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HomeMy WebLinkAboutPW04-293 - Original - Department of the Army - Meridian Valley Creek Ecosystem Restoration - 11/16/2004 ecords M eme KENT Document WASNIMOTON CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed, N you have questions, please contact City Clerks Office. Vendor Name: ter;Ls. Q4 Ay l\ 4 Vendor Number: JD Edwards Number Contract Number: - "�'��- g2-5 This is assigned by Deputy City Clerk Description: Detail: PY-n c4 L ��� O JAI Lid � Project Name:_tL rLkt D Contract Effective Date: G-) Termination Date: Contract Renewal Notice (Days): Number of days required notice for termination or renewal or amendment Contract Manager: &W8 Department: Abstract: i_nL1 CA 0 )- -D - eO S Public\RecordsManagement\Forms\ContractCover\ADCL7832 07/02 PROJECT COOPERATION AGREEMENT BETWEEN THE DEPARTMENT OF THE ARMY AND THE CITY OF KENT, WASHINGTON FOR CONSTRUCTION OF THE MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT KENT, WASHINGTON THIS AGREEMENT is entered into this_W,day of l loW.4e� , 2004, by and between the Department of the Army(hereinafter the "Government"), represented by the Seattle District Commander, and the City of Kent (hereinafter the 'Non-Federal Sponsor"),represented by the Mayor of the City of Kent. WITNESSETH, THAT: WHEREAS, construction of the Duwamish/Green Ecosystem Restoration Project at King County, Washington(hereinafter the"Authorized Project")was authorized by Section 101(b)(26)of the Water Resources Development Act of 2000, Public Law 106-541; WHEREAS, the Government and the Non-Federal Sponsor desire to enter into a Project Cooperation Agreement for construction of a separate element of the Authorized Project at Meridian Valley Creek (hereinafter the "Project", as defined in Article I.A. of this Agreement); WHEREAS, Section 103 of the Water Resources Development Act of 1986, Public Law 99-662, as amended,specifies the cost-sharing requirements applicable to the Project; WHEREAS, Section 221 of the Flood Control Act of 1970, Public Law 91-611, as amended, and Section 103 of the Water Resources Development Act of 1986, Public Law 99-662, as amended, provide that the Secretary of the Army shall not commence construction of any water resources project, or separable element thereof, until each non-Federal sponsor has entered into a written agreement to fiumish its required cooperation for the project or separable element; WHEREAS, Section 902 of Public Law 99-662 establishes the maximum amount of costs for the Authorized Project and sets forth procedures for adjusting such maximum amount; PROJECT COOPERATION AGREEMENT—Page 1 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) WHEREAS, Section 4 of the Flood Control Act of 1944, Public Law 78-534, as amended; the Federal Water Project Recreation Act of 1965, Public Law 89-72; and Section 103(c)(4) of the Water Resources Development Act of 1986, Public Law 99-662, give authority to include recreation as a project purpose and specify the cost sharing requirements applicable to recreation features; and WHEREAS, the Government and Non-Federal Sponsor have the full authority and capability to perform as hereinafter set forth and intend to cooperate in cost-sharing and financing of the construction of the Project in accordance with the terms of this Agreement. NOW, THEREFORE, the Government and the Non-Federal Sponsor agree as follows: ARTICLE I- DEFINITIONS AND GENERAL PROVISIONS For purposes of this Agreement: A. The term "Project" shall mean the construction of ecosystem restoration and recreation features at Meridian Valley Creek as generally described in the final report of the Chief of Engineers dated December 29, 2000, and "Green/Duwamish River Basin Ecosystem Restoration Study, Final Feasibility Report," dated October 2000, and approved by the District Engineer, U.S. Army Corps of Engineers, Seattle District on October 30, 2000, and forwarded to the Division Commander on November 2, 2000. B. The term "total project costs" shall mean all costs incurred by the Non- Federal Sponsor and the Government in accordance with the terms of this Agreement directly related to construction of the Project. Subject to the provisions of this Agreement, the term shall include,but is not necessarily limited to: continuing planning and engineering costs incurred after October 1, 1985; advanced engineering and design costs; preconstruction engineering and design costs; engineering and design costs during construction; the costs of investigations to identify the existence and extent of hazardous substances in accordance with Article XV.A. of this Agreement;the costs of monitoring of the Project as defined in paragraph O. of this Article; the costs of adaptive management as defined in paragraph P. of this Article; the costs of historic preservation activities in accordance with Article XVIH.A. of this Agreement;actual construction costs,including the costs of alteration, lowering, raising, or replacement and attendant removal of existing railroad bridges and approaches thereto; supervision and administration costs; costs of participation in the Project Coordination Team in accordance with Article V of this Agreement; costs of contract dispute settlements or awards; the value of lands, easements, rights-of-way, relocations, and suitable borrow and dredged or excavated material disposal PROJECT COOPERATION AGREEMENT—Page 2 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) areas for which the Government affords credit in accordance with Article IV of this Agreement; and costs of audit in accordance with Article X of this Agreement. The term does not include any costs for operation,maintenance, repair,replacement, or rehabilitation; any costs due to betterments; or any costs of dispute resolution under Article VII of this Agreement. C. The term "ecosystem restoration features" shall include fish blockage removals, side channel construction and/or enhancement, levee modification, riparian revegetation, stream and river rehabilitation, large woody debris placement, side channel reconnection, tidal habitat construction, landslide rehabilitation, gravel replenishment, and system-wide plantings,or any combination thereof. D. The term "total project ecosystem restoration costs" shall mean that portion of the total project costs that the Government assigns to the ecosystem restoration features. E. The term "recreation features" shall mean a trail, outlook, and signage located on project lands. F. The term "total project recreation costs" shall mean that portion of the total project costs that the Government assigns to recreation features. G. he term "financial obligation for construction" shall mean a financial obligation of the Government, other than an obligation pertaining to the provision of lands, easements, rights-of-way, relocations, and borrow and dredged or excavated material disposal areas, that results or would result in a cost that is or would be included in total project costs. H. The term "non-Federal proportionate share" shall mean the ratio of the Non- Federal Sponsors total cash contribution required in accordance with Articles II.D.. and II.E.. of this Agreement to total financial obligations for construction, as projected by the Government. I. The tern "period of construction" shall mean the time from the date the Government first notifies the Non-Federal Sponsor in writing, in accordance with Article VI.B. of this Agreement, of the scheduled date for issuance of the solicitation for the first construction contract to the date that the U.S. Army Engineer for the Seattle District (hereinafter the "District Engineer") notifies the Non-Federal Sponsor in writing of the Government's determination that construction of the Project is complete. J. The term "highway" shall mean any public highway, roadway, street, or way,including any bridge thereof. PROJECT COOPERATION AGREEMENT—Page 3 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) K. The term "relocation" shall mean providing a functionally equivalent facility to the owner of an existing utility, cemetery, highway or other public facility, or railroad (excluding existing railroad bridges and approaches thereto)when such action is authorized in accordance with applicable legal principles of just compensation or as otherwise provided in the authorizing legislation for the Project or any report referenced therein. Providing a functionally equivalent facility may take the form of alteration, lowering, raising, or replacement and attendant removal of the affected facility or part thereof. L. The term "fiscal year" shall mean one fiscal year of the Government. The Government fiscal year begins on October 1 and ends on September 30. M. The term "functional portion of the Project" shall mean a portion of the Project that is suitable for tender to the Non-Federal Sponsor to operate and maintain in advance of completion of the entire Project. For a portion of the Project to be suitable for tender, the District Engineer must notify the Non-Federal Sponsor in writing of the Government's determination that the portion of the Project is complete and can function independently and for a useful purpose,although the balance