WQ0023693_Final Permit_20221219

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
NORTH CAROLINA
Environmental Quality
December 19, 2022
JOHN NICHOLS, PE — DIRECTOR OF PUBLIC UTILITIES
BRUNSWICK COUNTY
POST OFFICE BOX 249
BOLIVIA, NORTH CAROLINA 28422
Subject: Permit No. WQ0023693
West Brunswick Regional WRF
Reclaimed Water Generation,
Distribution, Dedicated
Utilization, and High -Rate
Infiltration System
Brunswick County
Dear Mr. Nichols:
In accordance with your permit renewal request received June 3, 2022, and subsequent additional
information received September 26, 2022, we are forwarding herewith Permit No. WQ0023693 dated
December 19, 2022, to Brunswick County for the continued operation of the subject reclaimed water
generation, distribution, dedicated utilization, and high -rate infiltration facilities.
The following modifications to the subject permit are as follows: the previously permitted jet
aeration system for Oxidation Ditch's 43 and 44 has been removed from the facility description.
This permit shall be effective from the date of issuance through December 31, 2029, shall replace
Permit No. WQ0023693 issued October 28, 2019, and shall be subject to the conditions and limitations
therein. The Permittee shall submit a renewal application no later than July 4, 2029.
Please pay attention to the monitoring requirements listed Attachments A, B, and C for they may
differ from the previous permit issuance. Failure to establish an adequate system for collecting and
maintaining the required operational information shall result in future compliance problems.
The Division has removed the following permit conditions since the last permit issuance
dated October 28, 2019:
➢ Old Condition L1 —This condition has been met.
➢ Old Condition L2 — This condition is no longer required as the Permittee has requested the
previously permitted oxidation ditch jet aeration system be removed from the permit.
➢ Old Condition L3 — This condition has been met.
➢ Old Condition L4 — This condition is no longer required as the Permittee has requested the
previously permitted oxidation ditch jet aeration system be removed from the permit.
➢ Old Condition L5 — This condition has been met.
� North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 11617 Mail Service Center I Raleigh, North Carolina 27699-1617
NORTH CAROLINA +
D^wr"^^00 ro^m^^v n^a� /'� 919.707.9000

Mr. John Nichols, PE
December 19, 2022
Page 2 of 2
➢ Old Condition L6 - This condition has been met.
➢ Old Condition L7 — This condition has been met.
➢ Old Condition L8 - This condition has been met.
➢ Old Condition IV.12 —This condition has been met.
➢ Old Condition IV.14 — This condition has been met.
If any parts, requirements, or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Otherwise, this permit shall be final and binding.
If you need additional information concerning this permit, please contact Lauren Raup-Plummer at
[phone] or Lauren.Plummerkncdenr.gov.
Sincerely,
Richard E. Rogers, Jr., Director
Division of Water Resources
cc: Brunswick County Health Department (Electronic Copy)
Wilmington Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Patrick Beggs — Operator Certification Group (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
RECLAIMED WATER GENERATION, DISTRIBUTION, DEDICATED UTILIZATION, AND
HIGH -RATE INFILTRATION SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Brunswick County
Brunswick County
FOR THE
operation of a 6,000,000 gallon per day (GPD) reclaimed water generation, distribution, dedicated
utilization, and high -rate infiltration facility consisting of the:
continued operation of a 6.0 million gallon per day (MGD) reclaimed water generation system consisting
o£
➢ approximately 7,000 linear feet (LF) of 24-inch sanitary sewer force main, 6,000 LF of 24-inch
reclaimed water main, and 2,000 LF of 8-inch water main; two air -release valves; and all associated
valves, controls, and appurtenances;
WQ0023693 Version 4.0 Shell Version 200201 Page 1 of 15

➢ dual 3.0 MGD reclaimed water generation trains consisting of three influent flow meters; a plant
headworks with three mechanical bar screens, a screening washer, a vortex grit removal system with
three 220 gallons per minute (GPM) grit pumps and two grit classifiers; an alkalinity feed system with
a 5,000 gallon chemical storage tank; an alum feed system with two 3,500 gallon alum storage tanks;
two equalization basins with a combined capacity of 750,000 gallons, each equipped with two 1,400
GPM transfer pumps, a 2,900 GPM jet -aeration pump, a 1,000 GPM jet -aeration pump, two 1,620 cubic
feet per minute (CFM) blowers, and two 540 CFM blowers; two oxidation ditch flow splitter boxes
with flow meters; four 950,000 gallon oxidation ditches each served by three 75 horsepower (hp) brush
aerators, three 5 hp submersible mixers, and adjustable effluent weirs; four 70 foot diameter secondary
clarifiers served by four 20 GPM scum pumps, six 1,400 GPM return activated sludge (RAS) pumps,
and four 100 GPM waste activated sludge (WAS) pumps; two 4,000 GPM ultrasonic RAS flow meters
and two 250 GPM ultrasonic WAS flow meters; four rotating disc package filters with a combined 6
MGD design flow; a disinfection system consisting of a sodium hypochlorite chemical feed and four
30 ft by 60 ft contact chambers; a reclaimed water pump station with four 2,800 GPM effluent pumps,
two 1,400 GPM effluent pumps, and two 200 GPM non -potable water pumps; a turbidity meter; two
2,100 GPM sewer drain pumps; two 238,000 gallon aerated sludge storage tanks each served by two
510 CFM blowers, two 320 CFM blowers, and a 1,465 GPM transfer pump; two 250 GPM WAS
thickener feed pumps; two gravity belt thickeners with a polymer feed system; an autothermal
thermophilic aerobic digestion (ATAD) facility for producing Class A biosolids consisting of four 40-
foot diameter ATAD tanks, a 70-foot diameter concrete storage tank, five 3,500 GPM jet -aeration
pumps, four 750 GPM foam -control pumps, seven 275 CFM blowers, two 5 hp sludge transfer pumps,
a 250 GPM truck loading pump, and two heat exchangers; a septage receiving station with a magnetic
flow meter, a fine screen, a screenings collector screw, an aerated grit chamber with a 2 CFM blower
and a 0.75 hp mixer, two 9,500 gallon aerated equalization tanks with two 75 CFM blowers, and two
50 GPM sludge pumps; two 1,600 kilowatt (kW) auxiliary generators with automatic transfer switches;
and all associated piping, valves, controls, and appurtenances; and
➢ a 30 million gallon (MG) synthetically -lined upset pond with two 2,100 GPM upset pumps; a 20,000
gallon infiltration pump tank; and all associated piping, valves, controls, and appurtenances; the
continued operation of a reclaimed water distribution system consisting of
➢ 15,269 LF of 16-inch reclaimed water main, 3,471 LF of 18-inch reclaimed water main, and 1,020 LF
of 20-inch reclaimed water main to serve from NC Highway 211 to the reclaimed valve vault (Section
5); 804 LF of 10-inch reclaimed water main and 15,650 LF of 16-inch reclaimed water main to serve
from Bolivia to the reclaimed valve vault (sewer force main) and valve vault to utilization site
(reclaimed water main); 5,774 LF of 10-inch reclaimed water main to serve from NC Highway 211 to
Carolina National Golf Course; 11,813 LF of 12-inch reclaimed water main and 13 LF of 16-inch
reclaimed water main to serve from NC Highway 211 to St. James Plantation; and all associated piping,
valves, controls, and appurtenances; the
continued operation of a 3.97 MGD dedicated reclaimed water utilization system consisting of
➢ the 1,623,500 GPD West Brunswick Drip Facility dedicated reclaimed water utilization system
consisting of. 2,665 LF of 16-inch reclaimed water main, a 98.25 MG synthetically -lined wet weather
storage pond; a reclaimed water pump station with a manual bar screen, two 3,300 GPM pumps and
one 1,600 GPM pump, two magnetic flow meters, a disc filtration system, and a sodium hypochlorite
feed system; 496.4 acres of drip irrigation area in five irrigation zones with a cover crop of Loblolly
pine trees; and all associated piping, valves, controls, and appurtenances;
➢ the 796,700 GPD Carolina National Golf Course dedicated reclaimed water utilization system
consisting of. a 13 MG storage and irrigation pond; 149.5 acres of reclaimed water spray irrigation
area; and all associated piping, valves, controls, and appurtenances;
➢ the 344,500 GPD IP Tract dedicated reclaimed water utilization system consisting of. 10,460 LF of 16-
inch reclaimed water main; two 1,200 GPM spray irrigation pumps; 50,88 acres of reclaimed water
spray irrigation area; and all associated piping, valves, controls, and appurtenances;
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➢ the 256,600 GPD Mercer Mill dedicated reclaimed water utilization system consisting of 5.1 MG of
wet weather storage for the Mercer Mill spray irrigation area in infiltration basin MM/2 under normal
operating conditions; 9.8 MG of wet weather storage for the Reserve Club at St. James allocated from
infiltration basin MM/1 via excess disposal capacity; two 1,300 GPM spray irrigation pumps; 37.86
acres of reclaimed water spray irrigation area; and all associated piping, valves, controls, and
appurtenances;
➢ the 599,650 GPD Members Club at St. James dedicated reclaimed water utilization system consisting
of a 200 GPM dual pump station with high-water alarms; 600 LF of 4-inch reclaimed water main and
4,100 LF of 10-inch reclaimed water main; a 3 MG storage and irrigation pond; a 1,050 GPM dual
irrigation pump station with high-water alarms; 102.4 acres of reclaimed water spray irrigation area;
and all associated piping, valves, controls, and appurtenances; and
➢ the 353,400 GPD Reserve Club at St. James dedicated reclaimed water utilization system consisting of
a 1,000 GPM dual pump irrigation dosing station; 70 acres of reclaimed water spray irrigation area; a
1.2 acre irrigation and storage pond with approximately 1.5 MG of effective storage (as previously
stated, an additional 9.8 MG of wet -weather storage for the Reserve Club at St. James is allocated via
excess disposal capacity included in the NMI infiltration pond); an irrigation flow meter; and all
associated piping, valves, controls, and appurtenances; the
continued operation of a 3.26 MGD high -rate infiltration system consisting of:
➢ the 846,500 GPD IP Tract high -rate infiltration system consisting of. nine high -rate infiltration basins
with a cumulative area of 13.88 acres; 14,167 LF of 8-inch perforated PVC groundwater lowering drain
with clay anti -seep collars, in -line clean outs, and a PVC membrane curtain; three groundwater
lowering pump stations each with two 650 GPM submersible dewatering pumps and a magnetic flow
meter; and all associated piping, valves, controls, and appurtenances;
➢ the 1,850,000 GPD Mercer Mill (MM) high -rate infiltration system consisting of. two high -rate
infiltration basins with a cumulative area of 12.55 acres; 6,088 LF of 10-inch perforated PVC
groundwater lowering drain with clay anti -seep collars and in -line clean outs; two groundwater
lowering pump stations each with two 1,300 GPM submersible dewatering pumps and a magnetic flow
meter; and all associated piping, valves, controls, and appurtenances; and
➢ the 559,928 GPD Clemmons Tract (CT) high -rate infiltration system consisting of. two high -rate
infiltration basins with a cumulative area of 2.07 acres; 3,043 LF of 8 to 12-inch perforated PVC
groundwater lowering drain with sand backfill, clay anti -seep collars, and in -line clean outs; a PVC
membrane curtain with a v-notch weir and ultrasonic meter; and all associated piping, valves, controls,
and appurtenances
to serve the West Brunswick Regional WRF, with no discharge of wastes to surface waters, pursuant to the
application received June 3, 2022, subsequent additional information received September 26, 2022, and in
conformity with the Division -approved plans and specifications considered a part of this permit.
This permit shall be effective from the date of issuance through December 31, 2029, shall replace Permit
No. WQ0023693 issued October 28, 2019, and shall be subject to the following conditions and limitations:
I. SCHEDULES
1. The Permittee shall request renewal of this permit on Division -approved forms no later than July 4,
2029. [15A NCAC 02T .0105(b), 02T .0109]
WQ0023693 Version 4.0 Shell Version 200201 Page 3 of 15

