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HomeMy WebLinkAbout5092Contract Number: Vendor: Sub�ect: Department: File Class: Begin Date: End Date: Review Date: Vault Date: Comments : 5092 PUGET SOUND ENERGY, INC_ 4th Street Alley Underground Conversion Econ Devel LEG 12-1 11/2/2011 1/31/2012 1/31/2012 1/31/2014 �� t ' PUGET SOUND ENERGY The Energy To Do Great Things Exhibit "A" Project Plan Schedule 74 Underground Conversion City of Bremerton — Bremerton 4th Alley O/H to U/G Conversion PSE Project Number: 101068707 October 31 St , 2011 Pursuant to Puget Sound Energy ("PSE") Rate Schedule 74 and as described m tlus Pro�ect Plan, PSE will convert its exist.�ng overhead electrical distnbution system of 15,000 volts or less to an equivalent Underground Distnbution System. This Pro�ect Plan descnbes work to be performed by PSE and the City of Bremerton (the "Crty") for the conversion of certaui PSE electncal distnbution system facilities as descnbed herem (the "Conversion Project"). Construction of tlus Conversion Project is contingent upon and shall not commence pnor to both written acceptance of tlus Project Plan and written execution of a Schedule 74 Construction Agreement by the City and PSE Tlus Pro�ect Plan includes and consists of • Detailed descnption of the Construction Work to be performed • Construction Drawings, Standazds, Specificat�ons and Reqwrements for the Construction Work (attached) � Operating Rights to be obtamed for the Conversion Pro�ect (attached) • Construct�on Work Schedule • Construction Costs Estunate Summary (attached) Revisions to this Pro�ect Plan must be mutuall�pproved b�tv and PSE Scone of Work This Conversion Pro�ect will replace PSE's existing overhead electncal distnbuhon system wrth an Underground Distnbuhon System witlun the followuig area (the "Conversion Area") The alley south of 4` St between Park Avenue East and Pacific Avenue The Conversion Pro�ect is approxunately 700 feet m length, including laterals and road crossmgs This Pro�ect Plan and pncmg is based on the duct and vault being installed in one mobilization, the mstallation and energization of the underground system completed in two mobilizations and the removal of the existing overhead system bemg completed m one mobilization. If more that two mobilizations aze required to complete energization of the new underground system the cost will addressed as a change order The'Conversion Pro�ect includes modification or replacement of all existing services lines wittun the Conversion Area to connect to the Underground Distribution System and removal of PSE's C�ty of Bremerton 4'" St Alley Underground Convers�on p� � existing overhead electnc distnbution facilities (includmg PSE distnbution poles and pole mounted street lights) from the Conversion Area There are no Company Initiated Upgrades, Government Entrty Requested Upgrades or Temporary Service elements mcluded m the Conversion Pro�ect Scope of Work PSE imt�ated upgrades mcluded in tlus pro�ect consist of None. Crty requested upgrades mcluded in tlus proJect consist of• The installation of TUT's (Total Underground Transformers) within public Right of Wav. Temporary Service included in tlus pro�ect consists of None The following portions of PSE's existmg facilities to be converted are located outside of Public Thoroughfaze• None. In con�unction wrth this Conversion Pro�ect, PSE will remove its existmg street lightmg system from the Conversion Area Provision of a replacement street lighting system vv�thin the Conversion Area is not included in this Pro�ect Plan. Replacement street lighting service can be provided by separate arrangement in accordance wrth applicable PSE Tanff Schedules. Resnonsibilities of Parties Citv Itesponsibilities a) Provide wntten notice to customers vv�thm the Conversion Area in advance of Conversion Pro�ect 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 b) Coordinate other utilrty conversion, removal and relocation from PSE's poles c) Provide all surveying for equipment placement, locations, and establish a11 grade elevations for the Underground Distnbution System witlun the Conversion Area. d) Provide a11 necessary excavation, bedduig, backfill, off-srte disposal, site restoration and coordinahon for installation of the Underground Distnbut�on System. This includes trenclung, backfill, and restoration for cut-over and transfer of exishng underground system and service lines from the exishng overhead distnbution system to the new Underground Distnbution System e) Coordinate pnvate property trenching, excavation and restoration activity with pnvate property owners affected by this Conversion Pro�ect. � Provide flaggmg and traffic control as required for all work performed by the City g) Install and proof all ducts and vaults for the Underground Distnbution System (excluding work m ducts or vaults contaimng 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 venfication usmg 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 contams a pulling line C�ty of Bremerton 4'" St Alley Underground Convers�on Page 2 h) Provide PSE at least ten (10) busmess days notice pnor to the start of trenching actrvrty to allow for delivery of PSE matenals to the �ob site and schedulmg of PSE's on-srte Inspector Provide at least five (5) business days notice for scheduled delivery of vaults from the manufacturer i) Provide secure stagmg and storage area(s) for duct and vault matenals provided by PSE The Crty shall be responsible for the secunty and condition of these matenals until they are installed and accepted by PSE or returned to PSE's custody �) Provide labor and equipment for the off-loading of PSE duct matenals delivered to the �ob srte k) Promptly followmg notice from PSE that the Underground Distribution System has been energized, provide notice to customers withm the Conversion Area mformmg them of their obligation and responsibilrty to convert their overhead service lmes to underground service lines as provided by state law or to modify existing underground service lmes for connection to the Underground Distribution System. Affected service hnes are listed in the Service Lmes sechon of tlus Pro�ect Plan 1) Facilitate weekly (or as otherwise ageed by the City and PSE) construction coordmation meetmgs to include all relevant parties participahng in the conversion mcludmg PSE and it's contractor(s), the City and rt's contractor(s), and other utilrties m) Provide any necessary operatmg nghts for the installahon of PSE's facilities m accordance wrth PSE's Schedule 74 Section 3 and as mutually agreed by the PSE and the Crty Operating nghts are further addressed in the Operatang Rights sechon of tlus Project Plan n) Modify, reroute or replace service lines to Crty owned facilrties to connect to the Underground Distnbution System o) Following notification from PSE