of the Project is not complete. N. The term "betterment" shall mean a change in the design and construction of an element of the Project resulting from the application of standards that the Government determines exceed those that the Government would otherwise apply for accomplishing the design and construction of that element. O. The term "monitoring" shall mean monitoring of the Project during years 2 and 5 of the 5-year period following construction of the Project, in order to assure that the ecosystem restoration features continue to function properly after construction. This term shall include, but is not necessarily limited to: monitoring the success of vegetation/habitat establishment in the Project area; and monitoring the restored aquatic resources associated with the Project; and monitoring fish and wildlife resources associated with the restored habitats. Monitoring results shall be compared to success criteria identified for the Project so as to determine if adaptive management measures are necessary. As of the effective date of this Agreement, the costs of the monitoring are projected to be $60,000.00. P. The term "adaptive management" shall mean changes made to the Project based on monitoring results and deemed necessary to obtain the environmental restoration objectives. Adaptive management may include adjustments for unforeseen circumstances and changes to structures or their operations or management techniques and shall be undertaken if the Government, after consultation with the Non-Federal Sponsor, determines adjustments are necessary to obtain the Project objectives. As of the effective date of this Agreement, the costs of adaptive management are projected to be $40,000.00. PROJECT COOPERATION AGREEMENT—Page 4 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) ARTICLE II-OBLIGATIONS OF THE GOVERNMENT AND THE NON-FEDERAL SPONSOR A. The Government, subject to receiving funds appropriated by the Congress of the United States (hereinafter,the "Congress") and using those funds and funds provided by the Non-Federal Sponsor, shall expeditiously construct the Project (including alteration, lowering, raising, or replacement and attendant removal of existing railroad bridges and approaches thereto), applying those procedures usually applied to Federal projects, pursuant to Federal laws,regulations,and policies. 1. The Government shall afford the Non-Federal Sponsor the opportunity to review and comment on the solicitations for all contracts, including relevant plans and specifications, prior to the Government's issuance of such solicitations. The Government shall not issue the solicitation for the first construction contract until the Non-Federal Sponsor has confirmed in writing its willingness to proceed with the Project. To the extent possible, the Government shall afford the Non-Federal Sponsor the opportunity to review and comment on all contract modifications, including change orders, prior to the issuance to the contractor of a Notice to Proceed. In any instance where providing the Non-Federal Sponsor with notification of a contract modification or change order is not possible prior to issuance of the Notice to Proceed,the Govemment shall provide such notification in writing at the earliest date possible. To the extent possible, the Government also shall afford the Non-Federal Sponsor the opportunity to review and comment on all contract claims prior to resolution thereof. The Government shall consider in good faith the comments of the Non- Federal Sponsor, but the contents of solicitations, award of contracts, execution of contract modifications, issuance of change orders, resolution of contract claims, and performance of all work on the Project (whether the work is performed under contract or by Government personnel),shall be exclusively within the control of the Government. 2. Throughout the period of construction, the District Engineer shall furnish the Non-Federal Sponsor with a copy of the Government's Written Notice of Acceptance of Completed Work for each contract for the Project. 3. Notwithstanding paragraph A.1. of this Article, if, upon the award of any contract for construction of the Project, cumulative financial obligations for construction would exceed $1,000,000.00, the Government and the Non-Federal Sponsor agree to defer award of that contract and all subsequent contracts for construction of the Project until such time as the Government and the Non-Federal Sponsor agree to proceed with further contract awards for the Project,but in no event shall the award of contracts be deferred for more than three years. Notwithstanding this general provision for deferral of contract awards, the Government, after consultation with the Non-Federal Sponsor, may award a contract or contracts after the Assistant Secretary of the Army (Civil Works) makes a written determination that the award of such contract or contracts must proceed in order to comply with law or to protect life or property from imminent and substantial harm. PROJECT COOPERATION AGREEMENT—Page 5 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) 4. As of the effective date of this Agreement, $386,000.00 of Federal funds are currently projected to be available for the Project. This amount is less than the Federal share of the projected total Project costs and the Government makes no commitment to budget for the balance of the Federal share of total Project costs. Notwithstanding any other provision of this Agreement, the Government's financial participation in the Project is limited to this amount together with any additional funds that the Congress may provide for the Project. In the event that the Congress does not provide additional funds sufficient to complete implementation of the Project, the Government, within the funds available for the Project, shall terminate implementation of the Project in a manner necessary to provide for the safety of the public and the integrity of the completed work. To provide for this eventuality, the Government may reserve a portion of the total Federal funds available for the Project and an equal portion, in percent, of the total funds contributed by the Non-Federal Sponsor pursuant to Articles II.D. and II.E. of this Agreement as a contingency to pay the costs of termination, including any costs of contract claims and contract modifications. B. The Non-Federal Sponsor may request the Government to accomplish betterments. Such requests shall be in writing and shall describe the betterments requested to be accomplished. If the Government in its sole discretion elects to accomplish the requested betterments or any portion thereof, it shall so notify the Non-Federal Sponsor in a writing that sets forth any applicable terms and conditions, which must be consistent with this Agreement. In the event of conflict between such a writing and this Agreement, this Agreement shall control. The Non-Federal Sponsor shall be solely responsible for all costs due to the requested betterments and shall pay all such costs in accordance with Article VI.C. of this Agreement. C. When the District Engineer determines that the entire Project is complete or that a portion of the Project has become a functional portion of the Project, the District Engineer shall so notify the Non-Federal Sponsor in writing and furnish the Non-Federal Sponsor with an Operation, Maintenance, Repair, Replacement, and Rehabilitation Manual (hereinafter the "OMRR&R Manual") and with copies of all of the Government's Written Notices of Acceptance of Completed Work for all contracts for the Project or the functional portion of the Project that have not been provided previously. Upon such notification, the Non-Federal Sponsor shall operate, maintain, repair, replace, and rehabilitate the entire Project or the functional portion of the Project in accordance with Article VIE of this Agreement. D. The Non-Federal Sponsor shall contribute of 35 percent of total project ecosystem restoration costs in accordance with the provisions of this paragraph. PROJECT COOPERATION AGREEMENT—Page 6 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Deparhnent of the Army and the City of Kent) 1. hi accordance with Article III of this Agreement, the Non-Federal Sponsor shall provide all lands,easements, rights-of-way,and suitable borrow and dredged or excavated material disposal areas that the Government determines the Non-Federal Sponsor must provide for the construction, operation, and maintenance of the ecosystem restoration features, and shall perform or ensure performance of all relocations that the Govemment determines to be necessary for the construction, operation, and maintenance of the ecosystem restoration features . 2. If the Government projects that the value of the Non-Federal Sponsor's contributions under paragraph D.1. of this Article and Articles V, X, and W.A. of this Agreement, assigned to total ecosystem restoration costs,will be less than 35 percent of total ecosystem restoration costs, the Non-Federal Sponsor shall provide an additional cash contribution, in accordance with Article VI.B. of this Agreement, in the amount necessary to make the Non-Federal Sponsor's total contribution equal to 35 percent of total ecosystem restoration costs. 