20180704 Ver 1_UMBI comments from S&EC_20180522

Strickland, Bev
From: Patrick Smith <[e-mail]>
Sent: Tuesday, May 22, 2018 12:22 PM
To: Merritt, Katie
Subject: [External] RE: City of Raleigh Neuse UMBI - DRAFT Version
Attachments: DRAFT City of Raleigh Neuse River Basin UMBI - 05-15-2018 w PKS Track Changes.pdf
Katie,
It's been submitted. Sorry it took an extra couple of days. I've been traveling.
It asks for the uploaded document to be in .pdf format so that's what I included (copy
attached) but you already have the MS Word document from my email on the 161H
Best,
Patrick
PATRICK K. SMITH, PE, LEED®AP
Design Department Manager
Soil & Environmental Consultants, PA
North Quarter Office Park
8412 Falls of Neuse Road, Suite 104
Raleigh, NC 27615
Office [phone]
Direct [phone]
Mobile [phone]
[e-mail]
Visit us at sandec.com
This electronic communication, including all attachments, is intended only for the named addressee (s) and may contain confidential information. This electronic
communication may not have passed through our standard review/quality control process. Design data and recommendations included herein are provided as a matter of
convenience and should not be used for final design. Rely only on final, hardcopy materials bearing the consultant's original signature and seal. If you are not the named
addressee (s), any use, dissemination, distribution or copying of this communication is prohibited. If you have received this electronic communication in error, please notify
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NA Please consider the environment before printing this email.
From: Patrick Smith
Sent: Wednesday, May 16, 2018 8:21 AM
To: Merritt, Katie ([e-mail])
Subject: City of Raleigh Neuse UMBI - DRAFT Version

Katie,
Hey attached is a first DRAFT of the edited UMBI for the City of Raleigh per our recent
discussions. Edits are in Track Changes.
So you're aware I had one of our folks (Betsy Baker our receptionist) take the MSWord
document you provided (from the RES Neuse UMBI) and then compare it to the on-line
(signed) .pdf version of the same document. She then updated the document to reflect the
changes shown in the .pdf. I used this as the basis for my edits. This is the reason you'll see
two sets of edits.
Also at the top of the first page I've added some general comments so you understand some
of the outstanding questions that I've got. Obviously much of the document remains the same
however I've removed the buffer components as the City's intent is to focus on the
development of Nutrient Offset credits to address future nitrogen allocation overages
associated with wastewater discharges (and their permit).
Anyway, hopefully it's a good start. I'm happy to find a time to talk or find a time to meet if it
will make your review easier.
Thanks again for your help on this and your patience on the various questions in recent weeks.
Best,
Patrick
PATRICK K. SMITH, PE, LEED®AP
Design Department Manager
Soil & Environmental Consultants, PA
North Quarter Office Park
8412 Falls of Neuse Road, Suite 104
Raleigh, NC 27615
Office [phone]
Direct [phone]
Mobile [phone]
[e-mail]
Visit us at sandec.com
This electronic communication, including all attachments, is intended only for the named addressee (s) and may contain confidential information. This electronic
communication may not have passed through our standard review/quality control process. Design data and recommendations included herein are provided as a matter of
convenience and should not be used for final design. Rely only on final, hardcopy materials bearing the consultant's original signature and seal. If you are not the named
addressee (s), any use, dissemination, distribution or copying of this communication is prohibited. If you have received this electronic communication in error, please notify
the sender by return e-mail and delete the original communication from your system. Thank you.
APlease consider the environment before printing this email.

