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1. CLAIMS. The City will pair any and all lawful c1alms arising out of or incidental to the performance of the Project(s) work. The City acknowledges that Mn/DOT is acting only as the City's agent for receipt and disbursement of federal funds, and not as a principal or co- principal with respect to the P roa ec t(s ). In all events, the City will indemnify Mn/DOT and hold Mn/DOT harmless from any claims arising out of the Project(s). [L DUTIES OF Mn/DOT. A. ACCEPTANCE. Mn/DOT accepts designation as Agent of the City for the receipt and disbursement o f federal funds and will act in accordance herewith. B _ PROJECT ACTIVITIES. 1. Mn/DOT will make the necessary requests to the FH wA for authorization to use federal funds for the Project(s), and for reimbursement of eligible costs pursuant to the terms of this agreement. 2. MnIDOT will provide to the City copies of the required Federal-aid clauses to be included in the bid solicitation and will provide the required Federal -aid provisions to be included in the Proposal for Highway Construction. 3. Mn/DOT will review and certify the DBE participation and notify the City when certification is complete. 4. Mn/DOT will provide the required labor postings. C. PAYMENTS. 1 Mn/DOT will receive the federal funds to be paid by the FH A for the Project(s), pursuant to Minnesota Statutes § 161.36, Subdivision 2. 2. Mn/DOT will reimburse the City, from said federal funds made available to each Project, for each partial payment request, subject to the availability and limits o f those funds_ 3. Upon completion of the Project(s), Mn/DOT will perform a final inspection and verify the federal and state eligibility of all the payment requests. If the Project is found to have been completed in accordance with the plans and specifications, Mn/DOT will promptly release any remaining federal funds due the City for the Project(s). 4. In the event Mn/DOT does not obtain funding from the Minnesota Legislature or other funding source or funding cannot be continued at a sufficient level to a4l o��r for the processing of the federal aid reimbrirsement requests, the City may ('din DOT Aurccrnent No 94211 -5 1 N: F edA d i)( "!' D(T Agency Agreement & 1,e lla -Merge .T'emplale _doc 2 27 03 V pa! []