Hemet City Council
February 28, 2023

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Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

(2) Metal storage containers shall be concealed from view from the public right-of-way and adjacent land uses to the extent possible through placement on the site behind the primary building, or appropriate screening by walls, fences or landscaping.
(3) The color of the metal storage container shall be painted a neutral color or match or complement the main building color. The container shall blend in with the surrounding area and buildings to limit its appearance as much as possible.
(4) Metal storage containers shall not contain advertising, logos, or signage for the business, or other text that calls attention to the container.
(5) Metal storage containers shall not be placed in any required parking spaces or drive aisles, and shall maintain a clear travel area for fire department and emergency access at all times. (6) A MSC shall not be placed in any location that interferes with the on-site drainage system, circulation, safety, or the operations of the uses on the site.
(7) A MSC shall not obstruct access to any building or block the visibility triangle of any roadway or driveway approach.
(8) In no case shall the container be placed within 25 feet of the front property line or visible from the primary street frontage. Where the property line of the business abuts a residential zone, the container must be setback a minimum of ten feet at the adjoining property line and screened from view. In all other cases, the setback requirements of the underlying zone shall apply, and no container shall be placed in the required front or side yard setback, or required landscape area. (9) A site shall be limited to one metal storage container unless unique conditions are demonstrated to the satisfaction of the director at the time of permit.
(10) If hazardous materials or chemicals are proposed to be stored in the container, a separate approval is required by the fire department. A list of any hazardous materials pursuant to fire and building codes shall be posted on the container at all times.
(11) The container is prohibited from being used for any human or animal habitation. (12) Containers are allowed to have electrical connections for the purpose of providing interior lighting and/or refrigeration to the storage unit.
(13) Other conditions to mitigate potential land use impacts and public safety concerns may be required at the time of permit issuance on a case-by-case basis.
(h)Determination of hardship.
(1) Businesses that cannot meet all the established standards in subsection (g), but can meet the findings for hardship can request a "hardship determination" by the community development director as part of MSCP application review. The hardship determination is intended to assist businesses in existing buildings constructed prior to the effective date of the ordinance, and is generally not intended for new development.
(2) To be granted a hardship determination for one or more of the standards in subsection (g), the following findings must be demonstrated by the applicant and approved by the director:
a. There are unique physical circumstances applicable to the subject land, including size, shape, topography, location or surroundings; and
b. The strict application of the provisions of this section deprives the property of the right to use the land in a manner enjoyed by other conforming property in the vicinity; and

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Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

3. The approval of a hardship determination does not constitute a grant of special privileges which other conforming properties in the vicinity do not enjoy. (i)Denial of a metal storage container permit. The director may deny issuance of a metal storage permit for one or more of the following reasons:
(1) The placement and use of the metal storage container is incompatible with or would adversely affect adjacent uses, buildings, or the natural environment.
(2) The placement and use of the metal storage container would jeopardize, endanger, or otherwise hinder the public convenience, health, safety, or general welfare. (3) The proposed site is inadequate in size or shape to accommodate the metal storage container. (4) Provisions for vehicular access and circulation, off-street parking, pedestrian safety, and/or operational considerations are inadequate to accommodate the metal storage container. (5) The proposed storage container does not meet the required standards in subsection (g) and has otherwise not been granted a hardship determination.
(j)Appeals. Any decision of the director may be appealed by an interested party to the planning commission as prescribed in section 90-43.6. of the Municipal Code.
(Ord. No. 1909 , § 1(Exh. A), 1-12-16)
Sec. 90-83 82. Detention facility.
(a)Definitions.

Community detention facility for unaccompanied minors. A facility operated by a private or nongovernmental person or entity to house unaccompanied, undocumented minors in the custody of the federal, state, or county government.

Private detention center. A facility operated by a private or nongovernmental person or entity where persons are incarcerated or otherwise involuntarily confined for purposes of execution of a punitive sentence imposed by a court, or detention pending a trial, hearing, or other judicial or administrative proceeding, except:
(1) A private detention center shall not include any facility described in Penal Code § 9502. (2) However, a private detention center shall include a facility described in Penal Code § 9502(d), if that facility is used to house persons in the custody of the federal, state, or county government. (b)Prohibition. Private detention centers and community detention facilities for unaccompanied minors are prohibited in all zoning districts of the city.
(Ord. No. 1969(2020-008), § 1, 5-12-20; Ord. No. 1972, § 2, 2-9-21) Secs. 90-84 83—90-89. Reserved.

Sec. 90-90. Alcohol sales.
(a)Purpose. The purpose of this section is to establish standards for businesses engaged in the sale of alcoholic beverages to protect the health, safety, and general welfare of the residents of the city. This section

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Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

regulates businesses engaged in the sale of alcoholic beverages to ensure compatibility of such uses with surrounding uses and properties and to avoid impacts associated with such uses. (b)Definitions.

ABC or California Department of Alcoholic Beverage Control means the department of the State of California empowered to act pursuant to article 20, section 22, of the California Constitution and authorized to administer the provisions of the Alcoholic Beverages Control Act.

Alcoholic beverage means alcohol, spirits, wine, beer, liquor, and any solid or liquid containing alcohol, spirits, wine, or beer, that contains one-half of one percent or more of alcohol by volume and that is fit for beverage purposes either alone or when diluted, mixed or combined with other substances, the sale of which requires an ABC license.

Director means the community development director.

Off-sale means the sale of alcoholic beverages for off-site consumption.

On-sale means the sale of alcoholic beverages for consumption on-site.

PCN determination means a determination made upon ABC request that the public convenience or necessity would or would not be served by the issuance of a proposed ABC license. (c)Permit required. Except as provided in subsection (e) of this section, any use that proposes to engage in the on-sale or off-sale of alcoholic beverages must first obtain a conditional use permit as provided in this section. In addition, a conditional use permit or modification to an existing conditional use permit shall be required for the following:
(1) Any change in the type of an existing ABC license (e.g., an upgrade from beer and wine to sale of spirits, etc.), including changes in hours of operation or addition of live entertainment. (2) A premises-to-premises transfer of an existing ABC license. (3) Any ABC licensed establishment that has its license revoked, suspended, or surrenders its license to ABC or discontinues use of the license for 30 days or has its conditional use permit revoked or vacates the property shall obtain a new conditional use permit before reestablishing the use. (d)Conflicting provisions. In the event that the type of permit required for a proposed use under this section differs from the type of permit required by any other provision of this chapter, the more restrictive permit requirement shall apply.
(e)Exemptions.
(1) The following uses are not subject to the permit requirement in subsection (c) of this section:
a. Restaurants that have been licensed by ABC as a bona fide eating place and are in compliance with the terms and conditions of their license.
b. Grocery stores with at least 25,000 square feet of floor area that devote less than five percent of their floor area to the off-sale of alcoholic beverages. c. Florist and gift shops that include the incidental sale of wine with gift baskets or floral arrangements.
d. Retail or wholesale stores with at least 30,000 square feet of floor area that devote less than five percent of their floor area to the off-sale of alcoholic beverages. e. Temporary uses that have obtained a special event permit from the city pursuant to section 90-

73.

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Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

(2) Nothing in this subsection (e) shall be construed as exempting any use from any other permit requirement established in any other section of this Code. (3) This section does not apply to any activity that is not required to be licensed under the California Alcoholic Beverage Control Act.
(f)Findings. In addition to the findings applicable to conditional use permits under section 90-42 et seq., the decision-making body shall make the following supplemental findings before approving a conditional use permit for a use that engages in the on-sale or off-sale of alcoholic beverages:
(1) The use complies with all of the following separation requirements. Notwithstanding the foregoing, the decision-making body may issue a conditional use permit to a use that does not comply with one or more of the following separation standards if it finds that unique circumstances exist that justify noncompliance with the separation standards:
a. The use is located at least 600 feet, as measured from property line to property line, from any existing public or private schools (K through 12), public parks, or places of worship; b. The use is located at least 100 feet, as measured from property line to property line, from existing residential uses or land that is zoned for residential uses. c. The use is located at least 1,000 feet, as measured from property line to property line, from existing parolee-probationer homes, emergency shelters, supportive housing, or transitional housing.
(2) The use is fully visible from a public street with an unobstructed view from the public street for public safety.
(3) The proposed use will not be detrimental to surrounding properties and neighborhoods, including ensuring that the use does not contribute to loitering, public drunkenness, noise, obstructing pedestrian and vehicular traffic, parking, crime, interference with pedestrian corridors used by children, defacement and damage to structures.
(4) The proposed use will not adversely impact the suitability of adjacent commercially zoned properties for commercial uses.
(g)Standards. The following standards shall apply to all uses engaging in the on-sale or off-sale of alcoholic beverages, including without limitation uses in existence prior to the effective date of the ordinance from which this section derives and uses that are listed in subsection (e)(1) as exempt from the conditional use permit requirement:
(1)Public consumption. If the use engages in the off-sale of alcohol but not the on-sale of alcohol, the owner or operator shall post a sign to indicate that it is unlawful for a person to consume alcoholic beverages in a public place or where posted.
(2)Open containers. The possession of alcoholic beverages in open containers and the consumption of alcoholic beverages are prohibited on or around the premises. (3)Loitering. Loitering is prohibited on or around the premises of any use engaging in the dispensing or sale of alcoholic beverages, and it shall be the responsibility of the owner of any such establishment to post "No Loitering" signs and actively enforce measures that preclude loitering. (4)Lighting. The use shall maintain lighting to provide illumination for the security and safety of parking and access areas. The lighting shall be provided at a level of no less than one foot-candle throughout in parking lots and access areas.
(5)Security/surveillance. Surveillance cameras and equipment shall be installed to record all purchases and attempted purchases of alcoholic beverages in accordance with the specifications provided by the

12.A

Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

police department. The equipment shall be able to record a minimum of 24 hours of operation. The facility operator shall maintain the recordings for the prior 60 days. (6)Graffiti. The owner or operator of the use shall remove or paint over any graffiti within 48 hours of the graffiti being painted or marked upon the premises.
(7)Displays and signs. There shall be no interior displays of alcoholic beverages or signs which are clearly visible to the exterior. There shall be no exterior advertising or sign of any kind promoting or indicating the availability of alcoholic beverages. No more than 25 percent of the square footage of each window and glass-paneled door shall bear advertising or signs of any sort, and all advertising and signage shall be placed in a manner that ensures that law enforcement personnel have a clear and unobstructed view of the interior of the premises.
(8)Litter. The owner or operator of the use shall remove litter from the premises daily, and shall keep the premises swept to prevent debris build up. Trash bins in approved enclosures shall be provided. (9)ABC training. The owner or operator of the use shall provide ABC approved or certified training for all employees who sell or serve alcoholic beverages within 30 days of opening for business, and all new employees thereafter shall be trained within 30 days of the date of their employment. (10)Additional conditions. In approving a conditional use permit to establish a use selling alcoholic beverages, the decision making body may impose additional reasonable conditions on the use to ensure that it operates in a manner that provides adequate protection of the public health, safety, and general welfare.
(h)Public convenience or necessity.
(1) When ABC requests that the city make a determination whether the public convenience or necessity (PCN) would be served by the issuance of a proposed ABC license, the provisions of this subsection (h) shall govern.
(2) A PCN determination shall be made by the planning commission if the proposed use would require a conditional use permit under this section. If ABC requests a PCN determination for a use that is exempt from the permit requirement of this section, the director shall make the PCN determination. The director or the planning commission may consult with the chief of police in making its determination. A noticed public hearing is not required for a PCN determination. (3) A PCN determination shall be based on the following findings:
a. The public convenience would be served by the establishment of the proposed use. b. The proposed use is not anticipated to be a source of nuisance behavior associated with the excessive consumption of alcoholic beverages, or the exposure of alcoholic beverages to minors. c. The proposed use would not be detrimental to the public health, safety or welfare. d. The proposed use would not increase the severity of existing law enforcement or public nuisance problems in the surrounding area.
e. The proposed use is consistent with the objectives, policies, general land uses, and programs of the general plan and any applicable specific plan, this section and any applicable zoning regulations contained in this chapter.
(Ord. No. 1858, § 1(Exh. A), 1-22-13)
Section 90-91. Tobacco Sales

12.A

Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

A.Purpose. The purpose of this section is to establish standards for businesses engaged in the sale of tobacco products to protect the health, safety, and general welfare of the residents of the city. This section regulates businesses engaged in the sale of tobacco products to ensure compatibility of such uses with surrounding uses and properties and to avoid impacts associated with such uses.

