WQ0019907_Renewal Application_20220128

Non -Discharge Branch Upload/Submittal Form
NORTH CAROLINA
EnWrvnmemfal Qualify
Version 2 - Revised June 23, 2020
Initial Review
Reviewer
Thornburg, Nathaniel D
Is this submittal an application? (Excluding additional information.)*
Yes No
Permit Number (IR) * WQ0019907
Applicant/Permittee Onslow Water and Sewer Authority
Applicant/Permittee Address 228 Georgetown Road, Jacksonville, NC 28540
Is the owner in BIMS? Yes No Is the facility in BIMS? Yes No
Owner Type County
Facility Name Holly Ridge WWTF
County Onslow
Fee Category
Is this a complete application?*
Yes No
Signature Authority
Signature Authority Title
Signature Authority Email
Document Type (if non -application)
Email Notifications
Does this need review by the hydrogeologist?*
Regional Office
CO Reviewer
Admin Reviewer
Yes No
Fee Amount $0
Complete App Date 01/28/2022
Below list any additional email address that need notification about a new project.
Email Address
Comments to be added to email notfication
Comments for Admin
Comments for RO

Comments for Reviewer
Comments for Applicant

Submittal Form
Project Contact Information
Please provide information on the person to be contacted by NDB Staff regarding electronic submittal, confirmation of receipt, and other correspondence.
Name* David M Mohr
Email Address*
[e-mail]
Project Information
Application/Document Type *
New (Fee Required)
Modification - Major (Fee Required)
Renewal with Major Modification (Fee
Required)
Annual Report
Additional Information
Other
Phone Number*
910-937-7521
Modification - Minor
Renewal
GW-59, NDMR, NDMLR, NDAR-1,
NDAR-2
Residual Annual Report
Change of Ownership
We no longer accept these monitoring reports through this portal. Please click on the link below and it will take you to the correct form.
https://edocs.deq.nc.gov/Forms/NonDischarge_Monitoring_Report
Permit Type: *
Permit Number: *
Applicant/Permittee *
Wastewater Irrigation
Other Wastewater
Closed -Loop Recycle
Single -Family Residence Wastewater
Irrigation
WQ0019907
Has Current Existing permit number
Onslow Water and Sewer Authority
Applicant/Permittee Address* 228 Georgetown Road, Jacksonville, NC 28540
Facility Name* Holly Ridge WWTF
Please provide comments/notes on your current submittal below.
Completed form WWIS-R 02-21 and supporting documentation.
High -Rate Infiltration
Reclaimed Water
Residuals
Other
At this time, paper copies are no longer required. If you have any questions about what is required, please contact Nathaniel Thornburg
at [e-mail].
Please attach all information required or requested for this submittal to be reviewed here. *
(Application Form, Engineering Plans, Specifications, Calculations, Etc.)
WQ0019907 Permit Renewal January 2022.pdf 26.37MB
Upload only 1 PDF document (less than 250 MB). Multiple documents must be combined into one PDF file unless file is larger
than upload limit.
By checking this box, I acknowledge that I understand the application will not be
accepted for pre -review until the fee (if required) has been received by the Non -
Discharge Branch. Application fees must be submitted by check or money order and
made payable to the North Carolina Department of Environmental Quality (NCDEQ).
I also confirm that the uploaded document is a single PDF with all parts of the
application in correct order (as specified by the application).
Mail payment to:
NCDEQ — Division of Water Resources
Attn: Non -Discharge Branch
1617 Mail Service Center
Raleigh, NC 27699-1617
Signature
t, 41✓it, 44 pool_ 725`

Submission Date 1/28/2022

ONWASA
January 28, 2022
Nathaniel D. Thornburg, Branch Chief
Water Quality Permitting Section, Non -Discharge Branch
NCDEQ — Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1617
Re: Permit Renewal — Wastewater Irrigation System
Town of Holly Ridge WWTP
Permit No. WQ0019907
Dear Mr. Thornburg,
Please find enclosed a completed form WWIS-R 02-21 and supporting documentation
requesting renewal of the existing operating permit for the above -referenced facility.
I apologize for the delay in getting this submitted for consideration; as with many other
water and wastewater utilities, it has been a challenge to conduct even the most routine activities
in light of the challenges of the pandemic and its associated restrictions on staff and operations.
If you have any questions or need additional information please feel free to contact me
directly at 910-937-7521 or dmohr(a�onwasa.com.
Sincerely,
David M. Mohr, P.E.
Chief Operations Officer
Onslow Water and Sewer Authority
Distributed via upload and email 01/28/2022
C: Seth Brown, Treatment Facilities Administrator
Kary Herndon, ORC
228 Georgetown Road • Jacksonville, NC28540 • Tel[phone] • Fax [phone] • www.onwasa.com

DWR
State of North Carolina
Department of Environmental Quality
Division of Water Resources
Division of Water Resources 15A NCAC 02T .0500 — WASTEWATER IRRIGATION SYSTEM — RENEWAL
FORM: WWIS-R 02-21
Pursuant to 15A NCAC 02T .0107(b), if the application does not include all required information and the necessary supporting
documentation, the application shall be returned. The application and attachments shall be prepared in accordance with 15A
NCAC 02T .0100, 15A NCAC 02T .0500, and Division Policies. For more information, visit the Water Quality Permitting
Section's Non -Discharge Branch website. The Applicant shall submit an electronic copy of the application and attachments
uploaded as a single Portable Document Format (PDF) file to https://edocs.deq.nc.gov/Forms/NonDischarge-Branch-Submittal-
Form-Ver2, or emailed to Non-Discharge.Reportsncdenr.gov if less than 20 megabytes (MB).
SECTION I — APPLICANT INFORMATION
1.
Applicant: Onslow Water and Sewer Authority (ONWASA)
2.
Permit No.: WQ0019907
3.
Signature authority: David M. Mohr, PE
Phone number: [phone] Office
Title: Chief Operations Officer
Email: [e-mail]
4.
Mailing address: 228 Georgetown Road
City: Jacksonville
State: NC Zip: 28540-
5.
Contact person: David M. Mohr, PE
Primary phone number: [phone] Office
Email: [e-mail]
Secondary phone number: (910) 455-722 Office
SECTION II — FACILITY INFORMATION
Physical address: 286 North Jenkins Street Extension
City: Holly Ridge
Treatment facility coordinates to the sixth decimal degree:
Latitude: 34.499444° Longitude: -77.536944°
County: Onslow
State: NC
Parcel No.: Multiple
Zip: 28445-
Method: Map interpretation by extraction
SECTION III — FLOW INFORMATION
1.
Permitted flow: 224673 GPD (The maximum allowable flow based on what has been permitted)
2.
As -built flow: 260626 GPD (The maximum allowable flow based on what has been constructed)
3.
Average flow: 183351 GPD (The average of all reported flows on the previous calendar year's NDMRs)
4.
Hydraulic capacity: 70.4 % (Divide the average flow in Item 3 by the As -built flow in Item 2)
5.
Wastewater composition: Domestic : 100 % Industrial: 0 % Stormwater: 0 %
SECTION IV — BILLING INFORMATION
. Billing address: 228 Georgetown Road
City: Jacksonville
State: NC Zip: 28540-
Verify the Applicant does not have any overdue annual fees:
https://deq. nc. gov/about/divisions/water-resources/water-resources-permits/wq-epavments
Pursuant to 15A NCAC 02T .0120(c), permits for renewing facilities shall not be granted if the Applicant or any affiliation has
an unpaid annual fee.
FORM: WWIS-R 02-21
Page 1 of 6

SECTION V — OPERATOR IN RESPONSIBLE CHARGE (ORC) INFORMATION
1. ORC: Kary Alexander Herndon
Mailing address: 228 Georgetown Road
City: Jacksonville
Phone number: [phone] Office
Grade: WW-3 Certification No.: 1009156
State: NC Zip: 28540-
Email: [e-mail]
2. Back -Up ORC: Mark Curtis Young
Mailing address: 228 Georgetown Road
City: Jacksonville
Phone number: [phone] Office
Grade: WW-4 Certification No.: 1001105
State: NC
Zip: 28540-
Email: [e-mail]
SECTION VI — OPEN -ATMOSPHERE STRUCTURES
1.
List all open -atmosphere treatment and storage structures associated with the renewing permit. Attach additional sheets if
necessary.
Type
Parcel No.
Volume (gal)
Liner Type
Freeboard (ft)
Latitude
Longitude
Treatment
Multiple
1,820,000
Unlined
2
34.500000°
-77.536111°
Storage
061808
13,300,000
Full, synthetic
2
34.509722°
-77.501111°
Select
Select
- . °
Select
Select
0
- 0
SECTION VII — RELATED PERMITS
1.
List all wastewater permits (i.e., sewer, collection system, NPDES, residuals) that have interactions with the renewing permit.
Attach additional sheets if necessary.
Permit Type
Permit No.
Relationship Type
Collection System
WQCS00249
Discharging collection system
Select
Select
Select
Select
Select
Select
SECTION VIII — MONITORING WELLS
1. List all groundwater monitoring wells associated with the renewing permit. Attach additional sheets if necessary.
Well Name
Parcel No.
Status
Gradient
Location
Latitude
Longitude
MW-1
061808
Active
Upgradient
Inside Review Boundary
34.515833°
-77.500555°
MW-2
061808
Active
Cross gradient
Inside Review Boundary
34.511111°
-77.495278°
MW-3
061808
Active
Downgradient
Inside Review Boundary
34.505833°
-77.496944°
MW-4
061808
Active
Downgradient
Inside Review Boundary
34.506111°
-77.501944°
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
FORM: WWIS-R 02-21
Page 2 of 6

SECTION IX - IRRIGATION FIELDS
1. List all irrigation fields associated with the renewing permit. Attach additional sheets if necessary.
Field
County
Parcel No.
Deeded Owner
Area
Cover Crop
Latitude
Longitude
1/1A
Onslow
061808
Town of Holly Ridge
9.82
Grass
34.515240°
-77.502399°
1/1B
Onslow
061808
Town of Holly Ridge
9.62
Grass
34.513864°
-77.501486°
1/1C
Onslow
061808
Town of Holly Ridge
8.07
Grass
34.513117°
-77.501547°
1/1D
Onslow
061808
Town of Holly Ridge
3.74
Grass
34.512088°
-77.500995°
2/2A-1
Onslow
061808
Town of Holly Ridge
8.78
Grass
34.508936°
-77.500775°
2/2A-2
Onslow
061808
Town of Holly Ridge
12.20
Grass
34.508358°
-77.500687°
2/2A-3
Onslow
061808
Town of Holly Ridge
11.66
Grass
34.507327°
-77.499024°
2/2B-1
Onslow
061808
Town of Holly Ridge
8.63
Grass
34.506634°
-77.499176°
2/2B-2
Onslow
061808
Town of Holly Ridge
5.84
Grass
34.506634°
-77.499176°
3/3A
Onslow
061808
Town of Holly Ridge
9.44
Grass
34.511579°
-77.496661°
3/3B
Onslow
061808
Town of Holly Ridge
11.79
Grass
34.509802°
-77.496684°
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
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0
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0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
°
0
Total Acreage:
99.59
FORM: WWIS-R 02-21
Page 3 of 6

ATTACHMENT A — SITE MAP
Was the facility originally permitted or had a major modification issued after September 1, 2006?
❑ Yes — Pursuant to 15A NCAC 02T .0105(d), submit a site map pursuant to the requirements in 15A NCAC 02T .0504(d). These
requirements are:
❑ A scaled map of the site with topographic contour intervals not exceeding 10 feet or 25 percent of total site relief and showing
all facility -related structures and fences within the wastewater treatment, storage, and irrigation areas.
❑ Soil mapping units shown on all irrigation sites.
❑ The location of all wells (including usage and construction details if available), streams (ephemeral, intermittent, and
perennial), springs, lakes, ponds, and other surface drainage features within 500 feet of all wastewater treatment, storage,
and irrigation sites.
❑ Delineation of the compliance and review boundaries per 15A NCAC 02L .0107 and .0108, and 15A NCAC 02T .0506(c)
if applicable.
❑ Setbacks as required by 15A NCAC 02T .0506.
❑ Site property boundaries within 500 feet of all wastewater treatment, storage, and irrigation sites.
❑ All habitable residences or places of public assembly within 500 feet of all treatment, storage, and irrigation sites.
® No — Skip Attachment A.
ATTACHMENT B — SIGNATURE AUTHORITY DELEGATION
Does the signature authority in Section I, Item 3 meet the requirements pursuant to 15A NCAC 02T .0106(b)?
® Yes — Skip Attachment B.
❑ No — Submit a delegation letter pursuant to 15A NCAC 02T .0106(c) authorizing the signature authority to sign.
ATTACHMENT C — FLOW REDUCTION
Does the existing permit include an approved flow reduction?
® Yes — Submit a copy of the flow reduction approval letter, as well as the measured monthly average amount of wastewater flow
contributed per unit for the 12 months prior to permit renewal. If any of these monthly averages are within 20% of the approved
flow reduction value, the Permittee shall provide a reevaluation of the reduced flow value pursuant to the requirements in 15A
NCAC 02T .0114(f).
El No — Skip Attachment C.
ATTACHMENT D — CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
Is the Applicant a Privately -Owned Public Utility?
❑ Yes — Pursuant to 15A NCAC 02T .01 15(a)(1), submit the Certificate of Public Convenience and Necessity from the North
Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise.
No — Skip Attachment D.
ATTACHMENT E — OPERATIONAL AGREEMENT
Is the Applicant a Home/Property Owners' Association or Developer of Lots to be Sold?
❑ Yes (Home/Property Owners' Association) — Pursuant to 15A NCAC 02T .0115(a)(2), submit an executed Operational Agreement
(FORM: HOA). Pursuant to 15A NCAC 02T .0115(c), if the applicant is a legally formed Homeowners' or Property Owner's
Association, submit a copy of the Articles of Incorporation, Declarations, and By-laws.
❑ Yes (Developer of Lots to be Sold) — Pursuant to 15A NCAC 02T .0115(a)(2), submit an executed Operational Agreement
(FORM: DEV). Pursuant to 15A NCAC 02T .0115(b), if the applicant is a developer of lots to be sold, submit a copy of the
Articles of Incorporation, Declarations, and By-laws.
® No — Skip Attachment E.
FORM: WWIS-R 02-21 Page 4 of 6

