NC0026441_SOC (Draft)_20230213

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
COUNTY OF CHATHAM
IN THE MATTER OF )
NORTH CAROLINA ) SPECIAL ORDER BY CONSENT
NPDES PERMIT NO. NC0026441 ) EMC SOC WQ S22-003
PERMIT NO.WQCS00056 )
)
HELD BY )
THE TOWN OF SILER CITY )
Pursuant to provisions of North Carolina General Statute(G.S.) 143-215.2 and G.S. 143-215.67,
this Special Order by Consent(SOC)is entered into by the Town of Siler City(Town)and the
North Carolina Environmental Management Commission(Commission), an agency of the State
of North Carolina created by G.S. 143B-282:
1. The Town and the Commission hereby stipulate the following:
(a) The Town operates and maintains approximately 54.5 miles of wastewater sewer lines
(Collection System)pursuant to North Carolina Collection System Permit WQCS00056.
The Town's Collection System conveys wastewater to the Town's wastewater treatment
plant(WWTP). The Town operates its WWTP and discharges treated wastewater to
Loves Creek pursuant to North Carolina 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 has problems with inflow and infiltration within its Collection System,which
contributes to flow limit violations of the Town's NPDES Permit NC0026441. The
Town's Collection System requires several upgrades to address inflow and infiltration
issues, including but not limited to, sewer(force main)rehabilitation and pump station
upgrades/improvements.
(c) The Town is unable to consistently comply with the effluent limits set forth in its NPDES
Permit NC0026441, including effluent limits for Biochemical Oxygen Demand(BOD),
Ammonia Nitrogen, Total Suspended Solids(TSS),and Fecal Coliform. The Town is not
complying with operational requirements as set forth in its NPDES permit NC0026441
due to several issues, including inadequate management of wastewater residuals,
significant inflow and infiltration, and influent from Significant Industrial Users(SIUs)
with high levels of nutrients(and other pollutants). The Division of Water Resources
(Division)has issued several civil penalties to the Town for noncompliance with NPDES
Permit NC0026441, Collection System Permit WQCS00056, and the associated water
quality laws. The United States Environmental Protection Agency has designated the
Town's WWTP as being in"significant non-compliance."Due to the Town's ongoing
compliance issues, including treatment capacity issues,the Division placed the Town's

Town of Siler City—Siler City WWTP
EMC SOC WQ S22-003
Page 2 of 9
WWTP under a moratorium in May 2022 pursuant to G.S. 143-215.67. That moratorium
prohibits the introduction of additional wastewater flow to the Town's WWTP.
(d) The Town is causing or contributing to pollution of the waters of the State within an area
for which standards have been established. Therefore,the Commission has the authority
to enter into this SOC pursuant to G.S. 143-215.2.
(e) The purpose of this SOC is to require the Town to make specific infrastructure and
operational improvements to its Collection System, Water Treatment Plant(WTP),and
WWTP as set forth in Paragraph 2(a) and 4(a)to get the Town's Collection System and
WWTP back into compliance with the associated permits and water quality laws.As the
Town meets milestones set forth in this SOC,the Commission will authorize the Town to
accept new wastewater flows to its WWTP(flows that would otherwise be prohibited by
the moratorium issued by the Division in May 2022)as set forth below in Paragraph 4(a)
and remit a portion of outstanding civil penalties as set forth in Paragraph 5(b). If the
Town complies with this SOC in its entirety and there are no newly identified
infrastructure or operational issues during the SOC term,then the Division will terminate
the May 2022 moratorium. Failure to meet certain milestones will result in outstanding
civil penalties becoming due as set forth in Paragraph 5(b)and stipulated penalties as set
forth in Paragraph 5(c).
(f) The Town has secured a grant or has otherwise secured financing for planning, design,
and construction/repairs as follows:
i. Sewer Rehabilitation—"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.
ii. Sewer Rehabilitation—"American Rescue Plan Act(ARPA) Sewer Rehabilitation
Project":
The Town will invest$3,000,000 toward replacement or rehabilitation of sewer.
iii. WWTP Expansion:
The Town will upgrade and expand the Siler City WWTP from 4.0 MGD to 6.0
MGD. This project includes new screening,new influent pump station, new
biological treatment process (BNR), a 3`d treatment train,replacement of clarifier
equipment,new filters, and a UV disinfection system,and a new solids handling
facility with dewatering equipment.
iv. WTP Pretreatment Improvements:
This project includes the installation of new mechanical pretreatment units
(Actiflo)and an air backwash system.
v. WTP Solids Handling Improvements:
This project includes the installation of solids thickening equipment and the
improvement of solids storage facilities.
(g) Since this Special Order is by consent,neither party will file a petition for a contested
case or for judicial review concerning its terms.
2. Scheduled Activities and deadlines:

