HomeMy WebLinkAbout04131992
590
HARNETT COUNTY BOARD OF COMMISSIONERS SPECIAL MEETING, APRIL 13, 1992
LETTER OF CONDITIONS
AND OTHER DOCUMENTS
RE: SOUTHEAST W & S
CONSTRUCTION PROJECT
ADJOURNMENT
The Harnett County Board of Commissioners met in special session on I
Monday, April 13, 1992, in the Commissioners Meeting Room, County
Office Building, Lillington, North Carolina, with the following
mem~ers present: Beatrice Bailey Hill, Walt Titchener, and Chairman
Lloyd G. S~ewart presiding. Commissioners Mack Reid Hudson and Bill
Shaw were absent. Others present were Dallas H. pope, County Manager;
Vanessa W. Young, Finance Officer and Clerk to the Board; and Kay S.
Blanchard, Recording Secretary.
Chairman Stewart called the meeting to order at 12:00 noon and stated
that the Board would consider certain matters sitting in its capacity
as the governing body of the Southeast Water and Sewer District of
Harnett County.
John M. Phelps, Public Utilities Attorney, briefed the Board on the
purpose of the special meeting.
Larry Whitehurst, Farmers Home Administration, presented for the
Board's consideration an amended Letter of Conditions and a resolution
authorizing execution of related documents concerning funding for a
water facilities construction project in the Southeast Water and Sewer
District. Commissioner Hill moved for adoption of the resolution.
Commissioner Titchener seconded the motion and it passed with a
unanimous vote. The Letter of Conditions, resolution, and related
documents aIe copied in full at the end of these minutes as Attachment
1
+,
Co~~issioner Hil~ moved that those documents previously executed by
the Sout~east Wa~er and Sewer District regarding its FmHA loan and
grant which shall be replaced pursuant to the Board's action today
shall be and hereby are rescinded. Commissioner Titchener seconded
the motion and it passed with a unanimous vote.
Chairman Stewart closed the meeting concerning matters sitting as the
governing body of Southeast Water and Sewer District.
Commissioner Titchener moved for adoption of the following budget
amendment for Public Buildings:
Code 10-5000-002 Salaries & Wages
10-5000-005 FICA Tax Expense
10-5000-007 Retirement Expense
Revenue: 10-3990-000 Fund Balance Appropriated
Commissioner Hill seconded the motion and it passed
vote.
3,843.
294.
193.
4,330.
with a
increase
increase
increase
increase
unanimous
Commissioner Hill moved for adoption of
for Social Services:
Code 10-7700-002
10-7700-005
10-7700-007
Revenue: 10-3670-004
Commissioner Titchener
unanimous vote.
the following budget amendment
Salaries & Wages
FICA Tax Expense
Re~irement Expense
Hospital Refund
seconded the motion
and it
228. increase
18. increase
12. increase
258. increase
passed with a
There being no further business, the Harnett County Board of
Commissioners special meeting, April 13, 1992, duly adjourned at
12:25 p.m.
~
Stewart, Chairman
!
~J~j.
Vanessa W. Young, Clerk
Sec.
591
ATTACHMENT 1.
I
FORM APPROVED
OMB NO. 0575-0015
UNITED STATES DEPARTMENT OF AGRICULTURE
FARMERS HOME ADMINISTRATION
Form FmHA 1942-46
(Rev. 9-89)
LETTER OF INTENT TO MEET CONDITIONS
Date
TO: Farmers Home Administration
United States Department of Agriculture
P. O. Box 309
Nashville, NC 27856
(County Office Address)
We have reviewed and understand the conditions set forth in-your letter dated
2-15-91
and amended 3-16-92
It is our intent to meet all of them not later than
6-15-92
Southeast Water and Sewer District of
Harnett County
(Name of Association)
By~);:J ~
Chairman
(Title)
ATTEST:
~ 'W, ~~~
Clerk
Public reporting burden for this collection of information is estimated to allerage 1 hour per response, including the time for relliewing in.
structions, searching existing data sources, gathering and maintaining the data needed, and completing and relliewing the collection of in.
formation. ~end comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for
reducinll thIs burden, to Department of Agriculture, Ctearance Officer. OlRM, Room 404.W, Washinllton, D.C. 20250; and to the Office of
Management and BUdllet, Paperwork Reduction ProJect (OMB No. 057:>-0015), Washington, D.C.20503.
FmHA 1942-46 (Rev. 9-89)
592
I
~
,"
lk1 i lid Statu
Departa.nt of
Agriculture
Fa,... rl
Ho..
A"iniltr.tion
4001 Car,. Ore..
Suitt B
Ral.igh, North Carolina 27610
February 15, 1991
I
Honorab-I eLl oyd
Southeast Water
PO Box 759
Li II ington, NC
Stewart, Chairman
and Sewer District
27546
Dear Mr. Stewart:
This letter establ ishes conditions which must be understood
and agreed to by you before further consideration may be
given to your app: ication0
This letter is not to
representation as to
may be completed on
$1,935,000.00 and
$1,468,000.00.
be considered as
the avai labi I itY
the basis of a
a development
loan approval or as a
of funds. The docket
loan not to exceed
grant not to exceed
If FmHA makes the loan, you may make a written reQuest that
the interest rate be the lower of the rate in effect at the
time of loan approval or the time of loan closinQ. If you
do not reQuest the lower of the two interest--rates;--the
interest rate charQed wi I I be the rate in effect at the time
of loan approval. The loan wi I I be considered approved on
the date a signed copy of form FmHA 1940-1, II Request for
Obi igation of Funds," is mai led to you. If you want the
lower of the two rates. your written reQuest should be
submitted to FmHA as sODn as practical. In order to avoid
po s 5 i b I e'd e I a v 5 i n loa n c I 0 sin Q s u c h are Que 5 t s h 0 u I d
o rd i nar i I y be subm I tted at I east 30 ca I endar days bef ore
loan closlnc.
Any changes in project costs, source of funds, 5cope of
services or any other significant changes in the project or
appl icant must be reported to and approved by FmHA by
written amendment to this letter. Any changes not approved
by FmHA sha J I be cause for d i scont i nu i ng process i ng of the
appl ication.
Please complete and return
if you desire that further
application.
the attached Form FmHA 1942-46,
consideration be given your
REPAYMENT SCHEDULE
The insured loan wi I I be scheduled for repayment over a
period not exceeding 40 years. Each installment
wi I I be due June 1 with the first installment due the
first June 1 following the date of loan closing or
del ivery of the bond. The first two installments wi I I
be interest only installments.
INTERIM FINANCING
The District wi I I obtain temporary construction
financing in accordance with FmHA Instruction
1942.17(n} CZ}. The DistrIct wi II contact the North
Carol ina Local Government Commissivn and arrange to
obtain interim credit through the sale of Bond
Anticipation Notes.
I
SECURITY
Security for the loan wi II consist of a General
Obi igation Water bond authorized and prepared in
accordance with FmHA Instruction 194Z-A. Farmers Home
Administration wi I I negotiate the purchase of the bond
with the District and the North Carol ina Local
Government Commission. The Commission reserves the
right to require a publ ic offering of the bond.
593
ORGANIZATION
I
The District must p~ovide the necessary certification,-
comments, and recommendations concerning its
organization and authority to issue bonds which should
include the following:
a. Compliance with special laws and regulations.
b. State Pollution Control on Environmental Protection
Agency Standards.
c. Consistency with other development plans.
d. State agency regulating water rights.
e. National historic preservation.
f. Civi I Rights Act of 1964.
g. Architectural Barriers of 1968.
(Refer to FmHA Instruction 1942.17(k) )
h. Title IX of the Education Amendments of 1972.
i. Section 504 of the Rehabi I itation Act of 1973.
J. Age Discrimination Act of 1975.
ACCOUNTING. AUDITS. AND REPORTS
Accounting and auditing wi I I be establ ished and
maintained in accordance with the requirements of North
Carol ina General Statutes. The audit report is to be
in accordance with OMB Circular A-128. The District is
to provide FmHA a copy of their Audit Contract. A copy
of the annual audit report wi I I be provided FmHA to
accordance with FmHA Instruction 1942.17(q).
INSURANCE AND BONDING
Insurance and bonding must be obtained as required by
North Carol ina State Statues. The District wi I I
furn1sh a certificate concerning the adequacy of
insurance and bonding.
The District wi II provide fidel ity bond coverage for
the positions of officials entrusted with the receipt
and disbursement of its funds and the custody of
valuable property. The amount of the bond wi I I be at
least equal to the total annual DEBT SERVICE
REQUIREMENTS for the FmHA loan(s). The District may
make a written request to provide less coverage, along
with justification, to FmHA for their review and
decision on the Teque~t.
The publ ic .1 iabi I ity and property damage insurance
requirement should be discussed by the District and
their attorney and the amounts establ ished accordingly.
Fire and extended coverage should be in an amount equal
to the replacement value of al I above ground structures
including District owned equipment and machinery housed
therein.
I
The District shal I provide FmHA a" Certification of
Insurance Coverage" prior to loan closing and as of
July 1st of each year thereafter.
FINAL PLANS AND CONSTRUCTION CONTRACT DOCUMENTS
Final plans must conform essentially with the project
described in the Prel iminary Engineering Report on
which the project is funded. Should the project be
changed which wi I I result in increasing the proJect
cost or operating budget, the FmHA must be notified and
a revised Prel iminary Engineering Report with the new
594
"
budget must be submitted. Any changes not approved by
FmHA shall be cause for discontinuing processing of the
appl ication.
The construction contract documents must be completed
in accordance with FmHA Instruction 1942-A, Subsection
1942.18. The District and their engineer" must
consider al I materials suitable for the project. The
engineer must specify all materials normally used.
Contracts must be awarde~ on the basis of the lowest
bid accept;t;!; material. IN ANY CASE WHERE THE
APPLICANT PROPOSES TO AWARD A CONTRACT (OR CONTRACTS)
TO A BIDDER OTHER THAN THE APPARENT LOW BIDDER, THE
APPLICANT 'MUST FIRST OBTAIN CONCURRENCE FROM THE FmHA
STATE DIRECTOR BEFORE TAKING ACTION TO AWARD THE
CONTRACT (OR CONTRACTS). FmHA reserves the riaht not
to con cur i n a n v . c' 0 n t r act w her e t his pol i c vis not
f 0 I lowed. Con cur r e nee by the F mHA S tat e Of f ice En gin e e r
must be obtained prior to negotiating with contraetors
subsequent to opening bids. FmHA contracts and bid
documents should be used for projects jointly funded
with other agencies.
I
LOAN RESOLUTION
The District must
Resolution, at a
Adoption of this
official minutes
Equal Opportunity
Agreement, are to
meeting.
formally adopt Form 1942-47, Loan
proper meeting of the governing body.
document should be made a part of the
of the Distriet. Forms FmHA 400-1,
Agreement, and FmHA 400-4, Assurance
be formally adopted at the same
OPERATING BUDGET
A Water system operating budget must be adopted by the
appl icant after approval by FmHA. A Water rate
schedule must be adopted which wi I I provide sufficient
revenue to meet the requirements of the operating
budgst.
