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FY2007-29A Transferring Responsibilities - Ouzinkie Replacement DockA RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY RESCINDING RESOLUTION NO. FY2007 -29 AND AUTHORIZING THE BOROUGH MANAGER TO SIGN A NEW MEMORANDUM OF AGREEMENT (MOA) TRANSFERRING CERTAIN RESPONSIBILITIES AND LIABILITY FOR LEGISLATIVELY GRANT #07 -DC -511 (OUZINKIE REPLACEMENT DOCK) TO THE CITY OF OUZINKIE WHEREAS, during the 2006 legislative session the Kodiak Island Borough received a grant #07 -DC -511 in the amount of $570,000 on behalf of the City of Ouzinkie for the design and construction of the Ouzinkie Replacement Dock project; and WHEREAS, the Borough Attorney has reviewed the requirements of the grant, and state statute and finds that meeting these conditions requires the acceptance of substantial liability associated with the project by the Borough for items that KIB has no direct control over (design issues, construction practices and future maintenance); and WHEREAS, the original MOA adopted by Resolution No. FY2007 -29 needs to be rescinded because of substantial changes; and WHEREAS, a new MOA has been drafted that transfers the liability associated with the project from the Borough to the City of Ouzinkie; and WHEREAS, the accounting, auditing and administration aspect of the grant is required to remain with and be performed by the Borough; and WHEREAS, though the grant allows a grant administration fee of up to 10 %, the borough elects not to charge the grant for services provided by KIB; and. WHEREAS, Borough Staff has been working with the City of Ouzinkie, the Ouzinkie Native Corporation, and the Spruce Island Development Corporation (SIDCO) to move this project forward by completing and accepting this MOA. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT Resolution No. FY2007 -29 is rescinded and that the Borough Manager is authorized to sign the new Memorandum of Agreement with the City of Ouzinkie to transfer certain grant responsibilities and liabilities identified in State Grant #07 -DC -511 to the City of Ouzinkie who will be the ultimate owner and operator of the Ouzinkie Replacement dock. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SEVENTH DAY OF JUNE 2007 ATTEST: Nova' . Javier, CMC, Bo -•ugh Clerk Kodiak Island Borough, Alaska KODIAK ISLAND BOROUGH RESOLUTION NO. FY2007 -29A Introduced by: Manager Gifford Requested by: Manager Gifford Drafted by: CDD Director Cassidy Introduced: June 7, 2007 Adopted: June 7, 2007 KODIAK ISLAND OROUGH 1K JIne M. Selby, M Resolution No. FY2007 -29A Page 1 of 1 PURPOSE: MEMORANDUM OF AGREEMENT BETWEEN THE KODIAK ISLAND BOROUGH AND THE CITY OF OUZINKIE REGARDING CITY OF OUZINKIE MANAGEMENT AND OPERATION OF THE OUZINKIE DOCK REPLACEMENT PROJECT C 1. Provide grant administration for Grant 07 -DC -511 to ensure compliance with grant provisions, including, but not limited to filing all progress and financial reports required by DCCED. kelfw 0-1-19t This Memorandum of Agreement (Agreement) outlines the terms under which the Kodiak Island Borough (the Borough) agrees to authorize the City of Ouzinkie (hereinafter sometimes also referred to as City) to manage and operate the Ouzinkie Dock Replacement Project (hereinafter sometimes referred to as "Project" and the end product as "the Dock ") funded under Grant 07 -DC -511, issued by the Department of Commerce, Community and Economic Development (DCCED) (hereinafter sometimes referred to as "Grant Agreement "), attached hereto as Exhibit B and hereby incorporated by reference and consistent with the following: PROJECT TITLE: Ouzinkie Dock Replacement AGREEMENT EFFECTIVE DATE: June 26 , 2007 AGREEMENT COMPLETION DATE: June 30, 2011 GRANT TERM: July 1, 2006 — June 30, 2011 SERVICES: A. KODIAK ISLAND BOROUGH SHALL: 2. Reimburse the City of Ouzinkie for authorized expenditures incurred by the City for the Ouzinkie Dock Replacement Project in an amount not to exceed that provided for such purpose in the above referenced grant. These costs shall be reimbursed subject to compliance with the Project Budget, and any subsequent amendments to the Project Budget, and all other provisions of Grant 07 -DC -511, issued by the DCCED. B. THE CITY OF OUZINKIE SHALL: 1. Operate and manage the Ouzinkie Dock Replacement Project in compliic : . with the Scope of Work and all other provisions of Grant 07 -DC -511' a d if t� � �;1 7 ; subsequent amendments issued by DCCED. if JUL -22 L Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 1 of 12' fiL ijfl _'(r t ; r, qA - , 2. Procure engineering and design work, survey and mapping, geotechnical work, permitting and construction services for the Dock Replacement Project in compliance with the more stringent of Ouzinkie local ordinances, Kodiak Island Borough or State of Alaska procurement requirements. 