IL PERFORMANCE STANDARDS
1. The Permittee shall maintain and operate the subject reclaimed water generation, distribution, dedicated
utilization, and high -rate infiltration facilities so there is no discharge to surface waters, nor any
contravention of groundwater or surface water standards. In the event the facilities fail to perform
satisfactorily, including the creation of nuisance conditions due to improper operation and maintenance,
the Permittee shall take immediate corrective actions, including Division required actions, such as the
construction of additional or replacement reclaimed water generation, distribution, dedicated
utilization, and high -rate infiltration facilities, or cessation of reclaimed water distribution. [15A
NCAC 02T .0108(b)(1)(A)]
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [15A NCAC 02T .0108(b)(1)(A)]
3. Groundwater monitoring wells shall be constructed in accordance with 15A NCAC 02C .0108
(Standards of Construction for Wells Other than Water Supply), and any other jurisdictional laws and
regulations pertaining to well construction. [ 15A NCAC 02C .0108]
4. The wastewater collection facilities shall be properly maintained and operated at all times. The
Permittee shall maintain compliance with an individual system -wide collection system permit (Permit
No. WQCS00284) for the operation and maintenance of these facilities. [15A NCAC 02T .0400]
5. Effluent limitations for generated reclaimed water shall not exceed those specified in Attachment A.
[15A NCAC 02T .0705(b), 02U .0301]
6. Application rates shall not exceed those specified in Attachment B. [15A NCAC 02T .0705(m), 02U
.0401(g)]
7. All reclaimed water valves, storage facilities, and outlets shall be tagged or labeled to warn the public
or employees that the water is not intended for drinking. [15A NCAC 02U .0403(b)]
8. All reclaimed water piping, valves, outlets, and other appurtenances shall be color -coded, taped, or
otherwise marked to identify the source of the water as being reclaimed water as follows:
a. All reclaimed water piping and appurtenances shall be either colored purple (Pantone 522 or
equivalent) and embossed or integrally stamped or marked "CAUTION: RECLAIMED WATER -
DO NOT DRINK" or be installed with a purple (Pantone 522 or equivalent) identification tape or
polyethylene vinyl wrap. The warning shall be stamped on opposite sides of the pipe and repeated
every three feet or less;
b. Identification tape shall be at least three inches wide and have white or black lettering on purple
(Pantone 522 or equivalent) field stating "CAUTION: RECLAIMED WATER - DO NOT
DRINK". Identification tape shall be installed on top of reclaimed water pipelines, fastened at least
every 10 feet to each pipe length and run continuously the entire length of the pipe; and
c. Existing underground distribution systems retrofitted for the purpose of convey reclaimed water
shall be taped or otherwise identified as noted in IL8.a. and II.8.b. This identification need not
extend the entire length of the distribution system but shall be incorporated within 10 feet of
crossing any potable water supply line or sanitary sewer line.
[15A NCAC 02U .0403(c)]
9. All reclaimed water valves and outlets shall be of a type, or secured in a manner, that permits operation
by personnel authorized by the entity that operates the reclaimed water system. [15A NCAC 02U
.0403(d)]
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10. Hose bibs shall be located in locked, below grade vaults that shall be labeled as being of non -potable
quality. As an alternative to the use of locked vaults with standard hose bib services, other locking
mechanisms such as hose bibs that can only be operated by a tool may be placed above ground and
labeled as non -potable water. [15A NCAC 02U .0403(e)]
11. There shall be no direct cross -connections between the reclaimed water and potable water systems,
unless such connection has been approved by the Department pursuant to 15A NCAC 18C .0406. [15A
NCAC 02U .0403(f)]
12. Reclaimed water distribution lines shall be located at least 5 feet horizontally from and 18 inches below
any water line if practicable. If these separation distances cannot be met, the piping and integrity testing
procedures shall meet water main standards in accordance with 15A NCAC 18C. [15A NCAC 02U
.0403(g), 02U .0403(h)]
13. Reclaimed water distribution lines shall not be less than 50 feet from a well unless the piping and
integrity testing procedures meet water main standards in accordance with 15A NCAC 18C, but in no
case shall they be less than 25 feet from a private well. [15A NCAC 02U .0403(g), 02U .0403(i)]
14. Reclaimed water distribution lines shall meet the separation distances to sewer lines in accordance with
15A NCAC 02T .0305. [15A NCAC 02U .0403(g), 02U .04030)]
15. Reclaimed water irrigation fields permitted prior to September 1, 2006 (i.e., West Brunswick Drip
Facility, the Members Club at St. James, and the Carolina National Golf Course) have compliance and
review boundaries established at the property boundary. Any exceedance of groundwater standards at
or beyond the compliance boundary shall require corrective action. Division -approved relocation of
the compliance boundary shall be noted in Attachment B. Multiple contiguous properties under
common ownership and permitted for use as a disposal system shall be treated as a single property with
regard to determination of a compliance boundary. [15A NCAC 02L .0106, 02T .0105(h), 02H
.0219(k)(1)(C)(1)(III), G.S. 143-215.1(1), G.S. 143-215.1(k)]
16. Reclaimed water irrigation fields permitted on or after September 1, 2006 (i.e., IP Tract, Mercer Mill,
and the Reserve Club at St. James) have compliance and review boundaries established at the irrigation
area boundaries. Any exceedance of groundwater standards at or beyond the compliance boundary
shall require corrective action. Division -approved relocation of the compliance boundary shall be noted
in Attachment B. Multiple contiguous properties under common ownership and permitted for use as a
disposal system shall be treated as a single property with regard to determination of a compliance
boundary. [15A NCAC 02L .0106, 02T .0105(h), 02U .0501(a)(6), G.S. 143-215.1(1), G.S. 143-
215.1(k)]
17. High -rate infiltration sites permitted on or after December 30, 1983 (i.e., IP Tract, Mercer Mill, and
Clemmons Tract) have a compliance boundary that is either 250 feet from the infiltration area, or 50
feet within the property boundary, whichever is closest to the infiltration area. Any exceedance of
groundwater standards at or beyond the compliance boundary shall require corrective action. Division -
approved relocation of the compliance boundary shall be noted in Attachment B. Multiple contiguous
properties under common ownership and permitted for use as a disposal system shall be treated as a
single property with regard to determination of a compliance boundary. [15A NCAC 02L .0106(d)(2),
02L .0107(b), 02T .0105(h), G.S. 143-215.1(1), G.S. 143-215.1(k)]
18. The review boundary for high -rate infiltration sites (i.e., IP Tract, Mercer Mill, and Clemmons Tract)
is midway between the compliance boundary and the infiltration area. Any exceedance of groundwater
standards at or beyond the review boundary shall require preventative action. [15A NCAC 02L
.0106(d)(1), 02L .0108]
19. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary (i.e., parcel subdivision). [ 15A NCAC
02L .0107(c)]
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20. No wells, excluding Division -approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [I5A NCAC 02L .0107]
21. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the
Brunswick County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[I5A NCAC 02L .0107(f)]
22. The Water Reuse Agreement (attached) between the Troon St. James, LLC, CGNC LLC, and
Brunswick County shall remain in full effect for the life of this permit. No modifications to this
agreement shall be made without prior approval from the Division of Water Resources. [15A NCAC
02T .0108(b)(1)(A)]
23. The facilities herein were permitted per the following setbacks:
a. The reclaimed water irrigation sites at West Brunswick Drip Irrigation Facility were originally
permitted April 16, 2004. The setbacks for drip irrigation sites originally permitted or modified
from June 1, 1996 to August 31, 2006 are as follows (all distances in feet):
i. Surface waters classified SA:
100
ii. Surface waters not classified SA:
25
iii. Each water supply well:
100
iv. Each non -potable well:
10
v. Each swimming pool:
25
[I5A NCAC 02H .0219(k)(1)(C)(1)]
b. The infiltration sites at Carolina National Golf Course were originally permitted April 1, 2005. The
setbacks for infiltration sites originally permitted or modified as a reclaimed water system from
June 1, 1996 to September 1, 2006 are as follows (all distances in feet):
i. Surface waters classified SA: 100
ii. Surface waters classified non -SA: 25
iii. Each water supply well: 100
iv. Each non -potable well: 10
[15A NCAC 02H .0219(k)]
c. The reclaimed water irrigation sites at IP Tract and Mercer Mill were originally permitted March
3, 2008. The reclaimed water irrigation sites at the Reserve Club at St. James and the Members
Club at St. James were originally permitted March 3, 2010. The setbacks for spray irrigation sites
originally permitted or modified from September 1, 2006 to June 17, 2011 are as follows (all
distances in feet):
Surface waters classified SA:
ii. Surface waters not classified SA:
iii. Each well with exception of monitoring wells:
[15A NCAC 02T .0912(b)]
100
25
100
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d. The infiltration sites at IP Tract were originally permitted March 3, 2008. The infiltration sites at
Mercer Mill were modified December 19, 2017. The infiltration sites at Clemmons Tract were
originally applied for May 1, 2018. The setbacks for infiltration sites originally permitted or
modified from September 1, 2006 to August 31, 2018 and meeting the October 27, 2006 High -Rate
Infiltration Policy are as follows (all distances in feet):
I. Each habitable residence or place of assembly under separate ownership: 1001
ii. Each habitable residence or place of assembly owned by the Permittee: 50
iii. Each private or public water supply source: 100
iv. Surface waters: 1003
v. Groundwater lowering ditches: 1003
vi. Surface water diversions: 50
vii. Each well with exception of monitoring wells:
100
viii. Each property line:
50 Z
ix. Top of slope of embankments or cuts of two feet or more in vertical height:
100
x. Each water line:
10
xi. Subsurface groundwater lowering drainage systems:
1003
xii. Each swimming pool:
100
xiii. Public right of way:
50
xiv. Nitrification field:
20
xv. Each building foundation or basement:
15
xvi. Each impounded public surface water supply:
500
xvii. Each public shallow ground water supply (less than 50 feet deep):
500
' Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
3 Setbacks to surface waters, groundwater lowering ditches, and subsurface groundwater
lowering drainage systems have been reduced from 200 to 100 feet because the treatment units
are designed to meet a Total Nitrogen of 7 mg/L and a Total Phosphorus of 3 mg/L.
[15A NCAC 02T .0706(a), 02T .0706(b), 02T .0706(f), 02T .0706(g)]
e. The storage and treatment units were modified March 3, 2008. The setbacks for storage and
treatment units originally permitted or modified from September 1, 2006 to June 17, 2011 are as
follows (all distances in feet):
I. Each habitable residence or place of assembly under separate ownership: 1001
ii. Each private or public water supply source: 100
iii. Surface waters: 50
iv. Each well with exception of monitoring wells: 100
v. Each property line: 50
' Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02T .0912(a)]
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III. OPERATION AND MAINTENANCE REQUIREMENTS
1. The Permittee shall operate and maintain the subject facilities as anon -discharge system. [15A NCAC
02T .0700, 02U .0101]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include:
a. A description of the operation of the system in detail to show what operations are necessary for the
system to function and by whom the operations are to be conducted;
b. A sampling and monitoring plan to evaluate quality of reclaimed water within the distribution
system to provide quality assurance at the time of reuse, and specify actions to be taken in response
to unsatisfactory monitoring results;
c. A map of all reclaimed water distribution lines;
d. A description of anticipated maintenance of the system;
e. Provisions for safety measures, including restriction of access to the site and equipment; and
f. Spill control provisions that include response to upsets and bypasses, including control,
containment, and remediation, and contact information for personnel, emergency responders, and
regulatory agencies;
[15A NCAC 02T .0707(a), 02U .0801(a)]
Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, the Permittee shall designate and employ a certified
operator in responsible charge (ORC), and one or more certified operators as back-up ORCs. The ORC
or their back-up shall operate and visit the facilities as required by the WPCSOCC. [15A NCAC 02T
.0117]
4. An operator certified by the Water Pollution Control System Operators Certification Commission
(WPCSOCC) of a grade equivalent or greater than the facility classification shall be on call 24 hours
per day. [15A NCAC 02U .0401(e)]
5. The Permittee shall maintain vegetative cover on the irrigation sites, such that crop health is optimal,
allows even effluent distribution, and allows inspection of the irrigation system. [15A NCAC 02U
.0801(b)]
6. The Permittee shall take measures to prevent effluent ponding in or runoff from the irrigation sites
listed in Attachment B. [15A NCAC 02U .0801(c)]
7. The Permittee shall not irrigate treated effluent during inclement weather, or when the soil is in a
condition that will cause ponding or runoff. [15A NCAC 02U .0401(k)]
8. Irrigation and infiltration equipment shall be tested and calibrated once per permit cycle. [15A NCAC
02T .0707(d), 02U .0801(d)]
9. Only reclaimed water generated from the West Brunswick Regional WRF shall be irrigated or
infiltrated on the sites listed in Attachment B or conveyed in the reclaimed water distribution facilities
permitted herein. [15A NCAC 02T .0701, 02U .0101]
10. The Permittee shall not allow vehicles or heavy machinery on the irrigation or infiltration area, except
during equipment installation or maintenance activities. [15A NCAC 02T .0707(e), 02U .0801(e)]
11. The Permittee shall prohibit public access to the wastewater treatment, storage, and infiltration
facilities. [15A NCAC 02T .0705(p), 02U .0402(e)]
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12. Public access to reclaimed water utilization sites shall be controlled during active site use. Such
controls may include the posting of signs showing the activities being conducted at each site. [15A
NCAC 02U .0501(a)(2)]
13. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [ 15A NCAC
02T .0708, 02T .1100, 02U .0802].
14. The Permittee shall not divert or bypass untreated or partially treated reclaimed water from the subject
facilities. [15A NCAC 02T .0705(i), 02U .0402(g)]
15. Freeboard in the reclaimed water irrigation and storage ponds, the high -rate infiltration basins, and the
five day upset pond shall not be less than two feet at anytime. [ 15A NCAC 02T .0705(c), 02U .0401(h)]
16. Gauges to monitor water levels in the reclaimed water irrigation and storage ponds, the high -rate
infiltration basins, and the five day upset pond shall be provided. These gauges shall have readily
visible permanent markings, at inch or tenth of a foot increments, indicating the following elevations:
maximum liquid level at the top of the temporary liquid storage volume; minimum liquid level at the
bottom of the temporary liquid storage volume; and the lowest point on top of the dam. [15A NCAC
02T .0707(f), 02U .0801(f)]
17. A protective vegetative cover shall be established and maintained on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., outside toe of embankment to
maximum allowable temporary storage elevation on the inside of the embankment). Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankments shall be kept mowed or otherwise controlled and accessible. [ 15A NCAC 02T .0707(g),
02U .0801(g)]
18. Metering equipment shall be tested and calibrated annually. [15A NCAC 02T .0707(d), 02U .0801(d)]
19. An automatically activated standby power source capable of powering all essential treatment units shall
be on site and operational at all times. If a generator is employed as an alternate power supply, it shall
be tested weekly by interrupting the primary power source. [15A NCAC 02T .0705(k), 02U .0401(d)]
20. Continuous online monitoring and recording for turbidity or particle count and flow shall be provided
prior to storage, distribution, or utilization of reclaimed water. [15A NCAC 02U .0401(b)]
21. If turbidity exceeds 10 NTUs or if the permitted pathogen levels cannot be met, all effluent shall be
routed to the five day upset pond until the problems associated with the reclaimed water generation
system have been corrected. The water in the five day upset pond shall be pumped back to the treatment
plant headworks for re -treatment or treated in the five day upset pond prior to utilization. [ 15A NCAC
02U .0402(d)]
22. The Permittee shall provide notification to the public and its employees about the use of reclaimed
water, and that reclaimed water is not intended for drinking. Such notification shall be provided to
employees in a language they can understand. [15A NCAC 02U .0501(a)(2)]
23. The Permittee shall develop and implement an education program to inform users and its employees
about the proper use of reclaimed water. Educational material shall be provided to all residents and/or
other facilities provided with reclaimed water, and these materials shall be maintained consistent with
the reclaimed water uses. All educational materials shall be made available to the Division upon
request. [15A NCAC 02U .0501(a)(4)]
24. The infiltration areas shall be cleaned at least once per permit cycle to remove deposited materials that
may impede the infiltration process. Cleaning records shall be maintained at the facility for five years,
and shall be made available to the Division upon request. The Wilmington Regional Office, telephone
number [phone], shall be notified prior to each cleaning. [15A NCAC 02T .0707(h)]
WQ0023693 Version 4.0 Shell Version 200201 Page 9 of 15

