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SECTION 4: INITIAL RECYCLED WATER SERVICE 4.1 Upon Pleasanton connecting a Recycled Water customer other than Val Vista Park, Recycled Water delivery from DERWA to Pleasanton shall be through a Primary Point of Delivery located on the main recycled water line from the Recycled Water Treatment Plant, which point shall be selected by DERWA in consultation with Pleasanton and, if on DSRSD property with DSRSD's concurrence. Pleasanton shall install the Primary Point of Delivery in accordance with standards as determined by DERWA, including metering facilities. Pleasanton shall be responsible for the permitting, installation, operation, and maintenance of all distribution piping and related equipment and facilities downstream of the Primary Point of Delivery. DERWA shall be responsible for operation, maintenance, and replacement of the billing meter. Pleasanton shall pay the cost of installation, maintenance, and replacement of a billing meter at the Primary Point of Delivery. The Parties understand that said meter will be owned by DERWA. In addition, Pleasanton agrees to be responsible for servicing all customer connections to its Recycled Water distribution system and any other costs whatsoever associated with their deliveries of Recycled Water to their customers, except to the extent specified to the contrary in the indemnity provisions in Section 8.3, below. 4.2 DERWA is obligated to provide to Pleasanton initial Recycled Water service as follows: 4.2.1 Up to 500 AFY of Recycled Water, if needed by Pleasanton, until the earlier of December 31, 2020 or five (5) years from the date of first delivery of Recycled Water under this Section 4 (hereafter, "first delivery"). This quantity of Recycled Water shall include the 40 AFY at a 0.10 MGD maximum day delivery rate and a 0.20 MGD peak hourly delivery rate, as provided for Pleasanton's use at Val Vista Park pursuant to Section 3 of this Agreement. 4.2.2 Prior to the earlier of December 31, 2020 or five (5) years from the date of first delivery, Pleasanton may take more than the 500 AFY of Recycled Water referred to in Section 4.2.1 if DERWA determines that such additional Recycled Water is available. 4.2.3 After December 31, 2020 or five (5) years from the date of first delivery, whichever occurs first, DERWA shall be obligated to provide to Pleasanton only that quantity of Recycled Water that is available as determined by DERWA; DERWA shall not be obligated to provide the full 500 AFY to Pleasanton. 4.3 All deliveries to Pleasanton under this Section shall be made at the Points of Delivery defined above in Sections 3.2 and 4.1 of this Agreement. In addition, DERWA shall deliver to Pleasanton the actual Pleasanton Recycled Water needs, provided that the ratio of the maximum daily rate to actual annual average deliveries in any year shall not exceed a factor of 2.5 and further provided that the capacity of the Recycled Water Treatment Facilities being used to produce Recycled Water for Pleasanton, DSRSD and EBMUD is not exceeded by such deliveries to Pleasanton. 6