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provide insurance acceptable to the CITY, to name the CITY and OCWD each as an additional <br />insured, and to indemnify, defend, and hold harmless CITY and OCWD. OCWD shall not <br />permit construction of any portion of the project to commence until evidence of the required <br />insurance and additional insured endorsements have been provided to and approved by the <br />CITY, <br />2.2. OCWD and CITY shall work together in creating scopes of work, design review, <br />construction inspection, and construction acceptance activities associated with the Improvements <br />located on CITY property. Additionally, all plans must be approved by the CITY prior to <br />commencement of the project, and any and all required permits for the applicable work must be <br />obtained by OCWD or its contractors. The Executive Director of Public Works shall designate a <br />project manager on behalf of the CITY to review and approve said plans and serve as the contact <br />person for OCWD. <br />2.3. Construction change orders and design amendments shall be administered and <br />approved by OCWD, When the subject of the change order or amendment lies partially or <br />wholly within the property of CITY, OCWD shall not issue the change order unless CITY has <br />notified OCWD that CITY consents to the description of work, cost amount and change in <br />contract time (if any) set forth in the change order. <br />SECTION 3. FINANCIAL RESPONSIBILITIES <br />3.1. As defined in Section 1.5 of this AGREEMENT, 36 percent of the perimeter <br />being improved is on the property of CITY and 64 percent of the perimeter being improved is on <br />the property of OCWD. The contract and permit expenses associated with the design and <br />construction of the Improvements listed in Paragraphs 1.2 and 2.2 of this AGREEMENT shall be <br />paid for with these same percentages. CITY shall pay 36 percent of contract expenses for <br />design, permitting and construction of the Improvements, and OCWD shall pay 64 percent of <br />those contract expenses. <br />3.2. OCWD shall pay the Improvements design, construction, and inspection expenses <br />and CITY shall reimburse OCWD for the CITY portion of the expenses. CITY shall pay OCWD <br />upon completion of design for 36 percent of the design and permitting expense, within thirty <br />days of written notice from OCWD of the completion of the design of the Improvements. CITY <br />shall pay OCWD upon completion of construction for 36 percent of the construction and <br />inspection expense, within thirty days of written notice from OCWD of the completion of <br />construction of the Improvements. <br />33, OCWD and CITY shall respectively pay the construction change order expenses <br />according to the location of the change order subject. When the subject of the change order lies <br />partially or wholly within the property of CITY, CITY shall pay the change order expense in <br />proportion to the arnount of the subject within the CITY property. <br />3.4. Power expense and maintenance associated with the remote controlled gate motor <br />and appurtenances shall be the sole responsibility of CITY, except for any repair or maintenance <br />work that is necessary clue to accident or negligence that is directly linked to OCWD or its <br />contractors. <br />250 -5 <br />