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201805020204
l When recorded, return to: City of Bremerton 1600 Oyster Bay Avenue South Bremerton, WA 98337 RECEIVED MAY 14 2018 City of Bremerton City Attorney's Office CITY OF BREMERTON 201805020204 Easement Rec Fee: $ 105.00 05/0212018 02:47 PM Page: 1 of 32 Dolores Gilmore, Kitsap Co Auditor M#L"Y 3.00ANX COA1Cvil bWR Of PUKK L'AND'S AQUATIC LANDS OUTFALL EASEMENT EASEMENT NO. 51-077352 Grantor: Washington State Department of Natural Resources Grantee(s): City of Bremerton Legal Description: Section 27, Township 24 North, Range 1 East, W.M. Assessor's Property Tax Parcel or Account Number: Not Applicable Assessor's Property Tax Parcel or Account Number for Upland parcel used in conjunction with this Easement: 222401-3-010-2003 THIS AGREEMENT is made by and between the STATE OF WASHINGTON, acting through the Department of Natural Resources ("State"), and City of Bremerton, a government agency ("Grantee"). BACKGROUND Grantee desires to use state-owned aquatic lands located in Kitsap County, Washington for the purpose of discharging effluent from an outfall pipeline. Grantee has obtained regulatory authorizations for this purpose including, but not limited to, a National Pollutant Discharge Elimination System ("NPDES") Permit. Aquatic Lands Outfall Easement (1/17) Page 1 of 32 Easement No. 51-077352 EXCISE TAX EXEMPT MAY 0 2 2018 State is willing to grant an easement for a term to Grantee in reliance upon Grantee's promises to operate the outfall in compliance with all laws and permits and in the manner as described in all regulatory authorizations. Nonetheless, State's goals are to promote water re -use and reduce reliance on in -water disposal of waste effluent, storm water and other discharges that affect the use and environmental conditions of state-owned aquatic lands and associated biological communities. Therefore, future grants of easement rights will depend on Grantee's satisfactory progress toward implementation of reasonably practical disposal alternatives. THEREFORE, the Parties agree as follows: SECTION 1 GRANT OF EASEMENT 1.1 Easement Defined. (a) State grants and conveys to Grantee a nonexclusive easement, subject to the terms and conditions of this agreement, over, upon, and under the real property described in Exhibit A. In this agreement, the term "Easement" means this agreement and the rights granted; the term "Easement Property" means the real property subject to the easement. (b) This Easement is subject to all valid interests of third parties noted in the records of Kitsap County, or on file in the Office of the Commissioner of Public Lands, Olympia, Washington; rights of the public under the Public Trust Doctrine or federal navigation servitude; and treaty rights of Indian Tribes. (c) This Easement does not include any right to harvest, collect or damage any natural resource, including aquatic life or living plants, any water rights, or any mineral rights, including any right to excavate or withdraw sand, gravel, or other valuable materials. 1.2 Survey and Easement Property Descriptions. (a) Grantee prepared Exhibit A, which describes the Easement Property. Grantee warrants that Exhibit A is a true and accurate description of the Easement boundaries and the improvements to be constructed or already existing in the Easement area. (b) Grantee shall not rely on any written legal descriptions, surveys, plats, or diagrams ("property description") provided by State. Grantee shall not rely on State's approval or acceptance of Exhibit A or any other Grantee -provided property description as affirmation or agreement that Exhibit A or other property description is true and accurate. Grantee's obligation to provide a true and accurate description of the Easement Property boundaries is a material term of this Easement. 1.3 Condition of Easement Property. State makes no representation regarding the condition of the Easement Property, improvements located on the Easement Property, the suitability of the Easement Property for Grantee's Permitted Use, compliance with governmental Aquatic Lands Outfall Easement (1/17) , Page 2 of 32 Easement No. 51-077352 laws and regulations, availability of utility rights, access to the Easement Property, or the existence of hazardous substances on the Easement Property. SECTION 2 USE 2.1 Permitted Use. Grantee shall use the Easement Property for: Municipal Wastewater Treatment Plant Outfall Pipe (the "Permitted Use"), and for no other purpose. The Permitted Use is described or shown in detail in Exhibit B. 2.2 Restrictions on Use. (a) Grantee shall not cause or permit any damage to natural resources on the Easement Property or adjacent state-owned aquatic lands, regardless of whether the damages are a direct or indirect result of the Permitted Use. (b) Unless approved by State in writing, Grantee shall not cause or permit any filling activity to occur on the Easement Property or adjacent state-owned aquatic land. This prohibition includes any deposit of rock, earth, ballast, wood waste, refuse, garbage, waste matter (including chemical, biological, or toxic wastes), hydrocarbons, any other pollutants, or other matter. Outfall discharges in full compliance with a valid NPDES Permit are not subject to this prohibition. (c) Grantee shall neither commit nor allow waste to be committed to or on the Easement Property or adjacent state-owned aquatic land. (d) Failure to Comply with Restrictions on Use. (1) Grantee's failure to comply with the restrictions on use under this Subsection 2.2 is a breach subject to Subsection 14.1. Grantee shall cure the breach by taking all steps necessary to remedy the failure and restore the Easement Property and adjacent state-owned aquatic lands to the condition before the failure occurred within the time for cure provided in Subsection 14.1. Additionally, Grantee shall mitigate environmental damages in accordance with Paragraph 2.2(d)(3). (2) If Grantee fails to cure the default in the manner described in this Paragraph 2.2(d), State may terminate in accordance with Subsection 14.1. In addition, the State may (1) restore the Easement Property and adjacent state-owned aquatic lands and charge Grantee remedial costs and/or (2) charge Grantee environmental damages. Upon demand by State, Grantee shall pay all remedial costs and environmental damages. (3) Mitigation of Environmental Damages (i) Grantee shall prepare a written plan, subject to State's approval, incorporating measures to (1) eliminate or minimize future impacts to natural resources, (2) replace unavoidable lost or damaged natural resource values, and (3) monitor and report on plan implementation. Grantee shall implement the plan upon State's approval. Aquatic Lands Outfall Easement (1/17) Page 3 of 32 Easement No. 51-077352 (ii) Grantee shall compensate State in accordance with Subsection 5.4 for lost or damaged resource values that are not replaceable. (iii) If a regulatory authority requires Grantee to provide mitigation on state-owned aquatic lands, Grantee shall coordinate the proposed mitigation activities with state and obtain an appropriate use authorization prior to commencement of activities. (e) State's failure to notify Grantee of Grantee's failure to comply with all or any of the restrictions set out in this Subsection 2.2 does not constitute a waiver of any remedies available to State. (f) This Section 2.2 does not limit Grantee's liability under Section 8, below. 2.3 Conformance with Laws. Grantee shall keep current and comply with all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes, and other government rules and regulations regarding its use of the Easement Property. 2.4 Liens and Encumbrances. Grantee shall keep the Easement Property free and clear of any liens and encumbrances arising out of or relating to its use of the Easement Property, unless expressly authorized by State in writing. 2.5 Interference with Other Uses. (a) Grantee shall exercise Grantee's rights under this Easement in a manner that minimizes or avoids interference with the rights of State, the public or others with valid right to use or occupy the Easement Property or surrounding lands and water. (b) To the fullest extent reasonably possible, Grantee shall place and construct Improvements in a manner that allows unobstructed movement in and on the waters above and around the Easement Property. (c) Except in an emergency, Grantee shall provide State with written notice of construction or other significant activity on Easement Property at least thirty (30) days in advance. "Significant Activity" means any activity that may affect use or enjoyment by the State, public, or others with valid rights to use or occupy the Easement Property or surrounding lands and water. (d) Grantee shall mark the location of any hazards associated with the Permitted Use and any Improvements in a manner that ensures reasonable notice to the public. 2.6 Amendment Upon Change of Permit Status. State reserves the right to amend the terms and conditions of this Easement whenever any regulatory authority (1) modifies a permit in a manner affecting the provisions of this Easement or (2) allows for a change in the manner of outfall operation including, but not limited to, a change in the type, quality, or quantity of discharge. SECTION 3 TERM 3.1 Term Defined. The term of this Easement is Thirty (30) years (the "Term"), beginning on the 1 st day of March 2018 (the "Commencement Date"), and ending on the 29th day of Aquatic Lands Outfall Easement (1/17) Page 4 of 32 Easement No. 51-077352 February, 2048 (the "Termination Date"), unless terminated sooner under the terms of this Easement. 