20171559 Ver 3_Interbasin Transfer Informaton_20211104

Homewood, Sue
From: Homewood, Sue
Sent: Thursday, November 4, 2021 11:59 AM
To: and [e-mail]; 'Jean B SAW Gibby'
Cc: Wojoski, Paul A
Subject: FW: [External] Inner Basin Transfer Documents and Allocation
Attachments: 1987 JGA Randleman Dam Project with Consortium.pdf, Inner Basin Transfer
Certificate.pdf
Andy/Jean,
I ran down the Interbasin Transfer question further, please see attached documents. The City is providing both water
and sewer to the GRMS and as such it is the City's responsibility to ensure that the accounting is tracked under their
prior approvals. They report to DWR annually and I checked with our internal staff that they see no issues with this all
being allowable under the IBT certificate.
Sue Homewood
Division of Water Resources, Winston Salem Regional Office
Department of Environmental Quality
336 776 9693 office
336 813 1863 mobile
[e-mail]
450 W. Hanes Mill Rd, Suite 300
Winston Salem NC 27105

ENVIRONMENTAL MANAGEMENT COMMISSION
Corrected Certificate
Authority To Use t
from One River t
Authorizin
h
e Power o
o Another
IrB�BBpBD
the Piedmont Trial Re
Unent Domain and to Diver
!r G.S. 162A-7 and 153A-285
UhNAGEMENT
- 1 •
On August 18, 1988 the Piedmont Triad Regional Water Authority
(PTRWA) petitioned the Environmental Management Commission (EMC) for
approval to use the power of eminent domain and to divert water from
one river to another in order to purchase land and construct and
operate Randleman Lake.
As part of its review of the Randleman Lake project under
General Statutes 162A-7 and 153A-285, the EMC held a public hearing
in Randleman, North Carolina on February 6, 1991. A record of that
hearing was included in the Review Document and Final Environmental
Impact Statement (EIS) issued on October 18, 1991. The EIS was
reviewed and approved by the State Clearinghouse on November 15,
1991. The Review Document and Final Environmental Impact Statement
and comments on the EIS received by both the State Clearinghouse and
the Division of Water Resources were mailed to EMC members on
November 26, 1991. The EMC considered the PTRWA's petition at its
regular meeting on December 12, 1991. According to G.S. 162A-7, the
EMC shall issue certificates only to those projects which it finds
to be consistent with the maximum beneficial use of the water
resources in the State and shall give paramount consideration to the
statewide effect of the proposed project rather than its purely
local or regional effect. In making this determination, the
Commission shall specifically consider:
1. The necessity of the proposed project;
2. Whether the proposed project will promote and increase the
storage and conservation of water;
3. The extent of the probable detriment to be caused by the
proposed project to the present beneficial use of water in
the affected watershed and resulting damages to present
beneficial users;
4. The extent of the probable detriment to be caused by the
proposed project to the potential beneficial use of water
on the affected watershed;
5. The feasibility of alternative sources of supply to the
petitioning authority and the comparative cost thereof;
6. _The extent of probable detriment to be caused by the use of
alternative sources of supply to present and potentially
beneficial use of water on the watershed or watersheds
affected by such alternative sources of supply;
7. All other factors as will, in the Commission's opinion,
produce the maximum beneficial use of water for all in all
areas of the State affected by the proposed project or
alternatives thereto.

