Agreement

City of Chandler — Study Session (2026-09-14)

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File: 2200531 
 
CONSTRUCTION SERVICES AGREEMENT 
(Municipal) 
 
This Construction Services Agreement for construction, modification or relocation of SRP 
irrigation facilities (“Agreement”) is entered into by and between the Salt River Project 
Agricultural Improvement and Power District (“District”) and Salt River Valley Water 
Users’ Association (“Association”; collectively, “SRP”) and City of Chandler  
(“Municipality”) as of this ____ day of____, 202__.  SRP and Municipality may be referred 
to as “Party” or “Parties.”   
 
RECITALS 
 
A.  SRP manages certain irrigation facilities (the “Facilities”), including certain 
irrigation facilities owned by the United States of America (“USA”), on behalf of 
the Association and/or SRP;  
 
B. Municipality has requested that SRP Facilities be modified or relocated to 
accommodate certain improvements or other development needs of Municipality’s 
project known as Ray Road & Dobson Road Improvements;  
 
C. The Facilities to be modified or relocated in accordance with this Agreement are 
located at RAY ROAD AND DOBSON ROAD (the “Specified Facilities”); 
 
D. SRP has prepared plans and specifications for the modification of the Specified 
Facilities for Municipality’s project (“the Plans”);  
 
E. SRP is willing to perform such accommodation, in whole or in part, or to permit 
Municipality to construct such accommodation, in whole or in part, with certain 
conditions (“Work”); and 
 
F. After receipt of SRP’s Notice to Proceed, the modifications or relocations, as shown 
on the Plans, shall be constructed by SRP, as applicable, in accordance with the 
Plans and this Agreement. 
 
TERMS AND CONDITIONS 
 
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which 
are acknowledged, the Parties agree as follows: 
 
1) Contract Documents.  This Agreement incorporates by reference the Plans and the 
Notice to Proceed, together with all other documents, exhibits, specifications and 
plans referred to in the Plans or Notice to Proceed (collectively, the “Contract 
Documents”). 
 
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2) Municipality’s Acknowledgement.  Municipality acknowledges that Municipality 
has received and reviewed the Plans and specifically agrees that the Plans meet all 
of Municipality’s requirements. 
 
3) Permits and Licenses.  Each party to this Agreement shall obtain all licenses, 
permits, approvals and other agreements require for such party to perform its 
obligations under this Agreement. 
 
4) Easements and Rights-of-Way.  If, in accordance with the Plans, any construction 
or other work is required to be done outside of SRP’s existing right-of-way, as 
reasonably determined by SRP, Municipality shall provide all necessary land, 
easements and rights-of-way as required by SRP, for permanent improvements and 
the construction of the permanent improvements and other work. 
 
5) Interpretation of the Plans.  Work shall be performed in accordance with SRP’s 
standards for improvements of the Facilities.  Any question with respect to the 
intent or meaning of the Plans shall be determined by SRP, and such determination 
shall be final and binding upon Municipality. 
 
6) Scope of Work.  The Construction Bid Summary is attached hereto as Exhibit A.  
SRP shall perform the Work listed on the Construction Bid Summary Section I, and 
optional Section II, if offered by SRP and selected by the Municipality.  Prices 
quoted below and in the Construction Bid Summary are valid until October 9, 2026.  
The Work is further detailed in SRP’s Plans and specifications, which are attached 
hereto as Exhibit B. 
7) Options.  Municipality shall select one of the options below by checking the 
appropriate box and initialing acceptance in the appropriate space.  
☒ 
OPTION A - Work that must be performed by SRP, with pipeline 
construction (if applicable) by Municipality.  Municipality shall pay SRP 
$1,600,430.00 for inspection, survey, construction engineering, as-built drawings 
and project supervision, as set forth in Section I of Exhibit A. 
Please initial here for acceptance of Option A: _______ 
 
☐ 
OPTION B - Work that must be performed by SRP, and optional pipeline 
construction by SRP.   Municipality shall pay SRP $_______ as set forth in 
Sections I and II of Exhibit A.  
Please initial here for acceptance of Option B: N/A 
 
 
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8) Compensation.  Municipality shall pay SRP for the actual cost of Work, including 
Work performed pursuant to any changes to the Plans.  The initial invoice is 
provided concurrently with this Agreement.  If applicable, SRP will provide 
additional invoices for subsequent changes to the Plan and/or Construction Bid 
Summary.  All invoices are due no later than within one hundred and twenty (120) 
days after completion of the Work.  
 
