Agreement - Ancon

City of Chandler — Regular Meeting (2021-08-26)

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City Clerk Document No. _____ _ 
City Council Meeting Date: 8/26/21 
CITY OF CHANDLER PURCHASE AGREEMENT 
SEWER LINE CLEANING AND DEBRIS REMOVAL 
CITY OF CHANDLER AGREEMENT NO. PW2-962-4328 
THIS AGREEMENT (Agreement) is made and entered into by and between the City of Chandler, an Arizona 
municipal corporation (City), and Ancon Services, Inc., a California S Corporation, (Contractor), ·(City and 
Contractor may individually be referred to as Party and collectively referred to as Parties), made 
_______ , 2021 (Effective Date). 
RECITALS 
A. On or about May 20, 2021, the City issued a solicitation for sewer line cleaning and debris removal. 
Under the solicitation, the City proposes to enter into two related agreements for sewer line cleaning and 
debris removal in various amounts for the prices set forth in each sewer line cleaning and debris removal 
agreement. Although the amount and type of sewer line cleaning and debris removal purchased for by 
the City may vary, the total sum for both sewer line cleaning and debris removal agreements must not 
exceed $998,000.
B. City proposes to purchase sewer line cleaning and debris removal services from Contractor as more 
fully described in Exhibit A, which is attached to and made a part of this Agreement by this reference.
C. Contractor is ready, willing, and able to provide the goods or 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.
D. City desires to contract with the Contractor to provide these goods or 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 
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Days means calendar days 
May, Should means something that is not mandatory but permissible 
Shall, Will, Must means a mandatory requirement 
SECTION II: CONTRACTOR'S SERVICES 
Contractor must perform in accordance with 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 goods 
services in Chandler, Arizona exercises under similar conditions. All goods 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 goods 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 goods or services. 
SECTION Ill: PERIOD OF SERVICE 
Contractor must perform in accordance with Exhibit A for the term of this Agreement. The term of the 
Agreement is two years, and begins on September 1, 2021 and ends on August 31, 2023 unless sooner 
terminated in accordance with this Agreement. The City and the Contractor may mutually agree to 
extend the Agreement for up to two additional terms of two years 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 IV: PAYMENT OF COMPENSATION AND FEES 
Unless amended in writing by the Parties, Contractor's compensation and fees must not exceed the unit 
prices and amounts as more fully described in Exhibit B for performance approved and accepted by the 
City under this Agreement. Contractor must submit requests for payment for goods or 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 goods or services negotiated as a lump sum will be 
made in accordance with the percentage of the goods furnished or services completed during the 
preceding billing period. Goods or services negotiated as a not-to-exceed fee will be paid in accordance 
with the goods furnished or services completed 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 goods or 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 
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General Manager

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2.1.2. Sewer lines (bucket and Hydro vac note: City may have separate contractors for 
each) 
The requesting department will determine if Hydro vac or Bucket Method will be used.  The 
intent of sewer line cleaning is to remove foreign materials from the lines and restore the 
sewer to a minimum of 95% of the original carrying capacity.  Since the success of other 
phases of work depends a great deal on the cleanliness of the lines the importance of this 
phase of the operation is emphasized.  It is recognized that there are some conditions, such 
as broken pipe and major blockages that prevent cleaning from being accomplished or where 
additional damage would result if cleaning were attempted or continued.  Should such 
conditions be encountered the contractor will not be required to clean those specific 
manhole sections.  If in the course of normal cleaning operations damage does result from 
pre-existing and unforeseen conditions such as broken pipe, the contractor will not be held 
responsible.  However, the contractor will remain on site and assist in repairs if requested.  If 
the contractor is unable to clean any section of pipe for any reason, he must notify the 
requesting Department immediately. 
 
During all sewer cleaning operations, satisfactory precautions shall be taken to protect the 
sewer lines and manholes from damage that might be inflicted by the improper use of 
cleaning equipment.  Equipment recommended by the manufacturer to protect the manhole 
and pipe shall be used.  
 
Whenever any tools which restrict the flow of water in the sewer lines are used precautions 
shall be taken to ensure that the water pressure created does not cause any damage or 
flooding to public or private property being served by the manhole section involved. 
 
Every attempt must be made by the contractor to replace all manhole lids securely after 
performing maintenance to ensure pedestrian and traffic safety including the removal of all 
debris prior to re-setting the manhole cover.  Any manhole lids with traffic striping should be 
re-aligned to the original placement.  The contractor will notify the City of any defective 
manhole lids or rings that may present a hazard to the public safety within a reasonable 
amount of time based upon the severity of the defect. 
 
2.1.2.1. 
Hydro vac of sewer lines 
Contractor shall clean sewer lines ranging from 8” to 66” with High-Velocity Jet 
(hydro-cleaning) Equipment: All hydro-cleaning vehicles shall be constructed for 
ease and safety of operation.  The equipment shall have a minimum 500 feet of 1" 
hose.  The equipment shall have a minimum of 2000 psi to be maintained when 
using hydro for cleaning.  Maximum speed of travel will not exceed 45’ per minute.  
The equipment shall have a selection of two or more high velocity nozzles.  Hose 
reels will be governed to not exceed 45’ per minute when retracting hose during 
cleaning cycle, hose footage counters must operate correctly. 
 