The members of the EMC reviewed and considered the hearing
record, the Review Document, the Final Environmental Impact
Statement, the final agency and public comments relating to the
Randleman Lake project, and the statutory criteria specified above.
From the foregoing, the Commission makes the following:
Findings
(1) Necessity of the Proposed Project:
Additional water supply sources will be required in the region
served by the members of the PTRWA by about the year 2000 to 2005.
The proposed Randleman Lake, with a yield of approximately 48
million gallons per day (MGD), would supply the region's needs until
the year 2040 at least. Of the members of the PTRWA, the City of
Greensboro and the Town of Randleman have the most urgent need for
water. Based on PTRWA's special study to determine the impact of
water conservation on the need for an additional supply, the EMC
concluded that a reasonable conservation program could delay the
need of a new water supply source for five years, or until the
2005-2010 period.
(2) Whether the proposed project will promote and increase the
storage and conservation of water:
The Randleman Lake project will increase the storage of water
in the Deep River Basin from about 4.4 billion gallons to 22.4
billion gallons. By storing water during high flow periods and
releasing water during low flow periods, Randleman Lake will
increase the minimum flows of the Deep River. Up to 28.5 million
gallons of water per day will be diverted from the Deep River Basin
to the Haw River Basin, and up to 2.0 million gallons will be
diverted to the Yadkin River Basin. Constructing Randleman Lake
will require stricter protection of the watershed.
(3)
Extent
waters
the proposed
the affected
al uses:
The operation of the Randleman Lake project involves the
diversion of a portion of the lake's water to Greensboro and High
Point, to be discharged into the Haw River and Yadkin River Basins.
This diversion of up to 30.5 million gallons of water per day will
reduce the average annual flow of the Deep River by a maximum of 27
percent at the dam site to 3 percent downstream at Moncure near the
confluence of the Deep River and Haw River. Randleman Lake will
flood .one small non -operating hydroelectric site (Coltrane's Mill)
and reduce hydroelectric generation at nine other operating sites by
an estimated 5 to 15 percent. The PTRWA will negotiate with the
owners of these hydroelectric facilities to adjust releases from
Randleman Lake to minimize its overall impacts. The 7-day 10-year
low flow of the Deep River at the Randleman dam site is slightly
less than 10 cubic feet per second (cfs). Randleman Lake will
release a minimum flow of 30 cfs under normal conditions, thereby
providing an augmented flow downstream during dry periods. The
quality of the discharge will also be better than the present flow
in the Deep River because of the dilution and natural sedimentation
-2-

and assimilation of pollutants in a reservoir. There will therefore
be a slightly positive effect on downstream communities who use the
Deep River for water supply and wastewater assimilation. During
extreme dry periods when the volume of water in Randleman Lake
decreases to less than 60 percent of its storage capacity, the
minimum flow will be reduced to 20 cfs and 10 cfs in stages. When
that occurs, PTRWA members will implement a combination of voluntary
and mandatory water conservation measures to reduce the demand on
that storage. However, even under the worst drought that has
occu.Vred in the 58 years of streamflow records, more than the 7-day
10 year low flow will still be released from the lake for downstream
needs. In summary, Randleman Lake will have a negative impact on
hydroelectric facilities and a small positive impact on downstream
water supply and wastewater facilities.
(4) Extent of the probable detriment to be caused by the proposed
project to the potential beneficial use of the water on the
affected watershe
While future use of the waters of the Deep River downstream of
Randleman Lake may double or triple in years to come, the impact of
Randleman Lake will be small because of its ability to increase
minimum flows. The water diverted from the Deep River to North and
South Buffalo Creeks in the Haw River Basin and to Rich Fork Creek
in the Yadkin River Basin as a part of the Randleman Lake project,
is not expected to have a significant impact on erosion or flooding
in these creeks.
(5) Feasibility of alternative sources of supply to the
petitioning authority and the comparative cost thereof
The Randleman Lake Environmental Impact Statement compares the
recommended plan with several alternative reservoir sites. Other
reservoir sites are feasible on paper and some of them would be
superior to Randleman Lake in certain specific respects. However,
the most promising alternatives (Altamahaw Lake and Benaja Lake/
Polecat Creek Lake) are located primarily in Rockingham County.
Because of a State law (Chapter 973, S.B. 1404 of the 1989 Session
Laws) requiring approval by the Rockingham County Board of
Commissioners before an outside local government acquires land for a
public project, implementation of these alternatives would be
difficult. Also, the comparative rating of environmental impacts of
the alternative reservoir sites showed that Randleman Lake had a
smaller total environmental impact. Comparative capital costs are
as follows:
Yield (in MGD) Capital
Randleman Lake
Upper Deep River Lake
Altamahaw Lake
Benaja Lake/Polecat Creek Lake
Cost Per MGD
48 $ 96,331,000 $ 2,010
40 84,929,000 2,120
48 90,649,000 1,890
40.3 87,148,000 2,160
-3-