25. Approximately 9.8 MG of wet weather storage for the reclaimed water irrigation system at the Reserve
Club is provided via excess disposal capacity that is available in infiltration pond NMI at the Mercer
Mill site. Future requests to allow wet weather storage to be allocated within the infiltration basins at
the Mercer Mill site and/or the IP Tract will not be approved unless adequate operational data can be
provided to document that the infiltration basins are functioning effectively at the permitted loading
rates, and that the existing pumps and piping are sized adequately to accommodate the effluent transfer.
[I5A NCAC 02T .0 1 08(b)(1)(A)]
IV. MONITORING AND REPORTING REQUIREMENTS
The Permittee shall conduct and report any Division required monitoring necessary to evaluate this
facility's impact on groundwater and surface water. [15A NCAC 02T .0108(c)]
2. A Division -certified laboratory shall conduct all analyses for the required effluent, groundwater, and
surface water parameters. [15A NCAC 02H .0800]
3. Flow through the treatment facility shall be continuously monitored, and daily flow values shall be
reported on Form NDMR. Facilities with a permitted flow less than 10,000 GPD may estimate their
flow from water usage records provided the water source is metered. [15A NCAC 02T .0105(k), 02T
.0108(c)]
4. The Permittee shall monitor the generated reclaimed water at the frequencies and locations for the
parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
5. The Permittee shall maintain records tracking the amount of reclaimed water irrigated and infiltrated.
These records shall include the following information for each irrigation and infiltration site listed in
Attachment B:
a. Date of irrigation or infiltration;
b. Volume of reclaimed water irrigated or infiltrated;
c. Site irrigated or infiltrated;
d. Length of time site is irrigated or infiltrated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings (for irrigation
sites only);
f. Continuous monthly and year-to-date loadings for any non -hydraulic parameter specifically
limited in Attachment B (for irrigation sites only);
g. Loading rates to each infiltration site listed in Attachment B;
h. Weather conditions; and
i. Maintenance of cover crops (for irrigation sites only).
[I5A NCAC 02T .0108(c)]
6. Freeboard (i.e., water level to the lowest embankment elevation) in the reclaimed water irrigation and
storage ponds, the high -rate infiltration basins, and the five day upset pond shall be measured to the
nearest inch or tenth of a foot, and recorded weekly. Weekly freeboard records shall be maintained for
five years, and shall be made available to the Division upon request. [15A NCAC 02T .0108(c)]
WQ0023693 Version 4.0 Shell Version 200201 Page 10 of 15

7. Three copies of all monitoring data (as specified in Conditions IV.3. and IVA.) on Form NDMR for
each PPI, three copies of all operation and disposal records (as specified in Conditions IV.5. and IV.6.)
on Form NDAR-1 for every irrigation site in Attachment B, three copies of all operation and disposal
records (as specified in Conditions IV.5. and IV.6.) on Form NDAR-2 for every infiltration site in
Attachment B shall be submitted on or before the last day of the following month. If no activities
occurred during the monitoring month, monitoring reports are still required documenting the absence
of the activity. All information shall be submitted to the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[I5A NCAC 02T .0105(1)]
8. Pursuant to G.S. 143-215.1C(a), the Permittee shall provide to its users and the Division of Water
Resources an annual report summarizing the performance of the reclaimed water generation, dedicated
utilization, distribution, and high -rate infiltration facility and the extent to which the facility has violated
this permit, or federal or State laws, regulations, or rules related to the protection of water quality. This
report shall be prepared on either a calendar or fiscal year basis and shall be provided no later than 60
days after the end of the calendar or fiscal year. Two copies of the annual report provided to the
Permittee's users shall be submitted to:
Division of Water Resources
Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[G. S. 143-215.1 C(a)]
9. The Permittee shall maintain a record of all residuals removed from this facility. This record shall be
maintained for five years, and shall be made available to the Division upon request. This record shall
include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[15A NCAC 02T .0708(b), 02U .0802(b)]
10. The Permittee shall develop and maintain a routine review and inspection program for offsite users of
dedicated reclaimed water. An inspection log shall be maintained for five years, and shall be made
available to the Division upon request. This log shall include:
a. Visual observations of the reclaimed water user sites; and
b. Record of preventative maintenance (e.g., pump and valve maintenance, cross connection control,
etc.).
[15A NCAC 02U .0801(i)]
WQ0023693 Version 4.0 Shell Version 200201 Page 11 of 15

11. A maintenance log shall be kept at this facility. This log shall be maintained for five years, and shall
be made available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration;
b. Date of irrigation and infiltration equipment calibration;
c. Date of turbidimeter calibration;
d. Date and results of power interruption testing on alternate power supply;
e. Visual observations of the plant and plant site;
f Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.); and
g. Record of all discharges of reclaimed water to surface waters or the land surface, including the date
of occurrence, estimated volume, and corrective action taken.
[15A NCAC 02T .0707(i), 02U .0801(h)]
12. Monitoring well MW-7 shall be sampled at the frequencies and for the parameters specified in
Attachment C. All mapping, well construction forms, well abandonment forms and monitoring data
shall refer to the permit number and the well nomenclature as provided in Attachment C and Fib
[15A NCAC 02T .0105(m)]
13. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW-59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW-59)
shall include this permit number, the appropriate well identification number, and one GW-59a
certification form shall be submitted with each set of sampling results. All information shall be
submitted to the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(m)]
WQ0023693 Version 4.0 Shell Version 200201 Page 12 of 15

14. Noncompliance Notification:
The Permittee shall report to the Wilmington Regional Office, telephone number [phone],
within 24 hours of first knowledge of the following:
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, etc.) rendering the facility incapable of
adequate wastewater treatment.
c. Any failure rendering the reclaimed water distribution facilities incapable of adequately conveying
the reclaimed water (e.g., mechanical or electrical failures, line blockages or breaks, etc.).
d. Any failure resulting in a discharge untreated or partially treated wastewater to surface waters.
e. Any failure resulting in a discharge of reclaimed water directly to surface waters or any unpermitted
release of reclaimed water to land surface greater than or equal to 5,000 gallons. Unpermitted
releases less than 5,000 gallons to land surface shall be documented by the Permittee in accordance
with Condition IV.1 l.g. but do not require Regional Office notification.
f Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
g. Ponding in or runoff from the irrigation sites.
h. Effluent breakout from the infiltration sites.
Emergencies requiring reporting outside normal business hours shall call the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. All
noncompliance notifications shall file a written report to the Wilmington Regional Office within five
days of first knowledge of the occurrence, and this report shall outline the actions proposed or taken to
ensure the problem does not recur. [15A NCAC 02T .0108(b)(1)(A)]
V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the reclaimed
water generation, distribution, utilization, and infiltration facilities. [15A NCAC 02U .0801(1), 15A
NCAC 02T .07070)]
2. The Permittee shall inspect the reclaimed water generation, distribution, utilization, and infiltration
facilities to prevent malfunctions, facility deterioration, and operator errors that may result in discharges
of wastes to the environment, threats to human health, or public nuisances. The Permittee shall maintain
an inspection log that includes the date and time of inspection, observations made, and maintenance,
repairs, or corrective actions taken. The Permittee shall maintain this inspection log for a period of five
years from the date of the inspection, and this log shall be made available to the Division upon request.
[15A NCAC 02U .0801(h), 15A NCAC 02U .0801(i), 15A NCAC 02T .0707(i), 15A NCAC 02T
.07070)]
Division authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the reclaimed water generation, distribution, utilization, and
infiltration facilities permitted herein at any reasonable time for determining compliance with this
permit. Division authorized representatives may inspect or copy records maintained under the terms
and conditions of this permit, and may collect groundwater, surface water, or leachate samples. [G.S.
143-215.3(a)(2)]
WQ0023693 Version 4.0 Shell Version 200201 Page 13 of 15

VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to a
Division enforcement action. [G.S. 143-215.6A, 143-215.613, 143-215.6C]
2. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, and Division -approved plans and specifications. [G.S. 143-215.1(d)]
3. Unless specifically requested and approved in this permit, there are no variances to administrative codes
or general statutes governing the construction or operation of the facilities permitted herein. [15A
NCAC 02T .0105(n)]
4. The issuance of this permit does not exempt the Permittee from complying with all statutes, rules,
regulations, or ordinances that other jurisdictional government agencies (e.g., local, state, and federal)
may require. [15A NCAC 02T .0105(c)(6)]
5. If the permitted facilities change ownership, or the Permittee changes their name, the Permittee shall
submit a permit modification request on Division -approved forms. The Permittee shall comply with
all terms and conditions of this permit until the permit is transferred to the successor -owner. [G.S. 143-
215.1(d3)]
6. The Permittee shall retain a set of Division -approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0105(o)]
7. The Permittee shall maintain this permit until the proper closure of all facilities permitted herein, or
until the facilities permitted herein are permitted by another authority. [15A NCAC 02T .01050)]
8. This permit is subject to revocation or modification upon 60-day notice from the Division Director, in
whole or part for:
a. violation of any terms or conditions of this permit or Administrative Code Title 15A Subchapter
02U and 02T;
b. obtaining a permit by misrepresentation or failure to disclose all relevant facts;
c. the Permittee's refusal to allow authorized Department employees upon presentation of credentials:
I. to enter the Permittee's premises where a system is located or where any records are required
to be kept;
ii. to have access to any permit required documents and records;
iii. to inspect any monitoring equipment or method as required in this permit; or
iv. to sample any pollutants;
d. the Permittee's failure to pay the annual fee for administering and compliance monitoring; or
e. a Division determination that the conditions of this permit are in conflict with North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]
WQ0023693 Version 4.0 Shell Version 200201 Page 14 of 15

9. Unless the Division Director grants a variance, expansion of the facilities permitted herein shall not
occur if any of the following apply:
a. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has been convicted of
environmental crimes under G.S. 143-215.613, or under Federal law that would otherwise be
prosecuted under G.S. 143-215.613, and all appeals of this conviction have been abandoned or
exhausted.
b. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has previously abandoned
a wastewater treatment facility without properly closing the facility.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and all appeals of this penalty have been abandoned or exhausted.
d. The Permittee or any parent, subsidiary, or other affiliate of the Permittee is currently not compliant
with any compliance schedule in a permit, settlement agreement, or order.
e. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid an annual
fee.
[15A NCAC 02T .0120(b), 02T .0120(d)]
10. This permit shall not be renewed if the Permittee or any affiliation has not paid the required annual fee.
[15A NCAC 02T .0120(c)]
Permit issued this the 19th day of December 2022
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Richard E. Rogers, Jr., Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0023693
WQ0023693 Version 4.0 Shell Version 200201 Page 15 of 15

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>Ad

NORTH CA.ROLINA
BRUNSWICK COUNTY
REUSE WATER AGREEMENT
THIS AMENDED REUSE WATER AGREEMENT (the "Agreement") is made effective
as of January 5, 2004, by and between Bluegreen Carolina Lands, LLC, a Delaware limited
liability company ("Bluegreen Carolina Lands"), Bluegreen Golf Clubs, Inc., a Delaware
Corporation ("Bluegreen Golf Clubs'), and Brunswick County, a county of the State of North
Carolina (the "County').
WITNESSETH:
WHEREAS, Bluegreen Golf Clubs owns a twenty seven -hole golf course known as
Carolina National Golf Club in the development known as Winding River Plantation in Bolivia,
Brunswick County, North Carolina;
WHEREAS, pursuant to that Sewer Service Agreement dated September 27, 2002,
among the County, Bluegreen Carolina Lands, Bluegreen Golf Clubs and the Winding River
Community Association ("Sewer Service Agreement"), the County has acquired and now
operates a wastewater treatment facility with a design capacity of 100,000 gallons per day
("GPD") serving Winding River Plantation; AIM
:�I
WHEREAS, pursuant to the Sewer Service Agreement the County has agreed to expand
the Winding River Facility if needed, but the County intends to construct a facility to be known
as the West Brunswick Regional Wastewater Treatment Facility (the "Regional Facility") and to
transfer all wastewater inflow from the Winding River Facility to the Regional Facility, such
transfer to be made, if possible, before the existing Winding River Facility reaches an operating
capacity at which construction of an expansion would be necessary;
WHEREAS, pursuant to the Sewer Service Agreement., the County agreed to supply
treated effluent reuse water from the Winding River Facility or the Regional Facility to irrigate
the Golf Courses, and the Golf Course Owners agreed to accept such reuse water up to an agreed
quantity; and pursuant to that Reuse Water Agreement dated September 27, 2002 by and
between the Bluegreen Carolina Lands, Bluegreen Golf Clubs and the County, the parties agreed
on certain additional matters regarding the provision and acceptance of reuse water and the
operation and maintenance of irrigation facilities; and
WHEREAS.= in -connection with -the County-'s--permit-a�plications,-DVI�Q-.is rewiring -that
the 2002 Reuse Water Agreement be amended to include certain provisions regarding operation
of the irrigation facilities, sampling of effluent, record keeping, enforcement and civil penalties,
and the parties hereto have agreed to amend and restate the 2002 Reuse Water Agreement
accordingly and to make certain other clarifications as hereinafter set forth.
NOW, THEREFORE, for good and .valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as fo:lows:
11 inding River aluegreen Rime %1 atcr Agrcernem [ Dmfcl) 12.17-0

1. Prior A eements. The 2002 Reuse Water Agreement is hereby amended,
restated, superseded and replaced in its entirety by this Agreement. The Sewer Service
Agreement shall remain in effect.
2. Provision and Acceptance of Meuse Water. Until completion of the irrigation
system on the Carolina National Course, the County shall pump all reuse water from the
Winding River Facility to the existing irrigation ponds on the Carolina National Course. The
Bluegreen Golf Clubs shall accept such reuse water for irrigation of the Carolina National Golf
Club Course, or portions thereof. Upon connection to the Winding River Facility or the Regional
Facility, the County shall supply reuse water to Bluegreen Golf Clubs, and Bluegreen Golf Clubs
shall accept such reuse water for irrigation of the Golf Courses. Bluegreen Golf Clubs agree to
accept an average of up to 500,000 GPD of reuse water for irrigation of the Golf Courses, with
the allocation of such amount between the courses to be determined by Bluegreen Golf Clubs in
accordance with required permits. Bluegreen Golf Clubs shall cooperate with the County to
determine the feasibility of accepting more than 500,000 GPD for irrigation of the golf courses.
Bluegreen Golf Clubs and the County shall cooperate to modify or obtain required permits for
irrigation of the golf courses in accordance with this Agreement.
3. Stara/Transfer Pond and Reuse Water Lines. Pursuant to section 3 of the First
Amendment to the Agreement for Conveyance of the Sewer System, Bluegreen Carolina Lands
shall provide, without cost to the County, an easement for use of the wet weather
storage/transfer pond to receive reuse water from the Regional Facility, and necessary easements
for a reuse water line from said pond to the golf course and to the existing reuse water line at the
Winding River Facility (the existing line currently transports reuse water from the Winding
River Facility to an irrigation pond on the Carolina National Golf Club Course).
4. 012eration and Maintenance of Irrigation Facilities. The Bluegreen Golf Clubs
shall own, operate and maintain the existing irrigation ponds located on the Carolina National
Golf Club Course, and the irrigation lines, pipes, pumps and other equipment used to irrigate the
golf course. The Bluegreen Golf Club shall provide a certified spray irrigation operator at all
times in accordance with I 5A NCAC SG, including site visitation requiremerim The Bluegreen
Golf Clubs shall spray an average of up to 500,000 GPD of reuse water on the Golf Courses,
subject to applicable permit limitations on irrigation during inclement weather or when the
ground is in a condition that would cause runoff. The aesthetic desires or management of the
Golf Club shall not be justifiable reasons for violating permit conditions related to irrigation. In
the event that the Golf Club fails to operate and maintain its respective irrigation system so as to
provide for acceptance of reuse water in accordance with this Agreement, then the County shall
have a Jnght 'ta eriter-ITpetY the -Carolina National Golf' Club Course-io-perform such operation
and maintenance.
5. Permit Compliance, Record Keeping. Enforcement and Civil Penalties. The
County shall provide to the Golf Club copies of all permits, renewals, notices and
correspondence from DWQ or any other regulatory agency or authority with respect to the reuse
water and spray irrigation systems. All reuse water provided by the County shall meet the
requirements and standards of applicable law and permits. Bluegreen Golf Clubs shall have the
right to suspend acceptance of reuse water during any period in which the water does not meet
applicable requirements or standards. or mould endanger health or property. The County shall be
I1 iAing Rrver BhKprecn Itcon Wzlcr AgrcenVnt i Dratil ; 1:• 17 •e1?Pace 2 of 4