I GREEMENTL O ESTABLISH THE R SCITY OF RALEIGH NEUSE UMBRELLA_
MITIGATION BANKING INSTRUMENT IN THE NEUSE RIVER BASIN FOR
RIPARIAN BUFFE NUTRIENT OFFSET MITIGATION CREDITS PURSUANT
TO THE NEUSE NUTRIENT MANAGEMENT STRATEGY
TABLE OF CONTENTS
I.
PREAMBLE............................................................................................................................2
II.
LOCATION AND GEOGRAPHIC SERVICE AREA .......................................................
2
III.
AUTHORITIES...................................................................................................................
3
IV.
ESTABLISHMENT OF RES NEUSE UMBRELLA BANK PARCELS ..........................
3
V.
BANK PARCEL DEVELOPMENT PACKAGE FOR EACH BANK PARCEL
.............. 5
VI.
POST CONSTRUCTION DOCUMENTATION FOR EACH BANK PARCEL
.............. 7
VII.
CALCULATION OF MITIGATION CREDITS............................................................
109
VIII. CREDIT RELEASE SCHEDULE.................................................................................
12
IX.
PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
........ 134-2
X.
BANK PARCEL CLOSURE.............................................................................................
15
XI.
GENERAL PROVISIONS................................................................................................
15
ATTACHMENTS
A —
Division of Water Resources Authority Document
B —
Rule Text 15A NCAC 02B .0240 (Effective August 1, 1998)
C —
Rule Text 15A NCAC 02B .0295 (Effective November 1, 2015)
ED — Nutrient Offset Ledger Template
1
Comment [PS1]:
1. At this point in time I have no indication that
the City of Raleigh has any interest in Buffer
Mitigation Credit and as such have edited it such
that it only applies to the development of Nutrient
Offset Credits. I've edited it accordingly. Of
course this could change but at this point I don't
suspect it will.
2. Does this instrument have to describe specific
bank parcels or could in just establish the City's
ability to develop bank parcels down the road
after the UMBI is set up.
3. It would seem it would be preferable to set up
the Instrument and then be able to add sites under
the bank as sites are identified and BPDP's are
approved for inclusion in the Umbrella Bank. I
realize this may be contrary to previous UMBI's
but this bank is not intended to be used by the
City in the same fashion nor the same purpose as
banks developed by mitigation bankers.....
4. One big question is exactly how will the use of
credits (annual recurring use of developed credits
in perpetuity) be documented. It could be
incorporated into this UMBI but it would seem
more logical to describe how a nutrient credit is
"debited" against the bank ledger in a separate a
procedural document. The UMBI lays out what's
required to generate a credit. This other document
would basically describe the City's specific ledger
process.
Comment [PS2]: Table of Contents will need to
be updated but this can wait.

I. PREAMBLE
This R-1-SCity of Raleigh Neuse Umbrella Mitigation Banking Instrument ("Instrument")
regarding the establishment, use, operation, and maintenance of four (4)an unspecified
number of Nutrient Offset Bank Parcels, �ncludin those hose identified in
Section IIJs toprovide Neuse R; .arian Buffer- nu
;«;,atter ,.,.edit Credit »�
arid—Neuse Nutrient Strategy nutrient load reduction credit ("Nutrient Offset Credits") is
made and entered into by and among EBV i.Tetts,, r r r rthe City of Raleigh, North Carolina
acting as the Bank Sponsor ("Sponsor"), and the North Carolina Department of
Environmental Quality — Division of Water Resources ("DWR"). This Instrument is in
accordance with 15A NCAC 02B .0240 and the Consolidated Mitigation Rule 15A NCAC
02B .0295, which became effective on November 1, 2015 (Attachments B and C). This
instrument is for man unspecified number of bank sites, Hannah Bridge
which the Sponsor intends to develop in the
future.
The purpose of these and future Bank Parcels is:
A. To restoreand riparian vegetation adjacent to streams and/or
agricultural ditches with the intent to improve water quality within the entire Upper-
Neuse
pperNeuse River Basin (86 -digit HUC 0302020, excluding the Falls Lake Watershed.
B. To convert agricultural land uses within riparian areas adjacent to streams and/or
agricultural ditches into a dense, hardwood vegetated state with the intent to significantly
reduce nutrient loadings associated with agricultural practices into streams and ditches.
C. To provide mitigation in the form of
Nutrient Offset Credits for the Sponsor in the Neuse River Basin, to offset
Sponsor nutrient allocation overages associated with the Sponsor's waste water permit
nutrient allocations. for- development (both existing and proposed) requiring
raitiga4ierr
I1. LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can
reasonably be expected to utilize Nutrient Offset
Credits nutrient allocation overages associated with wastewater nutrient allocations.€ef
impaets due t.. development ae fiyities.
B. The GSA for this instrument is limited to the entire Upper Neuse River Basin in the State
of North Carolina, United States Geological Survey ("USGS") 69 -digit Hydrologic Unit
Code ("HUC") 03020204-, excluding the Falls Lake Watershed.
Comment [P53]: This would apply if we were to
include one or more parcels in the UMBI document
but there still needs to be a mechanism to add bank
parcels to the Umbrella Bank down the road.

