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ARTICLE II - RIGHTS-OF-WAY <br />1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all <br />necessary rights of way have been secured. Prior to the advertising for construction of <br />PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE <br />with evidence that all necessary rights-of-way are available for construction purposes or will be <br />available by the time of award of the construction contract. <br />2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein <br />includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides <br />otherwise. <br />(a) Expenditures of capital and support to purchase all real property required for PROJECT free <br />and clear of liens, conflicting easements, obstructions and encumbrances, after crediting <br />PROJECT with the fair market value of any excess property retained and not disposed of by <br />ADMINISTERING AGENCY. <br />(b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real <br />property required for the PROJECT, title free and clear of obstructions and encumbrances <br />affecting PROJECT and the payment, as required by applicable law, of damages to owners of <br />remainder real property not actually taken but injuriously affected by PROJECT. <br />(c) The cost of relocation payments and services provided to owners and occupants pursuant to <br />Government Code sections 7260-7277 when PROJECT displaces an individual, family, <br />business, farm operation or nonprofit organization. <br />(d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is <br />recorded for sale proceeds used to offset PROJECT costs. <br />(e) The cost of all unavoidable utility relocation, protection or removal. <br />(f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation <br />or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility <br />and where the actual generator cannot be identified, and recovery made. <br />3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability <br />that may result in the event the right-of-way for a PROJECT is not clear as certified by <br />ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain <br />hazardous materials requiring treatment or removal to remediate in accordance with Federal <br />and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any <br />costs which arise out of delays to the construction of PROJECT because utility facilities have <br />not been timely removed or relocated, or because rights-of-way were not available to <br />ADMINISTERING AGENCY for the orderly prosecution of PROJECT work. <br />Page of 165