B.Definitions. For purposes of this chapter, the following words, terms and phrases shall have the meanings given below:

1. "Arm’s length transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violation of this chapter is not an arm’s length transaction.

2. "Consumer" means any person who purchases a tobacco product for consumption and not for sale to another.

3. "Drug paraphernalia" shall have the definition set forth in California Health and Safety Code Section 11014.5, as that section may be amended from time to time.

4. “Head shop” means a retail outlet that receives 50 percent or more of its gross revenues from the sale of drug paraphernalia or occupies 50 percent or more of the net floor area of the store for the sale or display of synthetic cannabinoid compounds or derivatives as defined in Health and Safety Code § 11357.5, psychoactive bath salts, and/or any other similar psychoactive substances labeled as not safe for human consumption.

5. "Person" means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.

6. "Proprietor" as used in this chapter shall mean a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent (10%) or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have or share ultimate control over the day-to-day operations of a business.

7. "Sale" or "sell" means any transfer, exchange, barter, gift, offer for sale, or distribution for commercial purpose, in any manner or by any means whatsoever.

8. "Self-service display" means the open display or storage of tobacco products or tobacco paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the retailer or employee of the retailer and a direct person-to-person transfer between the purchaser and the retailer or employee of the retailer. Vending machines, racks, counter-tops or shelves are forms of a self-service display.

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Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

9. “Smoking lounge” means a business establishment that is dedicated, in whole or in part, to the inhalation of tobacco products including, but not limited to, establishments known variously as cigar lounges, hookah lounges, tobacco clubs, private smoker's lounges or tobacco bars.

10. "Tobacco paraphernalia" means any item designed or marketed for the consumption, use or preparation of tobacco products.

11. "Tobacco product" means:
a. Any product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to, cigarettes, cigars, little cigars, chewing tobacco, pipe tobacco, snuff; b. Any electronic device that delivers nicotine or other substances to the person inhaling from the device, including, but not limited to, an electronic cigarette, electronic cigar, electronic pipe, or electronic hookah.
c. Notwithstanding any provision of subsections a) and b) of this definition to the contrary, "tobacco product" includes any component, part, or accessory intended or reasonably expected to be used with a tobacco product, whether or not sold separately. "Tobacco product" does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act.

12. "Tobacco retailer" means any person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco, tobacco products, or tobacco paraphernalia.

13. "Tobacco retailing" shall mean selling, offering for sale, offering to exchange or exchanging for any form of consideration tobacco, tobacco products, or tobacco paraphernalia. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange.

C. Requirements and Prohibitions.

1. Head shops and smoking lounges prohibited. It is unlawful for any person to cause or permit the creation of, or operate, a head shop or smoking lounge. The operation of a head shop or smoking lounge shall constitute a public nuisance subject to abatement under this Code.

2. Permit Required. It shall be unlawful for any person to act as a tobacco retailer in the City without first obtaining and maintaining a conditional use permit for each location at which that activity is to occur. Tobacco retailing without a valid conditional use permit is a nuisance as a matter of law.

3. Lawful Business Operation. In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a conditional use permit is issued, it shall be a violation of this section for a permitee, or any of the permitee’s agents or employees, to violate any local, State or Federal law applicable to tobacco products, tobacco paraphernalia, or tobacco retailing.

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4. Display of Permit. Each conditional use permit for a tobacco retailer shall be prominently displayed in a publicly visible location at the conditional use permitted location.

5. Positive Identification Required. No person engaged in tobacco retailing shall sell or transfer a tobacco product or tobacco paraphernalia to another person who appears to be under the age of twenty-seven (27) years without first examining the identification of the recipient to confirm that the recipient is at least the minimum age for sale of tobacco products as established by State law.

6. Minimum Age for Persons Selling Tobacco. No person who is younger than eighteen (18) years of age shall engage in tobacco retailing.

7. False and Misleading Advertising Prohibited. A tobacco retailer without a valid conditional use permit, or a proprietor without a valid conditional use permit including, for example, a person whose permit has been revoked:
a. Shall keep all tobacco products and tobacco paraphernalia out of public view. The public display of tobacco products or tobacco paraphernalia in violation of this provision shall constitute tobacco retailing without a permit under this section. b. Shall not display any advertisement relating to tobacco products or tobacco paraphernalia that promotes the sale or distribution of such products from the tobacco retailer’s location or that could lead a reasonable consumer to believe that such products can be obtained at that location.

8. Drug Paraphernalia. It shall be a violation of this chapter for any permitee or any of the permitee’s agents or employees to violate any local, State or Federal law regulating controlled substances or drug paraphernalia, such as California Health and Safety Code Section 11364.7.

9. Sale of Tobacco Products by Self-Service Display Prohibited. It is unlawful for any person to display tobacco products or tobacco paraphernalia by means of a self-service display or to engage in tobacco retailing by means of a self-service display.

D. Exemptions. The following uses are not subject to the permit requirement of this section:

1. Grocery stores with at least 25,000 square feet of floor area that devote less than one percent of their floor area to the sale of tobacco products.

2. Retail or wholesale stores with at least 30,000 square feet of floor area that devote less than one percent of their floor area to the sale of tobacco products.

3. Nothing in this subsection shall be construed as exempting any use from any other permit requirement established in any other section of this Code.

E. Findings. In addition to the findings applicable to conditional use permits under section 90-42 et seq., the decision-making body shall make the following supplemental findings before approving a conditional use permit for a use that engages in the sale of tobacco products:

1. The use complies with all of the following separation requirements. Notwithstanding the foregoing, the decision-making body may issue a conditional use permit to a use that does not

12.A

Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

comply with one or more of the following separation standards if it finds that unique circumstances exist that justify noncompliance with the separation standards:
a. The use is located at least 1,000 feet from any existing public or private schools (K through 12), public parks, or places of worship;
b. The use is located at least 1,000 feet from existing residential uses or land that is zoned for residential uses.
c. The use is located at least 1,000 feet from existing parolee-probationer homes, emergency shelters, supportive housing, or transitional housing. d. The use is located at least 1,000 feet from any other tobacco store or retail establishment that typically offers tobacco or tobacco related products. e. The use is located at least 1,000 feet from any public or private school where minors are present.
f. The use is located at least 1,000 feet from any child care center (as defined in section 90-311), park (as defined in section 90-311), library, commercial establishment that has an on-site children’s playground, or place where classes or group activities for children are held.
g. The use is fully visible from a public street with an unobstructed view from the public street for public safety.
h. The proposed use will not be detrimental to surrounding properties and neighborhoods, including ensuring that the use does not contribute to loitering, noise, obstructing pedestrian and vehicular traffic, parking, crime, interference with pedestrian corridors used by children, defacement and damage to structures. i. The proposed use will not adversely impact the suitability of adjacent commercially zoned properties for commercial uses.

F. Standards. The following standards shall apply to all uses engaging in the sale of tobacco products, including without limitation uses in existence prior to the effective date of the ordinance from which this section derives and uses that are listed as exempt from the conditional use permit requirement:

1. Public consumption. The owner or operator shall post a sign to indicate that it is unlawful for a person to consume tobacco products on the premises where tobacco products are sold.

2. Loitering. Loitering is prohibited on or around the premises of any use engaging in the dispensing or sale of tobacco products, and it shall be the responsibility of the owner of any such establishment to post "No Loitering" signs and actively enforce measures that preclude loitering.

3. Lighting. The use shall maintain lighting to provide illumination for the security and safety of parking and access areas. The lighting shall be provided at a level of no less than one foot-candle throughout in parking lots and access areas.

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Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

4. Security/surveillance. Surveillance cameras and equipment shall be installed to record all purchases and attempted purchases of tobacco products in accordance with the specifications provided by the police department. The equipment shall be able to record a minimum of 24 hours of operation. The facility operator shall maintain the recordings for the prior 60 days.

5. Graffiti. The owner or operator of the use shall remove or paint over any graffiti within 48 hours of the graffiti being painted or marked upon the premises.

6. Displays and signs. There shall be no interior displays of tobacco products or signs which are clearly visible to the exterior. There shall be no exterior advertising or sign of any kind promoting or indicating the availability of tobacco products. No more than 25 percent of the square footage of each window and glass-paneled door shall bear advertising or signs of any sort, and all advertising and signage shall be placed in a manner that ensures that law enforcement personnel have a clear and unobstructed view of the interior of the premises.

7. Litter. The owner or operator of the use shall remove litter from the premises daily, and shall keep the premises swept to prevent debris build up. Trash bins in approved enclosures shall be provided.

8. Additional conditions. In approving a conditional use permit to establish a use selling tobacco products, the decision making body may impose additional reasonable conditions on the use to ensure that it operates in a manner that provides adequate protection of the public health, safety, and general welfare.

G. Existing Tobacco Retailers. A tobacco retailer operating lawfully on the date the ordinance codified in this section is adopted shall be subject to Section 90-61 related to Deemed Approved Tobacco businesses.

Secs. 90-91 92—90-99. Reserved.

Sec. 90-100. Homemade food operator permit.
(a)Purpose. Pursuant to Government Code § 51035(a), the city must allow cottage food operations in residential dwellings, but can impose reasonable standards on cottage food operations to minimize potential effects on surrounding residences. The purpose of this section is to establish reasonable standards for cottage food operations as allowed by state law.
(b)Definitions. The following definitions shall apply unless subsequently amended under the Health and Safety Code of the State of California
Cottage food operation or homemade food operation means an enterprise that is operated by a cottage food operator, and has not more than one full-time equivalent cottage food employee, not including a family member or household member of the cottage food operator, within the registered or permitted area of a private home where the cottage food operator resides and where cottage food products are prepared or packaged for direct, indirect, or direct and indirect sale to consumers. A cottage food operation includes both of the following:
(a)Class A or direct sales cottage food operation is a cottage food operation that may engage only in direct sales of cottage food products from the cottage food operation or other direct sales venues described in Health and Safety Code § 113758(b)(4).

