HomeMy WebLinkAbout5.934 Original Contract
2009-1237709
Page 1 of 26 ~greement
Port ~ngeles City Of
Clallam County Washington 06/01/2009 09:14:01 ~M
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RETURN ADDRESS:
City of Port Angeles
P.O. Box 1150
Port Angeles, WA 98362
DOCUMENT TITLE:
License Agreement
April 1, 2009 - March 31, 2012
LICENSOR:
Rayonier Properties, LLC
LICENSEE:
CITY OF PORT ANGELES
STREET ADDRESS:
Former Rayonier Mill Site,
Port Angeles, Washington
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LICENSE AGREEMENT
This License Agreement ("Agreement") is entered into effective the ~ day of March, 2009,
between RAYONIER PROPERTIES, LLC, a Delaware limited liability company, authorized to
do business in the State of Washington ("LICENSOR"), and CITY OF PORT ANGELES, a
Washington municipal corporation ("LICENSEE").
In consideration of the mutual promises contained herein, the parties agree as follows.
1. Term. The term of this Agreement shall be three (3) years, commencing on April 1,
2009, and ending on March 31,2012.
2. Grant of License. LICENSOR does hereby grant to LICENSEE a non-exclusive license
to enter onto the property shown as the license agreement area on Exhibit A attached hereto
and by this reference made a part hereof to the extent such area is owned by LICENSOR (the
"Property") for the use and purpose set forth in Paragraph 3 below and for no other use or
purpose whatsoever.
3. Permitted Use and Purpose. LICENSEE may exercise its right to enter the Property
under this Agreement for the sole use and purpose of doing investigations and studies
necessary for LICENSEE to design and apply for necessary permits for its combined sewer
overflow ("CSO") project. Except as necessary to complete the investigations, design,
engineering, and permitting contemplated by this Agreement, and except as required by law,
LICENSEE (1) is expressly prohibited from engaging in clearing, grading, and/or construction of
improvements on the Property, and (2) will not submit any reports on the Property to any
governmental agency without prior review and approval by LICENSOR. LICENSOR reserves
all rights to the Property not specifically granted herein.
4. Consideration. As consideration for this Agreement, LICENSEE shall pay to the
LICENSOR a licensee fee ("License Fee") in the amount of $5,000.00 per year, payable in
advance, for each year of the Agreement. The License Fee for the first year of the term of this
Agreement shall be due and payable within ten (10) days of the date this Agreement is
executed by both parties and the payments for subsequent years shall be due and payable on
the anniversary date of the effective date stated above.
5. Operations. LICENSEE acknowledges that the Property is the site of a former mill, and
IS subject to two Agreed Orders with the Washington State Department of Ecology with respect
to investigation of the environmental condition of the Property LICENSEE further
acknowledges that investigations to date have disclosed the presence, or suspected presence,
of contamination on, in, under and about the Property. LICENSEE shall conduct its operations
under this Agreement in a careful and reasonable manner, and shall be responsible for the
safety of all persons using the Property on behalf of LICENSEE or at LICENSEE's request.
Only City employees, authorized City contractors, required tribal monitors, and personnel of
state, federal, and local agencies that have permitting authority over the site are permitted to
access the Property under this Agreement. LICENSEE shall perform all activities under this
Agreement in compliance with all federal, state and local laws, regulations, rules, ordinances
and codes applicable to the Property. All persons exercising this grant of License shall do so at
their own risk and at the expense of LICENSEE. LICENSEE shall be responsible for all costs
and expenses relating to the activities conducted on the Property by LICENSEE or its
contractors and relating to compliance with the terms of this Agreement.
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6. Repair of Damaae. LICENSEE shall repair or cause to be repaired, at its sole cost and
expense, any damage to the Property resulting from LICENSEE's exercise of its rights under
this Agreement. Damages to the Property will be repaired within seven (7) days of the
occurrence. LICENSEE shall be responsible, at its sole cost, for cleanup and removal from the
Property for all debris, trash or other material brought to or left on the Property by LICENSEE,
its employees, agents or invitees.
7. Liens and Claims. LICENSEE will keep the Property free and clear from any liens of
any nature in connection with LICENSEE's activities on the Property, including, without
limitation, any liens arising out of any work performed or materials ordered or obligations
incurred by or on behalf of LICENSEE, and hereby indemnifies and holds LICENSOR and the
Property harmless from any liability from any such liens. In the event any lien is filed against the
Property, or any portion of it, by any person claiming by, through or under LICENSEE,
LICENSEE shall, upon request made by LICENSOR, at LICENSEE's expense, immediately
cause the lien to be released of record. LICENSEE agrees to obtain full and irrevocable lien
releases from all contractors for work done on the Property and to deliver them to LICENSOR
promptly after completion of any work
8. Hold Harmless and Indemnitv. (a) LICENSEE shall defend, indemnify and save
LICENSOR, its affiliates, officers, directors, managers, employees, agents and contractors
("Licensor Parties") harmless from all liability, cost, damage and expense (including, but not
limited to, reasonable attorneys' fees) in connection with all claims, suits and actions of every
name, kind and description made or brought against Licensor Parties, or any of them by any
person or entity as a result of or on account of actual or alleged Injuries or damages to persons,
entities or property received or sustained, in any way arising out of, in connection With, or as a
result of, the exercise by LICENSEE, and/or its employees, agents, contractors and
subcontractors of the rights granted in this Agreement, except, however, to the extent any such
injury results from the negligence or intentional misconduct of LICENSOR or any of the Licensor
Parties. The obligation of LICENSEE to indemnify LICENSOR pursuant to this paragraph shall
survive the expiration and/or termination of this Agreement
(b) In compliance With RCW 4.24.115 as in effect on the date of this Agreement, all provisions
of this Agreement pursuant to which LICENSEE agrees to indemnify LICENSOR against liability
for damages arising out of bodily injury to persons or damage to property relative to the
construction, alteration, repair, addition to, subtraction from, improvement to or maintenance of
any building, road or other structure, project, development or improvement attached to land,
including the Property (i) shall not apply to damages caused by or resulting from the sole
negligence of LICENSOR, its agents or employees, and (ii) to the extent caused by or resulting
from the concurrent negligence of LICENSEE and/or its agents or employees and LICENSOR
and/or LICENSOR's agents or employees, shall apply only to the extent of LICENSEE's
negligence; provided, however, that this paragraph shall automatically and without further act by
either party to this Agreement be deemed amended so as to remove any of the restrictions
contained in this paragraph that are no longer required by RCW 4.24.115 or its successor.
(c) LICENSEE AND LICENSOR SPECIFICALLY AGREE THAT THE PROVISIONS OF THIS
SECTION 8 ALSO APPLY TO ANY CLAIM OF INJURY OR DAMAGE TO THE PERSONS OR
PROPERTY OF LICENSEE'S EMPLOYEES, AND LICENSEE ACKNOWLEDGES AND
AGREES THAT AS TO SUCH ,CLAIMS, LICENSEE, WITH RESPECT TO LICENSOR, DOES
HEREBY WAIVE ANY RIGHT OF IMMUNITY WHICH LICENSEE MAY HAVE UNDER
INDUSTRIAL INSURANCE (TITLE 51 RCW AS AMENDED AND UNDER ANY SUBSTITUTE
OR REPLACEMENT STATUTE). THIS WAIVER AND AGREEMENT WAS SPECIFICALLY
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NEGOTIATED BY LICENSOR AND LICENSEE AND IS SOLELY FOR THE BENEFIT OF
LICENSOR, ITS SUCCESSORS AND ASSIGNS, AND IS NOT INTENDED AS A WAIVER OF
LICENSEE'S RIGHTS OF IMMUNITY UNDER SAID INDUSTRIAL INSURANCE FOR ANY
OTHER PURPOSE.
