1984-09-17 W&S Exhibit
, .
\.
. .~~ r)~'~
~. /7, /111
i..
~'l
,"
RESOLUTION OF THE
BOARD OF DISTRICT COMMISSIONERS OF THE
NEW HANOVER COUNTY WATER AND SEWER DISTRICT
WHEREAS, the New Hanover County Water and Sewer
District is extending its waste water collection system and, in
addition to the issuance and sale of general obligation bonds, is
obtaining federal grants from the Farmers Horne Administration,
and as part of the consideration for such financing has been
required to abide by FmHA instructions~
NOW, THEREFORE, BE IT RESOLVED that the New Hanover
County Water and Sewer District shall abide by the requirements
of FmHA Instructions 1942.17 (q), Borrower Accounting Methods,
Management Reporting and Audits, in its auditing, accounting and
management system.
.~" . ".,~ ~
,t,.II......... \ , .' ,
......~Rt~~~~17th day of September, 1984.
.. ~p '. . Ou ### '
!t..l'~ .4'~'!I-~q'~""~m/P /).#'# -
[COR;'OtA,tf~~ - _ \~ -:t-\
: -'" t ~ ,:>:.
:~: ~(:
~ - ) ,~:
:. ~ ~ ' ."... :
-;. 1J1' ' ""~~' . ~ :
-:. ~ .., ';;;'';;; 7 ,~'" :
.... ~ .... "M _ ':1-..~.~. .." ~ :
Attes\: A"~"'/~'wy" ~--. ~ I
. -'-, '7.t "~....,,#,,. ~~...., t'
r-J) . ~"""? ~r\. I(~ ~
~ ""
~(!/~~ '~
Claud O'Shields; -r.:~ an
Board of District Commissioners
Position 5
USDA-FmHA
Form Fml-fA 442-47
(Rey.2-5-81)
A RESOLUTION OF THE
OF THE NEW HANOVER CCUNI'Y WATER AND SEWER DISTRlcr
AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PRO.
VIDING A PORTION OF THE COST OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR
LOAN RESOLUTION
(Public Bodies)
OOARD OF DISTRIcr CCMMISSIONERS
EXTENDING ITS waste water collection system
FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE.
WHEREAS, it is necessary for the
New Hanover County water and Sewer District
(Public Body)
(herein after called association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal
amount of Six Hillion Sixty-'I\-,D Thousand Dollars ($6,062,000.00) M ~, 11- ~ ,-9c.j.
pursuant to the provisions of North Carolina General Statutes S l62A-90
WHEREAS, the association intends to obtain assistance from the Farmers Home Administration, United States Department
of Agriculture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1921 et seq.) in the planning, financing, and supervision of such under.taking and to purchasing of bonds law.
fully 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 association hereby resolves:
I. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds and con.
taining such items and in such forms as are required by STATE statutes and as are agreeable and acceptable to
the Government.
2. To refinance the unpaid balance, in whole or in part, of its bonds upon the request of the Government if at
any time it shall appear to the Government that the association is able to refmance its bonds by obtaining a loan
for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for
similar purposes and periods of time as required by section 333(c) of said Consolidated Farm and Rura'l Develop.
ment Act (7 U.S.C. 1983(c)).
3. To provide for,execute, and comply with Form FmHA 4004, "Nondiscrimination Agreement"; and Form
FmHA 400-1, "Equal Opportunity Agreement", including an "Equal Opportunity Clause", which clause is to be
incorporated in, or attached as a rider to, each construction contract and subcontract involving in excess of
$10,000.
4. To 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 permissible source.
5. That upon default in the payments of any principal and accrued interest 'on the bonds or in the performance of
any covenant or agreement contained herein or in the instruments incident to making or insuring the loan, the
Government, at its option may (a) declare the entire principal amount then outstanding and accrued interest
immediately due and payable, (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, main-
tenance, and operation of the facility and such other reasonable expenses as may be necessary to cure the cause
of default, and/or (c) take possession of the facility, repair, maintain, and operate or rent it. Default under the
provisions of this Resolution or any instrument incident to the making or insuring of the loan may be construed
by the Government to constitute default under any other instrument held by the Government and executed or
assumed by the association, and default under any such instrument may be construed by the Government to
constitute default hereunder.
6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest ther~in, not pef'
mit others to do so, without the prior written consent of the Government.
7. Not to borrow any money from any source, enter into any contract or agreement, or incur any other liabilities
in connection with making enlargements, improvements or extensions to, or for any other purpose In connection
with the facility (exclusive of normal maintenance) without the prior written consent of the Government if such
undertaking would involve the source of funds pledged to pay the bonds. .
8. To place the proceeds of the bonds on deposjt in an account, in a bank, and in a manner approved by the Govern-
ment.
