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NOW, THEREFORE, the parties agree as follows: <br />TUSTIN Rights and Duties: <br />TUSTIN shall be the lead agency for the work and shall provide all design and <br />construction management. TUSTIN shall be solely responsible for the <br />preparation and award of the contract pursuant to public bid requirements for <br />the construction of the PROJECT, including the portion of the PROJECT that <br />is in SANTA ANA. TUSTIN shall be responsible for the preparation of all <br />legal documents, including the Notice Inviting Bids, Instruction to Bidders, and <br />the related construction contract, surety bonds and insurance certificates. <br />TUSTIN shall be solely responsible for the administration and performance of <br />the contract awarded to the contractor for the construction of the PROJECT. <br />2. Tustin shall pay for all PROJECT design, materials testing, site survey, <br />construction engineering and construction management. <br />3. TUSTIN shall pay its proportionate share of construction cost, as estimated in <br />Recital F and Exhibit "A" of this Agreement. <br />4. In the event the sealed bids submitted by the lowest responsive/responsible <br />bidder for the construction of the PROJECT show that SANTA ANA's portion <br />of the PROJECT costs will exceed the estimated cost by ten percent (10%), <br />TUSTIN shall not award such contract and shall not bind SANTA ANA <br />hereunder without the prior written consent of SANTA ANA. <br />5. TUSTIN shall notify SANTA ANA in writing of any changes, increased costs, <br />and meetings associated with TUSTIN's lead agency responsibilities for the <br />PROJECT. <br />6. Change orders for work within SANTA ANA must receive the written approval <br />of the Executive Director of the Public Works Agency of SANTA ANA prior to <br />implementation, which approval shall not be unreasonably withheld. SANTA <br />ANA shall have a minimum of five (5) working days to review and approve <br />change orders. SANTA ANA shall have inspection authority within SANTA <br />ANA jurisdictional boundaries and shall be notified of the progress of the <br />PROJECT for such purposes. SANTA ANA shall also have the right to enter <br />and inspect within TUSTIN boundaries at all times for the purposes of <br />overseeing TUSTIN lead agency functions. <br />7. TUSTIN shall have the exclusive right of approval of all plans, specifications <br />and cost estimates prepared by consultants for the portion of the PROJECT <br />within the jurisdictional boundaries of TUSTIN. <br />8. TUSTIN shall advertise and award the contract for the PROJECT in <br />accordance with federal, state and local laws. <br />2 <br />55A-4