9. Insurance. LICENSEE represents that it is a member of a municipal self insurance
pool. LICENSEE, at no expense to the LICENSOR, shall maintain and provide proof of
Washington Cities Insurance Authority Self Insured Coverage in the minimum limits described in
Exhibit B hereto (Washington Cities Insurance Authority $elf Insured Coverage Document CT
2009).
As to any liability of the LICENSEE incurred in the exercise of the rights granted by this
Agreement, LICENSEE's self insurance shall be primary to any owned by LICENSOR.
10. Taxes. To the extent LICENSEE is legally obligated to pay personal property taxes,
LICENSEE shall pay all personal property taxes on LICENSEE's personal property that IS
located on the Property. LICENSOR shall be responsible for paying real property taxes on the
Property.
11. Default. If at any time LICENSEE should be in default in the performance of any of the
other covenants, terms, conditions and provisions of this Agreement to be performed by It and
LICENSEE should fail to remedy such default within thirty (30) days after receiving LICENSOR's
written notice thereof, LICENSOR may terminate this Agreement unless such default shall be
remedied before LICENSEE received LICENSOR's notice of termination. If this Agreement is
so terminated, LICENSEE shall immediately surrender to LICENSOR possession and
enjoyment of the Property
12. Termination. Either party may terminate this Agreement at any time, without stating
cause, by giving notice of termination to the other. Such notice shall be given as provided in
section 17 below. If such notice is given, this Agreement shall terminate 120 days after the
notice is delivered to the other party. Except as provided in paragraphs 8(a) above and in 15.(b)
below, upon such termination, this Agreement shall be void, and thereafter, neither party shall
have any further or continuing duty or liability to the other as a result of having entered into this
Agreement.
Within 60 days after termination or expiry of this Agreement, LICENSEE shall remove all of its
property, equipment or other products in its care, custody or control from the Property. Any
property belonging to LICENSEE or in LICENSEE's care, custody or control and not removed
from the Property within such period may be removed by LICENSOR and LICENSEE agrees to
reimburse LICENSOR for the expense of removal and storage of such property. LICENSOR
shall further have the right to sell such property in a commercially reasonable manner and to
apply the proceeds from such sale first to the costs of sale and second to payment of the costs
of removal and storage of such property.
13. No Condemnation. LICENSEE agrees that during the term of this Agreement it will not
bring any condemnation action against LICENSOR or any affiliate of LICENSOR with respect to
the Property or any part of it.
14. Compliance with Laws. LICENSEE shall comply with all federal, state and local laws
and regulations relating to LICENSEE's activities hereunder, including but not limited to any and
all laws regulating environmental protection, safety, workmen's compensation, labor and wage-
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and-hours, unemployment insurance, social security, and income tax. LICENSEE agrees to
indemnify and hold LICENSOR harmless for any cost, loss, liability or obligation which either
party may sustain or incur by reason of the failure by LICENSEE to comply with any and all
such laws. LICENSEE shall obtain any and all applicable permits, business licenses or other
approvals necessary to conduct its operations on the Property.
15. Hazardous Substances. Notwithstanding any other provIsion of this Agreement,
LICENSEE shall not knowingly use, transport, store, treat, generate, sell or dispose of any
Hazardous Substances on or in any manner that affects the Property in violation of any
Environmental Law. "Affects the Property" shall include but not be limited to allowing any
hazardous substances into adjacent surface waters, soils, sediments, ground waters or air.
(a) Compliance with Environmental Laws: LICENSEE shall, at its sole cost
and expense, comply with all Environmental Laws that apply to its activities under this
Agreement.
(b) Hold Harmless and Indemnity: LICENSEE shall defend (with attorneys
approved in advance and in writing by LICENSOR), indemnify and hold LICENSOR and all
Licensor Parties harmless from any loss, claim, fine or penalty to the extent arising from the
Release of Hazardous Substances or any violation of Environmental Laws affecting the
Property as a result of the exercise by LICENSEE of its rights under the terms of this
Agreement. Such obligation shall include, but shall not be limited to, environmental response
and remedial costs, other cleanup costs, environmental consultants' fees, attorneys' fees, fines
and penalties, laboratory testing fees, claims by third parties and governmental authorities for
death, personal injuries, property damage, natural -resource damages and any other costs
LICENSEE's obligations pursuant to this subparagraph shall survive expiration or other
termination of this Agreement.
(c) Remedies: Notwithstanding any other provision of this Agreement, and
without prejudice to any other right or remedy available to LICENSOR at law, in equity or under
this Agreement, in the event of a Release of Hazardous Substances not caused solely by
LICENSOR, a violation by LICENSEE of Environmental Laws, or a default by LICENSEE of the
provisions of this Section 15, LICENSOR shall be entitled to any or all of the following rights and
remedies, at LICENSOR's option:
(i) To terminate this Agreement Immediately.
(Ii) To the extent permitted by law, to recover any and all damages
associated with such Release, violation or default, including but not limited to cleanup
costs and charges, civil and criminal penalties and fees, and any and all damages and
claims asserted by other parties and LICENSOR's attorney's fees and costs.
(d) Vacation of the Property: Prior to vacation of the Property, in addition to
all other requirements under this Agreement, LICENSEE shall remove any Hazardous
Substances placed by it on the License Area during the term of this Agreement, and shall
demonstrate such removal to LICENSOR's satisfaction.
(e) Definitions: "Environmental Laws" shall mean any federal, state or local
environmental health, safety or similar laws, statutes, rules, regulations or ordinances presently
in effect or which may be enacted during the term of this Agreement, as such laws, statutes,
rules, regulations and/or ordinances may be supplemented or amended from time to time,
99999-2033/LEGALl51882711
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including but not limited to laws regarding the proper and lawful use, transportation, storage,
treatment, generation, sale and disposal of Hazardous Substances on or in any manner that
affects the License Area, the real property or the surrounding properties. "Hazardous
Substances" shall mean any hazardous, toxic, dangerous or extremely hazardous substance,
matenal or waste, including marine pollutants, marine toxics, and air toxics, which is or becomes
regulated by the United States Government, the State of Washington, or any local governmental
authority. The term includes, without limitation, any substance containing contaminants
regulated as specified above. "Release" shall be defined as provided in 42 U.S.C. 9 9601 and
RCW 70.1050.020, or successor legislation. In the event a conflict exists between the two
definitions, the broader definition shall apply. For purposes of this Agreement, the term Release
shall also include an anticipated Release.
(f) The Parties acknowledge that the Property is part of a larger site on
which the LICENSOR deposited Hazardous Substances while operating a pulp mill. The
LICENSOR is liable for the Release of Hazardous Substances during the operation of the pulp
mill. Nothing in this Agreement is intended in any way to transfer the LICENSOR'S liability to
the LICENSEE or to diminish the LICENSOR'S liability.
16. Assianment. LICENSEE shall not assign its interest in this Agreement, by operation of
law or otherwise, without the prior written consent of LICENSOR. Any assignment made in
violation of this Paragraph 16 shall be null and void.
