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1 City Clerk Document No. City Council Meeting Date: March 21, 2024 CITY OF CHANDLER SERVICES AGREEMENT SOIL REMEDIATION SERVICES AT CHANDLER REGIONAL AIRPORT CITY OF CHANDLER AGREEMENT NO. 4744 THIS AGREEMENT (Agreement) is made and entered into by and between the City of Chandler, an Arizona municipal corporation (City), and WSP USA Environment & Infrastructure Inc. (Contractor), (City and Contractor may individually be referred to as Party and collectively referred to as Parties) and made , 2024 (Effective Date). RECITALS A. City proposes to enter an agreement for soil remediation services 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 and any Subcontractor. Days means calendar days Environmental Laws means all federal, state, and local laws, ordinances, rules, regulations, statutes, and judicial decisions now or hereafter in effect, as amended from time to time, in any way relating to or regulating human health or safety, or industrial hygiene or environmental conditions, or protection of the environment, or prevention or cleanup of pollution or contamination of the air, soil, surface water or ground water. Hazardous Substances means those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, or other petroleum products, toxic pesticides and herbicides, volatile solvents, materials DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 2 containing asbestos or formaldehyde, and radioactive materials. May, Should means something that is not mandatory but permissible. Pre-existing Environmental Condition means the presence, emission, disposal, discharge or release of any Hazardous Substance at, in, on, under or about the remediated soil, however caused, existing on the date of execution of this Agreement, whether the nature and extent of such contamination is known or unknown at the time. Shall, Will, Must means a mandatory requirement. Subcontractor means a supplier, vendor, laborer, consultant, or other entity contracted by Contractor to complete a portion of the Scope of Services. SECTION II: CONTRACTOR’S SERVICES Contractor must perform the services described in Exhibit A (“Scope of Services”) in accordance with 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. Following execution of this Agreement by City, the Contractor will immediately commence work and will complete all services described within 365 days from the date the Contractor is notified to proceed. SECTION lV: PAYMENT OF COMPENSATION AND FEES 4.1 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 and $7,006,678.94 (“Appropriation Amount”) is appropriated for Contractor’s compensation under this Agreement. 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 in Exhibit A 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. 4.2 Applicable Taxes. The Contractor will pay all applicable taxes. The City is subject to all applicable state and local transaction privilege taxes. To the extent any state and local transaction privilege taxes apply to sales made under the terms of this Agreement, it is the responsibility of the Contractor to collect and remit all applicable taxes to the proper taxing jurisdiction of authority. DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 3 4.3 Tax Indemnification. The Contractor and all subcontractors will pay all Federal, state, and local taxes applicable to its operation and any persons employed by the Contractor. The Contractor will and require all subcontractors to hold the City harmless from any responsibility for taxes, damages, and interest, if applicable, contributions required under Federal, state, and local laws and regulations and any other costs including transaction privilege taxes, unemployment compensation insurance, Social Security, and Worker’s Compensation. 4.4 All prices offered herein shall be firm against any increase for the initial term of the Agreement. Prior to commencement of subsequent renewal terms, the City may approve a fully documented request for a price adjustment. The City shall determine whether any requested price increases for extension terms is acceptable to the City. If the City approves the price increase, the price shall remain firm for the renewal term for which it was requested. If a price increase is agreed upon by the Parties a written Agreement Amendment shall be approved and executed by the Parties. 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 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 change in this Agreement, thereby increasing or decreasing the scope of services, cost of performance, or Project schedule, the work will be performed as mutually agreed upon between the City and Contractor prior to Contractor’s performance of any work related to the alteration in the character of work. 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. Alterations in the character of the work that warrant an amendment to this Agreement can result DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 4 not only from changes to the general scope that are ordered by the City, but also from Contractor’s encountering conditions which were (i) not reasonably anticipated, including, but not limited to, changes in applicable law, (ii) subsurface or otherwise concealed physical conditions that differ materially from those indicated in this Agreement, (iii) unknown physical conditions of an unusual nature that differ materially from those ordinarily found to exist and generally recognized as inherent in activities of the character contemplated by this Agreement, and (iv) delays in the schedule not attributable to Contractor that include City or any third-party decision or interference with the schedule, or (v) quantities that exceed those specified in the Approved Remedial Action Plan or Scope of Services. If Contractor encounters an alteration in the character of the work, Contractor will provide the City written notice that details the alteration and the parties will mutually agree upon a change order that addresses the alteration, project schedule, compensation, , or scope of services (if applicable) prior to commencement of the alteration in the character of work. 