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HomeMy WebLinkAbout2008/12/09 Item 4ITY COUNQL STATEMENT . ~`~~~~ car O~ ~e~~~.v[srA . 12/09/08, Item RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ITEM TITLE: CHULA VISTA AWARDING A SERVICE CONTRACT TO KEENOLOGY CORPORATION dba CIPPLANNER CORPORATION FOR THE PURCHASE AND Ily1FLEMENTATION OF A CAPITAL, IlvIPROVEMENT PROGRAM (CIP) PLAS1NIlVG AND BUDGETING SOFTWARE SYSTEM, AMENDING THE FISCAL YEAR 2008/2009 ~CIP PROGRAM, AND APPROPRIATING $120,000 FROM THE AVAILABLE ~ FTJND BALANCE OF VARIOUS ELIGIBLE FUNDING SOURCES TO THE "CIP MANAGEMENT EQUIPMENT AND SOFTWARE PURCHASE" (OP208) SUBMITTED BY: PROJECT DIRECTOR OF ENGINEERING DIRECTOR OF INFORMATION TECHNOLOGY SERVICES .~ REVIEWED BY: INTERIM CITY 1VIANAGER ~~ 4/STHS VOTE: YES ~ NO ^~ S Y The existing Capital Improvement Budget program was developed in-house approximately 18 years ago using technology (MapObj ects) developed by ESRI that is now considered obsolete. The current program does not allow for multiple users to enter data simultaneously and is very labor intensive to maintain the CIP data. Since this program was built using outdated technology no longer supported by ESRI, ITS cannot enhance the program to allow for multiple users or fully integrate this program with our IFAS or GIS systems. After exploring various alternatives, staff is recommending the purchase of an off.-the shelf system used by other public agencies and recommended by the Government Finance OfFtcer Association (GFOA) for Capital Improvement Budget development and project management. Adoption of this resolution awards a contract to Keenology Corporation dba CIPPlanner Corporation. ENV~ONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines; therefore, pursuant to Section 15 060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 4-1 12/09/08, Item Page 2 of 4 RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION As part of the City's on-going efforts to improve services and reduce operating costs, staff has been reviewing the Citywide CIP workflow activities associated with programming capital improvement projects. The existing Capital Improvement Program (CIP) reporting document and database is a combination of Access Database forms, Geographical Information System (GIS) graphics, Integrated Financial Accounting System (TEAS) data, Excel spreadsheets and Word document narratives. The current reporting database created by Information Technology Services (IT) and Engineering staff has effectively displayed the details of the program since 1990 (the use of MapObj ects to display drawings began in the late 1990s), however, its capabilities are limited, its processing time is quite lengthy and it is in need of extensive updating and/or re-building to meet the growth and storage needs of the City's.entire Capital Improvement Program data. In addition, the existing system is not integrated with the City financial system limiting reporting capabilities and real-time status update on CIPs. Over the past two years, staff has been seeking alternative reporting venues and management software that could supplement, enhance or replace the current database. In cooperation with IT, it was determined that the best and most cost- effective alternative for the City would be to replace the current database and purchase the replacement "off the shelf." Selection Process On September 12, 2008, staff issued a Request for Proposals (REP) to provide for a capital budgeting and planning software system. On September 29, 2008 the City received five (5) proposals in response to the REP. A selection committee comprised of employees from various Departments within the City that reviewed and evaluated the proposals is as follows; Louie Vignapiano (IT), Iracsema Quilantan (Engineering), .Phil Davis (Finance), Tiffany Allen (OBA) and Merce LeClair (Engineering). After reviewing the proposals submitted by the five firms, interviews were conducted with the three most responsive vendors. The companies interviewed were as follows: Com an Address Proposal Cost* Carpe Datum Consulting, Inc. 18449 East Hinsdale Ave Base Cost $66,250 ($225/hr Foxfield, CO 80016 + Travel and Expenses) - excludes IFAS & Microsoft Project inte ration Questica 3190 Harvester Rd Suite 102A Base Cost $67,255 ($175/hr Burlington, Ontario Canada + Travel and Expenses) - xcludes IFAS & Microsoft Project inte ration CIPPlanner 2075 De La Cruz Blvd Suite 115 Base Cost $67,500 ($150/hr Santa Clara, CA 95050 + Travel and Expenses) - includes IFAS integration, Microsoft Project integration . _ ~~ ~,_ Iread art of s stem witn the exception or c.tuestica, base costs were provided assuming 10 users (Questica provided at 15 users) 4-2 12/09/08, Item Page 3 of 4 The interview process and evaluation was comprised of seven categories of evaluation which included the General System Configuration, Capital Request Development, Budget Analysis and Approval, Document Production, Reporting, Project Management and Fund Management. CIPPlanner provided the most cost effective comprehensive Capital Improvement Budget and project management proposal that met the program criteria identified in the RFP. Included in the proposal were report-writing capabilities, detail program sheets with GIS graphics, project specific management capabilities, historical data, fund management/allocation, proposal management and project management. Staff has verified references and received positive recommendations from current customers. The softare system, CIPAce, is 100% in compliance with the Capital Project Monitoring and Maintenance Best Practices defined by the Government Finance Officers Association (GFOA). More recently, CIl'Planner was invited to speak at the Government Finance Officers Association's (GFOA) on November 12-14 where they discussed how to incorporate some of GFOA's Best Practices theories into application. Staff is therefore recommending that a contract be awarded to CIPPlanner in an amount not to exceed $72,740 (maintenance billed separately after first year) for the purpose of procuring and implementing a Capital Improvement Planning and Budgeting software system. System Performance Features CIPPlanner's software system is a web-based enterprise class software application called CIPAce that enables agencies to manage their entire capital program and capital projects from planning and implementation to completion and report writing managed by a single database. Since the program offers a variety of features called "modules", it has the ability to custom tailor a software package that will match the City's processes and required report writing needs as well as import data from the City's existing database which will save time and money because the City will not have to re-enter historical data. In addition, the system has the capability of using existing software (including but not limited to two-way integration with Microsoft Project) and hardware platforms, and allowing for controlled access by Citywide users. It has the capability to upload information from the City's existing financial system (IFAS), which will provide for up to date fiscal data. Currently, CIP project proposals are paper-based and submitted for consideration during the annual budget process. With