1998/05/18 RESOLUTION ADOPTING AGREEMENT BETWEEN HARNETT COUNTY & THE COUNTY WATER & SEWER DISTRICTSRESOLUTION ADOPTING AGREEMENT BETWEEN HARNETT COUNTY
AND THE COUNTY WATER AND SEWER DISTRICTS
WHEREAS, there are eight (8) County Water and Sewer Districts within the
County of Harnett including Buies Creek -Coats Water and Sewer District, East
Central Water and Sewer District, Northwest Water and Sewer District, Riverside
Water and Sewer District, South Central Water and Sewer District, Southeast Water
Sewer District, Southwest Water and Sewer District, and West Central Water and
Sewer District: and
WHEREAS, it is the desire of the County and the above -named Water and Sewer
Districts to provide a cost efficient method for the administration, operation,
maintenance and expansion of water and wastewater services to each of the
Districts: and
WHEREAS, the adoption and approval of the attached Agreement between
Harnett County and the Water and Sewer Districts would accomplish such end; and
WHEREAS, by adoption of this Resolution it is the intent of the County and
the Districts to rescind the Resolution entitled "Resolution To Establish Harnett
County Public Utilities Fund For Simplified Accounting Purposes" previously
adopted by this Board on February 16, 1998;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County
of Harnett and by the Board of Commissioners sitting as the governing body of the
County Water and Sewer Districts named above, that:
1. The attached agreement is hereby approved on behalf of the County and
the County Water and Sewer Districts and that the Chairman of the Board of
Commissioners be authorized to sign such Agreement on behalf of the County and
each Water and Sewer District.
2. That the Resolution entitled "Resolution To Establish Harnett County
Public Utilities Fund For Simplified Accounting Purposes" previously adopted by
this Board on February 16, 1998 is hereby rescinded.
Duly adopted this 18th day of May, 1998, upon motion made by Commissioner
Teddy J. Byrd , seconded by Commissioner Beatrice Bailey Hill
and adopted by the following vote:
Ayes 5 Noes 0 Absent 0
COUNTY OF HARNETT
BY: _ Q v� &
Dan B. Andrews, Chairman
of the Board and the
governing body of the
above -named Water and
Sewer Districts of
Harnett County
ATTEST:
Kay So Blanchard
Clerk to the Board and the above -
named Water and Sewer Districts of
Harnett County
STATE OF NORTH CAROLINA
COUNTY OF HARNETT AGREEMENT
THIS AGREEMENT, entered into this . day of May, 1998 by and between
HARNETT COUNTY, a body politic and corporate, (herein "County "), BUIES CREEK -
COATS WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein "Buies Creek - Coats "),
EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein "East Central ") ,
NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein "Northwest ") ,
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein "Riverside ") , SOUTH
CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein "South Central"),
SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein "Southeast "),
SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein "Southwest "), and
WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (herein " West Central ") ;
BUIES CREEK - COATS, EAST CENTRAL, NORTHWEST, RIVERSIDE, SOUTH CENTRAL, SOUTHEAST,
SOUTHWEST, and WEST CENTRAL herein being collectively referred to as "Districts ";
ARTICLE I
AUTHORITY
Without limitation, the following portions of the General Statutes of North
Carolina are recited herein as authority for this Agreement:
1.
"PUBLIC ENTERPRISES"
(CHAPTER 153A, ARTICLE 15)
(a)
N.C.G.S. §153A -274. PUBLIC ENTERPRISE DEFINED.
As used in this Article, "public enterprise" includes:
(1) Water supply and distribution systems.
(2) Wastewater collection, treatment and disposal systems of
all types . . .
(b)
N.C.G.S. §153A -275. AUTHORITY TO OPERATE PUBLIC ENTERPRISES.
"(a) A county may acquire, lease as lessor or lessee, construct,
establish, enlarge, improve, extend, maintain, own, operate, and contract for the
operation of public enterprises in order to furnish services to the county and
its citizens .
(b) A county may adopt adequate and reasonable rules to protect and
regulate a public enterprise belonging to or operated by it. The rules shall be
adopted by ordinance . . . (Emp. Add.)
(c)
N.C.G.S. §153A -277. AUTHORITY TO FIX AND ENFORCE RATES.
"(a) A county may establish and revise from time to time schedules of
rents, rates, fees, charges, and penalties for the use of or the services
furnished by a public enterprise. Schedules of rents, rates, fees, charges, and
penalties may vary for the same class of service in different areas of the county
and may vary according to classes of service, and different schedules may be
adopted for service provided outside of the county . . . (Emp.Add.)
(d)
N.C.G.S. §153A -278. JOINT PROVISION OF ENTERPRISORY SERVICES.
"Two or more counties, cities, or other units of local government may
cooperate in the exercise of any power granted by this Article according to the
procedures and provisions of Chapter 160A, Article 20, Part 1."
2.
"INTERLOCAL COOPERATION"
(CHAPTER 160A, ARTICLE 20, PART 1)
(a)
N.C.G.S. §160A -460.
"The words defined in this section shall have the meanings indicated when
used in this Part;
(1) "Undertaking" means the joint exercise of two or more units of
local government, or the contractual exercise by one unit for one or
more other units, of any power, function, public enterprise, right,
privilege, or immunity of local government.
(2) "Unit" or "unit of local government" means a county, city,
consolidated city- county, local board of education, sanitary
district, facility authority created under Part 4 of this Article,
or other local political sub - division, authority, or agency of local
government." (Emp. Add.)
10.1
N.C.G.S. §160A -461. INTERLOCAL COOPERATION AUTHORIZED.
"Any unit of local government in this State and any one or more other units
of local government in this State or any other state (to the extent permitted by
the laws of the other state) may enter into contracts or agreements with each
other in order to execute any undertaking. The contracts and agreements shall
be of reasonable duration, as determined by the participating units, and shall
be ratified by resolution of the governing board of each unit spread upon its
minutes." (Emp. Add.)
0
"COUNTY WATER AND SEWER DISTRICTS"
(CHAPTER 162A, ARTICLE 6)
(a)
N.C.G.S. §162A -88. DISTRICT IS A MUNICIPAL CORPORATION.
"The inhabitants of a county water and sewer district created pursuant to
this Article are a body corporate and politic by the name specified by the board
of commissioners. Under that name they are vested with all the property and
rights of property belonging to the corporation; have perpetual succession; may
sue and be sued; may contract and be contracted with; may acquire and hold any
property, real and personal, devised, bequeathed, sold, or in any matter
conveyed, dedicated to, or otherwise acquired by them, and from time to time
hold, invest, sell, or dispose of the same; may have a common seal and alter and
renew it at will; may establish, revise and collect rates, fees or other charges
and penalties for the use of or the services furnished or to be furnished by any
sanitary sewer system, water system or sanitary sewer and water system of the
district; and may exercise those powers conferred on them by this Article."
(Emp. Add.)
(b)
N.C.G.S. §162A -89. GOVERNING BODY OF DISTRICT; POWERS.
"(a) The board of commissioners of the county in which a county water and
sewer district is created is the governing body of the district."
(c)
N.C.G.S. §162A -90. BONDS AND NOTES AUTHORIZED.
"A county water and sewer district may from time to time issue general
obligation and revenue bonds and bond anticipation notes pursuant to the Local
Government Finance Act, for the purposes of providing sanitary sewer systems or
water systems or both.
A county water and sewer district may from time to time issue tax and
revenue anticipation notes pursuant to Chapter 159, Article 9, Part 2."
4.
"COUNTY PROPERTY"
(CHAPTER 153A, ARTICLE 8, PART 1)
N.C.G.S. §153A -165. LEASES.
"A county may lease as lessee, with or without option to purchase, any real
or personal property for any authorized public purpose. ....
ARTICLE II
RECITALS
The following recitals are herewith set forth as statements of existing
facts and are hereby incorporated as substantive parts of this Agreement;
1.
The parties to this Agreement are "units of local government" and the
subject matter of this agreement is an "undertaking" pursuant to the provisions
of N.C.G.S. §160A -460.
2.
The Districts are county water and sewer districts created by the Board of
Commissioners of Harnett County pursuant to the provisions of Chapter 162A,
Article 6 of the General Statutes of North Carolina.
3.
Each of the Districts has, pursuant to N.C.G.S. §162A -90, issued bonded
indebtedness, said indebtedness having been approved by the North Carolina Local
Government Commission pursuant to the North Carolina Local Government Finance
Act.
4.
Each of the Districts was successful in acquiring financial assistance from
the United States Department of Agriculture, Farmer's Home Administration, among
others, to construct water systems and /or wastewater collection, treatment and
disposal systems.
5.
None of the Districts currently employ personnel or have any means to
administer the ongoing operations and maintenance of their systems.
M
The County currently administers the operations of each of the Districts
and attempts to allocate costs of administration in an equitable and pro -rata
basis among the Districts; however, the costs of administration by the County
require it to separate operating costs for each of the Districts and that such
separation and current manner of operation is unduly complex, cumbersome,
duplicative and inefficient.
7.
