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The costs to be borne by the parties, either jointly or individ- <br /> ually, shall be the proportionate cost of any proposed plant expansion <br /> (not of the entire plant capacity), including but not limited to en- <br /> gineering costs, capital expense, and administrative, financial and <br /> legal costs. Where the parties are jointly financing expansion costs <br /> beyond the amount funded by the basic connection fee, the parties <br /> will provide, by agreement, a method of apportioning the amount of <br /> capacity, financing costs, operation and maintenance costs and miscel- <br /> laneous expenses which will be attributable to each party. <br /> Nothing in this section shall prohibit District, as owner and <br /> operator of the consolidated sewage treatment plant, from applying for, <br /> receiving and /or carrying out federal and /or state grant programs for <br /> the expansion of future plant capacity. <br /> The parties recognize that the ability to discharge additional <br /> capacity per this section is subject to the LAVWMA joint powers agree- <br /> ment. The parties will participate in making application to the <br /> Board of Directors of LAVWMA for additional capacity; provided, how- <br /> ever, that nothing set forth herein shall restrict, limit, abrogate <br /> or otherwise negate the City's rights to obtain additional sewage <br /> disposal capacity per Paragraph XI,A(8) of the LAVWMA Joint Exercise <br /> of Powers Agreement as amended May 31, 1977. <br /> SECTION 9. ADMINISTRATION OF PLANT. <br /> District, except as otherwise expressly provided in this Agreement, <br /> shall administer, construct, operate, maintain, manage and control, <br /> the District Plant in an efficient and economical manner and maintain <br /> and preserve it in good repair and working order, all in accordance <br /> with sound engineering practices. District agrees to accept, convey, <br /> -13- <br />