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responsibility of DISTRICT. All future construction, <br /> including additions and alterations to all existing <br /> properties and increased flows emanating from the subject <br /> area shall be the responsibility of City." <br /> <br /> The "Subject Area" consists generally of the area between <br />1-580, 1-680, Hopyard Road and the Arroyo Mocho. <br /> <br /> b. City and District agree that District's sewer <br />service responsibility within the Subject Area as specified in <br />Section 3C of the February 14, 1985 Agreement as of February 14, <br />1985 was equal to 0.518 MGD. <br /> <br /> c. In order to provide for accurate accounting for <br />sewer usage by each agency, City agrees to assume full <br />responsibility for all sewer service within the Subject Area <br />(including the 0.518 MGD assigned to District by Section 3C of <br />the February 14, 1985 Agreement) and District agrees to transfer <br />0,518 MGD of its presently assigned capacity to City in exchange. <br />This 0.518 MGD transfer shall apply to both capacity within the <br />District treatment plant and capacity within the LAVWMA system. <br />Section 7 of the May 30, 1978 Agreement between the City and <br />District is hereby amended to reflect this transfer. <br /> <br /> 3. Current Status of Capacity. Based upon the foregoing, <br />the parties agree that Exhibit "A" is an accurate statement of <br />the status of capacity in the District Plant after approved <br />expansion projects are constructed. <br /> <br /> - 3 - <br /> <br /> <br />