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(b)Class B or indirect sales cottage food operation means a cottage food operation that may engage in both direct sales and indirect sales of cottage food products from the cottage food operation, from direct sales venues described in paragraph (4) of subdivision (b), from offsite events, or from a third- party retail food facility described in Health and Safety Code § 113758(b)(5).

Cottage food operator or homemade food operator means an individual who operates a cottage food operation in his or her private home and is the owner of the cottage food operation.

Cottage food product or homemade food product means non-perishable foods not requiring refrigeration, including foods that are identified by the Health Department as cottage foods, and that are prepared for sale in the kitchen of a cottage food operation.

Health department means the Riverside County Department of Environmental Health.

Private home means a dwelling, including an apartment or other leased space, where individuals reside.

Registered or permitted area means the portion of a private home that contains the private home's kitchen used for the preparation, packaging, storage, or handling of cottage food products and related ingredients or equipment, or both, and attached rooms within the home that are used exclusively for storage. (c)Permit and business license required. An individual may conduct a homemade food operation in a private home provided he/she obtains a business license in conformance with chapter 18 of the Hemet Municipal Code and a homemade food operator permit from the director. If a business license for a homemade food operator is not renewed, the homemade food operator permit shall automatically expire with the business license. A fee for the processing of a homemade food operator permit may be established from time to time by resolution of the city council.
(d)Application for permit. Applications for homemade food operator permits must be submitted to the director on a form prescribed by the city. The application shall include the following information and documentation:
(1) The name, address, telephone number, and e-mail address of the proposed homemade food operator and description of the property on which the homemade food operation is to be located, including the registered or permitted area of the homemade food operation. The proposed homemade food operator must reside at the site of the homemade food operation. (2) A statement of whether the proposed homemade food operator owns the property on which the homemade food operation is to be located or is a tenant or lessee at the property. If the proposed homemade food operator is not an owner of the property, the application must include the property owner's written consent to the application and the proposed homemade food operation. (3) A description of the homemade food products to be produced by the proposed homemade food operation, all of which must be consistent with the list of approved cottage food products posted on the health department website which may be amended from time to time. (4) A statement of whether the proposed homemade food operation will involve direct sales and/or indirect sales, as those terms are defined by this chapter, and whether there will be direct sales to customers at the site of the proposed homemade food operation. (e)Issuance of permit. Upon receipt of a completed homemade food operator permit application, applicable fee, and confirmation that the application contains truthful information and the applicant has or will comply with the requirements of this section, the director shall issue a homemade food operator permit subject to the standards and conditions set forth in subsection (i) of this section. The applicant must agree in writing to comply with such standards and conditions. The homemade food operator permit is non-transferable and shall be valid for one year upon issuance. In order to renew a homemade food operator permit, a homemade food operator must submit a completed application on a city-approved form to the director. The renewal application must be submitted no later than 30 days prior to the expiration date of the existing homemade food operator permit.

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(f)Coordination with health department. Upon approval of a city-issued homemade food operator permit, the city shall provide a copy of the homemade food operator permit to the health department via United States Postal Service first class mail, facsimile, email, or other method prescribed by the health department within 14 days of the issuance of the permit.
(g)Annual renewal fee required. An annual fee for the renewal of a homemade food operator permit shall be established by resolution of the city council. The purpose of the renewal fee is to recover the cost of staff time to confirm the applicant's compliance with permitting and licensing requirements of the health department and to determine whether or not the operator remains in compliance with city standards for the zone in which the homemade food operation is located.
(h)Limitations on homemade food operation permit. A maximum of one homemade food operation permit shall be deemed active and approved at any time for each private home. If more than one permit has been issued for the same private home, only the most recently approved application shall be deemed to be active. All other prior applications shall be deemed void. Such limitation shall not preclude a resident from also obtaining a home occupation permit pursuant to section 90-72, for a non-food-related home-based business. (i)Conditions. The following conditions shall be observed at all times by the holder of a homemade food operator permit:
(1) A homemade food operation shall comply with all permitting and licensing requirements of the health department and shall obtain certification from the health department prior to, or within 14 days of, the issuance of a homemade food operator permit.
(2) Signs or advertising shall not be displayed on the premises except for signage permitted under section 90-1250(2).
(3) The homemade food operation shall not have more than one full-time equivalent employee, not including a family member or household member of the homemade food operator, within the registered or permitted area of a private home where the homemade food operator resides and where homemade food products are prepared and packaged.
(4) The homemade food operation, including the storage of inventory, supplies, and equipment, shall be conducted wholly within the registered or permitted area of a private home. (5) Displays or sales activity of any kind shall not be visible from the exterior of the premises. (6) On-site direct sales of homemade food products are permissible only between the hours of 8:00 a.m. and 6:00 p.m., Monday through Sunday. There cannot be more than two homemade food product customers on the premises of a homemade food operation at any single time. All sales shall be conducted indoors.
(7) Homemade food operators may load cottage food products into a vehicle outside of an enclosed garage only between the hours of 8:00 a.m. and 6:00 p.m., Monday through Sunday. Vehicles shall not idle while being loaded with homemade food products.
(8) A maximum of one vehicle not larger than 10,000 pounds gross vehicle weight rating, used in conjunction with a homemade food operation, shall be parked on the driveway or in a garage space of the homemade food operation site. No commercial vehicle owned, leased, or otherwise operated for the specific use of the homemade food operator shall be parked in the street. (9) A homemade food operation shall comply with all applicable noise regulations for the zone in which it is located.
(j)Grounds for revocation of permit. Any homemade food operator permit may be revoked by the director upon violation of any requirements of this chapter, upon notification by the health department that the Class A or the Class B permit has been revoked, or upon failure to comply with any of the conditions or limitations of

12.A

Created: 2022-07-21 11:23:23 [EST]
(Supp. No. 65, Update 2)

the permit, unless such violation is corrected within three days of the giving of written notice thereof. A permit may be revoked for repeated violation of the requirements of this chapter, notwithstanding further notice.
(k)Appeal revocation of permit. A decision of the director may be appealed to the planning commission as prescribed in section 90-43.6.
(i)Enforcement. Every person who violates any provision of this section shall be guilty of a misdemeanor and shall be subject to the penalties as set forth in section 1-8. Each day that such violation exists shall be deemed a new and separate offense. Neither the arrest, prosecution, conviction, imprisonment, or payment of any fine for the violation of this section shall satisfy or diminish the authority of the city to institute administrative or civil actions seeking enforcement of any or all of the provisions of this section. (Ord. No. 1861, § 1(Exh. A), 4-23-13)

12.A

Planning Commission Resolution No. PC2022-
Nonconforming Ordinance including Deemed Approved and Special Uses and Conditions (ZOA 22-001)

1 2
3 4CITY OF HEMET
5Hemet, California
6 7PLANNING COMMISSION
8RESOLUTION NO. PC 2022-
9A RESOLUTION OF THE PLANNING COMMISSION OF
10THE CITY OF HEMET, CALIFORNIA, RECOMMENDING
11THAT THE CITY COUNCIL ADOPT AN ORDINANCE TO
12AMEND VARIOUS SECTION OF CHAPTER 90 (ZONING)
13OF THE MUNICIPAL CODE INCLUDING DIVISION 2
14NONCONFORMITIES OF ARTICLE II ADMINISTRATIVE
15REGULATIONS AND ARTICLE III SPECIAL USES AND
16CONDITIONS OF CHAPTER 90 (ZONING) OF THE
17HEMET MUNICIPAL CODE (ZOA 22-001).
18 19WHEREAS, pursuant to Government Code sections 65854 and 65855, the 20Planning Commission has the authority to review and make recommendations to the 21City Council regarding amendments to the City’s zoning ordinance; and 22 23WHEREAS, on November 4, 2022 the City gave public notice by publishing 24notice in the Press Enterprise newspaper of the holding of a public hearing regarding 25consideration of Zoning Ordinance Amendment 22-001, an amendment to the City’s 26zoning ordinance; and
27 28WHEREAS, on November 15, 2022, the Planning Commission held the noticed 29public hearing at which interested persons had an opportunity to testify in support of, or 30opposition to, the proposed amendment to the City’s zoning ordinance and which the 31Planning Commission considered the proposed amendment to the City’s zoning 32ordinance and continued to January 17, 2023; and
33 34WHEREAS, on January 17, 2023, the Planning Commission was presented with 35a draft of this Ordinance and, after conducting a duly noticed public hearing, voted to 36continue the item to the February 7, 2023 meeting to allow staff to prepare additional 37criteria for repair or replacement of nonconforming fencing or wall located in the right-of- 38way; and
39 40WHEREAS, on February 7, 2023, the Planning Commission was presented with 41a draft of this Ordinance and, after conducting a duly noticed public hearing, voted to 42recommend that the City Council approve Ordinance; and 43 44

12.A

Planning Commission Resolution No. PC2022-
Nonconforming Ordinance including Deemed Approved and Special Uses and Conditions (ZOA 22-001)

1WHEREAS, the City has analyzed this proposed project and has determined that 2it is exempt from the California Environmental Quality Act (“CEQA”) under section 315061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is 4no possibility that the activity in question may have a significant effect of the 5environment; and
6 7WHEREAS, attached as Exhibit “A” is the proposed Ordinance; and 8 9NOW, THEREFORE, the Planning Commission of the City of Hemet does 10Resolve, Determine, Find and Order as follows:
11 12SECTION 1: ENVIRONMENTAL FINDINGS
13 14The Planning Commission, in light of the whole record before it, including but not limited 15to, the City’s Local CEQA Guidelines and Thresholds of Significance, the direction of 16the Planning Commission at its meeting on November 15, 2022 and documents 17incorporated therein by reference, and any other evidence (within the meaning of Public 18Resources Code Sections 21080(e) and 21082.2) within the record or provided at the 19public hearing of this matter, hereby finds and determines as follows:
201. CEQA: The City has analyzed this proposed project and has determined that it is 21exempt from the California Environmental Quality Act (CEQA) under section 2215061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to 23projects that have the potential for causing a significant effect on the 24environment. ZOA 22-001 in itself does not relate to any physical project and will 25not result in any physical change to the environment and does not affect the land 26use or density limitations of the General Plan. Therefore, it can be seen with 27certainty that there is no possibility that this Ordinance may have a significant 28adverse effect on the environment, and therefore, the adoption of this Ordinance 29is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. 30 31SECTION 2: ZONING ORDINANCE AMENDMENT FINDINGS
32 33Pursuant to Hemet Municipal Code Section 90-41.5(a), the Planning Commission 34makes the following findings with respect to this zoning ordinance amendment:
35 361.The zoning ordinance amendment is in conformance with the latest adopted 37general plan for the City.
38 39Finding: The proposed text amendment is consistent with the following General 40Plan policy:
41 42LU-6.7 - Regulate Sensitive Land Uses. Appropriately control the location, 43concentration and number of community sensitive land uses such as alcohol 44sales, tobacco products, adult businesses, medical marijuana dispensaries, and 45entertainment venues, and require operational measures to prevent adverse

