010-20 - Resolution - Contract with Commerce for the McCormick Woods Sanitary Sewer Lift Station No. 2 Rebuild ProjectRESOLUTTON NO.010-20
A RESOLUTTON OF THE CtTy OF PORT ORCHARD, WASHTNGTON,
ACCEPTING TERMS AND CONDITIONS ASSOCIATED WITH DEPARTMENT OF
COMMERCE GRANT NO. 20.96627.L55, AND AUTHORIZING THE MAYOR TO
EXECUTE A CONTRACT WITH COMMERCE FOR THE MCCORMICK WOODS
SANITARY SEWER LIFT STATION NO. 2 REBUILD PROJECT.
WHEREAS, on June 25,2019, the City of Port Orchard was awarded an 5800,000
direct appropriation state grant from the 201-9-2020 Capital Budget for the McCormick
Woods Sanitary Sewer Lift Station No. 2 Rebuild Project; and
WHEREAS, on July L5,2Ot9, the City's Public Works Department submitted the
required Contract Readiness Survey, Historic & Cultural Resources Review and the LEED
Certification Documentation to Commerce; and
WHEREAS, on March L7,2020, the City's Public Works Department received
concurrence of 'No Cultural Resources lmpact' from the Department of Archaeological &
Historic Preservation; and
WHEREAS, on March L9,2O2O, the City of Port Orchard received Direct
Appropriation Grant Agreement No. 20-96627-1-55; and
WHEREAS, the City Council has determined it to be in the best interests of the City
to enter into a Contract with Commerce for the McCormick Woods Sanitary Sewer Lift
Station No. 2 Rebuild Project; now, therefore,
THE CtW COUNC|L OF THE CtTy OF PORT ORCHARD, WASHTNGTON, HEREBY
RESOTVES AS FOLLOWS:
THAT: The Mayor or designee is hereby authorized to execute the contract with the
Department of Commerce for Grant Number 20-96627-155 for the McCormick
Woods Sanitary Sewer Lift Station No. 2 Rebuild Project attached hereto as Exhibit
A.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the Clerk in authentication of such passage this 14th day of April, 2020.
Robert Putaansuu,Mayor
ATTEST:
n, MMC, City Clerk
Department of Commerce
Grant to
For
Contract No. 089-19
City of Port Orchard
through
The Local and Community Projects Program
McCormick Woods Sewer Lift Station
Staft date: July 1, 20t9
Washington State Department of Commerce
\ n ,w.commerce.wa.gov
SPECIAL TERMS AND CONDITIONS
TABLE OF CONTENTS
FACE SHEET......
DECLARATIONS
GRANT MANAGEMENT
COMPENSATION
CERTIFICATION OF FTINDS PERFORMANCE MEASURES
PREVAILING WAGE LAW
DOCUMENTATION AND SECURITY ....
BASIS FOR ESTABLISHING REAL PROPERTY VALUES FOR ACQUISITIONS OF
REAL PROPERTY PERFORMANCE MEASURES .......7
7. EXPENDITURES ELIGIBLE FOR REIMBURSEMENT................ ..............7
8. BILLING PROCEDURES AND PAYMENT
9. SUBCONTRACTOR DATA COLLECTION
8
...9
10. CERTIFIED PROJECT COMPLETION REPORT AND FINAL PAYMENT 9
1 I. INSURANCE ...9
12. ORDER OF PRECEDENCE
13.REDUCTION IN FUNDS
14. OWNERSHIP OF PROJECT/CAPITAL FACILITIES
I5. CHANGE OF OWNERSHIP OR USE FOR GRANTEE-OWNED PROPERTY ........... I 1
16. CHANGE OF USE FOR LEASED PROPERTY PERFORMANCE MEASURE ........... 12
17. SIGNAGE, MARKERS AND PUBLICATIONS ..,....................12
2
4
6
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2.
4.
5.
6.
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18. HISTORICAL AND CULTURAL ARTIFACTS
19. REAPPROPRIATION
20. TERMTNATION FOR FRAUD OR MISREPRESENTATION................
GENERAL TERMS AND CONDITIONS
21. DEFINITIONS
22. ACCESSTODATA
23. ADVANCE PAYMENTS PROHIBITED
24.ALL WRITINGS CONTAINED HEREIN
25. AMENDMENTS
26. AMERICANS WITH DISABILITIES ACT (ADA) OF I990. PUBLIC LAW I01-336"
ALSO REFERRED TO AS THE "ADA" 28 CFR PART 35
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27. ASSIGNMENT
28. ATTORNEYS'FEES
29. AUDIT
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30.CONFIDENTIALITY/SAF ARDING OF INFORMATION
31. CONFLICT OF INTEREST
32. COPYRIGHT PROVISIONS
33. DISPUTES...........
34. DUPLICATE PAYMENT
35. GOVERNING LAW AND VENUE
36. INDEMNIFICATION
37. INDEPENDENT CAPACITY OF THE GRANTEE
38.TRIAL IN
39. LAWS
40.LICENSING^ ACCREDITA ON AND REGISTRATION
4I. LIMITATION OF AUTHORITY.
42. NONCOMPLIANCE WITH NONDISCRIMINATION LAWS
43. PAY EQUITY.
44.AL ACTIVIT
45. PUBLICITY.
46. RECAPTURE
47.RECORDS MAINTENANCE.
48. REGISTRATION WITH DEPARTMENT OF REVENUE
49. RIGHT OF PECTION
50. SAVINGS
5I. SEVERABILITY
52. SITE SECURITY
53.UBCONTRA
54. SURVIVAL
55. TAXES
56.TERMINATION FOR CAUSE
57. TERMINATION FOR CONVENIENCE
58. TERMINATION PROCEDURES...........
59. TREATMENT OF ASSETS
60. WAIVER.....................
ATTACHMENT A - SCOPE OF WORK
ATTACHMENT R -CERTIFICATION OF THE AVAILABILITY OF FUNDS TO
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COMPLETE THE PROJECT.26
PREVAILING WAGES
TIFICATION R
28
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ATTACHMENT D - CERTIFICATION OF INTENT TO ENTER THELEADERSHIP IN
E\LERGY AN D ENVIRONM ENTAL DES IGN (LEED) CERTIF ICATION PROCES S .......... 3 O
FACE SHEET
Washington State Department of Commerce
Local Government Division
Community Assistance and Research Unit
Grant Number: 20-96627 -155
Project Name: McCormick Woods Sewer Lift Station
I. GRANTEE
City of Port Orchard
2I6 PROSPECT ST
PORT ORCHARD, WA 98366-5326
2. GRANTEE Doing Business As (optional)
N/A
3. GRANTEE Representative
Heidi Draper,
(360) 876-4407
hdraper@cityofr ortorchard. us
4. COMMERCE Representative
Susan Butz, Grant Manager
PO Box 42525, Olympia, WA 98504
(360) 72s-2741
susan.butz@commerce.wa. gov
5. Grant Amount
$784,000.00
6. Funding Source
Federal: State:X Other: N/A:
7. Start Date
July l,2019
8. End Date
June30,2023
(subi ect to reappropriation)
9. Federal Funds (as applicable)
N/A
Federal Agency
N/A
CFDA Number
N/A
10. Tax ID #
XXXXXXXXXXXXXX
ll. swv#
swv0025665-00
t2.uBt#
I 82000005
13. DUNS #
N/A
14. Grant Purpose
The outcome of this performance-based Grant Agreement is to undertake a legislatively approved project that furthers the goals and
objectives of Washington State Direct Appropriations Program as referenced in Attachment A - Scope of Work.
COMMERCE, defined as the Washington State Department of Commerce, and the GRANTEE, as defined above, acknowledge and
accept the terms ofthis Grant and attachments and have executed this Grant on the date below to start as ofthe date and year
referenced above. The rights and obligations of both parties to this Grant are governed by this Grant and the following other
documents incorporated by reference: Grant Terms and Conditions including Attachment "A" - Scope of Work, Attachment "B" -
Certification of Availability of Funds to Complete the Project, Attachment "C" - Certification of the Payment and Reporting of
Prevailing Wages, Attachment "D" - Certification of Intent to Enter LEED Process.
FOR GRANTEE
Signature
Print Name
Title
Date
9 - ts Jne>
FORCOMMERCE
Mark K. Barkley, Assistant Director
Local Government Division
Date
APPROVED AS TO FORM
Luke Eaton, Assistant Attorney General
8n3t2019
Date
2
DECLARATIONS
GRANTEE INFORMATION
GRANTEE Name:
Grant Number:
State Wide Vendor Number:
PROJECT INFORMATION
Project Name:
Project City:
Project State:
Project Zip Code:
GRANT AGREEMENT INFORMATION
Grant Amount:
Appropriation Number
Re-appropriation Number (if applicable) :
Grant End Date:
Biennium:
Biennium Close Date:
Earliest Date for Construction Reimbursement:
City of Port Orchard
20-96627-t55
swv002s66s-00
McCormick Woods Sewer Lift Station
PORT ORCHARD
Washington
98366-s326
$784,000.00
SHB I l02.PL Section 1042 (2019 Regular
Session)
N/A
June 30,2023 (subject to reappropriation)
2019-2021
June30,202l
July 1,2016
ADDITIONAL SPECIAL TERMS AND CONDITIONS GOVERNING THIS AGREEMENT
N/A
4
SPECIAL TERMS AND CONDITIONS
GENERAL GRANT
STATE FUNDS
THIS GRANT AGREEMENT, entered into by and between the GRANTEE and COMMERCE, as defined
on the Face Sheet of this Grant Agreement, WITNESSES THAT:
WHEREAS, COMMERCE has the statutory authority under RCW 43.330.050 (5) to cooperate
with and provide assistance to localgovernments, businesses, and community-based
organizations; and
WHEREAS, COMMERCE is also given the responsibility to administer state funds and programs
which are assigned to COMMERCE by the Governor or the Washington State Legislature; and
WHEREAS, the Washington State Legislature has made an appropriation to support the Local
and Community Projects Program, and directed COMMERCE to administer those funds; and
WHEREAS, the enabling legislation also stipulates that the GRANTEE is eligible to receive
funding for design, acquisition, construction, or rehabilitation (a venture hereinafter referred to as
the "Project").
NOW, THEREFORE, in consideration of covenants, conditions, performances, and promises hereinafter
contained, the parties hereto agree as follows:
1. GRANT MANAGEMENT
The Representative for each of the parties shall be responsible for and shall be the contact person for
all communications and billings regarding the performance of this Grant.
The Representative for COMMERCE and their contact information are identified on the Face
Sheet of this Grant.
The Representative for the GRANTEE and their contact information are identified on the Face
Sheet of this Grant.
2. COMPENSATION
COMMERCE shall pay an amount not to exceed the awarded Grant Amount_as shown on lhe_Face
Sheet of this Grant Aqreement. for the capital costs necessary for or incidental to the performance of
work as set forth in the Scope of Work.
3. CERTIFICATION OF FUNDS PERFORMANCE MEASURES
A. The release of state funds under this Grant Agreement is contingent upon the GRANTEE
certifying that it has expended or has access to funds from non-state sources as set forth in
ATTACHMENT B (CERT|F|CAT|ON OF THE AVA|LABTLtry OF FUNDS TO COMPLETE THE
PROJECT), hereof. Such non-state sources may consist of a combination of any of the following
i) Eligible Project expenditures prior to the execution of this Grant Agreement.
ii) Cash dedicated to the Project.iii) Funds available through a letter of credit or other binding loan commitment(s).
iv) Pledges from foundations or corporations.v) Pledges from individual donors.vi) The value of real property when acquired solely for the purposes of this Project, as
established and evidenced by a current market value appraisal performed by a licensed,
professional real estate appraiser, or a current property tax statement. COMMERCE will
not consider appraisals for prospective values of such property for the purposes of
calculating the amount of non-state matching fund credit.
vii) ln-kind contributions, subject to COMMERCE'S approval.
6
B. The GRANTEE shall maintain records sufficient to evidence that it has access to or has
expended funds from such non-state sources, and shall make such records available for
COMMERCE's review upon reasonable request.
4. PREVAILING WAGE LAW
The Project funded under this Grant may be subject to state prevailing wage law (Chapter 39.12
RCW). The GRANTEE is advised to consult the lndustrial Statistician at the Washington Department
of Labor and lndustries to determine whether prevailing wages must be paid. COMMERCE is not
responsible for determining whether prevailing wage applies to this Project or for any prevailing wage
payments that may be required by law.
5. DOCUMENTATION AND SECURITY
The provisions of this section shall apply to capital projects performed by nonprofit organizations that
involve the expenditure of over $500,000 in state funds. Projects for which the grant award or
legislative intent documents specify that the state funding is to be used for design only are exempt
from this section.
A. Deed of Trust. This Grant shall be evidenced by a promissory note and secured by a deed of
trust or other appropriate security instrument in favor of COMMERCE (the "Deed of Trust"). The
Deed of Trust shall be recorded in the County where the Project is located, and the original
returned to COMMERCE after recordation within ninety (90) days of Grant Agreement execution.
The Deed of Trust must be recorded before COMMERCE will reimburse the GRANTEE for any
Project costs. The amount secured by the Deed of Trust shall be the amount of the Grant as set
forth on the Face Sheet, hereof.
B. Term of Deed of Trust. The Deed of Trust shall remain in full force and effect for a period of ten
(10) years following the final payment of state funds to the GRANTEE under this grant. Upon
satisfaction of the ten-year term requirement and all other grant terms and conditions,
COMMERCE shall, upon written request of the GRANTEE, take appropriate action to reconvey
the Deed of Trust.
G. Title lnsurance. The GRANTEE shall purchase an extended coverage lender's policy of title
insurance insuring the lien position of the Deed of Trust in an amount not less than the amount of
the grant.
D. Subordination. COMMERCE may agree to subordinate its deed of trust upon request from a
private or public lender. Any such request shall be submitted to COMMERCE in writing, and
COMMERCE shall respond to the request in writing within thirty (30) days of receiving the
request.
6 BASIS FOR ESTABLI ESREAL PROPERTY VALU FOR SITIONS OF REAL
PROPERTY PERFORMANCE MEASURES
When the grant is used to fund the acquisition of real property, the value of the real property
eligible for reimbursement under this grant shall be established as follows:A. GRANTEE purchases of real property from an independent third-party seller shall be evidenced
by a current appratsal prepared by a licensed Washington State commercial real estate
appraiser, or a current property tax statement.
B. GRANTEE purchases of real property from a subsidiary organization, such as an affiliated LLC,
shall be evidenced by a current appraisal prepared by a licensed Washington State commercial
real estate appraiser or the prior purchase price of the property plus holding costs, whichever is
less.
7. EXPENDITURES ELIGIBLE FOR REIMBURSEMENT
Payments to the Grantee shall be made on a reimbursement basis only. Costs incurred on or after
the EARLIEST DATE FOR CONSTRUCTION REIMBURSEMENT as shown on the Declarations
page are eligible for reimbursement under this Grant Agreement. The GRANTEE may be reimbursed
for the following eligible costs related to the activities identified in the SCOPE OF WORK shown on
Attachment A.
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A. Real property, and costs directly associated with such purchase, when purchased or acquired
solely for the purposes of the Project;
B. Design, engineering, architectural, and planning;
C. Construction management and observation (from externalsources only);
D. Construction costs including, but not limited to, the following:
Site preparation and improvements;
Permits and fees;
Labor and materials;
Taxes on Project goods and services;
Gapitalized equipment;
lnformation technology infrastructure; and
Landscaping.
