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HomeMy WebLinkAboutWQ0043905_Application (FTSE)_20221005State of North Carolina DWR Department of Environmental Quality Division of Water Resources FAST TRACK SEWER SYSTEM EXTENSION APPLICATION Dh+lsion of Water Resources FTA 06-21 & SUPPORTING DOCUMENTATION Application Number: W 0 4b I ffto be completed by DWR) All items must be completed or the application will be returned I. APPLICANT INFORMATION: 1. Applicant's name: Aqua North Carolina. Inc. (company, municipality, HOA, utility, etc.) 2. Applicant type: ❑ Individual ❑ Corporation ❑ General Partnership ® Privately -Owned Public Utility ❑ Federal ❑ State/County ❑ Municipal ❑ Other 3. Signature authority's name: Michael Melton per I 5 A NCAC 02T .0106(b) Title: Engineering Manager 4. Applicant's mailing address: 202 MacKenan Court City: CAr , State: NC Zip: 2751 l-_ 5. Applicant's contact information: Phone number: (qj9) 467-8712 Email Address: mamelton(&aquaamerica.com 11. PROJECT INFORMATION: 1. Project name: Governors Village Parcel D 2. Application/Project status: ® Proposed (New Permit) ❑ Existing Permit/Project If a modification, provide the existing permit number: WQ00 and issued date: For modifications, also attach a detailed narrative description as described in Item G of the checklist. If new construction, but part of a master plan, provide the existing permit number: WQ00 3. County where project is located: Chatham 4. Approximate Coordinates (Decimal Degrees): Latitude: 35.8533' Longitude:-79.0239' 5. Parcel ID (if applicable): 19389 (or Parcel ID to closest downstream sewer) 111. CONSULTANT INFORMATION: 1. Professional Engineer: Jeff Foster License Number: 28291 Firm: CE Group, Inc Mailing address: 301 Glenwood Avenue Suite 220 City: Raleigh State: NC Zip: 27603- Phone number: (919) 367-8790 x 105 Email Address: ieff ce rou inc.com IV. WASTEWATER TREATMENT FACILITY (WWTF) INFORMATION: 1. Facility Name: Chatham Water Reclamation Facility Permit Number: NC 00056413 Owner Name: Aqua North Carolina, Inc. V. RECEIVING DOWNSTREAM SEWER INFORMATION: 1. Permit Number(s): WQ0000866 2. Downstream (Receiving) Sewer Information: 8 inch ® Gravity ❑ Force Main 3. System Wide Collection System Permit Number(s) (if applicable): WQCS DO181 Owner Name(s): Aqua North Carolina, Inc FORM: FTA 06-21 Page 1 of 5 VI. GENERAL REQUIREMENTS 1. If the Applicant is a Privately -Owned Public Utility, has a Certificate of Public Convenience and Necessity been attached? ® Yes ❑ No ❑ N!A 2. If the Applicant is a Developer of lots to be sold, has a Dev?duncr's Operational ALgreerrrent (!'OE I: DF. ' been attached? ❑ Yes ❑ No ® N/A 3. If the Applicant is a Home/Property Owners' Association, has an HDA.-TOA Operational Agreement (1: (RM: E 10A) and supplementary documentation as required by 15A NCAC 02T.0115(c) been attached? ❑ Yes ❑ No ® NIA 4. Origin of wastewater: (check all that apply): ❑ Residential (Individually Owned) ® Retail (stores, centers, malls) ❑ Car Wash ❑ Residential (Leased) ® Retail with food preparation/service ❑ Hotel and/or Motels ❑ School / preschool 1 day care ❑ Medical i dental I veterinary facilities ❑ Swimming Pool/Clubhouse ❑ Food and drink facilities ❑ Church ❑ Swimming Pool/Filter Backwash ® Businesses I offices ! factories ❑ Nursing Home ❑ Other (Explain in Attachment) 5. Nature of wastewater : 15% Domestic 85 % Commercial 0 % Industrial (Sec 15A NC"AC 021' &JQ3E201) If Industrial, is there a Pretreatment Program in effect? ❑ Yes ❑ No 6. Has a flow reduction been approved under 155A Nf.A{_p 1. 