Town of Siler City—Siler City WWTP
EMC SOC WQ S22-003
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(a) The Town shall undertake the following Scheduled Activities by the due date set forth
below:
SCHEDULED ACTIVITY DUE DATE
Quarterly Reports:
Submit Quarterly Nutrient Optimization Reports Beginning
(see Paragraph 3 below) January 30,2023
Beginning on the
Submit Quarterly SOC Progress Reports quarter following
(see Paragraph 3 below) issuance of the
SOC
For Collection System Permit WQCS00056:
Apply for permits for Main Interceptor Replacement Project February 28,
2023
Award Construction Contract for Main Interceptor Replacement Project December 30,
2023
November 30,
Apply for permits for ARPA Sewer Rehabilitation Project
2023
Award Construction Contract for ARPA Sewer Rehabilitation Project March 30,2024
Complete construction on Main Interceptor Replacement Project June 30,2024
Complete construction on ARPA Sewer Rehabilitation Project June 30,2025
For NPDES Permit NC0026441:
Submit an Authorization to Construct application for 6.0 MGD WWTP November 30,
Expansion 2022(MET)
Acquire and maintain temporary sludge handling equipment for winter December 1,
months(Dec 2022—Mar 2023) 2022(MET)
Submit drafts of updated Industrial User Permits(IUPs)for all Significant December 1,
Industrial Users(SIUs) 2022(MET)
Within 30 days of
Issue the updated IUPs to all SIUs with appropriate compliance schedules Division approval
of draft IUPs
Purchase and install supplementary aeration equipment in oxidation July 1,2023
ditches
Acquire and maintain temporary sludge handling equipment for winter December 1,
months(Dec 2023—Mar 2024) 2023
Acquire and maintain temporary sludge handling equipment for winter December 1,
months(Dec 2024—Mar 2025)until permanent sludge handling 2024
equipment is certified and fully operational
Complete construction of 6.0 MGD WWTP Expansion) December 31,
2024
For the Town's Water Treatment Plant(WTP):
Begin construction of WTP Pretreatment Improvements June 1, 2022
(MET)
1 This deadline does not apply to the addition of the 2 MGD third treatment train.The Town's NPDES permit
requires that the construction of the third treatment train be completed by August 31,2024.

