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3. INSPECTION: The City or its agents may inspect and/or repair the Facility at all <br /> reasonable times,but this right will impose no obligation upon the City to make inspections <br /> or repairs except as provided for elsewhere herein. <br /> 4. SERVICES PROVIDED BY CONTRACTOR: Subject to the terms of this Agreement, <br /> Contractor as an independent contractor, shall have the sole and exclusive right to manage <br /> the Facility, subject to the consultation rights of City provided for in the Agreement. <br /> Contractor shall manage, operate and maintain the Facility on behalf of the City in a <br /> generally accepted business-like manner consistent with both parties' objective of <br /> operating a high-quality golf facility that is available to the golfing public and as set forth <br /> in the attached scope of work, which is hereby incorporated into this Agreement ("Scope <br /> of Work"). These services shall include the management, operation, and custodial <br /> maintenance of the Facility. Contractor agrees to operate the golf course facility in <br /> accordance with the City's Internal Control Manual,which is on file with the City's Clerk <br /> Office and Parks and Facilities Department. The City retains the right, subject to <br /> Contractor's review, to modify the Internal Control Manual as necessary to adjust for <br /> changes in administrative policy or operating conditions. <br /> 5. INSURANCE: Contractor shall, via its obligation to maintain insurance coverage as set <br /> forth herein, fully protect the City from any and all claims and risks in connection with its <br /> activity upon or use or occupation of the Facility,as well as any and all claims and risks in <br /> connection with any activity performed by Contractor by virtue of the rights granted <br /> pursuant to this Agreement. No cancellation provision of any insurance policy shall be <br /> construed in derogation of the continuous duty of Contractor furnish the required insurance <br /> during the term of this Agreement. In case of the breach of any provision of this Section, <br /> the City may, at its option, provide and maintain at the expense of Contractor such types <br /> of insurance in the name of Contractor as the City may deem proper, and may deduct the <br /> cost of providing and maintaining such insurance from any sums which may be found or <br /> become due to Contractor under this Agreement, or may demand Contractor to promptly <br /> reimburse the City for such cost. Notwithstanding any provision in this Agreement, the <br /> failure of Contractor to comply with the above provisions of this Section shall,at the City's <br /> option, subject this Agreement to immediate termination without notice to any party in <br /> order to protect the public interest. <br /> Contractor shall comply with the following conditions and procure and keep in force during <br /> the term of this Agreement, as a reimbursable Direct Cost, the following policies of <br /> insurance with companies authorized to do business in the State of Washington,which are <br /> rated at least "A" or better and with a numerical rating of no less than 7, by A.M. Best <br /> Company and which are acceptable to the City. Upon written request by the City, the <br /> insurer or his/her agent will furnish, prior to or during any work being performed under <br /> this Agreement, a copy of any policy cited below, certified to be a true and complete copy <br /> of the original. Each of the policies below shall contain a provision that the policy shall <br /> not be canceled or materially changed without 30 days prior written notice to the City of <br /> Everett.To the extent that any of the required insurance is provided on a claims-made basis, <br /> Contractor shall purchase a "tail" to insure that such coverage will survive the termination <br /> of this Agreement for at least three (3)years following the date of termination. <br /> A. Workers' Compensation Insurance the State of Washington,with Statutory Limits, <br /> and Employer's Liability Insurance with limits of no less than $1,000,000 per <br /> 2 <br />