NC0057703_Permit Issuance_20020125

State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
Michael F. Easley, Governor
William G. Ross, Jr., Secretary
Gregory J. Thorpe, Ph.D., Acting Director
January 25, 2002
Mr. Glenn LaBrecque
AquaSource, Inc.
6960 Professional Parkway East
Suite 400
Sarasota, Florida 34240
1 • •
NCDENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
Subject: Issuance of NPDES Permit NCO057703
Fairways Utilities, Inc.
The Cape Golf & Raquet Club WWTP
New Hanover County
Dear Mr. LaBrecque:
Division personnel have reviewed and approved your application for renewal of the subject
permit. Accordingly, we are forwarding the attached NPDES discharge permit. This permit is
issued pursuant to the requirements of North Carolina General Statute 143-215.1 and the
Memorandum of Agreement between North Carolina and the U.S. Environmental Protection
Agency dated May 9, 1994 (or as subsequently amended).
This portion of the Cape Fear River is listed as an impaired stream on North Carolina's 303(d)
list. This means that the stream does not meet all water quality standards. Ultimately, the
removal of this discharge may be necessary.
Prior to expansion above 0.26 MGD, the permittee shall submit a detailed analysis of all available
means to dispose of this facility's wastewater. This Engineering Alternatives Analysis (EAA) shall
be prepared .in compliance with the Division's guidance document for EAAs. If no EAA is
submitted, the Division may reopen and modify this permit to increase monitoring frequencies or
change the effluent limits as necessary to protect the receiving stream. (Refer to A.(3.)).
If any parts, measurement frequencies or sampling requirements contained in this permit are
unacceptable to you, you have the right to an adjudicatory hearing upon written request within
thirty (30) days following receipt of this letter. This request must 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 (6714 Mail Service Center, Raleigh, North Carolina 27699-
6714). Unless such demand is made, this decision shall be fmal and binding.
Please note that this permit is not transferable except after notice to the Division. The Division
may require modification ,or revocation and reissuance of the permit. This permit does not affect
the legal requirements to obtain other permits which may be required by the Division of Water
Quality or permits required by the Division of Land Resources, the Coastal Area Management
Act or any other Federal or Local governmental permit that may be required.
1617 Mail Service Center, Raleigh, North Carolina 27699-1617 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer VISIT US ON THE INTERNET @ httpJ/h2o.enr.state.ne.us/NPDES

If you have any questions concerning this permit, please contact Christie Jackson at telephone
number [phone], extension 538.
Sincerely,
ORIGINAL SIGNED B�
.USAN A, WILS®N'
Gregory J. Thorpe, Ph.D.
cc: Central Files
Wilmington Regional Office/Water Quality Section
NPDES Unit
Point Source Compliance Enforcement Unit

Permit NCO057703
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
PERMIT
TO DISCHARGE WASTEWATER UNDER THE
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
In compliance with the provision of North Carolina General Statute 143-215.1, other lawful
standards and regulations promulgated and adopted by the North Carolina Environmental
Management Commission, and the Federal Water Pollution Control Act, as amended,
AquaSource, Inc.
is hereby authorized to discharge wastewater from a facility located at the
Fairways Utilities, Inc.
The Cape Golf & Racquet Club
900 Cape Boulevard
Wilmington
New Hanover County
to receiving waters designated as the Cape Fear River in the Cape Fear River Basin
in accordance with effluent limitations, monitoring requirements, and other
conditions set forth in Parts I, II, III and IV hereof.
This permit shall become effective March 1, 2002.
This permit and authorization to discharge shall expire at midnight on December 31, 2006.
Signed this day January 25, 2002.
ORIGIN& SIGNED By
SUSAN A. WILSO"
Gregory J. Thorpe, Ph.D., Acting Director
Division of Water Quality
By Authority of the Environmental Management Commission

Permit NCO057703
SUPPLEMENT TO PERMIT COVER SHEET
AquaSource, Inc. is hereby authorized to:
1. Continue to operate an existing 0.260 MGD wastewater treatment system with
the following components:
♦ Influent pump station
♦ Bar screen
♦ Flow splitting device
♦ Four extended aeration package treatment plants
♦ Aerated sludge holding tank
♦ Tablet chlorination
♦ Chlorine contact chamber
♦ Recording flow meter
♦ Effluent pump station
♦ Eight -inch force main (approximately 7750 feet)
The facility is located at Fairways Utilities, Inc. (The Cape Golf & Racquet Club)
at 900 Cape Boulevard, Wilmington in New Hanover County.
2. After receiving an Authorization to Construct from the Division of Water Quality,
expand the wastewater treatment plant capacity to 0.350 MGD, and
3. Discharge from said treatment works at the location specified on the attached
map into the Cape Fear River, classified SC waters in the Cape Fear River Basin.

