Kruger Clinic Refresh

9/22/2022 - Kruger Clinic Pressure Washing

The Clinic janitorial service Armstrong will be pressure washing entry ways and sidewalks after hours on Saturday 9/23 and Monday 9/25. They have been briefed on hours of operation and are scheduling their work to avoid inconvenience to tenants and patients. Questions or concerns please contact Michael Rourke of Coast Property Management 425-985-9670.

9/22/2022 - The roofing company will be out on Friday, the 23rd, to replace the 7 skylights. There should be minimal impact to any of the suites with this work other than foot traffic up on the roof. This project should only take the one day to complete. Questions or issues please contact John Mansfield at 425-866-7753.

9/9/22 - Over the last several months Verdant has been in the search process for a new property management company. After extensive research, interviews, and due diligence we have selected JSH Property Management to replace Coast Property Management effective 10/1/2022. JSH is a local Puget Sound Company with an extensive history supporting a variety of commercial properties since 1986. Verdant has been actively engaged in making improvements to the clinic facility and evaluating all service providers to the Kruger Clinic. This decision comes as a result of that effort. As we move towards 2023 improvement projects continue with the HVAC system replacement and the building refresh project. We are confident JSH will provide our tenants with a high level of service meeting not only the day-to-day facility support but project management as well.

Your JSH tenant facing contacts will be Jim Forenza and Blake Samuel. They will be conducting building walk throughs with Coast the week of 9/12 and will be stopping by tenant offices for personal introductions and to provide their direct contact information the following week. Through September it is business as usual with Coast Property Management, Michael Rourke and John Mansfield. We extend our appreciation to them for their hard work over the past several months and their assistance through this transition period.

We are actively working in the background to make all the necessary changes. This involves careful coordination and communication with tenants, vendors, service providers, banking, landlord and all other partners that support the clinic. Together with JSH, Verdant will be sending out communications over the next couple of weeks to ensure you have all key information necessary to support the change.

**There is no change to your rent remittance at this date, whether you remit by ACH or through check mailed to Verdant. Please submit all rent remittances directly to Verdant until further notice**

As landlord, we will do our best to ensure communication and information is timely and your needs are met as this transition takes place. We appreciate your patience as our new property management company gets familiar and onboarded.

Thank You,

Lisa Edwards-Superintendent-Verdant

Riene Simpson-Director of Finance-Verdant

8/27/22 - The roofing is complete with the exception of skylight replacement and the installation of a rooftop walking path to access the HVAC units. There is a supply delay on the skylights. As soon as the materials arrive this work will be completed by Columbia. For now, all equipment, dumpsters and materials should be removed from the premises by Friday 8/27/22.

8/12/22 - The new roof is virtually complete. Columbia Roofing will return to replace the skylights as soon as the replacements arrive, at the same time they will add a walking path to the rooftop HVAC systems to protect the new roof and maintain the warranty. This will not present any inconvenience to tenants. We would like to express our appreciation to staff and patients of the clinic during the HVAC downtime and weather delay and to our project manager John Mansfield for his attention to your needs.

8/1/22 - Roofing is progressing on schedule with the west side of the building nearly complete. Please be sure to read the communication sent to all tenants on Friday 7/29/22 regarding activity the week of 8/1/22.

IMPORTANT REMINDER: Thursday 8/4-through Saturday 8/6 HVAC systems to the east side of the building will be off line in order to replace ductwork. Temporary cooling and airflow has been coordinated with all impacted tenants with walk through’s in this section of the building. McKinstry and Coast Property Management will be on site Wednesday 8/3/22 installing this temporary equipment. Contact Coast Property Management: John Mansfield, Project Manager, 425-866-7753 or Michael Rourke-Property Manager, 425-985-9670 with any issues or questions during this period.

Project Manager-John Mansfield, Coast Property Management 425-866-7753—Please refer to correspondence sent to clinic managers on Thursday 7/14/22

• This project is ahead of the previously discussed dates, materials were loaded to the roof 7/14/22.

• Old roof tear off and replacement will begin on Monday 7/18/22, starting with the west side of the building. There will be noise and limited obstruction in the areas designated on the overview. This phase is expected to take 2 weeks. There will be no HVAC or service disruption to the clinic during this phase.

• New ductwork must be installed in one section of the building and is currently being fabricated. It is tentatively scheduled for installation the weekend of 8/6-8/7 so as not to disrupt clinic operations. Related HVAC systems will be off during that weekend window. Impacted clinic suites will be contacted directly when the date gets closer.

• Phase 2 roof replacement, the east side of the building is scheduled for 8/1/22 through 8/12/22.

• Noise, some parking lot obstruction and odors are to be expected but with every effort to limit inconvenience to the tenants and patients.

8/12/22 - The leak has not returned at this time, however the mystery and research continues. After coordination and conversations with multiple vendors, the City of Edmonds and the Snohomish County PUD it appears that this exact leak repeats itself around the same time each year. The consensus between these parties is the leak is likely coming from an uphill source that flows into conduit that runs down 216th. This would explain why water follows exactly the same path and why the electrical service vaults at the bottom fill. The PUD and irrigation company who have continuity in personnel noted that this leak has occurred annually over the past several years, then simply stops as quickly as it started. The PUD has serviced the vaults and assured us there is no risk to any equipment or service. The property management team continues to explore options to determine the source.

8/1/22 - The leak has stopped at this time however research into the source continues. There is still no water in crawl spaces of building and no tenants are reporting plumbing issues. Coast is coordinating with a plumbing contractor to test individual tenant suites for the possible source. They will be in contact with tenants for a coordinated plan to access suites as necessary. The PUD has been contacted to inspect the electrical vaults as water was recently detected in those boxes. None of the electrical service to the building has been impaired and with the hot weather are likely dry by today. The property management team cannot access or perform any work on the electrical equipment vaults or contents. If you have any concerns or questions please contact Michael Rourke 425-985-9670.