17. Notices. All notices required or permitted by this Agreement or applicable law shall be
In writing and shall be delivered (i) in person (by hand or by courier), (ii) by certified or registered
U.S. Mail or U.S. Postal Service Express Mail, with postage prepaid, (iii) by Express Courier
(overnight or better service) that maintains delivery records, or (iv) by facsimile transmission or
electronic-mail (so long as a duplicate copy thereof is sent the same day by one of the other
methods approved hereby), and shall be deemed sufficiently given if served in a manner
specified herein. The initial addresses for notices to be given to the parties under this
Agreement are as follows:
To LICENSOR:
Rayonier Properties, LLC
Attention: Donald L. Schwendiman
Assistant General Counsel
3888 NW Randall Way, Ste 204
Silverdale, WA, 98383
Telephone: (360) 613-4065
Facsimile: (360) 613-9733
e-mail: Oonald.schwendiman@rayonier.com
To LICENSEE:
City of Port Angeles
Attention: Bill Bloor
City Attorney
321 East Fifth Street
P.O. Box 1150
Port Angeles, WA 98362-0217
Telephone: (360) 417-4531
Facsimile: (360) 417-4529
e-maiI.WBloor@cityofpa.us
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A party may, by written notice to the other, specify a different address for notice. Notice given
by certified mail, return receipt requested or express courier is deemed given upon receipt or
when delivery is refused. Notices given by facsimile or electronic mail are deemed given upon
transmission so long as (a) reasonable evidence of transmission is obtained, and (b) such
transmission occurs during business hours at the recipient's location (i.e., 8:00 a.m. to 5:00
p.m., Monday through Friday, legal holidays excepted) and the next business day thereafter if
transmitted after such business hours.
18. Entire AQreement. This Agreement constitutes the complete agreement between the
parties regarding the subject matter hereof and there are no other agreements written or oral.
No amendment to this Agreement shall be effective unless done in writing and signed by both
parties.
19. Counterparts. This Agreement may be executed in any number of counterparts either
in original copies or by facsimile, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing any such
counterpart.
20. Interpretation. This Agreement has been reviewed by all relevant legal counsel prior to
it being executed. It shall not be construed for or against any of the parties.
21. No Third Party Beneficiaries. This Agreement will be binding upon and Inure only to
the benefit of the parties hereto and nothing herein shall or is intended to confer upon any
person, other than the parties hereto any rights, remedies, obligations or liabilities.
22. Severabilitv. If any term, covenant, condition or provision of this Agreement is held to
be invalid, void, or unenforceable, the other terms of this, Agreement shall r~maln in full force
and shall in no way be affected, impaired, or invalidated.
23. Waiver. The waiver by one party of the performance of any covenant, term, or
condition under this Agreement shall not invalidate this Agreement nor shall it be considered a
waiver by it of any other covenant, term, or condition under this Agreement.
24. Attornevs' Fees and Court Costs. In case suit or action is instituted to enforce
compliance with any of the terms of this Agreement, the losing party agrees to pay the
prevailing party a reasonable attorney's fee before or at trial or any appeal, together with all
costs and expenses incurred in connection with such actions, including the reasonable cost of
searching the records to determine the condition of title at the time suit is commenced.
IN WITNESS WHEREOF, this Agreement is executed by the parties hereto effective as of the
date first above written.
LICENSOR:
LICENSEE:
RA YONIER PROPERTIES, LLC
CITY OF PORT ANGELES
By.
Its:
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Approv1d as to form:
By: V ~ -- ~
Name: William E. Bloor
Counsel for City of Port Angeles
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Self-Insured Coverage Document
#CT -2009
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EXHIBIT "B"
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WCIA Coveraqe Document #CT-2009
Paqe 2
WASHINGTON CITIES INSURANCE AUTHORITY
Self-Insured Coverage Document CT -2009
January 1, 2009, to January 1,20109
12:01 am Pacific Standard Time
LIMITS/ULTIMATE NET LOSS.
REINSURED LAYER GEM'
$4,000,000 PER OCCURRENCE
$1,000,000 PER OCCURRENCE PER MEMBER
SELF-INSURED LAYER LIMIT
REINSURED LAYER Munich Re Amenca $15,000,000 PER OCCURRENCE
TOTAL LIMIT
$20,000,000 PER OCCURRENCE, subject to aggregates and
sub-limits below and In Section I.D, (Coverage Limits) In the
WCIA JOint Protection Program
AGGREGATE LIMITS/SUB-LIMITS.
$4,000,000 per occurrence limit and $4,000,000 annual aggregate limit per
Member applYing for the release, discharge or backup of liquids and/or effluents
from waste water and/or sanitary sewer lines owned, leased, maintained or
operated by a "Member".
$4,000,000 per occurrence limit and $4,000,000 annual aggregate per Member
applYing to Terronsm
$5,000,000 per occurrence limit and $5,000,000 annual aggregate limit per
member for Errors or Omissions Coverage ansing out of the operations,
ownership, maintenance or use of any airport
Above $5,000,000 Per Occurrence $15,000,000 annual aggregate; Product
Liability coverage per Member, $15,000,000, Public Official Liability annual
aggregate per Member, $15,000,000; Employment Practice liability annual
aggregate per Member and a $30,000,000 annual aggregate per Member for
Law Enforcement Liability arising out of Member owned jails or holding facilities
with overnight or greater length of stay for the confinement of Inmates
DESCRIPTION OF COVERAGE General Liability, Automobile Liability, Stop-Gap Coverage, Errors or OmisSions
Liability and Employee Benefits Liability.
LIMITS OF LIABILITY FOR ALL COVERAGE
The Limits/Ultimate Net Loss stated herein and the rules below set the maximum the Authority
will pay regardless of the number of
a members;
b claims made or lawsuits brought, or
c persons or organizations making claims or bnnging lawsuits
TERRITORY. ThiS coverage applies to General Liability, Automobile Liability, Stop-Gap Coverage, Errors or
Omissions liability and Employee Benefit Liability occurnng anywhere in the United States of Amenca, its territones
and possessions or Canada
.'
WCIA Coveraqe Document #CT-2009
Paqe 3
Members covered by this agreement Include the following and new members approved by the Executive Committee
dunng the Coverage Year
Aberdeen
Anacortes
A Regional Coalition for Housing
Arlington
Auburn
Balnbndge Island
Battle Ground
Benton City
Benton County Emergency Services
Bonney Lake
Bothell
Burlington
Bunen
Camas
Cashmere
Centralia
Chehalls
Cheney
Chelan
Clark Regional Emergency Services
Agency (CRESA)
Clarkston
Cle Elum
Clyde Hill
Coupeville
Covington
Cowlitz-Wahklakum Council of
Governments
Des MOines
Eastslde Public Safety
Communications
eClty Gov Alliance
Edgewood
Edmonds
Elma
Emergency Services Coordinating.