3.2 Renewal of the Easement. (a) This Easement does not provide a right of renewal. Grantee may apply for a new Easement, which State has discretion to grant subject to requirements in Paragraph 3.2(b). Grantee must apply for a new Easement at least one (1) year prior to Termination Date and State will respond with denial or consent within ninety (90) days. 3.3 End of Term. (a) Upon the expiration or termination of this Easement, Grantee shall remove Improvements in accordance with Section 7, Improvements, and surrender the Easement Property to State restored to a condition substantially like its natural state before construction and operation of the outfall. (b) If Easement Property does not meet the condition described in Paragraph 3.3(a), the following provisions apply. (1) State shall provide Grantee a reasonable time to take all steps necessary to remedy the condition of the Easement Property. State may require Grantee to enter into a right of entry or other use authorization prior to the Grantee entering the Easement Property to remedy any breach of this Subsection 3.3. (2) If Grantee fails to remedy the condition of the Easement Property in a timely manner, State may take any steps reasonably necessary to remedy Grantee's failure. Upon demand by State, Grantee shall pay all costs of such remedial action, including but not limited to the costs of removing and disposing of any material deposited improperly on the Easement Property, lost revenue resulting from the condition of the Easement Property prior to and during remedial action, and any administrative costs associated with the remedial action. SECTION 4 FEES 4.1 Fee. For the Term, Grantee shall pay to State an administrative fee calculated in accordance with RCW 79.110.230(1) payable on or before the Commencement Date. Any payment not paid by State's close of business on the date due is past due. 4.2 Payment Place. Grantee shall make payment to Financial Management Division, 1111 Washington St SE, PO Box 47041, Olympia, WA 98504-7041. SECTION 5 OTHER EXPENSES 5.1 Utilities. Grantee shall pay all fees charged for utilities in connection with the use of the Easement Property. Aquatic Lands Outfall Easement (1/17) Page 5 of 32 Easement No. 51-077352 5.2 Taxes and Assessments. Grantee shall pay all taxes, assessments, and other governmental charges, of any kind whatsoever, applicable or attributable to the Easement and the Permitted Use. 5.3 Failure to Pay. If Grantee fails to pay any of the amounts due under this Easement, State may pay the amount due, and recover its cost in accordance with Section 6. 5.4 Environmental Damages. (a) If required to mitigate for environmental damage under Paragraph 2.2(d)(3)(ii), Grantee shall compensate State for lost or damaged resource values upon State's demand. The value of damages shall be determined in accordance with Paragraph 5.4(b� (b) Unless the Parties otherwise agree on the value, a three-member panel of appraisers will determine the measure of lost or damaged resource values. The appraisers shall be qualified to assess economic value of natural resources. State and Grantee each shall appoint and compensate one member of the panel. By consensus, the two appointed members shall select the third member, who will be compensated by State and Grantee equally. The panel shall base the calculation of damages on generally accepted valuation principles. The written decision of the majority of the panel shall bind the Parties. SECTION 6 LATE PAYMENTS AND OTHER CHARGES 6.1 Late Charge. If State does not receive any payment within ten (10) days of the date due, Grantee shall pay to State a late charge equal to four percent (4%) of the amount of the payment or Fifty Dollars ($50), whichever is greater, to defray the overhead expenses of State incident to the delay. 6.2 Interest Penalty for Past Due Fees and Other Sums Owed. (a) Grantee shall pay interest on the past due fees at the rate of one percent (1%) per month until paid, in addition to paying the late charges determined under Subsection 6.1, above. (b) If State pays or advances any amounts for or on behalf of Grantee, Grantee shall reimburse State for the amount paid or advanced and shall pay interest on that amount at the rate of one percent (1%) per month from the date State notifies Grantee of the payment or advance. This includes, but is not limited to taxes, assessments, insurance premiums, costs of removal and disposal of unauthorized materials pursuant to Subsection 2.2 above, costs of removal and disposal of improvements pursuant to Section 7 below, or other amounts not paid when due. 6.3 Referral to Collection Agency and Collection Agency Fees. If State does not receive payment within thirty (30) days of the due date, State may refer the unpaid amount to a collection agency as provided by RCW 19.16.500 or other applicable law. Upon referral, Grantee shall pay collection agency fees in addition to the unpaid amount. Aquatic Lands Outfall Easement (1/17) Page 6 of 32 Easement No. 51-077352 6.4 No Accord and Satisfaction. If Grantee pays, or State otherwise receives, an amount less than the full amount then due, State may apply such payment as it elects. No endorsement or statement on any check, any payment, or any letter accompanying any check or payment constitutes accord and satisfaction. SECTION 7 IMPROVEMENTS 7.1 Improvements Defined. (a) "Improvements," consistent with RCW 79.105 through 79.145, are additions within, upon, or attached to the land. This includes, but is not limited to, structures and fixtures. (b) "Personal Property" means items that can be removed from the Easement Property without (1) injury to the Easement Property, adjacent state-owned lands or Improvements or (2) diminishing the value or utility of the Easement Property, adjacent state-owned lands or Improvements. (c) "State -Owned Improvements" are Improvements made or owned by State. State - Owned Improvements includes any construction, alteration, or addition to State - Owned Improvements made by Grantee. (d) "Grantee -Owned Improvements" are Improvements made by Grantee with State's consent. (e) "Unauthorized Improvements" are Improvements made on the Easement Property without State's prior consent or Improvements made by Grantee that do not conform with plans submitted to and approved by the State. (f) "Improvements Owned by Others" are Improvements made by Others with a right to occupy or use the Easement Property or adjacent state-owned lands. 7.2 Existing Improvements. On the Commencement Date, the following Improvements are located on the Easement Property: 36 -inch diameter reinforced concrete pipe with a 120 -foot long diffuser with 20, 6.5 -inch ports. The Improvements are Grantee -Owned Improvements. 7.3 Construction, Major Repair, Modification, and Demolition. (a) This Subsection 7.3 governs construction, alteration, replacement, major repair, modification alteration, demolition and deconstruction of Improvements ("Work"). (b) Except in an emergency, Grantee shall not conduct any Work without State's prior written consent, as follows: (1) State may deny consent if State determines that denial is in the best interests of the State. State may impose additional conditions reasonably intended to protect and preserve the Easement Property. If Work is for removal of Improvements at End of Term, State may waive removal of any or all Improvements. (2) Except in an emergency, Grantee shall submit to State plans and specifications describing the proposed Work at least sixty (60) days before submitting permit applications to regulatory authorities unless Grantee and State otherwise agree to coordinate permit applications. At a Aquatic Lands Outfall Easement (1/17) Page 7 of 32 Easement No. 51-077352 minimum or if no permits are necessary, Grantee shall submit plans and specifications at least ninety (90) days before commencement of Work. (3) State waives the requirement for consent if State does not notify Grantee of its grant or denial of consent within sixty (60) days of submittal. (c) Grantee shall notify State of emergency Work within five (5) business days of the start of such Work. Upon State's request, Grantee shall provide State with plans and specifications or as-builts of emergency Work. (d) Grantee shall not commence or authorize Work until Grantee or Grantee's contractor has: (1) Obtained a performance and payment bond in an amount equal to one hundred twenty-five percent (125%) of the estimated cost of construction. Grantee shall maintain the performance and payment bond until Grantee pays in full the costs of the Work, including all laborers and material persons. (2) Obtained all required permits. (3) Provided notice of Significant Activity in accordance with Paragraph 2.5(c). (e) Grantee shall preserve and protect Improvements Owned by Others, if any (f) Grantee shall preserve all legal land subdivision survey markers and witness objects ("Markers.") If disturbance of a Marker will be a necessary consequence of Grantee's construction, Grantee shall reference and/or replace the Marker in accordance with all applicable laws and regulations current at the time, including, but not limited to Chapter 58.24 RCW. At Grantee's expense, Grantee shall retain a registered professional engineer or licensed land surveyor to reestablish destroyed or disturbed Markers in accordance with U.S. General Land Office standards. (g) Before completing Work, Grantee shall remove all debris and restore the Easement Property, as nearly as possible, to its natural condition before the Work began. If Work is intended for removal of Improvements at End of Term, Grantee shall restore the Easement Property in accordance with Subsection 3.3, End of Term. (h) Upon completing work, Grantee shall promptly provide State with as -built plans and specifications. (i) State shall not charge rent for authorized Improvements installed by Grantee during this Term of this Easement, but State may charge rent for such Improvements when and if the Grantee or successor obtains a subsequent use authorization for the Easement Property and State has waived the requirement for Improvements to be removed as provided in Subsection 7.4. (j) State will not approve plans to construct new Improvements or expand existing Improvements in or over habitats designated by State as important habitat. Grantee shall confirm location of important habitat on Property, if any, with State before submitting plans and specifications. (k) Grantee shall only conduct in -water Work during time periods authorized for such work under WAC 220-660-330, Authorized Work Times in Saltwater Areas, as amended, or as otherwise directed by the Washington Department of Fish and Wildlife (WDFW). Aquatic Lands Outfall Easement (1/17) Page 8 of 32 Easement No. 51-077352 7.4 (1) Grantee shall bury any new pipeline installation below the sediment surface within nearshore areas. Grantee -Owned Improvements at End of Easement. (a) Disposition (1) Grantee shall remove Grantee -Owned Improvements in accordance with Subsection 7.3 upon the expiration, termination, or cancellation of the Easement unless State waives the requirement for removal or State determines that abandonment of Improvements is in the best interests of State. (2) Grantee -Owned Improvements remaining on the Easement Property on the expiration, termination or cancellation date become State -Owned Improvements without payment by State, unless State elects otherwise. State may refuse or waive ownership. (3) If Grantee -Owned Improvements remain on the Easement Property after the expiration, termination, or cancellation date without State's consent, State may remove all Improvements and Grantee shall pay the costs of removal and disposal. (b) Determination of Removal or Abandonment. (1) State may waive removal of any or all Grantee -Owned Improvements whenever State determines that it is in the best interests of the State. State will consider it in the best interests of the State to waive removal where abandonment is less detrimental than removal to the long term use and management of state-owned lands and resources. (2) If Grantee renews the Easement or enters into a new Easement, State may waive requirement to remove Grantee -Owned Improvements. State also may consent to Grantee's continued ownership of Grantee -Owned Improvements. (3) If Grantee does not renew the Easement or enter into a new Easement, State and Grantee shall coordinate removal or abandonment as follows: (i) Grantee must notify State at least one (1) year before the Termination Date of its proposal to either leave or remove Grantee -Owned Improvements. (ii) State, within ninety (90) days, will notify Grantee whether State (1) does not waive removal or (2) consents to abandonment. (c) Grantee's Obligations if State Consents to Abandonment. (1) Grantee shall conduct Work necessary for abandonment in accordance with Subsection 7.3. (2) The submittal of plans and specifications shall identify means for plugging pipelines and notifying public of abandoned Improvements. (d) Grantee's Obligations if State Waives Removal. (1) Grantee shall not remove Improvements if State waives the requirement for removal of any or all Grantee -Owned Improvements. (2) Grantee shall maintain such Improvements in accordance with this Easement until the expiration, termination, or cancellation date. Grantee Aquatic Lands Outfall Easement (1/17) Page 9 of 32 Easement No. 51-077352 is liable to State for cost of repair if Grantee causes or allows damage to Improvements State has designated to remain. 7.5 Disposition of Unauthorized Improvements. (a) Unauthorized Improvements belong to State, unless State elects otherwise. (b) State may either: (1) Consent to Grantee ownership of the Improvements, or (2) Charge use and occupancy fee in accordance with RCW 79.105.200 of the Improvements from the time of installation or construction and (i) Require Grantee to remove the Improvements in accordance with Subsection 7.3, in which case Grantee shall pay use and occupancy fee for the Improvements until removal, (ii) Consent to Improvements remaining and Grantee shall pay use and occupancy fee for the use of the Improvements, or (iii) Remove Improvements and Grantee shall pay for the cost of removal and disposal, in which case Grantee shall pay use and occupancy fee for use of the Improvements until removal and disposal. 7.6 Disposition of Personal Property. (a) Grantee retains ownership of Personal Property unless Grantee and State agree otherwise in writing. (b) Grantee shall remove Personal Property from the Easement Property by the Termination Date. Grantee is liable for any damage to the Easement Property and to any Improvements that may result from removal of Personal Property. (c) State may sell or dispose of all Personal Property left on the Easement Property after the Termination Date. (1) If State conducts a sale of Personal Property, State shall apply proceeds first to the State's administrative costs in conducting the sale, second to payment of amount that then may be due from the Grantee to the State, and State shall pay the remainder, if any, to the Grantee. (2) If State disposes of Personal Property, Grantee shall pay for the cost of removal and disposal. SECTION 8 ENVIRONMENTAL LIABILITY/RISK ALLOCATION 8.1 Definitions. (a) "Hazardous Substance" means any substance that now or in the future becomes regulated or defined under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination, pollution, or cleanup, including, but not limited to, the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. 6901 et. seq., as amended; Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. 9601 et seq., as amended; Washington's Model Aquatic Lands Outfall Easement (1/17) Page 10 of 32 Easement No. 51-077352 Toxics Control Act ("MTCA"), Chapter 70.105D RCW, as amended; and Washington's Sediment Management Standards, WAC Chapter 173-204. (b) "Release or threatened release of Hazardous Substance" means a release or threatened release as defined under any law described in Paragraph 8.1(a) or any similar event defined under any such law. (c) "Utmost care" means such a degree of care as would be exercised by a very careful, prudent, and competent person under the same or similar circumstances; the standard of care established under MTCA, RCW 70.105D.040. 8.2 General Conditions. (a) Grantee's obligations under this Section 8 extend to the area in, on, under, or above: (1) The Easement Property and (2) Adjacent state-owned aquatic lands where a release or the presence of Hazardous Substances may arise from Grantee's use of the Easement Property. (b) Standard of Care. (1) Grantee shall exercise the utmost care with respect to Hazardous Substances. (2) In relation to the Permitted Use, Grantee shall exercise utmost care for the foreseeable acts or omissions of third parties with respect to Hazardous Substances, and the foreseeable consequences of those acts or omissions, to the extent required to establish a viable, third -party defense under the law, including — but not limited to — RCW 70.105D.040. 8.3 Current Conditions and Duty to Investigate. (a) Hazardous Substances are known to exist in, on, under, or above the Easement Property or adjacent state-owned lands. These are identified in Exhibit C, which is attached for information only and is not incorporated in the Easement. State makes no representations or warranties of any kind or nature regarding the accuracy, completeness, or any other matter relating to Exhibit C. Hazardous Substances other than those identified in Exhibit C may exist in, on, under, or above the Easement Property. (b) This Easement does not impose a duty on State to conduct investigations or supply information to Grantee about Hazardous Substances. (c) Grantee is responsible for conducting all appropriate inquiry and gathering sufficient information concerning the Easement Property and the existence, scope, and location of any Hazardous Substances on the Easement Property or on adjacent lands that allows Grantee to meet Grantee's obligations under this Easement. 8.4 Use of Hazardous Substances. (a) Grantee, its, contractors, agents, employees, guests, invitees, or affiliates shall not use, store, generate, process, transport, handle, release, or dispose of Hazardous Substances, except in accordance with all applicable laws. Aquatic Lands Outfall Easement (1/17) Page 11 of 32 Easement No. 51-077352 (b) Grantee shall not undertake, or allow others to undertake by Grantee's permission, acquiescence, or failure to act, activities that: (1) Result in a release or threatened release of Hazardous Substances, or (2) Cause, contribute to, or exacerbate any contamination exceeding regulatory cleanup standards whether the regulatory authority requires cleanup before, during, or after Grantee's use of the Easement Property. (c) If use of Hazardous Substance related to the Permitted Use results in a violation of an applicable law: (1) Grantee shall submit to State any plans for remedying the violation, and (2) State may require remedial measures in addition to remedial measures required by regulatory authorities. 8.5 Management of Contamination. (a) Grantee shall not undertake activities that: (1) Damage or interfere with the operation of remedial or restoration activities; (2) Result in human or environmental exposure to contaminated sediments; (3) Result in the mechanical or chemical disturbance of on-site habitat mitigation. (b) Grantee shall not interfere with access by: (1) Employees and authorized agents of the Environmental Protection Agency, the Washington State Department of Ecology, health department, or other similar environmental agencies; and (2) Potentially liable or responsible parties who are the subject of an order or consent decree that requires access to the Easement Property. Grantee may negotiate an access agreement with such parties, but Grantee may not unreasonably withhold such agreement. 8.6 Notification and Reporting. (a) Grantee shall immediately notify State if Grantee becomes aware of any of the following: (1) A release or threatened release of Hazardous Substances; (2) Any new discovery of or new information about a problem or liability related to, or derived from, the presence of any Hazardous Substance; (3) Any lien or action arising from the foregoing; (4) Any actual or alleged violation of any federal, state, or local statute, ordinance, rule, regulation, or other law pertaining to Hazardous Substances; (5) Any notification from the US Environmental Protection Agency (EPA) or the Washington State Department of Ecology (DOE) that remediation or removal of Hazardous Substances is or may be required at the Easement Property. (b) Grantee's duty to report under Paragraph 8.6(a) extends to the Easement Property, adjacent state-owned aquatic lands where a release or the presence of Hazardous Substances could arise from the Grantee's use of the Easement Property, and any other property used by Grantee in conjunction with Grantee's use of the Easement Aquatic Lands Outfall Easement (1/17) Page 12 of 32 Easement No. 51-077352 Property where a release or the presence of Hazardous Substances on the other property would affect the Easement Property. (c) Grantee shall provide State with copies of all documents concerning environmental issues associated with the Easement Property, and submitted by Grantee to any federal, state or local authorities. Documents subject to this requirement include, but are not limited to, applications, reports, studies, or audits for National Pollution Discharge and Elimination System Permits (NPDES); Army Corps of Engineers permits; State Hydraulic Project Approvals (HPA); State Water Quality certification; Substantial Development permit; and any reporting necessary for the existence, location, and storage of Hazardous Substances on the Easement Property. 