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HomeMy WebLinkAboutStaff Report 4312 City of Palo Alto (ID # 4312) City Council Staff Report Report Type: Consent Calendar Meeting Date: 12/16/2013 City of Palo Alto Page 1 Summary Title: Contract with Finite Matters Ltd. for Budget Document Publication Software Title: Approval of a Contract with Finite Matters Ltd. For Budget Document Publication Software at a Cost Not to Exceed $221,330 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached three-year contract with Finite Matters Ltd. (Attachment A) in an amount not to exceed $221,330 to replace and purchase budget document publication software for the operating and capital budget documents. Executive Summary The Office of Management and Budget (OMB) requires a software tool that compiles financial data, text, and graphics into the final capital budget document and operating budget document. This software tool will support OMB in delivering these documents to the Council in a timely basis and continue to provide Council with documents that are visually appealing. Background For more than a decade, the OMB has used Component Publisher software from Aleuron Systems. Aleuron Systems no longer provides support for its Component Publisher software and the company is no longer in existence. This has required staff to search for an alternate software solution that compiles financial data, manages and automatically formats text, and incorporates graphics throughout the document. Discussion Project Description The City’s annual budget process starts in the preceding fall for the forthcoming fiscal year. The annual proposed budget documents are released to the City Council in late April. To ensure a smooth and City of Palo Alto Page 2 timely publication of the FY 2015 proposed budget documents, implementation of the new budget document publication software needs to be complete by mid-February 2014. The software allows OMB and department staff to input/edit text for narrative, financial, and performance measurement information in the budget documents; queries financial data to automatically compile and tabulate financial tables; allows OMB staff to manage, change, and edit financial mapping, text, graphics, and photos; and produce high-quality, bookmarked PDF budget documents for viewing on the City’s website. Request for Proposal (RFP) Process On September 20, 2013, a notice inviting professional services proposals for the Budget Document Publication Software RPF was posted on the City’s website and sent to three known document publication software companies. The proposal period was 19 working days. Proposals were received from three companies on October 18, 2013. The selection committee comprised of City Staff from the OMB and Utilities Department. The committee reviewed all bids submitted and scored on a variety of technical requirements, cost to the City, and references. Proposals ranged in price from $79,340 to $160,909. The top two companies were invited to demonstrate their products on November 18, 2013. Although Finite Matters Ltd. was the highest priced proposal, after careful analysis, incorporating feedback from staff, and contract/pricing negotiation, the committee selected Finite Matters Ltd. as the most technically qualified professional firm that has submitted the most advantageous proposal to the City. Finite Matters Ltd. has successfully provided database publishing system implementation and support to a wide variety of customers, including many Federal, state, county and local government agencies. The contract is for three years and provides additional support for setting up and publishing the final adopted operating budget document, training, and configuring the operating and capital budgets with the forthcoming new budgeting system. Resource Impact Ongoing funding for the software, support, licensing, and maintenance cost is available and appropriated in the in the City’s Technology Fund. The contract is for three years and the cost is spread as follows:  FY 2014: $113,132.50 (implementation cost, first year license, travel/training)  FY 2015: $89,552.50 (operating budget document set up, capital budget document set up, annual software maintenance, travel/training)  FY 2016: $18,645 (annual software maintenance, operating and capital budget document publishing support) City of Palo Alto Page 3 Environmental Review The approval of this contract is not a project under the California Environmental Quality Act (CEQA). Attachments:  Attachment A: City of Palo Alto Contract No. C14151788 Agreement between the City of Palo Alto and Finite Matters Ltd. for Professional Services (PDF) DRAFT Professional Services Rev. Nov. 1, 2011 1 CITY OF PALO ALTO CONTRACT NO. C14151788 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND FINITE MATTERS LTD. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 16 day of December, 2013, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and FINITE MATTERS LTD., a Virginia corporation, located at 3064 River Road West, Goochland, Virginia, 23063, Telephone (804) 556-1180 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to replace existing budget document publishing software (“Project”) and desires to engage a consultant to provide software and services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from December 16, 2013 through December 15, 2016 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 2 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc CONSULTANT. Conditions or events beyond the control of CONSULTANT may jeopardize the proposed schedule specified in this Agreement or Exhibit “B” hereto. CONSULTANT shall not be responsible for delays in delivery beyond CONSULTANT’s control. Examples of conditions or events beyond CONSULTANT’s control include a change in CITY’s personnel working on the project or an inability to access CITY’s personnel and information. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Two Hundred Twenty One Thousand Three Hundred Thirty Dollars ($221,330.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE; DISCLAIMERS. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. In the event of any error, omission, or other professional negligence, or any breach of the above warranty, the sole and exclusive responsibility of CONSULTANT will be to re- perform the deficient services at its own expense and CONSULTANT will have no other liability whatsoever. Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 3 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc CONSULTANT will not be responsible for any error, omission, or other professional negligence, or any breach of warranty by any other third party software or operating system. The foregoing warranties are in lieu of all other warranties, express or implied, including without limitation the implied warranties of merchantability and fitness for a particular purpose. Notwithstanding anything to the contrary contained herein, consultant shall not, under any circumstances, be liable to city for consequential, incidental, indirect or special damages, including without limitation damages arising out of or related to any malfunctions, delays, loss of data, loss of profit, interruption of service, or loss of business or anticipatory profits, even if consultant or consultant’s authorized representative has been apprised of the likelihood of such damages occurring. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the Work Product (as hereinafter defined) submitted to CITY, provided CITY gives notice to CONSULTANT. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 4 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Tony Luca as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s project manager is Christine Paras, Administrative Services Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2450. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all configuration files, templates, writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement (the “Work Product”) shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the Work Product pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in the Work Product in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such Work Product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the Work Product for use in or application to circumstances not contemplated by the scope of work. Nothing in this Agreement is intended to grant to CITY any rights in any of CONSULTANT’s proprietary computer software programs or any derivatives thereof, including without limitation the software commonly known as PatternStream® (such software programs and derivatives, collectively, the “Software”); CITY’s use of the Software is subject to a separate Software License Agreement entered into between the parties. CITY understands that the Software and associated technologies and services are proprietary to CONSULTANT and shall remain proprietary to CONSULTANT notwithstanding anything to the contrary contained herein. CITY agrees not to resell licensed Software and to comply with the full terms of the Software License Agreement accompanying the Software. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time, upon reasonable prior notice, during the term of this Agreement and for three (3) years thereafter, Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 5 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 6 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will promptly discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall promptly deliver to the City Manager any and all copies of Work Product, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such Work Product will become the property of CITY pursuant to Section 14 above. Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 7 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 8 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements:  All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks.  Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office.  Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 9 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this Agreement, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall promptly inform CITY upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without CITY’s express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 Each party hereto represents and warrants that the individuals executing this Agreement on its behalf have the legal capacity and authority to do so. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement SECTION 26. PROPRIETARY OR CONFIDENTIAL INFORMATION. Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 10 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc 26.1 Of CITY. CONSULTANT understands and agrees that, in the performance of the work or services under this Agreement or in contemplation thereof, CONSULTANT may have access to private or confidential information which may be owned or controlled by CITY and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to CITY. CONSULTANT agrees that all such information disclosed by CITY to CONSULTANT shall be held in confidence and used only in performance of the Agreement. CONSULTANT shall exercise the same standard of care to protect such information as a reasonably prudent contractor would use to protect its own proprietary data. 26.2 Of CONSULTANT. CITY understands and agrees that, in CONSULTANT’s performance of the work or services under this Agreement or in contemplation thereof, CITY may have access to private or confidential information which may be owned or controlled by CONSULTANT and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to CONSULTANT. CITY agrees that, subject to applicable law to the contrary, all information disclosed by CONSULTANT to CITY shall be held in confidence and used only in performance of the Agreement. CITY shall exercise the same standard of care to protect such information as it would use to protect its own proprietary data. 26.3 Exclusions. Notwithstanding the foregoing, this Section 26 shall not apply to information of either party which (i) is in the public domain; (ii) is known and can be shown to be known by the other party prior to disclosure; (iii) becomes part of the public domain by publication or otherwise and is not the result of any unauthorized act or omission on the part of the other party; or (iv) can be demonstrated to have been supplied to the other party by a third party who is under no obligation to maintain such information in confidence. Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 11 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ Senior Asst. City Attorney FINITE MATTERS LTD. By:___________________________ Name:_________________________ Title:________________________ Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS EXHIBIT “E”: SOFTWARE AS A SERVICE SECURITY AND PRIVACY TERMS AND CONDITIONS Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 11 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc EXHIBIT “A” SCOPE OF SERVICES Consultant shall provide professional services for replacement of CITY’s existing budget document publishing software for the operating and capital budget documents. CONSULTANT shall provide the following: Document Publishing Requirement Classification Vendor Response Allows multiple users to input and edit text, financial, or performance information (e.g.: paragraph, tables, graphs) and maintain version control of document components Mandatory PADS satisfies this require- ment. Ability to check spelling Mandatory PADS satisfies this requirement using its and FrameMaker spell checker. Ability to check grammar Desired A third party add-on to FrameMaker enables this function. Review and edit text via web or tablet Desired PADS version 2.0 enables mobile device authoring and editing. Query financial data from a data set (text file) to tabulate financial tables in document Mandatory PADS enables a wide range of data to be published into documents including text files. Interface with SAP to query financial data and tabulate data into financial tables in the document Required PADS satisfies this require- ment. Allows Office of Management & Budget (OMB) staff to control, edit, and make changes to fund, cost center, and general ledger account mapping and tabulation in the document. If OMB staff is not able to control this feature, adequate resources and responsiveness is mandatory from vendor (please itemize the per hour rate for the Required With training, the OMB staff can make changes to the publishing system. CONSULTANT support is available in the event assistance is required. Ability to easily edit, integrate, and format custom Excel charts, graphs, and tables into document Mandatory PADS satisfies this require- ment. Flexibility and ability to add or remove sections or pages Mandatory PADS satisfies this require- ment. Insert photos for capital projects and various other department sections in budget documents. Mandatory PADS satisfies this require- ment. Publish sections of the document to PDF for dissemination to reviewers Required PADS satisfies this require- ment. Automatically compile and paginate document and build the table of contents Mandatory PADS satisfies this require- ment. Produce high-quality, bookmarked PDF for printing and viewing on the City’s website Mandatory PADS satisfies this require- ment. Ability to manage text, data, and publishing components for multiple documents (operating budget, capital budget, municipal fee schedule, long range financial forecast, and others). Mandatory PADS satisfies this require- ment. Attachment A DRAFT Training Requirement Classification Vendor Response Vendor or partner/preferred vendor can provide system functional training to users and system administrator(s). Mandatory CONSULTANT provides training services as part of its offering. Provide functional training documentation for end-users and administrators. Required CONSULTANT provides Pattern- Stream documentation. Implementation Management Requirement Classification Vendor Response Use City’s existing Adobe FrameMaker and Excel templates to use in new publishing software or Convert existing Adobe FrameMaker and Excel templates to required format for new software. Please specify in your response. Desired PADS integrates with FrameMaker and can acquire information from Excel spreadsheets. Integrate OMB staff edits to existing templates and master pages into new documents. Mandatory This will be done as part of the development process. Non-Functional Requirements The RFP specifies a number of non-functional requirements that are mandatory, required, and desired features of the proposed system. The following is CONSULTANT’s response to the non-functional requirements. Cloud Computing Requirement Classification Vendor Response Infrastructure and data is housed by cloud service provider to ensure the system proposed is aligned to CITY’s IT cloud-first strategy Desired The system database and application can be housed in the cloud environment. The FrameMaker Server license however contains limitations as part of the system. Maintainability Requirement Classification Vendor Response System upgrades are fully maintained and managed by vendor Required CONSULTANT provides non-periodic updates to its software based on the annual maintenance. System is “off the shelf” solution and does not require custom development/coding by the vendor or CITY Required PADS and PatternStream are off-the-shelf applications that do not require custom development or coding. They do require publishing project setup. CITY should be able to configure the system with appropriate access privileges Required The proposed applications are completely configurable by the licensee. Attachment A DRAFT System Compatibility Requirement Classification Vendor Response Windows 7 Mandatory PADS satisfies this requirement. Microsoft Office 2007 or higher (Word, Excel) Required PADS satisfies this requirement. Internet Explorer version 9, Google Chrome Desired PADS satisfies this requirement. iOS Desired PADS satisfies this requirement because it works in a browser. PatternStream operates with VM in iOS. Portability Requirement Classification Vendor Response HTML5 (or has one of these features on product roadmap) Desired The native PADS file for- mat is XML which can be converted to HTML5 as needed. Responsive web design for flexible and fluid layouts that adapt to almost any screen Desired The screen layout is con- trolled by the associated CSS and can be modified as necessary. Use on mobile devices, tablets, and smartphones Desired PADS satisfies this require- ment. Support Requirement Classification Vendor Response Technical and problem investigation support on an ongoing basis by the vendor or partner vendor Required CONSULTANT provides support for all application customers on a regular basis. Provide a desktop publishing resource to publish final documents in the spring and early summer. Compile the various document components, paginate, review and edit formatting and document appearance, compile table of contents, publish final document PDF for printing and web viewing Required CONSULTANT shall supports the first publishing cycle of documents by public sector clients and will include that service in this agreement. Development of budget document templates and text and format changes that need to be made to the final document Mandatory CONSULTANT has experienced FrameMaker and budget & CIP document publishing experts that can be applied to ensuring a good presentation. Assistance with trouble shooting financial mapping or other desktop publishing issues Mandatory CONSULTANT has provided assistance to a wide range customers including government document publishers. Attachment A DRAFT Service Level Agreement Requirement Classification Vendor Response Half-day response time for reported issues during normal business hours; vendor response within 1 hour of notification during normal business hours (March, April, May). Mandatory CONSULTANT has a record of rapid response to public sector clients during the publishing schedule including the March through May time frame. Vendor staff availability during regular business hours. Expanded availability (includes weekends and later evenings) during budget season (March, April, May) to assist with reported issues. Required CONSULTANT supports public sector clients during the publishing schedule as needed. Integration Requirement Classification Vendor Response System has web services Application Programming Interface (API) capabilities to integrate with other CITY applications Required Certain functions are avail- able through an interface. Security Requirement Classification Vendor Response System complies with either: ISO 27001 (Information Security Management Systems) or NIST 800-53 Standards (Security and Privacy Controls for Information Systems) Required PatternStream is installed at DoD and the intelligence community customer sites. Scalability Requirement Classification Vendor Response Ability to easily utilize the technology across the organization for different purposes (for additional users and departments with varying processes and workflows and configuration requirements) Desired The application set can be applied in a number of areas to setup and complete data- driven publishing. Data-Liberation Requirement Classification Vendor Response Ability to quickly move all of the data out of the system in an open, interoperable, portable format at no additional cost and in one fell swoop in the event that CITY wishes to discontinue the product. Required The PADS content is in XML format which may be rapidly converted. Published instances are in FrameMaker, PDF, and markup formats. Attachment A DRAFT Business-Continuity Requirement Classification Vendor Response Failover / redundancy / replication of system to another location Required All configuration files and database enable any installed system to be setup to publish documents. Configuration files and the database must be backed up on a regular basis and relocated as necessary. Daily back up of budget document files. Required Budget document files are created on demand using the system publishing function. Content files are maintained in a database that is backed up in accordance with server backup policies and procedures. Same day data restore of lost files. Required Published budget document files can be restored on demand. Database files can be restored from backups. Flexible records retention capabilities. Required Published instances can be retained as necessary. Con- tent files are stored indefinitely. CONSULTANT Products CONSULTANT shall sell CITY its PatternStream Automated Document System (PADS) version 2.0 license. The PADS will work with Adobe® FrameMaker® and FrameMaker Server to enable the following processes: • Distributed authoring and editing of content • Distributed and automated publishing of book sections • Data-driven operating and capital budget book publishing PADS is a server-based system that enables users across the enterprise to author and edit content based on their user access. Users may also publish document sections or subsections based on their access levels. The distributed publishing function includes all text, flat file, and database information combined into a presentation as specified by the document template and publishing configuration file. Completed PDF files are delivered in a browser to users making a publishing request. An administration function allows controls to be setup for user access of content and publishing. PADS version 2.0 is a web-based application that allows users with access to browsers to use the PADS features and functions on any type of device. Inherent in PADS is the PatternStream license. PatternStream is the application that works with Attachment A DRAFT FrameMaker and FrameMaker Server to publish documents from a variety of information sources. PatternStream can acquire information from databases, BI systems, spreadsheets, text files, word processing files, images, and markup files. Once setup, PatternStream can be used time after time to publish changing database and other source information. CONSULTANT Project Services To successfully complete this project, CONSULTANT will provide the following services: • Project analysis and design • Software license installation • FrameMaker template and PatternStream configuration files setup • End product publishing support • Training • Ongoing software maintenance support Project Analysis and Design The project analysis work will dissect the documents and verify their information sources, the work flows, web site, and will recommend specific methods on how to proceed. This task will define and confirm the project work scope, tasks, and plan. The plan will include recommendations in the event the existing environment requires enhancement for optimum system performance. Concepts to be fully understood will include the document and inset revision maintenance requirements. It is anticipated that the current process established by the existing system will be able to be enhanced to present a better and simpler user experience. Any changes resulting from the lessons learned from the analysis will be mutually agreed upon and made at that time. It is not anticipated that any substantial changes will occur that will dramatically affect cost or schedule. However it will be important to understand the complete system functionality and user interface needs. This will enable the implementation of a system that effectively replaces the current system while minimizing user production disruption. Software Installation CONSULTANT personnel will install the software necessary to implement the publishing project at CITY’s offices. Installation will include CONSULTANT PatternStream and PADS software. CONSULTANT assumes that the installation desktop and server computers will be connected to the network with access to the required file repositories and data sources. FrameMaker Template and PatternStream Configuration files Setup The setup of the PatternStream configuration files will be the most time consuming portion of the project. The process is an iterative, top-down method of setting up the application to gather all the document information sources and the presentation through the configuration file and the FrameMaker template. Attachment A DRAFT FrameMaker and Other Template Development CONSULTANT will modify and/or develop the FrameMaker and other templates necessary to publish CITY’s Operating and Capital Budget documents. These templates will be based on the OMB’s current and enhanced documents requirements. PatternStream Pattern Set Template (PSET) File Development CONSULTANT will develop the PSET file to publish CITY’s Operating and Capital Budget documents. This development will include the use of queries or other means necessary to obtain the information required to publish for print and electronic distribution. Support will be available to develop the queries and/or describe the file hierarchy, if necessary. The PSET file will be based on the OMB’s current document format with enhancements as desired. Both the Operating and Capital Budget documents will require separate PatternStream configuration files and FrameMaker templates. Based on CONSULTANT’s current understanding of the information sources and document presentation, the Operating Budget document will require approximately 250 hours of work to setup and the Capital Budget will require 150 hours of work to setup. End Publishing Support CONSULTANT understands that using a new system to publish complex books like the Operating and Capital Budget documents can be a daunting task. As in the case with previous public sector customers, CONSULTANT will support the publishing of CITY Operating and Capital Budget documents. Training CONSULTANT may provide the training necessary to enable CITY personnel to further develop and maintain the system. The training may include specific FrameMaker training topics and will include PatternStream training and system user training. Ongoing Software Maintenance Support CONSULTANT will provide ongoing PADS and PatternStream software maintenance support to the CITY. Seven Major Milestone Tasks: • Software installation and database connection • PatternStream configuration file and template setup •• Operating Budget document •• Capital Budget document • PADS authoring/editing subsystem setup • System testing • Support publishing of Operating and Capital Budget documents Attachment A DRAFT • Training Attachment A DRAFT EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone per the schedule specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones Schedule Project start January 6, 2014 Project analysis meeting and establish system connections January 6, 2014 Begin PatternStream configuration files development January 8, 2014 Software installation and connections January 10, 2014 PatternStream configuration file and template setup finish February 10, 2014 System setup and testing complete February 24, 2014 Support Operating and Budget documents publishing April, 2014 Training July, 2014 Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 14 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $221,330.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s project manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $221,330.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $92,245.00 (Year 1) Task 2 $76,645.00 (Year 2) Task 3 $18,645.00 (Year 3) Sub-total Basic Services $187,535.00 Reimbursable Expenses $33,795.00 Total Basic Services and Reimbursable expenses $221,330.00 Maximum Total Compensation $221,330.00 Attachment A DRAFT Professional Services Rev. Nov. 1, 2011 15 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. C. Training Materials All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $33,795.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Attachment A DRAFT Professional Services Rev Nov. 1, 2011 18 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc EXHIBIT “C-1” HOURLY RATE SCHEDULE Invoice FY Operating Budget document setup and publishing (Two PatternStream Implementers)169.00 250 hours 42,250.00 Billed monthly January 2014 until $35,005.00 spent in FY 2014, then the remainder billed in FY 2015 2014 PatternStream Automated Document System (PADS) license and first year of software maintenance 49,995.00 1 license 49,995.00 February 2014 2014 Travel expenses 4,177.50 5 trips 20,887.50 Billed monthly beginning January 2014 2014 Total Year 1 113,132.50 Operating Budget document setup and publishing (Two PatternStream Implementers)Remainder of task ($7,245.00) billed in July 2014 2015 Training Instructor 1,500.00 5 days 7,500.00 July 2014 2015 Training Material 75.00 5 Training Packages 375.00 July 2014 2015 PADS setup to publish Adopted Operating Budget document 169.00 100 hours 16,900.00 August 2014 (additional services)2015 Travel expenses 4,177.50 1 trips 4,177.50 August 2014 (additional travel expense)2015 Capital Budget document setup and publishing (One PatternStream Implementer)169.00 150 hours 25,350.00 After September 2014 until funds spent 2015 PADS annual software maintenance 9,995.00 1 year 9,995.00 February 2015 2015 PADS setup to work with new budget system and publish Operating Budget 169.00 100 hours 16,900.00 February 2015 2015 Travel expenses 4,177.50 2 trips 8,355.00 February 2015 2015 Total Year 2 89,552.50 PADS annual software maintenance 9,995.00 1 year 9,995.00 February 2016 2016 FY 2017 Operating and Capital Budget document publishing support 173.00 50 hours 8,650.00 March 2016 2016 Total Year 3 18,645.00 Total 3 Year Contract 221,330.00 Product or Service Unit Cost Number/Unit of Measure Total Cost Invoice Month Attachment A DRAFT Professional Services Rev Nov. 1, 2011 18 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc EXHIBIT “C-1” (Continued) Name Hourly Rate Tony Luca, Vice President & Senior Scientist $179.00 Brad Anderson, Vice President of Operations $169.00 Nick Howard, Software Engineer $169.00 System Software Licensing Costs The proposed project as prescribed by FML will require one PADS license. The cost of one PADS license is $49,995.00. This cost includes the necessary PatternStream licenses to complete the proposed project. System Implementation Costs The City of Palo Alto Operating and Capital Budget documents publishing implementation costs are $67,600.00. This cost does not include travel expenses. Training Costs FML provides training for the PADS applications at the rate of $1,500.00 per day excluding expenses and training materials. Training materials cost $75.00 per student per soft- ware application. For this project, FML recommends at least five days of training for a total of $7,500.00 not including travel expenses or training materials. System Support and Maintenance Costs The standard PADS license maintenance cost is 20% of the PADS license purchase price and is $9,999.00 per year. PatternStream project support is typically billed at the hourly rate of $179.00 to 169.00 per hour. Travel Expenses FML has estimated that an average trip to the City of Palo Alto will cost approximately $4,177.50. At this time, we estimate that a minimum of five trips will be necessary which presents a total of $20,887.50. Attachment A DRAFT Professional Services Rev Nov. 1, 2011 19 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Attachment A DRAFT Professional Services Rev Nov. 1, 2011 20 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\PLANNING - CHRIS\CONTRACTS\Finite Matters Limited\C14151788 Contract Draft .doc B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Attachment A City of Palo Alto Information Security Document Version: V2.5 [11/01/2012] Doc: InfoSec 110 Page 1 of 3 EXHIBIT E SOFTWARE AS A SERVICE SECURITY AND PRIVACY TERMS AND CONDITIONS This Exhibit shall be made a part of the City of Palo Alto’s Professional Services Agreement or any other contract entered into by and between the City of Palo Alto (the “City”) and Finite Matters LTD. (the “Consultant”) for the provision of Software as a Service services to the City (the “Agreement”). In order to assure the privacy and security of the personal information of the City’s customers and people who do business with the City, including, without limitation, vendors, utility customers, library patrons and other individuals and businesses, who are required to share such information with the City, as a condition of receiving services from the City or selling goods and services to the City, including, without limitation, the Software as a Service services provider (the “Consultant”) and its subcontractors, if any, including, without limitation, any Information Technology (“IT”) infrastructure services provider, shall design, install, provide, and maintain a secure IT environment, described below, while it renders and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of work implicates the confidentiality and privacy of the personal information of the City’s customers. The Consultant shall fulfill the data and information security requirements (the “Requirements”) set forth in Part A below. A “secure IT environment” includes: (a) the IT infrastructure, by which the Services are provided to the City, including connection to the City's IT systems; (b) the Consultant’s operations and maintenance processes needed to support the environment, including disaster recovery and business continuity planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. “IT infrastructure” refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate. In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing, one or more alternate countermeasure options to the Requirements (the “Alternate Requirements” as set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information Security Manager (the “ISM”). Part A. Requirements: The Consultant shall at all times during the term of any contract between the City and the Consultant: (a) Appoint or designate an employee, preferably an executive officer, as the security liaison to Attachment A City of Palo Alto Information Security Document Version: V2.5 [11/01/2012] Doc: InfoSec 110 Page 2 of 3 the City with respect to the Services to be performed under this Agreement. (b) Comply with the City’s Information Privacy Policy: (c) Have adopted and implemented information security and privacy policies that are documented, are accessible to the City and conform to ISO 27001/2 – Information Security Management Systems (ISMS) Standards. See the following: http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103 http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=50297 (d) Conduct routine data and information security compliance training of its personnel that is appropriate to their role. (e) Develop and maintain detailed documentation of the IT infrastructure, including software versions and patch levels. (f) Develop an independently verifiable process, consistent with industry standards, for performing professional and criminal background checks of its employees that (1) would permit verification of employees’ personal identity and employment status, and (2) would enable the immediate denial of access to the City's confidential data and information by any of its employees who no longer would require access to that information or who are terminated. (g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met or has failed to meet any objective terms and conditions. (h) Implement access accountability (identification and authentication) architecture and support role-base access control (“RBAC”) and segregation of duties (“SoD”) mechanisms for all personnel, systems and software used to provide the Services. “RBAC” refers to a computer systems security approach to restricting access only to authorized users. “SoD” is an approach that would require more than one individual to complete a security task in order to promote the detection and prevention of fraud and errors. (i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the Services’ environment design and deployment are known to the City, and (2) it has implemented measures in accordance with industry best practices applicable to secure coding and secure IT architecture. (j) Provide and maintain secure intersystem communication paths that would ensure the confidentiality, integrity and availability of the City's information. (k) Deploy and maintain IT system upgrades, patches and configurations conforming to current patch and/or release levels by not later than one (1) week after its date of release. Emergency security patches must be installed within 24 hours after its date of release. (l) Provide for the timely detection of, response to, and the reporting of security incidents, including on-going incident monitoring with logging. (m) Notify the City within one (1) hour of detecting a security incident that results in the unauthorized access to or the misuse of the City's confidential data and information. (n) Inform the City that any third party service provider(s) meet(s) all of the Requirements. (o) Perform security self-audits on a regular basis and not less frequently than on a quarterly basis, and provide the required summary reports of those self-audits to the ISM on the annual anniversary date or any other date agreed to by the Parties. (p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City’s performance of random site security audits at the Consultant’s site(s), including the site(s) of a Attachment A City of Palo Alto Information Security Document Version: V2.5 [11/01/2012] Doc: InfoSec 110 Page 3 of 3 third party service provider(s), as applicable. The scope of these audits will extend to the Consultant’s and its third party service provider(s)’ awareness of security policies and practices, systems configurations, access authentication and authorization, and incident detection and response. (q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and regulations, the Confidential Information will be accessible only by the Consultant and any authorized third party service provider’s personnel. (r) Perform regular, reliable secured backups of all data needed to maximize availability of the Services. (s) Maintain records relating to the Services for a period of three (3) years after the expiration or earlier termination of this Agreement and in a mutually agreeable storage medium. Within thirty (30) days after the effective date of expiration or earlier termination of this Agreement, all of those records relating to the performance of the Services shall be provided to the ISM. (t) Maintain the Confidential Information in accordance with applicable federal, state and local data and information privacy laws, rules and regulations. (u) Encrypt the Confidential Information before delivering the same by electronic mail to the City and or any authorized recipient. (v) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct, indirect or punitive damages whatsoever including, without limitation, damages for loss of use, data or profits, arising out of or in any way connected with the City’s IT environment, including, without limitation, IT infrastructure communications. Part B. Alternate Requirements: Attachment A