. SYSTEM IMPROVEMENTS
The Town agrees to make such improvements as required to integrate the Conveyed
Infrastructure into the overall Town water system. The Town will be responsible for the cost of
the improvements, maintenance, and any necessary expansions to the Conveyed Infrastructure to
accommodate planned growth and development to serve present and future needs. The system
improvements required for the conveyance of the Conveyed Infrastructure and integration with
the Town's existing water system are described in Exhibit D, attached hereto and incorporated
herein by reference. Upon installation of the Itron ERTS communication module on the conveyed
water meters, the Town shall return to the County all uninstalled meter transceiver units (hMs).
6. SYSTEM DISCONNECTS
The Town has identified specific disconnection points to separate the Town's water system
from the District's water system. For these disconnection points, the Town will install an insertion
valve at the disconnection point and hydrants on both sides of the insertion valve for future blowoff
and maintenance of the respective water systems. The identified disconnection points are set out
on Exhibit E, attached hereto and incorporated herein by reference.
7. RECORDS TRANSFER
The County shall transfer to the Town all available reproducible and electronic copies of
any and all records, data, information, and models arising from the construction, operation, and
maintenance of the Conveyed Infrastructure and any other related activity, including, without
limitation, projects in progress and the following:
1) Billing, collection, and payment records on all present customers coruiected to the
Conveyed Infrastructure;
2) An accurate tabulation or listing of all actual service locations connected to the Conveyed
Infrastructure to be transfetTed to the Town from the County, to include, without limitation:
a. Address - Number and Street;
b, Account Name (if active);
c. Billing Address for Each Account Number;
d. Account Numbers and all meter reading books and the history of all accounts for the
past twelve (12) months; and
e. Meter Location Description.
3) Receipts, accounts, and other records of deposits made by all present and past customers
connected to the Conveyed Infrastructure;
4) Copies of all easements related to the Conveyed Infrastructure;
5) Copies of all encroaclnnent agreements related to the Conveyed Infrastructure;
6) Record drawings for the Conveyed Infrastructure;
7) Any other information, data, and accords reasonably related to die Conveyed
Infrastructure.
The County agrees that prior to the Transfer Date, and in no event later than thirty (30) days
thereafter, the County shall submit to the Town such records pertaining to the Conveyed
Infrastructure. Prior to the Transfer Date, the County Manager and Town Manager or their
designees, shall determine mutually satisfactory administrative details for the transfer of the
above -referenced records.
8. CUSTOMER TRANSFER
As of die Transfer Date, all customers and users of the Conveyed Infrastructure shall
become subject to all rules, regulations, and ordinances of die Town as the same apply to all users
and customers of the Conveyed Infrastructure of the Town, and as same are now or may hereafter
be amended. Such rules, regulations, and ordinances and schedule of rates, fees, charges, and
penalties shall constitute a part of the Agreement between the Town and any customer or user of
the subject Conveyed Infrastructure and any extensions thereof for the provision of water- service.
A team comprised of County and Town staff shall develop a seamless transfer of customer
accounts at the Transfer Date in order to provide continuity of account activity after the
conveyance. Effective immediately following the Transfer Date, the County shall transfer
customer deposits to the Town.
9. WATER RATES
The water customers in the Town will pay the same water rates and fees as currently in
effect for similarly situated customers of the Town. The County agrees to transfer all meter
deposits held on behalf of their customers to the Town.
10. NO ORAL MODIFICATIONS
Any change or modification of this Agreement must be in writing signed by both parties.
11. TERM AND TERMINATION OF AGREEMENT
This Agreement shall be perpetual. The Town, die District, and the County hereby agree
that such perpetual duration is reasonable and necessary in light of the purposes of this Agreement.
If for any reason a court of competent jurisdiction rules in a final decision that may not be appealed
that a perpetual term to this Agreement is unlawful, then this Agreement shall have a tenn of forty
(40) years. If the term of this Agreement is so limited to forty (40) years, the expiration of the term
shall only affect the agreements hereunder with respect to events and performances that occur after
the expiration date of such term and shall not affect the existence or validity of any transfer,
conveyance, undertaking, liability, or other action or right that occurred or arose prior to the
expiration date.
12. DISTRICT REPRESENTATIONS AND WARRANTIES
The District hereby represents and warrants as follows:
1) Except as otherwise disclosed herein, the District has good and marketable title, free
and clear of liens and encumbrances, to the real and personal property being conveyed
to the Town, including all permits, associated with every aspect of the Conveyed
Infrastructure.
2) The Conveyed Infrastructure is in good condition and repair, normal wear and tear
excepted, and is in compliance with all laws, rules, and regulations of applicable
governmental units.
