Extracted text (via pymupdf_layout)
36358 characters
RESOLUTION NO. 6041
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHANDLER,
ARIZONA, AUTHORIZING THE CITY TO ACCEPT LAND AND WATER
CONSERVATION FUND GRANT FUNDS IN AN AMOUNT NOT TO EXCEED
$750,000 FOR PIMA PARK PLAYGROUND IMPROVEMENTS; AND
AUTHORIZING THE CITY TO EXECUTE THE AGREEMENT AND TAKE
ACTION NECESSARY OR APPROPRIATE TO IMPLEMENT THE GRANT.
WHEREAS, the City of Chandler (the "City") received a Notice of Award for Seven Hundred Fifty
Thousand Dollars ($750,000) in federal Land and Water Conservation Fund ("LWCF") grant
funding for the Pima Park Playground Improvements project (the “Project”); and
WHEREAS, the LWCF grant requires an equal non-federal match for a total budget of One Million
Five Hundred Thousand Dollars ($1,500,000); and
WHEREAS, the Project budget consists of One Million Three Hundred Seventy-Five Thousand
Dollars ($1,375,000) for construction and One Hundred Twenty-Five Thousand Dollars
($125,000) for other allowable costs; and
WHEREAS, the period of performance is approximately October 1, 2026, through September 30,
2028; and
WHEREAS, the Project scope includes removing the existing playground at Pima Park, replacing
it with an adaptive play space, and installing new play surfacing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chandler, Arizona,
as follows:
Section 1. Authorizes the City to accept LWCF grant funds in an amount not to exceed
$750,000 for the Pima Park Playground Improvements project, in a form agreement
substantially as attached hereto as Exhibit "A."
Section 2. Acknowledges and authorizes the required non-federal matching share in the
amount of $750,000 and the total Project budget of $1,500,000.
Section 3. Authorizes the Mayor of the City of Chandler, or designee, to execute the grant
agreement and any other necessary documents, expend the funds, and take all
actions necessary or appropriate to carry out the purposes of this Resolution.
PASSED AND ADOPTED by the City Council of the City of Chandler, Arizona, this ____ day of
__________ 2026.
ATTEST:
______________________________ ______________________________
CITY CLERK MAYOR
Resolution No. 6041
Page 2
CERTIFICATION
I HEREBY CERTIFY that the above and foregoing Resolution No. 6041 was duly passed and
adopted by the City Council of the City of Chandler, Arizona, at a regular meeting held on the __
day of __________ 2026, and that a quorum was present thereat.
______________________________
CITY CLERK
APPROVED AS TO FORM:
______________________________
CITY ATTORNEY
EXHIBIT “A”
Katie Hobbs Bob Broscheid
Governor Executive Director
This Agreement is entered into by and between the Arizona State Parks Board (PRIME RECIPIENT) and The
City of Chandler (PROJECT SPONSOR/SUBGRANTEE/SUBRECIPIENT) which becomes effective on the date
of signature by the authorized representative of Arizona State Parks and Trails. Federal Notice of Award
numbered below is attached and made part of this Project Sponsor Agreement. Subgrantee is required to
comply with all applicable federal and state laws, regulations, guidelines, and manuals.
PROJECT TITLE: PROJECT NUMBER:
Pima Park Playground Improvements ASP # 04-00817
FAIN # P26AP01648
CFDA #: 15.916
THIRD PARTY PARTICIPANT’S NAME: FY OF REVENUE:
2027
PROJECT PERIOD:
10/01/2026 - 09/30/2028
GRANT PROGRAM: GRANT AMOUNT: % PARTICIPANT % TOTAL PROJECT COST:
Land and Water MATCH:
Conservation Fund $750,000.00 50% $750,000.00 50% $1,500,000.00
APPROVED SCOPE OF WORK
AND SPECIAL CONDITIONS: Attachment A and NPS Notice of Award
AUTHORITIES TO ENTER INTO THIS Agreement:
(statute, resolution, minutes, etc.)