that Construction Work is complete, provide to PSE any Shared Government Costs as provided for m the Construction Agreement. Puget Sound Energv Responsibilities a) Provide all duct and vault matenals, cables, electncal eqwpment and components necessary for installation of the Underground Distnbution System b) Following notice from the Crty, delrver or cause to be delivered all duct and vault matenals to the designated staging/storage area(s) Acknowledge delivered quantihes and condrtion of duct and vault materials by signing sluppmg manifests c) Following notice from the City, provide inspection services needed for overseemg the proper mstallation of ducts and vaults by the Crty d) Accept delivery of the completed duct and vault system once the new system has been proofed (as descnbed above) by the City PSE will provide a mandrel to the City to be used in proofing of the duct and vault system e) Provide PSE electncal workers to complete duct mstallation and proofing when such work is performed at or m any energized vault containing energized cables or equipment. City of Bremerton 4'" St Alley Underground Conversion Page 3 � Install (except for ducts and vaults installed by the Crty) and energize the Underground Distnbuhon System Provide written notice to the City when the Underground Distnbution System is energized g) Perform cut-over and transfer of existing Underground Distnbution System and existing underground service lmes from the overhead distribution system to the new Underground Distnbution System where applicable (see Crty Responsibility rtem "d" concernmg trenching responsibiliTy). PSE will notify the Crty for excavation and the affected customers at least two (2) business days pnor to mstallation, transfer, and connection of underground service lmes Affected service lmes are listed in the Service Lines section of tlus Pro�ect Plan h) Install and connect replacement underground service lmes to smgle family residences and connect modified and replacement non-residential underground service lmes provided by customers witlun the Conversion Area pursuant to PSE Tanff Schedule 85 Affected service lines are listed m the Service Lmes section of this Pro�ect Plan i) Remove the exishng overhead electnc distnbuhon system mcluding, conductors, equipment, down guys, anchors and poles after a11 service lmes to customers v�nthm the Conversion Area aze connected to the Underground Distnbution System and all other utilrties have been removed from PSE's poles Holes left following removal of poles will be filled wrth crushed rock and compacted m accordance vv�th applicable Crty standards or specifications j) Provide flaggmg and traffic control as required for all work performed by PSE (except as may otherwise be reasonably provided by the Crty during installation of ducts and vaults in con�unchon vv�th CiTy performed trenclung, excavation, back-fill and restoration) k) Attend weekly (or as otherwise agreed by the City and PSE) construction coorduiation meetmgs facilitated by the Crty and rts contractor dunng penods of Conversion Pro�ect construction Oneratin� Ri�hts The Underground Distnbution System will be located wrtlun Public Thoroughfare except as descnbed in the Operating Rights Attachment. T'he Construction Work will not be released by PSE for construction until i) all operating nghts necessary for the installation of PSE's facilrties have been obtamed and have been verified by PSE, or ii) the Crty otherwise signs an agreement releasing PSE from any and a11 financial obligations associated v�nth the location or relocation of PSE facilities resulting from commencement of construction pnor to acquisrtion of all identified necessary operating nghts Constpuction Work Schedule The work will be performed m accordance vv�th the followmg Work Schedule, unless this schedule is revised by mutual agreement of the Crty and PSE or circumstances beyond the reasonable control of the City andlor PSE preclude such performance Installation of ducts and vaults: Fall of 2011, estimated durahon is 18 days for the entue pro�ect City of Bremerton 4'" St Aliey Undergound Convers�on Page 4 Installation and energization of the Underground Distribution Svstem: Winter of 2011, esrimated duration of the west phase is 3 days and the east phase is 4 days Removal of overhead facilities: Wmter of 2011, estimated durahon is 6 days Installation and removal of Temnorarv Service: No temporary services planned for tlus project Work Schedule Restrictions None. Constructio� Cost Estimate The estimated costs to perform the Construction Work and the allocation of costs between the parties are presented m the attached Construction Costs Estimate Summary These eshmated costs are valid for ninety (90) days from the date shown on the attached Construction Costs Estimate Summary If this Pro�ect Plan and a Schedule 74 Construction Agreement are not fully executed wrtlum m�ety (90) days from tlus date, the estunated costs sha11 be sub�ect to revision Estimated Inspection and Service Provider Outside Services costs are based on 2011 contract rates Costs for work performed by PSE after January 31, 2012 shall be sub�ect to revision to reflect contract rates wluch become effective after this date Further, in the event performance of the Construction Work does not proceed substanhally as provided in tlus Pro�ect Plan, PSE's estunated construction costs shall be sub�ect to revision Changes in Construction Work scope, performance andJor schedule can result in actual Construction Costs wluch sigruficantly differ from eshmated costs shown m the Construction Cost Estimate Summary. Such changes sha11 promptly be brought to the attention of PSE and the City when anticipated or known to occur and sha11 be documented m a Change Order mutually agreed by the City and PSE Proiect Assumptions The pro�ect design, construction plans and cost estimates are based on and reflect the follovv�ng assumptions Construction condrtions that are not consistent with these assumptions may result in a request for change or an equitable adjustment to pro�ect compensation under Section 6 of the Construction Agreement Cost AssumAtions 1. The Construchon Work will be performed m accordance v►nth the Construction Drawmgs and Construction Work Schedule 2 PSE's Pro�ect Manager will accept or re�ect (with wntten justificat�on) the duct and vault installation work performed by the City within five (5) busmess days notice of completion from the Crty In the event PSE re�ects any of the ducts or vaults (wit� reasonable wntten �ustification), the City will perform the necessary remedial work T'he City will then re- notify PSE and PSE shall have five (5) busmess days to accept or re�ect the remedial work City of Bremerton 4�' St Altey Underground Conversion Page 5 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 Pro�ect