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I'i-~~ ,.- i:.oJ.J.,: Representatives of the City of San Diego and of the San Diego County Water Authority continued their negotiations with the District Board of Directors and staff with respect to the means by which the San Diego County Water Authority could obtain Colorado River water through the District aqueduct and the San Diego aqueduct, The latter, extending from the west portal of San Jacinto tunnEl to San Diego's San Vincente reservoir, is under construction by the United States Navy and has been leased to San Diego, pursuant to t.he Lease-Cont.ract entered into between the United States and the City .of San Diego on October 17, 1945. Determination was made that the corporate area of the San Diego Count)' Water Authority should ue annexed to the District upon terms and conditions requiring (1) the merger of the rights to Colorado River water under the Water Delivery Contract between t.he United States and the City of San Diego dated February 15, 1933, with the District rights under its Water Delivery Contract of April 24, 1930 (amended September 28, 1931) ; (2) assignment to the Authority of the city's rights and obligations under the Lease-Contract covering the San Diego aqueduct, with the ex- ception of certain obligations of the city to the Government under the Lease-Contract; (3) the performance by the Authority of all obligations required under the Lease-Contract, as so assigned, reo suIting in acquisition by the Autbority of title to the San Diego aqueduct upon completion of the rental period estimated to be thirty years, whereupon title to the northerly portion of the aque- duct will be transferred to the District in consideration of the pay. ment by the District of one-half the true cost of this aqueduct as defined in the Lease-Contract, the District to be given possession of the northerly half during the rental period and to make annual payments equal to one-half the amount of the annual rental to be paid by the Authoritr to the United States; (4) the levy by the District upon taxable property within the Authoritr of special taxes in substantially equal annual levies over a period of thirty years, sufficient to produce an aggregate sum equivalent to the amount of taxes that would have been levied on property within the area of the Authority had that area been included within the District from, the timc of the incorporation of the latter, with in. terest at four per cent per annum from the respective delinquency dates of the respective annual levies to the date of annexation, Forms of the various documents involved in the proposed annexa. tion were drafted and revised after conferences, As noted below ,1 E T R 0 POL I T :1 N II' ATE H D 1 S T R leT .