ATTACHMENT F — DEMONSTRATION OF FUTURE WASTEWATER TREATMENT CAPACITIES
Is the applicant a municipality, county, sanitary district, or public utility?
II1 Yes — Proceed to the next question.
❑ No — Skip Attachment F.
Does the hydraulic capacity in Section III, Item 4 exceed 70%?
I Yes (the hydraulic capacity is greater than 70%, but less than 80%) — Pursuant to 15A NCAC 02T .0118(1), prior to exceeding
80 percent of the system's permitted hydraulic capacity (based on the average flow during the last calendar year), the permittee
shall submit an engineering evaluation of their future wastewater treatment, utilization, and disposal needs. This evaluation shall
outline plans for meeting future wastewater treatment, utilization, or disposal needs by either expansion of the existing system,
elimination or reduction of extraneous flows, or water conservation and shall include the source of funding for the improvements.
If expansion is not proposed or is proposed for a later date, a justification shall be made that wastewater treatment needs will be
met based on past growth records and future growth projections, and as appropriate, shall include conservation plans or other
measures to achieve waste flow reductions.
❑ Yes (the hydraulic capacity greater than 80%) — Proceed to the next question.
❑ No — Skip Attachment F.
If answered Yes above, does the hydraulic capacity in Section III, Item 4 exceed 80%?
❑ Yes (the hydraulic capacity is greater than 80%) — Pursuant to 15A NCAC 02T .0118(2), prior to exceeding 90 percent of the
system's permitted hydraulic capacity (based on the average flow during the last calendar year), the permittee shall obtain all
permits needed for the expansion of the wastewater treatment, utilization, or disposal system and, if construction is needed,
submit final plans and specifications for expansion, including a construction schedule. If expansion is not proposed or is proposed
for a later date, a justification shall be made that wastewater treatment needs will be met based on past growth records and future
growth projections, and as appropriate, shall include conservation plans or other specific measures to achieve waste flow
reductions.
A No — Skip Attachment F.
ATTACHMENT G — EASEMENT, ENCROACHMENT, AND LEASE AGREEMENTS
Does the Permittee own all of the land associated with the wastewater collection, treatment, conveyance, and irrigation system?
❑ Yes — Skip Attachment G.
® No — Pursuant to 15A NCAC 02T .0116(c), provide a copy of all easements, lease agreements, and encroachment agreements
allowing the Permittee to operate and maintain the wastewater collection, treatment, conveyance, and irrigation system on
property not owned by the Permittee.
ATTACHMENT H — AFFILIATIONS
Are the Permittee's affiliations of record correct? Check affiliations.
❑ Yes — Skip Attachment H.
® No — Provide the corrected affiliations and their contact information.
ATTACHMENT I — COMPLIANCE SCHEDULES
Does the existing permit include any Compliance Schedules? (See Section I of the most recently issued permit)
® Yes — Submit documentation that the compliance schedules have been met.
❑ No — Skip Attachment I.
ATTACHMENT J — CIVIL PENALTIES AND OUTSTANDING VIOLATIONS
Does the Permittee have any existing civil penalties or outstanding violations?
❑ Yes (civil penalties) — Submit payment for the civil penalty, or proof of remission request.
❑ Yes (violations) — Submit a copy of your response to the Notice of Violation.
® No — Skip Attachment J.
FORM: WWIS-R 02-21 Page 5 of 6

ATTACHMENT K — INDUSTRIAL WASTEWATER
Does the wastewater composition in Section III, Item 5 include any industrial wastewater?
❑ Yes — Proceed to the next question.
® No — Skip Attachment K.
Has the nature of the industrial wastewater changed since the last permit issuance (i.e., changes in industrial process, introduction of
new materials or chemicals, etc.)?
❑ Yes — Provide a chemical analysis of the wastewater pursuant to the requirements in 15A NCAC 02T .0504(h). Provide an
overview of the manufacturing process; an inventory of all chemical and biological materials used in the manufacturing process;
and an overview of the cleaning and treatment methodology.
❑ No — Provide an overview of the manufacturing process; an inventory of all chemical and biological materials used in the
manufacturing process; and an overview of the cleaning and treatment methodology.
ATTACHMENT L — SETBACK WAIVERS
Does the existing permit include setback waivers?
❑ Yes — Pursuant to 15A NCAC 02T .0506(d), provide setbacks waivers that have been written, notarized, signed by all parties
involved, and recorded with the county Register of Deeds. Waivers involving the compliance boundary shall be in accordance
with 15A NCAC 02L .0107.
® No — Skip Attachment L.
APPLICANT'S CERTIFICATION
I, D AJ t p r' . M.o 14a. , pE attest that this application
(Signature authority's name as noted in Section I, Item 3)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that if all required parts of this
application package are not completed, and that if all required supporting information and attachments are not included, this
application package will be returned as incomplete. I further certify pursuant to 15A NCAC 02T .0120(b), that the applicant, or any
parent, subsidiary, or other affiliate of the applicant has: not been convicted of environmental crimes under; not previously abandoned
a wastewater treatment facility without properly closing the facility; not paid a civil penalty; not been compliant with any compliance
schedule in a permit, settlement agreement, or order; not paid an annual fee.
Note: The Applicant's Certification shall be signed pursuant to 15A NCAC 02T .0106(b). An alternate person may be delegated as
the signing official if a letter is provided pursuant to 15A NCAC 02T .0106(c). Pursuant to § 143-215.6A and § 143-215.6B, any
person who knowingly makes any false statement, representation, or certification in any application package shall be guilty of a Class
2 misdemeanor, which may include a fine not to exceed $10,000 as well as civil penalties up to $25,000 per violation.
Signature:
Date: ' //0V /24) ZZ
THE COMPLETED APPLICATION AND ATTACHMENTS SHALL BE SUBMITTED AS A SINGLE PDF FILE VIA:
Email:
Non-Discharge.Reports(u)ncdenr. gov
Laserfiche Upload:
https://edocs.deq.nc.gov/Form s/NonDischarge-Branch-
Submittal-Form-Vert
FORM: WWIS-R 02-21
Page 6 of 6

Updated facility description:
Onslow Water and Sewer Authority
Onslow County
FOR THE
operation of a 224,673 gallon per day (GPD) wastewater treatment and irrigation facility
consisting of the:
continued operation of a 260,626 GPD wastewater treatment facility consisting of: headworks
with a manual bar screen and grit chamber; an ultrasonic flow meter; a 1.82 million gallon (MG)
treatment lagoon with four aeration cells (Cell 1 has five 3 horsepower (hp) floating hybrid
mixer/aerators; Cell 2 has three 3 hp floating hybrid mixer/aerators; Cell 3 has two 3 hp floating
hybrid mixer/aerators; Cell 4 has one floating hybrid mixer/aerator) and a 0.30 MG settling cell;
a 22,400 gallon aerobic sludge digester with a 2 hp aerator and a 3 hp discharge pump; an effluent
pump station with two 450 gallon per minute (GPM) pumps; approximately 17,900 linear feet
(LF) of 8-inch force main; and all associated piping, valves, controls and appurtenances; and the
Continued operation of a 224,673 GPD wastewater irrigation facility consisting of: a 13.30 MG
storage lagoon (51 days storage); an irrigation pump station with two 700 GPM pumps and an
effluent flow meter; a 99.59-acre spray irrigation area with 11 fields; and all associated piping,
valves, controls, and appurtenances
to serve the Holly Ridge WWTP, with no discharge of wastes to surface waters, pursuant to the
application received , and in conformity with the project plans, specifications,
and other supporting data subsequently filed and approved by the Department of Environmental
Quality and considered a part of this permit.

ATTACHMENT A - SITE MAPS

WQ0019907 Site Map
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FIGURE 1- SITE MAP
1/27/2022, 5:02:27 PM
TOWN OF HOLLY RIDGE WWTP AND
WASTEWATER SURFACE IRRIGATION
County Centerlines
ONSLOW COUNTY
PERMIT NO. WQ0019907
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FIGURE 2 - TREATMENT FACILITY SITE
TOWN OF HOLLY RIDGE WWTP AND
WASTEWATER SURFACE IRRIGATION
ONSLOW COUNTY
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FIGURE 4 - SPRAY IRRIGATION TOPO MAP
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WASTEWATER SURFACE IRRIGATION
ONSLOW COUNTY
PERMIT NO. WQ0019907
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WASTEWATER SURFACE IRRIGATION
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PERMIT NO. WQ0019907

ATTACHMENT B — SIGNATURE AUTHORITY DELEGATION
N/A — Signature authority in place.
ATTACHMENT C — REDUCTION
Flow reduction approval for the Holly Ridge collection system is currently
on file with NCDEQ — DWR; copy requested but not available at the time
of this submittal.
ATTACHMENT D — CERTIFICATE OF PUBLIC CONVENIENCE
Not applicable to this facility.
ATTACHMENT E — OPERATIONAL AGREEMENT
Not applicable to this facility.

ATTACHMENT F — DEMONSTRATION OF FUTURE WASTEWATER
TREATMENT CAPACITIES
In May 2020 ONWASA (working with The Wooten Company, Raleigh Office)
completed a Capacity Evaluation Study for both the Holly Ridge WWTP
(WQ0019907) and the Summerhouse Wastewater Reclamation WWTP
(WQ0029945). This study evaluated both existing facilities, prepared flow
projections for a 20-year period, and provided multiple alternatives to address the
additional capacity required. The attached chart shows the results of the flow
projections for both existing and expanded future service areas. As a result of this
study, a contract was executed in January 2022 with the Wooten Company to
design and oversee construction of a new 1.0 MGD treatment facility that will
replace both the existing plants. A copy of the contract is attached, and the full
study is available upon request. The project will be funded through ONWASA's
fund balance and future bond sales. The new facility should be completed and
operational in roughly 30 months.
Until such time as the new plant is operational, ONWASA will be closely monitoring
the remaining available treatment capacity at both existing plants and
prioritizing/deferring new connections as appropriate.

