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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(b) Rattler Discharge Permit. Promptly following the Effective Date of this Agreement, Rattler and the City will jointly request the State Office of Administrative Hearings ("SOAH")to abate the current proceedings involving the Rattler Discharge Permit indefinitely until the amended Fleming Farms Discharge Permit is issued. If SOAH refuses to grant an indefinite abatement, the Parties will request in the alternative a twelve (12) month abatement. If SOAH grants either abatement and the amended Fleming Farms Discharge Permit is issued during such abatement,the City and Rattler will jointly request the dismissal of the SOAH case and Rattler will withdraw its permit application for the Rattler Discharge Permit with the Commission. If the amended Fleming Farms Discharge Permit is not obtained within the abatement period, the Parties will seek another abatement and will continue to do so until the amended Fleming Farms Discharge Permit is issued. If SOAH refuses to grant any abatement, the Parties agree that the City will withdraw its protest of the Rattler Discharge Permit application so that the SOAH case can be dismissed and the Rattler Discharge Permit may be issued, in exchange for Rattler agreeing to in writing to withhold any use of the Rattler Discharge Permit until the earlier of (i) a Major Default by the City under the Agreement, or (ii) the issuance of the amended Fleming Farms Discharge Permit. Upon the issuance of the amended Fleming Farms Discharge Permit, Rattler will file the appropriate documents with the Commission to have the Rattler Discharge Permit terminated. VI. DEFAULT 1. City's Failure to Commence and Continue Provision of Wastewater Services. If the City fails to abide by the Absorption Schedule either through (i) a failure to commence making the Wastewater Services available to the Tracts and the Districts, or any of them or portion of them as set forth in the Absorption Schedule, on September 1, 2025, or (ii) a failure to provide continuous Wastewater Services to the Tracts and the Districts, or any of them or portion of them, in accordance with the Absorption Schedule (whether under the City's existing permit, the amended Fleming Farms Discharge Permit, or the Discharge Permit), and fails to: (i) cure such default within sixty (60) days after receipt of written notice of default from the Developers, the City shall be in default. If such a default occurs and the City has not obtained the amended Fleming Farms Discharge Permit,the City shall promptly commence the process of (and diligently pursue to completion) reassigning the Fleming Farms Discharge Permit to Jones. In the event the Developers terminate this Agreement,in whole,under this Section 1,the City shall have no further obligation under this Agreement, except for (i) the City's Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 17 of 47