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2. ENCROACHMENT AUTHORIZATION. The City hereby approves the <br /> encroachment of the Improvement within its right-of-way easement on the Subject Property subject <br /> to the conditions set forth in this Agreement. Further conditions of encroachment approval are as <br /> follows: <br /> • The City shall have no responsibility to maintain or repair the Improvement located within <br /> the City's right-of-way area. <br /> • The Owners shall own the Improvement and shall be responsible for the maintenance, <br /> repair and/or replacement of the Improvement located within the City's right-of-way area. <br /> • The Improvement located on the Subject Property must not impact or increase water <br /> drainage on the abutting properties or cause any adverse drainage patterns or erosion to <br /> the abutting properties. <br /> • The Owners are fully responsible and liable for any and all damage caused to the <br /> Improvement because of the Improvement being constructed in the City's right-of-way <br /> area. <br /> Further, Owners agree that the Improvement was constructed consistent with all applicable <br /> federal, state and local laws and regulations. <br /> 3. INTEREST IN RIGHT-OF-WAY. Nothing in this Agreement shall be deemed a <br /> waiver or abandonment of the City's interest in the right-of-way. <br /> 4. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to <br /> encroach within the City's right-of-way area, Owners, for themselves,their heirs and assigns,hereby <br /> agree to indemnify and hold the City harmless from all costs and expenses, claims and liability, <br /> including attorney's fees, relating to or arising out of this grant to the Owners of permission to <br /> encroach on the City's right-of-way easement are for the construction, maintenance, use, operation, <br /> and the like of the Improvement. <br /> 5. TERMINATION OF AGREEMENT. If the Improvement interferes with the use, <br /> maintenance or repair of the City's right-of-way and/or utilities within the right-of-way,the property <br /> Owners shall remove the interference at their sole expense. If the property owners fail to maintain <br /> 199882v2 2 <br />