Loading...
HomeMy WebLinkAbout25-001-AFD-001 Interlocal Agreement SKAGIT COUNTY Contract# C20240377 Page 1 of 66 SKAGIT COUNTY INTERLOCAL AGREEMENT FOR THE PROVISION OF EMERGENCY MEDICAL SERVICES This Interlocal Agreement for the provision of Emergency Medical Services throughout Skagit County ("Agreement") is made and entered into by and between Skagit County("County");and "Provider(s)" which includes the City of Anacortes; the City of Burlington,the City of Mount Vernon, the City of Sedro- Woolley; and Aero Skagit, a not-for-profit Corporation, hereinafter referred to collectively as the"Parties". RECITALS WHEREAS, RCW 39.34 authorizes local governments to enter into agreements for joint and cooperative undertakings; and WHEREAS, statutes and regulations concerning the provision of emergency medical services and trauma care include Chapters 18.71, 18.73, 70.168 RCW and Chapter 246-976 WAC;and WHEREAS, the County, with approval from the voters of Skagit County and as authorized by RCW 84.52.069, collects a countywide Emergency Medical Services (EMS)levy,which is independently accounted for in the "EMS Fund"; and WHEREAS, on July 25, 2018, the Skagit County Board of County Commissioners enacted Ordinance No. 020180008,which created a fire-based emergency medical services delivery model; and WHEREAS, the Board of Skagit County Commissioners (BOCC)is responsible for disbursing EMS levy funds, ensuring a unified and integrated EMS system on a county-wide basis, and fulfilling administrative and oversight functions of the EMS system; and WHEREAS, the existing EMS levy expires on December 31,2024, and the voters of Skagit County have approved a replacement EMS levy that begins on January 1, 2025 and expires on December 31, 2030; and WHEREAS, the Cities each represent that they currently operate municipal fire departments with qualified and experienced operational personnel through which they currently provide both basic life support(BLS) and advanced life support(ALS) level responses and transports; and WHEREAS, Aero Skagit operates as a nonprofit corporation for the provision of both basic life support (BLS)and advanced life support(ALS) responses and transports in the East portion of Skagit County; and WHEREAS, changing demographics in the County, along with a desire for greater utilization of tiered response, has resulted in changes in the nature of service delivery, expectations for service, and capacity of various agencies to deliver service,all of which have driven the need to reconstruct the contractual relationship with Parties through an updated,sustainable model of still-unified EMS system to deliver emergency medical services through the cities and the unincorporated areas of the County;and EMS INTERLOCAL AGREEMENT-SKAGIT COUNTY 2025-2030 Page 1 of 26 WHEREAS, this Agreement will replace and supersede the previous Interlocal Agreement for EMS services; and WHEREAS, the Parties to this Agreement are willing to work cooperatively to deliver seamless, countywide EMS services with funding from the EMS levy as outlined in this Agreement. EMS revenues are not intended to supplant current fire department funding; however,this model creates certainty, consistency, and economy of scale in the provision of Emergency Medical Services. THEREFORE, in consideration of the terms,conditions, covenants, and obligations contained herein,the Parties mutually agree as follows: AGREEMENT 1. PURPOSE: The purpose of this Agreement is to continue a unified system of delivery of both BLS and ALS emergency medical services and transport throughout Skagit County to be performed by Providers pursuant to Exhibit A, " Scope of Work" and as otherwise specified in this Agreement. 2. TERM OF AGREEMENT: The term of this Agreement shall commence January 1,2025 and shall continue until December 31,2030. 3. MANNER OF FINANCING: Providers shall be compensated as detailed in "Exhibit C, Compensation". 4. DEFENSE& INDEMNITY AGREEMENT: To the extent of its comparative liability, each Party agrees to indemnify,defend and hold the other party, its elected and appointed officials, employees, agents and volunteers, harmless from and against any and all claims, damages, losses and expenses, including but not limited to court costs, attorney's fees and alternative dispute resolution costs, for any personal injury, for any bodily injury, sickness,disease or death and for any damage to or destruction of any property(including the loss of use resulting therefrom)which are alleged or proven to be caused by an act or omission, negligent or otherwise,of its elected and appointed officials, employees, agents or volunteers. In the event of any concurrent act or omission of the Parties, each Party shall pay its proportionate share of any damages awarded.The Parties agree to maintain a consolidated defense to claims made against them and reserve all indemnity claims against each other until after liability to the claimant and damages, if any, are adjudicated. If any claim is resolved by voluntary settlement and the Parties cannot agree upon the apportionment of damages and defense costs,they shall submit apportionment to binding arbitration. Parties to this Agreement are fully responsible for any liability related to subcontracting the work in this Agreement.Any indemnification agreed to between a primary party to this Agreement and their subcontractor does not supersede nor negate the indemnification in this Agreement. The Parties agree all indemnity obligations shall survive the completion,expiration or termination of this Agreement. 5. TERMINATION:This Agreement may be terminated prior to the expiration of the Agreement Term for the following listed reasons. Termination of a Provider shall not invalidate this Agreement in regard to the other non-terminating Providers. 5.1 Termination for Public Convenience: Any Party may terminate this Agreement for public convenience by giving 18 months' notice in writing either personally delivered or mailed EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 2 of 26 postage-prepaid by certified mail, return receipt requested, to the party's last known address for the purposes of giving notice under this paragraph. 5.2 Termination for Default: Subject to paragraphs 6, 7&8 of this Agreement, County may terminate this Agreement if Provider fails to perform or adhere to the requirements detailed in this Agreement. Providers may terminate this Agreement due to default of the County 5.3 Immediate Termination: The County may immediately terminate this Agreement in regard to any Provider that is unable to perform the required services for any of the below listed reasons. If the County elects to invoke immediate termination the Agreement shall be deemed terminated upon notice of such to Provider. 5.3.1 Provider not having a valid Advanced Life Support level trauma-verified ambulance service license issued by the Washington State Department of Health 5.3.2 Inability to bill Medicare 6. DILIGENT ENDEAVORS The undersigned Parties hereby enter a mutual covenant, undertaking to conduct all interactions with one another in a manner consistent with good faith principles. The Parties commit to undertaking all reasonable efforts to expeditiously and amicably resolve any disputes that may arise, with a view to fostering a mutually advantageous and enduring collaborative partnership. 7. EMS STANDARDS It is further agreed by all Providers hereto that they shall abide by the appliable standards and requirements of the Washington State Department of Health (hereinafter referred to as"DOH"), as set forth in Chapter 246-976 WAC regarding Emergency Medical Services and Trauma Care Systems, and all policies and protocols established by the DOH appointed EMS Physician Medical Program Director(hereinafter referred to as"MPD") in accordance with Chapter 246-976- 920 WAC"Medical program director." 8. VENUE AND DISPUTE RESOLUTION: This paragraph establishes the sole and exclusive remedy for disputes arising under this Agreement,except as otherwise set forth in paragraphs 6&7. Both in the event of any dispute arising under this Agreement and prior to any termination for cause, except immediate termination as set forth in paragraph 5. 3,the Parties shall, as a material condition precedent to any suit or termination for cause under this Agreement, provide formal written notice of the dispute to the other party, and engage in formal mediation using a mutually agreed upon mediator. If the Parties are unable to agree on a mediator within fifteen(15)days of written notice, any party may bring suit in Snohomish County Superior Court for the sole purpose of seeking appointment of a mediator. If the Parties are unable to resolve their differences within thirty(30)days after mediation: (1)venue and jurisdiction for any action arising under this Agreement shall lie in the Courts of Snohomish County, Washington, and (2)a termination for cause may be imposed. In the event of any dispute arising under this Agreement,each Party shall be responsible for its own attorney fees,costs, expert witness fees, and all other costs related to the dispute.The Parties shall divide mediation costs evenly. This Agreement shall be governed by the laws of the State of Washington. 9. SUBCONTRACTING: Provider may subcontract all or a portion of the services. Provider must give County 60 days advance written notice of its intent to subcontract which shall include the name (s)of such subcontractor(s). Provider shall require that their subcontractors be bound by same terms and conditions contained in this Agreement including insurance and indemnification requirements. Provider subcontractors must be part of the County dispatch system have all required licenses and training required under state and MPD protocols and must be under MPD authority. If EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 3 of 26 Provider subcontracts all or a portion of the services pursuant to this Agreement to a non-public entity, Providers subcontractors must name the County as an additional insured on all required polices (unless specifically waived in writing by Skagit County's Risk Manager)and must be bound by the applicable Exhibit El Insurance (Public Agencies that are full members of a governmental risk pool or Exhibit E2 Insurance (Nonpublic agencies or providers that are not full members of a governmental risk pool).The mutual aid agreements and automatic aid agreements between and among the Parties in effect prior to January 1,2025 are not subject to this paragraph and shall not constitute default of this Agreement. 10. CONSENT TO ALLOW PROVIDERS TO OPERATE AMBULANCE SERVICES IN OTHER PROVDERS BOUNDARIES: By signing this Agreement, Providers agree to allow the other Providers (and their subcontractors)to operate ambulance services in their boundaries. 11. INSURANCE: Providers agree to be bound by the insurance requirements set forth in the applicable Exhibit El Insurance(Public Agencies that are full members of a governmental risk pool)or Exhibit E2 Insurance (Nonpublic agencies or providers that are not full members of a governmental risk pool). 12. LOCAL EMS&TRAUMA CARE COUNCIL ADVISORY BOARD &NORTH REGION EMS& TRAUMA CARE COUNCIL: Providers are encouraged, but not required,to participate in the Skagit County EMS&Trauma Care Council Advisory Board and the North Region EMS& Trauma Care Council, subject to the membership requirements of their respective bylaws. 13. INDEPENDENT CONTRACTOR: The Provider's services shall be furnished by the Provider as an independent Provider and nothing herein contained shall be construed to create a relationship of employer-employee or master-servant, but all payments made hereunder, and all services performed shall be made and performed pursuant to this Agreement by the Provider as an independent contractor. 14. NO GUARANTEE OF EMPLOYMENT: The performance of all or part of this contract by the Provider shall not operate to vest any employment rights whatsoever and shall not be deemed to guarantee any employment of the Provider or any employee of the Provider or any subcontractor or any employee of any subcontractor by the County at the present time or in the future. 15. PROVIDER ACKNOWLEDGMENT: The Provider acknowledges that the entire compensation for this Agreement is specified in Exhibit"C"and the Provider is not entitled to any county benefits including, but not limited to:vacation pay, holiday pay,sick leave pay, medical, dental, or other insurance benefits,or any other rights or privileges afforded to Skagit County employees. 16. RIGHT TO REVIEW: The County or its designee shall have the right to review and monitor the financial and service components of this Agreement. Such review shall occur with three days' notice; (absent cause)and may include, but is not limited to, onsite inspection by County agents or employees during Provider's normal business hours, inspection of all records or other materials which the County deems pertinent to the Agreement and its performance, and any and all communications with or evaluation by service recipients under this Agreement. County will conduct such review or execute necessary agreements as needed in order for such review to be HIPAA-compliant. Provider shall preserve and maintain all financial records and records relating to the performance of work under this Agreement pursuant to the Washington State record retention schedule, and shall make them available for such review, within Skagit County, State of Washington, upon request. 17. CHANGES, MODIFICATIONS,AMENDMENTS AND WAIVERS: The Agreement may be changed, modified, amended or waived only by written agreement executed by the Parties. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 4 of 26 Waiver or breach of any term or condition of this Agreement shall not be considered a waiver of any prior or subsequent breach. 18. SEVERABILITY: In the event any term or condition of this Agreement or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other terms, conditions or applications of this Agreement which can be given effect without the invalid term, condition, or application. To this end,the terms and conditions of this Agreement are declared severable. 19. ENTIRE AGREEMENT: This Agreement contains all the terms and conditions agreed upon by the Parties.All items incorporated herein by reference are attached. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the Parties hereto. 20. NO PARTNERSHIP OR JOINT VENTURE: No partnership and/or joint venture exists between the Parties, and no partnership and/or joint venture is created by and between the Parties by virtue of this Agreement. No agent, employee,contractor,subcontractor, consultant, volunteer,or other representative of the Parties shall be deemed an agent, employee, contractor, subcontractor, consultant, volunteer,or other representative of the other party. 21. NO THIRD-PARTY BENEFICIARIES: This Agreement is not intended to nor does it create any third-party beneficiary or other rights in any third person or party, including, but not limited to, property owners and/or residents located at or in the vicinity of the services provided,or any agent, provider,subcontractor, consultant, volunteer,or other representative of either party. Response times set forth in this Agreement or later agreed among the Parties are targets and do not constitute an admission or representation that any response time constitutes an ordinary standard of care for the community. Response times set forth in this Agreement or later agreed shall not constitute nor is intended to create a special relationship or duty to any persons or class of persons. 22. NEUTRAL AUTHORSHIP: Each of the terms of and provisions of this Agreement have been reviewed and negotiated and represents the combined work product of the Parties hereto. No presumption or other rules of construction which would interpret the provisions of the Agreement in favor of or against the Party preparing the same shall be applicable in connection with the construction of interpretation of any of the provisions of this Agreement. The Parties represent that they have had a full and fair opportunity to seek legal advice with respect to the terms of this Agreement and have either done so or have voluntarily chosen not to do so. The Parties represent and warrant that they have fully read this Agreement,that they understand its meaning and effect, and that they enter into this Agreement with full knowledge of its terms.The Parties have entered into this Agreement without duress or undue influence. 23. SURVIVAL: The provisions of paragraphs 3,4, 13, 16, 20,and 21 shall survive, notwithstanding the termination or invalidity of this Agreement for any reason. 24. COUNTERPARTS: This Agreement may be executed in counterparts by the Parties. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 5 of 26 DATED this day ofAja 2024. BOARD OF COUNTY COMMISSIONERS SKAGIT COUNTY,WASHINGTON Peter Bro ing, hair Lisa Janicki,Com issioner Attest: Ron Wesen,Commissioner Clerk of the Board For contracts under$5,000: Authorization per Resolution R20030146 Recommender County Administrator C Depa ent Head zyas:0 fo .� Civil Deputy Prosecuting Attorney Approved as to indemnification: Risk Manager Approved as to budget: Budget&Finance Director EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 6 of 26 )cusp Envelope ID 271 1 0736-28 2D-46B9-A480-BEA3CAAB46BE DATED this 7/29j2024 APPROVED: CRY OF ANACORTES,WASHINGTON Mayor Approved as to form: Attest: 1/AL4f �Wl><ln/UM +AA tn. I/. hPlltPn_ City Attomey City Clerk EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 7 of 26 CONTRACTOR (Aero-4kagit Emergency Services) Board P resident D�ate .= Print Name of Signatory Mailing Address: P.O.Box 705 Concrete WA 98237 Telephone No,Q60)853-8831 Fed.Tax ID#9 1-1 2002 6 7 Contractor Lic.#600 087 B33 EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 8 of 26 DATED this kd'p __day of APPROVED: CITY OF MOUNT VERNON,WASHINGTON `-,+ Mayor Approved as to form: Attest: -� City Attorney City Clerk EMS INTERLOCAL AGREEMENT-SKAGIT COUNTY 2025-2030 Page 9 of 26 Docusign Envelope ID ADSC1419-2FC8-494F-8D18-5B99F34DE078 DATED this 24 day of July , 2024. APPROVED: CITY OF SEDRO-WOOLLEY, WASHINGTON DocuSigned by: is yu"S&, ayor Approved as to form: Attest: DocuSigned by: DocuSigned by: City Attorney i err EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 10 of 26 DATED this 0 day of APPROVED C p LI T SHIN13TON t' � r d yor Approved as to form: Attest: O onzey _ piterk EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 11 of 26 k EXHIBIT A: SCOPE OF WORK Providers shall provide trauma-verified ambulance services on a twenty-four(24)hours per day, (7)days per week basis,with appropriate personnel, ambulances, and equipment in accordance with WAC Chapter 246-976, North Region EMS&Trauma Care Patient Care Procedures, and other applicable laws, regulations, ordinances, and established policies of the Skagit County Medical Program Director when authorized by state law. A. Definitions: a. "ALS" is Advanced Life Support b. "BLS" is Basic Life Support c. "Call" is defined as a unique call ID assigned by Skagit 911. If the Provider with more than one unit, it will be counted as only one call. d. "CQIP"is Coordinated Quality Improvement Plan e. "DOH" is Department of Health f. "EMS"is Emergency Medical Services g. "Enroute Time" is defined as the time the responding personnel are on board their assigned apparatus and driving to the incident. h. "Geographic Service Area"is defined as the Provider's combined primary and secondary response areas as shown in Exhibit D. i. "In-service unit"is defined as a unit that is appropriately staffed and equipped and is available for immediate dispatch and response. j. "Medical Program Director"or"MPD" is a physician recognized to be knowledgeable in the county's administration and management of pre-hospital emergency medical care and services and functions under RCW 18.73.212 and WAC 246- 976-920 as appointed by the Washington State Department of Health. k. "Patient" is defined as a person who has been encountered by an EMS professional and potentially requires a medical evaluation.This includes determination of death, an auto accident, lift assist, ground level fall, etc. I. "Recommended Unit Dispatch" is a module within the CAD system that prioritizes which unit to dispatch to an incident based on established parameters including but not limited to the real-time GPS location of the unit to the location of the call. m. "Response Time" is defined as the time interval between the activation of pagers/station alerting devices of the assigned unit to when the unit arrives at the scene ("Tone Time"to"Arrived"). n. "Rural Response Areas" are defined as an unincorporated or incorporated area with a total population of less than ten thousand (10,000)people,or with a population density of less than one thousand (1,000)people per square mile. o. "Suburban Response Areas" are defined as incorporated or unincorporated area with a population of ten thousand (10,000)to twenty-nine thousand nine hundred ninety-nine (29,999)or any area with a population density of between one thousand and two thousand people per square mile. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 12 of 26 p. "Time on task"is defined as the time from when a unit is assigned to a call until that unit is available for another response. q. "Tone Time"is defined as the time of activation of pagers/station alerting devices of the assigned unit. r. "Travel Time" is defined as the time interval between when responding personnel are on board their assigned apparatus and driving to the incident to when the unit arrives at the scene ("Enroute"to"Arrived"). s. "Turnout Time" is defined as the time interval between the activation of pagers/station alerting devices to when the responding personnel are on board their assigned apparatus and driving to the incident("Tone Time"to"Enroute"). t. "Unavailable in the CAD system"is defined as when a Provider's unit is not available to be assigned to an incident. u."Urban Response Areas"are defined as (a) an incorporated area over thirty thousand (30,000)population or(b)an incorporated or unincorporated area of at least ten thousand (10,000) population and a population density over two thousand (2,000)people per square mile. v. "WEMSIS" is Washington EMS Information System, a state EMS data repository managed by the Department of Health. w. "Wilderness Response Areas"are defined as any rural area not readily accessible by public or private maintained road. B. Response Performance: 1. Unless all of Provider's units are unavailable in the CAD system or already assigned to a call, Providers shall respond to ALS and BLS calls they are dispatched to in accordance with mutually agreed upon recommended unit dispatch plans. 2. Parties recognize that variation in response times for each Provider are likely to occur due to variation in call volume and geography. Providers will strive to meet or exceed the following minimum agency response times for all EMS and trauma responses within their geographic services area as shown in Exhibit D: a. To urban response areas: Ten (10) minutes or less, eighty(80)percent of the time; b. To suburban response areas: Twenty(20)minutes or less, eighty(80)percent of the time; c. To rural response areas: Forty-five (45)minutes or less, eighty(80)percent of the time; d. To wilderness response areas: As soon as possible. C.Operations 1. Provider agrees that they are responsible to meet all local, state, and federal requirements for records retention and that the County possessing copies of any records does not release the Provider from that responsibility. 2. Provider, on reasonable request,will make available to County, proof that the Provider is in compliance with any or all local, state,or federal rules and regulations or laws pertaining to operation of their agency, as it pertains to this contract. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 13 of 26 3. Provider shall notify the County's EMS Director in writing within 3 business days when a certified individual affiliated with their agency is disciplined for circumstances that would constitute unprofessional conduct under RCW 18.130.180 of the Uniform Disciplinary Act. D. Patient Care Documentation 1. Providers agree to utilize a WEMSIS-compliant electronic patient care reporting system and to follow MPD-approved patient care protocols and guidelines related to patient care documentation. 2. Parties agree to work together toward continuous improvement of EMS data quality and overall optimization of the designated EMS patient care data collection system. E.Coordinated Quality Improvement Plan(CQIP) 1. Providers will participate in the periodic review and update of an MPD Coordinated Quality Improvement Plan (CQIP)as approved by DOH. 2. Parties will work cooperatively and participate in the continuous quality improvement of emergency medical services within Skagit County. 3. Providers will strive to meet or exceed clinical performance measures and key performance indicators as outlined in the MPD CQIP. 4. County reserves the right at the MPDs discretion to require additional provider quality assurance checks. When this is required, Providers will be given a minimum of 30 days notice and training on what the additional assurance checks are and how to perform them. F. Medical Director 1. County will contract with one or more qualified physicians appointed by the DOH to serve as the EMS physician Medical Program Director(MPD)/Physician MPD Delegate (MPDD). 2. Providers may participate in the review and periodic revision of the MPD and MPDD contract Scope of Work and to provide feedback related to EMS system clinical oversight and MPD/MPDD performance. 3. If the majority of Providers do not feel the MPD/MPDD is meeting the collective needs of the Providers, an adjustment to the MPD/MPDD contract, not to exclude compensation will be made. G. Medical Protocols 1. Providers will participate in the review and periodic update of EMS Protocols, Patient Care Guidelines and Procedures in coordination with the MPD or his/her designee. 2. All Providers EMS-credentialed field personnel will provide medical care in accordance with the EMS Protocols, Patient Care Guidelines and Procedures established by the MPD and approved by the DOH. 3. County will provide training materials related to approved medical protocols to each Provider. 4. Any protocol change will have a minimum of sixty(60)days' notice to Providers. a. Parties recognize that extenuating circumstances may occur where the expedient implementation of protocol changes is required. In such cases, as much notice as reasonably possible will be given to Providers. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 14 of 26 b. In all cases of protocol change, County will provide appropriate training on the protocol change(s). H. EMS Continuing Education&Training 1. County will develop and maintain an MPD and DOH approved Ongoing Training and Evaluation Program(OTEP)for EMS continuing education for the EMR, EMT,and Paramedic certification levels. 2. WAC 246-976-161 allows for credentialed EMS personnel to complete one of two methods of continuing education for the purposes of recertification of their EMS credential. Provider will require affiliated EMS-credentialed field personnel to either(a)participate in the approved Skagit County EMS OTEP and required skills maintenance or(b)to complete the Continuing Medical Education (CME) method and required skills maintenance for each certification period. 3. County will provide, at its sole expense by use of EMS levy funds, access to a county-wide online learning management(LMS)system for the delivery of MPD-approved EMS continuing education and training material for all Provider affiliated EMS-credentialed field personnel. a. Providers will notify County of any changes in Provider affiliated EMS-credentialed field personnel for the purpose of maintaining access to the county-wide LMS. I. Credentials/Licensing 1.At all times, Provider personnel performing medical services under this Agreement shall be certified to practice in the State of Washington and Skagit County when required or allowed by law. J. Equipment and Supplies 1. Provider is responsible to purchase and maintain all equipment, vehicles, supplies, and software needed to provide services to fulfill the contract. 2. From time to time the Medical Program Director may require through patient care protocols the implementation of new supplies and/or equipment above and beyond the minimum DOH requirements specified in WAC 246-976-300. In these instances, the initial purchase to outfit Provider(s)will be funded either directly by County for distribution to Provider(s) (includes the use of grant funding secured by County on behalf of Provider(s)such as North Region EMS&Trauma Care Council),or funded by the Provider(s)with reimbursement provided by County upon receipt of documentation of actual expenses paid by Provider(s). K. Federal Funding and HIPAA 1. Provider is responsible for complying with all current rules and regulations associated with providing services for recipients of and being reimbursed by Medicare, Medicaid and other state and federally funded programs, and any amendment thereto. 2. Parties will comply with all applicable rules and regulations. Parties agree to adhere to any specific HIPAA protocols, including any required training related to transmitting, storing, and using HIPAA information pursuant to this Agreement. 3.Any suspected or actual violations of HIPAA rules and regulations, including a breach of PHI confidentiality, shall be reported within three business days to the other party's designated official, along with their actions to mitigate the effect of such violations. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 15 of 26 L. Billing 1. Providers agree to bill for ambulance transport in accordance with the Ambulance Transport Fee Schedule established by Skagit County adopted Resolution#R20220001 or as subsequently amended by the Board of Skagit County Commissioners. 2. Providers agree to expend reasonable efforts to maximize allowable reimbursement for ambulance transport to offset their EMS expenses. 3. Providers will make available to County their ambulance transport reimbursement (billing and revenue collection)data upon reasonable request, for the purpose of County periodic review and, if necessary, modification of the Ambulance Transport Fee Schedule.To the extent applicable, rates and charges shall be set in compliance with RCW 35.21.766(3). M. Emergency Communication Center User Fees 1. County will pay directly to Skagit 911 a portion of Provider communications user fees based on Exhibit B FORMULA FOR ALLOCATION OF SKAGIT 911 FINANCIAL RESPONSIBILITY or as subsequently amended. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 16 of 26 EXHIBIT B: FORMULA FOR ALLOCATION OF SKAGIT 911 FINANCIAL RESPONSIBILITY FORMULA FOR ALLOCATION OF SKAGIT 911 FINANCIAL RESPONSIBILITY Financial allocation of the SKAGIT 911 Annual Operating Budget shall be determined as set forth below: 1. A draft/preliminary Annual Operating Budget shall be calculated no later than August each year for presentation and recommendation in September to the SKAGIT 911 Board. 2, External revenues will be estimated and will include sales tax,phone tax and Stale E911 funding. 3. The SKAGIT 911 Board will approve a pre-determined percentage of the External revenues to be set aside and reserved for investment in the Operational Reserve, Equipment Reserve&Replacement and Capital Outlay funds. 4. All costs will be allocated via costing modules for Administrative, Law and Fire/EMS costs. a. The administrative costing module will consist of all overhead, facility maintenance costs, administrative and supervisory staff, technological needs and maintenance. b, The Law costing module will consist of the wages and salaries of all Law Dispatchers and support services. c- The Fire/EMS costing module will consist of the wages and salaries of all Fire Dispatchers and support services. 5. Once all costs have been allocated to the oust centers, the remaining External revenues will be applied to the budget. The remaining costs will be allocated to the Law and Fire/EMS Agencies using the below allocations: a. Law Agency costs will be prorated at 50%previous full year call volume and 50%previous year commissioned officers, with each agency prorated the appropriate percentage of the costing module and the Administrative costs, based on a percentage of resources used b. Fire/EMS Agency costs will be prorated at 50% previous full year call volume and 50%previous year assessed value,with each agency allocated the appropriate percentage of the costing module and the Administrative costs,based on a percentage of resources used, c. A pre-determined percentage of the Fire Agency calls will be paid directly to Skagit 911 by the EMS office,with the balance being billed to each Fire agency. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 17 of 26 EXHIBIT C: COMPENSATION FOR 2025-2030 EMS LEVY CYCLE 1. Skagit County has forecast a total of$72,495,015 will be available, assuming the Board of County Commissioners approves a 1% property tax increase annually for the provision of services detailed in this Agreement. Skagit County shall pay Providers the following amounts which shall be inclusive of all supplies, equipment, labor, and any additional costs and expenditures for the provision of services pursuant to this Agreement: A. Aero Skagit—Annual amount, to be billed in equal monthly installments, at the end of each month, as follows: 2025 $1,412,671 2026 $1,469,178 2027 $1,527,945 2028 $1,589,063 2029 $1,652,625 2030 $1,718,730 B. City of Anacortes—Annual amount, to be billed in equal monthly installments, at the end of each month, as follows: 2025 $2146,396 2026 $2,232,252 2027 $2,321,542 2028 $2,414,404 2029 $2,510,980 2030 $2,611,419 C. City of Burlington —Annual amount, to be billed in equal monthly installments, at the end of each month, as follows: 2025 $1,834,221 2026 $1,907,590 2027 $1,983,894 2028 $2,063,250 2029 $2,145,780 2030 1 $2,231,611 EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 18 of 26 D. City of Mount Vernon—Annual amount,to be billed in equal monthly installments, at the end of each month, as follows: 2025 $3,612,531 2026 $3,757,032 2027 $3,907,314 2028 $4,063,606 2029 $4,226,150 2030 $4,395,196 E. City of Sedro-Woolley—Annual amount, to be billed in equal monthly installments, at the end of each month, as follows: 2025 $1,625,794 2026 $1,690,826 2027 $1,758,459 2028 $1,828,797 2029 $1,901,949 2030 $1,978,027 2. If at any time during the term of this Agreement,there is a reduction in assessed value such that an increase of 1%of the levy above the previous year is not possible, Parties agree to a proportionate reduction of funding in the payment amounts listed above. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 19 of 26 EXHIBIT D: SKAGIT COUNTY EMS PROVIDER GEOGRAPHIC SERVICE AREAS r' f 5 C j 1]ate 3}Y, �.•� t I C y;i I J�• v r M � � r m vo s mm 3 , � f'f o- 3' r f f f Y f 1 I I r EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 20 of 26 EXHIBIT E1: INSURANCE (Public Agencies who are full members of a government risk pool) 1. Agreement to provide coverage per specifications: Prior to beginning of and throughout the duration of the Work, Providers agree to maintain full membership in a governmental risk pool in order to be compliant with the provisions of this attachment. Full membership in a government risk pool in Washington State is sufficient coverage to meet the insurance requirements of this agreement notwithstanding any other provision of this Agreement. Provided that the insurance coverage of the Pool does not exclude the providing of medical services unless such exclusion provides an exemption for emergency medical services. 2. Evidence of insurance: Provider agrees to provide evidence of their membership in a governmental risk pool. 3. Priority of interpretation: The requirements of this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 4. Notice of cancellation/change: Provider agrees to provide notice to County 30 days prior to cancellation of membership in a governmental risk pool or of any material alteration to their insurance coverages. 5. Primary and non-contributing: Per the provisions of the indemnification language of this agreement Provider's insurance coverage shall be primary for claims filed against the provider only. In such cases, any insurance or coverage available to the County, its officers, officials, employees or volunteers shall be excess of Provider's insurance and shall not contribute to it. 6. Insurance"flowdown": Provider agrees to require all subcontractors or other parties hired for this project,who are not public agencies who are full members of a governmental risk pool, to provide the insurance as outlined in Exhibit E2, unless otherwise agreed to in writing by the County.The subcontractor's general liability insurance shall all as additional insureds all parties to this Agreement using Insurance Services Office form CG 20 10 with an edition date prior to 2004. Provider agrees to obtain certificates evidencing such coverage as required in Exhibit E2. 7. Party's rights to revise requirements: Should any party to this agreement believe that a change in types or levels of insurance coverages may be necessary the parties agree to meet and discuss the proposed changes and discuss appropriate increased compensation to offset increased Provider cost. 8. County's rights of enforcement: In the event any party to this agreement who is a full member of a governmental risk pool ceases to be a member during the duration of this agreement they shall immediately be held to the provisions in Exhibit E2. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 21 of 26 9. Enforcement of contract provisions (non-estoppel): Provider acknowledges and agrees that any actual or alleged failure on the part of the County to inform Provider of non-compliance with any requirement imposes no additional obligations on the County nor does it waive any rights hereunder. 10. Risk pool membership is a Condition of Payment: Payments due to Provider under this Agreement are expressly conditioned upon the Provider's full membership in a governmental risk pool. Payment to the Provider shall be suspended in the event of a loss of membership, unless the Provider is compliant with Exhibit E2. Upon receipt of evidence of full compliance with Exhibit E2, payments not otherwise subject to withholding or set-off will be released to Provider. 11. Claim notice requirement: Provider agrees to provide notice to County of any claim or loss against the Provider arising out of the work performed under this agreement, no more than 30 days from the time that the Provider becomes aware that claimed damages may exceed their insurance coverage limits, only for those claims in which they are solely named. County assumes no obligation or liability by such notice. 12. Additional insurance: Provider shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgement may be necessary for its proper protection and prosecution of the Work. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 22 of 26 EXHIBIT E2: INSURANCE (Non-Public Agencies or Providers who are full members of a government risk pool) This Exhibit, "E2: Insurance"sets forth the insurance requirements for Providers and subcontractors that are non-public agencies that do not participate as full members of a governmental risk pool. 1. Agreement to provide coverage per specifications: Prior to the beginning of and throughout the duration of the Work, Providers agree to provide and maintain insurance in accordance with requirements set forth here. Providers acknowledge that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds in excess of the limits and coverage required in this Agreement and which is applicable to a given loss,will be available to the County. 2. Additional insured requirements: Provider agrees to obtain endorsements for third parry general liability coverage required here to include as Certificate Holder and additional insureds"Skagit County, its officials, employees and agents." Provider also agrees to require this same provision of all providers, subcontractors, agents of other Parties engaged by or on behalf of Provider in relation to this Agreement.This provision shall also apply to any excess liability policies. Public Agencies are not required to name the County as an additional insured on required policies. All non-public agency subcontractors must comply with the additional insured requirements. 3. Evidence of insurance: Provider agrees to provide evidence of the insurance required herein, satisfactory to County, consisting of: a)certificate(s)of insurance evidencing all of the coverages required and, b)an additional insured endorsement to Providers general liability policy using Insurance Services Office (ISO)form CG 20 10 with an edition date prior to 2004. If the Provider's insurer provides additional insured coverage through either the ISO"Automatic Additional Insured"endorsement or through direct incorporation in policy language, Provider must provide a copy of the automatic endorsement or a copy of the section of the policy granting such status. Provider agrees, upon request by County,to provide complete, certified copies of any policies and/or endorsements required within 10 days of such request. Any actual or alleged failure on the part of County or any other additional insured under these requirements to obtain proof of insurance required under this Agreement in no way waives any right or remedy of County or any additional insured, in this or in any other regard. 4. Prohibition of undisclosed coverage limitations: None of the policies required herein shall be in compliance with these requirements if they include any limiting endorsement that has not been first submitted to County and approved of in writing. 6. Priority of interpretation: The requirements of this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 23 of 26 6. Acceptable insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of Washington, with an assigned policyholders'rating of A-(or higher)and Financial Size Category Class VII (or larger)in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the County's Risk Manager. 7. Notice of cancellation/change: Provider agrees to require insurers to provide notice to County 30 days prior to cancellation of any coverage required herein or of any material alteration or non-renewal of any such coverage, other than for non-payment of premium. Provider shall assure that this provision also applies to any subcontractors,joint ventures or any other party engaged by or on behalf of Provider in relation to this Agreement. Certificate(s) are to reflect that the issuer will provide 30 days'notice to County of any cancellation of coverage. 8. Primary and non-contributing: Provider's insurance coverage shall be primary.Any insurance or coverage available to the County, its officers, officials, employees or volunteers shall be in excess of Provider's insurance and shall not contribute to it. 9. Prohibition against self-insurance: Self-insurance will not be considered to comply with these insurance specifications, unless otherwise agreed to in writing by the County.Any"self-insured retention"must also be declared and approved by the County. County reserves the right to require the self-insured retention to be eliminated or replaced by a deductible. Self-funding, policy fronting or other mechanisms to avoid risk transfer are not acceptable. If Provider has such a program, Provider must fully disclose such program to the County. 10. No change in scope or limits: All coverage types and limits required are subject to approval, modification, and additional requirements by the County, as the need arises. Provider shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period)that may affect County's protection without County's prior written consent. 11. Provider's waiver of subrogation: All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against County, its elected or appointed officers, agents, officials,employees and volunteers or shall specifically allow Provider or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Provider hereby waives its own right of recovery against the County and shall require similar written express waivers and insurance clauses from each of its subcontractors. 12. Insurance"flowdown": Provider agrees to require all subcontractors or other Parties hired for this project to provide the same insurance as required of Provider unless otherwise agreed to in writing by the County. The subcontractor's general liability insurance shall add as additional insureds all Parties to this Agreement using Insurance Services Office form CG 20 10 with an edition date prior to 2004. Provider agrees to obtain certificates evidencing such coverage as required here. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 24 of 26 13. County's right to revise requirements: The County reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving Provider ninety(90)days advance written notice of such change. If such change results in substantial financial impact to provider,the Parties agree to meet and discuss appropriate increased compensation to offset increased Provider cost. 14. County's rights of enforcement: In the event any policy of insurance required under this Agreement does not comply with the specifications in this Exhibit or is canceled and not replaced, the County has the right but no the duty to exercise one of the following options: 1)obtain the insurance it deems necessary and any premium paid by the County will be promptly reimbursed by Provider or County will withhold amounts sufficient to pay premium from Provider payments, 2)the County may cancel this Agreement. If County exercises option 1 above, upon receipt of evidence of full compliance, payments not otherwise subject to withholding or set-off with be released to the Provider. 15. Enforcement of contract provisions (non-estoppel): Provider acknowledges and agrees that any actual or alleged failure on the part of the County to inform Provider of non-compliance with any requirement imposes no additional obligations on the County nor does it waive any rights hereunder. 16. Insurance is a Condition of Payment: Payments due to Provider under this Agreement are expressly conditioned upon the Provider's strict compliance with all insurance requirements under this Agreement. Payment to the Provider shall be suspended in the event of non-compliance, unless other resolution is agreed to by the County. Upon receipt of evidence of full compliance, payments not otherwise subject to withholding or set-off will be released to Provider. 17. Non-limitation of contract language: Requirements of specific coverage features are not intended as limitation on other requirements or as a waiver of any coverage normally provided by any given policy. Specific reference to a coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all-inclusive. 18. Annual renewal requirement: Provider will renew the coverage required here annually as long as Provider continues to provide any services under this or any other contract or agreement with the County. Provider shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Provider's insurance agency to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to County no less than five days prior to the expiration of the coverages. Failure to provide such evidence may result in a stop of payment to the Provider, or other resolution agreed to by the County. 19. Claim notice requirement: Provider agrees to provide immediate notice to County of any claim or loss against Provider in excess of$20,000 arising out of the work performed under this Agreement. County assumes no obligation or liability by such notice but has the right(but not the duty)to monitor the handling of any such claim or claims if they are likely to involve County. 20. Additional insurance: EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 25 of 26 Provider shall also procure and maintain, at is own cost and expense, any additional kinds of insurance,which in its own judgement may be necessary for its proper protection and prosecution of the Work. Provider shall provide the following types and amounts of insurance: ® Commercial General Liability Insurance using ISO"Commercial General Liability"policy form CG 00 01,with an edition date prior to 2004, or the exact equivalent. Coverage for additional insured may no be limited to is vicarious liability. Defense costs must be paid in addition to limits. Limits shall be no less than $10,000,000 per occurrence and$10,000,000 annual aggregate for all covered loses. ® Worker's Compensation Insurance on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident for all covered losses. Enrollment in the state worker's comp program provides this coverage. Z Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including owned, non- owned,and hired autos,or the exact equivalent. Limits shall be no less than $5,000,000 per accident and combined single limit. If Provider or Provider's employees will use personal autos in any way on this project, Provider shall obtain evidence of personal auto liability coverage for each person. If Excess or Umbrella Liability Insurance is used to meet limit requirements over the primary insurance as per this contract, such insurance shall provide coverage at least as broad as specified for the underlying coverages. Such policy or policies shall include as insured those covered by the underlying policies, including additional insureds. Coverage shall be"pay on behalf', with defense costs payable in addition to policy limits.There shall be no cross-liability exclusion precluding coverage for claims or suits by one insured against another.Coverage shall be applicable to County for injury to employees of Provider, subcontractors or others involved in the Work. The scope of coverage provided is subject to approval of County following receipt of proof of insurance as required herein. PROFESSIONAL LIABILITY INSURANCE REQUIREMENTS: In addition to the insurance requirements outlined in Exhibit E, Provider shall maintain professional liability insurance that covers the Emergency Medical Services performed in connection with this Agreement, in the minimum amount of$10,000,000 per claim and$10,000,000 in the aggregate. Any policy inception date, continuity date, or retroactive date for professional liability coverage must be before the effective date of this Agreement and Provider agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this Agreement. If Excess or Umbrella Liability Insurance is used to meet limit requirements over the primary insurance, such insurance shall provide coverage at least as broad as specified for the underlying coverages. Such policy or policies shall include as insured those covered by the underlying policies, including additional insureds. Coverage shall be"pay on behalf', with defense costs payable in addition to policy limits. There shall be no cross-liability exclusion precluding coverage for claims or suits by one insured against another. The scope of coverage provided is subject to approval of County following receipt of proof of insurance as required herein. If the Provider's General Liability policy includes coverage for professional liability,then the General Liability policy shall meet the above professional liability requirements. In such a case, the per occurrence and per claims limits must meet the minimum set forth above for each coverage type and the annual program aggregate limit must be at a minimum of$20,000,000. The County's Risk Management Department will need to review the full policy document prior to final approval. EMS INTERLOCAL AGREEMENT—SKAGIT COUNTY 2025-2030 Page 26 of 26 pal CITIES INSURANCE ASSOCIATION J OF WASHINGTON 11- RENEWAL SUMMARY Cities Insurance Association of Washington The terms, conditions, and exclusions shown here are brief overviews of the anticipated limits and coverages included in, but not limited to, the coverages provided by the Cities Insurance Association of Washington. The terms and conditions offered may differ from your prior policy and from what you requested in your submission. This document is not intended to be used as a direct reflection of all coverages or to replace or alter the Memorandum of Coverage (MOC) in any way. Information represented in this Renewal Summary is subject to change prior to December 1. Information represented in this Renewal Summary is subject to the exclusions, terms, limitations, and conditions of the Memorandum of Coverage. All specific coverage, exclusion, and limitation questions should be referred directly to the Memorandum of Coverage and all attached endorsements. In the event of differences, the Memorandum of Coverage will prevail. Participating companies are non-admitted, unless otherwise stated. Non-admitted companies are not regulated by the Washington State Insurance Commissioner and are not protected by the Washington State Guaranty Fund. All surplus lines filings on any excess and surplus lines policies, if applicable, will be filed on behalf of CIA by Apex Insurance Agency, Inc. or Peachtree Special Risk Brokers, LLC. The Memorandum of Coverage is subject to audit. Defense costs are outside the limits, unless excess limits are purchased. Defense costs are inside the limits for members with excess liability limits scheduled on file with the company. For claims made coverages, a copy of the Extended Reporting Period MOC language is available upon request. Please note the limits shown here represent the combined full limits provided by multiple policies from various carriers. It is the responsibility of the broker to review this document to confirm its accuracy. All carriers listed herein are those anticipated to participate in the designated portions of the MOC. All carriers are subject to change prior to December 1, 2023. Notice of Cancellation for Non-Pavment We may cancel coverage within 60 days in the event of non-payment of premium. Notice of cancellation will be mailed to the Covered Member's last known address and will indicate the date on which coverage is terminated. If applicable, a copy will be mailed to the broker of record on file. Covered Member: Aero-Skagit Emergency Services PO Box 705 Concrete, WA 98237 Broker: HUB International NW Bellingham Coverage Period: 12/01/2023 to 12/01/2024 Member Since: 11/28/1996 Authorized Signature: Administered by Clear Risk Solutions CIAW Renewal Summary 2023-2024 Page 1 Coverage#: CIAW232434619 Covered Member:Aero-Skagit Emergency Services RENEWAL SUMMARY PROPERTY COVERAGE PART Item 1. CIAW Program Retention: Real and Personal Property Each Occurrence$750,000 Item 2. Limit of Coverage: Real and Personal Property Each Occurrence and Group Aggregate$100,000,000 (excluding Earthquake and Flood) Item 3. Sublimits of Coverage: The Sublimits of Coverage shown below do not increase the overall Limits listed above. 1 a. EXCLUDED Sublimit for Earthquake per Occurrence and in the annual aggregate. 1 b. $15,000,000 Annual Group Aggregate for Earthquake. 2a. EXCLUDED Sublimit for Flood per Occurrence and in the Annual Aggregate except that covered Property located at the time of loss in any flood zone identified by FEMA as Zones A,AO, AH,Al through 30,AE,A99, AR,AR/Al through 30,AR/AE,AR/AO,AR/AH,AR/A,VO,V1 through 30, VE,and V;or a similar high risk FEMA rating are subject to the following Flood sublimits: $ 1,000,000 per Occurrence and Annual Aggregate, and $15,000,000 Annual Group Aggregate. 2b. $15,000,000 Annual Group Aggregate for Flood. 3. $1,000,000 Sublimit for combined Transit and off Premises Extension per Occurrence. 4. $2,500,000 Sublimit for combined Business Interruption and Extra Expense per Occurrence. 5. $1,000,000 Sublimit for Accounts Receivable per Occurrence. 6. $2,500,000 Sublimit for Rental Income per Occurrence. 7. $1,000,000 Sublimit for Valuable Papers per Occurrence. 8. $1,000,000 Sublimit for Additionally Acquired Property per Occurrence. 9. $250,000 Sublimit for Newly Built or Constructed Property per Occurrence. 10. $2,500,000 Sublimit for Electronic Data Processing per Occurrence. 11. $25,000 Sublimit for Re-keying Expense per Occurrence and annual aggregate. 12. $1,000,000 Sublimit for Fine Arts per Occurrence. 13. Lesser of 25%of the amount paid for direct physical loss or$1,000,000 sublimit for Debris Removal Expense Extension per Occurrence. 14. Ordinance or Law Coverage A:The building value of the undamaged portion of the building as reported in the Property Schedule on file with the Company per Occurrence. 15. Ordinance or Law Coverage B: Demolition Cost is 25%of the building value as reported in the Property Schedule on file with the Company per Occurrence. 16. Ordinance or Law Coverage C: Increased cost of construction is 25% of the building value as reported in the Property Schedule on file with the Company,subject to a combined single limit of$10,000,000 for coverages B and C combined, per Occurrence 17. $50,000 Sublimit aggregate Temporary Safeguard of Property Extension per Occurrence. 18a. $100,000 Sublimit for Mold or Other Fungi as a result of covered losses. 18b. $300,000 Annual Group Aggregate for Mold or Other Fungi as a result of covered losses. 19. $100,000 Sublimit for walkways, roadways, courts,and other similar paved or artificial surfaces per Occurrence. 