HomeMy WebLinkAboutCAG2019-434 - Original - Puget Sound Energy, Inc. - 4th and Willis Roundabout - 10/17/2019 Agreement Routing Form
KENT For Approvals,Signatures and Records Management
WAS GTON
This form combines&replaces the Request for Mayor's Signature and Contract Cover Sheet forms.
(Print on pink or cherry colored paper)
Originator: Nancy for Thomas Leyrer Department: Public Works
Date Sent: 10/7/19 Date Required: 1019
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10/1/19
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Budget R90112 Grant? Yes W1 No
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Name: Puget Sound Energy Cate g y: Contract
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Name: 4th and Willis Roundabout
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Details: Underground existing overhead power.
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Visit Documents.KentWA.gov to obtain copies of all agreements
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SCHEDULE 74 UNDERGROUND CONVERSION
Project Construction Agreement
Project Name: Kent Willis and 4th—Sch74 Conversion
Project Number: 101118283
THIS Agreement, dated as of this 1 day of p��� 20 , is made by and
between_The 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_March 11 th, 2019_(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, Page 1
Intersection of Willis St and 41h Ave S.—Kent Sch74
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.
(e) "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 specified 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.
Q) "Private Property Conversion" shall 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, (i)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), (iv)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 Agreement,Attachment"B"to Schedule 74, Page 2
Intersection of Willis St and 4th Ave S.—Kent Sch74
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(i)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 (i)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(ii) 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. Obligations of the Company.
(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
Intersection of Willis St and 4ch Ave S.—Kent Sch74
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 specified 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
iii) 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. Obligations 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
Intersection of Willis St and 41h Ave S.—Kent Sch74
(e) 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 Facilities.
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. Changes.
(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; (ii)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 Agreement, Attachment"B"to Schedule 74, Page 5
Intersection of Willis St and 41h Ave S.—Kent Sch74
schedule or other aspect of the Work and was not known by or 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:
i) 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.e.,
Trenching and Restoration and surveying).
vi) 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:
i) 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 Agreement, Attachment"B"to Schedule 74, Page 6
Intersection of Willis St and 41h Ave S.—Kent Sch74
(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
Intersection of Willis St and 4th Ave S.—Kent Sch74
9. Conversion of Service to Customers 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 (ii) 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
attorneys'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 attorneys'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
Intersection of Willis St and 41h Ave S.—Kent Sch74
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$1,000,000 per
occurrence and $1,000,000 aggregate for personal injury; and $ 1,000,000 per occurrence/
aggregate for property damages, and professional liability insurance in the amount of
$1,000,000
(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 specified 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 Subiect To Tariff. 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 Utilities 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(i) 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
Intersection of Willis St and 41h Ave S.—Kent Sch74
(d) Compliance With Law. The Parties shall, in performing the Work under this Agreement, comply
with all applicable federal, state, and local laws, ordinances, and regulations.
(e) No Discrimination. The Company,with regard to the Work performed by the Company under this
Agreement, shall comply with all applicable laws relating to discrimination on the basis race, color,
national origin, religion, creed, age, sex, or the presence of any physical or sensory handicap in
the selection and retention of employees or procurement of materials or supplies.
(f) Independent Contractor. The Company and the Government Entity agree that the Company is an
independent contractor with respect to the Work and this Agreement. The Company is acting to
preserve and protect its facilities and is not acting for the Government Entity in performing the
Work. Nothing in this Agreement shall be considered to create the relationship of employer and
employee between the Parties. Neither the Company nor any employee of the Company shall be
entitled to any benefits accorded employees of the Government Entity by virtue of the Work or this
Agreement. The Government Entity shall not be responsible for withholding or otherwise
deducting federal income tax or social security or contributing to the State Industrial Insurance
Program, or otherwise assuming the duties of an employer with respect to the Company, or any
employee of the Company.
(g) Nonwaiver of Rights or Remedies. No failure or delay of either Party to insist upon or enforce
strict performance by the other Party of any provision of this Agreement or to exercise any other
right under this Agreement, and no course of dealing or performance with respect thereto, shall,
except to the extent provided in this Agreement, be construed as a waiver or, or choice of, or
relinquishment of any right under any provision of this Agreement or any right at law or equity not
otherwise provided for herein. The express waiver by either Party of any right or remedy under
this Agreement or at law or equity in a particular instance or circumstance shall not constitute a
waiver thereof in any other instance or circumstance.