a. Any bills not paid when due shall be delinquent and shall bear interest at 
the Wall Street Journal Prime Rate, on the date the bill was due plus 2% 
(Wall Street Journal Prime Rate plus 2%) per annum from the date when 
the bill was due until the bill is paid (including any accrued interest) is paid 
in full.  
 
b. In the event any portion of any bill is disputed, the disputed amount shall 
be paid under protest when due and shall be accompanied by a written 
statement indicating the basis for the protest.  If the protest is found to be 
valid, Municipality shall be refunded any overpayment plus interest, 
accrued at the rate set forth in Paragraph 8(a), prorated by days from the 
date payment was credited to Municipality to the date the refund check is 
mailed. 
 
c. Nothing herein shall limit the rights of SRP to use any other available legal 
remedy to effect collection of said amounts. 
 
d. Municipality’s payment obligation hereunder shall not be conditioned upon 
reimbursement to Municipality by any third-party funding source. 
 
e. Following Municipality’s receipt of invoice for any subsequent changes to 
the Plans and/or Construction Bid Summary, Municipality shall have five 
business days to notify SRP in writing of any disputed amount contained in 
the invoice. 
 
f. Municipality’s failure to render timely payment in accordance with this 
paragraph shall be considered a material breach of this Agreement.  
  
9) Construction of Improvements by SRP.  SRP shall construct the irrigation 
modifications as selected in Paragraph 7, in accordance with the Plans and the 
Notice to Proceed for the benefit of Municipality with Municipality paying full 
cost, as provided in Paragraph 8.  SRP shall exercise diligence in completing the 
work stipulated in this Agreement; however, SRP shall not be liable for damages 
to any person, entity or party occasioned by delays of any type.  SRP reserves the 
right to fulfill all or any part of SRP’s obligations under this Agreement by 
subcontract.  Nothing herein shall be construed as establishing any contractual 
relationship between SRP’s subcontractor and Municipality. 
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10) Construction of Improvements by Municipality.  If Option A in Paragraph 7 is 
selected, Municipality shall construct modifications (except any work that must be 
performed by SRP) in accordance with the Contract Documents.  Grade and 
alignment of the pipe shall be established by SRP’s Survey Department, as shown 
on the Plans.  Municipality shall be responsible for protection of all surveying 
stakes/markers necessary for the construction and the cost for resurveys or re-
staking, if needed. 
 
11) Buy America Provision.  Municipality certifies that by performing the Work, SRP 
is not acting as a contractor for Municipality and that no federal funding subject to 
Buy America requirements will be used to reimburse SRP for the actual costs it 
incurs in performing the Work.   
 
OR 
 
Municipality shall inform SRP prior to commencement of the Work if the Work is 
subject to Buy America requirements.   In such case, the Parties shall comply with 
these requirements as follows:  
 
a. The Parties acknowledge that utility relocations in connection with Federal-aid 
highway program (FAHP) funded projects, as defined by the National 
Environmental Protection Act, are subject to 23 U.S.C. § 313; 23 C.F.R. § 635.410; 
and, as applicable, Section 70914 of the Infrastructure Investment and Jobs Act, 
Pub, L. 117–58 (“Buy America requirements”). 
 
b.  SRP agrees to use commercially reasonable efforts to comply with applicable 
Buy America requirements. 
 
c. If SRP is unclear regarding its obligations under this provision, SRP may seek 
clarification from Municipality by giving Municipality written notice of inquiry as 
soon as reasonably practicable after discovery of the issue.  Such requests are 
limited to only (i) the items SRP cannot find a source to make a qualifying Buy 
America purchase, (ii) items that SRP can find a source to make a qualifying Buy 
America purchase, but the lead time for such purchase may unreasonably impact 
the Project Schedule, and (iii) SRP is unable in good faith to determine whether the 
Buy America requirements apply to a particular item. Municipality will respond to 
the inquiry in writing within 5 working days. Municipality’s response will include 
Municipality’s recommendation to SRP on how to proceed, but Municipality will 
not direct SRP’s activities. SRP shall not be responsible for delays in performance 
to the extent caused by Municipality recommendations or delays in Municipality 
providing such recommendations. 
 
d. As soon as practicable following the execution of this Agreement, SRP will 
provide to Municipality a list of materials that do not comply with Buy America 
and an estimated cost of purchasing such materials.  Municipality will acknowledge 
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receipt of this statement but will not make judgment as to the validity of the 
statement. 
 