OP-

STATE OF NORTH CAROLINA
COUNTY OF ONSLOW
AGREEMENT BETWEEN OWNER AND ENGINEER
THIS CONTRACT is made and entered into this the 6th day of January , 2022, by
and between the ONSLOW WATER AND SEWER AUTHORITY, a political subdivision of the
State of North Carolina, (hereinafter referred to as "OWNER") and THE WOOTEN COMPANY
(hereinafter referred to as "ENGINEER"). This Exhibit A incorporates by reference the Master
Consulting Agreement entered into by the Parties dated October 14, 2021. The Master
Consulting Agreement is hereby amended and supplemented as follows:
For the following Project: Providing Professional Engineering and related services necessary
for the design, bidding and construction of a new wastewater treatment plant for the Southeast
Service Area at the Holly Ridge WWTP spray field site.
EXHIBIT A — Scope of Services, dated December 13, 2021, is attached to, hereby incorporated
into, and made part of this Contract by reference ("the work"). Each reference to this Contract
shall be deemed to include all Exhibits. Any conflict between language in an Exhibit or Appendix
and language in the main body of this Contract shall be resolved in favor of the main body of this
Contract.
ARTICLE 1
ENGINEER'S RESPONSIBILITIES
1.1 ENGINEER'S SERVICES
1.1.1 The Engineer, Engineer's employees, and Engineer's consultants shall provide
services as outlined in Exhibit A — Scope of Services, in accordance with Articles 2
and 3 of this Agreement. Any work initiated by the Engineer prior to the execution of
an Agreement for Services will be at the Engineer's sole risk.
1.1.2 The Engineer shall serve as Owner's prime professional for the Project and shall
perform or furnish professional engineering and related services in all phases of the
project to which this Agreement applies.
1.1.3 The Engineer shall exercise the normal and customary due diligence in the
performance of the Services as is exercised by a professional serving under similar
circumstances. The staff and subcontracted professionals engaged by the Engineer
shall possess the experience, knowledge, and character necessary to qualify them to
perform the particular duties to which they are assigned. The Engineer may employ
such sub -consultants as Engineer deems necessary to assist in the performance or
furnishing of the services upon approval of such sub -consultant by the Owner.
1.1.4 The Engineer shall be responsible for the professional quality, technical accuracy,
timely completion, and appropriate coordination of all designs, drawings,
specifications, reports, and other services to be furnished under this Agreement.
Owner approval of Engineer work shall not relieve the Engineer of responsibility for
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the technical adequacy of the work. The Engineer shall, without additional
compensation, revise any materials prepared under this agreement if it is determined
that the Engineer is responsible for any errors or deficiencies.
1.1.5 The Engineer's services shall be performed as expeditiously as necessary for the
orderly progress of the work. The schedule for the performance of the Engineer's
services included in the Scope of Services shall not, except for reasonable cause, be
exceeded by the Engineer.
1.1.6 Engineer and Owner acknowledge that the Scope of Services described for the Project
does not delineate every detail and minor work task required to be performed by
Engineer to complete the work authorized by the Scope of Service. If during the
performance of the services authorized by this Agreement, the Engineer determines
that work should be performed to complete the project which is in the Engineer's
opinion outside the level of effort originally anticipated, whether or not the project's
Scope of Service identifies the work items, Engineer shall notify Owner's Project
Manager in writing within 30 days and wait for Owner approval before proceeding with
the work. If Engineer proceeds with said work without notifying the Owner, said work
shall be deemed to be within the original level of effort described in the individual
Project's Scope of Service. Notice to the Owner's Project Manager does not constitute
authorization or approval by the Owner to perform the work. The performance of work
by the Engineer outside the originally anticipated level of effort without prior written
Owner approval is at the Engineer's sole risk.
1.1.7 Upon mutual written agreement, the scope of services described in the Project's
Scope of Services may be modified upon negotiated additional scopes of services,
compensation, time of performance, and other matters related to the project. If the
Owner and Engineer cannot contractually agree, the Owner shall have the right to
immediately terminate negotiations at no cost to the Owner and to procure services
from another source.
ARTICLE 2
SCOPE OF ENGINEER'S BASIC SERVICES
2.1 PRELIMINARY DESIGN PHASE
2.1.1 The Engineer shall provide an evaluation of the project scope, schedule, and
construction budget requirements, each in terms of the other, subject to the limitations
outlined in Subparagraph 4.2.1, and shall review with the Owner alternative
approaches to design and construction of the project.
2.1.2 Based on the mutually agreed -upon project scope, schedule, and construction budget
requirements, the Engineer shall prepare, for approval by the Owner, Preliminary
Design Documents consisting of drawings and other documents illustrating the scale
and relationship of project components.
2.1.3 The Engineer shall submit to the Owner a preliminary estimate of Construction Cost
based on current area, volume, or other unit costs.
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2.2 FINAL DESIGN PHASE
2.2.1 Based on the approved Preliminary Design and any adjustments authorized by the
Owner in the project scope, schedule, or construction budget, the Engineer shall
prepare, for approval by the Owner, Final Design Documents consisting of drawings
and other documents to fix and describe the size and character of the project as to
structural, mechanical, and electrical systems, materials and such other elements as
may be appropriate.
2.2.2 The Engineer shall assist the Owner in connection with the Owner's responsibility for
filing documents required for the approval of governmental authorities having
jurisdiction over the Project.
2.2.3 The Engineer shall advise the Owner of any adjustments to the preliminary estimate
of Construction Cost.
2.3 CONSTRUCTION DOCUMENTS PHASE
2.3.1 Based on the approved Final Design and in the construction budget authorized by the
Owner, the Engineer shall prepare, for approval by the Owner, Construction
Documents consisting of Drawings and specifications detailing the requirements for
the construction of the Project.
2.3.2 The Engineer shall assist the Owner in the preparation of the necessary bidding and
contract documents and advise the Owner of any adjustments to previous preliminary
estimates of Construction Cost indicated by changes in requirements or general
market conditions.
2.3.3 The Engineer shall be responsible for and shall hold the Owner harmless for all claims
or damages due to the negligence of the Engineer or his employees in the preparation
of the Construction Documents.
2.4 BIDDING OR NEGOTIATION PHASE
2.4.1 The Engineer, following the Owner's approval of the Construction Documents and
the latest preliminary estimate of Construction Cost, shall assist the Owner in
obtaining bids or negotiated proposals and assist in awarding and preparing
contracts for construction as outlined in Exhibit A— Scope of Services.
2.5 CONSTRUCTION PHASE - ADMINISTRATION OF THE CONSTRUCTION
CONTRACT
2.5.1 The Engineer's responsibility to provide Engineering Services for the Construction
Phase under this Agreement commences with the award of the Contract for
Construction and terminates after the correction period described in the Contract for
Construction.
2.5.2 The Engineer shall provide administration of the Contract for Construction as set forth
below and in the associated General Conditions to the Contract which is incorporated
herein by reference.
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2.5.3 Duties, responsibilities, and limitations of authority of the Engineer shall not be
restricted, modified, or extended without the written agreement of the Owner and
Engineer.
2.5.4 The Engineer shall be a representative of and shall advise and consult with the Owner
(1) during construction until final payment to the Contractor is due, (2) from time to
time during and after the correction period described in the Contract for Construction.
The Engineer shall have authority to act on behalf of the Owner only to the extent
provided in this Agreement unless otherwise modified by written instrument.
2.5.5 The Engineer shall visit the site at regular and frequent intervals appropriate to the
stage of construction to inspect the progress and quality of the work completed and to
determine if the work is being performed in a manner indicating that the work, when
completed, will be in accordance with the Contract Documents. Concerning on -site
inspections as an Engineer, the Engineer shall keep the Owner informed of the
progress and quality of the work, and shall endeavor to guard the Owner against
defects and deficiencies in the work.
2.5.6 The Engineer shall not have control over or charge of and shall not be responsible for
construction means, methods, techniques, sequences, or procedures, or for safety
precautions and programs in connection with the work since these are solely the
Contractor's responsibility under the Contract for Construction. The Engineer shall not
be responsible for the Contractor's schedules or failure to carry out the work in
accordance with the Contract Documents unless the Engineer knows or should know
of problems with the work and fails or neglects to take action concerning those
problems. The Engineer shall not have control over or charge of acts or omissions of
the Contractor, Subcontractors, or their agents or employees, or any other persons
performing portions of the work.
2.5.7 The Engineer shall at all times have access to the work wherever it is in preparation
or progress.
2.5.8 Except as may otherwise be provided in the Contract Documents or when direct
communications have been specially authorized, the Owner and Contractor shall
communicate through the Engineer. Communications by and with the Engineer's
consultants shall always be through the Engineer.
2.5.9 Based on the Engineer's inspections and evaluations of the Contractor's Applications
for Payment, the Engineer shall review and certify the amounts due to the Contractor.
2.5.10 The Engineer's certification for payment shall constitute a representation to the Owner,
based on the Engineer's inspections at the site as provided in Subparagraph 2.6.5 and
on the data comprising the Contractor's application for Payment, that the work has
progressed to the point indicated and that the inspections of the construction, repairs,
or installations have been conducted with the degree of care and professional skill and
judgment ordinarily exercised by a member of his profession; and that to the best of
his knowledge and in the professional opinion of the Engineer, the contractor has
fulfilled the obligations of such plans, specifications, and contract. The Engineer's
certification for payment shall be signed and sealed by the Engineer and presented to
the Owner. The foregoing representations are subject to an evaluation of the work for
conformance with the Contract Documents upon Substantial Completion, to results of
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subsequent tests and inspections, to minor deviations from the Contract Documents
correctable before completion, and to specific qualifications expressed by the
Engineer. The issuance of a Certificate for Payment shall further constitute a
representation that the Contractor is entitled to payment in the amount certified.
2.5.11 The Engineer shall have authority to reject work that does not conform to the Contract
Documents. Whenever the Engineer considers it necessary or advisable for
implementation of the intent of the Contract Documents, the Engineer will have
authority to require additional inspection or testing of the work in accordance with the
provisions of the Contract Documents, whether or not such work is fabricated,
installed, or completed.
2.5.12 The Engineer shall review and approve or take other appropriate action upon
Contractor's submittals such as Shop Drawings, Product Data, and Samples. The
Engineer's action shall be taken with such reasonable promptness as to cause no
delay in the work or the construction of the Owner or separate contractors while
allowing sufficient time in the Engineer's professional judgment to permit adequate
review. Review of such submittals is not conducted to determine the accuracy and
completeness of other details such as dimensions and quantities or for substantiating
instructions for installation or performance of equipment or systems designed by the
Contractor, all of which remain the responsibility of the Contractor to the extent
required by the Contract Documents. The Engineer's review shall not constitute
approval of safety precautions or unless otherwise specifically stated by the Engineer,
of construction means, methods, techniques, sequences, or procedures. The
Engineer's approval of a specific item shall not indicate approval of an assembly of
which the item is a component. When professional certification of performance
characteristics of materials, systems, or equipment is required by the Contract
Documents, the Engineer shall be entitled to rely upon such certification to establish
that the materials, systems, or equipment will meet the performance criteria required
by the Contract Documents.
2.5.13 The Engineer shall prepare Change Orders and Field Orders, with supporting
documentation and data, for the Owner's approval and execution per the Contract
Documents, and may authorize minor changes in the work not involving an adjustment
in the Contract Sum or an extension of the Contract Time which are not inconsistent
with the intent of the Contract Documents.
2.5.14 The Engineer shall conduct inspections to determine the date or dates of Substantial
Completion and the date of final completion, shall receive and forward to the Owner
for the Owner's review and records written warranties and related documents required
by the Contract Documents and assembled by the Contractor and shall issue a final
Certificate for Payment upon compliance with the requirements of the Contract
Documents.
2.5.15 The Engineer shall interpret and decide matters concerning the performance of the
Owner and Contractor under the requirements of the Contract Documents at the
written request of either the Owner or Contractor. The Engineer's response to such
requests shall be made with reasonable promptness and within any time limits agreed
upon.
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2.5.16 Interpretations and decisions of the Engineer shall be consistent with the intent of and
reasonably inferable from the Contract Documents and shall be in writing or in the form
of drawings. When making such interpretations and initial decisions, the Engineer shall
endeavor to secure faithful performance by both Owner and Contractor, and shall not
show partiality to either.
2.5.17 The Engineer's decisions on matters relating to the aesthetic effect shall be final if
consistent with the intent expressed in the Contract Documents and agreed to by the
Owner.
2.5.18 The Engineer shall render written decisions within a reasonable time on all claims,
disputes, or other matters in question between the Owner and Contractor relating to
the execution or progress of the work as provided in the Contract Documents.
2.5.19 The Engineer's decisions on claims, disputes, or other matters, including those in
question between the Owner and Contractor, except for those relating to aesthetic
effect as provided in Subparagraph 2.5.17, shall be subject to the adjudication as
provided in this Agreement and in the Contract Documents.
2.6 CONSTRUCTION PHASE — RESIDENT PROJECT REPRESENTATIVE
(CONSTRUCTION OBSERVATION) DURING THE CONSTRUCTION CONTRACT
2.6.1 If more extensive representation at the site than is described in Subparagraph 2.1.5
is required, the Engineer shall provide one or more Project Representatives to assist
in carrying out such additional on -site responsibilities as set forth in Exhibit A —
Scope of Services.
2.6.2 Project Representatives shall be selected, employed, and directed by the Engineer,
and the Engineer shall be compensated as agreed by the Owner and Engineer. The
duties, responsibilities, and limitations of authority of Project Representatives shall
be as agreed by the parties.
ARTICLE 3
ADDITIONAL SERVICES
3.1 GENERAL
3.1.1 The services described in this Article 3 are not included as part of Basic Services
unless outlined in Exhibit A — Scope of Services. The services described in
Paragraphs 3.2.1 through 3.2.14, in addition to any listed in Exhibit A — Scope of
Services, shall only be provided if authorized or confirmed in writing by the Owner
after successful negotiation of fees for the specified additional service.
3.2 ADDITIONAL SERVICES
3.2.1 Making revisions in Drawings, Specifications, or other documents when such
revisions are required by the enactment or revision of codes, laws, or regulations
subsequent to the preparation of such documents.
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3.2.2 Providing consultation concerning replacement of work damaged by fire or other cause
during construction, and furnishing services required in connection with the
replacement of such work.
3.2.3 Providing services made necessary by the default of the Contractor, by major defects
or deficiencies in the work of the Contractor, or by the failure of performance of either
the Owner or Contractor under the Contract for Construction.
3.2.4 Providing services in connection with a legal proceeding except where the Engineer is
a party thereto.
3.2.5 Providing financial feasibility or other special studies.
3.2.6 Providing planning surveys, site evaluations, or comparative studies of prospective
sites.
3.2.7 Providing special surveys, environmental studies, and submissions required for
approvals of governmental authorities or others having jurisdiction over the project.
3.2.8 Providing services relative to future facilities, systems, and equipment.
3.2.9 Providing services to investigate existing conditions or facilities or to make measured
drawings thereof.
3.2.10 Providing coordination of construction performed by separate contractors or by the
Owner's own forces and coordination of services required in connection with
construction performed and equipment supplied by the Owner.
3.2.11 Providing detailed quantity surveys or inventories of material, equipment, and labor.
3.2.12 Providing analyses of owning and operating costs.
3.2.13 Making investigations, inventories of materials or equipment, or valuations and
detailed appraisals of existing facilities.
3.2.14 Providing assistance in the utilization of equipment or systems such as testing,
adjusting, and balancing, preparation of operation and maintenance manuals, training
personnel for operation and maintenance, and consultation during operation.
ARTICLE 4
CONSTRUCTION COST
4.1 DEFINITION
4.1.1 The Construction Cost shall be the total cost or estimated cost to the Owner of all
elements of the Project designed or specified by the Engineer. It is understood that
the Engineer's opinion of probable construction costs is based on assumed labor costs
and approximate quantities of material and equipment, and therefore is of a conditional
character. Therefore, Engineer cannot and does not guarantee the cost of work to be
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performed by others since market or bidding conditions can change at any time and
changes in the scope or quality of the project may affect estimates.
4.1.2 The Construction Cost shall include the cost at current market rates of labor and
materials furnished by the Owner and equipment designed, specified, selected, or
specially provided for by the Engineer, plus a reasonable allowance for the
Contractor's overhead and profit. In addition, a reasonable allowance for contingencies
shall be included for market conditions at the time of bidding and for changes in the
work during construction.
4.1.3 Construction Cost does not include the compensation of the Engineer and Engineer's
consultants, the costs of the land, rights -of -way, financing, or other costs which are
the responsibility of the Owner as provided in Article 5.
4.2 RESPONSIBILITY FOR CONSTRUCTION COST
4.2.1 If the Bidding or Negotiation Phase has not commenced within 180 days after the
Engineer submits the Construction Documents to the Owner, any Project budget or
fixed limit of Construction Cost shall be adjusted to reflect changes in the general level
of prices in the construction industry between the date of submission of the
Construction Documents to the Owner and the date on which proposals are sought.
4.2.2 If the construction bids exceed the construction cost estimate as prepared, pursuant
to paragraph 2.3.2 above:
a. The following services shall be performed at no additional cost to the Owner:
i. All in -scope redesign/project modification services are required to bring the
project construction cost back to within 110% or less of the construction cost
estimate without contingency. This does not include services associated with
a major change in project scope directed by the Owner. Should such a major
change occur in project scope, the lump sum fee shall be renegotiated.
ii. Services shall include assistance with re -bidding of the project as required to
bring its cost within the approved project budget; or
b. The Owner may decide to abandon the Project. Termination of the Project shall be
conducted in accordance with Paragraph 11.3.
ARTICLE 5
OWNER'S RESPONSIBILITIES
5.1 Owner shall provide Engineer with all criteria and full information as to Owner's
requirements for the Project, including design objectives and constraints, and any
budgetary limitations; and furnish copies of all design and construction standards
which Owner will require to be included in the Drawings and Specifications; and furnish
copies of Owner's standard forms, conditions, and related documents for Engineer to
include in the Bidding Documents, when applicable.
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5.2 The timely provision of all available information, data, reports, records, and maps to
which the Owner has access and which are needed by the Engineer for the
performance of the services.
5.3 Advise Engineer of the identity and scope of services of any independent consultants
employed by Owner to perform or furnish services in regard to the Project.
5.4 Owner will provide access to and obtain permission for the Engineer to enter upon
public or private lands as necessary for the Engineer to perform surveys, observations,
or other necessary functions.
5.5 Owner will respond within a reasonable time to the Engineer's requests for written
decisions or determinations pertaining to the subject of the Engineer's services so as
not to delay the performance of those services.
5.6 The Owner will give prompt written notice to the Engineer whenever the Owner
becomes aware of any event, occurrence, condition, or circumstance, which may
substantially affect the Engineer's performance of its services under this Agreement.
5.7 The Owner shall designate a representative authorized to act on the Owner's behalf
concerning the Project. The Owner or such authorized representative shall render
prompt decisions concerning documents submitted by the Engineer to avoid
unreasonable delay in the orderly and sequential progress of the Engineer's services.
5.8 The Owner shall furnish all legal, accounting, and insurance counseling services as
may be necessary at any time for the Project, including auditing services the Owner
may require verifying the Contractor's Applications for payment or to ascertain how or
for what purposes the Contractor has used the money paid by or on behalf of the
Owner.
5.9 Prompt notice shall be given by the Owner to the Engineer if the Owner becomes
aware of any fault or defect in the Project or nonconformance with the Contract
Documents.
ARTICLE 6
BASIS OF COMPENSATION
6.1 Owner agrees to pay Engineer as compensation for the performance of services as
described on the Basis of Compensation table included within the Scope of Services.
The hourly billing rates and reimbursable expenses for this agreement are outlined in
Exhibit B to this agreement and shall be used for maximum not -to -exceed
compensation.
6.2 The total fee shall not be exceeded without the written approval of the Owner. Any
additional professional services related to, but not within an individual scope of work
will be performed by the Engineer 'upon prior written request of Owner and for an
additional professional fee as the Owner and Engineer may agree.
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ARTICLE 7
USE OF DRAWINGS, SPECIFICATIONS, AND OTHER DOCUMENTS
7.1 The Drawings, Specifications, and other documents prepared by the Engineer for this
Project are for use solely for this Project. The Owner shall be the owner of these
documents and shall have all common law, statutory, and other reserved rights,
including the copyright. The use by the Owner or others on other projects of the
Engineer's Drawings, Specifications, or other documents shall void any warranties by
the Engineer for such use, and the Engineer shall have no liability for such use, except
by agreement in writing by the Engineer.
7.2 Submission or distribution of documents to meet official regulatory requirements or for
similar purposes in connection with the project is not to be construed as publication in
derogation of the Owner's reserved rights.
ARTICLE 8
INSURANCE
8.1 During the performance of the Services under this Agreement, the Engineer shall
maintain the minimum levels of insurance shown below and is responsible for ensuring
original certificates of such coverage are submitted to the Owner directly from the
insurance provider prior to the performance. Policies shall list Owner as additional
insured on all applicable policies. All policies shall be obtained from insurance
companies that are duly licensed in the State of North Carolina to issue insurance
policies for the limits and coverages so required, must cover the term of the contract,
and provide thirty (30) days advance written notice to the Owner in the event of
cancellation, expiration, or alteration.
1. General Liability Insurance, with a combined single limit of $1,000,000 for each
occurrence and $2,000,000 in the aggregate or as otherwise specified in the
addendum, whichever is greater.
2. Automobile Liability Insurance, with a combined single limit of $1,000,000 for each
person and $1,000,000 for each accident.
3. Workers' Compensation Insurance in accordance with statutory requirements and
Employers' Liability Insurance, with a limit of $500,000 for each occurrence.
4. Professional Liability/Errors & Omissions Insurance, with a limit of $1,000,000 per
occurrence/$1,000,000 annual aggregate.
8.2 The provisions of this Article shall survive the expiration or termination of this
Agreement.
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ARTICLE 9
PAYMENTS TO THE ENGINEER
9.1 DIRECT PERSONNEL EXPENSE
9.1.1 Direct Personnel Expense is defined as the direct salaries of the Engineer's personnel
engaged on the Project and the portion of the cost of their mandatory and customary
contributions and benefits, insurance, sick leave, holidays, vacations, pensions, and
similar contributions and benefits.
9.2 REIMBURSABLE EXPENSES
9.2. Reimbursable Expenses are in addition to compensation for Basic and Additional
Services and include expenses incurred by the Engineer and Engineer's employees
and consultants in the interest of the Project, as identified in the following Clauses.
a. Long-distance communications and fees paid for securing approval of authorities
having jurisdiction over the Project.
b. The expense of reproductions, postage, and handling of Drawings, Specifications,
and other documents.
c. If authorized in advance by the Owner, expense of overtime hours requiring higher
than regular rates.
d. The expense of renderings, models, and mock-ups requested by the Owner.
e. The expense of additional insurance coverage or limits, including professional
liability insurance, requested by the Owner in excess of that normally carried by
the Engineer and Engineer's consultants.
9.3 PAYMENTS ON ACCOUNT OF BASIC SERVICES
9.3.1 Payments for Basic Services shall be made and, where applicable, shall be in
proportion to services performed within each phase of service.
9.3.2 Engineer shall separately invoice for services rendered each month for each individual
project. Each project invoice shall reflect the percentage of work completed for the
billing period and completed to date, a detailed breakdown of hours worked, hourly
billing rates by each individual, and the expenses and description attributable to each
task of the project during the period. A supplemental invoice "report" shall be
submitted with each invoice describing the effort performed during the billing period in
support of the amount billed.
9.4 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES
Payments on account of the Engineer's Additional Services and for Reimbursable
Expenses shall be made monthly upon presentation of the Engineer's statement of
services rendered or expenses incurred. The total fee shall not be exceeded without
the written approval of the Owner. Any additional professional services related to but
not within an individual scope of work will be performed by the Engineer upon prior
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written request of Owner and for an additional professional fee as the Owner and
Engineer may agree.
9.5 PAYMENTS WITHHELD
9.5.1 In the event of a disputed or contested invoice, only that portion so contested will be
withheld from payment, and the undisputed portion will be paid. Service charges
and/or interest will not be accrued to any outstanding or overdue amounts.
9.5.2 No deductions shall be made from the Engineer's compensation on account of sums
withheld from payments to contractors.
9.6 ENGINEER'S ACCOUNTING RECORDS
Engineer shall maintain all records, documents, notes, and financial information
related to the performance of work in accordance with generally accepted accounting
principles and practices and require any and all subcontracted professionals to keep
records and accounts as may be necessary in order to record complete and correct
entries as to personnel hours charged to each individual project and any expenses for
which Engineer expects to be reimbursed. All books and records relative to individual
projects shall be available at no cost to Owner and at all reasonable times for
examination and audit by Owner and shall be kept for a period of three (3) years after
completion of all work pursuant to this Agreement or for a longer period of time as
stipulated by specific funding requirements. Incomplete or incorrect entries in such
books and records shall be grounds for the Owner's disallowance of any fees or
expenses based upon such entries.
9.7 TIME FOR PAYMENT
Unless otherwise stated herein, payments are due and payable thirty (30) days from
the date of the Engineer's invoice.
ARTICLE 10
DISPUTE RESOLUTION PROCEDURE
10.1 If a dispute arises out of or relates to this contract or the breach thereof, and if the
dispute cannot be settled through negotiation, the parties agree first to try to settle the
dispute by mediation administered by the American Arbitration Association under its
Construction Industry Mediation Procedures before resorting to litigation. If a party fails
to respond to a written request for mediation within 30 days after service or fails to
participate in any scheduled mediation conference, that party shall be deemed to have
waived its right to mediate the issue in dispute. Any written request for mediation shall
be made within 20 days from the date the dispute arose. Failure to make a written
request for mediation within said 20 days shall be deemed a waiver of its right to
mediate the issue in dispute.
10.2 The mediation session shall be private and shall be held in Onslow County, North
Carolina.
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10.3 If, as a result of mediation, a voluntary settlement is reached and the parties to the
dispute agree that such settlement shall be reduced to writing, the Mediator shall be
deemed appointed and constituted an arbitrator for the sole purpose of signing the
mediated settlement agreement. Such agreement shall be, and shall have the same
force and effect as an arbitration award, and judgment may be entered upon it in
accordance with applicable law in any court of competent jurisdiction.
10.4 If the disputed issue cannot be resolved in mediation or either party disagrees with the
results of the mediation, the parties may seek resolution in the General Court of Justice
in the County of Onslow and the State of North Carolina. If a party fails to comply in
strict accordance with the requirements of this Article, the non -complying party
specifically waives all of its rights provided hereunder, including its rights and remedies
under State law.
ARTICLE 11
TERMINATION, SUSPENSION. OR ABANDONMENT
11.1 This Agreement may be terminated by either party upon not less than seven days
written notice should the other party fail substantially to perform in accordance with
the terms of this Agreement through no fault of the party initiating the termination,
11.2 If the project is suspended by the Owner for more than 60 consecutive days, the
Engineer shall be compensated for services performed prior to notice of such
suspension.
11.3 This Agreement may be terminated by the Owner upon not less than seven days
written notice to the Engineer if the project is permanently abandoned. If the project is
abandoned by the Owner for more than 90 consecutive days, the Engineer may
terminate this Agreement by giving written notice.
11.4 In the event of termination not the fault of the Engineer, the Engineer shall be
compensated for services performed prior to termination, together with reimbursable
expenses then due. This shall be the exclusive remedy for termination.
11.5 Owner shall have no liability to the Engineer for any delay or damage caused the
Engineer due to the suspension of the work, or due to any other delay, interruption,
hindrance, or interference.
ARTICLE 12
OTHER CONDITIONS OR SERVICES
12.1 Indemnification. To the fullest extent permitted by laws and regulations, Engineer shall
indemnify and hold harmless the Owner and its officials, agents, and employees from
and against all claims, damages, losses, and expenses, direct, indirect, or
consequential (including but not limited to fees and charges of engineers or architects,
attorneys, and other professionals and costs related to court action) arising out of or
resulting from Engineer's negligence, gross negligence, recklessness, or
intentional acts in the performance of this Contract or the negligence, gross
negligence, recklessness, or intentional acts of its officials, employees, or
Southeast Service Area December 30, 2021
Wastewater Treatment Plant Page 13 of 16

