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H. WHEREAS, State-Local Partnership Program (SLPP) Formula Grant <br />funds have been programmed for the project through the Orange County Transportation <br />Authority (OCTA) in the amount of $175,000 for TUSTIN's share and $73,500 for <br />SANTA ANA's share, totaling $248,500; and <br />1. WHEREAS, the PROJECT is declared categorically exempt from CEQA <br />(Section 15301, Class 1 (c)); <br />NOW, THEREFORE, the parties agree as follows: <br />TUSTIN Rights and Duties: <br />1. TUSTIN shall be the lead agency for the work and shall provide all <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 its proportionate share of all PROJECT design and <br />construction costs, materials testing, site survey, construction engineering, <br />and construction management, as estimated in Recital G and Exhibit "A" of <br />this Agreement. <br />3. TUSTIN shall invoice the California Department of Transportation (Caltrans) <br />for reimbursement of SLPP Formula Grant funds, described in Recital H of <br />this Agreement, including SANTA ANA's share, which shall be paid directly to <br />TUSTIN by Caltrans. <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 pertinent meetings (i.e., pre-construction, site, and final walk through), <br />associated with TUSTIN's lead agency responsibilities for the 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 />2