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WHEREAS, correcting this depression will have serious implications in terms of impact <br />to surrounding land owners and other utilities located in the Kohlman Lane right-of--way, and <br />WHEREAS, both parties to this agreement believe said depression is not likely to inhibit <br />the satisfactory operation of the sanitary sewer line now or in the future, with the possible <br />exception of increased maintenance activities to address the build up of sediments, <br />NOW THEREFORE, the City and Cond•actor agree as follows: <br />1. No corrective action will be required at this time to eliminate the depression in the <br />newly installed sanitary sewer line in the area depicted on Exhibit B. <br />2. Upon written notice by City, Contractor agrees to promptly undertake such work <br />necessary, as determined by the City's engineer, to correct the deficiencies in the depressed <br />portion of the sanitary sewer line and any other portion of the line impacted by the corrections. <br />Said corrective work shall be completed no later than six months from the date of the City's <br />notice. <br />3. Contractor agrees to post a performance and payment bond issued to the City and <br />for the exclusive benefit of the City in the amount of $200,000 to guarantee compliance with this <br />agreement. The term of said bond shall commence one year after completion of the Maplewood <br />project and/or at the end of the standard warrantylbonding period that is required by the <br />Contractor's agreement with the City of Maplewood. Said bond issued to City shall remain in <br />full force and effect for five years and guarantee the reconstruction of the depressed area of <br />sanitary sewer line as depicted nn Exhibit B, including all costs associated reconstruction work <br />including, but not limited to, street restoration, curb and gutter replacement, boulevard and <br />landscaping restoration, driveway replacement, and protection and impacts to other utilrties <br />located in the correction area. <br />4. Contractor acknowledges that the decision to reconstruct the depressed sanitary <br />sewer area shall be based on unacceptable operational characteristics of this portion of the line <br />associated with back-ups, collapse, lack of structural integrity, infiltration, inflow, or• extreme <br />maintenance activities as determined in the City's sole discretion. <br />3 <br />