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AHFP NO. 1318 WHEREAS, CITY, as Lead Agency, has completed the environmental assessments as required by the California Environmental Quality Act of 1970, as amended, by approving a Negative Declaration for PROJECT, a copy of which is on file with COUNTY; and WHEREAS, CITY has filed the Notice of Determination with the County Clerk; and WHEREAS, no additional environmental documents are required for compliance with the California. Environmental Quality Act; and WHEREAS, CITY has reviewed PROJECT for conformance with the requirements of Section 65402 of the California Government Code and applicable local ordinances and CITY has acted as required. NOW, THEREFORE, IT IS AGREED by the parties hereto as follows: 1. The Arterial ,Highway Financing Program (AHFP) Procedure Manual herein referred to shall be and is hereby made a part of this agreement. 2. The Contracting Authority for PROJECT is hereby designated as CITY. 3. The Project Engineer for PROJECT is hereby designated as CITY. 4. The Construction Engineer for PROJECT is hereby designated as CITY. 5. All soils engineering and material and construction testing necessary for PROJECT shall be performed by COUNTY. This shall include preliminary soils investigations, structure foundation investigations, recommendations for structural sections and compaction requirements, and quality control of materials and construction. 6. The work shall be subject at all times to inspection by the authorized representatives of both parties. 7. Funds to be used for PROJECT: a. The estimated cost Pi PROJECT covered by this agreement is: Design Engineering: $ 150,000 Construction Contract 1,505,000 Construction Engineering: 150,000 Total: 11805,000 follows: b. On the basis of the above estimate, PROJECT will be financed as b COUNTY Funds: $ 760,000 CITY Hatching Funds: 760,000 CITY Funds:* 285,000 Total: 1,805,000 *For items not eligible for AHFP participation. c- If upon completion of detailed design, it appears that PROJECT's estimate will exceed the original allocation, the Contracting Authority shall follow the procedures set forth in the AHFP Procedure Manual for Adjustment of Allocation. d. Except as noted in (e) below, final adjustments of PROJECT's costs will be made on the basis of COUNTY fifty percent (50y), CITY fifty percent (509;), on eligible items in the contract up to the maximum COUNTY AHFP allocation. e. COUNTY participation in longitudinal storm drain costs shall not exceed a maximum of twenty-five percent (25%) of the total cost of eligible -2-