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I $300,000 Trust Fund and Provisions For Liquidated Damges. Although the District has already in principle, agreed to these provisions, they appear to us to be unduly harsh and we would recommend that negotiations be reopened to ameliorate the same. Our reasons are as follows: 1. According to Montgomery, the estimated cost of relocation is only $180,000. 2. Assuming that the $15,000 per year deposit were to run for the full twenty (20) years, the net cost to the District in creating the fund would be from $363,000 (based on a net Interest cost to the District of 2%) to $457,500 (based on a net cost of M ? 3. In addition to paying a cash consideration of $2,500,000, the District is agreeing to expend Dis­trict money (approximately $180,000) for the sole bene­fit of Union Pacific by the relocation of certain lines. Thus, the total cost of the contract to the District is a minimum of $2,680,000 and the total benefit to Union Pacific is $2,800,000 (based upon their liquidated damage figure of $300,000). 8.