E. Other costs authorized through the legislation
8. BILLING PROCEDURES AND PAYMENT
COMMERCE shall reimburse the GRANTEE for eligible Project expenditures, up to the maximum
payable under this Grant Agreement. When requesting reimbursement for expenditures made, the
GRANTEE shall submit to COMMERCE a signed and completed lnvoice Voucher (Form A-19), that
documents capitalized Project activity performed for the billing period. The GRANTEE can submit all
lnvoice Vouchers and any required documentation electronically through COMMERCE's Contracts
Management System (CMS), which is available through the Secure Access Washington (SAW)
portal.
The GRANTEE shall evidence the costs claimed on each voucher by including copies of each invoice
received from vendors providing Project goods or services covered by the Grant Agreement. The
GRANTEE shall also provide COMMERCE with a copy of the cancelled check or electronic funds
transfer, as applicable, that confirms that they have paid each expenditure being claimed. The
cancelled checks or electronic funds transfers may be submitted to COMMERCE at the time the
voucher is initially submitted, or within thirty (30) days thereafter.
The voucher must be certified (signed) by an official of the GRANTEE with authority to bind the
GRANTEE. The final voucher shall be submitted to COMMERCE within sixty (60) days following the
completion of work or other termination of this Grant Agreement, or within fifteen (15) days following
the end of the state biennium unless Grant Agreement funds are reappropriated by the Legislature in
accordance with Section 19, hereof.
Each request for payment must be accompanied by a Project Status Report, which describes, in
narrative form, the progress made on the Project since the last invoice was submitted, as well as a
report of Project status to date. COMMERCE will not release payment for any reimbursement
request received unless and until the Project Status Report is received. After approving the lnvoice
Voucher and Project Status Report, COMMERCE shall promptly remit a warrant to the GRANTEE.
COMMERCE will pay GRANTEE upon acceptance of services provided and receipt of properly
completed invoices, which shall be submitted to the Representative for COMMERCE not more often
than monthly.
Payment shall be considered timely if made by COMMERCE within thirty (30) calendar days after
receipt of properly completed invoices. Payment shall be sent to the address designated by the
GRANTEE.
COMMERCE may, in its sole discretion, terminate the Grant or withhold payments claimed by the
GRANTEE for services rendered if the GRANTEE fails to satisfactorily comply with any term or
condition of this Grant.
No payments in advance or in anticipation of services or supplies to be provided under this
Agreement shall be made by COMMERCE.
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Duplication of Billed Costs
The GRANTEE shall not bill COMMERCE for services performed under this Grant Agreement, and
COMMERCE shall not pay the GRANTEE, if the GRANTEE is entitled to payment or has been or will
be paid by any other source, including grants, for that service.
Disallowed Costs
The GMNTEE is responsible for any audit exceptions or disallowed costs incurred by its own
organization or that of its subgrantees.
9. SUBCONTRACTOR DATA COLLECTION
GRANTEE will submit reports, in a form and format to be provided by COMMERCE and at intervals
as agreed by the parties, regarding work under this Grant performed by subcontractors and the
portion of Grant funds expended for work performed by subcontractors, including but not necessarily
limited to minority-owned, woman-owned, and veteran-owned business subcontractors.
"Subcontractors" shall mean subcontractors of any tier.
10. CERTIFIED PROJECT COMPLETION REPORT AND FINAL PAYMENT
The GRANTEE shall complete a Certified Project Completion Report when activities identified in the
SCOPE OF WORK shown on Attachment A are complete.
The GRANTEE shall provide the following information to COMMERCE:
A. A certified statement that the Project, as described in the SCOPE OF WORK shown on Attachment
A, is complete and, if applicable, meets required standards.
B. A certified statement of the actual dollar amounts spent, from all funding sources, in completing the
project as described in the SCOPE OF WORK shown on Attachment A.
C. Certification that all costs associated with the Project have been incurred and accounted for. Costs
are incurred when goods and services are received and/or Grant work is performed.
D. A final voucher for the remaining eligible funds, including any required documentation.
The GRANTEE will submit the Certified Project Completion Report together with the last lnvoice
Voucher for a sum not to exceed the balance of the Grant Amount.
11. INSURANCE
The GRANTEE shall provide insurance coverage as set out in this section. The intent of the required
insurance is to protect the state of Washington should there be any claims, suits, actions, costs,
damages or expenses arising from any loss, or negligent or intentional act or omission of the
GRANTEE, or Subgrantee, or agents of either, while performing under the terms of this Grant.
The insurance required shall be issued by an insurance company authorized to do business within
the state of Washington. Except for Professional Liability or Errors and Omissions lnsurance, the
insurance shall name the state of Washington, its agents, officers, and employees as additional
insureds under the insurance policy. All policies shall be primary to any other valid and collectable
insurance. The GRANTEE shall instruct the insurers to give COMMERCE thirty (30) calendar days
advance notice of any insurance cancellation or modification.
The GRANTEE shall submit to COMMERCE within fifteen (15) calendar days of the Grant start date,
a certificate of insurance which outlines the coverage and limits defined in this insurance section.
During the term of the Grant, the GRANTEE shall submit renewal certificates not less than thirty (30)
calendar days prior to expiration of each policy required under this section.
The GRANTEE shall provide insurance coverage that shall be maintained in full force and effect
during the term of this Grant, as follows:
GommercialGeneral Liability lnsurance Policy. Provide a Commercial General Liability lnsurance
Policy, including contractual liability, written on an occurrence basis, in adequate quantity to protect
against legal liability arising out of Grant activity but no less than $1,000,000 per occurrence.
o
Additionally, the GRANTEE is responsible for ensuring that any Subgrantee/subcontractor provide
adequate insurance coverage for the activities arising out of subgrants/subcontracts.
Automobile Liability. ln the event that performance pursuant to this Grant involves the use of
vehicles, owned or operated by the GRANTEE or its Subgrantee/subcontractor, automobile liability
insurance shall be required. The minimum limit for automobile liability is $1,000,000 per occurrence,
using a Combined Single Limit for bodily injury and property damage.
Professional Liability, Errors and Omissions lnsurance. The GRANTEE shall maintain
Professional Liability or Errors and Omissions lnsurance. The GRANTEE shall maintain minimum
limits of no less than $1,000,000 per occurrence to cover all activities by the GRANTEE and licensed
staff employed or under contract to the GRANTEE. The state of Washington, its agents, officers, and
employees need nof be named as additional insureds under this policy.
Fidelity lnsurance. Every officer, director, employee, or agent who is authorized to act on behalf of
the GRANTEE for the purpose of receiving or depositing funds into program accounts or issuing
financial documents, checks, or other instruments of payment for program costs shall be insured to
provide protection against loss:
A. The amount of fidelity coverage secured pursuant to this Grant shall be $2,000,000 or the highest
of planned reimbursement for the Grant period, whichever is lowest. Fidelity insurance secured
pursuant to this paragraph shall name COMMERCE as beneficiary.
B. Subgrantees/subcontractors that receive $10,000 or more per year in funding through this Grant
shall secure fidelity insurance as noted above. Fidelity insurance secured by
Subgrantees/subcontractors pursuant to this paragraph shall name the GRANTEE and the
GRANTEE's fiscal agent as beneficiary.
C. The GRANTEE shall provide, at COMMERCE's request, copies of insurance instruments or
certifications from the insurance issuing agency. The copies or certifications shall show the
insurance coverage, the designated beneficiary, who is covered, the amounts, the period of
coverage, and that COMMERCE will be provided thirty (30) days advance written notice of
cancellation.
GRANTEES and Local Governments that Participate in a Self-lnsurance Program.
