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NOW, THERFORE, in consideration of the mutual covenants contained herein, the parties hereto <br /> agree as follows: <br /> 1. The STATE agrees to make the surveys, obtain all necessary rights of way, prepare plans <br /> and specifications, receive bids and award the contract, furnish engineering inspection <br /> during construction and cause the improvement to be built in accordance with the plans, <br /> specifications and contract. <br /> 2. The STATE agrees to pay for all right-of-way, construction and engineering costs, <br /> including the cost of railroad adjustments, subject to reimbursement by the CITY as <br /> hereinafter stipulated. <br /> The STATE will negotiate and/or coordinate with the Railroad for the adjustment of their <br /> railroad facilities at Airport Road, subject to reimbursement by the CITY as hereinafter <br /> stipulated. <br /> 3. It is mutually agreed by and between the parties hereto that the estimated cost and cost <br /> proration for this improvement is as follows: <br />