(6) Extent of probable detriment to be caused
alternat
the use of
_ beneficial
use of water on the watershed or watersheds affected by such
alternative sources of supply:
(a) Upper Deep River Lake - This Lake would result in the
diversion of up to 25.75 million gallons per day from the Deep River
Basin and thus would have less of an impact on downstream
hydroelectric projects than Randleman Lake. The Lake would
inundate portions of the High Point Eastside Wastewater Treatment
Plant, the existing High Point landfill, and the Seaboard Chemical
Plant site, however.
ve sources of supply to presen
entia
(b) Altamahaw Lake - This Lake would result in the diversion
of up to 17.5 million gallons per day of water from the Haw River
Basin to the Deep River and Yadkin River Basins. The project would
inundate 600 more acres than Randleman Lake, cover up 470 acres of
wetlands and impact one State Historic Site.
(c) Benaja Lake/Polecat Creek Lake - This alternative would
only involve minor diversions of water. It would flood a natural
area of regional significance and cover up about 845 acres of
bottomlands and 735 acres of wetlands.
(7)
Other factors that will produce the maximum beneficial use of
water for all in all areas of the state affPnfPa by fho
(a) Water Quality of the Upper Deep River - Even though
recent monitoring data from the Upper Deep River indicate that the
quality of water is generally good, the Piedmont Regional Water
Authority had an extensive water quality study conducted to predict
the quality of water in Randleman Lake. All potential sources of
pollutants were inventoried and future discharges of pollutants were
projected. A model of the lake was developed that assumed that all
pollutants discharged into the lake would remain dissolved or
suspended in the water. Based on this very conservative model, the
untreated water in the lake is projected to meet all standards for
finished drinking water except aluminum, copper, and iron. These
three metals will either settle out in the lake or be removed in the
water treatment plant and will not be a problem in the finished
water supply. The water quality study also predicted the level of
nutrient enrichment (eutrophication) in Randleman Lake. While some
over -enrichment is projected in the Upper Deep River area near High
Point's Eastside wastewater treatment plant, the lake as a whole is
predicted to be less eutrophic than many other water supply
impoundments in the Piedmont of North Carolina.
(b): Seaboard Chemical Site and High Point Landfill - The lake
water quality model included inputs of pollutants from these two
waste sites which lie adjacent to the Deep River area of Randleman
Lake. The Division of Solid Waste Management has indicated that
certain specific pollutants in the landfill were omitted from the
model but that the quantity of these pollutants was not going to be
available until the City of High Point completes an intensive
monitoring study of the landfill in 12 months. Based on the results
of that study, the Division of Solid Waste Management will require
-4-

the City of High Point to develop a closure plan for the landfill to
prevent the escape of significant amounts of pollutants from the
site. Provisions of this plan may include covering the landfill
with an impervious cover, constructing a slurry wall to stop the
flow of leachate, and pumping and treating leachate from the
landfill. Because Randleman Lake is not planned to be constructed
until the year 2000, there is adequate time to carry out these
corrective measures. The same rationale applies to the much smaller
Seaboard Chemical site, which is now being cleaned up by 10 of its
largep-t contributors.
(c) Water Quality of the Deep River Downstream of Randleman
Dam The PTRWA will construct a multi -level outlet device
at the Randleman Dam in order to release high quality water
downstream regardless of the water level in the lake. In the review
of the environmental impacts of the Randleman Lake project, the City
of Sanford noted that water in the Deep River below Carbonton Dam
frequently exhibited low substandard dissolved oxygen concentrations
during warm base flow periods (late summer and fall). Because
Randleman Lake will supplement base flows during these dry periods
and improve the quality of water flowing downstream, it should help
improve the quality of water in the lower Deep River. The Division
of Environmental Management will investigate the causes of the
dissolved oxygen deficit below Carbonton Dam and recommend steps to
rectify this situation.
(d) Archaeology and Historical Pro erties - A comprehensive
cultural resources survey, with archaeological, architectural, and
historic components, must be done by the PTRWA. Data recovery and
mitigation at affected sites determined to be eligible for listing
in the National Register of Historic Places is also required.
(e) Recreation - Adequate recreational facilities should be
planned and constructed around the lake by local governments,
private concessionaires, or State agencies.
(f) Wetlands - Approximately 25 acres of wetlands in the
impoundment area of Randleman Lake will need to be mitigated and 55
additional acres in the buffer area around the lake protected.
A mitigation plan for the loss of wetlands and fish and wildlife
resources must be developed during the Federal Clean Water Act
Section 404 permitting process.
(g) Fish and Wildlife - There is no evidence of endangered or
rare fish and wildlife species living in the Randleman Lake project
area. PTRWA has agreed to perform an intensive fish and wildlife
survey, of the Randleman Lake site and buffer area and to develop a
mitigation plan based on the results of that survey.
(h) Old Randleman Town Dum - The PTRWA has tested surface
water down gradient of the site and found no contamination. No soil
testing or ground -water monitoring of this 2.91 acre site adjacent
to the site of the proposed Randleman dam has occurred. The
Division of Solid Waste Management will test this site in early 1992
and require any necessary clean up if contamination is found.
-5-

