| VIII.   	The City and the District agree that this Agreement is in the best interests of the		  	•
<br />			    	City, the District, and the residents and businesses in the L -3 area.  Therefore,
<br />			    	the City and the District hereby agree and endorse this Agreement as being  in
<br />			    	the best interests of their respective constituents.
<br />		     	IX.   	The City and  District hereby agree that each has taken the appropriate steps
<br />			    	necessary to authorize and approve the Agreement stated herein.  Specifically,
<br />			    	the City Council took action at its meeting on  November7,2011	  	and approved
<br />			    	the terms and conditions set forth herein, and has authorized and directed the
<br />			    	City Manager to enter into this final agreement regarding the matters stated
<br />			     	herein.  Similarly, the District Board of Directors has also taken action at its
<br />			     	meeting on			   	,  and approved the terms and conditions set forth
<br />			     	herein and authorized the execution of this final agreement.
<br />				X.   	The City shall indemnify, defend and  hold  harmless the District and its officials,
<br />			     	officers, employees, agents,  and volunteers from and against any and all losses,
<br />			     	liability, claims, suits, actions, damages, and causes of action arising out of any
<br />			     	personal injury, bodily injury,  loss of life, or damage to property, or any violation
<br />			     	of any federal, state, or municipal law or ordinance, to the extent caused, by (a)
<br />			     	the willful misconduct,  negligent violations of law, or negligent acts or omissions
<br />			     	of the City or its officials, officers, employees,  agents and volunteers, or (b) acts
<br />			     	for which they could be held strictly liable.  The foregoing obligation of the City    	'
<br />			     	shall not apply when (1) the injury,  loss of life, damage to property, or violation
<br />			     	of law arises wholly from the negligence or willful misconduct of the District or its
<br />			     	officers, employees,  agents, or volunteers and (2) the actions of the City or its
<br />			     	employees,  subcontractors, or City Council approved and authorized agents
<br />			     	have contributed in no part to the injury, loss of life, damage to property, or
<br />			     	violation of law.  It is understood that the duty of the City to indemnify and hold
<br />			     	harmless includes the duty to defend as set forth in Section 2778 of the
<br />			     	California Civil Code and authorized by Government Code section 895.4.
<br />			     	In addition, the City agrees to indemnify and defend the District against any and
<br />			     	all demands,  losses, liability, claims, suits, actions, damages, causes of action
<br />			     	and customer complaints (together, the "Claims ") arising out of the provision of
<br />			    	free services to L -3 area customers as provided for herein.  The foregoing
<br />			     	obligation of the City will arise only upon City's express written acceptance of
<br />			     	a tender from the District to respond to any such Claims, which shall be City's
<br />			     	express desire for the District to continue to provide services at no cost to L -3
<br />			     	area customers until such obligation is terminated by the Parties by a separate
<br />			    	written amendment to Section  III.  If City does not respond within  15 days to
<br />			     	District's tender or rejects an aforementioned tender,  District shall have no
<br />			     	further obligation to provide services at no cost to the L -3 area customers, and
<br />			     	may charge for services provided from the date tender is rejected.  Upon City
<br />			     	rejection of a tender and simultaneous extinguishment of District obligation to
<br />			     	provide free services to L -3 area customers,  District understands and agrees'
<br />			     	that City's obligation to indemnify and  hold harmless District for any and
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