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3 COST ALLOCATION <br />The City has no responsibility for costs related to the Distnct Work. The costs shown on this <br />exhibit are estimates only The final breakdown of costs will be based on the actual lump <br />sum bid price on the "Water System Improvements" schedule included in the City Bid <br />Documents, as adjusted by construction change orders Water Distnct 125 will also be <br />responsible for the following City's costs <br />A. Water Facility Installation Water District 125 agrees to pay the actual cost that the City <br />incurs for constructing the Distnct Work including excavation costs. <br />B Adjustments and Relocations Water Distnct 125 agrees to pay the actual costs the City <br />incurs for adjustments and relocations of water service lines, meter boxes, and valve <br />boxes throughout the Project limits as reasonably required to match grades or avoid <br />conflicts with proposed City improvements. <br />C Consultant Costs Water Distnct 125 agrees to pay the actual cost that the City incurs, <br />including consultant costs, for incorporating the District Work into the Project's <br />construction contract documents and the City's cost for construction management and <br />inspection coordination for the Distnct Work. <br />D Additional Expenses Water Distnct 125 agrees to pay any additional expenses incurred <br />in installing the Distnct Work due to any over excavation required or any other <br />unforeseen conditions related to the District Work which reasonably require additional <br />work and expense, including any additional trench width or depth attributable to errors in <br />Water District 125's design or conflicts not accounted for in Water District 125's design. <br />Any changes to the District Work perceived as necessary by the Contractor and any <br />change orders therefore must be approved in wnting by Water District 125 in advance of <br />such changes to the Distnct Work and any change orders related thereto <br />E Claims by Contractor Water Distnct 125 agrees to pay any claims made by the <br />Contractor relating to the Distnct Work that are valid and proximately caused by Water <br />Distnct 125, provided, Water Distnct 125 at its sole expense shall have the nght to <br />defend any claims made by the Contractor relating to the Distnct Work if Water Distnct <br />125 determines all or any part of the claim is not valid. These claims may include delays <br />caused by installing the Distnct Work, delays caused by Water District 125 providing <br />meters, or any other conflicts between the Contractor and Water Distnct 125 Any such <br />claims must comply with the definition and procedure regarding claims in the Project <br />contract and must be venfiable or substantiated claims and be subject to binding <br />arbitration. <br />F Invoice. Water Distnct 125 agrees to pay the City within forty -five (45) days of <br />receiving a correct invoice by the City for amounts that the City has been invoiced by the <br />C: \DOCIIMF.- 1 \imi1ne \LOCALS -1 \Temp \FINALW- 1.DOCP: \PROJECTS \A DR Projects \00dr06 (Cascade Vicw) \WD125Agrccmcnt.DOC <br />358829100081315499.01 16rfvOJLDOC (3/9/053/8105) -3- <br />