3) This Agreement, and all other documents and instruments related hereto and/or
required hereby, has/have been duly authorized, executed, and delivered by the District
and constitute valid and binding obligations by the District enforceable in accordance
with its terms and conditions subject to bankruptcy, insolvency, or other laws affecting
the enforcement of creditor's rights.
4) The District's execution and delivery of this Agreement and compliance with its terms
and conditions will not conflict with or constitute a breach or violation of, or a default
under any agreements to which the District is a party, any applicable law, rule, or
regulation of any governmental unit or agency thereof, any applicable judgment or
decree of any court or other governmental agency or body, or the provisions of any
permits held by the District for the ownership, operation, and maintenance of the
Conveyed Infrastructure.
5) The execution and delivery of this Agreement and the conveyance of the Conveyed
Infrastructure to the Town do not require the approval of any regulatory body,
governmental unit or agency, or any other persons/entities whatsoever.
6) All easements held by the District related to the Conveyed Infrastructure are assignable
by the District without the consent of third parties.
13. COUNTY REPRESENTATIONS AND WARRANTIES
The County hereby represents and warrants as follows:
1) The Conveyed Infastructure is in good condition and repair, normal wear and tear
excepted, and is in compliance with all laws, rules, and regulations of applicable
governmental units.
2) This Agreement, and all other documents and instruments related hereto and/or
required hereby, has/have been duly authorized, executed, and delivered by the County
and constitute valid and binding obligations by the County enforceable in accordance
with its terms and conditions subject to bankruptcy, insolvency, or other laws affecting
the enforcement of creditor's rights.
3) The County's execution and delivery of this Agreement and compliance with its terms
and conditions will not conflict with or constitute a breach or violation of, or a default
under any agreements to which the County is a party, any applicable law, rule, or
regulation of any governmental unit or agency thereof, any applicable judgment or
decree of any court or other governmental agency or body, or the provisions of any
permits held by the County for the operation, and maintenance of the Conveyed
Infrastructure.
14. TOWN REPRESENTATIONS AND WARRANTIES
The Town hereby represents and warrants as follows:
1) This Agreement, and all other documents and instruments related or required hereby,
have been duly authorized, executed, and delivered by the Town and constitute valid,
binding, and enforceable obligations by the Town.
2) The Town's execution and delivery of this Agreement and compliance with its
provisions will not conflict with or constitute a breach or violation of, or a default
under any agreements to which the Town is a party, any applicable law, rule, or
regulation of any governmental unit or agency thereof, or any applicable judgment or
decree of any court or other govenimental agency or body.
3) The Town will perform the services customarily performed by water utility systems
with respect to the acquired systems and customers, such as:
a. Read all meters of, send all bills to, and collect all payments from the customers.
b. Administer the provision of water service to new customers and coordinate the
construction of related infrastructure by developers intending to connect to the
Conveyed Infrastructure and future infrastructure within the Town's urban service
area.
Maintain, repair, and improve the Conveyed Infrastructure in a timely manner and
operate and manage the Conveyed Infrastructure in a manner consistent with good
business and operating practices for comparable facilities and in fiull compliance
with all issued permits, operational requirements, industry standards, and the
applicable laws, rules, and regulations of regulatory bodies, governmental units, or
agencies thereof.
15. COOPERATION OF THE PARTIES
The Town, District, and the County agree to cooperate, frilly, effectively, and efficiently
with each other to accomplish the intent and purposes of this Agreement, execute all
supplementary documents necessary to enforce its terms, and to take all additional actions deemed
necessary and appropriate so as to give full force and effect to the terms, conditions, and intent of
this Agreement. No party shall unreasonably withhold or delay providing such cooperation. The
parties further agree to provide to each other, if requested, all plans, as built drawings, financial
information, and all other information, documents, materials, and other things in their possession
or control associated with the Conveyed Infrastructure, and the performance of the terms and
conditions set forth herein.
16. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the parties and supersedes
all prior and independent agreements between the parties covering the subject matter hereof. This
Agreement does not affect or modify any existing water purchase agreements, capacity
agreements, or sewer agreements between the patties, which remain in full force and effect.
17. SPECIFIC PERFORMANCE IN EVENT OF DEFAULT
The parties acknowledge that monetary damages would not fully compensate either party
in the event of any breach or default of this Agreement. The parties therefore agree that in the
event of a breach or default by either party, the other patty shall, in addition to seeking damages,
be entitled to seek and obtain the specific performance of the defaulting party's obligations
hereunder.
