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BOOK 19 P�AGF 9 STATE OF NORTH CAROLINA COUNTY OF LEE INTERIM OPERATIONS AND MAINTENANCE AGREEMENT THIS AGREEMENT made and entered into this day of July 2004, by and between LEE COUNTY (hereinafter referred to as "County "), LEE COUNTY WATER AND SEWER DISTRICT No. I (hereinafter referred to as "District "), and the CITY OF SANFORD ( herinafter referred to as "City ".) WITNESSET11: WHEREAS, the City has placed the County and District on notice that the Operation and Maintenance Agreements dated August 20; 1996, between the City and District and the City and County shall expire and the City will cease maintenance of the County and District water lines on or before August 20, 2004; and WHEREAS, the city intends to submit an offer to purchase the County and District water system provided that the City can secure appropriate financing terms and approval from the Local Government Commission; and WHEREAS, to facilitate operation and maintenance of the water system during the interim period, the parties hereto desire to set forth their rights and obligations to continue maintenance and operation of the water system until June 30, 2005, or until purchase and transfer of the system is complete, whichever comes first. NOW, THEREFORE, for and in consideration of the delay in enforcement actions for the claims of each party against the other, and in consideration of continued good faith efforts to negotiate resolution of issues between the parties, the parties hereto agree as follows: I. Under the existing Operation and Maintenance Agreements dated August 20, 1996, the City will continue to maintain the County and District water system until June 30, 2005, or until purchase and transfer of the water system is complete, whichever comes first, for the amount of $1.89 per thousand gallons of water. 2. In the event the State of North Carolina issues separate ID numbers for distinct portions of the County and District water lines, the District and County agree to perform the additional testing required. It is anticipated that these changes will result in the need for additional tests to be performed, additional fees to be paid to the state, additional chemicals, manpower and supplies will be needed to satisfy the additional state requirements.