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* _ 4. Septic Svstem Uo�rade Installation: The design location, construction, installation and materials for septic system upgrade shall be in accordance with plans and specifications to be approved by the City prior to installation (the "Septic Improvements"). 5. Automatic E�ctension and Reconsideration: The Property Owner may request that the City Council reconsider the terms of this agreement if, thirty (30) days prior to the Completion Date, the City Council has made no decision whether municipal sewer will be provided to the neighborhood and property. A. Automatic extension. If the City Council has not by thirry (30) days prior to the Completion Date made a decision whether municipal sewer will be provided to the neighborhood and the property, the Completion Date will be automatically extended to July 31, 1997 (the "Extended Completion Date") upon receipt prior to July 31, 1996 ot a one year extension of the ' �� ^� ��"`"' discussed in item o below. �C--��rr�c� p�os� T �;��. B. Im�act of decision to provide sewer. In the event that the City Counci pnor to the Completion Date (or prior to the Extended Completion Date) makes a decision to provide municipal sewer with an expected sewer construction start within two years of the Completion Date (or Extended Completion Date), the Septic Improvements clause of this agreement shall be declared null and void and the City shall immediately release the performance deposit. However, if the expected sewer construction start is more than two years after the Completion Date (or Extended Completion Date), the City Council shall determine whether or to what extent Septic Improvements shall be required and shall establish a required Completion Date if necessary. C, In the event the City Council prior to the Completion Date (or prior to the Extended Completion Date) determines that municipal sewer will not be provided to the neighborhood or the property in the foreseeable future, the Property Owner shall complete the Septic Improvements by the Completion Date (or Eatended Completion Date) unless granted an extension by the City Council. (, performance Deposit: ror tiie purposes of assu.-ing to u'�e Cit�y that Lhe Septic ?�::provemer.ts will be completed according to the terms of this agreement, the Property Owner has provided to the City at,the time of the execution of this agreement a performance deposit in a form satisfactory to the City providing that the City is able to draw upon such performance deposit in its sole discretion to complete the Septic Improvements if the Property Owner fails to satisfactorily complete the work prior to the Completion Date. The amount of the performance deposit shall not be reduced before substantial completion of the Septic Improvements. The term of the performance deposit shall be a period of one year. City shall provide a release of the performance deposit to Property Owner and the appropriate financial institution upon acceptance of the Septic Improvements. Initials of Property Owner�'� / -N' ✓'L. Initials of City Clerk Page 3 of 6