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C. Policy of"first-refusal" <br /> 1. The designated water and sewer provider within <br /> a service area or interest area has first right to <br /> provide service if an adverse public health condition <br /> or essential public facility service need is established, and <br /> public water or public sewer service is determined to be <br /> required to address the adverse public health condition. <br /> 2. If the designated water and sewer provider declines to <br /> provide service, it must notify the other parties to the <br /> agreement with a statement of rationale. <br /> 3. The designated water and sewer provider may contract <br /> with another service provider to address the situation, in <br /> the manner prescribed in Section VI of this agreement, <br /> upon consultation with other jurisdictions. <br /> 4. If no other water and sewer provider is available, Orange <br /> County retains the right to address the adverse public <br /> health condition or essential public facility need in the <br /> manner prescribed in Section VI of this agreement. <br /> VI.LIMITATIONS ON,SERVICE <br /> A. Prohibitions and Limitations on Extension Into Interest Areas <br /> The development of land within interest areas is not projected to occur <br /> at urban densities, and therefore, public water and sewer service shall <br /> be prohibited in these areas, except as provided in this agreement <br /> {Section VI.B, VI.C, VI.D, VIT, VII.A, VII.B, VII.CI'. Individual on- <br /> site and small/community-scale alternative water supply and <br /> wastewater treatment systems not physically connected to central <br /> systems will be the primary methods of meeting the water and sewer <br /> service needs of existing and future development. <br /> 3. ibid. <br /> 9 <br />