Agency
Enumclaw
Federal Way
Fife
George
Goldendale
Grandvlew
Grays Harbor 911 Communications
Hoqulam
Issaquah
Kelso
Kenmore
Kent
Kirkland
Lacey
La Conner
Lake Forest Park
Lake Forest Park Transportation
Benefit Dlstnct
Lake Stevens
Lakewood
Leavenworth
Long Beach
Longvlew
LOTT Alliance
Mabton
MACECOM
Maple Valley
Marysvllle
Marysvllle Fire District
McCleary
Medical Lake
Medina
Mercer Island
Metropolitan Park Distnct of Tacoma
Mill Creek
Milton
Monroe
Monroe Fire Distnct
Montesano
Moses Lake
Mountlake Terrace
Mount Vernon
Mukilteo
Multi Agency Communications Center
Newcastle
Normandy Park
North Bonneville
Northshore Utility Dlstnct
NW Incident Management Team
Oak Harbor
Ocean Shores
Olympia
Othello
Pasco
PEN COM
Port Angeles
Port Townsend
Pullman
Pullman-Moscow Regional Airport
Pullman Metropolitan Park Dlstnct
Puyallup
Renton
Rlchland
Rldgefleld
SCORE
Shelton
Shoreline
Silver Lake Water & Sewer Dlstnct
Skagit 911
Snohomlsh
Snohomlsh Co Emergency RadiO
System
SNOCOM/Medlc 7
SNOPAC
Snoqualmle
Soap Lake
Spokane Valley
Stanwood
Steilacoom
Sumner
Three Rivers Regional Wastewater
Authonty
Thurston Regional Planning CounCil
Toppenlsh
Tukwila
Tumwater
Union Gap
University Place
Valley Communications
Valley Regional Fire Authonty
Walla Walla
WA CllIes Insurance Authonty
Warden
Washougal
Water Operating Board
Westport
WHITCOM 911
Woodlnvllle
Woodway
Yakima Valley Conference of
Governments
Yarrow POint
Zillah
ThiS document IS not an Insurance policy. The Washington Cities Insurance Authority (Authority) IS not an insurance
company ThiS document IS an agreement by the Authority and its members to pay all covered losses subject to the
limits and other terms and conditions of thiS Agreement and any addenda attached In consideration of the
assessments paid by the members, thiS Agreement proVides the following coverages.
I. COVERAGE AGREEMENTS
Coverage
A. GENERAL & AUTOrvlOBILE LIABILITY COVERAGE
WCIA Coveraqe Document #CT-2009
Paqe 4
In consideration of the assessment herein provided, the Authority hereby agrees, subject to the
limitations, terms and conditions hereinafter mentioned, to pay on behalf of the member all sums which
the member shall be obligated to pay by reason of liability
a Imposed upon the member by law, or
b assumed under contract or agreement by the member and/or any officer, director, offiCial, or
employee of the member, while acting In his or her capacity as such
for damages, direct or consequential and expenses, all as more fully defined by the term "ultimate
net loss" on account of
I personal inJury,
II property damage,
III advertiSing liability,
caused by or arising out of an occurrence dunng the coverage period The coverage for the liability
assumed under contract In I A 1.b above shall be limited to the terms, conditions, limitations and
exclUSions In the Coverage Document
"Damages" as used in thiS section and thiS Agreement, do not Include punitive or exemplary
damages or fines or penalties awarded against the member
2. ExclUSions
This Agreement IS subject to the follOWing exclUSions:
This Agreement shall not apply to any claims against any member'
a. Regarding any obligation for which the member or any carrier as insurer may be held liable under
any Worker's Compensallon, unemployment compensation or disability benefits law, or under any
Similar law,
I. With respect to liability anslng out of bodily injury to Law Enforcement Officers and Fire
Fighters employed by the member It IS agreed that exclUSion (a) above is deleted and the
follOWing substituted therefore.
thiS Agreement does not apply to personal inJury of any employee arising out of and in the
course of their employment by the member to the extent that benefits for such personal Injury
are either payable or reqUIred to be proVided under the "Washington Law Enforcement
Officer's and Fire Fighter's Retirement System Act"
b For personal InJury to or Sickness, disease or death of any employee of the member anslng out of
and in the course of their employment by the member;
c For any liability anslng from providing or failing to provide health care or otherwise subject to
RCW 7 70 However thiS exclUSion shall not apply to paramedics or phYSical therapists The term
"phYSical therapist" shall Include any member who IS prOViding phYSical therapy service to another
member and who IS subject to RCW 18 74
d. For advertiSing activities, including claims made against any member for
failure of performance of contract, but thiS shall not relate to claims for unauthonzed
appropnatlon of Ideas based upon alleged breach of an Implied contract;
iI. Infnngement of registered trade mark, service mark or trade name by use thereof as the
registered trade mark, service mark or trade name of goods or services sold, offered for sale or
advertised, but thiS shall not relate to titles or slogans,
III incorrect description of any article or commodity;
iv. mistake in advertised pnce,
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WCIA Coveraqe Document #CT-2009
Paqe 5
e For
contamination of any environment by pollutants that are Introduced at any time, anywhere, In
any way,
Ii any bodily Injury, personal InJury, property damage, costs or other loss or damage arising out
of such contamination, including but not limited to, cleaning upon, remedYing or detoxifYing
such contamination, or
III the payment of sums related to (1) the investigation or defense of any loss, Injury or damage or
(2) payment of any cost, fine or penalty or (3) payment of any expense involving a claim or SUit
related to I or II above As used In this Exclusion, the following terms will have the following
meanings
(1) "Contamination" means any unclean or unsafe or damaging or inJUriOUS or unhealthful
condition arising out of the presence of pollutants, whether permanent or transient In any
environment
(2) "Environment" Includes any person, any man-made object or feature, animals, crops and
vegetation, land, bodies of water, underground water or water table supplies, air and any
other feature of the earth or its atmosphere, whether or not altered, developed or
cultivated, Including but not limited to any of the above, currently or formerly owned,
controlled, leased, used or occupied by the member.
(3) "Pollutants" means smoke, vapors, soot, fumes, aCids, sound, alkalis, chemicals, liquids,
solids, gases, thermal pollutants, waste matenals and all other Irritants, pOisons or
contaminants.
iv. However, the pollution exclusion as stated above in section 2e(I),(II),(III) will not apply to liability
from an "Occurrence" causing "Personal InJury" or "Property Damage" when the cause of such
"Personal InJury" or "Property Damage" IS the release, discharge or backup of liquids and/or
effluents from waste water and/or sanitary sewer lines owned, leased, maintained or operated
by a "Member" but, the coverage limits for such an "Occurrence" shall be limited to a special
per occurrence and annual aggregate limit as stated In the AGGREGATE LIMITS/SUB-LIMITS
section on page 2 of thiS document and no other coverage limits of thiS document shall apply
to any such "Occurrence".
f. For personal injury or property damage due to war, whether or not declared, ciVil war, Insurrection,
rebellion or revolution or to any act or condition inCident to any of the foregoing, With respect to
liability assumed by the member under contract,
g For personal Injury or property damage arising out of the ownership, maintenance, operation, use,
loading or unloading of
i. any aircraft owned or operated by any member,
il. any other aircraft operated by any person in the course of his/her employment by any member;
iil any aircraft in the care, custody or control of the member for storage, servicing or fueling, or
IV. any watercraft over 30 feet
h For liability Imposed upon a member or which IS Imputed to a member under the Federal
"Employee Retirement Income Security Act of 1974" and any law amendatory thereafter,
For property damage to premises alienated by the member arising out of such premises or any part
thereof;
J. For loss of use of tangible property which has not been phYSically injured or destroyed resulting
from
WCIA Coveraqe Document #CT-2009
Paqe 6
a delay In or lack of performance by or on behalf of the member of any contract or agreement,
or
the failure of the member's products or work performed by or on behalf of the member to meet
the level of performance, quality, fitness or durability warranted or represented by the member,
but this exclUSion does not apply to loss of use of other tangible property resulting from the
sudden and accidental physical InJury to or destruction of the member's products or work
performed by or on behalf of the member after such products or work have been put to use by
any person or organization other than a member
k For property damage to the member's products anslng out of such products or any part of such
products,
For property damage to work performed by or on behalf of the member arising out of the work or
any portion thereof, or out of matenals, parts or equipment furnished In connection therewith,
m For damages claimed for the Withdrawal, Inspeclion, repair, replacement, or loss of use of the
member's products or work completed by or for the member or of any property of which such
products or work form a part, If such products, work or property are Withdrawn from the market or
from use because of any known or suspected defect or deficiency therem,
n. For any liability arising out of or In any way connected with the operatJon of the prinCiples of
eminent domain, condemnation proceedings, or Inverse condemnation, by whatever name called,
whether such liability accrues directly against the member or by virtue of any agreement entered
Into by or on behalf of the member;
o For any liability arising out of the operations, ownership, maintenance or use of any airport
p. For any liability arising out of ownership, operation, maintenance or use of any transit district, or
transit department buses, or other transit district or transit department automobiles, including
loading and unloading thereof, however, this exclusion does not apply to liability arising out of
transit district or transit department buses chartered by a member in respect to special events.
