Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
CAG2021-323 - Original - Integra Washington, Inc. - 277th Bridge Easements - 07/12/2021
ApprovalOriginator:Department: Date Sent:Date Required: Authorized to Sign: Director or Designee Date of Council Approval: Grant? Yes No Type:Review/Signatures/RoutingComments: Date Routed to the City Clerk’s Office:Agreement InformationVendor Name:Category: Vendor Number:Sub-Category: Project Name: Project Details: Agreement Amount: Start Date: Basis for Selection of Contractor: Termination Date: Local Business? Yes No* Business License Verification: Yes In-Process Exempt (KCC 5.01.045) If meets requirements per KCC 3.70.100, please complete “Vendor Purchase-Local Exceptions” form on Cityspace. Notice required prior to disclosure? Yes No Contract Number: Agreement Routing Form For Approvals, Signatures and Records Management This form combines & replaces the Request for Mayor’s Signature and Contract Cover Sheet forms. Visit Documents.KentWA.gov to obtain copies of all agreementsadccW22373_1_20 Budget Account Number: Budget? Yes No Dir Asst: Sup/Mgr: Dir/Dep: rev. 20210513 FOR CITY OF KENT OFFICIAL USE ONLY (Optional) * Memo to Mayor must be attached CAG2021-323 Original PROFESSIONAL SERVICES AGREEMENT - 1 ($20,000 or Less) PROFESSIONAL SERVICES AGREEMENT between the City of Kent and Integra Washington, Inc. THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and Integra Washington, Inc. organized under the laws of the State of Washington, located and doing business at 600 University Street, Suite 310, Seattle, WA 98101, Phone: (206) 436-1177, Contact: Lori Safer (hereinafter the "Contractor"). I. DESCRIPTION OF WORK. The Contractor shall perform the following services for the City: The Contractor shall provide appraisal services fo the 277th Bridge Easements. For a description, see the Scope of Work which is attached as Exhibit A and incorporated by this reference. The Contractor further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement, and the Contractor shall complete the work within 45 days. III. COMPENSATION. The City shall pay the Contractor a total amount not to exceed Seven Thousand, Two Hundred Fifty Dollars ($7,250) for the services described in this Agreement. The Contractor shall invoice the City monthly based on time and materials incurred during the preceding month. The hourly rates charged for the Contractor’s services shall be as delineated in the attached and incorporated Exhibit A. All hourly rates charged shall remain locked at the negotiated rates throughout the term of this Agreement. Card Payment Program. The Contractor may elect to participate in automated credit card payments provided for by the City and its financial institution. This Program is provided as an alternative to payment by check and is available for the convenience of the Contractor. If the Contractor voluntarily participates in this Program, the Contractor will be solely responsible for any fees imposed by financial institutions or credit card companies. The Contractor shall not charge those fees back to the City. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor- Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: A. The Contractor has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. B. The Contractor maintains and pays for its own place of business from which the Contractor’s services under this Agreement will be performed. C. The Contractor has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained the Contractor’s services, or the Contractor is engaged in an independently PROFESSIONAL SERVICES AGREEMENT - 2 ($20,000 or Less) established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Contractor is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. E. The Contractor has registered its business and established an account with the state Department of Revenue and other state agencies as may be required by the Contractor’s business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Contractor maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party seven (7) calendar days written notice at its address set forth on the signature block of this Agreement. VI. FORCE MAJEURE. Neither party shall be liable to the other for breach due to delay or failure in performance resulting from acts of God, acts