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rights or liabilities accrued prior to such termination, including the equity <br />ownership interests acquired by the Parties in the Plant, Carrizo Facilities, and the <br />Raw Water Delivery System, respectively, as provided herein. <br />3. Section 4, Design, Construction, Operation and Maintenance, and Ownership of the <br />Plant, is hereby amended to read as follows: <br />Section 4. Design, Construction, Operation and Maintenance, and <br />Ownership of the Plant Site Facilities. <br />(1) Plan Design and Construction of Plant Site Facilities. <br />(a) The City shall design, acquire and construct the Plant. The Plant <br />shall be designed and constructed in phases, so that the completed initial <br />phase can be easily expanded from time to time by the Minimum Plant <br />Expansion (3 MGD) or a multiple thereof. The design capacity of the initial <br />phase of the Plant shall be 6 MGD, unless either Parry specifies a greater <br />initial capacity as set forth below, or unless the Parties agree otherwise. The <br />amount of any increase in the initial phase capacity of the Plant shall be 1 <br />MGD or a multiple thereof. If either Party desires a greater initial phase <br />capacity, it shall give the other Party notice of the amount of increase before <br />the final Plant design is fifty percent (50%) complete. If either Party desires <br />to increase the initial phase capacity after the final Plant design is fifty <br />percent (50%) complete, the Party requesting the increase in capacity shall <br />be obligated to pay all increases in the cost of design, engineering and <br />construction actually incurred as a result of designing the Plant to include <br />the requested increased capacity in the initial phase. Provided, however, that <br />no change in the final design of the initial phase capacity of the Plant shall <br />be authorized after the final design is fifty percent (50%) complete if such <br />design change could delay the anticipated completion date for the <br />construction of the initial phase of the Plant which is projected for <br />December 31, 1999. After construction of the initial phase, the City shall <br />expand the capacity of the Plant from time to time upon the request of either <br />Parry. The amount of any such expansion shall be the Minimum Plant <br />Expansion or a multiple thereof. The cost of any such expansion shall be <br />borne by the Parties in accordance with the percentage of the additional <br />capacity they intend to utilize. In the event only one of the Parties requests <br />the expansion, that Party shall be solely responsible for all costs for design <br />changes, engineering and construction of such expansion in the full multiple <br />increments of the Minimum Plant Expansion. <br />(b) Subject to the execution of a separate interlocal agreement (the <br />"Carrizo Project Agreement") entered into by the Parties <br />contemporaneously with this Agreement and pursuant to its terms the City <br />shall design and construct the Carrizo Facilities on the Plant Site. The <br />Carrizo Project Agreement shall include the rights and responsibilities of <br />each Party and at a minimum include provisions related to the relative <br />