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<br />Form FHA 442-31 UNITED STATES DEPARTMENT OF AGRICULTURE
<br />(Rev. 9-15-70) FARMERS HOME .ADMINISTRATION
<br />ASSOCIATION, WATER OR SEWER SYSTEM GRANT AGREEMENT
<br />THIS AGREEMENT dated ..S-Ptember _13 _ 19.--n-,between. Board of County
<br />. _ ____lrommissiolzer�., _Fadi an dive ...County ------ _
<br />a public body corporate organized and operating under..M �k1 PX_ �. a .- I�od _Statute s ,(19 7 5)
<br />(Authorizing State Statute)
<br />herein called "Grantee," and the United States of America acting through the Farmers Home Administration, Department of
<br />Agriculture, herein called "Grantor," WITNESSETH: _. .
<br />WHEREAS -
<br />Grantee has determined to. undertake a project of acquisition, construction, enlargement, or capital improvement of a (water)
<br />(sewer) system to serve the area under its juusdiction at an estimated cost of $ . 1x270,000___ __ , and has duly
<br />authorized the undertaking of such project.
<br />,Grantee is able to finance not more than $..842,500..__.___.__. __. of the development costs through revenues, charges,
<br />taxes or assessments, or funds otherwise available to Grantee resulting in a reasonable user charge.
<br />Said sum of $ has been committed to and by Grantee for such project. development costs.
<br />Grantor has agreed to grant to Grantee a sum not to exceed $ .._ __427,500 ____�� _ or. _T_33.66 - pent of said
<br />development costs, whichever is the lesser.
<br />NOW, THEREFORE, In consideration of said grant by Grantor to Grantee, to be made pursuant to section 306 (a) of the
<br />Consolidated Farmers_Home Administration Act of 1961 for the purpose only of defraying a part not to exceed
<br />percent of the development costs, as defined by applicable Farmers flame Administration instructions:
<br />Grantee agrees that Grantee will
<br />1. Cause said project to be constructed within the total sums available to it, including said grant, in accordance with
<br />the project plans and specifications and any necessary modifications thereof prepared by Grantee and approved by
<br />Grantor.
<br />2. Permit periodic inspection of the construction by a designated representative of Grantor during construction.
<br />3. Manage, operate and maintain the system, including this project if less than the whole of said system, continuously
<br />in an efficient and economical manner.
<br />4. Make the, services of said system available within its capacity to all persons in Grantee's service area without
<br />discrimination as to race, color, religion, or national origin, at reasonable charges, including assessments, taxes,
<br />or fees in accordance with a schedule of such charges, whether for one or more classes of service, adopted by
<br />resolution as may be modified from time to time by Grantee.
<br />The initial rate schedule must be approved by Grantor. Thereafter Graritee may make such modifications to the rate
<br />schedule as Grantee deems necessary to efficiently and economically provide for the financial requirements of the
<br />system as long as the rate schedule remains reasonable and nondiscriminatory.
<br />S. Adjust its operating costs and service charges from time to time to provide for adequate operation and maintenance,
<br />emergency repair reserves, obsolescence reserves, debt service and debt service reserves.
<br />6. Expand its system from time to time to meet reasonably anticipated growth or service requirements in the area within
<br />its jurisdiction.
<br />7. Not transfer or dispose of the system, or any part thereof, being constructed or improved with such grant funds without
<br />the written consent of Grantor, and not encumber the project for a period of five years from the date hereof without
<br />the written consent of the Grantor,
<br />8. Provide Grantor with such periodic reports as it may require and permit periodic inspection of its operations by a
<br />designated representative of the Grantor.
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<br />OCT 2 01977 '
<br />FHA 442-31 (Rev. 9-15-70)
<br />Position 2
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