IAC. Utilization Cale en t wisf r of Nutrient Offset Credits shall be limited to Upper -Neuse
River Basin (86 -digit HUC 03020290 excluding the Falls Lake Watershed in accordance
with 15A NCAC 02B .0240.
E D. he following_ table provides site-specific details of each of the four Bank Parcels
proposed under this Instrument, all are within the Upper -Neuse River Basin (86 -digit
HUC 0302029);
Table 1.0 - Site-specific Details
Bank Parcel
Name
County
14 -Digit USGS
Hydrologic Unit
Code
Project
Location
Named
Receiving
Stream
Primary Land
Use/s
14afmah Bridge
johnste
03020»01l5002n
zc �Q�Tmc
-7$:4479W
Hamah Gfee1£Catfle
pasture
Meade
SP -9
i0hfiStE)
020201100050-
35.5437,
78-.3303
Neuse D:.,e«
Wfe «,.t r est
'_1-^^.
jehfisten
03020201440010
35476199
79.312849
_ ..1 f r
Stone Crook
jA on^t^n
03020201150040
.T
349684,
;9-.3393-52
Mill Crook
Cattle pastwe
Few-eroff
IILAUTHORITIES
A. The Bank will be used to provide Nutrient Offset Credit in
accordance with the requirements in the DWR Authority document referenced herein as
"Attachment A" and attached to this Instrument.
B. Projects eligible for utilization of the credits are those requiring authorization under the
requirements of Attachment A and any new approved North Carolina ("State") statutes
and rules for the Neuse Nutrient Sensitive Waters Management Strategy.
and fules for- the Neuse Ntttrient Sensitive Waler-s Management Stfateg�-.
IAC. Mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Packages (BPDP) to generate Nutrient Offset
Credits shall be consistent with North Carolina ("State") statutes and rules for the Neuse
Nutrient Sensitive Waters Management Strategy that are in place at the time a complete
BPDP is submitted to DWR.
IV. ESTABLISHMENT OF BANK PARCELS
Comment [PS4]: Same goes here. This would
apply if we were to include one or more parcels in
the UMBI document but there still needs to be a
mechanism to add bank parcels to the Umbrella
Bank down the road.

A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0240, DWR willhas If
appropriate provided a "Site Viability Letter" for future e Bank Parcels
proposed under this Instrument. AT -he site viability letter is not an approval of the site to
generate mitigation credits, but is a preliminary review of the Bank Parcel that details and
confirms existing land -use conditions, defines the riparian zone sites (Enhancement,
Preservation, or Restoration), and identifies features (streams, ditches, ponds, etc.) that
meet general criteria to be suitable to generate mitigation credits. Table 2.0 below
outlines when a Site Viability Letter was issued by NCDWR for the mitigation sites
proposed under this Instrument:
Table 2.0 — Site Viability Letter Details
Viability Letter
Bank Parcel NC DWR Site Visit
Viability Letts
Ex iration Date
P
Received
14-n—n4i—ah Bridge May- ", (W
May 13!d—,204-7
MenMendoiv Spfingn .owe 1 ei e b
T.r .. z e n
T. evens e.. 4"', 2018
D..l ....tSeptember an 2y
n,..o o. i o �
n, tObO. i 9b, -28
Stone r re& Proposed fo
T� eyem .e« 13"',
�B
�B
B. A valid Site Viability Letter is required prior to submittal of each BPDP. Site Viability
Letters will either expire upon the submittal of a BPDP to the DWR or on the dates listed
in the table above, whichever comes first. If a Site Viability Letter expires prior to
submittal of a complete BPDP as described in Section V to DWR, then the Sponsor must
submit a formal request to DWR for a new Site Viability Letter for that Bank Parcel.
C. The Bank Parcels proposed for inclusion under this Instrument shall require a Bank
Parcel Development Package ("BPDP") be submitted to, and approved by, the DWR
prior to use of the individual Bank Parcel for mitigation pt"eses of for- any sale e
The contents of the BPDP are provided in Section V.
L D. Each BPDP submitted under this instrument will be placed on public notice and made
available for public commenting for 15 calendar days.
4
Comment [PS5]: Same goes here. This would
apply if we were to include one or more parcels in
the UMBI.