Facility Information
Latitude:
34°04'34" Sub -Basin: 03-06-17
Longitude:
77'55'36'
Quad Name:
Carolina Beach
Stream Class:
Sc
Receiving Stream:
Cape Fear River
Facility
h-
y
Location
The Cape Golf & Racquet Club
�o
N
/ L/ {�
New Hanoveranover County

Permit NCO057703
A. (I.) EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS — FINAL
During the period beginning on the effective date of this permit and lasting until expansion
above 0.260 MGD or expiration, the Permittee is authorized to discharge from outfall 001.
Such discharges shall be limited and monitored by the Permittee as specified below:
EFFLUENT
CHARACTERISTICS..;
LIMITS-_
`. MONITORING REQUIREMENTS-
Monthly
Avera e. =-,
Weekly -
. Avera a .;
Dilly -
Maximum
Measurement
:. Frequency,
Sample Type
Sample Location
Flow
0.260MGD
Continuous
Recording
Influent or. Effluent
BOD, 5-day (20°C)
30.0 mg/L
45.0 mg/L
Weekly
Composite
Effluent
Total Suspended Residue
30.0 mg/L
45.0 mg/L
Weekly
Composite
Effluent
NIi3 as N
2/Month
Composite
Effluent
Fecal Coliform (geometric mean)
200/100 ml
400/100 ml
Weekly
Grab
Effluent
Total Residual Chlorine
2/Week
Grab
Effluent
Temperature (°C)
Weekly
Grab
Effluent
Total Nitrogen (NO2+NO3+TKN)
Quarterly
Composite
Effluent
Total Phosphorus
Quarterly
Composite
Effluent
pH,
Weekly
Grab
Effluent
Footnotes:
1. The pH shall not be less than 6.5 standard units nor greater than 8.5 standard units.
There shall be no discharge of floating solids or visible foam in other than trace amounts

Permit NCO057703
A. (2.) EFFLUENT LDETATIONS AND MONITORING ' REQUIREMENTS - FINAL
During the period beginning upon expansion above 0.260 MGD and lasting until
expiration, the Permittee is authorized to discharge from outfall 001. Such discharges
shall be limited and monitored by the Permittee as specified below:
EFFLUENT- ' '.
CHARACTERISTICS
LIMITS
MONITORING REQUIREMENTS -
:Monthly .°
.,
Average ,,' . '
;. Weekly
, ..Avers a ,.
Daily
Maximum;.
Measurement
Frequency.;
Sample Type,
Sample location
Flow
0.350 MGD
Continuous
Recording
Influent or Effluent
BOD, 5-day (20°C)
(April 1— October 31
5.0 mg/L
7.5 mg/L
Weekly
Composite
Effluent
BOD, 5-day (20°C)
November 1— March 31
10.0 mg/L
15.0 mg/L
Weekly
Composite
Effluent
Total Suspended Residue
30.0 mg/L
45.0 mg/L
Weekly
Composite
Effluent
NH3 as N
(April 1— October 31
2.0 mg/L
2/Month
Composite
Effluent
NH3 as N
November 1— March 31
4.0 mg/L
2/Month
Composite
Effluent
Fecal Coliform (geometric mean)
200/100 ml
400/100 ml
Weekly
Grab
Effluent
Total Residual Chlorine
2/Week
Grab
Effluent
Temperature (QC)
Weekly
Grab
Effluent
Total Nitrogen (NO2+NO3+TKN)
Quarterly
Composite
Effluent
Total Phosphorus
Quarterly
Composite
Effluent
pH'
Weekly
Grab
Effluent
Footnotes:
1. The pH shall not be less than 6.5 standard units nor greater than 8.5 standard units.
There shall be no discharge of floating solids or visible foam in other than trace amounts

Permit NCO057703
A. (3.) ENGINEERING ALTERNATIVES ANALYSIS REQUIREMENT
Prior to expansion above 0.26 MGD, the permittee shall submit a detailed analysis of all
available means to dispose of this facility's wastewater. This Engineering Alternatives
Analysis (EAA) shall be prepared in compliance with the Division's guidance document for
EAAs.
If no EAA is submitted, the Division may reopen and modify this permit to increase
monitoring frequencies or change the effluent limits as necessary to protect the receiving
stream.

