2014/05/28 Council Agenda Packet

SECTION 2: PSO 2 WORK A. Design. 1. Completion of Design. As stated in Recital C above, the Parties have decided to integrate the PSO 2 work to the Port's Everett Shipyard project, which will provide engineering design and construction efficiencies, Accordingly, the Port will prepare (or will have its consultants prepare) all approvals, construction easements, easements, plans and specifications necessary to construct the PSO 2 work. The City will have an opportunity to participate in design team meetings and will have a reasonable opportunity to review and comment. The Parties anticipate that the PSO 2 work will include replacement of the segment of the CSO line that is located between the bulkhead and the tie -back anchor (dead man) and replacement of the CSO line located between the tie -back anchor and West Marine View drive. PSO 2 work is also anticipated to include replacement and other work relating to the pipeline that runs approximately parallel to PSO 2. 2. City Approval of Design. After receiving all City comments, the Port will submit its proposed final plans and specifications (and final form of approvals and easements) to the City for approval, which approval will not be unreasonably withheld. The proposed final plans and specifications (and final form of approvals and easements) shall be accompanied by a prominent notice specifying "Commencement of Port's 30 Day Plans/Specifications Approval - PSO 2 Design Review Period" and shall be delivered to the attention of the City's notice contact specified in Section 3.I. below. Plans and specifications delivered without the required notice or to someone other than the designated recipient shall not constitute proper delivery. The City must either approve or disapprove in writing the Port's proposed final plans and specifications within 30 days after they are delivered to the Port (the "PSO 2 Design Review Period"). If the City does not provide the approval or disapproval to the Port within the PSO 2 Design Review Period, the plans and specifications and approvals and easements are deemed approved. For the purposes of this Agreement, the term "PSO 2 Approved Plans and Specifications" refers to final plans and specifications that are approved under this Section 2.A.2. For the purposes of this Agreement, the term "PSO 2 Work" refers to all excavation, construction, materials, and other activities and items necessary to complete all improvements in accordance with the PSO 2 Approved Plans and Specifications. The Port acknowledges and agrees that the City review and approval under this section is only for the purposes of this Agreement is not review or approval of plans and specifications as may be required under the City's usual municipal processes, such as, for example, building permits and planning department review. 3. Design Review Off -Ramp. If either Party determines during the PSO 2 Design Review Period, in the exercise of its reasonable discretion, that the construction of the PSO 2 work is not in its best interests or is not economical or technically feasible, or if the Port determines it will not proceed with the Everett Shipyard project, then such Party may terminate Section 2 of this Agreement by delivery of written termination notice to the other Party no later than the end of the Design Review Period. In the event of such termination, the terminating Party will pay 100% of the costs incurred under Section 2 of this Agreement up to the date of termination and any other reasonable costs associated with the removing the PSO 2 work from the Everett Shipyard design package (e.g., engineering costs associated with removing PSO 2 5 SOM103221\0081\00762427. V 1 -10