Agreement/Reche Canyon Mutual Water Company

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constructing, and installing the Oversized Portion, subject to reimbursement from City for the Oversized Portion pursuant to this Agreement. 2.6 Benefits of Agreement. The parties recognize that it is in their best interests to coordinate the design, construction and installation of the Project so as to efficiently implement City's overall capital improvement master plan and avoid duplication of facilities. This Agreement will also have the following benefits and serve the following interests of the City: (a) This Agreement will allow for funding and construction of the Facility at this time, rather than at some future and undetermined time when adjacent property owners may apply to City for connection to the Water System and for the initiation of water service. (b) As a result of this Project, the terminus for delivery of Emergency Service will be Company's existing reservoir rather than at a point within the Water System. The Project will also enhance the quality of the water delivered to customers within services areas of City and Company. (c) Construction and installation of the Project will facilitate new water sales from Company for the provision of Emergency Service. There is also the potential for additional water sale revenues from future customers who may connect to the Project. 3. TERMS. 3.1 Design of Project. Company shall be solely responsible for the design of the Project, including all costs and expenses therefor. Prior to initiation of construction and installation, Company shall submit to City plans and specifications for approval by City. Company shall be solely responsible for obtaining all required federal, state and local permits and approvals. The plans and specifications for the Project shall be approved by City subject to its sole and reasonably exercised discretion. 3.2 Construction and Installation of the Project. Company shall be solely responsible for construction and installation of the Project, including all costs and expenses therefor. The Project shall be fully complete and ready for acceptance by City within six (6) months after execution of this Agreement. City shall monitor the contracting process, and may assist Company where appropriate. 3.3 Award of Contracts. Company shall be solely responsible for securing appropriate contracts for construction and installation of the Project in compliance with applicable federal, state, and local laws, rules and regulations. Since the Project will be paid for in part with public funds and will be transferred/conveyed to City upon completion, it is likely that the construction and installation work will come within the definition of "public works" for the purpose of prevailing wage requirements under Labor Code Section 1720. Therefore, Company shall comply with all applicable federal, state, and local laws, rules and regulations RVPUBUFF1607452 2