NC0026441_SOC Application (S22003 1)_20240903

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Town Manager's Office
August 30, 2024
Mr. Michael Montebello
Engineering Supervisor I RECEIVED
NC Department of Environmental Quality
Division of Water Resources SEP 0 3 2024
NPDES Compliance and Expedited Permit Unit
1617 Mail Service Center NCDEQ/DWR/NPDES
Raleigh, North Carolina 27699-1617
Dear Mr. Montebello:
The Town of Siler City(Town) is submitting the attached application to modify the Town's Special Order of Consent,
EMC SOC WQ S22-003 dated April 14,2023. We have also included a proposed,amended SOC intended to facilitate
an expedited review. The Town is prepared to sign this amended SOC and for the Division of Water Resources to
release it for public notice and comment. For convenience,we are sending these documents by mail and by email.
As set forth in the attachments, the Town has completed most of the milestones under the current SOC, but there
are certain projects that are delayed, subjecting the Town's ratepayers to millions of dollars in stipulated
penalties. Rather than continue with the status quo, we have proposed an amended SOC that focuses on an
approximately$3,000,000 4 MGD BNR Process Upgrade Project at the Siler City WWTP which will get the Town back
into compliance with its NPDES permit faster than would otherwise occur. Accordingly, wastewater flow releases
and stipulated penalties in the amended SOC are tied to the 4 MGD BNR Process Upgrade Project and other ongoing
measures. We believe that shifting the focus of the SOC towards these initiatives provides a positive path forward
for everyone involved. Specifically,our proposal is intended to support economic development and better protect
water quality.
The Town continues to move forward with the other infrastructure projects identified in the current SOC and the
Town is committed to completing those projects. As you know, several positive developments occurred after the
current SOC was executed, which primarily includes the General Assembly's funding for these infrastructure
projects and the added operational expertise of Sanford.
As we have previously stated,Sanford entered into an operational agreement(attached)with the Town as required
by the General Assembly. The Town will sign the amended SOC as the holder of the NPDES and collection system
permits that are subject to the SOC.
We continue to communicate with and update the primary stakeholders that are interested in the SOC, which
includes industrial customers and SELC and its client.
Jack Meadows
Interim Town Manager [e-mail]
PO Box 769.311 N Second Avenue Phone:[phone]
Siler City,NC 27344-0769 www.silercity.org

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Please let us know if you have any questions or would like to discuss. We are hopeful that this amended SOC can
be reviewed and released for public notice as soon as possible and trust that the Division will take this application
into consideration when considering the Town's NPDES permit compliance.
Sincerely,
ack Meadows
Town of Siler City Interim Town Manager
Delivery: Certified Mail
Ecopy:
Mike Montebello- [e-mail]
Richard Rogers, Director, Division of Water Resources- [e-mail]
Julie Grzyb, Deputy Director- [e-mail]
Vanessa Manuel, Raleigh Regional [e-mail]
John Hennessy- [e-mail]
David Lambert—[e-mail]
Nick Coco—[e-mail]
Keyes McGee—[e-mail]
Shadi Eskaf—[e-mail]
Ali Ajami—[e-mail]
Vic Czar—[e-mail]
Paul Weeks—[e-mail]
TJ Lynch—[e-mail]
Brenan Buckley—[e-mail]
Jack Meadows
Interim Town Manager [e-mail]
PO Box 769.311 N Second Avenue Phone:[phone]
Siler City,NC 27344-0769 www.silercity.org

STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER RESOURCES
APPLICATION FOR AN AMENDMENT TO A SPECIAL ORDER BY CONSENT
I. GENERAL INFORMATION:
1. Applicant(corporation, individual, or other): Town of Suer City
2. Owner Phone: [phone](Jack Meadows, Interim Town Manager) RECEIVED
3. Owner Email: imeadows(&silercity•gov SEP 0 3 2024
4. Facility Name (must be the same as name on the original SOC): NCDEQ/DWR/NPDES
Town of Siler City—Siler City WWTP
5. Original SOC No./Issuance Date: EMC SOC WO S22-003 /April 14, 2023
6. NPDES Permit No. (if applicable): NC0026441
5. Application Date: August 30, 2024
II. SOC COMPLIANCE HISTORY:
Please attach a listing of all violations this facility has had under this Order. Include my
violation of interim dates, relaxed permit parameters, and existing permit limits.
As of the date of this request, the Town of Siler City (Town) has completed 23 of 28
Scheduled Activities expressly identified in SOC WQ S22-003. Compliance updates have
been provided to the Division of Water Resources ("Division") on a quarterly basis as
required. A summary of performance to date and estimated completion dates for the
remaining activities are provided in Table II-1, attached.
The existing SOC did not relax any of the Town's NPDES permit limits. The Siler City
WWTP has experienced some violations of its NPDES permit through the normal course
of operation since the SOC was executed. The Town can provide copies of Notices of
Violations to the Division upon request, but assumes that information is readily available
to the Division through its BIMS database.
III. ADDITIONAL FLOW OR REALLOCATION OF EXISTING FLOW:
Only facilities owned by a unit of government may request to add additional flow to the
treatment system as part of this SOC Amendment in accordance with NCGS 143-215.67(b).
SC Application—8-29

Additional flow may be allowed under an SOC amendment only in specific circumstances.
These circumstances may include eliminating discharges that are not compliant with an NPDES
or Non-discharge permit as specified in the original SOC. These circumstances do not include
failure to perform proper maintenance on treatment systems, collection systems or disposal
systems. When requesting additional flow, the facility must include its justification and
supporting documentation. If the requested additional flow is non-domestic, the facility must be
able to demonstrate the ability to effectively treat the waste and dispose of residuals. The
applicant must provide a detailed analysis of all constituents in the proposed non-domestic
wastewater.
The total domestic additional flow requested: see below gallons per day.
The total non-domestic additional flow requested: see below gallons per day.
The total additional flow(sum of the above): see below gallons per day.
If a reallocation of existing additional flow is needed the facility must provide justification as to
why this reallocation is needed.
Any additional flow that may be allowed will be determined by an analysis of projected adverse
impacts on the wastewater treatment facility and/or surface waters.
The Town is proposing Biological Nutrient Removal (BNR) wastewater process upgrades
to the existing 4 MGD WWTP ("4 MGD BNR Process Upgrade Project") that will allow
it to meet effluent limits until the 6 MGD expansion and upgrade project is completed in
2027. The 4 MGD BNR Process Upgrade Project has been designed to accept historical
wastewater effluent concentrations from an existing Significant Industrial User (SIU)
until its ongoing pretreatment system upgrade is operational, as well as expected
wastewater effluent concentrations from a new SIU and other future domestic and non-
domestic sources. These improvements will allow the WWTP to reliably meet effluent
limitations defined in the 4.0 MGD NPDES permit.
The Town is requesting flow releases based on the Town's new, approximately
S3,000,000 4 MGD BNR Process Upgrade Project. Under the existing SOC, only the
fourth (and last) Phase of wastewater flow has yet to be released to the Town. The Town
is requesting the same 100,000 gallons per day of domestic and non-domestic flow be
released by the Environmental Management Commission ("Commission") when the
Town submits the Authorization to Construct for the 4 MGD BNR Process Upgrade
Project. Upon completion of the 4 MGD BNR Process Upgrade Project, the Town is
requesting that the moratorium be terminated, allowing the Town to allocate and treat
wastewater from domestic and non-domestic sources consistent with effluent limitations
in its current 4.0 MGD NPDES permit.
The Town continues to be committed to those interim measures identified in the existing
SOC:
2

1) The Town maintained temporary sludge handling equipment at the WWTP and WTP
for the winter months of December 2023 through March 2024, as required. The
temporary equipment will be mobilized in subsequent winters until permanent sludge
management equipment is installed at the WTP and WWTP as part of ongoing projects or
as required to meet permit requirements.
2) An interim sludge management strategy consisting of hauling, dewatering, and land
application by a third party was implemented to divert WTP residuals from the WWTP
influent. The Town will continue this interim strategy until the WTP Solids Handling
Facilities are constructed and in operation.
3) An existing SIU is implementing a pretreatment system upgrade to meet newly
established SIU effluent limits. These upgrades will not be completed until the end of
2026. In the meantime, the SIU is required to comply with effluent limit as defined in
their existing pretreatment permit. The proposed 4 MGD BNR Process Upgrade Project
has been designed to accommodate wastewater meeting the effluent limits in the existing
pretreatment permit, wastewater effluent from a new SIU that meets the conditions of
their pretreatment permit through 2027, and other future domestic and non-domestic
wastewater from new sources consistent with the effluent limits defined in the 4.0 MGD
NPDES permit.
IV. WHY AN SOC AMENDMENT IS NEEDED:
Please provide a detailed explanation as to why the SOC amendment is being requested. Include
actions already taken to avoid noncompliance with the existing SOC. Also provide details on
activities that were delayed.
The Town is requesting an amendment to the SOC for the following reasons:
• To date, the Town has completed 23 of 28 Scheduled Activities identified in SOC WQ
S22-003. The remaining activities cannot be accomplished within the defined
compliance schedule for reasons beyond the control of the Town. These delays would
expose the Town's rate payers to potential stipulated penalties exceeding$5.2 million
dollars based on the anticipated schedules of completion.
• Subsequent to execution of the existing SOC, the North Carolina General Assembly
appropriated$72,750,000 to the Town for wastewater improvements and required the
Town to enter into an operational agreement with the City of Sanford("Sanford'). I
Sanford and the Town entered into that operational agreement, which became
effective December 1, 2023, and have employed environmental consultants and
engineers with specific expertise in wastewater projects. Sanford has been
supporting the Town's compliance efforts, which have resulted in an improved
compliance record at the Town's WWTP. Through that work, the Town and Sanford
identified the 4 MGD BNR Process Upgrade Project that, upon implementation, can
'See SL 2023-134 Sections 12.2(e)and(g).
3

return the Town to compliance with its NPDES permit limits (and better protect water
quality) sooner than would otherwise occur under the existing SOC.
• The Town has developed interim management strategies to achieve NPDES permit
compliance while efforts to complete the permanent measures are underway. These
interim management strategies will remain in service until the permanent measures
are completed and operational.
• The current 4 MGD WWTP process was not designed to meet stringent Total
Nitrogen (TN) annual limits that decrease to 58,400 pounds per year in 2025. Based
on the Town's current projections, the Town will be in violation of its NPDES permit
for annual TN loading in 2025 and 2026 until the 6 MGD expansion project is
completed in 2027. As a result, the Town believes that the 4 MGD BNR Process
Upgrade Project is necessary. This project will allow the Town to reliably meet
NPDES permit limits and achieve permit compliance for TN discharged in 2025 and
2026 for existing and future domestic and non-domestic wastewater flows consistent
with the effluent limits defined in the 4.0 MGD NPDES permit prior to completion of
the 6 MGD expansion and upgrade.
• The Town is actively working to complete each of the five remaining Scheduled
Activities under the existing SOC. Funding to construct each of these projects is
available through SL 2023-134
THE DIVISION OF WATER RESOURCES WILL NOT ACCEPT THIS APPLICATION
PACKAGE UNLESS ALL OF THE APPLICABLE ITEMS ARE INCLUDED WITH THE
SUBMITTAL.
Required Items:
a. One original and two copies of the completed and appropriately executed application
form, along with all required attachments.
• If the SOC Amendment is for a City/Town, the person signing the SOC must be
a ranking elected official or other duly authorized employee.
• If the SOC Amendment is for a Corporation / Company / Industry / Other, the
person signing the SOC must be a principal executive officer of at least the level
of vice-president, or his duly authorized representative.
• If the SOC Amendment is for a School District, the person signing the SOC must
be the Superintendent of Schools or other duly authorized employee.
Note: Reference to signatory requirements in SOCs may be found in the North
Carolina Administrative Code [T15A NCAC 2H .1206(a)(3)].
b. The non-refundable Special Order by Consent (SOC) processing fee of$400.00. A
check must be made payable to The Department of Environment and Natural
Resources.
4