9. To comply with all applicable State and Federal laws and regulations and to conti!1ually operate and maintain the
facility in good condition. '
10. To provide for the receipt of adequate revenues to meet the requirements of debt serviCe, operation and main.
tenance, and the establishment of adequate reserves. No free service or use of the facility will be permitted.
II. To acquire and maintain such insurance coverage including fidelity bonds as may be required by the Government.
"
I~.
To establish and maintain such books and records relating to the operation of the I fatlliiy" ~nd :its 'fihahcial' affairs
and to provide 'for required audit thereof in such 'a manh:er as may be' required' by th~ Cover'rihlerlt,'tb prd~i'de the
,Government' without its request, a copy of each such audit, and to make and forward ~o the Government such addi-
tiottal information and reports as it may from time to time require.' j! I! ,""':1'(; i ,'>:r",'j \ I:'! Ii:, 'I!I! ",'
To provide the Government at all reasonables times access to all books and records relating to the facility and access
to the property of the system so that the Government may ascertain that the ass6Ciatidn"ls cdtnplying'with 'the pro-
visions hereof and of the instruments incident to the making or insuring of the loan.
To provide adequate service to all persons, within the service area who can feasiblY'and~ regally b'e'servei:l ahd to. o,btain
FmHA's concurrence prior to refusing new or adequate services to such persons. Upon' fail~re t,oprovide seryi~es which
are, feasible and legal, such person shall have a direct right of action against the associatiohor public body. i','"
.. '. :!,
13:
. .
14.
15.
'. ' "! 938 000.00
In the case of a grant 111 the sum not to exceed $ ,
. . ,. . !; r !"Ij,., I: . ." I ,
hereby accepts t~e .grant under the terms as offered by the Govei~ment -dn,d that the ' .Chainnan' f
, , of the Board of District Ccmnissioners ,;.:' !., ,',p, I '!J: I"~; , .
and Clerk/ ' of th~ association arehereby'author~edal1d emp;~~r:dl~~'i~kealf~ct;~n ~~ce:s~~~y or
appropriate in the execution of all written 'instruments as may be required in regard, to ,or :as'evidence of such grant and
the association hereby resolves to operate the facility, under the terms as, offered in said gtantagtet'!men:t(s). ;, ,..:;:,:
'" I' : r, !; j' ~ ;~.i :;.l .~ ' , <.; . I i
;..; ~ ~ ,I I 1 1, j: i ! .. ~
,'~'f q, (,. ;. . ;
, the associa tion
ii lIt ;
The provisions hereof and the provisions of all iristrumimts inciderit'to the rhaking o~, the,:irisuri~g .<;>ft~e 'Jo;n', Jnless'biher-
wise spe~jfically provided by the terms of such instruments; shall be binding upon the as~~ciation as long 'as the bonds are
held or Insured by the Government. Tr~ provision~ of sections q through 13 hereof may' be p,rovi4ed for ill more specific
detail in the bond resolution or ordinance; 'to the extent that the, provisions contained in such, bond resolution or ordinance
should be found to be inconsistent with the provisions hereof, these provision~ shall be' construed as controlling as between
the association and the,Government. . : ';! ,!" 'i '",' : :,' J 1"'1 ,,'! '; "
:'1; ,'C1!
tl ',I
;,
The vote was: Yeas
Absent
i) 1;' ~p" ;'J J'
"
(SEAL) By'
Title
. '
Title
" ' " CERTIFICATION
of District Carnnissioners:
I ;: i, ! ! . '" " ;.~ !: _
of the
I, " (;; .'; I \ .,: It: "i r I
has duly adopted this Resolution and caused
17th,.
.'
:: 19 84 .
;:.1
i.-,"," f;:'L~ o~ ~~.. i).',jj'.l? : i 11 H'i ,
I, the undersigned, as
Clerk
of the Ne~/Hanover County' Water and Se~r
District
" ',;:, J/o'fsuch Association is composed of
hereby certify that the
Board of District C~ssio~ers
five
members, of whom , constituting a quorum, were present at a meeting thereof duly called and
1 \ ;; ,~: '.. ~ /, .; \- : r,. 'j r" J V: I i.: .. t t'.:, i" r, ),' '( It t ( / ~, "
h Id th 17th d f ,Septeml::er 1984. th' tl":'''' "6'.." 'l"t... "d' " d
e on e ay 0 '.' " ", -'----; at h;; IUreg mg reso u IOn 'Was fl opte at
such meeting by the vote shown above; arid that said resolution has riot been rescinded or ame'nded in any way. " .
