Agreement

City of Glendale — Regular Meeting (2026-01-13)

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LINKING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
SAFETY-KLEEN SYSTEMS, INC.

This Linking Agreement (“Agreement”) is entered into as of this day of , 2026, between the
City of Glendale, an Arizona municipal corporation (“City”), and Safety-Kleen Systems, Inc., a Wisconsin
corporation, authorized to do business in Arizona (“Contractor”), collectively, the “Parties.”

RECITALS

A. On December 1, 2025, the Arizona Department of Transportation, a member of the State of Arizona
Procurement Office, entered into a contract with Contractor to purchase the goods and services
described in the Used Automotive Fluid Removal and Collection Services Contract No. CTRO79549
(“Cooperative Agreement”), which is attached hereto as Exhibit A. The Cooperative Agreement
allows its cooperative use by other governmental agencies, including the City.

B. Section 2-149 of the City’s Procurement Code permits the Finance Director to procure goods and
services by participating with other governmental units in cooperative purchasing agreements when
the best interests of the City would be served.

C. Section 2-149 also provides that the Finance Director may enter into such cooperative agreements
without meeting the formal or informal solicitation and bid requirements of Glendale City Code
Sections 2-145 and 2-146.

D. The City wishes to contract with Contractor for supplies or services identical to those being provided
to other units of government under the Cooperative Agreement. Contractor consents to the City’s
cooperative use of the terms and conditions of the Cooperative Agreement, and agrees to provide
the supplies and services set forth in the Statement of Work appended hereto as Exhibit B.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated by reference, and
the covenants and promises contained in this Linking Agreement, the parties agree as follows:

1. Term of Agreement.

A. As provided in the Cooperative Agreement, purchases can be made by governmental entities
from the date of award, which was December 1, 2025, until the date the contract terminates
on November 31, 2026, unless the term is extended by mutual agreement of the parties to
the Cooperative Agreement. The Cooperative Agreement, however, may not be extended
beyond November 31, 2030. The initial period of this Agreement is the period from the
Effective Date of this Agreement until November 31, 2026.

B. The City may extend the term of this Agreement for for a maximum of forty-eight (48)
months if the Cooperative Agreement is likewise extended and the City gives the Contractor
notice that it is exercising its option to extend this Agreement 30 days prior to the anniversary
of the Effective Date. Glendale extensions are not automatic and shall only occur if the City
affirmatively exercises its right to extend this Agreement.

1
01/28/2025

Scope of Work; Terms, Conditions, and Specifications.

A. Contractor shall provide City the supplies and/or services identified in the Scope of Work
attached as Exhibit B.

B. Contractor agrees to comply with all the terms, conditions and specifications of the
Cooperative Purchasing Agreement. Such terms, conditions and specifications are
specifically incorporated into and are an enforceable part of this Agreement.

Compensation.

A. City shall pay Contractor compensation at the same rate and on the same schedule as
provided in the Cooperative Purchasing Agreement, which is attached hereto as Exhibit C.

B. The total purchase price for the supplies and/or services purchased under this Agreement
shall not exceed four hudred thousand dollars ($400,000) for the entire term of the
Agreement (initial term plus any extensions).

Cancellation. This Agreement may be cancelled pursuant to A.R.S. § 38-511.

Non-discrimination. Contractor must not discriminate against any employee or applicant for
employment on the basis of race, color, religion, sex, national origin, age, marital status, sexual
orientation, gender identity or expression, genetic characteristics, familial status, U.S. military veteran
status or any disability. Contractor will require any Sub-contractor to be bound to the same
requirements as stated within this section. Contractor, and on behalf of any subcontractors, warrants
compliance with this section.

Insurance Certificate. A certificate of insurance applying to this Agreement must be provided to the
City prior to the Effective Date.

E-verify. Contractor complies with A.R.S. § 23-214 and agrees to comply with the requirements of
ARS. § 41-4401.

No Boycott of Israel. To the extent A.R.S § 35-393 through § 35-393.03 are applicable, the parties
hereby certify that they are not currently engaged in, and agree for the duration of the Agreement to
not engage in, a boycott of goods or services from Israel, as that term is defined in A.R.S § 35-393.

Uyghur Forced Labor Prevention Act (UFLPA). Contractor certifies that it does not currently, and

during the term of this Agreement, will not use:
a. the forced labor of ethnic Uyghurs in the People’s Republic of China;

b. any goods or services produced by the forced labor of ethnic Uyghurs in the People’s
Republic of China; and

c. any contractors, subcontractors or suppliers that use the forced labor or any goods
or services produced by the forced labor of ethnic Uyghurs in the People’s Republic
of China.

01/28/2025

10. Stati iance. When applicable, the Contractor will provide the City annually with
a Payment Card Industry Data Security Standard (PCI DSS) attestation of compliance certificate
signed by an officer of Contractor with oversight responsibility.