of war or of the public enemy, riots, pandemic, fire, flood, or other natural disaster or acts of government (“force majeure event”). Performance that is prevented or delayed due to a force majeure event shall not result in liability to the delayed party. Both parties represent to the other that at the time of signing this Agreement, they are able to perform as required and their performance will not be prevented, hindered, or delayed by the current COVID-19 pandemic, any existing state or national declarations of emergency, or any current social distancing restrictions or personal protective equipment requirements that may be required under federal, state, or local law in response to the current pandemic. If any future performance is prevented or delayed by a force majeure event, the party whose performance is prevented or delayed shall promptly notify the other party of the existence and nature of the force majeure event causing the prevention or delay in performance. Any excuse from liability shall be effective only to the extent and duration of the force majeure event causing the prevention or delay in performance and, provided, that the party prevented or delayed has not caused such event to occur and continues to use diligent, good faith efforts to avoid the effects of such event and to perform the obligation. Notwithstanding other provisions of this section, the Contractor shall not be entitled to, and the City shall not be liable for, the payment of any part of the contract price during a force majeure event, or any costs, losses, expenses, damages, or delay costs incurred by the Contractor due to a force majeure event. Performance that is more costly due to a force majeure event is not included within the scope of this Force Majeure provision. If a force majeure event occurs, the City may direct the Contractor to restart any work or performance that may have ceased, to change the work, or to take other action to secure the work or the project site during the force majeure event. The cost to restart, change, or secure the work or project site arising from a direction by the City under this clause will be dealt with as a change order, except to the extent that the loss or damage has been caused or exacerbated by the failure of the Contractor to fulfill its obligations under this Agreement. Except as expressly contemplated by this section, all other costs will be borne by the Contractor. VII. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Contractor, its subcontractors, or any person acting on behalf of the Contractor or subcontractor shall not discriminate against any person who is qualified and available to perform the work to which the employment relates as provided for by the City of Kent’s Equal Employment Opportunity Policy. The Contractor shall execute the attached City of Kent Equal PROFESSIONAL SERVICES AGREEMENT - 3 ($20,000 or Less) Employment Opportunity Policy Declaration, Comply with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement. VIII. INDEMNIFICATION. The Contractor shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Contractor's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of the Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification. The provisions of this section shall survive the expiration or termination of this Agreement. In the event the Contractor refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Contractor’s part, then the Contractor shall pay all the City’s costs for defense, including all reasonable expert witness fees and reasonable attorneys’ fees, plus the City’s legal costs and fees incurred because there was a wrongful refusal on the Contractor’s part. IX. INSURANCE. The Contractor shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit B attached and incorporated by this reference. X. CONTRACTOR’S WORK AND RISK. The Contractor agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to the Contractor’s business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those services. All work shall be done at the Contractor's own risk, and the Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. XI. MISCELLANEOUS PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties’ performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VIII of this Agreement. D. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. PROFESSIONAL SERVICES AGREEMENT - 4 ($20,000 or Less) E. Assignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and the Contractor. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. Should any language in any of the exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Public Records Act. The Contractor acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington and documents, notes, emails, and other records prepared or gathered by the Contractor in its performance of this Agreement may be subject to public review and disclosure, even if those records are not produced to or possessed by the City of Kent. As such, the Contractor agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act. I. City Business License Required. Prior to commencing the tasks described in Section I, the Contractor agrees to provide proof of a current city of Kent business license pursuant to Chapter 5.01 of the Kent City Code. i. gounlerparqs-and SlqnalqreS--by*fax-Cl"..Emiril. This Agreement may be executed in any number of counterpatts, each of which shall constitute an original, and all of which vvill together constitute this one Agreement, Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person. II{ WITNESS, the parties below execute this AgreerurelTt, whictr shall become effective onthe last date entered belerur'. All acts consistent with the ar.ltftronilty of this Agreement and prlon to its effective date are rmtified and affirnn,ed, and tfre terms of til'le Agreernent shall be cleemedto have applied. NOTICES TO BH SEF$T TO: CITV OF KENT: Chad Bieren, P.E. City of Kent 220 Fourth Avenue South Kent, WA 98032 (253) 856-5500 (telephone) (2s3) 856-6500 (facsimile) PROFESSIONAL SERVICES AGREEMENT - 5 ($20,0A0 or Less) By Pri Its ) Name DATE q EITY CIF KEIST: Z-tz;.By Print Name;Chad Bieren, P.E. Public Works DirectorIts: DATE NOTICES TO BE SENT TO: CONTIIACTOR: Lori Safer Integra Washington, Inc. 600 University Street, Suite 310 Seattle, WA 98101 QAq 436-L177 (telephone) (206) 623-5751 (facsimile) ATTES]: Kent City Clerk DECLARATION CITY OF KEN EQUAL EMPLOYMENT OPPORTUNITY POLICY The City of Kent is committed to conform to Federal and State laws regarding equal opportunity. As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City's equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, subcontractor or supplier on this specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outlines, it will be considered a breach of contract and it will be at the City's sole determination regarding suspension or termination for all or part of the Agreement; The questions are as follows: 1. 1 have read the attached City of Kent administrative policy number 1.2. 2, During the time of this Agreement I will not discriminate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3 During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 4 During the time of the Agreement 1, the prime contractor, will actively consider hiring and promotion of women and minorities. S. Before acceptance of this Agreement, an adherence statement will be signed by me, the Prime Contractor, that the Prime Contractor complied with the requirements as set forth above. By signing below, I agree to fulfill the five requirements referenced above. Dated _I +in, VDate: day of 2 0- A EEO COMPLIANCE DOCUMENTS - I EEO COMPLIANCE DOCUMENTS - 2 CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 CONTRACTORS APPROVED BY Jim White, Mayor POLICY: Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year, must take the following affirmative steps: 1. Provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. Any contractor, subcontractor, consultant or supplier who willfully disregards the City’s nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments. 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject to these regulations are familiar with the regulations and the City’s equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. EEO COMPLIANCE DOCUMENTS - 3 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the (date), between the firm I represent and the City of Kent. I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity Policy that was part of the before-mentioned Agreement. Dated this day of , 20___. By: ___________________________________________ For: __________________________________________ Title: _________________________________________ Date: _________________________________________ Fealy, Angella To: Cc: Sent: Subject: From:Lori Safer < lesafer@irr.com> Monday, June 21, 2021 2:17 PM Rolcik-Wilcox, Cheryl Martindale, Delores; Duran, Lizeth RE: New appraisal bid HiCheryl, Nice talking with you this morning. Our fee for this assignment is 57,250. While we will search for 1997 sales, it is likely that we will provide the 1997 value using sales and a trend back in time from the current date of value. We can deliver the report within 45 days of notification to proceed Have a great rest ofyour day, Lori E. Safer, MAl, AI-GRS Managing Director lntegra Realty Resources - Seattle 600 University Street, #310 Seattle, WA 98101- Direct: 2O6-436-LL77 Mobile: 206-919-5274 Fax:206-623-5731 Email : lesafer(oirr.com Website: www.irr.com Viewpoint: irr.com/viewpoint From: Rolcik-Wilcox, Cheryl <CRolcik-Wilcox@kentwa.gov> Sent: Monday, June 2I,2O2L 10:49 AM To: Lori Safer <lesafer@irr.com> Cc: Martindale, Delores <DMartindale@kentwa.gov>; Duran, Lizeth <LDuran@kentwa.gov> Subject: RE: New appraisal bid Hi Lori - I'm just checking in to see if you've been able to reach a bid amount for this one? Thanks for chatting with me about it a couple of weeks ago, and for looking at making a proposal for usl - Cheryl From: Rolcik-Wilcox, Cheryl Sent: Monday, June 7,2O2'J,1:02 PM 1 EXTERNAL EMAIL EXHIBIT A safer@irr.com artindale, Delores <DMartindale@kentwa.gov>; Duran, Lizeth <LDuran@kentwa.gov> ct: New appraisal bid )ri - City of Kent completed its 277th Street bridge project many, many years ago. As part of the lct, we were supposed to acquire a series of easements from King County, which never rened. My understanding is that were RCO restrictions on the property that King County led to transfer to a different parcel, and that process stagnated for many years. I think eone retired and handed this off, so the County is taking care of transferring the RCO 'ictions now, and has asked us to take care of the easements now as well. @ attached the legal description for the easements to this message and I'm hoping you can me a bid to appraise the easements. The County has asked the City to provide both current es and the value for when the project commenced, which was LII/1997. Is this something can provide a bid to us for? We would give notice to proceed immediately after a contract is -'d. Thanks Lori! 'yl Rolcik-Wilcox, Property & Acguisition Analyst Works Engineering rurth Avenue South, Kent, WA 98032 Line 253-856-5587* r-wilcox@KentWA.oov OF KENT, WASHINGTON itA.qov Facebook i', ::r YouTube i CONSIDER THE ENVIRONMENT BEFORE PRINTING THIS E-MAIL currently working from home. If you need to reach me immediately, please call my cell phone at (425)444-0190' 2 EXHIBIT B INSURANCE REQUIREMENTS FOR CONSULTANT SERVICES AGREEMENTS Insurance The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The City shall be named as an insured under the Consultant’s Commercial General Liability insurance policy with respect to the work performed for the City using ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability insurance appropriate to the Consultant’s profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $1,000,000 products-completed operations aggregate limit. EXHIBIT B (Continued) 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Consultant’s insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant’s insurance and shall not contribute with it. 2. The Consultant’s insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all required insurance policies. The Consultant’s Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer’s liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. F. Subcontractors Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Consultant. 02/17/2021 Conover Insurance 155 108th Avenue NE, Suite 725 P.O. Box 90007 Bellevue WA 98004 Cori Alexander (425) 455-5000 (425) 454-5550 coria@conoverinsurance.com INTEGRA WASHINGTON INC 600 UNIVERSITY ST STE 310 STE 310 SEATTLE WA 98101 Mutual of Enumclaw Insurance Company 14761 21-22 A Y BOP0001383 03/14/2021 03/14/2022 2,000,000 100,000 10,000 4,000,000 2,000,000 A BOP0001383 03/14/2021 03/14/2022 2,000,000 A UMC0000555 03/14/2021 03/14/2022 1,000,000 1,000,000 A BOP0001383 03/14/2021 03/14/2022 WA Stop Gap 2,000,000 2,000,000 2,000,000 City of Kent is an additional insured when required in a written contract. Policy Form include; #EB9901 1219 Businessowners Enhancement Endorsement with Blanket Additional Insured; #BP1488 0713 Primary and Noncontributory - Other Insurance Condition. City of Kent 220 Fourth Avenue South Kent WA 98032 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY CERTIFICATE OF LIABILITY INSU RANCE DATE (MM/DD/YYYY) 2t28t2020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER, THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. TH|S CERTTFTCATE OF INSURANCE DOES NOT CONSTTTUTE A CONTRACT BETWEEN THE TSSU|NG TNSURER(S), AUTHORTZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: lf the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. lf SUBROGATION lS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer riqhts to the certificate holder in lieu of such endorsement(s). PRODUCER Arthur J. Gallagher & Co lnsurance Broliers of CA. lnc LIC#07262gg 505 N. Brand Boulevard, Suite 600 Glendale CA 91203 com 8',t8-539-1247 81 :mt*.. LARealEstateCerts@aio.com INSURER{S} AFFORDING COVERAGE NAIC # rNsuRER a , Underwriters at Llovd's. London 11230 INSURED INTEREA-o3 lntegra Washin 600 University Seattle, WA 98 gton, lnc. Street #310 101 INSIJRER B : INSI,'RER C : INSURER D INSI,IRER E : INSIJRER F : COVERAGES CERTIFICATE N U MBER: 66007039 REV THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSRITR TYPE OF INSURANCE ADDL POLICY NIIMBFR POLICY EFF POLIGY EXP/MM/hhrywv\LIMITS EACH OCCURRENCE $ UAMASE IUKENItsU PRFMISFS rFe o.nilrranca\$ l/ED EXP (Anv one oerson)$ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG $ COMMERCIAL GENERAL LIABILITY GEN'L AGGREGATE LII,4IT APPLIES PER:f--] pno-I lJEcr I I CLAIMS.MADE OCCUR LOCPOLICY $ COMBINED SINGLE LIMIT BODILY INJURY (Per person)$ BODILY INJURY (Per accident)$ $ ANY AUTO OWNED AUTOS ONLY HIRED AUTOS ONLY SCHEDULED AUTOS NON-OWNED AUTOS ONLY AUTOMOBILE LIABILITY $ EACH OCCURRENCE $UMBRELLA LIAB EXCESS LIAB OCCUR CLAII\4S-MADE AGGREGATE $ DF T)RFTFNTION S $ PtKqTATI ITtr OIH. ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANYPROPRI ETOR/PARTNER/EXECUTIVE OFFICERYMEMBEREXCLUDED? (Mandatory ln NH) lf yes, describe under DESCRIPTION OF OPERATIONS belnw T N/A E.L. DISEASE - POLICY LIMIT $ E1106 & Omissions Errors & Omissions.E&O Dsductibls Reimburs€ment MPLl 531 1 99.20 MPLl s42399.20 PRFDR 46-APP20G.30692-201 311412020 311412020 311412020 3t14t2022 3t14t2022 3t14t2022 Each Claim Aggregats Limit EaClaim/Agg16gatB' $2,000,000 $1 0,000,000 $1 50,000 DEScRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 10'1, Additional Remarks Schsdule, may be attachod if more space is required) Location: 600 University Street, Ste 310, Seattle, WA 981 01 Evidence only..Policy is-subject to $25,000 Self lnsured Rentention/Deductible payable by local office. This certificate of insurance is not a policy of insurance and does not affirm:atively or negatively amend, extend or alter the coverage afforded by ihe policy to which the certificate of insrirance irakes'reference. CANCELLATION @ 1988-2015 ACORD CORPORATTON. Ail rights reserved. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVEREO IN ACCORDANCE WITH THE POLICY PROVISIONS.City of Kent 220 Fourth Avenue Kent WA 98032 USA WW ACORD 25 (2016/03) &RYHUHG3URSHUW\ 6LJQVDWWDFKHGWREXLOGLQJVDQGEXVLQHVVSHUVRQDOSURSHUW\ $GGLWLRQDO&RYHUDJHV /LPLWVRI,QVXUDQFH D'HEULV5HPRYDO E3UHVHUYDWLRQRI3URSHUW\GD\V F)LUH'HSDUWPHQW6HUYLFH&KDUJH G&ROODSVH 5HIHUWR3DJH H:DWHU'DPDJH2WKHU/LTXLGV3RZGHU2U0ROWHQ0DWHULDO'DPDJH 5HIHUWR3DJH I%XVLQHVV,QFRPH $FWXDO/RVV6XVWDLQHG J([WUD([SHQVH $FWXDO/RVV6XVWDLQHG K3ROOXWDQW&OHDQ8S$QG5HPRYDO L&LYLO$XWKRULW\ZHHNVKUGHGXFWLEOH M0RQH\2UGHUV$QG³&RXQWHUIHLW0RQH\´ N(PSOR\HH'LVKRQHVW\ O)RUJHU\2U$OWHUDWLRQ P2UGLQDQFH2U/DZ&RYHUDJH±%ODQNHW±&RYHUDJHVDQG Q%XVLQHVV,QFRPH)URP'HSHQGHQW3URSHUWLHV R*ODVV([SHQVHV 5HIHUWR3DJH S)LUH([WLQJXLVKHU6\VWHPV5HFKDUJH([SHQVH T(OHFWURQLF'DWD U,QWHUUXSWLRQ2I&RPSXWHU2SHUDWLRQV V/LPLWHG&RYHUDJH)RU³)XQJL´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±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±3URSHUW\RI WKH %XVLQHVVRZQHUV&RYHUDJH)RUP D%XLOGLQJV 6LJQVDWWDFKHGWREXLOGLQJV E%XVLQHVV3HUVRQDO3URSHUW\ 6LJQVDWWDFKHGWREXLOGLQJV 3DUDJUDSK $GGLWLRQDO &RYHUDJHV LQ 6HFWLRQ ,±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±&ROODSVH DSSOLHV RQO\WR DQ DEUXSW FROODSVH DV GHVFULEHG DQG OLPLWHG LQ 3DUDJUDSKV G WKURXJKG )RU WKH SXUSRVH RI WKLV $GGLWLRQDO &RYHUDJH ±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±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±&ROODSVH GRHV QRW DSSO\WR SHUVRQDO SURSHUW\WKDW KDV QRW DEUXSWO\IDOOHQ GRZQ RU FDYHG LQHYHQ LI WKH SHUVRQDO SURSHUW\VKRZV HYLGHQFH RI FUDFNLQJEXOJLQJVDJJLQJEHQGLQJ OHDQLQJVHWWOLQJVKULQNDJHRUH[SDQVLRQ 7KLV $GGLWLRQDO &RYHUDJH ±&ROODSVH ZLOO QRW LQFUHDVH WKH /LPLWV RI ,QVXUDQFH SUR YLGHGLQWKLVSROLF\ 7KH WHUP &RYHUHG &DXVH RI /RVV LQFOXGHV WKH $GGLWLRQDO &RYHUDJH ±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¶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±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³RSHUDWLRQV´ L $WWKHGHVFULEHGSUHPLVHV RU LL $W WKH UHSODFHPHQW SUHPLVHV RU DW WHPSRUDU\ORFDWLRQVLQFOXGLQJ UHORFDWLRQ H[SHQVHVDQG FRVWV WR HTXLS DQG RSHUDWH WKH UHSODFHPHQW RUWHPSRUDU\ORFDWLRQV E 7R PLQLPL]H WKH VXVSHQVLRQ RI EXVLQHVV LI \RX FDQQRW FRQWLQXH ³RSHUDWLRQV´ F 7R L 5HSDLURUUHSODFHDQ\SURSHUW\ RU LL 5HVHDUFKUHSODFH RU UHVWRUH WKH ORVW LQIRUPDWLRQ RQ GDPDJHG ³YDOXDEOHSDSHUVDQGUHFRUGV´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±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±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³PRQH\´ DQG ³VHFXULWLHV´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³PDQDJHUV´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±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±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±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±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³ILQH DUWV´DQG ³ILQH DUWV´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± 3URSHUW\LV GHOHWHG LQ LWV HQWLUHW\DQG UHSODFHG E\ WKHIROORZLQJ ,Q DGGLWLRQ WR WKH /LPLWV RI ,QVXUDQFH RI 6HFWLRQ ,± 3URSHUW\\RX PD\H[WHQG WKH LQVXUDQFH SURYLGHG E\WKLVSROLF\DVSURYLGHGEHORZ ([FHSW DV RWKHUZLVH SURYLGHGWKH IROORZLQJ ([WHQVLRQV DSSO\WR SURSHUW\ORFDWHG LQ RU RQ WKH EXLOGLQJ GHVFULEHG LQ WKH 'HFODUDWLRQV RU LQ WKH RSHQ RU LQ D YHKLFOH ZLWKLQ IHHW RI WKH GHVFULEHG SUHPLVHV D1HZO\$FTXLUHG2U&RQVWUXFWHG3URSHUW\ %XLOGLQJV ,I WKLV SROLF\FRYHUV %XLOGLQJV\RX PD\ H[WHQGWKDWLQVXUDQFHWRDSSO\WR D <RXU QHZ EXLOGLQJV ZKLOH EHLQJ EXLOW RQ WKHGHVFULEHGSUHPLVHV DQG E %XLOGLQJV \RX DFTXLUH DW SUHPLVHV RWKHU WKDQ WKH RQH GHVFULEHGLQWHQGHG IRU L 6LPLODU XVH DV WKH EXLOGLQJ GHVFULEHGLQWKH'HFODUDWLRQV RU LL 8VHDVDZDUHKRXVH 7KH PRVW ZH ZLOO SD\IRU ORVV RU GDPDJH XQGHU WKLV ([WHQVLRQ LV DW HDFK EXLOGLQJ %XVLQHVV3HUVRQDO3URSHUW\ ,I WKLV SROLF\FRYHUV %XVLQHVV 3HUVRQDO 3URSHUW\\RX PD\H[WHQG WKDW LQVXUDQFH WR DSSO\WR D %XVLQHVV 3HUVRQDO 3URSHUW\LQFOXGLQJ VXFK SURSHUW\WKDW \RX QHZO\DFTXLUH DW DQ\ORFDWLRQ\RXDFTXLUH RU E %XVLQHVV 3HUVRQDO 3URSHUW\LQFOXGLQJ VXFK SURSHUW\WKDW \RX QHZO\DFTXLUH ORFDWHG DW \RXU QHZO\FRQVWUXFWHG RU DFTXLUHG EXLOGLQJV DW WKH ORFDWLRQ GHVFULEHGLQWKH'HFODUDWLRQV RU 7KLV ([WHQVLRQ GRHV QRW DSSO\WR SHUVRQDO SURSHUW\WKDW \RX WHPSRUDULO\DFTXLUH LQ WKH FRXUVH RI LQVWDOOLQJ RU SHUIRUPLQJ ZRUN RQ VXFKSURSHUW\RU\RXUZKROHVDOHDFWLYLWLHV 7KH PRVW ZH ZLOO SD\IRU ORVV RU GDPDJH XQGHU WKLV ([WHQVLRQ LV DW HDFK EXLOGLQJ 3HULRG2I&RYHUDJH :LWK UHVSHFW WR LQVXUDQFH SURYLGHG XQGHU WKLV &RYHUDJH ([WHQVLRQ IRU 1HZO\ $FTXLUHG 2U &RQVWUXFWHG 3URSHUW\ FRYHUDJH ZLOO HQG ZKHQ DQ\RI WKH IROORZLQJ ILUVWRFFXUV D 7KLVSROLF\H[SLUHV E GD\V H[SLUH DIWHU \RX DFTXLUH WKH SURSHUW\RU EHJLQ FRQVWUXFWLRQ RI WKDW SDUW RI WKH EXLOGLQJ WKDW ZRXOG TXDOLI\DV &RYHUHG3URSHUW\ RU F <RXUHSRUWYDOXHVWRXV :H ZLOO FKDUJH \RX DGGLWLRQDO SUHPLXP IRU YDOXHV UHSRUWHG IURP WKH GDWH \RX DFTXLUH WKH SURSHUW\RU EHJLQ FRQVWUXFWLRQ RI WKDW SDUW RI WKH EXLOGLQJ WKDW ZRXOG TXDOLI\DV &RYHUHG3URSHUW\ E3HUVRQDO3URSHUW\2II3UHPLVHV <RX PD\H[WHQG WKH LQVXUDQFH WKDW DSSOLHV WR %XVLQHVV 3HUVRQDO 3URSHUW\WR DSSO\WR FRYHUHG %XVLQHVV 3HUVRQDO 3URSHUW\RWKHU WKDQ PRQH\DQG VHFXULWLHVDQG YDOXDEOH SDSHUV DQG UHFRUGVZKLOH LW LV LQ WKH FRXUVH RI WUDQVLW RU WHPSRUDULO\DZD\IURP WKH GHVFULEHG SUHPLVHV7KH PRVW ZH ZLOO SD\IRU ORVV RU GDPDJH XQGHU WKLV ([WHQVLRQ LV XQOHVV D KLJKHU OLPLW RI LQVXUDQFH LV VKRZQ LQ WKH'HFODUDWLRQV F2XWGRRU3URSHUW\ <RX PD\H[WHQG WKH LQVXUDQFH SURYLGHG E\WKLV SROLF\WR DSSO\WR \RXU RXWGRRU IHQFHVUDGLR DQG WHOHYLVLRQ DQWHQQDV LQFOXGLQJ VDWHOOLWH GLVKHV ODZQVWUHHVVKUXEV DQG SODQWV RWKHU WKDQ VWRFNRI WUHHVVKUXEV RU SODQWV RU WUHHV VKUXEV RU SODQWV ZKLFK DUH SDUW RI D YHJHWDWHG URRI LQFOXGLQJ GHEULV UHPRYDO H[SHQVH FDXVHG E\RU UHVXOWLQJ IURP DQ\RI WKH IROORZLQJ FDXVHV RIORVV )LUH /LJKWQLQJ ([SORVLRQ 5LRWRU&LYLO&RPPRWLRQ RU $LUFUDIW 7KH PRVW ZH ZLOO SD\IRU ORVV RU GDPDJH XQGHU WKLV ([WHQVLRQ LV EXW QRW PRUH WKDQ IRU DQ\RQH WUHHVKUXE RU SODQW7KHVH OLPLWV DSSO\WR DQ\RQH RFFXUUHQFHUHJDUGOHVV RI WKH W\SHV RU QXPEHU RI LWHPV ORVW RU GDPDJHGLQWKDWRFFXUUHQFH 6XEMHFW WR DOO DIRUHPHQWLRQHG WHUPV DQG OLPLWDWLRQV RI FRYHUDJHWKLV &RYHUDJH ([WHQVLRQ LQFOXGHV WKH H[SHQVH RI UHPRYLQJ IURP WKH GHVFULEHG SUHPLVHV WKH GHEULV RI WUHHV VKUXEV DQG SODQWV ZKLFK DUH WKH SURSHUW\RI RWKHUVH[FHSW LQ WKH VLWXDWLRQ LQ ZKLFK \RX DUH D WHQDQW DQG VXFK SURSHUW\LV RZQHG E\WKH ODQGORUGRIWKHGHVFULHGSUHPLVHV (% ,QFOXGHVFRS\ULJKWHGPDWHULDORI,QVXUDQFH6HUYLFHV2IILFH,QFZLWKLWVSHUPLVVLRQ 3DJHRI G3HUVRQDO(IIHFWVDQG3URSHUW\2I2WKHUV <RX PD\H[WHQG WKLV LQVXUDQFH WKDW DSSOLHV WR %XVLQHVV3HUVRQDO3URSHUW\WRDSSO\WR 3HUVRQDO HIIHFWVLQFOXGLQJ WRROVRZQHG E\ \RX\RXU RIILFHUV\RXU SDUWQHUV RU ³PHPEHUV´\RXU ³PDQDJHUV´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³YDOXDEOH SDSHUV DQG UHFRUGV´QRW DW WKH GHVFULEHG SUHPLVHVWKH PRVW ZH ZLOO SD\LV /RVV RU GDPDJH WR YDOXDEOH SDSHUV DQG UHFRUGVZLOO EH YDOXHG DW WKH FRVW RI UHVWRUDWLRQ RU UHSODFHPHQW RI WKH ORVW RU GDPDJHG LQIRUPDWLRQ7R WKH H[WHQW WKDW WKH FRQWHQWV RI WKH YDOXDEOH SDSHUV DQG UHFRUGVDUH QRW UHVWRUHGWKH YDOXDEOH SDSHUV DQG UHFRUGVZLOO EH YDOXHG DW WKH FRVW RI UHSODFHPHQW ZLWK EODQN PDWHULDOV RI VXEVWDQWLDOO\LGHQWLFDOW\SH 3DUDJUDSK %([FOXVLRQV LQ 6HFWLRQ ,±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± 3URSHUW\GRHV QRW DSSO\WR WKLV &RYHUDJH ([WHQVLRQH[FHSWIRU D 3DUDJUDSK %F*RYHUQPHQWDO $FWLRQ E 3DUDJUDSK %G1XFOHDU+D]DUG F 3DUDJUDSK %I:DU $QG 0LOLWDU\ $FWLRQ G 3DUDJUDSK %I'LVKRQHVW\ H 3DUDJUDSK %J)DOVH3UHWHQVH I 3DUDJUDSK % DQG (% ,QFOXGHVFRS\ULJKWHGPDWHULDORI,QVXUDQFH6HUYLFHV2IILFH,QFZLWKLWVSHUPLVVLRQ 3DJHRI J 3DUDJUDSK %$FFRXQWV 5HFHLYDEOH ([FOXVLRQ J'HWDFKHG6LJQV :H ZLOO SD\IRU GLUHFW SK\VLFDO ORVV RI RU GDPDJH WR DOO GHWDFKHG VLJQV DW WKH GHVFULEHGSUHPLVHV D 2ZQHGE\\RX RU E 2ZQHG E\RWKHUV EXW LQ \RXU FDUH FXVWRG\RUFRQWURO 3DUDJUDSK $&RYHUHG &DXVHV 2I /RVV DQG 3DUDJUDSK %([FOXVLRQV LQ 6HFWLRQ , ±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± 3URSHUW\LV GHOHWHG LQ LWV HQWLUHW\DQG UHSODFHG E\ WKHIROORZLQJ 7KH PRVW ZH ZLOO SD\IRU ORVV RU GDPDJH LQ DQ\ RQH RFFXUUHQFH LV WKH /LPLWV RI ,QVXUDQFH RI 6HFWLRQ ,±3URSHUW\VKRZQ LQ WKH 'HFODUDWLRQV RU WKH OLPLW VKRZQ LQ WKLV HQGRUVHPHQW ZKLFKHYHULVDSSOLFDEOH 7KH DPRXQWV RI LQVXUDQFH DSSOLFDEOH WR WKH &RYHUDJH ([WHQVLRQV DQG WKH IROORZLQJ $GGLWLRQDO &RYHUDJHV DSSO\LQ DFFRUGDQFH ZLWK WKH WHUPV RI VXFK FRYHUDJHV DQG DUH LQ DGGLWLRQ WR WKH /LPLWV RI ,QVXUDQFH RI 6HFWLRQ ,± 3URSHUW\ D)LUH'HSDUWPHQW6HUYLFH&KDUJH E3ROOXWDQW&OHDQXS$QG5HPRYDO F2UGLQDQFH2U/DZ G%XVLQHVV ,QFRPH )URP 'HSHQGHQW 3URSHUWLHV H(OHFWURQLF'DWD DQG I,QWHUUXSWLRQ2I&RPSXWHU2SHUDWLRQV %XLOGLQJ/LPLW±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· %XVLQHVV 3HUVRQDO 3URSHUW\/LPLW ± 6HDVRQDO ,QFUHDVH D6XEMHFW WR 3DUDJUDSK EWKH /LPLW RI ,QVXUDQFH IRU %XVLQHVV 3HUVRQDO 3URSHUW\ LV DXWRPDWLFDOO\LQFUHDVHGE\ 7KH %XVLQHVV 3HUVRQDO 3URSHUW\± 6HDVRQDO ,QFUHDVH SHUFHQWDJH VKRZQ LQ WKH'HFODUDWLRQV RU LI QR %XVLQHVV 3HUVRQDO 3URSHUW\ ±6HDVRQDO ,QFUHDVH SHUFHQWDJH LV VKRZQ LQWKH'HFODUDWLRQV WRSURYLGHIRUVHDVRQDOYDULDQFHV E7KH LQFUHDVH GHVFULEHG LQ 3DUDJUDSK D ZLOO DSSO\RQO\LI WKH /LPLW RI ,QVXUDQFH VKRZQ IRU %XVLQHVV 3HUVRQDO 3URSHUW\LQ WKH 'HFODUDWLRQV LV DW OHDVW RI \RXU DYHUDJH PRQWKO\YDOXHV GXULQJ WKH OHVVHU RI 7KH PRQWKV LPPHGLDWHO\SUHFHGLQJ WKHGDWHWKHORVVRUGDPDJHRFFXUV RU 7KH SHULRG RI WLPH \RX KDYH EHHQ LQ EXVLQHVV DV RI WKH GDWH WKH ORVV RU GDPDJHRFFXUV 3DUDJUDSK ''HGXFWLEOHV LQ 6HFWLRQ ,±3URSHUW\ LV GHOHWHG LQ LWV HQWLUHW\DQG UHSODFHG E\WKH IROORZLQJ :H ZLOO QRW SD\IRU ORVV RU GDPDJH LQ DQ\RQH RFFXUUHQFH XQWLO WKH DPRXQW RI ORVV RU GDPDJH H[FHHGV WKH 'HGXFWLEOH VKRZQ LQ WKH 'HFODUDWLRQV:H ZLOO WKHQ SD\WKH DPRXQW RI ORVV RU GDPDJH SHU ORFDWLRQ LQ H[FHVV RI WKH 'HGXFWLEOH XS WR WKH DSSOLFDEOH /LPLW RI ,QVXUDQFHRI6HFWLRQ,±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±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³$FWXDO &DVK 9DOXH %XLOGLQJV´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± 