(i) Forest Resources - The PTRWA will use best management
practices in the planning, care, and harvest of forests in the
3,000-acre buffer area, following recommendations by the Division of
Forest Resources. The main purposes of the buffer area will be for
the protection of lake water quality and preservation of wildlife
habitat.
Decision
Based on the complete hearing record, the Commission, on
December 12, 1991, by duly made motions and votes, granted the
petition of the Piedmont Triad Regional Water Authority to use the
power of eminent domain in purchasing land for the Randleman Lake
project and to divert up to 30.5 million gallons per day of water
from the Deep River Basin to the Haw and Yadkin River Basins in
operating Randleman Lake. As a part of this grant of authority, the
Commission required that the Piedmont Triad Water Authority maintain
a minimum release of 30 cubic feet per second from Randleman Lake,
except during extended droughts when the minimum flows could be
lowered to 20 cubic feet per second and 10 cubic feet per second
after the water stored in the lake fell below 60 percent and 30
percent of the total lake volume respectively. The Commission also
required the PTRWA to determine the relationship between the
dissolved oxygen concentration of water released from Randleman Lake
and the dissolved oxygen concentration downstream in the Deep River
to the confluence with the Haw River. If the water released from
Randleman Lake does not meet ambient dissolved oxygen standards
1000 feet downstream from the dam, or if the dissolved oxygen
content of the water released from Randleman Lake contributes
significantly to ambient dissolved oxygen standard violations
downstream in the Deep River, the PTRWA is required to install and
operate appropriate oxygenation equipment at Randleman Dam.
This document shall constitute the certificate as
required by G.S. 153A-285 and 162A-7, and is effective as of the
Commission's action on December 12, 1991.
This the Z s day of , 1992.
Charles L. Baker, Chairman

STATE OF NORTH CAROLINA
COUNTY OF RANDOLPH
IN THE MATTER OF:
CERTIFICATE AUTHORIZING THE )
PIEDMONT TRIAD REGIONAL WATER )
AUTHORITY TO USE THE POWER OF )
EMINENT DOMAIN AND TO DIVERT )
WATER FROM ONE RIVER TO )
ANOTHER UNDER G.S. §162A-7 )
AND 153A-285. )
BEFORE THE ENVIRONMENTAL
MANAGEMENT COMMISSION
�-o 2
FEB 1992
ENVIRONMENTAL MANAGEMENT
ORDER COMMISSION
THIS MATTER came before the undersigned Chairman of the
Environmental Management Commission for the correction of the
Certificate previously entered herein, it appearing to the
undersigned that the Certificate contains a drafting error
limiting the study of dissolved oxygen levels in the Deep River
to the waters below Carbonton Dam and the installation of
oxygenation equipment at Randleman Dam. This error became
apparent upon the correction of the minutes for the December 12,
1991 meeting of the Commission.
THEREFORE, IT IS ORDERED that the Certificate authorizing
the power of eminent domain and the transfer of water from one
river to another is corrected by replacing the last two sentences
in the Decision paragraph on page 6, lines 19 through 26, with
the following:
The Commission also required the PTRWA to determine the
relationship between the dissolved oxygen concentration
of water released from Randleman Lake and the dissolved
oxygen concentration downstream in the Deep River to
the confluence with the Haw River. If the water
released from Randleman Lake does not meet ambient
dissolved oxygen standards 1000 feet downstream from
the dam, or if the dissolved oxygen content of the

