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reasonably needed for the completion of the CEQA review. Except for the DERWA <br /> effort described in the preceding sentence, Pleasanton shall pay all costs of the CEQA <br /> review when it is acting as lead agency for the City's development of its Recycled Water <br /> Program. When DERWA is acting as lead agency, the costs of the CEQA review shall <br /> be shared by the Parties in relation to the relative capacity increase each Party is <br /> proposing for itself under Section 5.3. <br /> 9.3 If completion of CEQA review identifies any significant adverse <br /> environmental effects from the City's Recycled Water Program, the Parties retain full <br /> discretion to disapprove this Agreement or to revise this Agreement as necessary to <br /> implement any feasible mitigation measures or alternatives that would avoid or reduce <br /> such significant effects as provided by CEQA; provided that DERWA's discretion to <br /> disapprove or revise this Agreement shall be limited to responding to any significant <br /> adverse environmental effects that lie within DERWA's legal jurisdiction as a <br /> responsible agency under CEQA. DERWA will reasonably cooperate with Pleasanton <br /> regarding the implementation of any feasible mitigation measures, mitigation monitoring <br /> or alternatives adopted in the final CEQA review, but under no circumstances shall <br /> DERWA be responsible for the costs of implementing any mitigation measures, <br /> mitigation monitoring or alternatives that are adopted to avoid or reduce significant <br /> effects of the City's Recycled Water Program. Pleasanton shall pay the costs of <br /> implementing all mitigation measures, mitigation monitoring or alternatives that are <br /> adopted to avoid or reduce significant effects caused by the City Recycled Water <br /> Program. <br /> 9.4 If any third party brings a legal challenge to the CEQA review <br /> conducted under this Section, Pleasanton shall undertake the defense thereof at its sole <br /> expense, and shall indemnify, defend, and hold harmless DERWA, and DERWA's <br /> officers, employees, and agents, from any cost or expense, including attorney's fees, <br /> and costs incurred therein. DERWA and Pleasanton have a common interest in <br /> completing legally defensible CEQA review and in defending the CEQA review <br /> completed under this Section. DERWA shall cooperate with City in defending the <br /> CEQA review completed under this Section. <br /> 14 <br />