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The amount of this fee waiver is Kelley's pro rata share of the sewer line extension cost(including design and permit costs) as determined by the Area of Benefit calculations/formulas/fee schedules(see Section 10). Based on the current City estimate of $790,000 for sewer line extension.cost, this fee would be approximately$240,000. The final amount will be determined once the final costs of the extension are entered into the AOB calculations. ?. :k 10. Kelley agrees to design-and construct municipal sewer line extension. Kelley agrees to design and construct a municipal sewer line extension (8,600 linear feet of 6" force main) at its cost in conformance with City'standards and subject to the City's review and design approval.The design of the sanitary sewer extension shall be for a 6"force main system substantially in accordance with option 2 as presented to Kelley on December 9, 2010 and attached hereto as Exhibit"D." In addition, the City shall agree to limit Kelley's unreimbursable expense for the sanitary sewer line extension to the greater of either a) $240k or b) Kelley's prorated share of the costs ("1#nreimbursable Sewer Line Expense.") City will create an Area of Benefit program (".AOB") to provide:for the payment to Kelley of appropriate monetary reimbursement from any other properties, that subsequently connect to the sewer line n sums collected b the Cit from third parties pursuant to extension that�s installed by Kelley.Other than y y p the terms of the Area of Benefit, parties agree that Kelley shall not have any right to reimbursement or credit from the City for sums contributed by Kelley in excess of the Unreimbursable Sewer Line Expense. If Kelley provides.City cost information for the sewer line extension City agrees to create and approve the AOB prior to the annexation conditioned only on successful annexation and City acceptance of improvements. Kelley agrees to solicit competitive bids for the work once the design is complete to verify the actual cost of the:sewer line extension and installation. Those bids will .be-subject to the- review of the City to verify the costs. The City also agrees to assess and collect the reimbursement fees from the other properties at the time sewer connection fees are normally paid, and pay the, reimbursements to Kelley within 30 days of collecting the reimbursement fees. Such payments shall be Jump sums, and not subject to installment payments. if the City allows other properties to pay the reimbursement fee in installments over time, the City shall still be obligated to pay 100% of the reimbursement due 'to Kelley from the particular property within 30 days of collecting the first installment. City will not pay out any reimbursements prior to their collection. 'if the project uses SCIP funding for the sewer line extension, the AOB responsibilities imposed here on the City will be replaced by the SCIP program. Kelley will be responsible for coordinating the application and paying related fees for the SCIP program, and the City agrees to support Kelley's use of the SGP including providing/approving City required documents as specified in the SCIP program. City shall not, however, pledge any City funds or incur costs other than internal staff costs to support Kelley's SCIP funding effort. City shall not require the installation of the sewer line extension until such time'as Kelley has obtained financing to pay for the design and installation of the sewer line extension. If the City or another entity electstoconstruct the sewer line extension to Kelley's property before Kelley exercises its right to construct said extension then section 10 of this agreement shall be deemed void, and Kelley shall connect to the sewer line and pay the normal, published connection fees in effect at the time of the connection. l t - 5 I