Res 2025-056 approving an amendment to the 2024 Regional Wastewater Treatment Cost Sharing Agreement to add Cottonwood Phase 4, Mulberry Meadows, and Mason Developments to the agreement and to modify certain terms of the original agreement

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ARTICLE VI DEFAULT The following sections shall be modified: 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 March 1,2026,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 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. ARTICLE VII MISCELLANEOUS The following sections shall be added: 24. The person executing this Amendment on behalf of the City represents and warrants the City Council has approved this Amendment and authorizes its representative,the City Manager, to bind the City validly and legally to all terms provided herein. 25. The person executing this Amendment on behalf of each Original Developer and each New Developer represents and warrants he/she is the authorized representative of the respective Original Developer or New Developer and is authorized to execute this Amendment. Amendment No. 1 - Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2025-56R Page 9 of 71