03-11-2019 Council Packet - Laserfiche WebLink

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2 SECTION 1. PURPOSE. The purpose of this Agreement is to set forth the terms of the agreement Hugo and Lino Lakes have reached regarding the design, construction, maintenance and financing of the Project both within the corporate limits of Hugo and Lino Lakes, in accordance with Minnesota Statutes, Section 471.59. SECTION 2. DESIGN AND CONSTRUCTION. A. WSB shall design the Project on behalf of both Lino Lakes and Hugo. Lino Lakes and Hugo City Staff shall have the right to review and approve the final Project plans and specifications prior to advertisement for bids in writing. Lino Lakes and Hugo City Staff shall both have the right to inspect, review and comment upon construction of the Project. B. Hugo and Lino Lakes will each acquire right-of-way as necessary within their respective boundaries to permit the construction of the street improvements. C. Hugo and Lino Lakes are responsible to fund their share of the engineering fees for the design and for construction inspections. The fees will be prorated based on the percentage of construction costs as estimated in the attached Exhibit B. The City of Hugo may provide its own construction inspection at its sole cost, but in the event it chooses to do so, it will still be proportionately responsible for its share of engineering fees for the Project. D. Hugo and Lino Lakes are responsible to fund their share of the Project construction costs for work occurring within their respective boundaries. The construction costs as estimated and apportioned are set forth in the attached Exhibit B. E. Each City has the right to terminate this Agreement prior to award by the other City of a construction contract by giving the other party written notice of termination. The terminating party is responsible for its share of all costs incurred up to and including the date of termination. F. Lino Lakes will hold and be the named party to the contract with the contractor. Lino Lakes shall receive from Hugo ninety percent (90%) of Hugo’s estimated share of the Project cost within 60 days of award of a construction contract. Prior to billing this estimate will be updated by Lino Lakes to reflect actual bid prices as awarded. An updated cost estimate shall be provided to Hugo at the time of billing. Upon final completion of the Project, Hugo’s share of the cost will be based upon actual costs incurred for work within its boundaries. If necessary, adjustments to the initial ninety (90%) charged will be made in the form of credit or additional charges to Hugo’s remaining ten percent (10%) share of the project costs. Final payment shall be due within 30 days of billing by Lino Lakes.