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Jul 29, 1999 ... To date the Commission has not received this filing. Please make the filing, referencing the case number 1999-287, not later than. 15 days from ...

CASE NUMBER:

CASE NUMBER:

11)”.

HISTORY INDEX FOR CASE: 1999-287 JESSAMINE-SOUTH ELKHORN WATER DISTR Construct, Finance, Rates; 278.023

KY. PUBLIC SERVICE COMMISSION AS OF : 02/08/01

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IN THE MATTER OF THE APPLICATION OF THE JESSAMINE-SOUTH ELKHORN WATER DISTRICT FOR APPROVAL TO PROCEED WITH PROJECT CONSTRUCTION PRIMARILY FINANCED BY U.S. DEPARTMENT OF AGRICULTURE AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND TO CHANGE RATES IN CONJUNCTION WITH SUCH PROJECT SEQ

NBR 0001 0002 0003 0004 0005 0006 MOO01

ENTRY DATE

REMARKS

Application. Acknowledgement letter. Filing deficiencies letter, response due 8/4/99. Deficiencies cured letter Final Order approving construction, financing and rates. First Reminder Letter Sent. 11/13/2000 JOHN HORNE/JESSAMINE SOUTH ELKHORN-REPLY TO LETTER OF OCTOBER 18, 2000 07/02/1999 07/06/1999 07/20/1999 07/21/1999 07/29/1999 10/18/2000

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Home Engineering, Inc.

216 SOUTH MAIN STREET.NICHOLASVILLE, KENTUCKY40356. (859)885*9441 OFAX (859)885-5160 November 6,2000

Thomas M. Dorman Executive Director, Public Service Commission 2 11 Sower Boulevard PO Box 615 Frankfort, KY 40602-0615

PUBLIC SERVICE CoMMISsIm

Re:

Case No. 1999-287 Southeast Rural Water Project Jessamine South Elkhom Water District Jessamine County, KY

Dear Mr. Dorman: The Commissioners of the Jessamine South Elkhom Water District ask that I reply to your letter of October 18,2000 regarding the reminder of filing as-built drawings for the referenced project. Please be advised that this project is still under construction with anticipation that substantial completion will occur within the next 30-45 days. Upon completion of the punch list and acceptance by the owner of the project, we will at that time, forward a statement of completion and acceptance along with the copy of the as-built drawings. In the meantime, if there is any additional information required, or you wish to discuss this matter, please feel free to contact me at (859)-885-9441.

Sincerely,

Home P.E., P.L.S.

cc:

Glenn T. Smith Jerry Haws Engr/3253 Engr/32 12 con-.

Q:\ProjectDir~sewd\Wo3253~rmanAsBuilt.ltr

ENGINEERS

LAND SURVEYORS

PLANNERS

&me

0 Engineering, Inc.

216 SOUTH MAIN STREET.MCHOLASVILLE,KENTUCKY40356. (859)885-9441O F A X(859)885-5160 November 6,2000

RECEIVED

Thomas M. Dorman Executive Director, Public Service Commission 2 11 Sower Boulevard PO Box 615 Frankfort, KY 40602-0615

NOV 1 3 2000 PUBLIC SERVICE CoMMISsIm

Re:

Case No. 1999-287 Southeast Rural Water Project Jessamine South Elkhorn Water District Jessamine County, KY

Dear Mr. Doman: The Commissioners of the Jessamine South Elkhorn Water District ask that I reply to your letter of October 18,2000 regarding the reminder of filing as-built drawings for the referenced project. Please be advised that this project is still under construction with anticipation that substantial completion will occur within the next 30-45 days. Upon completion of the punch list and acceptance by the owner of the project, we will at that time, forward a statement of completion and acceptance along with the copy of the as-built drawings. In the meantime, if there is any additional information required, or you wish to discuss this matter, please feel free to contact me at (859)-885-9441.

Sincerely,

Home P.E., P.L.S.

JGWjt cc:

Glenn T. Smith Jerry Haws Engr/3253 Engr/32 12 Corr.

Q:VrojeccDir~sewd\Wo3253~rmanAsBuilt.ltr

ENGINEERS

LAND SURVEYORS

PLANNERS

Paul E. Patton, Governor Ronald B. McCloud, Secretary Public Protection and Regulation Cabinet Thomas M. Dorman Executive Director Public service Commission

COMMONWEALTH OF KENTUCKY PUBLIC SERVICE COMMISSION 211 SOWER BOULEVARD POST OFFICE BOX 615 FRANKFORT, KENTUCKY 40602-0615 www.psc.state. ky.us (502)564-3940 Fax (502)564-3460

Martin J. Hueismansr Chairman Edward J. Holmes Vice Chairman Gary W. Gillis Commissioner

October 18,2000

Ms. Eleanor Blakeman Office Manager Jessamine-South Elkhorn Water District 117 South Main Street Nicholasville, Kentucky 40356 Re: Case No. 1999-287, First Reminder Letter Dear Ms. Blakeman: The Commission entered the enclosed Final Order in this case on July 29, 1999. The Commission ordered that Jessamine District shall file a copy of the “as-built” drawings and a certified statement that the construction has been satisfactorily completed in accordance with the plans and specifications within 60 days of the substantial completion of the construction. To date the Commission has not received this filing. Please make the filing, referencing the case number 1999-287, not later than 15 days from the date of this letter. If you have questions concerning this letter, please contact Jess Helton, of the Filings Division, at 502-564-3940, extension 278. Otherwise, please mail the required filing to Thomas M. Dorman, Executive Director, Public Service Commission, 21 1 Sower Blvd., Post Office Box 615, Frankfort, Kentucky 40602. Sincerely,

~

Stephanie Bell Secretary of the Commission Enclosure CC: Parties of Record

& EDUCATION

PAVS

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AN EQUAL 0PPORTLR.IITY EMPLOYER WID

COMMONWEALTH OF KENTUCKY

PUBLIC SERVICE COMMISSION 730 SCHENKEL LANE POST OFFICE BOX 615 FRANKFORT, KY. 40602 (502) 564-3940

CERTIFICATE OF SERVICE RE: Case No. 99-287 JESSAMINE-SOUTH ELKHORN WATER DISTRICT I, Stephanie Bell, Secretary of the Public Service Commission, hereby certify that the enclosed attested copy of the Commission's Order in the above case was served upon the following by U.S. Mail on July 29, 1999. Parties of Record: Eleanor M. Blakernan Office Manager Jessamine-South Elkhorn Water District 117 South Main Street Nicholasville, KY. 40356 Honorable Bruce E. Smith Attorney for Jessamine-South W.D. Moynahan, Irvin & Smith, P.S.C. 110 North Main Street Nicholasville, KY. 40356

Secreta*

SB/hv Enclosure

of thewmmission

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COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION

In the Matter of:

THE APPLICATION OF THE JESSAMINE-SOUTH ELKHORN WATER DISTRICT FOR APPROVAL TO PROCEED WITH PROJECT CONSTRUCTION PRIMARILY FINANCED BY U.S. DEPARTMENT OF AGRICULTURE AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND TO CHANGE RATES IN CONJUNCTION WITH SUCH PROJECT

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CASE NO, 99-287

1 1 )

O R D E R On July 21 , 1999, Jessamine-South Elkhorn Water District ("Jessamine District") submitted an application for a Certificate of Public Convenience and Necessity to construct a $3,433,400 waterworks improvement project, for approval of its plan of financing for this project, and for adjustments to its water service rates. This project will provide new service to 309 additional customers. Project funding is a $2,301,000 bond issue to be purchased pursuant to an agreement with the U. S. Department of Agriculture's Rural Development ("RD"), a $999,700 Community Development Block Grant ("CDBG), a $30,000 contribution from the Jessamine County Fiscal Court, and a $102,700 contribution from the Applicant.'

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In its application, Jessamine District states that the proposed project would serve an additional 343 customers and would be financed through the issuance of $1,901,000 of bonds, a $999,700 grant from the Department of Housing and Urban Development, a $400,000 loan from a local bank, $72,600 from customer contributions, and $30,000 in contributions from Jessamine District and Jessamine County Fiscal Court. As the application conflicts with terms of the Rural Development's Letter of Conditions, the Commission has used the project description and proposed financing arrangements contained in the Letter of Conditions.

Jessamine District’s application was made pursuant to KRS 278.023, which requires the Commission to accept agreements between water utilities and the U. S. Department of Agriculture or the U. S. Department of Housing and Urban Development and to issue the necessary orders to implement the terms of such agreements within 30 days of satisfactory completion of the minimum filing requirements. Given that minimum filing requirements were met in this case on July 21, 1999, KRS 278.023 does not grant the Commission any discretionary authority to modify or reject any portion of this agreement. IT IS THEREFORE ORDERED that:

1.

Jessamine District is hereby granted a Certificate of Public Convenience and

Necessity for the proposed construction project. 2.

Jessamine District’s proposed plan of financing with RD is accepted.

3.

Jessamine District is authorized to issue bonds not to exceed $2,301,000.

4.

Jessamine District shall file a copy of the “as-built” drawings and a certified

statement that the construction has been satisfactorily completed in accordance with the contract plans and specifications within 60 days of the substantial completion of the construction certificated herein.

5.

The rates set out in Appendix A, which is attached hereto and incorporated

herein, are the rates approved for service rendered on and after the date of this Order.

6.

Jessamine District shall submit its revised tariff setting out the rates in

Appendix A within 30 days of the date of this Order.

7.

Three years from the effective date of this Order Jessamine District shall file

an income statement, along with any pro forma adjustments, in sufficient detail to

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demonstrate that the rates approved herein are sufficient to meet its operating expenses and annual debt service requirements. Nothing contained herein shall be deemed a warranty of the Commonwealth of Kentucky, or any agency thereof, of the financing herein accepted. Done at Frankfort, Kentucky, this 29th day of July, 1999.

By the Commission

ATTEST:

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Executi+ D i r e c w

APPENDIX A APPENDIX TO AN ORDER OF THE KENTUCKY PUBLIC SERVICE COMMISSION IN CASE NO. 99-287 DATED JULY 2 9 , 1 9 9 9 The following rates and charges are prescribed for the customers in the area served by Jessamine-South Elkhorn Water District. All other rates and charges not specifically mentioned herein shall remain the same as those in effect under authority of the Commission prior to the effective date of this Order. Monthlv Water Rates

3/ 4” x 5/8” Meter First Next Next Next Next Over

2,000 gallons 2,000 gallons 2,000 gallons 10,000 gallons 8,000 gallons 24,000 gallons

$21.00 4.85 4.75 4.65 4.55 4.45

Minimum bill per 1,000 gallons per 1,000 gallons per 1,000 gallons per 1,000 gallons per 1,000 gallons

1 Meter First Next Next Over

10,000 gallons 6,000 gallons 8,000 gallons 24,000 gallons

$ 58.80 4.65 4.55 4.45

Minimum bill per 1,000 gallons per 1,000 gallons per 1,000 gallons

2” Meter First Over

24,000 gallons 24,000 gallons



$123.10 Minimum bill 4.45 per 1,000 gallons

A $6.50 per month surcharge will be assessed to all new users served by the water expansion project.

COMMONWEALTH OF KENTUCKY

PUBLIC SERVICE COMMISSION 730 SCHENKEL LANE POST OFFICE BOX 615 FRANKFORT, KY. 40602 (502) 564-3940

July 21, 1999

Eleanor M. Blakeman Office Manager Jessamine-South Elkhorn Water District 117 South Main Street Nicholasville, KY. 40356 Honorable Bruce E. Smith Attorney for Jessamine-South W.D Moynahan, Irvin & Smith, P . S . C . 110 North Main Street Nicholasville, KY. 40356

RE: Case No. 99-287 JESSAMINE-SOUTH ELKHORN WATER DISTRICT The Commission staff has reviewed your response of July 21, 1999 and has determined that your application in the above

case now meets the minimum filing requirements set by our regulations. Enclosed please find a stamped filed copy of the first page of your filing. This case has been docketed and will be processed as expeditiously as possible. If you need further information, please contact my staff at 502/564-3940.

Stephanie Bell Secretary of the Commission

SB/hv Enclosure

BEFORE THE PUBLIC SERVICE COMMISSION

In the matter of the Application of the Jessamine-South Elkhorn Water District For approval to proceed with project construction primarily financed by U.S. Department of Agriculture and the U.S. Department of Housing and Urban Development and to change rates in conjunction with such project.

JUL 2 1 1999 PUBLIC SERVICE COMMISSION

APPLICATION Pursuant to 807 KAR 5:069, Jessamine-South Elkhorn Water District (“Applicant”) petitions the Kentucky Public Service Commission (“Commission”) as follows: 1.

The Applicant’s full name is Jessamine-South Elkhorn Water District

(formerly Lexington-South Elkhorn Water District) and its post ofice address is 117 South Main Street (formerly 200 West Maple Street), Nicholasville, KY 40356. The applicant is not a corporation, but rather an entity created under KRS Chapter 74. This Application is based upon the installation of 40 miles of six (6”)inch water line to serve approximately 334 residences and nine (9) commercial establishments in an area generally described as southeastern Jessamine County. Of the approximate 343 new customers, 65% are classified as LMI (low to middle income).

Additionally, two,

100,000 gallon water storage facilities (i.e., standpipes) will be constructed within the

service area to meet peak demands for water. The sites for these standpipes have already

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COMMONWEALTH OF KENTUCKY PUBLIC SERVICE COMMISSION 730 SCHENKEL LANE POST OFFICE BOX 615 FRANKFORT, KENTUCKY 40602

www.psc.state.ky.us Paul E. Patton Governor

(502) 564-3940 Fax (502) 564-3460

Ronald B. McCioud, Secretary Public Protection and Regulation Cabinet Helen Heiton Executive Director Public Servlce Commission

July 20, 1999

Ms. Eleanor M. Blakeman Office Manager Jessamine-South Elkhorn Water District 117 South Main Street Nicholasville, Kentucky 40356 Re:

Case No. 99-287 Filing Deficiencies

Dear Ms. Blakeman:

I

The Commission staff has reviewed your application in the above case. This filing is rejected pursuant to 807 KAR 5:001, Section 2, for the reasons set forth below. These items are either required to be filed with the application or to be referenced in the application if they are already on file in another case or will be filed at a later date. Filing deficiency pursuant to KRS 322.340:

At least one copy of preliminary and final engineering report shall be signed, sealed, and dated by a registered professional engineer. The statutory time period in which the Commission must process this case will not commence until the above-mentioned information is filed with the Commission. You are requested to file six copies of this information (unless otherwise noted) within 15 days of this letter. If you need further information, please contact James Rice of my staff at 502-564-3940, extension 41 1. Sincerely,

Secretary of the Commission hv cc: Parties of Record

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AN EQUAL OPPORTUNITYEMPLOYER M/F/D

COMMONWEALTH OF KENTUCKY

PUBLIC SERVICE COMMISSION 730 SCHENKEL LANE POST OFFICE BOX 61 5 FRANKFORT, KY. 40602 (502) 564-3940

July

6, 1999

Eleanor M. Blakeman Office Manager Jessamine-South Elkhorn Water District 117 South Main Street Nicholasville, KY. 40356 Honorable Bruce E. Smith Attorney for Jessamine-South W.D. Moynahan, Irvin & Smith, P.S.C. 110 North Main Street Nicholasville, KY. 40356

RE: Case No. 99-287 JESSAMINE-SOUTH ELKHORN WATER DISTRICT (Construct, Finance, Rates; 278.023) This letter is to acknowledge receipt of initial application in the above case. The application was date-stampkd received July 2, 1999 and has been assigned Case No. 99-287. In all future correspondence or filings in connection with this case, please reference the above case number. If you need further assistance, please contact my staff at 502/564-3940.

Sincerelv,

Stephanie Bell Secretary of the Commission

SB / lnh

I I I I I I 1 I I I I I I I I I 1 1

BEFORE THE PUBLIC SERVICE COMMISSION

In the matter of the Application of the Jessamine-South Elkhorn Water District For approval to proceed with project construction primarily financed by U.S. Department of Agriculture and the U.S. Department of Housing and Urban Development and to change rates in conjunction with such project.

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No.

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JUL 2 1 1999 PUBLIC SERVICE COMMlSSlON

APPLICATION Pursuant to 807 KAR 5:069, Jessamine-South Elkhorn Water District (“Applicant”) petitions the Kentucky Public Service Commission (“Commission”) as follows: 1.

The Applicant’s full name is Jessamine-South Elkhorn Water District

(formerly Lexington-South Elkhorn Water District) and its post ofice address is 1I7 South Main Street (formerly 200 West Maple Street), Nicholasville, KY 40356. The applicant is

a corporation, but rather an entity created under KRS Chapter 74.

This Application is based upon the installation of 40 miles of six (6”) inch water

line to serve approximately 334 residences and nine (9)commercial establishments in an area generally described as southeastern Jessamine County. Of the approximate 343 new customers, 65% are classified as LMI (low to middle income).

Additionally, two,

100,000 gallon water storage facilities @e., standpipes) will be constructed within the

service area to meet peak demands for water. The sites for these standpipes have already

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been purchased for the sum $2,495.00 each.

This project will provide water service to

an area which is the last significant part of Jessamine County, Kentucky to be without such service. The Applicant annexed the territory within which water service will be provided in 1996, and water to serve the area will be purchased from the City of Nicholasville by contract dated August 22, 1996, and by means of a single connection to

an existing city of Nicholasville six (6”) inch line near Chrisman Mill Road and Logan Lane. The project is financed with a loan from the U.S. Department of Agriculture in the sum of $1,901,000.00, a grant from the U. S . Department of Housing and Urban Development of $999,700.00, a $400,000 loan from a local bank, $72,600.00 in tap fees from the new customers, and a contribution of $30,000.00 each from the Applicant and the Jessamine County Fiscal Court. The Applicant requests approval from the Commission to proceed with this project and to adjust its rates, as specified herein, in order to service the debt being incurred to finance the project.

2.

Attached hereto as Exhibit “A” are the documents from the U.S.

Department of Agriculture and the U. S. Department of Housing and Urban Development approving the project. 3.

Attached hereto as Exhibit “B” is the letter from the U.S. Department of

Agriculture concurring in the bid awards. 4.

Attached hereto as Exhibits “C” and “D’, respectively, are the preliminary

and final engineering reports. 5.

Attached hereto as Exhibit “E’ is the certified statement fiom the

Applicant’s Chairman complying with 807 KAR 5:069 §1(5)(a-d).

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6.

Notice complying with the requirements of 807 KAR 5:069 92 was

published in a newspaper of general circulation in Jessamine County, Kentucky,

The

Jessamine Journal, on July 1, 1999. A copy of said Notice is attached as Exhibit “F”. WHEREFORE, the Applicant again requests approval of this project and the authority to adjust its rates in order to service the debt which finances the project.

1 BRUCE E. SMITH MOYNAHAN, IRVIN -

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& SMITH, P.S.C.

110 NORTH MAIN STREET NICHOLASVILLE, KENTUCKY 40356 ATTORNEY FOR JESSAMINE-SOUTH ELKHORN WATER DISTRICT

G:\BruceUSEWD\Application

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07/02/99

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14: 45

003

427 RURFlL DEVELOPMENT Rurd

Oewhpmrnt

July 2,1999 Mr. Jerry Haws, Chairman Jessamine-SouthEkhom Water District 200 West Maple Street Nicholasville, Kentucky 40356 Re:

Letter of Conditions Dated January 5,1998

Dear Mr. Haws:

This letter shall serve as Amendment No. 1to your Letter of Conditions dated January 5,1998. The purpose of the amendment is to revise the water rates, project funding, number of customem, and fidelity bond coverage. Paragraph number 2 on Page 1 is revised to read as fblbws:

This letter is not to be considered tu loan approval or as a representation as to the availability of funds. The docket may be completed on the basis of RUS loan not to exceed $2,301,000, a Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) of $999,700, a cash contribution fiom Jessamine County Fiscal Court in the amount of $30,000, and a cash contribution form the Water District in the amount of $30,000.

Paragraph numbered "1" is revised to read as follows: 1. #:

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There shall be 1,803 water users, of which 1,4A are existing users an1 are new users contributing $72,700in connection fees toward the cost of the project. The connection fees Will be collected prior to advertising for construction bids and will be placed in the construction account at loan pre-closing, unless spent for authorized purposes prior to loan preclosing. The Rural Development Manager will review and authenticate the numbet of users and amount of connection fees .d -av

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Run1 Dovolopmenl Is an Equal Oppomnlty Lendor. COfnpl.lnh of dlwr(mtnati0(l$hottldbe 86M to! Secrntay ol Agrlculturs, Wlclklngtan, D.C. 20260

07.42/99

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14: 45

427 RURAL DElJELOPMENT

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Jessamine-South Elkhorn Water District

Paragraph numbered "3"is revised to read BB follows: 3.

.. h : The Water District will be required to deposit $1,I 90.00 per month into a "Funded Depreciation Reserve Account". The monthly deposits arc for the life of the loan.

The required deposits to the Reserve Account are in addition to the requirements of the Water District's prior bond resolutions. The monthly deposits to the Reserve Account are required to commence the first full fiscal year after the facility becomes operational.

Paragraph numbered 10. C"is revised to read as follows: C.

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Fidelity Bond The Water District will provide Fidelity Bond Coverage for all persons who have access to funds. Coverage may be provided either for dl individual positions or persons, or through "blanket" coverage providing protection for all appropriate employees and/or officials. The amount of coverage required for all RUS loans is $144,000,

Paragraph numbered "20" is revised to read as follows:

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20,Cost: Breakdown of Costs: $ 2,810,000

Development Land and Rights Legal and Administrative Engineering Interest Contingencies

15,000 66,700 346,200

40,000 _15L509

TOTAL

$ 3,433,400

Financing: RUS Loan

$ 2,301,000

999,700 30,000

"DCDBG Grant Jessamine Co. Fiscal Court Applicant Contribution

1o2.700 TOTAL

$ 3,433,400

I I I I I I 1 I I I I I I I I I I I I

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Page 3

Jessamine-SouthElkhorn Water District Paragraph numbered "22"is revised to read as follows:

22. Rates and charges for facilities and services rendered by the Water District must be at least adequate to meet cost of maintainin& r e p a h g and operating the water system and meeting required principal and interest payments and the required deposits to debt service and/or depreciation reserve. Water rates will be at least:

2/4" x 5/8" First Next Next

- Connection Fee = $550,00 2,000 gallons @ $ 21,OO - Minimum Bill. 2,000 gallons @ S 4.85 - per 1,000 gallons. 2,000 gallons @ S 10,000 gallons @ $ 8,000 gallons @ $ 24,000 gallons @ S

Next

Next All Over

4.75 4.65 4.55 4.45

- per 1,000 gallonsB - per 1,000 gallons.

--

per 1,OOO gallons.

per 1,000 gallons.

- Connection Fee = $675.00 10,ooO 6,000 8,000 24,000

Pit Next

Next

All Over First All Over

58.80 - M ~ ~ U IBill, II 4,65 per 1,000 gallons. 4.55 - per 1,000 gallons. 4.45 per 1,000 gallons.

gallom @ $ gallons @ J $

-

gallons @ $ gallons @ $

- Connection Fee = Subject to Approval 24,000 gallons $ 123.10 - Minimum Bill. @

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4.45 per 1,000 gallons,

24,000 gallons @ $

A $6.50 per month surcharge will be assessed to all new users served by the proposed water expansion project.

All other provisions of the referenced Letter of Conditions remain in full force and unchanged. Sincerely,

State Director Rural Development cc:

Rural Development Manager = Shelbyville,Kentucky Community Development Manager Nicholasville, Kentucky Bluegrass ADD Lexington, Kentucky Bruce E. Smith Nicholasville, Kentucky

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Henry M,Reed, 111- Louisville, Kentucky Home Engineering, Inc. = Nicholasville, Kentucky PSC ATTN: Claude Rhorer Fraddort, Kentucky

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I I USDA I I I I Mr. I I I 1 I This I S I I I Form RD 1 I 1 I

United States Department of Agriculture

771 Corporate Drive, Suite 200 Lexington, KY 40503-5477 ( 6 0 6 ) 224-7336 T I Y ( 6 0 6 ) 224-7422

Rural Development .

I

January 5,1998

MI. Jerry Haws, Chairman Jessamine-South Elkhorn Water District Nicholasville, Kentucky 40356 Dear

Haws:

This letter establishes conditions \vhich must be understood and agreed to by you before hrther consideration may be given to the application. The (loan and/or grant) will be administered on behalf of the Rural Utilities Service @US) by the State and Area office staffof USDA, Rural Development. Any changes in project cost, source of fimds, scope of services or any other significant changes in the project or zpplicant must be reported to and approved by USDA, Rural Development, by M ~ t t e namendment to this 1ei;cr. Any chmges not approved by Rural Development shall be cause for discontinuing piocessbg of the'application; It shouid also be understood that Rural Development is under no obligation to provide additional finds to meet an overrun in construction costs.

letter is not to be considered as loan or p a a t approval or as a representation as to the availability of funds. The docket m2y be completed on the basis of an RUS loan not to exceed 1,90 1,000, a Department of Housing a d Urban Development (HUD) Community Developnient Block Grant (CDBG) of $999,700, a cash contribution fiom Jessamine County Fiscal Court in the m o u n t of $30,000 and a cash contribution fiom the Water District in the amount of $30,000.

If Rural Development makes the loan, you may make a written request that the inlerest rate be the lower of the rate in effect at the time of loan approval or the time of loan closing. If you do not request the lower of the two interest rates, the interest rate charged will be the rate in effect at the time of loan approval. The loan will be considered approved on the date a signed copy of 1940-1, "Request for Obligation of Funds," is mailed to you. If you want the lower of the two rates, your written request should be submitted to Rural Development aS soon as practical. In order to avoid possible delays in loan closing, such a request should ordinarily be submitted at least 30 days before lorn closing.

Please complete and return the attached Form RD 1942-46, "Letter of Intent to Meet Conditions," if you desire that further consideration be given to your application.

Rural Development is an Equal Opportunity Lender. CornDlainB of discnmlnation should be sent to:

Jessamine-South Elkhorn Water District

Page 2

The "Letter of Intent to Meet Conditions" must be executed within three weeks from the date of this letter or it becomes invalid unless a t i n e extension is grmted by Rural Development. If the conditions set forth in this letter are not met within 240 days from the date hereof, Rural Development resenres the right to discontinue the processing of the application.

In signing Form RD 1942-46, you =e agreeing to complete the follo\iiing as expeditiously as possible: 1.

Nuniber of Users and Their Contribution:

There shall be 1755 i:,ater users, of which 1,446 are existing users and 309 are new users coritnbuting $72,700 in connection fees towad the cost of the project. The connection fees will be collected prior to advmising for construction bids and will be placed in the construction account at lorn pre-closing, unless spent for authorized purposes prior to loan pre-closing. The Rural Development Manzger will review and authenticate the number of users 2nd m o u n t of connection fees prior to advertising for construction bids. 2.

ReDmment Period: The lorn will be scheduled for repayment over a period not to exceed 40 years from the dzte of the bond. Principal payment \vi11 not be deferred for a period in excess of two (2) yews from the date of the bond. Payments will be in accordance with applicable KRS w!iich requires interest to be paid semi-annually (Januuy 1st and July 1st) and principal will be due on or before the first of January. Rwzl Development may require the Wzter District to adopt a supplemental payment agreement providing for monthly payments of principal and interest so long as the bond is held or insured by RUS. Monthly payments will be approximate amortized installments. Rural Development encourages the use of the Preauthorized Debit (PAD) payment process, which authorizes the electronic withdrawal of funds fiom your bank account on the exact installment payment due date (contact the Rural Development Manager for hrther information).

3.

Funded DeDreciation Reserve Account: The Water District will be required to deposit $990.00 per month into a "Funded Depreciation Reserve Account". The monthly deposits are for the life of the loan. The required deposits to the Reserve Account are in addition to the requirements of the Water District's prior bond resolutions. The annual deposit to the Reserve Account are required to commence the first full fiscal year after the facility becomes operational.

I 'I I I I I I I I I I I I I I I I I

Jessamine-South Elkhorn Water District

4.

Page 3

Secuntv Reau i rements: A combined pledge of gross water revenue will be provided in the Bond Resolution. Bonds shall rank on a parity with esisting bonds, if possible. If this is not possible, the bond will be subordinate m d junior to the existing bonds, in which case the Water District \vi11 be required to abrogzte its right to issue additional bonds ranking on a parity with the existing bonds, so long as any unpaid indebtedness remains on this bond issue.

5.

Lznd Rights and Real Propertv: The Water District \vi11 be required to furnish satisfactory title, easements, etc., necessary to install, maintain znd operste the facility to seme the intended users. The ?ipelines will be on mivzte rights-of-wav where feasible. Skte md County rights-of-way will be used only in instances where'necessary and properly justified. Easements and options are to be secured prior to advertising for construction bids.

6.

Oroznization: The Wzter District v:iH be IegzIIy organized under applicable JLRS which 1\41 permit them to perfom this sentice, borrow and repay money.

7.

Business ODeration-2: The Water District \vi11 be required to operate the system under a well-established set of resolutions, rules and regulations. A budget must be established annually and adopted by the Water District after review by Rural Development. At no later than loan pre-closing, the Water District will be required to furnish a prior approved management plan to include, as a minimum, provisions for management, maintenance, meter reading, miscellaneous services, billing, collecting, bookkeeping, making and delivering required reports and audits.

8.

Accounts. Records and Audits: The Water District will be required to'maintain adequate records and accounts and submit statistical and financial reports, quarterly and annually, in accordance with subsection 1780.47 of RUS Instruction 1780 and RUS StaffInstruction 1750-4, a copy of which is enclosed. The enclosed audit booklet will be used as a guide for preparation of audits. Annual audits, budgets, and reports w i l l be submined to Rural Development. The Water District shall be required to submit a CODV of its audit agreement for review and approval prior to pre-closinp the loan. The Water District shall obtain the assistance of its accomtant to establish the Water District's accounting system. Rural Development approval of the accounting system is required.

I

I I I I I I

9.

AccomDlish Audits for Years in Which Federal Financial Assistance is Received:

The Water District nil1 accomplish zudits in accordance with OMB Circular A-133, during the years in which federal funds are received. The Water District will provide copies of the audits to the Area Office and the appropriate Federal cognizant agency as designated by OhfB Circular A-133. 10.

Insurznce and Bondino,: Tlie following insuiarice a i d bonding \vi11 be required: A.

Adequate Liability and Property Damage Insuance including vehicular coverage, if appliczble, must be obtained and maintained by the Wzter District. The \Yzter District should obtzin amounts of coverage as recommended by its attorney, consulting engineer mdor insurmce provider.

B.

\Voiker's Compensation - The Water District tvill carry worker's compensation insurance for employees in zccordance with applicable state laws.

C.

Fidelity Bond - The Water District \vi11 piovide Fidelity Bond Coverage for all persons who have access to fcnds. Coverage may be provided either for.all individual positions or persons, or through "blanket" coverage providing protection for all appropriate employees and/or officials. The amount of coverage required for all RUS loans is S 1 19,000.

D.

Real Property Insurance - The Water District will obtain and maintain adequate fire and extended coverage on all structures including major items of equipment or machinery located in the structures. The m o u n t s of coverage should be based on recommendations obtained by the Water District fiom its attorney, consulting engineer andor insurance provider. Subsurface lift stations do not have to be covered except for the value of eIectrical and pumping equipment therein.

E.

Flood Insurance - The Water District will obtain and maintain adequate coverzge on any facilities located in a special flood and mudslide prone areas.

I I I I I I

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Page 4

Jessamine-South Elkhorn Water District

11.

Planning and Performing Development: A.

The engineer should not be authorized to commence work on final plans and specifications until a determination has been made that the project can be planned and constructed within the estimated cost shown in paragraph "20" of this letter. When this determination has been made, Rural Development should be so advised by letter. The engineer may then proceed to develop final plans and specifications to be completed no later than 210 days from this date, and prepare bid documents. The Rural Development Manager is prepared to b i s h the necessary guide for him to follow so as to keep the project plans 2nd documents within our guidelines and requirements. The proiect should not be advertised for construction bids until -11

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.