The Board of Commissioners of Harnett County, as commissioners of Harnett
County and as the governing body of each of the Districts has caused an analysis
of the advisability, feasibility and legality of consolidating the operations of
the Districts and, after due and diligent consideration has, in the exercise of
their best judgment, determined that it is in the best interest of each District
as well as the efficient use of County resources to administer the operations and
maintenance of the Districts by consolidating the operations and management as
herein defined and agreed.
ARTICLE III
CREATION OF LEASEHOLD INTEREST
Each of the Districts, as lessors, by the execution of this Agreement, does
hereby lease to County, as lessee, and County by the execution of this Agreement,
does hereby lease from each of the Districts, upon the terms and conditions
herein set forth, all of each District's right, title and interest in and to all
water lines, wells, pumps, and appurtenances thereto owned by any of said
Districts and does hereby further lease unto County, as lessee, all of its right,
title and interest in and to any and all real estate now owned by or hereafter
acquired by each of the Districts. It is the intent and purpose of this
Agreement that each of the Districts does hereby lease to County, as lessee, and
County does hereby accept, as lessee, all of the real and personal property of
each of the Districts, subject to the terms and conditions as herein set forth.
ARTICLE IV
TRANSFER OF ASSETS
Each of the Districts does hereby transfer unto County all of its right,
title and interest in and to all cash, accounts receivable, contract rights or
other intangibles, to have and to hold the same according to the terms and
conditions as set forth herein. In addition, County agrees to assume the payment
of all accounts payable, cash deposits on hand and any other contract obligation
of each of the Districts, excluding specifically, however, the assumption and
payment of any bonded or other indebtedness currently payable to any banking
institution for funds received for the construction, operation or maintenance of
improvements within any District.
ARTICLE V
OBLIGATIONS OF COUNTY
As consideration for the lease and transfer of each District's interest as
hereinabove set forth, County agrees to:
1.
Through the Harnett County Department of Public Utilities ( "Utility
Department") the County will administer all operations and maintenance of the
water and, to the extent applicable, wastewater systems within each District.
In so doing, County agrees that, at a minimum, the current level of service
provided to each District will be maintained.
2.
Establish and revise from time to time schedules of rates, fees, charges,
and penalties for the use of or the water and sewer services furnished and to
bill and collect same. It is agreed that any and all funds collected by the
Utility Department shall be collected and maintained as separate water and sewer
enterprise funds and will not be commingled with the general funds of the County
but used solely for the operation and management of the water and sewer
enterprises.
Funds collected by the Utility Department shall be separated into a water
enterprise fund and a wastewater enterprise fund so that funds received for water
services will be used exclusively for the operation, maintenance and extension
of water services and funds collected by the Utility Department for wastewater
services will be used exclusively for the operation, maintenance and extension
of wastewater services.
Deliver to each District or its designee for payment, on a timely basis,
funds sufficient to pay when due all principal and interest payments on each
District's current indebtedness.
ARTICLE VI
COMPLIANCE WITH INTERLOCAL COOPERATION STATUTES
In compliance with N.C.G.S., Chapter 160A, Article 20, Part 1, it is herein
specified:
1.
PURPOSE OF THE AGREEMENT
The purpose of this Agreement is to provide a cost efficient method for the
administration, operation, maintenance and expansion of water and, where
applicable in a District providing such, wastewater services to each of the
Districts through the Harnett County Department of Public Utilities.
2.
DURATION OF THE AGREEMENT
The duration of this Agreement as it relates to any individual District
shall be for so long as such District has outstanding any indebtedness which has
been issued under the North Carolina Local Government Finance Act.
3.
APPOINTMENT OF PERSONNEL
The personnel necessary to carry out the provisions of this Agreement and
undertaking shall be appointed by the Harnett County Department of Public
Utilities, subject to the approval of the Harnett County Board of Commissioners.
4.
METHOD OF FINANCING THE AGREEMENT
The financing of this undertaking shall be by the enterprise funds received
for the provision of water and wastewater services as specified in this Agreement
and the apportionment of costs and revenues shall be by the Board of
Commissioners of Harnett County.
5.
OWNERSHIP OF REAL PROPERTY
Any real property owned or acquired by any District during the term of this
Agreement shall be and remain the property of the District owning or acquiring
such, subject to the leasehold interest of the County as hereinabove specified
in Article III.
Upon expiration of this Agreement between County and any of the individual
Districts pursuant to the provisions of Articles VI and VII, the ownership of any
real property currently owned or acquired during the term hereof shall be
transferred to the County by special warranty deed pursuant to the provisions of
Article VII.