, Dated, this
17th
day of Septeml::er
'19 84....-.. -,-
, -,
! ~ '
" l'tU.S.GPO'1981.o.765-013/1585
i I \ J
, " I: r"ucie F. Sni th, Clerk to the Board
Title
USDA-FmHA
Form FmHA 4004
(Rev. 8-~9-79)
l'USl1lUrl .J
ASSURANCE AGREEMENT
(Under Title VI, CiyjJ Rights Act of 1964)
The New Hanover County Wlter and Se~ District
_______OOn_n.___n__n__n_nn._n__._._._____.uu_.u_u___.n._uu(;,~;;ie~-;;l-;e.~ipTi;;tjn.nn---nnmn-nnnnn-nnnn-nnn.-----un"_n__._____.n_n.___n ,
320. Chestnut Street, Wilmington, NC 28401
.__nn_nn_nnnnnn_n_u____nnnnn_nnnn_nn._.n___n.._.n._.___n--.----.7~(jdr~~.;Tn-----n-n-nn.n--..-nn-nn.------n-nn_nnnn_nn_n__unn__n..___n_u_ ,
("Recipient" herein) hereby assures the U S. Department of Agriculture that Recipient is in compliance with and will
continue to comply with Title VI of the Civil Rights Act of 1964 (42 USC 2000d et. seq.), 7 CFR Part IS, and Farmers
Home Administration regulations plOmulgated thereunder, 7 C.F.R. 91901.202. In accordance with that Act and the
regulations referred to above, Recipient agrees that in connection with any program or activity for which Recipient receives
Federal financial assistance (as such term is defined in 7 C.F.R. 914.2) no person in the United States shall, on the ground of
race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to
discrimination.
I. Recipient agrees that any transfer of any aided facility, other than personal property, by sale, lease or other
conveyance or- contract, shall be, and shall be made expressly, subject to the obligations of this agreement and
transferee's assumption thereof.
2. Recipient shall:
(a) Keep such records and ,submit to the Government such timely, complete, and accurate information as the
Government may determine to be necessary to ascertain our/my compliance with this agreement and the regulations.
(b) Permit access by authorized employees of the Farmers Home Administration or the U.S. Department of
Agriculture during normal business hours to such books, records, accounts and other sources of information and its
facilities as may be pertinent to ascertaining such compliance.
(c) Make available to users, participants, beneficiaries and other interested persons such information regarding the
provisions of this agreement and the regulations, and in such manner as the Farmers Home Administration or the
U.S. Department of Agriculture finds necessary to inform such persons of the protection assured them against
discrimina tion
3. The obligations of this agreement shall continue'
(a) As to any real property, including any structure, acquired or improved with the aid of the Fede,'al financial
assistance, so long as such real property is used for tl~e purpose for which the Federal financial assistance is made
or for another purpose which affords similar services or benefits, or for as long as the Recipient retains ownership or
possession of the property, whichever is longer.
(b) As to any personal property acquired or improved with the aid of the Federal financial assistance, so long as
Recipient retains ownership or possession of the property.
(c) As to any other aided facility or activity, until the last advance of funds under the loan or grant has been made.
4. Upon any breach or violation of this agreement the Government may, at its option:
(a) Terminate or refuse to render or continue financial assistance for the aid of the property, facility, project,
service or activity.
(b) Enforce .~vj~ agreement by suit for specific performance or by any other available remedy under the laws of
the..!JPiP~~'dlff:A't1"JJJ;, State in which the breach or violation occurs.
.. ~~ , COtL '"
Rights ~~~~att!s.pt.~rdl!~ ftp.~der this agreement shall be cumulative.
j ~ .l ,-~~11~f District, Camrissioners o~ th~
In wif/ter,\ v/1e .~er--.CQunty:nWateI--ana--..se~.-12J.s.trJ..ctu.n.-.-m.----.--.-.----.mm_m._ on this
.. . .:' (name of recipien t)
date i1~aO d,t I ~,be Clxecuted by its duly authorized officers and its seal affixed here~to or, if a natural
perso,\ ~ ~~_ _ t~is1gr~ment. NEW~COUNTY~AND S DISrRlcr
..~. 7'"
\~ ~..::;fffi1ifi;;s _....:p ~i By: ._u__u_m_ mm mom m'._ __ _~ _~. _Om m._._'..,______
:'!, 7 kA .......... S'\ ...... eClplent
(S r:-'I}"LY SEWEl\ \)'\ ,.l' Septeml::.er 17, 1984
~d~:-;:~~--Tiii,- -~-~-;;;;-::~~~~:-~~;~~~~~;;~~;~~!~~~
n_.nnn..____.._____nm_n_n_nnnnnnn__nnn_nn___n.____.____.----:R'e'aple';ii-
UIHu:.1J STA1~S U~l"'At<lM~NT UF AI.iRlCULTURE
Folm FHA 400~ 1
(Rev. 6-26-72)
"
FARMERS HOME ADMINISTRA nON
EQUAL OPPORTUNITY AGREEMENT
Thi s agreement, dated ......?~p~~E__,~.?L.J??._~!.,.....,...,....,...,....__....,.,...,.,.....'...,.........,.,.................,.......................,.. bet ween
the New Hanover County Water and SevYBr District
..... u -.-........- --...- --.-.-.. -. -..... -- .-.-.. -- -- -. - - -. ____........ ._______ _ _._ _... u .... .... -- -- -- _... ....._ __ ._._ __ __._...... ._._ _ _ ___ _._ _ _.
