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b. If completion of CEQA review identifies any significant adverse environmental <br /> effects from the City's Recycled Water Program, the Parties retain full <br /> discretion to disapprove this Agreement or to revise this Agreement as <br /> necessary to implement any feasible mitigation measures or alternatives that <br /> would avoid or reduce such significant effects as provided by CEQA; provided <br /> that District's discretion to disapprove or revise this Agreement shall be limited <br /> to responding to any significant adverse environmental effects that lie within <br /> District's legal jurisdiction as a responsible agency under CEQA. District will <br /> reasonably cooperate with City regarding the implementation of any feasible <br /> mitigation measures, mitigation monitoring or alternatives adopted in the final <br /> CEQA review, but under no circumstances shall District be responsible for the <br /> costs of implementing any mitigation measures, mitigation monitoring or <br /> alternatives that are adopted to avoid or reduce significant effects caused by <br /> the City Recycled Water Program. City shall pay the costs of implementing all <br /> mitigation measures, mitigation monitoring or alternatives that are adopted to <br /> avoid or reduce significant effects caused by the City Recycled Water <br /> Program. <br /> c. If any third party brings a legal challenge to the CEQA review conducted under <br /> this Section, City shall undertake the defense thereof at its sole expense, and <br /> shall indemnify, defend, and hold harmless District, and District's officers, <br /> employees, and agents, from any cost or expense, including attorney's fees, <br /> and costs incurred therein. District and City have a common interest in <br /> completing legally defensible CEQA review and in defending the CEQA review <br /> completed under this Section. District shall cooperate with City in defending <br /> the CEQA review completed under this Section. <br /> Page 13 of 19 <br />