utilizsng normal cable pullmg equipment and methods 4 A Crty Street Use permrt is the only permrt necessary for PSE to perform rts work for this Conversion Pro�ect and will be issued wrthin two (2) weeks of PSE submittmg a complete permrt application (mcludmg any supporting documentation reasonably required by the City) There will be no charge for the permrt or mspection fees 5 The eshmated daily productivrty rate for PSE duct and vault mstallation is based on the Crty's contractor openmg a irunimum of 40 feet of trench per working day. The daily productivrty rate is used to estunate the number of days a PSE Inspector will be reqiured dunng installation of ducts & vaults The Inspector will be scheduled m full day mcrements and m one contmuous effort Changes to a contmuous schedule require a mmimum of five days advance notice and must be mutually agreed between the Crty and PSE 6 Traffic control provided by PSE assumes the use of two flaggers, basic signage and simple channelization wlule worlcing arterial Right of Ways Flaggmg has not been mcluded wlule working m the alley. If this becomes necessary, the addrtional cost vv�ll be covered by Change Order 7 Work to be performed by PSE does not include mstallation andJor removal of Temporary Service facilrties at the request of others dwmg construction. 8 All cut-over and transfer work v�nll be completed during regular working hours 9 New guy anchors shall be installed pnor to mstallation of new ducts in the same area 10. When Fluidized Thermal Backfill (FTB) is used, associated cost vv�ll be allocated 100% to PSE when required for a Company Irutiated Upgrade and otherwise 100% to the Crty 11 Installation of protective bollards may be necessary at some locations and may not be included in the pro�ect design In the event unplanned bollards are requued, associated costs will be a Shared Cost Schedule There will be a total of three (3) PSE crew mobilizahons as follows: one mobilization of an underground line crew for mstallation of underground conductors and equipment on the east end of the pro�ect and a second mobilization for mstallahon of underground conductors and equipment on the west end of the project The tlurd mobilization of an overhead line crew will be for removal of the exishng overhead facilrties on the ent�re pro�ect Once mobilized PSE crews will have continuous productive work until a11 PSE Construction Work is complete If all of the planned work within any given mobilization can not be completed in a contmuous effort, and rescheduling of the crew is required, addrtional costs will be covered by change order 2 All PSE Construction Work vv�ll be performed dunng regular workmg hours from 8•00 am to 5 00 excluding holidays In the event that lane closures are necessary for performance of work, PSE shall be limrted to workmg between the hours of 8•00 am to 5.00. PSE and the City vv�ll mutually agree to weekly work schedules for the Construction Work PSE shall be allowed to perform PSE work as scheduled without changes or mterruptions caused by other construction activrties City of Bremerton 4'" St Alley Underground Conversion Page 6 Work reqiuruig sc�eduled mterruption of electnc service (cut-overs and transfers) will be performed dunng the working hours specified m Schedule Assumption #2 above, and will be scheduled wrth at least two (2) busmess days notice PSE will notify customers of scheduled service mterruptions Additional Considerations Service Lines Service lmes witlun the Conversion Area must be modified or replaced to provide underground service from the Underground Distnbution System as described m and listed in the Construction Drawm�s Performance of the work and associated costs shall be governed by PSE Tanff Schedule 85 and will be schedule with Potelco service crews Cut-overs and Transfers PSE customers within the Conversion Area will expenence interrupt�on of electnc service during performance of the Construction Work when transfemng system and customer loads from the overhead distnbution system to the Underground Distnbution System PSE v�nll notify customers at least two (2) business days in advance of expected service interruptions Customers may request that cut-over and transfer work affectmg theu service be performed outside the regular worlcing hours listed above subject to the customer's wntten agreement to reimburse PSE for the addihonal cost (at overtime rates) to perform such work outside the regular workuig hours New Service Connection of new or increased load for City facilrties (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 Pro�ect has been designed and vv�ll be constructed in accordance wrth PSE design and construchon standazds in effect as of the date of this Project Plan PSE standazds applicable to Construction Work to be performed by the Crty have been provided to the Crty m PSE's "Electric Distribution TrenchlDuct/Vault Construchon Standards, 2009" All relevant PSE standard descnbed above are attached to tlus Pro�ect Plan by this reference Temporarv Suauort (Holdin�) of PSE Poles Whenever any pole(s) are required to be temporarily supported (held) due to excavation m proximiTy to such poles, the City will coordinate with PSE to provide such support The need to temporarily support such poles sha11 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 worlcing period of ten hours or less City of Bremerton 4'� St Alley Underground Conversion Page 7 Acceptance of Proiect Plan The City and PSE mutually agree to and accept this Pro�ect Plan as of the date mdicated below For the Crty of Bremerton. By � its 0 � Date �l� � � �� � For PSE g Z� Its /�/' C-�1 Date ��'�—�� City of Bremerton 4'" St Alley Undergound Conversion Page 8 0 � SCAL6=1 �0' �.� 'J� �� �J� ��' l� � � � 1±��J=+ � � � i� ���, � JJ + �� � _' i I I I I I I I I ! I �� I 1 I I /r � O � P C� � \ A Z � `. N � � � I � I 7 ' � �Z �� i � �``�`` l W � I� I I �) �•.. ��� � If) ��� f�0 j� -,,�, ��� I� I �� DPOSED 1 4 D 3 PHASE F — � � m �� ` • • '� � � �� 1D' EXISTING GAS METER 0' � � �� _ ( ___�J _ — _ _� � CURB OR EDGE OF PAVEMENT 5 MIN 5 — �— — MIN � 3 MIN I 3 TVP PAD � MIN & TRANS I FORMER COOLING FINS 3 MIN _ 1_ _ REQUIRED 5 MIN WORK SPACE I AREA � � 5 MIN I� ACCESS DOOR �— 10' MIN I �— ACCESS I I DOOR CONCRETEPAD ROAD OR PARKING AREA 6" )� 6 Crus�etl 4 � D Y CURB OR EDGE OF PAVEMEM �' MINIMUM CLEARANCES FOR PSE EQUIPMENT THREE PHASE TRNASFORMER AND EXCAVATION DETAIL NOT TO SCALE NOT TO SCALE MID # 7663900 PUG�I' BREMERTON 4TH ALL�If -OH TO UG CONV ElectOrder SOUND 4TH AVE FM PARK TO PACIFIC AVE, �itEMERTON WA, 98337 101068707 ENERGY SCALE PAGI DESIGNED BY � POTELCO INC 1" = 20' 1 THE INTENT OF THE PROPOSED EASEMENT IS TO GRANT PSE WITH ADEQUATE OPERATING RIC'iHTS TO INSTALL AND MAINTAIN ITS FACILITIES THE PROPOSED IS BASED ON A 15 FEET WIDE EASEMENT TO INS7ALL AND MAINTAIN THE UNDERGROUND CONDUIT AND PRIMARY CABLES PSE ALSO REQUIRES A 10 FOOT SQUARE EASEMENT AROUND THREE PHASE PAD MOUNT TRANSFORMERS THIS REQUIREMENT IS FOR WORKING SPACE AS WELL AS ACCESS TO THE TRANSFORMER AND THE TRANSFORMER ITSELF PLEASE REFER TO THE DETAILS SHOWN ON THIS PAGE FOR CLARIFICATION NOTE install bollards per this detad if transformers cannot be placed a mmimum of 5' from dnvable surFaces • S�M � P TRYi M � � ypypyy Jd Y Y fRUNf QD '�" s 1 COxUETE Y T GYMO S 6 Po8f6 � 1 i ` � � GWRDPOSTINSTNIATON cwrmros*�ounaa --- wo. ee.n ...rw weamonaew..u.mrwa.n. � 9 �� n bwMlrAM40sYO�P��KM/M TM u w r n„e M„. ,,,.,,. n m„c,, o.. w w p n a z m w� a a. n .w..e w�m. a a. we+�x r P.ew wrc wa ��r�w. sr�.