Res 2024-078 approving an agreement with Clint Jones, owner of Fleming Farms, Highlander S M Two, Rattler Ridge, LP., and JLBC 710 Investments, LLC, owner of Sedona South, to provide for the sharing of costs for the construction

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City's obligation to make Wastewater Services available to the Customers within each Tract and District shall be in the amounts reflected in the Absorption Schedule attached hereto and such obligation is explicitly not conditioned upon the construction and completion of the Interim Plant,Main Lift Station or the Plant. The City is obligated to make Wastewater Services available to the Customers within each Tract and District in accordance with the Absorption Schedule, commencing on September 1, 2025 and continuing thereafter, increasing the number of LUEs of available Wastewater Services annually until the total number of LUEs allocated to each Tract and District, per the Absorption Schedule, are provided. Notwithstanding the foregoing, the City shall not be obligated to provide Wastewater Services to the Customers within each Tract or District until such time as such Developer or District has constructed the Improvements, in accordance with the Regulatory Requirements, necessary to connect such Tract or District to the then-existing Wastewater Collection System or the Main Lift Station in accordance with City Standards. 2. City's Discharge Permit. The City shall file applications with the Commission for (i) the Discharge Permit within one (1) year and (ii) the Fleming Farms Discharge Permit amendment within six (6) months of the Effective Date and shall use all reasonable efforts to obtain the Discharge Permit and the amended Fleming Farms Discharge Permit within six (6) years of the Effective Date. The City shall bear all costs and expenses arising under this Section. The Parties agree not to protest, cause any protests, or otherwise act or cause any actions that may be construed to prevent, frustrate, delay, or obstruct the City's pursuit of the Discharge Permit or the amendment to the Fleming Farms Discharge Permit. 3. City's Main Lift Station or Collection Facility. The City shall construct the Main Lift Station or some other collection facility at the Plant Site on or before September 1, 2025, for the Developers and Districts to connect their respective Improvements to such facility. 4. Developer or District Improvements. a. Each Developer or District will be responsible, at its sole cost and expense, for permitting, designing, and constructing all portions of the Wastewater Collection System located within the respective Developer's Tract or the respective District ("Internal Improvements") in accordance with the City Standards. Further, each Developer or District will be responsible, at its sole cost and expense, but subject to any cost-sharing by and among any of the Developers or the Districts, for the permitting, designing, and constructing all portions of the Wastewater Collection System that are not located within the respective Developer's Tract or respective District or the Plant Site to connect the Developer's Tract or the District to the Main Lift Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 9 of 47