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H. WHEREAS, the total PROJECT construction cost plus contingency for <br />SANTA ANA does not exceed the total amount of $35,000 (rounded); and, <br />I. WHEREAS, the PROJECT is declared categorically exempt from CEQA <br />(Section 15301, Class 1 (c)). <br />NOW, THEREFORE, the parties agree as follows: <br />A. COSTA MESA Rights and Duties: <br />1. COSTA MESA shall be the lead agency for the design and construction work <br />and shall provide all construction management. COSTA MESA shall be <br />solely responsible for the administration and performance of the contract <br />awarded to the contractor for the construction of the PROJECT. <br />2. COSTA MESA shall pay for all PROJECT design, materials testing, site <br />survey, construction engineering and construction management. <br />3. COSTA MESA shall pay its proportionate share of construction cost, which is <br />estimated in Exhibit "B" of this Agreement. <br />4. COSTA MESA shall notify SANTA ANA in writing of any changes, increased <br />costs, and meetings associated with COSTA MESA's lead agency <br />responsibilities for the PROJECT. <br />5. 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 COSTA MESA boundaries at all times for the purposes of <br />overseeing COSTA MESA lead agency functions. <br />6. COSTA MESA shall provide SANTA ANA final record drawings for the <br />PROJECT within 60 days of the completion and acceptance of construction. <br />B. SANTA ANA Rights and Duties: <br />1. SANTA ANA shall issue a no fee permit for work within SANTA ANA. <br />Contractor shall be required to obtain a SANTA ANA business license prior to <br />starting work. <br />2. All progress payments for the PROJECT shall be reviewed by SANTA ANA. <br />If SANTA ANA contests the progress payment, SANTA ANA shall request <br />withholding of the payment within five (5) business days of receipt of such <br />2 <br />25E -6 <br />