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HomeMy WebLinkAboutSubscription Agreement to Master Agreement for the NW One Call Subsurface Warning System - 1986 r . . 7, II . . , I , . c: . , I , ( ( . I , .J . \ E:>QUBIT C Subscription Agreement to Master Agreement for The Northwest One Call Subsurface Warninq System The< cnder~igncd tcreby subrcribEs and "g!';:;~3 to the ~ster Agner:.ent for The Northwest One Call Subsurface Warning System, dated as of April 1, 1986, as the same may have been or may be amended from time to time (the "Wister Agreement"). All t e ons defined in the lo'..as t e r 1-.greement shall hav.a the sam~ meaning \Then used in this Sll.b~cription 1-.greement. l. By execution of this Subscription AgreemEnt, the undersigned agrees to become a "Party" under and to be boLUld by the provisions of the Master Agreement. 2. The undersigm.d owns or operates the following type(s) of subsurface utility facilities: o Electric )( Water o Gas o Cable Television [) Telepho:-.e o C~mm~~ications )t( Slreets and Roadways o Transmission Pip~lines X (Y.-l--",- Sewer (Sanitary & Storm) '-....- .. 3. This Su.cscription 1-.greernent shall apply to the LUldersigned's subsurface utility faci 1i ties in the following Counties, together with any adCiticr:.:.l CO'_,':.':'S'''.: i..S t-:> which the: S~rvi.c~ r.::y r€ providsd with rCl3fect to the undersigned's subsurface facilities: Gallatin County, State of Montana 4. MY notice, request, designation, direction, statement or other communication under the Agreement may be delivered or mailed to the undersigned at tho following address: City of Bozeman p. o. Box 640 Bozeman, MT 59771-0640 1I.ttention: Phillip J. Forbes "/" . . ' 'r i l . . . , ( ( ( I 1 5. The undersigned acknowledges its receipt and examination of a copy of the Master Agreement and related documentation and has fully satisfied itself as to the nature and extent of its rights and obligations thereunder. Dated: March 13 . 19~ City STATE OF MONTANA ) ) 55. COUNTY OF ) On this 13th day of March . 1989 . before me. the undersigned. a Notary Publi c in and for the State of Montana. duly cc~is~io~ed and sworn. per~onally appeared James E. Wysocki . to me known to be the __City Manaqer of the City of Bozeman . the corporation that executed the within and foregoing instrUlT'ent. end acknowledged said in~trument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned. and on oath stated that James E. Wysocki was duly elected. qualified and acting as said officer of the corporation. that James E. Wysocki was authorized to execute said instrument and that the seal affixed. if any. is the corporate seal of said corporation. GIVEN UNDER my hand and official seal hereto affixed the day and year in this certificate above written. for of Montana. residing at My Appointment Expires: 1/J'I/t6 '\ J , . '. " . . l ~ I ( \ MASTER AGREEMENT for The NORTHWEST ONE-CALL SUBSURFACE WARNING SYSTEM ( Dated: April 1, 1986 ~ ( ~~ - .-- - ._~ -~- ,~~- ~. __" _, ~__._ ..'~ nlo...........'..,,~.,..:__ .. ',',-p "~',_. . ~.. . .n'" . ,... .''''''_'.'.. , , , . .- , , i . . , TABLE OF CONTENTS Page Section 1 . Definitions ....................... 1 1.1 Specified Definitions ................ 1 1.2 Cross-References to Additional Definitions ... .... ........... ...... 4 . Section 2. Performance of the Service ........ 4 2.1 General .......... ..... .......... ..... 4 2.2 Appointment of Committee as Agent . . . . 4 2.3 Committee Policies, etc. ............. 5 2.4 Specific Requirements ................ 5 2.5 Equal Opportunity Compliance . . . . . . . . . 5 Section 3. The Committee ..................... 6 3.1 Composition ......... .............. ... 6 3.2 Committee Members .................... 6 3.3 Manner of Acting by the Committee . . . . 7 3.4 Voting of the Committee .............. 7 ( Section 4. Payment and Allocation of Common Costs ..... ... ..... ... ........ ..... a 4.1 Establishment of Charges ............. a 4.2 Charges Based on Common Costs ........ a 4.3 Payment of Excess Common Costs ....... 9 4.4 Payment ...... .......... ......... ..... 9 4.5 Sponsor's Right to Cure Default ...... 9 4.6 Bank Accounts ...... ............... ... 9 4.7 Books and Records .................... 10 Section 5. Changes in Parties in the Service ~ ....... ........... .... ..... ... 10 5.1 Additional Parties ................... 10 5.2 Expansion of the Service Area ........ 10 5.3 Termination of participation As to Any County ...................... 11 5.4 Withdrawal As a Party ................ 11 " ( -1- - ..., ".-. --+-' ~- , , , I .. , r , Section 6. Insurance ............ ....... ...... 12 6.1 Insurance Program ................... 12 6.2 Policy Provisions ................... 12 6.3 Evidence of Insurance ............... 13 Section 7. Committee Determinations and Other Orders ..................... 13 7.1 General ........... ..... ............. 13 7.2 Resolution of Controversies ......... 13 7.3 Protest of Committee Orders ......... 13 Section 8. Relationship of the Parties ...... 14 8.1 No Partnership ...................... 14 8.2 The Contractor ....................... 14 8.3 No Third Party Beneficiaries ........ 14 8.4 No Dedication of Facilities . . . . . . . . . 14 8.5 Several Obligations ................. 14 8.6 Tax Exempt Status ................... 15 Section 9. Miscellaneous .................... 16 9.1 Excused Performance ................. 16 9.2 Communications ...................... 16 9.3 Entire Agreement .................... 16 9.4 Amendment ............. ... ............ 16 9.5 Implementation ...................... 16 9.6 Nonwaiver ............ ............ ... 