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HomeMy WebLinkAboutWQ0000185_Final Permit_20190430ROY COOPER Governor MICHAEL S. REGAN Secretary LINDA CULPEPPER Director NORTH CAROLINA Environmental Quality April 30, 2019 BEN STIKELEATHER—ASSISTANT COUNTY MANAGER OCEAN SANDS WATER AND SEWER DISTRICT 153 COURTHOUSE ROAD — SUITE 302 CURRITUCK, NORTH CAROLINA 27929-0039 Subject: Permit No. WQ0000185 Ocean Sands WWTP High -Rate Infiltration System Currituck County Dear Mr. Stikeleather: In accordance with your permit change of ownership request received January 31, 2019, and subsequent additional information received April 9, 2019, we are forwarding herewith Permit No. WQ0000185 dated April 30, 2019, to Ocean Sands Water and Sewer District for the operation of the subject wastewater treatment and high -rate infiltration facilities. This permit shall be effective from the date of issuance through June 30, 2024, shall void Permit No. WQ0000185 issued July 17, 2017, and shall be subject to the conditions and limitations therein. The Permittee shall submit a renewal application no later than January 2, 2024. 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 July 17, 2017: ➢ Old Condition I11.7. —This facility is not located in the 100-year floodplain. ➢ Old Condition VI.2. — This permit is not voidable. The following permit conditions are new since the last permit issuance dated July 17, 2017: ➢ Condition II.11. — The setbacks listed in this condition have been updated for accuracy. ➢ Condition IIL4. — Requires the Permittee to take measures to prevent effluent ponding in or runoff from the infiltration sites. ➢ Condition 111.11. — Requires a protective vegetative cover to be established and maintained on all berms, pipe runs, erosion control areas, surface water diversions, and earthen embankments. ➢ Condition I11.12. —Requires metering equipment to be tested and calibrated annually. North Carolina Department of Environmental Quality I Division of Water Resources Q Fm 512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617 NORTH CAROU o.p+roWdmrMiWM&ntWo a1�1 r 919.707.9000 Mr. Ben Stikeleather April 30, 2019 Page 2 of 2 ➢ Condition III.13. — Requires an automatically activated standby power source capable of powering all essential treatment units shall be on site and operational at all times ➢ Condition IV.9. — Requires date of infiltration equipment calibration and date and results of power interruption testing on alternate power supply to be recorded in the maintenance log. ➢ Condition VI.10. — States that this permit shall not be renewed if the Permittee or any affiliation has not paid the required annual fee. ➢ Attachment A — 3 x Year monitoring has changed to March, July, and November to match groundwater monitoring months. ➢ Attachment C — Groundwater monitoring frequencies have been changed to monthly to correct the inadvertent change in the last permit. Groundwater monitoring for volatile compounds has been changed from semiannually to annually. 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 Ashley Kabat at (919) 707-3658 or ashley.kabat(@ncdenr.gov. Sincerely, Lmda Culpepper, Director v Division of Water Resources cc: Currituck County Health Department (Electronic Copy) Washington Regional Office, Water Quality Regional Operations Section (Electronic Copy) Laserfiche File (Electronic Copy) Digital Permit Archive (Electronic Copy) Central Files NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION DEPARTMENT OF ENVIRONMENTAL QUALITY RALEIGH 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 Ocean Sands Water and Sewer District Currituck County FOR THE operation of a 600,000 gallon per day (GPD) wastewater treatment and high -rate infiltration facility consisting of: construction and operation of a 400,000 GPD Phase II and Phase III Amphidrome wastewater treatment facility consisting o£ two 47,285 gallon primary clarifiers with four 1 horsepower (hp) solids removal pumps; a 35,208 main reactor dosing tank with eight 7.5 hp dosing pumps; a 49,424 gallon mudwell with four 1 hp solids -removal pumps and two 7.5 hp return pumps; eight 7,480 cubic foot (ft3) main submerged attached -growth bioreactors (SAGB); two 20,000 gallon clearwells and one 24,684 gallon clearwell with sixteen 6 hp backwash pumps, four 3 hp secondary reactor dosing pumps, and four 3.8 hp secondary reactor backwash pumps; two 934 ft3 secondary SAGB; one 55 gallon chlorination plastic drum tank; an electric pulse pump; two 36,550 gallon solids holding tanks with one 0.5 hp decant pump; two 39,859 gallon holding tanks; twenty chemical feed pumps; six 30 hp blowers; an effluent flowmeter; a final dosing chamber with a 16,667 gallon working -volume; two 9.5 hp final dosing pumps; one 750 kilovolt -amp (kVa) generator; and all associated piping, valves, controls, and appurtenances; the continued operation and subsequent demolition of the existing 500,000 GPD wastewater treatment facility consisting of. a 180,000 gallon influent aerated surge tank with odor control; a 500,000 GPD clarifier set; a 50,000 gallons of residuals storage; a 280 square feet (ft2) of tertiary filtration capacity; a 10,417 gallon liquid chlorination facility; a 3,200 gallon dosing tank; a 200 kilowatt (kW) standby generator; and all associated piping, valves, controls, and appurtenances; the continued operation of a 200,000 GPD Phase I Amphidrome wastewater treatment facility consisting of: a 600,000 GPD flow equalization basin; a 3.8 million gallon per day (MGD) channel grinder; a 5.5 MGD fine screen; a manual bar screen; three 50,000 gallon FEQ chambers; a 47,285 gallon primary clarifier; a 27,000 gallon main reactor dosing tank; four 13,990 gallon main SAGB; a 7,000 gallon secondary SAGB; one 20,000 gallon and one 11,882 gallon clearwell units; a 55 gallon chlorination tank; an electric -pulse pump; one 36,550 gallon and one 39,859 gallon sludge holding tanks; a flowmeter; an auxiliary generator; and all associated piping, valves, controls, and appurtenances; the continued operation of a 600,000 GPD high -rate infiltration facility consisting of: a 2.41 acre high -rate infiltration field with 118 spray irrigation heads served by two 15 hp submersible dosing pumps; and all associated piping, valves, controls, and appurtenances; and the WQ0000185 Version 3.4 Shell Version 180901 Page 1 of 11 continued operation of a groundwater lowering system consisting of. a series of trenches; a pump station located in the northeastern corner of the site that conveys groundwater from the groundwater lowering system to an unnamed tributary into Currituck Sound; and all associated piping, valves, controls, and appurtenances to serve the Ocean Sands WWTP, with no discharge of wastes to surface waters, pursuant to the application received January 31, 2019, subsequent additional information received April 9, 2019, 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 June 30, 2024, shall void Permit No. WQ0000185 issued July 17, 2017, and shall be subject to the following conditions and limitations: I. SCHEDULES 1. Demolition of the existing 500,000 GPD wastewater treatment facility plant shall begin within 30 days of completion of construction of the Phase II and III Amphidrome wastewater treatment facilities . [15A NCAC 02T .0108(b)(1)(B)] 2. Upon completion of construction and prior to operation of the permitted modifications, the Permittee shall submit an engineering certification from a North Carolina licensed Professional Engineer certifying that the permitted facility has been constructed in accordance with G.S. 143-215.1, Administrative Code Title 15A Subchapter 02T, this permit, and the Division -approved plans and specifications. For phased and partially certified