8.7 Indemnification. (a) "Liabilities" as used in this Subsection 8.7 means any claims, demands, proceedings, lawsuits, damages, costs, expenses, fees (including attorneys' fees and disbursements), penalties, or judgments. (b) Grantee shall fully indemnify, defend, and hold State harmless from and against any Liabilities that arise out of, or relate to: (1) The use, storage, generation, processing, transportation, handling, or disposal of any Hazardous Substance by Grantee, its contractors, agents, invitees, guests, employees, affiliates, licensees, or permittees occurring anytime Grantee uses or has used the Easement Property; (2) The release or threatened release of any Hazardous Substance, or the exacerbation of any Hazardous Substance contamination resulting from any act or omission of Grantee, its contractors, agents, employees, guests, invitees, or affiliates occurring anytime Grantee uses or has used the Easement Property. (c) Grantee shall fully indemnify, defend, and hold State harmless for any Liabilities that arise out of or relate to Grantee's breach of obligations under Subsection 8.5. (d) Third Parties. (1) Grantee has no duty to indemnify State for acts or omissions of third parties unless Grantee fails to exercise the standard of care required by Paragraph 8.2(b)(2). Grantee's third -party indemnification duty arises under the conditions described in Subparagraph 8.7(d)(2). (2) If an administrative or legal proceeding arising from a release or threatened release of Hazardous Substances finds or holds that Grantee failed to exercise care as described in Subparagraph 8.7(d)(1), Grantee shall fully indemnify, defend, and hold State harmless from and against any liabilities arising from the acts or omissions of third parties in relation to the release or threatened release of Hazardous Substances. This includes any liabilities arising before the finding or holding in the proceeding. (e) Grantee is obligated to indemnify under the Subsection 8.7 regardless of whether a NPDES or other permit or license authorizes the discharge or release of Hazardous Substances. Aquatic Lands Outfall Easement (1/17) Page 13 of 32 Easement No. 51-077352 (f) For the period of time prior to the Term of this Easement that Grantee used or occupied the Easement Property, Grantee shall fully defend and hold State harmless from and against Liabilities that arise out of, or relate to: (1) The use, storage, generation, processing, transportation, handling, or disposal of any Hazardous Substance by Grantee, its contractors, agents, invitees, guests, employees, affiliates, licensees, or permittees; or (2) The release or threatened release of any Hazardous Substance, or the exacerbation of any Hazardous Substance contamination resulting from any act or omission of Grantee, its contractors, agents, employees, guests, invitees, or affiliates. 8.8 Reservation of Rights. (a) For any environmental liabilities not covered by the indemnification provisions of Subsection 8.7, the Parties expressly reserve and do not waive or relinquish any rights, claims, immunities, causes of action, or defenses relating to the presence, release, or threatened release of Hazardous Substances that either Party may have against the other under law. (b) This Easement affects no right, claim, immunity, or defense either Party may have against third parties, and the Parties expressly reserve all such rights, claims, immunities, and defenses. (c) The provisions under this Section 8 do not benefit, or create rights for, third parties. (d) The allocations of risks, liabilities, and responsibilities set forth above do not release either Party from, or affect the liability of either Party for, claims or actions by federal, state, or local regulatory agencies concerning Hazardous Substances. 8.9 Cleanup. (a) If Grantee's act, omission, or breach of obligation under Subsection 8.4 results in a release of Hazardous Substances, Grantee shall, at Grantee's sole expense, promptly take all actions necessary or advisable to clean up the Hazardous Substances in accordance with applicable law. Cleanup actions include, without limitation, removal, containment, and remedial actions. (b) Grantee's obligation to undertake a cleanup under Section 8 is limited to those instances where the Hazardous Substances exist in amounts that exceed the threshold limits of any applicable regulatory cleanup standards. (c) At the State's discretion, Grantee may undertake a cleanup of the Easement Property pursuant to the Washington State Department of Ecology's Voluntary Cleanup Program, provided that Grantee cooperates with the Department of Natural Resources in development of cleanup plans. Grantee shall not proceed with Voluntary Cleanup without Department of Natural Resources approval of final plans. Nothing in the operation of this provision is an agreement by Department of Natural Resources that the Voluntary Cleanup complies with any laws or with the provisions of this Easement. Grantee's completion of a Voluntary Cleanup is not a release from or waiver of any obligation for Hazardous Substances under this Easement. Aquatic Lands Outfall Easement (1/17) Page 14 of 32 Easement No. 51-077352 8.10 Sampling by State, Reimbursement, and Split Samples. (a) Grantee shall conduct sediment sampling, if required, in accordance with Exhibit B. (b) State may conduct sampling, tests, audits, surveys, or investigations ("Tests") of the Easement Property at any time to determine the existence, scope, or effects of Hazardous Substances. (c) If such Tests, along with any other information, demonstrate the existence, release, or threatened release of Hazardous Substances arising out of any action, inaction, or event described or referred to in Subsection 8.4, above, Grantee shall promptly reimburse State for all costs associated with such Tests. (d) State shall not seek reimbursement for any Tests under this Subsection 8.10 unless State provides Grantee written notice of its intent to conduct any Tests at least thirty (30) calendar days prior to undertaking such Tests, except when such Tests are in response to an emergency. Grantee shall reimburse State for Tests performed in response to an emergency if State has provided such notice as is reasonably practical. (e) Grantee is entitled to obtain split samples of any Test samples obtained by State, but only if Grantee provides State with written notice requesting such samples within twenty (20) calendar days of the date of Grantee's receipt of notice of State's intent to conduct any non -emergency Tests. Grantee solely shall bear the additional cost, if any, of split samples. Grantee shall reimburse State for any additional costs caused by split sampling within thirty (30) calendar days after State sends Grantee a bill with documentation for such costs. (f) Within sixty (60) calendar days of a written request (unless otherwise required pursuant to Paragraph 8.6(c), above), either Party to this Easement shall provide the other Party with validated final data, quality assurance/quality control information, and chain of custody information, associated with any Tests of the Easement Property performed by or on behalf of State or Grantee. There is no obligation to provide any analytical summaries or the work product of experts. 8.11 Closeout Assessment. (a) State has discretion to require Grantee to conduct a Closeout Environmental Assessment ("Closeout Assessment") prior to Termination of the Easement. (b) The purpose of the Closeout Assessment is to determine the existence, scope, or effects of any Hazardous Substances on the Easement Property and any associated natural resources. The Closeout Assessment may include sediment sampling. Sediment sampling includes those sample locations and parameters reported in Exhibit C as well as any additional testing State may require. (c) State shall provide Grantee with written notice that a Closeout Assessment is required no later than one hundred eighty (180) calendar days prior to the Termination Date, or within ninety (90) days of any valid notice to terminate the Easement earlier than originally agreed. (d) Within sixty (60) days of State's notice that Closeout Assessment is required and before commencing assessment activities, Grantee shall submit a proposed plan for conducting the Closeout Assessment in writing for State's approval. Aquatic Lands Outfall Easement (1/17) Page 15 of 32 Easement No. 51-077352 (e) If State fails to approve or disapprove of the plan in writing within sixty (60) days of its receipt, State waives requirement for approval. (f) Grantee shall be responsible for all costs required to complete planning, sampling, analyzing, and reporting associated with the Closeout Assessment. (g) If the initial results of the Closeout Assessment disclose that Hazardous Substances may have migrated to other property, State may require additional Closeout Assessment work to determine the existence, scope, and effect of any Hazardous Substances on adjacent property, any other property subject to use by Grantee in conjunction with its use of the Easement Property, or on any associated natural resources. (h) Grantee shall submit Closeout Assessment to State upon completion. (i) As required by law, Grantee shall report to the appropriate regulatory authorities if the Closeout Assessment discloses a release or threatened release of Hazardous Substances. SECTION 9 ASSIGNMENT Grantee shall not assign any part of Grantee's interest in this Easement or the Easement Property or grant any rights or franchises to third parties without State's prior written consent, which State shall not unreasonably condition or withhold. State reserves the right to reasonably change the terms and conditions of this Easement upon State's consent to assignment. SECTION 10 INDEMNITY, FINANCIAL SECURITY, INSURANCE 10.1 Indemnity. (a) Grantee shall indemnify, defend, and hold State, its employees, officers, and agents harmless from any Claims arising out of the Permitted Use or activities related to the Permitted Use by Grantee, its contractors, agents, invitees, guests, employees, affiliates, licensees, or permittees to the fullest extent permitted by law and subject to the limitations provided below. (b) "Claim" as used in this Subsection 10.1 means any financial loss, claim, suit, action, damages, expenses, costs, fees (including attorneys' fees), fines, penalties, or judgments attributable to bodily injury; sickness; disease; death; damages to tangible property, including, but not limited to, land, aquatic