Self-lnsured/Liability Pool or Self-lnsured Risk Management Program - With prior approval from
COMMERCE, the GRANTEE may provide the coverage above under a self-insured/liability poolor
self-insured risk management program. ln order to obtain permission from COMMERCE, the
GRANTEE shall provide: (1) a description of its self-insurance program, and (2) a certificate and/or
letter of coverage that outlines coverage limits and deductibles. All self-insured risk management
programs or self-insured/liability pool financial reports must comply with Generally Accepted
Accounting Principles (GAAP) and adhere to accounting standards promulgated by: 1) Governmental
Accounting Standards Board (GASB), 2) FinancialAccounting Standards Board (FASB), and 3) the
Washington State Auditor's annual instructions for financial reporting. GRANTEE's participating in
joint risk pools shall maintain sufficient documentation to support the aggregate claim liability
information reported on the balance sheet. The state of Washington, its agents, and employees need
not be named as additional insured under a self-insured property/liability pool, if the pool is prohibited
from naming third parties as additional insured.
GRANTEE shall provide annually to COMMERCE a summary of coverages and a letter of self
insurance, evidencing continued coverage under GRANTEE's self-insured/liability pool or self-insured
risk management program. Such annual summary of coverage and letter of self insurance will be
provided on the anniversary of the start date of this Agreement.
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12. ORDEROF PRECEDENCE
ln the event of an inconsistency in this Grant, the inconsistency shall be resolved by giving
precedence in the following order:. Applicable federal and state of Washington statutes and regulations. Declarations page of this Grant Agreement. SpecialTerms and Conditions. GeneralTerms and Conditionso Attachment A - Scope of Work. Attachment B - Certification of the Availability of Funds to Complete the Project. Attachment C - Certification of the Payment and Reporting of Prevailing Wages. Attachment D - Certification of lntent to Enter the Leadership in Energy and Environmental
Design (LEED) Certification Process
13. REDUCTION IN FUNDS
ln the event state funds appropriated for the work contemplated under this Grant Agreement are
withdrawn, reduced, or limited in any way by the Governor or the Washington State Legislature during
the Grant Agreement period, the parties hereto shall be bound by any such revised funding limitations
as implemented at the discretion of COMMERCE, and shall meet and renegotiate the Grant
Agreement accordingly.
14. OWNERSHIP OF PROJECT/CAPITAL FACILITIES
COMMERCE makes no claim to any real property improved or constructed with funds awarded under
this Grant Agreement and does not assert and will not acquire any ownership interest in or title to the
capital facilities and/or equipment constructed or purchased with state funds under this Grant
Agreement; provided, however, that COMMERCE may be granted a security interest in real property,
to secure funds awarded under this Grant Agreement. This provision does not extend to claims that
COMMERCE may bring against the GRANTEE in recapturing funds expended in violation of this
Grant Agreement.
15. CHANGE OF OWNERSHIP OR USE FOR GRANTEE.OWNED PROPERTY
A. The GMNTEE understands and agrees that any and all real property or facilities owned by the
GRANTEE that are acquired, constructed, or othenivise improved by the GRANTEE using state
funds under this Grant Agreement, shall be held and used by the GRANTEE for the purpose or
purposes stated elsewhere in this Grant Agreement for a period of at least ten (10) years from the
date the final payment is made hereunder.
B. This provision shall not be construed to prohibit the GRANTEE from selling any property or
properties described in this section; Provided, that any such sale shall be subject to prior review
and approval by COMMERCE, and that all proceeds from such sale shall be applied to the
purchase price of a different facility or facilities of equal or greater value than the original facility
and that any such new facility or facilities will be used for the purpose or purposes stated
elsewhere in this Grant Agreement.
C. ln the event the GRANTEE is found to be out of compliance with this section, the GRANTEE shall
repay to the state general fund the principal amount of the grant as stated on the Face Sheet,
hereof, plus interest calculated at the rate of interest on state of Washington general obligation
bonds issued most closely to the effective date of the legislation in which the subject facility was
authorized. Repayment shall be made pursuant to Section 46 (Recapture provision).
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16. CHANGE OF USE FOR LEASED PROPERTY PERFORMANCE MEASURE
A. The GRANTEE understands and agrees that any facility leased by the GRANTEE that is
constructed, renovated, or otherwise improved using state funds under this Grant Agreement
shall be used by the GRANTEE for the purpose or purposes stated elsewhere in this Grant
Agreement for a period of at least ten (10) years from the date the final payment is made
hereunder.
B. ln the event the GRANTEE is found to be out of compliance with this section, the GRANTEE shall
repay to the state general fund the principal amount of the grant as stated on the Face Sheet,
hereof, plus interest calculated at the rate of interest on state of Washington general obligation
bonds issued most closely to the effective date of the legislation in which the subject facility was
authorized. Repayment shall be made pursuant to Section 46 (Recapture Provision).
17. SIGNAGE. MARKERS AND PUBLICATIONS
lf, during the period covered by this Grant Agreement, the GRANTEE displays or circulates any
communication, publication, or donor recognition identifying the financial participants in the Project,
any such communication or publication must identify "The Taxpayers of Washington State" as a
participant.
18. HISTORICAL AND CULTURAL ARTIFACTS
Prior to approval and disbursement of any funds awarded under this Grant Agreement, GRANTEE
shall complete the requirements of Governor's Executive Order 05-05, where applicable, or
GRANTEE shall complete a review under Section 106 of the National Historic Preservation Act, if
applicable. GRANTEE agrees that the GRANTEE is legally and financially responsible for compliance
with all laws, regulations, and agreements related to the preservation of historical or cultural
resources and agrees to hold harmless COMMERCE and the state of Washington in relation to any
claim related to such historical or cultural resources discovered, disturbed, or damaged as a result of
the project funded by this Grant Agreement.
ln addition to the requirements set forth in this Grant Agreement, GRANTEE shall, in accordance with
Governor's Executive Order 05-05, coordinate with COMMERCE and the Washington State
Department of Archaeology and Historic Preservation ('DAHP'), including any recommended
consultation with any affected tribe(s), during Project design and prior to construction to determine the
existence of any tribal cultural resources affected by the Project. GRANTEE agrees to avoid,
minimize, or mitigate impacts to the cultural resource as a continuing prerequisite to receipt of funds
under this Grant Agreement.
The GRANTEE agrees that, unless the GRANTEE is proceeding under an approved historical and
cultural monitoring plan or other memorandum of agreement, if historical or cultural artifacts are
discovered during construction, the GRANTEE shall immediately stop construction and notify the
local historical preservation officer and the state's historical preservation officer at DAHP, and the
COMMERCE Representative identified on the Face Sheet. lf human remains are uncovered, the
GRANTEE shall report the presence and location of the remains to the coroner and local enforcement
immediately, then contact DAHP and the concerned tribe's cultural staff or committee.
The GRANTEE shall require this provision to be contained in all subcontracts for work or services
related to the Scope of Work attached hereto.
ln addition to the requirements set forth in this Grant Agreement, GRANTEE agrees to comply with
RCW 27.44 regarding lndian Graves and Records; RCW 27.53 regarding Archaeological Sites and
Resources; RCW 68.60 regarding Abandoned and Historic Cemeteries and Historic Graves; and
WAC 25-48 regarding Archaeological Excavation and Removal Permits.
Completion of the requirements of Section 106 of the National Historic Preservation Act shall
substitute for completion of Governor's Executive Order 05-05.
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ln the event that the GRANTEE finds it necessary to amend the Scope of Work the GRANTEE may
be required to re-comply with Governor's Executive Order 05-05 or Section 106 of the National
Historic Preservation Act.
19. REAPPROPRIATION
A. The parties hereto understand and agree that any state funds not expended by the BIENNIUM
CLOSE DATE listed on the Declarations page will lapse on that date unless specifically
reappropriated by the Washington State Legislature. lf funds are so reappropriated, the state's
obligation under the terms of this Grant Agreement shall be contingent upon the terms of such
reappropriation.
B. ln the event any funds awarded under this Grant Agreement are reappropriated for use in a future
biennium, COMMERCE reserves the right to assign a reasonable share of any such
reappropriation for administrative costs.