�r�.�.e.wrn.wlw..n.r ron �wawrmmw r.w�.wweweeiK r�m�. va m.w�r�aw.oawro��r+a+ GUARD POST INSTALLA710N NOT TO SCALE eumn.nnmo�wnm�auu�' «rrn.mm�woewumm.�rr »ro ��i�.., 6ceavation 10.1�oubicyaMs � � B"" �../' ��� ��1.�,/ �� d�����,i � 7 he Energy To Do Greaf Things Date 11/2/2011 Pro�ect 7itle Bremerton Convers�on 4th, Park to Burwell Pro�ect Descr�ption Convert the existing OH distribution system to UG �n the alley between Burwell and 4th from Park to Pacif�c Rate Schedule 74 Pro�ect Manac�er / Phone # Dennis Booth 253-606-4T87 Pro�ect Enc�ineer ! Phone # V�nce Rabon 253-395-7131 IVlumcipal Liaison Ntgr / Phone # Tom Brobst 360-475-7020 Pro�ect # 1Q1068707 Revis�on # 0 Revision Date Construction Costs Est�mate Summarv �� Company Labor Matenals Equipment Inspection Service Provider Outside Services Operating Rights Entity Prroate Shared Costs' Conversu Est�mate Estimati $ - $ $ 55,300 $ $ - $ $ 17,900 $ $ 82,800 $ $ - $ $ 29,200 $ $ - $ Q _ � Construction Costs Totals"� $ 185,200 �$ :cted allocation of Est�mated Construction Costs at pany $ 111,100 :rnment Entdy $ 74.100 Prior Total 100% GE Gov Req Temporary ConvlReloc Reimbursable U rade Services Withm 5 Years Costs Estimate Estimate Estimate Est�mate - $ - $ - $ 49,400 $ - $ - $ - $ - $ - $ - $ - $ - $ _ � o dnn e I I - $ - $ - $ 58,800 $ m of Construction Work - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ No es ' Estimate prepared m acco�dance with Sections 6& 71 of Schedule 74 Design Agreement and Section 7 of Schedule 74 Construcdon Agreement 2 All amounts shown in th�s estimate are rounded up to the next $100 3 Shared Costs are allocated 40% to the Government Entity and 60% to the Company if the Conversion Pro�ect is completed • " Total Costs excludes Government Entity costs of Venching, restoration, and surveying 5 This estimate presentation may not include eligible esUmated Government Entity costs and may be incomplete 0 Construction Estimate 100% PSE Construction Costs Costs Totalsa s Estimate Est�mate - $ - $ 49,400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,400 $ - $ - $ - $ - $ - $ 58,800 $ - $ 104,700 17,900 82,800 244,000 $ - I $ 111,100 $ 132.900 Pnnted 11/2/201� � 29 PM SCHEDULE 74 UNDERGROUND CONVERSION Project Construction Agreement Pro�ect Name City of Bremerton 4�' Street Alley Underground Conversion Pro�ect Number Order # 101068707 THIS Agreement, dated as of this 2nd day of November, 2011, is made by and between City of Bremerton, (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 distnbution of electric energy, and pursuant to its franchise or other nghts from the Government Entity, currently locates its electric distribution facdities within the �unsdictional boundanes of the Govemment Entity B The Government Entity has determmed that it is necessary to replace the existmg overhead electric distnbution system withm the area specified in the Pro�ect Plan (as defined below) (the "Conversion Area") with a comparable underground electric distnbution system, all as more specifically descnbed in the Pro�ect Plan (the "Conversion Pro�ecY') C The Govem enuF�� and the Company have previously entered mto a Pro�ect Design Agreement dated as of �aa 3, 2011 (the "Des�gn AgreemenY'), pursuant to which the parties completed certain engmeering design, cost assessment, operatmg rights plannmg and other preliminary work relatmg to the Conversion Pro�ect and, in connection with that effort, developed the Pro�ect Plan D The Government Entity and the Company w�sh to execute this written contract in accordance with Schedule 74 of the Company's Electr�c Tariff G("Schedule 74") to govern the completion of the Conversion Pro�ect, which both parties mtend shall qualify as an underground conversion under the terms af Schedule 74 AGREEMENT The Govemment Entity and the Company therefore agree as follows 1 Defirntions (a) Unless specifically defined otherwise herem, all terms defined in Schedule 74 shall have the same meanmgs when used in this Agreement, mcluding, without limitation, the following i) Cost of Conversion, u) Public Thoroughfare, m) Temporary Service, iv� �renchmg and Restoration, v) Underground Distnbution System, and vi) Underground Service Lines (b) "Company-Initiated Upgrade" shall mean any feature of the Underground Distribution System wh�ch rs required by the Company and is not reasonably requ�red to make the Underground Distnbution System comparable to the overhead distnbution system bemg r�placed �or purposes of the foregoing, a"comparable" system shail include, unless the Parties otherw� agree, the number of empty ducts (not to exceed two (2), typically having a diameter nffi"� �ess) ConstructiDn Agreement, Attachment "B" to Schedule 74, Page 1 4' St Alley 101068707 of such diameter and number as may be speafied and agreed upon in the Pro�ect 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 Pro�ect 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 Pro�ect Plan and as changed and ad�usted from time to time m 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 Pro�ect Plan and as changed and ad�usted from time to time m accordance with Section 6, below (� "Estimated Shared Company Costs" shall mean the Company's good faith estimate of the Shared Company Costs, as specified in the Pro�ect 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 m the Pro�ect Plan and as changed and ad�usted from time to time in accordance with Section 6, below (h) "Govemment-Requested Upgrade" shall mean any feature of the Underground Distnbution 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 the Company, the Government Entity, or both �) "Private Property Conversion" shall mean that portion, if any, of the Conversion Pro�ect 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 (u) pursuant to nghts not derived from a franchise previously granted by the Government Entity or pursuant to nghts not otherwise previously granted by the Government Entity (k) "Pro�ect Plan shall mean the pro�ect 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 Pro�ect Plan includes, among other thmgs, (i) a detaded description of the Work that is required to be performed by each Party and any