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HomeMy WebLinkAbout2020/03/23 - Briefing Packet To limit the spread of COVID-19 within our community we are asking the public to limit attendance at gatherings including Commission meetings. Our Commission meetings are live streamed at http://masonwebtv.com/ and we will accept public comment via email — Mdrewryco.mason.wa.us; or mail to Commissioners Office, 411 North 5th Street, Shelton, WA 98584; or call 360-427-9670 ext. 419. We intend to limit our meetings to discuss and/or take action on only essential County business. BOARD OF MASON COUNTY COMMISSIONERS DRAFT BRIEFING MEETING AGENDA 411 North Fifth Street, Shelton WA 98584 Week of March 23, 2020 Monday, March 23, 2020 Commission Chambers 9:00 A.M. Executive Session — RCW 42.30.110 (1)(i) Potential Litigation 9:30 A.M. Support Services — Frank Pinter 9:45 A.M. Community Services — Dave Windom 10:00 A.M. Public Works — Loretta Swanson Utilities &Waste Management Commissioner Discussion — as needed Briefing Agendas are subject to change,please contact the Commissioners'office for the most recent version. Last printed 03/19/20 at 11:37 AM If special accommodations are needed,contact the Commissioners'office at ext.419,Shelton#360-427-9670;Belfair #275-4467,Elma#482-5269. MASON COUNTY COMMISSIONER BRIEFING INFORMATION FOR WEEK OF March 23, 2020 In the spirit of public information and inclusion, the attached is a draft of information for Commissioner consideration and discussion at the above briefing. This information is subject to change, additions and/or deletion and is not all inclusive of what will be presented to the Commissioners. Please see draft briefing agenda for schedule. Mason County Support Services Department Budget Management th Commissioner Administration ..: 411 North 5 Street Emergency Management Shelton, WA 98584 Facilities,Parks&Trails 360.427.9670 ext. 419 Human Resources Information Services x Labor Relations Risk Management MASON COUNTY COMMISSIONER BRIEFING ITEMS FROM SUPPORT SERVICES March 23, 2020 • Specific Items for Review o Consideration of Pandemic and Public Health Emergency Response and Recovery for County Employees— Frank o Employee authorization for Telework—Frank • Commissioner Discussion J:\DLZ\Briefing Items\2020\2020-03-23.docx • MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Frank Pinter DEPARTMENT: Support Services EXT: 530 BRIEFING DATE: 03/23/2020 PREVIOUS BRIEFING DATES: (If this is a follow-up briefing, please provide only new information) INTERNAL REVIEW(please check all that apply): 0 Budget/Finance ❑ Human Resources ❑ Legal ❑ Other— please explain ITEM: Approval of the following Support Services essential employees for teleworking: Frank Pinter, Diane Zoren, Melissa Drewry, Dawn Twiddy, Nichole Wilston, Ross McDowell, Tammi Wright, Todd Cannon, Ben Ramsfield, Kelly Frazier, Jennifer Beierle, Kelly Bergh, Becky Rogers, Meghan Andrews, and David Coughlin. EXECUTIVE SUMMARY: (If applicable, please include available options and potential solutions): Mason County Telework Resolution 2020-29, Program Policy and Procedures. Per the Policy, XXII 1(b), Application Procedure states, "In the event of an unusual weather condition, extreme circumstance, or other public health emergencies, an Elected Official may authorize critical employees to Telework without completing the forms and training as required in the policy." BUDGET IMPACT: NA PUBLIC OUTREACH:(Include any legal requirements, direct notice, website, • community meetings, etc.) RECOMMENDED OR REQUESTED ACTION: Approval of the following Support Services essential employees for teleworking: Frank Pinter, Diane Zoren, Melissa Drewry, Dawn Twiddy, Nichole Wilston, Ross McDowell, Tammi Wright, Todd Cannon, Ben Ramsfield, Kelly Frazier, Jennifer Beierle, Kelly Bergh, Becky Rogers, Meghan Andrews, and David Coughlin. ATTACHMENTS: Teleworking Essential Employee Authorization Form Briefing Summary 3/19/2020 _ (' ,r- =" .- Human Resources Budget Management f`` gift cS c®�' �� ,, Mason County Support Services Department commissioner Administration 1th Emergency Management (. _ 411 N 5 StreetFacilities,Parks&Trails � (, ` > Shelton, WA 98584 Human Resources . r) 360.427.9670 ext. 422 Information Services . 11414 A Labor Relations S J /, Risk Management . . Mason County Telework Authorized Essential Employees Per Mason County Resolution 2020-29,Telework Program Policy and Procedures. Policy,XXII 1(b),Application Procedure, "In the event of an unusual weather condition, extreme circumstance,or other public health emergencies, an Elected Official may authorize critical employees to Telework without completing the forms and training as required in the policy." Elected Official Office:Support Services The following employees are deemed as critical employees during the COVID-19 emergency: 1. Frank Pinter No specific time. • 2. Diane Zoren No specific time 3. Melissa Drewry No specific time 4. Dawn Twiddy No specific time 5. Nichole Wilston No specific time 6. Ross McDowell No specific time 7. Tammi Wright No specific time 8. Todd Cannon No specific time 9. Ben Ramsfield No specific time 10. Kelly Frazier No specific time 11. Jennifer Beierle No specific time 12. Kelly Bergh No specific time 13. Becky Rogers No specific time 14. Meghan Andrews No specific time 15. David Coughlin No specific time As the Elected Official, I understand that I am responsible for documenting the equipment each employee removes from the County office to ensure it is returned. I am also responsible for ensuring each Teleworker understands and knows they are responsible for protecting the confidentiality, integrity, and availability of data, information, and paper files used when Teleworking. A Teleworker must follow all applicable County,federal, state,and departmental policies, laws, and regulations to protect data accessed or maintained while Teleworking. Teleworkers are to protect information assets from unauthorized access and use by others, including family members, friends, and other visitors. Required to leave information assets only in secured locations and not in unattended or unlocked vehicles,or other locations where they may be easily stolen. Ensure that any County issued equipment,such as cell phones, hot spots,or computers passwords are protected from unauthorized access and use by the Teleworker's personal equipment(i.e.County issued hot spot hooked up to personal laptop or cellphone,etc...)or used by others, including family members,friends, and other visitors.Costs incurred by personal use shall be paid by the Teleworker. Elected Official Signature Date Memorandum of Understanding 'Between Shelton School District And Mason County Community Services-Public Health Concerning USE OF FACILITIES DURING PUBLIC HEALTH DISASTERS/EMERGENCIES 1. Purpose: This agreement is made and entered into between the Shelton School District in (Shelton, WA and Mason County) and Mason County Community Services - Public Health (hereafter MCCS-PH). This agreement will facilitate the provision of emergency/disaster services to individuals and families in the event of an emergency/disaster. The Superintendent or designee of the Shelton School District is authorized to permit MCCS-PH to use its facilities and desires to participate with MCCS-PH for emergency/disaster related purposes. 