DUBLIN SAN RAMON SERVICES DISTRICT FINANCING IMPLEMENTATION - AMENDMENTS

4. Section 7 (f)of said Agreement is hereby amended to read as follows: (f) Surplus. If the Audited Fund Balance is in excess of the Administrative Target Level ("Surplus Funds"), City and District staff shall make a recommendation at the fall meeting of the Committee, in conjunction with a long term cash flow computer model, regarding disposition of the surplus funds,which may include but not be limited to using the surplus funds for maintaining extra reserves or for the retirement of Debt Service.The Committee will make a recommendation as to the disposition of the surplus funds and the City and District shall then jointly ratify the Committee's recommendation on the disposition of the surplus funds. If the Committee makes no recommendation as to the disposition of the surplus funds, or if the City and District do not both ratify the recommended disposition of the surplus funds,then the funds will remain in the Rate Stabilization Fund until a mutually agreeable disposition can be determined jointly by the City and the District. 5. In all other respects,the Agreement,as amended by the First Amendment(dated as of June 28, 2004)thereto, shall remain in full force and effect. IN WITNESS WHEREOF,the duly authorized representatives of the parties hereto have executed this Second Amendment to the Agreement as of the date and year first hereinabove written: CITY OF PLEASAeON DUBLIN SAN RAMON SERVICES DISTRICT BY: BYy� �` �✓� '� Nelson Fialho, City Manager Bert Michalczyk,General Manag " Approved as to form: Approved as to form: an Lowell, City Attorney Carl P.A. Nelson Assistant District Counsel Attest: Attest: y: 1 BY: m_C�- Ty Kare Diaz, City Cler Nancy G. Hatfield, District Ocretary 4