17 9.7 Severability . . . . . . . . . . . . . . . . .. . . . . . . . 17 9.8 Headings ........... ... ............... 17 9.9 Governing Law ....................... 17 9.10 Forum Selection ..................... 17 9.11 Successors and Assigns .............. 17 9.12 Disposition of Assets .at the End of. . Term ................ .............. 17 List of Exhibits .... ...... ................ 18 (' -i1- " -- ~ -- , . , ~ , r j Master Agreement < , for The Northwest One-Call Subsurface Warning System This Agreement, dated as of August 1, 1986, is made and entered into by and between those parties who from time to time subscribe to this Agreement (collectively, the "Parties"; individually a "Party"). The Parties on the date of this Agreement are listed in the attached Exhibit A. Recitals A. Each Party owns, operates or conducts activities affecting subsurface utility facilities (including, but not necessarily limited to, any electric, gas, telephone, water, cable television or communications distribution system). B. Each Party desires to protect its subsurface utility facilities from damage, interruption or interference by anyone who intends to excavate, drill, blast or perform other work that might disturb the surface or subsurface of the earth. C. In order to help protect their respective subsurface utility facitilities, the Parties have established a service ( (as the same may be modified from time to time, the "Service") by which anyone who intends to excavate, drill, blast or perform other work which might disturb the surface or subsurface of the earth within certain counties in which such facilities are located may call a single telephone number to notify the Parties affected by the proposed work and seek such Parties' assistance in locating their respective subsurface utility facilities. Agreement The Parties therefore agree as follows: Section 1. Definitions. 1.1 Specified Definitions. Whenever used in this Agreement with initial letters capitalized, the following terms shall have the following specified meanings, unless the context clearly requires a different meaning: 1.1.1. "Committee" means the committee described in Section 3. ( . , , ~ l , 1.1.2. "Common Costs" means those costs reasonably ( ncurred by the Parties or anyone or more of them in connection with the Service, but only if and to the extent that such costs are included in a budget or otherwise authorized or approved by the Committee as "Common Costs" under this Agreement. Common Costs may include, but are not necessarily limited to, the following: (a) payroll and related personnel costs to perform the Service (including: salaries; wages; costs or fringe benefits such as retirement benefits, employee insurance and allowances for sick leave, holidays and vacations; social security, unemployment and other employer taxes; and premiums for workers' compensation and employer's liability insurance); (b) costs of office space, facilities, equipment, materials, services and other items used; consumed or incorporated in the performance of the Service; (c) costs of consultants, contractors and suppliers furnishing goods, services and other items for performance of the Service (including, but not limited to, compensation payable to the Contractor); (d) attorneys', accountants', and other professional fees incurred in connection with performance of the Service (including, but not limited to, the costs of any audit of the Common Costs performed pursuant to paragraph 4.7); (e) sales, use, property and other taxes which are imposed by any governmental authority in connection with performance of the Service (other than any taxes imposed upon or measured by the income, revenues or receipts of any Party); ( f ) costs of permits, licenses and other governmental authorizations required to perform the Service; and (g) 'costs (inClUding, but not limited to, attorneys' fees) incurred to defend, compromise, settle and satisfy claims of third parties against the Parties or any one or more of them arising out of the performance of the Service, if and to the extent not covered by insurance or the indemnity in paragraph 8.5.3. -2- J.._ ...,~" ... -'~. _.~- , , , ~ , , , , 1.1.3 "Contractor" means the Person engaged from time to ( -- .ime by the Committee pursuant to paragraph 2.2(a) to perform the Service. The Contractor on the date of this Agreement is Asplundh Tree Expert Co. 1.1.4 "County" means any county or other political subdivision of a state included in the Service Area. The Counties on the date of this Agreement are set forth in the attached Exhibit B. 1.1.5 "Fiscal Period" means the fiscal period adopted from time to time by the Committee for budgeting, financial statement, accounting and other financial purposes with regard to the Service. On the date of this Agreement, the Fiscal Period is the twelve-month period commencing on August 1 of one year and ending on July 31 of the next year. 1.1.6 "One-Call Office" means an office from which the Service is performed. On the date of this Agreement, the One-Call Office is located at 12951 Bellevue-Redmond Road, Bellevue, Washington 98005. The Committee may at any time establish one or more additional One-Call offices or change the location of any One-Call Office. 1.1.7 "Person" means any corporation, partnership, trust, governmental authority, individual or any other person or entity. I 1.1.8 "Service Area" means the geographical area to which the SerVice applies. The Service Area is composed of the Counties. 