life, and other natural resources; and loss of natural resource values. "Damages to tangible property" includes, but is not limited to, physical injury to the Easement Property, diminution of value, and/or damages resulting from loss of use of the Easement Property. (c) Grantee is obligated to indemnify under this Subsection 10.1 regardless of whether any other provision of this Agreement or NPDES or other permit or license authorizes the discharge or release of a deleterious substance resulting in a claim. Aquatic Lands Outfall Easement (1/17) Page 16 of 32 Easement No. 51-077352 (d) No damages or fees paid by Grantee to State under other provisions of this Easement are a setoff against Grantee's obligation to indemnify under this Subsection 10.1 (e) State shall not require Grantee to indemnify, defend, and hold State harmless for claims caused solely by or resulting solely from the negligence or willful act of State or State's elected officials, employees, or agents. (f) Grantee specifically and expressly waives any immunity that may be granted under the Washington State Industrial Act, Title 51 RCW in connection with its obligation to indemnify, defend, and/or hold State and its agencies, officials, agents, or employees harmless. Further, the indemnification obligation under this Easement shall not be limited in any way by any limitation on amount or type of damages, compensation, or benefits payable to or for any third parry under the worker's compensation acts. (g) Section 8, Environmental Liability/Risk Allocation, exclusively governs Grantee's liability to State for Hazardous Substances and its obligation to indemnify, defend, and hold State harmless for Hazardous Substances (h) Only to the extent RCW 4.24.115 applies and requires such a limitation, if a claim, suit, or action for injuries or damage is caused by or results from the concurrent negligence of (a) the State or State's agents or employees and (b) the Grantee or Grantee's agents or employees, these indemnity provisions shall be valid and enforceable only to the extent of the negligence of the Grantee and those acting on its behalf. 10.2 Insurance Terms. (a) Insurance Required. (1) Grantee certifies that it is self-insured for all the liability exposures, its self-insurance plan satisfies all State requirements, and its self-insurance plan provides coverage equal to that required in this Subsection 10.2 and by Subsection 10.3, Insurance Types and Limits. Grantee shall provide to State evidence of its status as a self-insured entity. Upon request by State, Grantee shall provide a written description of its financial condition and/or the self-insured funding mechanism. Grantee shall provide State with at least thirty (30) days' written notice prior to any material changes to Grantee's self-insured funding mechanism. (2) Unless State agrees to an exception, Grantee shall provide insurance issued by an insurance company or companies admitted to do business in the State of Washington and have a rating of A- or better by the most recently published edition of Best's Reports. Grantee may submit a request to the risk manager for the Department of Natural Resources for an exception to this requirement. If an insurer is not admitted, the insurance policies and procedures for issuing the insurance policies must comply with Chapter 48.15 RCW and 284-15 WAC. (3) The State of Washington, the Department of Natural Resources, its elected and appointed officials, agents, and employees must be named as an additional insured on all general liability, excess, umbrella, property, builder's risk, and pollution legal liability insurance policies. Aquatic Lands Outfall Easement (1/17) Page 17 of 32 Easement No. 51-077352 (4) All insurance provided in compliance with this Easement must be primary as to any other insurance or self-insurance programs afforded to or maintained by State. (b) Waiver. (1) Grantee waives all rights against State for recovery of damages to the extent insurance maintained pursuant to this Easement covers these damages. (2) Except as prohibited by law, Grantee waives all rights of subrogation against State for recovery of damages to the extent that they are covered by insurance maintained pursuant to this Easement. (c) Proof of Insurance. (1) Grantee shall provide State with a certificate(s) of insurance executed by a duly authorized representative of each insurer, showing compliance with insurance requirements specified in this Easement and, if requested, copies of policies to State. (2) The certificate(s) of insurance must reference additional insureds and the Easement number. (3) Receipt of such certificates or policies by State does not constitute approval by State of the terms of such policies. (d) State must receive written notice before cancellation or non -renewal of any insurance required by this Easement, in accordance with the following: (1) Insurers subject to RCW 48.18 (admitted and regulated by the Insurance Commissioner): If cancellation is due to non-payment of premium, provide State ten (10) days' advance notice of cancellation; otherwise, provide State forty-five (45) days' advance notice of cancellation or non- renewal. (2) Insurers subject to RCW 48.15 (surplus lines): If cancellation is due to non-payment of premium, provide State ten (10) days' advance notice of cancellation; otherwise, provide State thirty (30) days' advance notice of cancellation or non -renewal. (e) Adjustments in Insurance Coverage. (1) State may impose changes in the limits of liability for all types of insurance as State deems necessary. (2) Grantee shall secure new or modified insurance coverage within ninety (90) days after State requires changes in the limits of liability. (f) If Grantee fails to procure and maintain the insurance described above within fifteen (15) days after Grantee receives a notice to comply from State, State may either: (1) Deem the failure an Event of Default under Section 14, or (2) Procure and maintain comparable substitute insurance and pay the premiums. Upon demand, Grantee shall pay to State the full amount paid by State, together with interest at the rate provided in Subsection 6.2 from the date of State's notice of the expenditure until Grantee's repayment. (g) General Terms. (1) State does not represent that coverage and limits required under this Easement will be adequate to protect Grantee. Aquatic Lands Outfall Easement (1/17) Page 18 of 32 Easement No. 51-077352 (2) Coverage and limits do not limit Grantee's liability for indemnification and reimbursements granted to State under this Easement. (3) The Parties shall use any insurance proceeds payable by reason of damage or destruction to Easement Property first to restore the Easement Property, then to pay the cost of the reconstruction, then to pay the State any sums in arrears, and then to Grantee. 10.3 Insurance Types and Limits. (a) General Liability Insurance. (1) Grantee shall maintain commercial general liability insurance (CGL) or marine general liability (MGL) covering claims for bodily injury, personal injury, or property damage arising on the Easement Property and/or arising out of the Permitted Use and, if necessary, commercial umbrella insurance with a limit of not less than One Million Dollars ($1,000,000) per each occurrence. If such CGL or MGL insurance contains aggregate limits, the general aggregate limit must be at least twice the "each occurrence" limit. CGL or MGL insurance must have products -completed operations aggregate limit of at least two times the "each occurrence" limit. (2) CGL insurance must be written on Insurance Services Office (ISO) Occurrence Form CG 00 01 (or a substitute form providing equivalent coverage). All insurance must cover liability arising out of premises, operations, independent contractors, products completed operations, personal injury and advertising injury, and liability assumed under an insured contract (including the tort liability of another party assumed in a business contract) and contain separation of insured (cross -liability) condition. (3) MGL insurance must have no exclusions for non -owned watercraft. (b) Workers' Compensation. (1) State of Washington Workers' Compensation. (i) Grantee shall comply with all State of Washington workers' compensation statutes and regulations. Grantee shall provide workers' compensation coverage for all employees of Grantee. Coverage must include bodily injury (including death) by accident or disease, which arises out of or in connection with the Permitted Use or related activities. (ii) If Grantee fails to comply with all State of Washington workers' compensation statutes and regulations and State incurs fines or is required by law to provide benefits to or obtain coverage for such employees, Grantee shall indemnify State. Indemnity includes all fines; payment of benefits to Grantee, employees, or their heirs or legal representatives; and the cost of effecting coverage on behalf of such employees. (2) Longshore and Harbor Worker's Act. The Longshore and Harbor Worker's Compensation Act (33 U.S.C. Section 901 et. seq.) may require Grantee to provide insurance coverage for longshore and harbor workers Aquatic Lands Outfall Easement (1/17) Page 19 of 32 Easement No. 51-077352 (c) (d) other than seaman. Failure to obtain coverage in the amount required by law may result in civil and criminal liabilities. Grantee is fully responsible for ascertaining if such insurance is required and shall maintain insurance in compliance with this Act. Grantee is responsible for all civil and criminal liability arising from failure to maintain such coverage. (3) Jones Act. The Jones Act (46 U.S.C. Section 688) may require Grantee to provide insurance coverage for seamen injured during employment resulting from negligence of the owner, master, or fellow crew members. Failure to obtain coverage in the amount required by law may result in civil and criminal liabilities. Grantee is fully responsible for ascertaining if such insurance is required and shall maintain insurance in compliance with this Act. Grantee is responsible for all civil and criminal liability arising from failure to maintain such coverage. Employer's Liability Insurance. Grantee shall procure employer's liability insurance, and, if necessary, commercial umbrella liability insurance with limits not less than One Million Dollars ($1,000,000) each accident for bodily injury by accident or One Million Dollars ($1,000,000) each employee for bodily injury by disease. Pollution Legal Liability