third party, (n) the applicable requirements and speafications for the Work, (ni) a descnption of the Operatmg Rights that are required to be obtained by each Party for the Conversion Pro�ect (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 (I) "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 attnbutable to a Pnvate Property Conversion, less (u) the distnbution pole replacement costs (if any) that would be avoided by the Company on account of such Pnvate Property Conversion, as determined consistent with the appiicable Company distribution facilities Construction Agreement, Attachment "B" to Schedule 74, Page 2 4 St Alley 101068707 replacement program, plus (ui) �ust 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 attnbutable to the Costs of Conversion under subparagraph (i) of this paragraph shall not exceed the Estimated Reimbursable Private Conversion Costs without the prior wntten authorization of the Government Entity (n) "Reimbursable Temporary Service Costs" shall mean all costs incurred by the Company which are attnbutable to (i) any facdities mstalled as part of the Conversion Pro�ect to provide Temporary Service, as provided for in Schedule 74, and (ii) the removal of any facdities 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 wntten authonzation of the Government Entity (o) "Reimbursable Upgrade Costs" shall mean all Costs of Conversion mcurred 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 authonzation 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) mcurred by the Company m connection with the Conversion Pro�ect, provided, however, that the Shared Company Costs shail not exceed the Estimated Shared Company Costs without the pnor written authorization of the Govemment Entity For the avoidance of doubt, the "Shared Company Costs" shall, as and to the extent specified in the Design Agreement, mclude the actual, reasonable costs to the Company for the "Design Work" performed by the Company under the Design Agreement (q) "Shared Govemment Costs" shall mean all Costs of Conversion incurred by the Government Entiry in connection with (i) any duct and vault installation Work which the Parties have specified m the Pro�ect Plan is to be performed by the Government Entity as part of the Govemment Work, and (n) the acquisition of any Operating Rights which the Parties have, by mutual agreement, specified m the Pro�ect Plan are to be obtained by the Government Entity for the Conversion Pro�ect, but only to the extent attnbutable to that portion of such Operatmg Rights which is necessary to accommodate the facdities of the Company, provided, however, that the Shared Govemment Costs shall not exceed the Estimated Shared Government Costs without the prior written authonzation 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 (u) costs associated with any �omt use of trenches by other utdities as permitted under Section 3(b) (s) "Work" shall mean all work to be pertormed m connection with the Conversion Pro�ect, as more specifically described in the Pro�ect Plan, mcludmg, without limitation, the Company Work (as defined in Section 2(a), below) and the Government Work (as defined in Sect►on 3(a), below) (t) "Work Schedule" shall mean the schedule specified m the Pro�ect 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 Obliaations of the Companv (a) Sub�ect to the terms and conditions of this Agreement, the Company shall do the followmg as specified in, and in accordance with the design and construction specifications and other requirements set forth in, the Pro�ect Plan (the "Company Work") Construction Agreement, Attachment "B" to Schedule 74, Page 3 4� St Alley 101068707 i) furrnsh and install an Underground Distnbution System within the Conversion Area (excluding any duct and vault installation or other Work which the Parties have specified m the Pro�ect Plan is to be performed by the Government Entity), n) 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 m the Pro�ect Plan is to be performed by the Government Entity, and ni) upon connection of those persons or entities to be served by the Underground Distnbution System and removal of facdities of any other utdities that are connected to the poles of the overhead system, remove the existmg overhead system (includmg associated wires and Company-owned poles) of 15,000 volts or less withm the Conversion Area except for Temporary Services (b) Upon request of the Government Entiry, the Company shall provide periodic reports of the progress of the Company Work identifying (i) the Company Work completed to date, (u) the Company Work yet to be completed, and (ui) an estimate regarding whether the Conversion Pro�ect 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 m the Company's Electric Tariff G, the Company shall own, operate and maintam all electncal facdities installed pursuant to this Agreement including, but not limited to, the Underground Distnbution System and Underground Service Lmes (d) Sub�ect to the terms and conditions of this Agreement, the Company shall perform all Company Work m accordance with the Pro�ect Plan, the Work Schedule and this Agreement 3 ObliQations of the Government Entitv (a) Sub�ect to the terms and conditions of this Agreement, the Government Ent�ty shall do the following as specified m, and m accordance w�th the design and construction specifications and other requirements set forth m, the Pro�ect Plan (the "Government Work") i) provide the Trenching and Restoration, u) perform the surveymg for alignment and grades for ducts and vauits, and ni) perform any duct and vault installation and other Work which the Parties have specified in the Pro�ect Plan is to be performed by tMe Govemment Entity (b) Other utdities may be permitted by the Government Entity to use the trenches provided by the Government Entity for the installation of their facdities so long as such facdities or the mstallation thereof do not interfere (as determmed pursuant to the Company's electrical standards) with the Underground Distnbution System or the mstallation or maintenance thereof Any such use of the trenches by other utdities shall be done sub�ect to and m accordance with the �oint trench design specifications and installation drawings set forth or otherwise identified m the Pro�ect 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 shali 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 (ui) an estimate regarding whether the Convers�on Pro�ect 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 withm the Conversion Area Construction Agreement, Attachment "B" to Schedule 74, Page 4 4"' St Alley 101068707 (e) Sub�ect to the terms and conditions of this Agreement, the Government Entity shall perform all Government Work in accordance with the Pro�ect Pian, 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 Pro�ect Plan