WQ0041584_Operational Agreement_20200414

STATE OF NORTH CAROLINA
COUNTY OF LINCOLN Permit No. wQ0041584
DEVELOPER'S OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (d1) and entered into this 14th day of
April 2020 , by and between the North Carolina Environmental Management
Commission, an agency of the State of North Carolina, hereinafter known as the COMMISSION; and
LAKE NORMAN OWNER LP , a corporation/general partnership registered/licensed to do
business in the State of North Carolina, hereinafter known as the DEVELOPER.
WITNES SETH:
1. The DEVELOPER is the owner of the certain lands lying in LINCOLN County, upon
which it is erecting and will erect dwelling units and other improvements, said development to be known
as TRILOGY LAKE NORMAN - PARCEL E & K - PHASE 3 AND F2 (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, the (Unit Owners' Association) (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 11-17 Page 1 of 2

4. `Ihe.DEVELOPER shall. provide in the Declaration and Association Bylaws that. the Disposal. System and
appurtenances thereto: are pant of the common elements; and shall thereafter be properly maintained and
operated m conformity with law and the provisions of the permit for construction, operation, repair,. and
maintenance of the system and facilities. The Declaration and Bylaws shalt 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.I•ederal, State, and local taxes and;insurance..
5: The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal Systern. Will
be maintained out: ofthe common expenses. In ordet to assure that there shall be funds readily available to
repair, ma taro or ce.nstructthe Disposal System, beyond the routine operation and maintenance expenses,
the Declaration and. Association Bylaws shall provide that a fund be created out of the commiin expenses..
Such #"ucad shall be separate fm the routine maintenance funds allocateed for the facility and shall be part
of the yearly budget.
6. In the event the common expense allocation and separate fund are not adequate ;far the construction; repair,
and maintenance of Disposal System; the Declaration and Association Bylaws shall provide for special
assessmentsto cower such necessary :costs. There shall be no limit on the: amount of such ass. essments, 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 treatment and/or di Deal faeili rovided
ty p by any city.,.
town, Allage, county, 'water acid sewer authorities, or other unit:of government shall, hereinafter become
available to serve the I}evelapeot, tlae:DEVEL()PER shall take;such action as: is
:necessary to cause the
existing and fature wastewater of the Development to be .accepted and d°ischnirged into' said governmental
system, and shall convey or transfer as much of the. Disposal System and. such necessary easements :as the
governmental unit = r,ayrequire as condition of accepting the'Development's wastewater.
8. Recognizing that' it woad be contrary to the public interest and to; the ptiblic 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 iri: the
Association Bylaws that the Association shall .not enter into voluntary dissolution withoutrst.having
transferred its said systeru and facilities to some person; corporation Or other entity acceptable to and
approved: by the COMMISSION bythe issuance of apermit.:
9. The agreements set forth' in numbered paragraphs 1, 2, 3, 4, S, 6, 7.„ aria s .above slxal be conditions of any
permit. issued by the Cfl �iN ISSI{}I�I to the DE' tt PER for the constructions maintenances, repair and
operation of the`Disposal'Systerri.
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: Secretat'y of State ofNorth 'Carolina with the Articles oflncorpor. ion cit'tite
Association.
IN WITNESS WHEREOF, this agreement was executed in,duplicate originals by the duly authorized
representative of'the parties hereto tit .tlze day anal year written as indicated by each oft%e parties named below:
FOR THE ENVIRONMENTAL
MANAGEMENT COMMISSION name ofDEVE 1 .
DocuSigned by: -
Al r F 25
for inc 'i `e rth (Signature.)
e*a t"ector, Division of"Water f esourees _ f
Print Name and Title
4/14/2020
(Date) (Date)
FORM, DEV I 1-17 ,Page 2 of 2