STATUTE: A.R.S. §41- 518.01; A.R.S. §§ 41-511.04(6), (14), (18); A.R.S. § 41-511.05(2).
RESOLUTION: Need Signed Board/Council Resolution
AWARDING OFFICIAL ON
BEHALF OF THE ARIZONA
STATE PARKS BOARD: _______________________________________ ________________________
Signature Date
Kevin Brock
Assistant Director
ACCEPTANCE OF ALL TERMS OF THIS Agreement PARTICIPANT ATTORNEY APPROVAL AS TO FORM
AND ITS ATTACHMENTS IS ACKNOWLEDGED BY AND AS BEING WITHIN THE AUTHORITY OF THE
THE PROJECT SPONSOR’S SIGNATURE BELOW. PROJECT SPONSOR (optional)
Signatory Name/Title City Attorney
Date Date
The most recent version of the General Provisions based on the Project Sponsor and project type are attached and incorporated into this Agreement
Katie Hobbs Bob Broscheid
Governor Executive Director
Signatory 3/Title
Date
Katie Hobbs Bob Broscheid
Governor Executive Director
Arizona State Parks and Trails
PROJECT SPONSOR Agreement
Attachment A - Special Conditions
The BOARD is a primary recipient of Land and Water Conservation Fund (LWCF) grant funds provided by
the Department of Interior, National Park Service to ensure a sufficient quality and/or quantity of outdoor
recreation resources are available to serve the present and future outdoor needs of the public. This
Agreement is a sub-award of those federal, LWCF grant funds authorized under A.R.S. § 41-518.01.
SPECIAL CONDITIONS:
If any archeological remains are encountered during project related ground disturbance, work will cease in
the area of the discovery and the participant will inform the Director of the Arizona State Museum pursuant
to A.R.S. 41-844. The participant will then inform the Chief of Grant and Trails of the discovery to
determine any further action that may be necessary.
The area acquired and/or developed with LWCF grant assistance shall be available to the general public
for outdoor recreation use in perpetuity. Approved project work shall start no later than the specified
project startup date. Development activities must begin within 6 months of the fully executed participant
Agreement.
The subrecipient shall provide a boundary map prior to final reimbursement. The subrecipient will provide
NPS with information on the water tank / treatment enclosure to determine if a conversion incurred and
resolved to NPS’s satisfaction, including its service area, when it was first constructed, and if there are any
related easements or rights-of-way that would impact outdoor recreation at the park.
The administration of this grant Agreement is additionally subject to the contents of the Administrative
Guidelines found at:
https://www.azparkgrants.com/fileDownload.do?filename=1763406284454_ASPT_GrantsManual_2025+fi
nalized+11.4.2025.pdf
SUBRECIPIENT MONITORING:
Risk Assessment Score: Low
In accordance with state and federal regulations, ASPT is required to monitor subrecipients of grant funds
to ensure project success and compliance. This begins with a formal risk assessment which will be
administered through Webgrants at the time of application. The risk assessment will indicate a risk level
(low, medium, high) which will inform subrecipient monitoring processes.
Activity Low Risk Medium Risk High Risk
Desk Review Annually Semi-annually Quarterly
Spot Audit on 30-50% of 100% Review of all claim
Claim Review High level categories
claim documentation documentation
Status Reports Quarterly Bi-monthly Monthly
Site Visits None Once per grant cycle Annually
Single Audit Review + Follow up on Review + Technical Assistance
Review at application
Review Action Plan items on Findings
Katie Hobbs Bob Broscheid
Governor Executive Director
Regardless of risk designation, all subrecipients are required to submit full supporting documentation
(receipts, timesheets, proof of payment) with every reimbursement request. Incomplete packages will be
returned to the subrecipient for correction. This ensures that documentation is present should any issues
be identified in a high-level review even for low risk subrecipients.
Detailed Status Reports are required quarterly.
A minimum 50% in matching funds is required for reimbursement.
