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KLG 1. ar <br />A <br />WATER SYSTEMS ACQUISITION AGREEMENT <br />THIS AGREEMENT, made and entered into this 20th <br />day of February 1979, by and between THE CITY <br />OF GARDEN GROVE, a municipal corporation of the State of <br />California, ("GARDEN GROVE"), the City of Garden Grove Water <br />Corporation, a non-profit corporation organized under the <br />laws of the State of California, ("CORPORATION"), and the <br />CITY OF SANTA ANA, a municipal corporation of the State of <br />California ("SANTA ANA"), <br />W I T N E S S E T H <br />RECITALS: <br />1. Garden Grove is a general law city located <br />within Orange County, California. <br />2. Santa Ana is a charter city located within <br />Orange County, California. <br />3. Garden Grove operates, maintains and has prop- <br />erty rights in a domestic water system, which water system <br />is referred to as the "Entire Garden Grove System." <br />4. A portion of the Entire Garden Grove System <br />was once owned by the Dyke Water Company, which portion is <br />hereinafter referred to as the "Dyke System." <br />5. A portion of the Dyke System is located within <br />the City of Santa Ana, which portion is described more fully <br />in the Deed attached hereto, identified as "Exhibit A" and <br />incorporated herein by this reference, and which portion <br />of the Dyke System is hereinafter referred to as the "Encum- <br />bered Santa Ana Subsystem." <br />6. Another portion of the Entire Garden Grove <br />System is located within the City of Santa Ana, which por- <br />tion is not a part of the Dyke System, and which portion <br />is hereinafter referred to as the "Unencumbered Santa Ana <br />Subsystem," which portion is more fully described in the <br />