HomeMy WebLinkAboutItem 11 - Approve an Agreement for Online Subscription Services for FPPC Filings Clerk of the Council Office
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Item # 11
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 16, 2022
TOPIC: Online Subscription Services for FPPC Filing
AGENDA TITLE:
Approve an Agreement with NetFile Inc. for Online Subscription Services for FPPC Filing
in an Amount not to Exceed $95,000 for up to a Three-Year Term and a Two-Year
Extension (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with NetFile Inc. for online
subscription services for FPPC filing, in an amount not to exceed $95,000, for a term
beginning August 1, 2022 through July 31, 2025, with one 2-year extension, subject to
non-substantive changes approved by City Manager and City Attorney.
DISCUSSION
The Clerk of the Council is the local filing officer for the Fair Political Practices
Commission (FPPC) for documents such as the Statements of Economic Interest (Form
700) and the Campaign Contribution reports. Currently, the City has approximately 350
filers that are required to file an annual Form 700 with the Clerk of the Council, as well as
several Assuming Office and Leaving Office statements throughout the year, as
designated filers (employees, as well as board members and commissioners) transition
in and out of their respective positions. In addition, the City has approximately 50
campaign disclosure filers.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
Online Subscription Services for FPPC Filing
August 16, 2022
Page 2
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FISCAL IMPACT
Funds for this amendment are budgeted and available in the following account:
Fiscal
Year
Accounting Unit-
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
FY22-23 01107031-62300 General Fund COTC – Contract
Services Professional
Account
$19,000
FY23-24 01107031-62300 General Fund COTC – Contract
Services Professional
Account
$19,000
FY24-25 01107031-62300 General Fund COTC – Contract
Services Professional
Account
$19,000
FY25-26 01107031-62300 General Fund COTC – Contract
Services Professional
Account
$19,000
FY26-27 01107031-62300 General Fund COTC – Contract
Services Professional
Account
$19,000
Total $95,000
EXHIBIT(S)
1. Agreement
Submitted By: Norma Orozco, Deputy Clerk of the Council
Approved By: Kristine Ridge, City Manager
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AGREEMENT WITH NETFILE TO PROVIDE ONLINE
SUBSCRIPTION SERVICES FOR FPPC FILING
This agreement for the performance of services (“Agreement”) is made and entered into on this
1st day of August, 2022 (“Effective Date”), by and between NetFile, a California corporation, with
its principal place of business located at 2707 Aurora Road, Mariposa, California 95338
(“Contractor”), and the City of Santa Ana, a charter city and municipal corporation organized and
existing under the Constitution and laws of the State of California (hereinafter “City”), with its
principal place of business located at 20 Civic Center Plaza, Santa Ana, CA 92701. City and
Contractor may be referred to herein individually as a “Party” or collectively as the “Parties” or
the “Parties to this Agreement.”
RECITALS
Whereas:
A. City desires to continue with professional services more fully described in this Agreement;
B. Contractor represents that it, and its sub-contractors, if any, have the professional
qualifications, expertise, desire and any license(s) necessary to provide certain goods
and/or required services of the quality and type which meet the City’s requirements; and,
C. The Parties have specified in this Agreement the terms and conditions under which such
services will be provided and paid for.
Contractor and City agree as follows:
AGREEMENT PROVISIONS
1. SERVICES TO BE PROVIDED
City employs Contractor to perform the services (“Services”) more fully described in Exhibit A
entitled, SCOPE OF SERVICES. Exhibit A is attached and incorporated by this reference. Except
as otherwise specified in this Agreement, Contractor shall furnish all necessary technical and
professional services, including labor, material, equipment, transportation, supervision and
expertise to satisfactorily complete the work required by City.
2. TERM OF AGREEMENT
The term of this Agreement shall commence on the date first written above expiring end of day
July 31, 2025, unless terminated earlier in accordance with Section 24 of this Agreement. The
term of this Agreement may be extended for a two (2) year period upon a writing executed by the
City Manager and City Attorney. The fee for this service is listed in Section 3, “Compensation
and Payment” of this Agreement.