3. As ultimate owner of the Dock to be designed pursuant to this Agreement, City expressly agrees to comply with the all grant provisions related to its ownership and management of the facility, including but not limited to those provisions listed below. The city also acknowledges that the Borough is not responsible for performance of the obligations of the property owner, that the City shall perform all such obligations, and shall hold the Borough harmless from any liability or causes of action arising from ownership and operation of the dock. Further, the City and Borough agree as follows - a. Notwithstanding the terms of Article 2 of Attachment C of the Grant Agreement, the Borough and City understand that the Grant Agreement is for the benefit of the parties to it but that the improvements arising out of the referenced grant are for the benefit of the City as the City will own the Dock to be constructed using the grant funds. Further, the City of Ouzinkie, its successors and assigns, will protect, save and hold harmless the State of Alaska, its DCCED, and the Kodiak Island Borough and their respective officers, officials, employees, agents and volunteers, from all claims, actions, costs, damages or expenses of any nature whatsoever by reason of the acts or omissions of the City, it's subcontractors, assigns, agents, contractors, licensees, invitees, employees or any person whomever arising out of or in connection with any acts or activities authorized by the referenced Grant Agreement and/or any activities arising there from or performed in connection therewith. The City further agrees to defend the State of Alaska, its DCCED and the Borough and their authorized agents and employees in any litigation, including payment of any costs or attorney's fees for any claims or actions commenced arising out of or in connection with acts or activities authorized by the referenced Grant Agreement and /or any activities arising there from or performed in connection therewith. This obligation shall not include such claims, costs, damages or expenses which may be caused by the sole negligence of the State of Alaska, its DCCED or the Borough or their authorized agents or employees, provided, that if the claims or damages are caused by or result from the concurrent negligence of (a) the DCCED and /or the State of Alaska or the Borough and /or their agents or employees, and (b) the City, it's agents or employees, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the City, or the City's agents, employees, officials, officers and volunteers. b. In compliance with Attachment C, Article 24, of the Grant Agreement, the City hereby assumes all liabilities arising from the ownership and operation of the Project and agrees to hold the DCCED, the State of Alaska and the Kodiak Island Borough harmless from any and all causes of action arising Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 2 of 12 c. Notwithstanding the representations in Attachment C, Article 25 of the Grant Agreement the Borough and City agree that a) the City owns the property or city will acquire the property to be benefited by the referenced grant, b) the City has the legal right to occupy the property and use the property for all purposes necessary or desirable to the grant and c) the City warrants that there is legal access to the property such that the Dock will realize the benefits of the referenced Grant and benefit from application of the grant funds. The City hereby grants the Borough all right of access necessary or desirable to the Borough for administering the Grant Agreement and as maybe further required of the Borough by the Grant Agreement. d. In compliance with Attachment C, Article 27 of the Grant Agreement, the City agrees and warrants that it will comply with the requirements regarding engineering services. e. In compliance with Attachment C, Article 31 of the Grant Agreement, the City agrees and warrants that the Dock shall be dedicated to public purposes for its useful life and further that the benefits of the Project shall be made available without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. f. In compliance with Attachment C, Article 32, of the Grant Agreement, the City agrees that it will be solely responsible for the operation and maintenance of any facility, improvements, equipment or other items acquired under the referenced Grant between DCCED and the Borough. Re: Appendix B2 Articlel of the Grant Agreement — Notwithstanding any other indemnity term in this Agreement the City shall indemnify, save harmless and defend the State of Alaska and the Kodiak Island Borough, their officers, agents, employees, officials and volunteers from all liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising directly or indirectly as a result of any error, omission or negligent act of the City or it's subcontractor(s), their employees, officers, officials, agents and volunteers or anyone directly or indirectly employed by them in the performance of the contract or construction Project or the use of the Grant funds. g. from the ownership and operation of the Project and /or use of the grant funds. All actions or claims including costs and expenses resulting from injuries or damages sustained by any person or property arising directly or indirectly from the City's performance of this Agreement which are caused by the joint negligence of the Borough or State and City shall be apportioned on a comparative fault basis. Any such joint negligence on the part of the State or Borough must be a direct result of active involvement by the State or Borough. Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 3 of 12 h. Appendix E /Site Control - The City shall provide the Borough evidence satisfactory to the Borough that the City has control or will have control of the project site, including but not limited to, construction, construction, utility projects, fuel storage, roads and trails necessary or desirable for successful use of the grant funds and project completion. The City hereby grants to the Borough authorization, to the extent the Borough deems necessary or desirable, to use or access the Ouzinkie Dock and such other City property as roads, fields and /or utilities, in connection with construction of the Ouzinkie Dock with the grant funds referenced in this Agreement. i. All other provisions of the Grant Agreement are incorporated herein by reference and to the extent the Grant Agreement places burdens on the Borough, which burdens are in the Borough's sole discretion more appropriately burdens of the City, the City hereby assumes such burdens. 4. Request prior approval from the Borough and DCCED for any work contracted to a third party and meet all other requirements for third party agreements including but not limited to those contained in Sections C 9, 10 and 11 of this Agreement, all applicable provisions of Grant 07 -DC -511 as amended, and the City of Ouzinkie Code of Ordinances. 5. Provide documentation and reports requested by the Borough to ensure compliance with grant provisions. Further, the City agrees that the Department of Commerce and Community Economic Development of the State of Alaska and other authorized representatives of the State of Alaska shall have full access and the right to examine, excerpt, or transcribe any pertinent documents, papers, records, and books or the City, and of persons or organizations with which the City may contract under this Agreement. C. ADDITIONALLY, THE PARTIES AGREE AS FOLLOWS: 1. Grant Agreement No. 07 -DC -511, Ouzinkie Dock Replacement, effective November 14, 2006 is herein incorporated in its entirety by reference. The parties agree that all provisions of the Grant Agreement between the Borough and the Department of Commerce, Community and Economic Development (DCCED) are herein incorporated as if enumerated herein. Notwithstanding that the above referenced Grant Agreement is between the State of Alaska and the Kodiak Island Borough, as between the Kodiak Island Borough and the City of Ouzinkie, the City agrees to assume all burdens, duties and obligations (however termed nr characterizeri) a scrihed to the Borough as grantee b w hich arise • V , V �� M , n V V � M VV �, VVV lV •„ V vrV M V y I M „l V V V V� which M „VV from, or relate to 1) City's ownership or 2) operation of the facility to be improved or related property, release the Borough from the same, and indemnify, defend and hold harmless the Kodiak Island Borough from all such duties, obligations and burdens, including but not limited to those stated in Article 2; Article 24; Article 25; Article 27; Article 31; Article 32; Appendix B 2 Article l ; Appendix E /Site Control of the Grant Agreement. The parties to this Agreement shall cooperate in implementing the terms of the Grant Agreement. Memorandum of Agreement - City of Ouzinkie Dock Replacement - Page 4 of 12 2. Compensation. a. Total Compensation. Unless expressly agreed to in writing by the Borough and City, the maximum payment by the Borough to City for the portion of this Project funded by Grant 07 -DC -511 shall be $570,000 or the entire amount of the grant. No administrative fees for managing this grant will be charged against the grant. b. Manner of Payment. The Borough shall make payments to the City as follows: City shall submit monthly invoices for services rendered and for reimbursable expenses incurred within sixty (60) day of performance of the service or incurring the expense unless an extension is authorized in writing by the Borough Manger. The invoice shall itemize the hours worked, tasks addressed and /or completed, identifying the number and classification of hours worked in each task. Reimbursables shall be supported by true, correct and legible copies of City's invoices for authorized reimbursables, check copies or other proof of payment, copies of payroll records including signed and approved timesheets, payroll checks, and fringe benefit costs. The Borough may refuse any claim for services or expenses a) for monthly invoices made more than sixty (60) days after performance of the service or incurring the expense (without an extension) or b) for the final invoice, made more than fifteen (15) days