20. TERMINATION FOR FRAUD OR MISREPRESENTATION
ln the event the GMNTEE commits fraud or makes any misrepresentation in connection with the
Grant application or during the performance of this Grant Agreement, COMMERCE reserves the
right to terminate or amend this Grant Agreement accordingly, including the right to recapture all
funds disbursed to the GRANTEE under the Grant.
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GENERAL TERMS AND CONDITIONS
GENERAL GRANT
STATE FUNDS
21. DEFINITIONS
As used throughout this Grant, the following terms shall have the meaning set forth below:
A. "Authorized Representative" shall mean the Director and/or the designee authorized in writing to
act on the Director's behalf.
B. "COMMERCE" shall mean the Department of Commerce.C. "GRANTEE" shall mean the entity identified on the Face Sheet performing service(s) under this
Grant, and shall include all employees and agents of the GRANTEE.
D. "Personal lnformation" shall mean information identifiable to any person, including, but not limited
to, information that relates to a person's name, health, finances, education, business, use or
receipt of governmental services or other activities, addresses, telephone numbers, social
security numbers, driver license numbers, other identifying numbers, and any financial identifiers.
E. "State" shallmean the state of Washington.
F. "Subgrantee/subcontractor" shall mean one not in the employment of the GRANTEE, who is
performing all or part of those services under this Grant under a separate Grant with the
GRANTEE. The terms "subgrantee/subcontractor" refers to any tier.
G. "Subrecipient" shall mean a non-federal entity that expends federal awards received from a pass-
through entity to carry out a federal program, but does not include an individual that is a beneficiary
of such a program. lt also excludes vendors that receive federal funds in exchange for goods and/or
services in the course of normal trade or commerce.
H. "Vendor" is an entity that agrees to provide the amount and kind of services requested by
COMMERCE; provides services under the grant only to those beneficiaries individually determined
to be eligible by COMMERCE and, provides services on a fee-for-service or per-unit basis with
contractual penalties if the entity fails to meet program performance standards.
l. "Grant Agreement" or "Agreement" means the entire written agreement between COMMERCE
and the GRANTEE, including any Attachments, Exhibits, documents, or materials incorporated by
reference.
22. ACCESS TO DATA
ln compliance with RCW 39.26.180, the GRANTEE shall provide access to data generated under this
Grant to COMMERCE, the Joint Legislative Audit and Review Committee, and the Office of the State
Auditor at no additional cost. This includes access to all information that supports the findings,
conclusions, and recommendations of the GRANTEE's reports, including computer models and the
methodology for those models.
23. ADVANGE PAYMENTS PROHIBITED
No payments in advance of or in anticipation of goods or services to be provided under this Grant shall
be made by COMMERCE.
24. ALL WRITINGS CONTAINED HEREIN
This Grant contains all the terms and conditions agreed upon by the parties. No other understandings,
oral or othenrvise, regarding the subject matter of this Grant shall be deemed to exist or to bind any of
the parties hereto.
25. AMENDMENTS
This Grant may be amended by mutual agreement of the parties. Such amendments shall not be
binding unless they are in writing and signed by personnel authorized to bind each of the parties.
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26. AMERICANS WITH DISABILITIES ACT (ADA) OF 1990. PUBLIC LAW 101.336. ALSO
REFERRED TO AS THE "ADA'' 28 CFR PART 35
The GRANTEE must comply with the ADA, which provides comprehensive civil rights protection to
individuals with disabilities in the areas of employment, public accommodations, state and local
government services, and telecommunications.
27. ASSIGNMENT
Neither this Grant, nor any claim arising under this Grant, shall be transferred or assigned by the
GRANTEE without prior written consent of COMMERCE.
28. ATTORNEYS'FEES
Unless expressly permitted under another provision of the Grant, in the event of litigation or other
action brought to enforce Grant terms, each party agrees to bear its own attorney's fees and costs.
29. AUDIT
A. General Requirements
COMMERCE reserves the right to require an audit. lf required, GRANTEEs are to procure audit
services based on the following guidelines.
The GRANTEE shall maintain its records and accounts so as to facilitate audits and shall ensure
that subgrantees also maintain auditable records.
The GRANTEE is responsible for any audit exceptions incurred by its own organization or that of
its subgrantees.
COMMERCE reserves the right to recover from the GRANTEE all disallowed costs resulting from
the audit.
Responses to any unresolved management findings and disallowed or questioned costs shall be
included with the audit report. The GRANTEE must respond to COMMERCE requests for
information or corrective action concerning audit issues within thirty (30) days of the date of
request.
B. State Funds Requirements
ln the event an audit is required, if the GRANTEE is a state or local government entity, the Office
of the State Auditor shall conduct the audit. Audits of non-profit organizations are to be
conducted by a certified public accountant selected by the GRANTEE.
The GRANTEE shall include the above audit requirements in any subcontracts.
ln any case, the GRANTEE's records must be available for review by COMMERCE.
G. Documentation Requirements
The GRANTEE must send a copy of the audit report described above no later than nine (9)
months after the end of the GRANTEE's fiscal year(s) by sending a scanned copy to
comacctoffice@commerce.wa.qov or a hard copy to:
Department of Commerce
ATTN: Accounting Services
1011 Plum Street SE
PO Box 42525
Olympia WA 98504-2525
ln addition to sending a copy of the audit, when applicable, the GRANTEE must include:. Corrective action plan for audit findings within three (3) months of the audit being
received by COMMERCE.. Copy of the Management Letter.
lf the GRANTEE is required to obtain a Single Audit consistent with Circular A-133 requirements,
a copy must be provided to COMMERCE; no other report is required.
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30.
A. "Confidential lnformation" as used in this section includes:
1. All material provided to the GRANTEE by COMMERCE that is designated as "confidential" by
COMMERCE;
2. All material produced by the GRANTEE that is designated as "confidential" by COMMERCE;
and3. All personal information in the possession of the GRANTEE that may not be disclosed under
state or federal law. "Personal information" includes but is not limited to information related to
a person's name, health, finances, education, business, use of government services,
addresses, telephone numbers, social security number, driver's license number and other
identifying numbers, and "Protected Health lnformation" under the federal Health lnsurance
Portability and Accountability Act of 1996 (HIPAA).
B. The GRANTEE shall comply with all state and federal laws related to the use, sharing, transfer,
sale, or disclosure of Confidential lnformation. The GRANTEE shall use Confidential lnformation
solely for the purposes of this Grant and shall not use, share, transfer, sell or disclose any
Confidential lnformation to any third party except with the prior written consent of COMMERCE or
as may be required by law. The GRANTEE shall take all necessary steps to assure that
Confidential lnformation is safeguarded to prevent unauthorized use, sharing, transfer, sale or
disclosure of Confidential lnformation or violation of any state or federal laws related thereto.
Upon request, the GRANTEE shall provide COMMERCE with its policies and procedures on
confidentiality. COMMERCE may require changes to such policies and procedures as they apply
to this Grant whenever COMMERCE reasonably determines that changes are necessary to
prevent unauthorized disclosures. The GRANTEE shall make the changes within the time period
specified by COMMERCE. Upon request, the GRANTEE shall immediately return to
COMMERCE any Confidential lnformation that COMMERCE reasonably determines has not
been adequately protected by the GRANTEE against unauthorized disclosure.
C. Unauthorized Use or Disclosure. The GRANTEE shall notify COMMERCE within five (5) working
days of any unauthorized use or disclosure of any confidential information, and shall take
necessary steps to mitigate the harmful effects of such use or disclosure.
31. CONFLICT OF INTEREST
Notwithstanding any determination by the Executive Ethics Board or other tribunal, COMMERCE
may, in its sole discretion, by written notice to the GRANTEE terminate this Grant Agreement if it is
found after due notice and examination by COMMERCE that there is a violation of the Ethics in Public
Service Act, Chapters 42.52 RCW and 42.23 RCW; or any similar statute involving the GRANTEE in
the procurement of, or performance under this Grant Agreement.
