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SECTION 2. DESIGN AND CONSTRUCTION. <br /> A. Lino Lakes is responsible for the design and construction of both the portion of <br /> the Project located within Centerville and the portion of the Project located within <br /> Lino Lakes. Therefore, the parties agree that: <br /> 1) Lino Lakes shall design the Project, administer the construction and <br /> conduct inspections of the construction process. Centerville shall have the <br /> right to inspect, review and comment upon construction of the Project. <br /> Centerville shall have the right to review and approve the final plans and <br /> specifications prior to advertisement for bids. <br /> 2) For purposes of performing its obligations under this Agreement, <br /> Centerville hereby grants to Lino Lakes the right to use the streets, public <br /> ways, and easements of Centerville for purposes of constructing the <br /> Project, including any excavations necessary to perform work incidental to <br /> the performance of this agreement. <br /> 3) Lino Lakes agrees to notify and coordinate with businesses in Centerville <br /> that are located along 21" Avenue as early as practical regarding the <br /> construction schedule for the Project. <br /> 4) Centerville and Lino Lakes will each acquire the necessary right -of -way to <br /> permit the construction of the street extension as well as water mains, <br /> sanitary sewer, storm sewer and storm water ponds. <br /> B. Centerville shall contribute its share of the project as estimated on the attached <br /> Exhibit _B, and may collect its share as a special assessment against benefited <br /> property owners of Centerville. The remaining portion of the project shall be paid <br /> by Lino Lakes who may specially assess all or a portion of its share from <br /> benefiting property owners of Lino Lakes. Each municipality shall be responsible <br /> for the sale of bonds, if any, and levy of special assessments against properties <br /> within their city's boundaries. <br /> C. Each city has the right to terminate this Agreement prior to award of a <br /> construction contract. The terminating party is responsible for all design costs <br /> incurred up to the date of termination. <br /> D. Lino Lakes shall receive from Centerville ninety percent (90 %) of its estimated <br /> share of the project cost within 60 days of award of a construction contract. Prior <br /> to billing this estimate will be updated by Lino Lakes to reflect actual bid prices <br /> as awarded. An updated cost estimate shall be provided to Centerville at the time <br /> of billing. <br /> 2 <br /> 21 <br />