3. If the Government determines that the value of the Non-Federal Sponsor's contributions provided under paragraphs D.1. and D.2. of this Article and Articles V, X, W.A., XVIII.A., and XVIII.C. of this Agreement, assigned to total ecosystem restoration costs, has exceeded 35 percent of total ecosystem restoration costs, the Government, subject to the availability of funds, shall reimburse the Non-Federal Sponsor for any such value in excess of 35 percent of total ecosystem restoration costs. After such a determination,the Government, in its sole discretion,may provide any remaining ecosystem restoration feature lands, easements, rights-of-way, and suitable borrow and dredged or excavated material disposal areas and perform any remaining ecosystem restoration feature relocations on behalf of the Non-Federal Sponsor for ecosystem restoration. E. The Non-Federal Sponsor shall contribute a minimum of 50 percent of total project recreation costs in accordance with the provisions of this paragraph. 1. In accordance with Article III of this Agreement, the Non-Federal Sponsor shall provide all lands, easements, rights-of-way, and suitable borrow and dredged or excavated material disposal areas that the Government determines the Non- Federal Sponsor must provide for the construction, operation, and maintenance of the recreation features, and shall perform or ensure performance of all relocations that the Government determines to be necessary for the construction operation and maintenance of the recreation features. 2. If the Government projects that the value of the Non-Federal Sponsor's contributions under E.I. of this Article and Articles V, X, and XV.A. of this Agreement, assigned to total project recreation costs, will be less than 50 percent of total recreation costs, the Non-Federal Sponsor shall provide an additional cash contribution, in accordance with Article VI.B. of this Agreement, in the amount necessary to make the PROJECT COOPERATION AGREEMENT—Page 7 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) Non-Federal Sponsor's total contribution equal to 50 percent of total project recreation costs. 3. If the Government determines that any cash contributed by the Non- Federal Sponsor under E.2. of this Article, when added to the value of the Non-Federal Sponsor's contributions under E.l. of this Article and Articles V, X and XV.A. of this Agreement, exceeds 50 percent of total project recreation costs, the Government shall, subject to the availability of funds, refund to the Non-Federal Sponsor the portion of any such cash that, when added to the value of the Non-Federal Sponsor's contributions under E.1. of this Article and Articles V,X and XV.A. of this Agreement, exceeds 50 percent of total project recreation costs. However, the Government shall not reimburse the Non- Federal Sponsor for the value of the Non-Federal Sponsor's contributions under E.1. of this Article and Articles V, X and XV.A. of this Agreement that exceed 50 percent of total project recreation costs. 4. Notwithstanding any other provisions of this paragraph, the Government's share of total project recreation costs shall not exceed 10 percent of the Government's share of total project ecosystem restoration costs. The Non-Federal Sponsor shall be responsible for all total recreation costs above such 10 percent limit. F. The Non-Federal Sponsor may request the Government to provide lands, easements, rights-of-way, and suitable borrow and dredged or excavated material disposal areas or perform relocations on behalf of the Non-Federal Sponsor. Such requests shall be in writing and shall describe the services requested to be performed. If in its sole discretion the Government elects to perform the requested services or any portion thereof, it shall so notify the Non-Federal Sponsor in a writing that sets forth any applicable terms and conditions,which must be consistent with this Agreement. In the event of conflict between such a writing and this Agreement, this Agreement shall control. The Non-Federal Sponsor shall be solely responsible for all costs of the requested services and shall pay all such costs in accordance with Article VI.C. of this Agreement. Notwithstanding the provision of lands, easements, rights-of-way, and suitable borrow and dredged or excavated material disposal areas or performance of relocations by the Government, the Non-Federal Sponsor shall be responsible, as between the Government and the Non-Federal Sponsor, for the costs of cleanup and response in accordance with Article XV.C.of this Agreement. G. The Government, in accordance with Federal laws, regulations, and policies, shall assign all costs included in total project costs to either total project ecosystem restoration costs or total project recreation costs. PROJECT COOPERATION AGREEMENT—Page 8 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) H. The Government shall perform a final accounting in accordance with Article VI.D. of this Agreement to determine the contributions provided by the Non-Federal Sponsor in accordance with paragraphs B., D., E. and F. of this Article and Articles V, X, and XV.A. of this Agreement and to determine whether the Non-Federal Sponsor has met its obligations under paragraphs B.,D.,E and F.of this Article. I. The Non-Federal Sponsor shall not use Federal funds to meet the Non- Federal Sponsor's share of total project costs under this Agreement unless the Federal granting agency verifies in writing that the expenditure of such funds is expressly authorized by statute. J. The Non-Federal Sponsor shall prevent future recreation features from significantly impacting or interfering with the intended functions of the Project. K. The Non-Federal Sponsor shall provide and maintain access roads, parking areas,and other public use facilities in accordance with all applicable Federal and State laws and regulations, including Section 601 of the Civil Rights Act of 1964, Public Law 88-352, and Department of Defense Directive 5500.11 issued pursuant thereto, as well as Army Regulation 600-7 entitled, "Nondiscrimination on the Basis of handicap in Programs and Activities Assisted or Conducted by the Department of the Army." ARTICLE III - LANDS, RELOCATIONS, DISPOSAL AREAS,AND PUBLIC LAW 91-646 COMPLIANCE A. The Government, after consultation with the Non-Federal Sponsor, shall determine the lands, easements, and rights-of-way required for the construction, operation, and maintenance of the Project, including those required for relocations, borrow materials, and dredged or excavated material disposal. The Government in a timely manner shall provide the Non-Federal Sponsor with general written descriptions, including maps as appropriate, of the lands, easements, and rights-of-way that the Government determines the Non-Federal Sponsor must provide,in detail sufficient to enable the Non-Federal Sponsor to fulfill its obligations under this paragraph, and shall provide the Non-Federal Sponsor with a written notice to proceed with acquisition of such lands,easements,and rights-of-way. Prior to the end of the period of construction, the Non-Federal Sponsor shall acquire all lands, easements, and rights-of-way set forth in such descriptions. Furthermore, prior to issuance of the solicitation for each construction contract, the Non-Federal Sponsor shall provide the Government with authorization for entry to all lands, easements, and rights-of-way the Government determines the Non-Federal Sponsor must provide for that contract. For so long as the Project remains authorized, the Non-Federal Sponsor shall ensure that lands, easements, and rights-of-way that the Government determines to be required for the operation and maintenance of the Project and that were provided by the Non-Federal PROJECT COOPERATION AGREEMENT—Page 9 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) Sponsor are retained in public ownership for uses compatible with the authorized purposes of the Project. B. The Government, after consultation with the Non-Federal Sponsor, shall determine the improvements required on lands, easements, and rights-of-way to enable the proper disposal of dredged or excavated material associated with the construction,operation, and maintenance of the Project. The Government shall delineate which of the improvements are required for the ecosystem restoration features and which are required for the recreation features. Such improvements may include,but are not necessarily limited to, retaining dikes, wasteweirs, bulkheads, embankments, monitoring features, stilling basins, and de-watering pumps and pipes. The Government in a timely manner shall provide the Non-Federal Sponsor with general written descriptions of such improvements in detail sufficient to enable the Non-Federal Sponsor to fulfill its obligations under this paragraph, and shall provide the Non-Federal Sponsor with a written notice to proceed with construction of such improvements. Prior to the end of the period of construction,the Non- Federal Sponsor shall provide all improvements set forth in such descriptions. Furthermore, prior to issuance of the solicitation for each Government construction contract, the Non- Federal