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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in the Plant, as reflected in the Absorption Schedule, and the number of LUEs to each respective Tract and District reflected in the Absorption Schedule.The Parties agree that the Absorption Schedule, attached hereto as Exhibit D, represents each Tract's and/or District's projected and maximum annual Wastewater Services requirements in LUEs, beginning no sooner than September 1, 2025. In exchange for the payment of LUE Fees, the City shall allocate and reserve the total annual amount of LUEs of Wastewater Services to the Customers within each Tract and District in accordance with the Absorption Schedule each year, regardless of the active or proposed connections that may exist on any Tract in any given calendar year. 8. City Wastewater Services Commitment. The City's obligation to provide, annually in accordance with the Absorption Schedule, the Customers within each Tract and District with continuous and adequate Wastewater Services is expressly not conditioned upon the completion of the Plant; the City is obligated to provide such Customers with continuous and adequate Wastewater Services in accordance with the annual allocations set forth in the Absorption Schedule through any alternative methods sufficient to provide the Wastewater Services at the same level as if the Plant had been constructed, completed, and placed in service, and such obligation shall only be limited by Article VI, Section 4. 9. Additional LUEs. Once the Plant is completed and operational, the Developers or the Districts may request the City to reserve and allocate additional LUEs of Wastewater Services to the Customers within such Tracts or Districts above and beyond the 6,248 LUEs required to be provided under the Absorption Schedule. The City may, at its sole discretion, provide or decline to provide the additional capacity to the requesting Developers or the Districts. The fee(s) for the additional capacity requested for a Tract or District will be the City's existing impact fee being assessed to other customers at the time of the request. 10. Out of City Wastewater Utilities. Out of City Wastewater Utility rates shall be applicable to the Districts and Tracts, as set forth in Article VII, Section 3, and will apply to any additional LUEs provided by the City. All Customers will be bound by applicable City ordinances, resolutions, and regulations governing rules and regulations for Wastewater Services, including construction standards, connections and disconnections, deposits and billing, and rates for Wastewater Services and related matters. Other than applicable City ordinances, resolutions, and regulations governing rules and regulations for Wastewater Services, there shall not be any other City ordinances, resolutions or regulations pertaining to the Tracts or Districts that are located outside the City's limits and ETJ. Furthermore, for the Developer(s) or District(s) that opt out of the City's ETJ, the City shall not pass or enforce an ordinance, resolution, or regulation that requires such Developer(s) or District (s) to consent to, or apply for, annexation into the City's Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 12 of 47