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City Clerk Document No.
City Council Meeting Date: July 15, 2021
CITY OF CHANDLER SERVICES AGREEMENT
RIGHT OF WAY REPAIRS
CITY OF CHANDLER AGREEMENT NO. PW1-745-4336
THIS AGREEMENT (Agreement) is made and entered into by and between the City of Chandler, an Arizona
municipal corporation (City), and Vincon Engineering Construction, LLC, an Arizona Limited Liability
Corporation (Contractor), (City and Contractor may individually be referred to as Party and collectively
referred to as Parties) and made
, 2021(Effective Date).
RECITALS
A. City proposes to provide right of way repairs as more fully described in Exhibit A, which is attached to
and made a part of this Agreement by this reference.
B. Contractor is ready, willing, and able to provide the services described in Exhibit A for the compensation
and fees set forth and as described in Exhibit B, which is attached to and made a part of this Agreement by
this reference.
C. City desires to contract with the Contractor to provide these services under the terms and conditions set
forth in this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and the mutual promises contained in this
Agreement, City and Contractor agree as follows:
SECTION I: DEFINITIONS
For purposes of this Agreement, the following definitions apply:
Agreement means the legal agreement executed between the City and the Contractor
City means the City of Chandler, Arizona
Contractor means the individual, partnership, or corporation named in the Agreement
Days means calendar days
May, Should means something that is not mandatory but permissible
Shall, Will, Must means a mandatory requirement
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SECTION II: CONTRACTOR’S SERVICES
Contractor must perform the services described in Exhibit A to the City’s satisfaction within the terms and
conditions of this Agreement and within the care and skill that a person who provides similar services in
Chandler, Arizona exercises under similar conditions. All work or services furnished by Contractor under
this Agreement must be performed in a skilled and workmanlike manner. Unless authorized by the City
in writing, all fixtures, furnishings, and equipment furnished by Contractor as part of the work or services
under this Agreement must be new, or the latest model, and of the most suitable grade and quality for the
intended purpose of the work or service.
SECTION III: PERIOD OF SERVICE
Contractor must perform the services described in Exhibit A for the term of this Agreement.
The term of the Agreement is ONE year, and begins on August 1, 2021 and ends on July 31, 2022 unless
sooner terminated in accordance with the provisions of this Agreement. The City and the Contractor may
mutually agree to extend the Agreement for up to FOUR additional terms of ONE year each, or portions
thereof. The City reserves the right, at its sole discretion, to extend the Agreement for up to 60 days beyond
the expiration of any extension term.
SECTION lV: PAYMENT OF COMPENSATION AND FEES
Unless amended in writing by the Parties, Contractor's compensation and fees as more fully described in
Exhibit B for performance of the services approved and accepted by the City under this Agreement must
not exceed $120,000. Contractor must submit requests for payment for services approved and accepted
during the previous billing period and must include, as applicable, detailed invoices and receipts, a
narrative description of the tasks accomplished during the billing period, a list of any deliverables
submitted, and any subcontractor’s or supplier’s actual requests for payment plus similar narrative and
listing of their work. Payment for those services negotiated as a lump sum will be made in accordance with
the percentage of the work completed during the preceding billing period. Services negotiated as a not-to-
exceed fee will be paid in accordance with the work completed on the service during the preceding month.
All requests for payment must be submitted to the City for review and approval. The City will make payment
for approved and accepted services within 30 days of the City’s receipt of the request for payment.
Contractor bears all responsibility and liability for any and all tax obligations that result from Contractor’s
performance under this Agreement.
SECTION V: GENERAL CONDITIONS
5.1 Records/Audit. Records of the Contractor's direct personnel payroll, reimbursable expenses pertaining
to this Agreement and records of accounts between the City and Contractor must be kept on the basis of
generally accepted accounting principles and must be made available to the City and its auditors for up to
three years following the City’s final acceptance of the services under this Agreement. The City, its
authorized representative, or any federal agency, reserves the right to audit Contractor's records to verify
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the accuracy and appropriateness of all cost and pricing data, including data used to negotiate this
Agreement and any amendments. The City reserves the right to decrease the total amount of Agreement
price or payments made under this Agreement or request reimbursement from the Contractor following
final contract payment on this Agreement if, upon audit of the Contractor's records, the audit discloses the
Contractor has provided false, misleading, or inaccurate cost and pricing data. The Contractor will include
a similar provision in all of its contracts with subcontractors providing services under the Agreement
Documents to ensure that the City, its authorized representative, or the appropriate federal agency, has
access to the subcontractors’ records to verify the accuracy of all cost and pricing data. The City reserves
the right to decrease Contract price or payments made on this Agreement or request reimbursement from
the Contractor following final payment on this Agreement if the above provision is not included in
subcontractor agreements, and one or more subcontractors refuse to allow the City to audit their records
to verify the accuracy and appropriateness of all cost and pricing data. If, following an audit of this
Agreement, the audit discloses the Contractor has provided false, misleading, or inaccurate cost and pricing
data, and the cost discrepancies exceed 1% of the total Agreement billings, the Contractor will be liable for
reimbursement of the reasonable, actual cost of the audit.
5.2 Alteration in Character of Work. Whenever an alteration in the character of work results in a substantial
change in this Agreement, thereby materially increasing or decreasing the scope of services, cost of
performance, or Project schedule, the work will be performed as directed by the City. However, before any
modified work is started, a written amendment must be approved and executed by the City and the
Contractor. Such amendment must not be effective until approved by the City. Additions to, modifications,
or deletions from this Agreement as provided herein may be made, and the compensation to be paid to
the Contractor may accordingly be adjusted by mutual agreement of the Parties. It is distinctly understood
and agreed that no claim for extra work done or materials furnished by the Contractor will be allowed by
the City except as provided herein, nor must the Contractor do any work or furnish any materials not
covered by this Agreement unless such work is first authorized in writing. Any such work or materials
furnished by the Contractor without prior written authorization will be at Contractor's own risk, cost, and
expense, and Contractor hereby agrees that without written authorization Contractor will make no claim
for compensation for such work or materials furnished.
5.3 Termination for Convenience. The City and the Contractor hereby agree to the full performance
of the covenants contained herein, except that the City reserves the right, at its discretion and without
cause, to terminate or abandon any service provided for in this Agreement, or abandon any portion
of the Project for which services have been performed by the Contractor. In the event the City
abandons or suspends the services, or any part of the services as provided in this Agreement, the City
will notify the Contractor in writing and immediately after receiving such notice, the Contractor must
discontinue advancing the work specified under this Agreement. Upon such termination,
abandonment, or suspension, the Contractor must deliver to the City all drawings, plans,
specifications, special provisions, estimates and other work entirely or partially completed, together
with all unused materials supplied by the City. The Contractor must appraise the work Contractor has
completed and submit Contractor's appraisal to the City for evaluation. The City may inspect the
Contractor's work to appraise the work completed. The Contractor will receive compensation in full
for services performed to the date of such termination. The fee shall be paid in accordance with
Section IV of this Agreement, and as mutually agreed upon by the Contractor and the City. If there is
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no mutual agreement on payment, the final determination will be made in accordance with the
Disputes provision in this Agreement. However, in no event may the payment exceed the payment
set forth in this Agreement nor as amended in accordance with Alteration in Character of Work. The
City will make the final payment within 60 days after the Contractor has delivered the last of the
partially completed items and the Parties agree on the final payment. If the City is found to have
improperly terminated the Agreement for cause or default, the termination will be converted to a
termination for convenience in accordance with the provisions of this Agreement.
