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19- <br />15966623.1 <br />managers, or designee, from each of the Agencies, will make the preliminary determination of <br />the need for any modifications. In the event an Agency(ies) disagrees with the General <br />Manager's determination, the Authority will engage a professional engineer to evaluate the need <br />for engineering and modifications. If the Agency(ies) seeking Maximum Flow Rate Capacity <br />increase disagrees with the General Manager's determination, the cost of engaging a professional <br />engineer will be borne solely by that Agency(ies). If a non-increasing Agency(ies) disagrees <br />with the General Manager's determination, the cost of engaging a professional engineer will be <br />divided equally between the Agency(ies) seeking the increase and the non-increasing <br />Agency(ies) that disagrees with the General Manager's determination. Further disputes related to <br />the need for modifications will be resolved pursuant to the dispute resolution procedures set forth <br />in Section 19. <br />e) No Reductions in Maximum Flow Rate Capacity During the Term. <br />No Agency may reduce its Maximum Flow Rate Capacity during the Term. Once an <br />Agency has taken action set forth in subsection 11(d) to increase its Maximum Flow Rate <br />Capacity, it may not thereafter reduce its revised Maximum Flow Rate Capacity during the <br />Term. <br />Section 12. Allocation of Operation and Maintenance Costs, Capital Costs, and Planning and <br />Special Studies Costs. <br />a) Allocation of Operation and Maintenance Costs. <br />Operation and Maintenance Costs will be allocated to each Agency as set forth in <br />Schedule B. <br />Meters will be used to measure the discharge of effluent from the treatment facilities of <br />Union, Hayward, the combined facilities of Oro Loma and Castro Valley, and San Leandro for <br />the purposes of determining flow under Schedule B and for other purposes, including but not <br />limited to, regulatory reporting. <br />b) Allocation of Capital Costs. <br />1) Capital Costs related to the pump stations which exceed a total cost of <br />10,000 per project, plus allocated general administrative expenses attributable to such Capital