HomeMy WebLinkAboutClearwater Construction & Management - Columbia East FM - CP9-SR-2A-17-01 10.15.2018CITY OF PASCO
INFORMATIONAL COVER SHEET FOR
DOCUMENTS REQUIRING CITY MANAGER SIGNATURE
(Print on Blue Paper when completed.)
Project 'Name: 17003 Columbia East Pump Station and Force Main Date: 8/23/2018
Contract Number: CP9-SR-2A-17-01 G/L Account #: 460,90.666-56.6562
Amount seeking approval for: $ 2,669,751.81
DIVISION:
❑ Administration ® Engineering ❑ Operations ❑ Sewer ❑ Water ❑ Irrigation ❑ Treatment Plants ❑ Reuse ❑ Other
AGREEMENT TOPIC & BACKGROUND:
The Columbia East Pump Station project involves the construction of a regional industrial pump station located
east of downtown Pasco, at the intersection of the Pasco-Kahlotus Highway and Commercial Avenue.
This contract represents the first stage of a two-stage project and will have 180 working days for completion.
Council Approval — September 17, 2018
*Budget amendment planned prior to the end of 2018
CONTRACT SELECTION PROCESS:
❑ Consultant Roster ❑ RFQ ® Formal Bid ❑ Small Works Roster ❑ Negotiated ❑ N/A or Other
BUDGET/FINANCIAL IMPACTS: �,,,l,,a,1 1';7v ,4-�xp'+
US EDA 2016 Grant $65,000
Preliminary Engineering (PE) $ 639,843
WA Dept Commerce - D. Approp. $2,575,000
0.09 Franklin Co. ED (2017 &2018) $1,000,000
Right -of -Way (RW) $675,328
City of Pasco - Debt Service $5,932,671
US EDA 2018 *planned $3,000,000
Construction CN 1,257,500
Total Funds Available $12,572,671
Total Est. Expenditures $ 12,572,671
CONTRACT EXPIRATION DATE: 180 working days
❑ Council action needed for future renewal
r 0 11 &UP,
oject anager Date
® Federal debarment/suspension re4iremerats met ❑ N/A
N/A
Legal Date
❑ Contract language ❑ Insurance coverage reviewed
® Performance & payment bond approval
ATTACHMENTS:
Contract with Clearwater Construction — 3 originals
INSURANCE EXPIRATION DATE: 5/1/2019
i
City Engineer Date
t0 1 Zv w
Fir6rici Dire or Date
❑ Funding source approval
DOCUMENT DISTRIBUTION AFTER SIGNED:
• Original to City Clerk with copy of blue sheet
• Original or Copy to vendor (their choice)
• Copy to Public Works Department
• Copy to Finance Department
0
CITY Or PASCO
CONTRACT
17003 COLUMBIA EAST PUMP STATION
Project No. CP9-SR-2A-17-01
STATE OF WASHINGTON
COUNTY OF FRANKLIN
This agreement and contract
iiC�ttl?�Ir-�r-sgl,�a+r`- 2018, by
hereinafter called the City and
hereinafter called the Contractor.
WITNESSETH:
)Ss
made and entered into in triplicate this day of
and between e City of Pasco a municipal corporation,
n-A-ru te r-, �6- O n,Wnw,,a )„ t- ; .I c ,
That whereas, the City has caused to be prepared certain plans and specifications for
improvements in and for the City of Pasco and the Contractor did on the day of
t�t✓ ems; 2018, file with the Office of the City Clerk of the City of Pasco, Washington,
a Proposal to furnish all equipment, labor, materials and appurtenances and to pay for the same,
and agreed to accept for and in full consideration of the sums fully stated and set forth in said
Proposal as full compensation for the completed work.
WHEREAS, the said plans, specifications and proposal fully and accurately described the terms
and conditions upon which the contractor proposes to furnish said equipment, labor, tools,
materials and appurtenances and perform work, together with the manner and time of furnishing
the same.
It is therefore agreed, first that a co y of said specifications, plans and proposal, filed as aforesaid
on the �] "O- day of ,l , 2018, be attached hereto and the same are hereby
made the items and conditions of this agreement by and between the City and Contractor in all
matters and things therein set forth and described; and further that the City and the Contractor
accept and agree to the terms and conditions of said plans, specifications and proposal as filed
as completely as if said terms and conditions and plans are herein set out in full.
In witness whereof the parties hereto have caused this agreement to be executed the day and
year herein above written this day of /S'/ , 2018.