-2-
water released from Randleman Lake contributes
significantly to ambient dissolved oxygen standard
violations downstream in the Deep River, the PTRWA is
required to install and operate appropriate oxygenation
equipment at Randleman Dam.
IT IS FURTHER ORDERED that the attached Corrected
Certificate Authorizing the Piedmont Triad Regional Water
Authority to Use the Power of Eminent Domain and to Divert Water
from One River to Another under G.S. §162A-7 and 153A-285 be
filed with the Recording Secretary and served upon the parties.
This the Z /sr day of February, 1992.
71
Charles L. aker, Chairman
Environmental Management Commission
:emcorder.fc

CERTIFICATE OF SERVICE
This is to certify that the undersigned has this day served
the foregoing Certificate of the Environmental Management
Commission upon each of the following persons by depositing a
copy in the United States Mail, First -Class Postage Prepaid
except as otherwise indicated and addressed as follows:
John Kime, Executive Director
Piedmont Triad Regional
Water Authority
Koger Center, Wilmington Bldg.
2216 West Meadowview Rd.
Greensboro, NC 27407
Mr. Vance Arnold, Chairman
Plateau Group, N.C. Sierra Club
406 Hillside Drive
Greensboro, NC 27401
Mr. Garrison W. Brinton
30 East 65th Street
New York, NY 10021
Mr. Lynwood N. Bullock
Bullock Industries
6898 Coltrane Mill Road
Greensboro, NC 27406
Mr. Chris Carter, President
Haw River Assembly
P.O. Box 187
Bynum, NC 27228
Mrs. Edith S. Coltrane
Vice Chairperson & Treasurer
Deep River Citizens' Coalition
Route 1, Box 833
Randleman, NC 27317
Mr. George Cook
Cook Industries
5312 Groometown Road
Greensboro, NC 27407
Certified Mail
Return Receipt Requested
Mr. E.M. Harris, Jr. Mayor
Town of Goldston
P.O. Box 115
Goldston, NC 27252
Mr. Thomas J. Hill
J & T Hydro
P.O. Box 447
Ramseur, NC 27316
Mr. Steve Grathwohl,
President
Conservation Council of N.C.
P.O. Box 37564
Raleigh, NC 27627
Mr. William H. Lee
Deep River Hydro
P.O. Box 38
Franklinville, NC 27248
Ms. Ann Long
Clean Water Fund of NC
112 North Person Street
Raleigh, NC 27601
Mr. Gus Murchison
Chatham County Board of
Commissioners
P.O. Box 86
Gulf, NC 27256

Mr. William K. Cowan
Lee County Manager
P.O. Drawer 1968
Sanford, NC 27331-1968
Mr. -Bruce Cox
Route 1, Box 167
Ramseur, NC 27316
Mrs. Margaret Jordan -Ellis
President, Deep River Park
P.O. Box 30
Gulf, NC 27256-0030
This the S day of
:COSEMC.FC
-2-
Mr. Larry B. Thomas, P.E.
Public Works Director
City of Sanford
P.O. Box 338
Sanford, NC 27330
Mr. Leroy Townsend, Jr.
Assoc. Lockville Hydro Power Co.
P.O. Box 1572
Lumberton, NC 28359
February, 1992.
LACY H. THORNBURG
Attorney General
l
Francis W. Crawley
Special Deputy Attorney General
N.C. Department of Justice
P.O. Box 629
Raleigh, NC 27602-0629
[phone]