Re: Comments
Subject: Re: Comments
Date: Wed, 16 Jan 2002 16:03:10 -0500
From: Rick Shiver <[e-mail]>
To: Christie Jackson <[e-mail]>
I know Jim said his were ok. Send me Clairmont and we'll ask Steve to look at it real quick tomorrow.
Thanks, Rick
Christie Jackson wrote:
Oh, I should have been more specific. I DO have the staff reports - I'm just missing the draft comments.
Just a quick "OK" by e-mail will do. Sorry for the confusion.
Rick Shiver wrote:
Hi, Christie,
Jim Bushardt did the review for the Cape and Dolphin and I know it was sent up to
you all after I signed off on it. Jim also reviewed the draft permits.
Steve did the review for Clairmont and I know it was sent up to you all after I
signed off on it. Steve doesn't remember if he reviewed the draft permit you all
sent us for review.
Tell me what you're missing and I'll get it to you. Thanks, Rick
Christie Jackson wrote:
> I don't have anything from you yet. If you're sure everything is ok, I'll go
> ahead and proceed with issuance.
> Rick Shiver wrote:
> > Hi, Christie,
> > I think the reviews were done some time ago. I needed a little more time
> > to look at the treatment train that you all intended to put in the permits
> > and I think that has already been done. I think you're good to go on those
> > permits. Let me know if you can't find all the paper from us. Thanks,
> > Rick
> > Christie Jackson wrote:
> > > Hey Rick,
> > > I got an e-mail stating that you guys need extra time to review
> > > NCO058599 (Clairmont), NCO059978 (Dolphin Bay) and NCO057703 (The
> > > Cape). I'm trying to finalize these permits and I just wanted to touch
> > > base with you because I haven't received the comments yet. Could you
> > > please check this out and let me know as soon as you can? I was hoping
> > > to get them done today.
> > > Thanks
1 of 2 1/16/02 4:08 PM

[Fwd: Late reviews]
Subject: [Fwd: Late reviews]
Date: Wed, 28 Nov 2001 10:20:25 -0500
From: Charles Weaver <[e-mail]>
To: Christie Jackson <[e-mail]>
FYI - there's no harm in giving them until the end of December....
Subject: Late reviews
Date: Wed, 28 Nov 2001 10:08:13 -0500
From: Rick Shiver <[e-mail]>
To: [e-mail]
Charles,
I just found three requests for reviews in my in box that have a due
date of 30 November. It looks like I put them in my in box and then
forgot about them. It's my fault and I have since distributed them for
review but it's not fair to ask the staff to suffer for my mistake:. I
need a three-four week time extension for Clairmont (N00058599),
Dolphin Bay (NC0059978), and The Cape (N00057703). Thanks for your
consideration. I'll make sure that this doesn't happen again. Rick
Rick Shiver <Rick.Shiverna,ncmail.ner>
CoMnAk M4
t /16 rEJ
1 of 1 11/28/01 11:31 AM