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Jessunine:South Elkhorn Water District

I I I I I I I I I

B.

The following documents \vi11 be submitted to Rural Development for review 2nd must be concurred in by Rural Development prior to advertisement for construction bids: 1. 2.

3. 4.

Final plans, specificaiions and bid documents. Applicant's letter on efforts to encourage efforts to encourage sm2H business and minority-olvned business participation. -.. Legal Service Agreements. Engineering Agreeni e n t s .

Revision in these documents \vi11 be subject to Rural Development concurrence. Any agreements, contracts, etc. not reviewed and approved by Rural Development will not be eligible for payment from project finds or revenues fiom fxilities financed by this Agency. Prior to receipt of an zuthorization to advertise for construction bids, the Water District will obtain advance clevvlce from Bond Counsel regarding complivlce with KRS 423 pertaining to publishing of the zdvertisement for construction bids in local newspapers a d the period of time the notice is required to be published. 12.

Compliance with Section 504 of the Rehabilitation Act of 1973: The Water District will be required to comply with Section 504 of tlie Rehabilitation Act of 1973, a mended (29 U.S.C.794), in order to make sure no handicapped individual, solely by reason of their hmdicap, is excluded fiom participation in the use of the water system, be denied the benefits of the \vater system, or be subjected to discrinlination.

I I I I I 1 I I

Page 5

13.

C l o s i n ~Instructions: The Office of General Counsel, our Regional Attorney, will bc required to write closing instructions in connection with this loan. Conditions listed therein must be met by the Water District.

14.

Compliance wiith SDecial Laws and Reeulations: The Water District will be required to conform with any and all state and local laws and regulations affecting this type project.

15.

Ssstem Operator:

The Water District is reminded that the system operator must have an Operator's Certificate issued by the State. 16.

Prior to Pre-Closine the Loan. the Water District will be Reauired to Adopt: A. Form RD 194217, "Association Loan Resolution (Public Body)."

I I 1 I I I I I I I I I

Jessamine-South Elkhorn

.e! \

'strict

Page G

C. Forrn RD 400-4, "Assumce Agreement."

D. Form AD-1047, "Certification Regarding Debment, Suipension, and Other Responsibility Matters - Primvy Covered Transaction."

E. Form RD 1910-1 1, "Applicant Certification Federzl Collection Policies for Consumer or Commercial Debts."

F. FmHA Instruction 1940-Q, Exhibit A-1, "Certification for Contracts, Grants and Loans." _.

The Water District must offer the opportunity for 211 residents in the service &rea to beconie users of the facilities regardless of race, creed, color, religion, sex, national origin, maritzl status, physical or mental handicap or level of income. 17.

Refinancing and Graduztion Requirements: The Water District is reminded that if at any time it shall appezr to the Government that the Water District is able to rsfinmce the amount of the RUS indebtedness then outstanding, in whole or in part, by cbtaining a lorn from commercial sources at rezsonable rates and terns, upon the request of the Government, the Water District will appIy for and accept such 10x1 in sufficient amount to repay the Goveinment.

1 s.

Commercial Interim Financing: The Water District will be required to use commercial interim financing for the project during construction for the RUS loan portion of the finmcing, if available at reasonable rates and terms.

I I I I I I I

:

Before the loan is closed, the Water District will be required to provide Rurzl Development with statements from the contractor, engineer and attorneys that they have been paid to date in accordance with their contract or other agreements and, in the case of the contractor, that he has paid his suppliers and sub-contractors. 19.

Disbursement of Proiect Funds: A construction account for: the purpose of disbursement of project h d s (RUS) will be established by the Water District prior to start of construction. The position of officials entrusted with the receipt and disbursement of RUS project funds will be covered by a "Fidelity Bond," with USDA-Rural Development as Co-Obligee, in the amount of construction funds on hand at any one time during the construction phase.

During construction, the Water District shall disburse project h d s in a manner consistent with subsection 1780.76 (e) of RUS Instruction 1780. Form RD 1924-18, "Partial Payment Estimate," or similar form approved by Rural Development, shall be used for the purpose of documenting periodic construction estimates, and shall be submitted to Rural Development for review and acceptance. Prior to disbursement of funds by the Water District, the Board of Directors shall review and approve each ---*--or+P C t ; m ? q ~ 1 h;llq 1 2nd \rn\rchprq r n i i c t he ?mrn\)ed hv Rural Developmsnt nrior

I I I I I I 1 I 1 I I I I I I I ! I

Page 7

Jessamine-South Elkhom h a t e r District

I1

!

Form RD 440-1 1, "Estimate of Funds Needed for 30-Day Period Comnlencing will be prepared by the Water District and submitted to Rural Development in order that a periodic advance of federal cash may be requested. 9

Monthly audits of the Water District's construction account records shall be made by Rural Development. 20.

Cost of Faciliw:

S 2,362,900

Development Land and Rights Legal and Administrative Engineering Interest Contingencies

TOTAL

15,000 12,000 367,200 40,000 236 300 S 3,033,400

Finmcing:

RUS Loan KUD-CDBG Jessamine Co. F i s d Court Applicant Contribution

S 1,901,000

TOTAL S 21.

999,700 30,000 102.700 3,033,400

Use of Remainine Proiect Funds: The applicant contribution and Jessamine County Fiscal Court's funds shall be considered as the first funds expended. After providing for all authorized costs, any remaining project funds will be considered to be RUS loan /CDBG grant firnds and refunded in proportion to participation in the project.

22.

Rates and Charges: Rates and charges for facilities and services rendered by the Water District must be at least adequate to meet cost of maintaining, repairing and operating the water system and meeting required principal and interest payments and the required deposits to debt service andor depreciation resene.

.

This Agreement O

t

FILE COPY is and made

,

....

.

_-

entered into this

33-d day of

, 1997, ~ by and between Jessamine County, Kentucky, hereinafter

referred to as Recipient and the Commonwealth of Kentucky, Department for Local Government, hereinafter referred to a s the Commonwealth.

The purpose of this Agreement is to set forth the terms and conditions under which the Commonwealth agrees to dispense the s u m of $999,773 the Recipient.

Recipient desires to use the funds for the Southeast Jessamine Rural Water Extensions Project.

I ..

I ' I I I I I 1 I I I I I I I I I I I

1. GENERAL PROVISIONS

This agreement shall consist of the following documents which are incorporated by reference as if fully set out herein: (1) the Grant Agreement and all exhibits to which this agreemsnt refers; (2) the application, including the Statement of Assuranws, and all State and Federal k w requirementsto which the application and this agreement refer or apply; (3) the State of Kentucky Handbook for KCDBG Grantees currently in effect, plus any advisories; (4) any applicable administrative regulations; and (5) any amendments or modifications to any of the above referenced requirements.

Unless SpeCifrcaJlyprovided otherwise or the context otherwise requires, when used in this Grant Agreement:

"Act"means the Housing and Community DevelopmentAct of 1974, Pub. L. (1) No. 93-383, as amended. (2) "Application" means the Commonwealth Small Cities Community Development Blodc Grant (CDBG) Application, and such other submittals, as are specified in Exhibit A of this Grant Agreement.

(3)

"Default" means any default set forth in Section 6-A to this Grant Agreement.

"Eligible Costs" means costs for the activities specified in Exhibit B of this (4) Grant Agreement for which grant funds are budgeted as specified in Exhibit C of this Grant Agreement, provided that such costs (i) are incurred in connection with any activity which is eligible under Section 105A of Title I of the Act, and (ii) conform to the requirements of Attachment B of Offie of Managementand Budget Circular A 4 7 (Cost Principles Applicable to Grants and Contracts with State and Local Government), as may be amended from time to time. For purposes of determining the conformity of costs to said Attachment B, all costs set forth In Section C thereof may be considered eligible without prior approval of the Commonwealth. "Environmental Conditions" means the condition imposed by law, particular& (5) 24 CFR Part 58, and the provisions of the Grant Agreement which prohibit or limit the commitment and use of grant funds until certain procedural requirements have been completed.

(6)

"Environkntal Requirements" means the requirements described in 24 CFR

Part 58.

(7) "Environmental Studies" means all eligible activities necessary to produce an "environmental document", as that term is defined at Section 1508.10 of 40 CFR Part 1508, or to comply with the requirements of 24 CFR Part 58. "Grant Funds" means those funds to be provided by the Commonwealth to Recipient pursuant to the terms of this Grant Agreement, as specified in Exhibit A of this Grant (8)

1

I I I I I I I I I I I I I I I I I I I -

Agreement. Development.

" H U D means the United States Department of Housing and Urban

(E

(10) "Program Income" means the CDBG portion of : (i) any income earned by Recipient, or an agent or agency of Recipient, from the disposition of real or personal property acquired in whole or in part with grant funds; (ii) the repayment proceeds (including principal and interest) of any loan made in whole or part with grant funds; (iii) any other revenues defined as program income in 24 CFR Part 570, Subpart J. The "CDBG portion" means an amount computed by applying the percentage of participation of CDBG funds (i) in the acquisition cost of the property to the total income from the disposition of such property, (ii) in the amount of the loan to the total repayment proceeds of such loan, or, (iii) in the cost of an activity to the total income from such activity.

"Participating Party" means any person, firm, corporation or funding source identified as such in Exhibit A and/or 6 of this Grant Agreement. (11)

(12) "ProjW means'the activities described in the Application and in Exhibits B, C and E of this Grant Agreement which are to be carried out to meet the objectives of the CDBG

Program.

(13) "Recipient" means the local governmental entity receiving grant funds pursuant to this Grant Agreement, as more particularly identified on the cover page ot this Grant Agreement. (14) "Recipient Activities" means those activities of the Project to be carried out by the Recipient, its agent or agency, which activities are described in Exhibit B of this Grant Agreement.

(15) "CDBG" means a grant guided by Title I of the Housing and Community Development Act of 1974, as amended and those regulations set forth in 24 CFR Part 570, Subpart I, as may be amended from time to time and all other applicable Federal and State regulations and laws and assurances signed by Recipient at the time the Recipient's Application was submitted.

(16) "Commonwealth" when not used to designate the territory of the Commonwealth of Kentucky shall mean the Commissioner of the Department of Local Government or any other person to whom the Commissioner h a s delegated authority to act with respect t9 matters covered by this Grant Agreement 2. AMOUNT AND AUTHORIZED USES OF GRANT FUNDS

In consideration of the various obligations undertaken by the Recipient pursuant to this Grant Agreement, as represented by the Recipient In the Application, the Commonwealth agrees, subject to the terms and ConditionS set forth herein, to provide the Recipient with grant funds in the amount specified in Exhibit A of this Grant Agreement

2

I I I I I I I I I I I I I I I I I I I

:

The grant funds provided to the Recipient pursuant to this Grant Agreement shall be used only for the specific purposes described in Exhibit 6 of this Grant Agreement and in the amount's budgeted in Exhibit C of this Grant Agreement, subject to the project amendments provisions of the Commonwealth CDBG program.

The amount of grant funds which the Commonwealth has agreed to provide to the Recipient under this Grant Agreement has been determined by the Commonwealth in reliance upon the cost estimates of the Recipient with respect to the activities set forth in the Application. The Commonwealth resews the right to reduce the grant amount (i) to conform to any revision to which the Recipient and the Commonwealth may agree with respect to Exhibits B or C of this Grant Agreement, (ii) if the actual costs for activities are lower than those set forth in Exhibits B or C of this Grant Agreement, or (iii) if the investment by Participating Parties is less than the amount specified in Exhibits B, C or D.

(1) All Program Income which is received by the Recipient, prior to completion of all Recipient Activities shall be used prior to, and in place of, any draw of grant funds to the extent adequate to pay costs so incurred.

Unless otherwise specifically stated in Exhibit B of this Grant Agreement, all (2) Program Income received by the Recipient, after completion of all Recipient Activities'shall be used by the Recipient, for community or economic development activities eligible for assistance under Title I of the Act as specified in the Commonwealth Eligible Activities Policy Statement. 3. DISBURSEMENT OF GRANT FUNDS

ALuwmmmn 1

.

Promptly after the Commonwealth has received from the Recipient three (3) fully executed copies of this Grant Agreement and has approved evidentiary materials required by Exhibit D of this Grant Agreement that would allow a draw of grant funds pursuant to the terms of Exhibits C and E of this Grant Agreement, the Commonwealth shall authorize the amount of gract funds specified in Exhibit A of this Grant Agreement. (1)

The Recipient is authorized to draw grant funds only in accordance with the provisions ofthis Grant Agreement and the procedures established by the Commonwealth. No payment by the Commonwealth of an improper or unauthorized draw to the Recipient shall constitute a waiver of the right of the Commonwealthto challenge the validity of said draw, to enforce all rights and remedies set forth in the Grant Agreement, or take corrective or remedial administrative action, which action may include, without limitation, suspension or termination of the Reapient's funding under this Grant Agreement. (2)

(3) The dispositjon of any grant funds that remain available following completion of the Project, termination of this Grant Agreement by the Commonwealth, or termination of the

3

I I I I I I I I I I I 1 I I I I I I I

I

Project for any cause, shall be in accordance with closeout procedures then in effect or established by the Commonwealth including provisions of OMB Circular A-128, and the Recipient shall not have any rights to such grant funds. for P (1)

r

. .. w

The use of grant funds is conditioned upon the Reapient incurring costs to

be paid in accordancs with this Grant Agreement or as otherwise approved by the Commonwealth in writing. Except as permitted by 24 CFR Part 58, no costs to be paid out of grant funds may be incurred by the Recipient until all Environmental Conditions of 24 CFR Part 58 have been fully satisfied and the Commonwealth has issued the environmental releases required by 24 CFR Part 58.

The authorization to iwr costs in subsection (1) above is not an authorization to reimburse those costs and does not mean or imply that such costs will be reimbursed out of grant funds. The Recipient may voluntarily, at his own risk, and upon his own credit and expense, incur a s t s as authorized in subsection (1) above, but his authority to reimburse or to be reimbursed out of grant funds shall be governed by the provisions of this Grant Agreement applicable to the payment of costs and the release of funds by the Commonwealth. (2)

Prior to the issuance by the Commonwealth of the environmental releases (3) required by 24 CFR Part 58, the Recipient may not us8 any funds, including local funds, to take any action with respect to the Project where such action might have an adverse environmental effect, would limit choices among competing alternatives, or might alter the environmental premises on which the pending clearance is based in such a fashion that the validity of the conclusions to be reached would be affected. to DrawGrant Funds

Recipient's draw of grant funds can ocwr only after the following has occurred: CFR Part 58,

(1)

The Commonwealth has issued the environmental releases required by 24

The Commonwealth has approved, the required evidentiary materials specrfied (2) in Exhibit D of the Grant Agreement, The Commonwealth has authorized, per the executed Notice of Approval Evidentiary Materials and Release of Funds, the Recipient's ability to draw grant funds,

(3)

df

Recipient shall have submitted all certifications and materials required as (4) conditions precedent to Recipient's authority to pay costs out of grant funds, If authorized by Exhibit D herein and if the Commonweahh finds Recipient has (5) timely and acceptably submitted the evidentiary materials in Exhibit D herein, approved same, and if no default has occurred, as defined in Section 6-A herein, and

Recipient has not been served by Commonwealth with notice of Recipient's suspension of authority to so draw the grant funds nor is in breach of b obligation to report a default. (6)

4

4. REPRESENTATIONS, WARRANTIES, AND OBLIGATIONS

A. R m n t s "

1

The Redpient has, by and through consultations among all appropriate members of the Recipient's governing body and its officers, examined each of the following and by Its execution of this Grant Agreement the Recipient does, upon information and belief, represent and warrant to the Commonwealth that: The Recipient is duly organized and validly existing under the laws of the (1) Commonwealth, and has all the requisite power and authority to enter into this Grant Agreement and to assume the responsibilities for compliance with all Federal and State laws and regulations. A resolution, motion, order or ordinance has been duly adopted, passed or (2) enacted as an oKdal act of the Recipient's governing body, authorizing the execution and delivery of this Grant Agreement by the Recipient and authorizing and directing the person executing this Grant Agreement to do so for and on behalf of the Recipient, said acts being done in such manner and form as to comply with all applicable laws to make this Grant Agreement the valid and legally binding act and agreement of the Recipient

There is no action, proceeding, or investigation now pending, nor any basis (3) therefore,known or believed by the Recipient to exist, which (i) questions the validity of this Grant Agreement, or any action taken or to be taken under it, or (ii) is likely to result in any material adverse changes in the authorities, propertjes, assets, liabilities, or conditions (financial or otherwise) of the Recipient which would materially and substantially impair the Recipient's ability to perform any of the obligations imposed upon the Recipient by this Grant Agreement. The representations, statements, and other matters contained in the (4) Application were true and complete in all material respects as of the date of filing. The Recipient is aware of no event which would require any amendment to the Application (other than a n amendment which has been filed with and approved by the Commonwealth) which would make such representations, statements, and other matters true and complete in all material respects and not misleading in any material respect. The Recipient is aware of no event or other fact which should have been, and has not been, reported in the Application as material information.

The Recipient has obtained or has reasonable assurances that it will obtain (5) all Federal, State and local government approvals and reviews required by law to be obtained by the

Recipient for the Project

,

(6) Insofar as the capaaty of the Recipient to carry out any obligation under this Grant Agreement is concerned, ( i ) the R8Cipient is not in material violation of its Charter, or any

mortgage, indenture, agreement, instrument, judgement, decree, order, statute, rule or regulation and (ii) the execution and performance of this Grant Agreement will not result in any such violation. (7)

Except for approved eligible administrative and personnel costs, none of the

recipient's designees, agents, members, officers, employees, consultants or members of Its governing body in which the program is situated, and no other public official of the recipients of such locality or locaities who exercises or who has exercised any functions or responsibilities with respect to the project during his or her tenure, or who Is in a position to participate In a decision-making process or gain Inside information with regard to the project, has or shall have any interest, direct or indirect, in any contract or subcontract or the proceeds thereof for work performed in connection 5

-_

I I I I I I I

I I I

I I I I I I I

I I

with the project or in any activity, or benefit therefrom, which is part of this project at anytime during

or after such person's tenure unless all procedures for an exception have been documented and submitted in writing to the Kentucky Department for Local Government and the Kentudy Department for Local Government has approved such exception. The procedures for requesting, documenting, and submitting a request for an exception from the Conflict of Interest provisions shall include the applicable procedures delineated in 24 CFR 570.489(h)(4); KRS 99.350(8);KRS 61.252(1); and the local community ethics code. This Conflict of Interest provision shall be in addition to the requirements in the "Common Rule," 24 CFR Part 85, A-110, KRS 45A.340 and KRS 61.250 et. seq.

The Recipient shall use its best efforts to assure the completion of the (1) Recipient Activities described in Exhibit B of the Grant Agreement within the time periods specified in Exhibit E of this Grant Agreement. The Recipient agrees that the foregolng undertaking and assurance means (2) that Redpient shall, to the maximum extent permitted by law, use and apply all of its governmental and proprietary powers for such completion, Including but not limited to those powers governing taxes,other revenues, credit, eminent domain and appropriations,'if necessary, for the purpose of providing any shortfall between funds available under the grant and funds necessary to complete all of the Recipient Activities described in Exhibit B of this Grant Agreement.

c. m m m n w d L W o v a 1 of 4IJEdmm The Commonwealthwill consider program amendments initiated by the Recipient or by the Commonwealth. The Commonwealth defines a program amendment as a request for change in an approved program which (i) is a new activity in the program, (ii) significantly alters the scope, location, or objective of the approved activities or beneficiaries, and/or (iii) results in a change or cumulative changes of the approved budget Any amendments will be made in accordance with the procedures set forth in the State of Kentucky Handbook for KCDBG Grantees established by the Commonwealth.

The Recipient shall promptly give written notice to the Commonwealthupon (1) the discovery by the Recipient of any default involving any Participating Party, as defined in Sectidn 6-A of this Grant Agreement. Promptly, upon the discovery of any default involving any Participating Party, (2) the Recipient shall vigorously pursue, to the fullest extent possible, all remedies available to Recipient to remove or cure such default, or to seek redress or relief from Its effects, including reimbursement for any grant funds expended on the Project, and to prevent or mitigate any adverse effects on the Project. Recipient shall keep the Commonwealth fully informed as to the status of such actions.

6

,

I I I

5. INSPECTION AND REVIEW

The Recipient shall keep and maintain such books, records and other documents as shall be required under rules and regulations now or hereafter applicable to grants made under the CDBG Program, and as may be reasonably necessary to reflect and fully disclose the amount and disposition of the grant funds, the total cost of the activities paid for in whole or in part with grant funds, and the amount and nature of all Investments relative to such activities which are supplied or to be supplied by other sources. (1)

(2) All such books, records and other documents shall be available at the office of the Recipient for inspection, copying, audit and examination at all reasonable times by any duly authorized representative of the Commonwealth, HUD, the General Accounting Office and the Inspector General of the United States.

Any duly authorized representative of the Commonwealth or HUD shall, at all reasonable times, have access to all portions of the Project until completion of all doseout procedures and final settlement and condusion of all issues arising from this grant.

The Recipient shall promptly furnish to the Commonwealth all reports required to be filed in accordance with any directives of the Commonwealth or any statute, rule or regulation of HUD. 6. DEFAULTS AND REMEDIES

A default shall consist of any use of grant funds for any purpose other than as authorized in Exhibits 8 and C of this Grant Agreement; or any breach of any covenant, agreement, provision, or war~anty(i) the Recipient made in the Grant Agreement; (ii) the Recipient made in any agreement entered into between the Recipient and any Participating Party relating to the Project; (iii) any Participating Party made in any agreement speafied In Exhibit D of this Grant Agreement, or;, (iv) of the performance schedule specified in Exhibit E of the Grant Agreement.

Upon occurrence. of any default as described in Section 6-A, the (1) Commonwealth may suspend the Recipient's authority to draw grant funds at any time by notice to the Recipient If a default is not cured within thirty (30) consecutive days from notice of such default by the Commonwealth to the Recipient, the Commonwealth may continue such suspension or by delivery of notics terminate this Grant Agreement. In the event of a termination, the Recipient's authority to draw funds shall have terminated at the date of the notice of termination and the Recipient shall have no right, title or interest In or to any grant funds remaining. .

7

,I' I dddition to any other rights or remedies, a default consists of the (2) Recipient's failure materials described in Exhibit this Grant Agreement I the date in Exhibit!he evidentiary of this Grant Agreement or in other official written notification, the havo right to terminate this Grant Agreement and the award of grant funds Commonwealth to which this Grant Agreement relates by delivery of written notice to the Recipient. Upon such I termination, all obligations of the Commonwealth pursuant to this Grant award shall cease and the Recipient shall neither have nor retain any rights Agreement and provided under this Grant Agreement I whatsoever with respect to therightsgrantandfunds remedies of the Commonwealth shall deemed to cumulative in addition to those rights afforded the Commonwealth law or equity. I theAnyexclusion election of any right or remedy shall deemed to an election of that right or remedy to of any other right or remedy. The rights and remedies available to the Commonwealth in the event of a I suspension or termination of the Grant Agreement shall survive suspension or termination. I EVlDENTlARY MATERIALS I In selecting the Recipient for the award of this grant, the Commonwealth has relied, in material part, upon the representations of the Recipient and Participating Parties that the 1 Redpient and the Participating Parties will carry out certain activities connected with the Project; those activities; have, or will have, the financial capability to assure the carrying out of the activities to the completion; and (iv) will invest, cause to be invested, a specific value I amount in the Project. Evidentiary by Recipient as Exhibit have been submitted to approved by Commonwealth shall not amended in any material respect I without Commonwealth. prior written approval I documentary evidence of commitments submitted to the Commonwealth for approval shall in either duplicate original, or a photographic copy fully I executed original, thetheformdocuments. I I amendments, notices, requests, objections, waivers, rejections, agreements, approvals, disclosures and consents of any kind made pursuant to Grant I Agreement shall in writing. if

lri

by

D of

to SLibiTlit specified D shall the

such

The (3) and shall be

be by

all

be

be

not be

(4)

such

'

7.

(1)

(i)

(ii) will complete

(iii)

or

materials submitted the of the

(2)

and

All be

of

the

(i) a

D which

be

(ii)

of the

of

'a

8. MISCELLANEOUS

(1)

All

this

be

I I

Any such communication shall be deemed effective for all purposes as of the (2) date such communication is mailed, postage prepaid, by registered or certified mail, return receipt requested, to be delivered only to the office of the addressee, addressed as follows: 8

. .

(4.-. -*

Division of Community Progrm-M 340, Frankfort, Kentucky 40601. (b)

.

shall also be mailed to: Government, 1024 Cap'nal Center Drive, Suite

to the C o -

i.;.: :. :

. . shall be addressed to the Recipient, . . ;

at the address set forth in Exhibit A of this Grant Agreement, or such other address or representative as may be furnished by the Recipient to the Commonwealth.

No right, benefit, or advantage inuring to the Recipient under this Grant Agreement and no burden imposed on the Recipient hereunder may be assigned without the prior written approval of the Commonwealth. An authorization by the Commonwealth for the transfer of grant hrnds by Recipient to a Participating Party shall not be deemed a n authorization for a n assignment, and such Particjpating Party shall not succeed to any rights, benefits or advantages of the Recipient hereunder.

This Grant Agreement shall bind, and the rights, benefits and advantages shall inure to, the Recipients successors.

No delay or omission of the Commonwealth in exercising any right or remedy available under this Grant Agreement shall impair any such right or remedy or constitute a waiver of any default, or an aquiescence therein.

All rights and remedies of the Commonwealth under this Grant Agreement shall be w mulative.

If any article, subsection, dause or provision of this Grant Agreement is held by any court to be unenforceable or prohibited by any law applicable to this Grant Agreement, the rights and obligations of the parties shall be construed and enforced with that part, term or provision limited so as to make it enforceable to the greatest extent allowed by law, or, if it is totally unenforceable, a5 if this Grant Agreement did not contain that particular part, term or provision.

This Grant Agreement constitutes the entire agreement between the Commonwealth and the Recipient and supersedes all prior oral and written agreements between the parties hereto with respect to the subject grant Notwithstanding the provislons of Section 1-A of this Grant Agreement and anything contained in the Application, the provisions of this Grant Agreement shall prevail.

9

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of c o w - r j . 3 y -- : ;

Any table of contents and ths hec.di;lgs of the sections and subsections set forth herein are not a part of this Grant Agreemerd zxl shall not be deemed to affect the meaning or construction of any of its provisions.

&miM This Grant Agreement, or any part hsreof, may be amended as previously described in Section 4-C from time to time hereafter only in writing executed by the Commonwealth and the Recipient. bL

I I I I I I I I I I I I I

..-:-m

Go-

This Grant Agreement as it may affect the rights, remedies, duties, and obligations of the Commonweatth shall be governed by and construed in accordance with Federal and State law.

Insofar as Federal law does not apply, the provisions of this Grant Agreement shall be governed by and construed in accordance with the laws of the Commonwealth.

K.-w The CommonweaJth reserves and shall have the exdusive right to waive, at the sole discretion of the Commonwealth, and to the extent permitted by law, any requirement or provision under this Grant Agreement. No act by or on behalf of the Commonwealth shall be, or be deemed or construed to be, any waiver of any such requirement or provision, unless the same be in writing, signed by the Commonwealth, and expressly stated to constitute such waiver.

The Grant Agreement, as prepared by the Commonwealth and submitted to (1) the Recipient, shall constitute a n offer by the Commonwealth to the Recipient to make the within grant and to enter in this Grant Agreement. The Recipient shall promptly accept and execute, if at

all, the Grant Agreement which shall not be altered without the Commonwealth's approval. Upon execution of the Grant Agreement, the Recipient will return the Grant Agreement to the Commonweahh for find approval evidenced by the signature of the Commissioner of the Department of Local Government and the secretary of Finance and Administration Cabinet. The Commonwealth may rescind the offer at any time prior to its acceptance by the Secretary of Finance and Administration Cabinet, by written notice to Recipient, given as specified in Section 8-A of the Grant

Agreement.

This Grant Agreement shall be deemed to have been accepted, and shall (2) become effective, as of the date this Grant Agreement is executed and dated by the Secretary of Finance and Administration Cabinet of the Commonwealth of Kentucky. &T

, .

This Grant Agreement shall terminate upon the completion of all doseout procedures respecting this grant including provisions of the Single Audit Act, OMB Circular A-128 and the final settlement and conclusion between Recipient and the Commonwealth of all issues arising out of this grant. This Grant Agreement may also be terminated by either the Commonwealth or the Recipient on thirty (30) days written notice, sent certified mail, return receipt requested. This notice, if 10

tendered by the Commonwealth, may also include the notice to cure provided for in Section 6 B.(l). Upon termination of the agreement pursuant to this provision, the Recipient shall have no right to grant funds remaining to be disbursed. This provision shall in no way impair and shall be in addition

to any additional remedies the Commonwealth may have upon a finding of default or other noncompliance according to the terms of this grant agreement.

When, in Exhibit D of this Grant Agreement, a document is required to contain (1) a provision for the prevention or discouragement of speculation in the purchase and sale of properly by a beneficiary of grant funds, then, unless otherwise specified, such provision shall comply with this Section. The document shall prohibit the beneficiary of grant funds from selling or (2) otherwise disposing of the property within a period specified In Exhibit D of this Grant Agreement after the date of the purchase, for an amount In excess of the purchase price paid, plus the actual costs of any improvements to the property by the benefdary. The prohibition against sale shall have the same force and effect as a lis pendens, and shall specify that in the event of any attempted sale in violation of the provision, the Recipient shall be entitled to the ex-parte issuance of an injunction restraining such sale. The document shall be executed and authenticated in such manner and form as may be required under State law to authorize its recordation at the place of recordation of deeds, . as if a lis pendens and the document shall be so recorded. The document may, in conjunction with the foregoing or in lieu thereof, (3) describe a procedure whereunder, in the event of airy sale of the property within the period specified in Exhibit D of the Grant Agreement, the amount of grant funds which benefited the beneficiary shall be repaid by the benefiuaryto the Recipient. Such procedure may include a pro-rata reduction of the amount to be repaid, based upon the time elapsing between the date of the initial purchase of the property and its disposition by the beneficiary. The document must either specify the amount of the grant funds which benefited the beneficiary, or set forth a formula or agreed method for determining such amount. The document shall be executed and authenticated in such manner and form as may be required to authorize its recordation, as if a lis pendens and the document shall be

so recorded.

i I I I I I I I I I I I I I I I I I

I

Recipient:

Grant N

1 CFDA #14.228

DAY OF

EXECUTED BY THE PARTIES THIS DEPARTMENT OF LOCAL GOVERNMENT

Bob Arnold Commissioner

0 c . W

,1997.

GRANT RECIPIENT

Chief Executive Officer

Examined as to form and legality:

.

(

Thomas M.Troth Attorney

Recipient Attorne y

RECOMMEND APPROVAL:

FINANCE AND ADMINISTRATION CABINET

&J&%fi

Commissioner Department for Administration

Approved:

~

Secretary of Finance Examined as to form and legality:

Atto rney

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Recipient:

e County-

Grant No.

-

SUPPLEMENTARY PROVISIONS

rtoSecbon 1 -R(?). . In addition to Recipient's Application for Commonwealth Small Cities Community Development Block Grant Assistance, the "Application"shall include the following sub mitt als :

-

Cost Summary (Exhibit C)

-

Project Performance Schedule (Exhibit E)

N/A

sedlon 8-A.

The address of the Recipient for the purposes Of communications relating to this Grant Agreement shall be the following: to

The Honorable William Neal Cassity Jessamine County Judge/Executive Jessamine County Courthouse 101 North Main Street Nicholasville, Kentucky 40356 Contact :

Jayne Combs Bluegrass Area Development District 699 Perimeter Drive

Lexington, Kentucky 40517

Recipient:

eC o w

Grant No.

m -5

ExHlEEB DESCRIPTION OF RECIPIENT ACTlVlTl ES .

.

der to Sectlon 1-R!14). The "Recipient Activities" for the Project shall consist of the following (as stated in the Application and summarized below):

1.

The Recipient agrees to perform activities as stated in the CDBG application given preliminary approval on July 18,1997, and summarized below:

A.

Acquire two water tank sites and all necessary easements for construction of 35.4 miles of water line extensions and improvements in accordance with the Uniform Act. Perform surveys, easement preparation, and other related and miscellaneous items concerning site acquisition.

B.

Construct approximately 35.4miles of 6"PVC and ductile iron water lines and all necessary appurtenances.

C.

Construct two 100,000gallon standpipes.

D.

Provide all necessary engineering design, surveying, geotechnical, engineering inspection services.

E.

Design must be completed and submitted to the Kentucky Division of Water for approval within four months from the date the Notice to Proceed is issued to the engineer. The grantee must issue the Notice to Proceed to the engineer within 90 days from the date the Grant Agreement is executed.

2.

The Recipient agrees to provide all necessary administration for the pro&ct to assure compliance with all applicable state, federal and local statutes, as set forth in the KCDBG Statement of Assurances dated July 10, 1996.

3.

The Recipient shall expend no more than $50,700 of Block Grant funds to cover cost of planning and administration of the project.

4.

The project shall provide service to approximately 343 households and 721 persons. Fifty-one percent (51%) of all persons benefiting must be LMI.

5.

The Recipient will waive tap fees for LMI households. Very low and extremely low income households will be directed to USDA's RD 504 program for assistance with costs associated with service line construction.

I : I.'.I I D I I I I I I I I I I I I I I I

0

Recipient:

Grant No.

e Coyntll

ExHws

-

PROJECT BUDGET SUMMARY OF PROPOSED EXPENDITURES Attached (as marked Exhibit C containing one page)

I 1' I I I I 1 I I I I I I I I I I I I

COST SUMMARY

DLG USE: Exhibit C B ~ - D C - 2 1 - 0 0 0(1 O m

Jessamine C o w 4

ACT.

a)

b)

owner renter

ICDBG

IPROGRAM

IOTHER

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-

OTHER

7)

-

b) C)

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Grant No.

S

J

2

W

REQUIRED EVIDENTIARY MATERIALS

Recipient agrees to submit the following evidentiary materials for the approval of the Commonwealth in the manner and form described by the applicable provisions of Section

7 of this Grant Agreement:

-

Financial C e rtif ication.

-

Environmental Certification per 24 CFR, Part 58. Copy of clearance from State Historic Preservation Officer.

-

-

Written assurance that project Tap Fees of $72,600 will be collected and deposited in a project restricted account prior to Start of Construction. Tap Fees may be placed in a separate interest bearing account. Evidence of commitment for all other funds: Jessamine County Fiscal Court Lexington-South Elkhorn Water District Rural Development Total Other Funds

$30,000 $30,000 $1,608.187

$1,668,187

The County must submit written asurance that the local cash contributions from Jessamine County Fiscal Court and Lexington-South Elkhorn Water District have been designated for the project and evidence funds have been deposited in a restricted account. Local cash contributions may be placed in a separate interest bearing account. Written assurance that a Residential Antidisplacement and Relocation Assistance Plan has been adopted.

-

Evidence of Budget Ordinance/Amendment indicating inclusion of CDBG funds into Jessamine County's budget Engineers Certification that design will be completed within four months. Evidence of Clearinghouse review and assurance all conditions will be met.

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Recipient:

Grant No.

ne Counly

ExHuLE PROJECT PERFORMANCE SCHEDULE Attached (as marked Exhibit E containing one page)

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2

07/02/99

14: 44

I I I I I I I I I I I I I I I I

Rural bovrlopment

791 Corporate DrsVe, Sulte 200

hangton, KY 406osan (608)224-7388 lTY(608) 224-7422

July 2,1999

SUBJECT: Jessamine-South Elkhom Water District Concurrence in Contract Award

TO:

Rural Development Manager ShelbyviUe, Kentucky

Based on the bids received and the recommendation of the consulting engineer, Home Engineering, Inc., Rural Development concurs in the award of Contract SEJ-1 (Waterlines) to the low bidder, Kenney, Inc., in the amount of $2,301,578 and Contract SEJ-2(Water Storage, Telemetry, etc.) in the amount of $508,400.

/

Rural Development cc:

Henry M.Reed, 111 Louisville, Kentuclq Home Engineering, Inc. Nicholasville, Kentucky

I I

D02

427 RURFlL DEVELOPMENT

Rwal Development Ir an Equal Opportunfty Lender. Complalnta of dlsadmin8tlonshould be mnt to: Socnt81~ af Agrlcuttuca,Waehlngton, D.C. 20260

--.

.-.

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THE PRELIMINARY ENGINEERING REPORT IS ATTACHED HERETO AS EXHIBIT “C”

THE FINAL ENGINEERING REPORT IS ATTACHED HERETO AS EXHIBIT “D”

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CERTIFICATION PURSUANT TO 807 KAR 5:069 9 1 (5) (a-d) The undersigned hereby certifies to the Kentucky Public Service Commission as follows: The proposed plans and specifications for the project have been designed 1. to meet the minimum construction and operating requirements established in 807 KAR 5:066 $4(3) and (4),9 5(1), $6, $7, 0 8(1-3), 99 (1) and $10. 2.

All other state approvals and permits have been obtained.

The rates proposed, as set out in Exhibit “F”, will produce the total 3. revenue set out in the engineering reports. Construction will begin August 20, 1999, and barring unforeseen difficulties in construction, should conclude on August 20,2000.

4.

A

L-I L R

JERRY M. HAWS, SR. CHAIRMAN JESSAMINE-SOUTH ELKHORN WATER DISTRICT

G:\BruceUSEWD\Certifcation

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NOTICETO CUSTOMERS JESSAMINE-SOUTH ELKHORN WATER DlSTRlCl : Oistrict. The mes Fontoincdin this notice M the roles pmposed by Jamim-South Elkhorn Woter However. the Kentucky Public Servia Commission may ordcr rota to be charged tho! ;differfromt~pmpowdrotes.Suchnctionmay~ultinratuf~cEunomcrs~herthMthem~ * included in thisnotice. Any rson whomny~veoquestionorroncrmDboutthepmpoKdchange :?ofrntcs moy contnct HelenC?Helton. ExecutiveDimor. Kentucky PublicService Commission. .3,0Schenkel Lam. P.O. Box 615. FmnkfoR. Kentucky 40602. The bnsisforthe in-inmtesisnconstructionpmjecttoprovidepotDblewvotertorccently hdded territory. Proposed is the instollnrionof 35.4 miles of Cinch woter lines to serve o told of

I I

-

-..;1Wrcsidencesandninemmmerci~lestoblishmentsinanwagene~lydcseribed~southcPncrn Jchorninc County Also included is ercction gnllon woiu : storngc (i.e.. standpipes)which will used meet demon& for wnter new .-District for whom woter m i c e is lasomine-SouthElkhorn Water ("the project ma.').

the

be

tanks

Rnt-time

~US~OIIICK

to peak proposed. The

oftwo 100,ooO from the

hmthelcgolouthoritytorctoil wotcrwithinthedchnedpro~t~PocDblcwatertowrve :chew newcustomerswillbepurchnred fmmtheCityofNicholPrvillethroughnsinglcconneetion lo M existing Nicholosvillc binch diometer line ncnr chrism^ Mill Road and b g a n h e .

.

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Usage Blocks

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First Next Next

2.000gnltons 2.000gollons 2.000gollons : NCXI 10,~gollons : Next 8.000gollons Over 24.000pllons :l''Meter

*.

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,

:.

.:*

fist

-;

10.000gnllons

Next 6.000pllons Next 8.000gallons Over 24.000gollons ?,, Meter First 24.000 gnllons Over 24.000gollons

:' : *:

. .

Monthly Rata $550.00 Conndon Fce 17.53 (MINIMUM BILL) 4.14 per loo0 gollons 4.29 per loo0 gallons 4.06 per loo0gdlons 3.77 per loo0 gnllons per IO00 gnllons 3.49 Conndon Fce 5675.00 (MINIMUM BILL) 551.75 5 4.06 per IO00 gnllons 5 3.77 per IO00 gdlons 5 3.49 per loo0 gdlons E SubJcctto BILL) Approval Conmtion Fce (MINIMUM 5106.15 5 3.49 per IO00 gnllons

P

Next Next Next , Next Over ::I" Meter -, First :. Next : Next -1 Over

2.000gnllons

,

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2.000gnllons

1O.OOOpllons 8.000gnllons 24.000gnllons

-

10.000gollons 6.000pllons 8.000gnllonr 24.000mllons

- MeterOver 24.000gnllons 24.000gollons .. ..:. An odditionol56.50 WKI

-1

d

::sM.

Montbly Rata ConncctlonFee u50.00 21.00 (MINIMUMBILL) 4.85 per IO00gnllons per IO00 gallons 4.75 per IO00 plloru 4.65 4.55 per loo0 gallons 4.45 per loo0 gollons ConnectionFce 5675.00 $58.80 (MINIMUM BILL) 5 4.65 per loo0 galloru 5 4.55 per IO00 gallons 5 4.45 per 1006 gallons Connection Fce E Sub ect to Ap mvai ' 5123.10 (MiNihM Bi& per loo0 gallons 5 4.45

sunhnrge will be osxssed to customers served from lina in the project

I I II I I I F i I I I I I I I

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Exhibit D FINAL ENGINEERING REPORT SOUTHEAST JESSAMINE RURAL WATER EXTENSIONS AND STANDPIPE CONSTRUCTION

JESSAMINE SOUTH ELKBORN WATER DISTRICT 117 South Main Street Nicholasville, Jessamine County, Kentucky 40356

JUNE 1999

PREPARED BY: HORNE ENGINEERING, INC. Engineers- Land Surveyors - Planners 216 South Main Street Nicholasville, Kentucky 40356 (606) 885-9441

FINAL ENGINEERING REPORT JESSAMINE SOUTH ELKHORN WATER DISTRICT CONTRACTS SEJ-1 AND SEJ-2 SOUTHEAST JESSAMINE RURAL WATER EXTENSIONS AND STANDPIPE CONSTRUCTION

Statement of PurDose The purpose of this final engineering report is to present the tabulation of actual bids received and based on the low bids for SEJ-1 and SEJ-2 to revise the project cost estimate and rate schedule. A copy of the final plans and specifications for each project are attached to this report separately. The total amount received by bid for contracts SEJ-1 and SEJ-2 was $2,929,978.00. The received bids resulted in a net overrun of $519,181.00 above the revised cost submitted subsequent to the original submission of the preliminary engineering report, however, Commissioners of the Jessamine South Elkhorn Water District are comfortable that $120,000.00 can be taken from the pipeline installation contract (SEJ-1) without deleting any of the scope of the project. The section labeled “Final Cost Estimate” of this report gives detail of this determination was made. This will result in a net overrun of $384,915.00. Subsequent sections of this report give more details regarding costs and hnding. The Commissioners have elected to pursue hnding to finance the additional money made necessary by the $384,915.00 overrun. As with all construction projects, it is imperative to maintain a safeguard for building and a contingency fund. The contingency for this project contained in the revision to the preliminary engineering report was set at $236,300.00. Considering that the bids have been received and a certain amount of question has been resolved, the contingency for this project has been reduced to 5% which is equivalent to $140,499.00.

TABULATION OF BIDS Enclosed in Appendix A are copies of all bids received for this project. The following pages include tabulations of those bids reflecting the unit prices and the project totals. The apparent low bidder for Contracts SEJ-1 and SEJ-2 are:

CONTRACT SEJ-1 Kenney, Inc. P.O. Box 1305 Mt. Sterling, Kentucky 40353

$2,421,578.00 As submitted $2,301,578.00 To be revised by change order

CONTRACT SEJ-2 Fisher Tank Co. P.O. Box 458 Cropwell, AT, 35054

$508,400.00

As discussed in the “Statement of Purpose” the Commissioners have elected to reduce Contract SEJ-1 by $120,000.00. The reduction will be executed via change order simultaneously with signing of the contract and will revise the contract amount from $2,421,578.00to $2,30 1,578.00. Additional details regarding the cost reduction are included in the “Final Cost

Estimate” section. It should be noted that the bids submitted by Fisher Tank Co. was submitted without Addendum No. 1 which included a revised bid sheet. The reason for this omission given by the bidder, Fisher Tank Co., was that he did not receive the Addendum, via mail until afier the bid opening. The revised bid sheet separated the cost of paving the access road to each tank site from the site work and provided separate lines for the welded steel tank alternative and the glass lined tank alternative. There were no additions or subtractions to the total bid amount created by the

1

P I II

E I

3

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i

revised bid sheet, simply a rearrangement of how the costs are submitted. M e r a subsequent consultation with the District’s attorney and the commissioners, it was decided that the informality would be waived and that the bid from Fisher Tank Co. would be accepted.

FINAL COST ESTIMATE

The results of the bidding for Contracts SEJ-1 and SEJ-2 show that the total construction cost will be greater than that budgeted by the revision to the preliminary engineering report. As discussed by previous sections, contract SEJ-1 will be reduced by $120,000.00 via change order simultaneously with the signing of the contract. The reduction of $120,000.00 from the contract comes subsequent to a final audit of quantities in contract SEJ-1. The audit revealed that conservative measures built in to the pipeline line item estimates have resulted in an over estimation. Therefore, $120,000.00 can be trimmed from Contract SEJ- 1 without impacting the scope of work to be completed. This will not delete any of the customers proposed to be served by the project. A summary of the budgeted cost as well as the revised cost resulting from the received bids is given on the following page and calculates the budget overrun. The column labeled “Actual Costs” reflects project costs subsequent to reducing Contract SEJ-1. The budget estimates are taken from the August 11, 1997 revision to the preliminary engineering report submitted by this ofice. The financing estimate is taken from the January 5, 1998 letter of conditions from Rural Development. The line labeled bank loan has been added to cover the cost overrun of $384,915.00. The District will pursue the best long term financing avaiIabIe for this overrun, but will use a local bank if no more attractive terms are found.

FINAL ENGINEERING REPORT Southeastern Jessamine Co. Waterline Construction June 18,1999

TOTAL PROJECT SUMMARY

I

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E

a

BREAKDOWN OF COSTS: Preliminary Estimate DeveIopment

$2,362,900

$1 5,000

$0

Legal and Administrative

$66,700

$66,700

$0

$312,500

Contingencies TOTAL

I I t

RUS Loan

I

$346,1 38

($33,638)

$40,000

$40,000

$0

$236,300

$1 40,499

$95,801

$3,033,400

$3,418,315

($384,915)

Preliminary Estimate

FINANCING:

Actual costs

Difference

$1,901,000

$1,901,000

$0

$999,700

$999,700

$0

Jessamine Fiscal Court

$30,000

$30,000

$0

Applicant Contribution

$30,100

$30,100

$0

Applicant (Tap Fees)

$72,600

$72,600

$0

HUD-CDBG Grant

$0

Bank Loan TOTAL

i

($447,078)

$1 5,000

Interest

I'm

$2,809,978

Difference

Land and Rights

Engineering

I

Actual costs

$3,033,400

$384,915

($384,915)

$3,418,315

($384,915)

AGENCY APPROVALS

Since the onset of the planning stage of this project, many permits and approvals have been applied for and granted for this project. The following list gives a summary of these. A copy of each of the approval letters is contained in Appendix B. 0

0

0

0

0

Kentucky Heritage Council, Archaeological Reconnaissance and Clearance of National Register of Historic Places, March 13, 1998 Kentucky Transportation Cabinet, Encroachment Permits Ky 39 Sulphur Well Road, Permit No. 07-0738-98, 10/23/98 Ky 1268 Sugar Creek Road, Permit No. 07-0729-98, 10/23/98 Ky 1541 Chrisman Mill Road, Permit No. 07-0737-98, 10/23/98 Kentucky Division of Water, Water Resources Branch, Determination of Stream Construction Permit not required, September 10, 1998. In accordance with 401 KAR 4:050, Section 2 Division of Water, Drinking Water Branch, Permit No. DW # 0570249-98-002 for water system improvements, October 15, 1998 Jessamine Fiscal Court Easements to construct on county rights of way includes 28 locations.

RATE CALCULATIONS The proposed projec is an extension of an existing water district and, therefore, the rate structure of the existing water district will be modified in order to repay the funds borrowed for this project. The new rates were calculated in accordance with Rural Development standards employing a Water User Analysis and a Proposed Budget for Existing users, New users as well as combined Existing and New users. The Debt repayment calculated on the “Proposed Budget - New Users - Extension Only” is based on two separate loans. (1) The bulk of the funding will come from Rural Development as anticipated in the preliminary engineering report. The payments for that loan are calculated based on a 40 year term at 5.25% per Gene Floyd (June 17, 1999). The rate could be lower at the time of closing, but cannot go higher that 5.25%. (2) The remaining funding (cost overrun) is conservatively anticipated to come from a local bank. See previous section “ Final Cost Estimate” for additional information regarding source of additional funding. The payments for that loan are calculated based on a 20 year term at 7.0%. Appendix C contains a copy of the rate calculations. The new rate table proposed is listed on the following page. In addition to the modification to the rate structure, a surcharge will be assessed to new users in the Southeast portion of the District (the project area). The surcharge will be a flat rate of $6.50 per month per customer.

RATE EXHIBIT Southeast Jessamine Rural Water Extensions June 18,1999

PROPOSED RATES 3/4" X 5/8l Meter First Next Next Next Next Over

1I' Meter First Next Next Over

2000 gallons 2000 gallons 2000 gallons 10,000 gallons 8000 gallons 24,000 gallons

Connection Fee = $21 .OO $4.85 $4.75 $4.65 $4.55 $4.45

$550.00 (MINIMUM BILL) per 1000 gallons per 1000 gallons per 1000 gallons per 1000 gallons per 1000 gallons

10,000 gallons 6000 gallons 8000 gallons 24,000 gallons

Connection Fee = $58.80 $4.65 $4.55 $4.45

$675.OO (MINIMUM BILL) per 1000 gallons per 1000 gallons per 1000 gallons

24,000 gallons 24,000 gallons

Connection Fee Subject to Approval $123.10 (MINIMUM BILL) $4.45 per 1000 gallons

2"Meter First Over

An additional $6.50 surcharge will be assessed to customers served from lines in the project area.

CONCLUSION AND RECOMMENDATION The apparen low bidders for Contracts SEJ-1 and SEJ-2 are Kenney, Inc. and Fisher Tank Co. respectively. The combined bids result in the cost overrun for the project $384,915.00 after the aforementioned change order revision. It is the engineer’s recommendation that additional finding be obtained from a local bank for the additional monies required to complete the project. If more attractive terms can be found through other sources, finding through those sources should be pursued. Further it is the Engineer’s recommendation that the project proceed as it is designed and that the apparent low bidders be awarded the Contracts contingent on a $120,000.00 change order being executed at contract signing for Contract SEJ-1. Rate

calculations included herein are based on the anticipation that 309 new customers will be added to the water district by the time the construction begins. As of this date, the water district has either collected a contract or has actually hooked up service to over 309 customers.

CERTIFICATION OF OWNER'S CONSULTING ENGINEER

I, the undersigned L. CHRISTOPHER HORNE, PE the duly authorized and acting engineering agent of the JESSAMINE SOUTH EEKHORN WATER DISTRICT' do hereby

[email protected] follows:

I have examined the plans and specifications for CONTRACTS SEJ-1 and SEJ-2, SOUTHEAST JESSAMINE RURAL WATER EXTENSIONS AND STANDPIPE CONSTRUCTION, as well as the FINAL ENGINEERING REPORT and I am of the opinion that the project as designed and presented is engineered correctly, hrther our calculations and hydraulic analysis show the system to be capable of proper operation.

APPENDIX A

XUS S d l e t i n 1780-13 Attachment 3 31D

KENNEY, I N C . ( h e z e i n a f t e r c a l l e d " ~ I D i 2 E ~," )o r g a n i z e d azd e x i s t i n g + i & r che S t a c e of Kentucky doing b c s i z e s s as a corporation * . 'lo

3rocosal of

laws

J e s s m i n e S o u t h E l k h o r n Water D i s t r i c t N i c h o l a s v i l l e , Kentuckv (hereinafcer c a l l e r i i l ~ ~ >) ~ . z"

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- -

C o n t r a c t SkJ-1, Water D i s t r i b u t i o n Systein, S o u t h e a s t J e s s a m i n e R u r a l Water P r o i e c t i n s c r i c t accordance with t h e C O ~ ~ D ~ OC C TI ~ ~ S ~ ~jllic3.z ~S, e:::

scaced Selow.

.

ciriie set fcrz;? ::lerei=,

=?ri ac t k e p r i c e s

1. 6": PVC -Water Main ~ 1 2 0 0

LF

163500

2 . 6 " PVC W a t e r Main c1250

LF

60000

3. 6" Duct. I r o n BF Water Main;cl300

5630

6 " M J Duct. ea I r o n Gate V d V e

138

5 . 5-1/4" F i r e . . . .ea H y d r a n t Assembly

100

ea

85

7 . Bore a n d C a s e

LF

555

8. Water S e r v i c e w/o PRV

ea

260

9 . Water S e r P i c e w/ PRV

ea

114

4.

6.

1" A i r Release

Asn.

.

670

10

*

President '1 r

(606) 498-3686 .

'Phone.N W e r

HAXLAN C. KENPJEY Zrinc ~ e n e KENNEY,

INC.

F i m N m e P.O.

Box 1305

Addr e s s

Mt. Sterling, K Y City/ Zip

SEAL (if,bid is by c o r p o r a t i o n )

40353

RUS B u l l e c i n 1 7 8 0 - 1 3 Aitachnent 4

:mOX

&L

XZN 3” TXZSS P E S E X T S , that we, t:ke

undersisned,

KENNEY , INC .

K

a s P r i n c i p a l , and FRONTIER INSURANCE COMPANY as Surety, .are, hereby h e l d Disc mx : ix t h e p e n a l 2nd f i m l y b0ur.d UZ:O Jessamine S. Elkhom Water a s 0 s m of 5% of Amount Bid for t h e Fa-ynen; of which, w e l l ana truly t o be made, we h e r e j y j o i x i l y a n d s e v e r a i l y biza o u r s e l v e s , s u c c e s s o r s and a s s i q s . s icze d , t h i s 12th Cay c f 14av ,

--

323, a c t a c h e d k e r e c o a r i d :?ereb:J lllsldea part h e r e o f

to e z t e r i n t o a

Contract SEJ-1 Water Distribution Systen, Southeast Jessamine

CCntraCZ i n w r i t i x , f o r ~ : ? e

Rural Water Project

(a)

I f said 513 s h a l l be r e j e c t e d , c r

..

( 3 ) If s a i d 513 shall be acce?cea a x i t h e ? r i n c i c a l s h a l l e x e c E t e and d e l i - i e r a c c ~ t r ~ i czt t k e F c n cf C o z ~ r a c tatiackx:e.?c h e r e t o ( 2 r o p e r l - y c c n 3 l e t e d i.r? a c c o r d a c e with s a i c ! 3 I D ) and skall f u r z i s h a 2OhD f o r f a i t h f u l c e r f c z n a n c e of s a i d c m t r a c t , azd f c r t h e paymer.t of a l l 2ersor.s p e r f c m i n g l & o r f z n i s h i x g c a r e r i a l s i n ccx?ec=ior? therewic!?, a n d s h a l l in a l l o t h e r r e s p e c t s F e r f c m theagreement creaieci 5 y t k e acceFtar,ce of s a i d 313, t h e 2 this. c b l i g a t i c n s h a l l Z e voi.‘,, c t h e r x i s e i h s same s h a l l r e m a i n i n f o r c e . s. e i n g e G r e s s l y * a S e r s t c o d and a g r e e d t ? a t t h e azc effect; liabiliiy cf t h e S u z e ~ yf o r ar?y and a l l c l a i m s kereixde: s h a l l , i~ EO e - J e z t , exceed t:?e 2 e z a l a m c ~ y tcf t h i s o 5 1 i s a t i x as h e r e i n szaced.

,;

.

_-.-- - . . .-.

:-

. ... -... .

.

USDA-FmHA . Form F m H A 4006 {Rw. 12-16-75)

.

.

._.

.

.-

...

.

,,

.

.- .__

...

.

..

(

1

.. .- -.- . .... .

.

COMPLIXVCE STATEMENT

This stztement relztes to a proposed contrect with .. J e s s a i r t i n e S o u t h E l k h o r n Water D i s t r i c t ';. .(Name of b.orrower or grantee) w h o expects to 5 m e .the c. o n t i x t w i t h =&tame fmt h h p + s H c d e Administration, 1

United States Department of Agriculture ( w h e t l e r by 2 loan, ,orant, loan insunnce, g u a n n t e e , or o t h e r f o h n of financial assistznce). I a n the-undersiged bidder o r prospective contrzctor. I represent that - - - - -

i .. .I

0.

have, .have not, partici?ated in a previous contract or subcontract subject to executive order .1.1246 (idg2rdiz.g equal employment opportunity) or a preceding '

Si.riil2r Executive order.

n

0

hzve n o t , 2. I f I hive participated in such a c o n t i a c t or subcontract, I have, filed 211 compliance ieporis t h a t 1 hzve been required t o file in connecrion with t h e contizct or subcontract. If t h e proposed contrzct is for S50,OOO cr m o r e 2.nd I have 5O.or more employees, I also represent that - - have, 3.. I hiye not previously h2d contizcts subject to t h e written zfiirmafive action piogiam iequirenents of t h e Secretary of L b o r . 4. If I have participated in such 2 c o n t z c t or s ~ b c o n t i 2 c t ,I have, have n o t ,

0 '

0

developed 2nd placed c n file a t ezcn establishment affirmative action progrzms 2s iequiied by t h e rules 2nd regulations of t h e S e c e t u y of Labci. I underst2nd that i f I have failed to file 2ny compliance reports thzt hzve been required of me, I 2 r 1 act eIi5ble and will not b e eligikle t o have n y bid considered Oi to enter into t h e proposed c o n t r x t unless and until I n & e a n zrrzngement i e g ~ d i n gsuch re?orts that is szrisfectory to rhe Farmeis Home Administration o r t o t h e ofiice where the reports a r e required i o be filed.

I also certify that I d o not maintain or piovide f o r m y employees any segregzted fzcilities a t 2ny of my estzblishments, and t h z t I d o n o t permit my employees t o p e r f o m t h e i r services a t 29y location, under m y control, where segregzted fzcilities are maintzined. I certify further i5zt I will cot maintain or 2rovide for m y employees zny segregzted facilities zt any of m y establishments, and t h a t I will n o t p e m i t m y employees t o p d o m their services z t zny location, under my c o n t r o l , where s e r e g a t e d itcilities are m a i n t a i ~ e d . I agree thzt 2 breach of this certification is 2 violztion of t h e Equ21 Oppotlunity clause in m y contract. As used in this certificztion, t h e t e r m "segregated facilities" means any waiting rooms, hork areas, rest rooms and wash rooms, restaurants 2nd other eating areas, t i m e clocks, locker rooms and other storage o r dressing arezs, parking lots, drinking fountains, recreztion or entertainment arezs, transportation, and housing ficilities provided for employees which 2re segresated by explicit directive o r are in fact segregated on the basis of race, creed, color, or nation21 or;gin, beczuse of habit, local custom, or otherwise. I further agree that (except where I have obtzined i d e n t i d certificztions for proposed subcontrzcton for specific time periods) I will obtzin identic21 certificztions from proposed subcontractors prior t o the awzrd of subcontracts exceeding S10,OOO which are not e x e m p t from the provisions of the Equal OppOrCtunit-y clwse; that I will retain such certifications in m y files; 2nd that I will forwzrd t h e following notice t o such proposed subcontractors (except where t h e proposed s u b c o n t r a c ? o n have submitted i d e n t i d certifications for specific time periods): (See Reverse).

Position 6

.FmHA 400-6 (Rev. 1 2- I 6-7 5

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIR~+VENTSFOR CERTIFICATIONS OF NOH-SEGREGATED FACILITIES

A certification of N o n s e g e g t e d Facilities, 2s required by the May 9, 1967, (32F.R. 7339, May 19, 1967) on Elirninztion of Segregated Fzcilities, by the

i

of Labor, n u s t be submitted prior to t h e 2w2rd of 2 subcontrect exceeding 510,000 wXch is n o t exempt from the prokisions of t h e Equzl Opportunity clausz. The certification miy , be -submitted either for each subcoatr-ct o r for 211 subcontrzcts during 2 period (Le., Ii I quarterly, semiainuzlly, Oi mnuzlly).

NOTE: The penzlr)l for n r l i n l g fzlse s t r t e n e n t s in offers is piescri5ed in 18 U.S.C. 1001.

P.O. .-

Box 1 3 0 5

.-

Nt. Sterling, KY 4 0 3 5 3 A d d r c s (irz!x&:

. -

-

Z+ W ; )

. -.

..

.-

I

..

...-

F0HA I n s t r u c t i o n 1940-4 E x h l b l t A-1 C ~ T I F I C A T T O NFOR CONTRACTS, GRAhTS A N D LOANS The u n d e r s i g n e d c e r t i f i e s ; t o t h e b e s t of his o r h e r knowledge and b e l i e f , that: -.

1. No F e d e r a l a p p r o p r i a t e d f u n d s h a v e b e e n p a l d o r u i l l be p a i d , by o r c n b e h a l f of t h e u n d e r s i g n e d , t o any p e r s o n f o r l n f l u e n c i n g o r a t t e m p t i n g t o i n f l u e n c e an o f f i c e r o r e m p l o y e e o f any a g e n c y , a Member o f C o n g r e s s , a n o f f i c e r o r e m p l o y e e o f C o n g r e s s , o r an e m p l o y e e of a Member o f ' c o n g r e s s i n c o n n e c t i o n w i t h t h e a w a r d i n g o f any F e d e r a l c o n t r a c t , t h e o.aking o f a n y F e d e r a l g r a n t o r F e d e r a l l o a n , and t h e e x t e n s i o n , c o n t i n u a t i o n , r e n e w a l , amendment, o r n o d i f : c a t i c n of a n y . F e d e r a l c o n t r a c t , g r a n t o r l c a n . . . . I

2. i f any f u n d s o t h e r t h a n F e d e r a l a p p r o p r i a t e d f u n d s h i v e been p a i d o r will be p a i d t o any p e r s o n f o r i n f l u e n c i n g o r a t t e m p t i n g t o i n f l u e n c e ' a n o f f i c e r o r employee o f a n y a g e n c y , a Member o f C o n g r e s s , a n o f f i c e r o r employee o f C o n g r e s s , o r a n e m p l o y e e of a H e n b e r o f C o n g r e s s i n c o n n e c t i o n w i t h t h i s F e d e r a l c o n t r a c t , g r a n t o r l o a n , t h e Undersigned s h a l l complete and LLL, " D i s c l o s u r e o f L o b b y i n g A c t i v i t i e s , " i n a c c o r d a n c e s u b n i t S t a n d a r d Form with i t s instructions.

-

_.

The u n d e r s i g n e d s h a l l r e q u i r e t h a t t h e l a n g u a g e o f t h i s c e r t i f i c a t i o n 7 be i n c l u d e d i n t h e a w a r d d o c u m e n t s f o r a l l s u b a w a r d s a t a l l t i e r s ( i n c l u d i n g c o n t r a c t s , s u b c o n t r a c t s , and s u b g r a n t s u n d e r g r a n t s end l o a n s ) and t h a t ell s u b r e c i p i e n t s s h a l l c e r t i f y and d i s c l o s e a c c o r d i n g l y . ' T h i s c e r t i f i c a t i o n i s a m a t e r i a l r e p r e s e n t a t i o n o f f a c t upon which r e l i a n c e was p l a c e d when t h i s t r a n s a c t i o n v a s made o r e n t e r e d into. S u b n i s s i o n o f t h i s c e r t i f i c a t i o n i s a p r e r e q u i s i t e f o r making o r e n t e r i n g i n t o t h i s t r a n s a c t i o n i o p o s e d by s e c t f o n 1352, t i t l e 3 1 , U.S. Code. Any p e r s o n who f a i l s t o f i l e t h e r e q u i r e d c e r t i f i c a t i o n s h a l l be s u b j e c t t o a c i v i l p e n a l t y o f not' l e s s t h a n $10,000 and n o t more t h a n $100,000 f o r e a c h s u c h f a i l u r e .