facilities, the Permittee shall retain the responsibility to track further construction approved under this permit, and shall provide a final engineering certification upon project completion. Mail the Engineering Certification to the Division of Water Resources, Non -Discharge Branch, 1617 Mail Service Center, Raleigh, NC 27699-1617, or Non- Discharge.Reportstiz?,ncdenr. og_v. [15A NCAC 02T .0116(a)] 3. The Permittee shall notify the Washington Regional Office, telephone number (252) 946-6481, at least two business days in advance of initial operation of the constructed facilities so that the Division can conduct a startup inspection. [15A NCAC 02T .0108(b)(1)(B)] 4. The Permittee shall request renewal of this permit on Division -approved forms no later than January 2, 2024. [15A NCAC 02T .0105(b), 02T .0109] II. PERFORMANCE STANDARDS The Permittee shall maintain and operate the subject non -discharge 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, or failure of the infiltration areas to assimilate the effluent, the Permittee shall take immediate corrective actions, including Division required actions, such as the construction of additional or replacement wastewater treatment or disposal facilities. [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. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T .0705(b)] WQ0000185 Version 3.4 Shell Version 180901 Page 2 of 11 5. Application rates, whether hydraulic, nutrient, or other pollutant, shall not exceed those specified in Attachment B. [15A NCAC 02T .0705(m)] 6. High -rate infiltration sites permitted on or after December 30, 1983 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(i), G.S. 143-215.1(k)] 7. The review boundary 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] 8. 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)] 9. No wells, excluding Division -approved monitoring wells, shall be constructed within the compliance boundary except as provided for in 15A NCAC 02L .0107(g). [ 15A NCAC 02L .0107] 10. 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 Currituck 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. [15A NCAC 02L .0107(f)] WQ0000185 Version 3.4 Shell Version 180901 Page 3 of 11 11. The facilities herein were permitted per the following setbacks: a. The infiltration sites were modified April 15, 2002. The setbacks for infiltration sites originally permitted or modified from February 1, 1993 to September 1, 2006 are as follows (all distances in feet): i. Each private or public water supply source: 100 ii. Surface waters: 200 iii. Groundwater lowering ditches: 200 iv. Surface water diversions (upslope): 200 v. Surface water diversions (downslope): 200 vi. Each well with exception of monitoring wells: 100 vii. Each property line: 501 viii. Top of slope of embankments or cuts of two feet or more in vertical height: 100 ix. Each water line: 10 x. Each swimming pool: 100 xi. Public right of way: 50 xii. Nitrification field: 20 xiii. Each building foundation or basement: 15 1 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 02H .02190)(5)] The to -be -demolished 500,000 GPD wastewater treatment facility was modified April 15, 2002. The setbacks for storage and treatment units originally permitted or modified from February 1, 1993 to September 1, 2006 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 2, 3 vi. Nitrification field: 20 1 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 Per a settlement agreement recorded in the Currituck County Register of Deeds, reduced setbacks from the treatment units to any property line are as follows: Parcel No. Deed Book / Page Setback Description open spaces on locate and maintain previously recorded utility facilities related plats Sections D, E, F, 230 / 600 0 feet to the water and sewer H, I, J, K, L, N, P, Q, systems within the R, and G. specified areas [15A NCAC 02H .02190)(5)] WQ0000185 Version 3.4 Shell Version 180901 Page 4 of 11 c. The Phase I Amphidrome treatment unit was permitted May 29, 2015, and the Phase 1I and III Amphidrome treatment units were permitted July 17, 2017. The setbacks for storage and treatment units originally permitted or modified from September 1, 2006 to August 31, 2018 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 2,3 1 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 Per a settlement agreement recorded in the Currituck County Register of Deeds, reduced setbacks from the treatment units to any property line are as follows: Parcel No. Deed Book / Page Setback Description open spaces on locate and maintain previously recorded utility facilities related plats Sections D, E, F, 230 / 600 0 feet to the water and sewer H, I, J, K, L, N, P, Q, systems within the R, and G. specified areas [15A NCAC 02T .0706(d), 02T .0706(e), 02T .0706(f), 02T .0706(g)] III. OPERATION AND MAINTENANCE REQUIREMENTS 1. The Permittee shall operate and maintain the subject facilities as a non -discharge system. [15A NCAC 02T .0700] 2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include operational functions, maintenance schedules, safety measures, and a spill response plan. [15A NCAC 02T .0707(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. The Permittee shall take measures to prevent effluent ponding in or runoff from the infiltration sites listed in Attachment B. [15A NCAC 02T .0707(c)] 5. Infiltration equipment shall be tested and calibrated once per permit cycle. [15A NCAC 02T .0707(d)] 6. Only treated effluent from the Ocean Sands WWTP shall be infiltrated on the sites listed in Attachment B. [15A NCAC 02T .0701] 7. The Permittee shall not allow vehicles or heavy machinery on the infiltration area, except during equipment installation or maintenance activities. [15A NCAC 02T .0707(e)] WQ0000185 Version 3.4 Shell Version 180901 Page 5 of 11 8. The Permittee shall prohibit public access to the wastewater treatment, storage, and infiltration facilities. [15A NCAC 02T .0705(p)] 9. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [ 15A NCAC 02T .0708, 02T .1100]. 10. The Permittee shall not divert or bypass untreated or partially treated wastewater from the subject facilities. [15A NCAC 02T .0705(i)] 11. 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)] 12. Metering equipment shall be tested and calibrated annually. [15A NCAC 02T .0707(d)] 13. 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)] 14. 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 Washington Regional Office, telephone number (252) 946-6481, shall be notified prior to each cleaning. [15A NCAC 02T .0707(h)] IV. MONITORING AND REPORTING REQUIREMENTS 1. 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 treated effluent at the frequencies and locations for the parameters specified in Attachment A. [15A NCAC 02T .0108(c)] WQ0000185 Version 3.4 Shell Version 180901 Page 6 of 11 5. The Permittee shall maintain records tracking the amount of effluent infiltrated. These records shall include the following information for each infiltration site listed in Attachment B: a. Date of infiltration; b. Volume of effluent infiltrated; c. Site infiltrated; d. Length of time site is infiltrated; e. Loading rates to each infiltration site listed in Attachment B; and f. Weather conditions. [ 15A NCAC 02T .0108(c)] 6. Three copies of all monitoring data (as specified in Conditions IV.3. and IV.4.) on Form NDMR for each PPI and three copies of all operation and disposal records (as specified in Condition IV.5.) on Form NDAR-2 for every 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 [15A NCAC 02T .0105(1)] 7. 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 wastewater treatment 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. 