2011-421 Planning - City of Durham - Interlocal Agreement for construction, operation of Water & Sewer Facilities in Eno EDD

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INTERLOCAL AGREEMENT BETWEEN ORANGE COUNTYAND THE CITY OF DURHAMFOR CONSTRUCTIONAND OPERATION OF WATER AND SEWER FACILITIES IN THE ENO ECONOMIC DEVELOPMENT ZONE OF ORANGE COUNTY, page 2 process if they jointly determine it is prudent to do so. If the managers do not jointly agree it is prudent to suspend or abandon the process, it is agreed that suspension or abandonment will not be effective unless the parties' governing bodies jointly agree to suspend or abandon. 4. Pa~t_ For each construction contract, Orange will select payment option A or payment option B and will notify Durham of its selection within twenty days after Durham shall have executed the construction contract. Payment option A: Durham will invoice Orange from as invoices are received from the selected construction contractor for payments made or required to be made under the construction contracts. Orange will pay each invoice within thirty (30) days after it receives it. Payment option B: Orange will reimburse Durham for payments made or required to be made under the construction contracts over a 10-year period, beginning on substantial completion, at an annual interest rate of 5%. The remainder of this paragraph applies to both payment options. [Provided however Orange shall not be required to pay for services that were not appropriately authorized or ratified by Durham or which Durham did not find to be satisfactorily performed by the contractor, provided that Durham will not be liable to Orange for making a finding of satisfactory performance. Durham will insert in the construction contracts a provision stating, "Orange County, a N. C. political subdivision, is a third-party beneficiary of this contract." 5. Construction Standards. In all respects except to the extent otherwise stated in this contract, the construction will be done in accordance with (i) Durham standards, requirements, and procedures, including approvals of plans, conducting inspections, requiring tests and certifications, and requiring as-built drawings, and (ii) any applicable federal and state standards. 6. Ownership of and Responsibility for Infrastructure. Durham will be the owner of and responsible for the operation and maintenance of the infrastructure constructed under the construction contracts. All construction contracts shall provide for the indemnification and defense by the contractors of both Orange and Durham. 7. Fees and Charges. As long as a particular property is located outside Durham's corporate limits, Durham will impose, process, and collect all fees and charges with respect to that particular property, including acreage fees, connection charges, frontage charges, capacity charges, and utility rates, as Durham charges on other locations outside Durham's corporate limits. Except to the extent specified otherwise, Orange will have no right to any of those fees and charges, and nothing in this agreement will affect the use or disposition of those fees and charges. 8. Reduction in Payments from Orange. The acreage fees and frontage charges collected by Durham from the Zone will be used towards payment of the design and the construction of the infrastructure (collectively, the "Dedicated Receipts"). ("Acreage fees" means impact fees (as defined in Durham City Code sections 30-81 et seq.) that are based on area.) No other fees or charges collected by Durham, such as capacity and connection charges, will be used for that purpose. The amounts to be paid by Orange to Durham under paragraph 4 above in a particular Year will be reduced by the Dedicated Receipts received by Durham in that Year. If the Dedicated Receipts received by Durham in that Year exceed the amounts to