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HomeMy WebLinkAboutPW04-350 - Original - Puget Sound Energy, Inc. - 1st Ave and 4th Ave Joint Utility Trench Project - 10/14/2004 i Records MIp reme KENO W♦8MIN6TOM Document 14 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, if you have questions, please contact City Clerks Office. Vendor Name: Vendor Number: JD Edwards Number Contract Number. Do 41 35a This is assigned by Deputy City Clerk Description: S °✓'S trv�t s►•� ��-ee �, 7— Detail: lecr-tee �'+� �• � '� y►no�q✓w✓+� t��I�S e� �S n� �rK /Q+A+ w?• Project Name: 15 � i- qT ii Ave 4r-e t J y 8i L -Len Contract Effective Date: Jr'l o�-f Termination Date: 3d o T Contract Renewal Notice (Days): Number of days required notice for termination or renewal or amendment Contract Manager: w2�' a It Department: Abstract: 5 Public%RecordsManagement\Forms\Contractcover\ADCL7832 07/02 SCHEDULE 74 UNDERGROUND CONVERSION Project Construction Agreement Project Name: 1 at Avenue North and 4"'Avenue North Conversion Project Number: PSE#101021657 THIS Agreement, dated as of this_day of 200 is made by and between CITY OF KENT, a Municipal Corporation(the"Government Entity'), and PUGET SOUND ENERGY, Inc., a Washington Corporation (the"Company") RECITALS A. The Company is a public service company engaged in the sale and distribution of electric energy, and pursuant to its franchise or other rights from the Government Entity, currently locates its electric distribution facilities within the jurisdictional boundaries of the Government Entity. B. The Government Entity has determined that it is necessary to replace the existing overhead electric distribution system within the area specified in the Project Plan (as defined below) (the "Conversion Area")with a comparable underground electric distribution system, all as more specifically described in the Project Plan (the"Conversion Project"). C. The Government Entity and the Company have previously entered into a Project Design Agreement dated as of the 19"'day of April,2004(the"Design Agreement"), pursuant to which the parties completed certain engineering design,cost assessment, operating rights planning and other preliminary work relating to the Conversion Project and, in connection with that effort, developed the Project Plan. D. The Government Entity and the Company wish to execute this written contract in accordance with Schedule 74 of the Company's Electric Tariff G ("Schedule 74")to govern the completion of the Conversion Project,which both parties intend shall qualify as an underground conversion under the terms of Schedule 74. AGREEMENT The Government Entity and the Company therefore agree as follows: 1. Definitions. (a) Unless specifically defined otherwise herein, all terms defined in Schedule 74 shall have the same meanings when used in this Agreement, including,without limitation,the following- I) Cost of Conversion; ii) Public Thoroughfare; iii) Temporary Service; iv) Trenching and Restoration; v) Underground Distribution System; and vi) Underground Service Lines. (b) "Company-Initiated Upgrade"shall mean any feature of the Underground Distribution System which is required by the Company and is not reasonably required to make the Underground Distribution System comparable to the overhead distribution system being replaced. For purposes of the foregoing,a"comparable"system shall include, unless the Parties otherwise agree, the number of empty ducts (not to exceed two(2), typically having a diameter of 6"or less) Construction Agreement,Attachment"B"to Schedule 74, Pagel City of Kent: 1�`Avenue North and 0 Avenue North Conversion PSE Notification#10530293 of such diameter and number as may be specified and agreed upon in the Project Plan necessary to replicate the load-carrying capacity(system amperage class)of the overhead system being replaced. (c) "Estimated Reimbursable Private Conversion Costs"shall mean the Company's good faith estimate of the Reimbursable Private Conversion Costs, as specified in the Project Plan and as changed and adjusted from time to time in accordance with Section 6, below. (d) "Estimated Reimbursable Temporary Service Costs"shall mean the Company's good faith estimate of the Reimbursable Temporary Service Costs,as specified in the Project Plan and as changed and adjusted from time to time in accordance with Section 6, below. (a) "Estimated Reimbursable Upgrade Costs"shall mean the Company's good faith estimate of the Reimbursable Upgrade Costs, as specified in the Project Plan and as changed and adjusted from time to time in accordance with Section 6, below. (f) "Estimated Shared Company Costs"shall mean the Company's good faith estimate of the Shared Company Costs,as specified in the Project Plan and as changed and adjusted from time to time in accordance with Section 6, below. (g) "Estimated Shared Government Costs"shall mean the Government Entity's good faith estimate of the Shared Government Costs, as specked in the Project Plan and as changed and adjusted from time to time in accordance with Section 6, below. (h) "Government-Requested Upgrade"shall mean any feature of the Underground Distribution System which is requested by the Government Entity and is not reasonably required to make the Underground Distribution System comparable to the overhead distribution system being replaced. For purposes of the foregoing, any empty ducts installed at the request of the Government Entity shall be a Government-Requested Upgrade. (i) "Party"shall mean either the Company, the Government Entity, or both. �) "Private Property Conversion"shalt mean that portion, if any,of the Conversion Project for which the existing overhead electric distribution system is located,as of the date determined in accordance with Schedule 74, (1)outside of the Public Thoroughfare, or(ii) pursuant to rights not derived from a franchise previously granted by the Government Entity or pursuant to rights not otherwise previously granted by the Government Entity. (k) "Project Plan"shall mean the project plan developed by the Parties under the Design Agreement and attached hereto as Exhibit A,as the same may be changed and amended from time to time in accordance with Section 6, below. The Project Plan includes,among other things, (i)a detailed description of the Work that is required to be performed by each Party and any third party, (ii)the applicable requirements and specifications for the Work, (iii)a description of the Operating Rights that are required to be obtained by each Party for the Conversion Project(and the requirements and specifications with respect thereto), (N)an itemization and summary of the Estimated Shared Company Costs, Estimated Shared Government Costs, Estimated Reimbursable Private Conversion Costs(if any), Estimated Reimbursable Temporary Service Costs (if any)and Estimated Reimbursable Upgrade Costs(if any), and (v)the Work Schedule. (1) "Operating Rights"shall mean sufficient space and legal rights for the construction, operation, repair,and maintenance of the Underground Distribution System. (m) "Reimbursable Private Conversion Costs"shall mean (i)all Costs of Conversion, if any, incurred by the Company which are attributable to a Private Property Conversion, less (ii)the distribution pole replacement costs (if any)that would be avoided by the Company on account of such Private Property Conversion, as determined