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Grant - Joint Build Agreement 03052013 JOINT BUILD AGREEMENT 1J� THIS JOINT BUILD AGREEMENT ("Agreement") dated this day of�--�� 1998, is made by and between PACIFIC FIBER LINK, LLC, a Washington limited liability company, with an office at 215 Marine Drive, PO Box 5123, Blaine, WA 98239 ("Pacific Fiber") and City of Yelm, a Washington limited municipal corporation, with an office at 105 Yelm Avenue, Yelm, WA 98597 (City). WHEREAS, Pacific Fiber, a developer, designs, engineers, constructs and installs a multiple conduit telecommunications system between Seattle, Washington and Portland, Oregon; and WHEREAS, City intends to design, construct and operate a reclaimed water distribution system in and around Yelm, Washington; and WHEREAS, each party is willing to construct such facilities simultaneously and to share the costs of construction in accordance with the terms and conditions set forth herein along an alignment defined in the scope of work; NOW, THEREFORE, in consideration of the mutual covenants, terms, conditions and obligations contained herein, and intending to be legally bound hereby, the parties hereby agree as follows: 1. Certain Definitions For purposes of this Agreement, the following ternis are defined: (A) "Affiliate" shall mean any Person controlling, controlled by, or under common control with another Person. (B) � "Conduit" shall mean a structure containing one or more ducts. (C) "Control" shall mean the power to control the business or affairs of a Person. (D) "Duct" shall mean a single enclosed raceway acceptable for fiber optic cables. (E) "Facilities" shall mean all fiber optic cables, lines, pedestals, ducts, conduit, handholes, manholes,boxes and associated equipment, devices and hardware which aze owned or designated for by a particular party along a Joint Build. (F) "Governmental Authority" shall mean any federal, state or local government, or any agency or instrumentality thereof, having competent jurisdiction over the Facilities, the Joint Build or the parties hereto. (G) "Joint Build" shall mean any combination of the System and the Facilities in a common excavated trench joined to from an integrated whole along the Route identified in the Scope of Work. (H) "Lead Company" shall mean the City or its designated contractor, as identified in a Scope of Work, who is responsible for managing the Work for the Route identified in the Scope of Work. (1) "Manhole" shall mean an opening, either jointly or individually owned, in the Joint Build by which the parties may enter for the purpose of installing and maintaining Facilities. (J) "Participant" shall mean Pacific Fiber Link, LLC who is responsible for paying the Lead Company a portion of installation costs for the Joint Build as set forth in this Agreement. (K) "Route" shall mean the route designated in a Scope of Work.. (L) "System" shall mean the recycled non-potable water line. (M) "Work" shall mean all necessary installation, management, engineering, placement, make ready and preparatory work required for the construction of the Joint Build. The "work" in this case is a "Public Works Project" governed by the Chapter 39.04 RCW which provisions are included by reference. (N) General Contractor - a contractor hired by the City following the Public Works contractor laws Chapter 39.08 RCW. (0) Alignment - The route where the City's and Pacific Fiber's facilities run parallel and will be constructed in a "Joint Build". 2. Contract Documents This document shall comprise a complete and binding agreement between the parties upon execution of this Agreement and a "Scope of Work" pertaining to a particular Route of the Joint Build, and any exhibits or amendments thereto, when executed by the parties shall incorporate the terms and conditions of this Agreement. In the event of a conflict or inconsistency between this Agreement and the terms set forth in a Scope of Work, the terms of the Scope of Work shall in all cases prevail, but only for the specific construction project identified in the conflicting or inconsistent Scope of Work. 3. Governmental Authorities Each party represents and wanants that it has or will have prior to construction, all permits, approvals and authorizations ("Authorizations") required by any Governmental Authority and any other third party agreements necessary to complete the Work contemplated by this agreement and to occupy and use the Right of way occupied by the Facilities & System constructed herein. Each party shall provide written evidence of such Authorizations to the other party upon request. In the event Participant does not have the necessary Authorizations prior to construction, Lead Company may, at its sole discretion, commence construction of the Joint Build and Participant shall pay Lead Company in advance for the estimated incremental costs of installation and materials for such Route of the Joint Build. 