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$50,000 and have not been mandated by regulatory agencies having con- <br /> trol thereof, including but not limited to the State Water Resources <br /> Control Board and the Regional Board, then the planning, design and <br /> construction and method of financing said modifications, improvements, <br /> additions and replacements shall be mutually agreed upon prior to <br /> either City or District incurring any commitment or obligation to <br /> purchase materials or services associated with such modifications, <br /> improvements, additions and replacements. <br /> b. When said modifications, improvements, additions and replace- <br /> ments individually have an estimated construction cost in excess of <br /> $50,000 and have been mandated by regulatory agencies having control <br /> thereof then District may proceed with said modifications, improvements, <br /> additions and replacements without prior agreement of City and the <br /> cost of said modifications, improvements, additions and replacements <br /> may be funded from the basic connection fee or any accumulations <br /> thereof or other sources without prior agreement of City. Where the <br /> mandating regulatory agency has not determined that said modifications, <br /> improvements, additions and replacements are required because of <br /> quality or quantity of discharge attributable to the parties in dif- <br /> ferent proportions, in the absence of agreement the costs thereof shall <br /> be allocated in proportion to plant flows at the time or, where sig- <br /> nificant amounts of unused capacity are available, in proportion to <br /> allocation of plant capacity. <br /> c. When said modifications, improvements, additions and replace- <br /> ments individually have an estimated construction cost of less than <br /> $50,000, whether mandated or not, then District may proceed with said <br /> modifications, improvements, additions and replacements without prior <br /> -19- <br />