20. Margin Clause: 115%of the total combined stated values for Real and Personal Property shown for that location on file with the Company per Occurrence CIAW Renewal Summary 2023-2024 Page 2 Item 4. Deductible: The CIAW Program Retention listed above is in addition to the deductibles listed below. Real and Personal Property (except Earthquake, Flood, and Auto Physical Damage for Scheduled Automobiles) Property: Per Schedule on file with Company Miscellaneous Equipment: $250 Automobile Physical Damage Per Schedule on file with Company for Scheduled Automobiles Rental Vehicles Physical Damage Each Occurrence: •$250 Fire Districts/Special Districts •$1,000 Cities Earthquake: EXCLUDED Flood: EXCLUDED Item 5. Participating Carriers: Limits excess of$10,000,000 are per Occurrence for the group combined. Pennsylvania Manufacturers'Association (A+XV)Admitted $10,000,000 Per Occurrence,subject to Insurance Company(Old Republic) sublimits listed on Declarations Page Swiss Re Corporate Solutions Elite (A+XV)Admitted Part of$15,000,000 Per Occurrence excess Insurance Corporation of$10,000,000 Certain Underwriters at Lloyd's, (London (A XV)Non-Admitted Part of$15,000,000 Per Occurrence excess Syndicate HCC, RSA, Hardy) of$10,000,000 Aspen Specialty Insurance Company (A XV)Non-Admitted Part of$25,000,000 Per Occurrence excess of$25,000,000 Evanston Insurance Company (A XV)Non-Admitted Part of$25,000,000 Per Occurrence excess of$25,000,000 StarStone Specialty Insurance Company (A-XII)Non-Admitted Part of$25,000,000 Per Occurrence excess of$25,000,000 Certain Underwriters at Lloyd's, (London (A XV)Non-Admitted Part of$25,000,000 Per Occurrence excess Syndicate AXIS,QBE) of$25,000,000 RSUI Indemnity Company (A+XIV)Admitted Part of$25,000,000 Per Occurrence excess of$25,000,000 Arch Specialty Insurance Company (A+XV)Non-Admitted Part of$25,000,000 Per Occurrence excess of$25,000,000 Great American Fidelity Insurance Company (A+XV)Non-Admitted $50,000,000 Per Occurrence excess of $50,000,000 CIAW Renewal Summary 2023-2024 Page 3 Coverage#:CIAW232434619 Covered Member:Aero-Skagit Emergency Services RENEWAL SUMMARY LIABILITY COVERAGE PART Item 1. CIAW Program Retention: General Liability Each Occurrence $750,000 Wrongful Act Liability Per Claim $750,000 Automobile Liability Each Accident $750,000 Item 2. Deductible: The CIAW Program Retention listed above is in addition to the deductibles listed below. a. General Liability Coverage Part Each Occurrence $0 b. Wrongful Act Liability Coverage Part Each Wrongful Act $250 C. Miscellaneous Professional Liability Each Wrongful Act $250 d. Automobile Liability Coverage Part Each Accident See schedule e. Uninsured/Underinsured Motorist Coverage Property Damage Each Accident $100/$300 Bodily Injury Each Accident $0 f. Employee Benefits Liability Coverage Part Each Employee Benefits Incident $0 g. Stop Gap Employer's Liability Each Accident $0 h. Sexual Abuse Liability Each Sexual Abuse $0 i. Law Enforcement Liability Each Occurrence EXCLUDED Each Accident EXCLUDED Item 3. Limit of Coverage: The Sublimits of Coverage shown below do not increase the overall Limits listed for Liability Coverages.Aggregate limits are subject to shared excess limits,which may be reduced by prior claims. a. General Liability Limit Each Occurrence $10,000,000 Annual Aggregate $20,000,000 Group Aggregate $50,000,000 Sublimits: Products and Completed Liability Sublimit Each Occurrence $10,000,000 Annual Aggregate $20,000,000 Leased/Rented Premises Liability Sublimit Each Occurrence and Annual Aggregate $1,000,000 Garage Liability Sublimit Each Occurrence and Annual Aggregate $10,000,000 Sewer Back-up Sublimit Each Occurrence and Annual Aggregate $2,000,000 Failure to Supply Sublimit Each Occurrence and Annual Aggregate $2,000,000 Unmanned Aircraft Liability Sublimit* Each Occurrence and Annual Aggregate $10,000,000 *Unmanned Aircraft—under 30 lbs.total weight and FAA Compliant Stop Gap Employer's Liability Sublimit Each Accident $10,000,000 Annual Aggregate $20,000,000 Employee Benefit Liability Sublimit Each Employee Benefits Incident $10,000,000 Annual Aggregate $20,000,000 Sexual Abuse Liability Sublimit Each Sexual Abuse $10,000,000 Annual Aggregate $10,000,000 Group Aggregate $30,000,000 CIAW Renewal Summary 2023-2024 Page 4 Coverage#:CIAW232434619 Covered Member:Aero-Skagit Emergency Services Law Enforcement Liability Sublimit Each Occurrence EXCLUDED Each Accident EXCLUDED Annual Aggregate EXCLUDED Traumatic Event Response Coverage: Crisis Expense Sublimit Each Traumatic Event $100,000 Crisis Property Improvements Sublimit Each Traumatic Event Included Group Aggregate $300,000 b. Wrongful Act Liability Limit Each Wrongful Act $10,000,000 Annual Aggregate $10,000,000 Group Aggregate $50,000,000 Sublimits: Miscellaneous Professional Liability Sublimit Each Wrongful Act $10,000,000 C. Automobile Liability Limit Each Accident $10,000,000 Sublimits: Limited Garagekeepers Sublimit Each Accident $1,000,000 Uninsured/Underinsured Motorist Sublimit Each Accident $1,000,000 d. Defense Costs(all liabilities) Each Occurrence/ Each Wrongful Act $2,000,000 Item 4. Retroactive Date: Wrongful Act Liability—Primary $10,000,000 09/01/1991 Miscellaneous Professional Liability—Primary $10,000,000 09/01/1991 Employee Benefit Liability—Primary $10,000,000 09/01/1991 Item 5. Participating Carriers: Automobile Liability: Pennsylvania Manufacturers'Association Insurance Company(Old Republic) (A+XV)Admitted Wrongful Act Liability: Pennsylvania Manufacturers'Association Insurance Company(Old Republic)(A+XV)Admitted General Liability: Pennsylvania Manufacturers'Association Insurance Company(Old Republic)(A+XV)Admitted CIAW Renewal Summary 2023-2024 Page 5 Coverage#:CIAW232434619 Covered Member:Aero-Skagit Emergency Services RENEWAL SUMMARY CRIME COVERAGE PART Item 1. CIAW Program Retention: Crime Coverage Part Each Occurrence $25,000 Item 2. Deductible: The CIAW Program Retention listed above is in addition to the deductibles listed below. Employee Theft Each Occurrence $250 Forgery or Alteration Each Occurrence $1,000 Money and Securities Inside/Outside Each Occurrence $1,000 Computer Fraud Each Occurrence $1,000 Funds Transfer Fraud Each Occurrence EXCLUDED Money Orders Counterfeit Paper Currency Each Occurrence EXCLUDED Item 3. Limit of Coverage: Crime Coverage Part Each Occurrence $1,000,000 and Annual Aggregate The Sublimits of Coverage shown below do not increase the overall Limits listed above. Coverage Agreements Sublimits of Coverage Employee Theft-Per Loss Coverage $1,000,000 Employee Theft-Per Employee Coverage EXCLUDED Forgery or Alteration $1,000,000 Inside the Premises-Money and Securities $250,000 Inside the Premises- Robbery or Safe Burglary $250,000 of Other Property Outside the Premises-Money and Securities $250,000 Computer Fraud $250,000 Funds Transfer Fraud EXCLUDED Money Orders Counterfeit Paper Currency EXCLUDED Faithful Performance Included in Employee Theft sublimit Item 4. Participating Carriers: Pennsylvania Manufacturers'Association Insurance Company(Old Republic) (A+XV)Admitted CIAW Renewal Summary 2023-2024 Page 6 Coverage#: CIAW232434619 Covered Member:Aero-Skagit Emergency Services RENEWAL SUMMARY EQUIPMENT BREAKDOWN COVERAGE PART Item 1. CIAW Program Retention: Equipment Breakdown Coverage Part "One Accident" $0 Combined,All Coverages All Motors and Pumps $25,000 Item 2. Deductible: The deductibles listed below are part of and not in addition to the CIAW Program Retention listed above. Equipment Breakdown Coverage Part: Equipment Breakdown: "One Accident' $500 Combined,All Coverages All Motors and Pumps(All Member Deductible): $10,000 Item 3. Limit of Coverage: Equipment Breakdown Coverage Part One Accident and Group Aggregate $100,000,000 Item 4. Sublimits of Coverage: The Sublimits of Coverage shown below do not increase the overall Limits listed above. Property Damage: Included Business Income: Included Extra Expense: Included Service Interruption: Included Perishable Goods: $500,000 Data Restoration: $100,000 Computer Equipment: Included Off Premises Property Damage: Excluded Contingent Business Income: Included Demolition and ICC: 25%of building or tenant's improvements or betterments value Ordinance or Law: 25%of building or tenant's improvements or betterments value Expediting Expenses: Included CFC Refrigerants Included Hazardous Substances: $5,000,000 Extended Period of Restoration: 30 days Newly Acquired Locations: Included; 365 days Interruption of Service Waiting Period: 24 hours Item 5. Participating Carriers: Hartford Steam Boiler Inspection and Insurance Company of Connecticut (A++X)Admitted CIAW Renewal Summary 2023-2024 Page 7 Coverage#:CIAW232434619 Covered Member:Aero-Skagit Emergency Services RENEWAL SUMMARY CYBER LIABILITY Item 1. CIAW Program Retention: Cyber Insurance $50,000 Per Claim I Occurrence Item 2. Deductible: The deductibles listed below are part of and not in addition to the CIAW Program Retention listed above. All Coverages $10,000 per Claim Except: Loss of Business Income $10,000 and 10 Hours waiting period Reputational Harm Expense 12 Hours waiting period Item 3. Limit of Coverage: Member Annual Policy Aggregate $5,000,000 Group Combined Policy Aggregate $10,000,000 Item 4. Sublimits of Coverage: Sublimits of Coverage shown below do not increase the overall Limits listed above.Aggregate limits are subject to shared excess limits,which may be reduced by prior claims. a. Liability Costs Per Claim and Aggregate $5,000,000 b. PCI Costs Per Claim and Aggregate $5,000,000 c. Regulatory Costs Per Claim and Aggregate $5,000,000 d. Media Liability Endorsement Per Claim and Aggregate $5,000,000 e. Business Interruption Loss Each Occurrence (Including Extra Expense& Voluntary Shutdown) and Aggregate $5,000,000 f. System Failure Business Interruption Loss Each Occurrence (Including Extra Expense&Voluntary Shutdown) and Aggregate $5,000,000 g. Contingent Business Interruption Loss Each Occurrence (Including Extra Expense) and Aggregate $5,000,000 h. System Failure Contingent Business Interruption Loss Each Occurrence (Including Extra Expense) and Aggregate $5,000,000 i. Data Restoration Each Occurrence and Aggregate $5,000,000 j. Extortion Costs(with MFA) Each Occurrence and Aggregate $5,000,000 Extortion Costs(no MFA) Each Occurrence and Aggregate $500,000 k. Breach Fund Each Occurrence and Aggregate $5,000,000 I. Cyber Crime Loss Each Occurrence (Includes Social Engineering Financial Fraud) and Group Aggregate $250,000 m. Bricking Costs Each Occurrence $1,000,000 Group Aggregate $5,000,000 n. Reputational Harm Expense Each Occurrence $1,000,000 Group Aggregate $5,000,000 o. Business Impersonation Costs Per Claim and Aggregate $5,000,000 p. Criminal Rewards Costs Per Claim and Group Aggregate $100,000 q. Utility Fraud Attack Endorsement Per Claim and Group Aggregate $100,000 CIAW Renewal Summary 2023-2024 Page 8 Coverage#: CIAW232434619 Covered Member:Aero-Skagit Emergency Services Item 5. Retro Active Date: (Coverages a., b., c.,and d. above) Full Prior Acts Item 6. Participating Carriers: Obsidian Specialty Insurance Company (A-VII)Non-Admitted Primary$5,000,000 Great American Fidelity Insurance Company (A+XV) Non-Admitted $5,000,000 excess of$5,000,000 CIAW Renewal Summary 2023-2024 Page 9 Issue Date:11/21/2023 Cart#:0000000319 CITIES INSURANCE ASSOCIATION OF WASHINGTON CERTIFICATE OF COVERAGE THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE MEMORANDUM OF COVERAGE(MOC)BELOW.THIS CERTIFICATE OF COVERAGE 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 COVERED PARTY,THE MOC MUST BE ENDORSED.IF SUBROGATION IS WAIVED,SUBJECT TO THE TERMS AND CONDITIONS OF THE MOC,CERTAIN COVERAGE MAY REQUIRE AN ENDORSEMENT.A STATEMENT ON THIS CERTIFICATE DOES NOT CONFER RIGHTS TO THE CERTIFICATE HOLDER IN LIEU OF SUCH ENDORSEMENT(S). PRODUCER COMPANIES AFFORDING COVERAGE Clear Risk Solutions GENERAL LIABILITY 451 Diamond Drive CIAW/Old Republic Specialty Insurance Underwriters Ephrata,WA 98823 AUTOMOBILE LIABILITY Phone:(509)754-2027 Fax:(509)754-3406 CIAW/Old Republic Specialty Insurance Underwriters COVERED MEMBER PROPERTY CIAW/Old Republic Specialty Insurance Underwriters at al. City M Sedrtcalf Street y CRIME/PUBLIC EMPLOYEE DISHONESTY Sed Metcalf Street CIAW/Old Republic Specialty Insurance Underwriters Sedro-Woolley,WA 98284 COVERAGES THIS IS TO CERTIFY THAT THE COVERAGES LISTED BELOW HAVE BEEN ISSUED TO THE COVERED MEMBER NAMED ABOVE FOR THE COVERAGE PERIOD INDICATED, NOT WITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE COVERAGE AFFORDED BY THE MOC DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH MOC. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF COVERAGE MOC NUMBER MOC EFF MOC EXP DESCRIPTION LIMITS DATE DATE GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CIAW232434560 12/l/2023 12/l/2024 GENERAL AGGREGATE $20,000,000 OCCURRENCE FORM PRODUCT-CO MP/OP AGG $20,000,000 PERSONAL&ADV.INJURY $10,000,000 INCLUDES STOP GAP EACH OCCURRENCE $10,000,000 (LIABILITY IS SUBJECT TO A$750,000 SIR PAYABLE FROM PROGRAM FUNDS) ANNUAL PROGRAM AGGREGATE $50,000,000 AUTOMOBILE LIABILITY ANY AUTO CIAW232434560 12/l/2023 12/1/2024 COMBINED SINGLE LIMIT $10,000,000 (LIABILITY IS SUBJECT TO A$750,000 SIR PAYABLE FROM PROGRAM FUNDS) ANNUAL PROGRAM AGGREGATE NONE PROPERTY CIAW232434560 12/l/2023 12/l/2024 ALL RISK PER OCC EXCL EQ&FL $100,000,000 EARTHQUAKE PER OCC $15.000,000 FLOOD PER OCC*ceptFZA&v,which is $15,000,000 $1 MM) (PROPERTY IS SUBJECT TO A$750,000 SIR PAYABLE FROM PROGRAM FUNDS) ANNUAL PROGRAM AGGREGATE NONE CRONEIPUBLIC EMPLOYEE DISHONESTY CIAW232434560 12/l/2023 1211/2024 PER LOSS $1,000,000 (CRIME IS SUBJECT TO A$25,000 SIR PAYABLE FROM PROGRAM FUNDS) DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS Evidence of Coverage. CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED COVERAGE BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE MOC PROVISIONS. CERTIFICATE HOLDER AUTHORIZED REPRESENTATIVE Its elected officials,officers and employees Skagit County 1800 Continental PI Ste 200 Mount Vernon,WA 98273 CIAW 2023-2024 Pagel Self-insured Coverage Document # CT�2024 wA Insurance Authority WCIA Coverage Document#CT 2024 Page 2 WASHINGTON CITIES INSURANCE AUTHORITY Self-Insured Coverage Document CT-2024 January 1,2024 to January 1,2025 12:01 am Pacific Standard Time LIMITS/ULTIMATE NET LOSS: SELF-INSURED LAYER LIMIT: $4,000,000 PER OCCURRENCE REINSURED LAYER GEM: $6,000,000 PER OCCURRENCE REINSURED LAYER Safety National: $5,000,000 PER OCCURRENCE AND $25,000,000 all lines of business POOL AGGREGATE $5,000,000 General Liability per occurrence and $5,000,000 aggregate per member $5,000,000 Auto Liability per occurrence $5,000,000 Employee Benefits per occurrence and $5,000,000 aggregate per member $5,000,000 Errors or Omissions liability per occurrence and$5,000,000 aggregate per member $5,000,000 Employment Practices Liability per occurrence and$5,000,000 aggregate per member $5,000,000 Police Professional Liability per occurrence and$5,000,000 aggregate per member $5,000,000 Stop Gap Coverage per occurrence and$5,000,000 per member $5,000,000 Prior Wrongful Acts per occurrence and $5,000,000 aggregate per member REINSURED LAYER Allied World Assurance Company: $5,000,000 PER OCCURRENCE AND$5,000,000 AGGREGATE PER MEMBER and $25,000,000 POOL AGGREGATE TOTAL LIMIT: $20,000,000 PER OCCURRENCE,subject to aggregates and sub-limits below and in Section I.D,and Section I.E in the WCIA Joint Protection Program. SPECIFIC AGGREGATE LIMITS/SUB-LIMITS: $4,000,000 per occurrence limit and$4,000,000 annual aggregate per member applying to Terrorism. $5,000,000 per occurrence limit and$5,000,000 annual aggregate limit per member for Errors or Omissions Coverage arising out of the operations,ownership,maintenance or use of any airport. $5,000,000 per occurrence limit and$5,000,000 annual aggregate limit per member for any liability arising out of Land-Use Planning and Land-Use Regulation,zoning,and any other land use and permitting process. $10,000,000 per occurrence per member for any loss,liability cost,damage,expense,fine or penalty of any insured resulting from or arising out of or related to directly or indirectly or in whole or in part to property damage or bodily injury caused by the gradual or sudden"Subsidence"of the earth. DESCRIPTION OF COVERAGE: General Liability,Automobile Liability,Stop-Gap Coverage, Errors or Omissions Liability, Employee Benefits Liability,Employment Practices Liability, Prior Wrongful Acts,and Police Professional Liability Coverage. WCIA Coverage Document#CT-2024 Paae 3 LIMITS OF LIABILITY FOR ALL COVERAGE: The Limits/Ultimate Net Loss stated herein and the rules below set the maximum the Authority will pay regardless of the number of: a. members, b. claims made or lawsuits brought, or C. persons or organizations making claims or bringing lawsuits. TERRITORY: This coverage applies to General Liability,Automobile Liability, Stop-Gap Coverage, Errors or Omissions Liability, Employee Benefit Liability, Employment Practices Liability, Prior Wrongful Acts,and Police Professional Liability coverage occurring anywhere in the United States of America, its territories and possessions or Canada. Members covered by this agreement include the following and new members approved by the Executive Committee during the Coverage Year;members of the Large Deductible Program have their deductible levels listed by their names: WCIA Coverage Document#CT 2024 Pane 4 Aberdeen Lake Stevens Anacortes Lake Stevens Sewer District Arlington Lakewood Auburn Leavenworth Bainbridge Island Liberty Lake Battle Ground Long Beach Benton City Longview Bonney Lake LOTT Clean Water Alliance Bothell Lynden Bremerton Lynnwood($50,000) Brewster Mabton Brier Maple Valley Burien Marysville Fire District Burlington Mason County Emergency Communications Camas (MACECOM) Cashmere Mattawa Centralia McCleary Chehalis Medical Lake Chelan Medina Cheney Mercer Island Clark Regional Emergency Services Agency(CRESA) Metropolitan Park District of Tacoma($25,000) Clarkston Mill Creek Cle Elum(excluding any liability arising out of Land- Millwood Use Planning and Land-Use Regulation,zoning, Milton and any other land use and permitting process per Monroe Executive Committee motion passed on Monroe Transportation Benefit District 10/13/2023. Effective 1/1/2024-2/8/2024.) Moses Lake($25,000) Clyde Hill Mount Vernon College Place Mountlake Terrace Coupeville Mukilteo Covington Multi Agency Communications Center(MACC 911) Cowlitz 911 Newcastle Cowlitz-Wahkiakum Council of Governments NORCOM Des Moines Normandy Park Des Moines Pool Metropolitan Park District Normandy Park Metropolitan Park District Duvall North Bonneville Eastside Public Safety Communications Agency Northshore Park and Recreation Service Area (EPSCA) Northshore Utility District eCity Gov Alliance Oak Harbor Edgewood Ocean Shores Edmonds Olympia Ellensburg Olympia Metropolitan Park District Elma Olympic View Water and Sewer District Enumclaw Orting Everson Othello Federal Way Pasco Ferndale Port Angeles($50,000) Fife Port Townsend George Poulsbo Goldendale Pullman Grandview Pullman Metropolitan Park District Grays Harbor Communications Center, E9-1-1 Pullman-Moscow Regional Airport Board Hoquiam Puyallup($100,000) Issaquah Regional Crisis Response Agency Jefferson County 911 Richland Kelso Ridgefield Kenmore Royal City Kennewick Sammamish Kirkland Seattle Southside Regional Tourism Authority Kitsap 911 Public Authority Selah La Conner Sequim Lacey Shelton Lake Forest Park Shelton Metropolitan Paris District WCIA Coverage Document#CT-2024 Page 5 Shoreline Tukwila Pool Metropolitan Park District Silver Lake Water&Sewer District Tumwater Skagit 911 Tumwater Metropolitan Park District Skagit Council of Governments Union Gap Snohomish University Place Snohomish County 911 Valley Communications Center Snohomish Regional Fire and Rescue Valley Regional Fire Authority Snoqualmie Walla Walla Soap Lake Walla Walla Valley Metropolitan Planning Organization South Correctional Entity(SCORE) Warden South Sound 911 Washington Cities Insurance Authority Spokane Regional Emergency Communications Washington Multi-City Business License and Tax Spokane Valley Portal Agency Stanwood Washougal Steilacoom Water Operating Board Stevenson Wenatchee Sumas West Richland Sumner Westport Sunnyside WHITCOM 911 Three Rivers Regional Wastewater Authority William Shore Memorial Pool District Thurston 9-1-1 Communications Woodinville PUD#1-Thurston County(Thurston Public Utility Woodway District) Yakima Valley Conference of Governments Thurston Regional Planning Council(TRPC) Yarrow Point Toppenish Zillah Tukwila($25,000) This document is not an insurance policy. The Washington Cities Insurance Authority(Authority) is not an insurance company. This document is an agreement by and between the Authority and its members to pay all covered losses subject to the limits and other terms,exclusions and conditions of this Agreement and any addenda attached. This document is to be construed and enforced under the law of the State of Washington. In consideration of the assessments paid by the members,this Agreement provides the following coverages: I. COVERAGE AGREEMENTS A. GENERAL&AUTOMOBILE LIABILITY COVERAGE 1. Coverage In consideration of the assessment herein provided,the Authority hereby agrees,subject to the limitations,terms, exclusions and conditions hereinafter mentioned,to pay on behalf of the member all sums which the member shall be obligated to pay by reason of liability: a. imposed upon the member by law; or b. assumed under contract or agreement by the member and/or any officer,director, official, or employee of the member,while acting in his or her capacity as such; c. for damages,direct or consequential and expenses,all as more fully defined by the term"ultimate net loss"on account of: i. personal injury, ii. property damage, iii. advertising liability, caused by or arising out of an occurrence during the coverage period.The coverage for the liability assumed under contract in I.A. 1. b. above shall be limited to the terms, conditions, limitations and exclusions in the Coverage Document and the Liability Joint Protection Program document. "Damages"as used in this section and this Agreement,do not include punitive or exemplary damages or fines or penalties or any similar relief awarded against the member. WCIA Coverage Document#CT 2024 Page 6 2. Defense and Settlement of Covered Claims Subject to the limits and other terms, exclusions and conditions of this Agreement,for any claim covered by this Agreement and properly tendered to the Authority,the Authority shall have the absolute and unrestricted right and duty to select legal counsel to defend the member against the claim and pay the costs of the selected defense counsel and;further,shall have the absolute and unrestricted right to settle any covered claim within the limits of the provided coverage. The Authority shall have no obligation or duty to pay for the defense costs of a member for any uncovered or excluded claim. Notwithstanding the forgoing,the Authority shall not be obligated to defend any criminal investigation, criminal proceeding or prosecution against any member. 