Changes to the Work Schedule shall be made only in accordance with Section 6, below (b) Promptly followmg the execution of this Agreement, and upon completion by the Government Entity of any necessary prelimmary work, the Government Entity shall hold a pre-construction meetmg involving all participants in the Conversion Pro�ect to review pro�ect design, coordmation requirements, work sequencing and related pre-mobdization requirements Foliowing the pre- construction meeting, the Government Entity shall give the Company written notice to proceed with the Work at least ten (10) busmess days prior to the commencement date specified in the Work Schedule (c) Sub�ect 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 pertorms the Company Work m accordance with the Work Schedule, the Company shall not be iiable to the Govemment Entity (or its agents, servants, employees, contractors, subcontractors, or representatives) for any claims, actions, damages, or liabdity asserted or ansmg out of delays in the Work Schedule 5 Location of Fac�lities All facdities of the Company installed withm the Conversion Area pursuant to this Agreement shall be located, and all related Operating Rights shall be obtamed, in the manner set forth in the applicable prov�sions of Schedule 74, as specified by the Parties in the Pro�ect Plan 6 ChanQes (a) Either Party may, at any time, by written notice thereof to the other Party, request changes in the Work withm the general scope of this Agreement (a "Request for Change"), including, but not limited to (i) changes in, substitutions for, additions to or delet�ons of any Work, (u) changes m the specifications, drawings and other requirements in the Pro�ect Plan, (uQ changes m the Work Schedule, and (iv) changes m the location, alignment, dimensions or design of items included in the Work No Request for Change shall be effective and binding upon the Partres unless s�gned by an authorized representative of each Party (b) If any change mcluded m an approved Request for Change would cause a change in the cost of, or the time required for, the pertormance of any part of the Work, an equitable ad�ustment shall be made m the Est�mated 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 m good faith with the ob�ective of agreemg in wnting on a mutually acceptable equitable ad�ustment If the Parties are unable to agree upon the te�ms of the equitable ad�ustment, either Party may submit the matter for resolution pursuant to the dispute resolution provisions m 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 ad�usted from time to time to reflect any change in the costs or time required to pertorm the Work to the extent such change is caused by (i) any Force Ma�eure Event under Section 11, below, (n) the discovery of any condition withm the Conversion Area which affects the scope, cost, Construction Agreement, Attachment "B" to Schedule 74, Page 5 4�' St Alley 101068707 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 (ui) any change or maccuracy m any assumptions regardmg the scope, cost, schedule or other aspect of the Work which are expressiy identified by the Parties in the Pro�ect Plan Upon the request of either Party, the Parties wdl negotiate in good faith with the ob�ective of agreemg in wntmg on a mutually acceptabie equitable ad�ustment If, at any time thereafter, the Parties are unable to agree upon the terms of the equitable ad�ustment, either Party may submit the matter for resolution pursuant to the dispute resolution provisions m Section 10, below (d) Notwithstanding any dispute or delay in reaching agreement or arriving at a mutually acceptable equitable ad�ustment, 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 requestmg Party's reasons for re�ecting the proposed equitable ad�ustment of the other Party 7 Compensation and Pavment (a) Sub�ect to and in accordance with the terms and conditions of this Agreement (mcluding, without limitation, the payment procedures set forth m this Section 7), payment in connection with the Conversion Pro�ect and this Agreement shall be as follows i) The Total Shared Costs shall be ailocated to the Parties m the followmg percentages (A) sixty percent (60%) to the Company, and (B) forty percent (40%) to the Government Entity u) The Government Entity shall pay one hundred percent (100%) of all Reimbursable Pnvate Conversion Costs, if any ni) The Govemment Entity shall pay one hundred percent (100%) of aii Reimbursable Upgrade Costs, if any iv) The Government Entity shall pay one hundred percent (100%) of all Reimbursab�e Temporary Sennce 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 spec�fied in Section 3(a)(i) and (u) (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-Irntiated Upgrade vn) The Company shall pay one hundred percent (100%) of the costs it incurs to obtam Operating Rights outside the Public Thoroughfare (b) Based on the allocation of responsibilities set forth m Section 7(a), above, the Parties shall determme the net amount payable by the Government Entity or the Company, as applicabie, to the other Party under this Agreement (the "Net Amount") The Net Amount shall be determmed by usmg the amount of the Total Shared Costs allocated to the Government Entity under Section 7(a)(�), and ad�usting such amount as follows i) Subtractmg (as a credit to the Government Entity) the amount of the Shared Government Costs u) Adding (as a credit to the Company) the amount of all Reimbursable Pnvate Conversion Costs, Reimbursable Upgrade Costs and Reimbursabie Temporary Service Costs ui) 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 th�s Agreement The Net Amount, as so calculated, (A) wdl 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 4' St Alley 101068707 (c) Withm sixty (60) busmess days of completion of the Conversion Pro�ect, the Government Ent�ty shall provide the Company with an itemization of the Shared Government Costs (the "Government Itemization"), together with such documentation and mformation 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 Entiry, including any costs of obtammg Operating Rights, and (n) construction costs incurred and/or paid by the Government Entity, includmg and listmg separately inspection, labor, materials and equipment, overhead and all costs charged by any agent, contractor or subcontractor of the Government Entity (d) Withm 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, (n) the Parties' relative share of the Total Shared Costs based on the Company's item¢ation of the Shared Company Costs and the Government Entity's itemization of the Shared Government Costs set forth in the Government Item¢ation, (ui) any Reimbursable Pnvate 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 (viQ the Net Amount, as determmed m 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 mciuded in the Company