RULES AND REGULATIONS
Water system rules and regulations must be submitted to
FmHA for approval prior to loan closing.
GRADUATION
The District will refinance the unpaid balance, In
whole or in part, of its debt upon the request of the
Government jf at any time it should appear to the
Government that the District i5 able to refinance it
notes/bonds by obtaining a loan for such purposes from
responsible cooperative or private sources at
reasonable rates and terms.
GRANT AGREEMENT
The District must adopt Form FmHA 1942-31, Association
Water and Sewer System Grant Agreement, at a proper
meeting of the governing body. Adoption of thi~-
document should be made a part of the official minutes
of the District. Attached i~ a copy of Form FmHA 1942-
31, Association Water or Sewer System Grant Agrement
for your review. You wi I I be required to execute a
completed form at the time of grant closing.
EXCESS FUNDS
1ft her e I s a s i g n. i" f i can t red u c t ion i n pro j e c t c 0 s t as
a result of re-design or bids received, the Di5trict'5
funding needs wi I I be re-assessed before loan closing
or start of construction, whichever occurs first.
Ob I i gated loan or g rant funds not needed to comp I ete
the proposed project wi II be deobl igated. Grant funds
are deobl igated first. -
I
DEBARMENT CERTIFICATION
The District is to certify that they are not debarred
or suspended for Federal Nonp~ocurement Programs by the
use of F~rm AD-1047, Certification Regarding Debarment,
Suspension and Other Responsibi I ity Matters - Primary
Covered Transa~tions. A/so Form AD-I048, Certification
r":9a.~di;'g L>e~ar,'Tlent.. Suspension, Ineligibility and
Vo/~ntarv Ex~;us:on - Lower Tier Covered Transactions,
is -Co be used by lower tier parties (bui Iders,
contractors, dealers, suppl iers, manufacturers, and
others) involved in transactions exceeding $25,000.00
595
DRUG-FREE WORKPLACE REQUIREME~TS <GRANTS)
I
The Drug-Free Workplace Act of 1988 <Publ ic Law 100-
690) was incorporated into the Federal Acquisition
Regulations by FAC 84-43 dated March 18, 1989. The
District wi II certify that they wi II provide a drug-
free workplace, are not involved with drugs and wil I
establ ish an educational program concerning drug abuse
for employees by executing Form AD-1049.
DEBT COLLECTION POLICIES
The District wi II acknowledge receipt of debt
collection pol icies by executing Form FmHA 1910-11,
"Appl ication Certificati ion, Federal Collection
Policies For Consumer or Commercial Debts" prior to
loan approva I.
DISTRICT'S CONTRIBUTION
The District is to deposit $50,000.00 in the
construction account prior to loan closing or the start
of construction, whichever occurs first. These funds
are considered to be expended first and are to be used
with other funds to complete the funding of the
proposed project.
CLOSING INSTRUCTIONS
The loan wi II be closed in accordance with instructions
issued by the Office of the General Counsel and
appl icable FmHA and State procedures.
"The District agrees 'that, in the event of deficiencies
in development, design, or construction of the project
or any part thereof, the District wi II take the
required administrative or legal action to secure
financial compensation from the engineer, contractor or
attorney as appropriate for any necessary cost to'
restore the project of defective part to a level of
service equal to that expected for normal design and/or
construction and legal services".
All appl icable items set out in Form FmHA 442-13,
Processing Checkl ist, Publ ic Body, apply to this
project and become a part of the Letter of Conditions.
Sincerely,
JACKIE E. MCLAMB
District Director
Enclosures
596
~:rr.'';'-'''l
rcrJt\
~i
uP i ttd States
lJeparUent .f
Agriculture
F araers
.
Adainistration
P. O. BOI ~
Nashville, NC 2
Telephone 459-4113
March 16, 1992
Honorable Lloyd Stewart, Chairman
Southeast Water and Sewer District
P. o. Box 759
Li I I ington, NC 27546
Dear Mr. Stewart:
We have received a letter dated March 11, 1992, from Mr. Rodney M.
Tart, Director of Harnett County Publ ic Uti I dies, requesting that
Farmers Home Administration make a redetermination of the grant and
loan that was originally awarded to the water and sewer district. The
reason for this redetermination is due to three areas that the
district planned to serve around the City of Dunn. These areas wi I I
no longer be served by the district due to the City of Dunn annexing
these areas. As a result of this, 120 users originally planned wi II
be lost affecting the feasibi I ity of the project as originally funded.
We have reviewed the revised Prel iminary Engineering Report, dated
March 1~92, as prepared by Marziano and Minier, P.A., and have
determined that a recalculation of loan and grant is necessary in
order to maintain a reasonable monthly average user cost. A
recalculation of the loan and grant based on 955 users reduces loan
fund needs from $1,935,000 to $1,482,000 and increases grant fund
needs from $1,468,00 to $1,635,000.
The original Letter of Conditions, dated February 15, 1991, along with
al I copies belonging to the engineer and attorney, is hereby amended
as follows:
Paragraph 2, line 4, delete the loan amount of $1,935,000 and insert,
$1,482,000.00
Paragraph 2, line 5, delete the period after $1,468,000, and add:
"and a subsequent grant of $167.000".
I n add it i on to the above, the fo I low i ng parag raphs are added to the
original Letter of Conditions dated February 15, 1991.
Deob I i Qat i on of Loan Funds
At the time of the $167,000 Grant approval $453,000.00 loan funds wi I I
be deobl igated as a result of the loan/grant recalculation based on
the loss of 120 users.
Certification
Prior to the approval of additional $167,000 grant funds the Southeast
Water and Sewer District and the City of Dunn must provide FmHA
evidence that the service areas have been resolved in accordance with
Mr. Rodney Tart's letter of March 11, 1992.
This amendment is not to be considered as grant approval, or as
rep resentat i on as to ava i lab i I i ty of funds. If the d j str i ct concurs
in this amendment, you should execute the attached Form FmHA 1942-46,
Letter of Intent to Meet Conditions, and one copy must be returned to
Farmers Home Administration, P. O. Box 309, Nashvi I Ie, NC 27856,
attention: Larry Whitehurst. If you have any questions, you should
contact Mr. Larry Whitehurst at 919-459-4113.
Sincerely,
I
ft/dIttt~ AJJ jgJ
;n/
Jackie E. McLamb
District Director
Attachments
597
USDA.F mHA
Form FmHA 1940.1
(Rev. 3-91)
REQUEST FOR OBLIGATION OF FUNDS
N~AC~~RKED (II
~J1)uOh40~ ...S.. FMI.
FISCAL YEAR
(1.2. or 3from Item 2)
STATE NAME
:;::: :::::::::::::::::::~:::::
....... .
9. VETERAN CODE
(See FM1)
10. CREDIT REPORT
11. DIRECT PAYMENT
12, TYPE OF PAYMENT
13. FEE INSPECTION
2
14. INTEREST CREDIT
15. COMMUNITY SIZE
2
16. DWELLING TYPE/USE OF FUNDS CODE
(See FMJ)
::::::))):::}}:)} .......... ............................/j':/:W}::/W/=///=/=//:: g9MtMtm:tm!:A.Q;~..t~mU#'jOOg))))):)) ..
17. TYPE OF ASSISTANCE 18. PURPOSE CODE 19. SOURCE OF FUNDS
...... ................-............ .
.. ........--.. ..
:;:::::::::::::::.:-:::.:-:-
20. TYPE OF ACTION
2
1
23. AMOUNT OF GRANT
22. AMOUNT OF LOAN
1 = Initial
2 = Subsequent
24. AMOUNT OF
IMMEDIATE ADVANCE
25. DATE OF APPROVAL
MQ DA VR
000 ~
)):::W::}:=))}//}/==W::::=:::::::=:::::=///ftm////:::r:::::}::}:)):::::jj:::@:::::=t:}:::::::::~~:.::$.i.f.ijgO~.~t:I,9I.llm::'i.@!j=))):}}=:}}:::::::=::))}}:::=})):,:))U:,:))::<,.""",'.""
28. INCOME CATAGORY CODES 29. LOW INCOME L1MIT- MAlt 30. ADJUSTED FAMILY INCOME
31. R.E. INSURANCE
32. R.E. TAXES
111 Yeer
33. R.E. TAXES
-2nd Yeer
1 = Farm Tract
2 = Non-Farm Tract
CERTIFICA TION APPROVAL
For All Farmer Programs
EM, OL, FO, and SW Loans
This loan is approved subject to the availability of funds. If this loan does not close for any reason within 90 days from
the date of approval on this document, the approval official will request updated eligibility information. The under. .
signed loan applicant agrees that the approval official wiII have 14 working days to review any updated information
prior to submitting this document for obligation of funds. If there have been significant changes that would affect
eligibility a decision as to eligibility and feasibility will be made within 30 days from the time the applicant provides the
necessary information.
If this is a loan approval for which a lien and/or title search is necessary, the undersigned applicant agrees that the
15.working-day loan closing requirement may be exceeded for the purposes of the applicant's legal representative
completing title work and completing loan closing.
41. COMMENTS AND REQUIREMENTS OF CERTIFYING OFFICIAL
I
Grant approved subject to the requirement of the Letter of Conditions, dated
2-15-91, and amended 3-16-92; FmHA Instructions, Form FmHA NC 442-13, Processing
Checklist, loan and grant closing instructions issued by the Office of The
General Counsel and availability of funds.
42. I HEREBY CERTIFY that I am unable to obtain sufficient credit elsewhere to finance my actual needs at reasonable
rates and terms, taking into consideration prevailing private and cooperative rates and terms in or near my community
for loans for similar purposes and periods of time. I agree to use, subject to and in accordance with regulations
applicable to the type of assistance indicated above, and request payment of the sum specified herein. 1 agree to report
to FmHA any material adverse changes, financial or otherwise, that occur prior to loan closing. I certify that no part
of said sum has been received. I have reviewed the loan approval requirements and comments associated with this loan
request and agree to comply with these provisions.
(For SFH & FP loans at eligible terms only) If this loan is approved. I elect the interest rate to be charged on my
FmH A loan to be the lower of the interest rate in effect at the time of loan approval or loan closing, If I check "NO",
the interest rate charged on my loan will be the rate specified in Item 26 of this form. _YES NO
598
WARNING:.