May 1 2 , 1 9 9 9 (date)

Secretary (title)

000

(05-21-91)

PN 171

'

,

THE AMERICAN INSTITUTE OF ARCHITECTS

AIA Document A370

Bid Bond KNOW ALL MEN BY

THESE PRESENTS,

that we KenneYt Inc.

Were insert full name and address or legal title of Contractor)

105 Paris Pike, P. 0. Box 1305, Mt. Sterling, KY 40353 as Principal, hereinafter called the Principal, and Frontier Insurance Company

(Here inwrl full name and address or ley1 title of Suretyl

187 Graylynn Drive, Nashville, TN 37214 a corporation duly organized under the laws of the State of NEW YORK as Surety, hereinafter called the Surety, are held and firmly bound unto Jessamine South Elkhorn Water District, 200 West Maple Street, Nicholasville, KY 40356

(Here insert full name and address or l e p l title of Owner)

as Obligee, hereinafter called the Obligee, in the sum of five percent of the amount bid I Dollars ($594 of bid 11 for the payment of which sum well and truly to be made, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the Principal has submitted a bid for (Here insert full name, address and description of prqecl)

Contract SEJ-1 Water Main

- .

NOW, THEREFORE, i f the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract with the Obligee in accordance with the terms of such bid, and givc such bond or bonds as may be specified in the bidding or Contract Documents with good and sufficient surety for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof, or in the event of the failure of the Principal to enter such Contract and give such bond or bonds, i f the Principal shall p y to the Oblige the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the Work covered by said bid, then this obligation shall be null and void, otherwise to remain in full force and effect.

Signed and sealed this

12th

day of

May

i

m

m

We)

James T. Smith, Attorney-in-Fact

AIA DOCUMENT AS10 BID BONO AIA @ FEBRUARY 1970 ED THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 N.Y. AVE., N.W., WASHINGTON, O.C. 2-

@

Printed on R-led

Paper

9/93

1

d f

&kb

lNSURANCE COMPANY

ROCK HILL NEW YORK 12775-8000 (A Stock Company)

POWER OF ATTORNEY g n o b $11 @& 'inhP0e vprC0Cnt0: That FRONTIER INSURANCE COMPANY, a New York Corporation, having its principal office in flock Hill, New York. pursuant to the following resolution, adopted by the Board of Directors of the Corporation on the 4th day of November, 1985: '

"RESOLVED, that the Chairman of the Board, the President or any Vice President be, and hereby is, authorized to appoint Attorneys-inFact to represent and act for and on behalf of the Company to execute bonds, undertakings, recognizancesand other contractsof indemnity and writings obligatory in the nature thereof, and to attach thereto thecorporateseal ofthe Company. in the transaction of its surety business; "RESOLVED, that the signaturesand attestationsofsuch officers and the seal of the Company may be affixed to any such Power ol Attorney or to any certificate relatingthereto by facsimile, and any such Power of Attorney or certificatebearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company when so affixed with respectto any bond, undertaking, recognizanceor other contract of indemnity or writing obligatory in the nature thereof; "RESOLVED. that any such Attorney-in-Fact delivering a secretarial certification that the foregoing resolutions still be in effect may insert in such certification the date thereof. said date to be not later than the date of dellvery thereof by such Attorney-in-fact."

This Power of Attorney is signed and sealed in facsimile under and by the authority of the above Resolution.

James T. Smith dohn B. Manus Roger A. Neal Raymond M. Hundley Brook T. Smith Kathy Hobbs , in the State of Kentucky

DOES HEREBY MAKE, CONSTITUTE AND APPOINT

Louisville

01

its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred in its name, place and stead to sign, execute, acknowledge and deliver in its behalf, and as its act and deed, without power of redelegation. as foilowS: Bonds guaranteeing the fidelity of persons holding places of public or private trust; guaranteeing the performanceof contractsother than insurance policies; and executing or guaranteeing bonds and undertakings required or permitted in all actions or proceedingsor by law DOLLARS;and to bind FRONTIER allowed; INAN AMOUNT NOTTO EXCEEDTHREE MILLION FIVE HUNDRED THOUSAND ($3,500,000.00) INSURANCECOMPANY therebyasfullyandto thesameextentas ifsuch bondorundertaking wassignedbythedulyauthorizedofficersof FRONTIER INSURANCE COMPANY, and all the acts of said Attorney(s)-in-Fact pursuant to the authority hereingiven are hereby ratifiedand confirmed. &I @ h l P 0 0 YfpreOf, FRONTIER INSURANCE COMPANY of Rock Hill, New York, has caused this Power of Attorney to be signed by its President and its Corporate seal to be affixed this ,I9 97 . 29th day of

April

State of New York County of Sullivan

ss.:

On this 29th day of April , 19 97 ,before the subscriber, a Notary Public of the Slate of New York in and for the County of Sullivan, duly commissionedand qualified, came HARRY W. RHULEN of FRONTIER INSURANCE COMPANY to me personally known to be the individual and officer described herein, and who executed the preceding instrument and acknowledged the execution of the same,and being by me duly sworn.deposed and said,that he is the officer of the Company aforesaid,and that the seal affixed to the preceding instrument is the CorporateSeal of the Cornpany,and the Corporate Seal and signature as an officer were duly affixed and subscribedto the said instrument by the authority and direction of the Corporation, and that the resolution 01 the Company, referred to in the precedinginstrument is now in lorce.

$n

BeSfimonp P 4 e l . d I have hereunto set my hand, and affixed my official seal at Rock Hill, N8W York. the day and year above written.

. Notaw NANCY V. PlERRO u Public Slate of New York SulliGn County Clerk's No. 2395 Commission Expires July 8,1998

CERTIFICATION I, JOSEPH P. LOUGHUN, Secretary of FRONTIER INSURANCECOMPANYof RockHill, New York,do hereby certify that the foregoing Resolution adopted by the Board of Directors of this Corporation and the Powers of Attorney issued pursuant thereto, are true and correct. and that boththe Resolution and the Powers of Attorney are in full force end effect. day of P i t n e e 0 PherPOf, I have hereunto set my hand and affixed the facsimile seal of the corporation this 12th

gn

I I I I I I I

RUS i d. l e.t. i n 1 7 8 0 - 1 3 . . Attachment 3

Drccoses t o p e r f c r a a l l i?'OX:( - -

far t h e c c x s t r u c t i c n of

C o n t r a c t SEJ-1, Water D i s t r i b u t i o n S y s t e m , S o u t h e a s t J e s s a m i n e R u r a l Water P r o i e c t i n s c r i c : a c c o r d a n c e bith t h e COhT.XACT DOCbXEhTS, s t a c e d below.

* & i c L k. iL - . r

.. ---..z

rize S E E f c r c h E k e r e i n , a d a t the c r i c e s

I I I I I I I I I I I

BiDDER h e r e b y a g r e e s to c o m e n c e KC3.K x x d e r t3is ccixzact c x o r b e f o r e a d a t e t o 5e s p e c i f i e d in t h e YOTiCX TO PFiOCSbD ani to f u l l y ccmplete ::?.e ?xO;ZCT ;.it:?in 365 consecutive c a l e z d a r days t h e r e a f t e r . f u r t h e r a g r e e s t o pay a s iio;?idated damages, t h e s u n cf $ 5 0 0 . 0 0 f c r o,tc:? c c n s e c c z i v e c a i e r i d a r day Chereafzer as z r o v i d e d i n S e c t i c x 15 c f t h e G z n e r a l Cozci~ions.

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.

. .,. . _ .. .

RUS Bulletin 1780-13 .~ Attachment 4

ZaOiq >~,i, :~1?1? 3?i

FXZSZhqS,

that we, the

rr

nxdersiczea,

a s Prizcipal, and as Surety, .are, hereby held a n d f i m l y bOLid ' Z Z ~ O as O'v%Zx in tZe penal s u m of fcr che pa-penc of x'nich, w e l l and truly to be nade, -22 hereby jointly and severaily bir.a oilrselves, successcrs and assicns. Sicned, this day of , 13 . he ~onditicnof tke above oblication is such t:?ar. a certain whereas Eke ?rir.cical has scbzicced E a 313, attached hereco a n d ?ereby ;;ladea par-, hereof :o eilcer irito a ccntract in writix, f c r rke

-

(j) If

s a i d 313 shall be accepced 2 x 6 the Trincipal shall execute

in the Fern cf Ccnzract atcachnext h e r e t o ( 2 r o p e r l y cszpleted ir? accordance xi;:? said 3ID) and s h l l f.;r;lish a 20hD fcr faichful cerforzance of s a i d ccztract, and fcr the payaezt of all sersczs E;erfcrziina l a b o r f u r n i s h i x g naterials in ccr,r,ecticx : h e x e x .~ t.n , azc shall in all o t k e r respeccs 2:erforx the tareenent creacec by t k e acceptance of said 319, then this cbligaiicn shall 'ze v o i 6 , otherwise ::?e same shall renaiil in force ana erzecc; it being expressly ~ r . d e r s c o o aand agreed that t h e l+abilii;/ C? t:?e Sar:ery fcr any and a l l ~1ai;r.s ;?erelz?der s h a l l , in EO e-zezt, exceed che g e z z l amoczt cf tkis cbli5aricn a s h r e i n and deliver a ccntracz

d

. --

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scated.

I I I I I I I I I I I I I I I I I I I

RUS Sulletin 1760-13 Xttac;inent 3 Page 2

3x0 SCXZDU!!Z

--

SOT";: ~ I D Ss h a l l inclcde s a l e s :ax znd a l l o t k e r a p p l i c t b l e t z x e s ar\.d

fees.

1. 6". PVC ..Water

LP

!blain c 1 2 0 0

2 . 6 " PVC Water !Jlain c1250

L7

3. 6 " D u c t . I r o n BF Water Main ~ 10 0 3

4 . 6" M J Duct. ea I r o n Gate V a l v e

$ DDZhQbJ:

applicable.

NOT3:

3IDS s h a l l inciute sales Lax and all other applicable caxes and

fees.

1. 6 " PVC .Water Main ~ 1 2 0 0

LF

$ 9 . 1 0

2 . 6 " PVC Water Main c 1 2 5 0

LF

$

3. 6 " Duct. I r o n Water M a i n : - c 1 3 0 0

BF

$

ea 4. 6" M J Duct. Iron G a t e V a l v e

$

Fire ea Hydrant A s s e m b l y

5. 5-1/4"

9.45

163500

$ 1,487,850.00

60000

$

5630

$

470.00

138

$

$ 2,000.00

100

$

26.35

$

475.00

85

$

7 . B o r e a n d Case

LF

$

65.00

555

$

8 . Water S e r v i c e w/o PRV

ea

$

655.00

260

$

Water SerTifce w/ PRV

ea

$

700.00

114

$

1" A i r R e l e a s e

- J

567,000.00

148,350.50

ea

6.

/

64,860 .oo

-1 I/

200,000.00

/

40,375.00

I/

Asm.

.

9.

3 6 , 0 7 5 . 0 0 ./ 170,300.00

/

7 9 , 8 0 0 . 0 0 ./

I I I I I I I I I 1 I I I I I I

11. C o n c r e t e

670

--

s >DO

ez.

5 2 ,8 0 0 . 0 0

T .?

v'

2 nc 2. s 2 3 2 n t .

12. S t r e l n .h!iter

10

s

28,000.00

./ /'

14.

--

i :.

PIzrker Tz?=

(find 6 7 ~ . 'phone.NLnber 7-

s

0.10

P.O.

225130

Box 4 3 9

Address

I I I

$ 5 7 . 0 0 0 - Q0

SEAL (if.bid is by c o r p o r a t i o n )

$ 22,913.00"'

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I--I I 1



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USDA-FmHA . Form F m H A 4 0 M {Rw. 12-16-75)

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COMPLIANCE STATEMENT

This statement relates to a proposed c o n t n c t with Jessamine So.uth Flkhorn Water District .(Name 01b,orrower or grantee) w h o expects to S m e .the contract w i t h usktaae f?kxsthFlrmArsHde Administration, . United States Department of Agriculture (whether by a loan, grant, loan insurance, guarantee, or other f o h n of finzncizl assistance). I a m the-undersigned bidder o r prospective 1

‘i.

contractor. I represent thzt - - - - -

i .. .I

0.

hive, . have not, participated in a previous contrzct o r subcontract subject f o executive order .1.1246 (regzrdizg equal employment opportunity) o r a preceding

similzr Executive order. hzve not, 2. If I have pzrticipated in such a contrzct or subcontract, I have, filed 211 compliance reports t h a t I hzve been required t o file in connection with t h e contrzct or subcontrict. If t h e proposed contrzct is for S50,OOO c r m o r e 2nd I hzve 50 or m o r e employees, I also represent that - - have, 3. I haye not previously had contrzcts subject t o t h e written iffirmaf i v e Ection piogram. requirements o f the Secretary o f Labor.

0



4. If I hzve participated in such a contract or subcontrzct, I

have n o t , have, developed 2nd placed o n file a t ezch establishment affirmative action progrzms 2 s required by the rules 2nd regulations of t h e Secretvy of Lzbor. I understznd rhit if I have failed to file 2ny compliance reports ; h i t have been required of me, I a m not e l ~ ~ b and l e will not be eligible t o have my bid considered or to enter into t h e proposed, contract unless and until I n & e an arrangement regzrding such reports thst is sztisfictory to rhe Fanners Home Administrition o r t o the office where the reports are required to be filed.

I also certify t h z t I d o not maintain or provide for my employees 2ny segregzted fzciljties a t any o f m y estzblishments, and t h z t I d o n o t permit my employees t o perform.their services a t 2ny location, under my control, where segrezzted fzcilities are maintzined. I certify further thzt I will not mzintzin o r provide for my employees any segregated facilities a t any o f my estzblishments, and t h a t I will n o t permit my employees t o p e r f o m their senices z t any location, under my control, where segregated fzcilities 2re maintaiied. I agree thzt a b r e x h o f this certificziion is a ~ i o l a t i o nof the Equal Opportunity clzuse in m y contract. As used in this certification, the term “segregzted fzcilities” means any wziting rooms, work areas, rest rooms and wash rooms, restaurznts 2nd other eating areas, time clocks, locker rooms 2nd other storage o r dressing areas, pzrking lots, drinking fountains, recreation or entertainment areas, trznsportation, and housing facilities provided for employees which 2re segregated by explicit directive o r are in fact segregated o n the basis of race, creed, color, or nationzl origin, because of habit, local custom, or otherwise. I further agree thzt (except where I have obtained identicd certificztions for proposed subcontractors for specific time periods) I will obtain identical certifications from proposed subcontractors prior t o the award o f subcontracts exceeding S10,OOO which are n o t exempt from t h e provisions o f the Equal O p p s t u n i t - y c l a m ; that I will retain such certifications in my files; and thzt I will forwzrd t h e following notice t o such proposed subcontractors (except where the proposed s u b c o n t r z c t o n have submitted identical certifications for specific time periods): (See Reverse).

Position 6

FmHA 400-6 (Rev. 12-16-75)

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.

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ir:'*.

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NOTICE T O PROSPECTIVE SUBCONTRACTORS O F [email protected] FOR CERTIFICATIONS OF NON-SEGREGATED FACILITIES

A certification of Nonsege_~rtedFzcilities, as required by the May 9, 1967, (32F.R. 7339, May 19, 1967) on Elimination of Segregated Facilities, by the S e c r e t a i of Lzbor, must be submitted prior t o the award of 2 subcontrzct exceeding S10,oOO which is not exempt from t h e probisions of the Equal Opportunity clause. The certification x z y be 'submitted either for ezch subcontrzct o r for 211 subcontracts during a pciiod (i.e., quarterly, semizrlnuzlly, or ainuzlly).

\ j

/

i

NOTE: The penzlty for nzking fzlse statements in offers is piescribed in 18 U.S.C. 1001.

-

Owinasville. KY 4 0 3 6 0 Address (ir.clzc&ng Z+ &e)

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F0HA I n s t r u c t i o n 1940-4 E x h l b l t A-1 CERTIFICATION FOR CONTRACTS. GRANTS AND LOANS

I 1 1 I I

il i I I

d The u n d e r s i g n e d c e r t i f i e s ; t o t h e b e s t of h i s o r h e r knowledge a n d b e l i e f , that:

1. No F e d e r a l a p p r o p r l a t e d f u n d s h a v e been p a 3 d o r u i l l be p a i d , by o r o n b e h a l f of t h e u n d e r s i g n e d , t o a n y p e r s o n for l n f l u e n c i n g o r a t t e m p t i n g t o i n f l u e n c e an o f f i c e r o r e m p l o y e e of a n y a g e n c y , a Member o f C o n g r e s s , an o f f i c e r o r e m p l o y e e o f C o n g r e s s , o r a n employee o f a Member o f ' c o n g r e s s i n c o n n e c t i o n w i t h t h e a w a r d i n g o f a a y F e d e r a l c o n t r a c t , t h e making o f a n y Federal g r a n t o r Federal loan , and t h e extension , c o n t i n u a t ion , renewal, amendment, o r r n o d i f j c a t i o n o f a n y - F e d e r a l c o n t r a c t , g r a n t o r l o a n . :. 2. I f any f u n d s o t h e r t h a n F e d e r a l a p p r o p r i a t e d funds have been p a l d o r wlll be p a i d t o a n y p e r s o n f o r i n f l u e n c i n g o r a t t e m p t i n g t o i n f l u e n c e ' a n o f f i c e r o r e m p l o y e e o f any a g e n c y , a Member o f C o n g r e s s , a n o f f i c e r o r employee o f C o n g r e s s , o r an e m p l o y e e o f a Member o f C o n g r e s s i n c o n n e c t i o n u l t h t h i s F e d e r a l c o n t r a c t , g r a n t o r l o a n , t h e u n d e r s i g n e d s h a l l complete and s u b m i t S t a n d a r d Form LLL, " D i s c l o s u r e of L o b b y i n g A c t i v i t i e s , " i n a c c o r d a n c e with its instructions.

-

3. The u n d e r s i g n e d s h a l l r e q u i r e t h a t t h e l a n g u a g e o f t h i s c e r t i f i c a t i o n be i n c l u d e d i n t h e award d o c u m e n t s f o r a l l s u b a w a r d s a t a l l t i e r s ( i n c l u d i n g c o n t r a c t s , s u b c o n t r a c t s , and s u b g r a n t s u n d e r g r a n t s and l o a n s ) and t h a t a l l s u b r e c j p i e n t s s h a l l c e r t i f y and d i s c l o s e a c c o r d i n g l y . . T h i s c e r t i f i c a t i o n i s a m a t e r i a l r e p r e s e n t a t i o n of f a c t upon w h i c h r e l i a n c e u a s p l a c e d when t h i s t r a n s a c t i o n was made o r e n t e r e d i n t o . S u b m i s s i o n of t h i s c e r t i f i c a t i o n i s a p r e r e q u i s i t e f o r making o r e n t e r i n g i n t o t h i s t r a n s a c t i o n imposed by s e c t i o n 1352, t i t l e 3 1 , U.S. Code. Any p e r s o n who f a i l s t o f i l e t h e r e q u i r e d c e r t i f i c a t i o n s h a l l be s u b j e c t t o a c i v i l p e n a l t y o f not' l e s s t h a n S l 0 , O O O and n o t more t h a n $100,000 f o r e a c h s u c h f a i l u r e .

a I 1 1 I

,7

-'

kp,

( n a m e y

May :,-L \

President (title)

000

(08-21-91)

I

,.

PN 1 7 1

'

12,

1999 (date)

I Fidelity and Deposit Company POST OFFICE BOX 1227

OF MARYLAND

BALTIMORE, MD 21203

BID BOND

I

KNOW ALL MEN BY THESE PRESENTS:

NOW, THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a contract with the Obligee in accordance with the terms of such bid and give such bond or bonds as may be specified in the bidding or contract documents with good and sufficient surety for the faithful performance of such contract and for the prompt payment of labor and material furnished in the prosecution thereof, or in the event of the failure of the Principal to enter into such contract and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the work covered by said bid, then this obligation shall be null and void, otherwise to remain in full force and effect. 12th E‘Iay 99 Signed and sealed this........................................................ day of........................................................ A.D., 19______

FIDELITY AND DEPOSIT COMPANY OF MARYLAND 1

C3251-5OM. 1-92 IO American Insufufe of Archilecu Document A-310. February 1970 Edition.

Conforms

-

Surety A//!..

f /

I Power of Attorney

FIDELITY AND DEPOSIT COMPANY OF MARYLAND HOME OFFICE: P.O. BOX 1227, BALTIMORE, MD 21203-1227 Know ALL MEN BY THESE PRESENTS: That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, a corporation of the State of Maryland, by W. B. WALBRECHER, Vice-President, and T. E. SMITH,Assistant Secretary, in pursuance of authority granted by Article V1, Section 2, o Company, which are set forth on the reverse side hereof and are hereby certified to be in ful date hereof, does hereby nominate, constitute and appoint Ronald B. LeMaster, Mary A. V Carol L. Schisler and Timothy R Perry, all of South deliver, for, and on its behalf as surety, and as its act s and undertakings and the execution of such bonds or unde

set forth on the reverse side hereof is a true copy of

The said Assistant Secretary does hereb

ssistant Secretary have hereunto subscribed their names and DEPOSIT COMPANY OF MARYLAND, this 11th day of

affied the Corporate Seal of the September, A.D. 1998. ATTEST:

FIDELITY AND

SIT COMPANY OF MARYLAND

Assistant Secretary

JK B. Walbrecher

Vice-President

SQkofMaryland county of Baltimore On this 11th day of September, A.D. 1998, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came W. B. Walbrecher, Vice-President and T. E. Smith, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn, severally and each for himself deposeth and saith, that they are the said officers of the Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and that the said Corporate Seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and f l i e d my Official Seal the day and year first above written.

My Co&issidExpires:

L1428-052-3323

August 1,2000

~

I It

II II

a I

1 Y

s E I I 1

a I

EXTRACT FROM BY-LAWS OF FIDELITY AND DEPOSIT COMPANY OF MARYLAND

“Article VI, Section 2. The Chairman of the Board, or the President, or any Executive Vice-President, or any of the Senior Vice-Presidents or Vice-Presidents specially authorized so to do by the Board of Directors or by the Executive Committee, shall have power, by and with the concunence of the Secretary or any one of the Assistant Secretaries, to appoint Resident Vice-Presidents, Assistant Vice-Presidents and Attorneys-in-Fact as the business of the Company may require, or to authorize any person or persons to execute on behalf of the Company any bonds, undertaking, recognizances, stipulations, policies, contracts, agreements, deeds, and releases and assignments of judgements, decrees, mortgages and instruments in the nature of mortgages,...and to affix the seal of the Company thereto.” CERTIFICATE ._. ..

I, the undersigned, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, do hereby certify that the original Power of Attorney of which the foregoing is a full, true and correct copy, is in full force and effect on the date of this certificate; and I do m e r certify that the Vice-President who executed the said Power of Attorney was one of the additional Vice-Presidents specially authorized by the Board of Directors to appoint any Attorney-in-Fact as provided in Article VI, Section 2, of the By-Laws of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND. This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following resolution of the Board of Directors of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND at a meeting duly called and held on the 10th day of May, 1990. RESOLVED: ‘‘That the facsimile or mechanically reproduced seal of the company and facsimile or mechanically reproduced signature of any Vice-President, Secretary, or Assistant Secretary of the Company, whether made heretofore or hereafter, wherever appearing upon a certified copy of any power of attorney issued by the company, shall be valid and binding upon the Company with the same force and effect as though manually affixed.” M TESTIMONY WHEREOF, I have hereunto subscribed my name and affuted the corporate seal of the said Company, this 12th

day of

1.ky

1999 9

Assistant Secreta?y

RUS N .l e. .t .i n 1 7 8 0 - 1 3 .

-.

Attachment 3

310

t h e S t a t e of ES

ci

" s I ~ E E x ~,~o) r g a n i z e d and existing-Trier doing busizess pi! r&+z*. To

t h e laws of

x;r-

t h e J e ' s s m i n e S o u t h ' E l k h o r n Water D i s t r i c t N i c h o l a s v i l l e , Kentuckv ( h e r e i n a f t e r c a l l e d It0h3YXt1)

.

In c c n p l i a n c e with y o u r Adverziserneat f o r Bids, 3ZDBZS h e r e b y p r c p o s e s t o p e r f o r m a l l WORK f o r t h e c c n s t r u c t i c n of

C o n t r a c t S E J - 1 , Water D i s t r i b u t i o n S y s t e m , S o u t h e a s t J e s s m i n e i n s c r i c t a c c o r d a n c e with t h e R u r a l Water P r o i e c t COpi.XACT

DOCUEhTS,

scaied belou.

x i t h i n ::?e

iiZS SEt

f c r t h :>erei,?, 6 a t :he

prices

.

cf a j c i n t 3iD e a c h pariy i k e r e t o c e r t i f i e s a s to ~ E So l ; n c r g a > i z a t i o i l , t h a z t h i s 9x3 h a s 'seen a r r i v e d a t i n d e p e n d e z c l y , w i t h o u c anSuliEtioa, c c n m x i c a t i c n , c r agreemen= 2 s t o any r a t t e r r e l a t i f i g t o t!~is313 w i t h any o t h e r BIDDEX o r wi:n any c o n p e t i t c r .

BIDDxX h e r e b y a g r e e s to ccimezce h'CxR z k e r i h i s CCZ'I'BC: cx o r b e f o r e a d a t e to be s p e c i 5 i e d in t h e XO'i'ICS TO ?2OCEZD a z a t o f i l l l y corzplete t h e ?ROZZCT --*it:?iz 365 c o n s e c u t ire c a l er?dar days t h e r e a f t e r . Z-IDDSX f c r z k e r a g r e e s t o zay a s lic;-ui.dated damages, t3e SEI of $ 5 0 0 . 0 0 fsr oath c c n s e c n z i v e c a l e n d a r day t h e r e a f t e z a s e r c v i d e d i n S e c t i c a IS of t k e G m e r a l Ccxci:Fo~s.

.

RUS Sulletin 1780-13 XttacLient 3 Page 2 '

XOTX: 2:D.S fees..

.

shall i n c l c C e sales :ax and all cther applicable t a x e s and

1. 6". PVC ..Water Nain c 1 2 0 0

LF

163500

2.

6 " PVC Water !.lain c1250

LF

60000

3.

6" Duct. I r o n BE' Water Main ~ 10 0 3

5630

4.

6" M J Duct. ea I r o n Gate V a l s e

138

5.

5-1/4" F i r e ea H y d r a n t Assembly

100

6.

1" A i r R e l e a s e Asm.

ea

85

7.

Bore a n d Case

LF

8. Water S e r v i c e

ea

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w/o PRV

$

p.3-

555 260 06

9. Water S e r P i c e w/ PRV

ea

$

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114

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11. C o n c r e t o

67 0

Enc+sea2nt'

12.

10

13.

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14.

223130

DID

?-

SEAL

(if b i d is by corporation)

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RUS B u l l e t i n 1780-13 . . . . _ A t t a cfiien t 4

:mow

MZN 3Y

Txzsz

P.XZSZ\TS,

that we,

the

cnderslgied,

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as P r i n c i p a l , and as S u r e t y , .Are-h e r e b y h e l d E.nd f i r m l y boiL-.d z z t o a s OWNEX iz t h e p e n a l s u m of fcr t h e p a p e n t of which, w e l l a n d t r u l y t o be made, *&e h e r e b y j o i n c l y and s e v e r a l l y 5 i n a o u r s e l v e s , scccessors and a s s i g n s . Sicned, t h i s day of , 19 . The C o ~ d i t i c nof t h e above o b i i s a t i o n is s u c h t k t whereas t h e P r i ~ c i s a lh a s s c h i t t e d t 3 a certain 31D, a t t a c h e d h e r e t o and kere5.J ;;lade a parc h e r e o f t o e n t e r h t o a c c n t r a c ~i n w r i t i n g , f o r c h e

NO'd,

oxs,

-.--*-I

1. z z x z z

(a)

I f s a i d 313 s h a l l be r e j e c t e d ,

or

(b) If s a i d SI3 s h a l l 5e a c c e z t e d and t h e P r i n c i p a l s h a l l e x e c u t e a n d d e l i v e r a ccnzrac; ia the F c r m of C o z t r a c t attachr;,en'. h e r e t o ( ? r o p e r i y c c z , p l e t e d in a c c o r d a n c e w i t h s a i d B I D ) and s h a l l f u n i s : ? a BGhD f o r f a i t k f u l s e r f o m a n c e of s a i d c c z t r a c t , a n d f c r t h e pa).;;ient of a l l gersocs p e r f c , n i i q l a b c r f-crnishizg m a t e r i a l s i n ccrs.eccFcn c:?eres;ich, 2nd shall in a l l o c h e r r e s p e c z s perfcrm t h e a g r e e n e r . t c r e a t e d by i:?e a c c e p t a n c e of s a i d SID, t h e n t h i s ' .. c b l i c a t i c n s h a l l b e v c = o , o t h e r * . i s e t k e same s n a l l remain In f o r c e . . . and e f f e c t ; r t = e x q e q r e s s l y m d e r s c o o d and a g r e e d t h a c :he l i a b i l i t y of t h e Surery fcr any ar.6 a l l c l a i m s h e r e u ? d e r s h a l l , in R O e-Jer.c, e x c e e d t h e p z a l amcc.?t c f this o b l i s a c i c n , as h e r e i n siated.

USDA-FmHA . Form F m H A 4 0 0 6 {RH. 12-16-75)

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.

. . .

COMPLIAVCE STATEMENT

, .

+''

.,,

733 statement r e k k s t.o. a proposed contrcct with &+j&9 .(hrarne ofb,orrower or grantee). who expects t o f i m e .the c. o n t n c t with asistzllce f m ~ h h ~ W c zAdministntion, 5e United States Department of Agriculture (whether by a lozn, grant, loan insurance, euarantee, or other fohn of finzncial asistznce). I zrn the-undersigned bidder or prospective contractor. I represent that - - - - ..

L\&

.i.

I

i .. .I

60.

' h u e not,, participated in a previous contract or subcontrnct subject fo executiye order j.1246 (regzrding equal employment opportunity) o r a preceding similar Executive order. 2. I f I have pzrticipated in such a contizct or subcontrict, I d a v e , hzve n o t , filed all compliance reports that I hive been required t o file in connection with t h e c o n t r ~ c to r subcontrzct. .. I f the proposed contrzct is foi 550,000 or more &d I hive 50,cr more employees, I zlso represent tha 3. I -, :&2 c] haye not pre\:iously had conirzcts subject t o t h e wfitten affirnztive'zction program requirements of ihe Secretary of Labor. 4. If I have pzriicipzted in such 2 contrzct o r SUbCOntiiCt, I w a v e , c ] hzve n o t , developed 2nd placed on i7!e a t e z c h establishment iffirmztive zctioa programs 2s required by the rules and rer,u!;tions of the Secretzry of Lnbor. I understznd thzt if I have fzi!ed to file z 2 y complimce reporis that h2ve been reqciired of me, I 217 n o t eligible 2nd will not be eli$blc to hzve my bid considered or i o enter into t h e proposed, c o n t r x t un!ess 2nd u n t i l I =&e 2n anzngernent rezarding such reports thzt is satisfactory to ihe F ~ I T I ~ Home ~ S Xdninistrztion or to the office where the reports are required to be filed. I ilso certify thzt I d o not m2lnizin o r provide for my employees zny segegzted fzcilities i t any of my estiblishments, end t h z t I do not permit my employees to p e r f o n their services 2t zny location, under my ~0fiir01, where segregzted f2cilities zre mzjni2ined. I certify further that I will not mzintain or provide for my employees 2ny segregzted fzcilities a t any of my estzbikhmen!~, 2nd t h z t I will not p e m i t my employees t o p e r f o m their sepices a t zny locztion, under m y control, \vhere seg:egzted ficilities are mzintziied. I agree th2t a breach of this ceriificaiion is a Yiolation of t h e Equal O p p o d u n i t y clause in m y contract. A s used in this ceriificarion, the term "segregzted facilities" means any waiting rooms, work areas, rest rooms 2nd wash rooms, restzurznts 2nd other eating zreas, time clocks, locker rooms and other storage or dressing xeas, parking lots, drinking fountains, recreztion or entertainment zreas, transportztion, 2nd housing facilities provided for employees which 2re segregzted by explicit directive or zre in fzct segregated on the basis of rice, creed, co!or, or nation21 origin, because of habit, loc21 custom, or otherwise. I further agree that (except where I hzve o b t s n e d identicd cenificztions for proposed subcontractors for specific time periods) I will obtain iden~iczlcertifications from proposed subcontractors pnor to the award of subcontracts exceeding Si0,OOO which are not exempt from the provisions of the Equzl Oppcxtunity clause; that I will retzin such certifications in my files; and th2t I will forward t h e following notice to such proposed subcontractors (except where the proposed subcontracton h2ve submitted identiczl certifications f o r specific time periods): (See Reverse). '

0

'

Po:ition

6

F m H A 4 0 M (Rev. 12-16-75)

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIR~NENTS FOR CERTIFICATIONS O F NONSEGREGATED FACILITIES

.

