BC 1991 12 16 - Laserfiche WebLink

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403 6. Lease and Transfer of Facilities and Infrastructure. Within ninety (90) days of the creation of the Authority as outlined in Paragraphs 4 and 5, Concord and Cabarrus County shall execute and enter into leases with the Authority of their respective right, title and interest, if any, in and to the Rocky River Regional Wastewater Treatment Plant, and all interceptor sewer lines and appurtenant metering and pumping stations including, but not limited to, the Rocky River, Coddle Creek, New Irish Buffalo Creek, Coldwater Creek, Three Mile Branch, and Coddle Creek/Wolf Meadow Branch Interceptor Sewers, the Dutch Buffalo Creek Interceptor Sewer and force main, the Afton Run Branch Interceptor and force main, and the Rocky River/Harrisburg Outfall (the "Facilities and Infrastructure") upon the following terms and conditions: (a) The respective leases shall be for an initial term of twenty (20) years for the sum of One Dollar ($1.00) per year with an option granted to the Authority at the conclusion of the 20th year, to purchase the Facilities and Infrastructure for the sum of One Dollar ($1.00): (b) The respective leases shall be on a "triple net" basis, i.e. the Authority shall assume all expenses associated with the operation and maintenance of the Facilities and Infrastructure, including the payment of all outstanding debt obligations, and, to the extent permitted by law, shall indemnify and save Concord and/or Cabarrus County respectively from any liability associated with such operation and maintenance, including, but not limited to, any costs associated with environmental compliance and/or liability for the Facilities and Infrastructure; and (c) The approval of all required state and federal regulatory authorities, and all permits or other documents required by law shall have been obtained to the extent then available, and, if necessary, the approval of the owner of any general obligation or revenue bonds secured in part by the Facilities and Infrastructure shall have been obtained. Ail operational expenses and costs incurred in the ordinary course shall be paid current through the effective date of such leases by the party or parties incurring same, and the sum of the outstanding general obligation or revenue bond, note or like obligations assumed by the Authority on the effective date of such leases shall be no greater than the sum which exists on the effective date of this Agreement. Concord and Cabarrus intend to discuss with the Environmental Protection Agency (the "EPA") the transfer to the Authority of those elements of the Facilities and Infrastructure originally funded in part by grants from the EPA instead of their lease as provided hereinabove and, if possible, to obtain the consent of the EPA, if required, to such transfer. If such consent is obtained, subject to the provisions of the Articles of Incorporation of the Authority, Concord and Cabarrus County intend to effectuate such transfer to the Authority of the Facilities and Infrastructure, instead of their lease, and to amend this Agreement accordingly. 7. Water and Sewer Contract Modifications. (a) Rescission. Within fifteen (15) calendar days of the execution of this Agreement, Concord and Cabarrus County shall rescind the Water and Sewer Contract by documentation satisfactory to counsel for Concord and Cabarrus County. (b) Replacement Grant. Cabarrus County shall make a grant to Concord replacing that set forth and delivered to Concord pursuant to the Water and Sewer Contract (the "Replacement Grant")° The Replacement Grant amount shall be for $1.5 million plus all interest accrued thereon but not yet paid over to Cabarrus County. Concord shall continue to hold such monies until the replacement grant is put into effect. The replacement grant shall specify that it shall be utilized only for construction of sewer interceptor lines (and not for water lines) to the Kings Grant area as more particularly described in the Water and Sewer Contract to be rescinded. The form and content of such replacement grant shall be as counsel for Concord and Cabarrus County shall agree and it shall be accompanied by an opinion letter from both counsel that it is enforceable in accordance with its terms. The terms of such replacement grant shall be finalized and approved by Concord and Cabarrus County prior to the execution of an instrument rescinding the disputed Water and Sewer Contract; and