12.A

Planning Commission Resolution No. PC2022-
Nonconforming Ordinance including Deemed Approved and Special Uses and Conditions (ZOA 22-001)

1impacts to adjoining residences, businesses, schools, parks, medical facilities, 2and religious facilities consistent with City, State and Federal laws. 3 4
5LU-15-05 - Unhealthy Development Patterns. Create, update, and enforce 6regulations and laws pertaining to the location, retailing, and use of unhealthy 7substances such as tobacco, marijuana and other drugs, and alcohol. 8 9LU-3.9 - Incompatible Uses. Prohibit uses that lead to the deterioration of the 10residential neighborhoods, or adversely affect its safety or residential character. 11 12LU6.3 Community Growth Policy: Encourage the establishment of retail and 13other support and entertainment uses that provide a boarder selection of high- 14quality goods and services for residents, workers, and tourist to enjoy, and to 15minimize sales leakages to other communities.
16 17
182. The zoning ordinance amendment will protect the public health, safety and 19welfare.
20 21Finding: The City of Hemet has experienced extreme single-family residential 22development growth in the past 24 months. With such development, the new 23residents need certain services. The purpose of the zoning code amendment is 24to mitigate the existing established businesses to continue operation without the 25process of establishing a new Conditional Use Permit to continue their business 26during an ownership change. This Amendment allows the businesses to 27continue and apply the latest adopted conditions to protect the public health, 28safety, and welfare. Therefore, the zoning ordinance amendment will protect the 29public health, safety and welfare.
30 31SECTION 3: PLANNING COMMISSION ACTIONS
32 33The Planning Commission hereby takes the following action:
34 35The Planning Commission approves Resolution recommending that the City 36Council adopt the proposed Ordinance which is attached hereto and incorporated 37herein by reference as Exhibit “A.”
38 39PASSED, APPROVED AND ADOPTED this 7 th day of February, 2023 by the 40following vote:
41 42
43 44
45 46
47

12.A

Planning Commission Resolution No. PC2022-
Nonconforming Ordinance including Deemed Approved and Special Uses and Conditions (ZOA 22-001)

1 2
3AYES:
4NOES:
5ABSTAIN:
6ABSENT:
7 8__________________________
9Cyndi Lemke, Chair
10Hemet Planning Commission
11 12ATTEST:
13 14
15________________________________
16Corina Hernandez, Records Secretary
17Hemet Planning Commission

12.A

Hemet City Council
Zoning Ordinance Amendment 22-001
Deemed Approved Ordinance

12.A

Strategic Plan Integration
Restoring Our
Community Strategy
(ROCS)
Ordinance 1858

12.A

Strategic Plan Integration

12.A

PURPOSE
A. Alcohol & Tobacco Retailers
• Nuisance Problems
• Graffiti, Litter, Unruly Behavior, Noise, Safety & Security • Administrative Mechanism for existing Alcohol & Tobacco Retailers to Maintain Approved Status.
• Performance Standards
B. Nonconforming Lots, Land Uses, and Structures
• Administrative Mechanism to bring Existing Structures, Lots, Land Uses and Improvements into conformance with today’s Development Code and the Vision, Goals and Policies of the General Plan.

12.A

90-57 Nonconforming Lot
• A lot that is not in compliance with the development standards • Lot Area, Dimension, Configuration
• Lawfully Created
• Deemed “Legal Nonconforming”

12.A

90-58 Nonconforming Use
• A use that lawfully occupied a building or land at the time an ordinance was codified and does not conform to the use regulation of the zoning district in which it is located
• Deemed “Legal Nonconforming”
• Cannot be expanded or intensified
• Loss of Nonconforming Status if Abandoned for Any Reason • Discontinued for a period of 180 consecutive days.

12.A

90-58 B-G
• B Change in Ownership Tenancy and Management
• C New Development
• D Alterations and Expansion of Use (Not Permitted)
• E Intensification of Use (Not Permitted)
• F Replacement of Nonconforming Use with Another Use (CD Director Review Required)
• G Abatement of Nonconforming Use (Cease and Desist Order)

12.A

90-59 Structures & Improvements
• A Damage or Destruction of a Legal Nonconforming Structure ❑ Reconstruction cannot exceed 50% of Fair Market Value ❑ If exceeds 50% of Fair Market Value –Planning Commission considered required subject to CUP Findings
• B Reconstruction of Nonconforming Multi-Family Structure ❑ Reconstruction of Nonconforming Multi-Family is permitted pursuant to GC 65852.25 but not if in Industrial Zoning District
❑Multi-Family Reconstruction –Permit Issuance within 2 Years ❑Shall Comply with Current Building Codes

12.A

90-59 Continued
• C Alterations of Expansions to Legal Nonconforming
Structures
❑ Structure shall not be moved, altered or enlarged
❑ No structural alterations that would prolong life.
❑ Reasonable repairs immediately to protect the public and safety as determined by the Building Official (BO)
❑ Total Cost Cannot exceed 50% of Replacement Cost (Determined by BO)
❑No Cost Limit when retrofitting unreinforced masonry for earthquake safety standards.

12.A

90-59 Continued
• D Alterations of Expansions to Legal Nonconforming
Structures
❑ Interior (non-structural) modifications to legal nonconforming structures permitted.
❑Cannot exceed full replacement cost over 5-year period. (Cost Determined by CD Director)
• E. New Structures
❑Shall comply with today’s standards
❑New non-residential structure cannot be built on lot with existing legal nonconforming residential structure.

12.A

90-59 Continued
• F Abatement of Nonconforming Structure
• G. Conversion of Nonconforming Residential Structure in Industrial Zoning District
• H Alteration or Expansion of Nonconforming SFR in Non-Residential Zone
- 25% Addition
- R1-10 Standards
- Garage improvements does not count towards Addition floor area. - Side setback may align with existing (no greater than 14’ tall structure) - Parking may be required
- Fence & Walls may be replaced if legal nonconforming

12.A

90-59 Continued
• I. Alterations and/or Expansion of Nonconforming Multi-Family Residential Development
-Requires Planning Commission Approval of a CUP with Findings -Maximum of 25% Addition
• J Alteration or Expansion of Nonconforming Residential Structure
-Requires Planning Commission Approval of a CUP with Findings -Maximum 25% Expansion Area

12.A

90-59 Continued
• I. Alterations and/or Expansion of Nonconforming Multi-Family Residential Development
-Requires Planning Commission Approval of a CUP with Findings -25% Increase in Density.
• J Alteration or Expansion of Nonconforming Residential Structure -Requires Planning Commission Approval of a CUP with Findings -Maximum 25% Expansion Area
- Adequate Parking shall be provided –cannot displace existing parking.

12.A

90-59 Continued
• K. Nonconforming Improvements
- Nonconforming improvements shall be brought up to current development standards as a condition of discretionary land use or entitlement approval.
- Landscaping
- Parking
- Screening
- Trash Enclosures
- Security Fencing

12.A

90-60 Alcohol Use Nuisance Regulations
• A. Findings
• B. Purpose
• C. Automatic Deemed Approved
-All businesses lawfully operating prior to the effective date of this ordinance are deemed approved.
-Moving forward, shall comply with Performance Standards 90-90(g) -Notice will be provided-subject to administrative procedures. • E. Previously Non-Conforming Alcohol Uses
• F. Abandonment
- Clarifies what a substantial change is not.

12.A

90-60 Alcohol Use Nuisance Regulations
• G. Notification to Owners of Deemed Approved Alcohol Uses • Program Rollout: Within 6 months of enactment of legislation. -Development of Education and Outreach Program
-Distribution of Informational Packets
-Posters
-Brochures
-Educational Sessions for Operators of Deemed Approved Alcohol Uses. -Operators who do not attend every 2 years will receive a visit from Community Development in coordination with the Police Department.

12.A

90-60 Alcohol Use Nuisance Regulations
• I. Violation of Performance Standards
-Public Consumption
-Open Containers
-Loitering
-Lighting
-Security/Surveillance
-Graffiti
-Display/Signage
-Litter
-ABC training
-Other Conditions
Alternative Action When in Violation

1. Civil Action/Administrative Hearing
90-60(K) Administrative Procedures.

2. If approved by a CUP-Implement
Procedures outlined in 90-42.11
Suspension & or Revocation

12.A

90-61 Tobacco Use Nuisance Regulations
• A. Findings
• B. Purpose
• C. Automatic Deemed Approved
-All businesses lawfully operating prior to the effective date of this ordinance are deemed approved.
-Moving forward, shall comply with Performance Standards 90-91(f) -Notice will be provided-subject to administrative procedures. • E. Previously Non-Conforming Tobacco Uses
• F. Abandonment
- Clarifies what a substantial change is not.

12.A

90-61 Tobacco Use Nuisance Regulations
• G. Notification to Owners of Deemed Approved Tobacco Uses • Program Rollout: Within 6 months of enactment of legislation. -Development of Education and Outreach Program
-Distribution of Informational Packets
-Posters
-Brochures
-Educational Sessions for Operators of Deemed Approved Tobacco Uses.
-Operators who do not attend every 2 years will receive a visit from Community Development in coordination with the Police Department.

12.A

90-61 Tobacco Use Nuisance Regulations
• I. Violation of Performance Standards 90-91(f)
-Public Consumption
-Open Containers
-Loitering
-Lighting
-Security/Surveillance
-Graffiti
-Display/Signage
-Litter
-ABC Training
-Other Conditions
Alternative Action When in Violation

1. Civil Action/Administrative Hearing
90-61(K) Administrative Procedures.

Efforts to Remedy

2. If approved by a CUP-Implement
Procedures outlined in 90-42.11
Suspension & or Revocation
Efforts to Remedy

12.A

90-80 (Repeal)
• Repeal of Section 90-80 –Tobacco stores, smoking lounges and headshops
• Section 3: Amendment of Article III Special Use and Conditions • Vital criteria contained within Section 90-80 has been merged as necessary into NEW 90-61 for Tobacco Uses
• Removal of duplicative text

12.A

90-91 Tobacco Standards
• A . Purpose
• B. Definitions
• C. Requirements and Prohibitions
-Head Shops and Tobacco Lounges are Prohibited
-New Tobacco Retailing requires a CUP
• D. Exemptions
-CUP not required for grocery stores 25,000 sq. ft. <1% Floor Area for tobacco products.
-Retail or Wholesale Store 30,00 sq. ft. < 1% Floor Area for tobacco products.