APPLICANT'S CERTIFICATION:
(NO MODIFICATION TO THIS CERTIFICATION IS ACCEPTABLE)
I, J K 1i 0 Al , attest this application for a Special Order by
Consent(SOC) amendment has been reviewed by me and is accurate and complete to the best of
my knowledge. I understand if all required parts of this application are not completed and if all
required supporting information and attachments are not included, this application package may
be returned as incomplete. (Please be advised that the return of this application does not prevent
DWR from collecting all outstanding penalties upon request). Furthermore, I attest by my
signature that I fully understand that an upfront penalty, which may satisfy as a full
settlement for past violations, may be imposed. {Note: Reference to upfront penalties in
Special Orders by Consent may be found in the North Carolina Administrative Code [T15A
NCAC 2H .1206(c)(3)].}
Date K 3 y".2?
Signat e of Signing Official
ak.IC If17a415
Printed Name of Signing Official
COMPLETED AMENDMENT APPLICATION PACKAGE, INCLUDING ALL
SUPPORTING INFORMATION, SHOULD BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DIVISION OF WATER RESOURCES
POINT SOURCE BRANCH
1617 MAIL SERVICE CENTER
RALEIGH,NORTH CAROLINA 27699-1617
IF THIS APPLICATION IS FOR A NON-DISCHARGING SYSTEM,THEN SEND TO:
NORTH CAROLINA DIVISION OF WATER RESOURCES
AQUIFER PROTECTION SECTION
1636 MAIL SERVICE CENTER
RALEIGH,NORTH CAROLINA 27699-1636
5

Table II-1
Town of Slier City
SOC Compliance Summary indicates pending activity
August 19,2024
Action Estimated Completion Estimated Delay
Item Scheduled Activity SOC Due Date Date (days) Potential Penalty Status
Quarterly Reports:
Jan 30,April 30,July 30, ON-TRACK
1 Submit Quarterly Nutrient Optimization Reports Oct 30
Begins the quarter
2 Submit SOC Quarterly Reports following the issuance ON-TRACK
of the SOC
For Collection System Permit WQCS00056:
3 Apply for Permits for Main Interceptor Replacement Project February 28,2023 COMPLETE
4 Award Construction Contract for Main Interceptor Replacement Project December 30,2023 June 11,2024 164 $321,000 BEHIND SCHEDULE
5 Apply for Permits for ARPA Sewer Rehab Project November 30,2023 COMPLETE
6 Award Construction Contract for ARPA Sewer Rehab Project March 30,2024 November 15,2024 230 $453,000 BEHIND SCHEDULE
7 Complete Construction on Main Interceptor Project June 30,2024 April 30,2025 304 $601,000 BEHIND SCHEDULE
8 Complete Construction on ARPA Sewer Rehab Project June 30,2025 November 30,2025 153 $299,000 BEHIND SCHEDULE
For NPDES Permit NC0026441:
9 Submit an Authorization to Construct application for 6.0 MGD WWTP Expansion November 30,2022 COMPLETE
10 Acquire and maintain temporary sludge handling equipment for winter months December 1,2022 COMPLETE
(Dec 2022-March 2023)
11 Submit drafts of updated Industrial User Permits(IUPs)for all Significant Industrial December 1,2022 COMPLETE
Users(SIUs).
Within 30 days of COMPLETE
12 Issue the updated IUPs to all SIUs with appropriate compliance schedules Division approval of
13 Purchase and install supplementary aeration equipment in oxidation ditches; July 1,2023
COMPLETE
provide documentation of purchase by January 30,2023.
14 Acquire and maintain temporary sludge handling equipment for winter months December 1,2023 ON-TRACK
(Dec 2023-March 2024)
Acquire and maintain temporary sludge handling equipment for winter months
15 (Dec 2024-March 2025)until permanent sludge handling equipment is certified December 1,2024 ON-TRACK
and fully operational

Table 11-1
Town of Slier City
SOC Compliance Summary indicates pending activity
August 19,2024
Action Estimated Completion Estimated Delay
Item Scheduled Activity SOC Due Date Date (days) Potential Penalty Status
The Town's NPDES permit requires that the construction of the third treatment August 31,2024 Removed per Amended No penalties per n/a BEHIND SCHEDULE
train be completed by Aug.31st,2024. SOC SOC
16 Complete construction of 6.0 MGD WWTP Expansion December 31,2024 June 30,2027 911 $1,815,000 BEHIND SCHEDULE
For the Town's Water Treatment Plant(WTP):
17 Begin construction of WTP Pretreatment Improvements June 1,2022 COMPLETE
18 Increase sludge removal frequency to,at a minimum,every 4-6 weeks August 1,2022 ON-GOING
throughout the term of the SOC.
19 Install baffles in the sludge lagoon September 1,2022 COMPLETE
20 Submit a draft IUP for the Town's WTP December 1,2022 COMPLETE
Within 30 days of
21 Issue an IUP for the Town's WTP Division approval of COMPLETE
draft IUP
Acquire and maintain temporary sludge handling equipment for winter months
22 December 15,2022 COMPLETE
(Dec 2022-March 2023)
23 Install a sedimentation fence below the WTP's pump station December 15,2022 COMPLETE
24 Complete construction of WTP Pretreatment Improvements July 31,2023 COMPLETE
Acquire and maintain temporary sludge handling equipment for winter months
25 December 1,2023 ON-TRACK
(Dec 2023-March 2024)
26 Begin construction of WTP Solids Handling Improvements February 1,2024 January 30,2025 364 $721,000 BEHIND SCHEDULE
Acquire and maintain temporary sludge handling equipment for winter months
27 (Dec 2024-March 2025)until permanent sludge handling equipment is certified December 1,2024 ON-TRACK
and fully operational
28 Complete construction of WTP Solids Handling Improvements February 1,2025 July 31,2026 545 $1,083,000 BEHIND SCHEDULE
Total Future Potential Penalty: $5,293,000

