WQCS00146_Owner (Affiliation Change)_20240523

(414P--
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[phone]
P.O. Box 3729 C6''9HTERE0,R;b FAX: [phone]
Sanford, NC 27331-3729 Email: [e-mail]
Cnt i f anf iir? RECEIVED
Hal Hegwer
MAY 2 3 2024 City Manager
May 9, 2024 NCDEQ/DWR/NPDES
Re: Duplicate Documentation of Merger of Utility Systems of Town of Pittsboro and City of Sanford
Enclosed are the following items:
• Sewer System Permit Ownership/Name Change Form PNOCF01-16
• Minutes from August 1, 2023, City Council meeting approving the Resolution Approving Interlocal Agreement
to Merge the Water, Reclaimed Water, and Sewer Systems of the Town of Pittsboro and City of Sanford
• Resolution of the City Council of the City of Sanford, North Carolina, Approving Interlocal Agreement to Merge
the Water, Reclaimed Water, and Sewer Systems of the Town of Pittsboro and the City of Sanford, and Certain
Amendments to Agreements with Chatham Park Investors, LLC, Assumed Pursuant to the Merger
• Interlocal Agreement to Merge the Water, Reclaimed Water, and Sewer Systems of the town of Pittsboro and
City of Sanford
• Resolution of the Board of Commissioners of the Town of Pittsboro Approving an Interlocal Agreement to
Merge the Water, Reclaimed Water, and Sewer Systems of the Town of Pittsboro and the City of Sanford
• NC DEQ Permit for Pittsboro Collection System
PI-:se let us now if you need anything else.
Hal ' e
City anager

State of North Carolina
Department of Environmental Quality
D. Division of Water Resources
MLR
• SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
Division of Water Resources INSTRUCTIONS FOR FORM: PNOCF 01-16
This form is for ownership changes or name changes of a sewer system permit. Please note that"Permittee"references the
existing permit holder,and that"Applicant"references the entity applying for the ownership/name change.
Sewer permits start with a WQ or WQCS and contain the terms sewer extension or collection system in the subject field. This
form should not be used for permits with NC,NCG,SW or other types of non-sewer permits beginning with WQ.
For more information, visit the Division's Water Quality Permitting's website:
A. Sewer System Permit Ownership/Name Change(FORM: PNOCF 01-16)Application(All Applications):
® Submit an original completed and appropriately executed application(PNOCF 01-16).
The Existing Permittee's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T
.0106(c), an alternate person may be designated as the signing official if a delegation letter is provided from a person who
meets the criteria in 15A NCAC 02T.0106(b).
® The Applicant's Certification shall be signed in accordance with 15A NCAC 02T.0106(b). Per 15A NCAC 02T.0106(c),an
alternate person may be designated as the signing official if a delegation letter is provided fm �vpj��dCtVVets the criteria
in 15A NCAC 02T.0106(b).
B. Existing Permit(All Applications):
® Submit a copy of the most recently issued permit and certification. MAY 2 3 2024
C. Property Ownership Documentation(All Applications):
➢ The Applicant shall demonstrate they are the owner of all property containing the sewN (h /NPDES
0 Legal documentation of ownership(i.e.,GIS,deed, article of incorporation,or contract),or
® Written notarized intent to purchase agreement signed by both parties with a plat or survey map,or
® Approved board minutes
D. Certificate of Public Convenience and Necessity(All Applications where the Applicant is a Privately-Owned Public Utility):
0 Per 15A NCAC 02T .01 15(a)(I), provide one copy of the Certificate of Public Convenience and Necessity from the North
Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise for the area to be served
by the non-discharge system.
E. Operational Agreements(Applications where the Applicant is a Home/Property Owners' Association or Developer of lots to be
sold):
➢ Home/Property Owners' Associations
❑ Per 15A NCAC 02T.0115(c),submit an original properly executed Operational Agreement(FORM: HOA).
❑ Per 15A NCAC 02T .0115(c), submit an original proposed or approved Articles of Incorporation, Declarations and By-
laws that contain the language required by the Operational Agreement.
➢ Developers of lots to be sold
❑ Per 15A NCAC 02T.01 15(b),submit an original of the properly executed Operational Agreement(FORM: DEV).
F. Package Submitted in Duplicate
El Submit a copy of all required documents in Instructions A-E as required
THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED IN DUPLICATE
TO:
NCDEQ-DWR
Water Quality Permitting Section
PERCS Unit
By U.S.Postal Service: By Courier/Special Delivery:
1617 MAIL SERVICE CENTER 512 N.SALISBURY ST.
RALEIGH,NORTH CAROLINA 27699-1636 SUITE 925
RALEIGH,NORTH CAROLINA 27604
TELEPHONE NUMBER: [phone]
INSTRUCTIONS FOR APPLICATION PNOCF 01-16 Page 1 of 1

State of North Carolina
DWR
Department of Environmental Quality
Division of Water Resources
SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
INSTRUCTIONS FOR FORM: PNOCF 01-16
Division of Water Resources
I. EXISTING PERMITTEE INFORMATION:
1. Permittee's name: Town Of Pittsboro
2. Signature authority's name: Jonathan Franklin per 15A NCAC 02T.0106(b)
3. Signature authority's title: Town Manager
4. Permittee's mailing address: P.O. Box 759
City: Pittsboro State:NC Zip: 27312-0759
5. Permittee's contact information: Phone number: [phone] Fax Number(919)542-7109
Email Address:[e-mail]
II. APPLICANT INFORMATION:
1. Applicant's name: City Of Sanford
2. Signature authority's name: Hal Hegwer per 15A NCAC 02T.0106(b)
3. Signature authority's title: City Manager
4. Applicant's mailing address: 601 N. Fifth Street
City: Sanford State:NC Zip: 27330-
5. Applicant's contact information: Phone number: (919)777-11 10 Fax Number(919)775-8205
Email Address: [e-mail]
6. Representative's name: Victor Czar
7. Representative's title: Assistant City Manager
8. Representative's contact information Phone number: (919)777-1 1 17 Fax Number(919)774-8179
Email Address: [e-mail]
III. PERMIT INFORMATION:
1. Existing permit number:WOCS00146 and most recent issuance date: 2/22/2023
2. Reason for the permit application:Change of Ownership If other, attach detailed explanation
3. Has the facility been constructed? ®Yes or❑No
4. Has the facility been certified per 15A NCAC 02T.0116? ® Yes or El No
FORM: PNOCF 01-16 Page 1 of 2

IV. CERTIFICATIONS:
Existing Permittee's Certification per 15A NCAC 02T.0106b):
I, _ Jonathan Franklin/Town Manag_er attest that this application
(Signature Authority's name&title from Application Item I.2&3)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that prior to reissuance of the permit
into the Applicant's name, I will continue to be responsible for compliance with the current permit and any discharge of wastewater
from this system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I will also make no claim against the Division of Water Resources should a condition of the existing permit
be violated. I also understand that if all required parts of this application are note completed and that if all required supporting
information and attachments are not included,this application will be returned to me as incomplete.
NOTE — In accordance with General Statutes 143.215_6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to
exceed$10,000 as well as civil penalties up to$25,000 per violation.
Signature: — %' Date:
Applicant's Certification per 15A NCAC 02T.0106(b):
I,_ Hal Hewer/City Manager attest that this application
(Signature Authority's name&title from Application Item II.2&3.)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that after issuance of the permit into
the Applicant's name, I will be responsible for compliance with the issued permit and any discharge of wastewater from this non-
discharge system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I will make no claim against the Division of Water Resources should a condition of this permit be violated.
I also understand that if all required parts of this application package are not completed and that if all required supporting information
and attachments are not included,this application package will be returned to me as incomplete.
NOTE—In accordan e with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or cert ication i ny application package shall be guilty of a Class 2 misdemeanor which ay include a fine not to
exceed$10,000 as w as civil nalties up to$25,000 per violation.
Signature: — Date:
•
FORM:PNOCF 01-16 Page 2.of 2

MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF SANFORD
SANFORD, NORTH CAROLINA
The City Council met at the Sanford Municipal Center, 225 E. Weatherspoon Street, on Tuesday,
August 1, 2023, at 5:00 p.m., in Council Chambers. The following people were present:
Mayor Rebecca Wyhof Salmon Mayor Pro Tem Charles Taylor
Council Member Mark Akinosho Council Member Byron Buckels
Council Member Jean Dabbs Council Member Linda Rhodes
Council Member James Williams City Manager Hal Hegwer
City Attorney Susan Patterson City Clerk Bonnie Davis
Deputy City Clerk Vicki Cannady
Absent:
Council Member Jimmy Haire
CALL TO ORDER
Mayor Salmon called the meeting to order. Council Member Dabbs led the invocation and the
Pledge of Allegiance was recited.
PUBLIC COMMENT
There were no requests for public comment.
APPROVAL OF AGENDA
Mayor Salmon requested that two items be added to the Regular Agenda as Items 8-C, "Letter of
Intent by and between City of Sanford, Chatham Park Investors, LLC, and Clearwater 64, LLC,"and 8-D,
"Wastewater Capacity Commitment Agreement."Council Member Rhodes made a motion to approve the
agenda as amended. Seconded by Mayor Pro Tem Taylor, the motion carried unanimously.
CONSENT AGENDA
Approval of Ordinance Amending the Annual Operating Budget of the City of Sanford FY 2023-2024 —
Re-appropriations (Exhibit A)
Council Member Buckets made a motion to approve the consent agenda. Seconded by Council
Member Akinosho, the motion carried unanimously.
SPECIAL AGENDA
There were no items on the special agenda.
REGULAR AGENDA
Resolution of the City Council of the City of Sanford,North Carolina, Approving an Interlocal Agreement
to Merge the Water,Reclaimed Water,and Sewer Systems of the town of Pittsboro and the City of Sanford
(Exhibit B)
Public Services and Economic Development Opportunities Director Vic Czar reminded Council
that this agreement has been in the works for quite a while and will benefit the entire area now and in the
future.
Attorney Mac McCarley explained that although there will be additional agreements that will need
to be approved in the future, the Interlocal Agreement (Exhibit B) is the last extensive portion of this