Town of Siler City—Siler City WWTP
EMC SOC WQ S22-003
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Increase sludge removal frequency to,at minimum,every 4-6 weeks August 2022
throughout the term of this SOC (MET)
Install baffles in the sludge lagoon September 2022
(MET)
Submit a draft IUP for the Town's WTP December 1,
2022(MET)
Within 30 days of
Issue an IUP for the Town's WTP Division approval
of draft IUP
Acquire and maintain temporary sludge handling equipment for winter December 15,
months(Dec 2022—Mar 2023) 2022(MET)
Install a sedimentation fence below the WTP's pump station December 15,
2022(MET)
Complete construction of WTP Pretreatment Improvements July 31,2023
Acquire and maintain temporary ryslud sludge handling equipment for winter December 1,
months(Dec 2023—Mar 2024) 2023
Begin construction of WTP Solids Handling Improvements February 1,2024
Acquire and maintain temporary sludge handling equipment for winter December 1,
months(Dec 2024—Mar 2025)until permanent sludge handling 2024
equipment is certified and fully operational.
Complete construction of WTP Solids Handling Improvements February 1, 2025
(b) No later than fifteen(15)calendar days from the due date for any Scheduled Activity in
Paragraph 2(a),the Town shall submit to the Division's Raleigh Regional Office written
notice of compliance or noncompliance therewith. In the case of noncompliance,the
notice shall include a statement of the reason(s)for noncompliance, remedial action(s)
taken, and a statement identifying the extent to which subsequent dates or times for
accomplishment of the Scheduled Activity may be affected.
(c) In the event the Town becomes aware of contractor delays that would prevent the Town
from meeting a due date for a Scheduled Activity,the Town may submit a request to the
Division for up to a 90-day deadline extension. This extension request must be received
by the Division no later than 30 days prior to the due date of the applicable Scheduled
Activity as set forth in Paragraph 2(a) and will only be granted on a one-time basis per
Scheduled Activity. In order to be consistent with the NPDES Permit NC0026441,this
extension does not apply to the Scheduled Activity requiring the completion of the 6.0
MGD WWTP Expansion project.
The extension request shall include the reason for the delay and include documentation
from the contractor regarding the delay and documentation of any steps the Town has
taken to prevent the delay and minimize the impact to other Scheduled Activities. Based
on the information provided by the Town,the Division shall determine whether the Town
has made the necessary showing.
(d) If the project scope for any Scheduled Activity changes,the Town shall communicate the
changes to the Division's Raleigh Regional Office and receive approval.
3. The Town shall submit to the Division quarterly reports as follows:

Town of Her City—Siler City WWTP
EMC SOC WQ S22-003
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(a) Quarterly SOC Progress Reports, shall detail the work and activities undertaken and
completed on all Scheduled Activities listed in Paragraph 2(a) and all Action Items listed
in Paragraph 4(a). The Quarterly SOC Progress Reports shall summarize the source and
amount of any additional wastewater flows the Town has accepted into its Collection
System and WWTP pursuant to Paragraph 4. The Town shall maintain wastewater flow
acceptance records and provide them upon request.
(b) Quarterly Nutrient Optimization Reports, shall document the implementation of the
optimization recommendations, from the report submitted to the Division in November
2020, and describe the results.
(c) All quarterly 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
• one copy must be mailed to the Water Quality Permitting Section/NPDES, 1617
Mail Service Center Raleigh,NC 27699-1617
(d) The first Quarterly Nutrient Optimization Report shall be submitted to the Division on or
before January 30,2023. The first Quarterly SOC Progress Report shall be submitted to
the Division on the first quarter following the issuance of this SOC.All subsequent
quarterly reports shall be due to the Division no later than the thirtieth(30th) day of
January,April, July,and October for the duration of this SOC.
4. Authorization to accept new wastewater flows upon completion of all Action Items in each
Phase:
(a) As set forth below,the Commission shall authorize the Town to accept new wastewater
flows upon the Town's completion of ALL "Action Items" for each"Phase" in amounts
set forth below:
Action Items by Phase Amount of Flow to
be accepted:
PHASE 1:
• Submit an Authorization to Construct application to the Division
for the Town's 6 MGD WWTP Expansion by November 30,
2022(COMPLETED)
• Submit a draft IUP for the Town's WTP to the Division by
December 1,2022(COMPLETED)
• Submit drafts of the updated IUPs to the Division by December 50,000 GPD
1,2022(COMPLETED)
• Require Mountaire to resume dechlorination(COMPLETED)
• Install baffles in the Town WTP's sludge lagoon by September 1,
2022(COMPLETED)
• Install temporary sludge handling equipment at the Town's
WWTP and WTP for the winter months(December 2022 through