e. Municipality agrees, if it is determined that materials used are not in compliance 
with Buy America requirements, the maximum SRP liability will be no more than 
150 percent of the price attributable to the materials that are not in compliance with 
Buy America requirements; provided, however, that if SRP has sought clarification 
of the material requirement under the provisions of Paragraph (b) above, and has 
followed Municipality’s written recommendations, SRP shall have no liability. 
 
f. Municipality understands that SRP’s compliance with the Buy America Act may 
result in longer lead times for ordering materials, vendor-prescribed minimum 
purchase quantities, and higher material costs.  SRP will pass on to Municipality 
any additional costs it incurs as a result of SRP’s compliance with the Buy America 
Act, and SRP will not be liable for schedule delays caused by longer lead times.  If 
there is a minimum purchase quantity requirement, SRP shall deliver and transfer 
title to excess materials to Municipality at agreed locations within the Phoenix 
metropolitan area at no additional cost to Municipality. 
 
g. SRP shall not be responsible for delays caused by changes in the Project Design 
made by or at the direction of Municipality. 
 
12) Indemnification.  Municipality shall indemnify, hold harmless, release and defend 
District and Association and USA and each and every one of the members of their 
respective governing bodies, officers, agents, and employees (“Indemnified Parties”) 
from and against any and all claims, demands, suits, costs of defense, reasonable 
attorneys’ fees, witness fees of any type, losses, damages, expenses, fines, penalties, 
liabilities, environmental response, and cleanup costs (collectively, “Losses”) for 
injury to or death of any person or persons, including employees of SRP or of 
Municipality or its subcontractors, or damage to property, including property of SRP 
or of Municipality or its subcontractors, or the environment, to which the Indemnified 
Parties may be put or subjected by reason of any act or omission on the part of 
Municipality, any subcontractor or supplier of Municipality, or any of the directors, 
officers, partners, members, managers, agents, servants or employees of Municipality, 
or of its subcontractors or suppliers, involving hazardous or regulated substances.  
Municipality’s obligations under this Paragraph shall extend to Losses resulting from 
or arising out of the inability of any irrigation structure constructed or modified 
pursuant to this Agreement to contain or dispose of water entering the structure from 
a drainage facility owned, designed, maintained or operated by the Municipality, 
including any necessary environmental response and cleanup.  Municipality’s 
obligations under this Paragraph shall also extend to Losses resulting from or arising 
out of: (a) Municipality’s use or occupancy of the Licensed Property for the purposes 
contemplated by this License, including claims by third parties who are invited or 
permitted onto the Licensed Property by Municipality or by the nature of 
Municipality’s improvement or other use of the Licensed Property pursuant to this 
License, especially involving hazardous or regulated substances; (b) Municipality’s 
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failure to comply with or fulfill its obligations established by this License or by law, 
including environmental laws and regulations; and (c) delays in permitting or 
inspection caused by Municipality, SRP, the Association, or the United States, 
including those related to environmental compliance. Furthermore, Municipality’s 
obligations under this Paragraph shall extend to the Indemnified Parties where they, 
or any one of them, are allegedly concurrently negligent with Municipality, any 
subcontractor or supplier of Municipality, or any of the directors, officers, partners, 
members, managers, agents, servants or employees of Municipality, or of its 
subcontractors or suppliers, in causing or contributing to the liability causing event, 
including environmental contamination. Municipality shall also indemnify and hold 
harmless (and, upon notice so requiring from SRP, also defend) the Indemnified 
Parties for, from and against any and all Losses for contractual claims arising out of 
Municipality’s agreements with third parties, including those involving hazardous or 
regulated substances.  Further, Municipality releases SRP, the Association, and the 
United States from and waives any claims it may have, now or in the future, related 
to SRP’s performance hereunder or SRP's operation and maintenance of its Facilities, 
including claims for damages caused by delays in permitting or inspection, unless 
such claim results from SRP’s sole, exclusive negligence or willful action.  
Municipality understands and agrees that Municipality enters upon the property of 
SRP at Municipality’s own risk. The obligations of Municipality under this Paragraph, 
including the release of claims for damages caused by delays in permitting or 
inspection and the responsibility for environmental response and cleanup, shall 
survive the termination of this License. 
 
