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summary of the District's actual use (on a daily basis) of City's Secondary <br /> Effluent during the previous calendar year, a projection of City's <br /> Secondary Effluent to be used in the current year and any payment due <br /> for the use of City's Secondary Effluent. <br /> 7. Recycled Water Facilities. <br /> (a) General. Recycled Water Facilities may or may not be part of the Regional <br /> Sewerage Facilities as the parties so determine in accordance with the Basic Agreement. If a <br /> Recycled Water Facility is not a Regional Sewerage Facility, the Capacity Rights of the parties <br /> in such Recycled Water Facility shall be in proportion to the Recycled Water Treatment <br /> Capacity funded by each party. <br /> (b) Capacity Acquisition. District may construct Recycled Water Facilities for <br /> District's use provided District pays the cost thereof. Upon written authorization by City, <br /> District shall construct Recycled Water Facilities for City if City provides funds for the cost <br /> thereof. District shall master plan for Recycled Water Facilities in such a way that City may <br /> acquire adequate capacity to utilize all City's Secondary Effluent, except as provided in <br /> Section 6 of this Agreement, to produce Recycled Water for landscape irrigation at a <br /> reasonable unit cost of construction similar to that paid for by District. <br /> (c) Facility Operation. District shall operate and maintain Recycled Water <br /> Facilities once constructed. The parties shall pay the actual cost of operating and maintaning <br /> the Recycled Water Facilities in proportion to the amount of Recycled Water each party <br /> receives. <br /> 8. Regional Connection Fee. District may allocate or expend net revenues from the <br /> Regional Connection Fee to master plan for Recycled Water Facilities at the Regional <br /> Sewerage Facilities. District shall not allocate or expend any amount of the net revenues from <br /> the Regional Connection Fee to design or construct Recycled Water Facilities except as <br /> provided for under the Basic Agreement and all supplemental agreements thereto. <br /> Page 6 of 8 <br /> H: \Board \DrafMGREE \3rd Sup with Pton.doc <br />