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If there are legally sufficient protests within the area to be <br />detached exceeding 25%, then MWDOC shall conduct an election <br />within the area of detachment and if the election results in <br />approval of the detachment, then the provisions of this <br />Agreement shall remain in full force and effect. If the <br />legally sufficient protests from the area to be detached <br />exceed 50% or the confirmation election results in disapproval of <br />the detachment, then MWDOC shall disapprove the detachment as <br />required by statute and this Agreement shall have no force <br />and effect. <br />3. Section 8 of the LAFCO order of November 6, 1985, <br />as amended and made final on January 8, 1986 ("Section 811), <br />to the contrary notwithstanding, shall be interpreted and <br />implemented as follows: <br />a. MWDOC and the City agree that the condition <br />imposed by LAFCO on the detachment of the City <br />requiring allocation of MWDOC's reserves field for <br />capital improvements, operation and maintenance thereof <br />according to the formula set forth in Section 8 of <br />LAFCO's Resolution No. 85-78, requires MWDOC to pay <br />to the City the sum of $419,946.00; said sums to be held <br />in trust by MWDOC. The parties agree that said sums <br />in trust are subject to a prior lien for the Diemer <br />Filtration Plant/Santiago Aqueduct Intertie. The parties <br />further agree that said sums shall be paid by MWDOC as <br />set forth hereinafter. <br />-3- <br />