Recipients must comply with the requirements of the National Environmental Policy Act of 1969, Pub. L.
No. 91-190 (1970) (codified as amended at 42 U.S.C. § 4321 et seq.) (NEPA), Executive Order 14154
Unleashing American Energy (Jan. 20, 2025), Presidential Memorandum Ending Illegal Discrimination and
Restoring Merit-Based Opportunity (Jan. 21, 2025), the DOI’s NEPA-implementing regulations (43 CFR Part
46), DOI policy and procedures for implementing NEPA (Part 516 of the Departmental Manual), and NPS
LWCF Program-specific policies and procedures with includes the Council of Environmental Quality’s
rescinded regulations implementing NEPA, previously found at 40 C.F.R. Parts 1500-1508, as guidance to
the extent appropriate and consistent with the requirements of NEPA and Executive Order 14154.
OTHER CONDITIONS
Project costs above 10% of any line item must be approved by park staff prior to submitting that
reimbursement. Failure to request this change prior to submission will not be reimbursed.
Pre-Award Costs:
The Recipient is not authorized to incur pre-award costs.
All other terms and conditions remain unchanged.
Allocated project funds can only be expended on the designated scope items.
A. ADMINISTRATION
1. Conditions - This Agreement is subject to the availability of grant funds and appropriate
approvals, and is subject to the Constitution of the State of Arizona, the Arizona Revised Statutes, the
Arizona Administrative Code, other acts of the Arizona Legislature, executive orders of the Governor, and
the decisions and policies of the BOARD.
2. Incorporation of Application, Grant Manual, and Administrative Guidelines - The following
documents are incorporated by reference into this Agreement, which Agreement includes Attachments
A and B: The PROJECT SPONSOR'S grant application packet; the applicable grant manual; and the most
recent revision of the Administrative Guidelines for Awarded Grants. In the event of a conflict or
ambiguity, the terms of this Agreement and Attachments A and B to this Agreement must take
precedence.
3. Use of Grant Funds - Awarded grant funds must be used solely for eligible purposes of the
funding program, as defined by statute and as approved by the BOARD.
4. Transfer of Grant Funds - Awarded grant funds will be transferred to the PROJECT SPONSOR
according to the terms of this Agreement.
5. Grant Retention – Final reimbursement of the grant amount will be withheld from
payment until PROJECT SPONSOR has submitted their final status report and completion letter.
6. Grant Accountability - Grant funds must be managed separately within the PROJECT SPONSOR’S
accounting system that identifies the name and number of this project. The funds must only be expended
as authorized under the terms of this Agreement.
Katie Hobbs Bob Broscheid
Governor Executive Director
7. Accomplishment of Project - The project must be accomplished according to the terms of this
Agreement and applicable State laws.
8. Amendments - This Agreement may be amended in writing by the Parties of the Agreement upon
written request of the PROJECT SPONSOR, good cause shown, and approval by the BOARD. Eligible
amendments include adjustments to the project period, funding amount, or minor changes to the scope
items.
9. Use of Project - Project accomplishments must be open or available to the public in perpetuity.
If the grant funded capital improvements are not maintained and kept open for public use Arizona State
Parks may determine that a conversion is appropriate.
10. Special Conditions - Special conditions to this Agreement are binding upon and inure to the
benefit of the successors and assigns of each of the Parties to this Agreement. Breach of any condition
will be enforceable by any remedies available under applicable Federal or State law.
