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each party's own negligence. Each Party agrees that its obligations under this <br />subparagraph include, but are not limited to, any claim, demand, and /or cause of action <br />brought by, or on behalf of, any of its employees or agents. For this reason, each of the <br />Parties, by mutual negotiation, hereby waives, with respect to the other Party only, any <br />immunity that would otherwise be available against such claims under the Industrial <br />Insurance provisions of Title 51 RCW. <br />Further, the District shall defend, indemnify and hold the City, its officers, officials, <br />employees and agents harmless from any and claims brought by the Contractor relating <br />to the District Work, including but not limited to project delay claims, subject to the <br />provisions of Section 3 herein. <br />7. AUDITS AND INSPECTIONS <br />The records and documents with respect to all matters covered by this Agreement shall <br />be subject to inspection, review or audit by the City or the District at the requesting <br />Party's sole expense during the term of this Agreement and three (3) years after <br />expiration or termination. Such records shall be made available for inspection during <br />regular business hours within a reasonable time of the request. <br />8. JOINT BOARD /SEPARATE LEGAL ENTITY <br />It is not intended that a separate legal entity be established to conduct this cooperative <br />undertaking. The City shall act as administrator of this Agreement. <br />9. FINANCE AND BUDGET <br />No special budget or funds are anticipated, nor shall any be created. The Parties are <br />each responsible for their own finances in connection with this Agreement, and nothing <br />in this Agreement shall be deemed or construed otherwise. <br />10. PROPERTY ACQUISITION HOLDING, AND DISPOSAL <br />Following final payment by the District and final acceptance of the Project by the City, <br />the sewer system improvements as depicted on Exhibit A shall become the property of <br />the District. Upon final acceptance of the Project, the City shall transfer and assign any <br />rights it may have under the Project contract relating to the District work to the District, <br />including any warranty and maintenance obligations by the Contractor relating to the <br />District work. The District's acceptance of the District work shall not constitute <br />acceptance of any unauthorized or defective work or materials, nor a waiver of any <br />manufacturer's, supplier's or contractor's warranties. The City shall also provide redline <br />drawings of the District work to the District upon completion of the Project work, such <br />redline drawings to be prepared at the District's expense. The District shall retain any <br />rights, claims or demands the District may have against the Contractor relating to the <br />District work under applicable statutes of limitation as a third party beneficiary under the <br />City's contract with the Contractor. <br />11. DURATION: TERMINATION <br />This Agreement shall be effective immediately after execution by both Parties, and shall <br />W: \PW Eng \PROJECTS\A- RW & RS Projects \42nd Ave S Phase III (99410303 94 -RS03) \Design \COT - Valley View - Interlocal Agreement 42nd Ave <br />S Final.docx <br />-5- <br />