.

A certification of Nonsege_erted Facilities, as required by the May 9, 1967, (32F.R. 7339, May 19, 1967) on Elimination of Segregated Fzcilities, by the S e c r e t q of Labor, must be submitted prior to the award of a subdontract exceeding Sl0,03Owhich is not exempt from the pio\isions o f the Equzl Opportunity clause. The certification ~ z Iy be 'submitted eithei for ezch subcontrtct o r for 211 subcontrzcts during a pcriod (i.e., i quzrierly, semimnutlly, or ~ i n u d l y ) .

1

i

H O E : T h e pen2lty for n&hg fzlse stzttments in offers is prescribed in 18 U.S.C. 1001.

. -. .. . -.

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.

.

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...

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.

FmHA I n s t r u c t i o n 1940-4 Exhl bf t A-1 CFiiTIFICATION FOR CONTRACTS, GRAhTS AND LOANS d5 The u n d e r s i g n e d c e r t i f i e s ; t o t h e b e s t of h i s o r h e r k n o v l e d g e and b e l i e f , that:

1. No F e d e r a l a p p r o p r l a t e d f u n d s h a v e been p a l d o r u i l l be p a i d , by o r on b e h a l f of t h e u n d e r s i g n e d , t o any p e r s o n for ¶ n f l u e n c i n g o r a t t e m p t 5 n g t o i n f l u e n c e a n o f f i c e r o r e m p l o y e e o f any a g e n c y , a H e n b e r o f C o n g r e s s , a n o f f i c e r or employee of C o n g r e s s , o r an e m p l o y e e of a Hember o f ' C o n g r e s s i n c o n n e c t i o n w i t h t h e a w a r d i n g o f a n y F e d e r a l c o n t r a c t , t h e m a k i n g of a n y Federal g r a n t o r Federal loan , 2nd the e x t e n s i o n , c o n t i n u a t i o n , renewal, amendment , o r m o d i f j r a t i o n of a n y . F e d e r a l c o n t r a c t , g r a n t o r l o a n .

:.

2. I f any f u n d s o t h e r t h a n F e d e r a l a p p r o p r i a t e d f u n d s h i v e been p a l d o r v l l l be p a i d t o any p e r s o n f o r i n f l u e n c i n g o r a t t e m p t i n g t o i n f l u e n c e ' a n o f f i c e r o r employee o f any a g e n c y , a Hember of C o n g r e s s , a n o f f i c e r o r employee o f C o n g r e s s , o r a n e m p l o y e e of a Menber o f C o n g r e s s i n c o n n e c t i o n u l t h t h i s F e d e r a l c o n t r a c t , g r a n t o r l o a n , t h e u n d e r s i g n e d s h a l l c o n p l e t e and s u b m i t S t a n d a r d Form - LLL, " D i s c l o s u r e o f L c b b y i n g A c t i v i t i e s , " i n a c c o r d a n c e u i t h its instructions. 3. T h e u n d e r s i g n e d s h a l l require t h a t t h e l a n g u a g e o f t h i s c e r t i f i c a t i o n b e i n c l u d e d i n t h e award d o c u m e n t s f o r a l l s u b a w a r d s a t a l l t i e r s ( i n c l u d i n g c o n t r a c t s , s u b c o n t r a c t s , and s u b g r a n t s u n d e r g r a n t s end l o a n s ) 2 n d t h a t a l l s u b r e c i p l e n t s s h a l l c e r t i f y and d i s c l o s e a c c o r d i n g l y . .

This c e r t i f i c a t i o n i s a m a t e r i a l r e p r e s e n t a t i o n o f f a c t upon which r e l i a n c e was p l a c e d when t h i s t r a n s a c t i o n was n a d e o r e n t e r e d i n t o . S u b m i s s i o n of t h i s c e r t i f i c a t i o n i s a p r e r e q u i s i t e f o r m a k i n g o r e n t e r i n g i n t o Any p e r s o n who t h i s t r a n s a c t i o n i n p o s e d by s e c t i o n 1 3 5 2 , t i t l e 3 1 , U.S. Code. f a i l s t o f i l e t h e r e q u i r e d c e r t i f i c a t i o n s h a l l be s u b j e c t t o a c i v i l p e n a l t y o f nst' less t h a n $10,000 and n o t more t h a n $ 1 0 0 , 0 0 0 f o r e a c h s u c h f a i l u r e .

(name)

(date)

000

(OS-21-91)

PN 1 7 1 .

THE AMERICAN INSTITUTE OF ARCHITECTS

AIA Documenf A370

Bid Bond KNOW ALL MEN BY THESE PRESENTS,

thatwe

tllere inscrl lull name and addrets or legal title 01 Contractor)

SHEPHERD C O N S T R U C T I O N , I N C , 3399 DUTCH R I D G E R D , AUGUSTA,

as Principal, hereinafter called the Principal, and

~y

41002

(Here insert lull name and address

I W E R C A R G O I N S U M ' C E C O ~ A N Y , 1450 E AMERICAN L N , S C ~ W T J R G , a corporation duly organized under the laws of the State of I L L I N O I S

or legal title 01 Surely)

IL 60173

as Surety, hereinafter called the Surety, are held and firmly bound u n t o (Here insert (ull name and address of legal lille of Owner1

J E S S A M I N I E SOUTH ELKHORN hrATER D I S T R I C T 101 N M A I N ST, N I C H O L A S V I L L E , KY

as Obligee, hereinafter called the Obligee, in the sum of FIVE PERCENT Dollars ($ 5% O F B I D 1, for the payment of which sum well and truly to be made, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. W H E R E A S , t h e Principal has submitted a bid for (Hcrc insert lull name, address and description of projecll R U W 6" WATER L I N E y WATER D I S T R I B U T I O N S Y S T E H , N I C H O L A S V I L L E , KY CONTRACT S E J 1 N O W , THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract with the Obligee in accordance with the terms of such bid, and give such bond or bonds as may b e specified in the bidding or Contract Documents with good and sufficient surety for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof, or in the event of the failure of the Principal to enter such Contract and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the Work covered by said bid, then this obligation shall b e null and void, otherwise to remain in full force and effect.

Signed and sealed this

12TH

day of

19 99

MAY

SHEPHERD C O N S T R U C T I O N , I N C L

(Witness)

INTERCARGO INSURANCE COMPANY (Surety)

IWilne s)

A I A DOCUMENT A310

BID BOND A I A 8 FEBRUARY 1970 ED THE AMERICAN N.Y. AVE., N.W., WASHINGTON, D.C. 20006

INSTITUTE OF ARCHITECTS, 1735

.

(Seal)

1

LIMITED POIVER OF AITORh'EY

INTERCARGO INSURANCE COMPANY KNOW ALL h$EN BY THESE PRESENTS: That the INTERCARGO Ix'SURWCE COMPANY, a corporation organized and existing by virtu Illinois, does hereby nominate, constitute and appoint, Edward Roeding, Kenneth R. Roeding, Stephen

T.

ThomasJ. Gdoway, And AnnaJ. Hedges As Employees OfRoeding Insurance, its true and make, execute, attest, sed and deliver for and on its behalf, as surety, v d as its act and deed, where required, any and all bonds, undertaking. obligations in the nature thereof, the penal sum of no one of which is in any event to exceed S5,000,000.00 as required by surety Bon Such bonds and undertakings, when duly executed by the aforesaid Anorneys-in-factshall be binding upon the said Company as fully and to and undertakings were signed by the President and Secretary of the Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and by the authority ofthe following Resolution adopted by the Board of Dued 5th day of December, 1988: "RESOLVED, That the Resident, or any Vice President of the Company or any person designated by any one of them is hereby authorized to m o m e y qualfiing the attorney named in the given Power of Attorney to execute in behalf of the Company, bonds, underiaking and all Contracts of surqkhip, k d that any Secretary or any Assistant Secretary of the Company be, and that each or any of them hereby is authorized to attest the execution of any such Power of ... Attorney, and to attach thereto the Seal of the Company.

.

:

'

'

R X T H E R RESOLVED, That the signature of such oficers and the Seal of the Company may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter talid and binding upon the . .. . - . , . . . . . . . . Company with respect to any bond, undertaking or contract of suretyship to which it is attached." . .. , .

.

_'

Bonds executed under this Power of Attorney may be executed under facsimile signature and seal pursuant to the following Resolution adopted bythe Board of DireSton'of the Company on August 7,1997. "RESOLVED. That the signature of Stanley A. Galanski. as President of ~s Corporation, and the seal of this Corporation may be a i s e d or printed on any and all bonds, undertakings, recognizances, or other written obligations thereof, on any revocation of any Power of Attorney, or on any certificate relating thereto. by facsimile, and any Power of Attorney, any revocation of any Power of Attorney, bonds. undertakings, recognizances, certificate or other twitten obligation, bearing such facsimile signature or facsimile seal shall be valid and binding upon the Corporation."

IN WITNESS WHEREOF, the INTERCARGO IhWRMVCE COXlPAh'Y has caused its corporate seal to be hereunto affixed, and these presents lo be signed by its duly authorized officers this 8th day of August, 1997. INTERCARGO INSURAR'CE COMPANY

BY PRESIDEhT

ATTEST: SECRETARY

STATE OF ILLINOIS COUNTY OF COOK

ss.

On this 8th day of August, 1997, before me personally came Stanley .4Galanski to me bo\+? who, being duly s\vom, did depose and say: that he is President of the Corporation described in and which executed the above instrument: that he h o w * sthe seal ofsaid Corporation: that the seal afised to the aforesaid insbumen1 is such corporate seal and was affixed thereto by order and authority of the Board of Directors of said Compan!; and that he executed the said instnrment by like order and authority:

OFFICIAL SEAL SAMANTHA B HALTER NOTARY PUBLIC, STATE OF NUWOW

NOTARY PUBLIC

STATE OF ILLh'OIS

COUNTY OF COOK

ss.

I, hlichael L Rybak, Secretary of the INTERCARGO INSURANCE COh4PAh"Y a corporation of the State of Illinois, do hereby cerllfy that the above and foregoing a full. true and correct copy of Power of Attorney issued by said Company, and that 1 have compared same with the original and that it is a correct transcript thereffom and Of the whole ofthe original and that the said Power of Attorney is still in full force and effect and has not been revoked.

Ix'WITNESS "HEREOF. I have hereunto set my hand and atfixed the seal of said Company. at the City of Schaumburg this 12TH day of 19

99

.

SECRFTARY

MAY

"

AIA Document A370

Bid Bond KNOW ALL MEN BY THESE PRESENTS,

thatwe ( I k r c mert lull name and rddrco nr legal

SEPHERD CONSTRUCTION, INC, 3399 DUTCH RIDGE RD, AUGUSTA, as Principal, hereinafter called the Principal, and

~y

title 01 Contractor)

41002

(Here insert full name and address or legal title

Of

Surety)

INTERCARGO INSU&”CE C O W A M , 1450 E AMERICAN LN, S C H A W U R G , IL 60173 a corporation duly organized under the laws of the State of ILLINOIS as Surety, hereinafter called the Surety, are held and firmly bound unto (Here insert full name and address or legal W e of Owner) JESSAMINIE SOUTH ELKHORN WATER DISTRICT 101 N MAIN ST, NICHOLASVILLE, KY as Obligee, hereinafter called the Obligee, in the sum of FIVE PERCENT Dollars ($ 5% OF BID 11 for the payment of which sum well and truly to be made, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS, the Principal has submitted a bid for

(Here insert lull name, address and description of project)

RURAL 6” WATER LINE, WATER DISTRIBUTION SYSTEM, NICHOLASVILLE, KY CONTRACT SEJ 1 NOW, THEREFORE, i f the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract with the Obligee in accordance with the terms of such bid, and give such bond or bonds as may be specified in the bidding or Contract Documents with good and sufficient surety for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof, or in the event of the failure o l the Principal to enter such Contract and give such bond or bonds, if the Principal shall pay lo the Obligee the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the Work covered by said bid, then this obligation shall be null and void, otherwise to remain in full force and effect.

Signed and sealed this

12TH

day of

MAY

19 99

INTERCARGO INSURANCE COMPANY (Surety)

AIA DOCUMENT A310 BID BOND * A M @ FEBRUARY 1970 ED THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 N.Y. AVE., N.W., WASHINGTON, D.C. Zoo06

(Seal)

1

LIMITED POWER OF ATTORNEY

INTERCARGO INSURANCE COMPANY

I

KNOW ALL MEN BY THESE PRkSENTS: That the INTERCARGO INSURANCE COMPANY. a corporation organized and existing by virtue ofthe laws of the State of

E

make. execute. attest. seal and deliver for and on its behalf. as surety. and as its act and deed. where required. any and all bonds. undertakings. recognizances and \witten obligations in the nature thereof. the penal sum of no one of which is in any event to exceed S5,000,000.00 as required by surety Bond Obfigees

a

Edward T.Roeding, Kenneth R. Roeding, Stephen T.Roeding, ThomasJ. Gadoway, And Anna J. Hedges AS Employees Of Roeciing Insurance, its true and lawful Attorneys-in-fact to

Illinois. does hereby nominate. constitute and appoint,

.

Such honds and undertakings. when duly executed by the aforesaid Attorneys-in-fact shall be binding upon the said Company as h l l y and to the same extent as if such bond$ and undertakings were signed hy the President and Secretary ofthe Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and hy the authority of the following Resolution adopted hy the Board of Directors of the Company on the 5th day of December. 1988: "RESOLVED. That the President. or any Vice President of the Company or any person designated by any one of them is hereby authorized to execute Powers of Attorney qualifi'ing the attorney named in the given Power of Attorney to execute in behalf ofthe Company. bond?. undertakings and all contracts of suretyship. and that any Secretaty or any h i s t a n t Secretary ofthe Company be. and that each or any ofthem hereby is authorized to attest the execution of any such Power of Attorney. and to attach thereto the Seal ofthe Company.

I

FLIRTHER RESOLVED. That the signature of such officers and the Seal ofthe Company may be affixed to any such Power of Attorney or to any certificate relating thereto hy facsimile. and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any hond, undertaking or contract of suretyship to which it is attached." Bonds executed under this Power of Attorney may be executed under facsimile signature and seal pursuant to the following Resolution adopted by the Board of Directors of the Company on August 7. 1997. "RESOLVED. That the sigiature of Stanley A. Galanski. as President ofthis Corporation, and the seal of this Corporation may be affixed or printed on any and all honds. undertakings. recognizances. or other written obligations thereof. on any revocation of any Power of Attorney, or on any certificate relating thereto. hy facsimile. and any Power of Attoniey. any revocation of any Power of Attorney. honds. undertakings, recognizances, certificate or other written obligation. bearing such facsimile signature or facsimile seal shall be valid and binding upon the Corporation." IN WITNESS WHEREOF. the INTERCARGO INSURANCE COMPANY has caused its corporate seal to be hereunto affixed, and these presents to be signed by its duly authorized officers this 8th day of August. 1997.

INTERCARGO INSURANCE COMPANY

BY:

J G p - M PRESIDENT

I

ATTEST:

SECRETARY

STATE OF ILLINOIS COLNTY OF COOK

ss.

On this 8th day of August, 1997, before me personally came Stanley A. Galanski to me known who, being duly sworn did depose and say: that he is President ofthe Corporation described in and which executed the above instrument: that he knows the seal of said Corporation: that the seal affixed to the aforesaid instrument is such corporate seal and was aRixed thereto by order and authority of the Board of Directors of said Company; and that he executed the said instrument by like order and authority:

SAMANTHA B HALTER NOTARY PUBLIC, STATE OF ILUNO# M y COMMISSION EXRRE8:08108/00

NOTARY PUBLIC

STATE OF ILLINOIS COUNTY OF COOK

ss.

I, hlichael L. Ryhak. Secretary of the INTERCARGO INSURANCE COMPANY a corporation of the S h t e of Illinois, do hereby certify that the above and foregoing is a full. true and correct ropy of Power of Attorney issued by said Company. and that 1 have compared same with the original and that it is a correct transcript therefiom and of the whole of the original and that the said Power of Attorney is still in full force and effect and has not been revoked. IN WITNESS WHEREOF. I have hereunto set my hand and affixed the seal of said Company. at the City of Schaumburg, this 12TH day of 19

99

.

SECRETARY

MAY

RUS & l e t i n 1 7 8 0 - 1 3 -'* Attachment 3 '

3ID

c ~ ~d i-~~
?Sl

t h a t *de, t h e

ande r s i5 n e d , ;is F r k c i p a l , a n d

as S u r e t y , . a r e h e r e b y h e l d a s Oh?*y?. i'n t k e Fens1 S'2n of fcr t h e pa;mezz o f which, .. . w e l l and t r c l y to S e n a d e , *n.e hereby j o i n t l y a i l d s e v e r a l l y C i C C c u r s e l v e s , s E c c e s s c z s a x i assiczs. Signed., this day c f I 13 . f h e Ccr:ditLcn cf t h e above cbligaticn is s c c h t h a t w.-, . e r e a s c h e p r i n c i z a l has s c b z i z t e c to a certaia 513, a c t a c h e d h e r e t o a n d h e r e b y azde a p a r z h e r e o f to e r . t e r i n t o a Cc2traCt in W z i t i Z s , f G Z

and. f i m l y bOL,d xz:o

'

(a)

I f said 313 s k a l l S e r e j e c i e d , o r

(5) I f s a i d 313 shall Se acce-,ced azd t h e ? r i z c i p a l shall e x e c z t e a z d d e l i - l * e r a c c n c r a c c in ::?e Forx of C o n t r a c t a t t a c h n e n t h e r e t o ( 2 z c 2 e z l y CcZ?leiEd 5.2 a c c o r d a n c e w i t h . s a i d S i D ) and s::all Eur~ish a 3 G L 3 fcr f a i t k f c l a r r f c r z a c e of said. c o z t r a c t , a n d for t h e ,c;yrieni cf a l l ; E ~ S C P S ? e r f c n i n z l a ~ c rf c r a i s h i z s z z i e r i a i s i n . . azc cczzecticn ::?~zew~i.~ , shall i n all o t h e r r e s p e c t s zerforx t k e a g r e e n e z i c r e a t e d S y i:-.e acce.;iazce c5 s a i d 3z3, ::?en this cSli5atic.n s h a l l k e ~ c i d ,c:herwise t5e sane shall r e ~ a i ni n f o r c e . . . azd e f f e c t ; 1r ZelZg e : ? z e s s l y u n d e r s c c o d 2nd a g r e e d t i ~ a ci h e L i a b i l i t y of t h e S u r e r y for azy and all c l a i m s hereuzdc,r s h a l l , in 20 e-:eEc1 exceed e k e 2 e n a l zrno~?; of this o 3 l i c a t i c a a s : ? e r e i n seated. I-

1 I I I I I I 1 I I I 1 I I I 1 I I I

USDA-FmHA Form F m H A 400-6 {Rw. 12-16-75)

COhlPLIANCE STATEMENT

This s t z t e m e n t relztes t o a proposed contract with

kj E SrA-mlPE. ‘I.

s

tlJ &CK&QAJ .(l\’ame of borrower or grantee)

&A TEQ D/S/’;r2iG.T I

who expects t o finznce t h e c o n i n c t wirj, issistznce from the Farmers H o m e Adzinistration, L’nited Stztes Department of Agriculture (whether by a lozn, grant, loan insurance, guzizntee, o r other f o r n o f finzncjzl assistince). 12371 the undersigned b i d d e r or prospective contractor. I represent t h i t - - - - -

i.

0

.I hale, hzve not,, pzriicipited in a previous contrzct o r subcontract subject fo executive order .1.12$6 (regzrding equal employment o p p o r t u n i t y ) or 2 preceding sirni1z.r Executive order. 2. If I hzve pzrticipzted in such a contract or subcontract,.I have, hzve not, filed 211 compliznce reports t h a t I hzve been required t o file in connection with t h e contrzct o r subcontrzct. .: If the proposed contrzct is for 550,000 or more and I have 5 0 - o r m o r e employees; I ilso represent thzt - - 3. I hive, haye n o t previously had conirzcis subject t o t h e written affirm2tive zction progrzn. requirements of the Secretzry of Lzbor. ,

0 ’

I hzve pzrticipzted in such z contrzct or subcontrzct, I @ have, ‘hzye not, developed and plzced on file i i ezch establishment affirmative z c t i o n progrims 2s required by the rilles 2nd r e g u l z t i o x of the S e c r e i v y of Labor. I understznd t h i t if I hzve fiiled t o file i n y compliznce reports that hzve been requiied o f a e , I zm n o t eljgiible 2nd wiil not be e l i ~ b l cto hzve my bid considered o r to enter inio t h e an zrrzngement regarding s u c h reports that is proposed contract unless 2nd u n t i l I :&e sitisfictory to the Fzrmers H o n e Aaninisirztion or to the office w h e r e t h e reports zre iequired io be filed. 4. If

I zlso certify thzt I do not mzinizin or picvide for my employees zny segregated ficilities i t any of m y estzblishments, and t h i t I do n o t p e r n i t m y employees to p e r f o m their services z t zny locztion, under m y coniiol, where segregzted facilities are mzjntzined. I certify further thzt I will not maintain or provide for m y employees zny segregzted izcilities at m y o i m y estzblishments, and t h z t I will n o t permit m y employees t o pc.rfonn their services i t zny location, under m y control, lvhere segregzted facilities 2re mzintziied. I zgree thzt a breach of this certificztion is z violation of the Equzl O p p o r t u n i t y clzuse in my contract. As used in this certificztion, the term “segregzted facilities” m e a m zny wziting rooms, work zrezs, rest rooms 2nd wash rooms, restzurznts 2nd o t h e r eating x e a s , time clocks, locker rooms 2nd o t h e r storage or dressing zrezs, pzrking lots, drinking fountains, recreation or entertzinnent zreas, trznsportation, 2nd housing facilities provided for employees which are segregzted by explicit directive or 2re in fzct segregated o n the basis of m e , creed, color, or nztionzl origin, beczuse of hzbit, local c u s t o m , or otherwise. I further agree that (except where I hzve obtained identiczl certifications for proposed subcontrzctors for specific time periods) I will obtzin identiczl certifications from proposed subcontrzctors prior to the zward of subcontrzcts exceeding S 10,000 which are not exempt from rhe provisions of the Equzl Opportunity clzuse; that I will retain s u c h certifications in n y files; and that I will forwzrd t h e following notice to such proposed subcontrzctors (except where t h e proposed subcontrzcton hzve submitted identiczl certifications f o r specific t i n e periods): (See Reverse). ’

Porition 6

F m H A 400-6 (Rev. 12-16-75)

.

...

- ..

. .. . - . . .

.

'I NOTICE TO PROSPECTIVE SUBCONTRACTORS O F REQUIREhlENTS FOR

CERTIFICATIONS OF NON-SEGREGATED FACILITIES

A certification of Nonsegegated Facilities, as required by the hlay 9, 1967, order (32F.R. 7439, May 19, 1967) on Elimination o f Segregated FzciJities, by the Secretzry of Labor, must be submitted prior to the award of a subcontract exceeding 510,000'which is not exempt from the provisions of the Equal Opportunity clzuse. The certification may be submitted either for each subcontract o r for ill subcontracts during a period (i.e., quarterly, semiannually, o r znnuzlly).

NOTE: The penalty for rnzking fzlse statements in offers is prescrjbed in 18 U.S.C.1001.

. ..

..

'

.

.

- .

. .

..

. ...

I 1 I I 1 I 1 I I I 1 I I I I I I I

.

..

FmHA I n s t r u c t i o n 1940-4 E x h i b l t A-1

CE3'ITFICATIGN TO3 CONTRACTS, GRAh'TS A N D LOAHS The u n d e r s l g n e d c e r t i f i e s ; t o t h e b e s t o f h l s o r h e r k n o w l e d g e and b e l i e f , that:

1.

So T e d e r a l e p p r o p z l a t e d f u n d s h a v e been p a l d o r u ' l l l be p a l d , by o r

on b e h a l f o f t h e u n d e r s i g n e d , t o ar;y p e r s o n f o r I n f l u e n c i n g o r a t t e n p t l o g t o i n f l u e n c e an o f f i c e r o r e n p l o y e e of any a g e n c y , a Henber o f C o n g r e s s , a n

o f f i c e r o r e m p l o y e e o f C o n g r e s s , o r an e m p l o y e e o f a Hember o f ' C o n g r e s s i n c o n n e c t i o n w i t h t h e z v a r d i n g of any F e d e r a l c o n t r a c t , t h e n a k l n g of any F e d e r a l g r a n t o r F e d e r a l l o a n , and t h e e x t e n s i o n , c o n t i n u a t i o n , r e n e w a l , a n e n d ~ e n t , o r modii:cat!on cf a n y , F e d e r a l c o n t r a c t , g r a n t c r l o a n . :. Tf any f u n d s o t h e r t h a n P e d e r a l a p p r o p r l a t e d f u n d s h a v e been p a i d o r 2. u l l l be p a l d t o s n y p e r s o n f o r i n f l u e n c i n g o r a t t e m p t i n g t o i n f l u e n c e ' a n o f f i c e r o r e m p l o y e e o f any z g e a c y , a H e n b e r o f C o n g r e s s , a n o f f i c e r o r e n p l o y e e of C o n g r e s s , o r a n e m p l o y e e of a H e n b e r o f C o n g r e s s i n c o n n e c t i o n w i t h t h i s F e d e r a l c o n t r a c t , g r a n t ~r l o a n , t h e u n d e r s i g n e d s h a l l c o m p l e t e e n d s u b n i t S t t i n d a r d ? o r a - LLL, " D i s c l o s u r e of L o b b y i n g A c t i v i t i e s , " i n a c c o r d a n c e with its instructions. The u n d e r s i g n e d s h z l l r e q 3 i r e t h a t t h e l a n g u a g e of t h i s c e r t i f i c a t i o n 3. be i n c l u d e d i n t h e a w a r d d c c u z e n t s f o r a l l s u b a w a r d s a t a l l t l e r s ( i n c l u d i n g c c a t r e c t s , s u b c o n t r a c t s , and s u b g r a n t s u n d e r g r a n t s End l o a n s ) a n d t h a t ell s u b r e c i p i e n t s s h a l l c e r c i f y and d i s c l o s e a c c o r d i r ~ g l y .

This c e r t i f i c a t i o n i s a m a t e r i a l r e p r e s e n t a t i o n of f a c t upon w h i c h r e l i a n c e v a s p l a c e d when t h i s t r a n s a c t i c n was c a d e o r e n t e r e d i n t o . S a b n l s s i c n of t h i s c e r c i f i c a t i o n i s a p r e r e q u i s i t e f o r m a k i n g o r e n t e r i n g i n t o t h i s t r a n s a c t i o n i n p o s e d by s e c t i o n 1 3 5 2 , t i t l e 3 1 , U.S. Code. Any p e r s o n who f a i l s t o f i l e t h e r e q u l r e d c e r t i f i c a t i o n s h a l l be s u b j e c t t o a c i v i l p e n a l t y of not' l e s s t h a n $10,000 and n c t n o r e t h a n $100,000 f o r e a c h s u c h f a i l u r e .

000

(08-21-91)

PN 1 7 1

*

........ _ _---. - -. cbw-ay 1970 Ed.)

in relation to this BOND D E S WAUSAU INSURANCE COMPANIES PO BOX 8017 WAUSAU WI 54402-8017 1-800-135-4401

I

Wausau Insurance Companies Bond No. 99-2

Bid Bond

I

%OW ALL MEN BY THESE PRESENTS, that we, F i s h e r Tank Company . 2330 Two Notch Road, Lexington, South Carolina 29072 Principal, hereinafter called the Principal, and EMPLOYERS INSURANCE OF WAUSAU A iMurual Company, a rporation duly organized under the laws of the State of Wisconsin as Surety, hereinafter called the Surety are held and firmly bound unto J E 5 5 A M r n l F f 0 V A ) T Y S O n W & L E W u k A / W A 7 E g D / S n 2 IC?Obligee, hereinafter called the Obligee, in the sum of

5 0/ D

O F Blfl

AAOUN7

Dollars (S 5 */D tr the payment of which sum well and truly to be made, the said Principal and the said Surety, bind ourselves. our heirs, zecutors, administrators, successors and assigns, jointly and severally, firmly by these presents.

1,

ow, THEREFORE,if the Obligee shall accept the bid of the Principal and the Principal shall enter into a contract with the bligee in accordance with the terms of such bid. and give such bond or bonds as may be specified in the bidding or contract documents with good and sufficient surety for the faithful performance of such contract and for the prompt payment of labor and aterial furnished in the prosecution thereof, or in the event of the failure of the Principal to enter such contract and give such nd or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof becween the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another parry to perfom the 'ork covered by said bid, then this obligation shall be null and void, othenvise to remain in full force and effect.

b,

I

I I

Signed and sealed this

1 Z 7c/

day of

MA)'

SC0023 11-93

AD. 19 99

M

R

S INSURANCE

w

, A Mutual Company

POWER OF ATTORNEY (FOR BID BONDS ONLY) KNOW ALL MEN BY T H E S E PRESENTS: T h a t the EMPLOYERS INSURANCE OF WAUSAU A Mutual Company. a corporation duly organized and existing under the laws of the State of Wisconsin. a n d having its principal office in the City of Wausau. County of Marathon. State of Wisconsin. h a s made, constituted and appointed, and does bv these presents make. constitute and appoint

DARELLA WHITE, DAMON BENbESRP. ERIC LEHRER

its true and lawful attorney.in.fact, with full power and authority herehy conferred in its name, place and stead, to execute. seal. acknowledge a n d deliver ANY AND ALL BID BONDS OR WRITTEN DOCUMENTS INVOLVING BID GUARAN.

TEESORINTHENATURETHEREAmER

............................................

and to bind the corporation thereby a s fully and to the same extent as if such bonds were signed by the President, sealed with the corporate seal of the corporation a n d duly attested by its secretary hereby ratifying a n d confirming all that the said attorney-in-fact may do in the premises. This power of attorney is granted pursuant to the following resolution adopted by the Board of Directors of said Company at a meeting duly called a n d held on the 18th day of May, 1973. which resolution is still in effect: "RESOLVED, t h a t the President and a n y Vice President - elective or appointive of EMPLOYERS INSURANCE O F WAUSAU A Mutual Company be, and t h a t each ofthem hereby is. authorized to execute powers ofattorney qualifying the attorney named i n the given power of attorney to execute on behalf of EMPLOYERS INSURANCE OF WAUSAU A Mutual Company bonds, undertakings and all contracts of suretyship: a n d that a n y secretary or assistant secretary be, and that each or a n y of them hereby is, authorized to attest the execution of a n y such power of attorney, and to attach thereto the seal of EMPLOYERS INSURANCE O F WAUSAU A Mutual Company." "FURTHER RESOLVED, t h a t the signatures ofsuch officers a n d the seal of EMPLOYERS INSURANCE O F WAUSAU A Mutual Company may be affixed to a n y such power of attorney or to a n y certificate relating thereto by facsimile. and a n y such power of attorney or certificate bearing such facsimile signatures a n d facsimile seal shall be valid and binding upon the EMPLOYERS INSURANCE O F WAUSAU A Mutual Company when soaffixed and in the future with respect to a n y bond. undertaking or contract of suretyship to which it is attached." IN WITNESS WHEREOF. EMPLOYERS INSURANCE OF WAUSAU A Mutual Company h a s caused these presents to be IST signed by the vice president and attested by iu assismt secretary. and its corporate seal to be hereto affixed this day of N O E M B E R ,1994.