11. Notices. Any notices that must be provided under this Agreement shall be sent to the Parties’
respective authorized representatives at the addtess listed below:

City of Glendale

c/o Sandy Ressler - Fleet Management
6210 W. Myrtle Avenue

Glendale, AZ 85301

and

Safety-Kleen Systems, Inc.
¢/Patrick Church

6625 W. Frye Road
Chandler, AZ 85226

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year set
forth above.

“City” “Contractor”
City of Glendale, an Arizona Safety-Kleen Systems, Inc.
tounicipal corporation a Wisconsin corporation,
By: By: a
Patrick S. Banger Name: Shaynn Mahan O
City Manager Title: Senior VP of Sales
ATTEST:
Julie K. Bower (SEAL)
City Clerk
APPROVED AS TO FORM:
Michael D. Bailey
City Attorney
3

01/28/2025

LINKING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
SAFETY-KLEEN SYSTEMS, INC.

EXHIBIT A
STATE OF ARIZONA-ADOT
CONTRACT NO. CTR079549
USED AUTOMOTIVE FLUID REMOVAL AND COLLECTION SERVICES

Docusign Envelope ID: 0F31BE60-28CA-491D-ADB1-B547E741F4D8
APriae*

uNGEOStRCion OFFER AND ACCEPTANCE ©

TRANSPORTATION

OFFER
TO THE STATE OF ARIZONA:

The undersigned hereby offers and agrees to perform in compliance with all terms, conditions, specifications and
amendments of this solicitation and any written exceptions in the Offer. Signature also acknowledges receipt of all pages

indicated in the Table of Contents.
Secfe-hy- Kleen Sustry, Tints Me WHE
C4 Offeror (Cémpany) Ndme ° vt © Date*

Printed Name and Title

Address
Netwell, MA, 0206 | Svp & Sales
City, State, Zip Title
leghamr.Iecnacd@ satel hlen.tom leenacd Leapk Busanes 5 DevelyrereAd Rep
Email Address % Contact Name and Title

CD By checking this box, Offeror is certifying that it is Jnplen.lecnned Asefehasklenn.cuer  7¥'1-427- Fol
exempt from the requirements regarding the forced Contact Email Address Jo Contact Phone Number
labor of ethnic Uyghurs and boycott of Israel because of
one of the following: Contractor is a Sole proprietorship,
has fewer than ten (10) employees; or is a non-profit
organization.

CERTIFICATION: By signature in the above, Offeror certifies that it:

1. Will not discriminate against any employee or applicant for employment in violation of any Federal anti-discrimination laws, rules,
regulations or executive orders, [Arizona] State Executive Orders 2023-09, 2023-01, 2009-09 or A.R.S. §§ 41-1461 through 41-
1465;

2. Has not given, offered to give, nor intends to give at any time hereafter any economic opportunity, future employment, gift, loan,
gratuity, special discount, trip, favor, or Service to a public servant in connection with the submitted offer. Failure to provide a
valid signature affirming the stipulations required by this clause will result in rejection of the Offer. Signing the Offer with a false
statement will void the Offer, any resulting contract, and may be subject to legal penalties under law;

3. Complies with A.R.S. § 18-132 when offering electronics or information technology products, Services, or maintenance;

4. Has submitted this Offer as a firm offer for 180 days following the Solicitation due date and time per the Instruction to Offerors.
Any extensions to the Offer Acceptance Period shall be made in accordance with A.A.C. R2-7-C31 0;

5. Did not and will not involve collusion or other anti-competitive practices; and

6. Is not debarred from, or otherwise prohibited from, Participating in any contract awarded by federal, state, or local government;

7. Does not participate in, and agrees not to participate in during the term of the contract, a boycott of Israel in accordance with

A.R.S. § 35-393 et seq. (Uniess exempt)
8. Does not participate in the use of forced labor of ethnic Uyghurs as described in A.R.S. § 35-394. (Unless exempt)

ACCEPTANCE OF OFFER

The offer is hereby accepted.
The Contractor is now bound to sell the Materials or Services listed by the attached Contract and based upon the Solicitation, including

all terms, conditions, specifications, amendments, etc., and the Contractor's Offer as accepted by the State.

The Contract shall henceforth be referred to as Contract No. CTRO79549

The Contractor is cautioned not to commence any billable work or to provide any Material or Service under this Contract until
Contractor tor receives purchase order, contract release document, or written notice to proceed.

State of Arizona Awarded this 19 day of November DocuSigned by: 2025

Procurement Manager
Procurement officer signature

Solicitation No: BPM007067 | Available online at Page 1 of 1

Ltn alma me wars

LINKING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
SAFETY-KLEEN SYSTEMS, INC.