NORTH CAROLINA JOINT GOVERNMENTAL AGREEMENT
GUILFORD COUNTY
RANDLEMAN DAM PROJECT
THIS JOINT GOVERNMENTAL AGREEMENT, made and entered into
this fk day of SVA41r �,1987, by and among CITY OF ARCHDALE,
CITY OF GREENSBORO, CITY OF HIGH POINT, TOWN OF JAMESTOWN,
CITY OF RANDLEMAN (all municipal corporations of the State of North
Carolina) RANDOLPH COUNTY (a political subdivision of the State of
North Carolina) , and the PIEDMONT TRIAD REGIONAL WATER AU-
THORITY (an authority created under the laws of the State of North
Carolina) , all of which parties are hereinafter referred to collectively as
the "Consortium;"
WITNESSETH:
THAT, WHEREAS, pursuant to the North Carolina Water and Sewer
Authorities Act (N.C.G.S. 162A-1 et, seq.), each municipality and
county set out above adopted resolutions jointly organizing a Triad
Regional Water Authority and, pursuant thereto, the Articles of Incor-
poration of the Piedmont Triad Regional Water Authority were duly
established and filed with the Secretary of State of North Carolina.
Page 1 of 12

WHEREAS, in order to foster a joint and binding commitment for
ntergovernmental cooperation, pursuant to N.C. G.S. 160A-460 et. seq.,
N.C.G.S. 160A-17, N.C.G.S. 160A-274, and N.C.G.S. 162A-14, the
parties hereto desire to enter into a full, irrevocable agreement
terminable by any one party only upon payment of liquidated damages,
it being the intent that such agreement shall be fully binding on all
parties and further requiring each governing body of a local govern-
ment named herein to appropriate its proportionate share of public
funds needed for the purpose of meeting the financial obligations and
commitments hereinafter set forth toward the purchase of land, con-
struction of a dam, and a wastewater bypass;
WHEREAS, during the interim period prior to construction and
operation of the dam facilities, it is the further intent of this Agree-
ment for those cities in the Consortium which now have surplus water
supplies to share such surplus water with those cities or county in the
Consortium which will require additional water and to initiate the con-
struction of necessary transmission lines to serve that use with the
participation of the Piedmont Triad Regional Water Authority in cases
where such lines can be located and sized for future use by the
Piedmont Triad Regional Water Authority at such time as the Randleman
Dam water treatment facility is operational;
WHEREAS, it is the further intent of this Agreement that the
Piedmont Triad Regional Water Authority will, during the 1998-99 fiscal
year, issue revenue bonds in an amount necessary to construct the
Page 2 of 12

first phase of a water treatment plant and the limited transmission lines
conductive thereto;
WHEREAS, once the respective percentage of funds attributed to
each local government has been advanced toward the implementation of
the Randleman Dam Project, the Piedmont Triad Regional Water Authori-
ty shall proceed to conduct the operation and maintenance thereof based
upon a uniform rate structure for the distribution of water to the
governmental units named herein which purchase treated water from the
water treatment plant;
WHEREAS, it is understood that certain obligations are being
created by the Authority upon entering into this Agreement, thus each
local government recognizes that the withdrawal privileges permitted
under G.S. 162A-4 are hereby tolled and waived.
NOW, THEREFORE, for and in consideration of the mutual terms,
conditions, covenants, obligations and privileges contained herein by
and among the Consortium named above, it is hereby agreed as follows:
1. Construction Schedule and Joint Financial Participation. Each
local government, individually and severally, agrees to participate
financially toward the acquisition of land, construction of the Randleman
Dam, and construction of the wastewater bypass. It is the intent of
the Consortium to seek the completion of all capital improvements set
out above and for the Piedmont Triad Regional Water Authority to
commence the operation of these improvements no later than 2000.
D­ '2 nF 1 7

For the above mentioned purposes, each local government shall
appropriate and allocate funds on an equitable distribution formula
basis, which formula is determined by the percent of raw water alloca-
tion for each local unit of government based on a 48 million gallon per
day safe yield as follows, to wit: City of Greensboro, 59.4%; Randolph
County, 12.5%; City of High Point, 21.0%; City of Randleman, 2.1%;
Town of Jamestown, 2.5%; City of Archdale, 2.5%. The same raw water
allocation formula shall apply to annual operating requirements of the
Piedmont Triad Regional Water Authority for staffing, professional
service fees, and other administrative costs of operation commencing in
the 1987-88 fiscal year budget and continuing each year thereafter until
such time as the Piedmont Triad Regional Water Authority commences
operation of the water treatment plant and distribution system.
2. Project Phases and Budget Appropriations. It is understood
and agreed that the first phase shall provide for the acquisition of
necessary land and easements for the location of the dam, limited trans-
mission lines connected thereto, and the wastewater bypass. In order
that the land may be acquired over an eight -year period, each local
government named herein shall appropriate its prorata share of funds in
each budget year as necessary in order to proceed with such acquisi-
tion of property. These funds shall be paid to the Piedmont Triad
Regional Water Authority at the beginning of each budget year. Con-
tribution for land and easement acquisition shall be made in each year
based on the following estimates, which estimates are more fully set
forth in Exhibit A, attached hereto :
Page 4 of 12