consistent with the applicable Company distribution facilities Construction A.greement,Attachment"B"to Schedule 74, Page 2 City of Kent: 1 Avenue North and 4t'Avenue North Conversion PSE Notification#10530293 replacement program, plus(iii)just compensation as provided by law for the Company's interests in real property on which such existing overhead distribution system was located prior to conversion; provided that the portion of the Reimbursable Private Conversion Costs attributable to the Costs of Conversion under subparagraph (i)of this paragraph shall not exceed the Estimated Reimbursable Private Conversion Costs without the prior written authorization of the Government Entity. (n) "Reimbursable Temporary Service Costs"shall mean all costs incurred by the Company which are attributable to (1)any facilities installed as part of the Conversion Project to provide Temporary Service,as provided for in Schedule 74,and (ii)the removal of any facilities installed to provide Temporary Service(less salvage value of removed equipment); provided that the Reimbursable Temporary Service Costs shall not exceed the Estimated Reimbursable Temporary Service Costs without the prior written authorization of the Government Entity. (o) "Reimbursable Upgrade Costs"shall mean all Costs of Conversion incurred by the Company which are attributable to any Government-Requested Upgrade; provided that the Reimbursable Upgrade Costs shall not exceed the Estimated Reimbursable Upgrade Costs without the prior written authorization of the Government Entity. (p) "Shared Company Costs"shall mean all Costs of Conversion(other than Reimbursable Upgrade Costs, Reimbursable Private Conversion Costs and Reimbursable Temporary Service Costs) incurred by the Company in connection with the Conversion Project, provided, however,that the Shared Company Costs shall not exceed the Estimated Shared Company Costs without the prior written authorization of the Government Entity. For the avoidance of doubt, the "Shared Company Costs"shall, as and to the extent specified in the Design Agreement, include the actual, reasonable costs to the Company for the"Design Work" performed by the Company under the Design Agreement. (q) "Shared Government Costs"shall mean all Costs of Conversion incurred by the Government Entity in connection with (1)any duct and vault installation Work which the Parties have specified in the Project Plan is to be performed by the Government Entity as part of the Government Work, and (ii)the acquisition of any Operating Rights which the Parties have, by mutual agreement, specified in the Project Plan are to be obtained by the Government Entity for the Conversion Project, but only to the extent attributable to that portion of such Operating Rights which is necessary to accommodate the facilities of the Company; provided, however,that the Shared Government Costs shall not exceed the Estimated Shared Government Costs without the prior written authorization of the Company. (r) "Total Shared Costs"shall mean the sum of the Shared Company Costs and the Shared Government Costs. For the avoidance of doubt,the Total Shared Costs shall not include,without limitation, (i)costs to the Government Entity for Trenching and Restoration, or(n)costs associated with any joint use of trenches by other utilities as permitted under Section 3(b). (s) 'Work"shall mean all work to be performed in connection with the Conversion Project, as more specifically described in the Project Plan, including,without limitation, the Company Work(as defined in Section 2(a), below)and the Government Work(as defined in Section 3(a), below). (t) "Work Schedule"shall mean the schedule specified in the Project Plan which sets forth the milestones for completing the Work,as the same may be changed and amended from time to time in accordance with Section 6, below. 2. Oblioations of the Comoanv. (a) Subject to the terms and conditions of this Agreement,the Company shall do the following as specified in, and in accordance with the design and construction specifications and other requirements set forth in,the Project Plan (the"Company Work"): Construction Agreement,Attachment"B"to Schedule 74, Page 3 City of Kent: 1 Avenue North and 4"'Avenue North Conversion PSE Notification#10530293 i) furnish and install an Underground Distribution System within the Conversion Area (excluding any duct and vault installation or other Work which the Parties have specified in the Project Plan is to be performed by the Government Entity); ii) provide a Company inspector on-site at the times specked in the Work Schedule to inspect the performance of any duct and vault installation Work which the Parties have specified in the Project Plan is to be performed by the Government Entity; and ill) upon connection of those persons or entities to be served by the Underground Distribution System and removal of facilities of any other utilities that are connected to the poles of the overhead system, remove the existing overhead system (including associated wires and Company-owned poles)of 15,000 volts or less within the Conversion Area except for Temporary Services. (b) Upon request of the Government Entity,the Company shall provide periodic reports of the progress of the Company Work identifying(i)the Company Work completed to date, (ii)the Company Work yet to be completed,and (iii)an estimate regarding whether the Conversion Project is on target with respect to the Estimated Shared Company Costs, the Estimated Reimbursable Private Conversion Costs(if any), the Estimated Reimbursable Temporary Service Costs(if any), the Estimated Reimbursable Upgrade Costs (if any)and the Work Schedule. (c) Except as otherwise provided in the Company's Electric Tariff G,the Company shall own, operate and maintain all electrical facilities installed pursuant to this Agreement including, but not limited to,the Underground Distribution System and Underground Service Lines. (d) Subject to the terms and conditions of this Agreement, the Company shall perform all Company Work in accordance with the Project Plan,the Work Schedule and this Agreement. 3. Oblications of the Government Entity. (a) Subject to the terms and conditions of this Agreement,the Government Entity shall do the following as specified in,and in accordance with the design and construction specifications and other requirements set forth in,the Project Plan (the"Government Work"). i) provide the Trenching and Restoration; ii) perform the surveying for alignment and grades for ducts and vaults; and iii) perform any duct and vault installation and other Work which the Parties have specified in the Project Plan is to be performed by the Government Entity. (b) Other utilities may be permitted by the Government Entity to use the trenches provided by the Government Entity for the installation of their facilities so long as such facilities or the installation thereof do not interfere(as determined pursuant to the Company's electrical standards)with the Underground Distribution System or the installation or maintenance thereof. Any such use of the trenches by other utilities shall be done subject to and in accordance with the joint trench design specifications and installation drawings set forth or otherwise identified in the Project Plan, and the Government Entity shall be responsible for the coordination of the design and installation of the facilities of the other utilities to ensure compliance with such specifications and drawings. (c) Upon request of the Company,the Government Entity shall provide periodic reports of the progress of the Government Work identifying(i)the Government Work completed to date, (ii)the Government Work yet to be completed,and (iii)an estimate regarding whether the Conversion Project is on target with respect to the Estimated Shared Government Costs and the Work Schedule. (d) The Government Entity shall be responsible for coordinating all work to be performed in connection with the street improvement program within the Conversion Area. Construction Agreement,Attachment"B"to Schedule 74, Page 4 City of Kent; 1 Avenue North and 4th Avenue North Conversion PSE Notification#10530293 (a) Subject to the terms and conditions of this Agreement,the Government Entity shall perform all Government Work in accordance with the Project Plan,the Work Schedule and this Agreement. 