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HomeMy WebLinkAbout2009-09-22; City Council; 19969; Assetworks fleet software agreement approvalCITY OF CARLSBAD - AGENDA BILL AB* 19.969 MTG. 9/22/09 DEPT. PW/GS ADDD/^WAI f*\C AODCCH/ICMTO XA/ITLJ ACCCT\A/ODl^GArrKUVAL Ur AoKttMtlN I o VVI I n Aoot I VVUKJvo, INC. TO PROVIDE A COMPUTERIZED FLEET MANAGEMENT SOFTWARE SYSTEM DEPT. HEAD /%tf^ CITY ATTY. (^J5£J CITY MGR. [^—- RECOMMENDED ACTION: Adopt Resolution No.2009-236 approving a Professional Services Agreement, a Software License Agreement, a Software Maintenance Agreement, and a Software Application Service Provider Agreement with AssetWorks, Inc. for the purchase, implementation maintenance, and hosting of a computerized fleet management software system. ITEM EXPLANATION: Fleet Operations has been using Maintstar, a computerized fleet maintenance software system provided by Bender Engineering since 1999. Over the ensuing years this system has become increasingly inadequate and inflexible in managing the needs of the city's fleet. The current system has many significant deficiencies that impede efficient and cost effective operations of the city's fleet. Some examples include: • There is no online method for those who use fleet services to schedule maintenance or view progress of their maintenance. • Financial data is either not available or cannot be derived from MaintStar, limiting the ability of Fleet to make informed, data-driven decisions. • Getting necessary data from the system is very difficult, labor intensive and often requires many hours of assistance from IT Staff, and in some cases the vendor. • The current system is incapable of managing the fleet replacement program requiring creation of dozens of manually updated spreadsheets. • Preventative maintenance scheduling is problematic and very limiting. Staff must manually develop maintenance schedules for over 400 assets. • The current system is unable to issue or manage electronic work orders. All work orders are issued as paper documents and services performed must be entered into the system manually. • Fleet management reports are inadequate for determination of in-sourced versus out- sourced maintenance costs. • The current system does not provide an audit trail for parts issuance. • The current system lacks the ability to prevent co-mingling of Enterprise fund sources and General fund sources. • Vendor support is limited and application improvement updates are infrequent. DEPARTMENT CONTACT: Dale A. Schuck, (760) 802-5788, dschu(o)ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY COUNCIL ACTION: APPROVED tf DENIED U CONTINUED D WITHDRAWN d AMENDED D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D Page 2 Recognizing the deficiencies in the current Fleet Management software, in FY 2007-08 Public Works established a multi-year goal to upgrade or replace the existing system. A goal team was created that included staff from Fleet, Finance, Public Works and Police. Resources from Public Works Administration and Information Technology also supported the goal team's efforts. Under the guidance of the Information Technology Governance Committee, various solutions were reviewed and evaluated. Staff evaluated the latest version of the current software system, evaluated other software systems utilized by the City and evaluated other fleet specific solutions available through cooperative purchasing agreements from public agency sources. Vendors made multiple presentations of their solutions and at the conclusion of the presentations and demonstrations, the goal team determined that FASuite software available from AssetWorks, Inc. was comparable in cost to other solutions and would best meet the needs of Fleet Operations. Staff made presented the findings to the Information Technology Governance Committee and the City Leadership Team and received their approval of recommended actions. FASuite by AssetWorks, Inc. is a vast improvement over the existing system in both functionality and vendor support. The proposed new system addresses all of the fore-mentioned shortcomings of the current system and provides the following additional cost saving features that are not available in the current system: • Automated email notification to fleet users when vehicles are scheduled for service and also when vehicle service is complete and ready for pickup. • In a user self-service model, there is an online customer portal for making service requests and viewing vehicle status. • A vehicle replacement and performance modeling module to assist in making cost effective vehicle maintenance, replacement and procurement decisions. • An easy to use and flexible maintenance scheduling function. • An inventory function with bar code scanning that allows inventory to be performed with a handheld device and also provides a full audit trail. • Over two hundred standard fleet management reports to assist in making decisions regarding current and future business practices. • A query function that allows the Fleet managers to download user defined data for immediate custom report writing. • Full vendor support 24 hours a day, 7 days a week. Section 3.28.100 of the Carlsbad Municipal Code allows the Purchasing Officer to purchase equipment through cooperative purchasing programs with other public agencies when the agency has made its purchase in a competitive manner. The Federal Government issued RFP's under the Federal Acquisition Regulation, for Fleet Management software and issued contracts to AssetWorks, Inc. This bid included a public agency clause, allowing other governmental agencies to purchase like materials and services under a cooperative purchasing arrangement. ENVIRONMENTAL IMPACT: Procurement of software and services is not a project and is, therefore, exempt from the environmental review process under provisions of the California Environmental Quality Act (CEQA). Page 3 FISCAL IMPACT: Fleet Operations estimates 750 hours of Fleet staff are spent each year to work around the deficiencies of the current system. This includes such tasks as: • manually extracting data from the system • reconciling erroneous data output • manually generating preventative maintenance schedules • manually inputting completed work order data • running and combining multiple reports to support singular processes • performing manual inventory functions The Fleet Superintendent estimates that the shortfalls in the current system result in unproductive staff time costs of approximately $20,000 per year. Implementation of FASuite application by AssetWorks will eliminate this waste and allow staff to concentrate on business process improvements, analyzing department efficiencies and developing other cost savings strategies. The total first year cost for the software licensing, professional services, software maintenance, application hosting and hardware is estimated at $121,097. In addition, the agreements contain ongoing software maintenance and application hosting costs. The annual costs for the second and third year for software maintenance and hosting are estimated at $23,000 per year. The total implementation and maintenance costs for the first three years are estimated at $167,530. A chart with the annual cost breakdown is included below (AssetWorks, Inc Annual Cost Breakdown - Table 1). Council is advised that Fleet Operations pays the current software vendor approximately $6,800 per year for maintenance and support. This amount should be deducted from future costs resulting in an annual expenditure increase of approximately $16,200. This increase is primarily due to annual hosting of the application by AssetWorks. To determine the best way to deploy the FASuite application Information Technology (IT) department staff looked at two scenarios (1) a "hosted solution" where the application resides at a third party's data center and is managed by the third party and (2) the application resides at the City's data center and is managed by City IT staff. A Total Cost of Ownership (TCO) analysis was done on each scenario listed above and the hosted solution was determined to be the most cost and resource effective manner to deploy and support the FASuite application. The hosted solution provides for increased redundancy; 24/7 monitoring, support and availability; simplified deployment and reduced reliance of City IT staff for routine support and maintenance functions. As such, the IT department recommends deployment of FASuite as a "hosted solution" provided, managed and supported by AssetWorks, Inc. Council is advised that the professional services in the initial year are paid on a time and material basis. Professional services cost may be lower depending upon the level of staff resources that Public Works can assign to the project. As part of a software replacement goal, $100,000 was appropriated in the Fleet Maintenance and Fleet Replacement budgets in FY 2008-09, and carried forward to FY 2009-10, to complete this purchase. The additional first year costs of approximately $21,097 will be funded from current and prior year budget savings. No additional appropriation is being requested at this time. The cost of this solution will be borne by both the Fleet Maintenance and Fleet Replacement budgets, as it will be used for both maintenance purposes as well as managing the fleet replacement program. Page 4 COMPUTERIZED FLEET MAINTENANCE SOFTWARE SYSTEM - ASSETWORKS, INC ANNUAL COST BREAKDOWN - Table 1 AGREEMENT Professional Services Software License Hardware Software Maintenance Application Services TOTAL COST YEAR ONE $ 63,470 $ 22,983 $ 4,508 $ 5,156 $ 24,980 $121,097 YEAR TWO $ 5,414 $17,667 $23,081 YEAR THREE $ 5,685 $17,667 $23,352 TOTALS $ 63,470 $ 22,983 $ 4,508 $ 16,255 $60,314 $167,530 EXHIBITS: 1. Resolution No.2009-236 approving a Professional Services Agreement, a Software License Agreement, a Software Maintenance Agreement, and a Software Application Service Provider Agreement with AssetWorks, Inc. for the purchase, implementation maintenance, and hosting of a Computerized Fleet Management System. 2. Professional Services Agreement with AssetWorks, Inc. 3. Software License Agreement with AssetWorks, Inc. 4. Software Maintenance Agreement, with AssetWorks, Inc. 5. Software Application Service Provider Agreement with AssetWorks, Inc. 1 RESOLUTION NO. 2009-236 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, APPROVING A PROFESSIONAL SERVICES 3 AGREEMENT, A SOFTWARE LICENSE AGREEMENT, A SOFTWARE MAINTENANCE AGREEMENT, AND A SOFTWARE A APPLICATION SERVICE PROVIDER AGREEMENT WITH ASSETWORKS, INC. TO PROVIDE A COMPUTERIZED FLEET MANAGEMENT SOFTWARE SYSTEM.o _ WHEREAS, the Public Works MSA has recognized the need to upgrade or replace theo current Fleet Management Software system; and 0 WHEREAS, a goal team was established that reviewed and evaluated various solutionso g including upgrading the current system, transitioning to other software systems currently in use by 1Q the City and reviewed other solutions available through cooperative purchasing agreements with 1 .j other public agencies; and ^2 WHEREAS, staff reviewed and evaluated these solutions and recommended the 13 procurement of a solution from AssetWorks, Inc. to the Information Technology Governance 14 Committee and the City Leadership Team ; and 15 WHEREAS, the Information Technology Governance Committee and the City 16 Leadership Team evaluated and subsequently approved the recommendation of the procurement 17 of software and services from AssetWorks, Inc.; and 18 WHEREAS, the State of California used formal bidding procedures to establish the cost 19 of procurement of Fleet Management Software and Implementation Services, which included a 20 clause allowing other public agencies to procure software and services as awarded by the Federal 21 Government; and 22 WHEREAS, the City has procured a quote from AssetWorks, Inc. to provide a 23 Professional Services Agreement, a Software License Agreement, a Software Maintenance 24 Agreement, and a Software Application Hosting Agreement with AssetWorks, Inc. for the 25 purchase, implementation and maintenance of a Computerized Management System, in 26 accordance with the cooperative purchasing clause for the bid awarded by the Federal 27 Government; and 28 1 2 3 4 5 6 7 8 23 24 25 26 27 28 WHEREAS, $100,000 was previously appropriated in the Fleet Maintenance and Fleet Replacement budgets in Fiscal Year 2008-09, and carried forward to Fiscal Year 2009-10, for the purchase and implementation of a computerized Fleet Management Software system; and WHEREAS, an additional $21,097 is available to fund this purchase in the Fleet Maintenance and Fleet Replacement FY 2009-10 budgets; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. Q 2. That the Mayor of the City of Carlsbad is hereby authorized and directed to 10 execute a professional services agreement with AssetWorks Inc, for an amount not-to-exceed 11 $63,470. 12 3. That the Mayor of the City of Carlsbad is hereby authorized and directed to 13 execute a software licensing agreement with AssetWorks Inc, for an amount not-to-exceed 14 $22,983. 15 4. That the Mayor of the City of Carlsbad is hereby authorized and directed to 16 execute a software maintenance agreement with AssetWorks Inc, for an amount not-to-exceed 17 $16,255 for a three year term. 18 5. That the Mayor of the City of Carlsbad is hereby authorized and directed toi y execute an application service provider agreement with AssetWorks Inc, for an amount not-to-20 exceed $60,314 for a three year term. 6. That the Fleet Superintendent is authorized to initiate a purchase order with AssetWorks, Inc. for a Professional Services Agreement, a Software License Agreement, a Software Maintenance Agreement, a Software Application Hosting Agreement and procurement of associated computer hardware with AssetWorks, Inc. for the purchase, implementation and maintenance of a Computerized Fleet Management system. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of September. 2009, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn NOES: None. ABSENT: None. >, Mayor ATTEST: LORRAINE (SEAL) AGREEMENT FOR FLEET MAINTENANCE IMPLEMENTATION SERVICES ASSETWORKS, INC THIS AGREEMENT is made and entered into as of the >Ae> day of 0 tf\ , by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and AssetWorks, Inc., a Delaware corporation, ("Contractor"). RECITALS A. City requires the professional services of a software vendor that is experienced in Fleet Maintenance software. B. Contractor has the necessary experience in providing professional services and advice related to the sale, implementation, training and support of Fleet Maintenance software. C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of 1 year from the date first above written. 4. PROJECT TIME The parties will mutually agree on a project plan for the term of the agreement. . 5. COMPENSATION The services quoted are on a time and materials basis, based on AssetWorks current understanding of the project. AssetWorks will invoice for only the time, materials and expenses incurred. The total fee payable for the Services to be performed during the initial Agreement term shall not exceed sixty four thousand dollars ($64,000). No other compensation for the Services will be allowed except for items covered by subsequent City Attorney Approved Version #05.06.08 amendments to this Agreement. Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". Receipts are required for reimbursement for travel expenses. 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION AND LIMITATION OF LIABILITY Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising directly out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. City Attorney Approved Version #05.06.08 -, 2 °\ The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. NEITHER CITY, CONTRACTOR NOR CONTRACTOR' SUBCONTRACTORS WILL BE LIABLE FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE SERVICES PROVIDED BY CONTRACTOR EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. CONTRACTOR SHALL NOT HAVE LIABILITY FOR (I) LOSS OF INCOME, PROFIT, OR SAVINGS, WHETHER DIRECT OR INDIRECT, (II) LOST OR CORRUPTED DATA OR SOFTWARE, OR (III) PRODUCTS NOT BEING AVAILABLE FOR USE. EXCEPT FOR CLAIMS THAT THE SERVICES CAUSED BODILY INJURY (INCLUDING DEATH) OR PROPERTY DAMAGE DUE TO CONTRACTOR' NEGLIGENCE OR WILLFUL MISCONDUCT, CONTRACTOR' TOTAL LIABILITY ARISING OUT OF, OR IN CONNECTION WITH, ANY SERVICES PURCHASED PURSUANT TO THIS AGREEMENT SHALL NOT EXCEED $125,000.00. THIS LIMITATION SHALL NOT APPLY TO ANY CLAIM COVERED BY CONTRACTOR'S INSURANCE NOR LIMIT THE CITY'S RIGHTS TO PURSUE SUCH INSURANCE COVERAGE. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VH". OR with a surplus line insurer on the State of California's List of Eligible Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X". 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless City Attorney or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will City Attorney Approved Version #05.06.08 (o obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. 10.1.1 Commercial General Liability Insurance. $1.000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability (if the use of an automobile is involved for Contractor's work for City). $1,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The City will be named as an additional insured on General Liability. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these City Attorney Approved Version #05.06.08 payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS 13.1 City and Contractor shall each retain ownership of, and all right, title and interest in and to, their respective pre-existing Intellectual Property, and expressed as stated in this Agreement, no license is granted as a result of the Services performed hereunder. To the extent the parties wish to grant to the other rights or interests in pre-existing Intellectual Property, separate license agreements on mutually acceptable terms will be executed. 