this software system, departments will have the ability to submit CII' project proposals on a web-based form via the Intranet which will enable staff to track the status of every capital project idea, store them in a central repository, provide solid information about the overall CIP needs of the City and help plan for future funding needs. In addition, the project management module will enable staff to track multiple CIP projects independently and since the modules are interactive, will also allow Administrators to take the data and generate comprehensive reports for multiple purposes, including but not limited to budgeting, status updates, funding allocation, and forecasting (projection). Implementation Schedule It is anticipated that CIPPlanner will begin the configuration analysis and historical data migration in December 2008 followed by financial integration development and software configuration in January 2009 and system verification and validation including training in February 2009. It is anticipated the new system will be operational by the end of February 2009 assuming no unforeseen events adversely impact the implementation schedule. 4-3 12/09/08, Item Page 4 of 4 DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. FISCAL IMPACT For procurement of equipment and software necessary (including professional services) to replace the existing database, staff is recommending appropriating $120,000 from the available fund balance of various eligible funding sources to the "CIP Management Equipment and Software Purchase" (OP208), and amending the Fiscal Year 2008/2009 CIP Program. TOTAL FUNDS REQUIRED FOR PROCUREMENT AND IMPLEMENTATION License u to 12 users ,Base Service, Im lementation Fee and Inte ation $72,740 First Year Su ort not includin maintenance $7,274 Procurement Contingency $7,274 City Contingency (not to exceed) $14,548 Staff Oversight and Implementation $12,164 SQL Server $6,000 TOTAL $120,000 TOTAL APPROPRIATIONS Sewer Service Revenue Fund $30,000 Trans ortation pevelo ment Im act Fund TDIF) $30,000 TransNet $ 3 0, 000 Traffic Si al Fund $30,000 General Fund (In-Kind) NOT Included in A ro nation Total $15,000 TOTAL $120,000 All of the funds recommended above have a CIP component (including acquisition). The General Fund contribution is proposed to be met for by in-kind staff services. There is an annual on-going support/maintenance cost of 18% of the installed value for an estimated cost of $14,000 after one year of implementation. Implementation is estimated in January 2009. Support and maintenance costs (pro-rated beginning January 2010) will be included in the Fiscal Year 2009/2010 ITS Operating Budget. ATTACHMENTS Exhibit A. Two-Party Agreement Prepared by.• Iracsema Quilantan, Assistant Director of Engineering Merce LeClair, Sr. Management Analyst, Engineering Dept. M.•IGeneral ServiceslGSAdministrationlCouncil AgendalClPPlannerlClP Software Program A113 FINALa.doc 4-4 RESOLUTION N0.2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING A SERVICE CONTRACT TO KEENOLOGY CORPORATION dba CIPPLANNER CORPORATION FOR THE PURCHASE AND Il1~IPLEMENTATION OF A CAPITAL IMPROVEMENT PROGRAM (CIP) PL~SINING AND BUDGETING SOFTWARE SYSTEM, AMENDING TI-~ FISCAL YEAR 2008/2009 CIP PROGRAM, AND APPROPRIATING $120,000 FROM THE AVAILABLE FUND BALANCE OF VARIOUS ELIGIBLE FUNDING SOURCES TO THE "CIP MANAGEMENT EQUIPMENT AND SOFTWARE PURCHASE" (OP208) PROJECT WHEREAS, as part of the City's on-going efforts to improve services and reduce operating costs, staff has been reviewing the Citywide Capital Improvement Project (CIP) workflow activities associated with programming capital improvement projects; and WHEREAS, the existing CIP reporting document and database has limited capabilities, its processing time is quite lengthy, and it is in need of extensive updating and/or rebuilding to meet the .growth and storage needs of the City's CIP data;: and WHEREAS, on Septemberl2, 2008, staff issued a Request for Proposals (RFP) to provide for a capital budgeting and planning software system and on September 29, 2008 the City received five proposals in response to the RFP; and WHEREAS, a selection committee determined that Keenology Corporation dba CIP Planner. Corporation .provided the most cost effective comprehensive Capital Improvement Budget and project management proposal that met the program criteria identified in the RFP; and WHEREAS, staff recommends amending the Fiscal Year 2008/2009 CIP Program and appropriating $120,000 from the available fund balance of various eligible funding sources to the "CIP Management Equipment and Software Purchase" (OP208} for the procurement of the equipment, software, and professional services necessary to replace the existing database. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Chula Vista as follows: 1. That it awards a service contract to Keenology Corporation dba CIPPlanner Corporation for the purchase and implementation of a Capital Improvement Program (CIl') Planning and Budgeting Software System. 2. That it amends the Fiscal Year 2008/2009 CIP Program. 4-5 Resolution No. 2008- P age 2 3. That it appro}~riates $120,000 from the available fund balance of various eligible funding sources to the "CIP Management Equipment and Software Purchase" (OP208) project. Presented by Richard A. Hopkins Director of Engineering Approved as to form by Bart C. Miesfeld Interim City Attorney H:\CNGINEER\RE50S\Resos2008\1Z-09-OS\C(PPlanner Reno revised by ec.doc 4-6 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY' S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Dated: j ~i Agreement between City of Chula Vista and CIP Planner for Capital Planning and Budgeting Software System 4-7 Parties and Recital Page(s) Agreement between City of Chula Vista and Keenology Corporation dba CIPPlanner Corporation for Capital Planning and Budgeting Software System This agreement ("Agreement"), dated December 9, 2008 and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1, is between the City-related entity as is indicated on Exhibit A, Paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, Paragraph 3, and the entity indicated on the attached Exhibit A, Paragraph 4, as Service Provider, whose business form is set forth on Exhibit A, Paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, Paragraph 6 ("Service Provider"), and is made with reference to the following facts: Recitals Whereas, as part of the City's on-going efforts to improve services and reduce operating costs, staff has been reviewing the Citywide CIP workflow activities. associated with programming capital improvement projects; and, Whereas, the current database is limited and in need of extensive updating and/or re-building to meet the growth and storage needs of the City's entire Capital Improvement Program data; and, Whereas, on September 29, 2008, City staff issued a Request for Proposals ("RFP") to provide for a capital budgeting and planning software system; and, Whereas, the City received five (5) proposals in response to the RFP; and, Whereas, after City staff completed their review of proposals and interviewed three of the five firms, City staff selected the Keenology Corporation dba CIPPlanner Corporation to provide the services necessary to procure and implement a Capital Planning and Budgeting Software System; and, Whereas, Service Provider warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Service Provider to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals. Next Page starts Obligatory Provisions.) Page 1 4-8 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the .City and Service Provider do hereby mutually agree as follows: 1. Service Provider's Duties A. General Duties Service Provider shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Service Provider shall also perform all of the services described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this Agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Service Provider, from time to time reduce the Defined Services to be performed by the Service Provider under this Agreement. Upon doing so, City and Service Provider agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Service Provider to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they -are within the scope of services offered by Service Provider, Service Provider shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 10(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Service Provider, in performing any Services under this Agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. Page 2 4-9 F. Insurance Service Provider must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract and the results of that work by the Service Provider, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement of work. The insurance must be maintained for the duration of the contract. Minimum Scope of Insurance Coverage must be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001). (2) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). ~. (3) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Professional Liability or Errors & Omissions Liability insurance appropriate to the Service Provider's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. Minimum Limits of Insurance Contractor must maintain limits no less than: 1. General Liability: (Including operations, products and completed operations, as applicable) $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this projectJlocation or the general aggregate limit must be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation Employer's Liability: 4. Professional Liability or Errors & Omissions Liability: Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee $1,000,000 each occurrence Page 3 4-10 Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Service Provider will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: (1) The City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insured with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Service Provider, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Service Provider, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to~ the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. (2) The Service Provider's General Liability .insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. (3) The insurance policy required by this. clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to the City by certified mail, return receipt requested. (4) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. (5) Service Provider's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: (1) The "Retro Date" must be shown, and must be before the date of the contract or the beginning of the contract work. Page 4 4-1 1 (2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract work. (3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the contract effective date, the Service Provider must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. (4) A copy of the claims reporting requirements must be submitted to the City for review. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI"} with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. Verification of Coverage Service Provider shall furnish the City with .original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including .endorsements evidencing the coverage required by these specifications. Subcontractors Service Providers must include all SubService Providers as insured under its policies or furnish separate certificates and endorsements for each SubSrvice Provider. All coverage for SubService Providers are subject to all of the requirements included in these specifications. G. Security for Performance (1) Performance Bond In the event that Exhibit A, at Paragraph 18, indicates the need for Service Provider to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Service Provider shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, http://wwtiv.fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and Page 5 4-12 which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Exhibit A, Paragraph 18. (2) Letter of Credit In the event that Exhibit A, at Paragraph 18, indicates the need for Service Provider to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Service Provider shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Service Provider is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City .Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Exhibit A, Paragraph 18. (3) Other Security In the event that Exhibit A, at Paragraph 18, indicates the need for Service Provider to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Service Provider shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. H. Business License Service Provider agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Service Provider for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this Agreement. The City shall permit access to its office facilities, files and records by Service Provider throughout the term of the Agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 9, and with the further understanding that delay in the provision of these materials beyond thirty (30} days after authorization to proceed, shall constitute a basis for the justifiable delay in the Service Provider's performance of this Agreement. B. Compensation Page 6 4-13 Upon receipt of a properly prepared billing from Service. Provider submitted to the City periodically as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 17, City shall compensate Service Provider for all services rendered by Service Provider according to the terms and conditions set forth in Exhibit A, Paragraph 10, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in Paragraph 18 of Exhibit A, and shall compensate Service Provider for out of pocket expenses as provided in Exhibit A, Paragraph 11. All billings submitted by Service Provider shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 17(C) to be charged upon malting such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 12, as said party's contract administrator who is authorized by said parry to represent them in the routine administration of this Agreement. 4. Term This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate -the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the Service Provider shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 ("Liquidated Damages Rate"). Time extensions for delays beyond the Service Provider's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the Page 7 4-14 effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Service Provider A. Service Provider is Designated as an FPPC Filer If Service Provider is designated on Exhibit A, Paragraph 14, as an "FPPC filer", Service Provider is deemed to be a "Service Provider" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider shall not make, or participate in making or ~in any way attempt to use Service Provider's position to influence a governmental decision in which Service Provider knows or has reason to know Service Provider has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider warrants and represents that Service Provider has diligently conducted a search and inventory of Service Provider's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Service Provider does not, to the best of Service Provider's knowledge, have an economic interest which would conflict with Service Provider's duties under this Agreement. D. Promise Not to Acquire Conflicting Interests Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider further warrants and represents that Service Provider will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider further warrants and represents that Service Provider will immediately advise the City Attorney of City if Service Provider learns of an economic interest of Service Provider's that may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. Page 8 4-15 F. Specific Warranties Against Economic Interests Service Provider warrants and represents that neither Service Provider, nor Service Provider's immediate family members, nor Service Provider's employees or agents ("Service Provider Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within two (2) radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 14. Service Provider further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Service Provider or Service Provider Associates in connection with Service Provider's performance of this Agreement. Service Provider promises to advise City of any such promise that may be made during the Term of this Agreement, or for twelve months thereafter. Service Provider agrees that Service Provider Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve months after the expiration of this Agreement, except with the written permission of City. Service Provider may not conduct or solicit any business for any party to this Agreement, or for any third party that may be in conflict with Service Provider's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Service Provider shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Service Provider, and Service Provider's employees, subcontractors or other persons, agencies or firms for whom Service Provider is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees} arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Service Provider, its employees, agents or officers, or any third parry. With respect to losses arising from Service Provider's professional errors or omissions, Service Provider shall defend, indemnify, protect and hold harmless the City, .its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Page 9 4-16 Service Provider's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Service Provider's obligations under this Section shall not be limited by any prior or subsequent declaration by the Service Provider. Service Provider's obligations under this Section shall survive the termination of this Agreement. For those professionals who are required to be licensed by the state (e.g. architects, landscape architects, surveyors and engineers), the following indemnification provisions should be utilized: (1) Indemnification and Hold Harmless Agreement With respect to any liability, including but not limited to claims asserted or costs, losses, attorney fees, or payments for injury to any person or property caused or claimed to be caused by the acts or omissions of the Service Provider, or Service Provider's employees, agents, and officers, arising out of any services performed involving this project, except liability for Professional Services covered under Section 7.2, the Service Provider agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Service Provider, its employees, agents or officers, or any third party. The.. Service Provider's duty to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Service Provider's obligation and duties under Section Exhibit A to this Agreement. (2) Indemnification for Professional Services. As to the Service Provider's professional obligation, work or services involving this Project, the Service Provider agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attorneys fees, that arise out of, or pertain to, or relate to the negligence, recklessness or willful misconduct of Service Provider and its agents in the performance of services under this Agreement, but this indemnity does not apply liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by City or the agents, servants, or independent contractors who are directly responsible to City, or arising from the active negligence of City. 8. Termination of Agreement for Cause If, through any cause, Service Provider shall fail to fulfill in a timely and proper manner Service Provider `s obligations under this Agreement, or if Service Provider shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Service Provider of such termination and specifying the effective date thereof at least five (5) days before the effective date of such Page 10 4-17 termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared ~by Service Provider shall, at the option of the City, become the property of the City, and Service Provider shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Service Provider `s breach. 9. Errors and Omissions In the event that the City Administrator determines that the Service Providers' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Service Provider shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this Agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Service Provider of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Service Provider shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Service Provider hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Service Provider are personal to the City, and Service Provider shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the SubService Providers identified thereat as "Permitted SubService Providers". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any Page 11 4-18 such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Service Provider shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Service Provider's work products. Service Provider and any of the Service Provider's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Service Provider shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this Agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies. and procedures used by the City in the implementation of same. Upon request by City, Service Provider shall meet and confer in good faith with City for the. purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the parry who is awarded substantially the relief sought. 16. Statement of Costs In the event that Service Provider prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Service Provider shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous Page 12 4-19 A. Service Provider not authorized to Represent City Unless specifically authorized in writing by City, Service Provider shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Service Provider is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 15 is marked, the Service Provider and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Service Provider represents that neither Service Provider, nor their principals are licensed real estate brokers or salespersons. . C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such parry, postage prepaid, registered or certified, with return receipt requested, at the addresses identif ed herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written .document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) Page 13 4-20 Sig~are Fagg to ~eme~ between City of Ch~~a ~~sta . and I~:eenol~gy Corporation dba C~Fia~ner ~°opotifln for CapI Plann%ng and Btgeng S~t~~vare system iT1' ~~~~ ~T~~=[~EOF, +~i~r and Service Pxc~v:%d ~~a~e ex±~~d~ tins een~ent thereby indicating that t~iey ha~ue read and u~zdeFrstc~~l same, aid: uxdoate weir fug mod: eonlplete ca~asent to its terms: Dated: City of C~u1a ~i~ta ~3y: Cheryl {pox, ~.yv~ Attest: I.}onna Norris, Ct,~ Cier~ Apprt~ved a~s~ t4 faun: Bait l~iesfieid, Ititer~rn City Attt~~y Dated: Ebit Dist t~ A~e~rnent { Fitt A. 4-21 Wage 14 Exhibit A to Agreement between City of Chula Vista and Keenology Corporation dba CIPPlanner Corporation for Capital Planning and Budgeting Software System 1. Effective Date of Agreement: December 9, 2009 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of Califomia ()Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ()Industrial Development Authority of the City of Chula Vista, a ()Other: , a [insert business form] ("City") 3. Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Service Provider: Keenology Corporation dba CIPPlanner Corporation 2075 De La Cruz, Suite 115 Santa Clara, CA 95050 5. Business Form of Service Provider: ()Sole Proprietorship ( )Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Service Provide: Page 15 4-22 2075 De La Cruz, Suite 115 Santa Clara, CA 95050 Voice Phone: (408) 213-0416 Fax Phone: (408) 516-3722 Mailing address: P.O. Box 9671, San Jose, CA 95157 7. General Duties: SERVICE PROVIDER shall deploy and implement its CIPAceTM Enterprise Software Application for the City. 8. Scope of Work and Schedule: A. Detailed Scope of Work: (1) Service Provider shall provide the City with twelve user licenses for the CIPAceTM Enterprise Software Application which shall include the following modules: Major Module Sub Module Project Scoping Standard Portfolio Planning Project Ranking Project' Filtering Proposal Mgmt Advanced Planning Multiple Scenarios Fund Management Standard Fund /Budgeting Fund Allocation Capital Budget Mgmt Standard Reporting Standard Reporting Custom Reporting Advanced Reporting Analytics User Management Standard Classifications Standard Utilities User Access Config. Standard Utilities Advanced Utilities Custom Field Mgmt Advanced Classification Smart Text Mgmt Page 16 4-23 Audit Trail Schedule & Resource Project Management Project Dashboard Project Financials Risks and Issues Advanced Project Management Purchase Order Management Contract Management MS Project 2003/2007 ~ 3 Part Inte ration Financial System -IFAS y g (2) Service Provider shall perform the following tasks: Task 1 -Project Kick-Off Service Provider shall meet with City staff to determine the project schedule and project team roles. Task 2 -Configuration Analysis Service Provider shall configure the CIPAceTM application to be consistent with the requirements defined by City staff, up to the extent as allowed by the built-in configurability of CIPAce Software without requiring software code changes. Service Provider shall set up two configuration setup analysis meetings with City staff to define configuration setting of CIPAceTM Software. Software Configuration meetings will define the configuration of the following: • Smart texts, which are nomenclatures of the Software • Custom fields • Classifications • Standard dropdown boxes • User roles and responsibilities in terms of the data that each role needs to manage and view and the underlying processes associated with it reporting needs • Key user profiles including such things as name, position, contact information and email addresses • Business rules and metrics to be measured. This would include workflow, approval cycles, alerts (ie: schedule, cost, modifications, etc.), KPIs. • Standardized City reports required that are not provided in the CIPAceTM application • Reports within the Library of the CIPAceTM Software that require modification • Other customization features under the utility menu of the CIPAceTM Software Task 3: Third Part~Ystem Inte ation Service Provider shall provide the following Integration services for the City's Financial System -IFAS: Page 17 4-24 ^ ~ System architecture analysis ^ Development of a Requirements Specification ^ Develop and implement integration with 3rd party applications The data exchange mechanism shall be one way, batch. Task 4: Historical Date Mi anon . Utilizing a single compatible electronic source (template to be provided), Service Provider shall transfer the historical CIP Planning data and financial data into the CIPAceTM application. This Task shall be completed prior to final deployment. The City shall provide historical data to CIPPlannerTM for migration into the CIPAceTM. Service Provider shall migrate the historical data once for the City as part of the standard software implementation service. Upon completion of the migration, the City shall go through a data validation and user acceptance test prior to "Go Live" for accuracy and completeness. Task 5: Software Confi uration Service Provider shall configure the CIPAceTM application to be consistent with the City's business processes and environment, without requiring software code changes. Service Provider shall meet with City staff to define configuration setting of CIPAceTM Software. Software Configuration meetings will define the configuration of the following: • Custom fields • Smart texts, which are nomenclatures of the Software • Classifications • Standard dropdown boxes • User roles and responsibilities in terms of the data that each role needs to manage and view and the underlying processes associated with it reporting needs • Key user profiles including such things as name, position, contact information and email addresses • Business rules and metrics to be measured. This shall include workflow, approval cycles, alerts (ie: schedule, cost, modifications, etc.), KPIs. • Standardized City reports required that are not provided in the CIPAceTM application • Reports within the Library of the CIPAceTM Software that require modification • Other customization features under the utility menu of the CIPAceTM Software Configuration or change requirement that will require source code changes of the Software will not be covered under Software Configuration. As apre-requisite to the first software configuration setup analysis meeting: CIPAceTM Software implementation teams are formed Service Provider shall provide basic training on CIPAceTM Software to City staff Page 18 4-25 • Service Provider shall provide access to a trial, standard off-the-shell CIPAceTM Software to City staff • City staff will provide CIP business process documentation and diagrams to Service Provider. Task 6: Verification and Validation After CIPAce has been configured and is consistent with the City's business processes and environment, the City shall perform a `Software Verification & Validation' to test functionality of CIPAce with the City's network environment. Service Provider shall assist with the installation of the City's CIPAce configured application in a City server to perform this test. Through the Verification and Validation process, Service Provider shall ensure that the City's required specifications are in agreement with configuration analysis document and historical data migrated. Service Provider shall ensure that CIPAce application functionality satisfies all the City's functional requirements. Service Provider shall incorporate CIPAce application inspections, reviews, audits, walkthroughs, buddy checks, etc. in each module purchased by the City (every module is a phase of the Testing Life Cycle) during the Verification and Validation process. During this Verification, City's staff shall review and examine the configured CIPAce in order to find and point out issues within the application, if any. Task 7 -Production Version Set Un The move to Production server will involve repeating the process described in Task 6, above. Task 8: Training Service Provider shall provide training for users designated by the City. The training shall be provided in conjunction with the production system rollout. Training shall be segmented for all user groups based on the functional focus. The training program shall be conducted at the City -and shall consist of awalk-through demonstration of CIPAce~. Service Provider shall also provide Train-the-trainer ("TTT") training to the designated Super Administrators. The City's Super Administrator(s) will develop standard operating procedures and specific training/user manuals for each functional user group in the City. When completed, the Super Administrator(s) will then be responsible for conducting training for each user group following the standard operating procedures and user manuals for that user group. Service Provider shall be present in providing support and assistance in such training sessions. In addition, Service Provide shall provide online training as determined by the City. Total training should not exceed two (2) days Page 19 4-26 Task 9: Project Closeout Service Provider shall set up a CIPAceTM testing/training Environment for the purpose of data migration integrity testing, user acceptance testing and training. All data in the testing/training environments shall be provided by the City. Any CIPAce~ testing/training environments will be removed after the launch of the CIPAceTM production environment. The completion of the User Acceptance Tests signals the acceptance of the CIPAce~ software application by the City. Service Provide shall ensure acceptance of the CIPAce~ software and successful completion. Successful completion is defined as the 100% passing of all critical user acceptance test scripts as defined by Service Provider and accepted by City of Chula Vista. Service Provider shall repair functionality due to any critical or non-critical tests. Service Provider shall provide the City with the following documents in electronic format: • Configuration Analysis Document • Requirements Analysis Repot • System Integration Specification • Standard training and User Manuals Service Provider shall also provide the City with Help Files with the CIPAce~ software application. These Help Files shall be accessible through the application web browser. Help Files will be editable by designated City users. Service Provider shall provide the standard reports included in CIPAceTM Software. The City may customize up to five reports. B. Software Support and Maintenance Service Provider shall provide advice and assistance through telephone support during normal working hours (8:00 AM to 5:00 PM PST) Monday to Friday, excluding legal holidays. Service Provider shall provide the advice and assistance by phone at 408-213-0135 or email at sup port~a,CIPPlannerTM.com. Service Provider shall provide this support on a "best efforts" basis, and may include suggestions for short-term "work around" solutions, and/or the provision of modifications to the software or documentation as deemed appropriate by Service Provider. The City understands and agrees that the support does not cover any hardware (i.e. computers, sample makers etc.) or third-parry software products supplied by any other third parties. Service Provider shall provide software minor upgrades, patch releases and installation assistance as licensed under this Agreement at no additional cost. Service Provider shall provide program upgrades to the software and documentation on request by the City or when released by Service Provider. Service Provider's policy is to utilize the Internet for software distribution and installation support. Users requiring media will be Page 20 4-27 responsible for both media and shipping costs and the applicable taxes. Users who require onsite installation service by a Service Provider technician will be responsible for the technician's travel expenses and travel time to be charged at the current rate. Service. Provider shall provide the first twelve months of maintenance at no additional charge. Service Provider shall bill the City for maintenance for subsequent years at 18 percent of the licensed value at that time. The City shall give Service Provider thirty (30) days written notice of its intention not to renew. C. Licensing Provisions Notwithstanding the first clause of the second sentence of Section 8, Termination of Agreement for Cause, and Section 12, Ownership, Publication, Reproduction and Use of Material, of this Agreement, the following provisions shall apply. Service Provider grants the City a rion-exclusive and non-transferable right to use CIPAceTM Software, including but not limited to help manuals, training manuals, system documentations, updates and bug fixes solely for the City's internal business purposes. The City shall not access the Software for purposes of monitoring CIPAceTM Software for, but not limited to, availability, performance or functionality for any competitive purpose. The City shall not (i) license, sublicense, sell, resell; transfer, assign, distribute or otherwise commercially exploit or make available to any third party CIPAceTM or the Content in any way; (ii) modify or make derivative works based upon CIPAceTM or the Content; (iii) create Internet "links" to CIPAceTM or "frame" or "mirror" any Content on any other server or wireless or Internet-based device; or (iv) reverse engineer or access CIPAceTM in order to (a) build a competitive product or service, (b) build a product using similar ideas, features, functions or graphics of CIPAceTM or (c) copy any ideas, features, functions or graphics of CIPAceTM. The City shall use CIPAceTM only for the City's internal business purposes and shall engage appropriate and acceptable business practices to prevent the: (i) sending Spam or otherwise duplicative or unsolicited messages in violation of applicable laws; (ii) sending or storing infringing, obscene, threatening, libelous, or otherwise unlawful or tortious material, including material harmful to children or violative ~ of third party privacy rights; (iii) sending or storing material containing software viruses, worms, Trojan horses or other harmful computer code, files, scripts, agents or programs; (iv) interference with or disruption of the integrity or performance of CIPAceTM or the data contained therein; or (v) attempt to gain unauthorized access to CIPAceTM or its related systems or networks. CIPAceTM may be installed on multiple City computers and its use is limited to City internal business. The City shall not allow CIPAceTM to be used by any third party on the City's behalf. Page 21 4-28 Service Provider alone shall own -all right, title and interest, including all related Intellectual Property Rights, in and . to CIPAceTM, Documentation and all copies (in whole or part), any suggestions, ideas, enhancement requests, feedback, recommendations and other information provided by the City or any other party relating to CIPAceTM. CIPAceTM including Documentation is proprietary and is protected by copyright, patent and/or trade secret law. All proprietary notices incorporated in or fixed to the Software including the Documentation shall be duplicated by the City on all copies or extracts thereof and shall not be altered, removed or obliterated. The City's use of the Software and associated documentation is subject to the applicable copyright and patent laws and the express rights and restrictions of these License Provisions. This Agreement does not convey to the City any rights of ownership in or related to the Software and the Intellectual Property Rights owned by Service Provider. Service Provider's name, logo and the product names associated with CIPAceTM are trademarks of Service Provider, and no right or license is granted to use them. The City shall not remove any copyright, trademark, or other proprietary notices from the Software. The City shall not reverse engineer, decompile, or disassemble the Software. Except as expressly provided under these license terms, nothing in this Agreement shall be construed as granting the City any license or other right, by implication or otherwise, under any patent, copyright, trademark, trade secret or other proprietary right of Service Provider or its corporate parent. The Crty may not continue to use the Software upon expiration of this Agreement or termination of this Agreement due to nonpayment by the City. The City is responsible for all activity occurring under the City's use of the Software and shall abide by all applicable local, state, national and foreign laws, treaties and regulations in connection with your use of the Software, including those related to data privacy, international communications and the transmission of technical or personal data. The City shall: (i) notify Service Provider immediately of any unauthorized use of the Software or any other known or suspected breach of security; (ii) report to Service Provider immediately and use reasonable efforts to stop immediately any copying or distribution of Software that is known or suspected by the City or the City's users; and (iii) not impersonate another Service Provider's user or provide false identity information to gain access to or use the Software. Service Provider does not own any data, information or material that the City submits to Service Provider in the course of using the Software ("Customer Data"). The City shall have sole responsibility for the accuracy, quality, integrity, legality, reliability, appropriateness, and intellectual property ownership or right to use of all Customer Data, and Service Provider shall not be responsible or liable for the deletion, correction, destruction, damage, loss or failure to store any Customer Data. Service Provider represents and warrants that it will provide the Software in a manner consistent with general industry standards reasonably applicable to the provision thereof and that the Software will perform substantially in accordance with Service Provider's User Manual help Page 22 4-29 documentation under normal use and circumstances. The City shall not provide any false information to gain access to the Software. Service Provider warrants and represents to the City that: • For a period of ninety (90) days from the date of installing the Software in the City's production server, the Software will substantially conform to the documentation provided for the version of Software licensed under normal use and circumstances. • The Software media shall be free of defects. The City shall not make any changes to the CIPAce~ Software including but not limited to programming and database codes of CIPAce~ Software. Service Provider is not responsible for fixing any bugs or software problems that are caused by such changes. D. Termination by Service Provider for Cause In addition to Section 8, Termination of Agreement for Cause, of this Agreement, Service Provider may terminate the License granted to the City pursuant to this Agreement immediately for a breach of its Intellectual property rights. Upon termination for cause, the City's right to access or use the Software immediately ceases, and Service Provider shall have no obligation to maintain the License Key. E. Warran The following provisions apply only to the CIPAceTM Software. In all other situations and circumstances, the provisions of Section 7, Hold Harmless, of this Agreement shall apply. The City's sole remedy in the event of nonconformity of the Software is Service Provider will replace the defective Software or refund the amount paid for the defective Software. The City shall decide to accept a replacement or request a refund. NO OTHER WARRANTY, EXPRESS OR IMPLIED, IS MADE WITH RESPECT TO THE SOFTWARE, DOCUMENTATION, OR SERVICES TO BE SUPPLIED HEREUNDER, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON- INFRINGEMENT. NO WARRANTY IS MADE REGARDING THE RESULTS TO BE OBTAINED FROM ANY SOFTWARE OR SERVICES OR THAT ALL ERRORS IN THE SOFTWARE WILL BE CORRECTED, OR THAT THE SOFTWARE'S FUNCTIONALITY WILL MEET THE CITY'S REQUIREMENTS. The City acknowledges its responsibility to regularly back-up data and to adequately test prior to deployment each production version of the Software in a configuration that reasonably simulates the City's planned production environment. THE LIABILITY, IF ANY, OF SERVICE PROVIDER OR ITS PARENT AND AFFILIATES FOR LIABILITY ARISING OUT OF BREACH OF WARRANTY, SHALL NOT IN ANY EVENT EXCEED THE FEES -PAID BY LICENSEE FOR THE SOFTWARE Page 23 4-30 OR SERVICES WHICH GIVE RISE TO THE CLAIM. NEITHER SERVICE PROVIDER NOR ITS PARENENT AND AFFILIATES SHALL BE LIABLE FOR LOSS OF PROFITS OR LOSS OR INACCURACY OF DATA. The City is responsible for compliance with all applicable export or re-exports control laws and regulations. F. Proprietary Information Both Parties to this Agreement acknowledges that it may be furnished with or may otherwise receive or have access to information or material which relates to past, present or future products, software, research development, inventions, processes, techniques, designs or technical information and data, and marketing plans (the "Proprietary Information"). To the extent permitted by law, each Party agrees to preserve and protect the confidentiality of the Proprietary Information and all of its physical forms, whether disclosed to the other party before this Agreement is signed or afterward. In addition, a party shall not disclose or disseminate the Proprietary Information for its own benefit or for the benefit of any third party. The previously stated obligations do not apply to any :information that (1) is publicly known; (2) is given to a party by someone else who is not obligated to maintain confidentiality; or (3) a party had already developed prior to the day this Agreement is signed, as evidenced by documents. Neither Party shall take or cause to be taken any physical forms of Proprietary Information (nor make copies of same) without the other Party's written permission. Within three (3) days after the termination of this Agreement (or any other time at the other Party's request), one Party shall return to the other Party all copies of Proprietary Information in tangible form. Notwithstanding any other provisions of this Agreement, the requirements of this Section shall survive termination of this Agreement. G. Date for Commencement of Service Provider Services: (X) Same as Effective Date of Agreement ()Other: H. Dates or Time Limits for Delivery of Deliverables: Deliverables Deliverable No. 1: Project Kick-Off Deliverable No. 2: Configuration Analysis Deliverable No. 3: 3rd Party Integration Deliverable No. 4: Historical Data Migration Deliverable No. 5: Software Configuration Deliverable No. 6: Verification & Validation Deliverable No. 7: Production Version Set Up Start Finish 12/10/08 12/10/08 12/10/08 01/6/09 01/12/09 02/23/09 12/10/08 01/06/09 12/12/08 01/30/09 01/29/09 02/29/08 01/30/08 02/05/09 Page 24 4-31 Deliverable No. 8: Training 02/17/09 02/19/09 I. Date for completion of all Deliverables: February 24, 2009 9. Materials Required to be Supplied by City to Service Provider: The City shall provide historical data to CIPPlannerTM for migration into the CIPAceTM. 10. Compensation: A. ()Single Fixed Fee Arrangement. For performance of all of the Defined Services by Service Provider as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: Milestone or Event or Deliverable payable as follows: Amount or Percent of Fixed Fee 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this Agreement to a time and materials basis of payment. B. (X) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Service Provider as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Service Provider shall not commence Services under any Phase, and shall not be entitled Page 25 4-32 to the compensation for a Phase, unless City shall have issued a notice to proceed to Service Provider as to said Phase. Phase Fee for Said Phase 1. Net CIPAce Cost (includes discounted $57,240 cost/seat, License cost, Server fee, Showcase discount) 2. Configuration Analysis $3,500 3. IFAS Integration (NTE) $10,000 TOTAL $72,740 4. Maintenance Fee (deferred to 2/09/10) 18% of $13,093 $72,740 () 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that,: at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this Agreement to a time and materials basis of payment. C. ()Hourly Rate Arrangement For performance of the Defined Services by Service Provider as herein required, City shall pay Service Provider for the productive hours of time spent by Service Provider in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: (1) ()Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Service Provider of time and materials in excess of said Maximum Compensation amount, Service Provider agrees that Service Provider will perform all of the Defined Services herein required of Service Provider for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). Page 26 4-33 (2) ()Limitation without Further Authorization on Time and Materials Arrangement At such time as Service Provider shall have incurred time and materials equal to ("Authorization Limit"), Service Provider shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Service Provider from providing additional Services at Service Provider's own cost and expense. Rate Schedule Category of Employee Name of Service Provider Hourly Rate ()Hourly rates may increase by 6% for services rendered after [month], 20 , if delay in providing services is caused by City. 11. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by ~ Service Provider in the performance of services herein required, City shall pay Service Provider at the rates or amounts set forth below: ( )None, the compensation includes all costs. Cost or Rate () Reports, not to exceed $ $ () Copies, not to exceed $ $ (X) Travel, not to exceed $2,000: Actual Cost () Printing, not to exceed $ $ () Postage, not to exceed $ $ () Delivery, not to exceed $ $ () Long Distance Telephone Charges, not to exceed $ $ () Other Actual Identifiable Direct Costs: $ not to exceed $ $ ,not to exceed $ $ 12. Contract Administrators: City: Iracsema Quilantan, Assistant Director of Engineering Public Services Building Page 27 4-34 276 Fourth Avenue Chula Vista, CA 91910 Telephone: (619) 409-5976 Fax (619) 691-5171 Merce LeClair, Sr. Management Analyst Public Services Building 276 Fourth Avenue Chula Vista, CA 91910 Telephone: (619) 409-1965 Fax (619) 691-5171 Service Provider: Jeffrey O. Kraft, Sales Manager 2075 De La Cruz Blvd., Suite 115 Santa Clara, CA 95050 Telephone: (866) 364-8054 Fax ( ) - 13. Liquidated Damages Rate: () $ per day. ()Other: 14. Statement of Economic Interests, Service Provider Reporting Categories, per Conflict of Interest Code: (X)Not Applicable. Not an FPPC Filer. O FPPC Filer ()Category No. 1. Investments and sources of income. ()Category No. 2. Interests in real property. ()Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ()Category No. 4. Investments in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. ()Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with .the City of Chula Vista Page 28 4-35 (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. ()Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ()Category No. 7. Business positions. ()List "Service Provider Associates" interests in real property within 2 radial miles of Project Property, if any 15. ()Service Provider is Real Estate Broker and/or Salesman 16. Permitted SubService Providers: 17. Bill Processing: A. Service Provider's Billing to be submitted for the following period of time: (X)Annually -for Maintenance costs only beginning December 9, 2010. OQuarterly (X) Other: $36, 370 is due upon execution of this Agreement. $36,370 is due upon "Go Live" in Production. B. Day of the Period for submission of Service Provider's Billing: ()First of the Month () 15th Day of each Month () End of the Month ()Other: Page 29 4-36 C. City's Account Number: 18. Security for Performance: Performance Bond, $ Letter of Credit, $ Other Security: Type: Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Service Provider sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: Retention Percentage: Retention Amount: $_ Retention Release Event: ( )Completion of All Service Provider Services ( )Other: J:~AttorneylELISAWGREEMENTS\CIP Planner (Keenology Corporation) Agreement DRAFT 2.doc Page 30 4-37