20150636 Ver 1_MonitoringBondingAmounts_20180102

Action History (UTC -05:00) Eastern Time (US & Canada)
Submit by Anonymous User 1/2/2018 8:36:46 PM (Message Start Event)
Approve by Montalvo, Sheri A 1/3/2018 7:54:48 AM (Initial Review- Sheri Montalvo)
• The task was assigned to Montalvo, Sheri A 1/2/2018 8:36 PM

D# * 20150636
Version* 1
Select Reviewer:* Katie Merritt
Mitigation Project Submittal -1/2/2018
Type of Mitigation Project:*
F Stream r Wetlands fJ Buffer rJ Nutrient Offset
(Select all that apply)
Is this a Prospectus or Technical Proposal?* a Yes a No
Project Contact Information
Contact Name:* Mike Herrmann
Email Address:* [e-mail]
Project Information
Existing (DWR) ID#:* 20150636
(nurrbers only... no dash)
Existing Version:* 1
(nunbers only)
Project Name:* Neville Farms Phase1 and Phase 2
County:* Orange
Document Information
Mitigation Document Type:*
Mitigation Information
File Upload: Neville Mon itoring_Bond ingAmounts. pdf 791.77KB
Rease upload only one RDF of the conplete file that needs to be subnitted...
Signature
Print Name:* Michael Herrmann
Signature:*

January 2, 2018

Katie Merritt
Nutrient Offset & Buffer Banking Coordinator
NCDENR-Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1617

Subject: Neville Farms – Monitoring Cost Assessment and Bond Amount Recommendations (DWR# 2015-
0636)

Dear Ms. Merritt:

I am providing additional information requested by the Division related to the monitoring bond amount
required for the subject project. On 12/21/2017, you requested Watershed Investments NC, LLC provide the
following for DWR review: “an itemized list of all of the fees/costs that incurred for your Year 1 monitoring
and maintenance”. This information, in turn, would be reviewed along with remaining projected costs in
consideration of the Year 2 and future years annual monitoring bond amount as allowed per the MBI.

Four attachments are provided in response to the Division request detailing monitoring and
maintenance:

1. Attachment 1. Projected vs. Actual Year 1 costs
2. Attachment 2. Revised Neville Phases 1 & 2 Monitoring & Maintenance Costs Projections Years 2-5.
3. Attachment 3. Original As-built Monitoring and Maintenance Cost Projections
4. Attachment 4. DWR Monitoring cost template

The following are some findings from cost analysis.

 The majority of monitoring costs are born the first year of the project.
 Remaining estimated monitoring and maintenance costs are estimated to be $27,500 Total
 NC DWR guidance requires the monitoring bond be at $25,000

Based on these findings, I propose that the monitoring bond be reduced annually in years 2-5 by 25% of
$19,000, or $4,750 per year. $19,000 is the difference between the original bond amount ($44,000) and
minimum monitoring bond requirement ($25,000).

Table 1 details a proposed schedule that, if approved by the Division, shows how the bond could be reduced
with completion of monitoring tasks/milestones:

Table 1. Proposed Monitoring Bond Amount Schedule.

Monitoring Year %
reduction
Reduction
Amount ($)
Bond
Amount ($)
1 n/a n/a $44,000
2 25% $4,750 $39,250
3 25% $4,750 $34,500
4 25% $4,750 $29,750
5 25% $4,750 $25,000
Minimum Required Monitoring Bond $25,000

1630 Weatherford Circle, Raleigh NC 27604 | Tel : [phone] | www.watershedinvestmentsnc.net
Please let me know if the Table 1 bonding amount schedule is suitable to the Division.

If you need to discuss the project, please contact me at [e-mail]
(email) or 919-559-6264(phone).

Sincerely,
Mike Herrmann

Attachment 1. As-Built vs. Actual Year 1 Costs

Monitoring Tasks Actual
Quantity Measure
Actual
Cost (per
Unit)
Consultant
Fees
Actual
Cost
As-Built
Cost
Vegetation Plot Data
Collection 7 Plots * Yr $250 $7,000 $8,750 $8,800
Data Analysis 1 Years $1,200 $1,200 $800
Report Documentation 1 Annual
Reports $2,000 $2,100 $600
Total $12,050 $10,200
Maintenance & Adaptive Management Tasks (if needed) Herbicide / Vegetation
Control 3 Treatments $1,100 $3,300 $5,250
Herbivory Control 0 Controls $1,000 $0 0
Replanting 0 Supplemental
Planting $3,000 $0 0
Total $3,300 $5,250
Stewardship Inspections 4 Visits $300 $1,200 600
Monitoring and Maintenance Costs Total $16,550 $16,050

Attachment 2. Remaining Neville Phases 1 & 2 Monitoring & Maintenance Costs Projections Years 2-
5.

Years 2-5 Monitoring Tasks
Vegetation Plot Data Collection 7plts * 4
yrs Plots*Yrs $250 0 $7,000
Data Analysis 4 Years $800 $3,200
Report Documentation 4 Annual
Reports $1,625 $6,500
Monitoring Total $16,700
Years 2 - 5 Maintenance & Adaptive Management Tasks (if needed)
Herbicide / Vegetation Control 2 Treatment $1,100 $2,200
Herbivory Control 2 Controls $1,000 $2,000
Replanting 1 Supplemental
Planting $3,000 $3,000
Years 2-5 Maintenance/Management Total $7,200
Stewardship Inspections 12 Visits $300 $3,600
Years 2-5 Monitoring and Maintenance Costs Total $27,500

Attachment 3. Original As-Built Projected Neville Phases 1 & 2 Monitoring & Maintenance Costs (All
Years).

Monitoring Tasks Quantity Measure
Cost
(per
Unit)
Consultant
Fees
As-Built
Total
Cost
Vegetation Plot Data
Collection
6pl /
5yrs Plots/Year $300 $7,000 $16,000
Data Analysis 5 Years $800 $4,000
Report Documentation 5 Annual
Reports $600 $9,000
Total $29,000
Maintenance & Adaptive Management Tasks (if needed)
Herbicide / Vegetation
Control 4 Treatments $1,750 $7,000
Herbivory Control 2 Controls $1,000 $2,000
Replanting 1 Supplemental
Planting $3,000 $3,000
Total $12,000
Stewardship Inspections 10 Visits $300 $3,000
Monitoring and Maintenance Costs Total $44,000

Attachment 4. . DWR Monitoring cost template