EXHIBIT B
Scope of Work

Used automotive fluid collection and removal services for the Field Operations Department, on an as-
needed basis.

ARIZONA "ARTMENT. OF TRAN
ARIZONA DEPARTMENT OF TRANSPORTATION

— DEPARTMENT OF — 1655 W. Jackson St., MD 100P
TRANSPORTATION Phoenix, AZ 85007

INVITATION FOR BID

SOLICITATION NUMBER: BPM007067
DESCRIPTION: Used Automotive Fluid Removal and Collection Services

QUESTIONS: Inquiries regarding the solicitation are to be submitted online through the State’s e-Procurement
system, Arizona Procurement Portal (APP) (https://app.az.gow/) using the Discussion Forum tab.

OFFERORS ARE STRONGLY ENCOURAGED TO READ THE ENTIRE SOLICITATION.

Kim Matura

Procurement Officer
Phone: 602-712-7686
Email: kmatura@azdot.gov

This solicitation is issued in accordance with A.R.S. §41-2533 and A.A.C. R2-7-B301 et seq., Competitive Sealed Bidding.

“An Equal Opportunity Agency’

The Arizona Department of Transportation, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252.42
U.S.C. §§ 2000d-4) and the Americans with Disabilities Act (ADA), hereby notifies all bidders that it will affirmatively ensure that any
contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to
submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, national origin in
consideration for an award.

Persons that require a reasonable accommodation based on language or disability should contact ADOT’s Procurement Office b y phone
(602) 712-7466. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation.

Las personas que requieran asistencia (dentro de lo razonable) ya sea por el idioma o discapacidad deben ponerse en contacto con
ADOT (602) 712-7466.

Rev. 03/2025

ARIZONA TABLE OF CONTENTS

TRANSPORTATION

SECTION PAGE
Notice 1
Table of Contents 2
Scope of Work 3
Special Terms and Conditions 6
Uniform Terms and Conditions 18

EXHIBITS
1- Title V/Non-Discrimination Assurances Appendix A 36
2 - Title V/Non-Discrimination Assurances Appendix E 37
3-— ADOT and DPS Shop Locations 39
4-ADC Shop Locations 40
5 —ADC Prison Security Requirements 41
6 — Rules for Non-Employees for Arizona State Prison 43
7 — ADOT Usage Report 44

Solicitation No: BPM007067 Available online at

https ://app.az.gow

Page 2 of 40

—~ DEPARTMENT OF —
TRANSPORTATION

1. Statement of Need
1.1. The State of Arizona, its Agencies, Boards and Commissions (State) as well as
Participating Members of the State Purchasing Cooperative (Cooperative), has a
requirement for Used Automotive Fluid Collection and Removal Service.

2. Introduction and Background
2.1. Used materials to be collected and disposed of under this contract shall include, but
are not limited to the following:
2.1.1. Motor Oils
2.1.2. Oil Filters (canister type or spin on) Stored in 55 gallon drum
2.1.3. Transmission Fluids
2.1.4. Used/Spent Anti-Freeze
2.1.5. Non-Hazardous Contaminated Fuels
2.1.6. Sump Materials (Non Hazardous back waste, etc.)
2.1.7. Miscellaneous Automotive Lubricants (Such as lubricants that are able to be
pumped, ie. Grease)
2.1.8. Filters, any metal canister type
2.1.9. Oily rags (Non Hazardous) (Stored in 55 gallon drum)
2.1.10. Drums (steel and plastic)
2.1.10.1. | Approved DOT 55 gallon drums
2.1.10.2. _ Un-approved DOT 55 gallon drums

3. General Requirements

3.1. The Contractor shall hold and maintain all Federal, State and local (county and
municipal) licenses, permits and identification numbers required for the successful
performance under this contract.

3.2. The Contractor shall package, remove, transport and recycle/dispose of the
materials specified in accordance with all Federal, State, Local (county and
municipal) laws, ordinances and regulations. These would include, but may not be
limited to Title 40 and Title 49, Code of Federal Regulations (CFR), latest revision
and A.R.S. §49-802 and §49-803, latest revision.

3.3. The Contractor shall assume ownership and liability of all non-hazardous materials
at point of pick-up. In the event of materials spilled, the Contractor shall provide the
required notice to proper authorities. All costs associated with the clean-up shall be
the responsibility of the Contractor.

3.4. The Contractor shall provide all labor, materials (i.e. containers, loading and
pumping equipment) and services required. Containers shall provide secondary
containment, a sight glass, guage, or similar mechanism to clearly show the fluid
level and shall be compatible with the fluid being stored.

3.5. The Contractor shall provide 55 gallon drums for storage, removal, and transport of
oil filters at the time of service, with no additional cost to the Eligible Agency.

3.6. The Contractor shall utilize only transfer facilities who are in strict compliance with
all applicable federal, state and local environmental regulations (i.e. facilities,
structures or areas where materials such as oil are stored and would be held for
longer than 24 hours, but no longer than 35 days. Examples; loading docks and
parking areas).This shall be in accordance with all applicable regulations, these
would include but are not limited to Code of Federal Regulations (CFR), Title 40,
Part 260, and A.R.S. Title 49 Chapter 4, Article 7.

Solicitation No: BPM007067 Available online at Page 3 of 40
https :/app.azgow

ARIZQANA Scope of Work

— DEPARTMENT OF —
TRANSPORTATION

4. Specific Requirements

4.1,

4.2.

4.3.

4.4.

4.5.

4.6.

The Contractor shall provide routine scheduled services as well as non-
routine/emergency services. Delivery and pick-up shall occur Monday through
Friday, between the hours of 8:00 am and 3:00 pm local time, unless otherwise
specified by the Eligible Agency. No work shall be performed on weekends or State
Holidays without prior written approval from the Eligible Agency.

The Contractor shall provide the Eligible Agency with all associated paperwork,
including a bill of lading or packing list for each specified lot. Each bill of lading or
packing list shall contain, at a minimum, the material type, quantity, lot number,
tracking and identification numbers such as the Environmental Protection Agency's
12 digit |.D. number (if different from the lot number).

Routine Scheduled Services: The Contractor shall provide routine pick up
services for Eligible Agencies, as requested by the Eligible Agency. Scheduling
timeframes must be mutually agreed upon by the Contractor and Eligible Agency.
Eligible Agencies may request the scheduled timeframes in writing.

Non-routine/Emergency Services:

4.4.1. The Contractor shall provide non-routine/emergency services on an on-call

basis.

4.4.2. Non-routine services shall be provided within three (3) business days of

notification, unless otherwise indicated by the Eligible Agency.

4.4.3. In the event of an emergency service, the Contractor shall make every effort to

provide services to the Eligible Agency within 24 — 48 hours of notification.

Pre-Removal Material Testing Services:

4.5.1. Upon request by the Eligible Agency, the Contractor shall provide pre-removal

“field testing” services for specific lots of materials to verify material status as
hazardous or nonhazardous.

4.5.2. All tests shall be performed in accordance with all applicable Federal, State and

local (county and municipal) laws and regulations. These would include, but may
not be limited to EPA/SW-846 and AR.S. §49-801 et. seq.

4.5.3. Copies of all test results shall be provided to the Eligible Agency.
4.5.4. In the event of Non-Hazardous Lot Test Results, the Contractor shall continue

with the task of packaging, removing, transporting and disposing of materials.

4.5.5. In the event of Hazardous Lot Test Results, the Contractor shall cease work and

inform the Eligible Agency.

Pickup Locations: Pickup locations vary throughout the state for all Eligible
Agencies. Exhibit 3, ADOT Equipment Services Shops and (Department of Public
Safety) DPS Shop Locations. Exhibit 3, Arizona Department of Corrections (ADC)
shop locations are listed for informative purposes only as it relates to those
Agencies.

5. Contractor’s Responsibilities

5.1. The Contractor’s equipment shall comply with all applicable federal, state and local
laws, statutes, ordinance, rules and regulations, and the acts, codes, orders and
decrees of any administrative bodies, councils or tribunals.

Solicitation No: BPM007067 Available online at Page 4 of 40

https ://app.az.gqow

ARIZONA _ scope of Work

— DEPARTMENT OF --~
TRANSPORTATION

5.2. The Contractor shall have the ability to ensure acceptable performance under a
statewide contract. This includes the ability to create and manage numerous
individual accounts for order placement, billing and reporting purposes.

5.3. The Contractor shall have transportation and capacities sufficient to meet statewide
customer demand and contract requirements as stated in the scope of work.

5.4. The Contractor shall adhere to all ADC requirements as applicable while performing
work on certain ADC facilities. These rules are outlined in Exhibit 5 ADC Prison
Security Requirements, and Exhibit 6 Rules for Non-Employees of ADC in Arizona
State Prisons Form. These ADC requirements are subject to change at the
discretion of ADC.

5.5. Purchasing Card Surcharges: In the event the contractor charges a surcharge for
use of purchasing card (P-card) transactions, it shall be in accordance to the Offer
Response Form. Any P-card surcharges must be noted on any quotes and all final
invoices as a separate line item.

6. Department’s Responsibilities
6.1. The Eligible Agencies may provide direction to the Contractor as necessary to
prepare and complete the deliverables as required within the scope of work.
6.2. The Eligible Agencies will make access available to collection sites. Eligible shall
schedule services as needed.