4. Work Schedule. (a) The Government Entity and the Company have agreed upon the Work Schedule as set forth in the Project Plan. Changes to the Work Schedule shall be made only in accordance with Section 6, below. (b) Promptly following the execution of this Agreement, and upon completion by the Government Entity of any necessary preliminary work,the Government Entity shall hold a pre-construction meeting involving all participants in the Conversion Project to review project design, coordination requirements,work sequencing and related pre-mobilization requirements. Following the pre- construction meeting, the Government Entity shall give the Company written notice to proceed with the Work at least ten(10)business days prior to the commencement date specified in the Work Schedule. (c) Subject to the terms and conditions of this Agreement, each Party shall perform the Work assigned to it under this Agreement in accordance with the Work Schedule. So long as the Company performs the Company Work in accordance with the Work Schedule, the Company shall not be liable to the Government Entity(or its agents, servants, employees, contractors, subcontractors,or representatives)for any claims, actions,damages, or liability asserted or arising out of delays in the Work Schedule. 5 Location of Facildies. All facilities of the Company installed within the Conversion Area pursuant to this Agreement shall be located,and all related Operating Rights shall be obtained, in the manner set forth in the applicable provisions of Schedule 74,as specified by the Parties in the Project Plan 6. Chances. (a) Either Party may, at any time, by written notice thereof to the other Party, request changes in the Work within the general scope of this Agreement(a"Request for Change"), including, but not limited to: (i)changes in, substitutions for, additions to or deletions of any Work; (u)changes in the specifications, drawings and other requirements in the Project Plan, (iii)changes in the Work Schedule, and (iv)changes in the location, alignment, dimensions or design of items included in the Work. No Request for Change shall be effective and binding upon the Parties unless signed by an authorized representative of each Party. (b) If any change included in an approved Request for Change would cause a change in the cost of, or the time required for, the performance of any part of the Work, an equitable adjustment shall be made in the Estimated Shared Company Costs,the Estimated Shared Government Costs,the Estimated Reimbursable Private Conversion Costs(if any),the Estimated Reimbursable Temporary Service Costs(if any), the Estimated Reimbursable Upgrade Costs (if any)and/or the Work Schedule to reflect such change. The Parties shall negotiate in good faith with the objective of agreeing in writing on a mutually acceptable equitable adjustment. If the Parties are unable to agree upon the terms of the equitable adjustment, either Party may submit the matter for resolution pursuant to the dispute resolution provisions in Section 10, below. (c) The Work Schedule, the Estimated Shared Company Costs,the Estimated Shared Government Costs, the Estimated Reimbursable Private Conversion Costs, the Estimated Reimbursable Temporary Service Costs and/or the Estimated Reimbursable Upgrade Costs shall be further equitably adjusted from time to time to reflect any change in the costs or time required to perform the Work to the extent such change is caused by: (i)any Force Majeure Event under Section 11, below, (ii)the discovery of any condition within the Conversion Area which affects the scope,cost, Construction A reement,Attachment"B"to Schedule 74, Page 5 City of Kent: 1 Avenue North and 4"'Avenue North Conversion PSE Notification#10530293 schedule or other aspect of the Work and was not known byor disclosed to the affected Party prior to the date of this Agreement,or(iii)any change or inaccuracy in any assumptions regarding the scope, cost, schedule or other aspect of the Work which are expressly identified by the Parties in the Project Plan. Upon the request of either Party,the Parties will negotiate in good faith with the objective of agreeing in writing on a mutually acceptable equitable adjustment. If, at any time thereafter,the Parties are unable to agree upon the terms of the equitable adjustment,either Party may submit the matter for resolution pursuant to the dispute resolution provisions in Section 10, below. (d) Notwithstanding any dispute or delay in reaching agreement or arriving at a mutually acceptable equitable adjustment, each Party shall, if requested by the other Party, proceed with the Work in accordance with any approved Request for Change. Any request to proceed hereunder must be accompanied by a written statement setting forth the requesting Party's reasons for rejecting the proposed equitable adjustment of the other Party. 7. Compensation and Payment. (a) Subject to and in accordance with the terms and conditions of this Agreement(including,without limitation,the payment procedures set forth in this Section 7), payment in connection with the Conversion Project and this Agreement shall be as follows: 0 The Total Shared Costs shall be allocated to the Parties in the following percentages: (A)sixty percent(60%)to the Company, and(B)forty percent(40%)to the Government Entity. ii) The Government Entity shall pay one hundred percent(100%)of all Reimbursable Private Conversion Costs, if any. iii) The Government Entity shall pay one hundred percent(100%)of all Reimbursable Upgrade Costs, if any. iv) The Government Entity shall pay one hundred percent(100%)of all Reimbursable Temporary Service Costs, if any. v) The Government Entity shall pay one hundred percent(100%)of the costs it incurs to perform that portion of the Government Work specified in Section 3(a)(i)and (ii)(i a., Trenching and Restoration and surveying). A) The Company shall pay one hundred percent(100%)of the costs it incurs to design, provide and construct any Company-Initiated Upgrade. vii) The Company shall pay one hundred percent(100%)of the costs it incurs to obtain Operating Rights outside the Public Thoroughfare. (b) Based on the allocation of responsibilities set forth in Section 7(a), above,the Parties shall determine the net amount payable by the Government Entity or the Company,as applicable,to the other Party under this Agreement(the"Net Amount"). The Net Amount shall