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either party. No work or service shall be interrupted or de- <br /> layed due to any arbitration proceedings except by written <br /> agreement of both parties. <br /> SECTION 17. LIABILITIES AND LIMITATIONS OF PARTIES <br /> RELATING TO REGULATORY AGENCY ACTIONS. <br /> District agrees to maintain and operate District's sewage treat- <br /> ment plant in a competent and diligent manner to the end that require- <br /> ments set by the RWQCB and any other agency having jurisdiction there- <br /> of be met. District, as sole owner and operator of District's Plant, <br /> assumes all liability and responsibility for any claims, settlements <br /> and penalty arising from any legal process alleging failure of District <br /> to operate it's plant in a competent manner. City is responsible and <br /> liable only for any claims, settlements and penalty arising from legal <br /> actions pertaining only to its function as a sewage collection agency. <br /> SECTION 18. INSURANCE. <br /> District shall at all times maintain insurance against loss or <br /> damage to the District's Plant as is customarily maintained with re- <br /> spect to works and property of like character. The District shall <br /> also maintain with responsible insurers worker's compensation insur- <br /> ance and insurance against public liability and property damage. The <br /> premiums on all such insurance shall be part of operating and main- <br /> tenance expenses. However, nothing contained in this section shall <br /> prohibit District from entering into a self insurance or co- insurance <br /> program. <br /> SECTION 19. POLICE POWER. <br /> Nothing in this Agreement shall be deemed to limit the rights <br /> of the parties to exercise their respective police power to protect <br /> the public health, safety and welfare. In addition, each party shall <br /> -26- <br />