(a) The legislative body of a city may order the construction and improvement of a segment of a state highway located, in whole or in part, within the city’s jurisdiction, if the following conditions have been met:

1. (1) The legislative body has made a determination that the public interest or convenience requires the state highway project, and that the land within an assessment district to be assessed to pay the cost and expenses of the state highway project will be benefited.
2. (2) The legislative body has entered a cooperative agreement with the Department of Transportation, as provided in subdivision (b), to fund the construction and improvement of the state highway.
3. (3) The highway project has been included in the state transportation improvement program pursuant to Section 14529 of the Government Code.

(b) The cooperative agreement required by subdivision (a) shall provide for:

1. (1) The Department of Transportation to perform the construction of the project.
2. (2) The city funding of the costs and expenses of the project from the assessment to be levied on the land within the assessment district to be assessed, and from the sale of any bonds which may be issued pursuant to this division or Division 10 (commencing with Section 8500).
3. (3) The agreement to become effective after proceedings have been taken pursuant to this division and the funds are available to carry out all its terms.
4. (4) The division of financial and legal responsibility between the city and the Department of Transportation for the maintenance of the state highway improvements and encroachments upon completion of the work.