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
COUNTY OF CHATHAM
IN THE MATTER OF: ) AMENDED SPECIAL ORDER BY
) CONSENT
NPDES PERMIT NO. NC0026441 AND )
COLLECTION SYSTEM PERMIT NO. ) SOC WQ S22-003
WQCS00056 HELD BY THE TOWN OF )
SILER CITY )
Pursuant to Paragraph 9 of SOC WQ S22-003, which was executed in 2023 (the 2023 SOC), and
G.S. § 143-215.2,the Town of Siler City("Town") and the North Carolina Environmental
Management Commission("Commission")by and through the Director of the Division of Water
Resources ("Division")pursuant to 15A NCAC 02H .1204 hereby amend the 2023 SOC as
follows:
I. The Town and the Commission stipulate the following:
a) The Town has approximately 54.5 miles of wastewater sewer lines ("Collection
System")which is subject to Collection System Permit WQCS00056. The Town's
Collection System conveys wastewater to the Town's wastewater treatment plant
("WWTP"). The Town WWTP discharges treated wastewater to Loves Creek
pursuant to NPDES Permit NC0026441. Loves Creek is classified as Class C
waters of the State within the Cape Fear River Basin and is currently identified in
North Carolina's EPA approved 303(d) list as"impaired" for certain parameters.
b) The Town had problems with inflow and infiltration within its Collection System,
which contributed to flow limit violations of the Town's NPDES Permit
NCO026441. Though the Town has had very few, if any, reportable sanitary sewer
overflows since the initial execution of the 2023 SOC and has not had a flow limit
violation since early 2021, work to further reduce inflow and infiltration to the
Town's Collection System is ongoing.
c) The Town has had problems with consistently complying with the effluent limits
set forth in its NPDES Permit,particularly effluent limits for Biochemical Oxygen
Demand("BOD"), Ammonia,Nitrogen, Total Suspended Solids ("TSS"), and
Fecal Coliform. Due to the Town's compliance issues, including treatment
capacity issues,the Division placed the Town's WWTP under a moratorium in
May 2022 pursuant to G.S. §143-215.67. That moratorium prohibited the
introduction of additional wastewater flow to the Town's WWTP.
d) The purpose of the 2023 SOC was to require the Town to make specific
infrastructure and operational improvements to its Collection System, Water
Treatment Plant("WTP"), and WWTP by specific dates. In exchange for meeting
these deadlines,the Commission authorized the Town to accept new wastewater
SC Amended SOC-8-29

Town of Siler City—Siler City WWTP
DRAFT Amended SOC WQ S22-003
Page 2 of 7
flows to its WWTP (wastewater flows that would otherwise be prohibited by the
May 2022 moratorium).
e) As of August 2024,the Town has completed twenty three (23) of the twenty eight
(28) scheduled requirements under the 2023 SOC.
f) The Town has worked and continues to work diligently to complete the following
wastewater infrastructure projects as described in the 2023 SOC but are behind
schedule due to, among other things, delays in funding:
i. "Main Interceptor Replacement Project": This project will replace
approximately 5,600 linear feet of the main interceptor along Loves Creek
directly upstream of the Town's WWTP. The Town currently estimates
that this project will be completed April 30, 2025.
ii. "American Rescue Plan Act(ARPA) Sewer Rehabilitation Project": This
is a$3,000,000 project to replace and rehabilitate the Town's collection
system. The Town currently estimates that this project will be completed
November 30, 2025.
iii. "WTP Solids Handling Improvements": This project includes the
installation of solids thickening equipment and the improvement of solids
storage facilities. The Town currently estimates that this project will be
completed July 31, 2026.
iv. "WWTP Expansion": The Town will upgrade and expand the Siler City
WWTP from 4 MGD to 6 MGD. This project includes new screening,new
influent pump station, new biological treatment process ("BNR"), a 3rd
treatment train, replacement of clarifier equipment, new filters, a UV
disinfection system, and a new solids handling facility with dewatering
equipment. The Town currently estimates that this project will be
completed July 31, 2027.
g) Subsequent to the 2023 SOC,the North Carolina General Assembly appropriated
$72,750,000 to the Town for wastewater improvements and required the Town to
enter into an operational agreement with the City of Sanford("Sanford").1
Sanford and the Town entered into that operational agreement,which became
effective December 1, 2023, and have employed environmental consultants and
engineers with specific expertise in wastewater projects. Through that work,the
Town and Sanford have identified a wastewater improvement project that, upon
implementation, can return the Town to compliance with its NPDES permit limits
(and better protect water quality) sooner than would otherwise occur under the
projects listed in Paragraph I(f). This "WWTP 4 MGD BNR Process Upgrade
Project" involves converting the Town's WWTP to a four stage Bardenpho BNR
process,using proven technology. The Town has the funding for the WWTP 4
MGD BNR Process Upgrade Project and for the projects described in Paragraph
I(f).
See SL 2023-134 Sections 12.2(e)and(g).
SC Amended SOC-8-29

