Sewer and Water Main Extension Agreement - Private Extension of Public Water Main – The Reserve at Blackthorn, LLC

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2. Construction Inspection The Owner has provided the City with Exhibit A, which depicts drawings of the Dedicated Improvements, which the City acknowledges conforms to the City's standards. The Owner shall allow the City to inspect the Dedicated Improvements during construction to ensure conformance to the agreed standards set forth in Exhibit A, in particular with regard to area planning requirements, adequacy of design, and quality of construction. The Owner shall contact the City's Engineering Department at least two (2) business days in advance to arrange for the attendance of a City inspector at key milestones throughout work. Key milestones shall include but not limited to: sanitary sewer taps and water main taps. The Owner agrees to perform any necessary adjustments as reasonably required by the City Engineer (or her designee) in her sole discretion, as a result of such inspections. The failure of Owner to comply with this Section shall be a material breach of this Agreement. 3. Permits It shall be Owner's sole responsibility and expense to obtain any and all permits associated with the construction and installation of the Dedicated Improvements. 4. Performance Bond Concurrently upon the execution of this Agreement or within seven (7) days thereof, Owner shall provide the City with a performance bond for an amount equal to one hundred twenty—five percent (125%) of the construction cost covering all work performed or to be performed pursuant to this Agreement. Owner's failure to provide the performance bond as prescribed herein shall cause this Agreement to be immediately terminated and of no effect, without the requirement of