5.4 Termination for Cause. The City may terminate this Agreement for Cause upon the occurrence of any
one or more of the following events: in the event that (a) the Contractor fails to perform pursuant to the
terms of this Agreement, (b) the Contractor is adjudged a bankrupt or insolvent, (c) the Contractor makes
a general assignment for the benefit of creditors, (d) a trustee or receiver is appointed for Contractor or
for any of Contractor’s property (e) the Contractor files a petition to take advantage of any debtor's act, or
to reorganize under the bankruptcy or similar laws, (f) the Contractor disregards laws, ordinances, rules,
regulations or orders of any public body having jurisdiction, or (g) the Contractor fails to cure default within
the time requested. Where Agreement has been so terminated by City, the termination will not affect any
rights of City against Contractor then existing or which may thereafter accrue.
5.5 Indemnification. The Contractor (lndemnitor) must indemnify, defend, save and hold harmless the
City and its officers, officials, agents and employees (lndemnitee) from any and all claims, actions,
liabilities, damages, losses or expenses (including court costs, attorneys' fees and costs of claim
processing, investigation and litigation) (Claims) caused or alleged to be caused, in whole or in part,
by the wrongful, negligent or willful acts, or errors or omissions of the Contractor or any of its owners,
officers, directors, agents, employees, or subcontractors in connection with this Agreement. This
indemnity includes any claim or amount arising out of or recovered under workers' compensation law
or on account of the failure of the Contractor to conform to any federal, state or local law, statute,
ordinance, rule, regulation or court decree. The Contractor must indemnify lndemnitee from and
against any and all Claims, except those arising solely from lndemnitee's own negligent or willful acts
or omissions. The Contractor is responsible for primary loss investigation, defense and judgment
costs where this indemnification applies. In consideration of the award of this Agreement, the
Contractor agrees to waive all rights of subrogation against lndemnitee for losses arising from or
related to this Agreement. The obligations of the Contractor under this provision survive the
termination or expiration of this Agreement.
5.6 Insurance Requirements. Contractor must procure insurance under the terms and conditions and
for the amounts of coverage set forth in Exhibit C against claims that may arise from or relate to
performance of the work under this Agreement by Contractor and its agents, representatives,
employees, and subcontractors. Contractor and any subcontractors must maintain this insurance
until all of their obligations have been discharged, including any warranty periods under this
Agreement. These insurance requirements are minimum requirements for this Agreement and in no
way limit the indemnity covenants contained in this Agreement. The City in no way warrants that the
minimum limits stated in Exhibit C are sufficient to protect the Contractor from liabilities that might
arise out of the performance of the work under this Agreement by the Contractor, the Contractor’s
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agents, representatives, employees, or subcontractors. Contractor is free to purchase such additional
insurance as may be determined necessary.
5.7 Cooperation and Further Documentation. The Contractor agrees to provide the City such other
duly executed documents as may be reasonably requested by the City to implement the intent of this
Agreement.
5.8 Notices. Unless otherwise provided, notice under this Agreement must be in writing and will be
deemed to have been duly given and received either (a) on the date of service if personally served on
the party to whom notice is to be given, or (b) on the date notice is sent if by electronic mail, or (c) on
the third day after the date of the postmark of deposit by first class United States mail, registered or
certified, postage prepaid and properly addressed as follows:
For the City
For the Contractor
Name:_Raquel McMahon______________________
Name:_Troy Colby____________________________
Title:__Procurement Officer____________________
Title:_Managing Member_____________________
Address:_Mail Stop 901, P.O. Box 4008________
Address:_1831 N. Rochester_________________
__Chandler, AZ 85244__________________________
Mesa, AZ 85213______________________________
Phone:__480-782-2407_________________________
Phone:__480-495-3937_______________________
Email:_raquel.mcmahon@chandleraz.gov______
Email:_tcolby@vinconllc.com_________________
5.9 Successors and Assigns. City and Contractor each bind itself, its partners, successors, assigns, and
legal representatives to the other party to this Agreement and to the partners, successors, assigns,
and legal representatives of such other party in respect to all covenants of this Agreement. Neither
the City nor the Contractor may assign, sublet, or transfer its interest in this Agreement without the
written consent of the other party. In no event may any contractual relation be created between any
third party and the City.
5.10 Disputes. In any dispute arising out of an interpretation of this Agreement or the duties required
not disposed of by agreement between the Contractor and the City, the final determination at the
administrative level will be made by the City Purchasing and Materials Manager.
5.11 Completeness and Accuracy of Contractor's Work. The Contractor must be responsible for the
completeness and accuracy of Contractor's services, data, and other work prepared or compiled
under Contractor's obligation under this Agreement and must correct, at Contractor's expense, all
willful or negligent errors, omissions, or acts that may be discovered. The fact that the City has
accepted or approved the Contractor's work will in no way relieve the Contractor of any of Contractor's
responsibilities.
5.12 Withholding Payment. The City reserves the right to withhold funds from the Contractor's
payments up to the amount equal to the claims the City may have against the Contractor until such
time that a settlement on those claims has been reached.
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5.13 City's Right of Cancellation. The Parties acknowledge that this Agreement is subject to
cancellation by the City under the provisions of Section 38-511, Arizona Revised Statutes (A.R.S.).
5.14 Independent Contractor. For this Agreement the Contractor constitutes an independent
contractor. Any provisions in this Agreement that may appear to give the City the right to direct the
Contractor as to the details of accomplishing the work or to exercise a measure of control over the
work means that the Contractor must follow the wishes of the City as to the results of the work only.
These results must comply with all applicable laws and ordinances.
5.15 Project Staffing. Prior to the start of any work under this Agreement, the Contractor must assign
to the City the key personnel that will be involved in performing services prescribed in the Agreement.
The City may acknowledge its acceptance of such personnel to perform services under this
Agreement. At any time hereafter that the Contractor desires to change key personnel while
performing under the Agreement, the Contractor must submit the qualifications of the new personnel
to the City for prior approval. The Contractor will maintain an adequate and competent staff of
qualified persons, as may be determined by the City, throughout the performance of this Agreement
to ensure acceptable and timely completion of the Scope of Services. If the City objects, with
reasonable cause, to any of the Contractor's staff, the Contractor must take prompt corrective action
acceptable to the City and, if required, remove such personnel from the Project and replace with new
personnel agreed to by the City.
5.16 Subcontractors. Prior to beginning the work, the Contractor must furnish the City for approval
the names of subcontractors to be used under this Agreement. Any subsequent changes are subject
to the City’s written prior approval.
5.17 Force Majeure. If either party is delayed or prevented from the performance of any act required
under this Agreement by reason of acts of God or other cause beyond the control and without fault
of the Party (financial inability excepted), performance of that act may be excused, but only for the
period of the delay, if the Party provides written notice to the other Party within ten days of such act.
The time for performance of the act may be extended for a period equivalent to the period of delay
from the date written notice is received by the other Party.
5.18 Compliance with Laws. Contractor understands, acknowledges, and agrees to comply with the
Americans with Disabilities Act, the Immigration Reform and Control Act of 1986 and the Drug Free
Workplace Act of 1989. All services performed by Contractor must also comply with all applicable City
of Chandler codes, ordinances, and requirements. Contractor agrees to permit the City to verify
Contractor’s compliance.