_...... _ _ _._..._ ........ __._ ".__. .._..... _._.. ... _._ _.._ _ _ __ u _. _. n _ _ u ___
(herein called "Recipient" whether one or more) and the Farmers Home Administration, United States Department of
Agriculture, pursuant to the rules and regulations of the Secretary of Labor (herein called the 'Secretary') issued under the
authority of Executive Order 11246, as amended, witnesseth:
In consideration of financial assistance (whether by a loan, grant, loan guaranty, or other form of financial assistance)
made or to be made by the Farmers Home Administration to Recipient, Recipient hereby agrees, if the cash cost of construction
work performed by Recipient or a construction contract financed with such financial assistance exceeds $10,000--unless
exempted by rules, regulations or orders of the Secretary of Labor issued persuant to Section 204 of Executive Order 11246 of
September 24, 1965.
1. To incorporate or cause to be incorporated into any contract for construction work, or modification thereof, subject
to the relevant rules, regulations, and orders of the Secretary or of any prior authority that remain in effect, which is paid
for in whole or in part with the aid of such financial assistance, the following "Equal Opportunity Clause":
During the performance of this contract, the contractor agrees as follows:
(a) The contractor will not discriminate against any employee or applicant for employment because of race, color,
religion, sex or national origin. The contractor will take affirmative action to, ensure that applicants are employed,
and that employees are treated during employment, without regard to their race, color, religion, sex or national
origin. Such action shall include, bur not be limited, to the following: employment, upgrading, demotion or transfer;
recruitment or recruitment advertising; layoff or termination; rates of payor o'ther forms of compensation; and
selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available
to employees and applicants for employment, notices to be provided by the Farmers Home Administration setting
forth the provisions of this nondiscrimination clause.
(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor,
state that all qualified applicants will receive consideration for employment without regard to race, color, religion,
sex or national origin.
(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining
agreement or other contract or understanding, a notice, to be provided by the Farmers Home Administration,
advising the said labor union or workers' representative of the contractor's commitments under this agreement as
required pursuant to section 202(3)- of Executive Order 11246 of September 24, 1965, and shall post copies of the
notice in conspicuous places available to employees and applicants for employment.
(d) The contractor wilJ comply with all provisions of Executive Order 11246 of September 24, 1965, and of all rules,
regulations and relevant orders of the Secretary of Labor and of any prior authority which remain in effect.
(e) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965,
rules, regulations, and orders, or pursuant thereto, and will permit access to his books, records, and accounts by the
Farmers Home Administration, Office of Equal Opportunity, U. S. Department of Agriculture, and the Secretary of
Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
(f) In the event of the contractor's noncompliance with the Equal Opportunity (Federally Assisted Construction) clause
or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in
whole or in part and the contractor may be declared ineligible for further Government Contracts or Federally Assisted
construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965,
and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of
September 24, 1965, OT by rule, regulation or order of the Secretary of Labor, or as provided by Law.
(g) The contractor will include the provisions of this Equal Opportunity (Federally Assisted Construction) clause in
every subcontract or purchase order, unless exempted by the rules, regulations, or orders of the Secretary of Labor
issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will
be binding upon each such subcontractor or vendor. The contractor will take such action with respect to any
subcontract or purchase order as the Farmers Home Administration may direct as a means of enforcing such
provisions, including sanctions for noncompliance: Provided, however, that in the event the contractor becomes
involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the
Farmers Home Administration, the contractor may request the United States to enter into such litigation to protect
the interest of the United States.
Position 6
FHA 400-1 (Rev. 6-26-72)
2. To be bound by the provisions of the Equal Opportunity Clause in construction work performed by Recipient and paid
fof in whole or in part with the aid of such financial assistance.
3. To notify all prospective contractors to file the required 'Compliance Statement', Form FHA 400-6, with their bids.
4. Form AD-425, Instructions to Contractors, will accompany the notice of award of the contract.
Bid conditions for all nonexempt Federal and Federally assisted construction contracts require inclusion of the appropriate
"Hometown" or "Imposed" plan affirmative action and equal employment opportunity requirements. All bidders must comply
with the bid conditions contained in .the invitation to be considered responsible bidders and hence eligible for the award.
5. To assist and cooperate actively with the Farmers Home Administration and the Secretary in obtaining the compliance
of contractors and subcontractors with the provisions of the Equal Opportunity Clause and the said rules, regulations, and
orders, to obtain and furnish to the Farmers Ho'me Administration and the Secretary, Form AD-560, Certification of
Nonsegregated Facilities, to submit the Monthly Manpower Utilization Report, Optional Form 66, as required and such other
information as they may require for the supervision of such compliance, and to otherWise assist the Farmers Home
Administration 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 HIe 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 extending 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.