SECTION 1001 of Title 18, United Stetes Code provides: "Whoever, In eny metier within the Jurisdiction of eny
depertment or egency o. the United Stetes knowingly end willfully 'elsllles, conceels or covers up...e meterlel
'ect or mekee eny 'else, fictitious or freudulent stetements or representetlons, or mekes or uses eny 'else
writing or document knowing the seme to conteln eny 'else, fictitious or freudulent stetement or entry, shell be
fined not more then $10,000 or Imprisoned not more then 51.eel'8, or both." DISTRICT OF
SOUTHEAST WATER AND SEWER
HARNETT COUNTY
I
Date
,19_
(Signature of Applicant)
D~ -1/ .19~ By: ~ )J ~
ATTEST:'1 :-(,'1 ~~ C i an --
4flefflEREBY CERTI that all f the committee and administrative determinations and certifications required by
Farmers H orne Administration regulations prerequisite to providing assistance of the type indicated above have been
made and that evidence thereof is in the docket, and that all"requirements of pertinent regulations have been complied
with, I hereby approve the above-described assistance in the amount set forth above, and by this document, subject to
the availability of funds, the Government agrees to advance such amount. to the applicant for the purposes of and
subject to conditions prescribed by Farmers Home Administration regulations applicable to this type of assistance.
:3 0 u i:; h e a s [ ~,~ al: era n d Sewer D i s t r i c t
K e SOl U "1..: i (., n I'J 0 .
Be c. r~esolveJ:
that the Southeast Hater and '3e~....er Disb-jc-c of Harnett County accepts
the (; 0 n d i t ion sse t i.' 0 r 1: 11 i n r; h e Let t e r 0 f Con d i t ion s ci at e d F e b r u a r y
1;:), ;'391, and arnended Harch 16, 1992, Form rrnHA 194:2-47, Loan
Resolution and Form FmHA 1942-31, Association Water or Sewer System
G ran'c /\!::I r' e erne n -t :
t hat c h e c h air' rn a n and c I e r- k ~'e aut h 0 r i Led toe x e cut e a I i for rn s
necessary to ubtain a loan and grant from FmHA, including, but not
I i m i 'C e d -: 0 t: her c' i i 0 ~'I I n 9 f" 0 r m s :
that ChB discrici: approves as :::;ho,.....n on rorrrr rrnHA 4'-1-2-7, Operating
Budget; the proposed budget:
i-urm rmH.ll.
Form FrnHA
~ I""""" .. r.... ~
l~'-+L_-/
Loan Resolution
Association Water or Sewer System
Granl ,u,greemenc
Operating Budget
Assurance Agreement
Equai Opportunity Agreement
Request for Ob Ii gati on of ;=-unGs
Certification ror Contracts, Grant
and Loans.
~ r-. ..,-., """"'..
1 ~ ...t.:::. - .:) 1
.- F rn H.6. " ,,.....
,- 0 rm '-t'-tL.- "
F 0 rm f' rnH~. 40()-.1
r urm .- rnHI~' 400-~
i--
r 0 rm F;IIHA 1 ~'-tv-l
c:: ;: h i b ii: !-\ - 1 () r
~rr,HA Ins.t.~340-q.
The p r' 0 p 0 sed I ate :" c J 1 e d u I e for' '"J ate r use I s as f 0 i i 0 w S :
i~inllnum :;"1"1..11 r~or ::-'v"......O g..al' I'ons, plU<=" -/ -0 10')0 ~al
' _ ,.I ' ~ --t;:.:; / : ~'I 0 n s
for a I 0 v 8 r' :2,000 9 a i ion s .
T his res 0 i uti 0 r I i: () b e com e a par +. 0 f the 0 f fie i aim i n ue e s 0 f the boa r d
rnee'cing :,eici on April 13,1992
i'io t i un Inaue u'y' Commissioner Beatrice Bailey Hill
Seconded c'y Commissioner Walt Titchener
to adJpt the resoiution. Mation passed 3 for, 0 against.
.w.ttes i::
By:
- '--r
vil\<,-L",",-,).:~~, 1__. I ,
l..... ; ~ ,." ~~
--.;' I
( IL L ,~ Jf
7f-.r ~:?f~~
I
I
I
599
~...7~D./\_.I:-~~"'!~'- .
~:-nrn"! ~:fn:1.':.. o._;',.J-
!Rev.j.~':.;;\
, . "
. C.:~.:O;1 ~
..~:JUJ./dIC::: .~GREEUENT
':U;\G;;r~'it!;; '.'I.~~Li.i :'.i )lts ,..ct of 1964)
Th~
"l)l.lL!;CJst :Iatcr and Seuer District of Harnett County
..--- .....---.---. .-----..--.-----7:;;;;;;..;;r;;ct'Pt;;;;c.j....-..--.-..--.-..--..-..-..-.-...-..... ........-. ...... ,
?..... i) .....B.~J.5.9.. 1.; 1 1 ingl:D..D......:::C..2Z5.!...6................._..._._.........._...._...m.m.....m.....................___.._. .
.----...-...-.. -.. {::ddressj
(":~ecil'Jicnt" ~:~rcjn) j,ercbv :,ssures tte U, 3. Department of !.~riclJlturc that Recipient is in compiiancc with and will
continuc t;) carnpiv ..mh....itlc '/1 of the Civil J.icl1ts ,\ct of 1964 (42 use 2000d et. seq.). '7 CFR Part 15, ;'Ild Far:11ers
Hom~ ...drr.L'1i~t~a!;Dn ;e~ui'::liQns ~~lOmui;ated ll;ereundcr, 7 C.F.R. 81901.202, :n accordance Wilh that /.ct and the
regulations r~I'erred to ';bo'ie, ~1ecjnient qrees ;h:>t in connection with any program or activity for which Recipient receives.
rederali:r::!ncd ::ssist:!nce (:lS ~uch l::rm is defined in 7 C.::,~, :314.2) no person in the United States shall, on the ground at
r~ce. c~lor, (r r.:llionai cri"in. oe excluded from participatiOn in, be Gcnied the benerlts of, vr be otherwise subjected te:
discrimination.
1. .7.~cir;ellt :.gn:es t~"-.lt ::ny tr::mrer of ::.ny :.:ided facility, other than personal property, by ~Ie. lease or other
conv~van C~ 0/'-,: on rr::ct, snail l:e, ::'i1ci ~nall be made expressiy, subject to the obligations of this agree men t and
~i~nsier~e)~ 8.~sum!'tion tt~reof.
~. .'..eC;~:':nt ~ hall;
la)~~cO =Ucfl ,:cords md :ubmit to the Covernmen t such timely, compiete. :md accurate information as the
'";0vemmenr may Getermine to be neceSS.:1ry to <;sce~t~jn our/my compliance with thIs agreement and the regulations.
':::-r:1:t _~c;:.~~s .'":/ .~Ul~1oriLed ;:n~pioyces uf ;.11~ ?armer: ~-!ome ,~dmini~tn.:!iQn fir t~1C tJ.~). Dcpartm~nt of
:-':,,'j:\..J(dre during normal busine~s hours to such books. records. :lCCOUntS and other sources of information and i!s
'~c:ii ,i~s :..; may be ;~ertinent to ':scert3inin~ wcn compliance.
(C) bkc :,Yaii;tb!~ to u;:ers. prticip::mlS. cep.eficiaries and otr-.er interested persons such im'ormation r~l\arding the
:,roviSIC1S or" tnis ;;lleement ;;nd llce r:l!uiations, ;:nd in such manner as the f,nmers Home Administration or the
(J.2. '~.:r.l3Ttr.:cnt ,;;. .;.griculture finds r.ecessary to Inrorm such persons of the protection assured t;lem against
. . ..
;j)~:.;r:mL-;:: tlon.
3. :iJ~ ctli:ralJons or" Pli:; agreement :hail continue:
',,:\) cS' -: ~ny f~a! r-ro~erty. :;lcluciin~ "ny structurf:, ::cquired or improved with tJ:e cia of the Fede,'al ('jnanc:ai
~~sis!~nce. .;0 Ion::: ::3 such real property is u:ed for the purpose f-Jr which the Federai financial assistance is maue
or for c;1other r:.Jr~o=e '.'!hic!) afforc:s similar s~rVlces or benefits. or for <:s long as the Recipient retains ownership or
rc;sc~:;JOn c!' tni: :~roperty, ''1hiche'ler is longer.
~b) _ ,.s to any r:~rsonai property r:cquired or improved with the aid or the Federal financial Jssistan.:c. so long as
.1eci:Jiera i~t:lins ownership or possession ot' the property.
(c; .',,5 iO any other :;ided facuity or nClivity, :..Intil the last advance of funds under the loan or grant has been maGi:.
. 'Jpon ::ny bieach or ',iolation of this agreement the Government may, at its option:
:") '.:'wnin:lte f'r ret"l'S-e to render or continue tlnancial assistance for the aid ot' t:le property, facility, project,
~er';c~ 0r ::cti':ity.
fb) :nt"orc: this ~.yeement JY ~uit for specific ;:erformance or by any other available remedy under the laws of
the United :":tates cr the ::tate in ":hich the breach or violation occurs.
ili~ts ::no I~medj;s ffo'.i<:ied for t;nder this ngreement shall be cumulative,
In wi tnes, ,-, h ~ reI) i, ..--0..<2U!.h.EL'lg.J:~~!.'=.E_~l.l}~...~~~~E....Q.~~_~E2:.~.1;._?.~..~~E_~~.~.E...s:~~.~~y...___.._.....__.. on t hi s
(name of recipient)
Jate im: (':u~ed "lis ;~r-ement to l.,e e::.ecuted ty its duly authorized officers and its seal affixed hereto, or, if a natural
;:~r~on, :.::; ;::r::ul1to c~ccu~~d t!-lis ::greement.
Southeast \.Jater and SeHer
.llis.t.~ ~...",. t...l).LJiaxne.J:.t ..S.<..9. \m.t.Y...__.__ . _..._. _ __.... _.... ...
. I? ecipie n [
fSF.~l_~
04-13-92
--......---..-..-...................................---..--............---.----.................-.........---------....-----Diic--
. 'tr;:;~:
('1 .
.......1aJ.J:r'.....3..n_. "_' .._ _.... ..........._ __..._.......__ __"__ ".' __. .__. ...
Tilie
(
FmHA Instruction I94o-Q
Exhibit A-I
C::RTIfIC,\TION ::-O~ CONBACTS. G~ANTS AND LOANS
The undersigned certifies, to the best of ' his or her knowledge and belief,
that:
1. No 7ederal 3ppropriated funde have been paid or will be paid. by or
on behalf of the under51gned, to any person for influencing or attempting to
influence an officer or ~mployee of any 3gency, a Member of Congress. an
officer or ~mployee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant or Federal loan, and the extension, continuation, renewal,
amendment, or modification oi any,Federal contract. grant or loan.
2. If 3ny funds ryther :han 7ederal appropriated funds have been paid or
~ill be paid to any person for influencing or attempting to influence an
officer or ~moloyee ?f 3ny 3gency, a Member of Congress, an officer or
!mployee oi ~ongr~ss; Jr 3n 3mployee of a Member of Congress in connection
with this Federal contract, 3rant or loan, the undersigned shall complete and
submit Standard Form - LLL, "Disclosure of Lobbying Activities," in accordance
with its :nstructions.
600
"~
3. The under~igned 2hall require that the language of this certification
be included in the 3ward documents for all subawards at all tiers (including
contracts, subcontract~, and subgrants under grants and loans) and that all
subrecipients 3hall ~ertify and disclose accordingly.