responsible for conducting all sampling and testing of the treated wastewater effluent, as required
by applicable permits. The irrigation operator shall maintain records regarding irrigation of the
golf courses, as required by applicable permits, and such information shall be provided to the
County in a timely manner. The County shall be responsible for maintaining records regarding
reuse water inflow to the storageltmnsfer pond, and for submitting all required reports regarding
such reuse water to DWQ. In the event that a civil penalty is assessed against the County by
DWQ for any alleged permit violation for which Bluegreen Golf Clubs is responsible, Biuegreen
Golf Clubs shall remit the amount of the penalty to the County for payment to DWQ; provided
that the Golf Club shall have the right to contest any alleged violation and the County shall
cooperate for that purpose. The County shall pay any civil penalty that results from a permit
violation for which the County is responsible.
6. Reuse Water Charges. Section 3.2 (g) of the Sewer Service Agreement stipulates
that throughout the duration of the operation of the Winding River Facility, the County shall
provide reuse water without cost for irrigation of the Golf Club; and that when operation of the
Winding River Facility ceases and wastewater is transported to the Regional Facility, Brunswick
County small provide reuse water to Bluegreen Golf Clubs at a rate that shall not exceed the rate
established for all other similarly situated reuse customers at the prevailing rate for reuse water
in Brunswick County. Brunswick County shall provide reuse water to the Golf Club at a rate
that shall not exceed the direct cost of service of transporting such reuse water. All costs
incurred by the County for design, engineering, construction and installation of facilities and
equipment shall be part of the capital cost of the regional wastewater system and shall not be
considered costs of service for purposes of determining the reuse water rate. The reuse water rate
shall be reviewed annually in accordance with current law and adjusted as necessary to cover the
direct costs of such service, but shall in no event exceed the rate established for other similarly
situated reuse customers. Since irrigation needs vary based on the seasons and rainfall,
Brunswick County will consider requests from the Golf Club to waive, or reduce, the costs of the
treated effluent based on rainfall conditions that can be documented that the Golf Club accepted
effluent from the Vilest Regional System and irrigated the fairways of the golf courses when the
reuse water was not absolutely needed by the Golf Club. Justification for such a request to waive
reuse charges shall be based on total rainfall during a particular calendar month. When rainfall
exceeds 6.40 inches during the months of April, May, June, July, August, September or October,
or when rainfall exceeds 2.09 inches during the months of November, December, January,
February or March rased on a compilation and comparison of rainfall data recorded at the Golf
Club and readings recorded by the County at the West Regional Treatment Facility, the County
will receive requests from the Golf Club to waive effluent charges. The decision to grant a
request for the waiver of the monthly billing for reuse water shall be made unilaterally by the
Count} -based .on_the-aforementioned,data_
7. Term: Modification . The initial term of this Agreement shall be twenty-five (25)
years, and such term shall automatically be extended for successive periods of ten (10) years
unless terminated as hereinafier provided. Any party to this Agreement shall have the right to
terminate its obligations hereunder as of the expiration of the initial term or any extension
thereof by giving written notice to the other parties and to DWQ at least three years prior to such
expiration date. This Agreement may not be otherwise terminated, modified or amended without
the prior approval and consent of DWQ or other appropriate authority of the State of North
Carolina. Any modification or amendment shall be in writing specifically referring to this
11 ending Ritter Bimpern Rrusc WHIcr Agreement tDrafth 13-17-0-Pabe 3 of 4

Agreement and signed by the parties whose obligations are affected by such modification or
amendment.
} 9. Successors and AgigrLs. This Agreement shall be binding on and shall inure to
the benefit of the parties hereto and their respective successors in interest. Bluegreen Golf Clubs
shall have the right to convey all or portions of the Carolina National Golf Club Course without
the consent of Brunswick County, provided that any conveyance of any portion of Golf Club that
is permitted for reuse water irrigation shall be made subject to the provisions of this Agreement.
In the event that Bluegreen Golf Clubs conveys the entire portion of its Golf Club that is
permitted for reuse water irrigation, and such conveyance is made subject to this Agreement,
Bluegreen Golf Clubs shall have no further obligations hereunder. Otherwise, the parties hereto
shall not have the right to assign any of their obligations hereunder without the prior written
consent of the other parties.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written.
BLUEGREEN CAROLINA LANDS, LLC
By. 1---v Lwil
Daniel "r, Fresid�
BLLFGREEN G0JJF CLUBS, INC.
By:
�s
Daniel'46w4wr,-President
BRUNSWICK COUNTY
A&
By:
David R. Sandifer, Chairman
Board of Commissioners
"indm@ Ricer BIticgrern Ikeusr Wzler Apreemem iDrsild) 12-3i-o3Page 4 0f 4

Amended and Restated Reuse Water Agreement
THIS AMENDED AND RESTATED AGREEMENT (the "Agreement") is made
effective as of - , 2010, by and among The Members Club at St. James
Plantation, LLC [the "Me ere Club"), The Reserve Club at St. James Plantation, LLC (the
"Reserve CIub"), and Brunswick County (the "County").
WITNESSETH:
WHEREAS, the Members CIub owns an eighteen hole golf course known as the original
Member's CIub course (the "Members Course") in the development known as St. James
Plantation in the Town of St. James, Brunswick County, North Carolina; and the Reserve Club
owns an eighteen hole golf course known as the Reserve Club course in St, James (the "Reserve
Course") (the Members Course and the Reserve Course are referred to collectively as the "Golf
Courses") (the Members Club and Reserve Club are referred to collectively as the "Golf Course
Owners");
WHEREAS, the County previously operated a wastewater treatment facility to serve
portions of St. James Plantation located to the west of Beaver Dam Creek (the "St. James
Facility") (the portion of St. James Plantation located to the east of Beaver Dam Creek is served
by the Southeast Brunswick Sanitary District);
WHEREAS, the County has constructed a facility known as the West Brunswick
Regional Wastewater Treatment Facility (the "Regional Facility"), which receives all wastewater
inflow previously sent to the St. James Facility;
WHEREAS, pursuant to that Amended and Restated Reuse Water Agreement dated
December 1, 2003, by and between the Members CIub, St. James Development Co., LLC, and
the County (the "2003 Reuse Water Agreement"), the County agreed to supply treated effluent
reuse water from the St. James Facility or the Regional Facility to irrigate the Golf Courses, and
the Golf Course Owners agreed to accept such reuse water up to an agreed quantity, and the
parties agreed on certain additional matters regarding the provision and acceptance of reuse
water and the operation and maintenance of irrigation facilities; and
WHEREAS; -Pursuant to that Amended and Restated -Reuse Water -Agreement dated June
20, T005, by and between the Members Club, St. James Development Co., LLC, and the County
(the "Existing Reuse Water Agreement"), the Golf Course Owners agreed to accept additional
reuse water for irrigation, above the amount provided for in the 2003 Reuse Water Agreement,
and the parties agreed on certain additional matters regarding the provision and acceptance of
reuse water, the operation and maintenance of irrigation facilities and the construction of a
gravity flow reuse water line and storage pond with a surface area of approximately 3.8 acres at
the St. James Facility site (such line and pond are referred to collectively as the "Proposed
Facilities");
M937 I.DDc

WHEREAS, in lieu of constructing the Proposed Facilities, the Golf Course Owners have
proposed altering an existing irrigation pond on the Reserve Course near the St. James Facility
site (the "Existing Irrigation Pond") and the County has agreed to such proposal.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:
I. Prior A eement Restated. The Existing Reuse Water Agreement is hereby
amended, restated, superseded and replaced in its entirety by this Agreement.
2. Provision and Acce Lance of Reuse Water. Until completion of the irrigation
system on the Reserve Course, the County shall pump all reuse water from the Regional Facility
to the existing irrigation ponds on the Members Course, The Members Club shall accept such
reuse water for irrigation of the Members Course, or portions thereof, Upon completion of the
irrigation system on the Reserve Course and necessary connections to the Regional Facility, the
County shall supply reuse water to the Golf Course Owners, and the Golf Course Owners shall
accept such reuse water for irrigation of the Golf Courses, or portions thereof. The Golf Course
Owners agree to accept up to 954,397 GPD of reuse water for irrigation of the Golf Courses,
subject to applicable permit requirements, with the allocation of such amount between the
Members Course and the Reserve Course, and the portions of such Golf Courses to receive reuse
water, to be determined by the Golf Course Owners in accordance with applicable permit
requirements. Further, the Golf Course Owners shall have the right to transfer a portion of such
reuse water to other suitable areas in St. James. The Golf Course Owners and the County shall
cooperate to modify or obtain required permits for irrigation of the Golf Courses and/or other
areas in accordance with this Agreement.
3. Existina Pond and Reuse Water Lines. The Reserve Club shall provide necessary
easements for a reuse water line from Highway 211 to the Existing Irrigation Pond and for a
connection to the existing reuse water line to the irrigation ponds on the Members Course. The
County, at its expense, shall design, engineer, permit, construct, install, operate and maintain the
reuse water line from the Regional Facility to the Existing Irrigation Pond and the reuse water
line to the irrigation ponds on the Members Course. The County shall pay or reimburse the
Reserve Club for (i) the costs of design, engineering and permitting for the expansion of the
Existing Irrigation Pond to such size as reasonably determined by the Golf Course Owners to be
appropriate for their irrigation purposes, (ii) a reuse water pump station adjacent to the Existing
Irrigation Pond, and (iii) system features necessary for the Reserve Course irrigation, system to
use reuseWiileer. The Reserve Club shall construct the Reserve Course irrigation system, altering
the Existing Irrigation Pond, and construct the pump station adjacent thereto. The County shall
reimburse the Reserve Club for the actual costs of design, engineering and permitting of the
irrigation system and expansion of the Existing Irrigation Pond (currently estimated to be
$42,000). The County shall reimburse the Reserve Club $4.50 per cubic yard of material
excavated in the expansion of the Existing Irrigation Pond, such reimbursement to be made in
installments when the excavation is 50% and substantially completed. The County shall
reimburse the Reserve Club for the actual cost of the reuse water pump station (currently
estimated to be $114,800) upon substantial completion. Provided, reimbursement for all of the
work described in this Section shall not exceed $406,400, and all such work shall be completed
M937_I.noC Page 2 of 5

by July 31, 2010. For expenses to be reimbursed pursuant to this paragraph, the Reserve Club
shall submit a request for payment and documentation regarding completion, and the County
shall make payment within 30 days after receipt of such documentation. Within 60 days of the
date of this Agreement, the County will confirm to the Members Club and the Reserve Club that
the clay liner of the five day pond for the St, James Facility has been rendered safe for use for
residential purposes, including spreading. By December 31, 2009, the County will remove all
remaining pipes from the St. James Facility and the five day pond. The County will indemnify
the Members Club and the Reserve Club from all costs and liabilities related to such removal
work and the clay liner.
4. Operation d Maintenance of Irriaation Facilities. The Members Club shall
own, operate and maintain the irrigation ponds located on the Members Course, and the
irrigation lines, pipes, pumps and other equipment used to irrigate the Members Course. The
Reserve Club shall awn, operate and maintain the Existing Irrigation Pond, and the irrigation
lines, pipes, pumps and other equipment used to irrigate the Reserve Course. The Golf Course
Owners shall provide a certified spray irrigation operator at all times in accordance with 15A
NCAC 8G, including site visitation requirements. The Golf Course Owners shall spray an
average of up to 954,397 GPD of reuse water on the Golf Courses, subject to applicable permit
limitations on irrigation during inclement weather or when the ground is in a condition that
would cause runoff. The aesthetic desires or management of the Golf Courses shall not be
justifiable reasons for violating permit conditions related to irrigation. In the event that either of
the Golf Course Owners fails to operate and maintain its respective irrigation system so as to
provide for acceptance of reuse water in accordance with this Agreement, then the County shall
have the right to enter upon the Members Course and/or the Reserve Course, as the case may be,
to perform such operation and maintenance.
5. Permit Compliance, Record KeaVing, Enforcement and Civil Penalties. The
County shall provide to the Golf Course Owners copies of all permits, renewals, notices and
correspondence from DWQ or any other regulatory authority with respect to the reuse water and
spray irrigation systems. All reuse water provided by the County shall meet the requirements
and standards of applicable law and permits. The Golf Course Owners shall have the right to
suspend acceptance of reuse water during any period in which the water does not meet applicable
requirements or standards, or would endanger health or property. The County shall be
responsible for conducting all sampling and testing of the treated wastewater effluent, as required
by applicable permits. The irrigation operator shall maintain records regarding irrigation of the
Golf Courses, as required by applicable ennits, and such information shall be pmvided_to_the
County in a timely manner. The County shalt be responsible far- -maintaining records regarding
reuse water inflow to the Members Course and Reserve Course ponds, and for submitting all
required reports regarding such reuse water to DWQ. In the event that a civil penalty is assessed
against the County by DWQ for any alleged permit violation for which the Member Club and/or
Reserve Club is responsible, such responsible party shall remit the amount of the penalty to the
County for payment to DWQ; provided that such party shall have the right to contest any alleged
violation and the County shall cooperate for that purpose. The County shall pay any civil
penalty that results from a permit violation for which the County is responsible.
212957 1 DOC Page 3 of 5

