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5032
Contract Number: Vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vault Date: Comments: 5032 SCOTT ALEXANDER'S GOLF SHOP, INC. Golf Management Agreement Parks LEG 12-1 5/2/2011 12/31/2012 7/1/2012 GOLF MANAGEMENT AGREEMENT THIS AGREEMENT made and entered into on the date fully executed by and between the CITY OF BREMERTON, a municipal corporation of the State of Washington, (hereinafter referred to as "City"), and SCOTT ALEXANDER'S GOLF SHOP, INC., a Washington Corporation, (hereinafter referred to as "Contractor"), to provide professional golf management and services pursuant to this Agreement, at the City of Bremerton Gold Mountain Golf Club WHEREAS, the City is the owner of Gold Mountain Golf Club, which ownership includes the land upon which said golf complex is located, the buildings and other improvements which are a part thereof, and WHEREAS, the Gold Mountain Golf Club consists of one 18 -hole golf course known as "Cascade Course", one 18 -hole golf course known as the "Olympic Course", a driving range located adjacent to the Cascade Course ("Driving Range"), and the clubhouse containing a Pro Shop, restaurant, the Cascade room and the Olympic room, ("Clubhouse"), and other related facilities and structures, collectively also referred to herein as ("Golf Club") WHEREAS, the City desires to enter into a new Golf Management Agreement with Contractor for management of the Cascade and Olympic golf courses, Clubhouse, driving range and Pro Shop, and for providing professional golf services and lessons to the facility, said new agreement superseding the terms of all prior agreements, and WHEREAS, the parties hereto have also simultaneously executed a lease whereby Contractor leases the Clubhouse for operation of a Pro Shop, restaurant which includes cart food and beverage services for the golf courses and golf cart service, and further leases the Driving Range as well as a cart pad to operate Contractors private golf cart rental business ("Lease"), and WHEREAS, it is the intent of this Agreement to have the Contractor provide management services to the Gold Mountain Golf Club in accordance with the terms and conditions of this Agreement NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows 1. PURPOSE AND ADMINISTRATION. (a) The purpose of this Agreement is to establish a management services agreement whereby contractor will provide certain management and related services at City -owned golf facilities This Agreement is not a lease, nor does it create a leasehold interest other than similar property interest in Contractor to the City's facilities (b) Contractor will be responsible for performing all work and/or services described herein The Contractor's performance will be monitored and reviewed by the City of Bremerton Director of Parks and Recreation, or his or her designee, (hereinafter "Director") Contractor Golf Management Agreement Page 1 of 17 shall report directly to the Director and work closely with the Greens Superintendent Reports and data required to be provided by the Contractor shall be delivered to the Director Questions of the Contractor regarding interpretation of the terms, provisions and requirements of this Agreement shall be addressed to the Director for response 2. PREMISES. The facilities of the Golf Club to be managed by the Contractor pursuant to this agreement include the Cascade and Olympic Golf Courses, and related facilities, hereinafter ("Premises") 3. TERM. The term of this Agreement shall be two (2) years commencing on January 1, 2011 (the "Commencement Date") and shall terminate on December 31, 2012, unless otherwise earlier terminated in accordance with Section 14 4. SCOPE OF SERVICES. (a) General Services. The Contractor's responsibilities include promoting and managing the use of the Golf Courses, the collection of fees, staffing the courses, including starter services and marshals, and operation and management of the Clubhouse and areas of Contractor's responsibility at the driving range in accordance with the Lease between the City and Contractor, except as otherwise agreed upon between the parties in writing (b) Specific Services. In providing the general services described above, Contractor shall provide not less than the following specific services 1. Olympic and Cascade courses. 1 Contractor shall provide an adequate number of starters, agreed upon by both parties, deemed necessary for the courses to facilitate a good golf operation Contractor shall be responsible for all starting of golf play and for control of the first tee at all times Contractor must provide an adequate number of course marshals to ensure reasonable pace of play and appropriate course conduct ii All counter staff at the courses shall be experienced, trained, and knowledgeable of golf operations and course rules iii Contractor shall provide an adequate number, as agreed upon by both parties, of golf clubs, bags, and pull -carts for rent to users at the courses IV Contractor shall operate and maintain a service for the handling, sales, and leasing of golf equipment and for leasing of carts for operation of the Golf Club operations V In cooperation with the Director and Golf Complex Board of Directors, established pursuant to Chapter 2 34 of the Bremerton Municipal Code (the "Golf Complex Board"), Contractor shall schedule all golf tournaments and shall initiate and promote golf activities at the Golf Club vi The Contractor and Greens Superintendent shall mutually agree upon the open and start of play daily with the Director resolving any conflicts 2. Driving Range and Pro Shop. The Contractor agrees to maintain and operate the Driving Range and Pro Shop in conjunction with the services provided in this agreement. The Driving Range and Pro shop shall be maintained and operated in accordance with the Lease between the City and Contractor for the facilities Golf Management Agreement Page 2 of 17 3. Lessons. I The Contractor may provide competent golf instruction to all groups and levels of public players, including juniors Qualified P G A members or registered assistants must be available to conduct lessons All revenues received and costs incurred by Contractor for lessons shall be revenue and costs of the Contractor ii All lesson gross revenue shall be paid directly to the Contractor or subcontractor and shall not be included in the City's revenue receipts 4. Gift Certificates. Contractor will sell gift certificates for merchandise, restaurant, green fees, and lessons Sale of these certificates will be in accordance with internal controls as approved by the City Contractor shall maintain a log showing all unredeemed outstanding certificates 5. Advertising. I The Contractor shall annually provide to the Director for approval an advertising and promotion plan for the Golf Club, which approval shall not be unreasonably withheld ii Contractor shall obtain City approval for all advertisement for commercial vendors unrelated to concession operation on score cards, benches, entryways, etc Contractor agrees to honor contracts with existing advertising vendors until said contracts expire 6. Attend Meetings. Contractor agrees to be available to attend regular and special meetings of the Golf Complex Board, Parks and Recreation Commission and City Council, and shall be prepared to discuss issues and ideas of interest to the Contractor and City (c) Pricing of Golf Services. 