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3. Arden Hills appoints Roseville as its agent to obtain bids,enter into a contract for the design and construction of the work, and supervise the work performed on the Project for compliance with the Project construction documents and this Agreement. 4. The scope and location of the Project is reflected in Exhibit A. II. Construction Documents 1. Roseville will prepare the necessary detailed construction documents for the Project ("Project Construction Documents"). The Project Construction Documents will contain plans and specifications, a schedule for construction of the Project suitable for use by proposed contractors in the preparation of their bids, and a cost estimate. The cost estimate will include all anticipated costs of the Project and a contingency budget. The Project Construction Documents will be prepared using the most current industry standards and practices for watermains. 2. Final construction plans,engineering drawings,specifications and cost estimates,including the cost for each City, will be submitted to the Arden Hills City Engineer for approval prior to bidding. The Arden Hills City Engineer or their representative must approve all Project Construction Documents before the Project Construction Documents are released for bid. III. Ownership of Watermain 1. At the conclusion of the Project, Roseville will own the meter serving the 16-inch watermain and the watermain and related infrastructure from and including the valve on the north leg of the intersection of Hamline Avenue and Glenhill Road to the south, as depicted on Exhibit B. 2. At the conclusion of the Project, Arden Hills will own the watermain and related infrastructure from the valve on the north leg of the intersection of Hamline Avenue and Glenhiill Road to the north, as depicted on Exhibit B. IV. Procedure for Acceptance of Bids 1. Roseville will advertise for bids for the work and construction of the Project, receive and open bids and may, subject to Arden Hills's acceptance of the bid submitted, enter into a construction contract with the successful bidder in accordance with applicable law. After opening the bids, Roseville will give Arden Hills a written tabulation of the bids with Roseville's recommendation for selection of the lowest responsible bidder. 2. Acceptance or Rejection of Project Bid Amount. a. If the bid is less than 120% of the construction cost estimate in the final Project Construction Documents (excluding the contingency and contract administration costs), Roseville will accept the bid for the Project. 2 RS 160\1\900023.v1