1.1.9 "Sponsor" means a Party with facilities in a County who agrees to act and is approved by the Committee as a Sponsor. Each County must have at least one Sponsor. The Sponsors for each County on the date of this Agreement are set forth in the attached Exhibit B. 1.1.10 "Subscription Agreement" means the document, in such form and content as may be prescribed from time to time by the Committee, by which a Person becomes a "Party" under this Agreement. The form of Subscription Agreement prescribed by the Committee on the date of this Agreement is attached as Exhibit C. 1.1.11 "Term" means the period commencing with the date of this Agreemen~d ending upon the first of the following to occur: I \ -3- ~--" ,... ','", - - . , , " ( , , (a) July 31, 2004; I (b) the date upon which the last of the Parties withdraws as a Party pursuant to paragraph 5.4; or (c) the effective date of any termination of this Agreement by the Committee pursuant to paragraph 3.4 (d). 1.1.12 "Uncontrollable Forces" means any cause or condition beyond the control of any Party delaying or failing to perform its obligations under this Agreement, which cause or condition such Party is unable to overcome or have prevented by the exercise of reasonable diligence. Uncontrollable Forces may include, but are not necessarily limited to, acts of God, acts o{ the elements, fires, winds, floods, explosions, strikes, sabotage, insurrections, riots, acts of the public enemy, failures of equipment, inabilities to obtain or ship materials or equipment, acts of civil or military authority (including court orders, injunctions and orders of government authorities prohibiting performance as required by this Agreement or permitting such performance only subject to unreasonable conditions), and failures of governmental authorities to timely act (including any failures to issue permits, licenses or other required governmental authorizations). 1.2 Cross-References to Additional Definitions. Whenever used in this Agreement with initial letters capitalized, the following terms shall have their respective meanings specified elsewhere in this Agreement: Term Reference First Party Paragraph 8.5.3 Party Introduction participating Party Paragraph 7.2 Service Recital C Section 2. Performance of the Service. 2.1 General. The Parties shall provide for the Service in the Service Area throughout the Term. 2.2 Appointment of Committee as Agent. Each Party irrevocably appoints the Committee as its agent to: ( -4- I ,- (a) enter into, perform and administer one or more ( ,ontracts with the Contractor for the Contractor's performance of the Service; (b) incur Common Costs; and ( ( c) take such other action (including, but not limited to, the execution, acknowledgement and delivery of documents) as the Committee may deem necessary or appropriate to provide for the Service, perform its obligations under this Agreement and otherwise implement the Service and this Agreement. Any contract with the Contractor or other Person entered into ( by the Committee as agent for the Parties shall be executed by the Committee in the name of "One-Call Operating Committee" or a substantially similar name and shall be signed by at least seventy-five percent (75%) of the total number of Committee members. 2.3 Committee POlicies, etc. The Committee shall adopt, periodically review and revise as it deems appropriate such policies, procedures, guidelines, rules and requirements as the Committee may deem appropriate for the implementation of the Service and this Agreement. The Committee shall provide each party notice of, and each Party shall comply with, such policies, procedures, guidelines, rules and requirements. 2.4 Specific Requirements. Without limiting the generality of paragraph 2.3, each party shall: ( a) furnish, operate and maintain telephone, teleprinter, facsimile and other equipment required to interface such Party with the Service; (b) cooperate and coordinate with, and furnish information to, the Committee and the Contractor as required for the implementation of the Service and this Agreement; (c) promptly and courteously respond to any request, received by such Party through the Service, for location of such Party's subsurface utility facilities; and (d) pay before delinquency all charges and other amounts payable by it for use of the Service. 2.5 Equal Opportunity Compliance. Each Party shall comply with Executive Order No. 11246, the Rehabilitation Act ( -5- ~. -"._.. . -. ...- , . I of 1973 and the Vietnam Era Veterans' Readjustment Assistance / .ct of 1972 and all of the orders, rules and regulations I promulgated thereunder (including, but not limited to, 41 C.F.R. Section 60-1, 41 C.F.R. Section 60-250 and 41 C.F.R. Section 60-741), all as the same may have been or may be amended. The "equal opportunity clause" of 41 C.F.R. Section 60-1.4, the "Affirmative Action Obligations for Disabled Veterans and Veterans of the Vietnam Era" clause of 41 C.F.R. Section 60-250.4 and the "Affirmative Action for Handicapped Workers" clause of 41 C.F.R. Section 60-741.4 are incorporated herein by this reference. Each Party certifies that segregated facilities (within the meaning of 41 C.F.R. Section 60-1.8) are not and will not be maintained or provided for its employees and that it will not permit its employees to work at any location under its control where segregated facilities are maintained. Each Party Jhall obtain a similar certification from other parties as required by 41 C.F.R. Section 60-l~8. This paragraph shall apply only if an to the extent required by applicable law. Section 3. The Committee. 