5.19 No Israel Boycott. By entering into this Agreement, Contractor certifies that Contractor is not
currently engaged in, and agrees for the duration of the Agreement, not to engage in a boycott of
Israel as defined by state statute.
5.20 Legal Worker Requirements. A.R.S. § 41-4401 prohibits the City from awarding a contract to any
contractor who fails, or whose subcontractors fail, to comply with A.R.S. § 23-214(A). Therefore,
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Contractor agrees Contractor and each subcontractor it uses warrants their compliance with all
federal immigration laws and regulations that relate to their employees and their compliance with§
23-214, subsection A. A breach of this warranty will be deemed a material breach of the Agreement
and may be subject to penalties up to and including termination of the Agreement. City retains the
legal right to inspect the papers of any Contractor’s or subcontractor’s employee who provides
services under this Agreement to ensure that the Contractor and subcontractors comply with the
warranty under this provision.
5.21 Lawful Presence Requirement. A.RS. §§ 1-501 and 1-502 prohibit the City from awarding a
contract to any natural person who cannot establish that such person is lawfully present in the United
States. To establish lawful presence, a person must produce qualifying identification and sign a City-
provided affidavit affirming that the identification provided is genuine. This requirement will be
imposed at the time of contract award. This requirement does not apply to business organizations
such as corporations, partnerships, or limited liability companies.
5.22 Covenant Against Contingent Fees. Contractor warrants that no person has been employed or
retained to solicit or secure this Agreement upon an agreement or understanding for a commission,
percentage, brokerage, or contingent fee, and that no member of the Chandler City Council, or any
City employee has any interest, financially, or otherwise, in Contractor’s firm. For breach or violation
of this warrant, the City may annul this Agreement without liability or, at its discretion, to deduct from
the Agreement price or consideration, the full amount of such commission, percentage, brokerage,
or contingent fee.
5.23 Non-Waiver Provision. The failure of either Party to enforce any of the provisions of this
Agreement or to require performance of the other Party of any of the provisions hereof must not be
construed to be a waiver of such provisions, nor must it affect the validity of this Agreement or any
part thereof, or the right of either Party to thereafter enforce each and every provision.
5.24 Disclosure of Information Adverse to the City’s Interests. To evaluate and avoid potential conflicts
of interest, the Contractor must provide written notice to the City, as set forth in this Section, of any
work or services performed by the Contractor for third parties that may involve or be associated with
any real property or personal property owned or leased by the City. Such notice must be given seven
business days prior to commencement of the services by the Contractor for a third party, or seven
business days prior to an adverse action as defined below. Written notice and disclosure must be sent
to the City’s Purchasing and Materials Manager. An adverse action under this Agreement includes, but
is not limited to: (a) using data as defined in the Agreement acquired in connection with this
Agreement to assist a third party in pursuing administrative or judicial action against the City; or (b)
testifying or providing evidence on behalf of any person in connection with an administrative or
judicial action against the City; or (c) using data to produce income for the Contractor or its employees
independently of performing the services under this Agreement, without the prior written consent of
the City. Contractor represents that except for those persons, entities, and projects identified to the
City, the services performed by the Contractor under this Agreement are not expected to create an
interest with any person, entity, or third party project that is or may be adverse to the City’s interests.
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Contractor's failure to provide a written notice and disclosure of the information as set forth in this
Section constitute a material breach of this Agreement.
5.25 Data Confidentiality and Data Security. As used in the Agreement, data means all information,
whether written or verbal, including plans, photographs, studies, investigations, audits, analyses, samples,
reports, calculations, internal memos, meeting minutes, data field notes, work product, proposals,
correspondence and any other similar documents or information prepared by, obtained by, or transmitted
to the Contractor or its subcontractors in the performance of this Agreement. The Parties agree that all
data, regardless of form, including originals, images, and reproductions, prepared by, obtained by, or
transmitted to the Contractor or its subcontractors in connection with the Contractor's or its
subcontractor’s performance of this Agreement is confidential and proprietary information belonging to
the City. Except as specifically provided in this Agreement, Contractor or its subcontractors must not
divulge data to any third party without the City’s prior written consent. Contractor or its subcontractors
must not use the data for any purposes except to perform the services required under this Agreement.
These prohibitions do not apply to the following data provided to the Contractor or its subcontractors have
first given the required notice to the City: (a) data which was known to the Contractor or its subcontractors
prior to its performance under this Agreement unless such data was acquired in connection with work
performed for the City; or (b) data which was acquired by the Contractor or its subcontractors in its
performance under this Agreement and which was disclosed to the Contractor or its subcontractors by a
third party, who to the best of the Contractor's or its subcontractors knowledge and belief, had the legal
right to make such disclosure and the Contractor or its subcontractors are not otherwise required to hold
such data in confidence; or (c) data which is required to be disclosed by virtue of law, regulation, or court
order, to which the Contractor or its subcontractors are subject. In the event the Contractor or its
subcontractors are required or requested to disclose data to a third party, or any other information to
which the Contractor or its subcontractors became privy as a result of any other contract with the City, the
Contractor must first notify the City as set forth in this Section of the request or demand for the data. The
Contractor or its subcontractors must give the City sufficient facts so that the City can be given an
opportunity to first give its consent or take such action that the City may deem appropriate to protect such
data or other information from disclosure. Unless prohibited by law, within ten calendar days after
completion or termination of services under this Agreement, the Contractor or its subcontractors must
promptly deliver, as set forth in this Section, a copy of all data to the City. All data must continue to be
subject to the confidentiality agreements of this Agreement. Contractor or its subcontractors assume all
liability to maintain the confidentiality of the data in its possession and agrees to compensate the City if
any of the provisions of this Section are violated by the Contractor, its employees, agents or subcontractors.
Solely for the purposes of seeking injunctive relief, it is agreed that a breach of this Section must be deemed
to cause irreparable harm that justifies injunctive relief in court. Contractor agrees that the requirements
of this Section must be incorporated into all subcontracts entered into by Contractor. A violation of this
Section may result in immediate termination of this Agreement without notice.
5.26 Personal Identifying Information-Data Security. Personal identifying information, financial
account information, or restricted City information, whether electronic format or hard copy, must be
secured and protected at all times by Contractor and any of its subcontractors. At a minimum,
Contractor must encrypt or password-protect electronic files. This includes data saved to laptop
computers, computerized devices, or removable storage devices. When personal identifying
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information, financial account information, or restricted City information, regardless of its format, is
no longer necessary, the information must be redacted or destroyed through appropriate and secure
methods that ensure the information cannot be viewed, accessed, or reconstructed. In the event that
data collected or obtained by Contractor or its subcontractors in connection with this Agreement is
believed to have been compromised, Contractor or its subcontractors must immediately notify the
City contact. Contractor agrees to reimburse the City for any costs incurred by the City to investigate
potential breaches of this data and, where applicable, the cost of notifying individuals who may be
impacted by the breach. Contractor agrees that the requirements of this Section must be incorporated
into all subcontracts entered into by Contractor. It is further agreed that a violation of this Section
must be deemed to cause irreparable harm that justifies injunctive relief in court. A violation of this
Section may result in immediate termination of this Agreement without notice. The obligations of
Contractor or its subcontractors under this Section must survive the termination of this Agreement.
