PACIFIC GAS AND ELECTRIC - UTILITY AGREEMENT

Utility Agreement No. 789.3 IV. PAYMENT FOR WORK The CITY shall pay its share of the actual cost of the herein described work within 90 days after receipt of OWNER's itemized bill in quintuplicate, signed by a responsible official of OWNER's organization, compiled on the basis of the actual cost and expense incurred and charged or allocated to said work in accordance with the uniform system of accounts prescribed for OWNER by the California Public Utilities Commission. It is understood and agreed that the CITY will not pay for any betterment or increase in capacity of OWNER's facilities in the new location and that OWNER shall give credit to the CITY for all accrued depreciation of the replaced facilities and for the salvage value of materials or parts salvaged and retained or sold by OWNER. At the election of the OWNER, progress bills for costs incurred may be submitted not to exceed OWNER's recorded costs as of a specific date less estimated credits applicable to completed work where the recorded costs are sufficient to warrant such billing. The final billing shall be in the form of an itemized statement of the total costs charged to the account, less the credits provided for in the agreement, and less any amounts covered by progress billings. Detailed records from which the billing is compiled shall be retained by the OWNER for a period of four years from the date of final bill and will be available for verification by CITY, State, and Federal auditors. V. GENERAL CONDITIONS All costs accrued by OWNER as a result of CITY's request to prospect, review, study, design, and/or prepare plans, specifications and estimates for the project associated with this Agreement may be billed pursuant to the terms and conditions of this Agreement. If CITY's project which precipitated this Agreement is canceled or modified so as to eliminate the feasibility work by OWNER, CITY shall notify OWNER in writing and CITY reserves the right to terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement. OWNER shall submit a Notice of Completion to the CITY's Utility Engineer within 30 days of completion of the work described herein.