CCP 04-24-2006 - Laserfiche WebLink

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. . . the eligible project costs are $ I ,000,000.00 and a DEED grant is awarded, a $250,000.00 local match would bc requircd. Council Grant money may be used to fund up to 13% of the DEED eligible project cost, or $130,000.00. If a Council grant were awarded and no additional funding is available through the County or any other source, then CMK would be responsible for paying the total local match of $ ] 20,000.00. CMK hereby agrees and confirms that the City shall have no liability or responsibility for any costs arising out of the Remediation Project, this Agreement, or arising out of the City's applications for the Grants. 2. Pavment to Citv bv CMK. CMK shall make payment to the City within twenty (20) days after receipt of written request for that portion of its loeal match obligation that is due and payable pursuant to the awarded Grants, this Agreement, and the completed work on the ]{crnediation Project. The City shall provide CMK with written documentation of the amount owed by CMK, to CMK's reasonable satisfaction. 3. Lctter of Credit. Concurrently with theex.ecutiOlvOfthis Agreement, CMK shall post a letter of credit with the City in the amount of $1 00,000.00 in form reasonably aeceptable to the City as security for the performance ofCMK's obligations hereunder (the "LOC"). The LOC shall contain the It,ll owing terms: a. If no Grants are awarded to the p:U1ies on or before Augnst 1, 2006 (the "Grant Determination Date"), the LOC shall be returned to CMK, and this Agreement shall automatically terminate, and neither party shall have further obligations hereunder. b. If onc or more Grants are awarded to the parties on or beforc the Grant Detcrmination Date, thc LOC amount shall be adjusted in light of the award amounts (either upward or downward, as applicable) to be equal to CMK's corresponding maximum local match obligation hereunder. For example, if the total Grant awards are equal to the example set forth in Section I of this Agreement, the LOC amount would be incrcased by $20,000.00 to $120,000.00. In such case, CMK shall post a replacement LOC within tcn (10) days after the Grant Determination Date. c. The LOC shall be in force until such timc as CMK's obligations under this Agreement are satisfied and all costs and expenses incurred in conncction with the Remediation Project havc been paid and evidence of same has been submitted to the City. d. The City shall not be authorized to draw against the LOC until it has given CMK writtcn notice of its failure to fulfill its payment obligation under Section 2 ofthis Agreement and thirty (30) days to cure such failurc. 4. Noticq. All notices required or allowed hereunder shall be in writing and shall be delivered to the parties as follows: 2