after the termination date of Grant Agreement. If the Borough objects to any invoices or portions thereof submitted by the City, the undisputed portion shall be paid. 3. Termination. This Agreement may be terminated by either party for any reason, prior to its expiration date on thirty (30) days written notice to the other party however the Borough shall be entitled to terminate this Agreement for its convenience upon seven days notice to City and limit its obligations to the City to amounts earned, incurred or obligated by the City prior to receipt of the termination for convenience notice from the Borough. If Grant 07 -DC -511 is terminated or suspended by DCCED for any reason prior to the termination date in the Grant Agreement, this Agreement shall be terminated on the same date. If this Agreement is terminated for any reason, the Department of Commerce, Community and Economic Development shall be notified in writing addressed to DCCED Grants Section, PO Box 110809, Juneau, Alaska 99811 -0809 within ten rive of et irh termination days of ��av� 1 termination. i n i iauvI 1. 4. Insurance. City will submit certificates of insurance for this Agreement and agrees to the conditions regarding insurance as set forth above and in attached Exhibit A, which is incorporated herein by reference and made a part of this Agreement. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 5 of 12 5. Notice to Proceed. This Agreement shall not be binding upon the Borough or City until the Borough furnishes City a Notice to Proceed. The Notice to Proceed shall be attached to and made a part of this Agreement. Any work done by City before the Notice is furnished and attached to this Agreement shall be at City's own expense and risk, provided however, that work performed by City before receipt of the Notice to Proceed (early work), and which is consistent with this agreement and approved in writing by Borough before or after performance of such work, shall be compensated for under this Agreement, if such Notice to Proceed is later furnished by Borough and attached to this Agreement together with the Borough's written approval of the "early work ". 6. Indemnity. City agrees to indemnify, defend [with legal counsel approved by Borough], and hold the Borough and its administrators, officers, agents, employees, volunteers and servants and the Department of Commerce, Community and Economic Development and the State of Alaska and its administrators, officers, agents, employees, volunteers and servants harmless from and against any and all claims, demands, actions, losses, expenses, and liabilities for, or related to, loss of or damage to property or injury to or death of any person relating to or arising or resulting in any way from the performance by City or any of its Subcontractors under the Agreement, or the work or services provided or the condition or use thereof, regardless of any negligence of the Borough or DCCED, excepting only such loss, damage, injury or death which results solely from the negligence or willful misconduct of the Borough or DCCED or solely from the joint negligence or willful misconduct of Borough or DCCED and a third party directed by Borough or DCCED. This clause shall be read and construed consistent with any other same or similar clause in this Agreement such that the Borough and State derive maximum benefit of defense, indemnity and hold harmless from the City. 7. Third Party Contracts. Prior approval by the Borough and DCCED is required for any work to be contracted to a third party. Any subcontractor shall be bound to every provision of the Grant Agreement and each subcontract shall include a provision that the Borough, DCCED and the State of Alaska are not liable for damages or claims for damages arising from any subcontractor's performance or activities under the terms of the subcontract. 8. Conflict of interest. No officer, employee or member of the Borough or City ; no member of the governing body of the jurisdiction in which the project is undertaken or located; and no other official of such locality or localities who exercises any functions or responsibilities with respect to the project during his or her tenure, shall have any personal or pecuniary gain or interest, direct or indirect, in any contract, subcontract or the proceeds thereof, for work to be performed in connection with the project assisted under the Grant 07 -DC -511. 9. Discrimination. City may not discriminate against any employee or applicant for employment because of race, religion, color, national origin, age, physical Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 6 of 12 handicap, sex, marital status, changes in marital status, pregnancy or parenthood. City shall post in a conspicuous place, available to employees and applicants for employment, a notice setting out the provisions of this paragraph. a. The City shall state, in all solicitations or advertisements for employees to work on this project (a state funded project), that it is an equal opportunity employer (EEO) and that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. b. The City shall include the provisions of this Discrimination article in every contract relating to this Agreement and the Borough's Grant Agreement from which this Agreement is derived, and shall require inclusion of these provisions in every agreement entered into by any of its contractors, so that those provisions will be binding upon each contractor or subcontractor. 