This certific3tion is 3 material representation of fact upon which
&:'eliance '.las "laced '.hen this transaction was made or entered into.
Submission of" this certification is a prerequisite for making or entering into
this transaction imoosed by 3ectian 1352, title 31, U.S. Code. Any person who
fails to file the ~~quired certification shall be subject to a civil penalty
of not less than $10,000 3nd not more than $100,000 for each such failure.
I
,
:1-
r~, 'C.L'~, ;,(.\
04-13-92
(date)
_::...vl
(name)
Lloyd G. Stewart
Chairman, Southeast
Hater and Sewer District of Harn~tt County
(title)
"~:IT=D :3T:,T:ZS ;)EPART:.1ENT OF AGRICULTURE
FORM APPROVED
O~lB No. 0575-D018
Form FmH,\ -,00-1
(He\'. ~-1!'-:)3\:
?rR;.lEr:s :iO:,IE 1',m.UNISTRA TION
:'=':OU.:',L OPPOnTU~HTY AGREEMENT
Thi s Li 2,reemen t, ,_at ed . u................................ u~?~~.~...~.~.~....~?.~.~............................_......................................................... bet ween
. u........ .~~.~~.~.~~~:?:~. ~...: !.~.~.~.~.. .:-:.r.:~....~:=:~!.~.~...:~~: .~~.~j..~.~...:? f...; ~:~ ?;'.D.~.!;.!:... \:;.9.!mty. ...._.... .......... ...................... ................ ...... .........
(herein called "~eci::>ient" woether one or i710re) :lnd the ;:'armers Home Administration, United States Department of
Agriculture, rursuant'to the rules and reguiations of l:,e .':ecretary of Labor (herein called the 'Secretary') issued under the
authority of E~ecutive Order 11246, uS amended, ':;itnesseth:
In consideration of financial 8ssistance (I,..hether by a loan, grant, loan guaranty, or other form of financial assistance)
made or to be made by the Farmers Home I\dministration to Recipient, Recipient hereby agrees, if the cash cost of construction
'.York performed by Recipient or ::! construction contract financed ','.'ith such financial assistance exceeds SlO,OOO--unless
exempted by rules, regulations or orders of the Secretary of L.ioor issued persuant to Section 204 of Executive Order 11246 of
September 24, 1965.
1. To incorcorate or cause to be i:lcorporatea into ~:1\' contract for construction work, or modification thereof, subject
to the relevant l"'Jles, regulations, and oreers of the Secrelary or of any prior authority that remain in effect, which is paid
for in whole or in part with the aid of such financial ussistance. l~e following "Equal Opportunity Clause":
During the performance of tl1is contract, t~le contrnctor ugrees uS follows:
(a) The contractor ':lil1 r.ot ciiscriminale U1;alnSl 8ny c:molovee or applicant for empio~ment because of race, color,
reli~ion, ~ex or national ori~in, Tl;e contr.:Jct:::r "'iil L.ke afiirmative action to ensure that applicants are employed,
aod r'12f.'mployees are t:eated curing emolo\'menr,..ithout regard to their race, color, ieligion, sex or national
ori~in. S~c;:. sction ~nail i:1ciude, ~.ut r.ot li~ limited, to the following: employment. upgrading, demotion or transfer;
rec::l1t~::?nt or "2cruitment 2Qvertisins; :avoff or ~2rmination; rates of payor other forms of compensation; ana
selection for t:aining, i:1ciuding 2oprenticeshio. ~::e contractor agrees to post in conspicuous places, available
to :r'1ployees end appiic::mts i'or c:!10iO'imenr, ;~otices to be provided by the Farmers Home Administration setting
forrh the provisions of this r.ondiscriminmion clause.
(b) The contractor nill, In all solicitations or edverri sements for employees placed by or on behalf of the contractor,
state that all r,ualified nopiic"nts "..IiI receive consideration for employment without regard to race, color, religion,
sex or !' ational ori gin.
(c) The contractor ,..,ill send to each labor t:nion or reoresentative of workers with which he has a collective bargaining
agreement or fJther contract c'r ':ncierstanding, ,) ;;atIce, to be provided by the Farmers Home Administration,
advising the saia labor t:nion or ,:..ori-:ers" :eoresenrative of the contractor's commitments under this agreement as
requi:ed Fursuant to section 202(3)- 'Jf E;:ecuri ve Order 11246 of September 24, 1965, and shall post copies of the
:loticc in consoit:uous places uvailuble to employees 3:ld applicunts for employment.
(d) The t:ontr::ctor '.-iill comeJlY ,:..ith 211 ~rovisions ot E~:ecutive Order 11246 of September 24, 1965, and of all rules,
reguiations ;lOd relevant orders cf t':e :::ecrerarv of Labor and of any prior authority which remain in effect.
(e) The contractor ,...iiI furnish nil information c.nd reports reauired by Executive Order 11246 of September 24, 1965,
rules, r2guiations, "nd orders, or ~ursuant thereto, <::ld .....ill permit access to his books, records, and accounts by the
Farmers Home l\dminisuation, Office 01 Equal C?portunity, U. S. Department of Agriculture, and the Secretary of
LaDor for purposes of investisation [Q ascertain compiiance with such rules, regulations, and orders.
(0 In the ';vent oi the contractor's noncomoiiance ,.-..ith the Equal Opportunity (Federally Assisted Construction) clause
or ..-..ith "ny of the said raies. :egulations, or orders, this contract may be cancelled, terminated, or suspended in
'Hooie or in part "nd the contrnctor mav ce deClared i~eligible for further Government Contracts or Federally Assisted
construction conuncts in accordance ,:..ith Droceriures authorized in Executive Order No. 11246 of Seotember 24 1965
2nd sucn ether ~:anctions r~av Le i:noos~d ~,nd ren:edies invoked as provided i:l Executive Order No. 11246 of
SeptemDer 2~, 1965, or by ruie, reguiation or order ot the Secretary of Labor, or as provided by Law.
(g) The contractor .....ill i:1ciude the provisions oi this [caal Opportunity (Federally Assisted Construction) clause in
every sabcontract or purcr:ase order. :.:nless exemotec2 by the rules, regulations, or orders of the Secretary of Labor
issued ~ursuant to Section 204 of I::::ecutive Grder). 11246 of September 24, 1965, so that such provisions will
be .ind.in-s ~:9on 83cn ~~ch 2ubco~tr2ctor Gr \'encior. The contractor \",'ill take such action l,vith respect to any
subcontract 'Jr rurchase crder as the i7armers Eorr:e r\dministration Day direct as a means of enforcing such
provisions, i:lcluaing :.:anctions for r.oncomoiiance: ~r')viried, l~owever, that in the event the contractor becomes
irlVoived :::, or is t~uearened '-:ith, iitigation ,uah " ~:uDcontractor or vendor as a result of such direction bv the
:ar;;:ers ::orr;e .,dministr3tic:l, the ccntrncror ::~a:; i?CUest the United States to enter into such litigation to pr~tect
tbe i~re~es[ cr- t~e united States.
'" '): t!(Jn
:-:m-L\ .~(~n-l P~,e':. 7-19~33)
I
:'0 ,;e ::aunri ':v 1'1e rrovisions ci the Equal Opportunity Clause in construction work performeri by Recipient and paid
for in ',,-,r.oic or In rart .::lth the :'..ld of ~uch iinancial assistance.
.3.;0 lJotlf;' "ll posDccti';e contractors to file the required 'Compliance S~atement', Form FHA 400-6, with their bids.
t For:n''.D-'':2S, i:lstructions to Contractors, ,..,ill accompany the notice of award of the contract.
Bid conriitions br ;.11 ~onexcmpt Federal and federally assisted construction contracts require inclusion of the appropriate
"!Iometown" or "!:l1poseri" plan dfirmative action and equal employment opportunity requirements. All bidders must comply
with the bid londitions contained in the invitation to be considered responsible bidders. and hence eligible for the award.
5. To assist "nri cooperate actively with the Farmers Home Administration and the Secretary in obtaining the compliance
of contractors and subcontractors \1ith the provisions of the Equal Opportunity Clause and the said rules, regulations, and
orders, to obtain <lnd furnish to the [o'armers Hame Administration and the Secretarv, Form AD-560, Certification of
Nonsegregated facilities, to submit the Monthly Employment Utilization Report, Form 'CC-2S7, as required and such other
information as they may require the supervision of such compliance. and to otherwise assist the Farmers Home Administra-
tion in the discharge of its primary responsibility for securing compliance.
6. To refrain from entering into any contract, or extension or other modification of a contract, subject to such Executive
Order with a contractor debarred from Government contracts or federally assisted construction contracts pursuant to Part II,
Subpart D, of such Executive Order or to prior authority; and to carry out such sanctions and penalties for violation of the
provisions of the Equal Opportunity Clause as may be imposed upon contractors and subcontractors by the Farmers Home
Administration or the Secretary pursuant to such Subpart D.
7. That if Recipient fails or refuses to comply with these undertakings, the Farmers Home Administration may take any
or all of the following actions: (a) cancel, terminate, or suspend said financial assistance in whole or in part; (b) refrain
from extendin~ any further assistance under the program involved until satisfactory assurance of future compliance has been
received from Recipient; and (c) refer the case to the Office of Equal Opportunity, U. S. Department of Agriculture for
appropriate action.
601
Witness the due execution hereof by Recipient on this, the date first above written.
Recipient
Recipient
Southeast Hater and Se~oJer District
of Harnett County
Name of Corporate Recipient
.~, ,L,. t,/ I
By -A~:.u,<.{ // / r'"L....t.,.... 7:/v
(I;'l."d;:-:r; 'T;;(;;~:; -/ President
Revised 3-13-92
(CORPORATE SEAL)
Attest:
. (, \,.....:...._ ~.4,- ..
I ,"'ddrl'~;;
'"" Jlll \':
.,. June 30
! '; 92-93
1 ':
! 0
- i
I
.
I
i
i
,
I
I
I"~
0
P. O. Box 759, Lillington
I c, 'I'l~'- ! ::;1[<':' JUClitllill" ~rp Cu,i,"
I Harnett : N. C. 27546
.' 93-94 i ,) 94-95 '<) 95-96 I ::i~;r [:uli Yca.r
:-lOll th(~.:J;:J: ':,1 t [~r
Ind Sewer District
, ll) E i ~ :.
I. I ,'~( ),\'1 ~
,.,:
Hater Sales
82,000
120,000
225,000
234,488
~ ;\1isc,~iLlllel)t1S
h. '_.;'::,S: ,j~U\VaIll:es and
J ;"~I,i ;,!ctions
:..,':.d U"cr::tilW income
.':..d...i L:;t~s i. l~lt"Olll~h {)'J
'I.
L
82,000
120,000
225,000
234,'+88
(_)PE1~:'. J:'~ ~(; ~;<:J):::!'.lS [;?