13) Municipality Obligations and Conditions.  If Option A in Paragraph 7 is selected, 
Municipality shall perform any Work not included in the Construction Bid Summary 
Section I and, if applicable, optional Section II and comply with following conditions: 
 
a. Municipality shall obtain such other licenses, permits, and agreements as 
required by any governing bodies having jurisdiction over the location which 
is the subject hereof. 
 
b. Construction shall not commence until receipt of SRP’s Notice to Proceed.  
 
c. Municipality shall notify the SRP inspector and request a dry-up if necessary 
to perform the Work. SRP cannot assure a dry-up, which may only be possible 
for brief periods and certain times of the year.  
 
d. Municipality represents and warrants that: 
i. All pipe used in the modification shall be manufactured and installed 
in accordance with SRP’s “Specification for Pre-Cast Concrete 
pipe.” 
ii. Municipality is qualified, fully authorized under law and has all 
licenses required by statute, rules and regulations, including tax 
licenses, contractor’s licenses and out-of-state contractor’s 
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taxpayers’ bonds and certificates, to perform the irrigation 
construction undertaken pursuant to the Contract Documents or 
shall contract with parties so qualified and licensed, and 
Municipality shall include applicable termination and compliance 
provisions from this Agreement in any subcontract or third party 
contract entered under this authorization. 
iii. Municipality shall comply with applicable federal, state, tribal and 
local laws, rules, regulations, executive orders, permits, reclamation 
policies and standards, and other authorizations. 
iv. The irrigation facilities shall be installed in conformance with all 
applicable safety standards and regulations and in a manner to avoid 
the creation of potentially dangerous conditions and harm to any 
person or property. 
e. Municipality warrants that construction shall conform to SRP plans and 
specifications and be free from defects in material, title and workmanship.  
If defect in materials, title or workmanship or other non-conformance with 
plans and specifications appears within one year from the date of SRP 
acceptance, and SRP so notifies Municipality within a reasonable time after 
its discovery, Municipality shall correct the non-conformity at 
Municipality’s sole cost and expense within thirty (30) calendar days of 
notice by SRP, unless correction of the non-conformity cannot reasonably 
be accomplished within 30 days, in which case Municipality shall 
commence correction efforts within 15 days of notice from SRP and 
diligently prosecute such efforts to completion.  If Municipality fails to 
correct the non-conformity within the time period specified by SRP, SRP 
may correct the non-conformity, and Municipality will pay for the cost of 
performing the Work. 
f. In the event the Municipality is unable to complete its Work, SRP shall have 
the right, but not be obligated, to complete the Work by whatever method 
SRP deems appropriate.  This includes providing or obtaining any labor, 
materials or equipment to perform any part of the incomplete Work or Work 
that must be redone.  The cost of completing the Work, along with 
reasonable administrative charges or other damages caused by delays in 
completing the Work shall be charged to Municipality. 
g. If Municipality performs any work at the Specified Facility, Municipality 
shall at all times keep the work area clean and remove all waste materials 
and rubbish, leaving the work area clear of all obstructions.  Prior to 
discontinuing work in an area, Municipality shall remove all tools and 
machinery owned or rented by Municipality, waste, surplus and other 
materials from the work area and shall leave the premises in a safe and clean 
condition.  Municipality shall dispose of refuse from the site in a landfill 
approved by SRP.  If Municipality fails to leave the premises in a safe and 
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clean condition, SRP may implement appropriate cleanup measures and 
invoice Municipality for the costs thereof.    
h. If Municipality performs any work at the Specified Facility, Municipality 
shall furnish a Material Safety Data Sheet as required by law in a format 
that complies with federal and state OSHA regulations.   
14) Preconstruction Conference and Construction Clearance.  If Option A in Paragraph 
7 is selected, SRP will notify Municipality that SRP is ready to issue the Notice to 
Proceed, and Municipality or Municipality’s Contractor shall contact SRP’s 
Inspector, as indicated on the Plans, to schedule a preconstruction conference.  Both 
Municipality and Municipality’s Contractor shall attend the preconstruction 
conference at the time and location determined by SRP.  The Notice to Proceed and 
a copy of the Plans shall be provided to the Municipality.  Municipality’s 
construction schedule, dry-up requirements, survey and staking requirements, and 
SRP’s requirements for obtaining a construction clearance will be discussed at the 
preconstruction conference.  Municipality understands and agrees that a dry-up of 
SRP facilities may take several weeks to schedule and may be impractical during 
certain times of the year.  It is Municipality’s responsibility to contact SRP’s 
Inspector sufficiently in advance of beginning construction to coordinate a dry-up.  
Municipality agrees to indemnify and hold harmless SRP for any delay claims 
associated with the availability of dry-ups.  Municipality’s contractor shall obtain 
a construction clearance from SRP’s Inspector at least seventy-two (72) hours 
before tart of construction.  Municipality understands that SRP cannot assure a dry-
up of the Facilities.   
 