143-215.1C(a)] 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)] 9. 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 infiltration equipment calibration; c. Date and results of power interruption testing on alternate power supply; d. Visual observations of the plant and plant site; and e. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections and cleanings, etc.). WQ0000185 Version 3.4 Shell Version 180901 Page 7 of 11 [I 5A NCAC 02T .0707(i)] 10. Monitoring wells MW-4, MW-5, MW-6, MW-7, and MW-9 shall be sampled at the frequencies and for the parameters specified in Attachment C. All mVpiRg, 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 Figure 1. [ 15A NCAC 02T .0105(m)] 11. 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)] 12. Noncompliance Notification: The Permittee shall report to the Washington Regional Office, telephone number (252) 946-6481, 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 facility failure resulting in a discharge to surface waters. d. Any time self -monitoring indicates the facility has gone out of compliance with its permit limitations. e. Ponding in or runoff from the infiltration sites. Emergencies requiring reporting outside normal business hours shall call the Division's Emergency Response personnel at telephone number (800) 662-7956, (800) 858-0368, or (919) 733-3300. All noncompliance notifications shall file a written report to the Washington 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)] WQ0000185 Version 3.4 Shell Version 180901 Page 8 of 11 1I1 1. The Permittee shall perform inspections and maintenance to ensure proper operation of the wastewater treatment and infiltration facilities. [15A NCAC 02T .07070)] 2. The Permittee shall inspect the wastewater treatment 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 02T .0707(i), 02T .07070)] Division authorized representatives may, upon presentation of credentials, enter and inspect any property, premises, or place related to the wastewater treatment 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)] VI. GENERAL CONDITIONS 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(0)] 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)] WQ0000185 Version 3.4 Shell Version 180901 Page 9 of 11 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 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] 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. 143-215.6B, or under Federal law that would otherwise be prosecuted under G.S. 143-215.6B, 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 30t` day of April 2019 NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION j { _ ?�mda Culpepper, Director Division of Water Resources By Authority of the Environmental anagement Commission Permit Number WQ0000185 WQ0000185 Version 3.4 Shell Version 180901 Page 10 of 11 Permit No. WQ0000185 High -Rate Infiltration System Ocean Sands Water and Sewer District April 30, 2019 Ocean Sands WWTP Currituck County ENGINEERING CERTIFICATION ❑ Partial ❑ Final I, , as a duly licensed North Carolina Professional Engineer, having ❑ periodically / ❑ fully observed the construction of the permitted facilities, do hereby state to the best of my abilities that the facility was constructed in compliance with G.S. 143-215.1, Administrative Code Title 15A Subchapter 02T, this permit, and the Division -approved plans and specifications. Documentation of any variation to this permit, and the Division -approved plans and specifications, is in the attached as -built drawings. Description of variations: Professional Engineer's Name Firm Name Firm No. Address City I State I Zip Code I Telephone I Email I Seal, Signature, and Date I THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING ALL SUPPORTING DOCUMENTATION, SHALL BE SENT TO THE FOLLOWING ADDRESS: NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY DIVISION OF WATER RESOURCES NON -DISCHARGE BRANCH By U.S. Postal Service By Courier/Special Deliven_ 1617 MAIL SERVICE CENTER 512 N. SALISBURY ST. RALEIGH, NORTH CAROLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604 WQ0000185 Version 3.4 Shell Version 180901 Page 11 of 11 TH IS PAGE BLAND. le M O 4 a) EM rN rid F o o °' o 0 0 0 0 0 0 �] U U U U U U U U U a N N N N N N N N Zi �.Ty O M O U O O O O O M O k k k k k k k k N N N N N N N N _ A e C T F A C � C d H W U' o � 3 � - o C O N o �d . z 00 :d cn � � U ?; � o Qo y o E E . 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O cn 0 0 0 O D U cz U O O O v O O U •�+ O U OU U ate+ > OJ U O �., 45 >, E y 7 kr; O 'O 3 bA G O 0 We � r-� w 0 a� cc v 11, 7 11= li m �. t,1 ... r� o a NORTH CAROLINA } RRITUCK COUNTY BOOK 2 3 0 PAGE 600 �� SETTLEMENT AGREEMENT G S AGREEMENT is entered into this 16th day of June, 1987, by and betwtd Coastland Corporation a corporation duly organized under the laws of the(tate of North Carolina and having principal offices located at 1112 Laskin 00, Virginia Beach, Virginia, 23451, and Ocean Sands, Inc., a North 06A Tina corporation the assets of which have been merged into Coast land%ereinafter sometimes collectively referred to as "Coastland"), and CurritQk County, a body corporate and public organized under the laws of the Staoe of North Carolina and having principal offices at the Currituck County Courthouse, Currituck, North Carolina 27929 (hereinafter, "the County"). WHEREAS, Coastland is engaged in the business of real estate development on t uter Banks of Currituck County, and in particular is the developer of a Ossort project known as Ocean Sands; and WHEREAS, CoastlaieeApfendant rporation and Ocean Sands, Inc. are plaintiffs and Currituck County is in litigation now pending in the United States District Court i the Eastern District of North Carolina, (No. 84-38-CIV-2, hereinafter,>.referred to as the "federal suit"), which litigation involves the ��rraayyl,idity of certain zoning regulations as they affect the Ocean Sands devel nt; and WHEREAS, Currituck CountM s the plaintiff and Coastland Corporation is the defendant in litigation v pending in the North Carolina Court of Appeals (No. 841SC1168, hereinafter referred to as the "state suit"), which litigation involves the validity,o^ an agreement the terms of which purport development; and to require the County to provide16r and sewer service to the Ocean Sands WHEREAS, the parties to this agr,N�fent recognize it is in their mutual best interest to resolve all penditigation and other matters of controversy or dispute arising outor related to the Ocean Sands development; and WHEREAS, pursuant to Section 719C of to County toning Ordinance, The Board of County Commissioners on April 21, 1987 issued to Coastland Corporation a conditional use permit (hereinafter "The Permit"), attached hereto as Exhibit A authorizing it to complete Ocean Sands and made the effectiveness of that permit expressly contilMent upon execution by Coastland of this settlement agreement and comp aMce with certain of its terms; ernn NOW THEREFORE, in consideration of the premises the mutual covenants set forth below, the parties hereby agree as follows• �e �J (1) Coastland. Where applicable, the term shall include Coastland's successors and assigns, including purchasers from Coastland of lots or tracts within Ocean Sands. (2) Co�unq. Currituck County. To the extent that the County's obligations under this agreement are assumed by the District, then the term "County" shall, in appropriate context, refer to the District. V `(� V1, Y" Y (3) District. The water and sewer district established in accordance with ection 4 of this agreement. Econ�omicalll Infeasible. Notwithstanding that the dominant purpose o{—this Agreement is to assure Coastland that its Ocean �" Sands development may henceforth be and remain marketable without elay or