S,SJJ.aries/Travel
1. Office Expense
2J,()()C 30,000 33,769 33,769
3,000 4,000 4,000 4,000
7,500 8,000 3.740 8,740
1,000 1. 500 1,750 1,750
7,500 8.000 3.700 8,700
R.COO ::J,OOO 9.400 9,400
24,000 35,000 GO,OOO 68,286
;;8, no 88,920 88,920 88 ,920
35,000 50.000 fiO.OOO 63,300
199.920 'D4.420 'J.75.279 286.865
() (117.920) 014,420) (50,279) (52,377)
Audit
i0Bonds ~ ~nsurance
jlTestin~/Chemicals i
i
! :2S~p]; es I~Iaint n.epairs
I
L3Nisrn 11 ,"TI POll S
!.-~BuJ..k...2,I::!r-~r Pllrrn::!sp
15INE~i~ts{;BkN:' S
tt>. :)':l)fCCldti,Jil
17. -"T'.~):-:~i;, :.:'~~r~l~lI~~~ E:~DCl1S~
'\'tlC: Li'~Jc~ L t:lrouQil :.())
12. ['I ('PEF...\Tlt'!C ';:";CO;>1E
L(:;:':~~ "":j'H.~ 7 L~c;s 17:
~;(JL\~()FE!.~_,""Ti~<C;' I:'JC().\1 [
i ').
20.
21. ;.;[::~; t()n()~'C':-:1rin:! i;lC()l11~
,..".:1.:..i J :~ ,] il0 '201
'. :.L'! ::Ce,IE ; LUSS
,~~ ili LiJ1~" i ,3 ,I lId = 1. i
":~l:hl~'r .-'~ ~:;lC .L'" ~~:...'>~~~u:....
o
(117,920)
(114.~20)
(50,279)
(52,377)
',ICi:.'t-'1I1d i,ni,:c:;:,j (';lsh Fi,)\\' Appro\"cd b l;u\'crnin;: tod\"
1.. t ~;..;', [ :
, ~ '-- \. \.1 ~_'''':'_-I
'1- (
--.
'.
... ( \
04-13-92
-.
:)
, \; .)'.... (','",-'[,'"':1'.1'
f...'---.;..,c
-~.._~
. ,. /
/ -,I
- -..... '-~ _L.-~
()4-13-92
602
'cheduk 2
A.
Lill~ 2.2 1:',):11 :,chl"lu\c I Income Iloss,
)\rtd
Items ill (Ircrariolls not R.211uiring C;lsh:
1. Dc:prl'ciation (line 16 Schedule 1)
2. Others:
1)1~()JI:CTEj) <'.\Sll FLOW
I 9?-031.(,g3-% 1",194-95 I"~ 1 : 95-96
19 - / ,:'- -
I I I
1.117.97.0) \014.420)
I '
I !
35.000 I 50.0001
\ '
~.111.000t -0- \
\ \
, I
I
I
,
63,300
I l"irsr
: Fuil '{car
I
(50.279~ (52,377)
n,
60,000
,
!
I
c.
Cash Provided From:
1. Proceeds from FrnHA loanigrant
2, Proceeds from others
3. Increase i.Decreasel in Accounts Pavable. Accruals
clnct other Current Liabilities
4. Decrease (lncre:lse) in Accounts Receivable. Inventories
"nd Other Current .~.ssets I Exclude Cash)
O I Applicant Con~~1DU(10n
5. t ler:
Sale of BAN's
50.000
1.482.00 )
I I
1.532.00~ 3034.080
I I
I \
1,508,50? 1508,50P- -O-
j I
I n I n! 0
_ 11482~OOO\ 3! 3
1 "OR, ')00\ ?qgO. SOOI r) I n
o I ')3.5001 67.080 \ 2,660
S23.500 \:-, li7.080\~ '1.sliol'12.381
2.nnO \ s
I
s
-0-
-0- I
-0- i
I
I
(li4.420n
\
6.
9721
10,923
D.
Total 2.11 A. Band C Items
E.
Less: Cash E:;nendcd fnr:
Ull Construction. .i::quipment and New Capital Items
: loan :lnd Grant funds)
2. Replacement a nd Additions to Existini! Propert\'.
Pbnt and Equipment
3. Princiral P~yrnent FmHA Loan
4. Princip::d f':'.';mcnr Orher Loans
5. Other: 'Reuav SAN's
6. Total E 1 throuL!h S
Add
10.908
o
o
oj'
10 gOR
F.
Beginnin;: Cash [hlai1ccs
15
G.
[Ildin~ Cash Ealances (Total of D Minus E 6 Plus F)
Item G Cash Balances Composed of:
Construction Account
Revenue Account
Debt Payment Account
O&M Account
Reserve Account
FundEd Deoreciation Account
Others:
s:21.')oo
s () 7 .080 S
I
i
I
I
I
I
I
I
15
12.381
15
I
I
<12.381\'
Total - Ac:rees with Item (;
1323.500
" h 7 ,0801 ' 2.660
I
111'[,\1('11":]')
". !,:lin~! :3uJ!!et Schedule I
Tllis tor;~i !'. r.c . ' rrc'r'arCll h' tlle Applicant and is to include data for each year, from loan closing through the first full year of
<,pcr:ltinll : '..::i':'I'_': ';, DIY ,'NO calums are required, use columns four (4) and five (5).
InClllllc rind c,::-:n'-e !~ellls:
i\lll.bl~ 1'1l,c:rcr'.J,:\OuiJ h.~ on the s:J.rne basis as theAoplicanfs Accounting records. i.e.. cash basis. accrual basis. etc..
OperJtin~ i rlCOITlC:
lines J.5 Li3t types ()[. income as appropriate.
line 6 - ,\lll)W:1nCes and Deductions:
(Pertains t:eneraily to Health C:J.re Institutions. and represents the difference between Gross Income and i\l11ounts
n,ecei\'ed or to be Received from patients and third party payors)
Operating [:-;t,cnses
lines ts-I.+ List t::pes of expenses as appropriate.
line 15 - Interest FmHA
(mterest exp~nse incurred on FmHA note(s)),
line 16 - Denreci:.!tion
(tot:.!1 Jeorcci:Hion expense for the year)
line 18 - ~:~t Orcr:tin!.! Income (Loss))
(this alTloullt r~presents tlle net operating income or loss before adding income not related to operations below)
:-Jon Oneratin!.! income
lines 19.20 I inuicate IL'~ms Ol' income derived from sources other than regular activities. Ex: interest earned)
line 22 - ,. et ! I1CO m~ fLoss)
I this :.imOUIH is :.ii50 transferred to item A Schedule 2 Projected Cash Flow Statement)
Instructions - :)roiecI2d C,sh fh)\'/. Schedule 2
This form is \~~eci to Proiect the Fiow of Cash by the Applicant for each year. from loan closing through the first full year of operatio
Use the same number CI coiumns as used 011 the Operating Budget, Schedule I. These Cash Flow Projections are important in
determining the adeauJcy or' c::sh to cover operatin~ expenses, transfers to debt payment. reserve accounts, etc..
Cash Easis ,\CCOUlltll1!!
Appiicams \\ho maintalll t:leir records strictly on the cash basis of accounting and have no Accounts Receivable and Accounts Payab:
may oniv need to comdete t:1e following line items: A, B.I. C.I, E-I and E.3, F and G.
I
603
Line Item iilstructions
line A Srin!.: l'orwarli t:1C income or loss as entered on line 22, schedule I.
line I3 "JJ -hJck an\' (i~meciation or other non cash items included on Schedule I. Operating Budget,
line C COIi1t:1I~te il~;ns \:.j throul!h (.6 as appropriate. for item changes which provide for increase in cash balances.
\OTL: L'l) not include changes in ~ash Accounts in Current Assets of item C-L Lines C.3 and C4 will in.
,:ic~tl' (h~ chan!.:es in \Vork.in~ Capital (Current Assets and Current Liabilities. Exclusive of Cash.)
l::nter the ,<2t rotal of all A. Band C items,
Complete it~ms [.1 throudl E-6 as appropriate for items for which cash was expended.
~:nter t:1C i]eginl1in~ CJsil13alancels.l for the period.
The total 01' item D l~ss [.6 plus F will be the Ending Cash Balance(s). This total will be reconciled by balances in the
'o'ariolls :,CCl)lI11tS, i.\:.. construction, revenue, debt, etc..
line D
line [
line F
line C
1'''1'1;; I :71 j I \ 1.[ ~ .
f'ORM Al'I'f!( IVF!)
OMfi NU. IJ,75i!1)7~
I j{L'\ I' ',1'1
U:-JITED STATES DEPARTMENT OF I\CRICULTURE
f'''!l.MERS !.IOME ADMINISTRATION
I "IS\(;i~ I ! \11 :, r ,u!cd _
\:-;,":OC 1\ TlOi\ ',VA.TER OR ~EWEB. SY STE1\l GRANT AGREEi\1ENT
April 13
, ] 9 92 , betwl~en
Southeast \:ater .:md SeHer District of Harnett County
a publk ('orroration or!!anized ~nd operating under
Chapter 162-A of the General Statutes of the State of
~orth Carolina
(,lull1()n:il1l! SlatlllC)
herein ealkd "(;Iantce," :'Ill: tile !'nired St:ltCS 01 ,".merica actin!! t!1rour:h r:1C farmers 1I0rne Administration. Dep;;rtmenl of ,\I!n-
cui ture. herein called .'(;ran tor." \\'1 T:'\ ESSETII:
WIIERL\S
C~rantee has determined to l!;hl,'rtak~ a proiect Gf JCl!LLisition. L':)l1struction. enlargement. or capital iJl1l'Tovement of a (waterl (,c'.\"t':')
system to serve the Jrea unlier iiS iurisdi~tion at an C,:ti:il1leu ,;ost of 5 3,167,000.00
the undertaking 01 sUCtl r'rOlcet.
and has uuly :~uthori.'c:d
, (;r:mtee is abie to finance :101 1110rt: tilan ') 1,532,000.00 of the development costs throug.h revenue,.
char;:es, taxes or :i5:SeSsments. elr r:llHis clhlT.vise a'i;l!iabk to (;rantce resultin::r i:1 a reasonable usn cilarcc.
SaiJ Sdf'l of S 1 ,53~QOO. 00
:las t'ccn comilted L~ and hy Grantee !~Jr s'lch rroiL'ct I";c\','lonmcnt ,:n.;';:
Gran wr h 3S a !.!reet..1 tl) !'fant th.,' <. ~i-ant'-'e ~~ sum ~ot [G '_'!cced ') ...L 635 ,000.00 or ~ 1. 7 ~H?rc.: :1l
or' :";11J d~';elor'nle!1t ~.'o~ts. "!l:l'i~~\'cr~:: ~_~1~ !c~~S~r. ~::J::;.~l't to r!~c t~rn's :-I!1d COuditions c~aahlished bv ihc (~rantor. Provided_ ho.,.\,(:....
tha, [:l~ rrcportion<:lte "112ft: Ci ;li1\' i'rain fUlJLis ,idU;.;jj\ "dl'anc,'u and no, "eeucd for grant rurpcses shall be returned il1Jlllediarclv c',;
till? C;rantor. TIll: CrJnror i~la>' i.:r:nin~ite the ~:r~l!lt 1;1 1....-hoie. ell in part. ;Jt 2n~' tim~ beft)re the date of con1pl~tion. ',\.'h~r,l'\'e~' it :~
dcte~:i1111ed that tl1e CTJilleC has r~ikd to cOllll'l~' I'.:ln ~lIc conditioi1s of the '-'rant.