1. Green fees are established by City Council following a review and recommendation of the Golf Complex Board The City reserves the right to establish fees for residents, residential preferential programs, and events sponsored by local businesses and organizations, as well as non-resident fees Fee adjustments must be approved by the City Council except that the Director may establish discount rates for promotional purposes Contractor, as an ex -officio member of the Golf Complex Board, shall have input on pricing of golf services 2. All tournament fees will be set by the Contractor subject to review and final approval of the Director 5. OTHER DUTIES AND RESPONSIBILITIES. (a) Performance of Duties. The Contractor shall devote their attention and energies to the performance of duties as golf Contractor for the City during the term of this Agreement They shall conduct themselves at all times and in all matters in accordance with the standards accepted for golf Contractor as established by the Professional Golfers Association (hereinafter "PGA") The Contractor shall operate the facilities and programs under their direction and control so that they will meet or exceed the standard in the industry for public golf courses in the Puget Sound region Golf Management Agreement Page 3 of 17 (b) Personnel. The Contractor shall provide competent personnel necessary for such operations and shall train and supervise them in their work and shall pay them for their services at the Contractor's sole cost and expense Contractor shall supervise, direct and train staff to perform duties and meet requirements for sales, rentals and services which are, in the opinion of the City and Contractor, necessary Contractor shall provide an on-going staff training program with emphasis on customer training There will be a minimum of two PGA professionals on staff including the Principals of Contractor At least one of the PGA professionals must be on site daily during peak business hours of the Golf Club (c) Credit Rating. Contractor shall maintain a good credit rating in all commercial transactions so as not to discredit the reputation or name of the City of Bremerton (d) Tournament Play. The Contractor shall have the right and are expected to represent the City of Bremerton in various golf tournaments They shall submit their tournament schedule for information to the Director In the event they qualify, they shall have the right to play in the U S Open, Masters, the PGA National Championship, and the Club Contractor's Championship, or any tour event held locally (e) Security. The City has installed a monitored burglar alarm system at the Clubhouse and Pro Shop, and the City will pay the monthly service charge for the system Contractor is responsible for setting the alarm, insuring that it is properly operating and notifying the City if it is in need of repair (f) Inspections. The Contractor will make a daily physical inspection of the complex and report any unusual or unsafe conditions observed during said inspection to the Director immediately Such reports shall be followed up in writing (g) Quarterly Review. Contractor and City shall meet on a quarterly schedule, or as otherwise as mutually agreed, to evaluate operations at the Golf Club and the performance of the parties pursuant to this agreement and to make mutually agreeable changes 6. OPERATING POLICIES AND PROCEDURES. The Contractor will (a) Operate the Golf Club pursuant to the rules and regulations established by the City Council and the Director (b) Expel unruly persons or those under the influence of intoxicants from the Premises under Contractor's control (c) Not foster nor permit any illegal activity on the Premises under Contractor's control (d) Answer and handle all complaints and shall supervise a public relations program In dealing with the public, Contractor will not speak toward City policies or decisions in a derogatory manner. Contractor shall explain and support city policies to staff and the golfing public Golf Management Agreement Page 4 of 17 (e) Not use the Premises for ancillary, revenue-producing activities, or social activities unless expressly authorized by the City The parties acknowledge that Contractor conducts certain private business operations pursuant to the Lease executed with the City for operation of a Pro Shop, driving range and Contractor's private cart rental business and further that Contractor subcontracts lessons at the Golf Club (f) Regulate the play and conduct of all persons on the golf course, including keeping off trespassers and preventing injury to the golf course by players and others (g) Not allow any person to be afforded free use of the golf course unless approved by the Director (h) Supervise all golf activities in connection with outside parties and shall provide members of the golfing public with adequate services, as may be required (i) Provide service to meet public demand and shall keep the Clubhouse open each day that the golf courses are open for play, and at other reasonable hours as prescribed by the City, except Thanksgiving and Christmas, at Contractors option, days the Greens Superintendent closes the course due to inclement weather and except as set forth in Section 7(D) and (E) 7. COMPENSATION. (a) Contractor shall be compensated for services as follows 1. Course and Facility Management Fee. 1 Fixed Fee. Contractor shall be paid the annual sum of THREE HUNDRED SIXTY THOUSAND AND NO/100 DOLLARS ($360,000 00) This fixed fee compensation shall be paid in weekly installments of $6,923 07 or as otherwise agreed ii Percentage (Greens) Fee. In addition, throughout the term of this contract, Contractor shall be paid ten percent (10%) of revenues received from greens fees, net of sales tax, in excess of $2,000,000 00 but in no event shall this percentage fee exceed the fixed fee in any given year set forth in this section For purposes of this subsection, greens fees include daily private cart fees and all other course activities not otherwise provided for in this section, Section 7, for which revenue is received for use of the course, whether golf related or not This percentage fee shall be paid after the end of each year 2. Final reconciliation. Final reconciliation and payment for each year will be made by January 31s' of the following year (b) Billing and Payment Procedures. The City shall pay the amounts due to Contractor as set forth in Section 7(a) Appropriate reconciliation payments for the costs and expenses incurred by the City (i a credit card fees) in the current month for which the Contractor is obligated to pay under the terms of the agreement, shall be included in the reconciliation adjustments and will be deducted from the City's payment in the following month (c) Withholding of Payments to Contractor In the event the Contractor is 60 days or later in payment of lease payments associated with the Lease, City may withhold and apply all Golf Management Agreement Page 5 of 17 momes due to Contractor from City under this Agreement to offset any such amounts due to City from Contractor under said Lease (d) Golf Course Closure — For Conditions and Repair. The golf course facilities shall remain open for play unless they are closed as a result of causes beyond the control, fault, or negligence of the parties Such causes may include, without limitation, acts of God or public enemy, acts of the federal, state, or local governments, fires, floods, epidemics, volcanic eruptions, quarantine restrictions, strikes, freight embargoes, court orders, and unusually severe weather or other condition that causes all or a portion of the Golf Club facilities to be closed for extended periods of time Should either the City or the Contractor fail to perform because of a cause described in this subsection, the City and the Contractor shall make a mutually acceptable revision in the SCOPE OF SERVICES and COMPENSATION provided for in this Agreement, including termination of the Agreement if the Golf Club is deemed unusable by the City as a result of major damage or destruction and the City elects not to rebuild the same In the event that City determines that it is necessary to close all or a portion of the golf Club facilities due to regular maintenance, repair, capital improvements, inclement weather, or similar condition which results in a situation where the golf course is unsatisfactory for play, or if damage to the course and facilities is likely if it remained open, the City shall coordinate such closing with the Contractor prior to actual closing Contractor shall comply with the Director's