AFFIDAVIT OF PUBLICATION
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
_.7.gieuc nano
Before the undersigned a Notary Public of Said Counsv and State.
co•nrssownnJEs u
iMYI) wu SerYat cone.
DIANE P. KEENAN
nonir c'mo� oi'�w 1
��
Who, being duly sworn or affrmed, according to Ne law, says that ha5he is
CLASSIFIED ADVERTISING MANAGER
win. Rs�t ii,. si-
A
of THE WILMINGTON STAR -NEWS. INC., a corponnon organized and doing business under
Emmet w�rrn
the Laws of the State of Nosh Carolina. and publishing a newspaper known at WUbIINGTON
cen.r.smnW
MORNING STAR .4 SUNDAY STAR -NEWS in the City of Wilmington
.n 01fcni1pe
EYmwragr '� wpm
PLBUC NOTICE STATE OF NORTH CAROLINA l:VV7RONMENTAL.NANAG£.HENT
CO.N.NISSIONMPDES UN?l6U,Hail Ser+ice CeJvrr Raleigh, .VC 276919-1617
-
NOTIFICATION OF INTENT TO ISSUE A NPDES WASTEWATER PER.NIT On the basis
=..its m > eYs ne
of th—sigh,toff.Her and opplicamn of .VC G
onotw
a�..assrv.er° e"`mu m
m>.ao.e N iM new
was isuened in the aforesaid newspaper in space. and on dues as follows:
vw garny�r
eer"et a`ii0
And at the ume of such publwauon Wihningion Sru-News was a newspaper meeting all the
o-.n
requirements and qualifications Prescnbnd by Sin. No- (-597 G.S. of N.C.
—ail M Demur
w wain
�:
we
o� d
Tide: CLASSIFIED ADVER. IIGR
Sworn or affirmed W. and subscribed before —,his 7TA day of
NOVEMBER A.D., 7nni
��> sm`ens r°0"•.
OmvM I%xla M (9191
1. T.,.—.y Whereof, l have here..,. ser my hand and affiaed my official seal, the day and
r)�M-SWJ. tnnnoi SJa
,rtt� ew nV9E5
p nwrCer lamtleal
YCY af.rCald.
I
v.ww riu
aa,
,// rr Notary Public
s:irow srn.t. aaew�.
nc :Jco•-u•s eer.een
w imu e�ao��.�
Mycomrmssion erpues 27THday of JULT,2004
nrroEs Gemet nwrme.
.coons» 1.
Hess Coroor.Ytn i �+ fore
affidavit with ,he advcnisem<m ,herero annexed it is ad ud ed by the Court that the said
going a J 6
Pubt "rymrwi Mt i V;11,
made. and that the summons has been duly and legally served on the defendant(s).
Thin
c= F uve. u—
cwrt.ew
C.w4 Ymnn •n �irt�irerp mev+nect
'Clerk of Superior Coup
MR.ES Mint Nimxr
�0�11.J. f�rwerY
• nw fit Got 6
PeN.Nt G6 51i) Can,
ant Reet. Wa-
atetli
^e^Ott^. NC 1pMrl�lt ew
aaetne� a IwHv b
fix F� Rlver�^'[M
�+4 F giver 9aun.
�urtrnlY a00 a amnYs
nnpE$ FmJE �Murroer
�an551a). � Geinevf
Mxe5l1) CueYnaBean
am.i mr�. raa�ir
air�ir N ur. G_M
ru-
� aYs
IwOEsternat
n(DW9S1 ),
i� ti . swnwt
annnut U
_mew
anrd��
Wei retF. u n°�°u."
CtY Fr gner 9ayn
•'«T�mn °�`�Mm'ie
N.! n-

SOC PRIORITY PROJECT: No
To: Permits and Engineering Unit
Water Quality Section
Attention: Charles Weaver
Date: May 1, 2001
NPDES STAFF REPORT AND RECOMMENDATION
County: New Hanover
Permit No. NCO057703
PART 1 - GENERAL INFORMATION
2
3
0
Facility and Address: Fairways Utilities, Inc.
The Cape WWTP
6960 Professional Parkway East, Suite 400
Sarasota, FL, 34240
Date of Investigation: April 27, 2001
Report Prepared by: Jim Bushardt
Persons Contacted and Telephone Number:
Ethel Bedgood [phone]
r
M AY - 4 2001
t
DENR - WATER QUALITY
POINT SOUR E BRAN H
5. Directions to Site: The site is located in the Cape Golf and Racquet Club
subdivision (HWY 421 one mile north of Snows Cut Bridge near Carolina
Beach). Travel into the subdivision and turn right on a dirt access road
approximately 1 /4 mile from the subdivision entrance.
C:j
7.
n
Discharge Point(s), List for all discharge points:
Latitude: 34 Deg 4 min 26 Sec Longitude: 77 Deg 55 Min 26 Sec
U.S.G.S. Quad No: U-52 U.S.G.S. Quad Name: Carolina Beach NC
Site size and expansion area consistent with application ?
No request for expansion has been presented within this renewal application.
Topography : The treatment plant is located at approximately 10 + feet MSL
and the terrain is flat. The plant is protected from 100 year floods.
9. Location of nearest dwelling: Approximately 500 ft south of plant

