Agenda packet — Escondido City Council, May 21, 2025

CITY of ESCONDIDO
Council Meeting Agenda
WEDNESDAY, MAY 21, 2025
4:00 PM - Closed Session (Parkview Conference Room)
5:00 PM - Regular Session
Escondido City Council Chambers, 201 North Broadway, Escondido, CA 92025

WELCOME TO YOUR CITY COUNCIL MEETING
We welcome your interest and involvement in the legislative process of Escondido. This agenda includes information about topics coming before the City Council and the action recommended by City staff.

MAYOR
Dane White

DEPUTY MAYOR
Consuelo Martinez (District 1)

COUNCILMEMBERS
Joe Garcia (District 2)
Christian Garcia (District 3)
Judy Fitzgerald (District 4)

CITY MANAGER
Sean McGlynn

CITY ATTORNEY
Michael McGuinness

CITY CLERK
Zack Beck

HOW TO WATCH
The City of Escondido provides three ways to watch a City Council meeting:

In Person On TV Online
201 N. Broadway Cox Cable Channel 19 and U-verse Channel 99 www.escondido.gov 1 Wednesday, May 21, 2025

HOW TO PARTICIPATE
The City of Escondido provides two ways to communicate with the City Council during a meeting:

In Person In Writing

Fill out Speaker Slip and Submit to City Clerk escondido-ca.municodemeetings.com

ASSISTANCE PROVIDED
If you need special assistance to participate in this meeting, please contact our ADA Coordinator at 760-839-4869.

Notification 48 hours prior to the meeting will enable to city to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired – please see the City Clerk.

2 Wednesday, May 21, 2025

CLOSED SESSION
4:00 PM

CALL TO ORDER

1. Roll Call: Fitzgerald, C. Garcia, J. Garcia, Martinez, White

ORAL COMMUNICATIONS
In addition to speaking during particular agenda items, the public may address the Council on any item which is not on the agenda provided the item is within the subject matter jurisdiction of the City Council. State law prohibits the Council from discussing or taking action on such items, but the matter may be referred to the City Manager/staff or scheduled on a subsequent agenda. Speakers are limited to only one opportunity to address the Council under Oral Communications.

CLOSED SESSION

I. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6)

a. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Teamsters Local 911, Maintenance and Operations Bargaining Unit and Administrative / Clerical / Engineering Bargaining Unit b. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido City Employees’ Association, Supervisory Bargaining Unit

ADJOURNMENT

3 Wednesday, May 21, 2025

REGULAR SESSION
5:00 PM Regular Session

MOMENT OF REFLECTION
City Council agendas allow an opportunity for a moment of silence and reflection at the beginning of the evening meeting. The City does not participate in the selection of speakers for this portion of the agenda, and does not endorse or sanction any remar ks made by individuals during this time. If you wish to be recognized during this portion of the agenda, please notify the City Clerk in advance.

FLAG SALUTE
The City Council conducts the Pledge of Allegiance at the beginning of every City Council meeting.

CALL TO ORDER
Roll Call: Fitzgerald, C. Garcia, J. Garcia, Martinez, White

PROCLAMATION
National Public Works Week

PRESENTATION
Water Awareness Poster Contest Winners

CLOSED SESSION REPORT

CONSENT CALENDAR
Items on the Consent Calendar are not discussed individually and are approved in a single motion. However, Council members always have the option to have an item considered separately, either on their own request or at the request of staff or a member of the public.
4 Wednesday, May 21, 2025

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB)

2. APPROVAL OF WARRANT REGISTER
Request the City Council approve the City Council and Housing Successor Agency warrants issued between May 5, 2025 to May 11, 2025.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance)

3. APPROVAL OF MINUTES: Regular meeting of May 14, 2025

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS

5. CONTINUING THE EMERGENCY REPAIR OF THE ESCONDIDO TRUNK SEWER MAIN Request the City Council adopt Resolution No. 2025-54, declaring that pursuant to the terms of Section 22050 of the California Public Contract Code, the City Council finds there is a need to continue the emergency repair of the Escondido Trunk Sewer Main. The Resolution, which must be passed by four- fifths vote, also declares that public interest and necessity demand the immediate expenditure to safeguard life, health, or property.

Staff Recommendation: Approval (Utilities Department: Angela Morrow, Director of Utilities) Presenter: Kyle Morgan, Assistant Director of Utilities, Wastewater a) Resolution No. 2025-54

6. APPROVAL OF PUBLIC SERVICE AGREEMENT WITH SHARP BUSINESS SYSTEMS INC. AND XEROX

BUSINESS SOLUTIONS
Request the City Council adopt Resolution No. 2025-40, authorizing the Mayor to execute two Public Service Agreements (“PSA”): (1) copier/multifunction device (“MFD”) hardware, software, supplies and service with Sharp Business Systems Inc. and (2) network printer hardware, service, and supplies, duplicating production device hardware, software, and service, and wide format printing device, software, and service with Xerox Business Solutions.

Staff Recommendation: Approval (Information Systems Department: Robert Van De Hey, Chief Information Officer)
Presenter: Robert Van De Hey, Chief Information Officer a) Resolution No. 2025-40

5 Wednesday, May 21, 2025

7. AUTHORIZE SUPPORT LETTER FOR AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES GRANT

APPLICATION
Request the City Council adopt Resolution No. 2025-59 authorizing the City Engineer to submit a letter of support for the Affordable Housing and Sustainable Communities grant application which will be submitted to the State in May.

Staff Recommendation: Approval (Development Services Department: Christopher McKinney, Deputy City Manager/Interim Director of Development Services)
Presenter: Jonathan Schauble, City Engineer
a) Resolution No. 2025-59

WORKSHOP

8. FISCAL YEAR 2025/26 OPERATING BUDGET BRIEFING
Request the City Council provide direction regarding the Fiscal Year 2025/26 Operating Budget.

Staff Recommendation: Provide Direction (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance

CURRENT BUSINESS

9. BOARD AND COMMISSION APPOINTMENTS
Request the City Council ratify the Mayor’s appointments to serve on the Library Board of Trustees, Planning Commission, Public Art Commission and Transportation and Community Safety Commission.

Staff Recommendation: None (City Clerk’s Office: Zack Beck) Presenter: Zack Beck, City Clerk

FUTURE AGENDA

10. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.

Staff Recommendation: None (City Clerk's Office: Zack Beck)

6 Wednesday, May 21, 2025

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
CITY MANAGER’S REPORT
The most current information from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development.

ADJOURNMENT

UPCOMING MEETING SCHEDULE
Wednesday, June 04, 2025 4:00 & 5:00 PM Closed Session, Regular Meeting, Council Chambers Wednesday, June 11, 2025 4:00 & 5:00 PM Closed Session, Regular Meeting, Council Chambers

SUCCESSOR AGENCY
Members of the Escondido City Council also sit as the Successor Agency to the Community Development Commission, Escondido Joint Powers Financing Authority, and the Mobilehome Rent Review Board.

7 Consent Item No. 1 May 21, 2025

A F F I D A V I T S

I T E M

P O S T I N G – NONE
8 Item1.

STAFF REPORT

May 21, 2025
File Number 0400-40

SUBJECT

APPROVAL OF WARRANT REGISTER

DEPARTMENT
Finance

RECOMMENDATION
Approval for City Council and Housing Successor Agency warrants issued between May 5, 2025 to May 11, 2025
Staff Recommendation: Approval (Finance Department: Christina Holmes) ESSENTIAL SERVICE – Internal requirement per Municipal Code Section 10 COUNCIL PRIORITY –

FISCAL ANALYSIS
The total amount of the warrants for the following periods are as follows:

Dates 05/05/2025 to 05/11/2025
Total $3,615,121.41
Number of Warrants 180

BACKGROUND
The Escondido Municipal Code Section 10-49 states that warrants or checks may be issued and paid prior to audit by the City Council, provided the warrants or checks are certified and approved by the Director of Finance as conforming to the current budget. These warrants or checks must then be ratified and approved by the City Council at the next regular Council meeting. 9 Item2.

May 14, 2025 Escondido City Council Minutes Page 1 of 8

CLOSED SESSION
4:00 PM

CALL TO ORDER

1. Roll Call: Fitzgerald, C. Garcia, J. Garcia, Martinez, White

ORAL COMMUNICATIONS
None

CLOSED SESSION

I. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8) (a) Property: 340 N. Escondido Blvd, Escondido (California Center for the Arts, Escondido) Agency Negotiator: Sean McGlynn, City Manager, or designees Negotiating Party: California Center for the Arts Foundation Under Negotiation: Terms of Management Agreement

II. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Government Code § 54956.9(d)(4))
(a) One Matter

III. CONFERFENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) (a) Agency Representative: Sean McGlynn, City Manager, or designees Employee Organization: Escondido City Employees’ Association, Supervisory Bargaining Unit
(b) Agency Representative: Sean McGlynn, City Manager, or designees Employee Organization: Teamsters Local 911, Maintenance and Operations Bargaining Unit and Administrative/Clerical/Engineering Bargaining Unit

10 Item3.

May 14, 2025 Escondido City Council Minutes Page 2 of 8

ADJOURNMENT
Mayor White adjourned the meeting at 4:55 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

11 Item3.

May 14, 2025 Escondido City Council Minutes Page 3 of 8

REGULAR SESSION
5:00 PM Regular Session
Mobilehome Rent Review Board

MOMENT OF REFLECTION
City Council agendas allow an opportunity for a moment of silence and reflection at the beginning of the evening meeting. The City does not participate in the selection of speakers for this portion of the agenda, and does not endorse or sanction any remarks made by in dividuals during this time. If you wish to be recognized during this portion of the agenda, please notify the City Clerk in advance.

FLAG SALUTE
The City Council conducts the Pledge of Allegiance at the beginning of every City Council meeting.

CALL TO ORDER
Roll Call: C. Garcia, J. Garcia, Martinez, White (Fitzgerald – Absent)

PROCLAMATION
Economic Development Week - May 12-16, 2025

CLOSED SESSION REPORT
None

ORAL COMMUNICATIONS
Luis – Expressed concern regarding lack of City of Escondido services for those experiencing homelessness.

CONSENT CALENDAR
Motion to approve items 1-6 and 8-9: White; Second: J. Garcia; Approved: 4-0 (Fitzgerald – Absent)

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) 12 Item3.

May 14, 2025 Escondido City Council Minutes Page 4 of 8

2. APPROVAL OF WARRANT REGISTER
Request the City Council approve the City Council and Housing Successor Agency warrants issued between April 28, 2025 to May 4, 2025.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance)

3. APPROVAL OF MINUTES: Regular meetings of April 16, 2025 and May 7, 2025

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS

5. THE CITY OF ESCONDIDO’S INVESTMENT POLICY
Request the City Council adopt Resolution No. 2025-49 approving the City of Escondido’s May 2025 Investment Policy. (File Number 0110-10)
Staff Recommendation: Approval (Finance Department: Douglas Shultz, City Treasurer) Presenter: Douglas Shultz, City Treasurer
a) Resolution No. 2025-49

6. TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2025 Request the City Council approve the Quarterly Investment Report for the quarter ended March 31, 2025. (File Number 0490-55)
Staff Recommendation: Approval (Finance Department: Douglas Shultz, City Treasurer) Presenter: Douglas Shultz, City Treasurer

7. PL25-0044 - 2024 GENERAL PLAN ANNUAL PROGRESS REPORT Request the City Council receive and file the 2024 calendar year General Plan Annual Progress Report. (File Number 0830-07)
Staff Recommendation: Receive and File (Development Services Department: Christopher W.

