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extend from approximately Main Street to CITY's jurisdictional limits east of Highway 42, <br />as shown on Exhibit A. PROJECT shall also include the new dual 30-inch culvert crossing <br />at Highway 42 north of Drainageway A -2, as shown in PLAN. <br />B. Right -of -Way Delineation and Acquisition. Right -of -way for the improvements as set forth <br />in the final design and an estimate of costs for acquisition shall be determined. Maps, parcel <br />descriptions and parcel plats shall also be prepared. <br />C. Construction. PROJECT shall include construction by DISTRICT of the drainage and flood <br />control improvements as set forth in the final design and vegetation establishment. <br />3. PUBLIC NECESSITY <br />PARTIES agree that the work performed pursuant to this Agreement is necessary for the health, <br />safety, comfort, convenience, and welfare of all the people of the State, and is of particular benefit <br />to the inhabitants of DISTRICT and the property therein. <br />4. PROJECT COSTS AND ALLOCATION OF COSTS <br />A. PARTIES agree that for the purposes of this Agreement PROJECT costs shall consist of and <br />be limited to the following: <br />1. Final design services; <br />2. Delineation, description and acquisition of required rights -of -way /easements; <br />3. Construction of improvements; <br />4. Contingencies mutually agreeable to PARTIES. <br />B. It is understood that PROJECT costs as defined above are not to exceed $300,000 without <br />amendment to this Agreement. <br />PROJECT costs for the various elements of the effort are estimated as follows: <br />ITEM AMOUNT <br />1. Final Design $200,000 <br />2. Right -of -way 50,000 <br />3. Construction -0- <br />4. Contingency 50,000 <br />Grand Total .$300,000 <br />This breakdown of costs is for estimating purposes only. Costs may vary between the <br />various elements of the effort without amendment to this Agreement provided the total <br />expenditures do not exceed the maximum contribution by all PARTIES plus accrued <br />interest. <br />1dcm\agrmnt \11 \110403 2 <br />