0.1_i.4fti? ❑ Yes ® No ➢ If yes, Provide a copy of flow reduction approval letter with this application 7. Summarize wastewater generated by project: Establishment Type (see 02T.0114(t)) Daily Design Flow'"" No. of Units Flow Full Service Restaurant 40 gal,`seat 120 4800 GPD Single Service Restaurant 20 gallseat 120 2400 GPD Gen Retail (no food service) 100 gall1,000 SF 5500 550 GPD Gen Office 25 gal?employee 30 750 GPD gal/ GPD gal/ GPD Total 8500 GPD a See 15.A NCAC 02T .0114tb1, (d). (0 11 and (e)(2) for caveats to wastewater design flow rates (i.e., minimum flow per dwelling; proposed unknown non-residential development uses; public access facilities located near high public use areas; and residential property located south or east of the Atlantic Intracoastal Waterway to be used as vacation rentals as defined in Q3, 4 A-4). b Per 15A NCAC 02T .0114(c), design flow rates for establishments not identified [in table 15A NCAC 021.0 E 14] shall be determined using available flow data, water using fixtures, occupancy or operation patterns, and other measured data. 8. Wastewater generated by project: 0 GPD (per I S�QT .0114) ➢ Do not include future flows or previously permitted allocations If permitted flow is zero, please indicate why: ❑ Pump Station/Force Main or Gravity Sewer where flow will be permitted in subsequent permits that connect to this line. Please provide supplementary information indicating the approximate timeframe for permitting upstream sewers with flow. ❑ Flow has already been allocated in Permit Number: Issuance Date: ❑ Rehabilitation or replacement of existing sewers with no new flow expected ❑ Other (Explain): FORM: FTA 06-21 Page 2 of 5 VII. GRAVITY SEWER DESIGN CRITERIA (If Applicable) - 02T .0305 & MDC (Gravity Sewers): 1. Summarize gravity sewer to be permitted: Size (inches) Length (feet) Material 8 56 PVC ➢ Section II & III of the MDC for Permitting of Gravity Sewers contains information related to design criteria ➢ Section III contains information related to minimum slopes for gravity sewer(s) ➢ Oversizing lines to meet minimum slope requirements is not allowed and a violation of the MDC VIII. PUMP STATION DESIGN CRITERIA (If Applicable) — 02T .0305 & MDC (Pump Stations/Force Mains): PROVIDE A SEPARATE COPY OF THIS PAGE FOR EACH PUMP STATION INCLUDED IN THIS PROJECT 1. Pump station number or name: NIA 2. Approximate Coordinates (Decimal Degrees): Latitude: Longitude: 3. Total number of pumps at the pump station: 3. Design flow of the pump station: millions gallons per day (firm capacity) ➢ This should reflect the total GPM for the pump station with the largest pump out of service. 4. Operational point(s) per pump(s): gallons per minute (GPM) at _ feet total dynamic head (TDH) S. Summarize the force main to be permitted (for this Pump Station): Size (inches) Length (feet) Material If any portion of the force main is less than 4-inches in diameter, please identify the method of solids reduction per MDCPSFM Section 2.01C.1.b. ❑ Grinder Pump ❑ Mechanical Bar Screen ❑ Other (please specify) 6. Power reliability in accordance with ISA NCAC D2T .03 41 Lh1i I }: ❑ Standby power source or ❑ Standby pump ➢ Must have automatic activation and telemetry- 15A NCAC 02T.0305(h)(1)(B)_ ➢ Required for all pump stations with an average daily flow greater than or equal to 15,000 gallons per day ➢ Must be permanent to facility and may not be portable Or if the pump station has an average daily flow less than 15,000 gallons per day 15A NCACO2T.0305(h)(1)(C): ❑ Portable power source with manual activation, quick -connection receptacle and telemetry - or ❑ Portable pumping unit with plugged emergency pump connection and telemetry: ➢ Include documentation that the portable source is owned or contracted by the applicant and is compatible with the station. ➢ If the portable power source or pump is dedicated to multiple pump stations, an evaluation of all the pump stations' storage capacities and the rotation schedule of the portable power source or pump, including travel timeframes, shall be provided as part of this permit application in the case of a multiple station power outage. FORM: FTA 06-21 Page 3 of 5 IX. SETBACKS & SEPARATIONS — (02B .0200 & 15A NCAC 02T .0305(f)): 1. Does the project comply with all separations/altemativcs found in ISA NCAC 42T _WQ5i0.8c ? ® Yes ❑ No 15A NCAC 02T.0305(f) contains minimum senarations that shall he nrnvided fnr sewer evsterns: Setback Parameter* Separation Required Storm sewers and other utilities not listed below (vertical) 18 inches Water mains (vertical - water over sewer preferred, including in benched trenches) 18 inches 'Water mains (horizontal) 10 feet Reclaimed water lines (vertical - reclaimed over sewer) 18 inches Reclaimed water lines (horizontal - reclaimed over sewer) 2 feet **Any private or public water supply source, including any wells, WS-I waters of Class I or Class I I impounded reservoirs used as a source of drinking water, and associated wetlands. 