10. Receiving stream or affected surface waters: Cape Fear River
a. Classification: SC waters
b. River Basin and Subbasin No.: 03 06 17
C. Describe receiving stream features and pertinent downstream uses:
Large volume, tidal stream usable for secondary recreation, commercial
fishing and merchant marine operations.
PART II - DESCRIPTION OF DISCHARGE AND TREATMENT WORKS
1. Pertinent Information
a. Volume of wastewater to be permitted: 0.260 MGD
b. What is the current permitted flow limit? 0.260 MGD
C. Actual treatment capacity of the current facility? Unknown
d. Date(s) and construction activities allowed by previous Authorizations to
Construct issued in the previous two years: None
e. Please provide a description of existing or substantially constructed
wastewater treatment facilities: influent pump station, flow splitter, bar
screens, quad train extended aeration package plants with diffused air
biological basins, clarifiers, (2x0.1 mgd, 2X.03 mgd) chlorine feed and
contact tank, effluent pump station, effluent pumping station, aerated
sludge holding tank, continuous recording flow meter
f. Please provide a description of proposed wastewater treatment facilities:
A permit flow rate to 0.350 MGD (from current 0.260 MGD) is provided.
There is no future treatment conceptualization presented in support of
hydraulic expansion.
g. Possible toxic impacts to surface waters: None
h. Pretreatment Program: Not a POTW
2. Residuals handling and utilization/disposal scheme:
a. If residuals are being land applied, please specify DWQ Permit No.:
W00000455
Residuals Contractor: Lewis Farms Telephone No.: [phone]
b. Residuals stabilization: Class B pathogen reduction and vector attraction
reduction using lime

C. Landfill: No
d. Other disposal/utilization scheme (Specify): None
3. Treatment plant classification: Class II
4. SIC Code(s): 4952
Wastewater Code(s): 05
Main Treatment Unit Code: 060X3
PART III - OTHER PERTINENT INFORMATION
1. Is this facility being constructed with Construction Grant Funds or are any
public monies (municipals only) involved? No
2. Special monitoring or limitations (including toxicity) requests: None
3. Important SOC, JOC or Compliance Schedule dates: None
4. Alternative Analysis Evaluation: Has the facility evaluated all of the non -
discharge options available? No
Please provide regional perspective for each option evaluated.
Spray Irrigation: Treatment plant is located in an area having high land prices.
This option would be very expensive
Connection to Regional Sewer System: Possible in the future
Subsurface: Too expensive
Other disposal options: Golf course reuse with plant upgrade -also costly.
5. Other Special Items: None
PART IV - EVALUATION AND RECOMMENDATIONS
This report is being prepared based upon a permit renewal request. There
have been no substantial changes in the design of this system or receiving stream
classification since the last permit cycle. The writer does not have a current waste load
allocation to support this renewal activity, and assumes that the facility is not water
quality limited. The current monitoring is similar to 2B.0500 for this SIC (effluent
limited) except total residual chlorine is required and influent BOD and TSS are not
required. The current effluent limits match the expected treatment performance of a
secondary treatment plant and the limits for pH and bacteria match the requirements
NO F1 -Ntutj I — No 1"%, motj('%2Fn�5
r 02l0 - iOr uMf ��+)
Vet? 0*4

of 213.0200 for Class SC waters. The writer would recommend DO monitoring similar
to Permit NC0055107 for consistency since both permits are held by the same
permittee. There has been no A to C submittal within the last permit cycle. The writer
would recommend the basinwide effluent strategy (5/2 limits) for Subbasin 17 be
applied to the 0.350 MGD monitoring/limits sheet, if the Division intends to continue
the allowance of flow banking under this permit.
It is requested that NPDES Permit NC0057703 be modified per the writer's
request and as needed to provide the most current boilerplate permitting language and
reissued to the applicant for a standard term in accordance with the Cape Fear River
Basinwide Permitting Strategy.
Q - A /,,, -111e
ature of Report Preparer ate
Water Quality Regional Supervisor Date
JB:Cape.501
cc: Wilmington Regional Office
Technical Support Branch
Central Files

Horizon Engineering & Consulting, Inc.
107 Commercial Park Drive
Concord, N.C. 7
Y 704-788-949-9497
Fax:[phone]
April 5, 2001
NC DENR / DWQ
NPDES Unit
1617 Mail Service Center
Raleigh, N.C. 27699-1617
APR 10 200i
DENR WgTER QUALITY
POINT SOURCE BRANCH
Subject: Application for Permit Renewal
Fairways Utilities, Inc. (Dolphin Bay) — NCO055107
Fairways Utilities, Inc. (The Cape Golf and Racquet Club) — NCO057703
Fairways Utilities, Inc. (Ocean Forest Lakes Subdivision) — NCO059978
New Hanover County
Gentlemen:
Attached are applications for renewal of the subject permits. These permits expire on December
31, 2001.
We have also attached copies of the N.C. Utilities Commission Order Approving Transfer and
Requiring Public Notice, which document that AquaSource Utility, Inc. has acquired and owns
Fairways Utilities, Inc.
The application forms have been signed and are submitted herewith as Fairways Utilities, Inc.
request to renew these permits.
I trust that this information is sufficient but, if you have any questions, concerns, etc. or if I may
be of any assistance, please do not hesitate to call (704-788-9497.)
Glenn LaBrecque
Carolyn McFalls
Gary Sherwood
Ethel Bedgood