q For any liability assumed by the member under any contract or agreement or arising out of the
member's failure to perform, failure to payor default on any contract or agreement ThiS exclUSion
would not apply to contracts or agreements to hold harmless or Indemnify another person or entity
as contemplated by Section A, 1 b of the General and Automobile liability coverage.
For any liability for fines, penalties, punitive or exemplary damages awarded against a member for
any reason
s. For any liability arising out of the failure to adequately supply, Interruption or impairment of
electrical, gas, water, or sewer service
t. For nuclear energy liability as further deSCribed below
ThiS Agreement does not apply
(1) Under any Liability Coverage, to personal InJury or property damage
(a) With respect to which a member IS also an Insured under a nuclear energy liability
policy Issued by Nuclear Energy Liability Insurance ASSOCiation, Mutual AtomiC
Energy liability Underwriters or Nuclear Insurance ASSOCiation of Canada, or would
be an Insured under any such policy but for its termination upon exhaustion of ItS limit
of liability, or
(b) resulting from the hazardous properties of nuclear matenal and With respect to which
(I) any person or organization IS required to maintain financial protection pursuant to
the AtomiC Energy Act of 1954, or any law amendatory thereof, or
WCIA Coveraqe Document #CT-2009
Paqe 8
(III) handling, processing or packaging waste
(c) any equipment or device used for the processing, fabricating or allOYing of specIal
nuclear matenallf at any time the total amount of such matenalln custody of the
member at the premises where such equipment or device is located consists of or
contains more than 25 grams of plutonium or uranium 233 or any combination
thereof, or more than 250 grams of uranium 235
(d) any structure, basin, excavation, premises or place prepared or used for the storage
or disposal of waste and Includes the site on which any of the foregoing IS located, all
operations conducted on such site and all premises used for such operations.
"Nuclear reactor" means any apparatus designed or used to sustain nuclear fiSSion In
a self supporting chain reaction or to contain a cntlcal mass of fissionable material
"Property damage" Includes all forms of radioactive contamination of property
u For liability, defense costs, fines or damages arising out of the willful or wanton Violation of any cIvil
statute, ordinance or'regulatlon committed by or With the knowledge or consent of any member,
except that any fact pertaining to anyone Insured shall not be Imputed to any other member for the
purpose of determining the application of thiS exclUSion
v For any liability, defense costs, fines or damages which arise out of, brought about or contributed to
by fraud, dishonesty or bad faith by a member or arising out of the willful Violation of a penal code
or ordinance committed by or With the knowledge or consent of any member or claims of Injury
anslng out of the acts of fraud committed by or at the direction of the member With affirmative
dishonesty or actual intent to deceive or defraud, except that any fact pertaining to anyone
member shall not be Imputed to any other member for the purpose of determining the application of
thiS exclusion
w For any liability of a member anslng In whole or in part, out of any member obtaining remuneration
or financial gain to which the member was not legally entitled, except that any fact pertaining to any
one member shall not be Imputed to any other member for the purposed of determining the
application of thiS exclUSion
x For any property damage arising out of subsldens;e "SubSidence" means any earth movement,
including but not limited to settling, expanSion, earth sinking, earth riSing or shifting, slipping, falling
away, tilting, caving In, eroding, mud flow and any other movement of land or earth. ThiS exclUSion
does not apply to property damage arising out of subsidence proximately caused by a negligent act
or omiSSion of any member.
y For any liability anslng out of the rupture, bursling, overtopping, aCCidental discharge or partial or
complete structural failure to any owned dams
"Dams" means any artificial barrier, together with appurtenant works, which
i. Is 25 feet or more in height from the foot of a natural bed of stream or watercourse at the down
stream toe of the barrier, or from the lowest elevation of the outside limit of the barner, If it is
not across a stream channel or water course to maximum possible water storage elevation; or
Has water Impounding capacity of 50 acre feet or more
~~~
z For any liability for refund of taxes, fees or assessments
,'1/
aa Anslng out of or resulting from
Inhaling, Ingesting, or prolonged physical exposure to asbestos or goods or products
containing asbestos;
The use of asbestos In constructing any good, product or structure, or
III. The removal of asbestos from cW)' good, product or structure; or
WCIA Coveraqe Document #CT-2009
Paqe 7
(II) the member IS, or had this Agreement not been Issued would be, entitled to
Indemnity from the United States of America, or any agency thereof, under any
agreement entered Into by the United States of Amenca, or any agency thereof,
with any person or organlzatJon
(2) Under any medical payments coverage, or under any supplementary payments provISion
relating to first aid, to expenses Incurred with respect to bodily Injury resulting from the
hazardous properties of nuclear material and arising out of the operation of a nuclear
facility by any person or organization
(3) Under any Liability Coverage, to bodily Injury or property damage resulting from the
hazardous properties of nuclear material, If
(a) the nuclear material
(I) IS at any nuclear facility owned by, or operated by or on behalf of, a member, or
(Ii) has been discharged or dispersed there from,
(b) the nuclear material IS contained In spent fuel or waste at any time possessed,
handled, used, processed, stored, transported or disposed of by or on behalf of a
member, or
(c) the bodily Injury of property damage arises out of the furnishing by a member of
services, materials, parts or equipment In connection with the planning, construction,
maintenance, operation or use of any nuclear facility, but If such faCility is located
within the United States of America, its terntorles or possessions of Canada, this
exclusion (3) applies only to property damage to such nuclear facility and any
property there at.
II As used in this exclUSion
(1) "hazardous properties" Include radloactJve tOXIC or explosive properties,
(2) "nuclear material" means source material, speCial nuclear matenal or by-product matenal,
(3) "source material", "speCial nuclear material" and "by-product material" have the meanings
given them In the Atomic Energy Act of 1954 or In any law amendatory thereof,
(4) "spent fuel" means any fuel element or fuel component, solid or liqUid, which has been
used or exposed to radiation In a nuclear reactor,
(5) "waste" means any waste material
(a) containing by-product material other than the tailings or wastes produced by the
extraction or concentratIon of uramum or thorium from any ore processed primarily for
Its source matenal content, and
(b) resulting from the operation by any person or organization of any nuclear faCility
included under the first two paragraphs of the definition of nuclear faCility
(6) "nuclear facility" means
(a) any nuclear reactor
(b) any equipment or device designed or used for
(i) separating the isotopes of uranium or plutonium,
(Ii) processing or utiliZing spent fuel, or
WCIA Coveraqe Document #CT-2009
Paqe 9
IV The manufacture, sale, transportation, storage or disposal of asbestos or goods or products
containing asbestos
I
ab To any liability, indemnity, defense or responsibility of any kind anslng out of or Imposed by
Chapter 98 (R48) kn,own as the Pnvate Property Regulatory Fairness Act.
