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TOLLING AGREEMENT <br /> <br /> This Tolling Agreement is entered into as of this 27th day of February, 1998, by the <br />City ofPleasanton, a municipal c~rporation ("Pleasanton"), the City ofLivermore, a <br />munidpal corporation ("Livermore"), the Alameda County. Flood Control and Water <br />Conservation District Zone 7, a political subdivision of the State of California ("Zone 7"), <br />the Dublin San 1Lemon Services District, a public agency of the State of Cal/fomia <br />("DSRSD'), Windemere P, anch Partners, a California limited partnership ("Windemere"), <br />and Shapell Industries, Inc., a Delaware corporation ("$hapell"). <br /> <br />RECITALS <br /> <br />A. On January 21, 1998, Zone 7 c~rtified the adequacy of a final supplemental <br />environmental impact report ('~S~IR") addressing the potential environmental impacts of <br />an arrangement by which, among other things, Zone 7 would acquire 7,000 acre-tea of <br />State Water Project water entitlements and wholesale an equivalent amount o£treated <br />water to DSRSD for use in the Dougherty Valley(the "Dougherty Water Transfer'). <br /> <br />B. On January 28, 1998,.Zone 7 made certain findings and authorized the execution of <br />ee~ain agreements with DSRSD and other agencies pursuant to which, among other <br />things, DSRSD's "set"Ace area" (as described in the.existing water supply agreement <br />between Zone 7 and DSI~SD) would be expanded to include the Dougherty Valley and <br />Zone 7 would supply treated water to DSRSD for use in the Dougherty Valley. <br /> <br />C. Pleasanton and Livermore have expressed a des/re for greater regional cooperation on <br />matters related to water service in the Tfi-Vailey a~ea and to initiate discussions with <br />Zone 7 and DSRSD for the purpose of developing policies to' guide the provision of water <br />services by Zone 7 to its existing and future customers. Pleasanton and Livermore desire <br />that these policies address issues of water supply, reliability and delivery affecting the Tri- <br />Valley, including 'the circumstances under which Zone 7 or DSRSD might or might not <br />provide water service to areas outside of Zone 7 boundaries (other than the Dougherty <br />Valley). Pleasanton and Livermore have further expressed a desire to refrain from filing <br />any legal action against the Dougherty Water Transfer for a certain time period, during <br />which period the public agency parties to this agreement (the "Public Agency Pat~ies') <br />would endeavor to initiate and pursue such discussions. <br /> <br />D. Pleasanton previously entered into a tolling agreement with Zone 7, DSRSD, Berrenda <br />Mesa Water D/strict ("BMWD"), Windemere and ShaPell ~hich, aa amended, requ/res <br />that any lawsuit against the Dougherty Water Transfer be filed by certain dates and be <br />limited to certain claims and issues (the "Pleasanton Agreement'.'). The parties to the <br />Pleasanton Agreement disagree as to whether Pleasanton has or has not, by vLrtue of the <br />Pleasanton Agreement and the passage of time, waived its right to initiate any legal action <br />against the parties to that agreement (other than BMWD). <br /> <br /> I <br />wc-20075 v.2 <br /> <br /> <br />