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ARTICLE I - PROJECT ADMINISTRATION <br />1. This AGREEMENT shall have no force or effect with respect to any program project unless <br />and until a project- specific Program Supplement to this AGREEMENT for state funded projects, <br />hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE <br />and ADMINISTERING AGENCY. <br />2. The State approved project-specific allocation notification letter and approved CTC allocation <br />documentation designate the party responsible for implementing PROJECT, type of work, and <br />location of PROJECT for projects requiring CTC allocation by PROJECT component of work. <br />3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the <br />ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated <br />PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have <br />been initially encumbered for PROJECT along with the matching funds to be provided by <br />ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the <br />PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT <br />as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly <br />delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written <br />concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the <br />governing body of ADMINISTERING AGENCY. <br />4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM <br />SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, <br />encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT <br />performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is <br />not returned, unless otherwise agreed by STATE in writing. <br />5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of <br />STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, <br />to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special <br />Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and <br />Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of <br />the specific PROJECT. <br />6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of <br />the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by <br />CTC, for said PROJECT. <br />7. Projects allocated with STATE FUNDS will be administered in accordance with the current <br />CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions <br />published by STATE. <br />8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and <br />requirements for work related to PROJECT, including the California Environmental Quality Act <br />(CEQA). <br />9. ADMINISTERING AGENCY's eligible costs for preliminary engineering work includes all <br />preliminary work directly related to PROJECT up to contract award for construction, including, <br />but not limited to, environmental studies and permits (E&P), <br />Page of 162