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