buff,er-s as they afe defined in 1 SA NGAC 02B .023
, and othef fipafian afeas allowedtff
15A NCAC 02B .0295 (n) and (e) on the Bank Pafeel. Ripafian Buff-er- Credits afe enly
least 20 feet from top of bank.
G. The Bank Pafeels are in4ended to provide Neuse Riparian Buffer- mitigation as followsi
2. Pr-eseFvatiefi of biiff-er-s oft fien stibjeet streams per- 15A NCAG 02B .0295 (0)(7)
and t 5 n NCAC C 02B 0295 i..W
4. Enhaneing riparian areas that are being grazed by eattle by pefManently exeluding
ISE. Nutrient Offset Credit may be achieved on these Bank Parcels through restoration or
enhancement of the riparian areas, where agriculture is the predominant land use. The
width of the restoration area begins at the most landward limit of the top of bank or the
rooted herbaceous vegetation and extends landward a minimum of 50' and a maximum of
200 feet on all sides of the surface waters.
1=F. The Bank Parcels are expected to provide Nutrient Offsets in accordance with 15A
NCAC 02B .0240 and are expected to provide Nutrient Offset Credit as follows as
follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land
uses.
2.
3-.2.Planting hardwood trees or trees and shrubs on a Restoration Site as defined in
15A NCAC 02B .0295 (b) adjacent to streams and primary ditches where
agriculture has been determined to be the predominant land-use.
f:E-----�All few of the Bank Parcels submitted for review under this Instrument are
anticipated to begin construction of proposed riparian area restoration st fe..m and wet �a
mitiga4iai+-activities In Q-;__ "W8.1 Comment [PS6]: Same goes here. This would
apply if we were to include one or more parcels in
the UMBI.
V. BANK PARCEL DEVELOPMENT PACKAGE
A. All Bank Parcel Development Packages (BPDP) submitted under this Instrument shall be
submitted to DWR for review and must be approved by DWR prior to any construction
on the Bank Parcel. The BPDP must describe any changes that have occurred to the site
between the date of the Site Viability Letter and the date the BPDP is submitted to DWR.

The BPDP shall include detailed information consistent with the sections below
concerning; 1) site location (8 -digit HUC is required); 2) existing conditions with current
photos; 3) proposed nutrient offset activities including a detailed
vegetation plan; 4) monitoring and maintenance plans; 5) financial assurances; 6)
associated nutrient credit calculations, which shall include credit
generation—,&eFv+e -aFea-, and accounting as appropriate ; -7}
stream buffer deteffaination lettef froT""�nd 97and 7 Site Viability Letter from
DWR,; ; aiid 10)
B. The Sponsor will obtain all applicable federal, state, and local documentation, permits, or
authorizations needed to construct and maintain the Bank Parcel. This Instrument does
not qualify as, or substitute for, such documentation, permit, or authorization.
C. The Any restoration, or enhancement activites or proposed construction within the and
pfesefvatien-ef-riparian buffers and other riparian areas on the Bank Parcels to produce
Nutrient Offset Credit must be approved by DWR in writing
prior to implementation. The failure of the Sponsor to comply with this requirement may
result in a revised or reduced credit release schedule for that specific mitigation site. All
restoration and enhancement activities must be performed in concurrence with any stream or
wetland mitigation activities and not before.
D. Requests for deviation from the approved BPDP must be submitted to DWR in writing.
Written approval from the DWR must be received prior to implementing any deviation
from the approved BPDP.
Property Disposition & Long Term Management for Each Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record permanent conservation
easements at the County Register of Deed's office in the county in which the Bank Parcel
is located that is sufficient to ensure protection, operation and maintenance of restored
riparian buffers and other riparian areas for the duration specified in the approved BPDP.
F. The form of the conservation easement shall be consistent with the standards employed
by the State of North Carolina in the protection of restored riparian buffers and riparian
areas and shall be approved by the DWR prior to
the release of any credits.
G. The Sponsor shall not grant additional easements, right of ways, or any other property
interest in or to the project areas, without prior approval from the DWR.
H. The Sponsor agrees to transfer or assign the conservation easement and its interests in
perpetuity to a qualified holder under NC General Statute ("GS") 121-34 et seq. and
170(h) of the Internal Revenue Code prior to the submittal of the Year 4 Monitoring
Report. _The holder shall be a land trust or stewardship program that will hold and
enforce the conservation easement and the interests in perpetuity. The Sponsor shall
choose a land trust or stewardship program that is accredited by the Land Trust

