WQCS00030_Civil Penalty Assessment_20241017

M STATE q
ROY COOPER _
Governor 2C
MARY PENNY KELLEY >�r
Secretary
RICHARD E.ROGERS,JR. NORTH CAROLINA
Director Environmental Quality
October 17, 2024
CERTIFIED MAIL#7022 0410 0000 7789 7262
RETURN RECEIPT REQUESTED
Ron Smith, City Manager
City of Statesville
P.O. Box 1111
Statesville, NC 28687
Subject: ASSESSMENT of CIVIL PENALTIES
for Violations of North Carolina General Statute (N.C.G.S.) 143-215.1.(a)(8)
Case number: PC-2024-0026
Wastewater Collection System Permit WQCS00030
Hidden Lakes Single Family Subdivision (Phases 6, 7, and 8)
Iredell County
Dear Mr. Smith:
This letter transmits a notice of a civil penalty assessed against The City of Statesville in the
amount of$9,814.10 ($9,500 civil penalty+ $314.10 in enforcement costs).
This assessment is based upon the following facts:
• On August 21, 2024,the North Carolina Division of Water Resources (DWR),Water Quality
Regional Operations Section (WQROS) was notified by the City of Statesville Public
Utilities that the Hidden Lakes Development did not have the required permit for the
installation and operation of a sewer system as part of phases 6, 7, and 8.
• On August 22, 2024, DWR-WQROS staff conducted a site inspection of the sewer system
at Hidden Lakes Development in Iredell County.The inspection and subsequent file review
confirmed that True Homes, LLC had constructed, installed, and put into operation a
sewer system without the required permit. Therefore, it was determined that the City of
Statesville Public Utilities had been receiving unauthorized wastewater flows from the
newly constructed sewer system located within Hidden Lakes Development (phases 6, 7,
and 8).
• Accepting wastewater flows from an unpermitted system constitutes a violation of the
City of Statesville's Collection System Permit No. WQCS00030, as well as the North
D E Q�� North Carolina Department of Environmental Quality I Division of Water Resources
Mooresville Regional Office 1 610 East Center Avenue,Suite 301 1 Mooresville,North Carolina 28115
NORTH CAROL INA -
ue _.,0
E, i-1 ou., 704.663.1699

Carolina Administrative Code (N.C.A.C.) 02T, and N.C.G.S. 143-215.1.(a)(8).
• On September 6, 2024,the Mooresville Regional Office (MRO) of the DWR issued a Notice
of Violation/Notice of Intent to Enforce (NOV-2024-PC-0504)to City of Statesville.
• The DWR-WQROS staff reviewed City of Statesville's written response to NOV-2024-PC-
0504, received on October 9, 2024, and has decided to move forward with enforcement.
Based upon the aforementioned facts, I conclude as a matter of law that the City of Statesville
has violated the City of Statesville's Collection System Permit No. WQCS00030 (Permit Condition
1.3.), as well as N.C.A.C. 02T, and N.C.G.S. 143-215.1(a)(8) by accepting wastewater flows from an
unpermitted sewer system. In accordance with the maximums established by N.C.G.S. 143-
215.6A(a), a civil penalty may be assessed against any person who violates the terms, conditions
or requirements of a permit required by N.C.G.S. 143-215.1(a).
Based upon the above findings of fact and conclusions of law, and in accordance with authority
provided by the Secretary of the Department of Environmental Quality and the Director of the
Division of Water Resources, I hereby make the following civil penalty assessment against the
City of Statesville:
$ 9,500.00 For violating Permit Condition 1.3, N.C.A.C. 02T, and N.C.G.S. 143-
215.1(a)(8) by accepting wastewater flows from an unpermitted sewer
system.
$ 314.10 Enforcement Costs
$ 9,814.10 TOTAL AMOUNT DUE
Pursuant to N.C.G.S. 143-215.6A(c), in determining the amount of the penalty I have taken into
account the Findings of Fact and Conclusions of Law and the factors set forth at N.C.G.S. 14313-
282.1(b), which are:
(1) The degree and extent of harm to the natural resources of the State, to the public health,
or to private property resulting from the violation;
(2) The duration and gravity of the violation;
(3) The effect on ground or surface water quantity or quality or on air quality;
(4) The cost of rectifying the damage;
(5) The amount of money saved by noncompliance;
(6) Whether the violation was committed willfully or intentionally;
(7) The prior record of the violator in complying or failing to comply with programs over which
the Environmental Management Commission has regulatory authority;
(8) The cost to the State of the enforcement procedures.
Within thirty days (30) of receipt of this notice, you must do one of the following:
1. Submit payment of the penalty:
North Carolina Department of Environmental Quality I Division of Water Resources
Mooresville Regional Office 1 601 East Center Avenue,Suite 301 1 Mooresville,NC 28115
NOarHcnaouNnD� A 704.663.1699
oeparrmem or enviro memai aaar�

Payment should be made directly to the order of the Department of Environmental Quality (do
not include waiver form). Payment of the penalty will not foreclose further enforcement action
for any continuing or new violation(s). Please submit payment to the attention of:
Wren Thedford
NC DEQ/DWR/Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
OR
2. Submit a written request for remission or mitigation including a detailed justification for
such request:
Please be aware that a request for remission is limited to consideration of the five factors listed
below as they may relate to the reasonableness of the amount of the civil penalty assessed.
Requesting remission is not the proper procedure for contesting whether the violation(s)
occurred or the accuracy of any of the factual statements contained in the civil penalty
assessment document. Because a remission request forecloses the option of an administrative
hearing, such a request must be accompanied by a waiver of your right to an administrative
hearing and a stipulation and agreement that no factual or legal issues are in dispute. Please
prepare a detailed statement that establishes why you believe the civil penalty should be
remitted and submit it to the Division of Water Resources at the address listed below. In
determining whether a remission request will be approved, the following factors shall be
considered:
(1) whether one or more of the civil penalty assessment factors in N.C.G.S. 143B-282.1.(b)was
wrongfully applied to the detriment of the petitioner;
(2) whether the violator promptly abated continuing environmental damage resulting from
the violation;
(3) whether the violation was inadvertent or a result of an accident;
(4) whether the violator had been assessed civil penalties for any previous violations; or
(5) whether payment of the civil penalty will prevent payment for the remaining necessary
remedial actions.
Please note that all evidence presented in support of your request for remission must be
submitted in writing. The Director of the Division of the Division of Water Resources will review
your evidence and inform you of his decision in the matter of your remission request. The
response will provide details regarding the case status, directions for payment, and provision for
further appeal of the penalty to the Environmental Management Commission's Committee on
Civil Penalty Remissions (Committee). Please be advised that the Committee cannot consider
information that was not part of the original remission request considered by the Director.
Therefore, it is very important that you prepare a complete and thorough statement in support
of your request for remission.
North Carolina Department of Environmental Quality I Division of Water Resources
Mooresville Regional Office 1 601 East Center Avenue,Suite 301 1 Mooresville,NC 28115
NOarHcnaouNnD� / 704.663.1699
oeparrmem or enviro memai aaar�

In order to request remission, you must complete and submit the enclosed "Request for
Remission of Civil Penalties,Waiver of Right to an Administrative Hearing, and Stipulation of Facts"
form within thirty (30) days of receipt of this notice. The Division of Water Resources also
requests that you complete and submit the enclosed "Justification for Remission Request." Both
forms should be submitted to the following address:
Wren Thedford
NC DEQ/DWR/Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
OR
3. File a petition for an administrative hearing with the Office of Administrative Hearings:
If you wish to contest any statement in the attached assessment document, you must file a
petition for an administrative hearing. You may obtain the petition form from the Office of
Administrative Hearings. You must file the petition with the Office of Administrative Hearings
within thirty (30) days of receipt of this notice. A petition is considered filed when it is received
in the Office of Administrative Hearings during normal office hours. The Office of Administrative
Hearings accepts filings Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m.,
except for official state holidays. The original and one (1) copy of the petition must be filed with
the Office of Administrative Hearings. The petition may be faxed provided the original and one
copy of the document is received in the Office of Administrative Hearings within five (5) business
days following the faxed transmission. The mailing address for the Office of Administrative
Hearings is:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, North Carolina 27699-6714
Telephone [phone] Facsimile: [phone]
AND
Mail or hand-deliver a copy of the petition to:
General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, North Carolina 27699-1601
Please indicate the case number (as found on page one of this letter) on the petition.
Failure to exercise one of the options above within thirty (30) days of receipt of this letter, as
evidenced by an internal date/time received stamp (not a postmark), will result in this matter
being referred to the Attorney General's Office for collection of the penalty through a civil action.
Please be advised that additional penalties may be assessed for violations that occur after the
review period of this assessment.
North Carolina Department of Environmental Quality I Division of Water Resources
Mooresville Regional Office 1 601 East Center Avenue,Suite 301 1 Mooresville,NC 28115
NOarHcnaouNnD� A 704.663.1699
oeparrmem or enviro memai aaar�

If you need additional information concerning this matter, please contact Karla Fueyo at (704)
235-2196 or via e-mail at [e-mail], or me at [phone]
[e-mail].
Sincerely,
EDocuSigned by:
A H P444-".
F161 FB69A2D84A3...
Andrew H. Pitner P.G., Regional Supervisor
Water Quality Regional Operations Section
Division of Water Resources, NCDEQ
CC: William Vaughn, Public Works Director, City of Statesville (via
[e-mail])
Mark Boyce, Manager, True Homes, LLC (via [e-mail] )
David Klausman, PE, V3 Southeast (via [e-mail])
Mark Momsen, PE, V3 Southeast (via [e-mail])
Water Resources Central Files (Laserfiche)
North Carolina Department of Environmental Quality I Division of Water Resources
Mooresville Regional Office 1 601 East Center Avenue,Suite 301 1 Mooresville,NC 28115
NORTH CAROLINAD� l 704.663.1699
Depa"mem of Environmental Duality

STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL
QUALITY
COUNTY OF IREDELL
IN THE MATTER OF ASSESSMENT ) WAIVER OF RIGHT TO AN
OF CIVIL PENALTIES AGAINST ) ADMINSTRATIVE HEARING AND
THE CITY OF STATESVILLE ) STIPULATION OF FACTS
HIDDEN LAKES SINGLE FAMILY )
SUBDIVISION (PHASES 6, 7, AND 8) )
FILE NO. PC-2024-0026
Having been assessed civil penalties totaling $9,814.10 for violation(s) as set forth in
the assessment document of the Division of Water Resources dated October 17, 2024, the
undersigned, desiring to seek remission of the civil penalty, does hereby waive the right to an
administrative hearing in the above-stated matter and does stipulate that the facts are as alleged
in the assessment document. The undersigned further understands that all evidence presented
in support of remission of this civil penalty must be submitted to the Director of the Division
of Water Resources within thirty (30) days of receipt of the notice of assessment. No new
evidence in support of a remission request will be allowed after (30) days from the receipt of
the notice of assessment.
This the day of , 20
PRINTED NAME
SIGNATURE
ADDRESS
TELEPHONE

JUSTIFICATION FOR REMISSION REQUEST
DWR Case Number: PC-2024-0026 County: Iredell
Assessed Entity: City of Statesville
Amount Assessed: $9,814.10
Please use this form when requesting remission of this civil penalty. You must also complete the "Request
For Remission, Waiver of Right to an Administrative Hearing, and Stipulation of Facts" form to request
remission of this civil penalty. You should attach any documents that you believe support your request and
are necessary for the Director to consider in evaluating your request for remission. Please be aware that a
request for remission is limited to consideration of the five factors listed below as they may relate to the
reasonableness of the amount of the civil penalty assessed. Requesting remission is not the proper
procedure for contesting whether the violation(s) occurred or the accuracy of any of the factual statements
contained in the civil penalty assessment document. Pursuant to N.C.G.S. § 143B-282.L(c), remission of
a civil penalty may be granted only when one or more of the following five factors apply. Please check
each factor that you believe applies to your case and provide a detailed explanation, including copies of
supporting documents, as to why the factor applies(attach additional pages as needed).
❑ (a) one or more of the civil penalty assessment factors in N.C.G.S. 143B-282.L(b)were wrongfully
applied to the detriment of the petitioner (the assessment factors are listed in the civil penalty assessment
document);
❑ (b) the violator promptly abated continuing environmental damage resulting from the violation(i.e.,
explain the steps that you took to correct the violation and prevent future occurrences);
❑ (c) the violation was inadvertent or a result of an accident (i.e., explain why the violation was
unavoidable or something you could not prevent or prepare for);
❑ (d) the violator had not been assessed civil penalties for any previous violations;
❑ (e) payment of the civil penalty will prevent payment for the remaining necessary remedial actions
(i.e., explain how payment of the civil penalty will prevent you from performing the activities necessary to
achieve compliance).
EXPLANATION:

DIVISION OF WATER RESOURCES - CIVIL PENALTY ASSESSMENT
Violator: City of Statesville
Project: Hidden Lakes Single Family Subdivision(Phases 6, 7, and 8)
County: Iredell
Case Number: PC-2024-0026
ASSESSMENT FACTORS
1) The degree and extent of harm to the natural resources of the State,to the public health, or
to private property resulting from the violation; Without the benefit of a complete permit
application, it is not possible to determine if the constructed infrastructure meets minimum design
requirements which are intended to be protective of natural resources of the State,public health
and private property.
2) The duration and gravity of the violation;Approximately 10,400 linearfeet of eight-inch gravity
sewer was constructed/installed and put into operation without having first applied for; and
received, a valid sewer extension permit. Additionally, approximately 89,280 gallons per day
(GPD) of collected domestic wastewater was accepted by the City of Statesville Public Utilities
without proper authorization.
3) The effect on ground or surface water quantity or quality or on air quality;Without the benefit
of a complete permit application, it is impossible to determine if the constructed infrastructure
meets minimum design requirements which are intended to be protective of surface and
groundwater quality.
4) The cost of rectifying the damage; Unknown
5) The amount of money saved by noncompliance; Unknown
6) Whether the violation was committed willfully or intentionally; The Division currently has no
evidence to support this act as being willful or intentional though the permit application was
submitted after construction.
7) The prior record of the violator in complying or failing to comply with programs over which
the Environmental Management Commission has regulatory authority;and A similar instance
of construction of a sewer extension without first obtaining a permit occurred in 2023 regarding
the Bell Farm (WQ0044260)project.
8) The cost to the State of the enforcement procedures.
Hourly rate Hours worked
MR Staff $39.78 4 159.12
Regional Supervisor $69.99 2 139.98
Administrative Staff Cost 15.00
Total Enforcement cost 314.10
DocuSigned by:
10/17/2024 EF1R1FR
H Nu"
R9A9fIRdA3
Date Andrew H. Pitner,P.G.,Regional Supervisor
Water Quality Regional Operations Section
Mooresville Regional Office
Division of Water Resources,NCDEQ

STATE OF NORTH CAROLINA NORTH CAROLINA DEPARTMENT OF
ENVIRONMENTAL QUALITY
COUNTY OF IREDELL
IN THE MATTER OF )
CASE NO. PC-2024-0026 )
CITY OF STATESVILLE )
HIDDEN LAKES SINGLE FAMILY )
SUBDIVISION (PHASES 6,7, AND 8) ) FINDINGS AND DECISION
AND ASSESSMENT OF
CIVIL PENALTIES
FOR VIOLATIONS OF: )
N.C.G.S. 143-215.1.(a)(8) )
Acting pursuant to North Carolina General Statute(N.C.G.S.) 143-215.6A.,I,Andrew H. Pitner, of the
Division of Water Resources (hereby known as DWR),make the following:
I. FINDING OF FACT
A. The City of Stateville is a person organized and existing under the laws of the State of
North Carolina.
B. On August 21,2024,the DWR Water Quality Regional Operations Section(WQROS)was
notified by the City of Statesville Public Utilities that the Hidden Lakes Development did
not have the required permit for the installation and operation of a sewer system as part of
phases 6, 7,and 8.
C. On August 22,2024,DWR-WQROS staff conducted a site inspection of the sewer system
at Hidden Lakes Development in Iredell County.The inspection and subsequent file review
confirmed that True Homes,LLC had constructed,installed,and put into operation a sewer
system without the required permit.Therefore,it was determined that the City of Statesville
Public Utilities had been receiving unauthorized wastewater flows from the newly
constructed sewer system located within Hidden Lakes Development(phases 6, 7, and 8).
D. Accepting wastewater flows from an unpermitted system constitutes a violation of the City
of Statesville's Collection System Permit No. WQCS00030, as well as the North Carolina
Administrative Code(N.C.A.C.) 02T, and N.C.G.S. 143-215.L(a)(8).
E. On September 6, 2024, the Mooresville Regional Office (MRO) of the DWR issued a
Notice of Violation/Notice of Intent to Enforce (NOV-2024-PC-0504) to City of
Statesville.
F. On October 9, 2024, MRO DWR received the City of Statesville's written response to
NOV-2024-PC-0504. The response outlines a plan of action for regulatory compliance
related to sewer projects. According to the response, the following changes will be
implemented to enhance compliance with state regulations for the construction of water
and sewage systems:
• Proof of water and sewer regulatory application submission to the state as part of
the City's TRC approval process.

