DUBLIN SAN RAMON SERVICES PHASE OUT

WHEREAS, City and District, on June 14, 1967, entered into a contract relating to use of District's Plant by City for the purpose of eliminating the City's Plant at the earliest feasible time; and WHEREAS, the phase -out of City's Plant was to be accomplished in a three phase program with the understanding that City would not. expand City's Plant; and WHEREAS, pursuant to said agreement and conditions therein, District agreed to provide sewage treatment and disposal services to City; and WHEREAS, pursuant to said agreement District implemented the first phase of consolidation of facilities by directly serving, as construction occurred, approximately one -half of City and received the connection fees and monthly sewer service fees associated with that portion of the City; and WHEREAS, in October of 1971, a cease and desist order and con- nections ban was imposed upon the District's plant due to the discovery of approximately one million gallons of wastewater which previously had not been recorded on District's plant meters; and WHEREAS, in order to protect its rights in District's facility, as provided in the 1967 agreement, City brought suit against District, Alameda County Superior Court Case No. 423134, enjoining further con- nections to District's plant and seeking declaratory relief of the 1967 Agreement; and WHEREAS, a number of City's and District's users intervened in City's suit and commenced suits against City and District on various grounds relating to the use of sewer capacity; and -2-