Laserfiche WebLink
7.A. - Page 73 of 176 <br />10/09/2020 <br />with the Final Construction Documents and performance requirements as approved by City, <br />provided that the City shall not unreasonably interfere with the performance of the Levee <br />Improvement work. During the three (3) year period following substantial completion of the <br />Levee Improvements by the General Contractor in accordance with the Final Construction <br />Documents ("Warranty Period"), SCOA shall cause all or any portion of the Levee <br />Improvements work failing to comply with the Final Construction Documents in design, <br />materials or workmanship to be corrected without unreasonable delay and without cost to City. <br />Except as provided in Section 20, City will not be assuming any liability by approving, <br />reviewing, checking, correcting, or modifying any improvement plans or related specifications or <br />in approving, reviewing or inspecting any work or construction. To the extent that SCOA may <br />assert a right to recovery against another party under one or more of the Design and Construction <br />Agreements (defined in Section 23), City will be a third party beneficiary of such recovery right. <br />If SCOA fails to comply with its Warranty Period obligations, City may access SCOA's <br />warranty security. <br />23. City as Third Party Beneficiary. City will be an intended third party <br />beneficiary of the rights of SCOA with respect to agreements entered into by the SCOA with <br />design, engineering, construction, or other professionals for the purposes of performing the work <br />of design and construction of the Levee Improvements ("Design and Construction <br />Agreements"). For all Design and Construction Agreements entered into after the Effective <br />Date of this Agreement, SCOA will include a provision granting to the City the right of <br />assignment in the event of a SCOA Default under this Agreement. <br />24. Default. SCOA will be in default under this Agreement if (i) SCOA fails to <br />perform one or more material requirements in the Agreement or violates any material legal <br />requirement related to the Levee Improvements work (collectively, a "Deficiency") and (ii) fails <br />to cure a Deficiency within forty-five (45) days following written notice from City of such <br />Deficiency; or, if such Deficiency is not curable within such forty-five (45) day period, then <br />within such period as is reasonably necessary to accomplish such cure provided that within the <br />forty-five (45) day period, SCOA presents City with a written plan acceptable to City to cure the <br />Deficiency (which acceptance will not be unreasonably withheld) and thereafter cures the <br />Deficiency according to such plan (a "Default"). The remedies available to City for a Default <br />will depend on whether the event of Default occurs prior to or following commencement of the <br />Levee Improvements construction work. <br />(a) Default Prior to Commencement of Work. In the event SCOA Defaults prior to <br />commencement of the Levee Improvements construction work, City may, in its discretion, with <br />or without abandoning the Levee Improvements project, declare that SCOA and Owners have no <br />further rights under the Agreement (or any related Encroachment Permit) to implement the <br />Levee Improvements project. If the City elects to continue the Levee Improvements project, <br />City may use any available funds to perform the Levee Improvements construction work by <br />contract or other method City considers advisable including, without limitation in its sole <br />election, by succeeding to SCOA's position under any or all of SCOA's Design and Construction <br />Agreements, including without limitation all bid bonds, the Construction Contract, and General <br />Contractor bonds. If City opts to succeed to SCOA's position under any or all of SCOA's Design <br />and Construction Agreements and/or bonds then City, as SCOA's successor, may exercise all <br />rights and seek all recourse reasonably available to City under any such assumed Design and <br />OAK #4819-4834-1908 v19 26 <br />ATTY/AGR/2020.230/SEAPORT LEVEE AGREEMENT <br />255 <br />