Solicitation No: BPM007067 Available online at Page 5 of 40
https :/app.azgow

ARIZQNA special Terms and Conditions

— DEPARTMENT OF —
TRANSPORTATION

1. CONTRACT TERM

The term of any resultant contract shall commence on the effective date of award and shall
continue for a period of twelve (12) months thereafter, unless terminated, cancelled or
extended as otherwise provided herein.

2. CONTRACT EXTENSION

By mutual written contract amendment, any resultant contract may be extended for
supplemental periods of up to a maximum of forty-eight (48) months.

3. ELIGIBLE AGENCIES

This contract shall be for the use of all State of Arizona departments, agencies and boards. In
addition, eligible universities, political subdivisions and nonprofit educational or public health
institutions may participate at their discretion. In order to participate in any resultant contract, a
university, political subdivision or nonprofit educational or public health institution must have
entered into a cooperative purchasing agreement with the State Procurement Office as
required by A.R.S. §41-2632. This cooperative purchasing agreement must be in effect at the
time of order. The Contractor shall verify if an ordering entity is an eligible cooperative
purchasing member before selling materials to or providing services for them under the
contract. The current list of cooperative purchasing members is available on the State
Procurement Office website at https://spo.az.gov/suppliers/usage-reporting.

NOTE: Membership in the State Purchasing Cooperative is open to all Arizona political
subdivisions, including cities, counties, school districts, and special districts. Membership is
also available to non-profit organizations, other state governments, the federal government and
tribal nations. For reference, “non-profit organizations” are defined in AR.S. § 41-2631(4) as
any nonprofit corporation as designated by the IRS under Section 501(c)(3) through 501(c)(6)
of the tax code.

4. NON-EXCLUSIVE CONTRACT

This contract shall be for the sole convenience of the Department. The Department reserves
the right to obtain like goods or services from another source when necessary. The Off-
Contract Purchase Authorization and subsequent procurement shall be consistent with the
Arizona Procurement Code.

5. ORDERING PROCESS

Eligible Agencies shall issue a purchase order to the Contractor. Each purchase order must
cite the contract number. This purchase order shall be the only document required for an
Eligible Agency to order and the Contractor to deliver the material and/or service.

Any attempts to represent any material and/or service not specifically awarded as being under
contract is a breach of the contract and a violation of the Arizona Procurement Code. Any such
action is subject to the legal and contractual remedies available to the State inclusive of but not
limited to contract cancellation, suspension and/or debarment of the Contractor.

Solicitation No: BPM007067 Available online at Page 6 of 40
https ://app.azgow

ARIZONA special Terms and Conditions

-—~ DEPARTMENT OF —
TRANSPORTATION

Contractor shall acknowledge each order from Eligible Agencies in conformance with each
agency's instructions given at the time of ordering. Orders from eligible cooperative purchasing
members create no obligation on State’s part. Notwithstanding, the Contractor shall fulfill orders
under the Contract to any Eligible Agency. The Contractor's refusal to do so would be a
material breach of the Contract.

6. INVOICING REQUIREMENTS
Separate invoices are required for each delivery of service and shall include at a minimum:

Department Location’s Name and Address
Vendor Name, Remit to Address and Contact Information
Contract Number

Purchase Order Number

Invoice Number and Date

Date the items were shipped to the Department
Contract Line Item Number

Line Item Description or Item or Service
Quantity Purchased

Line Item Unit of Measure

Price per Unit and Total per Unit

Catalog or Other Discount (if applicable)

Net Unit Price and Total per Unit (if applicable)
Applicable taxes

Applicable Shipping/Freight Charges

Total Invoice Amount Due

Purchasing Card Surcharge

Invoices not sent to the proper address, or not containing the necessary and required information
may delay payment. A Contractor whose payments are delayed due to improper invoicing shall
make no claim against the Department or the State for late or finance charges.

The Department will make every effort to process payment within thirty (30) calendar days after
acceptance of services. Delivery of the service to the Department does not constitute acceptance.

The date the Department accepts delivery of services shall be the valid date for starting the thirty
(30) calendar day payment period.

Payment due dates, including discount periods, will be computed from the date of acceptance or
date of correct invoice (whichever is later) to the date the Department's warrant is mailed.

7. ESTIMATED USAGE

The Department anticipates considerable usage under this contract. The Department reserves
the right to increase or decrease actual quantities ordered as circumstances may require. No
guarantees are made concerning actual purchases under this contract.

Solicitation No: BPM007067 Available online at Page 7 of 40
https ://app.azgow

ARIZONA Special Terms and Conditions

— DEPARTMENT OF —
TRANSPORTATION

8. PRICE REDUCTION

A price reduction adjustment may be offered at any time during the term of the contract and
shall become effective upon notice through a written contract amendment.

