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<br /> Page 2 <br /> may design and utilize wastewater services to the proposed <br /> buildings determined on a living unit equivalent (" LUE") <br /> basis established by the City and further described In a letter <br /> dated September 14, 1984 from A.C. Gonzalez, City I1anager of <br /> the City, a copy of which letter is attached hereto as Exhibit <br /> A; <br /> NOh!, THEREFORE / for and in consideration of the premises <br /> and the mutual covenants herein contained, and subject to the <br /> conditions herein set forth, the parties hereto covenant, agree <br /> and bind themselves as follows: <br /> Section 1. Sale and Purchase of LUE s . (a) The City <br /> hereby sells to the School District and the School District <br /> hereby purchases from the City, for the price set forth in Section <br /> 1 (b), a reservation from package plant wastewater treatment <br /> facilities of 40 LUEs to be utilized by the School District In <br /> the expansion and in the development of additional school <br /> buildings. <br /> (b) The School District hereby delivers to the City and <br /> the City hereby accepts from the School District $20,000.00 <br /> in payment for the reservation of LUEs pursuant to Section 1 (a) . <br /> Section 2. entations and Warranties of the Ci <br /> The City represents and warrants as follows: <br /> (a) the City has duly authorized the execution of this <br /> Agreement by appropriate action of tbe city Council; and <br /> (b) the City has the requisite power and authority to <br /> enter into the sale of reservations as described In Section 1 <br />