3.1 Composition. The Committee shall be composed of as many members as there are Sponsors. Each Sponsor shall designate one Committee member and one alternate. The alternate designated by a Sponsor may vote and otherwise act in the place of the Committee member designated by such Sponsor. A Sponsor may at any time replace the Committee member or alternate designated by it by giving written notice of the replacement to the other Committee members. The names, addresses and telephone numbers of the Committee members and alternates on the date of this Agreement are listed in the attached Exhibit D. 3.2 Committee Members. Any Committee member may call a meeting of the Committee by giving all other Committee members notice thereof at least three (3) business days in advance of the meeting. All meetings of the Committee shall be held at the One-Call office or at such other place as may be determined by the Committee. Presence at a meeting by the Committee member or alternate designed by a Sponsor shall constitute a waiver by that Committee member of notice of the meeting and any objection to the place of the meeting. A meeting of the Committee may be held by conference telephone or similar communications equipment by means of which all members partiCipating in the meeting can hear each other at the same time; participating by such means shall contstitute presence at such meeting. Minutes shall be kept of each Committee meeting \ and provided to all Committee members. , ( -6- ,~..- . -- ...-'"".., -... , \ , 3.3 Manner of Acting by the Committee. The Committee I ay act by consensus, by adoption pursuant to vote taken at a ! meeting of the Committee or by written instrument signed by all of the Committee members. 3.4 Voting of the Committee. On each matter put to a vote of the Committee, each Committee member shall be entitled to cast one ( 1 ) vote. Any matter put to a vote of the Committee shall be deemed adopted by the Committee upon receiving the affirmative vote of more than fifty percent (50\) of the total number of Committee members, except as otherwise specified in this Agreement and except that all of the following shall require the affirmative vote of at least seventy-five percent (75\) of the total number of Committee members for adoption: ( a) any change in the indentity of the Contractor; (b) any change in the Fiscal Period; (c) any change in the location of the One-Call Office; (d) termination of the Term; ( e ) any change in the charges for use of the Service pursuant to paragraph 4.1; ( f ) the authorization of approval of any costs as Common Costs (including, but not limited to, the approval of any budget of the estimated Common Costs to be incurred to provide the Service during any Fiscal Period); (9) the establishment of any bank account pursuant to paragraph 4.6; (h) the approval of any application to become a Sponsor of any County; (1) the approval of an application for expansion of the Service Area under paragraph 5.2; . ( j) any contract between the Contractor or any other Person and the Committee, as agent for the Parties; ( k ) the authorization of any Person, or the delegation of any authority (e.g., by appointment of an agent or otherwise), to enter into any contract on behalf of the Parties with regard to implementation of the Service or this Agreement; ( -7- . ....--. ...,..,. . ~ r'. _ ------, - .,-,.. , , " (1 ) the establishment of any sinking funds or eserves (other than reasonable reserves for working capital in . the ordinary course of perfomring the Service) for contingencies and other purposes in connection with performance of the Service; (m) the adoption or revision of an insurance program pursuant to paragraph 6.1; and (n) any amendment of this Agreement pursuant to paragraph 9.4. Section 4. Payment and Allocation of Common Costs 4.1 Establishment of Charges. The Committee shall establish charges for use of the Service. Such charges shall be fair, reasonable and nondiscriminatory. The Committee may establish different charges for different classes of users; provided that there is a reasonable basis for distinguishing different classes of users and for establishing different charges for different classes. The charges in effect on the date of this Agreement are set forth in the attached Exhibit .E. Such charges are presently assessed only against the Parties; however, the Committee may, in its discretion, assessed charges for use of the Service by others. The Committee may change the charges effective for the Service provided during any Fiscal Period; provided that, with regard to changes assess against the Parties, the Committee shall give the Parties written notice of the change at least ninety (90) days prior to the effective date of the change; and provided further that any material change in the formula or methodology for determining charges shall be subject to the approval of each Sponsor. 4.2 Charges Based on Common Costs. All revenues received from charges for use of the Service shall be applied toward payment of the Common Costs. At least ninety (90) days prior to the commencement of each Fiscal Period, the Committee shall approve a budget of the estimated Common Costs, to be incurred to provide the Service during such Fiscal Period. Attached as Exhibit F is the budget of estimated Common Costs to be incurred to provide the Service during the Fiscal Period which includes the date of this Agreement, as approved by the Committee. For each Fiscal Period commenCing after 1986 or such later date as may be specified by unanimous vote of the Committee, the Committee shall endeavor to establish charges designed to produce revenues sufficient to pay all of the Common Costs for such Fiscal Period. \, -8- . , , I , . 4.3 Payment of Excess Common Costs. All Common Costs ~nd revenues from charges for use of the Service shall be dllocated among the Counties in accordance with equitable procedures and principles established by the Committee. If, with respect to any period specified by the Committee, the Common Costs allocated to any County exceed the revenues allocated to that County, then the excess shall be borne by the Sponsors of such County. If the County has more than one Sponsor, the excess shall be allocated among the Sponsors as agreed by them or, if they have not agreed to such an allocation, then in proportion to the charges assessed against them for use of the Service during the period with respect to which the excess was incurred. 4.4 Payment. The Committee shall establish procedures for the determination, billing, payment and collection of charges for use of the Service, excess Common Costs payable by the Sponsors and other amounts payable under this Agreement. Delinquent payments shall be subject to such late charges and interest as may be established by the Committee from time to time; however, payment of such late charges and interest shall not excuse or cure any delinquent payment. 4.5 Soonsor's Right to Cure Default. If any Party shall default in the payment of any charges or other amounts due for the Service provided in any County, any Sponsor as to such County may demand that such default be cured. If the defaulting Party shall fail to cure the default within ten (10) days after receipt of such demand, the Sponsor may, on behalf of the defaulting Party, advance the amount remaining in default. Such advance shall be treated as a loan to the defaulting Party bearing interest at the prime rate quoted from time to time by Seattle-First National Bank plus two percent (2%) or at the maximum rate permitted by applicable usury law, whichever is less, computed daily, compounded quarterly. The loan shall be payable ten (10) days after demand for payment is received by the defaulting Party from the advancing Sponsor. The rights of the advancing Sponsor set forth in this paragraph are in addition to, and not in lieu of, any other rights or remedies afforded under this Agreement, by law or otherwise, on account of the default, the loan or the failure of the defaulting Party to repay the loan as provided for in this paragraph. 4.6 Bank Accounts. All revenues received on account of the Service shall be deposited in such bank account or accounts at such bank or banks as shall be selected from time to time by the Committee. All drafts, cheeks, bills and cash which may be deposited immediately in such account or accounts in the same F~~- in which they are received. ! -9- . . ~ f I rj /' 4.7 Books and,Records. The Committee shall provide for ( complete and accurate set of books and records of the Common Costs, permitting allocation of the Common Costs among the Counties in accordance with paragraph 4.3. Such books and records shall be kept in accordance with generally accepted I accounting practices applied in a consistent manner, correctly reflecting all transactions involving Common Costs. Unless otherwise directed by the Committee, such books and records shall be maintained on the cash basis. Such books and records shall be kept at the One-Call Office. Each Party shall have access to such books and records and the right to examine, copy and audit the same during normal business hours. The Committee shall cause such books and records to be audited not less frequently than annually by an independent certified public accountant selected by the Committee. The Committee s.lall provide each Party with certified financial statements for each Fiscal Period (inClUding, but not necessarily limited to, a balance sheet and a statement of results for the Fiscal Period) promptly after the end of such Fiscal Period. Section s. Changes in Parties in the Service Area. 5.1 Additional Parties. Any Person that owns or operates subsurface utility facilities (inClUding, but not necessarily limited to, any electric, gas, telephone, water, cable television or communications distribution system) within the SerVice Area shall become a Party upon execution of a Subscription Agreement and acceptance of such Subscription Agreement by the Committee. The Committee shall not unreasonably withhold or delay its acceptance of any SUbscription Agreement tendered for acceptance. Any Party that desires to become a Sponsor of any County shall apply to the Committee for approval. Such application shall be in such form and content, and supported by such documents and information, as may be prescribed from time to time by the Committee. Such Party shall become a Sponsor only upon the Committee's approval of the application and the Party's agreement to act as a Sponsor in accordance with any terms and conditions imposed by the Committee in its approval. 5.2 Expansion of the Service Area. Any Party may apply to the Committee for the expansion of the SerVice Area by the addition of a proposed County in which such Party owns or operates subsurface utility facilities. Such application shall be in such form and content, and supported by such documents and information, as may be prescribed from time to time by the Committee. Without limiting the generality of the foregoing, the application shall include such Party's agreement to act as ( " -10- , , . , . ' ' , . Sponsor for the prqposed County. The Committee may reject ( ny application for expansion of the Service Area, with or ., without a statement of the reasons or basis for the rejection. The Committee may approve the application, with or without conditions (e.g., as to the Sponsor's obligation to pay any start-up costs incurred to establish the Service in the proposed County). The proposed County shall become a County and part of the Service Area only upon the Committee's approval of the application and the Sponsor's agreement to any conditions imposed by the Committee in its approval. 