(h) No Third Party Beneficiaries. There are no third-party beneficiaries of this Agreement. Nothing
contained in this Agreement is intended to confer any right or interest on anyone other than the
Parties, their respective successors, assigns and legal representatives.
(i) Governmental Authority. This Agreement is subject to the rules, regulations, orders and other
requirements, now or hereafter in effect, of all governmental regulatory authorities and courts
having jurisdiction over this Agreement, the Parties or either of them. All laws, ordinances, rules,
regulations, orders and other requirements, now or hereafter in effect, of governmental regulatory
authorities and courts that are required to be incorporated into agreements of this character are by
this reference incorporated in this Agreement.
Q) No Partnership. This Agreement shall not be interpreted or construed to create an association,
joint venture or partnership between the Parties or to impose any partnership obligations or liability
upon either Party. Further, neither Party shall have any right, power or authority to enter into any
agreement or undertaking for or on behalf of, to act as or be an agent or representative of, or to
otherwise bind the other Party.
(k) Severability. In the event that any provision of this Agreement or the application of any such
provision shall be held invalid as to either Party or any circumstance by any court having
jurisdiction, such provision shall remain in force and effect to the maximum extent provided by
law, and all other provisions of this Agreement and their application shall not be affected thereby
but shall remain in force and effect unless a court or arbitrator holds they are not severable from
the invalid provisions.
Construction Agreement, Attachment"B"to Schedule 74, Page 10
Intersection of Willis St and 4th Ave S.—Kent Sch74
(1) Notice. Any notice under this Agreement shall be in writing and shall be faxed (with a copy
followed by mail or hand delivery), delivered 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
400 West Gowe
Kent, WA 98032
Attn: Thomas Lavrer
Phone: 253-856-5562
If to the Company: Puget Sound Energy, Inc.
6905 South 2281' St
Kent, WA 98032
Attn: Hong Nguyen
Phone: 425-449-6609
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 1 .✓ B
ITS ll r� ITS S.�orKs..— • �- l�Z
Date Signed 1 � ) Date Signed 12111-/111
Approved as to form:
0*4,;�����
Construction Agreement,Attachment"B"to Schedule 74, Page 11
Intersection of Willis St and 4th Ave S.—Kent Sch74
PUGET SOUND ENERGY
The Energy To Do Great Things
Exhibit "A" Project Plan
Schedule 74 Underground Conversion
City of Kent—Willis St and 41h Ave S.
Schedule 74
PSE Project Number: 10118283
August 6, 2019
Pursuant to Puget Sound Energy ("PSE") Rate Schedule 74 and as described in this Project Plan,
PSE will convert its existing overhead electrical distribution system of 15,000 volts or less to an
equivalent Underground Distribution System. This Project Plan describes the scope of
construction work (the "Construction Work") to be performed by PSE and the City of Kent (the
"City") for the conversion of certain PSE electrical distribution system facilities as described
herein (the "Conversion Project"). Construction of this Conversion Project is contingent upon
and shall commence only after both written acceptance of this Project Plan and written execution.
of a Schedule 74 Construction Agreement by the City and PSE.
This Project Plan includes and consists of:
• Description of the Construction Work to be performed
• Construction Drawings, Standards, Specifications and Requirements for the Construction
Work (attached)
• Operating Rights to be obtained for the Conversion Project (attached)
• Construction Work Schedule
• Construction Costs Estimate Summary (attached)
Revisions to this Proiect Plan must be mutually Uproved by the City and PSE.
Construction Work
This Conversion Project will replace PSE's existing overhead and install new electrical
distribution system with an Underground Distribution System within the following area (the
"Conversion. Area"): intersection of Willis Street (SR 516) and 41h Avenue S, Saar Street, and
West Willis Street.
The Conversion. Project has no modifications or replacement of existing services lines within the
Conversion Area. This project will include the removal of PSE's existing overhead electric
distribution facilities (including PSE distribution poles and pole mounted street lights) from the
Conversion Area.
There are no Company Initiated Upgrades in the Conversion. Project Scope of Work.