ac For any liability, Inde:mnlty, or defense anslng out of the operations of
Any separate non-member legal or administrative entity created In accordance With Chapter
3934 of the Re~lsed Code of Washington entitled, "Interlocal Cooperation Act", excluding the
Authonty ItS em~loyees, officers and members, or
Any local Improvement distncts and/or taxing dlstncts including but not limited to Fire
Protection Dlstnbs (RCW Chapter 52), Port Distncts (RCW Chapter 53), Public Utility Dlstncts
(RCW Chapter 54), Sewer Dlstncts (RCW Chapter 56), Water Dlstncts ( RCW Chapter 57),
Intercounty Rural library Dlstncts (RCW Chapter 27 14), Irrigation Dlstncts (RCW 87 03), Lake
Management Dlstncts (RCW 36.61), County Roads & Bndges Service Dlstncts (RCW 36.83)
and County Park and Recreation Dlstncts (RCW 36 69) excluding any authOrity members ThiS
exclUSion IS not applicable to any appointed or elected offiCial of a member while acting In the
scope of their lawful duties for or on behalf of a member as a board or commiSSion
representative to organizations descnbed In (I) and (Ii) above
ad Any liability, indemnity, consequential damages, or defense ansing out of or occurring, In whole or
In part, due to the failure of or Improper operation of any member-owned or used computer,
computer software, or equipment With an embedded computer chip due to said Items' failure to
recognize correctly the year 2000 and beyond, or, due to said Items' failure to operate or operate
correctly on or after January 1, 2000.
ae Any liability, Indemnity, consequential damages or defense ansing out of or occurring In whole or In
part due to a member's cnmlnal actions or conduct that Violates any criminal statute, code,
ordinance or law.
af For any liability anslng out of the operations, ownership, maintenance or use of any hospital or
alcoholic center;
"Jail facilities", including detoxification units (commonly known as "drunk tanks") are not to be
conSIdered as "alcoholiC centers".
B STOP-GAP COVERAGE
Coverage
In conSideration of the assessment herein proVided, It is agreed that If, under any Circumstances, It IS
determined that any employee of the member who IS reported and declared under the Worker's
Compensation Law or Laws of the State of Washington IS Injured In the course of their employment but
IS not entitled to receive (or elects not to accept) the benefits prOVided by the aforementioned Law, then
thiS policy shall cover the legal liability of the member for such personal InJUry, disease, or death and
pay on behalf of the member all sums which the member shall become legally obligated to pay as
damages and expenses, all as defined by the terms "ultimate net loss" and "occurrence"
2 ExclUSions
The coverage granted hereunder shall not apply to
a Personal Injury, disease or death suffered or caused by any person knowingly employed by the
member In Violation of any law as to age, or under the age of 14 years regardless of any such law;
b. any claim recoverable under the Insurance proVisions of any Worker's Compensation or
Occupations Disease Act or Law or under the U S Longshoremen's and Harbor Workers'
Compensation Act or any other insurance available for the protection of the member,
WCIA Coveraqe Document #CT-2009
Paoe 10
c Personal InJury, disease or death caused by or anslng from the use, maintenance, or operation of
aircraft,
d any premium assessment, penalty, fine or other obligation Imposed by any Worker's Compensation
Law,
e any claim for personal inJury, disease, or death with respect to which the member IS depnved of any
defense or defenses or IS otherwise subject to penalty because of default In premium payment
under, or any other failure to comply with the provIsions of the Worker's Compensation Law or Laws
of the State above named
Bodily Injury by accident or disease to the master or members of the crew of any vessel
C ERRORS OR OMISSIONS LIABILITY COVERAGE
Coverage
In consideration of the assessment herein provided, the Authonty shall pay on behalf of Its member all
sums which the member shall become legally obligated to pay anslng out of any occurrence which
results In a claim for damages and expenses, all as more fully defined by the term "ullimate net loss",
anslng out of any claim for breach of any duty made against the member by reason of any negligent act,
error or omiSSion committed by the member dunng the policy period
2 Exclusions
The exclUSIOnS applicable to General and Automobile Liability section also apply to this section except
exclusion "0". Additionally, the Errors and OmiSSIOnS section does not apply
a to physical injury to or destruction of tangible property Including the loss of use thereof at any time
resulting therefrom,
b. liability or responsibility anslng out of or Imposed by any constitutional prOVision, statute, county,
municipal or local ordinance or law admlnlstralive order, or rule of law dealing with the power of
eminent domain, condemnation or Inverse condemnation, or any acts arising out of or caused by
the member(s) thereunder,
c to any dishonest, fraudulent, cnmlnal or malicIous act;
d. to claims, occurrences or accidents which are covered under any other section of this Agreement,
e. to any claims or for any liability anslng out of the member's failure to secure a proper bond or
secure payment for any contractor, subcontractor or third person who has performed work or
prOVided matenals to the member as part of the performance of any contract for the benefit of the
member
3 Pnor Wrongful Acts
Claims based on wrongful acts that occurred before the effective date of WCIA membership will also be
covered, provided that all of the follOWing conditionS are met
a The wrongful act must have occurred Within the pnor thirty SIX (36) month penod pnor to a member
JOining WCIA and be reported to WCIA Within the next 12 month penod,
b The member must not have had pnor knowledge of the wrongful act or claim on the effective date
of WCIA membership nor have had any reasonable way to foresee that a claim might be brought,
c The claim must be for a wrongful act that would have been covered by the WCIA Coverage
Document In force at the time the claim IS presented to WCIA.
d Thp claim will only be Indemnified up to the pnor public offiCials or errors & OllllSSlons insurance
policy or WCIA liability limits, whichever IS less,
.'
WCIA Coveraqe Document #CT-2009
Paqe 11
e Use of any other available Insurance covenng the claim excludes the use of WCIA coverage,
The pnor wrongful act was within the course and scope of employment for employees or duties as
a public official, and
g Pnor to the expiration of their current insurance coverage and pnor to JOining WCIA, all potential
losses that the member knew about must have been reported to their Insurance carner
h The thirtY-SIX (36) month pnor coverage referenced In paragraph 3(a) shall only apply to members
who have JOined WCIA on or after June 1, 2002 For members who have JOined pnor to June 1,
2002, the pllor coverage shall be twelve (12) months Instead of thirtY-SIX (36) months and be
subject to all other conditions In 3(b), 3(d), 3(e), 3(f), and 3(g)
4 Optional Extended Reporting Penod
A member may, at ItS option, subject to WCIA approval, purchase an additional extended reporting
penod of twenty-four (24) months, provided that all the following conditions are met
a The member requests the additional extended reporting penod pilar to the member JOining WCIA,
b The member shall purchase thiS coverage at a cost determined by an actuary hired by WCIA,
c The conditions applicable In Paragraph 3, Prior Wrongful Acts, also apply to thiS section With the
exception of 3(a) and 3(d),
d. The wrongful act must have occurred within the pnor thirtY-SIX (36) month period pnor to a member
JOining WCIA and be reported to WCIA Within the next thirtY-SIX month penod,
e If the optional extended reporting period IS granted, the limit of liability for all prior wrongful acts
coverage IS $5,000,000 per occurrence and $5,000,000 In the aggregate,
f. The member shall have jOined WCIA on or after June 1, 2002
D EMPLOYEE BENEFITS LIABILITY COVERAGE
1. Coverage
In conSideration of the assessment herein provided, the Authority agrees With the member named In
thiS Agreement as follows
a. The Authonty will pay on behalf of the member all sums which the member shall become legally
obligated to pay as damages and expenses, all as more fully defined by the term "ulllmate net
loss", anslng out of any claim made against the member by any employee or the beneficlanes or
legal representatives thereof for injury anslng out of any negligent act, error or omiSSion, dunng the
coverage period, of the member or any other person for whose acts the member is legally liable, In
the administration of employee benefits as defined
2 Definitions
a EMPLOYEE BENEFIT PROGRAM The term "employee benefit program" shall mean Group Life
Insurance, Group Accident or Health Insurance, Pension plans, Worker's Compensation,
Unemployment Insurance, SOCial Secunty and Disability Benefits, and any other similar benefit
program
b ADMINISTRATION As respects the coverage afforded hereby, the unqualified word
"administration" whenever used shall mean
giving counsel to employees With respect to the employee benefits,
II. interpreting employee benefits;
IIi. handling of records In connectloll With employee beneflls,
'.
