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4 <br /> INTERLOCAL AGREEMENT BETWEEN ORANGE COUNTY AND THE CITY OF DURHAM FOR CONSTRUCTION AND <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. Payment. 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 />