CITY OF PASCO
BY:
-6cxo�
Dav Za
ATTEST:
Daniela E
Approved as to form:
City Attorney
Co tractor Signature
By: Printed Na
AUGUST 2018 Co- 1 17003 COLUMBIA EAST PUMP STATION
PROJECT No. CP9-SR-2A-17-01
CITY OF PASCO
Bond No. 106981467
PERFORMANCE BOND
BOND TO THE CITY OF PASCO
KNOW ALL MEN BY THESE PRESENTS:
That we, the undersigned, Clearwater Construction & Management, LLC
as principal, and Travelers Casualty and Surety Company of America a corporation
organized and existing under the laws of the State of Washington, as a surety corporation, and
qualified under the laws of the State of Washington to become surety upon bonds of contractors
with Municipal Corporations, as surety, are jointly and severally held and firmly bound to the City
of Pasco in the penal sum of ---Two Minion Six Hundred Sixty-nine Thousand_ for the payment of which sum
on demand we bind ourselves and our successors, heirs, administrators, or personal
representatives, as the case maybe. *Seven Hundred Fifty-one and 81/100--- ($2,669,751.81)
This obligation is entered into a pursuance of the statutes of the State of Washington, and
ordinances of the City of Pasco.
Dated at Spokane , Washington, this 21 st day of September , 2018.
Nevertheless, the conditions of the above obligation are such that:
WHEREAS, pursuant to action taken by the City Council of the City on September 17 _ 2018,
the Mayor and City Clerk of the City of Pasco have let or are about to let to the said
Clearwater Construction & Management, LLC , the above bounden principal, a certain contract, the same
contract being numbered CP9-SR-2A-17-01 and providing for 17003 COLUMBIA EAST
PUMP STATION (which contract is referred to herein and is made a part hereof as though
attached hereto).
WHEREAS, the said principal has accepted, or is about to accept the said contract, and undertake
to perform the work wherein provided for in the manner and within the time set forth.
NOW, THEREFORE, if the said Clearwater Construction & Management, LLC shall faithfully perform
all of the provisions of said contract in the manner and within the time therein set forth, or within
such extensions of the time as may be granted under the contract, and shall pay all laborers,
mechanics, subcontractors, and material men, and all persons who shall supply said principal or
subcontractors with provisions and supplies for the carrying on of said work, and shall indemnify
and hold said City of Pasco harmless from any loss or damage occasioned to any person or
property by reason of any carelessness or negligence on the part of said principal, or any
subcontractor in the performance of said work, and shall indemnify and hold the City of Pasco
harmless from any damage or expense by reason or failure of performance as specified in said
contract or from defects appearing or developing in the material or workmanship provided or
performed under said contract after its acceptance thereof by the City of Pasco, thea a- no irl that
event this obligations shall be void; but otherwise it shall be and remain in full force and effect.
Approved as to Form:
Trave - 9nsualt* and r Company of America
n
Surety Chris La n, ttorney-in-Fact
Cleate Constr t & Management, LLC
Contractor
AUGUST 2013 PB-- 1 17003 COLUMBIA EAST PUMP STATION
PROJECT No. CP9-SR-2A-17-01
Travelers Casualty and Surety Company of America
Adw Travelers Casualty and Surety Company
TRAVELERS J St. Paul Fire and Marine Insurance Company
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St.
Paul Fire and Marine Insurance Company are corporations duly organized under the laws of the State of Connecticut (herein collectively called the
"Companies"), and that the Companies do hereby make, constitute and appoint Chris Larson, of Spokane, Washington, their true and lawful
Attorney -in -Fact to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in
the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts
and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law.
IN WITNESS WHEREOF, the Companies have caused this instrument to be signed, and their corporate seals to be hereto affixed, this 3rd day of February,
2017.
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COWLt t {
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State of Connecticut
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By: _J
City of Hartford ss. Robert L. Raney, Se or Vice President
On this the 3rd day of February, 2017, before me personally appeared Robert L. Raney, who acknowledged himself to be the Senior Vice President of
Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, and
that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behalf of the corporations
by himself as a duly authorized officer.
In Witness Whereof, I hereunto set my hand and official seal.
a
My Commission expires the 30th day of June, 2021
0* *�y i Mane C. Tetreault, Notary Public
This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Travelers Casualty and
Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, which resolutions are now in
full force and effect, reading as follows:
RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any
Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys -in -Fact and
Agents to act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with
the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a
bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke
the power given him or her; and it is
FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice
President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation
is in writing and a copy thereof is filed in the office of the Secretary; and it is
FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional
undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior
Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant
Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary; or (b) duly executed (under seal, if required) by
one or more Attorneys -in -Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more
Company officers pursuant to a written delegation of authority; and it is
FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice
President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power
of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys -in -Fact for purposes only
of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such Power of Attorney or certificate bearing
such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile
signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding to which it is attached.
I, Kevin E. Hughes, the undersigned, Assistant Secretary of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety
Company, and St. Paul Fire and Marine Insurance Company, do hereby certify that the above and foregoing is a true and correct copy of the Power of
Attorney executed by said Companies, which remains in full force and effect.