Specific restrictions apply to contracting with current or former state employees pursuant to chapter
42.52 of the Revised Code of Washington. The GRANTEE and their subcontracto(s) must identify
any person employed in any capacity by the state of Washington that worked on this Grant, or any
matter related to the project funded under this Grant or any other state funded project, including but
not limited to formulating or drafting legislation, participating in grant procurement, planning and
execution, awarding grants, or monitoring grants, during the 24 month period preceding the start date
of this Grant. ldentify the individual by name, the agency previously or currently employed by, job title
or position held, and separation date. lf it is determined by COMMERCE that a conflict of interest
exists, the GRANTEE may be disqualified from further consideration for the award of a Grant.
ln the event this Grant Agreement is terminated as provided above, COMMERCE shall be entitled to
pursue the same remedies against the GRANTEE as it could pursue in the event of a breach of the
Grant Agreement by the GRANTEE. The rights and remedies of COMMERCE provided for in this
clause shall not be exclusive and are in addition to any other rights and remedies provided by law.
The existence of facts upon which COMMERCE makes any determination under this clause shall be
an issue and may be reviewed as provided in the "Disputes" clause of this Grant Agreement.
16
32. COPYRIGHT PROVISIONS
Unless otherwise provided, all Materials produced under this Grant shall be considered "works for
hire" as defined by the U.S. Copyright Act and shall be owned by COMMERCE. COMMERCE shall
be considered the author of such Materials. ln the event the Materials are not considered "works for
hire" under the U.S. Copyright laws, the GRANTEE hereby irrevocably assigns all right, title, and
interest in all Materials, including all intellectual property rights, moral rights, and rights of publicity to
COMMERCE effective from the moment of creation of such Materials.
"Materials" means all items in any format and includes, but is not limited to, data, reports, documents,
pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes,
and/or sound reproductions. "Ownership" includes the right to copyright, patent, register and the
ability to transfer these rights.
For Materials that are delivered under the Grant, but that incorporate pre-existing materials not
produced under the Grant, the GRANTEE hereby grants to COMMERCE a nonexclusive, royalty-free,
irrevocable license (with rights to sublicense to others) in such Materials to translate, reproduce,
distribute, prepare derivative works, publicly perform, and publicly display. The GRANTEE warrants
and represents that the GRANTEE has all rights and permissions, including intellectual property
rights, moral rights and rights of publicity, necessary to grant such a license to COMMERCE.
The GRANTEE shall exert all reasonable effort to advise COMMERCE, at the time of delivery of
Materials furnished under this Grant, of all known or potential invasions of privacy contained therein
and of any portion of such document which was not produced in the performance of this Grant. The
GRANTEE shall provide COMMERCE with prompt written notice of each notice or claim of
infringement received by the GRANTEE with respect to any Materials delivered under this Grant.
COMMERCE shall have the right to modify or remove any restrictive markings placed upon the
Materials by the GRANTEE.
33. DISPUTES
Except as otherwise provided in this Grant, when a dispute arises between the parties and it cannot
be resolved by direct negotiation, either party may request a dispute hearing with the Director of
COMMERCE, who may designate a neutral person to decide the dispute.
The request for a dispute hearing must:. be in writing;r state the disputed issues;. state the relative positions of the parties;
. state the GRANTEE's name, address, and Grant number; and. be mailed to the Director and the other party's (respondent's) Grant Representative within
three (3) working days after the parties agree that they cannot resolve the dispute.
The respondent shall send a written answer to the requestor's statement to both the Director or the
Director's designee and the requestor within five (5) working days.
The Director or designee shall review the written statements and reply in writing to both parties within
ten (10) working days. The Director or designee may extend this period if necessary by notifying the
parties.
The decision shall not be admissible in any succeeding judicial or quasi-judicial proceeding.
The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial
tribunal.
Nothing in this Grant shall be construed to limit the parties' choice of a mutually acceptable alternate
dispute resolution (ADR) method in addition to the dispute hearing procedure outlined above.
17
34. DUPLICATE PAYMENT
COMMERCE shall not pay the GRANTEE, if the GRANTEE has charged or will charge the State of
Washington or any other party under any other Grant, subgrant/subcontract, or agreement, for the
same services or expenses.
35. GOVERNING LAW AND VENUE
This Grant shall be construed and interpreted in accordance with the laws of the state of Washington,
and the venue of any action brought hereunder shall be in the Superior Court for Thurston County.
36. INDEMNIFICATION
To the fullest extent permitted by law, the GRANTEE shall indemnify, defend, and hold harmless the
state of Washington, COMMERCE, agencies of the state and all officials, agents and employees of
the state, from and against all claims. "Claim" as used in this Grant Agreement, means any financial
loss, claim, suit, action, damage, or expense, including but not limited to attorney's fees, attributable
for bodily injury, sickness, disease, or death, or injury to or the destruction of tangible property
including loss of use resulting therefrom.
The GRANTEE's obligation to indemnify, defend, and hold harmless includes any claim by
GRANTEE's agents, employees, representatives, or any subgrantee/subcontractor or its employees.
GRANTEE expressly agrees to indemnify, defend, and hold harmless the State for any claim arising
out of or incident to GRANTEE'S or any subgrantee's/subcontractor's performance or failure to
perform the Grant. GRANTEE'S obligation to indemnify, defend, and hold harmless the State shall
not be eliminated or reduced by any actual or alleged concurrent negligence of State or its agents,
agencies, employees and officials.
The GRANTEE waives its immunity under Title 51 RCW to the extent it is required to indemnify,
defend and hold harmless the state and its agencies, officers, agents or employees.
37. INDEPENDENT CAPACITY OF THE GRANTEE
The parties intend that an independent contractor relationship will be created by this Grant. The
GRANTEE and its employees or agents performing under this Grant Agreement are not employees or
agents of the state of Washington or COMMERCE. The GRANTEE will not hold itself out as or claim
to be an officer or employee of COMMERCE or of the state of Washington by reason hereof, nor will
the GRANTEE make any claim of right, privilege or benefit which would accrue to such officer or
employee under law. Conduct and control of the work will be solely with the GRANTEE.
38. INDUSTRIAL INSURANCE COVERAGE
The GRANTEE shall comply with all applicable provisions of Title 51 RCW, lndustrial lnsurance. lf
the GRANTEE fails to provide industrial insurance coverage or fails to pay premiums or penalties on
behalf of its employees as may be required by law, COMMERCE may collect from the GRANTEE the
full amount payable to the lndustrial lnsurance Accident Fund. COMMERCE may deduct the amount
owed by the GRANTEE to the accident fund from the amount payable to the GRANTEE by
COMMERCE under this Grant Agreement, and transmit the deducted amount to the Department of
Labor and lndustries, (L&l) Division of lnsurance Services. This provision does not waive any of L&l's
rights to collect from the GRANTEE.
39. LAWS
The GRANTEE shall comply with all applicable laws, ordinances, codes, regulations and policies of
local and state and federal governments, as now or hereafter amended.
40. LICENSING. ACCREDITATION AND REGISTRATION
The GRANTEE shall comply with all applicable local, state, and federal licensing, accreditation and
registration requirements or standards necessary for the performance of this Grant Agreement.
18
41. LIMITATION OF AUTHORITY
Only the Authorized Representative or Authorized Representative's delegate by writing (delegation to
be made prior to action) shall have the express, implied, or apparent authority to alter, amend,
modify, or waive any clause or condition of this Grant Agreement. Furthermore, any alteration,
amendment, modification, or waiver or any clause or condition of this Grant Agreement is not
effective or binding unless made in writing and signed by the Authorized Representative.
