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with respect to the sewers within their jurisdiction and will perform the determination by whatever <br />means and methods they deem appropriate. The results of such determinations must be shared with <br />the other Party by October 1st of each year when the results indicate that a shared sanitary sewer is <br />near or over capacity as defined in Section 1. <br />(b) Construction of New Shared Sanitary Sewer <br />If a Party detennines that any shared sanitary sewers within its jurisdiction will not have <br />sufficient capacity to provide service without limiting connections for the next calendar year, then <br />the Parties shall meet and determine within sixty (60) days the size and estimated cost of a new, <br />larger sanitary sewer that will provide adequate capacity for ultimate planned development within <br />the tributary areas. The Parties anticipate that such new, larger sanitary sewers will generally be <br />designed and constructed as replacements for the then -existing shared sanitary sewers. Unless <br />otherwise agreed by the Parties, the Party within whose jurisdiction the new sanitary sewer will be <br />located shall be responsible for preparation of the plans and specifications for the new sanitary <br />sewer. The Parties shall meet to review the plans and specifications (i) upon their fifty percent <br />(50%) completion and (ii) upon their completion, but prior to the solicitation of bids for constriction <br />of new sanitary sewer. <br />The cost of the new sanitary sewer, including in-house and outside engineering, <br />administrative, and construction, shall be apportioned between the parties in the proportions set forth <br />on Exhibit `B." <br />The construction of the new line shall be scheduled to start by the mutual agreement of the <br />parties, but in no event shall it be undertaken prior to the next July 1st so that both parties may <br />budget for the required funds, unless earlier construction is required due to an immediate threat to <br />public health and welfare or unless the parties mutually agree to earlier commencement of <br />construction. <br />Prior to commencing construction, the Party within whose jurisdiction the new sanitary <br />sewer will be located shall invoice the other Party for its apportioned share of the estimated total <br />cost. The other Party shall promptly deposit the invoiced amount with the initiating Party. The <br />initiating Party shall keep these monies in a segregated fund and use them only for the project for <br />which they were deposited. Upon completion of the work, and payment of all costs, the initiating <br />Party shall submit a report setting forth all costs incurred together with either an invoice, or a refund, <br />for the difference between the actual apportioned cost and the deposit (and any related accumulated <br />interest). <br />(c) Withdraw of Tributary Areas in Lieu of Contribution to Cost of New Shared Sewer. <br />In lieu of contributing to the cost of a new, larger shared sanitary sewer, a Party may elect to <br />withdraw the areas within its jurisdiction tributary to the shared sanitary sewer from coverage under <br />this Agreement and construct alternative connections of the sanitary sewerage facilities in such <br />tributary areas, provided that the Party provides notice to the other Party of its intention to withdraw <br />such tributary areas and construct alternative connections and/or facilities prior to the award of a <br />contract by the other Party for design of the new shared sanitary sewer. The failure to provide such <br />notice prior to the award of the design contract shall constitute a waiver of the right to elect to <br />withdraw. A Party that makes such an election to withdraw shall, as of eighteen (18) months <br />579683.1 4 <br />