City requested upgrades included in this project consist of None
CityofKent
Page 1
101118283
Responsibilities of Parties
City Responsibilities
a) At least ten (1.0) business days prior to the scheduled commencement of Construction Work,
hold a pre-construction meeting involving all participants in the Conversion Project to review
project design, coordination requirements, work sequencing and related premobilizati.on
requirements.
b) At least ten (10) business days prior to the scheduled commencement of Construction Work,
give PSE written notice to proceed with the Construction Work to allow for delivery of PSE
materials to the job site and scheduling of PSE's on-site Inspector.
c) Provide written notice to customers within the Conversion. Area in advance of Conversion
Project Construction Work start. The notice will include contact information for both the
City and PSE, the expected Conversion Project schedule, anticipation of service interruptions
and work required to be performed by customers.
d) Coordinate other utility conversion, removal and relocation from PSE's poles.
e) Provide all surveying for equipment placement, locations, and establish all grade elevations
for the Underground Distribution. System within. the Conversion. Area.
f) Provide all necessary excavation, bedding, backfill., off-site disposal, site restoration and
coordination for installation of the Underground Distribution System. This includes
trenching, backfill, and restoration for cut-over and transfer of existing underground system
and service lines from. the existing overhead distribution system to the new Underground
Distribution System.
g) Provide flagging and traffic control as required for all work performed by the City.
h) Install and proof all ducts and vaults for the Underground Distribution System (excluding
work in ducts or vaults containing energized cables or equipment —see PSE Responsibilities)
in accordance with. PSE standards and specifications using ducts and vaults provided by PSE.
"Proofing" as used herein is defined as verification using a mandrel that the duct and vault
system is free and clear of damage, installed to the proper grade and at the proper location and
contains a pulling Line.
i) Provide at least five (5) business days' notice for scheduled delivery of PSE vaults by PSE's
vault supplier.
j) Provide secure staging and storage area(s) for duct and vault materials provided by PSE. The
City shall be responsible for the security and condition of these materials until they are
installed and accepted by PSE or returned to PSE's custody.
k) Provide labor and equipment for the off-loading of PSE duct and vault materials delivered to
the job site.
City of Kent
Willis St and 4h Ave S. page 2
1) Facilitate weekly (or as otherwise agreed by the City and PSE) construction coordination
meetings to include all relevant parties participating in the conversion including PSE and its
contractor(s), the City and its contractor(s), and other utilities.
m) Provide any necessary operating rights for the installation of PSE's facilities in accordance
with PSE's Schedule 74 Section 3 and as mutually agreed by the PSE and the City.
Operating rights are further addressed in the Operating Rights section of this Project Plan.
n) Modify, reroute or replace service lines to City owned facilities to connect to the
Underground. Distribution System.
o) Following notification from PSE that Construction. Work is complete; provide to PSE any
Shared Government Costs as provided for in.the Construction Agreement.
Puget Sound Energy ResDonsibilities
a) Following notice from the City, deliver or cause to be delivered all duct and vault materials
to the designated staging/storage area(s). Acknowledge delivered quantities and condition of
duct and vault materials by signing shipping manifests.
b) Following notice from the City, provide inspection services needed for overseeing the proper
installation of ducts and vaults by the City.
c) Accept delivery of the completed duct and vault system once the new system has been
proofed (as described above) by the City. PSE will provide a mandrel to the City to be used
in proofing of the duct and vault system.
d) Provide PSE electrical workers to complete duct installation and proofing when such work is
performed at or in any energized vault containing energized cables or equipment.
e) Install (except for ducts and vaults installed by the City) and energize the Underground
Distribution System. Provide written notice to the City when the Underground Distribution
System is energized.
f) Perform cut-over and transfer of existing Underground Distribution System and existing
underground service lines from the overhead distribution system to the new Underground
Distribution System where applicable (see City Responsibility item 'f concerning trenching
responsibility). PSE will notify the City for excavation and the affected customers at least
two (2) business days prior to installation, transfer, and connection of underground service
lines. Affected service lines are listed in the Service Lines section of this Project Plan.
g) Install and connect replacement underground service lines to single family residences and
connect modified and replacement non-residential underground service lines provided by
customers within the Conversion Area pursuant to PSE Tariff Schedule 85. Affected service
lines are listed in the Service Lines section of this Project Plan.
h) Remove the existing overhead electric distribution system including, conductors, equipment,
down guys, anchors and poles after all service lines to customers within the Conversion Area
are connected to the Underground Distribution System and all other utilities have been
removed from PSE's poles. Holes left following removal of poles will be filled with crushed
rock and compacted in accordance with applicable City standards or specifications.
