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<br />B. New Development: If DISTRICT determines that new development or changes <br />of use within, or tributary to, the SUBJECT AREA will increase sewage flaw to a degree which <br />exceeds the capacity of any part of the DISTRICT'S existing sewerage system, DISTRICT shall <br />have the right to refuse said excess or renegotiate this Agreement. <br />C. Connection Fees: Connection fees for new connections within the SUBJECT <br />AREA shall be collected and paid directly to the DISTRICT in amounts and under terms <br />specified in the DISTRICT'S sewer ordinances then in effect. <br />D. Refund of Connection Fees: For purposes of this section, it is assumed that each <br />connection fee collected is invested in the District's plant and has a useful life amortized equally <br />over 20 calendar years. For example, a connection fee of $4,000 has a value of $2,000 after 10 <br />years. Based upon these assumptions, if this agreement is terminated, the District shall refund to <br />the City the unamortized years of each connection fee based on the percentages listed below: <br />(1} If Oro Loma terminates the agreement - 100% <br />(2) If termination is by mutual agreement - 50% <br />(3) If the City terminates the agreement - 0% <br />Example: Using the $4,000 connection fee as an example, if this agreement were terminated by <br />mutual agreement after 10 years, the District would refund $1,000 to the City. <br />5. MAINTENANCE OF CITY SEWERAGE SYSTEM. CITY shall, at its own cost <br />and at no cost to DISTRICT, maintain and operate its sewerage collection system in SUBJECT AREA <br />in a professional manner and consistent with CITY policies and programs for its other sewerage systems <br />within the CITY. <br />6. CONTINUITY OF SERVICE. DISTRICT shall use reasonable diligence to provide <br />regular and uninterrupted service to SUBJECT AREA, but shall not be liable to CITY for damages, for <br />breach of contract, or otherwise for failure, suspension, diminution or other variation of service <br />occasioned by or as a consequence of its obligations hereunder. <br />Agreement For Transportation, Treatment And Disposal Of Sewage between Page 3 of 6 <br />City of San Leandro and Oro Loma Sanitary District <br />