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. The parties will agree to an adjustment in compensation and schedule extension for any work beyond the Scope of Services or to the extent any rework of the project is required through no fault of Contractor, this shall constitute a change that shall be modified in accordance with this Section. 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, including reasonable direct costs and demobilization costs. 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 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 DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 5 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 General 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 to the extent claims arise 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 (except under Professional Liability Insurance) 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. Notwithstanding anything in this Agreement to the contrary, the City and Contractor hereby waive any right to recover from the other party for any special, incidental, indirect, or consequential damages (including, but not limited to: loss of use, loss of revenue, loss of profit, loss of contracts, loss of product or production, or loss of business opportunity) incurred by either party of for which either party may be liability to any third party, which damages have been or are occasioned by the Scope of Services. 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 agents, representatives, employees, or subcontractors. Contractor is free to purchase such additional insurance as may be determined necessary. DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 6 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: Christina Pryor Name: Timothy Ostapuk Title: Procurement and Supply Senior Manager Title: Vice President, Local Business Leader Address: 175 South Arizona Ave., 3rd Floor Address: 4600 East Washington Street, Suite 600 Chandler, AZ 85225 Phoenix, Arizona 35034 Phone: 480-782-2403 Phone: Email: christina.pryor@chandleraz.gov Email: tim.ostapuk@wsp.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. Provided; however, nothing herein shall limit Contractor’s right to seek judicial relief in accordance with Section 5.28. 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. 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 DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 7 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 and any costs incurred by WSP or subcontractor as a result of the delay, as agreed by the parties. 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, 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 DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 8 ensure that the Contractor and subcontractors comply with the warranty under this provision. 5.21 Lawful Presence Requirement. A.R.S. §§ 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 Forced Labor of Ethnic Uyghurs Prohibited. By entering into this Agreement, Contractor certifies and agrees Contractor does not currently use and will not use for the term of this Agreement: (i) the forced labor of ethnic Uyghurs in the People's Republic of China; or (ii) any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China; or (iii) 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. 5.23 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. 5.24 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. 5.25 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. Contractor's failure to provide a written notice and disclosure of the information as DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 9 set forth in this Section constitute a material breach of this Agreement. 5.26 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. 5.27 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 information, financial account information, or restricted City information, regardless of its format, is no longer necessary, the information must be redacted or destroyed DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 10 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. 5.28 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. 5.29 Survival. All warranties, representations, and indemnifications by the Contractor must survive the completion or termination of this Agreement. 5.30 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. 5.31 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. 5.32 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. 5.33 Time is of the Importance. Contractor will proceed in accordance with the agreed upon project schedule which shall be subject to changes as allowed under the terms of this Agreement. 5.34 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. 5.35 Delivery. All prices are F.O.B. Destination and include all delivery and unloading at the DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 11 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. 5.36 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. 5.37 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. 5.38 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. 5.39 Exhibits. The following exhibits are made a part of this Agreement and are incorporated by reference: Exhibit A - Project Description/Scope of Services/ Contractor’s Proposal Exhibit B - Compensation and Fees Exhibit C - Insurance Requirements Exhibit D - Special Conditions 5.40 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. 5.41 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 fingerprints are submitted to the District. Additionally, the Contractor will comply with the governing body fingerprinting policies of each individual school district/public DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 12 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. 