McKinney, Deputy City Manager/Interim Director of Development Services) Presenter: Pricila Roldan, Associate Planner
Item presented by staff

8. AWARD CONSTRUCTION CONTRACT FOR THE LIBRARY INFRASTRUCTURE IMPROVEMENT

PROJECT AND AUTHORIZE STAFF TO PROCESS CHANGE ORDERS UP TO TWENTY PERCENT

OF THE CONTRACT AWARD AMOUNT
Request the City Council adopt Resolution No. 2025-55 awarding a construction contract for 13 Item3.

May 14, 2025 Escondido City Council Minutes Page 5 of 8

the Library Infrastructure Improvement Project to Southwest Construction Services Inc., in the amount of $6,266,583.82, authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement with Southwest Construction Services, Inc. to complete the base bid work items plus the additive alternate bid items No. 32 through No. 37, and authorize the Director of Public Works to approve change orders not to exceed 20% of the contract amount. (File Number 0600-10; A-3555)
Staff Recommendation: Approval (Public Works Department: Joseph Goulart, Director of Public Works)
Presenter: Ed Vasquez, Project Manager
a) Resolution No. 2025-55

9. DONATION OF ONE SURPLUS FIRE ENGINE
Request the City Council to approve the donation of a surplus fire engine to Palomar College Foundation for training purposes. (File Number 0150-20) Staff Recommendation: Approval (Fire Department: John Tenger, Fire Chief) Presenter: John Tenger, Fire Chief

PUBLIC HEARINGS

10. CONSIDER AN UNCODIFIED ORDINANCE ADOPTING THE STATE OF CALIFORNIA FIRE HAZARD SEVERITY ZONE (FHSZ) MAP PURSUANT TO GOVERNMENT CODE 51179 Request the City Council adopt Ordinance 2025-03 designating Fire Hazard Severity Zones in accordance with the Office of the State Fire Marshal update and Government Code 51179. (File Number 0680-10)
Staff Recommendation: Approval (Fire Department: John Tenger, Fire Chief) Presenter: La Vona Koretke, Fire Marshal
a) Ordinance No. 2025-03 (First Reading and Introduction) Motion: White; Second: C. Garcia; Approved: 4-0 (Fitzgerald – Absent)

11. APPROVAL OF THE ESCONDIDO POLICE DEPARTMENT MILITARY EQUIPMENT REPORT AND ADOPTION OF ORDINANCE NO. 2025-02
Request the City Council adopt Ordinance No. 2025-02 approving the Escondido Police Department Annual Military Equipment Report in accordance with state law requirements as set for in Assembly Bill No. 481 (AB 481). (File Number 0110-10) 14 Item3.

May 14, 2025 Escondido City Council Minutes Page 6 of 8

Staff Recommendation: Approval (Police Department: Ryan Banks, Interim Chief of Police) Presenters: Ryan Banks, Interim Chief of Police; Erik Witholt, Police Captai n; and Lisa Rodelo, Assistant Director of Police Support Services
a) Ordinance No. 2025-02 (First Reading and Introduction) Luis – Requested that Escondido Police Officers be properly trained on the use of the military equipment referenced in the report.

Motion: J. Garcia; Second: C. Garcia; Approved: 4-0 (Fitzgerald – Absent)

12. SHORT-FORM RENT INCREASE APPLICATION FOR GREENCREST MOBILE HOMEPARK Request the City Council, serving in its role as the City of Escondido Mobilehome Rent Review Board: (1) review and consider Greencrest Mobilehome Park’s Short-Form Application and (2) adopt Mobilehome Rent Review Board Resolution No. RBR 2025-53. (File Number 0697-20- 10351)
Staff Recommendation: Approval (Development Services Department: Christopher McKinney, Deputy City Manager/Interim Director of Development Services) Presenters: Carlos Cervantes, Management Analyst and Stephen Jacobson, Code Compliance Officer II
a) RRB Resolution No. 2025-53
Ana Frutos – Expressed opposition to the rent increase.

Motion: White; Second: C. Garcia; Approved: 4-0 (Fitzgerald – Absent)

13. SHORT-FORM RENT INCREASE APPLICATION FOR EASTWOOD MEADOWS HOMEPARK Request the City Council, serving in its role as the City of Escondido Mobilehome Rent Review Board: (1) review and consider Eastwood Meadows Mobilehome Park Short-Form Application; and (2) adopt the Rent Review Board Resolution No. RRB 2025-52. (File Number 0697-20-10350)
Staff Recommendation: Approval (Development Services Department: Christopher McKinney, Deputy City Manager/Interim Director of Development Services) Presenters: Carlos Cervantes, Management Analyst; Stephen Jacobson, Code Compliance Officer II
a) RRB Resolution No. 2025-52
15 Item3.

May 14, 2025 Escondido City Council Minutes Page 7 of 8

Ernst Kubyan (Resident Representative) – Expressed concern regarding the water and sewer rates at the park.

Motion: White; Second: C. Garcia; Approved: 4-0 (Fitzgerald – Absent)

WORKSHOP

14. USER AND REGULATORY FEE STUDY WORKSHOP
Request the City Council provide direction regarding Fiscal Year 2025/26 User Fee increases. (File Number 0410-20)
Staff Recommendation: Provide Direction (Finance Department: Christina Holmes, Director of Finance)
Presenter: Christina Holmes, Director of Finance
No Council action required for this item.

CURRENT BUSINESS

15. FISCAL YEAR 2024/25 THIRD QUARTER FINANCIAL STATUS REPORT Request the City Council receive and file the third quarter financial report for Fiscal Year 2024/25. (File Number 0480-45)
Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance)
Presenter: Christina Holmes, Director of Finance
No Council action required for this item.

16. BOARD AND COMMISSION MAKEUP INTERVIEWS
Request the City Council conduct make-up interviews of applicants to fill vacancies on the City's Boards and Commissions. (0120-10)
Staff Recommendation: None (City Clerk’s Office: Zack Beck) Presenter: Zack Beck, City Clerk
Interviews conducted.

FUTURE AGENDA
16 Item3.

May 14, 2025 Escondido City Council Minutes Page 8 of 8

17. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.

Staff Recommendation: None (City Clerk's Office: Zack Beck)

ORAL COMMUNICATIONS

ADJOURNMENT
Mayor White adjourned the meeting at 7:35 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

17 Item3.
18 Item4.

STAFF REPORT

May 21, 2025
File Number 1330-85

SUBJECT

CONTINUING THE EMERGENCY REPAIR OF THE ESCONDIDO TRUNK SEWER MAIN

DEPARTMENT
Utilities Department

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-54, declaring that pursuant to the terms of Section 22050 of the California Public Contract Code, the City Council finds there is a need to continue the emergency repair of the Escondido Trunk Sewer Main. The Resolution, which must be passed by four - fifths vote, also declares that public interest and necessity demand the immediate expenditure to safeguard life, health, or property.

Staff Recommendation: Approval (Utilities: Angela Morrow, Director of Utilities) Presenter: Kyle Morgan, Assistant Director of Utilities, Wastewater ESSENTIAL SERVICE – Yes, Keep City Clean for Public Health and Safety; Sewer COUNCIL PRIORITY –Improve Public Safety

FISCAL ANALYSIS
Funding for the Emergency Repair of the Escondido Trunk Sewer Main is available in the Wastewater Capital Improvement Project (“CIP”) budget for Sewer Trunk Main, CIP No. 801913.

PREVIOUS ACTION
On June 26, 2024, the City Council adopted Resolution No. 2024 -86, ratifying Proclamation No. 2024-02, affirming that it was appropriate for City staff to forego competitive bidding procedures and work with contractors for the necessary emergency repair of the failing trunk sewer main.

On July 10, 2024, the City Council adopted Resolution No. 2024 -94, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main.

On July 17, 2024, the City Council adopted Resolution No. 2024-103, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main. 19 Item5.

On July 23, 2024, a Public Improvement Agreement with CCL Contracting, Inc. was executed for the emergency repair of Section 2, from Beech Street to Grape Day Park, on a time and materials basis in an amount not to exceed $10,240,691.

On August 7, 2024, the City Council adopted Resolution No. 2024-106, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main. In addition, City Council approved a budget adjustment in the amount of $12,036,225 to fund the emergency repair of the failing trunk sewer main, consisting of $7,036,225 from the unallocated Wastewater Reserves and $5,000,000 from Capital Improvement Project No. 801508, Recycled Easterly Ag MFRO.

On August 21, 2024, a P ublic Improvement Agreement with J.R. Filanc Construction Company was executed for the emergency repair of Section 1, Ash Street from the Firestone Complete Auto Care parking lot to the Walmart Neighborhood Market parking lot, on a time and materials basis in an amount not to exceed $1,795,534.

On August 28, 2024, the City Council adopted Resolution No. 2024-117, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main.

On September 11, 2024, the City Council adopted Resolution No. 2024-131, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.

On October 2, 2024, the City Council adopted Resolution No. 2024-141, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.

On October 23, 2024, the City Council adopted Resolution No. 2024 -146, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.

On November 20, 2024, the City Council adopted Resolution No. 2024-162, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.

On December 4, 2024, the City Council adopted Resoluti on No. 2024 -178, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.

On January 8, 2025, the City Council adopted Resolution No. 2025 -03, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.

On January 29, 2025, the City Council adopted Resolution No. 2025-06, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.

On February 19, 2025, the City Council adopted Resolution No. 2025-08, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer line. 20 Item5.

On March 19, 2025, the City Council adopted Resolution No. 2025 -14, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer line.

On April 2, 2025, the City Council adopted Resolution No. 2025 -19, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.

On April 16, 2025, the City Council adopted Resolution No. 2025-30, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.

On May 7, 2025, the City Council adopted R esolution No. 2025-38, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer lin.

BACKGROUND
The City’s trunk sewer mains, constructed in the 1950’s, are a critical and integral part of the City’s wastewater system. In June 2024, during routine closed -circuit television inspection, Utilities Staff identified multiple failed and severely deteriorated sections of 18 -inch and 21-inch trunk sewer main. In order to act quickly to avoid catastrophic failure, a local emergency was proclaimed on June 20, 2024, by the City Manager, serving as the Director of Emergency Services. The current and continuing scope of work includes two sections of severely deteriorated trunk sewer main that are in critical condition. These sections are shown in Figure 1 below and defined as follows:

Section 1: Ash Street - paralleling the Escondido Creek, from the Firestone Complete Auto Care (“Firestone”) parking lot to the Walmart Neighborhood Market (“Walmart”) parking lot; and Section 2: Beech Street to Grape Day Park - paralleling the Escondido Creek, traversing a short section of North Hickory Street, then continuing in East Pennsylvania Street from North Hickory and extending into Grape Day Park.

21 Item5.

Figure 1

Section 1 emergency repair work began on August 7, 2024. Repair work to Section 1 was completed as of January 30, 2025. The final slurry seal coat to the Firestone parking lot is scheduled to be completed on July 3, 2025, to allow for proper cure time and minimal disruption to Firestone’s normal business operating hours.