1988-89
$ 500,000.00
1989-90
1,100,000.00
1990-91
1,100,000.00
1991-92
1,100,000.00
1992-93
1,100,000.00
1993-94
1,100,000.00
1994-95
1,000,000.00
1995-96
1,000,000.00
1996-97
1,000,000.00
The second phase of the project shall involve the construction of
the dam, limited transmission lines conductive to such dam, and the
wastewater bypass. While it is recognized that each local government
named herein may determine, in its own wisdom, the appropriate manner
of providing its proportionate share of funds, the total amount of funds
for this phase shall be made available to the Piedmont Triad Regional
Water Authority in the 1998-99 fiscal year budget in order to let the
contract for construction which is presently estimated to be
$48,000,000.00. A local government may appropriate funds in a capital
reserve amount annually, or provide its share at the time that such
funds will be needed as set out above. For this phase, each local
government shall be committed to the percent as set out in paragraph 1
of this Agreement.
It is understood that the total dollar amounts for land acquisition
and dam construction, as set out above, are only estimates based on
sound engineering data and may be altered in future years depending
Page 5 of 12

upon inflationary trends, increased enhancement of land and facilities,
and any other factors which influence the total actual costs.
The third phase shall involve the construction of the initial phase
of the water treatment plant and the limited transmission lines in con-
nection therewith. Before commencement of this phase the Piedmont
Triad Regional Water Authority shall survey the cities and county in
the Consortium to ascertain their projected water needs for the purpose
of developing treated water allocations. It is understood that requests
for treated water allocations will be at the sole option of each local
government. After negotiation with the parties hereto, the Authority
will establish treated water allocations for the first and successive
phases of the water treatment plant based on projected needs and
feasibility of revenue bond sales. To the extent that all other matters
and things having been accomplished in accordance with the above
mentioned schedule, the Piedmont Triad Regional Water Authority shall,
either in the 1998-99 fiscal year or in some future year thereafter when
the need has been determined, issue revenue bonds in an amount
necessary to construct the first phase of such water treatment plant
and limited transmission lines. Thereafter, the Authority will provide
for adequate expansion of the water treatment plant in response to
timely notice of need and agreements to purchase water on the part of
the local governments named herein. When the first and successive
phases of the water treatment plant commence operation, each local
government herein agrees to receive water according to the agreed -upon
treated water allocation schedule established by the Authority in negoti-
ation with the parties hereto. However, if one local government in the
Page 6 of 12

Consortium has reached its allocation, it may negotiate independently
with other sources to purchase additional water.
3. Delivery of Treated Water and Water Rate. The Authority
shall deliver water from the treatment plant to designated delivery
points at its system's pressure and agreed- upon volume. The sale of
water to local governments in the Consortium shall be based upon a
uniform rate structure set by the Authority.
4. Grant Funds. It is the intent of the Piedmont Triad Regional
Water Authority to enter into a separate agreement with the State of
North Carolina, whereby the State will participate financially in land
acquisition and dam construction costs. In the event that any State
funds are received, the financial obligation of each local government will
be reduced proportionally on the basis of each such local government
unit's percent of participation.
5. Interim Construction of Transmission Lines and Water Distri-
bution. It is understood that water transmission lines may be installed
as needed before the construction of the Randleman Dam and water
treatment plant. In such event, the sizing and routing of these water
transmission lines may conform to and be commensurate with the future
needs and requirements of the Piedmont Triad Regional Water Authority
in providing the distribution of water to the local governments herein.
It is understood that the financial responsibility for the cost of con-
struction of such transmission lines shall be determined among those
Page 7 of 12