15) Archaeological Resource Protection.  If an archaeological site is discovered during 
Municipality’s performance of any work at the Specified Facility, Municipality 
shall stop work immediately, protect the discovery, inform SRP of the discovery in 
writing within forty-eight (48) hours, and shall not resume Work until receiving 
SRP's written approval. Municipality shall, consistent with SRP’s policy, cooperate 
in performing archaeological mitigation measures.  Any mitigation measures that 
result in additional costs to SRP shall be added to the amount specified in Paragraph 
7 as due from Municipality.  Municipality shall make reasonable efforts to prevent 
the collection of artifacts on or near the Specified Facility. 
   
16) Changes.  Changes to the Plans may only be made by SRP.  SRP may make changes 
to Plans as it deems reasonably necessary.  SRP may also request that Municipality 
adjust construction schedules or relocate its materials, Facilities, or improvements 
at Municipality's cost to avoid material interference with SRP's operations.  SRP 
shall provide Municipality with prior written notice of any changes in costs and/or 
the construction schedule.  Municipality shall agree in writing to any changes in 
cost to the Municipality.  
 
a. If Option A in Paragraph 7 is selected, Municipality shall not make any 
deviations from the Plans without SRP’s prior written consent.  If 
Municipality desires to make a change in its Work, Municipality shall 
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request in writing, permission for such change from SRP.  If SRP agrees to 
the change and the change results in increased construction costs or changes 
in the construction schedule, Municipality and SRP shall agree in writing to 
an adjusted price or new completion date. 
 
b. If, while performing the work, SRP encounters unanticipated conditions 
that result in increased costs or delays, or if changes are necessary due to 
conditions caused by or as a result of actions taken or failed to be taken by 
Municipality that result in increased costs, Municipality shall be responsible 
for such costs.  Time permitting, and if the scope of work is known and can 
be estimated, SRP will submit an estimate of the cost for the work by SRP 
associated with any such condition to Municipality.  If time does not allow 
for an estimate to be prepared, or if the scope of work is unknown and 
cannot be estimated, Municipality’s authorized field representative will be 
notified, and SRP will do the work on an actual cost basis.   
 
17) Damages to Facilities.  If Option A in Paragraph 7 is selected, and if any Facilities 
are damaged by Municipality or Municipality’s contractor or subcontractor of any 
tier, Municipality, at Municipality’s expense, shall immediately repair the facilities 
to SRP’s satisfaction.  SRP reserves the right, depending on the nature and extent 
of damage, to make such repairs without prior notice to Municipality and invoice 
Municipality for all associated costs incurred by SRP.  Municipality shall pay all 
such invoices immediately upon receipt. 
 
18) Completion of Work.  When Work is completed, the improvements shall, upon the 
request of either party, be inspected by Municipality’s representative and SRP’s 
representative and, if applicable, certified as complete and acceptable by both 
parties. 
 
19) Removal of Improvements.  If Option A in Paragraph 7 is selected, and if SRP 
determines that Municipality’s improvements do not comply with the Plans or 
interfere with existing or future Facilities or electric facilities, Municipality shall 
remove, at Municipality’s sole cost and expense, within 90 days, or as otherwise 
specified by written notice from SRP, any improvements or installation 
Municipality or Municipality’s contractor placed on SRP’s right-of-way, and 
restore or replace, wholly or in part as determined by SRP, the irrigation facilities 
to SRP’s satisfaction.  If SRP determines that the irrigation facilities must be 
restored immediately for operational purposes, or if Municipality fails to take the 
required action(s) to SRP’s satisfaction within the time period specified in the 
notice, SRP may remove the installations from SRP’s right-of-way and restore and 
replace the irrigation facilities to SRP’s desired operational condition.  All costs 
and expense incurred (as solely and conclusively determined by SRP) in such 
removal, construction or restoration shall be paid by Municipality to SRP within 
ten (10) days after receipt of an invoice.  Municipality hereby releases the USA and 
SRP from any and all claims for damages that may result to Municipality or others 
by reason of such removal, construction or restoration. 
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20) Title to Improvements.  If Option A in Paragraph 7 is selected, and upon SRP’s 
acceptance of the work, all improvements by Municipality shall become the sole 
property of SRP.  Nothing herein shall be conveyed as conveying any title or 
interest to any person other than SRP.  Municipality shall ensure that no liens attach 
to any portion of the facilities as a result of Municipality’s modifications.  If any 
such lien arises, Municipality shall, promptly on demand of SRP and at 
Municipality’s expense, take any and all action necessary to cause such lien to be 
released or discharged.   If Municipality fails to cause such lien to be released or 
discharged within five days after SRP’s demand, SRP may satisfy the amount of 
the lien and invoice Municipality for all amounts (including SRP’s costs and 
expenses) incurred by SRP in satisfying the lien.  Any such amounts invoiced to 
Municipality shall be payable in accordance with the terms of Paragraph 8 of this 
Agreement.   
 
