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2. TRANSPO agrees to provide the City with monthly progress reports regarding the <br />design, development and construction of the facility. TRANSPO also agrees to make <br />facility available during all stages of design, development and construction for <br />inspection by the City, the City's designated officials or representatives, during <br />normal business hours. <br />B. During the final design and construction of the improvements, TRANSPO shall <br />submit documentation to support its invoices consisting of project expense reports from <br />TRANSPO financial system and invoices from any contractors and consultants documenting <br />direct costs incurred by TRANSPO on this Project. <br />C. Within thirty (30) days of its approval of an invoice from TRANSPO, the City <br />shall reimburse TRANSPO for all reimbursable project costs. <br />SECTION 5. GENERAL DURATION AND INITIAL OPERATIONAL <br />AGREEMENT <br />A. The City and TRANSPO enter into this Agreement to provide the initial <br />framework for the allocation and distribution of any and all profits that might be generated from <br />the sale of compressed natural gas at the facility to third parties. The City and TRANSPO agree <br />that within a reasonably prompt time after the facility is constructed and ready for operation they <br />will negotiate the terms of a separate agreement that sets forth in greater detail the parties' <br />respective responsibilities concerning the operation and management structure of the facility; the <br />specifics concerning the operation of the facility; and the allocation of profits from the facilitiy's <br />operation. It is the parties' intent that the terms of their Agreement remain and endure for as <br />long as the compressed natural gas facility is operated for its intended purpose of selling and <br />distributing compressed natural gas. <br />B. Initially and subject to a more formal agreement as set forth above, the City and <br />TRANSPO agree that the parties shall contribute evenly (50% to each party) to the costs of the <br />operation of the facility. <br />C. The City and TRANSPO agree that TRANSPO shall have the ability, after <br />consultation with the City, to engage a third party entity experienced with operation of CNG <br />facilities to operate the fueling station. The costs of engaging the third -party to operate the <br />facility shall be split evenly (50% to each party) between the parties. <br />D. The parties shall split evenly (50% to each party) any profits the fueling facility <br />generates. Prior to the distribution of any profits, the parties agree that TRANSPO shall set aside <br />an agreed amount of the proceeds from every unit of gas sold into a dedicated maintenance fund <br />that will be used to maintain the facility. <br />F1 <br />