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2. Port Approval of Design. After receiving all Port comments, the City will <br />submit its proposed final plans and specifications (and final form of approvals and easements) to <br />the Port for approval, which approval will not be unreasonably withheld. The proposed final <br />plans and specifications (and final form of approvals and easements) shall be accompanied by a <br />prominent notice specifying "Commencement of Port's 30 Day Plans/Specifications Approval - <br />P SO 6 Design Review Period" and shall be delivered to the attention of the Port's Notice Contact <br />specified in Section 3.I. below. Plans and specifications delivered without the required notice or <br />to someone other than the designated recipient shall not constitute proper delivery. The Port <br />must either approve or disapprove in writing the City's proposed final plans and specifications <br />within 30 days after they are delivered to the Port (the "PSO 6 Design Review Period"). If the <br />Port does not provide the approval or disapproval to the City within the PSO 6 Design Review <br />Period, the plans and specifications and approvals and easements are deemed approved. For the <br />purposes of this Agreement, the term "PSO 6 Approved Plans and Specifications" refers to final <br />plans and specifications that are approved under this Section1.A.2, which includes final plans <br />and specifications for Port Additional Work, if any. For the purposes of this Agreement, the <br />term "PSO 6 Work" refers to all excavation, construction, materials, and other activities and <br />items necessary to complete all improvements in accordance with the PSO 6 Approved Plans and <br />Specifications, including without limitation Port Additional Work, if any. <br />3. Design Review Off -Ramp. If either Party determines during the PSO 6 <br />Design Review Period, in the exercise of its reasonable discretion, that the construction of the <br />PSO 6 work is not in its best interests or is not economical or technically feasible, then such <br />Party may terminate Section 1 of this Agreement by delivery of written termination notice to the <br />other Party no later than the end of the Design Review Period. In the event of such termination, <br />the terminating Party will pay all costs incurred under Section 1 of this Agreement up to the date <br />of termination. <br />B. Permitting. <br />1. City to Obtain Permits. The City will apply for and obtain any necessary <br />permits to allow for construction of the PSO 6 Work. The Port shall reasonably _cooperate with <br />the City in obtaining such permits. <br />2. Construction Easements. The Port will grant the City and the City's <br />contractors any temporary construction easements or licenses necessary for the construction of <br />the PSO 6 Work. The City will work with the Port to identify the contractor work areas, <br />including lay down areas in an effort to minimize disruption of ongoing marine terminal <br />operations. <br />C. Procurement. <br />1. Construction Contract. After approval of the PSO 6 Approved Plans and <br />Specifications and the receipt of all necessary permits for the PSO 6 Work, the City will call for <br />bids and execute a construction contract for the PSO 6 Work in accordance with the City's usual <br />procurement processes and the City's standard form construction contracts, with the Port added <br />as an additional insured on the contractor's required liability insurance policies. If there is Port <br />Additional Work, the City may bid the Port Additional Work as a separate bid schedule or bid <br />SOM\03221\0081\00762427. V 1 <br />2 <br />7 <br />