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HomeMy WebLinkAbout5909AGENDA BILL CITY OF BREMERTON O CITY COUNCIL SUBJECT: Professional Services Agreement with the Johnston Group for Federal Legislative/Agency Representation Services Study Session Date COUNCIL MEETING Date Department: Presenter: Phone: December 12, 2018 December 19, 2018 Public Works Chal Martin (360)473-5448 SUMMARY: Last spring, City administration became aware of a small lobbying services firm with a strong reputation for building collaborative working relationships with federal agencies and legislators to achieve results for local communities. The Public Works Department entered into a trial agreement with the Johnston Group in August this year and we have been impressed with the capability the Johnston Group will bring to the City. Because significant federal funding increases targeted specifically to modernize the nation's shipyards is expected over the next two decades, the timing is right for Bremerton to engage with a federal lobbying firm to assist the City in addressing a range of impacts from the Shipyard, as well as other federal issues. ATTACHMENTS: 1) Professional Services Agreement; and 2) Washington DC Itinerary FISCAL IMPACTS (Include Budgeted Amount): This contract is $5,000 per month except for travel expenses, which will be reimbursed to the Johnston Group based on actual expenses in accordance with Exhibit B. This item is included in the City's 2019 expense budget. STUDY SESSION AGENDA: ❑ Limited Presentation ® Full Presentation STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve a contract with the Johnston Group for Federal Legislative/Agency Representation Services; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ,IZApprove Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action PROFESSIONAL SERVICES AGREEMENT Federal Legislative/Agency Representation Services The City of Bremerton ("City") and the Johnston Group ("Consultant"), referred to collectively as the "Parties," enter into the following Agreement for professional services: 1. Scope: The Consultant agrees to perform the services more specifically described in the Scope and Schedule of Work, dated December 12, 2018, including any attachments thereto, attached hereto as Exhibit A, which is incorporated by reference herein. The Scope and Schedule of Work may be modified only pursuant to Section VII.H of this Agreement. If the Scope and Schedule of Work provides for unspecified additional services such services shall only be performed upon the express written request of the City. Consultant further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices in effect at the time such services are performed. II. Term: The City and the Consultant agree that work will begin on the tasks described in Exhibit A on January 1st, 2019. The parties agree that the work described in Exhibit A is to be completed as provided for in the work schedule; provided however, that additional time shall be granted by the City for excusable delays or extra work as provided for in Section IKA of this agreement. III. Compensation: In consideration of the services provided pursuant to this Agreement, the City shall pay Consultant in an amount not to exceed $60,000. Consultant's charges and bills shall conform to the fee schedule attached hereto as Exhibit B and incorporated herein by this reference. The Consultant shall submit regular billing statements detailing work performed. The descriptions shall conform to and fall within the categories set out in the Scope of Work and/or Fee Schedule. Upon receipt of a conforming billing statement, the City shall promptly process payment. PROVIDED, HOWEVER, the City reserves the right to prioritize scoped work and accelerate and/or delay work tasks under the time frame set forth in Section II herein. The Consultant's labor rates and billing fees shall be as delineated in Exhibit B. Consultant shall not perform work beyond the Scope of Work, nor shall be compensated for such work, unless the Scope of Work or amount of compensation is modified pursuant to this Agreement. Consultant shall only be compensated for additional services if requested pursuant to Section I and, if not otherwise provided, such compensation shall be in accordance with Exhibit C. If a billing statement does not conform to this Agreement, the City may withhold payment until the statement is brought into compliance. Such withholding does not relieve Consultant of its obligations under this Agreement. IV. Relationship of Parties: Consultant represents that it is skilled in the matters addressed in the Scope of Work and is performing independent functions and responsibilities within its field of expertise. Consultant and its personnel are independent Consultants and not employees of the Page 1 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 City. Consultant and its personnel have no authority to bind the City or to control the City's employees and other Consultants. None of the benefits provided by the City to its employees, including, but not limited to, compensation, insurance, and unemployment insurance are available from the City to the employees, agents, representatives, or sub -Consultants of the Consultant. Consultant will be solely and entirely responsible for its acts and for the acts of Consultant's agents, employees, representatives and sub -Consultants during the performance of this Agreement. The City may, during the term of this Agreement, engage other independent Consultants to perform the same or similar work. As an independent Consultant, Consultant is responsible for its own management. The City's administration and enforcement of this Agreement shall not be deemed an exercise of managerial control over Consultant or its personnel. As an independent Consultant, Consultant is responsible for payment of all taxes and licensing fees necessary to perform its obligations under this Agreement. These taxes and fees include but are not limited to State industrial insurance, Business & Occupation, State professional licensing, and City business licensing. If any taxes or fees due the City have been declared delinquent, the City may withhold the delinquent amount, plus any additional charges arising from the delinquency, from any payments due Consultant. V. Indemnification: A. Consultant shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the performance of this Agreement except for that portion of the injuries and damages caused by the City's sole negligence, unless Consultant is conducting work pursuant to Subsection B below. The City's review or acceptance of any of the work when completed shall not be grounds to avoid any of these covenants of indemnification. B. Architects, l:nf;incers and Any Other Professional Listed In and Performing Services Defined in RCW 4.24.115. Should a court of competent jurisdiction determine that Consultant's services provided pursuant to this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, agents and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. The provisions of this section shall survive the expiration or termination of this Agreement. Page 2 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 VI. Insurance: The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees, sub -consultants or sub -Consultants. Before beginning work on the project described in this Agreement, the Consultant shall provide a Certificate of Insurance evidencing: 1. Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage; and 2. Commercial General Liability insurance written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence and general aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual; products/completed operations/broad form property damage; explosion, collapse and underground (XCU) if applicable; and 3. 4. Professional Liability insurance with limits no less than $1,000,000 limit per occurrence/claim. 5. Workers Compensation insurance as statutorily required by the Industrial Insurance Act of the State of Washington, Title 51, Revised Code of Washington and employer's liability with limits not less than $1,000,000. Any payment of deductible or self-insured retention shall be the sole responsibility of the Consultant. All required policies shall be provided on an "occurrence" basis except professional liability insurance (if required), which may be provided on a "claims -made" basis. The City shall be named as an additional insured on the Commercial General Liability insurance policy, as respects work performed by or on behalf of the Consultant and a copy of an endorsement that is acceptable to the City, which names the City as an additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all the required insurance policies and endorsements. The City further reserves the right to reject any unacceptable policies and/or endorsements. The Consultant's Commercial General Liability insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. The Consultant's insurance shall be primary and non-contributory insurance as respects the City and shall contain a waiver of subrogation against the City for claims arising out of any operations, liabilities and obligations to which coverage applies. It shall be an affirmative obligation upon Consultant to advise the City's Risk Manager by fax at (360) 473-5161, or by certified mail, return receipt requested to City of Bremerton, Attn: Risk Management, 345 6`h Page 3 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 Street, Suite 100, Bremerton, WA 98337 within two days of the cancellation, suspension or substantive change of any insurance policy set out herein, and failure to do so shall be construed to be a breach of this Agreement. The City also reserves its unqualified right to require at any time and for any reason, proof of coverage in the form of a duplicate of the insurance policy with all endorsements as evidence of coverage. VII. General Conditions: A. Reports and Information: When requested by the City, Consultant shall furnish periodic reports and documents on matters covered by this Agreement. The reports and documents shall be furnished in the time and form requested. Consultant shall maintain accounting records in accordance with Generally Accepted Accounting Principles ("GAAP") to substantiate all billed amounts. B. Ownership and Use of Records and Documents: Original documents, drawings, designs and reports, including those in electronic format, developed under this Agreement arc the property of the City. All written information submitted by the City to the Consultant in connection with the services performed by the Consultant under this Agreement will be safeguarded by the Consultant to at least the same extent as the Consultant safeguards like information relating to its own business. If such information is publicly available or is already in Consultant's possession or known to it, or is rightfully obtained by the Consultant from third parties, Consultant shall bear no responsibility for its disclosure, inadvertent or otherwise. All data, documents and files created by Consultant under this Agreement may be stored at Consultant's office in Seattle, Washington. Consultant shall make such data, documents, and files available to the City upon its request at all reasonable times for the purpose of editing, modifying and updating as necessary until such time as the City is capable of storing such information in the City's offices. Duplicate copies of this information shall be provided to the City upon its request, and at reasonable cost. All documents, including all reports, drawings, specifications, computer software or other items prepared or furnished by Consultant pursuant to this Agreement, are instruments of service with respect to the project and are the property of the City. Any reuse by the City for other than the specific purpose intended will be at City's sole risk. C. Use of Photographs and Imagcs. Consultant shall not use or distribute photographs or images depicting City officials, personnel, property, or equipment whether prepared by Consultant or provided by City without prior written consent of the City. The City will not unreasonably withhold its consent. D. Work Performed at Consultant's Risk: Consultant shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and sub -consultants in the performance of the work hereunder and shall utilize all protection necessary for that purpose. Page 4 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 All work shall be done at Consultant's own risk, and Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. E. Place of Work: The Consultant shall perform the work authorized under this Agreement at its offices in Seattle, Washington. Meetings with the City staff as described in Exhibit A, Scope of Work, shall take place at the City's offices, or at locations mutually agreed upon by the parties. F. Entire Agreement: This Agreement and its Exhibits constitutes the entire agreement between the Parties, and the Parties acknowledge that there are no other agreements, written or oral, that have not been set forth in the text of this Agreement. G. Severabili� Should any part of this Agreement be found void, the balance of the Agreement shall remain in full force and effect. H. Modification: This Agreement may only be modified by written instrument signed by both Parties. I. Written Notices: All communications regarding this Agreement shall be sent to the parties at the addresses listed below by registered or 1 st class mail, or by personal service, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. Notices to be sent to: Notices to be sent to: CITY: CONSULTANT: Attn: Chal Martin Attn: Jake Johnston City of Bremerton 2400 NW 80" St #191 100 Oyster Bay Avenue N Seattle WA 98117 Bremerton, WA 98337 (206) 240-1324 J. Waiver: Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be deemed waiver of any other right or power. K. Non -Waiver of Breach: The failure of the City to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements or options, and the same shall be and remain in full force and effect. L. Compliance with Laws: Consultant shall comply with all applicable Federal, State, and local laws in performing its obligations under this Agreement. Page 5 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 M. Choice of Law and Venue: This Agreement shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Agreement shall be brought in Kitsap County Superior Court. N. Attorneys' Fees: In the event of litigation to enforce any of the terms or provisions herein, each party shall pay all its own costs and attorney's fees. O. Assignment: Any assignment of this agreement by the Contractor without the written consent of the City shall be void. VIII. Nondiscrimination: Consultant shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status, disability, or sexual orientation except for employment actions based on bona fide occupational qualification. IX. Termination: This Agreement shall remain in force until completion and acceptance of the services, terminated by written instrument upon mutual consent, or by the City of Bremerton for convenience. This Agreement may be immediately terminated for cause by a Party if the other Party substantially fails to perform through no fault of the terminating Party, and the non- performing Party does not commence correction of the failure of performance within thirty (30) days of the terminating Party's sending notice to the non-performing Party. Any Notice by Consultant shall include a report showing the status of all items listed in the Scope of Work current through the termination date. If the City receives reimbursement by any federal, state, or other source for work described in Section I herein, and that funding is withdrawn, reduced or limited in any way, or the project is cancelled or substantially reduced after the execution date of this Agreement and prior to the completion of the work, the City may summarily terminate this Agreement. A. Excusable Delay The right of Consultant to proceed shall not be terminated nor shall Consultant be charged with liquidated damages for any delays in the completion of the work due to: 1) any acts of the federal government in controlling, restricting, or requisitioning materials, equipment, tools, or labor by reason of war, national defense, or other national emergency; 2) any acts of the City, its consultants, or other public agencies causing such delay; and 3) causes not reasonably foreseeable by the parties at the time of the execution of the Agreement that are beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God, fires, floods, strikes, or weather of unusual severity. PROVIDED, HOWEVER, that the Consultant must promptly notify the City within ten (10) calendar days in writing of the cause of the delay. If, on the basis of the facts and the terms of this Agreement, the delay is properly excusable, the City shall, in writing, extend the time for completing the work for a period of time commensurate with the period of excusable delay. B. Rights Upon Termination: In the event of termination, the City shall pay for all services performed by the