MINUTES

STATE OF NORTH CAROLINA MUD CREEK WATER AND SEWER DISTRICT

COUNTY OF HENDERSON APRIL 17, 2002

The Mud Creek Water & Sewer District Board met for a regularly scheduled meeting at 9:00 a.m. in the Commissioners= Conference Room of the Henderson County Office Building at 100 North King Street, Hendersonville, North Carolina.

Those present were: Chairman Bill Moyer, Vice-Chair Marilyn Gordon, Commissioner Grady Hawkins, Commissioner Don Ward, Commissioner Charlie Messer, County Manager David E. Nicholson, County Attorney Angela S. Beeker, and Clerk to the Board Elizabeth W. Corn.

Also present was County Engineer Gary Tweed.

PROPOSED ABOLITION OF THE MUD CREEK WATER AND SEWER DISTRICT

Gary Tweed reminded the Board that certain of the provisions of the 12/20/2000 Agreement that the County entered into with the City of Hendersonville contemplated the abolition of the Mud Creek Water and Sewer District that was formed under Article 6 of Chapter 162A of the North Carolina General Statutes. On February 12, 2002 the Commissioners authorized Staff to begin working towards the abolition of that District. That abolition process is governed by NCGS 1652A-97.2, a copy of which was included in the agenda packet. North Carolina law allows an abolition of a water and sewer district if the Board of Commissioners can find that the need for the district no longer exists and there are no outstanding bonds or notes issued for projects within the District.

The Board took action on November 14, 2001 and on February 12, 2002 to approve the boundaries of a sewer service area in the Mud Creek drainage basin (AAmended Mud Creek Sewer Service Area@) which is to be served by the City of Hendersonville; however, the Board delayed the effective date of that service area. On February 12, 2002 the Commissioners directed Staff to proceed with the expansion of the Cane Creek Water and Sewer District. Once the Amended Mud Creek Sewer Service Area is made effective and the Cane Creek Water and Sewer District has been expanded, it is believed that there will no longer be any need for the Mud Creek Water and Sewer District. No outstanding bond or notes have ever been issued for projects within the Mud Creek Water and Sewer District. Thus, the requirements for abolition of the District can be met.

If approved, the abolition of the Mud Creek Water and Sewer District would be effective at midnight on June 30, 2002, which is just prior to the effective date of the expansion of the Cane Creek Water and Sewer District should it be approved.

NCGS 162A-87.2 does require the holding of a public hearing on the abolition of the District. Staff requests that the Board schedule such public hearing for June 3, 2002 at 7:00 p.m. Notice of the public hearing will have to be advertised as required by law. A draft Notice of Public Hearing was attached for review.

There are other related matters that must be addressed that include the following: (1) conveyance of the assets of the Mud Creek Water and Sewer District; (2) amendments to the Agreement with the City of Hendersonville; amendment to the Henderson County Sewer Ordinance; (3) expansion of the Cane Creek Water and Sewer District; and (4) adoption of the Amended Mud Creek Sewer Service Area with an effective date. Those items are either already underway or will be addressed as this project progresses.

The County Manager recommended that the Board schedule the public hearing on the proposed abolition of the Mud Creek Water and Sewer District for June 3, 2002 at 7:00 p.m.

Chairman Moyer made the motion to set the public hearing for Monday, June 3, 2002 at 7:00 p.m. All voted in favor and the motion carried.

MINUTES

Minutes were presented for the Board=s review and approval of the following meetings:

May 19, 1999

November 14, 2001

Commissioner Gordon made the motion to approve the minutes as presented. All voted in favor and the motion carried.

Elizabeth W. Corn, Clerk to the Board William L. Moyer, Chairman