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3. COMPENSATION AND PAYMENT
Contractor will provide the use of the Campaign Disclosure System and Statement of Economic
Interests system (up to 350 SEI filers) at an ongoing discounted rate of $19,000 per year
commencing August 1, 2022. The total amount to be expended during the term of this Agreement
shall not exceed $95,000 (“Total Compensation”).
City has the option of paying on an ongoing quarterly basis for Services provided by Contractor
billed in advance of the quarter instead of one annual payment. No interest or finance charges will
be incurred if the City chooses the quarterly payment option. City will pay Contractor within
forty-five (45) days of City’s receipt of invoice. If for any reason the contract is terminated prior
to the paid through date by the City, Contractor will reimburse City any unused amount within ten
(10) working days from the termination date.
4. NO ASSIGNMENT OF AGREEMENT
City and Contractor bind themselves, their successors and assigns to all covenants of this
Agreement. This Agreement shall not be assigned or transferred without the prior written approval
of City.
5. NO THIRD PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or
parties, and no third party or parties shall have any claim or right of action under this Agreement.
6. INDEPENDENT CONTRACTOR
This Agreement is not intended nor shall it be construed to create an employer-employee
relationship, a joint venture relationship, or to allow the City to exercise discretion or control over
the professional manner in which Contractor performs the services which are the subject matter of
this Agreement. Contractor and all person(s) employed by or contracted with Contractor to furnish
labor and/or materials under this Agreement are independent contractors and do not act as agent(s)
or employee(s) of City. Contractor has full rights, however, to manage its employees in their
performance of Services under this Agreement. Contractor is not authorized to bind City to any
contracts or other obligations.
7. SUBCONTRACTING
None of the Services under this Agreement shall be performed by subcontractors unless Contractor
specifically identifies subcontractors in writing and City pre-approves such subcontractors in
writing. Contractor shall be as fully responsible to City for the acts and omissions of its
subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for
the acts and omissions of persons directly employed by it.
8. USE OF CITY NAME OR EMBLEM
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Contractor and its employees, agents and representatives will not, without the prior written consent
of City in each instance, use in advertising, publicity or otherwise the name of City or any affiliate
of City, or any officer or employee of City, nor any trade name, trademark, trade device, service
mark, symbol or any abbreviation, agreement or simulation thereof owned by City or its affiliates,
nor represent, directly or indirectly, that any product or service provided by Contractor has been
approved or endorsed by City, nor refer to the existence of this Agreement in press releases,
advertising or materials distributed to prospective customers. Notwithstanding the foregoing,
Contractor may acknowledge, when asked, that the City is a NetFile client.
9. AUDITS
City, through its authorized representatives, has the right during the term of this Agreement, and
for three (3) years from the date of final payment for goods and/or Services provided under this
Agreement, to audit the books and records of Contractor regarding matters covered by this
Agreement. Contractor agrees to maintain accurate books and records in accordance with generally
accepted accounting principles. Any expenses not so recorded shall be disallowed by City.
Contractor agrees to help City meet any reporting requirements with respect to Contractor’s
Services if requested by City in writing.
10. QUALIFICATIONS OF CONTRACTOR
Contractor represents that its personnel are qualified to furnish Services of the type and quality
which City requires. City expressly relies on Contractor’s representations regarding its skills and
knowledge. Contractor shall promptly perform all Services requested by City in a safe manner and
in accordance with all federal, state, and local operation and safety regulations. Contractor shall
work closely with and be guided by City. Contractor shall also perform all work in accordance
with generally accepted business practices and performance standards of the industry.
11. MONITORING OF SERVICES
City may monitor the Services performed under this Agreement to determine whether Contractor’s
operation conforms to City policy and to the terms of this Agreement. City may also monitor the
Services to be performed to determine whether financial operations are conducted in accord with
applicable city, City, state, and federal requirements. If any action of Contractor constitutes a
breach, City may terminate this Agreement pursuant to the provisions described herein.
12. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be
fit for the purpose intended, shall be free from known defects, in a timely manner, and shall
conform to the specifications, requirements, and instructions upon which this Agreement is based.
