COSTA MESA COUNTY WATER DISTRICT (4)

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WHEREFORE, in consideration of 'their mutual covenants and promises, hereinafter contained, and subject to all of the following terms and conditions, the parties hereto do hereby agree as follows: 1. It is mutually agreed that this Agreement supersedes all previous intertie agreements between the City and the District, and that it is intended to be a statement of future policy and of the guidelines for implementation of that policy by each of the parties. This Agreement shall remain in full force and effect until and unless one of the parties shall give to the other not less than one (1) year's formal written notice of termination, or until and unless the parties mutually agree to termination of the whole or modification of a part of this agreement. 2. The parties agree that as many interties should be established between their two systems as is necessary and consistent with good engineering, operational and economic practices. However, it is mutually agreed that nothing contained in this agreement shall grant or cc . nvey, or he deemed to have granted or conveyed, any rights to, or the continued use of, any water, nor shall such accruei or be deemed to have accrued hereto- fore, from the use of any intertie connection between the water systems of the parties or the transmission or receipt of the water flowing through any such intertie connection. 3. Each of the parties hereby authorizes and directs its respective Director, Department Read or Manager who is responsi- ble for its water supply and water service management and opera- tion ("staff officials") to implement the provisions of this agreement. Said staff officials are hereby authorized to make arrangements for interties between the water systems of the par- ties without further authorization of the governing body of either party, except in those instances where, in the opinion of one or another of the staff officials, it appears that the 2.