9. PRICE INCREASE

The Department will review fully documented requests for price increases for any contract
which will or has been in effect for twelve (12) months. The request shall be submitted no less
than 60 days prior to the contract renewal date. The Contractor shall provide fully documented
information which supports the price increase request. Fully documented means that the
request shall present detailed information and calculations that make it clear how the claimed
increase has an impact on the contract unit prices. All assumptions regarding cost factors that
have an impact on the requested increase shall also be clearly identified and justified. The
requested price increase must be based upon a cost increase that was clearly unpredictable at
the time of the offer and can be shown to directly affect the price of the item concerned. Any
price increase adjustment request prior to the time of contract extension will be a factor in the
extension review process. The Department will determine whether the requested price increase
or an alternate option, is in the best interest of the State.

10. CONTRACT ADMINISTRATION

The contractor shall contact the Procurement Officer for guidance or direction in matters of
contract interpretation or questions regarding the terms, conditions or scope of the contract.

11. NOTICES

All notices, requests, demands, consents, approvals, and other communications which may or
are required to be served or given hereunder (for the purposes of this provisions collectively
called “Notices”), shall be in writing and shall be sent by certified United States mail, return
receipt requested, or by any other method that provides evidence of receipt, addressed to the
party or parties to receive such notice as follows:

a. If intended for the State, to:

Arizona Department of Transportation, Procurement Group
1655 W. Jackson Street, MD 100P
Phoenix, Arizona 85007-3276

b. If intended for the Contractor, to the address as identified in the Contractor's electronic
vendor profile.

Or to such other address as either party may from time to time furnish in writing to the other by
notice hereunder. Any notice so mailed shall be deemed to have been given as of the date
such notice is received as shown on the return receipt. Furthermore, such notice may be given
by delivering personally such notice, if intended for the State, to the Arizona Department of
Transportation, Procurement Officer and, if intended for the Contractor, to the person named
on the Offer & Contract Award of this contract, or to such other person as either party may from

Solicitation No: BPM007067 Available online at Page 8 of 40
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ARIZONA Special Terms and Conditions

~~ DEPARTMENT OF —
TRANSPORTATION

time to time furnish in writing to the other by notice hereunder. Any notice so delivered shall be
deemed to have been given as of the date such notice is personally delivered to the other

party.
12. CANCELLATION FOR POSSESSION OF WEAPONS ON ADOT PROPERTY

The Contractor or any subcontractors are prohibited from having weapons in their possession
or on their person within the building. Weapons shall be stored securely, consistent with AR.S.
§ 13-3118, in the Contractor’s or any subcontractor’s vehicle if there are no storage amenities
available at the ADOT facility. This contract may be cancelled if Contractor or any
subcontractors or others in the employ or under the supervision of the Contractor or
subcontractors is found to be in possession of weapons.

Possession of weapons (firearms, explosive device, knife or blade of more than three inches,
or any other instrument designed for lethal or disabling use) is prohibited on ADOT property
except in the manner stated above.

Further, if the Contractor or any subcontractors or others in the employ or under the
supervision of the Contractors or subcontractors are asked by an ADOT official to leave the
ADOT property, they are advised that failure to comply with such a request shall result in
cancellation of the contract and anyone who refuses, whether armed or not, is subject to
prosecution under A.R.S. § 13-1502, "Criminal trespass in the third degree; classification."

13. REVIEW OF CONTRACTOR’S WORK

Work performed by the Contractor shall be subject to periodic reviews and partial acceptance
at various stages. The Department reserves the right to make such reviews and pass upon the
acceptability of the Contractor's work. Partial acceptance shall not relieve the Contractor’s
obligation to correct, without charge, any errors in the work performed under this contract.

14, ACCURACY OF WORK

The Contractor shall be responsible for the accuracy of the work and shall promptly make all
the necessary revisions or corrections resulting from errors and omissions on the part of the
Contractor without additional compensation. Acceptance of the work by the Department shall
not relieve the Contractor of the responsibility for subsequent correction of any such errors and
Clarification of ambiguities.

15. INDEMNIFICATION

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, and
any jurisdiction or agency issuing permits for any work included in the project, and their
respective directors, officers, officials, agents and employees (hereinafter referred to as
"Indemnitee") from and against any and all claims, actions, liabilities, costs, losses, or
expenses, (including reasonable attorney's fees), (hereinafter collectively referred to as
"Claims") arising out of actual or alleged bodily injury or personal injury of any person (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 Contractor's

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directors, officers, agents, employees, volunteers or subcontractors. This indemnity includes
any claim or amount arising or recovered under the Workers' Compensation Law or arising out
of the failure of 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. tt is agreed
that Contractor will be responsible for primary loss investigation, defense and judgment costs
where this indemnification is applicable. This indemnification will survive the termination of the
above listed contract with the Contractor.