4. Installation (A) Work Responsibility. Upon acceptance of a Scope of Work, Lead Company shall be responsible for all Work required along the Route of the Joint Build, including the hiring and management of any general contractors, subcontractors or material suppliers who supplied the labor and/or materials for the Work. The time of perfo�nance of the Work is of the essence and Lead Company shall endeavor to prosecute such Work in a prompt and diligent manner. During the progress of construction, Lead Company shall designate a competent manager who shall act as its authorized representative in connection with the Work and shall prepare and provide to Participant a monthly construction schedule and progress report. (B) Project Costs. For its portion of underground construction, each party shall be responsible for their respective Project Costs as set forth in • the Scope of Work. (C) Materials. Lead Company shall hire a general contractor for the complete construction of the Joint Build, except that Participant shall purchase and deliver the Conduit and Facilities to be installed for its benefit at its own cost and without delay. The total delivered costs of the materials supplied by participant shall be deternzined by the invoices from the vendors, plus any shipping, handling and storage costs. Participant shall pay Lead Company for associated construction costs and materials as set forth in the Scope of Work. (D) Specifications. The Joint Build shall meet industry standards and the technical specifications set forth in Exhibit C and the applicable Scope of Work or such other revised standards as are mutually acceptable to the parties. Upon completion of a particular Route, Lead Company shall perform testing on Joint Build to determine the compliance with these specifications and both parties shall have the right to have technicians present when testing is performed. Lead Company shall provide Participant with prior notice of the date and time of such testing and Participant shall have the right, but not the obligation, to observe such testing. After completion of the testing, Participant may inspect the Work performed by Lead Company and shall have five(5) days to notify Lead Company of any reasonable objection to or deficiency in such Work. Upon receipt of notification, Lead Company's general contractor shall, at its sole cost and expense, correct any such items on the Joint Build as soon as practicable and a retest shall be performed. Participant shall send Lead Company a written acceptance of the Joint Build when the retest results are satisfactory. If Participant fails to provide such notification within the five (5) day period, the Work shall be deemed acceptable by Participant and Lead Company shall have no further liability related to the Joint Build except as otherwise expressly provided herein. (E) Location of Joint Build. The specific location of the Joint Build shall be as designated in the applicable Scope of Work. Lead Company shall not provide Participant with "as-builts". Participant shall as-build with its own forces and shall have access for such information. (F) Right to Proceed: Each party shall cooperate with the other to comply with any provisions governing the character or time of performance in the Scope of Work. It is understood the Lead Company is required to utilize the Public Works bidding and acquisition process to hire a General Contractor. It is further understood the Lead Company's system is funded in part by state and federal monies. These funding agencies require certain procedures be followed and as such, exact timing of the bid, ad and award process is out of the Lead Company's direct control. In the event Lead Company fails to comply or becomes unable to comply, � or the Participant fails to comply or becomes unable to comply with the provisions governing character or time of performance in the Scope of Work, and such failure is not corrected within (10 ) days after receipt of written request by the other party, the Representatives of each party shall immediately meet at Yelm City Hall to discuss the status of the project and attempt to remedy the differences. If discussions fail to bring the parties into compliance with the Scope of Work, with any amendments, agreed to by the parties, then either party may, without prejudice to any other right or remedy, pursue their individual portion of the Scope of Work. i. Pay all cost associated with the preparation of the plans and specifications for the Work, and to pay all administrative cost the Lead Company has incurred. ii. If construction has commenced, the Participant shall pay the Lead Company all cost associated with their construction and all cost related the construction contract administration inspection. iii. Invoice the Participant for its pro rata share, as set forth in the Scope of Work, of any Project cost for completing work. (G) Changes. The parties may by mutual agreement make changes in, additions to and deletions from the Work and any Scope of Work, and Lead Company shall promptly proceed with the performance of the Work as so changed. The Project Costs and time for performance shall be equitably adjusted to compensate for increased or decreased costs and time for performance resulting from such changes, additions and deletions. S. Ownership