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Page -4 of 15 . <br />A. Assume 'all financial obligations realized by <br />City relating to the expansion of the. DSRSD and LAVWMA <br />.facilities, as provided herein,.includng but not. <br />limited to all costs associated 'with uch environmental <br />.studies, engineering feasibility studies, working engineer- <br />ing...plans and specifcations,_,construction management, <br />and administration. Owner or Proposed Assignee shall pay <br />such costs incurred by City within thirty (30) days of <br />receipt of written notice..from City. Said written .notice <br />shall be accompanied by copies. of invoices for said <br />costs; and <br />B. Fund all direct and indirect construction costs, <br />including those costs provided for. in subparagraph 1(A) <br />hereof, related to the City of Pleasanton's portion of <br />the cost. of the expansion of the DSRSD and LA.VWMA <br />facilities, including the posting of performance bonds <br />guaranteeing completion of the City's portion of said <br />improvements; and <br />C. Subject to the approval of the City and other <br />governmental agencies, construct a discrete sewer plant <br />to be located on Owner`s property, or on property to be <br />acquired by Owner's Proposed Assignee., Said discrete <br />sewer plant shall have a minimumcapacity of 1,500,000 <br />gallons per day and shall utilize a 300,000 gallon per <br />day portion of the DSRSD and LAVti•1~~A expansion capacity <br />provided for herein on a permanent basis, subject to <br />DSP.SD and LAVWMA approval, for the disposal of the sludge <br />-4- <br />