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4. If PROJECT is not on STATE-owned right of way, PROJECT shall be designed <br />and constructed in accordance with Chapter 1000, Bikeway Planning and Design of the <br />Highway Design Manual that describes minimum statewide design standards for <br />bikeways and roads where bicycle travel is permitted and the California Manual on <br />Uniform Traffic Control Devices that describes the uniform standards and specifications <br />for all official traffic control devices. <br />5. If PROJECT involves work within or partially within STATE-owned right of <br />way, that PROJECT shall also be subject to compliance with the policies, procedures and <br />standards of the STATE Project Development Procedures Manual, Highway Design <br />Manual, and California Manual on Uniform Traffic Control Devices and where <br />appropriate, an executed cooperative agreement between STATE and LOCAL AGENCY <br />that outlines the PROJECT responsibilities and respective obligations of the PARTIES. <br />LOCAL AGENCY and its contractors shall each obtain an encroachment permit through <br />STATE prior to commencing any work within STATE right of way or work which <br />affects STATE facilities. <br />ARTICLE III - Engineering <br />1. LOCAL AGENCY eligible costs for preliminary engineering work includes all <br />preliminary work directly related to PROJECT up to contract award for construction, <br />including, but not limited to, preliminary surveys and reports, laboratory work, soil <br />investigations, the preparation of plans, specifications and estimates (PS&E), advertising <br />for bids, awarding of a contract and project development contract administration. <br />2. LOCAL AGENCY eligible costs for construction engineering includes actual <br />inspection and supervision of PROJECT construction work; construction staking; <br />laboratory and field testing; and the preparation and processing of field reports, records, <br />estimates, final reports, and allowable expenses of employees/consultants engaged in <br />such activities. <br />3. Preliminary and construction engineering costs included in the estimate contained <br />in Exhibit A are eligible project costs. STATE reimbursement to LOCAL AGENCY will <br />be on the basis of the actual cost thereof to LOCAL AGENCY including compensation <br />and expense of personnel working on PROJECT, required materials, and automotive <br />expense provided, however, LOCAL AGENCY shall contribute its general <br />administrative and overhead expense. <br />4. LOCAL AGENCY employees or its subcontractor engineering consultant shall be <br />responsible for all PROJECT engineering work. <br />5. LOCAL AGENCY shall not proceed with final design of PROJECT until final <br />environmental approval of PROJECT. Final design entails the design work necessary to <br />complete the PS&E and other work necessary for a construction contract but not required <br />earlier for environmental clearance of that PROJECT. <br />4