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CLAIMS. The City will pay any and all lawful claims arising out of or incidental to <br />the performance of the Project(s) work. The City acknowledges that Mn/DOT is <br />acting only as the City's agent for receipt and disbursement of federal funds, and not as <br />a principal or co-principal with respect to the Project(s). In all events, the City wilt <br />indemnify Mn/DOT and hold Mn/DOT harmless from any claims arising out of the <br />Project(s). <br /> <br />II. <br /> <br />DUTIES OF Mn/DOT. <br /> <br />ACCEPTANCE. Mn/DOT accepts designation as Agent of the City for the receipt <br />and disbursement of federal funds and will act in accordance herewith. <br /> <br />PROJECT ACTIVITIES. <br />1. Mn/DOT will make the necessary requests to the FHWA for authorization to use <br /> federal funds for the Project(s), and for reimbursement of eligible costs pursuant <br /> to the terms of this agreement. <br /> <br />Mn/DOT will provide to the City copies of the required Federal-aid clauses to be <br />included in the bid solicitation and will provide the required Federal-aid <br />provisions to be included in the Proposal for Highway Construction. <br /> <br />3. Mn/DOT will review and certify the DBE participation and notify the City when <br /> certification is complete. <br /> <br />4. Mn/DOT will provide the required labor postings. <br /> <br />C. PAYMENTS. <br /> <br />1. Mn/DOT will receive the federal funds to be paid by the FHWA for the <br /> Project(s), pursuant to Minnesota Statutes § 161.36, Subdivision 2. <br /> <br />Mn/DOT will reimburse the City, from said federal funds made available to each <br />Project, for each partial payment request, subject to the availability and limits of <br />those funds. <br /> <br />o <br /> <br />Upon completion of the Project(s), Mn/DOT will perform a final inspection and <br />verify the federal and state eligibility of all the payment requests. If the Project is <br />found to have been completed in accordance with the plans and specifications, <br />Mn/DOT will promptly release any remaining federal funds due the City for the <br />Project(s). <br /> <br />In the event Mn/DOT does not obtain funding from the Minnesota Legislature or <br />other funding source, or funding cannot be continued at a sufficient level to allow <br />for the processing of the federal aid reimbursement requests, the City may <br /> <br /> (Mn/DOT Agreement No. 84231) <br />N:\FedAid\DCP\DCP Agency Agreement & Letter-Merge Template.doc 2/27/03 Page 6 <br /> <br /> <br />