be determined by using the amount of the Total Shared Costs allocated to the Government Entity under Section 7(a)(i), and adjusting such amount as follows: 1) Subtracting(as a credit to the Government Entity)the amount of the Shared Government Costs. ii) Adding(as a credit to the Company)the amount of all Reimbursable Private Conversion Costs, Reimbursable Upgrade Costs and Reimbursable Temporary Service Costs. iii) Subtracting(as a credit to the Government Entity)any payments previously made to the Company by the Government Entity under the Design Agreement which, under the terms of the Design Agreement, are to be credited to the Government Entity under this Agreement. The Net Amount,as so calculated, (A)will be an amount payable to the Company if it is a positive number, and(B)shall be an amount payable to the Government Entity if it is a negative number. Construction Ireement,Attachment"B"to Schedule 74, Page 6 City of Kent. 1 Avenue North and 4 Avenue North Conversion PSE Notification#10530293 (c) Within sixty(60)business days of completion of the Conversion Project,the Government Entity shall provide the Company with an itemization of the Shared Government Costs(the"Government Itemization"),together with such documentation and information as the Company may reasonably request to verify the Government Itemization. The Government Itemization shall, at a minimum, break down the Shared Government Costs by the following categories, as applicable: (i)property and related costs incurred and/or paid by the Government Entity, including any costs of obtaining Operating Rights, and(ii)construction costs incurred and/or paid by the Government Entity, including and listing separately inspection, labor, materials and equipment, overhead and all costs charged by any agent, contractor or subcontractor of the Government Entity. (d) Within thirty(30)business days after the Company's receipt of the Government Itemization and requested documentation and Information, the Company shall provide the Government Entity a written statement(the"Company Statement")showing (i)an itemization of the Shared Company Costs, (ii)the Parties'relative share of the Total Shared Costs based on the Company's itemization of the Shared Company Costs and the Government Entity's itemization of the Shared Government Costs set forth in the Government Itemization, (iii)any Reimbursable Private Conversion Costs, (iv)any Reimbursable Upgrade Costs, (v)any Reimbursable Temporary Service Costs, (vi)any credits to the Government Entity for payments previously made to the Company by the Government Entity under the Design Agreement which, under the terms of the Design Agreement,are to be credited to the Government Entity under this Agreement, and (vii)the Net Amount, as determined in accordance with Section 7(b), above,together with such documentation and information as the Government Entity may reasonably request to verify the Company Statement. The itemization of the Shared Company Costs included in the Company Statement shall,at a minimum,break down the Shared Company Costs by the following categories,as applicable: (i)design and engineering costs,and (ii)construction costs, including and listing separately inspection, labor, materials and equipment, overhead and all costs charged by any agent, contractor or subcontractor of the Company. (e) Within thirty(30)business days after the Government Entity's receipt of the Company Statement and requested documentation and information, the Net Amount shall be paid by the owing Party to the other Party, as specified in the Company Statement. 8. Indemnification. (a) The Government Entity releases and shall defend, indemnify and hold the Company harmless from all claims, losses, harm,liabilities, damages,costs and expenses (including, but not limited to, reasonable attorneys'fees)caused by or arising out of any negligent act or omission or willful misconduct of the Government Entity in its performance under this Agreement. During the performance of such activities the Government Entity's employees or contractors shall at all times remain employees or contractors, respectively, of the Government Entity. (b) The Company releases and shall defend, indemnify and hold the Government Entity harmless from all claims, losses, harm, liabilities,damages, costs and expenses(including, but not limited to, reasonable attorneys'fees)caused by or arising out of any negligent act or omission or willful misconduct of the Company in its performance under this Agreement. During the performance of such activities the Company's employees or contractors shall at all times remain employees or contractors, respectively,of the Company. (c) Solely for purposes of enforcing the indemnification obligations of a Party under this Section 8, each Party expressly waives its immunity under Title 51 of the Revised Code of Washington,the Industrial Insurance Act, and agrees that the obligation to indemnify, defend and hold harmless provided for in this Section 8 extends to any such claim brought against the indemnified Party by or on behalf of any employee of the indemnifying Party. The foregoing waiver shall not in any way preclude the indemnifying Party from raising such immunity as a defense against any claim brought against the indemnifying Party by any of its employees. Construction Agreement,Attachment"B"to Schedule 74, Page 7 City of Kent: 1 a Avenue North and 4"'Avenue North Conversion PSE Notification#10530293 9. Conversion of Service to Custom=within Conversion Area. (a) Upon commencement of the Work,the Government Entity shall notify all persons and entities within the Conversion Area that service lines to such customers must be converted from overhead to underground service within the applicable statutory period following written notice from the Government Entity that service from underground facilities are available in accordance with RCW 35.96.050. Upon the request of any customer,other than a single family residential customer, within the Conversion Area, the Company shall remove the overhead system and connect such persons'and entities' Underground Service Lines to the Underground Distribution System. (b) The Parties acknowledge that single family residences within the Conversion Area must(i) provide a service trench and conduit,in accordance with the Company's specifications,from the underground meter base to the point of service provided during the conversion, and (u) pay for the secondary service conductors as defined in Schedule 85 of the Company's Electric Tariff G. The Government Entity shall exercise its authority to order disconnection and removal of overhead facilities with respect to owners failing to convert service lines from overhead to underground within the timelines provided in RCW 35.96.050. 