Consultant to the effective date of termination, as described on a final invoice submitted to the City. After termination, the City may take possession of all records and data within the Consultant's possession pertaining to this project which may be used by the City Page 6 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 without restriction. Any such use not related to the project which Consultant was contracted to perform shall be without liability or legal exposure to the Consultant. X. Suspension & Debarment. For contracts involving Federal funding, Consultant hereby certifies, by signing this agreement, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. Consultant shall provide immediate written notice to the City if at any time it learns that it is or has become ineligible for certification. Should Consultant enter into a covered transaction with another firm, Consultant agrees by signing this agreement that it will verify that the firm with whom it intends to do business is not debarred, suspended, ineligible, excluded or disqualified. IN WITNESS WHEREOF, the parties below have executed this Agreement. CITY: CITY OF BREMERTON By: Wfil'o , Print Nam U Greg Wheeler Its: Mayor Date: ► J vo ►q APPROVED AS TO FORM: OL By: Bremerton City A t rney CONSULTANT: ,}oONS i ON 6-20t1P By: �-- Print 'NanW Jake Johnston Its: het£ S+ b£ 4r Date: ` '' It 9 ATTEST: ,.,.! vl"'.�it1 I, R:1d,cga1Tcga1\Forms\FORMS ON COBWEB\Professional Services Agreement Rev. 03 2018.doex Page 7 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 Exhibit A Scope and Schedule of Work This scope reflects short-term strategies as well as building ongoing support in 2019 for longer-term initiatives in the years ahead. Additionally, the Johnston Group follows work being done by partner agencies and organizations and will levy support when and where appropriate. Some of these organizations include the Association of Washington Cities, the Association of Defense Communities, the Puget Sound Regional Council and Kitsap County, among others. These items are listed in priority order. 1. Develop and Implement Improved Pedestrian and Commuter Strategies for the Puget Sound Naval Shipyard • The Puget Sound Naval Shipyard (PSNS) is a key economic factor for the City of Bremerton with insufficient parking, pedestrian and bicycle infrastructure and drop-off areas for a commuting workforce. The City has done an excellent job of researching the challenge and looking at potential mitigation strategies. To further this effort, the Johnston Group will work with the City to build a strong relationship with the Office of Economic Adjustment (OEA) at the Pentagon to develop a comprehensive strategy and capital plan. This will require the city to work formally and collaboratively with the PSNS and Naval Base Kitsap (NBK) Base leadership. We will work with the City to facilitate this formal and collaborative communication. • In 2018, the City engaged with NBK base leadership ahead of the City's DC trip in December to discuss the City's agenda and how the City and NBK can work together. This effort is expected to enable the City to convey the message to Navy leadership and the OEA that the City and NBK are active partners. In December, we will work with the City to engage with OEA to fund a comprehensive plan looking at all of the various ideas under discussion (transit route improvements, sidewalk enhancements, kiss and ride drop-off locations, new parking facilities, etc.) and create a capital plan with identified funding sources. This effort, if successful, will be followed with more engagement with PSNS, NBK and other influencers to support funding for the recommendations contained in the OEA study. 2. Defense Infrastructure Program and Funding In 2018, Congress included the creation of the Defense Community Infrastructure Program (DCIP) in the Defense Authorization bill with an initial authorization of $100 million for the program. This program was the Page 8 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 result of a multiple -year effort led by the City of Lakewood and pushed by Rep. Denny Heck with the support of Rep. Derek Kilmer and Rep. Adam Smith. This new federal program will create a new funding program for the Department of Defense to help cities construct infrastructure that serves military installations. This is a tremendous opportunity for the City of Bremerton and lays out some clear steps for us in 2019 that should be among the City's top policy, funding, and legislative priorities for 2019. • Creation of the Program o The Defense Authorization bill provides the authority to the Department of Defense (DOD) to set up this new program but the specifics of which Agency and how the program will be administered are to be determined. The City should advocate that the DCIP is administered by the Office of Economic Adjustment and is created in such a way that the City and other analogous urbanized areas have a clear priority for this program's funds. • Funding of the Program o The Defense Authorization bill of 2018 authorized $100 million for this program but Congress did not appropriate any funds for the FY2019 budget. The City should advocate for the full authorization amount in the appropriations bills for FY2020. o Concurrently, the City should be building a list of potential projects that would apply for funding through this new authority. • Protecting the Program from Pushback o Despite the program winning support from Congress in 2018, it was not universally supported by Congress, nor the DOD. The City should make sure that this program is set up and funded in 2019 - and that no actions that dismantle the program succeed. 3. Transportation • Currently, there are a lack of federal funding programs that the City can use for its transportation and infrastructure goals. To make investments in local infrastructure in this environment, the City should pursue targeted requests of its federal delegation and support broader efforts to define more opportunities at a federal level. Page 9 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 Control of the House will switch political parties in 2019, perhaps providing the possibility of an infrastructure bill. We also expect the Transportation Committees in both the House and Senate to start work for the next Transportation bill as it the current one expires in 2020. a Finally, we expect that earmarks may make a comeback in 2019 for public agencies. • Each of these opportunities defines some policy priorities for the City of Bremerton. • Funding for Non -Motorized Infrastructure o For decades, Congress has debated the amount of funding from the federal gas tax revenues that should go towards projects that are not directly highway related. These projects include transit systems and non -motorized projects like sidewalks, trails and other programs. o The share of federal dollars being made available to non -motorized projects has diminished over the past few transportation bills and there is a concerted effort to eliminate funding for transit and non - motorized access all together. As Congress debates a new Transportation bill and considers the continued funding of the BUILD Program (formerly known as the Transportation Investment Generating Economic Recovery, or TIGER, discretionary grant program), the City should continue to lobby for a portion of federal infrastructure dollars be allocated for transit and non -motorized projects. • Medium Sized City Set Aside o Most federal infrastructure spending has a rural set aside which is critical for smaller communities to be able to access federal dollars. There is no comparable medium sized city set aside. Instead, medium sized cities compete against large cities like Seattle, Portland and Los Angeles for limited resources. Medium sized cities need a defined pool to compete within so as to make federal funds available in a way that simply aren't in their current status. o As Congress debates a new Transportation bill and considers the continued funding of the BUILD Program (formerly known as the Transportation Investment Generating Economic Recovery, or TIGER, discretionary grant program), the City should lobby for a portion of federal infrastructure dollars be set aside for medium sized cities. This policy position is consistent with the work the city has been Page 10 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 doing for years and is supported broadly by similar sized cities throughout the state. o The BUILD program is the key federal funding program for local infrastructure investments. Yet, all cities compete within the same funding pool, putting smaller and medium sized cities at a competitive disadvantage for funding even as the transit and commuter challenges are similar to those of larger communities. There are efforts in Congress to create funding tiers so that cities of similar size can compete for federal funds. The City should support efforts to designate a portion of federal transportation spending for cities under 100,000 in population size. • Funding for MPOs o Federal transportation funding is generally distributed in Washington State via the State Department of Transportation (DOT) or via a Metropolitan Planning Organization (MPO) like the Puget Sound Regional Council (PSRC). In the most recent Transportation bill from 2016, Congress changed the allocation of funds from 50%-50% between DOTS and MPOs to 55%-45% with MPOs gaining the larger amount. o As Congress starts to consider the next Transportation bill, the City should stongly consider support for increasing this proportion to the benefit of MPOs and oppose any attempt to preclude the formation of new MPOs to meet rel;ional needs. This should dovetail with the City's work at PSRC to more highly value cities with military installations in competitive funding pools. 