interruption on account of the unavailability of water d sewer service, a proposed manner of providing such service s�ll be considered economically infeasible if reasonable minds wo not differ that the cost of providing such service in that marm9k is excessive to the extent that it would be utterly unreiasonable and unrealistic to require that the service be provided in that manner, considering the benefit to Coastland and the ability of the County to finance such service. (5) Master PW, The master plan of Ocean Sands, consisting of three drawings led MP1, MP2, and MP3 prepared by Envirotek, Inc. and dated ApriT,4, 1987, a copy of which is appended to Exhibit A, attached here and the contents of which are a part of this agreement. (6) Utility Facilit`es. The term shall include wells, ponds, pumping sta ions-, a'1-Cn s",'es"ewage treatment and discharge facilities, water treatment and sto0ae facilities, water and sewer lines and other equipment and faci�ies related to the water and sewer systems required for Ocean los. (7) Ocean Sands. The entKre development (consisting of approximately 67T—acres covered by the ermit. Section 2. Coastland's Genera li ations. (a) Within thirty days aftero he execution of this agreement, Coastland shall: (1) Pay in full by cashier's or ertified check the amount of delinquent ad valorem taxes an nterest it owes on properties listed in the name of Coastland amoration or Ocean Sands, Inc. r� Q flaOK 230 PAGE 602 3 for tax years 1977 through 1980 as well as 1984 and 1985. If paid on or before July 31, 1987, this amount shall be $88,393.66. The County acknowledges that, with such payment, the ad valorem tax obligation of Coastland for all years through 1985 will have been O fully satisfied with respect to all properties described in the first sentence of this subsection (1). (2);�Convey or have conveyed to the County the following: To the extent not previously dedicated or conveyed, all existing water and sewer lines outside the boundaries of individual lots as well as necessary easements for the same. b. All easement rights it has retained to locate and maintain utility facilities related to the water and sewer systems within areas dedicated as open spaces on previously recorded plat of Sections D, E, F, H. i, J, K. L. N, P. Q. and R, as wel open space located on the west side of Ocean Trail with Section G (i.e., the present site of the water treatmk& plant). (3) Execute and I with the U.S. District Court for the Eastern District of Ndkt.Carolina the Notice of Voluntary Dismissal of the federal sui"ttached as Exhibit B; and (4) Execute and delivP Michael 8. Brough, Attorney for the County, the Motion to With Appeal in the state suit, a copy of which is attached as Exhiblo (5) Execute and deliver to Michael B. Brough, Attorney for the County, The Motion to Vacate J nt and Enter Consent Judgment, Motion to Amend Complaint and d Party Defendant, and the proposed Consent Judgment, attache Exhibits D, E1, and F respectively. (b) Coastland shall pay to the C<"'ty on or before December 31, 1987: (1) All delinquent ad valorem taxe nd interest owed on the property within Section F of Ocean Sands own as Sea Loft Village for tax years 1980 through and including 6. If paid during the month of December, 1987, this amount sha(T be $42,851.69. (2) All delinquent taxes and interest it owes on property within Ocean Sands for tax year 1986. If paid during the month of December, 1987, this amount shall be $67,342.71. (c) Simultaneously with the execution of tos agreement. Coastland shall provide the County with an interim easem from James Johnson (substantially in the form attached hereto as Exh� 6) to utilize that portion of Section V (approximately two acres adj a to the existing rotary distributors) that is necessary to accomnodatlf�he two additional rotary distributors that must be constructed immediatel o comply with the Y� r� .111Y.1 YG .1. pr.YYG- 7. 1"". r.IG G..,11Y Y4.G 1/Y14G. .i .R. Yi Y6Y '. ■ - %-, Q Master Alan and that title to said Section V is to vest in the County as provided in subsection (d). yl�\ (d) Coastland acknowledges that the County is entitled to acquire title to the eight acre parcel shown as Section V and -covenants that neither Coastland nor J.E. Johhson, Jr., present title holder, will object to the entry by the court of an order vesting title in the County pursuant to the terms of a Settlement Agreement entered into between Whalehead Q%Properties, et al, and Coastland dated February 20, 1984. (e) With respect to all sections of Ocean Sands where common open sp (including reserve utility open space) is required other than those se ons specified in subsection 2(a)(2)b above, Coastland shall convey or hav conveyed to the County easement rights to locate the facilities descKT4ed in subsection 2(a)(2)b within such open space areas, (See Sectibpl,7 below for limitations upon the County's discretion to locate utilit l-_cilities in open space.) (1) Q h conveyance shall be made before any lot within any such sl$tion is sold or before any building permit is issued for such s I eoelon, whichever occurs first, unless conveyence is earlier req fired under (2) below. (2) If the County determines that, consistent with the other provision& of this agreement, utility facilities must be installed in an 6Meveloped section of Ocean Sands before Coastland designate the area(s) within such sections that are to be preserved common open space in accordance with subsection 5(d)(4) of � Permit, then the County may submit to Coastland a written reqWt to convey to the County easement rights for a specified aret,Qithin the section in question (up to a maximum open space perc�ptage set forth in Section 5(d) of The Permit) and Coastland shall,oithin thirty days after receiving such request, either: a. Convey the regi*ted easement rights, or b. Notify the County of its intent to withdraw the section in question from the s of the Permit as provided in Section 10(b) of the Permior C. Notify the County of0ts intent to submit to the County a master plan for the d�lopment of that section which shows haw the required open ace will be provided. This plan shall be submitted to th ounty within sixty days thereafter and Coastland shall conve o the County (simultaneously with the transmission of the Gitar Plan or as soon thereafter as possible) easement right ,-(to the open space area so designated. V 0 BOOK 2 3 U PAGE 604 (f) Within forty-five days after receiving from the County a written �equest to do so (which request shall be made only if the County determines the requested easements are reasonably necessary to provide water service u this agreement), Coastiand shall convey to the County (i) an easement th gh Sections X and Y to allow a water line and pump to be constructed to w water from Currituck Sound for the proposed desalinization plant, as 1 as (ii) an easement to allow salinized water from the desal nation plant to be discharged into the ocean. (g) th respect to the conveyances required under this section, Caasttan all bear the cost of deed preparation and revenue stamps (if required by��), and the County shall pay the cost of recording the deeds. If the Co y requires a metes and bounds description, this shall be provided by the County. Section 3. County's Obligation to Provide Service. (a) Subject and in accordance with the remaining provisions of this agreement, the Cou* shall provide and maintain water and sewer service to the entire Ocean S418F development. (b) On the date %str.sng agreement is executed, the water supply source for the water system the Ocean Sands development consists of three shallow aquifer wells. ,,4he parties anticipate that the existing wells, together with two additii 1 wells