Witness the due execution hereof by Recipient on this, the date first above written.
Recipient
Recipient
(CORPORATE SEAL)
NEW HANOVER COUNl'Y WATER AND SEWER
Ol~'l'lUC'l'
au
Chairman
Board of District Commissioners
"'t~'ff
~ Co ;;;, ~emy
t-~ .._..,......~. VA... '"
&.~v,.. '~~!!~. .~~ \
""f' . \~":": ':.
, "'~ ~ ':.
.. *: -:l~' ~~
\f!. ) i If- :
~ \. ~_:.-/ l i
\ l' .. 1M AbW'''a"t9 .... ~ $
~ .. ~1 .. ~ ~
lI: 4...#_ .. .- ,<('\.' ..
It,/. 71y tJ ......... ~,~ ......
1"11 SEWER ~'\ ..........
"I, \"....
"'".IIU&&aa
By
TERMINATION OF THIS AGREEMENT.
., This Agreement may be terminated for cause in the event of default on the part of the Grantee as provided in paragraph
I above or for convenience of the Grantor and Grantee prior to the date of completion of the rant purpose. Termination for
convenience will occur when both the Grantee and Grantor agree that the continuation 0 the project will not produce
beneficial results commensurate with the further expenditure of funds.
IN WITNESS WHEREOF Grantee on the date first above written has caused these presence to be executed by its duly
au t h orized ..~~~.~n~r.~.~~..~~E~n?~- .!?~~~E~_0:.S~~~~~~~.~.~~~~~-~---.n .n_n._n_n.n._____..___.nn_.n___. n__ __n._..n.n_n.
and attested and its corporated seal affixed-by its duly authorized __~_~_~~~n!:9---!:P-:~--~~-?--~-L!?-~~~t~-----n.n.n.n---
corrmissioners
n' _ __n__ _. n - n' - __n.n.n______ - ___ - - __ _. n - - ___ - .n_ nU __. - __ - _. n - n. n - - - - - - ___ - _.. n__ .._ - _n - nn - - -- - n_.. n --' - __n -- -- n" n - - __n_ --.
n -- -- n u__ ____u n -- _.n -- -- ., -- -.- - --" --. -. -.
:~,~~------------------
~li~ ~~~.'''l;, ----<:
--'---'--73,8 I-"'~~-\ Q.\~n--.-------n--------u--
~. , ~..
.' . A ~. ~:.
: . ~ < ~ :
; ~ ,Jli.) ~ ~ :
._ :;.r""" ...
':. ~ ;, ~'" ;b5:7l.t&lE:
~ ;:;:+ , .._. ~:'/---./ ;1; ~ ..
~.. ~ ',!'tI'1fij/.{:'jj~~li.,!' ... r. :
..'F7 " 'JI!.9I!sl./ti TS . ~ ~
.... .A 11. ..> ."~ t'
',711 '",,,,.-- B"'..;;"
""'/) SfW[~ ~~. ~;l'
.,,' ++~
'" II.. It. ~~,,,
This instrument has been pre-audited
in the manner required by the
Local Government Budget and Fiscal
Control Act.
Andrew J. Atkinson
County Finance Director
~_~--~~~--:_.nn-- J~~~~
By .~- ___ __n_____n___ ~---- -- __nmi.n---.
Claud orShields, Jr., Chairman
Board of District Commissioners
-----.--------..----..-----..-------------------------......----..........----......-----------....-----
(Title)
UNITED STATES OF AMERICA
FARMERS HOME ADMINISTRATION
By _______mn______________________n_n____________________________________----
-------------------------------------------------------------------------------
(Title)
Approved as to form andl legality:
Robert W. Pope
County Attorney
~ 1 ~;
,41-29-79)
UNiTED SIAIES Vl:.PAIUMtN'1 uF AGIHCULTUKE
FARMERS HOME ADMINISTRAT,ION
':.
'ASSOCIATION WATER OR SEWER SYSTEM GRANT AGREEMENT
THIS AGREEMENT dated __..m_~P!:~En~.?m_____m_____mmm_m___umm ,19 .~.1_, between .~m~-i::..-.mm-.mm.mmm.-
m.~~__~_~_.~~~~En9.?~!:Y.__~~~En~~m~~~n_~~.r:>.!:~~.?!:_~mnmmm_n____m_______m._._nm._.~______.__._mm____.nnm_.
, . ,
a public corporation organized and operating under ~~_c::~~___~___?~___~~!:!:~_.~.<?g~~_~~~~.!__~!:_~'!:~_~.L__.____
Chapter l62A
(Authorizing Statute)
herein called :'Grantee," and the United States of America acting through the Farmers Home Administration, Department of
Agriculture, herein called "Grantor," WITNESSETH:
WHEREAS
Grantee has determined to undertake a project of acquisition, construction, enlargement, or capital improvement of a
(water) (sewer) system to serve the area under its jurisdiction at an estimated cost of $ .!?L~Q.9.!.Q.9.Qmm.m_ and has duly
authorized the undertaking of such project.
