WQ0040757_Permit (Modification)_20191011

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
Gregg Garret, Assistant Secretary
Clayton Properties Group, Inc.
221 Jonestown Road.
Winston-Salem, NC 27401
NORTH CAROLINA
Environmental Quality
October 11, 2019
Subject: Change of Ownership Approval
Permit No. WQ0040757
Sedge Hollow — Phase III
Forsyth County
Dear Mr. Garrett:
Division personnel have reviewed and approved your permit modification request for Permit No.
WQ0040757. This modification is to change ownership / name of ownership change from Shugart
Enterprised, LLC to Clayton Properties Group, Inc., and Clayton Properties Group, Inc. is now responsible
for the continued operation and maintenance of the subject wastewater collection extension. Our
database has been revised to reflect the ownership change.
The Permittee shall maintain compliance with its individual system -wide collection system permit for the
operation and maintenance of these facilities as required by 15A NCAC 2T .0400 and G.S 143-215.913. If
an individual permit is not required, the performance criteria as required by 15A NCAC 02T.0403 shall be
met. If you have any other questions regarding this matter please contact Justin Henderson, at
[phone] or [e-mail].
Sincerely,
EDocuS�igfned<by:
LJti l c. ,,Jcr
145B49E225C94EA...
for Linda Culpepper, Director
Division of Water Resources, NCDEQ
enclosures: ((WQ0040757)), 15A NCAC 02T.0403
cc: Brian Shugart -Shugart Enterprises, LLC- [e-mail]
Vince Townsend, P.E.-Green Mountain Engineering, PLLC- [e-mail]
Courtney Deriver, P.E., Utilities Director -City of Winston Salem- [e-mail]
Laserfiche Files (electronic copies)
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North Carolina Department of Environmental Quality I Division of Water Resources
Region Regional Office I Regional Address I City, State, Zip
Region Phone #

STATE OF NORTH CAROLINA
COUNTY OF Vd Q s Y-r 14 Permit No. O Q M 4-07 S 7
DEVELOPER'S OPERATIONAL AGREEMENT ri
This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this day of
OC66e-r- a-0 k °t , by and between the North Carolina Environmental Management
Commission, an agency of the State of North Carolina, hereinafter known as the COMMISSION; and
C Lq;(i-om 4e5pE12T1 LS Cx)Yzx kf, t NC , , a corporation/general partnership registered/licensed to do
business in the State of North Carolina, hereinafter known as the DEVELOPER.
WITNESSETH:
1. The DEVELOPER is the owner of the certain lands lying in FemgS$Mi+ County, upon
which it is erecting and will erect dwelling units and other improvements, said development to be known
as S E spC F aLJ f""ks f (hereinafter the Development).
2. The DEVELOPER desires, to construct a wastewater collection system with pumps, wastewater treatment
works, and/or disposal facilities (hereinafter Disposal System) to provide sanitary sewage disposal to serve
the Development on said lands.
3. The DEVELOPER has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct, maintain, and operate the Disposal System.
4. The DEVELOPER has created or shall create unit ownership in said dwellings units, other improvements
and lands through filing of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter
47C or 47F of the North Carolina General Statutes.
5. The DEVELOPER has caused`` to be formed or will cause to be formed at the time of filing of the
Declaration, _ S Eoo.Q w 904, � !V c , (hereinafter
Association), a non-profit corporation organized and existing under and by the virtue of the laws of the State
of North Carolina, for the purpose, among others, of handling the property, affairs and business of the
Development; of operating, maintaining, re -constructing and repairing the common elements of the lands
and improvements subject to unit ownership, including the Disposal System; and of collecting dues and
assessments to provide funds for such operation, maintenance, re -construction andrepair.
6. The COMMISSION desires to assure that the Disposal System of the Development is properly constructed,
maintained and operated in accordance with law and permit provisions in order to protect the quality of the
waters of the State and the public interest therein.
NOW, THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto, the COMMISSION and DEVELOPER do hereby mutually agree as follows:
1. The DEVELOPER shall construct the Disposal System in accordance with the permit and plans and
specifications hereafter issued and approved by the COMMISSION, and shall thereafter properly operate
and maintain such systems and facilities in accordance with applicable permit provisions andlaw.
2. The DEVELOPER shall not transfer ownership and/or control of the Disposal System to the Association
until construction has been completed in accordance with the permit and approved plans, and the staff of
the Division of Water Resources has inspected and approved of the facilities. In order to change the name
of the permit holder, the DEVELOPER must request that the permit be reissued to the Association. The
request must include a copy of the Association Bylaws andDeclaration.
3. The DEVELOPER shall not transfer, convey, assign or otherwise relinquish or release its responsibility for
the operation and maintenance of its Disposal System until a permit has been reissued to the DEVELOPER's
successor.
FORM: DEV 03-19 Page 1 of 2

4. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System and
appurtenances thereto are part of the common elements and shall thereafter be properly maintained and
operated in conformity with law and the provisions of the permit for construction, operation, repair, and
maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire wastewater
treatment, collection and disposal system as a common element which will receive the highest priority for
expenditures by the Association except for Federal, State, and local taxes and insurance.
5. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System will
be maintained out of the common expenses. In order to assure that there shall be funds readily available to
repair, maintain or construct the Disposal System, beyond the routine operation and maintenance expenses,
the Declaration and Association Bylaws shall provide that a fund be created out of the common expenses.
Such fund shall be separate from the routine maintenance funds allocated for the facility and shall be part
of the yearlybudget.
6. In the event the common expense allocation and separate fund are not adequate for the construction, repair,
and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for special
assessments to cover such necessary costs. There shall be no limit on the amount of such assessments, and
the Declaration and Bylaws shall provide that such special assessments can be made as necessary at any
time.
7. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development, the DEVELOPER shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary easements as the
governmental unit mayrequire as condition of accepting the Development's wastewater.
8. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the Association to enter into voluntary dissolution without having made adequate provision for the continued
proper maintenance, repair and operation of its Disposal System, the DEVELOPER shall provide in the
Association Bylaws that the Association shall not enter into voluntary dissolution without first having
transferred its said system and facilities to some person, corporation or other entity acceptable to and
approved by the COMMISSION by the issuance of apermit.
9. The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, 7, and 8 above shall be conditions of any
permit issued by the COMMISSION to the DEVELOPER for the construction, maintenance, repair and
operation of the Disposal System.
10. A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration is
filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of the
Association.
IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized
representative of the parties hereto on the day and year written as indicated by each of the parties named below:
FOR THE ENVIRONMENTAL C_ LA 1 ID &� t pro P E4M Es C &&Lp
ENT COMMISSION Name ofDEVEL PER
L uti 'T Stidu By: �Ct"gj
�
�'��
For Lmda u pepper (Signature)
Director, Division of Water Resources
Print Name and Title
10/11/2019
(Date)
to a
(Date
FORM: DEV 03-19 Page 2 of 2