Common use of Demand Deposit Requirement; Depreciation Reserve Credit Clause in Contracts

Demand Deposit Requirement; Depreciation Reserve Credit. (a) Where a PAL requires DOT-provided Services, the PAL will specify Municipality’s proportionate share of the cost of the DOT-provided Services. The DOT will bill the Municipality the amount of the Municipality’s proportionate share of such costs in a Demand Deposit, and the Municipality shall forward to the DOT that amount in accordance with the PAL. The DOT is not required to perform the DOT-provided Services until the Municipality pays the Demand Deposit in full. (b) Where the Construction Project requires replacement of a Municipality-owned utility facility, the Municipality shall deposit with the DOT, upon demand, the sum set forth in the PAL for the Depreciation Reserve Credit of the Municipality-owned utility facility being replaced and the value of any materials salvaged from the existing facility. The Depreciation Reserve Credit will be calculated in accordance with the Public Service Facility Policy and Procedures for Highways in Connecticut (2008), as may be revised.