2. Agreement: The parties mutually desire to enter into this agreement for the purposes stated above. The parties agree: a) Upon the request of MCCS-PH, the District agrees that it will permit MCCS-PH to use its facilities without charge for all services reasonably related to emergency/disaster activities including but not limited to mass vaccinations, medication disbursal, alternative health care, etc. for victims of disaster/emergency, if practical. b) MCCS-PH agrees to exercise reasonable care in the conduct of its activities in the Districts' facilities and further agrees to assist with replacement or reimbursement to the District for any foods or supplies used by MCCS-PH in the conduct of its activities in these facilities. MCCS- PH will also restore the used premises to a condition reasonably like the condition prior to use by MCCS-PH. c) MCCS-PH agrees to provide cleaning services while occupying the facilities and a final cleaning following the use and vacating of the facilities. This applies to the areas within the used facility during the disaster/emergency. d) Notwithstanding any other agreements, MCCS-PH and the District agree to defend, hold harmless, and indemnify each other against any legal liability with respect to bodily injury, death, and property damage, arising from negligence or intentional acts of either party during the use of the property belonging to the District: It is understood and agreed that this agreement is for the sole benefit of the parties and gives no right to any other party. No joint venture or partnership is formed by this agreement. e) This agreement shall be valid for five (5) years from the signature date below, unless modified in writing by the parties. f) No portion of this contract may be assigned, delegated or subcontracted to any other individual, firm or entity without the express and prior written approval of the other party. g) Either party may request changes in the agreement. Any and all agreed modifications shall be in writing, signed by each of the parties, and effective on the latter date of execution by the respective parties. h) 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 or litigation shall be in the courts of the State of Washington in and for the County of Mason. This agreement shall be governed by the laws of the State of Washington. Except as stated herein, each party shall be responsible for its own attorneys' fees. i) To the extent applicable, both parties shall comply with any state and/or federal laws regarding privacy of medical information. Page 1 of 2 j) MCCS-PH or the District may terminate or suspend this agreement in whole or in part whenever MCCS-PH or the District determines that such termination or suspension is in the interests of either party. Termination or suspension of this agreement at any time during the term, whether for default or convenience, shall not constitute a breach of this agreement by MCCS-PH or the District. This agreement may be reactivated in whole or in part following suspension upon depositing written notice of reactivation to the District in the U.S. Mail, said reactivation becoming effective ten (10) days following mailing. k) If any term or condition of this agreement or the application thereof to any person(s) or circumstances is held invalid, such invalidity shall not affect other terms, conditions or applications which can be given effect without the invalid term, condition or application. To this end, the terms and conditions of this contract are declared severable. 1) Waiver of any breach or condition of this contract shall not be deemed a waiver of any prior or subsequent breach. No term or condition of this contract shall be held to be waived, modified or deleted except by instrument, in writing, signed by the parties hereto. m) This written agreement represents the entire agreement between the parties and supersedes any prior oral statements, discussions, or understandings between the parties. n) This agreement does not supersede any other agreements that the District may have with other organizations or partners. In witness whereof, the Superintendent of.Shelton School District and the Director of MCCS-PH have caused this agreement to be executed. This agreement is effective and operative upon the fixing of the last signature hereto. BOARD OF'COUNTY COMMISSIONERS MASON COUNTY Sharon Trask, Chair APPROVED AS TO FORM: Chief, Prosecuting Attorney Kevin Shutty, Commissioner Tim Whitehead Randy Neatherland, Commissioner SHELTON SCHOOL DISTRICT ATTEST: Clerk of the Board Superintendent School Representative Page 2 of 2 MASON COUNTY PUBLIC WORKS—COMMISSIONER BRIEFING MARCH 23,2020 Briefing Items • Grizzly grapple crane replacement for Public Works Solid Waste Division • Public Works Board Grant-Belfair Sewer Extension Discussion Items Commissioner Follow-Up Items Upcoming Calendar/Action Items Attendees: Commissioners: Public Works: Other Dept. Staff: Public: _Randy Neatherlin _Mike Collins _Kevin Shutty _Loretta Swanson _Sharon Trask _Richard Dickinson Others:(List below) MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Loretta Swanson, Director&Zach Foster Solid Waste Program Manager DEPARTMENT: Public Works EXT: 450 BRIEFING DATE: March 23, 2020 INTERNAL REVIEW (please check all that apply): ❑ Budget/Finance ❑ Human Resources ❑ Legal ❑ Other— please explain ITEM: Grizzly Replacement EXECUTIVE SUMMARY: Mason County utilizes a grapple crane, known as the Grizzly, at the Solid Waste Transfer Station to load the long-haul trailers with solid waste for disposal in Eastern Washington. This machine is an essential piece of equipment to the County's operation of this facility. Staff has been dealing with frequent failures since a rebuild in 2016. Recently, the main boom was found to be cracked in multiple locations. Public Work's staff have researched the following options for consideration. 1. Replace main boom only with remanufactured main boom ($15,500); requires crane and operator ($500.00/hour estimate 10 hours = $5,000.00); three Solid Waste Staff and one Mechanic (Estimate wages $2,400.00). Total estimated cost: $22,900.00. 2. Replace entire boom,jib and orbital grapple only with remanufactured set up ($58,818.29); requires crane and operator ($500.00/hour estimate 10 hours = $5,000.00; three Solid Waste Staff and one Mechanic (Estimate wage $2,400.00). Total estimated cost: $66,218.29. 