18. AUTHORIZATION
Each party certifies that all appropriate steps to legally enter into this Agreement have been taken,
that the matter has been approved by the appropriate legislative body, and that the terms of this
Agreement are understood. Moreover, each party certifies that all laws, rules, and regulations as
well as any local governmental rules were followed with regard to acceptance of this Agreement
and that this Agreement meets all standards for governmental agreements.
19. SECTION HEADINGS
The section headings in this Agreement are for convenience and ease of reference only.
Such headings are not part of this Agreement and are not to be used in interpreting its provisions.
20. GOVERNING LAW
This Agreement shall be governed by and interpreted in accordance with the law of the
State of North Carolina.
21. SEVERABILITY
It is hereby the declared intention of the Town, the District, and the County that the
paragraphs, sections, sentences, clauses, and phrases of this Agreement are severable. If one or
more paragraphs, sections, sentences, clauses, or phrases shall be declared void, invalid, or
otherwise unenforceable for any reason by the valid, final judgment, or decree of any court of
competent jurisdiction, such judgment or decree shall not affect the remaining provisions of this
Agreement.
22. WARRANTIES
The County, the District, and the Town represent and warrant that each has full power and
authority to enter into and perform any and all provisions of this Agreement between the County,
the District and the Town.
23. NOTICES
All communications and notices hereunder shall be in writing and shall be (i) delivered by
hand, (ii) sent prepaid by overnight delivery, or (iii) sent by United States Mail, certified, postage
prepaid, return receipt requested, as the addresses designated below, or to such other addressed as
either party may hereafter designate in writing from time to time:
To the Town:
Town of Fuquay-Varuia
Attn: Adam G. Mitchell, Town Manager
134 North Main Street
Fuquay-Varina, NC 27526
With a copy to:
James S. Adcock III
Town Attorney
135 North Main Street
Fuquay-Varina, NC 27526
To the County or District:
Harnett County
Attn: Brent Trout, County Manager
PO Box 759
Lillington, NC 27546
With a copy to:
Harnett County
Attn: Senior Staff Attorney
PO Box 238
Lillington, NC 27546
24, SIGNATURES
This Agreement, together with any amendments or modifications, may be executed in one
or more counterparts, each of which shall be deemed an original and all of which shall be
considered one and the same agreement.
8
IN WITNESS WHEREOF, the parties hereto, acting by and through their duly authorized
representatives pursuant to the resolutions of their respective governing bodies, have caused this
Agreement to be executed as of the day and year first above written.
AO-
t.1GR(�gy/�
ATTEST: TOWN OF FUQUAY VARINA
BY. By:
Name: Teresa Wilder, Town dash more,,.'`' Name: Adam G. Mitchell
Title: Town Manager
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NORTH CAROLINA
WAKE COUNTY
I certify that Teresa Wilder, Town Clerk of the Town of Fuquay Varina, personally appeared
before me this day and certified to me under oath or by affirmation that she is not a named party to
the foregoing document, has no interest in the transaction, signed the foregoing document as a
subscribing witness, and either (i) witnessed Adam G. Mitchell sign the foregoing document, or (ii)
witnessed the principal acknowledge the principal's signature on the ah•eady-signed document.
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My commission expires: mh
This instrument has been pre -audited in the manner required by the Local Government Budget and
Fi cr Cor ��
rca 7 _ _ 12/19/2024
Town Finance Officer Date
Agpt V ZiAlt®rm:
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James S. Adcock III, Town Attorney
ATTEST:
By:
Name: t;� Ccux�S Clerk
NORTH CAROLINA
HARNETT COUNTY
HARNETT COUNTY
By:
Name: Brent Trout
Title: County Manager
I certify that M& , Clerk of Harnett County, personally
appeared before me this day and cerfffieb to me under oath - by affirmation that she is not a named
party to the foregoing document, has no interest in the transaction, signed the foregoing document
as a subscribing witness, and either (i) witnessed Brent Trout sign the foregoing document, or (ii)
witnessed the principal acknowledge the principal's signature on the already -signed document.
Today's Date 4" V 2025.
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[Notary's printed name as narneipears on seal]
My commission expires: 9 . a3-2x • olOc�
Th' ins meat has been pre -audited in the mariner required by the Local Government Budget and
Fis Cohtr Ac I 29. ?-0-25
County Finance Off er Date
Approved as to form:
ris op rer Appe , Senio ffAttorney
ATTEST:
By:
Name:
NORTH CAROLINA
HARNETT COUNTY
NORTHWEST WATER AND SEWER
DISTRICT OF HARNETT COUNTY
By:
Name: M I 0 1
Title: Chairman
I certify that , C llerk of NORTHWEST WATER AND
SEWER DISTRICT OF HARNETT COUNTY, persoftfilly appeared before me this day and
certified to me under oath or by affirmation that she is not a named party to the foregoing document,
has no interest in the transaction, signed the foregoing document as a subscribing witness, and either
(i) witnessed MQ}>�l _ _, sign the foregoing document, or (ii) witnessed
the principal acknowledge the principal's signature on the already -signed document.