10. Dispute Resolution. (a) Any dispute, disagreement or claim arising out of or concerning this Agreement must first be presented to and considered by the Parties. A Party who wishes dispute resolution shall notify the other Party in writing as to the nature of the dispute. Each Party shall appoint a representative who shall be responsible for representing the Party's interests. The representatives shall exercise good faith efforts to resolve the dispute. Any dispute that is not resolved within ten (10)business days of the date the disagreement was first raised by written notice shall be referred by the Parties'representatives in writing to the senior management of the Parties for resolution. In the event the senior management are unable to resolve the dispute within twenty(20)business days (or such other period as the Parties may agree upon), each Party may pursue resolution of the dispute through other legal means consistent with the terms of this Agreement. All negotiations pursuant to these procedures for the resolution of disputes shall be confidential and shall be treated as compromise and settlement negotiations for purposes of the state and federal rules of evidence. (b) Any claim or dispute arising hereunder which relates to any Request for Change or any equitable adjustment under Section 6,above, or the compensation payable by or to either Party under Section 7, above,and which is not resolved by senior management within the time permitted under Section 10(a), above,shall be resolved by arbitration in Seattle,Washington, under the Construction Industry Arbitration Rules of the American Arbitration Association then in effect. The decision(s)of the arbitrator(s)shall be final,conclusive and binding upon the Parties. All other disputes shall be resolved by litigation in any court or governmental agency, as applicable, having jurisdiction over the Parties and the dispute. (c) In connection with any arbitration under this Section 10, costs of the arbitrator(s), hearing rooms and other common costs shall be divided equally among the Parties. Each Party shall bear the cost and expense of preparing and presenting its own case(including, but not limited to, its own attomeys'fees); provided, that, in any arbitration,the arbitrator(s)may require, as part of his or her decision, reimbursement of all or a portion of the prevailing Party's costs and expenses (including, but not limited to, reasonable attomeys'fees)by the other Party. (d) Unless otherwise agreed by the Parties in writing,the Parties shall continue to perform their respective obligations under this Agreement during the pendency of any dispute. Construction Agreement,Attachment"B"to Schedule 74, Page 8 City of Kent: 1 Avenue North and 4"'Avenue North Conversion PSE Notification#10530293 11. Uncontrollable Forces. In the event that either Party Is prevented or delayed in the performance of any of its obligations under this Agreement by reason beyond its reasonable control (a"Force Majeure Event"), then that Party s performance shall be excused during the Force Majeure Event. Force Majeure Events shall include, without limitation,war; civil disturbance;flood, earthquake or other Act of God; storm, earthquake or other condition which necessitates the mobilization of the personnel of a Party or its contractors to restore utility service to customers;laws, regulations, rules or orders of any governmental agency, sabotage;strikes or similar labor disputes involving personnel of a Party, its contractors or a third party;or any failure or delay in the performance by the other Party, or a third party who is not an employee, agent or contractor of the Party claiming a Force Majeure Event, in connection with the Work or this Agreement. Upon removal or termination of the Force Majeure Event, the Party claiming a Force Majeure Event shall promptly perform the affected obligations in an orderly and expedited manner under this Agreement or procure a substitute for such obligation. The Parties shall use all commercially reasonable efforts to eliminate or minimize any delay caused by a Force Majeure Event. 12. Insurance. (a) PSE shall, and shall require each of its contractors to,secure and maintain in force throughout the duration of the Conversion Project(or, if sooner, until termination of this Agreement) comprehensive general liability insurances,with a minimum coverage of$2,000,000 per occurrence and$2,000,000 aggregate for personal injury;and$2,000,000 per occurrence/ aggregate for property damages,and professional liability insurance in the amount of$2,000,000. (b) The Government Entity shall ensure that each of its contractors performing any Government Work secures and maintains in force throughout the duration of the Conversion Project(or, if sooner, until termination of this Agreement) insurance policies having the same coverage, amounts and limits as specked Section 12(a), above. (c) In lieu of the insurance requirements set forth in Section 12(a),above, the Company may self- insure against such risks in such amounts as are consistent with good utility practice. Upon the Government Entity's request,the Company shall provide the Government Entity with reasonable written evidence that the Company is maintaining such self-insurance. 13. Other. (a) Agreement Sublect To Igft. This Agreement is subject to the General Rules and Provisions set forth in Tariff Schedule 80 of the Company's electrical Tariff G and to Schedule 74 of such Tariff as approved by the Washington Utittties and Transportation Commission and in effect as of the date of this Agreement. (b) Termination. The Government Entity reserves the right to terminate the Conversion Project and this Agreement upon written notice to the Company. In the event that the Government Entity terminates the Conversion Project and this Agreement,the Government Entity shall reimburse the Company for all costs reasonably incurred by the Company in connection with the Work performed prior to the effective date of termination. In such event,the costs reimbursable to the Company(1)shall not be reduced by any Shared Government Costs or other costs incurred by the Government Entity, and (ii)shall be paid within thirty(30)days after the receipt of the Company's invoice therefor. Sections 1, 5, 7, 8,9, 10, 11 and 13 shall survive any termination of the Conversion Project and/or this Agreement. (c) Facilities Greater Than 15,000 Volts. Nothing in this Agreement shall in any way affect the rights or obligations of the Company under any previous agreements pertaining to the existing or future facilities of greater than 15,000 Volts within the Conversion Area. Construction Agreement,Attachment"B"to Schedule 74, Page 9 City of Kent: 1 Avenue North and 4'"Avenue North Conversion PSE Notification#10530293 er this A9reem ant,comply rrnrng the W ork and and regulations• under th►s w. The Pees shell, n w ordinances ed by the Company color, state,and laws a basis race, (d) C li licab federal, regard to the W 1 aim�minafw o°sensory handicap►n w►th all apP �pO y,with bVe laws relating of any PhYs►ca supplies. N i cr'm italic come,Y ,,0 all aeppi� or the presence me t of materials� is an ( ant,she cC�ed,a9 s or procu agree that the company to e) pgreem on in,religion, of emPloy ent entity►I The COMPrfoormv is'ing the national g and retention any and the an s Agree t Entity in p er and the select1On r The Came e W ork Governmen ship of employer be to th for the relation nY t tr ctor,-th respect is not acting to create the ee of the CompaW ork or this (f) 1nd p dent co tsct facilities�sha► Consid� r any emPlf Y virtue of the e en itsl l�g Come no meat En b •se preserve and Pin this A9r�me f�si a Govern w�thhold►n9°r otherw►surance Work Noth►bng between �parties• yeas of resp 'sible for is tnduC Company or any benefits accorded r►tity she or contributing tri respad to the any, employee rded emPlo 11 not be d to any Govemm social seta ol an employer w entitle x the duties enforce AgreeMerit,federal