Fairways Utilities, Inc.
The Cape Subdivision
Sludge Management Plan
Excess waste sludge does not build very frequently in this facility. Sludge is
wasted infrequently by using a licensed septage hauler to pump out the excess
inventory into a tanker truck and transport it to a state permitted land application
site (Lewis Farms & Liquid Waste Removers — Permit No. WQ0000455.)
March 29, 2001
Date

STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
DOCKET NO. W-787, SUB 14
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
In the Matter of
Joint Application by Fairways Utilities, Inc., and ) ORDER APPROVING
AquaSource Utility, Inc., to Transfer the Stock of ) TRANSFER AND
Fairways Utilities, Inc. to AquaSource Utility, Inc., ) REQUIRING CUSTOMER
and for Approval of Rates ) NOTICE
6Y THE Fairways Utilities, Inc. (Fainaays), and AquaScurce Utility,
Inc. (AquaSource), filed a joint application with the Commission on February 16, 1999,
seeking authority to transfer the stock of Fairways to AquaSource. The Fairways systems
serve a total of 1,052 water and 868 sewer customers with mains in place to serve an
additional 140 water and sewer connections.
On October 29, 1999, the Public Staff and AquaSource filed a Joint Stipulation
setting forth the terms agreed to by both parties, which are as follows:
(1) AquaSource agrees to exclude the acquisition adjustment created by the
transfer of Fairways' stock to AquaSource in any proceeding involving an
increase in rates, including but not limited to the determination. of any
increase in rates in any future rate case proceeding.
(2) The. service rates will decrease 11 % effective thirty (30) days after the
transfer of the stock to AquaSource. The rates produced by this decrease
are as follows:
Monthly Water Utility Service:
Base charge, zero usage $ 5.47
Usage charge, per 1,000 gallons $ 1.19
Monthly Sewer Utility Service:
Residential flat rate $ 20.03
Commercial rate
Base charge (0-5,000 gallons) $ 22.25, minimum
Usage charge per 1,000 gallons
(in excess of 5,000 gallons) $ 5.34

I,y r_Iµ, dVCC1 _ 'I ._C -L1C _7U 714 "vyr!.• rLD'�.L_. rr1VG UJ
(3) The tap on fees will remain at the current authorized levels, which are as
follows:
Inlet Watch Subdivision:
Irrigation meters $ 300
All other service areas:
Water $ 750
Sewer $ 1,000
(4) The financial statements at the date of transfer will be adjusted for
amortization of contributions in aid of construction (CIAC) and removal of tax
gross -up includedin the CIAC account to comply with the Uniform System
of Accounts prescribed by the North Carolina Utilities Commission. As of
December 31, 1998, this adjustment %:ould reduce CIAC by $441,214. The
offsetting credit will be to Shareholder Equity - Retained Earnings.
(5) AquaSource will amortize CIAC at the amortization rates used in Fairways*
last rate case proceeding, Docket No. W 787, Sub 11.
(5) AquaSource will depreciate plant in service items at the rates used in
Fairways' last rate case proceeding, Docket No. W 787, Sub 11.
On November 8, . 1999, the Commission issued an Order requiring customer notice
indicating that the matter may be determined without hearing if no significant protests are
received. As of December 10, 1999, no protests were received.
On the basis of the verified application, the stipulation, and the records of the
Commission, the Commission makes the following
FINDINGS OF -FACT
1. AquaSource presently holds one other water utility franchise in North
Carolina serving approximately-106 customers. AquaSource's record of service in this
area is satisfactory. AquaSource has also just recently acquired the former Rayco Utilities
thirteen service areas with 722 water and 643 sewer customers. The Public Staff has not
evaluated the operations as of this date.
2. Fairways has approximately 1,052 water customers and 868 sewer
customers with mains in place to serve an additional 140 water and sewer connections.
3. Fairways currently has $260,000 of bonds posted with the Commission.
Section 2.8 of the stock purchase agreement states that to the extent that these bonds and
letters of credit are assigned to AquaSource, AquaSource shall pay to each shareholder
2