contractors under this Contract or under contracts entered into by the Engineer in
connection with this Contract. This indemnification shall survive the termination of this
Contract.
12.2 This Agreement shall be governed by the law of the State of North Carolina. All actions
relating in any way to this Contract shall be brought in the General Court of Justice in
the County of Onslow and the State of North Carolina.
12.3 The Owner and Engineer, respectively, bind themselves, their partners, successors,
assigns and legal representatives to the other party to this Agreement and the
partners, successors, assigns and legal representatives of such other party with
respect to all covenants of this Agreement. Neither Owner nor Engineer shall assign
this Agreement without the written consent of the other.
12.4 This Agreement represents the entire and integrated agreement between the Owner
and Engineer and supersedes all prior negotiations, representations, or agreements,
either written or oral. This Agreement may be amended only by written instrument
signed by both Owner and Engineer.
12.5 Unless otherwise provided in this Agreement, the Engineer and Engineer's consultants
shall have no responsibility for the discovery, presence, handling, removal, or disposal
of or exposure of persons to hazardous materials in any form at the Project site,
including but not limited to asbestos, asbestos products, polychlorinated biphenyl
(PCB) or other toxic substances.
12.6 The Engineer shall have the right to include representations of the design of the
Project, including photographs of the exterior and interior, among the Engineer's
promotional and professional materials. The Engineer's materials shall not include the
Owner's confidential or proprietary information.
12.7 The bankruptcy of the Engineer shall not terminate this Contract until such time that it
is specifically rejected by the Trustee or Engineer in bankruptcy. During the election
period the Engineer has to assume or reject this Contract; the Engineer shall continue
to perform its work under the Contract.
12.8 In the event the Engineer in Bankruptcy assumes the Contract, the Engineer shall
apply progress payments to all of its unpaid obligations on this project before using
any of these monies for either administrative expense of the bankruptcy or as general
assets of the estate.
12.9 The subject headings of the paragraphs are included for purposes of convenience only
and shall not affect the construction or interpretation of any of its provisions. This
Agreement shall be deemed to have been drafted by both parties and no purposes of
interpretation shall be made to the contrary.
12.10 Interest of Members, Officers. or Employees of the Engineer. No member, officer, or
employee of the Engineer, or its agents who exercise any functions or responsibilities
concerning the project during his tenure or for one year thereafter, shall have any
financial interest, direct or indirect, in any construction contract or subcontract, or the
proceeds thereof, for work to be performed in connection with the project. Immediate
family members of said members, officers, employees, and officials are similarly
Southeast Service Area December 30, 2021
Wastewater Treatment Plant Page 14 of 16

barred from having any financial interest in the project. The Engineer shall incorporate,
or cause to be incorporated, in all such contracts or subcontracts, a provision
prohibiting such interest according to the purpose of this section.
12.11 Nondiscrimination Clause: No person in the United States shall on the ground of age,
race, color, national origin, gender, or disability be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under any program or activity
funded in whole or in part with funds available under this project.
12.12 Minority and Female Business Enterprise: Owner encourages participation from
Minority and Women Business Enterprise (MWBE).
12.13 Except as otherwise required or provided in the Scope of Services, the Engineer will
not meet or confer with any member of any federal, state, or local regulatory agency
concerning the services without obtaining the prior consent of the Owner.
12.14 IRAN DIVESTMENT ACT CERTIFICATION. The Engineer hereby certifies that
Engineer, and all sub -consultants, are not on the Iran Final Divestment List created by
the North Carolina State Treasurer pursuant to N.C.G.S. 143-6A-4. The engineer shall
not utilize any sub -consultant that is identified on the List.
Southeast Service Area December 30, 2021
Wastewater Treatment Plant Page 15 of 16