Insurance. (1) Grantee shall procure and maintain for the duration of this Easement pollution legal liability insurance, including investigation and defense costs, for bodily injury and property damage, including loss of use of damaged property or of property that has been physically damaged or destroyed. Such coverage must provide for both on-site and off-site cleanup costs and cover gradual and sudden pollution, and include in its scope of coverage natural resource damage claims. Grantee shall maintain coverage in an amount of at least: (i) Three million Dollars ($3,000,000) each occurrence for Grantee's operations at the site(s) identified above, and (ii) Six Million Dollars ($6,000,000) general aggregate or policy limit, if any. (2) Such insurance may be provided on an occurrence or claims -made basis. If such coverage is obtained as an endorsement to the CGL and is provided on a claims -made basis, the following additional conditions must be met: (i) The Insurance Certificate must state that the insurer is covering Hazardous Substance removal. (ii) The policy must contain no retroactive date, or the retroactive date must precede abatement services. (iii) Coverage must be continuously maintained with the same insurance carrier through the official completion of any work on the Easement Property. (iv) The extended reporting period (tail) must be purchased to cover a minimum of thirty-six (36) months beyond completion of work. Aquatic Lands Outfall Easement (1/17) Page 20 of 32 Easement No. 51-077352 10.4 Financial Security. (a) At its own expense, Grantee shall procure and maintain during the Term of this Easement a corporate security bond or provide other financial security that State may approve ("Security"). Grantee shall provide Security in an amount equal to Zero Dollars ($0.00), which is consistent with RCW 79.105.330, and secures Grantee's performance of its obligations under this Easement, with the exception of the obligations under Section 8, Environmental Liability/Risk Allocation. Grantee's failure to maintain the Security in the required amount during the Term constitutes a breach of this Easement. (b) All Security must be in a form acceptable to the State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of Best's Reports, unless State approves an exception. Grantee may submit a request to risk manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation, if any, (ii) As a condition of approval of assignment of this Easement, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Grantee shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Grantee in its obligations under this Easement, State may collect on the Security to offset the liability of Grantee to State. Collection on the Security does not (1) relieve Grantee of liability, (2) limit any of State's other remedies, (3) reinstate or cure the default or (4) prevent termination of the Easement because of the default. SECTION 11 MAINTENANCE AND REPAIR 11.1 State's Repairs. State shall not be required to make any alterations, maintenance, replacements, or repairs in, on, or about the Easement Property, or any part thereof, during the Term. 11.2 Grantee's Repairs and Maintenance. (a) Grantee shall, at its sole cost and expense, keep and maintain the Easement Property and all improvements (regardless of ownership) in good order and Aquatic Lands Outfall Easement (1/17) Page 21 of 32 Easement No. 51-077352 repair, in a clean, attractive, and safe condition. (b) Grantee shall, at its sole cost and expense, make any and all additions, repairs, alterations, maintenance, replacements, or changes to the Easement Property or to any improvements on the Easement Property which may be required by any public authority having jurisdiction over the Easement Property and requiring it for public health, safety and welfare purposes. (c) Except as provided in Section 11.2(d), all additions, repairs, alterations, replacements or changes to the Easement Property and to any improvements on the Easement Property shall be made in accordance with, and ownership shall be governed by, Section 7, above. (d) Routine maintenance and repair are acts intended to prevent a decline, lapse or, cessation of the Permitted Use and associated Improvements. Routine maintenance or repair that does not require regulatory permits does not require authorization from State pursuant to Section 7. (e) Upon completion of maintenance activities, Grantee shall remove all debris and restore the Easement Property, as nearly as possible, to the condition prior to the commencement of work. SECTION 12 DAMAGE OR DESTRUCTION 12.1 Notice and Repair. (a) In the event of any known damage to or destruction of the Easement Property or any Improvements, Grantee shall promptly give written notice to State. State does not have actual knowledge of the damage or destruction of the Easement Property or any Improvements without Grantee's written notice. (b) Unless otherwise agreed in writing, Grantee shall promptly reconstruct, repair, or replace any Improvements in accordance with Subsection 7.3, Construction, Major Repair, Modification, and Demolition, as nearly as possible to its condition immediately prior to the damage or destruction. Where damage to state-owned aquatic land or natural resources is attributable to the Permitted Use or related activities, Grantee shall promptly restore the lands or resources to the condition preceding the damage in accordance with Subsection 7.3 unless otherwise agreed in writing. 12.2 State's Waiver of Claim. State does not waive any claims for damage or destruction of the Easement Property unless State provides written notice to Grantee of each specific claim waived. 12.3 Insurance Proceeds. Grantee's duty to reconstruct, repair, or replace any damage or destruction of the Easement Property or any Improvements on the Easement Property is not conditioned upon the availability of any insurance proceeds to Grantee from which the cost of repairs may be paid. The Parties shall use insurance proceeds in accordance with Subparagraph 10.2(g)(3). Aquatic Lands Outfall Easement (1/17) Page 22 of 32 Easement No. 51-077352 SECTION 13 CONDEMNATION In the event of condemnation, the Parties shall allocate the award between State and Grantee based upon the ratio of the fair market value of (1) Grantee's rights in the Easement Property and Grantee -Owned Improvements and (2) State's interest in the Easement Property; the reversionary interest in Grantee -Owned Improvements, if any; and State -Owned Improvements. In the event of a partial taking, the Parties shall compute the ratio based on the portion of Easement Property or Improvements taken. If Grantee and State are unable to agree on the allocation, the Parties shall submit the dispute to binding arbitration in accordance with the rules of the American Arbitration Association. SECTION 14 TERMINATION 14.1 Termination by Breach. State may terminate this Easement upon Grantee's failure to cure a breach of the terms and conditions of this Easement. State shall provide Grantee written notice of breach. Grantee shall have sixty (60) days after receiving notice to cure. State may extend the cure period if breach is not reasonably capable of cure within sixty (60) days. 14.2 Termination by Nonuse. If Grantee does not use the Easement Property for a period of three (3) successive years, this Easement terminates without further action by State. Grantee's rights revert to State upon Termination by Nonuse. 14.3 Termination by Grantee. Grantee may terminate this Easement upon providing State with sixty (60) days written notice of intent to terminate. SECTION 15 NOTICE AND SUBMITTALS 15.1 Notice. Following are the locations for delivery of notice and submittals required or permitted under this Easement. Any Party may change the place of delivery upon ten (10) days written notice to the other. State: DEPARTMENT OF NATURAL RESOURCES Shoreline District 950 Farman Avenue North Enumclaw, WA 98022 Grantee: CITY OF BREMERTON Public Works and Utilities; Wastewater Division 1600 Oyster Bay Avenue South Bremerton, WA 98312 The Parties may deliver any notice in person, by facsimile machine, or by certified mail. Depending on the method of delivery, notice is effective upon personal delivery, upon receipt of a confirmation report if delivered by facsimile machine, or three (3) days after mailing. All Aquatic Lands Outfall Easement (1/17) Page 23 of 32 Easement No. 51-077352 notices must identify the Easement number. On notices transmitted by facsimile machine, the Parties shall state the number of pages contained in the notice, including the transmittal page, if any. 15.2 Contact Persons. On the Commencement Date, the following persons are designated day-to-day contact persons. Any Party may change the Contact Person upon reasonable notice to the other. State: Kitsap County Aquatic Land Manager 360-825-1631 360-825-1672 Aquaticleasing.shoreline@dnr.wa.gov Grantee: Patric Coxon; Wastewater Manager 360-473-5448 360-473-5455 Patric. Coxon@Ci.Bremerton. WA.0 S SECTION 16 MISCELLANEOUS 16.1 Authority. Grantee and the person or persons executing this Easement on behalf of Grantee represent that Grantee is qualified to do business in the State of Washington, that Grantee has full right and authority to enter into this Easement, and that each and every person signing on behalf of Grantee is authorized to do so. Upon State's request, Grantee shall provide evidence satisfactory to State confirming these representations. This Easement is entered into by State pursuant to the authority granted it in Chapter 43.12 RCW, Chapter 43.30 RCW, and Title 79 RCW and the Constitution of the State of Washington. 16.2 Successors and Assigns. This Easement binds and inures to the benefit of the Parties, their successors, and assigns. 16.3 Headings. The headings used in this Easement are for convenience only and in no way define, limit, or extend the scope of this Easement or the intent of any provision. 16.4 Entire Agreement. This Easement, including the exhibits and addenda, if any, contains the entire agreement of the Parties. This Easement merges all prior and contemporaneous agreements, promises, representations, and statements relating to this transaction or to the Easement Property. 