13.2 Contractor grants to City a royalty-free, paid up, worldwide, perpetual, non- exclusive, non-transferable license to use any Contractor Intellectual Property incorporated into any Deliverable, solely for City's use of that Deliverable for its internal business purposes. Contractor shall retain ownership of and unrestricted right to use any Intellectual Property derived in any fashion or manner from its pre-existing Intellectual Property. The Services performed and any Deliverables produced pursuant to this Agreement are not "works for hire." 13.3 As used herein, "Intellectual Property" shall mean inventions (whether or not patentable), works of authorship, trade secrets, techniques, know-how, ideas, concepts, algorithms, and other intellectual property incorporated into any Deliverable whether or not first created or developed by Contractor in providing the Services. 14. COPYRIGHTS City Attorney Approved Version #05.06.08 Contractor will defend, at its own expense, any action brought against City to the extent that it is based on a claim that the Contractor Software infringes a United States patent or copyright, and Contractor will pay those costs and damages finally awarded against City in any such action that are attributable to any such claim, but such defense and payments are conditioned on the following: (1) that Contractor shall be promptly notified in writing by City following its receipt of any such claim; (2) that Contractor shall have sole control of the defense of any action on such claim and all negotiations for its settlement or compromise; (3) should the Software become, or in Contractor' opinion is likely to become, the subject of a claim of infringement of a United States patent or copyright, then City shall permit Contractor, at its option and expense, either to (A) procure for City a non-infringing license to use the Software; (B) modify the Software so that it becomes non-infringing; (C) procure for City a depreciated credit for the Software and accept its return. Depreciation shall be an equal amount per year from the date of receipt of the Software, which the parties agree shall be five (5) years. Contractor shall have no liability to City under any provision of this clause with respect to any claim of patent or copyright infringement that is based on City's unauthorized use or combination of the Software with software or data not supplied by Contractor as part of the Software. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City: Name Gordon Peterson Title Information Technology Director Department Information Technology City of Carlsbad Address 1635 Faraday Av Carlsbad. CA 92008 For Contractor: Name: John Mines Title: President Address: 998 Old Eagle School Road Wayne, PA 19087 Phone No. Phone No. 760-602-2454 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST City will evaluate Contractor's duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and City's Conflict of Interest Code is required of Contractor or any of Contractor's employees, agents, or subcontractors. Should it be determined that disclosure is required, Contractor or Contractor's affected employees, agents, or subcontractors will complete and file with the City Clerk those schedules specified by City and contained in the Statement of Economic Interests Form 700. City Attorney Approved Version #05.06.08 Contractor, for Contractor and on behalf of Contractor's agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Contractor further warrants that neither Contractor, nor Contractor's agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Contractor will file with the City an affidavit disclosing this interest. 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. City Attorney Approved Version #05.06.08 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement upon fifteen (15) days notice for nonperformance by notifying Contractor by certified mail of the reason for termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination for reasons other than abandonment or indefinitely postponed work or services, Contractor has fifteen (15) days to cure the breach; if Contractor fails to cure by the fifteenth day, the Agreement will terminate and Contractor will have five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq.. the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges City Attorney Approved Version #05.06.08 8 that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. City Attorney Approved Version #05.06.08 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR kBy: LORRAINE City Clerk :t^ (e-mail address) If required by City, proper notarial acknowledgment of execution by must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. 'Group A. Chairman, President, or Vice-President **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney Bv: QbJLQLr- Assistant City Attorney 10 City Attorney Approved Version #05.06.08 i7 AssetWORKS CERTIFICATE OF AUTHORITY I do hereby certify that by authority of the Directors of AssetWorks Inc. that John H. Hines III, President of AssetWorks, is authorized and empowered to make, enter into, sign, seal and deliver on behalf of AssetWorks Inc. contracts for the sale and license of AssetWorks products and services. I do hereby certify that said authority has not been amended or repealed and is in full force and effect as of this date and that John H. Hines III is the duly elected President of AssetWorks Inc. Attest: Brian Beattie Secretary of AssetWorks Date Signed: ooo 998 Old Eagle School Road, Suite 1215 | Wayne, PA 19087 | 7:610.687.9202 | F: 610.971.9447 | www.assetworks.com Commonwealth of Pennsylvania ) )SS: County of Chester ) Before me, the undersigned notary public, this day, personally, appeared_John H. Mines, III and R. David Sadoo to me known as President and Vice President of AssetWorks Inc. respectively. Subscribed and sworn to before me this 17 day of August 2009 . L Notary Public Commonwealth <->f o,..nn HOTARih. . JUOlfHL_SONS.r;CTownship .Chester nsylvania COPY EXHIBIT "A" SCOPE OF SERVICES Introduction AssetWorks is pleased to partner with the City of Carlsbad (Carlsbad) for a successful implementation of the FASuite asset and maintenance management application. This proposal identifies the tasks and estimated costs required for the implementation of the FASuite solution. This Statement of Work is based on AssetWorks' current understanding of the requirements and AssetWorks' previous experience with similar engagements. To best facilitate the implementation, AssetWorks urges Carlsbad to formally identify a focal point for each of the critical business groups who will participate in or be affected by the project implementation. This involvement must come from all parties. These focal points should be both technically qualified and knowledgeable of their groups' business practices. These individuals will be responsible for spearheading the system configuration, data mapping, and workflow tasks to ensure a feasible and effective production rollout. Estimated Pricing AssetWorks FASuite Implementation Time and Materials Estimate Project Management Services Hardware Procurement and Installation Software Installation Services System Setup and Configuration Services Automated Fuel Interface Data Conversion Services (Equipment Master and Parts Master Records) Data Conversion Services (Work Order Summary) Ad Hoc Query Services Custom Report Development System Training Services Rollout Services Travel Budget (estimated, AssetWorks Estimated Estimated Subtotal will invoice actuals) 32 - 0 40 16 40 40 8 32 62 40 310 Hours Estimated Cost hrs hrs hrs hrs hrs hrs hrs hrs hrs hrs hrs hrs Fleet Software-Estimated Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ 6,240.00 - - 7,800.00 3,120.00 7,800.00 7,800.00 1,560.00 6,240.00 12,090.00 7,800.00 60,450.00 3,020.00 63,470.00 11 City Attorney Approved Version #05.06.08 FleetFocus Work Plan WBS A. 1.0 Project Management Services Project kick-off and planning AssetWorks will conduct a kick-off conference call with the Carlsbad project leaders to introduce project stakeholders, review team roles, review project tasks and finalize the project schedule. After the call, AssetWorks will revise the project tasks and schedule as necessary. AssetWorks will provide the revised schedule to Carlsbad. AssetWorks recommends Carlsbad appoint a core project team with representatives from all functional or operational areas of Carlsbad's fleet maintenance operation. This core group must have the authority and charter to make appropriate decisions regarding the implementation. The core group representatives should have complete knowledge and familiarity with Carlsbad's operations and objectives, and will form the majority of the roll-out team later in the project. The Carlsbad project team will define their roles and responsibilities and establish project standards and controls. Carlsbad will appoint a Project Manager, a Maintenance Project Lead, and supporting personnel from the designated Carlsbad functional and operational areas. The Carlsbad Project Manager will lead the overall Carlsbad project team and be responsible for the Carlsbad personnel and resources on the project. The Maintenance Project Lead will be responsible for the configuration and implementation of FASuite and for facilitating decisions among the core maintenance group. Project management and oversight AssetWorks will provide project management and oversight services to execute the project plan. The AssetWorks project manager will coordinate AssetWorks project activities. AssetWorks will provide the following project management services: • Coordination of project resources and work so that milestones are met in an efficient manner; tasks will be designed so as to minimize implementation time and cost while taking into consideration resource and time constraints such as Carlsbad staff availability • Serve as the main point of contact for the Carlsbad Maintenance Lead and project manager City Attorney Approved Version #05.06.08 12 • Provide updates every month to the work plan and project budget The AssetWorks Project Manager will ensure that sufficient resources are available to implement the system in accordance with the project requirements. The AssetWorks Project Manager will monitor the project resources to ensure quality delivery of services and that the deliverables are completed in accordance with the project requirements. AssetWorks will assign a senior-level program manager to provide additional subject matter expertise, monitor the project resources and budget, and ensure quality delivery of services. This manager is Carlsbad's first escalation point for any issues arising during the project. Deliverable for Project Management Services • Participation in the project kick-off conference call • Revision of project schedule • Updates to relevant status reports City Attorney Approved Version #05.06.08 --, -2 13 ^ WBS A.2.0 Hardware Procurement and Installation AssetWorks hosting service will set up FASuite to run in the following tiers: • FASuite InfoCenter: the browser user interface • FASuite GUI: the presentation layer (graphical user interface) • FASuite APR: the application • FASuite database: the database For this implementation, AssetWorks will deploy FASuite on the Oracle Relational Database Management System (RDBMS). Workstation Specifications Recommendations For all configurations, client workstations should be at least 200 MHz Pentium- based computers running Windows 2000/XP. We recommend at least 128 MB of RAM. The FASuite GUI and InfoCenter require a minimum display resolution of 1024 x 768 for proper viewing. AssetWorks recommends a machine that meets the following specifications: 256MB RAM 10GB HDD Mouse and Keyboard 17" Monitor Windows 98/2000/XP 10/100 Ethernet NIC Additional Requirements for Any Configuration In addition to the above, AssetWorks also recommends Carlsbad procure the following: • An appropriate number of printers • AssetWorks recommends 17" monitors in order to take better advantage of the FASuite screen and window capabilities AssetWorks will not be responsible for any site preparation or construction or communications or cabling infrastructure. Deliverable for Hardware Specification • Hosting Service Initiation as per the Application Service Provider Agreement City Attorney Approved Version #05.06.08 14 WBS A.3.0 Software Installation Services Installation preparation AssetWorks will provide software hosting services, which includes software installation services. Please refer to the Hosting Services Agreement for details on installation and upgrade services. Deliverable for Software Installation Services • Installation of AssetWorks software City Attorney Approved Version #05.06.08 "2L ( 15 WBS A.4.0 System Setup and Configuration Services System Setup Consulting AssetWorks recommends Carlsbad appoint a project lead and a small project team to complete this project. Carlsbad should involve every department, and each department should participate and provide input on these critical implementation decisions. Decisions made during this phase of the project will have a direct effect on the work flow in the roll-out of FASuite. This group must have the authority and charter to make appropriate decisions regarding the FASuite implementation. The group representatives should have complete knowledge and familiarity with the operation, including maintenance, engineering, parts inventory, and procurement. The group members should be familiar with the current processes and systems. AssetWorks will lead the session to complete the coding conventions for equipment numbering, equipment classes, repair codes, PM schedules, PM parameters, PM checklists, and other items. We will also finalize the work flow for all job functions, including work order management and parts inventory management. System setup consulting is very much a dialogue and exchange of information where the Carlsbad project team will plan the overall integration of FASuite into Carlsbad operation under the guidance of AssetWorks' application experts. Carlsbad's preparation for this engagement includes the assimilation and distribution of relevant inventory, purchasing, operations, and maintenance data prior to the meeting. The goal for these meetings is to achieve at least 90% of the standard coding schemes and business practices required for system rollout. Finalize data definition, and processes Carlsbad will take action items from the System Setup Consulting to finalize the definition of all relevant FASuite data elements and work processes, including maintenance, parts management, procurement, and other job functions. Carlsbad's deliverable for this task is complete documentation of Carlsbad's definitions for all applicable FASuite data elements. This deliverable is a critical prerequisite to the development of the training material for the roll-out. AssetWorks will work with Carlsbad to prepare this documentation. AssetWorks will work with the team to configure FASuite per the discussed work flow. This configuration will build on the setup defined with the Carlsbad core team and will focus on specific decisions, such as location options, department City Attorney Approved Version #05.06.08 "2, ~) 16 settings, etc. This task will occur as soon as possible after the System Setup Consulting engagement. Deliverable for Business Process Services • Coding structure and data definition workshop(s) City Attorney Approved Version #05.06.08 17 WBS A.5.0 Integration and Technical Services Fuel Transactions - Automated Fuel Interface To provide a very straightforward and flexible solution, AssetWorks proposes that Carlsbad use FASuite's Automated Fuel Systems screen (shown below) to define its fuel interface. The base application includes this screen, with which end users can create fuel interface definitions for use with the Automated Fuel Tickets screen. Using this screen, Carlsbad could build many of its own batch interfaces for processing fuel transactions. Hr- iJ Flfe'l File Edit Action Data Queries/Reports System Mgmt View Preferences Window Help -s Row Fuel system ID Fuel system name System available Fuel System Description | Processing Rules - General j Processing Rules - Fuel j Processing Rules - Fluids Other Transactions j Data Format j Fuel system ID PUTT Name [AUTOMATED FUEL INTERFACE ttl & System available Transaction format information Date format Transaction format COMMA-SEPARATED Transaction record length Minimum J25 Maximum flSCT 9 Transactions separated by newline characters MMDDYT MM/DDAY MM-DD-YY MMDDYYYY MMDD YYMMDD YV7MM/DD YVYYMMDD YYYY/MM/DD YYDDD YDDD DDD DD-MON-YY DD/MMAYYY Time format Skip transactions beginning with |X Pud System Description ; Processing Rules - Geneial i Piocessing Rdes - Fuel i Processing Rules - Fluids : Other Transactor!! Data Format Fuel system ID 345" fj i Desciiptive data itei Quantitative del a items Row Delete *.* ; Data type EQUIPMENT ID DATE ACCOUNT ID Starting position 21 36 40 Length 12 12 50 Field number Right aligned -«- V Row Delete * Data type METER 1 READING FUEL QUANTITY Starting position 90 97 Length 6 4 Field number Decimal point E -*"• X < > Fuel system ID 345 [T] > ' Equipment ktentifiei EQUIPMENT ID FUEL CARD 10S^EHK33L CREDIT CARD OPER Custom processing AssetWorks will assist Carlsbad in defining its fuel interface using FASuite's Automated Fuel Interface feature. Carlsbad will provide AssetWorks a sample fuel file from the Gasboy and Voyager fuel systems with appropriate 18 City Attorney Approved Version #05.06.08 Tff documentation. AssetWorks may require remote control access to Carlsbad servers for this task. Integration Assumptions: There will be no interface other than those specifically described above. These interfaces will be configured using only out-of-the-box capabilities. No development effort or tailoring is included in this proposal. Deliverable for Fuel Transaction Services AssetWorks will provide the following deliverables: • Interface test plans and test results • Working interfaces as described above City Attorney Approved Version #05.06.08 19 WBS A.6.0 Data Conversion Services Data Load Preparation The AssetWorks standard procedures for developing Data Load Plans include the following: • Create a specification/data conversion plan • The Carlsbad project team reviews the specification/data conversion plan • The Carlsbad project team provides final approval of the specification/data conversion plan • AssetWorks converts data in accordance with the specification • AssetWorks and Carlsbad review converted data • AssetWorks provides documentation and a schedule and date ranges for conversions • Carlsbad gives final acceptance of successful data conversion The objective of these data conversion services is to process extracted data from the applicable Carlsbad legacy systems and map the extracted data into FASuite. Carlsbad will provide a sample of the legacy data as soon as possible. Using this sample, the team will define exactly what data will be converted from the current system and define a mapping of data into FASuite. AssetWorks will help Carlsbad finalize the data mapping and identify the specific sources for each data element. AssetWorks and Carlsbad will define which information will be loaded into FASuite. Data Conversion Process and Assumptions AssetWorks will determine the necessary data required to make the system operational (e.g., asset data, current inventory levels, etc.) and then identify, in conjunction with Carlsbad staff, what data will be available from current systems, and what data Carlsbad may have to develop. Once the data conversion specifications are completed, the Carlsbad will extract the data from its current systems. AssetWorks will be responsible for populating FASuite with approved and "clean" Carlsbad data, which Carlsbad will provide. Format of Converted Data AssetWorks assumes that all Carlsbad data files are formatted to facilitate uniform electronic conversion. AssetWorks requires that Carlsbad supply all conversion data in text documents (flat file ASCII format, according to AssetWorks specifications) with appropriate documentation. City Attorney Approved Version #05.06.08 -7 <3 20 ' AssetWorks will provide Microsoft Excel templates to assist in loading data into FASuite. AssetWorks will convert only the data fields that map into FASuite. Data fields that do not map into FASuite will not be converted. In order to enforce application logic and maintain referential data integrity during the conversion process, only data elements that can be entered on a FASuite screen are part of this conversion. Carlsbad will provide the data in the properly formatted files (per AssetWorks' specification) for loading into FASuite. AssetWorks makes the following assumptions about the data from the legacy system(s): • AssetWorks will use default values for any data element that FASuite requires that is not in the data file • Carlsbad will provide each test data file and each production data file in exactly the same format • AssetWorks will not be responsible for "scrubbing" or "cleansing" legacy Carlsbad data Carlsbad will provide a single ASCII file from each legacy application included in the scope. AssetWorks will not be responsible for converting or keying hard copy data records. Conversion of Specific Data AssetWorks and Carlsbad will jointly resolve issues arising out of the data translation, including codes (if any) to be changed. AssetWorks will help Carlsbad finalize the data mapping and identify the sources for each data element. AssetWorks and Carlsbad will identify cost information that will be loaded into FASuite. Carlsbad will be responsible for mapping old codes into new codes (i.e., translating) within the data set to be converted. Data Conversion Testing and Validation After AssetWorks and Carlsbad have jointly documented the data mapping and data load process, AssetWorks will test the results from Carlsbad's data extractions. These tests will validate the data migration strategy that the team defined in earlier stages. This process will require involvement from Carlsbad Information Technology personnel supporting the existing systems. Upon completion, AssetWorks will provide all testing results to Carlsbad for acceptance. AssetWorks will convert samples of the data for review and validation purposes. AssetWorks will assist the Carlsbad Project Manager in the validation process. City Attorney Approved Version #05.06.08 >J> 21 AssetWorks will convert the data based on the rules defined earlier in the project. Data will be converted into the development environment and validated before being converted into the production environment. Data Conversion Scope AssetWorks makes the following assumptions about the scope of data migration from the legacy system(s): • The data files for the asset master records (active units only) will be text- based flat files with one row of data per asset • The data files for the parts master records will be text-based flat files with one row of data per part • The equipment/month/year summary cost totals for active vehicle records (these data items will be loaded on the Historical Costs screen) • No other data conversion is included in this Statement of Work Upon completion of conversion to the development environment, AssetWorks will test the conversion process once by working with the Carlsbad project team to move the data (dry run) into the FASuite database. Data validation will occur, followed by one live conversion of data into the production environment. Deliverable for Data Conversion Services AssetWorks will provide the following deliverables: • Data Mapping Document for data conversion • Converted data City Attorney Approved Version #05.06.08 22 WBS A.7.0 Custom Report Development Services AssetWorks will provide up to 32 hours of design and development services to build custom reports. Deliverable for Custom Report Development Services • Report technical specification • Crystal report based on approved technical specification 23 City Attorney Approved Version #05.06.08 •'7 ^ - WBS A.8.0 Training Services Develop Training Materials Once Carlsbad approves the Training Plan, then AssetWorks will complete the training materials and begin scheduling and planning for the training. AssetWorks training materials assume all users are familiar with a Windows environment; the AssetWorks training will not include any Windows or remedial computer training. The training will cover work order functions; parts and labor posting functions; and other common features and transactions. The topics and work flows included in the training will be those finalized by the Carlsbad team during the system setup and follow-up tasks. Any deviations in the defined and agreed upon work flow will cause delays and added costs to the training. AssetWorks will provide a master electronic version for the Carlsbad Project Manager. Carlsbad will produce and provide copies (across all roles) of the final training materials for use during the training sessions. Carlsbad will be authorized to reproduce and use any training materials for ongoing training within Carlsbad Training materials (Base) Training Delivery AssetWorks will provide a total of 48 hours of class room training. AssetWorks will provide eight hours of System Administration training to the Carlsbad system administration staff and one Project Manager. Carlsbad may add additional trainees to this session up to a total of eight attendees (assuming Carlsbad's training facility has a sufficient number of workstations for training). AssetWorks will use its standard training materials, including any modifications made by Carlsbad. These trainees will be responsible for training any additional staff in the use of FASuite and for performing system administration tasks. The training will cover the following areas of FASuite: FASuite overview and orientation Users and User Group management End of Period Processing System-wide Options and Settings Use of selected standard reports Basic troubleshooting and administrative functions AssetWorks will deliver 40 hours of training to cover work order functions; parts and labor posting functions; and other common FASuite features and transactions. The topics and work flows included in the training will be those City Attorney Approved Version #05.06.08 24 finalized by the Carlsbad team during the system setup and follow-up tasks. Any deviations in the defined and agreed upon work flow will cause delays and added costs to the training. AssetWorks proposes the following training courses, but these are subject to discussion with the Carlsbad team during the engagement. Technicians (8 hr course) Orientation and system login Labor and time entry Fulfilling Parts Requests Part Primary Records and cross- references Use of selected standard reports 4 Users (estimated) Equipment and work order look- up functions Materials and parts request functions for technicians Physical inventory, adjustments, transfers Basic troubleshooting Supervisors (8 hr course) Orientation and system login Labor and time entry and management Use of selected standard reports 2 Users (estimated) Work order management functions Materials and parts request functions for managers Basic troubleshooting Materials Management (16 hr course) System login Part Primary Records and cross- references Use of selected standard reports 6 Users (Estimated) Fulfilling Parts Requests Physical inventory, adjustments, transfers Basic troubleshooting 25 City Attorney Approved Version #05.06.08 Administrative Staff 6 Users (Estimated) (8 hr course) System login Set-up Options Fuel ticket processing Batch processing User Groups and Users Reporting overview The Carlsbad team will identify a single "super user" at each shop or parts location to closely support the cutover, particularly after the training concludes. This individual will be responsible for answering initial end user questions and, most importantly, implementing subsequent changes or alterations to the documented procedures. Deliverable for Training Services • Training material master files • End user training delivery City Attorney Approved Version #05.06.08 26 WBS A.9.0 Support Live Operations Prepare for Cut-over AssetWorks will spend eight hours staging and preparing for the system roll- out/cutover. This time includes final site testing of hardware and system readiness and review of procedures with user personnel. Cutover support When Carlsbad commences live operations using FASuite, AssetWorks will be on-site to provide 16 hours of "go live" assistance for the Carlsbad fleet management operation. This step is critical to success. The AssetWorks and Carlsbad team will provide refresher training and help on the shop floors and offices to make sure the transition is as smooth as possible. This on-site support could include data imports, report development, hands-on help for the users, etc. Post cutover support AssetWorks will remain closely involved during this very sensitive period. AssetWorks will provide up to 16 hours of remote support on an as-needed basis to answer questions and make sure the cutover is progressing well. Additional on-site and off-site support is available to Carlsbad under a separate Statement of Work. City Attorney Approved Version #05.06.08 27 Preliminary Schedule AssetWorks proposes the following schedule to accomplish the FleetFocus implementation tasks described below. WBS !Task Name Duration - City of Cailsbad FASuite Project Plan 102 (lays A - FASuite Implementation Services 102 clays A.1 + Project Management Services 93 days A.2 Hardware procurement and installation 0 days A.3 + Softwai e Installation Services 1 clay A.4 + System Setup and Configuration Services 20 days A.5 +; Interface and Technical Services 5 days A.f> +: Data Conversion Services 15 clays A.7 Custom Report Development Services 10 days A.$ + Training Services 14days A.9 + Support Live Operations 25 clays A.10 + Travel and Expenses 75 days Schedule is subject to change and will be finalized once project begins. 28 City Attorney Approved Version #05.06.08 Assumptions The following general assumptions apply to this proposal: 1. This is a time and materials effort 2. AssetWorks' consulting estimates do not include installation and/or configuration of any end user computer hardware and peripheral equipment. The end user will be responsible for installing and configuring computer hardware and peripheral equipment such as printers and bar code equipment (if applicable) 3. AssetWorks will provide Application Service Provider services as per the ASP contract. 4. Carlsbad will have all of the necessary and appropriate personnel at all of the meetings for the purpose of defining the requirements of the system 5. Carlsbad is responsible for TCP/IP connectivity from all client workstations to the FASuite servers. 6. Carlsbad will appoint a single point of contact for the duration of the project. This person should have project management responsibilities and decision-making authority. This person will be the focal point of contact for AssetWorks' Customer Support department 7. Carlsbad will make appropriate technical resources available to AssetWorks' consultants 8. Carlsbad will implement this solution using a single FASuite database 9. AssetWorks will provide on-site training to Carlsbad (as outlined above) in a classroom environment suitable for training. Carlsbad will be responsible for providing and preparing the training facility 10. This proposal does not include any interfaces between FASuite and other systems. AssetWorks will provide estimates for interfaces as may be required on an as-needed basis 11. This proposal does not include any data conversion services other than those specifically described 12. This Statement of Work includes implementation support for only those optional modules listed in the task list 13. Subject to any applicable state and/or local sales tax City Attorney Approved Version #05.06.08 29 Agreement, Number CLD 0709 SOFTWARE LICENSE AGREEMENT FOR AND IN CONSIDERATION of the mutual benefits accruing and expected to accrue hereunder, this Software License Agreement ("Agreement") is made as of the 23xiday of feftemb ("Effective Date") by and between AssetWorks, with offices at 998 Old Eagle School Road, Suite 1215, Wayne, PA 19087 ("AssetWorks"), and The City of Carlsbad, with offices at 1635 Faraday Ave, Carlsbad, CA 92008 ("CUSTOMER"). Intending to be legally bound, the parties hereby mutually agree to the following terms and conditions: ARTICLE I - LICENSE A. AssetWorks grants to CUSTOMER a non-exclusive, perpetual (subject to Article V) non-transferable license for the number of users specified in Schedule 1 ("Users") to make use of the software specified in Schedule 1 (herein "Software") in either a AssetWorks1 hosted environment or on the CUSTOMER'S database servers and application servers designated in Article VII (the database servers and application servers shall be referred to as the "Enterprise"). If in CUSTOMER'S environment and any part of the Enterprise becomes temporarily inoperative the license may be extended to backup servers until such time as the Enterprise becomes operative again at which time all Software will be returned to the Enterprise. If in the CUSTOMER'S environment, CUSTOMER may replace any component of the Enterprise by giving AssetWorks prior written notice of the new servers. Except as provided above, use of Software in excess of limits defined in Schedule 1 or other than on the AssetWorks' hosted environment tor Enterprise requires additional fees. CUSTOMER'S license is to use the Software in its own business; CUSTOMER has no right to use the Software in processing work for third parties. B. CUSTOMER shall have the right to use only one copy or image of the Software for production purposes to manage up to the number of Active Equipment Units identified in the Product Schedule (Schedule 1) and shall not copy or use the Software for any other purpose except (i) for archival purposes, (ii) in connection with a disaster recovery program, and (iii) for the purpose of testing the operation of the Software, provided such testing copy shall not be used in a live production environment. CUSTOMER may increase the number of authorized Active Equipment Units by executing a subsequent Product Schedule and paying in full the applicable fees. Upon signing the subsequent Product Schedule and paying in full the applicable fees, CUSTOMER shall have the right to monitor the revised number of Active Equipment Units as set forth in the subsequent Product Schedule. "Active Equipment Unit" shall mean any in service unit to which work orders, fuel tickets, or usage tickets are posted. C. If any third party software is provided to CUSTOMER pursuant to this Agreement, such license shall be in accordance with terms set forth in Schedule 1. ARTICLE II - FEES AND PAYMENTS A. CUSTOMER shall pay AssetWorks the fees specified in Schedule 1 with the following schedule: 90% of fees will be paid upon delivery of software and 10% of fees will be paid upon satisfactory completion of all acceptance testing in the production environment. All fees are payable by CUSTOMER within thirty (30) days of receipt of invoice.. B. CUSTOMER shall be responsible for all taxes and charges assessed or imposed with respect to amounts payable hereunder, including, without limitation, state and local, occupation, sales, use or excise taxes paid or payable by AssetWorks, exclusive, however, of taxes imposed on AssetWorks' net income by the United States or any political subdivision thereof. C. CUSTOMER shall be entitled to the support described in the Maintenance Agreement, which shall commence on the date set forth in the Maintenance Agreement D. AssetWorks reserves the right to apply a late payment charge of 1.5% per month to amounts outstanding more than thirty (30) days after the date of the invoice. ARTICLE III - NON-DISCLOSURE A. Subject to the other paragraphs in this Article III, CUSTOMER agrees that the Software shall be held in confidence by CUSTOMER and shall not be disclosed to others without the prior written consent of AssetWorks, which may be withheld by AssetWorks in its sole discretion. This obligation to hold confidential does not apply to any portion of the Software (1) developed by CUSTOMER and in CUSTOMER'S possession prior to the receipt of same from AssetWorks; (2) which at the time of disclosure is part of the public domain through no act or failure to act by CUSTOMER; or (3) which is lawfully disclosed to CUSTOMER without restriction on further disclosure by another party who did not acquire same from AssetWorks. B. The CUSTOMER may copy, in whole or in part, any printed material relative to the Software that may be provided by AssetWorks under this Agreement. Additional copies provided by AssetWorks will be billed to CUSTOMER at AssetWorks' standard rates. C. Any Software provided by AssetWorks in machine-readable form may be copied by CUSTOMER for use with the designated servers to the extent necessary for archive or emergency restart purposes, to replace a worn copy, or to understand the contents of such machine-readable material. D. The CUSTOMER agrees to keep the original and any copies of that Software at the same location as the CUSTOMER'S designated servers, except that a machine-readable copy of the Software may be kept for archive or emergency restart purposes only at another facility. E. All of CUSTOMER'S records with regard to the Software shall be made available to AssetWorks at all reasonable times at AssetWorks' request, and CUSTOMER shall certify to the truth and accuracy of thereof. F. If CUSTOMER receives a request to disclose any confidential information under any Public Information Act, Open Records Act or similar law (Request), CUSTOMER shall immediately notify AssetWorks and prior to disclosure give AssetWorks an opportunity to take any protective action it deems appropriate. If AssetWorks has not responded timely to the Request, as defined by the applicable law for which the Request is made pursuant to, CUSTOMER may, in its sole discretion and without being in breach of this Agreement, respond to the Request as CUSTOMER deems appropriate. In the event that AssetWorks directs CUSTOMER not to disclose the confidential information materials sought pursuant to the Request, AssetWorks will indemnify CUSTOMER against any losses, including reasonable attorney fees and costs, sustained arising from the non- disclosure of the confidential information material requested in the Request. CUSTOMER, in its sole discretion may tender the Request to AssetWorks for response, including, any and all subsequent legal actions or challenges related to the non-disclosure. ARTICLE IV - WARRANTIES AND LIMITATION OF LIABILITY A. AssetWorks represents that it has the right to license the Software to CUSTOMER as provided in ARTICLE I. AssetWorks further represents that the Software will conform to the description contained in the User Manual but, except as provided in Article IV B, AssetWorks makes no other representations, warranty, or guarantees, express or implied, with respect to the accuracy, completeness, or usefulness of the Software, INCLUDING EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. In the event the Software fails to conform to the description contained in the User Manual, AssetWorks' sole obligation shall be to correct the errors in accordance with the provisions of Article IV E. This limited warranty is lieu of all liabilities or obligations of AssetWorks for damages arising out of or in connection with the delivery, use or performance of the Software. B. AssetWorks will defend, at its own expense, any action brought against CUSTOMER to the extent that it is based on a claim that the Software supplied by AssetWorks infringes a United States patent or copyright, and AssetWorks will pay those costs and damages finally awarded against CUSTOMER in any such action that are attributable to any such claim; provided, such defense and payments are conditioned on the following: (1) that AssetWorks shall be promptly notified in writing by CUSTOMER following its receipt of any such claim; (2) that AssetWorks shall have sole control of the defense of any action on such claim and all negotiations for its settlement or compromise; (3) should the Software become, or in AssetWorks' opinion is likely to become, the subject of a claim of infringement of a United States patent or copyright, then CUSTOMER shall permit AssetWorks, at its option and expense, either to (A) procure for CUSTOMER a non-infringing license to use the Software; (B) modify the Software so that it becomes non-infringing; (C) procure for CUSTOMER a depreciated credit for the Software and accept its return. Depreciation shall be an equal amount per year over the lifetime of the Software, which the parties agree shall be five (5) years. AssetWorks shall have no liability to CUSTOMER under any provision of this clause with respect to any claim of patent or copyright infringement that is based on CUSTOMER'S unauthorized use or combination of the Software with software or data not supplied by AssetWorks as part of the Software. C. CUSTOMER agrees to defend and hold AssetWorks harmless against any claims made by any third party against AssetWorks arising out of CUSTOMER'S use of the Software unless such claims are due to the negligence or willful misconduct of AssetWorks. D. CUSTOMER agrees that AssetWorks total liability to Customer for any and all damages whatsoever arising out of or in any way related to this Contract from any cause, including but not limited to negligence, errors, omissions, strict liability, breach of contract or breach of warranty shall not, in the aggregate, exceed fees paid to AssetWorks. In no event shall AssetWorks be liable for special, indirect, incidental, economic, consequential or punitive damages, including but not limited to lost revenue, lost profits, replacement goods, loss of technology rights or services, loss of data, or interruption or loss of use of software or any portion thereof regardless of the legal theory under which such damages are sought even if AssetWorks has been advised of the likelihood of such damages, and notwithstanding any failure of essential purpose of any limited remedy. Any claim by CUSTOMER against AssetWorks relating to this Contract must be made in writing and presented to AssetWorks within one (1) year after the date on which AssetWorks completes performance of the Services specified in this Contract. E. The warranty period for the Software shall extend for a period of 90 days from the date upon satisfactory completion of all acceptance testing. The satisfactory completion of all acceptance testing will be deemed to have occurred thirty (30) days after the software is placed into production. During the warranty period, in the event that the CUSTOMER encounters an error and/or malfunction whereby the Software does not conform to the description in the User Manual, AssetWorks will respond as follows: 1. In the event that, in the mutual and reasonable opinion of AssetWorks and the CUSTOMER, there exists an error or nonconformance to the User Manual, AssetWorks will take such steps as are reasonably required to correct the error with due dispatch. 2. In the event that, in the mutual and reasonable opinion of AssetWorks and the CUSTOMER, the error or nonconformance to the User Manual does not constitute a serious impediment to the normal intended use of the Software, AssetWorks will correct the error and distribute the correction to the CUSTOMER in accordance with AssetWorks' normal Software revision schedule. F. AssetWorks represents and warrants that the software, as delivered to the CUSTOMER, does not contain any program code, virus, worm, trap door, back door, timer, or clock that would erase data or programming or otherwise cause the software to become inoperable, inaccessible, or incapable of being used in accordance with its documentation, user manuals, either automatically, upon the occurrence of AssetWorks selected conditions, or manually on the command of AssetWorks. ARTICLE V - TERMINATION A. The license conveyed pursuant to Article I-A may be terminated by AssetWorks in the event of breach or default by CUSTOMER under this Agreement if AssetWorks notifies CUSTOMER in writing of the breach or default and CUSTOMER does not correct same within thirty (30) days of AssetWorks' written notice. B. In addition, CUSTOMER shall have the right to terminate this Agreement at any time after one (1) year from the effective date of this Agreement; provided such termination shall not relieve CUSTOMER of its obligations (1) to pay any remaining unpaid balance for the total software license fee (as per Schedule 1), and (2) to honor the terms of the Professional Services Agreement or the Software Maintenance Agreement, which were independently executed and each of which must be terminated in accordance with its terms. C. All Software and documentation supplied hereunder by AssetWorks shall be and remain the property of AssetWorks. Upon termination of this Agreement, whatever the reason, such Software and documentation and any copies thereof made by CUSTOMER pursuant to Article III-B and C shall be promptly returned to AssetWorks. ARTICLE VI - ASSIGNMENT This Agreement shall not be assigned by either party without the prior written consent of the other party, and any attempted assignment without such consent shall be void. No assignment of this Agreement shall be valid until and unless consented to in writing by the consenting part and assumed by the assignee in writing. When duly assigned in accordance with the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the assignee. ARTICLE VII - CUSTOMER'S ENTERPRISE CUSTOMER'S application server(s) and database server(s) are as follows: Server(s) Location(s) Application Server(s): Unlimited No restrictions Database Server(s): Unlimited No restrictions ARTICLE VIII - ENTIRE AGREEMENT This Agreement supersedes all prior proposals, oral or written, all previous negotiations and all other communications or understandings between AssetWorks and CUSTOMER with respect to the subject matter hereof. It is expressly agreed that if CUSTOMER issues a purchase order or other document for the services provided under this Agreement, such instrument will be deemed for CUSTOMER'S internal use only, and any provisions contained therein shall have no effect whatsoever upon this Agreement. This Agreement sets forth the sole and entire understanding between AssetWorks and CUSTOMER with respect to the subject matter. No amendments to this Agreement, either at the execution or subsequently, shall be binding on AssetWorks or CUSTOMER unless agreed to in writing by both parties. ARTICLE IX - GOVERNING LAW: DISPUTES A. This Agreement shall be governed by the law(s) of the State of California. B. EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA LOCATED IN THE CITY OF SAN DIEGO, OR IF SUCH COURT DOES NOT HAVE JURISDICTION, THE STATE COURTS OF THE STATE OF CALIFORNIA LOCATED IN THE CITY OF SAN DIEGO, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN THE COURTS REFERRED TO ABOVE, AND HEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. ARTICLE X - SCHEDULES Schedules 1 (Product Schedule) and any additional schedules specified below are hereby incorporated into this Agreement. ARTICLE XI - GENERAL TERMS 1. Neither AssetWorks nor CUSTOMER will assign or transfer its interest in this Agreement or any Attachment without the prior written consent of the other party. 2. All provisions of this Agreement, which by their nature should survive termination of this Agreement, will so survive. 3. No delay or failure by either party to exercise any right hereunder, or to enforce any provision of this Agreement will be considered a waiver thereof. No single waiver will constitute a continuing or subsequent waiver. To be valid, a waiver must be in writing, but need not be supported by consideration. 4. If any provision of this Agreement is held to be illegal, invalid or unenforceable, in whole or in part, such provision will be modified to the minimum extent necessary to make it legal, valid and enforceable, and the remaining provisions of this Agreement will not be affected. 5. Reserved. 6. Any communication or notice hereunder must be in writing, and will be deemed given and effective: (i) when delivered personally with proof of receipt; (ii) when sent by e-mail; (iii) when delivered by overnight express; or (iv) three (3) days after the postmark date when mailed by certified or registered mail, postage prepaid, return receipt requested and addressed to a party at its address for notices. Each party's address for notices is stated below. Such address may be changed by a notice delivered to the other party in accordance with the provisions of this Section. AssetWorks CUSTOMER: 998 Old Eagle School Rd. - Suite 1215 1635 Faraday Av Wayne, PA 19087 Carlsbad, CA 92008 Attn.: John Hines Attn.: Copy to: Copy to: Director of Contracts AssetWorks 998 Old Eagle School Rd. - Suite 1215 Wayne, PA 19087 Attn: 7. In the event of any dispute arising in the performance of this Agreement or any Attachment, AssetWorks and the CUSTOMER will seek to resolve such dispute through good faith, amicable discussions and negotiations. Any specific agreed upon problem escalation procedure will be stated in the related Attachment. In the event of a conflict between the terms of an Attachment and this Agreement, the Attachment shall control unless otherwise provided in the Attachment.. 8. Neither party will be liable for any failure to perform or any delay in performing any of its obligations hereunder when such failure or delay is due to circumstances beyond its reasonable control and without its fault (Force Majeure), including without limitation, any natural catastrophe, fire, war, riot, strike, or any general shortage or unavailability of materials, components or transportation facilities, or any governmental action or inaction. Upon the occurrence of such event of Force Majeure, the affected party will immediately give notice to the other party with relevant details, and will keep the other party informed of related developments. 9. This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous oral, and all prior written, negotiations, commitments and understandings of the parties relating to the subject matter hereof. This Agreement may not be modified except by a writing executed by both parties. IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have entered into this Agreement as of the Effective Date. ASSETWORKS Inc. By: GUSTO By: SCHEDULE 1 - FEES Software License Fees SOFTWARE- FASUITE FleetFocusFA, licensed by vehicle equipment units GSA Discount GSA Pricing Components/Other Assets 350 -21% 350 1050 50 (10.50) 39.50 $ 13,825 Unlimited Users No Charge Modules: Shop Scheduling Module Equipment Planning Module Motor Pool Module InfoCenter Web Applications: Replacement (and Performance) Modeling Module Shop Activity Portal (technician, parts and supervisor portals) Ad Hoc Query Module Customer Access Portal (service request) Notifications Portal Reporting Portal KPI/Dashboard Portal Motor Pool Web Reserve Equipment Planning Customer Access Enterprise Portal (0-client GUI) MobileFocus software for Pocket PC 1 GSA Discount -21% GSA Pricing 1 10% Incl. 10% 5% 5% 5% 5% 5% Incl. Incl. $ 64 $ 960 $ (201.60) $ 758.40 $ $ $ $ $ $ $ $ $ $ $ $ Included Included 1,383 - 1,383 2,500 691 691 691 691 691 - - Subtotal $ 758 Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users Unlimited Users 22,546 Per PDA Crystal XI OEM embedded edition 1/2 CPU 1 $ 2,500 GSA Discount -1% $ (25.00) GSA Pricing 1 $ 2,475.00 Discount, valid through June 30, 2009 Server and one report writer $ 2,475 Subtotal $ $ (2797) Net Subtotal $ 25,780 12% 22,983 B.Hardware Shop Floor QTY Price Total PDA Hardware: SYMBOL (Motorola) Symbol MC5590 with Qwerty Keypad, 1D scanner 128/256 1x 1 $ Symbol MC5590 Cradle 1 $ Power supply 1 $ Cord 1 $ USB cable 1 $ Laser Scanner Wedges PSC Quickscan 6000 used with FA QS6000+ WITH UNIVERSAL WEDGE/USB INTERFACES 1 $ 495 $ 1 ,368 130 45 10 17 1 ,368 130 45 10 17 495 Zebra Thermal Bar Code Printers FA Zebra S4M USB/PrintServerll Printer Ribbon Labels 4x2 4 rolls per case 1 $ 1,595 $ 5 $ 19 $ 5 $ 78 $ Total w/o tax $ 1,595 95 390 4,145 SOFTWARE MAINTENANCE AGREEMENT FOR AND IN CONSIDERATION of the mutual benefits accruing and expected to accrue hereunder, this Software Maintenance Agreement ("Agreement"), is made as of the Z3^day oL?epteirnbur2c ("Effective Date") by and between AssetWorks, with offices at 998 Old Eagle School Road, Suite 1215, Wayne, PA 19087 ("AssetWorks"), and The City of Carlsbad, with offices at 1635 Faraday Ave, Carlsbad, CA 92008 ("CUSTOMER"). Intending to be legally bound, the parties hereby mutually agree to the following terms and conditions: A. BACKGROUND 1. AssetWorks and CUSTOMER are parties to a Software License Agreement, Number CLD 0709 ("License Agreement") and dated M 1^2009, pursuant to which CUSTOMER has licensed certain software products ("Software" or "Product") from AssetWorks. 2. The Software paid-up license fee includes a warranty without charge as set forth in the Software License Agreement. In addition, support and maintenance ("Maintenance") for the Software is available as an option. Maintenance includes bug fixes and telephone support and may include, if they are made available by AssetWorks, Software updates and enhancements. 3. The purpose of this Agreement is to set forth the terms and conditions upon which CUSTOMER has agreed, at its option, to subscribe to Maintenance from AssetWorks. B. TERMS AND CONDITIONS 1. Term Maintenance shall commence immediately upon the Effective Date, and shall have a term of twelve (12) months. The term shall automatically renew each year thereafter for an additional twelve (12) month period unless terminated as set forth below. Notwithstanding the preceding sentence, this Agreement shall not exceed five years in duration from the Effective Date. 2. Correction of Deviations In the event that the CUSTOMER encounters an error and/or malfunction ("Deviation") in the Software, it shall communicate the circumstances and any supporting information to AssetWorks. Upon receipt, AssetWorks will respond as follows: a. In the event that, in the mutual and reasonable opinion of AssetWorks and the CUSTOMER, there exists a Deviation that does not constitute a serious impediment to the normal intended use of the Software, AssetWorks will correct the Deviation and distribute the correction to the CUSTOMER in accordance with AssetWorks' normal Software revision schedule. b. In the event that, in the mutual and reasonable opinion of AssetWorks and the CUSTOMER, there exists a Deviation that does constitute a serious impediment to the normal intended use of the Software, AssetWorks will take such steps as are reasonably required to correct the Deviation with all due dispatch. 