-

EMPLOYERS INSURANCE OF WAUSAU A Mutual Company

- /%&-

J. Stephen Ryan

Attest:

'

I-

R. J. Be6cman STATE OF WISCONSIN

a

COUNTY O F MARATHON

i-

U

0

12

-

0

Assistant Secretary ) ) 86. )

On this 1ST day of NOVEMBER , 1 9 x ,before me persona~~y came J. Stephen Ryan ,to me known, who being by me duly swom, did depose and say that he is a vice Dresident of the EMPLOYERS INSURANCE OF WAUSAU A Mutualcommnv. the corpomion described in and whxh execukd the above instrument:that he knows the seal of said corporation; that the seal affixed to said insthmknt is such corporate seal and that it was SO affixed by order of the Board. of~l?i~c_t?~nTof~+d corporation and lhat he signed his name thereto by like order. I N WlTNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year herein first above written.

-J

L

Q

>

Iz i

6 t0

'12 '12

I

I-

I

,KA,--,

(-3

Notary Public + *.,!:. .\

~ Y I I I Ci?

....--..? '#e, .d STATE O F WISCONSIN ) CITY O F WAUSAU ) ss. COUNTY OF MARATHON ) I. the undersigned, assistant secretary of EMPLOYERS INSURANCE OF WAUSAU A Mutual Company, a Wisconsin corporation, do hereby certify that the foregoing a n d attached power of attorney, W H I C H M U S T C O N T A I N A V A L I D A T I N G S T A T E M E N T P R I N T E D I N THE M A R G I N T H E R E O F IN RED I N K , remains in full force a n d h a s not been revoked; and furthermore t h a t the resolution of the Board of Directors set forth i n the power of attorney is still in force. /ZWI Signed and sealed i n t h e City of Wausau. Marathon County, State of Wisconsin. this day

MAY

@ { cp.or.r,..

R

a

Patricia A. Kleman NOTARY PUBLIC STATE OF WISCONSIN M Y COMMISSION EXPIRES MAY 24, 1998 CERTIFICATE

of

6

Vice President

,192l.

R. J. Besteman

---

Assistant Secretary

NOTE: IF YOU HAVE ANY QUESTIONS REGARDING T H E VALIDITY OR WORDING OF T H I S POWER O F ATTORNEY. CALL TOLL FREE (800)826.1661. (IN WISCONSIN, CALL (800)472-0041) 8 1 5 4 2 2 - 1 06-94

RUS sulletin 1780-13 Attachment 3

31D

~ r c p o s a lof

Kentucky Glass L i n w t P m s

(hereinafter called the state of Kmtuckv *

t

~

:

~

~

~

Tnr-

orcanlied a n d exiscing uzder :he doing busi.. mess * . To

~

*

~

)

,

a cowration tne J e s s m i n e County S o u t h Elkhorn Water District

as

laws of

3

Nicholasville

I

n

7

-

(hereinafter called '"Tn3TR")

.

hereby screes z o corner.ce V ' !C?.:( under t h i s ccntract cii o r before a date to be specifier',in the NOTICE TO FROCEZD a n d to fully ccmplete the ?i?OJECT *..lithi2 270 consecutive calendar 31DDZx f z r z k e r agrees t o pay a s lipidate6 danages, the sui3 0 1- $ 5 0 0 . 0 0 f o r each ccnsecc:ive calendar day thereafter as 3rovided i n Sec::cii 1 5 of e : c General C c z c ~ : F c ~ s . d a y s thereafter.

EUS Zulletin 1780-13 Attachmezt 3 saae 2

Addendum #1

* I z s e r t “ a corporationii, “ a cartzershipii,C Y “an ixdividual” a s .. ap?lictble.

t I 1 5

1

t

sales

ttxes and

BID SHEET (Revised) Contract S H - 2 May 1999 __r

(tern

Unit

NO.

mE?!a

?sEziE

117,000 Gallon Standpipes w/ associated Foundation, Piping and Vaults (GlassUned Tank, Both Sites)

I € I17,000Gallon Standpipes w/associrnd Foundation, Piping and Vaults (Welded Steel Tanks, Both Sites

2

Ls

2

1s

149,812.00

-I

299,624.00

__+_-

2 Site Work associated w/

Standpipe Construction

2

LS

23,490.00

46,980.00

2

ea

29,875.00

59,750.00

I

LS

99,000.00

99,000.00

5 Bituminous Pavement of Access Road - Pollard Site

1

LS

4,300.00

4,300,OO

6 Bituminous Pavement of Access Road - SuQarCreek Site

I -

LS

10,500.00

10,500.00

Excluding Pavement of Access

3 Control Valve Vaults 4

Telemetry

CONTRACT TOTAL: $ 5 2 0 , ~5 4 - 0 0

-

p _ c I _ _

-

-

-

Note: Any tasks or materids not included in the above schecfik, required lo complete the Project h accordance we& the htmt of the Job@ X I S and specircabms are lo be considered Inherent to the scope of work and shan be included in the mtractw's bM as 'midentalto the project.

BID TOT&

F i v e I 3 u n d r e d Twenty Thousand, One Hundred F i f t y Four and no/lOO ____________________--_---_--------_-___dollars (5h z i n m fuel

Company (name & address): Kentucky Glass Lined P.O.

Systems,

TnC.

Phone:

606

u

, Pre5mnf-

PeY

date: - 5/12/99

Box 13370

Lexington, KY

6igned:

40583

) 3 5 3-: 7 5 4 4

-

License number (if applicable) SEAL - (if 6ID is by a corporation)

USDA-FmHA Form FmHA 40C-6 (Rw. 12-1'6-75)

COS1P L I XNCE STATEM E NT

This statement relztes to a proposed contract with ..

Jessamine County South Elkhorn

Water District 1

( N a m e OIboriDwer or grantee) who expects to finznce t h e contract with zssistance fron; the Farmers H o m e Administration, L'nited States Depzrtment o f .4gricc'rture (whether by 2 lozn, grant, loan insurance, guarantee, or other form of financiil zscistince). 1 2 m the undersigned bidder or prospective contractor. I represent that - - - - .:-

i.

n

.I hive, h.ive not, pzriitipzted in a previous contrzct o r subcontract subject to executive order .1.1246 (regzrding equzl employment o p p o r t u n i t y ) or a preceding

sirnilzr Executive order. 2 . I f I have pzrticipzted in such 2 conirzct o r subcontrzct, I [srl hzve, have not, filed a!l compliance reports that 1 hzve been required to file in connection with the coni rzct or subcontrzct. I f the proposed contract is for 550,000 or more 2nd I have 50 o r m o r e employees, 1 also represent thzt - - 3. I have, haye n o t c:eviously had conirecis subject to t h e written iffirmative zcticn program. requirements of the Secreizry of Lzbor. 4. If I hzve pzrticipated in such a contrzct or subcontrzct, I have, 'hzvenot, developed arid placed on file z t ezch establishment zffirmztive a c t i o n piogrzms 2s required by ihe rules 2nd regulztions of t h e S e c r e t z u of Labor. I understand ttizt if I hzve failed to file m y compliznce reports that have been required of me, I a n n o t eli$ble End will not be e l i s b l c to have m y bid considered or to enter into the proposed contrzct unless 2nd u n t i l 1 r z k e zn arrzngement regzrding such reports that is saiisfzctory to the Farmers Home Administrztion or to the office w h e r e t h e reports are required to be filed.

0

0

0 '

0

I also certify that I d o not mzintzin cr provide for my employees 2ny segregated facilities at zny of my establishments, 2nd t h i t 1 do n o t permit m y employees t o p e r f o m their senices a t a n y !ocztion, under m y control, where segregited facilities 2re' maintzined. I certify furt!ier 1i12t I \vi11 not maintain o i provide for my employees z n y segregated facilities at any of m y estab!ishments, and that I tvill n o t permit m y employees to p d o r n i their senices i t 2ny locition, under m y contrcl, where segregated facilities are mzintzi led. I agree thzt 2 breach of this certificztion is 2 violation of the Equil O p p o r t u n i t y clause in my contrzct. A s used in this certificztion, the term "segregated facilities" means any waiting rooms, \{fork zreas, rest rooms 2nd usish rooms, restzurants 2nd o t h e r eating areas, time clocks, locker rooms 2nd o t h e r storzge or dressing areas, pzrking lots, drinking fountains, recreation or e n t e r t z i n n e n t are2s, trznsportation, 2nd housing facilities provided for employees which are segregated by explicit directive or are in fact segregated on the bzsis of race, creed, cclor, or national origin, beczuse of hzbit, local c u s t o m , or otherwise. I further zgree t h a t (except where I have obtained identiczl certificztions for proposed subcontrzctors for specific time periods) I will obtzin identic21 certifications from proposed subcontractors prior to the 2 w r d of subcontracts exceeding 510,000 which are not exempt from rhe provisions of the Equal Opportunity clzuse; t h z t I will retain such certifications in m y files; 2nd t h z t 1 will forward t h e following notice to such proposed subcontractors (except where the proposed subcontractors have submitted identical certifications for specific time periods): (See Reverse).

Position 6

F m H A 400-6 (Rev. 12-1 6-75]

. ... . .

NOTICE T O PROSPECTIVE SUBCONTRACTORS OF REQUIREMENTS F O R CERTIFICATIONS OF NON-SEGREGATED FACILITIES

A certification of Nonsegegated Facilities, as required by t h e ?4ay 9, 1967, order (32F.R. 7439, May 19, 1 9 6 7 ) on Elimination of Segreg2ted Facilities, by the Secretzry of Labor, must be submitied prior to the award of a subcontract exceeding S10,OOO which is not exempt from the provisions of t h e Equal Opportunity clause. The certificztion may be submitted either for each subcontrzct or for 211 subcontrzcts during a period (i.e., quarterly, semiannually, or znnuzlly).

NOTE: T h e penalty for m&ing f a l x statements i n offers is prescribed in 18 U.S.C. 1001.

Kentucky Glass Lined Tank Systen, Inc. Dat,e

..

511 2/99

..

Sigr,.>dre o o i d h r

P.O. Eox 1 3 3 7 0 . .-

Lexington, KY

c;Y

r(Cor,drsve ~ o z e . u : o r I

40583

Address (including

Z$ Code)

..

F m H A I n s t r u c t i o n 1940-4 '

Exhiblt A-l

CEilTTFICATIOlI FOX CONT!?ACTS, GRANTS A N D L O A S S The u n d e r s l g n e d c e r t i f i e s ; t o t h e b e s t o f h i s o r h e r k n o w l e d g e a n d b e l i e f , that:

1.

No T e d e r a l a p p r o p r l a t e d f u n d s have been p a l d or u i l l be p a l d , by o r

cn b e h a l f of t h e u n d e r s i g n e d , t o ai-~y p e r s o n f o r t n f l u e n c i n g o r a t t e n p t l n g t o

i n f l u e n c e a n o f f i c e r or employee of any a g e n c y , a Henber of C o n g r e s s , an o f f l c e r o r e m p l o y e e o f C o n g r e s s , cr a n e m p l o y e e of a Hember o f ' c o n g r e s s i n c o n n e c t i o n w i t h t h e a w a r d i n g of any F e d e r a l c o n t r a c t , t h e m a k i n g o f a n y Federal grant o r Federal l c a n , and the extension , coot i n u a t ion, renewal, a n e n d a e n t , o r n o d l f i r a t i o n of a n y . F e d e r a l c o n t r a c t , g r a n t or l o a n . ...I 2. I f any f u n d s o t h e r t h a n F e d e r a l appropriated f u n d s h a v e b e e n p a l d o r ulll be F a i d t o a n y p e r s o n f o r i n f l u e n c i n g o r a t t e n p t i n g t o i n f l u e n c e an o f f i c e r o r e m p l o y e e of aoy a g e n c y , a Hember of C o n g r e s s , a n o f f i c e r o r e n p l o y e e o f C o n g r e s s , o r an e m p l o y e e o f a Henber of C o n g r e s s i n c o n n e c t i o n v i t h t h i s Federal c o n t r a c t , grant o r l o a n , the underslgned s h a l l complete and s u b n i t I t s n d a r d Form - L L L , " D i s c l o s u r e of L o b b y i n g h c t i v l t i e s , " i n a c c o r d a n c e uich i t s instructions.

The u n d e r s i g n e d s h a l l r e q u i r e t h a t t h e l a n g u a g e o f t h i s c e r t i f i c a t i o n 3. b e I n c l u d e d i n t h e award d o c u n e n t s f o r a l l s u b s v a r d s a t a l l t i e r s ( i n c l u d i n g c o g t r : E c t s , s u b c o n t r a c t s , and s u b g r a n t s u n d e r g r a n t s and l o a n s ) a n d t h a t a l l s u b r e c i p l e n t s s h a l l c e r t i f y and d i s c l o s e a c c o r d i n g l y .

-.i n i s

c e r t i f l c a t i c n i s a m a t e r i a l r e p r e s e n t a t i o n of f a c t upon w h i c h r e l l a n c e u a s p l a c e d when t h l s t r a n s a c t i c n was nade o r e n t e r e d i n t o . S u b m i s s l c n of t h i s c e r t i f i c a t i o n i s a p r e r e q y j s i t e f o r m a k i n g o r e n t e r i n g i n t o t h i s t r z n s a c t i o n i m p o s e d by s e c t i o n 1 3 5 2 , t i t l e 3 1 , U.S. Code. Any p e r s o n . w h o f a l l s t o f i l e t h e r e q u i r e d c e r t i f i c a t i o n s h a l l be s u b j e c t t o a c i v i l p e n a l t y o f n o t ' l e s s t h a n $10,000 and n o t n o r e t h a n $100,000 f o r e a c h s u c h f a i l u r e .

Knetucky Glass Lined Tank Systems, Inc. 5/12/99 (date)

Barry T i p p e y

President (title)

000

(05-21-91)

PN 1 7 1

'

L -- n

y correspondence in relation to this bond should be directed lo: Wausau InsGiance Companies

. .

Bonding Bcx 8017 : Wausau, Wtsconsln 54402-8017

RUS aulletin 1780-13 Attachment 4 B I D 3OND

..

:aOW ALL MEN 3Y TIIXSE ?RESE,XTS, that we, the andersigaea, KENTUCKY GLASS LINED TANK SYSTEMS, INC. as Principal, and EMPLOYERS INSURANCE OF WAUSAU A MUTUAL COMPANY as Surety,.are hereby held and firmly b o u d unto ** as O m R i'n the penal surn of FIVE PERCENT OF THE AMOUNT B I D for the payment of which, well and truly to be mace, we hereby jointly and severally bir.a ourselves, successors and assigns. Signed, this 12TH day of MAY 19 99 . The Condition or' the above obligation is scch that a certain whereas the Princigal has submitted to 3 I D , attached hereto and hereby made a part hereof to enter into a contract in writing, for t.k ~

I

**

CONTRACT SEJ-2

WATER DISTRIBUTION SYSTEM

HOW, TKEXS?OXE, i. '

(a) If said 3 I D shall be rejected, or ecut (b) If s a i d 9x9 shall be accepted and the Principal shall and deliver a coztract in the Form of Contract attachment hereto (Prcperly coxpleted in accordance wit:? said B I D 1 and shall furnish a BOND for faithful perfornance of said contract, and for the payment of all persons perfoming labor furnishing materials in comectio?. :herewith, and shall in all other respects perform the agreenezt created by the acceptance of said BID, then :his obligation shall b e void, otherwise the same shall remain in force and effect; it 5eing ex9ressly understood and agreed that the liabillcy of the Surezy for ar.y and all claims hereunder shall, in no e*Jer.i,exceed the serial Z m O u n K of this obligatioa as herein stated.

**JESSAMINE SOUTH ELKHORN WATER DISTRICT 200 W MAPLE ST NICHOLASVILLE KY 40356

,

XUS B u l l e t i n 1 7 8 0 - 1 3 Attachment 4 ?age 2

..

The S u r e t y , f o r v a l u e r e c e i v e d , h e r e b y s t i p u l a t e s and a g r e e s t h a t t h e o b l i g a t i o n s of s a i d S u r e t y axd i t s BOND s h a l l b e 'in no way imgaired o r a f f e c t e d by any e x t e n s i o n of t h e t i m e w i t h i n which t h e O W 2 may a c c e p t such B I D ; and s a i d S u r e t y dces h e r e b y waive n o t i c e or' any such extension. I N WITNZSS WdlERE03, t h e P r i x i p a l and t h e S u r e t y have h e r e u t o s e t : h e i r hands and s e a l s , and such of t h e n a s a r e c o r p o r a t i o n s have caused t h e i r c o r s o r a t e s e a l s to be h e r e t o a f f i x e d and t h e s e p r e s e n t s t o be s i g n e d by t h e i r p r o p e r o f f i c e r s , t h e 6ay and y e a r f i r s t s e t f o r t h above.

KENTUCKY GLASS LINED TANK SYSTEMS, INC.

(L.S.1

Principal

BY

r p

\

EMPLOYERS INSURANCE OF WAUSAU A MUTUAL COMPANY Surery

I I 1

VERONICA A. MEYER, ATTORNEY-IN-FACT

-

IMPOXANT S u r e t y companies e x e c u t i n g BONDS must appear on t h e Tre.asury D e p a r t m e n t ' s most c u r r e n t l i s t ( C i r c u l a r 5 7 0 a s amended) and a u t h o r i z e d i o t r a n s a c t busizess i n thestatewhere t h e p r o j e c t is located.

000

I

-

Acknowledgement Attorney in Fact

,,o&al

'

OF

#'STATE

WISCONSIN \

I

county of

1

MILWAUKEE

12TH

8 I

day of

S.S.

, 19 99

MAY

,before me,

MARIE E. MAJCHER

a Notary Public in and for said

MILWAUKEE

County, State aforesaid, residing therein, duly

I

VERONICA A. MEYER

commissioned and sworn, personally appeared

known to me to be the person whose name is subscribed to the witbin instrument as the attorney in fact of

I

I

EhfPLOYERS INSURANCE OF WAUSAU A Mutual Company

and acknowledged to me that he subscribed the name of EMPLOYERS INSURANCE OF WAUSAU A Mutual Company thereto as surety, and his own as attorney in fact.

1 I 4

LV WITNESS WTEEXEOF, I have hereunto set my hand and affixed my officid sed, at my office in the said county of

in this certificate fint above written.

I

1

/ Notary Public in and for the county of

Skateof

MHJAUKEE

W I SCONS IN

My commission expires

I

the day and year

MILWAUKEE

9-10-00

scoo11 01-92

EMpLL)yERs INSURANCE

OF \ N m A

Mutual Company

POWER OF ATTORNEY (FOR BID BONDS ONLY) KNOW ALL MEN BY THESE PRESENTS: T h a t the EMPLOYERS INSURANCE O F WAUSAU A hlutual Company. a corporation duly organized and existing under the laws of the State of Wisconsin. and having its principal office in the City of Wausau. County of Marathon, State of Wisconsin. has made, constituted and appointed, and does by these presents make. constitute and appoint

DEBORAH A. BISHOP, VERONICA A. MEYER, JUANITA J. SCOTT. BETH MATYSIK, BARBARA L. RANGE, MAUREEN D. LELLA, JEAN E: JONES

BIACHE,

its true and lawful attorney-in-fact,with full power and authority herehy conferred in its name. place and stead, to execute, seal, acknowledge and deliver ANY AND ALL BID BONDS OR WRITTEN DOCUhlENTS INVOLVING BID GUARAN-

TEESORINTHENATURETHEREAFT'ER

............................................

and to bind the corporation thereby a s fully and to the same extent a s if such bonds were signed by the President, sealed with the corporate seal of the corporation and duly attested by its secretary hereby ratifying and confirming all that the said attorney-in-fact may do in the premises. This power of attorney is granted pursuant to the following resolution adopted by the Board of Directors of said Company a t a meeting duly called and held on the 18th day of May, 1973. which resolution is still in effect: "RESOLVED. t h a t the President and a n y Vice President - elective or appointive - of EMPLOYERS INSURANCE O F WAUSAU A Mutual Company be, and that each of them hereby is, authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute on behalf of EMPLOYERS INSURANCE O F WAUSAU A Mutual Company bonds, undertakings and all contracts of suretyship: and that any secretary or assistant secretary be. and that each or a n y of them hereby is. authorized to attest the execution of any such power of attorney, and to attach thereto the seal of EMPLOYERS INSURANCE O F WAUSAU A Mutual Company." "FURTHER RESOLVED, t h a t the signatures ofsuch officers and the seal of EhlPLOY ERS INSURANCE O F WAUSAU A Mutual Company may be affixed to a n y such power of attorney or to a n y certificate relating thereto by facsimile. and a n y such power of attorney or certificate bearing such facsimile signatures and facsimile seal shall be valid and binding upon the EhlPLOYERS INSURANCE O F WAUSAU A Mutual Company when so affixed and in the future with respect to a n y bond, undertaking or contract of suretyship to which it is attached." IN WITNESS WHEREOF, EMPLOYERS INSURANCE OFWAUSAU A Mutual Company h a s caused these presents to be 1 ST day of signed by the vice president and attested by its assistant secretary. and its corporate seal to be hereto affixed this

APRIL

.-1999

;

*

**

EMPLOYERS INSURANCE OF WAUSAU A Mutual Company Timothy C. Mulloy Attest:

'

%-c..

V i a President

Assistant secretary

R. J. Besicman STATE OF WISCONSIN ) 68.

COUNTY O F MARATHON ) Onthis 1ST dayof APRIL ,1999 , before me penona~~y came T h y C. Mulloy ,to me known, who king by me duly sworn, did depose and say that he is a via president of the EMPLOYERS INSURANCE OF WAUSAU A Mutualcompany. the corporation described in and which executed the above ~nsrmmenttha~he knows the seal of said corporation: that the seal affixed to said instrument is such corpom seal and that it was so affixed by order of the Board of Directors of said corporation and that he signed his name hereto by like order. I N WlTNESS WHEREOF. 1 have hereunto set my hand and affixed my official seal the day and year herein first above written.

Patricia A. Herdina NOTARY PUBLIC STATE OF WISCONSIN M y COMMlSSION EXPIRES MAY 19,2002 CERTIFICATE

Notary Public

@

STATE OF WISCONSIN ) CITY OF WAUSAU ss. COUNTY O F MARATHON ) I, the undersigned, assistant secretary of EMPLOYERS INSURANCE O F WAUSAU A Mutual Company, a Wisconsin corporation. do hereby certify t h a t the foregoing and attached power of attorney, WHICH MUST C O N T A I N A VALIDATING S T A T E M E N T P R I N T E D I N T H E MARGIN T H E R E O F I N R E D INK, remains in full force and h a s not been revoked; and furthermore that the resolution of the Board of Directors set forth in the power of attorney is still in force. 12TH Signed and eealed in the City of Wausau. Marathon County, S day

of

. -1999 -

@

R. J. Fksteman

---

Assistant Secretary

NOTE: IF YOU HAVE ANY QUESTIONS REGARDING T H E VALIDITY OR WORDING OF T H I S POWER O F ATTORNEY. CALLTOLL FREE (800)826-1661. (IN WISCONSIN. CALL (800)472-0041)

8154222 01-99

I

?US 3ulletln 1 7 6 0 - 1 3 Attachment 3

I

319

tt1 1::e e

S S tt a az ze e

cf cf KENTUCKY KEITUCw

*. C o u n t y S o i l t h E i k h o r n Nater

Nicholasville,

I

doir.5 h s x ' ess

y such power so execz?el in-; S e h : cerdse:! by cez5c;te sc executed and sealed shall, wfh respect tc ar,y bond or undefaking to which :t is azacheo. ccr,;lnue 12 3E vaild iinc b:ncir,c c4-# &:e Csr;.;any.'

APPENDIX B

Educarion, Arts and Humanities Cabinet

I I I I I

KESTLCKE- HERIT-IGE COUSCIL Paul E. Patton

Thc State

Hii;O:iC

Preccnxtion Office

Erecuiive Dir?cior and SHPO

Governor

Roy Peterson Cabinet Secreiary

David L. Jlorgan

\larch 13, 1998

Mr. Christopher Horne Horne Engineering 21 6 South hlain Street Nicholas\*ille,KY 30356

RE:

“ A n Archaeological Reconnaissance of a Proposed Ele\.ated W a t e r T a n k Site in Jessaniine County, Kentucky” By Derek RI. W’ingfield

Dear h4r. Horne: l‘he State Historic Preservation Office has received for review and approval tlie abo\fe referenced archaeological report. The sun’e!. found no e\idence of prehistoric occupation or historic arcliaeological remains in tlie project area. The project will 1iai.e no effect on an\; property listed in or eligible for listing in tlie National Register of Historic Places and I Iia\,e 110 ol>jecrions to its con st ruct ion. If \.ou have any questions please fzel free to contact David Pollack of niy staff at 502-564-

7005. Sincerely,

David L. hdorgan, Director Kentucky Heritage Council and State Historic Preser\,atioii Officer

,

J

JAMES

E. BICKFORD

PAUL E. PAITON GOVE~~NOR

SECRETLEY

COMNtOWdEALTH OF

KENTUCKY

I

'

NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION CABINET DE PARTME NT F 0R E N v I R 0 N ME NTAL P ROTECTI0N

I

FEAI\'KFOF\T OFFICE PAKK -14EEILLY RD FEAYKFOKT KY 40601

October 15, 1998 South Elkhorn Water District 200 West Haple Street Nicholasville, Kentccky 40356

I 1

E: DFJ #0570249-98-002 Water Syscem Improvements Contracts 5E J-1, SE J-2 Jessaine Co, Kentucky Dear Sirs: This is to advise that plans 2nd specifications covering the zbove referenced subject are F2FRO'V"tD with respect to sanitary features of design as of this date with the following stipulations: 1.

If FVC piping is ilsed, it must be NSF approved and manufactured in accordmce with ASTI4 standards.

2.

Upon cozpletion of construction, disinfe2tion shall be strictly in accordznce with the procedure designated in the State Regulations, which reads as fo1lc;Js: "A water distribution system, including stcrage distribution tanks, repaired porticns of existing all extensions to systems, or existing systems, shall be thoroughly disinfected before being placed into service. A water distribution system shall disinfect with chlorine or chlorine compounds, in zmounts as to produce a concentration of at least fifty (50) ppm and a residual of at least twenty-five (25) ppm at the end of 24-hours (24) and the disinfection shall be followed by a thorough flushing . 'I

p

Printed o n Recycled Paper

b3 An Equal Opponunity Employer 14IFID

South Elkhorn Water District October 15, 1 9 9 8 Page two New or repaired water distribution lines shall not be placed into service until bacteriological simples taken at the points specified in 401 K F 3 8:150 Section 4 ( 2 ) are examined and are shown to be negative following disinfecticn. 3.

FJI alternate acceptable method

for

storage

tank disinfection is as follows: Fill tank with enough water (containing a free chlorine concentration of at least 250 mg/l) to spray all inside tank surfaces with the chlorinated water. Repeat the spraying again at no less than 1.0 hour from the end of the first spraying. Drain the tank at no less than 30 minutes frcm end of second spraying before filling for u s e . 4.

The interior c0atir.g system for the proposed storage tank must be of a type approved by the Division of Water for use in contact with potzble water.

5.

The overflo-d and the main drain for: the proposed tank nust extend 10 feet from the base of the tank and discharge into a 2 ft. x 2 ft. x 2 ft. crushed stone pit or onto a splash pad. The outlet must be equipped with a noncorrodible screen installed within the pipe at a location least susceptible to damage by vandalism.

6.

For underwater crossing greater than 15 feet in width the following shall be provided: a.

The pipe shall be of special construction, having flexible water tight joints, except if concrete encased;

b.

valves shall be provided at both ends of water crossings so that the section can be isolated for testing or repair; the valves shall be easily accessible, and not subject to flooding; and the valve closest to the supply source shall be in a manhole; and,

8 'I I I I I I I I I I I E I I I 1 I I

South Elkhorn Water District October 15, 1998 page three c.

permanent taps shall be made on each side of the valve within the manhole to allow insertion of a small meter to determine leakage and for sampling purposes.

7.

References to elevated water storage tanks should be changed to standpipes in the specifications prior to bidding.

8.

When this project is completed, the owner shall subnit a written certification to the Division of Nater that the above referenced water supply facilities have been constructed and tested in accordance with the approved plans and specifications and the above stipulations. Such certification shall be signed by a registered professional engineer.

If this water line project will cross a strean or wetland, the attached Water Quality Certificatim will apply. Please read this certification and make this a part of any contract to install the water lines. I f you have m y cpesticns please contact John D o - J ~ ~ of the Wzter Quality Branch ~t 5 0 2 / 5 6 4 - 2 2 2 5 , extension 485. Since the requirexnts of hhinistrative Regulations 4 0 1 K7.iR Section 2 are met with regard to scbfluvial pipe crossings, a floodplain construction p e m i t will not be required pursuant to 'KRS 1 5 1 . 2 5 0 for this aspect of the project. Please note the rezerence to subfluvial pipe line crossings in the enclosed copy of the regulations. 4:050,

The finished water supplied to the custoners affected by this project will meet the current water quality parameters as dictated by the Federal Safe Drinking IQater Pact (PL 93-523), provided that construction of the project is completed in accordance with the approved plans and specifications and proper operation of the system is maintained. This approval has been issued under the provisions of KRS Chapter 2 2 4 and regulations promulgated pursuant thereto. Issuance of this approval does not relieve the applicant from the responsibility of obtaining any other approvals, permits or licenses required by this Cabinet and other state, federal and local agencies.

11 'I I ~

South Elkhorn \qater District October 15, 1998 Page four Unless construction of this project is begun w i t A n one year from the date of approval, the approval shall expire. If you have any questions concerning this project, please contact Bob Arnett at 502/564-2225, extension 578.

Sincerely,

& Vicki L. Ray, Brznch Manager V

DrinkiRg Water Branch Division of Water

I I I I

I

m I I I

Enclosures C:

Horne Engineering, Inc. Jesslmine County Eealth Department Public Service Coixnissicn Division of Plurbing Frankfort Regional Office 'K'aterQuality Branch Hater Resources Eranch Drinking \?ater Fi1es

I ,JAMES E. BICKFORD

PAUL E. PAT-TON

SEC~ETARY

GOVERNOR

COMMONWEALTH OF

KENTUCKY

NATURAL RESOURCESAND ENVIRONMENTALPROTECTION CABINET DEPARTMENT F 0R ENVIR 0 N M ENTAL PR OT ECTI0N FFAXGQST OFFICE Paix 14 REILLYRD F W W O ~ ~ TKY 40601

September 10,1998 Mr. Christopher Horne, P. E. 216 South Main Street Nicholasville, KY 40336

I

RE:

Jessaniine South Elkhorn Water District Southeast Jessaniine Rural Water Extension Project, Jessamine County

Dear Mr. Home: \Ye have reviewed the plans subnutted by your office and have determined that a stream constructio~~ permit it-ill not be required. Administrative Regulation 401 U R 4:030 yroiiiulgated November 6, 19S0, has exempted certain ?yes of construction from the provision of KRS 131.230, among them il-ere subfluvial utility or pipe crossings ~ . h i c hhave met specific construction criteria. Any design changes to the submitted plans that would not coniply with the criteria specified in 401 KAR 4:050, Section 2 must be subniitted to the Division of Water for written approval prior to implementation. (A copy of 401 KAR 4:030, Section 2 is enclosed) .

