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E. On July 12, 1983, the City authorized a contract for <br />Phases II and III (final design and construction services for <br />the proposed Foothill Reservoir) with Camp, Dresser & McKee, Inc. <br /> <br /> F. On July 26, 1983, the City and Prudential entered into an <br />agreement providing for reimbursement to City for final design of <br />Foothill Reservoir and Foothill Road pipeline and Foothill Road <br />Booster Station No. 2, site acquisition costs, assessment <br />district engineering costs and site construction services. <br /> <br /> G. City has prepared an ini'tial study of site preparation <br />and construction of Foothill Reservoir dated October 6, 1983, and <br />Foothill Road pipeline and Foothill Booster Station No. 2 are <br />part of the study. <br /> <br /> NOW, THEREFORE, in consideration of the faithful performance <br />of the promises, terms, conditions and covenants set forth <br />herein, the parties hereto agree as follows: <br /> <br /> 1. Time of Essence. Time is of the essence in the <br />performance of this agreement. The work and improvements <br />required by this agreement to be completed by Developer shall be <br />completed within one (1) year from the above-mentioned date of <br />this agreement subject to delays beyond the control of Developer. <br /> <br /> The City shall extend the time for completion of improvements <br />hereunder, upon good cause being shown by the Developer. Any <br />such extension may be granted without notice to the Developer's <br />surety, and extension so granted shall not relieve the surety's <br />liability on the bond to secure the faithful performance of this <br />agreement. <br /> <br /> 2. Work. Provided City obtains the easements, <br />rights-of-wayand other property rights necessary to construct the <br />work, Developer will do or cause to be done and performed the <br />following described work: <br /> <br /> Construction of Foothill Road pipeline including all <br /> necessary appurtenances and construction of Foothill <br /> Road Booster Station No. 2 including all necessary <br /> piping and appurtenances per Plans and Specifications <br /> prepared by Camp Dresser & McKee, Inc. dated <br /> December, 1984. <br /> <br />All as mo~e particularly shown on the plans attached as <br />Exhibit "A". <br /> <br /> 3. Inspection. City shall inspect all of said work through <br />an inspector employed by City at the cost and expense of <br />Developer, and Developer shall pay City the cost of such <br />inspection which shall be 4% of the estimated cost. <br /> <br /> The City Engineer has tentatively fixed the inspection <br />costsdue upon execution of this agreement' as $25,200.00. <br /> <br /> - 2 - <br /> <br /> <br />