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3 <br />r• <br />alternate. Because the Port's marine tenninals are a federally secured facility, the City will <br />include Port -provided specifications in the contract bid document that will require the contractor <br />to have Transportation Worker Identification Cards (TWIC) for all of its personnel that intend to <br />work onsite and that will require compliance with all TWIC requirements and all federal security <br />provisions. <br />2. Bidding Off -Ramp. Upon opening of the bids for construction of the <br />PSO 6 Work, the Parties will meet and confer. If either Party determines, in the exercise of its <br />reasonable discretion, that the construction of the PSO 6 Work is not economical, then such <br />Party may terminate Section 1 of this Agreement by delivering a written termination notice to the <br />other Party no later than five (5) days after the opening of such bids. In the event of such <br />termination, the terminating Party will pay all costs incurred under Section 1 of this Agreement <br />up to the date of termination. <br />D. Construction. The City shall complete all PSO 6 Work in accordance with the <br />PSO 6 Approved Plans and Specifications. The Port may, at the Port's sole cost, observe and <br />inspect the PSO 6 Work to verify that the PSO 6 Work is being performed in accordance with the <br />PSO 6 Approved Plans and Specifications. The City and the Port shall cooperate so that the <br />Port's observation and inspection does not hinder, restrict or delay the PSO 6 Work. The Port <br />may attend construction meetings. With respect to PSO 6 Work that is not Port Additional <br />Work, the City without Port approval may execute change orders to the PSO 6 Work that in total <br />increase the cost of the PSO 6 Work by up to 10% above the amount of the original PSO 6 Work <br />construction contract. The City will not execute change orders above such 10% without the prior <br />approval of the Port, which will not be unreasonably withheld. With respect to Port Additional <br />Work, the City will not execute change orders of any amount without the prior written approval <br />of the Port. <br />E. Completion of PSO 6 Work. Upon completion of the PSO 6 Work other than Port <br />Additional Work and its acceptance by the City in accordance with the City's usual acceptance <br />processes, the PSO 6 Work other than Port Additional Work is the property of the City. With <br />such acceptance, the City has responsibility for the maintenance and operation of the PSO 6 <br />Work other than Port Additional Work. The costs of such maintenance and operation will be <br />allocated between the Parties by mutual agreement. <br />F. Special Provision Regarding Port Additional Work. The Port will coordinate with <br />the City so that the Port takes a lead role in the oversight and inspection of Port Additional Work <br />and so that the Port Additional Work does not delay other PSO 6 Work. If reasonably requested <br />by the Port, the City will during cor .txucliorr add by change order additional Port Additional <br />Work to the PSO 6 Work. Upon completion of all Port Additional Work, the Port will promptly <br />notify the City that the Port Additional Work is ready for acceptance. Upon such notice, (1) the <br />City will accept the Port Additional Work from the contractor, (2) the Port Additional Work is <br />the property of the Port, and (3) the Port has responsibility for the maintenance and operation of <br />the Port Additional Work. The City and Port will cooperate to execute any documents (such as <br />bills of sale) necessary to document the Port's ownership interest in the Port Additional Work <br />and will cooperate to transfer to the Port any contractor or manufacturer's warranties for the Port <br />Additional Work. <br />3 <br />SOM\03221\O081\00762427.V 1 <br />8 <br />