Section 2 emergency repair work began on July 25, 2024, and is anticipated to be complete by July 31, 2025. The contractor, CCL Contracting, Inc. (“CCL”), has installed approximately 3,680 linear feet of trunk main, from Grape Day Park to Hickory Street, within Pennsylvania Avenue; north within Hickory Street from the intersection of Pennsylvania Avenue and Hickory Street to just south of the intersection of Hickory Street and Lansing Circle; easterly through the Westmont Assisted Living Community; and continues easterly within the City’s Escondido Creek private property/public utility easement, paralleling the south side of Escondido Creek to Grape Street. Additional work over the last several weeks includes:
continued installation of new 24-inch trunk sewer pipeline, continued restoration work at Westmont Assisted Living Community, coordination and work with SDG&E to keep local businesses in power during construction, installation of approximately 465 linear feet of 6-inch above grade temporary bypass highline between Grape Street and Hickory Street along the Escondido Creek access road, and fencing replacement along the Escondido Creek access road. Electronic message boards updating the community are in place, where appropriate, throughout the construction project site and will remain through the duration of work.
22 Item5.

Utilities Staff continues to communicate and coordinate with affected businesses and local schools within the construction zone of influence , as well as other City Departments regarding current and upcoming construction, including the upcoming road closures, final improvements within Grape Day Park, the Grand Avenue Corridor Project, and the Escondido Creek Trail Project.

RESOLUTIONS
a) Resolution No. 2025-54

23 Item5.

RESOLUTION NO. 2025-54

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, FINDING THAT AN

EMERGENCY CONTINUES TO REQUIRE THE IMMEDIATE

REPAIR OF THE ESCONDIDO TRUNK SEWER MAIN

WHEREAS, the City Council recognizes that the City’s trunk sewer main pipeline defined in the two following critical sections are at risk of imminent, catastrophic failure:

Section 1: Ash Street - paralleling the Escondido Creek, from the Firestone Complete Auto C are parking lot to the Walmart Neighborhood Market parking lot; and Section 2: Beech Street to Grape Day Park - paralleling the Escondido Creek, traversing a short section of North Hickory Street, then continuing in East Pennsylvania Street from North Hic kory and extending into Grape Day Park; and
WHEREAS, pursuant to the approval of Resolution No. 2024 -86 on June 26, 2024, ratifying Proclamation No. 2024-02; Resolution No. 2024-94 on July 10, 2024; Resolution No. 2024-103 on July 17, 2024; Resolution No. 2024-106 on August 7, 2024 ; Resolution No. 2024 -117 on August 28, 2024; Resolution No. 2024-131 on September 11, 2024; Resolution No. 2024-141 on October 2, 2024; Resolution No. 2024-146 on October 23, 2024; Resolution No. 2024-162 on November 20, 2024; Resolution No. 2024- 178 on December 4, 2024; Resolution No. 2025-03 on January 8, 2025; Resolution No. 2025-06 on January 29, 2025; Resolution No. 2025 -08 on February 19, 2025 ; Resolution No. 2025 -14 On March 19, 2025 ; Resolution No. 2025-19 on April 2, 2025; Resolution No. 2025-30 on April 16, 2025 ; and Resolution No. 2025-38 on May 7, 2025, the City Council previously found that the failing trunk sewer risk constitutes an emergency and found it appropriate for Utilities Staff to proceed to contract serv ices without adopting plans, specifications, working details, or giving notice of bids to award contracts; and 24 Item5.

WHEREAS, on August 7, 2024, City Council approved a budget adjustment in the amount of twelve million, thirty-six thousand, two-hundred twenty-five dollars ($12,036,225) to fund the emergency repair of the failing trunk sewer main, consisting of $7,036,225 from the unallocated Wastewater Reserves and $5,000,000 from Capital Improvement Project No. 801508, Recycled Easterly Ag MFRO; and WHEREAS, Staff entered into a Public Improvement Agreement (“Agreement”) with CCL Contracting, Inc., in an amount not to exceed ten million, two hundred forty thousand, six hundred ninety- one dollars ($10,240,691) on July 23, 2024; and
WHEREAS, Staff entered into a Public Improvement Agreement (“Agreement”) with J.R. Filanc Construction Company in an amount not to exceed one million, seven hundred ninety-five thousand, five hundred thirty-four dollars ($1,795,534) on August 21, 2024; and WHEREAS, pursuant to Section 22050 of the Public Contract Code, the City Council must review the emergency action every 14 days, or at its next regularly scheduled meeting, and determine by a four- fifths vote there is a need to continue the action; and WHEREAS, this City Council d esires at this time and deems it to be in the best public interest to continue the emergency action.

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

1. That the above recitations are true.

2. That the City Council finds the failure of the trunk sewer main is a public health and safety emergency; that this emergency will not permit the delay that would result from a competitive bidding 25 Item5.
process; and that the proposed action and expenditure is sti ll necessary to respond to the emergency requiring immediate repair of the trunk sewer main.
26 Item5.

STAFF REPORT

May 21, 2025
File Number 0600-10; A-3556-A; A-3556-B

SUBJECT
APPROVAL OF PUBLIC SERVICE AGREEMENT WITH SHARP BUSINESS SYSTEMS INC. AND XEROX

BUSINESS SOLUTIONS

DEPARTMENT
Information Systems

RECOMMENDATION
Request the City Council adopt Resolution No. 2025 -40, authorizing the Mayor to execute two Public Service Agreements (“PSA”): (1) copier/multifunction device (“MFD”) hardware, software, supplies and service with Sharp Business Systems Inc. (Part A of RFP No. 25-06); and (2) network printer hardware, service, and supplies, duplicating production device hardware, software, and service, and wide format printing device, software, and service with Xerox Business Solutions (Part B and Part C of RFP No. 25-06).

Staff Recommendation: Approval (Information Systems: Robert Van De Hey, Chief Information Officer) Presenter: Robert Van De Hey, Chief Information Officer ESSENTIAL SERVICE – No
COUNCIL PRIORITY –

FISCAL ANALYSIS
The projected cost for the five-year agreement with Sharp Business Systems Inc. for the lease and use of MFD equipment is $319,400 and is budgeted through the 20 30 fiscal year Duplicating Division Budget.

The agreement includes a fixed cost for the leasing of the equipment and an estimated cost per copy or print. The City has the option to buyout equipment at the termination of the agreement for one dollar ($1). Based on previous year’s print impressions, the projected five-year savings compared to the previous agreement is $34,565. Cost savings could increase if the number of printing and copy impressions continue to decline. The cost for the five -year agreement with Xerox Business Solutions for desktop printing services and supplies, production equipment, service, and supplies, and wide format printing equipment, service and supplies is $ 192,479. This i s budgeted through the 20 30 fiscal year in each respective department's budget that purchased the printers. The projected five -year savings compared to previous City expenses for printing services and supplies is $42,771.

27 Item6.

PREVIOUS ACTION
On May 2, 2018, the City Council approved Re solution No. 2018-68, initiating a five -year contract with Kyocera Document Solutions to provide hardware, software, supplies, and services for MFDs throughout City facilities. In the sixth and seventh years, city personnel opted to utilize the two-year extension clause within this contract, while electing to discontinue the annual lease with a $1 buyout option for the devices, thereby maximizing the remaining useful life of the equipment. Concurrently, Resolution No. 2018-68 approved a separate five-year agreement with Image Source, now operating as Visual Edge, for network printer hardware, software, supplies, and services. This contract was similarly extended for an additional two years by City staff. Additionally, Information Systems initiated a five -year leasing agreement with Xerox for color production device hardware, software, and services in the same year, subsequently extending the service agreement by two years to optimize the remaining useful life of the hardware.

BACKGROUND
The City of Escondido leases a fleet of Copier/ MFDs on an original five-year term and two-year extension to ensure we continue to take advantage of efficiency provided by today’s technology at a competitive cost.

The City of Escondido has an original five-year agreement with a two-year extension with Visual Edge for printer service and supplies which was selected to streamline service, monitoring and tracking, support, and supplies.

The City of Escondido has a five -year agreement with Xerox for duplicating production device hardware, software, and service to provide support the City’s print shop which is utilized by all City departments.

We are at the end of the extended lease terms with Kyocera, Visual Edge, and Xerox and have performed an extensive three-part Request for Proposal (“RFP”) in conjunction with City staff and an independent consulting firm with expertise in this industry to ensure integrity in the process and gain insights into the industry. The purpose of RFP No. 25-06 Part A (Copier/MFD Hardware and Software) is to enter into a new lease agreement for a fleet of MFDs; Part B (Networked Printer Fleet) was identified as an opportunity to streamline the process for obtaining service and supplies for the entire network printer fleet resulting in reduced costs and ongoing visibility into printing costs ; and Part C ( Color Production MFD – Duplicating) is to continue to offer cost-effective, professional printing services, and finishing work such as binding, cutting, folding, stapling, hole-punching, and laminating for all City Departments.

The following, along with the Executive Summary (Attachment “3”), contains the details related to R FP No. 25-06:

RFP No. 25-06 Multifunction Copiers, Printers, and Duplicating Hardware, Software and Service

28 Item6.

The RFP included the following components.
 Part A: Copier/MFD/Software (with Wide Format Printer for Development Services)  Part B: Networked Printer Fleet
 Part C: Color Production MFD

Financial Impact
Current Annual
Spend
RFP Results
Expected Annual Costs
Copier/MFD/Software (software is net-new going forward) $70,793 $63,880 Printer/MFP Service + Supplies $18,358 $15,416
Color Production MFD $28,692 $17,066
Wide Format Copy/Print/Scan 0 $6,014
Totals $117,843 $102,376
Expected Annual Savings $15,467

Project Team
The Information Systems team, led by Robert Van De Hey , was formed to evaluate the current requirements, develop a sourcing strategy, and to evaluate vendor responses. Optimizon assisted the City with the creation and distribution of the RFP to interested vendors.

RFP Objectives
The objectives of the RFP were:
 To replace devices that are reaching the end of life.  To gather pricing for device management and usage tracking software.  To establish a new service/supplies contract for the existing networked printer/MFPs fleet.  To replace Duplicating’s color production device that has a lease ending.  To enable secure printing and printing for field staff.

Vendors
The RFP instructions and packets were posted on the City’s website as per City and State requirements.

Please see the attached Executive Summary for details of vendor responses.

RFP Process
The RFP was issued with three (3) components to maximize the n umber of potential participants and to allow the City to put the best contracts in place. The RFP was advertised per City requirements. RFP packets were sent to twelve (12) vendors, and the scoring criteria was shared with the vendors.

The RFP evaluation included two (2) rounds of scoring.

29 Item6.

Round 1:

Analysis was conducted based on each vendor’s response to the terms and conditions, pricing for a period of five (5) years, and equipment configurations.

The scoring criteria was shared with the vendors, and the proposals were scored as follows:

Each question in the RFP was assigned a rank according to importance, and each category was assigned an overall percentage of importance. The City of Escondido and Optimizon carefully ana lyzed each proposal and assigned a score to each vendor’s response in each area. See attached Executive Summary for details on scores and ranking.

Round 2:

The vendors who advanced to Round 2 each participated in a vendor interview. These vendors were provided with a set of questions and were asked to prepare a presentation to address the questions along with a brief demonstration of their proposed copier/MFD devices and software.

Following the interviews, the vendors were narrowed to the finalists as follows:

 Part A Finalists:
o Sharp Electronics Corporation dba Sharp Business Systems Inc. (“Sharp”) o MRC Smart Technology Solutions, Inc. dba Xerox Business Solutions, West (“Xerox”)

 Part B Finalist:
o Xerox
 Part C Finalists:
o Xerox (Xerox Versant 280)
o Sharp (Sharp BP-90C80)

For Part A, the finalists were invited to conduct onsite testing. For Part C, the City visited the vendor locations for additional demonstrations and testing.

