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4. Plans and specifications shall be approved by the city councils of Columbia Heights and Saint Anthony prior to releasing an advertisement for bids. Contract award to the lowest responsible bidder will be conducted by Saint Anthony. 5. Construction engineering, including bid openings, contract administration, other agency submittals, staking, and contract management shall be performed by Saint Anthony. 6. Construction observation for water and sewer improvements will be the responsibility of the City whose system is being improved. For Example, Columbia Heights watermain improvements will be observed by a city of Columbia Heights representative and constructed to its design standards. Saint Anthony watermain improvements will be observed by a city of Saint Anthony representative and constructed to its design standards. 7. Construction observation for street, sidewalk, and storm sewer improvements will be the responsibility of Saint Anthony. 8. All monthly progress payments to the contractor for any Improvements shall be reviewed and agreed upon by both Columbia Heights and Saint Anthony project representative prior to release of payment. Final contract payment shall occur only after final acceptance of the Improvements by the city council of Columbia Heights and the city council of Saint Anthony. 9. Saint Anthony shall invoice Columbia Heights for reimbursement of Columbia Heights’s portion of the costs of the Improvements in accordance with this Agreement. SECTION B COST ALLOCATION 1. Final Design Costs a. Each party will pay their pro-rated share of design costs for the Improvements. The final design costs of the Improvements shall include, but not be limited to the following: data collection, preparation of drawings and exhibits, and preparation of plans and specifications. Saint Anthony will contract for these final design services with an engineering consulting firm, WSB and Associates, Inc. (WSB). WSB will invoice the City of Saint Anthony directly for this work. 2. Project Administration Costs a. Each party will pay 50% of the project administration costs for the Improvements. The project administration costs for the Improvement shall include, but not be limited to the following: bidding, contractor contracts, project management, pay vouchers, and change orders. Saint Anthony will contract for these project administration services with WSB. WSB will invoice the City of Saint Anthony directly for this work. 3. Construction Observation Costs a. Each party will pay 50% of all costs of the construction observation of the street, watermain and storm sewer improvements. Saint Anthony will contract for these construction 80