specific local units of government involved, except that the Piedmont
Triad Regional Water Authority may enter into negotiations with those
involved local governments to establish an extent of possible financial
participation by the Authority in the construction cost of the lines when
the lines will be turned over to the Authority for transmission of water
from the treatment plant.
Upon completion of the necessary transmission lines, where one
local government desires to receive water from an existing reservoir of
another local government during this interim period, the local govern-
ment distributing water shall sell to the other local government on a
direct basis. Costs for this water will be negotiated by the specific
entities involved. Upon completion of the dam and water treatment
plant and the commencement of operation by the Piedmont Triad
Regional Water Authority, all agreements to sell water directly from one
local government in the Consortium to another local government in the
Consortium shall be automatically rescinded when transmission lines are
in place to serve the purchasing local government. Any transmission
lines constructed with the financial participation of the Piedmont Triad
Regional Water Authority shall be turned over to the Authority for use
in the distribution of water from the Randleman Dam reservoir.
6. Change in Raw Water Allocation. There shall be no change in
the percent of raw water allocation for any local government named
herein except by mutual consent between those governments who would
agree to an exchange of the percentage of allocation among themselves,
with no net effect on the total raw water allocation. In the event of a
Page 8 of 12

change in such raw water allocations among the local units of govern-
ment, there shall then be a concurrent adjustment in the percent of
cost allocation for each local unit of government affected. By way of
example, should one local unit's percent of raw water allocation be
reduced by one percent, then the cost allocation to that local govern-
ment for the acquisition of land and construction of the project shall be
reduced accordingly; likewise, should one. local unit's percent of raw
water allocation be increased by one percent, then that local unit's cost
of acquisition of land and construction of the project shall be increased
accordingly. However, nothing in this Agreement shall prevent a local
government in the Consortium which has reached its raw water alloca-
tion from negotiating independently with other sources to purchase
additional raw water.
7. Termination and Liquidated Damages. It is understood and
agreed that this is an irrevocable agreement unless terminated by
unanimous mutual consent of all local governmental units of the Consor-
tium. Nevertheless, in the event any local government named herein
attempts to withdraw from the Water Authority or otherwise terminate
its participation in this Agreement, it shall be considered a default. It
is further mandated herein that such local government shall immediately
pay all obligations then outstanding and committed.
In addition, such local government shall pay its normal share
based upon future obligations pursuant to the terms of this Agreement
in annual payments as liquidated damages. This total amount, based on
the actual cost of the project (excluding cost of water treatment plant)
Page 9 of 12

and
its percent
of annual participation,
is hereby agreed upon,
fixed
and
determined
by the parties hereto as.
the liquidated damages
that the
remaining local government units will suffer by such default and not by
way of penalty.
8. Miscellaneous. This Agreement constitutes the entire agree-
ment among the parties and binds each of their successors and assigns.
Any modification of this Agreement must be by written instruction
signed by all parties. No waiver or any breach of this Agreement shall
be construed as a waiver of any subsequent breach of similar or like
nature. This Agreement shall be construed and interpreted according
to the laws of the State of North Carolina. The invalidity or
unenforceability of any particular provision of this Agreement shall not
affect the other provisions hereof, and this Agreement shall be con-
strued in all respects as if such invalid or unenforceable provisions
were omitted.
Page 10 of 12

IN WITNESS WHEREOF, all of the parties hereto have caused this
Agreement to be duly executed by each of their properly authorized
officials, attested by their Clerks, and each of their corporate seals to
be hereunto affixed, all on the day and year first above written.
ATTEST: CITY OF ARCHDALE
44L /ftic�i B Y : �L-
ity clerk ayor
ATTEST:
ATTEST:
CITY OF REENSBORO
j
CITY OF HIGH POINT
Page 11 of 12

ATTEST:
ity lerk
ATTEST:
ity Clerk
ATTEST:
Jerk to the Board
ATTEST:
Approved as to foKm and legality:
egai uounse
TOWN OF JAMESTOWN
Mayor
CITY OF RANDLEMAN
ayor
RANDOLPH COUNTY
hairman
PIEDMONT
This instrument has been preaudited in the manner required by the
Local Government Budget and Fiscal Control Act.
Finance DirectoJ
Page 12 of 12
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