3. Exclusions This Agreement is subject to the following exclusions: This Agreement shall not apply to any claims against any member: a. Regarding any obligation for which the member or any carrier as insurer may be held liable under any Workers'Compensation, unemployment compensation or disability benefits law,or under any similar law; i. with respect to liability arising out of bodily injury to Law Enforcement Officers and Fire Fighters employed by the member it is agreed that exclusion (a)above is deleted and the following substituted therefore: this Agreement does not apply to personal injury of any employee arising out of and in the course of their employment by the member to the extent that benefits for such personal injury are either payable or required to be provided under the"Washington Law Enforcement Officers and Fire Fighters'Retirement System Act." b. For personal injury to or sickness,disease or death of any employee of the member arising out of and in the course of their employment by the member. c. For any liability arising from providing or failing to provide health care or otherwise subject to RCW 7.70. However,this exclusion shall not apply to paramedics, physical therapists,or community responders facilitating access to health and human services; and does not apply to first responders administering opioid antagonists pursuant to RCW 69.41 or in rendering first aid treatment. The term"physical therapists"shall include any member who is providing physical therapy service to another member and who is subject to RCW 18.74. "Community responders"shall include qualified employees who engage in crisis intervention and/or assist members of the public who have behavioral health,substance abuse, housing,or other social services needs with obtaining resources. "First responder'is defined as any career or volunteer firefighter,law enforcement officer, or paramedic as defined in RCW 18.71.200,or emergency medical technician as defined in RCW 18.73.030. Furthermore,this exclusion shall not apply to the legal drawing of blood samples from criminal suspects for evidence in criminal investigations by police personnel currently certified by the Washington State Department of Health as Phlebotomists under RCW 18.360. d. For advertising activities, including claims made against any member for: i. failure of performance of contract,but this shall not relate to claims for unauthorized appropriation of ideas based upon alleged breach of an implied contract; ii. infringement of registered trade mark,service mark or trade name by use thereof as the registered trade mark,service mark or trade name of goods or services sold,offered for sale or advertised,but this shall not relate to titles or slogans; iii. incorrect description of any article or commodity;or iv. mistake in advertised price. WCIA Coverage Document#CT-2024 Page 7 e. For: i. contamination of any environment by pollutants that are introduced at any time,anywhere, in any way; ii. any bodily injury,personal injury, property damage, costs or other loss or damage arising out of such contamination, including but not limited to,cleaning upon, remedying or detoxifying such contamination;or iii, the payment of sums related to(1)the investigation or defense of any loss, injury or damage or (2)payment of any cost,fine or penalty or(3)payment of any expense involving a claim or suit related to i or ii above. As used in this Exclusion,the following terms will have the following meanings: (1) "Contamination"means any unclean or unsafe or damaging or injurious or unhealthful condition arising out of the presence of pollutants,whether permanent or transient in any environment. (2) "Environment"includes any person,any man-made object or feature,animals, crops and vegetation, land,bodies of water, underground water or water table supplies, air and any other feature of the earth or its atmosphere,whether or not altered,developed or cultivated, including but not limited to any of the above,currently or formerly owned, controlled, leased, used or occupied by the member. (3) "Pollutants"means smoke,vapors,soot,fumes, acids,sound, alkalis,chemicals, liquids, solids,gases,thermal pollutants,waste materials and all other irritants, poisons or contaminants including but not limited to any Perfluoroalkyl or Polyfluoroalkyl Substances (PFAS). However,the pollution exclusion as stated above in section 3e(i),(ii),(iii)does not apply to liability from an"Occurrence"causing"Personal Injury"or"Property Damage"when the cause is: (1) the release, discharge or backup of liquids and/or effluents from waste water and/or sanitary sewer lines owned, leased, maintained or operated by a"member". or (2) the release of fuels,lubricants,fluids or similar materials required for the normal mechanical, electrical or hydraulic functioning of an"Automobile"and the materials are accidently released directly from an"automobile"part designed by its manufacturer that has failed or been damaged. f. For personal injury or property damage due to war, whether or not declared,civil war,insurrection, rebellion or revolution or to any act or condition incident to any of the foregoing,with respect to liability assumed by the member under contract. g. For personal injury or property damage arising out of the ownership, maintenance,operation, use, loading or unloading of: i. any aircraft owned or operated by any member,- ii. any other aircraft operated by any person in the course of his/her employment by any member; iii. any aircraft in the care,custody or control of the member for storage, servicing or fueling; or iv. any watercraft over 30 feet. Exclusion 3(g)(i.)does not apply to authorized use of unmanned aircraft under remote control or unmanned helicopters under remote control-while used in the scope of the members business and if the aircraft weighs less than 55 pounds. WCIA Coverage Document#CT 2024 Page 8 h. For any liability or claim alleging, arising out of,based upon or attributable to the refusal,failure, or inability of any member to pay wages, provide benefits, make pension or retirement payments, pay overtime wages,minimum wages,back pay and interest thereon or any other form of compensation legally owed an employee per a contract, collective bargaining agreement, resolution, law,statute or regulation of the State of Washington and/or of the United States of America. This exclusion applies to but, is not limited to: i. any wage or compensation order or award resulting from a labor grievance arbitration, civil service commission hearing or appeal from either; ii. any claim alleging violation of the Employee Retirement Income Security Act of 1974,the Fair Labor Standards Act(except the Equal Pay Act),the National Labor Relations Act,the Worker Adjustment and Retaining Notification Act,the Consolidated Omnibus Budget Reconciliation Act,the Occupational Safety and Health Act and any rules or regulation of the foregoing acts promulgated thereunder or amendments thereto and/or any similar provisions of any federal state or local statute,common law, regulation or ordinance. This exclusion shall not apply to any court entered judgment against a member on a claim for damages when the court determines that back pay and interest thereon to be a part of a prevailing party's compensatory damages for which they are entitled to a judgment. i. For property damage to premises alienated by the member arising out of such premises or any part thereof. j. For loss of use of tangible property which has not been physically injured or destroyed resulting from: i. a delay in or lack of performance by or on behalf of the member of any contract or agreement; or, ii. the failure of the member's products or work performed by or on behalf of the member to meet the level of performance,quality, fitness or durability warranted or represented by the member; but this exclusion does not apply to loss of use of other tangible property resulting from the sudden and accidental physical injury to or destruction of the member's products or work performed by or on behalf of the member after such products or work have been put to use by any person or organization other than a member. k. For property damage to the member's products arising out of such products or any part of such products. I. For property damage to work performed by or on behalf of the member arising out of the work or any portion thereof,or out of materials,parts or equipment furnished in connection therewith. m. For damages claimed for the withdrawal, inspection,repair,replacement,or loss of use of the member's products or work completed by or for the member or of any property of which such products or work form a part, if such products,work or property are withdrawn from the market or from use because of any known or suspected defect or deficiency therein. n. For any liability arising out of or in any way connected with the operation of the principles of eminent domain, condemnation proceedings, or inverse condemnation, by whatever name called, whether such liability accrues directly against the member or by virtue of any agreement entered into by or on behalf of the member. o. For any liability arising out of the operations, ownership,maintenance or use of any airport. p. For any liability arising out of ownership,operation, maintenance or use of any transit district, or transit department buses,or other transit district or transit department automobiles, including loading and unloading thereof; however,this exclusion does not apply to liability arising out of transit district or transit department buses chartered by a member in respect to special events. q. For any liability assumed by the member under any contract or agreement or arising out of the member's failure to perform,failure to pay or default on any contract or agreement. This exclusion 1NCIA Coveraoe Document#CT-2024 Paae 9 would not apply to contracts or agreements to hold harmless or indemnify another person or entity as contemplated by Section A.1.b.of the General&Automobile Liability Coverage. r. For any liability for fines, penalties, punitive or exemplary damages awarded against a member for any reason. s. For any liability arising out of the failure to adequately supply, interruption or impairment of electrical,gas,water, or sewer service. t. For nuclear energy liability as further described below: i. This Agreement does not apply: (1) Under any Liability Coverage,to personal injury or property damage: (a) with respect to which a member is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada,or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability;or, (b) resulting from the hazardous properties of nuclear material and with respect to which: (i) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; or, (ii) the member is, or had this Agreement not been issued would be,entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. (2) Under any medical payments coverage, or under any supplementary payments provision relating to first aid,to expenses incurred with respect to bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. (3) Under any Liability Coverage,to bodily injury or property damage resulting from the hazardous properties of nuclear material, if, (a) the nuclear material: (i) is at any nuclear facility owned by,or operated by or on behalf of,a member; or (ii) has been discharged or dispersed there from; (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed,stored,transported or disposed of by or on behalf of a member;or, (c) the bodily injury of property damage arises out of the furnishing by a member of services, materials, parts or equipment in connection with the planning, construction, maintenance,operation or use of any nuclear facility,but if such facility is located within the United States of America, its territories or possessions of Canada,this exclusion (3)applies only to property damage to such nuclear facility and any property there at. ii. As used in this exclusion: (1) "hazardous properties"include radioactive toxic or explosive properties. (2) "nuclear material'means source material,special nuclear material or by-product material. (3) "source material,""special nuclear material'and"by-product material'have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof. WCIA Coverage Document#CT-2024 Page 10 (4) "spent fuel'means any fuel element or fuel component,solid or liquid,which has been used or exposed to radiation in a nuclear reactor. (5) "waste"means any waste material: (a) containing by-product material other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content; and, (b) resulting from the operation by any person or organization of any nuclear facility included under the first two paragraphs of the definition of nuclear facility. (6) "nuclear facility"means: (a) any nuclear reactor. (b) any equipment or device designed or used for: (i) separating the isotopes of uranium or plutonium, (ii) processing or utilizing spent fuel,or, (iii) handling,processing or packaging waste. (c) any equipment or device used for the processing,fabricating or alloying of special nuclear material if at any time the total amount of such material in custody of the member at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235. (d) any structure, basin,excavation, premises or place prepared or used for the storage or disposal of waste and includes the site on which any of the foregoing is located,all operations conducted on such site and all premises used for such operations. "Nuclear reactor"means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material. "Property damage"includes all forms of radioactive contamination of property. u. For liability, defense costs,judgments,fines or damages arising out of any Intentional Act and/or any willful or wanton violation of any constitutional right provided in the Washington State Constitution or the United States Constitution, statute,ordinance or regulation of Washington State or the United States of America committed by or with the knowledge or consent of any member, except that any fact pertaining to any one member shall not be imputed to any other member for the purpose of determining the application of this exclusion. v. For any liability,defense costs,fines or damages which arise out of,brought about or contributed to by fraud,dishonesty or bad faith by a member or arising out of the willful violation of a penal code or ordinance committed by or with the knowledge or consent of any member or claims of injury arising out of the acts of fraud committed by or at the direction of the member with affirmative dishonesty or actual intent to deceive or defraud, except that any fact pertaining to any one member shall not be imputed to any other member for the purpose of determining the application of this exclusion. w. For any liability of a member arising in whole or in part,out of any member obtaining remuneration or financial gain to which the member was not legally entitled,except that any fact pertaining to any one member shall not be imputed to any other member for the purposed of determining the application of this exclusion. x. For any property damage or personal injury arising out of subsidence. "Subsidence"means any earth movement, including but not limited to settling,expansion, earth sinking,earth rising or shifting,slipping,falling away,tilting,caving in,eroding,mud flow and any other movement of land WCIA Coverage Document#CT-2024 Page 11 or earth. This exclusion does not apply to property damage or personal injury arising out of subsidence proximately caused by a negligent act or omission of any member. y. For any liability arising out of the rupture,bursting,overtopping,accidental discharge or partial or complete structural failure to any owned dams. "Dams"means any artificial barrier,together with appurtenant works,which: i. Is 25 feet or more in height from the foot of a natural bed of stream or watercourse at the down stream toe of the barrier, or from the lowest elevation of the outside limit of the barrier, if it is not across a stream channel or water course to maximum possible water storage elevation;or, ii. Has water impounding capacity of 50 acre feet or more. z. For any liability or claim arising out of, based upon, resulting from or attributable to the improper administration or collection of any taxes,fees or assessments or any loss that reflects any tax or, tax fee or assessment refund obligation of a member. aa. Arising out of or resulting from: i. Inhaling, ingesting,or prolonged physical exposure to asbestos or goods or products containing asbestos; ii. The use of asbestos in constructing any good,product or structure;or, iii. The removal of asbestos from any good, product or structure; or, iv. The manufacture,sale,transportation,storage or disposal of asbestos or goods or products containing asbestos. ab. To any liability, indemnity,defense or responsibility of any kind arising out of or imposed by Chapter 98(R48)known as the Private Property Regulatory Fairness Act. ac. For any liability, indemnity,or defense arising out of the operations of: i. Any separate non-member legal or administrative entity created in accordance with Chapter 39.34 of the Revised Code of Washington entitled, "Interlocal Cooperation Act",excluding the Authority