7/22/22 - The City of Edmonds has ruled out this being a city pipe or water supply issue as of this date. The leak is exterior to the building, intermittent and proving to be difficult to locate. There have been no reports from any of the suites regarding an internal building leak or issue and the building crawl spaces are being checked frequently for changes. The source appears to be under the northeast section of the building. Further diagnostics are being coordinated and may require some testing within individual suites. Michael Rourke will be in touch with clinic managers for coordination when next steps are finalized.

7/14/2022 - An exterior, steady, low volume, water leak has been identified on the north side of the building the week of 7/5/22. Interior Building, crawl spaces and electrical vaults have been inspected and are not impacted. The area along the landscape and sidewalk have been coned off. Irrigation vendors and the City of Edmonds have been on site inspecting and diagnosing all week. The source has not yet been identified but appears to be underground and uphill from the Kruger clinic. More will be reported as information is available.

8/12/22 - The July servicing and repairs to the failed units appears to have resolved the issues and the equipment has been running without issue since the repairs were made. The ductwork replacement and reconnection to the systems done in coordination with the roof work went smoothly and all is running smoothly. There are some control issues that are being researched in Swedish Pediatric Exam rooms. Air is circulating; however, it is not cooling air. Coast Property management is working with McKinstry to isolate the cause and resolve this.

Ductwork replacement - 8/1/22 Please be sure to read the communication sent to all tenants on Friday 7/29/22 regarding activity the week of 8/1/22. IMPORTANT REMINDER: Thursday 8/4 through Saturday 8/6 HVAC systems to the east side of the building will be off line in order to replace ductwork. Temporary cooling and airflow has been coordinated with all impacted tenants with walk through’s in this section of the building. McKinstry and Coast Property Management will be on site Wednesday 8/3/22 installing this temporary equipment. Contact Coast Property Management: John Mansfield, Project Manager, 425-866-7753 or Michael Rourke-Property Manager, 425-985-9670 with any issues or questions during this period. We thank you for your patience as we work through these improvements.

7/22/22 - The roofing project is proceeding as planned. A full update from the project manager can be found under the Project Communication tab sent to all tenants today. In summary, phase 2 on the east side of the building will begin on August 1st. To finish the east side, there will be a period when the HVAC must be turned off. The two large units that serve the east side of the building have large ducts that run along the surface of the roof. Due to their proximity to the roof, they cannot be roofed underneath without being removed. We have strategized options to coordinate all vendors and limit the disruption to you as this work needs to take place on August 4th, 5th, and 6th, a Thursday-Saturday. What does this mean for tenants: From Thursday 8/4 through Saturday 8/6 HVAC units covering the east side of the clinic will be disabled and there will be no airflow to suites on this side of the building specifically: Swedish Pediatrics, Wound Care, Administration and the Edmonds Medical Clinic. We have a plan for temporary cooling units and our property management team from Coast will be in contact with affected clinic managers to discuss this option the week of July 25th. This solution was used for the Pediatric Clinic over the while one unit was intermittently down for repairs. Although not ideal, it is the best we can do to help keep the suites comfortable for the Thursday through Saturday window. Again, property and project managers are coordinating a supply of temporary cooling units with a vendor and will be in touch.

In Progress - A comprehensive HVAC and mechanical replacement is currently in process for competitive bidding.  The goal is to publish the invitation to bid by mid August. Supply chain issues will dictate when this work can be completed as lead times re extensive for the large HVAC units, some requiring 6 months.  This project will include new units, modern centralized controls, and hot water supply to the clinic as well as a generator to support the systems and lighting.  We will be surveying tenants regarding specific needs for your clinic facilities as we work through this process with vendors.

Full System Replacement Project - 8/1/22 The invitation to bid for the full HVAC replacement project is with legal for review with the goal of publishing to vendors 8/9/22.

8/12/22 - There is an irrigation valve issue preventing watering to some landscape to the south of the Urgent care entrance. This is being investigated for repair. A full walk through with the landscape company was completed the week of 8/2 to discuss the overgrowth and unkempt areas. This is unsatisfactory and not to the standard of the contract with the vendor. This was addressed with clean up the week of 8/8. The overgrowth of shrubs on the west side of the building bordering the Pavilion is being discussed currently with an expectation that this will be cleaned up and pared back as well. The parking signs need to be reinstalled and the stalls and parking curbs need to be free from overgrowth.

8/1/22 - We have asked for additional attention to the entry ways, including pressure washing to the concrete sidewalks and paths as well as daily cleaning of the door glass and general cleanliness of the entrances to the clinic. We’ve had reports of garbage can overflow as well. Pressure washing will take place on an upcoming Sunday to avoid inconvenience. Additional attention to landscape overgrowth and maintenance has also been requested. Janitorial and landscape services contracts are being reviewed for vendor compliance with our agreements.

The 7 days per week 2 shifts at 16 hours of on site security appears to be working effectively. We’ve had no reports of incidents or problems since this change and our property managers are checking in with the security company frequently. Please let Coast know if you experience any issues whatsoever.

Weekend door access is being reassessed at this time. This impacts just the clinic facilities open on weekends, Swedish Urgent Care and Swedish Pediatrics (Saturdays only). All doors are set for timed lock and unlock. Currently just the west doors flanking either side of Urgent Care are open on the weekends and we are evaluating opening the southern main entrance for Pediatric patients. Until that time doors should not be propped open to circumvent the schedule under any circumstances. Patients should be directed to the two open weekend doors. This is for the security of patients and staff alike. We will advise all tenants of the door schedule as soon as a final decision has been made and communicated to the security team. We expect this to be resolved the week of 8/15.