Contractor agrees to promptly replace or correct any incomplete, inaccurate, or defective Services
at no further cost to City when defects are due to the negligence, errors or omissions of Contractor.
Contractor further warrants and represents that it is the owner of or has acquired the rights to use
(including derivative rights) the software, technology or otherwise that is required to provide all
related materials and services as set forth in Exhibit A, without violating any rights of any third
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party, and there is currently no actual or threatened suit by any such third party based on an alleged
violation of such third-party rights by Contractor.
Contractor further warrants that NetFile servers have a guarantee uptime of 99% (which includes
all scheduled maintenance throughout the year) and for so long as City shall pay the fees described
in this Agreement (a) the System will be materially free of errors, and (b) Contractor will provide
the Professional Services in a professional and workmanlike manner consistent with the highest
industry standards. Contractor further warrants, during the term of this Agreement, that (i) the
NetFile servers will be free of any Harmful Code (as defined below), and (ii) Contractor will not
interfere with or disrupt City’s or the User’s use of the System. For purposes of this Agreement,
the term “Harmful Code” means any software code with the ability to damage, interfere with, or
adversely affect computer programs, data files, or hardware without the consent or intent of the
computer user. This definition includes, but is not limited to, self-replacing and self-propagating
programming instructions commonly called “viruses,” “Trojan horses” and “worms.” Contractor
agrees to implement reasonable procedures adequate to prevent any software, link or code
provided to City hereunder from being contaminated with Harmful Code. If Contractor learns of
or suspects the existence of any Harmful Code, Contractor will immediately notify City and make
every effort to remove the Harmful Code.
13. NON-DISCRIMINATION
Provider shall not discriminate because of race, color, creed, religion, sex, marital status, sexual
orientation, gender identity, gender expression, gender, medical conditions, genetic information,
or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited
by applicable law, in the recruitment, selection, teaching, training, utilization, promotion,
termination or other employment related activities or any services provided under this Agreement.
Provider affirms that it is an equal opportunity employer and shall comply with all applicable
federal, state and local laws and regulations.
14. CONTRACTOR TO HOLD CITY HARMLESS
Subject to the limitations set forth in Exhibit A (SCOPE OF SERVICES) Section F (LIMITATION
OF LIABILITY), Contractor agrees to indemnify, protect, defend, and hold harmless the City, its
City Council, officers and employees from and against any claim, injury, liability, loss, cost, and/or
expense or damage, including all costs and reasonable attorney’s fees in providing a defense to
any claim, arising from Contractor’s negligent, reckless or wrongful acts, errors, or omissions with
respect to or in any way connected with the performance of the Services by Contractor, its agents,
subcontractors and/or assigns under this Agreement.
15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit B, Contractor shall
purchase and maintain in full force and effect, at no cost to City insurance policies with respect to
employees assigned to the Performance of Services under this Agreement with coverage amounts,
required endorsements, certificates of insurance, and coverage verifications as defined in Exhibit
B attached and incorporated by this reference.
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16. AMENDMENTS
This Agreement may be amended only with the written consent of both Parties.
17. INTEGRATED DOCUMENT
This Agreement represents the entire agreement between City and Contractor. No other
understanding, agreements, conversations, or otherwise, with any representative of City prior to
execution of this Agreement shall affect or modify any of the terms or obligations of this
Agreement. Any verbal agreement shall be considered unofficial information and is not binding
upon City.
18. SEVERABILITY CLAUSE
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid,
illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which
shall remain in full force and effect.
19. LAW GOVERNING CONTRACT
This Agreement shall be governed and interpreted using the laws of the State of California.
20. DISPUTE RESOLUTION
a. Any controversies or claims between Contractor and City regarding this Agreement must first
be put in writing and delivered to the other Party. The Parties will meet in good faith to attempt
to resolve the issue in question. If the Parties fail to come to an agreement on the resolution of
the issue, the matter must be submitted to mediation within thirty (30) calendar days after the
written request for mediation is delivered by one Party.
b. The Parties may agree on one mediator. If they cannot agree on one mediator, the Party
demanding mediation shall request that the Orange County Superior Court shall appoint a
mediator. The mediation meeting shall not exceed one work day [eight (8) hours]. The Parties
may agree to extend the time allowed for mediation under this Agreement.
c. Mediation under this section is a condition precedent to filing an action in any court. In the
event litigation or mediation arises out of any dispute related to this Agreement, the Parties
shall each pay their respective attorneys’ fees, expert witness costs and cost of suit, regardless
of the outcome of the litigation.
d. Only after the mediation procedure has failed to resolve a dispute between the Parties may one
or both of the Parties file suit in the appropriate civil court.
21. VENUE
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The venue of any suit filed by either Party shall be vested in the state courts of the County of
Orange, or if appropriate, in the United States District Court, Central District of California.
22. ELECTION OF REMEDIES
The pursuit by any Party of any specific remedy shall not exclude any other remedy available to
the Party.
23. CONFLICT OF INTERESTS
This Agreement does not prevent either Party from entering into similar agreements with other
parties. To prevent a conflict of interest, Contractor certifies that to the best of its knowledge, no
City officer, employee or authorized representative has any financial interest in the business of
Contractor and that no person associated with Contractor has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. Contractor is familiar with the
provisions of California Government Code Section 87100 and following, and certifies that it does
not know of any facts which would violate these code provisions. Contractor will advise City if a
conflict arises.
24. TERMINATION OF THE AGREEMENT
a. This Agreement may be terminated by the City upon forty-five (45) days written notice of
termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant
compensation for all services performed by Consultant prior to receipt of such notice of
termination, subject to the following conditions:
i. As a condition of such payment, the Executive Director may require Consultant to
deliver to the City all work product(s) completed as of such date, and in such case such
work product shall be the property of the City unless prohibited by law, and Consultant
consents to the City's use thereof for such purposes as the City deems appropriate.
ii. Payment need not be made for work which fails to meet the standard of
performance specified in the Recitals of this Agreement.
b. Termination Due to Unavailability of Funds
When funds are not appropriated or otherwise made available by the City to support continuation
of performance, the Agreement shall be cancelled and the Contractor shall be reimbursed for the
reasonable value of any nonrecurring cost incurred but not amortized in the price of the supplies
or services delivered under the Agreement prior to termination.
c. Data Recovery
If the services are terminated for any reason, the City will receive a DVD copy of all data created
in the system by the City within 21 working days of notification of termination.
d. Deletion of Data
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The City has the right at any time during the contract period as well as upon the termination of the
Agreement to instruct the Contractor to delete all City created data in the system. This request
must be in writing and the Contractor has 21 working days to complete the deletion of the data
from the system.
25. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as
follows:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92701
Fax: 714-647-6956
And to Contractor addressed as follows:
NetFile
2707 Aurora Road
Mariposa, CA 95338
Facsimile at (209) 391-2200
26. HOSTING SERVICES
a. Availability of Services.
Subject to the terms of this Agreement, Contractor shall use its best efforts to provide online access
to the City and filers of FPPC forms for twenty-four (24) hours a day, seven (7) days a week upon
completion of the parsed database and accepted by the City and thereafter, throughout the term of
this Agreement. City agrees that from time to time Contractor’s servers may be inaccessible or
inoperable for various reasons, including: (i) equipment malfunctions; (ii) periodic maintenance
procedures or repairs which Contractor may undertake from time to time; or (iii) causes beyond
the control of Contractor or which were not reasonably foreseeable by Contractor, including
interruption or failure of communications or transmission links, hostile network attacks or other
failures (collectively “Downtime”). Contractor shall provide forty-eight (48) hour advance notice
to City in the event of any scheduled Downtime. Contractor shall use its best efforts to minimize
any disruption, inaccessibility and/or inoperability in connection with the Downtime, whether
scheduled or not. In the event of any Downtime, City shall be entitled to a pro-rata reduction of
any payments due and payable to Contractor for such period.
b. Backups
Contractor shall maintain backup servers and telecommunications connections and
maintain weekly backups of City’s database of FPPC Form filings on such backup servers.
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c. Storage and Security
Contactor shall operate and maintain the servers in good working order with access
restricted to qualified employees of Contractor and persons specifically designated by City.
Contractor shall undertake and perform the measures set forth in Exhibit A to ensure the security,
confidentiality, and integrity of all City content and other proprietary information transmitted
through or stored on Contractor’s server(s), including, without limitation: (i) firewall protection;
(ii) maintenance of independent archival and backup copies of the City’s content; and (iii)
protection from any network attack and other harmful, malicious, or disabling data, work, code or
program.
d. Non-Disclosure
Contractor shall comply with all laws and regulations applicable to the gathering,
processing, storing, transmitting and dissemination of personal information. Contractor will not
disclose any personal information accepted as required pursuant to the FPPC Forms laws, without
City’s prior written consent, unless such disclosure is (i) authorized pursuant to the FPPC
Disclosure laws; (ii) required by law or regulation, but only to the extent and for the purpose of
such law or regulation; (iii) is in response to a valid order of any court of competent jurisdiction
or other government body, but only to the extent of and for the purpose of such order, and only if
Contractor first notifies City of the order and permits City to seek an appropriate protective order;
or (iv) with written permission of City in compliance with any terms or conditions set by City
regarding such disclosure.
27. OWNERSHIP OF DATA
All data created in the system by the City or users authorized by the City is the property of the
City. All source code created by the Contractor is the property of the Contractor.
28. UPGRADES TO SYSTEM
All upgrades to the system by Contractor will be gratis to the City unless mutually agreed upon by
both parties in writing.
29. LIABILITY FOR CITY SCANNED DOCUMENTS
City accepts any and all liability resulting from the placement of documents scanned by the City
that are made available on the Internet for public viewing through the services of the Contractor.
In no event does the Contractor accept liability created by any document scanned into the System
by the City.
30. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the
power, authority and right to bind their respective parties to each of the terms of
this Agreement, and shall indemnify City fully, including reasonable costs and
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attorney’s fees, for any injuries or damages to City in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully
set forth in the body of this Agreement.
c. This Agreement and counterparts of this Agreement may be executed and delivered
by facsimile or other electronic means by any of the parties to this Agreement. The
facsimile, email, or other electronically delivered signatures of the parties shall be
deemed to constitute original signatures.
[signature page to follow]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST: CITY OF SANTA ANA
Clerk of the Council
Kristine Ridge
City Manager
CONTRACTOR
NETFILE INC.
By: ________________________________
TOM DIEBERT
Vice President
Netfile Inc.
2707 Aurora Road
Mariposa, CA 95338
Telephone: (209) 742-4100
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: _
Laura A. Rossini
Chief Assistant City Attorney
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EXHIBIT A
SCOPE OF SERVICES
A. Expected Outcome
NetFile will maintain a system that permits the City of Santa Ana (“City”) and users authorized
by the City to (1) Electronically file FPPC Statements of Economic Interest, Form 700 (“SEI”)
and to be available, at the option of the City (in redacted form) for public viewing of documents
over the Internet through a link on the City’s website; (2) maintain a database of the FPPC SEI
forms to track filings and generate filing deadline and amendment letters and (3) allow the City
to scan SEI reports/forms not submitted electronically.
NetFile will maintain a system that permits the City and all filers who have a political disclosure
reporting responsibility to the City and authorized by the City to (1) file any or all of the FPPC
Forms 450, 460, 461, 465, 470, 496, and 497 in electronic format to be available in redacted
form for public viewing of documents over the Internet through a link on the City’s website; (2)
maintain a database of the FPPC Forms to track filings and generate filing deadline and
amendment letters; and, (3) allow the City to scan reports not submitted electronically.