6, Term,• Modifications. The initial term of this Agreement shall be 25 years, and
such term shall automatically be extended for successive periods of I o years unless terminated as
hereinafter provided. Any party to this Agreement shall have the right to terminate its
obligations hereunder as of the expiration of the initial term or any extension thereof by giving
written notice to the other parties and to DWQ at least three years prior to such expiration date.
This Agreement may not be otherwise terminated, modified or amended without the prior
approval and consent of DWQ or other appropriate authority of the State of North Carolina. Any
modification or amendment shall be in writing specifically referring to this Agreement and
signed by the parties whose obligations are affected by such modification or amendment.
7. Successors and Assigns. This Agreement shall be binding on and shall inure to
the benefit of the parties hereto and their respective successors in interest. The Golf Course
Owners shall have the right to convey all or portions of the Members Course and/or Reserve
Course, without the consent of Brunswick County, provided that any conveyance of any portion
of either Golf Course that is permitted by DWQ for reuse water irrigation shall be made subject
to the provisions of this Agreement. In the event that either Golf Course Owner conveys the
entire portion of its Golf Course that is permitted for reuse water irrigation, and such conveyance
is made subject to this Agreement, such Golf Course Owner shall have no further obligations
hereunder. Otherwise, the parties hereto shall not have the right to assign any of their obligations
hereunder without the prior written consent of the other parties.
S. Miscellaneous. This Agreement constitutes the entire understanding of the parties
hereto, revokes and supersedes all prior agreements between or among the parties hereto
(whether written or oral) with respect to the subject matter hereof, and is intended as a final
expression of their mutual understanding. No waiver by any party hereto of any default shall be
deemed a waiver of any prior or subsequent default under the same or other provisions of this
Agreement. This Agreement may be executed in any number of counterpart signature pages
(including facsimile counterpart signature pages), each of which shall be deemed an original and
all of which, taken together, shall constitute one and the same instrument. This Agreement shall
be governed by the laws of the State of North Carolina.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written.
The Members Club at St. James PIantation, LLC
By:
anager
The Reserve Club at St. James Plantation, LLC
By its Manager, Annapolis Management Co., LLC
By:
onager
222937_ 1-DOC Page 4 of 5

Brunswick County
By:
William M. Sue, Chairman
Board of Commissioners
This instrumcnl has horn preaudited In the manner rcquired by the Local Governrnent ljudgm and Fiscal Control Act.
a,L"— 6.
go-" A-4
Ahn B. Ifurdy, Finance Direct r
Brunswick County, Nonh Carolina
222937_I.DOC
Page 5 of 5

BrunswickIDunswick County Board of Commissioners
ACTION AGENDA ITEM
2005
TO: Marty IC. Lawing, County Manager AcnoN ITEM #:
MEETING DATE:
FROM: ,ferry, W. Pierce, RE, Dir. of Public Utilities DATE SuBmrrrED:
Ext. # 2659 Ex HiBrr Boos #:
ATTACHMENT #:
ISSUE/ACTION REQUESTED:
VIII-17
Nov, 7, 2005
Oct. 31, 2005
PUBLIC HEARING: ❑ YEs ® No
In the proposal submitted to the Town of Oak Island, Brunswick County Indicated that it would accept up to one
million gallons per day of wastewater from the Town upon completion of a force main from the Town to the
County's system and prior to completion of the wastewater treatment plant expansion. A Memorandum of
Understanding has been developed that outlines the terns under which the County will accept the wastewater and
the methods of calculating the operation and maintenance charges associated with the plant operation.
The County staff recommends approval of the Memorandum of Understanding and that the Chairman and Clerk be
authorized to execute the agreement on behalf of the County.
BACKGROUND/PURPOSE OF REQUEST:
In the proposal submitted to the Town of Oak Island, Brunswick County indicated that It would accept up to one
million gallons per day of wastewater from the Town upon completion of a force main from the Town to the
County's system and prior to completion of the wastewater treatment plant expansion. This proposal was
contingent upon the approval of a Sewer Service Agreement between the Town of Oak Island and Brunswick
County. Most of the provisions in the Sewer Service Agreement do not take effect until completion of the plant
expansion and associated improvements.
To facilitate the acceptance of the wastewater prior completion of those improvements, a separate agreement was
drafted. The Memorandum of Understanding outlines the terms under which the County will accept the wastewater
and the method that will be used to calculate the operation and maintenance costs that will be paid by the Town of
Oak Island. The operation and maintenance charges will be calculated the same for all entities discharging
wastewater to the West Brunswick Regional Wastewater Treatment Plant.
The agreement will become null and void upon completion of the plant expansion and associated Improvements
FISCAL IMPACT:
BUDGET AMENDMENT REQUIRED: ❑ YES ® NO
PRE-AUDrr CERTIFICATION REQUIRED): ❑ YES ® No
REVIEWED BY DIRECTOR OF )FISCAL OPERATIONS ® YES ❑ No
TOTAL COUNTY DOLLARS: $
CONTRACTS/AGREEMENTS:
REVIEWED BY CDUNTYATTORNEY.
ADVISORY BOARD RECOMMENDATION:
COUNTY MANAGER'S RECOMMENDATION:
® YES ❑ No ❑ N/A

Approve the Memorandum of Understanding between Brunswick County and the Town of Oak Island for
1,000,000GPD of Interim Wastewater Treatment Capacity.
ATTACHMENTS:
i. Copy of the Memorandum of Understanding.
2.
3.
ACTIQN OF THE BOARD OF COMMISSIONER,,,,5
APPRovED:
DENIED: ❑
DEFERRED UNTIL: f 1— Q 0
RETURNED To DEPARTMENT HEAD: SIGNA RE DATE
DATE
dAL�'"�' J�N.
Revised •2005Jan-31

1ovuH
r" CA90
_ '14Fp JUIV I.1-
October 31, 2005
Mr. Marty K. Lawing
County Manager `
P.Q. Box 249
Bolivia, NC 28422
Dear Mr. Lawing:
RECENED
Nov o 3 2005
BRUNS. C- ADM IN.
RECEIVED
V ED
NOV 15 2005
BRl NS- CO.
GOVERNING BODY
Enclosed please find five executed originals of the Sewer Service Agreement and other
associated documents between the Town of Oak Island and Brunswick County. his you
know, the Oak Island Town Council unanimously approved the Sewer Service
Agreement and associated documents at a special meeting October 24, 2005.
We look forward to working with the County on this project.
Sincerely,
Patricia H. Brunell, MMC
Town Clerk
Enclosures
4601 E. Oak Island Drive ■ Oak Island, North Carolina 28465
Phone: [phone] Fax: [phone] Websire; www.oakislandnc.com

MEMORANDUM OF UNDERSTANDING
SHORT TERM USE OF COUNTY'S TREATMENT CAPACITY IN THE WEST
BRUNSWICK REGIONAL WASTEWATER TREATMENT SYSTEM BY THE TOWN OF
OAK ISLAND
WHEREAS, Brunswick County has under construction a 3 million gallon per day tertiary
wastewater treatment plant and associated facilities known as the West Brunswick Regional
Wastewater Treatment System and the plant and associated facilities are scheduled to be
completed and placed into operation in early 2006, and
WHEREAS, per the Sewer Service Agreement with the Town of Holden Beach, Brunswick
County has been allocated two million gallons per day of capacity in the West Brunswick
Regional Wastewater Treatment System, and
WHEREAS, the Town of Oak Island and Brunswick County intend to enter into a Sewer Service
Agreement calling for wastewater from the Town of Oak Island be treated at the West
Brunswick Regional Wastewater Treatment Plant, and
WHEREAS, the West Brunswick Regional Wastewater Treatment Plant must be expanded from
3 million gallons per day to 6 million gallons per day to able to adequately treat the wastewater
from the Town of Oak Island and this expansion is expected to take two to three years to design,
receive permits and construct, and
WHEREAS, portions of the collection system in the Town of Oak Island and the sewer force
main from the Town of Oak Island to the West Brunswick Regional Wastewater System can be
completed prior to the completion of the wastewater treatment plant expansion, and
WHEREAS, Brunswick County expects to have wastewater flows in the next few years
significantly less than the County's allocated capacity in the West Brunswick Regional
Wastewater Treatment Plant of two million gallons per day and is willing to allow the Town of
Oak Island to use up to I million gallons per day of the unused allocated capacity at a rate not to
exceed 1,260 gallons per minute (gpm) for that period between the completion of a portion of the
Town of Oak Island collection system and associated force main to the West Brunswick
Regional Wastewater System and completion of the expansion of the West Brunswick Regional
Wastewater Treatment Plant to 6 million gallons per day.
IT SHALL BE THE MUTUAL UNDERSTANDING OF THE TOWN OF OAK ISLAND AND
BRUNSWICK COUNTY THAT;
The Town of Oak Island shall have Brunswick County's permission to use up to one million
gallon per day of its allocated capacity in the West Brunswick Regional Wastewater Treatment
Plant for that period from the completion of a portion of the collection system in the Town of
Oak Island and associated force main from the Town of Oak Island to the West Brunswick
1 of 3

Regional Wastewater System to the completion of the 3 million gallon per day expansion of the
West Brunswick Regional Wastewater System,
Brunswick County agree
s to charge and the Town of Oak Island agrees to pay the same
the Sewer Service Agreement between
operation and maintenance charges as defined iT wn of Oak Island understands that the rate is
Town of Oak Island and Brunswick County. The
based upon an estimate of the cost to operate the plant and at at �e reflect t theflscal actual ostth
true cost to operate the plant will be known and theadjusted
to
operate the West Brunswick Regional Wastewater System.
receive o rea t Oak
is Pro runderstands share f
that it must pay its pro rata share of any shortfall
any surplus.
al Wastewater
Prior to the discharge of any wastewater tome Dement Sewer Use OBrunswick orndinance in conformance ...
the Town of Oak Island agrees to adopt and p
with the requirements of the Sewer Service Agreement.
In the event of the termination of the Sewer Service Agreement and void and Brunswick oCunty shall
f Oak island
and Brunswick County, this agreement shall become
have the right to discontinue sewer treatment service for the Town of Oak Island or at the
County's discretion, allow the discharge of wastewater�fr maintenance rate that ithe Town ncludes desak land to the capital cost
ue
for a defined period and charge an operation
of the allocated capacity being used by the Town of Oak Island.
The facilities needed to transport wastewater from the Town of Oak Island to the West
Brunswick Regional Wastewater Plant must be approved by various regulatory agencies. This
agreement may be modified or terminated if all regulatory approvals of the facilities required
transport wastewater from the Town of Oak Island to the wastewater treatment plant cannot be
obtained.
This agreement shall also become null and void upon completion of the 3 million gallon per day
expansion of the West Brunswick Regional Wastewater Treatment System required to
permanently serve the Town of Oak Island.
AGREED TO THIS DAY 7! _ OF NOV-EMBER _ 2005.
ATTEST:
THE COUNTY OF BRUNSWICK
By:
Zhan
2of3

ATTEST:
,
Town Clerk
A`>>��tl SIN l�y�ry
(SEAL) y�aQ •••••�•ti {�:
%
�= CHARTERBd?
1999
A T�
a
610 $014*�
TOWN OF OAK ISLAND
3 of 3

WEST BRUNSWICK REGIONAL WASTEWATER PROJECT
SEWER SERVICE AGREEMENT
THIS SEWER SERVICE AGREEMENT, dated as of the 7 r, by and between
the COUNTY OF BRUNSWICK, a political subdivision of the State of North Carolina (the "County"), and
the TOWN OF OAK ISLAND, a public body and a body politic and corporate of the State of North Carolina
(the "Participant") [All capitalized terms used herein shall have the meaning set forth in the standard
provisions herein unless otherwise herein indicated];
WITNESSETH:
WHEREAS, the soils in central Brunswick County are not generally suitable for disposal of
sewerage through septic tanks; and
WHEREAS an urgent need exists for high quality wastewater treatment in sufficient quantities to
serve the growing population and development in Brunswick County and to protect the waters and other
environmental elements within the region from adverse impacts caused by septic tank use; and
WHEREAS, the County and the Participant (collectively with the Participant, the "Participants"),
are constructing sewer collection systems to serve their respective citizenslcustomers; and
WHEREAS, the County and the Participant have determined that, by participating together in a
regional wastewater treatment and transmission project for their mutual benefit, rather than each
separately constructing its own new or improved sewer treatment plant(s) notwithstanding Section 1.4 of
the Standard Provisions, economies of scale and a long term secure source of high quality wastewater
treatment can be achieved with savings and other tangible and intangible benefits for their users; and
WHEREAS, based on said determination, (1) the County has determined to finance, construct and
operate the West Brunswick Regional Wastewater System (the "Project"), as described in Exhibit "B",
which will treat wastewater from the Participants, and (ii) the Participants have determined to participate
with the County in developing and financing the Project; and
WHEREAS, in order to assist in the construction, financing and operation of the West Brunswick
Regional Wastewater System, the Participants have agreed to contract with the County for sewer service
in order to provide, among other things, for payment by the Participants of (1) a portion of the capital Costs
of the Project through an Capital Charge, on a basis that equitably allocates among them the Project
Costs, and (ii) a Monthly Service Charge to cover operations and maintenance, reserves and such other
rate components as are appropriate for similar systems; and
WHEREAS, while the County will serve as owner and operator of the Sewer System, the County
will have a similar financial obligation as the Participants, with respect to capital charges and operation
and maintenance expenses.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:
-1-

1. SEWER SERVICE STANDARD PROVISIONS The County agrees not to provide sewer
service to a Participant, either pursuant to Sewer Service Agreements or otherwise, unless the Participant
has entered into a written agreement with the County agreeing to be bound by these Standard Provisions:
Section 1.1. Definitions. The following words as used in this Sewer Service Agreement shall
have the following meanings.
"Act" shall mean The State and Local Government Revenue Bond Act, constituting Article 5 of
Chapter 159 of the General Statutes of North Carolina, as amended.
"Advances for Construction" shall mean those funds advanced by the County for planning, project
management, acquisition, engineering, legal or construction costs of the Project.
"Ancillary Service Facilities" shall mean those facilities of the Sewer System that have been
identified by the County in its sole discretion as directly or indirectly benefiting only the Participant using
them and which have no system -wide benefit, and shall include, but are not limited to, (1) the tap to the
County's pipeline, and (1i) the meter installation.
"Annual Budget" shall mean the budget or amended budget of the County for each Fiscal Year
with regard to the Sewer System.
"Bonds" shall mean the bonds of the County or any other evidence of indebtedness issued by the
County or any financing obligation executed by the County to raise funds for the Cost of the Project or to
pay for Improvements.
"Bond Order" shall mean the bond order or other resolution or order adopted or financing
document executed by the County authorizing issuance of the Bonds, together with all orders amendatory
thereof and supplemental thereto.
"Capital Charge" shall mean a periodic payment charged by the County to a Participant for making
sewer service available in those cases where the County has advanced funds to pay for Improvements
needed to make such sewer service available.
"Capital Expenses" shall mean an obligation incurred to acquire new physical assets and/or
incurred to acquire the replacement and/or upgrade of existing physical assets and to be paid from
sources other than Current Expenses, i.e. Renewal and Replacement Fund, debt proceeds and
designated retained earnings.
"Connection Charge" shall mean a separate charge covering the Cost of Ancillary Service
Facilities that is not included as a component of the County's Monthly Service Charges as defined in the
Rules and Regulations.
"Cost" shall mean cost as defined in North Carolina General Statutes 159-81(3) and 162A-2(3).
"Count/' shall mean the County of Brunswick, a Political Subdivision of the State of North
Carolina.
"County Sewer Use Ordinance" shall mean the Sewer Use Ordinance of the County as defined in
Section 1.1 0 of these Standard Provisions.
-2-