M
his proportionate share of the total amount of the certified funds and the portion of the
annual letter of credit fee due from the closing date through to its next renewal date. Also,
AquaSource shall substitute its credit for any credit or guarantee of the shareholders with
regard to any bonds or letters of credit and shall obtain the release of the shareholders'
liability with regard to the bonds and letters of credit.
4. AquaSource has the financial, managerial, and technical capacity to operate
Fairways' water and sewer systems.
5, The transfer of Fairways' stock to AquaSource is justified by the public
convenience and necessity.
6. . The parties also agree that amortization rates for CIAC should be 2.92% for
water operations and 3.38% for --sewer operations.
CONCLUSIONS
Based upon the foregoing, the Commission is of the opinion that the transfer of
Fairways' stock to AquaSource is in the public interest and should be granted, and that the
stipulation of the Public Staff and AquaSource should be approved. Also, the Commission
concludes that the current,bond level of $260,000 should be maintained and AquaSource
shall file the appropriate assignments, releases, or new bonds for this amount for approval
by this Commission within 30 days after the date of closing.
IT IS, THEREFORE, ORDERED as follows:
1. That the transfer of the stock of Fairways Utilities, inc., to AquaSource Utility,
Inc., is approved.
2. That the Applicant shall give written notification to the Commission within 14
days after the transfer has taken place,
3. That the Joint Stipulation of the Public Staff and AquaSource Utility, Inc.,
signed and filed with the. Commission on October 29, 1999, is hereby approved.
4. That neither the stipulation among the parties to this proceeding nor this
Order shall be treated or cited as precedent or have any precedential value for
AquaSource or any other water or sewer utility in North Carolina.
5. That the Notice to Customers, attached as Appendix A, shall be mailed with
sufficient postage to all customers of Fairways within 15 days of the date of this Order, and
that AquaSource shall submit to- the Commission the attached Certificate of Service
properly signed and notarized not later than 30 days after completing the notification.
3

CJ'+; 4UUU L4.LQ D1CiM&M F'LL'G.UU. PAGE 0�
6. That the Schedule of Rates, attached as Appendix B, is approved and
deemed to be filed with the Commission pursuant to G.S. 62-138. Said Schedule of Rates
is hereby authorized to become effective for service rendered on and after the date of this
Order. The parties are to notify the Commission of the transfer of the stock at which time
an Order will be issued reducing the rates within 30 days of the transfer date.
7. That AquaSource shall maintain the current bond level of $260,000 and shall
file the appropriate assignments, releases, or new bonds for this amount for approval by
the Commission within 30 days after the date of closing.
ISSUED BY ORDER OF THE COMMISSION.
This the _92� y of , 1999.
NCRTH CAROLINA UTILITIES COMMISSION
FIM 'moWill
fb,=00.02 Geneva S. Thigpen, Chief Clerk
4

0j. U41 GUUU 14. GG
71 U i 'j'J b'71 G
M&M r'LbU. UU.
PAGE 06
STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
APPENDIX A
NOTICE TO CUSTOMERS
DOCKET NO. W-787, SUB 14
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
Notice is given that the North Carolina Utilities Commission has approved a transfer
of the stock of Fairways Utilities, Inc. (Fairways), to AquaSource Utility, Inc. (AquaSource).
The rates will remain the sam"or now, however, an Order will be issued following the
completion of the transfer of the stock reducing the rates for Fairways to the following
rates, resulting in an overall decrease in rates of i 1 W
Monthly Water Utility Service:
Base Charge, zero usage $ 5.47, minimum
Usage Charge, per 1,000 gallons $ 1.19
Monthly Sewer Utility Service:
Residential Flat Rate $20.03
Commercial Rate
Base Charge (0-5,000 gallons) $22.25, minimum
Usage Charge, per 1,000 gallons $ 5.34
(in excess of 5,000 gallons)
There is no immediate change in the mailing address or telephone numbers of the
utility company. The customers will be notified separately by AquaSource of any future•
changes in telephone numbers or mailing addresses.
ISSUED BY ORDER OFTHE COMMISSION.
This the day of , 1999.
NORTH CAROLINA UTILITIES COMMISSION
VAW W
If I I- Q
Geneva S. Thigpen, Chief Clerk

u« 114 t _� 77t7.1t M&M ['LBU.%C:.
PAGE E 7
SCHEDULE OF RATES
for
FAIRWAYS UTILITIES. INC,
for providing water and sewer utility service in
ALL ITS SERVICE AREAS IN NORTH CARO INA
Monthly Water Utility Service:
Base Charge, zero usage
Usage Charge, per 1,000 gallons
Monthly Sewer Utility Service:
Residential flat rate
Commercial rate
Base charge (0----5,000 gallons)
Usage charge, per 1,000 gallons
(in excess of 5,000 gallons)
Connection Charges
Inlet Watch_Subdivision
Irrigation meters: _ S 300.00
All other service areas
Water: $ 750.00
Sewer: $1,000.00
Reconnection Charges
APPENDIX B
PAGE 1 OF 2
$ 6.15, minimum
$1.34
$22.50
$25.00, minimum
$ 6.00
4
If water service cut off by utility for good cause: $15.00
If water service discontinued at customer's request: $10.00
If sewer service cut off by utility for good cause where
sewer service cannot be cut off by discontinuing water service: $30.00

