2003/04/09 Council Agenda Packet

rules set forth in the Internal Revenue Code. The Business arrangements in this - Agreement are designed to maintain compliance with the Internal Revenue Code's private activity rules. In the event the business conditions upon which this Agreement are structured vary in such a manner that the fixed and/or variable fee structures in Section 7 of this Agreement become at risk of violating the private activity rules, both parties agree to negotiate appropriate modifications to the Agreement in order to maintain compliance. 8. INSURANCE: BCG shall, via its obligation to maintain insurance coverage as set forth herein, fully protect the City from any and all claims and risks in connection with its activity upon or use or occupation of the Facility, as well as any and all claims and risks in connection with any activity performed by BCG by virtue of the rights granted pursuant to this Agreement. No cancellation provision of any insurance policy shall be construed in derogation of the continuous duty of BCG to furnish the required insurance during the term of this Agreement. In case of the breach of any provision of this Section, the City may, at its option, provide and maintain at the expense of BCG, such types of insurance in the name of BCG as the City may deem proper, and may deduct the cost of providing and maintaining such insurance from any sums which may be found or become due to BCG under this Agreement, or may demand BCG to promptly reimburse the City for such cost. Notwithstanding any provision in this Agreement, the failure of BCG to comply with the above provisions of this Section shall subject this Agreement to immediate termination without notice to any party in order to protect the public interest. BCG shall comply with the following conditions and procure and keep in force during the term of this Agreement, at BCG's own cost and expense, the following policies of insurance with companies authorized to do business in the State of Washington, which are rated at least "A" or better and with a numerical rating of no less than 7,by A.M. Best Company and which are acceptable to the City. Upon written request by the City, the insurer or his/her agent will furnish, prior to or during any work being performed under this Agreement, a copy of any policy cited below, certified to be a true and complete copy of the original. Each of the policies below shall contain a provision that the policy shall not be canceled or materially changed without 30 days prior written notice to the City of Everett. To the extent that any of the required insurance is provided on a claims- made basis; BCG shall purchase a "tail" to insure that such coverage will survive the termination of this Agreement for at least three (3) years following the date of termination. A. Workers' Compensation Insurance as required by Washington law and Employer's Liability Insurance with limits of no less than $1,000,000 per occurrence. If sublet work is authorized by City, BCG shall require each subcontractor to provide Workers' Compensation Insurance for its employees, unless such employees are covered by BCG. BCG certifies that he/she is aware of the provisions of Title 51 of the Revised Code of Washington, which requires every employer to be insured against liability of Workers' compensation, or to undertake self-insurance in accordance with the provisions of that Title. BCG shall comply with the provisions of Title 51 of the Revised Code of Washington before commencing the performance of the work under this Agreement. BCG shall provide the City with evidence of Workers' Compensation Insurance (or 13