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District Agreement No. 12- If existing public and/or private utilities interfere with the congtruction of the PROJECT, CITY shall make all necessary arrangements with the owners of such utilities for their protection, relocation or removal in accordance with CITY's policies and procedures regarding such protection, relocation or removal. The costs of protection, relocation or removal shall be apportioned between the owner of the utility facility and CITY. Any changes to PROJECT, before, during or after PROJECT acquisition and/or construction, that does not comply with or is in conflict with the TEA program requirements may result in CITY being required to reimburse STATE the entire amount of TEA funds contributed to the project or the value of the TEA fund contribution, based upon the fair market value of the acquisition and/or construction, at the time the confl/ct and/or non-compliance is determined, whichever is greater. Upon completion and acceptance of the construction contract for PROJECT by CITY, to the satisfaction of the STATE representative, CITY will maintain PROJECT in perpetuity, at its own cost and expense. Any hazardous material or contamination of an HM-1 category found within the local road right of way during investigative studies requiring the same defined remedy or remedial action shall be the responsibility of CITY. For the purpose of this Agreement, hazardous material or contamination of HM-1 category is defined as that level or type of contamination ~vhich State or Federal regulatory control agencies having jurisdiction have determined must be remediated by reason of its mere discovery, regardless of whether it is disturbed by PROJECT or not. If CITY decides to not proceed with PROJECT, CITY shall not sign the HM-1 manifest. Nothing in this provisions of this Agreement is intended to create duties or obligations to or rights in third parties to this Agreement or affect the legal liability of either party to the Agreement by imposing any standard of care with respect to the maintenance of State highways different from the standard of care imposed by law. Neither STATE nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, under this Agreement. It is understood and agreed that, pursuant to Government Code Section 895.4, CITY shall fully defend, indimnify and save harmless STATE and all its officers and employees from all claims, suits or actions of every name, kind and description brought for or on acc'~unt of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, under this Agreement. 10. Neithe/' CITY nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by STATE under or in connection with any work, CITY under this Agreement. It is understood and agreed that, pursuant to Government Code Section 895.4, STATE ahall fully defend, indemnify and save harmless CITY and all its officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by STATE under or in connection with any ~vork, under this Agreement. Page 5 of 8 6/18/2003, 11:33 AM