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regulatory compliance, two (2) water transmission lines from the <br />water treatment plant to an underground concrete vault on <br />Fieldcrest property and that concrete vault, all as may be <br />improved or expanded in the future ("Water Treatment Facility"). <br /> <br /> For the purposes of this Agreement, the Water Treatment <br />Facility shall not include distribution and piping lines (e.g., <br />hydrants, elevated tanks, meters and other components of the <br />delivery system to customers). <br /> <br /> 2. Operation Of Water Treatment Facility By <br />Fieldcrest. Pursuant to the terms and conditions of this Agree- <br />ment, Fieldcrest agrees to operate the Water Treatment Facility <br />for City. The scope of cpe~a.~ions shall include the following: <br /> <br /> a. Fieldcrest shall provide and bear the cost of all <br />labor, supplies (incl,uding, without limitation, water <br />treatment chemicals and laboratory supplies) fees, parts and <br />equipment not constituting a Component (as defined below) <br />and electricity necessary for the operation of the Water <br />Treatment Facility as required by this Agreement, including <br />all laboratory testing for water control standards and <br />regulatory requirements, compliance reports, accounting and <br />reporting services, supervision and adjustment of flow <br />rates, chemical feed rates, high service pumping <br />adjustments, backwash operations, maintenance of operational <br />records, routine maintenance, repair and replacement of the <br />Components of the Water Treatment Facility, sampling, <br />testing and chemical treatment of Kannapo!is Lake waters as <br />necessary to pretreat water prior to intake to the Water <br /> <br />Paragraph 2.e., property and casualty insurance, sampling, <br />testing and reporting regarding bacteria, mowing and brush <br />cutting the area between Pump Station Road and Kannapolis <br />Lake (including Kannapolis Lake dam). Ail of the costs and <br />expenses set out in this subparagraph 2.a. shall be defined <br />as "Total Operating Costs" Fieldcrest and City shall <br />annually agree on an annual budget for Total Operating <br />Costs, and Fieldcrest shall not make expenditures in excess <br />of 110% of such total budgeted amount without the City's <br />prior written consent. <br /> <br /> b. It is understood and agreed by City, that City <br />will reimburse Fieldcrest, within twenty (20) days after <br />receipt of an invoice, for the cost of labor, materials and <br />parts necessary for the replacement of any Component of the <br />Water Treatment Facility. For the purposes of this <br />Agreement, any single part or piece of equipment which is <br />used for the treatment of water or used in connection with <br />the operation of the Water Treatment Facility and which has <br /> <br />-2- <br /> <br /> <br />