5.42 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. 5.43 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. 5.44 Warranties. Contractor warrants that the Scope of Services will be performed in accordance with Section 2. If Contractor fails to meet the professional standards, Contractor will immediately upon written notice from City: (a) investigate and report to City on the causes of the release; and (b) prepare a corrective action plan for City’s review and approval to address the environmental release , at Contractor’s expense, prior to Contractor’s implementation of the corrective action plan. To the extent applicable to the Scope of Services, Contractor must furnish a one-year warranty on all work and services performed under this Agreement. The warranty shall commence on the date of substantial completion of Contractor’s services. 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. 5.45 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. 5.46 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. 5.47 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. At any point if the funds for the Services under this Agreement are not adopted, appropriated, or approved by the City Council or conditions in Section 5.2 arise to a change in the Scope of Services, Contractor may request additional funds or change to Scope of Services under this Agreement. If additional funds are not approved, the City and the Contractor may mutually agree to an action plan until such approval is given. After which, DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 13 the City and Contractor may mutually agree on a change order that adjusts the cost of performance or Project schedule, or both, and the Scope of Services (if applicable). 5.48 Hazardous Substances. Contractor shall be responsible for proper treatment and transportation of Hazardous Substances under its control, including Hazardous Substances in which it uses, generates, or disposes of, in accordance with all applicable Environmental Laws in carrying out its obligations under this Agreement. In the event Contractor releases to the environment Hazardous Substances, to the extent that a governmental agency with jurisdiction requires reporting, investigation, cleanup, or remedial measures to be taken, Contractor shall, at its sole cost and expense and subject to the corrective action plan in Section 5.44, promptly undertake such required actions. If Contractor discovers a Pre-existing Environmental Condition, Contractor shall immediately notify City in writing as provided in Section 5.8. Contractor will not be deemed the owner, storer, or operator under any Environmental Laws or for Pre-existing Environmental Conditions. 5.49 Environmental Indemnification. Contractor (as “Indemnitor”) agrees to indemnify, defend, save and hold harmless City and its officers, officials, agents and employees as (“Indemnitee”) from and against any and all demands, claims, complaints, losses, damages, actions or causes of action, assessments, liabilities, costs or expenses including, without limitation, interest, and reasonable attorney’s fees and reasonable expenses of investigation and remedial work to be performed in accordance with the corrective action plan approved under Section 5.44 (including investigations and remediation by engineers, environmental consultants and similar technical personnel) asserted against or imposed upon or incurred by Indemnitee arising in connection with, or resulting from, any violation of Environmental Law, including but not limited to, any use, generation, storage, spill, release, discharge or disposal of any Hazardous Substance that is now or comes to be located on, at, about or under the remediated soil or related to this Agreement or because of, or in connection with, the violation of any Environmental Law (hereinafter collectively referred to as “Claims”) to the extent that such Claims are caused by the negligence or willful misconduct of the Indemnitor, its officers, officials, agents, employees, contractors, invitees or licensees. 5.50 TO THE MAXIMUM EXTENT PERMITTED BY LAW AND EXCLUDING ANY CLAIMS ARISING OUT OF OR RELATED TO CONTRACTOR’S WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, CITY AGREES THAT THE LIABILITY OF CONTRACTOR TO CITY FOR ANY AND ALL CAUSES OF ACTION, INCLUDING, WITHOUT LIMITATION, CONTRIBUTION, ASSERTED BY CLIENT AND ARISING OUT OF OR RELATED TO THE NEGLIGENT ACT(S), ERROR(S) OR OMISSION(S) OF CONTRACTOR IN PERFORMING THE SCOPE OF SERVICES, SHALL BE LIMITED TO THE FEES ACTUALLY PAID TO CONTRACTOR BY CITY UNDER THIS AGREEMENT. DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 14 This Agreement shall be in full force and effect only when it has been approved and executed by the duly authorized City officials. FOR THE CITY FOR THE CONTRACTOR By: _________________________________________ By: _________________________________________ Its: Mayor Its: _________________________________________ APPROVED AS TO FORM: By: _________________________________________ City Attorney ATTEST: By: _________________________________________ City Clerk DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 Vice President 15 EXHIBIT A SCOPE OF SERVICES Based on the results of the Engineering Evaluation/Cost Analysis investigation performed by the Contractor, approximately 34,727 cubic yards of soil have been contaminated by toxaphene released by crop dusting operations that occupied the Site from the 1940’s to 1980’s. The depth of the contamination is assumed to be up to two feet deep. The toxaphene was released to the soil due to activities that included chemical mixing, chemical spillage, and washing of equipment. Therefore, if soil is removed from the Site, it is a P-listed waste under the Resource Conservation