Approving an Interlock Agreement the City South Bend Public Transportation Corp and Appropriating $972,500.00 Compressed National Gas Fueling Facility Project

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2. TRANSPO agrees to provide the City with monthly progress reports regarding the design, development and construction of the facility. TRANSPO also agrees to make facility available during all stages of design, development and construction for inspection by the City, the City's designated officials or representatives, during normal business hours. B. During the final design and construction of the improvements, TRANSPO shall submit documentation to support its invoices consisting of project expense reports from TRANSPO financial system and invoices from any contractors and consultants documenting direct costs incurred by TRANSPO on this Project. C. Within thirty (30) days of its approval of an invoice from TRANSPO, the City shall reimburse TRANSPO for all reimbursable project costs. SECTION 5. GENERAL DURATION AND INITIAL OPERATIONAL AGREEMENT A. The City and TRANSPO enter into this Agreement to provide the initial framework for the allocation and distribution of any and all profits that might be generated from the sale of compressed natural gas at the facility to third parties. The City and TRANSPO agree that within a reasonably prompt time after the facility is constructed and ready for operation they will negotiate the terms of a separate agreement that sets forth in greater detail the parties' respective responsibilities concerning the operation and management structure of the facility; the specifics concerning the operation of the facility; and the allocation of profits from the facilitiy's operation. It is the parties' intent that the terms of their Agreement remain and endure for as long as the compressed natural gas facility is operated for its intended purpose of selling and distributing compressed natural gas. B. Initially and subject to a more formal agreement as set forth above, the City and TRANSPO agree that the parties shall contribute evenly (50% to each party) to the costs of the operation of the facility. C. The City and TRANSPO agree that TRANSPO shall have the ability, after consultation with the City, to engage a third party entity experienced with operation of CNG facilities to operate the fueling station. The costs of engaging the third -parry to operate the facility shall be split evenly (50% to each party) between the parties. D. The parties shall split evenly (50% to each party) any profits the fueling facility generates. Prior to the distribution of any profits, the parties agree that TRANSPO shall set aside an agreed amount of the proceeds from every unit of gas sold into a dedicated maintenance fund that will be used to maintain the facility.