its employees,officers and members; or, ii. Any local improvement districts and/or taxing districts including but not limited to Fire Protection Districts(RCW Title 52), Port Districts(RCW Title 53), Public Utility Districts(RCW Title 54),Water-Sewer Districts(RCW Title 57), Intercounty Rural Library Districts(RCW 27.12), Irrigation Districts(RCW 87.03), Lake and Beach Management Districts(RCW 36.61), County Roads and Bridges Service Districts(RCW 36.83),and County Park and Recreation Districts(RCW 36.69)excluding any authority members.This exclusion is not applicable to any appointed or elected official of a member while acting in the scope of their lawful duties for or on behalf of a member as a board or commission representative to organizations described in (i)and (ii)above. ad. Any liability, indemnity, consequential damages or defense arising out of or occurring in whole or in part due to: i. a member's criminal actions or conduct that violates any criminal statute,code,ordinance or law; or, ii. a member's willful violation of any civil statute, code, ordinance or law. ae. For any liability arising out of the operations, ownership,maintenance or use of any hospital or alcoholic center. WCIA Coverage Document#CT 2024 Pane 12 "Jail Facilities,"including detoxification units(commonly known as"drunk tanks")are not to be considered as"alcoholic centers." af. For property damage to property owned, leased or rented to the member. ag. For any liability, defense cost or indemnity for any monetary award,consequential damages, penalty,fine,costs, attorney fees or defense costs arising out or occurring, in whole or in part,due to a members violation of the Open Public Meetings Act(RCW 42.30),and/or the Public Records Act(RCW 42.56),or for any claim alleging any of the above. ah. For any liability for or indemnity for the imposition of any monetary fine,penalty or other monetary award for anything other than compensatory damages to an injured party or person and/or any award of attorney fees and costs to a prevailing party seeking a fine, penalty or non-compensatory damages award against a member in any court proceeding, administrative law proceeding or any other lawful tribunal with authority to grant such awards under the laws of the State of Washington and/or the United States of America. ai. For any monetary costs,fees or awards voluntarily incurred by a member or imposed upon member by any lawful order to bring the members property,conduct, practices, laws and/or policies into compliance with any legal requirements mandated by the laws of the State of Washington and/or of the United States of America. This exclusion applies to but, is not limited to, any claim seeking to have a members buildings and facilities made more accessible or accommodating to any disabled person as mandated by the Americans With Disabilities Act of 1992, and as amended, or any similar federal,state or local law, regulation or ordinance. aj. For any claim alleging, arising out of,based upon or attributable to any member's activities or omissions as a trustee or fiduciary as respects any type of employee benefit plan, including any pension,savings or profit sharing plan,medical benefits plan,or to any amounts or benefits due under any fringe benefit program, retirement program, incentive program,medical benefits or insurance program, life and/or disability benefits or insurance program,perquisite program, entitlement program or other benefits owed or allegedly owed to any employee. ak. For any claim alleging, arising out of,based upon or attributable to:the gaining in fact of any profit, remuneration, benefit or advantage to which the member is not legally entitled;the return of any taxes, assessments; penalties,fines or fees;any award of salary,wages,benefits,back pay or earnings except for those awarded as compensatory damages resulting from a covered claim and occurrence. al. For any defense or defense cost for or liability and/or indemnity for any award, order or relief granted in any labor arbitration proceedings,civil service hearings or unfair labor practices proceedings or any other similar employer/employee labor dispute administrative hearing or proceeding initiated against a member under the laws of the State of Washington and/or the United States of America or as provided for in any collective bargaining agreement between a member and any employee bargaining unit or union for any form of grievance resolution. am. For the defense or defense costs for any proceeding before or liability and/or indemnity for any award,judgment,fines, penalties or decision of the Growth Management Hearings Board in and for the State of Washington. an. For any claim by or personal injury and/or property damage to a member arising out of a collision or vehicle accident caused by a non-member who is uninsured or underinsured in amounts insufficient to fully compensate the members loss. This exclusion shall not apply to property damage claims by members for property damage or destruction of member owned vehicles scheduled under separate property insurance provided the member by the Authority. ao. For any claim against a member or a member's officers,officials,employees or volunteers for personal injuries or property damage arising out of, based upon or attributable to their maintenance,use or operation of a privately owned motor vehicle not owned by their employing or appointing public entity member unless the public entity member has given prior express consent for the use of the privately owned motor vehicle by the member's cfficers,officials,employees or volunteers in the course and scope of their conduct of the public entity members business and then only when such use,maintenance or operation of the privately owned motor vehicle is being done in the course and scope of their employment and the conduct of the member's official business. Member employees,officials, officers and volunteers traveling in a privately owned motor vehicle to WCIA Coverage Document#CT-2024 Page 13 and from their location of employment or location where they conduct their business on behalf of the public entity member either before or after their hours of work will not be regarded as acting in the course and scope of their public employment or appointment. ap. For any claim against a member for injury or damage,whether physical or nonphysical and any financial losses of any kind arising out of"Cyber Liability." "Cyber Liability"means injury loss or damage arising out of: i. Any loss damage, liability expense, fines or penalties or any other amount directly or indirectly caused by, based upon, arising from, in consequence of,or related to: (1) the intentional,deliberate, negligent, reckless or accidental use or operation, of any Computer, Computer System, computer software program,malicious code, computer virus or process, Data hostage scheme or attack for ransom, internet or intranet or use of any other electronic device or system including, but not limited to,smart phones, laptop computers,computerized electronic data pads,electronic monitoring devices, blue tooth devices, artificial intelligence devices, scanners, skimmers or electronic switches and security devices as a means of inflicting injury, harm damage or loss; (2) the reduction in or loss of ability to use or operate any Computer System, Computer Network or Data; (3) access to, processing, transmission,storage or use of any Data; (4) inability to access process,transmit,store or use any Data; (5) any threat of or any hoax relating to(1)to(4)above; (6) any error or omission or accident in respect of any Computer System, Computer Network or Data; (7) losses to third parties and persons occurring due to cyber-attacks on a member's Computer System, Computer Network or electronically stored Data such as Data destruction,extortion,theft, loss of money or financial data, hacking and denial of service attacks;or for losses to others caused by errors and omissions,failure to safeguard private Data and/or financial information, or defamation;identity theft and any costs of remedial measures due to Cyber Liability occurrences including regular security audits, post-incident public relations and investigative expenses and criminal reward funds. ii. Computer System means any computer, hardware,software, application process,stored electronic data, cod, program,information technology,communications system or electronic device owned or operated by the member, its agents and/or any other party.This includes any similar system and any associated input, output or Data storage device or system networking equipment or back up facility. iii. Computer Network means a group of Computer Systems, and other electronic devices or network facilities connected via a form of communications technology, including the internet, intranet and virtual private networks(VPN),allowing the networked computing devices to exchange Data. iv. Data means information used,accessed, processed,transmitted or stored by a Computer System. aq. For any liability, defense cost or any other amount incurred by or accruing directly or indirectly and regardless of any other cause contributing concurrently or in any sequence,originating from, WCIA Coverage Document#CT-2024 Page 14 caused by,arising out of, contributed to by, resulting from,or otherwise in connection with a Communicable Disease or the fear or threat(whether actual or perceived)of a Communicable Disease. i. Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: (1) the substance or agent includes, but is not limited to,a virus, bacterium, parasite or other organism or any variation thereof,whether deemed living or not, and (2) the method of transmission,whether direct or indirect, includes but is not limited to, airborne transmission,bodily fluid transmission,transmission from or to any surface or object,solid, liquid or gas or between organisms,and (3) the disease,substance or agent can cause or threaten bodily injury, illness,emotional distress or damage to human health, human welfare or property damage. ar. Any"Claims,"demands or action seeking relief or redress in any form other than money damages, and the Authority shall have no obligation to indemnify the"member"for any costs, legal fees or expenses in connection with any action or otherjudgment for injunctive or declaratory relief. B. STOP-GAP COVERAGE 1. Coverage In consideration of the assessment herein provided, it is agreed that if, under any circumstances,it is determined that any employee of the member who is reported and declared under the Workers' Compensation Law or Laws of the State of Washington is injured in the course of their employment but is not entitled to receive(or elects not to accept)the benefits provided by the aforementioned Law,then this policy shall cover the legal liability of the member for such personal injury, disease, or death and pay on behalf of the member all sums which the member shall become legally obligated to pay as damages and expenses,all as defined by the terms"ultimate net loss"and"occurrence." 2. Exclusions The exclusions applicable to General and Automobile Liability(section I.A.3.)of this agreement also apply to this section except exclusion"o"and exclusion"b." The coverage granted hereunder shall not apply to: a. Personal injury,disease or death suffered or caused by any person knowingly employed by the member in violation of any law as to age or under the age of 14 years regardless of any such law except for persons volunteering for the member; b. any claim recoverable under the insurance provisions of any Workers'Compensation or Occupational Disease Act or Law or under the U.S. Longshore and Harbor Workers'Compensation Act or any other insurance available for the protection of the member; c. Personal injury, disease or death caused by or arising from the use,maintenance, or operation of aircraft; d. any premium assessment, penalty,fine or other obligation imposed by any Workers'Compensation Law; e. any claim for personal injury,disease, or death with respect to which the member is deprived of any defense or defenses or is otherwise subject to penalty because of default in premium payment under,or any other failure to comply with the provisions of the Workers' Compensation Law or Laws of the State above named; f. bodily injury by accident or disease to the master or members of the crew of any vessel. WCIA Coverage Document#CT-2024 Page 15 C. ERRORS OR OMISSIONS LIABILITY COVERAGE 1. Coverage In consideration of the assessment herein provided,the Authority shall pay on behalf of its member all sums which the member shall become legally obligated to pay arising out of any occurrence which results in a claim for damages and expenses,all as more fully defined by the term"ultimate net loss", arising out of any claim for breach of any duty made against the member by reason of any negligent act, wrongful act, error or omission committed by the member during the policy period. 2. Exclusions The exclusions applicable to General and Automobile Liability section I.A. 3. also apply to this section except exclusion"o." Additionally,the Errors and Omissions section does not apply: a. to physical injury to or destruction of tangible property including the loss of use thereof at any time resulting therefrom-, b. liability or responsibility arising out of or imposed by any constitutional provision, statute, county, municipal or local ordinance or law administrative order,or rule of law dealing with the power of eminent domain,condemnation or inverse condemnation,or any acts arising out of or caused by the member(s)thereunder; c. to any dishonest,fraudulent, criminal or malicious act; d. to claims,occurrences or accidents which are covered under any other section of this Agreement; e. to any claims or for any liability arising out of the member(s failure to secure a proper bond or secure payment for any contractor,subcontractor or third person who has performed work or provided materials to the member as part of the performance of any contract for the benefit of the member. D. EMPLOYEE BENEFITS LIABILITY COVERAGE 1. Coverage In consideration of the assessment herein provided,the Authority agrees with the member named in this Agreement as follows: a. The Authority will pay on behalf of the member all sums which the member shall become legally obligated to pay as damages and expenses, all as more fully defined by the term"ultimate net loss",arising out of any claim made against the member by any employee or the beneficiaries or legal representatives thereof for injury arising out of any negligent act, error or omission,during the coverage period,of the member or any other person for whose acts the member is legally liable, in the administration of employee benefits as defined. 2. Definitions a. EMPLOYEE BENEFIT PROGRAM. The term"employee benefit program"shall mean Group Life Insurance, Group Accident or Health Insurance, Pension plans,Workers'Compensation, Unemployment Insurance, Social Security and Disability Benefits, and any other similar benefit program. b. ADMINISTRATION. As respects the coverage afforded hereby,the unqualified word "administration"whenever used shall mean: i. giving counsel to employees with respect to the employee benefits; ii. interpreting employee benefits; iii. handling of records in connection with employee benefits; WCIA Coverage Document#CT-2024 Page 16 iv. affecting enrollment,termination or cancellation of employees under employee benefit programs; v. performed by a person authorized by the member to do such acts. 3. Exclusions The exclusions applicable to General and Automobile Liability section I.A. 3.of this agreement also apply to this section. This Agreement does not apply: a. to any dishonest,fraudulent,criminal or malicious act; b. to libel,slander,discrimination,or humiliation; c. to bodily injury, or sickness, disease, or death of any person; d. to injury to or destruction of any tangible property,including the loss of use thereof; e. to any claim based upon the member's failure to comply with the federal"Employee Retirement Income Security Act of 1974'; f. to any claim for failure or performance of contract by any insurer; g. to any claim based upon the member's failure to comply with any law concerning Workers' Compensation, Unemployment Insurance,Social Security or Disability Benefits. E. EMPLOYMENT PRACTICES LIABILITY COVERAGE 1. Coverage In consideration of the assessment herein provided,the Authority shall pay on behalf of its member all sums which the member shall become legally obligated to pay arising out of any occurrence which results in a claim for damages and expenses,all as more fully defined by the term"ultimate net loss", arising out of any claim for breach of any duty made against the member by reason of any Wrongful Act(s)and/or Employment Practice Violation(s)committed by the member in the performance of its duties as a public employer during the policy period. 2. "Employment Practice Violation(s)"shall mean any of the actual or alleged: a. Wrongful dismissal,discharge or termination(either actual or constructive)of employment including breach of an implied contract; b. Harassment(including sexual harassment whether"quid pro quo,"hostile work environment or otherwise); c. Discrimination, (including but not limited to discrimination based upon age,gender, race,color, national origin, religion, sexual orientation or preference,pregnancy or disability); d. Retaliation; e. Employment-related misrepresentation(s)to an employee or applicant for employment with the Public Entity; f. Wrongful failure to employ or promote; g. Wrongful deprivation of career opportunity,wrongful demotion or negligent employee evaluation, including the giving of negative or defamatory statements in connection with an employee reference; h. Wrongful discipline; WCIA Coverage Document#CT-2024 Page 17 i. Failure to provide or enforce adequate or consistent policies and procedure relating to any Employment Practices Violation; j. Violation of an individual's civil rights relating to any of the above but only if the Employment Practices Violation relates to an employee or applicant for employment with the Public Entity whether direct,indirect, intentional or unintentional; k. Employment related libel, slander, defamation, or invasion of privacy. 3. "Wrongful Act"for purposes of employment practices liability coverage shall mean any actual or alleged breach of duty, neglect,error, misstatement, misleading statement, omission or Employment Practice Violation by a member solely in the performance of its duties as a public governmental entity. 