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NOW, THEREFORE, the parties agree as follows: <br />3. TERMS. <br />3.1 - CITY AGREES: <br />3.1.1. To be the lead agency for obtaining the approval of the TEA -21 STP funds <br />from Caltrans and the approval for advertising, awarding and administering the construction <br />contract of PROJECT. <br />3.1.2. To prepare and obtain environmental clearance for PROJECT. <br />3.1.3. To obtain or cause to obtain right of way required for PROJECT. <br />3.1.4. To prepare or cause to prepare any and all legal documents, including but not <br />limited to plats and legal descriptions, necessary to process vacation of any excess right-of-way <br />not needed by PROJECT. <br />3.1.5. To provide or cause to provide environmental, construction and construction <br />engineering services to construct PROJECT. <br />3.1.6. To review, comment on, and reasonably approve the design plans, <br />specifications and estimate prior to advertising for bids for the construction of the PROJECT. <br />3.1.7. In determining project costs, to keep accurate records and accounts relating to <br />PROJECT regarding contract costs, hours worked, equipment and supplies used, mileage and <br />similar matters, which records shall be open for review by COUNTY and GRAND TERRACE <br />during regular business hours, and retained for audit for a period of three (3) years from the date <br />of final payment. <br />3.1.8. To obtain or cause to be obtained any and all necessary permits for the <br />PROJECT and ensure that any and all utility facilities and appurtenances or structures that are <br />necessary for the construction of the PROJECT are properly removed or relocated, as may be <br />necessary. <br />3.1.9. To coordinate Project implementation with all affected parties. <br />3.1.10. Upon completion of the PROJECT, to be responsible for all maintenance and <br />repair of the traffic signal equipment and operation of the traffic signal. <br />3.1.11 To pay the total of $50,000 for its portion of the PROJECT, in accordance <br />with the Cost Breakdown and Sharing of Project information contained in Exhibit "A," attached <br />hereto and incorporated herein by reference. <br />