to be located within the Ocean Sands development, can provide i for to 800 dwelling units (or the equivalent in non -reside 1 demand). Thereafter, and subject to subsection (d), the County h ll obtain additional water from whatever source can provide an adequaW and assured long term source of supply at the most reasonable cost. Among the alternatives that have been identified as being technically feasible a the folowing: (i) additional wells , located on the Outer Banks but side the Ocean Sands development; (ii) f. mainland wells, with a water SUPM line running across Currituck Sound; (iii) a desalinization plant with r water obtained either from deep wells or Currituck Sound, and (iv) Dare Co� (c) On the date this agreement. executed, the sewage treatment system serving the Ocean Sands devel �nt relies mainly upon existing drain fields and a rotary distributor the disposition of treated wastewater. The parties anticipate that Wadditional rotary distributors will be installed within Section V to meet the immediate need to expand the system's capacity in accordance with State requirements. Thereafter, additional system capacity will be obtained by installing underground low pressure drain fields rather than above ground_votary distributors unless (i) approval cannot be obtained from apprWiate state or federal regulatory authorities, or (ii) underground line rove to be economically infeasible, or (iii) the parties agree upon a sat j�yctory alternative. (d) The County shall, following generally adce ted principles and policies of a public utility, make water and sewer see available within Ocean Sands as needed on a timely basis so that developent is not delayed Y� reason bond financing is not available or for other sound reasons. In O addition, while both parties reasonably expect that the water and sewer systems described herein can be constructed and financed as contemplated, both parties also recognize that the future cannot be predicted with certainty and that the County shall not be required or expected. in order to provide service as contemplated under this agreement, to attempt that which is impossible or that which, while theoretically possible, is illegal or economically infeasible. Nor shall the County be under any obligation o condemn land located outside of Ocean Sands to fulfill its obligations under this agreement (although nothing in this agreement shall be nterpreted as limiting the County's right to exercise its power of eminent domain as to land outside of Ocean Sands). .0 ) The County shall make water and sewer service available to Sect s4 0 and M as soon as possible after Coastland has supplied the Count ith the in tract engineering design plans for those sections. Seci:*n 4. Creation and Ex�sion of District Within Ocean Sands. (a) "i; is understood that the County expects to fulfill the obligationsv-;tt forth in Section 3 by establishing a Water and Sewer District undbrArticle 6 of G.S. Chapter 162A, and that the District shall assume the County's obligation as provided in Section 10. However, assumption by the District shall not relieve the County of its obligations under this agreement. (b) At the f regular meeting of the Board of Commissioners after the mutual executii�d f this agreement, the County shall initiate action to establish the DistrQ and shall diligently pursue the establishment of this District within 00 t earliest time frame permissible under the law. Initially, this Distri t,�hall include all that area designated as sections 0, E, F, H, I, J. K. t,CN P, 4, and R on the Master Plan. (c) The District estCished in accordance with subsection (a) may be expanded under the provist of G.S. 162A-87.1. Within the sections of Ocean Sands (as shown on thb aster Plan) that are not included within the District initially, the Dis i t shall be expanded in a manner that is consistent with the mutual it ?ent of the parties that (i) the District provide service only to areas that are within the District, and (ii) areas be annexed to the District ord as water and sewer service becomes available to them. Within Se on T, Coastland shall petition for annexation to the District underS. 162A-87.1(b) in a manner that is consistent with this subsection. ( use an extension of the District can become effective only at the beginnifW of a fiscal year, it is recognized that service to a particular area m aetually become available shortly before or after that area is added to t District). (d) It is acknowledged that, under. Gen. Stat. § 162A-89, the governing body of the District shall be the Currituck County Board of BOOK 230 PAGE 606 C �si H th �,,l omms oners. owever, a Board shall establish an advisory committee to Vceive information from and make recommendations to the Board on all 2pects of the District's operations. The advisory committee shall consist of at least three but no more than five members, and its composition shall b signed to ensure input from those most affected by the operations of th strict. The committee's membership shall include at least one member rec nded by the Ocean Sands Property Owners Association and one member rec �ded by Coastland. Sec n 5. Expansion of District and Providing Service BVond �,0..�� 'Ocean and (a) Ezeh t as provided in the remainder of this section, nothing in this agreemi shall limit the discretion of the governing body of the District to determine whether, when, and under what conditions the District should be expanded beyond the boundaries of Ocean Sands or water and sewer services provided by the District beyond those boundaries. (b) Subject t ubsection (d) and except as otherwise mutually agreed by the parties in ting, expansion of the District beyond Ocean Sands or provision by the Di riot of water or sewer service beyond Ocean Sands shall be permissible as follows: (1) Capacity to se0lce Ocean Sands to the fullest extent development is authorized unWr the Permit must be assured. (2) The natural resoup of Ocean Sands shall not be impaired or used in any way to provt. service outside Ocean Sands. (3) For a period of ten �0)ars after the execution of this agreement, the water and sewer treatment plants located within Ocean Sands shall not be used to prgAa service outside Ocean Sands. (c) If any of the utility f%Slk0_ ities installed to provide water or sewer service to Ocean Sands are larger than is reasonably expected to be necessary to provide service tcean Sands, with the expectation or intention of using such facilities to vide service to developments other than Ocean Sands, then the costs ociated with "oversizing" such facilities shall not be paid for out revenues generated by or from properties within Ocean Sands. X (d) Should the District determine that it is willing to provide service to areas outside Ocean Sands but that, consistent with subsection (b), it can provide such service only if Coastland agrees and relinquishes its right to construct some of the ,commercia or residential density authorized under the Permit, then the Distric ay serve areas outside Ocean Sands after Coastland officially relinquis some of its authorized density in the manner required by Subsection 4(h) of -$he Permit. Coastland shall not be entitled to any compensation from theynty or the District for any such reduction in density, but nothing inT /s agreement shall prohibit Coastland from receiving some consideration another developer Y� Section 6. Financinq of Epansions. a (a) Subject to subsection (c), Coastland shall install at its expense all capital facilities necessary to connect individual lots within the sections of Ocean Sands to the water distribution mains and sewage �* collection mains that make water and sewer service available to these �1 sections. Without limiting