Statement shall, at a minimum, break down the Shared Company Costs by the foliow�ng categones, as applicable (i) design and engineer�ng costs, and (n) construction costs, includmg and listmg separately inspection, labor, materials and equipment, overhead and all costs charged by any agent, contractor or subcontractor of the Company (e) Withm thirty (30) busmess days after the Government Entity's receipt of the Company Statement and requested documentation and mformation, the Net Amount shall be paid by the owing Party to the other Party, as specified m the Company Statement 8 Indemnification (a) The Government Entity releases and shall defend, indemrnfy and hold the Company harmless from all claims, losses, harm, liabdities, damages, costs and expenses (includmg, but not limited to, reasonable attorneys' fees) caused by or ansing out of any negligent act or omission or wdiful misconduct of the Government Entity m its performance under this Agreement Dunng 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 ansmg out of any negligent act or omiss�on or wdlful misconduct of the Company in its pertormance under this Agreement During the pertormance of such activities the Company's employees or contractors shall at all times remam employees or contractors, respectively, of the Company (c) Solely for purposes of enforcmg the mdemnification obligations of a Party under this Section 8, each Party expressly waives its immunity under Title 51 of the Revised Code of Washmgton, the Industrial Insurance Act, and agrees that the obiigation to mdemnify, defend and hold harmless provided for m this Section 8 extends to any such claim brought against the indemnified Party by or on behalf of any employee of the mdemnifymg Party The foregomg waiver shall not m any way preclude the indemnifying Party from raismg such immunity as a defense agamst any claim brought against the indemnifying Party by any of its employees Construction Agreement, Attachment "B" to Schedule 74, Page 7 4 St Alley 101068707 9 Conversion of Service to Customers withm 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 facdities are avadable in accordance with RCW 35 96 050 Upon the request of any customer, other than a smgle famdy residential customer, withm the Conversion Area, the Company shall remove the overhead system and connect such persons' and entities' Underground Sennce Lines to the Underground Distribution System (b) The Parties acknowledge that single famdy residences withm the Conversion Area must (i) provide a service trench and conduit, m accordance with the Company's specifications, from the underground meter base to the pomt of service provided durmg the conversion, and (n) pay for the secondary service conductors as defined m Schedule 85 of the Company's Electnc Tariff G The Government Entity shall exercise its authority to order disconnection and removal of overhead facdities with respect to owners fadmg 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 concerrnng this Agreement must first be presented to and considered by the Parties A Party who wishes dispute resolution shall notify the other Party m wntmg as to the nature of the dispute Each Party shall appomt a representative who shall be responsible for representmg the Party's interests The representatives shall exercise good faith efforts to resolve the dispute Any dispute that is not resolved withm ten (10) business days of the date the disagreement was first raised by wntten notice shall be referred by the Parties' representatives in wntmg to the sernor management of the Parties for resolution In the event the sernor management are unable to resolve the dispute within finrenty (20) busmess days (or such other penod 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 arismg hereunder which relates to any Request for Change or any equitable ad�ustment under Section 6, above, or the compensation payable by or to either Party under Section 7, abov�, and which is not resolved by senior management withm the time permitted under Section 10(a), above, shall be resolved by arbitration m Seattle, Washington, under the Construction Industry Arbitration Rules of the Amencan Arbitration Assoc�ation then in effect The decision(s) of the arbitrator(s) shall be fmal, conclusive and bmding upon the Parties All other disputes shal� be resolved by litigation in any court or governmental agency, as appticable, havmg �urisdiction over the Parties and the dispute (c) In connection with any arbitration under this Section 10, costs of the arbitrator(s), heanng rooms and other common costs shall be divided equally among the Parties Each Party shall bear the cost and expense of prepanng and presenting its own case (mcludmg, 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 (includmg, but not limited to, reasonable attorneys' fees) by the other Party (d) Unless otherwise agreed by the Parties m writmg, the Parties shall continue to perform their respective obligations under this Agreement dunng the pendency of any dispute Construction Agreement, Attachment "B" to Schedule 74, Page 8 4'" St Alley 101068707 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 �ts reasonable control (a "Force Ma�eure Event"), then that Party's performance shall be excused durmg the Force Ma�eure Event Force Ma�eure Events shall include, without limitation, war, civd disturbance, flood, earthquake or other Act of God, storm, earthquake or other condition which necessitates the mobdization of the personnel of a Parry or its contractors to restore utdity service to customers, laws, regulations, rules or orders of any governmental agency, sabotage, strikes or simdar labor disputes involving personnel of a Parky, �ts contractors or a third party, or any fadure or delay in the performance by the other Party, or a third party who is not an employee, agent or contractor of the Party claimmg a Force Ma�eure Event, m connection with the Work or this Agreement Upon removal or termination of the Force Ma�eure Event, the Party claiming a Force Ma�eure 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 Ma�eure Event 12 Insurance (a) PSE shall, and shall require each of its contractors to, secure and maintam m force throughout the duration of the Conversion Pro�ect (or, if sooner, until termination of this Agreement) comprehensive general liabdity insurances, with a mmimum coverage of $1,000,000 00 per occurrence and $2,000,000 00 aggregate for personal in�ury, and $1,000,000 00 per occurrence/ aggregate for property damages, and professional liabdity insurance m the amount of $2,000,000 00 (b) The Government Entity shall ensure that each of its contractors pertorming any Govemment Work secures and maintams m force throughout the duration of the Conversion Pro�ect (or, if sooner, untd termmation of this Agreement) insurance policies havmg the