WCIA Coveraqe Document #CT-2009
Paqe 12
IV affecting enrollment, termination or cancellation of employees under employee benefit
programs,
v performed by a person authorized by the member to do such acts
3 Exclusions
This Agreement does not apply.
a to any dishonest, fraudulent, Criminal or malicIous act,
b to libel, slander, diSCrimination, or humiliation,
c to bodily Injury, or Sickness, disease, or death of any person,
d to Injury to or destruction of any tangible property, Including the loss of use thereof,
e to any claim based upon the member's failure to comply With the federal "Employee Retirement
Income Security Act of 1974",
f. to any claim for failure or performance of contract by any insurer;
g. to any claim based upon the member's failure to comply With any law concerning Worker's
Compensation, Unemployment Insurance, SOCial Security or Disability Benefits.
II. COVERAGE DEFINITIONS
This Agreement is subject to the follOWing definitions.
A MEMBER
"Member" Includes the Washington Cities Insurance AuthOrity and any member muniCipal corporation, city,
town or muniCipal entity In the State of Washington
The unqualified word "member" includes
all offiCials, officers, employees, and volunteers working for or on behalf of the member and any person,
organization, trustee or estate to whom or to which the member IS obligated by virtue of a written
contract to proVide Insurance to the same extent as is afforded by thiS Agreement, but only With respect
to actions within the scope of their employment by or on behalf of the member,
2 any person serving on the members governing body, any persons serving on the members boards or
commiSSions, any elected or appointed official of the member, any other employee, or any volunteer
serving the member, if the person is acting in the scope of their employment, apPOintment, duties, or
service to the member;
except With respect to the ownership, maintenance or use, Including loading or unloading, of
automobiles while away from premises owned by, rented to or controlled by the member or the ways
Immediately adjOining,
the term "member" does not Include any private for profit businesses or corporations, volunteer
organizations or non-profit corporations and/or their officers, offiCials, or members when acting In or for
the Interests of and/or at the direction of said business, organization or corporation,
3. any person while USing an automobile owned by, leased, rented, or loaned to the member or hired for
use on behalf of the member or any person or organization legally responSible for the use thereof,
provided the actual use of the automobile IS by the member or With the member's permiSSion, and any
executive officer, other employee, director or volunteer of the member With respect to the use of an
automobile not owned by the member In the business of the member The coverage With respect to any
persall or organization other than the member does not apply under thiS section.
.'
WCIA Coveraqe Document #CT-2009
Paqe 13
a to any person or organization, or to any agent or employee thereof, operating an automobile sales
agency, repair shop, service station, storage garage or public parking place, with respect to any
occurrence anslng out of the operation thereof,
b with respect to any automobile hired by or loaned to the member, to the owner or a lessee thereof
other than the member, or to any agent or employee of such owner or lessee
B PERSONAL INJURY
The term "personal InJury" means
bodily Injury, sickness, disease, disability or shock, Including death anslng therefrom, medical
malpractice InJury, Including emergency medical treatment and all acts of paramediCS, or If anslng out of
the foregoing, mental angUish and mental InJury,
2 false arrest, false Impnsonment, wrongful eViction, wrongful detention, or malicIous prosecution, or
3 libel, slander, defamation of character, humiliation or InvaSion of the nghts of privacy, unless arising out
of advertising activities;
4. unlawful dlscnminatlon not committed by or at the direction of any executive officer of the member, but
only with respect to the liability other than fines and penalties imposed by law,
5 false or Improper services of process, and
6 assault or battery committed for the purpose of protecting persons or property or incident to an arrest.
C PROPERTY DAMAGE
The term "property damage" means loss of or direct damage to or destruction of tangible property (other
than property owned, rented or leased by the member), which occurs during the policy period, including loss
of use thereof at any time resulting therefrom and loss of use of tangible property which has not been
phYSically Injured or destroyed
D ADVERTISING LIABILITY
The term "advertising liability" means
libel, slander or defamation,
2. any Infnngement of COPYright or of title or of slogan,
3 piracy or unfair competition or Idea mlsappropnatlon under an Implied contract,
4. any invaSion of right of privacy;
committed or alleged to have been committed In any advertisement, publiCity article, broadcast or
telecast and ansing out of the member's advertiSing actiVities
E OCCURRENCE
The term "occurrence" means an aCCident or a happening or event or a continuous or repeated exposure to
substantially the same general harmful conditions which unexpectedly and unintentionally result In personal
Injury, property damage, advertiSing liability, errors or omiSSions liability Including wrongful acts or stop-gap
liability dunng the policy penod All such exposure to substantially the same general conditions eXisting at or
emanating from one location shall be deemed one occurrence
With respect to "Personal InJury" and "Property Damage" all "Damages" arising out of substantially the same
"Personal Injury" or "Property Damage" regardless of the frequency, timing, repetition, the numbel or kind of
events or offenses, or the number of "Claimants", will be conSidered as arising out of one "Occurrence" and
"
WCIA Coveraqe Document #CT-2009
Paqe 14
shall be deemed to have occurred on the date of the first event or offense causing "Personal Injury" or
"Property Damage"
Only one Self-Insured Coverage Document Issued by WCIA and one limit of coverage IS applicable to any
one "Occurrence"
Further, the definition of occurrence Includes any Intended act by or at the direction of the member which
results In personal Injury, If such injury arises solely from the use of reasonable force for the purpose of
protecting persons or property or making a lawful arrest
F ULTIMATE NET LOSS
The term "ultimate net loss" means the total sum which the member becomes obligated to pay by reason of
liability claims, covered hereunder, either through adjudication or compromise and shall also Include
hospital, medical and funeral charges and all sums paid as salaries, wages, compensation, fees, charges
and law costs, premiums on attachment or appeal bonds, Interest expenses for doctors, lawyers, nurses and
investigators and other persons, and for litigation, settlement, adjustment and Investigation of claims and
SUitS covered hereunder UltJmate net loss shall Include all sums paid as salaries, expense, or costs to
lawyers, or a lawyer's representative, other than paid employees of the member, and investigators, retained
experts or other persons rendering services In handling specifiC litigation and coverage determination costs
over $1 ,000 per occurrence Other salaries paid to employees of the member or the company, fees paid to
the member's service company for handling claims are excluded from the ultimate net loss.
G SELF-INSURED RETENTION
The term "self-Insured retention" means the amount of "ultimate net loss" payable by the member in respect
of each occurrence.