2.1.2.2. 
Bucket Cleaning of sewer lines 
Contractor shall clean 6” to 66” with Mechanical Cleaning Equipment (Bucket 
machines).  Bucket machines shall be in pairs with sufficient power to perform the 
work in an efficient manner.  
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2.2. Streets Hydro vac service 
Contractor shall clean sweeper wash bay and provide weekly removal of solids from collector. 
 
Contractor shall Provide Drywell cleaning service: 4’ to 50’ in depth to remove solids. Clean two (2) 
Pump Stations once per year each.  
 
Street Sweeper Wash Bay shall be scheduled for service on Friday mornings starting between 
7:00am and 8:00am, unless otherwise directed by the City Street Superintendent or designee. 
Holidays that fall on a scheduled service day shall be rescheduled by the contractor with the City 
Street Superintendent or designee. 
 
2.3. Water Distribution Hydro vac service 
Contractor shall provide for soft disposal and potholing. Contractor to use vacuum to find water 
mains and other utilities.  Additional required services to include surface cleaning of streets after 
events such as a main break. Service to be provided as needed. Emergency calls must be 
responded to within two (2) hours of request. 975 E. Armstrong Way.  
 
2.4. Fleet Services Hydro vac service 
Contractor shall provide removal of solids and contaminants associated with automotive and 
power equipment maintenance and washing from the sand oil water separators at Fleet Services 
located 975 E. Armstrong Way building I Chandler, AZ and 163 S. Price Rd Chandler, AZ 
 
2.5. Water Reclamation Facilities and Tumbleweed Sand Separator Hydro vac service 
Contractor shall provide hydro vac services to the City’s Water Reclamation Facilities including 
Airport Water Reclamation Facility AWRF, Lone Butte, and Ocotillo Water Reclamation Facility 
OWRF.  The services shall including removing debris from Scum pits, sludge holding tanks, head 
works, EQ basins, grit tanks, etc. 
 
2.6. Water Treatment Plant Hydro vac service 
Contractor shall provide debris removal at the City Surface Water Treatment plan sediment 
basins 
 
2.7. Parks Hydro vac service 
Contractor shall clean Parks wash bay located at 650 E. Ryan Rd. 
 
2.8. Other Hydro Vac Service 
Contractor shall perform hydro vac services for Departments and areas not listed if requested by 
the City at the rate listed on exhibit B. 
 
 
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SITE ADDRESSES 
• 
Water Distribution: 975 E. Armstrong Way, Building K, Chandler, AZ  
 
• 
Fleet Services: 975 E. Armstrong Way building I Chandler, AZ and 163 S. Price Rd Chandler, AZ 
• 
Airport Water Reclamation Facility: 905 E. Queen Creek Rd., Chandler, AZ 
• 
Lone Butte Water Reclamation Facility: Gila River Indian Reservation, 3 miles west of Firebird Lake 
(I-10/Maricopa Road) 
• 
Ocotillo Water Reclamation Facility: 3333 S. Old Price Rd, Chandler, AZ 
• 
Water Treatment Plant: 1475 E. Pecos Rd., Chandler, AZ 
• 
Tumbleweed Sand Separator, 520 E. Ryan Rd., Chandler, AZ  
 
 
 
 
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EXHIBIT B TO AGREEMENT 
PRICING 
 
The hourly rates below shall be the all inclusive rate for the crew and all equipment to perform hydro vac service 
and bucket service. 
Item 
Description 
Estimated 
Hours 
Unit Price 
per hour 
1 
Sewer Lift Station Hydro Vac Service 
25 
$ 150 
2 
Sewer Line Hydro Vac Service 
25 
$ 150 
3 
Sewer Line Bucket Service 
800 
NA 
4 
Streets Hydro Vac Service 
200 
$ 150 
5 
Water Distribution Hydro Vac Service 
160 
$ 150 
6 
Fleet Services Hydro Vac Service 
5 
$ 150 
7 
Airport Water Reclamation Facility Hydro Vac 
Service 
50 
$ 150 
8 
Tumbleweed Sand Separator Hydro Vac Service 
40 
$ 150 
9 
Lone Butte Hydro Vac Service 
50 
$ 150 
10 
Ocotillo Water Reclamation Facility Hydro Vac 
Service 
65 
$ 150 
11 
Water Treatment Plant Hydro Vac Service 
80 
$ 150 
12 
Parks Hydro Vac Service 
6 
$ 150 
13 
Other Hydro Vac Service 
20 
$ 150 
  
Estimated 
Qty 
Each 
14 
Mobilization Flat 
rate 
for mobilization 
and 
Demobilization (rate listed includes both) 
165 
$ 140 
15 
Transportation to landfill Flat rate to haul debris 
to landfill and return 
330 
$ 263.75 
 
Estimated 
Hours 
Unit Price 
per hour 
16 
Confined Space. Cost per hour to be added to 
hourly rates above for confined space work 
50 
$ 174.88 
17 
Emergency Response. Rate per hour to be added 
to hourly rates for emergency response 
50 
$ 42.20 
18 
Traffic Control Allowance 
  
$20,000 
 
 
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EXHIBIT C 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 
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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. 
 
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. 
 
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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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.  
 
A. 
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 
 
t 
 
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EXHIBIT D TO AGREEMENT 
SPECIAL CONDITIONS 
 
NONE 
 
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