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City of Anacortes and Gray&Osborne, Inc. <br /> Contract 11-027-WTR-001 <br /> ❑. Acceptability of Insurers <br /> Insurance is to be placed with insurers with a current A.M. Best rating of not less than <br /> A:VII. <br /> E. Verification of Coverage <br /> Contractor shall furnish the City with original certificates and a copy of the amendatory <br /> endorsement, including but not necessarily limited to the additional insured endorsement, <br /> evidencing the insurance requirements of the Contractor before commencement of the <br /> work. <br /> 10. Registered or Licensed Contractor. The City is prohibited by RCW 39.06.010 from <br /> executing an Agreement with a Contractor who is not registered or licensed as required by the <br /> laws of the state. In addition, the City will require persons doing business with the City to possess <br /> a business license. <br /> 11. Inspection. The Project Manager shall have power to reject instruments of services which <br /> fail to comply with the requirements of this Agreement, but in case of dispute the Contractor may <br /> appeal to the City's Public Works Director, whose decision shall be final. The Contractor shall <br /> comply with any and all orders and instructions given by the representative of the particular <br /> Department administering the Agreement in accordance with the terms of the Agreement. <br /> Nothing herein contained shall be taken to relieve the Contractor of his/her obligations or <br /> responsibilities under the Agreement. However, the Contractor shall be responsible for its own <br /> methods and conduct during the period of performance. <br /> 12. Warranty. The Contractor warrants that Professional Services provided under this <br /> Agreement will be performed in a workmanlike manner consistent with industry standards <br /> reasonably applicable to the performance of such services. The City's remedy shall be the re- <br /> performance of the Service or an equitable adjustment in the monies paid for the Professional <br /> Services, at the City's discretion. <br /> 13. Discrimination Prohibited. Contractor shall not discriminate against any employee or <br /> applicant for employment because of race, color, religion, age, sex, national origin or physical <br /> handicap. <br /> 14. Contractor is an Independent Contractor. The parties intend that an independent <br /> Contractor relationship will be created by this Agreement. No agent, employee or representative <br /> of the Contractor shall be deemed to be an agent, employee or representative of the City for any <br /> purpose. Contractor shall be solely responsible for all acts of its agents, employees, <br /> representatives and subcontractors during the performance of this Agreement. <br /> 15.The City's Right to Terminate Agreement. <br /> A. Termination for Default <br /> If the Contractor defaults by failing to perform any of the obligations of the Agreement or <br /> becomes insolvent or is declared bankrupt or commits any act of bankruptcy or insolvency or <br /> makes an assignment for the benefit of creditors,the City may, by depositing written notice to <br /> the Contractor in the U.S. mail, postage prepaid, terminate the Agreement, and at the City's <br /> option, obtain performance of the work elsewhere. If the Agreement is terminated for default, <br /> the Contractor shall not be entitled to receive any further payments under the Agreement until <br /> all work called for has been fully performed. Any extra cost or damage to the City resulting <br /> from such default(s) shall be deducted from any money due or coming due to the Contractor. <br /> The Contractor shall bear any extra expenses incurred by the City in completing the work, <br /> including all increased costs for completing the work, and all damage sustained, or which <br /> may be sustained by the City by reason of such default. If a notice of termination for default <br /> has been issued and it is later determined for any reason that the Contractor was not in <br /> default, the rights and obligations of the parties shall be the same as if the notice of <br /> Page-4-of 7 <br />