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ATTACHMENT 1 AGREEMENT FOR THE ALLOCATION OF STATE AND FEDERAL FUNDING BY AND AMONG THE DSRSD-EBMUD RECYCLED WATER AUTHORITY; THE DUBLIN SAN RAMON SERVICES DISTRICT; THE EAST BAY MUNICIPAL UTILITY DISTRICT; AND THE CITY OF PLEASANTON Amendment No. 1 to the Agreement for the Sale of Recycled Water by the DSRSD-EBMUD Recycled Water Authority to the Dublin San Ramon Services District and the East Bay Municipal Utility District, (hereinafter referred to as the "Water Sales Agreement"), which Amendment is dated March 6, 2017, by and among the Dublin San Ramon Services District, a community services district (hereinafter referred to as "DSRSD"), the East Bay Municipal Utility District, a municipal utility district (hereinafter referred to as "EBMUD"), and the DSRSD-EBMUD Recycled Water Authority, a joint powers authority (hereinafter referred to as "DERWA") comprised of DSRSD and EBMUD, provides for the parties to "communicate, cooperate, and coordinate" the acquisition of grant funding and that any grant funds received for certain specified purposes shall be allocated amongst the parties by mutual agreement. The City of Pleasanton (hereinafter referred to as "Pleasanton") receives recycled water from DERWA pursuant to its January 7, 2014 agreement with DERWA, the Agreement to Provide Recycled Water Treatment and Delivery Services, which among other things provides for Pleasanton's financial participation in expanding DERWA treatment capacity. DERWA, DSRSD, EBMUD, and Pleasanton (the "Parties") now wish to enter into this Agreement for the Allocation of State and Federal Grant Funding (the "Allocation Agreement") and do mutually promise and agree as follows: RECITALS: WHEREAS, DERWA has planned, designed and is currently constructing the Recycled Water Treatment Plant Expansion Project (the "Project"); and WHEREAS, it is the Parties mutual desire and intent pursuant to Section J.4, of Article V of the Water Sales Agreement, as previously amended, and as consistent with Pleasanton's commitments pursuant to its agreement with DERWA, to provide for the preparation and submittal of certain state and federal grant and loan fund applications for the Project that are specified in this Allocation Agreement, and to provide for the allocation and administration of any grant funds received as a result of submitting such applications; and WHEREAS, the funding sources subject to this Allocation Agreement are United States Bureau of Reclamation (USBR) Title XVI program established under Title XVI of Public Law 102-575, as amended (Title XVI) and water recycling projects under Water Infrastructure Improvements for the Nation (WIIN) Act of 2016 (the "federal funding"), and the State Water Resources Control Board Clean Water State Revolving Fund and Green Project Reserve (the "state funding"); and Page 1 of 5