Grantee is able to finance not more than $ }.?!.~~.~!..g_Q2__________ of the development costs thr~>ugh revenues, charges,
taxes or assessments, or funds otherwise available to Grantee resulting in a reasonable user charge.
Said sum of S ___~~!..???~.Q~gm~_____ has been committed to a~d by Grantee for such project development costs.
Grantor has agreed to grant the Grantee a sum not to exceed $ .m~}~_~.QQ.9mmnm_n or n___.?...I!.m_____________m. percent of
said development costs, whichever is the lesser, subject to the terms and conditions established by the Grantor. Provided,
however, that the proportionate share of any grant funds actually advanced and not needed for grant purposes shall be reo
turned immediately to the Grantor. The Grantor may terminate the grant in whole, or in part, at any time before the date of
completion, whenever it is determined that the Grantee has failed to comply with the conditions of the grant. ,
NOW, THEREFORE, In consideration of said grant by Grantor to Grantee, to be made pursuant to Section 306 (a) of
the Consolidated Farm and Rural Development Act for the purpose only of defraying a part not to exceed mI!.!~___mm___
percent of the development costs, as defined by applicable Farmers Home Administration instructions.
GRANTEE AGREES THAT GRANTEE WILL:
1,1'
A.' Cause said project to be constructed within the total sums available to it, including said grant, in accordance with the
project plans and specifications and any modifications thereof prepared ~y Grantee and approved ~y Gran~or.
I
B. Permit periodic inspection of the construction by a representative of Grantor during construl;tion.
, '
C. Manage, operate and maintain the system, including this project if less than the whole of said system, continuously in
an efficient and economical manner. ' '", . .~,"' .. r. ' .;
"t.r!
D. Make the servIces of said system available within its capacity to all persons in Grantee'~ service area without
discrimination as to race, color, religion, sex, national origin, age, marital status, or physical or.m~ntal handicap (possess
capacity to enter into legal contract for services) at reasonable charges, including assessments, taxes, or fees in accordance
with a schedule of such charges, whether for one or more classes of service, adopted by resolution date ____________"_____._m_..nn'
19 ____,___, as may be modified from time to time by Grantee. The initial rate schedule must be approved by Grantor. There-
after, Grantee may make such modifications to the rate system as long as the rate schedule remains reasonable and
nondiscriminatory .
l
'--"
I
J
!,
3.. Effective control over and accountability for all funds, property and other assets. Grantees shall adequately
safeguard' all such assets and shall assure that they are used solely for authorized purposes.
4. Accounting records supported by source documentation.
N. Retain financial records, supporting documents, statistical records, and all other records pertinent to the grant for a
period of at least three years after rant closing except that the records shall be retained beyond the three-year period if
audit findings have not been resolve . MicrofUm copies may be substituted in lieu of original records. The Grantor and the
Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books,
documents, papers, and records of the Grantee's government which are pertinent to the specific grant program for the
purpose of making audits, examinations, excerpts and transcripts.
O. Provide information as requested by the Grantor to determine the need for and complete any necessary Environ-
mental Impact Statements.
P. Provide an audit report prepared in sufficient detail to allow the Grantor to determine that funds have been used in
compliance with the proposal, any applicable laws and regulations and this Agreement.
Q. Agree to account for and to return to'Grantor interest earned on grant funds pending their disbursement for program
purposes when the Grantee is a unit of local government. States and agencies or instrumentalities of states shall not be held
accountable for interest earned on grant funds pending their disbursement.
R. Not encumber, transfer or dispose of the property or any part thereof, furnished by the Grantor or acquired wholly
or in part with Grantor funds without the written consent of the Grantor except as provided in item K above.
S. To include in all contracts for construction or repair a provision for compliance with the Copeland "Anti-Kick
Back" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR, Part 3). The Grantee shall report
all suspected or reported violations to the Grantor.
T. In construction contracts in excess of $2,000 and in other contracts in excess of $2,500 which involve the employ-
ment of mechanics or laborers, to include a provision for compliance with Sections 103 and 107 of the Contract Work Hours
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 -CFR, Part 5).
U. To include in all contracts in excess of $100,000 a provision that the contractor agrees to comply with all the
requirements of Section 114 of the Clean Air Act (42 U.S.c. ~1875C-9) and Section 308 of the Water pollution Control Act
(33 U.S.c. ~1318) relating to inspection, monitoring, entry, reports, and information, as well as all other requirements
specified in Section 114 of the Clean Air Act and Section 308 of the Water pollution Control Act and all regulations and
guidelines issued thereunder after the award of the contract. Such regulations and guidelines can be found in 40 CFR 15.4
and 40 FR 17126 dated April 16, 1975. In so doing the Contractor further agrees:
1. As a condition for the award of contract, to notify the Owner of the receipt of any communication from the
Environmental Protection Agency (EP A) indicating that a facility to be utilized in the performance of the contract is
under consideration to be listed on the EP A list of Violating Facilities. Prompt notification is required prior to contract
award.
