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EXHIBIT C <br /> Breach and Related Work <br /> Bidding and Reimbursement <br /> A. Award of Construction Contract for Breach and Related Work. <br /> 1. Construction Contract. After completion of design and the receipt of all <br /> necessary permits by the City for City Breach and Related work no later than the first quarter of <br /> 2017, and amendment to this Agreement identifying the terms of such construction <br /> responsibilities or a separate Agreement per Section 2.10,the County will call for bids and <br /> execute a construction contract for Breach and Related Work(including the Breach and Related <br /> Work in the Smith Island-City area) in accordance with the County's usual procurement <br /> processes and the County's standard form construction contracts, except that: <br /> (a) The Breach and Related Work will have two bid schedules, one for <br /> the Smith-Island-City area work and one for the Smith Island-County area work. The bid <br /> package will contain a provision that in substance states the following: <br /> Bid Schedule A is work on County property and will be paid for by County funds. <br /> Bid Schedule B is work on City of Everett property and will be paid for from City <br /> of Everett funds. Accordingly, it is important that your bid be balanced between <br /> the schedules: if a line item on Schedule A is similar to a line item on Schedule B, <br /> then your bid prices for those line items on each schedule must be similar. The <br /> purpose of this is to make sure that County funds are not subsidizing City work or <br /> vice versa. The County reserves the right to reject any bid that is not balanced. <br /> The low bidder is the bidder with the lowest total bid,which is the sum of Bid <br /> Schedule A and Bid Schedule B. <br /> (b) The construction contract will contain a provision requiring the <br /> City be added as an additional insured on the contractor's required liability insurance policies. <br /> (c) The construction contract will contain a clause reasonably <br /> acceptable to the City that allows the County to assign all contractor's and manufacturer's <br /> warranties from the County to the City. <br /> 2. Bidding Off-Ramps. Upon opening of the bids for construction of the <br /> Breach and Related Work project, the Parties will meet and confer. The County shall award to <br /> the lowest responsible and responsive bidder, except as follows: <br /> (a) Over Budget. If the County determines that its portion of the <br /> Breach and Related Work under the low bid exceeds its available funds for the project,the <br /> County shall reject all bids. If the City determines that its portion of the Breach and Related <br /> Work under the low bid exceeds its available funds for the project, the County shall reject Bid <br /> INTERGOVERNMENTAL AGREEMENT FOR <br /> IMPLEMENTATION OF THE SMITH ISLAND RESTORATION PROJECT PAGE 30 <br />