100 feet **Waters classified WS (except WS-1 or WS-V), B, SA, ORW, HQW, or SB from normal high water (or tide elevation) and wetlands associated with these waters (see item IX.2) 50 feet "Any other stream, lake, impoundment, or ground water lowering and surface drainage ditches, as well as wetlands associated with these waters or classified as WL. 10 feet Any building foundation (horizontal) 5 feet Any basement (horizontal) 10 feet Top slope of embankment or cuts of 2 feet or more vertical height 10 feet Drainage systems and interceptor drains 5 feet Any swimming pools 10 feet Final earth grade (vertical) 36 inches y it noncompliance with 02T.0305(f) or {g}, see Section XI of this application * I SA NCAC 02T,305{g) contains alternatives where separations in 02T.0305LO cannot be achieved. Please check "yes" above if these alternatives are used and provide narrative information to explain. **Stream classifications can be identified using the Division's NC Syrf & WWtrClassificatinns webpftyq; 2. Does this project comply with the minimum separation requirements for water mains? ®Yes []No ❑ MA ➢ If no, please refer to 15A NCAC I8C.0906(f) for documentation requirements and submit a separate document, signed/scaled by an NC licensed PE, verifying the criteria outlined in that Rule. 3. Does the project comply with separation requirements for wetlands? ® Yes [-]No ❑ N/A ➢ Please provide supplementary information identifying the areas of non-conformance. ➢ Seethe Division's draft separation requirements for situations where separation cannot be met. ➢ No variance is required if the alternative design criteria specified is utilized in design and construction. 4. Is the project located in a river basin subject to any State buffer rules? ® Yes Basin name: Cape Fear ❑ No If yes, does the project comply with setbacks found in the river basin rules per M NCAC ? ® Yes ❑ No ➢ This includes Trout Buffered Streams per 15A NCAC 2B_02Q2 5. Does the project require coverage/authorization under a 404 Nationwide/individual permits ❑ Yes ®No or 401 Water Quality Certifications? ➢ Please provide the permit number/permitting status in the cover letter if coverag0authorization is required. 6. Does project comply with 15A NCAC 02T;E}l0_ Si 6) (additional permits/certifications)? ® Yes ❑ No Per I NCAC 02T.0105(c, directly related environmental permits or certification applications must be being prepared, have been applied for, or have been obtained. Issuance of this permit is contingent on issuance of dependent permits (erosion and sedimentation control plans, stormwater management plans, etc.). 7. Does this project include any sewer collection lines that are deemed "high -priority?" ❑ Yes ® No Per A _ICAO 2Q T_04V, "high -priority sewer" means any aerial sewer, sewer contacting surface waters, siphon, or sewers positioned parallel to streambanks that are subject to erosion that undermines or deteriorates the sewer. Siphons and sewers suspended through interference/conflict boxes require a variance approval. ➢ If yes, include an attachment with details for each line, including type (aerial line, size, material, and location). High priority lines shall be inspected by the permittee or its representative at least once every six -months and inspections documented per 15A NCAC 02T.0403(a)(5) or the permittee's individual System -Wide Collection permit. FORM: FTA 06-21 Page 4 of 5 X. CERTIFICATIONS: I. Does the submitted system comply with I SA NCAC 02.7 the Min �rnum Design Criteria for the Perrpitting a f Pump Star_. ions d Fo Mains latest VeYbi n), and the ravi we izti urn csi n I riteria (IaW version) as applicable? ® Yes ❑ No If no, for projects requiring a single variance, complete and submit the Variance/Alternative Design Request application (VADC 10-14) and supporting documents for review to the Central Office. Asomal of the request will be issued oa ur n with the ro theand miects reullftz a variance a royal may subject o lousEer review tines. For profaft reulWn two or more vairiances gr where the variance is detIrmined bI the DiAsion to be a O-P—Mcaut Portion of the nroieCL the full technical review is required. 