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<br />1. Approval of calculations of Proportional Annual Water Use required by <br />Section 3.14 and Attachment J, "Water Use Measurement and Tabulation"; <br /> <br />2. Approval of amendments to Attachments J and K-3 and K-4, "25- Year <br />Payoff Schedules for Existing Rate Base"; <br /> <br />3. Agreement that the Water Meter and Calibration Procedures Manual to <br />be prepared by the SFPUC may supersede some or all of the requirements in Attachment J, as <br />described in Section 3.14; <br /> <br />4. Conduct of Wholesale Customer review of SFPUC's calculation of annual <br />Wholesale Revenue Requirement/Change in Balancing Account described in Section 7.06; <br /> <br />5. Approval of an adjustment to Wholesale Revenue Coverage as described <br />in Section 6.06. <br /> <br />B. A majority of the Wholesale Customers may, without amending this Agreement, <br />delegate additional administrative functions to BAWSCA. To be effective, such expanded <br />delegation must be evidenced by resolutions adopted by the governing bodies of a majority of <br />the Wholesale Customers. <br /> <br />C. Unless otherwise explicitly stated, the ~dministrative authority delegated to <br />BAWSCA may be exercised by the General Manager/CEO of BAWSCA, rather than requiring <br />action by the BAWSCA Board of Directors. In addition, the Wholesale Customers may, with the <br />consent of BAWSCA, delegate to BAWSCA the initiation, defense, and settlement of arbitration <br />proceedings provided for in Section 8.01. <br /> <br />. 8.05 Preservation of Water RiQhts; Notice of Water RiQhts ProceedinQs <br />A. It is the intention of San Francisco to preserve all of its water rights, irrespective <br />of whether the water held under such water rights is allocated under this Agreement. Nothing in <br />this Agreement shall be construed as an abandonment, or evidence of an intent to abandon, <br />any of the water rights that San Francisco presently possesses. <br /> <br />B. San Francisco shall use its best efforts to give prompt notice to BAWSCA of any <br />litigation or administrative proceedings to which San Francisco is a party involving water rights <br />to the Regional Water System. The failure of San Francisco to provide notice as required by <br />this section, for whatever reason, shall not give rise to any monetary liability. <br /> <br />-76- <br /> <br />1840795.8 <br />