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Owner is relocating the Castlewood water line, the City will, for a reasonable period of time that is agreed upon between Property Owner and City, such agreement not to be unreasonably withheld, continue to provide water to Castlewood from City water services at no cost to Property Owner. In addition, City hereby agrees that to the extent the Castlewood waterline is required to be relocated within any portion of the Public Parcel, Property Owner and City shall mutually agree on an appropriate location of the waterline and the Castlewood Water Easement, such agreement not to be unreasonably withheld. 3.16 Offsite Infrastructure Improvements Issuance of Building Permits. In no event shall City condition the issuance of any building permit for the Project on the completion of any offsite infrastructure improvement. Notwithstanding the provisions of the preceding sentence, Property Owner agrees to commence construction of the railroad underpass to provide access from Valley Avenue to Case Avenue at the time of the issuance of the 250'" building permit for a single family detached market rate residential unit; provided, however, if Property Owner has proceeded in good faith in making application for a permit to the State of California Public Utilities Commission ("PUC and/or to obtain permission from the railroad owner (if a private party) to construct the railroad underpass but, notwithstanding Property Owner's good faith efforts, the PUC's processing of Property Owner's application and/or the railroad owner's response to Property Owner is delayed, City shall continue to issue building permits and occupancy certificates so long as Property Owner continues to diligently pursue the PUC permit/railroad owner's permission. Any infrastructure improvements, including, without limitation, any pumps and/or other equipment, constructed or installed as part of the railroad underpass, shall be owned and maintained by City. 3.17 Berm Landscaping and Maintenance. Subject to the provisions of the PUD, Property Owner shall be responsible for landscaping (in accordance with the conceptual landscape plan in the PUD) and maintaining berm areas paralleling the Interstate 680 until the close of escrow of the last single family residence in the area in which such freeway berm is located at which point City shall take over and be responsible for the maintenance of such berm areas. 3.18 San Francisco Easement. The City and County of San Francisco ("San Francisco has expressed an interest in reserving (from its conveyance of the Property to Property Owner) an easement for utility purposes, i.e., for potable and nonpotable water transmission, minor electrical transmission (60 KV or Tess), and communication purposes, paralleling the Interstate 680 (the "San Francisco Easement City hereby agrees that Property Owner may agree to the San Francisco Easement reservation provided (a) San Francisco agrees that Property Owner's payment of all or any portion of the school fees to the PUSD may be given a priority over Property Owner's obligation to pay San Francisco for PUSD school fee credits prior to the payment by Property Owner of any school fees to PUSD and (b) San Francisco agrees to convey a three (3) acre parcel near City's public library (the "Civic Center Parcel to City on terms reasonably acceptable to City. If, for any reason, Property Owner and San Francisco are unable to agree to a satisfactory arrangement regarding the payment of school fees to the PUSD and if City and San Francisco are unable to reach a mutually satisfactory agreement regarding the conveyance of the Civic Center Parcel to City, Property Owner may only agree to the San Francisco Easement reservation if the consideration payable by San 35690849375v14 20 08/25/00