City Council Meeting
August I,2023
merger. He reviewed the guiding principles of the merger, which included that there is nothing contained
within the merger documents that would place a burden on existing Sanford ratepayers although,this does
not mean that Sanford's rates will not increase in the future as its system requires.
Council Member Akinosho commented that this merger has not been entered into without thorough
analysis and he asked how long this merger has been considered. Public Works Director Vic Czar
explained that discussions have taken place for more than ten years.
Council Member Akinosho asked for clarification as to which of the Pittsboro employees will be
affected by the merger. Attorney Catherine Clodfelter explained that it will be Pittsboro's utilities
employees, and Pittsboro will provide a list of the affected employees to the City of Sanford. The City of
Sanford and the Town of Pittsboro are members of the North Carolina Local Governmental Employees
Retirement System; therefore, nothing will change in retirement benefits for these employees.
Mayor Pro Tern Taylor asked how the decision-making process would be affected by the merger.
Attorney McCarley replied that the merger agreement declares that Sanford will consult with Pittsboro on
rate issues and major decisions, including land use decisions but ultimately, decisions will be made by the
City of Sanford.
Attorney McCarley added that by approving this merger, Sanford will prove to the State of North
Carolina that it is possible for a mid-sized City to absorb utility systems of surrounding communities.
This agreement and experience will show that regionalization works and Sanford will become a model.
Council Member Akinosho asked what will happen to the agreement Sanford already has with
Chatham Park. Attorney McCarley explained that agreement is for Sanford to manage a privately owned
wastewater treatment plant,which will stay in place. That agreement will be re-negotiated within eighteen
months.
Council Member Rhodes made a motion to approve the Resolution of the City Council of the City
of Sanford, North Carolina, Approving an Interlocal Agreement to Merge the Water, Reclaimed Water,
and Sewer Systems of the town of Pittsboro and the City of Sanford. Seconded by Council Member
Akinosho, the motion carried unanimously.
Interlocal Agreement to Merge the Water, Reclaimed Water,and Sewer Systems of the Town of Pittsboro
and the City of Sanford (Exhibit C)
Attorney Catherine Clodfelter reviewed the basic concepts of the Interlocal agreement, which are
included in Exhibit C. She reviewed the purposes and descriptions of the merger, as well as the
responsibilities, representations and warranties. In addition, Attorney Clodfelter reviewed the details of
the planned capital improvements, which include the construction of a forced main from Pittsboro to
Sanford to allow the flow of two million gallons per day of wastewater from Pittsboro to Sanford and the
construction of a water line that will run from Sanford to Pittsboro to convey water. Attorney Clodfelter
addressed the "First Come, First Served" provision included within the merger agreement, allowing
Sanford to honor the commitments previously made by Pittsboro to Chatham Park Investors (CPI).
Mayor Pro Tem Taylor made a motion to approve the Interlocal Agreement to Merge the Water,
Reclaimed Water, and Sewer Systems of the Town of Pittsboro and the City of Sanford. Seconded by
Council Member Buckels, the motion carried unanimously.
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City Council Meeting
August I.2023
Letter of Intent by and between City of Sanford, Chatham Park Investors, LLC, and Clearwater 64, LLC
(Exhibit D)
Attorney Catherine Clodfelter explained that the Letter of Intent mentions three separate additional
agreements that Chatham Park Investors entered into that will need to be amended in the future, which
include a water treatment expansion design cost agreement, a master service agreement related to the
operation of the water recovery center owned by Chatham Park Investors, located within the Chatham
Park area and managed by Sanford, and which will direct Sanford to direct the flow of wastewater. The
third agreement that is not yet created concerns a water tank and other improvements made by Chatham
Park Investors in Chatham Park and the surrounding area.
Council Member Akinosho made a motion to approve the Letter of Intent between City of Sanford,
Chatham Park Investors, LLC, and Clearwater 64, LLC. Seconded by Council Member Rhodes, the
motion carried unanimously.
Wastewater Capacity Commitment Agreement (Exhibit E)
Attorney Catherine Clodfelter explained that the Wastewater Capacity Commitment Agreement
required a lot of discussions with the City of Sanford financial staff, who were very cooperative in
providing that information. She explained that the intent of the Wastewater Capacity Commitment
Agreement is to have Sanford honor a previous agreement entered into between the Town of Pittsboro
and Chatham Park Investors to commit a certain reservation of wastewater capacity in the force main,
which will be built between Pittsboro and Sanford. This agreement is moot for many reasons but because
of it, Chatham Park Investors in good faith entered into other third-party agreements and this document is
proposed to Council to honor those agreements that Chatham Park Investors made. The agreement
includes a projected water flow that Sanford will commit to between now and 2031, and in return,
Chatham Park Investors will agree to back-stop any gap between the revenue that Sanford brings in from
the Town of Pittsboro service area (rates and fees) and the debt that the City of Sanford needs to pay for
the Pittsboro service area for the force main capital improvement project and the upgrade and expansion
capital improvement, as well as a future water transmission line and any operation and maintenance
expenses. Attorney Clodfelter added that should Sanford not need the money provided by Chatham Park
Investors for back-stop at the end of the year, it will be refunded through credits in System Development
Fees. This back-stop is insurance that Sanford ratepayers will not experience a rate increase for any gap
between the revenues and the debt and that the credit rating will not suffer as a result.
Council Member Buckels made the motion to approve the Wastewater Capacity Commitment
Agreement. Seconded by Council Member Dabbs, the motion carried unanimously.
Mayor Salmon exclaimed that this is a momentous day for the City of Sanford, the Town of
Pittsboro and for partners at Chatham Park, LLC, and we look forward to a very prosperous partnership
in the future. She thanked everyone concerned.
NEW BUSINESS
Ordinance Establishing Speed Limit in Carr Creek Subdivision (Exhibit F)
Transportation Administrator Phil Lawrence explained that this ordinance would reduce the speed
limit from 35 miles per hour to 25 miles per hour in the Can Creek subdivision.
Council Member Dabbs made a motion to approve the Ordinance Establishing Speed limit in Can
Creek Subdivision. Seconded by Council Member Akinosho, the motion carried unanimously.
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City Council Meeting
August I.2023
Preliminary Subdivision Plat for Elizabeth Landing,a 188-lot townhome subdivision to be served by City-
maintained public water, sewer, and streets. The site has frontage on Carbonton Road (SR 1009), west of
the Petty Road intersection, and is identified as Lee County Tax Parcel 9622-78-4882. The site was
rezoned to the Elizabeth Landing Conditional Zoning District in February of 2023 and the plat appears to
comply with the site plan/preliminary plan approved for the rezoning. MAD M&R, LLC, is seeking
approval of a preliminary subdivision plat for Elizabeth Landing (Exhibit G).
Planner II Thomas Mierisch reviewed information from the attached exhibit and explained that
this property was recently rezoned in February, 2023. The property is not in a flood plain; however, it is
within a watershed conservation district overlay and the developer will be required to comply with
development regulations. The Planning Board met on July 18, 2023, and voted unanimously to
recommend Council approve this request, although there was discussion concerning parking.
Mayor Pro Tern Taylor asked Mr. Mierisch the required distance that is approved between
townhomes. Mr. Mierisch explained that the minimum requirement is 20 feet, unless there are curves in
street.
Council Member Rhodes asked Mr. Mierisch to explain the outcome of the parking discussions.
Mr. Mierisch explained that each townhome will have a driveway and a garage. In addition, some people
could park on the street for special occasions.
Council Member Akinosho asked the distance from the street to the garages because if there is
enough distance, guest parking should not be a concern. Mr. Mierisch replied that he did not know at this
time and it would vary but they will be built within the required setbacks. He acknowledged that this may
have to be addressed in future.
Council Member Rhodes made a motion to approve the Preliminary Subdivision Plat for Elizabeth
Landing. Seconded by Council Member Dabbs, the motion carried unanimously.
Resolution by Governing Body of Applicant—Lead Service Line Inventory (Exhibit H)
City Engineer Sherry Early explained that this resolution outlines lead and copper service line
inventory and the City's intent to submit funding applications to request state loan assistance to complete
that inventory. She explained that this application is due August 18, 2023. She explained that this does
not mean that there is lead in the lines of the City; it is a proactive measure in maintaining the City's low
or no interest loans for our inventory. She explained the requirements of the Safe Drinking Water Act
require that all systems must conduct an inventory of service line materials and their distribution system.
The City of Sanford's inventory is due to the Department of Environmental Quality (DEQ) October 16,
2024. Currently the City is working with a design consultant on a desktop analysis using materials and
information currently on hand to determine areas that may be of concern. Once the analysis is complete,
staff anticipates there will be some lines falling into the unknown category, and will allow staff further
investigation of those lines. All of this information will assist in the grant application. Early this summer,
DEQ sent solicitations to all suppliers to determine interest in applying for these loans, so we submitted an
application of interest and DEQ will determine the funding amount. The minimum funding is
approximately $67 million across the state; however, our application is capped at $500,000 due to our
category. She added that because they suspect this project will cost more than $500,000, they have
submitted a second application request just shy of the $500,000 cap so that the state is aware of our total
funding need.
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City Council Meeting
August I.2023
Council Member Dabbs asked if this funding would affect the merger with the Town of Pittsboro
and had the Town of Pittsboro applied for the funding. Sherry Early replied she did not know, but she
would assume they did since they have the same opportunity. She said she would investigate to determine
if they did apply for the funding.
Council Member Akinosho asked if the grant application is data driven. Ms. Early said currently
the analysis would be categorized as an estimate but it is based on available data, such as GIS mapping,
customer service records, building permits and associated dates, and service records.
Council Member Buckels made a motion to approve the Resolution by Governing Body of
Applicant — Lead Service Line Inventory. Seconded by Council Member Akinosho, the motion carried
unanimously.
Mayor Salmon requested a brief recess at 6:00 p.m. and the meeting resumed at 6:10 p.m.
CASES FOR PUBLIC HEARING (Public hearings began at 6:10 P.M)
Public Hearing on Project Frame and NC Railroad Rail Infrastructure Grant Program
Mayor Salmon opened the public hearing.
City Attorney Susan Patterson explained that in 2021,Council approved an economic development
project for Project Frame, which is currently known as Service Offsite Solutions, LLC. In 2022, a public
hearing was held to approve a NC Railroad Rail Infrastructure Grant in the amount of up to $300,000 for
the construction of a rail spur to the project site on Colon Road. As collateral for that grant, Service Offsite
Solutions, LLC, would offer a letter of credit in the amount of$150,000 to secure performance under the
grant. Attorney Patterson informed Council that they could consider whether to enter into the agreement
described in Exhibit I for the Letter of Credit and the North Carolina Railroad Rail Infrastructure Grant
Program. Attorney Patterson reviewed the terms,provisions and performance measures constituted within
the agreement.
Council Member Akinosho questioned if Lee County was involved is this project. Attorney
Patterson replied that Lee County has made a verbal commitment to provide $150,000; however, they
have not provided a written commitment. Mr. Akinosho commented that he is not against accepting this
letter of credit; however, he questioned if perhaps the City should pursue a commitment from Lee County
because they will be collecting taxes. Attorney Patterson explained that this project was first reviewed by
Lee County and they were reluctant to be responsible for $300,000. The property was annexed into the
Sanford City Limits and the project was presented to the City, which City Council agreed to undertake
this project. City Manager Hal Hegwer added that he had a verbal conversation with the Lee County
manager who proposed offering half of the $150,000; the City and County would be responsible for
$75,000 each.
Jimmy Randolph (of 3405 Windmere Drive, Sanford, North Carolina) CEO of Sanford Area
Growth Alliance (SAGA), has been involved in discussions regarding this project for several years and
he is glad it is coming to fruition. In response to Council Member Akinosho's question concerning Lee
County's commitment to the project, Mr. Randolph explained that conversations have taken place on
numerous occasions with both the City and Lee County, revolving around the fact that the railroad was
willing to provide a key piece of the incentive for this company. He explained that we were competing
with another company that already had a rail onsite and putting a rail onto this site was critical to the
decision of the company to locate here; however, their grant program requires a local government entity
to partner with them. For a variety of reasons, the City of Sanford ultimately agreed to serve in this
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City Council Meeting
August I.2023
capacity. Both the City of Sanford and Lee County offered a local incentive to the company to locate in
this area, which is a separate agreement. Mr. Randalph explained that these are performance-based
agreements and although the risk is real, our expectation is that this company will easily meet the required
performance requirements in terms of the rail use. Mr. Randalph pointed out that a rail site that is bounded
by two Class I rail providers is a valuable site and a rail spur into the site enhances the value significantly
(more than the cost to install the rail spur). This site was formerly an abandoned brick yard and the value
of the site has already been enhanced by this company agreeing to locating here. This is an exciting project
for the betterment of Sanford and Lee County. Mr. Randolph noted that SAGA has been asked to help
facilitate the documentation and the administration of the grant and they stand ready to do so. He noted
that this letter of credit is an exceptional step that the company agreed to take to help address the
community concerns. Mr. Randalph explained that he was involved in conversations regarding the City
and County splitting the gap cost of$150,000 and the expectation was that the need to fill this gap will
not arise. He encouraged City Council to move forward with this project.
Attorney Susan Patterson informed Mr. Randalph that since SAGA has agreed to administering
the Grant project,there are certain things that have to be done within five days of execution. Mr. Randalph
replied that his understanding of the agreement deadline was within five days of execution or of the
construction contract,whichever is later, which would provide more time. Attorney Patterson pointed out
to Council that the agenda package includes information concerning construction estimates.
With no other speakers, Mayor Salmon closed the public hearing.
• Letter of Credit Agreement (Exhibit I)
Council Member Rhodes made a motion to approve the Letter of Credit Agreement. Seconded
by Council Member Akinosho, the motion carried unanimously.
• Definitive Project Investment Agreement (Exhibit J)
Council Member Buckels made a motion to approve the Definitive Project Investment
Agreement. Seconded by Council Member Akinosho, the motion carried unanimously.
Public Hearing on Highway 78 North Phase III Developers Agreement
Mayor Salmon opened the public hearing.
Utilities and Engineering Director Paul Weeks explained that this agreement addresses
downstream sewer capacity that is needed for the Highway #78 North project and it specifically involves
the Lemon Springs Lift Station. The City has entered into agreements with three other developments and
they all recognize the fact that the downstream lift station would require modification and they all chose
to precipitate in a developer's agreement to pay their proportionate share towards the cost of the lift station.
The proposed developer's agreement is for Phase III for the development of 59 single-family homes and
their cost share would be $10,726.79. This agreement will be for a period of five years to acquire permits
and begin construction. Mr. Weeks noted that he has spoken with this developer and he feels they are
ready to move forward.
Jimmy Randolph (of 3405 Windmere Drive, Sanford), CEO of SAGA, expressed support for this
agreement.
With no additional speakers, Mayor Salmon closed the public hearing.
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City Council Meeting
August I,2023
• Adoption of Developers Agreement (Exhibit KZ
Mayor Pro Tem Taylor made a motion to approve the Highway 78 North Phase III Developers
Agreement. Seconded by Council Member Dabbs. the motion carried unanimously.
DECISIONS ON PUBLIC HEARINGS:
Petition Requesting Contiguous Annexation of 8.38 +/- Acres owned by Tony Allen Craig and Charles
Grace Properties, LLC
Community Development Marshall Downey reviewed the annexation documents listed below.
• Resolution Directing the Clerk to Investigate a Petition for Contiguous Annexation under G.S.
160A-31 (Exhibit L)
Mayor Pro Tern Taylor made a motion to approve the Resolution Directing the Clerk to
Investigate a Petition for Contiguous Annexation under G.S. 160A-31. Seconded by Council
Member Akinosho, the motion carried unanimously.
• Receive Certificate of Sufficiency (Exhibit M)
City Clerk Bonnie Davis confirmed that the Certificate was sufficient.
• Resolution Fixing Date of Public Hearing on Question of Annexation Pursuant to G.S. 160A-
31 (Exhibit N)
Council Member Buckels made a motion to approve the Resolution Fixing the Date of the
Public Hearing on the Question of Annexation Pursuant to G.S. 160A-31 for August 15, 2023,
at 6:00 p.m. Seconded by Council Member Rhodes, the motion carried unanimously.
Petition Requesting Contiguous Annexation of 5.22 +/- Acres owned by Circle K Stores, Inc.
Community Development Director Marshall Downey summarized the petition and reviewed the
first steps listed below.
• Resolution Directing the Clerk to Investigate a Petition for Contiguous Annexation under G.S.
160A-31 (Exhibit 0)
Council Member Dabbs made a motion to approve the Resolution Directing the Clerk to
Investigate a Petition for Contiguous Annexation under G.S. I60A-31. Seconded by Council
Member Rhodes, the motion carried unanimously.
• Receive Certificate of Sufficiency (Exhibit P)
City Clerk Bonnie Davis confirmed that the Certificate was sufficient.
• Resolution Fixing Date of Public Hearing on Question of Annexation Pursuant to G.S. 160A-
31 (Exhibit Q)
Council Member Buckels made a motion to approve the Resolution Fixing the Date of the
Public Hearing on the Question of Annexation Pursuant to G.S. 160A-31 for August 15, 2023,
at 6:00 p.m. Seconded by Council Member Akinosho, the motion carried unanimously.
DECISIONS ON PUBLIC HEARINGS:
Application by Bass, Nixon and Kennedy, Inc.,to rezone one 13.97 +/- acre tract of land at the terminus of
Pathway Drive and fronting on US Highway 1/Jefferson Davis Highway from General Commercial (C-2)
and Residential Mixed(R-12)to the Sanford Townhomes off of Pathway Drive Conditional Zoning District
to allow the development of a residential townhome subdivision. The subject property is owned by Albert
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City Council Meeting
August 1,2023
Call Adcock and is identified as Lee County Tax Parcel 9643-25-6533-00 as depicted on Tax Maps 9643.01
and 9643.03. It is also illustrated as Lot 1 on an "Exempt Subdivision and Recombination Survey for
Nottingham Property Associates,LLC"recorded at Plat Cabinet 2015,Slide 111 of the Lee County Register
of Deeds Office (Exhibit R).
Zoning Administrator Amy McNeill explained that the Planning Board met on July 18, 2023,
following the public hearing and recommended unanimously that Council approve the rezoning request.
The Planning Board acknowledged that the rezoning request is consistent with the Plan SanLee long range
plan designation of Urban Neighborhood because attached single-family dwellings are included as a
recommended residential use for this land use designation.
• Vote to Approve a Statement on Long-Range Plan Consistency as it Relates to this Zoning Map
Amendment
Council Member Rhodes made a motion that the proposed zoning map amendment is consistent
with the Plan SanLee long range plan designation of Urban Neighborhood because attached
single-family dwellings are included as a recommended residential use for this land use
designation. Seconded by Council Member Dabbs, the motion carried unanimously.
• Ordinance Amending the Official Zoning Map ofthe City of Sanford,North Carolina(Exhibit S)
Council Member Rhodes made a motion that the City Council approve the proposed zoning
map amendment because the site is appropriate for a single-family attached residential land use
at the density proposed by the applicant and as supported by the Urban Neighborhood land use
designation. Seconded by Council Member Buckels, the motion carried unanimously.
Application by Travis Thompson/Alexander Development Group, LLC, to rezone two (2) tracts of land
comprising 7.07 +/- acres in the southeastern corner of the intersection of Fire Tower Road and Garden
Street from Residential Mixed (R-12) to the Fire Tower Conditional Zoning District to allow the
development of a residential townhome subdivision as illustrated on the "Fire Tower Conditional Zoning
Master Plan Submittal" submitted as part of the application. The subject property is owned by Richard A.
Thompson and is identified as Lee County Tax Parcels 9642-42-1112-00 (developed with a house
addressed as 1203 Fire Tower Road) and 9642-42-6311-00 on Lee County Tax Map 9642.03 (Exhibit T).
Zoning Administrator Amy McNeill explained that the Planning Board met on July 18, 2023, after
the public hearing and unanimously recommended that Council approve this request and acknowledged
that the proposed zoning map amendment is consistent with the long-range plan designation of urban
neighborhood because attached single-family dwellings are included as a recommended residential use for
this land use designation.
Council Member Buckels requested be recused because he is involved with Adcock and Associates
Real Estate. Mayor Pro Tem Taylor made a motion to recuse Council Member Buckels. Seconded by
Council Member Akinosho,the motion carried unanimously.
• Vote to Approve a Statement on Long-Range Plan Consistency as it Relates to this Zoning Map
Amendment
Council Member Dabbs made a motion that the proposed amendment is consistent with the Plan
SanLee long range plan designation of Urban Neighborhood because attached single-family
dwellings are included as a recommended residential use for this land use designation.
Seconded by Council Member Rhodes, the motion carried unanimously.
8