decision to close all or part of the course and facilities at no cost to the City In the event of closure of all or a portion of the Golf Club facilities as set forth in this subsection, Contractor shall not be entitled to any compensation pursuant to this section, Section 7, whether fixed fee or percentage fee, however, when feasible, the City and Contractor shall revise the SCOPE OF SERVICES and COMPENSATION as noted above for partial closure of the Golf Club, unless this agreement is terminated pursuant to Section 14(f) The City shall incur no liability to Contractor for lost revenue or other additional compensation as a result of any closure of all or a portion of the golf Club facilities as set forth in this subsection (e) Golf Course Closure — For Events. In the event circumstances require the closure of the course or portions thereof for events that may result in the loss of greens fees, the Director may approve, in advance of the closure and in writing, an amount representing potential greens fees lost as a consequence of the course closure This amount shall be used to determine what amount, if any, shall be paid to the Contractor pursuant to this section Any amount pursuant to this section will be included in the Final reconciliation and payment as provided in this section 8. CITY RESPONSIBILITIES. (a) Golf Course grounds 1. The City shall maintain and repair all turf and landscaped areas adjacent to the tees, greens, fairways, driving range, parking lot and the Golf Course buildings 2. The City shall maintain and repair all building exteriors, parking lots, pathways and all of their fixed components, including structural maintenance of buildings, Golf Management Agreement Page 6 of 17 heating and cooling units, doors and windows, locks associated with City's area of responsibility, and lighting systems 3. The services provided in (1) and (2) above shall be in the manner and to the extent previously provided and within defined annual budgets (b) Utilities. All electric power, water, sewer, gas/propane, street utility, garbage and telephone service related to this agreement shall be paid by the City If upon review the City determines that action is needed to address excessive consumption, Contractor will promptly respond and take appropriate action to remedy the excessive consumption Each party shall pay internet and web page costs and expenses related to their duties and responsibilities under this Agreement, unless otherwise agreed 9. CAPITAL IMPROVEMENTS AND FIXTURES. Contractor shall not make any alterations, additions or improvements in the Gold Mountain Golf Club, including the Clubhouse, without first obtaining the consent of City in writing, which consent can be withheld at City's sole discretion All alterations, additions and improvements, shall be at the sole cost and expense of Contractor, and shall remain in and be surrendered with the Clubhouse as a part thereof at the termination of this Agreement If Contractor performs work with the consent of City, as provided above, Contractor agrees to comply with all laws, ordinances, rules and regulations of the City and any other authorized public authority Contractor further agrees that workmanship will be of a reasonable commercial quality, in color schemes in accordance with current building, standards, and free of mechanics liens Contractor further agrees to save City free and harmless from damage, loss or expense arising out of such work 10. COLLECTION OF FEES, FINANCIAL REPORTING, AUDITING AND TAXES. Pursuant to the Golf Club Revenue Bond resolutions, the City irrevocably pledged gross revenues from the Golf Club as security for bond repayment Therefore, all gross revenues from any source shall first be deposited in the City's bank account and disbursed pursuant to this Agreement (a) Point of Sale System. City and Contractor will enter into an agreement for the acquisition, installation and operation and maintenance of a point of sale system and the parties shall share in the cost of the same based on a formula reflecting each parties use of the system (b) Receipting. Contractor and/or subcontractor shall collect for, and on behalf of, the City all gross revenue, including but not limited to golf course greens fees, driving range fees collected under the Lease, golf club and cart rentals, golf course tournament fees, non -sufficient fund check return fees, and all other fees at the Golf Club in strict accordance with the schedule of fees established by the City, unless other instructions are given in writing to the Contractor Netting of transactions is prohibited All revenue collected from transactions under this agreement, with the exception of lessons, must be processed through the Point of Sale System and deposited as provided in subsection 10(c) Contractor may process lesson revenue through the Point of Sale System in which case the revenue must be receipted and deposited as provided in subsection 10(c) and thereafter reconciled and paid to Contractor as appropriate All course gross revenue must be recorded, collected and deposited in a manner which will dispense a dated receipt to be given to each customer Golf Management Agreement Page 7 of 17 (c) Deposits. All deposits must be prepared in a timely manner defined as''/2 hour ahead of scheduled pick-up and composition of deposit shall remain intact and a clear audit trail maintained The City will provide and pay for courier service Any delays causing additional "premise charges" will be paid by Contractor All deposits will be made into a single account established for the Golf Club Settlements and appropriate disbursements will be made from this account Contractor shall be responsible for any loss or theft of City funds while the same are in its possession or control Contractor shall provide City with a fidelity bond and a performance bond as required in this Agreement Contractor and any subcontractor shall comply with accounting procedures as may be required by the City to comply with state laws, regulations and audit review requirements (d) Reports. Contractor shall provide to the City daily reports of golf activity and receipts in a format to be provided by the Director and Findnce Officer, and shall structure their accounting system in a method satisfactory and acceptable to the City The reports will be forwarded to the Director and must be received by the 2nd business day following the day of activity, excluding Fridays, Saturdays and Sundays which will be due on Tuesdays The reports must agree with the corresponding deposit for the day In addition, the Contractor shall submit a copy of its previous year's operating statement by March 31s` to demonstrate Contractor's financial ability to maintain operations under this Agreement (e) Audits. All revenue and fees collected at the Golf Club are City revenues and subject to audit by the State Auditor, City Internal Auditor, or City hired Certified Public Accountants Contractor shall permit the City, from time to time as the City deems necessary, through its designated representatives, to inspect and audit in Bremerton, Washington, at any reasonable time, all pertinent books and records of Contractor and any other person or entity that has performed work in connection with or related to Contractor's services under this Agreement to verify the accuracy of accounting records and shall supply the City with, or shall permit the City to make a copy of any books and records and any portion thereof, upon the City's request Contractor shall ensure that such inspection, audit and copying right of the City is a condition of any contract, agreement or other arrangement under which any other person or entity is permitted to perform work in connection with or related to Contractor's services under this Agreement The Contractor shall take immediate corrective action on all prior, current or future internal control weaknesses as directed by the City (f) Taxes. Pursuant to the City's bond resolutions on the Golf Club facilities, the Contractor will