Accreditation Commission and/or has been approved by DWR prior to the end of the
fourth year monitoring period. A land trust must be certified under 501(c)(3) of the
Internal Revenue Code.
I. In the event the Sponsor is also the owner of the underlying fee interest in the property,
the conveyance of the conservation easement to a land trust or stewardship fund must be
arranged at the outset of the approved BPDP.
Financial Assurances for Each Bank Parcel
J. Following approval of the BPDP for each Bank Parcel, the Sponsor shall provide
Performance/Maintenance Bonds from a surety company that is rated no less than an "A-
" as rated by A.M. Best, to construct the sites according to the approved BPDPs. It is the
Sponsor's responsibility to confirm that the surety company is rated no less than an "A-"
with each annual bond renewal.
K. The amount of each Performance Bond shall be 100% of the estimated cost for
implementation of the mitigation activities of the Bank Parcel as described in the
approved BPDP. No bond shall be less than $150,000.00 to cover construction costs.
L. Alternatively, in lieu of posting Performance Bonds, the Sponsor may elect to construct
the projects prior to the first credit releases.
M. For each Bank Parcel, once DWR has released all credits for completion of all the items
listed below, then the Bank Sponsor will be released from its performance obligations
under the performance bond required in Item J and K of this section:
1. Instrument and BPDP Approved by DWR, Conservation Easement Recorded,
Financial Assurance Posted;
2. Mitigation Site Earthwork and Planting and Installation of Monitoring Devices
Completed;
3. As -Built Report as described in Section VI has been received by DWR; and
4. DWR has submitted a written approval of the As -Built Report
N. To comply with this section, DWR must be the Obligee on all performance bonds.
VI. POST CONSTRUCTION DOCUMENTATION FOR EACH BANK PARCEL
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of
this Instrument and corresponding BPDP, to establish, maintain, and monitor Neuse
Riparian Buffers or other riparian areas until Item B (1) and (2) of Section X have been
satisfied.
Comment [PS7]: As these nutrient credits are
intended to be utilized on an annual basis in
perpetuity couldn't the City (as a public entity) just
establish a Conservation Easement and maintain it
themselves?

B. When all nutrient offset s4 fe .... and wetiand mitigation activities have been completed
wed, the Sponsor will submit an as -built plan and report for the Bank Parcel
within 30 calendar days after completing the establishment of the b nutrient
offset mitigation areas. The as -built report will describe any deviation from the approved
BPDP and will document the following:
1. Buffer restoration and planting details, invasive species control, confirmation of
fence installation, cattle exclusions, monitoring device locations, vegetation plot
locations, and photo point locations, as
appropriate.
3:2Boundary Survey of the conservation easement area, signed and sealed by a
licensed surveyor, including an inventory of the final mitigation areas for
buf€e�nutrient offset mitigation credits in both square feet and acres.
4.3.As-built map of the mitigation area showing where riparian restoration and
enhancement was performed and any deviations to the Bank
Parcel from what was approved in the BPDP.
6-.4.Aerial map of the mitigation area that was included in the approved BPDP.
Financial Assurance for each Bank Parcel
C. After completion of the restoration/construction on each Bank Parcel a separate
Performance/Maintenance Bond will be secured for 100% of the estimated cost to
implement the monitoring and maintenance plan as described in the approved BPDP and
As -Built Report for each site. The Bond must be from a surety company that is rated no
less than an "A-" as rated by A.M. Best, and it is the Sponsor's responsibility to confirm
that the surety company is rated no less than an "A-" with annual bond renewal.
D. A Performance/Maintenance Bond shall be secured each year for a minimum of five
years, and until DWR has released all mitigation credits to the Bank Sponsor. Upon
DWR approval, the bond may be lowered each year based on the adjusted cost to
complete the monitoring. No bond shall be less than $100,000 to cover monitoring and
maintenance costs.
E. For each Bank Parcel, once DWR has released 100% of all credits for completion of all
Bank Parcel milestones described in Table 3 of Section VIII and in the corresponding
BPDP, the Bank Sponsor will be released from its performance obligations under the
performance bond required in "C -D" of this Section.

F. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring and Maintenance Reports
G. The Sponsor shall monitor the Bank Parcel as described in the BPDP until such time as
DWR determines that the performance standards described below have been met. The
monitoring period shall be a minimum of five consecutive years.
H. Performance Standards for Vegetation: Native hardwood trees or native hardwood tree
and shrub species should be planted at a density sufficient to provide 260 stems per acre
after five years. A minimum of four (4) native hardwood trees or four (4) native
hardwood tree and shrub species must be planted. No one species shall be greater than
50% of the planted stems. A list of species for planting will be detailed in the BPDP for
approval. Native hardwood tree volunteer species may be included to meet performance
standards as determined by the DWR.
I. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in
height.
J. If the performance standards of the vegetation are not met, supplemental plantings may
be required. Supplemental plantings will be utilized until the required densities have
been achieved and maintained for five years. Bank Parcel maintenance, such as ensuring
diffuse flow, managing invasive species, and pest control will be included in the BPDP.
K. Monitoring Reports for Nutrient Offset Credit: Reporting
criteria of the vegetation shall be based on the Carolina Vegetation Survey (CVS) — EEP
Protocol for Recording Vegetation Level 2 Plot Sampling only version 4.0 or any updated
versions of this protocol in place at the date of acceptance of the BPDP. The Sponsor
shall submit to the DWR an annual monitoring report no later than December 31 of each
year for a minimum of five consecutive years after the first full growing season. This
report will describe the conditions of each Bank Parcel, including an evaluation of the
performance standards of the vegetation contained within the approved BPDP. Reports
shall contain the following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative with supporting photos summarizing the condition of the
Bank Parcel along with any maintenance or remediation performed that year; and
3. A map, survey, or other figure showing locations of sampling plots, permanent
photo points, location of transects, etc.; and
4. Monitoring data, including specific vegetative counts showing that the trees or
tree and shrub species planted are meeting performance standards and updated
photographs; and
5. A copy of the most recent Bank credit/debit ledgers; and
request; an

8-.6.Proof of performance bond renewal to cover the next monitoring year (if
applicable)
Contingency Plans/Remedial Actions
L. In the event the Bank Parcel fails to achieve the performance criteria described in this
Instrument and the approved BPDP, the Bank Sponsor shall develop necessary
contingency plans in coordination with the DWR and implement appropriate remedial
actions for the Bank Parcel and the Bank. Depending on the degree of remedial actions
required, the DWR may modify the monitoring period.
VII. CALCULATION OF MITIGATION CREDITS FOR EACH BANK PARCEL
B . Ripafian buffer- r-estefation on the Bank Par -eels, as deser-ibed in 15A NCAC 02B .0295
ire 1 c n NCAG r mu .0295(e)(3), 1 c n NCAG r mu 0295 (e)(7) and defined i 15 n
NCAC 02B .0295 (b), ffi&y be used fef either Ripafian Buffef Cfedi 141-14ient 04-Tset
r, edit i to ffet bedf.
(e)(6) and 15A NCAG 02B .0295 (e)(7) ean only be used fef Ripafian Buffer- Credit.
NCAC 02B .0295 (b), ean enly be used fef only RipafiEffi Buffef .
E. n;.....ian Bu ffe Credit is defined , e (1) b ffef e -edit pe one squafe feet of 43 c -n
bt fF efedits
F. Pufsttefflt te 15A NCAC 02B .0295 ,
.nomapproval of the Hannah Bridge Stream and Wedand Mitigation Bank and Meadow SpringStfeam and Wetland Mitigation Bank, and afe present within the top of the stfeam bRipafiaa Buffef Credit or- Wetland Mitigation Credit, btA not beth. PeFfOffflaneesta-adar-ds ffmst eemply with those ift 15A NGAG 02B .0295 to be approved for- bumitigation er-edit.
10

Nutrient Offset Credits
A. The acreage of Nutrient Offset Credits on all future €ems (4�Bank Parcels submitted
under this Instrument is determined by applying the applicable ratio as provided in 15A
NCAC O2B .0295 (m) for a Restoration Site. All riparian areas proposed for Nutrient
Offset Credits must be a minimum of fifty (50) feet from the top of the stream bank.
B. Nutrient Offset Credits cannot be achieved through the enhancement or preservation
activities performed on this -Bank Parcels.
C. Nutrient Abatement of Restored Riparian Area/Buffers: The Sponsor and DWR agree to
the following:
1. The pounds of nitrogen offset per acre of restored riparian areas/buffers shall be
2,273.02 pounds per acre.
D_The Sponsor and DWR agree that the amount of Nutrient Offset Credit per acre
associated with restoration of riparian areas; and buffers on this -Bank Parcels, shall be
fixed as part of the approval of this Instrument and each corresponding BPDP, with the
fixed amount not changing during the development or credit release schedule for the
Bank Parcel unless the viability letter for that Bank Parcel has expired.
D -.E. The Sponsor and DWR agree the methodology and calculations for determining
nitrogen reduction, associated with restoration and enhancement of riparian areas as
described in Section IV of this Instrument shall be fixed as part of the approval of this
Instrument, with the fixed amount not changing during the Bank Parcel Development or
credit release schedule for each Bank Parcel unless the viability letter for that Bank
Parcel has expired.
This space left blank intentionally, do not add text to this space.
11
--F.,-.tt.d.Indft Left: 0.5", No bullets or
numbering

VIII. CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent
approval by DWR, it is agreed that the mitigation credits associated with each individual
Bank Parcel will become available for use by the Sponsor sale to a third pafty in
accordance with the following Credit Release Schedules.
B. A Credit Release Schedule shall be provided in each site-specific BPDP included in this
Instrument and shall outline Bank Parcel milestones expected to be completed for each
mitigation bank. Credit Release Schedules approved in the BPDP will be based on the
completion of these Bank Parcel milestones.
t
C. In general, Bank Parcel milestones and the percentage of credits most often released upon
completion are described in Table 5.0 below:
Table 3.0 - Credit Release Schedule for Nutrient Offset Credits
Task
Project Milestone
% Credit
Available for
Sale
1
Instrument and BPDP Approved by DWR, Conservation Easement
Recorded* and Financial Assurance Posted
20
2
Mitigation Site Earthwork, Planting and Installation of Monitoring Devices
Completed
20
3
Monitoring Financial Assurance Posted and Approval of As -Built Report
10
4
Monitoring Report #1: Approved by the DWR**
10
5
Monitoring Report #2: Approved by the DWR**
10
6
Monitoring Report #3: Approved by the DWR**
10
7
Item B (1) of Section X in this Instrument has been completed and
approved by DWR.
5
No remaining credits will be released until the conservation easement has
been assigned to an approved land trust or stewardship
8
Monitoring Report #4: Approved by the DWR**
5
9
Monitoring Report #5: Approved by the DWR** and final site visit by
DWR has been conducted
10
Total
100%
* For specification, please see Section V in this Instrument
** DWR Approval provided upon a determination that the site is meeting success criteria contained within
the approved BPDP
D. DWR may modify the credit release schedule based on the information submitted or the
order in which required information is received. DWR will notify the Sponsor of any
modification to the credit release schedule.
E. DWR may consider a Credit Release Schedule for a Bank Parcel based on the extent of
change between current onsite conditions and proposed post construction conditions.
12
Formatted: I.de, t: Left: 0.5", No bullets or
numbering
Formatted: Indent: Left: 0.5", No bullets or
numbering

IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
Credit Ledgers
A. The Bank Sponsor shall maintain a credit ledger for each Bank
Parcel under this Instrument: Credit ledgers shall provide the accounting for lir€fe>
Nutrient Offset Credits in pounds and
acres.
B. Each credit ledger shall be submitted on a separate 8 'h -in X 11 -in spreadsheet with
legible font style and font size. All ledgers shall be submitted using the templates
provided in Attachments D and E of this Instrument or any updated versions to these
templates as provided by DWR.
Credit Processing
D -.C. Nutrient Offset Credits generated on these Bank Parcels will be used to offset City of
Raleigh nutrient allocation overages leads-
nutrient
e nutrient allocations within the 03020201 Hi rt e the Neuse River Basin(HUC 030202),
excluding Falls Lake Watershed, in accordance with I15A NCAC 02B .0240
13
Comment 1PS8]: This does not appear to apply.
It would seem this would better reference the waste
water section.

All credit and debit transactions for each Bank Parcel under this Instrument shall be
accurately depicted in the credit ledgers. The Bank Sponsor shall provide DWR up-to-
date credit ledgers for each Bank Parcel by the JanuM 31," of each calendar year. tent4
ate g oagh nt-he er-y .i.*ty M) ealendar- days
DWR shall ,ee a hard eopy of updated er-edit led er-s along with the eofFesponding
e--1eonee a year, Netifie4iei °
A! er-edit sales shall be pr-evided to DlAq?� until all er-edits that have been released havee
been solo
L -.D. After Bank Parcel Closure has commenced, which is described in Section X, the
Bank Sponsor will be unable to add mitigation credits to the City of Raleigh RE -S -Neuse
Nutrient Offset -and -Buffer -Umbrella Mitigation Bank.
14
Formatted: Superscript
Formatted: Superscript
Formatted: Clause

FBF. If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is
utilizing credits that areis not available), or the Bank
is bout of compliance with statutes, rules or this Agreement, the use
sate4ran of credits will immediately cease, and the DWR, in consultation with the
Sponsor, will determine what remedial actions are necessary.
X. (BANK PARCEL CLOSURE
A. Bank Parcel Closure shall be identified as the event when the Sponsor is relieved of all of
its responsibilities to the Bank Parcel and there are no mitigation credits left to sell.
B. Bank Parcel Closure shall commence only after all of the following events have occurred:
1. Transfer or assign the conservation easement and all of its interests, in perpetuity,
to a land trust or stewardship program as described in Section V of this
Instrument.
2. All five years of monitoring completed and all monitoring reports submitted and
approved by DWR.
3. All credits have been released and debited and updated ledgers showing zero
credit balances have been submitted and approved by DWR.I
XI. GENERAL PROVISIONS FOR EACH BANK PARCEL
15
Comment [PS9I: It would seem that this section
is no necessary as the intent would be to maintain the
bank parcels and their recurring annual credit in
perpetuity.

A. Upon the presentation of proper credentials, and during normal business hours, the
Sponsor and the landowner shall grant permission to the Director of DWR, an authorized
representative of the Director of DWR, to enter the property containing the Bank
Parcel(s).
B—Amendments: This Banking Instrument may be amended or modified only with written
approval of all signatory parties.4peluding 4he- USAGE if it is , plieatien te, he,
ameadmei4-.
C. Any transfer of the Sponsor's rights or obligations outlined in this Instrument or any
other agreement referenced in this Instrument to a third party must be approved by DWR
prior to the transfer.
D. Force Majeure: After 100% of all of the credits have been released according to the credit
release schedule in the BPDP and confirmation has been received by the DWR that the
(Conservation Easement has been successfully assigned in compliance with Item H of
Section VL, the Sponsor will not be responsible for Bank failure that is attributed to natural Comment [PS10I: See previous notes regarding
catastrophes including but not limited to flood, drought, disease, regional pest infestation, Item x of Section V.
etc. that are beyond the control of the Sponsor.
E. However, if an event occurs before 100% of all of the credits have been released according to
the credit release schedule in Section VIII, the Sponsor shall take remedial action to restore
the property to its condition prior to the event, in a manner sufficient to provide adequate
mitigation to cover credits that were sold prior to the occurrence of the event. Such
remedial action shall be taken by the Sponsor only to the extent necessary and
appropriate, as determined by DWR and the Sponsor.
DWR must concur in writing that a force majeure event has occurred for this provision to apply.
Oversight: Actions taken by DWR may include, but are not limited to, the following:
1. Site visits,
2. Issuance of Site Viability Letters,
3. BPDP review and approval of items listed in Section V of this Instrument,
4. As -Built Report review and approval of items listed in Section VI of this
Instrument,
5. Monitoring Report review and approval of items listed in Section VI of this
Instrument,
6. Credit Ledger review and approval of items listed in Section IX of this
Instrument,
7. Certificate review of items listed in Section IX of this Instrument and cross
analysis to credit ledgers and,
8. Information requests, file reviews and audits
Reports, ledgers, files and other information shall be made available to DWR upon request,
unless otherwise specified in this or any other document.
16

G. Validity of the Banking Instrument: This Instrument will become valid on the date of the
last party's signature.
H. Specific Language of Banking Instrument Shall Be Controlling: To the extent that
specific language in this document changes, modifies, or deletes terms and conditions
contained in those documents that are incorporated into the Instrument by reference, and
that are not legally binding, the specific language within the Instrument shall be
controlling.
I. Any disputes over decisions regarding this Instrument, shall be referred to the Director of
DWR for a decision. The Director's decision is subject to review as provided in Articles
3 and 4 of G.S. 150B.
J. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
K. Notices: All notices and other communications which may be or are required to be given
or made by any party to the other shall be in writing and shall be deemed to have been
properly given and received on the date delivered in person or deposited in the United
States mail, registered or certified, return receipt requested, to the addresses set out
below, or at such other addresses as specified by written notice delivered in accordance
herewith.
If to Bank Sponsor: City of Raleigh North Carolina BBv Neuse r r r G
Attention: Mr. Daniel ingrain
302 jeffersoft Street Suite 110
Raleigh, North Carolina 27605
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset Banking Coordinator
1617 Mail Service Center
Raleigh, NC 27699-1617
L. Applicable Law: This Agreement shall be construed under the laws of the State of North
Carolina.
17

Reso i fee Environmental Solution LLC
rCity of Ralei,_hg NC
By:
(Print)
(Signature)
Title:
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF
WATER RESOURCES
By:
(Print)
(Signature)
Title:
Date:
18