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HomeMy WebLinkAboutCity Council Meeting - Council - Agenda - 7/3/2018adccW18328 CITY OF KENT Council MeetingAgenda Mayor Dana Ralph Council President Bill Boyce Councilmembers Marli Larimer Brenda Fincher Satwinder Kaur Les Thomas Toni Troutner Dennis Higgins July 3, 2018 This page intentionally left blank. KENT CITY COUNCIL AGENDA July 3, 2018 Council Chambers Mayor Dana Ralph Council President Bill Boyce Councilmember Marli Larimer Councilmember Dennis Higgins Councilmember Brenda Fincher Councilmember Les Thomas Councilmember Satwinder Kaur Councilmember Toni Troutner ********************************************************************* SPECIAL CITY COUNCIL MEETING AGENDA 5 p.m. 1. CALL TO ORDER/FLAG SALUTE 2. ROLL CALL 3. AGENDA APPROVAL Changes from Council, Administration, or Staff 4. PUBLIC COMMUNICATIONS A. Public Recognition B. Community Events C. Economic and Community Development Report 5. REPORTS FROM COUNCIL AND STAFF 6. PUBLIC HEARING 7. PUBLIC COMMENT - The Public Comment period is your opportunity to speak to the Council and Mayor on issues that relate to the business of the city of Kent. Comments that do not relate to the business of the city of Kent are not permitted. Additionally, the state of Washington prohibits people from using this Public Comment period to support or oppose a ballot measurement or candidate for office. If you wish to speak to the Mayor or Council, please sign up at the City Clerk’s table adjacent to the podium. When called to speak, please state your name and address for the record. You will have up to three minutes to provide comment. Please address all comments to the Mayor or the Council as a whole. The Mayor and Council may not be in a position to answer questions during the meeting. 8. CONSENT CALENDAR A. Minutes of June 19, 2018, Workshop and Council Meeting – Approve B. Payment of Bills – Approve C. Excused Absence for Councilmember Higgins - Approve D. Excused Absence for Councilmember Thomas - Approve E. Backup and Recovery System Contract for Technical System Upgrade – Authorize F. Contract with Rimini Street, Inc – Authorize G. Revisions to Ch. 9.38 KCC – Parking – Ordinance - Adopt H. Code Enforcement Civil Infractions Ordinance – Adopt I. WSDOT Grant Funds for Roundabout at Willis Street (SR 516) and 4th Avenue South – Authorize J. Lease Agreement with NC Machinery for an Excavator – Authorize K. 1st Avenue North Improvements – Accept as Complete L. Washko Real Estate Holdings – Aldarra Corporate Park Bill of Sale – Accept M. Star Rentals – Bill of Sale – Accept N. Hogan Park Field One Synthetic Turf Conversion Project – Accept as Complete O. First Amendment to the 2017 Annual Action Plan – Authorize P. Second Amendment to the 2016 Annual Action Plan - Authorize 9. OTHER BUSINESS 10. BIDS A. East Valley Highway Preservation South 180th Street to South 196th Street Project – Award 11. EXECUTIVE SESSION AND ACTION AFTER EXECUTIVE SESSION 12. ADJOURNMENT NOTE: A copy of the full agenda is available in the City Clerk's Office and at KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk's Office in advance at 253-856-5725. For TDD relay service, call the Washington Telecommunications Relay Service at 7-1-1. AGENDA APPROVAL Changes from Council, Administration, or Staff This page intentionally left blank. PUBLIC COMMUNICATIONS A) Public Recognition B) Community Events C) Economic and Community Development Update This page intentionally left blank. REPORTS FROM COUNCIL AND STAFF Mayor Ralph: Derek Matheson/Administration: Council President Boyce: Councilmember Fincher: Councilmember Higgins: Councilmember Kaur: Councilmember Larimer: Councilmember Thomas: Councilmember Troutner: This page intentionally left blank. Page 1 of 9 OFFICE OF THE MAYOR Derek Matheson, Chief Administrative Officer Phone: 253-856-5700 Fax: 253-856-6700 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: 07/03/18 TO: Mayor Ralph Councilmembers FROM: Derek Matheson, Chief Administrative Officer SUBJECT: CAO Report for Tuesday, July 03, 2018 The Chief Administrative Officer’s report is intended to provide Council, staff and community an update on the activities of the City of Kent. ADMINISTRATION • A reminder our next city council budget mini-retreat is coming up on Friday, July 13, at the Platform apartments. Lunch is at 12:30 p.m. followed by business at 1:30 p.m. We’ll talk about revenue assumptions for 2019-20 and updates to our revenue and expenditure forecast since our last mini-retreat in March. • We’re moving forward to fill Judge Karli Kristine Jorgenson’s position by the end of the year. The mayor, CAO, and HR director met to divide the 10 applications into interview and non-interview groups. A team from the Law Department, our public defender firm, Municipal Court, and Police Department will review the first team’s work. • Our communications and multimedia teams are working on an internal campaign to launch our new strategic framework (vision, mission, goals, and values) the city council adopted on June 19. • Communications: We are working on developing and formalizing our social media standards, working on the procurement of Cision, a news release distribution and media mention measurement tool, and starting a SWOT analysis of our current internal and external communications. We are in planning mode for our editorial calendar, helping to promote Parks & Rec month as well as the new RASKC pet licensing campaign, the Cruisin’ Kent car show, Experience Historical Kent and the pet adoption event. • Community Engagement: Uriel Varela is currently working with Kent Lions, Living Well Kent, King County Public Health and the City of Kent’s Human Services department to bring Electronic Benefits Transfer services (EBT) to the Kent Farmers Market. The idea is to make EBT available for one year before the farmers market is eligible to provide the Fresh Bucks program. The Kent’s Farmers Market currently has one of the highest WIC Farmers Market Nutrition Program (FMNP) participation rates in the state. • Neighborhood Program: Residents in the Cambridge neighborhood on the West Hill reached out to Kent’s Neighborhood Program Coordinator, expressing interest in organizing their neighborhood. This neighborhood consists of over 1,500 homes, two Page 2 of 9 schools, two parks and a fire station. The group will be holding a meeting in July to talk about the process to become formally recognized. ECONOMIC AND COMMUNITY DEVELOPMENT Code Enforcement • The Command Labor building at Lincoln Avenue & Smith Street - the site of many public safety issues including transient occupation, fires and rodents – was demolished in mid-June as a result of Code Enforcement efforts. The owner is now working on debris removal. Economic Development • ECD staff met with acquisitions/dispositions team members of a major development group that works in fields of industrial, commercial, and mixed-use to explain Kent’s economic picture. • Facilitated a meeting with Mayor Ralph and the President of Green River College to discuss collaboration on workforce development initiatives and Kent Valley competitiveness. • Facilitated meeting with the Director of the Starbucks Roasting Plant in Kent (1 of 5 in the world) and Mayor Ralph re: their operations and to arrange tour dates with for an upcoming visit by Kent’s sister city delegates from Japan. • Attended the Seattle Metro apprenticeships collaborator kick-off meeting at South Seattle College. The City of Kent is a direct funder of the Aerospace Joint Apprenticeship Committee, which has a training center in Kent; the city also home to Apprenticeship and Nontraditional Employment for Women organization. Staff also attended a City-co-sponsored workshop focused on workforce retention at the Advanced Manufacturing Prep Training Center. • Staff consulted with Community Attributes Inc. as it begins work for the Center of Excellence on Global Trade and Supply Chain Management occupations definition for Washington State. The City’s interest pertains to the Kent Valley’s contributions to this sector from a regional and state economic competitiveness standpoint; the study’s methods; and possible extension of work to support local strategies for promotion of careers in this sector. • ECD met with the landlord representation of Panther Lake Shopping Center, and shared insights and discussed the state of play for potential retail tenants. • As a sponsor of the New Space Conference, ECD staff partnered with FIRST Washington to bring awareness to the concentration of aero and outer space innovators in Kent, and to recruit mentors for robotics teams - aiming to inspire students for STEM related career fields. • Staff continues media outreach regarding the history of the made-in-Kent Lunar Rover and participated in a studio shoot with Mossback NW and KCTS Channel 9. The TV program featuring the history of the Lunar Rover will air in July. • Staff completed individual meetings with Kent’s Lodging Tax Committee (LTAC) members to bring them up-to-date on the formalization of the committee’s operations and grant award funding cycle. Staff will make a formal presentation to the LTAC in July. Long Range Planning • Long Range Planning and Public Works Transportation Staff met with Sound Transit and other South King County municipalities regarding ST3’s System Access Fund. Sound Transit has been developing a strategy for how to disburse the $100 million ($20 million per subarea) intended for increasing multimodal access to transit. ST staff Page 3 of 9 shared the proposed process, which would be similar to a grant ($5 million each round), with review criteria including expected increases in ridership, equity, connectivity, and rider experience. ST invited city staff to give input on the proposed process; Kent staff will meet internally to determine how to best leverage this opportunity and what comments to submit to ST. While the dollar amount per round is not very high, it’s an exciting option to pursue in terms of increasing the utility and usability of the high capacity transit in Kent (existing Sounder and future light rail stations). Kent would be competing against 10-15 other agencies for this funding source. FINANCE • The State Auditor’s Office (SAO) has completed their annual audit of the City’s financial statements and has issued a clean audit opinion. With the opinion letter in hand, Finance is again submitting our Comprehensive Annual Financial Report (CAFR) to the Government Finance Officers Association for consideration of their Certificate of Achievement for Excellence in Financial Reporting Program. SAO will still be on site likely through summer to conduct their annual Accountability Audit of the City. • The 2019 / 2020 budget process is in full swing. All departments have already met with finance on their base budget needs and will begin meeting with the Mayor, CAO, and finance in July. HUMAN RESOURCES Labor, Class & Compensation • Interviews began for the Labor Analyst job opening. • Work continues on the citywide job description format update. • Work continues on updating City policies, including re-numbering and department assignments. • Work continues on reclassifications from various departments. • The HR Department is participating in the AWC salary survey. • Schedule preparation has begun for the upcoming collective bargaining with KPOA. Risk Management • Depositions in the Van Horn v. Kent matter will take place on 6/25 and 6/26. • Emergency Notification Task Force met on 6/21 and the next step will be a demo to Task Force members and other stakeholders. IT will work with Fire Emergency Management to apply for grant money which will lower the cost of this enhancement to the City. Administration • Public Works Operations Fleet Services began an analysis of its current procurement process by working on a Value Stream Analysis of the ordering, purchasing and up- fitting process. A group of approximately 12 staff concentrated on the ordering process at the first meeting. The next meeting will involve developing some metrics around the ordering process and creating a value stream analysis of the up-fitting process • The Innovate Advanced training group will be presenting their Ignite! presentations on July 11. Ignite! presentations demonstrate what process improvement concepts have been learned over the 4.5-day training and how they are or will apply them to processes they impact. Benefits • Four companies gave presentations as part of our recent RFP for a new Benefits Broker and a finalist was selected. The Benefits Division is now in the process of negotiating Page 4 of 9 the details of a potential contract before taking this information to the Operations Committee of the City Council. Recruitment • Council Admin Asst. II written exercise and interviews were held on Tuesday, June 26. • An Orientation workshop for Assistant Chief applicants in the Police Department was held on Tuesday, June 26. • A meeting is scheduled for Thursday, June 28 for the screening committee to review the applications submitted by candidates for the City’s upcoming judicial vacancy and put forth recommendations to Mayor Ralph and CAO Derek Matheson. Community Outreach • The next Cultural Community Conversation will be held on Wednesday, July 11 from 9-10 a.m. in Council Chambers. The speaker will be Joanne Lee of the state’s Leadership Development group who will be talking about multiple generations in the workforce. • The University of Phoenix will be holding a Diversity Day in ShoWare Center on July 13 featuring guest speakers, workshops, and a job fair. City HR Director Marty Fisher will be a panelist for the discussion. INFORMATION TECHNOLOGY • Service Desk Replacement - This project will implement an ITSM Service Desk tool to promote greater IT operational efficiencies and deliver faster high-quality Service Desk responses. • Web, Email and AV Filtering Upgrade - This project upgrade our current web, email and AV filtering solutions enabling us to harden our network protecting the City's information assets. • Mobile Device Management Solution - Enable Technical Services to deploy and manage mobile devices drastically reducing time by individually deploying and managing mobile devices. • Provide inventory of mobile devices to prevent or significantly reduce time spent maintaining licenses and physical inventory. • Reduce the City of Kent exposure to risk as a result of rouge applications, access to unsecured networks and nefarious sharing of assets. • Information Technology operational support for June 12, 2018 to June 26, 2018 o Number of tickets opened – 340; number of tickets closed - 352 LAW • Assisted Public Works in the acquiring of property for wetland mitigation. • Assisted Public Works in acquiring the last property rights required for WSDOT certification of right-of-way necessary for the South 228th Street UPRR Grade Separation Project. • Prevailed on an RALJ appeal in superior court in Kent v. Mouang Saechao, K116330FV. The Defendant appealed a conviction for violating an anti-harassment order and alleged the municipal court trial judge abused his discretion by allowing an amendment to the statutory authority for the charge at the start of the trial. The superior court upheld the defendant’s conviction and held he failed to show any substantial prejudice that resulted from the municipal judge’s decision. • Handled two code enforcement mitigation hearings on June 20th: o The first hearing was for violations at an apartment complex, including accumulation of litter, trash and refuse, infestation of insects or rodents, and Page 5 of 9 failure to obtain adequate solid waste handling service. Prior to the hearing the dumpster area was cleaned, and adequate solid waste handling service was obtained by the apartment complex, and they provided receipt showing several thousand dollars paid to abate the nuisance. Because corrective action was taken, the City imposed only a $300 fine. o The second was a hearing regarding a property that is approved for single-family residential use that is being used as a used car storage lot. The owner applied for a home occupation business license and assured City planning staff that only a portion of the home (maximum 300 square feet) would be used for an office, and no more than one vehicle would be parked on site at any one time. • Continued to assist the Clerk’s office with public records requests; HR with a number of complicated and sensitive employment issues; Parks, ECD, and PW with two Sound Transit development projects and the YMCA transaction, and property acquisitions in development of the 228th and 224th corridor projects and various levee projects, including Lower Russell Road and Milwaukee II. • Continue to negotiate small cell franchises and telecommunications facilities leases. PARKS, RECREATION, AND COMMUNITY SERVICES Recreation • Lake Meridian Beach opened for the summer season with lifeguards on-duty 7 days a week, 12:00pm to 7:00pm through September 3rd. The Parks Department employs 18 lifeguards to support the daily schedule at this very busy park. We expect over 100,000 visitors at the beach this summer with more than 2,000 visitors taking advantage of the free Life Jacket Loaner Program. • The Annual Spring Dance Recital was a great success featuring two sold out performances with over 1,030 audience members. 225 dancers practiced for weeks in preparation for the event. These programs include a wide variety of dance styles from ballet, jazz, and tap to hip hop, lyrical and Irish step. Dance program outcomes combine a variety health and social benefits while fostering inclusiveness and connection to community. Senior Activity Center • The Seattle Theatre Group Dance Workshop was a huge success. Nikki Long, a Paramount Theater professional dancer, who has performed on Broadway and around the world, taught a dance inspired by the musical, The Color Purple, currently playing at the Paramount Theatre. This event is one of a nine session program called STG Broadway at Kent featuring dance workshops at the Kent Senior Activity Center and the Kent Regional Library. Kent was selected after the Senior Center hosted an extremely successful hip hop dance workshop inspired by the musical Hamilton in January 2018. • The Deli BINGO Luncheon continues to be a great fundraiser for the senior lunch program. This month 90 participants enjoyed lunch and 4 BINGO games with prizes awarded by Concerto Healthcare. The next Deli Bingo session is slated for Wednesday, July 11 and features alternating sing-along songs by local Rock 'n Roll Singer Andy Burnett and Bingo prizes donated by Talbot Center for Rehab and Healthcare. • Day Trips and outings continue to be very popular for Kent Senior Activity Center participants. These are excellent outlets for seniors to get out into nature or other settings that they might not otherwise get to on their own. Sold out trips this month included a guided tour of the Ginko Petrified Forest; an adventure to Pt. Townsend, exploring quaint local shops and eateries; a nature walk to the Middle Fork of the Page 6 of 9 Snoqualmie Trail; a bus trip to the Ballard Locks with lunch at Fisherman's Terminal; and a hike to Otter Falls on the picturesque Taylor River. • The Kent Senior Readers Theater had excellent response for auditions and the 2018 Fall casts are selected for its plays on October 22 and 29. The official name of this group is "The Knot Quite Write Players," reflecting the fact that several of the founding members were---and continue to be---knitters and now they are writing many of their own plays. Youth-Teen-Adaptive • The Crisis Clinic Networks for Life presented an exceptional and timely staff training focused on youth suicide prevention. Full time and part staff are now aware of identifiers for adolescent stressors, possible behaviors for concern, understanding the three components in suicide conversation and identifying at least four resources for a suicidal person. • Staff presented at the Kent Providers Network, a group comprised of representatives from different kinds of social service, health, and educational agencies in the area that serve mostly low-income Kent residents. The presentation focused on information about Parks Department summer programs including day camps, playgrounds and health/exercise outreach programs. POLICE Staff Changes - Hiring/Retirement/Recruitment/ Leaves/Promotions • Lateral Officer John Rainey will start on August 1. • Officer Joshua Bava will be promoting to Sergeant tentatively August 5. Significant crime activities/arrests/investigations • On June 16, Kent patrol units responded to a welfare check on a trail in the area of 24600 26th Pl S. A female victim, 18-year-old Des Moines resident, was located next to the trail in the wooded area. The victim was unconscious and unresponsive with labored breathing. She sustained one fatal gunshot wound, lifesaving efforts were attempted; however, she succumbed to her injuries and was pronounced dead at the scene. On June 19, Kent Detectives received information that led them to a house in South Seattle where the victim’s missing car was located, parked in the driveway. The suspect left the residence fleeing in the victim’s vehicle. A felony stop was attempted; however, the suspect, a 19-year-old SeaTac resident, fled and a pursuit ensued leading into Des Moines. Kent Police with the assistance of Des Moines Police were able to take the suspect into custody without incident. • On June 25, officers were at Mosaic Hills trying to identify a male that was reported to be taking wheels off a vehicle in the lot. During a foot pursuit they attempted to tackle the male and landed on the ground where the suspect continued to struggle and trying to get free. Due to the impact during the tackle one officer was knocked unconscious. Officers were able to subdue the male and hold him in place until additional officers arrived. Two officers were checked for concussions and one for a hand injury. Thankfully all 3 were cleared at Valley Medical Center. Major emphasis patrol • Racer Emphasis June 15 – very light racer crowd. School issues • Selected Officer Kevin Strong as School Resource Officer. Events and awards Page 7 of 9 • On June 21, Chief Padilla attended the Saltair Hills Neighborhood meeting. • On June 23, Chief Padilla attended the Linda Sweezer Memorial Juneteenth Festival and Celebration. • On June 23, Commander O’Reilly attended the Sikh Festival. PUBLIC WORKS Design • S 228th St UP Grade Separation – Secured Possession and Use for final parcel. Preparing Right-of-Way certification package for submittal to WSDOT Jun 28. • East Valley Highway Great Wall Mall Sanitary Sewer Repairs – Plans are in review. Reaching out to owner to coordinate construction needs. • Underpass Lighting at James Street – Was notified of scope change to colored lights. Preparing updated documents for submittal to WSDOT and looking to identify funding to cover funding due scope change. • Naden Clearing and Grubbing – Bids open Jul 10. • Horseshoe Levee Repairs –Design complete. Scheduling meetings to discuss construction options Environmental • Lower Russell Levee – Reviewing 90% plans with comments due to Toby Hallock by Friday, June 29. • Signature Pointe Levee - We are beginning an alternative analysis for the levee improvements needed at the Signature Pointe Apartments. • Milwaukee II Levee - The alternative analysis is completed and has been provided to the Flood Control District for review and adoption. • Downey Farmstead - Utility relocation by PSE and Century Link is under way. • Upper Mill Creek Dam Improvements –Bids are scheduled to be opened on Tuesday, July 10. • Public Education and Outreach - We will be performing public education and outreach presentations for the Dog Daze and Feline Fantasies Pet Adoption Event, S.O.A.K.S. Event, and Pacific Cascade Mustang Car Show. Construction • LID 363: S 224th St Improvements – 84th Ave S to 88th Ave S (Ph 1): o The closure of 88th Ave S between 93rd Pl S and 22401 88th Ave S will be in place until the end of July 2019. o 84th to SR 167 – Pier 1 is ready for girder placements this week. o SR 167 / Median – Girder placements for Span 1 over Southbound SR 167 will be taking place this week on Monday night and Tuesday night. Girder placements for Span 2 over Northbound SR 167 will be taking place this week on Wednesday night ant Thursday night. Traffic impacts noted below. o SR 167 CLOSURES – Monday and Tuesday nights Southbound SR 167 will be fully closed from 1:00 AM until 4:30 AM. Lane closures will begin at 10:00 PM. Wednesday and Thursday nights Northbound SR 167 will be fully closed from 11:30 PM until 3:15 AM. Lane closures will begin at 7:00 PM. Detour routes directing traffic onto East Valley Highway (Central Ave N) will be in place between 84th Ave SE and SE 212th St. The first Traffic advisory was sent out on 5/30 with additional information released to the Public 6/11 and 6/18. • Cambridge Reservoir Recoating and Fall Protection Improvements: On site activities will begin in July. Page 8 of 9 • 228th St Grade Separation: Potelco is anticipating finishing their PSE work early to mid-July. Interurban trail will be restored and opened immediately following the completion of this work. • 2018 Asphalt Overlays: Work began on this project on Monday (June 18). Work is starting in the Kent Ridge Estates neighborhood and will continue for several weeks. The Meridian Glen neighborhood will follow. • Kent Springs and Pump Station No. 4 Electrical Upgrades: The Notice to Proceed will be issued on Monday, July 16. • 2018 Paint Line Striping and RPM Replacement: Paint line striping replacement will proceed on Thursday, July 5. • 2018 Crack Sealing: The Notice to Proceed will be issued on Monday, July 9. • 132nd Ave SE Pedestrian Improvements: Council has authorized the award of this project to Axum General Construction, Inc. of Maple Valley, WA. • Lake Meridian Estates Storm Drainage Improvements, Ph 2: Council has authorized the award of this project to Tucci & Sons, Inc. of Tacoma, WA. • James Street Pavement Rehabilitation (Central Ave. N, to Clark Ave. N.): Council has authorized the award of this project to Kiewit Infrastructure West Co. of Vancouver, WA. A Community Meeting to discuss traffic impacts and options related to this project is scheduled for Monday, July 2. • Development/Utility Projects o Yorkshire Neighborhood Natural Gas Main Replacement – PSE is replacing the existing underground natural gas main on S 252nd Pl and S 253rd St between 32nd Pl S and Military Rd S. o The Ridge Townhomes – Earthwork, grading, wall construction, and storm pipe installation on site is ongoing. o Marquee on Meeker – Conflicts with existing utilities is impacting progress. o Kent Medical Office Building – It is anticipated that the water main connection work will take place at night during the week of July 9. o Sonic / Starbucks – Both Sonic and Starbucks are open for business. o Morrill Meadows Park / East Hill Park Renovation & YMCA – A Grade & Fill Permit has been issued so site work is proceeding this week. Land Survey and GIS • Land Survey staff continue support of the 2019 Overlay Monument Inventory and 4th and Willis topographic mapping. The City Surveyor has been researching special exceptions for the Lower Russell Road Levee project. • GIS staff have been working with IT on an External Server Project, storm system outfall updates, Census data reporting and updating infrastructure as-builts. Transportation • State Transportation Improvement Program (STIP) – Applications for inclusion in the STIP are being prepared for the S. 212th Street Preservation and Veteran’s Drive Extension projects. • Kent Bicycle Advisory Board – The Kent Bicycle Advisory Board met on June 28. Mel Roberts has stepped down as the KBAB chair but will remain on the Board. A new chair will be elected at the June meeting. KBAB also began discussing updating the Bicycle System Recommendations map for consideration in the Transportation Master Plan update. • Traffic Signals – Traffic signal cabinets at SR 99 / S. 260th St and 120th Ave SE and SE 204th St. were fully restored following auto accidents this past winter. • Meeker Street Underpass Lighting – The lights are now red, white and blue in observance of the Fourth of July. Page 9 of 9 Streets • The Street Maintenance crews will be grinding and paving the roadway at 21800 76th Ave S, just north of 228th. • The Concrete Crew will be pouring, stripping and forming for new sidewalks on 97th Pl, south of Canyon Drive and backfilling sidewalks on 6th Ave at Smith St. • The special emphasis employees will be removing litter with use of pick sticks around Frager Road south of Meeker Street and on 182nd Way behind Lake Meridian. • Vegetation crews are focusing on keeping up with all incoming service requests for maintenance at various locations citywide. Water • Water Distribution staff are beginning our third water main replacement project on 80th Pl S off of East Valley Highway. In addition, staff members are also performing chlorine injections and purities for the Saratoga subdivision and for Shops Inc. projects. Water Source and Supply crews are also working on pressure washing the 6 Million Gallon #1 Water Tank that is located just off 240th St on 98th Avenue South. Utilities • Storm Crews will be lowering a catch basin at 616 5th Ave. Storm Drainage crew members will also be focusing on removing material from the Springwood Dam, located at SE 268th St and 127th Ave SE. NPDES crews will be pumping on 120th Ave SE and SE 231st Place. Crews will also be replacing a check dam that is located at Brier Lane at 103rd Ave SE and 101st Pl SE. Lastly, crews will be digging a new pond at 116th Ave and 228th Pl. • Sewer Crews will be preparing for upcoming 2019 overlays on 228th St from 84th Ave to 88th Ave, and from Central to the Burlington Northern Railroad Track. # # # This page intentionally left blank. PUBLIC COMMENT This page intentionally left blank. PUBLIC HEARING This page intentionally left blank. Agenda Item: Consent Calendar 8A_ CONSENT CALENDAR 8. City Council Action: Councilmember ________ moves, Councilmember ________ seconds to approve Consent Calendar Items A through P. Discussion Action 8A. Approval of Minutes. Minutes of June 19, 2018, Workshop and Council Meeting – Approve This page intentionally left blank. Kent City Council Workshop June 19, 2018 Minutes Kent, Washington Pending Approval Page 1 of 3 Date: June 19, 2018 Time: 5 p.m. Place: Council Chambers East/West Attending: Mayor Dana Ralph Bill Boyce, Council President Brenda Fincher, Councilmember Satwinder Kaur, Councilmember Marli Larimer, Councilmember Dennis Higgins, Councilmember Toni Troutner, Councilmember Council President Boyce opened the meeting at 5:05 p.m. Agenda: Water System Update Presenters: Sean Bauer, Water System Manager Ron Halverson, SCADA Technician Spike English, Lead Worker Dustin Phelan, Facilities Technician Dave Brock, Public Works Operations Deputy Director, expressed his appreciation for the work Kaelyn Ieremia did in preparing tonight’s slide show presentation. An overview of the water system was presented that included the water system demand for 2017 and 2018, and the water supply systems and available water. Information was presented regarding the location of the Landsburg Mine and the Clark Springs water supply. An animation of the flow of water and water connections from Clark Springs to the various pump stations and wells throughout Kent was presented. Bauer provided details regarding water quality, Unregulated Contaminated Monitoring Rule, Polyfluoroalkyl Substances, LEAD, and the annual water quality report. Bauer indicated that two wells will be drilled for monitoring the water quality in recently-acquired land adjacent to the Clark Springs property in Ravensdale. Information was presented regarding wellhead protection and habitat conservation measures. Spike English provided information regarding water system maintenance, including water main cleaning, water valve exercising, water main bridge crossing inspections, Kent City Council Workshop June 19, 2018 Minutes Kent, Washington Pending Approval Page 2 of 3 water main air-vac maintenance, water system leak detection, hydrant operations and upgrades, large meters, customer class vs. use, and utility locates. Dustin Phelan provided information regarding water treatment equipment maintenance, water control valve maintenance, backup generator maintenance, and reservoir maintenance. Bauer reviewed water projects, including the water system plan renewal, seismic vulnerability, chlorination system automatic shut-offs, seismic shutoff valves, and Supervisory Control and Data Acquisition system vulnerability assessment. Ron Halvorson provided information regarding radio communication, programmable logic controllers, and the water data collection system. Bauer reviewed the water improvements associated with the South 228th UPRR grade separation, and the South 224th Street improvements phase 2. Bauer reviewed water main replacements, well rehabilitation, Clark Springs clear well pump, 640 Pressure Zone PVRs, Cambridge Tank, 125,000-gallon tank recoating, Kent Springs generator project, Pump Station No. 4 electrical improvements, Pump Station No. 3 electrical improvements, Clark and Kent Springs fire sprinkler systems, West Hill reservoir, and the Hwy 516 road widening at Jenkins Creek. File Local Patty Roseto, Finance Customer Service Manager, provided information regarding business licensing, including information regarding HB2005. The bill’s intent is to improve the business climate in the state by simplifying the administration of municipal general business licenses. The bill requires cities working through the Association of Washington Cities, to adopt a model ordinance on general business license requirements by July 1, 2018. Any city that requires a general business license of any person that engages in business activities within the city must partner with either the State by December 31, 2027 or be under contract with FileLocal by July 2020 to have such license issued and renewed. Next steps include participating in a conference call on June 21, 2018, to discuss the response of the business leaders, adopt a model ordinance on general business license requirements by July 1, 2018, and adopt the mandatory provisions of the model ordinance by January 1, 2019. The City of Kent is currently working with File Local. Roseto reviewed the details and advised of the other cities that are partnering with FileLocal. Next steps include gathering requirements, develop a system of record, get under contract with FileLocal, and implementation during the 3rd quarter of 2019. Kent City Council Workshop June 19, 2018 Minutes Kent, Washington Pending Approval Page 3 of 3 Barbara Lopez, Deputy Finance Director, provided information regarding the business and occupation tax and FileLocal. After evaluating FileLocal, the decision was made to develop a system of record in-house, including new taxpayer login and filing tools. Lopez demonstrated Kent’s B&O online portal from both the customer and City administrator perspectives, and advised that Phase 1 launched April 30, 2018, and Phase 2 planning is underway. The meeting concluded at 6:30 p.m. Kimberley A. Komoto City Clerk June 19, 2018 This page intentionally left blank. Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 1 of 11 Date: June 19, 2018 Time: 7 p.m. Place: Council Chambers East/West Attending: Mayor Dana Ralph Bill Boyce, Council President Brenda Fincher, Councilmember Dennis Higgins, Councilmember Satwinder Kaur, Councilmember Marli Larimer, Councilmember Toni Troutner, Councilmember Agenda: 1.Call to Order The meeting was called to order at 7:02 p.m. with Mayor Ralph presiding. 2.Roll Call Mayor Ralph – Present Council President Boyce - Present Brenda Fincher, Councilmember – Present Dennis Higgins, Councilmember – Present Satwinder Kaur, Councilmember – Present Marli Larimer, Councilmember – Present Les Thomas, Councilmember – Excused Absence Toni Troutner, Councilmember – Present 3.Changes to the Agenda Derek Matheson, Chief Administrative Officer, added item 8N, an excused absence for Councilmember Thomas. Matheson also advised that Resolution attached to item 8L, had an incorrect date, the version the Mayor signs will be corrected, and the date is not material to the Council’s decision. Council President Boyce moved to approve the agenda as amended, seconded by Councilmember Kaur. The motion passed unanimously with a vote of 6-0. 4.Public Communications A. Public Recognition i.Employee of the Month Mayor Ralph recognized Sarah Watson as the June employee of the month. Pat Fitzpatrick, City Attorney, provided information regarding Sara’s work as a prosecutor, including her work to develop the City’s DUI court. Sara expressed her appreciation of the honor and indicated that other staff members also deserve credit for the DUI program, including Tami Perdue. Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 2 of 11 Sara provided a brief overview of the program. This program is the first of its kind at the municipal court level. ii.Kent Chamber of Commerce Legislator/Government Employee of the Year Steve Haft presented Councilmember Brenda Fincher with the Legislator/Government Employee of the Year award. The award is presented to an elected official or government employee who through their actions and leadership supported the business community need for a reasonable cost of doing business. Haft expressed the Chamber’s appreciation of Councilmember Fincher’s open-door policy to discussing issues. Councilmember Fincher expressed her appreciation of the award. iii.Recognition of Neighborhood Councils Toni Azzola, Neighborhood Program Coordinator, provided information regarding the neighborhood program and recognized the Malik Ridge and North Scenic Hill neighborhood councils. For additional information regarding the neighborhood program should contact Toni Azzola at 253-856-5708. Mayor Ralph expressed her appreciation of the Public Works Department, including Kelly Peterson April Delchamps, Monica Whitman, Carla Maloney, Joe Araucto, Thomas Leyrer, and Chad Bieren, for their work applying for and receiving a $1.4 million-dollar preservation grant for the South 212th Street project from the East Valley Highway to 72nd Avenue South. B.Community Events Mayor Ralph provided information regarding the YMCA project construction that will be starting in this week, including details regarding the portions of the park that will remain open during construction and the dog park’s temporary location. The construction should take 15-16 months with a grand opening scheduled for late summer or fall of 2019. The ground breaking is July 21st at 10 a.m. Mayor Ralph gave a brief overview of the overall project from the December 2017 Council’s approval of the project agreement with the YMCA, to the programs that will be offered at the facility. Mayor Ralph provided details regarding the 29th annual vintage races at Pacific Raceways, from June 30th – July 2nd. This is a Kent Kiwanis fundraiser for Children’s Hospital. Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 3 of 11 Council President Boyce provided information regarding recent and upcoming events at the accesso ShoWare Center. Visit accessoShoWareCenter.com for additional details. Boyce invited the public to attend Juneteenth on June 23rd from 10 a.m. – dusk, at Morrill Meadows Park. Fincher advised that the Community Engagement Center is expanding the days they are open to include Wednesdays. The center is currently open Tuesdays and Thursdays. Services include food, shower and laundry facilities. Councilmember Kaur advised of the upcoming Green Kent event at Clark Lake Park from 9 a.m. – noon on June 23rd. C. Public Safety Report Chief Rafael Padilla presented the public safety report, including the Chief’s Award of Citizen’s Commendation to Shamika Smith for the great care she took to assist with a child’s safe return to her family. Shamika is a great example of civic responsibility. Chief Padilla recognized Karina Wheeler for organizing and delivering donated food for Kent Police Department personnel during National Police Week. Karina committed many hours of her time showing the Kent Police Department how they are appreciated throughout the community. Chief Padilla recognized corrections commander, Diane McCuistion and Sergeant Mike Armstrong for obtaining the National Jail Managers Certification. McCuistion and Armstrong are the 5th and 6th in the state to receive the certification. Chief Padilla conveyed the changes to the police department’s service delivery model in response to staffing challenges and limited resources. The department will strive to provide a high level of service with the available resources. Chief Padilla is instituting the verified response to alarm calls. The police will not respond until verification has been obtained. This does not apply to residential alarms, panic alarms, bank alarms, or business alarms that are high risk. The call management model will change to focusing more time on important calls and less emphasis on low priority calls. Wait times may increase for low priority calls. The police department will leverage technology and fully-utilize the e-reporting system for minor incidents. Chief Padilla advised that it is important to note that many jurisdictions implemented this service delivery model years ago. These changes will hopefully result in an overall quality in service, officers will spend more time interacting with the public, and will reduce stress on the officers. Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 4 of 11 Chief Padilla provided the plan for Fourth of July. The communications plan has started that includes where to go and how to be safe. Enforcement will begin prior to the Fourth. Additional staffing resources will be allocated on the Fourth. Chief Padilla is asking the community to be patient and encouraged everyone to attend the Splash event at Lake Meridian and encouraged residents to use the non-emergency line 253-852-2121. Chief Padilla advised of National Night Out on Tuesday, August 7th. This is a community and police awareness event and expects to have over 90 events throughout the City. This is a great opportunity to interact with the police department, fire department, elected officials, and city staff. Register at www.kentwa.gov/nno. Mayor Ralph advised that the police department is doing the best that they can with the limited resources and encouraged everyone to be patient during the Fourth of July. 5.Reports from Council and Staff Mayor Ralph recently attended the Centers for Advanced Manufacturing of Puget Sound conference. This organization helps support advanced manufacturers in growing their business and connecting their business with other businesses. The first coffee and conversation with the Mayor was held on the West Hill. Mayor Ralph was encouraged by the turnout and the questions that were asked. The next event is scheduled for August 29th in the Panther Lake area. Details will be posted on the City’s Facebook page. Mayor Ralph, along with Merina Hanson, the City’s Human Services Director, attended the South County Mayor’s forum on affordable housing, that discussed a permanent coalition to deal with affordable housing and homelessness. Mayor Ralph attended the Transportation Policy Board that discussed accessibility applications. The University of Washington is developing apps that will be customizable to your physical ability. Mayor Ralph is encouraged at the amount of mobility this app will provide for residents to get around. Council President Boyce Boyce provided a brief recap of tonight’s City Council workshop regarding a water system update and FileLocal. Boyce provided information regarding two action items from today’s Operations Committee. Boyce serves on the Sound Cities Association’s Public Issues Committee. During the last meeting, the Medic One EMC Levy for 2025 was discussed. Boyce serves on the Best Starts for Kids. Zero detention for youths was discussed. Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 5 of 11 Councilmember Kaur Councilmember Kaur serves on the Sound Cities Association Puget Sound Clean Air Agency Advisory Council. No report. Councilmember Kaur serves on the Sound Cities Association Growth Management Planning Council. No report. Councilmember Higgins Councilmember Higgins is the Chair of the Public Works Committee. The minutes are available online. Councilmember Higgins serves on the King County Regional Transit Committee. The upcoming meeting will discuss Metro Connects, including the improvements in Kent related to two new projects. The committee heard a report on Access Paratransit. Councilmember Troutner Councilmember Troutner serves on the Sound Cities Association Regional Law, Safety and Justice Committee. No report. Troutner is the chair of the Public Safety Committee and advised that during Chief Padilla’s public safety report tonight, all agenda items from the last meeting were covered. Troutner invited the public to attend the next Coffee with the Chief to be held on June 21st at 9 a.m. at Kona Kai. Troutner serves on the Puget Sound Regional Fire Authority Governance Board. The Board recently voted unanimously to enter into a contract with Maple Valley Fire to provide emergency services with King County Fire District No. 43. Councilmember Fincher Councilmember Fincher serves on the Arts Commission. An artist has been chosen to design the art at Morrill Meadows. Fincher invited the public to attend the art display in Centennial Building that will be displayed through August 22nd. Fincher is the chair of the Parks and Human Services Committee. No report. Fincher serves on the Sound Cities Association Mental Health and Drug Dependency Oversight Committee. During the special meeting, the committee reviewed the draft report and 2019-2020 budget adjustments. An extra 3.3% in funding was received from King County and the committee discussed options for spending. Fincher serves on the Sound Cities Association King Conservation District Advisory Committee. No report. Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 6 of 11 Fincher advised of the upcoming Green Kent events that will be held at Clark Lake Park. 6.Public Hearing A. 2019-2024 Six-Year Transportation Improvement Program – Resolution – Adopt Mayor Ralph provided details regarding format of the public hearing. Mayor Ralph opened the public hearing. April Delchamps, Senior Transportation Planner, gave the staff presentation regarding the 2019 – 2024 Six-Year Transportation Improvement Program. The plan is a short-range planning document that is updated annually, and declares the list of projects, plans and programs by year. Delchamps reviewed the four projects that have been completed and will be removed from the list of projects in the plan, the revised project descriptions, and added projects. Delchamps advised that the plan needs to be transmitted to the state by August 1st. There were no speakers signed up to speak during the hearing. Mayor Ralph closed the public hearing. Councilmember Higgins moved to adopt Resolution No. 1967, adopting the 2019-2024 Six-Year Transportation Improvement Program, seconded by Councilmember Fincher. The motion passed unanimously with a vote of 6-0. 7.Public Comment T.J. Petersen, a Kent resident, spoke regarding the upcoming human services public hearing regarding the use of CDBG funding. Josephine Eshin, a registered nurse at Harborview Medical Center, asked if the Council is considering any health projects regarding Kent residents. Mayor Ralph advised of the regional committees that councilmembers serve on that discuss regional health issues, and Fincher advised of the use of CDBG funds supporting health-related issues for Kent residents. 8.Consent Calendar Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 7 of 11 Council President Boyce moved to approve the Consent Calendar Items A through N, seconded by Councilmember Troutner. The motion passed unanimously with a 6-0 vote. A. Minutes of June 5, 2018, Workshop and Council Meeting, and June 12, 2018, Special Meeting – Approve Minutes of the June 5, 2018 Workshop and Council meeting and June 12, 2018, Special meeting were approved. B. Approval of Bills Bills received through May 15, 2018 and paid on May 15, 2018 were approved. The Operations Committee audited the payment of bills on June 5, 2018. Approval of checks issued for vouchers: Date Check Numbers Amount 05/15/18 Wire Transfers 7509 - 7524 $2,183,997.09 05/15/18 Regular Checks 724157 - 724568 $2,797,917.23 05/15/18 Payment Plus 100873 - 100884 $89,231.76 Void Checks ($85,735.00) 05/15/18 Use Tax Payable $3,895.64 $4,989,306.72 Checks issued for payroll for May 1, 2018 through May 15, 2018 and paid on May 18, 2018: Date Check Numbers Amount 5/18/2018 Checks $0.00 Voids and Reissues 5/18/2018 Advices 408534 - 409469 $1,866,097.47 $1,866,097.47 C. Equipment Purchase for Riverbend Golf Course – Authorize The Mayor was authorized to authorize the Parks Director to purchase maintenance equipment through a lease agreement made under the cooperative purchasing agreement the National Intergovernmental Purchasing Alliance has with The Toro Company, in an amount not to exceed $705,000, and authorize the Mayor to sign all necessary documents, subject to final terms and conditions acceptable to the City Attorney and Parks Director. D. Department of Ecology Waste 2 Resource Grant – Authorize The Mayor was authorized to sign a Waste 2 Resources Local Solid Waste Financial Assistance Agreement with the Department of Ecology in the amount of $45,819.00, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. E. Consultant Service Agreement – Visual Pavement Rating Services, LLC –Authorize Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 8 of 11 The Mayor was authorized to sign a Consultant Services Agreement with Visual Pavement Rating Services, LLC., in an amount not to exceed $64,710, for performing a visual pavement condition survey for all City streets, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. F. Market Place at Lake Meridian Bill of Sale – Accept Council accepted the Bill of Sale from Lakha Kent Properties, LLC, as detailed in the summary. G. 132nd Avenue S.E. Pedestrian Improvements – Accept as Complete The Mayor was authorized accept the 132nd Avenue S.E. Pedestrian Improvement Project as complete and release retainage to R.W. Scott Construction Co., upon receipt of standard releases from the state and the release of any liens. H. 2017 Asphalt Overlays – Accept as Complete The Mayor was authorized to accept the 2017 Asphalt Overlays Project as complete and release retainage to Lakeridge Paving Company LLC, upon receipt of standard releases from the state and the release of any liens. I. Ordinance Amending the Comprehensive Plan Land Use Plan Map Designations – Adopt Ordinance No. 4279 was adopted, which amends the Comprehensive Plan Land Use map designations relating to annual docket applications CPA-2017-4, CPA-2017-5, and CPA2017-6, as recommended by the Economic and Community Development Committee. J. Ordinance Amending KCC 7.01 – Utility Service Billing – Adopt Ordinance No. 4280 was adopted, repealing and replacing Chapter 7.01 of the Kent City Code to update the Lifeline program application requirements, add an appeal process for perceived billing errors, and to remove the two-tiered shut-off fee. K. Ordinance Amending KCC 3.18 – Solid Waste Definitions – Adopt Ordinance No. 4281 was adopted, amending Section 3.18.010 of the Kent City Code, to add definitions of “solid waste” and “solid waste collection services.” L. Resolution Recognizing the North Scenic Neighborhood Council – Adopt Resolution No. 1967 was adopted, that recognizes the North Scenic Hill Neighborhood Council, supports its community building efforts, and confers all opportunities offered by the City’s Neighborhood Program. M. Resolution Recognizing the Malik Ridge Neighborhood Council – Adopt Resolution No. 1968 was adopted, that recognizes the Malik Ridge Neighborhood Council, supports its community building efforts, and confers all opportunities offered by the City’s Neighborhood Program. N. Excused Absence for Councilmember Thomas - Approve Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 9 of 11 The excused absence for Councilmember Thomas was approved. 9.Other Business A. Puget Sound Gateway Program Local Funding and Phasing Memorandum of Understanding - Authorize Kelly Peterson, Transportation Manager, provided information regarding the Puget Sound Gateway Program Local Funding and Phasing Memorandum of Understanding. Peterson provided a brief overview of the Connecting Washington Transportation Package that included the Puget Sound Gateway Program. Peterson review the Veteran’s Drive/228th Street Corridor portion of the project. Veteran’s Drive will not be tolled. Peterson provided details regarding the Puget Sound Gateway Program funding model that includes the $130 million dollars in local contributions. Peterson reviewed provisions of the Memorandum of Understanding. Councilmembers provided comments regarding their concerns over the local contributions. Councilmember Higgins moved to authorize the Mayor to sign the Puget Sound Gateway Program Local Funding and Phasing Memorandum of Understanding, subject to final terms and conditions acceptable to the City Attorney and Public Works Director, seconded by Councilmember Troutner. The motion passed unanimously with a vote of 6-0. B. Vision, Mission, Goals and Values Update and Strategic Framework – Resolution – Adopt Derek Matheson, Chief Administrative Officer, provided a history of the adoption of the City’s Strategic Plan in 2012, that included a vision statement and 5 goal statements. The Council added a mission statement and refined the goals in 2016. Prior to 2016, there were values in the City policy and the Council added those into the official Strategic Framework in 2016. The Mayor and City Council directed a review of the vision, mission, values and goals in 2018. A team was put together to work on the project that included the Mayor, Chief Administrative Officer, Council President, Human Resources Director, the Performance Analyst, and the Communications Manager. The team generally kept the current content but made some changes to restructure it and make it more user friendly. Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 10 of 11 The team rewrote the vision statement, simplified the mission statement, and rewrote the goals. The team reviewed and largely kept the values in their current form. The revisions were presented to Executive Leadership Team for input. The team met and modified accordingly. Matheson indicated that this is a strategic framework rather than a strategic plan, because at this point we’re not planning to create a citywide strategic plan with objectives, strategies and tasks. A strategic plan may become unwieldy and it may be out of date by the time it is completed. The strategic framework will inform the other City plans that will include objectives, strategies and tasks that tie back to the framework. Current work is being done on performance measures that will tie back to the strategic framework and the City plans. The performance measures will be presented during the July 3, 2018, Council workshop. Councilmember moved to adopt Resolution No. 1970, amending the City’s vision, mission, goals and values, and adopting a strategic framework, seconded by Councilmember Kaur. The motion passed unanimously with a vote of 6-0. 10.Bids None. 11.Executive Session and Action after Executive Session None. Mayor Ralph congratulated all the recent graduates. Councilmember Higgins took a personal point of privilege and expressed how outraged his is by the human rights violations being committed by our country. Seeking asylum is not an illegal act and is protected by human rights conventions. He will work with and support efforts to end this cruelty. 12. Adjournment Mayor Ralph adjourned the meeting at 8:36m. Kimberley A. Komoto City Clerk Kent City Council Regular Meeting June 19, 2018 Minutes Kent, Washington Pending Approval Page 11 of 11 June 19, 2018 This page intentionally left blank. Agenda Item: Consent Calendar – 8B_ 8B. Approval of Bills: Approval of payment of the bills received through May 31, 2018 and paid on May 31, 2018. The Operations Committee audited the payment of bills on June 19, 2018. Approval of checks issued for vouchers: Date Check Numbers Amount 05/31/18 Wire Transfers 7525 - 7539 $1,865,324.80 05/31/18 Regular Checks 724569 - 725205 $9,704,383.49 05/31/18 Payment Plus 1000897 - 100936 $160,494.91 Void Checks ($33,008.55) 05/31/18 Use Tax Payable $2,993.27 $11,700,187.92 Approval of checks issued for payroll for May 16, 2018 through May 31, 2018 and paid on June 5, 2018: Date Check Numbers Amount 6/5/2018 Checks 0 Voids and Reissues 6/5/2018 Advices 409470 - 410387 $1,777,334.71 $1,777,334.71 This page intentionally left blank. Agenda Item: Consent Calendar – 8C_ TO: City Council DATE: July 3, 2018 SUBJECT: Excused Absence for Councilmember Higgins - Approve SUMMARY: Councilmember Higgins is unable to attend today’s meeting and has requested an excused absence. MOTION: Approve an excused absence for Councilmember Higgins. This page intentionally left blank. Agenda Item: Consent Calendar – 8D_ TO: City Council DATE: July 3, 2018 SUBJECT: Excused Absence for Councilmember Thomas - Approve SUMMARY: Councilmember Thomas is unable to attend today’s meeting and has requested an excused absence. MOTION: Approve an excused absence for Councilmember Thomas. This page intentionally left blank. Agenda Item: Consent Calendar – 8E_ TO: City Council DATE: July 3, 2018 SUBJECT: Backup and Recovery System Contract for Technical System Upgrade – Authorize SUMMARY: The City wishes to enter into an agreement with SHI International Corp., which allows the City to participate in a national purchasing cooperative contract that SHI International Corporation has with the National Intergovernmental Purchasing Alliance Company (“National IPA”). National IPA provides states, local governments, public educational entities and other agencies with purchasing power that allows them to leverage their spending through a single solicitation that obtains best value pricing and superior contract terms than the agencies could likely do on their own. Purchasing goods and services through the National IPA purchasing cooperative satisfies the competitive bid requirements established by Council under KCC 3.70.110(F). One contract that SHI International Corp. has entered into is a contract with the City of Mesa, AZ. That contract is currently in effect through February 28, 2023. The City’s current backup and disaster recovery system is at the end of its hardware lifecycle and is quickly approaching maximum storage capacity. It is critical for this system to be replaced by an upgraded solution of the same manufacturer to maintain technical consistency and business continuity. SHI International Corp. is a value-added reseller of information technology solutions including Commvault systems. Commvault provides industry leading solutions that will enable the City of Kent to protect and use its data. Commvault solutions provide built-in business continuity and disaster recovery for information governance and compliance ensuring transparency. This procurement will include a fully configured hardware appliance with proprietary and dedicated software. If Council authorizes and approves the City’s participation in this cooperative purchasing agreement with SHI International Corp., that action would authorize the City’s immediate purchase of a new backup and disaster recovery system in the total amount of $223,329.44, plus authorize future purchases that may be required through the term of the master agreement, but only if those purchases can be paid for with existing budgeted funds. The terms and conditions of the participating addendum and master agreement will apply to those purchases. MOTION: Authorize the Mayor to sign a participating addendum that allows the City to purchase technology software and equipment through a cooperative purchasing agreement the City of Mesa, Arizona entered into with SHI International Corp., if those purchases are within the City’s established budgets and made during the term of the master agreement, which is current through February 28, 2023, subject to final terms and conditions acceptable to the Information Technology Director and City Attorney. EXHIBITS: •Participating Addendum to National IPA Contract #2018011-02 with SHI International Corp. •Master Agreement •Insurance Requirements •Product Matrix •Quote RECOMMENDED BY: Operations Committee YEA: Boyce, Higgins, Thomas NAY: BUDGET IMPACTS: 1.Expenditures Item Price Commvault Hyperscale Appliance $203,026.76 Tax $20,302.68 Total $223,329.44 STRATEGIC PLAN GOAL(S): ☒ Innovative Government – Delivering outstanding customer service, developing leaders, and fostering innovation. ☒ Evolving Infrastructure – Connecting people and places through strategic investments in physical and technological infrastructure. PARTICIPATING ADDENDUM - 1 OF 5 (City of Kent and SHI International Corp – June 4, 2018) PARTICIPATING ADDENDUM TO NATIONAL IPA CONTRACT #2018011-02 WITH SHI INTERNATIONAL CORP. This Participating Addendum (“Addendum”) pertains to National Intergovernmental Purchasing Alliance Company (“National IPA”) Contract #2018011-02 (“Master Agreement”), entered into between the City of Mesa, Arizona, as lead agency, and SHI International Corp., a Delaware corporation (“Contractor”). The parties to this Addendum hereby create a separate contract between the Contractor and the City of Kent, a Washington municipal corporation (“City”), acting through its Information Technology Department. I. RECITALS 1.1 The Contractor sells and markets a wide variety of information technology solution products, including hardware, software, and support solutions. The City has a current interest in acquiring _________________________________ through Contractor , but desires to establish a contractual relationship that will allow the City to make additional purchases in the future as needs arise. 1.2 The City of Mesa, Arizona, pursuant to its agency’s competitive bidding laws, entered into a contract with Contractor as the lead agency for a cooperative purchasing procurement for National IPA under Contract #2018011-02. Section 3.70.110 of the Kent City Code authorizes the City of Kent to purchase from a contractor who was awarded a contract using another public agency’s established procurement process for substantially the same purchase, subject to any contract that may be required between that successful contractor and the City of Kent. 1.3 For those agencies who choose to participate in National IPA’s cooperative purchasing contracts, the terms and conditions of the lead agency’s contract applies, but any usage by other agencies must be in accordance with the statutes, codes, and ordinances of their respective agencies. The lead agency’s contract includes provisions specific to Arizona state law that do not apply to Kent, which need to be excluded from the contract as it applies to Kent. II. ADDENDUM In consideration of the mutual intent, desire, and promises of the parties and other good and valuable consideration, the City and the Contractor agree as follows: 2.1 The recitals set forth above are incorporated by reference as a material part of this Addendum. 2.2 Except to the extent amended by this Addendum, the City and Contractor adopt the Master Agreement, which is attached and incorporated as Exhibit A. The City, as a local public agency, will receive all the benefits of the Master Agreement, and Contractor will be bound to the City under this Addendum to the same extent Contractor is bound to the City of Mesa, Arizona under the Master Agreement. PARTICIPATING ADDENDUM - 2 OF 5 (City of Kent and SHI International Corp – June 4, 2018) 2.3. Master Agreement Controls Except as Amended by this Addendum. Except as amended by this Addendum, this contractual relationship between the City and Contractor will be governed in all respects by the terms and conditions of the Master Agreement. However, the following provisions of the Master Agreement are specifically excluded from application, or they are amended as indicated below, as to the contractual relationship between the City and Contractor as they are specific to the laws of the State of Arizona and not the State of Washington: A. Exhibit C, Section 9.c., “Federal and State Immigration Laws”: Subsections (i) through (v) are stricken, and only the introductory section remains. B. Exhibit C, Section 9.e., “State Sponsors of Terrorism Prohibition”: This subsection is stricken in its entirety. C. Exhibit C, Section 12, “Public Records”: This entire section is deleted and replaced with the following: 12. PUBLIC RECORDS. As a public agency, records and information provided to or otherwise used by the City may be subject to a request submitted under the Washington State Public Records Act. In such an event, Contractor agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act, Ch. 42.56 RCW. If a request is received for records Contractor has identified as confidential, proprietary, or protected trade secret material, the City will use its best efforts to provide Grantee with notice of the request in accordance with RCW 42.56.540 and a reasonable time within which the Contractor may seek an injunction to prohibit the City’s disclosure of the requested record. The City is not required to assert on Contractor’s behalf any exemption based on trade secret, proprietary, or confidential information, provided, however, the City may assert such exemption if the City itself believes in good faith that an exemption applies to the requested records. Contractor agrees to defend, indemnify, and hold the City, its officers, officials, employees, agents, and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the assertion of an exemption to disclosure under the Public Records Act based upon records claimed or identified by Contractor as confidential, proprietary, or protected trade secret material. The provisions of this section shall survive the expiration or termination of this Franchise Agreement. PARTICIPATING ADDENDUM - 3 OF 5 (City of Kent and SHI International Corp – June 4, 2018) D. Exhibit C, Section 20, “Termination for Conflict of Interest (A.R.S. § 38-511)”: This entire section is deleted in its entirety. E. Exhibit C, Section 30, “Prohibited Acts”: This entire section is deleted in its entirety. F. Exhibit C, Section 41, “Governing Law, Forum”: This entire section is deleted in its entirety. G. Exhibit C, Section 46, “A.R.S. Sections 1-501 and 1-502:” This entire section is deleted in its entirety. 2.4. Master Agreement References to “City”. Whenever any direct or indirect reference is made to “City of Mesa” or “City” in the Master Agreement, that reference will apply equally to the City of Kent as if the City of Kent had originally negotiated the Master Agreement with Contractor, excepting that any fees paid to City of Mesa or National IPA for use of the program shall not be paid to the City. 2.5 Term. This Addendum shall terminate or expire upon the earlier of: (a) expiration or termination of the Master Agreement; or (b) termination of this Addendum in accordance with its terms or the terms of the Master Agreement. The Master Agreement is currently effective through February 28, 2023. If the Master Agreement is renewed or extended, this Addendum shall automatically renew or extend for a term consistent with the term of the Master Agreement. 2.6. Indemnification. To the fullest extent permitted by law, Contractor, its successors, assigns and guarantors, shall pay, defend, indemnify and hold harmless the City, its agents, representatives, officers, directors, officials and employees from and against all third party allegations, demands, proceedings, suits, actions, claims, including claims of US patent or copyright infringement by Contractor, damages, losses, expenses, including but not limited to, attorney fees, court costs, and the cost of appellate proceedings, and all claim adjusting and handling expense, related to, arising from or out of or resulting from any negligent actions, acts, errors, mistakes or omissions caused in whole or part by Contractor relating to work, services and/or products provided in the performance of this agreement, including but not limited to, any subcontractor or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable and any injury or damages claimed by any of Contractor’s and subcontractors’ employees. In all instances requiring indemnification, Contractor shall receive prompt notification and receive reasonable assistance from the City at Contractor’s expense for the defense of any such actions. 2.7. Resolution of Disputes and Governing Law. This Addendum and the Master Agreement as applied between the parties will be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties’ performance of this Addendum and the Master Agreement, the exclusive means of resolving that dispute, difference or claim, will only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing PARTICIPATING ADDENDUM - 4 OF 5 (City of Kent and SHI International Corp – June 4, 2018) to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Addendum, each party will pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph will be construed to limit the City's right to indemnification under Section 2.5 of this Addendum. 2.8. Written Notice. All communications regarding transactions under this Addendum and the Master Agreement will be sent to the parties at the following addresses, unless notified to the contrary. Any written notice will become effective three (3) business days after the date of mailing by registered or certified mail, or one (1) business day after being deposited with a nationally recognized overnight courier, and will be deemed sufficiently given if sent to the addressee at the address stated in this Addendum or such other address as may be hereafter specified in writing. City: Contractor: Attn: Brian Rambonga, PMBA Attn: City of Kent SHI International Corp. Dept. of Information Technology 220 Fourth Avenue South Kent, WA 98032 2.9. Counterparts and Signatures by Fax or Email. This Addendum may be executed in any number of counterparts, each of which will constitute an original, and all of which will together constitute this one Addendum. This Addendum may be signed through application of an authorized officer’s signature, including an electronic signature, which signature shall be deemed binding for all purposes without delivery of an original signature being thereafter required. 2.10 Requirements Contract. This Addendum does not guarantee the City’s utilization of the Master Agreement, or the purchase of any hardware, software, or service through the Contractor until such time as a purchase order is issued to Contractor. This Addendum does not create an exclusive bargaining relationship between the parties and the City may award contracts to other vendors for similar products or services. Actual utilization will be based on availability, proximity of Contractor’s facilities, frequency of deliveries, or any other factor deemed important to the City. / / / / / / / / / / PARTICIPATING ADDENDUM - 5 OF 5 (City of Kent and SHI International Corp – June 4, 2018) 2.11 Authority. The parties whose names appear below swear under penalty of perjury that they are authorized to enter into this Addendum, which is binding on the parties of this Addendum. IN WITNESS, the parties below have executed this Addendum, which will become effective on the last date written below. CONTRACTOR: SHI INTERNATIONAL CORP. By: (signature) Print Name: Its: (title) DATE: CITY: CITY OF KENT By: (signature) Print Name: Dana Ralph Its Mayor (title) DATE: APPROVED AS TO FORM: Kent Law Department P:\Civil\Files\Open Files\0073-IT-General-2018\SHI_Corp_International-CommVault\SHI-NationalIPA-ParticipatingAddendum.doc This page intentionally left blank. City of Mesa, AZ Contract # 2018011-02 for Information Technology Solutions and Services with SHI International Corp. Effective: March 1, 2018 The following documents comprise the executed contract between the City of Meza, AZ and SHI International Corp, effective March 1, 2018: I. Executed Contract II. Mayor and Council Approval III. Supplier Response IV. Original RFP ~ mesa -az AGREEMENT PURSUANT TO SOLICITATION CITY OF MESA AGREEMENT NUMBER 2018011 INFORMATION TECHNOLOGY SOLUTIONS & SERVICES CITY OF MESA, Arizona ("City") Department Name Mailing Address Delivery Address Attention E-Mail Phone Fax City of Mesa -Purchasing Division P.O. Box 1466 Mesa, AZ 85211-1466 20 East Main St, Suite 400 Mesa, AZ 85201 Sharon Brause, CPPO, CPPB, CPCP Senior Procurement Officer Sharon .Brause@MesaAZ.gov (480) 644-2815 (480) 644-2655 AND SHI INTERNATIONAL CORP., ("Contractor") Mailing Address 290 Davidson Ave Remit Address Attention E-Mail Phone Fax Website Somerset, NJ 08873 PO Box 95212 1 Dallas, TX 75395-2121 Meghan Flisakowski, Public Program Manager Meghan .Fl isakowski@shi .com 512-517-4088 732-652-6599 www.pub licsector.shidirect.com / Page 1 of 33 CITY OF MESA AGREEMENT PURSUANT TO SOLICITATION This Agreement pursuant to solicitation ("Agreement") is entered into this 27th day of February, 2018, by and between the City of Mesa, Arizona, an Arizona municipal corporation ("City"), and SHI INTERNATIONAL CORP, a New Jersey corporation ("Contractor"). The City and Contractor are each a "Party" to the Agreement or together are "Parties" to the Agreement. RECITALS A. The City issued solicitation number 2018011 ("Solicitation") for INFORMATION TECHNOLOGY SOLUTIONS & SERVICES, to which Contractor provided a response ("Response"); and B. The City Selected Contractor's Response as being in the best interest of the City and wishes to engage Contractor in providing the Services/Products described in the Solicitation and Response. C. "Services" means the resale services provided by Contractor under this Agreement; i.e. sourcing and fulfilling the Product and/or providing deliverables identified in an Order. D. "Products" means collectively third-party software, computer peripherals, computer hardware, and associated IT services provided by third parties or Contractor, as the case may be. E. "Order'' means the form of purchase order or other document used for the purpose of ordering Product and/or deliverables pursuant to this Agreement. Order shall also include a phone order or on-line order placed by the City employee to Contractor utilizing the City's corporate procurement card or the City's written or electronic form of purchase requisition. In consideration of the reciprocal promises contained in the Agreement, and for other valuable and good consideration, which the Parties acknowledge the receipt and sufficiency of, the Parties agree to the following Terms & Conditions. TERMS & CONDITIONS 1. Term. This Agreement is for a term beginning on March 1, 2018 and ending on February 28, 2023. The use of the word "Term" in the Agreement includes the aforementioned period as well as any applicable extensions or renewals in accordance with this Section 1. 1.1 Renewals. On the mutual written agreement of the Parties, the Term may be renewed up to a maximum of two (2), one (1) year periods . Any renewal(s) will be a continuation of the same terms and conditions as in effect immediately prior to the expiration of the then- current term. 1.2 Extension for Procurement Processes. Upon the expiration of the Term of this Agreement, including any renewals permitted herein, at the City's sole discretion this Agreement may be extended on a month-to-month basis for a maximum of six (6) months to allow for the City's procurement processes in the selection of a Contractor to provide the Services/Products provided under this Agreement. The City will notify the Contractor in writing of its intent to extend the Agreement at least thirty (30) calendar days prior to the expiration of the Term . Any extension under this Subsection 1.2 will be a continuation of the same terms and conditions as in effect immediately prior to the expiration of the then- current term. 1.3 Delivery. Delivery shall be made to the location(s) contained in the Scope of Work within thirty (30) days after receipt of an Order. Contractor agrees to deliver all Products to the desktop of the ordering customer be delivered F.O.B. destination, freight pre-paid and allowed to various locations throughout the City. The City of Mesa shall be responsible for extra incurred fees for expedited shipping or other special delivery requirements. In Page 2 of 33 many cases within the City, the Contractor may be asked to deliver all goods to the front counter within a given department; this is a City requirement and other participating agencies who utilize this Agreement as a cooperative contract (see Exhibit C, Mesa Standard Terms & Conditions) may have other delivery requirements. 2. Scope of Work. The Contractor will provide the necessary staff, Services and associated resources to provide the City with the Services, Products, and obligations attached to this Agreement as Exhibit A ("Scope of Work") Contractor will be responsible for all costs and expenses incurred by Contractor that are incident to the performance of the Scope of Work unless otherwise stated in Exhibit A. Contractor will supply all equipment and instrumentalities necessary to perform the Scope of Work. If set forth in Exhibit A, the City will provide Contractor's personnel with adequate workspace and such other related facilities as may be required by Contractor to carry out the Scope of Work. 3. 4. The Agreement is based on the Solicitation and Response which are hereby incorporated by reference into the Agreement as if written out and included herein. In addition to the requirements specifically set forth in the Scope of Work, the Parties acknowledge and agree that the Contractor shall perform in accordance with all terms, conditions, specifications and other requirements set forth within the Solicitation and Response unless modified herein. Orders. Orders must be placed with the Contractor by either a: (i) Purchase Order when for a one- time purchase; (ii) notice to proceed, or (iii) Delivery Order off a Master Agreement for a requirements contract where multiple as-needed orders will be placed with the Contractor. The City may use the Internet to communicate with Contractor and to place Orders as permitted under this Agreement. The terms and conditions on any order form, quote, or similar document provided by Contractor to the City will not take precedence over the language set forth in this Agreement or any of the documents outlined in Section 4 below. Document Order of Precedence. In the event of any inconsistency between the terms of the body of the Agreement, Exhibits, Solicitation, and Response, the language of the documents will control in the following order. a. Amendments to the Agreement b. Agreement c. Exhibits 1. Mesa Standard Terms & Conditions (Exhibit C) 2. Pricing (Exhibit B) 3. Scope of Work (Exhibit A) 4 . Other Exhibits not listed above d. Solicitation including any addenda e. Contractor's Response 5. Payment. Subject to the provisions of the Agreement, the City will pay Contractor the sum(s) described in Exhibit B ("Pricing") in consideration of Contractor's performance of the Scope of Work during the Term. 6. Pricing. Contractor's pricing shall be in the format of a minimum percentage discount off a verifiable price index. Contractor may submit discounts for various manufacturers. At the time of purchase, Contractor may offer deeper discounts beyond the discounted price list, based on volume or other factors, as applicable. Minimum discounts will remain firm during the entirety of the Term of the Agreement, unless the Contractor requests to increase its discount percentage, and will include all charges that may be incurred in fulfilling requirement(s). In addition to decreasing prices for the balance of the Term due to a change in market conditions, a Contractor may conduct sales promotions involving price reductions for a specified lesser period . In the event a Product is discontinued, Contractor will provide a Product of the same or greater functionality, utilizing the discount structure. Page 3 of 33 It is the Contractor's responsibility to provide the City with an up-to-date price list for the duration of the Agreement. 6.1 Prices. All pricing discounts shall be firm for the Term and all extensions or renewals of the Term except where otherwise provided in this Agreement, and will include all costs of the Contractor providing the Products/Service including transportation and insurance costs. No fuel surcharges will be accepted unless allowed in this Agreement. The City shall not be invoiced at prices higher than those stated in the Agreement. 6 .2 6 .3 6.4 The Contractor further agrees that any reductions in the price of the Products or Services covered by this Agreement will apply to the undelivered balance . The Contractor shall promptly notify the City of such price reductions. No price modifications will be accepted without proper request by the Contractor and response by the City's Purchasing Division . Price Adjustment. Any requests for reasonable price adjustments must be submitted in accordance with this section . Requests for adjustment in cost of labor and/or Products must be supported by appropriate documentation. There is no guarantee the City will accept a price adjustment therefore Contractor should be prepared for the Pricing to be firm over the Term of the Agreement. The City is only willing to entertain price adjustments based on an increase to Contractor's actual expenses or other reasonable adjustment in providing the Services/Products under the Agreement. If the City agrees to the adjusted price terms, the City shall issue written approval of the change. During the sixty (60) day period prior to expiration date of the then-current term of the Agreement, the Contractor may submit a written request to the City to allow an increase to the prices in an amount not to exceed the twelve (12) month change in the Consumer Price Index for All Urban Consumers (CPI-U), US City Average, All Items, Not Seasonally Adjusted as published by the U.S . Department of Labor, Bureau of Labor Statistics (http ://www .bls .gov/cpi/home .htm ). The City shall review the request for adjustment and respond in writing ; such response and approval shall not be unreasonably withheld. Renewal and Extension Pricing. Any extension of the Agreement will be at the same pricing as the initial term. If the Agreement is renewed in accordance with Section 1, pricing may be adjusted for amounts other than inflation that represent actual costs to the Contractor based on the mutual agreement of the Parties. Contractor may submit a request for a price adjustment along with appropriate supporting documentation demonstrating the cost to the Contractor. Renewal prices shall be firm for the term of the renewal period and may be adjusted thereafter as outlined in Subsection 6.2 . There is no guarantee the City will accept a price adjustment. Invoices. Payment will be made to Contractor following the City's receipt of a properly completed invoice. Any issues regarding billing or invoicing must be directed to the City DepartmenUDivision requesting the Service or Product from the Contractor. A properly comp leted in voice should contain, at a minimum , all of the following : a. Contractor name, address, and contact information; b. City billing information; c. City contract number as listed on the first page of the Agreement; d. Invoice number and date; e. Payment terms; f . Date of Service or delivery of Product; g. Description of Products or Services provided ; h. If Products provided, the quantity delivered and pricing of each unit; Page 4 of 33 i. Applicable taxes; and j. Total amount due . 6.5 Payment of Funds. Contractor acknowledges the City may, at its option and where available use a Procurement Cardle-Payables to make payment for orders under the Agreement; otherwise, payment will be through a traditional method of a check or Electronic Funds Transfer (EFT) as available. 6.6 Disallowed Costs, Overpayment. If at any time the City determines that a cost for which payment was made to Contractor is a disallowed cost, such as an overpayment or a charge for Products/Service not in accordance with the Agreement, the City will notify Contractor in writing of the disallowance; such notice will state the means of correction which may be, but is not limited to, adjustment of any future claim/invoice submitted by Contractor in the amount of the disallowance, or to require repayment of the disallowed amount by Contractor. Contractor will be provided with the opportunity to respond to the notice. 7. Insurance. 7 .1 Contractor must obtain and maintain at its expense throughout the Term of the Agreement, at a minimum, the types and amounts of insurance set forth in this Section 7 from insurance companies authorized to do business in the State of Arizona; the insurance must cover the Products/Service to be provided by Contractor under the Agreement. For any insurance required under the Agreement, Contractor will name the City of Mesa, its agents, representatives, officials, volunteers, officers, elected officials, and employees as additional insured, as evidenced by providing either an additional insured endorsement or proper insurance policy excerpts. Nothing in this Section 7 limits Contractor's responsibility to the City. The insurance requirements herein are minimum requirements for the Agreement and in no way limit any indemnity promise(s) contained in the Agreement. 7.2 The City does not warrant the minimum limits contained herein are sufficient to protect Contractor and subcontractor(s) from liabilities that might arise out of performance under the Agreement by Contractor, its agents, representatives, employees, or subcontractor(s). Contractor is encouraged to purchase additional insurance as Contractor determines may be necessary. 7.3 Each insurance policy required under the Agreement must be in effect at or prior to the execution of the Agreement and remain in effect for the Term of the Agreement. 7.4 Prior to the execution of the Agreement, Contractor will provide the City with a Certificate of Insurance (using an appropriate "ACORD" or equivalent certificate) signed by the issuer with applicable endorsements. The City reserves the right to request additional copies of any or all of the policies, endorsements, or notices relating thereto required under the Agreement. 7 .5 When the City requires a Certificate of Insurance to be furnished, Contractor's insurance is primary of all other sources available. When the City is a certificate holder and/or an additional insured, Contractor agrees no policy will expire, be canceled, or be materially changed to affect the coverage available without advance written notice to the City. 7.6 The policies required by the Agreement must contain a waiver of transfer rights of recovery (waiver of subrogation) against the City, its agents, representatives, officials, volunteers, officers, elected officials, and employees for any claims arising out of the work of Contractor where permitted by law. Page 5 of 33 7.7 All insurance certificates and applicable endorsements are subject to review and approval by the City's Risk Management Division . 7.8 Types and Amounts of Insurance. Contractor must obtain and retain throughout the term of the Agreement, at a minimum, the following: 7.8.1 Worker's compensation insurance in accordance with the provisions of Arizona law. If Contractor operates with no employees, Contractor must provide the City with written proof Contractor has no employees. If employees are hired during the course of this Agreement, Contractor must procure worker's compensations in accordance with Arizona law. 7.8.2 The Contractor shall maintain at all times during the term of this contract, a minimum amount of $1 million per occurrence/$2 million aggregate Commercial General Liability insurance, including Contractual Liability. For Commercial General Liability insurance, the City of Mesa, their agents, officials, volunteers, officers, elected officials or employees shall be named as additional insured, as evidenced by providing an additional insured endorsement. 7.8.3 Automobile liability, bodily injury and property damage with a limit of $1 million per occurrence including owned, hired and non-owned autos. 8. Requirements Contract. Contractor acknowledges and agrees the Agreement is a requirements contract; the Agreement does not guarantee any purchases will be made (minimum or maximum). Orders will only be placed when the City identifies a need and issues a purchase order or a written notice to proceed . The City reserves the right to cancel purchase orders or a notice to proceed within a reasonable period of time of issuance; any such cancellation will be in writing . Should a purchase order or notice to proceed be canceled, the City agrees to reimburse Contractor for any actual and documented costs incurred by Contractor. If the City cancels a purchase order following shipment of the Products but prior to delivery, the City shall pay all freight and handling charges for shipment and return shipment of such Products to Contractor. All returns shall be made in accordance with Contractor's Return Policy found at www.shi.com/returnpol icy and this Agreement, with the terms of this Agreement controlling . The City will not reimburse Contractor for any avoidable costs incurred after receipt of cancellation including, but not limited to, lost profits, shipment of Product, or performance of Services . The City reserves the right to purchase contracted items through other sources if determined in the best interests of the City to do so. 9. Notices. All notices to be given pursuant to the Agreement will be delivered to the Contractor at the address listed on Page 1 of this Agreement. Notice will be delivered pursuant to the requirements set forth the Mesa Standard Terms and Conditions that are attached to the Agreement as Exhibit C . 10. WARRANTY. Contractor warrants that the Services and Products will conform to the requirements of the Agreement. Additionally, Contractor warrants that all Services will be performed in a good , workman-like and professional manner. The City's acceptance of Services or Products provided by Contractor will not relieve Contractor from its obligations under this warranty. If any Products or Services are of a substandard or unsatisfactory manner as determined by the City, Contractor, at no additional charge to the City, will provide Products or redo such Services until in accordance with this Agreement and to the City's reasonable satisfaction. 11 . OEM PRODUCT WARRANTY. Contractor is a value-added reseller ("VAR ") of Products, not the Original Equipment Manufacturer ("OEM") or licensor, and , except as provided herein , Contractor disclaims any warranty responsibility regarding warranties provided by the OEM for the Products provided under this Agreem e nt ("O EM Product Warranty"). Contractor shall forward th e OEM Product Warranties to the City which are provided to Contractor from the OEM of the Product and , to the extent granted by the OEM , the City shall be the beneficiary of the OEM 's Product Warranties Page 6 of33 12. with respect to the Product. Contractor is not a party to any such terms of the OEM Product Warranty between the City and OEM and the City agrees to look to the OEM for satisfaction of any and all OEM Product Warranty claims related to that OEM's Product. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT , CONTRACTOR HEREBY DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING , BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WARRANTY OF NONINFRINGEMENT, OR ANY WARRANTY RELATING TO THIRD PARTY SERVICES OR PRODUCTS. THE DISCLAIMER CONTAINED IN THIS PARAGRAPH DOES NOT AFFECT THE TERMS OF ANY OEM PRODUCT WARRANTY. Representations of Contractor. To the best of Contractor's knowledge, Contractor agrees that: a. Contractor has no obligations, legal or otherwise, inconsistent with the terms of the Agreement or with Contractor's undertaking of the relationship with the City; b. Performance of the Services called for by the Agreement do not and will not violate any applicable law, rule, regulation, or any proprietary or other right of any third party; c. Contractor will not use in the performance of Contractor's responsibilities under the Agreement any proprietary information or trade secret of a former employer of its employees (other than City, if applicable); and d. Contractor has not entered into and will not enter into any agreement, whether oral or written, in conflict with the Agreement. 13. Mesa Standard Terms and Conditions. Exhibit C to the Agreement is the Mesa Standard Terms and Conditions as modified by the Parties, which are incorporated by reference into the Agreement as though fully set forth herein. In the event of any inconsistency between the terms of the Agreement and the Mesa Standard Terms and Conditions, the language of the Agreement will control. The Parties or a Party .are referred to as a "party" or "parties" in the Mesa Standard Terms and Conditions. The Term is referred to as the "term" in the Mesa Standard Terms and Conditions. 14. Counterparts and Facsimile or Electronic Signatures . This Agreement may be executed in two (2) or more counterparts, each of which will be deemed an original and all of which , taken together, will constitute one agreement. A facsimile or other electronically delivered signature to the Agreement will be deemed an original and binding upon the Party against whom enforcement is sought. 15. Incorporation of Recitals and Exhibits. All Recitals and Exhibits to the Agreement are hereby incorporated by reference into the Agreement as if written out and included herein . In the event of any inconsistency between the terms of the body of the Agreement and the Exhibits, the language of the Agreement will control. Exhibits to this Agreement are the following: (A) Scope of Work/ Technical Specifications (B) Pricing (C) Mesa Standard Terms and Conditions 16. Attorneys' Fees. The prevailing Party in any litigation arising out of the Agreement will be entitled to the recovery of its reasonable attorney's fees, court costs, and other litigation related costs and fees from the other Party. 17. Title, Risk of Loss, Returns. Contractor shall transfer to the City good and merchantable title to the Product, free from all liens , encumbrances and claims of others, upon delivery of the Product to and its receipt by the City, at which time title and risk of loss shall vest fully in the City, unless Page 7 of 33 notice of rejection is provided to Contractor's authorized representative within three (3) business days after such delivery. All returns of Product shall be made in accordance with this Agreement and Contractor's Return Policy found at www.shi.com/returnpolicy. with the terms of the Agreement controlling. 18. Additional Acts . The Parties agree to execute promptly such other documents and to perform such other acts as may be reasonably necessary to carry out the purpose and intent of the Agreement. 19. Headings. The headings of the Agreement are for reference only and will not limit or define the meaning of any provision of the Agreement. By executing below, each Party acknowledges that it understands, approves, and accepts all of the terms of the Agreement and the attached exhibits. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. SHI INTERNATIONAL CORP. By:--'-~~------- Cassie Skelton Printed Name Printed Name ~ 1 ~S SeaJlc.£5 D, ~ Contracts Manager ----=---------------Title Tit I e 2-27-/8) 2/27/18 Date Date REVIEWE~ By: tl..lJ 4...-V ! Page 8 of 33 EXHIBIT A SCOPE OF WORK 1. MINIMUM REQUIREMENTS. Contractor must meet the following minimum qualifications: a. A full range of information technology solution Products and Services to meet varying requirements of governmental agencies . b. Have a strong national presence as a computer solutions provider. c . Have a distribution model capable of delivering Products, free of charge, in a timely manner on a nationwide basis. d. Have a demonstrated sales presence . e. Ability to provide a toll-free telephone and state of the art electronic facsimile and internet ordering and billing capabilities. f. Be able to meet the minimum requirements of the cooperative purchasing program detailed herein . 2. ORDERING. Although the City is open to alternate ordering methods, the primary methods for customers placing orders with the Contractor is through the following: a. Online b. Telephone c. Fax d. Email 3. SCOPE OF PRODUCTS. Contractor will provide the ab ility to purchase a comprehensive, wide variety of Information Technology Solution Products including but not limited to the following categories : a. Persona l Computer Systems : National brand name desktop PCs, notebooks and laptops from Enterprise Tier and Middle Tier Contractors that are business related computers , manufactured by companies, such as , Apple, COMPAQ, Dell, Gateway, Hewlett Packard , IBM / Lenovo and Toshiba . b. Standard Business Workstation : These will be used for typical tasks, wh ich will include word processing , spreadsheet analysis , database management, business graphics , statistical analysis, internet, and other office automation activities. Product will include the operating system license, software media and documentation in the hardware shipment. c. High End Workstation: These will be used by application developers using GIS, CASE or other high-level language development tools, Computer Aided Design and Drafting professional , Internet Application developers or other sophisticated application work. Product will include the operating system license, software media and documentation in the hardware shipment. d. Laptop Computer or Notebook: These will be used by traveling or remote access users for typical office automation and business productivity use. With a port replicator or docking station , it may also be used as a standard desktop. Product will include the operating system license, software media and documentation in the hardware shipment. e. Network Equipment: This includes equipment primarily used for communications over an IP network . This includes layer 2 and layer 3 switches, routers, area wireless access points, point-to-point wireless access, optics , media interfaces (i.e. serial , T1 , T3 , OC3) and fiber channel. Class of equipment should include home office , small and medium bu s in es s, and enterp rise. Contractors may inc lude, but not limited to, Cisco Systems, Dell , Page 9 of 33 4. 