16.5 Waiver. (a) The waiver of any breach or default of any term, covenant, or condition of this Easement is not a waiver of such term, covenant, or condition; of any subsequent breach or default of the same; or of any other term, covenant, or condition of this Easement. State's acceptance of payment is not a waiver of any preceding or Aquatic Lands Outfall Easement (1/17) Page 24 of 32 Easement No. 51-077352 existing breach other than the failure to pay the particular payment that was accepted. (b) The renewal of the Easement, extension of the Easement, or the issuance of a new Easement to Grantee, does not waive State's ability to pursue any rights or remedies under the Easement. 16.6 Cumulative Remedies. The rights and remedies under this Easement are cumulative and in addition to all other rights and remedies afforded by law or equity or otherwise. 16.7 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Easement. 16.8 Language. The word "Grantee" as used in this Easement applies to one or more persons, as the case may be. The singular includes the plural, and the neuter includes the masculine and feminine. If there is more than one Grantee, their obligations are joint and several. The word "persons," whenever used, includes individuals, firms, associations, and corporations. The word "Parties" means State and Grantee in the collective. The word "Party" means either or both State and Grantee, depending on context. 16.9 Invalidity. The invalidity, voidness, or illegality of any provision of this Easement does not affect, impair, or invalidate any other provision of this Easement. 16.10 Applicable Law and Venue. This Easement is to be interpreted and construed in accordance with the laws of the State of Washington. Any reference to a statute means that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Easement is in the Superior Court for Thurston County, Washington. 16.11 Recordation. At Grantee's expense and no later than thirty (30) days after receiving the fully -executed Easement, Grantee shall record this Easement in the county in which the Property is located. Grantee shall include the parcel number of the upland property used in conjunction with the Easement Property, if any. Grantee shall provide State with recording information, including the date of recordation and file number. 16.12 Modification. No modification of this Easement is effective unless in writing and signed by the Parties. Oral representations or statements do not bind either Party. 16.13 Survival. Any obligations of Grantee not fully performed upon termination of this Easement do not cease, but continue as obligations of the Grantee until fully performed. Aquatic Lands Outfall Easement (1/17) Page 25 of 32 Easement No. 51-077352 16.14 Exhibits. All referenced exhibits are incorporated in this Easement unless expressly identified as unincorporated. THIS AGREEMENT requires the signature of all Parties and is effective on the date of the last signature below. Dated. 3 , 20 ff STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES By `KRISTIN SWENDDAL Title: Acting Deputy Supervisor for Aquatics, Geology and IT Address: 950 Farman Avenue North Enumclaw, WA 98022 CITY OF BREMERTOON Dated: MQcc,• -T , 20 1bX By: &&G WHEELER Title: Mayor Address: Phone Approved as to form this 12th day of January 2018 Jennifer Clements, Assistant Attorney General 3456 TH Street - Suite 600 Bremerton, WA 98337 360-473-5266 Aquatic Lands Outfall Easement (1/17) Page 26 of 32 Easement No. 51-077352 REVIEWED AND APPROVED BY FOR THE CITY OF BREMERTON BY Dated: Motk ? , 201 8 or By: ItOGER LUBOVICI-11--- -- Title: City Attorney of City of Bremerton Dated: kkrC,11 , 20(� OLI� By: SHANNON COR1N Title: City Clerk for the City of Bremerton Aquatic Lands Outfall Easement (1/17) Page 27 of 32 Easement No. 51-077352 REPRESENTATIVE ACKNOWLEDGMENT STATE OF WASHINGTON ) ) ss. County of Y-TrSA? ) I certify that I know or have satisfactory evidence that GREG WHEELER is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Mayor of the City of Bremerton to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: rC k - , 20I (Signature) (Seal or stamp) Notary Public State of Washington Shannon L. Corin Commission Expires 11-17-2019 (—� t , & rie, (Print Name) Notary Public in and for the State of Wasl4gton, residing at My appointment expires I/- 1-711q Aquatic Lands Outfall Easement (1/17) Page 28 of 32 Easement No. 51-077352 STATE ACKNOWLEDGMENT STATE OF WASHINGTON) ss. County of � � � �. � I certify that I know or have satisfactory evidence that KRISTIN SWENDDAL is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she was authorized to execute the instrument and acknowledged it as the Acting Deputy Supervisor for Aquatics, Geology and Information Technology of the Department of Natural Resources of the State of Washington to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: ' ,� , 20L� tore) (Seal or stamp) ,rte N l�je now 0 em t ;�N17 1� Jr (Print Name) Notary Public in and for the State of Washington, residing at My appointment expires Aquatic Lands Outfall Easement (1/17) Page 29 of 32 Easement No. 51-077352 EXHIBIT A Agreement Number: 51-077352 Recording number of final DNR approved survey in Kitsap County: 201611290331 Legal description of the Property: Those portions of the harbor area and badlands of Sinclair Inlet, owned by the State of Washington, situate in front of Tract 24, Charleston ridelands and included within the limits of a strip 25 feet In width, having 12.5 feet on each side of the, following described centerline: Commencing at the Northwest comer of Section 27, Township 24 North, Range I Edst* WM.,'K1tsqp' County, Washington: thence South 8758'19' East along the North 11he of said Section 499.10 feet; thence South 21 IWO" East 736.50 feet to a point on the Inner Harbor Line and the Point of Beginning of this centerflno; thence continuing South 21VI"45" East 339} 94 feet to the point of termination of thts description. Square footage of each of these Use classifications: Water -dependent 0.0 Nonwater-dependent 8,498.0 Public Access 0.0 Total square feet 8,498.0 Aquatic Lands Outfall Easement (1/17) Page 30 of 32 Easement No. 51-077352 PLAN OF OPERATIONS EXHIBIT B 1. DESCRIPTION OF PERMITTED USE A. Existing Facilities The existing Bremerton West Wastewater Treatment Plant (West Plant) outfall pipe has been in place since 1972 and discharges disinfected secondary treated effluent off the north shore of Sinclair Inlet. The West Plant receives domestic sewage from residential and light commercial activities in the city of Bremerton and Kitsap County Sewer District Number 1. The plant also receives wastewater from Harrison Memorial Hospital, and domestic and industrial wastewater from Puget Sound Naval Shipyard (PSNS). The domestic wastewater from PSNS includes waste water from on -shore chemical toilet facilities and saline wastewater from toilet facilities on ship and pretreated wastewater from the industrial wastewater treatment facility. The outfall consists of a 36 -inch diameter reinforced concrete pipe that extends 568 feet from the shoreline, including a 120 -foot long diffuser with 20, 6.5 -inch ports. The outfall discharges at water depths estimated to be between -27 feet and -32 feet at MLLW. The outfall pipe is buried to a distance of approximately 200 feet from shore, daylighting at an estimated depth of -21 feet at MLLW. Approximately 340 feet of the outfall pipe occurs on SOAL. A 2008 underwater condition assessment found the outfall to be in excellent condition, with all ports flowing freely and all joints and hardware intact. The West Plant has a design flow of 23 million gallons per day (mgd), with secondary treatment bypass occurring at flows above 22.8 mgd. The current NPDES permit expires in June 2018 and includes a requirement for sampling to demonstrate that the outfall discharge point is either a non -depositional area or that toxic impacts to sediment are not occurring as a result of permitted discharges. B. Proposed Facilities. No new facilities are proposed. 2. ADDITIONAL OBLIGATIONS A. National Pollutant Discharge Elimination System (NPDES) permit i. The NPDES Permit start date is June 2013 and requires renewal at least every 5 years. ii. Grantee shall notify State when they contact the Department of Ecology to apply or renew a National Pollutant Discharge Elimination System (NPDES) permit. iii. Grantee shall notify State of any proposed changes/additions/deletions to the NPDES permit and allow State a reasonable period to comment. Aquatic Lands Outfall Easement (1/17) Page 31 of 32 Easement No. 51-077352 iv. Grantee shall submit to State a summary of all Outfall Evaluation Reports, Sediment Sampling Reports, and Overflow bypass information generated for compliance to the NPDES Outfall permit. The summary shall include core findings and sufficient detail to locate the original documents in the Department of Ecology records system. Aquatic Lands Outfall Easement (1/17) Page 32 of 32 Easement No. 51-077352 HILARY S. FRANZ COMMISSIONER OF PUBLIC LANDS April 27, 2018 City of Bremerton 3027 Olympus Drive Bremerton, WA 98310-4620 ENGINEERING DIVISION RECEIVED MAY - 7 2018 City of Bremerton Risk Management Subject: Aquatic Lands Easement No. 51-089890 — Insurance Requirement Dear Grantee: According to our records your insurance policy for general liability and bodily injury has expired. Your aquatic lands easement requires you to have this policy in place at all times and to name the state as additional insured with a 45 day written notice of cancellation. Please send an updated Certificate of Insurance within thirty (30) days from the date of this letter to the following address: Department of Natural Resources Shoreline District Aquatics 950 Farman Avenue North Enumclaw, WA 98022-9282 Please ensure your Aquatic Lands Agreement Number is referenced on the certificate. If you have questions concerning this matter, please contact me at (206) 455-1014, or tnna.sundcrlandr dnr.wa.�,,ov. Sincerely, Trina Sunderland, Land Manager Shoreline District Aquatics c: District File TRO File Ei PRINTED ON RECYCLED PAPER. DNR IS AN EQUAL OPPORTUNITY EMPLOYER. DEPARTMENT OF NATURAL RESOURCES SOUTH PUGET SOUND REGION 950 FARMAN AVENUE N ENUMCLAW, WA 98022-9282 RECEIVED 360-825-1631 TRS 711 SOUTHPUGET.REG IONQDNR.WA.GOV APR -3 0 2018 WWW.DNR.WA.GOV ENGINEERING DIVISION RECEIVED MAY - 7 2018 City of Bremerton Risk Management Subject: Aquatic Lands Easement No. 51-089890 — Insurance Requirement Dear Grantee: According to our records your insurance policy for general liability and bodily injury has expired. Your aquatic lands easement requires you to have this policy in place at all times and to name the state as additional insured with a 45 day written notice of cancellation. Please send an updated Certificate of Insurance within thirty (30) days from the date of this letter to the following address: Department of Natural Resources Shoreline District Aquatics 950 Farman Avenue North Enumclaw, WA 98022-9282 Please ensure your Aquatic Lands Agreement Number is referenced on the certificate. If you have questions concerning this matter, please contact me at (206) 455-1014, or tnna.sundcrlandr dnr.wa.