Town of Siler City—Siler City WWTP
DRAFT Amended SOC WQ S22-003
Page 3 of 7
h) The Town has and will continue to implement temporary sludge handling
equipment and operate the system as necessary to manage WTP and WWTP
solids until permanent sludge handling equipment is fully operational.
i) The Town has caused or contributed to pollution of the waters of the State for
which standards have been established. Therefore,the Commission has the
authority to enter into and amend this SOC pursuant to G.S. §143-215.2. The
Director of the Division of Water Resources has authority to amend the 2023
SOC on behalf of the Commission pursuant to 15A NCAC 02H .1204.
j) The Parties intend to amend the 2023 SOC pursuant to Paragraph 9 of the 2023
SOC and G.S. § 143-215.2. This amendment is necessary due to several changes
that have occurred since the 2023 SOC was executed,which include a
$72,750,000 appropriation by the North Carolina General Assembly for the
Town's wastewater infrastructure,the additional operational expertise of Sanford
and its consultants, and the ability of the WWTP 4MGD BNR Process Upgrade
Project to achieve NPDES permit compliance faster and more reliably than
otherwise would occur. Also,this amendment is necessary to provide relief from
milestones that are unattainable based on current project schedules and
corresponding stipulated penalties that would make funding these wastewater
infrastructure projects infeasible.
II. Based on the foregoing,the Parties agree as follows:
a) Since this Special Order is by consent, neither party will file a petition for a
contested case or for judicial review concerning its terms.
b) The Town shall submit an Authorization to Construct the WWTP 4 MGD BNR
Process Upgrade Project to the Division by September 30, 2024.
c) Upon the Town's submission of the Authorization to Construct the WWTP 4
MGD BNR Process Upgrade Project,the Commission shall release 100,000 GPD
in wastewater flow to the Town.
d) The Division shall work expediently to review and approve the Authorization to
Construct for the WWTP 4 MGD BNR Process Upgrade Project within forty-five
(45)days of receipt.
e) The Town shall issue a Notice to Proceed with construction of the WWTP 4
MGD BNR Process Upgrade Project within forty five (45) days of receiving
funding approval from the Division of Water Infrastructure.
f) The Town shall construct the WWTP 4 MGD BNR Process Upgrade Project
within one hundred and sixty(160)calendar days following issuance of the
Notice to Proceed referenced in Paragraph II(e).
g) Upon completion of the WWTP 4 MGD BNR Process Upgrade Project,the
Division shall terminate the May 2022 moratorium and the Town shall have
access to all of its permitted wastewater flow under the 4.0 MGD NPDES permit.
SC Amended SOC-8-29

Town of Siler City—Siler City WWTP
DRAFT Amended SOC WQ S22-003
Page 4 of 7
h) The deadlines for completion of the third treatment train and 6 MGD expansion
set forth in Condition I.A.(9) in NPDES permit NC0026441 are hereby
eliminated.
i) The Town may request extensions for the deadlines set forth in Paragraphs II(b),
II(e), and II(f). Those extension requests must be submitted to the Division prior
to the relevant deadline and provide an explanation and supporting documentation
as to why the extension is needed. The Division shall review extension requests
and determine, in its sole discretion,whether an extension is justified and, if
justified,the deadline for the extension.
j) The Town has the funding for and shall work in good faith to expediently
complete the following wastewater projects:
i. Main Interceptor Replacement Project;
ii. ARPA Sewer Rehabilitation Project;
iii. 6 MGD WWTP Expansion; and
iv. WTP Solids Handling Improvements.
k) The Town shall continue to implement temporary sludge management strategies
as necessary at the WTP and WWTP.
1) For the term of this amended SOC, the Town shall submit to the Division
Quarterly SOC Progress Reports, containing the following information:
i. descriptions of the work and activities undertaken and completed on all
wastewater projects, including but not limited to the ARPA Sewer
Rehabilitation Project, WWTP Expansion, WTP Solids Handling
Improvements, and the WWTP 4 MGD BNR Process Upgrade Project;
ii. a description of ongoing WWTP effluent nutrient removal optimization
efforts;
iii. a list of and description of any compliance issues or NPDES permit limit
violations; and
iv. identification of the source and amount of any additional wastewater flows
the Town has accepted into its Collection System and WWTP. The Town
shall maintain wastewater flow acceptance records and provide them to
the Division upon request.
m) Quarterly SOC Progress Reports shall be submitted to the Division as follows:
• one copy must be mailed to the Raleigh Regional Office Supervisor, Division
of Water Resources/Water Quality Regional Operations Section, 3800
Barrett Drive, Raleigh,NC 27609;
SC Amended SOC-8-29