5.3 Termination of Participation As to Any County. Any Party may terminate its participation in the Service for any County: (a) effective as of the end of any Fiscal Period by giving the Committee members written notice of such termination at least sixty (60) days prior to the commencement of such Fiscal Period; or (b) effective as of the effective date of any increase in the charges payable by such Party for use of the Service in such County made by the Committee pursuant to paragraph 4.1, provided that such Party gives the Committee members written notice of such termination at least sixty (60) days prior to the effective date of such increase. rf such Party is a Sponsor as to the County with respect to which the termination applies, such Party shall give each other Party who participates in the Service for such County written notice of such Party's intention to terminate its participation at least one hundred eighty (180 ) days prior to giving the Committee members notice of such termination. If after such termination there remains no Sponsor as to the County, the County shall be deleted from the Service Area effective as of the effective date of such termination. No termination pursuant to this paragraph shall relieve or release any Party from any of its obligations with respect to charges accrued, Common Costs incurred or any other liability accrued or incurred prior to the effective date of such termination. 5.4 Withdrawal As a Party. Any Party may withdraw as a Party: (a) effective as of the end of any Fiscal PeriOd by giving the Committee members written notice of such withdrawal prior to the commencement of such Fiscal Period; ( -11- , I . , \ \ . (b) effective as of the effective date of any i, ncrease in the charges payable by such Party for use of the '~ervice made by the Committee pursuant to paragraph 4.1, provided that such Party gives the Committee members written notice of such withdrawal at least thirty (30) days prior to i the effective date of such increase; or ( c ) effective as of the effective date of any amendment of this Agreement made by the Committee pursuant to paragraph 9.4, provided that such Party gives the Committee members written notice of such withdrawal at least thirty (30) 'days prior to the effective date of such amendment. If such Party is a Sponsor as to any County, such Party shall give each other Party who participates in the services for such County written notice of such Party's intention to withdraw as a Party at least forty-five (45) days prior to giving the Committee members notice of such withdrawal. If after such withdrawal there remains no Sponsor for such County, such County shall be deleted from the Service Area effective as of the date of such withdrawal. No withdrawal pursuant to this paragraph shall relieve or release any Party from any of its obligations with respect to charges accrued, Common Costs incurred or any other liability accrued or incurred prior to the effective date of such withdrawal. Section 6. Insurance. 6.1 Insurance Program. The Committee shall adopt, periodically review and revise as it deems appropriate an insurance program for the protection of the Contractor and each Party from claims, losses, harm, liabilities, damages, costs and expenses arising out of personal injury (including death) or property damage that may occur in connection with the Service. The insurance program shall include: ( a) insurance to be maintained by the Contractor; and I I (b) " insurance to maintained by each Party. \ 6.2 Policy Provision. All insurance required to be maintained pursuant to the insurance program shall be placed with such insurers, under such forms of policies and with such coverages, limits, exclusions, deductibles, waivers of subrogation and other pOlicy provisions as may be specified by the Committee. Each of the Contractor's policies of insurance ( shall name each Party as an additional insured, with losses " I \ -12- _ .. ..._.n.__.. ..__-' .. ~U._.' __ ___ _ _ __._ ____ '.' .' , : ~ \: '} I' 1 I , 1ayable to each insured and additional insured for its own ( oenefit as its interests ~ay appear. 6.3 Evidence of Insurance. The Contractor and each Party shall deliver to the Committee such certificates of insurance and other evidence of the insurance required to be maintained pursuant to the insurance program (such as copies of the applicable insurance policies) as the Committee may request from time to time. Section 7. Committee Determinations and Other Orders. 7.1 General. The Committee shall have the power and authority to issue interpretations, constructions, clarifications, determinations, instructions, directions and other orders pertaining to the implementation of this Agreement. Such power and authority may be exercised at the request of any Party or upon the Committee's own initiation. 