City Council Meeting
August 1,2023
• Ordinance Amending the Official Zoning Map of the City of Sanford,North Carolina(Exhibit U)
Council Member Rhodes made a motion that City Council approve the proposed zoning map
amendment because the site is appropriate for a single-family attached residential land use at
the density proposed by the applicant and as supported by the Urban Neighborhood land use
designation. Seconded by Council Member Dabbs, the motion carried unanimously.
Application by Helix Ventures, LLC, to rezone ten (10) tracts of land comprising 879.17 +/- acres with
frontage on Hawkins Avenue and Iron Furnace Road from Residential Agricultural (RA), Light Industrial
(LI), and Heavy Industrial (HI)to the Helix Innovation Park at the Brickyard Conditional Zoning District
(HIP-CZ) to allow the development of a business/industrial park. The subject property is owned by Helix
Ventures, LLC and is identified as Lee County Tax Parcels 9635-72-7663-00, 9644-29-5867-00, 9644-38-
5717-00 (3403 Hawkins Avenue),9645-30-8543-00 (3401 Hawkins Avenue), 9645-30-8629-00, 9635-94-
9766-00, 9645-11-1316-00 (2613 Hawkins Avenue), 9645-23-6182-00, 9645-33-2134-00 (3635 Hawkins
Avenue), and 9645-32-1978-00 on Lee County Tax Maps 9644.01, 9645.03, 9645.01, and 9635.02. The
subjectproperty was annexed into the corporate City limits on June 20, 2023 (Exhibit V).
Zoning Administrator Amy McNeill explained that the Planning Board met on July 18, 2023, after
the public hearing on this request, and unanimously recommended that Council approve the proposed
rezoning. The board acknowledged that the request was consistent with the Plan SanLee long range plan
designation of Industrial Center, which encompasses the majority of the site because the request would
allow industrial type uses; however, the request is not consistent with the Countryside designation for the
balance of the site since industrial uses are not included within this land use designation (Exhibit V).
• Vote to Approve a Statement on Long-Range Plan Consistency as it Relates to this Zoning Map
Amendment
Council Member Buckels made a motion that the proposed zoning map amendment is consistent
with the Plan SanLee long range plan designation of Industrial Center(which encompasses the
majority of the site) because the request would allow industrial-type uses. It should be noted,
however, that the request is not consistent with the Countryside designation for the balance of
the site since industrial uses are not included within this land use designation. Seconded by
Council Member Rhodes, the motion carried unanimously.
• Ordinance Amending the Official Zoning Map of the City of Sanford, North Carolina (Exhibit
W)
Council Member Rhodes made a motion that the City Council approve the proposed zoning
map amendment because the site is appropriate for an industrial land use. Seconded by Council
Member Dabbs, the motion carried unanimously.
OTHER BUSINESS
Council members were in agreement that this is a historical moment for the City of Sanford in the
approval to merge water, reclaimed water and sewer systems with the Town of Pittsboro.
Mayor Pro Tem Taylor noted that Margaret Murchison has reached a milestone of 45 years in
reporting news. He mentioned that the concert series will continue during the month of August and
encouraged everyone to attend. He also mentioned that there will be a neon foam dance party on August
11, 2023. Mr. Taylor extended condolences to the family of Bob Bracken who lost his battle with cancer
this week and added that Mr. Bracken served as an Engineer to the City of Sanford.
9

City Council Meeting
August I.2023
Mayor Salmon noted that she received a letter this week from the Government Finance Officers
Association informing us that our Annual Comprehensive Report for the Fiscal Year 2021-2022 qualifies
the City of Sanford for the Government Financial Officers Association (GFOA) Certificate of
Achievement for excellence in financial reporting. The Certificate of Achievement is the highest form of
recognition in governmental accounting and its attainment represents a significant accomplishment by a
government and its management. Mrs. Salmon expressed pride in our Finance Department's work on our
financial stewardship.
Financial Services Director Beth Kelly thanked Glenda Rosser, who oversaw financial reporting
to apply for this award as well as other requirements and processes and also for overseeing the audit this
past year. She also thanked the staff who support Glenda and herself. She mentioned that the City of
Sanford has applied for GFOA Budget Award and every year they have tied with the Town of Cary for
the most consecutive years of this award. They have also applied for the Popular Annual Financial Reward
(PAFR), which they basically won from the Sanford 101 years ago. The City of Sanford has received the
Triple Crown Award over the last few years for financial statements, budget and the PAFR Award.
Fire Chief Matt Arnold informed Council that in February we applied for the Assistance of Fire
Fighters Grant through FEMA to replace our existing breathing air packs. We have received confirmation
that we have been awarded grant funding in the amount of$355,085, which is the largest amount of grant
funding in the state for this award. He added that this grant only requires a five percent match for the City
of Sanford. The same narratives that were used in applying for this grant were used in the SAFER grant
application, for which we are awaiting notifications.
Mayor Salmon noted there was a need for Council consensus to receive this award and confirmed
that there was consensus. She thanked staff for the tremendous efforts to ensure the best decisions are
being made to serve our citizens.
ADJOURNMENT
Council Member Rhodes made the motion to adjourn the meeting; seconded by Council Member
Buckels, the motion carried unanimously.
ALL EXHIBITS CONTAINED HEREIN ARE HEREBY INCORPORATED BY REFERENCE
AND MADE A PART OF THESE MINUTES.
R l( ctfully Submitted,
EBECCA WY SA t/ON, MAYOR
AT 'ST:
,
Lavet<a)
$O IE DAVIS, CITY CLERK
10

RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE TOWN OF
PITTSBORO APPROVING AN INTERLOCAL AGREEMENT TO MERGE THE
WATER, RECLAIMED WATER,AND SEWER SYSTEMS OF THE TOWN OF
PITTSBORO AND THE CITY OF SANFORD
WHEREAS, the Town of Pittsboro, North Carolina (the '`Town") is a validly existing
municipal corporation of the State of North Carolina, existing as such under and by virtue of the
Constitution, statutes and laws of the State of North Carolina(the"State"); and
WHEREAS, the City of Sanford, North Carolina (the '`City") is a validly existing
municipal corporation of the State of North Carolina, existing as such under and by virtue of the
Constitution, statutes and laws of the State of North Carolina(the "State"); and
WHEREAS, the Town and the City desire to merge the Town Utility System and the City
Utility System in order to provide Utility Services to the Town's current and future Utility
Services customers, provide economies of scale with a larger system to the Town's and City's
Utility Services customers, and enhance the ability of the merged systems to provide economic
development assistance to the region (the "Merged System"); and
WHEREAS, N.C.G.S. § 160A-461 authorizes units of local government to enter into
interlocal agreements with each other to execute any undertaking and allows the participating
units to determine the reasonable duration of the agreements; and
WHEREAS, N.C.G.S. § 160A-461 requires that interlocal agreements be ratified by
resolution of the governing board of each participating unit, and the resolution spread upon the
minutes of the governing board; and
WHEREAS, the Town has determined that it is in the best interest of the Town to enter
into an interlocal agreement, to be dated on or about August 1, 2023, to undertake the Project
(the "Interlocal Agreement") with the City of Sanford; and
WHEREAS, there has been described to the Board of Commissioners the form of the
Interlocal Agreement (the ''Instrument'), copies of which have been made available to the Board
of Commissioners, which the Board of Commissioners proposes to approve, enter into and
deliver, to effectuate the proposed undertakings;
WHEREAS, it appears that the Instrument is in an appropriate form and is an appropriate
instrument for the purposes intended;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
TOWN OF PITTSBORO, AS FOLLOWS:
Section 1. Ratification. The Board of Commissioners hereby ratifies by resolution
the Interlocal Agreement.
Section 2. Authorization to Execute the Instruments. The form and content of the
Instruments are hereby in all respects authorized, approved and confirmed, and the Mayor, the

Town Clerk and the Town Manager and their respective designees are hereby authorized,
empowered and directed, individually and collectively, to execute and deliver the Instruments,
including necessary counterparts, in substantially the form and content presented to the Board of
Commissioners, but with such changes, modifications, additions or deletions therein as they
deem necessary, desirable or appropriate, their execution thereof to constitute conclusive
evidence of the Town's approval of any and all changes, modifications, additions or deletions
therein from the form and content of the Instruments presented to the Board of Commissioners.
From and after the execution and delivery of the Instruments, the Mayor, the Town Clerk, the
Town Manager, the Town Attorney, the Engineering Department Director, and the Finance
Director of the Town (the "Authorized Officers"), individually and collectively, are hereby
authorized, empowered and directed, to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Instruments
as executed.
Section 3. Town Representative. The Authorized Officers, individually and
collectively, are each hereby designated as the Town's representative to act on behalf of the
Town in connection with the undertakings contemplated by the Instruments. The Authorized
Officers and/or designee or designees are in all respects authorized on behalf of the Town to
supply all information pertaining to the Town for use in the undertakings contemplated by the
Instruments. The Authorized Officers or their respective designees are hereby authorized,
empowered and directed, individually and collectively, to do any and all other acts and to
execute any and all other documents, which they, in their discretion, deem necessary and
appropriate to consummate the undertakings contemplated by the Instruments or as they deem
necessary or appropriate to implement and carry out the intent and purposes of this Resolution
and the on-going administration of the Instruments.
Section 4. Severability. If any section, phrase or provision of this Resolution is for
any reason declared to be invalid, such declaration will not affect the validity of the remainder
of the sections, phrases or provisions of this Resolution.
Section 5. Repealer. All motions, orders, resolutions and parts thereof, in conflict
herewith are hereby repealed.
Section 6. Effective Date. This Resolution is effective on the date of the adoption
by the City of Sanford of the Interlocal Agreement.
2

I, Carrie Bailey, Town Clerk of the Town of Pittsboro, North Carolina, DO HEREBY
CERTIFY that the foregoing is a true and exact copy of a resolution entitled "RESOLUTION
OF THE BOARD OF COMMISSIONERS OF THE TOWN OF PITTSBORO
APPROVING AN INTERLOCAL AGREEMENT TO MERGE THE WATER,
RECLAIMED WATER,AND SEWER SYSTEMS OF THE TOWN OF PITTSBORO AND
THE CITY OF SANFORD" duly adopted by thesoard of Commissioners of the Town of
Pittsboro, North Carolina at a meeting held on theoW day of July, 2023.
WITNESS my hand and the corporate seal of the Town of Pittsboro, North Carolina, this
the,21th day of July, 2023.
Town of Pittsboro
al)
ayor Cin Perry
ra.A.Att.
Carrie Bailey C/
Town Clerk
ii f'F 1� u +At i
3

AN INTERLOCAL AGREEMENT TO MERGE THE WATER, RECLAIMED WATER,
AND SEWER SYSTEMS OF THE TOWN OF PITTSBORO AND THE CITY OF
SANFORD
THIS INTERLOCAL AGREEMENT(hereinafter the"Agreement")is dated ±—I ,
2023, ("Effective Date") and entered into by the CITY OF SANFORD,a municipal corporation of
the State of North Carolina(hereinafter the"City"or"Sanford")and the TOWN OF PITTSBORO,
a municipal corporation of the State of North Carolina(hereinafter the"Town"or"Pittsboro")(and
collectively, the"Parties").
WITNESSETH:
WHEREAS. Sanford owns, operates. and maintains water, reclaimed water, and sewer (also
referred to herein as "wastewater") utility systems within and outside its corporate limits ("City
Utility System"); and
WHEREAS, Pittsboro owns, operates. and maintains water, reclaimed water, and sewer utility
systems within and outside its corporate limits ("Town Utility System"); and
WHEREAS. Pittsboro expects to have significant residential and commercial development over
the next several decades, and that development will require significant capital improvements to
the Town Utility System in order to provide water. reclaimed water, and sewer services ("Utility
Services")to its current and future Utility Services customers; and
WHEREAS,the Parties agree that a merger of Town Utility System and City Utility System is the
most efficient and cost-effective way to provide Utility Services to the Town's current and future
Utility Services customers. provide economies of scale with a larger system to the Town's and
City's Utility Services customers, and enhance the ability of the merged systems to provide
economic development assistance to the region; and
WHEREAS. a merger of the Utility Systems will give access to increased capital for the Town
Utility System improvement needs: and
WHEREAS, the Parties intend to structure the merger so that it will allow increased access to
capital for system improvement needs without, however, increasing the rate burden on the existing
citizens and customers of the City Utility System; and
WHEREAS, Sanford is willing to assume full responsibility for the provision of Utility Services
in and around Pittsboro, including responsibility for Pittsboro's current and future Utility Services,
related equipment, and property rights, and
WHEREAS, N.C.G.S. § I60A-274 expressly authorizes the Town to convey its interests in real
and personal property to the City upon such terms and conditions as it deems wise,with or without
consideration: and
WHEREAS, N.C.G.S. § 160A-461 et al. authorizes units of local government to enter into
interlocal agreements with each other to execute any undertaking and allows the participating units
to determine the reasonable duration of the interlocal agreements; and
1
PPAB 9694751%I

WHEREAS.N.C.G.S. § 160A-461 requires that interlocal agreements be ratified by resolution of
the governing board of each participating unit. and the resolution spread upon the minutes of the
governing board.
NOW,THEREFORE, in consideration of the premises and the mutual covenants and agreements
hereinafter contained, the Parties hereto agree as follows:
ARTICLE 1
PURPOSES AND DESCRIPTION OF MERGER
Section 1.01. The Merger's purposes are to:
(a) Assure the continued provision of high quality, reliable, economical, safe, and
sanitary water, reclaimed water and wastewater utility services within the present and future
corporate limits and Town Service Area. as shown on the map in Exhibit D;
(b) Provide for the orderly and permanent transfer of responsibility for the ownership,
construction.operation.maintenance,management.and financing of the Town Utility System from
Pittsboro to Sanford;
(c) Transfer from Pittsboro to Sanford the managerial, operational, and financial
responsibility of operating. maintaining, and expanding the Merged Systems (as defined herein)
serving the present and future corporate limits and Town Service Area, as shown on the map in
Exhibit D: and
(d) Enable Sanford to operate, maintain and expand said Utility Systems to
accommodate planned growth and development w ithin Pittsboro's planning and zoning
jurisdiction in accordance with the terms and conditions hereinafter stated.
Section 1.02. Merger of the Town Utility System into the City Utility System. The City will
merge the Town Utility System in its entirety into the City Utility System,taking on all the assets,
liabilities, operations, maintenance, permits, contracts, agreements. allocations, customers, and
any other aspects of the Town Utility System. The resulting utility systems will be known as the
"Merged System." Subsequently, the City will own and operate the Merged System for the
customers of both the City and the Town.
Section 1.03. Right to Operate. Pittsboro hereby irrevocably grants Sanford the right to design,
construct, operate. maintain, and perform all related activities required to operate, maintain,
expand, upgrade, and improve the Town Utility System (together, the "Right to Operate"), which
Right to Operate includes the right to decommission. sell, or otherwise dispose of property, in
accordance with Sanford's water, water reclamation, and sewer system standards and policies for
operation and performance. level of service, reliability, and redundancy. The Right to Operate
includes the encroachment authority for Sanford to operate in all public rights-of-way over which
Pittsboro has the sole authority or joint authority with the North Carolina Department of
Transportation. Sanford's water, water reclamation, and sewer system standards and policies shall
be applied in Pittsboro to the same extent and in the same manner as applied to other customers of
the City Utility System.
2
PPAB 9694751%I

