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b. Unless approved by the RCWD, Hugo shall limit implementation to those <br />activities defined in the approved work plan. <br />c. Prior to submitting any pay request, Hugo shall provide an accounting of funds <br />expended and work performed under this agreement. <br />2. The RCWD will direct all inquiries and requests about JD2 maintenance to Hugo. Work <br />may extend into the City of Forest Lake. The work, subject to limitations imposed by <br />funding, weather, ditch conditions, and accessibility will include minor maintenance as <br />set forth in the RCWD Watershed Management Plan and in a manner consistent with that <br />previously performed by the RCWD. The RCWD and Hugo will copy each other on all <br />correspondence with third parties concerning JD2 maintenance and will communicate in <br />good faith concerning any maintenance issues that arise. The RCWD will reassume <br />minor maintenance responsibility for that part of any year in which all funds specified in <br />Paragraph 4 have been expended. In no event shall Hugo be obligated to perform any <br />minor maintenance that exceeds the amount of money paid for that purpose under <br />Paragraph 4 or for which there is no funding. <br />Hugo will obtain all applicable permits and approvals, including those of the RCWD, and <br />otherwise meet all applicable legal requirements related to maintenance activities. It is <br />understood that currently no formal permit should need to be secured from the Corps of <br />Engineers, DNR, or RCWD for maintenance activities provided that work is undertaken <br />constitutes minor maintenance. Hugo and the RCWD will cooperate to facilitate <br />programmatic and project -specific concurrence of the Minnesota Department of Natural <br />Resources in maintenance activities. <br />4. The RCWD will reimburse Hugo for reasonable costs associated with undertaking this <br />maintenance within 30 days of Hugo's submission of an invoice/pay request, up to a <br />cumulative total of $40,000 per calendar year over the term of this agreement. The total <br />amount of funding available through the term of this agreement will not exceed $200,000 <br />and at no point shall Hugo request reimbursement for more than the balance that exists in <br />the account. When possible, the RCWD may approve specified expenditures for specified <br />work in advance. Any funds remaining in the account at the end of the calendar year shall <br />be carried over to the next calendar year. At the beginning of each calendar year, the <br />RCWD will add $40,000 to the account balance. The RCWD may transfer additional <br />monies into the account at its sole discretion. The RCWD shall promptly furnish to Hugo <br />any documents or records, such as engineers' reports, necessary in the conduct of the <br />minor maintenance. <br />5. Hugo is authorized to use the ditch authority right-of-way without RCWD warranty, but <br />Hugo's performance of maintenance otherwise is entirely under its own discretion, <br />control, and municipal authority, and Hugo in no respect acts as the agent or <br />representative of the RCWD. This MOA is not to be construed as creating a partnership <br />or joint venture or as a joint powers agreement under Minnesota Statutes §471.59. <br />Hugo shall indemnify, defend, and hold harmless the RCWD, its officers, board <br />members, employees and agents from any and all action, costs, damages and liabilities of <br />2 <br />