�,,ov. Sincerely, Trina Sunderland, Land Manager Shoreline District Aquatics c: District File TRO File Ei PRINTED ON RECYCLED PAPER. DNR IS AN EQUAL OPPORTUNITY EMPLOYER. c1c,rii- t-Doi'zzcGoDo-D-o4 Page 1 of 2 ,,, '''���ryryry�LLL��///------"I'��' Ap DATE(MM/DD/YYYY) ���A/A CERTIFICATE OF LIABILITY INSURANCE 05/14/2019 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(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Willis of Seattle, Inc. c/o 26 Century Blvd (A/C.No,o,Extl: 1-877-945-7378 FAX No): 1-888-467-2378 P.O. Box 305191 RECEIVE® E-MAIL ADDRESS: certificates@willis.com Nashville, TN 372305191 USA RECEIVED INSURER(S)AFFORDING COVERAGE NAIC# WAY _tij INSURERA: Allied World Insurance Company 22730 ,wr/-1 INSURED i 1 4 LU 19 INSURER B: Hartford Fire Insurance Company 19682 City of Bremerton Attn: Melisa Palmer - INSURER C: Illinois Union Insurance Company 27960 345 Sixth Street City of Bremerton INSURERD: Indian Harbor Insurance Company 36940 Suite 100 Risk ManagementINSURER E: Bremerton, WA 983371873 INSURER F: COVERAGES CERTIFICATE NUMBER:W11227900 REVISION NUMBER: 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 EFF POLICY EXP LIMITS LTR MSDWVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 RETE CLAIMS-MADE X OCCUR PREM SESO(Ea occur ence) $ 100,000 A MED EXP(Any one person) $ Y 5110-0088-01 02/01/2019 02/01/2020 PERSONAL&ADV INJURY $ 1,000,000 GE 'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 3,000,000 POLICY PRO LOC PRODUCTS-COMP/OPAGG $ 3,000,000 PRO- JECT OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ (Ea accident) ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED - BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS _ HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) $ UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 1,000,000 A X EXCESSLIAB CLAIMS-MADE Y 5110-0088-01 02/01/2019 02/01/2020 AGGREGATE $ 3,000,000 DED X RETENTION$ 500,000 $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY '0 N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE - N/A E.L.EACH ACCIDENT $ OFFICER/MEMBEREXCLUDED? (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ B Property Y 52 UEJ HC7428 12/31/2018 12/31/2019 Limit of Liability $100,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) SEE ATTACHED CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. State of Washington Department of Natural Resources Aquatics Resources Division AUTHORIZED REPRESENTATIVE PO Box 47027 _ Olympia, WA 98504 —.41111. ©1988-2016 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD SR ID 17960670 BATCH: 1197149 AGENCY CUSTOMER ID: LOC#: ® AOREP ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AGENCY NAMED INSURED Willis of Seattle, Inc. City of Bremerton Attn: Melisa Folmer POLICY NUMBER 345 Sixth Street See Page 1 Suite 100 Bremerton, WA 983371873 CARRIER NAIC CODE See Page 1 See Page 1 EFFECTIVE DATE: See Page 1 ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance The State of Washington, the Department of Natural Resources, its elected and appointed officials, agents, and employees are included as Additional Insureds per written agreement or contract. - Easement # 51-077356 - Aquatic Lands Outfall Easement - Easement # 51-077352 - Aquatic Lands Outfall Easement INSURER AFFORDING COVERAGE: Illinois Union Insurance Company NAIC#: 27960 POLICY NUMBER: PPL G272700130 02 EFF DATE: 05/16/2016 EXP DATE: 05/16/2019 ADDITIONAL INSURED: Y TYPE OF INSURANCE: LIMIT DESCRIPTION: LIMIT AMOUNT: Pollution Per Incident 1,000,000 Aggregate 1,000,000 INSURER AFFORDING COVERAGE: Indian Harbor Insurance Company NAIC#: 36940 POLICY NUMBER: XEC0051388 EFF DATE: 01/30/2018 EXP DATE: 05/16/2019 ADDITIONAL INSURED: Y TYPE OF INSURANCE: LIMIT DESCRIPTION: LIMIT AMOUNT: Excess Pollution Per Incident $2,000,000 Aggregate $5,000,000 ACORD 101 (2008/01) ©2008 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SR ID: 17960670 BATCH: 1197149 CERT: W11227900 SCHEDULE OF ADDITIONAL INSUREDS ENDORSEMENT Named Insured Endorsement Number City of Bremerton 10 Policy Symbol Policy Number Policy Period Effective Date of Endorsement PPL G27270013 002 05/16/2016 to 05/16/2019 03/16/2018 Issued By(Name of Insurance Company) Illinois Union Insurance Company Insert the policy number.The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The"insured"and the Insurer hereby agree to the following changes to this Policy: The persons or entities identified in the Schedule of Additional Insureds, below, are "additional insureds" pursuant to this Policy, but solely with respect to their vicarious liability arising out of any "named insured's" direct liability for a "pollution condition" on, at under or migrating from, or an "indoor environmental condition" at, a "covered location"to which this insurance applies Schedule of Additional Insureds 1. The State of Washington, the Department of Natural Resources, its elected and appointed officials, agents, and employees, as respects the Aquatic Lands Outfall Easement—51-077352 between the City of Bremerton and Washington State Department of Natural Resources All other terms and conditions of this Policy remain unchanged. 40artiorK JOHN J LUPEGA President. Authorized Representative PF-44892(09/14) Page 1 of 1 D-012 O7v OD-C> e 1 of 2 _ ACERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY) 12/23/2019 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(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Willis Towers Watson Certificate Center NAME: Willis of Seattle, Inc. PHONE FAX FAX 1-888-467-2378 c/o 26 Century Blvd (A/C.No.Ext): E-MAIL P.O. Box 305191 , ADDRESS: certificates@willis.com Nashville, TN 372305191 USA �, rtf"�y..p� INSURER (A/C,No): S)AFFORDING COVERAGE NAIC# INSURERA: Allied World Insurance Company 22730 INSURED 2 t2.t1m INSURERB: Hartford Fire Insurance Company 19682 City of Bremerton Or(' Attn: Melisa Folmer t� INSURER C: Illinois Union Insurance Company 27960 345 Sixth Street rk.0 INSURER D: Suite 100 118 Qf [�+ � Bremerton, WA 983371873 `� h�;3t�8g tt INSURER E INSURER F: COVERAGES CERTIFICATE NUMBER:W14874746 REVISION NUMBER: 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 EFF POLICY EXP LTR INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR PRSRENTED PREMISES((Ea occurrence) $ 100,000 A MED EXP(Any one person) $ Y 5110-0088-01 02/01/2019 02/01/2020 PERSONAL&ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 3,000,000 POLICY PRO- JECT LOC PRODUCTS-COMP/OPAGG $ 3,000,000 OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ (Ea accident) ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS _ HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) _ $ UMBRELLA LIAB X1,000,000OCCUR EACH OCCURRENCE $ A _ X EXCESSLIAB CLAIMS-MADE Y 5110-0088-01 02/01/2019 02/01/2020 AGGREGATE $ 3,000,000 DED X RETENTION$ 500,000 $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ B Property 52UFJHC7428 12/31/2019 12/31/2020 Limit of Liability $100,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) SEE ATTACHED CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. State of Washington Department of Natural Resources Aquatics Resources Division C-AUTHORIZED, REPRESENTATIVE PO Box 47027 -'-'- .„J Olympia, WA 98504 ©1988-2016 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD SR ID, 19008067 BATCH: 1503557 AGENCY CUSTOMER ID: LOC#: ACCORD ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AGENCY NAMED INSURED Willis of Seattle, Inc. City of Bremerton Attn: Melina Folmer POLICY NUMBER 345 Sixth Street See Page 1 Suite 100 Bremerton, WA 983371873 CARRIER NAIC CODE See Page 1 See Page 1 EFFECTIVE DATE: See Page 1 ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance The State of Washington, the Department of Natural Resources, its elected and appointed officials, agents, and employees are included as Additional Insureds per written agreement or contract. - Easement # 51-077356 - Aquatic Lands Outfall Easement - Easement # 51-077352 - Aquatic Lands Outfall Easement INSURER AFFORDING COVERAGE: Illinois Union Insurance Company NAIC#: 27960 POLICY NUMBER: PPL G27270013 003 EFF DATE: 05/16/2019 EXP DATE: 05/16/2021 ADDITIONAL INSURED: Y TYPE OF INSURANCE: LIMIT DESCRIPTION: LIMIT AMOUNT: Environmental Pollution Liability Each Occurrence $5,000,000 Aggregate $10,000,000 ACORD 101 (2008/01) ©2008 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SR ID: 19008067 BATCH: 1503557 CERT: W14874746 r SCHEDULE OF ADDITIONAL INSUREDS ENDORSEMENT Named Insured Endorsement Number City of Bremerton 001 Policy Symbol Policy Number Policy Period Effective Date of Endorsement PPL G27270013 003 05/16/2019 to 05/16/2021 05/16/2019 Issued By(Name of Insurance Company) Illinois Union Insurance Company Insert the policy number.The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The "insured" and the Insurer hereby agree to the following changes to this Policy: The persons or entities identified in the Schedule of Additional Insureds, below, are "additional insureds" pursuant to this Policy, but solely with respect to their vicarious liability arising out of any "named insured's" direct liability for a "pollution condition" on, at under or migrating from, or an "indoor environmental condition" at, a "covered location"to which this insurance applies Schedule of Additional Insureds 1. The State of Washington, the Department of Natural Resources, its elected and appointed officials, agents, and employees, as respects the Aquatic Lands Outfall Easement-51-077352 between the City of Bremerton and Washington State Department of Natural Resources. 2. State of Washington; Department of Natural Resources;Aquatics Resources Division; PO Box 47027; Olympia WA 98504. 3. The State of Washington, the Department of Natural Resources, its elected and appointed officials, agents, and employees are included as additional insureds per written agreement or contract. -Easement#51-077356-Aquatic Lands Outfall Easement -Easement#51-077352-Aquatic Lands Outfall Easement All other terms and conditions of this Policy remain unchanged. Authorized Representative PF-44892(09/14) Page 1 of 1