same coverage, amounts and limits as specified Section 12(a), above (c) In lieu of the insurance requirements set forth m Section 12(a), above, the Company may self- insure agamst such nsks m such amounts as are consistent with good utdity practice Upon the Govemment Entity's request, the Company shall prowde the Government Entity with reasonable written evidence that the Company is maintainmg such self-insurance 13 Other (a) Aqreement Subiect To Tanff This Agreement is sub�ect to the General Rules and Provisions set forth in Tanff Schedule 80 of the Company's electrical Tanff G and to Schedule 74 of such Tanff as approved by the Washmgton Utdities and Transportation Commission and m effect as of the date of this Agreement (b) Termination The Government Entity reserves the nght to termmate the Conversion Pro�ect and this Agreement upon written notice to the Company in the event that the Government Entiry terminates the Conversion Pro�ect and this Agreement, the Government Entity shall reimburse the Company for all costs reasonably mcurred by the Company in connection with the Work performed prior to the effective date of termmation In such event, the costs reimbursable to the Company (i) shall not be reduced by any Shared Government Costs or other costs mcurred by the Government Entity, and (») shall be paid withm thirty (30) days after the receipt of the Company's mvace therefor Sections 1, 5, 7, 8, 9, 10, 11 and 13 shall survive any termmation of the Conversion Pro�ect and/or this Agreement (c) Facdities Greater Than 15,000 Volts Nothing m this Agreement shall in any way affect the nghts or obligations of the Company under any previous agreements pertaining to the ex�sting or future facdities of greater than 15,000 Volts within the Conversion Area Construction Agreement, Attachment "B" to Schedule 74, Page 9 4 St Alley 101068707 (d) Compliance With Law The Parties shall, in performing the Work under this Agreement, comply with all applicable federal, state, and locai laws, ordinances, and regulations (e) No Discrimmation The Company, with regard to the Work pertormed by the Company under this Agreement, shall comply with all applicable laws relating to discrimmation 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 matenals or supplies (� 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 act�ng for the Government Entity m performmg the Work Nothing m this Agreement shall be considered to create the relationship of empioyer and employee between the Parties Neither the Company nor any employee of the Company shall be entitled to any benefits accorded employees of the Govemment Entity by virtue of the Work or this Agreement The Government Entity shall not be responsible for withholdmg or otherwise deducting federal mcome tax or social secunty or contributing to the State Industnal insurance Program, or otherwise assuming the duties of an employer with respect to the Company, or any employee of the Company (g) Nonwaiver of Riphts or Remedies No fadure or delay of either Party to insist upon or enforce strict pertormance 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 relmquishment of any right under any provision of this Agreement or any nght at law or equity not otherwise provided for herein The express waiver by either Party of any nght or remedy under this Agreement or at law or eqwty in a particular instance or circumstance shall not constitute a waiver thereof in any other instance or c�rcumstance (h) No Third Partv Beneficianes There are no third-party beneficianes of this Agreement Nothmg contamed m this Agreement is intended to confer any right or interest on anyone other than the Parties, their respective successors, assigns and legal representatives (i) Govemmental Authoritv This Agreement is sub�ect to the rules, regulations, orders and other requirements, now or hereafter m effect, of all governmental regulatory authorities and courts having �urisdiction over this Agreement, the Parties or either of them All laws, ordinances, rules, regulations, orders and other requirements, now or hereafter m 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 �) No Partnership This Agreement shall not be mterpreted or construed to create an association, �oint venture or partnership between the Parties or to impose any partnership obl�gations or liability upon either Party Further, neither Party shall have any right, power or authority to enter into any agreement or undertakmg for or on behalf of, to act as or be an agent or representative of, or to otherwise bind the other Party (k) Severabditv In the event that any provision of this Agreement or the applicat�on of any such provision shall be held invalid as to either Party or any circumstance by any court havmg �urisdiction, 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 m 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 4' St Alley 101068707 (I) Notice Any notice under this Agreement shall be in wnting and shall be faxed (with a copy followed by mad or hand delivery), delivered m person, or mailed, properly addressed and stamped with the required postage, to the mtended recipient as foilows if to the Government Entitv If to the Companv City of Bremerton Mr Gary Sexton 345 6 St Swte 600 360-981-1025 Fax 360-473-5278 Puget Sound Energy, Inc 6522 Kitsap Way Bremerton, WA 98312 Attn Thomas M Brobst Fax 360-475-7019 Any Party may change its address specified m this Section 13(I) by giving the other Party notice of such change in accordance w�th 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 Washmgton (without reference to rules governmg conflict of laws), except to the extent such laws may be preempted by the laws of the United States of America (n) Entire AQreement This Agreement constitutes the entire agreement of the Parties with respect to the sub�ect matter hereof and all other agreements and understandings of the Parties, whether written or oral, with respect to the sub�ect matter of this Agreement are hereby superseded in their entireties, provided, however, that except as expressly set forth in this Agreement, nothing herem is intended to or shall alter, amend or supersede the Design Agreement and the same shall remain m full force and effect m accordance with its terms (o) Successors and Assigns This Agreement shall be bmdmg upon and inure to the benefit of the respective successors, assigns, purchasers, and transferees of the Parties, mcludmg but not limited to, any entity to which the nghts 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 busmess organization or division thereof Government Entity City of Bremerton BY� C�-���� ITS � � � Date Signed �� � d �" � Company PUGET SOUND ENERGY, INC BY ` iTS /Z? �-1�'l Date Signed ��'- �' �/ � :. . -. . . - � j✓ _ / Construction Agreement, Attachm�rrt "B" to Schedule 74, Page 11 4' St Alley 101068707