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<br />-5- <br />15966623.1 <br />“Operation and Maintenance Costs” does not include “Capital Costs” or “Planning and Special <br />Studies Costs.” <br />Planning and Special Studies Costs <br />The term "Planning and Special Studies Costs" means those costs associated with <br />advanced planning, facilities planning, feasibility studies, research and development, <br />environmental evaluations and studies as related to the overall Facilities or of general interest or <br />benefit to all Agencies. Such costs will include, but not be limited to, reclamation/reuse studies <br />and that portion of Bay water monitoring and research not directly related to pre-discharge or <br />post-discharge monitoring of the Bay Outfall; and allocated general administrative expenses <br />attributable to such activities. The term “Planning and Special Studies Costs” does not include <br />costs associated with fines, studies or other requirements imposed by regulatory agencies, or <br />other liabilities arising out of the Transport System. <br />Policies and Procedures <br />The term "Policies and Procedures" means all those certain rules and regulations adopted <br />by the Commission from time to time for carrying out all the business of the Authority. Nothing <br />in Policies and Procedures may contradict the terms of this Agreement. In the event of any <br />conflict between the terms of this Agreement and the terms of any Policies and Procedures, this <br />Agreement will control. <br />Transport System <br />The term "Transport System" means the pipelines and related structures, excluding any <br />pump stations, used to transport effluent from the Union Effluent Pump Station to the Marina <br />Dechlorination Facility, as shown in Schedule G. <br />Treasurer <br />The term "Treasurer" means that individual designated by the Commission to have <br />custody of, and control disbursements of, all funds of the Authority. <br />Section 2. Authority and Purpose <br />This Agreement is made under the authority of and pursuant to the Joint Exercise of <br />Powers Act, Chapter 5 of Division 7 of Title 1 of the California Government Code (commencing <br />with Section 6500 et seq.) (the “Act”), relative to the joint exercise of powers common to all Agencies