Sponsor shall prepare plans and specifications for all improvements the Government determines to be required for the proper disposal of dredged or excavated material under that contract, submit such plans and specifications to the Government for approval, and provide such improvements in accordance with the approved plans and specifications. C. The Government, after consultation with the Non-Federal Sponsor, shall determine the relocations necessary for the construction, operation, and maintenance of the Project, including those necessary to enable the removal of borrow materials and the proper disposal of dredged or excavated material. The Government shall delineate which of the necessary relocations are required for the ecosystem restoration features and which are required for the recreation features. The Government in a timely manner shall provide the Non-Federal Sponsor with general written descriptions, including maps as appropriate, of such relocations in detail sufficient to enable the Non-Federal Sponsor to fulfill its obligations under this paragraph, and shall provide the Non-Federal Sponsor with a written notice to proceed with such relocations. Prior to the end of the period of construction, the Non-Federal Sponsor shall perform or ensure the performance of all relocations as set forth in such descriptions. Furthermore,prior to issuance of the solicitation for each Government construction contract, the Non-Federal Sponsor shall prepare or ensure the preparation of plans and specifications for, and perform or ensure the performance of, all relocations the Government determines to be necessary for that contract. D. The Non-Federal Sponsor in a timely manner shall provide the Government with such documents as are sufficient to enable the Government to determine the value of any contribution provided pursuant to paragraphs A.,B., or C. of this Article. Upon receipt of such documents the Government, in accordance with Article IV of this Agreement and in a timely manner, shall determine the value of such contribution, include such value in total PROJECT COOPERATION AGREEMENT—Page 10 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) project costs, and afford credit for such value toward the Non-Federal Sponsor's share of total project costs. E. The Non-Federal Sponsor shall comply with the applicable provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law 91-646, as amended by Title IV of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (Public Law 100-17), and the Uniform Regulations contained in 49 C.F.R. Part 24, in acquiring lands, easements, and rights-of-way required for the construction, operation, and maintenance of the Project, including those necessary for relocations, borrow materials, and dredged or excavated material disposal, and shall inform all affected persons of applicable benefits, policies, and procedures in connection with said Act. ARTICLE IV- CREDIT FOR VALUE OF LANDS, RELOCATIONS,AND DISPOSAL AREAS A. The Non-Federal Sponsor shall receive credit toward its share of total project ecosystem restoration costs and, if applicable, total project recreation costs for the value of the lands, easements, rights-of-way, and suitable borrow and dredged or excavated material disposal areas that the Non-Federal Sponsor must provide pursuant to Article III of this Agreement, and for the value of the relocations that the Non-Federal Sponsor must perform or for which it must ensure performance pursuant to Article III of this Agreement for ecosystem restoration features. The Non-Federal Sponsor also shall receive credit toward its share of total project recreation costs for the value of lands, easements, rights-of-way, and suitable borrow and dredged or excavated material disposal areas that the Non- Federal sponsor may be required to provide pursuant to Article II of this Agreement, and for the value of the relocations that the Non-Federal Sponsor may be required to perform or for which it may be required to ensure performance pursuant to Article II of this Agreement for the recreation features. However, the Non-Federal Sponsor shall not receive credit for the value of any lands, easements, rights-of-way, relocations, or borrow and dredged or excavated material disposal areas that have been provided previously as an item of cooperation for another Federal project. The Non-Federal Sponsor also shall not receive credit for the value of lands, easements, rights-of-way, relocations, or borrow and dredged or excavated material disposal areas to the extent that such items are provided using Federal funds unless the Federal granting agency verifies in writing that such credit is expressly authorized by statute. B. For the sole purpose of affording credit in accordance with this Agreement, the value of lands, easements, and rights-of-way, including those necessary for relocations, borrow materials, and dredged or excavated material disposal, shall be the fair market value of the real property interests, plus certain incidental costs of acquiring those interests, as determined in accordance with the provisions of this paragraph. PROJECT COOPERATION AGREEMENT—Page 11 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) 1. Date of Valuation The fair market value of lands, easements, or rights- of-way owned by the Non-Federal Sponsor on the effective date of this Agreement shall be the fair market value of such real property interests as of the date the Non-Federal Sponsor provides the Government with authorization for entry thereto. The fair market value of lands, easements, or rights-of-way acquired by the Non-Federal Sponsor after the effective date of this Agreement shall be the fair market value of such real property interests at the time the interests are acquired. 2. General Valuation Procedure. Except as provided in paragraph B.3. of this Article, the fair market value of lands, easements, or rights-of-way shall be determined in accordance with paragraph B.2.a. of this Article, unless thereafter a different amount is determined to represent fair market value in accordance with paragraph B.2.b. of this Article. a. The Non-Federal Sponsor shall obtain, for each real property interest, an appraisal that is prepared by a qualified appraiser who is acceptable to the Non-Federal Sponsor and the Government. The appraisal must be prepared in accordance with the applicable rules of just compensation, as specified by the Government. The fair market value shall be the amount set forth in the Non-Federal Sponsor's appraisal, if such appraisal is approved by the Government. In the event the Government does not approve the Non- Federal Sponsor's appraisal, the Non-Federal Sponsor may obtain a second appraisal, and the fair market value shall be the amount set forth in the Non-Federal Sponsor's second appraisal, if such appraisal is approved by the Government. In the event the Government does not approve the Non-Federal Sponsor's second appraisal, or the Non-Federal Sponsor chooses not to obtain a second appraisal,the Government shall obtain an appraisal, and the fair market value shall be the amount set forth in the Government's appraisal, if such appraisal is approved by the Non-Federal Sponsor. In the event the Non-Federal Sponsor does not approve the Government's appraisal, the Government, after consultation with the Non-Federal Sponsor, shall consider the Government's and the Non-Federal Sponsor's appraisals and determine an amount based thereon, which shall be deemed to be the fair market value. b. Where the amount paid or proposed to be paid by the Non-Federal Sponsor for the real property interest exceeds the amount determined pursuant to paragraph B.2.a. of this Article, the Government, at the request of the Non-Federal Sponsor, shall consider all factors relevant to determining fair market value and, in its sole discretion, after consultation with the Non-Federal Sponsor, may approve in writing an amount greater than the amount determined pursuant to paragraph B.2.