H PRODUCTS AND COMPLETED OPERATIONS LIABILITY
The term "products liability" means
1. liability arising out of goods or products manufactured, sold, handled or distributed by the member or by
others trading under their name if the occurrence occurs after possession of such goods or products
has been relinquished to others by the member or by others trading under their name and If such
occurrence occurs away from premises owned, rented or controlled by the member; provided such
goods or products shall be deemed to include any container thereof, other than a vehicle, but shall not
Include any vending machine or any property, other than such container, rented to or located for use of
others but not sold,
2 The term "completed operations" means liability arising out of operations, if the occurrence occurs after
such operations have been completed or abandoned and occurs away from premises owned, rented or
controlled by the member, prOVided operations shall not be deemed Incomplete because Improperly or
defectively performed or because further operations may be required pursuant to an agreement,
proVided further the follOWing shall not be deemed to be "operations" within the meaning of this
paragraph,
a pick-up or delivery, except from or onto a railroad car,
b the maintenance of vehicles owned or used by or in behalf of the member,
c. the eXistence of tools, unlnstalled equipment and abandoned or unused matenals
ANNUAL PERIOD
The term "each annual period" means each consecutive penod of one year commencing from the effective
date of this Agreement
J AIRCRAFT
The term "aircraft" mealls allY heavier than air or lighter than air aircraft deSigned to transpOli persons or
property.
.'
WCIA Coveraqe Document #CT-2009
Paqe 15
. 1
K AUTOMOBILE
The term "automobile" means a land motor vehicle, trailer or seml-traller designed for travel on public roads
(Including any machinery or apparatus attached thereto), but does not Include mobile equipment
L PARAMEDIC
The term "paramedic" shall Include all personnel who may engage In rendenng emergency medical
assistance, Including but not limited to the categones defined In RCW 18 73 and RCW 18 71.200
"Emergency medical technicians," "PhysIcians trained mobile Intravenous therapy technicians," "physIcians
trained mobile airway management technicians," and phYSICians trained mobile Intensive care paramedics",
provided that all amendments of RCW 1873 and RCW 1871 200 shall here and hereafter be Included In the
definition of the above categones
M TERRORISM
The term "Terronsm" means activities against persons, organizations or property of any nature
1. That Involve the follOWing preparation for the follOWing
a Use or threat of force or violence, or
b Commission or threat of a dangerous act, or
c. Commission or threat of an act that Interferes With or disrupts an electronic communication,
information or mechanical system, and
2 When one or both of the follOWing applies.
a The effect IS to intimidate or coerce a government or the cIvIlian population or any segment thereof,
or to disrupt any segment of the economy; or
b It appears that the Intent is to intimidate or coerce a government, or to further political ideological,
religious, SOCial or economic objectives or to express (or express opposition to) a philosophy or
ideology.
III. COVERAGE CONDITIONS
ThiS Agreement IS subject to the follOWing conditions
A ASSESSMENT
The assessment for thiS coverage vanes from member to member and is set by the Board of Directors of the
Authonty In accordance With Its By-laws and the JOint Protection Program
Coverage under thiS Agreement IS conditioned on and offered in conSideration of the assessment being paid
by a member In the time, manner, amount and method specified by the Board of Directors, Bylaws and Joint
Protection Program of WCIA
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Paqe 16
B PRIOR EXCESS INSURANCE AND NON-CUMULATION OF LIABILITY
It IS agreed that If any loss IS covered In whole or In part under any other excess policy Issued to the
member prior to the effective date hereof the limit of liability hereunder shall be reduced by any amounts due
to the member on account of such loss under such prior excess Insurance Subject to the foregoing and to
all the other terms and conditions of thiS Agreement In the event that personal InJury or property damage
arising out of an occurrence covered hereunder IS continuing at the time of termination of thiS Agreement,
the AuthOrity Will continue to protect the member for liability In respect of such personal InJury or property
damage Without payment of additional assessment
C INSPECTION AND AUDIT
The AuthOrity shall be permitted to examine and audit the member's books and records at any time dUring
the coverage period and any extension thereof and Within three (3) years after the final termination of thiS
Agreement, as far as they relate to the assessment bases or the subject matter of thiS coverage
D CROSS LIABILITY
ThiS Agreement shall protect each member In the same manner as though a separate Agreement had been
Issued to each, except that nothing herein shall operate to Increase the AuthOrity's liability beyond the
amount or amounts for which the AuthOrity would have been liable had only one member been named
E. NOTICE OF OCCURRENCE
Whenever the authOrized representalives of the member have information from which the member may
reasonably conclude that an occurrence covered hereunder involves injuries or damages WhiCh, in the event
that the member should be held liable, IS likely to Involve thiS coverage, notice shall be sent to the AuthOrity
as soon as practicable However, Immediate written notice shall be given to the Authority when any injury of
the following type occurs
1. a fatality or death of a person In police custody,
2 amputation of a major extremity,
3 any serious head Injury (Including skull fracture or loss of sight of either or both eyes),
4 any Injury to the spinal cord,
5. any disability of more than one year or where it appears reasonably likely that there will be disability of
more than one year,
6 any burn 25% or more of the body,
7 heart or vascular disorders,
8. accidents where multiple injuries are Involved or
9. act~ of employment dlscrimlnalion and/or harassment Involving race, age, gender, religion, disability or
prohibited retaliation
Such notice shall contain particulars suffiCient to Identify the member and also reasonably obtainable
Information respecting the time, place and circumstances of the Injury, the names and addresses of the
Injured and of available witnesses If SUit or other proceeding is brought against the member, the member
shall Immediately forward to the AuthOrity every demand, notice, summons, or other process or true copies
thereof received by the member or the member's representatives, together With copies of reports of
investigations made by the member With respect to such claim, SUit or proceeding
F ASSISTANCE AND COOPERATION
The member and the AuthOrity shall cooperate in all things in the defense of such claim, SUit or proceeding
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WCIA Coveraqe Document #CT-2009
Paqe 17
. t
G APPEALS
In the event the member elects not to appeal a Judgment, the Authority may elect to make such appeal at Its
cost and expense, and shall be liable for the taxable costs and disbursements and Interest Incidental
thereto, but In no event shall the liability of the Authority for ultimate net loss exceed the amount set forth In
this Agreement for anyone occurrence and In addition the cost and expense of such appeal
H BANKRUPTCY AND INSOLVENCY
In the event of the bankruptcy or Insolvency of the member or any entity comprising the member, the
Authonty shall not be relieved thereby of the payment of any claims hereunder because of such bankruptcy
of Insolvency
OTHER INSURANCE
If other valid and collectible insurance, which IS written by another insurer IS available to the member
covering a loss also covered by this Agreement, other than Insurance that IS In excess of this coverage, the
coverage afforded by this Agreement shall be In excess of and shall not contribute with such other
insurance.
J SUBROGATION
The Authonty shall be subrogated to the extent of any payment hereunder to all the member's nghts of
recovery thereof, and the member shall do nothing after loss to prejudice such nght and shall do everything
necessary to secure such right
K CHANGES
Notice to or knowledge possessed by any person shall not effect a waiver or change In any part of this
Agreement or stop the Authority from asserting any right under the terms of this Agreement, nor shall the
terms of this Agreement be waived or changed, except by addenda Issued to form a part hereof, signed by
the Authonty
L. ASSIGNMENT
Assignment of Interest under this Agreement shall not bind the Authority unless and until its consent IS
endorsed hereon
M CANCELLATION
Refer to the language of the JOint Protection Program, Article 8