DUBLIN SAN RAMON SERVICES PHASE OUT

a. Capacity allocations from 0 -5 MGD have been determined by previous agreement and are not a subject of this Agreement. All flows are based upon Average Dry Weather Flow. b. This represents an increase of approximately one million gallons in treatment capacity at the District's Plant which may occur due to lower discharge standards due to partici- pation in the LAVWMA pipeline project. As this additional capacity develops, it shall be offered for purchase at the percentages indicated in Section 7, Additional Capacity. c. The above percentages recognize the existing distribution of capacity based upon the 1967 Agreement between the parties, the 1972 Settlement Agreement, the District's Utility Agree- ment with the U.S. Army, and the existence of Assessment District 1960 -1. For the purposes of the above allocation, all real property pre- sently within the City that was originally assessed as part of V.C.S.D. 1960 -1 Assessment District shall be considered as being within District for allocation of sewage capacity and has been included in the alloca- tion amount and percentage indicated as belonging to District. Except for the above, all real property located immediately south of Highway I -580 shall be deemed to be in City and included within the amount and percentage of the allocation set forth herein. SECTION 8. EXPANSION OF PLANT CAPACITY. District is scheduled to receive State and Federal grants for the expansion of its plant for the phase -out of City's Plant set forth in Section 7 of this contract. Said grants, which account for 87 -1/2 of the cost of such expansion of District's Plant, according to existing State and Federal grant criteria are available only on a one -time basis and all future expansion of capacity at District's Plant may have to be funded totally by District and /or City. District's Plant was designed initially to expand from time -to -time in appropriate increments to serve the future needs of the area served by it. In -10-