& of this Article, but not to exceed the amount actually paid or proposed to be paid. If the Government approves such an amount, the fair market value shall be the lesser of the approved amount or the amount paid by the Non-Federal Sponsor, but no less than the amount determined pursuant to paragraph B.2.a. of this Article. PROJECT COOPERATION AGREEMENT—Page 12 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) 3. Eminent Domain Valuation Procedure. For lands, easements, or rights- of-way acquired by eminent domain proceedings instituted after the effective date of this Agreement, the Non-Federal Sponsor shall, prior to instituting such proceedings, submit to the Government notification in writing of its intent to institute such proceedings and an appraisal of the specific real property interests to be acquired in such proceedings. The Government shall have 60 days after receipt of such a notice and appraisal within which to review the appraisal,if not previously approved by the Government in writing. a. If the Government previously has approved the appraisal in writing, or if the Government provides written approval of, or takes no action on, the appraisal within such 60-day period, the Non-Federal Sponsor shall use the amount set forth in such appraisal as the estimate of just compensation for the purpose of instituting the eminent domain proceeding. b. If the Government provides written disapproval of the appraisal, including the reasons for disapproval, within such 60-day period, the Government and the Non-Federal Sponsor shall consult in good faith to promptly resolve the issues or areas of disagreement that are identified in the Government's written disapproval. If,after such good faith consultation, the Government and the Non-Federal Sponsor agree as to an appropriate amount, then the Non-Federal Sponsor shall use that amount as the estimate of just compensation for the purpose of instituting the eminent domain proceeding. If, after such good faith consultation, the Government and the Non-Federal Sponsor cannot agree as to an appropriate amount, then the Non-Federal Sponsor may use the amount set forth in its appraisal as the estimate of just compensation for the purpose of instituting the eminent domain proceeding. c. For lands, easements, or rights-of-way acquired by eminent domain proceedings instituted in accordance with sub-paragraph B.3. of this Article, fair market value shall be either the amount of the court award for the real property interests taken, to the extent the Government determined such interests are required for the construction, operation, and maintenance of the Project, or the amount of any stipulated settlement or portion thereof that the Government approves in writing. 4. Incidental Costs. For lands, easements, or rights-of-way acquired by the Non-Federal Sponsor within a five-year period preceding the effective date of this Agreement,or at any time after the effective date of this Agreement,the value of the interest shall include the documented incidental costs of acquiring the interest, as determined by the Government, subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness,allocability,and allowability of costs. Such incidental costs shall include, but not necessarily be limited to, closing and title costs, appraisal costs, survey costs, attorney's fees, plat maps,and mapping costs, as well as the actual amounts expended for payment of any Public Law 91-646 relocation assistance benefits provided in accordance with Article III.E. of this Agreement. PROJECT COOPERATION AGREEMENT—Page 13 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) C. After consultation with the Non-Federal Sponsor, the Government shall determine the value of relocations in accordance with the provisions of this paragraph. 1. For a relocation other than a highway,the value shall be only that portion of relocation costs that the Government determines is necessary to provide a functionally equivalent facility, reduced by depreciation, as applicable, and by the salvage value of any removed items. 2. For a relocation of a highway, the value shall be only that portion of relocation costs that would be necessary to accomplish the relocation in accordance with the design standard that the State of Washington would apply under similar conditions of geography and traffic load,reduced by the salvage value of any removed items. 3. Relocation costs shall include, but not necessarily be limited to, actual costs of performing the relocation; planning, engineering and design costs; supervision and administration costs; and documented incidental costs associated with performance of the relocation, but shall not include any costs due to betterments, as determined by the Government, nor any additional cost of using new material when suitable used material is available. Relocation costs shall be subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness,allocability,and allowability of costs. 4. Any credit afforded for the value of relocations performed within the Project boundaries is subject to satisfactory compliance with applicable Federal labor laws covering non-Federal construction, including, but not limited to, 40 U.S.C. 3141- 3148 and 40 U.S.C. 3701-3708 (revising, codifying and enacting without substantive change the provisions of the Davis-Bacon Act (formerly 40 U.S.C. 276a et seq.), the Contract Work Hours and Safety Standards Act (formerly 40 U.S.C. 327 et seq.) and the Copeland Anti-Kickback Act (formerly 40 U.S.C. 276c)). Crediting may be withheld, in whole or in part, as a result of the Non-Federal Sponsor's failure to comply with its obligations under these laws. D. The value of the improvements made to lands, easements, and rights-of-way for the proper disposal of dredged or excavated material shall be the costs of the improvements, as determined by the Government, subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness,allocability, and allowability of costs. Such costs shall include, but not necessarily be limited to, actual costs of providing the improvements; planning, engineering and design costs; supervision and administration costs; and documented incidental costs associated with providing the improvements, but shall not include any costs due to betterments,as determined by the Government. PROJECT COOPERATION AGREEMENT—Page 14 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) ARTICLE V-PROJECT COORDINATION TEAM A. To provide for consistent and effective communication, the Non-Federal Sponsor and the Government, not later than 30 days after the effective date of this Agreement, shall appoint named senior representatives to a Project Coordination Team. Thereafter,the Project Coordination Team shall meet regularly until the end of the period of construction. The Government's Project Manager and a counterpart named by the Non- Federal Sponsor shall co-chair the Project Coordination Team. B. The Government's Project Manager and the Non-Federal Sponsor's counterpart shall keep the Project Coordination Team informed of the progress of construction and of significant pending issues and actions, and shall seek the views of the Project Coordination Team on matters that the Project Coordination Team generally oversees. C. Until the end of the period of construction, the Project Coordination Team shall generally oversee the Project, including issues related to design; plans and specifications; scheduling; real property and relocation requirements; real property acquisition; contract awards and modifications; contract costs; the application of and compliance with 40 U.S.C. 3141-3148 and 40 U.S.C. 3701-3708 (revising, codifying and enacting without substantive change the provisions of the Davis-Bacon Act (formerly 40 U.S.C. 276a et seq.), the Contract Work Hours and Safety Standards Act (formerly 40 U.S.C. 327 et seq.) and the Copeland Anti-Kickback Act (formerly 40 U.S.C. 276c)) for relocations; the Government's cost projections; final inspection of the entire Project or functional portions of the Project; requirements of the monitoring; implementation of any adaptive management changes;preparation of the proposed OMRR&R Manual; anticipated requirements and needed capabilities for performance of operation, maintenance, repair, replacement,and rehabilitation of the Project;and other related matters. This oversight shall be consistent with a project management plan developed by the Government after consultation with the Non-Federal Sponsor. D. The Project Coordination Team may make recommendations that it deems warranted to the District Engineer on matters that the Project Coordination Team generally oversees, including suggestions to avoid potential sources of dispute. The Government in good faith shall consider the recommendations of the Project Coordination Team. The Government, having the legal authority and responsibility for construction of the Project, has the discretion to accept, reject, or modify the Project Coordination Teams recommendations. E. The costs of participation in the Project Coordination Team shall be included in total project costs and cost shared in accordance with the provisions of this Agreement. PROJECT COOPERATION AGREEMENT—Page 15 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) ARTICLE VI-METHOD OF PAYMENT A. The Govemment shall maintain current records of contributions provided by the parties and current projections of total project costs and costs due to betterments. At least quarterly,the Government shall provide the Non-Federal Sponsor with a report setting forth all contributions provided to date and the current projections of total project costs,total project ecosystem restoration costs, total project recreation costs, and total costs due to betterments; of the maximum amount of total project costs determined in accordance with Article XIX of this Agreement, of the components of total project costs, of each party's share of total project costs, of the Non-Federal Sponsor's total cash contributions required in accordance with Articles II.B., II.D., H.E. and II.F. of this Agreement, and of the non- Federal proportionate share. On the effective date of this Agreement, total project costs are projected to be $1,065,000.00, total ecosystem restoration costs are estimated to be $1,055,000.00, total project recreation costs are estimated to be $10,000.00, the Non- Federal Sponsor's cash contribution required under Article