Agmt08 South Bayside System Authority SBSA

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regulatory provisions governing SBSA's construction contracts in general. 11. Costs of preparation of the Contract Documents shall be paid from City's deposit made pursuant to Paragraph 3 hereof. 12. Upon City's approval of the Contract Documents, which approval shall not unreasonably be withheld, SBSA shall advertise for bids for the Segment III Project. City may disapprove the bid of the lowest responsible bidder if said bid would cause the total expenditures for the Segment III Project to exceed the Expenditure Limitation specified in paragraph 3 hereof. In such event, SBSA shall reject all bids received and this Agreement shall be terminated unless City approves the lowest responsible bid in writing, notwithstanding that it exceeds the Expenditure Limitation or unless the Parties provide to the contrary by written amendment or supplement hereto. In the event of termination, 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. 13. Upon City's approval of the lowest responsible bid, SBSA shall award and administer the contract for the construction of the Segment III Project in accordance with the Contract Documents, pertinent requirements of the California Public Contract Code, California Labor Code (including prevailing wage provisions) and such other requirements governing SBSA's construction contracts. 14. City shall certify the Segment III Project with FEMA. The certification shall include, but not be limited to, the filing of a Letter of Map Revision with FEMA. 15. SBSA and its general contractor shall administer the Contract Documents on an actual expense basis. 16. Proposed change orders that would cause the cost of the Segment III Project to exceed the Expenditure Limitation shall be subject to the prompt and reasonable approval of City. 17. SBSA shall be responsible for requiring all work, remedial action, monitoring, clean up, payment of fines or penalties or other action that may be required for compliance with the Permits or provisions of law governing performance of, or arising out of, construction of the Segment III Project. 18. SBSA shall allow on the site of the Segment III Project, a field site representative of City, who shall be a qualified licensed Civil Engineer in the State of California, to represent the City during the construction. City shall have the right to inspect the construction during the course thereof in company with SBSA's inspector or other representative designated by SBSA's Manager. City shall provide SBSA reasonable notification of City's intention to inspect by 4 . RC/$BSALeveeSeglllAgmnt050708r