Any Facilities supplied by a particulaz party shall remain the property of such party. Any Facilities installed and designated for a particular party as set forth in a Scope of Work shall become the property of such party upon payment in full for its respective Project Costs. Further, a party shall not have title to any such Facilities until such party has secured the necessary Authorizations required in Section 3. Each party agrees to take all necessary precautions to protect the other party's Facilities/System from any physical damage and to keep such Facilities/System in the same manner as such party protects its own similar Facilities/System. Each party agrees to keep such Facilities/System free and clear of all mechanic's, artisan's, materialman's or other liens which arise from, or as a result of, the Work performed by such party. 6. Maintenance and Restoration (A) General. After completion and acceptance of the Work, each party shall be responsible for performing (at its own cost) all maintenance and repairs of its Facilities/System. Such maintenance and repairs shall be performed in a good and workmanlike manner, in accordance with the specifications of this Agreement, the National Electrical Safety Code, the National Electrical Code, applicable industry standards, and regulations of applicable Governmental Authorities. (B) Access. Each party shall have access to its Facilities/System (including any jointly-owned manholes and/or handholes) on a 24-hours per day, 7- days per week basis as necessary for the proper maintenance and/or restoration of its Facilities; provided, however, such access shall be coordinated with the other party. Before beginning any non-emergency, scheduled maintenance, each party shall give the other at least 48 hours advance notice. Notwithstanding the foregoing, each party shall have unlimited access (and without prior notice to the other party) to its individually owned manholes and/or handholes as designated in the applicable Scope of Work. (C) Emergency Maintenance. In the event of an emergency, each party shall have the right to perfonn maintenance and/or restoration of its Facilities/System and such party shall use commercially reasonable efforts to notify the other party as soon as practicable. If both parties require simultaneous access to the same Route of the Joint Build, then each party shall coordinate such access in a manner that reasonably accommodates the needs of both parties. The parties shall use commercially reasonable efforts to restore lit fibers before performing maintenance on any other Facilities/System. 7. Relocation In the event that a Governmental Authority requires the transfer, rearrangement or relocation of any portion of the Joint Build, the parties shall each pay their pro rata share for all reasonable costs of the transfer, rearrangement or relocation. The parties shall use commercially reasonable efforts to identify an alternate location for the Joint Build. In the event the parties are unable to agree on a suitable alternate location for the Joint Build, then either party may terminate this Agreement with respect to such Route of the Joint Build and remove its Facilities from such Route. 8. Representations and Warranties Each Party represents and warrants that: (A) It has full right and authority, including any requisite authority as a limited liability company, to perform its respective obligations under this Agreement; (B) The execution of this Agreement is not a violation of its charter, by-laws or any law, regulation or agreement by which it is bound or to which it is subj ect; (C) No litigation or governmental proceeding is pending or threatened in writing which is reasonably likely to materially and adversely affect this Agreement, the transaction contemplated by this Agreement or the rights of the parties hereunder. 9. Taxes Each party shall be responsible for any present or future taxes, fees, charges or assessments ("Taxes") which such party is required or obligated to pay by reason of the construction of the Joint Build or the installation and/or operation of such party's Facilities/System. 10. Term This Agreement shall become effective as of the date written above and, shall continue in effect until either this Agreement or a Scope of Work is terminated in accordance with such agreement's terms. Either party may terminate, at anytime and without cause, the Route in the Scope of Work by delivering written notice thereof to the other party at least fifteen (15) days prior to the effective date of such termination. Upon termination under this section, each party shall pay for its pro rata share of the Project Costs through the effective date of termination and until the completion of a mutually acceptable stopping point for the particular Route. In such event, the party which has not elected to terminate the Scope of Work may continue to perform the Work at its sole cost and expense. 