ARTICLE 2
RESPONSIBILITIES, REPRESENTATIONS,AND WARRANTIES
Section 2.01. City's Responsibilities.The City will perform the services customarily performed
by eater, reclaimed water, and sewer utility systems with respect to the Merged System, such as:
(a) read all meters of, send all bills to. and collect all payments from the Merged
System's new and existing customers. including maintaining the current location for bill payment
in the Town:
(b) administer the provision of Utility Services to existing and new customers and
regulate the construction of related infrastructure by developers intending to connect to the Merged
System;
(c) maintain. repair. and improve the Merged System in a timely manner and operate
and manage the Merged System in a manner consistent with good business and operating practices
for comparable facilities and in full compliance with all issued permits, operational requirements,
industry standards or heightened industry standards. for example, the use of granular activated
carbon (GAC) absorbers, as set by the City now and in the future. and the applicable laws, rules,
and regulations of regulatory bodies, governmental units, or agencies thereof;
(d) operate, maintain, and manage the Merged System with employees who have the
operational expertise and professional credentials and licenses necessary to perform their
respective duties.and perform the administrative and managerial duties required for the operation
of the Utility Services and provide adequate tools and equipment for such purpose;
(e) undertake and complete all activities relating to the design, construction, startup,
and operation of the Town Utility System upgrade and improvement projects agreed upon as a part
of this Agreement. in accordance with the City Utility System standards for operation and
performance. level of service. reliability, and redundancy;
(f) upon the completion of any construction, operation, maintenance, replacement,
improvement, or related activity causing damage to Town streets or other property in Pittsboro,
repair or replace such property in accordance with Pittsboro's ordinances;
(g) operate and maintain the Merged System consistent with Sanford's obligation and
commitment to provide proper, efficient, and environmentally sound Utility Services now and in
the future:
(h) maintain fire hydrants in a reasonable manner, with hydrant spacing and hydrant
maintenance in a manner equivalent to the standards within the City, and coordinate with the
Pittsboro Volunteer Fire and Rescue Department for necessary testing;
(i) solicit input from the Town on current and future Utility Services needs of the Town
on at least an annual basis, as set out in Section 5.03: and
) provide for the current and future needs of the Town for expanded water, reclaimed
water, and sewer services as set out in Article 6.
3
PPAB 9694751%I

Section 2.02. Town's Responsibilities. The Town
(a) provide the City with true. accurate. and complete copies of the following: the
Town's current rates and fees for Utility Services;all ordinances, resolutions,contracts,agreements,
and rules and regulations relating to the Town Utility System; and all other plans, specifications,
and operation/maintenance manuals for the Town Utility System;
(b) provide and transfer or assign to the City true. accurate, and complete copies of
each permit, contract, and agreement associated with the Town Utility System under which the
Town is obligated to perform:
(c) accommodate and collaborate w ith the City as the City maintains the current
location for bill payment in Pittsboro and enter into am further agreements necessary for billing
and collections during the period of Transfer; and
(d) prior to the Transfer Date or for such time as the Town remains in possession of any
Transfer Items,as defined and described in Section 3.02,continue to manage and operate the Town
Utility System in a manner consistent w ith good business and operating practices for comparable
facilities and in full compliance with all issued permits, operational requirements, industry
standards,and the applicable laws, rules.and regulations of regulatory bodies,governmental units,
or agencies thereof.
Section 2.03. City Representations and Warranties. The City hereby represents and warrants
as follows:
(a) This Agreement, and all other documents and instruments related or required
hereby, have been duly authorized. executed, and delivered by the City and constitute valid,
binding, and enforceable obligations by the City.
(b) The City's execution and delivery of this Agreement and compliance with its
provisions will not conflict with or constitute a breach or violation of, or a default under any
contracts or agreements to which the City is a party. any applicable law, rule, or regulation of any
governmental unit or agency thereof. or any applicable judgment or decree of any court or other
governmental agency or body.
(c) The City will perform its responsibilities under this Agreement with the same
reasonable care and diligence as is used when it performs those services for its customers within
City limits.
(d) The execution and delivery of this Agreement and acceptance of the conveyance of
the Town Utility System to the City do not require the approval of any regulatory body,
governmental unit or agency. or any other persons/entities whatsoever except as noted in this
Agreement.
Section 2.04. Town Representations and Warranties. The Town hereby represents and
warrants as follows:
(a) The Town has the power and authority to assign the permits,contracts,agreements.
assets, and liabilities associated with the Town Utility System to the City,and no events of Default
4
PPAB 969475I%I

have occurred or are occurring thereunder; the permits, contracts. agreements, and liabilities
remain in full force and effect. and are enforceable in accordance with their respective terms and
conditions.
(b) This Agreement, and all other documents and instruments related hereto and/or
required hereby, has/have been duly authorized, executed, and delivered by the Town and
constitute valid, binding. and enforceable obligations by the Town.
(c) The Town's execution and delivery of this Agreement and compliance with its
terms and conditions will not conflict with or constitute a breach or violation of,or a default under
any contracts or agreements to which the Town is a party, any applicable law, rule, or regulation
of any governmental unit or agency thereof. any applicable judgment or decree of any court or
other governmental agency or body, or the provisions of any permits held by the Town for the
ownership, operation. and maintenance of the Town Utility System.
(d) The execution and delivery of this Agreement and the conveyance of the Town
Utility System to the City do not require the approval of any regulatory body, governmental unit,
or agency, or any other persons/entities whatsoever except as noted in this Agreement.
(e) All permits held by the Town regarding the ownership.operation, and maintenance
of the Town Utility System are in full force and effect.have been duly complied with in all material
respects, and are assignable and transferable to the City.
(f) To the best of the Town's knowledge. the Town has the right to assign or otherwise
transfer to the City all easements held by the Town with regard to the Town Utility System without
the consent of third parties. In the event of any doubt or challenge to a specific easement,the Town
agrees to cooperate with the City in executing a license or similar agreement to permit the City's
use of the easement for the purposes set forth in this Agreement.
(g) All representations, warranties and/or covenants of the Town are made to the
Town's actual knowledge. with no duty to investigate.
Section 2.05. Existing Town Utility System Debt and Obligation. As of the date of this
Agreement. there is no debt associated with the Town Utility System.The City will not assume or
reimburse any such debt.
ARTICLE 3
TRANSFER OF SYSTEM
Section 3.01. Town Utility System Description. The Town agrees to transfer to the City all real
and personal property composing the Town Utility System, including, without limitation, all
collection and distribution system infrastructure, all physical infrastructure, real and personal
property, cash assets, relevant documents and records, customer accounts, and any other items
associated with the Town Utility System (individually, these are the "Transfer Items,"and the act
of completely transferring all Transfer Items is the "Transfer").
Section 3.02. Execution and Transfer. The Town agrees to fully complete the Transfer as
described above no later than June 30,2024 (the "Transfer Date").Notwithstanding the obligation
5
PPAB 9694751%I

to complete the Transfer by the Transfer Date, the Town shall have a continuous obligation after
June 30, 2024 to transfer any Transfer Items that should have been transferred but were not by the
Transfer Date.
(a) Continued Operation Prior to Transfer Date. The City and Town contemplate that the
Transfer may take place in stages and require coordination between the City and Town.As a result,
the Transfer Date represents the deadline for completing the Transfer, but Transfer Items may be
transferred to the City for ownership prior to the Transfer Date.
(b) Information Required Within Thirty Days of Effective Date. The Town and City must
share certain information in order to complete the Transfer. Within ten (10) days of the Effective
Date,the City shall make a request to the Town for documents,information,or in-person inspection
of software, documents. equipment, etc., associated with the Town Utility System. Within twenty
(20) days of receiving the request from the City. the Town shall provide to the City all requested
documents and/or information. Any in-person inspection must be permitted within twenty (20)
days of the date the City requests an in-person inspection.
(c) Form of Transfer. Transfer shall be by execution of deeds and dedication documents
prepared by the Town Attorney and executed by the appropriate Town and City representatives, in
addition to any other documentation. agreements. or bills of sale necessary to complete the
Transfer.The Town shall convey to the City the Town Utility System by delivering a deed or deeds
for the Town's real property in the Town Utility System, including, but not limited to, transfer or
assignment of Utility Services easements owned by the Town, and an Assignment and Bill of Sale
for the Town's personal property including, inter alia, the Town Utility System infrastructure,
facilities,structures(e.g.. lift stations,water towers),vehicles,equipment,supplies,funds,permits,
agreements. contracts (including, but not limited to. leases to any wireless systems that co-locate
on the water towers),other property rights. liabilities,and all other materials and things associated
with or required for the ownership,operation. and maintenance of the Town Utility System by the
City.
(d) Easements. In accordance with subsection (a), City' will have the Right to Operate
new water, water reclamation, and sewer infrastructure within any easements, rights-of-way, and
utility encroachments.Any new easement required to expand the Town Utility System shall be the
responsibility of the City except as provided in this Agreement.
(e) Effect of Transfer. Upon Transfer, the City shall own, operate, and maintain the
Town Utility System. The current Town water customers will become customers of the City. The
City shall assume billing for the Town Utility System by June 30, 2024.
(f) State Forms or Applications Required. The Town and City agree to execute any
North Carolina Department of Environmental Quality forms or any other applications,
permissions, etc., required to transfer or assign any necessary permits for the operation and
maintenance of the Town Utility System.
(g) Interlocal Agreement for the Sanford Water Treatment Plant Expansion.As a result
of this Merger, and pursuant to Section 13 of the Interlocal Agreement for the Sanford Water
Treatment Plant Expansion, the Town hereby transfers and the City hereby accepts all of the
Town's rights and obligations under that agreement.
6
PPAB 9694751%

Section 3.03. Offers of Employment. The shall make an offer of employment to all
City
employees of the Town who are employed as of the Transfer Date and who are eligible under this
subsection. Employment with the City may begin on or after August 2, 2023, but before June 30,
2024,at the discretion of the City.To be eligible for an offer of employment,a Full-Time Employee
("FTE") must serve in a current role with the Town which will be affected by the conveyance of
the Town Utility System to the City.An employee who is paid in whole or in part out of the Town's
utility enterprise fund is assumed to be"affected." Prior to the Transfer Date,the Town will provide
to the City a list of employees who have been affected by the conveyance. If accepted by the FTE,
employment with the City shall be effective immediately. Offers of employment shall be on terms
and conditions and include benefits and perquisites substantially' equal to those of current City
employees in similar positions. Leave accumulation shall be calculated with length of service to
the Town credited as length of service with the City, and transferred FTEs shall have the right to
participate in all City employee benefit programs on equal terms with other City employees. Any
FTE offered employment with the City shall retain previously accrued sick leave and vacation
leave. In the event that the Transfer contemplated by this Agreement is not consummated,any'offer
of employment shall be void and of no further force or effect.
Section 3.04. System Integration. The Parties agree to work collaboratively to resolve any
system integration issues. Unless otherwise agreed to. the Town Utility System infrastructure,
meters, software. billing & accounts, customer service, and other systems will be integrated with
the City Utility System no later than June 30. 2024.
Section 3.05. Information, Records, and Assets Transferred by the Town. The list of
information, records,and assets to be transferred by the Town to the City is to be set out in Exhibit
B, "List of Assets to be Transferred." and Exhibit C. "List of Documents and Records to be
Transferred,"within thirty (30)days of the Effective Date.
Section 3.06. Allocation of Costs and Payments. All of the Town Utility System's deposits,
reserves, accounts receivable, accounts payable, and cash on hand will be transferred and/or
assigned to the City. The Town may pay' any' amounts remaining as current accounts payable from
the Town Utility System reserve funds prior to the Transfer Date. Cost of transfer from Pittsboro
to Sanford will be paid by' Sanford and recovered through rates, fees, and charges for new and
existing customers of the Town Utility' System and from transferred reserve funds from Pittsboro.
Section 3.07. Recovery in Pending Litigation. If there is a monetary recovery in the litigation
Town of Pittsboro v. 3M Company et al, 2:23-cv-01150-RMG, pending in the United States
District Court for the District of South Carolina. then that portion of the recovery that can
reasonably be attributed to past costs and damages incurred by Town shall be credited against the
City's debt service obligations attributable to the Utility' Services for the Town Service Area, and
any portion of the recovery that can reasonably be attributed to the cost of future capital,operation,
or maintenance of the Merged System shall be credited to the Merged System.
Section 3.08. No General Fund Liability. It is the intent of the Parties that after the completion
of the Transfer of all assets and employees from the Town to the City, there shall be no residual
liability to the Town's General Fund. During the period of Transition, Pittsboro will retain liability
for, and maintain insurance coverage for. all assets and employees until the time of transfer, and
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PPAB 969475 I%

Sanford will accept liability for and NA,ill procure insurance coverage for, all transferred assets and
employees at the time of transfer.
ARTICLE 4
CAPITAL IMPROVEMENTS
Section 4.01. Phase 1 Capital Improvements. The Parties agree that the following are capital
improvements that must be completed by Sanford:
(a) Force Main from Pittsboro to Sanford ("Force Main"). The project undertaken by
the Town and City to design,permit,and construct a 2 Million Gallons per Day(MGD)force main
transmission line running along US Highway 15-501 from the Town to the City in order to convey
the Town's wastewater.
(b) Sanford Water Treatment Plan Upgrade ("Expanded WFF"). The expansion of the
Sanford Water Filtration Facility will be expanded from 12 MGD capacity to 30 MGD capacity.
(c) Water Transmission from Triangle Innovation Point to Pittsboro ("Transmission
Line").A water transmission line running from Triangle Innovation Point to Pittsboro.
Section 4.02. Phase 2 Capital Improvements. The Parties agree that the following capital
improvements, or such other capital improvements that will provide equivalent capacity, are the
planned capital improvements following Phase 1:
(a) Force Main Upgrade to 5 MGD ("Force Main Upgrade"). An upgrade of the Force
Main to 5 MGD force main.
(b) Expansion or Replacement of BBWRC. The expansion or replacement of the Big
Buffalo Water Reclamation Center ("BBWRC") for additional wastewater capacity ('`BBWRC
Improvements").
Section 4.03. Commitment to Seek Funding.The City will take reasonable and necessary steps
to seek funding. which includes grants. State loans, and other forms of contributions other than
rates, for the Capital Improvements listed in Sections 4.01 and 4.02. Nothing in this section shall
be interpreted to limit the City's authority to set rates, as set out in Section 5.02.
ARTICLE 5
RATES AND RATE PARITY
Section 5.01. Utility Rates. One goal of this Merger is to achieve rate parity between the Town
and all other constituent pieces of the Merged System. However, it is also the intent of this Merger
that the City's rate payers will not be required to subsidize the operating costs or known capital
improvement costs of the Town Utility System,and the Town's rate payers will not be required to
subsidize the operating costs or known capital improvement costs of the City Utility System. To
this end,the Parties acknowledge and agree that the rates and system development fees charged to
the customers within the Town limits shall be set at a level sufficient to support the construction,
operation, and maintenance of the Town Utility System and the Phase 1 and Phase 2 Capital
Improvements for the Town Utility System. as listed in Article 4.
8
PPAB 9694751%I

