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written notice by the City of the need for the Contingency Payment. <br />Use of the Contingency Payment is to address unforeseen subsurface <br />conditions, including but not limited to unsuitable or unstable sub- <br />base material discovered during grinding and overlay operations. Use <br />of these funds shall be limited to corrective measures such as <br />excavation, replacement, stabilization, or other remedial work <br />necessary to ensure structural integrity and compliance with project <br />specifications. <br />2.2. City Responsibilities: <br />The City will be responsible for completing, or causing to be <br />completed, the work described in Attachment B ("Work") and all <br />associated attachments, including design, permitting, and <br />construction of Macadam Rd S asphalt overlay. <br />3. Dispute Resolution. <br />3.1 The Parties agree to negotiate in good faith to resolve any disputes arising , <br />under this Agreement. The Parties shall designate representatives for purposes <br />of managing this Agreement and the dispute resolution process under this <br />Section 3. The Parties' Agreement administrators are the persons identified in <br />Section 8 to receive notice. Except as otherwise provided in this Agreement, <br />the Parties shall use the following dispute resolution process: <br />Step One: The Parties' Agreement administrators shall confer and attempt to <br />resolve the dispute within ten (10) business days of written notification <br />by any Party. <br />Step Two: If the Agreement administrators are unable to resolve the dispute <br />within ten (10) business days, any Party may refer the dispute to the <br />District Director or designee and the superior to the contract <br />administrator for the City. <br />3.2 No Party may seek relief in a court of law until and unless the two-step <br />process in Paragraph 3.1 is completed in good faith. <br />3.3 If the Parties cannot resolve the dispute using the process in Section 3.1, the <br />Parties may, by agreement, submit the matter to non -binding mediation. The <br />Parties shall share equally in the cost of the mediation. If additional parties <br />participate in the mediation then each participant shall pay a share of the cost <br />of the mediation, such share to be calculated by dividing the total cost of the <br />mediation by the number of parties participating. Mediation shall not be a <br />prerequisite to litigation. <br />2 <br />47 <br />