12.A

90-91 Tobacco Standards
• E. Findings for New Conditional Use Permit (Tobacco Retailer) -1,000 Foot Radius (schools, parks, churches, residential zoned property, probationary homes, emergency shelters, supportive housing, transitional housing, other tobacco retailers, public or private school where minor are present, child chare centers, playgrounds, classes or group activities.
• F. Performance Standards

12.A

90-91 Tobacco Use Performance Standards
• I. Violation of Performance Standards 90-91(f)
-Public Consumption
-Open Containers
-Loitering
-Lighting
-Security/Surveillance
-Graffiti
-Display/Signage
-Litter
-ABC Training
-Other Conditions

12.A

CEQA
• Add CEQA provisions here
• The City has analyzed this proposed general plan amendment and has determined that it is exempt from the California
Environmental Quality Act (CEQA) under Section 15061 (b) (3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have a potential for causing a significant impact on the environment.
• ZOA 22-001 in itself does not relate to any physical project and will not result in any physical change to the environment and does not affect the land use or density limitations of the General Plan.
• Therefore it can be seen with certainty that there is no possibility that this general plan amendment may have a significant adverse effect on the environment, and therefore is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines

12.A

Discussion & Follow Up

12.A

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 28 2023
Department: Administration
Submitted by: Eddie Pust, Interim City Manager
John Maier, City Clerk;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

Approval of the Regular City Council Meeting Minutes of February 14, 2023

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Approve the Regular City Council Meeting Minutes of February 14, 2023.

STRATEGIC PLAN INTEGRATION:

N/A

ATTACHMENT(S):

City Council Meeting - Feb 14 2023 - Minutes (1)

13.A

MINUTES
City Council Meeting
City of Hemet
City Council Chamber
Tuesday, February 14, 2023

CLOSED SESSION – 5:30 P.M.

1. CALL TO ORDER
The City Council of the City of Hemet met this date in a Closed Session at 5:38 p.m. in the City Council Chamber, 450 E. Latham Avenue, Hemet, California with Mayor Males presiding.

2. ROLL CALL
City Clerk Maier provided the Roll Call as follows:

Present: Mayor Males
Mayor Pro Tem Lilienthal
Council Members Krupa, Peterson, and Meyer
Staff Present:

Interim City Manager:

Interim City Attorney:

Clerk:

Eddie Pust
Steven Graham
John Paul Maier

3. PUBLIC COMMENT PERIOD - RULES OF DECORUM, RESOLUTION NO. 4545
Mayor Males asked for Public Comments; no one spoke.

Council recessed into Closed Session at 5:39 p.m.

4. DISCUSSION ITEMS

13.A

4.A CONFERENCE WITH LEGAL COUNSEL - INITIATION OF

LITIGATION
Pursuant to Section 54956.9 (d)(4) – 1 Case

4.B CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED

LITIGATION
Significant Exposure to Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9
Number of Cases (1)

5. ADJOURNMENT OF CLOSED SESSION
Closed Session was adjourned at 6:23 p.m.

6. PUBLIC COMMENT PERIOD - RULES OF DECORUM, RESOLUTION NO. 4545 Mayor Males asked for Public Comments; Mary Ann Mari, Julie Paule, and Rod Anderson.

7. WORK STUDY ITEM - 6:00 P.M.

7.A Discussion and Possible Action Regarding an Urgency Ordinance of the City Council of the City of Hemet, California, of a Mobile Home Park Rent Stabilization Ordinance
Action:

The City Council received the presentation from staff regarding mobile home rent stabilization in the City of Hemet and directed staff to solicit applications for the Mobile Home Rent Review Commission.

Mayor Males recessed the meeting at 6:52 p.m.

REGULAR MEETING - 7:00 P.M.

8. CALL TO ORDER
The City Council of the City of Hemet met on this date in a Regular Session at 7:02 p.m. in the City Council Chamber, 450 E. Latham Avenue, Hemet, California, with Mayor Males presiding.

9. ROLL CALL
City Clerk Maier provided the Roll Call as follows:

Present: Council Member Krupa
Council Member Meyer
Council Member Peterson
Mayor Pro Tem Lilienthal
Mayor Males

13.A

Absent:

Staff

Present:

Interim City Manager Pust
City Attorney Graham
City Clerk Maier

10. INVOCATION
The invocation was given by Deputy Fire Chief Ryan Webb.

11. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Pro Tem Lilienthal.

12. CITY ATTORNEY CLOSED SESSION REPORT
Interim City Attorney Graham stated there were no reportable actions from the 5:30 p.m. Closed Session.

12.A City Attorney’s Report regarding Closed Session

13. COMMUNICATIONS FROM THE PUBLIC
Mayor Males asked for Public Comments, and the following citizens spoke: Rudy Reypach, Tom Lodge, Jerrianne Franklin, Terry Larned, and “Nurse” Judy participated via Zoom teleconference.

13.A Public Comment for Items Listed on the Agenda: Consent and Discussion Items

13.B Public Comment for Items Not Listed on the Agenda, but within Jurisdictional Matter

14. PRESENTATIONS

14.A National Black History Month Proclamation
Mayor Males presented the proclamation to Aree Williams.

15. RECEIVE AND FILE

15.A The City of Hemet Warrant Registers Dated December 29, 2022, in the amount of $1,379,944.39 and January 12, 2023, in the amount of $1,514,714.21. The Payroll Periods of December 12, 2022 – December 25, 2022, in the amount of $864,947.80 and December 26, 2022 – January 8, 2023, in the amount of $833,156.97
Action:

13.A

The City Council received and filed the City of Hemet Warrant Registers.

15.B Investment Report for December 2022
Action:

The City Council received and filed the Investment Report for December 2022.

16. CONSENT CALENDAR

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to approve the Consent Calendar, with the removal of Item 16.A for separate consideration.

16.A Approval of the Regular City Council Meeting Minutes of January 24, 2023
Action:

MOTION BY COUNCIL MEMBER KRUPA, SECOND BY COUNCIL
MEMBER PETERSON, CARRIED 5-0, to approve the Regular City Council Meeting Minutes of January 24, 2023, as amended to make the following corrections: 7.D correcting a voting error with a strike through (COUNCIL MEMBER MEYER VOTING NO) and 17.D Southern California Association of Governments General Assembly Delegates Malcolm Lilienthal and Joe Males.

16.B Second Reading and Adoption of Ordinance 2007, an Ordinance of the City Council of the City of Hemet, California, Amending Section 82-172 of the Hemet Municipal Code Related to Undergrounding of Utilities
Action:

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to waive further reading and adopt Ordinance 2007, an Ordinance of the City Council of the City of Hemet, California, Amending Section 82-172 of the Hemet Municipal Code Related to Undergrounding of Utilities.

16.C A Resolution of the City Council of the City of Hemet, California, Adopting and Promulgating the Conflict of Interest Code and Designated Officials and Employees of the City Required to File a Statement of Economic Interest and Rescinding Resolution No. 2020- 074

13.A

Action:

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to adopt Resolution 2023-037, a Resolution of the City Council of the City of Hemet, California, Adopting and Promulgating the Conflict of Interest Code and Designated Officials and Employees of the City Required to File a Statement of Economic Interest and Rescinding Resolution No. 2020-074.

16.D A Resolution Accepting the 2022 Federal Justice Assistance Grant (JAG) in the Amount of $28,679, Authorizing the MOU/Interlocal Fiscal Agent Agreement with Riverside County and Authorizing the City Manager to Execute the Agreement on behalf of the City, and Authorizing the Finance Department to establish an expenditure account and increase the budget in the amount of $25,811 (grant amount less 10% paid to the Fiscal Agent)
Action:

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to adopt Resolution 2023-030, a Resolution of the City Council of the City of Hemet, California, accepting the 2022 JAG Grant, when awarded, in the amount of $28,679; authorize approval of the MOU Agreement regarding the Fiscal Agent (FA) with Riverside County; authorize the City Manager to execute the MOU Agreement; and authorize the Finance Department to increase the operating budget to allocate and appropriate the grant funds in the amount of $25,811 (grant amount less the 10% paid to the Fiscal Agent).

16.E A Resolution of the City Council of the City of Hemet, California, Approving the Termination of the Agreement with CSG Consultants Action:

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to adopt Resolution 2023-031, a Resolution of the City Council of the City of Hemet, California, Approving the Termination of the Agreement with CSG Consultants

16.F A Resolution of the City Council of the City of Hemet, California, Approving the Termination of the Agreement with 4Leaf, Inc.

Action:

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to adopt Resolution 2022-032, a Resolution of the City Council of the City of Hemet, California, Approving the Termination of the Agreement with 4Leaf, Inc.

13.A

16.G A Resolution of the City Council of the City of Hemet, California, Approving the Second Amendment to the Agreement for Services between the City of Hemet and HR Green Pacific, Inc. for a Contract Amount Not to Exceed a Total of $265,000 and Authorizing the City Manager to Execute the Agreement for a One-Year Term With Month to Month Extensions
Action:

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to adopt Resolution 2023-033, a Resolution of the City Council of the City of Hemet, California, Approving the Second Amendment to the Agreement for Services between the City of Hemet and HR Green Pacific, Inc. for a Contract Amount Not to Exceed a Total of $265,000 and Authorizing the City Manager to Execute the Agreement for a One-Year Term With Month to Month Extensions.

16.H A Resolution of the City Council of the City of Hemet, California, Approving the Lease Agreement By and Between the City of Hemet and Amerco Real Estate Company, a Nevada Corporation, DBA: U- HAUL Center Hemet, CA (Tenant) for the Property Located at 250 Meier Street, Hemet, CA 92544, the Tenant's Commercial Rental Business, for the Parking of U-Haul Rental Trucks and Trailers in the Vacant Parcel Adjacent to the U-Haul Property (East Side) Action:

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to adopt Resolution 2023-034, a Resolution of the City Council of the City of Hemet, California, Approving the Lease Agreement By and Between the City of Hemet and Amerco Real Estate Company, a Nevada Corporation, DBA: U-HAUL Center Hemet, CA (Tenant) for the property located at 250 Meier Street, Hemet, CA 92544, the Tenant's commercial rental business, for the parking of U- Haul rental trucks and trailers in the vacant parcel adjacent to the U-Haul property (east side).

16.I A Resolution of Intention of the City Council of the City of Hemet, California, to Establish City of Hemet Community Facilities District No. 2023-01 (Morgan Crossing, located in the area of west Stetson Ave. and east of Warren) and to Authorize the Levy of a Special Tax within City of Hemet Community Facilities District No. 2023-01 (Morgan Crossing)
Action:

13.A

MOTION BY COUNCILMEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 5-0, to adopt Resolution 2023-035, a Resolution of Intention of the City Council of the City of Hemet, California, to Establish City of Hemet Community Facilities District No. 2023-01 (Morgan Crossing,) and to Authorize the Levy of a Special Tax within City of Hemet Community Facilities District No. 2023-01 (Morgan Crossing).

17. DISCUSSION - ACTION ITEMS

17.A A Resolution of the City Council of the City of Hemet, California, Approving an Agreement with eCIVIS for Year Two ($53,800.00) and Year Three ($53,800.00) of a Grant Management Software in the Amount of $107,600.00, Authorizing the City Manager to Execute the Agreement and Related Documents, and Authorizing the Finance Director to Record a Supplemental Appropriation in the American Rescue Plan, Fund 270
Action:

MOTION BY COUNCIL MEMBER KRUPA, SECOND BY COUNCIL
MEMBER MEYER, CARRIED 5-0, to continue the item to a future City Council Meeting date uncertain.