Dated this 21st day of September , 2018
�yi,1:M(rj, O*�ZY ANps
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Kevin E. Hughes, Assi. tant Secretary
To verify the authenticity of this Power ofAttorney, please call us at 1-800-421-3880.
Please refer to the above-named Attorney -in -Fact and the details of the bond to which the power is ahtached.
WILLBRO-02 BSOU
ACORO` CERTIFICATE OF LIABILITY INSURANCE
DATE 09/25/2018Y)
��- 09/2512018
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.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) 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).
PRODUCER AME,
Spokane Office PHONE
Paynewest Insurance, Inc. ,vc, NNE. Ext : (509 838-3501 FAX No):(509) 838-3511
501 N. Riverp,int Blvd., Ste 403 E-MAIL
Spokane, WA 99202 INSURER(S) AFFORDING COVERAGE NAIC
INSURED I INSURER B: The
Clearwater Construction & Management LLC
5711 W. Garden Springs Road
Spokane, WA 99224
INSURER F:
•�n�n. RPVI_CInN NIIMRFR'
COVERAGES %'r_M I irn.r+r r_ nUIno�n. -- — — 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.
INSR
TYPE OF INSURANCE
ADDL
SUBR
POLICY NUMBER
POLICY EFF
pfDDIYYM
•85,101/2018
POLICY EXP
05F01/3019
LIMITS
A
X COMMERCIAL GENERAL LIABILITY
GtA1MS-MADE � OCCUR
X
X
ACEP308380
EACH OCCURRENCE $ 1'000'000
DAMM 3ET0 RENCED n� $ 300,000
25,
MED EXP (Any oneperson) $
,000
PERSONAL & ADV INJURY $ 1'00000'000
�
GEN'L AGGREGATE LIMIT APPLIES PER:
X POLICY PRO ❑ LOC
JECT
GENERAL AGGREGATE 2,000,000
PRODUCTS - COMP/OP AGG $ 2'000'000
STOP GAP WA 1,000,000
B
OTHER:
AUTOMOBILE LIABILITY
I
Ea aci den SINGLE LIMIT $ 1,000,000
BODILY INJURY Perperson) $
X ANY AUTO
X
X lEBA0248370
05/01/2018
05/01/2019
BODILY INJURY Per accident $
OWNED SCHEDULED
AUTOS ONLY AUTOS
HIRED NON -OWNED
AUTOS ONLY AUTOS ONLY
PROPERTY AMAGE
Per accident $
C
X
UMBRELLA LIAB
EXCESS LIAB
X
OCCUR
CLAIMS -MADE
EXC308331
05/01/2018
05101/2019
EACH OCCURRENCE $ 9'000'000
AGGREGATE
DED I X I RETENTION $ 0
COMPENSATION
AND
AND EMPLOYERS' LIABILITY Y I N
ANY PROPRIETOR/PARTNER/EXECUTIVE
PER 0A
'TTE EAT
E.L. EACH ACCIDENT
E.L. DISEASE - EA EMPLOYE
Mandatory in E 'EXCLUDED? a
NIA,
DISEASE -POLICY LIMIT
1,000,000
A
If yes, describe under
DESCRIPTION OF OPERATIONS belowE.L.
Pollution
PACEP308380
05/01/2018
05101/2019
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
RE: 17003 Columbia East Pump Station / Project No. CP -9 -SR -2A-17-01
City of Pasco, The Contracting Agency and its officers, elected officials, employees, agents and volunteers are additional insured as per the attached forms.
Coverage is primary and non-contributory. Waiver of subrogation and per project aggregate applies per attached forms.
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
City of Pasco ACCORDANCE WITH THE POLICY PROVISIONS -
Public Works/Engineering Division
PO Box 293
Pasco, WA 99301 AUTHORIZED REPRESENTATIVE
)S
ACORD 25 (2016/03) nn 4jwlma
The ACORD name and logo are registered marks of ACORD
(2) Property damage or environmental: damage to property:
(a) Owned, occupied or used by; or
(b) Rented to, in the care, custody or control of, or over which physical
control is being exercised for any purpose by you, any of your
employees, volunteer workers, any partner or member (if you are a
partnership or joint venture), or any member (if you are a limited
liability company).
b. Any person (other than your employee or volunteer worker), or any
organization while acting as your real estate manager.
C. Any person or organization having proper temporary custody of your property if
you die, but only:
(1) With respect to liability arising out of the maintenance or use of that
property; and
(2) Until your legal representative has been appointed.
d. Your legal representative if you die, but only with respect to duties as such. That
representative will have all your rights and duties under this Policy.
