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(4) Once all required street vacations are completed, the Additional Parcels shall be merged with the Original Parcel into a single new parcel by means of a lot consolidation process. Developer shall file, process and record the lot consolidation. The lot consolidation shall be completed prior to the issuance of building pen-nits. (5) City shall retain existing utility easements for sewer, water, drainage and maintenance purposes within the newly consolidated parcel as shown on Exhibit 7 attached hereto. Developer shall allow City access to all City utility easements within the former street rights -of -way abandoned for the Project, where necessary as determined by the Public Works Agency. If Developer denies such access to City, then Developer shall hold City harmless against damages and all other claims resulting from the condition of City utilities which City was unable to repair or maintain because of such lack of access. (6) It is understood and agreed that the drainage improvements to be installed by City in the drainage easement shall be storm drains and surface drainage facilities as depicted in Exhibits 9 and 9A attached hereto and incorporated herein by this reference, or as approved by the Public Works Agency. City may, at City's sole cost and expense, install an underground piped drainage system within school property. Once constructed, Developer shall be responsible for maintaining and cleaning the on -site drainage facilities and shall keep the drainage facilities free and clear of all impediments to drainage. (7) City shall, at City's sole cost and expense, relocate the four utility poles, guy wires and associated utility lines located between Berkeley Street and Occidental Street, and between Occidental Street and St. Andrew Place, as shown on Exhibit 10 attached hereto and incorporated herein by this reference. 11.5 Developer's Reimbursement Option. If Developer determines that City's timeline for completion of some or all of the off -site improvements to be completed by City pursuant to this Second Amendment may not result in completion prior to commencement of school operations, then Developer may, at its option, notify City in writing that Developer has elected to take over construction of some or all of such off -site improvements, in which case the following shall apply: (a) In the event Developer elects to undertake construction of some or all the off -site improvements pursuant to this Section 11.5, City shall reimburse Developer for all costs and expenses so incurred by Developer. Developer shall submit progress payment invoices to City for the actual costs of construction. Payment by City shall be within 30 days after receipt of each invoice, subject to City accounting procedures. Final payment shall occur after all off - site improvements being constricted by Developer are completed and accepted by the Executive Director of the Public Works Agency. (b) Bidding Requirements. SMRH:475724784.2 65A;-1 7