 Part A
o Sharp is the top-ranking vendor for RFP No. 25-06 Part A, and the recommendation is to award this component to Sharp.

o In addition to offering competitive pricing, Sharp offered terms and equipment that meet the City’s requirements. The City conducted an onsite demonstration of the Sharp hardware, and the us ers provided positive feedback and indicated a preference for the Sharp hardware above Xerox hardware.

30 Item6.

 Part B
o Xerox is the top-ranking vendor for RFP No. 25-06 Part B, and the recommendation is to award this component to Xerox.

o Xerox offered the most competitive pricing for this component with the least amount of disruption to the current fleet, which the City hopes to consolidate further over time.

 Part C

o Xerox is the top-ranking vendor for RFP No. 25-06 Part C, and the recommendation is to award this component to Xerox.

In addition to offering competitive pricing, Xerox offered terms and equipment that meet the City’s requirements. An added benefit is that the City currently uses Xerox technology which means file compatibility issues are less likely to arise and time spent in additional training will be minimal.

The City visited showrooms to test the Xerox and Sharp equipment for this component, and the users provided positive feedback and indicated a higher level of confidence in the Xerox hardware as compared to the Sharp hardware.

RESOLUTIONS
a) Resolution No. 2025-40

ATTACHMENTS
a) Attachment “1”- Sharp Electronics Corporation dba Sharp Business Systems Inc. Draft PSA b) Attachment “2” - MRC Smart Technology Solutions , Inc. dba Xerox Business Solutions , West Draft PSA
c) Attachment “3”- Executive Summary of RFP No. 25-06
31 Item6.

RESOLUTION NO. 2025-40

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR TO

EXECUTE, ON BEHALF OF THE CITY, TWO PUBLIC SERVICE
AGREEMENTS FOR (1) MULTIFUNCTION COPY, SCANNING,

AND PRINTING DEVICES AND SERVICE WITH SHARP
BUSINESS SY STEMS INC.; AND (2) NETWORKED PRINTER

SERVICE AND SUPPLIES, AND WIDE FORMAT COLOR

PRINTER DEVICE HARDWARE, SOFTWARE , AND SERVICE,

AND DUPLICATING PRODUCTION DEVICE HARDWARE,

SOFTWARE, AND SERVICE WITH XEROX BUSINESS

SOLUTIONS, WEST

WHEREAS, the City of Escondido (“City”) currently has a site management agreement with Kyocera to provide and maintain duplicating equipment for all City of Escondido Facilities, which is set to expire July 31, 2025; and
WHEREAS, the Chief Information Officer recommends executing a new five-year agreement with Sharp Business Systems Inc. for multifunction copy, scanning, and printing devices and service; and WHEREAS, the City currently has a printer service contract with Visual Edge to provide service repair for printers at City of Escondido Facilities which is set to expire June 30, 2025; and WHEREAS, the Chief Information Officer recommends executing a new five-year agreement with MRC Smart Technology Solutions, dba Xerox Business Solutions , West (“Xerox”) for networked printer service and supplies and wide format color printer device hardware, software, and service; and WHEREAS, the City currently has a duplicating production device hardware, software, and service contract with Xerox to provide service repair for printers at City of Escondido Facilities which is set to expire June 30, 2025; and
WHEREAS, the Chief Information Officer recommends executing a new five-year agreement with Xerox for duplicating production device hardware, software, and service; and 32 Item6.

WHEREAS, this City Council desires at this time and deems it to be in the best publi c interest to approve all agreements.

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

1. That the above recitations are true.

2. That the Mayor is authorized to execute, on behalf of the City, an agreement with Sharp Business Systems Inc. for multifunction copy, scanning, and printing devices and service , which is consistent with the drafts attached to the Staff Report and approved by the City Attorney.

3. That the Mayor is authorized to execute, on behalf of the City, an agreement with MRC Smart Technology Solutions, dba Xerox Business Solutions , West for fleet printer service and supplies , Duplicating production device, service and supplies , and a wide -format printer/scanner for cross - departmental use which is consistent with the drafts attached to the Staff Report and approved by the City Attorney.

33 Item6.

Attachment “1”

Public Services Agreement (v2) - 1 - CAO: 04/23/2024

CITY OF ESCONDIDO

PUBLIC SERVICES AGREEMENT
This Public Services Agreement (“Agreement”) is made and entered into as of the last signature date set forth below (“Effective Date”),

Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Rob Van De Hey
760-839-6213
("CITY")

And: Sharp Electronics Corporation
a California corporation
dba Sharp Business Systems Inc.
8670 Argent Street
Santee, CA 92071
Attn: Christopher Hart
858-776-8944
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the performance of the Services described herein.

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms, and conditions set forth herein, and the mutual benefits derived therefrom, the Parties hereby agree as follows:

1. Description of Services. CONTRACTOR shall furnish all of the Services described in the Scope of Work, which is attached to this Agreement as Attachment “A” and incorporated herein by this reference (“Services”).

2. Compensation. In exchange for CONTRACTOR’s completion of the Services, the CITY shall pay, and CONTRACTOR sha ll accept in full, an amount not to exceed the sum of $319,400.

CONTRACTOR shall be compensated only for performance of the Services described in this Agreement. No compensation shall be provided for any other work or services without the CITY’s prior written consent. If this Agreement is amended at any time, additional compensation of CONTRACTOR contained in any subsequent amendments shall not exceed a cumulative total of 25% of the maximum payment provided for in this Section 2, unless approved by resolution of the 34 Item6.

Attachment “1”

Public Services Agreement (v2) - 2 - CAO: 04/23/2024
City Council.

3. Performance. CONTRACTOR shall faithfully perform the Services in a proficient manner, to the satisfaction of the CITY, and in accord with the terms of this Agreement . CONTRACTOR shall be responsible for the professional quality, technical accuracy, timely completion, and coordination of all reports and other inform ation furnished by CONTRACTOR pursuant to this Agreement, except that CONTRACTOR shall not be responsible for the accuracy of information supplied by the CITY.

4. Termination. The Parties may mutually terminate this Agreement through a writing signed by both Parties. The CITY may terminate this Agreement for any reason upon providing CONTRACTOR with 10 days’ advance written notice. CONTRACTOR agrees to cease all work under this Agreement on or before the effective date of any notice of termination. If the CITY terminates this Agreement due to no fault or failure of performance by CONTRACTOR, then CONTRACTOR shall be compensated based on the work satisfactorily performed at the time of such termination. In no event shall CONTRACTOR be entitled to receive more than the amount that would be paid to CONTRACTOR for the full performance of the Services.

5. City Property. All original documents, drawings, electronic media, and other materials prepared by CONTRACTOR pursuant to this Agreement immediately become the exclusive property of the CITY, and shall not be used by CONTRACTOR for any other purpose without the CITY’s prior written consent.

6. Insurance Requirements.
a. CONTRACTOR shall pro cure and maintain , at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Services, and the results of such work, by CONTRACTOR, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, b odily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non -owned autos (Code 9), with limit s no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the CITY and approved in writing by the CITY’s Risk and Safety Division. (3) Workers’ Compensation. Worker's Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit s of no less than $1,000,000 per accident for bodily injury or disease.
(4) If CONTRACTOR maintains broader coverage and/ or higher limits than the minimums otherwise required by this Agreement , the CITY requires and shall be entit led to the broader coverage and/or the higher limits maintained by CONTRACTOR. b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:
(1) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-: FSC VII, or as approved by the CITY.
(2) Additional Insured Status . Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additi onal insured under the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement 35 Item6.

Attachment “1”

Public Services Agreement (v2) - 3 - CAO: 04/23/2024
shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobil e Liability endorsement shall be at least as broad as ISO Form CA 20 01.
(3) Primary Coverage. CONTRACTOR’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the CITY, its officials, officers, agents, employees, and volunteers. Any insurance or self -insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of CONTRACTOR’s insurance and shall not contribute with it. (4) Notice of Cancellation . Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY. (5) Subcontractors. If applicable, CONTRACTOR shall requi re and verify that all subcontractors maintain insurance meeting all the requirements stated in this Agreement, and CONTRACTOR shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
(6) Waiver of Subrogation. CONTRACTOR hereby grants to the CITY a waiver of any right to subrogation that any insurer of CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be nec essary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its agents, representatives, employees and subcontractors.
(7) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent, fulfill some or all of the i nsurance requirements contained in this Agreement under a plan of self - insurance. CONTRACTOR shall only be permitted to utilize such self -insurance if, in the opinion of the CITY, CONTRACTOR’s (i) net worth and (ii) reserves for payment of claims of liability against CONTRACTOR are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. CONTRACTOR’s utilization of self- insurance shall not in any way limit the liabilities assumed by CONTRACTOR pursuant to this Agreement.
(8) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.
c. Verification of Coverage. At the time CONTRACTOR executes this Agreement, CONTRACTOR shall provide the CITY with original Certificates of Insu rance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time. d. Special Risks or Circumstances. The CITY reserves the right , at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. e. No Limitation of Obligations. The insurance requirements in this Agreement, including the types and limits of insurance coverage CONTRACTOR must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including but not limited to any provisions in this Agreement concerning indemnification. 36 Item6.

Attachment “1”

Public Services Agreement (v2) - 4 - CAO: 04/23/2024
f. Failure to comply with any of the insurance requirements in this Agreement, including but not limited to a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement . In the event that CONTRACTOR fails to comply with any such insurance requirements in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to stop work under this Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

7. Indemnification, Duty to Defend, and Hold Harmless.
a. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalt ies, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collect ively, “Claims”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except where caused by the sole negligence or willful misconduct of the CITY. b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall defend, indemnify, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

R9-2013-0001, as amended) of the California Regional Water Quality Control Board, Region 9, San Diego, that the CITY might suffer, incur, or become subject to by reason of, or occurring as a result of, or allegedly caused by, any work performed pursuant to this Agreement. c. All terms and provisions within this Section 7 shall survive the termination of this Agreement.

8. Anti-Assignment Clause. Because the CITY has relied on the particular skills of CONTRACTOR in entering into this Agreement, CONTRACTOR shall not assign, delegate, subcontract, or otherwise transfer any duty or right under this Agreement, including as to any portion of the Services, without the CITY’s prior written consent. Any purported assignment, delegation, subcontract, or other transfer made without the CITY’s consent shall be void and ineffective. Unless CONTRACTOR assigns this entire Agreement, including all rights and duties herein, to a third party with the CITY’s prior written consent, CONTRACTOR shall be the sole payee under this Agreement. Any and all payments made pursuant to the terms of this Agreement are otherwise not assignable.

9. Attorney's Fees and Costs. In any action to enforce the terms and conditions of this Ag reement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

10. Independent Contractor . CONTRACTOR is an independent contractor , and no agency or employment relationship is created by the execution of this Agreement.

11. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR.

12. Merger Clause. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and CONTRACTOR concerning the subject of this A greement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, wri tten or oral, except as otherwise 37 Item6.

Attachment “1”

Public Services Agreement (v2) - 5 - CAO: 04/23/2024
provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

13. Anti-Waiver Clause. None of the provisions of this Agreement shall be waived by the CITY because of previous failure to insist upon strict performance, nor shall any provision be waived because any other provision has been waived by the CITY, in whole or in part.

14. Severability. This Agreement shall be performed and shall be enforceable to the full extent allowed by applicable law, and the illegality, invalidity, waiver, or unenforceability of any provision of this Agreement shall not affect the legality, validity, applicability, or enforceability of the remaining provisions of this Agreement.

15. Governing Law. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of the State of California. Venue for any action arising from this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

16. Counterparts. This Agreement may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by electronic means, including an attachment to an email, shall be effective as delivery of an executed original. The Agreement on file with the City is the copy of the Agreement that shall take precedence if any differences exist between or among copies or counterparts of the Agreement.

17. Provisions Cumulative . The foregoing provisions are cumulative to, in addition to , and not in limitation of any other rights or remedies available to the CITY.

18. Notice. Any statements, communications , or notices to be provided pursuant to this Agreement shall be sent to the attention of the persons indicated herein, and the CITY and CON TRACTOR shall promptly provide the other Party with notice of any changes to such contact information.

19. Business License. CONTRACTOR shall obtain a City of Escondido Business License prior to execution of this Agreement and shall maintain such Business License throughout the term of this Agreement.

20. Compliance with Laws, Permits, and Licenses. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinance s, regulations, rules, and other legal requirements in effect during the term of this A greement. CONTRACTOR shall obtain any and all permits, licenses, and other authorizations necessary to perform the Services. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRA CTOR to comply with this section.

21. Prevailing Wages . If applicable, pursuant to California Labor Code section 1770 et seq. , CONTRACTOR agrees that a prevailing rate and scale of wages, in accordance with applicable laws, shall be paid in performing this Agreement. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes , codes, ordinances, regulations, rules, and other legal requirements pertaining to the payment of prevailing wages. The prevailing rate and scale to be paid shall be the same as t he applicable “General Prevailing Wage Determination” approved by the Department of Industrial Relations as of the Effective Date of this Agreement, which are available online at http://www.dir.ca.gov/oprl/dprewagedetermination.htm and incorporated into this Agreement by this reference . Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section. 38 Item6.

Attachment “1”

Public Services Agreement (v2) - 6 - CAO: 04/23/2024

22. Immigration Reform and Control Act of 1986. CONTRACTOR shall keep itself informed of and shall comply with the Immigration Reform and Control Act of 1986 (“IRCA”). CONTRACTOR represents and warrants that all of its employees and the employees of any subcontractor retained by CONTRACTOR who perform any of the Services under this Agreement, are and will be authorized to perform the Services in full compliance with the IRCA. CONTRACTOR affirms that as a licensed contractor and employer in the State of California, all new employees must produce proof of eligibility to work in the United States within the first three days of employment and that only employees legally eligible to work in the United States will perform the Services. CONTRACTOR agrees to comply with the IRCA before commencing any Services, and continuously throughout the performance of the Services and the term of this Agreement.

23. Effective Date. Unless a different date is provided i n this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below.

IN WITNESS WHEREOF, th is Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Dane White, Mayor

SHARP BUSINESS SYSTEMS

Date: __________________ ___________________________________ Dale Wedge, Branch President

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, CITY ATTORNEY

BY: __________________________

DATE: __________________

THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

39 Item6.

Attachment “1”

Public Services Agreement (v2) - 7 - CAO: 04/23/2024

ATTACHMENT “A”
Scope of Work

A. General

Sharp Business Systems, a California corporation , dba Sharp Business Systems Inc. (“Contractor”) will provide the City of Escondido, a California municipal corporation (“City”) with networked copier fleet device hardware, software, and service.

B. Location

Contractor will provide services at and in relation to the following City facilities:

1. 201 N. Broadway, Escondido, CA 92025 (“City Hall”);

2. 3315 Bear Valley Parkway S., Escondido, CA 92025 (“Sports Park”);

3. 2245 E. Valley Parkway, Escondido, CA 92027 (“East Valley Community Center”);

4. 3440 E. Valley Parkway, Escondido, CA 92027 (“Water Treatment Plant”);

5. 239 S. Kalmia St., Escondido, CA 92025 (“Main Library”);

6. 210 E. Park Ave., Escondido, CA 92025 (“Park Avenue Senior Center”);

7. 475 N. Spruce St., Escondido, CA 92025 (“Public Works”);

8. 1521 S. Hale Ave., Escondido, CA 92029 (“HARRF”);

9. 1163 Centre City, Escondido, CA 92026 (“Police and Fire Headquarters”);

10. 310 N. Quince St., Escondido, CA 92026 (“Fire Station 1”);

11. 421 N. Midway Drive, Escondido, CA 92027 (“Fire Station 2”);

12. 1808 Nutmeg St., Escondido, CA 92026 (“Fire Station 3”);

13. 3301 Bear Valley Parkway, Escondido, CA 92025 (“Fire Station 4”);

14. 2319 Felicita Road, Escondido, CA 92029 (“Fire Station 5”);

15. 1735 Del Dios Road, Escondido, CA 92029 (“Fire Station 6”);

16. 1220 N. Ash St., Escondido, CA 92027 (“Fire Station 7”); and

17. 272 E Via Rancho Pkwy, #171, Escondido, CA 92025 (“Temporary Library”).

C. Services

Services shall be provided per the terms and conditions of this Agreement and Exhibit 1, to this Scope of Work, which is attached hereto and incorporated herein by this reference. In the event of a conclict between this Agreement and Exhibit 1, the terms of this Agreement shall prevail. In addition to the services described in the Agreement, Contractor shall provide toner, service calls, and monitoring reporting software services for the networked copiers described in Exhibit 1.

D. Scheduling

Inquires and scheduling concerns related to this Agreement shall be directed to Heather Inns at [email protected] or 760-839-6261.

E. Contract Price and Payment Terms

The contract price shall not exceed $319,400. The contract price includes all labor, materials, equipment, and transportation required to perform the work. Any additional charges will be submitted to the City of Escondido for pre-approval and will be billed as services are performed. 40 Item6.

Attachment “1”

Public Services Agreement (v2) - 8 - CAO: 04/23/2024
Payment will be made after services have been performed and within 30 days of receipt of an invoice for those services.

This Agreement, along with Contractor’s proposal summarized in Exhibit 1, sets forth the specific terms and conditions under which Contractor agrees to sell specific equipment and provide services to the City. The service rates set forth in Exhibit 1 shall remain firm throughout the term of this Agreement.

F. Term

The term of this Agreement shall be for five years, commencing on the Effective Date of the Agreement.

Contractor acknowledges that the term of this Agreement may extend over multiple City fiscal years, and that work and compensation under this Agreement is contingent on the City Council appropriating funding for and authorizing such work and compensation for those fiscal years.

This Contract may be terminated at the end of the fiscal year for which sufficient funding is not appropriated and authorized. The City is not obligated to pay Contractor for any amounts not duly appropriated and authorized by City Council.

41 Item6.

Exhibit 1
Sharp Business Systems

Page 1 ends

Public Services Agreement (v2) - 1 - CAO: 04/23/2024

Exhibit 1
RFP #25-06: Part A Copier/MFD/Software

The Agreement, along with Sharp Business Systems’ proposal response, outlined in this Exhibit, sets forth the specific terms and conditions under which Sharp Business Systems agrees to sell the specific equipment and provide the services to City of Escondido.

1. Pricing

a. All pricing stated in Sharp Business Systems’ response to RFP # 25-06 Part A Copier/MFD/Software is outlined in this Exhibit.
b. Sharp Business Systems guarantees all pricing outlined in this Exhibit will be fixed for a period of 24 months after the contract has been awarded. Fixed pricing includes pricing for hardware (purchase pricing), software, service, and training.
c. For devices that the City of Escondido may wish to acquire after the price guarantee expires, Sharp Business Systems agrees to offer the City of Escondido a discount over retail pricing (as reported by a 3rd party such as Buyer's Laboratory) equivalent to the discount being offered in this RFP.
d. If the City of Escondido elects to lease any equipment under this agreement:
i. If the FMV lease option is chosen, Sharp Business Systems agrees to be responsible for the return of leased equipment to the Leasing Company at the end of the lease term. This shall include shipping costs, insurance, and any other shipping or equipment repair costs associated with the return of this equipment. ii. The City of Escondido will provide Sharp Business Systems with insurance documentation if required by the Leasing Company when the lease contracts are signed. Sharp Business Systems agrees to be responsible for ensuring that the insurance documentation is delivered to the Lease Company and taking all necessary actions to correct any insurance billing problems. iii. Sharp Business Systems agrees to include in all leasing options and leasing documents non-appropriation and/or funding-out clauses as required by the State Code of California.
iv. There will be no lease documentation fees.
e. For existing equipment owned by the City of Escondido, Sharp Business Systems agrees to pick up and dispose of used equipment if requested at no additional charge to the City of Escondido for up to one year after the new equipment is installed. City of Escondido will provide Sharp Business Systems with a list of all equipment to be removed and disposed of. For the current devices that are to be removed, Sharp Business Systems agrees to either remove and destroy hard drives or wipe the hard drives. In either case, the City of Escondido requires a certificate of completion. Sharp Business Systems will do this at no additional cost to the City of Escondido.

2. Warranties

a. 90-day money back guarantee: Sharp Business Systems offers a 100 percent money-back guarantee for a particular device, regardless of the problem, if notified within 90 days. 42 Item6.

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b. Sharp Business Systems guarantees that each device ordered under this agreement will operate within the specifications stated for sixty (60) months or the number of impressions listed below from the date of installation.
 Copier/MFD – 30 PPM B/W (Sharp BP-70M30, or current model): 750,000 impressions  Copier/MFD – 40 PPM B/W (Sharp BP-70M45, or current model): 1,200,000 impressions  Copier/MFD – 60 PPM B/W (Sharp BP-70M65, or current model): 2,700,000 impressions  Copier/MFD – Color 30 PPM (Sharp BP-70C31, or current model): 750,000 impressions  Copier/MFD – Color 40 PPM (Sharp BP-70C45, or current model): 1,500,00 impressions  Copier/MFD – Color 50 PPM (Sharp BP-70C55, or current model): 2,100,00 impressions  Copier/MFD – Color 60 PPM (Sharp BP-70C65, or current model): 2,700,00 impressions  MFP – 35 PPM Color Laser (Sharp MX-C358F, current model): 300,000 impressions  MFP – 45 PPM B/W Laser (Sharp MX-B468F, or current model): 300,000 impressions c. If any device fails to operate under the specifications stated in section 2.b., Sharp Business Systems will replace the device on a like-for-like basis with the then-current technology as long as the device is kept on a continuous service agreement with Sharp Business Systems and only supplies recommended by the equipment manufacturer are used.

3. Service Contract

Sharp Business Systems has given the City of Escondido the option to purchase service contracts for five (5) years and will bill the City of Escondido for these service contracts Quarterly in Arrears. The service contract will include print controller support, unlimited supplies of toner, developer, drums, all consumable parts, toner waste containers, staples for the copiers, and all other supply items excluding paper, unless otherwise noted. The service contract shall include all parts and Preventative Maintenance (PM) parts as required by the equipment manufacturer to keep all equipment operating within manufacturer specifications. All parts will be replaced with Original Equipment Manufacturer (OEM) parts according to the manufacturer's estimated yields.

Fees for service contracts are outlined in this Exhibit.

4. Service Responses
a. Sharp Business Systems guarantees that the average time it will take a technician to acknowledge the City of Escondido's service request will be one (1) hour once a service call has been placed with Sharp Business Systems, as calculated from the time the service call is placed until a service technician calls the site to provide an estimated time of arrival. b. Average Response Time (Monday – Friday 8am – 5pm, excluding Holidays):

Sharp Business Systems guarantees that the average in-person service response time for each device will be three and a half (3.5) hours, as calculated from the time the service call is placed by City of Escondido to the factory-trained service technician's on-site arrival in a 12-month trailing average, including preventive maintenance calls.
c. Maximum Response Time (Monday – Friday 8am – 5pm, excluding Holidays):

Sharp Business Systems guarantees that the maximum in-person service response time, as calculated from the time the service call is placed by the City to the factory-trained service technician's on-site arrival, including preventive maintenance calls, will be four (4) hours. d. Compensation: If Sharp Business Systems is unable for any reason to respond within the maximum response time as listed in section 4.c., Sharp Business Systems will compensate the City of 43 Item6.

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Sharp Business Systems

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Escondido with a credit equal to 5% of the monthly service contract for that device, per call with a late response time.
e. For the entire life of each device covered under a service contract with Sharp Business Systems, Sharp Business Systems will
1) replace all parts according to the manufacturer's recommended replacement schedule 2) provide "Preventative Maintenance" parts according to the manufacturer's recommended replacement schedule.

In addition, if any part fails before reaching the manufacturer's estimated life expectancy, Sharp Business Systems will replace failed parts as long as the device is covered under a service contract by Sharp Business Systems.
f. Sharp Business Systems guarantees that each device will average the number of impressions between service calls (IBCs) listed below. The averages shall include Preventative Maintenance (PM) service calls and be calculated during any immediately preceding 12-month period. These calculations will exclude service calls caused by operator error, and the guarantee will remain in effect while the equipment is continuously under a service agreement with Sharp Business Systems.
 Copier/MFD – 30 PPM B/W (Sharp BP-70M31, or current model): 12,500 IBCs  Copier/MFD – 40 PPM B/W (Sharp BP-70M45, or current model): 20,000 IBCs  Copier/MFD – 60 PPM B/W (Sharp BP-70M65, or current model): 45,000 IBCs  Copier/MFD – Color 30 PPM (Sharp BP-70C31, or current model): 12,500 IBCs  Copier/MFD – Color 40 PPM (Sharp BP-70C45, or current model): 25,000 IBCs  Copier/MFD – Color 50 PPM (Sharp BP-70C55, or current model): 35,000 IBCs  Copier/MFD – Color 60 PPM (Sharp BP-70C65, or current model): 45,000 IBCs  MFP – 35 PPM Color Laser (Sharp MX-C358F, or current model): 5,000 IBCs  MFP – 45 PPM B/W Laser (Sharp MX-B468F, or current model): 5,000 IBCs g. If any device does not meet the average number of impressions between service calls as described above, Sharp Business Systems will replace the device on a like-for-like basis with the then-current technology.
h. Sharp Business Systems agrees to provide only Original Equipment Manufacturer parts and supplies when repairing, servicing, or supplying consumable items for each device. Failure to do so will constitute a breach of contract and require Sharp Business Systems to fully compensate the City for any real or perceived loss or damage.
i. Sharp Business Systems will provide a loaner device of equal or superior capabilities to the City of Escondido upon request if any device installed by Sharp Business Systems is unable to perform to the Cities specifications for more than eight (8) hours of normal business operation. j. Customer Support will be available by phone at no additional charge during normal business hours (Monday through Friday, 8 a.m. to 5 p.m.).
k. For issues related to service responses, supplies management, non-reporting devices, etc., Sharp Business Systems will provide customer support by email. l. Upon request, Sharp Business Systems will provide a service portal where the City of Escondido can place service calls and track the status of service calls. m. All copies run by any representative of Sharp Business Systems will be tracked and credited back to the City of Escondido’s account at the end of each service-billing period.

5. Evaluations of Service Performance

44 Item6.

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a. The City of Escondido and/or its appointed agent reserve the right to monitor and evaluate all aspects of Sharp Business Systems’ invoicing and service work that is executed by Sharp Business Systems for all equipment that is covered under a service contract by Sharp Business Systems on an ongoing basis. Sharp Business Systems agrees to provide all requested service contract data, billing and invoicing data, and/or service call history data within ten (10) business days of such a request whether made by telephone or e-mail. In addition, Sharp Business Systems agrees not to object to or hinder in any way the ongoing evaluation of cost, volume, equipment performance and Sharp Business Systems 's and or its subcontractor’s performance of services provided to the City of Escondido.
b. In addition, Sharp Business Systems agrees to pay to the City of Escondido a $50.00 penalty per consecutive day, beyond ten (10) business days, that Sharp Business Systems delays delivering service contract data, billing and/or invoicing data, and/or service call history data. c. Sharp Business Systems will provide the pages from the service manual indicating the manufacturer's replacement schedule for preventative maintenance (PM) parts, including parts names that may be included in PM Kits, and manufacture part numbers to the City of Escondido. (This information will be used by the City of Escondido to evaluate service work that is being performed by Sharp Business Systems.)
d. Sharp Business Systems will deliver monthly reports in an electronic format acceptable to the City of Escondido and/or its agent. The reports will be formatted in an acceptable manner and include the following data points for each device acquired from Sharp Business Systems:
 make/model
 serial number
 vendor ID number
 location/room number
 monthly meter reading
 All service calls performed during the past thirty (30) days  The date and time the service call was placed
 The date and time the technician arrived onsite for the service call  The beginning meter reading of the service call
 The ending meter reading of the service call
 A complete description of the reason for each call
 The remedy provided by Supplier for each call
 A complete list of all parts including the manufacturer’s part numbers that were required to complete each service call
All service calls will be recorded and be categorized as one of the following:
 Service call
 Return with parts call
 A call back
 Operator error call
 Courtesy call
These monthly reports shall be provided at no additional expense to the City of Escondido and/or its agent for the life of the equipment.

6. Equipment Delivery and Timing

a. Sharp Business Systems guarantees that all equipment and/or software will be installed and be fully operational within thirty (30) days of receipt of a purchase order. 45 Item6.

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b. Sharp Business Systems agrees to pay, as liquidated damages, the sum of $50.00 per device per consecutive calendar day after 30 days if delivery is delayed by Sharp Business Systems or its suppliers, unless the City of Escondido delays delivery. c. Sharp Business Systems agrees to replace any items and/or components that are received with damages within fourteen (14) consecutive calendar days after the notification of damage. d. Sharp Business Systems agrees to pay, as liquidated damages, the sum of $50.00 per device per consecutive calendar day after fourteen (14) days from the date of notification until the replacement of damaged items have been received by the City of Escondido. e. Sharp Business Systems agrees to install the most current version(s) of firmware into all devices prior to installation.

7. Equipment Relocation

If, during the contract period, the need arises to move or relocate equipment that was acquired under this contract within the same building or from one building to another, Sharp Business Systems agrees to move the equipment at no additional charge.

8. Training

a. Sharp Business Systems agrees to schedule, in advance, the installation and simultaneous basic instruction of the operation of the new equipment.
b. Sharp Business Systems agrees to schedule, in advance at each location’s convenience, In-Service training (2 operators for each device) covering the complete operation of the new equipment as needed.
c. Sharp Business Systems agrees to provide a training video to City of Escondido.

9. Invoicing

a. Sharp Business Systems agrees to provide invoices in an electronic format acceptable to the City of Escondido and/or its agent. The invoices will be delivered by email. The invoices will be formatted in an acceptable manner and include make/model, serial number, vendor ID number, location, room number, equipment lease payment, and beginning and ending meter readings. It is our understanding that all invoices will be due 30 days, from the date of the invoice. b. If the City of Escondido disputes any amount included in an invoice, then (a) the City of Escondido (or its agent) will notify Sharp Business Systems in writing or by email, (b) such notice shall include a description of the items the City of Escondido are disputing and the reason such items are being disputed and (c) Sharp Business Systems shall promptly exercise its best effort to work with the City of Escondido and/or its agent to resolve such disputes. Pending resolution of disputed amount, the City of Escondido will pay any and all undisputed amounts within thirty (30) days of the invoice date; however, the due date of all disputed charges will be suspended until the dispute is resolved and Sharp Business Systems submits a corrected invoice for payment. The corrected invoice will be due thirty (30) days from the date of the correct invoice.

10. Data Security

a. For devices that are acquired under this contract that are owned by City of Escondido at the end-of- life, Sharp Business Systems agrees to de-install each hard drive and turn each hard drive over to the 46 Item6.

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Sharp Business Systems

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custody of personnel authorized by City of Escondido so that City of Escondido may oversee the complete destruction of the hard drive and any confidential data contained therein. If a replacement hard drive is needed the cost is $100 per drive. There will be a fee of $50 per device if a certificate of destruction is needed.
b. Sharp Business Systems agrees that overwrite software is included in the price and there would be no additional fee for Sharp Business Systems to take responsibility to run the overwrite software at the end-of-life. In the event that Sharp Business Systems takes responsibility to run the overwrite software, the City of Escondido requires a certificate of completion for each device. c. Sharp Business Systems agrees that no hard drive for any reason for any device acquired under this contract will be removed from the cities site at any time by Sharp Business Systems unless all data contained in the hard drive has been removed utilizing software that will overwrite the hard drive, and that removing a hard drive from the Cities site without confirming that the hard drive has been erased will constitute a breach of contract.
d. Sharp Business Systems understands that documents left in or on any device may contain confidential information that must be protected and agrees that all documents found in or on any device by Sharp Business Systems will be handed to authorized city personnel and that the documents will not be placed in a trash can or recycle bin by any representative of Sharp Business Systems.

11. Supplies

a. Sharp Business Systems uses MICAS to collect meters for billing and for monitoring supplies management. There is no additional cost for the software. All data collected by the software tool will remain the property of the City of Escondido. The City of Escondido will be provided with full and direct access to MICAS upon request.
b. Sharp Business Systems agrees to ship and/or deliver supplies (including toner and staples for the copiers) to the city for no additional charge.
c. Sharp Business Systems will ship toner automatically based on the usage of each device without City of Escondido having to place an order.
d. If the City of Escondido places an order for toner, Sharp Business Systems will deliver toner within two (2) business days.
e. Sharp Business Systems agrees to pick up the empty/used toner containers at no additional cost to the city.

12. Extended Service Coverage

When any device ordered from this contract is five (5) years old, if the device has not reached the 60- month volume (see 2. b.) and the device is experiencing an average of one (1) or fewer service calls per month, Sharp Business Systems agrees to offer extended coverage for years 6 and 7 with the same level of service terms outlined in this Exhibit. Service rates are estimated to increase 10% per year for years 6 and

7. 13. Cooperative Agreements

Sharp Business Systems agrees that the City of Escondido will not be required to sign on to any cooperative agreements, governmental or otherwise, or agree to any additional terms and conditions contained within any cooperative agreements.
47 Item6.

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Sharp Business Systems

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14. PaperCut MF Software

a. Sharp Business Systems is offering Paper MF (the current version at the time of the order) to the City of Escondido as a Device Management and Usage Tracking Solution for its fleet of approximately 42 copier/MFDs. The management of devices directly connected to computers is out of scope. b. PaperCut MF provides the ability for the sender to have their document(s) printed only if their ID code is entered at the machine. The user should be able to invoke this function at any device on the network which is configured for this purpose.
c. PaperCut MF has the ability to support printing from iPads and iPhones.

15. PaperCut MF Support

a. Placing a Support Call: Support calls may be placed by phone, email, or portal. All calls will be logged, and a ticket number will be issued. Someone from Sharp Business Systems will respond back within an hour to confirm the call. Software support will be handled just like an equipment service call but will be escalated more quickly since the issue may affect more than one device. Sharp Business Systems has onsite and remote solution engineers to support Papercut. Sharp Business Systems will decide on the quickest and more effective way to handle the issue once the problem is diagnosed. It could involve onsite support, remote support, or both.
b. Priority 1: Critical: For the purpose of this contract, “Critical” is defined as any system status where a major feature fails to function, the system is not functioning, or a major business process is seriously disrupted.

Target Response is 1 hours and target resolution is 2 hours. c. Compensation for Exceeding the Target Resolution Period for Priority 1 Issues: To assure the City of Escondido that Sharp Business Systems ' intention is to resolve issues within the period stated in (question b), Sharp Business Systems agrees to compensate the City of Escondido $250 each time the resolution for a Priority 1 Issue exceeds the proposed target response. d. Priority 2: High: For the purpose of this contract, “High” is defined as any system status where a major feature intermittently fails to function, or a major business process is intermittently seriously disrupted.

Target Response is 1 hours and target resolution is 3 hours. e. Compensation for Exceeding the Target Resolution Period for Priority 2 Issues: To assure the City of Escondido that Sharp Business Systems ' intention is to resolve issues within the period stated in (question d), Sharp Business Systems agree to compensate the City of Escondido $100 each time the resolution for a Priority 2 Issue exceeds the proposed target response. f. Priority 3: Medium: For the purpose of this contract, “Medium” is defined as any system status where a feature intermittently fails to function, or a business process is intermittently disrupted.

Target Response is 1 hours and target resolution is 4 hours. g. Priority 4: Low: For the purpose of this contract, “Low” is defined as any support call related to a minor usability, presentation or cosmetic problem that does not affect the ability to use the product.

Target Response is 1 hours and target resolution is 4 hours.

16. Performance Bond

Upon receipt of an order, Sharp Business Systems agrees to issue a performance bond to the City of Escondido which is equal to 25% of the total cost of hardware and service costs projected for 60 months 48 Item6.

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Sharp Business Systems

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for all equipment and support purchased and/or leased under this agreement. The City of Escondido will cash the performance bond if Sharp Business Systems does not execute the terms and conditions of the contract as agreed. The performance bond shall have a life of 60 months from the date it is accepted by City of Escondido; however, a 1-year bond that is renewable for an additional four (4) years is acceptable.

Sharp Business Systems agrees to allow the City of Escondido to delay payment (with no late fees or penalties) until the performance bond has been delivered to the City of Escondido.

49 Item6.

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Sharp Business Systems

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Exhibit 1: Pricing

Lease Options:

Lease Company: DLL
60-month $1 Buyout:
 Monthly Lease Rate Factor: 0.019604
 Quarterly Lease Rate Factor: 0.059061

Lease Company: Wells Fargo
60-month FMV:
 Monthly Lease Rate Factor: 0.02030
 Quarterly Lease Rate Factor: 0.0600

PaperCut MF Pricing
 $318.00 per device for Embedded PaperCut MF License
 $25 per device for install and configuration support
 $175 per card reader (HID Card readers will be embedded and connected within the MFP. End user will simply place their card over the designated area to authenticate.)

Maintenance Pricing
 $2,028.60 paid annually for Years 1-5:
-OR-
 $10,143.00 paid upfront for 5 years:

Make/Model Purchase Price
Sharp BP-70M31 (31 PPM)
Copier/MFD – B/W 30 PPM Segment $2,495.11
Included:
- Network Printing and Scanning: Required
- Single Pass Duplex Scanning: Required
- Color Scanning: Required
- Paper Types supported from by-pass: Avery Labels, Index Paper 90lbs., Cover stock 110lbs., and Envelopes:

Required
- 300-sheet Document Feeder SPDS (8.5 x 11 – 11x 17): Required - Duplexing 8.5 x 11 – 11x 17: Required
- 550-sheet Paper Tray: Standard
- 550-sheet Paper Tray: Standard
- By-Pass Tray (50 Sheets): Standard
- PostScript Level 3 Print Driver: MX-PK13L
- Scan in a searchable PDF format: MX-EB20L
- Additional 2,100-sheet tray: BP-DE13
- Faxing Unit (Analog): BP-FX11
- Inner Finisher with Stapling: BP-FN11
- External 1-tray Finisher with stapling: BP-FN13
- External 2-tray finisher with stapling and 3-hole punch: BP- FN15 & MX-PN16B
Inc.

Inc.
$107.56
$305.56
$525.56
$701.56

$1,070.67
Service Cost-Per-Impression Year 1-2: $0.00320 per B/W impression 50 Item6.

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Sharp Business Systems

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Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Service Cost-Per-Impression Year 5:
$0.00340 per B/W impression
$0.00350 per B/W impression
$0.00370 per B/W impression
Service rates include staples.

Sharp BP-70M45 (45PPM)
Copier/MFD – B/W 40 PPM Segment $3138.00
Included:
- Network Printing and Scanning: Required
- Single Pass Duplex Scanning: Required
- Color Scanning: Required
- Paper Types supported from by-pass: Index Paper 90lbs. and Cover stock 110lbs. - 300-sheet Document Feeder SPDS (8.5 x 11 – 11x 17): Required - Duplexing 8.5 x 11 – 11x 17: Required
- 550-sheet Paper Tray: Standard
- 550-sheet Paper Tray: Standard
- 1,100-sheet Paper Tray: Inc.
- By-Pass Tray (100 Sheets): Standard
- PostScript Level 3 Print Driver: MX-PK13L
- Scan in a searchable PDF format: MX-EB20L
- Faxing Unit (Analog): BP-FX11
- Inner Finisher with Stapling: BP-FN11
- External 2-tray Finisher with stapling: BP-FN13
- External 2-tray finisher with stapling and 3-hole punch: BP- FN15 & MX-PN16B
Inc.

Inc.
$305.56
$525.56
$701.56

$1,070.67
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Service Cost-Per-Impression Year 5:
$0.00320 per B/W impression
$0.00340 per B/W impression
$0.00350 per B/W impression
$0.00370 per B/W impression
Service rates include staples.

Sharp BP-70M65 (65PPM)
Copier/MFD – B/W 60 PPM Segment $4,247.78
Included:
- Network Printing and Scanning: Required
- Single Pass Duplex Scanning: Required
- Color Scanning: Required
- Paper Types supported from by-pass: Index Paper 90lbs. and Cover stock 110lbs. - 300-sheet Document Feeder SPDS (8.5 x 11 – 11x 17): Required - Duplexing 8.5 x 11 – 11x 17: Required
- 550-sheet Paper Tray: Standard
- 550-sheet Paper Tray: Standard
- 2,100-sheet Paper Tray: Inc.
- By-Pass Tray (100 Sheets): Standard
- PostScript Level 3 Print Driver: MX-PK13L
- Scan in a searchable PDF format: MX-EB20L
Inc.

Inc.
51 Item6.

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- Faxing Unit (Analog): BP-FX11
- External 2-tray Finisher with stapling: BP-FN15
- External 2-tray finisher with stapling and 3-hole punch: BP- FN15 & MX-PN16B
$305.56
$862.89

$1,070.67
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Service Cost-Per-Impression Year 5:
$0.00320 per B/W impression
$0.00340 per B/W impression
$0.00350 per B/W impression
$0.00370 per B/W impression
Service rates include staples.

Sharp BP-70C31 (31|31PPM)
Copier/MFD – Color 30 PPM Segment $3,174.04
Included:
- Network Printing and Scanning: Required
- PostScript Level 3 Print Driver: Required
- Single Pass Duplex Scanning: Required
- Color Scanning: Required
- Paper Types supported from by-pass: Index Paper 90lbs., Cover stock 110lbs., envelopes, and Avery Labels - 280-sheet Document Feeder SPDS (8.5 x 11 – 11x 17): Required - Duplexing 8.5 x 11 – 11x 17: Required
- 550-sheet Paper Tray: Standard
- 550-sheet Paper Tray: Standard
- By-Pass Tray (100 Sheets): Standard
- Scan in a searchable PDF format: MX-PK13L
- Additional Paper Tray 2,100-sheets: BP-DE15
- Faxing Unit (Analog): BP-FX11
- Inner Finisher with Stapling: BP-FN11
- External 2-tray Finisher with stapling: BP-FN13
- External 2-tray finisher with stapling and 3-hole punch: BP- FN15 & MX-PN16B
Inc.
$266.44
$305.56
$525.56
$701.56

$1,070.67
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Service Cost-Per-Impression Year 5:
$0.00320 per B/W impression
$0.0320 per Color impression
$0.00340 per B/W impression
$0.0340 per Color impression
$0.00350 per B/W impression
$0.0350 per Color impression
$0.00370 per B/W impression
$0.0370 per Color impression
Service rates include staples.

Sharp BP-70C45 (45|45PPM)
Copier/MFD – Color 40 PPM Segment $4,359.60
Included:
- Network Printing and Scanning: Required
- PostScript Level 3 Print Driver: Required
- Single Pass Duplex Scanning: Required
52 Item6.

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- Color Scanning: Required
- Paper Types supported from by-pass: Index Paper 90lbs., Cover stock 110lbs., envelopes, and Avery Labels - 300-sheet Document Feeder SPDS (8.5 x 11 – 11x 17): Required - Duplexing 8.5 x 11 – 11x 17: Required
- 550-sheet Paper Tray: Standard
- 550-sheet Paper Tray: Standard
- 2,100-sheet Paper Tray: Inc.
- By-Pass Tray (100 Sheets): Standard
- Scan in a searchable PDF format: MX-EB20L
- Faxing Unit (Analog): BP-FX11
- Inner Finisher with Stapling: BP-FN11
- External 2-tray Finisher with stapling: BP-FN13
- External 2-tray finisher with stapling and 3-hole punch: BP- FN15 & MX-PN16B
Inc.
$305.56
$525.56
$701.56

$1,070.67
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Sharp BP-70C55 (55|55PPM)
Copier/MFD – Color 50 PPM Segment $4,682.27
Included:
- Network Printing and Scanning: Required
- PostScript Level 3 Print Driver: Required
- Single Pass Duplex Scanning: Required
- Color Scanning: Required
- Paper Types supported from by-pass: Index Paper 90lbs. and Cover stock 110lbs. - 300-sheet Document Feeder SPDS (8.5 x 11 – 11x 17): Required - Duplexing 8.5 x 11 – 11x 17: Required
- 550-sheet Paper Tray: Standard
- 550-sheet Paper Tray: Standard
- 2,100-sheet Paper Tray: Inc.
- By-Pass Tray (100 Sheets): Standard
- Scan in a searchable PDF format: MX-EB20L
- Faxing Unit (Analog): BP-FX11
- External 2-tray Finisher with stapling: BP-FN15
- External 2-tray finisher with stapling and 3-hole punch: BP- FN15 & MX-PN16B
Inc.
$305.56
$862.89

$1,070.67
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:
$0.00320 per B/W impression
$0.0320 per Color impression
$0.00340 per B/W impression
53 Item6.

Exhibit 1
Sharp Business Systems

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Service Cost-Per-Impression Year 4:

Service Cost-Per-Impression Year 5:
$0.0340 per Color impression
$0.00350 per B/W impression
$0.0350 per Color impression
$0.00370 per B/W impression
$0.0370 per Color impression
Service rates include staples.

Sharp BP-70C65 (65|65 PPM)
Copier/MFD – Color 60 PPM Segment $5,440.04
Included:
- Network Printing and Scanning: Required
- PostScript Level 3 Print Driver: Required
- Single Pass Duplex Scanning: Required
- Color Scanning: Required
- Paper Types supported from by-pass: Index Paper 90lbs. and Cover stock 110lbs. - 300-sheet Document Feeder SPDS (8.5 x 11 – 11x 17): Required - Duplexing 8.5 x 11 – 11x 17: Required
- 550-sheet Paper Tray: Standard
- 550-sheet Paper Tray: Standard
- 2,100-sheet Paper Tray: Inc.
- By-Pass Tray (100 Sheets): Standard
- Scan in a searchable PDF format: MX-EB20L
- Additional Paper Tray 3,000-sheets: BP-LC10
- Faxing Unit (Analog): BP-FX11
- External 2-tray Finisher with stapling: BP-FN15
- External 2-tray finisher with stapling and 3-hole punch: BP- FN15 & MX-PN16B
Inc.
$400.89
$305.56
$862.89

$1,070.67
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Sharp MX-C358F (35|35 PPM)
MFP – 35 Color Laser Segment $1,259.00
Included:
- Network Printing and Scanning: Required
- PostScript Level 3 Print Driver: Required
- Paper Types supported: Envelopes and Avery Labels.
- Duplexing 8.5 x 11 – 8.5x 14: Required
- 250-sheet Paper Tray: Standard
- Multi-Purpose Tray (100 Sheets): Standard
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Sharp Business Systems

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- This device is fully compatible with PaperCut MF including user authentication at the device user interface and release of held print jobs.
- Additional 550-sheet Tray: MX-CS29 $216.00
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Service Cost-Per-Impression Year 5:
$0.00640 per B/W impression
$0.0640 per Color impression
$0.0070 per B/W impression
$0.070 per Color impression
$0.00720 per B/W impression
$0.0720 per Color impression
$0.00750 per B/W impression
$0.0750 per Color impression
Service rates include staples.

Sharp MX-B468F (46 PPM)
MFP – 45 B/W Laser Segment $707.00
Included:
- Network Printing and Scanning: Required
- PostScript Level 3 Print Driver: Required
- Paper Types supported: Envelopes and Avery Labels.
- Duplexing 8.5 x 11 – 8.5x 14: Required
- 550-sheet Paper Tray: Standard
- Multi-Purpose Tray (100 Sheets): Standard
- This device is fully compatible with PaperCut MF including user authentication at the device user interface and release of held print jobs.
- Additional 250-sheet Tray: MX-CS31 $96.00
Service Cost-Per-Impression Year 1-2:

Service Cost-Per-Impression Year 3:

Service Cost-Per-Impression Year 4:

Service Cost-Per-Impression Year 5:
$0.00620 per B/W impression
$0.00680 per B/W impression
$0.00700 per B/W impression
$0.00750 per B/W impression
Service rates include staples.

55 Item6.

Exhibit 1
Sharp Business Systems

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City of Escondido - Escondido, CA
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Sharp Business Systems

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Statement of Work (SOW)
Project: PaperCut MF Deployment for City of Escondido
Prepared by: Sharp Business Systems
Prepared for: City of Escondido
Date: [Insert Date]

1. Project Overview
Sharp Business Systems will deploy and configure PaperCut MF, including Mobility Print, in the City of Escondido’s existing environment.

This engagement covers installation, configuration, testing, and handover of PaperCut MF, enabling secure printing from Windows, macOS, iOS, and iPadOS devices across internal and external networks.

2. Customer Environment
 Operating Systems: Predominantly Windows OS environment utilizing Microsoft 365; limited macOS workstations  Mobile Devices: Extensive fleet of iPhones and iPads
 Network Zones: Internal LAN and external VPN/DMZ access  Authentication: Proximity Kantech badges for badge-based authentication

3. Objectives
Sharp Business Systems will comprehensively install and configure PaperCut MF and Mobility Print, ensuring seamless, secure, and efficient print management across multiple device types and networks. Specifically, Mobility Print will support convenient printing for mobile users, enhancing productivity for City personnel using iPhones and iPads. The implementation will integrate Kantech proximity badges for secure and streamlined user authentication, significantly enhancing user convenience and document security. A rigorous validation phase will ensure system reliability and performance, meeting all cybersecurity, functionality, and operational standards. Comprehensive documentation and targeted training sessions will be provided, empowering the City’s IT staff with the knowledge to effectively manage and support the system independently.

4. Scope of Work (Sample, this will be more defined before work is done)  Discovery & Planning: Infrastructure review, requirement gathering, detailed deployment planning  Installation: Deployment of PaperCut MF server components and necessary print drivers  Configuration: Establishment of print queues, Mobility Print setup, authentication methods, and security protocols  Integration: Badge reader configuration for Kantech proximity badges  Testing: Comprehensive testing across functional, security, and performance parameters  Documentation & Training: Creation and delivery of detailed configuration guides, user manuals, and comprehensive training  Handover & Support: Formal handover and ongoing support for 30 days post-deployment

5. Roles and Responsibilities (Draft only, more names needed) Role Responsibility
Sharp Business Systems End-to-end deployment, configuration, documentation James Robinson (Installer) Lead installation and configuration, onsite support City IT Team Provide network access, assist with testing, receive training

6. Software Information
i. Market Introduction: PaperCut was first introduced in 1998 as a robust print management solution. ii. Proposed Version: PaperCut MF Version 23.1 (released March 2025) – currently the latest available version. iii. Last Major Upgrade & Update Schedule:
 Last major upgrade: Version 23.0, released January 2025  Regular updates: Quarterly minor updates and annual major upgrades iv. Cybersecurity Measures:
 Secure communication (TLS 1.2+)
 Regular vulnerability assessments and penetration testing  Adherence to NIST Cybersecurity Framework and GDPR standards  Role-based access control (RBAC)
 Digital code signing and executable integrity checks
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Sharp Business Systems

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v. Update Process:
 Assessment & Backup: Review update details, perform system backup  Staging: Apply updates in test environments
 Deployment: Scheduled updates applied via PaperCut Admin Console  Verification: Post-update validation and service checks  Documentation: Maintain records of updates and configuration adjustments

7. Authentication & Access Control
 Integration of Kantech badge reader system for secure print release  Secure mapping of badges to user accounts
 Implementation of robust, secure release protocols

8. Implementation Plan & Schedule (Sample only, not the final) Phase Activities Duration
Discovery Requirements gathering, infrastructure assessment 2 business days Installation Server setup, driver installations 1 business day Configuration Mobility Print, authentication, print queues setup 2 business days Testing Comprehensive validation 1 business day
Training Documentation, live training session 1 business day Handover & Support Final acceptance, post-deployment support Ongoing

9. Fees & Payment Terms
 Professional Services: [Included in RFP Proposal]
 Licensing: Licenses purchased through Sharp Business Systems  Payment Terms: Included in FRP

10. Acceptance Criteria
 Full functionality of PaperCut MF and Mobility Print
 Successful badge-based authentication
 Verified printing from Windows, macOS, iPhone, and iPad on all network types  Completed documentation and effective training sessions

11. Terms & Conditions
 Governed by Sharp Business Systems Master Services Agreement  Additional support post-30 days available under separate agreement

Approval
Signature: _________________________ Date: ________________ Name: ____________________________ Title: _________________

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Sharp Business Systems

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63 Item6.

Attachment “2”

Public Services Agreement (v2) - 1 - CAO: 04/23/2024

CITY OF ESCONDIDO

PUBLIC SERVICES AGREEMENT
This Public Services Agreement (“Agreement”) is made and entered into as of the last signature date set forth below (“Effective Date”),

Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Rob Van De Hey
760-839-6213
("CITY")

And: MRC Smart Technology Solutions, Inc
dba Xerox Business Solutions, West
a California corporation
5657 Copley Drive
San Diego, CA 92111
Attn: Erik Masi
619-538-9162
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the performance of the Services described herein.

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms, and conditions set forth herein, and the mutual benefits derived therefrom, the Parties hereby agree as follows:

2. Compensation. In exchange for CONTRACTOR’s completion of the Services, the CITY shall pay, and CONTRACTOR sha ll accept in full, an amount not to exceed the sum of $200,000.

CONTRACTOR shall be compensated only for performance of the Services described in this Agreement. No compensation shall be provided for any other work or services without the CITY’s prior written consent. If this Agreement is amended at any time, additional compensation of CONTRACTOR contained in any subsequent amendments shall not exceed a cumul ative total of 25% of the maximum payment provided for in this Section 2, unless approved by resolution of the 64 Item6.

Attachment “2”

Public Services Agreement (v2) - 2 - CAO: 04/23/2024
City Council.

3. Performance. CONTRACTOR shall faithfully perform the Services in a proficient manner, to the satisfaction of the CITY, and in accord with the terms of this Agreement. CONTRACTOR shall be responsible for the professional quality, technical accuracy, timely completion, and coordination of all reports and other information furnished by CONTRACTOR pursuant to this Agreement, except that CONTRACTOR shall not be responsible for the accuracy of information supplied by the CITY.

5. City Property. All original documents, drawings, electronic media, and other materials prepared by CONTRACTOR pursuant to this Agreement immediately become the exclusive property of the CITY, and shall not be us ed by CONTRACTOR for any other purpose without the CITY’s prior written consent.

6. Insurance Requirements.
a. CONTRACTOR shall pro cure and maintain , at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Services, and the results of such work, by CONTRACTOR, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, b odily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non -owned autos (Code 9), with limit s no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the CITY and approved in writing by the CITY’s Risk and Safety Division. (3) Workers’ Compensation. Worker's Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit s of no less than $1,000,000 per accident for bodily injury or disease.
(4) If CONTRACTOR maintains broader coverage and/ or higher limits than t he minimums otherwise required by this Agreement , the CITY requires and shall be entit led to the broader coverage and/or the higher limits maintained by CONTRACTOR. b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:
(1) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-: FSC VII, or as approved by the CITY.
(2) Additional Insured Status . Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additional insured un der the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement 65 Item6.

Attachment “2”

9. Attorney's Fees and Costs. In any action to enforce the terms and conditions of this Ag reement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

10. Independent Contractor . CONTRACTOR is an independent contractor , and no agency or employment relationship is created by the execution of this Agreement.

11. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR.

Attachment “2”

17. Provisions Cumulative . The foregoing provisions are cumulative to, in addition to , and not in limitation of any other rights or remedies available to the CITY.

19. Business License. CONTRACTOR shall obtain a City of Escondido Business License prior to execution of this Agreement and shall maintain such Business License throughout the term of this Agreement.

Attachment “2”

Public Services Agreement (v2) - 6 - CAO: 04/23/2024

23. Effective Date. Unless a different date is provided in this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below. (SIGNATURE PAGE FOLLOWS)

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Attachment “2”

Public Services Agreement (v2) - 7 - CAO: 04/23/2024
IN WITNESS WHEREOF, th is Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Dane White, Mayor

MRC SMART TECHNOLOGY SOLUTIONS, INC

Date: __________________ ___________________________________ William Mello, Vice President

Date: __________________ ___________________________________ Lisa O’Flynn, Chief Financial Officer

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, CITY ATTORNEY

BY: __________________________

DATE: __________________

THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

70 Item6.

Attachment “2”

Public Services Agreement (v2) - 8 - CAO: 04/23/2024
ATTACHMENT “A”
Scope of Work

A. General

MRC Smart Technology Solutions, Inc , a California corporation (“Contractor”) will provide the City of Escondido, a California municipal corporation (“City”) with networked printer fleet , duplicating production, and wide format printing/scanning device hardware, software, and service.