Required Expansion. If the sale of an Additional Purchase would require an expansion of either the Water Treatment Plant, the Upgraded Fairview Pump Station, the Poughkeepsies’ Transmission Mains, the Authority Pump Station or any other part of the Main, to provide all or a portion of such Additional Purchase (a “Required Expansion”), the Owner recognizes that the Board or Authority may condition the sale of such portion of any Additional Purchase upon the Owner paying all costs of that Required Expansion, except as provided below, including but not limited to, administrative, engineering, legal, financing, permitting, environmental reports and assessments and design costs, and the Owner’s payment of any applicable recapture fee provided for in Section IV(A)(3). In that event, the Authority shall provide or secure from the Board an estimate of the same as soon as reasonably practicable. Such notification shall include an estimate of all costs of the Required Expansion and the anticipated construction time for such Required Expansion; provided, that (i) if the City, Town or Board (“Board Expansion”) elects to also expand for their use either the Water Treatment Plant, the Upgraded Fairview Pump Station, or the Transmission Mains at the same time in excess of that required for a Required Expansion or (ii) if the Authority elects to expand any source or facility of the Authority (including the Authority Pump Station or any other part of the Main) (“Authority Expansion”), the costs of the Required Expansion, the Board Expansion and Authority Expansion, including cost overruns and change orders for all the same, shall be shared and paid by the Authority, City, Town, Board and the Owner on the allocated increased design capacity basis elected by each party. Construction contracts for a Required Expansion shall not be let until the Owner has had an opportunity to review the same and has consented to the bid construction price, contingency and related costs for the Required Expansion. If the Owner determines not to proceed at that time with the Required Expansion, the Owner, as soon as reasonably practicable but before the bids must be accepted, shall notify the Authority of the same and shall pay to the Authority the actual costs of engineering, legal, financing, permitting, environmental reports and assessments, design and bidding costs attributable to the Owner’s allocated capacity of the proposed Required Expansion. The Required Expansion will be accomplished between the parties ...
Required Expansion