2. To certify that any facility to be utilized in the performance of any nonexempt contractor subcontract is not
listed on the EPA list of Violating Facilities pursuant to 40 CFR 15.20 as of the date of contract award.
3. To include or cause to be included the above criteria and the requirements in every nonexempt subcontract and
that the Contractor will take such action as the Government may direct as a means of enforcing such provisions.
As used in these paragraphs the term "facility" means any building, plan, installation, structure, mine, vessel or other floating
craft, location, or site of operations, owned, leased, or supervised by a Grantee, cooperator, cO'?tractor, or subcontractor, to
be utilized in the performance of a grant, agreement, contract, subgrant, or subcontract. Where'a location or site of
operation contains or includes more than one building, plant, installation" or structure, the entire location shall be deemed
to be a facility except where the Director, Office of Federal Activities, Environmental Protection Agency, determines that
independent facilities are co-located in one geographical area.
GRANTOR AGREES THAT IT'
A. Will make available to Grantee for the purpose of this Agreement not to exceed $ __~~~_,_QQ_QJlQ_Q_____uu_m__________________
which it will advance to Grantee to meet not to exceed ..7_!Jl-u___ percent of the development costs of the project
in accordance with the actual needs of Grantee as determined by Grantor.
B. will assist Grantee, within available appropriations, with such technical assistance as Grantor deems appropriate in
planning the project and coordinating the plan with local official comprehensive plans for sewer and water and with any
State or area plans for the area in which the project is located.
C. At its sole discretion and at any time may give any consent, deferment, subordination, release, satisfaction, or
termination of any or all of Grantee's grant obligations, with or without valuable consideration, upon such terms and
conditions as Grantor may determine to be (1) advisable to further the purfose of the grant or to protect Grantor's fmancial
interest therein and (2) consistent with both the statutory purposes 0 the grant and the limitations of the statutory
authority under which it is made.
*' u. S. GOVERNMENT PRINTING OFFICE, 1 979 - 6 6 6 - 7 e 1
.,;.
TER~INATION OF THIS AGREEMENT.
This Agreement may be terminated for cause in the event of default on the part of the Grantee as provided in paragraph
I'above.or for convenience of the Grantor and Grantee prior to the date of completion of the rant purpose. Termination for
convenience will occur when both the Grantee and Grantor agree that the continuation 0 the project will not produce
beneficial results commensurate with the further expenditure of funds.
IN WITNESS WHEREOF Grantee on the date first above written has caused these presence to be executed by its duly
au thorized ..~~~_~..~~..~.~~oo.??~~..9.~..~~~!:~~.0:..~~~~.~~~!:l:~~.!?..........u......um.m.u..............u__.000.mu.._.__.
and attested and its corporated seal affixed by its dul~ authorized oo~_~~~oo!:9.oo!:!.J:~..~~.<:'!__~.:f:oo!?~~~~~mmmoomooo.
Corrmissioners
:~~_~~_________uuu_uu____
~li~ ~~lir~~""I;. ..... ':
.________(:;~? ;}~oo~-.~.'~~~~~~.m----.ooooo.oo--m--__
~' ,~.'~..
.-h: I'. ." (?:.
:~ : "')':
. > < -
:~ "'o';':d);*S
.~ ~ tt ~~~"1~ /$ ,i :
~ - ~ I, !'t@tf.J.Jt;/7l f:. ~
.. 7~ 'tl!:'9&,v,f TO . ~:
.... A II, ,- ."fi ~
.., 71/1 'hl6l".' S:";.. II"
"',#,/J SfW[~ ~~' ;.~......
##, " ff~
"""II~~~~I.p-
This instrument has been pre-audited
in the manner required by the
Local Goverrnrent Budget and Fiscal
Control Act,
Andrew J. Atkinson
County Finance Director
\_.r
~u~__~~~oo:.m__ __ .~~~~Qr
By .~. 000 mooo__oo__m~____ __ .ooomIooooo.
Claud 0/rShields, Jr., Chairman
Board of District Commissioners
(Title)
UNITED STATES OF AMERICA
FARMERS HOME ADMINISTRATION
By _____.000.___.________________0000000___________________________.._____________
(Title)
,.
