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<br />described in the Preliminary Water and Wastewater Service <br />Master Plans for the Cottonwood Creek Area produced by Jones <br />and Neuse, Inc., consulting engineers to the City, dated <br />January, 1987 (the "Utility Plan"), portions of which are <br />attached in Exhibit "D" hereto. The District shall finance <br />its pro rata share of the Regional Facili ties as more <br />specifically provided therein and hereinafter, as well as <br />plan, design, finance and construct those portions of the <br />utility systems internal to the District. Thereafter, the <br />District shall receive an absolute, non-discriminatory <br />exc lusi ve ownership right to the capacity in the City's <br />systems needed to serve the property within the District, <br />and the City shall own, operate, and maintain the Regional <br />Facili ties as well as the District's internal uti Ii ty <br />facilities. It is understood that this arrangement results <br />in a partnership of the City and the District and permits <br />the provision of utilities services to the District through <br />portions of the Ci ty' s regional systems, integrating the <br />District into the City's regional systems and eliminating <br />the need for temporary facilities to be constructed by the <br />District. It is agreed that the Regional Facilities may be <br />utilized by the City to serve areas outside the District so <br />long as no disruption or curtailment of service to the <br />District or impairment to the District's exclusive ownership <br />rights to its purchased capacity therein occurs as a result <br />thereof. The City shall not permit the District's pro rata <br />share of purchased capacity in the City's systems to be <br />commi tted and permanently allocated to any other party. <br />Finally, it is understood and agreed that the District will <br />not finance more than its pro rata share of the City's <br />Regional Facilities and its internal utilities, and that the <br />District agrees to cooperate in all current and future <br />phases of the Utility Plan of which service to the District <br />is a part, as presently projected or as mutually modified. <br /> <br />Section 3.02. Cost-Sharing and Mutual Modification of <br />Regional Facilities. <br /> <br />(a) The District and the City agree to share the costs <br />of the Regional Facilities, the cost shares being as de- <br />scribed in the so-called Second Alternative and Appendix H <br />of the Water part and Alternative 6 and in Appendix J of the <br />Wastewater part of the Uti li ty P lan, attached hereto as <br />Exhibi t "D". Execution of this Agreement by the City <br />constitutes its adoption of said alternatives as the Utility <br />Plan. The parties have agreed that, in general, the Utility <br />Plan will meet the needs of both the City and the District. <br /> <br />-5- <br />