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3 <br />INTERLOCAL AGREEMENT <br />BETWEEN <br />THE CITY OF EVERETT AND PORT OF EVERETT REGARDING <br />IMPROVEMENTS TO PUGET SOUND OUTFALL 6 <br />AND PUGET SOUND OUTFALL NO. 2 <br />This Interlocal Agreement ("Agreement") is dated for reference purposes <br />, 2014, and is between the CITY OF EVERETT (the "City") and the PORT OF <br />EVERETT (the "Port") (individually a "Party" and collectively the "Parties"). <br />RECITALS <br />A. The City owns and operates Puget Sound Outfall No. 6 ("PSO 6") and Puget <br />Sound Outfall 2 ("PSO 2"). A City investigation recently discovered concrete blockage in the <br />PSO 6 pipeline, which must be fixed. In addition, a portion PSO 2 must be replaced and moved. <br />B. The Port also has property near the PSO 6 that is subject to flooding because of <br />the blockage in the PSO 6 pipeline. To restore the capacity of the PSO 6, the Parties have <br />determined that they should split the cost equally for rerouting the PSO 6 pipeline, including <br />design, permitting and construction. <br />C. A portion of PSO 2 is located on Port property. The Port is currently preparing <br />the engineering design for the Everett Shipyard Model Toxics Control Act sediment cleanup <br />project under a Consent Decree with the Department of Ecology on that property. In <br />conjunction with that project, the City and Port have determined that the Port will design and <br />construct the PSO 2 improvements within its property, subject to City approval, with <br />reimbursement from the City. The purpose of combining the PSO 2 replacement project with the <br />cleanup project is to gain engineering and construction project efficiencies to restore the <br />condition of the PSO 2. <br />D. The purpose of this Agreement is for the City and Port to formalize their <br />understandings regarding the relocation of the two outfalls and to complete the work required to <br />do so. <br />The Parties agree as follows: <br />AGREEMENT <br />SECTION 1: PSO 6 WORK <br />A. Design. <br />1. Completion of Design. The City will prepare (or will have its consultants <br />prepare) all approvals, construction easements, easements, plans and specifications necessary to <br />construct the PSO 6 pipeline reroute. The Port will have an opportunity to participate in design <br />team meetings and will have a reasonable opportunity to review and comment. The Port may <br />request that the City add additional work to the proposed PSO 6 plans and specifications, such as <br />drainage work on the Port property (such additional work, "Port Additional Work"). The City <br />will not unreasonably refuse such a request. <br />1 <br />S OM\03221 \0081 \007 62427. V 1 <br />6 <br />