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(e) of Chapter 5, Division 7, Title I, of the California Government Code, and entered into by and between the Cities of Belmont, Redwood City, and San Carlos, municipal corporations of the State of California, and the Menlo Park Sanitary District, a sanitary district formed pursuant to the Sanitary District Act of 1923 (Div. 6 [commencing with §6400, Calif. Health & Safety C.). (b) Authority's Treatment Plant. That sanitary sewerage treatment plant and associated appurtenances and facilities proposed to be constructed, operated and maintained by Authority as a part of Authority's sewerage facilities under and pursuant to the joint exercise of powers agreement described in paragraph l(a) hereof. Said treatment plant, appurtenances and facilities and the construction thereof are described in those certain plans and specifications entitled "Subregional Wastewater Works - Unit No.1 - Wastewater Treatment Plant," dated 1977 and prepared by Jenks & Harrison, Consulting Sanitary and Civil Engineers. (c) Capacity Rights (or "Treatment Capacity Rights"). The right to use sanitary sewerage treatment capacity of Authority's treatment plant, pumping, transmission, and disposal facilities, expressed in treatment of wastewater volume in millions of gallons per day (mgd), biochemical oxygen demand (BODS) in pounds per day (lbs/day) and total suspended solids (TSS) in pounds per day (lbs/day). Actual amounts of capacity rights shall be measured or determined in accordance with the practices, procedures and/or rules or regulations established by Authority or to which Authority or City are subject, and with such meters nr other equipment as may be required (at the cost of Countyj by Authority or City, or otherwise provided pursuant to such practices, procedures and/or rules or regulations. Ownership of capacity rights consists of the right to treatment of wastewater (sewage) in the maximum mgd of volume, lbs/day of BODS, and lbs/day of TSS specified herein and subject to quality and/or other pollutant limitations thereon established by Authority and/or City. Ownership of capacity does not include ownership of, or any right or title to, any real or personal property, or improvements of City or Authority. (d) Capital Costs. The capital costs of construction of Authority's treatment plant as defined and described in the joint exercise of powers agreement described in paragraph l(a) hereof, and including, but not limited to, the cost of all materials and work performed in such construction, all engineering, administration, legal, fiscal, and all other costs of work, materials, land acquisition, contingencies and services attributable to the capital costs of Authority's treatment plant. City. The City of Redwood City, a municipal corporation of the State of California. (f) City's and/or Authority's Sewerage Facilities. Any and all devices, facilities, equipment, improvements or systems owned or used by City or Authority, or by both -3-