3. Software Revisions and New Versions a. The Software may be revised by AssetWorks as a result of the correction of Deviations and/or the release of upgrades or improvements or modifications designed to improve the performance of the Software and/or to increase the capabilities of the Software (hereafter "Revisions"). Revisions shall be of two kinds: i. Revisions that the CUSTOMER is obliged to implement ("Mandatory Revisions"); ii. Revisions that may be implemented by the CUSTOMER at its option ("Optional Revisions"). iii. No charge shall be made to the CUSTOMER for either Mandatory Revisions or Optional Revisions. b. New versions ("New Versions") of the Software may be issued by AssetWorks from time to time. Compared to a Revision, a New Version substantially improves the performance of the Software and/or substantially increases its functionality and capability. AssetWorks, in its sole discretion, shall decide which upgrades and improvements will be issued as Revisions without charge and which shall be issued as New Versions for which there may be a charge. c. Assetworks shall make available any New Versions at no additional cost if the currently implemented Version used by CUSTOMER is no longer supported by Assetworks. 4. Telephone Hotline Assistance AssetWorks, at its expense, shall make available technically qualified personnel to respond to all reasonable telephone requests, Monday through Friday, 5 AM to 5:30 PM Pacific Time, (pager support thereafter), excluding California State holidays, during normal business hours, that may be made by the CUSTOMER relating to the application and operation of the Software. At other times such personnel are available by beeper for emergencies. 5. Technical Literature AssetWorks shall make available to the CUSTOMER all technical literature that is considered by AssetWorks to be relevant to the Software and its use within the scope of CUSTOMER'S operations. 6. Transmission All Revisions and New Versions will be transmitted to the CUSTOMER on magnetic tape, magnetic disk or other suitable media, at the option of AssetWorks. The CUSTOMER shall be solely responsible for mounting the media and executing the appropriate instructions in order to transfer the Revisions or New Versions onto to its system. 7. Remote Diagnostic Access The CUSTOMER shall provide appropriate modem facilities by which AssetWorks may, with the permission of the CUSTOMER, remotely access the Software for the purpose of remote diagnostics and support. 8. Proper Use a. The CUSTOMER agrees that all reasonable effort shall be taken to ensure that neither the Software nor data files are misused. b. In the event that the CUSTOMER or its agents misuses the Software or data files, including, but not limited to, inserting, updating, deleting or otherwise modifying data through a means other than the Software, although AssetWorks is not obligated to correct such misuse, AssetWorks shall be entitled to attempt to correct the situation, if possible, at CUSTOMER'S expense. c. In the event that diagnostic assistance is provided by AssetWorks, which, in the reasonable opinion of AssetWorks and the CUSTOMER, relates to problems not caused by a Deviation in the Software, such assistance shall be at the CUSTOMER'S expense. 9. Software Maintenance Fee - Paid Up License In consideration of the Maintenance services to be provided by AssetWorks for each twelve month period hereunder, CUSTOMER shall pay to AssetWorks per schedule listed in Exhibit A and shall not increase more than 5% per year. 10. Additional Software Maintenance Fee - Paid Up License In the event the CUSTOMER acquires Software in addition to that indicated in Schedule 1 of the Software License Agreement (the "Additional Software"), the Maintenance shall automatically be extended to cover the Additional Software, and the CUSTOMER shall pay an additional annual Maintenance fee in an amount equal to twenty percent (20%) of the then current license fee for the Additional Software starting with the next renewal date unless otherwise agreed by the parties in writing. 11. Other Fees and Expenses If onsite maintenance is required, CUSTOMER will pay reasonable pre-approved travel and living expenses of AssetWorks' employees or agents, which shall be billed and paid as the expenses are incurred. 12. Payment Terms a. Annual payments for Maintenance will be due in advance of the commencement of the initial one-year term of the Maintenance and each anniversary thereafter, subject to section B. 1. above. b. AssetWorks reserves the right to change the annual Maintenance fee by providing CUSTOMER written notice of the increase at least sixty (60) days prior to any scheduled renewal date. c. AssetWorks reserves the right to apply a late payment charge of 1.5% per month to amounts outstanding more than thirty (30) days after the date of the invoice. 13. Default and Termination a. The CUSTOMER shall have the right to terminate Maintenance upon delivery of written notice at least sixty (60) days prior to any scheduled renewal date. b. In the event of any breach of the terms and conditions of this Agreement by the CUSTOMER, AssetWorks will, by written notice to the CUSTOMER, give the CUSTOMER a period of thirty (30) days within which to institute remedies to correct such breach. In the event that such breach has not been corrected to AssetWorks' satisfaction within said thirty (30) day period, AssetWorks may then cancel Maintenance, effective immediately, by notice in writing to the CUSTOMER. c. In the event that Maintenance is terminated by AssetWorks, AssetWorks shall have no continuing obligations to the CUSTOMER of any nature whatsoever with respect to Maintenance. Furthermore, termination by AssetWorks pursuant to the provisions hereof shall be without prejudice to any right or recourse available to AssetWorks, and without prejudice to AssetWorks' right to collect any amounts, which remain due to it hereunder. 14. Limitation of Liability a. In the event of any claim brought by one party against another hereunder, a party will be liable only for actual, direct losses or damages incurred (including cost of cover), limited to the amount of fees paid to AssetWorks for maintenance services; provided, the claiming party shall be obliged to take reasonable steps to mitigate its losses or damages. b. Irrespective of the basis or theory of the claim, neither party will be liable for any special, punitive, exemplary, indirect, incidental or consequential damages of any kind, including, without limitation, lost profits or loss of data, even if it has been advised of the possibility of such damages. 15. General Terms a. Neither AssetWorks nor CUSTOMER will assign or transfer its interest in this Agreement or any Attachment without the prior written consent of the other party. b. All provisions of this Agreement, which by their nature should survive termination of this Agreement, will so survive. c.. No delay or failure by either party to exercise any right hereunder, or to enforce any provision of this Agreement will be considered a waiver thereof. No single waiver will constitute a continuing or subsequent waiver. To be valid, a waiver must be in writing, but need not be supported by consideration. d.. If any provision of this Agreement is held to be illegal, invalid or unenforceable, in whole or in part, such provision will be modified to the minimum extent necessary to make it legal, valid and enforceable, and the remaining provisions of this Agreement will not be affected. e. This Agreement, including its interpretation and enforcement, will be governed by the substantive laws of the State of California excluding its conflict of laws rules. EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA LOCATED IN THE CITY OF SAN DIEGO, OR IF SUCH COURT DOES NOT HAVE JURISDICTION, THE STATE COURTS OF THE STATE OF CALIFORNIA LOCATED IN THE CITY OF SAN DIEGO, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN THE COURTS REFERRED TO ABOVE, AND HEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. f. Any communication or notice hereunder must be in writing, and will be deemed given and effective: (i) when delivered personally with proof of receipt; (ii) when sent by e-mail; (iii) when delivered by overnight express; or (iv) three (3) days after the postmark date when mailed by certified or registered mail, postage prepaid, return receipt requested and addressed to a party at its address for notices. Each party's address for notices is stated below. Such address may be changed by a notice delivered to the other party in accordance with the provisions of this Section. AssetWorks 998 Old Eagle School Rd. - Suite 1215 Wayne, PA 19087 Attn.: John Hines Copy to: Director of Contracts AssetWorks 998 Old Eagle School Rd. - Suite 1215 Wayne, PA 19087 Attn: Sandra McFarland CUSTOMER: 1635 Faraday Av Carlsbad, CA 92008 Attn.: Copy to: Attn: g. In the event of any dispute arising in the performance of this Agreement or any Attachment, AssetWorks and the CUSTOMER will seek to resolve such dispute through good faith, amicable discussions and negotiations. Any specific agreed upon problem escalation procedure will be stated in the related Attachment. In the event of a conflict between the terms of an Attachment and this Agreement, the Attachment shall control unless otherwise provided in the Attachment. h. Neither party will be liable for any failure to perform or any delay in performing any of its obligations hereunder when such failure or delay is due to circumstances beyond its reasonable control and without its fault (Force Majeure), including, without limitation, any natural catastrophe, fire, war, riot, strike, or any general shortage or unavailability of materials, components or transportation facilities, or any governmental action or inaction. Upon the occurrence of such event of Force Majeure, the affected party will immediately give notice to the other party with relevant details, and will keep the other party informed of related developments. i. This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous oral, and all prior written, negotiations, commitments and understandings of the parties relating to the subject matter hereof. This Agreement may not be modified except by a writing executed by both parties. IN WITNESS WHEREOF, the parties hereto, intending to be liable bound, have entered into this Agreement, effective as of the Effective Date. Exhibit A Maintenance Fees: Year 1 Year 2 Year 3 Maintenance* $ 5,155.93 $ 5,413.73 $ 5,684.41 *annual tune-up services available for an additional fee. Application Service Provider Agreement Between AssetWorks, Inc. And The City of Carlsbad, California AssetWORKS AssetWorks Hosting Services Agreement Page 1 Application Service Provider Agreement This Application Service Provider Agreement ("Agreement") is effective as of this 23rd day of-Sept. 2009 ("Effective Date"), by and between AssetWorks, Inc. ("Provider"), with offices located at 998 Old Eagle School Road, Wayne, Pennsylvania, 19087 and The City of Carlsbad ("Customer"), with offices located at 1635 Faraday Ave, Carlsbad, CA 92008, on the following terms and conditions: AGREEMENT OVERVIEW Provider operates an Application Service Provider ("ASP") Data Center (the "Data Center"), located at 998 Old Eagle School Road., Wayne, PA 19087, and provides associated services to support customers that wish to outsource the operation and maintenance of computer applications. This Agreement describes the services to be provided by Provider, the respective responsibilities of the parties, the service level objectives ("SLO's"), and the problem management process. This Agreement incorporates the following Attachments, which are hereby incorporated by reference and shall be considered an integral part of this Agreement: Attachment 1 Scope of Services Attachment 2 Service Level Agreement Attachment 3 Fee Schedule SERVICES Provider will perform the services ("Services") as described in the Scope of Services, set forth in Attachment 1. The general scope of services addressed by this Agreement includes the operation, maintenance and support of the Customer's: Application software, Database for the Applications hosted under this agreement, Database security, and Data Center servers operation. The Services specifically exclude operation and maintenance of the following: Customer hardware, including Customer's servers, printers, network hardware (including routers and switches) and other Customer site computing equipment; Customer application software other than noted in the Scope of Services; and Customer-Local Area Networks ("LAN"). AssetWorks Hosting Services Agreement Page 2 The Services shall be provided subject to the Terms and Conditions, which follow. TERM The Term of the Agreement shall commence as of the Effective Date and shall continue for three (3) years ("Initial Term") unless terminated earlier as set forth below. At the end of the Initial Term, the Agreement shall automatically renew for successive one- year terms unless or until either party provides the other party with written notice of non- renewal at least ninety (90) days prior to the end of the then current term. FEES AND PAYMENT Customer shall pay Provider the applicable fees as set forth in the Fee Schedule, Attachment 3. Provider shall invoice Customer monthly in advance, and all invoiced fees shall be due and payable within 30 days of the date of an invoice. All payments shall be made in United States Dollars without deduction for any taxes or withholding or other offset, and shall be sent to Provider's address set forth on the signature page of the Agreement. Any amounts not paid when due will be subject to interest accrued at twelve percent (12%) per annum, or the maximum rate permitted by law if lower, compounded quarterly, which interest will be immediately due and payable from the due date for payment until the date of actual receipt of the amount in cleared funds by Provider. Interest payments that are accrued during billing disputes should be credited back to the Customer if said dispute is found to be through no fault of the Customer. A Customer will be considered delinquent if payment in full is not received thirty (30) days from the date of the invoice. Provider reserves the right to suspend or terminate this Agreement and Customer access to the Service if the Customer account becomes delinquent and is not cured within ten (10) days. Customer will continue to be charged and hereby agrees to pay for Service during any period of suspension. Customer's failure to pay any invoice after this ten (10) day period shall constitute a material default hereunder and shall entitle Provider to exercise any and all rights and remedies provided herein or at law including a suspension of Services under the Agreement. If Customer or AssetWorks initiate termination under any provision of the Agreement, Customer will be obligated to pay the balance due on their account computed in accordance with the Fee Schedule in Attachment 3. In the event of a dispute between the parties that does not result in a termination of the Agreement, Customer agrees to make all Monthly Service Fee payments that are not subject to the dispute when due under the Agreement pending the resolution of the dispute. Upon termination for whatever reason and regardless of the nature of the default (if any), Customer agrees to pay Provider in full for undisputed Services provided to Customer under this Agreement within 30 days of the invoice date. If Provider invoices Customer for disputed fees, Customer shall be entitled to deduct the disputed fee from the invoice. CUSTOMER RESPONSIBILITIES 51/ AssetWorks Hosting Services Agreement Page 3 Provider responsibilities are detailed in the Service Level Agreement, Attachment 2. The Customer is responsible for: Assigning a primary and alternate customer representative to coordinate all communications and activities related to Provider services. Providing user identification data and determining the appropriate security profile for each user. Customer will control security at the Application level. All on-site printing. No print job will print at the Data Center. All physical printing requirements will be the responsibility of the Customer. The purchase and installation of printers at Customer's sites for the Application being utilized as defined in the Scope of Services. Installation, operation and maintenance of Customer's LAN, existing data communications configuration, hardware, or software at the Customer's site except as otherwise stipulated in the Scope of Services. This is defined as all lines, switches and routers from the Customer site up to the Provider's site. User ad hoc report generation, creation and printing (currently via the client software GUI, web version available as an option late 2009). Testing updates and fixes applied by Provider to Applications used by Customer. With the exception of emergency fixes, Customer will test updates and fixes in the test environment and confirm testing results with provider prior to their introduction to the Production environment within a mutually agreed upon time frame. Testing upgrades. Upgrades will be moved to production by the Provider at the end of the Customer testing period unless specific problems are documented in writing to Provider. Analysis of suspected problems to determine their specific nature and possible causes before calling the Provider for assistance. Customer is responsible to report the problems and the analysis to the provider in a complete and timely manner. Note: Customer will not be able to build new Crystal Reports (InfoCenter Reporting) or modify existing reports (due to firewall security issues) OWNERSHIP OF DATA Customer shall not obtain any ownership rights, title or interest in the software, hardware or systems developed or employed by Provider in providing Services under the Agreement. Provider shall not obtain any ownership rights, title or interest to Customer's data files. Upon expiration or termination of the Agreement for any reason, Provider agrees to provide Customer with a copy of Customer's data files, as they exist at the date of expiration or termination pursuant to the requirements outlined in the Obligations Upon Termination of Contract section of the Attachment 1. 