4. Defense Policy / Issues As the host community to the Puget Sound Naval Shipyard and Naval Base Kitsap, the City is keenly impacted by Defense policies. The following issues comprise a key portion of our 2019 federal policy agenda. c Base Realignment and Closure (BRAC) The City should support a BRAC round to focus limited federal funding on critical military infrastructure needs. The City should urge Congress to invest in the Office of Economic Adjustment with any BRAC round. While the prospects of a BRAC round in 2019 are unlikely, the DOD and our congressional delegation are supportive. A BRAC round is the best way to direct military construction and infrastructure Page I 1 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 funding to the bases and locations that need the most investments. More, for bases that see an increase in missions or personnel following a BRAC, Congress should consider creating new funding support to address deficiencies on those installations. • Office of Economic Adjustment (OEA) o As Congress moves forward with annual Defense Authorization bills, preserving funding for the Office of Economic Adjustment at the Pentagon is a key priority for the City. OEA funds economic studies and planning for cities that experience reductions or growth in their military installations. We expect OEA to become a critical partner to the City for many of our shared initiatives in support of PSNS and NBK. Funding for OEA is under persistent threat and the City should lobby for stable funding for OEA in recognition of its strong role in the economic growth in our region. • Association of Defense Communities Engagement o The Association of Defense Communities (ADC) has the potential to become a key ally for the City. The ADC's support for the Defense Infrastructure Program was key to enactment in 2018. Additionally, its steadfast support for the Office of Economic Adjustment has been critically important for the viability of that agency. o We note the City did become a member of the Association of Defense Communities in 2018. The City should look for ways to connect with ADC and consider traveling to the ADC conferences with the eventual goal of seeking committee and board positions with ADC. Incidentally, the Executive Director of ADC, Tim Ford, splits his time between Washington, D.C. and Seattle. We will seek to host Mr. Ford in Bremerton with an emphasis on securing ADC support for funding the Defense Infrastructure Program. • Support for MilCon Projects at PSNS and NBK o As the City continues to develop its relationships with base leadership at PSNS and NBK, it should lobby for projects at both installations that the bases are seeking funding support for within the congressional spending bills. Page 12 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 5. Community and Economic Development Programs • Restoration of Earmark Authority o Congress is considering restoring the earmarking authority to the legislative branch following the election. The Administration is currently not funding some of the obligations directed by Congress and many elected officials want more authority over how funds are allocated. o The City should support earmarks with the following criteria: Only available to public agencies. Fully transparent process for requests. Limited to economic development, infrastructure, transportation and human services funding programs. Community Development Block Grants (CDBG) and the Home Investment Partnership Program (HOME) o The City of Bremerton uses Community Development Block Grant (CDBG) and Home Investment Partnership Program (HOME) funding to support local initiatives that benefit the City's vulnerable population. Funding in the CDBG program increased by 30% in 2018 after falling to a decade low in 2017. The City should support the CDBG and HOME program at the federal level and lobby for increased funding that could be put to use in Bremerton immediately. • Preserving Access to Internet Based Sales Tax o Following a Supreme Court decision that allows cities and states to collect owed sales tax due from online sales, the mechanism for collecting these revenues at a local level is currently unknown. The City should support efforts to access the funds owed through sales tax and oppose any efforts at the federal or state level that pre-empt these funds from coming to the City. • Support Other Municipal Tax Policy o Congress has adjusted various tax policies that have a direct impact on the City of Bremerton, including the New Markets Tax Credit, the Affordable Housing Tax Credit and the State and Local Sales Tax Deduction. These policies, in addition to policies that would negatively value municipal bonding authority, remain under debate in Congress in 2019 and the City should advocate for strong municipal authority Page 13 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 and tax credits that facilitate economic development and meet our region's critical housing needs. 6. Support the Green Stormwater Infrastructure Initiatives. Representatives Derek Kilmer and Denny Heck are leading a long-term strategy to modify federal laws, funding opportunities and programs to benefit the Puget Sound ecosystem. This effort has multiple policy components: o Add green stormwater treatment as a scoring criteria for federal transportation awards. This would advantage projects seeking federal funds that include a stormwater management component. o Create a tax credit program for stormwater retrofits and new development. If enacted, this program would provide a 50% tax credit for individuals and developers that incorporate stormwater projects such as rain gardens, bioswales and similar projects. o Create a new federal program to fund culvert replacement, fish passage improvements and habitat restoration in municipal streams and creeks. Additional Support Activities Below is a detailed summary of likely activities that will be performed for the City of Bremerton under this engagement, and subsequent engagements. Develop a Regional and Federal Government Relations Agenda for the City of Bremerton • Work with the City of Bremerton to identify its funding needs and get detailed information about priority projects. • Review City capital infrastructure plans and budget to ascertain the full range of City initiatives and federal funding eligibility (i.e. utility infrastructure, public safety equipment and training, transportation master plan, etc). • Determine which City projects are eligible for support through the existing federal and regional grant programs. • Ascertain which City projects are supported by the Washington State Department of Transportation, the Washington State Department of Community, Trade and Economic Development, Kitsap County and other governmental entities. • Advise the City of Bremerton about which projects ought to be prioritized for federal grants, directed federal spending via appropriations, targeted federal initiatives (e.g. infrastructure proposals via budget negotiations if applicable), and authorization bills. Page 14 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 • Review the federal budget programs that directly flow through to the City of Bremerton and prepare a risk assessment for each that could be part of the City's federal agenda. • Consider the impact of