PONDEROSA HOMES II REIMBURSEMENT

estimates for constructing the Improvements. The above referenced plans are on file with the Department of Public Works of the City and are incorporated herein by this reference. The Design shall be substantially completed to allow the construction of the Improvement to be started in the fall of 2004. The completion date may be extended due to events beyond the control of the Developer as may be determined in the reasonable judgment of the City. 2. Changes. During the course of design, if changed conditions require an increase in the cost of the Improvements or if any change orders to the Designer or General Contractor are contemplated, Developer shall submit such information and any change orders to the City. City and the Developer shall agree on the scope of work and price of all change orders prior to the approval of any given change order. In order to avoid delay, City agrees to respond to any request for change order approval submitted by Developer within forty eight (48) hours from the date the City receives said request. 3. Reimbursement. City shall reimburse Developer for the Improvements actually designed. City shall also reimburse the Developer for professional fees reasonably incurred for engineers, designer and similar consultants in connection with the Improvements including the conceptual design and other professional services and/or costs as determined and agreed to by the City and Developer, not to exceed $33,700 unless otherwise agreed to by the City. City shall also pay the Developer a management fee of five percent (5%) of the costs of the professional fees. 4. Ownership of Design Work All reports, word data, CADD files, record plans (as-built), and all other documents completed or partially completed by Developer's engineers, designers, and similar consultants in the performance of this Agreement shall become the property of the City. Developer shall ensure that this provision is included in all agreements that it enters into with engineers, designers and similar consultants. 5. Hold Harmless. The Developer shall indemnify, hold harmless and defend the City, its elective and appointive Boards, Commission, officers, agents, and employees, harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims from property damage which may arise from the acts or omissions of the Developer, Designer, or their agents and employees under this Agreement. City does not, and shall not, waive any rights against the Developer which it may have by reason of the aforesaid hold-harmless provisions because of the acceptance by City, or the deposit with City by the Developer, of any of the insurance policies described herein. 6. Insurance. The Developer shall require the Designer to provide the following to the City prior to commencement of work: a. A Certificate of Insurance issued to the City providing proof of Workers' Compensation and Policy Number. b. A Certificate of Insurance showing the amount of General Liability and Property Damage coverage with Insurance coverage of at least the following amounts: