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D. This Agreement is necessary to allocate the proposed 2.5 <br />MGD expansion between District and City. <br /> <br /> E. This Agreement is also necessary to agree on the effect <br />of Section 3 of the February 14, 1985 Agreement which transfers <br />future sewer service responsibilities for the area between 1-580, <br />1-680, Hopyard Road and Arroyo Mocho ("Subject Area") to the <br />City. <br /> <br /> AGREEMENT <br /> <br /> NOW, THEREFORE, the parties hereto agree a follows: <br /> <br /> 1. Allocation of District Expansion. The 2.5 MGD expansion <br />to the District plant capacity shall be allocated between <br />District and City in the same proportions as each agency shared <br />in the LAVW~4A 4.38 MGD expansion. The City shall receive 50.8% <br />of the total or 1.27 MGD of capacity in the District plant. The <br />District shall receive 49.2% of the total or 1.23 MGD of capacity <br />in the District plant. <br /> <br /> 2. Transfer of Sewer Service Responsibility. <br /> <br /> a. Section 3C of the February 14, 1985 Agreement <br />Allocating the 4.38 MGD Expansion of LAVWMA provides as follows: <br /> <br /> " C. DISTRICT reaffirms that all sewer treatment <br /> <br /> capacity necessary to service existing construction within <br /> the Subject Area and any construction for which sewer permits <br /> have already been purchased (to include the Hilton Hotel and <br /> the proposed Clorox expansion) shall remain the <br /> <br /> - 2 - <br /> <br /> <br />