Town of Siler City—Siler City WWTP
DRAFT Amended SOC WQ S22-003
Page 5 of 7
• one copy must be mailed to the Water Quality Permitting Section/NPDES,
1617 Mail Service Center Raleigh,NC 27699-1617.
n) The first Quarterly SOC Progress Report is due January 1, 2025 and subsequent
reports are due April 1st, July 1st, October 1st, and January 1st for the term of this
amended SOC.
o) The Town hereby agrees to the following penalties and payments:
i. The Town shall pay$30,978.85 in civil penalties that have not yet been
remitted under the 2023 SOC2 within 60 days from execution of this
amended SOC.
ii. The Commission agrees to waive any stipulated penalties that may have
accrued or be due under the 2023 SOC given the approximately
$3,000,000 WWTP 4 MGD BNR Process Upgrade Project,which will
result in compliance with the NPDES permit much faster than would
otherwise occur.
p) The Town shall pay the following stipulated penalties as set forth below:
Violation Description Stipulated Penalty
Failure to submit an ATC for the WWTP 4 MGD $1,000 per day
BNR Process Upgrade Project by the date set forth in
Paragraph II(b)
Failure to issue the Notice to Proceed with $1,000 per day
construction of the WWTP 4 MGD BNR Process
Upgrade Project by the deadline set forth in Paragraph
II(e)
Failure to complete construction of the WWTP 4 $1,000 per day
MGD BNR Process Upgrade Project by the deadline
set forth in Paragraph II(f)
Failure to meet the NPDES Permit TN annual load $50,000 per year of non-compliance
limit for 2025 and 2026
Failure to submit a Quarterly SOC Progress Report by $1,000 per day
the deadline set forth in II(j)
2 Under the 2023 SOC,The Town was required to pay$100,000 in civil penalties and enforcement costs and
$68,841.88 of civil penalties were held in abeyance.The Town paid$100,000 and has met certain milestones in the
2023 SOC to remit at least 55%of the penalties held in abeyance.While further remittance is tied to deadlines that
have not even yet occurred,the Town is committed to paying the balance of civil penalties in furtherance of
resolving historical wastewater compliance issues.
SC Amended SOC-8-29

Town of Siler City—Siler City WWTP
DRAFT Amended SOC WQ S22-003
Page 6 of 7
q) Payments for balances due under Paragraph II(o)(i)and II(p) shall be made by
certified checks made payable to the North Carolina Department of
Environmental Quality. Payment should be sent to the Director of the
Division of Water Resources at 1617 Mail Service Center,Raleigh,North
Carolina 27699-1617. Failure to make timely payment under Paragraph II(o)(i)
or make timely payment after receiving a demand letter for stipulated penalties
under Paragraph II(p) shall be grounds for a collection action by the Attorney
General's Office. The only issue in such an action will be whether the thirty (30)
calendar day deadline has elapsed.
r) The infrastructure and operational requirements imposed by this amended SOC
are intended to return the Town to compliance with its permits. Regardless of the
requirements in this amended SOC,the Town shall operate its WWTP and
Collection System to prevent and minimize any adverse impacts to the surface
waters.Nothing in this amended SOC limits the Commission and the Division's
authority to enforce the requirements of the Town's Collection System and
WWTP permit, including NPDES permit effluent limits. Moreover,the
Commission specifically reserves all of its rights to issue civil penalties and seek
injunctive relief for violations of the Town's Collection System and NPDES
permit. In exercising its enforcement discretion for permit condition violations,
the Commission will consider the Town's compliance with the requirements of
this amended SOC.
s) This amended SOC and any terms or conditions contained herein,hereby
supersede any and all previous Special Orders and Enforcement Compliance
Schedule Letters.
t) This amended SOC may only be amended in writing, signed by both parties.
u) This amended SOC shall expire January 1,2027. This amended SOC may be
terminated prior to the expiration date by mutual consent in writing or may be
terminated unilaterally upon thirty (30)calendar days written notice to the other
party.
v) This amended SOC may be executed in one or more counterparts, including by
electronic means, each of which shall be an original,and all of which together
shall constitute the amended SOC.
-Signature Page Follows-
SIGNATURE PAGE
For the Town of Siler City:
SC Amended SOC-8-29

Town of Siler City—Siler City WWTP
DRAFT Amended SOC WQ S22-003
Page 7 of 7
Donald Matthews, Mayor Date
Town of Siler City
For the North Carolina Environmental Management Commission:
Richard E. Rogers,Director Date
Division of Water Resources
SC Amended SOC-8-29

INTERLOCAL AGREEMENT FOR OPERATION AND AGENCY BETWEEN THE
CITY OF SANFORD AND THE TOWN OF SILER CITY REGARDING THE SILER
CITY WASTEWATER TREATMENT FACILITY
This INTERLOCAL AGREEMENT FOR OPERATION AND AGENCY (the
"Agreement") is entered into between the TOWN OF SILER CITY, a municipal corporation of
the State of North Carolina(the"Town"),and the CITY OF SANFORD, a municipal corporation
of the State of North Carolina (the "City"). Town and City also may be referred to herein
individually as a"Party"and together as the"Parties."
WITNESSETH:
WHEREAS, the Town currently owns and operates the Siler City Wastewater Treatment
Plant ("WWTP") and has plans to expand the plant capacity from four million gallons per day
(MGD)to six million gallons per day (MGD)(the "Wastewater System Expansion");and
WHEREAS, Section 12.2(e)(163) of S.L. 2023-134 (the "2023 Appropriations Act")
appropriates two million five hundred thousand dollars ($2,500,000) to the City for the
development, operation, and management of the WWTP Wastewater System Expansion; and
WHEREAS, Section I2.2(e)(167) of the 2023 Appropriations Act appropriates seventy-
two million seven hundred fifty thousand dollars($72,750,000)to the Town(the"Funds"),which
are necessary to fund the Wastewater System Expansion as well as other improvements mutually
agreed upon between the City and the Town (together with the Wastewater System Expansion,the
"Projects"); and
WHEREAS, Section 12.2(g)of the 2023 Appropriations Act requires the Parties to enter
into an agreement regarding operation of the WWTP and the Projects in order to receive funding
in the Appropriations Act;and
WHEREAS, N.C.G.S. § 160A-46I 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
NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained, the legal sufficiency of which are hereby acknowledged, Town and City agree as
follows:
PPAB 10011756v7

