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23's <br /> existing main which is approximately one-half mile west of the <br /> intersection of N. C. Highway #751 and U. S. Highway #70 to the <br /> aforementioned service area boundary line. This line con- <br /> struction is hereinafter referred to as "the Project". The water <br /> main shall be sixteen-inch (16") ductile iron water pipe from the <br /> end of the CITY's existing water main to Linden Road and shall be <br /> twelve-inch (12") ductile iron water pipe from Linden Road to the <br /> service area boundary line. The construction of this water main <br /> shall be in accordance with the following conditions; <br /> a. The TOWN will be responsible for engineering, for <br /> acquisition of any rights-of-way and easements, and for <br /> construction by a licensed contractor. <br /> Once construction bids have been received, the TOWN will <br /> pay to the CITY a tap fee equal to the estimated total cost of <br /> the Project based on bids received and including engineering <br /> services, resident inspection, legal and administrative services, <br /> contingencies and all other expenses. It is understood by both <br /> parties that this tap fee will be adjusted later based on the <br /> final actual cost of the Project. <br /> The TOWN will handle all money for payment of the cost <br /> of constructing the water main and all necessary engineering, <br /> legal , accounting and other incidental expenditures associated <br /> with construction and with acquisition of rights-of-way and easements. <br /> Prior to the execution of construction contracts for the <br /> Project, the CITY will pay to the TOWN, as contracting agent, an <br /> amount equal to the estimated total cost of the Project. It is <br /> -3- <br />