2019.01.07 CC Packet - Laserfiche WebLink

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E. The Decommissioning Plan requires the Project Company to fund One Hundred Thirty -Four Thousand Dollars ($134,267.00) (the "Decommissioning Fund Amount") to provide financial assurance that there will be sufficient funds available to the City for the System Removal in the event the Project Comply fails to comply with the Decommissioning Plan. F. The purpose of this Agreement is to establish the terms and conditions of the Decommissioning Fund Amount, as contemplated by the terms of Decommissioning Plan, into which Project Company shall deposit the financial assurance that the System Removal Costs will be available at the time the Solar Garden is decommissioned which account shall be held and disbursed by the City in accordance with the terms hereof. G. This Agreement controls how the funds in the Decommissioning Fund shall be disposed of, retained, or disbursed by the City. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by each party, and intending to be legally bound, the Parties agree to enter into this Decommissioning Fund Agreement, as follows: 1. Incorporation of Recitals. The foregoing recitals are incorporated herein as though fully set forth in this Agreement. Any capitalized terms used herein are made with reference to the definitions set forth in the Interim Use Permit and the Decommissioning Plan. 2. DecommissioningFunds. unds. As of the issuance of the building and electrical permits for the installation, construction and operation of the Project Company Property, Project Company shall deposit Decommissioning Fund Amount identified on Exhibit A hereto which account shall be maintained as a segregated Decommissioning Fund Escrowline item in the accounting records. 3. Release of Proceeds from Decommissioning. The City shall release funds from the Decommissioning Fund Escrow as follows: a) Funds to the City. The funds contained in the Decommissioning Fund Escrow shall be released to the City for the purpose of funding the System Removal by the City in the event either of the following shall occur: (i) the Project Company ceases operation of the Solar Garden for twelve (12) consecutive months or abandons the Solar Garden during the term of the Interim Use Permit, or (ii) the Project Company fails to remove the Solar Garden in compliance with the Interim Use Permit upon expiration of the term of the Interim Use Permit. In the event the City sells components of the Solar Garden for Salvage Value, as that term is defined in the Decommissioning Plan, the money owing to the City from the Decommissioning Fund Account shall be reduced by the Salvage Value received by the City and the 2