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<br />CONSTRUCTION AGREEMENT <br />2008 Reconstruction Project <br /> <br />This Agreement is made on , between the City ofRoseville, a <br />Minnesota municipal corporation ("Roseville"), and the City of Arden Hills, a Minnesota <br />municipal corporation ("Arden Hills"). <br /> <br />1. PURPOSE <br /> <br />Roseville and Arden Hills (Collectively the "Cities") have determined that it is in the best <br />interests of the residents of each city to undertake in a cooperative fashion their 2008 <br />Reconstruction Project (the "Project"). The goal of the Cities is to provide for a coordinated cost <br />effective completion of the Project and the associated benefits of economy of scale. The purpose <br />of this agreement is to set forth the terms governing the design and construction of the Project. <br /> <br />2. PROJECT <br /> <br />2.1 The Project shall consist of the facilities identified in Exhibit A hereto, subject to <br />modification as provided herein. <br /> <br />2.2 <br />hereof. <br /> <br />The costs of the Project will be paid by the Cities as provided in Section 5.1 <br /> <br />3. DESIGN <br /> <br />3. I Roseville, will prepare, or have prepared, engineering drawings, specifications <br />and construction plans for the Project. The construction plans will include a cost estimate. The <br />final cost estimate will include all costs associated with the Project as well as a contingency <br />budget for unforeseeable circumstances associated with the construction. Roseville will comply <br />with any requirements of Minnesota law with respect to approvals of such plans and <br />specifications. <br /> <br />3.2 Construction plans, engineering drawings, specifications and cost estimates will <br />be submitted to each city for the approval of each city council. <br /> <br />4.1 CONSTRUCTION <br /> <br />4. I If final construction plans and specifications are approved by each city council, <br />Roseville shall proceed with construction of the Project. Roseville will advertise for bids in <br />accordance with the requirements of the municipal contracting law. <br /> <br />4.2 Prior to awarding construction contracts Roseville will review the bids received <br />with Arden Hills. If the contracts exceed the cost estimates contained in the construction plans <br />(including a contingency budget) previously approved by the Cities, the bids must be approved <br />by each city councilor the project may not proceed. <br />