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which coordinated operation shall include the use of storage in Tassajara Reservoir to reasonably minimize peak daily demand for direct delivery of Recycled Water from the Recycled Water Treatment Facility. c. Facility Integration. i. General. The Parties shall integrate the facilities identified herein into the Parties' respective Recycled Water Programs so as to reasonably maximize the use of capacity of said facilities that is currently unused in an equitable manner as specified herein. ii. Microfiltration / Ultraviolet Disinfection Treatment. 1. The District shall make excess capacity in its microfiltration and its associated ultraviolet disinfection ("MF/UV") facilities available to produce Recycled Water for the District Recycled Water Program or the City Recycled Water Program. 2. Commencing with the 2014 irrigation season neither the District nor Pleasanton shall be required to separately make any lease payments towards the costs related to the construction of the MF/UV facilities, in return for use of these facilities. 3. The District and City agree that DSRSD shall cause DERWA to apportion the non-replacement operating costs of the MF/UV facilities among EBMUD, DSRSD and Pleasanton in relation to deliveries to each party of recycled water processed by the MF/UV facilities. 4. Pleasanton shall pay a proportionate share of MF/UV replacement expenditures for items with a cost of less than $100,000 each, based on deliveries to Pleasanton in relation to total Recycled Water deliveries to DSRSD, EBMUD and Pleasanton in that Fiscal Year. 5. Pleasanton shall pay 50% of the non-EBMUD share of MF/UV replacement expenditures for items with a cost of greater than $100,000 each. iii. Tassajara Reservoir Storage. City shall operate Tassajara Reservoir in a manner that reasonably minimizes the peak daily demand of the City Page 7 of 19