H.D. of this Agreement is projected to be $226,750.00, and the Non-Federal Sponsor's cash contribution required under Article H.E. of this Agreement is projected to be $5,000.00. Such amounts are estimates subject to adjustment by the Government and are not to be construed as the total financial responsibilities of the Government and the Non-Federal Sponsor. B. The Non-Federal Sponsor shall provide the cash contribution required under Articles II.D., HE. and II.F. of this Agreement in accordance with the following provisions of this paragraph: Not less than 30 calendar days prior to the scheduled date for issuance of the solicitation for the first construction contract, the Government shall notify the Non- Federal Sponsor in writing of such scheduled date and the funds the Government determines to be required from the Non-Federal Sponsor to meet its projected cash contribution under Articles II.D., HE. and II.F. of this Agreement. Not later than such scheduled date, the Non-Federal Sponsor shall provide the Govemment with the full amount of the required funds by delivering a check payable to "FAO, USAED, Seattle District" to the District Engineer, or verifying to the satisfaction of the Govemment that the Non-Federal Sponsor has deposited the required funds in an escrow or other account acceptable to the Government, with interest accruing to the Non-Federal Sponsor, or presenting the Government with an irrevocable letter of credit acceptable to the Government for the required funds, or providing an Electronic Funds Transfer of the required funds in accordance with procedures established by the Government. The Government shall draw from the funds provided by the Non-Federal Sponsor such sums as the Government deems necessary to cover: (a) the non-Federal proportionate share of financial obligations for construction incurred prior to the commencement of the period of construction; and (b) the non-Federal proportionate share of financial obligations for construction as they are incurred during the period of construction. In the event the Govemment determines that the Non- Federal Sponsor must provide additional funds to meet the Non-Federal Sponsor's cash contribution, the Government shall notify the Non-Federal Sponsor in writing of the additional funds required. Within 60 calendar days thereafter, the Non-Federal Sponsor PROJECT COOPERATION AGREEMENT—Page 16 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) shall provide the Government with the full amount of the additional required funds through any of the payment mechanisms specified above. C. In advance of the Government incurring any financial obligation associated with additional work under Article II.B.or II.F. of this Agreement,the Non-Federal Sponsor shall provide the Government with the full amount of the funds required to pay for such additional work through any of the payment mechanisms specified in Article VI.B. of this Agreement. The Government shall draw from the funds provided by the Non-Federal Sponsor such sums as the Government deems necessary to cover the Government's financial obligations for such additional work as they are incurred. In the event the Government determines that the Non-Federal Sponsor must provide additional funds to meet its cash contribution, the Government shall notify the Non-Federal Sponsor in writing of the additional funds required and provide an explanation of why additional funds are required. Within 30 calendar days thereafter, the Non-Federal Sponsor shall provide the Government with the full amount of the additional required funds through any of the payment mechanisms specified in Article VI.B. of this Agreement. D. Upon completion of the Project or termination of this Agreement, and upon resolution of all relevant claims and appeals, the Government shall conduct a final accounting and furnish the Non-Federal Sponsor with the results of the final accounting. The final accounting shall determine total project costs, total project ecosystem restoration costs, total project recreation costs, each party's contribution provided thereto, and each party's required share thereof. The final accounting also shall determine costs due to betterments and the Non-Federal Spomfs cash contribution provided pursuant to Article II.B. and II.F. of this Agreement. 1. In the event the final accounting shows that the total contribution provided by the Non-Federal Sponsor is less than its required share of total ecosystem restoration costs and total project recreation costs plus costs due to any betterments provided in accordance with Article II.B. of this Agreement,the Non-Federal Sponsor shall, no later than 90 calendar days after receipt of written notice, make a cash payment to the Government of whatever sum is required to meet the Non-Federal Sponsor's required share of total project costs plus costs due to any betterments provided in accordance with Article H.B. of this Agreement by delivering a check payable to "FAO, USAED,SEATTLE DISTRICT," to the District Engineer or providing an Electronic Funds Transfer in accordance with procedures established by the Government. 2. In the event the final accounting shows that the total contribution provided by the Non-Federal Sponsor exceeds its required share of total project ecosystem restoration costs and total project recreation costs plus costs due to any betterments provided in accordance with Article II.B. of this Agreement, the Government shall, subject PROJECT COOPERATION AGREEMENT—Page 17 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) to the availability of funds, refund the excess to the Non-Federal Sponsor no later than 90 calendar days after the final accounting is complete in accordance with the terms of this Agreement. In the event existing funds are not available to refund the excess to the Non- Federal Sponsor, the Government shall seek such appropriations as are necessary to make the refund. ARTICLE VII-DISPUTE RESOLUTION As a condition precedent to a party bringing any suit for breach of this Agreement, that party must first notify the other party in writing of the nature of the purported breach and seek in good faith to resolve the dispute through negotiation. If the parties cannot resolve the dispute through negotiation, they may agree to a mutually acceptable method of non-binding alternative dispute resolution with a qualified third party acceptable to both parties. The parties shall each pay 50 percent of any costs for the services provided by such a third party as such costs are incurred. The existence of a dispute shall not excuse the parties from performance pursuant to this Agreement. ARTICLE VIII - OPERATION, MAINTENANCE, REPAIR, REPLACEMENT, AND REHABILITATION (OMRR&R) A. Upon notification in accordance with Article II.C. of this Agreement and for so long as the Project remains authorized,the Non-Federal Sponsor shall operate, maintain, repair, replace, and rehabilitate the entire Project or the functional portion of the Project, at no cost to the Government, in a manner compatible with the Project's authorized purposes and in accordance with applicable Federal and State laws as provided in Article XI of this Agreement and specific directions prescribed by the Government in the OMRR&R Manual and any subsequent amendments thereto. B. The Non-Federal Sponsor hereby gives the Government a right to enter, at reasonable times and in a reasonable manner, upon property that the Non-Federal Sponsor owns or controls for access to the Project for the purpose of inspection and, if necessary, for the purpose of completing, operating, maintaining, repairing, replacing, or rehabilitating the Project. If an inspection shows that the Non-Federal Sponsor for any reason is failing to perform its obligations under this Agreement, the Government shall send a written notice describing the non-performance to the Non-Federal Sponsor. If, after 30 calendar days from receipt of notice, the Non-Federal Sponsor continues to fail to perform, then the Government shall have the right to enter, at reasonable times and in a reasonable manner, upon property that the Non-Federal Sponsor owns or controls for access to the Project for the purpose of completing, operating,maintaining, repairing,replacing, or rehabilitating the Project. No completion, operation, maintenance, repair, replacement, or rehabilitation by PROJECT COOPERATION AGREEMENT—Page 18 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) the Government shall operate to relieve the Non-Federal Sponsor of responsibility to meet the Non-Federal Sponsors obligations as set forth in this Agreement, or to preclude the Government from pursuing any other remedy at law or equity to ensure faithful performance pursuant to this Agreement. ARTICLE IX-INDEMNIFICATION Subject to the provisions of Article XX of this Agreement,the Non-Federal Sponsor shall hold and save the Government free from all damages arising from the construction, operation, maintenance, repair, replacement, and rehabilitation of the Project and any Project-related betterments, except for damages due to the fault or negligence of the Government or its contractors. ARTICLE X-MAINTENANCE OF RECORDS AND AUDIT A. Not later than 60 calendar