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2. PROVIDING WATER TO COUNTY SERVICE AREAS. CITY agrees to serve any COUNTY Service Area now in existence or which may hereafter be created as a COUNTY service area, in the South Stockton Master Water Plan study area boundary as shown on Exhibit "A" and which PLAN is incorporated by reference as a part of this agreement. i� CONSTRUCTION OF PIPELINE. CITY shall construct a pipe- li ez from existing COUNTY facilities on Airport Way to existing COUNTY lines on Mathews Road and the I-5 Freeway more par.- ticularly described in Exhibit "C", attached hereto and made a part hereof. Such pipeline shall provide additional fire protec- tion and a more reliable water supply for the hospital and jail i complexes located within the area covered by the South Stockton Master Water Plan. Construction of such pipeline shall be completed within two (2) years from the date of execution of this agreement. 4. OPERATION AND MAINTENANCE OF THE SYSTEh1. CITY shall operate and maintain COUNTY system as set out in Exhibit "B", using the same rates, rules, and regulations which are in effect in CITY's North Stockton Water System as adopted by CITY. It is understood and agreed that CITY's rates, rules, and regulations may be changed from time to time by the Stockton City Council. CITY shall give COUNTY sixty (60) days prior written notice of any proposed changes to CITY's rates, rules, and regulations before such time as the Council is scheduled to formally consider such changes in order that the COUNTY or any other agency served by the CITY Water System has sufficient time to review the pro- posed changes and to make appropriate comments thereon. It is also understood and agreed that the north and south Stockton systems will be managed and operated by CITY as a single system. CITY agrees to allow connections and to provide service to the unincorporated areas of COUNTY without prejudice and under the same rates, rules, and regulations as CITY residents. Either party may terminate the right of CITY to operate the COUNTY's Water System, as shown in Exhibit "B" upon the party giving 180 days written notice of such termination prior to the effective date of the termination. Regardless of such termination, the irrevocable rights granted to CITY under Clause 9 of this agreement- shall survive such termination. The parties agree that San Joaquin County will not be required to pay CITY water connection fees for COUNTY owned and operated facilities that are located within the area described in Exhibit- B, herein. COUNTY will., however, be responsible for payment of costs for the necessary meters, meter vaults, and auxiliary piping required to serve said COUNTY facilities. 5. GUIDE FOR PLANNING MID DEVELOPMENT OF WATER - 2 - SUPPLY SOURCES AIQD `PRANShfISSIOs FACILI`I'IES. CITX's South Stockton - 2 -