',0',\'. nIEp.EF0RL ::1 ,'onsider::tion i)] ::aid ',:rnilt h' (;rantor to Grantee. to be made \1lliSU:lIlt to Section .'Ch i'.:1 ,"
Consolidated I-":lTm Jnd Rural Dc-'.~i(,plllel1l :\et f~~r tl:e t)urpose oniy ot" uefr:1Ying a part 110t to exceed
rerc~nt of the deveiL'pment ,'O<;[S. uS der :net! by ai1riic2h!c (arm,:rs Home Adll1l11istration instructions.
51.7
( ; R.\:\Tl:E AGREES TlL\ r (; R :\:--J n:r '.VI LL:
('au"., said t'f'_"l':l ['J ;'C :"nstr~lctcd ,'..!thin the total Sllms al'aiia hie to it. inciuding ~.aiu grJnt. in accordance \'.ith t:lt~
prOIL'~t plans J:1d :;;)e'cificJtic,Iis ;lI:li ~;;~~..' :~lodifL.':~ltlon:--; ih~'reof rrep:lrcd by (~r~ntce Gad Jppio\,('d f~y (;r:J:1tor.
:~. P':rIn:t l'eriodic :~l~,"c,;.;~i()r: ~~t the cO:1~~truc;:()n by J ri~r'p:"~entative cf t~ranLor dtJrin~ con~.:;trucri()n.
Cl:Jl1piy \~..irll ~tny i~1~:~:~11r:;::~ i..j~nt:fil'd i;l :~.~ (~u'/er:ltncnt"s ~:1yirOnlnentai iInoact ~;;}3iysis [or thi~ facility for tht ;-ur-
~lOI.)~ c.r" :1\'oiding (if rC'ducin~ tht~ :ld\'('r~.L' cl1\'ironmcntJl ;nH)~;C'ts ~)f the fl~illt:.:'S constnlction or cper:ltion.
;J. l~'onipiy .....i[!l -ill ;::'pl:'::J:'!,:' ;tJtc' ~l.iltj federal L1\\"s Jnd :-cgulatlolls anJ !ll~ntlg.\?~ 0p~rJtl.: :lnd In;:dntJ.in th(' ~ysleni. iI!clu.~]j!l;l
~his prQjecr i1' L'ss I~i.:Jn the \'.-ilOi:: (<' SJid .':r~rL'JlL conti;lu~~uslv i~ 111 t:! fici~nt ~tlld econoI11ical n1anner.
L. \Iah\.:' 1hc :)~[\'iCL':) (it ".,:lid .;~y.stCJll ~vail:..:bl...: ':,;ithin its CJP~city to all nerSOllS in (;rJntet~"~; ser\-ice urea without JisLrir;lin:J-
Lion 0-.) U") race_ ...'clur. '-.:lj~j(_:,!1. 'il':C llatinnJl origin. ,::!\.', ~narital S~:JlUS. Of rh~,,'~~icaJ or Irlental handic3p t poss~ss C3p:1city to ,_'nter I~HU
L.-:gJl '.U!llract : ,,:JT ::_r'''l'':~~) ,-!l. ;._'::S~.;';~:Ji'i::; chan!'_'s. ;nLiuding ~1.'}~~<~S'-;1l1CIltS. L!X~S. ur fees in accordance with ~l scheJuit.:' or sl!ch ,_'h:1i!..:>..'S,
'.\hc;~:Cf ~"'r C:'il'~ ()r 1::01',' ':.J\';c' c"i ;'_T::LC. .;dop:eli I,~.. r::';()ju!ion date .-\pril 13 , i l) 92..10 I,Ll'
f'';'" :~:c/j!(:~'Li (~'~';;11 i.:~:J;...': ':1;;,-' h'. r;r:_!ll[;:,e. rhc ~Jlili.~l ..~~~;-' :~'_'!~~dU~c r~lust be :.lpr'!t._n.ed by CirJn!or. Th~Ie:Jft;.?r. (~raJ1tt~e Jl~;(:\: In;]!....: "'_I'_Ll
rilOL;il j~"':'l;();lS l'_J Li:~ fJt...: ,"':<... :;~ .is lui~:2 ~l.l the :-:;t12 '.....;:....j~dc r ~:ndl~.; r~;jso:1:lbk i..l~Hj nond:.~l:rin:ina[o;-y.
\d!lh[ Ii, (','I'r:l[llll! ,'osts and service charges from time to time to provide for adequate operation and maintenance,
eml'r!!ellC\' rep:m reserve's. I d',nlcscence reserves, debt service and debt service reserves,
(; Ixpand its '.\'Ielll lrom time to time to meet reasonably anticipated growth or service requirements in the area within
its )urisdlL"llon.
II !'rcl\lde (,i.llltor \\'ith sueh reriodic reports as it may require and permit periodic inspection of its operations by a re-
prescntative of tile Clallt(ll".
t. r(J <'.-.;ecII[,' hHms FmHA 400-1, "Equa] Opportunity Agreement," and FmHA-400-4. "Assurance Agreement," and any
olhcr agre\:lJlents requireJ by Grantor which Crantee is legally authorized to execute. If any such forms have been executed by
Grantee as a r\:sult of a loan being made to (~rantee by Grantor contemporaneously with the making of this Grant, another form of
the same type need not be executed in connection with this Grant.
J. UPOll any default under its representations or agreements set forth in this instrument. or in the instruments incident to
the Jwarding of the grant. Grantee, at the option and demand of Grantor. to the extent legallY permissible. will repay to grantor
forthwith the origin a] amount of the grant received with the interest accruing thereon from the date of default at the market rate
for water and waste disposal loan assistance in effect on the date hereof or at the time the default occurred, whichever is greater.
Default by the Gralltee will constitute termination of the grant thereby causing cancellation of Federal assistance under the grant.
The provisions of this Grant Agrecment may be enforced by Grantor, at its option and without regarrl to prior waivers by it of pre-
vious defaults of Grantee. by judicial proceedings to require specific performance of the terms of this Grant Agreement or by such
other proceedings ill law or equity. in either Federa] or StGte courts. as may be deemed neceSSJry by Grantor to assure compliance
with the provisions of this Grant Agreement and the laws and regulJtions under which this grant is made.
604
K. Rl'turn Immediately to Grantor. as required b\" the regulations of Grantor, any grant funds actually advanced and not
needcd by Grantc~ f(1r approved purposes.
L. l'sc rh,' rcal propert\' inclUding land, land improvements. structures. and appurtenances thereto. for authorized purposes
of the grant as long as needed.
~ I. Title to real pwr't.'rty shall vcst in the reCipient subject to the condition that the Grantee shall use the real property
for the authorized purpose of the original grant as long as needed.
flIe Crantee shall obtain approval by the Grantor agency for the use of the real property in other projects when
the Granree ddermines that the property is no longer needed for the original gr:Jnt purposes. Use in other projects shall be
limited t:J those under other Federal grant programs -or programs that have purposes consistent with those authorized for sup-
port by the (;ran tor.
_~. ','.'hen the real property is no longer needed as provided in I and 2 above, the Grantee shall request disposition
instructions from the Grantor agency or its successor Federal agency, The Grantor agency shall observe the followine rules in
the disposition instructions:
! a) The Grantor may be permitted to retain title after it compensates the Federal Government in an amount
computed by applying the Federal percentage of participation in the cost of the original proiect to the fair market value
of the property.
1 h) The Gran tee may be directed to sell the property under guidelines prOVIded by the Grantor agency ana pay
the FederJI Government Jll amount computed by applying tile Federal percentage of participation in the cost of the
original poiect to the proceeds from sale (after deducting actual and reasonable selling and fix-up expenses, if any, from
the sak rroceeds). When the Grantee is authorized or required to sell the property. prOl'er sales procedures shall be estab.
lished rhat provide for competition to the extent practicable and result in the highest possible return.
! c) The GraInee may be directed to transfer title to the property to the Federal Governmen t provided that in
such (:lot's the Grantee shall be entitled to compensation computed by applying the Grantee's percentage of participa-
tion in the cost of the program or project to the current fJir market value of the property.
Ti,e Crll11r _'{grrelilel/t celiers tile fo//owillg descrihed real !J/"operty (use contil1lwtioll sheets as lleCeSsliry),
All tank sites, pump station sites, meter vault sites, all rights-of-way or easements that
are obtained by Southeast Hater and Sewer District by negotiations, condemnations, or
purchase of existing systems.
.f
\1. .\L,ilk by the lollowing conditions l'erlJin',lg to nonc:xpendable personal property w:1ich is furnished by the Grantor or
Jcquired ,-';holly I.r in part with l!rJl1t funds. '\onexpenliJble ;Jcrsonal property 'lleans tangible personal property having a useful
life l)f morc' thJ:l n;-!e '."e:n and an :1,'lJuisition ((1st of S.WO iJr more Fer unit. .\ Grantee lIIay use its own definition of nonexpe.ldable
per-,ollal rroren\' !1rol'ided :;uch lkt irlltion 1\"01:ld at least include ;dllangible rersonal personal property as defined above.
I. I ise of nonexpendable property.
I a I fhe Crantee shall use the property in the project for which it was acquired as long as needed. When no longer
needed Ielf the origlIlJl l'rOleer, the (;rantee shJI1 use the property in connection with its other Fed::rally sponsored activ-
itil's. il' :my. in the tollo\I'ing order d priority:
( I) Activities sponsored by Fill iI A.
(~) .\ctivities sponsored hy other Federal agencies.
I hi During the lime that nonexpcnlbhle personal property is held for use on the project for which
it \' :15 ,""liulled, the (:laI1l,'e :;halJ make it aV;lilabie f,)r use on other projects if such other use will not interfere with the
'.'.-ori,: un the prOI,'ct for 1\ hich the property was onginJlly acquired. First preference for such other use shall be given to
FI1' 1/.\ 'i"'l1sored proiect,. Se,:ond prell'rence I'iil be gi\"t~n to other FederJlly sponsored projects.
