2014/05/28 Council Agenda Packet

3 work from the plans and specifications, engineering redesign services to accommodate the change, etc.). B. Permitting. The Port will apply for and obtain any necessary permits to allow for construction of the PSO 2 Work. The City acknowledges that the Port Everett Shipyard project is being conducted under a Department of Ecology Consent Decree schedule and must be conducted within the 2014/2015 in -water work window. Accordingly, the City shall fast track with the Port in obtaining permits necessary for the PSO 2 work. C. Procurement. 1. Construction Contract. After approval of the PSO 2 Approved Plans and Specifications and the receipt of all necessary permits for the PSO 2 Work, the Port will call for bids and execute a construction contract for Everett Shipyard project (including the PSO 2 Work) in accordance with the Port's usual procurement processes and the Port's standard form construction contracts, except that: (a) The PSO 2 Work will be a separate bid schedule in the Everett Shipyard project bid package. The bid package will inform bidders that the bid award will be determined based upon bidders' total bid amounts for the entire Everett Shipyard project, including the PSO 2 Work schedule. However, the bid package may also state that, if it is determined not to award the PSO 2 Work (see Section C.2 below), then the bid award will be determined based upon bidders' total bid amounts for the entire Everett Shipyard project, but not including the PSO 2 Work schedule. (b) The contract will state that the PSO 2 Work may be removed from the project by unilateral deductive change order, in which case (i) the contract value will decrease by the amount of the PSO 2 Work Schedule and (ii) the contractor's entitlement to compensation for the removal of the PSO 2 Work from the project will be strictly limited to reimbursement for costs already directly incurred by the contractor for PSO 2 Work, such as purchased by contractor prior to the date of the deductive change order. (c) The construction contract will contain a provision requiring the City be added as an additional insured on the contractor's required liability insurance policies. (d) The construction contract will contain a clause acceptable to the City that allows the Port to assign all contractor's and manufacturer's warranties from the Port to the City. 2. Bidding Off -Ramps. Upon opening of the bids for construction of the Everett Shipyard project, the Parties will meet and confer. (a) City Off- Ramp. If the City determines, in the exercise of its sole discretion, to not proceed with the PSO 2 Work, then the City may terminate Section 2 of this Agreement by delivering a written termination notice to the Port no later than two (2) days after the opening of such bids and the City's receipt of the bid results, in which case the Port will SOM\03221\0081\00762427.V 1 6 11