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WHEREAS, an agreement was entered into between City, District <br /> and Users on November 8, 1972, and incorporated into a stipulated <br /> judgment settling the above litigation; and <br /> WHEREAS, the above judgment and Agreement contemplated the ex- <br /> pansion of District's Plant and the phase -out of City's Plant into <br /> District's expanded Plant; and <br /> WHEREAS, by the terms of the above judgment and Agreement, City <br /> and District were obligated to negotiate a revision to the existing <br /> June 14, 1967, Agreement to provide for the division of the anticipated <br /> plant capacity at District's Plant in excess of five (5) million gallons <br /> per day to accommodate the eventual phase -out of City's Plant into <br /> District's Plant; and <br /> WHEREAS, both City and District made application to the State <br /> for funding of the expansion of District's Plant and construction <br /> of an interceptor sewer line to phase City's Plant into District's <br /> Plant and caused necessary construction drawings to accomplish the <br /> above tasks to be prepared which were submitted to the State prior to <br /> September, 1977; and <br /> WHEREAS, the State has indicated to City and District, by a <br /> tender of grants, subject to conditions, a willingness to participate <br /> in the financing of the consolidation projects of the parties; and <br /> WHEREAS, the State has indicated a willingness to approve an <br /> expansion of District's Plant to provide City with 2.34 MGD for the <br /> City's Plant phase -out; and <br /> WHEREAS, as a condition of present funding pursuant to the Clean <br /> Water Grant Program, the City and District must negotiate an agreement <br /> regarding the apportionment of capacity, costs, enlargement and other <br /> -3- <br />