10. Compliance with Laws. City agrees to comply with all applicable federal, state and local laws and regulations. 11. Audit. The City agrees that it is bound to, and subject to, all terms of the incorporated "Appendix A Audit Regulations" and "Appendix B Audit Compliance Supplement" to the Grant Agreement. 12. Law and Venue. The law of the State of Alaska shall govern this Agreement. Venue for any legal proceeding relating to this Agreement shall be in the Superior Court in Kodiak Alaska. 13. Notice. Unless otherwise provided herein, any notices or other communications required or permitted by this Agreement to be delivered to the Borough or City shall be in writing and shall be considered delivered when personally delivered to the party to whom it is addressed, or in lieu of such personal delivery, when deposited in the United States mail, first class certified mail with return receipt requested, postage prepaid, addressed to the Borough or City at the address set forth below: Kodiak Island Borough Attn: Borough Manager 710 Mill Bay Road Kodiak, Alaska 99615 City of Ouzinkie Zack Chichenoff, Mayor PO Box 109 Ouzinkie, Alaska 99644 Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 7 of 12 14. Entire Agreement. This Agreement constitutes the entire agreement between the Borough and City as to the matters stated herein. It supersedes all prior oral and written understandings and agreements as to such matters. it may be amended, supplemented, modified or canceled only by a duly executed written instrument. It shall bind the Borough and City, its successors, executors, administrators, assigns and legal representatives. DATED the day and year last written below. rlr's,N� Rick Gifford, Manager /744 ate Zack Chichenoff, Mayor ads Kodiak Island Borough City of Ouzinkie 6��r cr ATTEST: r ell Clerk / REVIEWED AS TO FORM: t1 u1 Kodiak Isla Borough Attorney Date Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 8 of 12 EXHIBIT A INSURANCE REQUIREMENTS Insurance Requirements for City. City shall procure and maintain the following insurance: A Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office form number CG 0001 (Edition 10 01) covering Commercial General Liability. 2. Insurance Services Office form number CA 0001 (Edition 7 97) covering Automobile Liability, symbol 1 "any auto ". 3. Workers' Compensation insurance as required by the State of Alaska and Employer's Liability Insurance. 4. Professional Liability insurance against liability arising out of the rendering or failure to render professional services under this Agreement on a form acceptable to the Borough. 5. Employee Dishonesty insurance for loss to the Borough's property or money, caused by the fraudulent or dishonest acts of City's employees or subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether acting alone or in collusion with others. B Minimum Limits of Insurance City shall maintain limits no less than: 1. General Liability $1,000,000 combined single limit per occurrence for bodily injury, property damage, personal injury and advertising injury. The general aggregate limit shall be $2,000,000. The general aggregate limits shall apply separately to each project. General liability insurance shall be maintained in effect until final acceptance by the Borough of the completed construction and, for products liability and completed operations liability, at least five years thereafter. If the City utilizes a subcontractor(s) to perform any part of the work under this contract, the general liability insurance shall not contain any endorsements that exclude the work of the subcontractor(s). Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 9 of 12 2. Auto Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. For any Borough auto(s) being driven by the City (including any employee, supervisor, manager, agent, sub - Contractor or their employee, supervisor, manager, agent, etc.), the City agrees to insure that vehicle(s) as a scheduled auto(s) to their auto policy. It is agreed that the City's auto policy will: (a) Provide the primary liability insurance for the Borough auto(s) as though the auto(s) were a leased auto(s), naming the Borough as an additional insured and loss payee; and (b) Provide for physical damage losses (both comprehensive and collision) with a deductible of no more than $1,000 per accident and naming the Borough as an additional insured and loss payee. 