17.B Discuss the Hemet Valley Bikeway Project (CIP 5696) Construction Bid Results and Provide Direction Regarding the Appropriation of Additional Funds Necessary to Award the Construction and Construction Management & Inspection Agreements
Action:

MOTION BY COUNCIL MEMBER KRUPA, SECOND BY MAYOR PRO
TEM LILIENTHAL, CARRIED 3-2 (COUNCIL MEMBER MEYER AND
MAYOR MALES VOTING NO), to adopt Resolution 2023-036, a Resolution of the City Council of the City of Hemet, California, Awarding Granite Construction Company a Construction Agreement in the Amount of $3,032,303, and Waiving any Minor Bid Irregularities, and Authorizing the City Manager to Approve Additional Construction Expenditures not to Exceed 10% of the Contract Amount or $303,230, and Awarding Willdan Engineering a Construction Management and Inspection Agreement in the Amount of $211,113.60, and Authorizing the City Manager to Execute all Contract Documents, and Directing the Finance Director to Re- Appropriate $1,581,646.60 of ARPA Funds From CIP 5743, and Authorizing the City Clerk to Record the Notice of Completion Upon Acceptance of the Work by the City Engineer all for the Hemet Valley Bikeway Project, CIP 5696, Federal Aid Project No. ATPSB1L-5186(018).

16. CITY COUNCIL AND STAFF REPORTS

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Mayor Males asked for Council Comments. Council Member Krupa, Council Member Peterson, Council Member Meyer, Mayor Prom Tem Lilienthal, and Mayor Males gave reports.

INTERIM CITY MANAGER PUST

17. FUTURE AGENDA ITEMS
Mayor Males asked Council if there were any requests for Future Agenda Items;

MOTION BY COUNCIL MEMBER PETERSON, SECOND BY MAYOR
MALES, MOTION RESCINDED, to remove Future Agenda Item 1.

MOTION BY COUNCIL MEMBER KRUPA, SECOND BY COUNCIL
MEMBER PETERSON, CARRIED 5-0, to remove Future Agenda Items 6, 7, and 8.

MOTION BY COUNCIL MEMBER PETERSON, SECOND BY COUNCIL
MEMBER PETERSON, CARRIED 5-0, to remove the verbiage of Future Agenda Item 5.

MOTION BY COUNCIL MEMBER MEYER, SECOND BY MAYOR
MALES, CARRIED 5-0, to remove Future Agenda Item 4.

MOTION BY COUNCIL MEMBER PETERSON, SECOND BY MAYOR
MALES, CARRIED 3-2 (COUNCIL MEMBER MEYER AND MAYOR PRO
TEM LILIENTHAL VOTING NO), to add the to Future Agenda Items a discussion of the proposed Riverside University Health System-Behavioral Health Recovery Village and to reconsider the letter of support sent on behalf of the City of Hemet to the Department of Health Care Services’ Behavioral Health Continuum Infrastructure Program for grant funding of the Health Recovery Village.

1. Broadcasting of City Council Meetings

2. Animal Control Regulations for Businesses

3. Solar Feasibility

4. Review of Resolution No. 4703

5. Traffic Study for Intersections of Myers Street/Devonshire Avenue & of Warren Road/Devonshire Avenue

6. In-Kind Services Discussion

7. Special Events Discussion

8. Rent Control of Mobile Home Parks

18. ADJOURNMENT
There being no further business, Mayor Males adjourned the meeting at 8:49 p.m. The next Regular City Council Meeting will be at 7:00 p.m. on February 28, 2023.

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APPROVAL: ATTEST:

_______________________________
Mayor Males

_____________________________
John P. Maier, MMC
City Clerk

13.A

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 28 2023
Department: City Attorney
Submitted by: Mark Prestwich, City Manager
Steven Graham, City Attorney;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

An Ordinance of the City Council of the City of Hemet, California, Repealing Sections 78 -188 through 78-192 of the Hemet Municipal Code Regarding Bicycle Licenses

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Introduce by t itle only, waive full reading of the ordinance, and direct the City Clerk to place the ordinance on the agenda for the next regular City Council meeting for second reading and adoption.

BACKGROUND:

On September 16, 2022 the Governor approved Assembly Bill No. 1909 which provides, among other things, that cities may no longer require bicycles to be licensed with the city to operate within the jurisdiction.

DISCUSSION:

Hemet Municipal Code Sections 78-188 through 78-192 require bicycles be licensed to operate in the City of Hemet. Those sections would be repealed by the contemplated ordinance.

PREVIOUS COUNCIL ACTION:

None

STRATEGIC PLAN INTEGRATION:

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

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Objective 2: Evaluate existing practices to ensure continuity with industry best practices.

Objective 3: Provide Council with policies that are consistent while lessening liabilities.

FISCAL IMPACT:

None

ALTERNATIVE(S):

The City Council could leave the ordinance within the Hemet Municipal Code, but the sections would be unenforceable.

ATTACHMENT(S):

Hemet Ordinance to Repeal Bicycle License (00092214xB0EC9)

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00092214.1 - 1 -
HEMET ORDINANCE NO. XXX

CITY OF HEMET

HEMET, CALIFORNIA
ORDINANCE NO. XXX

AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF

HEMET, CALIFORNIA,
REPEALING SECTIONS 78-188
THROUGH 78-192 OF THE

HEMET MUNICIPAL CODE

REGARDING BICYCLE

LICENSES
WHEREAS, Section 78-188 through 78-192 of the
Hemet Municipal Code require and regulate the provision of bicycle licenses; and
WHEREAS, the California Legislature has enacted
Assembly Bill 1909 prohibiting cities or counties from requiring any bicycle operated within its jurisdictions to be licensed.

NOW, THEREFORE, THE CITY COUNCIL OF THE
CITY OF HEMET DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Municipal Code Amendment.

Sections 78-188 through 78-192, pertaining to bicycle
licensure, of Chapter 78 (Traffic and Vehicles), Article V (Bicycles, Scooters, Roller Skates, Skateboards, etc.) of the Hemet Municipal Code are hereby repealed.

SECTION 2. Severability. If any section, subsection,
subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or

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unconstitutional by the decision of any court of competent jurisdiction, such determination shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 3. Publication. The City Clerk is
authorized and directed to cause this Ordinance to be
published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code Section 39633(c).

SECTION 4. Effective Date. This Ordinance shall
take effect thirty (30) days from its passage by the City Council of the City of Hemet.
///
///
///

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///
///
///
///
///
///

CITY OF HEMET

HEMET, CALIFORNIA
ORDINANCE NO. XXX

AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF

HEMET, CALIFORNIA,
REPEALING SECTIONS 78-188
THROUGH 78-192 OF THE

HEMET MUNICIPAL CODE

REGARDING BICYCLE

LICENSES
PASSED, APPROVED AND ADOPTED this
____ day of ______, 2023.
_____________________________________

JOE MALES, MAYOR

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ATTEST:
________________________________

JOHN MAIER, CITY CLERK

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City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 28 2023
Department: Administration
Submitted by: Mark Prestwich, City Manager
John Maier, City Clerk;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Approving an Agreement for Services with ECS Imaging, Inc. for Additional Subscription Licenses, Public Portal Upgrades, and Other Improvements to the City's Laserfiche Document Repository System for the Amount of $62,995, and Authorize the City Manager to Execute the Agreement and Purchase Orders in Support of the Agreement

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Approving an Agreement for Services with ECS Imaging, Inc. for Additional Subscription Licenses, Public Portal Upgrades, and Other Improvements to the City's Laserfiche Document Repository System in the Amount of $62,995, and Authorize the City Manager to Execute the Agreement and Purchase Orders in Support of the Agreement.

BACKGROUND:

The need for central storage of documents is necessary for maintaining and housing a variety of vital documents. Laserfiche was first acquired by the City in the early 2000s. Laserfiche is a digital imaging technology that stores all City Council reports, agendas, minutes, and other vital documents.

City staff currently utilizes the Laserfiche system with a limited number of licenses and capabilities. It is critical to the City Clerk's Office's ability to store, retrieve, and transfer large quantities of reports and other forms of data for staff requests and public records requests.

ANALYSIS:

Updating Laserfiche software will provide new improvements to better search and retrieve documents.

The top three improvements for Laserfiche include:

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1. An increase in the number of subscription participants to access documents internally and externally. C ity Departments will be able to utilize LaserFiche with the additional licenses purchased. Members of the public will be able to access documents through the public portal, ultimately reducing requests for records and staff time dedicated to those requests.

2. Acquire LaserFiche Forms Portal Add -on, allowing forms to be processed and stored will increase efficiency in processing requests in the Human Resources Division.

3. ArcGIS integration will also be configured in the weblink portal, making documents accessi ble to the public via the map portal.

Laserfiche is a leading enterprise content management system, utilized by more than 35,000 organizations worldwide, with a strong emphasis on local government records. ECS Imaging, Inc. is a certified Laserfiche Value Added Reseller (VAR) and specializes in government implementation of Laserfiche. ECS Imaging is headquartered in Riverside, California, and will be available to provide rapid on-site support as necessary. The staff has evaluated the update to Laserfiche t o ensure that it complies with the following criteria:

Comply with industry -recognized standards relating to security techniques and information security management, and provide administrative users with controls to prevent stored records from being overwritten, deleted, or altered.

Provide tools and features to enable workflow efficiencies, improve information sharing, improved document searchability, decrease duplication of records, and minimize costs for carrying out the governance of an effective Records and Information Program.

Once implemented, ECS will work with staff to transfer all scanned documents and all current documents housed to the new system. The proposal includes a Weblink Public Portal providing the public with customizable access to records in a read -only format. In addition, 200 oversized maps in the Engineering Department and all Planning Commission Resolutions are scheduled to be scanned and imported into Laserfiche. If awarded, ECS would proceed in prepping, indexing, and working with the City Clerk's Department to import records directly into Laserfiche.

DISCUSSION:

On March 4, 2022, the City Clerk's Department identified and proposed a Records Management Project, improving the accessibility, organization, and efficiency of re cords retrieval. Through several updates for contract management and the archival process for the City's vital records, the City Clerk's Office began purchasing the equipment, tools, and materials necessary for preserving and organizing documents.

After a review of available options, staff believes it is in the best interest of the City to award the Contract Services Agreement for document indexing and implementation of software to ECS, utilizing the California Multiple Award Schedule (CMAS) contrac t number 3 -19-70-2982C. ECS has firsthand knowledge of the system configurations and requirements. They have recently been awarded contracts for services by the cities of Canyon Lake and Palm Springs. Staff has reviewed the scope of services and finds that ECS is offering the City of Hemet comparatively discounted prices and will offer training for staff as part of the implementation.

PREVIOUS COUNCIL ACTION:

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The City Council approved the project as part of the proposed American Rescue Plan Act (ARPA) projects at a special meeting on March 4, 2022, and authorized the Finance Director to establish appropriations for the project.

STRATEGIC PLAN INTEGRATION:

GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.

Objective 2: Increase transparency for the public.

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

Objective 2: Evaluate existing practices to ensure continuity with industry best practices.

Objective 3: Provide Council with policies that are consistent while lessening liabilities.

FISCAL IMPACT:

The proposed agreement with ECS Imaging, Inc. has a purchase cost of $62,995. The purchase cost is part of the appropriated funds established under ARPA Account 270-7009-2260.

ATTACHMENT(S):

ECS Imaging - Laserfiche Subscription - Agreement For Services Laserfiche Reso
ECS Imaging CMAS 3-19-70-2982C

13.C

RIV #4824-7673-3440 v5
DRAFT 10/7/20

AGREEMENT FOR SERVICES

By and Between

THE CITY OF HEMET,
a California municipal corporation

and

ECS IMAGING, INC.
a California Corporation

13.C

RIV #4824-7673-3440 v5
DRAFT 10/7/20

AGREEMENT FOR SERVICES

BY AND BETWEEN

THE CITY OF HEMET, CALIFORNIA
AND
ECS IMAGING, INC.

This Agreement for Services (“Agreement”) is entered into as of this 1 1th day of January, 20 23 by and between the City of Hemet, a California municipal corporation (“City”) and ECS Imaging, Inc., a California corporation (“Service Provider”). City and Service P rovider are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has sought, by Co- operative Agreement the performance of the services defined and described particularly in Section 2 of this Agreement.

B. Service Provider, following submission of a Quote for the performance of the services defined and described particularly in Section 2 of this Agreement, was selected by the City to perform those services.

C. Pursuant to the City of Hemet’s Municipal Code, City has authority to enter into this Services Agreement and the City Manager has authority to execute this Agreement.

D. The Parties desire to formalize the selection of Service Provider for performance of those services defined and described particularly in Section 2 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained here and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

SECTION 1. TERM OF AGREEMENT.

Subject to the provisions of Section 20 "Termination of Agreement" of this Agreement, the Term of this Agreement is for 1 year com mencing on the date first ascribed above.

13.C

2 SECTION 2. SCOPE OF SERVICES & SCHEDULE OF PERFORMANCE. (a) Scope of Services. Service Provider agrees to perform to the satisfaction of the City the services set forth in Exhibit “A” “Scope of Services” (hereinafter, the “Services”) and made a part of this Agreement by this reference. (b) S chedule of Performance. The Services shall be completed to the satisfaction of the City pursuant to the schedule specified in Exhibit “A.” Should the Services not be completed pursuant to that schedule, the Service Provider shall be deemed to be in Default of this Agreement. The City, in its sole discretion, may choose not to enforce the Default provisions of this Agreement and may instead allow Service Provider to continue performing the Services.

SECTION 3. ADDITIONAL SERVICES.

Service Provider shall not be compensat ed for any work rendered in connection with its performance of this Agreement that are in addition to or outside of the Services unless such additional services are authorized in advance and in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement. If and when such additional work is authorized, such additional work shall be deemed to be part of the Services.

SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this Agreement, City agrees to pay Service Provider the amounts specified in Exhibit “B” “Compensation” and made a part of this Agreement by this reference. The total compensation, including reimbursement for actual and reasonable expenses, shall not exceed sixty- two thousand nine hundred and ninety -five dollars ($62,995.00), unless additional compensation is approved in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement.
(b) Each month Service Provider shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories: labor (by sub- category), travel, materials, equipment, supplies, and subcontractor contracts. Subcontractor charges shall be detailed by the following categories: labor, travel, materials, equipment and supplies. If the compensation set forth in subsection (a) and Exhibit “B” include payment of labor on an hourly basis (as opposed to labor and materials being paid as a lump sum), the labor category in each invoice shall include detailed descriptions of task performed and the amount of time incurred for or allocated to that task. City shall independently review each invoice submitted by the Service Provider to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to the terms set forth in subsection (c). In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Service Provider for correction and resubmission.

13.C

3 (c) Except as to any charges for work performed or expenses incurred by Service Provider which are disputed by City, City will use its best efforts to cause Service Provider to be paid within forty -five (45) days of receipt of Service Provider ’s correct and undisputed invoice.
(d) Payment to Service Provider for work performed purs uant to this Agreement shall not be deemed to waive any defects in work performed by Service Provider.
(e) In compliance with federal, stat e and City procurement regulations, the City obtained competitive pricing for the Project using the CMAS Contract # 3- 19-70- 2982C Cooperative Agreement with Contractor, attached hereto and incorporated herein by reference as Exhibit “D” [Cooperative Agreement].

SECTION 5. INSPECTION AND FINAL ACCEPTANCE.

City may inspect and accept or reject any of Service Provider ’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Service Provider’s work within sixty (60) days after submitted to City. City shall reject work by a timely written explanation, otherwise Service Provider ’s work shall be deemed to have been accepted. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as amount to fraud. Acceptance of any of Service Provider ’s work by City shall not constitute a waiver of any of the provisions of t his Agreement including, but not limited to, Section 16 “Indemnification” and Section 17 “Insurance.”
SECTION 6. OWNERSHIP OF DOCUMENTS.

All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared, developed or discovered by Service Provider in the course of providing the Services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Service Provider . Upon completion, expiration or termination of this Agreement, Service Provider shall turn over to City all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.

If and to the extent that City utilizes for any purpose not related to this Agreement any maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files or other documents prepared, developed or discovered by Service Provider in the course of providing the Services pursuant to this Agreement, Service Provider ’s guarantees and warranties in Section 9 “Standard of Performance” of this Agreement shall not extend to such use of the maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files or other documents.

13.C

4 SECTION 7. SERVICE PROVIDER'S BOOKS AND RECORDS.
(a) Service Provider shall maintain any and all documents and records demonstrating or relating to Service Provider ’s performance of the Services. Service Provider shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to work, services, expenditures and disbursements charged to City pursuant to this Agreement.

Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently complete and detailed so as to permit an accurate evaluation of the services provided by Service Provider pursuant to this Agreement. Any and all such documents or records shall be maintained for three (3) years from the date of execution of this Agreement and to the extent required by laws relating to audits of public agencies and their expenditures. (b) Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit and copying, at any time during regular business hours, upon request by City or its designated representative. Copies of such documents or records shall be provided directly to the City for inspection, audit and copying when it is practical to do so; otherwise, unless an alternative is mutually agreed upon, such documents and records shall be made available at Service Provider’s address indicated for receipt of notices in this Agreement. (c) Where City has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or discarded due to dissolution or termination of Service Provider ’s business, City may, by written request, require that custody of such documents or records be given to the City. Access to such documents and records shall be granted to City, as well as to its successors -in-interest and authorized representatives.

SECTION 8. INDEPENDENT CONTRACTOR.
(a) Service Provider is and shall at all times remain a wholly independent contractor and not an officer, employee or agent of City. Service Provider shall have no authority to bind City in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City.
(b) The personnel performing the Services under this Agreement on behalf of Service Provider shall at all times be under Service Provider’s exclusive direction and control. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall have control over the conduct of Service Provider or any of Service Provider’s officers, employees, or agents except as set forth in this Agreement.

Service Provider shall not at any time or in any manner represent that Service Provider or any of Service Pr ovider’s officers, employees, or agents are in any manner officials, officers, employees or agents of City.

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5 (c) Neither Service Provider , nor any of Service Provider ’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Service Provider expressly waives any claim Service Provider may have to any such rights.

SECTION 9. STANDARD OF PERFORMANCE.

Service Provider represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent and professional manner. Service Provider shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services. In meeting its obligations under this Agreement, Service Provider shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to the Services required of Service Provider under this Agreement. In addition to the general standards of performance set forth this section, additional specific standards of performance and performance criteria may be set forth in Exhibit “A” “Scope of Work” that shall also be applicable to Service Provider’s work under this Agreement. Where there is a conflict between a general and a specific standard of performance or performance criteria, the specific standard or criteria shall prevail over the general.

SECTION 10. COMPLIANCE WITH APPLICABLE LAWS ; PERMITS AND LICENSES.

Service Provider shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this Agreement. Service Provider shall obtain any and all licenses, permits and authorizations necessary to perform the Services set forth in this Agreement. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Service Provider to comply with this section.

SECTION 11. PREVAILING WAGE LAWS
It is the understanding of City and Service Provider that California prevailing wage laws do not apply to this Agreement because the Agreement does not involve any of the following services subject to prevailing wage rates pursuant to the California Labor Code or regulations promulgated thereunder: Construction, alteration, demolition, installation, or repair work performed on public buildings, facilities, streets or sewers done under contract and paid for in whole or in part out of public funds. In this context, “construction" includes work performed during the design and preconstruction phases of construction including, but not limited to, inspection and land surveying work.

SECTION 12. NONDISCRIMINATION.

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6 Service Provider shall not discriminate, in any way, against any person on the basis of race, color, religious creed, national origin, ancestry, sex, age, physical handicap, medical condition or marital status in connection with or related to the performance of this Agreement.

SECTION 13. UNAUTHORIZED ALIENS.

Service Provider hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq ., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Service Provider so employ such unauthorized aliens for the performance of the Services, and should the any liability or sanctions be imposed against City for such use of unauthorized aliens, Service Provider hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.

SECTION 14. CONFLICTS OF INTEREST.
(a) Service Provider covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Service Provider ’s performance of the Services. Service Provider further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the City Manag er. Service Provider agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
(b) City understands and acknowledges that Service Provider is, as of the date of execution of this Agreement, independently involved in the performance of non- related services for other governmental agencies and private parties. Service Provider is unaware of any stated position of City relative to such projects. Any future position of City on such projects shall not be considered a conflict of interest for purposes of this section.
(c) City understands and acknowledges that Service Provider will perform non-related services for other governmental agencies and private Parties following the completion of the Services under this Agreement. Any such future service shall not be considered a conflict of interest for purposes of this section.

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7 SECTION 15. CONFIDENTIAL INFORMATION; RELEASE OF INFORMATION. (a) All information gained or work product produced by Service Provider in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Service Provider . Service Provider shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the City Manager, except as may be required by law.
(b) Service Provider, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Respons e to a subpoena or court order shall not be considered "voluntary" provided Service Provider gives City notice of such court order or subpoena.
(c) If Service Provider, or any officer, employee, agent or subcontractor of Service Provider, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Service Provider for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Service Provider’s conduct.
(d) Service Provider shall promptly notify City should Service Provider , its officers, employees, agents or subcontractors, be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Service Provider or be present at any deposition, hearing or similar proceeding. Service Provider agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Service Provider. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

SECTION 16. INDEMNIFICATION.
(a) Indemnification for Professional Liability. Where the law establishes a professional standard of care for Service Provider’s services, to the fullest extent permitted by law, Service Provider shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all liability (including liability for claims, suits, actions, arbitr ation proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees) arise out of, are a consequence of, or are in any way attributable to, in whole or in part, any negligent or wrongful act, error or omission of Service Provider, or by any individual or entity for which Service Provider is legally liable, including but not limite d to officers, agents,

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8 employees or sub- contractors of Service Provider , in the performance of professional services under this Agreement.
(b) Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Service Provider shall indemnify, protect, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Service Provider, or by any individual or entity for which Service Provider is legally liable, including but not limited to officers, agents, employees or sub- contractors of Service Provider.
(c) I
ndemnification from Subcontractor s. Service Provider agrees to obtain executed indemnity agreements with provisions identical to those set forth in this section from each and ev ery subcontractor or any other person or entity involved by, for, with or on behalf of Service Provider in the performance of this Agreement naming the Indemnified Parties as additional indemnitees. In the event Service Provider fails to obtain such indemnity obligations from others as required herein, Service Provider agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth herein is binding on the successors, assigns or heirs of Service Provider and shall survive the termination of this Agreement or this section. (d) L
imitation of Indemnification. Notwithstanding any provision of this section to the contrary, design professionals are required to defend and indemnify the City only to the extent permitted by Civil Code Section 2782.8, which limits the liability of a design professional to claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional. The term “design professional,” as defined in Section 2782.8, is limited to licensed architects, licensed landscape architects, registered professional engineers, professional land surveyors, and the business entities that offer such services i n accordance with the applicable provisions of the California Business and Professions Code.
(e) Cit
y’s Negligence . The provisions of this section do not apply to claims occurring as a result of City’s sole negligence. The provisions of this section shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officials, employees and agents.

