Agmt08 South Bayside System Authority SBSA

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5. If the final Segment III Project, as described and approved by SBSA under CEQA, can be mitigated to avoid any adverse environmental effects and such SBSA-approved project does not trespass or intrude upon SBSA's lands, SBSA shall notify City of its intention to proceed with construction of the Segment III Project. 6. SBSA shall apply for all permits, any other entitlements and amendments to prior permits/entitlements (collectively, 'Permits") from the Regulatory Agencies for construction of the Segment III Project. City shall provide SBSA with copies of all such prior Permits issued to City for the Perimeter Levee Project and shall cooperate with and assist SBSA in obtaining Permits for the Segment III Project. If required by the Regulatory Agencies, City shall act as a co-applicant for the Permits. 7. If SBSA is unsuccessful in obtaining Permits for the Segment III Project and SBSA is thereby prevented from constructing said Project, this Agreement shall be terminated. In such event, SBSA shall be compensated from the funds deposited by City pursuant to Paragraph 3 hereof for its expenditures incurred hereunder to the date of termination and SBSA shall refund to City the unencumbered remaining balance of the deposit. If SBSA obtains all necessary Permits, SBSA shall notify City thereof and shall proceed with preparation of the Contract Documents (hereinafter defined) for construction of the Segment III Project. 8. The Contract Documents shall include, without limitation, plans, specifications, general conditions, notice to bidders, bid form(s), performance and payment bonds and such other provisions generally included by SBSA in its construction contract documents (collectively, 'Contract Documents"). 9. The Contract Documents shall require that City shall be named as an additional insured under the general contractor's commercial general liability and automobile liability policies. They shall include insurance provisions that are at a minimum equivalent to the standard insurance requirements for City's construction contracts and shall require that the contractor awarded the contract shall, before commencing construction, furnish both payment and performance bonds naming SBSA as Guarantee. The Contract Documents shall conform to the requirements of FEMA, the Regulatory Agencies, the Permits and statutory and regulatory provisions governing SBSA's construction contracts in general. 10. Prior to advertising for bids, SBSA shall provide City with a copy of the proposed Contract Documents and any addenda thereto, for review and approval. City shall be afforded a reasonable amount of time to review, comment upon and approve the Contract Documents. SBSA shall make such reasonable revisions thereto that City may request and that are consistent with the aforesaid requirements of FEMA, the Regulatory Agencies, the Permits and statutory and 3 RC/SB$ALev.eeSegIIlAgn:lnt050708r .