(a) General rule.--A city may enter into a contract with a municipal corporation to provide for the grading, curbing, draining, paving and macadamizing of any street that constitutes the dividing line between the city and the municipal corporation.
(b) Supervision.--The alterations and improvements shall be made under the supervision of the city or municipal corporation, or by contract let by the city or the municipal corporation, as may be provided for in the contract between the city and the municipal corporation.