days after the effective date of this Agreement,the Government and the Non-Federal Sponsor shall develop procedures for keeping books, records, documents, and other evidence pertaining to costs and expenses incurred pursuant to this Agreement. These procedures shall incorporate, and apply as appropriate, the standards for financial management systems set forth in the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments at 32 C.F.R. Section 33.20. The Government and the Non-Federal Sponsor shall maintain such books, records, documents, and other evidence in accordance with these procedures and for a minimum of three years after the period of construction and resolution of all relevant claims arising therefrom. To the extent permitted under applicable Federal laws and regulations,the Government and the Non-Federal Sponsor shall each allow the other to inspect such books,documents,records,and other evidence. B. Pursuant to 32 C.F.R. Section 33.26,the Non-Federal Sponsor is responsible for complying with the Single Audit Act Amendments of 1996, 31 U.S.C. Sections 7501- 7507, as implemented by Office of Management and Budget (OMB) Circular No. A-133 and Department of Defense Directive 7600.10. Upon request of the Non-Federal Sponsor and to the extent permitted under applicable Federal laws and regulations, the Government shall provide to the Non-Federal Sponsor and independent auditors any information necessary to enable an audit of the Non-Federal Sponsor's activities under this Agreement. The costs of any non-Federal audits performed in accordance with this paragraph shall be allocated in accordance with the provisions of OMB Circulars A-87 and A-133, and such costs as are allocated to the Project shall be included in total project costs and cost shared in accordance with the provisions of this Agreement. PROJECT COOPERATION AGREEMENT—Page 19 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) C. In accordance with 31 U.S.C. Section 7503, the Government may conduct audits in addition to any audit that the Non-Federal Sponsor is required to conduct under the Single Audit Act Amendments of 1996. Any such Government audits shall be conducted in accordance with Government Auditing Standards and the cost principles in OMB Circular No. A-87 and other applicable cost principles and regulations. The costs of Government audits performed in accordance with this paragraph shall be included in total project costs and cost shared in accordance with the provisions of this Agreement. ARTICLE XI -FEDERAL AND STATE LAWS In the exercise of their respective rights and obligations under this Agreement, the Non-Federal Sponsor and the Government agree to comply with all applicable Federal and State laws and regulations, including, but not limited to: Section 601 of the Civil Rights Act of 1964, Public Law 88-352 (42 U.S.C. 2000d) and Department of Defense Directive 5500.11 issued pursuant thereto; Army Regulation 600-7, entitled "Nondiscrimination on the Basis of Handicap in Programs and Activities Assisted or Conducted by the Department of the Army"; and all applicable Federal labor standards requirements including, but not limited to, 40 U.S.C. 3141-3148 and 40 U.S.C. 3701- 3708 (revising, codifying and enacting without substantive change the provisions of the Davis-Bacon Act (formerly 40 U.S.C. 276a et seq.), the Contract Work Hours and Safety Standards Act (formerly 40 U.S.C. 327 et seq.) and the Copeland Anti-Kickback Act (formerly 40 U.S.C. 276c)). ARTICLE XII- RELATIONSHIP OF PARTIES A. In the exercise of their respective rights and obligations under this Agreement, the Government and the Non-Federal Sponsor each act in an independent capacity,and neither is to be considered the officer,agent,or employee of the other. B. In the exercise of its rights and obligations under this Agreement, neither party shall provide, without the consent of the other party, any contractor with a release that waives or purports to waive any rights such other party may have to seek relief or redress against such contractor either pursuant to any cause of action that such other party may have or for violation of any law. ARTICLE XIII -OFFICIALS NOT TO BENEFIT No member of or delegate to the Congress, nor any resident commissioner, shall be admitted to any share or part of this Agreement,or to any benefit that may arise therefrom. PROJECT COOPERATION AGREEMENT—Page 20 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) ARTICLE XIV-TERMINATION OR SUSPENSION A. If at any time the Non-Federal Sponsor fails to fulfill its obligations under Article II.B., II.D., II.E., II.F.,VI,or XVIII.C. of this Agreement,the Assistant Secretary of the Army (Civil Works) shall terminate this Agreement or suspend future performance under this Agreement unless he determines that continuation of work on the Project is in the interest of the United States or is necessary in order to satisfy agreements with any other non-Federal interests in connection with the Project. B. If the Government fails to receive annual appropriations in amounts sufficient to meet Project expenditures for the then-current or upcoming fiscal year, the Government shall so notify the Non-Federal Sponsor in writing, and 60 calendar days thereafter either party may elect without penalty to terminate this Agreement or to suspend future performance under this Agreement. In the event that either party elects to suspend future performance under this Agreement pursuant to this paragraph, such suspension shall remain in effect until such time as the Government receives sufficient appropriations or until either the Government or the Non-Federal Sponsor elects to terminate this Agreement. C. In the event that either party elects to terminate this Agreement pursuant to this Article or Article XV of this Agreement, both parties shall conclude their activities relating to the Project and proceed to a final accounting in accordance with Article VI.D. of this Agreement. D. Any termination of this Agreement or suspension of future performance under this Agreement in accordance with this Article or Article XV of this Agreement shall not relieve the parties of liability for any obligation previously incurred. Any delinquent payment shall be charged interest at a rate, to be determined by the Secretary of the Treasury, equal to 150 per centum of the average bond equivalent rate of the 13-week Treasury bills auctioned immediately prior to the date on which such payment became delinquent, or auctioned immediately prior to the beginning of each additional 3-month period if the period of delinquency exceeds 3 months. ARTICLE XV-HAZARDOUS SUBSTANCES A. After execution of this Agreement and upon direction by the District Engineer, the Non-Federal Sponsor shall perform, or cause to be performed, any investigations for hazardous substances that the Government or the Non-Federal Sponsor determines to be necessary to identify the existence and extent of any hazardous substances regulated under the Comprehensive Environmental Response, Compensation, and Liability Act(hereinafter "CERCLA"),42 U.S.C. Sections 9601-9675,that may exist in, on, or under PROJECT COOPERATION AGREEMENT—Page 21 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) lands, easements, and rights-of-way that the Government determines, pursuant to Article III of this Agreement, to be required for the construction, operation, and maintenance of the Project. However, for lands that the Government determines to be subject to the navigation servitude, only the Government shall perform such investigations unless the District Engineer provides the Non-Federal Sponsor with prior specific written direction, in which case the Non-Federal Sponsor shall perform such investigations in accordance with such written direction. All actual costs incurred by the Non-Federal Sponsor for such investigations for hazardous substances shall be included in total project costs and cost shared in accordance with the provisions of this Agreement, subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness, allocability, and allowability of costs. B. In the event it is discovered through any investigation for hazardous substances or other means that hazardous substances regulated under CERCLA exist in, on, or under any lands,easements,or rights-of-way that the Government determines,pursuant to Article III of this Agreement,to be required for the construction,operation, and maintenance of the Project, the Non-Federal Sponsor and the Government shall provide prompt written notice to each other, and the Non-Federal Sponsor shall not proceed with the acquisition of the real property interests until both parties agree that the Non-Federal Sponsor should proceed. C. The Government and the Non-Federal Sponsor shall determine whether to initiate construction of the Project, or, if already in construction, whether to continue with work on the Project, suspend fixture performance under this Agreement, or terminate this Agreement for the convenience of the Government, in any case where hazardous substances regulated under CERCLA are found to exist in, on,or under any lands, easements,or rights- of-way that the Government deternnes, pursuant to Article III