3. Any subsidiary, associated, affiliated or allied company or corporation, including
subsidiaries thereof, of which you have more than 50% ownership interest as of the
inception date is a Named Insured; however, such entities shall cease to be a Named
Insured if you cease to maintain more than a 50% ownership interest.
4. Any organization you newly acquire or form, other than a partnership, joint venture or
limited liability company, and over which you maintain ownership or majority interest, will
qualify as a Named Insured if there is no other similar insurance available to that
organization. However:
a. Coverage under this provision is afforded only until the 180th day after you
acquire or form the organization or the end of the policy period, whichever is
earlier;
b. Coverage under this Policy does not apply to any bodily injury, property
damage, environmental damage or pollution condition that took place, or an
offense or wrongful act committed, before you acquired or formed the
organization.
5. Any person or organization wi-r, whoa you agree to include as ars insured pursuant to a
written} contract.. written agrecme^•t or permit is an insured, but: (i) only with respect to
bodily injury, property damage. personal and advertising injury, environmental
damage or clean-up costs caused �n whole car in part, by your acts or omissions or the
acts or ornissions of triose acting on your behalf and arising out of your operations, your
work, equ`pn-grit or premises leased. rented or owned by yo:.:. or your products which
are distrl'buted or suld in the regular course of a uelidor's business-. (is) oniy for the
lesser of the applicable limits of liability set forth in section XXI. LIMITS OF LIABILITY
AND DEDUCTIBLE or the minimum limits of liability required by such writ'en con'Tract;
(iii) the insurance afforded only applies to the extent permitted by law; (iv) the insurance
afforded will not be broader than that which you are required by the contract or
agree went to -ovirc for such insured. However•
EPACE001-0415 Page 135
7. Solely with respect to Coverage 1F (Employee Benefits Administration Liability), each of
the following is an insured:
a. Each of your employees who is or was authorized to administer your employee
benefits program.
b. Any persons, organizations or employees having proper temporary
authorization to administer your employee benefits program if you die, but
only until your legal representative is appointed.
8. Your legal representative if you die, but only with respect to duties as such. That
representative will have all your rights and duties under this Policy.
No person or organization is an insured with respect to the conduct of any current or
past partnership, joint venture or limited liability company that is not shown as a Named
Insured in the Declarations.
Applicable to Coverage 3 — Professional' t_iabtity
The following person(s) or entity(ies) are an insured under Coverage 3 - Professional
Liability:
1. the first named insured and other named insured(s) expressly added to Item 1 of the
Declarations;
2. any of your current or former directors, officers, partners, members, employees, or
shareholders, as applicable, while acting within the scope of his or her duties as such,
but only while rendering professional services on behalf of a named insured; and
3. the estate, heirs, executors, administrators and legal representatives of each named
insured in the event of death, incapacity or bankruptcy of such insured, but only with
respect to liability arising out of professional services rendered by a named insured
prior to such death, incapacity or bankruptcy, and only to the extent that coverage would
have been provided under Coverage 3 - Professional Liability.
XXI. LIMITS OF LIABILITY AND DEDUCTIBLE
Regardless of the number of claims, suits, claimants or insureds, the following limits of
liability apply:
1. Limits applicable to Part 1 Coverages
a. General Aggregate Limit and General Aggregate Cap
(1) The General Aggregate Limit set forth in Item 3 of the Declarations is the
most we will pay for all loss under all Part 1 Coverages except: (i)
damages because of bodily injury, property damage or environmental
damage included in the products -completed operations hazard, and (ii)
crisis management costs that result from a crisis management event
arising directly from your product.
(2) Subject to subparagraph (3) below, the General Aggregate ate Li"t app es
separa>lety to:
EPACE001-0415 Page 137
(a) toss covered under Coverages 1A and 1 E arising from
occurrences at any one location that you own or rent; and
(b) loss covered under Coverages 1 A and 1 E arising from your on-
going operations at any one job site.
(3) Regardless of the number of locations or job sites, the General
Aggregate Cap set forth in Item 3 of the Declarations is the most we will
pay for all loss under all Part 1 Coverages except: (i) damages because of
bodily injury, property damage or environmental damage included in
the products -completed operations. hazard, and (ii) crisis
management costs that result from a crisis management event arising
directly from your product.
b. Products—Completed Operations Aggregate Limit
The Products -Completed Operations Aggregate Limit set forth in Item 3 of the
Declarations is the most we will pay for all: (i) damages under Coverages 1 A
and 1 D because of bodily injury, property damage or environmental
damage included in the products -completed operations hazard, and (ii)
crisis management costs that result from a crisis management event arising
directly from your product.