remit to the City all gross revenues collected Sales tax from Contractor's activities remitted to the City will be held by the City and will be returned to the Contractor weekly or as otherwise agreed City shall retain and remit sales taxes on revenues from green fees sales As an independent contractor, the Contractor acknowledges that it is responsible for payment of any local, state, including business and occupation tax, or federal taxes or fees with respect to the Contractor's business, including sales tax, for its activities The Contractor shall pay any and all applicable taxes when due (g) Credit Card Costs and Fees. Contractor shall be responsible for all credit card costs and related fees incurred for Contractor's business pursuant to this agreement (ie lessons) Golf Management Agreement Page 8 of 17 and the City shall be responsible for credit card costs and related fees incurred for the City's business pursuant to this agreement (ie greens fees) 11. MAINTENANCE OF RECORDS. The Contractor shall keep and maintain on a current basis all books and records, including the operating accounts, to support its management and operations of the Premises under this Agreement The City or its authorized representative shall have the authority to inspect, audit, and copy, upon reasonable notice and from time to time, any records of the Contractor regarding its billings, payments or work under this Agreement Contractor shall retain these records for inspection, audit, and copying for at least three (3) years from the date of completion or termination of this Agreement, or as otherwise required by the Washington Secretary of State General Records Retention Schedule for all Local Government Agencies in Washington State Contractor shall, at all times, provide the City with all records for the prior three (3) years that relate to the financial matters of the Premises managed by Contractor under this Agreement 12. AUDIT OF PAYMENTS. The City, either directly or through a designated representative, may audit the records of the Contractor at any time during the three (3) year period established by Section 11, MAINTENANCE OF RECORDS If an audit discloses that payments to the Contractor under Section 7, COMPENSATION, were in excess of the amount to which the Contractor was entitled, or that the payments to the City were less than the amount to which the City was entitled, then Contractor shall repay the amount of the excess or deficiency to the City If an audit discloses that payments to the City under Section 7, COMPENSATION, were in excess of the amount to which the City was entitled, or that payments to the Contractor were less than the amount to which the Contractor was entitled, then the City shall repay the amount of the excess or deficiency to the Contractor 13. ASSIGNMENT. Contractor shall not either voluntarily or by operation of law assign, transfer, mortgage, pledge, hypothecate, or encumber this contract or any interest therein and shall not subcontract the obligations under this Agreement, or any part thereof, or allow any person (employees, agents, servants, and invitees of Contractor excepted) to use the Golf Club Facilities, or any portion thereof, without the prior written consent of the City Any such assignment, subcontracting or use without compliance with the terms of this section shall be void and shall constitute a default under the terms of this Contract If Contractor is a corporation, any transfer of this Contract from Contractor by merger, consolidation, or liquidation, or any change in the ownership or power to vote in a majority of the outstanding voting stock of Contractor shall constitute an assignment for purposes of this section Any consent to one assignment, subcontracting, or use by any other person shall not be deemed to be a consent to any subsequent assignment, subcontracting, or use by another person Consent to any such assignment, subcontracting or use shall in no way relieve Contractor of any liability under this Agreement Assignment by Contractor to a financial institution holding a security interest in this Agreement shall not be considered to be a violation of the consent requirements of this Agreement Consent for any subsequent assignments by said financial institution will not be unreasonably withheld, however, any assignee must have experience and be knowledgeable in golf facility management and operations Golf Management Agreement Page 9 of 17 14. TERMINATION. This Contract will terminate upon the happening of any of the following events (a) Upon its normal termination if not renewed (b) Upon termination of the Lease (e) Upon the death of both of Contractor's Principals (d) By mutual written agreement (e) Breach of this Agreement as set forth in Section 15 below (f) Mayor damage or destruction of the golf Club property, structures or equipment that is the subject of this Agreement, when the City decides not to rebuild, and that damage or destruction will prevent Contractor from substantially performing their obligation under this Agreement 15. BREACH. (a) In the event that either party claims that the other is in a substantial breach of any of the provisions of this Contract, notice of the breach shall be submitted to the party alleged to be in breach and the party in breach shall have thirty (30) days from receipt of the notice within which to correct any activity or conduct claimed by the other to have constituted a substantial breach of this Contract The notice shall identify the nature of the breach and the contract provisions violated (b) In the event that the party in breach shall fail to correct the activity claimed to constitute a substantial breach of this Contract within thirty days of receipt of the notice of breach, the party claiming breach may 1. Issue a notice of termination, and/or 2. Seek judicial remedy or specific performance, and/or 3. Pursue any other remedy available at law or equity (e) The Contractor is subject to immediate termination upon written notice by City if 1. Contractor violates any fiduciary duty to the City by misappropriating or not properly accounting for or mishandling City funds as determined by the City or Washington State Auditor, or 2. Contractor vacates or abandons the Golf Club facilities under Contractor's responsibility 3. Termination or expiration of the Lease between the parties (d) Upon receipt of notice of termination by Contractor, which is issued by the City, the City shall have the right to 1. Enter and take possession of the facilities, and/or Golf Management Agreement Page 10 of 17 2. Bring suit for and collect all fees and portions of gross revenue or any other monies required to be paid to the City which shall have accrued to the time of termination of the Contractor's rights (e) Upon written notice of termination by the City, Contractor will have thirty (30) days to vacate the Premises unless the City elects to take immediate possession as set forth in subsection (d) above Termination shall be affected by serving a Notice of Termination by certified mail (return receipt requested) or by personal delivery upon the Contractor setting forth the manner in which the Contractor is in default (f) Neither the City nor the Contractor shall have breached this Contract by reason of the closing of all or a portion of the golf course facilities as set forth in Section 7(d) and (e) (g) Examples of a breach by the Contractor which warrants termination, if not cured, shall include but not be limited to 1. Misappropriation or mishandling of City funds 2. Contractor makes any general assignment or general arrangement for the benefit of creditors or the filing by or against Contractor of a petition to have Contractor adjudicated as bankrupt, or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Contractor, the same is dismissed within sixty (60) days or the appointment of a trustee or a receiver to take possession of substantially all of Contractor's assets located at the Premises or of Contractor's interest in this Agreement, where