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1. CONTRACTOR agrees to, at its own cost and <br />expense, install and maintain the irrigation <br />system and landscaping within the area shown <br />on Exhibit "A". <br />2. CONTRACTOR agrees to maintain and operate the irrigation <br />system in a manner that prevents water from flooding onto <br />the State Highway and the adjacent CITY Street. <br />3. CONTRACTOR agrees to pay for all utilities, including <br />electrical service and water service, necessary to <br />maintain the irrigation system and landscaping. <br />4. If for any reason, CONTRACTOR in unable to maintain the <br />area in a manner satisfactory to the CITY, CONTRACTOR <br />shall remove the improvements and restore the area to its <br />original pre-existing condition, or to a condition <br />acceptable to the CITY. <br />5. CONTRACTOR agrees to perform all work in accordance with <br />the provisions of the encroachment permit secured by the <br />CITY for the work as indicated in Exhibit "B". <br />6. All activities performed by the CONTRACTOR pursuant to <br />this AGREEMENT shall comply with all applicable federal, <br />state, and local laws and regulations. <br />2 <br />