21) Non-Performance.  Absent extraordinary circumstances, if Municipality has not 
initiated construction within one year after the date of execution of this Agreement, 
this may be treated as abandonment, and SRP may terminate this Agreement.  If 
Municipality wishes to proceed with construction at a later date, Municipality shall 
apply for a new agreement and Notice to Proceed.  In the event construction has 
been initiated but not completed at the end of one year from the execution of this 
Agreement, or at the end of the time limits in a Temporary Irrigation Outage, and 
SRP determines that the Specified Facility must be partially or completely restored 
for operational purposes, SRP may take action as described in Paragraph 19 herein.  
In addition, SRP may terminate this Agreement. 
 
22) Time of Essence.  Time is of the essence of this Agreement. 
 
23) Termination.   
 
a. Prior to the commencement of any construction, Municipality may 
terminate this Agreement by giving SRP no less than seven days’ written 
notice.   
b. Prior to the commencement of any construction, SRP may terminate this 
Agreement (i) if Municipality fails to comply with terms of payment 
stipulated in the Contract Documents; (ii) if Customer fails to provide 
adequate rights-of-way as may be required by SRP; or (iii) in the event 
climatic conditions or irrigation demands require cancellation of the type of 
work involved for a period of time.  SRP shall give Municipality seven 
days’ written notice of termination when practicable.  In the event of 
termination for climatic conditions or irrigation demands, Municipality 
shall have the right to enter into an agreement with SRP upon the same 
terms and conditions as this Agreement, if within 90 days after the date of 
termination SRP determines that work can again be undertaken and gives 
notice to Municipality; provided Municipality must exercise such right to a 
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new agreement within seven days after the Municipality receives 
notification of such right from SRP.   
c. SRP may terminate this Agreement at any time if SRP determines that 
Municipality or its contractors, agents or representatives have committed a 
violation of any law, rule or regulation, including OSHA or other applicable 
safety regulations, and Municipality shall pay any costs of removal of 
removal of facilities or restoration of SRP’s facilities. 
d. After the commencement of construction, either Party or the USA may 
terminate this Agreement by providing no less than thirty (30) days’ written 
notice to the other Parties.  In the event the Municipality desires to terminate 
this Agreement prior to the completion of SRP’s work, Municipality shall 
reimburse SRP for the actual costs incurred as well as reasonable costs 
required to restore the facilities of SRP, the USA or the Association. 
e. SRP may terminate this Agreement by written notice to Municipality if 
Municipality fails to cure any default under this Agreement within one 
hundred twenty (120) days after Municipality’s receipt of SRP’s written 
notice specifying such default. 
 
24) Insurance.  Municipality shall maintain its customary insurance coverage, through 
its self-insurance program and/or supplementary contracts of insurance it deems 
necessary. 
 
25) No Waiver.  The failure of SRP to insist upon strict performance of any of the terms 
and conditions hereof, or its delay or failure to exercise any rights or remedies 
provided herein by law, or its failure to properly notify Municipality in the event of 
breach, shall not release Municipality from any of the obligations of this Agreement 
and shall not be deemed a waiver of any rights of SRP to insist upon strict 
performance hereof. 
 
26) Transactional Conflict of Interest.  This Agreement is subject to the provisions of 
ARIZ. REV. STAT. § 38-511. In addition, no member of Congress shall receive 
any share of or benefit from this Agreement. 
 
27) Expenditures and Transfer of Monies.  This Agreement is subject to the provisions 
of ARIZ. REV. STAT. § 42-17106. 
 