"Current Expenses" shall mean the County's ongoing and recurring expenses during each Fiscal
Year for operation and maintenance of the Sewer System as determined in accordance with generally
accepted accounting principles including, but not limited to, all administrative, general and commercial
expenses, insurance and surety bond premiums, payments for the billing and collection of rents, rates,
fees or other charges imposed or charged by the County for the use of the Sewer System, legal expenses
paid -to outside sources, any taxes which may be lawfully imposed on the Sewer System or the income or
operations thereof or the property forming a part thereof, usual expenses of maintenance, repair and
operation, including cost of power and administrative expenses and salaries, refunds, any other current
expenses required to be paid by the County under the provisions of the Bond Order or by law, all to the
extent properly and directly attributable to the Sewer System, and the expenses, liabilities and
compensation of the Trustee. "Current Expenses" does not include any reserves for operation,
maintenance or repair, any allowance for depreciation, amortization, interest on Bonds or other long term
indebtedness or similar charges, any expenditure for which the County has made, Connection Charges or
any reimbursement of Advances for Construction.
"Debt Service" shall mean the sum of money required to pay installments of principal and interest
on indebtedness incurred by the County for the Sewer System in a Fiscal Year.
"Fiscal Year" shall mean the period commencing on July 1 of any year and ending on June 34 of
the following year, or such other fiscal year, which the County may adopt.
"Improvements" shall mean any additions, enlargements, improvements, extensions, alterations,
fixtures, equipment, land, appurtenances or other facilities to or for the Project.
"Monthly Service Charge(s)" shall mean the rates of charge for sewer service established
pursuant to Section 1.11. of these Standard Provisions and the Section 4.1 of the Rules and Regulations.
"Oversight Committee" shall mean the committee established under Section 6.1 of the Rules and
Regulations.
"Participant" shall mean a governmental unit, which enters into a Sewer Service Agreement with
the County whether or not the Participant uses the sewer.
"Participant's Service Facilities" shall mean the sewer collection and transmission facilities owned
by a Participant and commencing at the connection on the Participant's side of the County's meter and
servicing the sewer collection system, customers or other facilities of such Participant.
"Participant Sewer Use Ordinance" shall mean an ordinance conforming to State and Federal
regulations and requirements adopted by each Participant engaging in the sewer collection and/or treatment
business regulating the operation and maintenance of its sewer collection and/or sewer treatment Facilities.
"Point of Delivery" shall mean the point or points mutually agreeable to the County and a
Participant where the County shall accept delivery of sewerage from a Participant.
"Political Subdivision" shall mean a municipal corporation, county or other political subdivision of
the State.
"Project" shall mean the Project as defined in Exhibit "B"
"Rules and Regulations" shall mean the rules and regulations adopted from time to time by the
-3-

County for administering the Sewer System.
"Sewer Service Agreement" shall mean the agreement, as amended, between the County and a
Participant for the purchase and sale of sewer treatment capacity, including the Standard Provisions.
"Sewer System" shall mean the Project plus any improvements.
"Standard Provisions" shall mean the Standard Provisions to Sewer Service Agreements, as
amended from time to time.
"State" shall mean the State of North Carolina.
"System Development Charge" shall mean the System Development Charge as defined in
Section 4.2 of the Rules and Regulations, as amended from time to time.
"Trustee" shall mean the Trustee at the time serving as such under the Bond Order.
Section 1.2. Warranties. The County and each Participant represents and warrants that each
has full power and authority to enter into and perform any and all provisions of the Sewer Service
Agreement between the County and the Participant.
Section 1.3. Sewer Service. Subject to the other terms of this Sewer Service Agreement, the
County will furnish sewer service to each Participant in accordance with the Participant's Sewer Service
Agreement. Each Participant will discharge or deliver wastewater to the Sewer System for treatment at a
mutually agreeable Point of Delivery through a meter(s) in accordance with the Rules and Regulations.
The County and the Participant engaging in the sewer business shall cause to be in force, at all times, a
State approved sewer use ordinance and shall abide by and enforce the provisions and requirements of
the same.
Section 1.4. County to Provide Ali Sewer Treatment. So long as the County is capable of providing
to a Participant its sewerage treatment needs, a Participant shall not acquire or produce sewer treatment
capacity from any source other than the County without the express written consent of the County, which
consent shall not unreasonably be withheld; provided, however, a Participant may at all times without the
County's consent utilize, maintain, repair, replace or expand the capacity of any sewer system in existence
and owned or operated by the Participant at the time the Participant first uses sewer treatment capacity
provided by the Project expected to be Dec. 31, 2008 and any sewer system that a Participant which is a
municipality acquires by annexation, so long as the Participant still utilizes the Project capacity described in
the Participant's Sewer Service Agreement. The County and the Participant agree to allow the Participant to
enter into a separate sewer service agreement with the Town of Caswell Beach, other sewer users on Oak
Island, and within the Town of Oak Island's Extra Territorial Zoning Jurisdictional (ETJ) area.
Section 1.5. Meters. Procedures for the installation, operation, maintenance, calibration, and
reading of meters and adjustment of meter readings shall be set forth in the Rules and Regulations.
Section 1.6. Operation of Sewer System. The County shall operate and maintain, or cause to be
operated and maintained, the Sewer 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.
Current Expenses in any Fiscal Year shall not exceed an amount that is reasonable and necessary and
that is designated as Current Expenses in the County's Annual Budget for such Fiscal Year.
-4-

Section 1.7. Inspection of the System. if requested by the Technical Review Committee
hereinafter established in the Policy Guidelines and Rules and Regulations for Rendering Sewer Service,
the County shall cause a consulting engineering firm experienced in wastewater treatment plant operation
to inspect the Sewer System at least once every 12 months and to submit a report identifying any
operational, maintenance, or repair problems of the Sewer System and setting forth for the next ensuing
12-month period (i) recommendations as to any revisions that should be made in the methods of operation
or maintenance of the Sewer System and any repairs that must be made to maintain the Sewer System in
such period, together with an estimate of the cost of such repairs and methods, (ii) an estimate as to the
amount of adequate reserves for extraordinary repairs, renewals and replacements to the system in such
period, (iii) an estimate as to the staffing requirements of the County for the Sewer System for such
period, and (iv) an estimate as to any additional insurance that may be needed to insure the County
against loss due to casualty loss or damage to the Sewer System. The County shall be obligated to
undertake any action recommended in the engineer's report, which the County would be required to take
to comply with Section 1.6. of these Standard Provisions. A Participant may at its own cost and expense
cause a consulting engineer to inspect the Sewer System at least once every 12 months upon 60 days
notice to the County. A copy of the Participant's inspection report shall be provided to the County.
Section 1.8. Insurance. The County shall carry at all times insurance covering all properties
belonging to the Sewer System as are customarily insured, against loss or damage from such causes as
are customarily insured against by enterprises of a similar nature and of a type and form as may be
required by the Bond Order. The County also shall carry workers' compensation insurance, use and
occupancy insurance, employers liability insurance, boiler and machinery insurance, public officials liability
insurance, automobile liability insurance, and commercial general liability insurance insuring against bodily
injury and property damage arising out of the operations of the County. Such insurance shall be
maintained with a financially responsible insurance company or companies, authorized and qualified under
the laws of the State to assume the risk thereof. The proceeds of insurance shall be applied as provided
in the Bond Order. If the County determines, and so certifies to the Trustee, that the amount of insurance
coverage required by this Section or by the Bond Order is not available on reasonable terms and
conditions, the insurance coverage required by this Section and the Bond Order may be modified in
accordance with such determination, and the coverage as modified shall constitute the minimum
requirements of this Section and the Bond Order.
Section 1.9. Observance of Regulations. Each Participant covenants and agrees to observe the
Rules and Regulations which have been adopted by the County (and as they may be amended)
respecting the use of and services furnished by the Sewer System or legally required by any other
authorized regulatory body.
Section 1.10. Observance of Sewer Use Ordinance. Each Participant covenants and agrees to
observe the Sewer Use Ordinance of the County adopted November 21, 1994, as amended (the "County
Sewer Use Ordinance"), respecting discharge of wastewater to the Sewer System, Any Participant that
operates a sewer collection and transmission system agrees (i) to cause its own customers to comply with
the Participant's Sewer Use Ordinance or the County Sewer Use Ordinance, whichever is more stringent,
and (ii) to adopt and at all times maintain in effect and enforce a State approved sewer use ordinance for
its own system which shall require compliance with the County Sewer Use Ordinance notwithstanding the
provisions of the Participant's Sewer Use Ordinance. A Participant's Sewer Use Ordinance shall also
require that any customer of the Participant which intends to discharge non -domestic strength wastewater
to the Participant's wastewater collection system shall first make application to the Participant. A
Participant shall be responsible to the County for any damage to the Sewer System caused by its own
customers and/or civil penalties assessed for violation of the County Sewer Use Ordinance or the
-5-

County's discharge/non-discharge permit for the Project
Section 1.11. Monthly Service Charge. The County shall fix and determine on an annual basis a Monthly
Service Charge for sewer treatment furnished to all Participants. Monthly Service Charges shall be
established by the County at such levels as may be necessary to provide funds, together with other
available funds, at least sufficient in the aggregate at all times to pay (i) Current Expenses, and (ii) Capital
Expenses in each fiscal year for which Debt Service is not incurred and (ill) the Debt Service on financing
obligations of the County for the Sewer System as the same become due, including all debt service
reserves and other funds, coverage, accounts and reserves as may be required by any order or resolution
authorizing the issuance of bonds, including the Bond Order. A Participant will receive a credit against its
payment obligation under this Section for any amount paid under Section 7. The County shall be entitled to
revise its Monthly Service Charges through an annual budget for a fiscal year to be presented for review
by the Oversight Committee by March 1st of each year to comply with this section. The Brunswick County
Board of Commissioners shall take action establishing the Monthly Service Charge, effective July 1, on
the first Monday in April. Monthly billings to a Participant shall be determined by applying the rates
determined pursuant to this Section to the total amount of sewerage treated for each Participant as
obtained from the County's meter readings. The County may present charges based on budget
estimates, subject to adjustment based on actual meter readings. The monthly billings and payments of
the participant are based on a rate that it estimated to provide funding adequate for actual and necessary
operating expenditures and debt service of the West Brunswick Regional Wastewater Project. Since the
rate for billing is based on estimated revenues and expenditures it will be necessary for Participants in the
plant to make a "true up" payment annually in the event actual expenditures are in excess of actual
revenues or in the event actual annual revenues are in excess of expenditures, surpluses will either be
credited back to the Participants or based upon the recommendation of the Oversight Committee, be
placed into the Capital Replacement Reserve Fund.
Section 1.12. Pa��rr ent. Each Participant covenants and agrees to pay promptly when due the
County's Monthly Service Charges as determined in accordance with this Article and billed to the Participant
from time to time and the Capital Charge by wire transfer to the account provided in written directions from
the County. Payment for sewerage treated for a Participant during any month is due in full as provided in the
Rules and Regulations at the office of the County. Payment of Monthly Service Charge shall be due
notwithstanding that a Participant disputes the accuracy or legality thereof or notwithstanding that the County
curtails or interrupts service to the Participant pursuant to these Standard Provisions. There shall be no free
sewer service rendered by the County. Nothing contained herein shall require a Participant to pay for sewer
treatment the County is incapable of delivering or providing.
Section 1,13. Disputes. Even if a Participant disagrees with Monthly Service Charges received from
the County for any given service period, the Participant shall be obligated to pay, in full, said Monthly Service
Charges, but can do so "under protest". The "protest" shall be resolved according to the provisions of this
agreement,
If a Participant disputes all or part of any Monthly Service Charge or other payment due to the
County, the Participant shall within 15 days of learning of the nature of the dispute notify the County in writing
that the charges are disputed, the grounds for the dispute, and the amount in dispute. Failure to have made
the full payment as provided in Section 1.12. hereof will result in the County, at its option, denying the
Participant's claim. Upon receipt of notification of dispute, representatives of the County and the Participant
shall meet within fifteen days to resolve such dispute. The County and the Participant shall promptly and
continuously attempt to resolve the dispute within five business days of meeting. In the event that it is
determined that the Participant shall have overpaid, it shall receive a credit for the overpayment. If the
dispute cannot be thus resolved, each party shall thereafter be entitled to exercise any remedies available at
law or in equity including non binding mediation and arbitration.
-d-

Section 1.14. Limitation. Nothing herein shall prevent the County and a Participant from
limiting the obligation of any Political Subdivision to pay Monthly Service Charges and the County's other
rates and charges to or from non -tax revenues of the Political Subdivision so that a Sewer Service
Agreement with such Political Subdivision will not constitute a debt secured by a pledge of the Political
Subdivision's faith and credit which has not been approved in accordance with the provisions of Article V,
Section 4 of the Constitution of North Carolina.
Section 1.15. Bills. As a convenience to the Participants, the County will mail each
Participant a bill not later than the date for mailing provided for In the Rules and Regulations covering
sewer treatment provided during the previous month. Ali bills shall be sent to the address of the premises
being served by the County, unless a Participant notifies the County in writing of some other address to
which bills are to be mailed. Failure to receive bills will not be considered justification for non-payment of
amounts due, nor permit an extension of the date when the account will be considered delinquent. The
County may, at any time, correct any bills for service that may be in error.
Section 1.16. Interest. Interest on delinquent Monthly Service Charges shall accrue during
the period of non-payment at the rate of 10% per annum, subject to periodic adjustment by the County
subsequent to review by the Oversight Committee.
Section 1.17. Credits, The County will by lump sum payment within 90 days of the date a
determination is made that a refund is due, refund any Monthly Service Charges or other charges or parts
thereof that the County or a court of competent jurisdiction by final judgment determines were (a)
inaccurate, illegal or otherwise not entitled to be collected or (b) paid in the immediately preceding Fiscal
Year in excess of the amounts required for such Fiscal Year under clause (III) of the second sentence of
Section 1.11. Rather than making a refund by lump sum payment, the County may at its option make
refunds In successive monthly installments over such 90-day period or may make the refund in the form of
a credit to future amounts due to the County by the Participant over such 90-day period. Interest shall
accrue on the refund at the same per annum rate specified in Section 1.16.
Section 1.18. System Development Charges: Connection Charges. The County shall in
accordance with the Rules and Regulations, Sections 4.2 and 4.3, collect from Participants who apply for
new or expanded service a System Development Charge and such Connection Charges as are
appropriate to the service being provided by the County.
Section 1.19. Industrial Wastewater. The County shall require all Industrial and other
Participants who generate wastewater other than domestic strength wastewater to pre -treat its wastewater
so that when it is discharged to the Sewer System it is of domestic strength as defined in the latest version
of the Sewer Use Ordinance, If for any reason a Participant discharges wastewater to the Sewer System,
which exceeds domestic strength, the County agrees to surcharge such Participant so that the Monthly
Service Charges charged other Participants are not impacted by the added cost incurred by the County in
treating the non -domestic strength wastewater.
The Participant shall not allow a customer, or itself, to dilute a high -strength wastewater as a
method of treatment of said wastewater in order to comply with the County's Sewer Use Ordinance,
Section 1.20. Limitations on Service: Curtailment. Any duty or obligation of the County to
meet a Participant's sewer treatment needs, over and above any stated capacity the County contracts to
provide in the Sewer Service Agreement with the Participant, is subject to limitations upon the County's
ability to do so caused by (1) the amount of sewerage discharge permitted or available to the County, (H)
-7.