11. Billing and Default Participant agrees to pay Lead Company for all cost incurred as identified in the Scope of Work. All undisputed amounts due Lead Company under this Agreement shall be paid by Participant within thirty (30) days following receipt of invoices from Lead Company along with a detailed accounting of such amounts. If any undisputed amount is not paid to Lead Company within such period, Participant shall be considered in default and shall be required to pay interest of one and one-half percent (1 1/2%) per month on such unpaid amount. Participant must identify and explain in detail any disputed invoice items within thirty (30) days of the receipt of such invoice and proceed in good faith to resolve such dispute. To the extent the Lead Company owes Participant amounts incurred under service or reimbursement provisions of this Agreement the above billing provisions equally apply. In no event shall either party be entitled to bill the other party more frequently than on a monthly basis for any amounts due under this Agreement. 12. Indemnification Any party seeking indemnification hereunder ("Indemnitee") shall promptly notify the other party ("Indemnitor") of the nature and amount of such claim and the Indemnitee shall consult with the Indemnitor respecting the defense and satisfaction of such claim brought by a third party, including the selection of and direction to legal counsel, and the Indemnitee shall not pay or settle any such claim without the prior written consent of the Indemnitor, which consent shall not be unreasonably withheld or delayed. Except to the extent such claims are caused by the negligence of a party indemnified under this Agreement, Indemnitor shall defend, indemnify and hold harmless Indemnitee from and against and shall pay all losses, damages, liabilities, penalties, fines, assessments, claims and actions, and all related expenses (including reasonable attorneys'fees and expenses and the costs of litigation) by reason of injury or death to any person, damage to any ' property or any other occurrence arising out of, resulting from or in any manner caused by or related to the installation, maintenance, presence, use or removal of Indemnitor's Facilities; on account of loss or infringement of copyright, libel, slander, or unauthorized use of information arising out of, resulting from or in any manner caused by the operation or use of Indemnitor's Facilities; on account of Indemnitor's failure to secure necessary Authorizations from any applicable Governmental Authority and any necessary rights-of-way from owners of property; and on account of infringement of patents with respect to the manufacture, use and operation of the Indemnitor's Facilities. In no event shall either party be liable for any punitive, consequential, incidental, special damages or lost profits incurred or alleged to have been incurred by anyone. Each party hereby waives, with respect to the other party, any immunity that would otherwise be available against claims under any and all worker's or workmen's compensation statutes. 13. Insurance During the term of this Agreement, each party shall obtain and maintain, and shall require of its permitted subcontractors to obtain and maintain, the following insurance, naming the other party as an additional insured: (i) not less than $5,000,000.00 combined single limit liability insurance, on an occurrence basis, for personal injury and property damage, including injury or damage arising from the operation of vehicles or equipment and liability for completed operations; (i) worker's compensation insurance in amounts required by applicable law and employer's liability insurance with a limit of at least $1,000,000.00 per occurrence; and (iii) automobile liability insurance covering death or injury to any person or persons, or damage to property arising from the operation of vehicles or equipment, with limits of not less than $1,000,000.00 per occurrence. (A) Both parties expressly acknowledge that a party shall be deemed to be in compliance with the provisions of this Section if it maintains an approved self-insurance program providing for a retention of up to $1,000,000.00. If either party provides any of the foregoing coverages on a claims made basis, such policy or policies shall be for at least a three (3) year extended reporting or discovery period. (B) Unless otherwise agreed, all insurance policies shall be obtained and maintained with companies rated A or better by Best's Key Rating Guide and each party shall, upon request, provide the other party with an insurance certificate confirming compliance with the requirements of this Section 13. Insurance. Such certificates shall provide for thirty (30) days' advance written notice to the other party for any cancellation, material change, reduction of coverage or non-renewal. (C) Each party shall obtain from the insurance companies providing the coverage required by this Agreement, the permission of such insurers to allow such party to waive all rights of subrogation and such party does hereby waive all rights of said insurance companies to subrogation against the other party, its affiliates, subsidiaries, assignees, officers, directors and employees. (D) In the event either party fails to maintain the required insurance coverages and a claim is made or suffered, such party shall indemnify and hold harmless the other party from any and all claims for which the required insurance would have provided coverage. 