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<br />I <br /> <br />I <br /> <br />I <br /> <br />linear feet of pipeline, a ground storage tank, a booster pump station, and telemetry to send a tank <br />level signal to the control valve and the City's Supervisory Control and Data Acquisition <br />("SCAD A") system. <br /> <br />Section 2.02. Oversizing of Delivery Facilities. The City may construct the Delivery Facilities with <br />a capacity exceeding TXI's needs for the TXI Facility. The City will be responsible for the additional <br />construction cost of any such oversizing requested, with the additional cost being the difference in <br />alternative bids submitted by the construction contractor for the Delivery Facilities, one for the size <br />required for TXI, and the other for the size requested by the City. <br /> <br />Section 2.03. TXI Payment of Delivery Facilities Cost. <br /> <br />A. Engineering Services. TXI agrees to reimburse the City for the costs incurred by the <br />City for engineering services associated with the design and construction ofthe Delivery Facilities. <br />The engineer selected by the City to perform the engineering services (the "Engineer") will be a <br />professional engineer registered in the State of Texas. Prior to entering into a contract with the <br />Engineer, the City will provide TXI a copy ofthe negotiated scope and fee proposal for the services. <br />After TXI has reviewed, and at its sole discretion, agreed in writing to the fees set forth in such <br />negotiated scope and fee proposal (the "Engineering Fees") TXI will pay the Engineering Fees to the <br />City prior to the City Council award ofthe engineering services contract. The City agrees to use the <br />funds provided by TXI under this paragraph only for the costs described. The City will provide to <br />TXI a copy of each paid monthly itemized invoice for the Engineer. Any Change in Services request <br />for the Engineer will be provided to TXI for review prior to City approval, unless the cost for the <br />Change in Services will be borne entirely by the City. TXI will pay to the City any additional fee <br />amount related to a Change in Services (BUT ONLY to the extent such Change in Services has been <br />approved in writing by TXI) within 15 days ofthe receipt ofthe Change in Services. In the event a <br />Change in Services is required due to reasons other than a change approved by TXI, the cost ofthe <br />Change in Services will be paid by the City. <br /> <br />B. Easement Acquisition. TXI agrees to pay to the City, within 10 days of the Effective <br />Date, the amount of $50,000 as a deposit towards the costs for the City's acquisition of easements <br />related to the Delivery Facilities. These costs will consist of 1) costs for right-of-way agent services, <br />2) cash compensation costs to property owners, 3) the value of non-cash compensation (such as <br />replacement fencing, driveway improvements, etc.) connected with the acquisitions, 4) a policy of <br />title insurance, and 5) eminent domain costs, if needed, including the costs and fees for an appraiser <br />and attorney (cumulatively, the "Easement Costs"). The City agrees to use the funds provided by TXI <br />under this paragraph only for the described Easement Costs. The City will provide a monthly report <br />to TXI of funds expended from this deposit. The City will refund to TXI any of the deposit amount <br />which remains within 30 days of the completion of easement acquisition. If additional funds are <br />needed to pay the costs described, the City will provide one or more itemized invoices to TXI for the <br />costs, and TXI will pay the amount of each such invoice to the City within 30 days, provided the <br />total amount expended on the Easement Costs is either approved in advance by TXI, does not exceed <br />10 % above the fair market value of the real property included in the easement, is the outcome of <br />legal action under eminent domain proceedings, or the cumulative amount expended on the <br />Engineering Fees, Easement Costs, and an estimate of the Construction Costs does not exceed the <br />maximum amount set forth in Section 2.03D below. <br /> <br />3 <br /> <br />!fd 3PI!o) <br />