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8A Page 13 (d) It is understood and agreed by the parties hereto that the charge imposed pursuant to this paragraph shall be separate from, and in addition to, any other fees or costs presently in effect related to subdivision and/or development, including, but not limited to, building permit fees, application fees for various govenunental approvals, wastewater treatment capacity fees, water/recycled water supply fees, and charges imposed as conditions upon such approvals; provided, however, that the charges imposed herein shall be in lieu of any other fees, costs or impositions for the purpose of financing the construction of those facilities referred to in paragraph 3 above. (e) The obligations imposed by this Agreement, including but not limited to the obligations imposed by this paragraph, shall be considered covenants running with the Redwood Shores Property in accordance with provisions of Section 1460, et seq., of the California Civil Code and shall be binding upon all successive owners of such lands, during the term of this Agreement, as provided in Section 65868.5 of the California Government Code. Upon execution hereof, City shall cause this Agreement to be recorded in the Office of the County Recorder of San Mateo County. Subsequent adjustments to the Rate Schedule shall also be recorded. 7. Construction of the Facilities. (a) Subject to the third sentence of this Section 7(a), either Keech or, subject to the further agreement of the parties hereto described in paragraph 8 below, District, shall construct or cause to be constructed each of the Facilities in accordance with the schedules and descriptions set forth in Exhibit A, as such may be amended from time to time. The obligations described in the aforementioned schedules and descriptions shall be reviewed on a quarterly basis in accordance with paragraph 8 below, by the parties hereto during the term of this Agreement, and may be adjusted at such time by mutual consent of the parties. Anything contained in this Agreement to the contrary notwithstanding, the City and the District acknowledge and agree that Keech has no obligation of any nature whatsoever to construct any Facilities unless Keech, in its sole and absolute discretion, elects to do so or unless Keech (or its successor or assign) elects to develop Area H and obtain building pennits for such development. (b) Each party shall have the right to review all plans and specifications prior to bidding for the construction to ensure compliance with the intent of this Agreement. (c) Construction of the Facilities shall be perfonned in accordance with the plans and specifications therefor and in a manner satisfactory to the City's Director of Public Works. It is understood that Facilities, if any, constructed by Keech must be approved by the City prior to their acceptance for maintenance as public facilities. (d) The party responsible for construction of a Facility may, at its option, contract for engineering, architectural, and other technical services to aid in the preparation and administration of the construction projects. Any and all work connected with any Facility may be perfonned by the party's own employees. (e) Pursuant to the provisions of paragraph 8 below, the City will prepare an annual cost estimate for the construction of each Facility scheduled for construction in the KP A TTON :mds:RSP .4345\Agreement. DOC F:Atty/ Agr/ AmendGID64.8 071003 5 -