IN TESTIMONY WHEREOF, the parties hereto have caused these presents to be signed in its name
by its authorized representatives and their seals to be hereto affixed, acting under and by the
authority in them vested, have hereunto set their hands and seals, the day and year first written
above.
ENGINEER
By: Date: l./6o �Z49ZZ
W. Brian Johnson, PE
Vice President/Director of Engineering Services
ONSLOW WATER AND SEWER AUTHORITY
By:
f udsd (Ian 6, 2022 22:12 EST)
Jeffrey L. Hudson
CEO Clerk to the Board
Jan 6, 2022
Date:
ATTEST:
,laaet H. Casteen
kotary Public
(=
ATTEST:
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``PSBR 6 SEW•F�•v
yam:•Gj
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of SEAL
. y�THCAF���aP,
Heather Norris
(SEAL)
This instrument has been pre -audited in the manner required by the Local Government Budget and
Fiscal Control Act.
By: r /6i7' Date: Jan 6, 2022
Tiffany Riggs
CFO
Southeast Service Area December 30, 2021
Wastewater Treatment Plant Page 16 of 16

EXHIBIT A
SCOPE OF SERVICES

TASK ORDER No. 2
Project Title: Southeast Service Area Wastewater Treatment Plant
Consultant Project: No. 2896-AN
Project Description
After completion of a Collection System Evaluation for Marine Corps Base Camp LeJeune (MCBCL)
under a previous Task Order (17A), and the inability of MCBCL to accept the anticipated flow volume
from both the Owner's Southeast and Swansboro Service Areas, construction of a new wastewater
treatment plant (WWTP) and effluent disposal via infiltration basins was authorized by the Owner's
Board of Directors on October 7, 2021. This alternative includes the construction of a new 1.0 mgd
wastewater treatment plant at the existing Holly Ridge spray irrigation site. This facility will replace
both the Holly Ridge WWTP and the Summerhouse WWTP and each existing facility will then be
decommissioned. The existing spray irrigation system will be converted to an infiltration basin system
for effluent disposal. Conversion of the spray irrigation system to infiltration basins requires that the
treated effluent must meet the effluent quality standards for Total Nitrogen of 7 mg/I and for Total
Phosphorous of 3 mg/I. This level of effluent quality will require a minimum of a three -stage biological
nutrient removal (BNR) process to be implemented at the new treatment facility.
This project is anticipated to include the following improvements, depending on the treatment system
selected:
• Headworks with mechanical screening and grit removal
• 1.0 MG equalization basin
• Dual train, activated sludge treatment basins with biological nutrient removal (BNR) capability
• Administrative/lab building
• Maintenance/storage building
• Chemical feed and storage system
• Effluent filters
• Ultraviolet (UV) disinfection system
• Aerobic sludge stabilization and storage basins
• Sludge loading station
• Effluent pump station
• Site work, yard piping, electrical work, SCADA, and associated appurtenances.
This Task Order includes only the services necessary for design, permitting, and construction
administration/observation of the new wastewater treatment plant at the existing Holly Ridge spray
irrigation wastewater disposal site. Design, permitting, and construction administration/observation
services for infrastructure to transmit flow from the Holly Ridge WWTP and Summerhouse WWTP to
the new wastewater treatment plant is not included within this Task Order. Design, bidding and
construction administration/observation services for construction of the effluent disposal system
(infiltration basins) is also not included within this task order.
Scope of Services
The Engineer will provide Design, Permitting, Bidding, Construction Contract Administration,
Construction Observation, and Other Services as detailed below.
December 13, 2021 Page 1 of 7

DESIGN SERVICES
(1) Hold such conferences with representatives of the Owner as may be necessary to
obtain data for developing the design project. Project budget is based on up to six (6)
meetings during the design phase. Meetings will include both in -person and virtual
events as appropriate to the items being discussed.
(2) Review historic flow and water quality data for both treatment plants, along with
previously prepared future flow projections for the Southeast Service Area, in order to
establish the influent wastewater characteristics and design basis for the new plant.
(3) Utilizing the information gathered in Item 2, the Engineer will evaluate up to three
biological treatment systems suitable for the anticipated flow, wastewater
characteristics and effluent quality required for disposal through infiltration basins. In
addition to flow and quality, consideration should also be given to treatment systems
that have a high degree of pre -fabrication, are readily expandable for future flows and
have the ability to be completed under an accelerated construction schedule. At the
request of the Owner, one of the systems to be evaluated shall be the Omnipac
Sequencing Batch Reactor (SBR) from Evoqua Water Technologies. Other treatment
technologies to be evaluated include membrane bioreactor (MBR) and conventional
activated sludge processes.
(4) Prepare a Technical Memorandum summarizing the results of Items 2 and 3, above,
meet with the Owner to discuss this document, and provide a recommendation on the
treatment process/system to be utilized on this project. This meeting shall be in
addition to the meetings stipulated in Item 1.
(5) Based on acceptance of the Technical Memorandum and the recommended
treatment system by the Owner, the Engineer shall prepare a Project Design
Summary Report (PDSR) that includes the following:
• Mass balance and hydraulic profile.
• Design criteria for unit processes and potential equipment sources.
• Opinion of Probably Construction Cost and project schedule.
• List of permits required and estimated timeframe for review/approval.
• Basic drawings necessary to convey the overall site plan, the hydraulic profile,
process flow, and the location of all buildings and equipment in relation to
existing site features.
(6) Upon review and acceptance of the PDSR, prepare and furnish three (3) hard copies
and one (1) electronic copy (as a pdf) of the PDSR to the Owner
(7) Based on the accepted PDSR, prepare documents (drawings and specifications) as
necessary for construction of the project, and prepare all documents necessary for
the taking of bids and the letting of contracts for the proposed work. It is understood
and agreed that the Engineer shall utilize the Owner's standard format construction
contract documents, provisions for reimbursement for printing, binding, mailing, and
other costs incidental to issuing of said contract plans, specifications, and documents.
It is anticipated that one contract plans, and specifications package will be prepared
for the WWTP work.
(8) Conduct geotechnical investigations necessary for the new wastewater treatment
plant. Investigations will evaluate subsurface conditions including field explorations
(borings), laboratory testing, analysis, and formal report.
(9) Conduct topographic survey, wetlands delineations and any other site investigations
necessary for design and permitting of the project.
(10) Submit design drawings and an opinion of probable construction cost for Owner
review and approval at 30% and 60% complete. Submit design drawings, a draft
Project Manual and an opinion of probable construction cost at the Permit and Quality
Control Review (90% complete).
December 13, 2021 Page 2 of 7

(11) Prepare revised estimates of the construction costs based upon the final plans and
specifications.
(12) Prepare and submit permit applications for approval of the plans and specifications
proposed to the following regulatory agencies:
Division of Water Resources (DWR), Division of Mining and Land Quality
(DEMLR), and Division of Coastal Management (CAMA),
BIDDING AND AWARD SERVICES
(1) Assist the Owner in the advertising for bids.
(2) Prepare and distribute copies of the bidding documents as requested by contractors,
material suppliers, and other interested parties.
(3) Prepare and distribute as may be required, written Addenda amending the bidding
documents.
(4) Conduct a pre -bid conference at the location designated by the Owner. Minutes will
be kept and distributed to all plan holders in an Addendum.
(5) Assist the Owner in the receiving of bids, tabulate same for ready comparison, collect
required data from Low Bidder and provide to Owner. Issue recommendations of
award and assist in preparation of documents necessary for contract approval by
Owner's Board of Directors.
(6) After award of contract(s), the Engineer will prepare the contract documents for
execution by the Contractor(s) and the Owner.
CONSTRUCTION CONTRACT ADMINISTRATION
(1) Prior to the start of construction, the Engineer will prepare an agenda and conduct a
preconstruction conference.
(2) Review and approve, for conformance with the design concept, any necessary shop
and working drawings furnished by contractors as required by the construction
contract. Furnish the Owner with a complete bound set of shop drawings upon
completion of construction.
(3) Interpret the intent of the drawings and specifications to protect the Owner against
defects and deficiencies in construction on the part of the contractors. The Engineer
does not, however, guarantee the performance by any contractor.
(4) Establish baselines for locating the main components to be constructed. The
contractor will be responsible for providing any day-to-day construction staking that
may be required.
(5) Provide general Engineering review of the work of the contractor as construction
progresses and hold monthly progress conferences to ascertain that the contractor is
conforming to the design concept and construction schedule.
(6) Cooperate and work closely with the Owner and appropriate regulatory agencies
during construction to help ensure compliance with permit requirements.
(7) Review the contractor's applications for progress and final payment, and when
approved, submit same to the Owner for further processing.
(8) As necessary, review contractor -requested change orders and recommend approval
or denial to the Owner. If approved by the Owner, prepare change orders and revise
the contract documents for approval by the Owner and others on a timely basis.
(9) Perform substantial and final completion walk-throughs with Owner and Contractor,
complete construction contract closeout documentation, submit necessary
certifications to Federal/State agencies, and prepare final partial payment request for
Owner to close out the project with the Contractor.
(10) The Engineer will provide the Owner with two (2) sets of prints and a CD containing
the pdf copy of the record drawings. Such drawings will be based upon construction
December 13, 2021 Page 3 of 7

records provided by the contractor during construction, the as -built force main survey
and reviewed by the resident observer.
(11) Construction Administration period for this project is based on a 12-month
construction schedule.
CONSTRUCTION OBSERVATION
(1) After award of the contract(s), the Engineer will provide resident observation of the
construction on the project during periods of significant construction work being
performed and at other times will provide periodic observation of the work as
appropriate to the state of construction. The Project Engineer will make visits to the
job site on a full-time basis to observe the progress of the work and consult with the
Owner and the observer. Observation is based on a 12-month construction schedule.
(2) Engineer's observer shall observe materials and finished workmanship, check all
layouts of work, keep the necessary or required records of inspection, review
estimates for payment to contractors and make reports to the project Engineer, and
provide liaison between the Engineer and the Owner.
(3) Engineer will submit observation reports to the Owner on a regular basis.
(4) Engineer will make a final observation of all construction and provide a written
Recommendation of Final Acceptance to the Owner and the required state agencies.
COMMISSIONING
During Construction Observation, provide commissioning services prior to start-up as follows:
(1) Review and approve operation of installed system components prior to start-up of the
treatment subsystem.
(2) As needed, provide general Engineering services to correct system component
deficiencies that would perform acceptably in a slightly modified configuration to meet
process objectives.
(3) The Project Engineer will make visits to the job site periodically to observe the
progress of the work and consult with the Owner and the observer.
START-UP SERVICES
Provision of the following start-up services for the first year of operation:
(1) Assist the Owner in placing the system into operation and troubleshoot process
performance issues should they arise.
(2) Review and approve process control and monitoring interfaces of the system. Initiate
optimization to maximize efficiency of the system at start-up and provide an approach
for future optimization as plant conditions change.
(3) Provide Technical assistance to the Owner in resolving construction and equipment
warranty work.
TRAINING
The approach to operator training spans several phases of the project as follows:
(1) Provide Overview training of new processes during Commissioning activities
(BEFORE they are put into service). Review component operation and maintenance
to provide familiarity to operations staff and encourage additional questions to be
addressed in subsequent training.
December 13, 2021 Page 4 of 7

(2) Provide systems training during Start-up activities to reinforce previously provided
training while also addressing or clarifying items identified during Overview training.
(3) Assist Owner with obtaining required Continuing Education Units (CEUs) for
operations staff during each calendar year of construction and start-up.
(4) Conduct Operator orientation and training in use of the O&M Manual and revisions to
the manual based upon actual operating experience.
O&M MANUAL
The Engineer shall prepare a comprehensive Operation and Maintenance Manual, outlining
the major process components, maintenance schedules and all other operational
requirements for the wastewater treatment plant. A draft version shall be submitted to the
Owner for review and comment, and the Engineer shall provide three (3) hard copies plus an
electronic copy (pdf) copy of the final document to the Owner.
ADDITIONAL SERVICES
In addition to the foregoing services being performed, the following services may be
provided upon prior written authorization of the Owner.
(1) Provide Level "A" or "B" Subsurface Engineering Utility (SUE) services through the
project corridor or critical areas within the corridor. Level "A" shall be paid by each
locate and Level "B" shall be paid by the linear foot surveyed. All Level "C" SUE
services are provided as part of the Basic Services of the contract as stated under
above in the Design Services.
(2) Prepare Storm Water Management plan.
(3) Prepare redesigns for the Owner after Final Plans and Specifications have been
accepted by the Owner.
(4) Appear before courts or boards on matters of litigation or hearings related to the
project.
(5) Design other additional utilities improvements not included in the original scope of
services.
(6) Conduct additional work or extended services during construction due to the fault of
the Contractor or due to the overrun in time for construction.
SERVICES PROVIDED BY THE OWNER
(1) Designate a person to act as the Owner's representative with respect to the work to
be performed under the Agreement. Such person shall have complete authority to
transmit instructions, receive information, interpret, and define the Owner policies.
(2) Pay all permit and application fees required for the project approval and construction.
(3) Assist the Engineer by placing at his disposal all available information pertinent to the
projects as may be required by the Engineer.
(4) Make all provisions necessary for the Engineer to enter upon public and private
property as required to perform his services.
(5) Examine all sketches, drawings, specifications, proposals, and other documents
presented by the Engineer, obtaining advice of an attorney, insurance counselor, and
other consultants as the Owner deems appropriate for such examination.
(6) Provide frequent observation of the project in order to apprise the Engineer of specific
matters relating to the project that would foster good relations among all parties
involved as well as to allow work to progress in an orderly manner.
(7) Give prompt written notice to the Engineer whenever the Owner observes or otherwise
becomes aware of any defect in the project or changed circumstances.
(8) Furnish the Engineer in a timely manner with copies of pertinent correspondence
relating to the project which would not otherwise have been delivered to the Engineer.
December 13, 2021 Page 5 of 7

(9) Bear all cost of incidentals for the compliance with the requirements of this Article and
the foregoing Article entitled "Additional Services" provided such are approved by the
Owner in writing prior to execution.
(10) Provide E-Verify Affidavit Document for Engineer's execution.
Project Schedule:
The Engineer will commence work on or as soon as practicable after the date of the execution of this
Task Order and receipt of a written Notice to Proceed (NTP). All work as set forth in the Scope of
Services shall be completed as shown below:
• Complete the design engineering services described above by July 1, 2022. Estimated
construction completion and plant operational by third quarter 2024.
Basis of Compensation
Phase
No.
Phase
Description
Fee
Basis of
Compensation
Lump Sum
Task 1
Design Services
$ 578,100
Task 2
Bidding and Award Services
$ 11,700
Lump Sum
Task 3
Construction Contract Administration
$ 134,500
I Lump Sum
Task 4
Construction Observation
$ 257,500
Hourly, not to
Exceed
Task 5
Start Up
Services/Commissioning/Training
$47,300
Lump Sum
Task 6
O&M Manual Preparation
$ 20,700
Lump Sum
Total Fee
$ 1,049,800
Responsibilities of the Engineer
It is agreed that the Engineer will have the following responsibilities under this project:
a) Engineer shall perform or furnish professional engineering and related services in all phases
of the Project to which this Task Order applies. Engineer shall serve as Owner's prime
professional for the Project. Engineer may employ such sub -consultants as Engineer deems
necessary to assist in the performance or furnishing of the services, Engineer shall not be
required to employ any sub -consultant unacceptable to Engineer.
b) Engineer shall be responsible for the technical accuracy of its services and documents
resulting therefrom, and Owner shall not be responsible for discovering deficiencies therein.
Engineer shall correct such deficiencies without additional compensation, except to the extent
such action is directly attributable to deficiencies in Owner -furnished information.
c) Engineer shall comply with applicable laws and regulations, and Owner -mandated standards.
This Task Order is based on these requirements as of its effective date. Changes to these
requirements after the effective date of this Agreement may be the basis for modifications to
Owner's responsibilities or to the scope, schedule, and compensation for Engineer's services.
d) Engineer shall not be required to sign any documents, no matter by whom requested, that will
result in the Engineer's having to certify, guarantee or warrant the existence of conditions
whose existence Engineer cannot ascertain. Owner agrees not to make resolution of any
December 13, 2021 Page 6 of 7

dispute with Engineer or payment of any amount due to Engineer in any way contingent upon
Engineer's signing any such certification.
Responsibilities of the Owner
It is agreed that the Owner will have the following responsibilities under this project:
a) Provide Engineer with all criteria and full information as to Owner's requirements for the
Project, including design objectives and constraints, space, capacity and performance
requirements, flexibility and expandability, and any budgetary limitations; and furnish copies
of all design and construction standards which Owner will require to be included in the
Drawings and Specifications; and furnish copies of Owner's standard forms, conditions and
related documents for Engineer to include in the Bidding Documents, when applicable.
b) The timely provision of all available information, data, reports, records, and maps to which
the Owner has access and which are needed by the Engineer for the performance of the
services provided herein.
c) Providing assistance and cooperation for the Engineer in obtaining any other needed material
which the Owner does not have in its possession.
d) Making available the services of the Owner as may be necessary to obtain information as
needed to perform the work program set forth in the Scope of Services.
e) The designation of a single representative who will be authorized to make necessary
decisions required on behalf of the Owner and will serve to provide the necessary direction
and coordination for the project.
Owner's Representative — David Mohr
Engineer's Representative — Charles Davis
f) Advise the Engineer of the identity and scope of services of any independent consultants
employed by Owner to perform or furnish services regarding the Project, including, but not
limited to, cost estimating, project peer review, value engineering and constructability review.
Miscellaneous Provisions
Regulatory matters: Except as otherwise required or provided in the Scope of Services, Engineer
will not meet or confer with any member of any federal, state, or local regulatory agency concerning
the services without obtaining the prior consent of Owner.
December 13, 2021 Page 7 of 7

EXHIBIT B
RATE SCHEDULE

Wooten
SCHEDULE OF FEES
Hourly Rates for Wage Categories
Hourly
Wane Category Billing Rate
Engineer I $ 108
Engineer II $ 137
Engineer III $ 163
Engineer IV $ 194
Engineer V $ 235
Architect II $ 141
Designer I $ 75
Designer II $ 95
Designer l!! $ 117
Designer IV $ 142
Construction Admin I $ 112
Construction Admin II $ 170
Construction Admin III $ 210
Construction Observer / Resident Project Representative $ 102
Utility Coordinator II $ 125
Utility Coordinator III $ 160
Survey Technician I $ 50
Survey Technician II $ 65
Survey Technician III $ 85
Survey Technician IV $ 120
Surveyor II $ 110
Surveyor III $ 129
Surveyor IV $ 174
GIS Analyst II $ 83
GIS Analyst III $ 117
GIS Analyst IV $ 122
Funding Coordinator I $ 116
Funding Coordinator II $ 131
Funding Coordinator III $ 141
Community Development Coordinator $ 133
Project Assistant $ 79
Reimbursables: Mileage will be billed at the current IRS Standard Mileage Rate,
Subcontracted Services and other expenses at cost plus 10%.
Annual adjustments are made on July 1st of each year. The above hourly rates reflect
current rates for the period through June 30, 2022. Hourly billing rates will change
next on July 1, 2022 to reflect Direct Payroll Costs (salaries) being paid at that time.
Effective Rates July 1. 2021 through June 30. 2022

ATTACHMENT G — EASEMENTS, ENCROACHMENTS AND LEASE
AGREEMENTS
See attached documentation.
ATTACHMENT H — AFFILIATIONS
See attached document for requested changes.

WATER SERVICE AGREEMENT
RECE(vEc/NODE /DvvR
JUL 15 2016
tfon-Discharge
Permitting Unit
AGREEMENT made this 1ST day of July, 2005, by and between ONSLOW WATER
AND SEWER AUTHORITY, a body politic and corporate of the State of North Carolina and
the TOWN OF HOLLY RIDGE (the "Town") a political subdivision of the State of North
Carolina ;
WITNES SETH:
WHEREAS, the County of Onslow (the "County"), the City of Jacksonville
("Jacksonville"), and the Towns of Swansboro ("Swansboro"), Richlands, North Topsail Beach
("North Topsail") and Holly Ridge ("Holly Ridge"), acting through their respective governing
bodies, pursuant to the provisions of Article 1, Chapter 162A of the General Statutes of North
Carolina, as amended, organized and incorporated the Onslow Water and Sewer Authority (the
"Authority") as a vehicle to assist in providing a satisfactory supply of potable water and sewer
collection/treatment for the member governments of the Authority; and
WHEREAS, the County, Jacksonville, Richlands, Swansboro, North Topsail and Holly
Ridge are the sole members of the Authority; and
WHEREAS, the Authority has entered into agreements with the United States of America
which provide that the Marine Corps Base, Camp Lejeune, shall provide specified volumes of
potable water and sewer treatment capacity to the Authority; and
WHEREAS, the Town is in need of additional potable water capacity and desires for the
Authority to make water from Camp Lejeune available to the Town's citizens; and
WHEREAS, the Town has determined that the Authority will be better able to meet the
needs of its citizens if the Authority Ieases and operates the water and sewer systems of its
member governments to which it will be providing water and sewer service (provided, however,
that said deteiniination applies only to the Town of Holly Ridge's water system at the present
time); and
WHEREAS, the Authority is authorizedand empowered to acquire, lease, construct,
reconstruct, extend, improve, maintain, better and operate potable water and sewage
collection/treatment facilities and has determined that it will be in its best interest and in the best
interest of its member governments to lease, operate and maintain the water system of the Town;
and
WHEREAS, the Town has leased its water system to the Authority pursuant to a Capital
Lease Agreement (the "Lease") of even date with this Agreement; and
WHEREAS, in consideration of the Town signing and delivering the Lease, the Authority
desires to enter into this Agreement to provide water service to the citizens of the Town.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and
conditions herein contained, it is agreed among the parties as follows:
1. Tenn. This Agreement shall become effective upon its execution and shall
continue in effect until the Lease is terminated.
2. Service. The Authority agrees, when economically and technically feasible, to
meet the potable water supply, treatment and distribution needs of the citizens of the Town, who
are not provided water, by any other governmental entity or public utility, subject to limitations
upon the Authority's ability to do so caused by (i) the amount of potable water supply, treatment
capacity and distribution lines available to the Authority, (ii) obligations of the Authority to
provide water service to others, (iii) the capacity of the Authority's water system and (iv)
completion of any improvements the Authority elects to make to enable it to provide water
service. Nothing herein shall obligate the Authority to provide any potable water supply if the
provision thereof will result in the Authority being in violation of any applicable laws or other
governmental regulations or result in a material breach of any agreements to which the Authority
is a party. The Authority shall maintain a satellite office in the Town for the purpose of bill
payment and telephone communication from customers. The Town shall if requested by the
Authority provide at actual cost an office at the town hall but not equipment (other than
telephones) and fumishings. The Authority shall pay the Town annually for the cost of such
office.
3. Planning. In order to provide for the public health and welfare, the Authority will
use reasonable efforts to develop additional potable water supply, treatment and distribution
facilities and sewer collection/treatment capacity to meet the needs of all of its customers and
will use financial planning practices, policies and procedures that are in the opinion of the
Authority reasonably sound to provide funds, through water and sewer user rates, impact fees
and related charges, and/or loans, necessary to provide the facilities to meet such needs.
4. Authority to Provide All Water Service. So long as the Authority is capable of
meeting the water needs of the citizens of the Town pursuant to this agreement, the Town shall
not without the prior consent of the Authority acquire or produce potable water from any source
other than the Authority. The parties agree that in the event the Town breaches provisions of this
paragraph, monetary damages would not adequately compensate the Authority and in the event
of such breach, the Authority shall be entitled to equitable relief requiring that the Town comply
with the terms of this paragraph.
5. Operation and Maintenance. The Authority shall operate and maintain or cause
to be operated and maintained its water and sewer systems in a safe, efficient and economical
manner, making all necessary and proper repairs, replacements and renewals consistent with
good business and operating practices for comparable facilities in accordance with applicable
standards of regulatory bodies_ The Authority shall cause a consulting engineer(s) to inspect its
systems at least once every thirty six months and to submit to the Authority a report identifying
any operation or maintenance or repair problems and setting forth for the ensuing thirty six
month period (a) the engineer's recommendations as to any revisions that should be made in the
methods of operation and maintenance of the systems and any repairs that must be made to
2

properly operate and maintain the systems in such period and his estimate of the cost of such
repairs and methods, (b) his estimate as to the amount of adequate reserves for extraordinary
repairs, renewals and replacements to the systems in such period, (c) his estimate as to the
staffing requirements of the Authority for such period and (d) his estimate as to any additional
insurance that may be needed to insure the Authority against loss due to casualty loss or damage
to the systems.
The Town shall be entitled at its expense to paint upon the Town's existing water
tank/tower, the words "The Town of Holly Ridge", a logo of the Town's choosing or any other
words or graphics of its choice and to install upon the tank/tower such lighting as it chooses,
whether to illuminate the Town's name and/or logo or other words or graphics or whether for
holiday or seasonal purposes, and shall be entitled to a perpetual, relegable non-exlexusive
easement and right of entry, ingress, egress and regress upon said tank/tower for the purposes of
installing, maintaining, servicing, repairing, removing and replacing such words, graphics or
lighting, provided that such activity does not unreasonably interfere with the Authority's
operation of the tank/tower as anticipated and provided herein.
6. Insurance. The Authority shall carry at all times insurance covering all properties
belonging to its water and sewer systems insuring against loss or damage from such causes as are
customarily insured against by enterprises of a similar nature.
7. Ordinances and Regulations. All water service provided to the citizens of the
Town shall be subject to and in accordance with the Authority's Rules and Regulations for
Rendering Water Service, as they may be amended from time to time. The Authority's Rules
and Regulations for Rendering Water Service shall address all aspects of water service to the
Town. except water and sewer system expansions within the Town and the Town's area of
extraterritorial jurisdiction (the "ETJ"). The Town agrees during the terra of this agreement to
enact and at all times maintain in effect an ordinance(s) governing the expansion of water and
sewer utilities within. the Town's corporate limits and the ETJ (the "Town Ordinance"). The
Authority shall only make expansions to the Authority's water and sewer lines for the purpose of
serving new customers within the Town's corporate limits and the ETJ in accordance with the
Town Ordinance. Notwithstanding the foregoing, the Authority may make System extensions
within the Town or the ETJ in accordance with the Authority's ordinances, rules and regulations
if the Town does not have its own ordinances in effect governing System expansions and
extensions within such areas.
8. Billing. The Town and the Authority shall work cooperatively and take all steps
reasonable necessary to provide that customers who received water service from the Authoirty
and who also receive sewer service, solid waste service or recycling service (or any combination
thereof) from the Town receive only one bill for all of the services. The parties anticipate at this
time that the Town will provide the Authority the Town's billing information for sewer, solid
waste and recycling services and that the Authority will issue one bill to each customer for all of
said services received by that customer and remit to the Town the portion of the receipts that
represents the Town's charge for the service(s) provided by the Town.
3

