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hfy <br /> Y <br /> agreed connection points. The master meter installation(s) shall meet <br /> the specifications and approval of the City and shall become the <br /> property of the City after installation. The actual point of delivery at <br /> each connection point shall be the downstream flange of the valve <br /> downstream of each master meter. If the master meter is not connected <br /> directly to the City's pipeline, the actual point of delivery shall be the <br /> downstream flange of the valve nearest the City's pipeline. <br /> 3. Quantity of Water. The City and the District agree that each have <br /> made, and will continue to make, significant capital investments in <br /> water supply facilities that are interdependent and that coordinated <br /> planning will be required throughout the term of this contract to <br /> maximize public benefits and minimize costs. The parties acknowledge <br /> that peak day demands of the District will not exceed one hundred six <br /> (106) million gallons per day. Estimated average daily demands and <br /> peak day demands of the District and its major wholesale customers for <br /> the near future are shown on Attachment A attached hereto. The <br /> quantity of water delivered shall be measured by the master meters <br /> referred to in paragraph 2 above. <br /> 4. Quality of Water. The City agrees that all water delivered to the <br /> District at the connection point(s) shall be of the same standard and <br /> quality as normally delivered to the City's other customers. The City <br /> shall be responsible for meeting state and federal standards for <br /> drinking water at the connection points. All water supplied by the City <br /> for use or sale by the District shall be upon the express condition that <br /> after water passes the connection points, it becomes the property of the <br /> District, and the City shall not be liable for any degradation of water <br /> quality and resulting damages that may occur beyond said point. The <br /> City shall not be responsible for acts of sabotage that might degrade <br /> the quality of water delivered to the District. <br /> 5. Rates and Charges. <br /> A. Rates for Water—The District shall be billed and pay to the City <br /> for each million gallons of water delivered as determined in the <br /> following manner: <br /> 1. Demand charge of $30.65 per million gallons shall be set and <br /> remain in effect until December 31, 2011. After that date, the <br /> City reserves the option of reasonably modifying the demand <br /> charge by using industry accepted rate-making methodology. <br /> 2. A commodity charge of $184.35 per million gallons shall be set <br /> and remain in effect until at least March 1, 2005. Future <br /> commodity charges will be based on cost of service studies <br /> 2 9 <br />