obligations of the County pursuant to Sewer Service Agreements to provide sewer service to other
Participants, (ii) the capacity of the Sewer System and (iv) completion of any Improvements the County
elects to make to enable it to provide sewer service to a Participant.
Section 1.21. Temporary Interruptions'. The County may at any time shut down the Sewer
System in case of an accident, or for the purpose of making connections, alterations, repairs, changes or
for any other lawful reasons. The County will endeavor to give as much notice as possible in advance of
any interruption of service. It is the obligation of Participants and not the County to protect the
Participant's facilities connected with the Sewer System so that damage will not occur if service is
suspended without notice.
Section 1.22. Shut Off for Default,• Acceleration and Notices. If payments of Monthly Service
Charges or Capital Charges due from a Participant remain delinquent for a period of more than thirty (30)
days, the County may take one or any combination of the following remedial steps:
(1) service may, where permitted by applicable laws and regulations of the State, be
suspended by the County;
(ii) the County, by written notice to the Participant, may declare an amount equal to the then
outstanding Monthly Service Charges, Capital Charges and accrued interest thereon
to be immediately due and payable as liquidated damages under this Sewer Service
Agreement and not as a penalty, whereon the same shall become immediately due
and payable; or
(iii) the County may take whatever action at law or in equity may appear necessary or
desirable to collect the amounts then due and thereafter to become due, or to enforce
performance and observation of any obligation, agreement or covenant of the
Participant under this Sewer Service Agreement.
The County will give each Participant twenty-four (24) hours notice prior to suspending service on account
of non-payment of rates and charges, The County may also suspend service after thirty (30) days notice
when a Participant violates any terms of a Sewer Service Agreement with the County or any rule or
regulation and fails to remedy or cure such violation within the thirty (30) day notice period,
Section 1.23. Sewer Service to New Participants. After notification of the Oversight
Committee and all other Participants, the County shall only provide sewer service to new Participants
pursuant to a Sewer Service Agreement.
Section 1.24. Amendments and Termination. it is recognized by the County and each
Participant that the Participant's Sewer Service Agreement will constitute an essential part of the County's
financing plan. This agreement may not be terminated, amended or modified before the end of its original
term or any agreed upon extended term without consent of the parties. The amendment of a Participant's
Sewer Service Agreement shall not amend the provisions of any other Sewer Service Agreement. In the
event of a unilateral termination of this agreement by a Participant or by the County, the party who elects
termination shall be responsible to pay the other party for the actual cost incurred up to the time of notice
of termination by the County on behalf of the Participant or actual costs incurred by the Participant to
participate in the County's sewer service plan. Reimbursable costs would be engineering fees, legal fees,
fees associated with the sale of revenue bonds, or other forms of financing, and reasonable administrative
costs directly related to the party's' participation in this agreement. A mutually agreeable termination of this
agreement will be on such terms as the parties may agree at the time in question. Each party hereto
reserves to itself all legal rights and remedies available at law or in equity in the event of any other breach
of this agreement by the other.
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Section 1.25. Future Financing. The County may, in its sole discretion, incur debt to pay for
Project Cost overruns or Improvements.
Section 1.26. Construction and other Cooperation, The County and each Participant currently
constructing wastewater collection systems agree to cooperate with each other during design and
construction of the Project and their sewer collection systems, such assistance to include, but not be limited
to, exchange and review of design plans and specifications, providing access to each others work sites and
easements for purposes of connecting to the Project and sharing information about start and completion
dates, change orders and other matters that may adversely affect Costs. Each such Participant agrees to
construct its respective wastewater collection system and place it in operation with all reasonable dispatch
and thereafter to operate and maintain it in a prudent and economical manner. The same shall be true for all
subsequent additions and Improvements as required to provide sewer services to all Participants, both
current and future.
Section 1.27. Books and Records. The County shall keep proper books and records in
accordance with generally accepted accounting principles which shall be available for inspection at all
reasonable times by each Participant. The County shall cause an annual audit of its books and records to be
made by an independent certified public accountant at the end of each Fiscal Year. An allocated portion of
the audit expense shall be a part of the O&M cost of the project.
Section 1.28. Successors and Assigns. Each Sewer Service Agreement, including these
Standard Provisions, shall be binding upon, inure to the benefit of and be enforceable by the parties thereto
and their respective successors and assigns; provided, however, that neither a Participant nor the County
may assign their rights, liabilities and obligations hereunder without the consent of the other party except that
the County may assign all Sewer Service Agreements to the Trustee without the consent of any Participant.
Section 1,29. Severabili . If any provision of any Sewer Service Agreement, shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding shall not affect any other
provision thereof.
Section 1.30. Waiver. Any party's failure to insist upon the strict performance of any provision of
a Sewer Service 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 the Sewer Service
Agreement.
Section 1.31. Counterparts. Sewer Service Agreements may be executed in several
counterparts, any of which shall be regarded for all purposes as one original.
Section 1.32. Controlling Law. Sewer Service Agreements shall be construed and enforced in
accordance with the laws of the State of North Carolina.
2. TERM. This Sewer Service Agreement shall be in full force and effect for a period ending at
the later of 30 years from the date of its execution or 5 years after the last maturity of the Bonds. It shall
continue in effect beyond the initial term for successive 10-year terms unless terminated by the County or
the Participant by either giving to the other written notice of termination at least one year prior to the
expiration of the initial term or any extended term hereof.
3. PROJECT CONSTRUCTION. The County will construct the Project substantially in
accordance with the plans and specifications therefore, as the same may be modified to meet
requirements of appropriate regulatory bodies. The County shall require each person, firm or corporation
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with whom it may contract for the construction of the Project to furnish a payment and performance bond
in the full amount of any contract. The proceeds of any such performance bond shall be applied toward
the completion of the Project.
4. PAYMENT FOR PROJECT. The obligation of the County to construct the Project is limited to
the funds available to it from time to time for such purposes. The County shall be under no obligation to
provide funds for such purpose except through revenue bonds. If the revenue bonds, together with any
other funds the County elects to use, are not sufficient to pay for the Costs of the Project, as bid, the
County shall be entitled to recalculate the Capital Charge provided for herein. If the Participant does not
consent to the new Capital Charge within 60 days of such recalculation, then the County may terminate
this agreement. Debt payments and operation and maintenance expenses shall be payable beginning the
first month in which the Phase Il Sewer System is capable of accepting and treating sewerage from the
Participant, as determined by the County's consulting engineers.
5. FINANCING. The County shall, as soon as may be practicable and with all reasonable
dispatch, obtain funding of the revenue bonds, which are in an amount sufficient to pay the Cost of
constructing and placing the Project in operation; provided, however, that nothing contained in this Sewer
Service Agreement shall require the County to issue Bonds except upon terms deemed reasonable by it.
6. SEWER SERVICE. Subject to the terms of the Section 1 of this Sewer Service Agreement,
the County agrees to construct, operate and maintain the Project and, upon completion thereof, to provide
sewer service to the Participant in the amount of three million gallons per day (gpd). The Participant
agrees to pay the County's Monthly Service Charge for sewer service and to assume the Participant's
obligations set forth herein. All obligations of the County for payments under this contract shall be limited
to revenues derived by the County from the operation of the Sewer System. The Participant covenants
and agrees to maintain rates and charges for all services fumished by its sewer collection system which
shall at all times be sufficient to satisfy and discharge its obligations under this contract and under any
other agreement relating to the financing of the Project, in addition to the Participant's other operations
and maintenance costs or any debt service of the Participant secured by a pledge of revenues.
In addition the County agrees to meet the Participant's sewer treatment needs, subject to
limitations upon the County's ability to do so caused by the lack of capacity of the treatment facilities, lack
of discharge capability, and completion of any improvements by the County to enable it to provide the
service provided for herein. In order to provide for the public health and welfare, the County will use its
best efforts to develop additional treatment capacity for the Project, as needed, to meet the wastewater
treatment needs of all Participants and will use sound financial planning to provide funds, through impact
fees and related charges, and/or loans, necessary to provide the requisite facilities to meet such needs.
T. PARTICIPANT'S SHARE OF CAPITAL. PROJECT COSTS. In order to pay the Participant's
fair share of the Capital Costs of the Project, the Participant promises to pay to the County in each month
a Capital Charge equal to the sum of the amount due in such month set out In the schedule attached
hereto as Exhibit A. The first Capital Charge shall be payable in the first month in which the Sewer
System is capable of accepting and treating sewerage from the Participant, as determined by the County's
consulting engineers, The Participant shall not be required to pay a Connection Charge or System
Development Charge at the time the Participant initially connects to the Sewer System; provided, however,
nothing herein shall prevent the County from charging the Participant a Connection Charge or System
Development Charge if the Participant later needs modified or additional connections.
8. EFFECTIVE DATE. This Sewer Service Agreement shall become effective on the date of
its execution.
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IN WITNESS WHEREOF, the parties hereto, acting by and through their duly authorized
representatives pursuant to the resolutions of their respective governing bodies, have caused this
Agreement to be executed as of the day and year first above written.
ATTEST:
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-11-
THE COUNTY OF BRUNSWICK
By:
hai an
TOWN OF OAK ISLAND
Mayor

EXHIBIT A
CAPITAL CHARGE REPAYMENT SCHEDULE
In accordance with Section 7 of this Sewer Service Agreement, the Town of Oak Island is
obligated to begin paying a Capital Charge to Brunswick County in the first month of
completion of the Capital Improvements described in Exhibit B.
At this time, the sources and amounts of debt financing for the project have not been
finalized. The Town of Oak Island and Brunswick County agree to revise this Exhibit
based upon the final sources of money and amount of funds from those sources.
The Town of Oak Island's share of the debt associated with the West Brunswick
Regional Wastewater System shall be its proportional share of all of the cost of West
Brunswick Regional Wastewater System including the facilities constructed to serve
portions of Brunswick County, the Town of Holden Beach and the Town of Oak Island.
The cost of the facilities shall include all engineering, land acquisition and construction
associated with the facilities.
As the Town of Oak Island will assume a portion of the debt associated with the
construction of the existing 3 mgd West Brunswick Regional Wastewater System (Phase
I), the Town agrees to pay its proportionate share of the existing debt from the time of the
initial debt financing. As the principal and interest payments on the debt associated with
the construction of the 3 mgd plant(Phase I) will start prior to completion of the 3 mgd
expansion (Phase II), the Town of Oak Island agrees to reimburse the County and Town
of Holden Beach, its proportionate share of any payment made on the debt associated
with the 3 mgd West Brunswick Regional Wastewater System (Phase I), The
reimbursement of the Town of Oak Island's share of these debt payments shall
continence three years after completion of the 3 mgd plant expansion (Phase II) and be
completed with three subsequent annual payments.

EXHIBIT B
PROJECT DESCRIPTION
WEST BRUNSWICK REGIONAL WASTEWATER SYSTEM
Brunswick County will construct a 3 mgd expansion of the West Brunswick Regional
Wastewater System such that the plant will have a total treatment capacity of 6 mgd.
Construction will also include a transmission main from the ETJ limits of the Oak Island
to the West Brunswick Regional Wastewater Plant, effluent reuse lines to designated
effluent reuse locations and effluent disposal systems at the effluent reuse sites.
The West Brunswick Regional Wastewater Plant has been designed as a tertiary
treatment facility and the plant and subsequent expansion will meet or exceed the North
Carolina Department of Environment and Natural Resources (NC DENR) regulations for
effluent reuse. The plant and subsequent expansion will be designed to meet the
following criteria:
+ A monthly average for Total Suspended Solids (TSS) of less than or equal to 5
mgll and a daily maximum TSS of less than or equal to 10 mgll.
• A monthly average for Biological Oxygen Demand (BOD) of less than or equal to
5 mgll and a daily maximum BOD of less than or equal to 10 mgll.
+ A monthly average for Ammonia of less than or equal to 4 mgll and a daily
maximum Ammonia of less than or equal to 6 mgll.
• A monthly geometric mean of Fecal Coliform of less than or equal to 141100 ml
and a daily maximum of Fecal Coliform of less than or equal to 251100 ml.
■ Continuous on-line monitoring of turbidity is required and the reuse effluent
cannot exceed 10 NTU.
In addition to meeting these requirements, the facility will include a storage pond for
wastewater effluent that does not meet the reuse criteria and a storage pond for times
when inclement weather prevents spraying of effluent on the disposal sites. Effluent
disposal sites have been identified for the facility where treated wastewater effluent can
be sprayed. Wastewater sludge generated at the facility will be treated to meet EPA 503
regulations for a Class A Sludge. Ultimate disposal of the sludge will be by land
application.
The West Brunswick Regional Wastewater System will serve the following entities.
• Brunswick County
+ Town of Holden Beach
r Town of Oak Island

EXHIBIT C
PROPOSAL CONCEPT AGREEMENT
Brunswick County submitted a proposal to the Town of Oak Island in June, 2005. The
proposal was based upon a number of concepts that affect the overall cost of the project.
Brunswick County and The Town of Oak Island mutually agree to the following concepts
outlined in the proposal.
1. Existing Oak Island Tracts To Be Used For Wastewater Treatment and
Disposal,
Oak Island owns two tracts of land located near NC 211 that will be used for
effluent reuse as a part of the expanded West Brunswick Regional Wastewater
System. Under the terms of this agreement, the 770 acre tract would be deeded to
Brunswick County for use as an effluent disposal site.
The existing `debt on the 770 acre tract will be included as a part of the costs
associated with the West Brunswick Regional Wastewater System and will be
assumed by the Participants in the West Brunswick Regional Wastewater System
based upon capacity allocation in the system.
The Town of Oak Island agrees to enter into a 30 year lease with options for
renewal of the lease for the 105 acre tract with Brunswick County. Under the
terms of the lease, the Town of Oak Island may notify Brunswick County that it
desires to terminate the lease; however, the Town of Oak Island cannot obtain sell
or otherwise use the property until such time that an alternate effluent disposal
site with the same effluent reuse capacity or better is obtained and an effluent
reuse system constructed on that site, The Town of Oak Island would further
agree to pay 100% of the cost of purchasing the alternate effluent disposal site and
the cost of constructing a new effluent disposal system on that site.
2. Reimbursement of Prior Engineering Work on the Force Main Routing and
Town Owned Effluent Reuse Sites
The Participants in the West Brunswick Regional Wastewater System agree to
reimburse the Town of Oak Island up to $400,000 for engineering services
performed on components of the Phase 11 Improvements of the West Brunswick
Regional Wastewater System including the 105 acre and 770 acre effluent reuse
sites owned by the Town and on the proposed force main routing that is required
by the regulatory agencies to receive SRF Funding and/or construction permits.
The reimbursement will be included as a part of the overall project cost and the
reimbursement will not occur until the sale of the revenue bonds associated with
this project.

