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F. Under Government Code, section 56133 and OC LAFCO's "Policy & Procedures <br />for the Review and/or Processing of Out -Of -Area Agreements by the Executive Officer (Gov't <br />Code §56133)," this Agreement is not an out -of -area service agreement requiring OC LAFCO's <br />review and approval because; (1) Santa Ana and Tustin are both public agencies; and (2) upon <br />amuexation, Santa Ana will have the exclusive authority to provide Potable Water Services to the <br />Island Parcels, However, Santa Ana has found that such activities can be more efficiently and <br />more conveniently performed by Tustin pursuant to this Agreement at this time. <br />G. This Agreement will in no way adversely impact water services to current <br />customers of Santa Ana or Tustin, will not induce growth, and will not result in the duplication of <br />services in the territory of either city. <br />H, This Agreement serves the public interest, economy, and general welfare. <br />TERNIs <br />NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants <br />as well as for other good and valuable consideration, the receipt and sufficiency of which is <br />acknowledged, the Parties agree as follows: <br />CONSENT FOR AND PROVISION OF SERVICES <br />I.I. Santa Ana's Consent for Service. Except as provided in Section 1.2, Santa Ana <br />consents to Tustin's provision of Potable Water Service to the Island Parcels, upon Santa <br />Ana's annexation of the Island Parcels. <br />1.2. Following the annexation, in the event that Santa Ana has or creates the <br />infrastructure and the capacity to provide Potable Water Service to the Island Parcels, any <br />new development or redevelopment within the Island Parcels shall be served by Santa Ana. <br />1.3. Tustin's Provision of Service. <br />1.3.1. Provision of Service. Tustin agrees to provide Potable Water Service to the <br />Island Parcels in a manner and at a level consistent with Tustin's provision of services to <br />its remaining service area, subject only to a changeover as set forth in Section 2 of this <br />Agreement. <br />1.3.2. Applicable Law. Tustin's provision of the Potable Water Service shall <br />comply with applicable local, state, or federal statutes, regulations, rules, or policies. <br />2 of 7 <br />