possession is not restored to Contractor within thirty (30) days or the attachment, execution, or otherjudicial seizure of substantially all of Contractor's assets located at the Premises or of Contractor's interest in this Agreement where such seizure is not discharged within thirty (30) days 3. Contractor assigns all or part of its interest in this Agreement without prior written consent of the City pursuant to Section 13 4. Nonpayment of outstanding current liabilities within ninety (90) days and failure to pay Federal, State, and local taxes and license fees when due 5. Continuing inattention or neglect of duties 6. Suspension from the PGA resulting in a situation where neither principal is a member of the PGA for more than thirty (30) days 7. Conviction of a felony or conviction of a non -felony crime of dishonesty, theft or deceit of either of the Principals 16. PURCHASE OF CONTRACTORS MERCHANDISE. In the event the City takes over management of the Golf Club facilities, after expiration of this Agreement or earlier termination by the City, Contractor reserves the right, if it so elects at its discretion, to require City to purchase the Contractor's Pro shop and driving range merchandise and moveable furnishings at Contractor's cost less depreciation mutually agreed upon If there is no agreement, this amount shall be established by a mutually agreed upon independent appraiser The City shall make payment within 90 days of expiration or termination, less any monies owing to the City under the terms of this Agreement or under the terms of the Lease Should Contractors simply abandon any items set forth above, they shall immediately become the property of the City Golf Management Agreement Page 11 of 17 17. INDEPENDENT CONTRACTOR. (a) The Contractor is engaged as an independent contractor and will be responsible for any federal, state, and local taxes and fees applicable to payments hereunder (b) The Contractor, its subcontractors, and their employees, are not employees of the City and are not eligible for any benefits through the City, including without limitation federal social security, health benefits, workers' compensation, unemployment compensation, and retirement benefits (c) The parties agree and acknowledge that the Contractor is an independent contractor and not the agent or employee of the City of Bremerton, and that no liability shall attach to the City as a result of the acts or omissions of the Contractor, its agents or employees (d) The Contractor shall be responsible for withholding and paying all payroll taxes for any person hired by them to perform the duties they are required to perform under the terms of this agreement They are also responsible for all taxes owed to any governmental agency as a result of the monies paid to them under the terms of this Agreement 18. INDEMNIFICATION, INSURANCE, BOND. (a) Indemnification. 1. Contractor agrees to defend, indemnify and save harmless the City, its appointed and elected officers, employees and volunteers, from and against any and all liability, loss, cost, damage and expenses, including costs and attorney fees in defense thereof because of actions, claims or lawsuits for damages resulting from personal or bodily injury, including death at any time resulting there from, sustained or alleged to have been sustained by any person or persons and on account of damage to property, arising or alleged to have arisen directly or indirectly out of or in consequence of or the performance of this Agreement, whether such injuries to persons or damage to property is due to the willful or negligent acts or omissions of Contractor, their subcontractors or agents This provision shall be inapplicable to the extent the City is judicially found solely negligent for such damage or injury 2. Should a court of competent j unsdiction determine that 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 Contractor and the City, its officers, officials, employees and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence (b) Insurance Requirements. 1. The Contractor shall procure and maintain for the duration of this 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 Contractor, its agents, representatives, employees or subcontractors 2. The Contractor shall provide a Certificate of Insurance evidencing a Automobile Liability Insurance with no less than $1,000,000 combined single limit per accident for bodily injury and property damage, and Golf Management Agreement Page 12 of 17 b Commercial General Liability Insurance written on an occurrence bases with limits no less than $1,000,000 combined single limit per occurrence and $2,000,000 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, liquor liability, and employer's liability 3. Any payment of deductible or self insured retention shall be the sole responsibility of the Contractor 4. The City, including its officials, employees, and volunteers, shall be named as an additional insured on the insurance policy, with respect to work performed by, or on behalf of, the Contractor and a copy of the endorsement naming the City as additional insured, approved by the City's Risk Manager, shall be attached to the Certificate of Insurance 5. The Contractor's 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 respect to the limits of the insurer's liability 6. The Contractor's insurance shall be the primary and non-contributing insurance with respect to the City's insurance and the City shall be given thirty (30) days prior written notice of any cancellation, suspension or material change in coverage 7. Acceptability of Insurers. Insurance is to be placed with an insurer with a Bests' rating of no less than A XIII, or with an insurer acceptable to the City 8. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates for each subcontractor All coverage for subcontractors shall be subject to all of the requirements stated herein 9 Workers Compensation. Tenant shall provide evidence of worker's compensation insurance in the amount required by statute, and employer's contingent liability (stop gap) insurance in the amount of at least $1,000,000 00 per accident and at least $1,000,00 00 for disease, each employee (c) Bond. The Contractor shall continuously maintain at its expense an employee dishonesty bond covering collection of fees on the Premises for the benefit of the City The bond shall be in an amount not less than SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($75,000 00) The Contractor must additionally provide broad form money and securities coverage both inside and outside the Premises in an amount not less than FIVE THOUSAND AND NO/ 100 DOLLARS ($5,000 00) (d) Proof of Insurance. Proof of the above requirements must be provided to the City upon execution of this Agreement The policies required herein shall provide not less than thirty (30) days prior written notice to the City of any cancellation, expiration, modification, or reduction in coverage or liability limits 19. SUBCONTRACTING. The Contractor shall not subcontract its work under this Agreement, in whole or in part, without the written approval of the City The City reserves the right to review and approve any subcontracts prior to execution to ensure compliance with the provisions of this Agreement The Contractor shall require any approved subcontractor to agree, as to the portion subcontracted, to comply with all terms and conditions as specified in this Agreement. Notwithstanding City approval of a subcontractor, the Contractor shall remain obligated for full performance hereunder, and the City shall incur no obligation other than its Golf Management Agreement Page 13 of 17 obligations to the Contractor hereunder Any subcontracts approved by the City shall be subject to and shall not extend any rights granted beyond those set forth in this Agreement to Contractor. Contractor agrees that if subcontractors are employed in the performance of this Agreement, Contractor and its subcontractors are subject to the requirements of the State of