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C. The ACSA and the City also have reached an agreement concerning the <br />0 allocation of existing water plant capacity and sharing of costs thereof for the <br />existing Observatory Water Treatment Plant, South Rivanna Water Treatment <br />Plant, and North Rivanna Water Treatment Plant (the "Urban Water System <br />Plants"), including the 1999 expansion of the South Rivanna Water Treatment <br />Plant, and future improvements of these water plants. <br />D. These agreements are based on the terms of a Comprehensive Review of <br />Costs Allocation Methodology Re: Water System Facilities — Final Report August <br />18, 2003 — Vincent J. Bryne, Utility Consultant, a copy of which is attached hereto <br />as Exhibit A. <br />NOW THEREFORE, for and in consideration of the premises and other <br />• good and valuable consideration, the receipt of all of which is hereby <br />acknowledged, the City, ACSA and RWSA agree as follows: <br />Urban Water System Plants' Capacity Allocation. <br />1. Prior to 1999, RWSA's Urban Water System Plants had a capacity of <br />17.7 million gallons per day ("mgd") of potable water. In 1999, RWSA, at the <br />request of the City and the ACSA, increased capacity at the South Rivanna Water <br />Treatment Plant by 4.0 mgd, increasing total plant capacity in the Urban Water <br />System Plants to 21.7 mgd. <br />2. At that time, RWSA used the then existing cost sharing provisions of the <br />Four Party Agreement to collect the cost of the 4.0 mgd expansion from the City <br />• and the ACSA. Based on current projections, the City can meet its maximum day <br />3 <br />