28)  Notices: 
 
If to Municipality: 
City of Chandler 
Mr. Ivan Magana 
P. O. Box 4008 
Chandler, AZ 85244-4008 
 
 
 
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If to SRP:  
SRP  
Attn: Christian Andrews, Manager 
Water Engineering and Transmission, MS SSW 303 
P.O. Box 52025 
Phoenix, Arizona 85072-2025 
 
29) Binding Agreement. This Agreement is binding upon the Parties hereto, and their 
respective successors and assigns. 
 
30) Data Protection.  All data, regardless of form, including originals, images and 
reproductions, prepared by, obtained by, or transmitted to SRP in connection with 
this Agreement is confidential, proprietary information owned by the Municipality.  
Except as specifically provided in this Agreement, SRP shall not disclose data 
generated in the performance of the services to any third person without the prior 
written consent of the Municipality, or its designee. 
 
31) Force Majeure.  No Party shall be considered to be in default in the performance of 
any of its nonpayment obligations hereunder if failure of performance is due to an 
uncontrollable force; provided, however, that payment obligations shall not be 
excused by force majeure. The term “uncontrollable force” shall mean any cause 
beyond the control of the Party affected, including but not limited to failure of 
facilities, flood, earthquake, tornado, storm, fire, lightning, pandemic, epidemic, 
war, riot, civil disturbance or disobedience, labor dispute, action or nonaction by or 
failure to obtain the necessary authorizations or approvals from any governmental 
agency or authority or the electorate, labor or material shortage, unusual delays in 
delivery, supply interruptions, delay attributable to the actions of any governmental 
or regulatory agency having jurisdiction over the project, sabotage, restraint by 
Court order or public authority, or any other factor beyond the reasonable control 
of a Party, and which by the exercise of commercially reasonable due diligence 
such Party shall be unable to overcome.  Nothing herein shall be construed so as to 
require either Party to settle any strike or labor dispute in which it is involved. Either 
Party rendered unable to fulfill any nonpayment obligation hereunder by reason of 
an uncontrollable force shall exercise due diligence to remove such inability and 
shall remedy such affected obligations within a reasonable time after the 
uncontrollable force ceases to exist. 
 
32) Governing Law and Venue. The Contract Documents shall be governed by and 
construed in accordance with the laws of the State of Arizona, without regard to 
conflict of law principles.  SRP and Municipality agree that any action, suit or 
proceeding arising out of or relating to the Contract Documents shall be initiated 
and prosecuted in a federal or state court of competent jurisdiction located in 
Maricopa County, Arizona, and the parties irrevocably submit to the jurisdiction 
and venue of such court. 
 
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33) Waiver of Jury Trial. In the event of a dispute involving the terms of this Agreement 
or an allegation of material breach by either Party, the Parties reserve all rights and 
remedies, arising by law or equity, but shall waive any right to demand a trial by 
jury in an action commenced in court with respect to any legal proceeding arising 
out of or relating to this Agreement. 
  
34) Attorney’s Fees.  Should either party sue to enforce its rights herein, the  prevailing 
party to litigation shall be entitled to reimbursement from the other party of its 
reasonable attorney’s fees and litigation costs and expenses, including witness fees 
of any kind, in an amount to be determined by the court, by arbitration if required 
by the court, or by agreement between the parties. 
 
35) Complete Agreement. This Agreement (encompassing all Contract Documents 
referenced herein) represents the entire agreement of the Parties and supersedes all 
negotiations, representations, prior discussions or preliminary agreements between 
the Parties. No statements, warranties or representations of any kind not created in 
this Agreement shall in any way bind the Parties. This Agreement can only be 
changed or modified by a writing signed by all of the Parties hereto. 
 
36) Amendment.  The Contract Documents may not be amended except by a written 
instrument executed by each party to this Agreement. 
 
37) Severability.  No term or provision of this Agreement that is determined by a court 
of competent jurisdiction to be invalid or unenforceable shall affect the validity or 
enforceability of the remaining terms and provisions of this Agreement. Any term 
found to be invalid or unenforceable shall be deemed as severable from the 
remainder of the Agreement. 
 