14. Risk of Loss The risk of loss, damage or destruction to any of the Joint Build or Facilities/System will be born by Lead Company prior to the transfer of title to Participant, and thereafter by Participant with respect to that portion of the Facilities transferred to Participant. 15. Termination In the event a party fails to observe or perform any of the terms and provisions of this Agreement and such failure shall continue for a period of thirty(30) days after written notice from the other party(or such longer period as may be necessary if such failure cannot reasonably be cured within such thirty day period and if such party undertakes such cure within such thirty day period and thereafter diligently proceeds, in good faith, to cure such failure, but in no event for more than 180 days) ("Default"), the non-defaulting party may, in addition to any and all other remedies allowed by law, terminate this Agreement in its entirety or terminate the Scope of Work with respect to a particular Route. Upon termination of this Agreement for any reason, each party shall pay for its pro rata share of the actual and documented costs of installation and materials up to the date of such termination and until completion of a mutually acceptable stopping point for a particular Route. 16. Condemnation Upon receipt of a fonnal notice of condemnation or other taking by eminent domain, each party shall notify the other party immediately of any such proceeding threatened or filed against any portion of the Joint Build. In the event and to the extent of any condemnation or other taking by eminent domain of all or any part of the Joint Build, or any property or rights relating thereto, then the proceeds thereof shall be apportioned on a pro rata basis as set forth in the Scope of Work. 17. Waiver of Compliance Failure of either party to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a waiver or relinquishment of any such terms or conditions. To the contrary, the same shall remain at all times in full force and effect. 18. Limitations Nothing herein shall in any way restrict, modify, or alter either party's absolute right to lease, sell, dispose of or utilize, in its sole discretion, its Facilities/System which are subject to this Agreement provided that the title and ownership have been vested into such party. 19. Assignment Neither Party may assign or otherwise transfer this Agreement or its duties and obligations contained in this Agreement without the prior written consent of the other, which consent shall not be unreasonably withheld or delayed. 20. Sale or Lease of Facilities Either party may, in the course of its business and the conduct of its operations hereunder, sell, lease or license any or all of its Facilities to or by any Persons. All purchasers, lessees and licensees shall use the Facilities in a manner consistent with this Agreement, and the agreement between such party and the proposed purchaser, lessee or licensee shall in all respects be subject to the ten-ns and conditions of this Agreement 21. Notices All notices shall be in writing and shall be delivered by certified mail return receipt requested or any other delivery system which is capable of providing proof of delivery. Any such notice shall be deemed effective on the date of mailing. All notice shall be addressed to the parties at the addresses set forth above, or at such other address given to a party in writing by the other party. 22. SeverabiGty In the event that any term or provision of this Agreement is declared to be illegal, invalid or unconstitutional, then that provision shall be deemed to be deleted from this Agreement and have no force of effect and this Agreement shall thereafter continue in full force and effect, as modified. 23. Force Majeure Neither Party shall be liable to the other for any failure of performance under this Agreement due to causes beyond its control (except for the fulfillment of payment obligations as set forth herein), including, but not limited to: acts of God, fire, flood or other catastrophes; adverse weather conditions; material or facility shortages or unavailability not resulting from such party's failures to timely place orders therefor; lack of transportation; the Imposition of any governmental codes, ordinances, laws, rules, regulations or restrictions; national emergencies; insurrections; riots; wars; or strikes, lock-outs, work stoppages or other labor difficulties; provided however, that said time period shall be extended for only the actual amount of time said party is so delayed. An act or omission shall not be deemed to be "beyond its control" if committed, omitted or caused by such party, or its employees, officers, agents or affiliates, or by any corporation or other business entity that holds a controlling interest in said party, whether held directly or indirectly. 