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City Of San Marcos <br />Form CoSM- Bond -01 <br />6. In order to account for betterment, the Owner shall provide comparative estimates for <br />(i) all work to be performed, including work attributable to betterment, and (ii) non - <br />betterment work associated only with the replacement of existing Owner Utilities, which <br />estimates are subject to agreement by the City. A betterment credit to the City shall be <br />calculated by subtracting (ii) from (i), which remainder shall be divided by (i), to arrive at <br />the percentage of the work attributable to betterment. The City shall reimburse the <br />Owner that portion of the Owner's costs equal to the approved costs, less the betterment <br />credit. After application of the betterment credit, the City will then apply the credit, if <br />any, for salvage material. <br />7. The City will not be responsible for costs resulting from utility design revisions and <br />relocations necessitated by design changes unless authorized and approved by the City <br />prior to the commencement of the said redesign. <br />8. The Owner may utilize its own employees or may retain such contractor or contractors as <br />necessary to relocate and reconstruct the Owner Utilities through the procedures set forth <br />in Form CSM- Bond -U01 "Statement Covering Contract Work" attached hereto. If Owner <br />utilizes its employees for the relocation and reconstruction work, a Form CSM- Bond -U01 <br />is not required. <br />9. The Owner will not begin on relocation or reconstruction of Owner Utilities until such <br />right -of- way necessary for any sequence thereof is acquired or a right -of -entry <br />acceptable to the City is obtained, it being incumbent upon the Owner to assure that all <br />such installations at all times be within property owned or controlled by the City or <br />owned or controlled by the Owner. <br />10. The City or its designee will, by written notice, authorize the Owner to proceed with the <br />necessary adjustment, removal or relocation, and the Owner agrees to prosecute such <br />work diligently to completion in such manner as will not result in avoidable interference <br />or delay in either the City's Project construction or in the said work. <br />11. Upon receipt of written notice to proceed from the City or its designee, the Owner and <br />Owner's contractors are hereby granted the authority to enter upon the Project right -of- <br />way to proceed with the work. The Owner agrees to act expeditiously to relocate and <br />reconstruct the Owner Utilities necessary for the construction, operation, and <br />maintenance of the Project according to approved final plans, the required specifications, <br />and contract documents, all of which shall have been approved in writing by the City <br />prior to commencement of the work. Upon completion of the relocation and/or <br />reconstruction of the Owner Utilities, the Owner, upon request by the City, will provide <br />the City with as -built plans of the completed Owner Utilities. <br />12. The work undertaken by the Owner or its contractor shall be in accordance with <br />generally- accepted standards and procedures within the industry for such utility <br />construction and reconstruction and in compliance with all applicable ordinances, laws, <br />rules and regulations. <br />CoSM -04 CCWS.doc Page 4 of 7 <br />