This indemnity shall not apply if the contractor or sub-contractor(s) is/are an agency, board,
commission or university of the State of Arizona.

16. INSURANCE

The Contractor shall furnish Certificate(s) of Insurance inclusive of the following requirements
to the Department. Ceertificate(s) shall be received within (10) calendar days of notification of
contract award by the Procurement Officer.

16.1Insurance Requirements

16.1.1 Contractor and subcontractors shall procure and maintain, until all of their
obligations have been discharged, including any warranty periods under this
Contract, insurance against claims for injury to persons or damage to property
arising from, or in connection with, the performance of the work hereunder by the
Contractor, its agents, representatives, employees or subcontractors.

16.1.2. The Insurance Requirements herein are minimum requirements for this Contract
and in no way limit the indemnity covenants contained in this Contract. The State of
Arizona in no way warrants that the minimum limits contained herein are sufficient
to protect the Contractor from liabilities that arise out of the performance of the
work under this Contract by the Contractor, its agents, representatives, employees
or subcontractors, and the Contractor is free to purchase additional insurance.

16.2Minimum Scope and Limits of Insurance
Contractor shall provide coverage with limits of liability not less than those stated below.
16.2.1. Commercial General Liability (CGL) - Occurrence Form Policy shall include bodily
injury, property damage, and broad form contractual liability coverage.

e General Aggregate $2,000,000

e Products —- Completed Operations Aggregate $1,000,000
e Personal and Advertising Injury $1,000,000

e Damage to Rented Premises $50,000

e 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 Contractor.

b. Policy shall contain a waiver of subrogation endorsement, as required
by this written agreement, in favor of the State of Arizona, and its

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ARIZONA Special Terms and Conditions

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departments, agencies, boards, commissions, universities, officers,
officials, agents, and employees for losses arising from work performed
by or on behalf of the Contractor.
16.2.2. Business Automobile Liability Bodily Injury and Property Damage for any owned,
hired, and/or nonowned automobiles used in the performance of this Contract.
e¢ Combined Single Limit (CSL) $1,000,000

a. Policy shall be endorsed, as required by this written agreement, to
include the State of Arizona, and its departments, agencies, boards as
additional insureds with respect to liability arising out of the activities
performed by, or on behalf of, the Contractor involving automobiles
owned, hired and/or non-owned by the Contractor.

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 Contractor.

16.2.3. Workers’ Compensation and Employers' Liability
e Workers' Compensation Statutory
e Employers' Liability
o Each Accident
$1,000,000
o Disease —- Each Employee $1,000,000
o Disease — Policy Limit
$1,000,000

a. 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 Contractor.

b. This requirement shall not apply to each Contractor or
subcontractor that is exempt under A.R.S. § 23-901, and when
such Contractor or subcontractor executes the appropriate
waiver form (Sole Proprietor or Independent Contractor).

16.2.4. Pollution Legal Liability
® Per Occurrence $1,000,000
e General Aggregate $2,000,000

a. Coverage must be specific to the operations as described in the Scope
of Services in this Contract.

b. Must include coverage for pollution losses arising out of completed
operations.

c. Pollution coverage must apply to all locations utilized for the
acceptance, storage, or disposal of any hazardous materials.

d. The policy is to be written on an “occurrence” basis with no sunset
clause. In the event that the Pollution Liability insurance required by this
Contract is written on a claims-made basis, Contractor warrants that any
retroactive date under the policy shall precede the effective date of this
Contract. That either continuous coverage will be maintained, or an
extended discovery period will be exercised, for a period of ten (10)
years beginning at the time this Contract is terminated.

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e. Pollution coverage must apply to all phases of the work described in the
Scope of Services in this Contract.

f. The policy shall include coverage for bodily injury, sickness, disease,
mental anguish, or shock sustained by any person, including death and
medical monitoring costs.

g. The policy shall include coverage for property damage, and physical
damage to, or destruction of, tangible property including the resulting
loss of use thereof, clean-up costs, and the loss of use of tangible
property that has not been physically damaged or destroyed including
diminution in value.

h. For losses that arise from the facility, coverage shall apply to sudden
and non-sudden pollution conditions including the discharge, dispersal,
release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic
chemicals, liquids or gases, waste materials or other irritants,
contaminants or pollutants, into or upon land, atmosphere, or any
watercourse or body of water which results in cleanup costs, bodily
injury or property damage.

i. The policy shall include coverage for environmental damage including
physical damage to soil, surface water, ground water, plant, or animal
life, caused by pollution conditions and giving rise to cleanup costs.

j. The policy shall include coverage for environmental damage including
physical damage to soil, surface water, ground water, plant, or animal
life, caused by pollution conditions and giving rise to cleanup costs. The
policy shall include defense including costs, charges and expenses
incurred in the investigation, adjustment or defense of claims for such
compensatory damages.

k. The policy shall include coverage for asbestos and lead, mold, with no

exclusions.

