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Live Oak Canyon Road Slurry Seal Improvements <br />Exhibit "B", CITY will pay such costs pursuant to Subsection 9 and Subsection 10 of Section 1. <br />2. Deposit with COUNTY, prior to COUNTY start of work and upon written request by COUNTY, Thirty Nine <br />Thousand Seven Hundred Eighty Dollars and Zero Cents ($39,780.00) (the "Deposit"), which represents <br />one hundred percent (100%) of the estimated costs to complete construction including construction <br />administration, inspection and materials testing and contingency for CITY PROJECT, as provided in Exhibit <br />3. Prepare and approve CEQA clearance for the CITY PROJECT. <br />4. Issue, at no cost to COUNTY or its contractor, upon proper application by COUNTY or COUNTY's <br />contractor, an encroachment permit authorizing entry onto CITY right-of-way to complete construction, <br />including traffic control, construction survey, inspection and materials testing for the COUNTY PROJECT <br />and CITY PROJECT. <br />5. Provide at no cost to the COUNTY, oversight of the CITY PROJECT, to provide prompt reviews and <br />approvals, as appropriate, of submittals by COUNTY, and to cooperate in timely processing of the CITY <br />PROJECT. <br />6. Provide at no cost to COUNTY, a representative to coordinate and assist the COUNTY Resident Engineer <br />during the construction of the CITY PROJECT and to verify facilities are constructed as required by this <br />Agreement. <br />7. Pay COUNTY for any final costs associated with the CITY PROJECT that are in excess of the Deposit as <br />determined pursuant to Subsection 10 of Section 1. <br />SECTION 3 • IT IS MUTUALLY AGREED AS FOLLOWS: <br />1. If upon opening of bids for construction of the CITY PROJECT the bids indicate a cost overrun of no more <br />than ten percent (10%) of the construction cost estimate will occur, as described in Exhibit "B", COUNTY <br />may award the contract. <br />2. If upon opening of bids it is found that a cost overrun exceeding ten percent (10%) of the construction cost <br />estimate will occur, COUNTY and CITY shall endeavor to agree upon an alternative course of action. If, <br />after fourteen (14) calendar days from the date of bid opening, an alternative course of action is not agreed <br />upon, this Agreement shall be deemed to be terminated by mutual consent. COUNTY shall reimburse CITY <br />County of Riverside & City of Redlands Service Agreement <br />4 <br />