1. Term Commencement. The Commencement Date shall be November 22, 2023.
This Agreement shall remain in full force and effect from the Commencement Date until the sooner
of(a) the execution of an agreement between the Town and the City to merge the Town's water
and wastewater systems with the City's water and wastewater systems; or (b) termination under
Section 2.
2. Termination. Upon expenditure of all Funds, which are to be received under
Section I2.2(e)(I67) of the 2023 Appropriations Act, and which, for additional clarity, do not
include those funds specifically appropriated for construction of an elevated water tank associated
with an economic development project,either Party may terminate this Agreement with or without
cause after no less than forty-five (45) days prior notice of termination to the non-terminating
Party. The Agreement may also be terminated by mutual written consent of the Parties.
3. Operation and Management of Projects. The City agrees to provide continuous
consulting and training services for operation and management of the WWTP and the Projects.
Continuous consultation and training services include having adequate personnel either on the
WWTP property or available to receive and provide electronic information with respect to
operation and management of the WWTP. The word "WWTP" as used herein includes future
structural changes to the WWTP and additional capacity during and following construction of the
Wastewater System Expansion. City's consultation and training services shall include, without
limitation,the following(altogether,the"Services"):
(a) consultation and training regarding operation of the WWTP as a wastewater
treatment plant, consistent with all applicable permits (the "Permits"), applicable laws, statutes,
ordinances, and regulations of the United States, State of North Carolina, and the Town;
(b)consultation and training regarding maintenance of the WWTP required by any
governmental regulatory authority with jurisdiction to regulate the operation of the WWTP and
inspections by such authority;
(c) consultation and training regarding sampling, testing, monitoring, and filing
reports required pursuant to applicable law and Permits;
(d) consultation and training regarding procurement, use, and storage of goods,
services,and other items necessary for the continuous operation of the WWTP, including without
limitation,chemicals and biological agents necessary to treat all wastewater treated at the WWTP
and diesel fuel for the emergency generator; and
(e)consultation and training regarding daily management of the WWTP.
PPAB I001 I756v7

4. Mutual Agreement as to the Projects. In addition to the Wastewater Treatment
Plant Expansion, the Town and City contemplate using the Funds for other improvements. After
receiving final bids for the Wastewater Treatment Plant Expansion, the City and the Town shall
mutually agree upon additional improvements to be paid for using the Funds and for which the
City will act as the Town's agent in accordance with Section 9 to design, bid, and construct the
improvements until termination of this Agreement. The Town and City hereby agree that the Town
Manager and Director (as that title is defined in Section 9(a)) shall have the authority to consent
to the additional improvements on behalf of the Town and City, respectively.
5. Assignment of Funds. The Town hereby assigns to the City its right to receive
and use the Funds as appropriated by Section 12.2(e)(167)of the 2023 Appropriations Act in order
to pay for the Projects. The City shall enter into any agreement necessary to receive the Funds
from the State.
6. Staffing. The Town will continue to staff and operate the Projects. The City may,
but is not required, to provide trained personnel necessary to operate and maintain the WWTP in
accordance with the terms of this Agreement.
7. Hold Harmless. To the extent permitted by law,each Party shall protect and hold
the other, the other's employees, and the other's agents harmless from and against all liability,
claims,demands, losses, damages,costs,or expenses caused by any liability or loss, including but
not limited to injury, death, or damages to any person or property, related in any way to the
performance of this Agreement to the extent such liability, claims, demands, losses, damages,
costs, fines, penalties, or expenses are caused by the negligent acts, errors, or omissions, or other
misconduct of the other Party. Notwithstanding anything to the contrary in this Agreement,a Party
is not obligated to indemnify and hold the at-fault Party harmless against any claim(whether direct
or indirect) if such claim or corresponding liabilities arise out of or result from, in whole or in part,
the at-fault Party's (i)negligence or other culpable act or omission(including fraud, recklessness,
or willful misconduct), or(ii) failure to materially comply with any of its material obligations set
forth in this Agreement.
S. Town Responsibilities. Town further agrees to do the following:
(a) obtain and maintain in full force and effect all warranties, easements,
Permits, licenses, and other approvals and consents necessary to operate and maintain the
WWTP;
(b) allow the City to use without charge all equipment owned by the Town
located at the WWTP necessary for consultation, training,operation or maintenance of the
WWTP;
(c) be responsible for all fines and penalties imposed for process upsets,
violation of discharge limits, and violation of Permits attributable to the operation and
PI'AB 10011756v7

maintenance of the WWTP,together with related costs and expenses. For the purposes of
this Agreement, a "process upset" is a physical, chemical, or biological disturbance that
adversely affects the operation of the WWTP. An example of a process upset is a third
party introduces chemicals into the collection system, and it adversely impacts the
biological balance in the WWTP; and
(d) provide timely,accurate,and complete information or documentation to the
City regarding the Services and any information requested by the City that is reasonably
necessary to perform any act contemplated by this Agreement.
9. Agency for Construction of the Projects. The Town hereby irrevocably appoints
the City as its agent for purposes of all phases of the design,bidding,construction,supervision and
operation of the Projects and all other actions required for the accomplishment of the Projects. The
City is authorized to take any action the Town could have taken for the purposes of design,bidding,
construction supervision and accomplishment of the Projects.
(a) Responsibilities of the Town in Agency. The Town shall act in good faith
to timely provide information or consent required for the City to perform as agent under
this Agreement.
(b) Responsibilities of the City as Agent. The City agrees that, except as
otherwise provided in this Agreement, it will faithfully discharge all duties imposed on the
City with respect to the design, bidding, construction, supervision, and operation of the
Projects and accomplishment of the Projects in accordance with the respective construction
documents. Without limiting the generality of the foregoing and by way of illustration and
not limitation,with respect to the Projects:
(i) The City,as the agent of the Town, for the foregoing purposes,shall
cause the Projects to be completed in accordance with the respective construction
documents. The City agrees that it will enter into all construction contracts and
other related documents as agent for the Town. The Projects shall be under the
direct management and supervision of the Assistant City Manager (formerly the
Public Services & Economic Development Opportunities Director of the City)
(referred to here as the"Director"). Such employees of the Town as are necessary
for the Projects shall perform work at the direction of the Director. In no event
does this Agreement make any employee of the Town an employee of the City;
(ii) the City shall cause construction agreements to be awarded and
executed with written notification to the contractor that the City is acting on behalf
of the Town;
(iii) upon commencement of construction, the City shall supervise and
oversee construction and the purchase of equipment, acting through its engineers
and agents;
(iv) the City shall,using the Funds as assigned by the Town pursuant to
PPAB 10011756v7