4. Exclusions The exclusions applicable to General and Automobile Liability section I.A. 3.of this agreement also apply to this section except for general exclusion"o." F. PRIOR WRONGFUL ACTS 1. Claims based on wrongful acts that occurred before the effective date of WCIA membership will also be covered, provided that all of the following conditions are met: a. The wrongful act must have occurred within the prior thirty-six(36)month period prior to a member joining WCIA and be reported to WCIA within the next twelve(12)month period; b. The member must not have had prior knowledge of the wrongful act or claim on the effective date of WCIA membership, nor have had any reasonable way to foresee that a claim might be brought; c. The claim must be for a wrongful act that would have been covered by the WCIA Coverage Document in force at the time the claim is presented to WCIA; d. The claim will only be indemnified up to the applicable prior public officials, errors&omissions, employee benefits or employment practices liability insurance or pool coverage,or WCIA liability limits,whichever is less; e. Use of any other available insurance covering the claim excludes the use of WCIA coverage. f. The prior wrongful act was within the course and scope of employment for employees or duties as a public official;and, g. Prior to the expiration of their current insurance coverage and prior to joining WCIA,all potential losses that the member knew about must have been reported to their insurance carrier; h. The thirty-six(36)month prior coverage referenced in paragraph F.a. shall only apply to members who have joined WCIA on or after June 1, 2002. For members who have joined prior to June 1, 2002,the prior coverage shall be twelve(12)months instead of thirty-six(36)months and be subject to all other conditions in F. b., F.d., F.e., F.f., and F.g. 2. Optional Extended Reporting Period A member may, at its option,subject to WCIA approval,purchase an additional extended reporting period of twenty-four(24)months, provided that all the following conditions are met: a. The member requests the additional extended reporting period prior to the memberjoining WCIA; b. The member shall purchase this coverage at a cost determined by an actuary hired by WCIA; c. The conditions applicable in Paragraph F, Prior Wrongful Acts,also apply to this section with the exception of F. 1. a.and F. 1.d; d. The wrongful act must have occurred within the prior thirty-six(36)month period prior to a member joining WCIA and be reported to WCIA within the next thirty-six month period; WCIA Coverage Document#CT-2024 Page 18 e. If the optional extended reporting period is granted,the limit of liability for all prior wrongful acts coverage is$5,000,000 per occurrence and$5,000,000 in the aggregate; f. The member shall have joined WCIA on or after June 1,2002 3. "Wrongful Act" For purposes of errors and omissions liability coverage shall mean any actual or alleged breach of duty, neglect,error,misstatement, misleading statement, omission by a member solely in the performance of its duties as a public governmental entity. G. POLICE PROFESSIONAL LIABILITY 1. In consideration of the assessment herein provided,the Authority shall pay on behalf of its member all sums which the member shall become legally obligated to pay arising out of any occurrence which results in a claim for damages and expenses,all as more fully defined by the term"ultimate net loss", arising out of any claim against a member for a"Law Enforcement Occurrence"that takes place during the policy period. 2. "Law Enforcement Occurrence'shall mean an occurrence as defined in Section Il.Coverage Definitions paragraph E.Occurrence, and results in: a. Personal Injury and which arises out of, and is committed during the course and scope of, "Law Enforcement Activities"; b. Bodily Injury or Property Damage,and which arises out of ownership,maintenance,or use of Premises by the member for conducting Law Enforcement Activities;or c. Bodily Injury or Property Damage,and which results from an actual or alleged act,error or omission, neglect, or breach of duty by a member that arises out of,and is committed during the course and scope of Law Enforcement Activities. 3. "Law enforcement activities"means: a. The administration and enforcement of the criminal justice system or duties performed by a sworn police officer conducted by any member for or on behalf of any member. This also includes"off- duty activities"as defined below; b. "Off-Duty Activities"means departmentally approved, law enforcement-related activities that a member has been contracted to perform for a non-governmental entity. These activities require prior authorization by the member employer; c. Law enforcement assistance rendered by a member pursuant to a member's contract or mutual aid agreement. 4. Exclusions The exclusions applicable to General and Automobile Liability section I.A.3. of this agreement also apply to this section except for general exclusion"o." II. COVERAGE DEFINITIONS This Agreement, in all of its sub-parts is subject to the following definitions: A. MEMBER "Member'includes the Washington Cities Insurance Authority and any member municipal corporation,city, town or municipal entity in the State of Washington. The unqualified word"member"includes: WCIA Coverage Document#CT-2024 Page 19 1. all officials,officers, employees, and volunteers working for or on behalf of the member and any person, organization,trustee or estate to whom or to which the member is obligated by virtue of a written contract to provide insurance to the same extent as is afforded by this Agreement,but only with respect to actions within the scope of their employment by or on behalf of the member; 2. any person serving on the members governing body, any persons serving on the members boards or commissions,any elected or appointed official of the member, any other employee, or any volunteer serving the member; if the person is acting in the scope of their employment,appointment,duties, or service to the member; the term"member"does not include any private for profit businesses or corporations,volunteer organizations or non-profit corporations and/or their officers,officials,or members when acting in or for the interests of and/or at the direction of said business,organization or corporation; 3. any person while using an automobile owned by, leased, rented, or loaned to the member or hired for use on behalf of the member or any person or organization legally responsible for the use thereof, provided the actual use of the automobile is by the member or with the member's permission,and any executive officer,other employee,director or volunteer of the member with respect to the use of an automobile not owned by the member in the business of the member. The coverage with respect to any person or organization other than the member does not apply under this section: a. to any person or organization,or to any agent or employee thereof;operating an automobile sales agency, repair shop,service station,storage garage or public parking place,with respect to any occurrence arising out of the operation thereof; b. with respect to any automobile hired by or loaned to the member,to the owner or a lessee thereof other than the member, or to any agent or employee of such owner or lessee. Independent contractors,contracted attorneys and consultants providing services to the member are not "members' B. PERSONAL INJURY The term"personal injury"means: 1. bodily injury,sickness,disease,disability or shock, including death arising therefrom, medical malpractice injury, including emergency medical treatment and all acts of paramedics and law enforcement personnel, or if arising out of the foregoing, mental anguish and mental injury; 2. false arrest,false imprisonment,wrongful eviction,wrongful detention,or malicious prosecution; or, 3. libel,slander,defamation of character, humiliation or invasion of the rights of privacy, unless arising out of advertising activities; 4. unlawful discrimination not committed by or at the direction of any executive officer of the member, but only with respect to the liability other than fines and penalties imposed by law; 5. false or improper services of process; 6. assault or battery committed for the purpose of protecting persons or property or incident to an arrest; 7. violation of civil rights protected under the United States Constitution and 42 USC 1981et seq. or under any similar state civil rights law. C. PROPERTY DAMAGE The term"property damage"means loss of or direct damage to or destruction of tangible property which occurs during the policy period,including loss of use thereof at any time resulting therefrom and loss of use of tangible property which has not been physically injured or destroyed. D. ADVERTISING LIABILITY The term"advertising liability"means: WCIA Coveraae Document#CT-2024 Pa-ge 20 1. libel,slander or defamation; 2. any infringement of copyright or of title or of slogan; 3. piracy or unfair competition or idea misappropriation under an implied contract; 4. any invasion of right of privacy; committed or alleged to have been committed in any advertisement,publicity article, broadcast or telecast and arising out of the member's advertising activities. E. OCCURRENCE The term"occurrence"means an accident or a happening or event or a continuous or repeated exposure to substantially the same general harmful conditions which unexpectedly and unintentionally result in personal injury,property damage,advertising liability,errors or omissions liability including wrongful acts, police professional liability,employment practices liability including wrongful acts or stop-gap liability during the policy period. All such exposure to substantially the same general conditions existing at or emanating from one location shall be deemed one occurrence. All"Damages"arising out of substantially the same"Personal Injury,""Property Damage,""advertising liability,""errors or omissions liability including wrongful acts,""stop-gap liability,""employment practices liability including wrongful acts,"or"police professional liability" regardless of the frequency,timing, repetition,the number or kind of events or offenses,or the number of"Claimants,"will be considered as arising out of one"Occurrence"and shall be deemed to have occurred on the date of the first"Occurrence" causing"Personal Injury,""Property Damage,""advertising liability,""errors or omissions liability including wrongful acts,""stop-gap liability,""employment practices liability including wrongful acts,"or"police professional liability"during the policy period. Only one Self-Insured Coverage Document issued by WCIA and one limit of coverage is applicable to any one"Occurrence." Further,the definition of occurrence includes any intended act by or at the direction of the member,which results in personal injury, if such injury arises solely from the use of force for the purpose of protecting persons or property or effectuating an arrest. F. ULTIMATE NET LOSS The term"ultimate net loss"means the total sum which the member becomes obligated to pay by reason of liability claims,covered hereunder,either through adjudication or compromise and shall also include hospital, medical and funeral charges and all sums paid as salaries,wages,compensation,fees, charges and law costs, premiums on attachment or appeal bonds, interest expenses for doctors, lawyers, nurses and investigators and other persons, and for litigation,settlement,adjustment and investigation of claims and suits covered hereunder. Ultimate net loss shall include all sums paid as salaries,expense, or costs to lawyers,or a lawyers representative,other than paid employees of the member, and investigators, retained experts or other persons rendering services in handling specific litigation and coverage determination costs over$1,000 per occurrence. Other salaries paid to employees of the member or the company;fees paid to the member's service company for handling claims are excluded from the ultimate net loss. G. SELF-INSURED RETENTION The term"self-insured retention"means the amount of"ultimate net loss"payable by the member in respect of each occurrence. H. WRONGFUL ACT(S) The term"Wrongful Act(s)"means any actual or alleged breach of duty, neglect, misstatement,misleading statement,error or omission or employment practices violation by a member solely in the performance of its duties as a Public Entity. A wrongful act may be a deliberate act that unexpectedly and unintentionally results in personal injury and/or property damage to another not intended by the member. WCIA Coverage Document#CT-2024 Page 21 I. INTENTIONAL ACT(S) The term"Intentional Act(s)"means any deliberate knowing action and/or deliberate knowing refusal to act by a member in violation of a clearly established legal duty and where the foreseeable and/or intended consequence of such deliberate action or deliberate refusal to act causes Personal Injury, Property Damage, advertising liability,errors or omissions liability including wrongful acts,stop-gap liability,employment practices liability including wrongful acts, and/or police professional liability to another person or entity and there is no lawful justification for the members deliberate act or refusal to act. J. CLAIM(S) The term"claim(s)"means a summons and complaint for damages or other similar legal civil pleading filed with a Court of Law and served upon a member alleging that the member is liable for claimant's personal injuries and/or property damage and seeks a court judgment to recover money against a member for such liability. K. PRODUCTS AND COMPLETED OPERATIONS LIABILITY The term"products liability"means: 1. liability arising out of goods or products manufactured,sold, handled or distributed by the member or by others trading under their name if the occurrence occurs after possession of such goods or products has been relinquished to others by the member or by others trading under their name and if such occurrence occurs away from premises owned, rented or controlled by the member;provided such goods or products shall be deemed to include any container thereof,other than a vehicle, but shall not include any vending machine or any property,other than such container, rented to or located for use of others but not sold; 2. The term"completed operations"means liability arising out of operations, if the occurrence occurs after such operations have been completed or abandoned and occurs away from premises owned, rented or controlled by the member,provided operations shall not be deemed incomplete because improperly or defectively performed or because further operations may be required pursuant to an agreement, provided further the following shall not be deemed to be"operations"within the meaning of this paragraph: a. pick-up or delivery,except from or onto a railroad car, b. the maintenance of vehicles owned or used by or in behalf of the member, c. the existence of tools, uninstalled equipment and abandoned or unused materials. L. ANNUAL PERIOD The term"annual period"means each consecutive period of one year commencing from the effective date of this Agreement. M. AIRCRAFT The term"aircraft"means any heavier than air or lighter than air aircraft designed to transport persons or property. N. AUTOMOBILE The term"automobile"means a land motor vehicle,trailer or semi-trailer designed for travel on public roads (including any machinery or apparatus attached thereto), but does not include mobile equipment. WCIA Coverage Document#CT-2024 Paae 22 O. PARAMEDIC The term"paramedic"shall include all personnel who may engage in rendering emergency medical assistance, including but not limited to the categories defined in RCW 18.73 and RCW 18.71.200: "Emergency medical technicians,""Physicians trained mobile intravenous therapy technicians,""Physicians trained mobile airway management technicians,"and"Physicians trained mobile intensive care paramedics," provided that all amendments of RCW 18.73 and RCW 18.71.200 shall here and hereafter be included in the definition of the above categories. P. TERRORISM The term"Terrorism"means activities against persons,organizations or property of any nature: 1. That involve the following preparation for the following: a. Use or threat of force or violence, or, b. Commission or threat of a dangerous act; or, c. Commission or threat of an act that interferes with or disrupts an electronic communication, information or mechanical system; and, 2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy;or, b. It appears that the intent is to intimidate or coerce a government, or to further political ideological, religious,social or economic objectives or to express(or express opposition to)a philosophy or ideology. Q. COMPENSATORY DAMAGES The term"Compensatory Damages"means either personal injury and/or property damage as defined herein resulting from a covered occurrence and represented in the monetary amount of a judgment on a liability claim or lawsuit for personal injury and/or property damage deemed necessary by the court to make the injured party whole from such injuries and damage. III. COVERAGE CONDITIONS This Agreement is subject to the following conditions: A. ASSESSMENT The assessment for this coverage varies from member to member and is set by the Board of Directors of the Authority in accordance with its By-laws and the Joint Protection Program. Coverage under this Agreement is conditioned on and offered in consideration of the assessment being paid by a member in the time, manner,amount and method specified by the Board of Directors, Bylaws and Joint Protection Program of WCIA. B. PRIOR INSURANCE AND NON-CUMULATION OF LIABILITY It is agreed that if any loss is covered in whole or in part under any primary or excess insurance policy issued to the member prior to the effective date hereof(but not coverage provided by the Authority),the limit of liability hereunder shall be reduced by any amounts due to the member on account of such loss under such prior insurance. Subject to the foregoing and to all the other terms and conditions of this Agreement in the event that personal injury or property damage arising out of an occurrence covered hereunder is continuing at the time of termination of this Agreement,the Authority will continue to protect the member for liability in respect of such personal injury or property damage without payment of additional assessment. WCIA Coverage Document#CT-2024 Page 23 C. INSPECTION AND AUDIT The Authority shall be permitted to examine and audit the member's books and records at any time during the coverage period and any extension thereof and within three(3)years after the final termination of this Agreement, as far as they relate to the assessment bases or the subject matter of this coverage. D. CROSS LIABILITY This Agreement shall protect each member in the same manner as though a separate Agreement had been issued to each,except that nothing herein shall operate to increase the Authority's liability beyond the amount or amounts for which the Authority would have been liable had only one member been named. E. NOTICE OF OCCURRENCE Whenever the authorized representatives of the member have information from which the member may reasonably conclude that an occurrence covered hereunder involves injuries or damages which, in the event that the member should be held liable,is likely to involve this coverage, notice shall be sent to the Authority as soon as practicable. However, immediate written notice shall be given to the Authority when any injury of the following type occurs: 1. a fatality or death of a person in police custody, 2. amputation of a major extremity, including any loss of eye(s)or limb(s), 3. any serious head injury(including skull fracture or loss of sight of either or both eyes) or brain injury, 4. any injury to the spinal cord, including any paralysis, paraplegia,quadriplegia, 5. any disability of more than one(1)year or where it appears reasonably likely that there will be disability of more than one(1)year, 6. any burn 25%or more of the body, 7. heart or vascular disorders, 8. accidents where multiple injuries are involved, 9. acts of employment discrimination and/or harassment involving any employee protected class as defined by any state,federal,or local laws including, but not limited to; race,age,gender, religion, disability or prohibited retaliation, 10. any allegations of sexual abuse or molestation. Such notice shall contain particulars sufficient to identify the member and also reasonably obtainable information respecting the time, place and circumstances of the injury,the names and addresses