Any city and the department may enter into an agreementwith respect toany project for the paving of any portion of a primary road extension, and for the construction, reconstruction, and improvement of storm sewers and electrical traffic control devices reasonably incident andnecessary thereto, within such city. Said agreement shall specify that the city shall pay for that portionof the costof said project which isnot payable out of primary road funds, andmay authorize the department to advertise for bids, letcontracts, and supervise the construction of that portion of said project to be paid for by the city.Such agreement shall be a valid and binding obligation on the parties thereto.
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