Section 4, pay the contractors' pay requests, fees, and cost of the Projects; resolve
any disputes arising under the construction contract at the Town's expense;and do
all things necessary and required to commence and complete the Projects;
(v) the City shall submit all change orders that increase the scope of the
work and exceed funds previously allocated and budgeted, for preaudit by the
City's Finance Director in accordance with G.S. 159-28;
(vi) the City shall secure and maintain at the Town's expense Builder's
Risk insurance on the Projects during construction, or require in the construction
agreement that the contractor maintain such coverage;
(vii) the City shall require in the construction agreement that the
contractor maintain such types and amounts of insurance coverage as is customarily
required for the construction of public wastewater improvements, to include
comprehensive general liability insurance endorsed to include both the City and the
Town,their officers,employees and agents; and
(viii) the City shall provide such information and documentation as may
be reasonably requested by the Town regarding the City's performance as Agent
under this Agreement.
(c) Reliance on this Agreement. Any person, firm,corporation or entity may
rely upon the validity of this Agreement unless that person knows this Agreement has been
terminated or is invalid.
(d) Right of the City to Enforce Contracts. The Town hereby assigns to the
City all of its rights and powers under all purchase orders and contracts entered into with
respect to the Wastewater System Expansion, and the City has the right to enforce in its
own name or the name of the Town such purchase orders or contracts.
10. No Liability. The City shall not be responsible for damage to the WWTP or
components thereof caused by flood, fire, Acts of God, or other force majeure, civil disturbance,
Acts of War, terrorism, or misuse of property caused other than by City and City's employees,
agents,contractors, and subcontractors, and as otherwise provided herein.
11. Assignment. This Agreement may not be assigned by either Party.
12. Entire Agreement. This Agreement represents the entire Agreement of the Parties
and may only be modified or amended by a writing signed by both Parties.
13. Notices. Any notice given pursuant to the Agreement shall be in writing and
deemed given, if(a)delivered by hand; (b)emailed;or(c)deposited with the United States Postal
Service, postage prepaid, certified mail, return receipt requested or delivered to an overnight
courier service such as Federal Express and United Parcel Service. Notices shall be addressed to
the Party to whom the notice is directed at the below address:
PPAB 1001 1756v7

To the City:
City of Sanford
P.O. Box 3729
Sanford,NC 27331-3729
Attn: City Manager
Telephone: [phone]
Email: [e-mail]
To the Town:
Town of Siler City
P.O. Box 769
Attn:Town Manager
Siler City, NC 27344
Telephone: [phone]
Email: [e-mail]
14. Claims and Rights. No waiver, discharge, or renunciation of any claim, or right
of a Party arising out of breach of this Agreement by the other Party shall be effective unless in
writing signed by the waiving,discharging or renouncing Party.
15. Captions. The captions or headings of the various Articles and Sections of the
Agreement are for convenience only, and they shall be ignored in interpreting the Agreement.
16. Governing Law. All matters relating to this Agreement shall be governed by the
laws of the State of North Carolina.
17. Relationship of the Parties. The Parties acknowledge and agree that this
Agreement does not establish a relationship between Town and City of landlord and tenant, does
not confer on City any Township interest in the Property or the WWTP, and does not confer on
City any possessory interest in the Property or the WWTP except as necessary for City to perform
its obligations under this Agreement.
18. Third Party Beneficiary. This Agreement does not create any rights or benefits
to persons other than the Town and the City.
19. Disputes. With respect to any dispute arising under this Agreement, the Parties
shall have all rights and remedies available at law or in equity. Jurisdiction shall be proper in Lee
County Superior Court.
PPAB I0011756v7

20. Amendments and Modifications. This Agreement may not be modified or
amended except in writing, signed by both Parties and which expressly states that it is intended to
modify or amend this Agreement.
21. Severability. Should any term, covenant, condition, or provision of this
Agreement be held to be invalid or unenforceable, the balance of this Agreement shall remain in
full force and effect and shall stand as if the unenforceable provision did not exist.
22. Disposition of Property at Termination or Expiration. Upon termination or
expiration of this Agreement,all property that is subject to this Agreement reverts to the Party that
owned it at the time this Agreement was executed.
PPAB 10011756v7

IN WITNESS WHEREOF, each party has caused this Agreement to be executed in legal and
binding form by its authorized representative on the date indicated with such execution,such date,
or the later of such dates if not the same date, being the effective date of this Agreement.
TOWN OF SILER CITY
By:
Name: illiam Haiges, Ma • ' o Tern
F S1�
AT' :ST: 4 t.,�
O NAACO 7.tY7 1�
This instrument has been pre-audited in t� �.• = '". ired by the Local Government Budget
and Fiscal Control Act.
By: John O'Keefe, Finance Director
CITY OF SANFORD
By: ..._.
Rebecca hof Salm n May
Date: eeetn Y lj.d?3
ATTEST:
klA.14-wD
Bon ie Davis, City Clerk
This instrument has been pre-audited in the manner required by the Local Government Budget
and Fiscal Control Act.
By: P-yellA_, Uzi Finance Director
PPAB 100117560