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Subject to the terms and conditions contained herein, the County hereby grants to the <br />City a license to construct, maintain, and operate the New City Trail on County park property as <br />indicated in Exhibit A. <br />III. CONSTRUCTION AND. MAINTENANCE OF TRAIL SEGMENTS <br />The City shall, at its sole cost and expense, be responsible for the cost of construction of <br />the New City Trail and for any and all maintenance and repair of the New City Trail and Existing <br />City Trail. <br />IV. INSURANCE. <br />Prior to the construction of the New City Trail, the City and/or its contractor shall procure <br />and maintain in full force and effect during the term of the construction and for a period of ore <br />.year thereafter, insurance coverage for.:injurles to persons or damages to property which may <br />arise from, -or in connection' with the performahce of the work by the City and/or the City's _ <br />contractors,their agents, representatives, or employees. The insurance coverage shall satisfy <br />the requirements set forth in Exhibit B, which is attached hereto and incorporated herein.. <br />V. PERFORMANCE AND PAYMENT BONDS <br />Prior to the beginning of construction of the New City Trail, the City and/or its contractors <br />shall furnish bonds covering the faithful performance of the agreement between the City and/or <br />1 its contractor and the payment of all obligations arising thereunder.- The bonds shall be written <br />in the form of Performance Bond and Labor and Material Payment Bond, AIA Document A311, <br />February 1970 Edition, or Performance Bond and Labor and Material Payment Bond, AIA <br />Document A312, December 1984 Edition. <br />The bonds shall be written with sudh sureties secured through the City or the City's <br />contractor's usual resources as may be agreeable to the parties. In addition, the sureties shall <br />be authorized to conduct surety business ih the state in which the project is located, and the <br />sureties and any reinsuring companies shall be listed in the current Department of the Treasury <br />Circular No. 570 with an underwriting limitation equal.to or greater than the penal sum of the <br />bonds to be furnished. <br />Vi. INDEMNIFICATION <br />The City shall indemnify, defend, save, and hold harmless the County, its officers, <br />commissioners, employees, servants, and agents for any. claims or suit made by any third party <br />against the County based upon any use or activities occurring on or about the Existing City Trail <br />and/or New City Trail, including but not limited to any claim and/or damages arising from or <br />related to construction and/or maintenance thereof. <br />This indemnification shall not apply to any negligent acts or omissions by the County, its <br />officer, commissioners, employees, servants, and agents. <br />-2- <br />