5.27 Jurisdiction and Venue. This Agreement is made under, and must be construed in accordance
with and governed by the laws of the State of Arizona without regard to the conflicts or choice of law
provisions thereof. Any action to enforce any provision of this Agreement or to obtain any remedy
with respect hereto must be brought in the courts located in Maricopa County, Arizona, and for this
purpose, each Party hereby expressly and irrevocably consents to the jurisdiction and venue of such
court.
5.28 Survival. All warranties, representations, and indemnifications by the Contractor must survive
the completion or termination of this Agreement.
5.29 Modification. Except as expressly provided herein to the contrary, no supplement, modification,
or amendment of any term of this Agreement will be deemed binding or effective unless in writing
and signed by the Parties.
5.30 Severability. If any provision of this Agreement or the application to any person or circumstance
may be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and the
application will not be affected and will be enforceable to the fullest extent permitted by law.
5.31 Integration. This Agreement contains the full agreement of the Parties. Any prior or
contemporaneous written or oral agreement between the Parties regarding the subject matter is
merged and superseded.
5.32 Time is of the Essence. Time of each of the terms, covenants, and conditions of this Agreement
is hereby expressly made of the essence.
5.33 Date of Performance. If the date of performance of any obligation or the last day of any time
period provided for should fall on a Saturday, Sunday, or holiday for the City, the obligation will be
due and owing, and the time period will expire, on the first day after which is not a Saturday, Sunday
or legal City holiday. Except as may otherwise be set forth in this Agreement, any performance
provided for herein will be timely made if completed no later than 5:00 p.m. (Chandler time) on the
day of performance.
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5.34 Delivery. All prices are F.O.B. Destination and include all delivery and unloading at the specified
destinations. The Contractor will retain title and control of all goods until they are delivered and accepted
by the City. All risk of transportation and all related charges will be the responsibility of the Contractor. All
claims for visible or concealed damage will be filed by the Contractor. The City will notify the Contractor
promptly of any damaged goods and will assist the Contractor in arranging for inspection.
5.35 Third Party Beneficiary. Nothing under this Agreement will be construed to give any rights or
benefits in the Agreement to anyone other than the City and the Contractor, and all duties and
responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of
City and the Contractor and not for the benefit of any other party.
5.36 Conflict in Language. All work performed must conform to all applicable City of Chandler codes,
ordinances, and requirements as outlined in this Agreement. If there is a conflict in interpretation
between provisions in this Agreement and those in the Exhibits, the provisions in this Agreement
prevail.
5.37 Document/Information Release. Documents and materials released to the Contractor, which are
identified by the City as sensitive and confidential, are the City’s property. The document/material
must be issued by and returned to the City upon completion of the services under this Agreement.
Contractor’s secondary distribution, disclosure, copying, or duplication in any manner is prohibited
without the City’s prior written approval. The document/material must be kept secure at all times. This
directive applies to all City documents, whether in photographic, printed, or electronic data format.
5.38 Exhibits. The following exhibits are made a part of this Agreement and are incorporated by
reference:
Exhibit A - Scope of Services
Exhibit D - Insurance
Exhibit B – Pricing
Exhibit E – Special Conditions
Exhibit C – Sign Detail
5.39 Special Conditions. As part of the services Contractor provides under this Agreement, Contractor
agrees to comply with and fully perform the special terms and conditions set forth in Exhibit D, which
is attached to and made a part of this Agreement.
5.40 Cooperative Use of Agreement. In addition to the City of Chandler and with approval of the
Contractor, this Agreement may be extended for use by other municipalities, school districts and
government agencies of the State. Any such usage by other entities must be in accordance with the
ordinance, charter and/or procurement rules and regulations of the respective political entity.
If required to provide services on a school district property at least five times during a month, the
Contractor will submit a full set of fingerprints to the school of each person or employee who may
provide such service. The District will conduct a fingerprint check in accordance with A.R.S. 41-1750
and Public Law 92-544 of all Contractors, subcontractors or vendors and their employees for which
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fingerprints are submitted to the District. Additionally, the Contractor will comply with the governing
body fingerprinting policies of each individual school district/public entity. The Contractor, sub-
contractors, vendors and their employees will not provide services on school district properties until
authorized by the District.
Orders placed by other agencies and payment thereof will be the sole responsibility of that agency.
The City will not be responsible for any disputes arising out of transactions made by other agencies
who utilize this Agreement.
5.41 Non-Discrimination and Anti-Harassment Laws. Contractor must comply with all applicable City,
state, and federal non-discrimination and anti-harassment laws, rules, and regulations.
5.42 Licenses and Permits. Beginning with the Effective Date and for the full term of this Agreement,
Contractor must maintain all applicable City, state, and federal licenses and permits required to fully
perform Contractor’s services under this Agreement.
5.43 Warranties. Contractor must furnish a one-year warranty on all work and services performed
under this Agreement. Contractor must furnish, or cause to be furnished, a two-year warranty on all
fixtures, furnishings, and equipment furnished by Contractor, subcontractors, or suppliers under this
Agreement. Any defects in design, workmanship, or materials that do not comply with this Agreement
must be corrected by Contractor (including, but not limited to, all parts and labor) at Contractor’s sole
cost and expense. All written warranties and redlines for as-built conditions must be delivered to the
City on or before the City’s final acceptance of Contractor’s services under this Agreement.
5.44 Emergency Purchases. City reserves the rights to purchase from other sources those items,
which are required on an emergency basis and cannot be supplied immediately by the Contractor.
5.45 Non-Exclusive Agreement. This agreement is for the sole convenience of the City of Chandler.
The City reserves the right to obtain like goods or services from another source when necessary.
5.46 Budget Approval Into Next Fiscal Year. This Agreement will commence on the Effective Date and
continue in full force and effect until it is terminated or expires in accordance with the provisions of this
Agreement. The Parties recognize that the continuation of this Agreement after the close of the City's fiscal
year, which ends on June 30 of each year, is subject to the City Council's approval of a budget that includes
an appropriation for this item as expenditure. The City does not represent that this budget item will be
actually adopted. This determination is solely made by the City Council at the time Council adopts the
budget.
5.47 Performance and Payment Bonds. At the time City issues Notice of Contract Award, Contractor must
provide a Performance Bond and a Payment Bond, each in an amount equal to the full amount of the
Contract Price.
Each such bond must be executed by a surety company or companies holding a Certificate of Authority to
transact surety business in the State of Arizona, issued by the Director of the Arizona Department of
DocuSign Envelope ID: 0DA6A08D-F49B-4C58-BD84-53368351B3A5
DocuSign Envelope ID: 0DA6A08D-F49B-4C58-BD84-53368351B3A5
Troy Colby
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Services Agreement Rev. 03_16
EXHIBIT A TO AGREEMENT
SCOPE OF SERVICES
GENERAL INFORMATION
Contractor will provide right of way repairs on an as needed basis. The City estimates that 90% of the
resulting work shall be routine in nature with the remaining 10% emergency repairs. All “repair” type
work is intermittent, rarely scheduled in advance and relatively small. Typically the city requires a 5' X 8'
asphalt patch and concrete collar for valve work, a 2' X 20' asphalt patch for new services, concrete
sidewalk panel replacements and random size asphalt patches for main repairs.