T income deducting erwise as er party to insist upon°r other exercise any program,a of the Company of e►th ment or t° �thereto,shall, e or daisy ree with rasp r employs . No failur of this Agreement w► o►ce of,o Re of any provisian or perform waver or,or ch or equity not id w er f i by the other Party terse o{ sling obe r as any right at law remedy under (9) stx►ct perform►ar'A9rgement,and this A9reament, th►s Agreement of any r►9ht or consC►tut®a right under r any prOwswn er Party shall not t to the 0�'t provided tit under ds y 9 0 waver stance ar circa nce except, of any The cu, ins t t lothin9 oth�w se provided iOr or eQuity In s Pa�mstance. reemen or of thi anyone other than the A rgement or a other instance berciaries this 9 got in any a no third-party ht or interest waver►her Tt►ere confer,any ng tatives. oth®r p n c ment is inter a an legal rePresen � Thit orders and a ►s Agr rye successors,assigns subject rules, mwst1es and cou rules, (h) contained in th t0 it respe ordinance parties, oaf all go of a of them' pJl govern, regulatory I ri . Thies gg ed parties or eith effect,of g character are by m or herea ent,Mts,now or hereafter in agreement of this i) ,,is,now reem to a9r� ( require ►coon over this Ag uiremen rated►n unsd orders and other reQ aired to be►ncorPo to an association, having j that are WOO a liabiidy regulations an courts strued to crew obligations tsd in this A9 or r� artnership into any author►lies incOrpore a interPt ro ose any P t°ante of,or to this referents t shall not b Parties ar to Impight,P°wer or autho senletro This Agree tw,an the pa have any agent or rsP G1 N P or partnership ither Party Shellto act as or be� ointventure Further,fie on behalf of, of any such upon either Pa k►ng for the OPPll art having I agr�ent or dt�other Pow. Agreement or by any rovided by ise bind vision of this Ci►WMsta� um e)dan provided otherw event that any PCO e0er Pa►1Y or any t to the maxim t be affected from (k) ev r bl Ighain the ll be held valid si refoal t in�r a�thei appl' bootds 1 ey are not severable Provision rovision s of this Agree ate such p roviSions and a unless a curt°r arbin juns and S1 other p taw, sin in far but shall rem lions ce . the invalid pravi page 1 A cWent"$"to Scher C7onversiOn Construction A reemee North and 0 Avenue ,,W of Kent 1 A#14530293 _- (1) Notice. Any notice under this Agreement shall be in writing and shall be faxed (with a copy followed by mail or hand delivery),detivered in person,or mailed, properly addressed and stamped with the required postage,to the intended recipient as follows. If to the Government Entity: City of Kent 220 4"'Avenue South Kent,WA 98032-5895 Attn: Mark Madfai Fax: 253-856-6500 If to the Company Puget Sound Energy, Inc 6905 South 228th Street. SKC-SVC Kent,WA 98032 Attn: Linda Streissguth Fax. 253-395-6882 Any Party may change its address specified in this Section 13(1)by giving the other Party notice of such change in accordance with this Section 13(I). (m)Applicable Law. This Agreement shall in all respects be interpreted, construed and enforced in accordance with the laws of the State of Washington (without reference to rules governing conflict of laws), except to the extent such laws may be preempted by the laws of the United States of America. (n) Entire Agreement. This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof and all other agreements and understandings of the Parties, whether written or oral,with respect to the subject matter of this Agreement are hereby superseded in their entireties; provided, however, that except as expressly set forth in this Agreement, nothing herein is intended to or shall alter,amend or supersede the Design Agreement and the same shall remain in full force and effect in accordance with its terms. (o) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors, assigns, purchasers, and transferees of the Parties, including but not limited to,any entity to which the rights or obligations of a Party are assigned, delegated, or transferred in any corporate reorganization, change of organization, or purchase or transfer of assets by or to another corporation, partnership, association, or other business organization or division thereof. Government Entity: Company: CITY OF KENT PUGET SOUND ENERGY, INC BY E _ ITS ITS 1&44I` 'Z tcz-art�� Date Signed O ' / ' 6 Date Signed L Ap ad as t or C n tructio A reement,Attachment"B"to Schedule 74, Page 11 City of Kent: 1 Avenue North and 4"'Avenue North Conversion PSE Notification#10530293 PUGET SOUND ENERGY Schedule 74 Construction Agreement Exhibit A "Project Plan" City of Kent: 1" Avenue North and 4tb Avenue North Conversion PSE Notification Number PSE Superior Order Number 101021657 City of Kent Project Number 04-3003 This Project Plan describes work to be performed by Puget Sound Energy(PSE) and the City of Kent(the City) for the conversion of certain PSE electrical distribution system facilities as described herein(the Conversion Project). In addition to this document,the Project Plan includes and consists of: Attachment A—Conversion/Relocation Plans Attachment B—Summary of Estimated Conversion Project Costs Attachment C - All relevant PSE Standards for installation of PSE facilities Revisions to this Project Plan must be mutually V roved by the City and PSE. Scope of Work The project includes conversion of the existing overhead electrical distribution facilities (15 kV or less) to underground facilities within the City public thoroughfare along portions of two separate roadways, F"Avenue North and 40' Avenue North. The project limits along 1st Avenue are from T emperance S treet to Smith street and along 4 th Avenue from north o f the B ank o f America property to mid block between Harrison Street and Meeker Street. The portion of the project along I" Avenue North extends a distance of approximately 400 feet and the portion of the project along 0 Avenue North (including the extension to Smith Street switch cabinets) extends a distance of approximately 1095 feet. The project also includes 300 feet east and west of 0 Avenue along Harrison Street and the extension of conduit from Vault (V)-8 to through Duct Intercept Point (DIP) 3. The project includes removal of PSE's existing overhead distribution facilities from the areas described above, with the exception of the City of Kent requested overhead services to the 105 building on 1'Avenue North. In addition to the Underground Conversion scope of work and in conjunction with this project, PSE will be relocating existing underground facilities along Smith Street as per it's Franchise Agreement with City of Kent. The work includes lowering the conduit from V 17 to V21 to clear storm drain conflicts, the relocation of all facilities north of Smith Street on 2nd Avenue, relocation of V5 &V6 on Smith Street,west of 4th Avenue. Replacement of switches V9 &V 10 and installation of feeder from V29 to V33 on 1"Avenue as a PSE upgrade. City of Kent 1 1 st/4 h Avenue North Underground Conversion #101021657 10-11-04 A new connection point for every customer within the conversion area will be provided by the new underground system. Responsibilities of Parties City a) The City will provide all surveying for equipment placement locations and establish all grade elevations for new PSE underground distribution facilities within the conversion area. b) The City, or its contractor, will