5. Juniper Networks, HP, Extreme Networks, Enterasys Networks, D-Link, Netgear, and Brocade Communications Systems. f . Monitors: These will include plug and play compatible monitors that are manufactured for the above systems and/or any other brand that may be specifically called for by the ordering entity and which meet the most current UL and OSHA requirements. g . Computer and Network Products and Peripherals: Complete availability of major manufacturers Product lines on items such as, but not limited to RAM, graphic accelerator cards, network interface cards, cables, printers, scanners, keyboards, drives, memory cards, cables, batteries, etc. h. Services: Services such as cloud computing, consulting, technical support, leasing/financing, trade-ins, repair, design, analysis, configuration, implementation , installation, training, and maintenance, etc. In addition, Services which are related to the design, use or operation of the Products being purchased such as system configurations, testing, hardware/software installation, upgrades, imaging, etc. i. j . Note: All hardware must come fully assembled . For example, if extra memory, additional drives or peripherals are ordered , the Contractor must install them unless the Participating Agency request they not be installed. Contractor shall provide these assembly and installation services as stated in the applicable Order; any additional terms and costs that may apply will be identified in the quote. In cases of custom configuration (e.g.: imaging, etching, kitting, build to order machines, rack and stack servers) and large roll outs, there may be an additional cost associated with assembly. Any additional costs will be noted at the time of quoting . Installation/deployment projects typically are governed by a scope of work specific to the project which may require an additional cost. If installation is requested the Contractor will review options and provide the scope of work as well as any associated costs at the time of quoting . Comprehensive Product Offering : Contractor's complete catalog and Services set forth in Exhibit B shall be available. The City reserves the right to accept or reject any or all items offered. Financing: Options available such as lease programs and conditional sales contracts. LICENSES. Participating Agencies may be required to sign a separate agreement, rider or End User Licensing Agreement ("EULA·) as required by manufacturers. DEFECTIVE PRODUCT. All defective Products shall be replaced and exchanged by the Contractor at no cost to the City in accordance with this Agreement and Contractor's Return Policy found at www.shi.com/returnpolicy, with the terms of this Agreement controlling. Contractor will order a replacement unit within one (1) business day of notice of damage, defect or DOA from the City. The cost of transportation, unpacking, inspection, re-packing , re-shipping or other like expenses shall be paid by the Contractor. All replacement Products must be received by the City within seven (7) days of initial notification. Page 10 of 33 Item # Product 1) Group 1-Systems 2) Group 2 -Input Devices 3) Group 3 -Output Devices EXHIBIT B PRICING Product/ Group 1) Desktops 2) Notebooks 3) Tablets 4) Servers (1 Processor, 2 Processor, 4+ Processor, Blade, Tower, Unix, Handhelds, etc) 5) Keyboards 6) Mice 7) Imaging Scanners 8} POS Scanners 9} Pointing Devices 10) Bar Code Readers 11) Audio Input 12) Input Adapters 13) PC and Network Cameras 14) Input Cables 15) Input Accessories 16) Disp lays 17) Printers Page 11 of 33 Discount Manufacturer Name 4 .50% SH l's Full Catalog of Systems 4.50% SH l's Full Catalog of Systems 4.50% SH l's Full Catalog of Systems 4.50% SH l's Full Catalog of Systems 5.00% SH l 's Full Catalog of Input Devices 5 .00% SH l 's Full Catalog of Input Devices 4.00% SH l 's Full Catalog of Input Devices 4.00% SH l 's Full Catalog of Input Devices 4.00% SH l 's Full Catalog of Input Devices 4 .00% SH l 's Full Catalog of Input Devices 4.00% SH l 's Full Catalog of Input Devices 4.00% SH l's Full Catalog of Input Devices 4.00% SH l 's Full Catalog of Input Devices 4.00% SH l 's Full Catalog of Input Devices 4.00% SH l's Full Catalog of Input Devices 4.50% SH l's Full Catalog of Output Devices 4.50% SH l's Full Catalog of Output Devices 4.50% SH l's Full Catalog of 18) Inkjet Printers Output Devices 4.50% SH l's Full Catalog of 19) Inkjet Photo Printers Output Devices 4.50% SH l's Full Catalog of 20) Laser Printers Output Devices 4.50% SH l's Full Catalog of 21) Label Printers Output Devices 4.50% SH l's Full Catalog of 22) Dot Matrix Printers Output Devices 4.50% SH l's Full Catalog of 23) Multi-Function Printers Output Devices 4.50% SH l's Full Catalog of 24) Wide Format Printers Output Devices 4.50% SH l's Full Catalog of 25) Multi-Function Inkjet Printers Output Devices 4.50% SH l's Full Catalog of 26) Wide Format Printers Output Devices 4.50% SH l's Full Catalog of 27) Fax Machine Printers Output Devices 4.50% SH l's Full Catalog of 28) Printer Accessories Output Devices 4.50% SH l 's Full Catalog of 29) Projectors Output Devices 4.50% SH l's Full Catalog of 30) Projector Accessories Output Devices 4.50% SH l's Full Catalog of 31) Audio Input Output Devices 4.50% SH l 's Full Catalog of 32) Video Cards Output Devices 4.50% SH l's Full Catalog of 33) Sound Cards Output Devices 4.50% SH l's Full Catalog of 34) Output Accessories Output Devices 4.50% SHl's Full Catalog of 35) Printer Consumables Output Devices 36) Desktop 4.50% SHl's Full Catalog of Memory 4) Group 4-Memory 37) Flash 4.50% SH l's Full Catalog of Memory Page 12 of 33 38) Networking 4.50% SH l's Full Catalog of Memory 39) Notebook 4.50% SH l's Full Catalog of Memory 40) Printer/ Fax 4.50% SH l's Full Catalog of Memory 41) Server 4.50% SH l's Full Catalog of Memory 4.00% SH l's Full Catalog of 42) Adapters Fiber Channel Storage Devices 4.00% SH l's Full Catalog of 43) Adapters FireWire / USB Storage Devices 4.00% SH l's Full Catalog of 44) Adapters IDE/ATA/SATA Storage Devices 4.00% SH l's Full Catalog of 45) Adapters RAID Storage Devices 4.00% SH l's Full Catalog of 46) Adapters SCSI Storage Devices 4.00% SH l's Full Catalog of 47) Bridges & Routers Storage Devices 48) Disk Arrays 4.00% SH l's Full Catalog of Storage Devices 49) Disk Arrays JBOD 4.00% SH l's Full Catalog of Storage Devices 5) Group 5 -Storage Devices SO) Drives Magneto-Optical 4.00% SH l's Full Catalog of Storage Devices 51) Drives Removable Disks 4.00% SH l's Full Catalog of Storage Devices 52) Fiber Channel Switches 4.00% SH l's Full Catalog of Storage Devices 53) Hard Disks -External 4.00% SH l's Full Catalog of Storage Devices 4.00% SH l's Full Catalog of 54) Hard Disks -Fiber Channel Storage Devices 4.00% SHl's Full Catalog of 55) Hard Disks -IDE/ATA/S Storage Devices 4.00% SH l's Full Catalog of 56) Hard Disks -Notebook Storage Devices 4.00% SHl's Full Catalog of 57) Hard Disks -SCSI Storage Devices Page 13 of 33 4.00% SH l's Full Catalog of 58) Networking Accessories Storage Devices 4.00% SH l's Full Catalog of 59) Optical Drives -CD-ROM Storage Devices 4.00% SH l's Full Catalog of 60) Optical Drives -CD-RW Storage Devices 61) Optical Drives -DVD-CD 4.00% SH l's Full Catalog of Storage Devices 62) Optical Drives -DVD-RW 4.00% SH l's Full Catalog of Storage Devices 63) Storage Accessories 4.00% SHl's Full Catalog of Storage Devices 64) Storage -NAS 4.00% SH l's Full Catalog of Storage Devices 65) Storage -SAN 4.00% SH l's Full Catalog of Storage Devices 66) Tape Autoloaders -AIT 4.00% SH l's Full Catalog of Storage Devices 4.00% SH l's Full Catalog of 67) Tape Autoloaders -DAT Storage Devices 4.00% SH l's Full Catalog of 68) Tape Autoloaders -DLT Storage Devices 4.00% SH l's Full Catalog of 69) Tape Autoloaders -LTO Storage Devices 4.00% SH l 's Full Catalog of 70) Tape Drives -4mm Storage Devices 4.00% SH l's Full Catalog of 71) Tape Drives -8mm/VXA Storage Devices 4.00% SH l's Full Catalog of 72) Tape Drives -AIT Storage Devices 4.00% SH l's Full Catalog of 73) Tape Drives -DAT Storage Devices 74) Tape Drives -DLT 4.00% SH l 's Full Catalog of Storage Devices 75) Tape Drives -LTO/Ultrium 4.00% SHl's Full Catalog of Storage Devices 76) Tape Drives SOLT 4.00% SH l 's Full Catalog of Storage Devices 77) Tape Drives -Travan 4.00% SH l's Full Catalog of Storage Devices Page 14of 33 78) 10/100 Hubs & Switches 5.00% SH l's Full Catalog of Network Equipment 79) Bridges & Routers 5.00% SH l's Full Catalog of Network Equipment 5.00% SH l 's Full Catalog of 80) Gigabit Hubs & Switches Network Equipment 5.00% SH l 's Full Catalog of 81) Concentrators & Multiplexers Network Equipment 5.00% SH l's Full Catalog of 82) Hardware Firewalls Network Equipment 5.00% SH l's Full Catalog of 83) Intrusion Detection Network Equipment 5.00% SH l 's Full Catalog of 84) KVM Network Equ ipment 5.00% SH l's Full Catalog of 85) Modems Network Equipment 6) Group 6 -Network 5.00% SH l 's Full Catalog of Equipment 86) Network Test Equipment Network Equipment 5.00% SH l's Full Catalog of 87) Network Adapters Network Equipment 5.00% SHl's Full Catalog of 88) Network Cables Network Equipment 5.00% SH l's Full Catalog of 89) Network Accessories Network Equipment 5.00% SH l's Full Catalog of 90) Repeaters & Transceivers Network Equipment 5.00% SH l's Full Catalog of 91) Wireless LAN Accessories Network Equipment 5.00% SHl 's Full Catalog of 92) Token Authentication Network Equipment 5.00% SHl's Full Catalog of 93) l0G Fiber Optic Transceivers Network Equipment 5.00% SH l's Full Catalog of 94) lG Fiber Optic Tra nsceivers Network Equipment 95) Licensing Packages 4.50% SH l's Full Catalog of (e.g. Microsoft) Software 7) Group 7 -Software 4.50% SH l's Full Catalog of 96) Licensing Backup Software 4.50% SH l's Full Catalog of 97) Licensing Barcode/OC Software Page 15 of 33 4.50% SH l's Full Catalog of 98) Licensing Business Application Software 4.50% SH l's Full Catalog of 99) Licensing CAD/CAM Software 4.50% SH l's Full Catalog of 100) Licensing -Cloning Software 4.50% SH l's Full Catalog of 101) Licensing -Computer Services Software 4.50% SHl's Full Catalog of 102) Licensing -Database Software 4.50% SH l's Fu ll Catalog of 103) Licensing -Development Software 4.50% SH l 's Full Catalog of 104) Licensing -Entertainment Software 4.50% SH l's Fu ll Catalog of 105) Licensing -Financial Software 4.50% SH l 's Full Catalog of 106) Licensing -Flow Chart Software 4 .50% SH l's Full Catalog of 107) Licensing -Graphic Design Software 4.50% SH l 's Full Catalog of 108) Licensing -Handheld Software 4.50% SH l 's Full Catalog of 109) Licensing -Network OS Software 4.50% SHl's Full Catalog of 110) Licensing -OS Software 111) Licensing -Personal 4.50% SH l's Full Catalog of Organization Software 4 .50% SHl's Full Catalog of 112) Licensing -Presentation Software 4 .50% SH l's Full Catalog of 113) Licensing -Reference Software 4.50% SH l's Full Catalog of 114) Licensing -Report Analysis Software 4.50% SH l's Full Catalog of 115) Licensing -Spreadsheet Software 4.50% SH l's Full Catalog of 116) Licensing -Utilities Software 4.50% SH l's Full Catalog of 117) Licensing -Warranties Software Page 16 of 33 4.50% SH l's Full Catalog of 118) Licensing -Web Development Software 4.50% SH l's Full Catalog of ' 119) Licensing -Word Processing Software 4.50% SH l's Full Catalog of 120) Software -Backup Software 4.50% SH l's Full Catalog of 121) Software -Barcode / OCR Software 122) Software -Business 4.50% SH l's Full Catalog of Application Software 4.50% SH l 's Full Catalog of 123) Software -CAD/CAM Software 4.50% SH l's Full Catalog of 124) Software -Cloning Software 4.50% SH l's Full Catalog of 125) Software -Computer Services Software 4.50% SH l's Full Catalog of 126) Software -Database Software 4.50% SH l's Full Catalog of 127) Software -Development Software 4.50% SH l 's Full Catalog of 128) Software -Entertainment Software 4.50% SH l's Full Catalog of 129) Software -Financial Software 4.50% SH l's Full Catalog of 130) Software -Flow Chart Software 4.50% SH l's Full Catalog of 131) Software -Graphic Design Software 4.50% SH l's Full Catalog of 132) Software -Handheld Software 4.50% SH l's Full Catalog of 133) Software -OS Software 134) Software -Personal 4.50% SH l's Full Catalog of Organization Software 4.50% SH l's Full Catalog of 135) Software -Presentation Software 4.50% SH l's Full Catalog of 136) Software -Reference Software 4.50% SH l's Full Catalog of 137) Software -Report Ana lysis Software Page 17 of33 4.50% SH l 's Full Catalog of 138) Software -Spreadsheet Software 4.50% SH l's Full Catalog of 139) Software -Utilities Software 4 .50% SH l's Full Catalog of 140) Software -Warranties Software 4 .50% SHl 's Full Catalog of 141) Software -Web Development Software 4.50% SH l's Full Catalog of 142) Software -Word Processing Software 4 .00% SH l's Full Catalog of 143) Media -4mm tape Media Supplies 4.00% SH l's Full Catalog of 144) Media -AIT tape Media Supplies 4.00% SH l's Full Catalog of 145) Media -DAT tape Media Supplies 4.00% SHl's Full Catalog of 146) Media-DLTtape Media Supplies 147) Media LTO / Ultrium tape 4.00% SH l's Full Catalog of drive Media Supplies 8) Group 8 -Media Supplies 4 .00% SHl 's Full Catalog of 148) Media -Magneto -Optical Media Supplies 4.00% SH l's Full Catalog of 149) Media -Optical Media Supplies 4.00% SHl's Full Catalog of 150) Media -SLR tape Media Supplies 4.00% SH l's Full Catalog of 151) Media -Travan tape Media Supplies 4.00% SHl's Full Catalog of 152) Media -VXA tape Media Supplies 4.00% SH l 's Full Catalog of 153) Media -zip Media Supplies 4.00% SH l's Full Catalog of Collaboration and IP 154) IP phones Te lephony Group 9 -Collaboration & 4.00% SH l 's Full Catalog of 9) IP Telephony Collaboration and IP 155) Video conferencing products Telephony 4.00% SH l 's Full Catalog of Collaboration and IP 156) Voice gateways / servers Telephony Page 18 of 33 4.00% SH l's Full Catalog of Co llaboration and IP 15 7) Headsets Te lephony 4.00% SH l's Full Catalog of Collaboration and IP 15 8 ) Audio conferencing products Telephony 4.00% SH l 's Full Catalog of Collaboration and IP lS9) Analog phones Telephony 4.00% SH l's Full Catalog of Collaboration and IP 160) Accessories Telephony 4 .00% SH l's Full Catalog of 161) Advanced I ntegration Other 4.00% SH l's Full Catalog of 162) Asset Disposal Other 4.00% SH l 's Full Catalog of 163) Asset Management Other 4.00% SH l's Full Catalog of 164) Cables Other 4.00% SH l 's Full Catalog of 165) Cables -custom Other 4.00% SH l's Full Catalog of 166) Cables -printer Other 4.00% SH l's Full Catalog of Other 167) Complex warranties 4.00% SH l 's Full Catalog of 10) Group 10 -Other 168) Desktop Accessories Other 4 .00% SH l's Full Catalog of 169) Display Accessories Other 4 .00% SH l 's Full Catalog of 170) Electronic Services Other 4 .00% SHl's Full Catalog of 171) Handheld Accessories Other 4.00 % SHl 's Full Catalog of ll2) Imaging Accessories Other 4.0 0% SH l 's Full Catalog of 173) Imaging _ Camcorders Other 4.0 0% SHl's Full Catalog of 174) Imaging _ Digital Cameras Other Page 19 of 33 4.00% SHl's Full Catalog of 17 5 ) Internal Lab Service Ot her 4.00% SH l's Full Catalog of 17 6) Labfees 0 ther 4.00% SH l's Full Catalog of 177) Managed Services Other 4 .00% SH l's Full Catalog of 178) Miscellaneous solutions Other 4.00% SH l's Full Catalog of 179) Mounting hardware for Other vehicles 4 .00% SH l's Full Catalog of 180) Networking Warranties Other 4.00% SH l's Full Catalog of 181) Notebook Accessories Other 4.00% SH l's Full Catalog of 182) Notebook Batteries Other 4.00% SH l's Full Catalog of 183 ) PC Lab order services Other 4.00% SH l's Full Catalog of 184) POS Accessories Other 4.00% SH l's Full Catalog of 185) POS Displays Other 4 .00% SH l's Full Catalog of 186) Power Accessories Other 4 .00% SHl's Full Catalog of 187) Power Surge Protection Other 4.00% SH l's Full Catalog of 188) Power UPS Other 4.00% SH l's Full Catalog of 189) Server Accessories Other 4.00% SH l's Full Catalog of l90) service Charge Other 4.00% SH l's Full Catalog of 191) System components Other 4.00% SH l's Full Catalog of 192) Training Courses Other 4.00 % SH l 's Full Catalog of 193) Train ing Reference Manuals Other 4.0 0% SHl's Full Catalog of 194) Warranties -Electronic Other Page 20 of 33 4.00% SH l's Full Catalog of 195) iPAD / Tablet Stylus Other 4.00% SH l's Full Catalog of 196) Mouse / Wrist Pads Other 4.00% SH l's Full Catalog of 197) Security Locks and Hardware Other 4.00% SHl's Full Catalog of 198) Tools Other 199) Document Scanner 4.00% SH l's Full Catalog of Accessories Other 4.00% SHl's Full Catalog of 200) Flatbed Scanners Other 4.00% SH l's Full Catalog of 201) Mobile Scanners Other 4.00% SH l's Full Catalog of 202) Network Scanners Other 4.00% SH l 's Full Catalog of 203) Sheet fed Scanners Other 4.00% SH l's Full Catalog of 204) Wide Format Scanners Other 205) Workgroup / Department 4.00% SH l's Full Catalog of Scanner Other 4 .00% SH l's Full Catalog of 206) Build to Order Desktops Other 4.00% SH l's Full Catalog of 207) Nettop Other 4 .00% SH l's Full Catalog of 208) Point of Sale Other 4.00% SH l's Full Catalog of 209) Ultra Small Form Factor Other 210) Apple/ Mac Memory 4.00% SH l's Full Catalog of Upgrades Other 4.00% SHl's Full Catalog of 211) Chips/ SIMMs/SIPPs / ROMs Other 4 .00% SH l's Full Catalog of 212) Computer Cases Other 4.00% SH l's Full Catalog of 213) CPUs/ Fans Other 4.00% SH l's Full Catalog of 214) Memory Accessories Other Page 21 of 33 4.00% SH l's Full Catalog of 215) Motherboards/ Chassis Other 4.00% SH l's Full Catalog of 216) 1 - 2 port Serial Boards Other 4.00% SH l's Full Catalog of 217) 3+ port Serial Boards Other 4.00% SH l's Full Catalog of 218) Console Server Other 4.00% SH l's Full Catalog of 219) Device Server Other 4.00% SH l's Full Catalog of 220) Terminal Server Other 4.00% SH l's Full Catalog of 221) Content Management Other 4.00% SH l's Full Catalog of 222) Firewall/ VPN Appliances Other 223) Multifunction Security 4.00% SH l's Full Catalog of Appliances Other 4.00% SHl's Full Catalog of 224) Network Camera Accessories Other 4.00% SH l's Full Catalog of 225) Network Cameras Other 226) Physical/Environmental 4.00% SH l's Full Catalog of Security Other 227) Security Appliance 4.00% SH l's Full Catalog of Accessories Other 4.00% SH l's Full Catalog of 228) Security Tokens Other 4.00% SH l's Full Catalog of 229) Unified Threat Management Other 4.00% SH l's Full Catalog of 230) 2-way Radios/ Walkie Talkies Other 4.00% SHl's Full Catalog of 231) Apple Notebooks Other 232) Convertible PCs/ Slate PCs/ 4.00% SH l's Full Catalog of iPAD Other 4.00% SH l's Full Catalog of 233) iPAD Other 4.00% SH l's Full Catalog of 234) Slate Tablet Computers Other Page 22 of 33 4.00% SHl's Full Catalog of 235 ) GPS/ PDA Ot her SH l's Full Catalog of 4.00% 23 6) Wireless Communication Other De vices 4.00% SHl's Full Catalog of 23 7) Batteries Other 4.00% SHl's Full Catalog of 23 8) Power Supplies/ Adapters Other 4.00% SHl's Full Catalog of 239) Rackmountain Equipment Other 4 .00% SHl's Full Catalog of 240) Remote Power Management Other 4.00% SHl's Full Catalog of 241 ) Surge Suppressors Other 4.00% SHl's Full Catalog of 242) UPS/ Battery Backup Other - 4.00% SH l's Full Catalog of 243) 14" & smaller LCD Display Other 4.00% SH l's Full Catalog of 244) 15-19" LCD Display Other 4.00% SH l's Full Catalog of 245) 15-19" Wide LCD Display Other 4.00% SH l's Full Catalog of 246) 15-19" Wide LED Display Other 4.00% SH l's Full Catalog of 247 ) 20-30" LCD Display Other 4.00% SH l's Full Catalog of 248) 20-30" Wide LCD Display Other 4.00% SHl's Full Catalog of 249) 20-30" Wide LED Display Other 4.00% SH l's Full Catalog of 250) PColP and Zero Client Displays Other 4.00 % SH l's Full Catalog of 251) Arm Mounts Other 4.00 % SH l's Full Catalog of 252) Ceiling Mounts Other 4.0 0% SH l's Full Catalog of 253) Combo Mounts Other 4.0 0% SH l's Full Catalog of 254) Desktop Stands/ Risers Other Page 23 of 33 4.00% SHl's Full Catalog of 255) Flat Wall Mounts Other 4.00% SH l's Full Catalog of 256) Mount Accessories Other 4.00% SH l's Full Catalog of 257) Pole Display Other 4 .00% SH l 's Full Catalog of 258) Stands/ Carts/ Feet Other 4.00% SH l 's Full Catalog of 259) Tilt Wall Mounts Other 4 .00% SH l's Full Catalog of 260) C-Cure Products Other 4.00% SH l 's Full Catalog of 261) lstar Products Other SERVICE STANDARD DISCOUNT FROM HOURLY RATE STANDARD RATE Design and Analysis $ 125.00 4% Configuration $ 165.00 4% Implementation $ 185.00 4% 11) Group 11 -Services Installation $ 185.00 4% Training $ 99.00 4% Maintenance & Support $ 99 .00 4% All other Current and Future Products not specifically identified here will be offered at a 4% discount off SHI Advertised List price. Please see description below for more information on SHl 's discount model for this contract. All d iscounts a rticulated he r e re present the m i nimum discou nts off SHI Advertised List Price; actual discounts may be significantly higher. Page 24 of 33 The comprehensive SHI offering for National IPA consists of all hardware, software, and services available to our customers in the public sector marketplace. The discount structure offered to National IPA is based on our Advertised Price List which can be located on www.shi.com. In many cases, SHI Advertised List Price already reflects a substantial discount off of Manufacturer Published List prices. Given the breadth of manufacturers and products that SHI offers, there will be many opportunities for SHI to secure additional discounts for eligible contract users. We work to provide your contract users with the most advantageous pricing available, above and beyond the minimum discounts offered, whenever possible. SHI prides ourselves on being honest and transparent with our customers especially when it comes to pricing. We base our discount structure on SHI Advertised Price as this is a verifiable source. We do not inflate this Advertised Price for RFPs in order to make our discounts appear larger. Other vendors may use MSRP or Publisher List price, which can be unreliable as a pricelist may not exist for every product, a pricelist can change from day to day, and a pricelist can be inconsistent depending on where you source the information from. When a vendor manipulates contract language in this manner or uses a loose definition of cost, it results in an increase in profit for them and higher prices for customers. SHI is willing to provide complete transparency over the life of the contract as it relates to our costs and what we charge National IPA customers. Page 25 of 33 EXHIBIT C MESA STANDARD TERMS AND CONDITIONS 1. INDEPENDENT CONTRACTOR. It is expressly understood that the relationship of Contractor to the City will be that of an independent contractor. Contractor and all persons employed by Contractor, either directly or indirectly, are Contractor's employees, not City employees. Accordingly, Contractor and Contractor's employees are not entitled to any benefits provided to City employees including, but not limited to, health benefits, enrollment in a retirement system, paid time off or other rights afforded City employees. Contractor employees will not be regarded as City employees or agents for any purpose, including the payment of unemployment or workers' compensation. If any Contractor employees or subcontractors assert a claim for wages or other employment benefits against the City, Contractor will defend, indemnify and hold harmless the City from all such claims . 2. SUBCONTRACTING. Contractor may not subcontract work under this Agreement without the express written permission of the City. If Contractor has received authorization to subcontract work, it is agreed that all subcontractors performing work under the Agreement must comply with its provisions. Further, all agreements between Contractor and its subcontractors must provide that the terms and conditions of this Agreement be incorporated therein. 3. ASSIGNMENT. This Agreement may not be assigned either in whole or in part without first receiving the other Party's written consent. Any attempted assignment, either in whole or in part, without such consent will be null and void and in such event the other Party will have the right at its option to terminate the Agreement. No granting of consent to any assignment will relieve either Party from any of its obligations and liabilities under the Agreement. Notwithstanding the foregoing, either Party may assign this Agreement and its rights, interests, liabilities and obligations thereunder to a successor pursuant to a merger, consolidation or sale of all or substantially all its assets following sixty (60) days written notice. 4 . SUCCESSORS AND ASSIGNS, BINDING EFFECT. This Agreement will be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns. 5. NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for the exclusive benefit of the parties. Nothing set forth in this Agreement is intended to create, or will create, any benefits, rights, or responsibilities in any third parties. 6. NON-EXCLUSIVITY. The City, in its sole discretion, reserves the right to request the Products or Services set forth herein from other sources when deemed necessary and appropriate. No exclusive rights are encompassed through this Agreement. 7. AMENDMENTS. There will be no oral changes to this Agreement. This Agreement can only be modified in a writing signed by both parties. No charge for extra work or Product will be allowed unless approved in writing, in advance, by the City and Contractor. 8. TIME OF THE ESSENCE. Time is of the essence to the performance of the parties' obligations under this Agreement. 9. COMPLIANCE WITH APPLICABLE LAWS. a . General . Contractor must procure all permits and licenses, and pay all charges and fees necessary and incidental to the lawful conduct of business. Contractor must stay fully informed of existing and future federal, state, and local laws, ordinances, and regulations that in any manner affect the fulfillment of this Agreement and must comply with the same at its own expense. Contractor bears full responsibility for training, safety, and providing necessary equipment for all Contractor personnel to achieve throughout the term of the Agreement. Upon request, Contractor will demonstrate to the City's satisfaction any programs, procedures, and other activities used to ensure compliance. Page 26 of33 b. Drug-Free Workplace. Contractor is hereby advised that the City has adopted a policy establishing a drug-free workplace for itself and those doing business with the City to ensure the safety and health of all persons working on City contracts and projects. Contractor will require a drug-free workplace for all Contractor personnel working under this Agreement. Specifically, all Contractor personnel who are working under this Agreement must be notified in writing by Contractor that they are prohibited from the manufacture, distribution, dispensation, possession, or unlawful use of a controlled substance in the workplace. Contractor agrees to prohibit the use of intoxicating substances by all Contractor personnel, and will ensure that Contractor personnel do not use or possess illegal drugs while in the course of performing their duties. c. Federal and State Immigration Laws. Contractor agrees to comply with the Immigration Reform and Control Act of 1986 (IRCA) in performance under this Agreement and to permit the City and its agents to inspect applicable personnel records to verify such compliance as permitted by law. Contractor will ensure and keep appropriate records to demonstrate that all Contractor personnel have a legal right to live and work in the United States . i. As applicable to Contractor, under the provisions of A. RS. § 41-4401 , Contractor hereby warrants to the City that Contractor and each of its subcontractors will comply with, and are contractually obligated to comply with, all federal immigration laws and regulations that relate to their employees and A.RS. § 23-214(A) (hereinafter "Contractor Immigration Warranty"). ii. A breach of the Contractor Immigration Warranty will constitute as a material breach of this Agreement and will subject Contractor to penalties up to and including termination of this Agreement at the sole discretion of the City. iii. The City retains the legal right to inspect the papers of all Contractor personnel who provide services under this Agreement to ensure that Contractor or its subcontractors are complying with the Contractor Immigration Warranty. Contractor agrees to assist the City in regard to any such inspections. iv. The City may, at its sole discretion, conduct random verification of the employment records of Contractor and any subcontractor to ensure compliance with the Contractor Immigration Warranty. Contractor agrees to assist the City in regard to any random verification performed. v. Neither Contractor nor any subcontractor will be deemed to have materially breached the Contractor Immigration Warranty if Contractor or subcontractor establishes that it has complied with the employment verification provisions prescribed by Sections 274A and 2748 of the Federal Immigration and Nationality Act and the E-Verify requirements prescribed by A.RS. § 23-214 (A). d. Nondiscrimination. Contractor represents and warrants that it does not discriminate against any employee or applicant for employment or person to whom it provides services because of race, color, religion, sex, national origin, or disability, and represents and warrants that it complies with all applicable federal, state, and local laws and executive orders regarding employment. Contractor and Contractor's personnel will comply with applicable provisions of Title VII of the U.S . Civil Rights Act of 1964, as amended, Section 504 of the Federal Rehabilitation Act, the Americans with Disabilities Act (42 U.S.C . § 12101 et seq .), and applicable rules in performance under this Agreement. e. State Sponsors of Terrorism Prohibition. Per A.RS. § 35-392, Contractor must not be in violation of section 60) of the Federal Export Administration Act and subsequently prohibited by the State of Arizona from selling goods of services to the City. 10. SALES/USE TAX, OTHER TAXES. a . Contractor is responsible for the payment of all taxes including federal, state, and local taxes related to or arising out of Contractor's Services under this Agreement, including by way of illustration but not limitation, federal and state income tax, Social Security tax, Page 27 of 33 unemployment insurance taxes, and any other taxes or business license fees as required. If any taxing authority should deem Contractor or Contractor employees an employee of the City, or should otherwise claim the City is liable for the payment of taxes that are Contractor's responsibility under this Agreement, Contractor will indemnify the City for any tax liability, interest, and penalties imposed upon the City. b. The City is exempt from paying certain federal excise taxes and will furnish an exemption certificate upon request. The City is not exempt from state and local sales/use taxes. 11 . AMOUNTS DUE THE CITY. Contractor must be current and remain current in all obligations due to the City during the performance of Services under the Agreement. Payments to Contractor may be offset by any delinquent amounts due the City or fees and charges owed to the City. 12. PUBLIC RECORDS. Contractor acknowledges that the City is a public entity, subject to Arizona's public records laws (A.R.S. § 39-121 et. seq.) and that any documents related to this Agreement may be subject to disclosure pursuant to state law in response to a public records request or to subpoena or other judicial process. 12.1 . If Contractor believes document related to the Agreement contains trade secrets or other proprietary data, Contractor must notify the City and include with the notification a statement that explains and supports Contractor's claim. Contractor also must specifically identify the trade secrets or other proprietary data that Contractor believes should remain confidential. 12.2 . In the event the City determines it is legally required to disclose pursuant to law any documents or information Contractor deems confidential trade secrets or proprietary data, the City, to the extent possible, will provide Contractor with prompt written notice by certified mail, fax, email or other method that tracks delivery status of the requirement to disclose the information so Contractor may seek a protective order from a court having jurisdiction over the matter or obtain other appropriate remedies . The notice will include a time period for Contractor to seek court ordered protection or other legal remedies as deemed appropriate by Contractor. If Contractor does not obtain such court ordered protection by the expiration of said time period, the City may release the information without further notice to Contractor. 13. AUDITS AND RECORDS. Contractor must preserve the records related to this Agreement for six (6) years after completion of the Agreement. The City or its authorized agent reserves the right to inspect any records related to the performance of work specified herein. In addition, the City may inspect any and all payroll, billing or other relevant records kept by Contractor in relation to the Agreement. Contractor will permit such inspections and audits during normal business hours and upon reasonable notice by the City. The audit of records may occur at Contractor's place of business or at City offices, as determined by the City. 14. BACKGROUND CHECK. The City may conduct criminal, driver history, and all other requested background checks of Contractor personnel who would perform Services under the Agreement or who will have access to the City's information, data, or facilities in accordance with the City's current background check policies. Any officer, employee, or agent that fails the background check must be replaced immediately for any reasonable cause not prohibited by law. 15. SECURITY CLEARANCE AND REMOVAL OF CONTRACTOR PERSONNEL. The City will have final authority, based on security reasons: (i) to determine when security clearance of Contractor personnel is required; (ii) to determine the nature of the security clearance, up to and including fingerprinting Contractor personnel; and (iii) to determine whether or not any individual or entity may provide Services under this Agreement. If the City objects to any Contractor personnel for any reasonable cause not prohibited by law, then Contractor will, upon notice from the City, remove any such individual from performance of Services under this Agreement. 16. DEFAULT. a. A party will be in default if that party: Page 28 of 33 i. Is or becomes insolvent or is a party to any voluntary bankruptcy or receivership proceeding , makes an assignment for a creditor, or there is any similar action that affects Contractor's capability to perform under the Agreement; ii. Is the subject of a petition for involuntary bankruptcy not removed within sixty (60) calendar days; iii. Conducts business in an unethical manner as set forth in the City Procurement Rules Article 7 or in an illegal manner; or iv. Fails to carry out any term , promise, or condition of the Agreement. b. Contractor will be in default of this Agreement if Contractor is debarred from participating in City procurements and solicitations in accordance with Article 6 of the City's Procurement Rules. c . Notice and Opportunity to Cure. In the event a party is in default then the other party may, at its option and at any time, provide written notice to the defaulting party of the default. The defaulting party will have thirty (30) days from receipt of the notice to cure the default; the thirty (30) day cure period may be extended by mutual agreement of the parties, but no cure period may exceed ninety (90) days. A default notice will be deemed to be sufficient if it is reasonably calculated to provide notice of the nature and extent of such default. Failure of the non-defaulting party to provide notice of the default does not waive any rights under the Agreement. d. Anticipatory Repudiation. Whenever the City in good faith has reason to question Contractor's intent or ability to perform, the City may demand that Contractor give a written assurance of its intent and ability to perform . In the event that the demand is made and no written assurance is given within five (5) calendar days, the City may treat this failure as an anticipatory repudiation of the Agreement. 17. REMEDIES. The remedies set forth in this Agreement are not exclusive . Election of one remedy will not preclude the use of other remedies. In the event of default: a. The non-defaulting party may terminate the Agreement, and the termination will be effective immediately or at such other date as specified by the terminating party. b. The City may purchase the Services required under the Agreement from the open market, complete required work itself, or have it completed at the expense of Contractor. If the cost of obtaining substitute Services exceeds the contract price, the City may recover the excess cost by: (i) requiring immediate reimbursement to the City; (ii) deduction from an unpaid balance due to Contractor; (iii) collection against the proposal and/or performance security, if any; (iv) collection against liquidated damages (if applicable); or (v) a combination of the aforementioned remedies or other remedies as provided by law. Costs includes any and all, fees, and expenses incurred in obtaining substitute Services and expended in obtaining reimbursement, including, but not limited to, administrative expenses, attorneys' fees, and costs . c. The non-defaulting party will have all other rights granted under this Agreement and all rights at law or in equity that may be available to it. d. Neither party will be liable for incidental, indirect, special , or consequential damages. 18. CONTINUATION DURING DISPUTES. Contractor agrees that during any dispute between the parties, Contractor will continue to perform its obligations until the dispute is settled , instructed to cease performance by the City, enjoined or prohibited by judicial action, or otherwise required or obligated to cease performance by other provisions in this Agreement. 19. TERMINATION FOR CONVENIENCE. The City reserves the right to terminate this Agreement in part or in whole upon thirty (30) calendar days' written notice. Page 29 of 33 20. TERMINATION FOR CONFLICT OF INTEREST (A.R.S. § 38-511 ). Pursuant to A.R.S. § 38-511 , the City may cancel this Agreement within three (3) years after its execution, without penalty or further obligation, if any person significantly involved in initiating, securing, drafting , or creating the Agreement for the City becomes an employee or agent of Contractor. 21 . TERMINATION FOR NON-APPROPRIATION AND MODIFICATION FOR BUDGETARY CONSTRAINT. The City is a governmental agency which relies upon the appropriation of funds by its governing body to satisfy its obligations. If the City reasonably determines that it does not have funds to meet its obligations under this Agreement, the City will have the right to terminate the Agreement without penalty on the last day of the fiscal period for which funds were legally available. In the event of such termination, the City agrees to provide written notice of its intent to terminate thirty (30) calendar days prior to the stated termination date. 22. PAYMENT TO CONTRACTOR UPON TERMINATION. Upon termination of this Agreement, Contractor will be entitled only to payment for those Services performed up to the date of termination, and any authorized expenses already incurred up to such date of termination. The City will make final payment within thirty (30) calendar days after the City has both completed its appraisal of the Products and Services provided and received Contractor's properly prepared final invoice. Termination of this Agreement shall not affect the obligations of the City or Contractor under any existing Order issued under this Agreement, and such Order shall continue in effect as though this Agreement has not been terminated, and was still in effect with respect to such Order. 23. NON-WAIVER OF RIGHTS. There will be no waiver of any provision of this agreement unless approved in writing and signed by the waiving party. Failure or delay to exercise any rights or remedies provided herein or by law or in equity, or the acceptance of, or payment for, any Services hereunder, will not release the other party of any of the warranties or other obligations of the Agreement and will not be deemed a waiver of any such rights or remedies . 24. INDEMNIFICATION/LIABILITY. a . To the fullest extent permitted by law, Contractor agrees to defend, indemnify, and hold the City, its officers, agents, and employees, harmless from and against any and all liabilities, demands, claims, suits, losses, damages, causes of action, fines or judgments, including costs, attorneys', witnesses', and expert witnesses' fees, and expenses incident thereto, relating to, arising out of, or resulting from : (i) misconduct by Contractor personnel under this Agreement; (ii) any negligent acts, errors, mistakes or omissions by Contractor or Contractor personnel ; and (iii) Contractor or Contractor personnel's failure to comply with this Agreement. b. Contractor will update the City during the course of the litigation to timely notify the City of any issues that may involve the independent negligence of the City that is not covered by this indemnification. c. The City assumes no liability for actions of Contractor and will not indemnify or hold Contractor or any third party harmless for claims based on this Agreement or use of Contractor-provided supplies or Services. d . IN THE EVENT OF ANY LIABILITY INCURRED BY CONTRACTOR OR ANY OF ITS AFFILIATES HEREUNDER, INCLUDING INDEMNIFICATION OF CITY BY CONTRACTOR, THE ENTIRE LIABILITY OF CONTRACTOR AND ITS AFFILIATES FOR DAMAGES FROM ANY CAUSE WHATSOEVER WILL NOT EXCEED $5,000,000.00 OVER THE ENTIRE TERM OF THE AGREEMENT. 25. (RESERVED) 26. THE CITY'S RIGHT TO RECOVER AGAINST THIRD PARTIES. Contractor will do nothing to prejudice the City's right to recover against third parties for any loss, destruction, or damage to City property, and will at the City's request and expense, furnish to the City reasonable assistance and Page 30 of 33 cooperation, including assistance in the prosecution or defense of suit and the execution of instruments of assignment in favor of the City in obtaining recovery. 27. NO GUARANTEE OF WORK. Contractor acknowledges and agrees that it is not entitled to deliver any specific amount of Products or Services or any Products or Services at all under this Agreement and acknowledges and agrees that the Products or Services will be requested by the City on an as needed basis at the sole discretion of the City. Any document referencing quantities or performance frequencies represent the City's best estimate of current requirements, but will not bind the City to purchase, accept, or pay for Products or Services which exceed its actual needs . 28. OWNERSHIP. All deliverables, Services, and information provided by Contractor or the City pursuant to this Agreement (whether electronically or manually generated) including without limitation, reports, test plans, and survey results, graphics, and technical tables, originally prepared in the performance of this Agreement, are the property of the City and will not be used or released by Contractor or any other person except with prior written permission by the City. Notwithstanding the foregoing, Contractor shall retain ownership rights to (1) all of its previously existing intellectual property, including any systems, derivatives, modifications and enhancements thereto, (2) confidential information of contractor, and (3) any tools or scripting applications used, developed or created by Contractor or its third-party licensors during the performance of this Agreement. 29. USE OF NAME. Contractor will not use the name of the City of Mesa in any advertising or publicity without obtaining the prior written consent of the City. 30. PROHIBITED ACTS. Pursuant to A.RS. § 38-504, a current or former public officer or employee within the last twelve (12) months shall not represent another organization before the City on any matter for which the officer or employee was directly concerned and personally participated in during their service or employment or over which they had a substantial or material administrative discretion. Further, while employed by the City and for two (2) years thereafter, public officers or employees are prohibited from disclosing or using, without appropriate authorization, any confidential information acquired by such personnel in the course of his or her official duties at the City. 31. FOB DESTINATION FREIGHT PREPAID AND ALLOWED. All deliveries will be FOB destination freight prepaid and allowed unless otherwise agreed. 32. RISK OF LOSS. Contractor agrees to bear all risks of loss, injury, or destruction of goods or equipment incidental to providing these Services and such loss, injury, or destruction will not release Contractor from any obligation hereunder. 33. SAFEGUARDING CITY PROPERTY. Contractor will be responsible for any damage to City real property or damage or loss of City personal property when such property is the responsibility of or in the custody of Contractor or its employees. 34. WARRANTY OF RIGHTS. Contractor warrants it has title to, or the right to allow the City to use, the Products and Services being provided and that the City may use same without suit, trouble or hindrance from Contractor or third parties. 35. PROPRIETARY RIGHTS INDEMNIFICATION. Without limiting the foregoing, Contractor will without limitation, at its expense defend the City against all claims asserted by any person that anything provided by Contractor infringes a patent, copyright, trade secret or other intellectual property right and must, without limitation, pay the costs, damages and attorneys' fees awarded against the City in any such action, or pay any settlement of such action or claim . Each party agrees to notify the other promptly of any matters to which this provision may apply and to cooperate with each other in connection with such defense or settlement. If a preliminary or final judgment is obtained against the City's use or operation of the items provided by Contractor hereunder or any part thereof by reason of any alleged infringement, Contractor will, at its expense and without limitation, either: (a) modify the item so that it becomes non-infringing; (b) procure for the City the right to continue to use the item; (c) substitute for the infringing item other item(s) having at least equivalent capability; or (d) refund to the City an amount equal to the price paid, less reasonable usage, from the time of installation acceptance through cessation of use, which amount will be Page 31 of 33 calculated on a useful life not less than five (5) years, plus any additional costs the City may incur to acquire substitute Products or Services. 36. CONTRACT ADMINISTRATION. The contract will be administered by the Purchasing Administrator and/or an authorized representative from the using department. All questions regarding the contract will be referred to the administrator for resolution. Supplements may be written to the contract for the addition or deletion of Services. Payment will be negotiated and determined by the contract administrator(s). 37. FORCE MAJEURE. Failure by either party to perform its duties and obligations will be excused by unforeseeable circumstances beyond its reasonable control, including acts of nature, acts of the public enemy, riots, fire, explosion, legislation, and governmental regulation. The party whose performance is so affected will within five (5) calendar days of the unforeseeable circumstance notify the other party of all pertinent facts and identify the force majeure event. The party whose performance is so affected must also take all reasonable steps, promptly and diligently, to prevent such causes if it is feasible to do so, or to minimize or eliminate the effect thereof. The delivery or performance date will be extended for a period equal to the time lost by reason of delay, plus such additional time as may be reasonably necessary to overcome the effect of the delay, provided however, under no circumstances will delays caused by a force majeure extend beyond one hundred-twenty (120) calendar days from the scheduled delivery or completion date of a task unless agreed upon by the parties. 38. COOPERATIVE USE OF CONTRACT. This contract is available through National IPA to agencies nationwide. The City has also entered into various cooperative purchasing agreements with other Arizona government agencies, including the Strategic Alliance for Volume Expenditures (SAVE) cooperative. Under the SAVE Cooperative Purchasing Agreement, any contract may be extended for use by other municipalities, school districts and government agencies through National IPA or SAVE in the State of Arizona with the approval of Contractor. Any such usage by other entities must be in accordance with the statutes, codes, ordinances, charter and/or procurement rules and regulations of the respective government agency. A contractor, subcontractor or vendor or any employee of a contractor, subcontractor or vendor who is contracted to provide Services on a regular basis at an individual school shall obtain a valid fingerprint clearance card pursuant to title 41, chapter 12, article 3.1 . A school district governing board shall adopt policies to exempt a person from the requirements of this subsection if the person's normal job duties are not likely to result in independent access to or unsupervised contact with pupils. A school district, its governing board members, its school council members and its employees are exempt from civil liability for the consequences of adoption and implementation of policies and procedures pursuant to this subsection unless the school district, its governing board members, its school council members or its employees are guilty of gross negligence or intentional misconduct. Additionally, Contractor will comply with the governing body's fingerprinting policy of each individual school district and public entity. Contractor, subcontractors, vendors and their employees will not provide Services on school district properties until authorized by the school district. Orders placed by other agencies and payment thereof will be the sole responsibility of that agency. The City is not responsible for any disputes arising out of transactions made by others. The City is not a party to any agreements between the Contractor and National IPA , National IPA and other agencies, the Contractor and other agencies, or any third-party contracts in any way related to this Agreement or the cooperative use of this Agreement. 39. FUEL CHARGES AND PRICE INCREASES. No fuel surcharges will be accepted. No price increases will be accepted without proper request by Contractor and response by the City's Purchasing Division. 40. NOTICES. All notices to be given pursuant to this Agreement must be delivered to the parties at their respective addresses. Notices may be (i) personally delivered ; (ii) sent via certified or registered mail, postage prepaid; (iii) sent via overnight courier; or (iv) sent via email or facsimile. Page 32 of 33 If provided by personal delivery, receipt will be deemed effective upon delivery. If sent via certified or registered mail, receipt will be deemed effective three (3) calendar days after being deposited in the United States mail. If sent via overnight courier, email or facsimile, receipt will be deemed effective two (2) calendar days after the sending thereof. 41 . GOVERNING LAW, FORUM. This Agreement is governed by the laws of the State of Arizona . The exclusive forum selected for any proceeding or suit in law or equity arising from or incident to this Agreement will be Maricopa County, Arizona. 42. INTEGRATION CLAUSE. This Agreement, including all attachments and exhibits hereto, supersede all prior oral or written agreements, if any, between the parties and constitutes the entire agreement between the parties with respect to the work to be performed. 43. PROVISIONS REQUIRED BY LAW. Any provision required by law to be in this Agreement is a part of this Agreement as if fully stated in it. 44. SEVERABILITY. If any provision of this Agreement is declared void or unenforceable, such provision will be severed from this Agreement, which will otherwise remain in full force and effect. The parties will negotiate diligently in good faith for such amendment(s) of this Agreement as may be necessary to achieve the original intent of this Agreement, notwithstanding such invalidity or unenforceability. 45. SURVIVING PROVISIONS. Notwithstanding any completion, termination, or other expiration of this Agreement, all provisions which, by the terms of reasonable interpretation thereof, set forth rights and obligations that extend beyond completion, termination, or other expiration of this Agreement, will survive and remain in full force and effect. Except as specifically provided in this Agreement, completion, termination, or other expiration of this Agreement will not release any party from any liability or obligation arising prior to the date of termination. 46. A.R.S. SECTIONS 1-501 and 1-502. Pursuant to Arizona Revised Statutes Sections 1-501 and 1- 502, any person who applies to the City for a local public benefit (the definition of which includes a grant, contract or loan) must demonstrate his or her lawful presence in the United States. As the Agreement is deemed a local public benefit, if Contractor is an individual (natural) person or sole proprietorship, Contractor agrees to sign and submit the necessary documentation to prove compliance with the statutes as applicable. Page 33 of 33 OFFICE OF THE CITY CLERK COUNCIL MINUTES February 5, 2018 The City Council of the City of Mesa met in a Regular Council Meeting in the Council Chambers, 57 East 1st Street, on February 5, 2018 at 5:45 p.m. COUNCIL PRESENT COUNCIL ABSENT OFFICERS PRESENT John Giles David Luna Mark Freeman Christopher Glover Francisco Heredia Kevin Thompson Jeremy Whittaker None Christopher Brady Dee Ann Mickelsen Jim Smith Mayor’s Welcome. Invocation by Pastor Ben Diaz with Palabra de Vida (Word of Life). Pledge of Allegiance was led by Councilmember Thompson. Awards, Recognitions and Announcements. There were no awards, recognitions or announcements. 1. Take action on all consent agenda items. All items listed with an asterisk (*) will be considered as a group by the City Council and will be enacted with one motion. There will be no separate discussion of these items unless a Councilmember or citizen requests, in which event the item will be removed from the consent agenda and considered as a separate item. If a citizen wants an item removed from the consent agenda, a blue card must be completed and given to the City Clerk prior to the Council’s vote on the consent agenda. It was moved by Councilmember Thompson, seconded by Councilmember Glover, that the consent agenda items be approved. Carried unanimously. *2. Approval of minutes from previous meetings as written. Minutes from the January 8, 11, and 22, 2018 Council meetings. Regular Council Meeting February 5, 2018 Page 2 3. Take action on the following liquor license applications: *3-a. It Ain’t Chemo This is a one-day event to be held on Saturday, February 10, 2018 from 9:00 A.M. to 9:00 P.M. at Riverview Park, 2100 West Rio Salado Parkway. (District 1) *3-b. AMC Superstition East 12 A multi-screen cinema is requesting a new Series 6 Bar License for American Multi- Cinema Inc., 1935 South Signal Butte Road - Andrea Dahlman Lewkowitz, agent. There is no existing license at this location. (District 6) *3-c. ATL Wings A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant License for Stapley Wings LLC, 1455 South Stapley Drive, Suites 22-24 - Andrea Dahlman Lewkowitz, agent. The existing license held by Mark Killian, sole proprietor, will revert to the State. (District 4) *3-d. Elgin Distillery This is a one-day craft distillery festival to be held on Saturday, March 3, 2018 from 9:00 A.M. to 4:00 P.M. at Sunland Village, 4601 East Dolphin Avenue. (District 2) *3-e. Village of Elgin Winery This is a one-day wine festival event to be held on Saturday, March 3, 2018 from 9:00 A.M. to 4:00 P.M. at Sunland Village, 4601 East Dolphin Avenue. (District 2) 4. Take action on the following off-track betting license application: *4-a. Turf Paradise, TP Racing LLLP New Off-Track Betting License for Turf Paradise, TP Racing LLLP to telecast at Moose & Bear, located at 118 East McKellips Road, Suite 103, TB Concepts LLC. Applicant: Vincent Acri Francia. (District 1) 5. Take action on the following contracts: *5-a. One-Year Renewal to the Term Contract for Executive Physicals for Citywide Departments as requested by the Human Resources Department. (Citywide) This contract provides annual physicals for the City’s executive staff as a means of maintaining optimum health. There are approximately 65-70 positions eligible to participate in this program. The Human Resources Department and Purchasing recommend authorizing the renewal contract with Banner Occupational Health Clinics, at $88,500, based on estimated usage. Regular Council Meeting February 5, 2018 Page 3 *5-b. One-Year Renewal to the Term Contract for Deceased Animal Collection Services for the Community Services Department. (Citywide) This contract provides a vendor to collect and dispose of deceased animals up to 150 pounds that are reported within the City. The contractor is responsible for the proper disposal by cremation or other means in accordance with the standards and methods approved by the Maricopa County Health Department. The Community Services Department and Purchasing recommend authorizing the renewal contract with APM/Couts Enterprises, Inc., dba Arizona Pet Mortuary, at $54,000, based on estimated usage. *5-c. Purchase of One Replacement Fire Apparatus, an Air Light/Rehab Unit, for the Fire and Medical Department (Sole Source). (Citywide) The apparatus being replaced has met established replacement criteria and will be sold by a sealed bid process or traded-in as part of the City's fire apparatus purchase agreement with Pierce Manufacturing. In addition, Fire and Medical will trade-in two units to further offset the price for the Air/Light Rehab unit. The Fire and Medical Department and Purchasing recommend authorizing the purchase using the City’s five-year purchase agreement with Pierce Manufacturing Inc., through their designated local dealer, Hughes Fire Equipment Inc., at $502,264.75. This purchase is funded by the Capital-General Fund and authorized 2013 Public Safety Bonds. *5-d. Three-Year Term Contract for Landscape Maintenance Services for Parks, Retention Basins and Sports Fields - Zones 1, 2, 3 and 4 for the Parks, Recreation and Community Facilities Department (PRCF). (Citywide) These contracts provide landscape maintenance services for sports fields, parkways, medians, parks, retention basins or grounds adjacent to City facilities. The City has divided the landscaping into geographic areas known as Zones 1, 2, 3 and 4. PRCF has done an analysis to bring the work under this contract in-house and, at this time, contracting continues to be in the best financial interest of the City. The evaluation committee recommends awarding the contract to the highest-scored proposal from Mariposa Landscape Arizona, Inc.; Zone 1, at $1,435,319.57 annually; Zone 2, at $959,183.45 annually; Zone 3, at $974,364.20 annually; and Zone 4, at $1,221,738.22 annually; based on estimated usage. *5-e. Three-Year Term Contract for Plumbing Services for the Parks, Recreation and Community Facilities Department. (Citywide) This contract will establish a list of pre-qualified plumbing contractors to perform plumbing services on various City facilities/projects on an as-needed basis. The evaluation committee recommends awarding the contract to the four, highest-scored proposals from Mesa Energy Systems Inc.; RKS Plumbing and Mechanical Inc.; Sun Mechanical Inc.; and W.D. Manor Mechanical Contractors, Inc.; cumulatively not to exceed $100,000 annually, based on estimated usage. Regular Council Meeting February 5, 2018 Page 4 *5-f. Purchase of Furniture for the Main Library as requested by the Library Services Department. (Citywide) This purchase will provide seating and tables for two new rooms at the Main Library, Teen Room and ThinkSpot. The Library worked with several vendors utilizing cooperative contracts specifying their needs and goals with this project. The Library Services Department and Purchasing recommend authorizing the purchase using the Northern Arizona University cooperative contract with Atmosphere Commercial Interiors, at $50,876.25. *5-g. Five-Year Term Contract with CDW Government, LLC and SHI International Corp. for Information Technology Solutions and Services for Various Departments throughout the City. (Citywide) This contract will provide the City and participating agencies a full range of information technology solution products and services to meet varying requirements of governmental agencies. The scope of products and services available under these contracts include standard business and high-end workstations; laptop and notebook computers; network equipment; computer and network products and peripherals; monitors; various cloud, consulting, and technical support services; financing; various software products; and the contractors' comprehensive product offering. Mesa, as the lead agency, has partnered with the National Intergovernmental Purchasing Alliance Company (National IPA) to lead this contract. The contract will be available to over 45,000 public agencies nationally. While no minimum volume is guaranteed to the suppliers, the estimated annual volume of IT Solutions purchased under this master agreement is approximately $500 million per year. The City will receive rebates annually for administering and awarding this contract. A committee representing the Police, and Information Technology Departments, City Manager’s Office, Police-Information Technology, National IPA and Purchasing evaluated responses. The evaluation committee recommends awarding the contract to the highest-scored proposals from CDW Government, LLC and SHI International Corp., at $3,100,000 annually, based on estimated usage. *5-h. One-Year Term Contract for Electrical and Lighting Supplies for the Materials and Supply Warehouse (for Citywide Departments). (Citywide) Multiple departments use this Citywide contract for their miscellaneous electrical equipment and supplies. The Business Services Department and Purchasing recommend authorizing the purchase using the State of Arizona cooperative contract with Border States Industries, Inc., at $100,000, based on estimated usage. *5-i. Re-Award the Three-Year Term Contract for Microfilm Conversion Services for the Police Department. (Citywide) This contract will provide services to convert Police Department data from microfilm to digital media. Police, Records Division use microfilm that is becoming worn and damaged. The previous vendor is unable to satisfactorily fulfill the contract requirements. Regular Council Meeting February 5, 2018 Page 5 The Police Department and Purchasing recommend re-awarding the contract to the second highest scored proposal, ICM Conversions, at $400,000 annually, based on estimated usage. *5-j. Purchase of Falcon District Brand Signage as requested by the Economic Development Department. (Citywide) Continuing to build awareness and to promote the Falcon Field Economic Activity Area, this purchase for the Falcon District signage includes the installation of two branded monument signs to be located on Greenfield and Higley Roads, south of the 202. Additionally, the City will install utility and transit signal box wraps and will mount branded banners promoting aerospace, technology, and manufacturing on light poles around the airport. The Economic Development Department and Purchasing recommend authorizing the purchase using the City of Peoria cooperative contract with YESCO Phoenix, at $146,670.49. This purchase is funded by Local Streets Sales Tax. *5-k. Purchase of Three Replacement Rollback Trailers for the Transportation Department. (Citywide) These trailers will replace three aging equipment trailers that are at the end of their service life. The trailers will meet the needs and safety requirements for transporting the large equipment required to perform street and right-of-way maintenance. The Transportation Department and Purchasing recommend authorizing the purchase using the National Joint Powers Alliance contract with Empire Southwest (a Mesa business), at $176,764.77. This purchase is funded by Local Streets Sales Tax. *5-l. One-Year Renewal to the Term Contract for Radio-Based Endpoint Encoders (for Water Meter Reading) for the Water Resources Department. (Citywide) This contract provides Itron radio-based endpoint encoders and accessories purchased directly from Itron, Inc., the manufacturer. The endpoint stores 40 days of hourly reads to ensure data integrity and offers advanced customer side leak detection and reverse flow and tamper alarms. Water Utility installs approximately 540 radio-based endpoint encoders on new and existing meters annually. The Water Resources Department and Purchasing recommend authorizing the renewal with Itron, Inc., at $100,000, based on estimated usage. *5-m. Purchase of Water Treatment Plant Shop Tools and Equipment for the New Signal Butte Water Treatment Plant as requested by the Water Resources Department. (Citywide) This purchase is for tools and equipment needed for the start-up and maintenance in the various shops at the new Signal Butte Water Treatment Plant. The Water Resources Department and Purchasing recommend awarding the contract to the lowest, responsive and responsible bidders: Copper State Bolt & Nut Co. (a Mesa business); Glendale Industrial Supply, LLC, dba UNICOA Construction and Industrial Supply; Mallory Safety & Supply LLC; and W.W. Grainger, Inc.; cumulatively not to exceed $153,000, based on estimated usage. Regular Council Meeting February 5, 2018 Page 6 *5-n. One-Year Renewal to the Term Contract for Fire Hydrant Water Meters for the Water Resources Department. (Citywide) This contract provides 3” fire hydrant water meters to accurately measure construction water use of fire hydrants. The meters are installed by Water Utility staff to serve contractors and other customers needing to connect to City fire hydrants for temporary construction water service and dust control purposes. The Water Resources Department and Purchasing recommend authorizing the renewal with Badger Meter Inc., dba National Meter Automation, at $35,000, based on estimated usage. *5-o. Greenfield Water Reclamation Plant (GWRP), Phase III Expansion Guaranteed Maximum Price (GMP) No. 2. (Citywide) The City of Mesa, Town of Gilbert, and Town of Queen Creek seek to provide an additional 14 million gallons per day annual average day flow of liquids and solids treatment capacity at the existing GWRP, complete with the required infrastructure, technology, and environmental features to ensure a reliable, efficient, and expanded plant to meet the current and future demands. Staff recommends awarding the contract for the completion of this project to McCarthy Building Companies in the amount of $120,302,333 and authorize a change order allowance $6,015,117 (5%) for a total project amount of $126,317,450. This project is funded by the Greenfield Water Reclamation Plant Joint Venture Fund, with contributions coming from its members based on usage. Mesa’s portion of this GMP is $72,229,521 and is funded by 2014 authorized Wastewater Bonds. *5-p. Sewer Pipe and Manhole Rehabilitation: Mesa Drive, Millet Avenue, Horne, and 6th Avenue. (District 4) The existing sanitary sewer lines covered by this project were built during the 1950’s and 1960’s. The age of these pipes greatly increases their risk of failure and emergency repairs. This method of construction can be completed while leaving the pipe in place and without excavation. Similarly, the sewer manholes will be cleaned, repaired, and coated in place. Only the concrete adjustment rings will be removed and replaced. Staff recommends awarding the contract for this project to the lowest, responsible bidder, B and F Contracting, Inc, in the amount of $1,394,294.67, and authorize a change order allowance in the amount of $139,430 (10%), for a total amount of $1,533,724.67. Funding for this project is available from the 2014 Wastewater Bond Program. *5-q. Sidewalks at Railroad Crossing on Alma School. (Districts 3 and 4) To continue to meet current railroad approach and clearance standards at the Alma School Road railroad crossing, additional safety improvements will need to be made. The project improvements for roadway and sidewalk approach at this location will facilitate greater public safety and needed clearances from railroad signals along with a smoother roadway crossing of the Union Pacific Railroad track. Mesa will participate in the federally-funded Railway-Highway Grade Crossing Program, and will be responsible Regular Council Meeting February 5, 2018 Page 7 for adjusting the existing concrete sidewalks around the proposed cantilevers and gates, and installing concrete medians. This project was previously awarded by Council on July 10, 2017, however, the previously selected contractor could not comply with the federal requirements and the project was released for bid a second time. Staff recommends awarding the contract to the lowest, responsible bidder, AJP Electric, in the amount of $149,494, plus an additional $14,949 (10%) as a change order allowance, for a total amount of $164,443. Funding is available from the Local Streets Sales Tax, of which 94.3% will be reimbursed by Arizona Department of Transportation (Federal) Grant under the Railway-Highway Grade Crossing. 6. Take action on the following resolutions: *6-a. Approving and authorizing the City Manager to submit the Second Substantial Amendment to the Fiscal Year 2017/2018 Annual Action Plan to the U.S. Department of Housing and Urban Development related to the allocation of funding obtained under the Community Development Block Grant (CDBG) program. This Amendment will allow for reallocation of $600,000 in CDBG funds from the Senior Center Renovation Project (247 North Macdonald) to the Eagles Park Project (828 East Broadway Road). (District 4) – Resolution No. 11088. *6-b. Approving and authorizing the City Manager to enter into a Grant Agreement with the Arizona Department of Public Safety to accept $1,335,284 in Victims of Crime Act (VOCA) grant funds. The finding will be used for salaries and expenses for the Mesa Prosecutors Office, Victim Services Unit for a three-year period. (Citywide) – Resolution No. 11089. *6-c. Approving and authorizing the City Manager to enter into a Lease Agreement with New Cingular Wireless PCS for a cellular site on a portion of 5950 East Virginia Street, also known as Mesa Fire Station 214. (District 5) – Resolution No. 11090. *6-d. Approving and authorizing the City Manager to enter into a Development Agreement for City-Share Reimbursement with PPGN-Ray, LLLP, for the reimbursement of $100,568 for regional street and street lighting improvements that are being required by the City in conjunction with a proposed residential development known as Crismon Road at PPGN, located at 5461 South Ellsworth Road. (District 6) – Resolution No. 11091. *6-e. Approving and authorizing the City Manager to enter into an Intergovernmental Agreement with the Maricopa County, Department of Transportation for the pavement rehabilitation of Adobe Road from Higley Road to Recker Road. The City will contribute an estimated $54,417 for the portion of the project that is within City boundaries that will be funded from the 2013 Streets Bond Program. (District 5) – Resolution No. 11092. *6-f. Approving and authorizing the City Manager to enter into First Amendments to the Development Agreement, Ground and Air Lease, and License Agreement with 3W Management, LLC, to facilitate the development of, and job creation and retention at, the City-owned property generally located at the southwest corner of Main Street and South Pomeroy and 34 South Pomeroy, which is the development commonly known as The GRID. (District 4) – Resolution No. 11093. Regular Council Meeting February 5, 2018 Page 8 7. Introduction of the following ordinance and setting February 26, 2018 as the date of the public hearing on this ordinance: *7-a. ZON17-00323 (District 5) The 8800 to 8900 blocks of East Main Street (south side). Located west of Red Mountain Freeway on the south side of Main Street (16.4± acres). Rezoning from RS-43 and GC to GC-PAD; and Site Plan Review. This request will allow for the development of an RV dealership and storage facility. Jeff Welker, Welker Development Resources, applicant; Roger D. Overson, owner. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 6-0) 8. Discuss, receive public comment, and take action on the following ordinances: *8-a. ZON17-00309 (District 2) The 5200 block of East Inverness Avenue (south side). Located east of Higley Road south of the US60 Freeway (1.9 ± acres). Rezoning from RM-3-PAD to LC; and Site Plan Review. This request will allow for the development of a commercial building. John Schoenauer, HD Management, applicant; Sevilla, LLC, owner. – Ordinance No. 5419. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 7-0) *8-b. ZON17-00283 (District 6) The 7100 to 7300 blocks of East Ray Road (north side). Located east of Power Road on the north side of Ray Road (56.0± acres). Rezone from LI-AF to LI-AF-PAD. This request will allow for the development of an industrial subdivision. Omar Cervantes, XCL Engineering, LLC, applicant; Phx-Mesa Gateway Airport 193, LLC, owner. – Ordinance No. 5420. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 7-0) *8-c. ZON17-00432 (District 3) The 800 and 900 blocks of West Southern Avenue (south side), the 1200 and 1300 blocks of South Extension Road (west side), and the 800 and 900 blocks of West Grove Avenue (north side). Located at the southwest corner of Southern Avenue and Extension Road (19.3 ± acres). PAD Amendment; Site Plan Modification. This request will allow the development of a new multiple-residence building in an existing multiple-residence complex. Reese Anderson, Pew and Lake, PLC, applicant; Edward B. Frankel, Trustee of the Frankel Family Trust, owner. – Ordinance No. 5421. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 7-0) 9. Take action on the following subdivision plat: *9-a. "Allred Ranch" (District 2) The 2900 to 3100 blocks of East Southern Avenue (north side), and the 900 to 1200 blocks of South Los Alamos (west side). Located east of Regular Council Meeting February 5, 2018 Page9 Lindsay Road on the north side of Southern Avenue. 108 RSL-4.5 PAD lots (25± acres). KB Home Phoenix, Inc., developer; Dan Auxier, EPS Group, engineer. Items not on the Consent Agenda 10. Items from citizens present. There were no items from citizens present. 11. Adjournment. Without objection, the Regular Council Meeting adjourned at 5:57 p.m. ATTEST: DEE ANN MICKELSEN, CITY CLERK ~ ~AYOR I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Council Meeting of the City Council of Mesa, Arizona, held on the 5th day of February, 2018. I further certify that the meeting was duly called and held and that a quorum was present. DEE ANN MICKELSEN, CITY CLERK js                                              National Cooperative  Contract  National Intergovernmental Purchasing  Alliance Company  Information Technology Solutions    1       October 23, 2017  National IPA  City of Mesa  702 Capitol Avenue, Room 095  Frankfort KY 40601  Dear Ms. Williams:  Thank you for providing SHI the opportunity to participate in the City of Mesa’s Request for Proposal for  Information Technology Solutions and Services.   Before you read our response, please know that the soul of our company is supported by thousands of  empowered employees who work together to determine the best course of action for our customers.  We are a privately‐owned company, and as such, our customers are our most valued shareholders. We  are honored to have the opportunity to work with the City of Mesa.  We have been pleased to work with  the City for your software needs and other IT purchases over the last 6 years, and we will work diligently  to ensure that this long‐term relationship continues to provide value for you.   SHI prides ourselves on being honest and transparent with our customers especially when it comes to  pricing. We base our discount structure on SHI Advertised Price as this is a verifiable source.  We do not  inflate this Advertised Price for RFPs in order to make our discounts appear larger. Other vendors may  use MSRP or Publisher List price, which can be unreliable as a pricelist may not exist for every product, a  pricelist can change from day to day, and a pricelist can be inconsistent depending on where you source  the information from. When a vendor manipulates contract language in this manner or uses a loose  definition of cost, it results in an increase in profit for them and higher prices for customers.   If awarded, SHI is willing to provide complete transparency over the life of the contract as it  relates to our costs and what we charge National IPA customers.  In response to your bid requirements, we have provided our cost response under separate cover. If you  have any questions regarding our response, please feel free to contact me or any of your SHI Team  Members, introduced in our Letter of Transmittal.  Thank you again.    Sincerely,    Meghan Flisakowski  Public Program Manager     Table of Contents  TAB 1 ‐ Letter of Transmittal. ........................................................................................................................ 3  TAB 2 ‐ Program Description AND Method of Approach. ............................................................................. 6  Attachment D ‐ Supplier Qualifications .................................................................................................... 6  Company ................................................................................................................................................... 6  Distribution, Logistics .............................................................................................................................. 13  Marketing and Sales ................................................................................................................................ 18  TAB 3 ‐ Pricing Forms. .............................................................................................................................. 61  TAB 4 ‐ Qualifications. (Abilities, Experience and Expertise). ..................................................................... 62  TAB 5 – Technology. .................................................................................................................................... 73  TAB 6 ‐ Other Forms. ............................................................................................................................... 95  Attachments ................................................................................................................................................ 96  D&B Report ............................................................................................................................................. 96  Partners ................................................................................................................................................... 97         3     TAB 1 ‐ LETTER OF TRANSMITTAL.   A brief letter of transmittal should be submitted that includes the following information: 1. The Respondent’s understanding of the work to be performed. 2. A positive commitment to perform the service within the time period specified. 3. The names of key persons, representatives, project managers who will be the main contacts for the City regarding this Solicitation. SHI Response:  SHI thanks you for the opportunity to participate in The City of Mesa’s/National IPA’s solicitation for  Information Technology Solutions and Services. We are confident that our deep commitment to those  we serve will prove a strong foundation on which the City of Mesa, National IPA, and SHI can build. We  clearly understand the scope of work to be performed and, in the following pages, have provided a  complete solution to your specific request, including:    A detailed account of SHI’s national presence and our strategy for educating our national sales  force about the contract;   A clear explanation of how products and services will be distributed to various locations  throughout the City and marketed nationwide;    An articulated plan describing how volume will be tracked and reported to National IPA;   Detailed descriptions of product lines and services for City of Mesa and provided by SHI.  SHI’s Commitment to City of Mesa  We are positively committed to perform successfully the services requested for an initial five year term  from January 1, 2018 to December 31, 2022. SHI is proud to be ranked 9th on CRN’s Solution Provider  500 list of North American IT solution providers – a ranking that stems in part from our long‐standing,  excellent relationships with our customers and partners. Founded in 1989, SHI has cultivated an expert  team that works collaboratively to ensure programs and projects are delivered on time, on budget, and  far above expectations. With over 3,500 employees worldwide, including an organization dedicated  specifically to the needs of the public sector, SHI is the largest Minority and Woman Owned Business  Enterprise (MWBE) in the United States. Our individual team members, dedicated to working for City of  Mesa and National IPA, are what make SHI an exceptional choice for your Information and Technology  Solutions and Services; your account team, which will stay loyally engaged with the City of Mesa and  National IPA, is detailed below.   SHI’s Team Approach  Putting our people in place to support the City of Mesa and National IPA is where we start.  We believe  that our team members must be empowered and have autonomy to respond to your requests.   Additionally, we have ensured that your SHI support team has the training and resources they need to  provide you with immediate, accurate, up‐to‐date information and the authority to take action for you  whenever you need.  SHI has experienced tremendous growth in size and scope in response to our customers' expanding  needs. Our organic growth, in conjunction with over two decades of stability, is successful because we     4     support a highly‐skilled and tenured sales force with software‐volume licensing experts, hardware  procurement specialists, and certified IT services professionals.     As SHI has grown, we have retained the flexibility we are known for, in order to remain agile for our  customers. For instance, we have few layers of management and empower our sales teams to make  decisions that are in the best interest of their customers.  The City of Mesa will have the support of the entire SHI team:  Denise Verdicchio: Senior Director of Public Sector Sales. Denise has been an essential  team member with SHI since 1995. As Senior Director of Public Sector Sales, Denise  provides in‐person client support and directly supports her team in the public sector; she  has executive authority to approve terms and resolve issues and responds to inquiries  within 8 business hours.   Alison Turner: Regional Director, Public Sector West. Alison coordinates the efforts of the  Account Team in direct support of the City of Mesa and is the point of contact for any  issues that arise and need escalation. With over 20 years in the industry, and with  experience working in Education and Government during that time, Alison has the  expertise and customer focus necessary to implement an exceptional Information and  Technology Solutions and Services contract for the city. Alison will respond to inquiries within 8 business  hours.  Amelia Jakubczyk: Account Executive. Amelia develops relationships with representatives  throughout City of Mesa in support of all the city’s IT needs. Amelia will conduct face‐to‐ face meetings to understand the city’s needs; will establish a customized service and  support plan; and will construct a pricing strategy critical to the city’s development.  Amelia will respond to inquiries for resolution within 4 business hours; she has worked in  this area and specifically with the City of Mesa for over 5 years and is excited to work with the city on  this new endeavor!  Scott Garret: Contract Manager. Scott works closely with Amelia and the sales teams to  ensure the sales teams are fully educated on the guidelines of the City of Mesa and IPA  contract, including the reporting requirements. Scott will also work with the City and IPA  to ensure we are providing necessary reports, accurately capturing the requested  information, and to assist with any other contract‐related requirements.    Inside Account Managers (IAM)—In partnership with the Account Executives in the field, our IAMs  maintain direct relationships with you and have the responsibility of ensuring customer  satisfaction.  Functional areas such as pricing, availability, order entry, tracking, returns, product  information, and expedites are an integral part of their daily activities.  IAMs execute the plan  established by the Account Executives for City of Mesa.  We will evaluate the team regularly and add  members as needed to ensure exceptional customer service. The City of Mesa’s dedicated Inside  Account Manager Team consists of the following members:       5     Corrin Bennett (Inside Team Manager)       Phone: 732‐652‐0335  Fax: 732‐564‐8332  Rob DiGiovanni  Phone: 732‐652‐7408  Fax: 732‐537‐7287  EJ Williams  Phone: 732‐652‐6596  Fax: 732‐537‐7287  Jason Mitchell  Phone: 732‐652‐4710  Fax: 732‐537‐7287  Team Alias:  teamarizona@shi.com  Detailed information on our national presence and how we will support National IPA members across  the country are included in our response.  SHI has had the pleasure of serving the City’s software and product needs since 2011. Our relationship  with the City began with the award of the previous WSCA SVAR Contract and has continued since using  other cooperative contracts. SHI’s value to the City comes from our extensive expertise in understanding  complex licensing, determining the best products for the City’s needs, customer service and overall ease  of use. To date the City has spent $6.6m with SHI, mostly in software and other miscellaneous products.   Thank you again for the opportunity to show you why SHI is the best partner for City of Mesa and  National IPA; we are eager to present our proposal to you, and we are confident that both the quality  of our services outlined in our response and the deep level of our commitment to City of Mesa and  National IPA will make us a convincing partner for your Information Technology Solutions and Services  needs. We look forward to continuing to build upon our strong and successful relationship with the  City of Mesa.        6     TAB 2 ‐ PROGRAM DESCRIPTION AND METHOD OF  APPROACH.    Clearly define the services/materials offered and Respondent’s method of approach to including, but not limited, to the following criteria: 1. Provide a response to the national program. a. Include a detailed response to Attachment D, Exhibit A, National IPA Response for National Cooperative contract. Responses should demonstrate a strong national presence, describe how offeror will educate its national sales force about the contract, describe how products and services will be distributed nationwide, include a plan for marketing the products and services nationwide, and describe how volume will be tracked and reported to National IPA. b. The successful offeror will be required to sign Attachment D, Exhibit B, National IPA Administration Agreement. Offerors should have any reviews required to sign the document prior to submitting a response. Offeror’s response should include any proposed exceptions to the National IPA Administration Agreement. SHI Response:  Immediately following is the response to Attachment D, Exhibit A and Attachment D, Exhibit B. SHI  acknowledges the requirement to sign Attachment D if awarded the contract. We have provided our  clarifications to terms and look forward to the opportunity to review and negotiate a mutually agreeable  contract.  ATTACHMENT D ‐ SUPPLIER QUALIFICATIONS  COMPANY  A. Brief history and description of your company. B. Total number and location of sales persons employed by your company. C. Number and location of support centers (if applicable). D. Annual sales for the three previous fiscal years. E. Submit your FEIN and Dunn & Bradstreet report. SHI Response:  Founded in 1989, SHI International Corp. is a global provider of technology products and services. Over  the past 28 years, SHI has evolved from a $1 million “software‐only” regional reseller into a global, full  lifecycle provider of technology, services, and solutions. SHI is ranked 9th among CRN's Solution Provider  500 list of North American IT solution providers. With over 3,500 employees worldwide, SHI is the  largest Minority and Woman Owned Business Enterprise (MWBE) in the United States.  SHI International Corp. is headquartered in Somerset, New Jersey and has 30+ offices worldwide.  As a  privately held company, we have remained under the same ownership since 1989, and most Vice  Presidents and Managers have been dedicated to SHI for more than 15 years.       7     SHI has been focusing on the specific needs of our Public Sector customers for over 20 years.  Our first  state‐wide contract was awarded in 1994; since then we have continued to build and focus on the  specific needs of public sector customers.   Today our Public Sector business unit consists of over 300 team members who are dedicated specifically  to public entities across the country, allowing SHI to build connections and partnerships with each entity  and to dive deeply into the infrastructure, procurement, and regulation obstacles that they face. For  2016 SHI reported earnings of $7.5B, which demonstrates 15% growth over 2015.  We are projecting  earnings of $8.2B for 2017 continuing to show substantial YoY growth.  SHI has a financially strong and  stable business model that has proven itself over time. Providing a compelling value to our entire  customer base, SHI is able to offer the most advantageous pricing models of our top 4 competitors,  while simultaneously maintaining our profitability with the lowest overhead cost structure in the  industry.   Our breadth and depth of experience on Public Sector contracts of similar size and scope position us  well for success as a partner with National IPA and the City of Mesa. Specifically for this contract, we are  prepared to:    Provide value by delivering an extensive catalog of items in each category accurately and  efficiently;   Offer consistent, aggressive pricing and world‐class support to public entities regardless of size;   Collaborate with National IPA to market this contract to public entities across the country.    With 28 years of experience supporting contracts that are similar in nature, complexity, responsibility,  and scope to National IPA’s request, we are ready to deliver on all of these requirements and more.  SHI  is able to provide our customers with full IT solutions, from commodity software and hardware to full  end‐to‐end datacenter solutions.  SHI offers a wealth of products, services, and resources which are all  specifically in line with the requirements of this contract.  This is, at our core, what we do – and the  reason we will excel in the fulfillment of this contract more than other organizations who might have  diverted focus.  National IPA and City of Mesa users will benefit from SHI’s laser focus on being the best  at delivering the products and services they need, while continuing to keep our costs aggressive.  A  dedicated approach to the Public Sector business for the last twenty years has helped us to create  solutions that are specific to the unique needs of State, Local, and Education customers across the  country.  We work constantly to understand your business and personnel and to stay current with your  unique, evolving challenges.  Company Structure and Organization  SHI has experienced tremendous growth in size and scope due to our customers' expanding needs. Our  organic growth and over two decades of stability are a direct result of backing a highly‐skilled and  tenured sales force with software volume licensing experts, hardware procurement specialists and  certified IT services professionals.     In terms of organization, we have retained a small business feel in order to remain agile for our  customers. We have few layers of management and empower our sales teams to make decisions that  are in the best interest of their customers.        8     To ensure that we are meeting the needs of all Public entities, we have split our Public Sector business  unit into three divisions:   Public Sector Field   SM Sled    Federal  Public Sector Field  The Public Sector field organization supports State Government, Local Government, K‐12, Higher Ed, and  Public Healthcare entities across the country.  Our sales teams are regionally aligned in order to provide  local focus; subsequently, our Account Executives are able to live where they work.  Each region is  managed by a regional director who lives in that region.   Customers are supported by an Account Executive and a dedicated Inside Sales Team. Field territories  are structured vertically and by geography.  We have over 120 Account Executives (AEs) who live and  work in their territories.  Their emphasis is to be face‐to‐face with their customers as frequently as  possible. We are in the process of expanding our field Account Executive team to ensure that each AE is  focused on 25 accounts or less and in one specific vertical.  This will enable us to continue to cater to the  individualized needs of our customers.   Each Account Executive is supported by a team of Inside Account Mangers (IAMs).  This group, totaling  over 150 professionals, is located in our global headquarters in Somerset, NJ.  This team is also aligned  to match specific regions so that everyone who is working with you will have sensitive knowledge of  National IPA member’s regional environment and the nuances associated there. They are responsible  for the day‐to‐day customer service questions such as order placement, order tracking, quotations,  return authorizations, and product information.  SHI provides a comprehensive customer support plan to ensure we are meeting each customer’s needs.   SHI’s Account Executives are empowered to make decisions around the support of their customers, and  they have the autonomy to resolve issues as they arise.  Because our Account Executives are  accountable and responsible for ensuring customer satisfaction, SHI is able to provide high quality  customer service and ensure efficient and effective response to questions and issues. In addition, the  SHI Regional Directors are engaged with the account teams to provide executive level support and to  meet with customers as needed.  SHI believes in regular and transparent communication with our customers.  SHI Account Executives  meet with the participating entities and individual contract users to review their business with SHI.   During these review meetings, we discuss purchase history, as well as the customer’s future plans.  With  open discussions, SHI can provide tremendous value in supporting future initiatives and will engage the  support teams as needed to meet the customer’s goals and objectives. If awarded, SHI will provide this  level of service for all entities that use this contract to procure IT products, regardless of size.     9       SM Sled  The Small/Medium Sled division is focused on supporting the needs of the smaller K‐12, local  government, and higher education institutions across the country to ensure personalized attention  regardless of customer’s size. In this case, we have defined small as a K‐12 district with 7500 Students or  less, a higher‐ed institution with 1500 students or less, or a city/town with 50,000 population count or  less.  These customers often are overlooked by large resellers yet have the same need to stay current  with technology as their larger counterparts. SM Sled is based out of our global headquarters in  Somerset, NJ and consists of a team of 170 Inside Account Executives (IAEs) who support their  customers’ needs from start to finish. They are organized into the same six regions as the field team and  both a manager and a team lead support each region.        10          11       Sales Support Organizations  SHI has the largest team of Software and Licensing Specialists in the industry who are prepared to  support our customers and our sales teams in whatever manner possible. SHI has the expertise in  managing the varied features of the Publisher Licensing Programs; our award‐winning team of Software  and Licensing Specialists is available to assist you with selecting your licensing programs, executing the  agreements, and supporting the agreement lifecycle.  Today SHI has dedicated teams that support 38 Strategic Software Partners and over 70 Emerging  Technology Partners.  Over the past decade, IT has changed. Although there is still a need for commodity products, attention  has turned more and more to building solutions that will solve customers’ needs. In response to this,  and working within our customer‐centered foundation, we developed our Enterprise Solutions Group to  include solution based support. This team has over 150 people who hold 3000+ certifications for various  products and solutions. Their goal is to help address our customers’ needs, acquire the right technology,  and adopt that technology into their environment to achieve the desired outcomes. This team can bring  together resources to talk across an entire solution whether that be end user, datacenter, or security.     These teams are vendor‐neutral and use their breadth of experience to help tailor conversations that  will be optimal for a customers’ specific environment. We engage our customers during the strategy and  solution design phases of a project and assist with activities like strategic planning, assessments, white     12     boarding, proof of concepts, and obtaining demo units.   Initiating conversations at this point in the  conversation leads to a more optimized project and cost savings.    Annual Sales   2014 2015 2016  2017 YTD  K‐12 (public &  private), Educational  Service Agencies  160,000,000 200,000,000    232,000,000 203,000,000  Higher Education  Institutions  190,000,000 245,000,000 249,000,000 222,000,000  Counties, Cities,  Townships, Villages  345,000,000 400,000,000 465,000,000 354,000,000  States 530,000,000 600,000,000 674,000,000 530,000,000  Private Sector 4,640,000,000 5,211,000,000 5,821,000,000 4,680,000,000  Total 5,865,000,000 6,656,000,000 7,441,000,000 5,989,000,000    FEIN and D&B  SHI FEIN: 22‐3009648     13     D&B Number:  61‐142‐9481 – SHI has included a copy of our D&B report as an Attachment to this  response.  DISTRIBUTION, LOGISTICS  A. Describe how your company proposes to distribute the products/service nationwide. B. Identify all other companies that will be involved in processing, handling or shipping the products/service to the end user. C. Provide the number, size and location of your company’s distribution facilities, warehouses and retail network as applicable. D. State any return and restocking policy and fees, if applicable, associated with returns. E. Describe the full line of products and services offered by your company. SHI Response:  SHI is proud of our tremendous network of distributors and partners. We maintain relationships with  our large IT Distributors (Ingram Micro, Tech Data, and Synnex), as well as smaller, local distributors, and  the manufacturers directly. With each transaction, we source from the supplier with inventory in the  closest proximity to the customer and drop ship directly to their door. Most products are delivered  within 3‐5 business days via UPS Ground.  Our extensive network allows reduced time to market for National IPA members and prospective  members. In addition, we have our own integration center located in New Jersey that can provide  warehousing and complete configuration capabilities when such a solution best meets your needs. Of  course, we always take the opportunity to find cost savings for our customers – and National IPA is no  different. In addition to leveraging our partner relationships for savings at the vision and design phases  of an IT project, when quoting and sourcing product, our sales teams also request information from all  of our distributors’ stock to obtain the best price for the National IPA member. In addition, we have  sourcing specialists on our procurement team who monitor purchase orders with the partner and  distributor community to ensure that no savings opportunities have been missed. In many instances, our  sourcing specialists have the ability to aggregate purchases for a specific partner or product across  multiple transactions or even multiple customers to realize a lower overall cost.   While SHI does maintain a warehouse/integration center in Somerset, New Jersey, it is our relationships  with our major distributors that allow us to provide for efficient product delivery across the United  States.  This model reduces the overhead costs of maintaining our own additional warehouses.  Our  distribution model is important to SHI’s own internal cost structure and allows us to offer our customers  a very aggressive pricing model.  Our major distribution centers are located in:   Atlanta, GA   Chicago, IL   Dallas, TX   Fontana, CA   Fort Worth, TX   Jonestown, PA   Swedesboro, NJ   Los Angeles, CA   Memphis, TN   Miami, FL   Ontario, CA   South Bend, IN   Suwanee, GA         14     SHI receives electronic feeds from these major distributors as well as the top publishers/OEMs in the  industry. We include advertised list price in our catalog and have based our discounts off of this pricing.  All products will be offered to National IPA members at or below bid pricing for the life of the contract.  SHI’s return policy is customer‐centered – we will accept any request to return any unopened box up to  30 days after receipt, unless the manufacturer specifically has a no returns policy, in which case we note  this to the customer. In order to request a return, a customer first contacts the customer’s dedicated  sales team, via email, phone, or through the “Request Return Authorization Number” section on the  customer/SHI.com website. Your Inside Account Manager then generates a return authorization (RMA)  number and provides that to you with a shipping label or account number. Finally, the IPA customer  writes the RMA number on their return box, ships it to SHI, and we process the return. In some cases, to  expedite a return, SHI will arrange to have the return‐product picked up directly.   Once SHI receives the return, we will credit the customer’s invoice. If you request a replacement order,  we work with you to expedite a replacement even before we receive the return.    Occasionally, Software Publishers may require a customer to fill out a letter of destruction. In these  cases, SHI provides the form to the customer, who signs and returns the form. To help simplify and  expedite the process, SHI takes care of the rest – processing the letter of destruction with the Software  Publisher.   Rarely, a customer might receive an incorrect or damaged product; if this occurs, SHI accepts return of  that product within 30 days, with no restocking fees, regardless of the package being opened.   At any point, if customers encounter issues with their products, the SHI Account Team is accessible and  eager to help!  SHI has a diversified product line that includes a broad range of computer products and services.   Leading manufacturers have established SHI as an authorized partner.  If awarded, National IPA contract  users will benefit from having access to one of the most extensive IT product catalogs in the industry.   The following lists contain a snapshot of some of the manufacturers whose products SHI is authorized to  sell. If, by chance, we are not authorized for a specific product line that is of interest to a member, we  will work with the manufacturer to become authorized. Upon award, we will work with National IPA to  create a catalog inclusive of all products/partners that you would like to include.     15                16            17       Sourcing Non‐Standard Products  SHI is committed to sourcing any product that our customers consider standard. In fact, one of our  greatest strengths as a reseller has been our ability and willingness to source and purchase any product  on our customers’ behalf.  This process is fast and efficient. SHI allows our Inside Account Managers to  source products themselves, and to add them to SHI’s product catalog without the assistance of another  department. This means that a customer can request a product that does not currently exist in SHI’s  catalog, and that your Inside Account Manager will provide pricing and enter the customer’s order  within hours, rather than days.          18     MARKETING AND SALES  A. Provide a detailed ninety‐day plan beginning from award date of the Master Agreement describing the strategy to immediately implement the Master Agreement as your company’s primary go to market strategy for Public Agencies to your teams nationwide, to include, but not limited to: i. Executive leadership endorsement and sponsorship of the award as the public sector go‐to‐market strategy within first 10 days ii. Training and education of your national sales force with participation from the executive leadership of your company, along with the National IPA team within first 90 days SHI Response:  SHI realizes the value of partnering with a widely respected organization like National IPA. Upon award  this partnership would be immediately announced to the entire company, starting with our President  and CEO, Thai Lee.  This would be done via email to Thai along with the rest of the SHI Leadership, both  sales and internal support. In addition, we would post an article on SHI’s internal sharepoint site and  announce on our upcoming all hands call.  SHI has retained a small business feel despite our growth. Denise Verdicchio, Sr. Director of Public Sector  has worked for SHI for 22 years. She is personally working on this response and will continue to not only  sponsor this partnership but will also be an active participant in creating and supporting all marketing  plans. She, along with the rest of the Public Sector leadership, is fully committed to the success of this  contract. National IPA and its members will benefit from this personal touch and commitment to  success.  Ongoing training of our sales force on this contract will be critical to our success. Within the first week of  award, SHI plans to have a call including all of our Public Sector Senior Leadership and Public Sector  Marketing team as well as the appropriate sales, marketing, and contract personell for National IPA to  create a specific design to enable our entire sales team. Discussion points will include:   Train and enable all SHI Public Sector Field Account Executives and leadership   Train and enable SHI’s SM Sled Inside Account Executives and leadership   Announce contract strategies such as social media, targeted email blasts, and press releases   Facilitate current member market strategy   Facilitate perspective member market strategy   Create ongoing marketing plans.    We respectfully suggest having weekly touch point calls with Denise and the Public Sector marketing  team until the contract is officially launched. Continuing monthly review calls over the life of the  contract will allow us to stay focused, to analyze results for plans and strategies currently in place, to  discuss new campaign and marketing ideas, and to review the overall success of the contract.  Since our Account Exectutives live all over the country, we find the most efficient way to conduct traning  and enablement is with regional webcasts. There are on average 20 Account Executives per region so  this will allow each call to have a more collaborative feel and allow for in‐depth questions and answers.        19     We would love to have National IPA conduct live traning sessions at our global headquarters in  Somerset, NJ for our SM Sled organization as well as any local Account Executives. In addition, we would  welcome the opportunity to present SHI’s overall capabilities to the National IPA team.  SHI would expect this initial training to take place within the first 60 days of contract award. From there,  we can work closely with National IPA to create an ongoing training plan, including quarterly  touchpoints with the Regional Teams.  We would like to include the National IPA team on future in‐ person meetings to facilitate better relationships between our sales organizations.  Provide a detailed ninety‐day plan beginning from award date of the Master Agreement describing the strategy to market the Master Agreement to current Participating Public Agencies, existing Public Agency customers of Supplier, as well as to prospective Public Agencies nationwide immediately upon award, to include, but not limited to: iii. Creation and distribution of a co‐branded press release to trade publications iv. Announcement, contract details and contact information published on the Supplier company website within first 90 days v. Design, publication and distribution of co‐branded marketing materials within first 90 days vi. Commitment to attendance and participation with National IPA at national (i.e. NIGP Annual Forum, NPI Conference, etc.), regional (i.e. Regional NIGP Chapter Meetings, etc.) and supplier‐specific trade shows, conferences and meetings throughout the term of the Master Agreement vii. Commitment to attend, exhibit and participate at the NIGP Annual Forum in an area reserved by National IPA for partner suppliers. Booth space will be purchased and staffed by your company. In addition, you commit to provide reasonable assistance to the overall promotion and marketing efforts for the NIGP Annual Forum, as directed by National IPA. viii. Design and publication of national and regional advertising in trade publications throughout the term of the Master Agreement ix. Ongoing marketing and promotion of the Master Agreement throughout its term (case studies, collateral pieces, presentations, promotions, etc.) x. Dedicated National IPA internet web‐based homepage on Supplier website with:  National IPA standard logo;  Copy of original Request for Proposal;  Copy of contract and amendments between Principal Procurement Agency and Supplier;  Summary of Products and pricing;  Marketing Materials  Electronic link to National IPA’s website including the online registration page;  A dedicated toll free number and email address for National IPA SHI Response:  In addition to our extensive sales force promoting this contract actively and on a daily basis with our  current customer base and prospective customers, SHI intends to collaborate with National IPA on an  extensive marketing plan. We understand the goal is to increase the number of entities that buy via     20     National IPA in all public sector verticals. We have a dedicated Public Sector Programs team with  resources specifically identified to market and support growth for our national contracts such as  National IPA. If SHI is awarded, the National IPA team, alongside Denise and the entire Public Sector  leadership team, will work with the following people on this team in creation and execution of this  marketing plan:  Scott Garrett  Public Sector Operations Specialist  Scott_Garrett@shi.com    Lauren Baines  Public Sector Marketing Specialist  Lauren_baines@shi.com  We have prepared the below marketing plan but will remain flexible and open to collaboration post  award. We are agile and will work quickly to execute the agreed upon plan.  First week:   Create a co‐branded press release and work quickly to distribute to agreed‐upon trade  publications    Post announcement along with contract details and contact information to www.shi.com   Begin design of co‐branded marketing materials including print, electronic, email, and  presentations   Discuss publication and distribution plans, as well as a plan to distribute and follow up on leads   Create social media strategy   Design and implement National IPA secured website on www.shi.com including National IPA  logo, copy of original RFP, copy of contract and amendments, summary of products and pricing,  marketing materials, a link to National IPA’s website, and all relevant contact information.    First month:   Complete design of co‐branded marketing materials   Finalize plans to publish and distribute   Begin distribution to current and prospective National IPA members   Implement initial social media strategy  First ninety days:   Post announcement as a blog post to our widely read blog.shi.com series   Complete training and enablement for SHI sales force   Complete publishing and distribution of initial marketing materials   Analyze initial activity    Discuss next ninety day plan for marketing        21     Ongoing:   Design and publish national and regional advertising in trade publications    Market and promote the Master Agreement including case studies, presentations, campaigns,  and blog posts    SHI participates in hundreds of trade shows, conferences, and meetings across the country. National IPA  has our commitment to participate at specified shows as well as looking for additional opportunities to  broadcast and promote our partnership.    Specifically, SHI will attend, exhibit, and participate at the NIGP Annual Forum alongside National IPA  suppliers. We are happy to assist National IPA in promoting and marketing this event and look forward  to collaborating on a plan that will drive attendance.  SHI currently provides seminars and workshops to our public‐sector customers across the country. We  would be pleased to do the same for National IPA members. In all cases, we would work with you to  determine the right topics, venue, timing, and participants. Some examples include:  Manufacturer Table Show – held annually, SHI will bring in manufacturers that currently do business  with National IPA as well as emerging partners for a day of education and demonstration.     Technology Roundtables – this event brings together Public Sector IT Professionals and leading  manufacturers to discuss current and future technology and how it can be used to solve problems or  innovate solutions for the future.  Webinars – SHI frequently holds webinars for our customers. Topics range from Software Volume  licensing (Microsoft EA, VMWare ELA), specific product features, and more broad solution areas.  Workshops – typically done in a half day, a workshop is meant to educate customers on all the aspects  of a particular solution. One recent example is SHI’s Video Surveillance Workshop. We have presented  this workshop in 13 cities across the country and have discussed challenges, technology, policy, and  future considerations.  Summits ‐ SHI holds technology summits at our corporate headquarters in Somerset, NJ.  Current  summits include mobility and software asset management (held bi‐annually). The State is welcome to  attend these at no additional charge.      Custom Events ‐ SHI will help National IPA coordinate any event that they believe will be beneficial to  the participating entities.     In addition, SHI regularly publishes a widely read blog ‐ http://blog.shi.com/. Recent posts include  information on audits, E‐Rate, VMWare VSphere Licensing Changes, and Microsoft O365 Productivity.  Immediately following is a sample marketing plan.     22            23             24     B. Describe how your company will transition any existing Public Agency customers’ accounts to the Master Agreement available nationally through National IPA. Include a list of current cooperative contracts (regional and national) your company holds and describe how the Master Agreement will be positioned among the other cooperative agreements. SHI Response:  SHI realizes that the transition process is essential to National IPA’s success. Below, please find a brief  explanation, along with visual support, of SHI’s collaborative process. In order to make the transition  smooth, efficient, and effective, the process described may be customized to best meet the each  member’s specific needs. For now, the SHI team recognizes six (6) areas of focus to help ensure National  IPA’s transition is successful:  1. Manufacturer Supply and Pricing Agreements  2. Product Standards  3. Dedicated Account Team and Team Tools  4. Custom/Customer Specific Reports  5. Order Acknowledgement Customization  6. Non e‐Procurement Site Implementation: SHI.com  For each of these six areas, SHI and National IPA will work collaboratively on identified tasks to complete  implementation of Information Technology Solutions. The breakdown of these tasks is outlined below.  Area of Transition  Manufacturer Supply and  Pricing Agreements SHI Task to be Performed National IPA (member) Task to be Performed Create a contract/agreement  document in the SHI System    Identify source(s) of supply    Request/plan for routine  product/price updates from  any non‐automated price  feed from manufacturer    Set up customer specific  SKU’s as applicable    Create training/information  documents on customer  requirements for internal use    Publish customer terms,  pricing, contracts, and  processes and policies to  SHI’s Internal SharePoint site  for customer    Identify all existing  customer/manufacturer  agreements Submit letter to  manufacturer naming SHI as  agent/reseller for customer Identify customer policy for  manufacturer selection and  orders Identify any IT refreshes  already in process so that SHI  is able to best assist  customer.     25     Create customer‐ready  marketing efforts to inform  all authorized purchases  about the new contract  begin request authorization  process and identify SHI  requirements for any  applicable manufacturers    Area of Transition Product Standards SHI Task to be Performed National IPA (member) Task to be Performed Work with manufacturers or  distributors to set inventory  levels, if applicable    Flag standard products in  customer catalog at item  level    Place first inventory order, if  applicable    Create process  documentation and update  to SHI internal SharePoint  site    Set custom fields for  customer order entry to  identify and capture order‐ specific information that City  would like to maintain      Identify customer standards Forecast volume on any IT  inventory requirements, if  applicable Define non‐standard request  process for customer and SHI  approval validation for  processing, if applicable             26       Area of Transition  Dedicated Account Team  and Team Tools SHI Task to be Performed National IPA (member) Task to be Performed Introduce City of Mesa to its  dedicated sales team     Train all team members on  pricing and terms for City of  Mesa contract    Ensure that City of Mesa is  aware of best customer‐ specific email alias for their  use    Verify proper setup of team  folders in Outlook    Identify any specific  requirements for City   Area of Transition  Custom/Customer Specific  Reports  SHI Task to be Performed National IPA (member) Task to be Performed Define custom fields that City  of Mesa may wish to capture    Establish reporting schedule     Establish distribution list    Validate custom fields  transmitted in e‐procurement  and non‐e‐procurement  orders    Program data labels and list of  values in order entry to  capture information    Set order types: Standard,  non‐standard, replacement,  expedite    Submit report requirements  to Web Administration    Develop and test reports    Define custom fields that  City wishes to capture Establish reporting schedule Establish distribution list Establish report layout and  report type/requirements    27     Introduce and train City of  Mesa on SHI reporting tools    Set user permissions    Area of Transition  Order Acknowledgement  Customization SHI Task to be Performed National IPA (member) Task to be Performed SHI account team customize  in SCII    Test order acknowledgement  documents    Define City of Mesa specific  content    Define intended recipients  of notifications, such as  Order of Acknowledgement      Area of Transition SHI.com non e‐Procurement  site implementation SHI Task to be Performed National IPA (member) Task to be Performed Define organization/site  requirements (process flow)    Define system users and set  up permissions    Design SHI.com customer  specific implementation    Define/build any additional  catalog requirements    Define SHI.com special  verbiage requirements    Connect users to City of  Mesa‐specific catalogues    Conduct user demonstration  and training sessions for City  of Mesa  Define organization/site  requirements (process flow) Define system users and set  up permissions Define approval process  and billing  process/requirements Define catalogue content Test system and processes           28     C. Acknowledge that your company agrees to provide its company/corporate logo(s) to National IPA and agrees to provide permission for reproduction of such logo in marketing communications and promotions. Acknowledge that use of National IPA logo will require permission for reproduction, as well. SHI Response:  SHI acknowledges and can comply.    D. Supplier is responsible for proactive direct sales of Supplier’s goods and services to Public Agencies nationwide and the timely follow up to leads established by National IPA. All sales materials are to use the National IPA logo. At a minimum, the Supplier’s sales initiatives should communicate: i. Master Agreement was competitively solicited and publicly awarded by a Principal Procurement Agency ii. Best government pricing iii. No cost to participate iv. Non‐exclusive contract SHI Response:  National IPA will benefit from SHI’s laser focus on being the best at delivering the products and services  your members need. A dedicated approach to the Public Sector business for the last twenty years has  helped us to create solutions that are specific to the unique needs of State, Local, and Education  customers across the country.    SHI’s Public Sector sales force will be actively promoting the availability of National IPA to customers and  prospects across the country. With the assistance of our Public Sector marketing team, all leads that are  generated will be followed up immediately. Any leads that come in, regardless of the source, are  uploaded to our CRM database and assigned to an Account Executive.  In addition, the lead is attached  to a specific lead source so we have the ability to track ROI on various marketing strategies. The AE is  then emailed to make them aware that a new lead has been published to them. The AE will document  any activity with that customer in CRM. When appropriate, the lead can be transitioned to an  opportunity and tracked through close.  SHI agrees that all joint sales materials for this contract will include the National IPA logo and reference  the required information as required by this RFP.        29     F.  Supplier is responsible for the training of its national sales force on the Master Agreement. At a minimum, sales training should include: i. Key features of Master Agreement ii. Working knowledge of the solicitation process iii. Awareness of the range of Public Agencies that can utilize the Master Agreement through National IPA iv. Knowledge of benefits of the use of cooperative contracts SHI Response:  SHI understands and agrees to train our national sales force on the Master Agreement. As discussed  above, the sales leadership will be actively involved in ongoing training over the life of the contract.   Training will include key features of the agreement, working knowledge of the solicitation process,  awareness of the Public Agencies that can utilize this agreement, and specific information on the  benefits of this Master Agreement as opposed to other cooperative contracts available for use.  G. Provide contact information for the person(s), who will be responsible for: i. Marketing ii. Sales iii. Sales Support iv. Financial Reporting v. Contracts SHI Response:  In order to provide the most seamless and efficient service to National IPA, we will be providing one  primary point of contact. If other people are needed to address the situation, Scott will quickly make  connections with the appropriate people and stay involved until the situation is addressed completely.  Scott Garrett  Public Sector Operations Specialist  732‐868‐5915  Scott_Garrett@shi.com    H. Describe in detail how your company’s national sales force is structured, including contact information for the highest‐level executive in charge of the sales team. SHI Response:  As previously articulated, SHI has experienced tremendous growth in size and scope due to our  customers' expanding needs. Our organic growth and over two decades of stability are a direct result of  backing a highly‐skilled and tenured sales force with software volume licensing experts, hardware  procurement specialists and certified IT services professionals.     In terms of organization, we have retained a small business feel in order to remain agile for our  customers. We have few layers of management and empower our sales teams to make decisions that  are in the best interest of their customers.        30     To ensure that we are meeting the needs of all Public entities, we have split our Public Sector business  unit into three divisions:   Public Sector Field   SM Sled    Federal  Public Sector Field  The Public Sector field organization supports State Government, Local Government, K‐12, Higher Ed, and  Public Healthcare entities across the country. Our sales teams are regionally aligned in order to provide  local focus; subsequently, our Account Executives are able to live where they work. Each region is  managed by a regional director who lives in that region.   Customers are supported by an Account Executive and a dedicated Inside Sales Team. Field territories  are structured by vertical and geography. We have over 120 Account Executives (AE’s) who live and  work in their territories. The emphasis is on having them be face to face with their customers as  frequently as possible. We are in the process of expanding our field Account Executive team to ensure  that each AE is focused on 25 accounts or less and in one specific vertical. This will enable us to continue  to cater to the individualized needs of our customers.   Each Account Executive is supported by a team of Inside Account Mangers (IAM’s). This group totaling  over 150 professionals is located in our global headquarters in Somerset, NJ.  This team is also aligned to  match specific regions so that everyone who is working with you will have sensitive knowledge of  National IPA member’s regional environment and the nuances associated there. They are responsible  for the day‐to‐day customer service questions such as order placement, order tracking, quotations,  return authorizations, product information etc.     31     Denise Verdicchio  Sr. Director Public Sector  908‐884‐1389  Denise_verdicchio@shi.com  Yara Ismail  Director of Enterprise Inside Sales – Public Sector  732‐537‐7240  Yara_ismail@shi.com  SM Sled  The Small/Medium Sled division is focused on supporting the needs of the smaller K‐12, local  government, and higher education institutions across the country to ensure personalized attention  regardless of customer’s size.  In this case, we have defined small as a K‐12 district with 7500 Students  or less, a higher education institution with 1500 students or less, or a city/town with 50,000 population  count or less. These customers often are overlooked by large resellers yet have the same need to stay  current with technology as their larger counterparts. This division is based out of our global  headquarters in Somerset, NJ. This team consists of 170 Inside Account Executives (IAE’s) who support  their customers’ needs from start to finish. They are organized into the same six regions as the field  team and both a manager and a team lead support each region.        32          33       I. Explain in detail how the sales teams will work with the National IPA team to implement, grow and service the national program. SHI Response:  SHI has extensive experience administering contracts of this nature, and we are confident that we will  exceed the requirements of the Scope of Work and Terms and Conditions. We take great pride in our  ability to administer the agreement to the maximum benefit of the contract users.    The SHI sales team will work in conjunction with the National IPA sales team to promote the Master  Agreement to both existing participating Public Agencies and prospective Public Agencies. As detailed  previously in this response, the SHI Sales team will receive in‐depth and ongoing training on the Master  Agreement. Public Sector sales leadership will be actively involved in implementing and servicing this  agreement. The entire team is committed to growth and success of this contract.  SHI Account Executives will promote this agreement actively within their account base during regular  face‐to‐face meetings and calls with customers and prospects. In addition, we welcome joint sales calls  with the National IPA sales team.    Scott Garrett, the dedicated National IPA Public Sector Operations Specialist, will coordinate regular  communications with our sales team and actively follow up on all campaigns. He can quickly distribute  leads and connect the National IPA team with their correct counterpart on the SHI sales team.      34     We understand the intricacies of implementing and maintaining a contract of this nature, supporting  multiple state agencies and municipalities. When we enter into an agreement of this magnitude, we  take great care to implement support and service plans to meet the needs of each individual agency,  city, county, township, school district and higher education institution.    J. Explain in detail how your organization will manage the overall national program throughout the term of the Master Agreement, including ongoing coordination of marketing and sales efforts, timely new Participating Public Agency account set‐up, etc. SHI Response:  In addition to our extensive sales force promoting this contract actively and on a daily basis with our  current customer base and prospective customers, SHI intends to collaborate with National IPA on an  extensive marketing plan. We understand the goal is to increase the number of entities that buy via  National IPA in all public sector verticals. We have a dedicated Public Sector Programs team with  resources specifically identified to market and support growth for our national contracts such as  National IPA. If SHI is awarded, the following team members will collaborate with the National IPA team  to create and implement the marketing plan:    Scott Garrett  Public Sector Operations Specialist  Scott_Garrett@shi.com  Lauren Baines  Public Sector Marketing Specialist  Lauren_baines@shi.com  Scott’s main focus will be onboarding and growing the National IPA contract vehicle. He will be  responsible for coordinating calls and other communications between SHI Leadership and sales teams  and National IPA. Having Scott in place will help us to stay focused on our joint goals and also to review  success as we go so we can make changes as needed.  We have previously discussed our marketing plans in this response and fully expect to continue to  generate new marketing and sales campaigns to continue to drive business over the life of the  contract.     When there is interest from a prospective public agency we will work quickly with National IPA to get  their account set up and introduced to their account team at SHI. Having Scott Garrett as the primary  point of contact will help to ensure that this process is seamless for the customer.  K. State the amount of your company’s Public Agency sales for the previous fiscal year. Provide a list of your top 10 Public Agency customers, the total purchases for each for the previous fiscal year along with a key contact for each. SHI Response:  Immediately following are our top 10 Public Agency customers. SHI can provide additional information  upon request.     35     Customer Name Invoiced Revenue Buckets  Texas Seat Management 28,915,734.65 $50m ‐ $100m  MN Office of Enterprise Technology 20,015,880.01 $50m ‐ $100m  NJ New Jersey Information Technology 18,827,813.44 $50m ‐ $100m  Atos Governmental IT Outsourcing Services, LLC 17,093,142.56 $50m ‐ $100m  Louisiana Office of Technology Services 17,072,810.99 $50m ‐ $100m  KY Technology, Commonwealth Office of (Cot) 16,978,802.17 $50m ‐ $100m  NY Department of Health 13,400,486.55 $50m ‐ $100m  City of New York NY 13,089,495.50 $50m ‐ $100m  County of Harris  12,760,337.44 $50m ‐ $100m  City of Houston  12,079,388.15 $50m ‐ $100m    L. Describe your company’s information systems capabilities and limitations regarding order management through receipt of payment, including description of multiple platforms that may be used for any of these functions. SHI Response:  Regardless of the method of submission (email, fax, web), the order is routed to your dedicated  Inside Sales Team for validation and the management of the order process. Upon receipt, the Inside  Account Manager (IAM) will review the order to ensure that the order is complete and can be  processed.  If the order is not valid for any reason, the IAM will contact the customer within 2‐4  business hours to request any necessary information. If lower pricing is available, the IAM will inform  the customer and pass the lower price on. In a case where a price has increased, SHI will honor the  price if the quote is within 30 days of the original quote. If the quote has expired, SHI will make a best  effort to work with the manufacturer to honor the price.  Your dedicated sales team will enter all valid orders on the same day they are received.  An automatic  order confirmation will be generated and sent to the end user listed on the purchase order, as well as  any other contacts the customer has designated. We can customize the information on the order  acknowledgement email and can include any and all information required by the customer.     36         Once an order is entered, it is then directed to SHI’s Procurement Department for processing. This team  is then responsible for placing the order with the appropriate Distributor or Manufacturer. The orders  are sent electronically and confirmed.  All orders are placed within 24 hours of being received. Should  there be a change in the delivery time, the Procurement team will notify the sales team immediately.  At  that point we will reach out to the end user to discuss options.  Should a product not be available at the time of order placement, the Inside Account Manager will reach  out to the contact who placed the PO and advise that contact on all the options available. No  substitutions will be ordered unless we have express, written authorization to do so by the end user.  Assuming there are no delays, the tracking number will be uploaded to the website upon shipping  if/when provided by our vendors. In addition, the customer can opt to receive an advanced shipping  notification which will be emailed automatically upon shipping of the product(s). See an example of the  ASN below.     37     SHI is able to customize our invoices to meet the needs of individual customers. If awarded, we will work  with each customer to add necessary fields to our order entry system so that information will be  captured on the invoice as well. A sample invoice is included for you below. Again, this can be  customized to meet any requirements necessary.     38              39     We have the flexibility to bill upfront, in arrears, or on a payment plan depending on the requirements  of each purchase. We will have these discussions before the quote process takes place and confirm  again before we enter the purchase order. In this way, we will alleviate incorrect billings. In the rare case  that something is incorrectly billed, the customer can simply reach out to their sales team and they will  work with our Accounting Department to correct.  SHI is able to accommodate sending either hard copy invoices, electronic invoices, or both. Summary  billing is also available. We can accommodate changes to their preference at any time. Invoices will be  sent only after the products have been delivered.  Should we get an award, we would like to sit down  with each National IPA customer to understand their requirements, typical acceptance procedures, and  time frames.    SHI’s open architecture systems allow us to integrate with virtually any eCommerce platform, whether  through market leaders or a proprietary solution. Ariba, Perfect Commerce, PeopleSoft, SAP and Oracle  are the most popular applications supported by SHI. In general, SHI can support systems that use cXML  (commerce extensible mark‐up language), or EDI (electronic data interchange) standards. This includes a  wide range of applications, proprietary systems.  In addition, SHI supports the following Punch‐out types:   Ariba Punch‐out   Coupa   ePlus Procure+   Hubwoo   Oracle OAG  and cXML Punchout   Perfect Commerce Roundtrip   PeopleSoft Direct Connect   SAP OCI Roundtrip   Sciquest   Verian ProcureIT    SHI’s order entry system, procurement system, and invoicing system are all standardized on AX. This  allows for seamless process and maximum efficiency from order placement to billing.  SHI has a team of  AX developers in house to accommodate our various customers’ needs.  M. Provide the Contract Sales (as defined in Section 10 of the National Intergovernmental Purchasing Alliance Company Administration Agreement) that your company will guarantee each year under the Master Agreement for the initial three years of the Master Agreement (“Guaranteed Contract Sales”). $_______.00 in year one $_______.00 in year two $_______.00 in year three To the extent Supplier guarantees minimum Contract Sales, the administration fee shall be calculated based on the greater of the actual Contract Sales and the Guaranteed Contract Sales. SHI Response:  Per addendum #2, this information is not required.  At this time, SHI prefers not to guarantee sales as  we have no history or data with which to accurately determine these numbers. We are open to working  with National IPA on forecasts in the future.     40     N. Even though it is anticipated that many Public Agencies will be able to utilize the Master Agreement without further formal solicitation, there may be circumstances where Public Agencies will issue their own solicitations. The following options are available when responding to a solicitation for Products covered under the Master Agreement. i. Respond with Master Agreement pricing (Contract Sales reported to National IPA). ii. If competitive conditions require pricing lower than the standard Master Agreement not‐to‐exceed pricing, Supplier may respond with lower pricing through the Master Agreement. If Supplier is awarded the contract, the sales are reported as Contract Sales to National IPA under the Master Agreement. iii. Respond with pricing higher than Master Agreement only in the unlikely event that the Public Agency refuses to utilize Master Agreement (Contract Sales are not reported to National IPA). iv. If alternative or multiple proposals are permitted, respond with pricing higher than Master Agreement, and include Master Agreement as the alternate or additional proposal. Detail your strategies under these options when responding to a solicitation. SHI Response:  We understand that some public agencies will choose to conduct their own formal solicitations even  though this Master Agreement is in place. In these cases, SHI will evaluate each situation as it arises. We  will do everything we can to ensure that the resulting sales are priced at or below the National IPA  pricing and reported to National IPA.  It is our goal to make this contract as successful and widely used  as possible and will not look to steer business away from it, even if the agency chooses to do a formal  solicitation. SHI has put forth our most aggressive pricing to National IPA in this proposal. For this reason  we believe that responding with this pricing will be the most widely used strategy (as described in i.). If a  publisher/OEM offers competitive pricing, SHI will pass that pricing along and report those sales to  National IPA (as described in ii.). It is highly unlikely for SHI to offer pricing higher than what is in the  Master Agreement unless we were using the Master Agreement pricing as a comparison to show the  value of this agreement (as described in iv.).    2. Provide a description of the product lines that can be provided by your firm. SHI Response:  Currently, SHI collaborates with thousands of Hardware and Software partners and will provide National  IPA access to the most extensive IT catalog in the industry. In addition, SHI continually adds vendors and  products to our databases to allow our customers the most updated, comprehensive choices possible.  We are confident that our flexibility, extensive product offering, and our willingness to evolve along with  Public Agencies’ changing needs, are unique strengths that SHI happily leverages for National IPA  members. We will also reach out to new vendors upon request, or when we identify new technologies  that we believe members will want to purchase.    Over the past decade IT has changed.  Although there is still a need for commodity products, attention  has turned more and more to building solutions that will solve customers’ needs. In response to shift,     41     and working within our customer‐centered foundation, we developed our Enterprise Solutions Group to  include solution based support. This team has over 150 people who hold 3000+ certifications for various  products and solutions. Their goal is to help address our customers’ needs, acquire the right technology,  and adopt that technology into their environment to achieve the desired outcomes. This team can bring  together resources to talk across an entire solution whether that be end user, datacenter, or security.     These teams are vendor neutral and use their breadth of experience to help tailor conversations that  will be optimal for a customers’ specific environment. We engage our customers during the strategy and  solution design phases of a project and assist with activities like strategic planning, assessments, white  boarding, proof of concepts and obtaining demo units. Initiating conversations at this point in the  conversation leads to a more optimized project and cost savings.  To help with the selection of product, equipment, and services (whether it be a Laptop, Desktop, All‐in‐ One, Tablet, or other device) the SHI Team provides National IPA members with a customized  procurement website, allowing authorized end‐users to select from standard configurations and  peripherals, as well as to provide necessary information to ensure a successful installation. The  procurement website provides all service catalogs, approved hardware configurations, and inventory  databases, allowing National IPA members to procure the best products for their needs.   National IPA members will benefit from SHI’s laser focus on being the best at delivering the products  and services it needs, while continuing to keep our costs aggressive with our low overhead. A dedicated  approach to the Public Sector business for the last twenty years has helped us to create solutions that  are specific to the unique needs of State, Local, and Education customers across the country. Because  we provide a neutral vendor approach – not valuing one vendor more than any other – and because we  use our experience and breadth of knowledge to assist in finding the right technology to meet the  specific requirements of your environment, we are confident we are the best choice as your IT Solutions  Partner.  SHI included an overview of some of our top partners in our response to section 3.2 Distribution,  Logistics we have also included an additional list in the Attachment section of this response. SHI is happy  to provide additional information regarding partners or answer questions about procuring a specific  product if needed.  3. Provide a description of the services that can be provided by your firm. SHI Response:  In addition to an extensive product catalog, SHI offers a full range of services.  Outlined below are some  of the services SHI will work collaboratively on with National IPA members:  Software Procurement   COTS   Software Volume License procurement/management   Contract negotiation and optimization assistance  End User Computing   Mobility   Laptops   Tablets   Desktops   Systems Management     42      Phones  Unified Communications  Datacenter   Servers   Storage   Networking  Equipment   Converged Infrastructure   Cloud   Colocation  Security   Assessments   HIPPA Security   Vulnerability   Security Posture  Review (SPR)   Penetration Testing   Social Engineering    Policy Creation   Data Protection Solutions and Services   Firewall/UTM/NGFW Implementation   DLP/Encryption Implementation   Video Surveillance  Lifecycle Services    Acquisition   Deployment    Installation   Data Migration   OS Upgrades   Support   Recovery   Integration Services   Rack and Stack   Advanced  Configurations   Mobile Device Configurations   Asset Tagging   Image Deployment   Laser Etching   Activations   Kitting   Integrated Add‐on Components   Custom Label and Packing   Inventory Management  Connectivity Services   Voice   POTS   Mobility   UC Hosted PBX   SIP/PRI    Network and Data   Ethernet/Fiber   Wireless   SDN   PTP   MPLS   Cable/DSL   Specialized   Telecom Expense Management   Service Provider Assessment  Microsoft Services   O365   Active Directory   SCCM   Skype   Exchange   SharePoint   Windows      43     Other Services   Project Management   Auxiliary Services   Partner Delivered       In addition to these myriad products and services, SHI can assist with technical evaluation of products as  well. Evaluation may include full proof of concepts or simply obtaining evaluation units. In this way, we  will enable National IPA members to make the best choices and scope each project appropriately.  Beyond just offering competitive pricing for products covered under this contract, SHI will strive to help  National IPA members to avoid costs associated with selecting the wrong technology, or with project  delays due to incorrect scope. In addition, we will review buying programs and conduct price modeling  to ensure that the technology you choose is being procured in the best way possible and at the most  aggressive price.     4. Provide a detailed description of any programs available for Participating Agencies seeking to set and meet goals for historically underutilized businesses (e.g. minority, woman, veteran, disabled, etc.). Discuss how transactions between offeror and tier one suppliers and Participating Agencies and tier one suppliers will be tracked and accounted for and any quality assurance measures that are in place to assure a high‐performance standard for tier one suppliers. SHI Response:  SHI’s Diversity Business Development initiative seeks to enhance business opportunities with companies  whose corporate objectives include supplier diversity. As both a minority owned (MBE) and woman‐ owned (WBE) enterprise, SHI is the country’s largest MWBE provider of information technology  products and services. SHI also maintains its own internal supplier diversity program and seeks to  engage MBE and WBE suppliers to meet SHI product requirements and operational needs.  SHI International Corp is a 100% minority owned company and a Corporate Plus member of the National  Minority Supplier Development Council (NMSDC).  SHI is certified by the New York & New Jersey  Minority Supplier Development Council of the NMSDC and recognized by the 24 other regional affiliates  of the NMSDC including the Canadian Aboriginal and Minority Supplier Council (CAMSC). SHI is also a  woman owned business and certified with the Women's Business Enterprise National Council (WBENC)  and certified as a MWBE with California Public Utilities Commission (CPUC).     SHI International Corp holds current State Government Certifications in the following states, cities, or  counties: Delaware, Indiana, Massachusetts, Missouri, New Jersey, Wisconsin, Virginia, North Carolina,  Prince George’s County, Maryland, New York City, NY.  In 2004, SHI launched an executive initiative to increase SHI International Corp presence in the minority  business community and established a diversity business development program. An executive‐level  position was created to better meet the expectations of our customers for SHI's participation in their  M/WBE development and 2nd Tier programs. SHI is the only M/WBE that maintains a fully‐staffed team  dedicated to supplier diversity matters for our clients and vendor partners. Our team manages and  distributes just over 175+ diversity spend reports to our clients today (see below). SHI continues to  increase the number of diverse suppliers in SHI's Managed Partner Network which our internal  operational requirements alongside accommodating our clients to meet their specific governmental,     44     educational and corporate diversity goals. In addition, we sponsor and support annually, on average,  over 50 supplier diversity related events which include corporate client‐sponsored events that value  diversity spend opportunities across the country. SHI is a Corporate Plus member and a sustaining  annual contributor to the Business Consortium Fund of the NMSDC.  Diversity Spend Client Reporting SHI tracks and reports 1st and 2nd tier spend with minority, women, veteran and disabled/small  disadvantaged/HUB zone owned businesses and makes these reports available to all customers that  track such spend. As a 6.8 billion dollar company, SHI reports these results to over 150+ of our  customers on a quarterly basis.        MBE Partner Network & Initiative SHI has an active program to recruit minority, women, veteran and disabled/small disadvantaged/HUB  zone owned businesses as “Go To” partners for both SHI internal services and Client Services requests.  The success of this program is coupled with an executed Partner Teaming Agreement with several  minority, women, veteran and disabled/small disadvantaged/HUB zone owned businesses, and we  actively mentor several seeking to promote them not only internally, but also to other SHI customers. To  date, these businesses have gained entrance to several of SHI customers as a direct result of SHI’s  referral. Our diversity team engages our Director of Partner Network to attended supplier diversity  events with the sole purpose to recruit additional “Go To” minority‐owned businesses.     Tier II Program The growth, development, and mentorship of minority, women, veteran and disabled/small  disadvantaged/HUB zone owned businesses is a commitment SHI regards as crucial to our major clients’  continued success. Capturing and retaining the loyalty of our clients who value diversity spend is an  integral part of our professional services strategy and one which has mutual benefit. As a Large M/WBE,  we continue to grow an effective Tier II program by accessing our Services Partner database using  qualified certified minority, women, veteran and disabled/small disadvantaged/HUB Zone owned  businesses where it complements our major clients overall supplier diversity program today.   SHI plays a key role as a Primary vendor or Tier I supplier to a vast number of our major business  segment clients. Not only do we provide Tier I quarterly reports to 150+ clients, by customer request,   we also provide Tier 2 reporting where the totals reflect a direct link to our customer procuring  professional services through subcontract arrangement that is directly tied to the performed service for  the client.  SHI understands there is value along with a continued commitment on your organization’s part to help  increase your Tier 2 spend with minority, women, veteran and disabled/small disadvantaged/HUB zone  owned businesses. In support of this commitment, SHI International is in partnership with these  diversity businesses as our sub‐service providers to furnish your company when they meet your quality,  service, and price standards.       45     SHI International Corp continues to remain committed to growing its program and providing mentoring  and support to fellow minority, women, veteran and disabled/small disadvantaged/HUB zone owned  businesses.  5. Describe how your firm proposes to distribute the products/services nationwide. SHI Response:  SHI is proud of our tremendous network of distributors and partners.  We maintain relationships with  our large IT Distributors (Ingram Micro, Tech Data, and Synnex), as well as smaller, local distributors, and  the manufacturers directly. With each transaction, we source from the supplier with inventory in the  closest proximity to the customer, and drop ship directly to their door. Most products are delivered  within 3‐5 business days via UPS Ground.  Our extensive network allows reduced time to market for National IPA members and prospective  members. In addition, we have our own integration center located in New Jersey that can provide  warehousing and complete configuration capabilities when such a solution best meets your needs. Of  course, we always take the opportunity to find cost savings for our customers – and National IPA is no  different. In addition to leveraging our partner relationships for savings at the vision and design phases  of an IT project, when quoting and sourcing product, our sales teams also request information from all  of our distributors’ stock to obtain the best price for the National IPA member. In addition, we have  sourcing specialists on our procurement team who monitor purchase orders with the partner and  distributor community to ensure that no savings opportunities have been missed. In many instances, our  sourcing specialists have the ability to aggregate purchases for a specific partner or product across  multiple transactions or even multiple customers to realize a lower overall cost.   While SHI does maintain a warehouse/integration center in Somerset, New Jersey, it is our relationships  with our major distributors that allow us to provide for efficient product delivery across the United  States.  This model reduces the overhead costs of maintaining our own additional warehouses.  Our  distribution model is important to SHI’s own internal cost structure and allows us to offer our customers  a very aggressive pricing model.  Our major distribution centers are located in:   Atlanta, GA   Chicago, IL   Dallas, TX   Fontana, CA   Fort Worth, TX   Jonestown, PA   Swedesboro, NJ   Los Angeles, CA   Memphis, TN   Miami, FL   Ontario, CA   South Bend, IN   Suwanee, GA      6. Identify all subcontractors that will be involved in processing agency orders under this contract and describe their distribution/delivery processes. SHI Response:  SHI is not using any subcontractors as part of this contract; however if SHI needs assistance with  distribution/delivery processes, SHI has an Elite Partner Network that we call upon for service delivery  on occasion. We consider this partner network our “burst” partners for those times when we do not  have the SHI FTE to deliver on a project.     46     SHI has each potential partner fill out an extensive qualification checklist. This list is used to vet the  types of services offered, certifications held, overall experience, and where they are able do business.      One of our top priorities is confirming that our partners’ resources are certified for the work we are sub‐ contracting them to perform. Please note that our practice managers/SAs/Program Managers will be  asking for proof of certification as needed.    We will inform National IPA in advance of any subcontractor that we intend to use.  7. Provide the number, size and location of your firm’s distribution facilities, warehouses, and retail network as applicable Provide information on the productivity of your facilities and systems as follows: a. How many orders are processed daily on an average b. How many devices does your facility configure daily on an average c. What is the highest number of orders processed in a single day d. What is the highest number of devices configured in a single day from the facilities described SHI Response:  As described above, SHI utilizes a network of distributors and partners.   SHI’s internal procurement  team process an average of 6000 orders per day.  SHI Integration Center, Piscataway, NJ   400 orders for configuration, per day.   1800 units per day    3000+ is the highest number of orders processed in a single day   Depending on the configuration and device types considered, we have processed orders for over  3000 in a day, and configured over 40,000 units in a month.  On average, our top three distributors process 21,000 orders per day with a max of 36,000 in a day at  peak time  8. State any return and restocking policy, and any fees, if applicable associated with returns. SHI Response:  SHI’s return policy is customer‐centered – we will accept any request to return any unopened box up to  30 days after receipt, unless the manufacturer specifically has a no returns policy and we have noted  this on the quote. In order to request a return, a customer first contacts the City of Mesa’s dedicated  sales team, via email, phone, or through the “Request Return Authorization Number” section on the City  of Mesa/SHI.com website. Your Inside Account Manager then generates a return authorization (RMA)  number and provides that to you with a shipping label or account number. Finally, the City of Mesa  customer writes the RMA number on their return box, ships it to SHI, and we process the return. In  some cases, to expedite a return, SHI will arrange to have the return‐product picked up directly.   Once SHI receives the return, we will credit City of Mesa’s invoice. If you request a replacement order,  we work with you to expedite a replacement even before we receive the return.    Occasionally, Software Publishers may require a customer to fill out a letter of destruction. In these  cases, SHI provides the form to the City of Mesa customer, who signs and returns the form. To help     47     simplify and expedite the process, SHI takes care of the rest – processing the Letter of destruction with  the Software Publisher.   Rarely, a customer might receive an incorrect or damaged product; if this occurs, SHI accepts return of  that product within 30 days, with no restocking fees, regardless of the package being opened.   At any point, if customers encounter issues with their products, the SHI Account Team is accessible and  eager to help!  9. Describe your invoicing process. Is electronic invoicing available? Is summary invoicing available? Are there other options on how an agency receives an invoice? SHI Response:  SHI is able to accommodate sending either hard copy invoices, electronic invoices, or both. Upon award,  we will work with the National IPA members to understand preferences and set up the account  accordingly. We can accommodate changes to preferences at any time.  An invoice will be sent only  after the products have been delivered and accepted by the member.  Should we get an award, we  would like to sit down with the National IPA and each member to review any additional requirements  and provide our recommendations based on best practices with other customers.  10. Describe your delivery commitment: a. What is your fill rate guarantee? b. What are your delivery days? c. Do you offer next day delivery? d. How do you facilitate emergency orders? e. Are shipping charges exempt for ALL who use this contract? f. Describe how problems (such as a customer ordering a wrong product or a customer receiving a defective product; etc.) are resolved. SHI Response:  SHI relies on our extensive distribution network for the large majority of our shipments. On average,  across our largest distributors, our fill rate is between 93%‐100%. In most cases, where we are not filling  orders on time, it is due to constrained items.  In these cases, we notify the customer immediately and  either source from a different distributor at the same cost to customer, continue to wait, or cancel the  order based on what the customer wishes to do.  Most products are delivered within 2‐5 days of being ordered. At the time of quoting and again at order  placement, the SHI sales team will inform the end‐user of the exact delivery timeframe expected.     Should this change, we will notify the customer immediately upon learning of any changes. We will  communicate with the customer however they prefer but typically, communications of this type are  done via email. Updates will be provided at least every 24 hours, or on an agreed upon time frame, until  the product is delivered.     When there is a delay, SHI will provide any alternatives available. Alternatives may include a different  distribution source, comparable products, cancelling the order, or potentially discounting to account for  the delay.  Shipments are made Monday through Friday. Next day and Saturday delivery are available for in‐stock  items but are subject to a shipping fee and will require that the order be received before the cut off time     48     (dependent on time zone).  SHI will handle shipping in the same way for any and all National IPA  member, regardless of size and location.  Standard shipping will be covered but special delivery  requirements or expedited shipping may be subject to an additional charge.  If there is ever an issue with delivery, such as the wrong or defective products, the customer simply  needs to request a return by reaching out to the Inside Account Manager or by navigating to the  “Request Return Authorization Number” section of the custom IPA website.  Describe the types of customer service available to agencies that use this contract:  a. Is online support available? b. Is phone support available? c. Can agencies request a dedicated service representative and/or a dedicated service team? If a dedicated customer service representative and/or team are assigned, what types of services does the representative/team provide? How do you help the customer manage our account? d. How are problems resolved? e. What are the location and hours of your call centers? f. What response time is guaranteed when a customer service request is made? g. Do you measure/track the success of your customer service program? If so, how do you do this, and what are your findings? h. Describe in detail your company’s ability to hold/warehouse customers’ orders and if there are any cost associated. SHI Response:  SHI provides a comprehensive customer support plan to ensure we are meeting each customer’s needs.  Customers are supported by a dedicated Account Executive and a dedicated Inside Sales Team. Field  territories are structured vertically and geographically. We have over 120 Account Executives (AEs) who  live and work in their territories. Their emphasis is on ace‐to‐face connections with their customers as  frequently as possible. We are in the process of expanding our field Account Executive team to ensure  that each AE is focused on 25 accounts or less and in one specific vertical.  This will enable us to  continue to cater to the individualized needs of our customers.   The field based Account Executives are responsible for meeting with their customers in person as often  as possible and for the overall relationship between the customer and SHI. In addition, they can bring in  resources as needed, be it SHI’s own Field Solution Engineers or other subject matter experts or OEM  specific resources.  SHI’s Account Executives are empowered to make decisions around the support of their customers, and  they have the autonomy to resolve issues as they arise. Because our Account Executives are responsible  for ensuring customer satisfaction, SHI is able to provide high quality customer service and ensure  efficient and effective response to questions and issues. In addition, the SHI Regional Directors are  engaged with the account teams to provide executive‐level support and to meet with customers as  needed.  Each Account Executive is supported by a team of Inside Account Mangers (IAMs). This group totals over  150 professionals and is located in our global headquarters in Somerset, NJ.  This team is also aligned to     49     match specific regions so that everyone who is working with you will have sensitive knowledge of  National IPA member’s regional environment and the nuances associated there.   SHI’s Inside Account Managers maintain direct relationships with the customers and have the  responsibility of ensuring customer satisfaction. Functional areas such as pricing, availability, order  entry, tracking, returns, product information, and expediting of orders are an integral part of their daily  activities. They execute the plan established by the Account Executive for a customer. The IAMs all have  experience working exclusively with Public Sector accounts and they are regionally assigned support for  the customers.    The sales teams can be reached on line via the National IPA custom website or via email/phone.   Upon award, each National IPA member will be provided with information about the account team that  is dedicated to support them. Following a support plan for City of Mesa. A similar plan will be put  together to IPA members.     50       SHI realizes the need for timely information in order to keep projects moving forward. The first step will  be clearly defining SLAs that meet the needs of National IPA members. As requested, SHI has outlined  the following SLAs. If awarded, the SLAs will be reviewed and mutually agreeable standards established.        51      Email & Phone requests – Acknowledge with response within 2‐4 hours   Orders – Process orders within 24 hours of receipt  o Exceptions may apply when additional information is required    Pending request – Daily updates (every 24 hours)     SHI provides support to our customers between the hours of 8:00AM – 7:00PM in every time zone. We  are only completely closed on New Year’s Day, Memorial Day, Independence Day, Labor Day,  Thanksgiving Day, and Christmas Day. Support is available every other business day of the year. In  addition, your custom web catalog is available 24 hours per day, 7 days per week.  Problems are typically escalated to management for immediate review and action. Customers are  provided with a Path of Escalation, to ensure they can engage with management on any pending items  or issues which may arise. If customers are unable to locate their Path of Escalation, they can click on  the link at the bottom of all IAM email correspondences, which reads “How was my service? Contact –  Senior_Management@shi.com”.  This will also escalate all issues directly to Senior Management for  immediate action.  Once an issue has been escalated, management will set up a call to help get all affected parties on the  same page, and follow up with regular updates until resolution.   We are including a sample escalation path for City of Mesa.  Each IPA member would receive an  escalation path that includes their specific team information.        52       Escalation Point Responsibilities Response Time  Inside Account  Managers  Rob DiGiovanni, EJ  Williams, Jason  Mitchell  Day‐to‐Day customer service questions, such  as order placement, order tracking, quotations,  return authorizations, licensing questions, etc.  Within 4 business hours, with  at least status on resolution, if  not with the final resolution.  Account Executive  Amelia Jakubczyk  Overall management of the relationship  between SHI and the customer.  Has the  authority to take into consideration special  circumstances to make exceptions to SHI’s  general policies.  Within 4 business hours, with  at least status on resolution, if  not with the final resolution.  Inside Sales Manager  Corrin Bennett  Responsible for the management of the daily  activities of the Inside Account Managers.  Within 4 business hours, with  at least status on resolution, if  not with the final resolution.  Director Inside Sales  Manager  Yara Ismail  Management of the Inside Account  Managers.  Escalation point for any over‐all  quality concerns at SHI.  Within 8 business hours with  either status or resolution.  Regional Director,  Public Sector Sales  Alison Turner  Management of the Account Executives.  Has  the authority to approve contract terms and  conditions and to make exceptions as deemed  appropriate.  Within 8 business hours with  either status or resolution.  Senior Director of  Public Sector Sales  Denise Verdicchio  Executive authority to approve terms and  resolve issues.  Within 8 business hours with  either status or resolution.    SHI believes in regular and transparent communication with our customers. Our Account Executives  meet with the City of Mesa and individual contract users to review their business with SHI. During these  review meetings, we discuss purchase history, as well as the customer’s future plans.  With open  discussions, SHI can provide tremendous value in supporting future initiatives and will engage the  support teams as needed to meet the customer’s goals and objectives.  As part of our customer care, we encourage and actively solicit customer feedback. Our Director of  Quality, Bernadette Hunsikcer, collects customer comments and concerns to ensure they are addressed  and resolved as quickly as possible. SHI sends an annual customer satisfaction survey to request  feedback on our performance and the services we provide. By soliciting feedback, we remain in touch  with our customers’ needs.  We have a World Class Support Incentive Program for IAMs who receive positive feedback from  customers and partners.  IAMs who receive three compliments will receive $150 to their net pay with  unlimited payout potential. Compliments can be sent through the Senior_Management@shi.com email  or in any form directed at complimenting the IAMs service and support.      53     SHI can hold inventory of products in our warehouse, at no additional charge to the customer, for thirty  days.  After the initial thirty days, SHI may charge a small inventory fee. We may also require the  customer to sign a purchase guarantee. All of these factors would be discussed up front with the  customer before a purchase is made.  11. Describe how your company will assist customers in navigating OEM warranty process. SHI Response:  SHI will pass on any included Manufacturer warranties at the time of purchase. In addition, we will  educate the end‐user on any and all available extended warranty, maintenance, and service programs at  the time of quote.  Should the customer have the need to use the warranty SHI can facilitate the  interaction between the customer and the OEM. We will gladly provide any contact information, process  information, or assist in escalating with the OEM when necessary.  SHI can offer 3rd party, non‐manufacturer warranties that will allow our customers to extend the life of  mission critical devices with world‐class service and support.    12. Describe how your firm will notify customers of new products. SHI Response:  In addition to aggressive pricing, will provide National IPA members with product and technology  expertise to help ensure that you stay up to date on the latest technology changes, product roadmaps,  product transitions, and current manufacturer programs. As a successfully functioning partnership is  based on communication, SHI proposes scheduling regular review meetings with each customer.  The  purpose of these meetings will be to discuss all aspects of the partnership including but not limited to  the following:    Product Roadmaps   Forecasting of Product Requirements    Future Product and Services    Industry trends and updates  SHI Account Executives are supported by our Hardware and Advanced Solutions and Software Licensing  teams which consists of vendor‐dedicated subject matter experts. This team not only ensures that we  are delivering the most up to date product and technology information in a timely manner but also that  we are providing access to the best pricing, programs, and levels available to National IPA members.     For example, a current trend in education is creating learning spaces that support creativity,  collaboration, innovation, and critical thinking. Based on this trend, we provide ongoing facilitation to  our sales teams around the latest technology specific to education. Our Account Executives then bring  this information to their clients and help engage them in a conversation about how they can make use  of this technology in their environment. We bring internal or partner‐based resources to their doorstep  to talk over product roadmaps and transitions and how these may impact future plans.     We publish content frequently. Our widely read blog (blog.shi.com) features articles about Public Sector  focused technology, software publisher licensing programs, and more. Links to some recent blogs are  included below:  https://blog.shi.com/solutions/3‐educational‐technology‐resources‐help‐new‐teacher/     54     https://blog.shi.com/software/what‐education‐customers‐must‐know‐about‐adobes‐licensing‐changes/  https://blog.shi.com/software/microsoft‐extends‐office‐365‐proplus‐education‐benefits/  https://blog.shi.com/hardware/classroom‐upgrades‐high‐tech‐teachers/  We have worked in conjunction with the Center for Digital Government and the Center for Digital  Education to publish relevant articles such as a Guide to Choosing Digital Content and Curriculum, as  well as sponsoring other quality content like the Top 10 Higher Ed IT issues of 2017.  http://www.centerdigitaled.com/paper/Guide‐to‐Choosing‐Digital‐Content‐and‐Curriculum‐41458.html  http://www.centerdigitaled.com/higher‐ed/Top‐10‐Higher‐Ed‐IT‐Issues‐of‐2017.html  SHI can and will add relevant content to the website on a regular basis. This may include product  announcements, product end‐of‐life information, support information, or promotions, webinar or  special event invitations, and other industry news that will be of interest to the IPA/City of Mesa. SHI will  notify IPA of any information before it gets posted.     Please see screen capture below for a sample of our News and Announcements page.        In addition, SHI currently provides seminars and workshops to our public sector customers across the  country. We will be pleased to do the same for National IPA and their members. In all cases, we will  work with you to determine the right topics, venue, timing, and participants. Some examples include:  Manufacturer Table Show – held annually, SHI will bring in manufacturers that currently do business  with the State as well as emerging partners for a day of education and demonstration.        55     Technology Roundtables – this event brings together Public Sector IT Professionals and leading  manufacturers to discuss current and future technology and how it can be used to solve problems or  innovate solutions for the future.  Webinars – SHI frequently holds webinars for our customers. Topics range from Software Volume  licensing (Microsoft EA, VMWare ELA), specific product features, and more broad solution areas.  Workshops – typically done in a half day, a workshop is meant to educate customers on all the aspects  of a particular solution.  One recent example is SHI’s Video Surveillance Workshop, held in 13 cities  across the country, in which we discussed challenges, technology, policy, and future considerations.  Summits ‐ SHI holds technology summits at our corporate headquarters in Somerset, NJ. Current  summits include mobility and software asset management (held bi‐annually). National is welcome to  attend these at no additional charge.      Custom Events ‐ SHI will help IPA and City of Mesa coordinate any event that they believe will be  beneficial to the participating entities.     13. Describe how your company will assist and support customers when their standardized is reaching EOL (end of life). SHI Response:  We understand that a standard reaching end of life requires careful planning to avoid disruption. Our  customers receive end of life information early via regular and transparent communication. Once a  standard is identified as reaching end of life, we will meet with the customer to discuss options. These  may include extending warranty through a third party and continuing to use the product, conducting a  buy out and using those funds towards procuring new product, or transitioning/migrating to a new  solution.  We will engage the customer in a strategic planning session to offer all options and help  determine the best course of action.     At times, having a product reach end of life presents a unique opportunity to save money. Your Account  Team will monitor the lifecycles of your standard hardware. When a product is coming to End of Life, SHI  can often purchase the products at substantially lower pricing. Your Account Team will bring these  opportunities to the attention of the National IPA customer in order to determine the timing of the  specials versus the timing in which the customer is looking to purchase the products.  SHI can hold  inventory for these products in our warehouse, at no additional charge to the customer, for thirty  days. After the initial thirty days, SHI may charge a small inventory fee.  We may also require the  customer to sign a purchase guarantee. All of these factors would be discussed up front with the  customer to help them make the determination whether an end of life buy‐in is an appropriate cost  saving measure.        56     14. Describe if technical support questions are handled the same way as a customer service request? If not, describe the type(s) of technical support available, the location of technical support, and the hours of technical support. Is it the intent to use employees of your company or will this be an outsourced function? SHI Response:  Technical support is not handled in the same manner as customer service. Typically, technical support is  handled directly by the OEM/Publisher. In these cases, SHI can assist in getting the customer connected  to the right person at the OEM/Publisher.    SHI does offer technical support/helpdesk services for an additional fee.  Customers don't always have, on staff, the expertise needed for the spike in the number of calls to their  Help Desk when deploying new technologies or upgrading versions of existing technologies. For many,  having the option to funnel that increase in calls to a turn‐key solution provided by a third party is much  more attractive than increasing internal head‐count.  In addition, outsourcing this service can increase overall productivity. Having a resource that can not  only answer problems but can also provide end users with user‐based tips and tricks can decrease  employee downtime.  SHI Technical Support provides your customers Tier 1 Help Desk support for inquiries related to  technology deployment, everyday usage and upgrades covering multiple manufacturers. In addition to  everyday applications such as Office or Acrobat, this support can be expanded to cover a customer's  custom applications. If needed, SHI Technical Support has the ability to provide higher technical and  engineer level support for those same technologies.  SHI offers:   Phone support with a live technician or engineer   Options for 8x5 or 24x7 support coverage   Knowledge support for all software publishers as defined in the supported products list   Optional components that include training modules, knowledge‐based websites, engineering  time and health checks.  Describe what other services you offer that would be applicable to this contract (e.g., cloud, services, maintenance, implementation, design, analysis, training, repair, etc.) SHI Response:  Customer Innovation Center  The SHI Customer Innovation Center is an 8,000 square‐foot secure data center that lets your team  evaluate and compare how hardware, software and cloud technologies from various OEMs and  providers will perform in your environment.  Compare state‐of‐the‐art equipment from SHI’s partners ‐ or ship us your own ‐ to design architecture  and test proof‐of‐concepts while collaborating with your own staff or IT industry experts.  SHI has worked with some of our top partners to help make our vision of an independent, multi‐vendor  environment with technologies from leading manufacturers a reality. Manufacturers’ products that are     57     part of the SHI CIC today include: HP, Dell, EMC, Cisco, NetApp, Veritas, APC, Tripp Lite, Eaton, Pure,  Tintri, Nutanix, Lenovo, VMware, Microsoft, Brocade, qLogic, Emulex.  Customers can participate in:   Demonstrations – evaluate product features and functions in a real working environment   Bake‐offs – compare products under workloads   Proofs‐of‐concept – Test next generation equipment without disrupting your datacenter   Hands‐on training – get a deep dive walkthrough from our solution architects.  The CIC is staffed with trained team members who are knowledgeable on the products and the  solutions. As technology advances and changes, the SHI CIC will follow ensuring that we have the  products and demonstrations that our customers want to see.   When IPA/City of Mesa is ready to evaluate solutions and products, whether it is Virtualization, Cloud  Integration, or the latest EUC products, your dedicated account team will work with you to schedule  time and develop a plan with the CIC so you can see the best options in the industry, and choose the  right solutions based on observation, not speculation.  In addition, we coordinate Executive Briefing opportunities for customers as desired. In these cases, we  partner with the manufacturers of interest and hold the briefing at their location. For instance, we have  hosted customers at the Lenovo’s Briefing Center in Raleigh, North Carolina, Microsoft’s Briefing Center  in Seattle, Washington, and Dell’s Briefing Center in Austin, Texas.     Cloud Solutions  Organizations are moving the cloud faster than ever. Identifying workloads, improving cloud service  levels and optimizing cloud performance are all challenges, and SHI has created a variety of services to  assist with this transition.       58       Software Maintenance Administration/Renewal Management Services   SHI has built a tool in response to our customers’ needs around expiring warranties, support  agreements, and product maintenance programs. The Renewal Organizer, available as a value add to SHI  customers only, and at no additional cost, compiles your technology renewals in a centralized, rolling 36‐ month timeline for simplified budgeting and renewal management. The tool is delivered via an  interactive on‐line portal, with 24/7/365 availability. Each renewal box will contain information relelvant  to that renewal such as:   Contract start date   Contract end date   Contract Number   Customer PO.  Through this tool we are able to offer National IPA/City of Mesa proactive management of maintenance,  warranty, and support plans will safe both time and money. All products purchased through SHI with an  expiration date of any kind will automatically be loaded into the Commonwealth’s renewal organizer.  Quotes will automatically be sent to the Commonwealth 90 days before the expiration of the service.  IPA’s and City of Mesa’s account team will them actively work with the end user to go over options.  Regular follow up will continue until the PO is placed or the end user indicates that they are no longer  interested in renewing the maintenance or support agreement.  Following is an example of what a customer can expect to see using the PRO Timeline:     59       In order to be able to provide this level of detail for our customers, SHI collects the maintenance  expiration date in our order entry system each time a customer purchases product maintenance.   Through our Renewal Organizer, SHI provides visibility and clarity around renewals to each agency, thus  complementing the workflow of their own software and hardware renewal lifecycle efforts.  These  efficiencies support our customers’ existing operating processes, and in some instances SHI’s Renewal  Organizer service even replaces or fills a void in our customers’ existing workflows, freeing up our  customers’ time for other activities.  If City of Mesa takes advantage of our PRO timeline it will receive  the following benefits:   Improved management of technology and renewals, as SHI provides proactive notification of  maintenance renewal periods for all relevant technologies in your environment   Improved budgeting and ordering efficiencies   More support (road maps, licenses options, potential for volume purchasing)   Reduce overall maintenance spend by avoiding unnecessary costs associated with selecting a  less‐than‐ideal buying program or pattern (e.g., contractual vs. transactional buying programs,  individual purchases vs. leveraging cumulative spend, etc.)   Reduce overhead (makes it much easier to manage multiple suppliers)   Simple setup, SHI guides customers through the onboarding and acquisition stage   No cost and no risk to initiate the service   Assistance with negotiating with the manufacturers to co‐term maintenance or warranty  contracts, when permitted by the manufacturers’ programs  15. Describe options for leasing and financing and the various payment methods accepted. SHI Response:  SHI offers flexible leasing plans for hardware and finance plans for software to ease upfront costs and  increase IT flexibility. More and more customers are moving away from owning IT and moving into the  business of IT. SHI financing can help them seamlessly make this shift. SHI has an internal leasing and  financing group which allows us to be extremely flexible in terms of payment options and paperwork.      60     We can accommodate almost any payment method/schedule and will work with the customer to  construct a plan that best suits their needs.        61     TAB 3 ‐ PRICING FORMS.    The cost portion of the Response should include the following criteria: 1. Provide price proposal as requested on the Pricing Document (Attachment A – “National” TAB) attached herein. In addition to indicating your proposed discounts on the Price Page, you must also apply those discounts to the sample items listed in the City’s Market Basket listed in Attachment A. 2. Propose and provide details of additional discounts or rebates for volume orders, special manufacturers’ offers, free goods program, total annual spend, etc. SHI Response:  SHI has included the necessary pricing forms as a separate document to our response.   All discounts articulated here represent the minimum discounts off SHI Advertised List Price; actual  discounts may be significantly higher.  The comprehensive SHI offering for National IPA consists of all hardware, software, and services  available to our customers in the public sector marketplace. The discount structure offered to National  IPA is based on our Advertised Price List which can be located on www.shi.com.  In many cases, SHI  Advertised List Price already reflects a substantial discount off of Manufacturer Published List  prices. Given the breadth of manufacturers and products that SHI offers, there will be many  opportunities for SHI to secure additional discounts for eligible contract users. We work to provide your  contract users with the most advantageous pricing available, above and beyond the minimum discounts  offered, whenever possible.  SHI prides ourselves on being honest and transparent with our customers especially when it comes to  pricing. We base our discount structure on SHI Advertised Price as this is a verifiable source.  We do not  inflate this Advertised Price for RFPs in order to make our discounts appear larger. Other vendors may  use MSRP or Publisher List price, which can be unreliable as a pricelist may not exist for every product, a  pricelist can change from day to day, and a pricelist can be inconsistent depending on where you source  the information from. When a vendor manipulates contract language in this manner or uses a loose  definition of cost, it results in an increase in profit for them and higher prices for customers.   If awarded, SHI is willing to provide complete transparency over the life of the contract as it relates to  our costs and what we charge National IPA customers.  In addition, SHI welcomes the opportunity to discuss our price offering for National IPA in more detail,  and we are willing to offer alternate pricing models at your request.       62     TAB 4 ‐ QUALIFICATIONS. (ABILITIES, EXPERIENCE AND  EXPERTISE).    The following information should be included: 1. Provide a brief history and description of your firm. Discuss firm’s national presence in the IT solutions industry. SHI Response:  SHI has provided an answer to this question in the Attachment D portion of this response.  2. Provide the total number and location of sales persons employed by your firm. SHI Response:  SHI has provided an answer to this question in the Attachment D portion of this response as it relates to  our capabilities to support a National Contract. The City of Mesa has a dedicated account team that  includes the following team members:  Account Executive ‐ Amelia Jakubczyk: Amelia develops relationships with representatives throughout  City of Mesa in support of all the City’s IT needs. Amelia will conduct face‐to‐face meetings to  understand the City’s needs; will establish a customized service and support plan; and will construct a  pricing strategy critical to the City’s development. Amelia will respond to inquiries for resolution within 4  business hours; she has worked in this area for over 5 years.  Regional Director, Public Sector West – Alison Turner:  Alison coordinates the efforts of the Account  Team in direct support of the City of Mesa and is the point of contact for any issues that arise and need  escalation. With over 20 years in the industry, and with experience working in Education and  Government during that time, Alison has the expertise and customer focus necessary to implement an  exceptional Information and Technology Solutions and Services contract for the city. Alison will respond  to inquiries within 8 business hours.  Inside Account Managers (IAMs) — Rob DiGiovanni, EJ Williams, and Jason Miller:  SHI’s Inside  Account Managers maintain direct relationships with the customers and have the responsibility of  ensuring customer satisfaction. Functional areas such as pricing, availability, order entry, tracking,  returns, product information, and expediting of orders are an integral part of their daily activities. They  execute the plan established by the Account Executive for a customer.  There are three Inside Account  Managers mentioned above who support City of Mesa; they all have experience working exclusively  with Public Sector accounts, and specific experience with Maricopa County.    These three Inside Account Managers report to Corrin Bennett, Inside Sales Manager. Corrin has been  with SHI for eight years, and has been both an Inside Account Manager and a Sales Operations Manager.  Customer service is very important to Corrin, and she is always happy to assist the team as needed.        63     3. Provide the number and location of support centers (if applicable). SHI Response:  SHI has provided an answer to this question in the Attachment D portion of this response.  4. Provide Public sector sales figures for 2014, 2015 and 2016 and the percentage mix of hardware, software, and services SHI Response:  SHI has provided an answer to this question in the Attachment D portion of this response.  5. Please submit your FEIN and Dunn & Bradstreet report. SHI Response:  SHI has provided an answer to this question in the Attachment D portion of this response.  6. Provide a summarization of your experience in performing work similar to that outlined in this solicitation. SHI Response:  Founded in 1989, SHI International Corp. is a global provider of technology products and services. Over  the past 28 years, SHI has evolved from a $1 million “software‐only” regional reseller into a global, full  lifecycle provider of technology, services, and solutions. SHI is ranked 9th among CRN's Solution Provider  500 list of North American IT solution providers. With over 3,500 employees worldwide, SHI is the  largest Minority and Woman Owned Business Enterprise (MWBE) in the United States.  SHI International Corp. is headquartered in Somerset, New Jersey and has 30+ offices worldwide.  As a  privately held company, we have remained under the same ownership since 1989, and most Vice  Presidents and Managers have been dedicated to SHI for more than 15 years.    SHI has been focusing on the specific needs of our Public Sector customers for over 20 years. Our first  state‐wide contract was awarded in 1994; since then we have continued to build and focus on the  specific needs of public sector customers.   Today our Public Sector business unit consists of over 300 team members who are dedicated specifically  to public entities across the country, allowing SHI to build connections and partnerships with each entity  and to dive deeply into the infrastructure, procurement, and regulation obstacles that they face. For  2016 SHI reported earnings of $7.5B, which demonstrates 15% growth over 2015.  We are projecting  earnings of $8.2B for 2017 continuing to show substantial YoY growth.  SHI has a financially strong and  stable business model that has proven itself over time. Providing a compelling value to our entire  customer base, SHI is able to offer the most advantageous pricing models of our top 4 competitors,  while simultaneously maintaining our profitability with the lowest overhead cost structure in the  industry.  SHI has had the pleasure of serving the City’s software and product needs since 2011. Our relationship  with the City began with the award of the previous WSCA SVAR Contract and has continued since using  other cooperative contracts. SHI’s value to the City comes from our extensive expertise in understanding  complex licensing, determining the best products for the City’s needs, customer service and overall ease  of use. To date the City has spent $6.6m with SHI, mostly in software and some miscellaneous products.      64     We value the relationship with the City of Mesa and look forward to serving the City’s needs for years to  come.  7. Provide a minimum of three references for which your firm has provided the same solution (please include company name, address, contact person, phone number, email address and dates of service). References from other public agencies, particularly municipal governments, are preferred. SHI Response:  SHI has provided references on Attachment C, which can be found later in this response.  8. Provide resumes and three references (preferably from the public sector) for the primary customer service representative(s). Resume(s) shall include their title within the organization, a description of the type of work they would perform, the individuals' credentials, background, years of experience and relevant experience, etc. References should include the contact’s name, phone number, email, position, organization, and the work which the Offeror performed for the reference. SHI Response:  Immediately following are the resumes for the SHI team that is dedicated support for the City of Mesa. If  necessary, SHI can provide specific account team information for IPA customers.  SHI is providing the following three references for Amelia. Should additional information be needed or  references for other team members be required, SHI will be happy to assist where possible.  Arizona Department of Administration – State of AZ Deputy State Procurement Administrator  Terri Johnson  602‐542‐9122  Terri.johnson@azdoa.gov  Amelia worked closely with Terri Johnson as the former Contract Administrator for the WSCA SVAR  Contract. Amelia had regular cadence calls/onsite visits with Terri to conduct quarterly reviews, provide  industry knowledge and assist with any customer related inquiries/challenges. From Terri, “Amelia – was  the original point of contact regarding the SVAR contract for AZ starting in 2011.  Through her initiative  and the focus of SHI corporate, Amelia was able to assist the state through a seamless transition from  one contract set to another.  Amelia personally took the time to establish points of contact and  customer relationships within the State agencies.  SHI corporate was instrumental in hiring additional  staff as needed to ensure full coverage for the state and its cooperative members.”    Arizona Department of Transportation Steve West, CIO  C: 602‐690‐4209  swest@azdot.gov  Amelia has worked with Steve West throughout his tenure within Arizona Government, most recently  with the Arizona Department of Transportation. Projects include a large HP hardware refresh,     65     discovering and managing large license agreements and acting as a trusted advisor in the reseller  community.   State of Nevada, Nevada State Purchasing Marti Marsh, Purchasing Officer  775‐684‐0180  mmarsh@admin.nv.gov  Amelia has worked closely with Marti Marsh of the Nevada State Purchasing Office since 2011. During  this time Amelia served as the main point of contact on multiple statewide contracts Marti is responsible  for: Former WSCA SVAR, NASPO SVAR, NASPO HP, Lenovo, EMC, NetApp, Cisco, etc.  Immediately following are resumes for the City of Mesa Team. Should additional information be needed,  SHI will work to provide where appropriate.     66          67          68          69            70          71       9. Provide information regarding if your organization ever failed to complete any work awarded. SHI Response:     72     We are proud to report we do not have any failed projects. With each project we strive to do our best,  and although we realize perfection is rare, we work closely with our customers to review and discuss  how we can improve our processes, products, and services to help ensure our continued evolution and  success.  10. Provide information regarding if your firm, either presently or in the past, has been involved in any litigation, bankruptcy, or reorganization. SHI Response:  SHI has not been involved in litigation, bankruptcy, or reorganization.       73     TAB 5 – TECHNOLOGY.   1. Describe your website and the ease‐of‐use for customers to perform the following types of tasks: a. to search for products b. to find alternate products (if a certain product is not available) c. to perform side‐by‐side price comparison of products d. to order products e. to track order status, to include backordered items f. to determine when an item was received and who received it g. to restrict/block the ordering of certain line items and to restrict/block the ordering of groups h. to create approval paths/levels for orders, to include creating an approval path for restricted items i. to create a “favorites” list or subscribed purchases other personalized list of frequently ordered items j. to create a “shared” list for an agency to use k. to obtain online customer service l. to receive online training m. to accept credit card payment (and describe the level of data offered; also describe your security measures for credit card orders) n. to track their budget for purchases o. to generate reports SHI Response:  SHI’s ecommerce site was developed in house. As such, it is one of the most flexible tools in the  industry. In addition, we offer approval routing that allows for one user to create and send a quote to  another user for approval. Also, quotes that are requested via email, fax, or phone can be published by  the Inside Account Managers to the ecommerce site for visibility and future reference.  While the master catalog will be available to all participating entities, each individual customer under  this contract will also have the opportunity to request their own customized product catalog based upon  any customer‐specific needs. Custom catalogs are built based on input from the customer’s IT standards  groups, via the definition of base systems and permitted options, and licensing programs.  SHI.COM Public Sector catalog (https://www.publicsector.shidirect.com/)  is a public walk‐up site and  requires no password. It has been available to the public for over 16 years. SHI hosts a public page for  each individual state and vertical. In addition to the public site link, SHI will provide City of Mesa a  custom e‐commerce site. This personalized, password‐protected site is accessible only to authorized  users, determined by City of Mesa. The City’s web portal will display only the products and other  website requirements that are part of this contract.  SHI’s web‐based procurement platform provides the latest in functionality and the best in user‐friendly  interface. SHI.COM also offers functionality designed specifically for business‐to‐business. Whether used  as a stand‐alone procurement system or integrated with your own current procurement systems,     74     SHI.COM provides the functionality and customized user experience needed to manage IT procurement  workflow.  If awarded, SHI’s web administration team will work with the key stakeholders at City of Mesa to  integrate with any e‐Procurement catalogs whether state‐hosted or punchout (roundtrip).  This process  typically takes about 1 week.        Above is a sample screenshot that shows what the City’s custom e‐commerce site might look like. Upon  receipt of contract, your site will be configured to fit all of the contract requirements. If the City wishes  to view this site please go to https://www.publicsector.shidirect.com/, select “Sign in” on the top right  hand side of the public site. A drop down box will appear. Click “Register” to be directed to the new user  registration page seen below.       You will select “Yes” when asked if you have a token and access key.  Your token is 90949 and your  access key is MU5XB2J3PL.  Once you enter these you will be asked to create a user name and  password.  Once complete you will be directed to the site. Today the site is in development and as such  only shows sample products and pricing. Upon award, we will work with you to create a custom catalog,  add appropriate contract numbers, and the additional content desired by the City.  The SHI Ecommerce Specialists are available to provide training to those employees authorized to access  contract pricing and information at SHI.COM.  SHI can schedule trainings based on the customer’s level     75     of access to the site. Upon award of contract, your Account Executive will work with the customers to  determine the program and schedule that would work best for them.     Your Catalog  With thousands of manufacturers represented, your product catalog is fully customized to reflect  contracted products and pricing available through SHI, as well as special pricing programs for which you  are eligible, such as licensing programs or other volume programs. The catalog can be as broad or as  narrow as you need to fit your needs.       After log on, the customer can search by using a variety of criteria:   Keyword search   Browse manufacturers   Browse by product category and type     76         Commonwealth Standards         77              78     View Product Details            79     Add Products to the Shopping Cart  From here, a user who has not yet logged in can manage the items in the shopping cart, continue to  shop, or finalize the purchase (if the user clicks “checkout”, SHI.COM requires the user to log into the  system).  If the user has logged into SHI.COM, he is presented with the additional options to save the  items as a quote or to send the shopping cart to your SHI Sales Team to obtain an “official” SHI quote.          80     Saved Quote  The saved quote remains valid on SHI.COM for thirty days.  At any time within those thirty days, the user  can change/add to the items saved in the quote or send the contents of the quote (with saved pricing)  back to the shopping cart to finalize the purchase.            81     Configuring a System  The process of selecting and configuring a product begins when the user clicks a configurable system in  Search Results or within featured products.  The systems are displayed with a picture, summary of its  characteristics, and price before adding options. SHI.COM presents all products in the same fashion,  with consistent groupings of options by category.             82     Customize the System  Prior to adding the product to the Shopping cart, the user is brought given the option to configure the  base system with options designated as acceptable by the City of Mesa. The user simply clicks on the  options he wants included in the final product.  As options are selected, SHI.COM updates the general availability of each configuration based upon the  availability of each component. As the user adds and removes components to the base system, SHI.COM  calculates an estimated time to ship to the user. SHI.com also tells the end user what selected  component is contributing the longest lead‐time. This is designed to allow the end user to make  informed decisions based upon their particular needs: for some users, getting a useable system quickly  may be more important than obtaining a particular option or upgrade that would delay the production  of the machine.      Checkout Process  SHI provides an easy to use Checkout Process that can be customized to your specifications:   Users can save addresses to an address book for easy selection of the appropriate ship‐to  address   Custom Data Collection—we will create fields where we can collect the information you need  about the purchases your employees make—department, project code, cost center, etc.   For our Terms Customers—enter a PO number and for our Credit Card Customers—use the  security of PayPal to complete your purchase     83      See the freight and estimated taxes based on the shipping address entered          If additional information needs to be captured with each hardware purchase. Therefore, SHI has  designed an “interview page” in which SHI can collect all of the pertinent information. The interview  page will be completely customized to collect the information as required by the City of Mesa.  If  additional information isn’t required, this step would be skipped in the order process.         84         When the user has completed the interview page, SHI will then request the ship to address and any  additional Email addresses for employees who should receive notices regarding this order (i.e. order  acknowledgment, ship notification, etc.)  Approval Routing  Only authorized users will be able to submit orders on SHI.com.  However, if the City of Mesa would like  to allow agencies to request products, but not to place orders, SHI has support for approval routing  through SHI.com. Using our approval routing, end user can select the products they wish to purchase  and submit their selection as a requisition. With support for as many levels of approval routing as  required, SHI.com will forward the requisition to the appropriate people to obtain approval.    Once the order is approved, the requestor (and anyone else listed to receive notices) will receive an  Email stating that the requisition has been approved and will be processed at SHI.  At this time, the  order will upload into SHI’s internal order processing system.    Order Status  Obtain order status information and tracking details for the orders that you process with SHI. SHI.com  provides a wide range of search options to quickly and easily locate the order in which you are  interested.       85     The following screen shot shows the order search results.      The following demonstrates the tracking details available.         86      Within the City’s dedicated page, authorized users can:   Save/retrieve a price quotation using a state agency supplied unique quotation identifier(s). The  agency should be able to save the price quotation as a .pdf document   Modify a previously saved price quotation, including adding additional products, changing  product quantity, removing or deleting products, and “refreshing” product prices   Re‐save price quotation following modifications    Print price quotation   View quotes that were originally requested via email, fax, or phone and created by the Inside  Account Team.  SHI provides online order status and reporting for all orders placed with SHI, whether the orders are  submitted online or directly to the Account Team. Access to the order information is controlled by the  permissions assigned to each individual user name. The order data is tied to a specific customer account,  and the individual accounts are then grouped together to accommodate reporting groups that match  the customer’s organizational hierarchy.  For example, individual departments can be grouped with  cities and counties to allow reporting across an entire local government entity or an entire State.   Additionally, SHI tracks all contract data at the highest level of the hierarchy, allowing us to provide  reports across the entire City of Mesa contract.    In short, SHI makes it simple for all contract users to access the reporting information that they need.   Whether the reporting requirement is for a single agency looking for the history of their purchases only,  or if the City of Mesa that wants to understand statewide purchasing trends, the process to access that  report is fast and intuitive.  The following lists the standard fields that are available within a standard, detailed report today via the  State’s ecommerce site today:  Customer Name Manufacturer Name  Manufacturer Part Number  Product Description  Version Operating System  Media Language Product Type  License Program License Pool License Level  License Point Value Maintenance Term Maintenance Time Remaining  UNSPSC Number UNSPSC Segment UNSPSC Family  UNSPSC Class UNSPSC Commodity  Order Date  SHI Order Number Invoice Number Ship Date  SHI Part Number Quantity Unit Price  Extended Price Customer PO Ship to Company  Ship to Address Ship to City Ship to State  Ship to Zip Code        87     In addition to the data fields above, SHI will create customized data fields for any customer who wishes  to capture additional information, and the customer would then have access to reporting based upon  those additional fields. This custom capability is helpful for tracking purchases, expenditures, and  chargebacks. SHI works with each individual account to understand reporting requirements and to  ensure we continue to meet and exceed those requirements.  The City of Mesa and IPA can identify Procurement Officers or others that can  be granted a higher level  of access, allowing them to run reports and view activity across authorized users.  The level of access any user has is determined by the permissions assigned. The Account Teams and SHI’s  Web Administration Team works with the customer to understand their needs for user authorization and  access to information. Those users who only need access to their own purchase history are limited.   Likewise, those users who need higher level will have the appropriate access rights.  The SHI eCommerce Specialists are available to provide training to those employees authorized to  access contract pricing and information at SHI.com.  SHI can schedule trainings based on the customer’s  level of access to the site.  Upon award of contract, David Rounds will work with the customers to  determine the program and schedule that would work best for them. SHI will also work with the City of  Mesa to define and establish an Employee Purchase Program. We will create a separate and secure site  for employees to purchase products at the State contract prices.    2. Describe additional functionality offered by your website. Provide screen shots, a demo “CD/jump drive,” a demo URL, a manual, etc., or any other format that will aid the City in our evaluation of your website. SHI Response:  If the City wishes to view this site please select “Sign in” on the top right hand side of the public site,  https://www.publicsector.shidirect.com/  A drop down box will appear. Click “Register” to be directed  to the new user registration page seen below.       You will select “Yes” when asked if you have a token and access key.  Your token is 90949 and your  access key is MU5XB2J3PL.  Once you enter these you will be asked to create a user name and  password.  Once complete you will be directed to the site.  Today the site is in development and as such  only shows sample products and pricing. Upon award, we will work with you to create a custom catalog,  add appropriate contract numbers, and the additional content desired by the City.     88     The SHI Ecommerce Specialists are available to provide training to those employees authorized to access  contract pricing and information at SHI.com.  SHI can schedule trainings based on the customer’s level of  access to the site. Upon award of contract, your Account Executive will work with the customers to  determine the program and schedule that would work best for them.    3. Describe any national awards and/or other recognition that your website has received. SHI Response:  While we take pride in the design and usability of our website, our primary focus is always on  the needs of our customers rather than on external recognition. With that in mind, we are  extremely proud that this year alone we have won 10 awards for exceptional service in three  distinct categories: partnership, supplier, and employer – including the prestigious Citi Lean  Partner Award and Microsoft US Public Sector 2017 Partner of the Year – largely in part because  of the efforts and dedication our team puts toward our public and partner/procurement  websites. Our success as a partner in the Public Sector, in fact, stems from the personalized  procurement websites, standard with most SHI contracts, which allow authorized end‐users a  vast selection from standard configurations and peripherals, as well information to ensure  successful installations. These custom, procurement websites provide customers with all  service catalogs, approved hardware configurations, and inventory databases, which in turn  allow our customers to procure the best products and product support for their needs.  4. Describe the hours your website is available? What are your hours of downtime, such as for system maintenance? SHI Response:  The website is available 24 hours a day. Downtime is minimal and if a major system repair is necessary  SHI works to schedule it at a time that will be of least inconvenience to our customers. We will also  notify customers of any planned downtime in advance.  5. Does your website offer real time product availability? SHI Response:  Yes. Please see the information provides above regarding our website for a complete overview.  6. How does your company leverage your website to inform customers of the additional savings that may be available? SHI Response:  SHI can customize our web page to include any information that National IPA/City of Mesa would like to  see. In this case, we can publish additional savings opportunities for specific products on the home page  of the catalog or highlight products that have savings opportunities within the catalog itself.    SHI can and will add relevant content to the website on a regular basis. This may include product  announcements, end of life information, support information, or promotions, webinar or special event     89     invitations, and other industry news that will be of interest to City of Mesa.   SHI will notify City of Mesa  of any information before it gets posted.  The contents of SHI’s web site and the catalog are kept up to date using data feeds from our suppliers.   We make daily updates to product information, availability, and pricing; ensuring that contract users are  always accessing the latest products and at the correct price.  7. Describe the types of email confirmations that your website generates. What events trigger an email going to the customer? SHI Response:  SHI acknowledges this requirement and can comply.  SHI will acknowledge all orders received within 2 hours of receipt. All orders will be placed within 24  hours of receipt.  Upon placement, the end user will receive an order placement acknowledgement via  email. A sample of that is included below.  We can customize the information on the order  acknowledgement email and can include any and all information required by the State.       90     Describe the registration process to set up new customers for your online ordering process. Is self‐ registration available? If an agency does not want self‐registration, are you available to assist in the registration process? SHI Response:  Yes self‐registration is available. Customers can go to https://www.publicsector.shidirect.com/ and then  follow the instructions below.   A customer will select “Sign in” on the top right hand side of the public site. A drop down box will  appear. Click “Register” to be directed to the new user registration page seen below.       If a customer has token, they can enter it. If not then when they select No, they will be taken to another  site to register. Once you enter, you will be asked to create a user name and password. Once complete  you will be directed to the site.   The SHI Ecommerce Specialists are available to provide training to those employees authorized to access  contract pricing and information at SHI.com.  SHI can schedule trainings based on the customer’s level of  access to the site.  Upon award of contract, your Account Executive will work with the customers to  determine the program and schedule that would work best for them.    8. Describe if your website can be customized for an agency’s specific needs, such as placing our logo on your website, associating an agency blanket purchase order number on all orders, creating a bulletin board or other place to display customized messages, displaying approved configurations, naming certain fields (i.e., user defined fields, ability to include budget information), etc. SHI Response:  SHI acknowledges this requirement and can comply.  SHI can and will add relevant content to the website on a regular basis. This may include logos, product  announcements, end of life information, support information, or promotions, webinar or special event  invitations, and other industry news that will be of interest to the City. SHI will notify the City of any  information before it gets posted.  Please see screen capture below for a sample of our News and Announcements page.       91       9. Describe the types of online reporting that are available. Is customized reporting available? SHI Response:  SHI fully understand s your need for flexibility in reporting, as well as your need for reports from the  highest organizational level to the most granular. We have created our databases to remain flexible  enough to be able to incorporate any organizational structure and to provide reports on any level within  the organization. We begin with the most granular reporting level, this can be by department or local  government entity and then SHI groups the ordering units to the statewide level. In addition, we capture  the contract number, allowing us to run a report across all purchases made under the contract.  SHI has  the capability to collect customized data fields, which can be established at the State Level, the Agency  Level, and /or per individual customer. We are pleased to offer both standard and customized reports to  the State, in addition to the required reporting above.  All reports can be set up on a subscription basis and will be delivered automatically daily, weekly,  quarterly etc.  In addition, the State will have a dedicated account team that will be able to review and  discuss purchases and reporting whenever there is a need.  These standard reports provide an overview of your purchases from SHI. Our system allows for the  tracking of Customer Specific Fields, therefore we are able to generate these reports in many ways.  SHI  will provide these reports in any time frame that you require, and in one of three formats: detail of all  transactions, summary by part number, or summary by manufacturer name.     Spend by Manufacturer – summary of total dollars spent in period with one specific  manufacturer, all manufacturers, or a sub‐set thereof.   Spend by Product – summary of total dollars spent in period for one specific product, all  products, or sub‐set thereof.   Spend by Product Type – summary of total dollars spent in period for shrink‐wrap versus  licensing or by UNSPSC.     92      Spend by Organization, Enterprise, Conglomerate – again, each of the above reports can be  pulled based on a specific organization, enterprise or conglomerate    10. Describe your online return process (if available). SHI Response:  All damaged or DOA product will be taken back with no restocking fees.  If it has been longer than 30 days, SHI will make a best faith effort to accommodate the return.  SHI’s return procedure is simple. The customer simply needs to request a return by reaching out to the  Inside Account Manager or by navigating to the “Request Return Authorization Number” section of the  States website.  The IAM will take the necessary information and give the customer a Return  Authorization Number.  A shipping label or account number will be provided by SHI to the customer if  physical product is being returned. The end user then has to write the RMA number on the outside of  the box and ship it back. In some cases, SHI can arrange to have the product picked up.    Software Publishers may require that a letter of destruction be filled out and signed by the customer.  In  these cases, SHI would provide the form to the end user and request that they sign and send back.  SHI  will then hand le processing with the Publisher. Once the valid return is received by SHI we will credit  the invoice. If a replacement order is desired we will work with the end user to get that process started  before the return is received to increase efficiency.     93     Should the City have any issues or questions with a product return, they can contract their Account  Team for assistance.  For an online return, customers will access the Order Details page and complete the requested  information as shown in the screen shot below.    11. Describe any third‐party integration that you have successfully implemented. For example, is your website integrated with any third‐party procurement, financial, or purchasing/credit card systems? Is there a cost for these services? SHI Response:  Integration with eCommerce  SHI’s open architecture systems allow us to integrate with virtually any eCommerce platform, whether  through market leaders or a proprietary solution. Ariba, Perfect Commerce, PeopleSoft, SAP, and Oracle  are the most popular applications supported by SHI. In general, SHI can support systems that use cXML  (commerce extensible mark‐up language), or EDI (electronic data interchange) standards.  These  systems includes a wide range of applications and proprietary systems.  In addition, SHI supports the following Punch‐out types:     94      Ariba Punch‐out   Coupa   ePlus Procure+   Hubwoo   Oracle OAG  and cXML Punchout   Perfect Commerce Roundtrip   PeopleSoft Direct Connect   SAP OCI Roundtrip   Sciquest   Verian ProcureIT    12. Describe your strategic vision for your website – i.e., Is new functionality expected to be added? If so, describe the functionality and the timeline for implementation. How often is the web redesigned? As technology evolves (for example, new search engines are more robust), does your website evolve, too? Etc. SHI Response:  New functionality and technology is continuously being evaluated and updated as customer needs  evolve. The same holds true for our overall website design. SHI also listens closely to our customers and  their feedback regarding the use of the site and we strive to incorporate those changes.         95     TAB 6 ‐ OTHER FORMS.   The following forms should be completed and signed: 1. Vendor Information form 2. Exceptions & Confidential Information form 3. General Questionnaire form 4. Lawful Presence Affidavit 5. Respondent Certification form (Offer and Acceptance) 6. Respondent Questionnaire 7. W‐9 Form. All responses should include a fully completed, current W‐9 form. Failure to include the W‐9 will not disqualify your response, however the W‐9 must be submitted to the City prior to the execution of any contract pursuant to this Solicitation. (http://www.irs.gov/pub/irs‐ pdf/fw9.pdf) SHI Response:  Immediately following are the forms that were requested as part of this RFP. SHI agrees to provide any  additional forms if necessary as part of a final award.    5(48,5('5(63216()2506 9 5HTXLUHG5HVSRQVH)RUPV±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Upon award, we can provide any additional information as requested. Number of employees at location that would serve under a contract from the Solicitation: Provide names, contact and telephone numbers of three (3) organizations that have received similar services from your company. At least one reference should be comparable in size to the City’s proposed contract. Firm/Government Agency Name: Arizona State Procurement Office | State of Arizona Contact Person: Terri Johnson, Deputy – State Procurement Administrator   Phone: 602-542-9122 Address: 100 North 15th Avenue, Suite 402 Phoenix, AZ 85007 Fax: E-Mail Address: terri.johnson@azdoa.gov $ Value of Work, Supplies/Services and Dates Provided: $75m annually. Software, Annual Mainteance. Related Professional Services April 2011 – September 30 2016 Firm/Government Agency Name: University of Texas Systems Supply Chain Alliance Contact Person: Jason Stanford, Manager, Contracts Phone: 713-563-1021 Address: 7007 Bertner Ave. Houston, TX 77030 Fax: E-Mail Address: jpstanford@mdanderson.org $ Value of Work, Supplies/Services and Dates Provided: $20m annually. Computer Peripherals, Software, Storage, Servers, Networking equipment, and Related Services. July 1 2014, 5 year agreement with 3 year extension option. Firm/Government Agency Name: Maricopa County Materials Management Contact Person: Brian Walsh, Procurement Officer Phone: 602-506-3243 Address: 320 W. Lincoln St. Phoenix AZ 85003 Fax: E-Mail Address: walshb@mail.maricopa.gov $ Value of Work, Supplies/Services and Dates Provided: $6m annually. Technology Products including Software, Storage, Servers, Networking Equipment and Related Services. List any other information which may be helpful in determining your qualifications for a potential contract: At SHI, our success is based on a foundation of customer centricity and transparency. Our approach to Lee County School District will be based on these same values. Every member of the SHI team is dedicated to helping our customers and providing world class support throughout the entire engagement. SHI intends to provide the District with a seamless, transparent, and cost effective solution for all of your hardware, software, and service needs. Over the life of the contract, SHI will work to identify ways that the District can reduce your expenditures on IT software, hardware, and services. Technology changes fast, and SHI is a technology business partner that has demonstrated the ability to change along with it, through continued service evolutions and process improvement. SHI is excited about this opportunity to work with the City of Mesa and National IPA. We look forward to meeting with the review board to further discuss our capabilities. ATTACHMENT D Requirements for National Cooperative Contract To be Administered by National Intergovernmental Purchasing Alliance Company The following documents are used in evaluating and administering national cooperative contracts and are included for Supplier’s review and response. National IPA Exhibit A – NATIONAL IPA RESPONSE FOR NATIONAL COOPERATIVE CONTRACT National IPA Exhibit B – NATIONAL IPA ADMINISTRATION AGREEMENT, EXAMPLE National IPA Exhibit C – NATIONAL IPA MASTER INTERGOVERNMENTAL COOPERATIVE PURCHASING AGREEMENT, EXAMPLE National IPA Exhibit D – NATIONAL IPA PRINCIPAL PROCUREMENT AGENCY CERTIFICATE, EXAMPLE National IPA Exhibit E – NATIONAL IPA CONTRACT SALES REPORTING TEMPLATE National IPA Exhibit F – NATIONAL IPA ADVERTISING COMPLIANCE REQUIREMENT Requirements for National Cooperative Contract Page 2 of 26 NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT A- RESPONSE FOR NATIONAL COOPERATIVE CONTRACT 1.0 Scope of National Cooperative Contract 1.1 Requirement The CITY OF MESA, AZ (hereinafter defined and referred to as “Principal Procurement Agency”), on behalf of itself and the National Intergovernmental Purchasing Alliance Company (“National IPA”), is requesting proposals for INFORMATION TECHNOLOGY SOLUTIONS. The intent of this Request for Proposal is that any contract between Principal Procurement Agency and Supplier resulting from this Request for Proposal (hereinafter defined and referred to as the “Master Agreement”) be made available to other public agencies nationally, including state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit (“Public Agencies”), through National IPA’s cooperative purchasing program. The Principal Procurement Agency has executed a Principal Procurement Agency Certificate with National IPA (an example of which is included as Exhibit D) and has agreed to pursue the Master Agreement. Use of the Master Agreement by any Public Agency is preceded by their registration with National IPA as a Participating Public Agency in National IPA’s cooperative purchasing program. Registration with National IPA as a Participating Public Agency is accomplished by Public Agencies entering into a Master Intergovernmental Cooperative Purchasing Agreement, an example of which is attached as Exhibit C. The terms and pricing established in the resulting Master Agreement between the Supplier and the Principal Procurement Agency will be the same as that available to Participating Public Agencies through National IPA. All transactions, purchase orders, invoices, payments etc., will occur directly between the Supplier and each Participating Public Agency individually, and neither National IPA, any Principal Procurement Agency nor any Participating Public Agency, including their respective agents, directors, employees or representatives, shall be liable to Supplier for any acts, liabilities, damages, etc., incurred by any other Participating Public Agency. This Exhibit A defines the expectations for qualifying Suppliers based on National IPA’s requirements to market the resulting Master Agreement nationally to Public Agencies. Each section in this Exhibit A refers to the capabilities, requirements, obligations, and prohibitions of competing Suppliers on a national level in order to serve Participating Public Agencies through National IPA. These requirements are incorporated into and are considered an integral part of this RFP. National IPA reserves the right to determine whether or not to make the Master Agreement awarded by the Principal Procurement Agency available to Participating Public Agencies. 1.2 Marketing, Sales and Administrative Support During the term of the Master Agreement National IPA intends to provide marketing, sales and administrative support for Supplier pursuant to this section 1.2 that directly promotes the Supplier’s products and services to Participating Public Agencies NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT A- NATIONAL IPA RESPONSE FOR NATIONAL COOPERATIVE CONTRACT Requirements for National Cooperative Contract Page 3 of 26 through multiple channels, each designed to promote specific products and services to Public Agencies on a national basis. The National IPA marketing team will work in conjunction with Supplier to promote the Master Agreement to both existing Participating Public Agencies and prospective Public Agencies through: A. Marketing collateral (print, electronic, email, presentations) B. Website development and support C. Trade shows/conferences/meetings D. Advertising E. Social Media F. Sales Team Support The National IPA sales teams will work in conjunction with Supplier to promote the Master Agreement to both existing Participating Public Agencies and prospective Public Agencies through: A. Individual sales calls B. Joint sales calls C. Communications/customer service D. Training sessions for Public Agency teams E. Training sessions for Supplier teams The National IPA contracting teams will work in conjunction with Supplier to promote the Master Agreement to both existing Participating Public Agencies prospective Public Agencies through: A. Serving as the subject matter expert for questions regarding joint powers authority and state statutes and regulations for cooperative purchasing B. Training sessions for Public Agency teams C. Training sessions for Supplier teams D. Regular business reviews to monitor program success E. General contract administration Suppliers are required to pay an administrative fee of 1.0 % of the greater of the Contract Sales under the Master Agreement and Guaranteed Contract Sales under this Request for Proposal. Supplier will be required to execute the National IPA Administration Agreement (refer to Exhibit B). Capitalized terms not otherwise defined herein shall have the meanings given to them in the Master Agreement or in the National Intergovernmental Purchasing Alliance Company Administration Agreement between Supplier and National IPA (the "National IPA Administration Agreement") 1.3 Estimated Volume The dollar volume purchased under the Master Agreement is estimated to be approximately $500 million annually. While no minimum volume is guaranteed to Supplier, the estimated annual volume is projected based on the current annual volumes among the Principal Procurement Agency, other Participating Public Agencies that are anticipated to utilize the resulting Master Agreement to be made Deleted: 3 Commented [PB1]: Typically on national contracts we see contract fees ranging from 0.25% to 1.00%. We understand the need for an administrative fee, but we are concerned that a fee of 3.0% will render this contract less competitive and that therefore it will not be as widely used as other purchasing options available to this customer set. In order to ensure that this contract is as widely adopted and successful as possible, we would recommend an administrative fee of 1.0%. This will allow this vehicle to will be more in line with other national purchasing vehicles, and in turn, we believe, will render a larger dollar fee than the higher percentage would provide, since the contract will be more widely adopted. SHI will agree to the higher administrative fee if that is the route that National IPA decides to take; however we wanted to share our thoughts and experiences around the “sweet spot” for this fee. NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT A- NATIONAL IPA RESPONSE FOR NATIONAL COOPERATIVE CONTRACT Requirements for National Cooperative Contract Page 4 of 26 available to them through National IPA, and volume growth into other Public Agencies through a coordinated marketing approach between Supplier and National IPA. 1.4 Award Basis The basis of any contract award resulting from this RFP made by Principal Procurement Agency will be the basis of award on a national level through National IPA. If multiple suppliers are awarded by Principal Procurement Agency under the Master Agreement, those same suppliers will be required to extend the Master Agreement to Participating Public Agencies through National IPA. Utilization of the Master Agreement by Participating Public Agencies will be at the discretion of the individual Participating Public Agency. Certain terms of the Master Agreement specifically applicable to the Principal Procurement Agency are subject to modification for each Participating Public Agency as Supplier, such Participating Public Agency and National IPA shall agree. Participating Agencies may request to enter into a separate supplemental agreement to further define the level of service requirements over and above the minimum defined in the Master Agreement, including but not limited to invoice requirements; order requirements; specialized delivery; diversity requirements such as minority and woman owned businesses, historically underutilized business; and governing law. As part of such supplemental agreements, Participating Agencies may negotiate other terms of the Master Agreement, and may require offeror. Any supplemental agreement developed as a result of the Master Agreement is exclusively between the Participating Agency and the Supplier (Contract Sales are reported to National IPA). 1.5 Objectives of Cooperative Program This RFP is intended to achieve the following objectives regarding availability through National IPA’s cooperative program: A. Provide a comprehensive competitively solicited and awarded national agreement offering the Products covered by this solicitation to Participating Public Agencies; B. Establish the Master Agreement as the Supplier’s primary go to market strategy to Public Agencies nationwide; C. Achieve cost savings for Supplier and Public Agencies through a single solicitation process that will reduce the Supplier’s need to respond to multiple solicitations and Public Agencies need to conduct their own solicitation process; D. Combine the aggregate purchasing volumes of Participating Public Agencies to achieve cost effective pricing. 2.0 REPRESENTATIONS AND COVENANTS As a condition to Supplier entering into the Master Agreement, which would be available to all Public Agencies, Supplier must make certain representations, warranties and covenants to both the Principal Procurement Agency and National IPA designed to ensure the success of the Master Agreement for all Participating Public Agencies as well as the Supplier. 2.1 Corporate Commitment Deleted: and/or manufacturer to accept additional and/or modified licensing terms or separate subscription/user access provisions Deleted: Participating Agencies may also contract directly with the offeror’s authorized tier one suppliers pursuant to a request process based on factors as defined by the Participating Agency. These contracts would constitute individual contracts between the Participating Agency and tier one suppliers who have accepted the terms of the Master Agreement under a separate supplemental agreement between the Participating Agency and the tier one supplier. Sales under these contracts are tracked and reported to National IPA by the offeror. NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT A- NATIONAL IPA RESPONSE FOR NATIONAL COOPERATIVE CONTRACT Requirements for National Cooperative Contract Page 5 of 26 Supplier commits that (1) the Master Agreement has received all necessary corporate authorizations and support of the Supplier’s executive management, (2) the Master Agreement is Supplier's primary “go to market” strategy for Public Agencies, (3) the Master Agreement will be promoted to all Public Agencies, including any existing customers, and Supplier will transition existing customers, upon their request, to the Master Agreement, and (4) that the Supplier has read and agrees to the terms and conditions of the Administration Agreement with National IPA and will execute such agreement concurrent with and as a condition of its execution of the Master Agreement with the Principal Procurement Agency. Supplier will identify an executive corporate sponsor and a separate national account manager within the RFP response that will be responsible for the overall management of the Master Agreement. 2.2 2.3 Sales Commitment Supplier commits to aggressively market the Master Agreement as its go to market strategy in this defined sector and that its sales force will be trained, engaged and committed to offering the Master Agreement to Public Agencies through National IPA nationwide. Supplier commits that all Master Agreement sales will be accurately and timely reported to National IPA in accordance with the National IPA Administration Agreement. Supplier also commits that its sales force will be compensated, including sales incentives, for sales to Public Agencies under the Master Agreement in a consistent or better manner compared to sales to Public Agencies if the Supplier were not awarded the Master Agreement. 3.0 SUPPLIER QUALIFICATIONS Supplier must supply the following information in order for the Principal Procurement Agency to determine Supplier’s qualifications to extend the resulting Master Agreement to Participating Public Agencies through National IPA. 3.1 Company A. Brief history and description of your company. B. Total number and location of sales persons employed by your company. C. Number and location of support centers (if applicable). D. Annual sales for the three previous fiscal years. E. Submit your FEIN and Dunn & Bradstreet report. 3.2 Distribution, Logistics A. Describe how your company proposes to distribute the products/service nationwide. B. Identify all other companies that will be involved in processing, handling or shipping the products/service to the end user. C. Provide the number, size and location of your company’s distribution facilities, warehouses and retail network as applicable. D. State any return and restocking policy and fees, if applicable, associated with returns. E. Describe the full line of products and services offered by your company. Deleted: Pricing Commitment¶ Supplier commits the not-to-exceed pricing provided under the Master Agreement pricing is its lowest available (net to buyer) to Public Agencies nationwide and further commits that if a Participating Public Agency is eligible for lower pricing through a national, state, regional or local or cooperative contract, that the Supplier will match such lower pricing to that Participating Public Agency under the Master Agreement. NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT A- NATIONAL IPA RESPONSE FOR NATIONAL COOPERATIVE CONTRACT Requirements for National Cooperative Contract Page 6 of 26 3.3 Marketing and Sales A. Provide a detailed ninety-day plan beginning from award date of the Master Agreement describing the strategy to immediately implement the Master Agreement as your company’s primary go to market strategy for Public Agencies to your teams nationwide, to include, but not limited to: i. Executive leadership endorsement and sponsorship of the award as the public sector go-to-market strategy within first 10 days ii. Training and education of your national sales force with participation from the executive leadership of your company, along with the National IPA team within first 90 days B. Provide a detailed ninety-day plan beginning from award date of the Master Agreement describing the strategy to market the Master Agreement to current Participating Public Agencies, existing Pubic Agency customers of Supplier, as well as to prospective Public Agencies nationwide immediately upon award, to include, but not limited to: i. Creation and distribution of a co-branded press release to trade publications ii. Announcement, contract details and contact information published on the Supplier company website within first 90 days iii. Design, publication and distribution of co-branded marketing materials within first 90 days iv. Commitment to attendance and participation with National IPA at national (i.e. NIGP Annual Forum, NPI Conference, etc.), regional (i.e. Regional NIGP Chapter Meetings, etc.) and supplier-specific trade shows, conferences and meetings throughout the term of the Master Agreement v. Commitment to attend, exhibit and participate at the NIGP Annual Forum in an area reserved by National IPA for partner suppliers. Booth space will be purchased and staffed by your company. In addition, you commit to provide reasonable assistance to the overall promotion and marketing efforts for the NIGP Annual Forum, as directed by National IPA. vi. Design and publication of national and regional advertising in trade publications throughout the term of the Master Agreement vii. Ongoing marketing and promotion of the Master Agreement throughout its term (case studies, collateral pieces, presentations, promotions, etc.) viii. Dedicated National IPA internet web-based homepage on Supplier website with:  National IPA standard logo;  Copy of original Request for Proposal;  Copy of contract and amendments between Principal Procurement Agency and Supplier;  Summary of Products and pricing;  Marketing Materials  Electronic link to National IPA’s website including the online registration page;  A dedicated toll free number and email address for National IPA C. Describe how your company will transition any existing Public Agency customers’ accounts to the Master Agreement available nationally through National IPA. Include a list of current cooperative contracts (regional and national) your NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT A- NATIONAL IPA RESPONSE FOR NATIONAL COOPERATIVE CONTRACT Requirements for National Cooperative Contract Page 7 of 26 company holds and describe how the Master Agreement will be positioned among the other cooperative agreements. D. Acknowledge that your company agrees to provide its company/corporate logo(s) to National IPA and agrees to provide permission for reproduction of such logo in marketing communications and promotions. Acknowledge that use of National IPA logo will require permission for reproduction, as well. E. Supplier is responsible for proactive direct sales of Supplier’s goods and services to Public Agencies nationwide and the timely follow up to leads established by National IPA. All sales materials are to use the National IPA logo. At a minimum, the Supplier’s sales initiatives should communicate: i. Master Agreement was competitively solicited and publicly awarded by a Principal Procurement Agency ii. Advantageous government pricing iii. No cost to participate iv. Non-exclusive contract F. Supplier is responsible for the training of its national sales force on the Master Agreement. At a minimum, sales training should include: i. Key features of Master Agreement ii. Working knowledge of the solicitation process iii. Awareness of the range of Public Agencies that can utilize the Master Agreement through National IPA iv. Knowledge of benefits of the use of cooperative contracts G. Provide contact information for the person(s), who will be responsible for: i. Marketing ii. Sales iii. Sales Support iv. Financial Reporting v. Contracts H. Describe in detail how your company’s national sales force is structured, including contact information for the highest-level executive in charge of the sales team. I. Explain in detail how the sales teams will work with the National IPA team to implement, grow and service the national program. J. Explain in detail how your organization will manage the overall national program throughout the term of the Master Agreement, including ongoing coordination of marketing and sales efforts, timely new Participating Public Agency account set- up, etc. K. State the amount of your company’s Public Agency sales for the previous fiscal year. Provide a list of your top 10 Public Agency customers, the total purchases for each for the previous fiscal year along with a key contact for each. L. Describe your company’s information systems capabilities and limitations regarding order management through receipt of payment, including description of multiple platforms that may be used for any of these functions. M. Provide the Contract Sales (as defined in Section 10 of the National Intergovernmental Purchasing Alliance Company Administration Agreement) that your company will guarantee each year under the Master Agreement for the initial three years of the Master Agreement (“Guaranteed Contract Sales”). Deleted: Best NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT A- NATIONAL IPA RESPONSE FOR NATIONAL COOPERATIVE CONTRACT Requirements for National Cooperative Contract Page 8 of 26 $_______.00 in year one $_______.00 in year two $_______.00 in year three To the extent Supplier guarantees minimum Contract Sales, the administration fee shall be calculated based on the greater of the actual Contract Sales and the Guaranteed Contract Sales. N. Even though it is anticipated that many Public Agencies will be able to utilize the Master Agreement without further formal solicitation, there may be circumstances where Public Agencies will issue their own solicitations. The following options are available when responding to a solicitation for Products covered under the Master Agreement. i. Respond with Master Agreement pricing (Contract Sales reported to National IPA). ii. If competitive conditions require pricing lower than the standard Master Agreement not-to-exceed pricing, Supplier may respond with lower pricing through the Master Agreement. If Supplier is awarded the contract, the sales are reported as Contract Sales to National IPA under the Master Agreement. iii. Respond with pricing higher than Master Agreement only in the unlikely event that the Public Agency refuses to utilize Master Agreement (Contract Sales are not reported to National IPA). iv. If alternative or multiple proposals are permitted, respond with pricing higher than Master Agreement, and include Master Agreement as the alternate or additional proposal. Detail your strategies under these options when responding to a solicitation. NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT B- NATIONAL IPA ADMINISTRATION AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 9 of 26 NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY ADMINISTRATION AGREEMENT THIS ADMINISTRATION AGREEMENT (this “Agreement”) is made this ___ day of ______ 20___, between National Intergovernmental Purchasing Alliance Company (“National IPA”), and ________________ (“Supplier”). RECITALS WHEREAS, the ___________________ (the “Principal Procurement Agency”) has entered into a Master Agreement dated _________________, Agreement No_______, by and between the Principal Procurement Agency and Supplier, (as may be amended from time to time in accordance with the terms thereof, the “Master Agreement”), as attached hereto as Exhibit A and incorporated herein by reference as though fully set forth herein, for the purchase of ___________________________ (the “Product”); WHEREAS, said Master Agreement provides that any or all public agencies, including state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit (collectively, “Public Agencies”), that register (either via registration on the National IPA website or execution of a Master Intergovernmental Cooperative Purchasing Agreement, attached hereto as Exhibit B) (each, hereinafter referred to as a “Participating Public Agency”) may purchase Product at prices stated in the Master Agreement; WHEREAS, Participating Public Agencies may access the Master Agreement which is offered through National IPA to Public Agencies; WHEREAS, National IPA serves as the contract administrator of the Master Agreement on behalf of Principal Procurement Agency; WHEREAS, Principal Procurement Agency desires National IPA to proceed with administration of the Master Agreement; and WHEREAS, National IPA and Supplier desire to enter into this Agreement to make available the Master Agreement to Participating Public Agencies and to set forth certain terms and conditions governing the relationship between National IPA and Supplier. NOW, THEREFORE, in consideration of the payments to be made hereunder and the mutual covenants contained in this Agreement, National IPA and Supplier hereby agree as follows: DEFINITIONS 1. Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings given to them in the Master Agreement. NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT B- NATIONAL IPA ADMINISTRATION AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 10 of 26 TERMS AND CONDITIONS 2. The Master Agreement and the terms and conditions contained therein shall apply to this Agreement except as expressly changed or modified by this Agreement. Supplier acknowledges and agrees that the covenants and agreements of Supplier set forth in the solicitation and Supplier’s response thereto resulting in the Master Agreement are incorporated herein and are an integral part hereof. 3. National IPA shall be afforded all of the rights, privileges and indemnifications afforded to Principal Procurement Agency by or from Supplier under the Master Agreement, and such rights, privileges and indemnifications shall accrue and apply with equal effect to National IPA, its agents, employees, directors, and representatives under this Agreement including, but not limited to, Supplier’s obligation to obtain appropriate insurance. 4. National IPA shall perform all of its duties, responsibilities and obligations as contract administrator of the Master Agreement on behalf of Principal Procurement Agency as set forth herein, and Supplier hereby acknowledges and agrees that all duties, responsibilities and obligations will be undertaken by National IPA solely in its capacity as the contract administrator under the Master Agreement. 5. With respect to any purchases by Principal Procurement Agency or any Participating Public Agency pursuant to the Master Agreement, National IPA shall not be: (i) construed as a dealer, re-marketer, representative, partner or agent of any type of the Supplier, Principal Procurement Agency or any Participating Public Agency; (ii) obligated, liable or responsible for any order for Product made by Principal Procurement Agency or any Participating Public Agency or any employee thereof under the Master Agreement or for any payment required to be made with respect to such order for Product; and (iii) obligated, liable or responsible for any failure by Principal Procurement Agency or any Participating Public Agency to comply with procedures or requirements of applicable law or the Master Agreement or to obtain the due authorization and approval necessary to purchase under the Master Agreement. National IPA makes no representation or guaranty with respect to any minimum purchases by Principal Procurement Agency or any Participating Public Agency or any employee thereof under this Agreement or the Master Agreement. 6. National IPA shall not be responsible for Supplier’s performance under the Master Agreement, and Supplier shall hold National IPA harmless from any liability that may arise from the negligent acts or omissions of Supplier in the course of its performance under the Master Agreement. 7. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, NATIONAL IPA EXPRESSLY DISCLAIMS ALL EXPRESS OR IMPLIED REPRESENTATIONS AND WARRANTIES REGARDING NATIONAL IPA’S PERFORMANCE AS A CONTRACT ADMINISTRATOR OF THE MASTER AGREEMENT. 8. NEITHER PARTY SHALL BE LIABLE IN ANY WAY FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY, PUNITIVE, OR RELIANCE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSS OF OR DAMAGE TO DATA, LOSS OF ANTICIPATED REVENUE OR PROFITS, WORK STOPPAGE OR IMPAIRMENT OF OTHER ASSETS, WHETHER OR NOT FORESEEABLE, EVEN IF A PARTY IS ADVISED OF Deleted: connection with the Deleted: NATIONAL Deleted: IPA Deleted: NOT Deleted: NATIONAL Deleted: IPA NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT B- NATIONAL IPA ADMINISTRATION AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 11 of 26 THE POSSIBILITY OF SUCH DAMAGES. 9. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT AND/OR ANY ORDER ISSUED HEREUNDER, SUPPLIER HEREBY DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WARRANTY OF NONINFRINGEMENT, OR ANY WARRANTY RELATING TO THIRD PARTY SERVICES OR PRODUCTS. THE DISCLAIMER CONTAINED IN THIS PARAGRAPH DOES NOT AFFECT THE TERMS OF ANY WARRANTY PROVIDED BY AN OEM. TERM OF AGREEMENT; TERMINATION 10. This Agreement shall be in effect so long as the Master Agreement remains in effect, provided, however, that the provisions of Sections 3 – 9 and 14 – 23, hereof and the indemnifications and limitations of liability afforded by the Supplier to National IPA in the Master Agreement, to the extent such provisions survive any expiration or termination of the Master Agreement, shall survive the expiration or termination of this Agreement. 11. Supplier’s failure to maintain its covenants and commitments contained in this Agreement or any action of the Supplier which gives rise to a right by Principal Procurement Agency to terminate the Master Agreement shall constitute a material breach of this Agreement and if not cured within thirty (30) days of written notice to Supplier shall be deemed a cause for termination of this Agreement at National IPA’s sole discretion. Notwithstanding anything contained herein to the contrary, this Agreement shall terminate on the date of the termination or expiration of the Master Agreement. NATIONAL PROMOTION j 12. National IPA and Supplier shall publicize and promote the availability of the Master Agreement’s products and services to Public Agencies and such agencies’ employees. Supplier shall require each Public Agency to register its participation in the National IPA program by either registering on the National IPA website, www.nationalipa.org, or executing a Master Intergovernmental Cooperative Purchasing Agreement prior to processing the Participating Public Agency’s first sales order. Upon request, Supplier shall make available to interested Public Agencies a copy of the Master Agreement and such price lists or quotes as may be necessary for such Public Agencies to evaluate potential purchases. 13. Supplier shall provide such marketing and administrative support as set forth in the solicitation resulting in the Master Agreement, including assisting in development of marketing materials as reasonably requested by Principal Procurement Agency and National IPA. Supplier shall be responsible for obtaining permission or license of use and payment of any license fees for all content and images Supplier provides to National IPA or posts on the National IPA website. Supplier shall indemnify, defend and hold harmless National IPA for use of all such content and images including copyright infringement claims. Supplier and National IPA each hereby grant to the other Deleted: 8 Deleted: 8 Commented [PB5]: Update Deleted: 9 Deleted: 10 Deleted: 11 NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT B- NATIONAL IPA ADMINISTRATION AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 12 of 26 party a limited, revocable, non-transferable, non-sublicensable right to use such party’s logo (each, the “Logo”) solely for use in marketing the Master Agreement. Each party shall provide the other party with the standard terms of use of such party’s Logo, and such party shall comply with such terms in all material respects. Both parties shall obtain approval from the other party prior to use of such party’s Logo. Notwithstanding the foregoing, the parties understand and agree that except as provided herein neither party shall have any right, title or interest in the other party’s Logo. Upon termination of this Agreement, each party shall immediately cease use of the other party’s Logo. ADMINISTRATIVE FEE, REPORTING & PAYMENT 14. An “Administrative Fee” shall be defined and due to National IPA from Supplier in the amount of __ percent (__%) (“Administrative Fee Percentage”) multiplied by the total purchase amount paid to Supplier, less refunds, credits on returns, rebates and discounts, for the sale of products and/or services to Principal Procurement Agency and Participating Public Agencies pursuant to the Master Agreement (as amended from time to time and including any renewal thereof) (“Contract Sales”). From time to time the parties may mutually agree in writing to a lower Administrative Fee Percentage for a specifically identified Participating Public Agency’s Contract Sales. 15. Supplier shall provide National IPA with an electronic accounting report monthly, in the format prescribed by National IPA, summarizing all Contract Sales for each calendar month. The Contract Sales reporting format is provided as Exhibit C (“Contract Sales Report”), attached hereto and incorporated herein by reference. Contract Sales Reports for each calendar month shall be provided by Supplier to National IPA by the 10th day of the following month. Failure to provide a Contract Sales Report within the time and manner specified herein shall constitute a material breach of this Agreement and if not cured within thirty (30) days of written notice to Supplier shall be deemed a cause for termination of the Master Agreement, at Principal Procurement Agency’s sole discretion, and/or this Agreement, at National IPA’s sole discretion. 16. Administrative Fee payments are to be paid by Supplier to National IPA at the frequency and on the due date stated in Section 13, above, for Supplier’s submission of corresponding Contract Sales Reports. Administrative Fee payments are to be made via Automated Clearing House (ACH) to the National IPA designated financial institution identified in Exhibit D. Failure to provide a payment of the Administrative Fee within the time and manner specified herein shall constitute a material breach of this Agreement and if not cured within thirty (30) days of written notice to Supplier shall be deemed a cause for termination of the Master Agreement, at Principal Procurement Agency’s sole discretion, and/or this Agreement, at National IPA’s sole discretion. All Administrative Fees not paid when due shall bear interest at a rate equal to the lesser of one and one-half percent (1 1/2%) per month or the maximum rate permitted by law until paid in full. 17. Supplier shall maintain an accounting of all purchases made by Participating Public Agencies under the Master Agreement. National IPA, or its designee, in National IPA’s sole discretion, reserves the right to compare Participating Public Agency records with Contract Sales Reports submitted by Supplier for a period of four (4) years from the date National IPA receives such report. In addition, National IPA may engage a third party to conduct an independent audit of Supplier’s monthly reports. National IPA will request to audit Supplier by providing at least thirty (30) days’ notice to Supplier and shall be permitted to conduct such audits once per calendar year. In the event of such an audit, Supplier shall provide all materials reasonably requested relating to such Deleted: 2 Deleted: 3 Deleted: 4 Deleted: 5 NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT B- NATIONAL IPA ADMINISTRATION AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 13 of 26 audit by National IPA at the location designated by National IPA. In the event an underreporting of Contract Sales and a resulting underpayment of Administrative Fees is revealed, National IPA will notify the Supplier in writing. Supplier will have thirty (30) days from the date of such notice to resolve the discrepancy to National IPA’s reasonable satisfaction, including payment of any Administrative Fees due and owing, together with interest thereon in accordance with Section 15, and reimbursement of National IPA’s costs and expenses related to such audit. GENERAL PROVISIONS 16. This Agreement, the Master Agreement and the exhibits referenced herein supersede any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter hereto and no other agreement, statement, or promise relating to the subject matter of this Agreement which is not contained or incorporated herein shall be valid or binding. In the event of any conflict between the provisions of this Agreement and the Master Agreement, as between National IPA and Supplier, the provisions of this Agreement shall prevail. 17. If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement or to recover any Administrative Fee and accrued interest, the prevailing party shall be entitled to reasonable attorney’s fees and costs in addition to any other relief to which it may be entitled. A. 18. This Agreement and National IPA’s rights and obligations hereunder may be assigned at to an affiliate of National IPA, any purchaser of any or all or substantially all of the assets of National IPA, or the successor entity as a result of a merger, reorganization, consolidation, conversion or change of control, whether by operation of law orotherwise, with Supplier’s written consent, which shall not be unreasonably withheld. Supplier may not assign its obligations hereunder without the prior written consent of National IPA, which shall not be unreasonably withheld. Notwithstanding the foregoing, either party may assign this Agreement to a successor pursuant to a merger, consolidation or sale of all or substantially all its assets. 19. All written communications given hereunder shall be delivered by first-class mail, postage prepaid, or overnight delivery on receipt to the addresses as set forth below. A. National Intergovernmental Purchasing Alliance Company National IPA Attn: President 2555 Meridian Blvd Suite 300 Franklin, TN 37067 B. Supplier 290 Davidson Avenue Somerset, NJ 08873 Deleted: 3 Commented [PB6]: Note: Individual agreements with the Agencies (if any) be necessary bc they desire alternate terms and therefore any conflicting terms stated in those agreements would supersede this Agreement. We need to bring clarity here. The Master states it will control and this Agreement states that it will control. SHI prefer we make the Master control. Deleted: National IPA’s sole discretion Deleted: NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT B- NATIONAL IPA ADMINISTRATION AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 14 of 26 20. If any provision of this Agreement shall be deemed to be, or shall in fact be, illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions herein contained or render the same invalid, inoperative or unenforceable to any extent whatever, and this Agreement will be construed by limiting or invalidating such provision to the minimum extent necessary to make such provision valid, legal and enforceable. 21. This Agreement may not be amended, changed, modified, or altered without the prior written consent of the parties hereto, and no provision of this Agreement may be discharged or waived, except by a writing signed by the parties. A waiver of any particular provision will not be deemed a waiver of any other provision, nor will a waiver given on one occasion be deemed to apply to any other occasion. 22. This Agreement shall inure to the benefit of and shall be binding upon National IPA, the Supplier and any respective successor and assign thereto; subject, however, to the limitations contained herein. 23. This Agreement will be construed under and governed by the laws of the State of Delaware, excluding its conflicts of law provisions and any action arising out of or related to this Agreement shall be commenced solely and exclusively in the state or federal courts in Williamson County Tennessee. 24. This Agreement may be executed in counterparts, each of which is an original but all of which, together, shall constitute but one and the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile, or by .pdf or similar electronic transmission, will constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile, or by .pdf or similar electronic transmission, will be deemed to be their original signatures for any purpose whatsoever. Authorized Signature, Supplier NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY Signature Signature Ward H. Brown Name Name Chief Operating Officer Title Title Date Date NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT C – NATIONAL IPA MASTER INTERGOVERNMENTAL COOPERATIVE PURCHASING AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 15 of 26 MASTER INTERGOVERNMENTAL COOPERATIVE PURCHASING AGREEMENT This Master Intergovernmental Cooperative Purchasing Agreement (this “Agreement”) is entered into by and between those certain government agencies that execute a Principal Procurement Agency Certificate (“Principal Procurement Agencies”) with National Intergovernmental Purchasing Alliance Company (“National IPA”) to be appended and made a part hereof and such other public agencies (“Participating Public Agencies”) who register to participate in the cooperative purchasing programs administered by National IPA and its affiliates and subsidiaries (collectively, the “National IPA Parties”) by either registering on a National IPA Party website (such as www.nationalipa.org), or by executing a copy of this Agreement. RECITALS WHEREAS, after a competitive solicitation and selection process by Principal Procurement Agencies, a number of suppliers have entered into “Master Agreements” (herein so called) to provide a variety of goods, products and services (“Products”) to the applicable Principal Procurement Agency and the Participating Public Agencies; WHEREAS, Master Agreements are made available by Principal Procurement Agencies through the National IPA Parties and provide that Participating Public Agencies may purchase Products on the same terms, conditions and pricing as the Principal Procurement Agency, subject to any applicable federal and/or local purchasing ordinances and the laws of the State of purchase; and WHEREAS, in addition to Master Agreements, the National IPA Parties may from time to time offer Participating Public Agencies the opportunity to acquire Products through other group purchasing agreements. NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, and of the mutual benefits to result, the parties hereby agree as follows: 1. Each party will facilitate the cooperative procurement of Products. 2. The Participating Public Agencies shall procure Products in accordance with and subject to the relevant federal, state and local statutes, ordinances, rules and regulations that govern Participating Public Agency’s procurement practices. The Participating Public Agencies hereby acknowledge and agree that it is the intent of the parties that all provisions of this Agreement and that Principal Procurement Agencies’ participation in the program described herein comply with all applicable laws, including but not limited to the requirements of 42 C.F.R. § 1001.952(h), as may be amended from time to time. The Participating Public Agencies further acknowledge and agree that they are solely responsible for their compliance with all applicable “safe harbor” regulations, including but not limited to any and all obligations to fully and accurately report discounts and incentives. 3. The Participating Public Agency represents and warrants that the Participating Public Agency is not a hospital and is not purchasing Products on behalf of a hospital. NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT C- NATIONAL IPA MASTER INTERGOVERNMENTAL COPERATIVE PURCHASING AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 16 of 26 4. The cooperative use of Master Agreements shall be in accordance with the terms and conditions of the Master Agreements, except as modification of those terms and conditions is otherwise required by applicable federal, state or local law. 5. The Principal Procurement Agencies will make available, upon reasonable request, Master Agreement information which may assist in improving the procurement of Products by the Participating Public Agencies. 6. The Participating Public Agency agrees the National IPA Parties may provide access to group purchasing organization (“GPO”) agreements directly or indirectly by enrolling the Participating Public Agency in another GPO’s purchasing program, including but not limited to Vizient Source, LLC, Provista, Inc. and other National IPA affiliates and subsidiaries; provided the purchase of Products through a National IPA Party or any other GPO shall be at the Participating Public Agency’s sole discretion. 7. The Participating Public Agencies (each a “Procuring Party”) that procure Products through any Master Agreement or GPO Product supply agreement (each a “GPO Contract”) will make timely payments to the reseller ( “Supplier”) for Products received in accordance with the terms and conditions of the Master Agreement or GPO Contract, as applicable. Payment for Products and inspections and acceptance of Products ordered by the Procuring Party shall be the exclusive obligation of such Procuring Party. Disputes between Procuring Party and any Supplier shall be resolved in accordance with the law and venue rules of the State of purchase unless otherwise agreed to by the Procuring Party and Supplier. 8. The Procuring Party shall not use this Agreement as a method for obtaining additional concessions or reduced prices for similar products or services. 9. The Procuring Party shall be responsible for the ordering of Products under this Agreement. A non-procuring party shall not be liable in any fashion for any violation by a Procuring Party, and, to the extent permitted by applicable law, the Procuring Party shall hold non- procuring party harmless from any liability that may arise from the acts or omissions of the Procuring Party. 10. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE NATIONAL IPA PARTIES EXPRESSLY DISCLAIM ALL EXPRESS OR IMPLIED REPRESENTATIONS AND WARRANTIES REGARDING ANY PRODUCT, MASTER AGREEMENT AND GPO CONTRACT. NONE OF THE PARTIES SHALL BE LIABLE IN ANY WAY FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY, PUNITIVE, OR RELIANCE DAMAGES, EVEN IF THE PARTIES ARE ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHER, THE PROCURING PARTY ACKNOWLEDGES AND AGREES THAT THE NATIONAL IPA PARTIES SHALL HAVE NO LIABILITY FOR ANY ACT OR OMISSION BY A SUPPLIER OR OTHER PARTY UNDER A MASTER AGREEMENT OR GPO CONTRACT. Deleted: distributor, manufacturer or other vendor Deleted: collectively, Deleted: THE NATIONAL IPA Deleted: NOT Deleted: NATIONAL IPA NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT C- NATIONAL IPA MASTER INTERGOVERNMENTAL COPERATIVE PURCHASING AGREEMENT, EXAMPLE Requirements for National Cooperative Contract Page 17 of 26 11. This Agreement shall remain in effect until termination by a party giving thirty (30) days’ written notice to the other party. The provisions of Paragraphs 6 - 10 hereof shall survive any such termination. 12. This Agreement shall take effect upon (i) execution of the Principal Procurement Agency Certificate, or (ii) the registration on a National IPA Party website or the execution of this Agreement by a Participating Public Agency, as applicable. NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT D – NATIONAL IPA PRINCIPAL PROCUREMENT AGENCY CERTIFICATE, EXAMPLE Requirements for National Cooperative Contract Page 18 of 26 PRINCIPAL PROCUREMENT AGENCY CERTIFICATE In its capacity as a Principal Procurement Agency (as defined below) for National Intergovernmental Purchasing Alliance Company (“National IPA”), [NAME OF PPA] agrees to pursue Master Agreements for Products as specified in the attached Exhibits to this Principal Procurement Agency Certificate. I hereby acknowledge, in my capacity as _____________ of and on behalf of [NAME OF PPA] (“Principal Procurement Agency”), that I have read and hereby agree to the general terms and conditions set forth in the attached Master Intergovernmental Cooperative Purchasing Agreement regulating the use of the Master Agreements and purchase of Products that from time to time are made available by Principal Procurement Agencies to Participating Public Agencies nationwide through National IPA. I understand that the purchase of one or more Products under the provisions of the Master Intergovernmental Cooperative Purchasing Agreement is at the sole and complete discretion of the Participating Public Agency. Authorized Signature, [PRINCIPAL PROCUREMENT AGENCY] Signature Name Title Date NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT E – NATIONAL IPA CONTRACT SALES REPORTING TEMPLATE Requirements for National Cooperative Contract Page 19 of 26 Supplier Name: Contract Sales Report Month: Contract ID: Participating Agency Name Address City State Zip Code Participating Agency # {Assigned by National IPA and provided to Supplier} Transaction Date (Date of Sale) Contract Sales for Month ($) Admin Fee % Admin Fee $ Report Totals Cumulative Contract Sales NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT C - NATIONAL IPA CONTRACT SALES REPORTING TEMPLATE (to be submitted electronically in Microsoft Excel format) National IPA Contract Sales Monthly Report Requirements for National Cooperative Contract Page 20 of 26 NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE COMPANY EXHIBITS EXHIBIT F- NATIONAL IPA ADVERTISING COMPLIANCE REQUIREMENT Pursuant to certain state notice provisions, including but not limited to Oregon Revised Statutes Chapter 279A.220, the following public agencies and political subdivisions of the referenced public agencies are eligible to register with National IPA and access the Master Agreement contract award made pursuant to this solicitation, and are hereby given notice of the foregoing request for proposals for purposes of complying with the procedural requirements of said statutes: Nationwide: State of Alabama* State of Hawaii State of Massachusetts State of New Mexico State of South Dakota State of Alaska State of Idaho State of Michigan State of New York State of Tennessee State of Arizona State of Illinois State of Minnesota State of North Carolina State of Texas State of Arkansas State of Indiana State of Mississippi State of North Dakota State of Utah State of California State of Iowa State of Missouri State of Ohio State of Vermont State of Colorado State of Kansas State of Montana State of Oklahoma* State of Virginia State of Connecticut State of Kentucky State of Nebraska State of Oregon State of Washington State of Delaware State of Louisiana State of Nevada State of Pennsylvania State of West Virginia State of Florida State of Maine State of New Hampshire State of Rhode Island State of Wisconsin State of Georgia State of Maryland State of New Jersey State of South Carolina State of Wyoming District of Columbia Lists of political subdivisions and local governments in the above referenced states / districts may be found at http://www.usa.gov/Agencies/State_and_Territories.shtml and https://www.usa.gov/local-governments. *Some public agencies and political subdivisions of these states may be restricted by state statutes that limit competition among cooperative purchasing organizations by only allowing use of purchasing cooperatives sponsored by certain National Associations. Certain Public Agencies and Political Subdivisions: CITIES, TOWNS, VILLAGES AND BOROUGHS INCLUDING BUT NOT LIMITED TO: BAKER CITY GOLF COURSE, OR CITY OF ADAIR VILLAGE, OR CITY OF ASHLAND, OR CITY OF AUMSVILLE, OR CITY OF AURORA, OR CITY OF BAKER, OR CITY OF BATON ROUGE, LA CITY OF BEAVERTON, OR CITY OF BEND, OR CITY OF BOARDMAN, OR CITY OF BONANAZA, OR CITY OF BOSSIER CITY, LA CITY OF BROOKINGS, OR CITY OF BURNS, OR CITY OF CANBY, OR CITY OF CANYONVILLE, OR CITY OF CLATSKANIE, OR CITY OF COBURG, OR CITY OF CONDON, OR CITY OF COQUILLE, OR CITY OF CORVALLI, OR CITY OF CORVALLIS PARKS AND RECREATION DEPARTMENT, OR CITY OF COTTAGE GROVE, OR CITY OF DONALD, OR CITY OF EUGENE, OR CITY OF FOREST GROVE, OR CITY OF GOLD HILL, OR CITY OF GRANTS PASS, OR CITY OF GRESHAM, OR CITY OF HILLSBORO, OR CITY OF INDEPENDENCE, OR CITY AND COUNTY OF HONOLULU, HI CITY OF KENNER, LA CITY OF LA GRANDE, OR CITY OF LAFAYETTE, LA CITY OF LAKE CHARLES, OR CITY OF LEBANON, OR CITY OF MCMINNVILLE, OR CITY OF MEDFORD, OR CITY OF METAIRIE, LA CITY OF MILL CITY, OR CITY OF MILWAUKIE, OR CITY OF MONROE, LA CITY OF MOSIER, OR CITY OF NEW ORLEANS, LA CITY OF NORTH PLAINS, OR CITY OF OREGON CITY, OR CITY OF PILOT ROCK, OR CITY OF PORTLAND, OR CITY OF POWERS, OR CITY OF PRINEVILLE, OR CITY OF REDMOND, OR CITY OF REEDSPORT, OR CITY OF RIDDLE, OR CITY OF ROGUE RIVER, OR CITY OF ROSEBURG, OR CITY OF SALEM, OR CITY OF SANDY, OR CITY OF SCAPPOOSE, OR CITY OF SHADY COVE, OR CITY OF SHERWOOD, OR CITY OF SHREVEPORT, LA CITY OF SILVERTON, OR Requirements for National Cooperative Contract Page 21 of 26 CITY OF SPRINGFIELD, OR CITY OF ST. HELENS, OR CITY OF ST. PAUL, OR CITY OF SULPHUR, LA CITY OF TIGARD, OR CITY OF TROUTDALE, OR CITY OF TUALATIN, OR CITY OF WALKER, LA CITY OF WARRENTON, OR CITY OF WEST LINN, OR CITY OF WILSONVILLE, OR CITY OF WINSTON, OR CITY OF WOODBURN, OR LEAGUE OF OREGON CITES THE CITY OF HAPPY VALLEY OREGON ALPINE, UT ALTA, UT ALTAMONT, UT ALTON, UT AMALGA, UT AMERICAN FORK CITY, UT ANNABELLA, UT ANTIMONY, UT APPLE VALLEY, UT AURORA, UT BALLARD, UT BEAR RIVER CITY, UT BEAVER, UT BICKNELL, UT BIG WATER, UT BLANDING, UT BLUFFDALE, UT BOULDER, UT CITY OF BOUNTIFUL, UT BRIAN HEAD, UT BRIGHAM CITY CORPORATION, UT BRYCE CANYON CITY, UT CANNONVILLE, UT CASTLE DALE, UT CASTLE VALLEY, UT CITY OF CEDAR CITY, UT CEDAR FORT, UT CITY OF CEDAR HILLS, UT CENTERFIELD, UT CENTERVILLE CITY CORPORATION, UT CENTRAL VALLEY, UT CHARLESTON, UT CIRCLEVILLE, UT CLARKSTON, UT CLAWSON, UT CLEARFIELD, UT CLEVELAND, UT CLINTON CITY CORPORATION, UT COALVILLE, UT CORINNE, UT CORNISH, UT COTTONWOOD HEIGHTS, UT DANIEL, UT DELTA, UT DEWEYVILLE, UT DRAPER CITY, UT DUCHESNE, UT EAGLE MOUNTAIN, UT EAST CARBON, UT ELK RIDGE, UT ELMO, UT ELSINORE, UT ELWOOD, UT EMERY, UT ENOCH, UT ENTERPRISE, UT EPHRAIM, UT ESCALANTE, UT EUREKA, UT FAIRFIELD, UT FAIRVIEW, UT FARMINGTON, UT FARR WEST, UT FAYETTE, UT FERRON, UT FIELDING, UT FILLMORE, UT FOUNTAIN GREEN, UT FRANCIS, UT FRUIT HEIGHTS, UT GARDEN CITY, UT GARLAND, UT GENOLA, UT GLENDALE, UT GLENWOOD, UT GOSHEN, UT GRANTSVILLE, UT GREEN RIVER, UT GUNNISON, UT HANKSVILLE, UT HARRISVILLE, UT HATCH, UT HEBER CITY CORPORATION, UT HELPER, UT HENEFER, UT HENRIEVILLE, UT HERRIMAN, UT HIDEOUT, UT HIGHLAND, UT HILDALE, UT HINCKLEY, UT HOLDEN, UT HOLLADAY, UT HONEYVILLE, UT HOOPER, UT HOWELL, UT HUNTINGTON, UT HUNTSVILLE, UT CITY OF HURRICANE, UT HYDE PARK, UT HYRUM, UT INDEPENDENCE, UT IVINS, UT JOSEPH, UT JUNCTION, UT KAMAS, UT KANAB, UT KANARRAVILLE, UT KANOSH, UT KAYSVILLE, UT KINGSTON, UT KOOSHAREM, UT LAKETOWN, UT LA VERKIN, UT LAYTON, UT Requirements for National Cooperative Contract Page 22 of 26 LEAMINGTON, UT LEEDS, UT LEHI CITY CORPORATION, UT LEVAN, UT LEWISTON, UT LINDON, UT LOA, UT LOGAN CITY, UT LYMAN, UT LYNNDYL, UT MANILA, UT MANTI, UT MANTUA, UT MAPLETON, UT MARRIOTT-SLATERVILLE, UT MARYSVALE, UT MAYFIELD, UT MEADOW, UT MENDON, UT MIDVALE CITY INC., UT MIDWAY, UT MILFORD, UT MILLVILLE, UT MINERSVILLE, UT MOAB, UT MONA, UT MONROE, UT CITY OF MONTICELLO, UT MORGAN, UT MORONI, UT MOUNT PLEASANT, UT MURRAY CITY CORPORATION, UT MYTON, UT NAPLES, UT NEPHI, UT NEW HARMONY, UT NEWTON, UT NIBLEY, UT NORTH LOGAN, UT NORTH OGDEN, UT NORTH SALT LAKE CITY, UT OAK CITY, UT OAKLEY, UT OGDEN CITY CORPORATION, UT OPHIR, UT ORANGEVILLE, UT ORDERVILLE, UT OREM, UT PANGUITCH, UT PARADISE, UT PARAGONAH, UT PARK CITY, UT PAROWAN, UT PAYSON, UT PERRY, UT PLAIN CITY, UT PLEASANT GROVE CITY, UT PLEASANT VIEW, UT PLYMOUTH, UT PORTAGE, UT PRICE, UT PROVIDENCE, UT PROVO, UT RANDOLPH, UT REDMOND, UT RICHFIELD, UT RICHMOND, UT RIVERDALE, UT RIVER HEIGHTS, UT RIVERTON CITY, UT ROCKVILLE, UT ROCKY RIDGE, UT ROOSEVELT CITY CORPORATION, UT ROY, UT RUSH VALLEY, UT CITY OF ST. GEORGE, UT SALEM, UT SALINA, UT SALT LAKE CITY CORPORATION, UT SANDY, UT SANTA CLARA, UT SANTAQUIN, UT SARATOGA SPRINGS, UT SCIPIO, UT SCOFIELD, UT SIGURD, UT SMITHFIELD, UT SNOWVILLE, UT CITY OF SOUTH JORDAN, UT SOUTH OGDEN, UT CITY OF SOUTH SALT LAKE, UT SOUTH WEBER, UT SPANISH FORK, UT SPRING CITY, UT SPRINGDALE, UT SPRINGVILLE, UT STERLING, UT STOCKTON, UT SUNNYSIDE, UT SUNSET CITY CORP, UT SYRACUSE, UT TABIONA, UT CITY OF TAYLORSVILLE, UT TOOELE CITY CORPORATION, UT TOQUERVILLE, UT TORREY, UT TREMONTON CITY, UT TRENTON, UT TROPIC, UT UINTAH, UT VERNAL CITY, UT VERNON, UT VINEYARD, UT VIRGIN, UT WALES, UT WALLSBURG, UT WASHINGTON CITY, UT WASHINGTON TERRACE, UT WELLINGTON, UT WELLSVILLE, UT WENDOVER, UT WEST BOUNTIFUL, UT WEST HAVEN, UT WEST JORDAN, UT WEST POINT, UT WEST VALLEY CITY, UT WILLARD, UT WOODLAND HILLS, UT WOODRUFF, UT WOODS CROSS, UT Requirements for National Cooperative Contract Page 23 of 26 COUNTIES AND PARISHES INCLUDING BUT NOT LIMITED TO: ASCENSION PARISH, LA ASCENSION PARISH, LA, CLEAR OF COURT CADDO PARISH, LA CALCASIEU PARISH, LA CALCASIEU PARISH SHERIFF’S OFFICE, LA CITY AND COUNTY OF HONOLULU, HI CLACKAMAS COUNTY, OR CLACKAMAS COUNTY DEPT OF TRANSPORTATION, OR CLATSOP COUNTY, OR COLUMBIA COUNTY, OR COOS COUNTY, OR COOS COUNTY HIGHWAY DEPARTMENT, OR COUNTY OF HAWAII, OR CROOK COUNTY, OR CROOK COUNTY ROAD DEPARTMENT, OR CURRY COUNTY, OR DESCHUTES COUNTY, OR DOUGLAS COUNTY, OR EAST BATON ROUGE PARISH, LA GILLIAM COUNTY, OR GRANT COUNTY, OR HARNEY COUNTY, OR HARNEY COUNTY SHERIFFS OFFICE, OR HAWAII COUNTY, HI HOOD RIVER COUNTY, OR JACKSON COUNTY, OR JEFFERSON COUNTY, OR JEFFERSON PARISH, LA JOSEPHINE COUNTY GOVERNMENT, OR LAFAYETTE CONSOLIDATED GOVERNMENT, LA LAFAYETTE PARISH, LA LAFAYETTE PARISH CONVENTION & VISITORS COMMISSION LAFOURCHE PARISH, LA KAUAI COUNTY, HI KLAMATH COUNTY, OR LAKE COUNTY, OR LANE COUNTY, OR LINCOLN COUNTY, OR LINN COUNTY, OR LIVINGSTON PARISH, LA MALHEUR COUNTY, OR MAUI COUNTY, HI MARION COUNTY, SALEM, OR MORROW COUNTY, OR MULTNOMAH COUNTY, OR MULTNOMAH COUNTY BUSINESS AND COMMUNITY SERVICES, OR MULTNOMAH COUNTY SHERIFFS OFFICE, OR MULTNOMAH LAW LIBRARY, OR ORLEANS PARISH, LA PLAQUEMINES PARISH, LA POLK COUNTY, OR RAPIDES PARISH, LA SAINT CHARLES PARISH, LA SAINT CHARLES PARISH PUBLIC SCHOOLS, LA SAINT LANDRY PARISH, LA SAINT TAMMANY PARISH, LA SHERMAN COUNTY, OR TERREBONNE PARISH, LA TILLAMOOK COUNTY, OR TILLAMOOK COUNTY SHERIFF'S OFFICE, OR TILLAMOOK COUNTY GENERAL HOSPITAL, OR UMATILLA COUNTY, OR UNION COUNTY, OR WALLOWA COUNTY, OR WASCO COUNTY, OR WASHINGTON COUNTY, OR WEST BATON ROUGE PARISH, LA WHEELER COUNTY, OR YAMHILL COUNTY, OR COUNTY OF BOX ELDER, UT COUNTY OF CACHE, UT COUNTY OF RICH, UT COUNTY OF WEBER, UT COUNTY OF MORGAN, UT COUNTY OF DAVIS, UT COUNTY OF SUMMIT, UT COUNTY OF DAGGETT, UT COUNTY OF SALT LAKE, UT COUNTY OF TOOELE, UT COUNTY OF UTAH, UT COUNTY OF WASATCH, UT COUNTY OF DUCHESNE, UT COUNTY OF UINTAH, UT COUNTY OF CARBON, UT COUNTY OF SANPETE, UT COUNTY OF JUAB, UT COUNTY OF MILLARD, UT COUNTY OF SEVIER, UT COUNTY OF EMERY, UT COUNTY OF GRAND, UT COUNTY OF BEVER, UT COUNTY OF PIUTE, UT COUNTY OF WAYNE, UT COUNTY OF SAN JUAN, UT COUNTY OF GARFIELD, UT COUNTY OF KANE, UT COUNTY OF IRON, UT COUNTY OF WASHINGTON, UT OTHER AGENCIES INCLUDING ASSOCIATIONS, BOARDS, DISTRICTS, COMMISSIONS, COUNCILS, PUBLIC CORPORATIONS, PUBLIC DEVELOPMENT AUTHORITIES, RESERVATIONS AND UTILITIES INCLUDING BUT NOT LIMITED TO: BANKS FIRE DISTRICT, OR BATON ROUGE WATER COMPANY BEND METRO PARK AND RECREATION DISTRICT BIENVILLE PARISH FIRE PROTECTION DISTRICT 6, LA BOARDMAN PARK AND RECREATION DISTRICT CENTRAL CITY ECONOMIC OPPORTUNITY CORP, LA CENTRAL OREGON INTERGOVERNMENTAL COUNCIL CITY OF BOGALUSA SCHOOL BOARD, LA CLACKAMAS RIVER WATER CLATSKANIE PEOPLE'S UTILITY DISTRICT CLEAN WATER SERVICES CONFEDERATED TRIBES OF THE UMATILLA INDIAN RESERVATION COOS FOREST PROTECTIVE ASSOCIATION CHEHALEM PARK AND RECREATION DISTRICT DAVID CROCKETT STEAM FIRE COMPANY #1, LA EUGENE WATER AND ELECTRIC BOARD HONOLULU INTERNATIONAL AIRPORT Requirements for National Cooperative Contract Page 24 of 26 HOODLAND FIRE DISTRICT #74 HOUSING AUTHORITY OF PORTLAND ILLINOIS VALLEY FIRE DISTRICT LAFAYETTE AIRPORT COMMISSION, LA LAFOURCHE PARISH HEALTH UNIT – DHH-OPH REGION 3 LOUISIANA PUBLIC SERVICE COMMISSION, LA LOUISIANA WATER WORKS MEDFORD WATER COMMISSION MELHEUR COUNTY JAIL, OR METRO REGIONAL GOVERNMENT METRO REGIONAL PARKS METROPOLITAN EXPOSITION RECREATION COMMISSION METROPOLITAN SERVICE DISTRICT (METRO) MULTNOMAH EDUCATION SERVICE DISTRICT NEW ORLEANS REDEVELOPMENT AUTHORITY, LA NORTHEAST OREGON HOUSING AUTHORITY, OR PORT OF BRANDON, OR PORT OF MORGAN CITY, LA PORTLAND DEVELOPMENT COMMISSION, OR PORTLAND FIRE AND RESCUE PORTLAND HOUSING CENTER, OR OREGON COAST COMMUNITY ACTION OREGON HOUSING AND COMMUNITY SERVICES OREGON LEGISLATIVE ADMINISTRATION ROGUE VALLEY SEWER, OR SAINT LANDRY PARISH TOURIST COMMISSION SAINT MARY PARISH REC DISTRICT 2 SAINT MARY PARISH REC DISTRICT 3 SAINT TAMMANY FIRE DISTRICT 4, LA SALEM MASS TRANSIT DISTRICT SEWERAGE AND WATER BOARD OF NEW ORLEANS, LA SOUTH LAFOURCHE LEVEE DISTRICT, LA TRI-COUNTY METROPOLITAN TRANSPORTATION DISTRICT OF OREGON TUALATIN HILLS PARK & RECREATION DISTRICT TUALATIN VALLEY FIRE & RESCUE TUALATIN VALLEY WATER DISTRICT WILLAMALANE PARK AND RECREATION DISTRICT WILLAMETTE HUMANE SOCIETY K-12 INCLUDING BUT NOT LIMITED TO: ACADIA PARISH SCHOOL BOARD BEAVERTON SCHOOL DISTRICT BEND-LA PINE SCHOOL DISTRICT BOGALUSA HIGH SCHOOL, LA BOSSIER PARISH SCHOOL BOARD BROOKING HARBOR SCHOOL DISTRICT CADDO PARISH SCHOOL DISTRICT CALCASIEU PARISH SCHOOL DISTRICT CANBY SCHOOL DISTRICT CANYONVILLE CHRISTIAN ACADEMY CASCADE SCHOOL DISTRICT CASCADES ACADEMY OF CENTRAL OREGON CENTENNIAL SCHOOL DISTRICT CENTRAL CATHOLIC HIGH SCHOOL CENTRAL POINT SCHOOL DISTRICT NO.6 CENTRAL SCHOOL DISTRICT 13J COOS BAY SCHOOL DISTRICT NO.9 CORVALLIS SCHOOL DISTRICT 509J COUNTY OF YAMHILL SCHOOL DISTRICT 29 CULVER SCHOOL DISTRICT DALLAS SCHOOL DISTRICT NO.2 DAVID DOUGLAS SCHOOL DISTRICT DAYTON SCHOOL DISTRICT NO.8 DE LA SALLE N CATHOLIC HS DESCHUTES COUNTY SCHOOL DISTRICT NO.6 DOUGLAS EDUCATIONAL DISTRICT SERVICE DUFUR SCHOOL DISTRICT NO.29 EAST BATON ROUGE PARISH SCHOOL DISTRICT ESTACADA SCHOOL DISTRICT NO.10B FOREST GROVE SCHOOL DISTRICT GEORGE MIDDLE SCHOOL GLADSTONE SCHOOL DISTRICT GRANTS PASS SCHOOL DISTRICT 7 GREATER ALBANY PUBLIC SCHOOL DISTRICT GRESHAM BARLOW JOINT SCHOOL DISTRICT HEAD START OF LANE COUNTY HIGH DESERT EDUCATION SERVICE DISTRICT HILLSBORO SCHOOL DISTRICT HOOD RIVER COUNTY SCHOOL DISTRICT JACKSON CO SCHOOL DIST NO.9 JEFFERSON COUNTY SCHOOL DISTRICT 509-J JEFFERSON PARISH SCHOOL DISTRICT JEFFERSON SCHOOL DISTRICT JUNCTION CITY SCHOOLS, OR KLAMATH COUNTY SCHOOL DISTRICT KLAMATH FALLS CITY SCHOOLS LAFAYETTE PARISH SCHOOL DISTRICT LAKE OSWEGO SCHOOL DISTRICT 7J LANE COUNTY SCHOOL DISTRICT 4J LINCOLN COUNTY SCHOOL DISTRICT LINN CO. SCHOOL DIST. 95C LIVINGSTON PARISH SCHOOL DISTRICT LOST RIVER JR/SR HIGH SCHOOL LOWELL SCHOOL DISTRICT NO.71 MARION COUNTY SCHOOL DISTRICT MARION COUNTY SCHOOL DISTRICT 103 MARIST HIGH SCHOOL, OR MCMINNVILLE SCHOOL DISTRICT NOAO MEDFORD SCHOOL DISTRICT 549C MITCH CHARTER SCHOOL MONROE SCHOOL DISTRICT NO.1J MORROW COUNTY SCHOOL DIST, OR MULTNOMAH EDUCATION SERVICE DISTRICT MULTISENSORY LEARNING ACADEMY MYRTLE PINT SCHOOL DISTRICT 41 NEAH-KAH-NIE DISTRICT NO.56 NEWBERG PUBLIC SCHOOLS NESTUCCA VALLEY SCHOOL DISTRICT NO.101 NOBEL LEARNING COMMUNITIES NORTH BEND SCHOOL DISTRICT 13 NORTH CLACKAMAS SCHOOL DISTRICT NORTH DOUGLAS SCHOOL DISTRICT NORTH WASCO CITY SCHOOL DISTRICT 21 NORTHWEST REGIONAL EDUCATION SERVICE DISTRICT ONTARIO MIDDLE SCHOOL OREGON TRAIL SCHOOL DISTRICT NOA6 ORLEANS PARISH SCHOOL DISTRICT PHOENIX-TALENT SCHOOL DISTRICT NOA PLEASANT HILL SCHOOL DISTRICT PORTLAND JEWISH ACADEMY PORTLAND PUBLIC SCHOOLS RAPIDES PARISH SCHOOL DISTRICT REDMOND SCHOOL DISTRICT REYNOLDS SCHOOL DISTRICT Requirements for National Cooperative Contract Page 25 of 26 ROGUE RIVER SCHOOL DISTRICT ROSEBURG PUBLIC SCHOOLS SCAPPOOSE SCHOOL DISTRICT 1J SAINT TAMMANY PARISH SCHOOL BOARD, LA SEASIDE SCHOOL DISTRICT 10 SHERWOOD SCHOOL DISTRICT 88J SILVER FALLS SCHOOL DISTRICT 4J SOUTH LANE SCHOOL DISTRICT 45J3 SOUTHERN OREGON EDUCATION SERVICE DISTRICT SPRINGFIELD PUBLIC SCHOOLS SUTHERLIN SCHOOL DISTRICT SWEET HOME SCHOOL DISTRICT NO.55 TERREBONNE PARISH SCHOOL DISTRICT THE CATLIN GABEL SCHOOL TIGARD-TUALATIN SCHOOL DISTRICT UMATILLA MORROW ESD WEST LINN WILSONVILLE SCHOOL DISTRICT WILLAMETTE EDUCATION SERVICE DISTRICT WOODBURN SCHOOL DISTRICT YONCALLA SCHOOL DISTRICT ACADEMY FOR MATH ENGINEERING & SCIENCE (AMES) , UT ALIANZA ACADEMY , UT ALPINE DISTRICT , UT AMERICAN LEADERSHIP ACADEMY , UT AMERICAN PREPARATORY ACADEMY , UT BAER CANYON HIGH SCHOOL FOR SPORTS & MEDICAL SCIENCES , UT BEAR RIVER CHARTER SCHOOL , UT BEAVER SCHOOL DISTRICT , UT BEEHIVE SCIENCE & TECHNOLOGY ACADEMY (BSTA) , UT BOX ELDER SCHOOL DISTRICT , UT CBA CENTER , UT CACHE SCHOOL DISTRICT , UT CANYON RIM ACADEMY , UT CANYONS DISTRICT , UT CARBON SCHOOL DISTRICT , UT CHANNING HALL , UT CHARTER SCHOOL LEWIS ACADEMY , UT CITY ACADEMY , UT DAGGETT SCHOOL DISTRICT , UT DAVINCI ACADEMY , UT DAVIS DISTRICT , UT DUAL IMMERSION ACADEMY , UT DUCHESNE SCHOOL DISTRICT , UT EARLY LIGHT ACADEMY AT DAYBREAK , UT EAST HOLLYWOOD HIGH , UT EDITH BOWEN LABORATORY SCHOOL , UT EMERSON ALCOTT ACADEMY , UT EMERY SCHOOL DISTRICT , UT ENTHEOS ACADEMY , UT EXCELSIOR ACADEMY , UT FAST FORWARD HIGH , UT FREEDOM ACADEMY , UT GARFIELD SCHOOL DISTRICT , UT GATEWAY PREPARATORY ACADEMY , UT GEORGE WASHINGTON ACADEMY , UT GOOD FOUNDATION ACADEMY , UT GRAND SCHOOL DISTRICT , UT GRANITE DISTRICT , UT GUADALUPE SCHOOL , UT HAWTHORN ACADEMY , UT INTECH COLLEGIATE HIGH SCHOOL , UT IRON SCHOOL DISTRICT , UT ITINERIS EARLY COLLEGE HIGH , UT JOHN HANCOCK CHARTER SCHOOL , UT JORDAN DISTRICT , UT JUAB SCHOOL DISTRICT , UT KANE SCHOOL DISTRICT , UT KARL G MAESER PREPARATORY ACADEMY , UT LAKEVIEW ACADEMY , UT LEGACY PREPARATORY ACADEMY , UT LIBERTY ACADEMY , UT LINCOLN ACADEMY , UT LOGAN SCHOOL DISTRICT , UT MARIA MONTESSORI ACADEMY , UT MERIT COLLEGE PREPARATORY ACADEMY , UT MILLARD SCHOOL DISTRICT , UT MOAB CHARTER SCHOOL , UT MONTICELLO ACADEMY , UT MORGAN SCHOOL DISTRICT , UT MOUNTAINVILLE ACADEMY , UT MURRAY SCHOOL DISTRICT , UT NAVIGATOR POINTE ACADEMY , UT NEBO SCHOOL DISTRICT , UT NO UT ACAD FOR MATH ENGINEERING & SCIENCE (NUAMES) , UT NOAH WEBSTER ACADEMY , UT NORTH DAVIS PREPARATORY ACADEMY , UT NORTH SANPETE SCHOOL DISTRICT , UT NORTH STAR ACADEMY , UT NORTH SUMMIT SCHOOL DISTRICT , UT ODYSSEY CHARTER SCHOOL , UT OGDEN PREPARATORY ACADEMY , UT OGDEN SCHOOL DISTRICT , UT OPEN CLASSROOM , UT OPEN HIGH SCHOOL OF UTAH , UT OQUIRRH MOUNTAIN CHARTER SCHOOL , UT PARADIGM HIGH SCHOOL , UT PARK CITY SCHOOL DISTRICT , UT PINNACLE CANYON ACADEMY , UT PIUTE SCHOOL DISTRICT , UT PROVIDENCE HALL , UT PROVO SCHOOL DISTRICT , UT QUAIL RUN PRIMARY SCHOOL , UT QUEST ACADEMY , UT RANCHES ACADEMY , UT REAGAN ACADEMY , UT RENAISSANCE ACADEMY , UT RICH SCHOOL DISTRICT , UT ROCKWELL CHARTER HIGH SCHOOL , UT SALT LAKE ARTS ACADEMY , UT SALT LAKE CENTER FOR SCIENCE EDUCATION, UT SALT LAKE SCHOOL DISTRICT , UT SALT LAKE SCHOOL FOR THE PERFORMING ARTS, UT SAN JUAN SCHOOL DISTRICT , UT SEVIER SCHOOL DISTRICT , UT SOLDIER HOLLOW CHARTER SCHOOL , UT SOUTH SANPETE SCHOOL DISTRICT , UT SOUTH SUMMIT SCHOOL DISTRICT , UT SPECTRUM ACADEMY , UT SUCCESS ACADEMY , UT SUCCESS SCHOOL , UT SUMMIT ACADEMY , UT SUMMIT ACADEMY HIGH SCHOOL , UT SYRACUSE ARTS ACADEMY , UT THOMAS EDISON - NORTH , UT Requirements for National Cooperative Contract Page 26 of 26 TIMPANOGOS ACADEMY , UT TINTIC SCHOOL DISTRICT , UT TOOELE SCHOOL DISTRICT , UT TUACAHN HIGH SCHOOL FOR THE PERFORMING ARTS , UT UINTAH RIVER HIGH , UT UINTAH SCHOOL DISTRICT , UT UTAH CONNECTIONS ACADEMY , UT UTAH COUNTY ACADEMY OF SCIENCE , UT UTAH ELECTRONIC HIGH SCHOOL , UT UTAH SCHOOLS FOR DEAF & BLIND , UT UTAH STATE OFFICE OF EDUCATION , UT UTAH VIRTUAL ACADEMY , UT VENTURE ACADEMY , UT VISTA AT ENTRADA SCHOOL OF PERFORMING ARTS AND TECHNOLOGY , UT WALDEN SCHOOL OF LIBERAL ARTS , UT WASATCH PEAK ACADEMY , UT WASATCH SCHOOL DISTRICT , UT WASHINGTON SCHOOL DISTRICT , UT WAYNE SCHOOL DISTRICT , UT WEBER SCHOOL DISTRICT , UT WEILENMANN SCHOOL OF DISCOVERY , UT HIGHER EDUCATION ARGOSY UNIVERSITY BATON ROUGE COMMUNITY COLLEGE, LA BIRTHINGWAY COLLEGE OF MIDWIFERY BLUE MOUNTAIN COMMUNITY COLLEGE BRIGHAM YOUNG UNIVERSITY - HAWAII CENTRAL OREGON COMMUNITY COLLEGE CENTENARY COLLEGE OF LOUISIANA CHEMEKETA COMMUNITY COLLEGE CLACKAMAS COMMUNITY COLLEGE COLLEGE OF THE MARSHALL ISLANDS COLUMBIA GORGE COMMUNITY COLLEGE CONCORDIA UNIVERSITY GEORGE FOX UNIVERSITY KLAMATH COMMUNITY COLLEGE DISTRICT LANE COMMUNITY COLLEGE LEWIS AND CLARK COLLEGE LINFIELD COLLEGE LINN-BENTON COMMUNITY COLLEGE LOUISIANA COLLEGE, LA LOUISIANA STATE UNIVERSITY LOUISIANA STATE UNIVERSITY HEALTH SERVICES MARYLHURST UNIVERSITY MT. HOOD COMMUNITY COLLEGE MULTNOMAH BIBLE COLLEGE NATIONAL COLLEGE OF NATURAL MEDICINE NORTHWEST CHRISTIAN COLLEGE OREGON HEALTH AND SCIENCE UNIVERSITY OREGON INSTITUTE OF TECHNOLOGY OREGON STATE UNIVERSITY OREGON UNIVERSITY SYSTEM PACIFIC UNIVERSITY PIONEER PACIFIC COLLEGE PORTLAND COMMUNITY COLLEGE PORTLAND STATE UNIVERSITY REED COLLEGE RESEARCH CORPORATION OF THE UNIVERSITY OF HAWAII ROGUE COMMUNITY COLLEGE SOUTHEASTERN LOUISIANA UNIVERSITY SOUTHERN OREGON UNIVERSITY (OREGON UNIVERSITY SYSTEM) SOUTHWESTERN OREGON COMMUNITY COLLEGE TULANE UNIVERSITY TILLAMOOK BAY COMMUNITY COLLEGE UMPQUA COMMUNITY COLLEGE UNIVERSITY OF HAWAII BOARD OF REGENTS UNIVERSITY OF HAWAII-HONOLULU COMMUNITY COLLEGE UNIVERSITY OF OREGON-GRADUATE SCHOOL UNIVERSITY OF PORTLAND UNIVERSITY OF NEW ORLEANS WESTERN OREGON UNIVERSITY WESTERN STATES CHIROPRACTIC COLLEGE WILLAMETTE UNIVERSITY XAVIER UNIVERSITY UTAH SYSTEM OF HIGHER EDUCATION, UT UNIVERSITY OF UTAH, UT UTAH STATE UNIVERSITY, UT WEBER STATE UNIVERSITY, UT SOUTHERN UTAH UNIVERSITY, UT SNOW COLLEGE, UT DIXIE STATE COLLEGE, UT COLLEGE OF EASTERN UTAH, UT UTAH VALLEY UNIVERSITY, UT SALT LAKE COMMUNITY COLLEGE, UT UTAH COLLEGE OF APPLIED TECHNOLOGY, UT STATE AGENCIES ADMIN. SERVICES OFFICE BOARD OF MEDICAL EXAMINERS HAWAII CHILD SUPPORT ENFORCEMENT AGENCY HAWAII DEPARTMENT OF TRANSPORTATION HAWAII HEALTH SYSTEMS CORPORATION OFFICE OF MEDICAL ASSISTANCE PROGRAMS OFFICE OF THE STATE TREASURER OREGON BOARD OF ARCHITECTS OREGON CHILD DEVELOPMENT COALITION OREGON DEPARTMENT OF EDUCATION OREGON DEPARTMENT OF FORESTRY OREGON DEPT OF TRANSPORTATION OREGON DEPT. OF EDUCATION OREGON LOTTERY OREGON OFFICE OF ENERGY OREGON STATE BOARD OF NURSING OREGON STATE DEPT OF CORRECTIONS OREGON STATE POLICE OREGON TOURISM COMMISSION OREGON TRAVEL INFORMATION COUNCIL SANTIAM CANYON COMMUNICATION CENTER SEIU LOCAL 503, OPEU SOH- JUDICIARY CONTRACTS AND PURCH STATE DEPARTMENT OF DEFENSE, STATE OF HAWAII STATE OF HAWAII STATE OF HAWAII, DEPT. OF EDUCATION STATE OF LOUISIANA STATE OF LOUISIANA DEPT. OF EDUCATION STATE OF LOUISIANA, 26TH JUDICIAL DISTRICT ATTORNEY STATE OF UTAH NOTICE OF SOLICITATION SOLICITATION # 2018011 September 20, 2017 REQUEST FOR PROPOSAL FOR: INFORMATION TECHNOLOGY SOLUTIONS & SERVICES PROPOSAL DUE DATE AND TIME: October 23, 2017 – 3:00 P.M. LOCAL ARIZONA TIME Notice is hereby given sealed proposals will be received by the Purchasing Division, City of Mesa, Mesa City Plaza, 20 East Main Street, Suite #400, Mesa, Arizona 85201, until the date and time cited above. Proposals received by the correct date and time will be opened publicly and read aloud by the Purchasing Division’s Procurement Administrator (or designated representative). Issue Request for Proposals September 20, 2017 Pre-Proposal Conference (Optional) October 3, 2017 –10:00 am local Arizona time Questions due from Proposers October 6, 2017 –3:00 pm local Arizona time City of Mesa response to Questions October 12, 2017 Proposal Due Date October 23, 2017 – 3:00 pm local Arizona time VENDOR CONFERENCE / SITE VISIT: Date and Time: October 3, 2017 – 10:00 a.m. local Arizona time Location: City of Mesa – Mesa City Plaza 20 E Main Street, Conference Room 450 South Mesa, AZ 85201 Teleconference Number: 480-644-6120; PIN 319405 The conference provides interested parties an opportunity to discuss the City and National IPA's needs and ask questions. Please read the entire solicitation package and submit the proposal in accordance with the instructions. This document (less this invitation and the instructions) and any required response documents, attachments, and submissions will constitute the proposal. Proposal envelopes with insufficient postage will not be accepted by the City of Mesa. Proposals must be in the actual possession of the Purchasing Division Office at the location indicated, on or prior to the exact date and time indicated above. Late submittals shall not be considered under any circumstances. Questions concerning this solicitation should be directed, IN WRITING, to the following Purchasing contacts or their designees: Technical Questions: General or Process Questions: Sharon Brause, CPPO, CPPB, CPCP Cyndi Gonzales Senior Procurement Officer Procurement Specialist PHONE: 480-644-2815 PHONE: 480-644-2179 FAX: (480) 644-2655 FAX: (480) 644-2655 Sharon.Brause@MesaAZ.gov Cyndi.Gonzales@MesaAZ.gov NOTE: THE CITY OF MESA PUBLISHES ITS SOLICITATIONS, ATTACHMENTS, AND ADDENDA ONLINE AND THEY ARE AVAILABLE FOR VIEWING AND/OR DOWNLOADING AT THE FOLLOWING INTERNET ADDRESS: http://www.mesaaz.gov/business/purchasing All vendors wishing to conduct business with the City are required to register and maintain all information used for the notification of solicitation opportunities and issuance of payment in the Vendor Self Service (VSS) system. To register and view additional vendor information, go to http://mesaaz.gov/business/purchasing/vendor-self-service. TABLE OF CONTENTS 2018011 Page 2 of 41 PAGE NOTICE 1 TABLE OF CONTENTS 2 SECTIONS: INSTRUCTIONS 3 - 13 SCOPE OF WORK 14 - 18 ATTACHMENTS: ATTACHMENT A PRICING 19 ATTACHMENT B REQUIRED RESPONSE FORMS 20 (5 pages) ATTACHMENT C RESPONDENT QUESTIONNAIRE 21 ATTACHMENT D NATIONAL IPA PRINCIPAL PROCUREMENT AGENCY (“PPA”) 22 EXHIBITS: EXHIBIT 1 DRAFT AGREEMENT 23 - 39 EXHIBIT 2 MAILING LABEL 40 INSTRUCTIONS 2018011 Page 3 of 41 1. GENERAL: Please read the entire Solicitation package and all attachments before submitting a Response. Responses must be in accordance with the provisions, specifications and instructions set forth herein and will be accepted until the date and time the Response is due. 2. VENDOR QUESTIONS: All questions regarding the contents of this Solicitation, and Solicitation process (including requests for ADA accommodations), must be directed solely to the Procurement Officer or the Purchasing Administrator. Questions should be submitted in writing via letter, fax or email. Questions received after due date and time for vendor questions (October 6th) may be answered at the discretion of the City. 3. INSTRUCTIONS FOR PREPARING AND SUBMITTING RESPONSE: Respondents will have the option to submit their responses either electronically or physically through hard copy response. Respondents shall provide their Responses in accordance with the following form and content requirements: ELECTRONIC RESPONSE: a. Responses shall be submitted through the City of Mesa’s Purchasing Website at http://www.mesaaz.gov/business/purchasing/bid-opportunities under the appropriate solicitation opportunity. Submissions submitted elsewhere or under the wrong solicitation will not be considered. b. Responses must be signed by an authorized representative of Respondent with the authority to bind Respondent to make such commitments to the City set forth in the Response. c. Responses should be specific to the Solicitation and present details on all requested information in a concise manner. HARD COPY RESPONSE: a. Submit one (1) signed original hardcopy of all Response documents along with three (3) copies. Do not use spiral binding or comb binding on Responses or any Response documents. Three-ring binders are preferred for large submissions. b. Submit one (1) flash drive providing all Response documents in PDF, Word, and Excel (utilize Excel only if spreadsheets/graphs/charts are included as a part of the Response). c. All Responses must be signed, sealed and addressed to the Purchasing Division and Respondents shall address all Responses identified with a shipping address, serial number, and title in the following manner: City of Mesa Mesa City Plaza - Purchasing Division 20 East Main Street, Suite 400 Mesa, Arizona 85201 RFP No. 2018011 – Information Technology Solutions & Services d. Responses must be signed by an authorized representative of Respondent with the authority to bind Respondent to make such commitments to the City set forth in the Response. e. Responses should be specific to the Solicitation and present details on all requested information in a concise manner. INSTRUCTIONS 2018011 Page 4 of 41 4. RESPONSE FORMAT: Table of Contents. Identify contents by tab and page number TAB 1 - Letter of Transmittal. A brief letter of transmittal should be submitted that includes the following information: 1. The Respondent’s understanding of the work to be performed. 2. A positive commitment to perform the service within the time period specified. 3. The names of key persons, representatives, project managers who will be the main contacts for the City regarding this Solicitation. TAB 2 - Program Description AND Method of Approach. Clearly define the services/products offered and Respondent’s method of approach to including, but not limited, to the following criteria: 1. Provide a response to the national program. a. Include a detailed response to Attachment D, Exhibit A, National IPA Response for National Cooperative contract. Responses should demonstrate a strong national presence, describe how offeror will educate its national sales force about the contract, describe how products and services will be distributed nationwide, include a plan for marketing the products and services nationwide, and describe how volume will be tracked and reported to National IPA. b. The successful offeror will be required to sign Attachment D, Exhibit B, National IPA Administration Agreement. Offerors should have any reviews required to sign the document prior to submitting a response. Offeror’s response should include any proposed exceptions to the National IPA Administration Agreement. 2. Provide a description of the product lines that can be provided by your firm. 3. Provide a description of the services that can be provided by your firm. 4. Provide a detailed description of any programs available for Participating Agencies seeking to set and meet goals for historically underutilized businesses (e.g. minority, woman, veteran, disabled, etc.). Discuss how transactions between offeror and tier one suppliers and Participating Agencies and tier one suppliers will be tracked and accounted for and any quality assurance measures that are in place to assure a high-performance standard for tier one suppliers. 5. Describe how your firm proposes to distribute the products/services nationwide. 6. Identify all subcontractors that will be involved in processing agency orders under this contract and describe their distribution/delivery processes. 7. Provide the number, size and location of your firm’s distribution facilities, warehouses, and retail network as applicable Provide information on the productivity of your facilities and systems as follows: a. How many orders are processed daily on an average b. How many devices does your facility configure daily on an average c. What is the highest number of orders processed in a single day d. What is the highest number of devices configured in a single day from the facilities described 8. State any return and restocking policy, and any fees, if applicable associated with returns. 9. Describe your invoicing process. Is electronic invoicing available? Is summary invoicing available? Are there other options on how an agency receives an invoice? 10. Describe your delivery commitment: a. What is your fill rate guarantee? b. What are your delivery days? c. Do you offer next day delivery? d. How do you facilitate emergency orders? e. Are shipping charges exempt for ALL who use this contract? f. Describe how problems (such as a customer ordering a wrong product or a customer receiving a defective product; etc.) are resolved. 11. Describe the types of customer service available to agencies that use this contract: Deleted: materials INSTRUCTIONS 2018011 Page 5 of 41 a. Is online support available? b. Is phone support available? c. Can agencies request a dedicated service representative and/or a dedicated service team? If a dedicated customer service representative and/or team are assigned, what types of services does the representative/team provide? How do you help the customer manage our account? d. How are problems resolved? e. What are the location and hours of your call centers? f. What response time is guaranteed when a customer service request is made? g. Do you measure/track the success of your customer service program? If so, how do you do this, and what are your findings? h. Describe in detail your company’s ability to hold/warehouse customers’ orders and if there are any cost associated. 12. Describe how your company will assist customers in navigating OEM warranty process. 13. Describe how your firm will notify customers of new products. 14. Describe how your company will assist and support customers when their standardized is reaching EOL (end of life). 15. Describe if technical support questions are handled the same way as a customer service request? If not, describe the type(s) of technical support available, the location of technical support, and the hours of technical support. Is it the intent to use employees of your company or will this be an outsourced function? 16. Describe what other services you offer that would be applicable to this contract (e.g., cloud, services, maintenance, implementation, design, analysis, training, repair, etc.) 17. Describe options for leasing and financing and the various payment methods accepted. TAB 3 - Pricing Forms. The cost portion of the Response should include the following criteria: 1. Provide price proposal as requested on the Pricing Document (Attachment A – “National” TAB) attached herein. In addition to indicating your proposed discounts on the Price Page, you must also apply those discounts to the sample items listed in the City’s Market Basket listed in Attachment A. 2. Propose and provide details of additional discounts or rebates for volume orders, special manufacturers’ offers, free goods program, total annual spend, etc. TAB 4 - Qualifications. (Abilities, Experience and Expertise). The following information should be included: 1. Provide a brief history and description of your firm. Discuss firm’s national presence in the IT solutions industry. 2. Provide the total number and location of sales persons employed by your firm. 3. Provide the number and location of support centers (if applicable). 5. Provide Public sector sales figures for 2014, 2015 and 2016 and the percentage mix of hardware, software, and services 6. Please submit your FEIN and Dunn & Bradstreet report. 7. Provide a summarization of your experience in performing work similar to that outlined in this solicitation. 8. Provide a minimum of three references for which your firm has provided the same solution (please include company name, address, contact person, phone number, email address and dates of service). References from other public agencies, particularly municipal governments, are preferred. 9. Provide resumes and three references (preferably from the public sector) for the primary customer service representative(s). Resume(s) shall include their title within the organization, a description of the type of work they would perform, the individuals' credentials, background, years of experience and relevant experience, etc. References should include the contact’s name, phone number, email, position, organization, and the work which the Offeror performed for the reference. 10. Provide information regarding if your organization ever failed to complete any work awarded. INSTRUCTIONS 2018011 Page 6 of 41 11. Provide information regarding if your firm, either presently or in the past, has been involved in any litigation, bankruptcy, or reorganization. TAB 5 – Technology. 1. Describe your website and the ease-of-use for customers to perform the following types of tasks: a. to search for products b. to find alternate products (if a certain product is not available) c. to perform side-by-side price comparison of products d. to order products f. to track order status, to include backordered items g. to determine when an item was received and who received it h. to restrict/block the ordering of certain line items and to restrict/block the ordering of groups i. to create approval paths/levels for orders, to include creating an approval path for restricted items j. to create a “favorites” list or subscribed purchases other personalized list of frequently ordered items k. to create a “shared” list for an agency to use l. to obtain online customer service m. to receive online training n. to accept credit card payment (and describe the level of data offered; also describe your security measures for credit card orders) o. to track their budget for purchases p. to generate reports 2. Describe additional functionality offered by your website. Provide screen shots, a demo “CD/jump drive,” a demo URL, a manual, etc., or any other format that will aid the City in our evaluation of your website. 3. Describe any national awards and/or other recognition that your website has received. 4. Describe the hours your website is available? What are your hours of downtime, such as for system maintenance? 5. Does your website offer real time product availability? 6. How does your company leverage your website to inform customers of the additional savings that may be available. 7. Describe the types of email confirmations that your website generates. What events trigger an email going to the customer? 8. Describe the registration process to set up new customers for your online ordering process. Is self-registration available? If an agency does not want self-registration, are you available to assist in the registration process? 9. Describe if your website can be customized for an agency’s specific needs, such as placing our logo on your website, associating an agency blanket purchase order number on all orders, creating a bulletin board or other place to display customized messages, displaying approved configurations, naming certain fields (i.e., user defined fields, ability to include budget information), etc. 10. Describe the types of online reporting that are available. Is customized reporting available? 11. Describe your online return process (if available). 12. Describe any third-party integration that you have successfully implemented. For example, is your website integrated with any third-party procurement, financial, or purchasing/credit card systems? Is there a cost for these services? 13. Describe your strategic vision for your website – i.e., Is new functionality expected to be added? If so, describe the functionality and the timeline for implementation. How often is the web redesigned? As technology evolves (for example, new search engines are more robust), does your website evolve, too? Etc. TAB 6 - Other Forms. The following forms should be completed and signed: INSTRUCTIONS 2018011 Page 7 of 41 1. Vendor Information form 2. Exceptions & Confidential Information form 3. General Questionnaire form 4. Lawful Presence Affidavit 5. Respondent Certification form (Offer and Acceptance) 6. Respondent Questionnaire 7. W-9 Form. All responses should include a fully completed, current W-9 form. Failure to include the W-9 will not disqualify your response, however the W-9 must be submitted to the City prior to the execution of any contract pursuant to this Solicitation. (http://www.irs.gov/pub/irs-pdf/fw9.pdf) 5. RESPONSE CHECKLIST: This checklist is provided for your convenience. It is not necessary to return a copy with your Response. Only submit the requested forms and any other requested or descriptive literature. Response will be sent in time to be received by City before Response due date and time. Original and proper number of copies submitted Response container properly labeled Pricing, math double-checked, form completed and included (Attachment A) Required Response Forms completed and included (Attachment B) Respondent Questionnaire form completed and included (Attachment C) Response to a National Program (Attachment D) W-9 Request for Taxpayer Identification Number and Certification form completed and included (http://www.irs.gov/pub/irs-pdf/fw9.pdf) Warranty information, as applicable 6. ADDENDA: Any changes to the solicitation document will be in the form of an addendum. Addenda are posted on the City website. Contractors are cautioned to check the Purchasing Website or the Self-Service portal for addenda prior to submitting their Response. The City will not be held responsible if a vendor fails to receive any addenda issued. The City shall not be responsible for any oral changes to these specifications made by any employees or officer of the City and Contractors are cautioned not to rely on any such changes. Failure to acknowledge receipt of an addendum may result in disqualification of a Response. 7. RESPONSE OPENING: The City will open all Responses properly and timely submitted, and will record the names and other information specified by law and rule. No responsibility will attach to the City of Mesa, its employees or agents for premature opening of a Response that is not properly addressed and identified. All Responses become the property of the City and will not be returned except in the case of a late submission. Results, as read at the public opening, will be posted on the City website. Responses will be available to the public in accordance with the City Procurement Rules. 8. LATE RESPONSES: The Respondent assumes responsibility for having the Response delivered on time at the place specified. All Responses received after the Response Due date and time shall not be considered and will be returned unopened to the Respondent. The Respondent assumes the risk of any delay in the mail or in handling of the mail by employees of the City of Mesa, or any private courier, regardless whether sent by mail or by means of personal delivery. Respondents must allow adequate time to accommodate all registration and security screenings at the delivery site; a valid photo I.D. may be required. It shall not be sufficient to show that Respondent mailed or commenced delivery before the due date and time as the Response must be received by the City prior to the specified date/time. All times are Mesa, Arizona local times. Respondents agree to accept the time stamp in the City Purchasing Office as the official time. 9. RESPONSE FIRM TIME: Responses shall remain firm and unaltered after opening for 180 Days unless the time is extended or amended as agreed upon Respondent and the City. Examples of where an extension or amendment may be necessary include, but are not limited to: (i) contract negotiations with selected Respondent; (ii) submission of a Best and Final Offer by Respondent; INSTRUCTIONS 2018011 Page 8 of 41 (iii) City needing additional time to review responses. The City may accept the Response, subject to successful contract negotiations, at any time during this period. 10. LOBBYING PROHIBITION: Any communication regarding this Solicitation for the purpose of influencing the process or the award, between any person or affiliates seeking an award from this Solicitation and the City including, but not limited to, City Council, City employees, and consultants hired to assist the City in the Solicitation, is prohibited. This prohibition is imposed from the time of the first public notice of the Solicitation until the City cancels the Solicitation, rejects all Responses, awards a contract, or otherwise takes action which ends the Solicitation process. This section shall not prohibit public comment at any City Council meeting, study session, or City Council committee meeting. This prohibition shall not apply to Respondent-initiated communication with the contact(s) identified in the Solicitation or City-initiated communications for the purposes of conducting the procurement including, but not limited to, vendor conferences, clarification of Responses, presentations if provided pursuant to the Solicitation, requests for Best and Final Responses (as set forth in the City Procurement Rules), contract negotiations, protest/appeal resolution, or surveying non- responsive vendors. Violations of this provision shall be reported to the Purchasing Administrator. Persons violating this prohibition may be subject to a warning letter or rejection of their Response depending on the nature of the violation. 11. LAWFUL PRESENCE IN THE UNITED STATES: Arizona Revised Statutes § 1-501 and § 1-502 require all persons who will be awarded a contract (a Public Benefit as defined in 8 USC Section 1621) must demonstrate they are lawfully present in the United States. Person under the statute is defined as a natural person and therefore excludes Limited Liability Companies, Corporations, Partnerships, or other similar types of business entities as indicated on a W-9 form. Individuals (natural persons) or Sole Proprietorships must complete the affidavit in the “Required Response Forms” section of this Solicitation. Respondents that fail to provide a completed affidavit and provided the necessary documentation may be deemed non-responsive. 12. COMMENCEMENT OF WORK: If a Respondent begins any billable work prior to the City’s final approval and execution of the contract, Respondent does so at its own risk. 13. RESPONSIBILITY TO READ AND UNDERSTAND: Failure to read, examine and understand the Solicitation and any of its addenda will not excuse any failure to comply with the requirements of the Solicitation or any resulting contract, nor shall such failure be a basis for claiming additional compensation. The City is not responsible for and will not pay any costs associated with the preparation and submission of a Response. Respondents are cautioned to verify their Responses before submission, as amendments to or withdrawal of Responses submitted after time specified for opening of Responses may not be considered. The City will not be responsible for any Respondent errors or omissions. INSTRUCTIONS 2018011 Page 9 of 41 14. FORM AND CONTENT OF RESPONSES: Responses may be submitted on-line (if the option is indicated), mailed or hand-delivered. E-mail or fax submissions will not be accepted. Unless otherwise instructed or allowed, Responses shall be submitted on the forms provided. An original and the designated number of copies of each Response are required. Responses, including modifications, must be submitted in ink, typed, electronically, or printed form and signed by an authorized representative of the Respondent. Please line through and initial rather than erase changes. Any modifications to the Solicitation must be identified in the “Exceptions” section of the required response forms. The City does not encourage exceptions. The City is not required to grant exceptions and depending on the exception, the City may reject the Response as non- responsive. The City reserves the right at its sole discretion to negotiate exceptions with a Respondent. If the Response is not properly signed or if any changes are not initialed, it may be considered non-responsive. In the event of a disparity between the unit price and the extended price, the unit price shall prevail unless obviously in error, as determined by the City. The City may require that Responses be submitted on disk, flash drive, or through electronic means. The Response must provide all information requested and must address all points set forth in the Solicitation. 15. SPECIFICATIONS: Technical specifications define the minimum acceptable standard. When the specification calls for “Brand Name or Equal,” the brand name product is acceptable. The use of a brand name is for the purpose of describing the standard of quality, performance, and characteristics desired and is not intended to limit or restrict competition. If a Respondent wishes to provide a material or service that is not the brand name, the equivalent material or service must meet the standard of quality of the brand name product, which is determined at the City’s sole discretion. Equivalent products will be considered upon showing the other product meets stated specifications and is equivalent to the brand name product in terms of quality, performance and desired characteristics. Products that are substantially equivalent to those brands designated will qualify for consideration. Minor differences that do not affect the suitability of the supply or service for the City’s needs may be accepted. Burden of proof that the product meets the minimum standards or is equal to the brand name product is on the Respondent. The City reserves the right to reject Responses that the City deems unacceptable for any reason. 16. MODIFICATION/WITHDRAWAL OF RESPONSE: Written requests to modify or withdraw a Response received by the City prior to the scheduled opening time for Responses will be accepted and will be corrected after the Response due date and time. No oral requests will be allowed. Requests must be addressed and labeled in the same manner as the Response and marked as a MODIFICATION or WITHDRAWAL of the Response. Requests for withdrawal after the Response Due date and time will only be granted upon proof of undue hardship and may result in the forfeiture of any Response security. Any withdrawal after the Response due date and time shall be allowed solely at the City’s discretion. 17. DEBARMENT DISCLOSURE: If the Respondent has been debarred, suspended, or otherwise lawfully precluded from participating in any public procurement activity, including being disapproved as a subcontractor with any federal, state, or local government or agency, or if any such preclusion from participation from any public procurement activity is currently pending, the Respondent shall include a letter with its Response identifying the name and address of the governmental unit, the effective date of the suspension or debarment, the duration of the suspension or debarment, and the relevant circumstances relating to the suspension or debarment. If suspension or debarment is currently pending, a detailed description of all relevant circumstances must be provided by the Respondent, including the details enumerated above. A Response from a Respondent who is currently debarred, suspended or otherwise lawfully prohibited from any public procurement activity may be rejected. Failure of a Respondent to disclose a debarment or suspension in accordance with this Section may result in the Response being disqualified for award of the Solicitation. INSTRUCTIONS 2018011 Page 10 of 41 18. RESERVATIONS: The City reserves the right to reject any or all Responses or any part thereof; to re-issue the Solicitation; to reject non-responsive or non-responsible Responses; to reject unbalanced Responses; to reject Responses where the terms, prices, or awards are conditioned upon another event; to reject individual Responses for failure to meet any requirement; to award by item, part or portion of an item, group of items, geographical region or total; to make multiple awards; to waive minor irregularities, defects, omissions, informalities, technicalities or form errors in any Response; to conduct exclusive or concurrent negotiations of any terms, conditions, or exceptions taken by a Respondent or the terms of any agreement/document a Respondent would require the City to sign should Respondent be awarded a contract; and to reject Responses that are outside the City’s budgeted amount for the products or services that are the subject of the Solicitation. The City may seek clarification of the Response from Respondent at any time, and failure to respond is cause for rejection. Submission of a Response confers no right to an award or to a subsequent contract. The City is charged by its Charter to make an award that is in the best interest of the City. All decisions on compliance, evaluation, terms and conditions shall be made solely at the City’s discretion and made to favor the City. No binding contract will exist between the Respondent and the City until the City executes a written contract or purchase order. 19. EXCEPTIONS TO A SOLICITATION: Changes to the Solicitation document requested by a Respondent may not be acknowledged or accepted by the City. Award or execution of a contract does not constitute acceptance of a changed term, condition or specification in the Solicitation unless specifically acknowledged and agreed to by the City. The copy of the Solicitation, including all addenda, maintained and published by the City shall be the official Solicitation document. Any exception to the Solicitation must be set forth in the “Exceptions” portion of the Response; any exceptions not indicated in the “Exceptions” portion of the Response will be deemed rejected by the City, void and of no contractual significance. The City reserves the right to: (i) reject any or all exceptions requested by a Respondent; (ii), determine a proposal non-responsive due to the exception(s) made by Respondent; (iii) enter into negotiations with a Respondent regarding any of the Respondent’s exceptions; (iv) adjust points from the Respondent’s score in the applicable evaluation criteria category or categories; or (v) accept any or all of a Respondent’s exceptions. 20. COPYING OF RESPONSES: The Respondent hereby grants the City permission to copy all parts of its Response including, without limitation, any documents and/or materials copyrighted by the Respondent. The City’s right to copy shall be for internal use in evaluating the Response. 21. CONTRACTOR ETHICS: Contractors doing business with the City shall adhere to the Procurement Ethics Standards, Article 7 of the Procurement Rules. It is the policy of the City to promote courtesy, fairness, impartiality, integrity, service, professionalism, economy, and government by law in the Procurement process. The responsibility for implementing this policy rests with each individual who participates in the Procurement process, including Respondents and Contractors. The failure of a Respondent or Contractor to meet the ethical standards may result in the disqualification of award under the Solicitation or the termination of a contract with the City. To achieve the purpose of this Section, it is essential Respondents and Contractors doing business with the City observe the ethical standards prescribed herein and in the City Charter, Code Procurement Rules and Management Policy 200. It shall be a breach of ethical standards to: a. Exert any effort to influence any City official, employee or agent to breach the standards of ethical conduct. b. Intentionally invoice any amount greater than provided in a contract or to invoice for products or services not provided. c. Intentionally offer or provide sub-standard products or services or to intentionally not comply with any term, condition, specification or other requirement of a City contract. 22. GIFTS: The City will accept no gifts, gratuities or advertising products from Respondents or prospective Respondents and affiliates. The City may request product samples from Respondents solely for the purpose of product evaluation. Deleted: materials Deleted: materials Deleted: materials or INSTRUCTIONS 2018011 Page 11 of 41 23. EVALUATION PROCESS: Responses will be reviewed by a screening committee comprised of City employees and/or any agents authorized by the City to participate in the evaluation. City staff may initiate discussions with Respondents for clarification purposes; however, a request for clarification is not an opportunity for a Respondent to change the Response. A request for clarification from a Respondent does not guarantee clarification will be requested from any other Respondents. Respondents shall not initiate discussions with any City employee, agent or official as set forth in the Lobbying section of these instructions including, but not limited to, members of the evaluation committee. 24. PRESENTATIONS/INTERVIEWS: The City reserves the right to conduct interviews which may include a demonstration of the supplier’s website with some or all of the offerors at any point during the evaluation process. However, the City may determine that interviews are not necessary. In the event interviews are conducted, information provided during the interview process shall be taken into consideration when evaluating the stated criteria. The City shall not reimburse the offeror for the costs associated with the interview process. 25. SHORT-LISTING: The City, at its sole discretion, may create a short-list of the highest scored Responses based on a preliminary evaluation of the Responses against the evaluation criteria. Only those short-listed Respondents will be invited to give presentations/interviews. Upon conclusion of any presentations/interviews, the City will finalize the scoring against the evaluation criteria. 26. ADDITIONAL INVESTIGATIONS. The City reserves the right to make such additional investigations as it deems necessary to establish the competence and financial stability of any offeror submitting a proposal. 27. PRIOR EXPERIENCE. Experiences with the City and entities that evaluation committee members represent and that are not specifically mentioned in the solicitation response may be taken into consideration when evaluating offers. 28. BEST AND FINAL OFFERS: The City may request Best and Final Offers if the City deems necessary and the City will determine the scope and subject of any Best and Final request. Respondents should not expect the City will always ask for Best and Final Offers. Therefore, all Respondents must submit their best offer based on the specifications, terms and conditions in the Solicitation. 29. CRITERIA FOR EVALUATION AND AWARD: a. The criteria that will be evaluated and their relative weights are: Evaluation Criteria Points Firm’s Proposed Solution Information provided or referenced by Respondents in response to the Solicitation. Sources of information to be evaluated include, but are not limited to, as applicable, Responses, presentations, interviews, and Best and Final Offers. 500 Firm’s Qualifications & Experience Information pertaining to the quality of work, accomplishments, skill, and knowledge regarding a Respondent’s suitability for award. Information can come from any source including, but not limited to, Responses, Best and Final Offers, references, publicly or privately available information, and the City’s experience with a Respondent. 300 Firm’s Proposed Pricing Pricing will be evaluated based on the below criteria. 200 INSTRUCTIONS 2018011 Page 12 of 41 The City has provided various sample items on the City of Mesa Market Basket Pricing (See Attachment A – “Pricing”) for pricing evaluation purposes. Suppliers are encouraged to provide pricing on as many items as possible. Full Market Basket pricing will be evaluated based on the below equation: Lowest Proposal Cost X Price Points Possible = Pricing ScoreProposal Cost being evaluated b. If less than three (3) Responses to a Solicitation are deemed responsive by the City, at the City’s sole discretion, the Responses may be evaluated using simple comparative analysis instead of any announced method of evaluation, subject to meeting administrative and responsibility requirements. c. Each Response will be evaluated based upon responsiveness and responsibility criteria. A failure to meet responsiveness or responsibility criteria will render a Respondent ineligible for award of a contract under the Solicitation. 1. Responsiveness. The City will determine whether the Response complies with the instructions for submitting a Response set forth in the Solicitation (i.e. the completeness of the Response which encompasses the inclusion of all required attachments and submissions). Responsiveness will also be examined as it pertains to items set forth in this Solicitation that state a Respondent may be deemed non-responsive based upon the content of their Response. The City will reject any Responses that are submitted late. Failure to meet any requirements in the Solicitation may result in rejection of a Response as non-responsive. 2. Responsibility. The City will determine whether a Respondent is one with whom the City should do business. Factors the City may evaluate to determine responsibility include, but are not limited to: an excessively high or low priced Response; past performance under any agreement with the City; references from any source including, but not limited to, those found outside the references listed in the Response and City employees, agents or officials who have experience with the Respondent; compliance with applicable laws; Respondent’s record of performance and integrity (e.g. has the Respondent been delinquent or unfaithful to any contract with the City, whether the Respondent is qualified legally to contract with the City, financial stability and the perceived ability to perform completely as specified). A Respondent must at all times have financial resources sufficient, in the opinion of the City, to ensure performance of the contract and must provide proof upon request. City staff may also use Dun & Bradstreet or any generally available industry information to evaluate the Respondent. The City reserves the right to inspect and review Respondent’s facilities, equipment and personnel and those of any identified subcontractors. The City will determine whether any failure to supply information, or the quality of the information, will result in Respondent being deemed non-responsible. d. As a part of the Response, Respondents are requested to provide references. The City reserves the right to: (1) Not contact any or all of a Respondent’s references as the City may evaluate reference information provided in a Response; (2) Contact references not included in a Respondent’s Response; and (3) Utilize as a reference City staff members who have experience with a Respondent. As references may not be contacted, Respondents are encouraged to provide as much detail as possible in Attachment C (Respondent Questionnaire). 30. COST JUSTIFICATION: In the event only one Response to the Solicitation is received, the City may require the Respondent submit a cost offer in sufficient detail for the City to perform a cost/price analysis to determine if the Response price is fair and reasonable. 31. CONTRACT NEGOTIATIONS AND ACCEPTANCE: Respondent must be prepared for the City to accept the Response as submitted. If Respondent fails to sign all documents necessary to successfully execute the final contract within a reasonable time as specified, or negotiations do not INSTRUCTIONS 2018011 Page 13 of 41 result in an acceptable agreement, the City may reject the Response or revoke the award, and may begin negotiations with another Respondent. Final contract terms must be approved or signed by the appropriately authorized City official(s). No binding contract will exist between the Respondent and the City until the City executes a written contract or purchase order. 32. NOTICE OF INTENT TO AWARD: Notices of the City’s intent to award a contract are posted to the Purchasing Division’s website before 6:00 PM local time on Wednesdays. If Wednesday is a holiday observed by the City, notice will be posted on Tuesday. It is the Respondent’s responsibility to check the City of Mesa Purchasing website at http://mesaaz.gov/business/purchasing to view Purchasing’s Intent to Award notices. This is the only notification you will receive regarding the City’s Intent to Award a contract related to this Solicitation. 33. PROTESTS AND APPEALS: If a Respondent or any person believes there is a mistake, impropriety, or defect in the Solicitation, believes the City improperly rejected its Response, or believes the selected Response should not receive the City contract based upon a fact supported issue with the Solicitation or selected Respondent or otherwise protests the award to the Respondent, the Respondent may submit a written protest. All protests and appeals are governed by the City Procurement Rules (“Procurement Rules”). The rules surrounding protests and appeals may be found in Section 6 of the Procurement Rules which are located on the Purchasing Division website at http://mesaaz.gov/business/purchasing. Please see the Procurement Rules for more information on the submission of a protest and corresponding appeal rights; if there exist any discrepancy in this Section and the Procurement Rules, the language of the Procurement Rules will control. ADDRESS PROTESTS TO: ADDRESS APPEALS TO: Matt Bauer Edward Quedens Procurement Administrator Chief Procurement Officer 20 East Main Street, Suite 400 20 East Main Street, Suite 450 PO Box 1466 PO Box 1466 Mesa, Arizona 85211-1466 Mesa, Arizona 85211-1466 Fax: (480) 644-2655 Fax: (480) 644-2687 Email: Matt.Bauer@MesaAZ.gov Email: Ed.Quedens@MesaAZ.gov 34. POLICY DOCUMENTS: The City of Mesa Charter, Code, Procurement Rules and Management Policy 200 govern this procurement and are incorporated as a part of this Solicitation by this reference. A copy of these documents may be found on Mesa Purchasing Division’s website at www.mesaaz.gov/business/purchasing. SCOPE OF WORK 2018011 Page 14 of 41 This Scope of Work and the Technical Requirements will be compiled into any resulting contract as Exhibit A. 1. INTENT. The City of Mesa (the “City”) is requesting proposals from firms qualified to provide Information Technology Solutions and Services to be delivered to various locations throughout the City. Requirements and qualifications are defined in detail in the following Scope of Work and Technical Requirements Sections of this Request for Proposal (RFP). 2. NATIONAL CONTRACT REQUIREMENTS. The City, as the Principal Procurement Agency, as defined in Attachment D, has partnered with the National Intergovernmental Purchasing Alliance Company (“National IPA”) to make the resultant contract (also known as the “Master Agreement” in products distributed by National IPA) from this solicitation available to other public agencies nationally, including state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit (“Public Agencies”), through National IPA’s cooperative purchasing program. The City of Mesa is acting as the contracting agency for any other Public Agency that elects to utilize the resulting Master Agreement. Use of the Master Agreement by any Public Agency is preceded by their registration with National IPA as a Participating Public Agency in National IPA’s cooperative purchasing program. Attachment D contains additional information on National IPA and the cooperative purchasing agreement. National IPA is a channel partner with, Vizient (formally, Novation). Together we leverage over $100 billion in annual supply spend to command the best prices on products and services. With corporate, pricing and sales commitments from the Supplier, National IPA provides marketing and administrative support for the Supplier that directly promotes the Supplier’s products and services to Participating Public Agencies though multiple channels, each designed to promote specific products and services to Public Agencies on a national basis. Public Agencies benefit from pricing based on aggregate spend and the convenience of a contract that has already been advertised and competed. The Supplier benefits from a contract that allows Participating Public Agencies to directly purchase goods and services without the Supplier’s need to respond to additional competitive solicitations. As such, the Supplier must be able to accommodate a nationwide demand for services and to fulfill obligations as a nationwide Supplier and respond to the National IPA documents Attachment D. The City anticipates spending approximately $10 million over the full potential Master Agreement term for IT Solutions. While no minimum volume is guaranteed to the Supplier, the estimated annual volume of IT Solutions purchased under the Master Agreement through National IPA is approximately $500 million. This projection is based on the current annual volumes among the City, other Participating Public Agencies that are anticipated to utilize the resulting Master Agreement to be made available to them through National IPA, and volume growth into other Public Agencies through a coordinated marketing approach between the Supplier and National IPA. 3. MINIMUM REQUIREMENTS. Offerors should be able to meet the following minimum qualifications: a) A full range of information technology solution products and services to meet varying requirements of governmental agencies. b) Have a strong national presence as a computer solutions provider. c) Have a distribution model capable of delivering products, free of charge, in a timely manner on a nationwide basis. d) Have a demonstrated sales presence. e) Ability to provide a toll-free telephone and state of the art electronic facsimile and internet ordering and billing capabilities. f) Be able to meet the minimum requirements of the cooperative purchasing program detailed herein. Deleted: materials SCOPE OF WORK 2018011 Page 15 of 41 4. ORDERING. Although the City is open to alternate ordering methods, the primary methods for customers placing orders with the Supplier is through the following: a) Online b) Telephone b) Fax c) Email 5. DELIVERY REQUIREMENT. Supplier agrees to deliver all products to the desktop of the ordering customer be delivered F.O.B. destination, freight pre-paid and added, and allowed to various locations throughout the City. The City of Mesa shall be responsible for extra incurred fees for expedited shipping or other special delivery requirements. In many cases within the City, the Supplier may be asked to deliver all goods to the front counter within a given department. This is the City of Mesa requirement and other participating agencies may have other delivery requirements. 6. SCOPE OF PRODUCTS. The intent of this solicitation is to establish a contract with the ability to purchase a comprehensive, wide variety of Information Technology Solution Products including but not limited to the following categories: a) Personal Computer Systems: National brand name desktop PCs, notebooks and laptops from Enterprise Tier and Middle Tier Suppliers that are business related computers, manufactured by companies, such as, Apple, COMPAQ, Dell, Gateway, Hewlett Packard, IBM / Lenovo and Toshiba. b) Standard Business Workstation: These will be used for typical tasks, which will include word processing, spreadsheet analysis, database management, business graphics, statistical analysis, internet, and other office automation activities. Product will include the operating system license, software media and documentation in the hardware shipment. c) High End Workstation: These will be used by application developers using GIS, CASE or other high-level language development tools, Computer Aided Design and Drafting professional, Internet Application developers or other sophisticated application work. Product will include the operating system license, software media and documentation in the hardware shipment. d) Laptop Computer or Notebook: These will be used by traveling or remote access user for typical office automation and business productivity use. With a port replicator or docking station, it may also be used as a standard desktop. Product will include the operating system license, software media and documentation in the hardware shipment. e) Network Equipment: This includes equipment primarily used for communications over an IP network. This includes layer 2 and layer 3 switches, routers, area wireless access points, point- to-point wireless access, optics, media interfaces (i.e. serial, T1, T3, OC3) and fiber channel. Class of equipment should include home office, small and medium business, and enterprise. Suppliers may include, but not limited to, Cisco Systems, Dell, Juniper Networks, HP, Extreme Networks, Enterasys Networks, D-Link, Netgear, and Brocade Communications Systems. f) Monitors: These will include plug and play compatible monitors that are manufactured for the above systems and/or any other brand that may be specifically called for by the ordering entity and which meet the most current UL and OSHA requirements. g) Computer and Network Products and Peripherals: Complete availability of major manufacturers product lines on items such as, but not limited to RAM, graphic accelerator cards, network interface cards, cables, printers, scanners, keyboards, drives, memory cards, cables, batteries, etc. SCOPE OF WORK 2018011 Page 16 of 41 h) Services: Services such as cloud computing, consulting, technical support, leasing/financing, trade-ins, repair, design, analysis, configuration, implementation, installation, training, and maintenance, etc. In addition, services which are related to the design, use or operation of the products being purchased such as system configurations, testing, hardware/software installation, upgrades, imaging, etc. Note: All hardware should come assembled. For example, if extra memory, additional drives or peripherals are ordered, the Supplier must install them unless the Participating Agency request they not be installed. Supplier shall provide these assembly and installation services as stated in applicable order and additional terms and fees may apply. i) Comprehensive Product Offering: Offeror’s complete catalog and services offered shall be available. Each offeror awarded a contract under this solicitation may offer their complete product and service offering. Pricing for products and services must be entered on the appropriate section of the Price Page. The City reserves the right to accept or reject any or all items offered. j) Financing: Options available such as lease programs and conditional sales contracts. 7. LICENSES. Participating Agencies may be required to sign a separate agreement, rider or End User Licensing Agreement (“EULA”) as required by manufacturers. 8. AWARD. It is the City’s intention that a single or limited number of awards will be made under this solicitation however at the City’s sole discretion, the City may consider multiple awards (See “Reservations”). 9. DEFECTIVE PRODUCT. All defective products shall be replaced and exchanged by the Supplier as permitted under the manufacturers return policy and Supplier’s Return Policy found at www.shi.com/returnpolicy. In any event, the OEM's policies (which may include processing as a warranty claim) will apply. Supplier will order a replacement unit within one (1) business day of notice of damage, defect or DOA from the City. 10. TERM. This solicitation is for awarding a purchasing contract to cover an initial five (5) year term. An estimated initial term of January 1st, 2018 through December 31st, 2022, not including any extensions or renewals subject to the terms of the Agreement. If the commencement of performance is delayed because the City does not execute the Agreement at this start date, the City may adjust the start date, end date and any milestones to reflect the delayed execution. The parties agree any job orders, project agreements or maintenance agreements executed against Contract during the effective term may survive beyond the expiration of said Contract as established and agreed to in writing, by both parties. 11. RENEWALS. On the mutual written agreement of the Parties, the Term may be renewed up to a maximum of two (2) one (1) year periods. Any renewal(s) will be a continuation of the same terms and conditions as in effect immediately prior to the expiration of the then-current term. 12. EXTENSIONS. Upon the expiration of the Term of the Agreement, including any renewals permitted herein, at the City’s sole discretion the Agreement may be extended for a maximum of six (6) months to allow for the City’s procurement processes in the selection of a Supplier to provide the services/products under this Agreement. The City intends to notify the Supplier in writing of its desire to extend the Agreement at least thirty (30) calendar days prior to the expiration of the Term. Any extension will be a continuation of the same terms and conditions as in effect immediately prior to the expiration of the then-current term. 13. PRICING. Suppliers shall provide a price in the format of a minimum percentage discount off a verifiable price index. Suppliers may submit discounts for various manufacturers. At the time of purchase, suppliers may offer deeper discounts beyond the discounted price list, based on volume or other factors, as Deleted: The cost of transportation, unpacking, inspection, re-packing, re-shipping or other like expenses shall be paid by the Supplier. All replacement products must be received by the City within seven (7) days of initial notification. Deleted: materials SCOPE OF WORK 2018011 Page 17 of 41 applicable. Minimum discounts will remain firm during the entirety of the initial term of the Contract, unless the Supplier requests to increase its discount percentage, and will include all charges that may be incurred in fulfilling requirement(s). Also, the “technology marketplace” is one of rapid change, with new products and revisions coming into the marketplace on a regular basis, it is required that a verifiable pricing formula or guaranteed discount matrix be included with response. In addition to decreasing prices for the balance of the Contract term due to a change in market conditions, a Supplier may conduct sales promotions involving price reductions for a specified lesser period. In the event a product is discontinued, Supplier will provide a product of the same or greater functionality, utilizing the proposed discount structure. Price discounts will be evaluated by applying the Supplier’s discount to the prices listed on the verifiable price index. It is the Supplier’s responsibility to provide the City with an up-to-date price list for the duration of the contract. a) Prices. All pricing discounts shall be firm for the Term and all extensions or renewals of the Term except where otherwise provided in this Agreement, and include all costs of the Supplier providing the products/service including transportation and delivery insurance. No fuel surcharges will be accepted unless allowed in this Agreement. The City shall not be invoiced at prices higher than those stated in the Agreement. The Supplier further agrees that any reductions in the price of the products or services covered by this Agreement will apply to the undelivered balance. The Supplier shall promptly notify the City of such price reductions. No price modifications will be accepted without proper request by the Supplier and response by the City’s Purchasing Division. b) Price Adjustment. Any requests for reasonable price adjustments must be submitted in accordance with this section. Requests for adjustment in cost of labor and/or services must be supported by appropriate documentation. There is no guarantee the City will accept a price adjustment therefore Supplier should be prepared for the Pricing to be firm over the Term of the Agreement. The City is only willing to entertain price adjustments based on an increase to Supplier’s actual expenses or other reasonable adjustment in providing the services/materials under the Agreement. If the City agrees to the adjusted price terms, the City shall issue written approval of the change. During the sixty (60) day period prior to Contract term expiration date of the Agreement, the Supplier may submit a written request to the City to allow an increase to the prices in an amount not to exceed the twelve month change in the Consumer Price Index for All Urban Consumers (CPI-U), US City Average, All Items, Not Seasonally Adjusted as published by the U.S. Department of Labor, Bureau of Labor Statistics (http://www.bls.gov/cpi/home.htm). The City shall review the request for adjustment and respond in writing; such response and approval shall not be unreasonably withheld. c) Renewal and Extension Pricing. Any extension of the Agreement will be at the same pricing as the initial Term. If the Agreement is renewed in accordance with Section 13, pricing may be adjusted for amounts other than inflation that represent actual costs to the Supplier based on the mutual agreement of the parties. The Supplier may submit a request for a price adjustment along with appropriate supporting documentation demonstrating the cost to the Supplier. Renewal prices shall be firm for the term of the renewal period and may be adjusted thereafter as outlined in the previous section. There is no guarantee the City will accept a price adjustment. Deleted: materials Deleted: , Deleted: and warranty costs Commented [PB1]: Warranty coverage is provided by the manufacturer (OEM) and not SHI. The manufacturers standard warranties apply unless the customer wishes to purchase extended warranty. Deleted: materials Deleted: materials SCOPE OF WORK 2018011 Page 18 of 41 14. TYPES AND AMOUNTS OF INSURANCE. Insurance requirements are detailed in the Agreement document. Supplier must obtain and retain throughout the term of the Agreement, at a minimum, the following: a. Worker’s compensation insurance in accordance with the provisions of Arizona law. If Supplier operates with no employees, Supplier must provide the City with written proof Supplier has no employees. If employees are hired during the course of this Agreement, Supplier must procure worker’s compensations in accordance with Arizona law. b. The Supplier shall maintain at all times during the term of this contract, a minimum amount of $1 million per occurrence/$2 million aggregate Commercial General Liability insurance, including Contractual Liability. For General Liability insurance, the City of Mesa, their agents, officials, volunteers, officers, elected officials or employees shall be named as additional insured, as evidenced by providing an additional insured endorsement. c. Automobile liability, bodily injury and property damage with a limit of $1 million per occurrence including owned, hired and non-owned autos. Prior to the execution of the Contract, the Supplier shall provide the City with a Certificate of Insurance (using appropriate ACORD certificate) SIGNED by the Issuer, applicable endorsements, and the City reserves the right to request additional copies of any or all of the above policies, endorsements, or notices relating thereto. When the City requires a Certificate of Insurance to be furnished, the Supplier's insurance shall be primary of all other sources available. When the City is a certificate holder, the Supplier agrees that no policy shall expire, be canceled or materially changed to affect the coverage available without advance written notice to the City. “Waiver of Subrogation". The policies required by this agreement (or contract) shall contain a waiver of transfer rights of recovery (subrogation) against City, its agents, representatives, directors, elected officials, officers, employees, and volunteers for any claims arising out of the work of Supplier where permitted by law.” All insurance certificates and applicable endorsements are subject to review and approval by the City's Risk Manager. ATTACHMENT A PRICING 2018011 Page 19 of 41 Offerors must utilize the below document when responding to this solicitation and return the document in an Excel format with their proposal. 2018011 Pricing.xlsx ATTACHMENT B REQUIRED RESPONSE FORMS 2018011 Page 20 of 41 Solicitation Required Response Forms.docx ATTACHMENT C RESPONDENT QUESTIONNAIRE 2018011 Page 21 of 41 Respondent Company Name/ DBA: Years in business providing similar services: Contractor’s License No(s): Type: (Submit a copy with the Response) Number of employees at location that would serve under a contract from the Solicitation: Provide names, contact and telephone numbers of three (3) organizations that have received similar services from your company. At least one reference should be comparable in size to the City’s proposed contract. Firm/Government Agency Name: Contact Person: Phone: Address: Fax: E-Mail Address: $ Value of Work, Supplies/Services and Dates Provided: Firm/Government Agency Name: Contact Person: Phone: Address: Fax: E-Mail Address: $ Value of Work, Supplies/Services and Dates Provided: Firm/Government Agency Name: Contact Person: Phone: Address: Fax: E-Mail Address: $ Value of Work, Supplies/Services and Dates Provided: List any other information which may be helpful in determining your qualifications for a potential contract: ATTACHMENT D NATIONAL IPA PRICIPAL PROCUREMENT AGENCY (“PPA”) 2018011 Page 22 of 41 Attachment D PPA.docx EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 23 of 41 AGREEMENT PURSUANT TO SOLICITATION CITY OF MESA AGREEMENT NUMBER 2018011 INFORMATION TECHNOLOGY SOLUTIONS & SERVICES CITY OF MESA, Arizona (“City”) Department Name City of Mesa – Purchasing Division Mailing Address P.O. Box 1466 Mesa, AZ 85211-1466 Delivery Address 20 East Main St, Suite 400 Mesa, AZ 85201 Attention Sharon Brause, CPPO, CPPB, CPCP Senior Procurement Officer E-Mail Sharon.Brause@MesaAZ.gov Phone (480) 644-2815 Fax (480) 644-2655 AND COMPANY NAME, (“Contractor”) Mailing Address Delivery Address Attention NameAndTitle E-Mail Phone Fax EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 24 of 41 CITY OF MESA AGREEMENT PURSUANT TO SOLICITATION This Agreement pursuant to solicitation (“Agreement”) is entered into this ___ day of ______________, 2017, by and between the City of Mesa, Arizona, an Arizona municipal corporation (“City”), and SHI International Corp, a(n) New Jersey corporation/ (“Contractor”). The City and Contractor are each a “Party” to the Agreement or together are “Parties” to the Agreement. RECITALS A. The City issued solicitation number 2018011 (“Solicitation”) for INFORMATION TECHNOLOGY SOLUTIONS & SERVICES, to which Contractor provided a response (“Response”); and B. The City Selected Contractor’s Response as being in the best interest of the City and wishes to engage Contractor in providing the Services/Products described in the Solicitation and Response. C. “Services” means the resale services provided by Contractor under this Agreement; i.e. sourcing and fulfilling the Product and/or providing deliverables identified in an Order. D. “Products” means collectively third party software, computer peripherals, computer hardware, and associated IT services provided by third parties or Contractor, as the case may be. E. “Order” means the form of purchase order or other document used for the purpose of ordering Product and/or deliverables pursuant to this Agreement. Order shall also include a phone order placed by the City employee to Contractor utilizing the City’s corporate procurement card or the City’s written or electronic form of purchase requisition. In consideration of the reciprocal promises contained in the Agreement, and for other valuable and good consideration, which the Parties acknowledge the receipt and sufficiency of, the Parties agree to the following Terms & Conditions. TERMS & CONDITIONS 1. Term. This Agreement is for a term beginning on January 1, 2018 and ending on December 31, 2022. The use of the word “Term” in the Agreement includes the aforementioned period as well as any applicable extensions or renewals in accordance with this Section 1. 1.1 Renewals. On the mutual written agreement of the Parties, the Term may be renewed up to a maximum of two (2) one (1) year periods. Any renewal(s) will be a continuation of the same terms and conditions as in effect immediately prior to the expiration of the then-current term. 1.2 Extension for Procurement Processes. Upon the expiration of the Term of this Agreement, including any renewals permitted herein, at the City’s sole discretion this Agreement may be extended on a month-to-month basis for a maximum of six (6) months to allow for the City’s procurement processes in the selection of a Contractor to provide the Services/Products provided under this Agreement. The City will notify the Contractor in writing of its intent to extend the Agreement at least thirty (30) calendar days prior to the expiration of the Term. Any extension under this Subsection 1.2 will be a continuation of the same terms and conditions as in effect immediately prior to the expiration of the then-current term. 1.3 Delivery. Delivery shall be made to the location(s) contained in the Scope of Work within thirty (30) days after receipt of an Order. Deleted: CompanyName Deleted: State Deleted: company/natural person Deleted: s Deleted: materials Deleted: s Deleted: materials Deleted: o EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 25 of 41 2. Scope of Work. The Contractor will provide the necessary staff, services and associated resources to provide the City with the ServicesProducts, and obligations attached to this Agreement as Exhibit A (“Scope of Work”) Contractor will be responsible for all costs and expenses incurred by Contractor that are incident to the performance of the Scope of Work unless otherwise stated in Exhibit A. Contractor will supply all equipment and instrumentalities necessary to perform the Scope of Work. If set forth in Exhibit A, the City will provide Contractor’s personnel with adequate workspace and such other related facilities as may be required by Contractor to carry out the Scope of Work. 3. Orders. Orders be placed with the Contractor by either a: (i) Purchase Order when for a one-time purchase; (ii) Notice to Proceed, or (iii) Delivery Order off of a Master Agreement for Requirement Contract where multiple as-needed orders will be placed with the Contractor. The City may use the Internet to communicate with Contractor and to place Orders as permitted under this Agreement 4. Document Order of Precedence. In the event of any inconsistency between the terms of the body of the Agreement, the Exhibits, the Solicitation, and Response, the language of the documents will control in the following order. a. Amendments to the Agreement or any mutually agreed upon written agreements made between Contractor and Participating Agencies with conflicting terms to this Agreement where such conflicting terms shall supersede the terms stated herein. b. Agreement c. Exhibits 1. Mesa Standard Terms & Conditions 2. National IPA Agreement 3. Scope of Work 4. Other Exhibits not listed above d. Solicitation including any addenda e. Contractor Response 5. Payment. 5.1 General. Subject to the provisions of the Agreement, the City will pay Contractor the sum(s) described in Exhibit B (“Pricing”) in consideration of Contractor’s performance of the Scope of Work during the Term. 6. Pricing. Contractors shall provide a price in the format of a minimum percentage discount off a verifiable price index. Contractor may submit discounts for various manufacturers. At the time of purchase, Contractor may offer deeper discounts beyond the discounted price list, based on volume or other factors, as applicable. Minimum discounts will remain firm during the entirety of the initial term of the Contract, unless the Contractor requests to increase its discount percentage, and will include all charges that may be incurred in fulfilling requirement(s). Also, the “technology marketplace” is one of rapid change, with new products and revisions coming into the marketplace on a regular basis, it is required that a verifiable pricing formula or guaranteed discount matrix be included with response. In addition to decreasing prices for the balance of the Contract term due to a change in market conditions, a Contractor may conduct sales promotions involving price reductions for a specified lesser period. In the event a product is discontinued, Contractor will provide a product of the same or greater functionality, utilizing the proposed discount structure. Price discounts will be evaluated by applying the Contractor’s discount to the list prices on the verifiable price index. It is the Contractor’s responsibility to provide the City with an up-to-date price list for the duration of the contract. Deleted: s Deleted: , materials Commented [PB2]: Please provide SHI with definition Deleted: o Deleted: Suppliers Commented [PB3]: “Contractor” is the defined term for SHI in this Agreement. Deleted: Suppliers Deleted: suppliers Deleted: Supplier Deleted: Supplier Deleted: Supplier Deleted: Supplier’s Deleted: listed Deleted: Supplier’s EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 26 of 41 6.1 Prices. All pricing discounts shall be firm for the Term and all extensions or renewals of the Term except where otherwise provided in this Agreement, and include all costs of the Contractor providing the Products/service including transportation, insurance and warranty costs. No fuel surcharges will be accepted unless allowed in this Agreement. The City shall not be invoiced at prices higher than those stated in the Agreement. The Contractor further agrees that any reductions in the price of the Products or services covered by this Agreement will apply to the undelivered balance. The Contractor shall promptly notify the City of such price reductions. No price modifications will be accepted without proper request by the Contractor and response by the City’s Purchasing Division. 6.2 Price Adjustment. Any requests for reasonable price adjustments must be submitted in accordance with this section. Requests for adjustment in cost of labor and/or Products must be supported by appropriate documentation. There is no guarantee the City will accept a price adjustment therefore Contractor should be prepared for the Pricing to be firm over the Term of the Agreement. The City is only willing to entertain price adjustments based on an increase to Supplier’s actual expenses or other reasonable adjustment in providing the services/Products under the Agreement. If the City agrees to the adjusted price terms, the City shall issue written approval of the change. During the sixty (60) day period prior to Contract term expiration date of the Agreement, the Contractor may submit a written request to the City to allow an increase to the prices in an amount not to exceed the twelve month change in the Consumer Price Index for All Urban Consumers (CPI-U), US City Average, All Items, Not Seasonally Adjusted as published by the U.S. Department of Labor, Bureau of Labor Statistics (http://www.bls.gov/cpi/home.htm). The City shall review the request for adjustment and respond in writing; such response and approval shall not be unreasonably withheld. 6.3 Renewal and Extension Pricing. Any extension of the Agreement will be at the same pricing as the initial Term. If the Agreement is renewed in accordance with Section 1, pricing may be adjusted for amounts other than inflation that represent actual costs to the Contractor based on the mutual agreement of the parties. The Contractor may submit a request for a price adjustment along with appropriate supporting documentation demonstrating the cost to the Contractor. Renewal prices shall be firm for the term of the renewal period and may be adjusted thereafter as outlined in the previous section. There is no guarantee the City will accept a price adjustment. 6.4 Invoices. Payment will be made to Contractor following the City’s receipt of a properly completed invoice. Any issues regarding billing or invoicing must be directed to the City Department/Division requesting the service or material from the Contractor. A properly completed invoice should contain, at a minimum, all of the following: a. Contractor name, address, and contact information; b. City billing information; c. City contract number as listed on the first page of the Agreement; d. Invoice number and date; e. Payment terms; f. Date of service or delivery; g. Description of Products or services provided; h. If Products provided, the quantity delivered and pricing of each unit; i. Applicable Taxes j. Total amount due. Deleted: Supplier Deleted: materials Deleted: Supplier Deleted: materials Deleted: Supplier Deleted: Supplier Deleted: materials Deleted: Supplier Deleted: materials Deleted: Supplier Deleted: Supplier Deleted: Supplier Deleted: Supplier Deleted: materials Deleted: materials EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 27 of 41 6.5 Payment of Funds. Contractor acknowledges the City may, at its option and where available use a Procurement Card/e-Payables to make payment for orders under the Agreement. Otherwise; payment will be through a traditional method of a check or Electronic Funds Transfer (EFT) as available. 6.6 Disallowed Costs, Overpayment. If at any time the City determines that a cost for which payment was made to Contractor is a disallowed cost, such as an overpayment or a charge for products/service not in accordance with the Agreement, the City will notify Contractor in writing of the disallowance; such notice will state the means of correction which may be, but is not limited to, adjustment of any future claim/invoice submitted by Contractor in the amount of the disallowance, or to require repayment of the disallowed amount by Contractor. Contractor will be provided with the opportunity to respond to the notice. 7. Insurance. 7.1 Contractor must obtain and maintain at its expense throughout the term of Contractor’s agreement, at a minimum, the types and amounts of insurance set forth in this Section 6 from insurance companies authorized to do business in the State of Arizona; the insurance must cover the service to be provided by Contractor under the Agreement. For any insurance required under the Agreement, Contractor will name the City of Mesa, its agents, representatives, officials, volunteers, officers, elected officials, and employees as additional insured, as evidenced by providing either an additional insured endorsement or proper insurance policy excerpts. 7.2 Nothing in this Section 6 limits Contractor’s responsibility to the City. The insurance requirements herein are minimum requirements for the Agreement and in no way limit any indemnity promise(s) contained in the Agreement. 7.3 The City does not warrant the minimum limits contained herein are sufficient to protect Contractor and subcontractor(s) from liabilities that might arise out of performance under the Agreement by Contractor, its agents, representatives, employees, or subcontractor(s). Contractor is encouraged to purchase additional insurance as Contractor determines may be necessary. 7.4 Each insurance policy required under the Agreement must be in effect at or prior to the execution of the Agreement and remain in effect for the term of the Agreement. 7.5 Prior to the execution of the Agreement, Contractor will provide the City with a Certificate of Insurance (using an appropriate “ACORD” or equivalent certificate) signed by the issuer with applicable endorsements. The City reserves the right to request additional copies of any or all of the policies, endorsements, or notices relating thereto required under the Agreement. 7.6 When the City requires a Certificate of Insurance to be furnished, Contractor's insurance is primary of all other sources available. When the City is a certificate holder and/or an additional insured, Contractor agrees no policy will expire, be canceled, or be materially changed to affect the coverage available without advance written notice to the City. 7.7 The policies required by the Agreement must contain a waiver of transfer rights of recovery (waiver of subrogation) against the City, its agents, representatives, officials, volunteers, officers, elected officials, and employees for any claims arising out of the work of Contractor, where permitted by law. 7.8 All insurance certificates and applicable endorsements are subject to review and approval by the City's Risk Management Division. Deleted: materials Deleted: materials/ EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 28 of 41 7.9 Types and Amounts of Insurance. Contractor must obtain and retain throughout the term of the Agreement, at a minimum, the following: 7.9.1 Worker’s compensation insurance in accordance with the provisions of Arizona law. If Contractor operates with no employees, Contractor must provide the City with written proof Contractor has no employees. If employees are hired during the course of this Agreement, Contractor must procure worker’s compensations in accordance with Arizona law. 7.9.2 The Contractor shall maintain at all times during the term of this contract, a minimum amount of $1 million per occurrence/$2 million aggregate Commercial General Liability insurance, including Contractual Liability. For General Liability insurance, the City of Mesa, their agents, officials, volunteers, officers, elected officials or employees shall be named as additional insured, as evidenced by providing an additional insured endorsement. 7.9.3 Automobile liability, bodily injury and property damage with a limit of $1 million per occurrence including owned, hired and non-owned autos. 8. Requirements Contract. Contractor acknowledges and agrees the Agreement is a requirements contract; the Agreement does not guarantee any purchases will be made (minimum or maximum). Orders will only be placed when the City identifies a need and issues a purchase order or a written notice to proceed. The City reserves the right to cancel purchase orders prior to shipment of the products or provide a notice to proceed within a reasonable period of time of issuance; any such cancellation will be in writing. Should a purchase order or notice to proceed be canceled, the City agrees to reimburse Contractor for any actual and documented costs incurred by Contractor. If the City cancels a purchase order following shipment of the products but prior to delivery, the City shall pay all freight and handling charges for shipment and return shipment of such products to Contractor. All returns shall be made in accordance with Contractor’s Return Policy The City will not reimburse Contractor for any avoidable costs incurred after receipt of cancellation including, but not limited to, lost profits, shipment of product, or performance of services. The City reserves the right to purchase contracted items through other sources if determined in the best interests of the City to do so. 9. Notices. All notices to be given pursuant to the Agreement will be delivered to the Contractor as listed on Page 1 of this Agreement. Notice will be delivered pursuant to the requirements set forth the Mesa Standard Terms and Conditions that is attached to the Agreement as Exhibit C. 10. WARRANTY. Contractor warrants that the services will conform to the requirements of the Agreement. Additionally, Contractor warrants that all services will be performed in a good, workman-like and professional manner. The City’s acceptance of service provided by Contractor will not relieve Contractor from its obligations under this warranty. If any services are of a substandard or unsatisfactory manner as determined by the City, Contractor, at no additional charge to the City, will provide such services until in accordance with this Agreement and to the City’s reasonable satisfaction. 11. PRODUCT WARRANTY. Contractor is a value added reseller (“VAR”) of products, not the OEM or licensor, and therefore disclaims any warranty responsibility regarding product provided under this Agreement. Contractor shall forward the warranties to the City which are provided to Contractor from the OEM of the product, and to the extent granted by the OEM, the City shall be the beneficiary of the OEM’s warranties with respect to the Product. Contractor is not a party to any such terms between the City and OEM and the City agrees to look solely to the OEM for satisfaction of any and all warranty claims related to that OEM’s Product. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT AND/OR ANY ORDER ISSUED HEREUNDER, CONTRACTOR HEREBY DISCLAIMS ALL OTHER WARRANTIES, EITHER EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 29 of 41 EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WARRANTY OF NONINFRINGEMENT, OR ANY WARRANTY RELATING TO THIRD PARTY SERVICES OR PRODUCTS. THE DISCLAIMER CONTAINED IN THIS PARAGRAPH DOES NOT AFFECT THE TERMS OF ANY WARRANTY PROVIDED BY AN OEM. 12. Representations of Contractor. To the best of Contractor’s knowledge, Contractor agrees that: a. Contractor has no obligations, legal or otherwise, inconsistent with the terms of the Agreement or with Contractor’s undertaking of the relationship with the City; b. Performance of the services called for by the Agreement do not and will not violate any applicable law, rule, regulation, or any proprietary or other right of any third party; c. Contractor will not use in the performance of Contractor’s responsibilities under the Agreement any proprietary information or trade secret of a former employer of its employees (other than City, if applicable); and d. Contractor has not entered into and will not enter into any agreement, whether oral or written, in conflict with the Agreement. 13. Mesa Standard Terms and Conditions. Exhibit C to the Agreement is the Mesa Standard Terms and Conditions as modified by the Parties, which are incorporated by reference into the Agreement as though fully set forth herein. In the event of any inconsistency between the terms of the Agreement and the Mesa Standard Terms and Conditions, the language of the Agreement will control. The Parties or a Party are referred to as a “party” or “parties” in the Mesa Standard Terms and Conditions. The Term is referred to as the “term” in the Mesa Standard Terms and Conditions. 14. Counterparts and Facsimile or Electronic Signatures. This Agreement may be executed in two (2) or more counterparts, each of which will be deemed an original and all of which, taken together, will constitute one agreement. A facsimile or other electronically delivered signature to the Agreement will be deemed an original and binding upon the Party against whom enforcement is sought. 15. Incorporation of Recitals and Exhibits. All Recitals and Exhibits to the Agreement are hereby incorporated by reference into the Agreement as if written out and included herein. In the event of any inconsistency between the terms of the body of the Agreement and the Exhibits, the language of the Agreement will control. Exhibits to this Agreement are the following:  (A) Scope of Work / Technical Specifications  (B) Pricing  (C) Mesa Standard Terms and Conditions  (D) National IPA Agreement 16. Attorneys’ Fees. The prevailing Party in any litigation arising out of the Agreement will be entitled to the recovery of its reasonable attorney’s fees, court costs, and other litigation related costs and fees from the other Party. 17. Limitation of Liability NEITHER PARTY WILL BE LIABLE FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, LOSS OF OR DAMAGE TO DATA, LOSS OF ANTICIPATED REVENUE OR PROFITS, WORK STOPPAGE OR EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 30 of 41 IMPAIRMENT OF OTHER ASSETS, WHETHER OR NOT FORESEEABLE AND WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT IN THE CASE OF BREACH OF EACH PARTY’S LIABILITY FOR PERSONAL INJURY/PROPERTY DAMAGE UNDER ARTICLE ENTITLED, “INDEMNIFICATION”, EITHER PARTY’S TOTAL CUMULATIVE LIABILITY TO THE OTHER IN CONNECTION WITH THIS AGREEMENT, WHETHER IN CONTRACT, TORT OR OTHER THEORY, WILL NOT EXCEED THE TOTAL AMOUNT OF FEES ACTUALLY PAID OR PAYABLE BY THE CITY TO CONTRACTOR UNDER THIS AGREEMENT FOR THE YEAR PREVIOUS TO THE INCIDENT WHICH GAVE CAUSE FOR SUCH LIABILITY. CUSTOMER ACKNOWLEDGES THAT SUCH AMOUNT REFLECTS THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT AND THAT CONTRACTOR WOULD NOT ENTER INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS ON ITS LIABILITY. 18. Force Majeure Failure by either party to perform its duties and obligations will be excused by unforeseeable circumstances beyond its reasonable control, including acts of nature, acts of the public enemy, riots, fire, explosion, legislation, and governmental regulation. The party whose performance is so affected will within five (5) calendar days of the unforeseeable circumstance notify the other party of all pertinent facts and identify the force majeure event. The party whose performance is so affected must also take all reasonable steps, promptly and diligently, to prevent such causes if it is feasible to do so, or to minimize or eliminate the effect thereof. The delivery or performance date will be extended for a period equal to the time lost by reason of delay, plus such additional time as may be reasonably necessary to overcome the effect of the delay, provided however, under no circumstances will delays caused by a force majeure extend beyond one hundred-twenty (120) calendar days from the scheduled delivery or completion date of a task unless agreed upon by the parties 19. Title, Risk of Loss, Returns A. Contractor shall transfer to the City good and merchantable title to the Product, free from all liens, encumbrances and claims of others, upon delivery of the Product to and its receipt by the City, at which time title and risk of loss shall vest fully in the City, unless notice of rejection is provided to Contractor’s authorized representative within 24 hours after such delivery. B. All returns of Product shall be made in accordance to Contractor’s Return Policy found at www.shi.com/returnpolicy 20. Additional Acts. The Parties agree to execute promptly such other documents and to perform such other acts as may be reasonably necessary to carry out the purpose and intent of the Agreement. 21. Headings. The headings of the Agreement are for reference only and will not limit or define the meaning of any provision of the Agreement. By executing below, each Party acknowledges that it understands, approves, and accepts all of the terms of the Agreement and the attached exhibits. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF MESA, ARIZONA By: Printed Name Moved (insertion) [1] Deleted: FORCE MAJEURE. EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 31 of 41 Title Date REVIEWED BY: By: CONTRACTOR NAME By: Printed Name Title Date EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 32 of 41 EXHIBIT A SCOPE OF WORK The Scope of Work / Technical Specifications, National IPA Agreement and Contractor Response will be added here when Agreement is finalized. EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 33 of 41 EXHIBIT B PRICING Attachment A Pricing will be added here when Agreement is finalized. EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 34 of 41 EXHIBIT C MESA STANDARD TERMS AND CONDITIONS 1. INDEPENDENT CONTRACTOR. It is expressly understood that the relationship of Contractor to the City will be that of an independent contractor. Contractor and all persons employed by Contractor, either directly or indirectly, are Contractor’s employees, not City employees. Accordingly, Contractor and Contractor’s employees are not entitled to any benefits provided to City employees including, but not limited to, health benefits, enrollment in a retirement system, paid time off or other rights afforded City employees. Contractor employees will not be regarded as City employees or agents for any purpose, including the payment of unemployment or workers’ compensation. If any Contractor employees or subcontractors assert a claim for wages or other employment benefits against the City, Contractor will defend, indemnify and hold harmless the City from all such claims. 2. SUBCONTRACTING. Contractor may not subcontract work under this Agreement without the express written permission of the City. If Contractor has received authorization to subcontract work, it is agreed that all subcontractors performing work under the Agreement must comply with its provisions. Further, all agreements between Contractor and its subcontractors must provide that the terms and conditions of this Agreement be incorporated therein. 3. ASSIGNMENT. This Agreement may not be assigned either in whole or in part without first receiving the other Party’s written consent. Any attempted assignment, either in whole or in part, without such consent will be null and void and in such event the other Party will have the right at its option to terminate the Agreement. No granting of consent to any assignment will relieve either Party from any of its obligations and liabilities under the Agreement. Notwithstanding the foregoing, either Party may assign this Agreement and its rights, interests, liabilities and obligations thereunder to a successor pursuant to a merger, consolidation or sale of all or substantially all its assets. 4. SUCCESSORS AND ASSIGNS, BINDING EFFECT. This Agreement will be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns. 5. NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for the exclusive benefit of the parties. Nothing set forth in this Agreement is intended to create, or will create, any benefits, rights, or responsibilities in any third parties. 6. NON- EXCLUSIVITY. The City, in its sole discretion, reserves the right to request the Products or Services set forth herein from other sources when deemed necessary and appropriate. No exclusive rights are encompassed through this Agreement. 7. AMENDMENTS. There will be no oral changes to this Agreement. This Agreement can only be modified in a writing signed by both parties. No charge for extra work or material will be allowed unless approved in writing, in advance, by the City and Contractor. 8. TIME OF THE ESSENCE. Time is of the essence to the performance of the parties’ obligations under this Agreement. 9. COMPLIANCE WITH APPLICABLE LAWS. a. General. Contractor must procure all permits and licenses, and pay all charges and fees necessary and incidental to the lawful conduct of business. Contractor must stay fully informed of existing and future federal, state, and local laws, ordinances, and regulations that in any manner affect the fulfillment of this Agreement and must comply with the same at its own expense. Contractor bears full responsibility for training, safety, and providing necessary equipment for all Contractor personnel to achieve throughout the term of the Agreement. Upon request, Contractor will demonstrate to the City's satisfaction any programs, procedures, and other activities used to ensure compliance. b. Drug-Free Workplace. Contractor is hereby advised that the City has adopted a policy establishing a drug-free workplace for itself and those doing business with the City to ensure the safety and health of all persons working on City contracts and projects. Contractor will Deleted: City’s Deleted: City Deleted: Contractor Deleted: materials Deleted: s EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 35 of 41 require a drug-free workplace for all Contractor personnel working under this Agreement. Specifically, all Contractor personnel who are working under this Agreement must be notified in writing by Contractor that they are prohibited from the manufacture, distribution, dispensation, possession, or unlawful use of a controlled substance in the workplace. Contractor agrees to prohibit the use of intoxicating substances by all Contractor personnel, and will ensure that Contractor personnel do not use or possess illegal drugs while in the course of performing their duties. c. Federal and State Immigration Laws. Contractor agrees to comply with the Immigration Reform and Control Act of 1986 (IRCA) in performance under this Agreement and to permit the City and its agents to inspect applicable personnel records to verify such compliance as permitted by law. Contractor will ensure and keep appropriate records to demonstrate that all Contractor personnel have a legal right to live and work in the United States. i. As applicable to Contractor, under the provisions of A.R.S. § 41-4401, Contractor hereby warrants to the City that Contractor and each of its subcontractors will comply with, and are contractually obligated to comply with, all federal immigration laws and regulations that relate to their employees and A.R.S. § 23-214(A) (hereinafter “Contractor Immigration Warranty”). ii. A breach of the Contractor Immigration Warranty will constitute as a material breach of this Agreement and will subject Contractor to penalties up to and including termination of this Agreement at the sole discretion of the City. iii. v. Neither Contractor nor any subcontractor will be deemed to have materially breached the Contractor Immigration Warranty if Contractor or subcontractor establishes that it has complied with the employment verification provisions prescribed by Sections 274A and 274B of the Federal Immigration and Nationality Act and the E-Verify requirements prescribed by A.R.S. § 23-214 (A). d. Nondiscrimination. Contractor represents and warrants that it does not discriminate against any employee or applicant for employment or person to whom it provides services because of race, color, religion, sex, national origin, or disability, and represents and warrants that it complies with all applicable federal, state, and local laws and executive orders regarding employment. Contractor and Contractor’s personnel will comply with applicable provisions of Title VII of the U.S. Civil Rights Act of 1964, as amended, Section 504 of the Federal Rehabilitation Act, the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.), and applicable rules in performance under this Agreement. e. State Sponsors of Terrorism Prohibition. Per A.R.S. § 35-392, Contractor must not be in violation of section 6(j) of the Federal Export Administration Act and subsequently prohibited by the State of Arizona from selling goods of services to the City. 10. SALES/USE TAX, OTHER TAXES. a. Contractor is responsible for the payment of all taxes including federal, state, and local taxes related to or arising out of Contractor’s services under this Agreement, including by way of illustration but not limitation, federal and state income tax, Social Security tax, unemployment insurance taxes, and any other taxes or business license fees as required. If any taxing authority should deem Contractor or Contractor employees an employee of the City, or should otherwise claim the City is liable for the payment of taxes that are Contractor’s responsibility under this Agreement, Contractor will indemnify the City for any tax liability, interest, and penalties imposed upon the City. b. The City is exempt from paying certain federal excise taxes and will furnish an exemption certificate upon request. The City is not exempt from state and local sales/use taxes. Deleted: The City retains the legal right to inspect the papers of all Contractor personnel who provide services under this Agreement to ensure that Contractor or its subcontractors are complying with the Contractor Immigration Warranty. Contractor agrees to assist the City in regard to any such inspections.¶ iv.The City may, at its sole discretion, conduct random verification of the employment records of Contractor and any subcontractor to ensure compliance with the Contractor Immigration Warranty. Contractor agrees to assist the City in regard to any random verification performed. EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 36 of 41 11. AMOUNTS DUE THE CITY. Contractor must be current and remain current in all obligations due to the City during the performance of services under the Agreement. Payments to Contractor may be offset by any delinquent amounts due the City or fees and charges owed to the City. 12. PUBLIC RECORDS. Contractor acknowledges that the City is a public entity, subject to Arizona’s public records laws (A.R.S. § 39-121 et. seq.) and that any documents related to this Agreement may be subject to disclosure pursuant to state law in response to a public records request or to subpoena or other judicial process. 12.1. If Contractor believes document related to the Agreement contains trade secrets or other proprietary data, Contractor must notify the City and include with the notification a statement that explains and supports Contractor’s claim. Contractor also must specifically identify the trade secrets or other proprietary data that Contractor believes should remain confidential. 12.2. In the event the City determines it is legally required to disclose pursuant to law any documents or information Contractor deems confidential trade secrets or proprietary data, the City, to the extent possible, will provide Contractor with prompt written notice by certified mail, fax, email or other method that tracks delivery status of the requirement to disclose the information so Contractor may seek a protective order from a court having jurisdiction over the matter or obtain other appropriate remedies. The notice will include a time period for Contractor to seek court ordered protection or other legal remedies as deemed appropriate by Contractor. If Contractor does not obtain such court ordered protection by the expiration of said time period, the City may release the information without further notice to Contractor. 13. AUDITS AND RECORDS. Contractor must preserve the records related to this Agreement for six (6) years after completion of the Agreement. The City or its authorized agent reserves the right to inspect any financial records related to the performance of work specified herein once per calendar year. . Contractor will permit such inspections and audits during normal business hours and upon 30 days’ notice by the City. The audit of records may occur at Contractor’s place of business or at City offices, as determined by the City. 14. DEFAULT. a. A party will be in default if that party: i. Is or becomes insolvent or is a party to any voluntary bankruptcy or receivership proceeding, makes an assignment for a creditor, or there is any similar action that affects Contractor’s capability to perform under the Agreement; ii. Is the subject of a petition for involuntary bankruptcy not removed within sixty (60) calendar days; iii. Conducts business in an unethical manner as set forth in the City Procurement Rules Article 7 or in an illegal manner; or iv. Fails to carry out any term, promise, or condition of the Agreement. b. Contractor will be in default of this Agreement if Contractor is debarred from participating in City procurements and solicitations in accordance with Article 6 of the City’s Procurement Rules. c. Notice and Opportunity to Cure. In the event a party is in default then the other party may, at its option and at any time, provide written notice to the defaulting party of the default. The defaulting party will have thirty (30) days from receipt of the notice to cure the default; the thirty (30) day cure period may be extended by mutual agreement of the parties, but no cure period may exceed ninety (90) days. A default notice will be deemed to be sufficient if it is reasonably calculated to provide notice of the nature and extent of such default. Failure of the non- defaulting party to provide notice of the default does not waive any rights under the Agreement. d. Anticipatory Repudiation. Whenever the City in good faith has reason to question Contractor’s intent or ability to perform, the City may demand that Contractor give a written Deleted: In addition, the City may inspect any and all payroll, billing or other relevant records kept by Contractor in relation to the Agreement Deleted: reasonable Deleted: <#>BACKGROUND CHECK. The City may conduct criminal, driver history, and all other requested background checks of Contractor personnel who would perform services under the Agreement or who will have access to the City’s information, data, or facilities in accordance with the City’s current background check policies. Any officer, employee, or agent that fails the background check must be replaced immediately for any reasonable cause not prohibited by law. Deleted: <#>¶ SECURITY CLEARANCE AND REMOVAL OF CONTRACTOR PERSONNEL. The City will have final authority, based on security reasons: (i) to determine when security clearance of Contractor personnel is required; (ii) to determine the nature of the security clearance, up to and including fingerprinting Contractor personnel; and (iii) to determine whether or not any individual or entity may provide services under this Agreement. If the City objects to any Contractor personnel for any reasonable cause not prohibited by law, then Contractor will, upon notice from the City, remove any such individual from performance of services under this Agreement. Deleted: <#>¶ EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 37 of 41 assurance of its intent and ability to perform. In the event that the demand is made and no written assurance is given within five (5) calendar days, the City may treat this failure as an anticipatory repudiation of the Agreement. 15. REMEDIES. The remedies set forth in this Agreement are not exclusive. Election of one remedy will not preclude the use of other remedies. In the event of default: a. The non-defaulting party may terminate the Agreement, and the termination will be effective immediately or at such other date as specified by the terminating party. b. The City may purchase the services required under the Agreement from the open market, complete required work itself, or have it completed at the expense of Contractor. c. The non-defaulting party will have all other rights granted under this Agreement and all rights at law or in equity that may be available to it. d. Neither party will be liable for incidental, special, or consequential damages. 16. CONTINUATION DURING DISPUTES. Contractor agrees that during any dispute between the parties, Contractor will continue to perform its obligations until the dispute is settled, instructed to cease performance by the City, enjoined or prohibited by judicial action, or otherwise required or obligated to cease performance by other provisions in this Agreement. 17. TERMINATION FOR CONVENIENCE. The City reserves the right to terminate this Agreement in part or in whole upon thirty (30) calendar days’ written notice. 18. TERMINATION FOR CONFLICT OF INTEREST (A.R.S. § 38-511). Pursuant to A.R.S. § 38-511, the City may cancel this Agreement within three (3) years after its execution, without penalty or further obligation, if any person significantly involved in initiating, securing, drafting, or creating the Agreement for the City becomes an employee or agent of Contractor. 19. TERMINATION FOR NON-APPROPRIATION AND MODIFICATION FOR BUDGETARY CONSTRAINT. The City is a governmental agency which relies upon the appropriation of funds by its governing body to satisfy its obligations. If the City reasonably determines that it does not have funds to meet its obligations under this Agreement, the City will have the right to terminate the Agreement without penalty on the last day of the fiscal period for which funds were legally available. In the event of such termination, the City agrees to provide written notice of its intent to terminate thirty (30) calendar days prior to the stated termination date. 20. PAYMENT TO CONTRACTOR UPON TERMINATION. Upon termination of this Agreement, Contractor will be entitled only to payment for those services performed up to the date of termination, and any authorized expenses already incurred up to such date of termination. The City will make final payment within thirty (30) calendar days after the City has received Contractor’s properly prepared final invoice. 21. Termination of this Agreement shall not affect the obligations of the City or Contractor under any existing Order issued under this Agreement, and such Order shall continue in effect as though this Agreement had not been terminated, and was still in effect with respect to such Order 22. NON-WAIVER OF RIGHTS. There will be no waiver of any provision of this agreement unless approved in writing and signed by the waiving party. Failure or delay to exercise any rights or remedies provided herein or by law or in equity, or the acceptance of, or payment for, any services hereunder, will not release the other party of any of the warranties or other obligations of the Agreement and will not be deemed a waiver of any such rights or remedies. 23. INDEMNIFICATION/LIABILITY. a. To the fullest extent permitted by law, Contractor agrees to defend, indemnify, and hold the City, its officers, agents, and employees, harmless from and against any and all liabilities, demands, claims, suits, losses, damages, causes of action, fines or judgments, including costs, attorneys’, witnesses’, and expert witnesses’ fees, and expenses incident thereto, relating to, arising out of, or resulting from: (i) willful misconduct by Contractor personnel under this Deleted: If the cost of obtaining substitute services exceeds the contract price, the City may recover the excess cost by: (i) requiring immediate reimbursement to the City; (ii) deduction from an unpaid balance due to Contractor; (iii) collection against the proposal and/or performance security, if any; (iv) collection against liquidated damages (if applicable); or (v) a combination of the aforementioned remedies or other remedies as provided by law. Costs includes any and all, fees, and expenses incurred in obtaining substitute services and expended in obtaining reimbursement, including, but not limited to, administrative expenses, attorneys’ fees, and costs. Deleted: both completed its appraisal of the materials and services provided and Deleted: the services provided EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 38 of 41 Agreement; (ii) any grossly negligent acts, errors, mistakes or omissions by Contractor or Contractor personnel; and (iii) Contractor or Contractor personnel’s failure to comply with the law in fulfillment of the services under this Agreement. b. Contractor will update the City during the course of the litigation to timely notify the City of any issues that may involve the independent negligence of the City that is not covered by this indemnification. c. The City assumes no liability for actions of Contractor and will not indemnify or hold Contractor or any third party harmless for claims based on this Agreement or use of Contractor-provided supplies or services. f. THE CITY’S RIGHT TO RECOVER AGAINST THIRD PARTIES. Contractor will do nothing to prejudice the City’s right to recover against third parties for any loss, destruction, or damage to City property, and will at the City’s request and expense, furnish to the City reasonable assistance and cooperation, including assistance in the prosecution or defense of suit and the execution of instruments of assignment in favor of the City in obtaining recovery. g. NO GUARANTEE OF WORK. Contractor acknowledges and agrees that it is not entitled to deliver any specific amount of products or services or any products or services at all under this Agreement and acknowledges and agrees that the products or services will be requested by the City on an as needed basis at the sole discretion of the City. Any document referencing quantities or performance frequencies represent the City's best estimate of current requirements, but will not bind the City to purchase, accept, or pay for products or services which exceed its actual needs. h. OWNERSHIP. All deliverables, services, and information provided by Contractor or the City pursuant to this Agreement (whether electronically or manually generated) including without limitation, reports, test plans, and survey results, graphics, and technical tables, originally prepared in the performance of this Agreement, are the property of the City and will not be used or released by Contractor or any other person except with prior written permission by the City. Notwithstanding the foregoing, Contractor shall retain ownership rights to (1) all of its previously existing intellectual property, including any systems, derivatives, modifications and enhancements thereto, (2) Confidential Information of Contractor, and (3) any tools or scripting applications used, developed or created by Contractor or its third party licensors during the performance of this Agreement. i. USE OF NAME. Contractor will not use the name of the City of Mesa in any advertising or publicity without obtaining the prior written consent of the City. j. PROHIBITED ACTS. Pursuant to A.R.S. § 38-504, a current or former public officer or employee within the last twelve (12) months shall not represent another organization before the City on any matter for which the officer or employee was directly concerned and personally participated in during their service or employment or over which they had a substantial or material administrative discretion. Further, while employed by the City and for two (2) years thereafter, public officers or employees are prohibited from disclosing or using, without appropriate authorization, any confidential information acquired by such personnel in the course of his or her official duties at the City. k. FOB DESTINATION FREIGHT PREPAID AND ALLOWED. All deliveries will be FOB destination freight prepaid and allowed unless otherwise agreed. l. RISK OF LOSS. Contractor agrees to bear all risks of loss, injury, or destruction of Products or equipment incidental to providing these services and such loss, injury, or destruction of the Products prior to delivery of the Products to the City. Risk of loss shall vest fully in the City after such delivery. m. SAFEGUARDING CITY PROPERTY. Contractor will be responsible for any damage to City real property or damage or loss of City personal property when such property is the responsibility of or in the custody of Contractor or its employees. Deleted: Deleted: or fulfill the obligations established by this Agreement Deleted: <#>WARRANTY. Contractor warrants that the services and materials will conform to the requirements of the Agreement. Additionally, Contractor warrants that all services will be performed in a good, workman-like and professional manner. The City’s acceptance of service or materials provided by Contractor will not relieve Contractor from its obligations under this warranty. If any materials or services are of a substandard or unsatisfactory manner as determined by the City, Contractor, at no additional charge to the City, will provide materials or redo such services until in accordance with this Agreement and to the City’s reasonable satisfaction.¶ Unless otherwise agreed, Contractor warrants that materials will be new, unused, of most current manufacture and not discontinued, will be free of defects in materials and workmanship, will be provided in accordance with manufacturer's standard warranty for at least one (1) year unless otherwise specified, and will perform in accordance with manufacturer's published specifications Deleted: <#>.¶ Deleted: materials Deleted: materials Deleted: materials Deleted: materials Deleted: goods Deleted: will not release Contractor from any obligation hereunder. EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 39 of 41 n. PROPRIETARY RIGHTS INDEMNIFICATION. Without limiting the foregoing, Contractor will without limitation, at its expense defend the City against all claims asserted by any person that anything manufactured by Contractor infringes a patent, copyright, trade secret or other intellectual property right and must, without limitation, pay the costs, damages and attorneys' fees awarded against the City in any such action, or pay any settlement of such action or claim. Each party agrees to notify the other promptly of any matters to which this provision may apply and to cooperate with each other in connection with such defense or settlement. If a preliminary or final judgment is obtained against the City’s use or operation of the items provided by Contractor hereunder or any part thereof by reason of any alleged infringement, Contractor will, at its expense and without limitation, either: (a) modify the item so that it becomes non-infringing; (b) procure for the City the right to continue to use the item; (c) substitute for the infringing item other item(s) having at least equivalent capability; or (d) refund to the City an amount equal to the price paid, less reasonable usage, from the time of installation acceptance through cessation of use, which amount will be calculated on a useful life not less than five (5) years, plus any additional costs the City may incur to acquire substitute supplies or services. o. CONTRACT ADMINISTRATION. The contract will be administered by the Purchasing Administrator and/or an authorized representative from the using department. All questions regarding the contract will be referred to the administrator for resolution. Supplements may be written to the contract for the addition or deletion of services. Payment will be negotiated and determined by the contract administrator(s). p. . q. COOPERATIVE USE OF CONTRACT. This contract is available through National IPA to agencies nationwide. The City has also entered into various cooperative purchasing agreements with other Arizona government agencies, including the Strategic Alliance for Volume Expenditures (SAVE) cooperative. Under the SAVE Cooperative Purchasing Agreement, any contract may be extended for use by other municipalities, school districts and government agencies through National IPA or SAVE in the State of Arizona with the approval of Contractor. Any such usage by other entities must be in accordance with the statutes, codes, ordinances, charter and/or procurement rules and regulations of the respective government agency. . Orders placed by other agencies and payment thereof will be the sole responsibility of that agency. The City is not responsible for any disputes arising out of transactions made by others. r. FUEL CHARGES AND PRICE INCREASES. No fuel surcharges will be accepted. No price increases will be accepted without proper request by Contractor and response by the City’s Purchasing Division. s. NOTICES. All notices to be given pursuant to this Agreement must be delivered to the parties at their respective addresses. Notices may be (i) personally delivered; (ii) sent via certified or registered mail, postage prepaid; (iii) sent via overnight courier; or (iv) sent via email or facsimile. If provided by personal delivery, receipt will be deemed effective upon delivery. If sent via certified or registered mail, receipt will be deemed effective three (3) calendar days after being deposited in the United States mail. If sent via overnight courier, email or facsimile, receipt will be deemed effective two (2) calendar days after the sending thereof. t. GOVERNING LAW, FORUM. This Agreement is governed by the laws of the State of Arizona. The exclusive forum selected for any proceeding or suit in law or equity arising from or incident to this Agreement will be Maricopa County, Arizona. u. INTEGRATION CLAUSE. This Exhibit C, along with the Master Agreement and including all attachments and exhibits hereto, supersede all prior oral or written agreements, if any, between the parties and constitutes the entire agreement between the parties with respect to the work to be performed. Deleted: <#>WARRANTY OF RIGHTS. Contractor warrants it has title to, or the right to allow the City to use, the materials and services being provided and that the City may use same without suit, trouble or hindrance from Contractor or third parties. Deleted: <#>¶ Deleted: <#>provided Moved up [1]: FORCE MAJEURE. Failure by either party to perform its duties and obligations will be excused by unforeseeable circumstances beyond its reasonable control, including acts of nature, acts of the public enemy, riots, fire, explosion, legislation, and governmental regulation. The party whose performance is so affected will within five (5) calendar days of the unforeseeable circumstance notify the other party of all pertinent facts and identify the force majeure event. The party whose performance is so affected must also take all reasonable steps, promptly and diligently, to prevent such causes if it is feasible to do so, or to minimize or eliminate the effect thereof. The delivery or performance date will be extended for a period equal to the time lost by reason of delay, plus such additional time as may be reasonably necessary to overcome the effect of the delay, provided however, under no circumstances will delays caused by a force majeure extend beyond one hundred-twenty (120) calendar days from the scheduled delivery or completion date of a task unless agreed upon by the parties Deleted: A contractor, subcontractor or vendor or any employee of a contractor, subcontractor or vendor who is contracted to provide services on a regular basis at an individual school shall obtain a valid fingerprint clearance card pursuant to title 41, chapter 12, article 3.1. A school district governing board shall adopt policies to exempt a person from the requirements of this subsection if the person's normal job duties are not likely to result in independent access to or unsupervised contact with pupils. A school district, its governing board members, its school council members and its employees are exempt from civil liability for the consequences of adoption and implementation of policies and procedures pursuant to this subsection unless the school district, its governing board members, its school council members or its employees are guilty of gross negligence or intentional misconduct.¶ ¶ Additionally, Contractor will comply with the governing body’s fingerprinting policy of each individual school district and public entity. Contractor, subcontractors, vendors and their employees will not provide services on school district properties until authorized by the school district Commented [PB11]: We aren’t doing professional services. Deleted: Agreement EXHIBIT 1 DRAFT AGREEMENT 2018011 Page 40 of 41 v. PROVISIONS REQUIRED BY LAW. Any provision required by law to be in this Agreement is a part of this Agreement as if fully stated in it. w. SEVERABILITY. If any provision of this Agreement is declared void or unenforceable, such provision will be severed from this Agreement, which will otherwise remain in full force and effect. The parties will negotiate diligently in good faith for such amendment(s) of this Agreement as may be necessary to achieve the original intent of this Agreement, notwithstanding such invalidity or unenforceability. x. SURVIVING PROVISIONS. Notwithstanding any completion, termination, or other expiration of this Agreement, all provisions which, by the terms of reasonable interpretation thereof, set forth rights and obligations that extend beyond completion, termination, or other expiration of this Agreement, will survive and remain in full force and effect. Except as specifically provided in this Agreement, completion, termination, or other expiration of this Agreement will not release any party from any liability or obligation arising prior to the date of termination. y. A.R.S. SECTIONS 1-501 and 1-502. Pursuant to Arizona Revised Statutes Sections 1-501 and 1- 502, any person who applies to the City for a local public benefit (the definition of which includes a grant, contract or loan) must demonstrate his or her lawful presence in the United States. As the Agreement is deemed a local public benefit, if Contractor is an individual (natural) person or sole proprietorship, Contractor agrees to sign and submit the necessary documentation to prove compliance with the statutes as applicable. EXHIBIT 2 MAILING LABEL 2018011 Page 41 of 41 CUT ALONG THE LINE AND AFFIX TO THE FRONT OF YOUR PROPOSAL CONTAINER -------------------------------------------------------------------------------------------------------------------------------------------- SEALED PROPOSAL Submitted by: Company Name: Address: City, State, Zip: Solicitation # 2018011 INFORMATION TECHNOLOGY SOLUTIONS & SERVICES Due Date: October 23, 2017, at 3:00 p.m. local Arizona time City of Mesa Attn: Purchasing 20 E. Main St., Suite 400 Mesa, AZ 85201 -------------------------------------------------------------------------------------------------------------------------------------------    96     ATTACHMENTS  Immediately following are documents called out as additional information within our response.   D&B Report   List of partners – this is in no way a complete list but an overview of partners that SHI can  provide.   D&B REPORT     Live Report : SHI INTERNATIONAL CORP. D-U-N-S® Number: 61-142-9481 Trade Names: SOFTWARE HOUSE INTERNATIONAL - S H I Endorsement/Billing Reference: lee_harrell@SHI.com D&B Address Address 290 Davidson AveSomerset, NJ, US - 08873 Phone 732 764-8888 Fax 732-805-0818 Location Type Headquarters Web www.shi.com Added to Portfolio:  03/28/2014 Last View Date:  02/09/2016 Endorsement :lee_harrell@SHI.com Company Summary Currency: Shown in USD unless otherwise indicated D&B 3-month PAYDEX® 3-month D&B PAYDEX®: 74Lowest Risk:100;Highest Risk :1When weighted by amount, Payments to suppliersaverage 9 Days Beyond Terms D&B PAYDEX® D&B PAYDEX® 73Lowest Risk:100;Highest Risk :1When weighted by amount, Payments to suppliersaverage 11 days beyond terms Score Bar Sales (Revenue)5,797,204,000 Source: DNB, FISCAL, 12-31-2014 Net Worth 294,433,000 Source: DNB, FISCAL, 12-31-2014 Assets - Total 1,305,888,000 Source: DNB, FISCAL, 12-31-2014 Bankruptcy Found No Commercial Credit Score 526 Moderate Risk of severe payment delinquency. Commercial Credit Score Percentile 69 Moderate Risk of severe payment delinquency. D&B Viability Rating View More Details Current Ratio 1.3 Source: DNB, FISCAL, 12-31-2014 Credit Limit - D&B Aggressive 900,000.00 Based on profiles of other similar companies. PAYDEX®73 Paying 11 days past due Commercial Credit Score Class 3 Moderate Risk of severe payment delinquency. Financial Stress Score Class 2 Low to Moderate Risk of severe financialstress. Credit Limit - D&B Conservative 400,000.00 Based on profiles of other similar companies. D&B Rating 5A3 5A indicates 50 million and over, Creditappraisal of 3 is fair Printed By:Akif Nizam Date Printed:February 26, 2016 1 Commercial Credit Score Class Commercial Credit Score Class: 3Lowest Risk:1;Highest Risk :5 D&B Company Overview This is a headquarters location Branch(es) or Division(s) exist Y Chief Executive THAI LEE, CEO Year Started 1989 Employees 2850 (1400 Here) Financing SECURED SIC 7371 , 7374 Line of business Custom computerprograming, dataprocessing/preparation NAICS 541511 History Status CLEAR Financial Condition FAIR Financial Stress Score Class Financial Stress Score Class: 2Lowest Risk:1;Highest Risk :5 Public FilingsThe following data includes both open and closed filingsfound in D&B's database on this company. Record Type Number of Records Most Recent Filing DateBankruptcies0-Judgments 0 -Liens 1 01/03/14Suits0-UCCs 68 08/11/15The public record items contained herein may have beenpaid, terminated, vacated or released prior to todays date. Corporate Linkage Subsidiaries (International) Company City , Country D-U-N-S® NUMBERSHI INTERNATIONAL CORP Milton Keynes , UNITED KINGDOM 23-041-6559SHI Canada ULC North York , CANADA 24-362-9057SHI INTERNATIONAL SAS ISSY LES MOULINEAUX , FRANCE 26-213-9752 Branches (Domestic) Company City , State D-U-N-S® NUMBERSHI INTERNATIONAL CORP.TEMPE , Arizona 82-925-3066SHI INTERNATIONAL CORP.SAN DIEGO , California 82-925-3330SHI INTERNATIONAL CORP.ATLANTA , Georgia 82-925-3462SHI INTERNATIONAL CORP.SAN FRANCISCO , California 82-925-3215SHI INTERNATIONAL CORP.CHICAGO , Illinois 82-925-3769SHI INTERNATIONAL CORP.MINNEAPOLIS , Minnesota 82-925-3850SHI INTERNATIONAL CORP.SAINT LOUIS , Missouri 82-925-4023SHI INTERNATIONAL CORP.DALLAS , Texas 82-925-5251SHI INTERNATIONAL CORP.HOUSTON , Texas 82-925-5335SHI INTERNATIONAL CORP.RESTON , Virginia 82-925-5343SHI INTERNATIONAL CORP.BELLEVUE , Washington 82-925-5475SHI INTERNATIONAL CORP.TAMPA , Florida 83-240-0621SHI INTERNATIONAL CORP.SHAWNEE MISSION , Kansas 83-240-0688SHI INTERNATIONAL CORP.NEEDHAM , Massachusetts 83-240-0803SHI INTERNATIONAL CORP.DENVER , Colorado 83-240-0662 2 SHI INTERNATIONAL CORP.INDIANAPOLIS , Indiana 83-240-0852SHI INTERNATIONAL CORP.CHAPEL HILL , North Carolina 17-958-9937SHI INTERNATIONAL CORP.WAYNE , Pennsylvania 02-958-1868SHI INTERNATIONAL CORP.DURHAM , North Carolina 07-166-5395SHI INTERNATIONAL CORP.CROFTON , Maryland 04-235-0384SHI INTERNATIONAL CORP.REMER , Minnesota 05-845-6218SHI INTERNATIONAL CORP.EL SEGUNDO , California 07-940-9361SHI INTERNATIONAL CORP.NEW YORK , New York 07-940-9369SHI INTERNATIONAL CORP.SOUTHFIELD , Michigan 07-940-9364SHI INTERNATIONAL CORP.ISSAQUAH , Washington 11-899-4420This list is limited to the first 25 branches.For the complete list, Please logon to DNBi and view the Dynamic Family Tree Information. Branches (International) Company City , Country D-U-N-S® NUMBERSoftware House International NORTH VANCOUVER , CANADA 25-930-0382SHI International Corp.CENTRAL DISTRICT , HONGKONG 66-834-4679 Predictive Scores Currency: Shown in USD unless otherwise indicated Credit Capacity Summary This credit rating was assigned because of D&B's assessment of the company's creditworthiness. For more information, see the D&B Rating KeyD&B Rating :5A3  Financial Strength: 5A indicates 50 million and over Composite credit appraisal: 3 is fair The Rating was changed on May 5, 2015 because the History of the company is now "Clear ". Below is an overview of the companys rating history since 09-28-1999 D&B Rating Date Applied5A305-05-2015--11-26-20145A308-21-2014--06-12-20145A205-20-20145A305-12-20095A203-16-20095A305-07-20024A307-25-20014A209-28-1999 Sales: 5,797,204,000.00( Up by 15.9%from last year ) Number of Employees Total:2,850 (1400 here) Worth: 294,433,000( Up by 15.1%from last year )( As of 31-Dec-14) 3 Working Capital:$253,466,000 ( As of 31-Dec-14) Payment Activity:(based on 247 experiences) Average High Credit:993,122 Highest Credit:50,000,000 Total Highest Credit:209,080,850 D&B Credit Limit Recommendation Conservative credit Limit 400,000 Aggressive credit Limit:900,000  Risk category for this business :LOW   The Credit Limit Recommendation (CLR) is intended to serve as a directional benchmark for all businesses within the same line of business or industry, and is not calculated based on any individual business. Thus, the CLR is intended to help guide the credit limit decision, and must be balanced in combination with other elements which reflect the individual company's size, financial strength, payment history, and credit worthiness, all of which can be derived from D&B reports. Risk is assessed using D&Bs scoring methodology and is one factor used to create the recommended limits. See Help for details. Financial Stress Class Summary The Financial Stress Score predicts the likelihood of a firm ceasing business without paying all creditors in full, or reorganization or obtaining relief from creditors under state/federal law over the next 12 months. Scores were calculated using a statistically valid model derived from D&Bs extensive data files. The Financial Stress Class of 2 for this company shows that firms with this class had a failure rate of 0.09% (9 per 10,000), which is lower than the average of businesses in D & B's database Financial Stress Class : 2 (Lowest Risk:1; Highest Risk:5) Lower than average risk of severe financial stress, such as a bankruptcy or going out of business with unpaid debt, over the next 12 months. Probability of Failure: Risk of Severe Financial Stress for Businesses with this Class: 0.09 % (9 per 10,000) Financial Stress National Percentile : 77 (Highest Risk: 1; Lowest Risk: 100) Financial Stress Score : 1526 (Highest Risk: 1,001; Lowest Risk: 1,875) Average Risk of Severe Financial Stress for Businesses in D&B database: 0.48 % ( 48 per 10,000) The Financial Stress Class of this business is based on the following factors: Low proportion of satisfactory payment experiences to total payment experiences. High proportion of slow payment experiences to total number of payment experiences. UCC Filings reported. High number of inquiries to D & B over last 12 months. 4 Notes: The Financial Stress Class indicates that this firm shares some of the same business and financial characteristics of other companies with this classification. It does not mean the firm will necessarily experience financial stress. The Probability of Failure shows the percentage of firms in a given Class that discontinued operations over the past year with loss to creditors. The Probability of Failure - National Average represents the national failure rate and is provided for comparative purposes. The Financial Stress National Percentile reflects the relative ranking of a company among all scorable companies in D&Bs file. The Financial Stress Score offers a more precise measure of the level of risk than the Class and Percentile. It is especially helpful to customers using a scorecard approach to determining overall business performance. Norms National %This Business 77Region: MIDDLE ATLANTIC 44Industry: BUSINESS, LEGAL AND ENGINEERINGSERVICES 52Employee range: 500+61Years in Business: 26+77This Business has a Financial Stress Percentile that shows:Lower risk than other companies in the same region.Lower risk than other companies in the same industry.Lower risk than other companies in the same employee size range.Similar risk compared to other companies with a comparable number of years in business. Credit Score Summary The Commercial Credit Score (CCS) predicts the likelihood of a business paying its bills in a severely delinquent manner (91 days or more past terms). The Credit Score class of 3 for this company shows that 5.8% of firms with this class paid one or more bills severely delinquent, which is lower than the average of businesses in D & B's database. Credit Score Class : 3 Lowest Risk:1;Highest Risk :5 Incidence of Delinquent Payment Among Companies with this Classification: 5.80 % Average compared to businesses in D&Bs database: 10.20 % Credit Score Percentile : 69 (Highest Risk: 1; Lowest Risk: 100) Credit Score : 526 (Highest Risk: 101; Lowest Risk:670) The Credit Score Class of this business is based on the following factors: Proportion of slow payments in recent months Recent high balance past due Financial ratios Proportion of past due balances to total amount owing Higher risk industry based on delinquency rates for this industry Notes: The Commercial Credit Score Risk Class indicates that this firm shares some of the same business and financial characteristics of other companies with this classification. It does not mean the firm will necessarily experience severe delinquency. The Incidence of Delinquent Payment is the percentage of companies with this classification that were reported 91 days past due or more by creditors. The calculation of this value is based on D&B's trade payment database. The Commercial Credit Score percentile reflects the relative ranking of a firm among all scorable companies in D&B's file. The Commercial Credit Score offers a more precise measure of the level of risk than the Risk Class and Percentile. It is especially helpful to customers using a scorecard approach to determining overall business performance. Norms National % 5 This Business 69Region: MIDDLE ATLANTIC 51Industry: BUSINESS, LEGAL AND ENGINEERINGSERVICES 43Employee range: 500-38527 84Years in Business: 26+ 85This business has a Credit Score Percentile that shows:Lower risk than other companies in the same region.Lower risk than other companies in the same industry.Higher risk than other companies in the same employee size range.Higher risk than other companies with a comparable number of years in business. Trade Payments Currency: Shown in USD unless otherwise indicated D&B PAYDEX® The D&B PAYDEX is a unique, weighted indicator of payment performance based on payment experiences as reported to D&B by trade references. Learn more about the D&B PAYDEX Timeliness of historical payments for this company. Current PAYDEX is 73 Equal to 11 days beyond terms ( Pays more slowly than the average for its industry of 2 days beyond terms ) Industry Median is 79 Equal to 2 days beyond terms Payment Trend currently is Unchanged, compared to payments three months ago Indications of slowness can be the result of dispute over merchandise, skipped invoices etc. Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed. Total payment Experiences in D&Bs File (HQ)247 Payments Within Terms (not weighted)66 % Trade Experiences with Slow or Negative Payments(%)42.51% Total Placed For Collection 1 High Credit Average 993,122 Largest High Credit 50,000,000 Highest Now Owing 50,000,000 Highest Past Due 15,000,000 D&B PAYDEX® : 73 (Lowest Risk:100; Highest Risk:1) When weighted by amount, payments to suppliers average 11 days beyond terms 3-Month D&B PAYDEX® : 74 (Lowest Risk:100; Highest Risk:1) Based on payments collected over last 3 months. When weighted by amount, payments to suppliers average 9 days beyond terms D&B PAYDEX® Comparison 6 Current Year PAYDEX® of this Business compared to the Primary Industry from each of the last four quarters. The Primary Industry is Custom computer programing, data processing/preparation , based on SIC code 7371 . Shows the trend in D&B PAYDEX scoring over the past 12 months. 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/15 11/15 12/15 1/16 2/16 This Business 73 72 72 72 73 73 73 73 74 74 73 73 Industry Quartiles            Upper 80 ..80 ..80 ..80 ..Median 79 ..79 ..79 ..79 ..Lower 72 ..72 ..72 ..71 .. Current PAYDEX for this Business is 73 , or equal to 11 days beyond terms The 12-month high is 74 , or equal to 9 DAYS BEYOND terms The 12-month low is 72 , or equal to 12 DAYS BEYOND terms Previous Year Shows PAYDEX of this Business compared to the Primary Industry from each of the last four quarters. The Primary Industry is Custom computer programing, data processing/preparation , based on SIC code 7371 . Previous Year 03/14 Q1'14 06/14 Q2'14 09/14 Q3'14 12/14 Q4'14 This Business 76 77 73 72 Industry Quartiles    Upper 80 80 80 80Median79797979Lower72727272 Based on payments collected over the last 4 quarters. Current PAYDEX for this Business is 73 , or equal to 11 days beyond terms The present industry median Score is 79 , or equal to 2 days beyond terms Industry upper quartile represents the performance of the payers in the 75th percentile Industry lower quartile represents the performance of the payers in the 25th percentile Payment Habits For all payment experiences within a given amount of credit extended, shows the percent that this Business paid within terms. Provides number of experiences to calculate the percentage, and the total credit value of the credit extended. $ Credit Extended # Payment Experiences Total Amount % of Payments Within TermsOver 100,000 46 206,250,000 79%50,000-100,000 13 930,000 80%15,000-49,999 39 1,065,000 71%5,000-14,999 32 220,000 67%1,000-4,999 42 76,500 66%Under 1,000 38 14,250 61% Based on payments collected over last 24 months. All Payment experiences reflect how bills are paid in relation to the terms granted. In some instances, payment beyond terms can be the result of disputes over merchandise, skipped invoices etc. 7 Payment SummaryThere are 247 payment experience(s) in D&Bs file for the most recent 24 months, with 165 experience(s) reported during the last three month period.The highest  Now Owes on file is 50,000,000 . The highest  Past Due on file is 15,000,000 Below is an overview of the companys currency-weighted payments, segmented by its suppliers primary industries:  Total Revd (#) Total Amts Largest High Credit Within Terms (%) Days Slow <31 31-60 61-90 90> (%) (%) Top Industries   Whol electronic parts 20 71,122,000 50,000,000 50 50 0 0 0Whol computers/softwr 17 101,800,500 50,000,000 98 2 0 0 0Prepackaged software 11 4,300,000 2,000,000 91 7 0 2 0Telephone communictns 11 224,850 100,000 98 2 0 0 0Mfg computers 10 15,357,750 8,000,000 90 8 2 0 0Nonclassified9723,750 500,000 61 39 0 0 0Custom programming 7 1,008,750 600,000 50 0 30 0 20Short-trm busn credit 7 155,100 100,000 90 10 0 0 0Whol office supplies 5 62,250 55,000 56 44 0 0 0Misc business credit 5 95,000 50,000 100 0 0 0 0Whol office equipment 4 2,285,000 1,000,000 49 11 18 0 22Mfg process controls 4 195,000 65,000 67 33 0 0 0Mfg photograph equip 4 33,500 25,000 100 0 0 0 0Trucking non-local 4 6,250 5,000 40 12 8 0 40Whol appliances 3 4,002,750 4,000,000 100 0 0 0 0Whol misc profsn eqpt 3 203,000 200,000 51 49 0 0 0Misc business service 3 43,500 40,000 97 0 3 0 0Engineering services 3 67,500 35,000 96 0 2 0 2Public finance 3 31,750 30,000 100 0 0 0 0Mfg calculating eqpt 3 15,750 15,000 3 0 95 0 2Ret mail-order house 3 11,000 7,500 69 11 20 0 0Mfg electric test prd 3 15,000 5,000 100 0 0 0 0Arrange cargo transpt 3 2,850 2,500 0 6 0 94 0Computer system desgn 2 2,050,000 2,000,000 49 50 1 0 0Business consulting 2 2,002,500 2,000,000 50 50 0 0 0Mfg measure devices 2 1,000,750 1,000,000 50 50 0 0 0Mfg computer storage 2 507,500 500,000 100 0 0 0 0Misc equipment rental 2 95,000 65,000 100 0 0 0 0Radiotelephone commun 2 55,000 40,000 73 0 0 0 27Data processing svcs 2 32,500 30,000 100 0 0 0 0Mfg comp peripherals 2 31,000 30,000 3 97 0 0 0Mfg switchgear-boards 2 30,000 20,000 33 0 67 0 0Whol service paper 2 22,500 20,000 89 11 0 0 0Mfg public bldg furn 2 16,000 15,000 94 0 3 3 0Detective/guard svcs 2 10,250 10,000 51 49 0 0 0Whol electrical equip 2 5,250 5,000 52 0 48 0 0Mfg sheet metalwork 1 200,000 200,000 50 0 0 0 50Mfg misc plastic prdt 1 100,000 100,000 50 0 0 50 0Mfg medical instrmnt 1 100,000 100,000 0 100 0 0 0Travel agency 1 95,000 95,000 100 0 0 0 0Mfg environment cntrl 1 85,000 85,000 100 0 0 0 0Misc advertising svcs 1 80,000 80,000 100 0 0 0 0 8 Tour operator 1 65,000 65,000 100 0 0 0 0Air courier service 1 45,000 45,000 50 0 0 0 50Mfg relays/controls 1 45,000 45,000 50 0 0 0 50Electric eqpt repair 1 25,000 25,000 50 0 0 50 0Mfg recording media 1 20,000 20,000 0 0 100 0 0Mfg refrig/heat equip 1 20,000 20,000 100 0 0 0 0Copper roll/drawing 1 10,000 10,000 100 0 0 0 0Whol auto parts 1 7,500 7,500 0 100 0 0 0Mfg nonwd office furn 1 5,000 5,000 50 50 0 0 0Ret stationery 1 5,000 5,000 50 0 50 0 0Help supply service 1 5,000 5,000 100 0 0 0 0Misc publishing 1 2,500 2,500 50 0 0 50 0Nonphysical research 1 2,500 2,500 0 100 0 0 0Natnl commercial bank 1 2,500 2,500 100 0 0 0 0Mfg signs/ad specltys 1 2,500 2,500 100 0 0 0 0Ret electronics 1 2,500 2,500 100 0 0 0 0Mfg plane engine/part 1 1,000 1,000 0 0 0 0 100Coating/engrave svcs 1 1,000 1,000 50 50 0 0 0Whol industrial equip 1 1,000 1,000 100 0 0 0 0Whol piece goods 1 1,000 1,000 50 50 0 0 0Information retrieval 1 1,000 1,000 100 0 0 0 0Gravure printing 1 1,000 1,000 50 0 0 50 0Mfg computer terminal 1 1,000 1,000 50 50 0 0 0Mfg manifold forms 1 750 750 100 0 0 0 0Whol heating/ac equip 1 500 500 0 0 100 0 0Whol nondurable goods 1 500 500 100 0 0 0 0Mfg telephone equip 1 250 250 100 0 0 0 0Mfg frozen deserts 1 250 250 0 0 100 0 0Books-print/publish 1 100 100 0 0 0 0 100Reg misc coml sector 1 100 100 100 0 0 0 0Mfg broadcastng equip 1 100 100 0 100 0 0 0Mfg misc office eqpt 1 50 50 100 0 0 0 0Lithographic printing 1 50 50 100 0 0 0 0Whol chemicals 1 50 50 0 0 0 0 100Mfg lab apparatus 1 0 0 0 0 0 0 0 Other payment categories  Cash experiences 24 505,550 500,000  Payment record unknown 9 19,450 10,000  Unfavorable comments 1 100 100  Placed for collections 1 N/A 0   Total in D&B's file 247 209,080,850 50,000,000     Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed.Indications of slowness can be result of dispute over merchandise, skipped invoices etc. Detailed payment history for this company Date Reported (mm/yy) Paying Record High Credit Now Owes Past Due Selling Terms Last Sale Within (month)02/16 Ppt 65,000 5,000  LeaseAgreemnt   9 Ppt 40,000 30,000 0  1 moPpt30,000 100  LeaseAgreemnt  Ppt 1,000 1,000 0  1 moPpt-Slow 30 500,000 250,000 250,000 N30 1 moPpt-Slow 30 45,000 25,000 7,500 N30 1 moSlow 30 10,000 10,000 10,000 N30 1 mo 01/16 Ppt 40,000,000 20,000,000 0 N30 1 moPpt7,000,000 7,000,000 0 N30 1 moPpt1,000,000 95,000 0  1 moPpt500,000 100 0  1 moPpt100,000 100,000 0  1 moPpt85,000 20,000 0  1 moPpt50,000 25,000 0  1 moPpt40,000 25,000 0  1 moPpt40,000 35,000 0  1 moPpt25,000 0   6-12 mosPpt20,000 20,000 0 N30 1 moPpt15,000 10,000 0  1 moPpt10,000 0 0  6-12 mosPpt7,500 7,500 0  1 moPpt5,000 5,000 0  1 moPpt5,000 2,500 0  1 moPpt5,000 0   6-12 mosPpt5,000 0 0  4-5 mosPpt5,000 5,000 0  1 moPpt2,500 2,500 0  1 moPpt2,500 0 0 N30 2-3 mosPpt2,500 0 0  2-3 mosPpt2,500 2,500 0  1 moPpt2,500 250 0  1 moPpt2,500 750 0  1 moPpt2,500 2,500 0  1 moPpt2,500 0 0  2-3 mosPpt1,000 1,000 0  1 moPpt1,000 0 0  4-5 mosPpt1,000 500 0  1 moPpt1,000 1,000 0  1 moPpt75000 2-3 mosPpt750   1 moPpt7502500  Ppt 250 250 0 N30 1 moPpt25000 2-3 mosPpt25000 1 moPpt25000 6-12 mosPpt25000 6-12 mosPpt5000N302-3 mosPpt-Slow 30 50,000,000 50,000,000 15,000,000  1 moPpt-Slow 30 2,000,000 1,000,000 1,000,000  1 moPpt-Slow 30 400,000 400,000 0 N30 1 moPpt-Slow 30 200,000 100,000 0  1 moPpt-Slow 30 100,000 15,000 750  1 moPpt-Slow 30 55,000 55,000 5,000 1 10 N30 1 moPpt-Slow 30 10,000 10,000 2,500  1 mo 10 Ppt-Slow 30 5,000 1,000 1,000 1 15 N30 1 moPpt-Slow 30 1,000 0 0  2-3 mosPpt-Slow 60 600,000 85,000 15,000  1 moPpt-Slow 60 2,500 2,500 1,000  1 moPpt-Slow 60 1,000 0 0  2-3 mosPpt-Slow 90 100,000 0 0  2-3 mosPpt-Slow 90 25,000 15,000 15,000  2-3 mosPpt-Slow 90 1,000 500 500  2-3 mosPpt-Slow 240 5,000 0 0  2-3 mosSlow 10 500 0 0  6-12 mosSlow 10 500 0 0 N30 6-12 mosSlow 30 100,000 25,000 25,000   1 mo Slow 30 7,500 7,500 5,000   1 mo Slow 30 2,500 1,000 1,000 N30 1 mo Slow 60 500 0 0 N30 6-12 mos Slow 60 500 100 0   1 mo Slow 90 2,500 2,500 2,500   2-3 mos Slow 30-90 1,000 500 100   1 mo Slow 30-90 250 250 250   4-5 mos Slow 30-90 100 100 100     Slow 30-90+15,000 7,500 7,500   4-5 mos Slow 90+50 50 50     (077)0 0 0 Cashaccount 2-3 mos06/15 Slow 60 20,000 0 0 N30 6-12 mos 03/15 Slow 60 20,000 0 0   4-5 mos (080) Credit refused .100 100 100  1 mo     Payments Detail Key:30 or more days beyond termsPayment experiences reflect how bills are paid in relation to the terms granted. In some instances payment beyond terms can be the result of disputesover merchandise, skipped invoices, etc. Each experience shown is from a separate supplier. Updated trade experiences replace those previouslyreported. Public Filings Currency: Shown in USD unless otherwise indicated Summary The following data includes both open and closed filings found in D&B's database on this company. Record Type # of Records Most Recent Filing DateBankruptcy Proceedings 0 -Judgments 0 -Liens 1 01/03/14Suits0-UCCs 68 08/11/15 The following Public Filing data is for information purposes only and is not the official record. Certified copies can only be obtained from the official source. Liens A lien holder can file the same lien in more than one filing location. The appearance of multiple liens filed by the same lien holder against a debtor may be indicative of such an occurrence. 11 Amount 64 Status Released CASE NO.J819037 Type County Tax Filed By TAX COLLECTOR Against SHI INTERNATIONAL CORP, SAN FRANCISCO, CA Where Filed SAN FRANCISCO COUNTY RECORDERS OFFICE, SAN FRANCISCO, CA Date Status Attained 11/20/15 Date Filed 01/03/14 Latest Info Received 12/23/15 UCC Filings Type Continuation Sec. Party IBM CREDIT LLC Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2004-05-18 Latest Info Received 06/01/04 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral All Negotiable instruments including proceeds and products - All Inventory including proceeds andproducts - All Account(s) including proceeds and products - All Computer equipment including proceedsand products - and OTHERS Type Amendment Sec. Party IBM CREDIT LLC Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2005-02-01 Latest Info Received 03/02/05 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Type Amendment Sec. Party IBM CREDIT CORPORATION, ATLANTA, GA IBM CREDIT CORPORATION, ARMONK, NY Debtor SOFTWARE HOUSE INTERNATIONAL INC and OTHERS Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2008-10-02 Latest Info Received 11/25/08 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   12 Type ContinuationSec. Party IBM CREDIT CORPORATION, ARMONK, NY IBM CREDIT CORPORATION, ATLANTA, GADebtorSHI INTERNATIONAL CORP. and OTHERSFiling No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2009-03-16 Latest Info Received 05/15/09 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral CONTRACT and proceeds Type Partial release Sec. Party IBM CREDIT CORPORATION, ATLANTA, GA Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2011-10-03 Latest Info Received 12/20/12 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral SECURITY INTEREST and proceeds Type Partial release Sec. Party IBM CREDIT CORPORATION, ARMONK, NY Debtor SHI INTERNATIONAL CORP. and OTHERS Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2011-12-21 Latest Info Received 04/07/12 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral SECURITY INTEREST and proceeds Type Partial release Sec. Party IBM CREDIT CORPORATION, ATLANTA, GA Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2012-03-23 Latest Info Received 05/16/12 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral AGREEMENT and proceeds 13 Type Partial releaseSec. Party IBM CREDIT LLC, ATLANTA, GADebtorSOFTWARE HOUSE INTERNATIONAL, INC.Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2012-06-25 Latest Info Received 09/04/12 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral SECURITY INTEREST and proceeds Type Partial release Sec. Party IBM CREDIT CORPORATION, ATLANTA, GA Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2012-08-01 Latest Info Received 09/28/12 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral CONTRACT and proceeds Type Partial release Sec. Party IBM CREDIT CORPORATION, ATLANTA, GA Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2012-11-01 Latest Info Received 01/10/13 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral CONTRACT and proceeds Type Amendment Sec. Party IBM CREDIT CORPORATION, ATLANTA, GA Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2012-11-15 Latest Info Received 02/28/13 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral SECURITY INTEREST and proceeds 14 Type Partial releaseSec. Party IBM CREDIT CORPORATION, ATLANTA, GADebtorSOFTWARE HOUSE INTERNATIONAL, INC.Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2013-02-13 Latest Info Received 04/18/13 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Type Continuation Sec. Party IBM CREDIT CORPORATION, ATLANTA, GA Debtor SOFTWARE HOUSE INTERNATIONAL, INC. Filing No.1922103 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2014-04-16 Latest Info Received 09/09/14 Original UCC Filed Date 1999-08-05 Original Filing No.1922103   Collateral Inventory including proceeds and products - Chattel paper including proceeds and products Type Original Sec. Party BANC OF AMERICA LEASING & CAPITAL, LLC, CHICAGO, IL Debtor SHI INTERNATIONAL CORP Filing No.26077512 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2011-09-14 Latest Info Received 10/14/11   Type Amendment Sec. Party BANC OF AMERICA LEASING & CAPITAL. LLC, CHICAGO, IL BANK OF AMERICA, NATIONALASSOCIATION, CHICAGO, IL Debtor SHI INTERNATIONAL CORP Filing No.26077512 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2011-10-03 Latest Info Received 02/16/12 Original UCC Filed Date 2011-09-14 Original Filing No.26077512   Collateral Accounts receivable and proceeds - Account(s) and proceeds Type Original Sec. Party CITIBANK, N.A., ITS BRANCHES, SUBSIDIARIES AND AFFILIATES, NEW YORK, NY Debtor SHI INTERNATIONAL CORP. 15 Filing No.51220974Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ  Date Filed 2015-06-25 Latest Info Received 07/31/15   Collateral Accounts receivable and proceeds - Account(s) and proceeds Type Original Sec. Party CITIBANK, N.A., ITS BRANCHES, SUBSIDIARIES AND AFFILIATES, NEW YORK, NY Debtor SHI INTERNATIONAL CORP. Filing No.50581191 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2013-07-25 Latest Info Received 08/16/13   Collateral Inventory and proceeds - Assets and proceeds - Account(s) and proceeds - General intangibles(s) andproceeds - and OTHERS Type Original Sec. Party EVERBANK COMMERCIAL FINANCE, INC., PARSIPPANY, NJ Debtor SHI INTERNATIONAL CORP. Filing No.50451760 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2013-02-21 Latest Info Received 03/18/13   Collateral Inventory and proceeds - Assets and proceeds - Account(s) and proceeds - Computer equipment andproceeds - and OTHERS Type Original Sec. Party SG EQUIPMENT FINANCE USA CORP., JERSEY CITY, NJ Debtor SHI INTERNATIONAL CORP. Filing No.50363506 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2012-10-17 Latest Info Received 12/20/12   Collateral Accounts receivable and proceeds - Contract rights and proceeds Type Original Sec. Party JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, CHICAGO, IL Debtor SHI INTERNATIONAL CORP. Filing No.50219681 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2012-04-04 Latest Info Received 04/19/12   16 Collateral General intangibles(s) including proceeds and products - Computer equipment including proceeds andproducts - Equipment including proceeds and productsTypeOriginal Sec. Party HEWLETT-PACKARD FINANCIAL SERVICES COMPANY, BERKELEY HEIGHTS, NJ Debtor SHI INTERNATIONAL CORP. Filing No.50126880 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2011-11-18 Latest Info Received 12/12/11   Collateral General intangibles(s) including proceeds and products - Computer equipment including proceeds andproducts - Equipment including proceeds and products Type Original Sec. Party HEWLETT-PACKARD FINANCIAL SERVICES COMPANY, BERKELEY HEIGHTS, NJ Debtor SHI INTERNATIONAL CORP. Filing No.50111916 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2011-10-28 Latest Info Received 11/11/11   Collateral Equipment and proceeds Type Original Sec. Party BANC OF AMERICA LEASING & CAPITAL, LLC, CHICAGO, IL EMC CORPORATION, HOPKINTON, MA Debtor SHI INTERNATIONAL CORP. Filing No.26705781 Filed With SECRETARY OF STATE/UCC DIVISION, TRENTON, NJ   Date Filed 2015-05-14 Latest Info Received 07/28/15   Government Activity Activity summaryBorrower (Dir/Guar)NOAdministrative Debt NOContractorYESGranteeNOParty excluded from federal program(s)NO   Possible candidate for socio-economic program considerationLabour Surplus Area N/ASmall Business N/A8(A) firm N/A The details provided in the Government Activity section are as reported to Dun & Bradstreet by the federal government and other sources. 17 Special Events Currency: Shown in USD unless otherwise indicated Special Events 02/24/2016 -MERGER/ACQUISITION :According to published reports, SHI International Corp. announced that it has acquired Eastridge, DUNS 124591228, (Winston Salem, NC). History & Operations Currency: Shown in USD unless otherwise indicated Company Overview Company Name:SHI INTERNATIONAL CORP. Doing Business As :SOFTWARE HOUSE INTERNATIONAL ,S H I Street Address:290 Davidson AveSomerset ,  NJ  08873 Phone:732 764-8888 Fax:732-805-0818 URL:http://www.shi.com History Is clear   Operations Profitable   Present management control 27 years   Annual Sales 5,797,204,000   History The following information was reported: 05/06/2015 Officer(s): THAI LEE, CEOKOGUAN LEO, CHBHAL JAGGER, V PRESPAUL NG, CFO-SEC-V PRESMELISSA GRAHAM, V PRESCELESTE LEE, V PRESAL FITZGERALD, V PRES DIRECTOR(S) :THE OFFICER(S) The New Jersey Secretary of State's business registration file showed that SHI International Corp. was registered as a corporation on November 1989, under the file registration number 0100434583. Business started 1989 by Leo Koguan. 60% of capital stock is owned by Thai Lee. 40% of capital stock is owned by Leo Koguan. In November 1989, Software House International Inc was formed by Leo Koguan with the purchased of assets of Software House. THAI LEE born 1958. Thai holds an MBA from Harvard Business School. KOGUAN LEO born 1955. Koguan holds a Master's in International Relations. HAL JAGGER. Hal obtained his B.A. of Political Science from the University of California, Davis in 1994. PAUL NG. 1989-present active here. MELISSA GRAHAM. Antecedents not available. CELESTE LEE. Celeste holds a Master's from Harvard University. AL FITZGERALD. Antecedents not available. 18 Operations 05/06/2015   Description: Provides computer programming services, specializing in software development or applications. Provides computer and dataprocessing, and preparation and data processing services.Has 15,000 account(s). Terms are Net 30 days. Sells to commercial concerns and governmental accounts. Territory :International.Nonseasonal. Employees:2,850 which includes officer(s). 1,400 employed here. Facilities:Owns 440,000 sq. ft. in on 1st-4th floor of a five story brick a building. Location:Central business section on side street. Branches:This business has multiple branches, detailed branch/division information is available in Dun & Bradstreet's linkage or familytree products. Subsidiaries: This business has one subsidiary.Shi/Government Solutions, Inc. SIC & NAICS SIC: Based on information in our file, D&B has assigned this company an extended 8-digit SIC. D&B's use of 8-digit SICs enables us to be more specific about a company's operations than if we use the standard 4-digit code. The 4-digit SIC numbers link to the description on the Occupational Safety & Health Administration (OSHA) Web site. Links open in a new browser window. 7371 0300 Computer software development and applications 7374 0000 Data processing and preparation 7374 9902 Data processing service NAICS: 541511 Custom Computer Programming Services 518210 Data Processing, Hosting, and Related Services 518210 Data Processing, Hosting, and Related Services Financials Company Financials: D&B 05/06/2015 Two-year Statement Comparative: Fiscal Consolidated Dec 31 2014 Fiscal Consolidated Dec 31 2013Current Assets 1,264,921,000 1,087,624,149Current Liabilities 1,011,455,000 873,910,309Current Ratio 1.25 1.24Working Capital 253,466,000 213,713,840Other Assets 40,967,000 42,138,512Net Worth 294,433,000 255,852,352 19 Sales 5,797,204,000 5,003,074,575Long Term Liab 0 0Net Profit (Loss)89,269,000 74,773,105 Additional Financial Data Fiscal Consolidated statement dated DEC 31 2014  AssetsCash 84,268,000Accts Rec 1,122,641,000Inventory52,776,000Prepaid Exps & Sundry Receivable 5,236,000 Curr Assets 1,264,921,000  LiabilitiesAccts Pay 801,601,000Wholesale Financing Agree Advances 163,538,000Accruals45,814,000Due To Related Party 502,000 Curr Liabs 1,011,455,000Fixt & Equip 40,162,000Security Deposits & Other Assets 805,000     Total Assets 1,305,888,000  COMMON STOCK 100,000ADDIT. PD.-IN CAP 300,000ACCUM OTHER COMPREHENSIVE INCOME 1,895,000RETAINED EARNINGS 292,138,000 Total Liabilities + Equity 1,305,888,000 From JAN 01 2014 to DEC 31 2014 annual sales $5,797,204,000; cost of goods sold $5,354,580,000. Gross profit $442,624,000; operating expenses$348,727,000. Operating income $93,897,000; other income $794,000; other expenses $3,512,000; net income before taxes $91,179,000; other tax$1,910,000. Net income $89,269,000. Extent of audit, if any, not indicated. Fixed assets shown net less $33,278,760 depreciation. On MAY 01 2015 Akif Nizam, controller, referred to the above figures. Request Financial Statements Requested financials are provided bySHI INTERNATIONAL CORP.and are not DUNSRight certified. Key Business Ratios Statement Date Dec 31 2014 Based on this Number of Establishments 18 Industry Norms Based On 18 Establishments This Business Industry Median Industry Quartile Profitability    Return on Sales %1.5 7.8 4Return on Net Worth %30.3 16.8 2 Short-Term Solvency    Current Ratio 1.3 2.6 4Quick Ratio 1.2 2.0 3 20 Efficiency    Assets to Sales %22.5 88.1 1Sales / Net Working Capital 22.9 3.0 1 Utilization    Total Liabilities / Net Worth (%)343.5 59.5 4  This information may not be reproduced in whole or in part by any means of reproduction. © 2005-2016 Dun & Bradstreet, Inc. 21    97     PARTNERS  Immediately following is a high‐level list of the products SHI is able to provide to the City of Mesa/IPA.  Upon award, SHI would be happy to provide a much more comprehensive list if necessary.  3M ‐ Computer Accessories, Digital  Telephones  3M ‐ General Accessories and Telephony  Accellion ‐ Software  Acer ‐ Computer Accessories, Digital  Telephones  Acer ‐ Computers  Acer ‐ Displays and monitors  Acronis Software ‐ General Accessories and Telephony  Acronis Software ‐ Software  Acronis Software ‐ Software  AddOn ‐ Cables  AddOn ‐ General Accessories and Telephony  AddOn ‐ Memory  Adesso ‐ Computer Accessories, Digital  Telephones  Adobe ‐ Software  Agate Software ‐ Software  AlienVault ‐ Software  Alliance Enterprises ‐ Software  Altova ‐ Software  APC by Schneider Electric ‐ Computer Accessories, Digital  Telephones  APC by Schneider Electric ‐ Racks  Apple ‐ Computer Accessories, Digital  Telephones  Apple ‐ Computers  Apple ‐ General Accessories and Telephony  Apricorn ‐ Storage Products  Arcserve ‐ Software  AssetWorks ‐ Software  ASUSTeK COMPUTER ‐ Computer Accessories, Digital  Telephones  ASUSTeK COMPUTER ‐ Computers  ASUSTeK COMPUTER ‐ Displays and monitors  ASUSTeK COMPUTER ‐ General Accessories and Telephony  Atlassian ‐ Software  Attachmate ‐ Software  Attunity ‐ Software  Audio ‐ Technica ‐ General Accessories and Telephony  Autodesk ‐ Software  Avery ‐ Office Supplies  Axiom Memory Solutions ‐ Batteries  Axiom Memory Solutions ‐ Cables  Axiom Memory Solutions ‐ General Accessories and Telephony  Axiom Memory Solutions ‐ Memory  Axiom Memory Solutions ‐ Storage Products  Axway ‐ Software  B&B Electronics Manufacturing Company ‐ General Accessories and Telephony     98     Barracuda Networks ‐ General Accessories and Telephony  Barracuda Networks ‐ Software  Barracuda Networks ‐ Storage Products  Battery Technology ‐ Batteries  Battery Technology ‐ General Accessories and Telephony  Belkin ‐ Cables  Belkin ‐ Computer Accessories, Digital  Telephones  Belkin ‐ Computer Bags and Cases  Belkin ‐ General Accessories and Telephony  BenQ ‐ Displays and monitors  Bentley Systems ‐ Software  BeyondTrust Software ‐ Software  Bitdefender ‐ Software  Black Box ‐ Cables  Black Box ‐ Computer Accessories, Digital  Telephones  Black Box ‐ General Accessories and Telephony  Black Box ‐ Racks  Bluebeam Software ‐ Software  Bluebeam Software ‐ Software  BMC Software ‐ Software  Bomgar ‐ Software  Box ‐ Software  Brenthaven ‐ Computer Bags and Cases  Brocade Communications Systems ‐ Computer Accessories, Digital  Telephones  Brocade Communications Systems ‐ Software  Brocade Communications Systems ‐ Software  Brother ‐ Computer Accessories, Digital  Telephones  Brother ‐ Office Supplies  Brother ‐ Printers  Buffalo Technology ‐ Storage Products  BUSlink ‐ General Accessories and Telephony  BUSlink ‐ Storage Products  C2G ‐ Cables  C2G ‐ Computer Accessories, Digital  Telephones  C2G ‐ General Accessories and Telephony  CA Technologies ‐ Software  Canon ‐ Batteries  Canon ‐ Cameras  Canon ‐ Computer Accessories, Digital  Telephones  Canon ‐ General Accessories and Telephony  Canon ‐ Printers  Carbon Black ‐ Software  Cartegraph ‐ Software  Case Logic ‐ Computer Bags and Cases  Case Logic ‐ General Accessories and Telephony  Cellebrite ‐ Software  Check Point Software Technologies ‐ General Accessories and Telephony  Check Point Software Technologies ‐ Software     99     Cherwell ‐ Software  Chief Manufacturing ‐ Computer Accessories, Digital  Telephones  Cisco Systems ‐ Cables  Cisco Systems ‐ Computer Accessories, Digital  Telephones  Cisco Systems ‐ General Accessories and Telephony  Cisco Systems ‐ Racks  Cisco Systems ‐ Software  Cisco Systems ‐ Software  Cisco Systems ‐ Storage Products  Citrix Systems ‐ Software  CODi ‐ Computer Bags and Cases  CommVault Systems ‐ Software  Comprehensive Cable ‐ Cables  Condusiv Technologies ‐ Software  Corel ‐ Software  CrowdStrike ‐ Software  CSI Technology Group ‐ Software  Da‐Lite Screen ‐ General Accessories and Telephony  Decision Lens ‐ Software  Dell ‐ Batteries  Dell ‐ Cables  Dell ‐ Computer Accessories, Digital  Telephones  Dell ‐ Computer Bags and Cases  Dell ‐ Computers  Dell ‐ Displays and monitors  Dell ‐ General Accessories and Telephony  Dell ‐ Memory  Dell ‐ Printers  Dell ‐ Racks  Dell ‐ Storage Products  D‐Link Systems ‐ Computer Accessories, Digital  Telephones  DocuSign ‐ Software  Dropbox ‐ Software  Eaton Corporation ‐ Computer Accessories, Digital  Telephones  Eaton Corporation ‐ Racks  EDGE Memory ‐ Memory  EDGE Memory ‐ Storage Products  Elite Screens ‐ General Accessories and Telephony  Embarcadero Technologies ‐ Software  Embarcadero Technologies ‐ Software  EMC ‐ Software  enChoice ‐ Software  EntIT Software LLC ‐ Software  EntIT Software LLC ‐ Software  Epson ‐ Computer Accessories, Digital  Telephones  Epson ‐ General Accessories and Telephony  Epson ‐ Printers  eReplacements ‐ Batteries     100     eReplacements ‐ General Accessories and Telephony  Ergotron ‐ Computer Accessories, Digital  Telephones  Ergotron ‐ General Accessories and Telephony  Erwin ‐ Software  Erwin ‐ Software  ESET ‐ Software  Exabeam, Inc ‐ Software  F5 Networks ‐ Software  Faronics ‐ Software  Fellowes ‐ General Accessories and Telephony  FireEye ‐ Software  Fischer International Identity ‐ Software  Flexera Software ‐ Software  Forcepoint LLC ‐ Software  ForeScout Technologies ‐ Software  ForgeRock ‐ Software  Fortinet ‐ General Accessories and Telephony  Fortinet ‐ Software  Fortinet ‐ Software  Fujifilm ‐ Cameras  Fujitsu ‐ Batteries  Fujitsu ‐ Computer Accessories, Digital  Telephones  Fujitsu ‐ Computer Bags and Cases  Fujitsu ‐ Computers  Fujitsu ‐ General Accessories and Telephony  Fujitsu ‐ Memory  Fujitsu ‐ Storage Products  Genus Technologies ‐ Software  GFI Software ‐ Software  GlobalSCAPE ‐ General Accessories and Telephony  GlobalSCAPE ‐ Software  Griffin Technology ‐ General Accessories and Telephony  Hewlett Packard Enterprise ‐ Cables  Hewlett Packard Enterprise ‐ Computer Accessories, Digital  Telephones  Hewlett Packard Enterprise ‐ Computers  Hewlett Packard Enterprise ‐ General Accessories and Telephony  Hewlett Packard Enterprise ‐ Memory  Hewlett Packard Enterprise ‐ Racks  Hewlett Packard Enterprise ‐ Software  Hewlett Packard Enterprise ‐ Software  Hewlett Packard Enterprise ‐ Storage Products  Honeywell ‐ Computer Accessories, Digital  Telephones  Honeywell ‐ General Accessories and Telephony  Honeywell ‐ Printers  Hootsuite ‐ Software  HP, Inc. ‐ Batteries  HP, Inc. ‐ Computer Accessories, Digital  Telephones  HP, Inc. ‐ Computer Bags and Cases     101     HP, Inc. ‐ Computers  HP, Inc. ‐ Displays and monitors  HP, Inc. ‐ General Accessories and Telephony  HP, Inc. ‐ Memory  HP, Inc. ‐ Office Supplies  HP, Inc. ‐ Printers  HP, Inc. ‐ Software  HP, Inc. ‐ Storage Products  IBM ‐ Computer Accessories, Digital  Telephones  IBM ‐ Software  Idera ‐ Software  Imperva ‐ Software  Imprivata, Inc. ‐ Software  Incapsulate LLC ‐ Software  Incipio Technologies ‐ Computer Bags and Cases  Incipio Technologies ‐ General Accessories and Telephony  Informatica Corporation ‐ Software  Intel ‐ General Accessories and Telephony  Intel ‐ Storage Products  Intermec ‐ Printers  Intermedix ‐ Software  InterSystems ‐ Software  IOGEAR ‐ Computer Accessories, Digital  Telephones  Ipswitch ‐ Software  Ipswitch ‐ Software  Ivanti ‐ Software  Jabra ‐ General Accessories and Telephony  JAMF Software ‐ Software  JAMF Software ‐ Software  Juniper Networks ‐ General Accessories and Telephony  Kaspersky Labs ‐ Software  Kaspersky Labs ‐ Software  Kensington ‐ Computer Accessories, Digital  Telephones  Kensington ‐ Computer Bags and Cases  Kensington ‐ General Accessories and Telephony  Kingston Technology ‐ Memory  Kingston Technology ‐ Storage Products  Kodak ‐ Cameras  Kofax Image Products ‐ Software  Kronos ‐ Software  Laserfiche ‐ Software  Lawsoft ‐ Software  Lenovo ‐ Batteries  Lenovo ‐ Computer Accessories, Digital  Telephones  Lenovo ‐ Computer Bags and Cases  Lenovo ‐ Computers  Lenovo ‐ Displays and monitors  Lenovo ‐ General Accessories and Telephony     102     Lenovo ‐ Memory  Lenovo ‐ Racks  Lenovo ‐ Storage Products  Lexmark International ‐ Computer Accessories, Digital  Telephones  Lexmark International ‐ General Accessories and Telephony  Lexmark International ‐ Printers  LG Electronics ‐ Displays and monitors  LifeSize ‐ Software  Lightspeed Systems ‐ Software  LockPath, Inc ‐ Software  Logitech ‐ Cameras  Logitech ‐ Computer Accessories, Digital  Telephones  Logmein, Inc. ‐ Software  LogRhythm ‐ Software  Malwarebytes ‐ Software  McAfee ‐ Software  Micro Focus ‐ Software  Micron Technology ‐ Memory  Microsoft ‐ Cameras  Microsoft ‐ Computer Accessories, Digital  Telephones  Microsoft ‐ Computers  Microsoft ‐ Software  Mimecast ‐ Software  Mobile Edge ‐ Computer Bags and Cases  Mobile Edge ‐ General Accessories and Telephony  Modo Labs ‐ Software  MuleSoft ‐ Software  NEC ‐ Computer Accessories, Digital  Telephones  NEC ‐ Displays and monitors  NEC ‐ General Accessories and Telephony  NETGEAR ‐ Computer Accessories, Digital  Telephones  NETGEAR ‐ General Accessories and Telephony  NetMotion Wireless ‐ Software  NetOp ‐ Software  Netscout Systems ‐ Software  NetWrix Corporation ‐ Software  Nimble Storage ‐ Software  Nintex ‐ Software  Nuance Communications ‐ Software  Nutanix ‐ Software  OGIO ‐ Computer Bags and Cases  OKI ‐ Computer Accessories, Digital  Telephones  OKI ‐ Printers  Olympus ‐ General Accessories and Telephony  OpenText ‐ Software  Oracle ‐ Software  OtterBox ‐ General Accessories and Telephony  Overland Storage ‐ Storage Products     103     Palo Alto Networks ‐ Software  Panasonic ‐ Batteries  Panasonic ‐ Computer Accessories, Digital  Telephones  Panasonic ‐ Computers  Panasonic ‐ Displays and monitors  Panasonic ‐ General Accessories and Telephony  Panasonic ‐ Office Supplies  Panduit ‐ Cables  Panduit ‐ General Accessories and Telephony  Panduit ‐ Racks  Pega ‐ Software  Pega Systems ‐ Software  Philips ‐ Displays and monitors  Pitney Bowes ‐ Software  Planar Systems ‐ Displays and monitors  Plantronics ‐ General Accessories and Telephony  PNY Technologies ‐ Memory  Polycom ‐ General Accessories and Telephony  PrinterLogic ‐ Software  Promise Technology ‐ General Accessories and Telephony  Proofpoint ‐ Software  ProPhoenix ‐ Software  QNAP Systems, Inc ‐ General Accessories and Telephony  Qualtrics ‐ Software  Qualys ‐ Software  Quantum ‐ Storage Products  Quest Software ‐ General Accessories and Telephony  Quest Software ‐ Software  Quest Software ‐ Software  Quest Software ‐ Storage Products  Rapid7 ‐ Software  Raritan Computer ‐ Computer Accessories, Digital  Telephones  Red Gate Software ‐ Software  Red Hat ‐ Software  Ricoh ‐ Computer Accessories, Digital  Telephones  Ricoh ‐ Office Supplies  Ricoh ‐ Printers  Rocket Software, Inc. ‐ Software  RSA Security ‐ Software  Ruckus Wireless ‐ General Accessories and Telephony  SailPoint ‐ Software  Salesforce ‐ Software  Salient Corporation ‐ Software  Samsonite ‐ Computer Bags and Cases  Samsung ‐ Batteries  Samsung ‐ Computer Accessories, Digital  Telephones  Samsung ‐ Computers  Samsung ‐ Displays and monitors     104     Samsung ‐ General Accessories and Telephony  Samsung ‐ Memory  Samsung ‐ Office Supplies  Samsung ‐ Storage Products  SanDisk ‐ Memory  SanDisk ‐ Storage Products  SANS Institute ‐ Software  SAP ‐ Software  SAP BusinessObjects ‐ Software  SAS Institute ‐ Software  Seagate ‐ General Accessories and Telephony  Seagate ‐ Storage Products  Sennheiser ‐ General Accessories and Telephony  SentinelOne ‐ Software  Sentry Data Systems ‐ Software  ServiceNow ‐ Software  Sharp ‐ Displays and monitors  SIIG ‐ General Accessories and Telephony  Siteimprove ‐ Software  Snow Software ‐ Software  SolarWinds ‐ Software  SolarWinds ‐ Software  SonicWALL ‐ General Accessories and Telephony  SonicWALL ‐ Software  Sophos ‐ Software  Spatial Data Logic ‐ Software  Spillman Technologies, Inc. ‐ Software  Splunk ‐ Software  StarTech.com ‐ Cables  StarTech.com ‐ Computer Accessories, Digital  Telephones  StarTech.com ‐ General Accessories and Telephony  StarTech.com ‐ Racks  StarTech.com ‐ Storage Products  StorageCraft Technology ‐ Software  SUPER MICRO Computer ‐ General Accessories and Telephony  Swiftreach ‐ Software  Symantec ‐ Software  Symantec ‐ Software  Tableau Software ‐ Software  Tanium ‐ Software  Targus ‐ Computer Bags and Cases  Targus ‐ General Accessories and Telephony  TechSmith ‐ Software  Telerik ‐ Software  Tenable Network Security ‐ Software  Teradata ‐ Software  ThreatTrack Security ‐ Software  Thycotic ‐ Software     105     Toshiba ‐ Computer Accessories, Digital  Telephones  Toshiba ‐ Computers  Toshiba ‐ Storage Products  Total Micro Technologies ‐ Batteries  Total Micro Technologies ‐ General Accessories and Telephony  Transcend Information ‐ Memory  Transcend Information ‐ Storage Products  Trend Micro ‐ Software  Tripp Lite ‐ Batteries  Tripp Lite ‐ Cables  Tripp Lite ‐ Computer Accessories, Digital  Telephones  Tripp Lite ‐ General Accessories and Telephony  Tripp Lite ‐ Racks  TriTech Software Systems ‐ Software  Turbonomic, Inc. ‐ Software  Tyco Electronics ‐ Displays and monitors  Tyler Technologies ‐ Software  Unitrends Software ‐ Software  Urban Factory ‐ General Accessories and Telephony  V7 ‐ General Accessories and Telephony  Vanguard Integrity Professionals ‐ Software  Varonis ‐ Software  Veeam Software ‐ Software  Veeam Software ‐ Software  Veracode ‐ Software  Verbatim ‐ Computer Accessories, Digital  Telephones  Verbatim ‐ Memory  Veritas Technologies LLC ‐ Software  ViewSonic ‐ Computer Accessories, Digital  Telephones  ViewSonic ‐ Displays and monitors  ViewSonic ‐ General Accessories and Telephony  VIZIO ‐ Displays and monitors  VMware ‐ Software  Vmware ‐ Software  WatchGuard Technologies ‐ General Accessories and Telephony  Webroot Software ‐ Software  Western Digital ‐ General Accessories and Telephony  Western Digital ‐ Storage Products  Xerox ‐ Computer Accessories, Digital  Telephones  Xerox ‐ General Accessories and Telephony  Xerox ‐ Office Supplies  Xerox ‐ Printers  Zebra Technologies ‐ Batteries  Zebra Technologies ‐ Cables  Zebra Technologies ‐ Computer Accessories, Digital  Telephones  Zebra Technologies ‐ Printers  Zix Corporation ‐ Software  ZOHO Corporation ‐ Software     106     Zonar Systems ‐ Software  Zscaler ‐ Software            RFP #2018011 Item #Product Product / Group Proposed Discount Manufacturer Name Proposed Discount Manufacturer Name 1) Desktops 4%SHI's Full Catalog of Systems % 2) Notebooks 4%SHI's Full Catalog of Systems % 3) Tablets 4%SHI's Full Catalog of Systems % 4) Servers (1 Processor, 2 Processor, 4+ Processor, Blade, Tower, Unix, Handhelds, etc) 4%SHI's Full Catalog of Systems % 5) Keyboards 4%SHI's Full Catalog of Input Devices % A. Propose a national discount off list price pricing structure. These are the minimum discounts Supplier will offer to Participating Agencies. B. Describe the catalog or index that discounts will be taken. C. Describe any special manufacturer pricing available to Participating Agencies. D. Describe any special large order or large customer pricing or additional discounts available to Participating Agencies. E. Describe any products offered by Supplier that are not captured in the pricing matrix below. Describe how Supplier proposes to price those items. If applicable, you may add additional manufacturers/discounts Group 2 - Input Devices National Pricing Discount For each item listed on the National Priceing Tab, Offerors are encouraged to provide a discount off of a verifiable price list by all manufacturers proposed. For example, Group 2, Item 5 is Keyboards. Offeror(s) may wish to propose more than one manufacturer of keyboards, such as Logitech, Fellows, Belkin, Kensington, Tripplite, etc. Offeror(s) should provide a separate discount for each manufacturer being proposed. Offeror(s) should add additional columns to the pricing page(s) in order to accommodate additional manufacturers' discounts. In addition to indicating your proposed discounts, you must also apply those discounts to the sample items in the City of Mesa Market Basket tab (below). 1)Group 1 - Systems 2) 6) Mice 4%SHI's Full Catalog of Input Devices % 7) Imaging Scanners 4%SHI's Full Catalog of Input Devices % 8) POS Scanners 4%SHI's Full Catalog of Input Devices % 9) Pointing Devices 4%SHI's Full Catalog of Input Devices % 10) Bar Code Readers 4%SHI's Full Catalog of Input Devices % 11) Audio Input 4%SHI's Full Catalog of Input Devices % 12) Input Adapters 4%SHI's Full Catalog of Input Devices % 13) PC and Network Cameras 4%SHI's Full Catalog of Input Devices % 14) Input Cables 4%SHI's Full Catalog of Input Devices % 15) Input Accessories 4%SHI's Full Catalog of Input Devices % 16) Displays 4%SHI's Full Catalog of Output Devices % 17) Printers 4%SHI's Full Catalog of Output Devices % 18) Inkjet Printres 4%SHI's Full Catalog of Output Devices % 19) Inkjet Photo Printers 4%SHI's Full Catalog of Output Devices % 20) Laser Printers 4%SHI's Full Catalog of Output Devices % 21) Label Printers 4%SHI's Full Catalog of Output Devices % 3) Group 2 - Input Devices2) Group 3 - Output Devices 22) Dot Matrix Printers 4%SHI's Full Catalog of Output Devices % 23) Multi-Function Printers 4%SHI's Full Catalog of Output Devices % 24) Wide Format Printers 4%SHI's Full Catalog of Output Devices % 25) Multi-Function Inkjet Printers 4%SHI's Full Catalog of Output Devices % 26) Wide Format Printers 4%SHI's Full Catalog of Output Devices % 27) Fax Machine Printers 4%SHI's Full Catalog of Output Devices % 28) Printer Accessories 4%SHI's Full Catalog of Output Devices % 29) Projectors 4%SHI's Full Catalog of Output Devices % 30) Projector Accessories 4%SHI's Full Catalog of Output Devices % 31) Audio Input 4%SHI's Full Catalog of Output Devices % 32) Video Cards 4%SHI's Full Catalog of Output Devices % 33) Sound Cards 4%SHI's Full Catalog of Output Devices % 34) Output Accessories 4%SHI's Full Catalog of Output Devices % 35) Printer Consumables 4%SHI's Full Catalog of Output Devices % 36) Desktop 4%SHI's Full Catalog of Memory % 37) Flash 4%SHI's Full Catalog of Memory % 3) 4)Group 4 - Memory Group 3 - Output Devices 38) Networking 4%SHI's Full Catalog of Memory % 39) Notebook 4%SHI's Full Catalog of Memory % 40) Printer / Fax 4%SHI's Full Catalog of Memory % 41) Server 4%SHI's Full Catalog of Memory % 42) Adapters Fibre Channel 4%SHI's Full Catalog of Storage Devices % 43) Adapters FireWire / USB 4%SHI's Full Catalog of Storage Devices % 44) Adapters IDE/ATA/SATA 4%SHI's Full Catalog of Storage Devices % 45) Adapters RAID 4%SHI's Full Catalog of Storage Devices % 46) Adapters SCSI 4%SHI's Full Catalog of Storage Devices % 47) Bridges & Routers 4%SHI's Full Catalog of Storage Devices % 48) Disk Arrays 4%SHI's Full Catalog of Storage Devices % 49) Disk Arrays JBOD 4%SHI's Full Catalog of Storage Devices % 50) Drives Magneto-Optical 4%SHI's Full Catalog of Storage Devices % 51) Drives Removable Disks 4%SHI's Full Catalog of Storage Devices % 52) Fiber Channel Switches 4%SHI's Full Catalog of Storage Devices % 53) Hard Disks - External 4%SHI's Full Catalog of Storage Devices % Group 5 - Storage Devices 4) 5) Group 4 - Memory 54) Hard Disks - Fibre Channel 4%SHI's Full Catalog of Storage Devices % 55) Hard Disks - IDE/ATA/S 4%SHI's Full Catalog of Storage Devices % 56) Hard Disks - Notebook 4%SHI's Full Catalog of Storage Devices % 57) Hard Disks - SCSI 4%SHI's Full Catalog of Storage Devices % 58) Networking Accessories 4%SHI's Full Catalog of Storage Devices % 59) Optical Drives - CD-ROM 4%SHI's Full Catalog of Storage Devices % 60) Optical Drives - CD-RW 4%SHI's Full Catalog of Storage Devices % 61) Optical Drives - DVD-CD 4%SHI's Full Catalog of Storage Devices % 62) Optical Drives - DVD-RW 4%SHI's Full Catalog of Storage Devices % 63) Storage Accessories 4%SHI's Full Catalog of Storage Devices % 64) Storage - NAS 4%SHI's Full Catalog of Storage Devices % 65) Storage - SAN 4%SHI's Full Catalog of Storage Devices % 66) Tape Autoloaders -AIT 4%SHI's Full Catalog of Storage Devices % 67) Tape Autoloaders - DAT 4%SHI's Full Catalog of Storage Devices % 68) Tape Autoloaders - DLT 4%SHI's Full Catalog of Storage Devices % 69) Tape Autoloaders - LTO 4%SHI's Full Catalog of Storage Devices % Group 5 - Storage Devices5) 70) Tape Drives - 4mm 4%SHI's Full Catalog of Storage Devices % 71) Tape Drives - 8mm/VXA 4%SHI's Full Catalog of Storage Devices % 72) Tape Drives - AIT 4%SHI's Full Catalog of Storage Devices % 73) Tape Drives - DAT 4%SHI's Full Catalog of Storage Devices % 74) Tape Drives - DLT 4%SHI's Full Catalog of Storage Devices % 75) Tape Drives - LTO/Ultrium 4%SHI's Full Catalog of Storage Devices % 76) Tape Drives SDLT 4%SHI's Full Catalog of Storage Devices % 77) Tape Drives - Travan 4%SHI's Full Catalog of Storage Devices % 78) 10/100 Hubs & Switches 4%SHI's Full Catalog of Network Equipment % 79) Bridges & Routers 4%SHI's Full Catalog of Network Equipment % 80) Gigabit Hubs & Swtiches 4%SHI's Full Catalog of Network Equipment % 81) Concentrators & Multiplexers 4%SHI's Full Catalog of Network Equipment % 82) Hardware Firewalls 4%SHI's Full Catalog of Network Equipment % 83) Intrusion Detection 4%SHI's Full Catalog of Network Equipment % 84) KVM 4%SHI's Full Catalog of Network Equipment % 85) Modems 4%SHI's Full Catalog of Network Equipment % Group 6 - Network Equipment6) Group 5 - Storage Devices5) 86) Network Test Equipment 4%SHI's Full Catalog of Network Equipment % 87) Network Adapters 4%SHI's Full Catalog of Network Equipment % 88) Network Cables 4%SHI's Full Catalog of Network Equipment % 89) Network Accessories 4%SHI's Full Catalog of Network Equipment % 90) Repeaters & Transcievers 4%SHI's Full Catalog of Network Equipment % 91) Wireless LAN Accessories 4%SHI's Full Catalog of Network Equipment % 92) Token Authentication 4%SHI's Full Catalog of Network Equipment % 93) 10G Fiber Optic Transceivers 4%SHI's Full Catalog of Network Equipment % 94) 1G Fiber Optic Transceivers 4%SHI's Full Catalog of Network Equipment % 95) Licensing Packages (e.g. Microsoft) 4%SHI's Full Catalog of Software % 96) Licensing Backup 4%SHI's Full Catalog of Software % 97) Licensing Barcode/OC 4%SHI's Full Catalog of Software % 98) Licensing Business Application 4%SHI's Full Catalog of Software % 99) Licensing CAD/CAM 4%SHI's Full Catalog of Software % 100) Licensing - Cloning 4%SHI's Full Catalog of Software % 101) Licensing - Computer Services 4%SHI's Full Catalog of Software % Group 6 - Network Equipment6) Group 7 - Software7) 102) Licensince - Database 4%SHI's Full Catalog of Software % 103) Licensing - Development 4%SHI's Full Catalog of Software % 104) Licensing - Entertainment 4%SHI's Full Catalog of Software % 105) Licensing - Financial 4%SHI's Full Catalog of Software % 106) Licensing - Flow Chart 4%SHI's Full Catalog of Software % 107) Licensing - Graphic Design 4%SHI's Full Catalog of Software % 108) Licensing - Handheld 4%SHI's Full Catalog of Software % 109) Licensing - Network OS 4%SHI's Full Catalog of Software % 110) Licensing - OS 4%SHI's Full Catalog of Software % 111) Licensing - Personal Organization 4%SHI's Full Catalog of Software % 112) Licensing - Presentation 4%SHI's Full Catalog of Software % 113) Licensing - Reference 4%SHI's Full Catalog of Software % 114) Licensing - Report Analysis 4%SHI's Full Catalog of Software % 115) Licensing - Spreadhseet 4%SHI's Full Catalog of Software % 116) Licensing - Utilities 4%SHI's Full Catalog of Software % 117) Licensing - Warranties 4%SHI's Full Catalog of Software % Group 7 - Software7) 118) Licensing - Web Development 4%SHI's Full Catalog of Software % 119) Licensing - Word Processing 4%SHI's Full Catalog of Software % 120) Software - Backup 4%SHI's Full Catalog of Software % 121) Software - Barcode / OCR 4%SHI's Full Catalog of Software % 122) Software - Business Application 4%SHI's Full Catalog of Software % 123) Software - CAD/CAM 4%SHI's Full Catalog of Software % 124) Software - Cloning 4%SHI's Full Catalog of Software % 125) Software - Computer Services 4%SHI's Full Catalog of Software % 126) Software - Database 4%SHI's Full Catalog of Software % 127) Software - Development 4%SHI's Full Catalog of Software % 128) Software - Entertainment 4%SHI's Full Catalog of Software % 129) Software - Financial 4%SHI's Full Catalog of Software % 130) Software - Flow Chart 4%SHI's Full Catalog of Software % 131) Software - Graphic Design 4%SHI's Full Catalog of Software % 132) Software - Handheld 4%SHI's Full Catalog of Software % 133) Software - OS 4%SHI's Full Catalog of Software % Group 7 - Software7) 134) Software - Personal Organization 4%SHI's Full Catalog of Software % 135) Software - Presentation 4%SHI's Full Catalog of Software % 136) Software - Reference 4%SHI's Full Catalog of Software % 137) Software - Report Analysis 4%SHI's Full Catalog of Software % 138) Software - Spreadsheet 4%SHI's Full Catalog of Software % 139) Software - Utilities 4%SHI's Full Catalog of Software % 140) Software - Warranties 4%SHI's Full Catalog of Software % 141) Software - Web Development 4%SHI's Full Catalog of Software % 142) Software - Word Processing 4%SHI's Full Catalog of Software % 143) Media - 4mm tape 4%SHI's Full Catalog of Media Supplies % 144) Media - AIT tape 4%SHI's Full Catalog of Media Supplies % 145) Media - DAT tape 4%SHI's Full Catalog of Media Supplies % 146) Media - DLT tape 4%SHI's Full Catalog of Media Supplies % 147) Media LTO / Ultrium tape drive 4%SHI's Full Catalog of Media Supplies % 148) Media - Magneto - Optical 4%SHI's Full Catalog of Media Supplies % 149) Media - Optical 4%SHI's Full Catalog of Media Supplies % Group 7 - Software Group 8 - Media Supplies8) 7) 150) Media - SLR tape 4%SHI's Full Catalog of Media Supplies % 151) Media - Travan tape 4%SHI's Full Catalog of Media Supplies % 152) Media - VXA tape 4%SHI's Full Catalog of Media Supplies % 153) Media - zip 4%SHI's Full Catalog of Media Supplies % 154) IP phones 4%SHI's Full Catalog of Collobration and IP Telephony % 155) Video conferencing products 4%SHI's Full Catalog of Collobration and IP Telephony % 156) Voice gateways / servers 4%SHI's Full Catalog of Collobration and IP Telephony % 157) Headsets 4%SHI's Full Catalog of Collobration and IP Telephony % 158) Audo conferencing products 4%SHI's Full Catalog of Collobration and IP Telephony % 159) Analog phones 4%SHI's Full Catalog of Collobration and IP Telephony % 160) Accessories 4%SHI's Full Catalog of Collobration and IP Telephony % 161) Advanced Integration 4%SHI's Full Catalog of Other % 162) Asset Disposal 4%SHI's Full Catalog of Other % Group 9 - Collaboration & IP Telephony9) Group 8 - Media Supplies8) Group 10 - Other10) 163) Asset Management 4%SHI's Full Catalog of Other % 164) Cables 4%SHI's Full Catalog of Other % 165) Cables - custom 4%SHI's Full Catalog of Other % 166) Cables - printer 4%SHI's Full Catalog of Other % 167) Complex warranties 4%SHI's Full Catalog of Other % 168) Desktop Accessories 4%SHI's Full Catalog of Other % 169) Display Accessories 4%SHI's Full Catalog of Other % 170) Electronic Services 4%SHI's Full Catalog of Other % 171) Handheld Accessories 4%SHI's Full Catalog of Other % 172) Imaging Accessories 4%SHI's Full Catalog of Other % 173) Imaging - Camcorders 4%SHI's Full Catalog of Other % 174) Imaging - Digital Cameras 4%SHI's Full Catalog of Other % 175) Intrenal Lab Service 4%SHI's Full Catalog of Other % 176) Lab fees 4%SHI's Full Catalog of Other % 177) Managed Services 4%SHI's Full Catalog of Other % 178) Miscellaneous solutions 4%SHI's Full Catalog of Other % Group 10 - Other10) 179) Mounting hardware for vehicles 4%SHI's Full Catalog of Other % 180) Networking Warranties 4%SHI's Full Catalog of Other % 181) Notebook Accessories 4%SHI's Full Catalog of Other % 182) Notebook Batteries 4%SHI's Full Catalog of Other % 183) PC Lab order services 4%SHI's Full Catalog of Other % 184) POS Accessories 4%SHI's Full Catalog of Other % 185) POS Displays 4%SHI's Full Catalog of Other % 186) Power Accessories 4%SHI's Full Catalog of Other % 187) Power Surge Protection 4%SHI's Full Catalog of Other % 188) Power UPS 4%SHI's Full Catalog of Other % 189) Server Accessories 4%SHI's Full Catalog of Other % 190) Service Charge 4%SHI's Full Catalog of Other % 191) System Components 4%SHI's Full Catalog of Other % 192) Training Courses 4%SHI's Full Catalog of Other % 193) Training Reference Manuals 4%SHI's Full Catalog of Other % 194) Warranties - Electronic 4%SHI's Full Catalog of Other % Group 10 - Other10) 195) iPAD / Tablet Stylus 4%SHI's Full Catalog of Other % 196) Mouse / Wrist Pads 4%SHI's Full Catalog of Other % 197) Security Locks and Hardware 4%SHI's Full Catalog of Other % 198) Tools 4%SHI's Full Catalog of Other % 199) Document Scanner Accessories 4%SHI's Full Catalog of Other % 200) Flatbed Scanners 4%SHI's Full Catalog of Other % 201) Mobile Scanners 4%SHI's Full Catalog of Other % 202) Network Scanners 4%SHI's Full Catalog of Other % 203) Sheetfed Scanners 4%SHI's Full Catalog of Other % 204) Wide Format Scanners 4%SHI's Full Catalog of Other % 205) Workgroup / Department Scanner 4%SHI's Full Catalog of Other % 206) Build to Order Desktops 4%SHI's Full Catalog of Other % 207) Nettop 4%SHI's Full Catalog of Other % 208) Point of Sale 4%SHI's Full Catalog of Other % 209) Ultra Small Form Factor 4%SHI's Full Catalog of Other % 210) Apple / Mac Memory Upgrades 4%SHI's Full Catalog of Other % Group 10 - Other10) 211) Chips / SIMMs/SIPPs / ROMs 4%SHI's Full Catalog of Other % 212) Computer Cases 4%SHI's Full Catalog of Other % 213) CPUs / Fans 4%SHI's Full Catalog of Other % 214) Membory Accessories 4%SHI's Full Catalog of Other % 215) Motherboards / Chassis 4%SHI's Full Catalog of Other % 216) 1 - 2 port Serial Boards 4%SHI's Full Catalog of Other % 217) 3+ port Serial Boards 4%SHI's Full Catalog of Other % 218) Console Server 4%SHI's Full Catalog of Other % 219) Device Server 4%SHI's Full Catalog of Other % 220) Terminal Server 4%SHI's Full Catalog of Other % 221) Content Management 4%SHI's Full Catalog of Other % 222) Firewall / VPN Applicances 4%SHI's Full Catalog of Other % 223) Multifunction Security Appliances 4%SHI's Full Catalog of Other % 224) Network Camera Accessories 4%SHI's Full Catalog of Other % 225) Network Cameras 4%SHI's Full Catalog of Other % 226) Physical/Environmental Security 4%SHI's Full Catalog of Other % Group 10 - Other10) 227) Security Applicance Accessories 4%SHI's Full Catalog of Other % 228) Security Tokens 4%SHI's Full Catalog of Other % 229) Unified Threat Management 4%SHI's Full Catalog of Other % 230) 2-way Radios / Walkie Talkies 4%SHI's Full Catalog of Other % 231) Apple Notebooks 4%SHI's Full Catalog of Other % 232) Convertible PCs / Slate PCs / iPAD 4%SHI's Full Catalog of Other % 233) iPAD 4%SHI's Full Catalog of Other % 234) Slate Tablet Computers 4%SHI's Full Catalog of Other % 235) GPS / PDA 4%SHI's Full Catalog of Other % 236) Wireless Communication Devices 4%SHI's Full Catalog of Other % 237) Batteries 4%SHI's Full Catalog of Other % 238) Power Supplies / Adapters 4%SHI's Full Catalog of Other % 239) Rackmountain Equipment 4%SHI's Full Catalog of Other % 240) Remote Power Management 4%SHI's Full Catalog of Other % 241) Surge Suppressors 4%SHI's Full Catalog of Other % 242) UPS / Battery Backup 4%SHI's Full Catalog of Other % Group 10 - Other10) 243) 14" & smaller LCD Display 4%SHI's Full Catalog of Other % 244) 15-19" LCD Display 4%SHI's Full Catalog of Other % 245) 15-19" Wide LCD Display 4%SHI's Full Catalog of Other % 246) 15-19" Wide LED Display 4%SHI's Full Catalog of Other % 247) 20-30" LCD Display 4%SHI's Full Catalog of Other % 248) 20-30" Wide LCD Display 4%SHI's Full Catalog of Other % 249) 20-30" Wide LED Display 4%SHI's Full Catalog of Other % 250) PCoIP and Zero Client Displays 4%SHI's Full Catalog of Other % 251) Arm Mounts 4%SHI's Full Catalog of Other % 252) Ceiling Mounts 4%SHI's Full Catalog of Other % 253) Combo Mounts 4%SHI's Full Catalog of Other % 254) Desktop Stands / Risers 4%SHI's Full Catalog of Other % 255) Flat Wlal Mounts 4%SHI's Full Catalog of Other % 256) Mount Accessories 4%SHI's Full Catalog of Other % 257) Pole Display 4%SHI's Full Catalog of Other % 258) Stands / Carts / Feet 4%SHI's Full Catalog of Other % Group 10 - Other10) 259) Tilt Wall Mounts 4%SHI's Full Catalog of Other % 260) C-Cure Products 4%SHI's Full Catalog of Other % 261) Istar Products 4%SHI's Full Catalog of Other % SERVICE STANDARD HOURLY RATE DISCOUNT FROM STANDARD RATE Design and Analysis 125.00$ 4% Configuration 165.00$ 4% Implementation 185.00$ 4% Installation 185.00$ 4% Training 99.00$ 4% Maintenance & Support 99.00$ 4% Additional Services Offered (please list any additional services offered and applicable discount / fees on a separate page and attach)% Respondents please add Respondents please add Respondents please add Respondents please add Respondents please add Respondents please add Respondents please add SHI will work with local partners when possible to insure the City is getting the best value. Prices for Services will vary depending on the local partners. The rates below are an average. 12) Group 12 - Additional Products/Services Not Identified Group 11 - Services11) Group 10 - Other10) All discounts articulated here represent the minimum discounts off SHI Advertised List Price; actual discounts may be significantly higher. The comprehensive SHI offering for National IPA consists of all hardware, software, and services available to our customers in the public sector marketplace. The discount structure offered to National IPA is based on our Advertised Price List which can be located on www.shi.com. In many cases, SHI Advertised List Price already reflects a substantial discount off of Manufacturer Published List prices. Given the breadth of manufacturers and products that SHI offers, there will be many opportunities for SHI to secure additional discounts for eligible contract users. We work to provide your contract users with the most advantageous pricing available, above and beyond the minimum discounts offered, whenever possible. SHI prides ourselves on being honest and transparent with our customers especially when it comes to pricing. We base our discount structure on SHI Advertised Price as this is a verifiable source. We do not inflate this Advertised Price for RFPs in order to make our discounts appear larger. Other vendors may use MSRP or Publisher List price, which can be unreliable as a pricelist may not exist for every product, a pricelist can change from day to day, and a pricelist can be inconsistent depending on where you source the information from. When a vendor manipulates contract language in this manner or uses a loose definition of cost, it results in an increase in profit for them and higher prices for customers. If awarded, SHI is willing to provide complete transparency over the life of the contract as it relates to our costs and what we charge National IPA customers. All discounts articulated here represent the minimum discounts off SHI Advertised List Price; actual discounts may be significantly higher. The comprehensive SHI offering for National IPA consists of all hardware, software, and services available to our customers in the public sector marketplace. The discount structure offered to National IPA is based on our Advertised Price List which can be located on www.shi.com. In many cases, SHI Advertised List Price already reflects a substantial discount off of Manufacturer Published List prices. Given the breadth of manufacturers and products that SHI offers, there will be many opportunities for SHI to secure additional discounts for eligible contract users. We work to provide your contract users with the most advantageous pricing available, above and beyond the minimum discounts offered, whenever possible. SHI prides ourselves on being honest and transparent with our customers especially when it comes to pricing. We base our discount structure on SHI Advertised Price as this is a verifiable source. We do not inflate this Advertised Price for RFPs in order to make our discounts appear larger. Other vendors may use MSRP or Publisher List price, which can be unreliable as a pricelist may not exist for every product, a pricelist can change from day to day, and a pricelist can be inconsistent depending on where you source the information from. When a vendor manipulates contract language in this manner or uses a loose definition of cost, it results in an increase in profit for them and higher prices for customers. If awarded, SHI is willing to provide complete transparency over the life of the contract as it relates to our costs and what we charge National IPA customers. Item Description Item Number Unit of Measure % Off Catalog Discount (As identifed on National Pricing Tab) MSRP Price Extended Price (MSRP - % Off Catalog) HP EliteBook x360 1030 G2 (Energy Star)1BS95UT#ABA EA 4.00% $ 1,339.00 $ 1,285.44 10.5-inch Apple iPad Pro Wi-Fi + Cellular 64GB - Space Gray MQEY2LL/A EA 4.00% $ 825.00 $ 792.00 Dell OptiPlex 7050 Small Form Factor S028O7050SFFUSR 83F9F EA 4.00%$1,055.45 $ 1,013.23 Dell Latitude 5480 Laptop S022L548014USR 4C99R EA 4.00%$1,143.91 $ 1,098.16 Samsung Galaxy Tab E - Tablet - Android 6.0 (Marshmallow) - 16GB - 8" - 4G SM-T377VZKAVZW EA 4.00% $ 210.00 $ 201.60 Logitech MX800 Wireless Keyboard & Mouse 920-006237 EA 4.00% $ 141.00 $ 135.36 Microsoft Designer Bluetooth Desktop Keyboard and Mouse set 7N9-00001 EA 4.00% $ 83.00 $ 79.68 Microsoft Wireless Comfort Desktop 5050 Keyboard and Mouse set PP4-00001 EA 4.00% $ 58.00 $ 55.68 Logitech MK120 USB Wired Keyboard/Mouse set 920-002565 EA 4.00% $ 14.00 $ 13.44 Kensington Pro Fit Keyboard and Mouse set K72324US EA 4.00% $ 32.00 $ 30.72 HP 27ER 27 Inch Display T3M88AA#ABA EA 4.00%$241.63 $ 231.96 HP DesignJet T830 36-in Multifunction Printer F9A30A#B1K EA 4.00% $ 6,907.00 $ 6,630.72 Dell UltraSharp 27" 4K Monitor U2718Q EA 4.00% $ 643.00 $ 617.28 InFocus IN1116 - DLP Projector - Portable - 3D IN1116 EA 4.00% $ 887.00 $ 851.52 PNY NVIDIA NVS 810 Graphics Card - 2GPU's - NVS 810 - 4GB VCNVS810DVI-PB EA 4.00% $ 704.00 $ 675.84 Kingston DDR4-32 GB- DIMM 288-pin KTH-PL424/32G EA 4.00% $ 410.00 $ 393.60 Cisco DDR4-32 GB- DIMM 288-pin UCS-MR-1X322RV-A EA 4.00%$710.48 $ 682.06 Cisco DDR3L-32 GB- LRDIMM 240-pin UCS-ML-1X324RY-A EA 4.00%$821.34 $ 788.49 Kingston DDR3-64 GB- DIMM 240-pin KVR16R11D4K4/64 CT64G4LFQ424A EA 4.00%$978.90 $ 939.75 Proline - DDR - 1GB - DIMM 184-pin ASA5510-MEM-1GBCDW EA 4.00% $ 237.51 $ 228.01 Western Digital Red 6 TB internal HD WD60EFRX EA 4.00% $ 261.00 $ 250.56 Seagate Video 3.5 HDD ST4000VM000 4TB ST40000VM000 ST4000VX007 EA 4.00%$134.30 $ 128.93 Dell PowerVault RD1000 RDX USB external RD1000 EA 4.00% $ 162.00 $ 155.52 Samsung 850 EVO 250 GB Internal SSD MZ-75E250B/AM EA 4.00% $ 113.00 $ 108.48 SanDisk Cruzer Blade - USB flash drive 8 GB SDCZ50-008G-B35 EA 4.00% $ 6.00 $ 5.76 Cisco Nexus 7000 Series - Switch - Rack Mountable - With Fan Tray N7K-C7010=EA 4.00% $ 17,700.00 $ 16,992.00 Extreme Networks C-Series C5 C5G124-24P2 Switch 24 ports Managed C5G124-24P2 EA 4.00%$4,895.06 $ 4,699.26 Juniper EX4200 24F - Switch - Managed EX4200-24F-TAA EA 4.00%$10,758.00 $ 10,327.68 Ruckus ZoneFlex R600 - Wireless Access Point 901-R600-US00 EA 4.00% $ 811.00 $ 778.56 Juniper EX 2200 24P switch managed EX2200-24P-4G EA 4.00% $ 1,433.00 $ 1,375.68 Adobe Acrobat Pro 2017 - License - 1User 65280374AF01A00 EA 4.00%$407.97 $ 391.65 Adobe Acrobat Standard 2017 - License - 1 User 65280416AD01A00 EA 4.00% $ 310.00 $ 297.60 Microsoft Project Professional 2016 - Box Pack - 1PC H30-05451 EA 4.00% $ 1,021.00 $ 980.16 Microsoft Windows 10 Pro License 1User FQC-08930 EA 4.00% $ 157.00 $ 150.72 Nuance Dragon Naturally Speaking Premium Box Pack Version (13) 1User K609A-G00-13.0 EA 4.00% $ 195.00 $ 187.20 Verbatim DataLifePlus DVD-R Media 50 Pack 95078 PK 4.00% $ 19.00 $ 18.24 Memorex DVD+R x 25 Storage media 05618 05638 PK 4.00%$18.10 $ 17.38 Kingston Data Traveler SE9 G2 16GB USB 3.0 DTSE9G2/16GB EA 4.00% $ 15.00 $ 14.40 Apricorn Aegis Secure Key 3.0 - USB Flash Drive - 120GB ASK3-120GB EA 4.00% $ 236.00 $ 226.56 Optical Quantum White Inkjet Hub Printable BD-R OQBDRDL06WIPH-25 EA 4.00%$72.36 $ 69.47 OpenScape Desk Phone IP 55G SIPL30250-F600-C281 EA 4.00%$528.50 $ 507.36 MediaTrix C711 8 FXS Gateway C711-01-MX-D2000-K-000 EA 4.00%$371.20 $ 356.35 Avaya Business Series Terminal T7208 - Digital Phone NT8B26AAMAE6 EA 4.00%#N/A #N/A APC1500VA SMT1500 EA 4.00% $ 524.00 $ 503.04 APC Smart-UPS X 3000VA Rack UPS SMX3000RMLV2U EA 4.00% $ 1,547.00 $ 1,485.12 AirMagnet Survey Pro/Planner and Spectrum XT Bundle - License and Media (1 license)AM/A1580 EA 4.00% $ 5,610.00 $ 5,385.60 Total Price $ 62,157.82 DELIVERY: See Specifications and/or Mesa Standard Terms and Conditions. Vendor Name __SHI International Corp___ This page intentionally left blank. EXHIBIT B INSURANCE REQUIREMENTS FOR SERVICE CONTRACTS Insurance The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Contractor shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85. The City shall be named as an insured under the Contractor’s Commercial General Liability insurance policy with respect to the work performed for the City using ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Minimum Amounts of Insurance Contractor shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products-completed operations aggregate limit. EXHIBIT B (Continued ) C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Contractor’s insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor’s insurance and shall not contribute with it. 2. The Contractor’s insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the contractor and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all required insurance policies. The Contractor’s Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer’s liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. F. Subcontractors Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Contractor. Product Matrix Commvault Veritas Rubrik VEEAM Hypervisor Number of Hypervisors Supported 11 2 2 2 Windows Windows Support Yes Yes Yes Yes UNIX/Linux UNIX/Linux Support Yes Yes No No Multi-Cloud Is there native support for the ability to use two (or more) cloud vendors in the same manner as on-prem storage? Yes Limited Limited Limited Role Based Can the product use "role based" authentication for administration? Yes Yes No Limited Cross Hypervisor Is there native support for the ability to use two (or more) Hypervisors, and move between them in the same manner as physical compute? Yes No No No Reporting Can the product generate enterprise reports?Built-In Built-In Built-In Separate Application Snapshot Arrays How many arrays can the product manage snapshots from? 250 3 1 3 Global DeDupe Can the product globally de- dupe the data under management? Yes 96TB Max Yes Separate Application Copy Management Can the product manage multiple copies of data under management? Yes Separate Product Yes No Features Product Matrix Applications What enterprise application levels are supported by the product? Broad Support Limited Limited MS and Oracle Language Support Does the product support multiple languages?Yes Yes English Only Yes Archive Can the product manage data as an archive?Yes Separate Product Limited No eDiscovery Can the product produce e- Discovery related information and legal hold against the data managed in the archive? Yes Separate Product No No Endpoint Can the product manage the protection of endpoints (end user compute devices)? Yes Separate Product No No City of Kent WA Pricing Proposal Quotation #: 15199054 Created On: Apr-18-2018 Valid Until: Jul-31-2018 lnside Account Manager Jon Franklin 290 Davidson Ave Somerset, NJ 08873 Phone: 800.477-6479 Fax: 800477-6479 Email: Jon_Franklin@shi.com Oty Your Price Total James Endicott 220 4Th Ave S Kent, WA 98032 United States Phone: (253) 856 4620 Fax: Email: jendicott@kentwa.gov All Prices are in US Dollar (USD) Product Commvault 96 TB Raw Capacity Hyper Converged lnfrastructure for Existing lnstalls: Upfront Payment, 3 Year Subscription CommVault Systems - Part#: CN-CV-E-1396-31 Contract Name: NASPO ValuePoint - Software VAR Contract #: ADSPOl 6-1 30651 Subcontract #: 0601 6 Note: Commcell Serial Number F964F 4 $50,756.69 $203,026.76 *Tax $20,302.68 Total $223,329.44 *Tax is estimated. lnvoice will include the full and final tax due. Additional Comments Please Note: Commvault has a zero returns policy The Products offered under this proposal are subject to the SHI Retum Policy posted at vrww.shi.com/returnpolicv. unless there is an existing agreement between SHI and the Customer. This page intentionally left blank. Agenda Item: Consent Calendar – 8F_ TO: City Council DATE: July 3, 2018 SUBJECT: Contract with Rimini Street, Inc – Authorize SUMMARY: Rimini Street, Inc. will provide JD Edwards technical support, maintenance and related professional services for our ERP/Enterprise Resource Planning system, as well as Oracle Database support for KIVA, the City’s Permit Management system for a 5-year term at a total contract cost of $517,655. Rimini Street will provide direct support for JDE upgrades, including but not limited to annual regulatory and compliance federal mandates, and provide best-in-class professional services. Staff is recommending this change in service providers to support both a substantial overall cost savings while at the same time facilitating the ability for the City to work through one vendor for most if not all JD Edwards and Oracle support needs. EXHIBITS: A)Support, Maintenance and Consulting Services Agreement B)Vendor Proposals RECOMMENDED BY: Operations Committee YEA: Boyce, Higgins, Thomas NAY: BUDGET IMPACTS: Funding for these services will be covered by previously approved related line items from the City’s adopted 2017 -2018 Capital Biennial Budget. 2017 2018 Product Name DLT Total (5 yr.) Rimini Street Total (5 yr.) Net Savings Oracle Database $ 61,404 $ 307,022 $ 32,032 $ 160,160 $ 146,862 Oracle 8 Universal Power Unit $ 7,825 $ 39,123 $ 0 $ 0 $ 39,123 Oracle JD Edwards Enterprise One $ 130,911 $ 654,556 $ 71,499 $ 357,495 $ 297,061 $ 1,000,701 $ 517,655 $ 483,047 STRATEGIC PLAN GOAL(S): ☒ Innovative Government – Delivering outstanding customer service, developing leaders, and fostering innovation. ☒ Evolving Infrastructure – Connecting people and places through strategic investments in physical and technological infrastructure. MOTION. Authorize the Mayor to sign all necessary documents to enter into a 5-year agreement with Rimini Street, Inc. to provide technical support, maintenance, and professional services, in a total amount not to exceed $517,655, and subject to final terms and conditions acceptable to the Information Technology Director and the City Attorney. This page intentionally left blank. SUPPORT, MAINTENANCE, AND CONSULTANTING SERVICES AGREEMENT - 1 AGREEMENT FOR SUPPORT, MAINTENANCE, AND CONSULTING SERVICES between the City of Kent and Rimini Street, Inc. THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and Rimini Street, Inc. organized under the laws of the State of Delaware, located and doing business at 3993 Howard Huges Parkway, Suite 500, Las Vegas, NV 89169 (hereinafter the "Consultant"). I. DESCRIPTION OF WORK. Consultant shall perform the following services for the City in accordance with the following described plans and/or specifications: Technological support, maintenance, and consulting services for the City's J.D. Edwards, Oracle, and other systems as may be requested, in accordance with Statements of Work ("SOW") that will direct and control Consultant's work under this Agreement, which SOWs the parties may periodically negotiate and adopt throughout the term of this Agreement. Once mutually agreed to and signed by an authorized representative of each party to this Agreement, the Statements of Work shall become a part of this Agreement. While the Statements of Work will describe the work to be performed by Consultant, they shall not otherwise alter this Agreement's terms and conditions, including the compensation to paid, the applicable contract term, or other substantive and material terms of this Agreement. In the event any Statement of Work includes contractual terms that are new, different, or otherwise do not directly establish work tasks the Consultant will perform, the parties intend that those terms shall not apply and the terms of this Agreement will instead control. Therefore, should a Statement of Work result in the need for additional compensation to be paid under this Agreement outside of that contemplated for in Section III, a mutually negotiated amendment to this Agreement will be required before any additional payment will be due and owing by the City. Attached and incorproated as Exhibits A and B are the first two Statements of Work that will guide Consultant's work under this Agreement. Exhibit A pertains to support, maintenance, and consulting services for the City's J.D. Edwards system, and Exhibit B pertains to support, maintenance, and consulting services for the City's Oracle system. Consultant further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. II.TERM. This Agreement shall remain effective through August 31, 2023. The parties agree that work will begin on the tasks described in Section I above immediately on the effective date of this Agreement, and the Consultant shall complete the tasks within the timelines provided for within the adopted SOWs and this Agreement. III.COMPENSATION. SUPPORT, MAINTENANCE, AND CONSULTANTING SERVICES AGREEMENT - 2 A. The total compensation paid for the services described in this Agreement throughout its term shall not exceed $817,649, including applicable Washington State sales tax. This is the maximum amount to be paid under this Agreement for the work described in Section I above, and shall not be exceeded without the prior written authorization of the City in the form of a negotiated and executed amendment to this agreement. B. The Consultant will be paid a flat fee for all support and maintenance services provided for under the SOWs in accordance with the following schedule. Additional consulting services for system implementation, customization services, or other ad hoc consulting services not included within Consultant’s support and maintenance services, will be charged and paid on a time and materials basis. The following rates shall apply to all work performed under this Agreement: 1. SOW #1 – J.D. Edwards – Maintenance and Support: An annual support and maintenance fee will be charged at a flat rate of $64,999, plus tax. This annual support and maintenance fee will remain fixed throughout the term of this Agreement. The total 5-year cost for these services, including tax, is $357,494.50. 2. SOW #2 – Oracle – Maintenance and Support: An annual support and maintenance fee will be charged at a flat rate of $29,120, plus tax. This annual support and maintenance fee will remain fixed throughout the term of this Agreement. The total 5-year cost for these services, including tax, is $160,154.50. Total combined 5-year cost: $517,649.00 C. Upon the effective date of this Agreement, the Consultant shall issue the City an invoice for the first year’s annual maintenance and support fees of the City’s J.D. Edwards and Oracle systems ($71,498.90 and $32,030.90, respectively). Thereafter, Consultant shall invoice the City annually for that year’s support and maintenance fees, at least 60 days before support and maintenance service term begins for that new year. D. Consultant shall invoice the City monthly for ad hoc consulting work performed, and a final bill upon completion of all services described in this Agreement. E. Upon its receipt of a proper invoice, the City shall provide payment within forty-five (45) days. If the City objects to all or any portion of an invoice, it shall notify the Consultant and reserves the option to only pay that portion of the invoice not in dispute. In that event, the parties will immediately make every effort to settle the disputed portion. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor- Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: A. The Consultant has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. B. The Consultant maintains and pays for its own place of business from which Consultant’s services under this Agreement will be performed. C. The Consultant has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained Consultant’s services, or the Consultant is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Consultant is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. SUPPORT, MAINTENANCE, AND CONSULTANTING SERVICES AGREEMENT - 3 E. The Consultant has registered its business and established an account with the state Department of Revenue and other state agencies as may be required by Consultant’s business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Consultant maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party thirty (30) days written notice at its address set forth on the signature block of this Agreement. After termination, the City may take possession of all records and data within the Consultant’s possession pertaining to this project, which may be used by the City without restriction. If the City’s use of Consultant’s records or data is not related to this project, it shall be without liability or legal exposure to the Consultant. VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Consultant, its subcontractors, or any person acting on behalf of the Consultant or subcontractor shall not, by reason of race, religion, color, sex, age, sexual orientation, national origin, or the presence of any sensory, mental, or physical disability, discriminate against any person who is qualified and available to perform the work to which the employment relates. Consultant shall execute the attached City of Kent Equal Employment Opportunity Policy Declaration, Comply with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement. VII. INDEMNIFICATION. Consultant shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Consultant's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of Consultant's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, agents and volunteers, the Consultant's duty to defend, indemnify, and hold the City harmless, and Consultant’s liability accruing from that obligation shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event Consultant refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Consultant’s part, then Consultant shall pay all the City’s costs for defense, including all reasonable expert witness fees and reasonable attorneys’ fees, plus the City’s legal costs and fees incurred because there was a wrongful refusal on the Consultant’s part. The provisions of this section shall survive the expiration or termination of this Agreement. VIII. INSURANCE. The Consultant shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit C attached and incorporated by this reference. SUPPORT, MAINTENANCE, AND CONSULTANTING SERVICES AGREEMENT - 4 IX. EXCHANGE OF INFORMATION. The City will provide its best efforts to provide reasonable accuracy of any information supplied by it to Consultant for the purpose of completion of the work under this Agreement. X. OWNERSHIP AND USE OF RECORDS AND DOCUMENTS. Original documents, drawings, designs, reports, or any other records developed or created under this Agreement shall belong to and become the property of the City. All records submitted by the City to the Consultant will be safeguarded by the Consultant. Consultant shall make such data, documents, and files available to the City upon the City’s request. The Consultant acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington. As such, the Consultant agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act. The City’s use or reuse of any of the documents, data, and files created by Consultant for this project by anyone other than Consultant on any other project shall be without liability or legal exposure to Consultant. XI. CITY'S RIGHT OF INSPECTION. Even though Consultant is an independent contractor with the authority to control and direct the performance and details of the work authorized under this Agreement, the work must meet the approval of the City and shall be subject to the City's general right of inspection to secure satisfactory completion. XII. WORK PERFORMED AT CONSULTANT'S RISK. Consultant shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. All work shall be done at Consultant's own risk, and Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. XIII. MISCELLANEOUS PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties’ performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VII of this Agreement. D. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. Assignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. If the non-assigning party gives its consent to any assignment, SUPPORT, MAINTENANCE, AND CONSULTANTING SERVICES AGREEMENT - 5 the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Consultant. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. All of the above documents are hereby made a part of this Agreement. However, should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Compliance with Laws. The Consultant agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Consultant's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. I. Public Records Act. The Consultant acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington and documents, notes, emails, and other records prepared or gathered by the Consultant in its performance of this Agreement may be subject to public review and disclosure, even if those records are not produced to or possessed by the City of Kent. As such, the Consultant agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act. J. City Business License. Because it is anticipated that the Consultant will provide all services under this Agreement remotely, it is not necessary that the Consultant obtain a city of Kent business license under Chapter 5.01 of the Kent City Code. Should the nature of the Consultant’s services change, this business license requirement may apply and the Consultant may need to acquire a business license in the future. By its signature below, the Consultant affirms that it has reviewed Chapter 5.01 of the Kent City Code, understands it terms, and agrees to abide by its requirements. K. Counterparts and Signatures by Fax or Email. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person. IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. All acts consistent with the authority of this Agreement and prior to its effective date are ratified and affirmed, and the terms of the Agreement shall be deemed to have applied. CONSULTANT: By: (signature) Print Name: Its (title) DATE: CITY OF KENT: By: (signature) Print Name: Dana Ralph Its Mayor DATE: NOTICES TO BE SENT TO: CONSULTANT: NOTICES TO BE SENT TO: CITY OF KENT: SUPPORT, MAINTENANCE, AND CONSULTANTING SERVICES AGREEMENT - 6 [Insert Contact Name] [Insert Company Name] [Insert Address] [Address - Continued] [Insert Telephone Number] (telephone) [Insert Fax Number] (facsimile) Annette Pape, Project Manager/Business Analyst City of Kent Information Technology Dept. 220 Fourth Avenue South Kent, WA 98032 (253) 856-______ (telephone) (253) 856-______ (facsimile) APPROVED AS TO FORM: Kent Law Department ATTEST: Kent City Clerk [In this field, you may enter the electronic filepath where the contract has been saved] EEO COMPLIANCE DOCUMENTS - 1 DECLARATION CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY POLICY The City of Kent is committed to conform to Federal and State laws regarding equal opportunity. As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City’s equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, subcontractor or supplier on this specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outlines, it will be considered a breach of contract and it will be at the City’s sole determination regarding suspension or termination for all or part of the Agreement; The questions are as follows: 1. I have read the attached City of Kent administrative policy number 1.2. 2. During the time of this Agreement I will not discriminate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3. During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 4. During the time of the Agreement I, the prime contractor, will actively consider hiring and promotion of women and minorities. 5. Before acceptance of this Agreement, an adherence statement will be signed by me, the Prime Contractor, that the Prime Contractor complied with the requirements as set forth above. By signing below, I agree to fulfill the five requirements referenced above. By: ___________________________________________ For: __________________________________________ Title: _________________________________________ Date: _________________________________________ EEO COMPLIANCE DOCUMENTS - 2 CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 CONTRACTORS APPROVED BY Jim White, Mayor POLICY: Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year, must take the following affirmative steps: 1. Provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. Any contractor, subcontractor, consultant or supplier who willfully disregards the City’s nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments. 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject to these regulations are familiar with the regulations and the City’s equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. EEO COMPLIANCE DOCUMENTS - 3 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the (date), between the firm I represent and the City of Kent. I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity Policy that was part of the before-mentioned Agreement. By: ___________________________________________ For: __________________________________________ Title: _________________________________________ Date: _________________________________________ This page intentionally left blank. Page 1 of 10 Rimini Street, Inc. Proprietary & Confidential Statement of Work No. 1 J.D. Edwards Support Services This Statement of Work No. 1 – J.D. Edwards Support Services (“JDE SOW”) is issued pursuant to that certain Master Services Agreement dated on or about ______________________ (the “Agreement”) between the City of Kent, Washington (“Client”) and Rimini Street, Inc. (“Rimini Street”). This JDE SOW is effective as of the date of the last signature of the Parties below (“JDE SOW Effective Date”). Unless otherwise indicated herein, capitalized terms used in this JDE SOW without definition shall have the respective meanings specified in the Agreement and all section, schedule and attachment references in this JDE SOW shall be to applicable sections, schedules and attachments of the Agreement. To the extent that the terms and conditions set forth in this JDE SOW and Schedules attached hereto conflict with the terms and conditions of the Agreement, the terms and conditions of this JDE SOW and Schedule A will prevail. 1. Services Rimini Street shall provide Client with certain support services and certain deliverables as follows for the Covered Products listed in Schedule A attached hereto and subject to the capitalized definitions and additional terms found in Section 7 below (hereafter collectively referred to as “Services”): A. Product Support. Rimini Street will provide Client with diagnostic services, advice, and recommendations relating to the proper operation of Client’s J.D. Edwards System. B. Product Fixes. Rimini Street will provide fixes for Issues Client encounters in the J.D. Edwards Applications listed as Covered Products in Schedule A which are used in the J.D. Edwards Production Release (as well as the Target J.D. Edwards Production Release for any J.D. Edwards upgrade project Client undertakes). Rimini Street will provide fixes to the original code as delivered by Oracle Corporation (as successor in interest to J.D. Edwards) as well as to Client-Made Customized Code for on- line, batch, and report code. C. Tax, Legal and Regulatory Updates. Rimini Street will provide tax, legal and regulatory updates during the Support Period for the Covered Products and jurisdictions detailed in Schedule A. D. Installation Support. Rimini Street will provide support for reinstallations of the J.D. Edwards System if required as a result of an Issue with Client’s development, test, or production environments. Installation support shall include advice and recommendations for the execution of installation scripts, configuring the J.D. Edwards Technology Foundation. E. Interoperability Support. Rimini Street will provide advice, recommendations, and testing assistance with Issues determined to likely involve interoperability issues between the J.D. Edwards Technology Foundation, J.D. Edwards Applications, Rimini Street Supported RDBMS platform and Rimini Street Supported Operating System. F. Performance Tuning Support. Rimini Street will provide performance tuning diagnostics, advice, and recommendations for the J.D. Edwards Technology Foundation and J.D. Edwards Applications using proprietary and commercially available tools. G. Upgrade Process Support. Rimini Street will provide upgrade process support from Client’s current J.D. Edwards Production Release to any Target J.D. Edwards Production Release listed on Schedule A. Rimini Street will make upgrade support available to any such Target J.D. Edwards Production Release for at least fifteen (15) years after the JDE SOW Effective Date, provided this JDE SOW remains in effect without interruption during said fifteen (15) year period. Page 2 of 10 Rimini Street, Inc. Proprietary & Confidential H. Archiving Assistance. Rimini Street shall assist Client in identifying a specific scope of software updates and other support-related materials for the Covered Products that Client may elect to obtain from Oracle prior to the expiration date of the corresponding Oracle support services for the Covered Products (that expiration date being referred to as the “Maintenance End Date”). All Covered Product files or materials that Client downloads or otherwise obtains from Oracle prior to the Maintenance End Date shall be referred to collectively as the “Client Archive.” Client shall deposit the Client Archive on a file storage location owned, leased, or otherwise controlled by Client (the file storage location with the Client Archive shall be referred to as the “Client Archive Repository”). If Client requests that Rimini Street access the Client Archive in rendering Services under this JDE SOW, the Client Archive Repository and remote access connectivity thereto must meet the technical guidelines provided by Rimini Street to Client. 2. Support Period Rimini Street will provide Client with Services beginning at one minute past midnight (12:01 a.m.) United States Pacific Time on the JDE SOW Effective Date and ending at one minute before midnight (11:59 p.m.) United States Pacific Time on August 31, 2033 (“Support Period”). 3. Termination by Client Client may not terminate this JDE SOW at any time during Years 1 through 5 of the Support Period except for cause pursuant to the Agreement. Thereafter, Client may terminate Services for all Covered Products in this JDE SOW at the end of a Support Period Year with no less than ninety (90) calendar days written notice prior to the start date of any subsequent Support Period Year set forth in Section 5.A below for any reason or no reason, provided that all fees, taxes, duties, and expense reimbursements due under this JDE SOW shall be paid by Client to Rimini Street on or before the actual date of termination. 4. Service Level Agreement During the Support Period, Client will be entitled to receive support twenty-four (24) hours a day, seven (7) days a week (including major holidays) for Critical Issue (P1) cases. Response time commitment for a first live conversation with a Rimini Street engineer after Client contacts Rimini Street with a request for support on a Critical Issue case is less than fifteen (15) minutes. Client will be entitled to receive support for all other Issues during Rimini Street Business Hours as specified in Schedule A. Response time commitments and communication update intervals for each Issue are detailed in Table 1 below. Business Impact Guidelines for each Client Priority Level are detailed in Table 2 below. Further, Rimini Street will provide Client with at least one Named Primary Support Engineer. Client’s Named Primary Support Engineer shall be the point of contact at Rimini Street for Client’s personnel and agents reporting and working to resolve Issues with the Covered Products listed in Schedule A during the Support Period. When Client’s Named Primary Support Engineer is unavailable due to on-call rotations or days off, a temporary on-call Named Primary Support Engineer shall be available to Client. Table 1 Issue Severity Client Priority Level Rimini Street Initial Response Commitment Client Communications Update Commitment* Critical Issue Priority 1 15 Elapsed Minutes Every 2 Elapsed Hours Serious Issue Priority 2 30 Elapsed Minutes Every 4 Business Hours Standard Issue Priority 3 1 Business Day Every 5 Business Days Q&A Priority 4 1 Business Day As appropriate *If resolution of an Issue is dependent upon some interim measure, such as developing a software patch, etc., an alternative communication update commitment may be defined and agreed upon with Client. Page 3 of 10 Rimini Street, Inc. Proprietary & Confidential Table 2 Client Priority Level Business Impact Guidelines Priority 1 Issue where a supported Covered Product is completely unavailable to users or is working at a severely degraded capacity/performance level for multiple users that makes Covered Product unusable; or Issue has a major impact to external client/customer; or Issue is impacting revenue or time sensitive regulatory compliance AND no acceptable workaround exists. Priority 2 Issue where a supported Covered Product’s functionality has become limited or is working at marginally degraded capacity or performance for multiple users AND no acceptable workaround exists; or Issue where a Covered Product component is unavailable or is working at a severely degraded capacity/performance AND an acceptable workaround exists. Priority 3 Issue where a single user is unable to use a Covered Product or a component of a Covered Product that is necessary for the user to perform their primary work activities; or Issue that is not critical is encountered with the Covered Product that leads to a minimal loss of functionality, capacity or performance; or A feature is unavailable where another can be readily used (e.g., routing to a different printer). Priority 4 General request for information or “how to” (Q&A); or Report of event not causing impact to work operation or production. 5. Fees and Payment Schedule A. Annual Support Fees. In consideration for Services provided pursuant to this JDE SOW , Client agrees to pay Rimini Street fees (“Annual Support Fees”) for each year the JDE SOW remains in effect during the Support Period in accordance with the terms set forth herein as follows: for the periods from the JDE SOW Effective Date through August 31, 2019 (Year 1 of the Support Period), September 1, 2019 through August 31, 2020 (Year 2 of the Support Period), September 1, 2020 through August 31, 2021 (Year 3 of the Support Period), September 1, 2021 through August 31, 2022 (Year 4 of the Support Period), and September 1, 2022 through August 31, 2023 (Year 5 of the Support Period), the Annual Support Fee shall be $64,999.00 USD per Year. Unless terminated pursuant to Section 3, the Annual Support Fee for Years 6 through 15 of the Support Period shall increase each Year by 5% over the fee for Services paid by Client for the immediately preceding contiguous Year. Notwithstanding the foregoing, in the event that Client adds additional licensed products to the Covered Products listed in Schedule A or increases the license usage of any Covered Product beyond the “Maximum License Metric” listed in Schedule A for one or more Covered Products (whether or not such increased usage required Client to pay Oracle Corporation additional license fees), Client agrees to an equitable adjustment of the Annual Support Fees to reflect 50% of the projected Covered Product support and maintenance fees that would have been paid by Client to Oracle for annual support services on the expanded license or expanded license usage of the Covered Products. Any such equitable adjustment of the Annual Support Fees shall also be subject to the annual percentage increase described in the first paragraph of this Section 5.A. B. Payment Schedule. Annual Support Fees are due and payable by Client to Rimini Street according to the following agreed payment schedule (“Payment Schedule”): Payment Schedule Amount (USD) Year 1 of the Support Period: Payment shall be due and payable on the JDE SOW Effective Date $64,999.00 Page 4 of 10 Rimini Street, Inc. Proprietary & Confidential Subsequent Support Period Years: Payment shall be due and payable on or before the start date of the next subsequent Support Period Year $ As calculated per Section 5.A above A purchase order, if required by Client, shall be provided to Rimini Street immediately upon execution of this JDE SOW and annually thereafter at least sixty (60) days prior to the start date of each subsequent Support Period Year, provided that Client’s failure to timely send a purchase order shall not prevent Rimini Street from invoicing Client or excuse any delay in payment by Client. Client certifies that the Annual Support Fee for Year 1 of the Support Period (prior to any Rimini Street discounting for multi-year pre-payment) is no less than 50% of the total maintenance fees being charged by, and reflected in the most recent invoice(s) received from, the original software vendor (excluding all applicable taxes) for the Covered Products covering the period from September 1, 2017 to August 31, 2018 ("Maintenance Invoices"). Client further certifies that the Covered Products listed in Schedule A of this JDE SOW, including but not limited to the license metrics and user counts of such products, are identical to those products covered by the Maintenance Invoices. For purposes of clarity, Client agrees that the Schedule A Covered Products do not, and shall not, have any additions to or omissions from the products covered in the Maintenance Invoices. 6. Additional Client Obligations A. Final Testing of Fixes and Updates. Client is responsible for all final system testing to assure that Rimini Street provided fixes and updates perform as documented with the J.D. Edwards System before moving said fixes and updates into any production environment. B. Access to Software. Client acknowledges that Rimini Street may need, and Client therefore authorizes Rimini Street, to: (i) access, install, work with, configure, test, and possibly modify the Covered Products listed in Schedule A, which are used in the J.D. Edwards Production Release (as well as the Target J.D. Edwards Production Release for any upgrade project that Client undertakes), in order to render Services pursuant to this JDE SOW; and (ii) access the Client Archive (if any, and if Client requests that Rimini Street access the Client Archive in providing Services under this JDE SOW). Accordingly, Client shall provide Rimini Street with remote access to one or more non-production development and test environment(s), on servers owned, leased, or otherwise controlled by Client, that include the Covered Products and Client Archive, together with all license codes and other software required for their proper operation (each a “Non-Production Environment”). Each Non-Production Environment and remote access connectivity thereto must meet the technical guidelines provided by Rimini Street to Client. C. Work Product License Use Clarification. Notwithstanding anything to the contrary in the Agreement, Client may provide Client’s employees or a third party access to Rimini Street Work Product for the sole purpose of supporting the Covered Products listed in Schedule A in the event that Client chooses to terminate this JDE SOW and undertake self-support or contract with a different service provider to provide support and maintenance services for the Covered Products listed in Schedule A. In such event, Client shall bind such employee or third party to obligations of non-disclosure and restricted use which are no less stringent than those contained within this JDE SOW and the Agreement. D. Internal Client Support. Client is responsible for providing Help Desk Support and System Administration Support. 7. Additional Services Terms The following additional terms apply to the Services described in Section 1: A. Definitions. The following definitions are used throughout this JDE SOW : Page 5 of 10 Rimini Street, Inc. Proprietary & Confidential I. Client-Made Customized Code: Changes or updates made by Client or Client’s representatives to application code objects that vary from the standard, unmodified, but fix- mastered code line delivered by Oracle in its fix-mastered Applications. II. Covered Products: The individual product modules licensed to Client and set forth in Schedule A. III. Crystal Reports: A software product that performs as a reporting tool, and is bundled and licensed by Oracle or SAP AG for use with J.D. Edwards Systems. Crystal Reports is alternatively known as Seagate 9, Business Objects 10, and Business Objects Enterprise XI. IV. J.D. Edwards Application: An Oracle product whose definition, design, and operating characteristics are defined as on-line and batch code. V. J.D. Edwards Production Release: The J.D. Edwards product release level of the Covered Products that Client is currently using in its live, production environment. VI. J.D. Edwards System: Includes the Client’s J.D. Edwards Technology Foundation and Applications listed on Schedule A operating on the J.D. Edwards Production Release. VII. J.D. Edwards Technology Foundation Code: Includes the group of J.D. Edwards and third party products known as Foundation Code, application servers, web servers, and middleware products such as IBM WebSphere and Oracle Fusion Middleware. VIII. RDBMS: Relational Database Management System. Examples include DB2, Oracle, and SQL Server products by IBM, Oracle, and Microsoft, respectfully. IX. Rimini Street Supported Operating System: An operating system and operating system release level supported by Oracle on or before Client terminates its Oracle support services agreement for the Covered Products, or subsequently agreed to be supported by Rimini Street for use with Client’s J.D. Edwards Production Release. X. Rimini Street Supported RDBMS Release: An RDBMS and RDBMS release level supported by Oracle on or before Client terminates its Oracle support services agreement for the Covered Products, or subsequently agreed to be supported by Rimini Street for use with Client’s J.D. Edwards Production Release. XI. Issue: An issue to be addressed pursuant to Table 1 in Section 4 that meets all of the following criteria: (i) found by Client in the J.D. Edwards Technology Foundation, J.D. Edwards Applications, or Crystal Reports implementation, or in any updates and fixes provided to Client by Rimini Street, or by Oracle and obtained from J.D. Edwards, PeopleSoft, Inc. or Oracle Corporation by Client up through the date that Client terminates its Oracle support services agreement for Covered Products; (ii) Client becomes aware of the issue during the Support Period and reports the issue to Rimini Street during the Support Period; and (iii) meets one of the four Priority Level criteria set forth on Table 2 of Section 4. XII. J.D. Edwards Target Production Release: The J.D. Edwards product release level(s) of the Covered Products that are: (a) generally available to Oracle customers prior to termination of Client’s Oracle support services agreement for the Covered Products; (b) obtained by Client; and that (c) Client may desire to upgrade to as its next, live, production environment, as specified in Schedule A. XIII. Help Desk Support: Means first line, simple corrective assistance by one or more individuals or a third party organization designated and/or contracted by Client to be the Page 6 of 10 Rimini Street, Inc. Proprietary & Confidential first point of contact for Client’s entire user population for Covered Products. Help Desk Support provides an initial front-line response to all Client user-reported cases, and resolves certain low-level user reported issues. Common issues to be resolved by Help Desk Support include general system information requests, Covered Product user administration (e.g., user setup and security), Client-specific operational procedures, hardware issues and infrastructure availability (e.g., LAN, web, Internet Service Provider, application, and database access), and similar activities. XIV. System Administration Support: Means in-depth technical and system administration support that includes technical troubleshooting, analysis and resolution options for the Covered Products. System Administration Support services are more advanced than those generally provided by Help Desk Support and typically staffed with product trained personnel experienced with the Covered Products. Issues with Covered Products reported by Client end users to Help Desk Support that are not fully resolved by Help Desk Support may be escalated to System Administration Support. System Administration Support may include assisting Help Desk Support with resolution of issues, independent System Administration Support diagnosis and resolution of more advanced issues, and/or installation and configuration of software workarounds, updates or fixes made available and provided by Rimini Street. Issues not able to be resolved by System Administration Support may be escalated to Rimini Street. XV. Business Hour: A single hour of time during the Rimini Street Business Hours specified in Schedule A, Monday through Friday. XVI. Business Day: Nine (9) Business Hours. XVII. Elapsed Minutes: Actual accrued time from a specific event (such as logging a case). B. J.D. Edwards Technology Foundation Code, Third Party Products, and Language Support. Rimini Street will provide support for J.D. Edwards Technology Foundation Code under this JDE SOW . However, Client understands and acknowledges that Rimini Street is not able to, and will not, provide any fixes or updates for the J.D. Edwards Technology Foundation Code or any third party, non-J.D. Edwards products used with, imbedded, integrated, or bundled with the Covered Products since Client does not have rights to access or modify source code for these products. For purposes of example only, such third party products include, but are not limited to, operating systems, database systems, application servers, web servers, Citrix, online and batch processing tools, reporting tools, and analytic tools. The scope of this JDE SOW expressly excludes support for any language object related issues other than for those listed as covered in any Schedule A. C. Installation Support. Rimini Street will remotely support Client with respect to initial, first- time installations and configurations of J.D. Edwards products that Client was not using in production on or before the Support Period. Installation Support does not include project planning, advice, or recommendations relating to the migration of RDBMS platforms or J.D. Edwards Technology Foundation Code server and RDBMS server operating system platforms (e.g., Oracle to DB2 RDBMS or Windows 2000 to UNIX), nor installations of a new major release of J.D. Edwards products performed as the first step in an upgrade project to a new production J.D. Edwards major release (e.g., J.D. Edwards OneWorld 8.0 to OneWorld 8.9). Installation Support is subject to Client having a sufficient backup of the software installation, or a copy of the Covered Products with all necessary components, and making it available to Rimini Street for reinstallation. D. Interoperability Support. Interoperability Support will be remotely available to Client for its J.D. Edwards System so long as the combination of products and platforms is supported and designed for compatible use in the J.D. Edwards System and such combination of products and platforms has been fully tested for proper interoperability prior to production rollout and go-live. Client is fully responsible for any interoperability issues related to third-party products that are incompatible with or that were not properly tested for proper operation with Client’s J.D. Edwards System. Rimini Street will provide upon request, at Page 7 of 10 Rimini Street, Inc. Proprietary & Confidential an additional fee per request and with Client providing copies of all source and target software releases, interoperability testing for operating system and RDBMS release updates that have not been tested by J.D. Edwards for proper operation with the J.D. Edwards System prior to the termination of Client’s Oracle support services agreement for the Covered Products. E. Performance Tuning. Client is responsible for ensuring adequate and reasonable functional, scalability, and regression testing have been completed in development and test phases prior to production rollout and go-live. Performance tuning support includes recommendations and advice for configuration, deployment model, and parameter settings for the J.D. Edwards Foundation Code and J.D. Edwards Applications. F. Upgrade Support. Client is responsible for obtaining any Target J.D. Edwards Production Release, as well as all related and available J.D. Edwards upgrade deliverables that include upgrade script templates, patches, localizations, technical platforms, J.D. Edwards Fix Bundles, J.D. Edwards Hot Fixes, release notes, release documentation, upgrade documentation, or necessary license keys. G. Upgrade Process Support. Client is responsible for actual upgrade project planning, resourcing, and execution. H. Client-Made Customized Code Support. Client must make its Client-Made Customized Code and related customized documentation available to Rimini Street with reasonable lead time prior to the first support request by Client. Further, only customizations that have been implemented and coded using J.D. Edwards Tools will be supported as part of this JDE SOW , and said Client-Made Customized code must have: (a) been tested and proven functionally stable in a development and/or test environment; (b) undergone reasonable, industry-standard functional, regression, and scalability testing prior to production rollout and go-live; and (c) worked successfully in production before an Issue arises. I. Twenty-First Century Dates. J.D. Edwards designed two-digit year displays to resolve into four-digit years for storage and manipulation. Therefore, two-digit year displays in online panels or reports are not programming errors or considered an Issue in the context of this JDE SOW . J. Tax, Legal and Regulatory Support. Client must possess the most recent tax, legal and regulatory updates made available by Oracle for the J.D. Edwards Production Release and any Target J.D. Edwards Production Release before Client’s Maintenance End Date (“Tax, Legal & Regulatory Foundation”). Rimini Street will build future tax, legal and regulatory updates starting from the Tax, Legal & Regulatory Foundation, provided that Rimini Street shall not be required to provide any such updates prior to Client’s Maintenance End Date. K. Additional Consulting. Any services required by Client outside the defined Services in this JDE SOW are expressly excluded from the scope of this JDE SOW. Rimini Street will not perform out- of-scope services without Client’s pre-approval. If Client desires Rimini Street to provide additional out-of- scope services, separate agreements in the form of an amendment to this JDE SOW or an additional SOW will need to be executed by the Parties prior to Rimini Street performing such services. L. Trade Names. The J.D. Edwards name, J.D. Edwards product names, and J.D. Edwards release names are trademarks of Oracle Corporation. All other names and product names are the property of their respective owners. M. Tax, Legal and Regulatory Updates. If “Order Management” is listed as a Covered Product on Schedule A, Client must contract independently of this JDE SOW and pay Vertex for sales & use tax updates. If “Payroll” is listed as a Covered Product on Schedule A, Client must contract independently of this JDE SOW and pay Vertex for payroll tax updates. If “Payroll” is listed as a Covered Product on Schedule A, Rimini Street will provide support for the interface to the Vertex payroll module. Page 8 of 10 Rimini Street, Inc. Proprietary & Confidential 8. Client Contacts Primary Contact Billing Contact Shipping Contact Name: Lynette Smith Name: Same as Primary Name: Same as Primary Address1: 220 Fourth Avenue South Address1: Address1: City, St, Zip: Kent, Washington 98032 City, St, Zip: City, St, Zip: Phone: +1 (253) 856-4602 Phone: Phone: Email: lsmith@kentwa.gov Email: Email: 9. Signatures The undersigned represent and warrant that they are authorized, as representatives of the party on whose behalf they are signing, to sign this JDE SOW and to bind their respective party thereto. For Client: For Rimini Street, Inc.: __________________________________ __________________________________ Authorized Signature Authorized Signature __________________________________ __________________________________ Printed Name Printed Name __________________________________ __________________________________ Title __________________________________ Date Title __________________________________ Date Page 9 of 10 Rimini Street, Inc. Proprietary & Confidential Schedule A to Statement of Work No. 1 Data Center Location(s): Kent, Washington Client Support Team Location(s): Kent, Washington Support to be provided in the following Language(s): English Client Support Team Business Hours/Time Zone:8:00 a.m. – 5:00 p.m. Pacific Time Rimini Street Business Hours/Time Zone:8:00 a.m. – 5:00 p.m. Pacific Time Responsibility for Maintaining and Supporting Interfaces: Client Production Instances Supported: One (1) DBMS Hardware Platform and RDBMS: Dell/SQLServer, Nutanix OS Release:MS Server 2008 Application Server Platform:Windows 2008 Citrix Server (if any):6.5 Web/JAS Server (if any):Not Applicable Oracle Maintenance End Date:August 31, 2018 Geographies Supported: United States (Note: Subject to reasonable fees to be agreed upon by the Parties, additional Geographies may be added at the Client’s discretion. Client shall provide Rimini Street a written request for new Geography additions at least 90 days in advance of Client’s desired go-live date with each Geography addition.) System Languages Supported: English (Note: Subject to reasonable fees to be agreed upon by the Parties, additional System Languages may be added at the Client’s discretion. Client shall provide Rimini Street a written request for new System Languages at least 90 days in advance of Client’s desired go-live date with each System Language addition.) JDE Localizations Supported: None (Note: Subject to reasonable fees to be agreed upon by the Parties, additional Localizations may be added at the Client’s discretion. Client shall provide Rimini Street a written request for new Localizations at least 90 days in advance of Client’s desired go-live date with each Localization addition.) Covered Products JD Edwards Module CSI Number Current Release Level and Tools Release Level Future Target Release(s) and Minimum Patch Level(s) Tax, Legal & Regulatory Updates? Applicable Tax & Regulatory Jurisdiction Maximum License Metric Notes JD Edwards EnterpriseOne HCM Foundation 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Internal Self-Service U 14483763 9.1 9.2 No 1000 Users JD Edwards EnterpriseOne Real Estate Management 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Service Management foundation 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Solution Concurrent Users 14483763 9.1 9.2 No 63 Users JD Edwards EnterpriseOne Suite Moderate User 14483763 9.1 9.2 No 20 Users JD Edwards EnterpriseOne Time And Labor 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Us Payroll 14483763 9.1 9.2 Yes United States 1 Users W2 JD Edwards EnterpriseOne Accounts Payable 14483763 9.1 9.2 Yes United States 1 Users US IRS Form 1099 Updates JD Edwards EnterpriseOne Accounts Receivable 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Advanced Cost Accounting 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Autopilot 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Capital Asset Management 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Contract and Service Billing 14483763 9.1 9.2 No 1 Users Page 10 of 10 Rimini Street, Inc. Proprietary & Confidential JD Edwards EnterpriseOne Employee Self Service User - Employee Count Perpetual 14483763 9.1 9.2 No 900 Users JD Edwards EnterpriseOne Employee Self-Service 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Fixed Asset Accounting 14483763 9.1 9.2 Yes United States 1 Users US Federal Depreciation Updates JD Edwards EnterpriseOne Foundation - Address Book 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Foundation - EDI Foundation 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Foundation - Electronic Mail 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Foundation - Order Processing 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Foundation - Self Service Order Processing - JDE Module Perpetual 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Foundation - Self-Service 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Foundation - System Foundation 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Foundation - Work Order 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Human Resources Management 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Internet Access Application - JD Edwards Module 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Inventory Management 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Manager Self Service User - Employee Count Perpetual 14483763 9.1 9.2 No 100 Users JD Edwards EnterpriseOne Manager Self-Service 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Manufacturing - ETO Foundation 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Manufacturing - PDM 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Manufacturing - Shop Floor 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Procurement and Subcontract Management 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Project Costing 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseoOne General Ledger 14483763 9.1 9.2 No 1 Users JD Edwards EnterpriseOne Technology Foundation 1556037 9.1 Latest Available on JDE SOW Effective Date No 1 Application User Perpetual Page 1 of 8 Rimini Street, Inc. Proprietary & Confidential Statement of Work No. 2 Oracle Database Support Services This Statement of Work No. 2 – Oracle Database Support Services (“ODB SOW”) is issued pursuant to that certain Master Services Agreement dated on or about ____________________ (the “Agreement”) between the City of Kent, Washington (“Client”) and Rimini Street, Inc. (“Rimini Street”). This ODB SOW is effective as of the date of the last signature of the Parties below (“ODB SOW Effective Date”). Unless otherwise indicated herein, capitalized terms used in this ODB SOW without definition shall have the respective meanings specified in the Agreement. To the extent that the terms and conditions set forth in this ODB SOW and Schedules attached hereto conflict with the terms and conditions of the Agreement, the terms and conditions of this ODB SOW and Schedule A will prevail. 1. Services Rimini Street shall provide Client with certain support services and certain deliverables as follows for the Covered Products listed in Schedule A attached hereto (hereafter collectively referred to as “Services”): A. Product Support. Rimini Street will provide Client with diagnostic services, advice, and recommendations relating to the proper operation of Client’s Covered Products. Since Client does not have access to source code for the Covered Products, product support specifically excludes the development and delivery of code changes, code fixes, and code updates of any kind for the Covered Products. B. Installation Support. Rimini Street will provide advice and recommendations for reinstallations and configuration of the Covered Products if required as a result of an Issue with Client’s development, test, or production environments. C. Interoperability Support. Rimini Street will provide advice, recommendations, and testing assistance with Issues determined to likely involve interoperability issues between the Covered Products and Client’s server operating system. D. Performance Tuning Support. Rimini Street will provide performance tuning diagnostics, advice, and recommendations for the Covered Products using proprietary and commercially available tools. Rimini Street will use commercially reasonable efforts to provide advice and recommendations for performance tuning Client’s server operating system. E. Upgrade Process Support. Rimini Street will provide upgrade process support from Client’s current Database Production Release to any Target Database Production Release listed on Schedule A. Rimini Street will make upgrade support available to any such Target Database Production Release for at least fifteen (15) years after the ODB SOW Effective Date, provided this ODB SOW remains in effect without interruption during said fifteen (15) year period. F. Archiving Assistance. Rimini Street shall assist Client in identifying a specific scope of software updates and other support-related materials for the Covered Products that Client may elect to obtain from Oracle prior to the expiration date of the corresponding Oracle support services for the Covered Products (that expiration date being referred to as the “Maintenance End Date”). All Covered Product files or materials that Client downloads or otherwise obtains from Oracle prior to the Maintenance End Date shall be referred to collectively as the “Client Archive.” Client shall deposit the Client Archive on a file storage location owned, leased, or otherwise controlled by Client (the file storage location with the Client Archive shall be referred to as the “Client Archive Repository”). If Client requests that Rimini Street access the Client Archive in rendering Services under this ODB SOW, the Client Archive Repository and remote access connectivity thereto must meet the technical guidelines provided by Rimini Street to Client. Page 2 of 8 Rimini Street, Inc. Proprietary & Confidential 2. Support Period Rimini Street will provide Client with Services beginning at one minute past midnight (12:01 a.m.) United States Pacific Time on the ODB SOW Effective Date and ending at one minute before midnight (11:59 p.m.) United States Pacific Time on August 31, 2033 (“Support Period”). 3. Termination by Client Client may not terminate this ODB SOW at any time during Years 1 through 2 of the Support Period except for cause pursuant to the Agreement. Thereafter, Client may terminate Services for all Covered Products in this ODB SOW at the end of a Support Period Year with no less than ninety (90) calendar days written notice prior to the start date of any subsequent Support Period Year set forth in Section 5.A below for any reason or no reason, provided that all fees, taxes, duties, and expense reimbursements due under this ODB SOW shall be paid by Client to Rimini Street on or before the actual date of termination. 4. Service Level Agreement During the Support Period, Client will be entitled to receive support twenty-four (24) hours a day, seven (7) days a week (including major holidays) for Critical Issue (P1) cases. Response time commitment for a first live conversation with a Rimini Street engineer after Client contacts Rimini Street with a request for support on a Critical Issue case is less than fifteen (15) minutes. Client will be entitled to receive support for all other Issues during Rimini Street Business Hours as specified in Schedule A. Response time commitments and communication update intervals for each Issue are detailed in Table 1 below. Business Impact Guidelines for each Client Priority Level are detailed in Table 2 below. Further, Rimini Street will provide Client with at least one Named Primary Support Engineer. Client’s Named Primary Support Engineer shall be the point of contact at Rimini Street for Client’s personnel and agents reporting and working to resolve Issues with the Covered Products listed in Schedule A during the Support Period. When Client’s Named Primary Support Engineer is unavailable due to on-call rotations or days off, a temporary on-call Named Primary Support Engineer shall be available to Client. Table 1 Issue Severity Client Priority Level Rimini Street Initial Response Commitment Client Communications Update Commitment* Critical Issue Priority 1 15 Elapsed Minutes Every 2 Elapsed Hours Serious Issue Priority 2 30 Elapsed Minutes Every 4 Business Hours Standard Issue Priority 3 1 Business Day Every 5 Business Days Q&A Priority 4 1 Business Day As appropriate *If resolution of an Issue is dependent upon some interim measure, such as developing a software patch, etc., an alternative communication update commitment may be defined and agreed upon with Client. Table 2 Client Priority Level Business Impact Guidelines Priority 1 Issue where a supported Covered Product is completely unavailable to users or is working at a severely degraded capacity/performance level for multiple users that makes a Covered Product unusable; or Issue has a major impact to external client/customer; or Issue is impacting revenue or time sensitive regulatory compliance AND no acceptable workaround exists. Page 3 of 8 Rimini Street, Inc. Proprietary & Confidential Priority 2 Issue where a Covered Product’s functionality has become limited or is working at marginally degraded capacity or performance for multiple users AND no acceptable workaround exists; or Issue where a Covered Product component is unavailable or is working at a severely degraded capacity/performance AND an acceptable workaround exists. Priority 3 Issue where a single user is unable to use a Covered Product or a component of a Covered Product that is necessary for the user to perform their primary work activities; or Issue that is not critical is encountered with the Covered Product that leads to a minimal loss of functionality, capacity or performance; or A feature is unavailable where another can be readily used (e.g., routing to a different printer). Priority 4 General request for information or “how to” (Q&A); or Report of event not causing impact to work operation or production. 5. Fees and Payment Schedule A. Annual Support Fees. In consideration for Services provided pursuant to this ODB SOW , Client agrees to pay Rimini Street fees (“Annual Support Fees”) for each year the ODB SOW remains in effect during the Support Period in accordance with the terms set forth herein as follows: for the periods from the ODB SOW Effective Date through August 31, 2019 (Year 1 of the Support Period), and September 1, 2019 through August 31, 2020 (Year 2 of the Support Period), the Annual Support Fee shall be $29,120.00 USD per Year. Unless terminated pursuant to Section 3, the Annual Support Fee for Years 3 through 15 of the Support Period shall increase each Year by 5% over the fee for Services paid by Client for the immediately preceding contiguous Year. Notwithstanding the foregoing, in the event that Client adds additional licensed products to the Covered Products listed in Schedule A or increases the license usage of any Covered Product beyond the “Maximum License Metric” listed in Schedule A for one or more Covered Products (whether or not such increased usage required Client to pay Oracle additional license fees), Client agrees to an equitable adjustment of the Annual Support Fees to reflect 50% of the projected Covered Product support and maintenance fees that would have been paid by Client to Oracle for annual support services on the expanded license or expanded license usage of the Covered Products. Any such equitable adjustment of the Annual Support Fees shall also be subject to the annual percentage increase described in the first paragraph of this Section 5.A. B. Payment Schedule. Annual Support Fees are due and payable by Client to Rimini Street according to the following agreed payment schedule (“Payment Schedule”): Payment Schedule Amount (USD) Year 1 of the Support Period: Payment shall be due and payable on the ODB SOW Effective Date $29,120.00 Subsequent Support Period Years: Payment shall be due and payable on or before the start date of the next subsequent Support Period Year $ As calculated per Section 5.A above A purchase order, if required by Client, shall be provided to Rimini Street immediately upon execution of this ODB SOW and annually thereafter at least sixty (60) days prior to the start date of each subsequent Support Period Year, provided that Client’s failure to timely send a purchase order shall not prevent Rimini Street from invoicing Client or excuse any delay in payment by Client. Client certifies that the Annual Support Fee for Year 1 of the Support Period (prior to any Rimini Street discounting for multi-year pre-payment) is no less than 50% of the total maintenance fees being charged Page 4 of 8 Rimini Street, Inc. Proprietary & Confidential by, and reflected in the most recent invoice(s) received from, the original software vendor (excluding all applicable taxes) for the Covered Products covering the period from September 1, 2017 to August 31, 2018 ("Maintenance Invoices"). Client further certifies that the Covered Products listed in Schedule A of this ODB SOW, including but not limited to the license metrics and user counts of such products, are identical to those products covered by the Maintenance Invoices. For purposes of clarity, Client agrees that the Schedule A Covered Products do not, and shall not, have any additions to or omissions from the products covered in the Maintenance Invoices. 6. Additional Client Obligations A. Final Testing of Fixes and Updates. Client is responsible for all final system testing to assure that Rimini Street changes perform as documented with the Covered Products before implementing said changes in any production environment. B. Access to Software. Client acknowledges that Rimini Street may need, and Client therefore authorizes Rimini Street, to: (i) access, install, work with, configure, test, and possibly modify the Covered Products listed in Schedule A, which are used in the Database Production Release (as well as the Target Database Production Release for any upgrade project that Client undertakes), in order to render Services pursuant to this ODB SOW; and (ii) access the Client Archive (if any, and if Client requests that Rimini Street access the Client Archive in providing Services under this ODB SOW ). Accordingly, Client shall provide Rimini Street with remote access to one or more non-production development and test environment(s), on servers owned, leased, or otherwise controlled by Client, that include the Covered Products and Client Archive, together with all license codes and other software required for their proper operation (each a “Non-Production Environment”). Each Non-Production Environment and remote access connectivity thereto must meet the technical guidelines provided by Rimini Street to Client. C. Work Product License Use Clarification. Notwithstanding anything to the contrary in the Agreement, Client may provide Client’s employees or a third party access to Rimini Street Work Product for the sole purpose of supporting the Covered Products listed in Schedule A in the event that Client chooses to terminate this ODB SOW and undertake self-support or contract with a different service provider to provide support and maintenance services for the Covered Products listed in Schedule A. In such event, Client shall bind such employee or third party to obligations of non-disclosure and restricted use which are no less stringent than those contained within this ODB SOW and the Agreement. D. Internal Client Support. Client is responsible for providing Help Desk Support and System Administration Support. 7. Additional Services Terms The following additional terms apply to the Services described in Section 1: A. Definitions. The following definitions are used throughout this ODB SOW : I. Database Production Release: The database product release level of the Covered Products that Client is currently using in its live, production environment, as specified in Schedule A as the current release. II. Covered Products: The individual products licensed to Client and set forth in Schedule A. III. Issue: An issue to be addressed pursuant to Section 4, Table 1 above that meets all of the following criteria: (i) found by Client in the Covered Products or in any changes provided to Client by Rimini Street or Oracle or obtained by Client from Oracle up through the date that Client terminates its Oracle support services agreement for the Covered Products; (ii) Client becomes aware of the issue during the Support Period and reports the issue to Page 5 of 8 Rimini Street, Inc. Proprietary & Confidential Rimini Street during the applicable Support Period; and (iii) meets one of the four Priority Level criteria set forth in Section 4, Table 2 above. IV. Target Database Production Release: The database product release level(s) of the Covered Products that are: (a) generally available to database customers prior to termination of Client’s original software vendor’s support services agreement for the Covered Products; (b) obtained by Client; and that (c) Client may desire to upgrade to as its next, live, production environment, as specified in Schedule A. V. Help Desk Support: Means first line, simple corrective assistance by one or more individuals or a third party organization designated and/or contracted by Client to be the first point of contact for Client’s entire user population for the Covered Products. Help Desk Support provides an initial front-line response to all Client user-reported cases, and resolves certain low-level user reported issues. Common issues to be resolved by Help Desk Support include general system information requests, Covered Product user administration (e.g., user setup and security), Client-specific operational procedures, hardware issues and infrastructure availability (e.g., LAN, web, Internet Service Provider, application, and database access), and similar activities. VI. System Administration Support: Means in-depth technical and system administration support that includes technical troubleshooting, analysis and resolution options for the Covered Products. System Administration Support services are more advanced than those generally provided by Help Desk Support and typically staffed with product trained personnel experienced with the Covered Products. Issues with Covered Products reported by Client end users to Help Desk Support that are not fully resolved by Help Desk Support may be escalated to System Administration Support. System Administration Support may include assisting Help Desk Support with resolution of issues, independent System Administration Support diagnosis and resolution of more advanced issues, and/or installation and configuration of software workarounds, updates or fixes made available and provided by Rimini Street. Issues not able to be resolved by System Administration Support may be escalated to Rimini Street. VII. Business Hour: A single hour of time during the Rimini Street Business Hours specified in Schedule A, Monday through Friday. VIII. Business Day: Nine (9) Business Hours. IX. Elapsed Minutes: Actual accrued time from a specific event (such as logging a case). B. Third Party Products. Rimini Street is not able and will not provide any fixes or updates to any third party products used with, imbedded, integrated or bundled with the Covered Products. The scope of this ODB SOW expressly excludes support for any object issues other than for those listed as covered in any Schedule A. C. Installation Support. Rimini Street will remotely support Client with respect to initial, first- time installations and configurations of Covered Products that the Client was not using in production on or before the Support Period. Installation Support does not include project planning, advice, or recommendations relating to changes in the underlying system infrastructure (e.g., hardware or network configuration), nor installations of a new major release of a Covered Product performed as the first step in an upgrade project to a new production Covered Product major release. Installation Support is subject to Client having a sufficient backup of the software installation, or a copy of the Covered Products with all necessary components, and making it available to Rimini Street for reinstallation. D. Interoperability Support. Interoperability Support will be remotely available to Client for its Covered Products so long as the combination of products and platforms is supported and designed for compatible use with the Covered Products and such combination of products and platforms has been fully Page 6 of 8 Rimini Street, Inc. Proprietary & Confidential tested for proper interoperability prior to production rollout and go-live. Client is fully responsible for any interoperability issues related to third-party products that are incompatible with or that were not properly tested for proper operation with Client’s Covered Products. Rimini Street will provide upon request, at an additional fee and with Client providing copies of all source and target software releases, interoperability testing for applications and operating systems that have not been tested by the applications licensor for proper operation with the Covered Products prior to the termination of Client’s Oracle support services agreement for the Covered Products. E. Performance Tuning. Client is responsible for ensuring adequate and reasonable functional, scalability, and regression testing have been completed in development and test phases prior to production rollout and go-live of the Covered Products. Performance tuning support includes recommendations and advice for configuration, deployment model, and parameter settings for the Covered Products. F. Upgrade Support. Client is responsible for obtaining any Target Database Production Release, as well as all related and available upgrade deliverables from Oracle for the Covered Products that include major upgrades, maintenance packs, family packs, minipacks, critical patch updates, interoperability patches (e.g., updated versions of third-party technology components or updated operating system versions), language patches and any documented patch dependencies, localizations, technical platforms, release notes, release documentation, or upgrade documentation. G. Upgrade Process Support. Client is responsible for actual upgrade project planning, resourcing, and execution. H. Rimini Street Work Product. All deliverables under this ODB SOW are considered Rimini Street Work Product as defined in the Agreement. I. Additional Consulting. Any services required by Client outside the Services defined in this ODB SOW are expressly excluded from the scope of this ODB SOW. Rimini Street will not perform out-of-scope services without Client’s pre-approval. If Client desires Rimini Street to provide additional out- of-scope services, separate agreements in the form of an amendment to this ODB SOW or an additional SOW will need to be executed by the Parties prior to Rimini Street performing such services. J. Trade Names. The Oracle name, Oracle product names, and Oracle release names are trademarks of Oracle Corporation. All other names and product names are the property of their respective owners. 8. Client Contacts Primary Contact Billing Contact Shipping Contact Name: Lynette Smith Name: Same as Primary Name: Same as Primary Address1: 220 Fourth Avenue Address1: Address1: City, St, Zip: Kent, Washington 98032 City, St, Zip: City, St, Zip: Phone: +1 (253) 856-4602 Phone: Phone: Email: lsmith@kentwa.gov Email: Email: Page 7 of 8 Rimini Street, Inc. Proprietary & Confidential 9. Signatures The undersigned represent and warrant that they are authorized, as representatives of the party on whose behalf they are signing, to sign this ODB SOW and to bind their respective party thereto. For Client: For Rimini Street, Inc.: __________________________________ __________________________________ Authorized Signature Authorized Signature __________________________________ __________________________________ Printed Name Printed Name __________________________________ __________________________________ Title __________________________________ Date Title __________________________________ Date Page 8 of 8 Rimini Street, Inc. Proprietary & Confidential Schedule A to Statement of Work No. 2 Covered Products Data Center Location(s): Kent, Washington Client Support Team Location(s): Kent, Washington Support to be provided in the following Language(s): English Client Support Team Business Hours/Time Zone: 8:00 a.m. – 5:00 p.m. Pacific Time Rimini Street Business Hours/Time Zone: 8:00 a.m. – 5:00 p.m. Pacific Time Database Hardware: Dell Database Operating System: Windows 2003 Number of Database Servers: Two (2) Technology Maintenance End Date (“MED”): August 31, 2018 Core Database Product CSI Number Current Release and Patch Level Future Target Release(s) and Minimum Patch Level(s) Licensing Metric Maximum Licensing Count Notes 1 Oracle Database Enterprise Edition 15596037 10.2.0.1 Latest Available on DB SOW Effective Date (“LAOED”) Named User Plus Perpetual 1 2 Oracle Database Enterprise Edition 15596037 10.2.0.1 LAOED Processor Perpetual 2 3 Oracle Database Standard Edition 15596037 10.2.0.1 LAOED Named User Plus Perpetual 1 4 Oracle Database Standard Edition 15596037 10.2.0.1 LAOED Processor Perpetual 1 5 Oracle8 3046365 10.2.0.1 LAOED Universal Power Unit 1200 Agenda Item: Consent Calendar – 8G_ TO: City Council DATE: July 3, 2018 SUBJECT: Revisions to Ch. 9.38 KCC – Parking – Ordinance - Adopt SUMMARY: Kent Design and Construction Standards limit parking to one side of the street unless the roadway width is at least 32-feet. This ordinance will revise the city code to create new parking restrictions in the neighborhoods listed below. These restrictions address concerns regarding narrow residential streets brought to the attention of the city by residents of the neighborhoods and the Fire Marshal. The proposed changes would affect the Ceder Point, Laurel Springs and Shadowbrook Ridge neighborhoods on the East Hill. EXHIBITS: Ordinance RECOMMENDED BY: Public Works Committee YEA: Fincher, Troutner, Higgins NAY: BUDGET IMPACTS: The estimated cost to procure and install signs as proposed in the above neighborhoods is estimated at $18,500. The Public Works Committee supports funding from the Residential Paving Program, which is funded by the Solid Waste Utility Tax. Estimated breakdown by neighborhood: • Ceder Point: $4,500 for installation of approximately 9 signs. • Laurel Springs: $2,000 for installation of 4 signs. • Shadowbrook Ridge: $12,000 for installation of approximately 24 signs. STRATEGIC PLAN GOAL(S): ☒ Thriving Neighborhoods and Urban Centers - Creating vibrant urban centers, welcoming neighborhoods, and green spaces for healthy growth and cultural celebration. MOTION: Adopt Ordinance No. _____ amending Chapter 9.38 of the Kent City Code, limiting parking to one side of the street in the Laurel Springs, Ceder Point and Shadowbrook Ridge neighborhoods to be consistent with adopted Kent Design and Construction Standards. This page intentionally left blank. 1 Amend KCC 9.38.020 - Re: No Parking Zones ORDINANCE NO. AN ORDINANCE of the city council of the City of Kent, Washington, amending section 9.28.020, entitled “No parking zones,” to prohibit parking in certain areas of the Laurel Springs, Ceder Point, and Shadowbrook neighborhoods. RECITALS A. Section 9.38.020 of the Kent City Code sets forth areas within the City of Kent where parking is prohibited. B. Pursuant to the 2009 City of Kent Design and Construction Standard, Standard Details 6-11 and 6-12, parking is limited to one side of the street where street widths are less than 32 feet in residential areas. Parking is permitted on one side of the street where widths are between 28 feet and 32 feet. In some areas that have been annexed into the City, road widths are narrower than the 32-foot width at which parking is permitted on both sides by Kent code. Parking on both sides of these roads creates accessibility issues for residents and emergency vehicles. C. Residents in the Ceder Point, Laurel Springs and Shadowbrook Ridge neighborhoods have contacted the City of Kent to help address parking issues within their respective neighborhoods. These neighborhoods do not meet criteria in the Kent Design and Construction Standards to have parking on both sides of the residential street. 2 Amend KCC 9.38.020 - Re: No Parking Zones NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. - Amendment. Section 9.38.020 of the Kent City Code, entitled “No parking zones” is amended as follows: Sec. 9.38.020 No parking zones. A. At such time as the traffic engineer shall place the appropriate sign or signs, it shall be illegal to park any motor vehicle or other vehicle, as those terms are defined in Chapter 46.04 RCW, at any time upon and on either side of, unless otherwise indicated, the following roadways or portions thereof: 1. 1st Avenue North: from the intersection of West James Street to the north end of 1st Avenue North, east side only. 2. 1st Avenue North: from West James Street to West Smith Street, east side only. 3. 2nd Avenue North: from West Smith Street to West Harrison Street. 4. 2nd Avenue North: from South 228th Street to south end of street. 5. 4th Avenue North and South: from SR 516/West Willis Street to South 228th Street. 6. 5th Avenue North: from West James Street to north end of 5th Avenue North. 7. 6th Avenue North: from South 228th Street to south end of street. 8. 6th Avenue South: from West Meeker Street to West Gowe Street. 3 Amend KCC 9.38.020 - Re: No Parking Zones 9. 26th Avenue South: both sides from South 272nd Street to 500 feet north of South 272nd Street and on 26th Avenue South from South 272nd Street to end of 26th Avenue South, east side only. 10. 27th Avenue South: from South 240th Street to end of 27th Avenue South. 11. 27th Place South: from South 259th Place north to South 256th Street. 12. 28th Avenue South: from South 240th Street to end of 28th Avenue South. 13. 30th Avenue South: from South 240th Street to Kent-Des Moines Road (SR 516). 14. 36th Place South: from South 272nd Street to 35th Lane South. 15. 42nd Avenue South: from Reith Road to South 260th Street. 16. 43rd Avenue South: the cul-de-sac north of 42nd Place S. and the attached spur road to the north. 17. 54th Avenue South: from South 228th Street to South 226th Street. 18. 58th Place South: from Russell Road to South 194th Street. 19. 58th Place South: from South 226th Street to south end of 58th Place South. 20. 62nd Avenue South: from South 190th Street to South 196th Street. 21. 64th Avenue South: from south end of road to South 212th Street. 22. 66th Avenue South: from South 196th Street to South 190th Street. 23. 72nd/70th Avenue South: from South 228th Street to South 180th Street (43rd Avenue South). 24. 72nd Avenue South: from South 262nd Street to South 277th Street. 4 Amend KCC 9.38.020 - Re: No Parking Zones 25. 74th Avenue South: from South 259th Street to West Willis Street (SR 516). 26. 76th Avenue South: from South 228th Street to South 212th Street. 27. 77th Avenue South: from South 212th Street to north end of road. 28. 80th Avenue South: from South 180th Street (43rd Avenue South) to South 196th Street, and 80th Avenue South from South 200th Street to South 208th Street. 29. 80th Place South: from 80th Avenue South to 84th Avenue South. 30. 81st Avenue South: from South 200th Street to South 196th Street. 31. 83rd Avenue South: from South 228th Street to South 224th Street. 32. 84th Avenue South/East Valley Highway/Central Avenue North/Central Avenue South: from South 180th Street (43rd Avenue South) to the Green River Bridge. 33. 88th Avenue South: from East James Street to South 218th Street. 34. 94th Avenue South: from Canyon Drive to South 240th Street. 35. 97th Place South: from Canyon Drive to 100th Avenue Southeast. 36. 100th Avenue Southeast: from Southeast 248th Street to Southeast 218th Street. 37. 101st Avenue Southeast: from Southeast 256th Street (SR 516) to Southeast 260th Street. 38. 102nd Avenue Southeast: from Southeast 240th Street to the north end of 102nd Avenue Southeast. 5 Amend KCC 9.38.020 - Re: No Parking Zones 39. 104th Avenue Southeast (SR 515): from Southeast 272nd Street to north city limits. 40. 108th Avenue Southeast: from Southeast 281st Street to Kent-Kangley Road (SR 516). 41. 108th Avenue Southeast: from Southeast 244th Street to Southeast 236th Place. 42. 109th Avenue Southeast: from Southeast 256th Street to Southeast 248th Street. 43. 112th Avenue Southeast: from south end of 112th Avenue Southeast to Southeast 232nd Street. 44. 114th Avenue Southeast: from Kent-Kangley Road to south end of street. 45. 116th Avenue Southeast: from Southeast 227th Place to Southeast 274th Way. 46. 116th Avenue Southeast: from Southeast 248th Street to Southeast 256th Street, west side only. 47. 117th Avenue Southeast: from Southeast 244th Street to end of street. 48. 118th Court Southeast: from Southeast 244th Street to end of street. 49. 119th Court Southeast: from Southeast 244th Street to end of street. 50. 119th Way/120th Place Southeast: from Southeast 244th Street to Southeast 244th Street. 51. 120th Avenue Southeast: from the gate on Southeast 268th Street to Southeast 270th Street, north and east sides only. 52. 124th Avenue Southeast: from Southeast 248th Street to Southeast 282nd Street. 53. 128th Avenue Southeast: from Southeast 226th Place to Southeast 227th Street, west side only. 6 Amend KCC 9.38.020 - Re: No Parking Zones 54. 128th Avenue Southeast/Southeast 227th Street: on the curve from 128th Avenue Southeast to Southeast 227th Street, northeast side only. 55. 128th Place Southeast: from Southeast 226th Place to Southeast 227th Street, east side only. 56. 129th Place Southeast: from 70 feet north of Southeast 225th Court to Southeast 225th Court, west side only. 57. 129th Place Southeast: from 120 feet south of Southeast 225th Court to Southeast 226th Place, east side only. 58. 129th Place Southeast: from Southeast 226th Place to 185 feet north of end of road, west side only. 5359. 132nd Avenue Southeast: from Southeast 236th Street to Southeast 288th Street. 60. 132nd Place Southeast: from Southeast 227th Street to Southeast 227th Place, east side only. 61. 133rd Place Southeast: from Southeast 226th Street to Southeast 227th Street, west side only. 62. 134th Place Southeast: from Southeast 224th Place to Southeast 225th Place, east side only. 63. 134th Place Southeast: from Southeast 227th Street to Southeast 227th Place, east side only. 64. 135th Avenue Southeast: from Southeast 252nd Street to Southeast 253rd Place, west side only. 5465. 140th Avenue Southeast: from Southeast 256th Street to Southeast 260th Street. 5566. 144th Avenue Southeast: from Kent-Kangley Road (SR 516) to Southeast 288th Street. 5667. 148th Avenue Southeast: from Southeast 256th Street to Southeast 240th Street. 6857. 148th Avenue Southeast/152nd Way Southeast: from north city boat ramp to Kent-Kangley Road (SR 516). 7 Amend KCC 9.38.020 - Re: No Parking Zones 5869. 152nd Avenue Southeast/152nd Way Southeast: from Kent- Kangley Road (SR 516) to SR 18. 5970. Alder Lane/South 262nd Street: from Central Avenue South to 500 feet east of Central Avenue South. 6071. Cambridge Way: 200 feet south of South 262nd Street, west side only. 6172. East Canyon Drive: from Hazel Avenue North to 101st Avenue Southeast. 6273. East Gowe Street/West Gowe Street: from Railroad Avenue South to 1st Avenue South. 6374. East Gowe Street: from Railroad Avenue South to Central Avenue South, south side only, and from Central Avenue South to Kennebeck Avenue South. 6475. East Harrison Street: from 140 feet west of 4th Avenue North to 4th Avenue North, south side only. 6576. East Meeker Street/West Meeker Street: from Railroad Avenue South to 1st Avenue South. 6677. East Pioneer Street: from 170 feet east of Central Avenue to State Avenue, south side only, and from Central Avenue South to 200 feet east of Central Avenue, north side only. 6778. East Pioneer Street: from Railroad Avenue North to Central Avenue North. 6879. East Titus Street: from 3rd Avenue South to 4th Avenue South, north side only; police vehicle parking only. 6980. East Titus Street: from West Gowe Street to Reiten Road South, southeast side only. 7081. East Titus Street/West Titus Street: from Railroad Avenue South to 1st Avenue South. 7182. East Titus Street: from East Smith Street to Reiten Road South. 8 Amend KCC 9.38.020 - Re: No Parking Zones 7283. Frager Road South: from West Meeker Street to South 204th Street. 7384. Interurban Trail Street: from Meeker Street to Smith Street. 7485. Kennebeck Avenue South: from East Smith Street to East Ward Street. 7586. Lake Fenwick Road: from South Reith Road to South 272nd Street. 7687. Lakeside Boulevard East: from South 240th Street to South 228th Street. 7788. Lakeside Boulevard West: from Lakeside Boulevard East to South 228th Street. 7889. Landing Way: from 64th Avenue South to West Valley Highway. 7990. Lincoln Avenue North: from West Meeker Street to West James Street. 8091. Maple Street South: from Woodland Way South to Garfield Avenue South, south side only. 8192. Military Road South/36th Avenue South/Military Road South: from South 228th Street to South 272nd Street. 8293. Novak Lane: from Central Avenue to west end of street. 8394. Ramsay Way: from 4th Avenue North to 230 feet east of 4th Avenue North. 8495. Ramsay Way: from 350 feet east of 4th Avenue North to 440 feet east of 4th Avenue North, south side only. 8596. Ramsay Way: from 350 feet east of 4th Avenue North to 480 feet east of 4th Avenue North, north side only. 8697. Ramsay Way: from 520 feet east of 4th Avenue North to 150 feet north of West Temperance Street. 8798. Ramsay Way: from West Temperance Street to West Smith Street. 9 Amend KCC 9.38.020 - Re: No Parking Zones 8899. Riverview Boulevard: from South 216th Street to South 232nd Street. 89100. Russell Road South: from end of street at Green River Trail to West James Street. 90101. Russell Road South: from South 228th Street to South 212th Street. 91102. South 188th Street: from West Valley Highway (SR 181) to 72nd Avenue South, and South 188th Street from a point 960 feet west of 80th Avenue South westerly to the end of the street at the BNSF Railway Company tracks. 92103. South 190th Street: from West Valley Highway to 72nd Avenue South. 93104. South 192nd Street: from the west end of the road to 84th Avenue South. 94105. South 194th Street: from 58th Place South to 66th Avenue South. 95106. South 194th Street: from 84th Avenue South to west end of street at BNSF Railway Company tracks. 96107. South 196th Street/Russell Road/South 200th Street: from 84th Avenue South to the Green River. 97108. South 200th Street: from 80th Avenue South to 84th Avenue South. 98109. South 202nd Street: from 80th Avenue South to west end of street at BNSF Railway Company tracks. 99110. South 204th Street: from West Valley Highway (SR 181) to 72nd Avenue South. 100111. South 206th Street: from 72nd Avenue South to 77th Avenue South. 101112. South 208th Street: from 80th Avenue South to west end of street at BNSF Railway Company tracks. 10 Amend KCC 9.38.020 - Re: No Parking Zones 102113. South 208th Street: from 84th Avenue South to 96th Avenue South. 103114. South 212th Street: from west city limits to east city limits. 104115. South 216th Street: from 64th Avenue South to 72nd Avenue South. 105116. South 216th Street: from 84th Avenue South to the west end at BNSF Railway Company tracks. 106117. South 218th Street: from 84th Avenue South to SR 167. 107118. South 220th Street: from West Valley Highway (SR 181) to 72nd Avenue South. 108119. South 222nd Street: from west end at BNSF Railway Company tracks to SR 167. 109120. South 224th Street: from 83rd Avenue South to east end of road. 110121. South 226th Street: from 54th Avenue South to 64th Avenue South. 111122. South 228th Street: from Russell Road South to 83rd Avenue South. 112123. South 231st Way: from Military Road South to Russell Road South. 113124. South 234th Street: from West Valley Highway to east end of street. 114125. South 236th Street: from Lakeside Boulevard East to 64th Avenue South. 115126. South 240th Street: from 27th Avenue South to I-5. 116127. South 252nd Street: from Canyon Drive (SR 516) to east end of road. 117128. South 256th Street: from 27th Place South east to the traffic control gate. 11 Amend KCC 9.38.020 - Re: No Parking Zones 118129. South 259th Street: from 74th Avenue South to east city limits. 119130. South 260th Street/South 259th Place South/Reith Road South: from SR 99 (Pacific Highway South) to Kent-Des Moines Road (SR 516). 120131. South 268th Street: from Military Road South to Princeton Avenue South. 121132. South 272nd Street: from Lake Fenwick Road South to 42nd Avenue South, north side only. 122133. South 277th Street and Southeast 274th Way: from 700 feet east of L Street NE to 116th Avenue Southeast. 123134. South Central Place: from South 266th Street to the end of South Central Place. 135. Southeast 211th Street: from 160 feet east of 127th Place Southeast to end of street, north side only. 136. Southeast 224th Place: from 133rd Avenue Southeast to 134th Place Southeast, south side only. 137. Southeast 225th Court: from 60 feet south of end of road to 129th Place Southeast, southwest side only. 138. Southeast 225th Place: from 132nd Place Southeast to 133rd Avenue Southeast, north side only. 139. Southeast 226th Place: from 130 feet east of 127th Avenue Southeast to 128th Avenue Southeast, south side only. 140. Southeast 226th Place: from 128th Avenue Southeast to 129th Place Southeast, north side only. 141. Southeast 227th Street: from 128th Avenue Southeast to 128th Place Southeast, south side only. 142. Southeast 227th Street/128th Place Southeast: on the curve from Southeast 227th Street to 128th Place Southeast, northwest side only. 143. Southeast 227th Street: from 132nd Place Southeast to 134th Place Southeast, south side only. 12 Amend KCC 9.38.020 - Re: No Parking Zones 124144. Southeast 236th Street: from 104th Avenue Southeast (SR 515) to 108th Avenue Southeast, south side only. 125145. Southeast 239th Street: from 102nd Avenue Southeast to 104th Avenue Southeast. 126146. Southeast 244th Street: from 120th Avenue Southeast to 116th Avenue Southeast. 127147. Southeast 248th Street: from 104th Avenue Southeast to 116th Avenue Southeast, south side only. 128148. Southeast 248th Street: in front of George Daniels Elementary School. 149. Southeast 252nd Street: from 200 feet west of 133rd Place Southeast to 135th Avenue Southeast, north side only. 150. Southeast 253rd Place: from 90 feet west of 135th Avenue Southeast to 136th Avenue East, south side only. 129151. Southeast 256th Street: from 101st Avenue Southeast to 148th Avenue Southeast. 130152. Southeast 260th Street: from 100th Avenue Southeast/97th Place South to 108th Avenue Southeast. 131153. Southeast 264th Street: from 124th Avenue Southeast to 127th Avenue Southeast, north side only. 132154. Southeast 267th Street: from 102nd Avenue Southeast to 104th Avenue Southeast, north side only. 133155. Southeast 282nd Street: from 132nd Avenue Southeast to 144th Avenue Southeast. 134156. SR 99 (Pacific Highway South): from Kent-Des Moines Road (SR 516) to South 272nd Street. 135157. West Cloudy Street: from 4th Avenue North to 5th Avenue North. 136158. West Gowe Street: from 6th Avenue South to 300 feet east of 6th Avenue South. 13 Amend KCC 9.38.020 - Re: No Parking Zones 137159. West James Street/East James Street/South 240th Street/Southeast 240th Street: from Russell Road to 148th Avenue Southeast. 138160. West Meeker Street: from Kent-Des Moines Road (SR 516) to 6th Avenue South. 139161. West Saar Street: from west end of street to 4th Avenue South, south side only. 140162. West Sam Street: from West Valley Highway (SR 181/Washington Avenue) to end of street. 141163. West Smith Street/East Smith Street: from 64th Avenue South to Jason Avenue South. 142164. West Temperance Street: from Ramsay Way to 1st Avenue North. 143165. West Valley Highway South/Washington Avenue South/Washington Avenue North/68th Avenue South: from south city limits to north city limits. 144166. West Willis Street/East Willis Street: from 4th Avenue South to Central Avenue South. 145167. Woodland Way South: from East Maple Street to South 262nd Street. 146. Southeast 224th Place: from 133rd Avenue Southeast to 134th Place Southeast, south side only. 147. Southeast 225th Place: from 132nd Place Southeast to 133rd Avenue Southeast, north side only. 148. Southeast 227th Street: from 132nd Place Southeast to 134th Place Southeast, south side only. 149. 132nd Place Southeast: from Southeast 227th Street to Southeast 227th Place, east side only. 150. 133rd Place Southeast: from Southeast 226th Street to Southeast 227th Street, west side only. 14 Amend KCC 9.38.020 - Re: No Parking Zones 151. 134th Place Southeast: from Southeast 224th Place to Southeast 225th Place, east side only. 152. 134th Place Southeast: from Southeast 227th Street to Southeast 227th Place, east side only. B. Penalty. Any violation of the provisions of this section shall be an infraction punishable by a monetary penalty of $50.00. Vehicles parked in violation of this section are subject to impoundment as provided by law. SECTION 2. – Severability. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 3. – Corrections by City Clerk or Code Reviser. Upon approval of the city attorney, the city clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. SECTION 4. – Effective Date. This ordinance shall take effect and be in force thirty days from and after its passage, as provided by law. DANA RALPH, MAYOR Date Approved ATTEST: KIMBERLEY A. KOMOTO, CITY CLERK Date Adopted Date Published 15 Amend KCC 9.38.020 - Re: No Parking Zones APPROVED AS TO FORM: ARTHUR “PAT” FITZPATRICK, CITY ATTORNEY This page intentionally left blank. Agenda Item: Consent Calendar – 8H_ TO: City Council DATE: July 3, 2018 SUBJECT: Code Enforcement Civil Infractions Ordinance – Adopt SUMMARY: Currently, in order to assess fines for civil code violations, staff must prepare detailed and customized notification documents. These documents are prepared for about 60% of all code enforcement cases and require code enforcement officers to spend about half of their time in the office. Staff attorneys review each document for accuracy, which requires a major time commitment. In addition to being labor-intensive, the current process creates a series of deadlines that stretch the time required for violators to comply. Each month, a handful of unresolved cases are reviewed in an open hearing before the City’s Hearing Examiner, which is an additional cost to the City. Civil infractions are authorized under state law for non-criminal violations, are patterned after the traffic infraction system, and are processed through the municipal court. The process is more streamlined and efficient than the current hearing examiner process. This ordinance would provide staff with an additional enforcement tool that is anticipated to result in faster compliance with less staff time required to resolve each complaint. The ordinance also clarifies when criminal charges may be pursued for code violations. At its June 11, 2018, meeting, the Economic and Community Development Committee unanimously recommended Council adopt the proposed ordinance. After the Committee recommended adoption, the City Attorney’s Office made two changes that did not substantively affect the ordinance’s content. Those changes are as follows: (1) KCC 1.04.030(B)(2)(a) was revised to clarify that a prior criminal conviction on a code enforcement matter will also qualify as a prior offense and authorize new criminal charges if the person responsible for the violation later commits a repeated violation; and (2) KCC 1.04.225(A) was revised to clarify that a code enforcement officer, which would also include a law enforcement officer, is authorized to issue civil infractions. EXHIBITS: Ordinance YEA: Boyce, Kaur, and Troutner NAY: BUDGET IMPACT: None, but staffing efficiencies expected STRATEGIC PLAN GOAL(S): ☒ Innovative Government - Empowering responsible citizen engagement, providing outstanding customer service, leveraging technologies, and fostering new opportunities and industries that benefit our community. ☒ Authentic Connectivity and Communication - Uniting people to people, to places, and to their government through superior infrastructure, enriched community interactions, and responsive, trusting relationships. ☒ Thriving Neighborhoods and Urban Centers - Creating vibrant urban centers, welcoming neighborhoods, and green spaces for healthy growth and cultural celebration. MOTION: Adopt Ordinance No. _______ amending the Kent City Code to allow for civil infractions as an enforcement tool in code enforcement matters, and to clarify when criminal charges may be filed in code enforcement matters. This page intentionally left blank. 1 Amend Kent City Code - Code Enforcement Penalties ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, amending the following provisions of the Kent City Code (KCC) to allow for civil infractions as an enforcement tool in code enforcement matters, in addition to other existing civil and criminal penalties, and to clarify when and what level of criminal charges may be brought for violations of the KCC: Chapter 1.04 KCC, KCC 8.01.050, KCC 8.04.190, KCC 8.07.080, KCC 8.08.060, KCC 13.02.090, KCC 14.08.240, and KCC 15.10.070. RECITALS A. Chapter 1.04 of the Kent City Code establishes a system for enforcing city regulations. The purpose of the code enforcement chapter is to provide a system where violations will be promptly resolved while providing both appropriate penalties and a full opportunity for alleged violators to have a hearing to contest the violations. B. Currently, the system established by Chapter 1.04 of the Kent City Code allows for two primary enforcement mechanisms – a civil action before the City’s hearing examiner and a criminal misdemeanor action in Kent Municipal Court. While the criminal misdemeanor process can be effective for certain types of major violations, there are many less severe cases where filing criminal charges is not appropriate. The heading examiner process involves extensive paperwork and does not allow for 2 Amend Kent City Code - Code Enforcement Penalties prompt and expedient resolution of code violations. Both existing processes use significant staff resources. C. Code enforcement matters have steadily increased over the last few years, growing from 93 active cases in 2014 to 544 active cases in 2017. Given the steady increase in code enforcement cases, it is critical to adopt a new enforcement tool that allows for prompt resolution while preserving staff resources. D. This ordinance amends Chapter 1.04 of the Kent City Code, as well as several other sections of the code that contemplate penalties for violations, to add civil infractions as an available enforcement mechanism where the existing enforcement tools are not a good fit for the violation. This ordinance does not repeal the other enforcement options and leaves them in place and unaffected by this amending ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. – Amendment – KCC 1.04.030. Section 1.04.030 of the Kent City Code, entitled “Violation unlawful—Each day is separate violation—Misdemeanor,” is amended as follows: Sec. 1.04.030. Violation unlawful – Each day is separate violation – MisdemeanorCriminal Offense. A. Separate Violations. The violation of any regulation shall be unlawful. A violation continues to exist until abated to the satisfaction of the City, with Eeach day, or portion thereof, in which the violation continues constitutinges a separate offense subjecting the person responsible for the violation to the civil and criminal penalties provided for in this chapter. for which separate notices of violation may be issued. 3 Amend Kent City Code - Code Enforcement Penalties B. MisdemeanorCriminal Offense. In addition to other penalties provided for by this chapter, a person who: any violation of this chapter shall constitute a misdemeanor; and the city attorney, or the city attorney’s designee, shall, at his or her discretion, have authority to file a violation as either a civil violation pursuant to this chapter, or as a criminal misdemeanor punishable by imprisonment in jail for a maximum term fixed by the court of not more than ninety (90) days, or by a fine in an amount fixed by the court of not more than one thousand dollars ($1,000), or by both such imprisonment and fine. All criminal misdemeanor charges filed under this chapter shall be filed with the Kent municipal court. When the city files criminal misdemeanor charges pursuant to this chapter, the city shall have the burden of proving, beyond a reasonable doubt, that the violation occurred. 1. Negligently violates a provision of the Kent City Code is guilty of a misdemeanor, punishable by up to the maximum penalty established in RCW 9A.20.021(3) as now enacted or hereafter amended; or who 2. Knowingly violates a provision of the Kent City Code, or commits a repeated violation of the Kent City Code, is guilty of a gross misdemeanor, punishable by up to the maximum penalty established in RCW 9A.20.021(2), as now enacted or hereafter amended. a. For purposes of this section repeated violation means, as evidenced by either a prior criminal conviction, a prior committed finding by the Kent Municipal Court of an infraction issued under this Chapter, or a prior committed finding by operation of law under KCC 1.04.130, that a violation of the Kent City Code has occurred on the same property or that a person responsible for the violation has committed a violation of the Kent City Code elsewhere within the city of Kent. To constitute a “repeat violation,” the violation need not be the same violation as the prior violation. 3. If a person is found guilty of a criminal offense as provided for in this subsection (B), or pleads guilty to another offense on 4 Amend Kent City Code - Code Enforcement Penalties recommendation of the prosecutor, the court shall order the defendant pay restitution to the city of Kent, or any other victim of the offense, for the total suffered loss or damage by reason of the commission of the crime. SECTION 2. – Amendment – New KCC 1.04.225. Chapter 1.04 of the Kent City Code, entitled “Code Enforcement,” is amended to add a new section 1.04.225, entitled “Civil Infractions,” as follows: Sec. 1.04.225. Civil Infractions. A. In addition to, or as an alternative to any other penalty provided for in this chapter or by law, a code enforcement officer may issue to any person who violates any provision of the Kent City Code a class 1 civil infraction as set forth in RCW 7.80.120, as currently enacted or hereafter amended. An infraction issued pursuant to this section shall be filed in the Kent Municipal Court and processed in the same manner as other infractions filed in the Kent Municipal Court. B. Payment of a monetary penalty shall not relieve a person of the duty to correct the violation. SECTION 3. – Amendment – Revise KCC 8.01.050. Section 8.01.050 of the Kent City Code, entitled “Violation – Penalty,” is amended as follows: Sec. 8.01.050. Violation – Penalty. A. Civil code enforcement action. Any violation of any provision of this chapter constitutes a civil violation under Chapter 1.04 KCC for which a monetary penalty may be assessed and abatement may be required as provided therein. For a violation involving a chronic criminal nuisance, a correction letter need not be issued under KCC 1.04.070 prior to the issuance of a notice of violation and the immediate assessment of a civil penalty under KCC 1.04.080. 5 Amend Kent City Code - Code Enforcement Penalties B. Criminal charge – Misdemeanoroffense. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of the Kent City Code may be charged criminally, pursuant to KCC 1.04.030(B). violates any provision of this chapter shall be guilty of a misdemeanor, punishable by imprisonment in jail for a maximum term fixed by the court of not more than ninety (90) days, or by a fine in an amount fixed by the court of not more than one thousand dollars ($1,000), or by both such imprisonment and fine. C. Civil infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this Chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. DC. Abatement proceedings. As an alternative to any other penalty provided in this chapter, abatement proceedings may be instituted under RCW Title 7. ED. Repeat violation or failure to abate – Criminal misdemeanor charge – Chronic criminal nuisance. For the purpose of filing criminal charges under KCC 1.04.220 for a subsequent violation after a prior violation is deemed committed, the subsequent violation for a chronic criminal nuisance must occur within one hundred eighty (180) days from the date the prior violation was deemed committed. For a chronic criminal nuisance, a subsequent violation is a single occurrence of criminal conduct. / / / / / / / / 6 Amend Kent City Code - Code Enforcement Penalties SECTION 4. – Amendment – Revise KCC 8.04.190. Section 8.04.190 of the Kent City Code entitled “Violation – Penalty” is amended as follows: Sec. 8.04.190 Violation – Penalty. A. Every person, entity, or corporation violating or failing to comply with any of the provisions of this chapter shall be subject to a civil penalty, deemed to be an infraction, in the amount of one hundred dollars ($100) for each such violation. Each day the violation exists shall be considered a separate violation.Civil code enforcement action. Any violation of any provision of this chapter constitutes a civil violation under Chapter 1.04 KCC for which a monetary penalty may be assessed and abatement may be required as provided therein. B. Criminal offense. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this chapter may be charged criminally, pursuant to KCC 1.04.030(B).shall be guilty of a misdemeanor pursuant to KCC 1.01.140. C. Civil Infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. SECTION 5. – Amendment – Revise KCC 8.07.080. Section 8.07.080 of the Kent City Code entitled “Violation – Penalty” is amended as follows: Sec. 8.07.080 Violation – Penalty. A. Civil code enforcement action. Any violation of any provision of this chapter constitutes a civil violation under Ch. 1.04 KCC for which a 7 Amend Kent City Code - Code Enforcement Penalties monetary penalty may be assessed and abatement may be required as provided therein. B. Criminal offense. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of the Kent City Code may be charged criminally, pursuant to KCC 1.04.030(B)this chapter shall be guilty of a misdemeanor pursuant to KCC 1.01.140. C. Civil Infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this Chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. SECTION 6. – Amendment – Revise KCC 8.08.060. Section 8.08.060 of the Kent City Code entitled “Violation – Penalty” is amended as follows: Sec. 8.08.060 Violation – Penalty. A. Civil code enforcement action. Any violation of any provision of this chapter is a civil violation as provided for in Ch. 1.04 KCC, for which a monetary penalty may be assessed and abatement may be required as provided therein. B. Criminal offense. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this chapterthe Kent City Code, shall be guilty of a misdemeanor pursuant to KCC 1.01.140 may be charged criminally, pursuant to KCC 1.04.030(B). C. Civil Infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any 8 Amend Kent City Code - Code Enforcement Penalties provision of this Chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. SECTION 7. – Amendment – Revise KCC 13.02.090. Section 13.02.090 of the Kent City Code entitled “Violation – Penalty” is amended as follows: Sec. 13.02.090. Violation – Penalty. A. Civil code enforcement action. Any Vviolation of any provision of this title constitutes a civil violation under Ch. 1.04 KCC for which a monetary penalty may be assessed and abatement may be required and/or otherwise enforced as provided therein. B. Criminal offense. In addition to or as an alternative to any other enforcement procedure or penalty provided in this chapter, a violation of any provision of this chapter or a code enforced by this chapter shall constitute a misdemeanor pursuant to Ch. 1.04 KCC or by law, any person who violates any provision of the Kent City Code may be charged criminally, pursuant to KCC 1.04.030(B). C. Civil Infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this Chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. CD. Separate offense. Each day, or portion thereof, that a violation continues to exist shall be considered a separate offense. SECTION 8. – Amendment – Revise KCC 14.08.240. Section 14.08.240 of the Kent City Code entitled “Violation – Penalty” is amended as follows: 9 Amend Kent City Code - Code Enforcement Penalties Sec. 14.08.240. Violation – Penalty. A. Civil code enforcement action. Any violation of any provision of a building code enforced under this chapter constitutes a civil violation under Ch. 1.04 KCC for which a monetary penalty may be assessed and abatement may be required and/or otherwise enforced as provided therein. B. Criminal offense. In addition to or as an alternative to any other enforcement procedure or penalty in this chapter,provided in this chapter or by law, any person who violates any provision of the Kent City Code may be charged criminally, pursuant to KCC 1.04.030(B). a violation of any provision of this chapter or a code enforced by this chapter shall constitute a misdemeanor punishable by imprisonment in jail for a maximum term fixed by the court of not more than ninety (90) days, or by a fine in an amount fixed by the court of not more than one thousand dollars ($1,000), or by both such imprisonment and fine. All misdemeanor charges filed under this title shall be filed with the Kent municipal court and shall bear the signature of the Kent city attorney or his or her designee. When the city files a criminal offense pursuant to this subsection, it shall have the burden of proving, beyond a reasonable doubt, that the violation occurred. C. Civil Infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this Chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. D. Each day that anyone shall continue to violate or fail to comply with any of the foregoing provisions shall be considered a separate offense. 10 Amend Kent City Code - Code Enforcement Penalties SECTION 9. – Amendment – Revise KCC 15.10.070. Section 15.10.070 of the Kent City Code entitled “Violation – Penalty” is amended as follows: Sec. 15.10.070 Violation – Penalty. A. Civil code enforcement action. Any violation of any provision of this chapter constitutes a civil violation under Ch. 1.04 KCC for which a monetary penalty may be assessed and abatement may be required as provided therein. B. Criminal offense. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of the Kent City Code may be charged criminally, pursuant to KCC 1.04.030(B). violating or failing to comply with any of the provisions of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punishable in accordance with the provisions of KCC 1.01.140 relating to criminal penalties for misdemeanors. C. Civil Infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this Chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. SECTION 10. – Severability. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 11. – Corrections by City Clerk or Code Reviser. Upon approval of the city attorney, the city clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the 11 Amend Kent City Code - Code Enforcement Penalties correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. SECTION 12. – Effective Date. This ordinance shall take effect and be in force thirty days from and after its passage as provided by law. DANA RALPH, MAYOR Date Approved ATTEST: KIMBERLEY A. KOMOTO, CITY CLERK Date Adopted Date Published APPROVED AS TO FORM: ARTHUR “PAT” FITZPATRICK, CITY ATTORNEY This page intentionally left blank. Agenda Item: Consent Calendar – 8I_ TO: City Council DATE: July 3, 2018 SUBJECT: WSDOT Grant Funds for Roundabout at Willis Street (SR 516) and 4th Avenue South – Authorize SUMMARY: Kent owns the Naden site between SR167 and the Interurban Trail. Access to the Naden property is currently limited to Meeker Street to the north. Access to Willis Street on the south is needed to make the property more marketable for development. The Washington State Department of Transportation (WSDOT) owns the access rights to Willis Street from Washington Avenue east to 4th Avenue South. The City of Kent has been working to obtain an access break for the Naden property. WSDOT has granted preliminary approval of a right in/right out access break from the Naden site to Willis Street, provided, the City pursue the installation of a roundabout at 4th Avenue and Willis Street. Kent included the 4th Avenue and Willis Street Roundabout in the 2018-2023 Transportation Improvement Plan. The City also pursued funding options through the state legislature in 2018 and was successful. The Washington State 2018 Supplemental Transportation Budget included $3 Million for the design and construction of a roundabout at 4th Avenue and Willis Street. EXHIBITS: Funding letter from WSDOT dated March 28, 2018 RECOMMENDED BY: Public Works Committee YEA: Troutner, Fincher, Higgins NAY: BUDGET IMPACTS: None STRATEGIC PLAN GOAL(S): ☒ Authentic Connectivity and Communication - Uniting people to people, to places, and to their government through superior infrastructure, enriched community interactions, and responsive, trusting relationships. ☒ Thriving Neighborhoods and Urban Centers - Creating vibrant urban centers, welcoming neighborhoods, and green spaces for healthy growth and cultural celebration. ☒ Inclusive Community - Embracing the power of our diversity by encouraging community participation and creating a strong sense of belonging. MOTION: Authorize the Mayor to sign all documents necessary to accept $3 Million in grant funds from the Washington State Department of Transportation for construction of a roundabout at Willis Street (SR516) and 4th Avenue South, amend the budget and authorize expenditure of the funds, subject to terms and conditions acceptable to the Public Works Director and City Attorney. This page intentionally left blank. ^-.w Itlarhlnglon $tate Department of llansportation Transportation Building 310 Maple Park Avenue S,E. PO. Box 47300 Olympia, WA 98504-7300 360-705-7000 TTY: 1 -800-833-6388 www. wsdot, wa. gov CITY OF KENT l\Piì û r 2üiü Et'üßIl.l[[RII.JC DIPllRTll4El\lT March 28,2018 Mr. Tim LaPorte Public Works Director City of Kent 220 Fourth Avenue South Kent, WA 98032-5838 lVillis St (SR 516) and 4rh Ave Roundabout 20f 8 Supplemental Transportation Budget State Funding Dear Mr. WSDOT is pleased to advise you that the above mentioned project was selected to receive funding through the 2018 Supplemental Transportation Budget. The state funding is limited as shown below: Willis St (SR 516) and 4il'Ave Roundabout g3,000,000 Scope: Construction of a roundabout at the 4th Avenue and Willis Street intersection. In order to meet state requirements, the following are required:. Project expenditures incurred before receiving notice from Local Programs of state fund authorization are not eligible for reimbursement.¡ Please refer to the Local Progmms web page for detailed authorization information, including: (http://www.wsdot.wa. govllocalproqrams/) '/ Local Agency Guidelines (LAG) manual for detailed requirements;'/ 'l'ransporlation Improvement Program (TIP) and Statewide Transportation lnrprovoment Program (STIP) amendments, as applicable;/ Funding and billing forms; '/ Quarterly Project Report required to be completed by the end of March, June, September and December each year. To access the database you will need an account name and password. Your account name is Kcnt and your password is Kent29l. The password is case sensitive. As a reminder, Local Programs encourages all agencies to submit monthly progress billings to ensure timely reimbursement of eligible expenditures. For assistance please contact Mehrdad Moini, your Region Local Programs Engineer, at 206.440,4734. Sincerely, Dírector LocalPrograms KBD:st:sascç: PSRC, Kelly McGourty, Transportation Dircctor Mehrdad Moini, Northwest Region Looal Programs Engineer, MS NB82-l2l + This page intentionally left blank. Agenda Item: Consent Calendar – 8J_ TO: City Council DATE: July 3, 2018 SUBJECT: Lease Agreement with NC Machinery for Excavator – Authorize SUMMARY: The Street Department concrete crew has been renting a Caterpillar 308 mini-excavator that is necessary for its daily work. It would be financially beneficial for the City to purchase a new unit using the Municipal Lease/Purchase program through Caterpillar, which would allow the City to own the machine at the end of the 60-month lease term. This would allow the City to discontinue the current monthly rental expense of $4,252 and replace it with a $2,843 per month lease/purchase expense. The life cycle expectancy for the excavator would be 15 years. The concrete crew uses the excavator to remove large concrete sidewalk panels, loads the debris into dump trucks, excavates and prepares the site for new sidewalks and concrete slab work. This is a critical unit in their operations and provides them with the best effective method to complete their job tasks. The Municipal Lease/Purchase program would save the City $1,409 per month with the added benefit of owning the machine at end of the lease agreement. EXHIBITS: Lease to Purchase Agreement RECOMMENDED BY: Public Works Committee YEA: Fincher, Troutner, Higgins NAY: BUDGET IMPACTS: B&O Funding (Rental Budget) STRATEGIC PLAN GOAL(S): ☒ Sustainable Funding - Maximizing long-term financial success through responsible fiscal oversight, economic growth, and community partnerships. MOTION: Authorize the Mayor to sign all necessary documents, including a Lease to Purchase Agreement, with NC Machinery for a new Caterpillar 308E2 mini-excavator in an amount not to exceed $174,000 payable over 5 years, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. flE MN8Hil]TETY Purchaser's Order DATE Quote No. May 15, 2018 146532 S PURCHASER g STREET ADDRESS L CITY/STATE D POSTALCODE 1 CUSTOIMERCONTACTT o truoustRYcooe, LCOUNTY KTNG 220 4TH AVE S WORK CODE < SAME > PRODUCT SUPPORT qRo1, q81R PHONE NO. EQUIP|\ilENT H I P s462200CUSTOI\4ER NUM BER Sales Tax Exemption # (if applicable) N/A CUSTOMER PO NUI\4BER T E R tvl S OPTIONAL BUY-OUT ale csc s0.00 FINANCIAL SERVICES PAYIiIENT TER[/S] PAYI\4ENT PERIOD NET PAYMENT ON RECEIPT OF INVOICE CASH WTH ORDER lerms and LEASE - oActo Finance LKE Assignment PAYMENT AIVIOUNT BALANCE TO FINANCE NET ON DELIVERY INTEREST RATE NUIlI8ER OF PAYIUENTS DESCRIPTION OF EQUIPMENT ORDERED / PURCHASED IVIAKE; TBA MODEL:30882 YEAR: TBA 3OgE2 HEXMN CFG 2 COUNTERWEICHT, EXTRA PINS, BUCKBT INCLUDES:TANK, FUEL LINES, CONNECTING 397-7005 308E2 HYDRAULIC EXCAVATOR LIGHTS, LED i HAIUIMER, HSoEs 39'I '] 065 LINES. STICK BLADE, 91'', BOLT-ON BRACKET, MHE gT 5OMM, XL 39?-7088 I.INES, BOOM SERIALIZED TECHNICAL MEDIA KIT LINES. CONNECTOR 397-']!3O CONTROI,, PATTERN CHANGER HYDRAULICS, AUX.,QC, (L STK)TOOL, MOIL HBOE 398-5354 ALARM, TRAVEL ROTATING BEACON 415-4380 ENGINE, EPA TIER 4 FTNAL, EU STAGE 38 GUARD, S',1IVEL 415-5033 BELT, SEAT, 76MM(3') RETRACTABLE BUCKET HD. 24' O.30 YD3 415 504o RADro, Alvr/FM THUMB,HYD + COUPLER,PG,HYD, 8T 342 -7602 INSTALLATION AR COUPLER, PG, HYDR.D.LOCK, BT 382-B'15'I DRAIN, ECOLOGY 308BKT48CO BLUB STAR PROGRESSIVE THUMB TRACK,45OMM TG W/RUBBER PAD STICK PKG, I,ONG W/BKT LINKAGE CVP4O COMPACTOR PLATE PRODUCT LINK, CELLULAR, PL24O BRACKET, MHE BT 5OMM, XL SELI, PRICE sr-57, 098.00 NET BAIJANCE DUE $1s7,098.00 BA],ANCE s1s7.098.00 [4ODEL: PAYOUT TO: [4ODELl PAYOUT TO: [4ODEL: PAYOUT TO: fuIODEL: PAYOIJT TO: ALL TRADES.INS ARE SUBJECT TO EQUIPI\4ENT BEING IN'AS INSPECTED CONDITION' 8Y VENDOR AT TIIVIE OF DELIVERY OF REPLACEIVIENT fuIACHINE PURCHASE ABOVE. YEAR: YEAR: YEAR: BY: BY:_ BY:_ I MUE4N EqUIPMEN I _qN _qN _qN _qN PURCHASER HEREBY SELLS THE TRADE-IN EQUIPI\4ENT DESCRIBED ABOVE TO THE VENDOR AND WARRANTS IT TO BE FREE AND CLEAR OFALL CLAII\4S, LIENS, I\4ORTGAGES AND SECURITY INTEREST EXCEPT AS SHOWN A8OVE. NITIALE] cATERPILLAR EoUIPMENT WARRANTY for taking oil samples at designaled waffanly. interuals The customer acknowledges lhat Scheduled oil sampling (S.O.S.) is wilh lhis waranly. do so may resull in mandatory he has received a copy of the /Caterpillar The customer is from all power train components and failure lo voiding the warranty. Warranty applicable including erperation date where necessary: 48 Month (Premier) NITIAL All used equipment is sold as is where is and no waranty is offered or implied except as specilled herel n usED EQUTPTMENT WARRANTY Warranty applicable: csA: NOTES: ORDER RECEIVED BY PURCHASER REPRESENTATIVE APPRoVED AND AccEPTED oN CITY OF KENT PURCHASER BY SIGNATURE PRINT NAME AND TITLE ADDITIONAL TERMS AND CONDITIONS 1. Terms of Payment: Purchaser agrees to pay the balance shown toggther with any applicable sales, use and similar taxes and governmental charges that are not included within the balance and that are payable by reason of the sale of the Equipment. All payments shall be made to such address as Seller from time to time provides to Purchaser. lf any amount of the Unpaid Balance is not paid when due, Purchaser agrees to pay Seller a charge calculated thereon at the rate of 1.25o/o per month from the date when the delinquent amount was due, or, at Seller's option, a charge equal to 5% of the delinquent amount, provided that the charge shall not exceed the amount the Purchaser can legally obligate itself to pay and Seller can legally collect. 2. Additional Terms and Conditions : This Order is subject to ADDITIONAL TERMS and CONDITIONS including but not limited to DTSCLATMER AND RELEASE AND EXCLUSION OF CONSEQUENTIAL AND OTHER DAIVAGES, all of which Purchaser has read and understands and agrees to. The terms and conditions on all pages of this Order, acknowledges that all of such terms and conditions, including but not limited to such LIMITED WARRANTY AND DISCLAIMER and EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES, were freely negotiated and bargained for with Seller and that Purchaser has agreed to purchase the Equipment subject to these terms and conditions. SELLER'S ACCEPTANCE OF THIS ORDER IS EXPRESSLY CONDITIONED ON PURCHASER'S ASSENT TO ALL OF SUCH TERIVIS AND CONDITIONS. ANY ADDITIONAL OR DIFFERENT TERMS OF CONDITIONS WHICH MAY APPEAR IN ANY COMI\4UNICATION FROIVI PURCHASER, INCLUDING BUT NOT LIMITED TO ANY SEPARATE DOCUMENT SUBMITTED BY PURCHASER IN CONNECTION WTH THE PURCHASE OF THE EQUIPMENT, ARE HEREBY OBJECTED TO AND SHALL NOT BE EFFECTIVE OR BINDING UNLESS SPECIFICALLY ACCEPTED IN WRITING BY SELLER'S SALES/BRANCH MANAGER AND APPROVED IN WRITING BY SELLER'S CREDIT DEPARTMENT, 3. LKE/RENTAL SALE: YES or NO: (circle one) 4. ADDITIONAL DOCUMENTS:lf any portion of the Unpaid Balance is to be paid following delivery of the Equipment. Purchaser agrees to execute and deliver to Seller such security agreements, financing statements, and other documents as Seller may request from time to time in order to permit Seller to oblain and maintain a perfected security interest in the Equipmeht on Terms and Conditions acceptable to Seller. 5. ACCEPTANCE; MODIFICATION: This Order shall be binding on Seller only when it has been both accepted in writing on behalf of Seller by Seller's Sales / Branch Manager and if the Seller is extending credit to the Purchaser or arranging for credit for the Purchaser, approved in writing by Selleis Credit Department. No modifications of the Terms and Conditions of this Order shall be effective or binding upon Seller unless it is in writing and executed by both Seller's Sales / Branch Manger and by Seller's Credit Department. The Terms and Conditions of this Orde-r shall not be modified or otherwise affected by stdtements and actions of sales people orothers unless and until there is such a written modification. 6. SECURITY INTEREST: ln order to secure the payment of the Unpaid Balance. Purchaser grants to Seller a purchase money security interest in the Equipment. This security interest shall be superseded if Purchaser and Seller enter into a separate security agreement covering the Equipment. 7. DELIVERY, INSPECTION, and ACCEPTANCE: The Equipment is sold F.O.B., the F.O.B. location shown on (Page 1) of this Order. Any delivery or shipping dates indicated on (Page 1) are estimated and approximate, and Seller shall not be liable for any delay in delivery, however occasioned. Seller may deliver the Equipment in installments as the equipment becomes available. Title and risk of loss shall pass to Purchaser upon delivery. Delivery of the Equipment to Purchaser shall take place when physical possession of the Equipment is given to Purchaser or to a carrier, or when the Seller receives directions from Purchaser to place the Equipment in storage, whichever first occurs. The securing of the Equipment on board a carrier shall be deemed to occur subsequent to delivery. lf the Equipment is to be shipped, Seller's authorized to execute in Purchaser's name and carrier's standard bill of lading for the Equipment. Without being requiied to do so, Seller may, on behalf of Purchaser, advance the cost of shipping and/or insurance for the Equipment. To the extent not separately included in calculating the Unpaid Balance, Purchaser agrees to immediately reimburse Seller on demand for such cost. Purchaser agrees to inspect each item of Equipment, at it's sble expense, promptly following receipt and will be deemed to have accepted the item unless it notifies Sellerwithin (10) days following receipt, of any claimed discrepancy between the item as described on (Page 1) and the item as received by Purchaser. Any claim for shortages, delays, or damages occuiring after Seller has delivered the Equipment to a carrier shall be made directly to the carrier, and Seller shall have no liability with respect thereto. 8. PERFORMANCE EXCUSED: Seller shall not be liable for Seller's inability to perform any or all of it's obligations hereunder due to causes beyond Seller's control, including but not limited to acts of God, acts of omissions of Purchaser, acts of civil or military authoritieS, fire, weather, strikes or other labor disturbances, civil commotion, war, delays in transportation, late delivery by Selleas suppliers, fuel or other energy shortages, or the inability to obtain necessary labor, materials, supplies, equipment, or manufacturing facilities. lf any such cause results in a delay in performance by Seller, the dates of the performance shall be extended for a period equal to the time lost by reason of the delay, and such extension shall be purchaser's exclusive remedy. 9. NEW and USED EQUIPMENT: The term "New Equipment" means any items of Equipment that are registered or registerable as new equipment for the purposes of the warranty provided by the manufacturer thereof. All other items of Equipment are "Used Equipmenl". Seller does not represent or warrant that items of New Equipmenl are unused or newly manufactured or that they are the most current models available from the manufacturer thereof. l0.LlM|TED WARRANTY and DISCLAIMER: Each item of New Equipment is entitled to the benefits of such warranties as are made in writing by the manufacturer thereof, as set forth on the manufacturer's warranty form in effect at the time this order is accepted by Seller. lf it is expressly noted on (Page 1) of this Order that there is a separate warranty of Seller that applies to one or more specifled item or items of New or Used Equipment, such item or items are entitled to the benefits of such warranty as set forth on Seller's warranty form for such warranty in effect at the time this Order is accepted by Seller, subject to any disclaimers of warranties and limitations of remedies set forth in such form, as well as to the disclaimers of warranties and limitations of remedies set forth below. Purchaser acknowledges receipt of the manufacturers' and, if applicable, Seller's current warranty forms for the items of Equipment purchased under this Order. EXCEpT FoR A WARRANTToF TITLE BY SELLER, SELLER MAKES NO WARRANTY WHATSOEVER WITH RESPECT TO ITEIVS OF USED EQUIPIVIENT, AND PURCHASER AGREES THAT IT HAS PURCHASED ALL SUCH ITEMS'AS IS'WTH ALL FAULTS AND DEFECTS, 1 'I.WARRANTY PROCEDURES: Purchaser shall promptly notiff Seller of any claim under any special warranty (such notice to be in addition to compliance with the procedural requirements of the warranty) and to make the affected item of EQuipment available for inspection by Seller. Any replacements or repairs to be made by Seller as a warranty representative of the manufacturer shall be made at a repair and service facility of Seller or it's desiqnee during reqular business hours, lhe cost of the transportation of the Equipment to and from the service facility of Seller or its designee and the cost of the Selleis personnel traveling to and from the location of the Equipment and related cost shall be borne solely by Purchaser. The failure of any item of Equipment purchased hereunder to fulfill -ny applicable warranties shall not affect the liability of Purchaser to Seller for the purchase price of that item or any other obligation of Purchaser to Seller. 12. DISCLAIMER and RELEASE: THE SOLE AND EXCLUSIVE REMEDY OF PURCHASER FOR DEFECTIVE ITEI\4S oF NEW EQUIPMENT SHALL BE AS PRoVIDED IN THE MANUFACTURER'S WARRANTY, ANY OTHER RIGHTS PROVIDED BY LAW AGAINST THE MANUFACTURER, AND ANY APPLICABLE SELLER'S WARRANTY REFERRED TO IN PARAGRAPH 1O EXCEPT FOR ITS OBLIGATION TO DELIVER THE EQUIPMENT IN ACCORDANCE WTH THE EXPRESS TERMS AND CONDITIONS OF THIS ORDER, SELLER SHALL HAVE NO OTHER WARRANTIES, OBLIGATIONS OR LIABILITIES, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWSE, WTH RESPECT TO ANY NONCONFORMANCE OR DEFECT lN ANY ITEM PURCHASED HEREUNDER, INCLUDING BUT NOT LIIVIITED TO; (A) ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. (B) ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING, USAGE, OR TRADE, (C) ANY OBLIGATION, LIABILITY, RIGHT, CLAII\4, OR REMEDY FOR LOSS OF OR DAMAGE TO ANY EQUIPMENT. 13. EXCLUSION of CONSEQUENTIAL and OTHER DAMAGES: SELLER SHALL HAVE NO OBLIGATION OR LIABILITY, WHETHER ARISING IN CONTRACT (INCLUDING WARRANTY), TORT (INCLUDING ACTIVE, PASSIVE, OR II\4PUTED NEGLEGENCE) OR OTHERWISE, FOR LOSS OF USE, REVENUE OR PROFIT, COST OF CAPITAL, COST OF SUBSTITUTE EQUIPMENT, ADDITIONAL COST INCURRED BY PURCHASER AT ITS PLANT OR IN THE FIELD (WHETHER BY WAY OF CORRECTION OR OTHERWISE), CLAIIVIS BY PURCHASER, PURCHASER'S CUSTOMERS, OR OTHER THIRD PARTIES FOR DAMAGES RESULTING FROM PERSONAL INJURY OR PROPERTY DAMAGE OR ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGE WTH RESPECT TO ANY NONCONFORMANCE OR DEFECT lN ANY lTEl\rls PROVIDED HEREUNDER. 15, PURCHASER,S INDEMNITY: PURCHASER SHALL INDEMNIFY, DEFEND, AND SAVE SELLER AND ITS AGENTS AND EMPLoYEES HARMLESS FRoM AND AGAINST ALL CLAIMS, LIABILITIES, AND CIVIL PENALTIES, INCLUDING COSTS AND EXPENSES (INCLUDING ATTORNEYS' FEES) INCIDENT THERETO OR INCIDENT TO SUCCESSFULLY ESTABLISHING THE RIGHT TO INDEMNIFICATION, FOR INJURY TO OR DEATH OF ANY PERSON OR PERSONS, INCLUDING EMPLOYEES OF PURCHASER, OR FOR LOSS OF, OR DAMAGE TO ANY PROPERTY, INCLUDING EQUIPIVENT, OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN ANY WAY RELATED TO THE POSSESSION, USE, MAINTENANCE, OR OPERATION OF THIS EQUIPMENT, WHETHER OR NOT ARISING IN TORT OR CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF SELLER, WHETHER ACTIVE, PASSIVE, OR IIVIPUTED. TO THE EXTENT OF THIS INDEMNITY, PURCHASER HEREBY WAIVES ANY IMIVUNITY PROVIDED BY TITLE 51 REVISED CODE OF WASHINGTON OR ANY OTHER INDUSTRIAL INSURANCE LAW OR WORKERS COMPENSATION STATUTE. IF THIS INDEMNITY IS LIMITED IN SCOPE BY OPERATION OF LAW THEN IT SHALL EXTEND TO THE FULL EXTENT ALLOWED BY SUCH LAW. 14. PURCHASER'S RESPONSIBILITIES: Except to the extent provided in the express warranties under paragraph 10, Purchaser agrees that, even though it may receive technical information, drawings, or advice from Seller, Purchaser will have sole responsibility (a) for the safety, operation, and performance of the Equipment, (b) for it's suitability for Purchaser's intended use, and (c) where the Equipment is to be used as part of a power, propulsion, or other system, for the installation of the Equipment, the design and performance of such systems, and the adequacy of such system for the particular needs of the Purchaser or any customer of Purchaser. 16. INSURANCE: Purchaser is solely responsible for any loss or damage that occurs to any item or items of Equipment after delivery to Purchaser, and to such loss or damage shall diminish any obligation of Purchaser to Seller hereunder. At all times following delivery, Purchaser agrees to maintain one or more polices insuring the Equipment, in an amount not less than the full amount of the Unpaid Balance from time to time remaining unpaid against all hazards generally covered by extended coverage hazard insurance and against any other hazards required by Seller. Each such policy shall name Seller as an additional insured and loss payee and shall provide that no cancellation or material changes to the policy will be effective as to Seller unless Seller has been given written notice at least thirty (30) days prior to the effective date thereof. Purchaser agrees, if Seller request, to deliver to Seller copies of all such policies or certificates of the insurers evidehcing such coverage_ 17. DEFAULT: lf Purchaser fails to pay when due any amount owing to Seller, or to perform any other obligation to Seller hereunder or otherwise, or if Purchaser becomes insolvent or makes an assignment for the benefit of creditors, or if there shall be instituted by or against Purchaser any proceeding under any bankruptcy, insolvency, or similar law of any jurisdiction, or for the appointment of a receiver or trustee in respect of any Purchaser's property, or if the Seller reasonably believes that Purchaser is unable to meet its debts as they mature, then, in addition to any other rights and remedies that Seller may have, Seller may, upon nolice to Purchaser at any time, declare the entire Unpaid Balance immediately due and payable, require progress payments for the Equipment, require payment for the Equipment in cash upon dgllvery, apply amounts held for Purchaser's account hereunder or otherwise to the Unpaid Balance or to any other obligations of Purchaser to Seller, or terminate all of Seller's obligations under this Order. {8. NON-WAIVER: No term or condition of this Order shall be deemed waived and no breach excused, unless such waiver or excuse is in writing signed by the party claimed to have waived or executed. Any such waiver in a particular instance shall not constitute a waiver of future compliance with such term condition. 19. NOTICES: lf Purchaser fails to pay when due any amount owing to Seller, or to perform any other obligation to Seller hereunder or otheMise, or if Purchaser becomes insolvent or makes an assignment for the benefit of creditors, or if there shall be instituted by or against Purchaser any proceeding under any bankruptcy, insolvency, or similar law of any jurisdiction, or for the appointment of a receiver or trustee in respect of any Purchasef s property, or if the Seller reasonably believes that Purchaser is unable to meet its debts as they mature, then, in addition to any other rights and remedies that Seller may have, Seller may, upon notice to Purchaser at any time, declare the entire Unpaid Balance immediately due and payable, reQuire progress payments for the Equipment, require payment for the Equipment in cash upon delivery, apply amounts held for Purchaser's account hereunder or otherwise to the Unpaid Balance or to any other obligations of Purchaser to Seller, or terminate all of Seller's obligations under this Order. 20. ASSIGNMENT: This Order may not be assigned or otheruise transferred by Purchaser in whole or in part without Seller's prior written consent. Subject to this limitation on assignment and transfer, the terms and condition of this Order shall bind and benefit the parties and their respective successors and assigns. 21. SEVERABILITY: Should any provision of this Order be found by a court of competent jurisdiction to be invalid, illegal, or unenforceable the remaining provisions shall not be affected or impaired thereby except to the extent reasonably necessary to preserve the intent ofthe parties. 22, MERGER; NO CREDIT AGREEMENT: The terms and conditions of this Order merge and supersede all prior and contemporaneous agreements and negotiations regarding the subject matter hereof, except for any agreements entered into pursuant to Paragraph 4 above. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. 23. ATTORNEYS'FEES; APPLICABLE LAW: ln any suit or action arising out of this Order, the losing party shall pay to the prevailing party its reasonable attorneys' fees and all other cost, fees, and expenses incurred by the prevailing party at trial and upon appeal: This Order shall be governed by and construed in accordance with the laws of the State of Washington.. 24. INVALIDITY: Each provision of this shall be considered separable, and if for any reason any provision herein is determined to be invalid, such invalidity shall not impair or olherwise affect the validity of the other provisions of this agreement. lf any provision is deemed to be invalid, it shall be modified, if possible to the extent necessary to remove such invalidity. 25. LKE ASSIGNMENT: PURCHASER lS HEREBY NOTIFIED THAT SELLER HAS ASSIGNED TO'HGl EXCHANGE LLC" ACTING SOLEY lN lT'S CAPACITY AS SELLER'S QUALIFIED INTERMEDIARY, RIGHTS TO ACCEPT AND RECEIVE ALL CONSIDERATION PAYABLE BY PURCHASER (INCLUDING ALL MONEY AND ANY TRADE-IN), BUT NONE OF SELLER'S OBLIGATIONS IN THIS SALE WTH RESPECT TO THE PURCHASE OF QUALIFIED LKE/RENTAL EQUIPMENT FOR THE PURPOSES OF COMPLETING A LIKE-KIND EXCHANGE UNDER SECTION 1031 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, SYSTEMS' DATA VIA PRODUCT LINK OR OTHER TELEMATICS SYSTEM. INITIAL DATA GOVERNANCE CONSENT FORM The Data Governance Statement attached as Appendix A describes Caterpillar's practices for collecting, sharing and using data and information relating to machines, products or other assets and their associated worksites-for example to enable Cat@ Connect and other digital offerings. Please review the Caterpillar Data Governance Statement (also available at www.cat.com/data_governance_statement) regularly and with care. lf Caterpillar updates the Caterpillar Data Governance Statement, Caterpillar may notify you as indicated in the Data Governance Statement. I acknowledge and agree: - That I have read, understand and consent to this Data Governance Consent Form and Caterpillars Data Governance Statement - That I hereby grant to Caterpillar and its affiliates (as defined in the Data Governance Statement), and each of their respective licensors, service providers, suppliers, subcontractors and distributors, a non-exclusive, worldwide, perpetual, paid-up, right and license, including the right to grant and authorize sublicenses through multiple levels, to access, use, process, manipulate, modify, compile with other data or works and/or create derivative works of, in accordance with the Data Governance Statement, any and all information that is collected, transmitted or further processed in accordance with the Data Governance Statement; that the foregoing license shall apply retroactively to the date on which such information was collected; and that the foregoing grant is made notwithstanding any more limited rights granted in any other agreements or understandings, including in any product manuals and other documentation related to Assets (as defined in the Data Governance Statement); - That, to the extent not prohibited by applicable law, Caterpillar may, from time to time, remotely access and program telematics or other devices installed on Assets, for any purpose including by way of example, (a) to install, or cause to be installed, updates and upgrades to software, firmware, or operating systems (for example, to enhance safety, security or improve operation of Assets) or (b) to introduce new features, and/or change the type and frequency of data transmitted through telematics devices (for example, to conduct remote troubleshooting and/or provide increased customer value); that, Caterpillar cannot guarantee that user preferences and conflguration settings will be preserved following such an update, whether performed remotely or otherwise; that, to the extent not prohibited by applicable law, Caterpillar may perform such activities without further notification; and that I may withdraw my consent to the installation of updates and upgrades at any time, or make other related requests to Caterpillar, by contacting Caterpillar at CatConnectSupport@cat.com. ln the event that you transfer ownership, lease, use, or operation of any Assets, you should (i) notify the next owner, leaseholder, user or operator of such Assets of the terms of this Data Governance Consent Form and (ii) notify your dealer that you have transferred ownership, lease, use, or operation of the Assets and identify the person or entity to whom ownership, lease, use, or operation has been transferred. By signing below I voluntary consent and agree to this Data Governance Consent Form Company: Represented by (name) Signature Date CITY OF KENT May 15, 2018 Caterpillar lnc. | 100 NE Adams Street I Peoria lL 61629 | USA car' FinancialVerification of lnsurance Lessee LESSOR (we): CATERPILLAR FINANCIAL SERVICES CORPORATION 2120 West End Avenue Nashville, TN 37203-0001 LESSEE (you): CITY OF KENT 220 4TH AVE S KENT, WA 98032 : lnsurance Coverage Requirements 1. The above-named Lessor and Lessee have entered into Governmental Equipment Lease-Purchase Agreement Transaction Number 3492791 (the "Agreement"). ln accordance with the Agreement, Lessee has instructed the insurance agent named below Co Address:- Phone No: Agent's Nam to issue: a. All Risk Physical Damage lnsurance on the Equipment (as defined in the Agreement) evidenced by a Certificate of lnsurance and Long Form Loss Payable Clause naming the Lessor andior its Assignee, as loss payee. The Coverage Required: the aggregate purchase price for the Equipment. b. Public Liability lnsurance evidenced by a Certificate of lnsurance, naming the Lessor and/or its Assignee as Additional lnsured, with a minimum of $1,000,000 per occurrence is required. 2. Proof of insurance coverage will be provided to Lessor or its Assignee prior to the time the Equipment is delivered to Lessee. Model#Equipment Description Serial #VIN #Value lncluding Tax 1. 308E2CRSB Caterpillar Hydraulic Excavator $157,098.00 SIGNATURES LESSEE CITY OF KENT Signature Name (print) Tifle Date Iiltffiffit[iililff]ilt 594S91 0t1MO1a 1O:57AM CT Opinion of Counsel GAT' Fimmial Re: Governmental Equipment Lease-Purchase Agreement (Transaction Number 34927911(the "Lease") Between CITY OF KENT("Lessee") and Caterpillar Financial Services Corporation ("Lessor") Sir/Madam I am an attorney for Lessee, and in that capacity I am familiar with the above-referenced transaction, the Lease, and all other documents pertaining to the Lease (the Lease and such other documents pertaining to the Lease being referred to as the "Lease Agreements"). Based on my examination of these and such other documents, records and papers and matters of fact and laws as I deemed to be relevant and necessary as the basis for my opinion set forth below, upon which opinion Lessee and any subsequent assignee of Lessee's interest may rely, it is my opinion that: 1. Lessee is a fully constituted political subdivision or agency duly organized and existing under the Constitution and laws of the State of Washington (the "State"), and is authorized by such Constitution and laws (i) to enter into the transaction contemplated by the Lease Agreements and (ii) to carry out its obligations thereunder. 2. The Lease Agreements (i) have been duly authorized, executed and delivered by Lessee and (ii) constitute valid, legal and binding obligations and agreements of Lessee, enforceable against Lessee in accordance with their terms, assuming due authorization and execution thereof by Lessor. 3. No further approval, license, consent, authorization or withholding of objections is required from any federal, state or local governmental authority with respect to the entering into or performance by Lessee of the Lease Agreements and the transactions contemplated by the Lease Agreements. 4. Lessee has sufficient appropriations or other funds available to pay all amounts due under the Lease Agreements for the current fiscal year 5. The interest payable to Lessor by Lessee under the Lease Agreements is exempt from federal income taxation pursuant to Section 103 of the lnternal Revenue Code of 1986, as amended. 6. The entering into and performance of the Lease Agreements will not (i) conflict with, or constitute a breach or violation of, any judgment, consent decree, order, law, regulation, bond, indenture or lease applicable to Lessee, or (ii) result in any breach of, or constitute a default under, or result in the creation of, any lien, charge, security interest or other encumbrance upon any assets of Lessee or the Units (as defined in the Lease) pursuant to any indenture, mortgage, deed of trust, bank loan, credit agreement or other instrument to which Lessee is a party, or by which it or its assets may be bound. 7. No litigation or proceeding is pending or, to the best of my knowledge, threatened to, or which may, (a) restrain or enjoin the execution, delivery or performance by Lessee of the Lease Agreements, (b) in any way contest the validity of the Lease Agreements, (c) contest or question (i) the creation or existence of Lessee or its governing body or (ii) the authority or ability of Lessee to execute or deliver the Lease Agreements or to comply with or perform its obligations under the Lease Agreements. There is no litigation or proceeding pending or, to the best of my knowledge, threatened that seeks to or could restrain or enjoin Lessee from annually appropriating sufficient funds to pay the Lease Payments (as defined in the Lease) or other amounts contemplated by the Lease Agreements. ln addition, I am not aware of any facts or circumstances which would give rise to any litigation or proceeding described in this paragraph. B- The Units are personal property and, when subjected to use by Lessee, will not be or become fixtures under the laws of the State. 9. The authorizaiion, approval and execution of the Lease Agreements, and all other proceedings related to the transactions contemplated by the Lease Agreements, have been performed in accordance with all applicable open meeting, public records, public bidding and all other applicable laws, rules and regulations of the State. 10. The appropriation of moneys to pay the Lease Payments coming due under the Lease and any other amounts contemplated by the Lease Agreements does not and will not result in the violation of any constitutional, statutory or other limitation relating to the manner, form or amount of indebtedness which may be incurred by Lessee. 11. The Lessor will have a perfected security interest in the Units upon the filing of an executed UCC-1 or other financing statement at the time of acceptance of the Units with the Secretary of State for the State. SIGNATURE Name (PRINT) Signature: Title: Date: Address rltfrHrt5flffililil 5946S1 0r1U018 10:574M CT CAT' GATERPTLLAR TNSURANCE COMPANY (CrC) SELECTTON FORM Before financing your equipment, you must arrange physical damage insurance on the equipment identified below. The insurance may be provided through an insurance agent or insurance company of your choice, provided the insurance company satisfies minimum financial requirements. As an alternative to obtaining your own insurance, you may elect to have your equipment insured under coverage arranged by Caterpillar lnsurance Services Corporation, that has been designed specifically for the purchasers of Cat@ equipment. Please complete this form if you elect to insure your equipment with Caterpillar lnsurance Company (ClC). CIC Physical Damage lnsurance Policy Summary Please note: This is only a brief description of the CIC Physical Damage lnsurance Program, Contractual provisions contained in the policy will govern. CIC Physical Damage lnsurance protects your equipment against physical damage losses, including collision, fire, theft, vandalism, upset or overturn, floods, sinking, earthquakes and other unfortunate acts of nature. The protection has been designed for owners of heavy equipment and provides superior benefits you most likely would not find in other plans. The CIC Physical Damage lnsurance does include normal exclusions. Some important exclusions are wear and tear, rust, loss of income, war, nuclear damage, and mechanical breakdown, automobiles, watercraft, waterborne shipments, tires or tubes or mobile track belts damaged by blow-out, puncture, and road damage. \A/hen a covered loss occurs, this plan will pay for Cat@ replacement parts on all your new or used Caterpillar equipment. On all equipment from other manufacturers, the plan will pay for comparable replacement parts. Your CIC plan will pay for round-trip transportation of covered damaged equipment to and from your Cat dealer's repair facility, up to $2,500limit. The plan allows for rental costs up to $2,500 that you incur to rent similar equipment following a covered loss. You are automatically protected with up to $100,000 of coverage for damage to the similar equipment you rent. ln the event of a total loss, the policy will pay the greatest of the following:- The payoff value of the loan on the damaged parts or equipment as of the date of loss or- The actual cash value ofthat covered property; or- The cost of replacing that property with property of like kind and quality The policy will pay 10% of scheduled loss, up to a $10,000 maximum for debris removal. The policy will pay fire department service fees up to $5,000. Coverage Repairs Transportation Rental Reimbursement Claims Deductible Customer Service $1,000 Construction and Agricultural Equipment Deductibles: $5,000 deductible all logging Equipment lf you have any questions or need additional details, see your Authorized Cat Dealer or call CIC toll free al1'800-248-4228. You may also e-mail CIC at physicaldamage@cat.com POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM RISK INSURANCE ACT OF 2OO2 (as extended by the Terrorism Risk lnsurance Extension Act of2005, and as amended in 2007) You are hereby notified that under the Terrorism Risk lnsurance Act, as amended in 2007, the definition of act of terrorism has changed. As defined in Section 102(1) of the Act: The term "act of terrorism" means any act that is certifled by the Secretary of the Treasury - in concurrence with the Secretary of State, and the Attorney General of the United States - to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure, to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Underyour coverage, any losses resulting from certified acts of terrorism may be partially reimbursed by the United States Government under a formula established by the Terrorism Risk lnsurance Act, as amended in2007. However, your policy may contain other exclusions, which might affect your coverage, such as an exclusion for nuclear events. Under the formula, the United States Government generally reimburses 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. The Terrorism Risk lnsurance Act, as amended, contains a $100 billion cap that limits U.S. Government reimbursement as well as insurers'liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $l 00 billion in any one calendar year. lf the aggregate insured losses for all insurers exceed $ 1 00 billion, your coverage may be reduced. The portion of your premium that is attributable to coverage for terrorist acts certified under the Act is: $0.00 Iiltltfrtrifi!,tffiIilil 594s91 h3opcs 0t1M018 10 57 AM cT APPLICATION FOR CIC PHYSICAL DAMAGE INSURANCE Model # Equipment Description Value lncluding Pymt Method-3 Total Tax Total Premium Pymt Method-1 Finance Pymt Serial #VIN Arranged by Caterpillar lnsurance Services Corporation LflWAhl' tfla"*ut' Marsha Blaisdell, Authorized lnsurance Producer I understand that the total insurance premium for 60 months will be $13,480.00, which is $2,696.00 per year based upon the total equipment value of $157,098.00. Method 1 I will finance the insurance premium, including finance charges, of $262.49 per scheduled equipment payment. The finance charge is calculated at 4.55% per annum on the total insurance premium covering the full term of the finance agreement.By choosing Method 1 and signing this document you are agreeing to finance the insurance along with the equipment payments with Caterpillar Financial Services Corporation. Method 2 I desire coverage for an initial 12 month term. I will pay the $2,696.00 premium and return the payment with the signed equipment documents. Please make check payable to ClC. Method 3 I will pay the total premium and return the payment with the signed equipment documents. Please make check payable to ClC. Method 4 I decline Caterpillar lnsurance. I elect to obtain my own commercial insurance on the equipment shown from an agent or insurance company of my choice. I understand that the quote I receive is not a binder of insurance. lf I elect to obtain coverage from CIC , coverage will be effective in accordance with the terms and conditions of the issued Policy and that I may terminate the coverage at any time with advance written notice. I acknowledge that I have been notified that, under the TERRORISM RISK INSURANCE ACT of 2002 (as extended by the Terrorism Risk lnsurance Extension Act of 2005), any losses caused by certified acts of terrorism under my policy will result in coverage under my policy thatwill be partially reimbursed by the United States as outlined in the attached policyholderdisclosure notiflcation. I also acknowledge I have been advised that, if I accept this insurance, an appointed licensed insurance producer will receive commission compensation. Customer Name: CITY OF KENT Dealer Name: N C MACHINERY CO. Please note: lf you would like a no obligation quote on your additional equipment, call 1-800-248-4228 extension 5754. Accepted Name (PRINT) Title:Date Iilt!ffiffitffitffiIilil 59S891 h€opcs 05/152018 10 57AM CI Fraud Warning Applicable in AL, AR, DC, LA, MD, NM, Rl and WV: Any person who knowingly (or willfully)- presents a false or fraudulent claim for payment of a loss or benefit or knowingly (or willfully)- presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. -Applies in MD Only. Applicable in CO: lt is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of lnsurance within the Department of Regulatory Agencies. Applicable in FL and OK: Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony (of the third degree).. .Applies in FL Only. Applicable in KS: Any person who, knowingly and with intent to defraud, presents, causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer, purported insurer, broker or any agent thereof, any written statement as part of, or in support of, an application for the issuance of, or the rating of an insurance policy for personal or commercial insurance, or a claim for payment or other benefit pursuant to an insurance policy for commercial or personal insurance which such person knows to contain materially false information concerning any fact material thereto; or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act. Applicable in KY, NY, OH and PA: Any person who knowingly and with intenl to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties (not to exceed five thousand dollars and the stated value of the claim for each such violation).. .Applies in NY Only. Applicable in ME, TN, VA and WA: lt is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties (may). include imprisonment, fines and denial of insurance benefits. *Applies in ME Only. Applicable in NJ:Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties. Applicable in OR: Any person who knowingly and with intent to defraud or solicit another to defraud the insurer by submitting an application containing a false statement as to any material fact may be violating state law. Applicable in PR: Any person who knowingly and with the intention of defrauding presents false information in an insurance application, or presents, helps, or causes the presentation of a fraudulent claim for the payment of a loss or any other benefit, or presents more than one claim for ihe same damage or loss, shall incur a felony and, upon conviction, shall be sanctioned for each violation by a fine of not less than five thousand dollars ($5,000) and not more than ten thousand dollars ($10,000), or a fixed term of imprisonment for three (3) years, or both penalties. Should aggravating circumstances [be] present, the penalty thus established may be increased to a maximum of five (5) years, if extenuating circumstances are present, it may be reduced to a minimum of two (2) years. ]illtfrffiIffitffiIilil 596891 h3opcc0t15201a 10:57AM Cl cAT' FinancialMeetinq Minutes N C MACHINERY CO. 17035 W. VALLEY HWY P.O. BOX 3562 TUKWILA WA 98188 Reference: CITY OF KENT We are requesting a copy of the minutes of the appropriation meeting during which the funds for this deal were allocated. A copy of this information is necessary to complete the documentation package and to fund the deal. Your ability to return a complete package will ensure timely payment to you. Thank you for your assistance. CATERPI LLAR FINANCIAL SERVICES CORPORATION DOCUMENTATION DEPARTMENT IiltltfrffilFlffffililil 594SS1 otlU018 10:57AM CT Purchase Agreement Transaction Number 3492791 GAT' Financial This Purchase Agreement is between N C MACHINERY CO. ("Vendo/') and Caterpillar Financial Services Corporation ("Cat Financial"). Vendor agrees to sell to Cat Financial and Cat Financial agrees to buy from Vendor the equipment described below (the "Unit(s)"), subject to the terms and conditions set forth below and on the reverse side hereof. Description of Unit(s) Serial# (1) 308E2CRSB New Caterpillar Hydraulic Excavator Lessee: CITY OF KENT 220 4TH AVE S KENT WA 98032 VIN # Subtotal Federal Excise Tax Other Tax Total Purchase Price Unit(s) Delivery Point: 220 4TH AVE S KENT, WA 98032, KING Freight $0.00 Total Price $157,098.00 $157,098.00 0.00 0.00 $157,098.00 SIGNATURES CATERPILLAR FINANCIAL SERVICES CORPORATION Signature Name(Print) Tifle Date See next for additional terms and conditions N C MACHINERY CO. Signature Name(Print) Title Date iiliiifrilfini+ilfflll 5946&1 0t1t2018 10 57AM Cr CAT"Additional Terms and Conditions Transaction Number 3492791 Financial L The lessee named on the front hereof (the "Lessee") has selected the Unit(s), instructed Cat Financial to purchase the Unit(s) from Vendor, and agreed to lease the Unit(s) from Cat Financial. 2. Cat Financial (or its assignee) will have no obligation hereunder (and any sums previously paid by Cat Financial to Vendor with respect to the Unit(s) shall be promptly refunded to Cat Financial) unless (a) all of the conditions set forth in Section 1.3 (if a master lease agreement) or Section 1 (if a non master lease agreement) of the lease with the Lessee covering the Unit(s) have been timely fulfilled and (b) the Lessee has not communicated to Cat Financial (or its assignee), prior to "Delivery" (as hereinafter defined) of the Unit(s), an intent not to lease the Uni(s) from Cat Financial. All conditions specified in this paragraph shall be deemed timely fulfilled unless prior to Delivery of the Unit(s), Cat Financial (or its assignee) shall notify Vendor to the contrary in writing, which shall include fax or email. "Delivery" shall mean the later of the time (a) Cat Financial executes this Purchase Agreement or (b) the Lessee or its agent takes control and/or physical possession of the Unit(s). 3. Upon timely satisfaction of the conditions specified in Paragraph 2 above, ownership, title and risk of loss to the Unit(s) shall transfer to Cat Financial (or its assignee) upon Delivery of the Unit(s). 4. Vendor warrants that (a) upon Delivery of the Unit(s), Cat Financial (or its assignee) will be the owner of and have absolute title to the Unit(s) free and clear of all claims, liens, security interests and encumbrances and the description of the Unit(s) set forth herein is correct and (b) the Unit Transaction Price set forth on the front hereof for each unit of Unit(s) leased under a lease is equal to such Unit(s)'s fair market value. 5. Vendor shall forever warrant and defend the sale of the Unit(s) to Cat Financial (or its assignee), its successors and assigns, against any person claiming an interest in the Unit(s). 6. Provided that no event of default exists under any agreement between Lessee and Cat Financial and upon timely satisfaction of the conditions specified in Paragraph 2 above, and unless otherwise agreed to in this Purchase Agreement, Cat Financial (or its assignee) shall pay Vendor the total Purchase Price set forth on the front hereof for the Unit(s) within three business days following (a) the receipt and approval by Cat Financial of all documentation deemed necessary by Cat Financial in connection with the lease transaction and (b) all credit conditions have been satisfied. 7. Vendor shall deliver the Unit(s) to the Lessee at the delivery point set forth on the front hereof. 8. This Purchase Agreement may be assigned by Cat Financial to a third party. Vendor hereby consents to any such assignment. 9. This Purchase Agreement shall become effective only upon execution by Cat Financial. 594@1 05nil01810:57 AM CT Explanation of Content Transaction Number 3492791 CAT' Financial Thank you for selecting Caterpillar products and for allowing Caterpillar Financial Services Corporation to serve your financing needs. lncluded in this document package are all of the forms that will be needed for standard tax exempt lease purchase transactions. The forms have been designed to be clear, concise and user friendly. We have also provided a brief explanation of the purpose of each form. lf you wish to discuss any of the forms or have any questions about any aspect of this transaction, we encourage you to contact your Caterpillar Dealer or Caterpillar Financial Services Corporation at 1-866-263-3791 Option # 5. A. Governmental Equipment Lease-Purchase Agreement. The Governmental Lease-Purchase Agreement contains the terms that govern each transaction between us. lt is the standard Caterpillar Financial Services Corporalion tax exempt lease-purchase agreement, and provides that we will lease to you the equipment described therein pursuant to a full payout amortization schedule. A new Governmental Equipment Lease-Purchase Agreement will have to be signed in connection with each transaction. B. Lessee's Authorizing Resolution. The Authorizing Resolution is evidence you have taken the necessary governing body actions to approve the Governmental Equipment Lease-Purchase Agreement. Although the authorizing instrument is often a resolution, it may also take other forms such as an ordinance. We are agreeable to using your customary or standard form provided it contains specific approval for the lease-purchase agreement, designates persons who are authorized to sign on your behalf and either approves the document forms or delegates this authority to a named official C, Verification of lnsurance. The Certificate of lnsurance is intended to supply information regarding the insurance coverage for the equipment being lease-purchased. You will need to supply the requested information to us so we can verifu coverage, D. Opinion of COunSel. An opinion of counsel is required in connection with each Governmental Equipment Lease-Purchase Agreement. The opinion is intended to confirm that you have complied with all open meeting laws, publication and notice requirements, procedural rules for governing body meetings, and any other relevant state or local government statutes, ordinances, rules or regulations. We would be unable to confirm compliance with these laws and regulations ourselves absent long delays and higher costs so we rely upon the opinion of your attorney since he/she may have been involved in the process to approve our transaction and is an expert in the laws and regulations to which you are subject. The opinion also confirms that you are an entity eligible to issue tax-exempt obligations and that the Governmental Equipment Lease-Purchase Agreement will be treated as tax-exempt as it is your obligation to ensure that you have complied with relevant tax law. E. Form of 8038G or GC. Form B03B is required by the lnternal Revenue Service in order to monitor the amount of tax-exempt obligations issued. You have to execute a Form 8038 for each Governmental Equipment Lease-Purchase Agreement. Whether a Form 8038 G or GC is required depends on the original principal amount of the Governmental Equipment Lease-Purchase Agreement. lf the original principal amount is less than $100,000 Form 8038GC is filed with the lRS. lf the original principal amount is $100,000 or more Form B03BG is liled with the lRS. Choose the appropriate 8038 form and complete according to IRS guidelines. Contact your TM or Sales Support Representative for assisiance. IRS Form 8038G htto ://www.irs. gov/pub/irs-pdf/f80389.pdf IRS Form BO3BGC htto ://www. irs.gov/oub/irs-pdf/f8038gc.pdf This Explanation of Contents is prepared as an accommodalion to the parties named herein. lt is intended as an example of some of the documents that Caterpillar Financial Services Corporalion, in its reasonable judgment, may require and is not intended to constitute legal advice. Please engage and use your own legal counsel. We understand that the laws of the various states are different so nothing herein shall be construed as a warranty or representation that the documents listed herein are the only documents that may be required in any particular transaction or that any particular transaction, if documented in accordance with this Explanation of Contents, will be a valid, binding and enforceable obligation enforceable against the parties named herein in accordance with the terms of the documents named herein. 5945&1 05/15rO1A 1057 AMCT DOCUMENT CHECKLTST (GOVERNMENTAL LEASE) Transaction Number 3492791 Quote Number 5946891 car' Financial CITY OF KENT 220 4TH AVE S KENT, WA 98032 Dealer: N C MACHINERY CO., H330 Date:0511512018 Time: 10:57 AM Gomments: Customer Executed Documents Comments n Lease Purchase Document n DeliveryCertification n lnsuranceVerification n 8038G or 8038GC ! Advance Payment (cross out if N/A) n CustomerlnformationVerification n Tax Exemption Certificate ! Any necessary Riders/Amendments n Lessee's Resolution + Minutes of Meeting OR n Opinion of Lessee's Counsel n Copy of Driver's License (Sole Proprietorships and lndividuals) Dealer Executed Documents Comments n Purchase Agreement n Dealer lnvoice n All Credit Conditions Met *lf any of these documents are altered, or if the Buyer wishes to add or delete documents, please contact your CFSC Credit Analyst to obtain acceptance of any and all changes. Illl!ffiHlrliilffitllll Governmental Equipment Lease-Purchase Agreement Transaction Number 3492791 cAt' Financial 1. PARTIES LESSOR ("we", "us", or "our"): CATERPILLAR FINANCIAL SERVICES CORPORATION 2 1 20 West End Avenue Nashville, TN 37203 3. Lease Payments; Current Expense You will pay us the lease payments, including the final lease payment set forth above (collectively, the "Lease Payments"). Lease Payments will be paid by you to us as follows: a first payment of 82,912.94 will be paid in arrears and the balance of the Lease Payments is payable in 59 successive monthly payments of which the first 58 payments are in the amount of $2,912.94 each, and the last payment is in the amount of $2,913.94 plus all other amounts then owing under this Lease, with the first Lease Payment due one month after the date that we sign this Lease and subsequent Lease Payments due on a like date of each month thereafter until paid in full. A portion of each Lease Payment constitutes interest and the balance of each Lease Payment is payment of principal. The Lease Payments will be due without demand. You will pay the Lease Payments to us at Caterpillar Financial Services Corporation;PO Box 100647; Pasadena, CA 91 189-0647 or such other location that we designate in writing. Your obligations, including your obligation to pay the Lease Payments due in any fiscal year, will constitute a current expense of yours for such fiscal year and will not constitute an indebtedness of yours within the meaning of the constitution and laws of the State in which you are located (the "State"). Nothing in this Agreement will constitute a pledge by you of any taxes or other moneys, other than moneys lawfully appropriated from time to time for the payment of the "Payments" (as defined in the last sentence of this Section) owing under this Agreement. You agree that, except as provided in Section 7, your duties and liabilities under this Agreement and any associated documents are absolute and unconditional. Your payment and performance obligations are not subject to cancelation, reduction, or setoff for any reason. You agree to settle all claims, defenses, setoffs, counterclaims and other disputes you may have with the Supplier, the manufacturer of the Unit, or any other third party directly with the Supplier, the manufacturer or the third party, as the case may be. You will not assert, allege or make any such claim, defense, setoff, counterclaim or other dispute against us or with respect to the payments due us under this Agreement. As used in this Agreement, "Payments" will mean the Lease Payments and any other amounls required to be paid by you. The portion of the Lease Payments constituting principal will bear interest (computed on the basrs of actual days elapsed in a 360 day year) at the rate of 4.20o/o per annum. 4. Late Charges lf we do not receive a Payment on the date it is due, you will LESSEE ("you" or "your"): CITY OF KENT 220 4TH AVE S KENT, WA 98032 pay to us, on demand, a late payment charge equal to the lesser of five percent (5%) of such Payment or the highest charge allowed by law. 5. Security lnterest To secure your obligations under this Agreement, you grant us a continuing flrst priority security interest in each Unit (including any Additional Collateral), includrng all attachments, accessories and optional features (whether or not installed on such Units) and all substitutions, replacements, additions, and accessions, and the proceeds of all the foregoing, including, but not limited to, proceeds in the form of chattel paper. You authorize the filing of such financing statements and will, at your expense, do any act and execute, acknowledge, deliver, file, register and record any document, which we deem desirable to protect our security interest in each Unit and our rights and beneflts under this Agreement. You, at your expense, will protect and defend our security interest in the Units and will keep the Units free and clear of any and all claims, lrens, encumbrances and legal processes however and whenever arising. 6. Disclaimer of Warranties WE HAVE NOT MADE AND DO NOT MAKE ANY WARRANTY, REPRESENTATION OR COVENANT OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE UNITS. AS TO US, YOUR LEASE AND PURCHASE OF THE UNITS WLL BE ON AN 'AS IS" AND ''WHERE lS' BASIS AND "WTH ALL FAULTS". Nothing in this Agreement is intended to limit, waive, abridge or otherwise modify any rights, claims, or causes of action that you may have against any person or entity other than us. 7. Non-Appropriation You have an immediate need for, and expect to make immediate use of, the Units. This need is not temporary or expected to diminish during the term of this Agreement. To that end, you agree, to the extent permitted by law, to include in your budget for the current and each successive fiscal year during the term of this Agreement, a sufficient amount to permit you to discharge your obligations under this Agreement. Notwithstanding any provision of this Agreement to the contrary, we and you agree that, in the event that prior to the commencement of any of your fiscal years you do not have sufficient funds appropriated to make the Payments due under this Agreement for such fiscal year, you will have the option of terminating this Agreement as of the date of the commencement of such fiscal year by giving us si)iny (60) days prior written notice of your intent to terminate. No later than the last day of the last fiscal year for which appropriations were made for the Payments (the "Return Date"), you will ln reliance on your selection of the equipment described below (each a "Unit"), we have agreed to acquire and lease the Units to you, subject to the terms of this Lease- Until this Lease has been signed by our duly authorized representative, it will constitute an offer by you to enter into this Lease with us on the terms stated herein. 2. DESCRIPTION OF THE UNITS SERIAUVIN Unique lD number for this Unit. Deriod. as stated below in section 3. MONTHLY LEASE PAYMENT This is due per FINAL LEASE PAYMENT DELIVERY DATE Enter date machine was delivered to you DESCRIPTION OF UNITS Vlihelher the Unit is new or used, the model number, the manufacturer, and the model name- $2,912.94 $2,913.94(1) New 308EzCRSB Caterpillar Hydraulic Excavator TERMS AND CONDITIONS lilt!ffiffiit5ftffililil S463Sl h330pcs W1t201a 1057AM CT return to us all ofthe Units, atyoursole expense, in accordancewith Section 14, and thisAgreementwill terminate on the Return Date without penalty or expense to you and you will not be obligated to pay the Lease Payments beyond such fiscal year; provided, that you will pay all Payments for which moneys have been appropriated or are otheruise available; and provided further, that you will pay month to-month rent at the rate set by us for each month or part of any month that you fail to return the Units. 8. Tax Warranty You will, at all times, do and perform all acts and things necessary and within your control to ensure that the interest component of the Lease Payments will, for the purposes of Federal income taxation, be excluded from our gross income. You will not permit or cause your obligations under this Agreement to be guaranteed by the Federal Government or any branch or instrumentality of the Federal Government. You will use the Units for the purpose of performing one or more of your governmental functions consistent with the scope of your authority and not in any trade or business carried on by a person other than you. You will report this Agreement to the lnternal Revenue Service by filing Form 8038G, 8038GC or 8038, as applicable. Failure to do so will cause this Agreement to lose its tax exempt status. You agree that if the appropriate form is not filed, the interest rate payable under this Agreement will be raised to the equivalent taxable interest rate. lf the use, possession or acquisrtion of the Unrts is determined to be subject to taxation, you will pay when due all taxes and governmental charges assessed or levied against or with respect to the Units. 9. Assignment You may not, without our prior written consent, by operation of law or otheruise, assign, transfer, pledge, hypothecate or otherwise dispose of your right, title and interest in and to this Agreement and/or the Units and/or grant or assign a security interest in this Agreement and/or the Units, in whole or in part. We may not transfer, sell, assign, pledge, hypothecate, or otheMrse dispose of our right, title and interest in and to this Agreement and/or the Units and/or grant or assign a security interest in this Agreement and/or the Units, in whole or in part. 10. lndemnity To the extent permitted by law, you assume liability for, agree to and do indemnify, protect and hold harmless us and our employees, officers, drrectors and agents from and against any and all liabilities, obligations, losses, damages, injuries, claims, demands, penalties, actions, costs and expenses (including reasonable attorney's fees), of whatsoever kind and nature, arising out of the use, condition (including, but not limited to, latent and other defects and whether or not discoverable by you or us), operation, ownership, selection, delivery, storage, leasing or return of any item of Units, regardless of where, how and by whom operated, or any failure on your part to accept the Units or otherwise to perform or comply with any condrtions of this Agreement. 11. lnsurance; Loss and Damage You bear the entire risk of loss, theft, destruction or damage to the Units from any cause whatsoever. No loss, theft, destruction or damage of the Units will relieve you of the obligation to make Lease Payments or to perform any obligation owing under this Agreement. You agree to keep the Units insured to protect all of our interests, at your expense, for such risks, in such amounts, in such forms and with such companies as we may require, including but not limited to fire and extended coverage insurance, explosion and collision coverage, and personal liability and property damage liability insurance. Any insurance policies relating to loss or damage to the Units will name us as loss payee as our interests may appear and the proceeds may be applied toward the replacement or repair of the Units or the satrsfaction of the Payments due under this Agreement. You agree to use, operate and maintain the Units in accordance with all laws, regulations and ordinances and in accordance with the provision of any policies of insurance covering the Units, and will not rent the Units or permit the Units to be used by anyone other than you. You agree to keep the Units in good repair, working order and condition and house the Units in suitable shelter, and to permit us or our assigns to rnspect the Units at any time and to otherwise protect our interests in the Units. lf any Unit is customarily covered by a maintenance agreement, you will furnish us with a maintenance agreement by a party acceptable to us. 12. Default; Remedies An "Event of Default" will occur if (a) you fail to pay any Payment when due and such failure continues for ten (10) days after the due date for such Payment or (b) you fail to perform or observe any other covenant, condition, or agreement to be performed or observed by you under this Agreement and such failure is not cured within twenty (20) days after written notice of such failure from us. Upon an Event of Default, we will have all rights and remedies available under applrcable law. ln addition, we may declare all Lease Payments due or to become due during the fiscal year in which the Event of Default occurs to be immediately due and payable by you and/or we may repossess the Units by giving you written notice to deliver the Units to us in the manner provided in Section 14, or in the event you fail to do so within ten (10) days after receipt of such notice, and sublect to all applicable laws, we may enter upon your premises and take possession of the Units. Further, if we financed your obligations under any extended warranty agreement such as an Equipment Protection Plan, Extended Service Contract, Extended Warranty, Customer Service Agreement, Total Maintenance and Repair Agreement or similar agreement, we may cancel such extended warranty agreement on your behalf and receive the refund of the extended warranty agreement fees that we financed but had not received from you as of the date of the Event of Default. 13. Miscellaneous This Agreement may not be modified, amended, altered or changed except by a written agreement signed by you and us. ln the event any provision of this Agreement is found invalid or unenforceable, the remaining provisions will remain in full force and effect. This Agreement, together with exhibits, constitutes the entire agreement between you and us and supersedes all prior and contemporaneous writings, understandings, agreements, solicitations, documents and representations, expressed or implied. Any terms and conditions of any purchase order or other documents submitted by you in connection with this Agreement which are in addition to or inconsistent with the terms and conditions of this Agreement will not be binding on us and will not apply to this Agreement. You agree that we may correct patent errors in this Agreement and fill in blanks including, for example, correcting orfilling in serial numbers, VIN numbers, and dates. Any notices required to be given under this Agreement will be given to the parties in writing and by certified mail at the address provided in this Agreement, or to such other addresses as each party may substitute by notice to the other, which notice will be effective upon its receipt. 14. Title; Return of Units Notwithstanding our designation as "Lessor", we do not own the Units. Legal title to the Units will be in you so long as an Event of Default has not occurred and you have not exercised your right of non-appropriation. lf an Event of Default occurs or if you non-appropriate, full and unencumbered title to the Units will pass to us without the necessity of further action by the parties, and you will have no further interest in the Units. lf we are entitled to obtain possession of any Units or if you are obligated at any time to return any Units, then (a) title to the Units will vest in us immediately, and (b) you will, at your expense, promptly deliver the Unit to us properly protected and in the condition required by Section 11. You will deliver the Unit, at our option, (i) to the nearest Caterpillar dealer selling equipment of the same type as the Unit; or (ii) on board a carrier named by us and shipping the Unit, freight collect, to a destination designated by us. lf the Unit is not in the condition required by Section 11, you must pay us, on demand, all costs and expenses incurred by us to bring the Unit into the required condition. Until the Units are returned as required above, all terms of this Agreement wrll remain in full force and effect including, without limitation, your obligation to pay Lease Payments and to insure the Units. 15. Other Documents ln connection with the execution of this Agreement, you will cause to be delivered to us (i) either (A) a certified copy of your authorizing resolution substantially in the form attached as Attachment B and a copy of the minutes of the relevant meeting or (B) an opinion of your counsel substantially in the form attached as Attachment C; (ii) a Verification of lnsurance substantially in the form attached to this Agreement; (iii) a copy of the signed Form filed with the lnternal Revenue Service required in Section 8 above as Attachment D, and (iv) any other documents or items required by us. 16. Applicable Law This Agreement will be governed by the laws, excluding the laws relaiing to the choice of law, of the State in which you are located. SIGNATURES LESSOR CATERPILLAR FINANCIAL SERVICES CORPORATION Signature Name (print) Title Date LESSEE CITY OF KENT Signature Name (print) Title Date S46891 h3&pcs Ot15/2018 1057AM CT CUSTOMER INFORMATION VERIFICATION (Required Document)CAT' Financial In our efforts to continue providing timely customer service, we need your assistance confirming the following information. lf information is incorrect or missing, please note the necessary changes below and return this form with your signed documents addition, please review the Data Privacy Notice stated below. Thank you in advance for your cooperation. Purchase Order # for new contract: any ln Current lnformation on file Please make corrections here Customer Name: Physical Address: CITY OF KENT 220 4TH AVE S KENT, WA 98032 22O 4TH AVE S KENT, WA 98032 220 4fH AVE S KENT, WA 98032, KING (253)856-5200 RGreen@kentwa.gov Mailing Address Equipment Location Business Phone: E-mail Address: Accounts Payable Contact Name and Phone: Tax lnformation Sales Tax Rate: (Please note: Sales Tax Rate, includes all applicable State, County, and City sales tax) City Limits Asset outside the City Limits? Yes_ No_ 0 Tax Exemption Status Please indicate if you are tax exempt.a Exempt* fl Non-Exempt "A Tax Exemption Certiticate is required for all tax exempt customers. If you are tax exempt - please enclose a current tax exemption certificate to be rcturned with your documents. lf you would like an electronic copy of your contract, please provide a valid email address below (one letter per line). Electronic Copy Available Upon Funding The information above has been reviewed and is accurate to the best of my knowledge with exception of any corrections as noted. *Should the above changes apply to ALL of your contracts, OR for this contract ONLY? n ALLCONTRACTS ! THIS CONTRACT ONLY THE ABOVE INFORMATION HAS BEEN REVIEWED AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE WITH EXCEPTION OF ANY CORRECTIONS AS NOTED. Customer lnitials Data Privacy Notice This notice peftains to personal data supplied in connection with your credit application. By providing your information to Caterpillar lnc. or any of its subsidiaries or affiliates, including Caterpillar Financial Servbes Corporation (collectively "Caterpiilar"), you are agreeing that the information may be shared among Caterpillar and its paftners and dealers, and used to process your applications for credit and other orders and to improve or market Caterpillar products and servrces. lf you have any questions pertaining to this notice, please contact the Data Privacy Coordinator at 61 5-341-8222. Illlltfrffitl5ilfiff1ilil 5946S1 05n5/2019 1057 AM Cl KENT RISK MANAGEMENT DIVISION Chris Hills, ARM-P, CRM Risk Manager 400 West Gowe Kent, WA 98032 Fax:253-856-6270WasHlNoroI OFFICE! 253-856-s285 - May 16, 2018 Caterpil la r Financia I Services Corporation 2L2O West End Avenue Nashville, TN 37203-0001 RE: Physical Damage Insurance for Caterpillar Hydraulic Excavator, Model # 3OBE2CRSB leased by the City of Kent, WA Dear Caterpillar Financial Servlces : You have requested evidence of the City of Kent's Physical Damage insurance coverage in conjunction with the vehicle Lease cited above, The City is a municipal corporation which fully self-insures its Automobile Physical Damage loss exposures under the provisions of Chapter 48.62 of the Revised Code of Washington (RCW). Questions regarding the City of Kent's insurance programs can be referred to the Risk Management Division of the Human Resources Department at (253)856-5285. Sincerely yours,h-> -h.+- Christopher M. Hills, ARM-P, CRM Risk Manager o('l <3+Jcov o Mayor Dana Ralph City of Kent Human Resources Department Marty Fisher, Director DATE (MM/DDIYYYY} 5t16t2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. TH|S CERTTFTCATE OF TNSURANCE DOES NOT CONSTTTUTE A CONTRACT BETWEEN THE TSSU|NG TNSURER(S), AUTHORTZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: lf the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. lf SUBROGATION lS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Seattle-Alliant lnsurance Services, lnc. 1420Fifth Avenue, Suite 1500 Seattle WA 98101 Conni Scott 206-204-9140 206-204-9205 INSURER(S} AFFORDING COVERAGE NAIC # rNsrrRER A : Safetv National Casualtv CorDoration 15105 INSURED City of Kent 220 Fourth Avenue South Kent WA 98032-5895 KE583802 INSURER S INSURER C INSURER D INSIIRER E : INSURER F : COVERAGES CERTIFICATE OF LIABILIry INSURANCE CERTIFICATE NUMBER: 1 057136838 REVISION NUMBER IHIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WTH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, INSRITR TYPE OF INSURANCE ADDL SUBF POI ICY NIIMHFR POLICY EFF POLICY EXP LIMITS X COMMERCIAL GENERAL LIABILITY CLAII\iIS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: 'o',"' f-llF.; [l ,o. Y Y G14058201 1t1t2014 1t1t2019 EACH OCCURRENCE $ 2,000,000 PF $ 500,000 MED EXP (Anv one person)$ PERSONAL & ADV INJURY $ 2.000,000 GENERAL AGGREGATE $ 4.000,000 PRODUCIS - COIVIP/OP AGG $ 4.000,000 stR $ 500,000 AUTOMOBILE LIABILITY X ANY AUTO ALL OWNED AUTOS HIRED AUTOS SCHEDULED AUTOS NON-O\^iNIED AUTOS Y Y cAS4058202 1t1t2018 1t112019 $ r nnn nnn BODILY INJURY (Per person)$ BODILY INJURY (Per accident)$ $ SIR $ 500,000 UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS-IV]ADE EACH OCCURRENCE $ AGGREGATE $ DFT)RFTFNTION S $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/IVEIVlBER EXCLUDED? (Mandatory in NH) lf yes, describe under nFSCRIPTION OF OPFRATIONS hrlnw H N/A HtsK STATI ITF uth-trF E.L EACH ACCIDENT $ E.L. DISEASE - EA EIVPLOYEE $ E L DTSEASE - POI tCY t ilVltT $ DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD t 01, Addilional Remarks Schedule, may be attached lf more space is required) RE: Lease of Caterpillar tractor CERTIFICATE HOLDER CANCELLA N @ 1988-2014 ACORD CORPORATION. All rights reserved The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCOROANCE WITH THE POLICY PROVISIONS. Caterpillar Financial Services Corporation 2120 West End Avenue Nashville TN 37203-0001 &h,*4 AI,JTHORIZED ACORD 2s (2014t011 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIG NAT ED AD DIT IONAL INSU RED This endorsement modifies insurance proMded under the following: COMM ERCIAL AUTOMOBILE COVERAGE PART SCHEDULE CHANGE The person(s) or organization(s) shown in the Schedule abow with whom you hale agreed in a written contract to provide insurance such as is afforded under this Cowrage Form, is included as an Additional lnsured subject to the below: (1) lnsurancefursuchAdditionallnsured(s)scheduledabowshallbeaffordedonlytotheextentthatsuch Additional lnsured is liable for "bodily injury" or "property damage" arising out of your operations and resulting fom the ownership, maintenance or use of cowred "autos" by you while the corered "autos" are on premises owned or leased by the abow scheduled Additional lnsured(s). (2) The insurance afforded under this Colerage Form to such Additional lnsured(s) applies only: (a) lf the "accident" takes place subsequent to the execution and effectirc date of such written contract and, (b) While such written contract is in force, or until the end of the policy period, which eler occurs first. (3) How LimitsApply to Additional lnsured(s) The most we will pay on behalf of the Additional lnsured(s) scheduled aborc is the lesser ot (a) The limits of insurance specified in the written contract or written agreement; or, (b) The Limits of lnsurance proMded by the Colerage Form. The amount we will pay on behalf of such Additional lnsured(s) shall be a part of, and not in addition to, the Limits of lnsurance shown in the Corerage Form Declarations and described in this section. Such amount will thus not increase the Limits of lnsurance shown for the Colerage Form. (4) Exclusions (a) This endorsement does not apply to liability of the Additional lnsured which arises out of the ownership of transportation operating rights granted to the Additional lnsured by public authority. (b) This endorsementdoes notapply tothe liability of theowneroranyoneelsefomwhom you hire or borrow a corcred auto. or Person(s) or Organization(s) as required by written contract. Any indlvidually scheduled Designated Additional Insured shall not be construed to override nor negate this blanket Designated Additional Tnsured sNcA 026 10 13 Safety National Cas ualty Corporation Page 1 of2 (5) Obligations atthe Additional lnsured's Own Cost No Additional lnsured will, exceptat theirown cost, loluntarily make a payment, assuffe any obligation, or incurany expense, otherthan forfirst aid, without ourconsent. The Additional lnsured(s) scheduled abole shall be subject to all other conditions set forth in the Corerage Form This endorsement does not alter corcrage provided in the Corerage Form. This endorsenent changes the policy to w hich it is attached and is ef fective on the date issued unless otherw ise stated. (The information below is required onlywhen this endorsementis issued subsequentto preparation of the policy.) Endorsement Effectirc 0r/0L/2arl Policy No. cAS4058202 Endorsement No. Named lnsured WASHTNGTON PUBLTC ENTrry GRoup (V.]APEG) Premium $ rnct-uded lnsurance Company Safety National Casualty Corporatlon Countersigned By Page 2oI2 Safety National Casualty Corporation sNcA 026 10 13 THIS ENDORSEMENT CHAI{GES THE POLICY. PLEASE READ IT CAREFULLY. DESIG NAT ED ADDITIONAL INSU RED This endorsement modifies insurance proMded under the following: COMMERCIAL GENERAL LIABILIry COVERAGE FORM P RODUCTS/COM P LETE D OP ERATIONS LIABILIry COVE RAGE FORM LIQUOR LIABILIry COVERAGE FORM POLLUTION LIABILITY COVERAGE FORM SCHEDULE Name of Additional lnsured Person(s) or Orqanizationt s l: Person(s) or Organization(s) as requlred by written contract Any indivrdually scheduled Designated Additional fnsured shaff not be construed to override nor neqate this blanket Designated Additional fnsured. on, or o As per wratten contract or agreement wrth the above descrlbed person(s) or organizatron (s ) . CHAIIGE SECTION ll -WHO lS AN INSURED is amended to include: 4. The person(s) or organization(s) shown in the Schedule abow with whom you harc ag contract to provde insurance such as is afbrded under this Corcrage Form, is included lnsured subject to the below: reed in a written as an Additional a lnsurance for such Additional lnsured(s) scheduled abow shall be afiorded only to the exte nt t hat s uch Additional lnsured is liable for "bodily injury", "property damage" or "personal and adwrtising injury" caused by your acts or omissions while actircly engaged in the performance of your ongoing operations inwlving the prolect(s), locations(s), orwork designated in the Schedule and as specified in the contract between you and the abow scheduled Additional lnsured(s). b. The insurance afforded under this Colerage Form to such Additional lnsured(s) applies only: (1) lf the "occurrence" or offense takes place subsequent to the execution and effectirc date of such written contract. and, (2) Whilesuchwrittencontractisinforce,oruntiltheendofthepolicyperiod,whicheleroccursfirst. c. How LimitsApply to Additional lnsured(s) The most we will pay on behalf of the Additional lnsured(s) scheduled aborc is the lesser ot (1) The limits of insurance specified in the written contract or written agreement; or, (2) The Limits of lnsurance provided by the Cowrage Form. The amount we will pay on behalf of such Additional lnsured(s) shall be a part of, and not in addition to, the Limits of lnsurance shown in the Colerage Form Declarations and described in this section. Such amount will thus not increase the Limits of lnsurance shown for the Colerage Form. SNGL 0221111 Safety Ndional Ca ualty Corporation Pagel of 2 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY d. Obligations at the Additional lnsured's Own Cosf No Additional lnsured will, except at their own cost, rcluntarily make a payment, assurre any obligation, or incur any expense, other than for first aid, without our consent. The Additional lnsured(s) scheduled abole shall be subject to all other conditions set forth in the Colerage Form This endorsement does not alter cowrage provided in the Colerage Form. This endorsernent changes the policy to w hich it is attached and is effective on the date issued unless otherw ise stated. (The information below is required onlywhen this endorsement is issued subsequent to preparation of the policy.) Endorsement Effectirc or/0r/2018 Policy No. el 4058201 Endorsement No. lnsured WASHTNGTON puB],rc ENTrry cRoup (wApEG) Premium$ rncluded lnsurance Company Safety National Casualty Corporatlon Countersigned By sNGL 0221111 Safety National Casualty Corporation Page2of 2 Agenda Item: Consent Calendar – 8K_ TO: City Council DATE: July 3, 2018 SUBJECT: 1st Avenue North Improvements – Accept as Complete SUMMARY: This project improved the west side of 1st Avenue North between West Smith Street and West Temperance Street adjacent to the Sound Transit parking garage to provide cement concrete sidewalk, curb and gutter, cement concrete pavement, pedestrian lighting, street trees, storm pipe, 12 parking stalls and installation of 2 electric vehicle charging stations. 24 additional parking stalls will be provided between West Temperance Street and W. James Street. The final contract total was $407,130.91, which is $38,315.55 over the original contract amount of $368,815.36. Additional work was added, which included wheelchair ramps for compliance with the American with Disabilities Act (ADA). EXHIBITS: None RECOMMENDED BY: Public Works Director BUDGET IMPACTS: The City received a $272,000 Pedestrian Mobility Grant from the Washington State Department of Transportation. The remaining funds are included in the B & O budget. STRATEGIC PLAN GOAL(S): ☒ Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. MOTION: Authorize the Mayor to accept the 1st Avenue North Improvements Project as complete and to release retainage to NPM Construction Co., upon receipt of standard releases from the state and the release of any liens. This page intentionally left blank. Agenda Item: Consent Calendar – 8L_ TO: City Council DATE: July 3, 2018 SUBJECT: Washko Real Estate Holdings – Aldarra Corporate Park Bill of Sale – Accept SUMMARY: This bill of sale is related to the Aldarra Corporate Park located at 6400 South 212th Street for the following improvements: • Frontage Improvements, together with lights, trees, landscaping (except residential streets) and/or any other appurtenances on the West Valley Highway, including: o Driveway with emergency access road and concrete sidewalk; and o Driveway and access road at $30,000 EXHIBITS: Bill of Sale RECOMMENDED BY: Public Works Director BUDGET IMPACTS: None STRATEGIC PLAN GOAL(S): ☒ Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. MOTION: Authorize Council to accept the Bill of Sale from Washko Real Estate Holdings, LLC., as detailed in the summary below. This page intentionally left blank. 1 MAII. TO: CITY OF KENT ENGINEERING DEPARTMENT ATTN: Amy Waters KE,[-lT zzo - 4rH AvENUE sourH KENT, WASHINGTON 98032W¡sntNûToN ON (street, easement, etc.) ON (slreet, easement, etc.) Project: Permit #cc - 2t5tb Aldârra Coroorate Park I,ùe0 $$tüeelll0ll? ìtw 10 ltrilTì lNÐt åo Å'$ä Location:6400 South 2 12th Street Parcel #:112204-9079 FROM linear feet at $ _ per LF of _ waterline manholes at g each and/or any other appurtenances FROM BILL OF SALE CITY OF KENT KING COUNTY, WASHINGTON THrs TNsTRUMENT made this Jç day of &P.rl zo 17 , by and between Washk-o_Real Estaie Holdings, a Washington limited liability corporation , hereinafter ca'ed "Granlors", and City of Kent, a municipal corporation of King County, State of Washington, hereinafter called "Grantee": WITNESSETH: That the said Grantors for a valuable consideration does hereby grant, bargain, sell to Grantee the following d escri bed improvements : A. WATERMAI,NS: Together with a total of gate valves at g ach, _ hydrants at $each and/or any other appurtenances thereto, IlI Including (size & type) B. SANITARY SEWERS: Together with a total of thereto. Including linear feet at $ _ per LF of Bill of Sale 1of 5 TO (size & type)sewerline. C. NEW STREETS: Together with curbs, gutters, sidewalks, and/or any other appurLenances ON FROM (streel, easement, etc.) ON (street, easement, etc.) FROM West Valley Highway Drivewav with eme rgency access Including Driveway and linear feet at $30 000 Incl uding linear feet at $per LF of (size & type)(improvement) D. FRONTAGE IMPROVEMENTS: Together with lights, trees, landscaping (except residential streets) and/or any other appurtenances TO TO road and concrete sidewalk access roao (size & type) E. $ÏORM SEWERS: Togelher with a total of basins at $ concrete ement). pe r LF of driveway/access each or total of catch LF of biofiltration swale or drainage ditch cubic feet of detention pond storage IÍT manholes at $ each, with a total cost of $ with a total cost of $ , and/or any other appurtenances thereto glt (street, easement, etc.) FROM in ci udi ng iinear feet at ç per LF of (size & type) _ sewerline. To have and to hold the same to the said Grantee, its successors and assigns forever. The undersigned hereby covenants that it is the lawful owner of said property; and that the same is free from all encumbrances; that all bills for labor and materials have been paid; that it has the right to sell the same aforesaid; that it will warrant and defend the same against the lawful claims and demand of all person(s). Ïhe Bill of Sale is given on consideration of the agreement of the Grantee for itself, its successors and assigns to lncorporate said utilities in its utility system and to maintain them as provided in the applicable City Ordinances. The City accepts the items subjecl to staff approval and completion of a 2 year maintenance period. tslll of Sale 2of5 IN WITNESS WH EREOF, the unde day of T¡¡ WITNESS W has caused this instrument to be executed on this ,20 -17 , the unclersigned has ceused this lnstrurnent lo be e><ecuted on this M 20 17 -.. f*. W day of HEREOF, *.(I{^\ \ STATE OF WASHINGTON COUNTY OF KING On this underslgn appeared ciVEN under my hand and official seal this Bill of Sale 3 of 5 ss ) ) ) 19lj/,^day of þtr),20 , before me, the å,i\l ¡\ ry Public a fo WashÌn duly commissioned and sworn, personally to me known to be the individual described in and wh o executed the foregoing instrumenL, and acknowledged to me that helshe signed and sealed this instrument as his/her free and voluntary act and deed for the uses and purposes therein mentioned ßIh,É_ay of 20 Notary Public in an for State of Washington,din My on Expi åi; N f Ä &r'\ U) -*s* B L'lJt 'l j¡ w KEHT WagHtrf¡Tot{ E]{GIII EER'S CERTIFICATIOil CITY OF KET{T KING COUHTY, WASHTI{GTOH The figures used on the Bill of Sa[e for Aldana Corporate Park project dated 8/2512A15 , for the same s¿¡6 Aldarra Corporate Park project AliSadr, P.E the undersigned e Bill of Sale andP.E. or land surveyor is the person responsible for the preparation of th is an employee 6¡ ,Barghausqn9ppsulting Enginegr,s, lnc. ., the firm responsible for the preparation of the record drawings. Signature ( E n g I neer sta m p req u Íred ) Bill of Sale 5of5 Agenda Item: Consent Calendar – 8M_ TO: City Council DATE: July 3, 2018 SUBJECT: Star Rentals – Bill of Sale – Accept SUMMARY: This bill of sale is related to Star Rentals that is located at 21216 64th Avenue South for the following improvements: • Frontage Improvements, together with lights, trees, landscaping (except residential streets) and/or any other appurtenances: o Driveway entrance along with concrete walk - 64th Avenue South and South 212th Street; and o Driveway with 90 lineal feet of concrete at $8,000 for the concrete driveway/sidewalk. EXHIBITS: Bill of Sale RECOMMENDED BY: Public Works Director BUDGET IMPACTS: None STRATEGIC PLAN GOAL(S): ☒ Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. MOTION: Authorize Council to accept the Bill of Sale from Star Rentals, Inc., as detailed in the summary below. This page intentionally left blank. MAIL TO: CITY OF KENT ENGINEERING DEPARTMENT ATTN: Amy Waters ENT 22O - 4TH AVENUE SOUTH KENT, WASHINGTON 98032 Star Rentalsc$v or ì{AY 01 ?$11 ÀEiHIN6TÞH Project: Permit #RECC-2151367 ÉNqtìù ÉEBINû DEPf Location: 21216 - 64th Aven ue South Parcel #; 112204-9006 BILL OF SALE CITY OF KENT KrNG COUNTY, WASHTNGTON THIS INSTRUMENT made this 9l ¿ay or û-øv i I 20 17 , by and between , Star Rentals, lnc., a Washington corporation , hereinafter called "Grantors", and City of Kent, a municipal corporation of King County, State of Washington, hereinafter called "Grantee": WITNESSETH That the said Grantors for a valuable consideration does hereby grant, bargain, sell to Grantee the following described improvements : A. WATERMAINS: Togetherwithatotalof-gatevalvesat$-each,-hydrantsat $ _ each and/or any other appurtenances thereto. s (street, easement, etc,) FROM Including linear feet at $per LF of (size & type)waterline. B.SEGIUEË: Together with a total of thereto. manholes at $each and/or any other appurtenances ON (street, easement, etc.) FROM Including linear feet at $ _ per LF of Bill of Sale 1of5 TO TO (size & type)sewerline C. NE'W S'I'REE'ÍS: Together with curbs, gutters, sidewalks, and/or any other appurtenances ON FROM (street, easement, etc.) basins at $each, Including linear feet at $per LF of (size & type)(improvement) D. FRONTAGE IMPROVEMENTS: Together with lights, trees, landscaping (except residential streets) and/or any other appurtenances ON FROM TO (street, easement, etc.) 64th Ave. S. & S. 212th St. Driveway entrance along with concrete walk on S. 212th St. Driveway w/ 90 Including lineal feet of concrete linear feet at $8,000 per LF o¡ driveway/sidewalk wa (size & type) tk concrete mprovement) E. STORM SEWERS: Together with a total of manholes at $each or total of æ, catch LF of biofiltration swale or drainage ditch cubic feet of detention pond storage and/or any other appurtenances thereto. FROM TO with a total cost of $ with a total cost of $ ON (street, easement, etc.) Including Iinear feet at $per LF of (size & type)sewerline To have and to hold the same to the said Grantee, its successors and assigns forever. The undersigned hereby covenants that it is the lawful owner of said property; and that the same is free from all encumbrances; that all bills for labor and materials have been paid; that it has the right to sell the same aforesaid; that it will warrant and defend the same against the lawful claims and demand of all person(s). The Bill of Sale is given on consideration of the agreement of the Grantee for itself, its successors and assigns to incorporate said utilities in its utility system and to maintain them as provided in the applicable City Ordinances, The City accepts the items subject to staff approval and completion of a 2 year maintenance period. Bill of Sale 2of5 IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed on this 2/day of ,2O 17 . IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed on this day of nzo 17 . OF WASHINGTON ss cou F KING On this day of ,20-me, the undersigned A Nota lic in and for the State of Washington, duly commissioned sworn, personally appeared to me known to be th ividual described in and who executed the foregoing i and acknowledged to me e signed and sealed this instrument as his/her free and vol untary and deed for the uses a rposes therein mentioned GIVEN under my hand and official seal this 20 _. Notary Public in for the State of Washington, residing My Commission Expires: Bill of Sale 3of5 ) ) ) STATE OF WASHINGTON COUNTY OF KING 15 ss ) ) ) on this 2t+ day of Àca^r\ , 20 17 , before me, the undersigned A Notary Public in and for the State of Washingtoìn, Cuty commissioned and sworn, personally appeared and to me to be the respectively ofd anc the that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute the said instrument Witness my hand and official seal hereto affix the day and year first above written PUBLIC 20- \o^J*,- r<VTIA.r-,^o^ Notary Public in and tity' tne Stgþ ot Washington, residing at ' v My Commission Expires b- ;.Õ-t1OpWAItttlliltttt\\ The Bill of Sale is g¡ven and accepted pursuant to a motion duly made, seconded, and passed by the City Council of the City of Kent, King County, Washington, on the )o 17 d ay of Bill of Sale 4of5 KENT Wtsr¡tlt{¡Tt}¡t E }¡GT þI Ë ËR'S CE RTTFICATTO N CTTY OF KEI{T Krf-{G cQt ffTY, WASHTN€TON The figures used on the ßill of $ale fcr $tar Rental*praject dated 7!7/2ü1X , for the same said Ëtar Rentals project.ÅliSaclr P F the undersigned P.F. or land surveyor is the person responsible for the preparation af the ßill of Sale and is an employee of Barghausen tonsulting Ënginoers, lnc., the firm responsible far the preparation of the record drawings. 2t8t2ü17 Signature { E ngineer xtam p requ ireú ) Biil of Sale 5af5 t This page intentionally left blank. Agenda Item: Consent Calendar – 8N_ TO: City Council DATE: July 3, 2018 SUBJECT: Hogan Park Field One Synthetic Turf Conversion Project – Accept as Complete SUMMARY: In April 2017 the Parks Department contracted with Premier Field Development, in the amount of $1,911,679, to replace the natural turf baseball field on Field One of Hogan Park at Russell Road with synthetic turf. The synthetic turf allows for year-round play of multiple sports. The project manager accepted the project as complete on June 19, 2018, subject to warranty provisions. EXHIBITS: Acceptance Letter RECOMMENDED BY: Parks, Recreation and Community Services Director BUDGET IMPACTS: Hogan Park at Russell Road Field Conversion capital budget STRATEGIC PLAN GOAL(S): ☒ Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. MOTION: Authorize the Mayor to accept the Hogan Park Field #1 Synthetic Turf Conversion Project as complete and release retainage funds in the amount of $88,274.06 to Premier Field Development, upon receipt of standard releases from the state and the release of any liens. This page intentionally left blank. KENT PARKS, RECREATION & COMMUNITY SERVICES Julie Parascondola, CPRP, Director Parks, Recreation and Community Services 22O 4th Avenue South Kent, WA 98032 Fax: 253-856-6050WAgHtNoroN PHONE: 253-856-51O0 June 21, 2018 Dave Rice Premier Field Development 207 Cedar Ave. Snohomish, WA 98290 RE: Hogan Park Field #1 Synthetic Turf Installation Dear Dave: I made a final inspection of the fencing at the synthetic turf on Field #1 at Hogan park on 6/19/2018 and found that the project is completed to my satisfaction. This letter constitutes Final Completion of this public works project. If you have any questions, please call or email. Thank you. Regards,A /r2-- Brian Levenhagen Brian Levenhagent Deputy Director Parks, Recreation, & Community Services 220 Fourth Avenue South, Kent, WA 98032 Direct Line 253-856-5116 | Fax 253-856-6050 bj leven haqen @ KentWA.oov o(tl < =+Jc o)V o Mayor Dana Ralph City of Kent Parks, Recreation & Community Services Julie Parascondola, Director This page intentionally left blank. Agenda Item: Consent Calendar – 8O_ TO: City Council DATE: July 3, 2018 SUBJECT: First Amendment to the 2017 Annual Action Plan – Authorize SUMMARY: Each year the City of Kent executes specific actions to implement the objectives and strategies of the five-year CDBG Consolidated Plan, which are outlined in the Annual Action Plan. In 2017, the City recaptured the following amount in CDBG funds that were originally allocated in the Annual Action Plan: • $20,964 in public service funds; and • $75,947 in planning and administration funds. The City wishes to reallocate these funds as provided for in the First Amendment. EXHIBITS: First Amendment to the 2017 Annual Action Plan RECOMMENDED BY: Parks & Human Services Committee YEA: Boyce, Kaur, Larimer Yea NAY: BUDGET IMPACT: The 2017 CDBG budget was adopted as part of the 2017 adopted budget, and the impacted budget accounts will be current year CDBG accounts. STRATEGIC PLAN GOAL(S): ☒ Thriving Neighborhoods and Urban Centers - Creating vibrant urban centers, welcoming neighborhoods, and green spaces for healthy growth and cultural celebration. ☒ Sustainable Funding - Maximizing long-term financial success through responsible fiscal oversight, economic growth, and community partnerships. MOTION: Approve the First Amendment to the 2017 CDBG Annual Action Plan and authorize the Mayor to submit the amendment to HUD and sign all necessary documents. This page intentionally left blank. CITY OF KENT PARKS, RECREATION & COMMUNITY SERVICES FIRST AMENDMENT to the 2017 ANNUAL ACTION PLAN A. BACKGROUND 1. The 2015-2019 Consolidated Plan for Housing and Community Development provides a framework for implementing housing, human services and community development activities from 2015-2019. 2. Each year the City of Kent executes specific actions to implement the objectives and strategies of the five-year Consolidated Plan, which are outlined in the Annual Action Plan. B. Public Services Budget 1. In 2017, the city allocated $18,716 in Community Development Block Grant (CDBG) funds to Open Doors for Multicultural Families to provide emergency assistance grants to Kent residents. 2. Because the City did not receive its contract from HUD until late in the year, Open Doors for Multicultural Families could not spend the funds prior to the end of 2017 leading to the recapture of these funds by the City. 3. The City also allocated $65,000 to Multi-Service Center-Housing Stability Program to provide rent assistance grants to Kent residents; the organization returned $2,248 of the funds. 4. The City wishes to reallocate these funds to a public service project(s) provided by an agency(ies) in 2018 that that has not been previously funded and addresses an emerging/urgent need of an under-served population. 5. The City will identify the agency(ies) as it makes funding decisions for the 2018-2019 funding cycle. C. Planning and Administration Budget 1. In 2017, the City allocated $210,931 to the Planning and Administration (P & A) budget for personnel costs and planning and administration activities. 2. The P & A budget has a balance of $75,947, and the City wishes to reallocate this amount to the 2018 P & A budget. D. AMENDMENT 1. Amend the 2017 Annual Action Plan to allow for the reallocation of $20,964 in CDBG funds to a public service project provided by an agency that that has not been previously funded and addresses an emerging/urgent need of an under-served population. 2. Amend the 2017 Annual Action Plan to allow for the reallocation of $75,947 in CDBG P & A funds to the 2018 P & A budget to provide P & A activities. Funds shall be reallocated as follows: 2017 Public Service Projects Awarded Funds Expended Balance to Reallocate Open Doors for Multicultural Families- Emergency Assistance Program $18,716.00 $0 $18,716.00 Multi-Service Center-Housing Stability Project $65,000.00 $62,752.00 $ 2,248.00 Total Public Service Funds $83,716.00 $64,276.00 $20,964.00 Reallocate to: Agency TBD $20,964.00 Total Public Service Funds Reallocated $20,964.00 2017 Planning & Administration City of Kent: Planning & Administration Budget $210,931.00 $134,984.00 $75,947.00 Reallocate to 2018 Planning & Administration Budget $75,947.00 Total P & A Funds Reallocated $75,947.00 Total 2017 CDBG Funds Reallocated $96,911.00 Agenda Item: Consent Calendar – 8P_ TO: City Council DATE: July 3, 2018 SUBJECT: Second Amendment to the 2016 Annual Action Plan - Authorize SUMMARY: Each year the City of Kent executes specific actions to implement the objectives and strategies of the five-year CDBG Consolidated Plan, which are outlined in the Annual Action Plan. In 2016, the City recaptured the following amount in CDBG funds that were originally allocated in the Annual Action Plan: • $27,470 in public service funds • $81,564 in capital funds; and • $67,137 in planning and administration funds. The City wishes to reallocate these funds as provided for in the Second Amendment. EXHIBITS: Second Amendment to the 2016 Annual Action Plan RECOMMENDED BY: Parks & Human Services Committee YEA: Boyce, Kaur, Larimer NAY: BUDGET IMPACT: The 2016 CDBG budget was adopted as part of the 2016 adopted budget and the impacted budget accounts will be current year CDBG budgets. STRATEGIC PLAN GOAL(S): infrastructure, enriched community interactions, and responsive, trusting relationships. ☒ Thriving Neighborhoods and Urban Centers - Creating vibrant urban centers, welcoming neighborhoods, and green spaces for healthy growth and cultural celebration. ☒ Sustainable Funding - Maximizing long-term financial success through responsible fiscal oversight, economic growth, and community partnerships. MOTION: Approve the Second Amendment to the 2016 CDBG Annual Action Plan and authorize the Mayor to submit the amendment to HUD and sign all necessary documents. This page intentionally left blank. CITY OF KENT PARKS, RECREATION & COMMUNITY SERVICES SECOND AMENDMENT to the 2016 ANNUAL ACTION PLAN A. BACKGROUND 1. The 2015-2019 Consolidated Plan for Housing and Community Development provides a framework for implementing housing, human services and community development activities from 2015-2019. 2. Each year the City of Kent executes specific actions to implement the objectives and strategies of the five-year Consolidated Plan, which are outlined in the Annual Action Plan. B. Public Service Budget 1. In 2016, the city allocated $21,182 in Community Development Block Grant (CDBG) funds to the YWCA-Anita Vista Transitional Housing Program to provide shelter and case management services to domestic violence survivors residing in Anita Vista. Because the agency inadvertently charged $11,193.80 (rounded up to $11,194 hereinafter) in personnel charges to the CDBG budget that it had already paid for with other funding sources, it refunded this amount to the City. 2 In addition, the City allocated $18,182 to the Refugee Women’s Alliance- Case Management and Emergency Assistance Project to provide linguistically/culturally appropriate case management and emergency assistance grants to immigrant and refugee clients residing in Kent. 3. Because ReWA failed to provide adequate backup documentation supporting all costs charged to the grant, $8,166.91 of the grant was unallocated (rounded up to $8,167 hereinafter). 4. The City also allocated $13,182 to the Refugee Women’s Alliance-Senior Nutrition and Wellness Program to provide ethnically appropriate and nutritious congregate meals and health education for refugee and immigrant seniors residing in Kent. Because ReWA failed to provide adequate backup documentation supporting all costs charged to the grant, $3,821 of the grant was unallocated. 5. The City allocated $66,424 to the Multi-Service Center Housing Stability Program to provide rent assistance grants to Kent residents. The organization returned $4,288 of the funds. 6. The City wishes to reallocate the cumulative total from these four public service projects ($27,470) to a public service project(s) provided by an agency(ies) in 2019 that that has not been previously funded and addresses an emerging/urgent need of an under-served population. 7. The City will identify the agency(ies) as it makes funding decisions for the 2019-2020 funding cycle. C. Capital Budget 1. In 2016, the City allocated $686,902 to the Kent Home Repair Program (HRP) to provide emergency and minor home repair assistance grants to Kent residents. A balance of $81,564 remains in the budget. 2. The City wishes to reallocate this amount to the 2017 HRP budget. D. Planning and Administration Budget 1. In 2016, the City allocated $211,354 to the Planning and Administration (P & A) budget for personnel costs and planning and administration activities. The P & A budget has a balance of $67,137. 2. The City wishes to reallocate this amount for the purchase of a truck to carry out the activities of the Home Repair Program. 3. The $32,137 balance will be reallocated to the 2018 P & A budget. E. AMENDMENT 1. Amend the 2016 Annual Action Plan to allow for the reallocation of $27,470 in CDBG funds to a 2019 public service project provided by an agency that that has not been previously funded and addresses an emerging/urgent need of an under-served population. 2. Amend the 2016 Annual Action Plan to allow for the reallocation of $81,564 in CDBG capital funds to the 2017 Home Repair Program budget to provide rehabilitation activities. 3. Amend the 2016 Annual Action Plan to allow for the reallocation of $35,000 in CDBG P & A funds for the purchase of a Home Repair Program truck. 4. Amend the 2016 Annual Action Plan to allow the $32,137 balance of the 2016 P & A budget to be reallocated to the 2018 P & A budget to provide P & A activities. Funds shall be reallocated as follows: 2016 Public Service Projects Awarded Funds Expended Balance to Reallocate YWCA: Anita Vista Transitional Housing Program $21,182.00 $9,988.00 $11,194.00 ReWA: Case Management and Emergency Assistance Project $18,182.00 $10,015.00 $8,167.00 ReWA: Senior Nutrition and Wellness Program $13,182.00 $9,361.00 $3,821.00 Multi-Service Center: Housing Stability Program $66,424.00 $62,603.00 $4,288.00 Total Public Service Funds $39,364.00 $20,003.00 $27,470.00 Reallocate to: Agency TBD $27,470.00 Total Public Service Funds Reallocated $27,470.00 2016 Capital Project City of Kent Home Repair Program $686,902.00 605,338.00 $81,564.00 Reallocate to 2017 Home Repair Program Budget $81,564.00 Total Capital Funds Reallocated $81,564.00 2016 Planning & Administration City of Kent: Planning & Administration Budget $211,354.00 $144,217.00 $67,137.00 Reallocate for the Purchase of a Home Repair Program Truck $35,000.00 Reallocate to 2018 Planning & Administration Budget $32,137.00 Total P & A Funds Reallocated $67,137.00 Total 2016 CDBG Funds Reallocated $176,171.00 OTHER BUSINESS This page intentionally left blank. Agenda Item: BIDS – 10A_ TO: City Council DATE: July 3, 2018 SUBJECT: East Valley Highway Preservation South 180th Street to South 196th Street Project – Award SUMMARY: This project will plane and overlay 47,000 square yards of the East Valley Highway between South 180th Street and South 196th Street. The existing pedestrian curb ramps will be replaced with new ADA compliant ramps. The bid opening for the East Valley Highway Preservation South 180th Street to South 196th Street Project was held on June 26, 2018 with one bid received. The bid was submitted by Scarsella Bros., Inc. in the amount of $2,247,843.75. Bid Tab Summary 01. Scarsella Bros., Inc. $2,247,843.75 Engineer's Estimate $2,341,895.00 EXHIBITS: None RECOMMENDED BY: Public Works Director BUDGET IMPACTS: The project will be paid for using a federal grant of $1,500,000, with the balance paid for using budgeted Business and Occupation Tax Funds. STRATEGIC PLAN GOAL(S): ☒ Evolving Infrastructure – Connecting people and places through strategic investments in physical and technological infrastructure. ☒ Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. MOTION: Award the East Valley Highway Preservation South 180th Street to South 196th Street Project to Scarsella Bros., Inc., in the amount of $2,247,843.75 and authorize the Mayor to sign all necessary documents, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. This page intentionally left blank. EXECUTIVE SESSION ACTION AFTER EXECUTIVE SESSION ADJOURNMENT