the generality of the foregoing, such "facilities shall include water distribution and sewage collection lines erving individual lots, laterals, water meters, etc. (b) Subject to subsection (c), the cost of constructing all other new caps al facilities necessary to provide water and sewer service to Ocean Sams shall be borne by the County (or the District as the successor for the unty) and shall be paid for out of revenues generated by the develVAent, except that the County shall apply for any federal or state funds ilable for water and sewer purposes and shall make those funds ayailab to the District and shall otherwise deal with Ocean Sands and the District a fair and impartial basis relative to other County -owned or District-6fted water or sewer systems operated within Currituck County. Except as Vqvided for herein, the County shall be under no obligation to transfer Co % funds to the District or otherwise expend County revenues to fund or 40port the water or sewer systems serving Ocean Sands. For purposes of this subsection, "revenues generated by the development" means monthly service charges, impact fees, or other fees and charges paid by Ocean Sands property owners who are customers of the water and sewer system, property es levied under Article 16 of G.S. Chapter 153A, or Article 6 of G.S. apter 162A, and paid by Ocean Sands property owners, or other revenues dVAved from the Ocean Sands property owners as a result of water or sewer ser®ce and not generally paid by other County residents. (c) The parties rnize that substantial fill material may have to be added to Section Y aperhaps other areas to make the waste treatment facilities operate propeijy'. Coastland shall be responsible for providing such fill to the County Coastland's expense in accordance with this subsection: * (1) If Coastland is u essful in obtaining permission from appropriate federal dF state agencies to construct a marina in Section Y, and if the ma erial removed to create the marina can satisfactorily be used a fill material (sand or dirt), then Coastland shall bear the st of digging out said materials and stockpiling it ready for r transportation. The County shall bear the cost of transpor this fill material to the sewage treatment site and unloading �k (2) If the material from the propo� marina site is suitable for fill but Coastland has not received ission to construct a marina by the time the County needs the j� material, or if the material Q Bou 230 PAGE 608 9 from the proposed marina site is unsuitable for fill, then Q� > Coastland shall still be responsible for making necessary fill `C material available to the County within the Ocean Sands development at no charge, but the cost of removing and transporting such borrowed material shall be borne by the County. In such event, the County shall exercise due care to leave the 0 premises except for the excavated area as nearly as practicable in the condition it was before such removal. (3) stland's responsibility to make fill "available" within Ocean s under this subsection shall mean making available to the Co access to the fill materials without undue burden or exp e. However, Coastland's obligation to provide fill within Ocea Sands shall not extend to any undertaking that is econ ically infeasible, meaning any undertaking about which reasonable minds would not differ that the cost of providing fill in that manner is excessive to the extent that it would be utterly unreasonable and unrealistic to require Coastland to provide fill in that m nV;r, considering the benefit to the County and the effect upon le marketability of Coastland's property. (d) The County consistent with sound and accepted utility management practices, a lish and revise from time to time a schedule of rates and charges suffici to meet its expenditure obligations. (1) To the extent rea3 bly possible, the cost of capital expansions shall be paid forjth funds derived from impact fees or the issuance of bonds, en bonds are issued, impact fees shall be established at a rateg0easonably calculated to provide sufficient funds to cover a subntial portion if not all of the bond payments, except that i pact fees shall not be set at unreasonably high levels considering s h factors as the comparable cost of providing water and sewerrvice by wells and septic tanks and the amount of impact iQs charged by other Outer Banks communities. 0 (2) Revenues from monthly servic harges shall generally be used primarily to cover operation maintenance expenses and to a lesser extent to provide capital erves or make bond payments. (3) The District shall establish its Ormenue structure to minimize (and eliminate if possible) the degree to which ad valorem taxes must be levied to establish capital revenues, make bond payments, or cover operating costs. (4) Before increasing monthly service charg or impact fees, the County shall provide to Coastland thirty, ys written notice of the intent to increase such fees or charges. Such increases shall not become effective until thirty days aftQ Coastland receives such notice or until the County receives`( stland 's written comments on such increases, whichever occurs ea oer. 6 0 �X systems when peak usage of the systems reaches approximately 80X of capacity. Decisions on the size of any plant expansions shall be made in VIC, recognition of the County's obligation to expand the plant as necessary to keep pace with development while avoiding the capital and maintenance costs �• associated with excessive expansion. To this end, the County shall adopt policies to ensure that, whenever Coastland or a successor purchaser of a tract requests expansion of the water and sewer systems to accommodate new development, the County is protected from the risk of undertaking the Q) expense of the expansion and then not having the development occur, to the �Atriment of the ability to pay bonds issued to finance such expansion. in addition to other policies that may be adopted to accomplish the foregoing ob,.kctive, the County shall adopt a policy that provides that, whenever a deroloper submits a written request for an expansion, the County shall pr d with the requested expansion using all due diligence so that servcan be provided as soon as reasonably possible but not later than two s after the date of the request, if: (1)%jhe expansion can be financed through the sale of bonds (to the ( veloper or other purchasers) or funds for the expansion are o erwise available; and (2) Th developer makes a commitment to connect dwelling units or other development to the system according to an agreed upon schedule and to pay applicable fees (including without limitation impact fe s and monthly service charges), to the extent necessary to assu ' that, if the proposed development or other development does not ugh e requested capacity, the County will recover its capital ead ongoing maintenance costs, and provides adequate security a letter of credit, deed of trust on the property detOlOped, or other means) satisfactory to the County to guarantee thitleommitment. (f) All in -tract i��,qs and other facilities shall be constructed in accordance with the poli M , and specifications of the County. Lines and other facilities not conWucted by the County, together with necessary easements, shall be dedica* to the County before connection is made to the systems operated by the nty. Upon dedication, the County shall be responsible for maintenance of such lines and other facilities. (g) Any agreement betweed6khe County and a contractor for the construction of water or sewer (Jacilities shall contain schedules for completion and penalty provisions. Section 7. Location of Utility ilities. l' r� Q BOOK 23 U PAGE 610 I� (a) while Coastland shall