Washington, Workers' Compensation Laws 20. CONDITION OF PREMISES. The Contractor has inspected and examined the Premises and all facilities and fixtures thereon and accepts the same in its present condition The Contractor shall not make any alterations, changes, or additions to the Clubhouse or to any fixtures or equipment owned by the City without the written consent of the Director The Contractor shall not commit, permit, or allow any nuisance, waste, or injury in, upon, or to the golf course, or to permit the use of the golf course for any illegal or immoral purpose 21. NOTICE. Any notice provided for under this Agreement shall be sufficient if in writing and delivered personally to the following addressee or deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed as follows, or to such other address as the receiving party hereafter shall specify in writing City Director of Parks and Recreation City of Bremerton 345 6th Street, Suite 600 Bremerton, Washington 98337 Contractor Scott Alexander's Golf Shop, Inc P O Box 197 Bremerton, WA 98312 22. PAYMENTS TO VENDORS AND SUBCONTRACTORS. The Contractor shall pay timely all suppliers, lessors, and contractors providing services, materials or equipment for carrying out its obligations under this Agreement The Contractor shall not take or fail to take any action in a manner that causes the City or any materials that the Contractor provides hereunder to be subject to any claim or lien of any person without the City's prior written consent 23. BUSINESS LICENSE. Contractor shall obtain a City of Bremerton business license as required by Chapter 5 02 of the Bremerton City Code prior to beginning work under this Agreement 24. CONFIDENTIALITY OF RECORDS. The City will, to the extent allowed by law, keep all of Contractor's and subcontractor's financial cost information confidential, unless required to disclose the information as a result of the Washington Public Records Disclosure law, Ch 42 56 RCW or by court order Golf Management Agreement Page 14 of 17 25. OTHER. (a) Costs and Attorney Fees: If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Agreement, a legal action is instituted, the losing party agrees to pay all reasonable costs and attorney fees in connection therewith It is agreed that the venue of any legal action brought under the terms of this Agreement shall be in Kitsap County (b) Construction. This Agreement shall be construed in accordance with the laws of the State of Washington The provisions of this Agreement have been negotiated by the parties, and when interpreting the provisions of this Agreement, there shall be no presumption of draftsmanship for or against either party (c) Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision (d) Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions of this Agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such right or power at any time be taken to be a waiver of any other breach The City and the Contractor shall not be deemed to have waived any breach of this Agreement by the other party except by an express waiver in writing An express written waiver as to one breach shall not be deemed a waiver of any other breach not expressly identified, even though the other breach is of the same nature as that waived (e) Amendment. The City and the Contractor may amend this Agreement at any time only by written amendment executed by the City and the Contractor The City and the Contractor agree that this Agreement shall be amended at any time if, in the opinion of bond counsel to the City, such amendment is necessary to preserve the tax exempt status of interest on obligations of the City issued to finance the Golf Club (f) Entire Agreement. This Agreement contains the entire agreement between the parties with regards to the subject matter set forth herein There are no other representations with regards to the subject matter, either orally or in writing (g) Previous Agreements Superseded. The terms and conditions of this Agreement supersede the terms, obligations and conditions of any existing or prior agreement between the parties regarding the subject matter of this Agreement This Agreement replaces in its entirety any prior agreements, including the prior Golf Management Agreement, and any amendments and extensions thereto (h) Nondiscrimination. Contractor shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status, physical, mental or sensory disability except in an employment action based on a bona fide occupational qualification Golf Management Agreement Page 15 of 17 (i) Liens. The Contractor agrees that it shall pay, or cause to be paid, all costs and expenses for work done and materials delivered to the Premises and shall keep the Premises free and clear of all liens for work performed thereon 0) Remedies. Rights under this Agreement are cumulative, the failure to exercise on any occasion any right shall not operate to forfeit such right on another occasion The use of one remedy shall not be taken to exclude or waive the right to use another (k) Washington law and Forum. This Agreement shall be construed according to the law of the State of Washington Any litigation between the City and the Contractor arising under this Agreement or out of work performed under this Agreement shall occur, if in the state courts, in the Kitsap County Court having jurisdiction thereof, and if in the federal courts, in the United States District Court for the Western District of Washington CITY OF BREMERTON j� /- PATTY(!94T, Mayor DATE S-5-11 ATTEST �Iary' �&'z CAROL f T6 Elk, Crty t Jerk AS TO FORM ER A LUBOVICH, City A SCOTT ALEXANDER'S GOLF SHOP, INC. k�t C&Y- Cj'-- By SCOTT ALEXANDER Its DATE 5/Z-/ t 1 " llC By DARYL MAPENY Its DATE 2 R \Legal\Legal\Files\Current Active Files\Gold Mountam\Golf Management Agreement - FINAL doc Golf Management Agreement Page 16 of 17 STATE OF WASHINGTON) ) ss COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Patty Lent is the person who appeared before me, and said person acknowledged that he/she 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 City for the uses and purposes mentioned in the instrument NOTARY PUBLIC STATE OF WASHINGTON CAROL L ETGEN COMMISSION EXPIRES 12/18/2012 STATE OF WASHINGTON) ) ss COUNTY OF KITSAP ) NOTARY PUBLIC in anor th State of Washington, residing at My commission expires( / "A I certify that I know or have satisfactory evidence that Scott Alexander is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged it as the of Scott Alexander's Golf Shop, Inc to be the free and voluntary act of such Corporation for the uses and purposes mentioned in the instrument DATED 5-/i 1 -�-©>> NOTARY PUBLIC in and for the S Washington, residing at m L My commission expires 4,/ (/ ► 3 %c STATE OF WASHINGTON ) ) ss COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Daryl Matheny is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged it as the of Scott Alexander's Golf Shop, Inc to be the free and voluptary act of such Corporation for the uses and purposes mentioned in the instrument DATED 5'/7/1 1 / Of NOTARY PUBLIC in and _for tl Washington, residing at 01ifin e My commission expires -0 ktmw )r Golf Managemen, Page 17 of 17 GOLD MOUNTAIN GOLF COURSE EXHIBIT A PRO SHOP AND DRIVING RANGE MOVEABLE FURNISHINGS # ITEM QTY MAKE/MODEL LOCATION/COMMENTS 1 _L4 -Set Rack _ _ _ _ ( _ _ _ _, __ ___ __ Pro Shop 2 BBQ Grill 1 Patio 3 Clothes Racks 1 6 Pro Shop 4 ; Cones (Shotgun Starts) �..5.._.....k� Lobby .C......o._..u..c...._h. - 6 Decorations - Vase & Art Flowers 2 _ .. .. .. .. ., m._.._... .. _ ... .,. Lobby 7 ' Driver Racks 2 Pro Shop 8 Fax Machines 2 Clubhouse Offices 9 File Cabinets 9 = Clubhouse Offices .10 Fire Pit & Chairs _ ry __ _ _ _1 _ _ T _ , Patio µm m 11 ° Framed Prints/Displays ! Lobby Mm 12_ Full Set Racks_ 2 a _ _ mm Pro Shop m 13 ; Hat Racket i 14 ; Janitorial Supplies 1 1 ; Pro Shop 'Clubhouse 15 ; Laminator 1 Pro Shop 16 Nesting Table � �_ g Pro Shop _ 17 Patio Chairs_Patio__ _ 18 Putter Racks 3� =Pro Shop 19 Range Ball Baskets _ 30 _ _ _ Driving Range Building 201 Range Cart _ __ ___. -.A....m M ,.... 