Section 5.02. Authority to Set Rates. From and after the Effective Date, all rates,charges, fees,
deposit rates, penalties. and system development fees associated with the Merged System shall be
set by the City. The City will set and charge rates in accordance with operation and maintenance
expenses, routine capital expenditures. debt service expense, and necessary reserve funding.
Notwithstanding the foregoing, except for system development fees, the rates, charges, fees,
deposit rates. and penalties shall be no higher than those set by the Town in its FY2024 Budget
Ordinance. The Town acknowledges that the City intends to retain the system development fee for
residential ''Vs"Meter Size at$8,000 for water and$7,500 for sewer for a combined total of$15,500.
Exhibit F provides the intended initial system development fees for the Pittsboro Service Area for
all Meter Sizes.
Section 5.03. Rate,Fees,Penalties,and Charges Consultation.The City agrees to consult with
the Town about rates (I) prior to any increase in rates, fees, penalties, or charges: and (2) at least
once annually. During that consultation. the Town shall have the option to pay to Sanford, as by
law provided, the costs associated with capital improvements, maintenance, operations, or any
other Town Utility System needs that would otherwise require an increase to rates, charges, and
fees.
Section 5.04. Rate Parity. The date that Rate Parity is achieved will be impacted by a number of
factors, including, but not limited to. the amount of debt needed to pay for capital improvements
and the amount of revenue generated by increased consumption, economies of scale, and grants
and other funding opportunities. The following are the conditions that describe when rate parity
will be achieved ("Date of Rate Parity"):
(a) If all water service provided to Pittsboro is being treated in the Expanded WFF, the
portion of rates that reflect the cost of treating water and wastewater shall be in parity once the
Phase 1 Capital Improvements are completed and operational. If some portion of water provided
to Pittsboro is being provided by the Pittsboro Haw River Water Treatment Plant,any variance will
be reflective of the difference in cost between providing water from the Pittsboro Haw River Water
Treatment Plant and the Expanded WFF.
(b) The portion of rates that reflect the cost of repairing or upgrading the existing Town
Utility System shall be in parity once the system has been assessed and any necessary repairs and
upgrades made. By June I of each year. the City shall provide the Town with a then-current list of
identified Town Utility System deficiencies, if any. and the estimated cost and schedule for
repairing or upgrading the Town Utility System.
(c) The portion of rates and system development fees for capital projects shall be in
parity once Sanford no longer has debt service obligations for the Phase 1 and Phase 2 Capital
Improvements.
Section 5.05. Pittsboro's Haw River Water Treatment Plant. If Sanford decommissions
Pittsboro's Haw River Water Treatment Plant,the Parties will seek to apply any third-party funding
that was previously dedicated to upgrading or expanding the Haw River Water Treatment Plant to
Pittsboro's debt associated with the Phase 1 or Phase 2 Capital Improvements,as permitted by law.
If Sanford sells Pittsboro's Haw River Water Treatment Plant, eighty-seven and a half percent
(87.5%) of the proceeds must be applied to Pittsboro's debt associated with the Phase 1 or Phase
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PPAB 9694751%1

2 Capital Improvements,and the remaining twelve and a half percent(12.5%)may be used for the
Merged System at Sanford's discretion.
ARTICLE 6
GROWTH AND EXPANSION
Section 6.01. Authority to Operate, Maintain, and Expand. Unless otherwise stated in this
Agreement, the City shall have sole authority and discretion as provided by law to operate,
maintain,and expand the Merged System. set rates. fees, penalties, and charges.
Section 6.02. No Interbasin Transfer Contemplated. The Parties do not contemplate the need
for an lnterbasin Transfer Certificate at this time. The Parties agree to cooperate and pursue an
lnterbasin Transfer Certificate if one is needed in the future.
Section 6.03. Growth Management. Land use approvals by the Town must include a utility
service review for decision by the City. Upon Transfer, all future requests for new service
connections will be made to the City for the City's review and decision. If a request for new service
connections would, if granted. require a larger allocation of capacity than is available according to
Section 6.05,the request will only be granted where the requesting developer or land use applicant
pays for the capital improvements needed to meet the additional capacity needs.
Section 6.04. Annexation Required. If a request for new service connections is for a property
that is located within the area defined as"Town Service Area" in Exhibit D,the City's approval of
the new request for service connections for the property shall be conditioned upon the property
being annexed into the Town.
Section 6.05. Growth.The City will use the follow ing phases for wastewater and water in order
to make decisions about requests for new service.
(a) Wastewater Allocation Growth.
(i) From the date that (a) funding sources for the actual funding required for
the Force Main.currently estimated in Exhibit E is secured;(b)the Force Main is complete;
and(c)the Force Main is operational,the Town will have access to a 2,000,000 gallons per
day (2.0 MGD)of wastewater treatment capacity;
(ii) From the date that (a) funding sources for the actual funding required for
the Force Main Upgrade and the BBWRC Improvements,currently estimated in Exhibit E,
are secured; (b) the Force Main Upgrade and BBWRC Improvements are complete; and
(c)the Force Main Upgrade and BBWRC Improvements are operational,the Town's access
to wastewater treatment capacity will increase with additional 3,000,000 gallons per day
(3.0 MGD)of wastewater treatment capacity; and
(iii) On the Date of Rate Parity and thereafter, the City will provide additional
wastewater supply capacity as necessary to accommodate new growth and development
within the corporate limits of the Town and land annexed into the Town at a growth rate
set based on the same formula and methodology used to set Sanford's growth rate (the
`Wastewater Growth Rate").
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PPAB 9694751%I

1
(b) Water
Allocation Growth.
(i) From and after the date that (a) funding sources for the actual funding
required for the Expanded WFF and Transmission Line, currently estimated in Exhibit E,
are secured; (b) the Expanded WFF and Transmission Line are completed; and (c) the
Expanded WFF and Transmission Line are operational. the City will provide access to
3,000,000 gallons per day (3.0 MGD)of water treatment capacity to the Town.
(ii) On the Date of Rate Parity and thereafter, the City will provide additional
water supply capacity as necessary to accommodate new growth and development within
the corporate limits of the Town and land annexed into the Town at a growth rate set based
on the same formula and methodology used to set Sanford's growth rate (the "Water
Growth Rate").
(c) The Growth Rates are a projection for planning purposes and not a guarantee of
specific capacity. If the Town's growth demands more capacity for water or wastewater than that
set out in Section 6.05(a)(ii)and (b)(i), respectively, prior to the Date of Rate Parity, the City and
Town will consult about the need to plan for and have access to additional capacity.
Section 6.06. Growth Levels Subject to Modification. The Growth Rate stated in Section
6.05(a)(iii) & 6.05(b)(ii) are subject to modification by the City if: (a) problems are encountered
with the implementation of capital improvements of Sections 4.01 and 4.02; (b)there are changes
in the Town's continued access to capacity allocations if such changes are outside of the City's
control;or(c)there are reductions or failures of pressure or supply due to main supply line breaks,
power failures, floods, fire and the use of water to fight fires, earthquakes, water conservation
measures and other causes beyond the City's control for such reasonable period of time as may be
necessary to restore normal service.
Section 6.07. Other Agreements Permitted.Nothing in this Agreement restricts the Parties from
agreeing to additional water and/or wastewater service agreements outside of this Agreement or
relying on additional water and/or wastewater service agreements to meet the Town's water and
wastewater capacity needs.
Section 6.08. First Come, First Served. The City intends to allocate wastewater within the
Pittsboro Service Area on a "first come. first served" basis. Notwithstanding the foregoing. until
the Wastewater Treatment Facility Expansion is under construction, the City has the right to
commit to serve the wastewater flow projections through 2031 according to the schedule attached
hereto as Exhibit G, with wastewater service to such projects only upon a land use approval by the
Town. Once the Force Main Upgrade is under construction, City policies regarding utility
extensions shall apply.
Section 6.09. Revisions to the Growth Rate. Once every two years, the City may revise the
Growth Rate projected for the previous two years if the Town's residential and economic
development needs do not grow at the expected rate of projection. Industry growth will be
evaluated on a case-by-case basis.
Section 6.10. City Ordinances, Policies, and Standards Apply. Pittsboro shall adopt such
ordinances as are reasonably necessary to regulate the proper use of the Town Utility System and
11
PPAB 969475I I

any extensions thereof by the customers and users within the jurisdiction of Pittsboro. Said
ordinances shall be reviewed and approved by Sanford prior to adoption by Pittsboro, and further
grant to Sanford all administrative. permitting, regulatory, and enforcement authority necessary
for the regulation, operation. maintenance, and improvement of the Town Utility System serving
the Town Service Area limits of Pittsboro. Pittsboro shall update such ordinances as necessary to
have the same or similar provisions as in Sanford's ordinances regarding the Merged System.
Sanford and Pittsboro shall each have equal authority to enforce any Town utility related ordinance
or regulation.
ARTICLE 7
GENERAL TERMS
Section 7.01. Specific Performance in Event of Default. The Parties acknowledge that
monetary damages would not fully compensate either Party in the event of any breach or Default
of this Agreement. The Parties therefore agree that in the event of a breach or Default by either
Party, the other Party shall, in addition to seeking damages, be entitled to seek and obtain the
specific performance of the defaulting Party's obligations hereunder.
Section 7.02. Term of the Agreement. This Agreement shall be perpetual. The Town and the
City hereby agree that such perpetual duration is reasonable and necessary in light of the purposes
of this Agreement. If for any reason a court of competent jurisdiction rules in a final decision that
may not be appealed that a perpetual term to this Agreement is unlawful,then this Agreement shall
have a term of ninety-nine (99) years (the "Term"). If the Term of this Agreement is so limited to
ninety-nine(99) years. the expiration of the Term shall only affect the agreements hereunder with
respect to events and performances that occur after the expiration date of such term, and shall not
affect the existence or validity of any transfer, conveyance, undertaking, liability, or other action
or right that occurred or arose prior to the expiration date.
Section 7.03. Cooperation of the Parties. The Town and the City agree to cooperate, fully,
effectively, and efficiently with each other to accomplish the intent and purposes of this
Agreement, execute all supplementary documents necessary to enforce its terms, and to take all
additional actions deemed necessary and appropriate so as to give full force and effect to the terms,
conditions, and intent of this Agreement. Neither Party shall unreasonably withhold or delay
providing such cooperation.The Town further agrees to provide to the City, if requested, all plans,
as-built drawings,financial information,and all other information,documents,materials,and other
things in its possession or control associated with the Town Utility System, and the performance
of the terms and conditions set forth herein.
Section 7.04. Dispute Resolution. In the event of conflict or Default that might arise, the Parties
involved agree to informally and formally communicate to resolve the conflict. If this
communication is not successful in resolving the conflict, the matter will be presented to the City
Manager of Sanford and the Town Manager of Pittsboro for consultation.
Section 7.05. Disposition of Property at Termination. Upon termination of this Agreement
prior to the Transfer Date, all real property that is subject to this Agreement reverts to the Party
that owned it at the time this Agreement was executed. Upon termination of this Agreement after
the Transfer Date, all real property that is subject to this Agreement reverts to the City.
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PPAB 969475 I I

Section 7.06. Method of Termination. This Agreement may be terminated only by the mutual
consent of all Parties participating in this Agreement.
Section 7.07. Disposition of Property at Expiration.All property, real or personal, shall remain
with the City upon termination or expiration of this Agreement.
Section 7.08. Force Majeure. A Force Majeure is defined as any event arising from causes
beyond the reasonable control of the Parties. It shall not be considered a breach of this Agreement
or an event of Default, and Parties shall not be responsible for an inability to perform or for any
delays, damages. costs, expenses, liabilities, or other consequences that may arise as a result of
Force Majeure.
Section 7.09. Entire Agreement. 1 his Agreement constitutes the entire understanding between
the Parties and supersedes all prior and independent agreements between the Parties covering the
subject matter hereof.
Section 7.10. Third-Party Beneficiaries. The existing or future users of the Merged Utility
System shall not be deemed to be third-party beneficiaries of this Agreement and neither the Town
nor the City shall have any obligation to them, nor shall they be entitled to any rights hereunder.
Section 7.11. Amendments. Pursuant to N.C. Gen. Stat. § I60A-464 this Agreement may be
amended or terminated b) mutual agreement between the Parties. Termination shall not affect the
validity of any transfers of property or assets previously completed unless mutually agreed
otherwise between the Parties.
Section 7.12. Implementation. The City and Town Managers are authorized to determine
implementation details not covered in this Agreement so long as such determinations substantially
conform with the material terms of this Agreement and applicable law.
Section 7.13. Authorization. Each Party certifies that all appropriate steps to legally enter into
this Agreement have been taken, including approval by the appropriate governing body. Moreover,
each Party certifies that all laws, rules. and regulations as well as any local governmental rules
were followed with regard to approval of this Agreement and that this Agreement meets all
standards for governmental agreements.
Section 7.14. Section Headings.The section headings in this Agreement are for convenience and
ease of reference only. Such headings are not part of this Agreement and are not to be used in
interpreting its provisions.
Section 7.15. Governing Law. This Agreement shall be governed by and interpreted in
accordance with the law of the State of North Carolina.
Section 7.16. Severability. The paragraphs, sections. sentences, clauses, and phrases of this
Agreement are severable. If one or more paragraphs. sections, sentences, clauses, or phrases shall
be declared void, invalid, or otherwise unenforceable for any reason by the valid, final judgment,
or decree of any court of competent jurisdiction, such judgment or decree shall not affect the
remaining provisions of this Agreement.
13
PPAB 9694751%I

Section 7.17. Signatures.This Agreement.together with any amendments or modifications. may
be executed in one or more counterparts, each of which shall be deemed an original and all of
which shall be considered one and the same agreement.
Section 7.18. Notices. Unless specifically provided otherwise by this Agreement, any notice
which a Party is required to or may give to another Party shall be in writing and shall be delivered
or addressed to the other applicable Party at the address below set forth or to such other address as
such Party may from time to time direct by written notice given in the manner herein prescribed.
Such notice or communication shall be deemed to have been given or made when communicated
by personal delivery or by independent courier service or by facsimile or by email with a hard
copy to be delivered by independent courier service by the next business day. All notices to the
Town shall be addressed to:
Town Manager
Town of Pittsboro
635 East Street
P.O. Box 759
Pittsboro, NC 27312
With a copy to the Town Attorney:
Paul S. Messick,Jr.
Gunn & Messick, PLLC
90 West Salisbury Street
P. O. Box 880
Pittsboro, NC 27312
Telephone [phone]
Facsimile: [phone]
Electronic Mail: pmriigunnmessick.com
All notices to the City shall be addressed to:
City Manager
City of Sanford
225 E Weatherspoon Street
P.O. BOX 3729
Sanford, NC 27331
With a copy to the City Attorney:
Susan Patterson
City Attorney
225 E Weatherspoon Street
P.O. BOX 3729
Sanford, NC 27331
Phone: [phone]
Electronic Mail: susan.patterson a sanfordnc.net
14
PPAB 969475 I%I

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
15
PPAB 9694751.

IN WITNESS WHEREOF,the Parties hereto. acting by and through their duly authorized
representatives pursuant to the resolutions of their respective governing bodies. have caused this
Agreement to be executed as of the day and year first above written.
ATTEST: C• 1 - .nford
� tas
City erk Rebecca W, ho Sal IV Mayor
[SEAL]
ATTEST: Town of Pittsboro
(ittilA,LUI L 8 •
By: &le ),j at,
°AI
"Th
Town Clerk Cindy Per . Mayor
t _
. [SEAL]
"This instrument has been preaudited in the manner required by the Local Government Budget
and Fiscal Control Act."
Name:13(..tpt r, (etl1
Title: Civics'-tow Scw,ces Di(zeal.
"This instrument has been preaudited in the manner required by the Local Government Budget
and Fiscal Control Act."
ge--4 Cis
Name: r - ems t.1 . tit cOc.410.. v\
Title: 'F.nance D'trec.i-or
APPROV _D AS TO FORM APPROVED AS TO FORM
__4(1 . L.
Paul S. Messick. Jr. Susan Patterson
Town Attorney. Town of Pittsboro City Attorney, City of Sanford
16
PP:1B 9694751\1

EXHIBIT A
DEFINITIONS
BBWRC Improvements means the expansion or replacement of the Big Buffalo Water
Reclamation Center for additional capacity.
City shall mean the City of Sanford. a municipal corporation of the State of North Carolina.
City Utility SN stem means the water. water reclamation. and sewer systems owned, operated. and
maintained by the City within and outside the City's corporate limits.
Default shall mean the failure, refusal. or inability of a Party to meet an obligation set out in this
Agreement.
FTE shall mean a Full-Time Employee of the Town who is employed as of the Transfer Date and
is eligible for an offer of employment from the City if the individual serves in a current role with
the Town who will be affected by the conveyance of the Town Utility System to the City.
Force Main means the project undertaken by the Town and City to design, permit, and construct a
2 Million Gallons per Day (MGD) force main transmission line running along US Highway 15-
501 from the Town to the City' in order to convey the Town's wastewater.
Force Main Upgrade means an upgrade of the Force Main to 5 MGD force main.
Interbasin Transfer Certificate means the certificate required by N.C. Gen. Stat. Ann. § Ch. 143,
art. 21. Pt. 2A.
Parties shall mean the City of Sanford and the Town of Pittsboro. When used in the singular.
"Party" shall refer to only the relevant party in the context of this Agreement.
Town shall mean the Town of Pittsboro. a municipal corporation of the State of North Carolina.
Town Utility System means the water.water reclamation,and sewer systems owned,operated,and
maintained by the Town within and outside the Town's corporate limits.
Transfer shall mean the Town's transfer to the City of all real and personal property composing
the Town Utility System. including, without limitation, all collection and distribution system
infrastructure, all physical infrastructure, real and personal property, cash assets, relevant
documents and records, and existing and future customer accounts associated with the Town
Utility System.
Transfer Date shall mean the date on v.hich the Transfer occurs. The Transfer Date shall be no
later than June 30, 2024.
Utility Services means water. reclaimed water, and sewer services.
17
PPAB 9694751%

EXHIBIT B
LIST OF ASSETS TO BE TRANSFERRED
18
PPAB 9694751'.I

EXHIBIT C
LIST OF DOCUMENTS AND RECORDS TO BE TRANSFERRED
19
PPAB 9694751%I

EXHIBIT D
TOWN SERVICE AREA
20
PPAB 969475I%I

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_� { - GIS Dab:7I52023

EXHIBIT E
PHASE 1 & PHASE 2 CAPITAL IMPROVEMENTS
Phase 1 Capital Improvements. The Parties agree that the following are capital impro‘ements
that must be completed by Sanford:
(a) Force Main from Pittsboro to Sanford ("Force Main"). The project undertaken by
the Town and City to design.permit,and construct a 2 Million Gallons per Day(MGD)force main
transmission line running along US Highway 15-501 from the Town to the City in order to convey
the Town's wastewater. The estimated cost of this improvement is $60,000,000.00.
(b) Sanford Water Treatment Plan Upgrade ("Expanded WFF"). The expansion of the
Sanford Water Filtration Facility will be expanded from 12 MGD capacity to 30 MGD capacity.
The estimated cost of 3 MGD of treatment capacity for the Town is$37,000.000.00.
(c) Water Transmission from Triangle Innovation Point to Pittsboro ("Transmission
Line"). A water transmission line running from Triangle Innovation Point to Pittsboro. The
estimated cost of this improvement is $51.000,000.00.
Phase 2 Capital Improvements. The Parties agree that the following capital improvements, or
such other capital improvements that will provide equivalent capacity, are the planned capital
improvements following Phase 1:
(a) Force Main Upgrade to 5 MGD ("Force Main Upgrade").An upgrade of the Force
Main to 5 MGD force main. The estimated cost of this improvement is $8,300,000.00.
(b) Expansion or Replacement of BBWRC. The expansion or replacement of the Big
Buffalo Water Reclamation Center ("BBWRC") for additional wastewater capacity ("BBWRC
Improvements"). The estimated cost of an additional 3MGD of treatment capacity for the Town is
$75,000.000.00.
21
PPAB 9694751%1

1
EXHIBIT F
PITTSBORO SERVICE AREA INITIAL SYSTEM DEVELOPMENT FEES
S stem Develo s ment Fees l er Meter Size
ticn ice Water Wastewater Combined
Unit
SDF SDF SDF
Equivalent
1/2" 1.0 $8,000 $7,500 S15,500
3/4" 1.0 S8,000 S7,500 S 15,500
1" 1.7 S 13,333 $12,500 $25,833
1-1/2" 3'3 $26,667 $25,000 $51,667
2" 5'3 $42,667 $40,000 $82,667
3„ 16.7 $133,333 $125,000 $258,333
33.3 4" $266,667 $250,000 $516,667
53.3 6" S426,667 S400,000 $826,667
93.3
8„ S746,667 S700,000 $1,446,667
10" 183.3 $1,466,667 $1,375,000 $2,841,667
22
PPAB 969475 I%I

EXHIBIT G
CPI'S WASTEWATER FLOW PROJECTIONS
23
PPAB 9694751 x 1

Chatham Park Sewer Allocation&Chatham Park Water Recovery Center Capacity Planning Summary(July 2023 Sanfordv2)
0110.0000 100.W.W.I l0t CO wwwl De..wlltht 01t... D•i.':...dn Ilw WNW Owed 0n 03 OIOMd.w1 W O..Y.w0.1.It 00O/0.dtw.w Ow M0.!I.m00.M MC Al 1I I I .(C.!Una.),or•.0..w•.i0•n0.1
C en. ww lrlw.1 ton 0w00.1 el Wm...ins, 11.100.110 C.lI.10 1.1 -
1110/1J0M00010w.000•delAl.WW1 D....,to, 10000 I.Mq. 1011 1021 .e.1 I015 Mt 1021 10t/ 11 0010 ,.„
.. w.M.uw l 210 M 100
Are.W.11 l.•w l 110 04100 .-
7.1 WmWOkw/i _ _ 210 _�- — ____- AI l00 - - _
we Wes l0•w Mlx
1 110 - - - -.._
MS
MAW
..A•M MAT•wet 2 In
...A...b..w Maw 1 US ••.tl
.
r 1I Olt WOO Ch00.I1001 MOW le MO
.weft 12 2WIC*1.1.1I.Chow.IY 00 IP
w I 1100000
...Ia."
IL C tY•Idt Coy..0*I 110M NJ OM
lwtnn 11 OIC WOW C.y..•Ruse I 210,12 _ 1000
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2023-40
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANFORD, NORTH
CAROLINA, APPROVING AN INTERLOCAL AGREEMENT TO MERGE THE WATER,
RECLAIMED WATER, AND SEWER SYSTEMS OF THE TOWN OF PITTSBORO AND
THE CITY OF SANFORD, AND CERTAIN AMENDMENTS TO AGREEMENTS WITH
CHATHAM PARK INVESTORS LLC ASSUMED PURSUANT TO THE MERGER
WHEREAS, the City of Sanford, North Carolina (the "City"), a validly existing municipal
corporation of the State of North Carolina,existing as such under and by virtue of the Constitution,
statutes, and laws of the State of North Carolina, owns, operates, and maintains water, reclaimed
water,and sewer utility systems within and outside its corporate limits("City Utility System"); and
WHEREAS, the Town of Pittsboro, North Carolina, (the "Town"), a validly existing
municipal corporation of the State, existing as such under and by virtue of the Constitution,
statutes, and laws of North Carolina, owns, operates, and maintains water, reclaimed water, and
sewer utility systems within and outside its corporate limits("Town Utility System"); and
WHEREAS, the City and Town have the power, pursuant to the General Statutes of North
Carolina to (1) enter into interlocal agreements with other units of local government to execute
any undertaking and (2) determine the reasonable duration of such interlocal agreements; and
WHEREAS, N.C.G.S. 160A-274 authorizes any local government unit to exchange with,
lease to, lease from, sell to, or purchase from any other governmental unit, with or without
consideration and upon such terms and conditions as it deems wise, any interest in real or personal
property; and
WHEREAS, it is in the best interest of the City to enter into an interlocal agreement to
merge the Town Utility System with the City Utility System (the "Merger Agreement") with, in
order (a) to provide economies of scale with a larger system to the customers that receive the
Town's and the City's water, reclaimed water, and sewer services ("Utility Services"); and (b) to
enhance the ability of the merged systems to provide economic development assistance to the
region; and
WHEREAS, the Town will transfer to the City all real and personal property composing the
Town Utility System, including, without limitation, all collection and distribution system
infrastructure, all physical infrastructure, real and personal property, cash assets, relevant
documents and records, customer accounts, and any other items associated with the Town Utility
System; and
WHEREAS, all rates, charges, fees, deposit rates, penalties, and system development fees
associated with the merged system will be set by the City, and the City's rate payers will not be
required to subsidize the operating costs or known capital improvement costs of the Town Utility
System; and
WHEREAS, the City desires to adopt the current rates and fees set by the Town; and
WHEREAS, pursuant to the Merger Agreement. the City will assume certain contracts,
agreements, and letters of intent previously entered into by the Town and Chatham Park Investors
LLC, a North Carolina limited liability company ("CPI'): and

2023-40
WHEREAS, the City and CM agree that there are certain amendments that need to be made
to the contracts, agreements, and letters of intent previously entered into by the Town and CPI,
specifically,a Master Services Agreement,dated August 10,2020,regarding the"Chatham Park
Water Recovery Center ("CPWRC") (the "Master Services Agreement"), and a Design
Agreement dated January 12, 2022 regarding the design costs for expansion of City's water
treatment plant (the "Design Agreement"), and the City and CPI have determined it is in the
best interest of both parties to memorialize the intent to make these certain amendments to the
Master Services Agreement and Design Agreement in a binding letter of intent concurrently
with the Merger Agreement (the "Letter of Intent"), with a definitive agreement to be entered
into following the merger; and
WHEREAS, the City and CPI also agree that CPI will provide certain financial support
to the City as may be needed in order to ensure the Merger Agreement will not negatively
impact the current City Utility System customers (the "Wastewater Capacity Com►nitment
Agreement"):
WHEREAS, the Merger Agreement, Letter of Intent,and Wastewater Capacity Agreements
(altogether, the "Agreements") have been brought before the City Council for review, and the City
Council proposes to review and approve the Agreements to effectuate the proposed merger by the
Agreements; and
WHEREAS, it appears that the Agreements are in an appropriate form and are an
appropriate instrument for the purposes intended;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SANFORD, NORTH CAROLINA, AS FOLLOWS:
Section 1. Ratification of the Agreements. All actions of the Mayor, the City
Manager, the Financial Services Director, the City Clerk, the City Attorney, and their respective
designees, whether previously or hereinafter taken, in effectuating the proposed merger and
agreements to amend certain contracts and agreements assumed pursuant to the merger are
hereby approved, ratified, and authorized pursuant to and in accordance with the transactions
contemplated by the Agreements.
Section 2. Authorization to Execute the Agreements. The City hereby approves the
merger in accordance with the terms of the Merger Agreement, which will be a valid, legal, and
binding obligation of the City in accordance with its terms. The form and content of the
Agreements are hereby in all respects authorized, approved, and confirmed, and the Mayor, the
City Clerk and the City Manager and their respective designees are hereby authorized,
empowered, and directed, individually and collectively, to execute and deliver the Agreements,
including necessary counterparts, in substantially the form and content presented to the City
Council, but with such changes, modifications, additions, or deletions therein as they deem
necessary, desirable, or appropriate, their execution thereof to constitute conclusive evidence of
the City's approval of any and all changes, modifications, additions, or deletions therein from the
form and content of the Agreements presented to the City Council. From and after the execution
and delivery of the Agreements, the Mayor, the City Clerk, the City Manager, and the Financial
Services Director of the City, individually and collectively, are hereby authorized, empowered,
and directed, individually and collectively, to do all such acts and things and to execute all such
2

2023-40
documents as may be necessary to carry out and comply with the provisions of the Agreements
as executed.
Section 3. City Representative. The Mayor, the City Manager, Public Services and
Economic Opportunity Director, and the Financial Services Director of the City, individually and
collectively, are each hereby designated as the City's representative to act on behalf of the City
in connection with the transactions contemplated by the Agreements. The City's representative
and/or designee or designees are in all respects authorized on behalf of the City to supply all
information pertaining to the City in the transactions contemplated by the Agreements. The
City's representatives or their respective designees are hereby authorized, empowered, and
directed, individually and collectively, to do any and all other acts and to execute any and all
other documents, which they, in their discretion, deem necessary and appropriate to consummate
the transactions contemplated by the Agreements or as they deem necessary or appropriate to
implement and carry out the intent and purposes of this Resolution and the on-going
administration of the Agreements.
Section 4. Rates and Fees Adopted. The City hereby adopts the rates and fee
schedules that have been previously set by the Town. The City's representatives or their
respective designees are hereby authorized, empowered, and directed, individually and
collectively, to do any and all other acts and to execute any and all other documents, which they,
in their discretion, deem necessary and appropriate to bill and collect the rates and fees.
Section S. Severability. If any section, phrase, or provision of this Resolution is for
any reason declared to be invalid, such declaration will not affect the validity of the remainder of
the sections, phrases, or provisions of this Resolution.
Section 6. Repealer. All motions, orders, resolutions, and parts thereof, in conflict
herewith are hereby repealed.
Section 7. Effective Date. This Resolution is effective on the date of its adoption.
3