3. Interim Capacity in the Existing Regional Force Main in NC 211
To expedite the treatment of a portion of the wastewater from the Town of Oak
Island, Brunswick County will allow the Town of Oak Island to connect to a new
force main to be constructed from the Town of Oak Island ETJ boundary which
will connect to the existing sewer force main in NC 211 and transport up to an
average of 1,000,000 gallons of wastewater per day to the West Brunswick
Regional Wastewater Treatment Plant. The flow rate discharged to the force main
in NC 211 shall not exceed 1,260 gallons per minute without approval of
Brunswick County.
4. Operation of the Oak Island East Water Reclamation Facility
Under the terms of this agreement, the Town of Oak Island will continue
operation of the. Oak Island East Water Reclamation Facility and satellite reuse
facility.

WEST BRUNSWICK REGIONAL WASTEWATER PROJECT
POLICY GUIDELINES
AND
RULES AND REGULATIONS
FOR
RENDERING SEWER SERVICE
THE COUNTY OF BRUNSWICK
WHEREAS, the County of Brunswick is a political subdivision of the State of North Carolina
operating subject to the Local Government Budget and Fiscal Control Act; and
WHEREAS, the County owns and operates the West Brunswick Regional Wastewater System
(the "Project-) for the purpose of providing a reliable and self-sufficient source of sewer treatment to
potential Participants commensurate with the orderly development and continued prosperity of the central
part of the County; and
WHEREAS, it is the County's goal to establish and charge reasonable and economical rates and
charges for the service provided by the Project which are sufficient for the County to operate and maintain
the Project as a financially self sustaining enterprise and to assure continued, uninterrupted sewer service
to all Participants; and
WHEREAS, the following guidelines for rate making and financing are intended to allocate the
Cost of service to all Participants in an equitable manner;
(a) Monthly Service Charges. The County shall develop for the Sewer System Monthly
Service Charges, which reflect the County's Current Expenses and operating expenses
during each Fiscal Year, the County's growth rate, its capital construction programs, and
its financing requirements. The Participant recognizes, however, that charges in addition
to Monthly Service Charges will be necessary to establish an overall system of rates and
charges, which is equitable to all Participants.
(b) CaoRal_Charge. The County may, with legal capacity to obligate itself to do so, require
Participants to pay for a minimum monthly capital charge without regard to the actual
amount of service used by the Participants.
(c) System Development Charges. Non -charter Participants shall pay their fair share of
the Cost of existing facilities of the Sewer System, which in the opinion of the County
directly or indirectly benefit all of the Participants of the Sewer System. Although it is the
general policy of the County that new Participants are entitled to sewer service at the
same Monthly Service Charges charged its existing Participants, the County recognizes
that existing Participants have and will continue to provide funds to pay part of the Cost of
facilities having a system -wide benefit through the payment of Monthly Service Charges
or other amounts to the County. The County thus shall establish and collect System
Development Charges so that later Participants pay a portion of the Cost of such facilities
previously paid by the existing Participants.
Be

(d) Connection_ _Charges. The County shall establish and collect from each new
Participant Connection Charges sufficient to pay the Cost of all facilities which the County
identifies in its opinion as being exclusively for the direct or indirect benefit of the
Participant and for which the Participant does not directly pay.
NOW, THEREFORE, the following Rules and Regulations, as they may be hereafter amended,
shall, together with the Sewer Service Agreement and the County's Sewer Use Ordinance, govern the
rendering of sewer service by the County of Brunswick from the Project.
ARTICLE I
Definitions Amendments and Applicability
Section 1.1. Definitions. Capitalized terms used herein shall have the meaning set forth in the
Standard Provisions to the Sewer Service Agreement unless otherwise indicated herein
Section 1.2. Amendments. The County may from time to time amend these Rules and
Regulations; however, the County shall give each Participant notice and an opportunity to comment on the
proposed amendment.
Section 1.3. A_ pplicability. These Rules and Regulations, as amended, shall be binding on every
Participant.
ARTICLE II
Sewer Service
Section 2.1. Application for Service. Any potential Participant desiring sewer service must make
a written application to the County (upon forms to be supplied by the County), setting forth in detail the
location of the property to be served, including a map thereof, the estimated gallons per day (gpd) to be
used or allocated, and such other information as the County may require.
Section 2.2. Sewer Service Agreements. Sewer service shall be supplied to a Participant only
pursuant to a Sewer Service Agreement containing the County's Standard Provisions.
ARTICLE III
Connections and Ancilla Service Facilities
Section 3.1. Connections. Each Participant shall be responsible, at its sole cost and expense, to
make all installations of facilities necessary for connection to the Sewer System (i.e. pipelines, pump
stations and all other necessary Ancillary Service Facilities). All design plans shall be reviewed by the
County prior to submittal to the State for approval. If applicable, all fees and charges due the County for
the connection shall be due and payable prior to initiation of service at the Point(s) of Delivery.
Section 3.2. Participant's Service Facilities. The Participant's Service Facilities shall be installed
and maintained by such Participant at its sole cost and expense, but shall be subject to inspection by the
County before service is connected.
Section 3.3. Control of County Equipment. Supply lines, meters and other equipment of the
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County shall be under its exclusive control, and no persons, other than authorized employees, agents or
contractors of the County, subject to Participant inspection privileges as outlined in Section 1.7 of the
Standard Provisions to the Sewer Service Agreement, shall repair, change or interfere with them in any
way.
ARTICLE IV
Monthly Service Charges
Section 4.1. Monthly Service Charges. The County shall annually establish Monthly Service
Charges sufficient to cover all expenses for the ensuing Fiscal Year as identified in the Annual Budget for
the Sewer System. Monthly Service Charges will be determined in view of sewer use projections for each
ensuing Fiscal Year provided by Participants and on historical use data. Monthly Service Charges thus
established shall be billed to Participants by the County as hereinafter provided on the basis of actual
metered usage. The establishment and billing of Monthly Service Charges shall also reflect the payment
of Capital Charges, when applicable.
The County shall adopt an Annual Budget for the Sewer System for each Fiscal Year in
accordance with the Local Government Budget and Fiscal Control Act. Expense components of each
Annual Budget shall include:
A. Operating Expense Components.
(1) Current Expenses.
(ii) An operating and maintenance reserve.
(iii) Appropriations to repair/replacement reserves for purposes of timely correction of any
mechanical/physical deficiencies which arise out of normal system use or which are not correctable from
insurance proceeds or other monies readily available to the County. The level of such reserves shall be
based upon an annual inspection of the Sewer System and recommendations by the County's consulting
engineer.
(iv) Debt Service, including such debt service reserves and other funds, accounts and
reserves as may be required by instruments of debt authorization and such other amounts as may be
required to comply with the covenants contained in instruments of debt authorization.
(v) An allowance for depreciation or an allowance for establishing a Capital Replacement
Reserve Fund (one or the other but not both) may be included if required as a condition of debt
authorization of the County. The Capital Replacement reserve Fund would be established and
administered pursuant to Chapter 159, Art. 3, Part 2 of the North Carolina General Statutes. Funds
generated under this section for establishment of an allowance for deprecation or a Capital Replacement
Reserve Fund cannot be used for the expansion of capacity of the facilities without unanimous approval of
the Participants
B. Capital _Expense Components.
0) Reimbursements of Advances for Construction due during the Fiscal Year, which are
not reimbursed from Current Expenses.
(ii) Such other components regarding Sewer System development and growth as the
County shall identify as being necessary or appropriate.
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Notwithstanding the foregoing, Monthly Service Charges shall always be established so as to
comply with Section 1.11 of the Standard Provisions of the Sewer Service Agreement or such other
provisions of any Sewer Service Agreement controlling the establishment and billing of Monthly Service
Charges and to comply with any documents of debt authorization.
Section 4.2. System Development Charges. The County shall collect from Participants who apply
for new or expanded service after the effective date of these Rules and Regulations a System
Development Charge based on the Cost of the County's West Regional Sewer Project facilities for the
applicable Project existing at the time payment of the charge is due. Each System Development Charge
shall equal an amount which bears the same ratio to the Cost of the West Brunswick Regional Sewer
Project as the average gallons per day (gpd) of sewer capacity requested by a Participant bears to the
total average gpd of sewer capacity of the Sewer System, as determined from time to time by the County's
consulting engineer. Adjustments will be made to a System Development Charge if a Participant uses
more sewer capacity than requested. In such cases where a Participant provides sufficient guarantee of
payment, the Participant may with the consent of the County pay any System Development Charge by
periodic payments upon such terms as the County deems appropriate, including interest.
Section 4.3. Connection Char es. The County shall charge each Participant a Connection
Charge representing the Cost of any Ancillary Service Facilities provided by the County necessary for
connection to the Sewer System (although it is the general policy of the County for Participants to pay
such costs directly and perform any work necessary for connection pursuant to plans approved by the
County). Ancillary Service Facilities shall include, but are not limited to, (i) the tap to the County's pipeline,
and (ii) the meter installation. The County shall own Ancillary Service Facilities notwithstanding that the
Cost thereof is paid by a Participant. If any Participant, following the initial service connection, requests a
change in service requiring different Ancillary Service Facilities, all Cost associated with the installation of
new Ancillary Services Facilities shall be paid by the Participant.
Section 4.4. Billing and Payment Dates. The County will mail each Participant a bill not later than
the 5t' day of each month covering sewer treatment provided during the previous month. Payment of bills
is due on or before the 2& day of each month in which the bill is rendered.
ARTICLE V
Meters
Section 5.1. Sewer Service Metered. Each Participant shall be billed based on a separate meter
or, if necessary and at the option of the County, through a separate battery of meters. Where a battery of
meters is installed, the registrations of such meters shall be combined for billing purposes.
Section 5.2. Installation. Meters shall be furnished, installed and removed only by the County at
the sole cost of the Participant, and the County shall approve the location, type and size of meter(s) to be
installed. Where meters are installed upon the premises of a Participant, the Participant shall provide the
County's representatives and employees free, reasonable and safe access to the same by means of a
utility easement.
Section 5.3. Maintenance. Meters will be maintained by the County at its expense insofar as
ordinary wear is concerned, but damage to any meter caused by the Participant's facilities, operations,
negligence or carelessness or that of the Participant's own customers shall be paid by the Participant.
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Section 5.4. Tests. All meters shall be accurately tested before installation. Meters will also be
periodically tested in accordance with accepted practice, but not less than annually. The County may at
any time remove any meter for routine tests, repairs or replacement. The County shall upon request of a
Participant, and if the Participant so desires, in the Participant's presence or that of the Participant's
authorized representative, make, without charge, a test of the accuracy of the meter in use, provided the
meter has not been tested by the County within a period of nine (9) months previous of such request, and
that the Participant will agree to abide by the results of such test in the adjustment of disputed charges. A
written report of the results of the test shall be furnished to the Participant. If the test results are
acceptable, based on manufacturer's specifications and the meter has been tested within the previous
nine (9) month period, the Participant shall pay the cost of the test.
Section 5.5. Error, Whenever a test of a meter reveals it to have an average error of more than
three percent (3%), the County shall bill or refund to the Participant, as the case may be, such percentage
of the amount reflected on bills covering the consumption indicated by the meter for the previous three (3)
months, as the meter was found to be in error at the time of test, unless it can be shown to the satisfaction
of the County that the error found had existed for a greater or lesser period, in which case the adjustment
shall cover such actual period.
ARTICLE VI
COMMITTEES
Section 6.1. Oversioht Committee. There is hereby established an Oversight Committee for
the Project. Each Participant including the County shall appoint one representative and one alternate
representative to represent them on the committee. The Oversight Committee shall meet at least once
each quarter. The cost and expenses of the Oversight Committee shall be a Current Expense. The
representatives shall be entitled to elect a chairman and vice chairman. The Oversight Committee is
formed for the purpose of fostering communications between the Participants and the County. The
committee shall:
(i). Review and make recommendations relating to each Annual Budget and any capital
project budget relating to Improvements;
(ii). Review quarterly and end -of -year financial reports, each annual audit and annual
inspection report of the County relating to the Sewer System;
(iii). Request additional audits, inspections and work when deemed necessary;
(iv). Review the County's and each Participant's sewer rate structure and make
recommendations as to funding of the Capital Replacement Reserve Fund to insure that
the County and/or Participants) is capable financially of making Improvements when
needed to meet the needs of Participants;
(v). Review expansion plans of each Participant and recommend to the Participant a system
of fees that will be available for use by the County when Improvements are required by
virtue of the Participant's expansion plans (it is the policy of the County to encourage each
Participant to establish in its respective sewer ordinance a system of impact fees that not
only address expansion of the Participant's collection system but also expansions to the
Sewer System required by the collection system expansion);
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(vi). Recommend amendments to the Sewer Service Agreement, these Rules and
Regulations, the County Sewer Use Ordinance, or any Participant's Sewer Use
Ordinance;
(vii). Make recommendations concerning expansion of the Sewer System and/or the
Participant's Service Facilities;
(viii). Attempt to settle disputes between the County and the Participants or between
Participants;
(ix). Otherwise encourage cooperation between the Participants and the County and the
success of the Sewer System;
(x). Report its findings and recommendations to the governing body of each Participant.
Section 6.2. Technical Review Committee. There is hereby established a Technical Review
Committee Comprised of the Participants. Each Participant including the County shall appoint a
representative to the Technical Review Committee, which representative shall be the Participant's chief
wastewater operations and maintenance officer. The Technical Review Committee may elect a chairman,
a vice chairman and shall meet at least once in each fiscal year. The purpose of the Technical Review
Committee shall be to:
Review and evaluate construction, operation and maintenance of the Sewer System;
(ii). Make recommendations as necessary for improvement of operation and maintenance of
the Sewer System and delivery of services.
Upon adoption by a majority of the representatives on the Technical Review Committee, such
recommendations shall be submitted to the County and the Oversight Committee in writing, and the
County shall make appropriate response thereto in writing to the Technical Review Committee and
Oversight Committee.
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