IC I I I I I I

I-

Since these stream crossings may require approval from the U.S.Army, Corps of Engineers, you should contact their district office for any requirements they niight have. The Water Quality Branch of the Division of Water \\-ill require a Water Quality Certification if the disturbance to an intermittent or solid blue line stream is greater than 200 linear feet. Contact Jolui Dovak at (502) 5643410.

Sincerely,

W A. Leon Smothers, P.E., Manager Water Resources Branch Division of Water

ALS/fa pc:

Frankfort Regional Office Betty Taylor

2%

Printed on Recycled Paper

i.3

An Equal Opponuniry Employer M/F/D

I

I 1

I

COMMOK\Z:EALTH OF KENTUCKY

Transportation Cabinet

James C. Codell, Ill Secretary of Transportation

Depsment of Highways, District Seven 7 6 3 New Circle Rd., NW., P.O. 11127 Lexingon, Kentucky 4051 2-71 27 6 0 6 / 2 4 6 - 2 3 5 3 - (kx) 606/2?6-2354 CliSord C. L i d s . P.E., Chief District Engineer

T. Kevin Flanery Deputy Secretary

Paul E. Patton Governor

Jessamine-South Elkhorn Water District 200 West Idaple Street Nicholasville, Kentucky 40356

Subject:

Jessamine Ccunty RS 0 5 7 - 1 5 4 1 - 0 0 0 . 3 0 0 KY 1 5 4 1 (Chrisxan Mill Road) Jes samine- South Elkhorn \qater District Utility (APP NO 0 7 - 0 7 3 7 - 9 8 )

Dear 2-pplicant: Attached is your application for a permit which has been approved by the Departnent of i-lishways. Please see that work is dcne in conformity with permit and applicable conditions. If you have any questions, please notify this office.

Sincerely,

Clifford C. Linkes, P.E. Chief District Engineer CCL/joh Attachments

Date

I

COM MOW'EALTH OF KENTUCKY

1

I

James C. Codell, Ill Secretary of Transportation T. Kevin Flanery Deputy Secretary

Tra ns porta t io n Cabinet Depariment of Highwsys, District Seven 763 New Circle Rd., N.W., P.O. 17127 Lexingon, Kentucky 4051 2-11 27 606/246-2555 - (Fix) 6061246.2354 Clizord C. Linkes, P.E., Chief District Engineer

Paul E. Patton Governor

E

I

c

Jessamine-South Elkhorn Water District 2 0 0 West Maple Street Nicholasville, Kentucky 40356

Subject:

I

Jessamine County RS 0 5 7 - 1 2 6 8 - 0 0 0 . 2 0 0 KY 1 2 6 8 (Sugar Creek Road) Jessamine-South Elkhorn Water District Utility (APE) EO 0 7 - 0 7 2 9 - 9 8 )

I

I 1 I I E

Dear !pplicant: Attached is your application for a permit which has been approved by the Department cf Highways. Please see that work is done in conformity with permit and applicable conditions. If ycu have any questions, please notify this office.

Sincerely,

Clifford C. Linkes, P.E.

I 1

Chief District Engineer CCL/ joh

Attachments

a I 2

1:ihTUCKY TCAYSPO?lATIOY C A B I N 0 MISSION " P P o v i x A SUE. t v i c i ~ h '~NVIRONI),.ZG+LLY ~. SOUND.AYD FISCALLI~~ESPOYSIS:E TRA~'SDOF~~ATION n'STfl2 M'HICh PR01.407fS ECONOMIC GR3H'TH h Y 3 ENHANCLS T Y t Q J U n Of LIFE IN Kth'iUChY' 'AN EQUAL O P P O R l U h l ~E I 4 P L m R M / F / D "

Date

COlvlh/lON\VEALTH OF KENTUCKY

Tra ns p o rtat i o n Cabinet

James C. Codell, I l l Secretary of Transportation

Department of Highweys, District Seven 763 New Circle Rd., N.W., P.O. 111 27 Lexingion. Kentucky 4051 2-11 27 606/246.2555 (Fzx) 606/246.2351 Cli?iord C. Linkes. P.E., Chief Dist:ict EnSineer

Paul E. Patton Governor

-

T. Kevin Flanery Deputy Secretary

Jessamine-Scuth Elkhorn Water District 200 Nest Maple Street Nicholasville, Kentucky 40356

Subject:

Jessamine County RS 057-0039-000.500 KY 0039 (Sulfur Well Road) Jessamine-South Elkhorn Water District Utility (APP NO 07-0738-98)

Dear Applicant: Attached is your application for a permit which has been approved by the Department of Highways. Please see that work is done in conformity with pernit and applicable conditions. If you have any questions, please notify this office.

Clifford C. Linkes, P.E. Chief District Engineer CCL/joh Attachments

Date

I

6.

MOTION 'UT JOUX KICXKLL SLCOKDEb BY STEVE CATUEART T8AT IT IS BEREBY ORDYSLED 81 TllE COURT TO C R A M AN EASFXENT 1'0 JESSAMINE cOUmEUI!ORN WATER DISTRICT TO LAT A WATER LINE ALONG THE FULLWING ROADS (SEE A T T A C i m W r ) SUBJECT TO ENGINEERS PLANS BEING APPROVED ET TEE COUNTY ROAD WCMBER AKD ANT FUTURE RELOCATlON COSTS M BE PAID BY WATER DISTRICT. . I I #

VOTING

FOR 6

I,x Cor D r i b c

II d 4

AGAINST 0

Begiwing II thc inlcncclion of Elm Fork Road vd Joe Cox Drive ud,encnding IO Burdrrto h e

:.---.,

- . ...... . .-.__.- . "*:e-+: . . . . . . ..... . . . . .. .... .. . .. ... . . . .. . .". . .

. ..-. -.. . . . .

.. ..*.

...I-

Burdraw Luu

114s

- I

.

.

.

. ...

- ........

Bcgihns 11 ~ l uinlerxWion ofJoe Cor D m c ud Burdraw h e uJ e a c n d q IOthc end of

B u r d m Lur .LL;Isia

..

--

..L._..

............

Ill8

Elm Folk

Beginning I I ihc ctnlcr of Hickmm Cicck bridge ud cncrdmp IO thc WCSI honling thc proptn) O f RJphR&iin(PVW 011~00.0501100)

Ill1

Elm Forl

Beginning a1 tk intcrvclion of Kelcr b h o r c ' i d r i w 8 y ( p V A c 07).00-OO.OSI 00)a d Elm Fort Road. continuing louihcrly , app~odrrulely700 fcct IO I)* uuiherl) proptny lint or R 54 Cmcr (Pt'AJ 0714ooM)S6 00)

P1gc

I

-2

.::.

Ill6

W111S Mlll

BWNUW u he m h e r l y propmy I ~ n eot B u n u d k ( P V A I O ~ I - O O - C W I I Oand ~ ~ c)onWUIW ~ p p

o x i ~1700 ~ ~ rea t e IO the n o n h u l y

proputylincolTomc Bunon(PVAN061.00.00-

0ll.al). 1111

Pollird

Begimng i t the ucrttrly propcny line o t t h c House CaxUay 4continuing undy dong Pollard Rord i p p o u m r t d y 70 lect IO the w t u l y piopeny line olHcuv Ccmctery ( P V M 074.W.00-011 00)

IIIb

h r s i n s hdgc

Bc6"unS 11 the castcrl) propcny lint o l D i n n y Reynolds (PVW 081.W.oOO16.00). concmuing wcncrly ipproxirnircly 700 feet to he ustcrly proptq Ilnc o f h l w Repold# ( P V M 0854040. 01800)

Ill(.

Kissins R l d p

Bes!nnins t l the crscrly propcfly Iinc c l D a \ i d Cob (?\'A# O8S.M.00-020 01). continuing ~ a t ipprorirm~t~y y 100 rnt lothe w t w ~ y p r o p c q linc of AM( S l r p (PVAl085-00-00. 021.00).

1116

Kissing R~dge

Bcpmng t i tk mnhcrly propeny line at Rc)nolds Ccmtcy ( P V M OSS-OO-00-OJO 00). conlinuing mthaly ipprol;lmrcety 300 rm IO the nonhuly popcrty hnc of Brutur SIINWI (PVW 01)S-OO-W. 011 00)

I

~

. . .. W l t d r u EAxmCnlS lcsumin F i d Cwn

1116

..

. pigc - 4

Beginring u the nonhcrly propeny line of KatNccn

Kissing Ridge

ruKy ~ V A # O O S ~ ~ Z ~continuing .W), w h d y ipproxinulcly Io0 fccl IO he nonhuly . p o p c n y line o f n d o r c Loman p V M OBS.00-

ocroz9.01). Ill6

Ill'

Kisdng Ridge

.

Black Bridgc b n c

!

_--

Bcgirving i t lhc northerly proputy line of lluvdorc Lomrn Q V M oh5-00M)-OZP.01). continuing wthcrly ipproximtely 600 fed to tk nonhedy propmy line ofCirl Pecl (PVA,UO8~.W.W.Ol9.0O).

flcginning i t thc intersection of Black Dridgc Lane and Sulfur Well Road. continuing approximately 5 0 0 fccl wcsierly on Black Bridgc bne.

II 2 1

john \Vaits b n e

Bcginninp i t the intcrrcction of l o b Watts Lane urth KY 1541, conliruing ucscerlp on John \VaIls b n c IO Ibclrnrn Crcck Bridgc

1121

John \\'ills Lane

BcgiMing at Ihc easterly propcfly lint of J c ~ e y tkkcll (PVA I 084.00.00402 OS), continuing wcrtcrly approximatdy 100 fcct to thc tarlcrly

propenylinc of Tcny Ssylor ( P V M 084.00-WW? 01) :;a

I

I

Ill;

Ta)lor Ridgc

Rcginning at rhc vc;:criy proptny line of l a w n Drnlulr (PI'AII 084.00.00.007.00). continuing

I Lock8

I130

"

I

I

i .

Beginning at the uustnl) proycny line or l q BI&~;nnm(pVrJ,O63-WDo-Old Do). continuing wmuly, ipproimrtcly I700 fcct dong thc mthcrly property linu of David D ~ I np V N 061WC0-011Ol) ud l i m y Hofbun @\'A I 063-00. 00-03500)IO thc unuly propcny line oiRogcr S\rmper(PVM 0~l.00-00-Oll.00).

1152

Tuta LUK

Be&ning u the intcnenion of Tcslcr LUK md Liitlc HicLmU, Rord. continuing southerly rpprordnutdy 0.40 milu on T u t e r Lux

I\\>

Johnr Lane

Beginning 11the intersection of KY.II.41 and lohn5 Lane,continuing muthcartcrly approrimatcly 0 70

mlu IO EO L . -.::

1 E I I I ..

I

..... --..- . . ,.. . . .

....

.----I-..--..

-__ . . ..... . .. .. . . . . . ,_.... -.-.. ....... .. .-.-.,.u-.,lr2,.:'... . .

.!

.

~

___

APPENDIX C

I I

VIII. ANALYSIS OF ACTUAL WATER USAGE - EXISTING SYSTEM - 12 MONTH PERIOD For Period November 1995 Meter Size A L L

S I Z E S

to October 1996

MONTHLY WATER USAGE Averaae

02,0003,0004,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,00015,00016,00017,00018,00019,00020,00021,00022,00023,000 24,00025,00026,00027,00028,00029,00030,00032,00034,00036,00038,00040,00042,00044,00046,00048,00050,00055,00060,000-

2000 Gal. 3,000Gal. 4,000Gal. 5,000 Gal. 6,000 Gal. 7,000Gal. 8,000Gal. 9,000Gal. 10,000Gal. 11,000Gal. 12,000Gal. 13,000Gal. 14,000Gal. 15,000 Gal. 16,000Gal. 17,000Gal. 18,000Gal. 19,000Gal. 20,000Gal. 21,000Gal. 22,000Gal. 23,000Gal. 24,000Gal. 25,000Gal. 26,000Gal. 27,000Gal. 28,000Gal. 29,000Gal. 30,000Gal. 32,000Gal. 34,000Gal. 36,000Gal. 38,000Gal. 40,000Gal. 42,000Gal. 44,000Gal. 46,000Gal. 48,000Gal. 50,000 Gal. 55,000 Gal. 60,000Gal. 65,000Gal.

NonResidential/ Commercial

Residentiall Farmer

1,000 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 1 1,500 12,500 13,500 14,500 15,500 16,500 1 7,500 1 8,500 19,500 20,500 21,500 22,500 23,500 24,500 25,500 26,500 27,500 28,500 29,500 31,000 33,000 35,000 37,000 39,000 41,000 43,000 45,000 47,000 49,000 52,500 57,500 62,500

+zjz 841.5

5.5

967.5 544

20

299 250 202.5

0

99

41

90

01

0

31

76.5

01

0

21

57

01

0

0 1

0 35 0 0 0

* 0 11

39 41

47

0 01

65,00070,00075,00080,00085,00090,00095,000100,000110,000120,000130,000140,000150,000160,000170,000180,000190,000200,000210,000220,000230,000240,000250,000300,000-

I I 8 I I

I 1 I I

I

70,000Gal. 75,000Gal. 80,000Gal. 85,000Gal. 90,000Gal. 95,000Gal. 100,000Gal. 1 10,000Gal. 120,000Gal. 130,000Gal. 140,000Gal. 150,000Gal. 160,000Gal. 170,000Gal. 180,000Gal. 190,000Gal. 200,000Gal. 210,000Gal. 220,000 Gal. 230,000Gal. 240,000Gal. 250,000Gal. 300,000Gal. 350,000 Gal.

67,500 72,500 77,500 82,500 87,500 92,500 97,500 05,000 15,000 25,000 35,000 45,000 55,000 65,000 75,000 185,000 195,000 205,000 21 5,000 225,000 235,000 245,000 275,000 325,000

Total Average Usage Total Water Purchased Total Water Sold

Note:

I

01

0

11

145

01

0

01

0

0 0 01

0 0 0

0

0 0

.q+ y0 0 0

(

0 0 0

1,4491 10,664) ( ( 7)

01

451

469)

1 1 132.5

The distribution of Users is based on actual user data from 1996 as included in the Preliminary Engineering Report. An Increase of 50 users has occured since that analysis. The additional existing customers were added to this table based on the same distribution pattern as the 1996 analysis; with the exception of some commercial users in Bellerive Plaza such as Kroger that were placed in this table based on historical data from comperable stores.

XIV. FORCAST OF WATER USAGE - INCOME - EXISTING SYSTEM - EXISTING USERS

Meter Average Size MONTHLY WATER USAGE Average

A L L S I

z E

S

I I

02,000 3,0004,0005,000

-

6,0007,0008,0009,00010,00011,00012,00013,00014,00015,00016,00017,00018,00019,00020,00021,00022,00023,00024,00025,00026,00027,00028,00029,00030,00032,00034,000 36,000 38,00040,00042,00044,00046,00048,00050,000 -

60,000-

55,000

2000 Gal. 3,000Gal. 4,000Gal. 5,000 Gal. 6,000Gal. 7,000Gal. 8,000Gal. 9,000Gal. 10,000Gal. 11,000Gal. 12,000Gal. 13,000Gal. 14,000Gal. 15,000Gal. 16,000Gal. 17,000Gal. 18,000Gal. 19,000Gal. 20,000Gal. 21,000Gal. 22,000Gal. 23,000Gal. 24,000Gal. 25,000Gal. 26,000Gal. 27,000Gal. 28,000Gal. 29,000Gal. 30,000Gal. 32,000Gal. 34,000Gal. 36,000Gal. 38,000Gal. 40,000Gal. 42,000Gal. 44,000Gal. 46,000Gal. 48,000Gal. 50,000 Gal. 55,000 Gal. 60,000Gal. 65,000Gal.

1,000 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 11,500 12,500 13,500 14,500 15,500 16,500 17,500 18,500 19,500 20,500 21,500 22,500 23,500 24,500 25,500 26,500 27,500 28,500 29,500 31,000 33,000 35,000 37,000 39,000 41,000 43,000 45,000 47,000 49,000 52,500 57,500 62,500

$21.00 $23.43 $28.28 $33.08 $37.83 $42.53 $47.18 $51.83 $56.48 $61 -13 $65.78 $70.43 $75.08 $79.73 $84.38 $88.98 $93.53 $98.08 $102.63 $107.18 $1 11.73 $1 16.28 $120.83 $125.33 $129.78 $134.23 $138.68 $143.12 $147.57 $154.25 $163.15 $172.05 $180.95 $189.85 $198.75 $207.65 $216.55 $225.45 $234.35 $249.92 $272.17 , * $294.42

Residential/ Farmer Jsage Income No. of Users (1000) 187 $3,927 1 87 127 317.5 $2,975 176 616 $4,976 187 841.5 $6,185 968 $6.657 176 134 I 871 I $5.698

Non-Residential/ Commercial sage Income

8

$168

5.5

.-yTq-EE

$0

0

532 $3.163 01

201

250 I $1.409

101

1551

$844

71

129.5I

$687

31

70.51

$362

55 57

$268 $277 $286

01

14.5

99 70 74 39 41 1

$80 $0

p

-* 0

3 2 2 1 11

$0

0

0

01

01

$0 $0

$0 $0

$489 $344

$362 $190 $199

$225 $234 .

$589

+I-+-=

01

01

$0 $0 $0

01

01

$0

'I I

65,000- 70,000Gal. 70,000- 75,000Gal. 75,000- 80,000Gal. 80,000- 85,000Gal. 85,000- 90,000Gal. 90,000- 95,000Gal. 95,000- 00,000 Gal. 100,000- 10,000Gal. 110,000- 120,000Gal. 120,000- 130,000Gal. 130,000- 140,000Gal. 140,000 150,000Gal. 150,000- 160,000Gal. 160,000- 170,000Gal. 170,000- 180,000Gal. 180,000- 190,000Gal. 190,000- 200,000Gal. 200,000- 210,000Gal. 210,000- 220,000Gal. 220,000 - 230,000Gal. 230,000 - 240,000Gal. 240,000- 250,000Gal. 250,000- 300,000Gal. 300,000- 350,000Gal.

-

I

67,500 $316.67 72,500 $338.92 77,500 $361.17 82,500 $383.42 87,500 $405.67 92,500 $427.92 97,500 $450.17 105,000 $483.55 1 15,000 $528.05 125,000 $572.55 135,000 $617.05 145,000 $661.55 155,000 $706.05 165,000 $750.55 175,000 $795.05 185,000 $839.55 195,000 $884.05 205,000 $928.55 215,000 $973.05 225,000 $1,017.55 235,000 $1,062.05 245,000 $1,106.55 275,000 $1,240.05 325,000 $1,462.55

Sub-Total Average Monthly Rate Average Monthly Usage

1 I I

1 1 1 1 0 0 0

1 1 1

I

67.5 72.5 77.5 82.5 0 0 0 105 115 125

$317 $339 $361

$383 $0 $0 $0 $484 $528 $573

+

$0

$0

01

01

$0

01

01

$0

01

01

$0 $0

+t+p

$617 $662

01

0 0

$0 $0 $0

*

* 01

0 0

01

01

01

01 0 0

0 0 0 0 0 0 0

* 0 0 0 0 0

$0

1

( 1,449 10,664/$67,692 ) ( (

7.36)

45 (

1

469

1

10.42)

Note:The distribution of Users is based on actual user data from 1996 as included in the Preliminary Engineering Report. An Increase of 50 users has occured since that analysis. The additional existing customers were added to this table based on the same distribution pattern as the 1996 analysis; with the exception of some commercial users in Bellerive Plaza such as Kroger that were placed in this table based on historical data from comperable stores.

I 'I

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$2,733

XV. FORCAST OF WATER USAGE - INCOME - NEW USERS - EXTENSION ONLY

Residential/ Farmer sage Income

Average Meter Size MONTHLY WATER USAGE Averaqe A L L S I

Z E S

02,0003,0004,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,00015,00016,00017,00018,00019,00020,000 21,00022,00023,00024,00025,00026,00027,00028,00029,00030,00032,00034,00036,00038,00040,00042,00044,00046,00048,00050,00055,00060,000-

2000 Gal. 3,000Gal. 4,000Gal. 5,000 Gal. 6,000Gal. 7,000Gal. 8,000Gal. 9,000Gal. 10,000Gal. 11,000Gal. 12,000Gal. 13,000Gal. 14,000Gal. 15,000Gal. 16,000Gal. 17,000Gal. 18,000Gal. 19,000Gal. 20,000Gal. 21,000Gal. 22,000Gal. 23,000Gal. 24,000Gal. 25,000Gal. 26,000Gal. 27,000Gal. 28,000Gal. 29,000Gal. 30,000Gal. 32,000Gal. 34,000Gal. 36,000 Gal. 38,000 Gal. 40,000Gal. 42,000Gal. 44,000Gal. 46,000Gal. 48,000Gal. 50,000 Gal. 55,000 Gal. 60,000Gal. 65,000Gal.

1,000 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 11,500 12,500 13,500 14,500 15,500 1 6,500 17,500 18,500 19,500 20,500 21,500 22,500 23,500 24,500 25,500 26,500 27,500 28,500 29,500 31,000 33,000 35,000 37,000 39,000 41,000 43,000 45,000 47,000 49,000 52,500 57,500 62,500

$21.00 $23.43 $28.28 $33.08 $37.83 $42.53 $47.18 $51.83 $56.48 $61.13 $65.78 $70.43 $75.08 $79.73 $84.38 $88.98 $93.53 $98.08 $102.63 $107.18 $1 11.73 $1 16.28 $120.83 $125.33 $129.78 $134.23 $138.68 $143.12 $147.57 $154.25 $163.15 $172.05 + $180.95 $189.85 $198.75 $207.65 $216.55 $225.45 $234.35 $249.92 $272.17 $294.42

80 521 41 30 I

I

Non- Residential/ Commercial

80 $1,680 1301 $1.218 143.51 $1,159 135 I $992 137.51 136.5

*--j--xy% I

71

I

66.51

z9: $395

$141

$0

01

01

01

01

-+--+-=

01 01

01

01

-q----+

$0 $0 $0

$0

0 0 0 0

0 0 0 0

$0 $0 $0 $0

yp

+j--j-+ $0

$0 $0

-+I-+%0

01 01

$0

+J+p 0

0

q-j---+ 0

.

$0 $0

$0

+pJ---+ 0

0

$0

0

$0

-+ $0

0

0

01

01

01 01

0 0

$0 $0 $0 $0

01

01

0 0

0 0

$0 $0 $0

II 'I 'I

65,000- 70,000Gal. 70,000- 75,000Gal. 75,000- 80,000Gal. 80,000- 85,000Gal. 85,000- 90,000Gal. 90,000- 95,000Gal. 95,000- 100,000Gal. 100,000- 110,000Gal. 110,000- 120,000Gal. 120,000- 130,000Gal. 130,000- 140,000Gal. 140,000- 150,000Gal. 150,000- 160,000Gal. 160,000- 170,000Gal. 170,000- 180,000Gal. 180,000- 190,000Gal. 190,000- 200,000Gal. 200,000- 210,000Gal. 210,000- 220,000Gal. 220,000- 230,000Gal. 230,000- 240,000Gal. 240,000- 250,000Gal. 250,000- 300,000Gal. 300,000- 350,000Gal.

67,500 $316.67 72,500 $338.92 77,500 $361.17 82,500 $383.42 87,500 $405.67 92,500 $427.92 97,500 $450.17 105,000 $483.55 115,000 $528.05 125,000 $572.55 135,000 $617.05 145,000 $661-55 155,000 $706.05 165,000 $750.55 175,000 $795.05 185,000 $839.55 195,000 $884.05 205,000 $928.55 215,000 $973.05 225,000 $1,017.55 235,000 $1,062.05 245,000 $1,106.55 275,000 $1,240.05 325,000 $1,462.55

Sub-Total Average Monthly Rate Average Monthly Usage

01 01

01 01

$0 $0

* 01

01

01

01

$0 $0

*+Jq% +p 0

0

$0

$0

$0

$0

0)

:*

$0

qqs 01

01

0

$0

$0

$0

01

01

$0

+J---+ $0

(

01

01

01

01

$0 $0

01

01

$0

3001 (

1,2551 $9,803) ( 4.18)

91 (

91 1.00)

$189)

I 1

I I

u I I I 1

I I I I I I I

I I

XVl(a)PROPOSED OPERATING BUDGET - EXISTING USERS ONLY (1st Full Year of Operation) Year Ending

1999

A. Operating Income: Water Sales Disconnect/Reconnect/Late Charge Fees Other (Describe)

$

845,092 15,500

(

1

$

860,592

Less Allowances and Deductions Total Operating Income...............................................................................

B. Operation and Maintenance Expenses: (Based on Uniform System of Accounts prescribed by National Association of Regulatory Utility Commissioners) Source of Supply Expense Pumping Expense Water Treatment Expense Transmission and Distribution Expense Customer Accounts Expense Administrative and General Expense

$

300,000 5,500 0 56,000 38,000 160.200

Total Operating Expense..............................................................................

$

559,700

Net Operating Income..................................................................................

$

300,892

Interest on Deposits Other (Identify)

$

2,000

Total Non-Operating Income .....................................................................

$

2,000

D. Net Income...................................................................................................

$

302,892

FmHA Interest FmHA Principal Non- FmHA Interest Non- FmHA Principal

$

32,771 12,177 84,815 71.126

Total Debt Repayment

$

200,889

$

102,003

C. Non-Operating Income:

E. Debt Repayment:

F. Balance Available for Coverage and Depreciation.....................

WII. PROPOSED OPERATING BUDGET - EXISTING & NEW USERS (1st Full Year of Operation) Year Ending

1999

A. Operating Income: Water Sales Disconnect/Reconnect/Late Charge Fees Other (Describe)

$

989,103 18,500 0

Less Allowances and Deductions Total Operating Income...............................................................................

$

1,007,603

B. Operation and Maintenance Expenses: (Based on Uniform System of Accounts prescribed by National Association of Regulatory Utility Commissioners) Source of Supply Expense Pumping Expense Water Treatment Expense Transmission and Distribution Expense Customer Accounts Expense Administrative and General Expense

67,000 46,000 176.200

Total Operating Expense..............................................................................

$

624,127

Net Operating Income..................................................................................

$

383,477

Interest on Deposits 0t her (I dentify)

$

2,000

Total Non-Operating Income .....................................................................

$

2,000

D. Net Income...................................................................................................

$

385,477

FmHA Interest FmHA Principal Non- FmHA Interest Non- FmHA Principal

$

101,052 57,698 106,302 85,450

Total Debt Repayment

$

350,502

$

34,974

C. Non-Operating Income:

E. Debt Repayment:

F. Balance Available for Coverage and Depreciation.....................

XVIII. PROPOSED OPERATING BUDGET - NEW USERS - EXTENSION ONLY (1st Full Year of Operation) Year Ending 1999

I ~1 I

8 I

e I

A. Operating Income: Water Sales Disconnect/Reconnect/Late Charge Fees Other (Describe)

!8

Less Allowances and Deductions Total Operating Income...............................................................................

144.011 3,000

1

(

$

147,011

B. Operation and Maintenance Expenses: (Based on Uniform System of Accounts prescribed by National Association of Regulatory Utility Commissioners) Source of Supply Expense Pumping Expense Water Treatment Expense Transmission and Distribution Expense Customer Accounts Expense Administrative and General Expense

600 11,000 8,000 16.000

Total Operating Expense..............................................................................

$

64,427

Net Operating Income..................................................................................

$

82,585

Interest on Deposits 0t her (Identify)

$

0

Total Non-Operating Income .....................................................................

$

0

D. Net Income...................................................................................................

$

82,585

FmHA Interest FmHA Principal Non - FmHA Interest Non- FmHA Principal

$

68,281 45,521 21.487 14i324

Total Debt Repayment

$

149,613

C. Non-Operating Income:

E. Debt Repayment:

F. Balance Available for Coverage and Depreciation..................... $

(67,029)

3U

I I I I I I I I I I I 1

8 I 1

8

u I

PRELIMINARY ENGINEERING REPORT

SOUTHEAST JESSAMINE RURAL WATER EXTENSION Lexington South Elkhorn Water District Jessamine County, Kentucky

November, 1996

Prepared by: Home Engineering, Inc. 216 South Main Street Nicholasville, Kentucky 40356

Table of Contents I . General ................................................................................................................................ A. Area to be Semed ............................................................................................................ B. Existing Facilities ...................................................................................................... C. Proposed Facilities and Services ............................................................................. 1. General ........................................................................................................... 2.Land ................................................................................................................ 3. Rights ............................................................................................................. D . Proposed System ....................................................................................................... 1.Water Supply ................................................................................................... a.Sources ................................................................................................. bTreatment............................................................................................ cStorage................................................................................................. dPressure............................................................................................... e .DistributionSystems........................................................................... f . Hydraulic Calculations in Tabular Form ..................................... E.CostEstimate.............................................................................................................. F. Annual Operating Budget ....................................................................................... 1.Income............................................................................................................ 2. Operation and Maintenance Costs .............................................................. 3. Capital Improvements .................................................................................. 4 . Debt Repayments ........................................................................................ 5 . Reserve ......................................................................................................... G. Construction Problems .......................................................................................... H. Conclusions and Recommendations ....................................................................

1 2 4 5 5

6 7 8 8 8 10 11 11 12 13 13 16 16 17 18 18 19 19 21

Table of Appendices Exhibits.............................................................................................................. Appendix A KDOT Highway Map with Project Area.................................... Exhibit I Proposed Service Area Boundary Map....................................... Exhibit I1 Topographical Map of the Service Area.................................... Exhibit I11 Letter from Sharon Fugate, Public Health Director................ Exhibit IV Exhibit V LSEWD 1996 Budget ................................................................... LSEWD 1994 and 1995 Auditors Reports................................. Exhibit VI Exhibit VI1 LSEWD Existing Rate Schedule ................................................ Actual Water Usage Analysis ..................................................... Exhibit VI11 Existing Long - Term Indebtedness ........................................... Exhibit IX Exhibit X Branch Line Map of Proposed Service Area ............................ Letter from Roy W. Mundy, KAWC ......................................... Exhibit XI Total Project Cost Summary ....................................................... Exhibit XI1 Proposed Rate Schedules ............................................................ Exhibit XI11 Forecast of Water Usage - Existing Customers......................... Exhibit XIV Forecast of Water Usage - New Users ...................................... Exhibit XV Proposed Operating Budget - Existing Users Only................... Exhibit XVI Proposed Operating Budget - New Users Only ....................... Exhibit XVII Proposed Operating Budget - Existing and New Users .......... Exhibit XVIII Actual Water Use Data (LSEWD,November 1995 .October 1996) ........... Appendix B

............................. Hydraulic Calculations .................................................................................... Engineering Estimate by Individual Branch Lines .........................................

Water Purchase Contract between LSEWD and C. 0. N.

Appendix C Appendix D Appendix E

I 1 1.

Project Area Map HUD CDBG Application

July 15, 1996 Jessamine County

/I

I

I 1 I I I I

Scale in M i l e s Proposed Standpipe Exisiting Sewage Treatment Plant Existing Water Treatment Plant Eitisting Nicholasville Water Line Existing Spears Water Co.Water Line Proposed Water Lines Water Line Project Sub-Area Minority Concentration Area Major Road Road RaiI road

1

0 BGADD--GY

Flood-ProneArea

I.

General

A 1995-1996 count of Jessamine County residents indicated that about 800 homes were without access to a community water supply. Jessamine County Fiscal Court has taken the initiative to complete the project discussed in this report in order to reduce this number of unserved residents. The project proposed in this report will reduce the number of unserved residents by half. The Fiscal Court asked that the Lexington South Elkhorn Water District to take ownership of the project and to maintain and operate the service area once the project is complete. The District will control the system in addition to it's existing facilities in the northwestern portion of the County.