The policy shall include Non-Owned Disposal Site coverage.

m. 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 Contractor.

n. The 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 the Contractor.

16.3. Additional Insurance Requirements

The policies shall include, or be endorsed to include, as required by this written
agreement, the following provisions:

16.3.1. The Contractor's policies, as applicable, shall stipulate that the insurance afforded
the Contractor shall be primary and that any insurance carried by the Department,
its agents, officials, employees or the State of Arizona shall be excess and not
contributory insurance, as provided by AR.S. § 41-621 (E).

16.3.2. Insurance provided by the Contractor shall not limit the Contractor's liability
assumed under the indemnification provisions of this Contract.

16.4. Notice of Cancellation

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ARIZONA Special Terms and Conditions

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Applicable to all insurance policies required within the Insurance Requirements of this
Contract, Contractor’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, Contractor 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).

16.5. Acceptability of Insurers
Contractor’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 “AM. Best” rating of not less
than A- Vil. The State of Arizona in no way warrants that the above-required minimum
insurer rating is sufficient to protect the Contractor from potential insurer insolvency.

16.6. Verification of Coverage
Contractor shall furnish the State of Arizona with certificates of insurance (valid ACORD
form or equivalent approved by the State of Arizona) evidencing that Contractor has the
insurance as required by this Contract. An authorized representative of the insurer. shall
sign the certificates.

16.6.1. 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.

16.6.2. Each insurance policy required by this Contract must be in effect at, or prior to,
commencement of work under this Contract. Failure to maintain the insurance
policies as required by this Contract, or to provide evidence of renewal, is a
material breach of contract.

16.6.3. All certificates required by this Contract shall be sent directly to the Department.
The certificate shall state that the insurance applies to any and all work performed
for or on the behalf of the State of Arizona/ADOT 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 Contract at any time.

16.7. Subcontractors
Contractor's certificate(s) shall include all subcontractors as insureds under its policies or
Contractor 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 this contract, proof from the Contractor
that its subcontractors have the required coverage.

16.8. 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 contract, as deemed necessary. Such action will not require a
formal Contract amendment but may be made by administrative action.

16.9. Exceptions
In the event the Contractor or subcontractor(s) is/are a public entity, then the Insurance
Requirements shall not apply. Such public entity shall provide a certificate of self-

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ARIZONA special Terms and Conditions

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insurance. If the Contractor or subcontractor(s) is/are a State of Arizona agency, board,
commission, or university, none of the above shall apply.

17. ADMINISTRATIVE FEE

Contractor shall pay the State an administrative fee against all Contract sales to Co-op Buyers,
as provided for under AR.S. § 41-2633. The fee for goods and services provided under this
contract is 1.5% percent. On January 1, 2025, the administrative fee will increase to
2%. Rates are set in accordance with State Procurement Office (SPO) Technical Bulletin (TB)
007, available on SPO’s website, which may be revised at the State’s sole discretion as part of
Arizona state procurement policy. TB 007 may be found
here: https://spointra.az.gov/resources/procurement-regulations. Failure to remit the
administrative fees is a material breach of contract, and will entitle the State to its remedies
under Uniform Terms and Conditions Section 8, State’s Contractual Remedies, and its right to
terminate for default under Section 9, Contract Termination. Method of fee calculation, payment
procedures, and other details are provided on the State Procurement Office

website: https://spo.az.gov/.
18. USAGE REPORT

18.1 Administrative Fee Reporting
Contractor shall submit to ADOA-SPO a Quarterly Report documenting all Contract sales
to both eligible State agencies and cooperative purchasing members, itemized
separately. A Quarterly Report shall be submitted even if there have been no sales. The
Contractor shall further itemize divisions, groups or areas within a given Eligible Agency if
they place Orders independently of each other.

Quarterly reports on transactions with cooperative purchasing members are required to
be filed with ADOA-SPO. Failure to remit the administrative fees/usage reports is a
material breach of contract, and will entitle State to its remedies under Article 8 and its
right to terminate for default under Article 9. Method of calculation, payment procedures,
and other details are provided on the State Procurement Office website at
https://spo.az.gov/suppliers/usage-reporting.

18.2 ADOT Usage Report Requirements
The Contractor shall furnish ADOT a quarterly report showing all purchasing activity

under this contract. This usage report shall be provided in a form substantially
equivalent to Exhibit 7. Usage reports shall be submitted to the Procurement Officer no
later than 30 days after the end of each quarter.

Usage report quarters shall be defined as follows:

January through March — Report due April 30

April through June — Report due July 30

July through September — Report due October 30
October through December — Report due January 30

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