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C. System Liabilities, <br /> 1) The utility contractor will be licensed by the N.C. Utilities <br /> Commission and by virtue'of the contractor's involvement with <br /> the system, the N.C. Utilities Commission will exercise exclu- <br /> sive control over the wastewater systems operation, management <br /> and regulatory policies. <br /> 2) The Homeowners Association, County or local health authorities <br /> will have no direct control of the system operator. If non- <br /> compliance with State, County or local water quality standards <br /> is suspected, the environmental authority having jurisdiction <br /> over the alleged violation would have to file actions with the <br /> N.C. Utilities Commission who, in turn, would direct the opera.- <br /> tor to take corrective actions. <br /> 3) The Utilities Commission requires that either the utility con- <br /> . tractor or wastewater facility owner post a $10,000 performance <br /> bond which is held by the Commission during the life of the <br /> utility contract. Should the facility fall into non-compliance <br /> while under the operation of the utility contractor, the bond <br /> may be used to bring the facilities into compliance in the <br /> event that the Homeowners Association fails to take immediate <br /> action. <br /> 4) The performance bond, which accrues interest at an annual per- <br /> centage rate, will be returned to the Homeowners Association <br /> whenever utility contracted services are terminated for an <br /> extended period. The bond may not be returned if the Home- • <br /> owners Association is changing utility contractor services. <br /> D. Operations Performance and Reports <br /> 1) The contract operator must be a N.C. Certified wastewater sys- <br /> tems operator with a demonstrated knowledge of low pressure <br /> wastewater disposal systems. <br /> 2) The contract operator will file periodic monitoring reports <br /> with all State, County and local agencies having jurisdictional <br /> authority over the project. <br /> E. Implementation of the Proposed Action <br /> 1) During the concept planning process the project developer would <br /> prepare a proposal for operation and maintenance. <br /> 2) A typical contract for services could also be presented for <br /> County review and approval. <br /> 3) During the design phase of the project, the Owner/Developer <br /> would negotiate the services of a utility contractor and draft <br /> all contracts for system operation and management. <br /> • <br /> •CRAIG B.MORGAN AND ASSOCIATES.P A. <br />