federal authorization legislation and what opportunities exist for municipal priorities. • Review delegation legislative priorities and their potential impacts - both positive and negative - on the City of Bremerton. • Understand the funding and policy objectives of local partners (e.g. local economic development agencies, nonprofits, etc.) to seek collaborative opportunities. Support the City of Bremerton's Identified Agenda • Lobby the congressional delegation to support the goals of the City of Bremerton throughout the year. • Lobby for - or against - federal agency decisions and federal policies that would impact the City of Bremerton. • Ensure that all delegation Members of Congress and their staff understand the City's objectives. • At a regional level, support policy and funding decisions that impact the City of Bremerton within regional bodies such as the Puget Sound Regional Council. • Liaise with the City's state lobbyist in support of a shared agenda as directed. • Develop, augment or deepen relationships between the City and key federal agencies with access to infrastructure and economic development funding such as the Office of Economic Adjustment (OEA) at the Pentagon. • Assist the City with finding avenues for federal and regional funding to support its priority infrastructure and economic development objectives. • Work with the City to identify potential supporters for its agenda and coordinate engagement. • Help the City create materials to highlight its projects in ways that will drive support among government funding partners. • Prepare any relevant materials for the congressional delegation to use in seeking funding for City objectives (e.g. drafting legislative language, correspondence to agencies or Congressional committees, etc.). • Maintain an open dialogue between the City and its federal delegation throughout the engagement. • Assist the City with obtaining awarded funding if necessary at a regional and federal level. • Monitor and respond to all congressional action that provides opportunities for the City of Bremerton to receive funding or policy support. • Determine legislative tactics Congress may utilize to enact federal spending bills and implement a strategy to preserve funds targeted for the City of Bremerton. • Monitor the budget and appropriations process throughout the year with regular legislative updates provided to the City. • Draft correspondence from City to the delegation for project and policy support. Page 15 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 Assist with a community event recognizing the federal investment in City projects if applicable. Washington, D.C. Lobbying Meetings • Schedule meetings in Washington, D.C. with City of Bremerton representatives and Congressman Derek Kilmer and Senators Murray and Cantwell. Moving forward, the City may also meet with other members of the state congressional delegation based on their committee assignments and geographic proximity. Those Members of Congress could include Congressman Larsen, Congresswoman Del Bene, Congresswoman McMorris- Rodgers, Congresswoman Herrera Butler, Congressman Smith and Congressman Newhouse, among others. • Include the Washington, D.C.-based liaison for Governor Inslee as a part of our Washington, D.C. meetings and outreach strategy. • The City will also meet with other federal agencies and organizations in Washington, D.C. as relevant to our federal agenda. These agencies could include the U.S. Department of Transportation, the Office of the Secretary of Defense, the U.S. Navy, the Office of Economic Adjustment, the Association of Defense Communities, and other federal agencies as necessary and appropriate. • Identify and prepare key congressional staff for appropriations requests and meetings with City of Bremerton staff and elected officials. • Schedule, attend and facilitate meetings in Washington, D.C. • Prepare City of Bremerton officials for congressional meetings. • Follow up to all meetings as appropriate. • Ensure that district and Washington, D.C. based key staff in each delegation office are aligned in support of City's goals. • Maintain regular communication with key legislative staff and elected officials throughout the year in support of the City's funding and policy agenda. Involvement of City of Bremerton Officials • Issue monthly activity reports to City representatives detailing specific actions taken on the City's behalf. • Engage the City as necessary to contact Members of Congress and their staff as appropriate in support of the federal agenda. • Counsel the City about district based lobbying activities to further the City's legislative and federal funding priorities, including meeting in Bremerton with members of the federal delegation, participation in congressional sponsored events in Washington State and the creation of media or community events where the City could host targeted Members of Congress. • Draft correspondence as appropriate for the City to send to Congress on policy issues and other legislative concerns. • Work to include City of Bremerton leadership in delegation based policy discussions as they develop and as appropriate. Page 16 or20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 Delegation Engagement with the City of Bremerton • Solicit support from each Member of Congress that we are seeking support from (i.e. Congressman Derek Kilmer, Senator Patty Murray and Senator Maria Cantwell) for our federal funding and policy requests. • Maintain year-long direct engagement with targeted Members of Congress and their staff. • Prioritize a visit to the City of Bremerton by district congressional staff to get a firsthand look at the City's projects and have an in-depth discussion about the City's priorities. Grant Funding Strategy • Monitor all federal grant availability announcements and inform the City about any possibilities for federal funds. • Work with the City to modify the eligibility requirements for grant programs that don't currently meet City needs. • Solicit support from Governor Inslee, Congressman Derek Kilmer, Senator Patty Murray and Senator Maria Cantwell for the relevant City grant applications. Prepare and Support Requests for the City of Bremerton in any Relevant Federal Infrastructure Legislation • Given that Congress may start hearings leading to the reauthorization of the federal transportation bill in 2020, the City may elect to lobby for a project or for project funding criteria that meets local requirements. • Other funding instruments may include an infrastructure stimulus bill, an economic development instrument, reauthorization of the Defense Bill or other unknown legislative and budget bills. • Advise the City about the creation of collateral materials for federal funding requests through these federal funding instruments. • Work with the City to identify potential supporters for project requests and secure letters of endorsement. • Coordinate formal submission of funding requests and ensure compliance with all deadlines. • Determine legislative tactics Congress may utilize to enact these bills and implement a strategy to preserve funds targeted for the City of Bremerton. • Contact key congressional staff to obtain support for the City's federal funding requests and respond to any questions or concerns as appropriate. • Assist congressional staff in the preparation of letters of request to relevant House and Senate oversight, authorization and appropriations committees and subcommittees. Page 17 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 Monitor the budget and authorization process throughout the year with regular legislative updates provided to the City. TIMELINE The federal and regional process requires a year-round effort for maximum impact. The time and work required can change month to month as decisions are made. Below is a brief timeline of the major activities that are likely to happen in 2019. January - March 2019 • Work with the City to create supporting materials for project requests. • Identify and help recruit public partners for each project. • Ascertain appropriations and budget timelines, other federal funding timelines and authorization timelines. • Review reauthorized federal grant programs and work with City to review project eligibility requirements. • Continue engagement strategy with all available funding mechanisms. • Schedule, attend and facilitate a set of meetings in Washington, D.C. with congressional delegation and other D.C. - based agencies and organizations to request support for City of Bremerton projects and priorities. These