Today's Date JClv)uV N 2� 2025•
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otae 's signature as name appears on se-
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[Notary's printed name as name ars on sea])
My commission expires: Cl • ,-1Q •2P,-)r9
[Affix Notary Seal in Space Above]
EXHIBIT A
Exhibit A: Infrastructure Conveyance
Town of Fuquay-Varina Public Utilities Department
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1. Existing 36-inch transmission waterline along Piney Grove Wilbon Road to 2411 Fleming
Road
2. 2411 Fleming Road-8.89 acres PIN 0646859007 containing piping, ground storage tank and
booster pump station
3. Existing 4-inch dead-end waterline on OC Hester Road east of the railroad tracks
4. Existing waterline on Tutor Stephens Road -Holly Springs Service Area
5. Existing 6-inch waterline on Purfoy Road Meter Transceiver Units (MXUs) connected to
the Sensus Iperl Water Meters that are to be conveyed.
Prepared by and return to:
James S. Adcock III, Town Attorney
135 North Main Street
Fuquay-Vagina, NC 27526
STATE OF NORTH CAROLINA
ASSIGNMENT AND BILL OF SALE
COIUNTY OF WAKE
THIS ASSIGNMENT AND BILL OF SALE is made this
by and between the TOWN OF FUQUAY-VARINA, a municipal corporation of the State of North
Carolina (`Buyer"), and NORTHWEST WATER AND SEWER DISTRICT OF HARNETT
COUNTY, a county water and sewer district organized under the laws of the State of North
Carolina ("Seller").
RECITALS:
This Assignment and Bill of Sale is given pursuant to that certain UTILITY
INFRASTRUCTURE AND SERVICE INTERLOCAL AGREEMENT entered into between the
parties hereto dated _ _ _. _ _, (the "Conveyance Agreement"). The
parties agree that the representations and warranties of each party contained in the Conveyance
Agreement shall survive the execution and delivery of this instrument. Capitalized terms used but
not otherwise defined herein shall have the respective meanings ascribed to them in the Conveyance
Agreement.
Seller, for and in consideration of the sum of Two Million, Seven Hundred Ninety -Five
Thousand, Three Hundred Ninety -Five and No/I00 Dollars ($2,795,395.00) and other good and
valuable consideration, to the County of Harnett, for and on behalf of the Seller, in hand paid, the
receipt and sufficiency of which is hereby acknowledged, has bargained, sold and assigned, and by
these presents does bargain, sell, assign and convey unto the Buyer, its successors and assigns,
certain personal property, infrastructure, facilities, structures, easements, other property rights,
liabilities, and all other materials and things associated with or required for the ownership,
operation, and maintenance of the Conveyed Infrashvcture (collectively the "Property"), as more
particularly described on Attachment A attached hereto and incorporated herein by reference.
TO HAVE AND TO HOLD the Property, including the appurtenances thereof, unto the
Buyer and its successors and assigns in fee simple forever.
The designation of Buyer and Seller as used herein sliall include said parties, their heirs,
successors and assigns, and shall include singular, plural, masculine, feminine or neuter as required
by context.
Seller represents and warrants to Buyer that it is seized of the Property in fee simple and
has the right to convey the same in fee simple, that the same is free and clear of all encumbrances
whatsoever, that it will warrant and defend the title thereto against the lawful claims of all persons
whatsoever, and that it is not a party to any contracts to provide water service to anyone except
those listed in the Conveyance Agreement.
IN TESTIMONY WHEREOF, Seller has caused this instrument to be executed by its duly
authorized officer and its seal to be hereto affixed as of the date first above written.
ATTEST;
County Clerk
[SEAL]
STATE OF NORTH CAROLINA
COUNTY OF HARNETT
NORTHWEST WATER AND SEWER
DISTRICT OF HARNETT COUNTY
By:_
I, a Notary Public of the County and State aforesaid, do hereby certify that
personally came before me this day and acknowledged that
she is the County Clerk for Harnett County, a body politic, and that by authority duly given and as
the act of the municipal body politic, the foregoing instrument was signed in its name by its
sealed with its county seal, and attested by herself as its County Clerk.
WITNESS my hand and official seal, this day of ___, 2025.
Notary Public
My Convnission Expires:
(SEAL)
EXHIBIT D
ry
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Exhibit E: Disconnect Points
Town of Fuquay-Vadna Public Utilities Department
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