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procedures, progress, problems and scheduling. The City representative shall have the right to <br /> attend all such meetings and to have full access to the construction site to obtain information <br /> about the progress of the work on the Project. The District shall cause minutes of such meetings <br /> to be prepared and distributed to the participants and to the City. If the District determines that <br /> the Project is not proceeding in all material respects in accordance with the Design/Build <br /> Construction Contract, the District shall give notice in writing to the Contractor and the City <br /> specifying the particular deficiency or omission. The District shall establish communication <br /> procedures between the District and Contractor. <br /> 5.2 Quality Assurance. The District shall establish and implement a program to <br /> monitor the quality of the construction. The purpose of the program shall be to assist in guarding <br /> against defects and deficiency in the work of Contractor on the Project. The District shall reject <br /> work and transmit to the Contractor a notice of nonconforming work when it is the opinion of the <br /> District that the work does not conform to the requirements of the Design/Build Construction <br /> Contract. <br /> 5.3 Reports. The District shall prepare and provide to the City monthly progress <br /> reports that compare actual progress with scheduled progress for the construction of the Project. <br /> These reports shall specify actual Project progress and construction costs compared to the Project <br /> Schedule and the construction component of the Project Budget. The District shall periodically <br /> prepare change order reports during the construction phase. These reports shall list all approved <br /> change orders by number, a brief description of the change order work, associated costs, and the <br /> percent of completion of change order work. The District shall assure that a regular log <br /> containing a record of the weather, progress on the Project, number of workers, types of <br /> equipment, problems encountered and other similar relevant data is maintained. At the <br /> conclusion of the Project, the District shall prepare a final Project financial close-out report. <br /> 5.4 Project Schedule. Except for the issuance of up to $5,700,000 of Tax <br /> Revenue Notes to repay certain initial financing of preliminary Project costs as described in <br /> Section 4.1, prior to the issuance of any Notes under the commercial paper program, the District <br /> and the City shall mutually agree upon a firm Project schedule (the "Project Schedule"), which <br /> shall be attached to this Agreement as Exhibit B and incorporated herein. The District will use <br /> its best efforts to ensure that construction of the Regional Center begins on or before the date that <br /> RCW 82.14.390 requires construction of the Regional Center to commence in order for the <br /> District to levy and collect the sales and use taxes authorized by that statute, i.e., before January <br /> 1, 2003. The District also will use its best efforts to ensure that construction of the Regional <br /> Center is completed and available for occupancy at the start of the 2003-2004 hockey season. <br /> The District covenants to proceed with due diligence to complete and cause the completion of <br /> the Project in accordance with the Project Schedule but in no event (including Force Majeure) <br /> shall the time for completion of the Project extend beyond January 1, 2004. As used in this <br /> Agreement, "Force Majeure" means fire, earthquake, severe weather, or other acts of God, acts <br /> of public enemies, riot, insurrection, governmental regulation of the sale of materials and <br /> supplies or the transportation thereof, permitting delays caused by anyone other than the District, <br /> -8- <br /> INTERLOCAL FINANCING AGREEMENT <br /> 200203010680 <br />