may include meetings with the Pentagon and the Association of Defense Communities, among others. • At a regional level, support the city's agenda with the Puget Sound Regional Council and build allies in support of prioritizing the role that defense installations play in the regional economy. • Outreach to district staff for congressional offices to explain projects and solicit support. • Prioritize an in -district meeting with the City of Bremerton and Congressman Derek Kilmer. • Finalize collateral materials and prep City of Bremerton delegation for Washington, D.C. trip. • Closely follow the implementation of the Defense Infrastructure Program and prepare to support city applications as appropriate. • Draft, edit, finalize and submit all federal funding forms to all relevant congressional offices for all projects, if appropriate to do so. • Continue to monitor the development of budget agreements, appropriations bills and other legislative initiatives that would impact the development and advancement of our agenda. • Track other policy proposals of interest to the City of Bremerton. • Draft correspondence and opinion papers as appropriate. Page 18 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 April - June 2019 • Follow up to Washington, D.C. visits. • Lobby delegation to include our requests as a part of federal spending bills. • Seek grant opportunities for City projects and seek support from Congressional delegation for all submitted grants. • Monitor budget process and report to City of Bremerton. • Continue district -based meetings with congressional staff and/or schedule visits for the summer. • Continue to engage at a regional level in support of the City. • Potentially schedule and attend another set of meetings in Washington, D.C. on behalf of the City of Bremerton and its project partners. • Monitor and lobby for City projects in any Infrastructure spending or Authorization bills that have funding opportunities for the City of Bremerton. • Continue to track all funding bills, developments and opportunities as appropriate. • Continue to track other policy programs of interest to the City. • Draft correspondence and white papers as appropriate. July - December 2019 • Monitor and report on budget, authorization and appropriations bills to the City of Bremerton. • Monitor and lobby for City projects in any stimulus, infrastructure or authorization bills that have funding opportunities for the City of Bremerton. • Continue to track all funding bills, developments and opportunities as appropriate. • Continue to track other policy programs of interest to the City. Draft correspondence and opinion papers as appropriate. • Conduct district based tours and meetings with the City. • Continue to engage at a regional level in support of the City. • Potentially conduct another round of meetings in Washington, D.C. if necessary. Page 19 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 Exhibit B Fee Schedule The Johnston Group will reimbursed monthly for a fixed retainer of $5,000 from January 1, 2019 through December 31, 2019. Consultant shall bill the City monthly; invoices will include activity reports to City representatives detailing specific actions taken on the City's behalf during the previous month. This retainer includes all expenses with the exception of airfare and lodging connected to City trips to Washington, D.C. Travel expenses will be billed to City at cost and in arrears. Whenever possible, the Johnston Group will combine client travel to Washington, D.C. to further reduce costs. Page 20 of 20 Bremerton/Johnston Group Federal Legislative/Agency Representation Services Rev. 12/2018 ACORO®DATE CERTIFICATE OF LIABILITY INSURANCE (MM/DD/YYYY) CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, 12/19/2018 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 Liberty Mutual Insurance PO Box 188065 Fairfield, OH 45018 CONTACT NAME: PHONENo, 800-962-7132 nn/c No): 800-845-3666 E-MAIL ADDRESS: BusinessService LibertMutual.com INSURERS AFFORDING COVERAGE NAIC # BKS57562139 INSURERA: Ohio Security Insurance Company 24082 1/5/2020 INSURED Johnston Group LLC 2400 NW 80th Street Ste 191 INSURER B : American Fire and CasualtyCompany 24066 INSURER C: i INSURERD: ✓' Seattle WA 98117 INSURER E : INSURER F : MED EXP (Any one person) $ 15,000 COVERAGES CFRTIFICATF NIIMRFR� nFo07n')a RFVICIf1N NIIIIARFR- 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 LTR I TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DD/YYYY LIMITS A �/ COMMERCIAL GENERAL LIABII,LTY ✓ ,/ BKS57562139 1/5/2019 1/5/2020 EACH OCCURRENCE $1 000'0 CLA�-MADE _,/ f3CCCCUR '�� DAMAGE TO RENTED PREMISES Ea occurrence $ 1,000,000 MED EXP (Any one person) $ 15,000 ✓ Professional Liability PERSONAL & ADV INJURY $ 1 ,OO GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,*VO ' ✓ POLICY D PRO- JECT D LOC PRODUCTS - COMP/OP AGG $2,00 $ OTHER: B AUTOMOBILE LIABILITY BAA57562139 1/5/2019 1/5/2020 COMBINED SINGLE LIMIT $ Ea accident 1,00d BODILY INJURY (Per person) $ ANY AUTO OWNEDSCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) $ HIRED NON -OWNED AUTOS ONLY ✓ AUTOS ONLY PROPERTYDAMAGE $ Per accident $ UMBRELLA LIAB HCLAIMS-MADE OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB DED I I RETENTION $ $ A WORKERS COMPENSATION BKS57562139 1/5/2019 1/5/2020 AND EMPLOYERS' LIABILITY Y / N ANYPROPRIETOR/PARTNER/EXECUTIVEE.L. OFFICER/MEMBEREXCLUDED? ❑ N/A STATUTE ORH EACH ACCIDENT $ 1,00 GOO, E.L. DISEASE- EA EMPLOYEE $ 1 OOO 0 (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $2.000.000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space required) The City of Bremerton, as respects work performed by or on behalf of the Consulta t, ar dditior�ial sured if required by written contract or written agreement subject to eneral Liability Blanket Additional Insured Provision. Waiver ubrogation applies. This Policy is PAiTit and we will not ask for contribution of the Policy issued to the Additional Insured. CERTIFICATE HOLDER CANCELLATION City of Bremerton SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 6th Street, Suite 100, THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 345 Bremerton WA 98te 1 ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Marilyn Rogers / ll ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD 45997426 19-20 Master Certificate I Marilyn Rogers 1 12/19/2018 9:03:08 AM (EST) I Page 1 of 9 COMMERCIAL GENERAL LIABILITY CG 88 10 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMERCIAL GENERAL LIABILITY EXTENSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART INDEX SUBJECT PAGE NON -OWNED AIRCRAFT 2 NON -OWNED WATERCRAFT 2 PROPERTY DAMAGE LIABILITY — ELEVATORS 2 EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) 2 MEDICAL PAYMENTS EXTENSION 3 EXTENSION OF SUPPLEMENTARY PAYMENTS — COVERAGES A AND B 3 ADDITIONAL IN EDS — BY CONTRACT, AGREEMENT OR PERMIT 3 PRIMARY A ON -CONTRIBUTORY — ADDITIONAL INSURED EXTENSION 5 ADDITIONAL INSUREDS — EXTENDED PROTECTION OF YOUR "LIMITS OF INSURANCE" 6 WHO IS AN INSURED — INCIDENTAL MEDICAL ERRORS/MALPRACTICE AND WHO IS AN INSURED — 6 FELLOW EMPLOYEE EXTENSION — MANAGEMENT EMPLOYEES NEWLY FORMED OR ADDITIONALLY ACQUIRED ENTITIES 7 FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES 7 KNOWLEDGE OF OCCURRENCE, OFFENSE, CLAIM OR SUIT 7 LIBERALIZATION CLAUSE 7 BODILY INJURY REDEFINED 7 EXTENDED PROPERTY DAMAGE 8 WAIVER OF TRANSFER OF RIMS OF RECOVERY AGAINST OTHERS TO US — 8 WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Pagel of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 1 12/19/2018 9:03:06 AM (EST) I Page 2 of 9 With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement. A. NON -OWNED AIRCRAFT Under Paragraph 2. Exclusions of Section I — Coverage A - Bodily Injury And Property Damage Liability, exclusion g. Aircraft, Auto Or Watercraft does not apply to an aircraft provided: 1. It is not owned by any insured,- 2. nsured; 2. It is hired, chartered or loaned with a trained paid crew; 3. The pilot in command holds a currently effective certificate, issued by the duly constituted authority of the United States of America or Canada, designating her or him a commercial or airline pilot; and 4. It is not being used to carry persons or property for a charge. However, the insurance afforded by this provision does not apply if there is available to the insured other valid and collectible insurance, whether primary, excess (other than insurance written to apply specifically in excess of this policy), contingent or on any other basis, that would also apply to the loss covered under this provision. B. NON -OWNED WATERCRAFT Under Paragraph 2. Exclusions of Section 1— Coverage A — Bodily Injury And Property Damage Liability, Subparagraph (2) of exclusion g. Aircraft, Auto Or Watercraft is replaced by the following: This exclusion does not apply to: (2) A watercraft you do not own that is: (a) Less than 52 feet long; and (b) Not being used to carry persons or property for a charge. C. PROPERTY DAMAGE LIABILITY — ELEVATORS Under Paragraph 2. Exclusions of Section I — Coverage A— Bodily Injury And Property Damage Liability, Subparagraphs (3), (4) and (6) of exclusion j. Damage To Property do not apply if such "property damage" results from the use of elevators. For the purpose of this provision, elevators do not include vehicle lifts. Vehicle lifts are lifts or hoists used in automobile service or repair operations. 