0AssetWorks Hosting Services Agreement Page 4 WARRANTY DISCLAIMER/LIMITATION OF LIABILITY EXCEPT AS EXPRESSLY SET FORTH HEREIN, PROVIDER SPECIFICALLY DISCLAIMS ANY OTHER EXPRESS OR IMPLIED STANDARDS, GUARANTEES, OR WARRANTIES INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON- INFRINGEMENT AND ANY WARRANTIES THAT MAY BE ALLEGED TO ARISE AS A RESULT OF CUSTOM OR USAGE, ANY WARRANTY OF ERROR-FREE PERFORMANCE, OR ANY WARRANTY OF THIRD PARTY PRODUCTS, OR FUNCTIONALITY OF THE CUSTOMER'S HARDWARE, SOFTWARE, FIRMWARE, OR COMPUTER SYSTEMS. PROVIDER SHALL NOT BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, (INCLUDING BUT NOT LIMITED TO LOST DATA OR LOST REVENUES OR PROFITS, LOSS OF USE OR EQUIPMENT DOWN TIME, AND LOSS OF OR CORRUPTION TO DATA) ARISING OUT OF OR RELATING TO THIS AGREEMENT, REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH DAMAGES ARE SOUGHT, AND EVEN IF PROVIDER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. CUSTOMER HEREBY AGREES THAT PROVIDER'S TOTAL LIABILITY FOR ANY AND ALL LIABILITIES CLAIMS, OR DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, HOWSOEVER CAUSED AND REGARDLESS OF THE LEGAL THEORY ASSERTED, INCLUDING BREACH OF CONTRACT OR WARRANTY, TORT, STRICT LIABILITY, STATUORY LIABILITY OR OTHERWISE, SHALL NOT, IN THE AGGREGATE, EXCEED FEES PAID TO PROVIDER DURING THE PREVIOUS 12-MONTH PERIOD. THE PARTIES ACKNOWLEDGE AND AGREE TO THE FOREGOING LIABILITY RISK ALLOCATION. ANY CLAIM BY CUSTOMER AGAINST PROVIDER RELATING TO THIS AGREEMENT MUST BE MADE IN WRITING AND PRESENTED TO PROVIDER WITHIN SIX (6) MONTHS AFTER THE DATE ON WHICH THIS AGREEMENT EXPIRES OR IS OTHERWISE TERMINATED. TERMINATION FOR DEFAULT Either party may terminate this Agreement if (i) the other party fails to perform a material obligation of the Agreement and such failure remains uncured for a period of 30 days after receipt of notice from the non-breaching party specifying such failure; or (ii) a party ceases to conduct business, becomes or is declared insolvent or bankrupt, is the subject of any proceeding relating to its liquidation or insolvency which is not dismissed within 90 days or makes an assignment for the benefit of creditors. In addition, Contractor may terminate this Agreement effective immediately upon written notice to Customer if Customer fails to make any payment in full as and when due hereunder. 8.2 Upon termination for whatever reason and regardless of the nature of the default (if any), Customer agrees to pay Contractor in full for all goods and/or services provided to, and accepted by, Customer under this Agreement and/or any task order hereto as of the effective date of the Agreement within 30 days of the invoice date. NOTICES All notices under this Agreement will be in writing and will be delivered by personal service, facsimile or certified mail, postage prepaid, or overnight courier to such person AssetWorks Hosting Services Agreement Page 5 and address as may be designated from time to time by the relevant party, which initially shall be the address set forth below: AssetWorks CUSTOMER: 998 Old Eagle School Rd. - Suite 1215 1635 Faraday Av Wayne, PA 19087 Carlsbad, CA 92008 Attn.: John Mines Attn.: Copy to: Copy to: Director of Contracts AssetWorks 998 Old Eagle School Rd. - Suite 1215 Wayne, PA 19087 Attn: Attn: Sandra McFarland NON-WAIVER OF RIGHTS The failure of either party to insist upon performance of any provision of this Agreement, or to exercise any right, remedy or option provided herein, shall not be construed as a waiver of the right to assert any of the same at any time thereafter. RIGHTS AND REMEDIES NOT EXCLUSIVE Unless otherwise expressly provided herein, no right or remedy of a party expressed herein shall be deemed exclusive, but shall be cumulative with, and not in substitution for, any other right or remedy of that party. SEVERABILITY If any provision of the Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any manner. ASSIGNMENT Neither the Agreement nor any duties or obligations hereunder shall be assigned or transferred by Customer without the prior written approval of Provider, which approval may be withheld in the reasonable judgment of the Provider. Customer agrees that Provider may assign its obligations to a third party subject to Customer's written approval of such change, but Provider shall remain responsible for performance under the Agreement. All fees will remain in tact as outlined in Attachment 3. GOVERNING LAW; VENUE The Agreement shall be governed and construed in accordance with the laws of the State of California without regard to choice of law principles. EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA LOCATED IN THE CITY OF SAN DIEGO, OR IF SUCH COURT DOES NOT HAVE JURISDICTION, THE STATE COURTS OF THE STATE OF CALIFORNIA LOCATED IN THE CITY OF SAN DIEGO, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING IN CONNECTION WITH THIS AGREEMENT AND THE AssetWorks Hosting Services Agreement Page 6 TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN THE COURTS REFERRED TO ABOVE, AND HEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. INTERPRETATION The captions and headings used in this Agreement are solely for the convenience of the parties, and shall not be used in the interpretation of the text of this Agreement. Each party has read and agreed to the specific language of this Agreement; therefore no conflict, ambiguity, or doubtful interpretation shall be construed against the drafter. DISPUTES The parties will seek a fair and prompt negotiated resolution within ten (10) days of the initial notice of the dispute ("Dispute"). If the dispute has not been resolved after such time, the parties will escalate the issue to more senior levels. If the parties are unable to resolve any dispute at the senior management level, then any controversy, claim or Dispute arising out of or relating to this Agreement shall be resolved by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. Before commencing any litigation or such arbitration, the parties agree to enter into negotiations to resolve the Dispute. If the parties are unable to resolve the Dispute by good faith negotiation, either party may refer the matter to arbitration before initiating any litigation. The arbitrator(s) shall be bound to follow the provisions of this Agreement in resolving the dispute, and may not award any damages, which are excluded by this Agreement. Any request for arbitration of a claim by either party against the other relating to this Agreement must be filed no later than six (6) months after the date on which Provider concludes performance under this Agreement. This dispute resolution process shall not relieve any party from complying with any claims presentation requirements as a condition precedent to initiating litigation. MULTIPLE COPIES OF COUNTERPARTS OF AGREEMENT This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement shall not be effective until the execution and delivery between each of the parties of at least one set of the counterparts. FORCE MAJEURE Neither party shall be liable for any failure of or delay in performance of its obligations (except for payment obligations) under this Agreement to the extent such failure or delay is due to acts of God, acts of a public enemy, fires, floods, power outages, wars, civil disturbances, sabotage, terrorism, accidents, insurrections, blockades, embargoes, storms, explosions, labor disputes (whether or not the employees' demands are reasonable and/or within the party's power to satisfy), failure of common carriers, Internet Service Provides, or other communication devices, acts of cyber criminals, terrorists or other criminals, acts of any governmental body (whether civil or military, AssetWorks Hosting Services Agreement Page 7 foreign or domestic), failure or delay of third parties or governmental bodies from whom a party is obtaining or must obtain approvals, authorizations, licenses, franchises or permits, inability to obtain labor, materials, power, equipment, or transportation, or other circumstances beyond its reasonable control (collectively referred to herein as "Force Majeure Occurrences"). Any such delays shall not be a breach of or failure to perform this Agreement or any part thereof and the date on which the obligations hereunder are due to be fulfilled shall be extended for a period equal to the time lost as a result of such delays. Neither party shall be liable to the other for any liability claims, damages or other loss caused by or resulting from a Force Majeure Occurrence. RELATIONSHIP OF PARTIES Contractor is an independent contractor in all respects with regard to this Agreement. Nothing contained in this Agreement shall be deemed or construed to create a partnership, joint venture, agency, or other relationship other than that of contractor and customer. THIRD PARTY BENEFICIARIES This Agreement does not create, and shall not be construed as creating, any rights or interests enforceable by any person not a party to this Agreement. WAIVER OR MODIFICATION No provision of the Agreement may be waived or modified unless in writing specifically referencing this Agreement and signed by representatives of both parties against whom enforcement of the purported modification or waiver is sought. Waiver of default of any provision of the Agreement shall not operate or be construed as a waiver of any subsequent default of such provision, nor shall a waiver of any one provision of the Agreement be deemed to be a waiver of any other provision. ENTIRE AGREEMENT; CONFLICTING PROVISIONS The Agreement and any schedules and exhibits thereto contain the entire agreement and understanding of the parties with respect to the subject matter hereof, and supersedes and replaces any and all prior or contemporaneous proposals, discussions, agreements, Customer issued purchase order or document of like intent or purchase, understandings, commitments, representations of any kind, whether oral or written, relating to the subject matter hereof or the Services to be provided hereunder. In the event that any provision in any attachment conflicts with any provision of this Agreement, then this Agreement shall be deemed to control, and such conflicting provision to the extent it conflicts shall be deemed removed and replaced with the governing provision herein. AUTHORIZATION Each of the parties represents and warrants that the Agreement is a valid and binding obligation enforceable against it and that the representative executing the Agreement is duly authorized and empowered to sign the Agreement SURVIVAL The provisions of sections 4, 6, 7, 14, 16 and 22 shall survive the termination or expiration of this Agreement. AssetWorks Hosting Services Agreement Page 8 -2 I COUNSEL By execution of this Agreement, each of the Parties acknowledges and agrees that it has had an opportunity to consult with legal counsel and that it knowingly and voluntarily waives any right to a trial by jury of any dispute pertaining to or relating in any way to the transactions contemplated by the Agreement, the provisions of any federal, state or local law, regulation or ordinance notwithstanding. Signatures IN WITNESS WHEREOF, the parties have executed this Agreement through their duly authorized representative(s). "Provider" AssetWorks, INC. Namely JO Title: Sign: Date: "Customer" Date: Address: 998 Old Eagle School Road Suite 1215 Wayne, PA 19087 Telephone (610) 687-9202 Fax (610) 971-9447 Address: Telephone: FAX: AssetWorks Hosting Services Agreement Page 9 Attachment 1 - Scope of Services All the services, functions, processes and activities described below will be collectively described as the "Services" for purposes of this Agreement. All Services will be provided by the Provider to and for the Customer's benefit in a manner, which will adequately meet or exceed the SLA, Attachment 2. Provider's failure to deliver the services and meet SLO's defined in the SLA will constitute Default by the Provider. Neither the SLA nor these Services can be changed in any way without written Amendment. 1. Application Application or Applications refers to the FleetFocusFA (a.k.a. FASuite) software and modules. Applications for purposes of this Agreement also include the operating system, utilities, scheduled batch cycles, database software and all necessary licenses required to successfully and adequately operate the software in a manner to meet the SLA, Attachment 2. Hardware The Application will be hosted on AssetWorks supplied servers. The Server will always provide adequate facility to meet the SLOs. If required by Customer, Customer shall provide the telecommunications equipment (including the routers to be installed at the Data Center and Disaster Recovery Center site), communication line and services for connection from Customer's site to the Data Center and Disaster Recovery Center. Database Instances A single Production Database instance will be maintained for Customer. This Production Database will provide the daily, real-time transaction data to the Application Users. In addition to the Production Database, Provider shall create an additional, non- production Test Database. Upon request by Customer, Provider will populate the Test Database with Customer's Production data up to 4 times in any 12 month period with no additional cost. More frequent data updates will be performed with charges to the Customer using the Service Fee rates cited in Section 4 of Attachment 3. For an additional charge, Provider will furnish an Ad-hoc Reporting Database for use with the Customer developed ad-hoc reports. This Database will be updated from the production database every night and will allow the Customer direct access to its data for purposes of ad-hoc reporting. Further, for an additional charge Provider will certify a Customer built Ad-hoc Report for scheduling execution from within the Application directly against the production database, certifying that the Report performs within appropriate guidelines and does not cause unacceptable response AssetWorks Hosting Services Agreement Page 10 ^ ' time issues. Once certified, Provider will install the Report into Customer's ASP production environment to make it available for execution submission from within the Application. Hours of System Operations The Application will be accessible and available to the Customer and capable of any and all normal operating functions 24 hours a day, seven days a week except for previously approved and Scheduled Maintenance. The Provider will not be held responsible for inaccessibility arising from communications problems occurring anywhere beyond the Provider's side of the router resident at the Provider's Data Center and Disaster Recovery Center, nor will these hours of unavailability be counted as unavailable for purposes of Contractual Non-Compliance. Help Desk Operations Provider will maintain a Help Desk to receive Customer calls to report, log and resolve any problems with the Services identified by the Customer. Business hours and response times are listed in Attachment 2 - Service Level Agreement, Service Level Category 4 - Customer Service. Customer will be allowed unlimited calls to the Help Desk as long as Customer remains in compliance with all contractual commitments between Customer and Provider. While the Application will be available to the Customer on Holidays, the Help Desk will operate on an "after Business Hours" schedule on Holidays. Provider currently recognizes the following Holidays: New Years Day Memorial Day Columbus Day Martin Luther King Day Fourth of July Thanksgiving Day Presidents Day Labor Day Christmas Day Additional Holidays may be added upon prior written notice to Customer. Online Data Retention All data in the Customer's Production database as provided at time of conversion will be available online. Older data will be archived in a process to be defined in the future, but mutually agreed upon by the Provider and the Customer. This data can be reloaded upon request by Customer for Service Fees identified in section 4 of Attachment 3. Maintenance The Provider will complete Scheduled Maintenance of the Application on a weekly basis. This Scheduled Maintenance will consist of downtime of the Application mutually agreed upon by the Customer and the Provider. Scheduled Maintenance will include AssetWorks Hosting Services Agreement Page 11 database reorganization and any other weekly requirements that allow the Application to successfully and adequately operate in a manner to meet the SLA, Attachment 2. If the Provider is required to perform additional maintenance outside of the Scheduled Maintenance window, it will notify the Customer in writing of its request. The Customer and the Provider will mutually agree on the downtime, which will then be considered Approved Maintenance. Disaster Recovery Back-up frequency and data retention services will be provided as outlined in the SLA, Attachment 2. The Provider will identify an authorized agent to provide off-site storage services. Reporting The Provider will produce quarterly communications and reports as requested by the Customer. Examples of the possible requests: Service Level Performance Metrics Problem Trend Analysis Status of Current and Future Activities Application Availability Percentages Monthly Unit Counts Database Usage and Statistics Server Statistics Obligations Upon Termination of Contract Customer's Obligations Upon Termination or Expiration Upon termination due to a Default by the Customer or expiration of this Agreement, all rights granted hereunder to the Customer shall forthwith terminate, and: • Customer shall immediately and permanently cease to use the ASP Services in any manner whatsoever, • Customer shall pay to the Provider all damages, costs and expenses, including reasonable attorneys' fees, incurred by the Provider as a result of the termination or expiration of this Agreement due to Default by the Customer, including costs in obtaining injunctive or other relief for the enforcement of any provision of this Agreement, and • Customer shall make all payments due. Provider's Obligations Upon Termination or Expiration Upon termination due to a Default by the Provider or expiration of this Agreement, all rights granted hereunder to the Provider shall forthwith terminate, and: • Provider shall immediately and permanently cease to use, in any manner whatsoever, all of the Customer's Proprietary Marks and distinctive forms, slogans, signs, symbols, and devices associated with the Customer including, AssetWorks Hosting Services Agreement Page 12 \° without limitation, all signs, advertising materials, displays, stationary, forms and any other articles which display such proprietary marks, Provider will copy the Customer's Production Database, and any and all other databases, scripts, utilities or files maintained by Provider on behalf of Customer, and forward the copies to the Customer in machine-readable format acceptable to the Customer, Provider will use all reasonable efforts to assist Customer in affecting a smooth transition of the ASP Services to Customer or any other vendor chosen by Customer, and Provider, when directed by Customer to do so, will delete all of Customer's data in Provider's possession from any data storage media under control of the Provider. 