provide all necessary excavation, bedding, backfill, off-site disposal, and site restoration for the conversion project, along with the coordination of other utilities participating in the conversion project. c) The City, or its contractor, will install all ducts and vaults for the new PSE distribution facilities in accordance with PSE Standards using materials provided by PSE with the exception of the ducts required at the intercept points identified as DIP 8, DIP 3, DIP 4, DIP 2 and DIP 1 as designated on PSE work order 101012657. d) The City, or its contractor, will provide PSE, or its contractor, ten- (10) working days notice of anticipated conduit and vault installation to allow for delivery of PSE's materials and scheduling of the on-site inspector. A working day is defined as an 8-hour workday Monday through Friday between the hours of 7:00 AM and 6:00 PM, excluding holidays. e) The City, or its contractor, shall provide a secure staging area for materials storage. A schedule for vault deliveries must also be provided to coincide with the contractor's schedule. f) The City, or its contractor, is responsible for coordinating and scheduling removal of other utility attachments on PSE poles. g) The City will provide ten(10)working days notice to schedule mobilization and wreck-out of PSE conductors, devices, equipment and poles. h) The City, or its contractor, is responsible for all flagging and traffic control, including Uniformed Officers when required, for the duct and vault installation phase of this project. i) The City, or its contractor, will provide scheduled excavation within two- (2) working days notice for cut overs and locations where PSE or its contractor's line crews will intercept energized facilities. Cut over is defined as rerouting an existing electrical facility from the overhead system to the new underground connection point. j) The City or its contractor will provide scheduled excavation for the conduit intercept points within the conversion area. Excavation will be completed in 2 stages. The 1" stage will be site preparation and excavation restored with temporary steel plates. The 2nd stage will include exposing all conduits to be intercepted and rerouted and any required shoring in preparation for PSE to identify, intercept and reroutelextend the conduit runs. PSE will proof conduit runs that originate from existing energized vaults prior to backfilling. City of Kent 2 1"/0 Avenue North Underground Conversion #101021657 10-11-04 PSE a) PSE, or its contractor, will provide all of the duct and vault materials necessary for the electrical supporting structure, along with inspection services needed for overseeing the proper installation of such. Materials will be delivered within the ten(10) working day notice provided by the City. b) PSE will accept delivery of the completed duct and vault system once the new system has been "proofed"by the City, or its contractor. "Proofing" is defined as: successful confirmation by use of a mandrel that the duct system is free and clear of debris and damage, installed to the proper grade and location and containing a pulling line. The mandrel will be provided to the city or it's contractor, by Potelco. c)PSE will mobilize construction crews when the circuitry can be installed from the new switch locations from V 10 to the conversion area on 1" Av N. Construction crews will be mobilized a 2"d time when the underground circuitry can be installed from the new switch at V9 to the conversion area on 0 Av N. PSE franchise relocation will not prevent the mobilization of these construction crews. e) PSE or its contractor will perform cut-over and transfer of existing customers and facilities to the new underground system,where applicable. f) PSE will remove the existing overhead system and poles in 2 phases. Phase 1 is along 1" Av N and Phase 2 is along 4d' Av N. Removal will commence upon 10 work days notice provided by the City that all other utilities and services will be removed off of the poles. g) PSE, or its contractor, is responsible for all flagging and traffic control during the installation of wire and removal of the existing overhead system for this project. h)PSE, or its contractor,will tamp fill holes left from pole removal with crushed rock. i) PSE will provide on-site inspection services for the installation of PSE facilities that are I nstalled by the City, or their contractor. PSE will arrange for the inspection services. j) Inspector and PSE Project Manager or its representative will attend weekly construction meetings. k) PSE will be excavating for the intercepts at DIP 5, DIP 6, DIP 7, Ramsay Way, V-17 to V21, V22A, V23, V24, V16 and V15 to complete the 100% PSE Franchise relocation requirements for this project. Excavations will be restored with crushed rock to sub grade. 1) Restoration for excavations provided by PSE for the franchise relocation will include backfill with crushed rock to 95%compaction. Vaults will be removed at sitesV6A, V8, V18, V19, V20, V21 and 2 streetlight handholes. Once removed the vault holes will be backfilled with crushed City of Kent 13 1"/4th Avenue North Underground Conversion #101021657 10-11-04 rock to 95%compaction. Driveable services will be restored with 4" of Class asphalt; all sidewalk and curb and gutter areas will be restored with cold patch. Operating Rights The existing overhead distribution facilities within the Conversion Area are located within Public Thoroughfare. The Underground Distribution System will be located within Public Thoroughfare, or other equivalent rights (title to which shall be in the City's name) pursuant to Schedule 74 Section 3. PSE will modify the existing gas easement to include electric facilities at R9 on the Washington Mutual property. T he City w ill be responsible for s ecuring the revised a asement. In lieu o f obtaining the revised easement, the City will require the existing Homestreet Bank service be rerouted from R9 to a new handhole in the public ROW. City of Kent and PSE will jointly identify and secure a location that meets PSE standards for the switch identified as V23 in the Public Thoroughfare. A suitable site will be secured by December 15,2004. Schedule Installation of the duct and vault may be constructed in 2 phases as described under "PSE responsibilities"paragraph f). Duct and vault installation, including intercepts must begin by the 2"a week in January 2005. Phase 1 from V 10 to the conversion area to the east at 1"Av must be completed by the February 4ei 2005. Phase 2 Duct and vault installation must be completed by February 28, 2005 and be available for continuous electric crew mobilization by March 7, 2004. PSE electric crews will be scheduled to begin installation of the underground facilities as soon as the conduit runs have been proofed and approved from DIP 8 to U-1868. Duct and vault for this section must be available for continuos electric crew mobilization by February 14, 2005. PSE will coordinate the 100% PSE franchise relocation with the above schedule to minimize disruption to customer's electrical system and maintain the electric system's loop for reliability. All modifications to the electrical system during construction must be approved by PSE System Operations to ensure electrical power quality and electric system reliability. Electric underground conversion and relocation target completion date is April 22, 2005. Cost Allocation Cost allocation for this project will be governed by PSE's Rate Schedule 74. Please refer to the Compensation and Payment section of the Construction Agreement for additional information. City of Kent 4 1"/4''Avenue North Underground Conversion #101021657 10-11-04 Cant Assumptions The project design, construction plans and cost estimates are based on the following assumptions. Construction conditions that are not consistent with these assumptions may result in a request for change or an equitable adjustment to project compensation under Section 6 of the Construction Agreement. 