2. The following is added to Section IV — Commercial General Liability Conditions, Condition 4. Other Insurance, Paragraph b. Excess Insurance: The insurance afforded by this provision of this endorsement is excess over any property insurance, whether primary, excess, contingent or on any other basis. D. EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) If Damage To Premises Rented To You is not otherwise excluded from this Coverage Part: Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury and Property Damage Liability: a. The fourth from the last paragraph of exclusion j. Damage To Property is replaced by the following: Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire, lightning, explosion, smoke, or leakage from an automatic fire protection system) to: (i) Premises rented to you for a period of 7 or fewer consecutive days; or (ii) Contents that you rent or lease as part of a premises rental or lease agreement for a period of more than 7 days. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" to contents of premises rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to this coverage as described in Section III — Limits of Insurance. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 1 12/19/2016 9:03:08 AM (EST) I Page 3 of 9 b. The last paragraph of subsection 2. Exclusions is replaced by the following: Exclusions c. through In. do not apply to damage by fire, lightning, explosion, smoke or leakage from automatic fire protection systems to premises while rented to you or temporarily occupied by you with permission of the owner. A separate limit of insurance applies to Damage To Premises Rented To You as described in Section III — Limits Of Insurance. Paragraph 6. under Section III — Limits Of Insurance is replaced by the following: Subject to Paragraph 5. above, the Damage To Premises Rented To You Limit is the most we will pay under Coverage A for damages because of "property damage" to: a. Any one premise: (1) While rented to you; or (2) While rented to you or temporarily occupied by you with permission of the owner for damage by fire, lightning, explosion, smoke or leakage from automatic protection systems; or b. Contents that you rent or lease as part of a premises rental or lease agreement. 3. As regards coverage provided by this provision D. EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) - Paragraph 9.a. of Definitions is replaced with the following: 9.a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning, explosion, smoke, or leakage from automatic fire protection systems to premises while rented to you or temporarily occupied by you with the permission of the owner, or for damage to contents of such premises that are included in your premises rental or lease agreement, is not an "insured contract'. E. MEDICAL PAYMENTS EXTENSION If Coverage C Medical Payments is not otherwise excluded, the Medical Payments provided by this policy are amended as follows: Under Paragraph 1. Insuring Agreement of Section I — Coverage C — Medical Payments, Subparagraph (b) of Paragraph a. is replaced by the following: (b) The expenses are incurred and reported within three years of the date of the accident; and F. EXTENSION OF SUPPLEMENTARY PAYMENTS — COVERAGES A AND B Under Supplementary Payments — Coverages A and B, Paragraph 1.b. is replaced by the following: b. Up to $3,000 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. Paragraph 1.d. is replaced by the following: d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $500 a day because of time off from work. G. ADDITIONAL INSUREDS - BY CONTRACT, AGREEMENT OR PERMIT 1. Paragraph 2. under Section II — Who Is An Insured is amended to include as an insured any person or organization whom you have agreed to add as an additional insured in a written contract, written agreement or permit. Such person or organization is an additional insured but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused in whole or in part by: a. Your acts or omissions, or the acts or omissions of those acting on your behalf, in the performance of your on going operations for the additional insured that are the subject of the written contract or written agreement provided that the "bodily injury' or "property damage" occurs, or the "personal and advertising injury" is committed, subsequent to the signing of such written contract or written agreement; or © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 1 12/19/2018 9:03:08 AM (EST) 1 Page 4 of 9 b. Premises or facilities rented by you or used by you; or The maintenance, operation or use by you of equipment rented or leased to you by such person or organization; or d. Operations performed by you or on your behalf for which the state or political subdivision has issued a permit subject to the following additional provisions: (1) This insurance does not apply to "bodily injury", "property damage", or "personal and advertising injury' arising out of the operations performed for the state or political subdivision; (2) This insurance does not apply to "bodily injury" or "property damage" included within the "completed operations hazard". (3) Insurance applies to premises you own, rent, or control but only with respect to the following hazards: a) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners, or decorations and similar exposures; or (b) The construction, erection, or removal of elevators; or (c) The ownership, maintenance, or use of any elevators covered by this insurance. However: The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. With respect to Paragraph 1.a. above, a person's or organization's status as an additional insured under this endorsement ends when: (1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. With respect to Paragraph 1.b. above, a person's or organization's status as an additional insured under this endorsement ends when their written contract or written agreement with you for such premises or facilities ends. With respects to Paragraph 1.c. above, this insurance does not apply to any "occurrence" which takes place after the equipment rental or lease agreement has expired or you have returned such equipment to the lessor. The insurance provided by this endorsement applies only if the written contract or written agreement is signed prior to the "bodily injury" or "property damage". We have no duty to defend an additional insured under this endorsement until we receive written notice of a "suit" by the additional insured as required in Paragraph b. of Condition 2. Duties In the Event Of Occurrence, Offense, Claim Or Suit under Section IV — Commercial General Liability Conditions. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 1 12/19/2018 9:03:08 AM (EST) I Page 5 of 9 With respect to the insurance provided by this endorsement, the following are added to Paragraph 2. Exclusions under Section I - Coverage A - Bodily Injury And Property Damage Liability: This insurance does not apply to: a. "Bodily injury" or "property damage" arising from the sole negligence of the additional insured. b. "Bodily injury" or "property damage" that occurs prior to you commencing operations at the location where such "bodily injury" or "property damage" occurs. "Bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: (1) The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (2) Supervisory, inspection, architectural or engineering activities This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage", or the offense which caused the "personal and advertising injury", involved the rendering of, or the failure to render, any professional architectural, engineerir(g or surveying services. d. "Bodily injury" or "property damage" occurring after: (1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. e. Any person or organization specifically designated as an additional insured for ongoing operations by a separate ADDITIONAL INSURED — OWNERS, LESSEES OR CONTRACTORS endorsement issued by us and made a part of this policy. 