3. Replace Grizzly with Excavator. Total estimated cost: $200,000— $250,000. Original purchase price with installation was approximately $130,000 in 2016. Since then installation annual maintenance costs have averaged nearly $20,000.00. Options 1 and 2 will be reduced by an unknown amount for the core charge of the replacement part depending on condition. BUDGET IMPACT: Not in current U&W Management budget. Cost of new excavator is estimated at $200,000 to $250,000. RECOMMENDED OR REQUESTED ACTION: Request the Board authorize Public Works to go out to bid and purchase a new excavator for the Solid Waste Division. MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Loretta Swanson, Director and Richard Dickinson, Deputy Director DEPARTMENT: Public Works EXT: 450 BRIEFING DATE: March 23, 2020 PREVIOUS BRIEFING DATES: February 10, 2020 INTERNAL REVIEW (please check all that apply): 4 Budget/Finance ❑ Human Resources ❑ Legal Other ITEM: PUBLIC WORKS BOARD LOAN — BELFAIR SEWER EXTENSION EXECUTIVE SUMMARY: Mason County received a loan offer from the Public Works Board on August 31, 2019 in the amount of $8,000,000 for the Belfair Sewer Extension Project. Commissioners were presented the Belfair Sewer Extension Pre-Design Report (Kennedy-Jenks) and an !updated Belfair Sewer System Financial Analysis (FCS Group) on February 11, 2020. Staff recommends accepting the full loan amount and implementing financial controls. BUDGET IMPACTS: The first loan payment is due one year from the date of contract execution and on a monthly basis. Interest at 0.79% begins accruing at the first loan draw based on the cumulative draw amount. The rate may be reduced if performance incentives are met per section 1.12. For example, if a certified project completion report is submitted within 48 months of contract execution the loan repayment period may be increased by 24 months OR interest rate reduced by 0.25%. Additionally, a request can be made to defer the first loan repayment until 60 months after loan execution under certain conditions. Upon project completion, a final agreement will be executed. Special terms and conditions that will be reviewed and revised, interest rate may be reduced or repayment term increased if incentives are met. Any unused funds will be de- obligated. PARTNER COORDINATION: Mason County and project partners City of Bremerton and Port of Bremerton met February 28, 2020 to review the pre-design report, affirm the preferred alternative, discuss project phasing and partner participation. City of Bremerton affirmed they have committed $1,000,000 towards sewer extension to PSIC. Briefing Summary f r f RECOMMENDED OR REQUESTED ACTION: 1. Recommend the Board authorize the Chair to sign the Public Works Board loan agreement in the amount of $8,000,000 for the Belfair Sewer Extension project. 2. Recommend implementing the following financial controls in 2020 to improve stability: a. Increase the Belfair 2020 sewer rate to $108.14 per ERU with a 3% annual increase thereafter. b. Ensure CFCs are set aside for future capital rather than debt service or operating expenses. c. Maintain reserves in 0.09 and REET funds to minimize economic cyclicality impacts and ability to repay loans. d. Produce quarterly financial reports noting any changes to the February 5, 2020 updated Belfair Sewer System Financial Analysis assumptions and including a report on number of new ERUs as compared to target growth of 28 ERUs per year. e. Continue partnership and financial agreement work with City of Bremerton and Port of Bremerton. ATTACHMENTS: 1. Public Works Board Loan Contract 2. February 5, 2020 Updated Belfair Sewer System Financial Analysis Briefing Summary CONTRACT FACE SHEET Contract Number: PC20-96103-157 PUBLIC WORKS BOARD CONSTRUCTION LOAN CONTRACT 1. Contractor 2. Contractor Doing Business As (optional) Mason County N/A 100 W Public Works Dr Shelton,WA 98584 3. Contractor Representative 4. Public Works Board Representative N/A N/A 5. Contract Amount 6. Funding Source 7. Contract Start 8. Contract End Date Date $8,000,000,.00 Federal: ❑ State: 0 Other: ❑ Contract Execution June 1, 2039 N/A: ❑ Date 9. Federal Funds (as applicable) Federal Agency CFDA Number N/A N/A N/A 10. Tax ID# 11. SWV# 12. UBI# 13. DUNS# 0001893-03 232-002-101 14. Contract Purpose Fund a project of a local government for the planning, acquisition, construction, repair, reconstruction, replacement, rehabilitation, or improvement of streets, roads, bridges, drinking water systems, stormwater systems, sanitary sewage systems, or solid waste facilities, including recycling facilities. The Board, defined as the Washington State Public Works Board and Contractor acknowledge and accept the terms of this Contract and attachments and have executed this Contract on the date below to start as of the date and year last written below. The rights and obligations of both parties to this Contract are governed by this Contract and the following other documents incorporated by reference: Contract Terms and Conditions including Declarations Page; and Attachment I: Attorney's Certification. FOR THE CONTRACTOR FOR PUBLIC WORKS BOARD Signature Scott Hutsell, Public Works Board Chair Print Name Date Title APPROVED AS TO FORM ONLY Date September 11, 2019 Sandra Adix Assistant Attorney General A t r tr 2 DECLARATIONS ........ _ �.», ._. _�.ar,.-s....._.-.c zs..s.+s«e-.v...... ...v.�i_v .1�:��i.._ .�-._..W....._.-r.h�....__..._..y......-...G nw,.,....-...,,...�.-._.....w..,__.. ...i.—_.,.we......s Legal Name: Mason County Loan Number: PC20-96103-057 Project Title: Belfa}e.Sewe--E tension Project City: Belfair. Project State: _Washington Project Zip Code: _ -98528 i> bAN INFORMATION } .�...�.,�.......a......... n_�....,.t:.0 .6 .,... C; f M� _..� .. r...0 Y._ ,....c...`�7...,3._,..ut.._.�. Loan Amount $8,000,000:00 Total Estimatedz Cost rw$12;600,00000 Total Estimated Funding ' ' _ $12,600,000..00 Y Loan Forgiveness°/a(ifi'applicatile) j Loan Term ._ _20' '., Interest:Rate - • 2- 0.79% Payment Month._ { J'�.: June 1st 1 Loan, Start Date August 2, 2019 Time of Performance 60 months from Execution Date;of this Contrac to Project A Completion. SPECIAL TERMS AND'CONDITIONS GOVERNING THIS LOAN AGREEMENT ' The contractor shall adopt a`rate increase of$87 to the base monthly rate per ERU or demonstrate there,has been an increase ERU(s)prior to project completion. This increase shall,be mamtamed,for the term of the loan, or until such time' he BOARD is satisfied with the CONTRACTOR's.fmances and notifies therCONT_RACTOR that this condition no longer`app�lies ` LOAN_SECURITY,CONDITION GOVERNING THIS LOAN AGREEMENT4 This loan is a revenue obligation-&--the CONTRACTOR..payable solely>frbrn"the,nef-"revenue of the sanitary sewer system. Payments shall;be made from the net revenue of:the utility after the payment of the principal and interest on any revenue bonds, notes, warrants or other obligations of the utility having a lien on that net revenue. As used here;:"net revenue.';means'gross revenue minus;:expen'ses of maintenance and operations. The BOARD grants the CONTRACTOR the rightaoy::'issue-future,bonds and notes that constitute a lien and charge on net revenue superior- to the lien and charge of this loan-agreement. . SCOPE OF WORK The project will construct two or three sewer'lift stations, gravityaewer, and pressure main extending from the Belfair Waste Reuse Facility (WRF)to the Puget Sound Industrial Center(PSIC) at Lake Flora Road. The project costs may include but are not limited to: engineering, cultural and historical resources, environmental documentation, review, permits, public involvement, easements, bid documents and construction. The project needs to meet all applicable Local, State, and/or Federal standards. 