• An online application process to connect new construction to existing City utilities.
• Centralized project tracking to facilitate back-checks for other processes, such as
the issuance of certificates of occupancy.
• A potential procedural change regarding the "Applicant," whether the City or
developer,to ensure better coordination with City staff and TRC approvals,placing
the responsibility for compliance on the developer.
G. Permit Condition I.3. specifies: "The Permittee shall establish by ordinance, inter-local
agreement or contract its legal authority to require new sewers be properly constructed; to
ensure proper inspection and testing of sewer mains and service laterals; to address flows
from satellite systems and to take enforcement action as required by Condition I(4)."
H. North Carolina General Statute 143-215.1.(a)(8) states:
(a) Activities for Which Permits Required. -Except as provided in subsection(a6) of
this section,no person shall do any of the following things or carry out any of the
following activities unless that person has received a permit from the Commission
and has complied with all conditions set forth in the permit:
(8) Enter into a contract for the construction and installation of any outlet,
sewer system,treatment works,pretreatment facility or disposal system or
for the alteration or extension of any such facility.
I. The cost to the State of the enforcement procedures in this matter totaled$314.10.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSION OF LAW
A. City of Statesville is a `person' within the meaning of N.C.G.S. 143-215.6A., pursuant to
N.C.G.S. 143-212(4).
B. On August 22, 2024, City of Statesville was found to have violated Permit Condition 1.3.,
N.C.A.C. 02T, and N.C.G.S. 143-215.1.(a)(8) by accepting wastewater flows from an
unpermitted sewer system.
C. City of Statesville may be assessed civil penalties in this matter pursuant to N.C.G.S. 143-
215.6A.(a)(2), which provides that a civil penalty of not more than twenty-five thousand
dollars($25,000)per violation per day may be assessed against a person who is required but
fails to apply for or to secure a permit required by N.C.G.S. 143-215.1., or who violates or
fails to act in accordance with the terms, conditions, or requirements of such permit or any
other permit or certification issued pursuant to authority conferred by this Part.
D. The State's enforcement cost in this matter may be assessed against City of Statesville
pursuant to N.C.G.S. 143-215.3.(a)(9)and N.C.G.S 14313-282.L(b)(8).
E. Andrew H. Pitner of the Division of Water Resources, pursuant to delegation provided by
the Secretary of the Department of Environmental Quality and the Director of the Division
of Water Resources,has the authority to assess civil penalties in this matter.
Based upon the above Findings of Fact and Conclusions of Law,I make the following:

III. DECISION
Accordingly,City of Statesville is hereby assessed a civil penalty o£
$ 9,500 for violation of Permit Condition 1.3. and N.C.G.S. 143-215.L(a)(8)by accepting
wastewater flows from an unpermitted sewer system.
$ 314.10 Enforcement Cost
$ 9,814.10 TOTAL AMOUNT DUE
As required by N.C.G.S. 143-215.6A.(c),in determining the amount of penalty,I considered the factors set
out in N.C.G.S. 14313-282.L(b),which are:
(1) The degree and extent of harm to the natural resources of the State,to the public health,or to private
property resulting from the violations;
(2) The duration and gravity of the violations;
(3) The effect on ground or surface water quantity or quality or on air quality;
(4) The cost of rectifying the damage;
(5) The amount of money saved by noncompliance;
(6) Whether the violations were committed willfully or intentionally;
(7) The prior record of the violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority; and
(8) The cost to the State of the enforcement procedures.
DocuSigned by:
10/17/2024 EA41-4" H Nuf4.
F161 FB69A2D84A3...
Date Andrew H. Pitner,PG,Regional Supervisor
Water Quality Regional Operations Section
Mooresville Regional Office
Division of Water Resources,NCDEQ