9. Representations and Warranties. The Town and the Authority each represent to
the other:
a. That each has the full legal right, power and authority to execute this
agreement;
b. That each by official action prior to or concurrently with the date hereof
by action of its respective governing boards approve the execution and delivery of this
agreement;
c. This agreement constitutes the legal, valid and binding agreement of each
party hereto, enforceable in accordance with its terms except as enforcement hereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
effecting the enforcement of creditors rights generally and may be limited by general
equitable principles concerning remedies.
d. In addition to the mutual representations set out in this paragraph, the
Authority specifically acknowledges that the future well-being and orderly growth of the
Town is largely contingent upon the availability of potable water supply and waste -water
collection and treatment capacity and that the Town is engaged at the present time in a
substantial capital improvements project to upgrade and increase it wastewater collection
and teatment capacities. The Authority agrees that it will extend its services into those
areas contiguous with the Town's corporate limit and those areas contained within the
Town's area of extraterritorial jurisdiction only in accordance with the Town's
annexation policy and that the Authority will ensure whenever economically and
technically feasible that its services are in fact extended into all areas for which the owner
has petitioned the Town for annexation.
10. Successors and Assigns. This agreement shall be binding upon, inure to the
benefit of and be enforceable by the parties hereto and their respective successors and assigns;
provided, however, that neither party may assign their rights, liabilities and obligations
hereunder without the consent of the other party except that the Authority may assign this
agreement to a trustee without the consent of the Town in regard to Authority Bond issues or
other financings.
11. Severability. If any provision of this agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not affect any other
provision thereof.
12. Waiver. Any party's failure to insist upon the strict performance of any provision
of this agreement, or to exercise any right based upon a breach thereof, or the acceptance of any
performance during such breach, shall not constitute a waiver of any rights under this agreement.
13. Counterparts. This agreement maybe executed in several counterparts, any of
which shall be regarded for all purposes as one original.
4

14. Controlling Law. This agreement shall be construed and enforced in accordance
with the laws of the State of North Carolina.
IN WITNESS WHEREOF the parties have executed this agreement the day and year first
above written.
al to
ONSLOW WATER AND SEWER AUTHORITY
By:
TOWN OF HOLLY RIDGE
By: aOeW'
to ��

CAPITAL LEASE AGREEMENT
THIS CAPITAL LEASE, entered into as of the 30th day of June, 2005, by
and between the TOWN OF HOLLY RIDGE, a municipal corporation of the State
of North Carolina (the "Town") and ONSLOW WATER AND SEWER
AUTHORITY, a body politic and corporate of the State of North Carolina (the
"Authority').
RECITALS:
This Capital Lease Agreement is entered into pursuant to the terms of
Agreement to Lease Utility System (the "Agreement to Lease") between the
Town and the Authority dated the „,?,2„ Jay of 1AO , 2005.
AGREEMENT
The Town hereby leases to the Authority and the Authority hereby rents
from the Town, the Town's water system consisting of the real and physical
assets described on Schedule 3.6(a)(i) of the Agreement to Lease (the "Leased
Assets"). All of the Leased Assets are located in the Town. The Town also
assigns and transfers to the Authority the "Transferred Assets" described in
Article I, Section 2.1 of the Agreement to Lease.
1. Term. This lease shall commence on July 1, 2005 (the
"Commencement Date") and shall terminate June 30, 2035.
2. Option to Extend. Provided that the Authority is in compliance with
all the terms and conditions of this lease, it may extend the term of this lease for
additional successive terms of 15 years each by the giving of Notice of election to
extend, which Notice must be given no later than 2 years before the end of the
original or any extended term of this Agreement. The Authority shall be entitled
to exercise these options to extend at any time after the Commencement Date.
3. Rent. The rent for the entire term and extended term of this lease
shall be payable on or in advance of the Commencement Date and shall consist
of the payment of the Town's bond and other indebtedness as required by Article
II of the Agreement to Lease.
4. Possession. The Authority shall have exclusive possession of the
Leased Assets which shall be delivered to the Authority on the Commencement
Date; provided, however, that the lease of the real property upon which the
Town's existing water tower/tank is located shall be non-exclusive and Holly
Ridge retains the right to use said real property in any reasonable manner not
inconsistent with the lease contemplated herein, including without limitation, the
right to negotiate for and place antennas on the water tower in accordance with
current standards so long as appropriate Authority personnel approves the same
for the sole purpose of ensuring safety and structural integrity of the tower. All

proceeds from antenna rentals shad belong to the Town. The Town shall.also be
entitled to maintain its name in print on the face of the water tank.
5. Alterations and Abandonment. The Authority may make such
alterations to the Leased Assets as the Authority in its sole discretion deems
appropriate. The right to alter the Leased Assets includes but is not limited to the
right to connect the Leased Assets with and make them a part of other utility
facilities leased or owned by the Authority (the Leased Assets together with the
other utility facilities owned or leased by the Authority are referred to herein as
the "System"). The Authority may also abandon and dispose of any of the
Leased Assets which become obsolete or which the Authority otherwise deems
are not necessary for the proper operation and maintenance of the System;
provided, however, that before disposing of any Leased Assets which the
Authority has abandoned it shall first give Notice of such intent to the Town. if
the Town does not take possession of such abandoned property within 45 days
of such Notice, the Authority shall be free to dispose of the property without
liability to the Town. Any portion of the Leased Assets comprised of real estate
or easements encumbering real estate not put to public use by the Authority for
a continuous period of eighteen months shall be considered abandoned and shall
be returned to the Town.
6. System Operation and Maintenance. The Authority shall at its sole
cost and expense operate and maintain or cause to be operated and maintained,
the System in a safe, efficient and economical manner making all necessary and
proper repairs, replacements and renewals consistent with good business and
operating practices for comparable facilities and in accordance with applicable
standards of regulatory bodies.
7. Extensions and Additions. The Authority may at its sole cost and
expense make such enlargements and extensions to the System as it deems
appropriate and such extensions and additions may be connected to the Leased
Assets. All such extensions and additions shall be the sole property of the
Authority.
8. Use. The Authority shall establish and enforce rules and
regulations governing the use and operation of the System. The Authority shall
not permit the use of the System for any unlawful purpose.
9. User Rates/Revenues. The Authority shall for each fiscal year
establish utility user rates which are at feast sufficient to pay its current expenses
for operation and maintenance and debt service on its debt obligations. The
Authority shall not incur current expenses in any fiscal year in excess of the
reasonable and necessary amount thereof. Alt revenues from the System shall
be the sole and exclusive property of the Authority and the Town shall have no
claim to such revenues by virtue of the Town owning the Leased Assets.

10. Annual Review of the System/Other Information and Reports. (a)
The Authority shall cause its consulting engineer to make a review of the System
at least once in each Fiscal Year and, on or before the 60th day next preceding
the first day of each Fiscal Year, to submit to the Authority a report setting forth
(a) its findings whether the System has been maintained in good repair, working
order and condition and (b) its recommendations as to:
(i) the proper maintenance, repair and operation of the System
during the ensuing Fiscal Year and an estimate of the amount of money
necessary for such purposes, and
(ii) the improvements, renewals and replacements that should
be made during the ensuing Fiscal Year and an estimate of the amount of money
necessary for such purposes.
Promptly after the receipt of such reports by the Authority, copies thereof
shall be mailed by the Authority to the Town.
If any such report of the consulting engineer indicates that the System has
not been maintained in good repair, working order and condition, the Authority
promptly shall restore the System to good repair, working order and condition
with all expedition practicable.
(b) The Authority shall within 14 days of receipt provide the Town
with a copy of (i) its audited financial statements for each fiscal year, (ii) the
minutes of its Board meetings, (iii) all notices of violations received from any
state or federal agency and (iv) all security advisories from the Department of
Homeland Security or other cognizant state or federal agency.
(c) The Executive Director of the Authority shall within 30 days
after receipt of the Authority's annual audit provide a written report to the Town
on the financial condition of the Authority. The Executive Director shall also
provide such other written reports as the Town may reasonably request from time
to time so long as obtaining the information for the report does not require the
hiring of consultants or the expenditure of funds by the Authority other than the
normal salary of its staff and related costs.
11. Insurance. From the Commencement Date forward, the Authority
shall carry at all times insurance with a responsible insurance company or
companies, authorized and qualified under the laws of the State to assume the
risk thereof, covering such properties belonging to the System as are customarily
insured, against loss or damage from such causes as are customarily insured
against, by enterprises of a similar nature and also comprehensive general
liability insurance on the System for bodily injury and property damage, provided
that the same shall meet the following minimum requirements:

(a) fire (with Uniform Standard Extended Coverage
Endorsements or equivalent coverage obtainable through federal or State
programs) and vandalism and malicious mischief insurance, as may be approved
for issuance in the state, including insurance against loss or damage from
lightning, windstorm, hail, hurricanes, tornadoes, floods, explosion, riot, riot
attending a strike, civil commotion, aircraft, vehicles and smoke, at all times in
amounts equal to the greater of (1) the principal amount of all bonds of the
Authority at any time outstanding and (2) the full replacement cost of the
properties comprising the System, which amount shall be sufficient to ensue that
the Authority could not become a co-insurer under the terms and conditions of
the applicable policy or policies. The replacement cost of the properties
comprising the System shall be determined at least once every five years or
more often upon the request of the insurer by an appraisal by qualified
appraisers or other persons or entities selected by the Authority. The Authority
shall provide a copy of the appraisal to the Town within 30 days after the receipt
thereof.
(b)
ith limits of not
less than $2,000,000 combined comprehensive general single t for abod bodily injury and bility insurance �propertydamage
occurrence;
property
(0)
required by laws.
workers' compensation insurance in such amounts as are
If upon mutual consent the Authority and the Town determine that the
amount of insurance coverage required by this paragraph is not available on
reasonable terms and conditions, the insurance coverage required by this
paragraph may be modified in accordance with such determination, and the
coverage as modified shall constitute the minirnur requirements of this
agreement.
All insurance coverage shall be maintained through policies that (i) are
issued by a financially responsible insurer or insurers qualified to write the
respective insurance in the State and of recognized standing, (li) are in such form
and contain such provisions (including, without limitation, the loss payable
clause, the waiver of subrogation clause, clauses relieving the insurer of liability
to the extent of minor claims, and the designation of the named insured parties)
as are generally considered customary provisions for the type of insurance
involved, and (iii) prohibit cancellation or substantial modification by the insurer
without at least 60 days' prior written notice to the Authority.
The Authority shall have no liability for casualty losses to or of the System
except for its obligation to maintain the insurance required by this paragraph and
to apply insurance proceeds as required by this paragraph.

13. Compliance with Applicable Law. The Authority shall comply or
cause there to be compliance with all applicable laws, orders, rules, regulations
and requirements of all municipal or other governmental authorities relating to the
use, operation and occupancy of the System. Nothing contained in this
paragraph shall prevent the Authority from contesting in good faith the
applicability or validity of any law, ordinance, order, rule, regulation or
requirement so long as the authority shall have received an opinion of Authority
counsel to the effect that such failure to comply during the period of such contest
will not materially impair the use or the revenue=producing capacity of the
System.
14. Consultants. The Authority agrees to employ such accountants,
consulting engineers and attorneys and to at give them such access to the
System as necessary to perform the duties imposed on them by this Lease.
15. Contracts, Leases, and Other Agreements; Water Supply
Agreements. The Authority may contract or agree for the performance by others
of operations or services in connection with the System or any part thereof for
any lawful purpose; provided, however, that the Authority shall remain fully
obligated and responsible under this lease to the same extent as if such lease or
contract had not been executed.
16. Payment of Charges and Discharge of Liens. The Authority shall
pay or cause to be discharged, or shall make adequate provision to satisfy and
discharge, within 60 days after the same shall become due and payable all lawful
costs, expenses, liabilities and charges relating to the maintenance, repair,
replacement, improvement and operation of the System and all lawful claims and
demands for labor, materials, supplies or other objects that might by law become
a lien upon the System or System revenues if unpaid, provided that nothing
contained in this paragraph shall require the Authority to pay or cause to be
discharged, or make provision for the satisfaction and discharge of any cost,
expense, liability, or charge so long as the validity thereof shall be contested in
good faith and by appropriate legal proceedings in the same manner as is
hereinafter provided for the contest of liens and encumbrances.
If any lien not specifically permitted hereby is filed or asserted against the
System or System revenues or any part of the foregoing by reason of labor,
materials, supplies or other items supplied or claimed to have been supplied on
or to the System at the request or with the permission of the Authority or of
anyone claiming to act for the Authority, then within 30 days after it receives
notice of the filing or the assertion thereof, the Authority shall cause the same to
be discharged of record or effectively prevent the enforcement or foreclosure
thereof against the System or System revenues, or any part of the foregoing, by
contest, payment, deposit, bond, order of court or otherwise. Nothing in this
Section shall require the Authority to satisfy or discharge any such lien,
encumbrance, charge, claim or demand so long as the validity thereof shall be

contested in good faith and by appropriate legal proceedings, and the Authority
shall have received an opinion of Authority Counsel to the effect that such
contest does not jeopardize the interests of the authority, in the System or
System revenues or any part of the foregoing; provided that prior to such contest
the Authority shall have prevented the foreclosure or enforcement of any lien,
claim, encumbrance, charge or demand against the Authority by payment or
order of court, or by depositing with an escrow agent, an amount sufficient to
satisfy or discharge such lien, claim, encumbrance, charge or demand, or by
obtaining a surety bond in an amount sufficient to satisfy the same.
17. Easements. To the extent permitted by law and for a public
purpose, the Authority may lawfully grant or release, as the case may be, with or
without consideration, easements, rights of way, licenses or other rights over,
upon or beneath the surface of the land constituting a part of the System,
provided that the efficient operation of the System shall not be thereby impaired.
18. Eminent Domain. (a) If any public authority or entity, in the
exercise of its powers of eminent domain, takes or damages the System, or any
material part thereof, the Authority shall take, or cause to be taken, prompt and
appropriate measures to protect and enforce its rights and interests in connection
with any condemnation proceedings, and the Authority shall cooperate with the
Town in the protection of their mutual rights and interests. Prompt written notice
of any taking or damaging of any material part of the System or of any official
notice of any proceeding thereof of any public instrumentality, body, agency or
officer shall be given to the Town and to the other interested party by the party
first informed thereof.
(b) fmmediatefy after any such taking or damaging of the
System, the Authority shall either replace, repair, rebuild or restore the System or
cause the net proceeds of any award or compensation resulting from any such
taking or damaging (being the total proceeds therefrom less all reasonable and
necessary legal and other costs and expenses incurred by the Authority in
connection with such taking or damaging) to be applied to the redemption of
bonds, or if no bonds are outstanding, to be deposited to the Authority's general
fund.
19. Event of Default. Each of the following events is hereby declared
an "Event of Default":
(a) payment of the interest on any bonds of the Authority shalt
not be made when the same shalt become due and payable;
(b) payment of the principal of, or the redemption premium, if
any, on any bonds of the Authority shall not be made when due and payable,
whether at maturity, by proceedings for redemption, or pursuant to a sinking fund
requirement or otherwise;

(c) failure of the Authority to perform, observe or comply with
any of the other covenants, agreements, conditions or provisions in this lease
and the continuance thereof for a period of 30 days after receipt by the Authority
of a Notice from the Town specifying such default and requesting that it be
corrected; provided, however, if prior to the expiration of such 30-day period the
Authority institutes action reasonably designed to cure such default, no "Event of
Default" shall be deemed to have occurred upon the expiration of such 30-day
period for so long as the Authority pursues such curative action with reasonable
diligence and provided that such curative action can be completed within a
reasonable time;
(d) The discontinuance of the operation and maintenance of the
System, without cause, for a continuous period of 5 days after receipt by the
Authority of a written notice from the Town specifying such default and
requesting that it be corrected;
(e) an order or decree shall be entered, with the consent or
acquiescence of the Authority, appointing a receiver or receivers of the Authority
or of the Authority's revenues, or if such order or decree, having been entered
without the consent or acquiescence of the authority, shall not be vacated or
discharged or stayed on appeal within sixty (60) days after the entry thereof;
(f) any proceeding shall be instituted, with the consent or
acquiescence of the Authority, for the purpose of effecting a composition
between the Authority and its creditors or for the purpose of adjusting the claims
of such creditors, pursuant to any federal or state statute now or hereafter
enacted; or
(g) any court of competent jurisdiction shall assume custody or
control of the Authority or of the whole or any substantial part of its property or
the System, under the provisions of any other law for the relief or aid of debtors,
and such custody or control shall not be terminated within sixty (60) days from
the date of assumption of such custody or control.
20. Remedies. Upon the occurrence of any Event of Default, the Town
may, upon notice to the Authority, terminate this Lease and upon such
termination, the Authority shall deliver the Leased Assets to the Town "as is";
provided, however, that before the termination of this Lease shall become
effective, (A) the Authority, the Town and any other units of government to which
or to whose citizens the Authority provides utility service shall have entered into
an agreement(s) addressing (i) the disposition of the Authority's debt and non -
tangible assets, (ii) the continued operation by the Authority of the remainder of
its System or the disposition of the remainder of the System if not to be operated
and maintained by the Authority, and (iii) the method of joint

ownership/operation and maintenance of those portions of the Leased Assets
(and the remainder of the System if not to be operated and maintained by the
Authority) which provide common service to more than one member government
of the Authority or its citizens, and (B) the agreement(s) required by this
paragraph must be approved by the Trustee under the General Trust indenture
of the Authority dated as of June 15, 2004.
21. No Transfer or Encumbrance by the Town. The Town shall not
voluntarily transfer; convey or encumber or suffer the involuntary transfer,
conveyance or encumbrance of the Leased Assets. The Authority shall be
entitled to take such legal action in the name of the Town as it deems appropriate
to protect the Leased Assets from such transfer, conveyance or encumbrance.
22. Utilities. The Authority shall provide all electricity and other utilities
needed for the operation of the Leased Assets [Joint Use Faciiitiesi.
23. Pledge of Leased Assets. The Authority may pledge and encumber
the System (including the Leased Assets) and the revenues thereof to secure
bond and other indebtedness of the Authority. The Authority may also pledge
and mortgage its interest in this Lease to secure such indebtedness. All such
pledges and encumbrances shall be superior to this Lease and to all rights and
interest of the Town herein; provided, however, that the bond indenture or other
documents evidencing and securing such indebtedness contain a provision to the
effect that upon the occurrence of any event of default under and bond, note,
indenture or other security or related loan/bond document, the trustee or the
holder of such indebtedness, as the case may be, shall provide the Town with
written notice of such default and the Town shall have the right to cure such
event of default within the cure period granted to the Authority in such indenture
or other document.
24. Incorporation by Reference. The terms of the Agreement to Lease
are incorporated herein by reference and made a part hereof.
25. Notices. All notices ("Notice") or other communications which are
required or permitted hereunder shall be in writing and sufficient if (a) delivered
personally or (b) sent by registered or certified mail, postage prepaid, or (c) sent
by overnight courier with a nationally recognized courier, or (d) via facsimile
confirmed in writing in any of the foregoing manners, as follows:
If to the Town:
with copies to:

If to the Authority: PO Box 7227
Jacksonville, NC 28540
With a copy to:
Hogue, Hill, Jones, Nash & Lynch, L.L.P.
101 South Third Street
P. O. Drawer 2178 (28402)
Wilmington, NC 28401
Attention: William O. J. Lynch
Any party may change its address for purposes of Notice by giving notice in
accordance with the provisions of this Section. Any Notice will be deemed to be
given when received, if personally delivered or sent by telecopy, and, if mailed,
five days after deposit in the United States mail, properly addressed, with proper
postage affixed.
26. No Waiver. No failure by either party to insist upon the strict
performance of any provision of this Lease or to exercise any right or remedy
consequent upon a breach thereof, and no acceptance of full or partial rent or
other performance by either party during the continuance of any such breach
shall constitute a waiver of any such breach of such provision.
27. Further Assurances. The Town shall cooperate with the Authority
and the Authority's lenders to make such modifications to this Lease as may be
required to facilitate financing by the Authority to the extent such requested
modifications do not increase the costs to the Town and are otherwise consistent
with the purpose and intent of this Lease.
28. Disputes. Any disputes involving the operation, effect, extension,
or termination of this Agreement shall be submitted to mediation as a explicit
condition precedent to litigation.
29. Quiet Eniovment. So long as the Authority has not committed an
Event of Default, it shall have the quiet and peaceful enjoyment of the Leased
Assets, free from any interference whatsoever from the Town.
30. Holding Over. In the event the Authority holds over after the
expiration of the original or the extended term of this Lease, this Lease shall
become a lease from year to year.
31. Successors. The terms of this Lease are binding on the
successors and assigns of the Town and the Authority.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

{SIGNATURE PAGE TO CAPITAL LEASE AGREEMENT BETWEEN
ONWASA AND HOLLY RIDGE]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed as of the day and year first above written.
TOWN:
TOWN OF HOLLY RIDGE
Its: p(itopz-/-
AUTHORITY:
ONSLOW WATER AND SEWER AUTHORITY
By:
Its:
Title: C,- -:1 ma.c\
STATE OF NORTH CAROLINA
COUNTY OF �ins,io ck)
I, Wav,i/Pen 5a nd /r A , a Notary Public of the County and State aforesaid,
( certify that trier Pac/q elf- personally came before me this day and
acknowledged that _he is — Mayor of the Town of Holly Ridge, a municipal corporation,
and that and that hefshe, as Mayor, being authorized to do so, executed the foregoing
on behalf of said Town of Holly Ridge. WITNESS my hand and official stamp or seal the
,,, 116tUUq..' /na.y 2f bS
It111:1,,,,4. SF
i l �l expires; r b.2-0 .2 ��f �1�iI�J/tL
(SEALNotary Public
h auk

I, {r ee,-2�0o.-Lf,a Notary Public of the county and state aforesaid, certify
that tsk, ,.,,-, n ir,,-i-t--- personally came before me this day and
acknowledged that he is the Chairman of Onslow Water and Sewer Authority, a
body corporate and politic, and that he, as Chairman, being authorized to do so,
executed the foregoing on behalf of said Onslow Water and Sewer Authority. WITNESS
my hand and seal, this the'..`? day of ;�Q , 20crc
My commission expires: pgi i�i c 9 0 2., - ._ o Notary Public
(SEAL)

North Carolina Department of Environmental Quality
Division of Water Resources
Permit Number: WQ0019907
Permit Type: Wastewater Irrigation
Facility Name: Holly Ridge WWTF
Facility Addressl: 286 N Jenkins St Ext
Facility Address2:
City, State & Zip:
Holly Ridge, NC 28445
Owner Information Details:
MUST submit a Change of Name/Ownership form to DWR to make any changes to this Owner information.
(Click here for "Change of Name/Ownership"form)
Owner Name: Onslow Water and Sewer Authority
Owner Type:
Government - County Owner Type Group: Organization
*** Legally Responsible for Permit ***
(Responsible corporate officer/principle executive officer or ranking elected official/general partner or proprietor;
or any other person with delegated signatory authority from the legally responsible person.)
Owner Affiliation:
Addressl:
Address2:
City, State & Zip:
Work Phone:
Email Address:
Jeffrey L Hudson Title: Executive Director
228 Georgetown Rd
Jacksonville, NC 28540
910-937-7532
[e-mail]
Fax: [phone]
*** Permit Annual Fee Billing ***
Billing Month: September
Invoice Number
Invoice Date Invoice Due Date
Invoice Amount Invoice Status
Owner Contact Person(s)
Contact Name Title Address
0Wynne-P4-Ray.-Bevelepment 228 Georgetown Rd, Jacksonville, NC
r 28540
Phone Fax
91Q 937 7526
Email
Facility Contact Person(s)
Contact Name Title
24-Hour Contact
Holly Ridge
Address
Phone Fax Email
910-340-9201
Permit Contact Person(s)
Contact Name Title ©
Address
228 Georgetown Rd, Jacksonville, NC
28540
Phone Fax Email
-010 937-7523
Permit Billing Contact Person(s)
Contact Name Title
Onslow Water
and Sewer
Authority
t S 774 B2o r-0/
Address
228 Georgetown Rd, Jacksonville, NC
28540
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Phone Fax
910-455-0722 910-347-0793
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Email
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1/25/2022
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Permit Number: WQ0019907
Permit Type: Wastewater Irrigation
Facility Name: Holly Ridge WWTF
Facility Addressl: 286 N Jenkins St Ext
Facility Address2:
City, State & Zip:
Holly Ridge, NC 28445
Persons with Signatory Authority
Tvpe Contact Name Title
Owner David M Mohr PE
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Address
228 Georgetown Rd,
Jacksonville, NC 28540
Phone Fax Email
910-937-7521 [e-mail]
T- 9+0-937 7523
Jacksonville, NC 28540
Designated Operators
If the designated operators listed below are incorrect or no longer associated with the collection system, the information can be updated by su
a completed "Operator Designation Form" (Click Here for ORC Designation Form). Please provide specific details as to the changes requested, i
the addition/removal of designated operators. For all other operator questions or issues, please call 919-807-6353.
Facility Classification: SI
Operator Name
Kary Alexander Herndon
Role
ORC
Cert Tvpe Cert Status
SI Active
Cert # Effective Date
1010314 4/1/2021
Mark Curtis Young
Backup SI Active
986110 4/1/2021
Facility Classification: WW2
Operator Name
Kary Alexander Herndon
Role
ORC
Cert Type Cert Status
WW-3 Active
Cert # Effective Date
1009156 1 /1 /2021
Samantha Jean Howard
Backup WW-3 Active
1011381 1/1/2022
Perry James Parker
Backup WW-3 Active
1011326 1/1/2022
Mark Curtis Young
Backup WW-4 Active
1001105 4/24/2018
1/25/2022
Page 2

ATTACHMENT I — COMPLIANCE SCHEDULES
In accordance with Section 1.1 of the existing permit, the Summerhouse
Wastewater Reclamation WWTP (WQ0029945) was restored to service
capability. See attached Start -Up & Compliance Inspection Report dated
May 8, 2017
ATTACHMENT J — CIVIL PENALTIES AND OUTSTANDING VIOLATIONS
Not applicable to this facility.
ATTACHMENT K — INDUSTRIAL WASTEWATER
Not applicable to this facility.
ATTACHMENT L — SETBACK WAIVERS
Not applicable to this facility.

Water Resources
tin, ironmrnlal Uualit,
May 8, 2017
Mr. Edward Caron, Utilities Superintendent
Onslow Water and Sewer Authority
P.O. Box 1415
Jacksonville, NC 28540-1415
ROY COOPER
MICHAEL S. REGAN
Sec retro.;
S. JAY ZIMMERMAN
/)rrecfnr
Subject: Start -Up & Compliance Inspection Report
ONWASA Summerhouse WRF
Permit No. WQ0029945
Onslow County
Dear Mr. Caron:
A start-up/compliance inspection of the ONWASA Summerhouse Water Reclamation Facility was
conducted by Tom Tharrington from this office on April 4, 2107. This inspection was conducted to ensure
the facility is prepared to start wastewater treatment operations and to verify that the facility is compliant
with the conditions and limitations specified in Permit No. WQ0029945. The findings and comments
noted during this inspection are provided in the enclosed copy of the "Compliance Inspection Report".
There were no significant issues or findings noted during this inspection, thus a response to this inspection
report is not required.
An email was sent to the Central Office in Raleigh to request NDMR monitoring to be activated for this
permit. You should be prepared to submit NDMR data beginning in May 2017. If you have any questions
concerning this report, you may contact the inspector at the letterhead contact or via email at
[e-mail]
Sincere)
� Dr. Me e� Ila Sanchez -King, PE, Assistant Regional Supervisor
Water Quality Regional Operations Section
Wilmington Regional Office
Division of Water Resources, NCDEQ
Enclosures
Cc: Wilmington Regional Office Files (Yellow Folder)
Central Files, Water Quality Section
State of North Carolina I Department of Environmental Quality I Division of Water Resources
127 Cardinal Drive Ext., Wilmington, NC 28405
919 796 7215