3 7 F,. 3 TABLE OF CONTENTS CONTRACT TERMS AND CONDITIONS................................................................................. 1 Part 1. SPECIAL TERMS AND CONDITIONS........................................................................ 1 1.1 Definitions ..................................................................................................................1 1.2 Authority .................................................................................................1 1.3 Purpose ... f 1.4 Order of Precetlence ...............................................1 1.5 5-year deferralfor start up systems ... .............................................2 1.6 Competitive Bidding Regwrements .... .. .? ......... ...................................2 1.7 Default m Repayment ....................2 1 8 Investment Gratle;Audit.: ' .... . .. ....................2 .;.- 1.9" Sub=Contractor Data Collection ... . r'..... : ..... .......................2 q 1.10 Eligible Proj c,Posts.....:... . . ....................2 'r1 11 Historical'and Cultural Resources c .... .... ....3 J 1.12 Performance Incentives .: ...: 3 1.13 Project Completion Amendment and Cert ified+Pro�ect CompletionReport ' \': . ....4 1 14 Project Signs : xr 4 V "1:1-5 Rate Loan`For iveness'antl Term of Loan` r ...... . t ..5 ' 116 Recapture,: g ................ .5 3 1.17 Reimbursement Procedures and Payment ............................................... .5 ` 1 1.18 Repayment .. ............................... ........ .. ... .6 b� a 1.19 Reports .................................... ' {a7 1.2.0 Termination for Cause...................................... ... .. .. j = t 1 .......................................................... a s x 1:21 Termination for,Convenience............................ .................................. :7 _ ? 1.22 Time of,Performance......................................... ` 7 1.23 Contract Suspension......................................... ........ . a . .'7 1=2.4 Special Conditions' ............................. ...... ......... ........ ' .8 1 25 Loan Security .......................... ' .......................... . .5.8 Part 2. GENERAL�TERMS"AND CONDITIONS.. r , 9 !2.1 DEFINITIONS .. ....... ...... .... ... ........ ..9 . 2:2 Allowable.Costs .. '. ....... ...9 .�. 2.3.: -ALL.WRITING9 CONTAINEDnHEREIN ..... :.:: .. 9 .. 2.4 AMENDMENTS::.... ................. ...... ...:: 4 .......9 2.5 AMERICANS WITH DISABILITIES-ACT(ADA)OF 1990, PUBLIC LAW.401-366, also ;:referred to as the"A'DA" 28 CFR Part 35 ...... :................................. .... ..................9 2:6 APPROVAL....... ..................... ........: ........ ..... .. ......... ......... .......... .............................9 , . 2:7.:. ASSIGNMENT.„:...... ......... ......... ......... ........................................................................... 10 2.8 :,ATTORNEYS' FEES :..::...... . ...... '.......... .. ...:.............. ................................................. 10 2.09 CODE REQUIREMENTS..... ................. EQUIREMENTS.:...::.: : :..:..:.: ....,.. .................. 10 2.10 CONFIDENTIALITY/SAFEGUARDING'OF INFORMATION...:......................................... 10 2.11 CONFORMANCE. . ......... ......... ......... .................... ................................................. 10 2.12 CONFLICT OF INTEREST........................ ............................... 11 ...................................... 2.13 COPYRIGHT.PROVISIONS.......................:...::................................................................. 11 2.14 DISALLOWED'COSTS................::.................... ......•......................................................... 11 2.15 DISPUTES...............::.::::::: .::::..::.:.:.:::........ .................................................................... 12 2.16 DUPLICATE PAYMENT..................................................................................................... 12 2.17 GOVERNING LAW AND VENUE...................................................:................................... 12 2.18 INDEMNIFICATION ............................................................................................................ 12 2.19 INDEPENDENT CAPACITY OF THE CONTRACTOR...................................................... 13 2.20 INDUSTRIAL INSURANCE COVERAGE........................................................................... 13 2.21 LAWS.................................................................................................................................. 13 2.22 LICENSING,ACCREDITATION AND REGISTRATION....................................................13 2.23 LIMITATION OF AUTHORITY............................................................................................ 13 2.24 Local Public Transportation Coordination ..................................................................... 13 2.25 NONCOMPLIANCE WITH NONDISCRIMINATION LAWS............................................... 13 2.26 PAY EQUITY....................................................................................................................... 13 2.27 POLITICAL ACTIVITIES..................................................................................................... 14 2.28 PREVAILING WAGE LAW................................................................................................. 14 2.29 PROHIBITION AGAINST PAYMENT,OF,BONUS OR COMMISSION.............................. 14 _,.:, 2.30 PUBLICITY........... s':: ::::.: .............................::.:::............................................................. 14 2.31 RECAPTURE...................................................................................................................... 14 2.32 RECORDS MAINTENANCE.::::: :.::: ::::::::: :.... ........................................................... 15 2.33 REGISTRATION WITH:DEP.ARTMENT OF:REVENUE..................................................... 15 r f,. 2.34 RIGHT OF INSPECTION .. ....... z.. t15 .............................. 15 2.35 SAVINGS ::: :.. ......:: :...... 2.36; SEVERABILITY ::: 15 ........................... 2.37:> SUBCONTRACTING } ........ .:... .3... .......................................................... 2:38 SURVIVAL' ................................................ , 15 16 2:39 TAXES x ... .... ....... .. 16 2..40 TERMINATION FOR CAUSE f ' ................. 16 2.41 TERMINATION FOR CONVENIENCE :.. ` ' 2.42 ;TERMINATIOkPROCEDURES.::` ... F J 2:43 TREATMENT OF"ASSETS.:............................................................... 2:44 WAIVER............................. :...::..:::.:.' ' k . 17 ATTACHMENT-I:` ATTORNEY'S CERTIFICATION 189 x I �; CONTRACT TERMS AND CONDITIONS PUBLIC WORKS BOARD CONSTRUCTIO_NIOAN PROGRAM �r Part 1. SPECIAL TERMS AND CONDITIONS 1.1 Definitions As used throughout,th's Constructi n Loan-Contracfthd following termss all,k6e the meaning set forth below: A. "Contract"shall mean this ConstructionyLoan Contract ,3 r yj B ;Contractor shall mean4 the local government identified ,on the.Contract Face Sheet performing services) underwthis'Contract,an` who is a Party to"the Contract;;and shall:include all emplo:yeesiand agents,of_the Contractor: r ` j Aj r' y C The Board" shall mean,the Washington State Public Works Board created in °Revised Code-of Washmgton (RCW)43 155 o30, and who is a Party to the Contract jja 4b "Declarations "and 'Declared"shall refer to the project information loan`terms:and conditions as:`state'd on the'Declaratiomi Page of this Loan Contract, displayed within the contract in THIS'STYLE ifor easier j identification ' i ,Z.,1.2 Authority': Acting under the auth'onty of Chapter 43 155 RCW, the Board has awardetl th 'Contractor a Public;' orks Board construction loan for an approved public works project 1.3 Purpose , .. The Board':and the Contractor-have entered:into this Contractto;undertake a local.public works project that furthers the goals and objectives of theWashmgton State.Public'Works•Program. The project will be undertaken by`the Contractor and willmclude'the activities described in the SCOPE OF WORK shown on the Declarations page. The project must be`undertaken in accordance with the loan terms and conditions, and all applicable federal, state grid local-laws and ordinances;which by this reference are incorporated into this Contract as though-set forth fully herein 1.4 Order of Precedence - In the event of an inconsistency in this Contract;=the"inconsistency shall be resolved by giving precedence in the following order: A. Applicable federal and state of Washington statutes and regulations. B. Special Terms and Conditions including attachments. C. General Terms and Conditions. 1 1.5 5-year deferral for start-up systems If the project financed by this contract is to develop a system to deliver previously unavailable services, and revenue from those services is to repay the loan, the new system is eligible for a deferral of loan payments for sixty(60) months after the Contract execution date. The Contractor may provide a written request to the Board requesting a 5-year deferral for an eligible system. The Board may approve the deferral request. Interest accrues for the aforementioned.sixty(60.);months:,The-.accrued interest only payment is due June 1 of the 6th year of the loan term. Interest and principal payments'are due on June 1 of the 7th year of the loan term. 1.6 Competitive Bidding Reguiremenfs The Contractor shall'comply with the provisions of RCW 43.155060 regarding competitive bidding requirements for'projects assisted:in whole-or in'gait with money from-the Public Works..Program. 1.7 Default in Repayment Loan.repayments shall be made on the-loan'in accordance with.SectionIA 8"of this Contract to payment not received within thirty.(30)days..of he due date shall be declared delinquent.'Del inquent;payments:shall be assessed_a.monthly:penalty beginning onthe,f st(.1st)day`past the-due.date. The penalty will be assessed on the entire payment amount; Tie:penalty:will be`one percent'(1%)'per month orytwelve'percent (12%)per annum .;The same perialty terms shall apply of project corripletionAf the repayment:of loan funds in excess-of eligible`costs-are not repaid at the time of the Project Completion'Amendment'is submitted,'as provided for in Section 1.13. = The Contractor acknowledges and.agrees to the Board's right, upon delinquency m the.payment of any annual installment,'to notify any other entity, creditors, or potential creditors of,the Contractor of such 'delinquency' ' I J The Contractor shall be responsible-for,all legal fees incurred by_the Board in any action undertaken to enforce1ts rights under this.section. 1.8 ;?Investment Grade Audit f; For p.,oiects.involving repair, replacemerit,,or improvement of a vJastewater treatment plant, or other public works facility for which an investment grade audit is'-obtainable,:Contractor must undertake'an investment grade audit. Costs incurred as part of the investment grade audit are eligible-project costs. 1.9 Sub-Contractor Data Collection Contractor will submit reports, in a form and format to be provided by the Board and at intervals as agreed by the parties, regarding work under this Contract performed by subcontractors and the portion of the Contract funds expended for work performed by sub-contractors, 'including but not necessarily limited to minority-owned, women-owned, and veteran-owned business sub-contractors. "Sub-Contractors" shall mean sub-contractors of any tier. 1.10 Eligible Project Costs The Eligible project costs must consist of expenditures eligible under Washington Administrative Code (WAC)399-30-030 and be related only to project activities described in declared SCOPE OF WORK. 2 Eligible costs for reimbursement shall be construed to mean expenditures incurred and paid, or incurred and payable within thirty(30)days of the reimbursement request. Only costs that have been incurred on or after LOAN REIMBURSEMENT START DATE shown in the Declarations are eligible for reimbursement under this Contract. Eligible costs will be paid according to an approved budget up to the maximum amount stated on the Contract Award or Amendment Face Sheet. The Contractor assures compliance with WAC 399-30-030,which identifies eligible costs for projects assisted with Public Works Board loans t - W_ These terms supersede the terms in Section.;2 2 TAIlowable,:Costs. 1.11 Historical and Cultural=Resources Prior to commencing construction,Contractor shall.complete the requirements sof Governor's Executive Order 05-05,,or as.-an alternative to„completion of,Governor s:Executive Ord&'05,-05`C` ontractor shall complete Section 106'of the National Historic Preservation Act, as applicable Contractor agrees that the Contractori`s legally and financially responsible fo°r compliance with all laws, regulations, and.agreements related;to thepreservation of.historical or cultural resources and'agrees to hold`harmless the:Board and the State of Washington n relationnto any claim related-to such historical or,cultural fdsources discovered, disturbed or damaged as a result ofahe protect funded by;this Contract' ' a In addition to the requirements set foith m this Contract, Confractor shall'm accordance with Governor's,, l Executive Order 05 05, coordinate with the Washington StatebPartnt f eology andHistoic Preservation DAHP ';'mcludin an recommended consultation with an affected: ride s durir ro'ect ) 9 Y Y; O 9 p 1,. j designiand prior to construction to determine the existence of any,trrbal cultural resources affected byjthe 'proposed project funded byithis Contract. Contractor agrees to avoid). immize or mitigate impacts to 5; :cultural resource as a continuing pre-requisite to receipt of funds under this Contract G y t The Contractor agrees that, unless¢the Contractor is proceeding under an approved historical and�cultural 7 i.monitdrind:01an oe other memorandum of agreement, if historical;or culturaLresources are discovered during consfruction`'the Contractorshall immediately stop work and notify tfie local historical preservation officer ;I and theistaWs historic preservation officer at DAHP. If human remains:are uncovered, the Contractor shall report th'e presence and>location of,the remains to the coroner,and local enforcement edi immately then r contact DAHP and the concerned tribe s cultural staff or committee a r _ ti L y The Contractor shall require this provision to be contained m all suti contracts fo'r work`or services related to the declared SCOPE OF WORK ' In addition to the requirements set forth;in this{Contract Contractor agrees to comply with RCW 27.44.040 regarding Indian 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 Section 106 of the IVationel Historic Preservation'Act shall substitute for completion of Governor's Executive.Order 05705. In the event that the Contractor finds it necessary to amend SCOPE O WORK, the Contractor may be required to re-comply with Governor's Executive-Order.05-05 or Section 106 of the National Historic Preservation Act. 1.12 Performance Incentives The Contractor shall complete the project no later than sixty(60)months after the date of contract execution. 3 Should the Contractor shall submit the Certified Project Completion Report within forty-eight(48)months of the date of contract execution, the Contractor may choose one of the two following incentives upon project completion: Option A: The repayment period will be increased by twenty-four(24) months, not to exceed the life of the asset, OR: Option B: The interest rate will be decreased by one-quarter of one percent(0.25%). Should the Contractor shall submit the'Certified Project Completion Report within thirty-six(36)months of the date of contract execution, the Contractor may choose one of the following two incentives upon project completion: _ Option C: The repayment period willte-increase_d_b sixty'(60)rmonths, not to exceed the life of the asset, OR;`. - Option D: The�intare st rate will be decreasedby•up to one,'-half of'one percent(0.50%). Once an tion is selected op 'the Contract shall be modifethea`d to note ' te change and no further adjustment to'the Contract for Performance-Incenti'• ppropria ves.shall be`authorized Irrespective'of;the performance incentive cti`osen at no point in time-shall:the'minimum loan interest rete.be Iess;than,0.25% The calculation of interest rate and.term adjustmerits will apply to the remaining payments begnning'from the date the Protect Complet'on:report is certified:` 1.13._1i0roiect Completion Amendmentand Certified Project Completion'Report' The Contractor shall complete a Certified Project Completion Report when all activities identifietl in the SCOPE`OF WORK are complete The'�Board will supply the Contractor with the Ce'rtified,Prdject Completion Report'form which shall include 1 _. { A A certified statement that the project, as described in the declared JSCOPE OF WORKis completelandt 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. , C Certification thaYalI co As as'sociated:with the project have been incurred and have been accounted for. Costs are incd�red when goods.:and services are received and/or contract work is performed. t ,� - - .. D....A final voucher for`there maining'eHgible funds;:'... - E. Pictures of-Completed.Project 'f The Contractor will submit the Certified Project Completion Report together with'th Ie last Invoice Voucher for a sum not to exceed the balance of the'loan,amount:-The final Invoice Voucher:paymerit shall not occur prior to the completion of:all'project activities identified in the SCOPE OF-WORK and the Board's receipt and acceptance of the_Certified Project Completion Report.; . : The Project Completion Amendment shail.serve as an amendment to this Contract determining the final loan amount, local share, term, and interest rate.- 1.14 ate.1.14 Prosect Signs If the Contractor displays, during the.period covered by this Contract, signs or markers identifying those agencies participating financially in the approved project,the sign or marker must identify the Washington State Public Works Board as a participant in the project. 4 1.15 Rate Loan Forgiveness and Term of Loan The Board shall loan the Contractor a sum not to exceed the LOAN AMOUNT shown on the Contract Face Sheet and declared on the Contract Declarations Page. The interest rate shall be the declared INTEREST RATE per annum on the outstanding principal balance. The amount of loan forgiveness (if applicable)shall be as stated on the attached Declarations Page, and identified therein as LOAN FORGIVENESS%. The length of the loan shall not exceed the,.declared^LOAN TERMin,years, with the final payment due by the CONTRACT END DATE as shown on'the Contract Face Sheet--" The loan forgiveness shall be applied at project completion antl shall apply to the lesser of the loan amount or the actual eligible costs and thaYdeclared percent on'°any accrued interest. The percent of loan forgiveness and interest rate;shall not be changed regardless ofjthe actual costzof the project and the Affordability Index at project completion ' 1.16 Recapture ; z i The right of recapture;under Section 2.31. Recapture shall exist for a:penod not to exceed siX(6)years following contract termination In thb,:eventthat the"Board:is required to,in'dtute legal proceeding77 s to enforce the recapture provision, the`Board"shall be entitled to its costs thereof, including attorneys fees. ,1.17 4Reimbursement Procedures and Payment If,funding or appropriation is:'notravajlakile at the time the invoice is subm tied, orwhen this contract is, executed, the issuance of.warrants will be delayed or suspendedeuntil such time`as funds or':appropriation? ' b'ecome available Therefore subject to the availability of funds, warrants shall be issued to the Contract r ,N ,for reimbursement of,allow'6' a expenses incurred by the Contractor while"undertaking and;administering ' ;.approved project activities m accordance with the declared SCOPE OF'WORI< =# 3 The Board shall reimburse the'Contractorfor eligible project expenditures up to the maximum loan amount under this contract, as 1. identified,in Section 1.10. When requesting reimbdrsement for costs incurred,:the i Contractor shall submit a'signed and completed Invoice Voucher(Form A19), referencing the SCOPE�OF' WOR IE projecfactivity performed and any appropriate.documentation such as�bills,anvoices -and receipts. The Invoice Voucher'must lie certified by an official of the:Contractor with authority to bind the; ontracto'r. Requests forreimbursements for costs related to construction activities.will not be accepted until the'`/ Contractor provides • Proof of compliance with Governor` Executive`Order 05-05 or Section 106 of the National Historic Preservation Act, as described;in Section-1.1,1;,and • Signed:Public Works Board Notice of Contract Award and Notice to Proceed,:which follows the formal award of a construction contract.>. The Contractor shall submit all Invoice Vouchers",and all required documentation to: Public Works Board Attn: (Program Specialist) PO Box 42525 Olympia,WA 98504-2525 The Board will pay the Contractor upon acceptance of the work performed and receipt of properly completed invoices. Invoices shall be submitted to the Board not more often than monthly. 5 Payment shall be considered timely if made by the Board within thirty(30)calendar days after receipt of properly completed invoices. Payment shall be sent to the address designated by the Contractor. The Board may, at its sole discretion,terminate the contract or withhold payments claimed by the Contractor for services rendered if the Contractor fails to satisfactorily comply with any term or condition of this contract. No payments in advance or in anticipation:of'services or'suppl,ies to be provided under this contract shall be made by the Board. . BOARD shall not release the final five(5) percenCof the total grantamount until acceptance by BOARD of project completion report Duplication of Billed Costs.ilf the Contractoris entitled to,payment or.-.hp- 's been,or'will,be paid by another source for an_eligible..project cost,then the-Contractor shall not be reimbursed"by the Board for that cost. Disallowed Costs.The Contractor.is responsible for any audit exceptions or disallowed costs.incurred by its own organization'or that of its.subcontractors. In no event shall the total Public Works loan exceed 100%of the eligible actual'project"costs. At the time of project completion, the.Contractorshall submit to the Board a ProjectCompletion Amendment cerfifying_,the total actual project costs and local.share. The final'Public Works.loan:disbursement shall,brin.g;the#otal loan to the Lesser of 100%of the eligible.project costs or the total declared LOAN AMOUNT;The Project Completion Amendment shall serve as`an amendment to this Contract determining the final}loan amount '', local share, and interest rate z i 'In the even!that the final costs identified in the Project Completion Amendment indicate that the Contractor has received"Public:.Works.Board monies in excess of 100.00% of eligible costs, all fuiids.ir excess of 100 00%shall be Public Works Board by payment to the, epartm'erit of Commerce ;or its ;successor;together wit submission of the Project Completion Amendment. 1.18 Repayment Loan repayment instal Iments'are due on-:the.day and month identified`under the term: PAYMENT MONTH on the Declarations Page.:Payments'_ rm due each yearduring the"terrr •of the,Ioan beginning'one.year from the date of contract:execution. Interest only will be charged;forthis p'ayment if a.warrart is issued prior to this' date. All subsequent payments shall consist of principal and accrued interest due'_on the specified PAYMENT MONTH,'date of each year during the remaining term of_the loan:,: Repayment of the loan.under this Contract shall include the declared INTEREST RATE per'annum based on a three hundred and sixty(360)day year of twelve (12)thirty(30);day months. Anterest will begin to accrue from the date each warrant is issued to the Contractor. The final payment shall be on'or before the CONTRACT END DATE shown on the Declarations page, of an amount sufficient to bring the loan balance to zero. In the event that the Board approves the Contractor's request for a deferral as outlined in Section 1.5, then the first loan repayment is due sixty(60) months after contract execution. Interest accrues for the sixty(60) months after contract execution. The accrued interest only will be charged for this payment if a warrant is issued prior to this date. Interest and principal payments are due on the declared PAYMENT MONTH date of each year during the remaining term of the loan. The Contractor has the right to repay the unpaid balance of the loan in full at any time or make accelerated payments without penalty. 6 The Contractor will repay the loan in accordance with the preceding conditions through the use of a check, money order, or equivalent means made payable to the Washington State Department of Commerce, or its successor. 1.19 Reports The Contractor shall furnish the Board with: A. Project Status Reports with each Invoice Voucher; B. Project Quarterly Reports(if no funds been reiinbursed,in the quarter)and/or Quarterly Expenditures Report; , �... C. Quarterly Projection Invoice Reports D. Certified Project Completion Repor{at pro�ectcompletion(as descn.bed m Section 1.13); E. Pictures of various sta'g'es of the,'project and , F.Other reports as the Board may require V`Y 1.20 Termination for Cause '� t If the,_Contractor fails>to com:ply with;the terms of this Contract, or.fails#o`use the loan<p(oceeds only for those activities identified m the SCOPE OFIW014 the Board may terminate the Contract R whole or`in part at any time The Board shall notify the Contractorin writing of it'sdetermination to terminate,;the reason for such termination, and the effective date of the termination: A` thii math s sectionnshall affect'the } Con tractor's;obligation to repay the unpaid'balance of the loan f ; `A i Thes' terms supersede the terms h' Section 2.40 Termination for Cause N 3 i ; 1.21 Termination for Conveniencei4l j Y The Board may terminate this'contract in the event that state funds are no',longer available'to the'Board o -are not appropriated for the purpose of meeting the Board's oblig'ations;under this contract. Termination will be effective when the Board'sends,wntten notice of termination to the Contractor. Nothing in this�section ;` shall affect ttie Gonfractor s,'obligation to'repay the unpaid balance of the,loan ' These°terms supersede tj terms m Section 2 41 Termination for Convenience f 1.22 Time of:Performance 4 .f, - '•fit ' u No later han sixty(60) monthsafter the date of contract execution the Contractor must reach`project completion;-_ r Failure to meet Time of Performance shall.constitute default of this contract In the event of extenuating circumstances the Contractor may request, in writing;that the Board extend the deadline for project completion. The Board may extend the,deadline - > The term of this contract shall be:for the entire term of the loan, regardless of actual project completion, unless terminated sooner as provided herein 1.23 Contract Suspension - In the event that the Washington State Legislature fails to pass and the Governor does not authorize a Capital Budget by June 30 of each biennium, the Washington State Constitution Article 8 and RCW 43.88.130 and RCW 43.88.290 prohibit expenditures or commitments of state funds in the absence of appropriation. 