[Ji i'l , ':. 'I , i :'I'!Ie'\['l'ndable I'roperty. When the Cranree no longer needs the property as provided in paragraph
f.: I ;j """ '. . I ii,' 1'1', ';'.':: ';::~I I I" Ihe'd for other adivites in accordance with t he following standards:
: J I '.'" ,nl'\l'e'l:d,lbk i'roperty with a unit acquisition cost of less than $1.000. The Grantee may use the property
"i ,'th,'r .:,.::..:t'.~, wilholtt fL'imburseml'nt to the Federal Government or sell the property and retain the proceeds.
i' I '.('I1C\Pl'illl.1hlc personal I'roperry with a unit acquisiton cost of S 1,000 or more. The Crantee may retain
ih,; i~' i',':':'. : 11' ()th,'r elses j'rolided tilat L'ompensation is l1l<lde to the original Grantor agency or its successor. The
.';1]",,::, .1.' 'I11P,'IlSJ[I',lil shall l'e computed by applying the pl'rcentage ot" Federal participation in the cost of the original
i';n"".l ". :',o"ral1l Ii) l:h' current bir market \':due of the property. If the (;rantee has no need for the property and the
i'rol'ert\. liaS tmUler use '.aILle. the Crantee shall request disposition instructions from the original Grantor agency.
Tllt: (;rJ"i0r agency shail determine whether the property can be used to meet the agency's requirements. If no require-
ment C\1sts within that agency. the availability of the property shall be reported. in Jccordance with the guidelines of
the F edera] Property \IJnJgemen t Regulations (FP\I R l. to the Cencral Services Administration by the Grantor agency
to determine whethL'f a reqlllrerTIent for the pronerty exists in other Federal agencies. The Grantor agency shall issue
instructions to the (;rantel' no later than 1:::0 days after the Cramee request and the foHowing procedures shall govern:
1 I ) If '0 instructed or if disposition instruetions arc not issued within 1:::0 calendar days after the Grantee's
reg ues!. the C r;1I1 tee shall sell the property and reim bursc the Grantor agency an amoun t compu ted by applying
to the sales proceeds the percentJge of Federal participation in the cost of the original project or program, How-
l'ver. the Grantee shall be permitted to deduct and retain from the Federal share S 100 or ten percent of the pro-
ceeds. whichever is greater. for the Grantee's selling and handling expenses.
(2) If the (;rantee is instructed to ship the property elsewhere the Grantee shall be reimbursed by the
benefitting Feeleral agency with an amount which is computed by applying the percentage of the Grantee parti-
cipation in the cost of the original grant project or program to the current fair market value of the property, plus
any reasonable shipping or interim storage costs incurred.
(3) If the (, iJn tee is instructed to othe rwise dispost ul (he property, the Gran tee shall be reimbursed by the
(~rantor agencv for such costs incurred in its disposition.
3. The Grantee's property management standards for nonexpendable personal property shall also include:
(a) Property records which accurately provide for: a description of the property; manufacturer's serial number
or other identification number: acquisition date and cost; source of the property; percentage (at the end of budget year) of
Federal participation in the cost of the project for which the property was acquired; location. use and condition of the pro-
perty and the date the informJtion \Vas reported; and ultimate disposition data including sales price or the method used to
determine current fair market ';aluc if the Crantee reimburses the Grantor for its share.
lb \ .\ physical inve:1 tory of property shall be taken and the results reconciled with the property records at least
once every two years to H'rify the existence. current utilization. and continued need for the property.
(c) .-\ control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the
property. .\ny loss, damage, or theft of nonexpendable property shall be investigated and fully documented.
(dl Adequate maintenance procedures shall be implemented to keep the property in good condition.
(e) Proper sales procedures shall be established for unneeded property which would provide for competition to
the extent practicable and result in the highest possible return.
I
T1,is Grl1/Jr .1.,l?rcemel1t ((Jl'ers rhe (olloH'in,'.? described IIO/Jexpc/l({ahle property (use co/1til1ll<lti011 sheets as /Jecessary),
All distribution lines, meters, valves, fire hydrants, water storage tankes, all buildings,
master meters, and any and all other facilities constructed or purchased by Southeast \~ater
and Sewer District as part of its initial ~vater distribution system.
~. Prol"lJe Financial \1 anagem en t System s which wiil inciude:
I. -\ccurate, current. Jnd complete disclosure of the financial results of each grant. Financial reporting will be on an
accrual basis.
Records which identity adequately the source and :Ipplication of funds for grant-supported activities. Those records
shall contain Information pertaInIng to grant Jwards and authorizations, obligations. unobligated balances. assets, liabilities,
outlays. anJ income.
605
3. I ffcctll"l' lontrol lJ'on ~nd ~ccount:lbililY frH all funds. property and other assets. (;rantees sh:lj] :ldequatcly safe.
gu~rd ~Il such :ISSl'tS anu sh~11 assure that they arc used sokly for :luthorized purposes.
4\Cl'oul1ting n.'cO!c!<; supported by soun:e doculllent:ltion.
O. Retain financial 'Lcnrds. "iupporting documents. "itGtisticai recorus. and all other records pertinent to the grant for a
period of at kast \11re~' years GI lI:r ,'rant closing exceptth:lt the rel'ords shall be retained beyond the three-year period if audit findings
h<Jve 110t heen rc'soi',,,d. \licrofiil11 lopies maY be substituted in lieu of original records. The Grantor and the Comptroller General of
the l'nited State';. ',r :In\' 01 th,'ir duly :wtilOriled represent~ti\'es. shall have access to any books, documents. papers. and records
of the (;rantec's ~o\c'mment \\ hic:11 ~re pertinent to the specific grant progr~1Tl for the purpose of making audits. examinations, ex.
cerpts and transcripts.
1'. ['rmld,' in:mlT1~til)l, as r,'qu~st~d hy the (;rantor t'J :!etermin~ tIll: need tor ~nd complete ~ny necessary Environmental
Impact Statements.
Q. Prm ide :111 auuit rc'PrH1 :'r~p:JI\:d in sllffici~nt ,kt~il to allow lhl' Crantor to determine that funds have been used in
compliance witl1lhe rrnpr1sal. JI1\' :lpplicahlc laws and rl'!~lIl~lions and this .\greement.
!{ \~ree l') aC',DUlll t"r :lid to r~tllrn to Grantor interest earned on grant funds pending this disbursement for program
['IHI'O""'; Whc'll lh.: (;r;]:1t". I .1 un:t '.'t I-K31 !;overnment or 3 nonprofit organization, St:ltes and agencies or instrument:llities of
'ita t l'<; ,'lJli !lot r~ hC'lcl .I.',(jlllll:lbk 10r interest earned on grant funds pending their disbursement.
S ',,)1 "ncumr,:r. [ransf~r "r dispose of the property or any part thereof. furnished by the Gmntor or acquired wholly
or \l1 l':lIt "vilh ('["lntor !:In,b.\ ilhollt th~ written consent of the Grantor except as provided in items K :lnd L :lbove.
r Indt:l.il' in ,!!i ,ontracts t'H construction or rep;Jir a provision for compliance with the Copeland ".\nti-Kick Back" Act
i I.'; 1',S.c. :~7..1i .1, ,1If'pJl'l1ll'ntc:d in Department of Labor regulations (29 CFR. Part 3). The Grantee shall report all suspected or
r\~porrcd viobtlOllS to t hc (;rantor.
L. 1;1 ,:unstrucl1on contracts in excess of S2.000 and in other contracts in excess Df S2.~OO which involve the employment
of mechanics or llborers. to include a proVision for compliance with Sections 103 and 107 of the Contr:lct Work Hours :lnd Safety
Standards .-\ct 140 C.s.c. 327.330) as supplemented by Department of Labor regulations (29 CFR. Part 5l.
\'. To include in all contracts in excess of S I 00.000 a provision that the contr:lctor agrees to comply \\'ith all the require.
ments of Section 114 of the Clean .-\ir .-\ct (42 C.s.c. S1875C-Q) and Section 308 of the Water Pollution Control Al't (33 U.s.e.
S 13 I 81 relating to inspection, monitoring, ~ntry. reports. and information. 1S \\ell as :lll other requirements specified in Section 114
of the Clean Air Act and Section 308 of the \Vater Pollution Control Act and all regulations and guidelines issued then:under after
the award of the contract. Such regulations and guideline~ can be l!)und in 40 CFR ! 5.4 und 40 FR 17! 26 dated April 16. 1975.
In so doing the Contractor further agrees:
I. As a condition for The a\';ard 01 contract. to notit":; tl:e O\\'ner of the receipt of any c'omlllunlcation from the Envi-
ronmental Protection .-\gency (EPA) indicating that :1 lJciiitY :0 be utilized in the performance of the contnct is under con-
sideration to be listed on the EPA list of Violating Facilities. Prompt not:ii':Jtion is reqUIred prior to contract ~\Iard.
, To certify that any facility to be utilized in the perform:lnce of any nonexempt contr:lctor subcontr:lct is not listed
on the EPA list of Viol3ting facilities pursu:lnt to 40 eFR ] 5.20 as of the date of contract :lWa[(\'
3. To include or cause to be included the abol'e criteria and the requirements in every nonexempt suhcontract and
that the Contractor will take such action as the GOI'crnment may direct as a means of enforcing such provisions.
As used in these par:lgraphs the tt'rm "facility" means any building. 1'lan. instalbtion. structure, mine. I'essel or (Jther floating craft.
location, or site of operations. owned. leaseu, or supervised by a Grantee. coop~rator. wntractor. or subcontractor. to be utilized
in the performance or a grani. agreement.conrract, >ubgfJnr. <.>r _;ub.:ontract. Where a locution or sitc of operation contains or in-
cludes more th:ll1 one buiJdi:1g. plant. installation. or structure, ,he entire location shall be deemed to bl: a facility except \Ihere the
Director. Office ()f Feder:ll .-\ctlvities. En','ironmental Protection .\g~nc... determines That independent facilities are co-located in one
geographical :lrea.
W. The following clause is applicable to nonprofit organiz~tic,ns:
As <:. condition of this ,-;rant or Cooperative Agreement, the recipient assures and certifies that it is in compliance with
and;;iIl comply in the course of the Agreement ',','jth all applicable laws. re~ulations. Exeeutive Orders and
other genernlly applicable n~quirements. including those set out in 7 eFR 3015.20 5(b), whieh hereby are incorporated
in this Agreement by reference, and such statutory provisions as are specificall~' set forth herein.
GRA~TOR .-\GREES TIn TIT
-\. Wili ::J:lke :.:vail:ibic to G.:.:mee for the ~'urpose c! tliis-'-.grecme!1t not to ~x.:eed S 1,635,000.00
'.vhich j[ will :.:dv:lI1Co: -, C;r;:;.ntee to meet not to e':cc;?d
Wlttl t~le actual ::ee':-,; ,r Gr<Jntee as .:~termin~d hy Gr:l!1tur.
B. Wii! assist Crantl'c. within 3'.aiLJble Jrprof'r!~t:'.")ns '.'.ith ,L1cli techni.:ai assIstance as Crantor deems appropriate '~l
planning the project and coorJinatin!! the ;;1:111 \nth k,cal ,:>It"icial comprehensire plans [.or s,'wer anu water :lnJ \Iith any State or
area plans for the are:l in which the proiec: is loc:ltcd.
