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DUPLICATE ORIGIIIAL REIMBURSEMENT AGREEMENT (First Step Recycling Interim Improvements) THIS AGREEMENT, ("Agreement") is made, entered into and effective as of the 15th day of May, 2002, by and between the SOUTH BAYSlDE SYSTEM AUTHORITY, a public entity ("Authority"), and the CITY OF REDWOOD CITY, a municipal corporation of the State of California, ("City"); WITNESSETH: WHEREAS, City and Authority have instituted a project designated the "First Step Water Recycling Project" ("First Step Project") under which Authority provides recycled wastewater to City that conforms to State requirements for disinfected tertiary recycled water (22 CCR §60301.230) and City uses and provides the recycled water to other users primarily for landscape irrigation in a portion of the Redwood Shores area of City; and WHEREAS, Authority modified its wastewater treatment facilities and revised its operational procedures on a temporary basis for the First Step Project; and WHEREAS, the First Step Project schedule includes construction of the hereinafter defined "Improvements" that are dedicated to the production of recycled water, allow Authority to resume standard wastewater treatment operations and can be integrated into a future proposed recycling project; and WHEREAS, City and Authority desire to provide for the construction of, and payment for, the Improvements; NOW, THEREFORE, City and Authority agree as follows; 1. Definitions. The following words and terms used in this Agreement shall have the meanings hereinafter respectively ascribed thereto: a. Improvements: the improvements described in Authority's construction contract documents entitled, "Plans and Specifications for d/shared/SBSA/ReimbAgmtRecyl DES/hs 04/12/02 1