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402 6. The County shall solely be responsible for establishing any and all regulations to enforce any permit or mitigation requirements that are not directly associated with the operation, maintenance and ownership of the Reservoir such as, but not limited to, the protection of the area fifty feet (50~) each side of all streams in Cabarrus County as required by the mitigation requirements. 7. WSACC will cooperate fully with the City of Concord and the City of Kannapolis in the day-to-day operation of the Reservoir and shall enter into a Joint Operational Agreement as requested and approved by N.C. Department of Environmental Health and Natural Resources. 8. WSACC agrees to provide employment for the two (2) employees assigned to the Reservoir with jobs of equal pay and no less responsibility. WSACC shall not be obligated to assign these employees to positions at, or involved with, the operation and maintenance of the Reservoir. The two (2) employees will be given full credit for all retirement, vacation, sick and compensatory leave time, years of service as it may relate to benefits, and will be given benefits that are available to all WSACC employees which are similar to those provided by the County. 9. Ownership of all vehicles and equipment assigned to the Reservoir by the County for the purpose of operation and maintenance will be transferred to WSACC on July 1, 1997. 10. WSACC shall not be responsible for any debt service payments that relate to the initial construction of the Reservoir. 11. WSACC shall recover all costs for Reservoir operation, maintenance and capital expense, as appropriate, from those entities withdrawing water from the Reservoir through a rate structure that is sufficient to recover such cost. 12. WSACC shall have the flexibility to modify the approach, the contractors or engineers used for various services so long as WSACC accomplishes those tasks necessary for compliance with all permits and regulations and for the safe, cost-effective operation of the Reservoir. 13. WSACC is obligated to honor any outstanding agreements and contracts entered into by the County prior to July 1, 1996, provided the County furnishes the necessary funds for financing the costs and expenses specified in said contracts for services to be provided as stated in each contract and/or Agreement. 14. It is agreed that the County will continue to pay the costs of complying with the mitigation requirements of the construction permits, through June 30, 1997, and WSACC will be responsible for the cost of complying with the mitigation requirements of the construction permits from July 1, 1997, through December 31, 1999. WSACC will be responsible for managing and implementing the terms and conditions of said mitigation contracts. The County and WSACC agree that WSACC will execute such contract, and the County reimburse WSACC for all costs and expenses, through June 30, 1997. 15. The County and WSACC agree that the primary purpose of the Reservoir is to provide a high quality raw water supply for drinking water and that any water recreational activities proposed for the Coddle Creek Reservoir shall be in compliance with State regulations related to water quality and approved by both governing bodies before any action is taken to implement the water recreational activity. The County and WSACC agree that the cost to support the recreational activity will not result in any increases in the raw water rates. 16. Cabarrus County agrees to provide a buffer zone around the Reservoir as required by the State agency regulating water quality in water supply reservoirs. 17. WSACC shall have the authority to contract with the City of Concord, or other jurisdictions, to provide services in place of private contractors or engineers. IN WITNESS WHEREOF, County has executed this Agreement this 20th day of October, 1997, and WSACC has executed this Agreement this .. day of , 1997. CABARRUS COUNTY By: /s/ Sue Casper Chairman, Cabarrus County ATTEST: Board of Commissioners /s/ Frankie F. Bonds Frankie F. Bonds, Clerk This instrument has been preaudited in the manner required by Local Government Budget and Fiscal Control Act /s/ Blair D. Bennett Finance Director