Banning City Council
October 13, 2026

SECTION 2. That the City Manager or his designee is authorized to make all necessary budget adjustments, appropriations and transfers.

SECTION 3. That the City Manager is authorized to execute Amendment No. 2 to the Professional Services Agreement with Hazen Sawyer, of Palm Desert, California .

PASSED, APPROVED AND ADOPTED this 23rd day of August 2022 .

ATTEST: ~'.~
Banning Utility Authority

APPROVED AS TO FORM AND
LEGAL CONTENT:

Serita Young , Assistant Authority Counsel
Richards, Watson & Gershon
Resolution 2022- 11 UA

Colleen Wallace,
h
Acting Chairperson
Banning Utility Authority
151
CERTIFICATION:

I, Caroline Patton, Secretary of the Banning Utility Authority, do hereby certify that the foregoing Resolution 2022-11 UA, was duly adopted by the Utility Authority of the City of Banning, California, at a regular meeting thereof held on the 23rd day of August 2022 by the following vote, to wit:

AYES: Hamlin, Sanchez, and Wallace.

NOES:

ABSENT: Happe and Pingree.

ABSTAIN:

Resolution 2022- 11 UA

do,a1@ ' .·.· . ~
Caroline Patton, secaiy
Banning Utility Authority ,
152
RESOLUTION 2024- 04 UA

A RESOLUTION OF THE UTILITY AUTHORITY OF THE CITY OF BANNING, CALIFORNIA, APPROVING AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES CONTRACT FOR THE DESIGN OF WELL C-8 WITH HAZEN AND SAWYER OF PALM DESERT, CA IN THE AMOUNT OF $ 30, 406. 22 AND EXTENDING THE TERM TO JUNE 30, 2026 WHEREAS, the need for a new municipal production well in the near future was identified in the City of Banning (" City") Integrated Master Plan ( identified as Well C-8) and therefore the City advertised a Request for Proposals ( RFP) for design and inspection services for construction of a new production well and subsequently awarded an agreement to the highest- rated firm, Hazen and Sawyer, on September 10, 2018; and
WHEREAS, on February 12, 2019 City Council approved Resolution 2019- 02 UA approving Amendment No. 1 for out of work scope including looking at alternative well location sites in order to ensure the correct site was selected prior to moving forward with final design.

Amendment No. 1 increased the agreement by $ 42,087 for a total amount of $738, 383; and WHEREAS, on August 23, 2022, City Council approved Resolution 2022- 11 UA which included Amendment No. 2 to the agreement with Hazen and Sawyer. Amendment 2, included additional costs related to additional time for project management, billing rate increases, new South Coast Air Quality Management District ( SCAQMD) air quality modeling requirements and additional work needed for the well siting study; and
WHEREAS, Amendment No. 3 to the Hazen and Sawyer agreement is required to cover additional costs related to project management, testing and development and to cover increase in costs of geotechnical services as well as to extend the contract term to June 30, 2026.

NOW, THEREFORE, BE IT RESOLVED by the Banning Utility Authority of the City of Banning as follows:

SECTION 1. The Banning Utility Authority approves Amendment No. 3 to the Professional Services Agreement with Hazen and Sawyer of Palm Desert, California, in the amount of 30, 406. 22 for a contract " not- to-exceed" $ 915, 089. 22 and extends the term to June 30, 2026 and authorizes the City Manager to make necessary non- substantive changes to the amendment and to execute said amendment.

SECTION 2. The Utility Authority authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution.

SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 12th day of March 2024.

Resolution 2024- 04 UA

Alberto S ch z, Chairperson
Bannin tility Authority
153
ATTEST:

Caroline Patton , Sec ry
Banning Utility Authority

APPROVED AS TO FORM AND
LEGAL CONTENT:

Serita R. Young, Authority Counsel
Richards, Watson & Gershon
Resolution 2024- 04 UA

154
CERTIFICATION:

I, Caroline Patton, Secretary of the Banning Utility Authority , do hereby certify that the foregoing Resolution 2024- 04 UA, was duly adopted by the Utility Authority of the City of Banning , California, at a regular meeting thereof held on the 12th day of March 2024 by the following vote, to wit:

AYES: Flynn , Happe , Minjares , Sanchez , and Wallace.

NOES :

ABSENT:

ABSTAIN :

Resolution 2024- 04 UA

Caroline Patton , secrety
Banning Utility Authorit y
155
Exhibit A
Amendment No. 3 to the Professional Services Agreement with Hazen and Sawyer Resolution 2024- 04 UA

156
AMENDMENT NO. 3 TO DESIGN SERVICES AGREEMENT (C00409)

FOR THE PERFORMANCE OF THE GEOHYDROLOGIC AND

ENGINEERING DESIGN SERVICES FOR THE CITY OF BANNING
WELL C-8, PROJECT NUMBER 2018-02W BY AND BETWEEN CITY

OF BANNING AND HAZEN AND SAWYER
TIDS AMENDMENT NO. 3 TO THE DESIGN SERVICES AGREEMENT
Amendment No. 3") by and between the CITY OF BANNING (" City") and HAZEN AND SAWYER, a New York Corporation (" Consultant") is effective as of this day:

RECITALS
A. City and Consultant entered into that certain Agreement for Design Services dated September 10, 2018 (" Agreement") following RFP 18-012 for the performance of the Geohydrologic and Engineering Design Services for the Banning Well C-8 as approved by Utility Authority Resolution 2018-03 UA.

B. City and Consultant entered into Amendment No. 1 to the Agreement dated September 5, 2019, to modify the Scope of Services, extend the Term of the Agreement by September 9, 2020, and increase the Contract Sum to $ 713,383.00, as approved by Utility Authority Resolution 2019-02 UA.

C. City and Consultant entered into Amendment No. 2 to the Agreement dated September 18, 2022, to extend the Term of the Agreement to June 30, 2025, and increase the Contract Sum to $884,683.00, as approved by Utility Authority Resolution 2022-11 UA.

D. City and Consultant now desire to amend the Agreement to modify the Scope of Services, extend the Term ofthe Agreement to June 30, 2026, and increase the Contract Sum to $915,089.22.

The Parties therefore agree follows:

1. Amended Terms. The Agreement is hereby amended as follows:

1.1 The Scope of Services as set forth in Section 1.1 of and Exhibit A to the Agreement is hereby amended to include the additional Services set forth in Attachment No. 1, attached hereto and incorporated herein by this reference.

1.2 The maximum compensation for the Services performed pursuant to this Amendment No. 3 shall not exceed Fifty-Five Thousand Four Hundred Six Dollars and Twenty-Two Cents ($ 55,406.22), as set forth in Attachment No. 1, thereby increasing the Contract Sum, as set forth in Section 2.1 and Exhibit C of 157
the Agreement, to Nine Hundred Fifteen Thousand Eighty-Nine Dollars and Twenty-Two Cents ($ 915,089.22).

1.3 The Term of the Agreement, as set forth in Section 3.4 of the Agreement, is hereby extended through June 30, 2026, unless sooner terminated or extended as provided in the Agreement.

2. Miscellaneous Provisions

2.1 Continued Effect ofAgreement. Except as amended by this Amendment No. 3, all provisions ofthe Agreement, as amended by Amendment Nos. 1 and 2, shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 3, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement, as amended by Amendment Nos. 1 through 3. In the event of a conflict between the provisions ofthis Amendment No. 3 and the provisions ofthe Agreement or Amendments No. 1 through 2, the provisions of this Amendment No. 3 shall control.

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 3.

2.3 Authority. The persons executing this Amendment No. 3 on behalfofthe parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 3 on behalf of said party, iii) by so executing this Amendment No. 3, such party is formally bound to the provisions ofthis Amendment No. 3, and (iv) entering into this Amendment No. 3 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 3 may be signed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (" electronic signature"). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.

SIGNATURE PAGE FOLLOWS]
158
The Parties are signing this Amendment No. 3 on the date stated in the introductory clause.

CITY OF BANNING
Douglas Schulze,
City Manager
City Council Approval: ______ _
ATTEST:

Caroline Patton
Administrative City Clerk
APPROVED AS TO FORM:

Richards, Watson & Gershon
Serita R. Young
City Attorney

CONSULTANT
NAME:

TITLE:

NAME:

TITLE:

NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED.

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULT ANT' S BUSINESS ENTITY.
159
ATTACHMENT NO. I
Hazen
December 19, 2023
To: Arturo Vela, PE
City of Banning Public Works Director
From: Jerimy Borchardt, PE
Cc: Marc Solomon, PE
Re: Geohydrologic and Engineering Services for Well C-8 Request for Amendment On behalf of Hazen and Sawyer responsible for assisting the City with the planning, coordination , and preparation of bid documents for the drilling, development , and equipping of Well C-8 thank you for the City ' s collaborative working relationship. As we recently discussed , there have been few items associated with the Well C -8 project which have impacted the Hazen team ; below is a summary .

Background
Our Well C -8 contract was executed in August 2018 with an estimated construction completion in June 2020. The current schedule estimates construction completion in early 2026.

After the original siting study was delivered in early summer 20 I9 , a new well location was identified by the City in the spring of 2020 . After coordination efforts to confirm the viability o f the new location , the Hazen team prepared a revised well siting study, including conceptual site layouts , for the new location.

Hazen next prepared a draft IS /MND , the final IS /MND , and draft NOi was delivered in December 2021.

Overall , the document development and subsequent review period took approximately ten months longer than anticipated at contract execution. Hazen prepared the response and submitted the final MND to the City in July 2022 and assisted the City with County filing through October 2022.

The well drilling bid documents were advertised in November 2022 and bids were opened in January 2023 with the awarded contractor mobilizing to the well site in April 2023. Well construction was recently comp leted in December 2023 , approximately two months later than scheduled ( and is pa1t of the need for this request).

The well equipping design is also currently underway and will be completed early summer 2024 with planned bid period in August 2024 and construction complete in winter 2026 .

Amendment Summary
160
The following paragraphs present the basis for Hazen' s amendment request. Hazen respectfully requests a total contract amendment of $30,406.22 as outlined by the Tasks below.

Task 01 - Project Management
The amendment request for Project Management is the result of the additional effort required for coordination with Kyle Groundwater and the City regarding the well drilling issues including budget discussions with the City, budget updates and tracking, and preparation of this amendment. The project management effort was 8 additional hours.

We are requesting an additional $ 2,080 for Task 01 representing the additional project management eff011 related to the well drilling issues and required coordination.

Task 05 - Plans, Specifications, and Cost Estimate for Drilling This amendment request is for additional geotechnical services budget because of updated rate schedule for our subcontractor Leighton Consulting, Inc. from the original proposal which assumed the geotechnical investigation would occur in 2019; these services will now be completed in early 2024.

Hazen did not request a budget increase with Amendment #2 because we believed we would be able to absorb the fee increase from the original contract; however, at this point we will not be able to absorb both contract increases.

We are requesting $ 4,991 for Task 05 representing the additional cost for geotechnical investigation services.

Task 08 - Drilling Inspection, Hydrogeological Services, and Water Quality Testing This amendment request is the result of several well drilling items for a total of $23,335.22:

Aquifer Zone Testing ( Subtask 8.16)- during the well drilling and as part ofthe zone seal verification process, multiple zones exhibited leaks, indicating there was no seal. Specifically for Zone 3, after three failed attempts at an upper seal, the seal was drilled out and reset at a deeper depth. Additionally, the well driller had issues with airlifting and pumping. Both issues required our subcontractor performing drilling inspections, Kyle Groundwater, to return and spend an additional 43 .5 hours of inspection time.

We are requesting $ 5,448 for the additional time required for inspection services. These services were required because of issues with the well driller's discharge solids settlement approach which limited the duration ofthe test to less than required in the specifications.

Chemical Development ( Subtask 8.17) - this additional scope item was requested by the City and is a process used to break down the drilling fluid polymer chains using high concentrations of sodium hypochlorite. This process helps to more fully remove the drilling additives and improve long term capacity and efficiency of the well. We are requesting $ 5,468 which represents 44 hours of Kyle Groundwater' s time and expense for development ofthe process plan and inspection required for mixing, application, neutralization, and wastewater discharge during the process.

Pump Development ( Subtask 8.18) - the well driller had multiple issues with their pump during the well development phase ( pump not working properly, sounder getting stuck in pump, fixing leaks, bowl 161
assembly breaking), which afte r several attempts to resume pumping ul timately resulted in complete sh utdown , removal , and repair of the pump. During the multiple pumping attempts , Kyle Grou ndwater was onsite to observe the final development pumping shou ld it proceed. After the pump was repaired the Ci ty, Kyle Groundwater, and Hazen ag reed that full time o bservation of the final development pumping was necessary. A ll these events resulted in 81. 5 hours of add iti onal obse rvat io n time at a total of $9, 541. 72.

Mini Constant Rate Test and Spinner Survey ( Subtask 8.19) - the well driller was not able to complete a spinn er survey at the conclusion of the 24- h our Constant Rate Test ( C RT) beca use of mechanical is s ues ( ta pe on the bottom of the access tube). Kyle Gro und wate r had to return the fo llowing day and observe a " mini" CRT and Spinner Survey resulting in 17.0 additiona l hours of labor and a total of $2, 048 .

Well Disinfection ( Subtask 8.20) - the well driller commu nic ated to Kyle Groundwater that disinfection was planned for November 29th ; howeve r, when Kyle Groundwater arrived on-s ite , the well driller wanted to perform other site tasks before the disinfection. U ltim ately, the disinfection didn ' t o ccur until November 30th requiring Kyle Groundwater to return to the site to observe the disinfection resulting in 6. 75 additional hours and totaling $ 829. 50 .

Task Summary
Table 1: Amendment Request Summary
Amendment
Current Budget Amount Revised Budget
Task 01 - Project Management and Quality Control $ 73 ,581 .00 $ 2 ,080 .00 $ 75,661. 00 Task 05 - Plans , Specifications , and Cost Estimate for $ 42,670. 00 $ 4 ,991 . 00 $ 47, 661 . 00
Drilling
Task 08 - Drilling Inspection , Hydrogeological Services , $ 80 ,909. 50 $ 23 ,335 .22 $ 104 ,244. 72
and Water Quality Te sting
Total $ 30,406.22
The Hazen team is deeply vested in this c ri tical project and truly app reci ates the working relationship we 've developed with the City 's team ..

Thank you for your consideration of this amendment request. Please contact Jerimy at jborchardt@ hazenandsawyer. com / 559-285- 7557 , or Marc So lomon at msolomon @ hazenandsawyer. com / 707 - 696 -93 18 if yo u have any questions o r require add iti onal informati on.
162

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Patrick Safari, Capital Improvement Projects Manager Art Vela, Director of Public Works
MEETING DATE: October 13, 2026
SUBJECT: Consideration of Resolution 2026-133, Approving Program Supplement No. F006 to Master Agreement No. 08-5214F15 with the State of California Department of Transportation for Federal-Aid Funding for the Zero-Emission Transit Vehicle Charging Equipment and Infrastructure Project, and approve the necessary budget appropriations.

STAFF RECOMMENDATION:

Adopt Resolution 2026-133
BACKGROUND:

The City of Banning is committed to improving its transit infrastructure and reducing emissions. To support these goals, staff has pursued federal funding opportunities to purchase and install charging equipment and infrastructure for zero-emission transit vehicles at the City's Corporate Yard, near the intersection of Lincoln Street and San Gorgonio Avenue.

On December 16, 2016, the City of Banning entered into Master Agreement No. 08-5214F15 (the "Master Agreement") with the State of California, acting by and through its Department of Transportation (Caltrans). This Master Agreement establishes the general terms and conditions under which the City, as the Administering Agency, may receive federal-aid funds for eligible transportation projects. The Master Agreement requires that each specific project be authorized through a project-specific Program Supplement approved by Caltrans and the Federal Highway Administration (FHWA).

JUSTIFICATION:

To receive federal funding for the Zero-Emission Transit Vehicle Charging Equipment and Infrastructure Project (the "Project"), the City must execute Program Supplement No. F006. This Program Supplement adopts and incorporates the terms of the Master Agreement and sets forth the specific funding, scope, and special covenants for the Project.

Staff has reviewed the Program Supplement and finds that it is consistent with the Master Agreement and in the best interest of the City of Banning. Approval of this Program Supplement is a necessary step to obligate the federal funds and proceed with the Project.

FISCAL IMPACT:

Approval of Program Supplement No. F006 will authorize the receipt of $488,666.00 in federal-aid funds for the Project.

The total estimated project cost is $552,000.00, which requires a local match of $63,334.00. An 163
appropriation of $63,334.00 is needed for the local match in the Transit Capital Expenditures Account No. 610-5800-434.90-56. RCTC will fund the local match on a reimbursement basis. The proposed Capital Improvement Program Budget includes a budget for the grant portion of the Project cost of $488,666.00.

Revenue budgets must be established for grant reimbursements in the Transit Revenue Account Nos. 610-5800-341.31-64 for the Caltrans grant $488,666.00 and 610-5800-341.31-25 for the RCTC grant $63,334.00.

ATTACHMENTS:

1. Resolution_2026-133_EDITED_jt.docx

2. Master Agreement No. 08-5214F15.pdf

3. Supplement Agreement No.F006.pdf
164
Resolution 2026-133

RESOLUTION 2026-133

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPROVING PROGRAM SUPPLEMENT NO. F006 TO MASTER AGREEMENT NO. 08- 5214F15 WITH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR

FEDERAL-AID FUNDING FOR THE ZERO-EMISSION TRANSIT VEHICLE CHARGING

EQUIPMENT AND INFRASTRUCTURE PROJECT, AND APPROVE THE NECESSARY

BUDGET APPROPRIATIONS
WHEREAS, the City of Banning is committed to improving its transit infrastructure and reducing emissions to support the health, safety, and mobility of its residents; and WHEREAS, on December 16, 2016, the City of Banning entered into Master Agreement No. 08-5214F15 (the "Master Agreement") with the State of California, acting by and through its Department of Transportation (Caltrans), which establishes the terms and conditions under which the City, as the Administering Agency, may receive federal-aid funds for eligible transportation projects; and
WHEREAS, the Master Agreement requires that each specific project be authorized through a project-specific Program Supplement approved by Caltrans and the Federal Highway Administration (FHWA); and
WHEREAS, the City desires to purchase and install zero-emission transit vehicle charging equipment and infrastructure at the City's Corporate Yard, located near the intersection of Lincoln Street and Gorgonio Avenue (the "Project"); and
WHEREAS, Program Supplement No. F006 has been prepared for the Project, which adopts and incorporates the terms of the Master Agreement and sets forth the specific funding, scope, and special covenants for the Project; and
WHEREAS, Program Supplement No. F006 identifies the estimated total project cost as $552,000.00, with federal funds in the amount of $488,666.00 and local matching funds in the amount of $63,334.00; and
WHEREAS, staff has reviewed Program Supplement No. F006 and finds that it is consistent with the Master Agreement and in the best interest of the City of Banning; and WHEREAS, an expense budget for the local match of $63,334.00 is necessary in Account No. 610-5800-434.90-56; additionally, the proposed Capital Improvement Program Budget includes a budget for the grant portion of the project cost of $488,666.00; and WHEREAS, revenue budgets must be established for grant reimbursements in the Transit Revenue Account Nos. 610-5800-341.31-64 for the Caltrans grant $488,666.00 and 610-5800- 341.31-25 for the RCTC grant $63,334.00.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council approves Program Supplement Agreement No. F006 to the Master Agreement No. 08-5214F15 with the State of California Department of Transportation for 165
Resolution 2026-133

federal-aid funding for the Zero-Emission Transit Vehicle Charging Equipment and Infrastructure Project.

SECTION 2. The City Council authorizes the City Manager, or their designee, to execute Program Supplement No. F006 and any related documents necessary to accept and administer the federal-aid funds for the Project.

SECTION 3. The City Council authorizes the necessary budgets as outlined above.

SECTION 4. The City Council authorizes the City Manager to make necessary non-substantive changes and execute any amendments to Program Supplement No. F006, subject to Caltrans approval, that do not materially alter the scope of the Project or the City's financial obligations.

SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 13th day of October 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
APPROVED AS TO FORM:
,Esq.

Slovak, Baron, Empey, Murphy & Pinkney, LLP
166
Resolution 2026-133

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-133, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 13th day of October 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
167
Resolution 2026-133

EXHIBIT A
Program Supplement Agreement No. F006
168
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F006
FOR FEDERAL-AID PROJECTS NO 08-5214F15
0825000128
August 25, 2026
08-RIV-0-BAN
CRPL-5214(019)
5214
This Program Supplement hereby adopts and incorporates the Administering Agency-State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 12/16/2016 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the Administering Agency on (See copy attached).

The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special covenants or remarks set forth on the following pages.

City's Corporate Yard, near Lincoln Street & Gorgonio Ave. Intersection Transit Related- Purchase &I nstall zero-emission transit vehicle charging equipment & Infastructure

0.0(MILES)
Estimated Cost Federal Funds Matching Funds
Y607 $488,666.00

CITY OF BANNING
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$552,000.00 $63,334.00 $0.00
Chief, Office of Project Implementation

STATE OF CALIFORNIA
Department of Transportation
$488,666.00
Program Supplement 08-5214F15-F006- ISTEA 1Page of 6
8/25/2026
195

SPECIAL COVENANTS OR REMARKS
08-RIV-0-BAN
CRPL-5214(019)

1. A. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual.

B. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s).

C. STATE and ADMINISTERING AGENCY agree that any additional funds which might be made available by future Federal obligations will be encumbered on this PROJECT by use of a STATE-approved "Authorization to Proceed" and Finance Letter. ADMINISTERING AGENCY agrees that Federal funds available for reimbursement will be limited to the amounts obligated by the Federal Highway Administration.

D. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract.

Failure to do so will cause a delay in the State processing invoices for the construction phase.

Attention is directed to Section 15.6 "Award Package" of the Local Assistance Procedures Manual.

E. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period.

If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.

ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual.

F. Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure Program Supplement 08-5214F15-F006- ISTEA Page 2 of 6
196

SPECIAL COVENANTS OR REMARKS
08-RIV-0-BAN
CRPL-5214(019)
nondiscrimination in the award and administration of Federal-assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

G. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter.

Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance.

ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date.

H. As a condition for receiving federal-aid highway funds for the PROJECT, the Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Exclusion List. Exclusions can be found at www.sam.gov.

2. A. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures (including those set forth in the Local Assistance Procedures Manual and the Local Assistance Program Guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURES") relating to the federal-aid program, all Title 23 Code of Federal Regulation (CFR) and 2 CFR Part 200 federal requirements, and all applicable federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise specifically waived as designated in the executed project-specific PROGRAM SUPPLEMENT.

B. Invoices shall be formatted in accordance with LOCAL ASSISTANCE PROCEDURES.

C. ADMINISTERING AGENCY must have at least one copy of supporting backup Program Supplement 08-5214F15-F006- ISTEA Page 3 of 6
197

SPECIAL COVENANTS OR REMARKS
08-RIV-0-BAN
CRPL-5214(019)
documentation for costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

D. Indirect Cost Allocation Plan/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to STATE (Caltrans Audits & Investigations) for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect costs incurred within each fiscal year being claimed for State and federal reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the Local Assistance Procedural Manual, and the ICAP/ICRP approval procedures established by STATE.

E. STATE will withhold the greater of either two (2) percent of the total of all federal funds encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

F. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid rank and file STATE employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand within thirty (30) days of such invoice.

G. ADMINISTERING AGENCY agrees to comply with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards.

H. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items.

I. Every sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), and other applicable STATE and FEDERAL regulations.

J. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, 48 CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL regulations, are subject to repayment by ADMINISTERING AGENCY to STATE.

Program Supplement 08-5214F15-F006- ISTEA Page 4 of 6
198

SPECIAL COVENANTS OR REMARKS
08-RIV-0-BAN
CRPL-5214(019)
K. STATE reserves the right to conduct technical and financial audits of PROJECT WORK and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by the following paragraph:

ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts and ADMINISTERING AGENCY shall furnish copies thereof if requested.

All of the above referenced parties shall make such AGREEMENT, PROGRAM SUPPLEMENT, and contract materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years from the date of submission of the final expenditure report by the STATE to the FHWA.

L. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices set to or paid by STATE.

M. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act of 2 CFR 200 if it expends $750,000 or more in Federal Funds in a single fiscal year of the Catalogue of Federal Domestic Assistance.

N. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING AGENCY's annual audit and in the schedule of projects to be examined under its single audit prepared in accordance with 2 CFR, Part 200.

O. ADMINISTERING AGENCY shall not award a non-A&E contract over $5,000, construction contracts over $10,000, or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.

P. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain provisions B, C, F, H, I, K, and L under Section 2 of this agreement.

Program Supplement 08-5214F15-F006- ISTEA Page 5 of 6
199

SPECIAL COVENANTS OR REMARKS
08-RIV-0-BAN
CRPL-5214(019)

3. Appendix E of the Title VI Assurances (US DOT Order 1050.2A) During the performance of this agreement, the ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractor, (hereinafter referred to as the "contractor") agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:

Pertinent Nondiscrimination Authorities:

A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21.

B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); C. Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), (prohibits discrimination on the basis of sex);
D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
F. Airport and Airway Improvement Act of 1982, (49 U.S.C. 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or
activities" to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not);
H. Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; I. The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); J. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
K. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).

Program Supplement 08-5214F15-F006- ISTEA Page 6 of 6
200

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Patrick Safari, Capital Improvement Projects Manager Art Vela, Director of Public Works
MEETING DATE: October 13, 2026
SUBJECT: Consideration of Resolution 2026-134, Approving Amendment No. 2 to the Professional Services Agreement with UltraSystems Environmental, Inc. for an Additional Amount of $11,140 for Pre-Construction Environmental Survey Work Related to the Sun Lakes Boulevard Extension Project, and approving the necessary budget appropriations STAFF RECOMMENDATION:

Adopt Resolution 2026-134
BACKGROUND:

The Sun Lakes Boulevard Extension is a critical infrastructure project that will construct a new 1-mile roadway segment, providing a vital east-west connection between Highland Home Road and Sunset Avenue. The project is designed to improve traffic circulation, reduce congestion on parallel routes, and support planned community development.

On January 27, 2026, City Council adopted Resolution No. 2026-18, awarding a Professional Services Agreement to UltraSystems Environmental, Inc., for Construction Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project in the amount of $381,900.

On February 24, 2026, City Council approved Amendment No. 1 to the Professional Services Agreement, adding $230,770 for additional permitting and regulatory compliance requirements, bringing the total "Not-to-Exceed" contract value to $612,670.

Since the approval of Amendment No. 1, UltraSystems has identified two additional, nondiscretionary pre-construction survey tasks required pursuant to the Incidental Take Permit (ITP) conditions. These tasks were not included in the original contract or Amendment No. 1 and are necessary to ensure compliance with CDFW (California Department of Fish and Wildlife) requirements prior to ground disturbance.

JUSTIFICATION:

To ensure full regulatory compliance and avoid project delays, staff recommends approving Amendment No. 2 to the Professional Services Agreement with UltraSystems. This amendment will fund additional services related to the following permits, which are outside the current scope of work:

Task 1 – Burrowing Owl (BUOW) Pre-Construction Survey: UltraSystems will conduct protocollevel pre-construction surveys for Burrowing Owl within the Project Area and a 500-foot buffer zone. Work will include a habitat assessment, focused pedestrian surveys to identify occupied 201
burrows and sign, mapping of all burrows and suitable habitat, and preparation of a PreConstruction Survey Report summarizing survey methods, results, and recommended avoidance and minimization measures.

Task 2 – Crotch's Bumble Bee (CBB) Survey Plan Preparation: UltraSystems will prepare a Crotch's Bumble Bee Pre-Construction Survey Plan (PCSP) in compliance with the requirements of CESA Incidental Take Permit (ITP) No. 2081-2025-079-06. The plan will establish protocol-level survey methods, timing, and effort necessary to determine presence/absence of Bombus crotchii within the Project Area and a 50-foot buffer, and will identify suitable foraging, nesting, and overwintering habitat.

These tasks are highly technical, time-sensitive, and were originally assumed to be covered under the City’s general construction management or prime design contracts; however, those existing agreements do not include the specialized regulatory expertise required. UltraSystems, as the City’s appointed environmental monitor, is uniquely positioned to perform this work efficiently without requiring a new procurement process, avoiding mobilization delays and ensuring continuity of documentation.

Staff has reviewed the proposed scope and fee of $11,140 and finds it to be fair, reasonable and in the best interest of the City of Banning. This Amendment No. 2 brings the total “Not-to-Exceed” contract value to $623,810.

FISCAL IMPACT:

Staff recommends approving Amendment No. 2 to the Professional Services Agreement with UltraSystems Environmental Inc. for an additional amount of $11,140.

The project costs remain eligible for reimbursement through previously awarded grant funding. As noted in the original Resolution 2026-18, the TUMF and MARA grant agreements total $33,500,000 in eligible reimbursements for design, construction, environmental monitoring, utilities relocation, and environmental permitting. Staff confirms that these additional permit compliance services qualify as eligible environmental permitting costs.

An appropriation from Measure A Fund in the amount of $11,140 to Account No. 101-4900-431.93-16 is necessary to fund Amendment No. 2 to the Professional Services Agreement with UltraSystems Environmental, Inc. for Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project. Amendment No. 2 brings the total “Not-to-Exceed” contract value to $623,810. City staff will submit monthly reimbursement invoices to RCTC and WRCOG.

ATTACHMENTS:

1. Resolution_2026-134_edited_JT.docx

2. Resolution 2026-18.pdf

3. Ultrasystems Amendment #1.pdf

4. UltraSystems Change Order.pdf

5. UltraSystems__Draft_Contract_Amendment__2.docx
202
Resolution 2026-134

RESOLUTION 2026-134

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH ULTRASYSTEMS ENVIRONMENTAL, INC. FOR AN ADDITIONAL AMOUNT OF $11,140 FOR

PRE-CONSTRUCTION ENVIRONMENTAL SURVEY WORK RELATED TO THE SUN LAKES

BOULEVARD EXTENSION PROJECT AND APPROVING THE NECESSARY BUDGET APPROPRIATIONS.

WHEREAS, the Sun Lakes Boulevard Extension Project is a critical infrastructure project that will construct a new 1-mile roadway segment between Highland Home Road and Sunset Avenue to improve traffic circulation, reduce congestion, and support planned community development; and
WHEREAS, on January 27, 2026, the City Council adopted Resolution No. 2026-18 awarding a Professional Services Agreement to UltraSystems Environmental, Inc. for Construction Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project in the amount of $381,900; and
WHEREAS, On February 24, 2026, City Council approved Amendment No. 1 to the Professional Services Agreement, adding $230,770 for additional permitting and regulatory compliance requirements, bringing the total "Not-to-Exceed" contract value to $612,670; and WHEREAS, since the approval of Amendment No. 1, UltraSystems has identified two additional, non-discretionary pre-construction survey tasks required pursuant to the Incidental Take Permit (ITP) conditions that were not within the original scope of the environmental monitoring services agreement or Amendment No. 1; and
WHEREAS, the project requires compliance with the California Endangered Species Act (CESA) Incidental Take Permit (ITP) No. 2081-2025-079-06 issued by the California Department of Fish and Wildlife (CDFW), which requires protocol-level pre-construction surveys for Burrowing Owl and the preparation of a Crotch's Bumble Bee Pre-Construction Survey Plan; and WHEREAS, the ITP carries strict survey and reporting requirements, and failure to comply could result in substantial fines, project shutdowns, or legal liability, and the City is legally bound to fulfill these requirements under the California Environmental Quality Act (CEQA) Mitigation Monitoring and Reporting Program (MMRP) and the terms of the permit itself; and WHEREAS, these tasks are highly technical, time-sensitive, and were originally assumed to be covered under the City’s general construction management or prime design contracts; however, those existing agreements do not include the specialized regulatory expertise required; and
WHEREAS, UltraSystems, as the City’s appointed environmental monitor, is uniquely positioned to perform this work efficiently without requiring a new procurement process, avoiding mobilization delays and ensuring continuity of documentation; and WHEREAS, staff has reviewed the proposed scope of work and fee of $11,140 and finds it to be fair, reasonable, and in the best interest of the City of Banning; and WHEREAS, the additional services are eligible for reimbursement through the Transportation Uniform Mitigation Fee (TUMF) funds administered by the Western Riverside 203
Resolution 2026-134

Council of Governments (WRCOG) and Measure A Regional Arterial (MARA) funds administered by the Riverside County Transportation Commission (RCTC) in the amount of $33,500,000; and WHEREAS, an appropriation from Measure A Fund in the amount of $11,140 to Account No. 101-4900-431.93-16 is necessary to fund Amendment No. 2 to the Professional Services Agreement with UltraSystems Environmental, Inc. for Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project, and City staff will submit monthly reimbursement invoices to RCTC and WRCOG.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council approves Amendment No. 2 to the Professional Services Agreement with UltraSystems Environmental, Inc. for an additional amount of $11,140 for construction environmental monitoring services related to the construction of the Sun Lakes Boulevard Extension Project. Amendment No. 2 brings the total “Not-to-Exceed” contract value to $623,810.

SECTION 2. The City Council approved the appropriation from the Measure A Fund in the amount of $11,140 to Account No. 101-4900-431.93-16.

SECTION 3. The City Council authorizes the City Manager, or their designee, to execute Amendment No. 2 to the Professional Services Agreement with UltraSystems Environmental, Inc.

SECTION 4. The City Council authorizes the City Manager to make necessary non-substantive changes and execute Amendment No. 2 to the Professional Services Agreement with UltraSystems Environmental, Inc.

SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 13th day of October 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
204
Resolution 2026-134

APPROVED AS TO FORM:
,Esq.

Slovak, Baron, Empey, Murphy & Pinkney, LLP
205
Resolution 2026-134

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-134, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 13th day of October 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
206
Resolution 2026-134

EXHIBIT A
Amendment No. 2 Professional Services Agreement with UltraSystems Environmental, Inc. 207
RESOLUTION 2026- 18

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT FOR PROJECT NO. 2020- 04 SUN

LAKES BOULEVARD EXTENSION PROJECT FOR ENVIRONMENTAL MONITORING SERVICES, TO ULTRASYSTEMS ENVIRONMENTAL, INC. IN THE AMOUNT OF $ 381, 900 AND APPROVING A 10% CONTINGENCY FOR A TOTAL BUDGET OF " NOT -TO -EXCEED" 420, 090.

WHEREAS, the Sun Lakes Boulevard Extension is a critical infrastructure project that will construct a new 1 - mile roadway segment, providing a vital east -west connection between Highland Home Road and Sunset Avenue. The project is designed to improve traffic circulation, reduce congestion on parallel routes, and support planned community development; and WHEREAS, on April 14, 2020, City Council approved Resolution No. 2020- 48for Professional Services Agreement with WEBB for the design and environmental impact studies of the Sun Lakes Boulevard Extension Project in the amount of $548, 416. 05. The Agreement was subsequently amended five (5) times resulting in a total design cost of $1, 364, 706. 6; and WHEREAS, the construction of this project, while essential, will create environmental impacts that have been carefully analyzed and mitigated through the California Environmental Quality Act ( CEQA) process performed by WEBB; and
WHEREAS, the project necessitates the services of a qualified environmental monitoring team to ensure that all work aligns with the mandated Mitigation Monitoring and Reporting Program ( MMRP), meets state and federal regulatory standards, and fulfills all obligations for environmentally sensitive resources of this project; and WHEREAS, on July 14, 2020, City Council adopted Resolution No. 2020- 97, authorizing the City Manager to execute a Transportation Uniform Mitigation Fee (TUMF) Reimbursement Agreement with Western Riverside Council of Government ( WRCOG) for up to $ 1, 000,00 in TUMF funds for the Sun Lakes Boulevard Extension project with subsequent two amendments increasing the grant agreement to a total of $ 20, 000,00; and WHEREAS, on October 24, 2023, City Council adopted Resolution 2023- 174, authorizing the Mayor to execute an Agreement for Measure A Regional Arterial ( MARA) funding with the Riverside County Transportation Commission ( RCTC) in the amount of $ 13, 500, 000 for the Construction of the Sun Lakes Boulevard Extension Project; and WHEREAS, on November 5, 2025, staff released a Request for Proposals (RFP) for Sun Lakes Boulevard Extension Project Construction Environmental Monitoring Services on the City' s public bidding platform; and
WHEREAS, on December 15, 2025, in response to the RFP, nine ( 9) proposals were received ranging in score from 90. 33 to 76; and
WHEREAS, the scope of work will include project management, general monitoring program, Crotch' s Bumble Bee monitoring, vegetation clearance and pre -construction nesting bird, monitoring and inadvertent discovery and fossil discovery; and Resolution 2026- 18

WHEREAS, the retention of a qualified environmental monitoring consultant is a fundamental and non -discretionary component of responsible project delivery for the Sun Lakes Boulevard Extension project and it will ensure that we meet our legal obligations, protect the environment, manage financial and schedule risks, and fulfill the commitments made to our community and regulatory partners during the environmental review process; and WHEREAS, staff recommends awarding a Professional Services Agreement to UltraSystems Environmental Inc. in the amount of $381, 900 and approving a 10% contingency in the amount of $381, 900 for a total " not -to -exceed" project budget of $ 420, 090; and WHEREAS, the project costs are eligible and expected to be fully reimbursed through TUMF Funds administered by WRCOG and MARA funds administered by RCTC. Both grants will provide funding totaling $ 33, 500, 000 which will include design, construction, environmental monitoring, utilities relocation and environmental permitting; and WHEREAS, the project shall be funded through Measure " A" Account No. 101- 4900- 431. 93- 16 and City staff will submit monthly reimbursement invoices to RCTC and WRCOG.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council approves the Professional Services Agreement with UltraSystems Environmental, Inc. in the amount of $ 381, 900and approving a 10% contingency for a total budget of "not -to -exceed" $420, 090 for the environmental monitoring services during the construction of Sun Lakes Boulevard Extension Project.

SECTION 2. The City Council authorizes the City Manager, or their designee, to execute the Professional Services Agreement with UltraSystems Environmental, Inc.

SECTION 3. The City Council authorizes the City Manager to make necessary non -substantive changes and execute the Professional Services Agreement with UltraSystems Environmental, Inc.

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 27th day of January 2026.

Rich*' rd Royc , Mayor
City f Banning
Resolution 2026- 18

ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
APPROVED AS TO FORM:

Johy( PjA ney, City Attorne
Slov' c!I<, Baron, Empey, Murphy & Pinkney, LLP
Resolution 2026-18

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-18, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 27th day of January 2026 by the following vote, to wit:

AYES: Barrington, Flynn, Miller, Royce, Wallace
NOES: None
ABSENT: None
ABSTAIN: None
Resolution 2026-18

Sandra Calderon, Deputy City Clerk
City of Banning, California
211

EXHIBIT A
Professional Services Agreement with UltraSystems Environmental, Inc.

Resolution 2026- 18

212
PREPARED BY:

PRICE PROPOSAL FOR THE
SUN LAKES BLVD. EXTENSION

ENVIRONMENTAL MONITORING SERVICES
ovei

BANNING

CITY OF BANNING, PUBLIC WORKS DEPARTMENT
99 E. RAMSEY STREET
BANNING, CA 92220
UltraSvstem
ULTRASYSTEMS ENVIRONMENTAL, INC.
16431 SCIENTIFIC WAY
IRVINE, CA 92 618
UEI No. 251106
213
214
Sun Lakes Blvd Extension - Environmental Monitoring Services

1. 0 PRICE PROPOSAL
The following table provides a
summary of our proposed fees. Table 1. 0-2 includes UltraSystems 2026 Rate Schedule.

Table 1. 0-

PROPOSED FEES
Project Management

1. Kick- offMeeting ( One) 560
L2 Progress Meetings ( 10) 5, 670

1. 3 Invoicing ( Monthly) 0
Subtotal 6, 230

2. 0 General Monitoring Protocol:- see below for Arch and Paelo

2. 1 Review of applicable biological and cultural resources reports 1, 770

2. Monitoring all ground disturbing activities 0

2. 3 Conduct Daily pre -construction meetings 8, 550

2. 4 Prepare Daily logs including pictures 8, 690
Subtotal 19, 010

3. 0
Crotch Bumble Bee Monitoring - up to 40 hrs.

3. 1 Monitor construction activities 8, 090

3. 2 Ensure compliance with MMRP 0

3. Verify implementation of buffer zones and seasonal work restrictions 0

3. 4 Halt work if CBB or active nest is observed 690
Subtotal 8, 090

4. 0 Vegetation Clearance and Pre- ConstructionNesting Bird

4. 1 Monitor vegetation clearing activities 19, 930

4. 2 Establish Protective buffer and halt work 3, 910
Subtotal 19, 930

5. 0 Monitoring and Inadvertent Discovery - Arch Monitoring 180 days

5. 1 Implement and enforce an Inadvertent Discovery Plan 154, 40

5. 2 Authority to stop work in the immediate discovery area 0

5. 3 Immediately notify the City, the designate Cultural Resources Lead 0

5. 4 Maintain daily logs and assist in preparing incident reports 3, 800 Subtotal 158, 240

6. 0 Fossil Discovery - Paleo Monitoring - 180 days

6. 1 Inspection of excavated soil and bedrock 154, 40

6. 2 Halt excavation in immediate vicinity to evaluate find 0

6. 3 Responsible for in -field salvage, stabilization and proper curation 0

6. 4
Prepare daily monitoring reports and Final Paleontological Mitigation Report
15, 960
Subtotal 170, 40
TOTAL COST 381, 900
ms

UltraSystems No. 251106
215
Aiel
ANNIN
t+:

Sun Lakes Blvd Extension - Environmental Monitoring Services* Table 1. 0 -2 ULTRASYSTEMS STANDARD RATE SCHEDULE - Yr. 2026 PROFESSIONAL STAFF Hourly HOURLY
Principal 210
Director 210
Senior Project Manager 205
Project Manager 200
Senior Principal Engineer 200
Senior Scientist/ Engineer 194
Scientist/ Engineer 189
Staff Scientist/ Engineer 184
Senior Planner 179
Associate Planner 173
Planner/ Envionmental Analyst 168
Senior Biologist II 179
Senior Biologist I 173
Staff Biologist II 168
Staff Biologist I 163
Associate Biologist 158
Cultural Specialist 173
Archaeologist 168
Cultural Monitor 137
Senior GIS Analyst 173
GIS Technician 168
Word Processor 137
Intern 105
FIELD EQUIPMENT Daily Weekly
Excavation Screen 5 21
Field Supplies ( shovels, health and safety, flagging, binoculars, etc.) 15 63 Garmin GPS ( non - Trimble) 5 21
iPad Data Tablet 25 105
Kestrel Anemometer ( or equivalent) 5 21
Photoionization detector ( PID) or equivalent 100 420
Quest SoundPro SP -DL -1-/ 3 Sound Level Meter ( or equivalent) 110 462 RKI GX- 2003 Multi - Gas Meter ( or equivalent) 65 273
Trimble Geo7x GPS Unit with Rangefinder ( or equivalent) 120 588 XRF Analyzer 95 399
Note: Consultant support ( printing, reproduction and other direct expenses) will be billed at a rate of cost plus ten 10) percent. Automobile mileage will be charged at IRS standard rates. Travel time will be billed as indicated in the hourly rate schedule above. Invoices will be submitted monthly for work in progress and at completion of contract obligations and are payable upon receipt.

UltraS} sterns
U1traSystems No. 251106
216
@Sun Lakes Blvd Extension - Environmental Monitoring Services.

Table 1 U- 3,

LABOR COSTS BY TASK
U ltro Sa TASK COST BREAKDOWN • SUN LAKES BOULEVARD EXTENSION - ENVIRONMENTAL MONITORING Wh" Ca" p'"""
Project
Director
Scvlor
Biologist II
Scale
Biologist
SOB
BIWaWtti
Biological
Monitor
NSaetloQl"
Arcluwkg0. ta
PaleomoglM
1Ionl 0014
Senior f15
ant
Word
Pte.,
Total Ve611c Travel
Street
n1Pe6ac
R{ 3"AS
Lnwmkdl
Boo* 041e lay WbOr Category a» 5210 5129 173 6163, 00 MS 5168 595 5173 5037 lours Coal Mlles 10. 70 Hours
Co. ,:. Project M0M5eororlt

1. 10.00111114. 40402 ( WO 1 1 1 0 0 0 0 0 G 3004 0 SG 10 5: 60 to Prr, Brna Nwdng, ( tor) 10 14 1a a a 0 0 n 0 7e 8'+, 670 0 a 0 00170

1.3 Inedcing illumalyl 0 U 0 U a 0 0 0 0 0 60 0 50 m 50 111301707 II II II 0 0 e 0 e 0 31 16.02 0 SO 5. 90 6, 270 20: floe MrcA61004 Prat..

E. 1 10, 123349. 011446. 12140102501 and cWwNrcavmOn' Won 0 4 I 0 0 4 4 0 0 12 81. 169 0 50 10 53. 210

2. 1 4mn$ nrin84nnn8Mlgm+ nA 41006tn5a' rM4- k0 0 0 4 0 d a 4 54 0 541 to Sa 2: 3 lm0nrt 05000m+ mlm+ Mnl nenrogs U 0 0 0 U 0 90 0 0 90 10050 ll 90 50 1500 29 944, 6031141121624 40,, 11n30010, er 0 J 5 0 0 90 0 0 00 51550 0 41 5190 0390 10000701 0 4 0 0 0 4 104 0 192 810. 060 0 50 130 419, 010

3. 0 ketch 0oelble Dee Monitoring

3. 1 114402. 39440,0109034. 21141102 0 0 Q 0 40 0 40 0 0 30 57, 600 700 1490 50 50. 090

3. 1 090 900011, 60 wlt441090 0 4 0 0 0 0 0 0 6 0 ED 0 SO SO f0 11 VerINloolememakm 90190krmnn aiN se, mrxinl unak remirtJmO 0 0 0 0 0 P 0 0 a i0 SO LO Sa

3. 4 hall work ifC0U urutt14cne0l' w344,: I1' CV U U 4 0 0 0 0 0 0 4 169E 0 SO 50 6690 511000001 0 0 4 0 40 0 40 0 0 04 47,00 700 5190 S0 10, 090

40. Ve47md000mrmle and Pre - Construction be400$ ol o

4. 1 l414e0rw, orark. ncla, m:4oto91w 0 04 24 40 4 0 :: A 0 91 516506 0600 51. 410 14 519. x!0

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UltraSystems So. 251106
217
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT
(C01240) FOR SUN LAKE BLVD EXTENSION – CONSTRUCTION

ENVIRONMENTAL MONITORING SERVICES BY AND BETWEEN
CITY OF BANNING AND ULTRASYSTEMS ENVIRONMENTAL, INC.

THIS AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT FOR SERVICES (“Amendment No. 1”) by and between the CITY OF BANNING (“City”) and UltraSystems Environmental Inc., a California Corporation (“Consultant”) is effective as of this day: ______________.

RECITALS
A. City and Consultant entered into that certain Contract dated February 2, 2026, for the purpose of providing Sun Lakes Blvd Extension – Construction Environmental Monitoring Services (“Agreement”) following RFP # 25-122 Sun Lakes Blvd Extension – Construction Environmental Monitoring Service, as approved by City Council Resolution RESO 2026-38.

B. City and Consultant now desire to amend the Agreement to modify the Scope of Services, extend the Term of the Agreement to December 31, 2027, and increase the Contract Sum to Six Hundred Twelve Thousand Six Hundred Seventy Dollars ($612,670.00).

The Parties therefore agree follows:

1. Amended Terms. The Agreement is hereby amended as follows:

1.1 The Scope of Services as set forth in Section 1.1 of and Exhibit A to the Agreement is hereby amended to include the Services set forth in Attachment 1, attached hereto and incorporated herein.

1.2 The maximum compensation for the Services performed pursuant to this Amendment No. 1 shall not exceed Two Hundred Thiry Thousand Seven Hundred Seventy Dollars ($230,770.00) thereby increasing the Contract Sum, as set forth in Section 2.1 of the Agreement, to Six Hundred Twelve Thousand Six Hundred Seventy Dollars ($612,670.00).

1.3 The Term of the Agreement, as set forth in Section 3.4 of the Agreement, is hereby extended through December 31, 2027, unless sooner terminated or extended as provided in the Agreement.

1.4 Exhibit C-1 to the Agreement is hereby amended to read as set forth in Attachment 1, attached hereto and incorporated herein.

2. Miscellaneous Provisions

2.1 Continued Effect of Agreement. Except as amended by this Amendment No. 1, all provisions of the Agreement shall remain unchanged and in full force and Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 5/11/2026
218 899
effect. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 1. In the event of a conflict between the provisions of this Amendment No. 1 and the provisions of the Agreement or Amendment No. 1, the provisions of this Amendment No. 1 shall control.

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 1.

2.3 Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 1 may be signed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURE PAGE FOLLOWS]
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 219 900
The Parties are signing this Amendment No. 1 on the date stated in the introductory clause.

CITY OF BANNING CONSULTANT

Elizabeth Gibbs,
City Manager
NAME:

TITLE:

City Council Approval: _______________ NAME:

TITLE:

ATTEST:

Sandra Calderon
Deputy City Clerk

APPROVED AS TO FORM:

Slovak, Baron, Empey, Murphy & Pinkney
LLP
John O. Pinkney
City Attorney

NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED.

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE President/CEO
Betsy A Lindsay
RESO 2026-38, 2/24/26
220 901
ATTACHMENT “1”
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 221 902
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 222 903
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 223 904
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 224 905
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 225 906
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 226 907
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 227 908
Docusign Envelope ID: C62FED92-FE69-899A-8252-B4A9E82F64CE 228 909
Corporate Office – Orange County Telephone: 949.788.4900 16431 Scientific Way Facsimile: 949.788.4901
Irvine, CA 92618-4355 Website: www.ultrasystems.com
August 3, 2026
Project No: 7366 | CO# 2
Patrick Safari, CIP Manager, Public Works Department VIA EMAIL City of Banning
99 E. Ramsey Street
Banning, CA 92220
E: [email protected]
Subject: Change Order #2
Burrowing Owl (BUOW) Pre-construction Survey Work
Crotch Bumble Bee (CBB) Survey Plan
Dear Patrick:

Change Order #2 includes two individual tasks that were not part of UltraSystems original contact. Those tasks include: (1) BUOW Pre-construction Survey, and (2) the preparation of a CBB Survey Plan, which is required pursuant to the ITP. Presented below are the scope of services for these two tasks.

SCOPE OF WORK
Task 1 – Burrowing Owl (BUOW) Pre-Construction Survey
UltraSystems will conduct protocol-level pre-construction surveys for Burrowing Owl within the Project Area and an appropriate buffer (typically up to 500 feet, consistent with CDFW guidelines). Surveys will be completed by qualified biologists in accordance with current CDFW Staff Report on Burrowing Owl Mitigation and applicable permit conditions.

Work will include a habitat assessment, focused pedestrian surveys to identify occupied burrows and sign (e.g., whitewash, pellets, feathers), and mapping of all burrows and suitable habitat. If owls or active burrows are detected, avoidance measures will be developed, including establishment of no-disturbance buffers and coordination with CDFW as necessary.

A Pre-Construction Survey Report will be prepared summarizing survey methods, results, and recommended avoidance and minimization measures to ensure compliance prior to ground disturbance.

Task 2 – Crotch’s Bumble Bee (CBB) Survey Plan Preparation UltraSystems will prepare a Crotch’s Bumble Bee Pre-Construction Survey Plan (PCSP) in compliance with the requirements of CESA Incidental Take Permit (ITP) No. 2081-2025-079-06. The plan will establish protocol-level survey methods, timing, and effort necessary to determine presence/absence of Bombus crotchii within the Project Area and a 50-foot buffer, and will identify suitable foraging, nesting, and overwintering habitat.

The PCSP will include:
• Survey objectives, regulatory context, and environmental setting 229
Patrick Safari, CIP Manager, Public Works Department
City of Banning
August 3, 2026

• Seasonal timing windows and required survey conditions • Survey methodologies (e.g., visual encounter transects and habitat assessments) • Minimum survey effort and frequency requirements
• Nest detection protocols and buffer requirements
• Avoidance and minimization measures consistent with ITP conditions • Reporting requirements and deliverables to CDFW
The finalized Survey Plan will be submitted to the City and, if required, to CDFW for review and approval prior to implementation.

COSTS
The following table specifies our proposed costs for our proposed work scope.

TABLE 1

ESTIMATED FEES
Tasks Description Cost
1 Burrowing Owl (BUOW) Pre-Construction Survey $9,590
2 Crotch’s Bumble Bee (CBB) Survey Plan Preparation $1,550 TOTAL $11,140
ULTRASYSTEMS’ PROJECT MANAGER FOR THIS CONTRACT
Should you have any questions relating to this Change Order #2, please contact me via my cellphone or email.

Sincerely,
Betsy A. Lindsay
President/CEO
230
AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT
(C01240) FOR SUN LAKE BOULEVARD EXTENSION –

CONSTRUCTION ENVIRONMENTAL MONITORING SERVICES BY

AND BETWEEN CITY OF BANNING AND ULTRASYSTEMS
ENVIRONMENTAL, INC.

THIS AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES
AGREEMENT FOR SERVICES (“Amendment No. 2”) by and between the CITY OF BANNING (“City”) and UltraSystems Environmental Inc., a California Corporation (“Consultant”) is effective as of this day: ______________.

RECITALS
A. City and Consultant entered into that certain Contract dated February 2, 2026, for the purpose of providing Sun Lakes Blvd Extension – Construction Environmental Monitoring Services (“Agreement”) following RFP# 25-122 Sun Lakes Blvd Extension – Construction Environmental Monitoring Service, as approved by City Council Resolution 2026-18.

B. City and Consultant have entered into an Amendment No. 1 to the Agreement dated May 11, 2026, to modify the Scope of Services, extend the Term of the Agreement to December 31, 2027, and increase the Contract Sum to Six Hundred Twelve Thousand Six Hundred Seventy Dollars ($612,670.00), as approved by City Council Resolution 2026-38.

C. City and Consultant now desire to amend the Agreement to modify the Scope of Services and increase the Contract Sum to Six Hundred Twenty-Three Thousand Eight Hundred Ten Dollars and Zero Cents ($623,810.00).

The Parties therefore agree as follows:

1. Amended Terms. The Agreement is hereby amended as follows:

1.1 The Scope of Services as set forth in Section 1.1 of and Exhibit A to the Agreement is hereby amended to include the Services set forth in Attachment 2, attached hereto and incorporated herein.

1.2 The maximum compensation for the Services performed pursuant to this Amendment No. 2 shall not exceed Eleven Thousand One Hundred Forty Dollars and Zero Cents ($11,140.00), thereby increasing the Contract Sum, as 231
set forth in Section 2.1 of the Agreement, to Six Hundred Twenty-Three Thousand Eight Hundred Ten Dollars and Zero Cents ($623,810.00).

1.3 Exhibit C-1 to the Agreement is hereby amended to read as set forth in Attachment 2, attached hereto and incorporated herein.

2. Miscellaneous Provisions

2.1 Continued Effect of Agreement. Except as amended by this Amendment No. 2, all provisions of the Agreement , as amended by Amendment No. 1, remain unchanged and in full force and effect. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment Nos. 1 through 2. In the event of a conflict between the provisions of this Amendment No. 2 and the provisions of the Agreement or Amendments Nos. 1 through 2, the provisions of this Amendment No. 2 shall control.

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 2.

2.3 Authority. The persons executing this Amendment No. 2 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of this Amendment No. 2, and (iv) entering into this Amendment No. 2 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 2 may be signed in any number of counterparts, each of which will be original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto hereby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURE PAGE FOLLOWS]
232
The Parties are signing this Amendment No. 2 on the date stated in the introductory clause.

CITY OF BANNING CONSULTANT
Elizabeth Gibbs,
City Manager
NAME:

TITLE:

City Council Approval: _______________ NAME:

TITLE:

ATTEST:

Sandra Calderon
Deputy City Clerk
APPROVED AS TO FORM:

Slovak, Baron, Empey, Murphy & Pinkney
LLP
John O. Pinkney
City Attorney
NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED.

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
233
ATTACHMENT “2”
234
235

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Holly Stuart, Public Works Program Manager Arturo Vela, Director of Public Works
MEETING DATE: October 13, 2026
SUBJECT: Consideration of Resolution 2026-135 Amending Resolution 2026-66 to Add AutoZone to the Approved Vendor List for Automobile and Equipment Parts for Five-Year Period for an Annual Aggregate of $80,000 per Fiscal Year (FY 2026-FY2030)
STAFF RECOMMENDATION:

Adopt Resolution 2026-135
BACKGROUND:

On April 28, 2026, the City Council adopted Resolution 2026-66 authorizing the use of cooperative purchasing agreements to procure automobile and equipment parts for a five-year term (FY 2026 - FY 2030), with an annual aggregate amount not to exceed $80,000 per fiscal year. The resolution established an approved vendor list utilizing cooperative purchasing agreements to provide access to competitively sourced contracts while allowing fleet staff to select vendors based on pricing, availability, lead time, and operational requirements.

The approved vendor list, per Resolution 2026-66, currently includes the following vendors:
• Napa and O’Reilly Auto Parts: Sourcewell Master Agreement #100124 (aftermarket vehicle parts and supplies)
• Parts Authority: Sourcewell Master Agreement #080124 (OEM vehicle parts and supplies) Staff now recommends adding AutoZone as an additional approved source.

AutoZone is available through a competitively solicited Sourcewell cooperative contract (Contract #100124-AUZ). Adding AutoZone to the established vendor list will provide an additional purchasing option and improve the City’s ability to obtain needed parts based on price, availability, lead time, and specific part requirements without conducting a separate solicitation process.

The proposed amendment only adds AutoZone to the approved vendor list. It does not increase the previously authorized annual aggregate amount of $80,000, change the five-year term, or otherwise modify the purchasing authority established by Resolution 2026-66. Use of AutoZone will remain subject to the availability and terms of the Sourcewell contract.

JUSTIFICATION:

Adding AutoZone will expand the City’s access to competitively procured automotive parts and provide additional flexibility when parts are unavailable, delayed, or more cost effective from another approved 236
vendor. This will support timely vehicle and equipment repairs while maintaining the procurement controls and annual spending limit previously approved by the City Council.

FISCAL IMPACT:

No additional fiscal impact is associated with adding AutoZone to the approved vendor list. Purchases will continue to be funded from the Fleet Division operational budget, Account No. 702-3800-480.38-52 (Auto Parts), and total expenditures across all approved vendors will remain within the annual aggregate amount not to exceed $80,000.

ATTACHMENTS:

1. Reso_2026-135.docx

2. Resolution 2026-66.pdf

3. AutoZone_Draft_Master Agreement_10.13.26.pdf

4. AutoZone Contract 100124.pdf
237
Resolution 2026-135

RESOLUTION 2026-135

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, AMENDING RESOLUTION 2026-66 TO ADD AUTOZONE TO THE APPROVED VENDOR LIST

FOR THE PROCUREMENT OF AUTOMOBILE AND EQUIPMENT PARTS
WHEREAS, on April 28, 2026, the City Council adopted Resolution 2026-66 authorizing the use of cooperative purchasing agreements for the procurement of automobile and equipment parts for a five-year term (FY 2026 - FY 2030), with an annual aggregate amount not to exceed $80,000 per fiscal year; and
WHEREAS, Resolution 2026-66 established an approved vendor list consisting of Napa and O’Reilly Auto Parts through Sourcewell Master Agreement #100124 and Parts Authority through Sourcewell Master Agreement #080124; and
WHEREAS, staff identified AutoZone, available through Sourcewell Contract #100124- AUZ for automotive replacement parts, as an additional competitively procured source appropriate for City use; and
WHEREAS, adding AutoZone to the approved vendor list will provide additional flexibility to obtain parts based on price, availability, lead time and specific operational requirements; and WHEREAS, the addition of AutoZone does not increase the annual aggregate amount authorized by Resolution 2026-66, change the approved five-year term or otherwise expand the purchasing authority previously approved by the City Council; and WHEREAS, the City Council desires to amend Resolution 2026-66 solely to add AutoZone to the approved vendor list, with all other provisions remaining in effect; WHEREAS, utilizing these cooperative agreements will facilitate the City’s ability to obtain parts in alignment with pricing, availability, lead-time considerations and overall operations requirements while adhering to established annual budget limits; and WHEREAS, establishment of a vendor list and authorization of blanket purchase orders for the five-year term (FY 2026 - FY 2030) will provide operational continuity, support timely fleet maintenance and advance effective financial and procurement management; and WHEREAS, allocations for each vendor may be adjusted to be increased or decreased as deemed necessary, as long as, the aggregate dollar amount does not exceed $80,000 annually.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. Resolution 2026-66 is hereby amended to add AutoZone to the approved vendor list for the procurement of automobile and equipment parts. The approved vendor list shall include the following:
 Napa and O’Reilly Auto Parts: Sourcewell Master Agreement #100124 (aftermarket vehicle parts and supplies)
 Parts Authority: Sourcewell Master Agreement #080124 (OEM vehicle parts and supplies) 238
Resolution 2026-135

 AutoZone: Sourcewell Contract #100124-AUZ (automotive replacement parts) SECTION 2. The addition of AutoZone does not increase the annual aggregate amount authorized under Resolution 2026-66. Total expenditures among all approved vendors shall remain within the annual aggregate amount not to exceed $80,000 per fiscal year, and the fiveyear term (FY 2026 - FY 2030) remains unchanged.

SECTION 3. The City Manager, or designee, is authorized to execute any necessary documents to administer the AutoZone cooperative contract and to issue or renew blanket purchase orders consistent with the authority and limitations established under this resolution.

SECTION 4. Except as expressly amended by this resolution, all provisions of Resolution 2026- 66 shall remain in full force and effect.

SECTION 5. The City Clerk shall certify the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 13th day of October 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
APPROVED AS TO FORM:

Phaedra Norton, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
239
Resolution 2026-135

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-135, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 13th day of October 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
240
RESOLUTION 2026-66

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA,

AUTHORIZING THE USE OF COOPERATIVE PURCHASING AGREEMENTS FOR THE PROCUREMENT OF AUTOMOBILE AND EQUIPMENT PARTS FOR A FIVEYEAR TERM ( FY 2026 - FY 2030) AND AUTHORIZING RELATED PURCHASING ACTIONS FOR AN ANNUAL AGGREGATE OF $80,000 PER FISCAL YEAR WHEREAS, the City of Banning Public Works Department, Fleet Division, maintains and repairs more than 200 vehicles and equipment units necessary for delivery of essential City services; and
WHEREAS, annual expenditures for automobile and equipment parts are expected to remain significant throughout the upcoming five-year term, with annual expenses potentially reaching an aggregate of $80,000 per fiscal year; and WHEREAS, adequate funding for these expenditures is included annually in the Fleet Division operation budget; and
WHEREAS, staff determined that cooperative purchasing agreements as allowed under the City's purchasing policies, offer the most practical means of accessing competitively sourced contracts from government procurement alliance and promote cost efficient and streamlined purchasing; and
WHEREAS, staff determined the following Sourcewell master agreements are active and appropriate for use:

Napa and O'Reilly Auto Parts: Sourcewell Master Agreement # 100124 aftermarket vehicle parts and supplies)
Parts Authority: Sourcewell Master Agreement #080124 ( OEM vehicle parts and supplies)
WHEREAS, utilizing these cooperative agreements will facilitate the City's ability to obtain parts in alignment with pricing, availability, lead-time considerations and overall operations requirements while adhering to established annual budget limts; and WHEREAS, establishment of a vendor list and authorization of blanket purchase orders for the five-year term ( FY 2026 - FY 2030) will provide operational continuity, support timely fleet maintenance and advance effective financial and procurement management; and
WHEREAS, allocations for each vendor may be adjusted to be increased or decreased as deemed necessary, as long as, the aggregate dollar amount does not exceed $ 80,000 annually.

Resolution 2026- 66

241
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council hereby adopts Resolution 2026-66 authorizing the use of the following cooperative purchasing agreement for the procurement of automobile and equipment parts for a five-year term (FY 2026 - FY2030).

Napa and O'Reilly Auto Parts: Sourcewell Master Agreement # 100124 aftermarket vehicle parts and supplies)
Parts Authority: Sourcewell Master Agreement # 080124 ( OEM vehicle parts and supplies)
SECTION 2. The City Council hereby authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution.

SECTION 3. The City Manager, or designee, is hereby authorized to execute the agreements and any necessary documents to administer the agreements on behalf of the City including the issuance and renewal of blanket purchase orders for each fiscal year within the five-year term, with an annual aggregate amount not to exceed $ 80,000 contingent on satisfactory vendor performance.

SECTION 4. The City Clerk shall certify the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 28th day of April 2026.

ATTEST:
wtc ~
Sandra Calderon, Deputy City Clerk
City of Banning
Resolution 2026- 66

Rhard oyce, Mayor
City of Banning
242
APPROVED AS TO FORM:

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy
LLP
Resolution 2026- 66

243
CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026- 66, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 28th day of April 2026 by the following vote, to wit:

AYES: Barrington, Flynn, Miller, Royce, Wallace
NOES: None
ABSENT: None
ABSTAIN: None
Resolution 2026-66

Sandra Calderon, Deputy City Clerk
City of Banning, California
244

MASTER AGREEMENT FOR PURCHASE OF GOODS

INCLUDING SOURCEWELL COOPERATIVE PURCHASES)

BY INDEPENDENT CONTRACTOR

THIS MASTER AGREEMENT FOR PURCHASE OF GOODS ( INCLUDING SOURCEWELL COOPERATIVE PURCHASES) BY INDEPENDENT CONTRACTOR (" Agreement") is made and effective as of the ________ , by and between the CITY OF BANNING, a California municipal corporation (" City") whose address is 99 East Ramsey Street, Banning, California 92220, and O'REILLY AUTO ENTERPRISES, LLC, a Delaware limited liability corporation whose address is 233 South Patterson Ave., Springfield, MO 65802 (" Contractor").

City and Contractor are sometimes hereinafter individually referred to as " party" and hereinafter collectively referred to as the " parties."

RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:

A. City desires to procure certain vehicle parts, supplies, and related incidental services ( e.g., delivery, order support) through a cooperative purchasing program administered by Sourcew_ ell, a Minnesota service cooperative.

B. Contractor is a vendor under a cooperative purchasing master agreement with Sourcewell, a governmental cooperative purchasing organization, pursuant to MASTER AGREEMENT # 100124 CATEGORY: Aftermarket Vehicle Parts & Supplies SUPPLIER:

O' Reilly Auto Enterprises, LLC (" Sourcewell Agreement"), which is attached hereto as Exhibit A" and incorporated herein by this reference subject to Section 4. The parties intend that purchases of goods under this Agreement may be made pursuant to and in reliance upon the Sourcewell Agreement and applicable law.

C. This Agreement is intended to function as a master agreement governing ongoing purchase of goods, with specific transactions implemented through purchase orders, task orders, or similar transaction documents.

D. Contractor represents it possesses the necessary skills, licenses, certifications, qualifications, personnel, and equipment to perform its obligations under this Agreement. 245

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, City and Contractor agree as follows:

1. Purpose and UCC Applicability.

1.01 This Agreement is a master purchasing/ framework agreement for the acquisition of goods ( as defined below) and any incidental services associated with ordering, delivery, and support.

1.02 Uniform Commercial Code ( UCC) Applicability. To the extent a transaction under this Agreement is predominantly for the sale of movable items, the transaction is governed by Division 2 of the California Uniform Commercial Code ( sales of goods), as adopted in California.

2. Definitions.

2.01 Sourcewell means Sourcewell, a Minnesota service cooperative offering a Cooperative Purchasing Program.

2.02 Goods means the included solutions that constitute goods ( including Aftermarket Vehicle Parts and Supplies) offered under the Sourcewell Agreement and purchased by City under a Transaction Document.

2.03 Transaction Document( s) means a purchase order, release, task/ order form, participating addendum, or other written document used by City and Contractor to document a specific purchase under this Agreement.

All defined terms not defined within this Agreement shall have the same meaning as defined in the Sourcewell Agreement.

3. No Third- Party Obligations.

3.01 Sourcewell not a party. Sourcewell is not a party to this Agreement, and this Agreement does not create any partnership, joint venture, or agency relationship between City and Sourcewe 11.

3.02 City as Participating Entity. City' s authority to use the Sourcewell program is determined by California law.
2 246

3.03 Contractor Obligations. City is not responsible for Contractor' s reporting or fee remittance obligations owed to Sourcewell under the Sourcewell Agreement, except to the extent City expressly agrees in a Transaction Document to provide information reasonably necessary for Contractor' s reporting.

4. Incorporation of Sourcewell Agreement. The parties intend to incorporate by reference into this Agreement the Sourcewell Agreement solely to the extent necessary to ( i) identify the cooperative contract vehicle, ( ii) apply Sourcewell pricing controls and program requirements to City' s purchases, and ( iii) apply any Sourcewell terms that, by their nature, govern transactions between Contractor and a Participating Entity.

5. Order of Precedence; Conflicts.

5.01 Order of Precedence. In the event of any conflict among documents applicable to a City purchase, the following order of precedence applies:

1. This Agreement;
ii. A Transaction Document signed/ issued by City and accepted by Contractor that expressly states it controls in the event of conflict; iii. The Sourcewell Agreement.

5.02 Negotiation Permitted. This Agreement is in compliance with Article 3, Section 6 of the Sourcewell Agreement which allows additional terms and conditions to be negotiated by the parties.

6. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall automatically terminate after the expiration of the Sourcewell Agreement. City may terminate this Agreement with or without cause by giving twenty 20) days' written notice to Contractor.

Tennination shall not affect ( i) City' s obligation to pay undisputed amounts for Goods accepted prior to the effective date of termination, or ( ii) provisions that by their nature survive, including indemnification, insurance ( to the extent tied to prior occurrences), audit/ records retention, and payment obligations. Upon termination, Contractor shall deliver any Goods paid for and any deliverables required under applicable Transaction Documents. 3 247

7. Transaction Documents; Ordering; Payment.

7.01 Transaction- Based Contracting. Each purchase of goods or incidental services may be implemented through a Transaction Document. Each Transaction Document shall reference: ( i) this Agreement; and ( ii) the Sourcewell Agreement number.

7.02 No Minimum Commitment. This Agreement is for an indefinite quantity of goods and incidental services; City makes no guarantee of any minimum purchase volume.

7.03 Separate Transactions. Each Transaction Document constitutes a separate contract for performance, but is governed by this Agreement.

7.04 Invoicing. Contractor shall invoice City in accordance with the applicable Transaction Document and shall provide itemized documentation reasonably sufficient for City to verify pricing and quantities. City is not obligated to pay any invoice submitted more than sixty 60) days after the due date of such invoice, unless City waives this requirement in writing. City shall pay such invoice within thirty ( 30) days of its receipt and acceptance.

7.05 Disputed Charges. If City disputes any portion of an invoice, City shall pay the undisputed portion within thirty ( 30) days of receipt and provide written notice of the disputed portion. City shall not be obligated to pay for Goods or incidental services not authorized in a Transaction Document. Any changes to scope, pricing, or quantities must be documented in a written amendment or revised Transaction Document.

7.06 Not-to-Exceed Pricing. Contractor shall not exceed the prices listed in the cun- ent pricing list on file with Sourcewell when offering Included Solutions to City, unless City approves different pricing in a Transaction Document.

7.07 Pricing Adjustments. City may request adjustments to pricing directly from Contractor during negotiation and execution of a transaction.

7.08 Open Market/ Non- Contracted Items. If City requests items outside the Included Solutions, Contractor may offer such items under its open market process as described in Contractor' s Sourcewell proposal, and any such purchase must be expressly authorized in a Transaction Document.

7.09 Product and Price Changes under Sourcewell. To the extent City purchases rely on Sourcewell pricing lists, Contractor' s changes, additions, deletions, or price changes to Included Solutions must be processed through Sourcewell' s written change request and incorporated amendment process.
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7 .1 0 Contractor shall not be compensated nor reimbursed for any expenses incurred in excess of those authorized unless approved in advance by the City, in writing.

7.11 Time is of the essence in the performance of this Agreement.

8. Delivery; Title; Risk of Loss; Inspection; Acceptance/ Rejection.

8.01 Delivery. Delivery terms ( including shipping method, delivery location, and any Incoterms/ FOB terms) shall be stated in the applicable Transaction Document.

8.02 Title. Unless otherwise explicitly agreed in a Transaction Document, title passes in the manner and on the conditions explicitly agreed by the parties, and otherwise at the time and place the seller completes its performance with reference to physical delivery.

8.03 Risk of Loss. Unless otherwise agreed in a Transaction Document, risk of loss allocation shall follow the default rules applicable to the agreed delivery structure ( including shipment terms such as F.O.B. where used).

8.04 Inspection; Acceptance; Rejection. City' s inspection rights, timelines, and acceptance/ rejection procedures shall be as stated in the Transaction Document, and if not stated, City retains commercially reasonable inspection and rejection rights consistent with the UCC.

8.05 Nonconforming Goods; Remedies. Remedies for nonconforming Goods including replacement, return, exchange procedures, and associated costs) shall be as stated in the Transaction Document, and if not stated, the parties' remedies are those available under the UCC.

9. Warranties.

9.01 Sourcewell Express Warranty Preserved. Contractor warrants that Included Solutions furnished under the Sourcewell Agreement are free from liens and encumbrances, free from defects in design, materials, and workmanship, and suitable for and will perform in accordance with ordinary use for which intended.

9.02 Implied Warranties. Unless expressly modified in a Transaction Document, implied warranties that arise by operation of law in a sale of goods ( including merchantability where applicable) are not disclaimed by this Agreement. 5 249

9.03 Disclaimer/ Modification Requirement. Any disclaimer or modification of warranties proposed by Contractor must be conspicuous and must not be inconsistent with any express warranty applicable to the transaction.

9.04 Warranty Claims Process. Any notice requirements, return authorizations, and replacement/ credit procedures shall be stated in the Transaction Document or otherwise mutually agreed in writing.

10. Statute of Limitations for Sale of Goods.

10.01 Limitations Period. Any action for breach of a contract for sale must be commenced within four ( 4) years after the cause of action has accrued, subject to any enforceable written reduction ( not less than one year) agreed by the parties in a Transaction Document.

10.02 Accrual. A cause of action for breach of warranty generally accrues when tender of delivery is made, except where a warranty explicitly extends to future performance and discovery must await such performance, in which case accrual is when the breach is or should have been discovered.

11. Insurance. Contractor hereby agrees to be solely responsible for the health and safety of its employees and agents in performing this Agreement and shall comply with all laws applicable to worker safety including but not limited to Cal- OSHA. Therefore, throughout the duration of this Agreement, Contractor hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below. Attached hereto as Exhibit " B" are copies of Certificates oflnsurance and endorsements as required by Section 12.02. If existing coverage does not meet the requirements set forth herein, Contractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor shall provide the following types and amounts of insurance:

11.01 Commercial general liability insurance in an amount of not less than 1,000, 000 per occurrence and $ 2,000, 000 in the aggregate; Contractor agrees to have its insurer endorse the general liability coverage required herein to include as additional insureds City, its officials, employees and agents. Contractor also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 11.

11.02 Business Auto Coverage in an amount no less than $ 1 million per accident.

If Contractor or Contractor' s employees will use personal autos in performance of this Agreement, Contractor shall provide evidence of personal auto liability coverage for each such person.

11.03 Workers' Compensation insurance for any of Contractor' s employees.

Contractor will have a state- approved policy form providing statutory benefits as required by 6 250
California law. The provisions of any Workers' Compensation insurance will not limit the obligations of Contractor under this Agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.

11.04 Optional Insurance Coverage. Choose and check one: Required _ / Not Required _ X _; Errors and omissions insurance in a minimum amount of $2 million per occurrence to cover any negligent acts or omissions committed by Contractor, its employees and/ or agents in the performance of this Agreement.

12. General Conditions pertaining to Insurance Coverage.

12.01 No liability insurance coverage provided shall prohibit Contractor from waiving the right of subrogation prior to a loss. Contractor waives all rights of subrogation against City regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do likewise.

12.02 Prior to beginning this Agreement, Contractor shall furnish City with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.

12.03 All required policies shall be issued by a highly rated insurer with a minimumA. M. Best rating of" A:VII". The insurer( s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty 30) days' prior written notice has been given to City.

12.04 Self- insurance does not comply with these insurance specifications.

Contractor acknowledges and agrees that all insurance coverage required to be provided by Contractor or any subcontractor, shall apply first and on a primary, non- contributing basis in relation to any other insurance, indemnity or self- insurance available to City.

12.05 All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Contractor shall not make any reductions in scope of coverage ( e.g. elimination of contractual liability or reduction of discovery period) that may affect City' s protection without City' s prior written consent.

12.06 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor or arising out of this Agreement. City assumes no obligation or liability by such 7 251
notice but has the right ( but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

12.07 The coverage shall contain no special limitations on the scope of protection afforded to City, its directors, officers, employees, or authorized volunteers. If the Contractor maintains broader coverage and/ or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/ or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

13. Indemnification.

13.01 Indemnity. Contractor and City agree that City, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs or any other costs arising out of or in any way related to the performance of this Agreement by Contractor or any subcontractor or agent of either as set forth herein. Accordingly, the provisions of this indemnity are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to City. Contractor acknowledges that City would not enter into this Agreement in the absence of the commitment of Contractor to defend, indemnify, and protect City as set forth herein.
a. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City, its employees, agents and officials, from and against any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, injuries, expenses, damages or costs of any kind, whether actual, alleged or threatened, actual attorneys' fees incurred by City, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of, or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement.

Contractor' s obligation to defend, indemnify, and hold harmless shall include any and all claims, suits, and proceedings in which Contractor ( and/ or Contractor' s agents and/ or employees) is alleged to be an employee of City. All obligations under this provision are to be paid by Contractor as they are incurred by City.
b. Without affecting the rights of City under any provision of this Agreement or this Section, Contractor shall not be required to indemnify and hold harmless City as set forth above for liability attributable solely to the fault of City, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction. 8 252

14. Associates and Subcontractors. Contractor may, at Contractor' s sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as Contractor deems necessary to perform this Agreement; provided, however, that Contractor shall not subcontract any of the services under this Agreement without the prior written consent of City. Contractor shall ensure that all subcontractors comply with the requirements of this Agreement, including, but not limited to, insurance, indemnification, and licensing requirements.

15. Contractor Obligations.

15.01 Contractor is solely responsible for all taxes, withholdings, and similar obligations arising from compensation under this Agreement and shall indemnify City for failure to comply.

15.02 Contractor represents it holds all licenses required to sell and deliver the Goods and perform any incidental services and shall maintain such licenses throughout the term.

15.03 Contractor shall be solely responsible for obtaining Employment Eligibility Verification information from Contractor' s employees, in compliance with the Immigration Reform and_ Control Act of I986, Pub. L. 99- 603 ( 8 U .S.C. 1324a), and shall ensure that Contractor' s employees are eligible to work in the United States.

15.04 Contractor shall comply with all applicable federal, state, and local laws applicable to the manufacture, sale, delivery, and any incidental services related to the Goods.

15.05 To the extent Contractor provides installation or repair services, such services shall be performed in a workmanlike manner consistent with industry standards.

16. Status of Contractor.

16.0 I Contractor is and shall at all times remain an independent contractor, and not an officer, employee, partner, or agent of City. Contractor shall control the manner and means of performing its obligations under this Agreement, subject to the requirements of this Agreement and any applicable Transaction Document.

16.02 Neither Contractor nor any of its employees, agents, subcontractors, or representatives is entitled to any salary, wages, or other rights or benefits afforded to City' s employees, including disability insurance, unemployment insurance, workers' compensation from City, retirement benefits, CalPERS benefits, medical insurance, sick leave, vacation, or any other 9 253
employment- related benefit. Contractor is solely responsible for all compensation, payroll taxes, withholdings, insurance, permits, licenses, and other statutory or contractual obligations relating to its personnel.

16.03 Contractor represents and warrants that: ( a) it is duly organized, validly existing, and in good standing under the laws of its state of formation, to the extent applicable; ( b) it has all necessary rights, power, and authority to enter into and perform this Agreement and any applicable Transaction Document; and ( c) the individual signing this Agreement on behalf of Contractor has full legal authority to bind Contractor to this Agreement.

17. Audit.

17.01 Contractor shall retain and maintain, for a period not less than four years following termination of this Agreement, all time records, accounting records and vouchers and all other records with respect to all matters concerning this Agreement, compensation paid and expenses reimbursed. At any time during normal business hours and no more than twice per contract year, Contractor shall make available to City' s agents for examination all of such records and shall permit City' s agents to audit, examine and reproduce such records. 17 .02 Contractor acknowledges that the City is a California municipal corporation and is subject to the California Public Records Act, Government Code § 7920. 000 et seq.

CPRA"), and other applicable laws requiring public access to records.

18. Miscellaneous Provisions.

18.01 This Agreement, together with all exhibits and any applicable Transaction Documents, constitutes the entire agreement between the patties with respect to the purchase and sale of Goods and any incidental services and supersedes all prior or contemporaneous agreements, negotiations, representations, or understandings, whether oral or written. This Agreement may be amended only by a written document signed by authorized representatives of both parties.

Notwithstanding the foregoing, individual transactions may be supplemented or modified through a Transaction Document in accordance with Section 7 of this Agreement.

18.02 Contractor shall not assign, delegate, or otherwise transfer this Agreement, or any interest herein, without the prior written consent of City, which shall not be unreasonably withheld. Any attempted assignment without such consent shall be void. No assignment shall relieve Contractor of any obligation under this Agreement unless expressly stated in a written consent by City.
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18.03 Contractor shall timely file FPPC Form 700 Conflict of Interest Statements with City ifrequired by California law and/ or the City' s conflict of interest policy.

18.04 If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees and costs, in addition to any other relief to which that party may be entitled.

18.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside County, California.

18.06 Contractor represents that it has no present interest, and agrees not to acquire any interest, direct or indirect, that would conflict in any manner with its performance under this Agreement. Contractor shall not employ any person having such a conflict.

18.07 Contractor has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest ofpublic officers and employees. Contractor agrees that they are unaware of any financial or economic interest of any public of:(icer or employee of the City relating to this Agreement. It is fiuiher understood and agreed that if such a financial interest does exist at the inception of this Agreement, the City may immediately terminate this Agreement by giving notice thereof. Contractor shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.

I8.08 Improper Consideration. Contractor shal1 not offer ( either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, incidental services, the provision of travel or entetiainment, or any items of value to any officer, employee or agent ofthe City in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by City. The City, by notice, may immediately terminate this Agreement ifit determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the City with respect to the proposal and award process of this Agreement or any City contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any City contract has been awarded. Contractor shall immediately repoti any attempt by any City officer, employee or agent to solicit ( either directly or through an intermediary) improper consideration from Contractor.

18.09 Severability. Ifany portion, section, sentence, provision or paragraph of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent 11 255
jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.

18. l O Prevailing Wages. To the extent applicable to any installation, delivery, or other services provided under a Transaction Document, Contractor shall comply with all prevailing wage laws, including applicable provisions of the California Labor Code. Contractor shall be solely responsible for compliance and shall indemnify, defend, and hold harmless City for any failure to comply.

18.11 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry.

18.12 Waiver. Waiver by any party to this Agreement of any te1m, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant.

Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any Goods by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non- defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

18.13 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

18.14 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purpose of this Agreement.

18.15 Interpretation. The terms of this Agreement shall be construed 111 accordance with the meaning of the language used and shall not be construed for or against either 12 256
party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

18.16 Force Majeure. Neither party shall be deemed in default of this Agreement to the extent that performance of its obligations is delayed or prevented by causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, riots, fires, floods, epidemics, pandemics, earthquakes, strikes, labor disputes, governmental orders, or failure of utilities. The affected party shall promptly notify the other party in writing of the occurrence of such event and shall use reasonable efforts to resume performance as soon as practicable. Force majeure shall not excuse the obligation to make payments when due. In no event shall force majeure entitle Contractor to additional compensation, but only to a reasonable extension of time.

18.17 Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the performance of the other.

18.18 The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. The parties expressly adopt and confirm each electronic signature made by a party to this Agreement, regardless of whether delivered in person, by mail, courier, facsimile, email, or in portable document format ( PDF), as if the same were manually signed and delivered in person. Each party agrees not to assert that any electronic signature is inadequate to bind such party to the same extent as if signed manually and delivered in person.

18.19 The provisions of this Agreement that by their nature are intended to survive the expiration or termination of this Agreement shall survive such expiration or termination.

Without limiting the foregoing, the provisions relating to indemnification, ownership of documents and intellectual property, audit and records retention, insurance obligations, confidentiality, and payment obligations shall survive the termination or expiration of this Agreement.

18.20 Notice. Any notice, demand, request, consent, approval, or other communication required or permitted to be given under this Agreement (" Notice") shall be in writing and shall be deemed to have been duly given if delivered personally, sent by nationally recognized overnight courier, sent by certified or registered mail ( return receipt requested), or sent by electronic mail, addressed as follows:
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To City:

City of Banning
Attn: City Manager
99 East Ramsey Street
Banning, California 92220
Email: ---------
To Contractor:

O'Reilly Auto Enterprises, LLC
ATTN: Wes Wise
233 S. Patterson Ave.

Springfield, MO 65802
Email: CoOp@oreillyauto. com
Notices shall be deemed received as follows: ( i) on the date of delivery if delivered personally; ( ii) one ( 1) business day after deposit with a nationally recognized overnight courier; iii) three ( 3) business days after deposit in the United States mail, postage prepaid; or (iv) on the date transmitted if sent by electronic mail during normal business hours of the receiving party, or on the next business day if sent after normal business hours. Either party may change its address for Notice by providing written Notice of such change to the other party in accordance with this Section.

18.21 This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which counterparts taken together shall constitute one and the same instrument for all purposes of this Agreement.

18.22 The recitals set forth in the preamble of this Agreement are hereby incorporated into and made a substantive part of this Agreement as if fully set forth herein.

SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above written.

CITY:

CITY OF BANNING
By: ----------
Print
Name: --------
Date: ---------
ATTEST:

By: ---------
Date: ----
APPROVED AS TO FORM:

By: ________ _
John 0. Pinkney, City Attorney
Date: ----
15 CONTRACTOR:

O'REILLY AUTO ENTERPRISES, LLC
By: _________ _
Print
Name:

Date:
259
EXHIBIT "A"
MASTER AGREEMENT #100124 CATEGORY: Aftermarket Vehicle Parts and Supplies SUPPLIER: O'Reilly Auto Enterprises, LLC
ATTACHED BELOW]
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Docusign Envelope ID: FF6432CA- 4544- 408B- 9EA5- 8471244EEB86 Sourcewell
MASTER AGREEMENT # 100124
CATEGORY: Aftermarket Vehicle Parts and Supplies
SUPPLIER: O'Reilly Auto Enterprises, LLC
100124- ORA
This Master Agreement ( Agreement) is between Sourcewell, a Minnesota service cooperative located at 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 ( Sourcewell) and O'Reilly Auto Enterprises, LLC, 233 South Patterson Ave., Springfield, MO 65802 ( Supplier).

Sourcewell is a local government and service cooperative created under the laws of the State of Minnesota ( Minnesota Statutes Section 123A. 21) offering a Cooperative Purchasing Program to eligible participating government entities.

Under this Master Agreement entered with Sourcewell, Supplier will provide Included Solutions to Participating Entities through Sourcewell' s Cooperative Purchasing Program.

Article 1:

General Terms
The General Terms in this Article 1 control the operation of this Master Agreement between Sourcewell and Supplier and apply to all transactions entered by Supplier and Participating Entities. Subsequent Articles to this Master Agreement control the rights and obligations directly between Sourcewell and Supplier ( Article 2), and between Supplier and Participating Entity ( Article 3), respectively. These Article 1 General Terms control over any conflicting terms. Where this Master Agreement is silent on any subject, Participating Entity and Supplier retain the ability to negotiate mutually acceptable terms. 1) Purpose. Pursuant to Minnesota law, the Sourcewell Board of Directors has authorized a Cooperative Purchasing Program designed to provide Participating Entities with access to competitively awarded cooperative purchasing agreements. To facilitate the Program, Sourcewell has awarded Supplier this cooperative purchasing Master Agreement following a competitive procurement process intended to meet compliance standards in accordance with Minnesota law and the requirements contained herein.
2) Intent. The intent of this Master Agreement is to define the roles of Sourcewell, Supplier, and Participating Entity as it relates to Sourcewell' s Cooperative Purchasing Program. 3) Participating Entity Access. Sourcewell' s Cooperative Purchasing Program Master Agreements are available to eligible public agencies ( Participating Entities). A Participating Entity' s authority to access Sourcewell' s Cooperative Purchasing Program is determined through the laws of its respective jurisdiction.
4) Supplier Access. The Included Solutions offered under this Agreement may be made available to any Participating Entity. Supplier understands that a Participating Entity' s use of this Agreement is at the Participating Entity' s sole convenience. Supplier will educate its sales and service forces about Sourcewell eligibility requirements and required documentation. Supplier will be responsible for ensuring sales are with Participating Entities.
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5) Term. This Agreement is effective upon the date of the final signature below. The term of this Agreement is four ( 4) years from the effective date. The Agreement expires at 11: 59 P.M. Central Time on January 10, 2029, unless it is cancelled or extended as defined in this Agreement. a) Extensions. Sourcewell and Supplier may agree to up to three ( 3) additional one- year extensions beyond the original four- year term. The total possible length of this Agreement will be seven ( 7) years from the effective date.
b) Exceptional Circumstances. Sourcewell retains the right to consider additional extensions as required under exceptional circumstances.
6) Survival of Terms. Notwithstanding the termination of this Agreement, the obligations of this Agreement will continue through the performance period of any transaction entered between Supplier and any Participating Entity before the termination date. 7) Scope. Supplier is awarded a Master Agreement to provide the solutions identified in ( Solicitation 100124) to Participating Entities. In Scope solutions include:
a) Aftermarket repair, replacement, and maintenance parts, supplies, and services for gasoline, diesel, compressed natural gas ( CNG), propane, hybrid, and electric automobiles, sport utility vehicles ( SUV), light duty trucks, medium duty trucks, heavy duty and vocational trucks, buses, and motorcycles.
8) Included Solutions. Supplier' s Proposal to the above referenced RFP is incorporated into this Master Agreement. Only those Solutions included within Supplier' s Proposal and within Scope ( Included Solutions) are included within the Agreement and may be offered to Participating Entities. 9) Indefinite Quantity. This Master Agreement defines an indefinite quantity of sales to eligible Participating Entities.
10) Pricing. Pricing information ( including Pricing and Delivery and Pricing Offered tables) for all Included Solutions within Supplier' s Proposal is incorporated into this Master Agreement. 11) Not to Exceed Pricing. Suppliers may not exceed the prices listed in the current Pricing List on file with Sourcewell when offering Included Solutions to Participating Entities. Participating Entities may request adjustments to pricing directly from Supplier during the negotiation and execution of any transaction.
12) Open Market. Supplier' s open market pricing process is included within its Proposal. 13) Supplier Representations:
i) Compliance. Supplier represents and warrants it will provide all Included Solutions under this Agreement in full compliance with applicable federal, state, and local laws and regulations.
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Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 8471244EEB86 100124- ORA
ii) Licenses. As applicable, Supplier will maintain a valid status on all required federal, state, and local licenses, bonds, and permits required for the operation of Supplier' s business with Participating Entities. Participating Entities may request all relevant documentation directly from Supplier.
iii) Supplier Warrants. Supplier warrants that all Included Solutions furnished under this Agreement are free from liens and encumbrances and shall pass through all available Manufacturer warranties to the participating entity.
14) Bankruptcy Notices. Supplier certifies and warrants it is not currently in a bankruptcy proceeding.

Supplier has disclosed all current and completed bankruptcy proceedings within the past seven years within its Proposal. Supplier must provide notice in writing to Sourcewell if it enters a bankruptcy proceeding at any time during the term of this Agreement. 15) Debarment and Suspension. Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota, the United States federal government, or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Agreement. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time during the term of this Agreement.
16) Supplier certifies that it is not a federal contractor and cannot accept purchases of Included Solutions with United States federal grants or other federal funds. Participating Entities that wish to use United States federal grant or other federal funding to purc_ hc1se solutions may not do so with Supplier The following list applies only to the extent that the Included Solutions are not purchased with federal funds.
i) EQUAL EMPLOYMENT OPPORTUNITY. Vendor represents and warrants that it is an equal opportunity employer.
ii) DAVIS- BACON ACT, AS AMENDED ( 40 U.S.C. § 3141- 3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis- Bacon Act ( 40 U.S.C. § 3141- 3144, and 3146- 3148) as supplemented by Department of Labor regulations ( 29 C.F.R. § 5, Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction"). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non- federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non- federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland " Anti- Kickback" Act ( 40 U.S.C. § 3145), as supplemented by Department of Labor regulations ( 29 C.F.R. § 3, " Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person v052824 3
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employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non- federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must comply with all applicable Davis- Bacon Act provisions.
iii} CONTRACT WORK HOURS AND SAFETY STANDARDS ACT ( 40 U.S.C. § 3701- 3708).

Where applicable, all contracts awarded by the non- federal entity in excess of $100, 000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations ( 29 C.F.R. § 5).

Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies, materials, or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Agreement. Supplier certifies that during the term of an award for all Agreements by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
iv} RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of "funding agreement" under 37 C.F.R. § 401. 2(a} and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that " funding agreement," the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, " Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all Agreements by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above. v} CLEAN AIR ACT ( 42 U.S.C. § 7401- 7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT { 33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of 150, 000 require the non- federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act ( 42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended ( 33 U.S.C. § 1251- 1387}. Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency EPA). Supplier certifies that during the term of this Agreement it will comply with applicable requirements as referenced above.
vi) DEBARMENT AND SUSPENSION ( EXECUTIVE ORDERS 12549 AND 12689). A contract award ( see 2 C.F.R. § 180. 220) must not be made to parties listed on the government wide exclusions in the System for Award Management ( SAM}, in accordance with the 0MB guidelines at 2 C.F.R. § 180 that implement Executive Orders 12549 ( 3 C.F.R. § 1986 Comp., p. 189} and 12689 ( 3 C.F.R. § 1989 Comp., p. 235}, " Debarment and Suspension." SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties v052824 4
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declared ineligible under statutory or regulatory authority other than Executive Order 12549.

Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
vii) BYRD ANTI- LOBBYING AMENDMENT, AS AMENDED { 31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non- federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non- federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti- Lobbying Amendment ( 31 U.S.C. § 1352). viii) RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200. 333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200. 333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed. ix) ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
xl BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
xi) ACCESS TO RECORDS ( 2 C.F.R. § 200. 336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier' s discharge of its obligations under this Agreement for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier' s personnel for the purpose of interview and discussion relating to such documents.
xii) PROCUREMENT OF RECOVERED MATERIALS ( 2 C.F.R. § 200. 322). A non- federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency ( EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $ 10, 000 or the value of the quantity acquired during the preceding fiscal year exceeded $ 10, 000; procuring solid waste management services in a manner that maximizes energy and resource recovery; v052824 5
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and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
xiii) FEDERAL SEAL( S), LOGOS, AND FLAGS. The Supplier cannot use the seal( s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre- approval. xiv) NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Agreement or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Agreement or any purchase by an authorized user. xv) PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. § 38 ( Administrative Remedies for False Claims and Statements) applies to the Supplier' s actions pertaining to this Agreement or any purchase by a Participating Entity.
xvi) FEDERAL DEBT. The Supplier certifies that it is non- delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
xvii) CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Agreement or any aspect related to the anticipated work under this Agreement raises an actual or potential conflict of interest ( as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
xviii) U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S. Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism. xix) PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Agreement it will comply with applicable requirements of 2 C.F.R. § 200. 216. xx) DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Agreement, Supplier will comply with applicable requirements of 2 C.F.R. § 200. 322.

Article 2:

Sourcewell and Supplier Obligations
The Terms in this Article 2 relate specifically to Sourcewell and its administration of this Master Agreement with Supplier and Supplier' s obligations thereunder. 1) Authorized Sellers. Supplier must provide Sourcewell a current means to validate or authenticate Supplier' s authorized dealers, distributors, or resellers which may complete transactions of Included v052824 6
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Solutions offered under this Agreement. Sourcewell may request updated information in its discretion, and Supplier agrees to provide requested information within a reasonable time. 2) Product and Price Changes Requirements. Supplier may request Included Solutions changes, additions, or deletions at any time. All requests must be made in writing by submitting a Sourcewell Price and Product Change Request Form to Sourcewell. At a minimum, the request must:

Identify the applicable Sourcewell Agreement number;
Clearly specify the requested change;
Provide sufficient detail to justify the requested change; Individually list all Included Solutions affected by the requested change, along with the requested change ( e.g., addition, deletion, price change); and Include a complete restatement of Pricing List with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Included Solutions offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Agreement and will be incorporated by reference.
3) Authorized Representative. Supplier will assign an Authorized Representative to Sourcewell for this Agreement and must provide prompt notice to Sourcewell if that person is changed. The Authorized Representative will be responsible for:

Maintenance and management of this Agreement;
Timely response to all Sourcewell and Participating Entity inquiries; and Participation in reviews with Sourcewell.

Sourcewell' s Authorized Representative is its Chief Procurement Officer. 4) Performance Reviews. Supplier will perform a minimum of one review with Sourcewell per agreement year. The review will cover transactions to Participating Entities, pricing and terms, administrative fees, sales data reports, performance issues, supply chain issues, customer issues, and any other necessary information.
5) Sales Reporting Required. Supplier is required as a material element to this Master Agreement to report all completed transactions with Participating Entities utilizing this Agreement. Failure to provide complete and accurate reports as defined herein will be a material breach of the Agreement and Sourcewell reserves the right to pursue all remedies available at law including cancellation of this Agreement.
6) Reporting Requirements. Supplier must provide Sourcewell an activity report of all transactions completed utilizing this Agreement. Reports are due at least once each calendar quarter ( Reporting Period). Reports must be received no later than 45 calendar days after the end of each calendar quarter. Supplier may report on a more frequent basis in its discretion. Reports must be provided regardless of the amount of completed transactions during that quarter { i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:

Participating Entity Name { e.g., City of Staples Highway Department); v052824 7
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Participating Entity Physical Street Address;
Participating Entity City;
Participating Entity State/ Province;
Participating Entity Zip/ Postal Code;
Sourcewell Participating Entity Account Number;
Transaction Description;
Transaction Purchased Price;
Sourcewell Administrative Fee Applied; and
Date Transaction was invoiced/ sale was recognized as revenue by Supplier.

If collected by Supplier, the Report may include the following fields as available:

Participating Entity Contact Name;
Participating Entity Contact Email Address;
Participating Entity Contact Telephone Number;
7) Administrative Fee. In consideration for the support and services provided by Sourcewell, Supplier will pay an Administrative Fee to Sourcewell on all completed transactions to Participating Entities utilizing this Agreement. Supplier will include its Administrative Fee within its proposed pricing.

Supplier may not directly charge Participating Entities to offset the Administrative Fee. 8) Fee Calculation. Supplier' s Administrative Fee payable to Sourcewell will be calculated as a stated percentage ( listed in Supplier' s Proposal) of all completed transactions utilizing this Master Agreement within the preceding Reporting Period. For certain categories, a flat fee may be proposed. The Administrative Fee will be stated in Supplier' s Proposal. 9) Fee Remittance. Supplier will remit fee to Sourcewell no later than 45 calendar days after the close of the preceding calendar quarter in conjunction with Supplier' s Reporting Period obligations defined herein. Payments should note the Supplier' s name and Sourcewell- assigned Agreement number in the memo; and must be either mailed to Sourcewell above " Attn: Accounts Receivable" or remitted electronically to Sourcewell' s banking institution per Sourcewell' s Finance department instructions.
10) Noncompliance. Sourcewell reserves the right to seek all remedies available at law for unpaid or underpaid Administrative Fees due under this Agreement. Failure to remit payment, delinquent payments, underpayments, or other deviations from the requirements of this Agreement may be deemed a material breach and may result in cancellation of this Agreement and disbarment from future Agreements.
11) Audit Requirements. Pursuant to Minn. Stat. § 16C. 05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by Sourcewell and the Minnesota State Auditor for a minimum of six years from the end of this Agreement. Supplier agrees to fully cooperate with Sourcewell in auditing transactions under this Agreement to ensure compliance with pricing terms, correct calculation and remittance of Administrative Fees, and verification of transactions as may be requested by a Participating Entity or Sourcewell.
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12) Assignment, Transfer, and Administrative Changes. Supplier may not assign or otherwise transfer its rights or obligations under this Agreement without the prior written consent of Sourcewell. Such consent will not be unreasonably withheld. Sourcewell reserves the right to unilaterally assign all or portions of this Agreement within its sole discretion to address corporate restructurings, mergers, acquisitions, or other changes to the Responsible Party and named in the Agreement. Any prohibited assignment is invalid. Upon request Sourcewell may make administrative changes to agreement documentation such as name changes, address changes, and other non- material updates as determined within its sole discretion.
13) Amendments. Any material change to this Agreement must be executed in writing through an amendment and will not be effective until it has been duly executed by the parties. 14) Waiver. Failure by Sourcewell to enforce any right under this Agreement will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right.
15) Complete Agreement. This Agreement represents the complete agreement between the parties for the scope as defined herein. Supplier and Sourcewell may enter into separate written agreements relating specifically to transactions outside of the scope of this Agreement. 16) Relationship of Sourcewell and Supplier. This Agreement does not create a partnership, joint venture, or any other relationship such as employee, independent contractor, master- servant, or principal- agent.
17) Indemnification. Supplier must in.demnify, defend, save, and hold Sourcewell, including their agents and employees, harmless from any claims or causes of action, including attorneys' fees incurred by Sourcewell, arising out of any negligent act or omission or any act or omission constituting willful misconduct in the performance of this Agreement by the Supplier or its agents or employees; this indemnification includes injury or death to person( s) or property alleged to have been caused by some defect in design, condition, or performance of Included Solutions under this Agreement.

Sourcewell' s responsibility will be governed by the State of Minnesota' s Tort Liability Act ( Minnesota Statutes Chapter 466) and other applicable law.
18) Data Practices. Supplier and Sourcewell acknowledge Sourcewell is subject to the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13. As it applies to all data created and maintained in performance of this Agreement, Supplier may be subject to the requirements of this chapter.
19) Grant of License.
a) During the term of this Agreement:
i) Supplier Promotion. Sourcewell grants to Supplier a royalty- free, worldwide, non- exclusive right and license to use the trademark( s) provided to Supplier by Sourcewell in advertising, promotional materials, and informational sites for the purpose of marketing Sourcewell' s Agreement with Supplier.
ii) Sourcewell Promotion. Supplier grants to Sourcewell a royalty- free, worldwide, nonexclusive right and license to use Supplier' s trademarks in advertising, promotional v052824 9
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materials, and informational sites for the purpose of marketing Supplier' s Agreement with Sourcewell.
b) Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, partners, or agents ( collectively " Permitted Sublicensees") in advertising, promotional, or informational materials for the purpose of marketing the Parties' relationship. Any sublicense granted will be subject to the terms and conditions of this Article.

Each party will be responsible for any breach of this section by any of their respective su blicensees.
c) Use; Quality Control.
i) Neither party may alter the other party' s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos. ii) Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party' s trademarks only in good faith and in a dignified manner consistent with such party' s use of the trademarks. Each party may make written notice to the other regarding misuse under this section. The offending party will have 30 days of the date of the written notice to cure the issue or the license/ sublicense will be terminated. d) Termination. Upon the termination of this Agreement for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party' s name or logo ( excepting Sourcewell' s pre- printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell' s written directions.
20) Venue and Governing law between Sourcewell and Supplier Only. The substantive and procedural laws of the State of Minnesota will govern this Agreement between Sourcewell and Supplier. Venue for all legal proceedings arising out of this Agreement between Sourcewell and Supplier will be in court of competent jurisdiction within the State of Minnesota. This section does not apply to any dispute between Supplier and Participating Entity. This Agreement reserves the right for Supplier and Participating Entity to negotiate this term to within any transaction documents. 21) Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Agreement is capable of being performed, it will not be affected by such determination or finding and must be fully performed. 22) Insurance Coverage. At its own expense, Supplier must maintain valid insurance policy( ies) during the performance of this Agreement with insurance company( ies) licensed or authorized to do business in the State of Minnesota having an " AM BEST" Financial Strength rating of A- or better, with coverage and limits of insurance not less than the following:
a) Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (" ISO") Commercial General Liability Form CG000l ( 2001 or newer v052824 10
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edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products- completed operations including contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Agreement.
1,500, 000 each occurrence Bodily Injury and Property Damage 1,500, 000 Personal and Advertising Injury
2,000, 000 aggregate for products liability- completed operations 2,000, 000 general aggregate
b) Certificates of Insurance. Prior to execution of this Agreement, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Agreement. Prior to expiration of the policy( ies), rRenewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or provided to in an alternative manner as directed by Sourcewell. The certificates must be signed by a person authorized by the insurer( s) to bind coverage on their behalf. Failure of Supplier to maintain the required insurance and documentation may constitute a material breach. c) Additional Insured Endorsement and Primary and Non- contributory Insurance Clause. Supplier agrees to list Sourcewell, including its officers, agents, and employees, as an additional insured under the Supplier' s commercial general liability insurance policy with respect to liability arising out of activities, " operations," or " work" performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision( s) or endorsement( s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self- insurance in force for the additional insureds. d) Waiver of Subrogation. Supplier waives and must require ( by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Agreement or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/ or self- insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors. e) Umbrella/ Excess Liability/ SELF- INSURED RETENTION. The limits required by this Agreement can be met by either providing a primary policy or in combination with umbrella/ excess liability policy( ies), or self- insured retention.
23) Termination for Convenience. Sourcewell or Supplier may terminate this Agreement upon 60 calendar days' written notice to the other Party. Termination pursuant to this section will not relieve the Supplier' s obligations under this Agreement for any transactions entered with Participating Entities through the date of termination, including reporting and payment of applicable Administrative Fees.
24) Termination for Cause. Sourcewell may terminate this Agreement upon providing written notice of material breach to Supplier. Notice must describe the breach in reasonable detail and state the intent to terminate the Agreement. Upon receipt of Notice, the Supplier will have 30 calendar days in which it must cure the breach. Termination pursuant to this section will not relieve the Supplier' s v052824 11
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obligations under this Agreement for any transactions entered with Participating Entities through the date of termination, including reporting and payment of applicable Administrative Fees.

Article 3:

Supplier Obligations to Participating Entities
The Terms in this Article 3 relate specifically to Supplier and a Participating Entity when entering transactions utilizing the General Terms established in this Master Agreement. Article 1 General Terms control over any conflict with this Article 3. Where this Master Agreement is silent on any subject, Participating Entity and Supplier retain the ability to negotiate mutually acceptable terms. 1) Quotes to Participating Entities. Suppliers are encouraged to provide all pricing information regarding the total cost of acquisition when quoting to a Participating Entity. Suppliers and Participating Entities are encouraged to include all cost specifically associated with or included within the Suppliers proposal and Included Solutions within transaction documents. 2) Shipping, Delivery, Acceptance, Rejection, and Warranty. Supplier' s proposal may include proposed terms relating to shipping, delivery, inspection, and acceptance/ rejection and other relevant terms of tendered Solutions. Supplier and Participating Entity may negotiate final terms appropriate for the specific transaction relating to non- appropriation, shipping, delivery, inspection, acceptance/ rejection of tendered Solutions, and warranty coverage for Included Solutions. Such terms may include, but are not limited to, costs, risk of loss, proper packaging, inspection rights and timelines, acceptance or rejection procedures, and remedies as mutually agreed include notice requirements, replacement, return or exchange procedures, and associated costs. 3) Applicable Taxes. Participating Entity is responsible for notifying supplier of its tax- exempt status and for providing Supplier with any valid tax- exemption certification{ s) or related documentation. 4) Ordering Process and Payment. Supplier' s ordering process and acceptable forms of payment are included within its Proposal. Participating Entities will be solely responsible for payment to Supplier and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

S) Transaction Documents. Participating Entity may require the use of its own forms to complete transactions directly with Supplier utilizing the terms established in this Agreement. Supplier' s standard form agreements may be offered as part of its Proposal. Supplier and Participating Entity may complete and document transactions utilizing any type of transaction documents as mutually agreed. In any transaction document entered utilizing this Agreement, Supplier and Participating Entity must include specific reference to this Master Agreement by number and to Participating Entity' s unique Sourcewell account number.
6) Additional Terms and Conditions Permitted. Participating Entity and Supplier may negotiate and include additional terms and conditions within transaction documentation as mutually agreed. Such terms may supplant or supersede this Master Agreement when necessary and as solely determined by Participating Entity. Sourcewell has expressly reserved the right for Supplier and Participating Entity to address any necessary provisions within transaction documents not expressly included within this Master Agreement, including but not limited to transaction cancellation, dispute resolution, governing law and venue, non- appropriation, insurance, defense and indemnity, force majeure, and other material terms as mutually agreed.
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7) Subsequent Agreements and Survival. Supplier and Participating Entity may enter into a separate agreement to facilitate long- term performance obligations utilizing the terms of this Master Agreement as mutually agreed. Such agreements may provide for a performance period extending beyond the full term of this Master Agreement as determined in the discretion of Participating Entity.
8) Participating Addendums. Supplier and Participating Entity may enter a Participating Addendum or similar document extending and supplementing the terms of this Master Agreement to facilitate adoption as may be required by a Participating Entity.

Sourcewell O'Reilly Auto Enterprises, LLC
IASignedby:

Sy.: ~ t~~ m17 By: [ l.i;JJ~~::a~-
Jeremy Schwartz Wes Wise
Title: Chief Procurement Officer Title: VP of Professional Sales 1/18/2025 I 9:16 AM CST
Date: __________ _
1/17/2025 I 3:26 PM CST
Date: __________ _
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Docusign Envelope ID: FF6432CA- 4544- 408B- 9EA5- 8471244EEB86 RFP 100124 - Aftermarket Vehicle Parts and Supplies
Vendor Details
Company Name: O'Reilly Auto Enterprises LLC
Does your company conduct
business under any other name? If O'Reilly Auto Parts
yes, please state:
233 S Patterson
Address:

Contact:

Email:

Phone:

HST#:

Submission Details
Created On:

Submitted On:

Submitted By:

Email:

Transaction#:

Submitter~ s IP Address:

Bid Number: RFP 100124
Springfield, MO 65802
Robert Fulp
coops@oreillyauto. com
417- 829- 5822
86- 0221312
Tuesday August 13, 2024 09: 12: 04
Monday September 30, 2024 08: 40: 59
Robert Fulp
coops@oreillyauto. com
09e 7b254- 28e4- 424c- a810- aa00fb1534e2

66. 119. 29. 113
Vendor Name: O'Reilly Auto Enterprises LLC
274
Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 8471244EEB86 Specifications
Table 1: Proposer Identity & Authorized Representatives ( Not Scored) General Instructions ( applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond " N/A" if the question does not apply to you (preferably with an explanation).

Table 1 Specific Instructions. Sourcewell requires identification of all parties responsible for providing Solutions under a resulting master agreement( s) (Responsible Supplier). Proposers are strongly encouraged to include all potential Responsible Suppliers including any corporate affiliates, subsidiaries, D.B.A., and any other authorized entities within a singular proposal. All information required under this RFP must be included for each Responsible Supplier as instructed. Proposers with multiple Responsible Supplier options may choose to respond individually as distinct entities, however each response will be evaluated individually and only those proposals recommended for award may result in a master agreement award. Unawarded entities will not be permitted to later be added to an existing master agreement through operation of Proposer' s corporate organization affiliation. 1 Provide the legal name of the Proposer
authorized to submit this Proposal.
2 3
4 5
6 7
8 9
10 In the event of award, is this entity the
Responsible Supplier that will execute the
master agreement with Sourcewell? Y or N.

Identify all subsidiaries, D.B.A., authorized
affiliates, and any other entity that will be
responsible for offerin' g and performing delivery
of Solutions within this Proposal ( i.e.

Responsible Supplier( s) that will execute a
master agreement with Sourcewell).

Provide your CAGE code or Unique Entity
Identifier ( SAM):

Provide your NAICS code applicable to
Solutions proposed.

Proposer Physical Address:

Proposer website address ( or addresses):

Proposer' s Authorized Representative ( name,
title, address, email address & phone) ( The
representative must have authority to sign
the " Proposer' s Assurance of Compliance" on
behalf of the Proposer):

Proposer' s primary contact for this proposal
name, title, address, email address & phone):

Proposer' s other contacts for this proposal, if
any ( name, title, address, email address &
phone):

O'Reilly Auto Enterprises, LLC
y
O'Reilly Automotive Stores, Inc., O'Reilly Auto Enterprises, LLC, O'Reilly Auto Parts 1R3Z4
441330
Corporate Address:
233 South Patterson Ave, Springfield, MO, 65802
We also have over 6,000 stores across the United States.

Retail Site:
www. oreillyauto. com
Professional Site:
www. firstcallonline. com
Wes Wise
VP of Professional Sales
233 South Patterson Ave, Springfield, MO, 65802
wwise@oreillyauto. com
417- 520- 4634
Robert Fulp
Strategic Accounts Administrative Manager
233 South Patterson Ave, Springfield, MO, 65802
rfulpii@oreillyauto. com
417- 829- 5822
Joe Micko
Senior Director of Strategic Accounts
233 South Patterson Ave, Springfield, MO, 65802
jmicko@oreillyauto. com
417- 829- 5866
Table 2A: Financial Viability and Marketplace Success ( 50 Points) Response• ll
Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 275
Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 8471244EEB86 11 Provide a brief history of your company, O'Reilly Automotive, Inc. officially started in the auto parts business in Springfield, including your company' s core values, Missouri, in November of 1957. However, its historical background in the automotive business philosophy, and industry longevity business, as well as the family' s quest for opportunity and advancement, may be related to the requested Solutions. traced back to a much earlier time.

Michael Byrne O'Reilly immigrated to America in 1849, escaping from the hard times of the potato famine, which struck Ireland in 1845- 46. Settling in St. Louis, he worked his way through school to earn a law degree, and then pursued a career as a title examiner. His son, Charles Francis O'Reilly, attended college in St. Louis and went to work in 1914 as a traveling salesman for Fred Campbell Auto Supply in St.

Louis. By 1924, Charles had become familiar with the Springfield area, having traveled by train to sell auto parts throughout the territory. He recognized the region as an area of growth and opportunity and asked to be transferred there. By 1932, he had become manager of Link Motor Supply in Springfield. One of his sons, Charles H. ( Chub) O'Reilly, had also joined the company. Together they provided the leadership and management that made Link the predominant auto parts store in the area.

In 1957, Link planned a reorganization, which would have included the retirement of 72-year- old Charles F. O'Reilly, and the transfer of C. H. O'Reilly to Kansas City.

Since neither agreed with these plans, they made the decision to form their own company, O'Reilly Automotive, Inc. They opened for business on December 2, 1957 with one store and 13 employees at 403 Sherman in Springfield. Their sales totaled 700, 000 in 1958, their first full year of business. Due to the hard work and ability of the original employees, several of whom were stockholders in the company, the business grew and prospered from its very first year.

By 1961, the company' s volume had reached $ 1.3 million - the combined volume of O'Reilly Automotive Distributors, a division formed to serve independent automotive jobbers in the area. In March of 1975, annual sales volume rose to $ 7 million, and a 52,000- square- foot facility at 233 S. Patterson was built for the O'Reilly/ Ozark warehouse operation. By that time, the company had nine stores, all located in southwest Missouri.

The long range plans and stability of the company were solidified by a public offering of company stock in April 1993. Since that time, the Company has grown through the opening of new stores, as well as through numerous mergers and acquisitions, and currently operates over 6,000 stores in 48 states, including Alaska and Hawaii, Puerto Rico, and stores in Mexico and Canada.

Throughout this time the underlying spirit and philosophy of O'Reilly Automotive, Inc., .. has been one of growth and progress, both for the company and its team members. This remains the policy to which the company is dedicated today. 12 What are your company' s expectations in the To grow our sales and market share within the public sector. We want to have event of an award? offerings to our government customers that allows them to make compliant purchases in a streamlined, easy to use method to ensure the customer has nothing to worry about.
13 Demonstrate your financial strength and O'Reilly is a publicly traded company under the symbol ' ORLY'. Between 2020 and stability with meaningful data. This could 2023, O'Reilly' s net sales increased 36% due to organic store growth and customer include such items as financial statements, retainment. We plan to continue this trajectory into the future.

SEC filings, credit and bond ratings, letters
of credit, and detailed reference letters. Please see the attached 10-K ( O'Reilly Auto Parts 2023 Annual Report).

Upload supporting documents ( as applicable)
in the document upload section of your
response. DO NOT PROVIDE ANY TAX

INFORMATION OR PERSONALLY
IDENTIFIABLE INFORMATION.
14 What is your US market share for the According to Forbes, O'Reilly has a 19% market share in aftermarket Solutions that you are proposing? automotive parts and accessories. 15 What is your Canadian market share for the Although O'Reilly recently acquired Vast- Auto, a Canadian Auto Parts company, we Solutions that you are proposing? are not fully integrated at this time and do not have this data available. Once we are fully integrated with our Canadian operations, we would be willing to provide this info. 16 Disclose all current and completed bankruptcy O'Reilly has never entered any bankruptcy proceedings. proceedings for Proposer and any included
possible Responsible Party within the past
seven years. Proposer must provide notice in
writing to Sourcewell if it enters a bankruptcy
proceeding at any time during the pendency
of this RFP evaluation.

Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 276
Docusign Envelope ID: FF6432CA- 4544- 408B- 9EA5- 8471244EEB86 17 How is your organization best described: is it We are a distributor/ reseller and purchase automotive products in substantial a manufacturer, a distributor/ dealer/ reseller, or quantities from over 900 suppliers. a service provider? Answer the question that
best applies to your organization, either a) or Our stores offer a wide selection of products for domestic and imported b). automobiles, vans and trucks. Our merchandise generally consists of nationally a) If your company is best described as a recognized, well- advertised, premium name brand products, such as AC Delco, distributor/ dealer/ reseller ( or similar entity), Armor All, Bosch, BWD, Cardone, Castro!, Gates Rubber, Monroe, Moog, Pennzoil, provide your written authorization to act as a Prestone, Quaker State, STP, Turtle Wax, Valvoline, Wagner, and Wix, and a wide distributor/ dealer/ reseller for the manufacturer selection of quality proprietary private label products, which span the entire good, of the products proposed in this RFP. If better and best value spectrum, under our BestTest®, BrakeBest®, Import Direct®, * applicable, is your dealer network Master Pro®, Micro- Gard®, Murray®, Omnispark®, O'Reilly Auto Parts®, Precision®, independent or company owned? Power Torque®, Super Start®, and Ultima® brands. Our proprietary private label b) If your company is best described as a products are produced by nationally recognized manufacturers, meet or exceed manufacturer or service provider, describe original equipment manufacturer specifications and consist of house brands and your relationship with your sales and service nationally recognized proprietary bands, which we have acquired or developed over force and with your dealer network in time. We are authorized to act as a distributor/ dealer/ reseller for all products that we delivering the products and services proposed offer.
in this RFP. Are these individuals your
employees, or the employees of a third party? All O'Reilly stores are company owned and operated. 18 If applicable, provide a detailed explanation Aside from normal retail licenses and certifications for our stores to operate, we do outlining the licenses and certifications that not have nor are required to have any additional licenses or certifications. are both required to be held, and actually
held, by your organization ( including third *
parties and subcontractors that you use) in
pursuit of the business contemplated by this
RFP.
19 Disclose all current and past debarments or O'Reilly has does not have any current or past debarments or suspensions. suspensions for Proposer and any included
possible Responsible Party within the past
seven years. Proposer must provide notice in *
writing to Sourcewell if it enters a debarment
or suspension status any time during the .,
pendency of this RFP evaluation.
20 Describe any relevant industry awards or O'Reilly has received recognition from industry leaders in both the automotive recognition that your company has received in service industry and automotive aftermarket parts manufacturers. the past five years.

Recently, O'Reilly was recognized by Forbes magazine as one of America' s Best * Large Employers, Best Employer for New Grads (# 395), Best Customer Service 119), Best Brands for Social Impact (# 199), and Best Employers for Veterans 122).
21 What percentage of your sales are to the O'Reilly' s sales to the government sector in the past three years has been 1 % of governmental sector in the past three years? total sales. This figure is based on government customers that have a registered * account with O'Reilly. This does not figure in gJvernmental walk in customer sales that are not tracked by customer type.
22 What percentage of your sales are to the We do not track educational sector sales at this time. * education sector in the past three years?
23 List all state, cooperative purchasing O'Reilly has national cooperative purchasing agreements with Sourcewell, TIPS, & agreements that you hold. What is the annual NCPA ( OMNIA Partners). * sales volume for each of these agreement
over the past three years? For 2023, cooperative program sales amounted to $ 84 million. 24 List any GSA contracts or Standing Offers O'Reilly does not have any GSA or SOSA contracts or agreements. and Supply Arrangements ( SOSA) that you
hold. What is the annual sales volume for .
each of these contracts over the past three
years?
Table 28: References/ Testimonials
Line Item 25. Supply reference information from three customers who are eligible to be Sourcewell participating entities.

Entity Name • •· .•• Contact Name~ > .·. Phone\Number * .

City of Olathe, Kansas John Page 913- 971- 9039 *
City of Houston, Texas Jessica Vargas 832- 393- 8025 *
State of Missouri Jeff Ball 573- 526- 7930 *
Table 3: Ability to Sell and Deliver Solutions ( 150 Points) Describe your company' s capability to meet the needs of Sourcewell participating entities across the US and Canada, as applicable. Your Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 277
Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 8471244EEB86 response should address in detail at least the following areas: locations of your network of sales and service providers, the number of workers ( full-time equivalents) involved in each sector, whether these workers are your direct employees ( or employees of a third party), and any overlap between the sales and service functions.

Line
Item
26 27
28 29
30 31
32 33
Question .. •:: . < .•.

Sales force.

Describe the network of Authorized Sellers
who will deliver Solutions, including dealers,
distributors, resellers, and other distribution
methods.

Service force.

Describe the ordering process. If orders will
be handled by distributors, dealers or
others, explain the respective roles of the
Proposer and others.

Describe in detail the process and
procedure of your customer service
program, if applicable. Include your
response- time capabilities and
commitments, as well as any incentives that
help your providers meet your stated
service goals or promises.

Describe your ability and willingness to
provide your products and services to
Sourcewell participating entities.

Describe your ability and willingness to
provide your products and services to
Sourcewell participating entities in Canada.

R~sponse* . .. ..•. :.. .,. .. . .· . •.•. '. "' ...

We have approximately 775 full- time O'Reilly sales representatives strategically located across our market areas as part of our First Call program. Each sales representative is dedicated solely to calling upon, selling to and servicing our professional service provider customers.

As of June 30, 2024, O'Reilly operates 30 distribution centers across the US. Our DCs stock an average of 152, 000 SKUs and most are linked to and have access to multiple other regional DCs' inventory. Our DCs provide five- night- a-week delivery, primarily via O'Reilly' s company- owned fleet, to all of our stores. O'Reilly employs approximately 9,500 Team Members at our US DCs.

O'Reilly stores also receive deliveries from our Hub store network. This comprises 385 hub stores that also provide delivery service and same- day access to stores within the surrounding areas to an average of 52,000 SKUs. Hubs in select markets carry further enhanced inventory levels up to approximately 106, 000 SKUs.

As of June 30, 2024, O'Reilly operates 6,152 stores in 48 states. Each store employs 11 Team Members on average and carries approximately 22, 000 SKUs on average. Each store is staffed with a store manager and one or more assistant managers, in addition to parts specialists, retail and/ or installer service specialists, and other positions required to meet the specific needs of each store.

For a Sourcewell entity to purchase on contracted pricing, they must have an O'Reilly Account Number. This account number loads the entity to the Sourcewell group code so that the contracted pricing will be automatically applied to the account and they will be loaded to any contracted reporting.

When making purchases at an O'Reilly store, the entity should provide their O'Reilly account number while placing the order. First Call Online is also a free tool for entities to use where they can place orders, look up parts and availability, view statements, etc. In either ordering method, all orders will be handled internally at O'Reilly.

We seek to provide our customers with an efficient and pleasant in-store experience by maintaining attractive stores in convenient locations with a wide selection of automotive products. We believe that the satisfaction of professional service provider customers is substantially dependent upon our ability to provide, in a timely fashion, the specific automotive products needed to complete their repairs. Accordingly, each O'Reilly store carries, or has same or next day availability to, a broad selection of automotive products designed to cover a wide range of vehicle applications. We continuously refine the inventory levels and assortments carried in each of our stores and within our network, based in large part on the sales movement tracked by our inventory control system, market vehicle registration data, failure rates and management' s assessment of the changes and trends in the marketplace. We have no material backorders for the products we sell.

We seek to attract new customers and to retain existing customers by offering superior customer service, the key elements of which are identified below:
1) Superior in-store service through highly- motivated, technically- proficient store personnel (" Professional Parts People");
2) An extensive selection and availability of products; 3) Attractive stores in convenient locations;
4) Competitive pricing, supported by a good, better, best product assortment designed to meet all of our customers' quality and value preferences; and 5) A robust point- of-sale system integrated with our proprietary electronic catalog, which contains a wide variety of product images, schematics and technical specifications, equips our Team Members with highly effective tools to source products in our extensive supply network.

O'Reilly has over 90,000 team members that are willing and ready to provide Sourcewell participating entities with our industry leading automotive products and services in the United States.

O'Reilly recently acquired Vast- Auto, based out of Montreal Canada. Although we plan to fully integrate this acquisition with the O'Reilly network, we are unable to service Canadian entities through this contract at this time. We hope this changes in the future and will inform Sourcewell when we can.

Identify any geographic areas of the United O'Reilly Auto currently does not have a presence in Delaware or New Jersey. We are States or Canada that you will NOT be fully working on integrating the O'Reilly network with our recent Canadian acquisition of Vast-* serving through the proposed agreement. Auto, however at this time Canada will not be serviced through this agreement as well.

Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 278
Oocusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 8471244EEB86 34 Identify any account type of Participating We do not have any limitations on sectors except where we do not currently have a Entity which will not have full access to store presence. your Solutions if awarded an agreement,
and the reasoning for this.
35 Define any specific requirements or O'Reilly is currently operating in Hawaii and Alaska without any specific requirements restrictions that would apply to our or restrictions unless the entity is over 5 miles from an O'Reilly store. If the entity is participating entities in Hawaii and Alaska over 5 miles, they can still utilize the contract for purchases however delivery may not and in US Territories. be available. We do not have a presence in US territories at this time. 36 Will Proposer extend terms of any awarded O'Reilly will extend the terms of this agreement to nonprofit entities that are members master agreement to nonprofit entities? of Sourcewell.

Table 4: Marketing Plan ( 100 Points)
37 Describe your marketing strategy for
promoting this opportunity. Upload
representative samples of your
marketing materials ( if applicable) in
the document upload section of your
response.
38 Describe your use of technology and
digital data ( e.g., social media,
metadata usage) to enhance
marketing effectiveness.

O'Reilly' s extensive and knowledgeable sales force is out in the field calling on new and existing customers on a daily basis. These team members are knowledgeable in our cooperative contract offering and if we were to be awarded this contract, they would begin offering the use of it to applicable customers. Please see attachment ' O'Reilly Marketing Materials' for more information.

O'Reilly has a presence on all major social media platforms. These are utilized to spread awareness of our product offering and current promotions. 39 In your view, what is Sourcewell' s role
in promoting agreements arising out of
this RFP? How will you integrate a
Sourcewell- awarded agreement into
your sales process?
O'Reilly views Sourcewell as a partner in promoting this contract. We would expect Sourcewell to inform its members of our contract, if awarded. O'Reilly will utilize our sales force to reach out to prospective Sourcewell members to educate them on our program and facilitate any additional needs that are required - to register and use this program. 40 Are your Solutions available through
an e-procurement ordering process? If
so, describe your e-procurement
system and how governmental and
educational customers have used it.

Yes, O'Reilly offers our full catalog and ordering system called First Call Online for no charge. Customers can look up parts, place orders, make payments, and utilize multiple features that will help with their every purchasing need. See attachment ' O'Reilly Auto Parts First Call Online' for more information.

Table SA: Value- Added Attributes ( 100 Points)
Line
Item.
41 42
Describe any product, equipment,
maintenance, or operator training
programs that you offer to
Sourcewell participating entities.

Include details, such as whether
training is standard or optional,
who provides training, and any
costs that apply.

Describe any technological
advances that your proposed
Solutions offer.

We offer several training options from class room courses to web based training. The cost of the courses can vary by number of attendees and type of training. O'Reilly has the ability to custom tailor these courses to meet the needs of agencies.

Please see the O'Reilly training brochure located in the ' O'Reilly Marketing Materials' attachment.

To pair with the online ordering system, we have added connectivity with your smart phone to allow VIN scanning. Vehicle information can now be looked up through the vehicle' s license plate number as well. To streamline the accounting side we have the capability to transmit and receive invoice, credit, and payment information via EDI.

O'Reilly is also launching a mobile app in 01 of 2025. This will be included as a solution under this contract. More information on this will be provided closer to launch date.

Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 279
Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 84 71244EEB86 43 Describe any " green" initiatives O'Reilly Auto Part' s motto is ' Live Green'. To show our commitment to living green, we have that relate to your company or to the following green initiatives in place at O'Reilly:
your Solutions, and include a list
of the certifying agency for each. 1) Oil and Oil filters - Almost all stores accept oil/transmission fluid and oil filters from walkin customers. This is done at no charge to the customer. 2) Batteries - We take and recycle batteries at no charge to our customers. 3) Cardboard - If the trash haulers that service our stores participate in a recycling program, cardboard recycling is offered at store level. Whether recycling or not, stores are asked to break down all cardboard boxes, thus reducing the frequency of trash/ cardboard pick ups required. This reduces the fuel used by the haulers. The DCs compact and bale their own cardboard which is picked up by the recycling plant.
4) Paper - The corporate headquarters and many regional offices have bins to collect paper * for recycling. Even our Team Spirit ( internal monthly magazine for all O'Reilly Team Members) is published on recycled paper.
5) Aluminum cans - Most DCs and offices recycle aluminum cans. 6) Fuel - We purchase four- cylinder trucks which run more fuel efficiently than other trucks in the market.
7) Energy - Most stores and some DCs have an energy management system installed which controls peak demand, maintains HVAC setpoints and notifies us when HVAC units are not functioning efficiently, thus reducing the energy consumed and money spent for energy. 8) Other - Some DC/ office locations recycle metal, pallets, and phone books. Stores are always encouraged to look at items/ ways they can recycle cardboard, paper, aluminum, etc., from the store through local contacts within their communities. 44 Identify any third- party issued eco- We have a number of products that have a combination of eco- labels, ratings or labels, ratings or certifications that certifications. A list of these products can be made avail~ ble upon request. your company has received for the
Solutions included in your Proposal *
related to energy efficiency or
conservation, life- cycle design
cradle- to-cradle), or other
green/ sustainability factors.
45 What unique attributes does your We lead the industry in parts availability, and our competitive advantage starts with a very company, your products, or your robust, tiered, regional distribution network made up of 30 distribution centers, which services offer to Sourcewell replenish our stores at least five nights a week from inventories that average 152, 000 SKUs. participating entities? What makes By servicing our stores at least five nights a week, we are able to deploy our inventory your proposed solutions unique in dollars in a greater breadth of inventory at the store level, versus carrying a greater depth of your industry as it applies to inventory that would be required if our stores were replenished less often from the DCs. This Sourcewell participating entities? breadth of inventory means we will be much more likely to have a part in stock in the store when a customer needs it. We further augment our store level inventory availability by providing more than 95% of our stores with same day access to a * broader selection of hard- to-find inventory through multiple daily deliveries from either a DC or one of our 385 expanded inventory Hub stores, which stock on average 52,000 SKUs.

Hubs in select markets carry a further enhanced inventory levels of 106, 000 SKUs. Our customer service commitment is to " never say no," and we will remain the industry leader in parts availability, providing our Team Members with the tools necessary to provide extremely high levels of service and earn customers' business.

All O'Reilly stores are company owned meaning uniform adherence to contract provisions across the nation.

Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 280
Docusign Envelope ID: FF6432CA- 4544- 4D88- 9EA5- 8471244EEB86 Table 5B: Value- Added Attributes
Line ... .... ··.·•·· .. • •\">t ··. :-,' i;' ,--->->>_-,--,-... · oo·•. > • d ,, ., item Question .. ••• .:,.,\• . Certification . . ere . . .... ·.· ·•. ·•· . • .. • .• ·. •·· ·. ·.· 46 Select any Women or r Yes
Minority Business r. No
Entity ( WMBE), Small
Business Entity
SBE), or veteran
owned business
certifications that your
company or hub
partners have
obtained. Upload
documentation and a
listing of dealerships,
HUB partners or resellers if available.

Select all that apply.
47 Minority Business r Yes
Enterprise ( MBE) r. No
48 Women Business r Yes
Enterprise ( WBE) r. No
49 Disabled- Owned r Yes
Business Enterprise r. No
DOSE)
50 Veteran- Owned r Yes
Business Enterprise r. No
VBE)
51 Service- Disabled r Yes
Veteran- Owned r. No
Business
SDVOB)
52 Small Business r Yes
Enterprise ( SBE) r. No
53 Small Disadvantaged r Yes -
Business ( SOB) r. No
54 Women- Owned Small r Yes
Business ( WOSB) r. No
Table 6: Pricing ( 400 Points)
Cc,mment Y/ •.•·
Provide detailed pricing information in the questions that follow below.

Line, Question.·
Item·
55 Describe your payment terms and accepted payment
methods.
56 57
58 Describe any leasing or financing options available for use by educational or governmental entities.

Describe any standard transaction documents that you
propose to use in connection with an awarded agreement
order forms, terms and conditions, service level
agreements, etc.). Upload all template agreements or
transaction documents which may be proposed to
Participating Entities.

Do you accept the P-card procurement and payment
process? If so, is there any additional cost to Sourcewell participating entities for using this process?
Bid Number: RFP 100124
Resj)orise *
O'Reilly offers payment terms of 2% 10th, net 20th upon approved credit. To receive the early pay discount, statements must be made either with cash or check.

We also accept cash and credit cards as payment methods at point of sale.

We can facilitate leasing options through a third party, however we do not offer leasing options ourselves. O'Reilly does offer in-house financing primarily on shop equipment, upon approved credit.

We are requesting Sourcewell entities to utilize our online catalog called First Call Online ( www. firstcallonline. com) to place orders or by calling their assigned O'Reilly store.

If an entity is requesting a charge account, we have
uploaded ' O'Reilly Credit App' for their review.

Yes, P-cards are accepted as long as they are backed by a major credit card company. There is no additional cost for this service.

Vendor Name: O'Reilly Auto Enterprises LLC
281
Docusign Envelope ID: FF6432CA- 4544- 4D88- 9EA5- 8471244EEB86 59 Describe your pricing model ( e.g., line- item discounts or We offer a product- category discount pricing model. The proposed product- category discounts). Provide detailed pricing data discount for Sourcewell will be O'Reilly List Price less 41 % or better. including standard or list pricing and the Sourcewell This discount will cover every item we offer. Due to the number of discounted price) on all of the items that you want items O'Reilly offers, an individual listing of every item is Sourcewell to consider as part of your RFP response. If not available. We do have attached the iisiing oi every product applicable, provide a SKU for each item in your proposal. category, subcategory, and segment on items we are proposing with Upload your pricing materials ( if applicable) in the the stated discount. document upload section of your response.
60 Quantify the pricing discount represented by the pricing Sourcewell' s catalog discount will be O'Reilly List Price less 41 % or proposal in this response. For example, if the pricing in better. This discount will range off O'Reilly List Price from 41 % to your response represents a percentage discount from 80% off.

MSRP or list, state the percentage or percentage range. 61 Describe any quantity or volume discounts or rebate Any quantity discounts are evaluated on a case by case basis. programs that you offer.

If an entity is looking for a stocking program, we do offer discounted pricing on select, commonly used items if they were to maintain a minimum stocking inventory of $ 250. Please see the O'Reilly Stocking Program flyer contained in the attachment ' O'Reilly Marketing Materials' for more information.

We also offer brake kit packages as a way for entities to save money. When an entity purchases two rotors and a set of pads, they will be discounted to a flat rate based on the tier of the brake pads/ rotors. For more information on our brake kits, please see the latest O'Reilly Brake Packages flyer contained in the
attachment ' O'Reilly Marketing Materials' for more information. 62 Propose a method of facilitating " sourced" products or O'Reilly is proud of our ' Never Say No' philosophy when it comes to related services, which may be referred to as " open ensuring the customers have what they need. In the event an agency market" items or " non- contracted items". For example, you is needing a product that O'Reilly does not offer, we will still source may supply such items " at cost" or " at cost plus a the part from a third party. These outside purchases are priced at a percentage," or you may supply a quote for each such
request. •
sliding scale based on the acquisition cost.
63 Identify any element of the total cost of acquisition that is If an item is not available within the store' s distribution network or if NOT included in the pricing submitted with your response. it is a special order item from the manufacturer, additional freight This includes all additional charges associated with a charges may apply. All additional charges will be communicated and purchase that are not directly identified as freight or approved with the customer prior to the acceptance of the order. shipping charges. For example, list costs for items like predelivery inspection, installation, set up, mandatory training, We do not mark up shipping costs. or initial inspection. Identify any parties that impose such costs and their relationship to the Proposer.
64 If freight, delivery, or shipping is an additional cost to the Freight/ Delivery/ Shipping costs will only be applicable on Sourcewell participating entity, describe in detail the factory/ special order situations. These costs will be communicated to complete freight, shipping, and delivery program. and approved by the agency at the time of the order.

We do not mark up shipping costs.
65 Specifically describe freight, shipping, and delivery terms or Freight/ Delivery/ Shipping costs to Alaska and Hawaii will only be programs available for Alaska, Hawaii, Canada, or any applicable for factory/ special order items. Canada and offshore offshore delivery. delivery is not available at this time. 66 Describe any unique distribution and/ or delivery methods or Delivery is made by O'Reilly delivery team members in company options offered in your proposal. owned vehicles. Average delivery time is 21 minutes for items stocked in our local store. Items that are stocked in our DCs are available for next day delivery, if not earlier. This service is available to agencies that are within a 5 mile radius of an O'Reilly store location. For agencies just beyond this distance, scheduled deliveries may be a viable option. These situations would be addressed on a case by case basis by local store management.
67 Specifically describe any self- audit process or program that All current Sourcewell member' s O'Reilly accounts are loaded to what you plan to employ to verify compliance with your O'Reilly calls a ' Group Code'. This group code automatically applies proposed agreement with Sourcewell. This process includes contracted pricing to the customer and ensures they are represented ensuring that Sourcewell participating entities obtain the on any contracted reporting. proper pricing. Whenever a new account signs up for O'Reilly' s Sourcewell program, they will also be added to the Sourcewell group code so that pricing can be applied and they will show up on future reporting.

To properly ensure an entity is registered with O'Reilly' s Sourcewell program, they must have an O'Reilly account number. This does not require a credit application to obtain an account number. The entity can call or visit their local O'Reilly store to sign up for an account. 68 If you are awarded an agreement, provide a few examples We will measure the success of this contract based on how many of internal metrics that will be tracked to measure whether new entities we can sign up on this program and how existing you are having success with the agreement. entities on the Sourcewell program perform year over year. Since we already have a contract in place with Sourcewell, we are able to measure this based on historical data.

Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 282
Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 8471244EEB86 69 Provide a proposed Administration Fee payable to O'Reilly is proposing a 1 % Administration Fee, which will be paid Sourcewell. The Fee is in consideration for the support quarterty. and services provided by Sourcewell. The propose an
Administrative Fee will be payable to Sourcewell on all completed transactions to Participating Entities utilizing this * Agreement. The Administrative Fee will be calculated as a stated percentage, or flat fee as may be applicable, of all completed transactions utilizing this Master Agreement
within the preceding Reporting Period defined in the
agreement.

Table 7: Pricing Offered
70 The pricing offered is as good as or better than pricing typically offered through existing cooperative contracts, state Our proposed pricing is a contracts, or agencies. discount of O'Reilly List price * less 41 % or better.

Table 8A: Depth and Breadth of Offered Solutions ( 200 Points) 71 72
Provide a detailed description of all the
Solutions offered, including used, offered in
the proposal.

Within this RFP category there may be
subcategories of solutions. List subcategory
titles that best describe your products and
services.

Bid Number: RFP 100124
O'Reilly is offering its entire catalog with this proposal. This includes:
1) New and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts 2) Paint and Body
3) Heavy Duty Parts
4) Shop Equipment
5) Agricultural Products
6) Marine
7) Maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products
8) Accessories, such as floor mats, seat covers and truck accessories.

We are attaching a complete listing of our category, subcategory, item segment hierarchy under ' O'Reilly- Sourcewell Discount File'.

Vendor Name: O'Reilly Auto Enterprises LLC
283
Docusign Envelope ID: FF6432CA- 4544- 4D88- 9EA5- 8471244EEB86 Table 88: Depth and Breadth of Offered Solutions
General Instructions ( applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond " N/A" if the question does not apply to you ( preferably with an explanation).

Line Item Category or Type Offered* Comments
73 Air conditioning, heating, and other climate control r. Yes O'Reilly offers NC, heating, and other * , No climate control products.
74 Electrical ( alternators, starters, batteries, ignition r. Yes O'Reilly offers electrical components. * systems, etc.) , No
75 Automotive bearings ( wheel, roller ball, etc.) r. Yes O'Reilly offers Automotive Bearings. * , No
76 Automotive belts, hoses, gaskets, and seals r. Yes O'Reilly offers Automotive belts, * r No hoses, gaskets, and seals.
77 System components ( brakes, rotors, calipers, lines, r. Yes O'Reilly offers system components. * ABS, etc.) , No
78 Body and crash ( parts, bumpers, cab, chassis, r. Yes O'Reilly offers chassis products. door, panels, etc.) r No
79 Exhaust systems and emission parts r. Yes O'Reilly offers Exhaust and emission No parts.
80 Engine and drive train ( Internal Combustion Engine) r. Yes O'Reilly offers Engine and Drivetrain No products.
81 Engine and drive train ( Hybrid, EV, etc.) r. Yes O'Reilly offers products for Hybrid/ EV No vehicles.
82 Engine heating and cooling r. Yes O'Reilly offers Engine heating and r No cooling products.
83 Filters ( oil, fuel, air, transmission, etc.) r. Yes O'Reilly offers filters.

No
84 Oils and lubricants ( regular, synthetic, blend) r. Yes O'Reilly offers oils and lubricants of r No all varieties.
85 Pumps ( fuel, fluids, water, etc.) r. Yes O'Reilly offers pumps. r No
86 Safety and security systems r. Yes O'Reilly offers Safety and Security No Systems.
87 Vehicle interior/ exterior parts and accessories r. Yes O'Reilly offers Vehicle interior/ exterior No parts and accessories.
88 Electrical systems ( lamps, lighting, mirrors, wiring, r. Yes O'Reilly offers products for vehicle etc.) , No electrical systems.
89 Stabilization system components ( suspension, r. Yes O'Reilly offers stabilization system shocks, struts, leaf, camber, swing arm, ball/ UV , No components. joints, etc.)
90 Control systems components ( transmission, r. Yes O'Reilly offers control systems differential, traction, etc.) r No components.
91 Windshield ( wipers and windshield washer r. Yes O'Reilly offers windshield wipers and components) , No components.
92 Vehicle paint and primer r. Yes O'Reilly offers vehicle paint and No primer products.
93 Tires, OEM vehicle parts, and garage and fleet r. Yes O'Reilly does offer some OEM vehicle maintenance equipment, tools, and supplies as , No parts, equipment, tools, and supplies. described in RFP However, we do not offer tires.

Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 284
Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 84 71244EEB86 Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.

Documents
Ensure your submission document( s) conforms to the following:

1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document( s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document( s) cannot be opened and viewed by Sourcewell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing -, O'Reilly-Sourcewell Discount File.xlsx - Thursday September 26, 2024 11 :56:07 Financial Strength and Stability - O'Reilly Auto Parts 2023 Annual Report.pdf - Thursday September 26, 2024 11 :56: 19 Marketing Plan/Samples - O'Reilly Marketing Materials. pdf- Friday September 27, 2024 15:00:29 WMBE/MBE/SBE or Related Certificates ( optional)
Standard Transaction Document Samples - O'Reilly Credit App.pdf - Friday September 27, 2024 15:02:04 Requested Exceptions - O'Reilly-Sourcewell Redlined MSA.docx - Friday September 27, 202415: 03:04 Upload Additional Document - O'Reilly Auto Parts First Call Online.pdf - Friday September 27, 2024 14:59:30 Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 285
Docusign Envelope ID: FF6432CA- 4544- 408B- 9EA5- 8471244EEB86 Addenda, Terms and Conditions

PROPOSER AFFIDAVIT OF COMPLIANCE
I certify that I am an authorized representative of Proposer and have authority to submit the foregoing Proposal:

1. The Proposer is submitting this Proposal under its full and complete legal name, and the Proposer legally exists in good standing in the jurisdiction of its residence.

2. The Proposer warrants that the information provided in this Proposal is true, correct, and reliable for purposes of evaluation for award.

3. The Proposer certifies that:
1) The prices in this Proposal have been arrived at independently, without, for the purpose of restricting competition, any consultation, communication, or agreement with any other Proposer or competitor relating toi) Those prices; ii) The intention to submit an offer; or
iii) The methods or factors used to calculate the prices offered. 2) The prices in this Proposal have not been and will not be knowingly disclosed by the Proposer, directly or indirectly, to any other Proposer or competitor before award unless otherwise required by law; and 3) No attempt has been made or will be made by Proposer to induce any other concern to submit or not to submit a Proposal for the purpose of restricting competition.

4. To the best of its knowledge and belief, and except as otherwise disclosed in the Proposal, there are no relevant facts or circumstances which could give rise to an organizational conflict of interest. An organizational conflict of interest is created when a current or prospective supplier is unable to render impartial service to Sourcewell due to the supplier's: a. creation of evaluation criteria during performance of a prior agreement which potentially influences future competitive opportunities to its favor; b. access to nonpublic and. material information that may provide for a competitive advantage in a later procurement competition; c. impaired objectivity in providing advice to Sourcewell.

5. Proposer will provide to Sourcewell Participating Entities Solutions in accordance with the terms, conditions, and scope of a resulting master agreement.

6. The Proposer possesses, or will possess all applicable licenses or certifications necessary to deliver Solutions under any resulting master agreement.

7. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders.

8. Proposer its employees, agents, and subcontractors are not:

1. Included on the "Specially Designated Nationals and Blocked Persons" list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury found at: https://www treasury. gov/ofac/downloads/ sdnlist.pdf;

2. Included on the government- wide exclusions lists in the United States System for Award Management found at:
https://sam.gov/SAM/; or

3. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation. w By checking this box I acknowledge that I am bound by the terms of the Proposer' s Affidavit, have the legal authority to submit this Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. - Robert Fulp, Strategic Accounts Administrative Manager, O'Reilly Auto Enterprises, LLC
Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 286
Docusign Envelope ID: FF6432CA- 4544- 4D8B- 9EA5- 8471244EEB86 The Proposer declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Proposer foresees an actual or potential Conflict of Interest in performing the obligations contemplated in the solicitation proposal. r Yes r. No
The Bidder acknowledges and agrees that the addendum/ addenda below form part of the Bid Document.

Check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda.

File Name
Addendum_ 6_Aftermarket Vehicle Parts and Supplies_ RFP100124_ DRAFT Wed September 18 2024 09:27 AM
Addendum_ 5_Aftermarket Vehicle Parts and Supplies_ RFP100124_ DRAFT Mon September 9 2024 04:03 PM
Addendum_ 4_Aftermarket Vehicle Parts and Supplies_ RFP100124 Wed September 4 2024 01 :26 PM
Addendum_ 3_Aftermarket Vehicle Parts and Supplies_ RFP100124 Mon August 19 2024 07:25 AM
Addendum_ 2_Aftermarket Vehicle Parts and Supplies_ RFP100124 Fri August 16 2024 07:54 AM
Addendum_ 1_Aftermarket Vehicle Parts and Supplies_ RFP100124 Wed August 14 2024 08:43 AM
I have reviewed the
below addendum and
attachments ( if
applicable)
rv
rv
rv
rv
Pages
2 2
2 Bid Number: RFP 100124 Vendor Name: O'Reilly Auto Enterprises LLC 287
EXHIBIT "B"

CERTIFICATES OF INSURANCE
ATTACHED BELOW]
17 288

MASTER AGREEMENT FOR PURCHASE OF GOODS
(INCLUDING SOURCEWELL COOPERATIVE PURCHASES)

BY INDEPENDENT CONTRACTOR

THIS MASTER AGREEMENT FOR PURCHASE OF GOODS (INCLUDING SOURCEWELL COOPERATIVE PURCHASES) BY INDEPENDENT CONTR ACTOR ("Agreement") is made and effective as of
October 13th 2026 by and between the CITY OF BANNING,
a California municipal corporation ("City") whose address is 99 East Ramsey Street, Banning, California 92220, and AUTOZONE PARTS, INC., a Nevada Corporation whose address is 123 S. Front St., Memphis, TN 38103 (''Contractor"). City and Contractor are sometimes hereinafter individually referred to as '"party" and hereinafter collectively referred to as the "parties."

RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:

A. City desires to procure certain vehicle parts, supplies, and related incidental services (e.g., delivery, order support) through a cooperative purchasing program administered by Sourcewell, a Minnesota service cooperative.

B. Contractor is a vendor under a cooperative purchasing master agreement with Sourcewell, a governmental cooperative purchasing organization, pursuant to MASTER AGREEMENT #100124 CATEGORY: Aftermarket Vehicle Parts and Supplies SUPPLIER:

AutoZone Parts, Inc. ("Sourcewell Agreement"), which is attached hereto as Exhibit "A" and incorporated herein by this reference subject to Section 4. The parties intend that purchases of goods under this Agreement may be made pursuant to and in reliance upon the Sourcewell Agreement and applicable law.

C. This Agreement is intended to function as a master agreement governing ongoing purchase of goods, with specific transactions implemented through purchase orders, invoices, or similar transaction documents.

D. Contractor represents it possesses the necessary skills, licenses, certifications, qualifications, personnel, and equipment to perform its obligations under this Agreement. 1 289
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100124-AUZ
v052824 1
MASTER AGREEMENT #100124
CATEGORY: ŌĞƌŵĂƌŬĞƚsĞŚŝĐůĞWĂƌƚƐĂŶĚ^ƵƉƉůŝĞƐ
^hWW>/
Z͗ ƵƚŽŽŶĞWĂƌƚƐ͕/ŶĐ͘
This Master Agreement (Agreement) is between Sourcewell, ĂDŝŶŶĞƐŽƚĂƐĞƌǀŝĐĞĐŽŽƉĞƌĂƟǀĞlocated at 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and AutoZone Parts, Inc., 123 S.

Front St., Memphis, TN 38103 (Supplier).

Sourcewell is a ůŽĐĂůŐŽǀĞƌŶŵĞŶƚĂŶĚƐĞƌǀŝĐĞĐŽŽƉĞƌĂƟǀĞĐƌĞĂƚĞĚƵŶĚĞƌƚŚĞůĂǁƐŽĨƚŚĞ^ƚĂƚĞŽĨ DŝŶŶĞƐŽƚĂ;DŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞƐ^ĞĐƟŽŶϭϮϯ͘ϮϭͿŽīĞƌŝŶŐ a CŽŽƉĞƌĂƟǀĞPurchasing Program to eligible ƉĂƌƟĐŝƉĂƟŶŐŐŽǀĞƌŶŵĞŶƚĞŶƟƟĞƐ.

Under this Master Agreement entered with Sourcewell, Supplier will provide /ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ to WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƚŚƌŽƵŐŚ^ŽƵƌĐĞǁĞůů͛ƐCŽŽƉĞƌĂƟǀĞPurchasing Program. ƌƟĐůĞϭ͗
'ĞŶĞƌĂůdĞƌŵƐ
dŚĞ'ĞŶĞƌĂůdĞƌŵƐŝŶƚŚŝƐƌƟĐůĞϭĐŽŶƚƌŽůƚŚĞŽƉĞƌĂƟŽŶŽĨƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůů ĂŶĚ^ƵƉƉůŝĞƌĂŶĚĂƉƉůLJƚŽĂůůƚƌĂŶƐĂĐƟŽŶƐĞŶƚĞƌĞĚďLJ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ͘^ƵďƐĞƋƵĞŶƚ
ƌƟĐůĞƐƚŽƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚĐŽŶƚƌŽůƚŚĞƌŝŐŚƚƐĂŶĚŽďůŝŐĂƟŽŶƐĚŝƌĞĐƚůLJďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ ^ƵƉƉůŝĞƌ;ƌƟĐůĞϮͿ͕ĂŶĚďĞƚǁĞĞŶ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJ;ƌƟĐůĞϯͿ͕ƌĞƐƉĞĐƟǀĞůLJ͘dŚĞƐĞƌƟĐůĞϭ
General TĞƌŵƐĐŽŶƚƌŽůŽǀĞƌĂŶLJĐŽŶŇŝĐƟŶŐƚĞƌŵƐ͘tŚĞƌĞƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚŝƐƐŝůĞŶƚŽŶĂŶLJƐƵďũĞĐƚ͕ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĂŶĚ^ƵƉƉůŝĞƌƌĞƚĂŝŶƚŚĞĂďŝůŝƚLJƚŽŶĞŐŽƟĂƚĞŵƵƚƵĂůůLJĂĐĐĞƉƚĂďůĞƚĞƌŵƐ. 1) WƵƌƉŽƐĞ͘ Pursuant to Minnesota law, tŚĞ^ŽƵƌĐĞǁĞůůŽĂƌĚŽĨŝƌĞĐƚŽƌƐŚĂƐĂƵƚŚŽƌŝnjĞĚ ĂŽŽƉĞƌĂƟǀĞ Purchasing Program designed to provide PĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐǁŝƚŚĂĐĐĞƐƐƚŽĐŽŵƉĞƟƟǀĞůLJĂǁĂƌĚĞĚ
ĐŽŽƉĞƌĂƟǀĞƉƵƌĐŚĂƐŝŶŐagreements͘dŽĨĂĐŝůŝƚĂƚĞƚŚĞWƌŽŐƌĂŵ͕^ŽƵƌĐĞǁĞůůhas awarded Supplier this ĐŽŽƉĞƌĂƟǀĞƉƵƌĐŚĂƐŝŶŐDĂƐƚĞƌŐƌĞĞŵĞŶƚĨŽůůŽǁŝŶŐĂĐŽŵƉĞƟƟǀĞƉƌŽĐƵƌĞŵĞŶƚƉƌŽĐĞƐƐŝŶƚĞŶĚĞĚƚŽ ŵĞĞƚĐŽŵƉůŝĂŶĐĞƐƚĂŶĚĂƌĚƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚDŝŶŶĞƐŽƚĂůĂǁĂŶĚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐĐŽŶƚĂŝŶĞĚ herein.
2) /ŶƚĞŶƚ͘ dŚĞŝŶƚĞŶƚŽĨƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚŝƐƚŽĚĞĮŶĞƚŚĞƌŽůĞƐŽĨ^ŽƵƌĐĞǁĞůů͕^ƵƉƉůŝĞƌ͕ĂŶĚ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĂƐŝƚƌĞůĂƚĞƐƚŽ^ŽƵƌĐĞǁĞůů͛ƐŽŽƉĞƌĂƟǀĞWƵƌĐŚĂƐŝŶŐWƌŽŐƌĂŵ͘ 3) WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĐĐĞƐƐ͘ ^ŽƵƌĐĞǁĞůů͛ƐCŽŽƉĞƌĂƟǀĞPurchasing Program Master Agreements are ĂǀĂŝůĂďůĞƚŽĞůŝŐŝďůĞƉƵďůŝĐĂŐĞŶĐŝĞƐ;WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐͿ. WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͛ƐĂƵƚŚŽƌŝƚLJƚŽĂĐĐĞƐƐ
^ŽƵƌĐĞǁĞůů͛ƐCŽŽƉĞƌĂƟǀĞPurchasing PƌŽŐƌĂŵŝƐĚĞƚĞƌŵŝŶĞĚƚŚƌŽƵŐŚƚŚĞůĂǁƐŽĨŝƚƐƌĞƐƉĞĐƟǀĞ ũƵƌŝƐĚŝĐƟŽŶ͘
4) ^ƵƉƉůŝĞƌĐĐĞƐƐ͘ dŚĞ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐŽīĞƌĞĚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚŵĂLJďĞŵĂĚĞĂǀĂŝůĂďůĞƚŽĂŶLJ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͘^ƵƉƉůŝĞƌƵŶĚĞƌƐƚĂŶĚƐƚŚĂƚĂWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͛ƐƵƐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƐĂƚƚŚĞ
WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͛ƐƐŽůĞĐŽŶǀĞŶŝĞŶĐĞ͘^ƵƉƉůŝĞƌǁŝůůĞĚƵĐĂƚĞŝƚƐƐĂůĞƐĂŶĚƐĞƌǀŝĐĞĨŽƌĐĞƐĂďŽƵƚ ^ŽƵƌĐĞǁĞůůĞůŝŐŝďŝůŝƚLJƌĞƋƵŝƌĞŵĞŶƚƐĂŶĚƌĞƋƵŝƌĞĚĚŽĐƵŵĞŶƚĂƟŽŶ͘^ƵƉƉůŝĞƌǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌ ĞŶƐƵƌŝŶŐƐĂůĞƐĂƌĞǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ.







 

 















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5) dĞƌŵ͘ dŚŝƐŐƌĞĞŵĞŶƚŝƐĞīĞĐƟǀĞƵƉŽŶƚŚĞĚĂƚĞŽĨƚŚĞĮŶĂůƐŝŐŶĂƚƵƌĞďĞůŽǁ͘dŚĞƚĞƌŵŽĨƚŚŝƐ ŐƌĞĞŵĞŶƚŝƐĨŽƵƌ;ϰͿLJĞĂƌƐĨƌŽŵƚŚĞĞīĞĐƟǀĞĚĂƚĞ͘dŚĞŐƌĞĞŵĞŶƚĞdžƉŝƌĞƐĂƚϭϭ͗ϱϵW͘D͘ĞŶƚƌĂů Time on January 10, 2029͕ƵŶůĞƐƐŝƚŝƐĐĂŶĐĞůůĞĚŽƌĞdžƚĞŶĚĞĚĂƐĚĞĮŶĞĚŝŶƚŚŝƐŐƌĞĞŵĞŶƚ͘ a)
džƚĞŶƐŝŽŶƐ͘ Sourcewell and Supplier may agree to up to three (3) ĂĚĚŝƟŽŶĂůŽŶĞ-year extensions ďĞLJŽŶĚƚŚĞŽƌŝŐŝŶĂůĨŽƵƌ-LJĞĂƌƚĞƌŵ͘dŚĞƚŽƚĂůƉŽƐƐŝďůĞůĞŶŐƚŚŽĨƚŚŝƐŐƌĞĞŵĞŶƚǁŝůůďĞƐĞǀĞŶ(7) LJĞĂƌƐĨƌŽŵƚŚĞĞīĞĐƟǀĞĚĂƚĞ͘
b)
džĐĞƉƟŽŶĂůŝƌĐƵŵƐƚĂŶĐĞƐ͘ ^ŽƵƌĐĞǁĞůůƌĞƚĂŝŶƐƚŚĞƌŝŐŚƚƚŽĐŽŶƐŝĚĞƌĂĚĚŝƟŽŶĂůĞdžƚĞŶƐŝŽŶƐĂƐ ƌĞƋƵŝƌĞĚƵŶĚĞƌĞdžĐĞƉƟŽŶĂůĐŝƌĐƵŵƐƚĂŶĐĞƐ͘
6) ^ƵƌǀŝǀĂůŽĨdĞƌŵƐ͘ EŽƚǁŝƚŚƐƚĂŶĚŝŶŐƚŚĞƚĞƌŵŝŶĂƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕ƚŚĞŽďůŝŐĂƟŽŶƐŽĨƚŚŝƐ ŐƌĞĞŵĞŶƚǁŝůůĐŽŶƟŶƵĞƚŚƌŽƵŐŚƚŚĞƉĞƌĨŽƌŵĂŶĐĞƉĞƌŝŽĚŽĨĂŶLJƚƌĂŶƐĂĐƟŽŶĞŶƚĞƌĞĚbetween ^ƵƉƉůŝĞƌĂŶĚĂŶLJWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJďĞĨŽƌĞƚŚĞƚĞƌŵŝŶĂƟŽŶĚĂƚĞ͘
7) ^ĐŽƉĞ͘^ƵƉƉůŝĞƌŝƐĂǁĂƌĚĞĚĂDĂƐƚĞƌŐƌĞĞŵĞŶƚƚŽƉƌŽǀŝĚĞƚŚĞƐŽůƵƟŽŶƐŝĚĞŶƟĮĞĚŝŶ;^ŽůŝĐŝƚĂƟŽŶ #100124ͿƚŽWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ͘/Ŷ^ĐŽƉĞƐŽůƵƟŽŶƐŝŶĐůƵĚĞ͗
a) ŌĞƌŵĂƌŬĞƚƌĞƉĂŝƌ͕ƌĞƉůĂĐĞŵĞŶƚ͕ĂŶĚŵĂŝŶƚĞŶĂŶĐĞƉĂƌƚƐ͕ƐƵƉƉůŝĞƐ͕ĂŶĚƐĞƌǀŝĐĞƐĨŽƌŐĂƐŽůŝŶĞ͕ ĚŝĞƐĞů͕ĐŽŵƉƌĞƐƐĞĚŶĂƚƵƌĂůŐĂƐ;E'Ϳ͕ƉƌŽƉĂŶĞ͕ŚLJďƌŝĚ͕ĂŶĚĞůĞĐƚƌŝĐĂƵƚŽŵŽďŝůĞƐ͕ƐƉŽƌƚƵƟůŝƚLJ ǀĞŚŝĐůĞƐ;^hsͿ͕ůŝŐŚƚĚƵƚLJƚƌƵĐŬƐ͕ŵĞĚŝƵŵĚƵƚLJƚƌƵĐŬƐ͕ŚĞĂǀLJĚƵƚLJĂŶĚǀŽĐĂƟŽŶĂůƚƌƵĐŬƐ͕ďƵƐĞƐ͕ and motorcycles.
8) /ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ͘ ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůƚŽƚŚĞĂďŽǀĞƌĞĨĞƌĞŶĐĞĚZ&Wis incorporated into this Master ŐƌĞĞŵĞŶƚ͘KŶůLJƚŚŽƐĞ^ŽůƵƟŽŶƐŝŶĐůƵĚĞĚǁŝƚŚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůĂŶĚǁŝƚŚŝŶ^ĐŽƉĞ;/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐͿĂƌĞŝŶĐůƵĚĞĚǁŝƚŚŝŶƚŚĞŐƌĞĞŵĞŶƚĂŶĚŵĂLJďĞŽīĞƌĞĚƚŽWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ.
9) /ŶĚĞĮŶŝƚĞYƵĂŶƟƚLJ͘ dŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚĚĞĮŶĞƐĂŶŝŶĚĞĮŶŝƚĞƋƵĂŶƟƚLJŽĨƐĂůĞƐƚŽĞůŝŐŝďůĞ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ.
10) WƌŝĐŝŶŐ͘ WƌŝĐŝŶŐŝŶĨŽƌŵĂƟŽŶ;ŝŶĐůƵĚŝŶŐWƌŝĐŝŶŐĂŶĚĞůŝǀĞƌLJĂŶĚWƌŝĐŝŶŐKīĞƌĞĚtĂďůĞƐͿĨŽƌĂůů/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐǁŝƚŚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůŝƐŝŶĐŽƌƉŽƌĂƚĞĚŝŶƚŽƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚ͘ 11) EŽƚƚŽ
džĐĞĞĚWƌŝĐŝŶŐ͘ Suppliers may not exceed the prices listed in the current Pricing List ŽŶĮůĞ with Sourcewell ǁŚĞŶŽīĞƌŝŶŐ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐƚŽWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ͘WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐŵĂLJ
ƌĞƋƵĞƐƚĂĚũƵƐƚŵĞŶƚƐƚŽƉƌŝĐŝŶŐĚŝƌĞĐƚůLJĨƌŽŵ ^ƵƉƉůŝĞƌĚƵƌŝŶŐƚŚĞŶĞŐŽƟĂƟŽŶĂŶĚĞdžĞĐƵƟŽŶŽĨĂŶLJ ƚƌĂŶƐĂĐƟŽŶ.
12) KƉĞŶDĂƌŬĞƚ͘ ^ƵƉƉůŝĞƌ͛ƐŽƉĞŶŵĂƌŬĞƚƉƌŝĐŝŶŐprocess is included within its Proposal. 13) ^ƵƉƉůŝĞƌZĞƉƌĞƐĞŶƚĂƟŽŶƐ͗
i) ŽŵƉůŝĂŶĐĞ͘ ^ƵƉƉůŝĞƌƌĞƉƌĞƐĞŶƚƐĂŶĚǁĂƌƌĂŶƚƐŝƚǁŝůůƉƌŽǀŝĚĞĂůů/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ ƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚŝŶĨƵůůĐŽŵƉůŝĂŶĐĞǁŝƚŚĂƉƉůŝĐĂďůĞĨĞĚĞƌĂů͕ƐƚĂƚĞ͕ĂŶĚůŽĐĂůůĂǁƐĂŶĚ ƌĞŐƵůĂƟŽŶƐ͘







 

 















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ii) >ŝĐĞŶƐĞƐ͘ ƐĂƉƉůŝĐĂďůĞ͕^ƵƉƉůŝĞƌǁŝůůŵĂŝŶƚĂŝŶĂǀĂůŝĚƐƚĂƚƵƐŽŶĂůůƌĞƋƵŝƌĞĚĨĞĚĞƌĂů͕ƐƚĂƚĞ͕ ĂŶĚůŽĐĂůůŝĐĞŶƐĞƐ͕ďŽŶĚƐ͕ĂŶĚƉĞƌŵŝƚƐƌĞƋƵŝƌĞĚĨŽƌƚŚĞŽƉĞƌĂƟŽŶŽĨ^ƵƉƉůŝĞƌ͛ƐďƵƐŝŶĞƐƐǁŝƚŚ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ͘WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐŵĂLJƌĞƋƵĞƐƚĂůůƌĞůĞǀĂŶƚĚŽĐƵŵĞŶƚĂƟŽŶĚŝƌĞĐƚůLJĨƌŽŵ Supplier.
iii) ^ƵƉƉůŝĞƌtĂƌƌĂŶƚƐ͘ ^ƵƉƉůŝĞƌǁĂƌƌĂŶƚƐƚŚĂƚĂůů/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐĨƵƌŶŝƐŚĞĚƵŶĚĞƌƚŚŝƐ ŐƌĞĞŵĞŶƚĂƌĞĨƌĞĞĨƌŽŵůŝĞŶƐĂŶĚĞŶĐƵŵďƌĂŶĐĞƐ͕ĂŶĚĂƌĞĨƌĞĞĨƌŽŵĚĞĨĞĐƚƐŝŶĚĞƐŝŐŶ͕ŵĂƚĞƌŝĂůƐ͕ ĂŶĚǁŽƌŬŵĂŶƐŚŝƉ͘
14) ĂŶŬƌƵƉƚĐLJEŽƟĐĞƐ͘ ^ƵƉƉůŝĞƌĐĞƌƟĮĞƐĂŶĚǁĂƌƌĂŶƚƐŝƚŝƐŶŽƚĐƵƌƌĞŶƚůLJŝŶĂďĂŶŬƌƵƉƚĐLJƉƌŽĐĞĞĚŝŶŐ͘ ^ƵƉƉůŝĞƌŚĂƐĚŝƐĐůŽƐĞĚĂůůĐƵƌƌĞŶƚĂŶĚĐŽŵƉůĞƚĞĚďĂŶŬƌƵƉƚĐLJƉƌŽĐĞĞĚŝŶŐƐǁŝƚŚŝŶƚŚĞƉĂƐƚƐĞǀĞŶLJĞĂƌƐ ǁŝƚŚŝŶŝƚƐWƌŽƉŽƐĂů͘^ƵƉƉůŝĞƌŵƵƐƚƉƌŽǀŝĚĞŶŽƟĐĞŝŶǁƌŝƟŶŐƚŽ^ŽƵƌĐĞǁĞůůŝĨŝƚĞŶƚĞƌƐĂďĂŶŬƌƵƉƚĐLJ ƉƌŽĐĞĞĚŝŶŐĂƚĂŶLJƟŵĞĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘ 15) ĞďĂƌŵĞŶƚĂŶĚ^ƵƐƉĞŶƐŝŽŶ͘ ^ƵƉƉůŝĞƌĐĞƌƟĮĞƐĂŶĚǁĂƌƌĂŶƚƐƚŚĂƚŶĞŝƚŚĞƌŝƚŶŽƌŝƚƐƉƌŝŶĐŝƉĂůƐĂƌĞ ƉƌĞƐĞŶƚůLJĚĞďĂƌƌĞĚ͕ƐƵƐƉĞŶĚĞĚ͕ƉƌŽƉŽƐĞĚĨŽƌĚĞďĂƌŵĞŶƚ͕ĚĞĐůĂƌĞĚŝŶĞůŝŐŝďůĞ͕ŽƌǀŽůƵŶƚĂƌŝůLJĞdžĐůƵĚĞĚ ĨƌŽŵƉƌŽŐƌĂŵƐŽƉĞƌĂƚĞĚďLJƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂ͕ƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂůŐŽǀĞƌŶŵĞnt, or any WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͘^ƵƉƉůŝĞƌĐĞƌƟĮĞƐĂŶĚǁĂƌƌĂŶƚƐƚŚĂƚŶĞŝƚŚĞƌŝƚŶŽƌŝƚƐƉƌŝŶĐŝƉĂůƐŚĂǀĞďĞĞŶ ĐŽŶǀŝĐƚĞĚŽĨĂĐƌŝŵŝŶĂůŽīĞŶƐĞƌĞůĂƚĞĚƚŽƚŚĞƐƵďũĞĐƚŵĂƩĞƌŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌĨƵƌƚŚĞƌ warrants that it will pƌŽǀŝĚĞŝŵŵĞĚŝĂƚĞǁƌŝƩĞŶŶŽƟĐĞƚŽ^ŽƵƌĐĞǁĞůůŝĨƚŚŝƐĐĞƌƟĮĐĂƟŽŶĐŚĂŶŐĞƐĂƚ ĂŶLJƟŵĞĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
16) WƌŽǀŝƐŝŽŶƐĨŽƌŶŽŶ-hŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂůĞŶƟƚLJƉƌŽĐƵƌĞŵĞŶƚƐƵŶĚĞƌhŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂůĂǁĂƌĚƐ ŽƌŽƚŚĞƌĂǁĂƌĚƐ;ƉƉĞŶĚŝdž//ƚŽϮ͘&͘ZΑϮϬϬͿ͘ WĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐƚŚĂƚƵƐĞhŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂů
ŐƌĂŶƚŽƌŽƚŚĞƌĨĞĚĞƌĂůĨƵŶĚŝŶŐƚŽƉƵƌĐŚĂƐĞƐŽůƵƟŽŶƐĨƌŽŵƚŚŝƐŐƌĞĞŵĞŶƚŵĂLJďĞƐƵďũĞĐƚƚŽ ĂĚĚŝƟŽŶĂůƌĞƋƵŝƌĞŵĞŶƚƐŝŶĐůƵĚŝŶŐƚŚĞƉƌŽĐƵƌĞŵĞŶƚƐƚĂŶĚĂƌĚƐŽĨƚŚĞhŶŝĨŽƌŵĚŵŝŶŝƐƚƌĂƟǀĞ ZĞƋƵŝƌĞŵĞŶƚƐ͕ŽƐƚWƌŝŶĐŝƉůĞƐĂŶĚƵĚŝƚZĞƋƵŝƌĞŵĞŶƚƐĨŽƌ&ĞĚĞƌĂůǁĂƌĚƐ͕Ϯ͘&͘Z͘ΑϮϬϬ͘ WĂƌƟĐŝƉĂƟŶŐ
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E
;ϰϬh͘^͘͘Αϯϭϰϭ-ϯϭϰϴͿ͘ tŚĞŶƌĞƋƵŝƌĞĚďLJĨĞĚĞƌĂů
ƉƌŽŐƌĂŵůĞŐŝƐůĂƟŽŶ͕ĂůůƉƌŝŵĞĐŽŶƐƚƌƵĐƟŽŶĐŽŶƚƌĂĐƚƐŝŶĞdžĐĞƐƐŽĨΨϮ͕ϬϬϬĂǁĂƌĚĞĚďLJŶŽŶ-ĨĞĚĞƌĂů ĞŶƟƟĞƐŵƵƐƚŝŶĐůƵĚĞĂƉƌŽǀŝƐŝŽŶĨŽƌĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞĂǀŝƐ-ĂĐŽŶĐƚ;ϰϬh͘^͘͘Αϯϭϰϭ3144, and 3146-ϯϭϰϴͿĂƐƐƵƉƉůĞŵĞŶƚĞĚďLJĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌƌĞŐƵůĂƟŽŶƐ;Ϯϵ͘&͘Z͘Αϱ͕ ͞>ĂďŽƌ^ƚĂŶĚĂƌĚƐWƌŽǀŝƐŝŽŶƐƉƉůŝĐĂďůĞƚŽŽŶƚƌĂĐƚƐŽǀĞƌŝŶŐ&ĞĚĞƌĂůůLJ&ŝŶĂŶĐĞĚĂŶĚƐƐŝƐƚĞĚ ŽŶƐƚƌƵĐƟŽŶ͟Ϳ͘/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƐƚĂƚƵƚĞ͕ĐŽŶƚƌĂĐƚŽƌƐŵƵƐƚ ďĞƌĞƋƵŝƌĞĚƚŽƉĂLJǁĂŐĞƐƚŽ 






 

 















307
100124-AUZ
v052824 4
ůĂďŽƌĞƌƐĂŶĚŵĞĐŚĂŶŝĐƐĂƚĂƌĂƚĞŶŽƚůĞƐƐƚŚĂŶƚŚĞƉƌĞǀĂŝůŝŶŐǁĂŐĞƐƐƉĞĐŝĮĞĚŝŶĂǁĂŐĞ ĚĞƚĞƌŵŝŶĂƟŽŶŵĂĚĞďLJƚŚĞ^ĞĐƌĞƚĂƌLJŽĨ>ĂďŽƌ͘/ŶĂĚĚŝƟŽŶ͕ĐŽŶƚƌĂĐƚŽƌƐŵƵƐƚďĞƌĞƋƵŝƌĞĚƚŽƉĂLJ ǁĂŐĞƐŶŽƚůĞƐƐƚŚĂŶŽŶĐĞĂǁĞĞŬ͘dŚĞŶŽŶ-ĨĞĚĞƌĂůĞŶƟƚLJŵƵƐƚƉůĂĐĞĂĐŽƉLJ ŽĨƚŚĞĐƵƌƌĞŶƚ ƉƌĞǀĂŝůŝŶŐǁĂŐĞĚĞƚĞƌŵŝŶĂƟŽŶŝƐƐƵĞĚďLJƚŚĞĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌŝŶĞĂĐŚƐŽůŝĐŝƚĂƟŽŶ͘dŚĞ ĚĞĐŝƐŝŽŶƚŽĂǁĂƌĚĂĐŽŶƚƌĂĐƚŽƌƐƵďĐŽŶƚƌĂĐƚŵƵƐƚďĞĐŽŶĚŝƟŽŶĞĚƵƉŽŶƚŚĞĂĐĐĞƉƚĂŶĐĞŽĨƚŚĞ ǁĂŐĞĚĞƚĞƌŵŝŶĂƟŽŶ͘dŚĞŶŽŶ-ĨĞĚĞƌĂůĞŶƟƚLJŵƵƐƚƌĞƉŽƌƚĂůůƐƵƐƉĞĐƚĞĚŽƌƌĞƉŽƌƚĞĚǀŝŽůĂƟŽŶƐƚŽ ƚŚĞĨĞĚĞƌĂůĂǁĂƌĚŝŶŐĂŐĞŶĐLJ͘dŚĞĐŽŶƚƌĂĐƚƐŵƵƐƚĂůƐŽŝŶĐůƵĚĞĂƉƌŽǀŝƐŝŽŶĨŽƌĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞ ŽƉĞůĂŶĚ͞ŶƟ-<ŝĐŬďĂĐŬ͟Đƚ;ϰϬh͘^͘͘ΑϯϭϰϱͿ͕ĂƐƐƵƉƉůĞŵĞŶƚĞĚďLJĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌ ƌĞŐƵůĂƟŽŶƐ;Ϯϵ͘&͘Z͘Αϯ͕͞ŽŶƚƌĂĐƚŽƌƐĂŶĚ^ƵďĐŽŶƚƌĂĐƚŽƌƐŽŶWƵďůŝĐƵŝůĚŝŶŐŽƌWƵďůŝĐtŽƌŬ &ŝŶĂŶĐĞĚŝŶtŚŽůĞŽƌŝŶWĂƌƚďLJ>ŽĂŶƐŽƌ'ƌĂŶƚƐĨƌŽŵƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͟Ϳ͘dŚĞĐƚƉƌŽǀŝĚĞƐƚŚĂƚ ĞĂĐŚĐŽŶƚƌĂĐƚŽƌŽƌƐƵďƌĞĐŝƉŝĞŶƚŵƵƐƚďĞƉƌŽŚŝďŝƚĞĚĨƌŽŵŝŶĚƵĐŝŶŐ͕ďLJĂŶLJŵĞĂŶƐ͕ĂŶLJƉĞƌƐŽŶ employed iŶƚŚĞĐŽŶƐƚƌƵĐƟŽŶ͕ĐŽŵƉůĞƟŽŶ͕ŽƌƌĞƉĂŝƌŽĨƉƵďůŝĐǁŽƌŬ͕ƚŽŐŝǀĞƵƉĂŶLJƉĂƌƚŽĨƚŚĞ ĐŽŵƉĞŶƐĂƟŽŶƚŽǁŚŝĐŚŚĞŽƌƐŚĞŝƐŽƚŚĞƌǁŝƐĞĞŶƟƚůĞĚ͘dŚĞŶŽŶ-ĨĞĚĞƌĂůĞŶƟƚLJŵƵƐƚƌĞƉŽƌƚĂůů ƐƵƐƉĞĐƚĞĚŽƌƌĞƉŽƌƚĞĚǀŝŽůĂƟŽŶƐƚŽƚŚĞĨĞĚĞƌĂůĂǁĂƌĚŝŶŐĂŐĞŶĐLJ͘^ƵƉƉůŝĞƌŵƵƐt comply with all ĂƉƉůŝĐĂďůĞĂǀŝƐ-Bacon Act provisions.
iii) KEdZdtKZ<,KhZ^E^&
dz^dEZ^d;ϰϬh͘^͘͘ΑϯϳϬϭ-ϯϳϬϴͿ͘
tŚĞƌĞĂƉƉůŝĐĂďůĞ͕ĂůůĐŽŶƚƌĂĐƚƐĂǁĂƌĚĞĚďLJƚŚĞŶŽŶ-ĨĞĚĞƌĂůĞŶƟƚLJŝŶĞdžĐĞƐƐŽĨΨϭϬϬ͕ϬϬϬƚŚĂƚ ŝŶǀŽůǀĞƚŚĞĞŵƉůŽLJŵĞŶƚŽĨŵĞĐŚĂŶŝĐƐŽƌůĂďŽƌĞƌƐŵƵƐƚŝŶĐůƵĚĞĂƉƌŽǀŝƐŝŽŶĨŽƌĐŽŵƉůŝĂŶĐĞǁŝƚŚ ϰϬh͘^͘͘ΑΑϯϳϬϮĂŶĚϯϳϬϰ͕ĂƐƐƵƉƉůĞŵĞŶƚĞĚďLJĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌƌĞŐƵůĂƟŽŶƐ;Ϯϵ͘&͘Z͘ΑϱͿ͘ hŶĚĞƌϰϬh͘^͘͘ΑϯϳϬϮŽĨƚŚĞĐƚ͕ĞĂĐŚĐŽŶƚƌĂĐƚŽƌŵƵƐƚďĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉƵƚĞƚŚĞǁĂŐĞƐŽĨ ĞǀĞƌLJŵĞĐŚĂŶŝĐĂŶĚůĂďŽƌĞƌŽŶƚŚĞďĂƐŝƐŽĨĂƐƚĂŶĚĂƌĚǁŽƌŬǁĞĞŬŽĨϰϬŚŽƵƌƐ͘tŽƌŬŝŶĞdžĐĞƐƐŽĨ ƚŚĞƐƚĂŶĚĂƌĚǁŽƌŬǁĞĞŬŝƐƉĞƌŵŝƐƐŝďůĞƉƌŽǀŝĚĞĚƚŚĂƚƚŚĞǁŽƌŬĞƌŝƐĐŽŵƉĞŶƐĂƚĞĚĂƚĂƌĂƚĞŽĨŶŽƚ ůĞƐƐƚŚĂŶŽŶĞĂŶĚĂŚĂůĨƟŵĞƐƚŚĞďĂƐŝĐƌĂƚĞŽĨƉĂLJĨŽƌĂůůŚŽƵƌƐǁŽƌŬĞĚŝŶĞdžĐĞƐƐŽĨϰϬŚŽƵƌƐŝŶ ƚŚĞǁŽƌŬǁĞĞŬ͘dŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨϰϬh͘^͘͘ΑϯϳϬϰĂƌĞĂƉƉůŝĐĂďůĞƚŽĐŽŶƐƚƌƵĐƟŽŶǁŽƌŬĂŶĚ ƉƌŽǀŝĚĞƚŚĂƚŶŽůĂďŽƌĞƌŽƌŵĞĐŚĂŶŝĐŵƵƐƚďĞƌĞƋƵŝƌĞĚƚŽǁŽƌŬŝŶƐƵƌƌŽƵŶĚŝŶŐƐŽƌƵŶĚĞƌǁŽƌŬŝŶŐ ĐŽŶĚŝƟŽŶƐǁŚŝĐŚĂƌĞƵŶƐĂŶŝƚĂƌLJ͕ŚĂnjĂƌĚŽƵƐŽƌĚĂŶŐĞƌŽƵƐ͘dŚĞƐĞƌĞƋƵŝƌĞŵĞŶƚƐĚŽŶŽƚĂƉƉůLJƚŽ the purchases ŽĨƐƵƉƉůŝĞƐ͕ŵĂƚĞƌŝĂůƐ͕ŽƌĂƌƟĐůĞƐŽƌĚŝŶĂƌŝůLJĂǀĂŝůĂďůĞŽŶƚŚĞŽƉĞŶŵĂƌŬĞƚ͕Žƌ ĐŽŶƚƌĂĐƚƐĨŽƌƚƌĂŶƐƉŽƌƚĂƟŽŶŽƌƚƌĂŶƐŵŝƐƐŝŽŶŽĨŝŶƚĞůůŝŐĞŶĐĞ͘dŚŝƐƉƌŽǀŝƐŝŽŶŝƐŚĞƌĞďLJŝŶĐŽƌƉŽƌĂƚĞĚ ďLJƌĞĨĞƌĞŶĐĞŝŶƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌĐĞƌƟĮĞƐƚŚĂƚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨĂŶĂǁĂƌĚĨŽƌĂůů ŐƌĞĞŵĞŶƚƐďLJ^ŽƵƌĐĞǁĞůůƌĞƐƵůƟŶŐĨƌŽŵƚŚŝƐƉƌŽĐƵƌĞŵĞŶƚƉƌŽĐĞƐƐ͕^ƵƉƉůŝĞƌŵƵƐƚĐŽŵƉůLJǁŝƚŚ ĂƉƉůŝĐĂďůĞƌĞƋƵŝƌĞŵĞŶƚƐĂƐƌĞĨĞƌĞŶĐĞĚĂďŽǀĞ͘
iv) Z/',d^dK/Es
Ed/KE^D
hE
ZKEdZdKZ'Z

D
Ed͘ /ĨƚŚĞĨĞĚĞƌĂů
ĂǁĂƌĚŵĞĞƚƐƚŚĞĚĞĮŶŝƟŽŶŽĨ͞ĨƵŶĚŝŶŐĂŐƌĞĞŵĞŶƚ͟ƵŶĚĞƌϯϳ͘&͘Z͘ΑϰϬϭ͘Ϯ;ĂͿĂŶĚƚŚĞƌĞĐŝƉŝĞŶƚ ŽƌƐƵďƌĞĐŝƉŝĞŶƚǁŝƐŚĞƐƚŽĞŶƚĞƌŝŶƚŽĂĐŽŶƚƌĂĐƚǁŝƚŚĂƐŵĂůůďƵƐŝŶĞƐƐĮƌŵŽƌŶŽŶƉƌŽĮƚ ŽƌŐĂŶŝnjĂƟŽŶƌĞŐĂƌĚŝŶŐƚŚĞƐƵďƐƟƚƵƟŽŶŽĨƉĂƌƟĞƐ͕ĂƐƐŝŐŶŵĞŶƚŽƌƉĞƌĨŽƌŵĂŶĐĞŽĨĞdžƉĞƌŝŵĞŶƚĂů͕ ĚĞǀĞůŽƉŵĞŶƚĂů͕ŽƌƌĞƐĞĂƌĐŚǁŽƌŬƵŶĚĞƌƚŚĂƚ͞ĨƵŶĚŝŶŐĂŐƌĞĞŵĞŶƚ͕͟ƚŚĞƌĞĐŝƉŝĞŶƚŽƌƐƵďƌĞĐŝƉŝĞŶƚ ŵƵƐƚĐŽŵƉůLJǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨϯϳ͘&͘Z͘ΑϰϬϭ͕͞ZŝŐŚƚƐƚŽ/ŶǀĞŶƟŽŶƐDĂĚĞďLJEŽŶƉƌŽĮƚ KƌŐĂŶŝnjĂƟŽŶƐĂŶĚ^ŵĂůůƵƐŝŶĞƐƐ&ŝƌŵƐhŶĚĞƌ'ŽǀĞƌŶŵĞŶƚ'ƌĂŶƚƐ͕ŽŶƚƌĂĐƚƐĂŶĚŽŽƉĞƌĂƟǀĞ ŐƌĞĞŵĞŶƚƐ͕͟ĂŶĚĂŶLJŝŵƉůĞŵĞŶƟŶŐƌĞŐƵůĂƟŽŶƐŝƐƐƵĞĚďLJƚŚĞĂǁĂƌĚŝŶŐĂŐĞŶĐLJ͘^ƵƉƉůŝĞƌ ĐĞƌƟĮĞƐƚŚĂƚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨĂŶĂǁĂƌĚĨŽƌĂůůŐƌĞĞŵĞŶƚƐďLJ^ŽƵƌĐĞǁĞůůƌĞƐƵůƟŶŐĨƌŽŵƚŚŝƐ ƉƌŽĐƵƌĞŵĞŶƚƉƌŽĐĞƐƐ͕^ƵƉƉůŝĞƌŵƵƐƚĐŽŵƉůLJǁŝƚŚĂƉƉůŝĐĂďůĞƌĞƋƵŝƌĞŵĞŶƚƐĂƐƌĞĨĞƌĞŶĐĞĚĂďŽǀĞ͘ v) >
E/Zd;ϰϮh͘^͘͘ΑϳϰϬϭ-ϳϲϳϭY͘ͿEd,
&

Z>td
ZWK>>hd/KE
KEdZK>d;ϯϯh͘^͘͘ΑϭϮϱϭ-ϭϯϴϳͿ͘ ŽŶƚƌĂĐƚƐĂŶĚƐƵďŐƌĂŶƚƐŽĨĂŵŽƵŶƚƐŝŶĞdžĐĞƐƐŽĨ ΨϭϱϬ͕ϬϬϬƌĞƋƵŝƌĞƚŚĞŶŽŶ-ĨĞĚĞƌĂůĂǁĂƌĚƚŽĂŐƌĞĞƚŽĐŽŵƉůLJǁŝƚŚĂůůĂƉƉůŝĐĂďůĞƐƚĂŶĚĂƌĚƐ͕ŽƌĚĞƌƐ ŽƌƌĞŐƵůĂƟŽŶƐŝƐƐƵĞĚƉƵƌƐƵĂŶƚƚŽƚŚĞůĞĂŶŝƌĐƚ;ϰϮh͘^͘͘ΑϳϰϬϭ- ϳϲϳϭƋͿĂŶĚƚŚĞ&ĞĚĞƌĂů 






 

 















308
100124-AUZ
v052824 5
tĂƚĞƌWŽůůƵƟŽŶŽŶƚƌŽůĐƚĂƐĂŵĞŶĚĞĚ;ϯϯh͘^͘͘ΑϭϮϱϭ- ϭϯϴϳͿ͘sŝŽůĂƟŽŶƐŵƵƐƚďĞƌĞƉŽƌƚĞĚƚŽ ƚŚĞ&ĞĚĞƌĂůĂǁĂƌĚŝŶŐĂŐĞŶĐLJĂŶĚƚŚĞZĞŐŝŽŶĂůKĸĐĞŽĨƚŚĞ ŶǀŝƌŽŶŵĞŶƚĂůWƌŽƚĞĐƟŽŶŐĞŶĐLJ
;
WͿ͘^ƵƉƉůŝĞƌĐĞƌƟĮĞƐƚŚĂƚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƚǁill comply with applicable ƌĞƋƵŝƌĞŵĞŶƚƐĂƐƌĞĨĞƌĞŶĐĞĚĂďŽǀĞ͘
vi) 
ZD
EdE^h^W
E^/KE;
y
hd/s
KZ
Z^ϭϮϱϰϵEϭϮϲϴϵͿ͘ A contract
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džĞĐƵƟǀĞKƌĚĞƌƐϭϮϱϰϵ;ϯ͘&͘Z͘ΑϭϵϴϲŽŵƉ͕͘Ɖ͘ϭϴϵͿĂŶĚ ϭϮϲϴϵ;ϯ͘&͘Z͘ΑϭϵϴϵŽŵƉ͕͘Ɖ͘ϮϯϱͿ͕͞ĞďĂƌŵĞŶƚĂŶĚ^ƵƐƉĞŶƐŝŽŶ͘͟^D džĐůƵƐŝŽŶƐĐŽŶƚĂŝŶƐ
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ŶƟƚLJĂƌĞĂďůĞƚŽĂƐƐĞƐƐƚŚĞĂĐƚƵĂůŽƌƉŽƚĞŶƟĂůĐŽŶŇŝĐƚ͖ĂŶĚƉƌŽǀŝĚĞĂŶLJĂĚĚŝƟŽŶĂů ŝŶĨŽƌŵĂƟŽŶĂƐŶĞĐĞƐƐĂƌLJŽƌƌĞƋƵĞƐƚĞĚ͘
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Ed^͘ To the extent applicable, Supplier
ĐĞƌƟĮĞƐƚŚĂƚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕^ƵƉƉůŝĞƌǁŝůůĐŽŵƉůLJǁŝƚŚĂƉƉůŝĐĂďůĞ ƌĞƋƵŝƌĞŵĞŶƚƐŽĨϮ͘&͘Z͘ΑϮϬϬ͘ϯϮϮ͘







 

 















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ƌƟĐůĞϮ͗
^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌKďůŝŐĂƟŽŶƐ
dŚĞdĞƌŵƐŝŶƚŚŝƐƌƟĐůĞϮƌĞůĂƚĞƐƉĞĐŝĮĐĂůůLJƚŽ^ŽƵƌĐĞǁĞůůĂŶĚŝƚƐĂĚŵŝŶŝƐƚƌĂƟŽŶŽĨƚŚŝƐDĂƐƚĞƌ ŐƌĞĞŵĞŶƚǁŝƚŚ^ƵƉƉůŝĞƌĂŶĚ^ƵƉƉůŝĞƌ͛ƐŽďůŝŐĂƟŽŶƐƚŚĞƌĞƵŶĚĞƌ͘ 1) ƵƚŚŽƌŝnjĞĚ^ĞůůĞƌƐ͘^ƵƉƉůŝĞƌŵƵƐƚƉƌŽǀŝĚĞ^ŽƵƌĐĞǁĞůůĂĐƵƌƌĞŶƚŵĞĂŶƐƚŽǀĂůŝĚĂƚĞŽƌĂƵƚŚĞŶƟĐĂƚĞ ^ƵƉƉůŝĞƌ͛ƐĂƵƚŚŽƌŝnjĞĚĚĞĂůĞƌƐ͕ĚŝƐƚƌŝďƵƚŽƌƐ͕ŽƌƌĞƐĞůůĞƌƐǁŚŝĐŚŵĂLJĐŽŵƉůĞƚĞƚƌĂŶƐĂĐƟŽŶƐŽĨ/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐŽīĞƌĞĚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͘^ŽƵƌĐĞǁĞůůŵĂLJƌĞƋƵĞƐƚƵƉĚĂƚĞĚŝŶĨŽƌŵĂƟŽŶŝŶŝƚƐ ĚŝƐĐƌĞƟŽŶ͕ĂŶĚ^ƵƉƉůŝĞƌĂŐƌĞĞƐƚŽƉƌŽǀŝĚĞƌĞƋƵĞƐƚĞĚŝŶĨŽƌŵĂƟŽŶǁŝƚŚŝŶĂƌĞĂƐŽŶĂďůĞƟŵĞ͘ 2) WƌŽĚƵĐƚĂŶĚWƌŝĐĞŚĂŶŐĞƐZĞƋƵŝƌĞŵĞŶƚƐ͘ ^ƵƉƉůŝĞƌŵĂLJƌĞƋƵĞƐƚ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐĐŚĂŶŐĞƐ͕ ĂĚĚŝƟŽŶƐ͕ŽƌĚĞůĞƟŽŶƐĂƚĂŶLJƟŵĞ͘ůůƌĞƋƵĞƐƚƐŵƵƐƚďĞŵĂĚĞŝŶǁƌŝƟŶŐďLJƐƵďŵŝƫŶŐĂ^ŽƵƌĐĞǁĞůů WƌŝĐĞĂŶĚWƌŽĚƵĐƚŚĂŶŐĞZĞƋƵĞƐƚ&ŽƌŵƚŽ^ŽƵƌĐĞǁĞůů͘ƚĂŵŝŶŝŵƵŵ͕ƚŚĞƌĞƋƵĞƐƚŵƵƐƚ͗ x /ĚĞŶƟĨLJƚŚĞĂƉƉůŝĐĂďůĞ^ŽƵƌĐĞǁĞůůŐƌĞĞŵĞŶƚŶƵŵďĞƌ͖
x ůĞĂƌůLJƐƉĞĐŝĨLJƚŚĞƌĞƋƵĞƐƚĞĚĐŚĂŶŐĞ͖
x WƌŽǀŝĚĞƐƵĸĐŝĞŶƚĚĞƚĂŝůƚŽũƵƐƟĨLJƚŚĞƌĞƋƵĞƐƚĞĚĐŚĂŶŐĞ͖ x /ŶĚŝǀŝĚƵĂůůLJůŝƐƚĂůů/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐĂīĞĐƚĞĚďLJƚŚĞƌĞƋƵĞƐƚĞĚĐŚĂŶŐĞ͕ĂůŽŶŐǁŝƚŚƚŚĞ ƌĞƋƵĞƐƚĞĚĐŚĂŶŐĞ;Ğ͘Ő͕͘ĂĚĚŝƟŽŶ͕ĚĞůĞƟŽŶ͕ƉƌŝĐĞĐŚĂŶŐĞͿ͖ĂŶĚ x /ŶĐůƵĚĞĂĐŽŵƉůĞƚĞƌĞƐƚĂƚĞŵĞŶƚŽĨWƌŝĐŝŶŐ>ŝƐƚǁŝƚŚƚŚĞĞīĞĐƟǀĞĚĂƚĞŽĨƚŚĞŵŽĚŝĮĞĚƉƌŝĐŝŶŐ͕ ŽƌƉƌŽĚƵĐƚĂĚĚŝƟŽŶŽƌĚĞůĞƟŽŶ͘dŚĞŶĞǁƉƌŝĐŝŶŐƌĞƐƚĂƚĞŵĞŶƚŵƵƐƚŝŶĐůƵĚĞĂůů/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐŽīĞƌĞĚ͕ĞǀĞŶĨŽƌƚŚŽƐĞŝƚĞŵƐǁŚĞƌĞƉƌŝĐŝŶŐƌĞŵĂŝŶƐƵŶĐŚĂŶŐĞĚ͘ ĨƵůůLJĞdžĞĐƵƚĞĚ^ŽƵƌĐĞǁĞůůWƌŝĐĞĂŶĚWƌŽĚƵĐƚŚĂŶŐĞZĞƋƵĞƐƚ&ŽƌŵǁŝůůďĞĐŽŵĞĂŶĂŵĞŶĚŵĞŶƚƚŽ ƚŚŝƐŐƌĞĞŵĞŶƚĂŶĚǁŝůůďĞŝŶĐŽƌƉŽƌĂƚĞĚďLJƌĞĨĞƌĞŶĐĞ͘
3) ƵƚŚŽƌŝnjĞĚZĞƉƌĞƐĞŶƚĂƟǀĞ͘ ^ƵƉƉůŝĞƌǁŝůůĂƐƐŝŐŶĂŶƵƚŚŽƌŝnjĞĚZĞƉƌĞƐĞŶƚĂƟǀĞƚŽ^ŽƵƌĐĞǁĞůůĨŽƌƚŚŝƐ ŐƌĞĞŵĞŶƚĂŶĚŵƵƐƚƉƌŽǀŝĚĞƉƌŽŵƉƚŶŽƟĐĞƚŽ^ŽƵƌĐĞǁĞůůŝĨƚŚĂƚƉĞƌƐŽŶŝƐĐŚĂŶŐĞĚ͘dŚĞƵƚŚŽƌŝnjĞĚ ZĞƉƌĞƐĞŶƚĂƟǀĞǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌ͗
x DĂŝŶƚĞŶĂŶĐĞĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͖
x dŝŵĞůLJƌĞƐƉŽŶƐĞƚŽĂůů^ŽƵƌĐĞǁĞůůĂŶĚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŝŶƋƵŝƌŝĞƐ͖ĂŶĚ
x WĂƌƟĐŝƉĂƟŽŶŝŶƌĞǀŝĞǁƐǁŝƚŚ^ŽƵƌĐĞǁĞůů͘
^ŽƵƌĐĞǁĞůůΖƐƵƚŚŽƌŝnjĞĚZĞƉƌĞƐĞŶƚĂƟǀĞŝƐŝƚƐŚŝĞĨWƌŽĐƵƌĞŵĞŶƚKĸĐĞƌ͘ 4) WĞƌĨŽƌŵĂŶĐĞZĞǀŝĞǁƐ͘ ^ƵƉƉůŝĞƌǁŝůůƉĞƌĨŽƌŵĂŵŝŶŝŵƵŵŽĨŽŶĞƌĞǀŝĞǁǁŝƚŚ^ŽƵƌĐĞǁĞůůƉĞƌ ĂŐƌĞĞŵĞŶƚLJĞĂƌ͘dŚĞƌĞǀŝĞǁǁŝůůĐŽǀĞƌƚƌĂŶƐĂĐƟŽŶƐƚŽWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ͕ƉƌŝĐŝŶŐĂŶĚƚĞƌŵƐ͕
ĂĚŵŝŶŝƐƚƌĂƟǀĞĨĞĞƐ͕ƐĂůĞƐĚĂƚĂƌĞƉŽƌƚƐ͕ƉĞƌĨŽƌŵĂŶĐĞŝƐƐƵĞƐ͕ƐƵƉƉůLJĐŚĂŝŶŝƐƐƵĞƐ͕ĐƵƐƚŽŵĞƌŝssues, and ĂŶLJŽƚŚĞƌŶĞĐĞƐƐĂƌLJŝŶĨŽƌŵĂƟŽŶ͘
5) ^ĂůĞƐZĞƉŽƌƟŶŐZĞƋƵŝƌĞĚ͘ ^ƵƉƉůŝĞƌŝƐƌĞƋƵŝƌĞĚĂƐĂŵĂƚĞƌŝĂůĞůĞŵĞŶƚƚŽƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚƚŽ ƌĞƉŽƌƚĂůůĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƵƟůŝnjŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͘&ĂŝůƵƌĞƚŽ
ƉƌŽǀŝĚĞĐŽŵƉůĞƚĞĂŶĚĂĐĐƵƌĂƚĞƌĞƉŽƌƚƐĂƐĚĞĮŶĞĚŚĞƌĞŝŶǁŝůůďĞĂŵĂƚĞƌŝĂůďƌĞĂĐŚŽĨthe Agreement ĂŶĚ^ŽƵƌĐĞǁĞůůƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽƉƵƌƐƵĞĂůůƌĞŵĞĚŝĞƐĂǀĂŝůĂďůĞĂƚůĂǁŝŶĐůƵĚŝŶŐĐĂŶĐĞůůĂƟŽŶŽĨ this Agreement.







 

 















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6) ZĞƉŽƌƟŶŐZĞƋƵŝƌĞŵĞŶƚƐ͘ ^ƵƉƉůŝĞƌŵƵƐƚƉƌŽǀŝĚĞ^ŽƵƌĐĞǁĞůůĂŶĂĐƟǀŝƚLJƌĞƉŽƌƚŽĨĂůůƚƌĂŶƐĂĐƟŽŶƐ ĐŽŵƉůĞƚĞĚƵƟůŝnjŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͘ZĞƉŽƌƚƐĂƌĞĚƵĞĂƚůĞĂƐƚŽŶĐĞĞĂĐŚĐĂůĞŶĚĂƌƋƵĂƌƚĞƌ;ZĞƉŽƌƟŶŐ WĞƌŝŽĚͿ͘ZĞƉŽƌƚƐŵƵƐƚďĞƌĞĐĞŝǀĞĚŶŽůĂƚĞƌƚŚĂŶϰϱĐĂůĞŶĚĂƌĚĂLJƐĂŌĞƌƚŚĞĞŶĚŽĨĞĂch calendar ƋƵĂƌƚĞƌ͘^ƵƉƉůŝĞƌŵĂLJƌĞƉŽƌƚŽŶĂŵŽƌĞĨƌĞƋƵĞŶƚďĂƐŝƐŝŶŝƚƐĚŝƐĐƌĞƟŽŶ͘ZĞƉŽƌƚƐŵƵƐƚďĞƉƌŽǀŝĚĞĚ ƌĞŐĂƌĚůĞƐƐŽĨƚŚĞĂŵŽƵŶƚŽĨĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐĚƵƌŝŶŐƚŚĂƚƋƵĂƌƚĞƌ;ŝ͘Ğ͕͘ŝĨƚŚĞƌĞĂƌĞŶŽƐĂůĞƐ͕ Supplier must submit a ƌĞƉŽƌƚŝŶĚŝĐĂƟŶŐŶŽƐĂůĞƐǁĞƌĞŵĂĚĞͿ͘ dŚĞZĞƉŽƌƚŵƵƐƚĐŽŶƚĂŝŶƚŚĞĨŽůůŽǁŝŶŐĮĞůĚƐ͗
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJEĂŵĞ;Ğ͘Ő͕͘ŝƚLJŽĨ^ƚĂƉůĞƐ,ŝŐŚǁĂLJĞƉĂƌƚŵĞŶƚͿ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJWŚLJƐŝĐĂů^ƚƌĞĞƚĚĚƌĞƐƐ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŝƚLJ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ^ƚĂƚĞͬWƌŽǀŝŶĐĞ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŝƉͬWŽƐƚĂůŽĚĞ͖
x ^ŽƵƌĐĞǁĞůůWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĐĐŽƵŶƚEƵŵďĞƌ͖
x dƌĂŶƐĂĐƟŽŶĞƐĐƌŝƉƟŽŶ͖
x dƌĂŶƐĂĐƟŽŶWƵƌĐŚĂƐĞĚWƌŝĐĞ͖
x ^ŽƵƌĐĞǁĞůůĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƉƉůŝĞĚ͖ĂŶĚ
x ĂƚĞdƌĂŶƐĂĐƟŽŶǁĂƐŝŶǀŽŝĐĞĚͬƐĂůĞǁĂƐƌĞĐŽŐŶŝnjĞĚĂƐƌĞǀĞŶƵĞďLJ^ƵƉƉůŝĞƌ͘ /ĨĐŽůůĞĐƚĞĚďLJ^ƵƉƉůŝĞƌ͕ƚŚĞZĞƉŽƌƚŵĂLJŝŶĐůƵĚĞƚŚĞĨŽůůŽǁŝŶŐĮĞůĚƐĂƐĂǀĂŝůĂďůĞ͗ x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŽŶƚĂĐƚEĂŵĞ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŽŶƚĂĐƚ
ŵĂŝůĚĚƌĞƐƐ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŽŶƚĂĐƚdĞůĞƉŚŽŶĞEƵŵďĞƌ͖
7) ĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞ͘ /ŶĐŽŶƐŝĚĞƌĂƟŽŶĨŽƌƚŚĞƐƵƉƉŽƌƚĂŶĚƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚďLJ^ŽƵƌĐĞǁĞůů͕^ƵƉƉůŝĞƌ ǁŝůůƉĂLJĂŶĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƚŽ^ŽƵƌĐĞǁĞůůŽŶĂůůĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐƚŽWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ
ƵƟůŝnjŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌǁŝůůŝŶĐůƵĚĞŝƚƐĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞǁŝƚŚin its proposed pricing. ^ƵƉƉůŝĞƌŵĂLJŶŽƚĚŝƌĞĐƚůLJĐŚĂƌŐĞWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƚŽŽīƐĞƚƚŚĞĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞ͘
8) &ĞĞĂůĐƵůĂƟŽŶ͘ ^ƵƉƉůŝĞƌ͛ƐĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƉĂLJĂďůĞƚŽ^ŽƵƌĐĞǁĞůůǁŝůůďĞĐĂůĐƵůĂƚĞĚĂƐĂƐƚĂƚĞĚ ƉĞƌĐĞŶƚĂŐĞ;ůŝƐƚĞĚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůͿŽĨĂůůĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐƵƟůŝnjŝŶŐƚŚŝƐDĂƐƚĞƌ ŐƌĞĞŵĞŶƚǁŝƚŚŝŶƚŚĞƉƌĞĐĞĚŝŶŐZĞƉŽƌƟŶŐWĞƌŝŽĚ͘&ŽƌĐĞƌƚĂŝŶĐĂƚĞŐŽƌŝĞƐ͕ĂŇĂƚĨĞĞŵĂLJďĞ ƉƌŽƉŽƐĞĚ͘dŚĞĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞǁŝůůďĞƐƚĂƚĞĚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂů͘ 9) &ĞĞZĞŵŝƩĂŶĐĞ͘ ^ƵƉƉůŝĞƌǁŝůůƌĞŵŝƚĨĞĞƚŽ^ŽƵƌĐĞǁĞůůŶŽůĂƚĞƌƚŚĂŶϰϱĐĂůĞŶĚĂƌĚĂLJƐĂŌĞƌƚŚĞĐůŽƐĞ ŽĨƚŚĞƉƌĞĐĞĚŝŶŐĐĂůĞŶĚĂƌƋƵĂƌƚĞƌŝŶĐŽŶũƵŶĐƟŽŶǁŝƚŚ^ƵƉƉůŝĞƌ͛ƐZĞƉŽƌƟŶŐWĞƌŝŽĚŽďůŝŐĂƟŽŶƐ ĚĞĮŶĞĚŚĞƌĞŝŶ͘WĂLJŵĞŶƚƐƐŚŽƵůĚŶŽƚĞƚŚĞ^ƵƉƉůŝĞƌ͛ƐŶĂŵĞĂŶĚ^ŽƵƌĐĞǁĞůů-assigned Agreement ŶƵŵďĞƌŝŶƚŚĞŵĞŵŽ͖ĂŶĚŵƵƐƚďĞĞŝƚŚĞƌŵĂŝůĞĚƚŽ^ŽƵƌĐĞǁĞůůĂďŽǀĞ͞ƩŶ͗ĐĐŽƵŶƚƐZĞĐĞŝǀĂďůĞ͟Žƌ ƌĞŵŝƩĞĚĞůĞĐƚƌŽŶŝĐĂůůLJƚŽ^ŽƵƌĐĞǁĞůů͛ƐďĂŶŬŝŶŐŝŶƐƟƚƵƟŽŶƉĞƌ^ŽƵƌĐĞǁĞůů͛Ɛ&ŝŶĂŶĐĞĚĞƉĂƌƚŵĞŶƚ ŝŶƐƚƌƵĐƟŽŶƐ͘
10) EŽŶĐŽŵƉůŝĂŶĐĞ͘ ^ŽƵƌĐĞǁĞůůƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽƐĞĞŬĂůůƌĞŵĞĚŝĞƐĂǀĂŝůĂďůĞĂƚůĂǁĨŽƌƵŶƉĂŝĚŽƌ ƵŶĚĞƌƉĂŝĚĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐĚƵĞƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͘&ĂŝůƵƌĞƚŽƌĞŵŝƚƉĂLJŵĞŶƚ͕ĚĞůŝŶƋƵĞŶƚ ƉĂLJŵĞŶƚƐ͕ƵŶĚĞƌƉĂLJŵĞŶƚƐ͕ŽƌŽƚŚĞƌĚĞǀŝĂƟŽŶƐĨƌŽŵƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚŝƐŐƌĞĞment may be ĚĞĞŵĞĚĂŵĂƚĞƌŝĂůďƌĞĂĐŚĂŶĚŵĂLJƌĞƐƵůƚŝŶĐĂŶĐĞůůĂƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚĂŶĚĚŝƐďĂƌŵĞŶƚĨƌŽŵ ĨƵƚƵƌĞŐƌĞĞŵĞŶƚƐ͘







 

 















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11) ƵĚŝƚZĞƋƵŝƌĞŵĞŶƚƐ͘ Pursuant to Minn. Stat. Α ϭϲ͘Ϭϱ͕ƐƵďĚŝǀŝƐŝŽŶϱ͕ƚŚĞŬƐ͕ƌĞĐŽƌĚƐ͕ ĚŽĐƵŵĞŶƚƐ͕ĂŶĚĂĐĐŽƵŶƟŶŐƉƌŽĐĞĚƵƌĞƐĂŶĚƉƌĂĐƟĐĞƐƌĞůĞǀĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚĂƌĞƐƵďũĞĐƚƚŽ ĞdžĂŵŝŶĂƟŽŶďLJ^ŽƵƌĐĞǁĞůůĂŶĚƚŚĞDŝŶŶĞƐŽƚĂ^ƚĂƚĞƵĚŝƚŽƌĨŽƌĂŵŝŶŝŵƵŵŽĨƐŝdžLJĞĂƌƐĨƌŽŵƚŚĞĞŶĚ ŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌĂŐƌĞĞƐƚŽĨƵůůLJĐŽŽƉĞƌĂƚĞǁŝƚŚ^ŽƵƌĐĞǁĞůůŝŶĂƵĚŝƟŶŐƚƌĂŶƐĂĐƟŽŶƐƵŶĚĞƌ ƚŚŝƐŐƌĞĞŵĞŶƚƚŽĞŶƐƵƌĞĐŽŵƉůŝĂŶĐĞǁŝƚŚƉƌŝĐŝŶŐƚĞƌŵƐ͕ĐŽƌƌĞĐƚĐĂůĐƵůĂƟŽŶĂŶĚƌĞŵŝƩĂŶĐĞŽĨ ĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐ͕ĂŶĚǀĞƌŝĮĐĂƟŽŶ ŽĨƚƌĂŶƐĂĐƟŽŶƐĂƐŵĂLJďĞƌĞƋƵĞƐƚĞĚďLJĂWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJŽƌ
Sourcewell.
12) ƐƐŝŐŶŵĞŶƚ͕dƌĂŶƐĨĞƌ͕ĂŶĚĚŵŝŶŝƐƚƌĂƟǀĞŚĂŶŐĞƐ͘^ƵƉƉůŝĞƌŵĂLJŶŽƚĂƐƐŝŐŶŽƌŽƚŚĞƌǁŝƐĞƚƌĂŶƐĨĞƌŝƚƐ ƌŝŐŚƚƐŽƌŽďůŝŐĂƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚǁŝƚŚŽƵƚƚŚĞƉƌŝŽƌǁƌŝƩĞŶĐŽŶƐĞŶƚŽĨ^ŽƵƌĐĞǁĞůů͘^ƵĐŚ consent will not be unreasonably withheld. Sourcewell reserves the right to unilaterally assign all or ƉŽƌƟŽŶƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚǁŝƚŚŝŶŝƚƐƐŽůĞĚŝƐĐƌĞƟŽŶƚŽĂĚĚƌĞƐƐĐŽƌƉŽƌĂƚĞƌĞƐƚƌƵĐƚƵƌŝŶŐƐ͕ŵĞƌŐĞƌƐ͕ ĂĐƋƵŝƐŝƟŽŶƐ͕ŽƌŽƚŚĞƌĐŚĂŶŐĞƐƚŽƚŚĞZĞƐƉŽŶƐŝďůĞWĂƌƚLJĂŶĚŶĂŵĞĚŝŶƚŚĞŐƌĞĞŵĞŶƚ͘ŶLJƉƌŽŚŝďŝƚĞĚ assignment is ŝŶǀĂůŝĚ͘hƉŽŶƌĞƋƵĞƐƚ^ŽƵƌĐĞǁĞůůŵĂLJŵĂŬĞĂĚŵŝŶŝƐƚƌĂƟǀĞĐŚĂŶŐĞƐƚŽĂŐƌĞĞŵĞŶƚ ĚŽĐƵŵĞŶƚĂƟŽŶƐƵĐŚĂƐŶĂŵĞĐŚĂŶŐĞƐ͕ĂĚĚƌĞƐƐĐŚĂŶŐĞƐ͕ĂŶĚŽƚŚĞƌŶŽŶ-material updates as ĚĞƚĞƌŵŝŶĞĚǁŝƚŚŝŶŝƚƐƐŽůĞĚŝƐĐƌĞƟŽŶ͘
13) ŵĞŶĚŵĞŶƚƐ͘ ŶLJŵĂƚĞƌŝĂůĐŚĂŶŐĞƚŽƚŚŝƐŐƌĞĞŵĞŶƚŵƵƐƚďĞĞdžĞĐƵƚĞĚŝŶǁƌŝƟŶŐƚŚƌŽƵŐŚĂŶ ĂŵĞŶĚŵĞŶƚĂŶĚǁŝůůŶŽƚďĞĞīĞĐƟǀĞƵŶƟůŝƚŚĂƐďĞĞŶĚƵůLJĞdžĞĐƵƚĞĚďLJƚŚĞƉĂƌƟĞƐ͘ 14) tĂŝǀĞƌ͘ &ĂŝůƵƌĞďLJ^ŽƵƌĐĞǁĞůůƚŽĞŶĨŽƌĐĞĂŶLJƌŝŐŚƚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚǁŝůůŶŽƚďĞĚĞĞŵĞĚĂǁĂŝǀĞƌ ŽĨƐƵĐŚƌŝŐŚƚŝŶƚŚĞĞǀĞŶƚŽĨƚŚĞĐŽŶƟŶƵĂƟŽŶŽƌƌĞƉĞƟƟŽŶŽĨƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐŐŝǀŝŶŐƌŝƐĞƚŽƐƵĐŚ right.
15) ŽŵƉůĞƚĞŐƌĞĞŵĞŶƚ͘ dŚŝƐŐƌĞĞŵĞŶƚƌĞƉƌĞƐĞŶƚƐƚŚĞĐŽŵƉůĞƚĞĂŐƌĞĞŵĞŶƚďĞƚǁĞĞŶƚŚĞƉĂƌƟĞƐĨŽƌ ƚŚĞƐĐŽƉĞĂƐĚĞĮŶĞĚŚĞƌĞŝŶ͘^ƵƉƉůŝĞƌĂŶĚ^ŽƵƌĐĞǁĞůůŵĂLJĞŶƚĞƌŝŶƚŽƐĞƉĂƌĂƚĞǁƌŝƩĞŶĂŐƌĞĞŵĞŶƚƐ ƌĞůĂƟŶŐƐƉĞĐŝĮĐĂůůLJƚŽƚƌĂŶƐĂĐƟŽŶƐŽƵƚƐŝĚĞŽĨƚŚĞƐĐŽƉĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘ 16) ZĞůĂƟŽŶƐŚŝƉŽĨ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌ͘ dŚŝƐŐƌĞĞŵĞŶƚĚŽĞƐŶŽƚĐƌĞĂƚĞĂƉĂƌƚŶĞƌƐŚŝƉ͕ũŽŝŶƚ ǀĞŶƚƵƌĞ͕ŽƌĂŶLJŽƚŚĞƌƌĞůĂƟŽŶƐŚŝƉƐƵĐŚĂƐĞŵƉůŽLJĞĞ͕ŝŶĚĞƉĞŶĚĞŶƚĐŽŶƚƌĂĐƚŽƌ͕ŵĂƐƚĞƌ-servant, or principal-agent.
17) /ŶĚĞŵŶŝĮĐĂƟŽŶ͘ ^ƵƉƉůŝĞƌŵƵƐƚŝŶĚĞŵŶŝĨLJ͕ĚĞĨĞŶĚ͕ƐĂǀĞ͕ĂŶĚŚŽůĚ^ŽƵƌĐĞǁĞůů͕ŝŶĐůƵĚŝŶŐƚŚĞŝƌĂŐĞŶƚƐ ĂŶĚĞŵƉůŽLJĞĞƐ͕ŚĂƌŵůĞƐƐĨƌŽŵĂŶLJĐůĂŝŵƐŽƌĐĂƵƐĞƐŽĨĂĐƟŽŶ͕ŝŶĐůƵĚŝŶŐĂƩŽƌŶĞLJƐ͛ĨĞĞƐŝŶĐƵƌƌĞĚďLJ ^ŽƵƌĐĞǁĞůů͕ĂƌŝƐŝŶŐŽƵƚŽĨĂŶLJĂĐƚŽƌŽŵŝƐƐŝŽŶŝŶƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐ Agreement by the Supplier ŽƌŝƚƐĂŐĞŶƚƐŽƌĞŵƉůŽLJĞĞƐ͖ƚŚŝƐŝŶĚĞŵŶŝĮĐĂƟŽŶŝŶĐůƵĚĞƐŝŶũƵƌLJŽƌĚĞĂƚŚƚŽƉĞƌƐŽŶ;ƐͿŽƌƉƌŽƉĞƌƚLJ ĂůůĞŐĞĚƚŽŚĂǀĞďĞĞŶĐĂƵƐĞĚďLJƐŽŵĞĚĞĨĞĐƚŝŶĚĞƐŝŐŶ͕ĐŽŶĚŝƟŽŶ͕ŽƌƉĞƌĨŽƌŵĂŶĐĞŽĨ/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͘EŽƚǁŝƚŚƐƚĂŶĚŝŶŐƚŚĞĨŽƌĞŐŽŝŶŐ͕^ƵƉƉůŝĞƌƐŚĂůůŶŽƚďĞƌĞƐƉŽŶƐŝďůĞĨŽƌ (i) ŝŵƉƌŽƉĞƌŝŶƐƚĂůůĂƟŽŶŽĨgoods by ĂWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͖Žƌ;ŝŝͿĂŶLJďƌĞĂĐŚŽĨĂŶĞdžƉƌĞƐƐƉƌŽĚƵĐƚ
warranty issued by ĂWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ ƚŽĂĐƵƐƚŽŵĞƌŽƌĞŶĚƵƐĞƌŽĨĂŶLJŽĨƚŚĞgoods that exceeds ĞŝƚŚĞƌƚŚĞƐĐŽƉĞŽĨƚŚĞŵĂŶƵĨĂĐƚƵƌĞƌƐ͛ĞdžƉƌĞƐƐǁĂƌƌĂŶƟĞƐŽƌƐƵĐŚŽƚŚĞƌǁĂƌƌĂŶƟĞƐƐĞƚĨŽƌƚŚŝŶƚŚe applicable, governing agreement or agreed to by Supplier ŝŶǁƌŝƟŶŐ͘ ^ŽƵƌĐĞǁĞůů͛ƐƌĞƐƉŽŶƐŝďŝůŝƚLJǁŝůů ďĞŐŽǀĞƌŶĞĚďLJƚŚĞ^ƚĂƚĞŽĨ DŝŶŶĞƐŽƚĂ͛ƐdŽƌƚ>ŝĂďŝůŝƚLJĐƚ;DŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞƐŚĂƉƚĞƌϰϲϲͿĂŶĚ other applicable law.
18) ĂƚĂWƌĂĐƟĐĞƐ͘ ^ƵƉƉůŝĞƌĂŶĚ^ŽƵƌĐĞǁĞůůĂĐŬŶŽǁůĞĚŐĞ^ŽƵƌĐĞǁĞůůŝƐƐƵďũĞĐƚƚŽƚŚĞDŝŶŶĞƐŽƚĂ 'ŽǀĞƌŶŵĞŶƚĂƚĂWƌĂĐƟĐĞƐĐƚ͕DŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞƐŚĂƉƚĞƌϭϯ͘ƐŝƚĂƉƉůŝĞƐƚŽĂůůĚĂƚĂĐƌĞĂƚĞĚĂŶĚ 






 

 















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ŵĂŝŶƚĂŝŶĞĚŝŶƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕^ƵƉƉůŝĞƌŵĂLJďĞƐƵďũĞĐƚƚŽƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚŝƐ chapter.
19) 'ƌĂŶƚŽĨ>ŝĐĞŶƐĞ͘
a) ƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͗
i) ^ƵƉƉůŝĞƌWƌŽŵŽƟŽŶ͘ Sourcewell grants to Supplier a royalty-ĨƌĞĞ͕ǁŽƌůĚǁŝĚĞ͕ŶŽŶ-exclusive ƌŝŐŚƚĂŶĚůŝĐĞŶƐĞƚŽƵƐĞƚŚĞƚƌĂĚĞŵĂƌŬ;ƐͿƉƌŽǀŝĚĞĚƚŽ^ƵƉƉůŝĞƌďLJ^ŽƵƌĐĞǁĞůůŝŶĂĚǀĞƌƟƐŝŶŐ͕ ƉƌŽŵŽƟŽŶĂůŵĂƚĞƌŝĂůƐ͕ĂŶĚŝŶĨŽƌŵĂƟŽŶĂůƐŝƚĞƐĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŵĂƌŬĞƟŶŐ^ŽƵƌĐĞǁĞůů͛Ɛ Agreement with Supplier.
ii) ^ŽƵƌĐĞǁĞůůWƌŽŵŽƟŽŶ͘ Supplier grants to Sourcewell a royalty-ĨƌĞĞ͕ǁŽƌůĚǁŝĚĞ͕ŶŽŶĞdžĐůƵƐŝǀĞƌŝŐŚƚĂŶĚůŝĐĞŶƐĞƚŽƵƐĞ^ƵƉƉůŝĞƌ͛ƐŶĂŵĞĂŶĚůŽŐŽŝŶĂĚǀĞƌƟƐŝŶŐ͕ƉƌŽŵŽƟŽŶĂů ŵĂƚĞƌŝĂůƐ͕ĂŶĚŝŶĨŽƌŵĂƟŽŶĂůƐŝƚĞƐƐƚƌŝĐƚůLJĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŵĂƌŬĞƟŶŐ^ƵƉƉůŝĞƌ͛ƐŐƌĞĞŵĞŶƚ with Sourcewell.
b) >ŝŵŝƚĞĚZŝŐŚƚŽĨ^ƵďůŝĐĞŶƐĞ͘ dŚĞƌŝŐŚƚĂŶĚůŝĐĞŶƐĞŐƌĂŶƚĞĚŚĞƌĞŝŶŝŶĐůƵĚĞƐĂůŝŵŝƚĞĚƌŝŐŚƚŽĨĞĂĐŚ ƉĂƌƚLJƚŽŐƌĂŶƚƐƵďůŝĐĞŶƐĞƐƚŽƚŚĞŝƌƌĞƐƉĞĐƟǀĞƐƵďƐŝĚŝĂƌŝĞƐ͕ĚŝƐƚƌŝďƵƚŽƌƐ͕ĚĞĂůĞƌƐ͕ƌĞƐĞůůĞƌƐ͕ ŵĂƌŬĞƟŶŐƌĞƉƌĞƐĞŶƚĂƟǀĞƐ͕ƉĂƌƚŶĞƌƐ͕ŽƌĂŐĞŶƚƐ;ĐŽůůĞĐƟǀĞůLJ͞WĞƌŵŝƩĞĚ^ƵďůŝĐĞŶƐĞĞƐ͟ͿŝŶ ĂĚǀĞƌƟƐŝŶŐ͕ƉƌŽŵŽƟŽŶĂů͕ŽƌŝŶĨŽƌŵĂƟŽŶĂůŵĂƚĞƌŝĂůƐĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŵĂƌŬĞƟŶŐƚŚĞWĂƌƟĞƐ͛ ƌĞůĂƟŽŶƐŚŝƉ͖ŚŽǁĞǀĞƌ͕ƉƌŝŽƌƌĞǀŝĞǁĂŶĚĂƉƉƌŽǀĂůŽĨĂŶLJĂŶĚĂůůŵĂƚĞƌŝĂůƐƉƌŽĚƵĐĞĚďLJĂ WĞƌŵŝƩĞĚ^ƵďůŝĐĞŶƐĞĞƐŚĂůůďĞƌĞƋƵŝƌĞĚŽĨƚŚĞƉĂƌƚLJǁŚŽƐĞƚƌĂĚĞŵĂƌŬƐ͕ŶĂŵĞĂŶĚͬŽƌůŽŐŽĂƌĞ ďĞŝŶŐƵƐĞĚďĞĨŽƌĞƉƵďůŝĐĂƟŽŶ͘ŶLJƐƵďůŝĐĞŶƐĞŐƌĂŶƚĞĚǁŝůůďĞƐƵďũĞĐƚƚŽƚŚĞƚĞƌŵƐĂŶĚ ĐŽŶĚŝƟŽŶƐŽĨƚŚŝƐƌƟĐůĞ͘
ĂĐŚƉĂƌƚLJǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂŶLJďƌĞĂĐŚŽĨƚŚŝƐƐĞĐƟŽŶďLJĂŶLJŽĨ ƚŚĞŝƌƌĞƐƉĞĐƟǀĞƐƵďůŝcensees.
c) hƐĞ͖YƵĂůŝƚLJŽŶƚƌŽů͘
i) EĞŝƚŚĞƌƉĂƌƚLJŵĂLJĂůƚĞƌƚŚĞŽƚŚĞƌƉĂƌƚLJ͛ƐƚƌĂĚĞŵĂƌŬƐĨƌŽŵƚŚĞĨŽƌŵƉƌŽǀŝĚĞĚĂŶĚŵƵƐƚ ĐŽŵƉůLJǁŝƚŚƌĞŵŽǀĂůƌĞƋƵĞƐƚƐĂƐƚŽƐƉĞĐŝĮĐƵƐĞƐŽĨŝƚƐƚƌĂĚĞŵĂƌŬƐŽƌůŽŐŽƐ͘ ii)
ĂĐŚƉĂƌƚLJĂŐƌĞĞƐƚŽƵƐĞ͕ĂŶĚƚŽĐĂƵƐĞŝƚƐWĞƌŵŝƩĞĚ^ƵďůŝĐĞŶƐĞĞƐƚŽƵƐĞ͕ƚŚĞŽƚŚĞƌƉĂƌƚLJ͛Ɛ ƚƌĂĚĞŵĂƌŬƐŽŶůLJŝŶŐŽŽĚĨĂŝƚŚĂŶĚŝŶĂĚŝŐŶŝĮĞĚŵĂŶŶĞƌĐŽŶƐŝƐƚĞŶƚǁŝƚŚƐƵĐŚƉĂƌƚLJ͛ƐƵƐĞŽĨ ƚŚĞƚƌĂĚĞŵĂƌŬƐ͘
ĂĐŚƉĂƌƚLJŵĂLJŵĂŬĞǁƌŝƩĞŶŶŽƟĐĞƚŽƚŚĞŽƚŚĞƌƌĞŐĂƌĚŝŶg misuse under ƚŚŝƐƐĞĐƟŽŶ͘dŚĞŽīĞŶĚŝŶŐƉĂƌƚLJǁŝůůŚĂǀĞϯϬĚĂLJƐŽĨƚŚĞĚĂƚĞŽĨƚŚĞǁƌŝƩĞŶŶŽƟĐĞƚŽĐƵƌĞ ƚŚĞŝƐƐƵĞŽƌƚŚĞůŝĐĞŶƐĞͬƐƵďůŝĐĞŶƐĞǁŝůůďĞƚĞƌŵŝŶĂƚĞĚ͘ d) dĞƌŵŝŶĂƟŽŶ͘ hƉŽŶƚŚĞƚĞƌŵŝŶĂƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌĂŶLJƌĞĂƐŽŶ͕ĞĂĐŚƉĂƌƚLJ͕ŝŶĐůƵĚŝŶŐ WĞƌŵŝƩĞĚ^ƵďůŝĐĞŶƐĞĞƐ͕ǁŝůůŚĂǀĞϯϬĚĂLJƐƚŽƌĞŵŽǀĞĂůůdƌĂĚĞŵĂƌŬƐĨƌŽŵƐŝŐŶĂŐĞ͕ǁĞďƐŝƚĞƐ͕ĂŶĚ ƚŚĞůŝŬĞďĞĂƌŝŶŐƚŚĞŽƚŚĞƌƉĂƌƚLJ͛ƐŶĂŵĞŽƌůŽŐŽ;ĞdžĐĞƉƟŶŐ^ŽƵƌĐĞǁĞůů͛ƐƉƌĞ-printed ĐĂƚĂůŽŐŽĨ ƐƵƉƉůŝĞƌƐǁŚŝĐŚŵĂLJďĞƵƐĞĚƵŶƟůƚŚĞŶĞdžƚƉƌŝŶƟŶŐͿ͘^ƵƉƉůŝĞƌŵƵƐƚƌĞƚƵƌŶĂůůŵĂƌŬĞƟŶŐĂŶĚ ƉƌŽŵŽƟŽŶĂůŵĂƚĞƌŝĂůƐ͕ŝŶĐůƵĚŝŶŐƐŝŐŶĂŐĞ͕ƉƌŽǀŝĚĞĚďLJ^ŽƵƌĐĞǁĞůů͕ŽƌĚŝƐƉŽƐĞŽĨŝƚĂĐĐŽƌĚŝŶŐƚŽ ^ŽƵƌĐĞǁĞůů͛ƐǁƌŝƩĞŶĚŝƌĞĐƟŽŶƐ͘
20) sĞŶƵĞĂŶĚ'ŽǀĞƌŶŝŶŐůĂǁďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌKŶůLJ͘ dŚĞƐƵďƐƚĂŶƟǀĞĂŶĚƉƌŽĐĞĚƵƌĂů ůĂǁƐŽĨƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂǁŝůůŐŽǀĞƌŶƚŚŝƐŐƌĞĞŵĞŶƚďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌ͘sĞŶƵĞ ĨŽƌĂůůůĞŐĂůƉƌŽĐĞĞĚŝŶŐƐĂƌŝƐŝŶŐŽƵƚŽĨƚŚŝƐŐƌĞĞŵĞŶƚďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌǁŝůůďĞŝŶ ĐŽƵƌƚŽĨĐŽŵƉĞƚĞŶƚũƵƌŝƐĚŝĐƟŽŶǁŝƚŚŝŶƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂ͘dŚŝƐƐĞĐƟŽŶĚŽĞƐŶŽƚĂƉƉůLJƚŽĂŶLJ ĚŝƐƉƵƚĞďĞƚǁĞĞŶ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͘dŚŝƐŐƌĞĞŵĞŶƚƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚĨŽƌ^ƵƉƉůŝĞƌĂŶĚ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJƚŽŶĞŐŽƟĂƚĞƚŚŝƐƚĞƌŵƚŽǁŝƚŚŝŶĂŶLJƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚƐ͘ 






 

 















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21) ^ĞǀĞƌĂďŝůŝƚLJ͘ /ĨĂŶLJƉƌŽǀŝƐŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƐĨŽƵŶĚďLJĂĐŽƵƌƚŽĨĐŽŵƉĞƚĞŶƚũƵƌŝƐĚŝĐƟŽŶƚŽďĞ ŝůůĞŐĂů͕ƵŶĞŶĨŽƌĐĞĂďůĞ͕ŽƌǀŽŝĚƚŚĞŶďŽƚŚƉĂƌƟĞƐǁŝůůďĞƌĞůŝĞǀĞĚĨƌŽŵĂůůŽďůŝŐĂƟŽŶƐĂƌŝƐŝŶŐĨƌŽŵƚŚĂƚ ƉƌŽǀŝƐŝŽŶ͘/ĨƚŚĞƌĞŵĂŝŶĚĞƌŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƐĐĂƉĂďůĞŽĨďĞŝŶŐƉĞƌĨŽƌŵĞĚ͕ŝƚǁŝůůŶŽƚďĞĂīĞĐƚĞĚ ďLJƐƵĐŚĚĞƚĞƌŵŝŶĂƟŽŶŽƌĮŶĚŝŶŐĂŶĚŵƵƐƚďĞĨƵůůLJƉĞƌĨŽƌŵĞĚ͘ 22) /ŶƐƵƌĂŶĐĞŽǀĞƌĂŐĞ͘ At its own expense, Supplier must maintain valid insurance policy(ies) during ƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚǁŝƚŚŝŶƐƵƌĂŶĐĞĐŽŵƉĂŶLJ;ŝĞƐͿůŝĐĞŶƐĞĚŽƌĂƵƚŚŽƌŝnjĞĚƚŽĚŽ ďƵƐŝŶĞƐƐŝŶƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂŚĂǀŝŶŐĂŶ͞D
^d͟ƌĂƟŶŐŽĨ- ŽƌďĞƩĞƌ͕ǁŝƚŚĐŽverage and
ůŝŵŝƚƐŽĨŝŶƐƵƌĂŶĐĞŶŽƚůĞƐƐƚŚĂŶƚŚĞĨŽůůŽǁŝŶŐ͗
a) ŽŵŵĞƌĐŝĂů'ĞŶĞƌĂů>ŝĂďŝůŝƚLJ/ŶƐƵƌĂŶĐĞ͘ ^ƵƉƉůŝĞƌǁŝůůŵĂŝŶƚĂŝŶŝŶƐƵƌĂŶĐĞĐŽǀĞƌŝŶŐŝƚƐŽƉĞƌĂƟŽŶƐ͕ ǁŝƚŚĐŽǀĞƌĂŐĞŽŶĂŶŽĐĐƵƌƌĞŶĐĞďĂƐŝƐ͕ĂŶĚŵƵƐƚďĞƐƵďũĞĐƚƚŽƚĞƌŵƐŶŽůĞƐƐďƌŽĂĚƚŚĂŶƚŚĞ /ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐKĸĐĞ;͞/^K͟ͿŽŵŵĞƌĐŝĂů'ĞŶĞƌĂů>ŝĂďŝůŝƚLJ&Žƌŵ'ϬϬϬϭ;ϮϬϬϭŽƌŶĞǁĞƌ ĞĚŝƟŽŶͿ͕ŽƌĞƋƵŝǀĂůĞŶƚ͘ƚĂŵŝŶŝŵƵŵ͕ĐŽǀĞƌĂŐĞŵƵƐƚŝŶĐůƵĚĞůŝĂďŝůŝƚLJĂƌŝƐŝŶŐĨƌŽŵƉƌĞŵŝƐĞƐ͕ ŽƉĞƌĂƟŽŶƐ͕ďŽĚŝůLJŝŶũƵƌLJĂŶĚƉƌŽƉĞƌƚLJĚĂŵĂŐĞ͕ŝŶĚĞƉĞŶĚĞŶƚĐŽŶƚƌĂĐƚŽƌƐ͕ƉƌŽĚƵĐƚƐ-completed ŽƉĞƌĂƟŽŶƐŝŶĐůƵĚŝŶŐĐŽŶƐƚƌƵĐƟŽŶĚĞĨĞĐƚ͕ĐŽŶƚƌĂĐƚƵĂůůŝĂďŝůŝƚLJ͕ďůĂŶŬĞƚĐŽŶƚƌĂĐƚƵĂůůŝĂďŝůŝƚLJ͕ĂŶĚ ƉĞƌƐŽŶĂůŝŶũƵƌLJĂŶĚĂĚǀĞƌƟƐŝŶŐŝŶũƵƌLJ͘ůůƌĞƋƵŝƌĞĚůŝŵŝƚƐ͕ƚĞƌŵƐĂŶĚĐŽŶĚŝƟŽŶƐŽĨĐŽǀĞƌĂŐĞŵƵƐƚ ďĞŵĂŝŶƚĂŝŶĞĚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
x Ψϭ͕ϱϬϬ͕ϬϬϬĞĂĐŚŽĐĐƵƌƌĞŶĐĞŽĚŝůLJ/ŶũƵƌLJĂŶĚWƌŽƉĞƌƚLJĂŵĂŐĞ x Ψϭ͕ϱϬϬ͕ϬϬϬWĞƌƐŽŶĂů/ŶũƵƌLJ
x ΨϮ͕ϬϬϬ͕ϬϬϬĂŐŐƌĞŐĂƚĞĨŽƌƉƌŽĚƵĐƚƐůŝĂďŝůŝƚLJ-ĐŽŵƉůĞƚĞĚŽƉĞƌĂƟŽŶƐ x ΨϮ͕ϬϬϬ͕ϬϬϬŐĞŶĞƌĂůĂŐŐƌĞŐĂƚĞ
b) ĞƌƟĮĐĂƚĞƐŽĨ/ŶƐƵƌĂŶĐĞ͘ WƌŝŽƌƚŽĞdžĞĐƵƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕^ƵƉƉůŝĞƌŵƵƐƚĨƵƌŶŝƐŚƚŽ ^ŽƵƌĐĞǁĞůůĂĐĞƌƟĮĐĂƚĞŽĨŝŶƐƵƌĂŶĐĞ͕ĂƐĞǀŝĚĞŶĐĞŽĨƚŚĞŝŶƐƵƌĂŶĐĞƌĞƋƵŝƌĞĚƵŶĚĞƌƚŚŝƐ ŐƌĞĞŵĞŶƚ͘WƌŝŽƌƚŽĞdžƉŝƌĂƟŽŶŽĨƚŚĞƉŽůŝĐLJ;ŝĞƐͿ͕ƌĞŶĞǁĂůĐĞƌƟĮĐĂƚĞƐŵƵƐƚďĞŵĂŝůĞĚƚŽ Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or provided to in an ĂůƚĞƌŶĂƟǀĞŵĂŶŶĞƌĂƐĚŝƌĞĐƚĞĚďLJ^ŽƵƌĐĞǁĞůů͘dŚĞĐĞƌƟĮĐĂƚĞƐŵƵƐƚďĞƐŝŐŶĞĚďLJĂƉĞƌƐŽŶ ĂƵƚŚŽƌŝnjĞĚďLJƚŚĞŝŶƐƵƌĞƌ;ƐͿƚŽďŝŶĚĐŽǀĞƌĂŐĞŽŶƚŚĞŝƌďĞŚĂůĨ͘ &ĂŝůƵƌĞŽĨ^ƵƉƉůŝĞƌƚŽŵĂŝŶƚĂŝŶƚŚĞ ƌĞƋƵŝƌĞĚŝŶƐƵƌĂŶĐĞĂŶĚĚŽĐƵŵĞŶƚĂƟŽŶŵĂLJĐŽŶƐƟƚƵƚĞĂŵĂƚĞƌŝĂůďƌĞĂĐŚ͘ c) ĚĚŝƟŽŶĂů/ŶƐƵƌĞĚ
ŶĚŽƌƐĞŵĞŶƚĂŶĚWƌŝŵĂƌLJĂŶĚEŽŶ-ĐŽŶƚƌŝďƵƚŽƌLJ/ŶƐƵƌĂŶĐĞůĂƵƐĞ͘ Supplier ĂŐƌĞĞƐƚŽůŝƐƚ^ŽƵƌĐĞǁĞůů͕ŝŶĐůƵĚŝŶŐŝƚƐŽĸĐĞƌƐ͕ĂŐĞŶƚƐ͕ĂŶĚĞŵƉůŽLJĞĞƐ͕ĂƐĂŶĂĚĚŝƟŽŶĂůŝŶƐƵƌĞĚ ƵŶĚĞƌƚŚĞ^ƵƉƉůŝĞƌ͛ƐĐŽŵŵĞƌĐŝĂůŐĞŶĞƌĂůůŝĂďŝůŝƚLJŝŶƐƵƌĂŶĐĞƉŽůŝĐLJǁŝƚŚƌĞƐƉĞĐƚƚŽůŝĂďŝůŝƚLJĂƌŝƐŝŶŐ ŽƵƚŽĨĂĐƟǀŝƟĞƐ͕͞ŽƉĞƌĂƟŽŶƐ͕͟Žƌ͞ǁŽƌŬ͟ƉĞƌĨŽƌŵĞĚďLJŽƌŽŶďĞŚĂůĨŽĨ^ƵƉƉůŝĞƌ͕ĂŶĚƉƌŽĚƵĐƚƐ ĂŶĚĐŽŵƉůĞƚĞĚŽƉĞƌĂƟŽŶƐŽĨ^ƵƉƉůŝĞƌ͘dŚĞƉŽůŝĐLJƉƌŽǀŝƐŝŽŶ;ƐͿŽƌĞŶĚŽƌƐĞŵĞŶƚ;ƐͿŵƵƐƚĨƵƌƚŚĞƌ provide that coverage is primary and not excess over or contributory with any other valid, ĂƉƉůŝĐĂďůĞ͕ĂŶĚĐŽůůĞĐƟďůĞŝŶƐƵƌĂŶĐĞŽƌƐĞůĨ-ŝŶƐƵƌĂŶĐĞŝŶĨŽƌĐĞĨŽƌƚŚĞĂĚĚŝƟŽŶĂůŝŶƐƵƌĞĚƐ͘ d) tĂŝǀĞƌŽĨ^ƵďƌŽŐĂƟŽŶ͘ ^ƵƉƉůŝĞƌǁĂŝǀĞƐĂŶĚŵƵƐƚƌĞƋƵŝƌĞ;ďLJĞŶĚŽƌƐĞŵĞŶƚŽƌŽƚŚĞƌǁŝƐĞͿĂůůŝƚƐ ŝŶƐƵƌĞƌƐƚŽǁĂŝǀĞƐƵďƌŽŐĂƟŽŶƌŝŐŚƚƐĂŐĂŝŶƐƚ^ŽƵƌĐĞǁĞůůĂŶĚŽƚŚĞƌĂĚĚŝƟŽŶĂůŝŶƐƵƌĞĚƐĨŽƌůŽƐƐĞƐ ƉĂŝĚƵŶĚĞƌƚŚĞŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐƌĞƋƵŝƌĞĚďLJƚŚŝƐŐƌĞĞŵĞŶƚŽƌŽƚŚĞƌŝŶƐƵƌĂŶĐĞĂƉƉůŝĐĂble to ƚŚĞ^ƵƉƉůŝĞƌŽƌŝƚƐƐƵďĐŽŶƚƌĂĐƚŽƌƐ͘dŚĞǁĂŝǀĞƌŵƵƐƚĂƉƉůLJƚŽĂůůĚĞĚƵĐƟďůĞƐĂŶĚͬŽƌƐĞůĨ-insured ƌĞƚĞŶƟŽŶƐĂƉƉůŝĐĂďůĞƚŽƚŚĞƌĞƋƵŝƌĞĚŽƌĂŶLJŽƚŚĞƌŝŶƐƵƌĂŶĐĞŵĂŝŶƚĂŝŶĞĚďLJƚŚĞ^ƵƉƉůŝĞƌŽƌŝƚƐ ƐƵďĐŽŶƚƌĂĐƚŽƌƐ͘tŚĞƌĞƉĞƌŵŝƩĞĚďLJůĂǁ͕^ƵƉƉůŝĞƌŵƵƐƚƌĞƋƵŝƌĞƐŝŵŝůĂƌǁƌŝƩĞŶĞdžƉƌĞƐƐǁĂŝǀĞƌƐ ŽĨƐƵďƌŽŐĂƟŽŶĂŶĚŝŶƐƵƌĂŶĐĞĐůĂƵƐĞƐĨƌŽŵĞĂĐŚŽĨŝƚƐƐƵďĐŽŶƚƌĂĐƚŽƌƐ͘ 






 

 















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Ed/KE͘ dŚĞůŝŵŝƚƐƌĞƋƵŝƌĞĚďLJƚŚŝƐŐƌĞĞŵĞŶƚĐĂŶ
ďĞŵĞƚďLJĞŝƚŚĞƌƉƌŽǀŝĚŝŶŐĂƉƌŝŵĂƌLJƉŽůŝĐLJŽƌŝŶĐŽŵďŝŶĂƟŽŶǁŝƚŚƵŵďƌĞůůĂͬĞdžĐĞƐƐůŝĂďŝůŝƚLJ ƉŽůŝĐLJ;ŝĞƐͿ͕ŽƌƐĞůĨ-ŝŶƐƵƌĞĚƌĞƚĞŶƟŽŶ͘
23) dĞƌŵŝŶĂƟŽŶĨŽƌŽŶǀĞŶŝĞŶĐĞ͘ Sourcewell or Supplier may terminate this Agreement upon 60 ĐĂůĞŶĚĂƌĚĂLJƐΖǁƌŝƩĞŶŶŽƟĐĞƚŽƚŚĞŽƚŚĞƌWĂƌƚLJ͘dĞƌŵŝŶĂƟŽŶƉƵƌƐƵĂŶƚƚŽƚŚŝƐƐĞĐƟŽŶǁŝůůŶŽƚƌĞůŝĞǀĞ ƚŚĞ^ƵƉƉůŝĞƌ͛ƐŽďůŝŐĂƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌĂŶLJƚƌĂŶƐĂĐƟŽŶƐĞŶƚĞƌĞĚǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ

ŶƟƟĞƐƚŚƌŽƵŐŚƚŚĞĚĂƚĞŽĨƚĞƌŵŝŶĂƟŽŶ͕ŝŶĐůƵĚŝŶŐƌĞƉŽƌƟŶŐĂŶĚƉĂLJŵĞŶƚŽĨĂƉƉůŝĐĂďůĞ ĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐ͘
24) dĞƌŵŝŶĂƟŽŶĨŽƌĂƵƐĞ͘ ^ŽƵƌĐĞǁĞůůŵĂLJƚĞƌŵŝŶĂƚĞƚŚŝƐŐƌĞĞŵĞŶƚƵƉŽŶƉƌŽǀŝĚŝŶŐǁƌŝƩĞŶŶŽƟĐĞŽĨ ŵĂƚĞƌŝĂůďƌĞĂĐŚƚŽ^ƵƉƉůŝĞƌ͘EŽƟĐĞŵƵƐƚĚĞƐĐƌŝďĞƚŚĞďƌĞĂĐŚŝŶƌĞĂƐŽŶĂďůĞĚĞƚĂŝůĂŶĚƐƚĂƚĞƚŚĞ ŝŶƚĞŶƚƚŽƚĞƌŵŝŶĂƚĞƚŚĞŐƌĞĞŵĞŶƚ͘hƉŽŶƌĞĐĞŝƉƚŽĨEŽƟĐĞ͕ƚŚĞ^ƵƉƉůŝĞƌǁŝůůŚĂǀĞϯϬĐalendar days ŝŶǁŚŝĐŚŝƚŵƵƐƚĐƵƌĞƚŚĞďƌĞĂĐŚ͘dĞƌŵŝŶĂƟŽŶƉƵƌƐƵĂŶƚƚŽƚŚŝƐƐĞĐƟŽŶǁŝůůŶŽƚƌĞůŝĞǀĞƚŚĞ^ƵƉƉůŝĞƌ͛Ɛ ŽďůŝŐĂƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌĂŶLJƚƌĂŶƐĂĐƟŽŶƐĞŶƚĞƌĞĚǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐƚŚƌŽƵŐŚƚŚĞ
ĚĂƚĞŽĨƚĞƌŵŝŶĂƟŽŶ͕ŝŶĐůƵĚŝŶŐƌĞƉŽƌƟŶŐĂŶĚƉĂLJŵĞŶƚŽĨĂƉƉůŝĐĂďůĞĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐ͘ ƌƟĐůĞϯ͗
^ƵƉƉůŝĞƌKďůŝŐĂƟŽŶƐƚŽWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ
dŚĞdĞƌŵƐŝŶƚŚŝƐƌƟĐůĞϯƌĞůĂƚĞƐƉĞĐŝĮĐĂůůLJƚŽ^ƵƉƉůŝĞƌĂŶĚĂWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJǁŚĞŶĞŶƚĞƌŝŶŐ
ƚƌĂŶƐĂĐƟŽŶƐƵƟůŝnjŝŶŐƚŚĞ'ĞŶĞƌĂůdĞƌŵƐĞƐƚĂďůŝƐŚĞĚŝŶƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚ͘ƌƟĐůĞϭ'ĞŶĞƌĂůdĞƌŵƐ ĐŽŶƚƌŽůŽǀĞƌĂŶLJĐŽŶŇŝĐƚǁŝƚŚƚŚŝƐƌƟĐůĞϯ͘tŚĞƌĞ ƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚŝƐƐŝůĞŶƚŽŶĂŶLJƐƵďũĞĐƚ͕ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĂŶĚ^ƵƉƉůŝĞƌƌĞƚĂŝŶƚŚĞĂďŝůŝƚLJƚŽŶĞŐŽƟĂƚĞŵƵƚƵĂůůLJĂĐĐĞƉƚĂďůĞƚĞƌŵƐ͘ 1) YƵŽƚĞƐƚŽWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ͘ ^ƵƉƉůŝĞƌƐĂƌĞĞŶĐŽƵƌĂŐĞĚƚŽƉƌŽǀŝĚĞĂůůƉƌŝĐŝŶŐŝŶĨŽƌŵĂƟŽŶ ƌĞŐĂƌĚŝŶŐƚŚĞƚŽƚĂůĐŽƐƚŽĨĂĐƋƵŝƐŝƟŽŶǁŚĞŶƋƵŽƟŶŐƚŽĂWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJ͘^ƵƉƉůŝĞƌƐĂŶĚ
WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐĂƌĞĞŶĐŽƵƌĂŐĞĚƚŽŝŶĐůƵĚĞĂůůĐŽƐƚƐƉĞĐŝĮĐĂůůLJĂƐƐŽĐŝĂƚĞĚǁŝƚŚŽƌŝŶĐůƵĚĞĚǁŝthin ƚŚĞ^ƵƉƉůŝĞƌƐƉƌŽƉŽƐĂůĂŶĚ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐǁŝƚŚŝŶƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚƐ͘ 2) ^ŚŝƉƉŝŶŐ͕ĞůŝǀĞƌLJ͕ĐĐĞƉƚĂŶĐĞ͕ZĞũĞĐƟŽŶ͕ĂŶĚtĂƌƌĂŶƚLJ͘ ^ƵƉƉůŝĞƌ͛ƐƉƌŽƉŽƐĂůŵĂLJŝŶĐůƵĚĞƉƌŽƉŽƐĞĚ ƚĞƌŵƐƌĞůĂƟŶŐƚŽƐŚŝƉƉŝŶŐ͕ĚĞůŝǀĞƌLJ͕ŝŶƐƉĞĐƟŽŶ͕ĂŶĚĂĐĐĞƉƚĂŶĐĞͬƌĞũĞĐƟŽŶĂŶĚŽƚŚĞƌƌĞůĞǀĂŶƚƚĞƌŵƐ ŽĨƚĞŶĚĞƌĞĚ^ŽůƵƟŽŶƐ͘^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŵĂLJŶĞŐŽƟĂƚĞĮŶĂůƚĞƌŵƐĂƉƉƌŽƉƌŝĂƚĞĨŽƌƚŚĞ
ƐƉĞĐŝĮĐƚƌĂŶƐĂĐƟŽŶƌĞůĂƟŶŐƚŽŶŽŶ-ĂƉƉƌŽƉƌŝĂƟŽŶ͕ƐŚŝƉƉŝŶŐ͕ĚĞůŝǀĞƌLJ͕ŝŶƐƉĞĐƟŽŶ͕ ĂĐĐĞƉƚĂŶĐĞͬƌĞũĞĐƟŽŶŽĨƚĞŶĚĞƌĞĚ^ŽůƵƟŽŶƐ͕ĂŶĚǁĂƌƌĂŶƚLJĐŽǀĞƌĂŐĞĨŽƌ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ͘^ƵĐŚ terms may include, but are not lŝŵŝƚĞĚƚŽ͕ĐŽƐƚƐ͕ƌŝƐŬŽĨůŽƐƐ͕ƉƌŽƉĞƌƉĂĐŬĂŐŝŶŐ͕ŝŶƐƉĞĐƟŽŶƌŝŐŚƚƐĂŶĚ ƟŵĞůŝŶĞƐ͕ĂĐĐĞƉƚĂŶĐĞŽƌƌĞũĞĐƟŽŶƉƌŽĐĞĚƵƌĞƐ͕ĂŶĚƌĞŵĞĚŝĞƐĂƐŵƵƚƵĂůůLJĂŐƌĞĞĚŝŶĐůƵĚĞŶŽƟĐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ͕ƌĞƉůĂĐĞŵĞŶƚ͕ƌĞƚƵƌŶŽƌĞdžĐŚĂŶŐĞƉƌŽĐĞĚƵƌĞƐ͕ĂŶĚĂƐƐŽĐŝĂƚĞĚĐŽƐƚƐ͘ 3) ƉƉůŝĐĂďůĞdĂdžĞƐ͘ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌŶŽƟĨLJŝŶŐƐƵƉƉůŝĞƌŽĨŝƚƐƚĂdž-exempt status and ĨŽƌƉƌŽǀŝĚŝŶŐ^ƵƉƉůŝĞƌǁŝƚŚĂŶLJǀĂůŝĚƚĂdž-ĞdžĞŵƉƟŽŶĐĞƌƟĮĐĂƟŽŶ;ƐͿŽƌƌĞůĂƚĞĚĚŽĐƵŵĞŶƚĂƟŽŶ͘ 4) KƌĚĞƌŝŶŐWƌŽĐĞƐƐĂŶĚWĂLJŵĞŶƚ͘ ^ƵƉƉůŝĞƌ͛ƐŽƌĚĞƌŝŶŐƉƌŽĐĞƐƐĂŶĚĂĐĐĞƉƚĂďůĞĨŽƌŵƐŽĨƉĂLJŵĞŶƚĂƌĞ ŝŶĐůƵĚĞĚǁŝƚŚŝŶŝƚƐWƌŽƉŽƐĂů͘WĂƌƟĐŝƉĂƟŶŐ
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5) dƌĂŶƐĂĐƟŽŶŽĐƵŵĞŶƚƐ͘ WĂƌƟĐŝƉĂƟŶŐ
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Bid Number: RFP 100124 Vendor Name: AutoZone Parts, Inc. 






 

 















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Bid Number: RFP 100124 Vendor Name: AutoZone Parts, Inc. 






 

 















329
Bid Number: RFP 100124 Vendor Name: AutoZone Parts, Inc.

Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.

Documents
Ensure your submission document(s) conforms to the following:

1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Copy of Automotive Parts Equipment Discount Spreadsheet_SA.xlsx - Friday September 20, 2024 18:00:04 Financial Strength and Stability (optional)
Marketing Plan/Samples (optional)
WMBE/MBE/SBE or Related Certificates (optional)
Standard Transaction Document Samples (optional)
Requested Exceptions - Sourcewell_RFP_100124_Master_Agreement_Redlines 8.30.24 final.docx - Friday September 20, 2024 16:48:41
Upload Additional Document - AutoZone_2024_ESG_Report (1).pdf - Wednesday September 25, 2024 20:59:02 






 

 















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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Jim Steffens, Power Resources Manager
Art Vela, Director of Public Works
MEETING DATE: October 13, 2026
SUBJECT: Consideration of Resolution 2026-136 Approving the City of Banning Electric Utility's Power Source Disclosure Annual Report and Power Content Label for Calendar Year 2025
STAFF RECOMMENDATION:

Adopt Resolution 2026-136
BACKGROUND:

On October 11, 2009, Governor Arnold Schwarzenegger signed California State Assembly Bill 162 (“AB 162”), which amended the Power Content Label reporting requirements originally set forth in Senate Bill 1305. The amendments changed the reporting requirements from quarterly to annual, and required that electric utilities report actual power content information instead of projected.

The information must be provided to the utility’s customers through either printed or electronic means, including posting it on the City’s website. The utility will provide it by posting an electronic copy of the Power Content Label on the City’s website.

The California Energy Commission (CEC), which has oversight authority for this requirement, has stated that the governing body of each locally owned public utility must approve both the Power Source Disclosure Annual Report and the annual Power Content Label for the utility(s) under its jurisdiction.

Therefore, Staff is requesting that the City Council approve Resolution 2026-136, accepting both the City of Banning Electric Utility’s Power Source Disclosure Annual Report, attached herewith as Exhibit “A”, and the City of Banning Electric Utility’s Power Content Label, attached herewith as Exhibit “B”.

JUSTIFICATION:

AB 162 requires that all load serving electric utilities develop and provide to its customers on an annual basis an approved Power Content Label. The Power Content Label shows the percentages of each type of energy resources that are used to serve an electric utility’s customers. The regulation was amended beginning in calendar year 2019, requiring the governing body of each locally owned public utility to approve both the Power Source Disclosure Annual Report and the Power Content Label.

FISCAL IMPACT:

There is no fiscal impact in the adoption of Resolution 2026-136.

ATTACHMENTS:

1. 2026-136_Resolution_PCL.docx
333

2. Resolution 2026-136 Exhibit A v2.pdf

3. Resolution 2026-136 Exhibit B.pdf
334
Resolution 2026-136