42. NONCOMPLIANCE WITH NONDISCRIMINATION LAWS
During the performance of this Grant, the GRANTEE shall comply with allfederal, state, and local
nondiscrimination laws, regulations and policies. ln the event of the GRANTEE's non-compliance or
refusal to comply with any nondiscrimination law, regulation or policy, this Grant may be rescinded,
canceled or terminated in whole or in part, and the GRANTEE may be declared ineligible for further
Grants with COMMERCE. The GRANTEE shall, however, be given a reasonable time in which to
cure this noncompliance. Any dispute may be resolved in accordance with the "Disputes" procedure
set forth herein.
43. PAY EQUITY
The GRANTEE agrees to ensure that "similarly employed" individuals in its workforce are
compensated as equals, consistent with the following:a. Employees are "similarly employed" if the individuals work for the same employer, the
performance of the job requires comparable skill, effort, and responsibility, and the jobs are
performed under similar working conditions. Job titles alone are not determinative of whether
employees are similarly employed;b. GRANTEE may allow differentials in compensation for its workers if the differentials are based in
good faith and on any of the following:
(i) A seniority system; a merit system; a system that measures earnings by quantity or quality
of production; a bona fide job-related factor or factors; or a bona fide regional difference in
compensation levels.
(ii) A bona fide job-related factor or factors may include, but not be limited to, education,
training, or experience that is: Consistent with business necessity; not based on or derived
from a gender-based differential; and accounts for the entire differential.
(iii) A bona fide regional difference in compensation level must be: Consistent with business
necessity; not based on or derived from a gender-based differential; and account for the
entire differential.
This Grant Agreement may be terminated by COMMERCE, if COMMERCE or the Department of
Enterprise services determines that the GRANTEE is not in compliance with this provision.
44. POLITICAL ACTIVITIES
Political activity of GRANTEE employees and officers are limited by the State Campaign Finances
and Lobbying provisions of Chapter 42.17a RCW and the Federal Hatch Act, 5 USC 1501 - 1508.
No funds may be used for working for or against ballot measures or for or against the candidacy of
any person for public office.
45. PUBLICITY
The GRANTEE agrees not to publish or use any advertising or publicity materials in which the state of
Washington or COMMERCE's name is mentioned, or language used from which the connection with
the state of Washington's or COMMERCE's name may reasonably be inferred or implied, without the
prior written consent of COMMERCE.
46. RECAPTURE
ln the event that the GRANTEE fails to perform this Grant in accordance with state laws, federal laws,
and/or the provisions of this Grant, COMMERCE reserves the right to recapture funds in an amount
to compensate COMMERCE for the noncompliance in addition to any other remedies available at law
or in equity.
19
Repayment by the GRANTEE of funds under this recapture provision shall occur within the time
period specified by COMMERCE. ln the alternative, COMMERCE may recapture such funds from
payments due under this Grant.
47. RECORDS MAINTENANCE
The GRANTEE shall maintain books, records, documents, data and other evidence relating to this
Grant and performance of the services described herein, including but not limited to accounting
procedures and practices that sufficiently and properly reflect all direct and indirect costs of any
nature expended in the performance of this Grant.
GRANTEE shall retain such records for a period of six years following the date of final payment. At
no additional cost, these records, including materials generated under the Grant, shall be subject at
all reasonable times to inspection, review or audit by COMMERCE, personnel duly authorized by
COMMERCE, the Office of the State Auditor, and federal and state officials so authorized by law,
regulation or agreement.
lf any litigation, claim or audit is started before the expiration of the six (6) year period, the records
shall be retained until all litigation, claims, or audit findings involving the records have been resolved.
48. REGISTRATION WITH DEPARTMENT OF REVENUE
lf required by law, the GRANTEE shall complete registration with the Washington State Department
of Revenue.
49. RIGHT OF INSPECTION
The GRANTEE shall provide right of access to its facilities to COMMERCE, or any of its officers, or to
any other authorized agent or official of the state of Washington or the federal government, at all
reasonable times, in order to monitor and evaluate performance, compliance, and/or quality assurance
under this Grant.
50. SAVINGS
ln the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way
after the effective date of this Grant and prior to normal completion, COMMERCE may terminate the
Grant under the "Termination for Convenience" clause, without the ten calendar day notice
requirement. ln lieu of termination, the Grant may be amended to reflect the new funding limitations
and conditions.
51. SEVERABILITY
The provisions of this Grant are intended to be severable. lf any term or provision is illegal or invalid
for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of
the Grant.
52. SITE SECURITY
While on COMMERCE premises, GRANTEE, its agents, employees, or subcontractors shall conform
in all respects with physical, fire or other security policies or regulations.
53. SUBGRANTING/SUBCONTRACTING
Neither the GRANTEE nor any subgrantee/subcontractor shall enter into subgrants/subcontracts for
any of the work contemplated under this Grant Agreement without obtaining prior written approval of
COMMERCE. ln no event shall the existence of the subgranUsubcontract operate to release or reduce
the liability of the GRANTEE to COMMERCE for any breach in the performance of the GRANTEE's
duties. This clause does not include Grants of employment between the GRANTEE and personnel
assigned to work under this Grant.
20
Additionally, the GRANTEE is responsible for ensuring that all terms, conditions, assurances and
certifications set forth in this agreement are carried forward to any subgrants/subcontracts. GRANTEE
and its subgrantees/subcontractors agree not to release, divulge, publish, transfer, sell or otherwise
make known to unauthorized persons personal information without the express written consent of
COMMERCE or as provided by law.
54. SURVIVAL
The terms, conditions, and warranties contained in this Grant that by their sense and context are
intended to survive the completion of the performance, cancellation or termination of this Grant shall
so survive.
55. TAXES
All payments accrued on account of payroll taxes, unemployment contributions, the GRANTEE's
income or gross receipts, any other taxes, insurance or expenses for the GRANTEE or its staff shall
be the sole responsibility of the GRANTEE.
56. TERMINATION FOR CAUSE
ln the event COMMERCE determines the GRANTEE has failed to comply with the conditions of this
Grant in a timely manner, COMMERCE has the right to suspend or terminate this Grant. Before
suspending or terminating the Grant, COMMERCE shall notify the GRANTEE in writing of the need to
take corrective action. lf corrective action is not taken within 30 calendar days, the Grant may be
term inated or suspended.
ln the event of termination or suspension, the GRANTEE shall be liable for damages as authorized by
law including, but not limited to, any cost difference between the original Grant and the replacement
or cover Grant and all administrative costs directly related to the replacement Grant, e.9., cost of the
competitive bidding, mailing, advertising and staff time.
COMMERCE reserves the right to suspend all or part of the Grant, withhold further payments, or
prohibit the GRANTEE from incurring additional obligations of funds during investigation of the
alleged compliance breach and pending corrective action by the GRANTEE or a decision by
COMMERCE to terminate the Grant. A termination shall be deemed a "Termination for Convenience"
if it is determined that the GRANTEE: (1) was not in default; or (2) failure to perform was outside of
his or her control, fault or negligence.
The rights and remedies of COMMERCE provided in this Grant are not exclusive and are, in addition
to any other rights and remedies, provided by law.
57. TERMINATION FOR CONVENIENCE
Except as otherwise provided in this Grant, COMMERCE may, by ten (10) business days written
notice, beginning on the second day after the mailing, terminate this Grant, in whole or in part. lf this
Grant is so terminated, COMMERCE shall be liable only for payment required under the terms of this
Grant for services rendered or goods delivered prior to the effective date of termination.
58. TERMINATION PROCEDURES
Upon termination of this Grant, COMMERCE, in addition to any other rights provided in this Grant,
may require the GRANTEE to deliver to COMMERCE any property specifically produced or acquired
for the performance of such part of this Grant as has been terminated. The provisions of the
"Treatment of Assets" clause shall apply in such property transfer.