of this Agreement, to be required for the construction, operation, and maintenance of the Project. Should the Government and the Non-Federal Sponsor determine to initiate or continue with construction after considering any liability that may arise under CERCLA, the Non-Federal Sponsor shall be responsible, as between the Government and the Non-Federal Sponsor, for the costs of clean-up and response, to include the costs of any studies and investigations necessary to determine an appropriate response to the contamination. Such costs shall not be considered a part of total project costs. In the event the Non-Federal Sponsor fails to provide any funds necessary to pay for clean up and response costs or to otherwise discharge the Non-Federal Sponsoes responsibilities under this paragraph upon direction by the Government,the Government may,in its sole discretion,either terminate this Agreement for the convenience of the Government, suspend future performance under this Agreement, or continue work on the Project. PROJECT COOPERATION AGREEMENT—Page 22 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) D. The Non-Federal Sponsor and the Government shall consult with each other in accordance with Article V of this Agreement in an effort to ensure that responsible parties bear any necessary clean up and response costs as defined in CERCLA. Any decision made pursuant to paragraph C. of this Article shall not relieve any third party from any liability that may arise under CERCLA. E. As between the Government and the Non-Federal Sponsor, the Non-Federal Sponsor shall be considered the operator of the Project for purposes of CERCLA liability. To the maximum extent practicable, the Non-Federal Sponsor shall operate, maintain, repair, replace, and rehabilitate the Project in a manner that will not cause liability to arise under CERCLA. ARTICLE XVI-NOTICES A. Any notice, request, demand, or other communication required or permitted to be given under this Agreement shall be deemed to have been duly given if in writing and either delivered personally or by telegram or mailed by first-class, registered, or certified mail,as follows: If to the Non-Federal Sponsor: Public Works Department City of Kent 220 Fourth Avenue S. Kent,WA 98032-5895 If to the Government: Chief,Planning Branch, PPMD Seattle District,Corps of Engineers P.O. Box 3755 Seattle,WA 98124-3755 B. A party may change the address to which such communications are to be directed by giving written notice to the other party in the manner provided in this Article. C. Any notice, request, demand, or other communication made pursuant to this Article shall be deemed to have been received by the addressee at the earlier of such time as it is actually received or seven calendar days after it is mailed. PROJECT COOPERATION AGREEMENT—Page 23 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) ARTICLE XVII - CONFIDENTIALITY To the extent permitted by the laws governing each parry, the parties agree to maintain the confidentiality of exchanged information when requested to do so by the providing party. ARTICLE XVIII-HISTORIC PRESERVATION A. The costs of identification, survey and evaluation of historic properties shall be included in total project costs and cost shared in accordance with the provisions of this Agreement. B. As specified in Section 7(a) of Public Law 93-291 (16 U.S.C. Section 469c(a)), the costs of archeological data recovery activities associated with historic preservation shall be bome entirely by the Government and shall not be included in total project costs, up to the statutory limit of one percent of the total amount authorized to be appropriated for the Authorized Project. C. The Government shall not incur costs for mitigation and data recovery that exceed the statutory one percent limit specified in paragraph B. of this Article unless and until the Assistant Secretary of th@ Army (Civil Works) has waived that limit (and the Secretary of the Interior has concurred in the waiver) in accordance with Section 208(3) of Public Law 96-515 (16 U.S.C. Section 469c-2(3)). Any costs of mitigation and data recovery that exceed the one percent limit shall not be included in total project costs, but shall be cost shared between the Non-Federal Sponsor and the Government in accordance with the terms of this Agreement. ARTICLE XIX- SECTION 902 PROJECT COST LIMITS A. The Non-Federal Sponsor understands that Section 902 of the Water Resources Development Act of 1986, Public Law 99-662, as amended (33 U.S.C. 2280) establishes the maximum total project costs for the Authorized Project, of which the Project is a separable element. On the effective date of this Agreement,the maximum total project costs for the Authorized Project are estimated to be $153,715,320, as calculated in accordance with Appendix G of Engineer Regulation 1105-2-100, using October 1, 2003 price levels, and including allowances for projected future inflation. The Government shall adjust such maximum total project costs for the Authorized Project,in accordance with said Section 902,when necessary. PROJECT COOPERATION AGREEMENT—Page 24 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) B. Notwithstanding any other provision of this Agreement, the Government shall not incur a new financial obligation or expenditure for the Project, or include in total project costs for the Project any additional contribution provided by the Non-Federal Sponsor, if such obligation, expenditure or additional contribution would cause the sum of total project costs for the Project and the cumulative total project costs for all other separable elements of the Authorized Project, to exceed the maximum total project costs for the Authorized Project, established in accordance with said Section 902, unless otherwise authorized by law. ARTICLE XX - OBLIGATIONS OF FUTURE APPROPRIATIONS A. Nothing herein shall constitute, nor be deemed to constitute, an obligation of future appropriations by the City of Kent of the State of Washington, where creating such an obligation would be inconsistent with R.C.W. 35A.33.120, the Constitution of the State of Washington, or the Kent City Code. B. The Non-Federal Sponsor intends to satisfy its obligations under this Agreement. The Non-Federal Sponsor shall include in its budget request or otherwise propose, for each fiscal period, appropriations sufficient to cover the Non-Federal Sponsor's obligations under this Agreement for each biennium, and will use all reasonable and lawful means to secure the appropriations for that biennium sufficient to make the payments necessary to fulfill its obligations hereunder. The Non-Federal Sponsor reasonably believes that funds in amounts sufficient to discharge these obligations can and will lawfully be appropriated and made available for this purpose. In the event the budget or other means of appropriations does not provide funds in sufficient amounts to discharge these obligations, the Non-Federal Sponsor shall use its best efforts to satisfy any requirements for payments under this Agreement from any other source of funds legally available for this purpose. Further, if the Non-Federal Sponsor is unable to satisfy its obligations hereunder, the Government may exercise any legal rights it has to protect the Government's interests related to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement, which shall become effective upon the date it is signed by the Seattle District Commander. DEPARTMENT OF THE ARMY KENT,WASHINGTON: BY: BY: Colonel Debra M.L is Jim White Commander Mayor Sestttle District Ci of Kent DATE: DATE: PROJECT COOPERATION AGREEMENT—Page 25 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent) CERTIFICATE OF AUTHORITY I,Arthur Fitzpatrick,Deputy City Attorney, do hereby certify that I am the principal legal officer of the City of Kent, Washington, that the City of Kent, Washington is a legally constituted public body with full authority and legal capability to perform the terms of the Agreement between the Department of the Army and the City of Kent in connection with the Meridian Valley Creek Ecosystem Restoration Project, and to pay damages in accordance with the terms of this Agreement, if necessary, in the event of the failure to perform, as required by Section 221 of Public Law 91-611 (42 U.S.C. Section 1962d-5b), and that the persons who have executed this Agreement on behalf of the City of Kent have acted within their statutory authority. IN WITNESS WHEREOF,I have made and executed this certification this day of 2004. ur"Pat" F atrick Deputy City Attorney PROJECT COOPERATION AGREEMENT—Page 26 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Deparhnent of the Army and the City of Kent) CERTIFICATION REGARDING LOBBYING The undersigned certifies,to the best of his or her knowledge and belief that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of " Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. i (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than$10,000 and not more than $100,000 for each such failure. KENT, WASHINGTON T / Mayor Jolte:PROJECT COOPERATION AGREEMENT—Page 27 MERIDIAN VALLEY CREEK ECOSYSTEM RESTORATION PROJECT (between The Department of the Army and the City of Kent)