7.2 Resolution of Controversies. Without limiting the generality of paragraph 7.1, any controversy among the Parties or anyone or more of them relating to the interpretation, construction, clarification or implementation of this Agreement shall, upon demand of any Party involved in the controversy, be submitted to the Committee for determination. The Committee shall promptly send notice of the demand to each Party involved in the controversy (a "Participating Party"). Within twenty-one (21) days after receipt of such notice or such longer period as may be permitted by the Committee, each Participating Party shall set forth in writing a statement of its position on the controversy and submit such statement to the Committee and to each of the other Participating parties. Within seven (7) days after receipt of a Participating Party's statement of position, any other participating Party may submit to the Committee and each other Participating Party a written response to that statement. The Committee may, at the request of any Participating Party or on the Committee's own initiative, provide an opportunity for oral presentation of the Participating Parties' respective positions. The Participating Parties shall provide the Committee with such information pertaining to the controversy as any Committee member may reasonably request. The Committee shall issue to each of the Participating parties a written determination of the controversy, setting forth the reasons and basis for the determination. 7.3 Protest of Committee Orders. Any interpretation, construction, clarification, determination, instruction, ( -13- "~.'" --"~ uu" _. .....'_n.._ .,.." , .... . " I \ ~ ~ . . , , . , 1irection or other order issued by the Committee under this I 3ect ion 7 shall be fi nal :and bi nding upon each Par ty, unless \ within twenty-one (21) days after such Party receives written notice of the order such Party delivers to the Committee a written protest to the order, setting forth in a detailed and clear manner the reasons and basis for the protest. The Committee shall issue a written response to each such protest. Notwithstanding any protest, each Party shall proceed with performance under this Agreement in accordance with the orders of the Committee. Section 8. Relationship of the Parties. 8.1 No Partnership. This Agreement shall not be interpreted or construed to create or evidence any partnership among the Parties or anyone or more of them or to impose any partnership obligation or liability upon any Party. Except as specifically provided in paragraph 2.2, this Agreement does not authorize any Party to: act as an agent or other representative of any other Party, enter into any contract in the name or on behalf of any other Party, or incur any obligation or liability of any other Party. 8.2 The Contractor. The Contractor shall be and act as an independent contractor in the performance of the Service, not an agent or other representative of any Party. 8.3 No Third Party Beneficiaries. There are no third-party beneficiaries under this Agreement (other than the Committee members and alternates) or of the Service. This Agreement shall not be interpreted or construed to confer any right or remedy upon any Person (other than the Parties and the committee members and alternates) or to relieve or release any Person (including, but not limited to, the Contractor) from any obligation or liability to any Party. Without limiting the generality of the foregOing, the Service is for the sole benefit of the Parties and not for the benefit of any other Person. 8.4 No Dedication of Facilities. This Agreement shall not be interpreted or construed to constitute or evidence any dedication of facilities owned or operated by any Party (or any portion thereof) to the public or to any other Party. 8.5 Several Obligations. The Obligations and liabilities of each Party under this Agreement are several, not joint. No Party shall, by virtue of this Agreement, be responsible for the obligations, liabilities, acts or omissions of any other Party. Without limiting the generality of the foregoing: ( -14- , .. 111' If. " r' ! , J , 8.5.1 No Party shall be responsible for the charges and f Jther amounts payable with respect to the Service provided to any other Party (except to the extent that the failure to pay such amounts is taken into account in an increase in the charges established by the Committee under paragraph 4.1 or the excess Common Costs to be borne by a Sponsor under paragraph 4.3). 8.5.2 Each Party shall be solely responsible for its response to any request, received by such Party through the Service, for location of such Party's subsurface utility facilities. 8.5.3 To the fullest extent permitted by applicable law, each Party ("First Party") shall defend, indemnify and hold harmless each other Party and each Committee member and alternate from any and all claims, losses, harm, liabilities, damages, costs and expenses (including, but not limited to, reasonable attorneys' fees) arising out of any actual or alleged negligence, act or, in the case of an actual or alleged duty to act, failure to act by the First Party in connection with the Service (including, but not limited to, the First Party's response or failure to respond to a request, received by the First Party through the Service, for the location of the First Party's subsurface utility facilities). However, the foregoing shall not require the First Party to defend, indemnify or hold harmless any Person from any claim, loss, harm, liability, damage, cost or expense to the extent caused by any actual negligence, act or, in the case of a duty to act, failure to act by such Person. Without limiting the generality of the foregoing, the obligations of the First Party under this paragraph shall apply to claims of an employee or former employee of the First Party and, in connection with any action to enforce the provisions of this paragraph, the First Party expressly waives any defense, immunity or limitation (~, on the type or amount of damages, compensation, benefits or liability payable by the First Party) that might otherwise be afforded under any industrial insurance, workers' compensation, disability benefit or similar statute, regulation, rule or order of any governmental authority having jurisdiction (including, but not limited to, the Washington Industrial Insurance Act, Title 51 of the Revised Code of Washington). 