782209 FINAL AGREEMENT WIND WARNING SYSTEM.PDF
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Arizona State Parks
1110 W Washington St, Phoenix, AZ 85007
PROJECT SPONSOR AGREEMENT
This Agreement is entered into by and between the Arizona State Parks Board (BOARD) and Maricopa
County, a political subdivision of the State of Arizona,(PROJECT SPONSOR) and shall become effective
on the date of signature by the authorized representative of Arizona State Parks.
PROJECT TITLE:
Lake Pleasant Wind Warning System
PROJECT NUMBER:
ASPT #: 782209
THIRD PARTY PARTICIPANT’S NAME:
FY OF REVENUE:
2022
PROJECT PERIOD:
All expenses and match to be submitted prior to 7/1/2025
GRANT PROGRAM:
State Lake
Improvement Fund
GRANT AMOUNT:
$620,791.00
%
93%
PARTICIPANT
MATCH:
$48,766.00
%
7%
TOTAL PROJECT
COST:
$669,557.00
APPROVED SCOPE OF WORK
AND SPECIAL CONDITIONS:
Attachment A & B
AUTHORITIES TO ENTER INTO THIS AGREEMENT:
(statute, resolution, minutes, etc.)
STATUTE: A.R.S. §5-382
RESOLUTION:
AWARDING OFFICIAL ON
BEHALF OF THE ARIZONA
STATE PARKS BOARD: _______________________________________ ________________________
Signature Date
Kevin Brock
Assistant Director
ACCEPTANCE OF ALL TERMS OF THIS
AGREEMENT AND ITS ATTACHMENTS IS
ACKNOWLEDGED BY THE PROJECT SPONSOR’S
SIGNATURE BELOW.
PARTICIPANT ATTORNEY APPROVAL AS TO
FORM AND AS BEING WITHIN THE AUTHORITY
OF THE PROJECT SPONSOR (optional)
__________________________________ _____________
Bill Gates, Chairman Maricopa County Date
Board of Supervisors
____________________________________________
Deputy County Attorney
ATTEST
____________________________________________
Clerk of the Board Date
The most recent version of the General Provisions based on the Project Sponsor and project type are attached and incorporated into this agreement.
Arizona State Parks
PROJECT SPONSOR AGREEMENT
Attachment A
Approved Project Scope and Special Conditions
PROJECT SPONSOR: Maricopa County
PROJECT TITLE: Lake Pleasant Wind Warning System
PROJECT NUMBER: 782209
PROJECT DESCRIPTION: The current wind warning system greater than 25 years old. Equipment
has become outdated, is showing signs of age related wear and tear, and newer, more up to date
technology is available to enhance and improve the overall warning system. Funding will be used to
replace the existing wind warning equipment to current technology standards and improve the overall
system by adding electronic signage to further provide warning information to the boating public.
APPROVED PROJECT SCOPE:
Personnel..………………………………………………………………………………. $ 16,416.00
Equipment………………………………………………………………………………. $226,378.00
Contractual……………………………………………………………………………...
$ 24,550.00
Construction…………………………………………………………………………….
$260,858.00
Contractor Charges…………………………………………………………………….. $114,189.00
Freight Charges………………………………………………………………………… $ 27,166.00
TOTAL: $669,557.00
DESCRIPTION AND SOURCE(S) AND AMOUNTS FOR APPROVED MATCH
No match is required. Maricopa County will provide $48,766.00 in volunteer, staff and/or cash match
for this project.
SPECIAL CONDITIONS:
The administration of this grant agreement is additionally subject to the contents of the “Administrative
Guidelines for Awarded Grants” found at:
https://azstateparks.com/gallery/0004/0010/F6798970FE68496D9EF5F9E6D32CA410/ASP_Board_Ag
enda_1-20-22.pdf
Project applications are submitted as “shovel-ready” and project activities must begin immediately upon
final execution of the project sponsor agreement.
Detailed status quarterly reporting in ASPT’s on-line system is required. Failure to provide these
reports when requested will result in points being deducted in future funding requests and project
funds being withdrawn. Failure to provide status reports when required may result in funds
being withdrawn. (End of September, December, March and June.)
See the General Provisions – Attachment B
OTHER CONDITIONS
Every payment obligation of the State under this Agreement is conditioned upon the availability of funds
appropriated or allocated for the payment of such obligation. If funds are not allocated and available for
the continuance of this Agreement, this Agreement may be terminated by the State in the event this
provision is exercised, and the State shall not be obligated or liable for any future payments or for any
damages as a result of termination under this paragraph.
Allocated project funds can only be expended on the designated scope items.
Arizona State Parks and Trails
GRANT PROJECT SPONSOR AGREEMENT
Attachment B
General Conditions Applicable to Project Grants
This Agreement applies to grants for motorized projects awarded pursuant to the Off-Highway Vehicle Program,
the Recreational Trails Program, Heritage Fund Program and State Lake Improvement Fund Program.
PART I – DEFINITIONS
For purposes of this Agreement:
A.
“Agreement” means the Grant Project Sponsor Agreement and its attachments.
B.
“AORCC” is the Arizona Outdoor Recreation Coordinating Committee. Together, AORCC and the Board
are “the Parties.”
C.
“BOARD” means the Arizona State Parks BOARD. Together, AORCC and the Board are “the Parties.”
D.
“Conversion” means the replacement of grant-funded facilities with new facilities that are of reasonably
equivalent usefulness and location as the original.
E.
“Eligible Costs” mean direct costs attributed to the project grant program, such as: 1) compensation of
hired employees for the time and efforts devoted specifically to the execution of the grant; 2) cost of
materials acquired, consumed, or expended specifically for the purposes of the grant; 3) equipment and
other capital expenditures; 4) other items of expense incurred specifically to carry out the participant
agreement; and 5) direct services furnished specifically for the grant program by other agencies. These
costs are identified by the PROJECT SPONSOR in the Estimated Project Cost Sheet that is submitted
with the Certified Application Form and application packet. The costs are then approved by the BOARD
or by an amendment to this Project Agreement. Generally, eligible costs are identified in the applicable
grant manual.
F.
“Facilities” mean capital improvements.
G.
“Fund” means the Federal Recreational Trails Program.
H.
“Guidelines” mean the Administrative Guidelines for Awarded Grants and any other applicable program
directives adopted by the BOARD.
I.
“Ineligible Costs” are those costs incurred for a common or joint purpose benefiting more than one cost
objective and not readily assignable to the cost objectives of the project.
J.
“Match” includes cash, in-kind contributions, or donations, including volunteer time or materials
contributed to the project with no intention of reimbursement.
K.
“Obsolescence” means that an area or facility may be determined obsolete during the Term of Public Use
if (1) reasonable maintenance and repairs are not sufficient to keep the facility or equipment operating; (2)
changing needs dictate a change in the type of facilities or equipment provided; (3) operating practices
dictate a change in the type of facilities or equipment required; or (4) the facility or equipment is
destroyed by fire, natural disaster, or vandalism. Declaring the facility obsolete means that the PROJECT
SPONSOR receives a waiver of the replacement requirements. No later than 90 days after a facility or
equipment is taken out of public use, the PROJECT SPONSOR may request a waiver of repayment or
replacement requirements in writing. A determination of obsolescence may be made at the sole discretion
of the
BOARD.
L.
“PROJECT SPONSOR” means an eligible applicant that has been awarded a grant to develop a project or
coordinate an education program.
M.
“Project” means the sum of the activities identified with specific costs in the grant application packet that
are eligible under the referenced grant application manual and have been approved by the BOARD.
N.
“Project Period” means the period of time during which all approved work and related expenditures
associated with development of the project are to be completed by the PROJECT SPONSOR.
O.
“Repayment” means returning grant money to the Fund in the event the PROJECT SPONSOR expends
advanced funds for ineligible costs or fails to expend the advanced funds for eligible project costs during
the term of this grant.
P.
“Sub-contract” means an Agreement/contract between the PROJECT SPONSOR and another individual
or entity whereby labor, work, services, or other responsibilities are supplied or performed in furtherance
of the PROJECT SPONSOR’S responsibilities under this Agreement
Q.
“Term of Public Use” means the time required for public use. The Term of Public Use of the grant-
assisted facilities must be at least:
1. Equipment (personal property) grant investment of more than $50,000 per item: 25 years
2. Facilities (real property): 25 years
3. Land: 99 years unless obsolescence applies. The Term of Public Use will begin on the date of
completion identified in the Completion Certification Letter.
PART II – PERFORMANCE
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: 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. Staff will not process reimbursements requests for less than
$1,000 unless it is the final request.
5. Grant Retention - Ten percent (10%) of the grant amount will be retained from reimbursement until
Staff notifies the PROJECT SPONSOR in writing that the project is officially closed and completed.
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.
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 as specified in the
Term of Public Use. If the grant funded capital improvements are not maintained and kept open for public
use for the term specified in the Term of Public Use, the PROJECT SPONSOR must refund to the
BOARD the awarded grant amount within six (6) months of the date the improvements are no longer
maintained or kept open for public use, unless the BOARD agrees that obsolescence or 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
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. Combined pre-agreement and design and engineering costs must not exceed 10% of the
approved grant award.
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-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 administered by the Arizona State Parks.”
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 parites agree to resolve all dsiputes arising out of or relating to
this Agreement through arbitration, after exhausting applicable administrative review execpt as may be
requied by other applicable statutes. Venue shall be in Maricopa County, Arizona.
C. APPLICABLE LAW
In accordance with A.R.S. § 51-2501, 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 opportunites 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. and the Americans with Disabilities Act, (Public Law
101-336, 42 U.S.C. 12101-12213 and 47 U.S.C. § 225 and 611), and applicable state rules and federal
regulations under the Acts
E. E-VERIFY
In accordance with A.R.S. § 41-4401, PROJECT SPONSOR warrants compliance with all Federal
immigaration 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, 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.
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.
K. 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.
L. 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 selfinsured 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:
To the fullest extent permitted by law, sub-contractor shall defend, indemnify, and hold harmless the
PROJECT SPONSOR and the State of Arizona, and any jurisdiction or agency issuing any permits for
any work arising out of this Agreement, 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 the contractor or
any of the directors, officers, agents, or employees or subcontractors of such contractor. 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 such contractor from and against any and all claims. It is agreed that
such contractor will be responsible for primary loss investigation, defense and judgment costs where this
indemnification is applicable. Additionally on all applicable insurance policies, contractor and its
subcontractors shall name the State of Arizona, and its departments, agencies, boards, commissions,
universities, officers, officials, agents, and employees as an additional insured and also include a waiver
of subrogation in favor of the State.
M. 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.
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 from work 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 PROJECT SPONSOR, involving automobiles owned, leased, hired or
borrowed by the PROJECT SPONSOR."
b. Policy must contain a waiver of subrogation against the State of Arizona, as departments, agencies,
boards, commissions, universities and its officers, officials, agents, and employees for losses arising from
work 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
from work performed by or on behalf of the PROJECT SPONSOR.
b. This requirement does not apply to: Separately, EACH PROJECT SPONSOR or sub-contractor exempt
under A.R.S. 23-901, and when such PROJECT SPONSOR 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 wherever additional insured status is required. Such additional
insured 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:
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 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 subcontractos 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 the Insurance
Requirements shall not apply. 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.