(1) The Department of Transportation may construct, reconstruct, pave and improve and shall repair and maintain streets and roads through cities where such streets or roads, or both:
- (a) Form a link in the highway system of the state or constitute a connection between two such highways; and
- (b) Have been designated by the department as the streets or roads over which there is routed state highway traffic.
- (2) The department, however, shall not change or establish any grade of any such street or road without the consent of the governing body of the city.