1. Once PSE crews are mobilized, crews will be provided continuous access to the construction site and associated electrical work during the core work day hours from 7:OOAM to 6:00 PM and standard 40 hour work week,Monday through Friday. 2. Should lane closures become necessary, PSE or its contractor will be limited to working between the hours of 8:00 AM and 5:00 PM or as specified by the City's traffic department. 3. The intercept at (DIP 8) on the west side of the railroad crossing on Smith Street will be performed on off-hours. All other crossings and intercepts will be installed during core business hours. The City will provide all traffic control and Railroad Standby if required. 4. City to provide excavation and backfill for intercepting and rerouting of conduits at the locations specified under item C. of "City Responsibilities" above. PSE to remove the conductors prior to excavation. PSE to provide the labor to proof and identify existing conduits and replumb for new circuitry. The City will provide all traffic control. 5. Construction sequence for the 2nd phase from V9 to P4 & DIP 1 on 4`s Av will start at P4. New conduits and vaults will be installed by the City's contractor from P4 to DIP 1. PSE to remove the conductors prior to the City's excavation at DIP 1. Construction from DIP 2 to DIP 3 will follow the same construction pattern. All excavation and restoration to be provided by the City. PSE to provide the labor to proof and identify existing conduits and reconnect conduits for new circuitry. This work will be performed during non-core hours. PSE will proof conduits that have been intercepted and extend from energized facilities prior to backfill. 6. Inspection costs are based on a productivity level of a minimum of 127' of trench installation per day. 7. Cutover and transfers of existing commercial customers will be performed during core hours. 8. The cost estimate,prepared on approximately September 7, 2004 is based on a specific scope of work to be performed by PSE and/or their contractor with the assumption that PSE crews will have continuous productive work to install facilities in the conduits and energize the system, starting no later than February 14, 2005. 9. The City provided hard copy preliminary plans for street improvements specifically for this conversion project dated August 17, 2004. These plans were utilized to develop the initial design plans for the conversion effort. Conduits and vaults shall be installed in accordance with PSE's Final Design Drawings delivered to the City on September 27, 2004. City of Kent 5 1"/0 Avenue North Underground Conversion #101021657 10-11-04 10. City right-of-way use permits are the only permits necessary for PSE to install facilities in the conduits, energize the system and remove the existing overhead system and poles and will be issued within two (2) weeks of submitting a complete permit application (including any supporting documentation reasonably required by the City). The cost estimate assumes there will be no charge for the permit(s). 11. Uniformed Police officers are not included for traffic control that may be necessary during the wire-pulling and wreck-out stages of this project. 12. Conduits and vaults installed by the City for use by PSE are accessible and are installed to PSE standards suitable for pulling power conductors and installation of power equipment. 13. Locations for new facilities as shown on the plans are available for use. 14. Work requiring a scheduled disruption of electric service to non-residential customers will be done during work hours specified in assumption 1. Outages shall be scheduled with a minimum of two (2) business days notice, more if possible. PSE or its contractor will notify customers of pending outages. 15. Work does not include installation and/or removal of"temporary" facilities at the request of others during construction. 16. The current cost estimate is based on the installation of facilities at locations shown on the plans. 17. If the City requests additional mobilizations for wreck out of electrical facilities, PSE will seek additional compensation. 18. All existing conduits to be utilized for this project as indicated on the design are intact and usable. 19. If a field discovery during construction requires the trench to be shallow, alternatives which meet PSE standards for cover will be utilized. Schedule 80 conduit would be a solution meeting PSE standards for cover. A change order will be initiated for the change in material costs. This will be a shared cost between the City and PSE. Overhead Service Conversions Transfers and cut-overs will be accomplished based on the completed applications received for service conversions placed by the customers within the conversion area. Once all customers and the remaining utilities have transferred off the existing overhead system, PSE can begin removal of the overhead system City of Kent 6 1 a'/4`h Avenue North Underground Conversion #101021657 10-11-04 New Service Connection of new or increased load for City facilities (such as new traffic signals) under terms of PSE rate schedule 85 will be addressed on a separate work order and work sketch. Additional costs may apply and will be quoted separately. No new service applications have been received for this project. Service Disruption Some PSE customers within the conversion area will experience disruption of electric service as a result of this conversion. The following is a list of PSE customers within the conversion area and what PSE has determined to be the effect on these customers: Washington Mutual Bank Justice Center Pastimes—Yarns Home Street Bank PSE Gas Burlington Northern Railroad—2 Locations 105 Building(3-Meter) Sound Transit Parking Garage Sound Transit Station Bank of America Ih City of Kent Traffic Signals—4 Locations City of Kent at Library Meter Pedestal PSE Facility Design Standards The following PSE Design Standards are included in this Project Plan and may be applicable to this Conversion Project: 6325.3200 Underground Services 6775.0035 Vault,Handhole and Padmounted Equipment Location 6775.0040 Vault and Handhole Installation 6790.0110 Customer Supplied Trench for Commercial/Multifamily Developments 6800.4050 Depth of Burial Requirements for Underground Cable 6800.6000 PVC Conduit Installation 6925.6505 Installation of Electronic Marker 6315.08 Guard Posts for Padmount Transformer 6790.3050 Fluidized Thermal Backfill City of Kent 7 1"/4"Avenue North Underground Conversion #101021657 10-11-04 Acceptance of Project Plan The City and PSE mutually agree to and accept this Project Plan as of the date indicated below: For the For PSE: By: Date- Al Date: /O-/2_ �— City of Kent g V/4d Avenue North Underground Conversion #101021657 10-11-04