Common use of Reallocation of Cost Savings Clause in Contracts

Reallocation of Cost Savings. Company shall, in each Certification Application or with each invoice submitted, identify the specific line item assigned within the Redevelopment Project Cost Budget as to each Reimbursable Project Cost for which certification or payment is requested. If, after completion of a Project Improvement in the order listed on Exhibit C and after the issuance of a Certificate of Completion and Compliance for said Project Improvement, or portion thereof, there have been cost savings in the amount expended, which does not exceed ten percent (10%) of the budgeted amount for that line item, with respect to Company Project Costs, then such excess reimbursable amounts shall be allocated to help pay for the next Project Improvement line item on the list on Exhibit C that has not been funded from funds within the Special Allocation Fund. For example, and for illustration purposes only, if Company completes installation of the backflow preventer at a cost savings, Company can use the money from the cost savings to pay overruns in the next Project Improvement line item which is roof replacement and structural reinforcement. The payment of cost overruns is equal to the amount of the cost savings. Once Project Improvement line items 1-4 are completed, cost savings can be used to pay for cost overruns in Project Improvement line items 5-7 (starting with item 5 – front marquee), subject to Section 21. If, however, the cost savings amount exceeds ten percent (10%) of the budgeted amount for that line item, Company shall provide the City with documentation showing the reason for the cost savings as well as documentation showing cost overruns in other Company Cost Category the Company wishes to use the cost savings for. The City Administrator, or his designee, shall review and determine if such costs savings above the ten percent (10%) limit can be used to fund cost overruns in other Company Cost Category. Should the City Administrator, or his designee, disapprove of Company's request, then Company may appeal its request to the City Council, which shall upon Company's request hold a hearing at which Company may present new and/or additional evidence.

Reallocation of Cost Savings. Company shall, in each Certification Application or with each invoice submitted, identify the specific line item assigned within the Redevelopment Project Cost Budget as to each Reimbursable Project Cost for which certification or payment is requested. If, after completion of a Project Improvement in the order listed on Exhibit C and after the issuance of a Certificate of Completion and Compliance for said Project Improvementthe Redevelopment Project, or portion thereof, there have been cost savings in the amount expended, which does not exceed ten percent (10%) of the budgeted amount for that line item, with respect to Company any specific Project CostsImprovement line item, then such excess reimbursable amounts shall be allocated to help pay for the next Project Improvement a separate line item on the list on Exhibit C to fund cost overruns that has have not been funded from funds within the Special Allocation Fund. For example, and for illustration purposes only, if Company completes installation of the backflow preventer exterior repairs and renovation at a cost savings, Company can use the money from the cost savings Cost Savings Category to pay overruns in the next Project Improvement line item which is roof replacement and structural reinforcement. The payment of cost overruns is electrical work equal to the amount of the cost savings. Once Company shall be entitled to transfer amounts between Project Improvement line items 1-4 are completeditems, cost savings can be used so long as Company does not (a) exceed the reimbursement caps set forth in Section 20.B(1) hereof; or (b) transfer to pay for cost overruns in Project Improvement line items 5-7 (starting with item 5 – front marquee), subject to Section 21that are not approved as Reimbursable Project Costs. If, however, the cost savings amount exceeds ten percent (10%) of the budgeted amount for that line item, Company shall provide the City with documentation showing the reason for the cost savings as well as documentation showing cost overruns in other Company Cost Category the Company wishes to use the cost savings for. The City Administrator, or his designee, shall review and determine if such costs savings above the ten percent (10%) limit can be used to fund cost overruns in other Company Cost Category. Should the City Administrator, or his designee, disapprove of Company's request, then Company may appeal its request to the City Council, which shall upon Company's request hold a hearing at which Company may present new and/or additional evidence.