Recovery Act (RCRA) which requires management as a hazardous waste if soil is transported off-Site for disposal in a landfill. The site also includes a non- permitted landfill that contains materials from the demolition of the Chandler City Hall in the 1960s. Approximately 15,000 cubic yards of soil mixed with demolition debris is present in the landfill. The Contractor prepared a Removal Action Plan (RAP) dated July 26, 2023, to perform the following: Using chemical oxidation, remediate approximately 34,727 cubic yards of impacted soil to below the RSRL of 5.0 mg/kg. Remove approximately 15,000 cubic yards of material from the unpermitted landfill. Contingency to remove up to 3,000 cubic yards of material from the unpermitted landfill. Removal, transportation, and disposal of up to 7,500 cubic yards of landfill material. Contingency to remove, transport and dispose of up to 1,500 cubic yards of material from the landfill. The project cost includes the following Tasks: Task 1.0 – Project Management. This task includes project management including project setup, Health & Safety Plan preparation, subcontractor procurement, subcontractor invoice review, budget tracking, and monthly invoicing. Task 2.0 – VRP. This task involves coordination with the Arizona Department of Environmental Quality Voluntary Remediation Program. This includes providing monthly progress reports during field activities and changes to schedule. Task 3.0 – Soil Treatment. This task involves all field tasks associated with soil treatment including Contractor labor, soil mixing performed by Pacific West Environmental (PWE), chemicals and field support provided by EN Rx, and remediation confirmation soil sample analysis. Task 4.0 – Landfill Removal. This task includes all field tasks associated with removal of up to 15,000 cubic yards of landfill debris including Contractor oversight by a certified asbestos/hazardous materials specialist, landfill removal by PWE, and collection of samples for off-Site disposal waste profile purposes including asbestos samples and pesticide samples. Though asbestos containing materials were not identified during the site investigation, asbestos containing materials may be identified during excavation. Therefore, DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 16 the cost assumes the worst-case scenario that 7,500 cubic yards of debris plus a contingency of 1,500 cubic yards of debris are transported and disposed off-site in a landfill certified to accept asbestos containing materials. If regulated substances in landfill debris are discovered, it is recognized that neither the Contractor nor any of its subcontractors has any authority to act as a generator of hazardous or toxic substances found or identified at the work site. The City will obtain a waste generation identification number and sign all waste manifests or bills of lading. At the City’s request, The Contractor may recommend off-site disposal facilities. Task 5.0 – Reporting. This task involves preparation of the Removal Action Completion Report (RACR) and the No Further Action Report. These reports will be submitted to the ADEQ VRP after approval by the City of Chandler. Because of factors outside of the Contractor’s control, the Contractor does not guarantee the City of Chandler will receive unrestricted use of the Site after completion of the scope of work nor issuance of NFA from ADEQ. The City and Contractor will agree to a project schedule following execution of this Agreement. DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 17 EXHIBIT B COMPENSATION AND FEES The Contractor will provide the services on a time and materials basis with the proposed cost $7,006,678.94. The cost includes a 20% contingency budget should soil require re-treatment and if the landfill demolition materials exceed the estimated 15,000 cubic yards. DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 18 EXHIBIT C 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 DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 19 to fulfill the requirements of this paragraph, the Excess insurance must be “follow form” equal or broader in coverage scope than underlying insurance. The policy will include a waiver of subrogation. 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. The policy will include a waiver of subrogation. 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. The policy will include a waiver of subrogation, if permitted by law. D. Pollution Legal Liability Policy: 1. Contractor shall provide Pollution Legal Liability insurance which shall include coverage for: a. On and off-site cleanup of known and unknown pre-existing conditions arising from the Contractor's facility or from the performance of the Contract or. b. On and off-site cleanup of conditions arising from the Contractor's facility or from the performance of the Contract. c. Third-party claims for on and off-site bodily injury and property damage arising from the performance of the Contract. d. Claims resulting in bodily injury, property damage or cleanup costs associated with a pollution condition from transported cargo if the Scope of Services in the Contract requires the transportation of any hazardous materials. 2. Contractor warrants that any retroactive date under the policy shall precede the effective date of this Contract; and that either continuous coverage will be maintained or an extended discovery period will be exercised for a period of three (3) years beginning at the time work under this Contract is completed. Minimum Limits: Per Loss $ 10,000,000 Products/Completed Operations Aggregate $ 10,000,000 DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 20 Contractor shall cause Subcontractor to endorse its policy to include the following additional insured language: "The City of Chandler shall be named as an additional insured with respect to liability arising out of the activities performed by, or on behalf of the Contractor and its Subcontractors". If the Scope of Services in the Contract requires the transportation of any hazardous materials or regulated substances, then the policy shall provide coverage for claims resulting in bodily injury, property damage or cleanup costs associated with a pollution condition from transported cargo. Contractor warrants that any retroactive date under the policy shall precede the effective date of this Contract; and that either continuous coverage will be maintained or an extended discovery period will be exercised for a period of three (3) years beginning at the time work under this Contract is completed. Additional Policy Provisions Required. A. Self-Insured Retentions or Deductibles. The Contractor shall cause its subcontractors to declare any self-insured retentions and/or deductibles on Subcontractor’s insurance policies and approved by the City. If not approved, Contractor, at City’s direction, will require that Subcontractor’s 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 (except for Professional Liability) against the City, its officers, officials, agents, and employees, for losses arising from Work performed by the Contractor for the City. 6. The Contractor, its successors and or assigns, are required to maintain Commercial General Liability insurance as specified in this Agreement for a DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 21 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. The City, its officers, officials, agents, and employees must be additional insureds to the full limits of liability purchased by the Contractor under this Agreement. DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 22 EXHIBIT D SPECIAL CONDITIONS ACCESS TO SECURED FACILITIES Contract Worker Access Controls, Badge and Key Access Requirements. A Contract Worker shall not be allowed to begin work in any City facility without: (A) The prior completion and the City's acceptance of the required background screening; and (B) when required, the Contract Worker's receipt of a City issued badge. A badge will be issued to a Contract Worker solely for access to the City facility(s) to which the Contract Worker is assigned. Each Contract Worker who enters a City facility must use the badge issued to the Contract Worker. Any and all fees associated with security badging will be assessed in compliance with Chandler City Code §4-22. Key Access Procedures. If the Contract Worker's services require keyed access to enter a City facility(s), a separate key issue/return form must be completed and submitted by Contractor for each key issued. Stolen or Lost Badges or Keys. Contractor shall report lost or stolen badges or keys to the City immediately. A new badge application or key issue form shall be completed and submitted along with payment of the applicable fees prior to issuance of a new badge or key. Return of Badges or Keys. All badges and keys are the property of the City and must be returned to the City within one business day of when the Contract Worker's access to a City facility is no longer required to furnish the services under this Agreement. Contractor shall collect a Contract Worker's badge and key(s) upon the termination of the Contract Worker's employment; when the Contract Worker's services are no longer required at the particular City facility(s); or upon termination, cancellation or expiration of this Agreement. Contractor's default under this Section shall include, but is not limited to the following: (1) Contract Worker gains access to a City facility(s) without the proper badge or key; (2) Contract Worker uses a badge or key of another to gain access to a City facility; (3) Contract Worker commences services under this Agreement without the proper badge, key or Background Screening; (4) Contract Worker or Contractor submits false information or negligently submits wrong information to the City to obtain a badge, key or applicable Background Screening; or (5) Contractor fails to collect and timely return Contract Worker's badge or key upon termination of Contract Worker's employment, reassignment of Contract Worker to another City facility or upon the expiration, cancellation or termination of this Agreement. Contractor acknowledges and agrees that the access control, badge and key requirements in this Section are necessary to preserve and protect public health, safety and welfare. Accordingly, Contractor agrees to properly cure any default under this Section within three business days from the date notice of default is sent by the City. The parties agree that Contractor's failure to properly cure any default under this Section shall constitute a breach of this Section. In addition to any other remedy available to the City at law or in equity, Contractor shall be liable for and shall pay to the City the sum of $1,000.00 for each breach by Contractor of this Section. The parties further agree that the sum fixed above is reasonable and approximates the actual or anticipated loss to the City at the time and making of this Agreement in the event that Contractor breaches this Section. Further, the parties expressly acknowledge and agree to the fixed sum set forth above because of the difficulty of proving the City's actual damages in the event that Contractor breaches this Section. The parties further agree DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1 23 that three breaches by Contractor of this Section arising out of any default within a consecutive period of three months or three breaches by Contractor of this Section arising out of the same default within a period of 12 consecutive months shall constitute a material breach of this Agreement by Contractor and the City expressly reserves all of its rights, remedies and interests under this Agreement, at law and in equity including, but not limited to, termination of this Agreement. DocuSign Envelope ID: 4C9AC8FF-D084-42BE-847D-08D2578079F1