2023-40
City of Sanford
K44.. '
y: ' cca Wyhof Salmon
Lai1L64C"j,A L)
on ie D. Davis
City Clerk
City of Sanford, North Carolina
I, Bonnie D. Davis, City Clerk of the City of Sanford, North Carolina, DO HEREBY CERTIFY
that the foregoing is a true and exact copy of a resolution entitled "RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANFORD, NORTH CAROLINA, APPROVING AN INTERLOCAL
AGREEMENT TO MERGE THE WATER, RECLAIMED WATER, AND SEWER SYSTEMS OF THE
TOWN OF PITTSBORO AND THE CITY OF SANFORD, AND CERTAIN AMENDMENTS TO
AGREEMENTS WITH CHATHAM PARK INVESTORS LLC ASSUMED PURSUANT TO THE MERGER"
duly adopted by the City Council of the City of Sanford, North Carolina, at a meeting held on the
1st day g of August, 2023.
WITNESS my hand and the corporate seal of the City of Sanford, North Carolina, this the
1st day of August, 2023.
LLux_
(SEAL) B nnie D. Davis
City Clerk
City of Sanford, North Carolina
4

DocuSign Envelope ID:D1A10B4D-6A44-4540-A799-BD01202873C2 .,,,, w
a"`SWF 4ss
x : 4 4
ROY COOPER
Governs * +
ELIZABETH S.BISER
Secretary
RICHARD E.ROGERS,JR. NORTH CAROLINA
DireCtOr Envtravnental sty
February 20,2023
Hazen Blodgett III,Town Manager
Town of Pittsboro
635 East Street
Pittsboro, North Carolina 27312-0759
Subject: Permit No.WQCS00146
Pittsboro Collection System
Chatham County
Dear Mr.Blodgett:
In accordance with your application received December 9,2020,and the additional information received February 1,2023,
we are forwarding herewith Permit No.WQCS00146,dated February 20,2023,to the Town of Pittsboro for the operation
and maintenance of the subject wastewater collection system.
This permit shall be effective from February 20,2023 until January 31,2031 and shall be subject to the conditions and
limitations specified herein. It is your responsibility to thoroughly review this permit. Please pay particular attention to the
monitoring and reporting requirements In this permit and any special conditions.
Changes have been made to the permit. Most of the changes are for clarification purposes,however Condition 1(3)has
been removed.The Department of Environmental Quality(DEQ)believes that condition was included erroneously in
previous permits.It was included based on proposed rulemaking by EPA which was never promulgated and,in the
continued absence of Federal regulations,DEQ lacks authority to include such language in a permit. DEQ will continue to
exercise enforcement discretion when evaluating sanitary sewer overflows that may be considered to be beyond the
reasonable control of the Permittee.A highlighted copy of the permit identifying the changes made is available at:
https://files.nc.Kov/ncdgg/Water%20Quality/Surface%20Water%20Protection/PERCS/WCS%20(Collection%20System)/Up
dated%20W QC5%20Template%2015.05.18%20(h iRhlighted).pdf
For purposes of permitting,the collection system is considered to be any existing or newly installed system extension up
to the wastewater treatment facility property or point of connection with a separately owned sewer system.The
collection system is considered all gravity lines,pump stations,force mains,low pressure sewer systems,STEP systems,
vacuum systems,etc.and associated piping,valves and appurtenances that help to collect,manage and transport
wastewater to a wastewater treatment plant under the Permittee's ownership or maintained and operated by the
Permittee through a perpetual legal agreement.Satellite systems are systems tributary to the Permittee's collection
system but those collection systems are not owned or maintained by the Permittee.The system description provided on
Page 1 of this permit is meant to provide a general idea about the size of the system and may not be all inclusive of the
collection system at the time of permit issuance or afterward.
A discharge of wastewater to the environment from the Permittee's wastewater collection system prior to reaching the
wastewater treatment facilities is referred to herein as a Sanitary Sewer Overflow(S50).The evaluation of enforcement
options after an SSO will be determined considering all relevant information available or requested of the Permittee.
Compliance with all conditions of the permit as well as all statutes and regulations pertaining to the wastewater collection
system must be maintained or appropriate enforcement actions may be taken as noted in Condition VI(2).
If you have an NPDES permit or permits,please be aware of independent NPDES SSO reporting requirements(see 40 CFR
122.41(I)). Please also be aware that NPDES permittees must electronically report compliance monitoring data,including
Sewer Overflow/Bypass Event Reports,starting December 21,2025(or later if there is an EPA-approved alternative date
(see 40 CFR 127.24(e)or(f)).Your WQCS permit does not alter or modify any NPDES permit requirements.

DocuSign Envelope ID:D1A10B4D-6A44-4540•A799-BD01202873C2
Pittsboro Collection System
Permit No.WQCS00146
A reportable SSO is an S50 greater than 1,000 gallons to the ground or an SSO of any amount that reaches surface water
(including through ditches,storm drains, etc.). Reporting requirements including the required verbal report and written
report to the appropriate regional office are referenced in Condition IV(2). Form CS-SSO can be downloaded from the SS0
Reporting area at:
https://files.nc.kov/ncdeq/Water%20Quality/Surface%20Water%20Protection/PERCS/WCS%20(SSO%20Documents)/C5-
SSO(2015).pdf
A notice of deficiency(NOD),notice of violation (NOV),civil penalty,and/or a moratorium on the addition of waste to the
system may be issued if adequate justification for an SSO is NOT submitted to the regional office. In order to submit a
claim for justification of an 550,you must use Part II of form CS-SSO with additional documentation as necessary. DWR
staff will review the justification claim and determine if enforcement action is appropriate. Please be advised that the
information needed to justify a spill is very comprehensive.
If any parts,requirements,or limitations contained in this permit are unacceptable,you have the right to request an
adjudicatory hearing upon written request within thirty days following the receipt of this permit.This request must be in
the form of a written petition,conforming to Chapter 150E of the North Carolina General Statutes,and filed with the
Office of Administrative Hearings,6714 Mail Service Center,Raleigh,NC 27699-6714. Unless such demands are made,this
permit shall be final and binding.
If you have questions regarding compliance,please contact the appropriate regional office. If you need additional
information concerning this permit, please contact Marquan Martin via email at [e-mail] or via
telephone at(919)707-3613.
Sincerely,
DxU$Ipmd by:
C�t . lt
C464531431614FE...
for Richard E. Rogers,Jr.
Director,Division of Water Resources
by Michael Montebello,
NPDES Branch Chief,Division of Water Resources
ec: Raleigh Regional Office,Water Quality Regional Operations
Laserfiche
Municipal Permitting Unit Files
Maureen Kinney, NC Operators Certification Program i

DocuSign Envelope ID:D1A10B4D-6A444540-A799-BD01202873C2
STATE OF NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
SYSTEM-WIDE COLLECTION 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 the
Town of Pittsboro
WQCsoo146
FOR THE
operation and maintenance of a wastewater collection system consisting of, at the time of permit issuance,
approximately 33 miles of gravity sewer, approximately 8.8 miles of force main, 6 duplex pump stations, and
all associated piping, valves, and appurtenances required to make a complete and operational wastewater
collection system to serve the Town of Pittsboro and any deemed permitted satellite communities pursuant to
the application received December 9, 2020, and the additional information received February 1, 2023, and in
conformity with the documents referenced therein and other supporting data subsequently filed and approved
by the Department of Environmental Quality and considered a part of this permit.
This permit shall be effective from February 20, 2023 until January 31,2031, and shall be subject to the
following specified conditions and limitations:
Pittsboro Collection System Permit No.WQCS00146 Page 3 of 9

DocuSign Envelope ID:D1A10B4D-6A44-4540-A799-BD01202873C2
I. PERFORMANCE STANDARDS
1. The sewage and wastewater collected by this system shall be treated in the properly permitted
Wastewater Treatment Facility identified in the permit application and documented in the Division's
database.
[15A NCAC 02T.0108(b)]
2. The wastewater collection system shall be effectively managed, maintained and operated at all times to
prevent discharge to land or surface waters, and to prevent any contravention of groundwater standards
or surface water standards. In the event that the wastewater collection system fails to perform
satisfactorily, including the creation of nuisance conditions, the Permittee shall take immediate actions as
per the Response Action Plan (Condition 11 (9)), as well as any actions that may be required by the Division
of Water Resources (Division), such as the construction of additional or replacement sewer lines and/or
equipment. [1SA NCAC 02T.0108(b)]
3. The Permittee shall establish by ordinance, inter-local agreement or contract its legal authority to require
new sewers be properly constructed; to ensure proper inspection and testing of sewer mains and service
laterals; to address flows from satellite systems and to take enforcement action as required by Condition I
(4). [G.S. 143-215.9B;G.S. 143-215.1(f)(1)]
4. The Permittee shall develop and implement an educational fats,oils and grease program that shall include
at least semiannual distribution of educational material targeted at both residential and non-residential
users. The Permittee shall also develop and implement an enforceable fats, oils and grease program for
non-residential users under which the Permittee can take enforcement against users who have not
properly installed, operated and maintained grease traps or grease interceptors as directed or otherwise
violated the terms of the enforcement program pertaining to fats,oils and grease. [15A NCAC 02T.0108(b))
5. The Permittee shall adopt and implement a Capital Improvement Plan (CIP) to designate funding for
reinvestment into the wastewater collection system infrastructure.The CIP should address the short-term
needs and long-term "master plan"concepts.The CIP should typically cover a three to five-year period and
include a goal statement, description of the project area, description of the existing facilities, known
deficiencies (over a reasonable period) and forecasted future needs. Cost analysis is integral to the CIP.
[G.S. 143-215.9B]
6. Overflow piping from manholes and pump stations, excluding piping to approved equalization structures,
known or discovered after permit issuance shall be immediately removed or permanently capped. Plugged
or valved emergency pumping connections are allowable for portable pumping or rerouting without
intentionally bypassing the wastewater treatment facility. [15A NCAC 027.0108(b)]
7. The Permittee shall maintain a contingency plan for pump failure at each pump station. If one of the
pumps in a pump station containing multiple pumps fails, the process of repairing or replacing the pump
shall be initiated immediately and the new parts or pump shall be installed as soon as possible. The
permittee shall provide justification for delay in initiating the process for repair or replacement at the
Division's request. If the pump in a simplex pump station serving more than a single building or pump
stations not capable of pumping at a rate of 2.5 times the average daily flow rate with the largest pump
out of service fails, it shall be replaced immediately. [15A NCAC 02T.0305(h)(1))
Pittsboro Collection System Permit No.WQCS00146 Page 4 of 9

DocuSign Envelope ID.D1A10B4D-6A44-4540-A799-BD01202873C2
8. Each pump station shall be clearly and conspicuously posted with a pump station identifier and an
emergency contact telephone number at which an individual who can initiate or perform emergency
service for the wastewater collection system 24 hours per day,seven days per week can be contacted. This
emergency contact telephone number shall be coupled with instructions that the emergency contact
should be called if the visual alarm illuminates, if the audible alarm sounds,or if an emergency is apparent.
[15A NCAC 02T.0305(h)(2)]
9. Pump station sites,equipment,and components shall have restricted access. [15A NCAC 02T.0305(h)(4)]
10. Pump stations that do not employ an automatic polling feature (i.e. routine contact with pump stations
from a central location to check operational status of the communication system) shall have both audible
and visual high water alarms. The alarms shall be weather-proof and placed in a clear and conspicuous
location. Permits issued for the construction of pump stations that included high water alarms in the
description must maintain the alarms even if simple telemetry (i.e. notification of an alarm condition
initiated by the pump station control feature) is installed. [15A NCAC 02T.0305(h)(1)]
11. For all newly constructed, modified and rehabilitated pump stations, all equipment and components-shall
be sealed within a corrosion-resistant coating or encasement to the extent practicable and equivalent to
the minimum design criteria unless the permittee can demonstrate it is not practicable or another form of
corrosion resistance is employed. [1SA NCAC 02T.0108(b)]
II. OPERATION AND MAINTENANCE REQUIREMENTS
1. Upon classification of the collection system by the Water Pollution Control System Operators Certification
Commission (WPCSOCC), the Permittee shall designate and employ a certified operator to be in
responsible charge (ORC) and one or more certified operator(s) to be back-up ORC(s) of the facilities in
accordance with 15A NCAC 8G.0201. The ORC shall visit the system within 24 hours of knowledge of a
bypass, spill, or overflow of wastewater from the system, unless visited by the Back-Up ORC, and shall
comply with all other conditions of 15A NCAC 8G.0204. [15A NCAC 08G.0200 et.seq.]
2. The Permittee shall develop and adhere to a schedule for reviewing all inspection, maintenance,
operational and complaint logs. If the review process results in the identification of any recurring problem
in the wastewater collection system that cannot be resolved in a short time period, the Permittee shall
establish a plan for addressing the problem(s). [15A NCAC 02T.0108(b)]
3. The Permittee shall develop and adhere to a schedule for testing emergency and standby equipment.
[15A NCAC 02T.0108(b)]
The Permittee shall develop and implement a routine pump station inspection and maintenance program
which shall include the following maintenance activities [15A NCAC 02T.0108(b)]:
a. Cleaning and removing debris from the pump station structure,outside perimeter, and wet well;
b. Inspecting and exercising all valves;
c. Inspecting and lubricating pumps and other mechanical equipment;and
d. Verifying the proper operation of the alarms,telemetry system and auxiliary equipment.
4. For each pump station without pump reliability (i.e. simplex pump stations serving more than a single
building or pump stations not capable of pumping at a rate of 2.5 times the average daily flow rate with
Pittsboro Collection System Permit No.WQCS00146 Page 5 of 9

DocuSign Envelope ID: D1A10B4D-6A44-4540-A799-BD01202873C2
the largest pump out of service), at least one fully operational spare pump capable of pumping peak flow
shall be maintained on hand. 115A NCAC 02T.0305(h)(1)(A)]
5. The Permittee shall maintain on hand at least two percent of the number of pumps installed, but no less
than two pumps, that discharge to a pressure sewer and serve a single building, unless the Permittee has
the ability to purchase and install a replacement pump within 24 hours of first knowledge of the simplex
pump failure or within the storage capacity provided in a sewer line extension permit.
[1SA NCAC 02T.0108(b)]
6. Rights-of-way and/or easements shall be properly maintained to allow accessibility to the wastewater
collection system unless the Permittee can demonstrate the ability to gain temporary access in an
emergency situation where existing land-use conditions do not allow the establishment and maintenance
of permanent access. In this case, the Permittee shall continue to observe the lines visually, utilize remote
inspection methods (e.g. CCTV) and use the opportunity of drier conditions to perform further inspections
and necessary maintenance. [15A NCAC 02T.0108(b)]
7. The Permittee shall assess cleaning needs, and develop and implement a program for appropriately
cleaning, whether by hydraulic or mechanical methods, the wastewater collection system. At least 10
percent of the gravity wastewater collection system,selected at the discretion of the ORC,shall be cleaned
each year. Preventative cleaning is not required for sewer lines less than five years old unless inspection
otherwise reveals the need for cleaning or cleaning is required by a sewer line extension permit.
[15A NCAC 02T.0108(b)]
8. The Permittee shall maintain a Response Action Plan that addresses the following items at a minimum
[15A NCAC 02T.0108(b)]:
a. Contact phone numbers for 24-hour response, including weekends and holidays;
b. Response time;
c. Equipment list and spare parts inventory;
d. Access to cleaning equipment;
e. Access to construction crews, contractors and/or engineers;
f. Source(s) of emergency funds;
g. Site restoration and clean up materials;and
h. Post-SSO assessment.
9. The Permittee, or their authorized representative, shall conduct an on-site evaluation for all SSOs as soon
as possible, but if feasible no more than two hours after first knowledge of the SSO. The Permittee shall
document in its 5-day report why it was unable to initially respond to any SSO location within two hours.
[15A NCAC 02T.0108(b)]
10. In the event of an SSO or blockage within the wastewater collection system, the Permittee shall restore
the system operation, remove visible solids and paper, restore any ground area and restore the
surroundings. [15A NCAC 02T.0108(b)]
Pittsboro Collection System Permit No.WQCS00146 Page 6 of 9
� 1