Town of Siler City—Siler City WWTP
EMC SOC WQ S22-003
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March 2023)(COMPLETED)
PHASE 2:
• Submit the first Quarterly Nutrient Optimization Report to the
Division by January 30,2023.(COMPLETED)
• Provide documentation,no later January 30,2023,that the
supplemental aeration equipment for the Town's WWTP has
been ordered(COMPLETED)
• Begin construction of the Town's 6 MGD WWTP Expansion
• Install supplemental aeration equipment in the Town WWTP's 75,000 GPD
oxidation ditches
• Issue an IUP to the Town's WTP
• Issue all updated IUPs with appropriate compliance schedules
• Provide summary table of expenditures to the Division for all
items related to improving the treatment process at the Town's
WWTP and WTP(except the Town's 6 MGD WWTP expansion
and Collection System inflow and infiltration projects)through
June 30,2023
PHASE 3:
• No overflows2 from the Town's WTP from the date of execution
of this SOC to December 31,2023
• Complete construction and begin operation of the Town's WTP 00,000 GPD
Pretreatment system
• Provide updated summary table of expenditures to the Division
for all items related to improving the treatment process at the
Town's WWTP and WTP through December 31,2023
PHASE 4:
• Maintain temporary sludge handling equipment at the WWTP
and WTP for the winter months(December 2023 through March
2024) 100,000 GPD
• Begin construction of WTP Solids Handling Improvements
• Ensure all SIUs have completed any necessary treatment
upgrades as required in their compliance schedules by June 30,
2024.
TOTAL 325,000 GPD
TheTown shall notifythe Division's Raleigh Regional Office when the Town completes
(b) o g g p
all Action Items for a Phase. If all Action Items within a Phase are completed by the
applicable deadlines and in accordance with all applicable approvals and permits,the
Commission shall authorize the Town to accept new wastewater flows as set forth in
Paragraph 4(a).
5. The Town hereby agrees to the following penalties and payments:
(a) As of February 8,2023,the Town has outstanding(unpaid)civil penalty assessments
totaling$168,841.88, consisting of$168,500.00 in penalties and$341.88 in enforcement
2 For purposes of this SOC"overflow"means any overflow that reaches waters of the state and any overflow to land
that is not within the Town's catchment basin.

Town of Siler City—Siler City WWTP
EMC SOC WQ S22-003
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costs. The Town shall pay an upfront penalty amount of$100,000.00 within thirty(30)
calendar days of execution of this SOC, consisting of$99,658.12 in penalties and
$341.88 in enforcement costs.
(b) The Commission shall hold the remaining balance of outstanding civil penalties
($68,841.88) in abeyance and remit the amounts as provided below.
Action Amount Remitted
Install temporary sludge handling equipment at the Town's
WWTP by the date specified in Paragraph 2(a)(Dec 2023-Mar 10%
2024)
Install temporary sludge handling equipment at the Town's
WWTP by the date specified in Paragraph 2(a) (Dec 2024-Mar 10%
2025)
Install temporary sludge handling equipment at the Town's
WTP by the date specified in Paragraph 2(a) (Dec 2023-Mar I0%
2024)
Install temporary sludge handling equipment at the Town's
WTP by the date specified in Paragraph 2(a) (Dec 2024-Mar 10%
2025)
Purchase and install supplemental aeration equipment in the
Town's WWTP's oxidation ditches by the date specified in 30%
Paragraph 2(a)
Install sedimentation fencing below the Town's WTP's pump 5%
station by the date specified in Paragraph 2(a)
Complete construction of the WTP Solids Handling
Improvements at the Town's WTP by the date specified in 25%
Paragraph 2(a)
The Town's failure to complete the Actions listed in Paragraph 5(b)by the applicable
deadlines shall result in the corresponding amount of outstanding civil penalties that have
been held in abeyance for that Action being due and payable within thirty(30)calendar
days of the deadline for that Action. Because the Actions under Paragraph 5(b) are
Scheduled Activities in Paragraph 2(a), failure to complete an Action will result in a
stipulated penalty pursuant to Paragraph 5(c).
(c) The Town shall pay the following stipulated penalties for failing to meet its obligations
under Paragraph 2(a) and Paragraph 3 of this SOC as set forth below:
Violation Description Stipulated Penalty
Failure to complete a"Scheduled • $1,000 per day for the first 7 calendar
Activity"by the date specified in days
Paragraph 2 • $2,000 per day thereafter
Failure to submit Quarterly SOC Progress •
Reports or Quarterly Nutrient $1,000 per day for the first 7 calendar
Optimization Reports by the date days
specified in Paragraph 3 • $2,000 per day thereafter