11. Conversion - No land or facilities acquired or developed with State assistance will, without the
approval of the BOARD, be converted to other than public use during the Term of Public Use. The
National Park Service and the BOARD will approve such conversion only if it finds the replacement
property to be in accord with the current grant statute. Conversions will require the substitution of
other properties of at least equal fair market value and of reasonably equivalent usefulness and
location, and concurrence of the landowner. The replacement property will then become subject to
this Agreement. In lieu of conversion, the PROJECT SPONSOR may apply for a declaration of
obsolescence. In the event the BOARD provides grant assistance for the acquisition and/or
development of real property subject to reversionary interests, with full knowledge of those
reversionary interests and with written notice of those reversionary interests, conversion of said
property to other than public uses as a result of such reversionary uses being exercised may be
approved. The PROJECT SPONSOR must notify the BOARD of the conversion as soon as possible and
seek approval of replacement property in accord with the conditions set forth in this
Agreement. The PROJECT SPONSOR must accomplish such replacement within a reasonable time,
acceptable to the BOARD, after the conversion of the property occurs. This paragraph also applies to (1)
leased properties acquired and/or developed with Fund assistance, where such lease is terminated prior
to its full term pursuant to lease provisions known and agreed to by the BOARD; and (2) properties
subject to other outstanding rights and interests known to and agreed to by the BOARD.
B. RELATIONSHIP OF PROJECT COSTS TO THE PROJECT PERIOD
Except for pre-Agreement costs approved by the BOARD, only those costs associated with approved
project work incurred during the project period will be eligible for reimbursement according to the terms
of this Agreement.
C. ACQUISITION
Values of property purchased with grant assistance must be appraised by an appraiser with active State
certifications according to the Uniform Standards of Professional Appraisal Practice. This appraisal must
be prepared within one year prior to the acquisition. Grant participation must be according to the grant
award amount, the approved market value, or the purchase price, whichever is less.
D. CARE AND DISPOSITION OF EQUIPMENT
Equipment purchased with grant funds to develop a project may remain in the possession of the PROJECT
SPONSOR for as long as the equipment is being used for eligible project work, at the sole discretion of
State Parks. State Parks reserves the right to claim equipment purchased under this Agreement when it
is no longer being used for the purpose for which it was purchased.
E. SUB-CONTRACTS
1. Sub-contracts awarded to accomplish the project must incorporate by reference, in each sub-
Katie Hobbs Bob Broscheid
Governor Executive Director
contract, the provisions of this Agreement. The PROJECT SPONSOR bears full responsibility for
acceptable performance under each sub-contract.
2. The PROJECT SPONSOR must pay when due any claim of a sub-contractor, employee,
independent contractor, or any other employed individual performing the approved work for services
pursuant to this Agreement.
3. Any sub-contract for employment by the PROJECT SPONSOR must be in writing and contain a
provision whereby a person so employed or with whom a sub-contract has been entered acknowledges
that the State of Arizona and the BOARD are not be liable for any costs, claims, damages, reimbursement,
or payment of any kind relating to such sub-contract.
F. PROJECT REPORTING, REVIEWS, AND ON-SITE INSPECTIONS
1. The PROJECT SPONSOR must submit a project status report not less than quarterly. The status
report will include, at a minimum, the following: (a) progress toward completing the approved scope of
work; and
(b) any problems encountered and solutions to problems regarding completion of the project. Failure to
submit the reports will result in delays in grant reimbursement or advance processing. The PROJECT
SPONSOR must consult with the BOARD, as needed, to review progress. The BOARD reserves the right to
review the progress of the project and to conduct on-site inspections, as applicable and as needed, at any
reasonable time during the project period or required Term of Public Use in order to assure compliance
with the terms of this Agreement.
2. The PROJECT SPONSOR must certify compliance with the Project Agreement every five years,
until the end of the Term of Public Use, on a form to be provided by the BOARD. In addition, on-site
inspections will be conducted periodically at the discretion of the BOARD. The following will be taken
into consideration during the inspection of properties that have been acquired or developed with grant
assistance: retention and use; appearance, and maintenance.
3. The PROJECT SPONSOR must provide the Board with written consent of the landowner to
conduct on- site inspections; failure to do so is a failure to keep or maintain the property for public use.
G. EARNED INTEREST ON ADVANCED FUNDS
Interest generated from funds advanced to the PROJECT SPONSOR during the project period must be
used to further the purposes of the specified project. Funds advanced, but not spent to complete the
project, must be returned to the BOARD at the completion of the project.
H. PRODUCT OR PUBLISHABLE MATTER OWNERSHIP
With written permission from the BOARD or Arizona State Parks, the PROJECT SPONSOR may use
products or publishable matter produced with grant assistance the BOARD will have nonexclusive license
to use and reproduce, without payment, such materials. The PROJECT SPONSOR must receive written
permission from State Parks prior to utilizing publishable material for commercial or public purposes.
This paragraph is not applicable to architectural or engineering plans produced with grant assistance.
I. FUND SOURCE RECOGNITION
The PROJECT SPONSOR must permanently and publicly acknowledge the grant program(s) that assisted
project accomplishments (including, but not limited to: final documents; audio-visual recordings;
photographs; plans; drawings; publications; advertisements; and project plaques). At a minimum, this
acknowledgment must include the following: "This program was financed in part (or in full) by a grant
from the (Federal Recreational Trails Program/State Lake Improvement Fund/ Off-highway Vehicle
Fund/ or Heritage Fund) administered by the Arizona State Parks.”
Katie Hobbs Bob Broscheid
Governor Executive Director
J. PROJECT COST VERIFICATION
The PROJECT SPONSOR must submit project expenditure documents to the BOARD or State Parks for
verification or audit purposes, upon request.
K. TRANSFER OF CONTRACTUAL RESPONSIBILITY
The PROJECT SPONSOR may transfer responsibilities under the terms of this Agreement to another
eligible participant, provided that approval has been granted by the BOARD in writing prior to the
transfer.
PART III – COMPLIANCE
A. ANTI-TRUST
Vendor and purchaser recognize that, in actual economic practice, overcharges from anti-trust violations
are borne by purchaser. Therefore, the PROJECT SPONSOR hereby assigns to BOARD any and all claims
for such overcharges.
B. ARBITRATION
In accordance with A.R.S. § 12-1518, the parties agree to resolve all disputes arising out of or relating to
this Agreement through arbitration, after exhausting applicable administrative review except as may be
required by other applicable statutes. Venue shall be in Maricopa County, Arizona.
C. APPLICABLE LAW
In accordance with A.R.S. §41-2501, et seq, and A.A.C. R2-7-101, et seq. Agreement shall be governed
and interpreted by the laws of the State of Arizona and the Arizona State Procurement Code.
D. NON-DISCRIMINATION
In accordance with A.R.S. § 41-1461, et seq, Agreement shall provide equal employment opportunities
for all persons, regardless of race, color, creed, religion, sex, age, national origin, disability or political
affiliation. PROJECT SPONSOR shall comply with all applicable provisions of the Arizonans with
Disabilities Act of 1992, A.R.S. § 41-1492, et. seq.;the Americans with Disabilities Act, (Public Law 101-
336, 42 U.S.C. 12101-12213 and 47 U.S.C. § 225 and 611); State of Arizona Executive Orders 2023-1,
2023-09, and 2009-09; and applicable state rules and federal regulations.
E. E-VERIFY
In accordance with A.R.S. § 41-4401, PROJECT SPONSOR warrants compliance with all Federal
immigration laws and regulations relating to employees and warrants its compliance with AAC section
A.R.S. § 23-214, Subsection A.
F. AUDIT AND RECORDS RETENTION
In accordance with A.R.S. § 35-214 and A.R.S. § 35-215, the PROJECT SPONSOR shall retain and shall
contractually require each subcontractor to retain all data, books and other records (“records”) relating
to this Agreement for a period of five years after completion of the Agreement. All records shall be subject
to inspection and audit by the State at reasonable times. Upon request, the PROJECT SPONSOR shall
produce the original of any or all such records.
G. CONFLICT OF INTEREST
In accordance with A.R.S. § 38-511, state or project sponsor may within three years after execution cancel
the Contract, without penalty or further obligation, if any person significantly involved in initiating
negotiating, securing, drafting or creating the Agreement on behalf of the State, at Agreement in any
capacity or a consultant to any other party of the Agreement with respect to the subject matter of the
Agreement.