1 T1 _ w _ _ ; Driving Range mm; 21 Range Dispenser Driving Range Building 22 Range Picker _ 1 Driving Range 23 Resister Counter & Ball Display 1 Pro Shop 24 Seasonal Decorations _ _ AssortStora e {Pro 26 Tables for Golf Bails 4 Pro Shop 27 Televison (27') 5 Pro Shop, Restaurant, Bar 28 Trophy/Display- Case 1 F Lobby _ 29 i Troph)r/Display - Hutch T _ _w _ _ _ _ 1 Lobby m 30 Washer and Dryer 1 _ ! Driving Range Building _ 1-,5-03 a SCOTAL2 OP ID: DM ACORO° CERTIFICATE OF LIABILITY DATE Y) INSURANCE 01/21/2016 01/21/2016 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 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 Edgren Hecker & Lemmon Ins Inc P.O. Box 986 RECEIVED CONTACT Brian Edgren NAME:PHONE 360-779-48 aC No): 360-697-4598 Ext 44 E-MAIL ADDRESS: POulsbo, WA 98370 Brian Edgren JAN 2 5 20115 INSURERS AFFORDING COVERAGE NAIC# INSURER A: Ohio Security Insurance Co INSURED Scott Alexanders Golf Shop Inc INSURER B: Ohio Casualty Insurance Co. 24074 Pacific Northwest Cart Service City of Bremerton 3410 Circle Way NW Risk Management Bremerton, WA 98312 INSURER C: INSURER D: INSURER E: _ DAMAGE T RENTED 1 OOO,OO PREMISES Ea occurrence $ INSURER F: COVERAGES CERTIFICATE NUMBER: 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" LTR TYPE OF INSURANCE ADDL UB POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DD/YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,00 CLAIMS -MADE PC] OCCUR X BKS55409820 02/01/2016 02/01/2017 _ DAMAGE T RENTED 1 OOO,OO PREMISES Ea occurrence $ MED EXP (Any one person) $ 15,00 PERSONAL &ADV INJURY $ 1,000,00 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,00 X POLICY ❑ PROJECT D LOC PRODUCTS - COMP/OP AGG $ 2,000,00 $ OTHER: AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 Ea accident BODILY INJURY (Per person) $ A X ANY AUTO BAS55409820 02/01/2016 02/01/2017 ALL OWNED SCHEDULED AUTOSAUTOS BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ Per accident NON -OWNED HIREDAUTOS AUTOS X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 1,000,00 AGGREGATE $ 1,000,00 B EXCESS LIAB CLAIMS -MADE US055409820 02/01/2016 02/01/2017 DED I X I RETENTION$ 10,000 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y / N BKS65409820 02/01/2016 02/01/2017 PER R STATUTE ER E.L. EACH ACCIDENT $ 1,000,00 OFFICER/MEMBER EXCLUDED? (Mandatory in NH) N / A STOP GAP/EMPLOYERS LIAB E.L. DISEASE - EA EMPLOYEE $ 1,000,00 If es; describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,00 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space Is required) Certificate Holder named as Additional Insured in regards to: Contract 5023 - Lease Pro Shop & Driving Range Contract 5032 - Golf Management Agreement CERTIFICATE HOLDER CANCELLATION CITYBR2 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City Of Bremerton THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Financial Services 345 6th Street, Ste 600 AUTHORIZED REPRESENTATIVE Bremerton, WA 98337 ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD SCOTAL2 OP ID: DM ACORO" CERTIFICATE OF LIABILITY INSURANCE `-� DATE 01/30/2017 Y) 01 /30/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR -ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must 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 Edgren Hecker & Lemmon Ins Inc P.O. Box 986 CONTACT Deana Mcln re PHONE 360-779448 FAX No :36O-697-4598 A/c No Ext a nRess: deana@ehlinsurance.com Poulsbo, WA 98370 Brian Edgren 02/01/2017 02/01/2018 INSURERS AFFORDING COVERAGE NAIC # INSURER A: Ohio Security Insurance Co 24082 MED EXP (Any one person) $ 15,00 INSURED Scott Alexanders Golf Shop Inc INSURER B: Ohio Casualty Insurance Co. 24074 3410 Circle Way NW Bremerton, WA 98312 INSURER C PRODUCTS - COMP/OP AGG $ 2,000,00 $ INSURER D: INSURER E: LIABILITY ANY AUTO, ALL OWNED SCHEDULED AUTOS AUTOS NON -OWNED HIRED AUTOS AUTOS INSURER F: COVERAGES CERTIFICATE NUMBER: 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 LTR TYPE OF INSURANCE ADDL INSD SUB WVD POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DD/YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE FXI OCCUR X 345 6th Street, Ste 600 BKS55409820 02/01/2017 02/01/2018 EACH OCCURRENCE $ 1,000,00 DAMAGE TO RENTED 1 000,00 $ PREMISES Ea occurrence , MED EXP (Any one person) $ 15,00 PERSONAL & ADV INJURY $ 1,000,00 GENT AGGREGATE LIMIT APPLIES PER: X POLICY F-1JECT LOC OTHER: GENERAL AGGREGATE $ 2,000,00 PRODUCTS - COMP/OP AGG $ 2,000,00 $ A AUTOMOBILE X LIABILITY ANY AUTO, ALL OWNED SCHEDULED AUTOS AUTOS NON -OWNED HIRED AUTOS AUTOS BAS55409820 02/01/2017 02/01/2018 COMBINED SINGLE LIMIT $ 1,000,00 Ea accident BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ Per accident $ B X UMBRELLA LIAB EXCESS LIAB X OCCUR CLAIMS=MADE US056409820 02/01/2017 02/01/2018 EACH OCCURRENCE $ 1,000,00 AGGREGATE $ 1,000,000 DED I X RETENTION $ 10,000 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y/N OFFICER/MEMBER EXCLUDED? F--] (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below N/A BKS55469820 STOP GAP/EMPLOYER LIAB 02/01/2017 - 02/01/2018 PER OTH- STATUTE I ER E.L. EACH ACCIDENT $ 1,000,00 E.L. DISEASE - EA EMPLOYEE $ 11000,00 E.L. DISEASE - POLICY LIMIT $ 2,Of%0,00 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space Is required) Certificate Holder named as Additional Insured in regards to: Contract 5023 - Lease Pro Shop & Driving Range Contract 5032 -.Golf Management Agreement CERTIFICATE HOLDER CANCELLATION CITYBR2 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City of Bremerton Financial Services AUTHORIZED REPRESENTATIVE 345 6th Street, Ste 600 Bremerton, WA 98337 m ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014101) The ACORD name and logo are registered marks of ACORD r SCOTAL2 OP ID: DM CERTIFICATE OF LIABILITY INSURANCE DATE 02(MM/ 02/01 /22018018 Y) 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 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 Edgren Hecker & Lemmon Ins IncPHONE P.O. Box 986 Poulsbo, WA 98370 Brian Edgren RECEIVEDINSURERS CONTANAME: CT Deana McIntyre FAX a/C No Ell:360-779-4448 A/c No): 360-697-4598 Al E-MAIL RE SS: deana@ehlinsurance.com AFFORDING COVERAGE NAIC# INSURER A: Ohio Security Insurance Co 24082 INSURED Scott Alexanders Golf Shop Inc 3410 Circle Way NW MAR 0 5 2018 Bremerton, WA 98312 INSURER B: Ohio Casualty Insurance Co. 24074 INSURER C EACH OCCURRENCE $ 1,000,0 City of Bremerton Risk Management INSURER D: INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: RFVISIr)N NIIMRFR- 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. IIR TR TYPE OF INSURANCE ADDL UB POLICY NUMBER EFF MM/DD//YYYY MMPOLICY ICY EXP LDD//YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE FxI OCCUR X BKS66409820 02/01/2018 02/01/2019DAMAGE EACH OCCURRENCE $ 1,000,0 TO RENTED PREMISES Ea occurrence $ 1,000,00 MED EXP (Any one person) $ 15,00 PERSONAL 8 ADV INJURY $ 1,000,00 GEN'L 'L AGGREGATE LIMIT APPLIES PER: POLICY JECT F7LOC GENERAL AGGREGATE $ 2,000,0 PRODUCTS - COMP/OP AGG $ 2,000,00 $ OTHER: AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea accident $ 1,000,00 A X ANY AUTO BAS55409820 02/01/2018 02/01/2019 BODILY INJURY (Per person) $ ALL OWNED SCHEDULED AUTOS AUTOS BODILY INJURY (Per accident) $ HIRED AUTOS NON -OWNED AUTOS F PROPERTY DAMAGE $ Per accident 1 $ X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 1,000,00 AGGREGATE $ 1,000,00 B EXCESS LIAB CLAIMS -MADE US055409820 02/01/2018 02/01/2019 DED I X I RETENTION $ 10,000 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y/N OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below N / A BKS56409820 EMPLOYERS LIAB / STOP GAP 02/01/2018 02/01/2019 PER OTH- STATUTE ER E.L. EACH ACCIDENT $ 1,000,00 E.L. DISEASE - EA EMPLOYEE $ 1,000,00 E.L. DISEASE - POLICY LIMIT 1 $ 2,000,00 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Certificate Holder named as Additional Insured in regards to: Contract 5023 - Lease Pro Shop & Driving Range Contract 5032 - Golf Management Agreement k::�Crw—) pvreCl ► CERTIFICATE HOLDER CANCFI I ATIAN CITYBR2 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Bremerton ACCORDANCE WITH THE POLICY PROVISIONS. Financial Services AUTHORIZED REPRESENTATIVE 345 6th Street, Ste 400 Bremerton, WA 98337 - zp" m M"_� ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD COMMERCIAL GENERAL LIABILITY CG 88100413 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 INSUREDS - BY CONTRACT, AGREEMENT OR PERMIT 3 PRIMARY AND NON-CONTRIBUTORY- ADDITIONAL INSURED EXTENSION S ADDITIONAL INSUREDS - EXTENDED PROTECTION OF YOUR "LIMITS OF INSURANCE" 6 WHO IS AN INSURED - INCIDENTAL MEDICAL ERRORS/MALPRACTICE AND WHO IS AN INSURED - FELLOW EMPLOYEE EXTENSION - MANAGEMENT EMPLOYEES 6 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 RIGHTS 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. Page 1 of 8 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 1 - Coverage A - Bodily Injury And Property Damage Liability, exclusion g. Aircraft, Auto Or Watercraft does not apply to an aircraft provided: I. It is not owned by any insured; 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 I - 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 1. Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liabil- ity, 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: 1. 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 follow- ing: 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 8810 0413 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 8 b. The last paragraph of subsection 2. Exclusions is replaced by the following: Exclusions c. through n. 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. 2. Paragraph 6. under Section III -Limits Of Insurance is replaced by the following: 6. 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. Anyone 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 sys- tems; 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 1. Under Supplementary Payments -Coverages A and 8, 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. 2. 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 "per- sonal and advertising injury" is committed, subsequent to the signing of such written contract or written agreement; or ® 2013 Liberty Mutual Insurance CG 8810 0413 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 8 b. Premises or facilities rented by you or used by you; or c. 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 ad- vertising 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 expo- sures; or (b) The construction, erection, or removal of elevators; or (c) The ownership, maintenance, or use of any elevators covered by this insurance. However: 1. The insurance afforded to such additional insured only applies to the extent permitted bylaw; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insur- ance 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.e. 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 Condi- tions. ® 2013 Liberty Mutual Insurance CG 8810 0413 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 8 2. 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. c. "Bodily injury", "property damage" or "personal and advertising injury" arising out of the render- ing 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 "occur- rence" 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, engineering 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 is- sued 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 contractor 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 lz 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 amend- ed 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 8810 0413 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 8 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 addi- tional 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. I. 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. 1. 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 Ina written contract or written agreement or the limits of insurance as stated in the Declarations of this policy and defined in Section 111 - 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. J. 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 employ- ment 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 profes- sional health care personnel to others, or if coverage for providing professional health care ser- vices is not otherwise excluded by separate endorsement, this provision (Paragraph (d)) does not apply. 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 "employ- ees" of yours. However, none of these "employees" are insureds for "bodily injury" or "personal and m 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 8 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 intoxica- tion 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: 3. 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 6 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 8. Repre- sentations: 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. 0. 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, sick- ness or disease. 0 2013 Liberty Mutual Insurance CG 8810 0413 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 7 of 8 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. Trans- fer 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 agree- ment. ® 2013 Liberty Mutual Insurance CG 8810 0413 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 8 50,3 /5D 3,-)- SCOTAL2 OP ID: DM 1411cORO" �—� CERTIFICATE OF LIABILITY INSURANCE ATE 02/01/2019 Y) 02/01 /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 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 Edgren Hecker & Lemmon Ins Inc P.O. Box 986 RichPoulHe, er 98370 Rich Hecker CONTNAME: Deana McIntyre _ PHONE FAX A/c No Ext): 360-779-4448 ac No): 360-697-4598 ADDRESS: deana@ehI!nsurance.com BKS55409820 02/01/20191 INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: Ohio Security Insurance Co 24082 PREMISES Ea occurrence $ 1,000,00 INSURED Scott Alexanders Golf Shop Inc 3410 Circle Way NW Bremerton, WA 98312 INSURER B : American Fire & Casualty Co. 24066 INSURER C : Ohio Casualty Insurance Co. 24074 INSURER D: GENERAL AGGREGATE $ 2,000,00 INSURER E: $ INSURER F AUTOMOBILE X COVERAGES CERTIFICATE NUMBER: 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. 1�TR TYPE OF INSURANCE ADSL UBR POLICY NUMBER MM/DDY/YYYYEFF MMI DfYYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE XOCCUR X BKS55409820 02/01/20191 02/01/2020 EACH OCCURRENCE $ 1,000,00 PREMISES Ea occurrence $ 1,000,00 MED EXP (Any one person) $ 15,00 _ PERSONAL & ADV INJURY $ 1,000,00 GEN'L AGGREGATE LIMIT APPLIES PER: X POLICY 1:1 ECT C LOC OTHER: GENERAL AGGREGATE $ 2,000,00 PRODUCTS - COMP/OP AGG $ 2,000,00 $ B AUTOMOBILE X LIABILITY ANY AUTO ALL OWNED SCHEDULED AUTOS AUTOS NON -OWNED HIRED AUTOS AUTOS BAA55409820 02/01/2019 02/01/2020 COMBINED SINGLE LIMIT $ 1,000,00 Ea accident BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ Per accident C X UMBRELLA LIAB EXCESS LIAB X OCCUR CLAIMS -MADE US055409820 02/01/2019 02/01/2020 EACH OCCURRENCE $ 1,000,00 AGGREGATE $ 1,000,00 DED X RETENTION $ 10,000 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YINSTATUTE ANY PROPRIETOR/PARTNER/EXECUTIVE .OFFICER/MEMBER FXCLIJDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below N / A BKS55409820 JEMPLOYER LIABIWA STOP GAP 02/01/2018 ! j 02/01/2019 PER OTH- ER E.L. EACH ACCIDENT $ 1,000,00 E.L. DISEASE - EA EMPLOYEE $ 1,000,00 E.L. DISEASE -POLICY LIMIT $ 2,000,00 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space is required) Certificate Holder named as Additional Insured in regards to: Contract 5023 - Lease Pro Shop & Driving Range Contract 5032 - Golf Management Agreement CERTIFICATE HOLDER CANCELLATION CITYBR2 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Bremerton ACCORDANCE WITH THE POLICY PROVISIONS. 345 6th Street, Ste 100 AUTHORIZED REPRESENTATIVE Bremerton, WA 98337 M - ^� ACORD 25 (2014/01) @ 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD