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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EXHIBIT 111" Developers and/or the Districts that shall fairly allocate the wastewater capacity under the newly amended Fleming Farms Discharge Permit to each Tract and District in accordance with the Absorption Schedule and the costs associated with the provision of such wholesale wastewater treatment in accordance with their respective Proportionate Share. Once the new plant is operational,the City agrees to convey all Facilities then-owned by the City as part of the Wastewater Collection System to each of the respective Districts within thirty (30) days after receipt of written notice from the Developers or the Districts, at no additional cost to the Developers and/or Districts 3. City's Failure to Construct the Plant. If the City obtains the Discharge Permit, but fails to commence construction of the Main Lift Station and Plant in accordance with this Agreement, the City agrees to assign the Discharge Permit to the District Designee for the District Designee to be the wholesale wastewater service provider to the Tracts' and the Districts in the total capacity for each such Tract and District provided in the Absorption Schedule. In such event, the District Designee agrees to use or cause the use of wastewater treatment capacity approved under the Discharge Permit to provide wholesale wastewater treatment service to the Tracts and the Districts pursuant to the terms of a separate agreement(s) among the Developers and/or the Districts. In the event of a City default under this Section, the City agrees to convey all Facilities constructed by the Developers and/or the Districts and/or the City to the respective Developers or Districts on or before the earlier of (i) the date on which the Developers or Districts have constructed a wastewater treatment plant on the Plant Site, or (ii) the third (3rd) anniversary of the City's failure to commence construction of the Main Lift Station and Plant. The City will use reasonable diligence to effect these conveyances within sixty (60) days after receipt of written notice from the Developers or the Districts, at no additional cost to the Developers and/or Districts. 4. Deadline for Permit and Construction Commencement. Notwithstanding any provision of this Agreement to the contrary (other than Article II, Section 6 and subject to the provisions providing for the City to take or execute corrective or curative measures in this Article VI, Sections 1, 2 and 3 above), if the City fails to obtain the Discharge Permit and commence construction of the Plant within six(6) years of the Effective Date, the City shall refund all LUE Fees paid by the Developers or the Districts, with the exception of, with respect to JLBC, any LUE Fees used to secure Sedona Initial Wastewater Services less any and all costs incurred by the City to provide Wastewater Services to Customers prior to the City's default, within sixty (60) calendar days after the sixth (6th) anniversary of this Agreement. Provided, however, in such event, the City shall continue to provide Wastewater Services to the Customers within each of the Districts and the Tracts, until such time one or more of the Developers and/or the Districts construct wastewater treatment plant(s)sufficient to permanently serve the Tracts' Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 19 of 47