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Dollars and 00/100 cents ($1,520,000.00) (the "Estimated Project Cost"). City's fair <br />share proportion of the Estimated Project Cost is Four Hundred Ninety Thousand <br />Twenty Seven Dollars and 00/100 cents ($490,027.00). District's fair share proportion <br />of the Estimated Project Cost is One Million Twenty Nine Thousand Nine Hundred <br />Seventy Three Dollars and 00/100 cents ($1,029,973.00). The calculation of the <br />Estimated Project Cost and City's and District's respective fair share proportion of the <br />Estimated Project Cost is set forth in Exhibit "C," attached hereto and incorporated <br />herein by reference. <br />G. The Parties desire to enter into this Agreement to specify the terns pursuant to which <br />City will construct, and District will reimburse City for District's fair share proportionate <br />cost of, the Westminster Avenue Sewer Project. <br />NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises <br />herein contained, it is hereby agreed by and between the City and the District, as follows: <br />AGREEMENT <br />1. Project Construction. <br />1. 1. City shall be responsible, at City's sole cost and expense, for bidding, awarding, and <br />administering a contract for the construction of the Westminster Avenue Sewer Project, <br />in conformance with the Plans and Specifications approved by the District and in <br />accordance with all applicable laws governing construction of public works by either <br />City and/or District, including, but not limited to, laws governing public bidding and the <br />payment of prevailing wages. District shall be responsible for its own Project <br />administration costs, including review of contract change orders, District inspection of <br />the Project and District project coordinator activities. The contractor selected by City to <br />construct the Westminster Avenue Sewer Project shall be hereafter referred to in this <br />Agreement as the "Project Contractor," and the contract between City and the Project <br />Contractor shall hereafter be referred to as the "Project Construction Contract." In the <br />event the projected actual cost of the Westminster Avenue Sewer Project, as reflected in <br />the bid of the lowest responsible bidder to which City intends to award the Project <br />Construction Contract, exceeds the Estimated Project Cost by twenty percent (20%), <br />City shall not award the Project Construction Contract without prior approval of <br />District's Board of Directors. <br />1.2. City shall ensure that the Project Consu uction Contract requires the Project Contractor to <br />provide insurance acceptable to District, to name District and the City of Garden Grove <br />as additional insureds, and to indemnify, defend, and hold harmless District and the City <br />of Garden Grove in a manner approved in writing by District prior to award of the <br />Project Construction Contract. City shall not permit construction of any portion of the <br />Westminster Avenue Sewer Project to commence until evidence of the required <br />insurance and additional insured endorsements have been provided to and approved by <br />District. <br />1 912756.1