C. .\t its sole discrc!lon :md at :iny time may gi\~ Jny ~'Jr:,ent. .jererm~n!. ,ubordination. rekase. satis:action. or termina-
tion of :ll1Y or all of Grantel", grant ()bligations. I.\'ith cr \\"ithnut 'cJbat'k cOllsidcration. upon ~Ilch,t~rms and ~'f)ndjtjons JS (;rantor
E1JY cct(:rmir;~ ~o 11'.; I I I 2.d\'i:)Jl.:L :'~' 111rtll;,?r tlL.'> !~'-~Ti"':!:-;:: C-T ~:::..' ~:-:int Cii t~) protect (;rJn~()r'~ (tn~lrh:j;.d intcfl',-;t ":i~rein ~lnd 121 con-
sistent with both the statutory purposes of the grant and the Lmitat:ons 1")1 the stat\ltor~: aut!Jorit\. under which it 1'; made.
51.7
;'cT.:e!1l (,f the de'cclo;'!1l,:nt costs of th~ pr',leer in accordance
TER\11:\:\T10:\ OF TillS f\CREE\IE:\T
This Agreement may be terminated for cause in 'he c\'t'nt III default on the part oi the Cr<Jntee as pro\iJed in Paragr:lph I
abo\'e or for convenience of the Grantor Jnd GrJntee prior to the eJ:Jt::' or" l'ompletion 01 the grant purpose. Termination for con-
venience will occur when both the Gr<Jntee and Grantor agree that the ~l.Jntinllation of thc prokct willllot produce beneficial results
commensurate with the further expcncJi.ture of fun us.
1:\ \VIT:\ESS WHEREOI. C;rantee on the date first aro\c \'critten has c<Jused these presence to he executed hy its duly author-
jzed
Chairman
and attested and ItS corporated seal affixed b~' its duly authorized
Clerk
Bv
Clerk
SOUTHEA.ST HATER AND SEHER DISTRICT OF
HARNETT COUNTY
By
('
I ;
-,: I . ~
tt1..-v~<l...:l...:U "ell 1>. 'L^-,,~ /
(Title) ()
Chairman -:()I_.j
~07'F
):J ~~
UNITED STATES OF AMERICA
FARMERS HOME ADMINISTRATION
By
(Title)
606
f '( ):;/riOll 5
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(Re'" 1-' iOJ)
FORM APPROVED
()\IB NO. 0575-0015
LO\,\ RESOLUTION
(puhlic Bodies)
.\ I\L:SOLLTI/)\ (1F TilE
Board of Commissioners
\JF Till.. ~olltheast Hater and Se~ver District of Harnett Cou.nty
AUTi Itjj{!ZI:\G AND PROVIDING FOR TIlE I;,\CTRRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A
PORTION OF THE COST OF ACQUIRI;,\G. CONSTRUCTING. ENLARGING. IMPROVING. AND/OR EXTENDING ITS
Water Distribution
r' .A.CII..ITY TO SERVE AN AREA L\WFULL Y WITHl)i ITS JURISDICTION TO SERVE.
WHEREAS. it is necessary for the Southeast ('later and Se\ver District of Harnett County
(1'11 iJlic BocA')
(herein after called Association) to raise a portion 01 the cost of such undertaking by issuance of its bonds in the principal amount of
ONE HILLION FOUR HUNDRED EIGHTY THO THOUSAND DOLLARS ($1. 482.000)
pursuant to the provisions of Local Government Act (G. S. 15943 ET SEQ) ; and
WHEREAS. the Association intends to obtain assistance from the Farmers Home Administration. United States Department of Agri-
culture. (herein calleo the Government) acting under the provisions of the Consolidated Farm and Rural Development Act (7 USe.
192] et seq.) in the planning, financing. and supen'ision of such undertaking and the purchasing of bonds lawfully issued. in the event
that no other acceptable purchaser for such bonds is found by the Association:
NOW THEREFORE. in consideration of the premises the j\ssociation hereby resolves:
1. To have prepared on its behalf and to adont :.In ordinance or resolution for the issuance of its bonds containing such
items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government.
To refinance the unpaid balance. in wilOle or in part. of its bonds upon the request of the Government if at any time
it shall appear to tile Government that tlle Association is able to refinance its bonds by obtaining a loan for such purposes
from responsible cooperative or private sources at reasonable rates and tenns for loans for similar purposes and periods
of time as required by section 333(c) of <:lid Consolidated Farm and Rural Development Act (7 USe. ] 983(c)).
To provide for. execu te. and comply wtth FormF mHA 400-4. "Assurance Agreement:' and Form FmHA 400.], "Equal
Opportunity Agreement:' including In "Equal O[lportunity Clause:' which clause is to be incorporated in. or attached
as a rider to. each construction contract and subcontract involving in excess of 510.000.
T () indemnify the Government for any payments made or losses suffered by the Government on behalf of the Association.
Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal per.
missible source.
Th:lt upon default in the payments of any [lrincipal and accrued interest on the bonds or in the performance of any cov.
enant or agreement contained herein or in the instruments incident to making or insuring the loan. the Governnment at
its op tion may (a) declare the entire principal amount then ou tstanding and accrued interest immediately due and pay.
able. (b) for the account of the AssociatIOn (payable from the source of funds pledged to pay the bonds or any other
legally permissible source). incur and pay reasonable expenses for repair. maintenance. and operation of the facility and
such other reasol1Jole expenses as may be necessary to cure the cause of default. and/or (e) take possession of the facility,
repair. maintain. ~iild operate or rent it. Default under the provisions of this resolution or any instrument incident to the
making or insuring of tile loan mav be construed by the Government to constitute default under any other instrument
held by the Gove;nment and execLned or assumed - by the Association. and default under any such instrument may be
construed by the Government to constitute default hereunder.
~;ot to sell. transfer. lease. or otherWIse cncumber the facility or any portion thereof. or interest therem. or permit others
to do so withollt thp nrinr written consent of the Government.
~~ot to defease the bonds. or to borrow money. cnter into any contract or agreement. or otherwise incur any liabilities
for any purpose in connection with the facility iexclusive of normal maintenan~e) without the prior written consent of the
Government if such undertaking would involve the source of funds pledged to pay the bonds.
To place the proceeds of the bonds on deplJsit in an account and in a manner approved by the Government. Funds may be
deposited in institu tions insJred by the State or Federal Government or invested in readily marketable securities backed
by the full faith and credit of the' United States. Any income from these accountS will bc- considered as revenues of the
system.
9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility
in good condition.
]0. To provide for the receipt of adequate revenues to meet the requirements of debt service. operation and maintenance. and
the cstablisll/l1ent of adequate reserves. Revenue acculllulated over and above that needed to pay operating and mainte.
I1JI1CC. L1ebt service JUG reser\"Cs /lIay only be retained or tEed to make prepayments on the loan. Revenue cannot be used
to pJY any e:\!k'IlSeS \,,'hich ~lre not direct!\" incurred for ,he facility financed bv FmHA. No free service or use of the
t:;cility \\'iil be permitted. . '.
..,
3.
-1-.
6.
7.
8.
II. I'u :.:cqulle ~llld Illainlain "Ici! illsurance Jnd fidel it\' bond coverage as may be required by the Government.
12. rl' lqJiJli~il ;nld iJ1aintall1 ,uch hooks afid records relating to the operation of the facility and its financial affairs and to
i'r( l\',dc ! ,If I,'qu Ircd a,ll.ill [hercof as rcquired by the Government. to provide the Government a copy of each such audit
".;jthouI J!s r~quest. ;ll1d ll) forward to the Government such additional information and reports as it may from time to
lime requilc.
13. /'0 !'rovidc Ihe t;\Jvernmcnt at all reasonable timcs access to all books and records relating to the facility and access to
\I\~ L'~Open\ qt thc system ,,) that the Government may ascertain that the Association is complying with the provisions
here,.'j :,n,j (;1 the instruments incident to tlte making or insuring of the loan.
1-1-. rllat it lilC Lovernment fl'quires tltat a reserve account be established and maintained. disbursements from that account
Illa\" be used when. necessary for paY~l!ents due on the bond if sufficient funds are not otherwise available. With the prior
wrItten approval ot the Gu\'ernment. tunds may be withdrawn for:
(a) Paying the cost of repairing or replacing any damage to the facility caused by catastrophe.
(b.l Repairing or replacing short.lived assets.
(c) \1aking extensions or improvements to the facility.
Any time funds are disbursed from the reserve account. additional deposits will be required until the reserve account has
reached the required funded level.
15. To provide adequate service to all persons within the sen'ice area who can feasibly and legally be served and to obtain
Fmf:IA's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which
are teaslble and legal. such person shall have a direct rig.ht of action against the Association or public body.
16. To con,lply, w.ith the mea.sures identified in the Government's environmental impact analysis for this facility for the pur.
pose at avold1l1g or reducIllg the advcrse environmental impacts of the facility's construction or operation.
607
17. To accept a grant in a.l1 aITIOUIH not to exceed S 1.635.000.00
under the terms offered by the Guvernment: that the
Chairman
and c'lerk of the Association are hereby authorized and empowered to take all action necessary
or appropriate in thc execution of all wrinen instruments as may be required in regard to or as evidence of such grant; and
to opcrate the facility under the terms offered in said grant agreement(s).
The provisions hercof and the J'Tovisions of all instruments incident to the making or the insuring of the loan, unless otherwise
specific:J.lly provided by the terms of such instrument. shall be binding upon the Association as long as the bonds are held or
insured by the Governmcnt or :mignee. The provisions of sections 6 through 17 hereof may be provided for in more specific
detail in the bond resolution or ordinance: to the ex tent that the provisions contained in such bond resolution or ordinance
should be found to be inconsistent with the provisions hereof. these provisions shall be construed as controlling between the
Association and the Government or assignee
The vote \vas:
Yeas
3
;-.Jays
o
Absent
2
10i WITNESS WHEREOF. the Board of Commissioners
of the
Southeast~~ater and Sewer District of Harnett County
has duly adopted this resolution and caused it
(SEAL)
13th davof April ,192L.
SOUTHEAST HATER AND SEHER DISTRICT OF
HARNETT COUNTY
By J)iu} J:J /%w,,-J
(j
Title Chairman
to be executed by the officers below ;;~ duplicate on this
:\ tt esr.
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Til!" C1E:L~_
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.3.
CERTIFICATION TO BE EXECUTED AT LOAN CLOSING
I. the unJer~iglleJ. as
Chairman
of the Southeast Water and Sewer District
Harnett County
of such Association is composed of
hercby certify that the
Board of Commissioners
5
members. of whom
3
, constituting a quorum, were present at a meeting thereof duly called and
held on the
13th
day of
April
, 19 JU.; and that the foregoing resolution was adopted at such meeting
by the vote shown above. I further certify that as of ,
the date of closing of the loan from the Farmers Home Administlation, said resolution remains in effect and has not been rescinded or
amended in any way.
~)
Chairman, Southeast
of Harnett County
.19_.
,17 LJ'
Dated, this
day of
Title
Water and Sewer Distril
* U.S.GPO: I 990.0.71 7.014/22642
I