24. Alternative Dispute Resolution The parties agree to the following as their sole means of resolving any disputes arising from or in any way relating to this Agreement. For a period of forty-five (45) days after notice from either party, the parties shall attempt in good faith to resolve the dispute by direct negotiation of non-lawyer representatives of the parties. If the parties do not resolve the dispute within such forty-five (45) day period, either party may submit the matter to mediation with a professional mediation service selected by the parties. If the parties do not resolve the dispute through mediation within an additional forty-five (45) day period, either party may submit the dispute to binding arbitration with a professional arbitration service selected by the parties. If the parties do not otherwise agree on a mediation or arbitration service, such services shall be provided pursuant to the J.A.M.S./ENDISPUTE Arbitration Rules and Procedures ("Endispute Rules"). The costs of inediation and arbitration, including the fees and expenses of the mediator and arbitrator, shall be paid equally by the parties unless the arbitration award provides otherwise. Each party shall bear the cost of preparing and presenting its case. The parties agree that this paragraph and the arbitrator's authority to grant relief shall be subject to the United States Arbitration Act, 9 U.S.C. I- 1 6 et seq. ("USAA"), the provisions of this Agreement, and the ABAAAA Code of Ethics for Arbitrators in Commercial Disputes. The parties agree that the arbitrator shall have no power or authority to make any award that provides for punitive or exemplary damages or any other damages excluded by the terms of this Agreement. The arbitrator's decision shall be final and binding. The award may be confirmed and enforced in any court of competent jurisdiction. All post-award proceedings shall be governed by the USAA. 25. Governing Law This Agreement shall be governed by and interpreted in accordance with the substantive laws of the State of Washington, without reference to its conflicts of laws principles. 26. Survival Any and all provisions of this Agreement which,by their nature, would reasonably be expected to be complied with or performed after the expiration or termination of this Agreement, including but not limited to the maintenance obligations set forth in Section 6 hereof, shall survive and be enforceable after the expiration or termination of this Agreement. 27. Entire Agreement This Agreement, including any Exhibits and the Scope of Work, contains the entire agreement between the parties and supersedes all prior oral or written agreements with respect to the subject matter hereof. This Agreement may not be amended or modified except by a written instrument executed by the parties hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. PACIFIC FIBER LINK, LLC By: Titl . � Bc'�Y�awT Q,d►��IJ��c� ��BO$wQ wi2w1 CITY OF YELM By: Title: ��.,, EXHIBIT A SCOPE OF WORK RE: Joint Build Agreement dated �� 1998 Date: ���Qb��L��� o s•a.' Lead Company: CITY OF YELM Participant Company: PACIFIC FIBER LINK, LLC Route: Approximately 60001inear feet, located in Yelm, Washington, along Crystal Springs Rd., Edwards St., and Mosman St., as more fully described on the attached Exhibit B (Plans). Installation: Lead Company shall tender public proposals for the excavation, installation,backfill and restoration of pavements, as described in more detail in Exhibit C (Specifications) . Participant shall supply Lead Company with a list of acceptable contractors for the butt fusion welding of the Participants 10"HDPE. The Lead Company's contractor shall place the HDPE in its final location. Specifications: The Washington State Department of Transportation Standazd Specifications shall be the designated specifications or as amended. Project Schedule: Lead Company shall complete and deliver Participant's HDPE conduit ready for inner duct installation on or before October 15, 1998. Project Costs: Participant shall, in addition to purchasing its HDPE and delivering the HDPE to the Lead Company prior to installation, be responsible for: 1. GROUP TWO ELEMENTS as outlined in Exhibit B. PFL will pay the for these group two items as well as its pro rata share of the common bid items. 2. PFL agrees to pay a pro rata share of mobilization and 50% of the traffic control costs. If it is discovered that the construction methods for the conduit are responsible for more than 50% of the traffic control, PFL agrees to make the appropriate adjustment. 3. It is agreed that savings for both the City and PFL are in the range of 30% if the projects are combined. Both parties agree to split the savings 50/50. When the bids come in, PFL will pay the City of Yelm 115% of the actual PFL bid costs. 4. PFL will pay the City 10% for engineering based on the estimated construction costs. 5. PFL will pay the City 15% for construction contract administration and inspection based on the General Contractor's bid costs. 6. PFL will provide one(1) , four(4) inch duct for the City's sole undivided use. 7. PFL will pay the City an annual franchise fee of$1,000.00 due thirty(30) days after invoicing. 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