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District Agreement No. 530 <br />12. Upon completion of work under this Agreement, CITY will assume maintenance and <br />the expense thereof for any part of PROJECT located outside of the current State <br />highway right of way until acceptance of any such part of PROJECT into the State <br />highway system by STATE, approval by the Federal Highway Administration, if re- <br />quired, and conveyance of acceptable title to STATE. <br />SECTION III <br />IT IS MUTUALLY AGREED: <br />1. STATE's contractual obligations are subject to State Budget Act authority, the <br />appropriation of resources by the Legislature, and the allocation of funds by the <br />California Transportation Commission. <br />2. Should any portion of PROJECT be financed with Federal funds or State gas tax <br />funds, all applicable laws, rules, and policies relating to the use of such funds shall <br />apply notwithstanding any other provision of this Agreement to the contrary. <br />3. STATE's goal for the utilization of Disabled Veteran Business Enterprise (DVBE) will <br />be included in the construction contract for PROJECT. The contract goal will be <br />based on a technical analysis of contract items and certified DVBE subcontractors in <br />the area. STATE will award the construction contract to the lowest responsible bidder <br />who meets the goals or who made, in the sole judgment of STATE, a good faith effort <br />to do so. <br />4. STATE shall not advertise for bids for a contract to construct PROJECT until after <br />this Agreement is fully executed and CITY delivers to STATE control and/or <br />possession to any required new rights of way, free and clear of all encumbrances <br />detrimental to STATE's present and future uses at a time of CITY certification of <br />rights of way ready for construction. Acceptance of said title by STATE is subject to a <br />review of a Policy of Title Insurance in the name of the State of California to be <br />provided and paid by CITY. <br />5. Prior to advertising for bids for the construction contract for PROJECT, CITY may <br />terminate this Agreement in writing, provided that CITY pays STATE for all already <br />incurred and all unavoidable PROJECT costs related to termination of PROJECT <br />incurred by STATE under the terms of this Agreement. <br />6. If, upon opening of bids for the construction contract for PROJECT, the lowest <br />responsible bid is not more than ten percent (10%) over the Engineer's Estimate, <br />STATE and CITY may conduct a joint review of the bids immediately following <br />opening of bids and prior to submittal of STATE's District 12 letter of <br />recommendation to award to STATE's Office Engineer in Sacramento, if so requested <br />by CITY. After the joint review, and within the time allowed for award, STATE may <br />then award the construction contract for PROJECT. <br />Revised June 27, 2005 edition 5 <br />