C. Each Occurrence Limit
Subject to Paragraph 1.a. or 1.b. above, whichever applies, the Each
Occurrence Limit set forth in Item 3 of the Declarations is the most we will pay
for all loss under Coverages 1 A, i C. 1 D and 1 E arising out of the same,
related, continuous or repeated occurrence(s) or pollution condition(s).
d. Personal and Advertising Injury Limit
Subject to Paragraph 1.a. above, the Personal and Advertising Injury Limit set
forth in Item 3 of the Declarations is the most we will pay for all loss under
Coverage 1 B sustained by any one .person or organization.
e. Employee Benefits Administration Limit
Subject to Paragraph 1.a. above, the Employee Benefits Administration Limit of
Liability set forth in Item 3 of the Declarations is the most we will pay under
Coverage 1 F for all loss sustained by any one employee, including loss
sustained by such employee's dependents and beneficiaries, arising out of the
same, related, continuous or repeated wrongful act(s).
However, the amount paid under this Policy shall not exceed, and will be subject
to, the limits and restrictions that apply to the payment of benefits in any plan
included in the employee benefits program.
f. Crisis Management Costs Limit — Coverage 1 G
Subject to Paragraph 1.a. or 1.b. above, whichever applies, the Crisis
Management Costs Limit set forth in Item 3 of the Declarations is the most we
will pay for all crisis management costs under Coverage 1 G.
g. Damage to Premises Rented to You Limit
Subject to Paragraph 1.c. above, the Damage to Premises Rented to You Limit
set forth in Item 3 of the Declarations is the most we will pay under Coverage 1A
for all toss because of property damage to any one premises, while rented to
EPACE001-0415 Page 138
where the claim arose or is being defended. in addition, we may exercise our right to
require that such counsel:
a. meet certain minimum qualifications with respect to competency, including
possessing a minimum of five (5) years experience in defending claims similar
to those asserted against the insured;
b. maintain suitable errors and omissions insurance coverage; and
C. agree, in writing, to respond in a timely manner to our requests for information
regarding the claim.
An insured may, at any time, waive any right it may have to select independent
counsel.
13. Inspection and Audit
With reasonable notice to you, we shall be permitted, but not obligated, to inspect,
sample and monitor on a continuing basis your property, equipment and/or operations.
Neither our right to make inspections, sample and monitor, nor the actual undertaking
thereof, nor any report thereon shall constitute an undertaking, on behalf of or for the
benefit of you or others, to determine or warrant that such property or operations are
safe, healthful or conform to acceptable engineering practice or are in compliance with
environmental laws, or any other law, rule or regulation. Further, the first named
insured agrees on behalf of all insureds, to grant us both the right to interview, and
access to, any insured whom we reasonably believe may have relevant information
pertaining to any claim or pollution condition potentially covered under this Policy.
14. Other lnsurance
If other valid and collectible insurance is available for any loss subject to coverage
under this Policy, our obligations are limited as follows:
a. Primary Insurance
Except as provided in paragraph b. below, this insurance is primary. When this
insurance is primary, our obligations are'not affected unless any of the other
insurance is also primary, in which case we will share with all other primary
insurance by the method described in paragraph c. below. However, in the
event that a written contract, written agreement or permit requires this insurance
to be primary for any person or organization that you agreed to insure, and
provided such person or organization is an insured under this Policy, this
insurance will be primary and we will not seek contribution from any other
insurance issued to such person or organization.
b. Excess Insurance
This insurance is excess over:
(1) Any other insurance, whether primary, excess, contingent or on any other
basis that is: (i) Fire, Extended Coverage, Builder's Risk, installation Risk or
similar coverage for your work; (ii) Fire insurance for premises rented to
you or temporarily occupied by you with permission of the owner; (iii)
insurance purchased by you to cover your liability as a tenant for property
damage to premises rented to you or temporarily occupied by you with
permission of the owner; or (iv) insurance applicable to loss arising out of
the maintenance or use of aircraft, autos or watercraft;
EPACE001-0415 Page 145
Misrepresentation or concealment by one insured shall not prejudice the interest
or coverage for another insured under this Policy, except where such latter
insured is a parent, subsidiary, or affiliate of the insured that committed such
misrepresentation or concealment. For the purposes of this condition, an
"affiliate" means an entity that directly or indirectly is controlled by, or is under
common control with, the insured that committed such misrepresentation or
concealment. Notwithstanding the forgoing, nothing stated herein shall preclude
us from seeking and obtaining rescission of this Policy in the event of a material
misrepresentation in the application for insurance. In addition, nothing stated
herein shall operate to increase the limit(s) of liability provided hereunder.
16. Sole Agent
The first named insured shalt act on behalf of all insureds for the payment of the
Deductible, payment or return of premium, receipt and acceptance of any endorsement
issued to form a part of this Policy, giving and receiving notice of cancellation, and the
exercise of the rights provided in section XXIV. EXTENDED REPORTING PERIODS.
