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4. Reimbursement. OC San's obligation to reimburse City includes the actual <br /> total costs for construction of the Manhole Adjustments for each Project, plus <br /> an Administrative Fee. The "Administrative Fee" is intended to cover the City's internal <br /> costs related to administration of the Manhole Adjustments and is equal to fifteen <br /> percent (15%) of the total costs of the Manhole Adjustments for each Project. <br /> a. For each qualifying Project, the anticipated costs shall be presented <br /> to OC San in the form of a Supplemental Agreement, which will include all relevant scope <br /> and costs. The parties shall execute each Supplemental Agreement prior to, or concurrent <br /> with, the City's Project activities. <br /> b. Supplemental Agreements may be executed by the City's City <br /> Manager, or their designee, pursuant to the requirements of this Master Agreement. Such <br /> Supplemental Agreements may be made in the form of letter agreements or instruments <br /> as agreed between the Parties. <br /> C. In any event, failure of the Parties to execute a Supplemental <br /> Agreement shall not relieve OC San from obligation to pay for Manhole Adjustment Costs <br /> which are necessarily incurred as a result of City Projects, subject to City responsibilities <br /> outlined below. <br /> 5. Timina of Reimbursement. For completion of the Project, City shall submit <br /> an invoice to OC San setting forth the cost for the Manhole Adjustments and the <br /> amount of the Administrative Fee. Invoices shall be accompanied by a copy of <br /> appropriate documentation to substantiate the amounts included in the invoice. OC San <br /> shall provide reimbursement funds to City within thirty (30) days of receipt of all required <br /> invoices and supporting documentation. <br /> 6. City Responsibilities. For each applicable Project, the City shall: <br /> a. Be responsible for compliance with the California Environmental <br /> Quality Act and all other permitting requirements. <br /> b. Advertise for bids, hire a contractor, approve the work, and <br /> administer the contract for City's Project which includes the Manhole Adjustment work. <br /> C. Include a separate line item in its bid documents for the Manhole <br /> Adjustment work. This line item will be identified and labelled as "Adjust OC San <br /> Manholes per OC San Standard Drawings S-050A, S-055 and S-055K or similar <br /> designation. <br /> d. Allow OC San a period of two (2) weeks to review the proposed bid <br /> unit prices for Manhole Adjustment work. OC San reserves the right to decide, based on <br /> this review, whether to proceed with the reimbursement process or to make other <br /> arrangements to complete the Manhole Adjustment work. <br /> Page 2 of 7 <br /> 55880.00002\43166451.1 <br />