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" and Districts' ultimate wastewater treatment capacity requirements set forth in the Absorption Schedule. During this time, the City may continue its normal billing processes and revenue collection from all Customers in Districts and Tracts receiving Wastewater Services by the City. In such an event, the Developers and/or the Districts agree to use reasonable diligence to construct a wastewater treatment plant(s) and, if such plant(s) is not constructed and operational within three (3) years of the date of the City's Major Default under this Section 4, due to no fault of, or interference or delay caused by, the City, the Developers and/or the Districts shall procure a licensed operator to operate whatever temporary plant the City has placed on the Plant Site and the City shall have no further obligation to provide Wastewater Services to the Customers under this Agreement, except for the City's obligations to the Sedona South Customers under Article II, Section 6. 5. Developer's Failure to Pay LUE Fees. If a Developer fails to pay its LUE Fees by the Payment Dates, and fails to cure such default within thirty (30) days after receipt of written notice of default from the City, the Developer shall be in default and the City's sole remedy for such default shall be to partially terminate this Agreement as to any remaining areas of such defaulting Developer's Tract or applicable District for which no LUE Fees have been paid. In the event of such a default by a Developer, the City will be released from its obligation to reserve Wastewater treatment capacity in the Plant and provide Wastewater Services to the Customers within that Developer's Tract and District beyond any such LUEs for which that Developer has previously paid LUE Fees and reserved for the benefit of the Developer's Tract and District. Notwithstanding the foregoing, a Developer's failure to pay its LUE Fees in accordance with the Payment Schedule shall not affect the City's obligations to reserve Wastewater treatment capacity in the Plant and provide Wastewater Services to Customers within any non- defaulting Developers' Tract and District. If a defaulting Developer subsequently requests to pay its outstanding LUE Fees plus reasonable interest, the City may, but shall not be obligated to, provide Wastewater Services to Customers within that Developer's Tract and District for the unpaid LUEs. 6. Developer's Failure to Provide Easements and Land Conveyances. If a Developer fails to provide an easement and/or a land conveyance as required in this Agreement and fails to cure such default within thirty (30) days after receipt of written notice of default from a non-defaulting Party, the Developer shall be in default and any of the non-defaulting Parties shall first seek to enforce specific performance against the defaulting Developer. If none of the non-defaulting Parties are able to secure specific performance against the defaulting Developer, then: (i) if such default only prevents the City from providing continuous and adequate Wastewater Services to Customers within the defaulting Developer's Tract and District in accordance with the terms of this Agreement, then the City Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 20 of 47