DocuSign Envelope ID:D1A10B4D-6A44-4540-A799-BD01202873C2
III. RECORDS
1. Records shall be maintained to document compliance with Conditions 1(4), 11(2)- 11(4), 11(7)-11(8), IV(3) and
V(1)-V(4). Records shall be kept on file for a minimum of three years. [15A NCAC 02T.0108(b)]
2. The Permittee shall maintain adequate records pertaining to SSOs, and S50 or wastewater collection
system complaints for a minimum of three years. These records shall include, but are not limited to, the
following information[15A NCAC 02T.0108(b)]:
a. Date of SSO or complaint;
b. Volume of wastewater released as a result of the SSO and/or nature of complaint;
c. Location of the S50 and/or complaint;
d. Estimated duration of the SSO;
e. Individual from the Division who was informed about the SSO and/or complaint, when
applicable;
f. Final destination of the SSO;
g. Corrective actions;
h. Known environmental/human health impacts resulting from the 550; and
i. How the SSO was discovered.
3. The Permittee shall maintain an up-to-date, accurate, comprehensive map of its wastewater collection
system that also notes the locations where other wastewater collection systems become tributary. If a
comprehensive map of the collection system has not been established, a rough sketch shall be drawn. The
Permittee shall map approximately 10 percent of its existing collection system each year for the next ten
years beginning at the original permit issuance date, or until complete, whichever is sooner. The
comprehensive map shall include, but is not limited to: pipe size, pipe material, pipe location, flow
direction, approximate pipe age, and each pump station identification, location and capacity. [15A NCAC
02T.0108(b)]
4. The Permittee shall maintain records of all of the modifications and extensions to the collection system
permitted herein. The Permittee shall maintain a copy of the construction record drawings and
specifications for modifications/extensions to the wastewater collection system for the life of the
modification/extension. Information concerning the extension shall be incorporated into the map of the
wastewater collection system within one year of the completion of construction. The system description
contained within this permit shall be updated to include this modification/extension information upon
permit renewal. [15A NCAC 02T.0108(b)]
IV. MONITORING AND REPORTING REQUIREMENTS
1. In the event of an SSO, the Division may require monitoring that is necessary to ensure surface water and
groundwater protection and an acceptable sampling and reporting schedule shall be implemented.
[15A NCAC 02T.0108(c)]
2. The Permittee shall verbally report to a Division of Water Resources staff member at the Raleigh Regional
Office, at telephone number 919-791-4200 as soon as possible, but in no case more than 24 hours
following first knowledge of the occurrence of the following circumstances within the collection system
Pittsboro Collection System Permit No.WQCS00146 Page 7 of 9

DocuSign Envelope ID:D1A10B4D-6A44-4540-A799-BD01202873C2
which is under the Permittee's ownership or maintained and operated by the Permittee through a
perpetual legal agreement:
a. Any SSO and/or spill over 1,000 gallons to the ground;or
b. Any SSO and/or spill, regardless of volume,that reaches surface water.
Voice mail messages or faxed information shall not be considered as the initial verbal report. SSOs (and
other types of spills) occurring outside normal business hours may also be reported to the Division of
Emergency Management at telephone number(800)858-0368 or(919)733-3300.
Persons reporting any of the above occurrences shall file a spill report by completing Part I of Form CS-SSO
(or the most current Division approved form), within five business days following first knowledge of the
occurrence. This report shall outline the actions taken or proposed to ensure that the problem does not
recur. [G.S. 143-215.1C(a1)]
3. The Permittee shall meet the annual reporting and notification requirements provided in North Carolina
General Statute§143-215.1C.
V. INSPECTIONS
1. The Permittee or the Permittee's designee shall inspect the wastewater collection system regularly to
reduce the risk of malfunctions and deterioration,operator errors,and other issues that may cause or lead
to the release of wastes to the environment, threaten human health or create nuisance conditions. The
Permittee shall keep an inspection log or summary including, at a minimum, the date and time of
inspection,observations made, and any maintenance, repairs, or corrective actions taken by the Permittee.
[15A NCAC 02T.0108(b)]
2. Pump stations that are not connected to a telemetry system (i.e., remote alarm system)shall be inspected
by the permittee or its representative every day(i.e.,365 days per year). Pump stations that are connected
to telemetry shall be inspected at least once per week. [15A NCAC 027.0108(b)]
3. A general observation by the permittee or its representative of the entire wastewater collection system
shall be conducted at least once per year. [15A NCAC 027.0108(b))
4. Inspections of all high priority lines (i.e. aerial line, sub-waterway crossing, line contacting surface waters,
siphon, line positioned parallel to stream banks that are subject to eroding in such a manner that may
threaten the sewer line,or line designated as high-priority in a permit)shall be performed at least once per
every six-month period of time. A list of high-priority lines is presented as Attachment A and is hereby
incorporated into this permit condition. New high priority lines installed or identified after permit issuance
are incorporated by reference and subject to this permit condition until permit renewal where they shall
be referenced in writing in Attachment A. [15A NCAC 02T.0108(b))
VI. GENERAL CONDITIONS
1. This permit is not transferable. In the event that the Permittee desires to transfer ownership of the
wastewater collection system or there is a name change of the Permittee, a formal permit modification
request shall be submitted to the Division. The request shall be accompanied by documentation from the
parties involved, and other supporting materials as may be appropriate. Such request will be considered
on its merits and may or may not be approved. [15A NCAC 02T.0104;G.S. 143-215.1(d)(3)]
Pittsboro Collection System Permit No.WQCS00146 Page 8 of 9

DocuSign Envelope ID:D1A10B4D-6A44-4540-A799-BD01202873C2
2. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute §143-215.6A
through§143-215.6C,and a sewer moratorium may be established. [15A NCAC 02T.0104]
3. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or ordinances that may be imposed by other government agencies (i.e., local, state, and
federal)having jurisdiction. [G.S. 143-215.1(b)]
4. The issuance of this permit does not prohibit the Division from reopening and modifying the permit,
revoking and reissuing the permit, or terminating the permit, as allowed by the laws, rules,and regulations
or as needed to address changes in federal regulations with respect to the wastewater collection system,
in accordance with required procedures. [G.S. 143-215.1(b)(4)]
5. The Permittee shall pay the annual fee within thirty (30) days after being billed by the Division. Failure to
pay the fee accordingly may cause the Division to initiate action to revoke this permit.
[15A NCAC 02T.0110(4)]
6. The Permittee shall file an application for renewal of this permit at least six months prior to the expiration
of this permit. Upon receipt of the request, the Director will review the adequacy of the wastewater
collection system described therein, and if warranted, will extend the permit for a period of time and
under such conditions and limitations,as the Director may deem appropriate. [1SA NCAC 02T.0109]
7. The Permittee shall notify the Division's Municipal Permitting Unit in writing at 1617 Mail Service Center,
Raleigh, North Carolina 27699 of any changes to the name and/or address of the responsible party (i.e.
mayor,city/town manager)of the wastewater collection system. [15A NCAC 02T.0106(c)]
8. Any duly authorized officer, employee, or representative of the Division may, upon presentation of
credentials,enter and inspect any property, premises or place on or related to the collection system at any
reasonable time for the purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this permit,and may obtain samples of
wastewater,groundwater,surface water,soil,or plant tissue.
[15A NCAC 02T.0110(3)]
9. The Permittee or their authorized representative shall have available a copy of this permit to present upon
request by any duly authorized officer,employee,or representative of the Division. [15A NCAC 02T.0104]
Permit issued the 20tl1 of February,2023.
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Docu3Ign.0 by:
Ld1
At
G64531431644FE...
for Richard E. Rogers,Jr.
Director,Division of Water Resources
By Authority of the Environmental Management Commission
by Michael Montebello,
NPDES Branch Chief
Division of Water Resources, NCDEQ
Pittsboro Collection System Permit No.WQCS00146 Page 9 of 9

State of North Carolina
DWR Department of Environmental Quality
Division of Water Resources
SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
Division of Water Resources INSTRUCTIONS FOR FORM: PNOCF 01-16
This form is for ownership changes or name changes of a sewer system permit. Please note that"Permittee"references the
existing permit holder,and that"Applicant"references the entity applying for the ownership/name change.
Sewer permits start with a WQ or WQCS and contain the terms sewer extension or collection system in the subject field. This
form should not be used for permits with NC,NCG,SW or other types of non-sewer permits beginning with WQ.
For more information, visit the Division's Water Quality Permitting's website:
A. Sewer System Permit Ownership/Name Change(FORM: PNOCF 01-16)Application(All Applications):
® Submit an original completed and appropriately executed application(PNOCF 01-16).
® The Existing Permittee's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T
.0106(c), an alternate person may be designated as the signing official if a delegation letter is provided from a person who
meets the criteria in 15A NCAC 02T.0106(b).
D The Applicant's Certification shall be signed in accordance with 15A NCAC 02T.0106(b). Per 15A NCAC 02T.0106(c),an
alternate person may be designated as the signing official if a delegation letter is provided from a person who meets the criteria
in 15A NCAC 02T.0106(b).
B. Existing Permit(All Applications):
Submit a copy of the most recently issued permit and certification.
C. Property Ownership Documentation(All Applications):
➢ The Applicant shall demonstrate they are the owner of all property containing the sewer system facilities:
® Legal documentation of ownership(i.e.,GIS,deed,article of incorporation,or contract),or
O Written notarized intent to purchase agreement signed by both parties with a plat or survey map,or
® Approved board minutes
D. Certificate of Public Convenience and Necessity(All Applications where the Applicant is a Privately-Owned Public Utility):
❑ Per 15A NCAC 02T .0115(a)(1), provide one copy of the Certificate of Public Convenience and Necessity from the North
Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise for the area to be served
by the non-discharge system.
E. Operational Agreements(Applications where the Applicant is a Home/Property Owners'Association or Developer of lots to be
sold):
➢ Home/Property Owners' Associations
❑ Per 15A NCAC 02T.0115(c),submit an original properly executed Operational Agreement(FORM:HOA).
❑ Per 15A NCAC 02T.0115(c), submit an original proposed or approved Articles of Incorporation,Declarations and By-
laws that contain the language required by the Operational Agreement.
➢ Developers of lots to be sold
❑ Per 15A NCAC 02T.0115(b),submit an original of the properly executed Operational Agreement(FORM:DEV).
F. Package Submitted in Duplicate
O Submit a copy of all required documents in Instructions A-E as required
THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED IN DUPLICATE
TO:
NCDEQ-DWR
Water Quality Permitting Section
PERCS Unit
By U.S.Postal Service: By Courier/Special Delivery:
1617 MAIL SERVICE CENTER 512 N.SALISBURY ST.
RALEIGH,NORTH CAROLINA 27699-1636 SUITE 925
RALEIGH,NORTH CAROLINA 27604
TELEPHONE NUMBER: [phone]
INSTRUCTIONS FOR APPLICATION PNOCF 01-16 Page 1 of 1

State of North Carolina
DWR Department of Environmental Quality
Division of Water Resources
SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
Division of Water Resources INSTRUCTIONS FOR FORM:PNOCF 01-16
I. EXISTING PERMITTEE INFORMATION:
1. Permittee's name:Town Of Pittsboro
2. Signature authority's name:Jonathan Franklin per 15A NCAC 02T.0106(b)
3. Signature authority's title:Town Manager
4. Permittee's mailing address: P.O. Box 759
City:Pittsboro State:NC Zip:27312-0759
5. Permittee's contact information: Phone number: [phone] Fax Number(919)542-7109
Email Address:[e-mail]
II. APPLICANT INFORMATION:
1. Applicant's name:City Of Sanford
2. Signature authority's name: Hal Hegwer per I5A NCAC 02T.0106(b)
3. Signature authority's title:City Manager
4. Applicant's mailing address: 601 N.Fifth Street
City: Sanford State:NC Zip: 27330-
5. Applicant's contact information: Phone number: [phone] Fax Number(919)775-8205
Email Address:[e-mail]
6. Representative's name: Victor Czar
7. Representative's title: Assistant City Manager
8. Representative's contact information Phone number: [phone] Fax Number(919)774-8179
Email Address: [e-mail]
III. PERMIT INFORMATION:
1. Existing permit number: WOCS00146 and most recent issuance date:2/22/2023
2. Reason for the permit application:Change of Ownership If other, attach detailed explanation
3. Has the facility been constructed? ®Yes or 0 No
4. Has the facility been certified per 15A NCAC 02T.0116? ®Yes or❑No
FORM: PNOCF 01-16 Page 1 of 2

IV. CERTIFICATIONS:
Existing Permittee's Certification per 15A NCAC 02T.0106(b):
Jonathan Franklin/Town Manager attest that this application
(Signature Authority's name&title from Application Item I.2&3)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that prior to reissuance of the permit
into the Applicant's name, I will continue to be responsible for compliance with the current permit and any discharge of wastewater
from this system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I will also make no claim against the Division of Water Resources should a condition of the existing permit
be violated. I also understand that if all required parts of this application are note completed and that if all required supporting
information and attachments are not included,this application will be returned to mews incomplete.
NOTE— In accordance with General Statutes 143.215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to
exceed$10,000 as well as civil penalties up to$25,000 per violation.
Signature: Date: �-
Applicant's Certification per 15A NCAC 02T.0106(b):
Hal Hegwer/City Manager _ attest that this application
(Signature Authority's name&title from Application Item fl.2&3.)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that after issuance of the permit into
the Applicant's name, I will be responsible for compliance with the issued permit and any discharge of wastewater from this non-
discharge system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I will make no claim against the Division of Water Resources should a condition of this permit be violated.
I also understand that if all required parts of this application package are not completed and that if all required supporting information
and attachments are not included,this application package will be returned to me as incomplete.
NOTE—In accordan e with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or cert lication i ny application package shall be guilty of a Class 2 misdemeanor which ay include a fine not to
exceed$10,000 as w as civil nalties up to$25,000 per violation.
z.
Signature: Date:
•
FORM:PNOCF 01-16 Page 2.of 2