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HomeMy WebLinkAbout19-190-FBR-001 Interlocal Agreement COA#19-190-FBR-001 SKAGIT COUNTY Contract # C20190615 Page 1 of 13 INTERLOCAL COOPERATIVE AGREEMENT BETWEEN SKAGIT COUNTY AND CITY OF ANACORTES FOR FIBER OPTICS THIS INTERLOCAL AGREEMENT is entered into this 'Ji day of Deow beAc , 2019 between Skagit County, Washington (the "County") and City of Anacortes, a Washington Municipal Corporation (the "Recipient") pursuant to the authority granted by Chapter 39.34 RCW, INTERLOCAL COOPERATION ACT, and in consideration of the mutual benefits do hereby agree as follows: 1. Purpose: The purpose of the contract is to distribute economic development funds pursuant to RCW 82.14.370. 2. Scope of Work: Recipient will use the funds distributed under this agreement pursuant to the intent and purpose of RCW 82.14.370. Further, Recipient is to use such funds only for the Public Facility Project described in Recipient's Economic Development Application submitted to the County which is attached to this document as Exhibit"A". 3. Payment: County will compensate Recipient a maximum of$295,833, chargeable to GL expenditure code#342 58502014109. Recipient shall submit an invoice describing the use of funds to be distributed by the County and the County upon receipt of appropriate documentation shall distribute a portion of the awarded funding as determined by the County Contract Representative described in Paragraph 6.1 of this Contract. However, such payments shall not occur more often than monthly, through the County voucher system. The County Contract Representative has the sole discretion of determining what appropriate documentation is required in order for Recipient to receive a distribution of funds under this Agreement. 4. Recipient agrees that in the event the county or other state or federal agency finds that the funds distributed pursuant to this agreement violate any state or federal laws including but not limited to the primary purpose for which funds pursuant to this agreement are being given, Recipient agrees to return the funds provided by County under this agreement to County including any penalties and interest, and agrees to hold County harmless and indemnify County for distributing such funds contrary to state or federal law. Further, in the event that funds provided to Recipient under this agreement are used for a purpose other then what was originally described in its application of funds, then Recipient agrees to return such funds to the County upon demand. 5. The parties agree that Recipient is an independent contractor and not an employee, or agent of Skagit County. Recipient hereby agrees not to make any representations to any third party or to allow such third party to remain under the misimpression that Recipient is an employee, independent contractor, or agent of Skagit County. All payments made hereunder and all services performed shall be made and performed pursuant to this Agreement. Recipient will defend, indemnify and hold harmless the County, its officers, Page 1 agents or employees from any loss or expense, including but not limited to settlements, judgments, setoffs, attorneys' fees or costs incurred by reason of claims or demands because of breach of the provisions of this paragraph. Further the Recipient represents that all employees and sub-contractors are covered under Industrial Insurance in compliance with R.C.W. Title 51. 6. Administration: The following individuals are designated as representatives of the respective parties. The representatives shall be responsible for administration of this Agreement and for coordinating and monitoring performance under this Agreement. In the event such representatives are changed, the party making the change shall notify the other party in writing. 6.1 The County's representative shall be the Budget and Finance Director: Trisha Logue 1800 Continental Place, Suite 100 Mount Vernon, WA 98273 6.2 Recipient's representative shall be Finance Director: Steve Hoglund P.O. Box 547 904 6th Street Anacortes, WA 98221 All notices and payments mailed by regular post (including first class) shall be deemed to have been given on the second business day following the date of mailing, if properly mailed and addressed. Notices and payments sent by certified or registered mail shall be deemed to have been given on the day next following the date of mailing, if properly mailed and addressed. For all types of mail, the postmark affixed by the United States Postal Service shall be conclusive evidence of the date of mailing. 7. Defense & Indemnity Agreement: The Recipient agrees to defend, indemnify and save harmless the County, its appointed and elective officers and employees, from and against all loss or expense, including but not limited to judgments, settlements, attorney's fees and costs by reason of any and all claims and demands upon the County, its elected or appointed officials or employees for damages because of personal or bodily injury, including death at any time resulting therefrom, sustained by any person or persons and on account of damage to property including loss of use thereof, whether such injury to persons or damage to property is due to the negligence of the Recipient, its subcontractors, its elected officers, employees or their agents, except only such injury or damage as shall have been occasioned by the sole negligence of the County, its appointed or elected officials or employees. It is further provided that no liability shall attach to the County by reason of entering into this contract, except as expressly provided herein. Recipient insurance shall be primary. Any insurance or self-insurance maintained by the County, its officers, officials, employees or volunteers shall be excess of Recipient's insurance and shall not contribute to it. Page 2 8. This Agreement shall become effective on July 18, 2016, per Resolution No. R20160202. Work on the project shall be substantially complete and contract shall expire December 31, 2019. For the purposes of this paragraph, the term "substantially complete" shall mean "when the contract work has progressed to the extent that the Recipient has full use and benefit of the facilities, both from the operational and safety standpoint, and only minor incidental work, replacement of temporary substitute facilities, or correction or repair remains to physically complete the total contract." Upon termination of this Agreement, all property acquired by the Recipient shall remain the Recipient's property, with no obligation to pay the County therefore. 9. The Recipient shall not assign any interest in this Contract and shall not transfer any interest in same without prior written County consent. 10. The Recipient will secure, at his own expense, all personnel required in performing said services under this Contract. Recipient shall be personally liable for applicable payroll, Labor and Industries premiums, and all taxes, and shall hold the County harmless from any claims related thereto. 11. Right to Review: This contract is subject to review by the State Auditor's office. The County or its designee shall have the right to review and monitor the financial components of this project. Such review may include, but is not limited to, on-site inspection by County agents or employees, and inspection of all records of other materials, which the County deems pertinent to the Agreement and its performance. Recipient shall preserve and maintain all financial records and records relating to this project under this Agreement for 3 years after contract termination, and shall make them available for such review,within Skagit County, State of Washington, upon request. 12. Acknowledgement of Funding: All books, informational pamphlets, press releases, research reports, articles, requests for information, signs or other public notices developed for or referring to the activities or programs funded by this agreement shall include the statement, "This project received funding from Skagit County," or similar language acknowledging Skagit County's funding contribution. Further, Recipient shall notify the County (or Administrative Services) no later than two weeks before a dedication ceremony or public event for any activities or programs funded by this agreement. Recipient shall also make efforts to verbally acknowledge the County's contributions to the Recipient at all dedication ceremonies or other public events relating to any programs or projects funded by this agreement. 13. Prevailing Wages: If Prevailing Wages are applicable to the work provided under the Agreement then Recipient shall submit a "Statement of Intent to Pay Prevailing Wages" prior to submitting first application for payment. Each statement of intent to pay prevailing wages must be approved by the Industrial Statistician of the Department of Labor and Industries before it is submitted to the County. Unless otherwise authorized by the Department of Labor and Industries, each voucher claim submitted by a Recipient for payment on a project estimate shall state that the prevailing wages have been paid in accordance with the pre- Page 3 filed statement or statements of Intent to Pay Prevailing Wages on file with the public agency. 14. Nondiscrimination: During the performance of this contract, the Recipient shall comply with all federal and state nondiscrimination statutes and regulations. These requirements include, but are not limited to: a. Nondiscrimination in Employment: The Recipient shall not discriminate against any employee or applicant for employment because of race, color, sex, religion, national origin, creed, marital status, age, Vietnam era or disabled veterans status, or the presence of any sensory, mental, or physical handicap. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment selection for training, including apprenticeships and volunteers. This requirement does not apply, however, to a religious corporation, association, educational institution or society with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational institution or society of its activities. 15. Compliance with Applicable Law: The Recipient and all subcontractors of Recipient shall comply with, and the Department is not responsible for determining compliance with, any and all applicable federal, state, and local laws, regulations, and/or policies. This obligation includes, but is not limited to, nondiscrimination laws and/or policies; the Americans with Disabilities Act (ADA); Ethics in Public Service (RCW 42.52); Covenant Against Contingent Fees (48 C.F.R. Sec. 52.203-5); safety and health regulations. In the event of the Recipient's or a subcontractor's noncompliance or refusal to comply with any law or policy, the Department may rescind, cancel, or terminate the contract in whole or in part. The Recipient is responsible for any and all costs or liability arising from the Recipient's failure to so comply with applicable law. 16. Venue and Choice of Law: In the event that any litigation should arise concerning the construction or interpretation of any of the terms of this Agreement, the venue of such action of litigation shall be in the Superior Court of the State of Washington in and for the County of Skagit. This Agreement shall be governed by the laws of the State of Washington. 17. No Separate Legal Entity: It is understood and agreed that this Agreement is solely for the benefit of the parties hereto and gives no right to any other party. No joint venture or partnership is formed as a result of the Agreement. 18. Termination of Contract for Cause a. If, through any cause, the Recipient shall fail to fulfill in a timely and proper manner its obligations under this contract or if the Recipient shall violate any of its covenants, agreements, or stipulations of this contract, the County shall thereupon have the right to terminate this contract and withhold the remaining allocation if such default or violation is not corrected within thirty (30) days after submitting written notice to the Recipient describing such default or violation. Further, in the event Recipient fails to Page 4 expend funds under this contract in accordance with State or Federal laws and/or the provisions of the agreement, the County reserves to right to recapture funds expended to Recipient in an amount equal to the extent of the noncompliance. b. The County may unilaterally terminate all or part of this contract, or may reduce its scope of work and budget, if there is a reduction in funds by the source of those funds, and if such funds are the basis for this contract. 19. Termination for Public Convenience: The County may terminate the contract in whole or in part whenever the County determines, in its sole discretion, that such termination is in the best interests of the County. Whenever the contract is terminated in accordance with this paragraph, the Recipient shall be entitled to payment for actual work performed at unit contract prices for completed items of work. An equitable adjustment in the contract price for partially completed items of work will be made, but such adjustment shall not include provision for loss of anticipated profit on deleted or uncompleted work. Termination of this contract by the County at any time during the term, whether for default or convenience, shall not constitute a breach of contract by the County. If sufficient funds are not appropriated or allocated for payment under this contract for any future fiscal period, the County will not be obligated to make payments for services or amounts incurred after the end of the current fiscal period. No penalty or expense shall accrue to the County in the event this provision applies. 20. Nonassignability: Neither this contract, nor any claim arising under this contract, shall be transferred or assigned by the Recipient. 21. Taxes: All payments accrued on account of payroll taxes, unemployment contributions, any other taxes, insurance or other expenses for the Recipient or its staff shall be the sole responsibility of the Recipient. Page 5 APPROVED: City of An ortes nature /O, ; / 7 Date Laurie Gere Print Name Mayor Title Attest: //7/4/4....2 Mailing Address: 904 6th Street PO Box 547 Anacortes, WA 98221 Telephone No. 360-293-1900 Fed. Tax ID# Contractor Lic. #. Page 6 DATED this 30 day of OCC-C.(t'V , 2019. BOARD OF COUNTY COMMISSIONERS SKAGIT COUNTY,WASHINGTON A S N I Lisa Janicki, Chair Pe,y\ )1/17e4-ev Ron Wesen, Commissi er xiAl a Attest: Kenneth A. Dahlstedt, Commissioner 401144tV Clerk of the Board For contracts under$5,000: Authorization per Resolution R20030146 Reco mend-d: County Administrator Department Head 4. Approved as to form: c..A) . r1A °N V1,3160 Civil Deputy Prosecuting Attorney Approved as to indemnification: l� 2-7•Pv-1`). Risk Manager Approved as to budget: Budget& Finance Dire r Page 7 Exhibit A 4RECEIVED1 \ o I MAR 1 8 2016 Economic Development Public Facility Project Application Board of County Commissioners . 1800 Continental Place. Mount Vernon WA 98273 voice 360-416-1300•fax 360-336-9307 www.skagitcounty.net \\-4449,ASiO‘W Part 1 Applicant Information Organization City of Anacortes Address PO Box 547,904 6th Street,Anacortes State WA Zip 98221 Primary Contact Fred Buckenmeyer Phone 360.293.1919 E-mail Address fredb@dtyofanacortes.org Part 2 Project Information RCW 82.14.370(3) defines"public facilities" as bridges, roads, domestic and industrial water facilities,sanitary sewer facilities, earth stabilization,storm sewer facilities, railroad, electricity,natural gas, buildings,structures,telecommunications infrastructure, transportation infrastructure, commercial infrastructure,and port facilities in the state of Washington. Project Name City of Anacortes Fiber Optic Network Location City of Anacortes Project Type Telecommunication Infrastructure Network Start Date 12/1/2016 Description • The City of Anacortes has organized a collaborative discussion with both the City of Mount Vernon,the Port of Skagit and Skagit County. We are collectively proposing a multiagency fiber optic network extension that will extend the current City of Mount Vernon fiber system into the City of Anacortes,this extension will also allow the system to connect the Port of Skagit facilities within the Town of La Conner.* The current Skagit County public fiber network connects Mount Vernon, Burlington,Sedro Woolley, Port of Skagit and others.The City of Anacortes is the largest city in Skagit County that is not connected to public fiber. Utilizing and extending the current public fiber system will allow Anacortes to connect our core infrastructure and facilities with low cost high capacity fiber optics. • This proposed extension of the existing City of Mount Vernon fiber network system will allow the City of Anacortes to develop a municipal fiber optic broadband network with the same business model that Mount Vernon currently uses. • Our business model [essentially the same as the City of Mount Vernon model] is centered on connecting government and public buildings, including schools, Health Care facilities, Port of Anacortes, our police department, and our fire stations.There are several facilities owned by Skagit County that will benefit from the connection to public fiber,the senior center, and Guemes ferry terminal. Future extensions could connect our core businesses.• The City of Anacortes is experiencing the same dilemma that many other cities are experiencing.We have a limited number of private network providers and they are not willing to extend their system without passing on large infrastructure costs to the consumers.• The proposed fiber route [see map] extends westerly from the City of Anacortes water treatment plant, following our existing utility route along the highway corridor through a combination of underground and aerial construction.The westerly terminus is Anacortes City Hall,from there future extensions would connect government and public buildings, including schools, Health Care facilities, Port of Anacortes,our police department,and our fire stations. • The proposed multi-agency extension connects to the Mount Vernon system near Avon and Donnelly roads.The proposed multi-agency extension connects to the current Port of Skagit system near Best road. • In addition to providing a backbone for the Anacortes fiber network this extension would provide a county wide redundant loop proving redundancy for the western portion of the county.Currently a majority of the Port of Skagit network exists without the benefit of a redundant loop.The connection to the Port of Skagit fiber network provides a much needed redundant loop. Use of funds Describe the specifics of what funds will be spent on (e.g., labor, equipment, material,etc.): The grants funds would be used for the construction costs [labor and materials] of the project.All permit costs and engineering costs would be funded by the City of Anacortes. Form Updated February 11,2016 Page 8 Part 3 Required Resources Provide a budget that shows a breakdown of project costs.Please also provide a breakdown of current and proposed funding that clearly illustrates the total funding required for the project listed by individual funding source,including any money from the Public Fadlittes fund.Specify any conditions attached to any funding sources, _ , .... . .• • • ••.• . Budget Total fundingrequested from Distressed/Rural County Sales and Use Tax to fund public facilities projects in Skagit County tnot to exceed $500,000) 500,000 Amount primary sponsorforgartization is contributing to the project 450,000 - - Other Funding Source: Click here to enter text. text Other Funding Source: Click here to enter text. text . . . . Other Funding Source: Click here to enter text, text . . Other Funding Source: Click here to enter text. text Other Funding Source: Click here to enter text text — • • Total Project Cost 950,000 Comments Describe impact to project if not fully funded: Project will not prooccd. _ . . . • page 2 of 6 farm updated 9/2B/2.015 Page 9 Part 4 Growth Management Planning Per RCW 82.14.370(3)(a),the project must be listed as an item in the County's adopted overall economic development plan,or the economic development section of the County's comprehensive plan, or your city or town's comprehensive plan. Under which plan is the proposed project contained? (Please attach a resolution or ordinance documenting that the appropriate authority has included the project in one of the above plans.) The concept of developing a county wide fiber optic network has been discussed in several documents 1. SKAGIT COUNTY COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY(CEDS) and the 2. INTERLOCAL COMMUNICATIONS NETWORK CONSORTIUM AGREEMENT excerpts of the documents are below 1. SKAGIT COUNTY COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY(CEDS) Prepared for: Skagit Council of Governments,July 2003 Skagit County Comprehensive Economic Development Strategy(CEDS) Prepared for: Skagit Council of Governments 204 Montgomery Mount Vernon,WA 98273 (360)416-7875 Prepared by: E.D. Hovee&Company Skagit County Overall Economic Development Plan B. Economic&Development Priorities ...6. Attract high technology investment to Skagit County • Assurance of adequate infrastructure....cutting edge telecommunications including fiber optic ....8. Deployment of a regional high-speed fiber network designed to create economic vitality and quality employment center 2. INTERLOCAL COMMUNICATIONS NETWORK CONSORTIUM AGREEMENT Between Skagit County, Cities of Anacartes, Burlington, Mount Vernon,Sedro Woolley, PUD#1, and Port of Skagit County. 2005 Regarding the creation of a communications network throughout Skagit County. Signed July 2005 Section 2: Mission ...,provide a comprehensive fiber optic network .....Obtain funding as convenient or required....... Project location Incorporated Area Zoning: Multiple page 3 of 6 form updated 9/28/2015 Page 10 Part 5 Value Proposition Business Is this project supportive of a specific business? If so, how many?Please provide names of businesses if known. • The fiber network project is not specific to any business, however the network will allow future extensions to connect our businesses. Anacortes is investing in a municipal broadband network, because it will reap economic benefits. Many people and organizations have explored the positive relationship between municipal fiber Internet networks and economic development,including a White House Report published in January 2015. Municipal networks create jobs by ensuring businesses have fast, affordable, and reliable Internet access; the old DS!and cable networks just don't cut it.These networks improve the productivity of existing businesses and attract new businesses to communities, allow individuals to work from home more effectively,support advanced healthcare and security systems, strengthen local housing markets, and represent long term social investments in the form of better- connected schools and libraries.They also create millions of dollars in savings that can be reinvested into local economies. Jobs Describe, in specific detail, how this project will create jobs and/or allow for the retention of current jobs. �► Municipal networks create jobs, o Many organizations and people have produced reports,studies,and white papers analyzing the positive relationship between municipal fiber networks and employment. Municipal networks attract new businesses. • Municipal networks serve existing businesses and keep critical jobs in town. • Municipal networks support home-based productivity. • Municipal networks advance healthcare, education, and research. • Municipal networks initiate tech booms and incubate start-ups. • Based on our research the average number of jobs created is in excess of 200 per entity. We are forecasting a more conservative number of 50 jobs that will eventually be created. Job Detail Provide information on the following:(a)the average wage,including benefits,and the number of new jobs/FTEs;and (b)the average wage,including benefits, as the result of the project. Please be specific as possible. Generic information may not be scored. Do not include any construction-related jobs. Jobs/FrEs Retained JobsJFTEs Created 1-3 Years Jabs/FTEs Created 4 Years Number of Jobs/FTEs 10 15 50 Average Wage/FTE 30/hr 35/hr 40/hr Infrastructure How will this project improve local infrastructure capacity? How much additional capacity will be provided for future development? Please be specific in your answer. The current Skagit County public fiber network connects Mount Vernon, Burlington, Sedro Woolley, Port of Skagit and others.The City of Anacortes is the largest city in Skagit County that is not connected to public fiber. Utilizing and extending the current public fiber system will allow Anacortes to connect our core infrastructure and facilities with low cost high capacity fiber optics. Once completed the network will allow our water and waste water facilities to reduce or eliminate the reliance on radio based telemetry to communicate and operate our remote pumping and storage facilities. The network would allow our public safety and emergency operations center to be directly connected to the county wide fiber system. In addition the network will connect the city Anacortes fire department facilities and police department to the county wide system. The City of Anacortes fiber network will have additional excess capacity built in,to allow future network extensions. page 4 of 6 form updated 9/28/2015 Page 11 Part 6 Project Timeline Timeline Provide a timeline for the project. Please include specific deadlines for segments or phases of the project, including total project begin date and completion date. Based on funding and success of the other joint applications, we anticipate moving forward with construction late in 2016. With completion in 2017.The construction is fairly straight forward, however some of the construction techniques are specialized which could impact project schedule. It is our intention to move forward as quickly as possible. Phasing if this is a phased project, for which phase are you applying for funding? There are no established phases per se. subsequent to the establishment of a fiber link from Mount Vernon to Anacortes city hall.We would begin the process of connecting our government buildings as soon as possible. The future extensions to other facilities would occur in the future. Completion By what date will the project(or this phase) be complete? Funds will lapse and may not be spent after this date. We anticipate progressing with the project as soon as possible with anticipated completion in 2017.To be safe we are allowing ourselves a December 2017 completion date. If these grant funds are awarded we would expend those initially and that would accelerate the grant fund expenditure. Efforts So Far Summarize efforts taken to date regarding the project. What planning has taken place? Have engineering reports and feasibility studies been prepared? If so, describe them. • The City of Anacortes has been in planning stages of this project since the beginning of 2015. • The Anacortes City Council has been involved with 3 study sessions. • Mid October 2015 several staff members,the Mayor, a city council representative and staff from neighboring entities travelled to Sandy Oregon to study and learn from their municipal fiber based broad band network. • A consultant has developed a financial model including preliminary cost estimates. • We have engaged a fiber optic network design firm and they are assisting us in route development. • We have developed a website link to solicit public feedback.[ Reportedly over 200 visitors to just the fiber site] • A contractor has provided construction cost estimates for the portion of work utilizing existing utility corridors. • We have worked collaboratively with Mount Vernon and Skagit County staff to develop cost estimates for the remainder of the route. Part 7 Action Plan What quantifiable measures are you going to track to measure the success of the project? We will coordinate with the Anacortes Chamber of Commerce and the City of Anacortes planning and economic development office, to track employment numbers.The number of fiber connections will be another measure of success. page S of 6 form updated 9/28/2015 Page 12 • • Part 8 Miscellaneous Include information related to the project,if any, that would assist the Economic Development Advisory Committee and the Beard • County Commissioners in evaluating the funding request, such as emergency declarations,bird-in-hand industry,vol steer• • efforts,links to other priority projects,etc. We believe this project is an excellent use of the Economic Development Grant funds.This is collaborative effort being put forth by the City of Anacortes,the Port of Skagit,the City of Mount Vernon and Skagit County staff.Each of the agency • application submittals are integrally linked to the other. ■ This project when combined with the joint applications being submitted by the Port of Skagit and City of Mount Vernon will provide for an extension of the existing public fiber network to the western portion of Skagit County. The current Skagit County public fiber network connects Mount Vernon, Burlington, Sedro Woolley,Port of Skagit and others.The City of Anacortes is the largest city in Skagit County that is not connected to public fiber. In addition to providing a backbone for the Anacortes municipal fiber network, this extension would provide a county wide redundant loop. Currently the Port of : Skagit network exists without the benefit of a redundant loop.This combined project provides a much needed redundant fiber loop for both the Port of Skagit system and the western portion of Skagit County. • Part 9 Applicant Certification The applicant.here-certifies and affirms 41 that:it does not riow, nor Will it u ing the performance of any contract arising from this • application,:unlawfully discriminate against any eiployee,applicant for employment, client, customer, or other person who might benefitbenefif.freii.SaidOntract,by reason of age:race •color,'ethn€city,sex, religion, creed, place of birth, or degree of handicap; (2)that .it will:abide: y ail.relevant local,state and federal laws and regulations;and(3) that it has read and understood the provisions and restri le'tis lii:ea°t-N Part above and will corriply with all provisions thereof. •• • irsatt�re ._.. Date • • - it . Printed Name:. F ed Suckenmeyer Title r page 6o€6 Page 13 form updatedW28/201.5