A “minimum charge” is allowed for projects under 5’x8’ in size. For clarification, this charge will not be
added to the rates of the actual work. If the total project cost based on bid pricing for jobs under 5’x8’ is
less than the minimum charge, the cost of the job will be the minimum charge. Trip fee charges are not
allowed.
The City of Chandler reserves the right to allow other City Departments to use this contract, based on the
City’s needs.
CONTRACT ADMINISTRATOR
The Contract Administrator shall audit billings, approve payments, establish schedules, initiate
services/repair requests, approve addenda to the contract, and generally be responsible for overseeing
the execution of the contract.
MINIMUM CONTRACTOR QUALIFICATIONS
The Contractor shall be in compliance with all applicable Federal, State, Local, ANSI and OSHA laws, rules
and regulations and all other applicable regulations for the term of this contract.
The Contractor, without additional expense to the City, shall be responsible for obtaining and maintaining
any necessary licenses and permits required in connection with the completion of the required services
herein.
Contractor must hold a valid license issued by the State of Arizona Registrar of Contractors prior to
submission of a bid and must maintain same throughout the duration of the contract term and any
subsequent contract extensions. Failure to maintain said license may be grounds for default of the contract
and subsequent termination.
The Contractor may not subcontract any segment or services covered herein, without prior approval of the
Contract Administrator. All subcontractors used under the scope of this contract shall meet all
requirements, terms and conditions set forth herein. All subcontracted services shall be warranted by and
be the responsibility of the Contractor.
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Services Agreement Rev. 03_16
The Contractor MUST have and maintain full time Company representation located in the Phoenix, Arizona
metropolitan area, with the ability and authority to address all Contract issues that may develop. The
Contractor shall provide to the Contract Administrator, the individual’s name and contact information,
including cellular phone, pager, and off-hours phone numbers.
CONTRACTOR’S RESPONSIBILITIES
Under the scope of this contract the Contractor’s requirements shall include, but are not limited to:
•
Contractor shall furnish all labor, materials and equipment necessary for the completion of the
scope of work described herein. Pricing shall include all costs to complete the work including
mobilization and travel charges if applicable. The Contractor shall have sufficient personnel and
equipment to complete all work requests, as defined in this Solicitation, in the time frame required
by the Contract Administrator.
•
Contractor shall meet or exceed time frames required.
•
Perform all repairs under the scope of this contract in the manner provided.
GENERAL REQUIREMENTS:
1.1
Concrete: CONTRACTOR shall be required to provide concrete repair & maintenance services on an “as
needed” basis, including the furnishing all labor, equipment, traffic control (per City of Chandler specifications)
and materials required for the completion of a repair project. Work shall consist of concrete repair and
replacement/ installation to include, but not be limited to, valve collars, handicap ramps, driveway entrances,
alleyway entrances, curb & gutter, sidewalks, valley gutters & pans, and asphalt and base repair. Work may
also consist of upgrading handicap ramps, driveway entrances, alley way entrances and sidewalks to meet
current Americans with Disabilities Act (ADA) standards in compliance with 28 CFR, Part 35.150, and existing
facilities. All work shall be performed in accordance with Arizona Revised Statute 34-201.C.D.
1.2
The CITY is mandated to provide accessibility improvements to curb ramps and driveways whenever a
pavement resurfacing is done. To accomplish this requirement, CONTRACTOR shall repair and/or retrofit
existing curb ramps and driveways to the best extent possible to meet current Americans with Disabilities Act
(ADA) standards contained in 28 Code of Federal Regulations (CFR) Part 35.151 and “Designing Sidewalks and
Trails for Access, Part 2” (Chapters 5 and 7) or as directed by Contract Administrator/designee.
1.3
Asphalt: CONTRACTOR shall be required to make asphalt repairs and maintenance work in
accordance with Maricopa Association of Governments (MAG) Standard Details 200 and City of
Chandler specifications Detail C-110. The work may include the application of other M.A.G. and City
of Chandler standard details and specifications per the most current City of Chandler and/or M.A.G.
standard details and specification. CONTRACTOR shall be required to saw cut or mill all areas
marked for removal prior to patching. All saw cut edges within the patch area shall receive a tack
coat prior to placement of new material. Tack material for edge tacking and ABC for fill-in will be
incidental to work, and cost will be included in removal/replacement if it is deemed a necessity.
2.
MATERIALS. CONTRACTOR shall ensure that concrete conforms to the applicable requirements of
MAG specification section 725 and applicable MAG or City of Chandler standard detail. Concrete
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Services Agreement Rev. 03_16
repair and maintenance shall comply with MAG specification section 340 as applicable. Asphalt cut-
and-patch for concrete forms shall be replaced flushed with existing pavement edges. Asphalt
patching shall comply with City of Chandler Standard Specification No. 3. Asphalt concrete shall be
placed in accordance with the requirements in MAG standard specifications section 321 and 336.
2.1
No work shall be completed under this Agreement without prior written approval from Contract
Administrator/designee. A Notice to Proceed (NTP) via CITY e-mail will be used as approval for all
work to be completed by CONTRACTOR. The NTP shall include emergency and/or routine priority.
E-mail notification shall be sent to the Contract Administrator/designee by the Contractor with the
estimated date of completion for all repairs no later than three (3) days after NTP was received.
2.2
Maricopa County related projects require ½ sack slurry and T-Top per MAG specs. In addition,
Maricopa County related projects are to be identified in the Notification and will require an
approved Maricopa County Traffic Control Plan. Maricopa County related projects will also require
a County permit and projects shall be completed within 14-days after the traffic control plan and
permit are issued.
1.
ESTIMATED QUANTITIES. The quantities shown on Exhibit C (attached) are estimates only, based
upon available information. Payment shall be based on actual quantities. There is no guarantee as
to minimum quantity required by CITY. The CITY reserves the right to increase or decrease the
actual quantities listed.
2.
NOTIFICATION OF PUBLIC. CITY and CONTRACTOR shall notify all affected citizens and businesses
by door flyer 48 hours prior to start of work. Note: Contract Administrator/designee shall provide
a list of email addresses to CONTRACTOR for prior notification to public. Door flyer shall include, as
a minimum, all pertinent information such as description of work, date, time, schedules and
CONTRACTOR name, and a 24-hour contact phone number(s). The flyer information shall be
submitted to the Contract Administrator/designee for approval prior to distribution. This
information shall also be emailed to Contract Administrator/designee(s) as well as the City Inspector
no later than 48-hours prior to commencing work.
3.
EXISTING UTILITIES. CONTRACTOR shall be responsible for identifying and locating (blue stake) all
existing utilities within and around the work area and will take all necessary steps to protect such
utilities from damage. CONTRACTOR shall be responsible for the repair of all damaged utilities
resulting from this work and will coordinate with utility companies and affected residents and
businesses for require outages. CONTRACTOR shall adjust to finished grade all affected utility
junction boxes and utility concrete collars as required.
4.
PROTECTION OF ADJACENT PROPERTY. CONTRACTOR shall take all necessary steps to protect
adjacent public or private properties during work. CONTRACTOR shall restore any damage to
adjacent property at CONTRACTOR expense and to the satisfaction of the Contract
Administrator/designee.
5.