convey to the County easement rights to �o struct and maintain utility facilities within all common open space as of Ocean Sands as provided in subsections 2(a)(2) and 2(e) of this agreement, the County's discretion to locate such facilities within such openApace areas shall be subject to the provisions of this section. Q Sewage treatment facilities (including underground distribution lines)(ased to provide service to all sections other than Sections G and T shall, the extent possible, be located within Section V. Sewage treatmen acilities used to provide service to Section G shall preferably be locate ,,�((ithin Sections V or G, and sewage treatment facilities used to provide segye to Section T shall prefereably be located within Sections V, T, or S., (c) If rotary distributors are required to be used to provide adequate sewage treatment and such distributors cannot be confined within Sections V. G, and T, then such rotary distributors shall be located within reserve utility open space eas (i.e., the shaded areas shown on the Master Plan) to the extent possi. (d) Coastland athe County expect and plan that the proposed water desalinization treatm nd storage facilities will be located in the open space area between Sec i ns H and I as shown on the Master Plan (drawing MP2). However, shouldMe County be prohibited for any reason from locating these facilitie y b the indicated area, then it is acknowledged that such facilities may placed in the open space set aside within Section G in a location appt,� by Coastland. e) Before locating or *m i g a contractual commitment to locate any above ground utility facilitiesmtside Section V, the County shall provide Coastland with at least thirty days written notice of the County's intent to place described facilities in identified location. Coastland may then provide the County, orally in writing, with any comments or suggestions it may have on the Cou 's plans. The County may not act to implement its proposed plans until thirty day period has expired or until it receives Coastland's written t*l ents, which occurs earlier. Section 8. Detailed Plan for Provi Service. (a) The County shall prepare or haveyl,*"pared for it (and furnish to Coastland) a complete plan for how water and4ewer service will be provided to meet the County's obligations under this agreement. This plan shall include analysis of how the costs associated with constructing, operating, and maintaining the proposed system are to be financed. Within ninety days following the execution of this agreement, th County shall provide Coastland with a written summary of the proposez lan, setting forth the alternatives under consideration, the projected Istope of the plan, and estimated taxes, fees, and rates. A complete p1 hall 'be provided to Coastland within one year after execution of this ag nt. (b) The purpose and intent of this subsection is\ -Mt to require the County to prepare complete design and construction \Awawings for the can responsibly and in a timely fashion meet its obligations under this agreement. (c) The plan required under subsection (a) shall be updated annually (and a copy furnished to Coastland) until Coastland has sold 90% of the lot area within Ocean Sands or until the passage of twenty years, whichever occurs first. v(d) The County's obligations under subsection (a) shall be contingent p9n compliance by Coastland with the provisions of Section 2(b) of this a reement. 4tion 9. Miscellaneous County Oblieations. (a In consideration of the conveyance to the County of the easement rights scribed in subsections 2(a)(2), and 2(e) of this agreement, the County l: (1) in five days after it receives the tax payment specified in su ction 2(a)(1) and the deeds of easement described in Ssub mo�ttion 2(a)(2), transmit to Coastland a check in the amount of $94,$03.30. (2) Within five days after it receives the tax payments specified in subsection 2(b), transmit to Coastland a check in the amount of $29,808. 596 (b) Within fivlo days after receipt of the documents specified in subsections 2(a)(3), &)(4) and 2(a)(5), the County shall, by and through its attorney, Michael rough, execute and file with the North Carolina Court of Appeals the "M � " to Withdraw Appeal" attached hereto as Exhibit C. \->. (c) As soon as the Moro Carolina Court of Appeals allows the parties' Motion to Withdraw Appeal a".&'remands the action to the Superior Court of Currituck County, the County #011, by and through its attorney Michael S. Grough, execute and file wiq �he Superior Court the Motion to Vacate Judgment and Enter Consent Juifgment, Motion to Amend Complaint and Add Party Defendant, and the proposed Consent Judgment, attached hereto as Exhibits D, E1, and f respectivel;D (d) Within ten days after the\Dislct), t has been finally established under G.S. 162A (i.e.. the 30 day pappeals regarding the creation of the District has passed withouor any appeal filed has been finally resolved in favor of the the County shall record an instrument or instruments conveyingistrict all the County's right title, and interest in the waterr systems (including all real property interests conveyed by Coaq� the County pursuant to this agreement). C 6 0 �Yh r� 0 • BOOK 2 3 U PAGE 612 13 Q? (e) The County shall actively support Coastland's efforts to obtain rmission from relevant state and federal agencies to develop Section Y as marina. At Coastland's request, the County shall act as a co -applicant T with Coastland to obtain necessary permits, but Coastland shall bear the re risibility for and cost of preparing and filing required permit app ilBaations. (i' The County shall actively support an effort to make liquor by the drink " lable within at least the Ocean Sands portion of the Outer Banks. (g) County shall install and maintain sufficient landscaping or other buffing devices so that all utility facilities are properly screened ye4+C round from the view of adjacent properties and streets. Evergreen screening shall be a minimum of five feet tall within three years of planting. In addition, lines providing electrical service to such existing and future facilities shall be run underground if located in any section where seco dary electrical service is otherwise run underground. If any utility f�lity or overhead line is abandoned by the County, it shall be cleaned 44 d removed at the County's expense. (h) Any easemen�{� r open space areas granted or dedicated to or for the benefit of the Coy that are not required under the Permit and are not reasonably necessar\(`to provide utility services to Ocean Sands as contemplated under the Permit and this agreement shall, at Coastland's request, be reconveyed by fqe County to Coastland. Section 10. Rights and •li ations of District as Successor toCount that; y. (a) The parties to this ement expect, and the County will assure, (1) The District will exec an instrument accepting all of the County's obligations undeQthis agreement in consideration of the County's conveyance to the strict of the County's right, title, and interest in the water sewer systems and related property interests as provided in Sub ion 3(c). (2) The District will, as soon as ronably possible, seek authoriza- tion from the qualified voters the District to issue bonds to finance the proposed expansion c�N the water and sewer systems necessary to serve the District. (b) Upon assuming the County's obligations under this agreement, the District shall also succeed to all of the County's rights and prerogatives under this agreement. G �o Y• c� treatment facilities as well as -water storage facilities, so ~long as such 0 relocation impose no additional capital or operating costs on the County and does not otherwise prejudice the County in any