17. Subrogation
in the event of any payments made pursuant to this Policy, we shall be subrogated to
any insured's rights of recovery against any person, entity or organization. The insured
shall execute and deliver instruments and papers and do whatever is necessary to
secure and perfect such rights. No insured shall do anything to prejudice such rights.
Any recovery obtained as a result of subrogation, after such expenses incurred in the
subrogation proceedings are deducted by us, shall accrue first to the insured to the
extent of any payments in excess of the Limit of Liability, then us to the extent of any
payments made under this Policy; and then to the insured to the extent of its Deductible.
However. solely with respect to Coverage Part 1 or Coverage Part 2, if the insured has
waived rights of recovery against any person, entity or organization prior to a loss or
claim, we waive any right to recovery we may have under the policy atga"nst such
person, entity or organization.
18. Voluntary Payments
The insured shall not settle any claim or suit or, with the exception of emergency
expenses, make any voluntary payments without our prior written consent. If we
recommend a settlement, the insured shall have the opportunity to consent to it, such
consent not to be unreasonably withheld or delayed. If we recommend a settlement that
is acceptable to a claimant for a total amount in excess of the applicable Deductible and
within the applicable Limits of Liability and the insured refuses to consent to such
settlement, then our liability for loss shall be limited to that portion of the recommended
settlement, and the legal defense costs incurred as of the date of the insured's refusal,
which exceeds the Deductible and falls within the applicable Limit of Liability.
XXIV. EXTENDED REPORTING PERIODS
This section XXIV. applies to Coverages 2C, 2D and 3 only.
We will provide one or more Extended Reporting Periods, as described below, if this
Policy is terminated for any of the following reasons:
a. Cancellation by us for any reason other than failure to pay a premium when due
or fraud or material misrepresentation;
EPACE001-0415 Page 147
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CinciPlus®
BUSINESS AUTO XC+®
(EXPANDED COVERAGE PLUS)
ENDORSEMENT
This endorsement modifies insurance provided by the following:
BUSINESS AUTO COVERAGE FORM
With respect to the coverage provided by this endorsement, the provisions of the Coverage Form apply unless
modified by this endorsement.
A. Blanket Waiver of Subrogation
SECTION IV - BUSINESS AUTO CONDI-
TiONS, A. Loss Conditions, S. Transfer of
Rights of Recovery Against Others to Us is
amended by the addition of the following:
We waive any right of recovery we may have
against any person or organization because of
payments we make for "bodily injury" or
"property damage" arising out of the operation
of a covered "auto" when you have assumed
liability for such "bodily injury" or "property
damage" under an "insured contract", provid-
ed the "bodily injury" or "property damage" oc-
curs subsequent to the execution or the "in-
sured contract".
B. Noncontributory Insurance
SECTION iV - BUSINESS AUTO CONDI-
TIONS, B. General Conditions, S. Other In-
surance c. is replaced by the following:
c. Regardless of the provisions of Par-
agraph a. above, this Coverage
Form's Liability Coverage is primary
and we will not seek contribution
from any other insurance for any lia-
bility assumed under an "insured
contract" that requires liability to be
assumed on a primary noncontributo-
ry basis.
C. Additional insured by Contract
SECTION II - LIABiLITi( COVERAGE, A.
Coverage, 1. Who is an Insured is amended
to include as an insured any person or organi-
zation with which you have agreed in .a valid
written contract to provide insurance as is af-
forded by this policy.
This provision is limited to the scope of the
valid written contract.
This provision does not apply unless the valid
written contract has been:
1. Executed prior to the accident causing
"bodily injury" or "property damage"; and
2. Is still in force at the time of the "accident"
causing "bodily injury" or "property dam-
age".
D. Employee Hired Auto
1. Changes in Liability Coverage
The following is added to the Section II -
Liability Coverage, A. Coverage, 1.
Who is an Insured:
An "employee" of yours is an "insured"
while operating an "auto" hired or rented
under a contract or agreement in that
"employee's" name, with your permission,
while performing duties related to the
conduct of your business.
2. Changes in Generai Conditions
SECTION IV - BUSINESS AUTO CON-
DITIONS, B. General Conditions, 5.
Other Insurance is amended by replac-
ing Paragraph 5.b. with the following:
b. For Hired Auto Physical Damage
Coverage the following are deemed
to be covered "autos" you own:
(1) Any covered "auto" you lease.
hire, rent or borrow; and
(2) Any covered "auto" hired or
rented byyour "employee" under
a contract in that individual "em-
ployee's" name, with your per-
mission, while performing duties
related to the conduct of your
business.
Includes copyrighted material of ISO
AA 288 01 16 Properties, inc., with its permission. Page 1 of 4
However, any "auto" that is leased,
hired, rented or borrowed with a driver
is not a covered "auto".