B. Deliverables
NetFile will continue to have ready for use a system that permits (1) electronic filing of FPPC
Statement of Economic Interest, Form 700 and Campaign Disclosure Forms 450, 460, 461, 465,
470, 496, and 497 (hereinafter collectively referred to as “FPPC Forms”); (2) at the option of the
City, availability of FPPC Forms in an electronic format to be available (in redacted form) for
public viewing of documents over the Internet through a link on the City’s website; (3)
maintaining a database of the FPPC Forms to track filings and generate filing deadline and
amendment letters and (4) allow the City to scan FPPC Forms not submitted electronically.
C. Scope of Service
1. From the date of execution of the service agreement, NetFile will continue to
maintain a system that:
(a) For Filers Using the Internet:
i. Allows the City to provide to Filers who have their own access to the Internet, a user ID
and password which is used to log on to a secure site hosted on NetFile’s web server but
accessible via the City’s web site.
ii. Allows Filers who have their own access to the Internet, to log on to, enter data in, and
upload to NetFile’s secure site electronic formats of FPPC Forms.
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iii. Once the forms have been uploaded, NetFile’s secure site validates the submitted filing
and notifies the Filer that the filing was accepted or, if declined, explains why the filing
was declined.
iv. Allows Filers to print a copy, using Adobe Acrobat Reader, of the forms that they upload
to NetFile’s secure site.
v. Allows Filers to access earlier validated electronically filed forms.
(b) For the City:
i. Allows tracking of Filers and all electronically filed forms in a database.
ii. Allows City to scan hard copy filings and post to the online searchable database provided
a liability waiver is signed by the City absolving NetFile of any liability associated with
manually redacted documents not under the control of NetFile during the redaction
process.
(c) For All FPPC Forms Uploaded to NetFile’s Secure Site:
i. Produces two versions in .pdf format of the FPPC Forms: one version, not accessible by
the public, will include all information as filed (non-redacted); the other version, at the
option of the City, accessible by the public, will have all street addresses and bank
account information, if applicable, blocked from view.
(d) For the Public:
i. At the option of the City, allows the public to search and view electronically filed
documents (with street addresses and bank account information, if applicable, blocked
from view) over the Internet.
ii. If a document was not available electronically, NetFile’s secure site will notify the
searcher that the document is available for viewing in the office of the City Clerk.
2. NetFile’s system will, among other things:
• Issue an ID number and password for Filers.
• Grant different user access and security levels for City staff.
• Store and edit general information about Filers.
• Store and edit all filings by individual statement periods where applicable.
• Generate notification letters telling the filer of the upcoming filing deadline.
• Indicate how filings were received.
• Track deadlines for filings and amendments and generate letters notifying Filers of
delinquencies.
• Track delinquencies and generate letters notifying Filers of fines.
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• At the option of the City, allow the public to search and view the database and complete
list of electronic filings (with addresses and bank account information, if applicable,
redacted) via the Internet.
• At the option of the City, allow the public to search and view the database and complete
electronic filings (without addresses and bank account information redacted) on kiosk
provided by the City located in office.
• Have sufficient back-up hardware and/or software and/or policies and procedures to
ensure that data under the control of NetFile, relative to this Agreement, is not
irretrievably lost or destroyed.
3. NetFile will also:
• Provide unlimited support to the City staff by email or phone during NetFile’s normal
working business hours.
4. All intellectual property, including existing source code or additional source code written
for the purpose of developing this system for the City, will be the sole property of NetFile.
If NetFile were to cease operations during the contractual period, NetFile would provide to
the City all source code relative to the City’s system.
D. Performance Standards
Performance standards are based upon providing deliverables according to the timeline for
performance as determined by Project Manager (City Clerk), and whether the system meets the
expected outcome in terms of timeliness and functionality. NetFile servers have a guaranteed
uptime of 99%.
LIMITATION OF LIABILITY
The maximum liability to the City by NetFile and its licensors, if any, under this agreement, or
arising out of any claim by the City related to NetFile’s services, products, equipment or
software for direct damages, whether in contract, tort or otherwise, shall be limited to the total
amount of fees received during the last 12 months by NetFile from the City hereunder up to the
time the cause of action giving rise to such liability occurred. In no event shall NetFile or its
licensors be liable to the City for any indirect, incidental, consequential, or special damages
related to the use of NetFile’s services, products, equipment or software or NetFile’s failure to
perform its obligations under this agreement, even if advised of the possibility of such damages,
regardless of whether NetFile or its licensors are negligent. Provided, however, that for any peril
or exposure insured against under the insurance required pursuant to Exhibit B, the limits of
liability to City by NetFile shall not be less than the amount of applicable, valid, and collectible
insurance set forth in Exhibit B.
EXHIBIT B
INSURANCE COVERAGE REQUIREMENTS
Netfile shall procure and maintain insurance, for the duration of the
Agreement, against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work
hereunder and the results of that work by Netfile, its agents,
representatives, employees or subcontractors.
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance
Services Office Form CG 00 01 covering CGL on an
“occurrence” basis, including products and completed
operations, property damage, bodily injury and personal
& advertising injury with limits no less than $1,000,000
per occurrence. If a general aggregate limit applies, either
the general aggregate limit shall apply separately to this
project/location (ISO CG 25 03 or 25 04) or the general
aggregate limit shall be twice the required occurrence
limit.
2. Professional Liability (Errors and Omissions) Insurance
appropriates to Netfile’s profession, with limit no less than
$1,000,000 per occurrence or claim.
If the Netfile maintains broader coverage and/or higher limits
than the minimums shown above, the City requires and shall be
entitled to the broader coverage and/or the higher limits
maintained by Netfile. Any available insurance proceeds in
excess of the specified minimum limits of insurance and
coverage shall be available to the City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the
following provisions:
Additional Insured Status
The City, its officers, officials, employees, and volunteers are
to be covered as additional insureds on the CGL policy with
respect to liability arising out of work or operations performed
by or on behalf of Netfile including materials, parts, or equipment
furnished in connection with such work or operations. General
liability coverage can be provided in the form of an endorsement
to Netfile’s insurance (at least as broad as ISO Form CG 20 10 11
85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG
20 37 forms if later revisions used).
Primary Coverage
For any claims related to this contract, Netfile’s insurance
coverage shall be primary insurance primary coverage at least
as broad as ISO CG 20 01 04 13 as respects the City, its officers,
officials, employees, and volunteers. Any insurance or self -
insurance maintained by the City, its officers, officials,
employees, or volunteers shall be excess of Netfile’s insurance
and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall state that coverage
shall not be canceled, except with notice to the City.
Waiver of Subrogation
Netfile hereby grants to City a waiver of any right to subrogation
which any insurer of Netfile may acquire against the City by
virtue of the payment of any loss under such insurance. Netfile
agrees to obtain any endorsement that may be necessary to affect
this waiver of subrogation, but this provision applies regardless
of whether or not the City has received a waiver of subrogation
endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the
City. The City may require Netfile to purchase coverage with a
lower retention or provide proof of ability to pay losses and
related investigations, claim administration, and defense
expenses within the retention. The policy language shall provide,
or be endorsed to provide, that the self -insured retention may be
satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in
the state with a current
A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to
the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before
the date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be
provided for at least five
(5) years after completion of the contract of work.
3. If coverage is canceled or non-renewed, and not replaced
with another claims-made policy form with a Retroactive
Date prior to the contract effective date, Netfile must
purchase “extended reporting” coverage for a minimum of
five (5) years after completion of contract work.
Verification of Coverage
Netfile shall furnish City with original Certificates of Insurance
including all required amendatory endorsements (or copies of the
applicable policy language effecting coverage required by this
clause) and a copy of the Declarations and Endorsement Page of
the CGL policy listing all policy endorsements to City before
work begins. However, failure to obtain the required documents
prior to the work beginning shall not waive Netfile’s obligation to
provide them. The City reserves the right to require complete,
certified copies of all required insurance policies, including
endorsements required by these specifications, at any time.
Subcontractors
Netfile shall require and verify that all subcontractors maintain
insurance meeting all the requirements stated herein, and Netfile
shall ensure that City is an additional insured on insurance
required from subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including
limits, based on the nature of the risk, prior experience, insurer,
coverage, or other special circumstances.