Articles of Agreement made and entered into by and between the Village of Johnson, hereinafter called the "Village" Vermont acting through its Trustees, and the Town of Johnson Vermont hereinafter called the "Town", acting through its Selectboard.

WITNESSETH

Whereas, the Village of Johnson owns and operates a system of sanitary sewers and a sewage treatment facility and has available reserve capacity; and

Whereas, pursuant to the authority granted the Village under 24 VSA Sections 3503 and 3611, the Village and the Town desire to enter into an agreement to allocate some of said capacity to the Town of Johnson; and

Whereas, the Town, in order to promote orderly planned growth within the Town, has identified and mapped those areas it desires to receive sewer service, and intends to adopt a Sewage Ordinance for the purpose of administering this allocation of sewer capacity within this identified area, which area shall hereinafter be known as "Town Sewer Service Area" (TSSA). This TSSA as it is currently defined and mapped in attachment A of this agreement, may receive allocations of sewer capacity from the Village. Any modification to the currently defined and mapped TSSA shall require the consent of both parties to the agreement; and

Whereas, the Town and Village are co-applicants for a CDBG grant to re-locate a trailer park out of the floodplain and have agreed to allow sewer connections of those trailers that will be located in the town; and

Whereas, the Village is amending its Sewer and Allocation Ordinances to allow the extension of sewer lines, sewer hookups and allocation of capacity into Town Sewer Service Area, and subject to its final approval;

Be it therefore resolved, in consideration of the mutual promises and covenants herein, the parties agree as follows:

1. The Village agrees to allocate up to a maximum total capacity of 25, 000 gallons per day to the Town, which shall be allocated only within the mapped Town Sewer Service Area (TSSA). The Village reserves the right to reject an application for allocation of capacity, if the application does not meet the requirements of the Village of Johnson Ordinance Regulating the Use of Public and Private Sanitary Sewage Systems, henceforth, the "Ordinance". This agreement shall go into effect upon the adoption of the Village of Johnson Ordinance Regulating Sewer the Use of Public and Private Sewerage Systems, the adoption of the Town of Johnson Ordinance Regulating Connections to the Village Sewer System within the Town Sewer Service Area and the signing of this agreement by both parties.
   
2. An applicant for sewage permits located within the TSSA will first obtain permission from the Selectboard as required by the Town's Sewer Service Area Ordinance (TSSAO), on forms provided by them. Application shall then be made to the Village Trustees on forms provided by them. Permit review, capacity allocation, determination of fees, etc. shall be governed by the Village Ordinance.
   
3. Once allocation and connection permits have been granted, connections, expansions, extensions, use of public sewers, sewer rents, penalties, etc. shall be governed by the Village Ordinance.
   
4. The Village and Town agree to provide sewage allocation capacity to the proposed Highland Heights Mobile Home Park, as currently approved, which allocation shall be part of the 25,000 gpd block of allocation granted by the Village.
   
5. The Town agrees to convey all right and title to the so called East Johnson Sewer System including lines, structures, and easements to the Village, who thereafter will own, control and maintain said system and any and all sewer lines and extensions as may be approved under the allocation of capacity approvals.
   
6. The Village shall bill and collect all connection fees, capacity allocation fees, and sewer rents, including the East Johnson line, according to a fee schedule adopted and from time to time amended for that purpose. Sewer rents for the East Johnson line will be subject to rates established by the Village. The Village agrees to collect fees currently in effect from existing users of the East Johnson System for retirement of the indebtedness of said system, and reimburse the Town for that amount on an annual basis until said debt is retired.
   
7. Except for the existing users with existing hook ups to the East Johnson line, the Village of Johnson Fee Schedule may include differential fees for users in the Town. The purpose of a differential fee is to recover a reasonable portion of capital investment which created the available capacity, already paid for by Village rate payers.
   
8. The Town agrees and consents that the Village shall have the authority to levy and collect such taxes and rents from the users who reside in the Town, which authority shall be limited to the statutory, ordinance or charter authority granted to the Village for the assessment and collection of such taxes and rents within the Village.
   
9. The Town further agrees and consents that the Village shall have the authority to excavate and open Town highways as may be necessary to replace, repair and maintain sewer lines, subject to the condition that the Village shall reasonably return to like condition such highways affected and provide reasonable notice to the Town prior to such excavation.
   
10. Unused capacity allocated by the Village for applicants in the Town shall be governed by the Village Ordinance, except that such unused capacity will be available for re-allocation as part of the original 25,000 gpd block of allocation.
    
11. All definitions referred to in this agreement will be as defined in the Village Ordinance.
    
12. The parties agree that any dispute arising out of this agreement not resolved within 45 days of its submission to the other party, shall be finally resolved by Board of Arbitration of three members, one appointed by the Town Selectboard, one by the Village Trustees and one agreed to by both boards. Such decision will be binding, and reached and delivered to both boards within 4510 days of the date the evidence is deemed complete of appointmentby the of the Board of Arbitration.
    
13. Ackowledgmentof Arbitration. The parties understand that this agreement contains an agreement to arbitrate. After signing document, the parties understand that neither party will be able to bring a lawsuit concerning any dispute that may arise which is covered by the arbitration agreement, unless it involves a question of constitutional or civil rights. Instead, the parties agree to submit such a dispute to a Board of 3 Arbitrators, as defined above.
    
14. This agreement shall become effective upon execution and be for a term of 20 years or the useful life of the Wastewater Treatment Facility, whichever is shorter.
    
15. This agreement may be amended or renewed in writing by such terms and conditions as agreed to by both parties.

In the presence of: Village of Johnson by its Chair

In the presence of: Town of Johnson by its Chair

State of Vermont )

Lamoille County ) ss.

At Johnson, this ______day of _______ 2002, _______________________ Village of Johnson Trustee Chair did personally appear before me and did acknowledge by this instrument, by him sealed and subscribed, to be his free act and deed and the free act and deed of the Village of Johnson

Before me ______________________________

Notary Public

State of Vermont )

Lamoille County ) ss.

At Johnson, this ______day of _______ 2002, _______________________ Town of Johnson Selectboard Chair did personally appear before me and did acknowledge by this instrument, by him sealed and subscribed, to be his free act and deed and the free act and deed of the Town of Johnson

Before me ______________________________

Notary Public