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From : James W. Dilworth, Attorney PHONE No. 714 662 1206 <br />..Waft..-- <br />Jun.10 1993 10:56AM P01 <br />714 082 1206;#11/18 <br />NOW, THEREFORE, IT 19 AGREED by'and between the SBVMWD and CITY <br />as follows: <br />1. PUrQbase of Discha-rSe Right Allocation. Subject to the <br />provisions of paragraph 11 below, CITY agrees to purchase from SBVMWD <br />a discharge right allooation (pip©lino capacity only) for discharge <br />of 2.0 million gallon® per day of industrial Waste water into the <br />SARI system for the amount and upon the terms specified in Exhibit <br />"8" attached hareto and incorporated herein by reference. The <br />parties hereto understand and agree that SDVMWD and SAWPA will be <br />incurring QUbrtantial obligations for con3tructl6n of facilities upon <br />the faith of tho CITY's obligation herein, and that subjeot to the <br />provisions of paragraph 5 below, CITY will be obligated to make the <br />payments specified without regard to whether any discharge is <br />exercised or not. CITY hereby pledges its income from sewer revenues <br />as seourity for such paymente. <br />2. Comlidlice with SAWPA-SBVMWD SARI C-gpacity-greement. CITY <br />understands and agrees that its right to exeroiae its discharge right <br />allooation ana otherwise to participate in the use of the SARI system <br />is contingent on its compliance with the applicable terms and <br />conditione of the SAWPA-SBVMWD SARI Capacity Agreement attached as <br />Exhibit; "A", or as subsequently amended, and any requirements imposed <br />thereby, including the CSDOC Agreements and any rules and regulations <br />imposed by CSL>OC, SAWPA or any other authority with jurisdiction to <br />do no. <br />3. Treatnent And Disposal Right. - Prior to exercise of the <br />discharge right, it will be necessary for SBVMWD to acquire treatment <br />and disposal rights in n0co:rdance With paragraph 3 of Exhibit "A" <br />