The project includes the construction of approximately 35 1/2 miles of 6" water line and two 100,000 gallon stand pipes with a total cost estimated to be $2,714,511. The applicant has prepared this report with the hope and anticipation that the finances will be achieved primarily through a HUD CDBG augmented by a loan from Rural Development. Smaller contributions from the Jessamine County Fiscal Court, LSEWD, and tap-on fees generated by the project will complete the funding required.

Residents of the proposed project area currently attempt to provide themselves with an adequate water supply via springs, wells, and cisterns. Utilizing water supplies derived by these means, leads to economic hardship for the customer, 1

health risks, and a numerous problems related to an unreliable source. It is the

I I I I I I I I I I 8

I I

intent of this project to elevate the problems that face the residents of Southeast Jessamine County.

NOTE: All exhibits referenced in this report are found in Appendix A.

A. Area to be Served

The area to be served by this project can generally be described as the southeastern portion of Jessamine County. Exhibit I is a Kentucky Department of Transportation Highway Map of the County with the project area delineated. Other satellite areas previously included in this project, that were subsequently deleted are shown on this exhibit and crossed out as a result of their deletion. Exhibit I1 is the Proposed Service Area Boundary Map of the project on a USGS planameteric quad sheet. This exhibit gives a much more detailed description of the service area.

Areas 2-6 also shown on this

exhibit, have been deleted from the service area for this project. Area 1 comprises the entire service area for the project and was annexed to the

LSEWD by order of County Judge Executive in the fall of 1996. The eastern and southern boundaries of the area is the Kentucky River, while the northern and western boundaries are described by individual property owners referenced by their PVA number. A very detailed description of the boundary

U I

I

2

1 ‘I 1 I 18

is given on exhibit 11.

Exhibit I11 is a Topographic Map of the service area which includes the location of the pipelines proposed by this project. The topographical features of this map lend insight into some of the major obstacles facing the project. Hickman Creek is a major water course flowing through the project area. It will be necessary to cross Hickman Creek in three places in order to serve the project. Steep terrain is a possibility across the majority of the service area. Although the terrain is steep and in places approaching mountainous, the

‘I

elevations are relatively low when compared with the rest of the County. The project area is located sufficiently down gradient of its source to maintain sufficient pressure by a gravity feed, therefore the customers can be served adequate water pressure without the necessity of a booster pump station.

The residents of the proposed project area experience many problems with current means of obtaining potable water. A very detailed explanation of

I I I I

these problems is contained in the HUD CDBG Application for Jessamine County, Kentucky dated July 15, 1996. In that document a needs survey is summarized in which the residents of the area shared some of the problems they experience, including: contaminated water, potential illnesses, inclement weather difficulties, drought problems, electrical failure, high cost of hauling water, the necessity to use water sparingly, and many others. Exhibit IV 3

is a letter from Sharon Fugate, Public Health Director for Jessamine County Health Department, addressed to County Judge Executive Neal Cassity. In this letter Ms. Fugate espouses her unconditional support for the project and describes the real need that exists from a Public Health standpoint.

B. Existing Facilities

The existing facilities of LSEWD are exclusively located in the western portion of Jessamine County. The District does not maintain or operate any facilities in the general vicinity of the subject project. Therefore the proposed system will be completely independent of the existing District system. The two areas will function as two separate systems within the same Water

District. For this reason a limited amount of attention will be placed upon the existing facilities of LSEWD in this report. At the present time, LSEWD is operating in excellent condition, both physically and financially. Since LSEWD does not have facilities in the vicinity of the project, the Southeast

1 I 8

8

Rural Water Extensions will receive its source of water from the City of Nicholasville.

Exhibit V is a copy of LSEWD's 1996 Budget which includes actual costs and income from operating year 1995. Exhibit VI is a copy of the past two auditors reports for the District, dated December 31, 1994, and December 31, 4

1995. The Existing Rate Schedule is included in this report as Exhibit VII.

I 1.

An Analysis of Actual Water Usage for the Existing System from the period of November 1995 to October 1996 is included as Exhibit VIII. The Water Usage Analysis was derived from historical usage data obtained from the District Office which is attached as Appendix B.

The District is currently repaying debt from two previous loans. A summary of these loans is given on Exhibit IX. The 1971 loan from Farmers Home Administration is the loan used to construct the original facilities of the Water District. The KIA loan of 1993 funded an extensive expansion which included 20 miles of new waterline and a 500,000 gallon storage tank.

C. ProDosed Facilities and Services

1. General The proposed project is comprised of 35 1/2 miles of 6" waterline and two 100,000 gallon standpipes. The system will be designed to meet the standards and regulations set forth by the Division of Water and the Public Service Commission. Due to the elevation of the proposed service area and its relation to the proposed supplier (City of Nicholasville Water Distribution System) no booster pump station will be required in order to provide adequate pressures to the customers. In fact pressure 5

reducing vaults on main lines as well as individual PRV's will be required to maintain maximum pressure at an acceptable level. Exhibit X is a Branch Line Map of the proposed project. Alphabetic identifiers are labeled on each segment of pipeline in order to identify branches that make up the entire project.

LSEWD proposes to install 6" waterline throughout the entire project. It is a District policy not to install any pipes of less than 6" in diameter due to numerous conflicts that have arisen in the past resulting from under sized lines. In a good faith effort, the District has pledged $30,000 of it's own money toward the funding of the project in order to compensate for this requirement. With the exception of minor variations in methods to distribute water to residents, there is no feasible alternative to piping potable water. Water must be transported from a source to the consumer.

It is the intent of this project to achieve this goal in a responsible and economical fashion.

2. Land LSEWD will require 20 foot easements centered on the proposed waterlines when traversing private property. Efforts will be made to install waterlines adjacent to public road rights of way. In some areas it may be advantageous to deviate from this practice in order to take advantage of 6

more favorable topographic conditions. Location alternatives are limited due to the nature of the project. Most of the water line proposed in this project are distribution lines delivering water to users, therefore these lines must be installed in a relatively inflexible configuration.

3. Rights ,

As stated in the previous section LSEWD will obtain easements over private property for most of the waterline. In some cases it will be necessary to install waterline on public rights of way. Encroachment permits will be required when water line is laid on rights of way containing state highways. This will be necessary at several road crossings or in any event where right of way provides a more attractive alternative than private property. The two proposed standpipes constructed in association with this project will be located on parcels of land purchased by LSEWD. It is anticipated that these two sites will be located as shown on the Branch Line Map (Exhibit X). Where stream crossings are required, a stream construction permit must be obtained from the Division of Water.

The Health Department requires that the public be provided with a safe supply of water. As explained in her letter (Exhibit IV ), Sharon Fugate is of strong opinion that the water supply to the residents of Jessamine County will be dramatically improved with the construction of this project. 7

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jl

It is clear that potential health problems currently exist that would be mitigated by this project.

D. ProDosed Svstem

1. Water Supply a. sources The proposed waterline will be constructed in accordance with the Division of Water as well as Public Service Commission regulations. These regulations require that each individual meter be delivered a normal operating pressure of at least 30 psi and not greater than

150 psi. The usage requirement of the project is anticipated to be approximately 45,000 gallons per day (.045 million gallons per day).

In order to provide the requirements listed above, the supplier of water to the project must be capable of providing an adequate source. The source of water for the proposed project will come from the City of Nicholasville’s Water Treatment Plant. The Plant has the capacity of treating 6 million gallons per day and currently operates at less than

50% of capacity. The maximum day output of the plant to date is 3.6 million gallons. Since the projected use of the project is less than .05 million gallons per day, the source of water proposed for this project is clearly adequate for its need. 8

The tie-in for the proposed project will occur within 1,100 feet of the City’s main transmission lines between the Treatment Plant and the City. Therefore it will be located between two elevated tanks in the City and the booster pump located at the Treatment Plant. The City’s Distribution System is located in a higher elevation zone than the proposed project. For this reason pressures delivered to the area will be sufficient to serve the project without the aid of additional booster pumps. Gravity will feed the proposed standpipes that will be built in association with the project.

Spears Water Company has several small diameter distribution lines located adjacent to the project area. These lines are shown on Exhibit X with pipe sizes labeled. Spears Water Company also purchases it’s water from the City of Nicholasville. Due to the under sized lines in the Spears Water Company System, it is unfeasible to rely on it as a source for the subject project.

Kentuclq American Water Company (KAWC) was contacted to ascertain whether it had any interest in serving the proposed project. The location of the nearest KAWC watermain precluded them from having a feasible opportunity to participate in the project. Exhibit XI is 9

a letter from Roy W. Mundy of KAWC , declining to participate in the project.

The City of Nicholasville has executed a water purchase contract with LSEWD in which they have agreed to provide water to the proposed service area for a period of at least 45 years. There is no limit to the amount of water sold. A copy of the Water Purchase Contract is included as Appendix C of this report.

b. Treatment It is not anticipated that any additional treatment will be required on the water that the City of Nicholasville delivers to the proposed service area. The proposed tie-in location is less than 10,000 feet from the Nicholasville Water Treatment Plant. Therefore chlorine residuals in the water received by the proposed system should be acceptable. Regular testing and monitoring will be conducted in accordance with Division of Water regulations in order to insure the quality of water. This testing program will be implemented in conjunction with the testing program currently in place on existing LSEWD system. Two standpipes will be constructed and will be equipped with telemetry devices in order to control solenoid valves. This will allow proper turn over of water inside the tanks. Regular filling and emptying of the 10

~I

tanks, reduces the potential of stagnated water.

A very important contribution to good water quality is the regular flushing of distribution lines. This project has proposed the installation of 50 blow off hydrants at a rate of 1.4 hydrants per mile in order to

achieve this goal. The hydrants will be utilized in conjunction with the regular flushing program that is in place on the existing system of the LSEWD.

c. Storage According to Public Service Commission Regulations, each Distribution System must have the storage equivalent of one day of usage. As shown

on Exhibit I11 and X two 100,000 standpipes are proposed for installation. The combined volume of these tanks will satis& PSC regulations, even during peak usage periods. It is anticipated that the standpipes will be constructed 100 feet tall with overflow elevations of 1120 at the Pollard standpipe and 1060 at the Sugar Creek Road standpipe.

d. Pressure Public Service Commission regulations require that each individual service receive a minimum of 30 psi and a maximum pressure of 150 psi 11

at the meter. Achieving the minimum pressure will not be a problem for the subject service area. In fact, gravity from the City of Nicholasville's supply will provide adequate water pressure across the District without the necessity of an additional booster pump in the proposed service area. High pressures however, will be of some concern. Pressure reducing vaults will be necessary in order to control pressures. In areas where pressure reducing vaults are not cost effective individual PRV's will be located on customers meter settings. The installation a PRV between the two proposed standpipes will create two separate pressure zones within the system. Thus explaining the different overflow elevations of each stand pipe.

e. Distribution Systems Distribution Systems for the proposed project will be constructed in accordance with the Division of Water and Public Service Commission regulations. The system proposed is comprised of 187,050 lineal feet of

6" waterline. As discussed in section I.C.1.' the District's policy is to construct no waterlines less than 6" in diameter. Therefore all waterlines within the project will be 6" waterlines. The predominate portion of the waterline constructed will be PVC, the exception to this will occur at creek crossings where ductile iron pipes will be installed. Sixty percent of the PVC is class 200 and forty percent is class 250. Class 12

250 pipe will be laid in areas of lower elevation in order to withstand high pressures. Section I.E. contains a much more detailed break down of construction quantities. Some other key features to be installed with this project include four 4" PRV vault, one 6" PRV vault, one master meter vault, one telemetry system in order to operate the master solenoid valve.

I

f. Hydraulic Calculations in Tabular Form Attached to this report as Appendix D is a copy of the hydraulic calculations utilized in conjunction with this report. The calculations

1 I

were computed on a hydraulic modeling program called KYPIPE 3.

E. Cost Estimate

I

E 1

I E I

n I 8

The total cost of the proposed project is estimated to be $2,714,511. Exhibit

XI1 is a summary of all costs associated with the project. A list of each portion of this summary is given below with a description of the associated activity.

Construction: Appendix E of this report is the detailed engineering estimate

for the construction portion of this project. The first page is a summary of

construction costs for the entire project. The remaining pages are cost 13

I

R

estimates for each branch line of the project. These branches are graphically defined on Exhibit X.

Land Aquistion: This includes the cost anticipated to cover the aquistion

of two standpipe sites. Due to the strong support of area residents it is anticipated that most easements will be donated. To the knowledge of the project team, not one voice of opposition has been made publicly regarding this project.

Engineering: Preliminary, Design, and Inspection: This includes the services

to provide professional execution of the project from concept to completion. The design and inspection fees are based on the sliding scale recommended by Rural Development as a percentage of construction cost. The preliminary engineering cost is based on costs from similar projects of comparable magnitude.

Legal Services: Legal services will be required in connection with RD Bond

Sale and Kentucky Public Service Commission matters.

Additional Engineering: Additional engineering services are anticipated to be

required in the following areas: Easements / Land aquistions 14

8

I

Sites / Property survey Appearances before regulatory agencies

I B P 1

I

Detailed staking in rough terrain Contract administration for two contracts (distribution lines & standpipes)

Geotechnical Services: Geotechnical services will be required at the two tank

sites to assure appropriate tank foundation conditions.

Interest During Construction: Since the permanent RD loan is not

consummated until near the end of construction funds need to be available to pay the interest on the interim financing.

‘E

Planning (including archaeological survey): This includes costs incurred by

the applicants designee to determine the project viability.

Contingencies: Contingencies are required to supplement any project activity

in which a dollar short fall might occur.

HUD CDBG Administration: This portion of the project includes activities related to the development of a HUD CDBG grant application.

15

1 1 I I D

D 5

E 1 I’

F. Annual Operating: Budnet

1. Income In order to finance the construction of the proposed project the LSEWD will increase its rate by $3.00 to all customers, including new and existing users. This will be achieved by adding $3.00 to all minimum bills. In addition to an across the board rate increase, a $6.00 surcharge will be assessed to all new users in the subject project area. Two separate proposed rate schedules have been developed and have been included in this report as Exhibit XIII.

Utilizing the new rate schedule, a forecast of water usage and income derived by water usage was developed. Income derived from existing customers is shown on Exhibit XIV, and income derived from new users is shown on Exhibit XV. As explained in section I.B., the distribution of

users by incremental quantities, was derived from historical data maintained by the Water District Billing Office (data is included as Appendix B). It is anticipated that future usage will be similar to the pattern that currently exists. The usage distribution shown on the new users forecast was derived in order to create a reasonable distribution with an average usage of approximately 4,200 gallons per customer, as suggested by Rural Development.

I I

16

The income generated by water sales is converted to an annual equivalent and comprises the majority of the proposed operating budget. The proposed operating budget is included for the Existing Customers, New Users and a combination of both for the entire District (the District subsequent to the completion of this project). These budgets are included as Exhibits XVI, XVII, and XVIII in this report.

A small portion of income is included on the proposed operating budgets from funds generated through disconnections and late charges, etc. These values are based on the current budget for the District.

2. Operation and Maintenance Costs Operation and maintenance costs on the Proposed Operating Budget for existing users only (Exhibit XVI ), are taken from the 1996 budget with a modest increase for inflation to the year 1998. It is anticipated that this project will be completed at that time.

It is expected that 309 new customers will be generated by the proposed project. This is approximately 22% of the 1,405 existing customers in

LSEWD. Operation and maintenance costs on the Proposed Operating Budget for new users only (Exhibit XVII ) were derived by multiplying operation and maintenance costs from the existing customer budget by 17

22%. The cost associated with Source of Supply of Water for the new service area was derived by applying the executed agreement between LSEWD and the City of Nicholasville (which includes a water usage rate of $1.81 per 1,000 gallons) to the amount forecasted on Exhibit XV, Water Usage Forecast (with 5% added in for line losses). Pump expenses are zero for the proposed project due to the fact that no additional booster pump station will be required with this project.

The operation and maintenance costs of existing and new users is combined on Exhibit XVIII. This Exhibit comprises the Proposed Budget for the entire District, subsequent to completion of this project. Exhibit VI (current budget for LSEWD), includes actual costs of operation for 1995, which substantiates the operation and maintenance budget cost estimates included in the forecasted budgets.

3. Capital Improvements

The district does not expect to initiate capital improvements other than that contained in this project.

4. Debt repayments

LSEWD is currently repaying two debts. The first is a loan from the Farmers Home Administration that was received in 1971 in the amount of 18

$120,000.00. The second is a loan from KIA that was received in 1993 in the amount of $1,784,276.00. These two loans combined to create a total debt repayment cost to the District of $169,399.00 annually (see Exhibit IX). The addition of the loan required to finance the subject project will create an additional debt repayment of $102,591.00 leaving the total debt repayment line item of the District’s budget at a combined $271,990.00.

E

5. Reserve

As specified by the Rural Development, one tenth of the total annual

1 I

debt repayment should be included in the budget as a reserve. This is otherwise known as coverage and listed as line item F in each of the three proposed operating budgets. By inspecting the combined Existing

s 1 1

and New Users Proposed Budget, it is clear that an amount in excess of 10% is achieved with the proposed rate structures in place.

G.

Construction Problems

The topography of the project area will present challenges relating to the

1 I

installation and construction process. The topography of the area is considerably more wooded and much less maintained than other portions of Jessamine County. The steep terrain will present an obstacle from the stand 19

1

point of establishing a flat base from which to dig trenches, unload materials, and to install the pipelines. It is anticipated that a trenching machine will be utilized for excavation of ditches. In order to operate a trenching machine

on steep terrain, a path must be cleared and a bench constructed to create a level surface on which the trencher will operate. Subsequent to the completion of waterline installation the disturbed areas will be regraded to their original contours.

Perhaps the largest obstacle to over come on the subject project will be the presence of shallow subsurface rock. Based on prior experience in the project area, it is expected that a considerable amount of rock will be encountered during the excavation of the ditches. As noted in the previous paragraph it is anticipated that a trenching machine will be utilized for the excavation of trenches. Perhaps the biggest benefit of utilizing the trenching machine is its ability to excavate through rock. Trenching machines pulverize rock encountered during excavation, thereby creating a fine dust which is suitable as backfill material in combination with soil.

The engineering estimate completed for this project anticipates that there will be 2250 lineal feet of stream crossings associated with the construction of pipeline for this project. Construction at stream crossings present a 20

challenge with regard to the management of ground water and the potential of rising surface water. Coffer dams and sump pits can be created in order to pump water infiltrating into an excavation. There will also be requirements placed on the contractor to control erosion and mitigate sediment migration. This will be achieved through check dams, silt fences, and hay bales as well as proper planning and anticipation of potential problems. Any construction within the flood plain of a creek having a watershed of one square mile or larger will require a stream construction permit from the Division of Water.

H.

Conclusions and Recommendations

Rarely is a concept proposed of the magnitude of this project without a considerable amount of opposition from various individuals or organizations. Despite a formal public hearing, several public meetings and regular media coverage of this project, an incredible statement can be made regarding the Southeast Jessamine Rural Water Extensions proposal. Not one objection has been made, either formally or informally, to the team of organizations and individuals who have completed the preliminary work on this project. In fact the overwhelming support has come not only from residents of Jessamine County who stand to gain a safe potable water supply, but also from the existing customers of LSEWD who 21

will help subsidize the project with a $3.00 increase to the existing rate schedule. There is a clear and definite need for a safe potable water supply to be delivered to the residents of the project area. The project has the good fortune of a host of willing participants in the process. These include

Jessamine Fiscal Court, LSEWD, the Blue Grass Area District Development, the City of Nicholasville, Jessamine County Health Department, and individuals that have devoted their time and efforts in order to see the concept to become a reality. It is the culmination of these efforts that has made the concept of a safe potable water supply to areas residents a realistic and viable endeavor.

22

APPENDIX A Exhibits

Exhibit I

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Exhibit IV

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JESSAMINECOUNTY HEALTH DEPARTMENT 2 15 EAST MAPLE STREET NICHOIASVIUE, KY 40356-1203 MEDICAL (606) 6854149

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ENVlRONMENT'AL (606)885.23 10

June 17, 1996

...

....

County Judge Executive William Neal Cassity Jessamine County Courthouse Nicholasville, Ky. 40356 Re: b\'nter Supplies in Southeast Jessanline County

Dear Judge Cassity, As you know,we conducted a significant survey of private water supplies in southeastern Jessanline County. AI but one of 76 samples were taken in May and June of 1996. The results of that bacteriolo$d sampling are now in Iiand. 1 regret to repon to you that SO o w .76 samples (46 percent) shoived fecal or other bacieriological contamination. I alert you that drinking contaniinated warer can lead to illness

and sometimes death, especially arriony the young, the elderly, and those who have compromised immune systems. The present situation is a dangerous one.

I take this opponuniiy to encourage you, the Jessamine County Fiscal Court, and the LesingtonSouth Elkhorn Water District. to diligently pursue financial support that would permit the estension of an approved corninunity water system to Sourheast Jessamine County residents and thereby elliminate the present public health risk that this situation poses. This serious matter must be dealth with. Sincerely,

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&LL.&#$ Sharon L. fugate 8

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Public Health Director

I I 1 Protecting the Publih's Health and Environtnenr I

Water SampleTest Locations HUD CDBG Application

1 I I 1 I I 1. ID I 1 i I I I. I I

J U ~ Y15,1996 Jessamine County

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Scale in Miles Negative Test: No Contamination Positive Test: Contamination Proposed Standpipe Exisiting Sewage Treatment Plant ExistingWater Treatment Plant Proposed Water Line Water Line Project Sub-Area Minority Concentration Area Major Road Road Railroad

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Flood-Prone Areas

Exhibit V

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LEXINGTON SOUTH ELKHORN WATER DISTRICT FINANCIAL STATEMENTS AND AUDITORS' REPORT DECEMBER 3 1,1995

LEXINGTON SOUTH ELKHORN WATER DISTRICT NICHOLASVILLE, KENTUCKY

CONTENTS

Pane Independent Auditors' Report Balance Sheet

2-3

Statement of Receipts, Expenditures and Equities

4-5

Statement of Cash Flows Notes to the Financial Statements Independent Auditors' Report on Compliance Based on an Audit of General-Purpose Financial Statements Performed in Accordance With Government AuditinP Standards Independent Auditors' Report on the Internal Control Structure of Lexington South Elkhorn Water District as an Entity

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6 7-9

10

11 - 12

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KRING, COHEN, SAGESER & BESTEN. P S C CERTIFIED P U B L I C ACCOUNTANTS 400 OLD EAST

AUSTIN T. KRINO.JR.. CPA

VINE.

SUITE 202

ROBERT €3. COHEN. CPA

LEXMOTON. KENTUCKY 40507

bflCHAEL J. BPSTEN. CPA

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EUOENE M. SAOBSER In. CPA

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E. W N T RAY IIL CPA. CFP

FAX tBOBl331-0583

TAMMY D. FARLEY. CPA. C F P

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CHRISTOPHER W. RIDDLE. CPA

INDEPENDENT AUDITORS' REPORT

The Commissioners Lexington South Elkhorn Water District Nicholasville, Kentucky We have audited the accompanying general-purpose financial statements of Lexington South Elkhorn Water District as of and for the year ended December 3 1, 1995. These general-purpose financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are fiee of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of Lexington South Elkhorn Water District as of December 3 1, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

Lexington, Kentucky March 7, 1996

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LEXINGTON SOUTH ELKHORN WATER DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 3 1, 1995

-

Note A Summary of Sigtllficant Accounting Policies: A summary of the District’s sigmficant accounting policies consistently applied in the preparation of the financial statements follows:

-

Organization The Lexington-South Elkhorn Watei District, located in Jessamine County, Kentucky, sells water to its residential and commercial customers within its district in Jessamine County.

-

Basis of Accounting The District maintains its books on the accrual method of accounting, recognizing income from water sales as customers are billed. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabbies and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ fromthose estimates. All revenues and expenses are accounted for in finds described as follows:

-

Revenue Fund All gross revenues of the District are deposited into this find and subsequently distributed monthly to the other finds according to the following find descriptions. Bond and Interest Sinking Fund - For the retirement of bond and interest obligations, an amount equal to 1/12 of the amount of interest and principal becoming due on the next succeeding payment date is deposited monthly into this find. Reserve Fund - A bond reserve account of at least $12,000 is to be maintained for the 1971 Revenue Bond. Operations and Maintenance Fund - Deposits are to be made to meet the reasonable and necessary expenses of operating and maintaining the District for the current month. Depreciation Fund - Subject to the priority of the above-mentioned funds, deposits are to be made to maintain a find balance of at least $12,000. This b d is for the purpose of paying unusual or extraordinary maintenance, repairs, renewals and replacements. Construction Fund - This find is to be used to construct additions, extensions, and improvements other than those of the Depreciation Fund.

-

Depreciation Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives on a straight-line basis, with estimated sexvice lives of 40 years. Total depreciation expense for 1995 was $96,538. Continued

Page 7

I LEXINGTON SOUTH ELKHORN WATER DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 3 1, 1995

I I iI

Note A - Summary of Sigmficant Accounting Policies (Continued):

~I

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Amortization Amortization is provided for in amounts sufficient to relate bond costs to operations over the repayment periods of the bonds. Total amortization expense for 1995 was $2,206.

Income Taxes - The revenues of the District are exempt from federal and state income taxes. Statement of Cash Flows - For purposes of this statement, certificates of deposit are considered cash equivalents.

-

Concentration of Credit Risk The District provides credit in the normal course of business but does not require collatd or other security to support customer receivables other than customer deposits. Although the District is affected by economic conditions in the geographic area, management does not believe significant credit risk exists as ofDecember 31, 1995. Note B - Revenue Bonds:

In 1971 the District issued revenue bonds in the principal amount of $204,000 with an annual interest rate of 5%. These bonds are secured by the water supply and distribution system. Future obligations of bond principal and interest are as follows: Bond Number 8 5 - 91 92- 98 99 105 106 113 114 121 122 - 129 130 137 138 145 146 154 155 163 164 172 173 181 182 190 191 199 200 204

-

-

-

-

Continued

Year 1997 1998 1999 2000 200 1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Principal $

7,000

Interest $ 6,000

7,000 7,000 8,000 8,000 8,000 8,000 8,000 9,000 9,000 9,000 9,000 9,000 9,000 5.000

5,650 5,300 4,950 4,550 4,150 3,750 3,350 2,950 2,500 2,050 1,600 1,150 700 250

$120.000

$48.900

Page 8

LEXINGTON SOUTH ELKHORN WATER DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 3 1, 1995 Note B - Revenue Bonds (Continued): During 1993, the District expanded its distribution system financed principally by the Kentucky Infrastructure Authority (KIA). The KIA authorized an aggregate loan of $1,924,874, which included loan costs of $44,128 and a debt service reserve of $168,746. The expansion project was substantially completed during 1993-95 with total construction costs incurred of $1,634,296 through December 3 1, 1995, including capitalized interest of $41,366. Future obligations for repayment ofKIA bond principal and interest, with interest at varying rates of 4.00% to 5.75%, for this project are as follows: Year Principal Interest 1996 1997 1998 1999 2000 200 1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

S

62,856 66,164 69,472 71,126 74,434 79,397 82,705 86,013 92,347 97,383 102,42 1 109,137 114,174 120,890 127,606 134,322 142,717 151.112

31,784.276

$

93,543 90,897 87,979 84,8 15 81,392 77,62 1 73,527 69,182 64,521 59,480 54,097 48,33 1 42,119 35,432 28,287 20,757 12,792 4.344

$1.029.116

Future principal and interest for both bond obligations is summarized as follows:

Year 1996 1997 1998 1999 2000 2001 2005 2006 - 2010 2011 - 2013

-

Principal S

62,856 73,164 76,472 78,126 82,434 478,845 6 19,228 433.15 1

$1.904.276

Interest $

93,543 96,897 93,629 90,114 86,342 363,081 2 16,266 38.144

$1.078.016

Page 9

KRING, C O " ,

SAGESER & BESTEN.P S C

CERTlFIED PUBLIC ACCOUNTANTS AU8TM T.-0.

I&CPA

ROBERT 8.MI". CPA MICHAEL J . BESTEN. CPA E U G E N E M.SAGESER IIL CPA

E. HUNT RAY IR CPA.cpP

-

TAMMY D. PARLEY. CPA. CFP CHRISTOPHER W. RTDDLE. CPA

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS '

To the Board of Commissioners Lexington South Elkhorn Water District Nicholasville, Kentucky We have audited the general-purpose financial statements of the Lexington South Elkhorn Water District as of and for the year ended December 3 1, 1995, and have issued our report thereon dated March 7, 1996. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are fiee of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Lexington South Elkhorn Water District is the responsibility of the District's management. As part of obtaining reasonable assurance about whether the general-purpose financial statements are free of material misstatement, we performed tests of the District's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the general-purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. The results of our tests indicate that, with respect to the items tested, the Lexington South Elkhorn Water District complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the District had not complied, in all material respects, with those provisions.

I I I

This report is intended for the information of the commissioners, management, and the revenue bond lenders. However, this report is a matter of public record and its distribution is not limited. Lexington, Kentucky March 7, 1996

-,-,

& +I%h6,PSC Page 10

KRING, COHEN. SAGESER & BESTEN. PSC CERTIFIED PUBLIC ACCOUNTANTS AUSTIN T. -0.

4OOOLDEASTWNE

J&.CPA

SUITE 30%

ROBERT 8.OONEN. CPA MICHAEL I. BESTEN. CPA

LEXMOTON. KENTUCKY 40607

EUOENB. M.SAOESER l I L CPA

E. HUNT RAY lIL CPA CPP

-

(6061381-0541

FAX ( 8 0 8 1 331-0593

TAbfMY D.PARLEY. CPA.CB'P

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CIIR18TOPRER W. RIDDLE.CPA

INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE OF LEXINGTON SOUTH ELKHORN WATER DISTRICT AS AN ENTITY To the Board of Commissioners Lexington South Elkhorn Water District Nicholasville, Kentucky We have audited the general-purpose financial statements of the Lexington South Elkhorn Water District as of and for the year ended December 3 1, 1995, and have issued our report thereon dated March 7, 1996. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. The management of the District is responsible for establishing and maintaining an internal control structure. In fblfihg this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss &om unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of the general-purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to fbture periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

Page 11

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,e I I I I I P I I I I I

In planning and performing our audit of the financial statements of the Lexington South Elkhorn Water District for the year ended December 3 1, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the general-purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned finctions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of the commissioners, management, and the revenue bond lenders. However, this report is a matter of public record and its distribution is not limited.

Lexington, Kentucky March 7,1995

Page 12

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L M I N G E I N SOUTH ELKHORN WATER DISTRICI' FINANCIAL STATEMENTS AND

AUDITORS' REPORT

DECEMBER 31, 1994

....

LEXINGTON SOUTH ELKHORN WATER DISTRICT NICHOLASVILLE, KENTUCKY

CONTENTS

&l€s Independent Auditors' Report

1

Balance Sheet

2-3

Statement of Operations and Other Changes in Fund Balances

4-5

Statement of Cash Flows

.

Notes to the Financial Statements

7-9

Report on Compliance Based on an Audit of General-Purpose Financial Statements Performed in Accordance With Government Auditing Standards Report on the Internal Control Structure Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

6

10

11 -.12

KRING, COHEN, SAGESER & BESTEN,PSC CERTIFIED PUBLIC ACCOUNTANTS

I I

JOOOLDEAETVINE

AUSTIN T. KRPTO. J R . CPA

SUITE ew

ROBERT €3. COHEN. CPA hUCHAEL J. BESTEN.CPA

EUGENE

LEXINGTON. KENTUCEY 40507

M.SAOESER III.CPA

E."T RAY III. CPA.CFP

,

TAMMYD.FARLEY.CPA.CFP

-

CHRISTOPHER W. RIDDLE. CPA

INDEPENDENT AUDITORS' REPORT

The Commissioners Lexington South Elkhorn Water District Nicholasville, Kentucky We have audited the accompanying general-purpose financial statements of Lexington South Elkhorn Water District as of and for the year ended December 3 1,1994. These general-purpose financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of Lexington South Elkhorn Water District as of December 3 1,1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

I I I

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