Katie Hobbs Bob Broscheid
Governor Executive Director
H. REMEDIES
1. The BOARD may temporarily suspend grant assistance obligated to the PROJECT SPONSOR pending
required corrective action by the PROJECT SPONSOR or pending a decision to terminate the grant by the
BOARD.
2. The PROJECT SPONSOR may unilaterally terminate this Agreement at any time before the first
payment is made. After the initial payment, this Agreement may be terminated, modified, or amended by
the PROJECT SPONSOR only by written mutual Agreement of the Parties.
3. The BOARD may terminate this Agreement in whole or in part at any time before the date of
completion if it determines that the PROJECT SPONSOR has failed to comply with the terms or conditions
of the grant. The BOARD will promptly notify the PROJECT SPONSOR in writing of the determination and
the reasons for the termination, including the effective date. All payments made to the PROJECT
SPONSOR must be returned to the BOARD if this Agreement is terminated for cause.
4. The BOARD or PROJECT SPONSOR may terminate this Agreement in whole or in part at any time
before the date of completion when both Parties agree that the continuation of the development project
would not produce beneficial results commensurate with the further expenditure of funds. The two
Parties must agree upon the termination conditions, including the effective date and, in the case of partial
termination, the portion to be terminated. The PROJECT SPONSOR must not incur new obligations for the
terminated portion after the effective date and must cancel as many outstanding obligations as possible.
The BOARD may allow full credit to the PROJECT SPONSOR for the grant share of properly incurred
obligations that cannot otherwise be cancelled before the effective termination date.
5. The BOARD may require specific performance of the terms of this Agreement or take legal steps
necessary to recover the funds granted if the PROJECT SPONSOR fails to comply with the terms of the
grant or breaches any condition or special condition of this Agreement.
6. The BOARD may request and the PROJECT SPONSOR must deliver repayment of funds advanced
under this Agreement in conjunction with the remedies in this section.
7. The remedies expressed in this Agreement do not limit the rights of the BOARD. This Agreement
does not in any way abridge, defer, or limit the BOARD'S right to any right or remedy under law or equity
that might otherwise be available to the BOARD.
I. CULTURAL RESOURCES
The PROJECT SPONSOR must meet the requirements of the State Historic Preservation Act (A.R.S.
§41-861 to 41-864) before project initiation.
J. DISCLOSURE REQUIREMENTS
PROJECT SPONSOR must comply with the terms of A.R.S. § 35-181.03 or its successor statute(s)
regarding audited financial statements provided to the BOARD.
K. INDEMNIFICATION
Each party (as "Indemnitor") agrees to defend, indemnify, and hold harmless the other party (as
"Indemnitee") from and against any and all claims, losses, liability, costs, or expenses (including
reasonable attorney's fees) (hereinafter collectively referred to as "Claims") arising out of bodily injury
of any person (including death) or property damage, but only to the extent that such Claims which result
in vicarious/derivative liability to the Indemnitee are caused by the act, omission, negligence,
misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers. The
State of Arizona, Arizona State Parks Board (ASPB) is self-insured per A.R.S. 41-621.
In addition, should PROJECT SPONSOR utilize a contractor(s) and subcontractor(s) the indemnification
clause between PROJECT SPONSOR and its contractor(s) and subcontractor(s) shall include the
following:
Katie Hobbs Bob Broscheid
Governor Executive Director
To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify, and hold harmless the
State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials,
agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims,
actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim
processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or
personal injury (including death), or loss or damage to tangible or intangible property caused, or
alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Contractor or
any of its owners, officers, directors, agents, employees or subcontractors. This indemnity includes any
claim or amount arising out of, or recovered under, the Workers’ Compensation Law or arising out of
the failure of such CONTRACTOR to conform to any federal, state, or local law, statute, ordinance, rule,
regulation, or court decree. It is the specific intention of the parties that the Indemnitee shall, in all
instances, except for Claims arising solely from the negligent or willful acts or omissions of the
Indemnitee, be indemnified by CONTRACTOR from and against any and all claims. It is agreed that
CONTRACTOR will be responsible for primary loss investigation, defense, and judgment costs where
this indemnification is applicable. In consideration of the award of this contract, the CONTRACTOR
agrees to waive all rights of subrogation against the State of Arizona, its officers, officials, agents, and
employees for losses arising from the work performed by the CONTRACTOR for the State of Arizona.
L. INSURANCE REQUIREMENTS
PROJECT SPONSOR and sub-contractors must procure and maintain occurrence-based insurance policies
that cover claims for injury or death to persons or damage to property that may arise from or in
connection with the performance of the work hereunder by the PROJECT SPONSOR, its agents,
representatives, employees or sub-contractors.
The insurance requirements herein are minimum requirements for this Agreement and in no way limit
the indemnity covenants contained in this Agreement. The State of Arizona in no way warrants that the
minimum limits contained herein are sufficient to protect the PROJECT SPONSOR from liabilities that
might arise out of the performance of the work under this Agreement by the PROJECT SPONSOR, its
agents, representatives, employees or sub-contractors, and PROJECT SPONSOR is free to purchase
additional insurance.
Minimum Scope and Limits of Insurance: PROJECT SPONSOR shall provide coverage with limits of
liability not less than those stated below.
1. Commercial General Liability – Occurrence Form
Policy shall include bodily injury, property damage, personal injury and broad form contractual liability
coverage.
General Aggregate.................................................................................................................................. $2,000,000
Products – Completed Operations Aggregate............................................................................ $1,000,000
Personal and Advertising Injury...................................................................................................... $1,000,000
Blanket Contractual Liability – Written and Oral..................................................................... $1,000,000
Fire Legal Liability................................................................................................................................. $50,000
Each Occurrence..................................................................................................................................... $1,000,000
a. The policy shall be endorsed, as required by this written Agreement, to include the State of
Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and
employees as additional insureds with respect to liability arising out of the activities performed by or on
behalf of the PROJECT SPONSOR.
Katie Hobbs Bob Broscheid
Governor Executive Director
b. Policy shall contain a waiver of subrogation endorsement, as required by this written Agreement,
in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers,
officials, agents, and employees for losses arising out of the activities performed by or on behalf of the
PROJECT SPONSOR.
2. Business Automobile Liability
Bodily Injury and Property Damage for any owned, hired, and/or non-owned vehicles used in the
performance of this Agreement.
Combined Single Limit (CSL)............................................................................................................. $1,000,000
a. The policy must be endorsed to include the following additional insured language: “The State of
Arizona, its departments, agencies, boards, commissions, universities and its officers, officials, agents,
and employees shall be named as additional insureds with respect to liability arising out of the activities
performed by or on behalf of the NAMED INSURED involving automobiles owned, leased, hired or
borrowed by the NAMED INSURED."
b. Policy must contain a waiver of subrogation against the State of Arizona, its departments, agencies,
boards, commissions, universities and its officers, officials, agents, and employees for losses out of the
activities performed by or on behalf of the PROJECT SPONSOR.
3. Worker's Compensation and Employers' Liability
• Workers' Compensation Statutory
• Employers' Liability
Each Accident............................................................................................................................................. $500,000
Disease – Each Employee...................................................................................................................... $500,000
Disease – Policy Limit............................................................................................................................. $1,000,000
a. Policy must contain a waiver of subrogation against the State of Arizona, its departments, agencies,
boards, commissions, universities and its officers, officials, agents, and employees for losses arising out
of the activities performed by or on behalf of the PROJECT SPONSOR.
b. This requirement does not apply to: Separately, EACH PROJECT SPONSOR, contractor or sub-
contractor exempt under A.R.S. 23-901, and when such PROJECT SPONSOR, contractor or sub- contractor
executes the appropriate waiver (Sole Proprietor/Independent Contractor) form.
Additional Insurance Requirements:
The policies shall include, or be endorsed to include, as required by this written Agreement, the following
provisions:
1. The State of Arizona, its departments, agencies, boards, commissions, universities and its officers,
officials, agents, and employees shall be named as additional insureds wherever additional insured status
is required. Such additional insureds shall be covered to the full limits of liability purchased by the
PROJECT SPONSOR, even if those limits of liability are in excess of those required by this Agreement.
2. The PROJECT SPONSOR’S insurance coverage shall be primary insurance with respect to all other
available sources.
3. Coverage provided by the PROJECT SPONSOR shall not be limited to the liability assumed under
the indemnification provisions of this Agreement.
Notice of Cancellation:
Katie Hobbs Bob Broscheid
Governor Executive Director
Applicable to all insurance policies required within the Insurance Requirements of this Agreement,
PROJECT SPONSOR’S insurance shall not be permitted to expire, be suspended, be canceled, or be
materially changed for any reason without thirty (30) days prior written notice to the State of Arizona.
Within two (2) business days of receipt, PROJECT SPONSOR must provide notice to the State of Arizona
if they receive notice of a policy that has been or will be suspended, canceled, materially changed for any
reason, has expired, or will be expiring. Such notice shall be sent directly to the Department and shall be
mailed, emailed, hand delivered or sent by facsimile transmission to (State Representative’s Name,
Address & Fax Number).
Acceptability of Insurers
PROJECT SPONSOR’S insurance shall be placed with companies licensed in the State of Arizona or hold
approved non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized
Insurers. Insurers shall have an “A.M. Best” rating of not less than A- VII. The State of Arizona in no way
warrants that the above-required minimum insurer rating is sufficient to protect the PROJECT SPONSOR
from potential insurer insolvency.
Verification of Coverage:
PROJECT SPONSOR shall furnish the State of Arizona with certificates of insurance (valid ACORD form or
equivalent approved by the State of Arizona) evidencing that PROJECT SPONSOR has the insurance as
required by this Agreement. An authorized representative of the insurer shall sign the certificates.
1. All such certificates of insurance and policy endorsements must be received by the State before
work commences. The State’s receipt of any certificates of insurance or policy endorsements that do not
comply with this written Agreement shall not waive or otherwise affect the requirements of this
Agreement.
2. Each insurance policy required by this Agreement must be in effect at, or prior to, commencement of
work under this Agreement. Failure to maintain the insurance policies as required by this Agreement, or to
provide evidence of renewal, is a material breach of contract.
3. All certificates required by this Agreement shall be sent directly to the Department. The State of
Arizona project/contract number and project description shall be noted on the certificate of insurance.
The State of Arizona reserves the right to require complete copies of all insurance policies required by
this Agreement at any time.
Subcontractors:
PROJECT SPONSOR’s certificate(s) shall include all contractors and subcontractors as insureds under its
policies or PROJECT SPONSOR shall be responsible for ensuring and/or verifying that all subcontractors
have valid and collectable insurance as evidenced by the certificates of insurance and endorsements for
each subcontractor. All coverages for subcontractors shall be subject to the minimum Insurance
Requirements identified above. The Department reserves the right to require, at any time throughout the
life of the Agreement, proof from the PROJECT SPONSOR that its contractors and subcontractors have the
required coverage.
Approval and Modifications:
The Contracting Agency, in consultation with State Risk, reserves the right to review or make
modifications to the insurance limits, required coverages, or endorsements throughout the life of this
Agreement, as deemed necessary. Such action will not require a formal Agreement amendment, but may
be made by administrative action.
Exceptions:
In the event the PROJECT SPONSOR or subcontractor(s) is/are a public entity, then such public entity
shall provide a certificate of self-insurance. If the PROJECT SPONSOR of subcontract(s) is/are a State of
Arizona agency, board, commission, or university, none of the above shall apply.
Katie Hobbs Bob Broscheid
Governor Executive Director