6?AssetWorks Hosting Services Agreement Page 13 Attachment 2 - Service Level Agreement This Service Level Agreement ("SLA") is intended to provide an understanding of the level of service to be delivered by the Provider for the Services specified in Attachment 1. The Service Level Objectives ("SLO") will be reviewed annually by the Provider and Customer to determine if new business conditions or new technology support a modification of the Agreement. The Provider and Customer will mutually agree upon any recommended modifications. Failure to reach mutual agreement will prompt Dispute Resolution as outlined in Section 16 of the Agreement. Service Level Non-Compliance Non-Compliance is the inability to achieve any SLO. There are two kinds of Non- Compliance: Operational Non-Compliance and Contractual Non-Compliance. Operational Non-Compliance is the instance or onset of the inability of the Provider to meet an SLO (e.g., unavailability of the Application). Contractual Non-Compliance is the failure of the Provider to adhere to the services described in this Agreement. The response outlined below is required for both Operational Non-Compliance and Contractual Non-Compliance. Instances of Operational Non-Compliance can, with multiple occurrences, extended time, or severity, become issues of Contractual Non- Compliance. Should the Customer identify an instance of Operational Non-Compliance, the Customer will notify the Help Desk. Should the Customer identify an instance of Contractual Non-Compliance, the Customer will deliver written notification to the Provider. Upon notification by the Customer of Contractual Non-Compliance, the Provider will research the problem and respond to the Customer by the next business day. This response will outline: What actions will be taken to resolve this specific instance of the problem; How long it will take to implement these actions; and What process will be undertaken to ensure that the SLO will be successfully met in the future. Possible actions to ensure that Provider will meet the SLO in the future include: • The establishment of additional policies or business process enhancements to increase the likelihood of meeting the existing SLOs; • The employment of additional hardware, software, personnel or additional resources to increase the likelihood of meeting the existing SLOs; and • A review of the existing SLOs to determine if they are no longer appropriate given changes in Customer usage, other conflicting demands, or new technology. Based on mutual agreement between the Customer and Provider, more realistic goals may be established based on information . f- AssetWorks Hosting Services Agreement Page 14 gathered since the goals were last set. best overall interests of the Customer. This will only be done if it is in the Non-Compliance Provider will achieve the SLOs on a quarterly calendar basis. The following chart and text describe several categories of SLOs. Contractual Non-Compliance is defined differently for Category 1 (Application Availability and Performance) than it is for all other SLO's. The Provider will be given seven (7) days to cure a Category 1 Non- Compliance instance and thirty (30) days to cure all other Non-Compliance instances. If the Application is available less than 95% of all "Available Hours" in the calendar quarter, Customer may at its option terminate this Agreement and Provider will waive the Service Termination Fee identified in Section 5 of Attachment 3. Scheduled Maintenance hours will not count as unavailable hours. "Available Hours" means the product of the number of days in the quarter times 1440 minutes, less Scheduled Maintenance. Failure to meet one or more of the SLOs other than Category 1 (Application Availability and Performance) for any given month does not constitute a Default of the Agreement. If Provider fails to meet one or more of the other SLOs for two consecutive calendar quarters, Customer may at its option terminate this Agreement and the Service Termination Fee identified in Section 5 of Attachment 3 will be waived by Provider. Service Level Categories and Objectives No. 1 2 3 Category Application Availability and Performance Security Application Maintenance Subcategory Normal Operating Conditions Data Recovery Response Time Front Door Access to Data Backdoor Access Major Upgrades Minor Upgrades/Bundled Fixes Immediate Fixes Objective Regular hours Provider network Backup Frequency Data Retention Data Recovery On-line Screens Queries Batch Cycles Access Authorization Customer Network Physical Access to Data Center AssetWorks Hosting Services Agreement Page 15 4 Customer Service Help Desk Communication Initial Contact Inquiry Settlement Technical Administration Scheduled On Request Data Center Announcements Feedback Service Level Category 1: Application Availability and Performance Subcategory: Normal Operating Conditions Regular Hours Objective The Application will be available as defined in section 4 of Attachment 1. The Test Application which accesses the Test database instance will be available during Business Hours as defined in Service Level Category 4: Customer Service. Verification Method The Application availability will be monitored by Data Center staff and verified by the Customer using alternate sources available. Provider Network Objective The Data Center will be responsible for the dependability, accessability, and security of the Provider's internal communication network that begins at either the Customer- provided routers at the Provider's sites or mutually agreed upon routers. Verification Method The Provider network availability will be monitored by Data Center staff and verified by the Customer. Subcategory: Disaster Recovery Back-up Frequency Objective All Customer data and all other configuration files, scripts, and any other files necessary for complete and successful operation of the Application will be copied to and backed- up to tape at a pre-defined schedule developed byProvider. For an additional fee, Provider will schedule other 'Critical Points' for back-up, as defined and required by the Customer (e.g., month-end, year-end and before upgrades.) Back-ups of the Customer's Production and Test data will be performed in accordance with Provider's standard back up schedule and tapes sent to off-site storage via an authorized escrow agent within 24 hours of the back-up being taken. The Customer retains the right to have copies of back-up tapes mailed to the Customer's site on schedule determined by Provider. AssetWorks Hosting Services Agreement Page 16 (SI Verification Method The Data Center will verify daily that each back-up's status is listed as complete by the system. Data Retention Objective Data will be retained for a reasonable timeframe, for recoverability. Daily back-ups will be available for recovery for 2 weeks. Without additional charge, Provider will furnish the most recent back-ups and copies of the Application to enable Customer to run in production on its Disaster Recovery Site. Verification Method The data recovery tests listed under Data Recovery will be used to verify Data Retention. The results of Customer requested restorations will also be recorded. Data Recovery Objective In cases where copies of back-up data exist at the Data Center and the systems supporting the Customer's data are intact, the data will be successfully restored within one (1) calendar day. In cases where the requisite back-up data is stored off-site and the systems supporting the Customer's data are intact, the data will be successfully restored within three (3) calendar days. In the event that the Data Center is severely damaged and Customer processing is moved to the Disaster Recovery Center, due to fire or other disasters, the Data Center will provide Application availability to the Customer within three calendar days at the Disaster Recovery Center. The Provider will return Customer processing to the Data Center from the Disaster Recovery Center as soon as possible. Customer data will be restored from off-site back-ups, which will contain data 1 day prior to the disaster. Customer will be responsible for providing the telecommunications and telecommunications hardware to the Disaster Recovery Center. Verification Method The Data Center and the Disaster Recovery Center will conduct periodic data recovery tests at least annually to confirm that the recovery objectives can be met. The results of Customer requested restorations will also be recorded. Subcategory: Response Time Queries Objective The Data Center will ensure that the Production database is able to facilitate the completion of queries through the Application that have been supplied by the Customer in a manner which is comparable to what the Customer experiences through their current production configuration as outlined in the Baselines. This excludes Customer network issues. In the case of additional Customer created queries through the Application, due to their unpredictable levels of complexity, the Provider cannot make a response time commitment. The Provider will be able to provide additional support to assist Customer query optimization on a time and materials basis. AssetWorks Hosting Services Agreement Page 17 Verification Method AssetWorks expects screen and query response times to more than exceed Customer expectations. However. AssetWorks is unable to produce exact performance benchmarks. Anything outside of the routers at the Data Center is not in AssetWorks' control. AssetWorks expects screen response times to be a maximum of two seconds. AssetWorks anticipates the same for data queries with the assumption that the proper user filters are in place. Upon going into production with the Application. Customer and AssetWorks will agree upon a benchmarking method to derive more accurate results to be included into the SLA as a benchmarking addendum. Annual benchmarking evaluations will be conducted in conjunction with both parties. Online Screens Objective Response time for Customer's use of the Applications should be no longer than two seconds. The expectation is for on-line window response times for normal transactions (e.g., screen changes, repair order retrievals, file updates, report generation, etc.) to be equal to or better than that currently experience by Customer using other applications via the internet. This excludes Customer network issues. Verification Method System load and response time will be monitored to determine if queries are negatively impacting system response time for Customer. Monitoring tools and reports will be defined once the Application is set up and loaded for production use and will be mutually agreed upon by Provider and Customer. Batch Cycles Objective The Data Center will ensure that the daily, weekly, monthly, and yearly batch cycles run in a manner, which is comparable to what the Customer experiences through their current Production configuration as outlined in the Baselines. Verification Method This will be measured by the total execution times from start to finish of each batch cycle. Monitoring tools and reports will be defined once the Application is set up and loaded for production use and will be mutually agreed upon by Provider and Customer. Service Level Category 2: Security This Service Level Category covers two subcategories of data security. The first involves preventing users not authorized to use the Application from using the Application to access Customer data ("Front Door"). The second subcategory involves accessing Customer data from outside the Application in any other manner ("Back Door"). AssetWorks Hosting Services Agreement Page 18 Subcategory: "Frontdoor" Access to Customer Data (via the Application) Access Authorization Objective Customer Application and data will only be accessible by authorized users as defined and managed by the Customer. Customer data is secured in separate database instances. Verification Method To be determined by the Customer. Subcategory: "Backdoor"Access to Customer Data (Outside of the Application) Customer Network Objective If Customer elects to make use of a dedicated telecommunication line, Provider will provide guidelines and technical recommendations to assist Customer in connecting to the Application at the Data Center via its internal communication network beginning at the Customer-provided router at the Provider's site. The Data Center is not ultimately responsible for the dependability or security of the Customer's internal network beyond the router. Verification Method The Data Center will verify the delivery of the guidelines and technical recommendations. Physical Access to the Data Center Objective The Data Center has implemented security measures to protect against physical intrusion. Access to the Data Center building and the computer room is limited to Data Center staff only. The Customer retains the right to inspect the physical access to the facility. Verification Method Customer may verify by inspection. AssetWorks Hosting Services Agreement Page 19 Service Level Category 3: Application Maintenance An important element of providing Hosting Services for the Application is ensuring that all appropriate upgrades, updates and fixes are applied in a timely manner. Subcategory: Major Upgrades Objective Application upgrades (as defined by version number changes) will be installed and tested by the Data Center within six months of their release by the Provider. Customer will be provided with each module upgrade and documentation upon a mutually agreed upon time frame within which to test the upgrade prior to its being available to the Customer's users and interfacing with the Production database. Verification Method The Data Center will record the time between the Application release date and the end of the Customer test period. Subcategory: Minor Upgrades/Bundled Fixes Objective Updates, fixes, patches or similar minor changes to the Application will be installed and tested by the Data Center within six weeks of their release. Customer will be provided each module upgrade upon a mutually agreed upon time frame within which to test the said change prior to its being available to the Customer's users and interfacing with the Production database. Customer's custom modifications will be tested by the Data Center and the Customer prior to their being available to the Customer's users and interfacing with the Production database. Verification Method The Data Center will record the time between the Application release date and the end of the Customer test period. Subcategory: Immediate Fixes Objective Once the Data Center is aware of an Application problem, fixes available from the Application vendor will be installed within a timely period, based on the criticality of the problem as defined by the Customer or identified in Category 1 SLOs. Verification Method Percent of fixes that are completed within their target times. AssetWorks Hosting Services Agreement Page 20 Service Level Category 4: Customer Service Three subcategories of customer service are included in this Service Level Category. The first examines the responsiveness of the Help Desk. The second examines the Data Center's reponsiveness to requests for Technical Administration. The final Customer Service subcategory examines a number of aspects of general communication between the Data Center and the Customer. Subcategory: Help Desk The Provider will maintain a Help Desk whose function will be to support and assist the Customer in diagnosing and resolving problems associated with the Application. Initial Contact Objective The Help Desk phone line will be staffed during Business Hours. Business Hours are defined as 8:00 a.m. to 6:00 p.m. EST, Monday through Friday except Holidays. If a message is left during these Business Hours, a return call will be issued within 15 minutes. Outside of Business Hours, in the event of a critical application issue, a Data Center representative will be available by pager to return Help Desk messages within 15 minutes. Additional pager phone numbers will be provided to Customer for escalation if the first contact is not returned within 15 minutes. A Data Center representative will always be available by pager outside of Business Hours, including Holidays. Verification Method Customer may place calls at any time to determine if the phone is staffed appropriately. Inquiry Settlement Objective Customer inquiries to the Help Desk will be settled in a manner to achieve the SLOs. Help Desk personnel will attempt to resolve the inquiries themselves at initial contact with the Customer. In more complicated cases, the inquiry may be settled by assigning a task to a Data Center specialist. In such cases, the SLO performance will be monitored under the appropriate Service Level category depending on the nature of the task. Verification Method The average time that is needed to resolve a Help Desk incident will be tracked. Technical Administration Objective At times the Customer may request additional administrative services such as creating a new database instance, modifying software or requesting an extra back-up of data. Such services will be performed in a timely and cost effective manner to the Customer's benefit. For each typical service, the cost (if any) and time to complete are listed in the Scope of Services. Services not listed there may be handled on a time and materials basis. AssetWorks Hosting Services Agreement Page 21 Verification Method The average time that is needed to complete an administrative request will be tracked. Subcategory: Communication Scheduled Objective Regularly scheduled Data Center communications with the Customer will be performed in a timely manner and monthly at a minimum. Examples of potential communications that are considered as regularly scheduled is contained in the Scope of Services section of the Agreement. Late or missing communications should be reported by the Customer to the Help Desk which will escalate and