E. Audio, Visual and Data Electronic Equip-
ment
SECTION IiI - PHYSICAL DAMAGE COV-
ERAGE, C. Limit of Insurance is amended
by adding the following:
4. The most we will pay for all "loss" to au-
dio, visual or data electronic equipment
and any accessories used with this
equipment as a result of any one "acci-
dent" is the lesser of.
a. The actual cash value of the dam-
aged or stolen property as of the time
of the "accident";
b. The cost of repairing or replacing the
damaged or stolen property with oth-
er property of like kind and quality; or
c. $2,500.
Provided the equipment, at the time of the
"loss" is:
a. Permanently installed in or upon the
covered "auto" in a housing, opening
or other location that is not normally
used by the "auto" manufacturer for
the installation of such equipment;
b. Removable from a permanently in-
stalled housing unit as described in
Paragraph 2.a. above; or
c. An integral part of such equipment.
F. Who is an Insured - Amended
SECTION 11 - LIABILITY COVERAGE, A.
Coverage, 1. Who is an insured is amended
by adding the following:
The following are "insureds":
1. Any subsidiary which is a legally incorpo-
rated entity of which you own a f"inanciai
interest of more than 50% of the voting
stock on the effective date of this cover-
age form.
However, the insurance afforded by this
provision does not apply to any subsidiary
that is an "insured" under any other au-
tomobile liability policy, or would be an
"Insured" under such policy but for termi-
nation of such policy or the exhaustion of
such policy's limits of insurance.
2. Any organization that is newly acquired or
formed by you and over which you main-
tain majority ownership. The insurance
provided by this provision:
a. Is effective on the date of acquisition
or formation, and is afforded for 180
days after such date;
b. Does not apply to "bodily injury" or
"property damage" resulting from an
"accident" that occurred before you
acquired or formed the organization;
c. Does not apply to any newly acquired
or formed organization that is a joint
venture or partnership; and
d. Does not apply to an insured under
any other automobile liability policy,
or would be an insured under such a
policy but for the termination of such
policy or the exhaustion of such poli-
cy's limits of insurance.
3. Any of your "employees" while using a
covered "auto" in your business or your
personal affairs, provided you do not own,
hire or borrow that "auto".
G. Liability Coverage Extensions - Supple-
mentary Payments - Higher Limits
SECTION 11 - LIABILITY COVERAGE, A.
Coverage, 2. Coverage Extensions, a. Sup-
plementary Payments is amended by:
1. Replacing the $2,000 Limit of Insurance
for bail bonds with $4.000 in (2); and
2. Replacing the $250 Limit of Insurance for
reasonable expenses with $500 in (4).
H. Amended Fellow Employee Exclusion
SECTION 11 - LIABILITY COVERAGE, B. Ex-
clusions, S. Fellow Employee is modified as
follows:
Exclusion S. Fellow Employee is deleted.
1. Hired Auto - Physical Damage
If hired "autos" are covered "autos" for Liability
Coverage, then Comprehensive and Collision
Physical Damage Coverages as provided un-
der SECTION 111 - PHYSICAL DAMAGE
COVERAGE of this Coverage Part are ex-
tended to "autos" you hire, subject to the fol-
lowing:
1. The most we will pay for "loss" to any
hired "auto" is $50,000 or the actual cash
value or cost to repair or replace, which-
ever is the least, minus a deductible.
2. The deductible will be equal to the largest
deductible applicable to any owned "auto"
for that coverage, or $1,000, whichever is
less.
3. Hired Auto - Physical Damage coverage
is excess over any other collectible insur-
ance.
Includes copyrighted material of ISO
AA 288 01 16 Properties, Inc., with its permission. Page 2 of 4
4. Subject to the above limit, deductible, and
excess provisions we will provide cover-
age equal to the broadest coverage appli-
cable to any covered "auto" you own in-
sured under this policy.
Coverage includes loss of use of that hired au-
to, provided it results from an "accident" for
which you are legally liable and as a result of
which a monetary loss is sustained by the
leasing or rental concern. The most we will
pay for any one "accident" is $3,000.
If a limit for Hired Auto - Physical Damage is
shown in the Schedule, then that limit replac-
es, and is not added to, the $50,000 limit indi-
cated above.
J. Rental Reimbursement
SECTION III - PHYSICAL DAMAGE is
amended by adding the following:
1. We will pay for rental reimbursement ex-
penses incurred by you for the rental of
an "auto" because of a "loss" to a covered
"auto". Payment applies in addition to the
otherwise applicable amount of each cov-
erage you have on a covered "auto". No
deductible applies to this coverage.
2. We will pay only for those expenses in-
curred during the policy period beginning
24 hours after the "loss" and ending, re-
gardless of the policy's expiration, with
the lesser of the following number of
days:
a. The number of days reasonably re-
quired to repair the covered "auto". If
"loss" is caused by theft, this number
of days is added to the number of
days it takes to locate the covered
"auto" and return it to you; or
b. 30 days.
