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("AFY") of Recycled Water, subject to availability of supply, for distribution within the DERWA service area; and WHEREAS, DSRSD, pursuant to the Agreement for Sale of Recycled Water dated July 28, 2003, constructed and now owns the Recycled Water Treatment Plant that was jointly funded by DSRSD and the East Bay Municipal Utility District ("EBMUD"), and which is currently rated by the California Department of Public Health for a maximum daily capacity of 9.7 million gallons per day ("MGD") of Recycled Water, of which it currently produces about 6 MGD maximum daily flow; and WHEREAS, the Parties wish to enter into an agreement by which DERWA shall cause DSRSD to produce Recycled Water for delivery to Pleasanton for distribution by Pleasanton in its service area ("City Recycled Water Program"); and WHEREAS, this agreement helps to define a stable and finite project or program description that will facilitate completion of California Environmental Quality Act ("CEQA") review pursuant to Cal. Pub. Res. Code section 21000 et seq., and is conditioned upon the Parties' completion of CEQA review. NOW, THEREFORE, in consideration of these Recitals and the terms, conditions and covenants contained herein, it is mutually understood and agreed as follows: SECTION 1: DEFINITIONS Unless the context otherwise requires, the following terms used in this Agreement shall have the meanings respectively ascribed thereto: 1.1 "Agreement" shall mean this Agreement to Provide Recycled Water Treatment and Delivery Services by and between DERWA and Pleasanton. 1.2 "Parties" shall mean Pleasanton and DERWA. 1.3 "Basic Agreement" shall mean the "Agreement for Wastewater Services" dated November 3, 1992 between Pleasanton and DSRSD, and supplements thereto. 1.4 "Point of Delivery" shall mean the location(s) of the billing meter and the point(s) at which responsibility and ownership for the Recycled Water transfers from DERWA to Pleasanton. 1.5 "Fifth Supplemental Agreement" shall mean the "Fifth Supplemental Agreement for Wastewater Services" between Pleasanton and DSRSD. 1.6 "Recycled Water" shall mean water treated to a quality that meets or exceeds the standards established by the California Department of Public Health according to Title 22 of the California Code of Regulations or successor regulations for non-potable water intended for unrestricted use. This is the same Recycled Water that is produced by DSRSD and supplied to DERWA pursuant to the July 28, 2003 Water 2