Agmt 2003 Oro Loma Sanitary District

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7. TYPE OF SEWAGE AND WASTE. DISTRICT shall not be obligated to treat sewage emanating from SUBJECT AREA which does not conform to the DISTRICT Ordinance and NPDES permit prescribing the type of sewage wastes which are permitted. 8. ORDINANCES AND REGULATIONS. Both CITY and DISTRICT shall adopt such ordinances, orders or regulations as are necessary to effectively enforce Section VII and any other provisions hereof. Any such ordinance, order or regulation shall contain a provision that no storm water, roof drainage, or other water or effluent other than domestic sewage and industrial waste shall be permitted to be discharged into any sanitary sewer. Each of the parties hereto shall use its best efforts to cause such ordinances, orders or regulations to be enforced within its respective area. 9. CAPITAL IMPROVEMENT. The parties agree that payments to the DISTRICT by the CITY include all costs of operations and maintenance (O&M) and all CAPITAL COSTS for improvements, enlargements, or extensions to the DISTRICT's sewerage system, lift station(s), and treatment plant used all or in part to serve the subject area. However, should it become necessary for DISTRICT to change to a higher degree of sewage treatment than presently contemplated by the parties due to a change in law or regulations by regulatory authorities, and if such change causes the DISTRICT to levy a bond issue or special assessment on all ratepayers within the DISTRICT over and above prevailing sewer user charges, then the CITY agrees that the annual amount of such levy or bond issue shall be added to the DISTRICT'S rate structure then in effect, and the total shall be considered the District's prevailing sewer charges for calculating the charges in Section III of this Agreement. An order in due form by such regulatory authority shall be considered conclusive by the parties hereto as to the necessity of an expenditure of funds for such higher degree of treatment. An example of a change under this section would be if the SFRWQCB required the District to increase its level of treatment from "secondary" to "tertiary". 10. BREACH AND REMEDY. If either parry shall violate any of the provisions hereof, the other party may serve a written demand that said breach be remedied. If said breach is of a kind Agreement For Transportation, Treatment And Disposal Of Sewage between Page 4 of 6 City of San Leandro and Oro Loma Sanitary District