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1 23 14 <br /> Page 12 of 19 <br /> treatment facility. The amount contributed by both entities will be <br /> based on their pro-rata use of the facility's capacity. <br /> 3. Distribution System. At least annually, LPWWA and LDWA shall <br /> contribute to a reserve fund for the replacement of that portion of <br /> LDWA's distribution system that is used to deliver water to <br /> LPWWA, which are only: Lake Durango Tank, Shenandoah Tank, <br /> Shenandoah Pump Station, approximately 29,000 feet of 6" <br /> diameter distribution piping and 26,000 feet of 8" diameter <br /> distribution piping. The amount contributed by both entities will <br /> be based on their pro-rata use of the above-listed system <br /> components. <br /> 4. Reserve Fund Expenditures. The funds LPWWA provides to the <br /> reserve fund shall be dedicated to the facilities upon which <br /> LPWWA relies. All expenditures of the reserve fund shall be <br /> made at LDWA's sole discretion on the aforementioned facilities. <br /> LPWWA shall not acquire any interest in or control of the reserve <br /> fund by the payment of rates for treated water. <br /> v. Treatment Modification Costs. <br /> 1. Required by Regulations. When compliance with regulatory <br /> standards requires modifications to the treatment facility,the <br /> Parties shall share the modification costs on a pro-rata basis. <br /> When LPWWA contributes funds for treatment process <br /> modifications, LDWA shall consult with LPWWA prior to <br /> designing/selecting any modification(s). <br /> 2. Not Required by Drinking Water Regulations. Treatment <br /> modification costs that are not necessary to meet regulatory <br /> standards shall be negotiated between the Parties. <br /> vi. LPWWA's Pump. LPWWA shall supply a pump for installation at <br /> the Shenandoah pump station for LPWWA's delivery of water at <br /> Blue Hill. LPWWA shall own said pump and shall be solely <br /> responsible for all maintenance and repair costs for the pump. <br /> Excepting LPWWA's pump, LDWA shall be responsible for all <br /> maintenance, repairs, and upgrades for LDWA's Shenandoah pump <br /> Station. <br /> d. Rate Committee. A Rate Committee consisting of the LDWA Manager, <br /> the LPWWA Manager, two members of the LDWA Board, and two <br /> members of the LPWWA Board shall be formed for establishing the <br /> reserve fund, for setting the rate structure for the treated water delivered by <br />