Approved as to form and legality:
Robert w. Pope
County Attorney
I "
: r
.:
-
~, USDA-FmHA
Form, FmHA 442-7
(Rev. 8-1"7:.-79)
Position 3
Schedule 1
OPERATING BUDGET
*
i\j;;' mie ; Address
New Hanover Count}" Water & 80MO,. T'U . f'to 320 Chestnut Street. Wilmington. NC
Applicant Fiscal Year County I State (Including ZIP Code)
From Julv 1. To June 30 New Hanover NC 38401
19 85 771/84 19 86 7/1/85 1987 7/1/86 1988 7/1/87 First Full Year
OPERATING INCCME (1) (2) (3) (4 ) (5)
1. Service. Charge & r,.c 1,000,000 1,067.398 1,088,398
2. G.C. OutRide AreR T 688,699 604,301 604,301
3.
4,
5. Miscellaneous
6. Less: Allowances and ( ) ( ) ( ) ( ) ( )
Deductions
7. Total Operatin~ Income -0.". -0- 1-688.699 1 671-699 1.692 699
(Add Lines 1 trough 6)
OPERATING EXPENSES
8. Salaries & Soc. Sec. 40,000 80,200 80,200 80,200
9. Office Expense 5,000 15,000 15,000 15,000
10. Transportation 3,000 10 , 000 10.000 10.000
11. Electricity 3,000 12,500 12.500 12.500
12. Miscellaneous 5.000 25.000 25.000 25.000
13. Bulk Treatment Chg. 395.000 395.0.00 395.000
14. Interest (Open Markl t Bond) 468.000 468.000 468.000
15. Interest (FmHA) 553.158 553.158 553.158
16. Depreciation 330,000 330,000 330,000
17. Total Operating Expense -0- 56,000 1,888,858 1,888,858 1,888,858
(Add LlI1es 8 trough 16)
18. NET OPERATING INCOME -0- (56,000) (200,159) (217,159) (196,159)
(LOSS) (Line 7 less 17)
NONOPERATING INCOME
19, Interest-B.A.Notes 860,000 333.000
20.
21. Total Nonogerating Income 860.000 333.000 -0- -0- -0-
(Add 19 an 20)
22. NET INCOME (LOSS~
(Add Lines 18 and 21
(transfer to line A Schedule I 860,000 277 ,000 (200,159) (212.159) (196,159)
2\
*
Attest:
and Projected Cash F w Approved by Governing Body
9p//fY
Date
rtPI?tf
Dale
* G.C.= General Contribution
.J . .
,"'instructions - .Op~ratin.g Budget edule I
litis form h to be prepar,ed by die Applicant and is to include data for each year ,'from loan closing through the first full year of
operatlon~' E~ample: If only two colums are required, use columns four (4) and five (5).
Incpme :;Ind expense Items:
All Mta entered should be on the same basis as the Applicant's Accounting records, Le., cash basis, accrual basis, ete..
Operating Income:
lines 1-5 List types of income as appropriate.
line 6 - Allowances and Deductions:
(Pertains generally to Health Care Institutions, and represents the difference between Gross Income and Amounts
Received or to be Received from patients and third party payors)
Operating Expenses
lines 8-14 List types of expenses as appropriate.
line 15 - Interest FmHA
(interest expense incurred on FmHA note(s)).
line 16 - Depreciation
(total depreciation expense for the year)
line 18 - Net Operating Income (Loss))
(this amount represents the net operating income or loss before adding income not related to operations below)
Non Operating Income
lines 19-20 (indicate items of income derived from sources other than regular activities, Ex: interest earned)
line 22 - Net Income (Loss)
(this amount is also transferred to item A Schedule 2 Projected Cash Flow Statement)
Instructions - Projected Cash Flow, Schedule 2
This form is used to Project the Flow of Cash by the Applicant for each year, from loan closing through the fust full year of operation.
Use the same number of columns as used on the Operating Budget, Schedule I. These Cash Flow Projections are important in
determining the adequacy of cash to cover operating expenses, transfers to debt payment, reserve accounts, etc..
Cash Basis Accounting
Applicants who maintain their records strictly on the cash basis of accounting and have no Accounts Receivable and Accounts Payable,
may only need to complete the following line items: A, B-1, C-1, E-l and E-3, F and G.
Line Item Instructions
line A Bring forward the income or loss as entered on line 22, schedule 1.
line B Add back any depreciation or other non cash items included on Schedule 1, Operating Budget.
line C Complete items C-I through C-6 as appropriate, for item changes which provide for increase in cash balances.
NOTE: Do not include changes in cash Accounts in Current Assets of item C4. Lines C-3 and C4 will in-
dicate the changes in Working Capital (Current Assets and Current Liabilities, Exclusive of Cash.)
Enter the Net Total of all A, Band C items.
Complete items E-I through E-6 as appropriate for items for which cash was expended.
Enter the Beginning Cash Balance(s) for the period.
The total of item D less E-6 plus F will be the Ending Cash Ba1ance(s). This total will be reconciled by balances in the
various accounts, Le., construction, revenue, debt, etc..
line D
line E
line F
line G