Water Line Construction. In order to supply municipal water to the Project, the City will be required to replace and install a 12" water line and 8" wastewater line around the Project site, the cost for these improvements is estimated at Five Hundred Thousand Dollars ($500,000.00). In addition, in order to provide the 3,500 gallons per minute required for adequate water flow for the fire protection system, the City will have to construct a 24" water line from the Jefferson Water Treatment Plant to the site at an estimated cost of One Million Four Hundred Ten Thousand Dollars ($1,410,000.00) (collectively the "Water Line Improvements"). The total amount of the estimated costs of the Water Line Improvements is One Million Nine Hundred Ten Thousand Dollars ($ 1,910,000.00). The obligation of the City to cause the design and to construct the Water Line Improvements is expressly subject to and conditioned on EPC providing the Letters of Credit (hereinafter defined) and the Corporate Guaranties (hereinafter defined) guaranteeing repayment of the costs of the Water Line Improvements incurred by the City in the event of early termination of this Agreement or in the event the EPC fails to timely cause the Commencement and/or Completion of Construction of Phase I. The City shall commence design of the Water Line Improvements within ten (10) days after receipt of the Design Letter of Credit and Design Corporate Guarantee (hereinafter defined). The City shall, subject to events of Force Majeure, use its best efforts to cause the completion of the design on or before nine months after such receipt of the Design Letter of Credit (the "Design Completion Deadline") and shall, subject to events of Force Majeure, use its best efforts to cause the completion of the construction of the Water Line Improvements on or before one year after the later of the Design Completion Deadline and the date of City receipt of the Construction Letter of Credit/Corporate Guarantee. For purposes of this Section "Design Letter of Credit" shall mean an irrevocable letter of credit, from a financial institution and in a form reasonably approved by the City, guaranteeing to the City reimbursement of Two Hundred Thirty-eight Thousand, Seven Hundred Fifty Dollars ($238,750.00) toward the design costs of the Water Line Improvements in the event of early termination of this Agreement pursuant to Section 2.5, or in the event EPC fails to timely cause the Commencement and/or Completion of Construction of Phase I. For purposes o...
Water Line Construction