38) No Joint Venture, Partnership or Business Association.  This Agreement is not 
intended to constitute, create, give rise to, or otherwise recognize a joint venture, 
partnership or formal business association or organization of any kind, and the 
rights and obligations of the Parties shall be only those expressly set forth in this 
Agreement.  The Parties agree that no individual performing under this Agreement 
on behalf of SRP will be considered a Municipality employee, and that no rights of 
Municipality civil service, Municipality retirement or Municipality personnel rules 
shall accrue to such individual.  SRP shall have total responsibility for all salaries, 
wages, bonuses, retirement, withholdings, workers’ compensation, other employee 
benefits, and all taxes and premiums appurtenant thereto concerning such 
individuals and shall save and hold harmless the Municipality with respect thereto. 
 
39) Parties’ Compliance.    Each Party shall comply with all existing and subsequently 
enacted federal, state and local laws, ordinances, codes, and regulations that are, or 
become applicable to this Agreement.  
 
40) Rights of the United States.  This Agreement is subordinate to the rights and 
regulatory authority of the United States, federal reclamation law, and existing or 
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future agreements governing management of the reclamation project. If a 
subsequently enacted law imposes substantial additional costs on SRP, a request 
for an amendment may be submitted. 
 
41) No Assignment.  Neither SRP nor Municipality shall have the right to assign any 
rights or interest created herein without the prior written approval of the other Party, 
except that SRP may assign its interest in the Property and associated facilities to 
an affiliate or successor-in-interest without consent of Municipality. Any 
unauthorized assignment shall void this Agreement. 
 
 
 
 
 
 
 
 
 
IN WITNESS HEREOF, each Party has caused the execution of this Agreement by the 
undersigned, who is vested with authority to bind such Party to the terms and conditions 
herein. 
 
 
“SRP”  
Salt River Valley Project Agricultural 
Improvement and Power District and  
Salt River Valley Water Users’ 
Association:  
 
“Municipality” 
City of Chandler, an Arizona 
municipal corporation: 
 
 
______________________________ 
Christa McJunkin 
Sr. Director 
Water Supply & System 
 
 
 
 
 
______________________________  
Municipality Representative 
 
 
_08/11/2026___________________  
Date Signed 
 
 
 
______________________________ 
Title of Representative 
 
______________________________ 
Date Signed 
 
 
 
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EXHIBIT A 
Construction Bid Summary 
 
 
 
 
 
 
 
8/10/2026
SECTION I - Items by SRP
 
Item
Item Description
Unit
Quantity
Unit Bid
Net Bid
1.
Construction Engineering  - Survey, Inspection, & AsBuilts
LS
1
26,240
26,240
1.
60" CIPL
LF
734
1,119.42
1119
821,651
2.
48" CIPL
LF
155
895.53
896
138,808
3.
30" CIPL
LF
189
560
105,785
4.
24" CIPL
LF
178
447.77
448
79,702
5.
Remove and Replace Manhole tops
EA
2
109970
219,940
6.
Install Manhole
EA
1
139764
139,764
7.
Restore Sidewalk
LF
60
1142
68,540
                               SECTION  I  TOTALS
$0
$1,600,430
Summary:   
SECTION I   - Items by SRP
$1,600,430
NET BID =
$1,600,430
NOTES:
1.  Items listed in this Const. Bid Summary constitute a total bid which valid for 60 days and expires on:
October 9, 2026
2. All utility conflicts must be resolved and completed prior to the arrival of SRP Construction forces. 
3. Items, Restorations, and/or services not specifically listed in the details and quantities above are excluded. 
4. This Construction Estimate Bid Summary was prepared by SRP Water Construction.
SRP # 2200531
Ray Road and Dobson Road Improvements
Ray Road and Dobson Road Chandler
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EXHIBIT B 
 
Plans 
 
 
 
 
 
 
 
 
 
 
 
 
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ADDITIONAL TERMS AND CONDITIONS: 
•
This Agreement is subject to A.R.S. 38-511
For Customer (City of Chandler): 
Mayor Signature: 
Date: 
Authorized Signature: 
Date: 
Printed Name: Daniel Haskins, P.E. 
Title: CIP City Engineer 
Approved as to Form: 
Date: 
City Attorney 
Attest: 
Date: 
City Clerk 
Seal 
City Project No.: 
ST2103.507 
City Project Name: 
Ray Road and Dobson Road Intersection Improvements 
Council Date: 
September 17, 2026 
SRP Project Name: 
Ray Road and Dobson Road Intersection Improvements 
SRP File No.: 
2200531  
Job Location:  
Ray Road and Dobson Road  
Amount:  
$1,600,430 
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August 20, 2026