resolve the issue. Verification Method The Data Center Help Desk system will track the number of reported communications problems. On Request Objective Ad-hoc requests for information by the Customer will be handled in a timely manner based on the timing commitment made by the Data Center or Help Desk in each case. The delivery times for these ad-hoc communications will be estimated by the Data Center or Help Desk as they are requested, based on their criticality and the length of preparation time required. Additional charges may apply for these communications at rates established in Section 4 of Attachment 3. Verification Method The Data Center Help Desk system will track the number of reported communications problems. Data Center Announcements Objective The Data Center will inform the customer of anticipated changes in Application availability or performance with as much advance notice as possible but always reasonably before any change occurs. The Data Center will contact the designated Customer representative via e-mail and by telephone depending on the anticipated criticality and time remaining before the event. These events will not be considered as approved and will represent a failure of the Provider to meet the related SLO. Verification Method The Data Center Help Desk system will track the number of reported communications problems. Feedback Objective The Data Center will conduct periodic surveys of key customer contacts to assess general Customer perceptions of the level of service being provided. Surveys will be formatted to support Data Center SLOs. Printed surveys at the subcategory level will be utilized annually. Telephone surveys at the category level will be utilized at least bi- annually. Verification Method The Data Center Help Desk system will track the number of reported communications problems. AssetWorks Hosting Services Agreement Page 22 Attachment 3 - Fee Schedule Start-up Fee The implementation, development, training, interface, and data conversion pricing ("Start-Up Fee") is set forth below. $ 4,875.00 $ 2,437.50 SOFTWARE- FleetFocus FA Set-up Fees (one time) 1 Crystal Server Set-up 1 (Customer will purchase Crystal as per the license quote...) Monthly Service Fees (billed annually in advance- Syr contract) The monthly fee will be $ 1,472.25 per month for the term. The monthly service fees (billed annually in advance), minimum or otherwise, will begin the 1 following the execution of this contract. Fee Adjustments st day of the month For additional vehicle units beyond the existing contract, the fee will be $ 2.79 per vehicle and/or $9.75 per month per MobileFocus unit The fees set forth herein shall remain in effect during the initial 3- year term of the Agreement. Thereafter, Provider shall have the right to adjust its fees upon 60 days prior written notice to Customer. Provider shall not adjust its fees more often than once per year. Notwithstanding Sections 3 and/or 8 of the Agreement, Customer reserves the right to terminate this Agreement on less than 60 days notice if Customer does not agree to accept Provider's proposed fee increase. Total Fee Schedule: AssetWorks Hosting Services Agreement Page 23 Hosting Services- FleetFocus FA Set-up Fees (one time)$ 4,875.00 $ 4,875.0 One Time FleetFocusFA, hosting pricing by vehicle equipment units Reports/ Adhoc Server Set-up (Customer will purchase Crystal as per the license quote.. .) Crystal Server monthly Test Reports/ Adhoc Database, monthly MobileFocus monthly, per pda 'I-' ••'•-. -^tK& ^r..vjSuBS$ii Units Per unit Monthly 350 $ 2.79 $ 975.00 1 $ 2,437.50 $ $ $ 1 $ 9 75 $ :• * Subtotal 2,437.50 487.50 500.00 9.75 $ $ $ $ J Year One 11,700.00 16,575.00 One Time Year One 5,850.00 6,000.00 117.00 '- Invoiced annually in advance Year One $ Test Reports/ Adhoc Database, monthly discount (valid I Invoiced annually in advance Year Two Test Reports/ Adhoc Database, monthly discount (valid I Invoiced annually in advance Year Three Test Reports/ Adhoc Database, monthly discount (valid I One Time Fees 7,313 for 3 years) None for 3 years) None for 3 years) $ $ $ $ $ $ $ $ $ Monthly 1,972.25 (500.00) 1,472.25 Hosting Total Year One 1,972.25 (500.00) 1,472.25 Hosting Total Year Two 1,972.25 (500.00) 1,472.25 Hosting Total Year Three $ $ $ $ $ $ $ $ $ Total 30,979.50 (6,000.00) 24,979.50 | 23,667.00 (6,000.00) 17,667.00 | 23,667.00 (6,000.00) 17,667.00 | AssetWorks will supply use of Oracle Database licenses in our datacenter. Service Fees Work requested by Customer beyond that described in Attachment 1, will be charged at the following rates. Before any work is done which would incur charges billed as Service Fees, the Provider will supply a proposal describing the work and providing an estimate of hours, cost and completion date. Customer approval will be required before work can begin. $195.00/perhour $195.00/perhour Project Management Programming and Training Actual travel, meals and lodging expenses incurred in performing such services will be included per the travel, meals and lodging section of this Fee Schedule. Service Termination Fee AssetWorks Hosting Services Agreement Page 24 If Customer terminates this Agreement other than pursuant to Section 8.2, "Termination for Default," of the Agreement or Section 3 of this Attachment 3, a Service Termination Fee equal to 100% of the Monthly Service Fees will be billed monthly until the end of the then current Term of this Agreement or 90 days, whichever is less. Travel, Meals and Lodging In addition to the fees set forth above, Customer shall reimburse Provider for pre- approved airfares, meals, ground transportation and other reasonable living expenses incurred by Provider in support of the Agreement during provision of support services at the Customer site. Provider will adhere to the Customer's Corporate Travel Polices to the extent possible. In the case of an emergency requiring immediate air travel arrangement, Provider shall use its best efforts to secure the lowest cost airfares. Under no circumstances shall Customer be responsible for business or first class airfare expenses. Data Processing Audits Eight hours per year shall be allocated to support Customer's personnel or Customer's designee in an audit of Provider's services and records during Business Hours at Provider's location. Additional hours, if needed, will be billed at the hourly rates noted above. All out of pocket expenses incurred by Customer in connection with such audits will be borne by the Customer. AssetWorks Hosting Services Agreement Page 25 CERTIFICATE OF INSURANCE NAMED INSURED CONSTELLATION SOFTWARE INC. O/A ASSETWORKS INC. 998 OLD EAGLE SCHOOL RD. WAYNE, PA 19087 U.S.A. CERTIFICATE HOLDER CITY OF CARLSBAD PUBLIC WORKS SUPERINTENDENT - CONTRACT & FLEET OPERATIONS 405 OAK AVENUE CARLSBAD. CA 92008 U.S. A. This certificate is issued as a matter of Information only and confers no rights upon the certificate holder, This certificate does not amend, extend or alter the coverage afforded by the policies below. INSURANCE COMPANIES AFFORDING COVERAGE COMPANY A Chubb Insurance Company of Canada A.M. Best Rating: A++ COMPANY B Certain Lloyd's Underwriters as represented by Media Professional Insurance A,M. Best Rating: A COMPANY C Federal Insurance Company A.M. Best Rating: A++ COMPANY D COVERAGES This is to certify that the polities or insurance listed below have been issued to the insured named above for the policy period indicated, notwithstanding any requirement, term or condition of any contract or other document with respect to which this certif cate 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 ARE IN CANADIAN DOLLARS UNLESS INDICATED OTHERWISE. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF INSURANCE COMMERCIAL GENERAL LIABILITY II CLAIMS IXl OCCURRENCE .MADE M PRODUCTS AND COMPLETED OPERATIONS | | EMPLOYERS LIABILITY 1^1 CROSS LIABILITY EK] WAIVER OF SUBROGATION ADDITIONAL INSURED: THE CITY Ol the Named Ins insurance, not NON-OWNED & HIRED AUTOMOBILE LIABILITY EXCESS LIABILITY ^ UUBRSILA | | OTHER OTHER LIABILITY (specify) PROFESSIONAL LIABILITY PROPERTY BROAD FORM 1 I REPLACEMENT 1 1 ACTUAL COST CASH VALUE LOSS PAYEE: OTHER (specify) WORKERS COMPENSATION AND EMPLOYER'S LIABILITY LIMITS IN US FUNDS (WC STATUTORY LIMITS) CO LTR A POLICY NUMBER 35780046 POLICY EFFECTIVE DATE (YYYY/MIWDD) 2008/09/27 POLICY EXPIRATION DATE (YYYY/MM/DD} 2009/09/27 LIMITS OF LIABILITY $ 1,000,000 $ 10,000,000 $ 2,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 EACH OCCURRENCE GENERAL AGGREGATE GENERAL AGGREGATE - USA PRODUCTS - COMPLETED OPERATIONS AGGREGATE PERSONAL INJURY ADVERTISING LIABILITY TENANTS LEGAL LIABILITY : CARLSBAD ITS OFFICIALS, EMPLOYEES AND VOLUNTEERS . but only with respect to liability arising oul of the operations of ured. Such insurance as is afforded by the Com mere al General LiabJity coverage on this policy will be considered as primary contributory and not excess of any other insurance. A A B 35780046 79219492 L16502T085611 Not Applicable 2008/09/27 2008/09/27 2008/09/27 2009/09/27 2009/09/27 2009/09/27 $ 1,000,000 $ 14,000,000 $ 14,000,000 $ 5.000.000 $ 250.000 EACH OCCURRENCE EACH OCCURRENCE AGGREGATE PER CLAIM & IN THE AGGREGATE DEDUCTIBLE DEDUCTIBLE C 7173-57-61 2008/09/27 2009/09/27 $ 1,000,000 $ 1 ,000,000 $ 1,000.000 E.L. - EACH ACCIDENT E.L. - EACH DISEASE / EACH EMPLOYEE E.L.- DISEASE -POLICY LIMIT DESCRIPTION OF OPERATIONS / LOCATIONS / SPECIAL PROVISIONS: RE: FLEETFOCUS MAINTENANCE - PUBLIC WORKS SUPERINTENDENT - CONTRACT & FLEET OPERATIONS BROKER The CG&B Group Inc. 120 South Town Centre Blvd. Markham, ON L6G1C3 SIGNATURED/ AUTHORIZED REPRESENTATIVE /L^xf rx^^ CANCELLATION Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will mail 30 days written notice to the certificate holder named above. PRINT NAME RUTH SCHRAM DATE (YYYY/MM/DD) 2009/07/27 NW 77S7/09I1:42 AM CERTIFICATE OF INSURANCE NAMED INSURED CONSTELLATION SOFTWARE INC. O/A ASSETWORKS INC. 998 OLD EAGLE SCHOOL RD. WAYNE, PA 19087 U.S.A. CERTIFICATE HOLDER CITY OF CARLSBAD PUBLIC WORKS SUPERINTENDENT - CONTRACT & FLEET OPERATIONS 405 OAK AVENUE CARLSBAD. CA 92008 U.S.A. This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend or alter the coverage afforded by the policies below. INSURANCE COMPANIES AFFORDING COVERAGE COMPANY A Chubb Insurance Company of Canada A.M. Best Rating: A++ COMPANY B Certain Lloyd's Underwriters as represented by Media Professional Insurance A.M. Best Rating: A COMPANY C Federal Insurance Company A.M. Best Rating: A++ COMPANY D COVERAGES This is to certify that Uia policies of insurance listed below have been issued to the insured named above for the policy period ndlcated, notwithstanding any requirement, term or condition of any contract or other document with 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 ARE IN CANADIAN DOLLARS UNLESS INDICATED OTHERWISE. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF INSURANCE COMMERCIAL GENERAL LIABILITY 1 1 CLAIMS IXl OCCURRENCE .MADE M PRODUCTS AND COMPLETED OPERATIONS 1 I EMPLOYERS LIABILITY ^ CROSS LIABILITY [X] WAIVER OF SUBROGATION D ADDITIONAL INSURED: THE CITY Ol the Named Ins insurance, not NON-OWNED & HIRED AUTOMOBILE LIABILITY EXCESS LIABILITY f^^ UMBRELLA | [ OTHER OTHER LIABILITY (specify) PROFESSIONAL LIABILITY PROPERTY BROAD FORM 1 I REPLACEMENT 1 i ACTUAL COST CASH VALUE LOSS PAYEE: OTHER (specify) WORKERS COMPENSATION AND EMPLOYER'S LIABILITY LIMITS IN US FUNDS (WC STATUTORY LIMITS) CO LTR A POLICY NUMBER 35780046 POLICY EFFECTIVE DATE (YYYY/MM/DD) 2008/09/27 POLICY EXPIRATION DATE (YYYY/MIWDO) 2009/09/27 LIMITS OF LIABILITY $ 1,000,000 $ 10,000,000 $ 2,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 EACH OCCURRENCE GENERAL AGGREGATE GENERAL AGGREGATE - USA PRODUCTS - COMPLETED OPERATIONS AGGREGATE PERSONAL INJURY ADVERTISING LIABILITY TENANTS LEGAL LIABILITY : CARLSBAD ;rs OFFICIALS, EMPLOYEES AND VOLUNTEERS . bul only with respect to liability arising out of the operations of tired. Such insurance as is afforded by the Commercial General Liability coverage on this policy will be considered as primary contributory and not excess of any other insurance. A A B 35780046 79219492 L16502T085611 Not Applicable 2008/09/27 2008/09/27 2008/09/27 2009/09/27 2009/09/27 2009/09/27 $ 1,000,000 $ 14,000,000 $ 14,000,000 $ 5,000,000 $ 250.000 EACH OCCURRENCE EACH OCCURRENCE AGGREGATE PER CLAIM SIM THE AGGREGATE DEDUCTIBLE DEDUCTIBLE C 7173-57-61 2008/09/27 2009/09/27 $ 1,000,000 $ 1,000,000 $ 1 ,000,000 E.L.- EACH ACCIDENT E.L- EACH DISEASE /EACH EMPLOYEE E.L.- DISEASE -POLICY LIMIT DESCRIPTION OF OPERATIONS / LOCATIONS / SPECIAL PROVISIONS: RE: FLEETFOCUS MAINTENANCE - PUBLIC WORKS SUPERINTENDENT - CONTRACT & FLEET OPERATIONS BROKER The CG&B Group Inc. 120 South Town Centre Blvd. Markham.ON L6G 1C3 SIGNATUREQF AUTHORIZED REPRESENTATIVE /Z^f rtf^. CANCELLATION Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will mail 30 days written notice to the certificate holder named above. PRINT NAME RUTH SCHRAM DATE (YYYY/MM/DD) 2009/07/27 NW rV09 11:42 AM /"""/'"* JP/DCGcyB GENERAL ALTERATION ENDORSEMENT NO. 2008-59 WITH RESPECT TO POLICY NO: 35780046 INSURER: INSURED: CHUBB INSUFtANCE COMPANY OF CANADA CONSTELLATION SOFTWARE INC. O/A ASSETWORKS INC. EFFECTIVE DATE: JUL Y 27, 2009 PREMIUM: N/A 40* It is understood and^greedJ^pfli(^i§iS|^nded as follows: | The C'ty of Cartsj||ff Its Officials, Employees and Vpljjp^ets , Is to be covered a] insured, but onjflfith respect to liability arising jDufSfthetpperations £\ the Nam]^" '$& $ \ Such insurance^pjs afforded by tlp|f omn|e*rcial General^bility>toverage on be considered a¥ffrjrnary insuranc contributory and nSjejIess of any othe iureds hereundeiAM • Ui t L. "^l-V- . IS. „ ..... .*$&AI .rahts of subrogation are waivedtas respects a additions insj " 1 The policy will not be cancelled, materially changed nor the am||int of coverage reduced until thirty (30) days after receipt of written nc-tio§ of cancellation or ||rduction in coverage by the Public Works Department of the City of Carlsbad, California, jjl ~ Except as provided herein, all the terms and conditions of this Policy shall have full force and effect. The Insurer agrees to notify The CG&B Group Inc., in writing, if the endorsement issued does not conform to the coverage described in this document. CG&B GROUP INC. lorized Reprg The CG&B Group Inc. 120 South Town Centre Blvd., Markham, Ontario L6G 1C3 Phone: {905)479-6670 Fax: (905)479-9164 NW 7/27/09 11:36 AM CGBFORMT704 MAY 00 Date~ GENERAL ALTERATION ENDORSEMENT NO. 2008-59 WITH RESPECT TO POLICY NO: 35780046 INSURER: INSURED: CHUBB INSUFtANCE COMPANY OF CANADA CONSTELLATION SOFTWARE INC. O/A ASSETWORKS INC. EFFECTIVE DATE: JULY 27, 2009 PREMIUM: N/A as follows: | .. JF &-l>J*V^>"' '' frS .-'-.£>*'' The City of CarisJjppTtts Officials, Employees and Volynljblffs, is to be cjoVe insured, but onllS<fith resoect to liability arisingjpjtWthefo^erationsJf the "Sffe &r covered a| Nar iJditionaj? linsurec Such insuranceH||js afforded by trp||omi^rcial General1|gbilityNcoverage on ^policy v«| be considered a^jmary insurancMlot contributory and noje^iiess of any otheMiiysLirance. ^ ^ AH rights of subrogafiofftare waivedfii respects al! additional'insureds hereunde^ ^- ^^ ^ /* A "''"^i^^?^^^^^^^^^ -" ** ^3f; ^ • The policy will not be cancelled, materially changed nor the arri^nt of coverage reduced until thirty (30) days after receipt of written notici of cancellation or |e1cluction in coverage by the Public Works Department of the City of Carlsbad, California. *v Except as provided herein, all the terms and conditions of this Policy shall have full force and effect. The Insurer agrees to notify The CG&B Group Inc., in writing, if the endorsement issued does not conform to the coverage described in this document. CG&B GROUP INC.y The CG&B Group Inc. 120 South Town Centre Blvd., Markham, Ontario L6G 1C3 Phone: (905)479-6670 Fax: (905)479-9164 NW 7/27/09 11:36 AM CSBFORMT704 MAY 00 Lisa Hildabrand Ail Receive-Agenda Item # ^T For the Information of the: OOUMOIL Subject:FW: Technology Hosting Asst. ity Manager /A" — From: Gordon Peterson Sent: Tuesday, September 22, 2009 10:57 AM To: Lisa Hildabrand Subject: Technology Hosting Lisa, A follow-up regarding the hosting question posed by Matt yesterday... The fleet application is hosted by the developer, AssetWorks, and they are the only one who host and support this application. The same goes for the library catalog/circulation application, developed and hosted by Sirsi/Dynex. There is not a big enough market for either of these applications for 3rd party hosting firms to host and support them. Smaller companies, like AssetWorks and Sirsi, typically do not own their datacenters, but rather rent space from a large hosting provider such as AT&T or Verizon. However, in these instances we have a single contract and point of contact with the software developer. In the case of Microsoft hosting, by in large they own and operate their own data centers (see below). There are other hosting vendors that host and support Microsoft products because they are so widely used (we have also found the same is true for the proposed Lawson HRIS). Through our RFP to host Microsoft collaboration tools we received quotes from 3rd party hosting firms, but Microsoft was the least expensive. When determining who, what and where to host and support an application we also consider an option called Managed Services when it's available. This is where we own the hardware, software and run it our datacenter and we contract with the application vendor to provide support remotely. In some instances if may be possible to do as Matt suggested and use a central external hosting site and still get the application vendor to provide the support. I will investigate this further and in future opportunities. However, so far every time we've asked managed service has been more expensive than full soup to nuts hosting. Increasingly, hosting (often called software as a service these days) is becoming a viable option. As opportunities arise we will continue to scrutinize what is best to keep in-house and what is best to let others do. In the right fit hosting can reduce time implement, lower the entry price and free up internal IT to focus on value-added tasks like information management and business process design/performance. Hopefully this is not too much information. Thanks, Gordon SEP 2 2 2009