Town of Siler City—Siler City WWTP
EMC SOC WQ S22-003
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(d) Payments for balances due under Paragraph 5(a)or that may become due under
Paragraph 5(b)and 5(c) shall be made by certified checks made payable to the North
Carolina Department of Environmental Quality.Payment should be sent to Director
of DWR at 1617 Mail Service Center,Raleigh,North Carolina 27699-1617.Failure to
make timely payment for penalties under Paragraph 5(a), 5(b),and 5(c)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.
6. With respect to Scheduled Activities under Paragraph 2(a),which are subject to penalty
remittance under Paragraph 5(b) and stipulated penalties under Paragraph 5(c), and
Action Items under Paragraph 4(a),the Town may present information to the Division
that the failure to meet the applicable deadline is the result of:
• An act of God;
• An act of war;
• An intentional act or omission of a third party(unless the act or omission is
that of an employee or agent of the Town or if the act or omission occurs in
connection with a contractual relationship with the Town);
• An extraordinary event beyond the Town's control. (This does not include
contractor delays, supply chain issues, SIU non-compliance, or failure to
obtain funding); or
• Any combination of the above causes.
Based on the information provided by the Town,the Division shall determine whether the
Town has made the necessary showing.
7. The infrastructure and operational requirements imposed by this SOC are intended to return
the Town to compliance with its permits—North Carolina Collection System Permit
WQCS00056 and North Carolina NPDES Permit NC0026441. Regardless of the
requirements in this SOC,the Town shall operate its WWTP and Collection System to
prevent and minimize any adverse impacts to the surface waters.Nothing in this SOC limits
the Commission and the Division's authority to enforce the requirements of the Town's
Collection System and WWTP permit. 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 WWTP permit. In exercising its enforcement discretion for permit
condition violations,the Commission will consider the Town's compliance with the
requirements of this SOC.
8. This SOC and any terms or conditions contained herein, hereby supersede any and all
previous Special Orders and Enforcement Compliance Schedule Letters. In the event of an
NPDES permit modification or renewal, any effluent limit or monitoring requirements
contained therein shall supersede those contained in this SOC.
9. This SOC may be amended in writing, signed by both parties,provided the Town has made

Town of Siler City—Siler City WWTP
EMC SOC WQ S22-003
Page 9 of 9
good faith efforts to secure funding, complete all construction and comply with the deadlines
in this SOC.
10. This SOC shall expire January 1,2026. This SOC may be terminated prior to the expiration
date by mutual consent in writing or may be terminated unilaterally upon sixty(60)calendar
days written notice to the other party.
11. During the term of this SOC,the moratorium issued by the Division in May 2022 remains in
effect and the Town is not permitted to accept additional wastewater from any domestic,
industrial,or commercial sources except as set forth in Paragraph 4(a).
12. Failure to meet the requirements/deadlines in Paragraph 2(a) may result in termination of this
SOC.
13. The Town, upon signature of this SOC, shall comply with all schedule dates,terms, and
conditions of this SOC.
For the Town of Siler City:
g„,,,, AefLe;>41 - , i )c)) 3
Thomas K.Price III, Mayor Date
Town of Siler City
For the North Carolina Environmental Management Commission:
Richard E. Rogers, Director Date
Division of Water Resources