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587
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<br />federal and state regulatory authority, the Authority, together with its
<br />congtituent units of local government, desires to operate and maintain the
<br />Operating Facilities;
<br /> NOW, THEREFORE, in consideration of mutual promises and covenants
<br />contained herein, Concord and the Authority do hereby agree as follows:
<br /> AGREEMENT
<br /> 1. Operational Responsibility Transfer. As their interests may appear,
<br />Concord and Cabarrus shall transfer responsibility for the operation of the
<br />Operating Facilities to the Authority effective on July 1, 1992 (the "Effective
<br />Date"). On and after the Effective Date, operational responsibility for the
<br />Operating Facilities shall include, but shall not be limited to, the following:
<br /> (a) Financial - Billing and collection of revenue for treatment services
<br /> provided to Concord, Cabarrus County, the City of Kannapolis, the
<br /> Town of Harrisburg, the Town of Mt. Pleasant, Fieldcrest-Cannon,
<br /> Inc., and all other customers who receive sewer transportation,
<br /> maintenance or treatment services from the Authority by or through
<br /> the Operating Facilities or otherwise, including, but not limited
<br /> to, non-domestic surcharge customers. The Authority shall assume
<br /> liability for all expenses incurred for the operation and
<br /> maintenance of the Operating Facilities.
<br /> (b) Compliance - The Authority shall accept responsibility and liability
<br /> for compliance with all NPDES Permit limits and conditions as well
<br /> as all other state and federal laws and regulations which relate to
<br /> the operation and/or use of the Operating Facilities.
<br /> (c) Existing Expenses As their interests may appear, Concord and
<br /> Cabarrus shall pay all operating expenses for the Operating
<br /> Facilities which shall have been incurred by Concord or Cabarrus
<br /> respectively, if any, prior to the Effective Date.
<br /> (d) Operations - The Authority shall operate and maintain the Operating
<br /> Facilities in such a manner so as to provide continuous and reliable
<br /> treatment of wastewater generated from Concord, Cabarrus, the City
<br /> of Kannapolis, the Town of Harrisburg, the Town of Mt. Pleasant and
<br /> by Fieldcrest-Cannon, Inc.
<br /> 2. Transfer of Fund Balance. Concord and the Authority shall employ an
<br />independent auditor to determine the fund balance existing in the operational
<br />fund of the RRRWWTP on June 30, 1992. As audited and determined under the terms
<br />and conditions of the original federal grant, Concord shall transfer the audited
<br />fund balance to the Authority effective July 1, 1992. Funds encumbered in
<br />fiscal year 1991-92 to cover outstanding expenses of the RRRWWTP shall not be
<br />included in the transfer except for capital line items assigned to improvements
<br />in process at the RRRWWTP.
<br /> 3. Continuation of Service. The Authority agrees to continue to provide
<br />wastetreatment service to that same service area as is served by the RR~W-WTP on
<br />the Effective Date, but thereafter, shall not, necessarily, be limited to that
<br />same service area.
<br /> 4. User Charge System. The Authority agrees to adopt a user charge
<br />system adequate to cover operating expenses of the Operating Facilities which
<br />shall include, but which shall not be limited to: (a) the replacement of
<br />facilities and equipment; and (b) such improvements to or expansion of the
<br />Operating Facilities as may be required by rule, regulation, generally accepted
<br />engineering, health, or environmental standards or increased usage.
<br /> 5. Existing RRRkr~Tp Employees. Upon the Effective Date, Concord and the
<br />Authority agree that the Authority shall assume responsibility for the staff of
<br />the RRRWWTP.
<br /> 6. Lease and Transfer of Facilities and Infrastructure. Concord and
<br />Cabarrus agree to complete the transfer or lease of the Operating Facilities in
<br />accordance with that "Settlement Agreement" dated January 6, 1992, by and
<br />between Concord and Cabarrus, as amended.
<br /> 7. NPDES Permit Transfer. Concord and the Authority agree to forward to
<br />the North Carolina Division of Environmental Management (DEM) an appropriate
<br />letter requesting that Concord no longer be the Permittee and that the Authority
<br />become the Permittee for the NPDES Permit issued for the operation of and
<br />discharge from the RRRW-WTP.
<br /> 8. Acceptance of Wastewater for Treatment. The Authority recognizes that
<br />each constituent unit of local government which has formed the Authority must
<br />obtain approval from the North Carolina Department of Environment Health and
<br />Natural Resources (DEHNR) of any proposed construction of new sewer lines, both
<br />private and public, and that such approval can be granted only if the Authority
<br />can accept and treat the volume of wastewater projected to arise from the new
<br />construction. The Authority agrees to adopt a policy which will comply with
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