3. With respect to the insurance afforded to these additional insureds, the following is added to Section III — Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: a. Required by the contract or agreement; or b. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. H. PRIMARY AND NON-CONTRIBUTORY ADDITIONAL INSURED EXTENSION This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this policy. Condition 4. Other Insurance of SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS is amended as follows: a. The following is added to Paragraph a. Primary Insurance: If an additional insured's policy has an Other Insurance provision making its policy excess, and you have agreed in a written contract or written agreement to provide the additional insured coverage on a primary and noncontributory basis, this policy shall be primary and we will not seek contribution from the additional insured's policy for damages we cover. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 5 of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 112/19/2018 9:03:08 AM (EST) I Page 6 of 9 b. The following is added to Paragraph b. Excess Insurance: When a written contract or written agreement, other than a premises lease, facilities rental contract or agreement, an equipment rental or lease contract or agreement, or permit issued by a state or political subdivision between you and an additional insured does not require this insurance to be primary or primary and non-contributory, this insurance is excess over any other insurance for which the additional insured is designated as a Named Insured. Regardless of the written agreement between you and an additional insured, this insurance is excess over any other insurance whether primary, excess, contingent or on any other basis for which the additional insured has been added as an additional insured on other policies. ADDITIONAL INSUREDS - EXTENDED PROTECTION OF YOUR "LIMITS OF INSURANCE" This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this policy. The following is added to Condition 2. Duties In The Event Of Occurrence, Offense, Claim or Suit: An additional insured under this endorsement will as soon as practicable: a. Give written notice of an 'occurrence" or an offense that may result in a claim or "suit" under this insurance to us; b. Tender the defense and indemnity of any claim or "suit" to all insurers whom also have insurance available to the additional insured; and C. Agree to make available any other insurance which the additional insured has for a loss we cover under this Coverage Part. d. We have no duty to defend or indemnify an additional insured under this endorsement until we receive written notice of a "suit' by the additional insured. 2. The limits of insurance applicable to the additional insured are those specified in a written contract or written agreement or the limits of insurance as stated in the Declarations of this policy and defined in Section III — Limits of Insurance of this policy, whichever are less. These limits are inclusive of and not in addition to the limits of insurance available under this policy. WHO IS AN INSURED - INCIDENTAL MEDICAL ERRORS / MALPRACTICE WHO IS AN INSURED - FELLOW EMPLOYEE EXTENSION - MANAGEMENT EMPLOYEES Paragraph 2.a.(1) of Section II - Who Is An Insured is replaced with the following: (1) "Bodily injury" or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), to a co -"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co -"employee" or "volunteer worker" as a consequence of Paragraph (1) (a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1) (a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. However, if you are not in the business of providing professional health care services or providing professional health care personnel to others, or if coverage for providing professional health care services is not otherwise excluded by separate endorsement, this provision (Paragraph (d)) does not apply. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 1 12/19/2018 9:03:08 AM (EST) I Page 7 of 9 Paragraphs (a) and (b) above do not apply to "bodily injury" or "personal and advertising injury" caused by an "employee" who is acting in a supervisory capacity for you. Supervisory capacity as used herein means the "employee's" job responsibilities assigned by you, includes the direct supervision of other "employees" of yours. However, none of these "employees" are insureds for "bodily injury" or "personal and advertising injury" arising out of their willful conduct, which is defined as the purposeful or willful intent to cause "bodily injury" or "personal and advertising injury", or caused in whole or in part by their intoxication by liquor or controlled substances. The coverage provided by provision J. is excess over any other valid and collectable insurance available to your "employee". K. NEWLY FORMED OR ADDITIONALLY ACQUIRED ENTITIES Paragraph 3. of Section II - Who Is An Insured is replaced by the following: Any organization you newly acquire or form and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the expiration of the policy period in which the entity was acquired or formed by you; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and C. Coverage B does not apply to "personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. d. Records and descriptions of operations must be maintained by the first Named Insured. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations or qualifies as an insured under this provision. L. FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES Under Section IV — Commercial General Liability Conditions, the following is added to Condition 6. Representations: Your failure to disclose all hazards or prior "occurrences" existing as of the inception date of the policy shall not prejudice the coverage afforded by this policy provided such failure to disclose all hazards or prior "occurrences" is not intentional. M. KNOWLEDGE OF OCCURRENCE, OFFENSE, CLAIM OR SUIT Under Section IV — Commercial General Liability Conditions, the following is added to Condition 2. Duties In The Event of Occurrence, Offense, Claim Or Suit: Knowledge of an "occurrence", offense, claim or "suit" by an agent, servant or "employee" of any insured shall not in itself constitute knowledge of the insured unless an insured listed under Paragraph 1. of Section II — Who Is An Insured or a person who has been designated by them to receive reports of "occurrences", offenses, claims or "suits" shall have received such notice from the agent, servant or "employee". N. LIBERALIZATION CLAUSE If we revise this Commercial General Liability Extension Endorsement to provide more coverage without additional premium charge, your policy will automatically provide the coverage as of the day the revision is effective in your state. O. BODILY INJURY REDEFINED Under Section V — Definitions, Definition 3. is replaced by the following: 3. "Bodily Injury" means physical injury, sickness or disease sustained by a person. This includes mental anguish, mental injury, shock, fright or death that results from such physical injury, sickness or disease. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 7 of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 1 12/19/2018 9:03:08 AM (EST) J Page 8 of 9 P. EXTENDED PROPERTY DAMAGE Exclusion a. of COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY is replaced by the following: a. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property. Q. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US —WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU Under Section IV — Commercial General Liability Conditions, the following is added to Condition 8. Transfer Of Rights Of Recovery Against Others To Us: We waive any right of recovery we may have against a person or organization because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products -completed operations hazard" provided: 1. You and that person or organization have agreed in writing in a contract or agreement that you waive such rights against that person or organization; and 2. The injury or damage occurs subsequent to the execution of the written contract or written agreement. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 8 45997426 1 19-20 Master Certificate I Marilyn Rogers 1 12/19/2018 9:03:08 AM (EST) I Page 9 of 9