0
AMENDMENTS
This Agreement may be amended by written agreement between the County and
any individual District who is or may become a party hereto as to any matters
between the County and such individual District; however, no amendment affecting
any District who does not agree or consent to such amendment shall be effective
as to any such non - consenting District.
1
7.
TERMINATION
This Agreement shall be terminated as to any individual District by an
agreement in writing between the County and such terminating District; however,
the termination as to any such District shall not affect any non - terminating
District.
Notwithstanding anything to the contrary herein contained, this Agreement
shall be terminated as to any individual District at such time as such District
has no outstanding indebtedness issued pursuant to the North Carolina Local
Government Finance Act.
ARTICLE VII
OPTION TO PURCHASE
Each District hereby grants to the County an option to purchase for the sum
of One Dollar ($1.00) all of the real and personal property owned by the District
upon the termination of the lease as herein specified and the termination of this
Agreement pursuant to the provisions of Article VI. Transfer shall be by special
warranty deed and appropriate bill of sale.
Upon termination of this Agreement and acquisition by the County of the
properties of the Districts as herein specified, County agrees to continue to
provide the services as specified herein at the existing levels of service and
as the same may be expanded in the future.
ARTICLE VIII
NEW DISTRICTS
Any new water and sewer district which may be formed in Harnett County
pursuant to the provisions of Chapter 162A, Article 6 of the General Statutes of
North Carolina shall be made a party to this Agreement upon formation of such
District.
ARTICLE IX
NON- APPROPRIATION BY COUNTY
Nothing in this Agreement shall be construed as obligating the County,
either expressly or by implication, to exercise its power to levy taxes either
to make payments to the District under this Agreement or to pay any judgment
entered as a result of the County's breach of this Agreement. Nothing herein
contained shall be construed either expressly or by implication as a pledge of
the taxing power or full faith and credit of the County for the performance of
this Agreement. County shall not be obligated to appropriate County funds for
the obligation incurred hereunder except those water and sewer enterprise funds
as herein specified.
IN TESTIMONY WHEREOF, the parties hereto have set their hand and seal by
resolutions duly adopted by the governing board of the County and the Districts
all on the day and year first above written.
ATTEST:
COUNTY OF HARNETT
.i BY:
Dan B. Andrews, Chairman
Board of Commissioners
NNE 't lyoan dAand
Kay S' Clerk
Kaw ?f . A,a.,.r.P,and
Kay SN Blanchard, Clerk
BUIES CREEK -COATS WATER AND SEWER
DISTRICT OF HARNETT COUNTY
BY: /J, cZxc
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
Buies Creek -Coats Water and
Sewer District of Harnett County
ATTEST:
Kos: �f ID"aAJ
Ka S. Blanchard, Clerk
ATTEST:
Kay, )d. (Va'A1. dAJ
Kay S. Blanchard, Clerk
EAST CENTRAL WATER AND SEWER
DISTRICT OF HARN�ETT %COOUNTY
BY: & 1 (L'
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
East Central Water and Sewer
District of Harnett County
NORTHWEST WATER AND SEWER
DISTRICT OF HARNETT COUNTY
BY: A..ti Q. &w,
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
Northwest Water and Sewer
District of Harnett County
RIVERSIDE WATER AND SEWER
DISTRICT OF HARNETT COUNTY
194
ATTEST:
I A➢ 1' J/U dn/'.ILCIh�
Kay S9 Blanchard, Clerk
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
Riverside Water and Sewer
District of Harnett County
SOUTH CENTRAL WATER AND SEWER
DISTRICT OF HARNETT COUNTY
BY: /3 . /Cr+GC....+
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
South Central Water and Sewer
District of Harnett County
ATTEST:
Ko� d . (�ia . c d.c✓ d
Kay Blanchard, Clerk
ATTEST:
6Q.w /.
Kay SO. Blanchard, Clerk
ATTEST:
Ka,-) /. dP:,Jk zk,d
Kay S. Blanchard, Clerk
SOUTHEAST WATER AND SEWER
DISTRICT OF HARNETT COUNTY
BY: Z' /S . La.,_,.
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
Southeast Water and Sewer
District of Harnett County
SOUTHWEST WATER AND SEWER
DISTRICT OF HARNETT COUNTY
111
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
Southwest Water and Sewer
District of Harnett County
ATTEST:
Id. aan r1i
Ka Blanchard, Clerk
WEST CENTRAL WATER AND SEWER
DISTRICT OF HARNETT COUNTY
BY: se,._ 'e ,
Dan B. Andrews, Chairman
of the Harnett County Board
of Commissioners sitting as the
governing body of the
West Central Water and Sewer
District of Harnett County
K