COMMERCE shall pay to the GRANTEE the agreed upon price, if separately stated, for completed
work and services accepted by COMMERCE, and the amount agreed upon by the GRANTEE and
COMMERCE for (i) completed work and services for which no separate price is stated, (ii) partially
completed work and services, (iii) other property or services that are accepted by COMMERCE, and
(iv) the protection and preservation of property, unless the termination is for default, in which case the
AUTHORIZED REPRESENTATIVE shall determine the extent of the liability of COMMERCE. Failure
to agree with such determination shall be a dispute within the meaning of the "Disputes" clause of this
21
Grant. COMMERCE may withhold from any amounts due the GRANTEE such sum as the
AUTHORIZED REPRESENTATIVE determines to be necessary to protect COMMERCE against
potential loss or liability.
The rights and remedies of COMMERCE provided in this section shall not be exclusive and are in
addition to any other rights and remedies provided by law or under this Grant Agreement.
After receipt of a notice of termination, and except as otherwise directed by the AUTHORIZED
REPRESENTATIVE, the GRANTEE shall:
1. Stop work under the Grant on the date, and to the extent specified, in the notice;
2. Place no further orders or subgrants/subcontracts for materials, services, or facilities except as
may be necessary for completion of such portion of the work under the Grant that is not terminated;
3. Assign to COMMERCE, in the manner, at the times, and to the extent directed by the
AUTHORIZED REPRESENTATIVE, all of the rights, title, and interest of the GRANTEE under the
orders and subgrants/subcontracts so terminated, in which case COMMERCE has the right, at its
discretion, to settle or pay any or all claims arising out of the termination of such orders and
subgrants/su bcontracts;
4. Settle all outstanding liabilities and all claims arising out of such termination of orders and
subcontracts, with the approval or ratification of the AUTHORIZED REPRESENTATIVE to the
extent AUTHORIZED REPRESENTATIVE may require, which approval or ratification shall be final
for all the purposes of this clause;
5. Transfer title to COMMERCE and deliver in the manner, at the times, and to the extent directed by
the AUTHORIZED REPRESENTATIVE any property which, if the Grant had been completed,
would have been required to be furnished to COMMERCE;
6. Complete performance of such part of the work as shall not have been terminated by the
AUTHORIZED REPRESENTATIVE; and7. Take such action as may be necessary, or as the AUTHORIZED REPRESENTATIVE may direct,
for the protection and preservation of the property related to this Grant, which is in the possession
of the GRANTEE and in which COMMERCE has or may acquire an interest.
59. TREATMENTOFASSETS
Title to all property furnished by COMMERCE shall remain in COMMERCE. Title to all property
furnished by the GRANTEE, for the cost of which the GRANTEE is entitled to be reimbursed as a direct
item of cost under this Grant, shall pass to and vest in COMMERCE upon delivery of such property by
the GRANTEE. Title to other property, the cost of which is reimbursable to the GRANTEE under this
Grant, shall pass to and vest in COMMERCE upon (i) issuance for use of such property in the
performance of this Grant, or (ii) commencement of use of such property in the performance of this
Grant, or (iii) reimbursement of the cost thereof by COMMERCE in whole or in part, whichever first
occurs.
A. Any property of COMMERCE furnished to the GRANTEE shall, unless otherwise provided herein
or approved by COMMERCE, be used only for the performance of this Grant.
B. The GRANTEE shall be responsible for any loss or damage to property of COMMERCE that results
from the negligence of the GRANTEE or which results from the failure on the part of the GRANTEE
to maintain and administer that property in accordance with sound management practices.
C. lf any COMMERCE property is lost, destroyed or damaged, the GRANTEE shall immediately notify
COMMERCE and shall take all reasonable steps to protect the property from further damage.
D. The GRANTEE shall surrender to COMMERCE all property of COMMERCE prior to settlement
upon completion, termination or cancellation of this Grant
All reference to the GRANTEE under this clause shall also include GRANTEE'S employees,
agents or subgrantees/subcontractors.
60. WAIVER
Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or
breach. Any waiver shall not be construed to be a modification of the terms of this Grant unless
stated to be such in writing and signed by Authorized Representative of COMMERCE.
22
ATTACHMENT A - SCOPE OF WORK
Funds awarded under this grant will be used for capital expenditures related to the complete rebuild and
upgrade of the McCormick Woods Sanitary Sewer Lift Station #2, located at 3011 SW Old Clifton Road,
Port Orchard, WA 98367. Costs may include, but are not limited to, demolition and new construction.
This project began in May 2018, and is expected to be substantially complete by October 2020.
All project work completed with prior legislative approval. The "Copyright Provisions", Section 32 of the
General Terms and Conditions, are not intended to apply to any architectural and engineering design
work funded by this grant.
CERTIFICATION PERFORMANCE MEASURE
The GRANTEE, by its signature, certifies that the declaration set forth above has been reviewed and
approved by the GRANTEE's governing body as of the date and year written below.
GRANTEE
TITLE
DATE
24
Tvoe of Fundina AmountSource Description
Washinqton State Department of Commerce
Grant #1
Grant 0.$784
$
Grant #2 $
Total Other Grants $0.00
ATTACHMENT B - CERTIFICATION OF THE AVAILABILITY OF FUNDS TO
COMPLETE THE PROJBCT
Other Grants
Loans
Other Local Revenue
$3,448,500.00
500.00
Other Funds
Source #1
Source #2
Total Project Funding $4,232,500.00
CERTIFICATION PERFORMANCE MEASU RE
The GRANTEE, by its signature, certifies that project funding from sources other than those provided by
this Grant Agreement and identified above has been reviewed and approved by the GRANTEE's
governing body or board of directors, as applicable, and has either been expended for eligible Project
expenses, or is committed in writing and available and will remain committed and available solely and
specifically for carrying out the purposes of this Project as described in elsewhere in this Grant
Agreement, as of the date and year written below. The GRANTEE shall maintain records sufficient to
evidence that it has expended or has access to the funds needed to complete the Project, and shall make
such records available for COMMERCE's review upon reasonable request.
GRANTEE
TITLE
$
$
Loan #1
Loan#2
Total Loans
Source #1 City of Port Orchard
$0.00
Total Local Revenue
$
$
Total Other Funds $0.00
DATE
26
ATTACHMENT C- CERTIFICATION OF THE PAYMENT AND REPORTING OF
PREVAILING WAGES
CERTIFICATION PERFORMANCE MEASURE
The GRANTEE, by its signature, certifies that all contractors and subcontractors performing work on the
Project shall comply with prevailing wage laws set forth in Chapter 39.12 RCW, as applicable to the
Project funded by this Grant Agreement, including but not limited to the filing of the "Statement of lntent to
Pay Prevailing Wages" and "Affidavit of Wages Paid" as required by RCW 39.12.040. The GRANTEE
shall maintain records sufficient to evidence compliance with Chapter 39.12 RCW, and shall make such
records available for COMMERCE's review upon request.
lf any state funds are used by the GRANTEE for the purpose of construction, applicable State Prevailing
Wages must be paid.
The GRANTEE, by its signature, certifies that the declaration set forth above has been reviewed and
approved by the GRANTEE's governing body as of the date and year written below.
GRANTEE
TITLE
DATE
28
ATTACHMENT D - CERTIFICATION OF INTENT TO ENTER THE LEADERSHIP IN
ENERGY AND ENVIRONMENTAL DESIGN (LEED) CERTIFICATION PROCESS
CERTIFICATION PERFORMANCE MEASURE
The GRANTEE, by its signature, certifies that it will enter into the Leadership in Energy and
Environmental Design certification process, as stipulated in RCW 39.35D, as applicable to the Project
funded by this Grant Agreement. The GRANTEE shall, upon receipt of LEED certification by the United
States Green Building Council, provide documentation of such certification to COMMERCE.
The GRANTEE, by its signature, certifies that the declaration set forth above has been reviewed and
approved by the GRANTEE's governing body or board of directors, as applicable, as of the date and year
written below.
EXEMPT: DO NOT SIGN
GRANTEE
TITLE
DATE
30