3. Workers' Compensation and Employer's Liability: Workers' Compensation shall be statutory as required by the State of Alaska. Employer's Liability shall be endorsed to the following minimum limits: Bodily Injury By Accident - $1,000,000 each accident; Bodily Injury By Disease - $1,000,000 each employee; Bodily Injury By Disease - $1,000,000 policy limit. 4. Professional Liability: $1,000,000 combined single limit per occurrence. The general aggregate limit shall be $1,000,000. The professional liability insurance shall be maintained in effect until final acceptance by the Borough of the completed project. If the professional liability insurance is written on a claim made form, City shall provide insurance for a period of five years after final payment of this Agreement. The policy(s) shall evidence a retroactive date, no later than the beginning of this Agreement. 5. Employee Dishonesty: $100,000 per claim. 6. Excess Liability: In order to meet the required minimum limits of insurance it is permissible for City to combine an excess liability or umbrella policy with the general liability, auto liability or employer's liability. In the instance where City purchases an Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 10 of 12 excess liability or umbrella policy the occurrence limit and the aggregate limit may be of the same amount on the excess liability or umbrella policy. Excess liability insurance, if any, shall be maintained in effect until final acceptance by the Borough of the completed construction, project, services, or contract, and, for products liability and completed operations liability, at least five years thereafter. If the excess liability insurance is written on a claim made form, the City shall provide insurance for a period of five years after final payment of this agreement. The policy(s) shall evidence a retroactive date, no later than the beginning of this agreement. C. Deductibles and Self- Insured Retention Prior to work commencing any deductible or self- insured retention must be declared and approved by the Borough. City may be requested to demonstrate how the deductible or self - insured retention will be funded in the event of a claim. At the option of the Borough, City shall reduce or eliminate such deductibles or self - insured retention as respects the Borough, its officers, officials, employees and volunteers; or City shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability, Automobile Liability and Excess Liability (a) The Borough, its officers, officials, employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of City; products and completed operations of City, premises owned, occupied or used by City, or automobiles owned, leased, hired or borrowed by City. The coverage shall contain no special limitation on the scope of protection afforded to the Borough, its officers, officials, employees and volunteers. (b) City's insurance coverage shall be primary insurance as respects the Borough, its officers, officials, employees and volunteers. Any insurance or self- insurance maintained by the Borough, its officers, officials, emralntioon ..reel ve-.l„ri4esesre. e.h.,ll h., .w..e.e.n e.i h.4 ,..- ...J ..k..Il ....♦ GI III./IVy GGJ G1111.4 VVIU11LGGIJ J1141:111 VG GJIVGJJ VI Vll�l J 11 IJUI al IL GI IU Shall not contribute to it. (c) City's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employer's Liability Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 11 of 12 The City's insurer shall agree to waive all rights of subrogation against the Borough, its officers, officials, employees and volunteers for losses arising from work performed by City or any subcontractor for the Borough. 3. All insurance Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after 30 days prior written notice for nonpayment of premium or fraud on the part of City or 60 days prior written notice for any other reason by certified mail, return receipt requested, has been given to the Borough. Such notice shall be mailed by City's insurer(s) to the attention of the Borough's Risk Manager. 4. Added Insured The Borough and State of Alaska / DCCED shall be identified as certificate holders and as additional insureds on City's insurance and the certificate(s) on its face shall demonstrate that the requirements of D 1 — 4 (in this Exhibit A) above are met. E. Acceptability of Insurers Insurance is to be placed with insurers with a Best's rating of no less than A +. F. Verification of Coverage City shall furnish the Borough with approved certificates of insurance and with certified copies of all endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates are to be on forms provided by the Borough. All certificates are to be received and approved by the Borough before the contract is processed. The Borough reserves the right to require complete, certified copies of all required insurance policies, at any time. G. Subcontractors City shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements semed l is IUI each l subco dU actor . All coverage for subcontractors shall be subject to all requirements stated herein. Memorandum of Agreement — City of Ouzinkie Dock Replacement — Page 12 of 12