7 In such event, all work under this contract will be suspended effective July 1. The Contractor shall immediately suspend work under this contract and take all reasonable steps necessary to minimize the cost of performance directly attributable to such suspension until the suspension is cancelled. THE BOARD shall notify the Contractor immediately upon lifting of the contract suspension. 1.24 Special Conditions If SPECIAL CONDITIONS are listed on the Contract Declarations Page then these conditions are herein incorporated as part of the terms and requirements ofthis contract. 1.25 Loan Security Y Loan Security payments shall be made as stated on the.attache'd Declarations Page, and identified therein as LOAN SECURITYa, 2 r� { + a 8 Part 2. GENERAL TERMS AND CONDITIONS 2.1 DEFINITIONS As used throughout this Contract, the following terms shall have the meaning set forth below: A. "Authorized Representative shall. mean' the '-Public;Works Board Chair and/or the designee authorized in writing to acton the Chair's behalf. B. "COMMERCE"shall mean h#pepartment of Commerce C. "Contractor" shall mean th'e;entity identified on'the"face sheet .performing service(s) under this Contract and shall arielude all employees andagents of,the Contractor•,, D. BOARD, shall imgan the �Washngton'State,Public Works, Board .created in Revised Code of Washington(RCW),'43 155^030, and,whichis a Party to theContract E. "Personal Information' shall meaninformation identifiable to anyperson 'including, but not limited to;`rinformation that;r�elates to a person's name.,;health, finances;education<xbusiness;use or receipt of governmental services,\or other activities„ addresses 'telephone numbers, social security ' numbers;driver hcenselnurribers,-other identifying numbers and any financial identifiers4 F. State shall mean the state of Washrngton ' n G. "Subcontractor” shall mean one not.m tti`e employment of the Contractor who is performing all or partof those,sservices and this-Contract under a separate contract 66 with thetntractgr The terms 2' "subcontractor' and°subcontractors" mean subcontractor(s),m any ier. < 5 J ' 22 Allowable Costs' 3 I { `i a J 3 Costsiallowable under this ConJp tract are actual expenditures according to anapproved�budget,upto tl.e i :'•maximum amount stated on fhe Contract Award or Amendment Face Sheet " 4,2.3; ALL'.WRITINGS.CONTAINED''HEREIN t' This Contract contains all the terms antl conditions agreed upon by the parties: No other undersfandings, ora,or otherwise, regarding the subject matter of this Contract shall be deemed to exist or to bind any of the ., parties hereto. 2.4 AMENDMENTS rr This Contract may amendedby mutual agreement of the parties Such amendments shall not be binding unless theyare in writing and signed bylpersonnel authorized to E ind each .4he parties 2.5 AMERICANS WITH DISABILITIES`ACT'(ADA) OF 1990,'PUBLIC LAW 101=336, also referred to as the"ADA" 28 CFR Parf'35 The Contractor must comply with-the,ADm A, which provides comprehensive civil rights protection to individuals with disabilities`in the areas of employment�:publi-c accommodations, state and local government services, and telecommunications' ' 2.6 APPROVAL This contract shall be subject to the written approval of the Board's Authorized Representative and shall not be binding until so approved. The contract may be altered, amended, or waived only by a written amendment executed by both parties. 9 2.7 ASSIGNMENT Neither this Contract, nor any claim arising under this Contract, shall be transferred or assigned by the Contractor without prior written consent of the Board. 2.8 ATTORNEYS' FEES 3 ^ Unless expressly permitted under another provision of the Contract, in the event of litigation or other action brought to enforce Contract terms..each party agrees to bear4its;ownattorney's fees and costs. 2.09 CODE REQUIREMENTS ` _ x All construction and-rehabilitation projects'must satisfy the requirements of applicable local, state, and federal building mechanicaF, plumbng fire, energy and-barner=free codes Compliance with the Americans with Disabilities Act,of 1990 28 C.F.R. Parf 35"will be required `as specified by,the local building Department j i 2.10 CONFIDENTIALITY/SAFEGUARDING-OF INFORMATION r 4� NIZ7 A y'Confidential ma as used m this sectio { n includesa s x j '1 All material provided to the Contractor by the Board that is designated as"confidential" by�the Board-2 All material prod ucetl y,the C.dntractor that is designatedas'confidential; by the,Board ;and ' { 3 ,All personal information in theYpossession of the Contractor that may not be_!disclosed undeI'llr,state orl federal law "Personal,information" includes but is not limited to information related to;a person's. :name ;health finances;,education, business, use of governm6nt',s6rvices,,,addresses, telephone, , ;J numbers, social security number, driver's license number and other identifying numbers, and 'x Protected Health Information .under the federal Health Insurance Portability and'Accountability.Rct of 1996(H,I.PAA) _ �� j 8i TheContractor shall comply with all state and federal;laws related 61heuse, sharing transfer, sale,,or diS1 losure of Confidential Information The Contractor shall use Confdential'Information solely for the purposes of,this Contract and shall not use, share, transfer, sell o 'disclose any Confidentjal Information to any third party excepYwith the prior written consent;:of the.Board;oras may be require-_by law:The Contractor shall take all necessary steps to assure that Confidential Information is=safeguarded to prevent unauthorized use, sharing transfer,sale or disclosure of Confidential Information or violation of any state oiled I laws related thereto Upon request the Contractor shall-'provide the,Board with its policies;and procedures orf confidentiality;. The.Board'may require.changes to'such policies and procedures as they apply to this Contract whenever the Board reasonably'determines that changes are necessaryto,prevent''unauthorized disclosures: The Contractor shall make'the changes within the time period specified,by the Board., Upon request; the Contractor�shall immediatelyrreturn to the Board any Confidential Information that the'-'Board' tlefermmes has not been adequately protected by the Contractor against.,unauthorized disclosure. C. Unauthorized Use Disclosure. The Contractor shall notify the Board within five (5)working days of any unauthorized use or disclosure of any confidential inform ation,:and shall take necessary steps to mitigate the harmful effects of such use or disclosure.. . 2.11 CONFORMANCE If any provision of this contract violates any statute or rule of law of the state of Washington, it is considered modified to conform to that statute or rule of law. 10