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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obligation to continue to provide the Sedona South Initial Wastewater Services for which the LUEs have been paid for to the Customers in Sedona South, and (ii) the City's obligations set forth in Article VI, Section 7, and the Developers will not pursue any other additional recourse. In accordance with Article II, Section 3, the City shall timely construct the Main Lift Station; provided, however, if the City has met that obligation, the City shall not be obligated to provide Wastewater Services to a Developer's 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 Developer's Tract or District to the City's system or the Main Lift Station in accordance with City Standards. 2. City's Failure to Obtain Discharge Permit. If the City obtains the amended Fleming Farms Discharge Permit, but fails to obtain the Discharge Permit in accordance with this Agreement, the City shall continue to provide Wastewater Services to the Customers until the earlier to occur of (i) the date that is three (3) years after the date on which the City is obligated to obtain the Discharge Permit hereunder, or (ii) the date on which a new treatment plant is constructed and operational on the Plant Site. During the aforementioned period in which the City will continue to provide Wastewater Services to the Customers,the City agrees (i) to be a co-applicant on an application to the Commission with a District designated by the Developers under a separate agreement (the"District Designee') to further amend the amended Fleming Farms Discharge Permit to increase its overall capacity to a capacity sufficient to serve all of the Tracts and Districts in accordance with the Absorption Schedule and to execute such applications or other documents necessary to be a co-applicant within thirty (30) days of a written request by the District Designee; (ii) to cooperate with the District Designee in its filing of construction plans with the Commission for the new treatment plant to be built by the Developers or Districts on the Plant Site; and, (iii) if necessary, lease a portion of the Plant Site to the Developers or Districts on which they will construct the new treatment plant. The City shall not protest, cause any protests, or otherwise act or cause any actions that may be construed to prevent, frustrate, delay, or obstruct the District Designee's efforts to further amend the amended Fleming Farms Discharge Permit. After the new amendment to the amended Fleming Farms Discharge Permit is issued by the Commission, and within sixty (60) days of a written request from the District Designee, the City agrees to withdraw in writing as a co-permittee under the newly amended Fleming Farms Discharge Permit and to file such paperwork that is required with the Commission to withdraw as a co-permittee. Further,within sixty (60) days of a written request from the District Designee, the City agrees to convey the Plant Site to the District Designee. In such event, the District Designee agrees to use or cause the use of wastewater treatment capacity approved under the newly amended Fleming Farms Discharge Permit to provide wholesale wastewater treatment service to the Tracts and Districts pursuant to the terms of the separate agreement(s) among the Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 18 of 47