3URSHUW\LVGHOHWHGLQLWVHQWLUHW\ 27+(5 ,1685$1&( 81'(5 7+(6$0( 32/,&< ,I WKHUH LV RWKHU LQVXUDQFH XQGHU WKLV SROLF\FRYHULQJ WKH VDPH ORVV RU GDPDJHZH ZLOO SD\RQO\IRU WKH DPRXQW RI FRYHUHG ORVV RU GDPDJH LQ H[FHVV RI WKH VXPRI D7KH DPRXQW WKDW VXFK RWKHU LQVXUDQFH SDLG IRU WKHORVVRUGDPDJH DQG E7KH DPRXQW RI WKH GHGXFWLEOH DSSOLFDEOH WR WKH ORVVRUGDPDJHXQGHUWKHRWKHULQVXUDQFH +RZHYHUZH ZLOO QRW SD\PRUH WKDQ WKH DSSOLFDEOH /LPLWRI,QVXUDQFH 7KH IROORZLQJ LV DGGHG WR 3DUDJUDSK +3URSHUW\ 'HILQLWLRQV ³)LQH $UWV´PHDQV SDLQWLQJVHWFKLQJVSLFWXUHV WDSHVWULHVUDUH RU DUW JODVVDUW JODVV ZLQGRZV YDOXDEOH UXJVVWDWXDU\VFXOSWXUHV³DQWLTXH´ IXUQLWXUH³DQWLTXH´MHZHOU\EULFDEUDFSRUFHODLQV DQG VLPLODU SURSHUW\RI UDULW\KLVWRULFDO YDOXH RU DUWLVWLF PHULW³$QWLTXH´PHDQV DQ REMHFW KDYLQJ YDOXH EHFDXVH LWV FUDIWVPDQVKLS LV LQ WKH VW\OH RU IDVKLRQ RI IRUPHU WLPHV DQG LWV DJH LV \HDUV RU ROGHU $GGLWLRQDO,QVXUHG±%XLOGLQJ2ZQHU 7KHIROORZLQJLVDGGHGWR6HFWLRQ,±3URSHUW\ ,I \RX DUH D EXLOGLQJ RZQHU V \RX DUH DQ LQVXUHG EXW RQO\ZLWK UHVSHFW WR WKH FRYHUDJH SURYLGHG XQGHU WKLV 3ROLF\IRU GLUHFW SK\VLFDO ORVV RU GDPDJH WR WKH EXLOGLQJ V GHVFULEHG LQ WKH 'HFODUDWLRQV DQG RZQHG E\\RX$OO RWKHU SROLF\WHUPV DQG FRQGLWLRQV DSSO\ %ODQNHW$GGLWLRQDO,QVXUHG 7KHIROORZLQJFKDQJHVUHYLVH6HFWLRQ,,±/LDELOLW\ 3DUDJUDSK &:KR ,V $Q ,QVXUHG LV DPHQGHG WR LQFOXGHWKHIROORZLQJ %ODQNHW$GGLWLRQDO,QVXUHG D$Q\SHUVRQ RU RUJDQL]DWLRQ ZKHQ \RX DQG VXFK SHUVRQ RU RUJDQL]DWLRQ KDYH DJUHHG LQ ZULWLQJ LQ D FRQWUDFW RU DJUHHPHQW H[HFXWHG SULRU WR DQ\³RFFXUUHQFH´WKDW VXFK SHUVRQ RU RUJDQL]DWLRQ EH DGGHG DV DQ DGGLWLRQDO LQVXUHG RQ \RXU SROLF\6XFK SHUVRQ RU RUJDQL]DWLRQ LV DQ DGGLWLRQDO LQVXUHG RQO\ZLWK UHVSHFW WR OLDELOLW\IRU ³ERGLO\LQMXU\´³SURSHUW\GDPDJH´RU ³SHUVRQDO DQG DGYHUWLVLQJ LQMXU\´FDXVHGLQ ZKROHRULQSDUWE\ <RXUDFWVRURPLVVLRQ RU 7KH DFWV RU RPLVVLRQV RI WKRVH DFWLQJ RQ\RXUEHKDOI ,Q WKH SHUIRUPDQFH RI \RXU RQJRLQJ RSHUDWLRQV IRU WKH DGGLWLRQDO LQVXUHGRU LQ FRQQHFWLRQ ZLWK \RXU SUHPLVHV RZQHG E\RU UHQWHGWR\RX $SHUVRQ¶V RU RUJDQL]DWLRQ¶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±&RPPRQ 3ROLF\&RQGLWLRQV 3DUDJUDSK +2WKHU ,QVXUDQFH LV DPHQGHG WR DGG WKH IROORZLQJVXESDUDJUDSK 2WKHU,QVXUDQFH$V([FHVV,QVXUDQFH 7R WKH H[WHQW UHTXLUHG E\DQ ³LQVXUHG FRQWUDFW´WKLV LQVXUDQFH LV SULPDU\RQ EHKDOI RI WKH DGGLWLRQDO LQVXUHGDQG DQ\RWKHU LQVXUDQFH PDLQWDLQHG E\WKH DGGLWLRQDO LQVXUHG LV H[FHVV DQG QRW FRQWULEXWRU\ ZLWK WKLV LQVXUDQFH,I WKH ³LQVXUHG FRQWUDFW´GRHV QRW UHTXLUH WKLV SURYLVLRQWKHQ 3DUDJUDSK DERYH ZLOO DSSO\ BUSINESSOWNERS BP 14 88 07 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY - OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following BUSINESSOWNERS COVERAGE FORM The following is added to Paragraph H. Other 2. You have agreed in writing in a contract or Insurance of Section III — Common Policy agreement that this insurance would be Conditions and supersedes any provision to the primary and would not seek contribution from contrary: any other insurance available to the additional Primary And Noncontributory Insurance insured. This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: 1. The additional insured is a Named Insured under such other insurance; and BP 14 88 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 1 Department of Labor & Industries C e rt i f ic a te o f W o r ke r s' Compe n sa t io n Cover a g e July 9, 2021 What does "Estimated Workers Reported" mean? Estimated workers reported represents the number of full time position requiring at least 480 hours of work per calendar quarter. A single 480 hour position may be filled by one person, or several part time workers. Industrial Insurance Information Employers report and pay premiums each quarter based on hours of employee work already performed, and are liable for premiums found later to be due. Industrial insurance accounts have no policy periods, cancellation dates, limitations of coverage or waiver of subrogation (See RCW 51.12.050 and 51.16.190). WA UBI No.602 168 268 L&I Account ID 469,507-01 Legal Business Name INTEGRA WASHINGTON INC Doing Business As INTEGRA REALTY RESOURCES-SEATT Workers' Comp Premium Status:Account is current. Estimated Workers Reported (See Description Below) Quarter 1 of Year 2021 ''7 to 10 Workers'' Account Representative Employer Services Help Line, (360) 902-4817 Licensed Contractor?No