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CONSTRUCTION AGREEMENT 2007 Mill and Overlay Project This Agreement is made on , between the City of Rasevzile, a Minnesota municipal corporation("Roseville"), and the City of Arden Hills, a Minnesota municipal corporation ("Arden Hills"). 1. PURPOSE Roseville and Arden Hills (Collectively the "Cities") have determined that it is in the best interests of the residents of each city �o undertake in a cooperative fashion their 2007 Mill and Overlay Project (the "Project"). The goal of the Cities is to provide for a coordinatedcost effective completion of the Project and the associated benefits of economy of scale. The purpose of this agreement is to set forth the terms governing the design and construction of the Project. 2. PROJECT 2.1 The Project shall consist of the facilities identified in Exhibit A hereto, subject to modification as provided herein. 2.2 The costs of the Project will be paid by the Cities as provided in Section 5.1 hereof. 3. DESIGN 3.1 Roseville, will prepare, or have prepared, engineering drawings, specifications and construction plans for the Project. The construction plans will include a cost estimate. The final cost estimate will include all costs associated with the Project as well as a contingency budget for unforeseeable circumstances associated with the construction. Roseville will comply with any requirements of Minnesota law with respect to approvals of such plans and specifications. 3.2 Construction plans, engineering drawings, specifications and cost estimates will be submitted to each city for the approval of each city council. 4.1 CONSTRUCTION 4.1 If final construction plans and specifications are approved by each city council, Roseville shall proceed with construction of the Project. Roseville will advertise for bids in accordance with the requirements of the municipal contracting law. 4.2 Prior to awarding construction contracts Roseville will review the bids received with Arden Hills. If the contracts exceed the cost estimates contained in the construction plans (including a contingency budget) previously approved by the Cities, the bids must be approved by each city council or the project may not proceed.