of the injured and of available witnesses. If suit or other proceeding is brought against the member,the member shall immediately forward to the Authority every demand, notice,summons,or other process or true copies thereof received by the member or the member's representatives,together with copies of reports of investigations made by the member with respect to such claim, suit or proceeding. F. ASSISTANCE AND COOPERATION The member and the Authority shall cooperate in all things in the defense of such claim, suit or proceeding. G. APPEALS In the event the member elects not to appeal a judgment,the Authority may elect to make such appeal at its cost and expense,and shall be liable for the taxable costs and disbursements and interest incidental thereto, but in no event shall the liability of the Authority for ultimate net loss exceed the amount set forth in this Agreement for any one occurrence and in addition the cost and expense of such appeal. WCIA Coverage Document#CT-2024 Page 24 H. BANKRUPTCY AND INSOLVENCY In the event of the bankruptcy or insolvency of the member or any entity comprising the member,the Authority shall not be relieved thereby of the payment of any claims hereunder because of such bankruptcy of insolvency. I. OTHERINSURANCE If valid and collectible insurance,which is written by an insurer(but not coverage provided by the Authority) is available to the member covering a loss also covered by this Agreement, other than insurance that is in excess of this coverage,the coverage afforded by this Agreement shall be in excess of and shall not contribute with such insurance.Valid and collectable insurance includes, but is not limited to,any other primary liability insurance available to the member covering liability for damages arising out of premises or operations,or the products and completed operations,for which the member has been added to as an additional insured by attachment of an endorsement. J. SUBROGATION The Authority shall be subrogated to the extent of any payment hereunder to all the member's rights of recovery thereof(but not to the member's rights against the Authority),and the member shall do nothing after loss to prejudice such right and shall do everything necessary to secure such right. K. CHANGES Notice to or knowledge possessed by any person shall not effect a waiver or change in any part of this Agreement or stop the Authority from asserting any right under the terms of this Agreement; nor shall the terms of this Agreement be waived or changed,except by addenda issued to form a part hereof,signed by the Authority. L. ASSIGNMENT No member may assign any right,claim or interest it may have under this Agreement, and no creditor, assignee or third-party beneficiary of a member shall have any right,claim or interest any member may have under this Agreement. M. CANCELLATION Refer to the language of the Joint Protection Program,Article 8. WCIA Coverage Document#CT-2024 Page 25 CITY OF CLE ELUM EXCLUSION—CERTAIN LAND USE COVERAGE THIS ENDORSEMENT MODIFIES COVERAGE PROVIDED UNDER ALL COVERAGE PARTS. This endorsement changes the 2024 Self-Insured Coverage Document effective on the inception date of the 2024 Self-Insured Coverage Document unless another date is indicated above. How coverage is changed: The following coverage is excluded: Coverage for any and all claims arising from or in any way related to the City Heights Annexation and Development Agreement dated November 11, 2011, including but not limited to any and all claims made by affiliates, predecessors, employees, agents, attorneys, successors, assigns, and/or representatives of City Heights, LLC, and/or any successors in interest to the City Heights Annexation and Development Agreement dated November 11, 2011. Liability Joint Protection Program 2024 WA V E �t, Insurance Authority WCIA 2024 Liability Joint Protection Program Page 2 WASHINGTON CITIES INSURANCE AUTHORITY Liability Joint Protection Program for the Coverage Year January 1,2024 to January 1, 2025 12:01 A.M. Pacific Standard Time I. AUTHORITY LIABILITY COVERAGE A. COVERAGE AGREEMENT The Washington Cities Insurance Authority, (Authority)has been formed to provide its members financial protection from loss, in part,through self-insured and standard insurance coverages as detailed in the Authority's Coverage Document. Coverage consists of two layers;a self-insured layer, and one or more reinsured layers. The Board of Directors determines the coverage limits in each layer and the relative attachment points among the layers, at the beginning of each coverage year. The Board of Directors determines the terms and conditions of coverage for the self-insured layer of coverage. Coverage Document#CT-2024,which further defines the aforementioned coverage, is hereby incorporated by reference and adopted herein to this document. The Board may choose to purchase reinsurance as a layer of coverage,or self-insure that layer. Purchased insurance policies may differ from each other and the self-insured layer in language,exclusions,conditions and underwriters intent. Coverage among the various policies may not be continuous. Annual aggregates may further limit coverage in any of the layers. Elements of what the Authority intends to pay are defined in the Ultimate Net Loss definition within the Coverage Document. For example,the legal defense expense becomes part of the loss cost and contributes towards (erodes)the self insured and reinsurance limits. B. EXCLUSIONS Exclusions of coverage may differ in each of the coverage layers, and are specifically identified by each reinsurance policy or Coverage Document. Policies may differ from each other in the number, language and underwriters intent. For example, previous Board action determined underinsured/uninsured motorist coverage is not provided to members or employees. C. MEMBERS Current,risk-sharing, members are identified in the WCIA Coverage Document#CT-2024. Any non-risk sharing membership does not qualify for the Coverage Document protections. D. COVERAGE LIMITS The Authority uses the insurance layers below to resolve claims and litigation per the terms,conditions and limits of each policy. Self-Insured Layer: $4 million per occurrence Reinsured Layer-GEM: $6 million per occurrence Reinsured Layer-Safety National: $5 million per occurrence Reinsured Layer-Allied World Assurance Company: $5 million per occurrence Total Limit: $20 million per occurrence All limits subject to member and Pool aggregates as outlined in the#CT-2024 WCIA Self-Insured Coverage Document. E. AGGREGATES AND SUB-LIMITS WCIA and the insurance industry use annual aggregates to create limited coverage for certain exposures. A partial list of aggregate limits used in this document are: $4,000,000 per occurrence limit and annual aggregate per member applying to Terrorism. $5,000,000 per occurrence limit and annual aggregate per member applying to Airport Errors and Omissions arising out of the operation, ownership, maintenance or use of any airport. WCIA 2024 Liability Joint Protection Proaram Page 3 $5,000,000 per occurrence limit and$5,000,000 annual aggregate limit per member for any liability arising out of Land-Use Planning and Land-Use Regulation,zoning,and any other development review process. $10,000,000 per occurrence per member for any loss, liability cost, damage,expense,fine or penalty of any insured resulting from or arising out of or related to directly or indirectly or in whole or in part to bodily injury or property damage caused by the gradual or sudden"Subsidence"of the earth. Reinsured Layer-Safety National$5,000,000 per occurrence with various aggregates per coverage and a $25,000,000 Pool aggregate. Reinsured Layer-Allied World Assurance Company$5,000,000 aggregate per member and$25,000,000 Pool aggregate. Other aggregates may apply within the Coverage Document. F. FURTHER CONDITIONS AND LIMITATIONS OF COVERAGE Under no circumstances shall the Authority's obligation to any member exceed$20 million per occurrence, inclusive of coverage or settlement determination costs, defense costs, and costs incurred by the Authority in obtaining indemnification from reinsurers for the occurrence. Any member seeking coverage from any insurance company or reinsurer for any occurrence under the Authority's Coverage Document agrees to pay all costs and expenses incurred in obtaining indemnification and/or defense costs from any insurance company or reinsurers. If requested by a member,the Authority may, in its sole discretion,elect to participate with a member and/or,with the member's consent,take full control over any legal effort by or on behalf of a member to seek or enforce indemnification and/or defense cost coverage from any insurance company or reinsurer and, if it does so,the Authority will be responsible for payment of 100% of any legal costs and expenses incurred in such effort done at the direction and control of the Authority and the member will be responsible for 100%of all costs or expenses incurred by the member or incurred at its'direction. Subject to the preceding sentence,the Authority shall have a right of subrogation and a subrogation lien against any monetary recovery or judgment rendered against any insurer or reinsurer in favor of a member for any monetary advances(such as claim settlement,judgment payment, appeal bond payment and legal expenses) made on behalf of a member by the Authority in excess of the Self Insured layer as stated herein, including but not limited to legal expenses, costs associated with hearings, arbitrations, mediations, negotiations or other proceedings related to seeking coverage for a member from any insurer or reinsurer. In the event that an occurrence exceeds the combined self insured, and all reinsured layer coverage limits,or if any self insured or reinsured aggregate limit has been exhausted within the coverage term, any remaining obligation will be the sole responsibility of the applicable member and shall not be the responsibility of the Authority nor any other member. Further coverage limits in the self insured and reinsured layers are limited to budgeted funds. Possible scenarios resulting from frequency of losses or a severity of loss may result in the exhaustion of all Authority funds. Replenishment of the self insured and reinsured layers may be made by special assessment as approved by the Board. Any occurrence not within the coverage definitions of the self insured or reinsured layer Coverage Document for the coverage years shall be the sole responsibility of the applicable member or employee against whom the claim is made and not the responsibility of the Authority nor any other member. In the event that the Authority is unable for any reason to recover from reinsurers any portion of a liability claim otherwise payable to a member under the terms of the Authority's Coverage Document,the Authority's obligation to the member shall be reduced by the amount of such non-recovery. The Authority shall make a reasonable effort to obtain reinsurance recovery, but nothing in this Agreement shall obligate it to instigate judicial or other proceedings, nor to take any particular action to obtain indemnification from reinsurers. In the event of a reinsurer's financial failure,or the exhaustion of the self insured layer aggregate,the total liability of the Authority for the policy years shall remain at$4 million per occurrence. Any remaining obligation over the$4 million coverage limit is also the responsibility of the applicable member. The Board may authorize the purchase of new reinsurance or self insure coverage layer. Liability coverage is subject to the terms, conditions and exclusions stated in the WCIA Coverage Document #CT-2024 for the self-insured coverage layer and to any reinsurance agreements,as well as all conditions and exclusions for liability coverage in the reinsured layer. WCIA 2024 Liability Joint Protection Program Page 4 G CLAIMS DEDUCTIBLES This program assumes no liability deductibles apply to any coverage. Claims deductible levels of$25,000, $50,000, $100,000, $250,000, $500,000 and$1,000,000 are potential coverage options for members that may, at the sole discretion of WCIA, be extended to members with the following characteristics: 1. The actuary must categorize the member in the highest total worker hour group for the projected period. 2. The member must be in compliance with applicable state and/or federal governmental accounting standards. 3. The member must have staff with authority to implement and administer the risk management function within the entity. 4. The member must have a demonstrated ability,practice and willingness to comply with WCIA Claims handling procedures and reporting requirements. Members that are given the option to exercise this coverage option,and who do so, must execute a Memorandum of Understanding regarding the administration and payment of claims. Members must report all claims and incidents, including those within their deductible layer,to the Authority for investigation. The Authority will periodically analyze and review the claims history of the member and distribute claims status reports. No member in good standing with WCIA is required to take an optional deductible level, if offered by WCIA. The Authority retains control of claims, assignment of defense counsel and settlement authority. The member will be included in the claims decision-making process. For claims decisions that are referred to the Executive Committee,the member involved will be invited to participate in claims settlement discussions in Executive Session. This claims deductible program is designed to provide the member who assumes significant individual risk with a reduced annual assessment and cash flow benefits. There are no changes to the Interlocal Agreement, Bylaws or Claims Manual concerning claim and litigation control or requirements for members that participate in a claims deductible program. II. DESCRIPTION OF SERVICES AND COST ALLOCATION A. AUTHORITY ADMINISTRATION Administration of the liability claims program is conducted in-house by Authority staff and is an administrative expense. Some field losses are assigned by staff to an outside claims service company for resolution under limited dollar authority. The claims service fees are an administrative expense. The Executive Director, Claims Manager and Adjusters are delegated settlement authority by the Executive Committee. Defense of litigation is a major coverage element and program expense. It is a loss cost and applies against a member's loss history and erodes the coverage limit. Selection and assignment of defense counsel is the responsibility of the Executive Director. B. GENERAL COUNSEL LEGAL SERVICES The Authority General Counsel is appointed by the Board to provide legal assistance concerning Authority operations to the Board, Executive Committee and Executive Director. The Authority Counsel cost is an administrative, not loss-cost,expense. C. CLAIMS COMMITTEE The Executive Committee serves as the Claims Committee, approving loss settlements and litigation decisions. It resolves a member's coverage appeal. D. CLAIMS COSTS Administration of the liability claims program is conducted in-house by Authority staff and is an administrative expense. Some losses are assigned by staff to an outside claims service company for resolution. The service company's fees are administrative costs. Defense of lawsuits are also a part of the program, are considered loss costs, and apply against a member's loss experience and also against coverage limits. Selection and assignment of defense counsel is the sole responsibility of the Executive Director. WCIA 2024 Liability Joint Protection Program Paae 5 III. MEMBER ASSESSMENTS Each member's assessment with the Authority is due within thirty(30)days of billing. Mid-year(new)membership will be prorated against the remaining coverage year assessment, payable within thirty(30)days. IV. CLAIMS PROCESS The Authority retains control of claims, assignment of defense counsel and settlement authority.The claims process is supervised by the Authority and includes development and implementation of claims procedures. Claims reports will be distributed annually to the membership. Members shall cooperate by promptly reporting all incidents,occurrences, claims and lawsuits which may result in potential liability, by participating fully in any investigation conducted by the Authority or its claims administrator, and by adhering to the claims procedures as set forth in the Authority Claims Manual. The Executive Director may settle any claim up to$150,000. Dollar authority above that level must be brought before the Executive Committee for approval. V. DEFAULT PENALTY A member which fails to file a timely Notice of Appearance which results in a Default in favor of Plaintiff shall be subject to any financial penalty or judgment rendered by the courts on behalf of plaintiff, and shall not be payable with Authority funds. Appeals on the enforcement of this Section may be made as outlined in Article VI, Section 2 of the Authority Bylaws(Bylaws). VI. COVERAGE DETERMINATION The Executive Director shall be responsible for making coverage determinations within the self-insured layer and reinsured layers regarding claims or litigation filed against the member in which a question of coverage and/or defense obligations exists. An appeal process has been adopted in the Bylaws,Article VII, Section 2,to allow members to bring before the Executive Committee any coverage decisions which they may contest. Respective requirements of each participating party are detailed in the Bylaws. Failure to follow the stated requirements may result in a waiver of coverage rights. VII. OTHER-INSURANCE If any member has other valid and collectible insurance or self-insurance,while is available to the member to cover a loss also covered by this Joint Protection Program,the coverage provided by this Joint Protection Program shall be in excess of and shall not contribute with such other insurance. VIII.CANCELLATION OR TERMINATION OF MEMBER LIABILITY COVERAGE Liability coverage provided under the Joint Protection Program may be canceled by an individual member by written notification of its intent to withdraw from participation in the Interlocal Agreement pursuant to Article 20 thereto. Coverage will cease either at the next coverage expiration date after notice, or upon the effective date of the member's withdrawal from the Authority,whichever comes first. Coverage under this program may be terminated by the Authority by a majority vote of the Board present at the meeting whereby such termination is proposed. Notice of termination shall be provided to the member, in writing, not less than sixty(60)days prior to the effective date of the termination,except that, if the member fails to pay any assessment when due,this coverage may be terminated by providing, in writing,ten(10)days notice. It is understood that cancellation or termination of coverage under this program shall constitute cancellation of coverage in both the primary and excess layer. Limits,terms and conditions of coverage is restricted to those in force at time of cancellation or termination. Should any premium credit of an individual member be returned to the Authority as a result of the cancellation in any excess insurance policy, it may be retained by the Authority and applied toward any outstanding or anticipated debts of the member to the Authority. Should all the financial obligations of the member be met, 90%of any premium return from the excess insurance carrier for the individual member shall be forwarded to the member.