2. Professional Engineer's Certification: I, Jeff Foster , attest that this application for `Governors Village Parcel D (Professional Engineer's name firm Application Item 111.1.) (Project Name firm Application Item 1L 1) has been reviewed by me and is accurate, complete and consistent with the information supplied in the plans, specifications, engineering calculations, and all other supporting documentation to the best of my knowledge. I further attest that to the best of my knowledge the proposed design has been prepared in accordance with the applicable regulations, imumi3tsii?n"Criteria for Gravity Sewers f 3Etest version}. and the i ri r the t-Tra k c tt" Of Pgut S WiOas and orce Mains(latest vcrsigq. Although other professionals may have developed certain portions of this submittal package, inclusion of these materials under my signature and seal signifies that I have reviewed this material and have judged it to be consistent with the proposed design. NOTE — In accordance with General Statutes 143-215.6A and 143-215.613, any person who knowingly makes any false statement, representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to exceed $10,000, as well as civil penalties up to $25,000 per violation. Misrepresentation of the application information, including failure to disclose any design non-compliance with the applicable Rules and design criteria, may subject the North Carolina -licensed Professional Engineer to referral to the licensing board. (21 NCAC J&(%701) �•". North Carolina Professional Engineer's seal, signature, and date: '0� dLt I ,` 2oAC SEAL i 028291 an 3. Applicant's Certification per 15A NCAC 02T .0106(b): I, Michael Melton__, attest that this application for _ Governors Village Parcel D (Signature Authority Name hom Application Item U.) (Project Name from Application Item 11.1) attest that this application has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that if all required parts of this application are not completed and that if all required supporting documentation and attachments are not included, this application package is subject to being returned as incomplete. I understand that any discharge of wastewater from this non -discharge system to surface waters or the land will result in an immediate enforcement action that may include civil penalties, injunctive relief, and/or criminal prosecution. I will make no claim against the Division of Water Resources should a condition of this permit be violated. I also understand that if all required parts of this application package are not completed and that if all required supporting information and attachments are not included, this application package will be returned to me as incomplete. NOTE — In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement, representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to exceed $10,000 as well as civil penalties up to $25,000 per violation. Signature: -� FORM: FTA 06-21 Date: 09/14/2022 Page 5 of 5 NC Degt of Environmental Quart State of North Carolina "^ r, n Department of Environmental Quality utr T v 2022 Division of Water Resources D W, R Qlvlslon of Water Resources Raleigh Regional l Tracking for Sewer Extension Applications V (FTSE 10-18) Entity Requesting Allocation: GV Investments LLC Project Name for which flow is being requested: Governors Villa a Parcel D More than one FTSE may be required for a single project if the owner of the WWTP is not responsible for all pump stations along the route of the proposed wastewater flow. 1. Complete this section only if you are the owner of the wastewater treatment plant. a. WWTP Facility Name: Chatham Water Reclamation Facility b. WWTP Facility Permit #: NC 00056413 All flows are in MGD c. WWTP facility's permitted flow 0.350 d. Estimated obligated flow not yet tributary to the WWTP 0.0096 e. WWTP facility's actual avg. flow 0.0994 f. Total flow for this specific request 0.008500 g. Total actual and obligated flows to the facility 0.1175 h. Percent of permitted flow used 33.57% H. Complete this section for each pump station you are responsible for along the route of this proposed wastewater flow. List pump stations located between the project connection point and the WWTP: (A) (B) (L) (D)=(B+C) (E)-(A-D) Design Obligated, Pump Pump Average Approx. Not Yet Total Current Station Station Firm Daily Flow** Current Tributary Flow Plus (Name or Permit Capacity, * (Firm 1 pi), Avg. Daily Daily Flow, Obligated Available Number) No. MGD MGD Flow, MGD MGD Flow Capacity— LS-1 Pre1990 uk .288 0.1152 .0682 .0181 .0863 .0289 * The Firm Capacity (design flow) of any pump station is defined as the maximum pumped flow that can be achieved with the largest pump taken out of service. ** Design Average Daily Flow is the firm capacity of the pump station divided by a peaking factor (pf) not less than 2.5, per Section 2.02(A)(4)(c) of the Minimum Design Criteria. *** A Planning Assessment Addendum shall be attached for each pump station located between the project connection point and the WWTP where the Available Capacity is < 0. Downstream Facility Name (Sewer): Carolina Meadows Downstream Permit Number: Unknown Page 1 of 6 FTSE 10-18 III. Certification Statement: i Michael A. Melton certify to the best of my knowledge that the addition of the volume of wastewater to be permitted in this project has been evaluated along the route to the receiving wastewater treatment facility and that the flow from this project is not anticipated to cause any capacity related sanitary sewer overflows or overburden any downstream pump station en route to the receiving treatment plant under normal circumstances, given the implementation of the planned improvements identified in the planning assessment where applicable. This analysis has been performed in accordance with local established policies and procedures using the best available data. This certification applies to those items listed above in Sections I and II plus all attached planning assessment addendums for which I am the responsible party. Signature of this form certifies that the receiving collection system or treatment works has adequate capacity to transport and treat the proposed new wastewater. Signing Offlcial Signal Enginexing Manager Title 09/14/2022 Date Page 2 of 6 FTSE 10- 18 S, rya AL r I EDWAR) Ds GO. Go ur? s 7: V\ N L EAGj 0 z Riggsbee .� 1� Cem 0 NC Dept of Environmental QualitN NORTH r: elt T " 5 2022 FARRINGTON, NC UL u 0 1000, 2000' 2016 Gov a V'11 NSN. 7 6 4 3 0 1 6 3 7 8 7 4 1 SCALE: 1 1,000' USG%S MAP NGAREFNO. USGSX24K1 5059 April 9, 2020 I R 74- -ED A 3 / 'RDSRfD GOVER NE'RS O'Q G VERNORS i►�h� P c� T`P �. n t, rn o� f Cem ' o .tAOE`� L NORTH FARRINGTON, NC O 1000, 2000' 2D16 Governors Village Parcel ,.D,. I�IIII���1�17��III���II�III�I�I��II�III1ll�IW��II SCALE: 1"= 1,000' USGS MAP NSN843018378741 NREFNO. USGSX24K15059 April 9, 2020 REVISED March 3, 2023 y as � U a c o � o � o U � z NC Dept of Environmental Q t't: E GROUP � T " 5 2022 301 GLENWOOD AVENUE, SUITE 220 RALEIGH, NC 27603 Phone: (919) 367-8790 x-105 Raleigh Regional Off7ce E-Mail: jeff�cegroupinc.com Memorandum To: NCDEQ Division of Water Resources From: Jeff Foster, PE, CE Group Date: October 4, 2022 Re: Corporation Documentation for Aqua North Carolina, Inc. Information taken from http:G'www.sosno.gnv on October 461, 2022. Business Corporation Legal Name Aqua North Carolina, Inc. Prev Legal Name Hydraulics, Limited Prev Legal Name Hydraulics, Ltd. Information Sos1d: 0072603 Status: Current -Active O Date Formed. 7/16/1965 Citizenship: Domestic Fiscal Month: December Annual Report Due Date: April 15th Annual Report Status: Current Registered Agent: CT Corporation y em NC Dept of Environmental Qua" G,("T 0 5 2022 Raleigh Regional Office CE GROUP October 3, 2022 NCDEQ/DWR Water Quality Section Fast Track Unit 3800 Barrett Drive Raleigh, NC 27609 Re: Governors Village Parcel D Public Sanitary Sewer Extension Permit Please find attached the following information for the requested extension permit: - Application Fee: $480 - Permit Cover Letter - Fast Track Sewer System Extension Application (FTA 06-21) — Original and Copy - Flow Tracking for Sewer Extension Applications (FTSE 10-18) Original and Copy - USGS Topographic Map - Vicinity Map - Documentation from NC Secretary of State's office for Corporation - Certificate of Public Convenience and Necessity - Electronic Thumb Drive (Above Info) This information is provided as required for processing of the requested permit for the 8" Public Sanitary Sewer Extension for Governors Village Parcel D in Chapel Hill, Chatham County, North Carolina. This main will service commercial retail and office space. Respectfully Submitted, CE Group, Inc_ Jeff Foster, PE Project Manager 301 Glenwood Avenue I Raleigh, NC 27GO3 I (919) 3G7-8790 I www.cegroupinc.com TO: NCDENR — DWQ Raleigh Regional Office 3800 Barrett Drive Raleigh, NC 27609 ATTENTION Permitting NC Dept of Environmental Quaiit CE GROUP OCT 0 5 2022 Raleigh Regional Office 301 GLENWOOD AVENUE, SUITE; RALEIGH, NC 27603 Phone: (919) 367--8790 x-105 E-Mail.-la Qlceyroupinc.com Transmittal DATE: 1014/22 PROJECT NO: 127-147 Governors Village Parcel D Chapel Hill, NC Public Extension Quantity Drawing No. Description 1 Check #11741 Application Fee ($480) 1 Project Narrative 2 1 copy/1 original Fast Track Sewer System Extension Application (FTA 06-21) 2 1 copy/1 original Flow Tracking for Sewer Extension Applications (FTSE 10-18) 1 USGS Overall Area Map 1 Vicinity Location Map NC Secretary Articles of Incorporation Y Y Certificate of Public Convenience and Necessity Thumb Drive with attachments 1 1 1 REMARKS Please let us know if you require any additional information. STATE OF NORTH CAROLINA UTILITIES COMMISSION RALEIGH APPENDIX A-14 DOCKET NO. W-218, SUB 341 BEFORE THE NORTH CAROLINA UTILITIES COMMISSION AQUA NORTH CARQLINA. INC. is granted this CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY to provide water utility service in BEECHWOOD COVE CEDAR TERRACE CHATHAM HIDDEN VALLEY POLK'S LANDING POLICS TRAIL AND WOODBRIDGE SUBDIVISIONS AND to provide sewer utility service in CAROLINA MEADOWS COUNTY LINE PLAZA GOVERNORS CLUB. VERN R FOREST GOVERNORS VILLAGE THE LEGACY AT JO DAN LAKE T E PRESERVE AT JORDAN LAKE AND WESTFALL SUBDIVISIONS Chatham County, North Carolina subject to any orders, rules, regulations, and conditions now or hereafter lawfully made by the North Carolina Utilities Commission, ISSUED BY ORDER OF THE COMMISSION. This the 291' day of January, 2013. NORTH CAROLINA UTILITIES COMMISSION A01L �XNUJV\* Gail L. Mount, Chief Clerk STATE OF NORTH CAROLINA UTILITIES COMMISSION RALEIGH APPENDIX A-15 DOCKET NO. W 218, SUB 341 BEFORE THE NORTH CAROLINA UTILITIES COMMISSION AQUA NORTH CAROLINA, INC. is granted this CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY to provide water and sewer utility service in CHAPEL RIDGE INCLUDING PHASE 2AAND 2B LE PARK PLAZA OLVA D FARMS Du am and Chatham Counties),REE E LAUREL RIDGE, BANE ERPJECT. THE BLUFFS PHASE 1 THE PARKS AT MEADOWVIEW AND WOODLANDS SUBDIVISIONS Chatham County, North Carolina subject to any orders, rules, regulations, and conditions now or hereafter lawfully made by the North Carolina Utilities Commission. ISSUED BY ORDER OF THE COMMISSION. This the 29th day of January, 2013. NORTH CAROLINA UTILITIES COMMISSION A6L l.'C bul' 4 Gail L. Mount, Chief Clerk STATE OF NORTH CAROLINA UTILITIES COMMISSION RALEIGH DOCKET NO. W-218, SUB 216 DOCKET NO. W-1118, SUB 3 BEFORE THE NORTH CAROLINA UTILITIES COMMISSION In the Matter of Application by Aqua North Carolina, Inc., Post Office Drawer 4889, Cary, North Carolina 27519, and Chatham Water Reclamation Company, Inc., for Authority to Transfer the Sewer Utility Franchises Serving Governors Village Subdivision, Governors Forest Subdivision, Governors Village Townhomes, and Governors Village Offices in Chatham County, North Carolina, from Chatham to Aqua and for Approval of Rates 11,q,Z) S ORDER ACCEPTING BOND, APPROVING TRANSFER,AND REQUIRING CUSTOMER NOTICE BY THE COMMISSION: On June 28, 2005, Aqua North Carolina, Inc. (Aqua), and Chatham Water Reclamation Company, LLC (Chatham Water), filed an application with the Commission seeking authority to transfer the wastewater system assets and franchises for Governors Village Subdivision, Governors Forest Subdivision, Governors Village Townhomes, and Governors Village Offices in Chatham County, North Carolina, from Chatham Water to Aqua, and for approval of rates. On September 21, 2005, the Commission issued an Order requiring customer notice, indicating that the Commission may decide this matter without a public hearing if no significant protests were received subsequent to customer notice. The certificate of service was filed in Docket No, W-1118, Sub 3, on October 4, 2005. No customer complaints have been received. On the basis of the verified application and the records of the Commission, the Commission makes the following FINDINGS OF FACT 1. Aqua presently holds water and sewer utility franchises serving approximately 11,000 customers. Aqua's record of service is satisfactory. 2. Chatham Water currently serves approximately 232 residential, 242 apartment, 71 townhome, and 8 commercial customers. 3. Whippoorwill, LLC (Whippoorwill), owns the wastewater treatment plant for the Chatham Water service areas, which also serves Carolina Meadows, Inc., a continuing care retirement community located near the Chatham Water service areas. Chatham Water owns a one -third -membership interest in Whippoorwill, and Carolina Meadows owns the remaining two-thirds interest. 4. Aqua has entered into an Asset Purchase Agreement with Chatham Water, dated May 12, 2005 (Chatham Water APA), and an Assets Purchase Agreement with Carolina Meadows, dated June 2, 2005 (Carolina Meadows APA), to purchase their respective interests in Whippoorwill together with other assets used in the operation of the treatment facility. By virtue of these agreements, Aqua will own 100% of the treatment facility and other assets used in its operation to serve both the existing Chatham Water franchise areas, and, on a bulk basis, Carolina Meadows. 5. Pursuant to the Carolina Meadows APA, Aqua will furnish Carolina Meadows bulk treatment service at a rate of $2.50 per 1,000 gallons for a period of five years after Closing, as that term is defined in the Carolina Meadows APA. The rate will increase to a maximum of $5.50 per 1,000 gallons for the three year period following Aqua's next general rate case after the five-year term. 6. In a letter to the Public Staff dated November 21, 2005, Aqua agreed to reduce the contract purchase price to be paid to Chatham Water from $373,939 to $258,578, the combined net plant in service at June 30, 2005, for both Chatham Water and Carolina Meadows as calculated by the Public Staff. The Public Staff recommended rate base treatment for the reduced purchase price, the $2,000 reimbursement for attorney's fees for Chatham Water, the $2,000 reimbursement for attorney's fees for Carolina Meadows, and the $95,000 purchase price for the Carolina Meadows' land. In all other respects, the agreements with Chatham Water and Carolina Meadows remain unchanged. In an e-mail message to the Public Staff dated November 21, 2005, Chatham Water confirmed its agreement with Aqua regarding the reduced lump sum portion of the purchase price. 7. In consideration of the rate base treatment discussed above, Aqua also agreed that in the event of a system specific rate case during the time period of the "bulk treatment rate" as described in Section 1.3(d) of the Carolina Meadows APA, the difference between the revenues generated by the bulk treatment rate and the revenue requirement for Carolina Meadows, calculated based on rate base, expenses, and allowed return, will be imputed in order to prevent a negative impact on the non -Carolina Meadows customers. The amount of rate base used in determining the calculated revenue requirement for Carolina Meadows shall include, but not be limited to, the net plant in service of the assets acquired from Carolina Meadows, which is $392,250 as of June 30, 2005, the reimbursement of attorneys fees for Carolina Meadows, and an allocation of the $95,000 purchase price for the land. 12. That the Notice to Customers, attached hereto as Appendix C, be mailed with sufficient postage. or hand delivered by Aqua to all customers affected by the transfer no later than 15 days after the date of this Order; and that Aqua submit to the Commission the attached Certificate of Service properly signed and notarized not later than 30 days from the date of this Order. ISSUED BY ORDER OF THE COMMISSION. This the 9`" day of December , 2005. NORTH CAROLINA UTILITIES COMMISSION ,A04 l -Mow c4 &120M.01 Gail L. Mount, Deputy Clerk ASSETS PURCHASE AGREEMENT FOR THE ACQUISITION OF THE WASTEWATER SYSTEM ASSETS OF CAROLINA MEADOWS, INC. BY AQUA NORTH CAROLINA, INC. Dated as of cZ 2005 wastewater system in the possession of Seller, and (f) alI of Seller's information, files, records, data, plans, system maps, contracts and recorded knowledge, including property records, related to the foregoing. 1.3 Consideration The purchase price for the Wastewater System Assets will consist of the following payments; (a) At Closing, a lump sum payment from Buyer to Seller of Minty -Five Thousand Dollars ($95,000) . (b) No contingent payments of any nature whatsoever will be due in addition to the lump sum payment at Closing. (c) At Closing, reimbursement of Seller's legal fees not to exceed Two Thousand DolI2,000). Any additional legal fees shall be the sole responsibility ofFieller. (d) As additional consideration, Buyer will furnish Seller a bulk treatment rate of $2.50 per 1,000 gallons for a period of five years after Closing. The rate will increase to a maximum of $5.50 per 1,000 gallons for the three year period following Buyer's next general rate case after the five year term. Buyer will install an influent flow meter measuring incoming flow from the Carolina Meadows Community and will provide the meter reading to Seller with each billing. Unless otherwise agreed, the purchase price at Closing shall be paid via wire transfer of immediately available funds, to the account provided by Seller prior to the Closing. 1.4 Non -Assumption of Liabilities With the exception of the obligation to provide wastewater service after Closing and the assumed liabilities and contractual obligations specified herein, all liabilities and obligations of Seller shall remain the sole responsibility of Seller. The Buyer shall not assume and shall not be liable for any liabilities or obligations of Seller of any nature whatsoever, whether express or implied, fixed or contingent, save and except for the obligation to provide said utility service. Buyer shall not be responsible for any business, occupation, withholding or similar tax, or for any income, sales, use, value-added or similar taxes related to any period, or transaction occurring during any period, before the Closing Date. 2. Closing Closing hereunder ("the Closing") shall tape place at the offices of the Attorney for Buyer at 17 IVII Sanford. Holshouser Aflomeys at Law 59"TOR TERRYSANFORD (191r 1"s) GOVERNOR MUES E HOLSHOUSER, JR. December 22, 2005 Ms. Geneva Thigpen, Chief Clerk North Carolina Utilities Commission 430 North Salisbury Street Raleigh, North Carolina 27603-5918 FILED IAN U 4 2006 N.0 LYAim Com-mmim Re: Application of Aqua North Carolina, Inc, and Chatham Water Reclamation Company, Inc. Authority to Transfer Sewer Utility Franchises Dockets W-218, Sub 216 and W-1118, Sub 3 Dear Ms. Thigpen: The Order Approving Transfer entered in the above dockets required Aqua North Carolina, Inc. to notify the Commission of the date of closing. Please be advised that the closing took place on December 21, 2005 with the transfer being effective at 12:01 am today. Please advise if you need anything further in this regard. eke,, Sincerely, 06 SANFORD HOLSHOUSER LLP La ce A. Cobb CC: Neil R. PhillipsC Elizabeth Denning Szafran SANFORD HOLSHOUSER LLP ONE EXCHANGE PLAZA, 219 FAYETTEVILLE STREET MALL, SUITE 1000,'RAMIGH, NORT4CAROLINA 27601 POST OFFICE BOX 2447, kALEIGH, NORTH CARPIJNA 27602 ✓✓ 939.755.1800 TELEPHONE 91 02�272 FACSIMILE ww AsankWhobhoaser eom