City of Kent— Willis Street and 4`h Ave S. page.3
i) Provide flagging and traffic control as required for all work performed by PSE (except as
may otherwise be reasonably provided by the City during installation of ducts and vaults in
conjunction with City performed trenching, excavation, back-fill and restoration).
j) Attend weekly (or as otherwise agreed by the City and PSE) construction coordination
meetings facilitated by the City and its contractor during periods of Conversion Project
construction.
Operatin Ri hts
The Underground Distribution System will. be located within Public Thoroughfare and no
additional operating rights will be required for the construction of this conversion project.
Construction Work Schedule
The Construction Work will be performed in accordance with the following Work Schedule,
unless this schedule is revised by mutual agreement of the City and PSE or circumstances
beyond the reasonable control of the City and/or PSE preclude such performance.
Installation of ducts and vaults: Will be 2019 construction and is anticipated to be (25) working
days for duct and vault.
Installation and energization. of the Underground Distribution System: Will be energized in
2019 and is anticipated to take approximately (26) working days.
Removal of overhead facilities: Poles PO (31.4147-165230), .P02 (314131-165214), P 0 4
(3 14 1 322- 1 65247) & P07 (3 ]. 4096- 1 65227) will. be removed in 2019 and is
anticipated to take approximately two days for removal. of PSE's overhead system. Poles will be
removed once all utilities have removed facilities off the poles.
Installation and removal of Teml)orary Service: Temp services requested to be done on a
different project.
Work Schedule Restrictions: No work restriction anticipated at this time.
Construction Cost Estimate
The estimated costs to perform the Construction Work and the allocation of costs between the
parties are presented in the attached Construction Costs Estimate Summary. These estimated
costs are valid for ninety (90) days from the date shown on the attached Construction Costs
Estimate Summary. I f this Project Plan and a Schedule 74 Construction Agreement are not
fully executed within ninety (90) days from this date, the estimated costs shall be subject to
revision.
The scope of work provided for in the previously executed Design Agreement has been
completed with written acceptance of this Project Plan by the City and PSE. The Construction
Cost Estimate summary reflects and provides for Construction Work costs commencing with
PSE attendance at the required pre-construction meeting and receipt of the City's written notice
to proceed with Construction Work. Work performed and/or costs incurred by PSE in response
City of Kent—Willis Street and 4`h Ave S. Page 4
to City request following acceptance of the Project Plan and prior to the pre-construction meeting
are not included in the Construction Cost Estimate Summary, and shall be subject to addition to
the Construction Cost Estimate by revision as described below.
Estimated Inspection and Service Provider Outside Services costs are based on
being constructed in 2019. Any work in 2020 will be subject to change order at the 2020
contract construction rates.
Costs/or Construction Work performed by PSE outside of the projected corresponding
construction years shall be subject to revision to reflect PSE Service Provider contract rates
which become effective in January of 2020.
Changes in Constriction Work scope, performance and/or schedule can result in actual
Construction Costs that differ from estimated costs shown in.the Construction Cost Estimate
Summary. In the event performance of the Construction Work cannot or does not proceed
substantially as provided in this Project Plan, such changes shall promptly be brought to the
attention of PSE and the City when anticipated or known and shall be documented in a revision
to the Construction Cost Estimate Summary (a "Cost Estimate Revision")mutually agreed and
executed by the City and PSE.
Project Assumptions
The project design, construction plans and cost estimates are based on and reflect 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 and addressed by a Cost Estimate Revision.
Cost Assumptions
1. The Construction Work will be performed in accordance with the Construction Drawings and
Construction Work Schedule.
2. PSE's Project Manager will accept or reject (with written justification) the duct and vault
installation work performed by the City within five (5)business days' notice of completion
from the City. In the event PSE rejects any of the ducts or vaults (with reasonable written
justification), the City will perform the necessary remedial work. The City will then re
notify PSE and PSE shall have five(5)business days to accept or reject the remedial work.
3. All PSE cables can be pulled through the ducts and vaults system, including existing ducts
and vaults if applicable, to be used for the Conversion Project utilizing normal cable pulling
equipment and methods.
4. A City Street Use permit is the only permit necessary for PSE to perform its work for this
Conversion Project and will be issued within. two (2) weeks of PSE submitting a complete
permit application (including any supporting documentation reasonably required by the
City). There will be no charge for the permit or inspection fees.
City of Kent—Willis Street and 4`"Ave S. Page 5
i
i,
Ii
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5. The estimated. daily productivity rate for PSE duct and vault installation is based on. the City's
contractor opening a minimum of LkQJ feet of trench per working day. The daily productivity
rate is used to estimate the number of days a PSE Inspector will be required during installation
of ducts & vaults. The Inspector will be scheduled in full day increments and in one
continuous effort. Changes to a continuous schedule require a minimum of five (5) days
advance notice and must be mutually agreed between the City and PSE.
6. Attendance by PSE's Project Manager at scheduled weekly construction coordination
meetings is included and reflected in the Construction Cost Estimate during periods when the
PSE ducts and vaults are actively being installed and when the PSE line crew is performing
installation, energization, cut-over and removal work. Attendance at additional meetings that
may be requested/required during other periods will be addressed by a Cost Estimate
Revision.
7. Traffic control provided by PSE assumes the use of two flaggers, basic signage and simple
channelization. Additional traffic control measures are not included and if
requested/required will be addressed by a Cost Estimate Revision.
8. Work to be performed by PSE does not include installation and/or removal of Temporary
Service facilities at the request of others during construction.
9. Cut-over and transfer work will be completed during regular working hours as described in
Schedule Assumption #3 below. Changes in the performance of this work will be addressed
by a Cost Estimate Revision.
10.New guy anchors shall be installed prior to installation of new ducts in the same area.
11.When Fluidized. Thermal Baekf ll (FTB) is used, associated cost will be allocated 100%to
PSE when required for a Company Initiated Upgrade and otherwise 100%to the City.
12.Installation of protective bollards may be necessary at some locations and may not be
included in the project design.. In the event unplanned bollards are required, associated costs
will be a Shared Cost and addressed by a Cost Estimate Revision.
Schedule
1. There will be a total of two (2) PSE crew mobilizations for each of Phase One and Phase
Two as follows: i) one mobilization of an underground line crew for installation of
underground conductors and equipment; and ii) one mobilization of an overhead line crew
for removal of the existing overhead facilities. Once mobilized, PSE crews will have
continuous productive work until all PSE Construction Work is complete.
2. All PSE Construction Work will be performed during regular working hours from 7:00 am to
3:30 pm Monday through Friday excluding holidays. In the event that lane closures are
necessary for performance of work, PSE shall be limited to working between the hours of
7:00 am to 3:30 pm .Monday through Friday. PSE and the City will. mutually agree to weekly
work schedules for the Construction Work. PSE shall be allowed to perform. PSE work as
scheduled without changes or interruptions caused by other construction activities.
3. PSE customers within the Conversion Area will experience interruption of electric service
during performance of the Construction. Work when cutting over and transferring system and
customer loads from the overhead distribution system to the Underground Distribution
City of Kent— Willis Street and 4'h Ave S. Page 6
System. Cut-over and transfer work will be performed during the regular working hours
specified in Schedule Assumption #2 above except as otherwise provided below. PSE will
notify customers at least two (2) business days in advance of scheduled service interruptions.
Additional Considerations
Service Lines
Service lines within the Conversion Area must be modified or replaced to provide underground
service from the Underground Distribution System as listed below. Performance of the work and
associated costs shall be governed by PSE Tariff Schedule 85.
New Service
Connection of new or increased load for City facilities (such as new traffic signals) under terms
of PSE Tariff Schedule 85 will be addressed on a separate work order and work sketch.
Additional costs may apply and will. be quoted separately.
PSE Design & Construction Standards
This Conversion Project has been designed and will be constructed in accordance with PSE
design and construction standards in effect as of the date of this Project Plan. PSE standards
applicable to Construction Work to be performed by the City have been provided to the City in
PSE's 'Electric Distribution Trench/DuctNault Construction Standards, 2013". All relevant
PSE standard described above are attached to this Project Plan by this reference.
Temporary Support (.Holding) of PSE Poles
Whenever any pole(s) are required to be temporarily supported (held) due to excavation in
proximity to such poles, the City will coordinate with. PSE to provide such support. The need to
temporarily support such poles shall be determined by PSE, and if required, such support shall be
provided by PSE. As used herein, "temporary support" means supporting one or more poles for
a continuous working period of ten hours or less.
City of Kent— Willis Street and 4`"Ave S. Page 7
Acceptance of Pyoiect Plan
The City and.PSE mutually agree to and accept this Project Plan as of the date indicated below:
For the City: For PSE:
-1 b N
BY BY �-
ITS ITS
Date Signed Date Signed IV S///`f
City of Kent- Willis Street and 4'h Ave S. Page 8
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