DEMO AND REMOVAL. CONTRACTOR shall remove excavated and demolished materials
immediately from work site at their cost. Steel plates shall be used where excavated area cannot
be backfilled or where concrete placement for valley gutters across roadway surface or drive
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Services Agreement Rev. 03_16
entrances are done in phases. Steel plates shall be gradually ramped from plate edges with EPA
approved material and the street or drive entrance opened immediately to traffic. CONTRACTOR
shall use barricades and “sidewalk closed” signs as required.
6.
WATER FOR REPAIR AND MAINTENANCE PURPOSE. Should CONTRACTOR desire to use water from
CITY mains, CONTRACTOR shall make application to Utility Billing for a fire hydrant meter and pay all the
required deposits and costs. CONTRACTOR shall not take water from CITY mains until a meter is installed.
7.
DETECTABLE WARNING. Detectable warning shall consist of truncated domes as determined in
MAG specification section 340. All truncated dome tiles shall be approved by the contract
administrator or designee prior to installation. .
8.
TRAFFIC CONTROL & CONSTRUCTION SIGNS. CONTRACTOR shall adhere to all CITY, State and
Federal Traffic and Safety guidance, City of Chandler Traffic Barricades Design Manual #7 and City
of Chandler Municipal code 46-2.7.E construction sign requirements. CONTRACTOR shall submit all
traffic control plans for approval by the City of Chandler Traffic Division before any work may
progress. It shall be CONTRACTOR’s responsibility to get an approved Traffic Control Plan in
advance for every project requested under this Agreement.
9.
CLEAN UP. All public and private property and grounds occupied by CONTRACTOR in connection
with the work shall be cleaned of all rubbish and excess materials after each workday; additionally,
temporary structures and equipment shall be removed at the end of the project. All parts of the
work shall be left in an acceptable condition before final acceptance.
10.
NOTIFICATION OF COMPLETION/INVOICES. CONTRACTOR shall send email notification to
Contract Administrator/designee with the address / location and CITY tracking number when work
is completed. Invoices must be emailed to Contract Administrator/Designee no later than 30 days
after the work is completed.
11.
DUST CONTROL. CONTRACTOR shall keep suitable equipment on hand at the job site for
maintaining dust control and shall employ appropriate equipment for that purpose in accordance
with the requirements of the "Maricopa County Health Department Air Pollution Control
Regulations". CONTRACTOR shall be responsible for obtaining an Air Quality Permit from Maricopa
County prior to starting the required work, especially if earth-moving operations are involved.
CONTRACTOR shall pay all permit fees.
12.
TIME REQUIRED FOR COMPLETION. CONTRACTOR shall complete all assigned routine repairs
within 14 days (or fewer) of Notice to Proceed. Emergency repairs shall be completed within 7
days (or fewer) of Notice to Proceed. No work shall be completed under this Agreement
without prior written approval from Contract Administrator/designee. A Notice to Proceed (NTP)
via CITY e-mail will be used as approval for all work to be completed by CONTRACTOR. The NTP
shall include emergency and/or routine priority. Failure to meet the completion time frames may
result in contract termination.
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Services Agreement Rev. 03_16
EXHIBIT B-PRICING
Section 1 – Routine Repairs / Service (requires a 14-day repair time). Prices are tax inclusive.
Line
#
Description
U.O.M.*
Qty
Unit Price
1.
Saw cut: per linear foot / per inch
0-2.0” deep
LF
400
$0.50
2.1” – 3.0” deep
LF
400
$1.00
3.1” – 4.0” deep
LF
400
$1.50
Greater than 4.0” deep
LF
400
$5.00
2.a.
EVAC Asphalt Removal & Replacement
0” to 4.0” deep, 1 – 10 sq. yd.
SY
400
$90.00
0” to 4.0” deep, 11 – 100 sq. yd.
SY
400
$85.00
4” to 8” deep, 1 – 10 sq. yd.
SY
400
$115.00
4” to 8” deep, 11 – 100 sq. yd.
SY
400
$110.00
2.b.
Rubberized Asphalt Removal & Replacement
0” to 4.0” deep, 1 – 10 sq. yd.
SY
80
$100.00
3.
2” Asphalt Cap
SY
800
$35.00
4.
Asphalt milling up to 2” deep per sq. yd.
SY
80
$9.00
5.
Asphalt milling between 2.1”-4.0” deep per sq. yd.
SY
80
$10.00
6.
Sub-base and sub-base grade removal and
replacement, per cu yd.
CY
80
$185.00
7.
City of Chandler Uniformed Police Officer (if required).
Contractor to be paid the cost of hiring police officer.
N/A
N/A
$3500
8.
Traffic control for arterial and collector
(per 24-hour day)
DAY
60
$850.00
9.
Traffic control for local streets
(per 24-hour day)
DAY
15
$200.00
10.
New A/C only, 1” deep per sq. yd.
SY
75
$15.00
11.
Remove concrete curb & gutter
(per lineal foot)
LF
175
$14.00
12.
Place concrete curb & gutter
(per lineal foot)
LF
175
$30.00
13.
Removal of concrete flatwork, 0-4”
(per sq. ft.)
SF
120
$3.50
14.
Removal of concrete flatwork, 4.1” – 8.0”
(per sq. ft.)
SF
120
$4.75
15.
Place finished concrete flatwork, 0-4”
(per sq. ft.)
SF
400
$9.50
16.
Place finished concrete flatwork, 4.1” – 8.0” (per sq.
ft.)
SF
120
$12.00
17. Sidewalk, Per MAG Detail #230
SF
800
$9.50
18. Ramp, Per MAG Detail #235-1 (2017)
EA
1
$1,000.00
19. Valve Box/Collars Per COC Standard C307 & C317
EA
15
$600.00
20. Ramp, Per MAG Detail #235-5 (2017)
EA
1
$1,000.00
21.
General survey
EA
20
$100.00
22.
Crack seal (per lineal foot)
LF
400
$1.50
23.
Minimum Charge for Projects under 5’ x 8’ in size
EA
20
$2,500.00
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Services Agreement Rev. 03_16
Section 2 – Emergency Repairs / Service (requires a 7 day repair time). Prices are tax inclusive.
Line
#
Description
U.O.M.*
Qty
Unit Price
1.
0-2.0” deep
LF
250
$0.50
2.1” – 3.0” deep
LF
250
$1.00
3.1” – 4.0” deep
LF
250
$1.50
Greater than 4.0” deep
LF
250
$5.00
2.a.
0” to 4.0” deep, 1 – 10 sq. yd.
SY
250
$90.00
0” to 4.0” deep, 11 – 100 sq. yd.
SY
250
$85.00
4” to 8” deep, 1 – 10 sq. yd.
SY
250
$115.00
4” to 8” deep, 11 – 100 sq. yd.
SY
250
$110.00
2.b.
0” to 4.0” deep, 1 – 10 sq. yd.
SY
50
$100.00
3.
2” Asphalt Cap
SY
500
$35.00
4.
Asphalt milling up to 2” deep per sq. yd.
SY
50
$9.00
5.
Asphalt milling between 2.1”-4.0” deep per sq. yd.
SY
50
$10.00
6.
Sub-base and sub-base grade removal and replacement,
per cu yd.
CY
50
$185.00
7.
City of Chandler Uniformed Police Officer (if required).
Contractor to be paid the cost of hiring police officer.
N/A
N/A
N/A
8.
Traffic control for arterial and collector
(per 24-hour day)
DAY
40
$850.00
9.
