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Dollars and 00/100 cents ($I,520,000.00) (the "Estimated Project Cost "). City's fair share proportion of the Estimated Project Cost is Four Hundred Ninety Thousand Twenty Seven Dollars and 00 /100 cents ($490,027.00). District's fair share proportion of the Estimated Project Cost is One Million Twenty Nine Thousand Nine Hundred Seventy Three Dollars and 00 /100 cents ($1,029,973.00). The calculation of the Estimated Project Cost and City's and District's respective fair share proportion of the Estimated Project Cost is set forth in Exhibit "C," attached hereto and incorporated herein by reference. G. The Parties desire to enter into this Agreement to specify the terms pursuant to which City will construct, and District will reimburse City for District's fair share proportionate cost of, the Westminster Avenue Sewer Project. NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises herein contained, it is hereby agreed by and between the City and the District, as follows: AGREEMENT 1. Project Construction. 1.1. City shall be responsible, at City's sole cost and expense, for bidding, awarding, and administering a contract for the construction of the Westminster Avenue Sewer Project, in conformance with the Plans and Specifications approved by the District and in accordance with all applicable laws governing construction of public works by either City and /or District, including, but not limited to, laws governing public bidding and the payment of prevailing wages. District shall be responsible for its own Project administration costs, including review of contract change orders, District inspection of the Project and District project coordinator activities. The contractor selected by City to construct the Westminster Avenue Sewer Project shall be hereafter referred to in this Agreement as the "Project Contractor," and the contract between City and the Project Contractor shall hereafter be referred to as the "Project Construction Contract." In the event the projected actual cost of the Westminster Avenue Sewer Project, as reflected in the bid of the lowest responsible bidder to which City intends to award the Project Construction Contract, exceeds the Estimated Project Cost by twenty percent (20 %), City shall not award the Project Construction Contract without prior approval of District's Board of Directors. 1.2. City shall ensure that the Project Construction Contract requires the Project Contractor to provide insurance acceptable to District, to name District and the City of Garden Grove as additional insureds, and to indemnify, defend, and hold harmless District and the City of Garden Grove in a manner approved in writing by District prior to award of the Project Construction Contract. City shall not permit construction of any portion of the Westminster Avenue Sewer Project to commence until evidence of the required insurance and additional insured endorsements have been provided to and approved by District. 2 9127 %.1 W,klffqe