8.6 Tax Exempt Status. The Parties intend that any organization created or evidenced by this Agreement shall constitute an organization exempt from federal income taxes pursuant to Section 501 of the Internal Revenue Code of 1954, as amended, or any other statute, regulation, rule or order of similar import. The Committee is authorized to take any and all action (including, but not limited to, the preparation, ( -15- .. -. .. ~""-~ . . "';;,It ~ .' * , ~ , ~iling and prosecution of. an application of recognition of ( ~xemption under Section 501 of the Internal Revenue Code of 1954, as amended, or any other statute, regulation, rule or order of similar import) which it deems appropriate or advisable to carry out or implement such intent. Section 9. Miscellaneous 9.1 Excused Performance. No Party shall be considered to be in default in the performance of any of its obligations under this Agreement (other than any obligations to pay money on account of any delay or failure to perform caused by Uncontrollable Forces. Any Party delaying or failing to perform any of its obligations under this Agreement on account of any Dncontrollable Forces shall use its best efforts to promptly cure such delay or failure. If any delay or failure to perform caused by Uncontrollable Forces affects any requirement of this Agreement, such requirement shall be equitably adjusted to reflect such delay or failure. 9.2 Communications. Any notice, request, designation, direction, statement or other communication under this Agreement shall be in writing and shall be delivered in person or mailed, properly addressed and stamped with the required postage, to such address as the intended recipient shall specify in its Subscription Agreement. Any Party may change its address for communications under this paragraph by giving the Committee members notice of such change in accordance with this paragraph. 9.3 Entire Agreement. This Agreement sets forth the entire agreement among the Parties and supersedes any and all prior agreements with regard to the Service. 9.4 Amendment. This Agreement may be amended from time to time, in whole or in part, by the Committee; provided, however, that no amendment shall be binding upon any Party prior to the expiration of ninety (90) days after such Party's receipt of notice of the amendment. \ 9.5 Implementation. Each Party shall take such reasonable action (inClUding, but not limited to, the execution, acknowledgement and delivery of documents) as may be requested by the Committee for the implementation or continUing performance of this Agreement. ( , ( -16- .. ,J .. 1,' ... " . , . . . . ". 9.6 Nonwaiver. The failure of any Party to insist upon ( Jr enforce strict performance of any provision of this Agreement or to exercise any right of remedy under this Agreement shall not be construed as a waiver or relinquishment to any extent of its right to assert or rely upon any such provision, right or remedy in that or any other instance; rather, the same shall be and remain in full force and effect. 9.7 Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 9.8 Headings. The headings of sections, subsections and paragraphs of this Agreement are for convenience of reference only and are not intended to restrict, affect or be of any weight in the interpretation or construction of the provisions of such sections, subsections or paragraphs. 9.9 Governing Law. This Agreement shall be interpreted, construed and enforced in all respects with the laws of the State of Washington. 9.10 Forum Selection. No Party shall commence or prosecute any claim, proceeding, suit or legal action to enforce this Agreement, to recover damages for breach of or default under this Agreement, or otherwise arising under or by virtue of this Agreement, other than in the courts of the State of Washington or the District Court of the United States, Western District, State of Washington. Each Party hereby irrevocably consents to the jurisdiction of the courts of the State of Washington with venue laid in King County and of the District Court of the United States, Western Division, State of Washington. 9.11 Successors and Assigns. This Agreement shall be fully binding upon, inure to the benefit of and be enforceable by each Party and its successors and assigns. No assignment of any right or interest in this Agreement (whether by contract, ooeration of law or otherwise) shall release or relieve any Party of any of !ts obligations or liabilities under this Agreement. 9.12 Disposition of Assets at the End of the Term. Any and all funds or other assets in the control of the Committee at the end of the Term shall be applied: ( -17- .~.. ,,~.. - . . - ,. .. '... .. . ' ,.;. , I . . , '" . (a) first, to the payment of Common Costs; .J \ (b) second, to the establishment of such reserves, the purchase of such insurance and the making of such other provisions as the Committee may specify for the protection against obligations, liabilities or contingencies that may arise under or by virtue of this Agreement; and (c) finally, as the Committee may direct, provided that the Committee shall not direct any such application that may jeopardize the tax exempt status of the organization of the Parties under this Agreement pursuant to Section 501 of the Internal Revenue Code of 1954, as amended, or any other statue, regulation, rule or order of similar import. ( ( -18-