Traffic control for local streets
(per 24-hour day)
DAY
10
$200.00
10.
New A/C only, 1” deep per sq. yd.
SY
50
$15.00
11.
Remove concrete curb & gutter
(per lineal foot)
LF
100
$14.00
12.
Place concrete curb & gutter
(per lineal foot)
LF
100
$30.00
13.
Removal of concrete flatwork, 0-4”
(per sq. ft.)
SF
75
$3.50
14.
Removal of concrete flatwork, 4.1” – 8.0”
(per sq. ft.)
SF
75
$4.75
15.
Place finished concrete flatwork, 0-4”
(per sq. ft.)
SF
250
$9.50
16.
Place finished concrete flatwork, 4.1” – 8.0” (per sq. ft.)
SF
75
$12.00
17. Sidewalk, Per MAG Detail #230
SF
500
$9.50
18. Ramp, Per MAG Detail #235-1 (2017)
EA
1
$1,000.00
19. Valve Box/Collars Per COC Standard C307 & C317
EA
5
$600.00
20. Ramp, Per MAG Detail #235-5 (2017)
EA
1
$1,000.00
21.
General survey
$
10
$100.00
22.
Crack seal (per lineal foot)
$
250
$1.50
23.
Minimum Charge for Projects under 5’ x 8’
EA
10
$2,500.00
*U.O.M. are listed as estimates ONLY and are not guaranteed.
**CONTRACTOR shall use the most current City of Chandler and/or M.A.G. standard details and
specifications.
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Services Agreement Rev. 03_16
EXHIBIT C
CONSTRUCTION SIGN DETAIL
8'
3"
CITY OF CHANDLER
5"
3"
PUTTING YOUR FUNDS TO WORK
5"
3"
PROJECT TITLE:
5"
4'
3"
PROJECT NUMBER:
3"
2"
PROJECT COST:
3"
2"
CONTRACTOR:
3"
2"
ENGINEER:
3"
3"
<--- 4" X 4" POSTS --->
NOTES:
SIGN(S) SHALL BE FURNISHED AND ERECTED PRIOR TO COMMENCEMENT OF CONSTRUCTION. POSTS
SHALL BE ANCHORED A MINIMUM OF TWO FEET INTO THE GROUND. BOTTOM OF SIGN SHALL BE A
MINIMUM OF FOUR FEET ABOVE THE GROUND.
TYPICAL PROJECT IDENTIFICATION SIGN FOR GENERAL PROJECTS SHALL BE NON-REFLECTORIZED ORANGE
BACKGROUND, AND NON-REFLECTORIZED BLACK LETTERS AND NUMERALS.
ONE SIGN SHALL BE ERECTED FOR BUILDINGS AND OTHER LIMITED AREA SINGLE SITES. FOR MULTIPLE
SITES, ONE SIGN SHALL BE ERECTED AT EACH SITE.
FOR LINEAR PROJECTS ONE HALF MILE OR LONGER, PLACE ONE SIGN AT EACH END OF THE PROJECT.
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Services Agreement Rev. 03_16
Construction signs required for work:
Whenever any work is being done in CITY streets, easements or right of way for which approval by CITY of
a traffic control plan is required, the person or persons performing such work shall maintain at the site of
such work at all times during which any such work is being done, signage meeting the requirements set
forth below and providing information to the public as follows:
1.
If the work will take one (1) week or longer to perform, such signage shall:
1. Be installed so that the bottom of the sign is at least seven (7) feet above grade, or as otherwise
approved by CITY Transportation Engineer;
2. Be at least 3’x5’ in size or large enough to contain all the information required below, whichever is
larger.
3. Be placed in such positions that they can be read by traffic from each direction.
4. Be colored “construction orange” with black letters.
5. Have block letters at least 6” in height.
6. Contain the following information: the name of the CONTRACTOR for whom the work is being
performed; the name of the CONTRACTOR actually performing the work; a general description of
the work to be done; the time frame within which the work will be performed, i.e. the date work will
commence and the date all work will be completed; a 24-hour contact phone number where persons
may speak with a representative of the CONTRACTOR for whom the work is being performed or may
leave a request to speak with such a representative and for which all calls will be turned by such a
representative of the CONTRACTOR within 24-hours.
2.
If the work will take less than one (1) week to perform, such signage shall:
i.
Be installed on temporary supports at an approved location;
ii.
Be placed in such positions that they can be read by traffic from each direction;
iii.
Be colored “construction orange” with black letters;
iv.
Have block letters at least 6” in height;
v.
Contain the following information: the name of CONTRACTOR for whom the work is being
performed;
vi.
a 24-hour contact phone number where persons may speak with a representative of the
CONTRACTOR for whom the work is being performed or may leave a request to speak with such a
representative and for which all calls will be returned by such a representative of the CONTRACTOR
within 24-hours.
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Services Agreement Rev. 03_16
(CONTRACTOR)
RIGHT OF WAY
REPAIRS
3-1-21 TO 11-30-21
(480) 782-XXXX
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EXHIBIT D TO AGREEMENT
INSURANCE
INSURANCE
General.
A.
At the same time as execution of this Agreement, the Contractor shall furnish the City a
certificate of insurance on a standard insurance industry ACORD form. The ACORD form
must be issued by an insurance company authorized to transact business in the State of
Arizona possessing a current A.M. Best, Inc. rating of A-7, or better and legally authorized to
do business in the State of Arizona with policies and forms satisfactory to City. Provided,
however, the A.M. Best rating requirement shall not be deemed to apply to required Workers’
Compensation coverage.
B.
The Contractor and any of its subcontractors shall procure and maintain, until all of their
obligations have been discharged, including any warranty periods under this Agreement are
satisfied, the insurances set forth below.
C.
The insurance requirements set forth below are minimum requirements for this Agreement
and in no way limit the indemnity covenants contained in this Agreement.
D.
The City in no way warrants that the minimum insurance limits contained in this Agreement
are sufficient to protect Contractor from liabilities that might arise out of the performance
of the Agreement services under this Agreement by Contractor, its agents, representatives,
employees, subcontractors, and the Contractor is free to purchase any additional insurance
as may be determined necessary.
E.
Failure to demand evidence of full compliance with the insurance requirements in this
Agreement or failure to identify any insurance deficiency will not relieve the Contractor from,
nor will it be considered a waiver of its obligation to maintain the required insurance at all
times during the performance of this Agreement.
F.
Use of Subcontractors: If any work is subcontracted in any way, the Contractor shall execute
a written contract with Subcontractor containing the same Indemnification Clause and
Insurance Requirements as the City requires of the Contractor in this Agreement. The
Contractor is responsible for executing the Agreement with the Subcontractor and obtaining
Certificates of Insurance and verifying the insurance requirements.
Minimum Scope and Limits of Insurance. The Contractor shall provide coverage with limits of liability not
less than those stated below.
A.
Commercial General Liability-Occurrence Form. Contractor must maintain “occurrence” form
Commercial General Liability insurance with a limit of not less than $2,000,000 for each
occurrence, $4,000,000 aggregate. Said insurance must also include coverage for products
and completed operations, independent contractors, personal injury and advertising injury.
If any Excess insurance is utilized to fulfill the requirements of this paragraph, the Excess
insurance must be “follow form” equal or broader in coverage scope than underlying
insurance.
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Services Agreement Rev. 03_16
B.
