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C. The PARTIES recognize the necessity for jointly constructing, <br />operating, using and maintaining tertiary wastewater treatment, disposal and water <br />reclamation systems for the public benefit. <br />NOW, THEREFORE, in consideration of the mutual covenants and the promises <br />of the PARTIES hereto, and the provisions, conditions and terms provided for herein, the <br />PARTIES agree as follows: <br />ARTICLE I <br />CREATION AND PURPOSES <br />1.1 Creation of Public Agency <br />There is hereby created a public agency known as the "COLTON/SAN <br />BERNARDINO REGIONAL TERTIARY TREATMENT AND WATER <br />RECLAMATION AUTHORITY" (hereinafter referred to as the "AUTHORITY"). The <br />AUTHORITY is formed by this AGREEMENT pursuant to the provisions of Article I, <br />Chapter 5, Division 7, Title 1 of the Government Code .of the State of California, Section <br />6500 et sed. It is the intent of the PARTIES that the AUTHORITY shall be a public <br />agency separate from the PARTIES. <br />1.2 Purpose <br />The purpose of this AGREEMENT is to create a public agency to exercise the <br />common powers of COLTON and SAN BERNARDINO to construct, operate, use and <br />maintain tertiary wastewater treatment, disposal and water reclamation systems. <br />BCM:nm:01/27/94:I729 -2- <br />