way. �- Section 12. Abandonment of Claims. (a) Coastland and the County hereby mutually cancel and terminate and abandon all claims (monetary and otherwise) arising out of that certain Oreement between the parties, entitled "Developer and County water and r Agreement," dated May 7, 1973, relating to provision by the County of w er and sewer services to the Ocean Sands development. Coastland hereby abandons any rights or interest it may have to develilits property in accordance with or pursuant to the conditional use permit sued by the County on March 20, 1973, for a planned unit develop- ment kn as Ocean Sands and further abandons any claims against the County ( etary or otherwise) resulting from any alleged deprivation of rights ar g out of the issuance of this permit. (c) The�Foregoing abandonment of claims is specifically made con- tingent upon tip creation of the District as set forth in Section 4 of the agreement and he acceptance by the District of the County's obligations under this agreement as set forth in Section 7. In addition, the foregoing abandonment of claims may be rescinded by either party if a court of competent jurisdicti n, in a final judgment, invalidates either the Permit or this agreement, �jrovided that before such rescission becomes effective Coastland shall ret to the County any payments made under subsection 9(a) of this agreem and the County shall reconvey to Coastland any easement rights conve ursuant to subsections 2(a)(2) and 2(e) of this agreement. Section 13. Obligati •to Run with the Land. It is Coastland`s in tion that the obligations undertaken by Coastland with respect to th 678 acre tract described in Exhibit A shall run with the land and shall be(inding on successors or assigns who acquire any portion of this property � undeveloped acreage. Coastland further, understands and acknowledges th this settlement agreement as well as the Permit shall be recorded and intend that any such purchaser of undeveloped acreage shall, as a condition of spurchase, be bound by all applicable terms of this agreement and the Perne. Section 14. Agreement Not for Beo 't of Third Parties. This agreement is solely for the bfit of the parties to it, and no person or entity other than one of the paOtHes hereto shall seek to enforce the agreement against a party or claimy benefit from either party arising out of the provisions of this ag �ent unless such person is a O Q Y�OVx� �. BOOK 2 3 U PAGE 614 i5 CZ N s'ccessor to the rights and obligations of such party or, by contractual 4r ement, such person or entity is acting on behalf of such party. By way ofrillustration without limitation, no person or entity other than Coastland or its successors or assigns who acquire undeveloped acreage may seek or otherwise benefit from any commitment made by the County in tSenforce agreement concerning the manner in which water and sewer services are e provided or fees and charges levied to finance such services. 15. Effect of Incorporation. The pa es agree that, if the portion of the Outer Banks where Ocean Sands is io d should be included in any municipal corporation created on the Curritucir%ter Banks, all rights under this agreement and the Permit shall be regard as vested and may not, without Coastland's consent, be adversely affe ed by any zoning or subdivision ordinance or other decision adopted by such newly incorporated municipality. The County agrees to attempt to have a provision incorporating the substance of this section included in any spec al legislation passed by the General Assembly that incorporates such m ipality. Section 16. Arbii+f ion. Notwithstanding thatC ine terms of this Settlement Agreement are to be incorporated in and may "'INnforced pursuant to a Consent Judgment to be filed in the state suit, 'parties agree that on notice given by either of them, any controversy h after arising between them relating to this agreement (except a claim b ;44astland based upon an alleged breach by the County of the covenant contVTned in Section 17) or to the failure or refusal to perform the whole 0 any part thereof, shall be submitted to arbitration under the terms of t Uniform Arbitration Act, G.S. § 1-567.1, et seq. Notice of intent to a bitrate given by one party to the other sfia�Tll be effective if in writing a delivered to the other, or mailed to the other, at the address stated the signature page hereto, within a reasonable time after such party beQmes aware of the existence of such controversy. Such notice shall not b" nsidered untimely solely by reason of its having been delivered or maileej by either party) within the time for filing of answer to a complaint f i p4, wherei n some part or all of the same controversy is asserted as grounds fW. a civil action. Any such civil action shall be stayed pending arbitrat' which is timely invoked by either party, unless on motion of the other Ar y the Court shall otherwise order for reasons it finds compelling. l Section 17. Covenant of Validity. The County covenants that it has complied with all statutory requirements to ensure that this agreement ia valid and binding obligation upon it and that it has received the itten opinion of its counsel, Michael 8. Brough, to that effect. O 0 implement the foregoing agreement. `A\ Section 19. Notice. �• Notice to either party shall be effective if mailed to the address set forth in the introductory paragraph to this agreement. 0 YI* V �AASTLAND CORPORATION amei o nson,�resen Attu. : ,7cpr:�• ��� f•• A BOOK 2.1 A PAGE 616 17 OCEAN SANDS, INC. �v By: ames nson, res Attest:. i Attest: &hj44,'_1jj. The undersigned James Johnson executes this agreement individually to acknowledge his obligations under Sections 2(c) and 2(d) as well as his obligation to execut_q the Answer set forth as Exhibit E3 and the Consent Judgment attached axhibit F. `A, ramae` s Johnson - r��I V 'N vkl SEAL -STAMP NUlrxi IKSAXpl>y NXIMAXIS STATE OF VIRGINIA. COUNTY OFT44-CESS ANNE I, a N tart' Public of the�unty and State aforesaid, certify that * �14zd - h , personally came before me this day and ac now a ge a s e s Secretary of COASTLAND CORPORATION, a North Carolina corporation, an ly authority duly given and as the act of the corporation, the foregoing ir@rument was signed in its name by its President, sealed wj�q its corporate seal and attested by its cretary. Witness my hand and OTTICIal stamp or seal, this ay lg 2. NOTARY PUBLIC My comnission expires: STATE OF NORTH CAROLINA COUNTY OF CURRITUCK I, a notary public of the county and state aforesaip ertffy that -Eileen M. Wirth personally appeared before me this day and acledgec:th�� s31e►-is clerk to the Board of Commissioners and that the foregoi�koe7ot as 'i*g'gpd by Frances Walker and attested by Eileen M. Wirth as cler �T a t'�dr9 the official action of the Board in issuin the permit on NOTAR PUBLIC '�,• My commission expires 9-29-90. ......... f- �f �X V i, a, notary ruoirc or the country ana aLaLe 6TUrC5410, cer�cr,,f r.na6 O f�, ��, I/Y�; ke h , personally came before me this day and act obi MUMwleedged 'UM Is — Secretary of OCEAN SANDS. INC., a North Carolina corporation, and that Vy authority duly given and as the act of \A the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporatg seal and attested by as its Secretary. Witness my hand and c a' stamp or seal, this_ ay o 19 ram. My comP.4ion expires: /t%/990 The `fY oing instrument the Local*rnment Budget r a E �O NORTH CAROLINA, CURRITUCK COUifN certificates) of has been pre -audited in the manner required by and Fiscal Control Act: n Y-Finance Ufflctr `, is (are) certified to be correct. This Instrument was presented for ie • tration at_PdAo'dock �. rr�� 19_0 1, and recorded in Book _1 Page_. �Re 'garlofed3 Q gy Y Deputy Resister of Deeds