DUBLIN SAN RAMON SERVICES PHASE OUT

AGREEMENT THIS AGREEMENT, made and entered into this 7 day of September 1978, by and between the CITY OF PLEASANTON, a municipal corporation (hereinafter referred to as CITY), and DUBLIN SAN RAMON SERVICES DISTRICT (hereinafter referred to as DISTRICT), amends the May 30, 1978 agreement between the CITY and DISTRICT. RECITALS This agreement is predicated upon the following facts: WHEREAS, CITY and DISTRICT entered into an agreement on May 30, 1978 (hereinafter called Agreement) in order to provide for phaseout of CITY's Sunol sewer treatment plant and to increase the DISTRICT's sewer treatment plant capacity to provide for con- solidation with the CITY; and WHEREAS, existing litigation between the DISTRICT and Volk McLain Properties, Inc., and Volk- McLain Communities, Inc. (Collec- tively hereinafter referred to as Volk- McLain), entitled "Valley Community Services District v. Volk- McLain Communities, Inc., et al, and Volk- McLain Properties, cross- complainant v. Valley Community Services District, cross defendant," No. 441299 in the Superior Court of the State of California in and for the County of Alameda, presently on appeal, makes the implementation of the Agreement impractical due to the resulting uncertainty of future costs to the CITY for future connections; and WHEREAS, paragraph 14 (3)(d) of the Agreement allows that either party may void the agreement if there is not a satisfactory settlement between the DISTRICT and Volk- McLain; and WHEREAS, the DISTRICT and Volk- McLain, with the CITY partici- 9,