Automobile Liability-Any Auto or Owned, Hired and Non-Owned Vehicles
Vehicle Liability: Contractor must maintain Business/Automobile Liability insurance with a
limit of $1,000,000 each accident on Contractor owned, hired, and non-owned vehicles
assigned to or used in the performance of the Contractor’s work or services under this
Agreement. If any Excess or Umbrella insurance is utilized to fulfill the requirements of this
paragraph, the Excess or Umbrella insurance must be “follow form” equal or broader in
coverage scope than underlying insurance.
C.
Workers Compensation and Employers Liability Insurance: Contractor must maintain Workers
Compensation insurance to cover obligations imposed by federal and state statutes having
jurisdiction of Contractor employees engaged in the performance of work or services under
this Agreement and must also maintain Employers’ Liability insurance of not less than
$1,000,000 for each accident and $1,000,000 disease for each employee.
D.
Builders’ Risk/Installation Floater Insurance. The Contractor bears all responsibility for loss to
all equipment or Work under construction. Unless waived in writing by the City the
Contractor will purchase and maintain in force Builders’ Risk/Installation Floater insurance
on the entire Work until completed and accepted by the City. This insurance will be Special
Causes of Loss policy form, (minimally including perils of fire, flood, lightning, explosion,
windstorm and hail, smoke, aircraft and vehicles, riot and civil commotion, theft, vandalism,
malicious mischief, and collapse), completed value, replacement cost policy form equal to
the contract price and all subsequent modifications. The Contractor’s Builders’
Risk/Installation Floater insurance must be primary and not contributory.
1. Builders’ Risk/Installation Floater insurance must cover the entire Work including
reasonable compensation for architects and Contractors’ services and expenses and
other “soft costs” made necessary by an insured loss. Builders’ Risk/Installation Floater
insurance must provide coverage from the time any covered property comes under the
Contractor’s control and or responsibility, and continue without interruption during
course of construction, renovation and or installation, including any time during which
any project property or equipment is in transit, off site, or while on site for future use or
installation. Insured property must include, but not be limited to, scaffolding, false work,
and temporary buildings at the site. This insurance must also cover the cost of removing
debris, including demolition as may be legally required by operation of any law,
ordinance, regulation or code.
2. The Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders’ Risk/Installation Floater insurance cited above if the
Work to be performed involves any exposures or insurable property normally covered
under a Boiler and Machinery insurance policy or made necessary as required by law or
testing requirements in the performance of this Contract/Agreement. The Contractor will
be responsible for any and all deductibles under these policies and the Contractor waives
all rights of recovery and subrogation against the City under the Contractor’s Builders’
Risk/Installation Floater insurance described herein.
3. Builders’ Risk/Installation Floater Insurance must be maintained until whichever of the
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Services Agreement Rev. 03_16
following first occurs: (i) final payment has been made; or, (ii) until no person or entity,
other than the City, has an insurable interest in the property required to be covered.
a. The Builders’ Risk/Installation Floater insurance must be endorsed so that the
insurance will not be canceled or lapse because of any partial use or occupancy by
the City.
b. The Builders Risk/Installation Floater insurance must include as named insureds, the
City, the Contractor, and all tiers of subcontractors and others with an insurable
interest in the Work who will be named as additional insureds unless they are able to
provide the same level of coverage with the City and Contractor named as additional
insureds. Certificates must contain a provision that the insurance will not be canceled
or materially altered without at least 30 days advance notice to the City. The City must
also be named as a Loss Payee under the Builders’ Risk/Installation Floater coverage.
c. The Builders Risk/Installation Floater insurance must be written using the Special
Causes of Loss policy form, replacement cost basis.
d. All rights of subrogation under the Builders Risk/Installation Floater insurance are, by
this Contract/Agreement, waived against the City, its officers, officials, agents and
employees.
e. The Contractor is responsible for payment of all deductibles under the Builders’
Risk/Installation Floater insurance policy.
Additional Policy Provisions Required.
A.
Self-Insured Retentions or Deductibles. Any self-insured retentions and deductibles must be
declared and approved by the City. If not approved, the City may require that the insurer
reduce or eliminate any deductible or self-insured retentions with respect to the City, its
officers, officials, agents, employees, and volunteers.
1. The Contractor’s insurance must contain broad form contractual liability coverage.
2. The Contractor's insurance coverage must be primary insurance with respect to the City,
its officers, officials, agents, and employees. Any insurance or self-insurance maintained
by the City, its officers, officials, agents, and employees shall be in excess of the coverage
provided by the Contractor and must not contribute to it.
3. The Contractor's insurance must apply separately to each insured against whom claim is
made or suit is brought, except with respect to the limits of the insurer's liability.
4. Coverage provided by the Contractor must not be limited to the liability assumed under
the indemnification provisions of this Agreement.
5. The policies must contain a severability of interest clause and waiver of subrogation
against the City, its officers, officials, agents, and employees, for losses arising from Work
performed by the Contractor for the City.
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Services Agreement Rev. 03_16
6. The Contractor, its successors and or assigns, are required to maintain Commercial
General Liability insurance as specified in this Agreement for a minimum period of three
years following completion and acceptance of the Work. The Contractor must submit a
Certificate of Insurance evidencing Commercial General Liability insurance during this
three year period containing all the Agreement insurance requirements, including
naming the City of Chandler, its agents, representatives, officers, directors, officials and
employees as Additional Insured as required.
7. If a Certificate of Insurance is submitted as verification of coverage, the City will
reasonably rely upon the Certificate of Insurance as evidence of coverage but this
acceptance and reliance will not waive or alter in any way the insurance requirements or
obligations of this Agreement.
B.
Insurance Cancellation During Term of Contract/Agreement.
1. If any of the required policies expire during the life of this Contract/Agreement, the
Contractor must forward renewal or replacement Certificates to the City within ten days
after the renewal date containing all the required insurance provisions.
2. Each insurance policy required by the insurance provisions of this Contract/Agreement
shall provide the required coverage and shall not be suspended, voided or canceled
except after 30 days prior written notice has been given to the City, except when
cancellation is for non-payment of premium, then ten days prior notice may be given.
Such notice shall be sent directly to Chandler Law-Risk Management Department, Post
Office Box 4008, Mailstop 628, Chandler, Arizona 85225. If any insurance company
refuses to provide the required notice, the Contractor or its insurance broker shall notify
the City of any cancellation, suspension, non-renewal of any insurance within seven days
of receipt of insurers’ notification to that effect.
C.
City as Additional Insured. The policies are to contain, or be endorsed to contain, the following
provisions:
1. The Commercial General Liability and Automobile Liability policies are to contain, or be
endorsed to contain, the following provisions: The City, its officers, officials, agents, and
employees are additional insureds with respect to liability arising out of activities
performed by, or on behalf of, the Contractor including the City's general supervision of
the Contractor; Products and Completed operations of the Contractor; and automobiles
owned, leased, hired, or borrowed by the Contractor.
2. The City, its officers, officials, agents, and employees must be additional insureds to the
full limits of liability purchased by the Contractor even if those limits of liability are in
excess of those required by this Agreement.
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EXHIBIT E TO AGREEMENT
SPECIAL CONDITIONS
WORK IN CITY RIGHT-OF-WAY
Work within the City's Right-of-Way. All work performed within the City's Right-of-Way by the Contractor
and his/her subcontractors must comply with the City of Chandler requirements.
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