3. Our payment is limited to the lesser of the
following amounts:
a. Necessary and actual expenses in-
curred; or
b. $50 per day.
4. This coverage does not apply while there
are spare or reserve "autos" available to
you for your operations.
K. Transportation Expense - Higher Limits
SECTION III - PHYSICAL DAMAGE COV-
ERAGE, A. Coverage, 4. Coverage Exten-
sions is amended by replacing $20 per day
with $50 per day, and $600 maximum with
$1,500 maximum in Extension a. Transpor-
tation Expenses.
L. Airbag Coverage
SECTION 111 - PHYSICAL DAMAGE COV-
ERAGE, B. Exclusions, 3.a. is amended by
adding the following:
However, the mechanical and electrical
breakdown portion of this exclusion does not
apply to the accidental discharge of an airbag.
This coverage for airbags is excess over any
other collectible insurance or warranty.
M. Loan or Lease Gap Coverage
1. SECTION III - PHYSICAL DAMAGE
COVERAGE, C. Limit of Insurance is
deleted in its entirety and replaced by the
following. but only for private passenger
type "autos" with an original loan or lease,
and only in the event of a "total loss" to
such a private passenger type "auto":
a. The most we will pay for "loss" in any
one "accident" is the greater of:
(1) The amount due under the terms
of the lease or loan to which
your covered private passenger
type "auto" is subject. but will not
include:
(a) Overdue lease or loan pay-
ments;
(b) Financial penalties imposed
under the lease due to high
mileage, excessive use or
abnormal wear and tear;
(c) Security deposits not re-
funded by the lessor;
(d) Costs for extended warran-
ties, Credit Life Insurance,
Health, Accident or Disabil-
ity Insurance purchased
with the loan or lease; and
(e) Carry-over balances from
previous loans or leases, or
S. We will pay under this coverage only that (2) Actual cash value of the stolen
amount of your rental reimbursement ex-
penses which is not already provided for or damaged property.
under SECTION III - PHYSICAL DAM- b, An adjustment for depreciation and
AGE COVERAGE, A. Coverage, 4. physical condition will be made in de -
Coverage Extensions, termining actual cash value at the
time of "loss".
Includes copyrighted material of ISO
AA 288 01 16 Properties, Inc., with its permission. Page 3 of 4
2. SECTION V - DEFINITIONS is amended
by adding the following, but only for the
purposes of this Loan or Lease Gap
Coverage:
"Total loss" means a "loss" in which the
cost of repairs plus the salvage value ex-
ceeds the actual cash value.
N. Glass Repair - Waiver of Deductible
SECTION III - PHYSICAL DAMAGE COV-
ERAGE, D. Deductible is amended by adding
the following:
No deductible applies to glass damage if the
glass is repaired in a manner acceptable to us
rather than replaced.
O. Duties in the Event of an Accident, Claim,
Suit or Loss - Amended
SECTION IV - BUSINESS AUTO CONDI-
TIONS, A. Loss Conditions, 2. Duties in the
Event of Accident, Claim, Suit or Loss, a. is
amended by adding the following:
This condition applies only when the "acci-
dent" or "loss" is known to:
1. You, if you are an individual;
2. A partner, if you are a partnership;
3. An executive officer or insurance manag-
er, if you are a corporation; or
4. A member or manager, if you are a lim-
ited liability company.
P. Unintentional Failure to Disclose Hazards
SECTION IV - BUSINESS AUTO CONDI-
TIONS, B. General Conditions, 2. Conceal-
ment, Misrepresentation or Fraud is
amended by adding the following:
However, if you unintentionally fail to disclose
any hazards existing on the effective date of
this Coverage Form, we will not deny cover-
age under this Coverage Form because of
such failure.
Q. Mental Anguish Resulting from Bodily Inju-
ry
SECTION V - DEFINITIONS, C. "Bodily inju-
ry" is deleted in its entirety and replaced by
the following:
"Bodily injury" means bodily injury, sickness or
disease sustained by a person, including men-
tal anguish and death sustained by the same
person that results from such bodily injury,
sickness or disease. 'Bodily injury" does not
include mental anguish or death that does not
result from bodily injury, sickness or disease.
R. Coverage for Certain Operations in Con-
nection with Railroads
With respect to the use of a covered "auto" in
operations for or affecting a railroad:
1. Section V - Definitions, H. "Insured con-
tract". 1.c. is amended to read:
c. An easement or license agreement;
2. Section V - Definitions, H. "Insured con-
tract", 2.a. is deleted.
Includes copyrighted material of ISO
AA 288 01 16 Properties, Inc., with its permission. Page 4 of 4