HomeMy WebLinkAbout000527 Original Contract1. DURATION OF AGREEMENT
1.1
2. RESPONSIBILITY
TRANSFORMER 999010
TEMPORARY USE AGREEMENT
Agreement Number 120403
Transformer 999010 Agreement Number 120403 Page 1
City of Port Angeles
Record 000527
This Agreement, made and entered into this b day of Mi44,10n7 2012, by and
between Public Utility District No. 1 of ClaIlam County, a municipal corporation (hereinafter
called the "District and City of Port Angeles, a Washington noncharter code city (hereinafter
called the "City is for the temporary use of a 10 MVA, 67 KV -13.2 KV transformer.
WHEREAS, the City owns electric distribution facilities served from their 2nd and
Washington Substation, and the transformer serving the facilities is out -of- service due to storm
damage; and
WHEREAS, the District owns a 10 MVA, 67 KV 13.2 KV transformer (hereinafter called
the "Transformer") suitable for use at voltages utilized by the City; and
WHEREAS, the District has the resources in place to respond to the City's need for a
backup transformer.
NOW THEREFORE, it is agreed by and between the District and the City as follows:
This Agreement shall become effective upon signature by all parties and shall continue
in effect for a period of ten (10) months, unless it is terminated earlier pursuant to
Section 5 of this Agreement.
2.1 The City shall be responsible for all costs associated with, and shall bear the risk of Toss
of or damage to the Transformer during the City's mobilization and demobilization,
transportation to and from the City, installation, and operation of the Transformer except
to the extent any such loss or damage results from the District's sole negligence.
2.2 The District shall be responsible for providing engineering, technical, and manpower
support as required and requested by the City for the duration of this Agreement, except
that the City shall reimburse the District for time and materials expended by the District
in support of the City's use of the Transformer. The District's costs shall be determined
by actual cost plus overhead for material and the prevailing utility rate at the time of work
for labor, equipment, vehicles and engineering.
3. USE OF TRANSFORMER
3.1 The City shall install, operate and maintain the Transformer in keeping with good utility
practices. Installation and protection of the Transformer shall be approved by the
District. "Good utility practices" as used herein shall be defined as any of the practices,
methods, and acts engaged in, or approved by, a significant portion of the electric utility
industry during the term of this Agreement; or, if there are no such practices, methods,
and acts with respect to specific condition or circumstance, any of the practices,
methods and acts that, in the exercise of reasonable judgment in light of the facts known
at the time the decision was made, could have been expected to accomplish the desired
result at a reasonable cost and consistent with good business practices, reliability, safety
and expedition. Good utility practice is not intended to be limited to the optimum
practice, method, or act, to the exclusion of all others, but rather to be acceptable
practices, methods, or acts generally accepted in the industry.
3.2 The City shall be responsible for all connections to the Transformer, including high
voltage and low voltage terminations, and all protection, control and indication wiring,
except that the District shall install and remove the high voltage bushings before and
after use.
3.3 The City shall notify the District Dispatcher when the City's distribution load is connected
and disconnected to and from the Transformer. When the Transformer is connected to
the City's distribution load, the City shall provide the District with estimated load factor
and peak load information on a daily or weekly interval, as requested by the District.
4. PAYMENT
4.1 Payment of any costs incurred by the District pursuant to this Agreement is due within 30
days of the City's receipt of the District's invoice. Overdue payments will be subject to a
penalty of one percent (1 per month of any unpaid amount.
5. TERMINATION
5.1 Either party may terminate this Agreement by providing the other party written notice of
termination 30 days prior to the effective date of termination. All liabilities incurred
during the term of this Agreement are preserved until satisfied.
5.2 Any violation of any condition of this Agreement shall immediately terminate this
Agreement. All liabilities incurred during the term of this Agreement are preserved until
satisfied.
6. LIABILITY AND MAINTENANCE
6.1 The District and the City shall exercise reasonable diligence consistent with good
utility practices in the operation and maintenance of the Transformer. The City's use of
the Transformer shall be subject to the right of the District to remove the Transformer
from service for repairs, replacement, and maintenance, or in the event the District's own
electric distribution requirements cannot be satisfied without the District's use of the
Transformer. PROVIDED, the District shall not remove the Transformer from service
without first notifying the City, and provided further that, insofar as practicable, the
District shall schedule any removal from service in such a manner as not to interfere with
Transformer 999010 Agreement Number 120403 Page 2
the City's use of the Transformer.
6.2 The City hereby grants the District access to the Transformer as may be necessary for
the District to perform any inspections and maintenance obligations pursuant to this
Agreement.
7. INSURANCE
7.1 The City, at its own expense, shall include the Transformer as an insured item under the
City's insurance policies for the duration of this Agreement. The City's insurance policies
shall provide a minimum of $225,000 coverage for the Transformer.
7.2 To the extent allowed by Washington State Law, the City's policy or policies of insurance
providing coverage required under Section 7.1 above shall name the District as
additional insured with a cross liability clause and provide that no cancellation or
material changes in the policies shall become effective unless thirty (30) days prior
notice of such cancellation or change shall be furnished to the District by registered mail.
8. THIRD -PARTY CLAIMS
8.1 Each party agrees to indemnify, defend, and hold harmless the other party from and
against third -party claims for damages for personal injury or loss, including death, and
property damage connected with the services performed by each party and arising out of
the negligence of its employees, officers, and agents. This duty to indemnify, defend,
and hold harmless shall not apply to liability for damages arising out of bodily injury to
persons or damage to property caused by or resulting from the sole negligence of the
indemnitee or its agents or employees. Each party's duty to indemnify, defend, and hold
harmless the other for liability for damages arising out of bodily injury to persons or
damage to property caused by or resulting from the concurrent negligence of both
parties or their agents or employees shall apply only to the extent of negligence of the
indemnitor or its agents or employees.
Each party specifically and expressly waives any immunity that may be granted it under
the Washington State Industrial Insurance Act, Title 51 RCW. Further, the
indemnification obligation under this Agreement shall not be limited in any way by any
limitation on benefits payable to or for any third party under the workers' compensation
acts.
The duty to defend, indemnify and hold harmless shall include personnel related costs,
reasonable attorney fees, court costs and all other claim related expenses.
The District and the City hereby certify that the terms and conditions of the foregoing
indemnity provision are the subject of mutual negotiation by the parties and are
specifically and expressly agreed to in consideration of the mutual benefits derived
under the terms of this Agreement.
This provision survives the termination of this Agreement.
9. ARBITRATION
Transformer 999010 Agreement Number 120403 Page 3
9.1 Any dispute that arises out of the interpretation, performance, enforcement, or any other
aspect of this Agreement shall be resolved by submitting the same to binding arbitration,
which shall proceed according to the Washington arbitration act, Chapter 7.04A RCW,
and shall be conducted within Clallam County, Washington; provided, however, that
each party shall select a nominating person within ten (10) days of notice of the dispute
from any party to the others. The District shall elect one nominating person, and the City
shall elect one nominating person. The two nominating persons shall then meet and
promptly select the arbitrator. If, within thirty (30) days of the notice of the dispute, the
nominating persons do not select a person who agrees to serve as arbitrator, the
arbitrator shall be selected by a Superior Court Judge of Clallam County. The parties
shall require a written decision by the arbitrator as a condition of the selection of the
arbitrator. The prevailing party as determined by the arbitrator shall be entitled to its
reasonable attorney fees and costs associated with the arbitration. The parties shall
share equally the cost of the arbitration proceeding. Venue for any action brought on the
arbitration award, including enforcement of such award, shall be in the Superior Court of
Clallam County, and such action shall be governed by application of the laws of the state
of Washington. The prevailing party in any such action on the arbitration award shall be
entitled to its reasonable attorney fees and costs associated with such action.
ATTEST: Title:
Dated:
CITY OF PORT ANGELES, WASHINGTON
By:
PUBLIC UTILITY DISTRICT NO. 1
OF CLALLAM COUI(TY, WASHINGTON
Transformer 999010 Agreement Number 120403 Page 4
By: J
Title: 67S/COaD
064(4
D ated