APPENDIX B
PAGE 2 OF 2
Returned Check Charge: $10.00
BillsDue: On billing date
Bills Past Due: 15 days after billing date
Billing Frequency: Shall be monthly for service in arrears
Finance Charges for Late Payment: 1 % per month will be applied to the unpaid
balance of all bills still past due 25 days after
billing date.
Issued in Accordance with Authority Granted byyAe Nort Carolina Utilities Commission
in Docket No. W-787, Sub 14, on this the �- day of , 1999.

State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
September 22, 2000
Mr. Stephen Miller
Fairways Utilities
5717 Carolina Beach Road
Wilmington, NC 28412
4 • •
NCDENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
Subject: NPDES Permit Modification
Permit NCO057703
The Cape WWTP
New Hanover County
Dear Mr. Miller:
The Division is beginning the cycle of permit renewals for the Cape Fear river basin. An examination of the Cape
Fear basin plan and the NPDES permit schedule has revealed that the existing expiration dates in Cape Fear NPDES
permits do not coincide with the revised permit expiration dates for the basin. This discrepancy could create unnecessary
delays in the processing of over 200 permit renewals. Accordingly, the Division is changing the permit expiration dates for
NPDES permits in the Cape Fear river basin.
This permit modification changes the expiration date of the subject permit in subbasin 30617 to December 31, 2001.
Please find enclosed the revised permit cover page. Insert the new cover page into your permit and discard the old page.
All other terms and conditions contained in the original permit remain unchanged and in full effect. This permit
modification is issued under the requirements of North Carolina General Statutes 143-215.1 and the Memorandum of
Agreement between North Carolina and the U. S. Environmental Protection Agency.
In accordance with the modification of the permit expiration date, the new due date for your renewal application is
July 4, 2001. Renewal application forms will be sent to you approximately 6-8 weeks in advance of the new due date or
you may download the forms from the NPDES web site at http://h2o.enr.state.nc.us/NPDES/documents.html. You
will need to download Short Form D. If you have already submitted a permit renewal form, there is no need to submit
any other forms to the Division; the application will be processed during the renewal period for your subbasin.
If any part of this permit modification are unacceptable to you, you have the right to an adjudicatory hearing upon
written request within thirty (30) days following receipt of this letter. This request must be a written petition conforming
to Chapter 150B of the North Carolina General Statutes, filed with the Office of Administrative Hearings (6714 Mail
Service Center, Raleigh, North Carolina 27699-6714). Unless such demand is made, this decision shall be final and binding.
If you have any questions concerning this permit modification, please contact Natalie Sierra at [phone],
extension 551.
Sincerely,
��
Kerr T. Stevens
cc: Central Files
Wilmington Regional Office, Water Quality Section
Point Source Compliance Enforcement Unit
1617 Mail Service Center, Raleigh, North Carolina 27699-1617 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer VISIT US ON THE INTERNET @ http://h2o.enr.state.nc.us/NPDES

Permit NCO057703
a
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
PERMIT
TO DISCHARGE WASTEWATER UNDER THE
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
In compliance with the provision of North Carolina General Statute 143-215.1, other lawful
standards and regulations promulgated and adopted by the North Carolina Environmental
Management Commission, and the Federal Water Pollution Control Act, as amended,
Fairways Utilities, Inc.
is hereby authorized to discharge wastewater from a facility located at the
The Cape WWTP
900 Cape Boulevard
Wilmington
New Hanover County
to receiving waters designated as the Cape Fear River in the Cape Fear River Basin
in accordance with effluent limitations, monitoring requirements, and other
conditions set forth in Parts I, II, III and IV hereof.
This permit shall become effective October 1, 2000..
This permit and authorization to discharge shall expire at midnight on December 31, 2001.
Signed this day September 22, 2000.
14�� Id -
Kerr T. Stevens, director
Division of Water Quality
By Authority of the Environmental Management Commission