SECTION 17. INSURANCE.

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9 Service Provider agrees to obtain and maintain in full force and effect during the term of this Agreement the insurance policies set forth in Exhibit “C” “Insurance” and made a part of this Agreement. All insurance policies shall be subject to approval by City as to form and content. These requirements are subject to amendment or waiver if so approved in writing by the City Manager. Service Provider agrees to provide City with copies of required policies upon request.

SECTION 18. ASSIGNMENT.

The expertise and experience of Service Provider are material considerations for this Agreement. City has an interest in the qualifications and capability of the persons and entities who will fulfill the duties and obligations imposed upon Service Provider under this Agreement. In recognition of that interest, Service Provider shall not assign or transfer this Agr eement or any portion of this Agreement or the performance of any of Service Provider’s duties or obligations under this Agreement without the prior written consent of the City. Any attempted assignment shall be ineffective, null and void, and shall const itute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including termination of this Agreement pursuant to Section 20 “Termination of Agreement.” City acknowledges, however, that Service Provider, in the perf ormance of its duties pursuant to this Agreement, may utilize sub- contractors.

SECTION 19. CONTINUITY OF PERSONNEL.

Service Provider shall make every reasonable effort to maintain the stability and continuity of Service Provider ’s staff and sub- contractors, if any, as signed to perform the Services. Service Provider shall notify City of any changes in Service Provider ’s staff and sub- contractors, if any, assigned to perform the Services prior to and during any such performance.

SECTION 20. TERMINATION OF AGREEMENT.
(a) City may termin ate this Agreement, with or without cause, at any time by giving thirty (30) days written notice of termination to Service Provider . In the event such notice is given, Service Provider shall cease immediately all work in progress. (b) Service Provider may ter minate this Agreement for cause at any time upon thirty (30) days written notice of termination to City. (c) If either Service Provider or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Service Provider, or City may terminate this Agreement immediately upon written notice. (d) Upon termination of this Agreement by either Service Provider or City, all property belonging exclusively to City which is in Service Provider ’s possession shall be returned to City. Service Provider shall furnish to City a final invoice for work performed and expenses incurred by Service Provider , prepared as set forth in Section 4

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10 “Compensation and Method of Payment” of this Agreement. This final invoice shall be reviewed and paid in the same manner as set forth in Section 4 “Compensation and Method of Payment” of this Agreement.

SECTION 21. DEFAULT.

In the event that Service Provider is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Service Provider for any work performed after the date of default. Instead, the City may give notice to Service Provider of the default and the reasons for the default. The notice shall include the timeframe in which Service Provider may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Service Provider is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Service Provider does not cure the default, the City m ay take necessary steps to terminate this Agreement under Section 20 “Termination of Agreement.” Any failure on the part of the City to give notice of the Service Provider’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.

SECTION 22. EXCUSABLE DELAYS.

Service Provider shall not be liable for damages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of Ser vice Provider. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of federal, state or local governments, acts of City, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather.

The term and price of this Agreement shall be equitably adjusted for any delays due to such causes.

SECTION 23. COOPERATION BY CITY.

All public information, data, reports, records, and maps as are existing and available to City as public records, and which are necessary for carrying out the Services shall be furnished to Service Provider in every reasonable way to facilitate, without undue delay, the Services to be performed under this Agreement.

SECTION 24. NOTICES.

All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent by telecopier or certified mail, postage prepaid and return receipt requested, addressed as follows:

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11 To City: City of Hemet
Attn: City Manager
445 E. Florida Avenue
Hemet, CA 92543
To Service Provider: ECS Imaging, Inc.

Attn: Laura Wayman
5905 Brockton Ave Suite C
Riverside, CA 92506
Notice shall be deemed effective on the date personally deli vered or transmitted by facsimile or, if mailed, three (3) days after deposi t of the same in the custody of the United States Postal Service.

SECTION 25. AUTHORITY TO EXECUTE.

The person or persons executing this Agreement on behalf of Service Provider represents and warrants that he/she/they has/have the authority to so execute this Agreement and to bind Service Provider to the performance of its obligations hereunder.

SECTION 26. ADMINISTRATION AND IMPLEMENTATION.

This Agreement shall be administered and executed by the City Manager or his or her designated representative. The City Manager shall have t he authority to issue interpretations and to make amendments to this Agreement, including amendments that commit additional funds, consistent with Section 28 “Amendment” and the City Manager’s contracting authority under the Hemet Municipal Code.

SECTION 27. BINDING EFFECT.

This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

SECTION 28. AMENDMENT.

No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Service Provider and by the City. The City Manager shall have the authority to approve any amendment to this Agreement if the total compensation under this Agreement, as amended, would not exceed the City Manager’s contracting authority under the Hemet Municipal Code. A ll other amendments shall be approved by the City Council. The Parties agree that the requirement for written modifications cannot be waived and that any attempted waiver shall be void.

SECTION 29. WAIVER.

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12 Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant.

Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision nor a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Service Provider shall not constitute a waiver of any of the provisions of this Agreement.

SECTION 30. LAW TO GOVERN; VENUE.

This Agreement shall be interpreted, c onstrued and governed according to the laws of the State of California. In the event of litigation between the Parties, venue in state trial courts shall lie exclusively in the County of Riverside, California. In the event of litigation in a U.S. Distric t Court, venue shall lie exclusively in the Central District of California, in Riverside.

SECTION 31. ATTORNEYS FEES, COSTS AND EXPENSES.

In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing Party in such litigation or other proceeding shall be entitled to an award of reasonable attorney's fees, costs and expenses, in addition to any other relief to which it may be entitled.

SECTION 32. ENTIRE AGREEMENT.

This Agreement, including the attached Exhibits "A" t hrough "C", is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Service Provider and City prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid and binding.

SECTION 33. SEVERABILITY.

If any term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).

SECTION 34. CONFLICTING TERMS.

Except as otherwise stated herein, if the terms of this Agreement conflict with the terms of any Exhibit hereto, or with the terms of any document incorporated by reference into this Agreement, the terms of this Agreement shall control.

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13 IN WITNESS WHEREOF , the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF HEMET

Eddie Pust
Interim City Manager
ATTEST:

John Maier
City Clerk

APPROVED AS TO FORM

Steven Graham
City Attorney

SERVICE PROVIDER

________________________________
By:

Its:__________________________
By:

Its:__________________________

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EXHIBIT "A"

SCOPE OF SERVICES

I. Service Provider will perform to the satisfaction of the City the fol lowing Services:

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EXHIBIT "B"

COMPENSATION

I. Service Provider shall use the following rates of pay in the performance of the Services:

II. Total Compensation shall not exceed Sixty-Two Thousand Nine Hundred and Ninety-Five Dollars $62,995.00

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EXHIBIT "C"

INSURANCE

A. Insurance Requirements . Service Provider shall provide and maintain insurance, acceptable to the City, in full force and effect throughout the term of this Agreement, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Services by Service Provider, its agents, representatives or employees. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.

Service Provider shall provide the following scope and limits of insurance:

1. Minimum Scope of Insurance. Coverage shall be at least as broad as:

(1) Commercial General Liability. Insurance Services Office form Commercial General Liability coverage (Occurrence Form CG 0001).

(2) Automobile. Insu rance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, including code 1 "any auto" and endorsement CA 0025, or equivalent forms subject to the written approval of the City.

(3) Workers’ Compensation. Workers' Compensation insurance as required by the Labor Code of State of California covering all persons providing Services on behalf of the Service Provider and all risks to such persons under this Agreement.

(4) Professional Li ability. Professional liability insurance appropriate to the Service Provider’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to Services performed under this Agreement. The insurance must be maintained for at least three (3) consecutive years following the completion of Service Provider’s services or the termination of this Agreement. During this additional three (3) year period, Service Provider shall annually and upon request of the City submit written evidence of this continuous coverage.

2. Minimum Limits of Insurance. Service Provider shall maintain limits of insurance no less than:

(1) Commercial General Liability. $1,000,000 general
aggregate for bodily injury, personal injury and property damage.

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(2) Automobile. $1,000,000 per accident for bodily injury and property damage. A combined single limit policy with aggregate limits in an amount of not less than $2,000,000 shall be considered equivalent to the said required minimum limits set forth above.

(3) Workers' Compensation. Workers' Compensation as
required by the Labor Code of the State of California of not less than $1,000,000 per occurrence.

(4) Professional Liability. $1,000,000 per occurrence.

B. Other Provisions . Insurance policies required by this Agreement shall contain the following provisions:

1. All Policies . Each insurance policy required by this Agreement shall be endorsed and state the coverage shall not be suspended, voided, cancelled by the insurer or either Party to this Agreement, reduced in coverage or in limits except after 30 days' prior written notice by certified mail, return receipt requested, has been given to City.

2. Commercial General Liability and Automobile Liability Coverages.

(1) City, and its respective elected and appointed officers, officials, and employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities Service Provider performs; products and completed operations of Service Provider ; premises owned, occupied or used by Service Provider; or automobiles owned, leased, hired or borrowed by Service Provider .

The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, or employees.

(2) Service Provider’s insurance coverage shall be primary insurance with respect to City, and its respective elected and appointed, its officers, officials, employees and volunteers. Any insurance or self -insurance maintained by City, and its respective elected and appointed officers, officials, employees or volunteers, shall apply in excess of, and not contribute with, Service Provider ’s insurance.

(3) Service Provider’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

(4) Any failure to comply with the reporting or other provisions of the insurance policies, including breaches of warranties, shall not affect coverage

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provided to City, and its respective elected and appointed officers, officials, employees or volunteers.

3. Workers' Compensation Coverage. Unless the City Manager otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against City, and its respective elected and appointed officers, officials, employees and agents for losses arising from work performed by Service Provider.

C. Other Requirements. Service Provider agrees to deposit with City, at or before the effective date of this Agreement, certificates of insurance necessary to satisfy City that the insurance provisions of this contract have been complied with. The City may require that Service Provider furnish City with copies of original endorsements effecting coverage required by this Exhibit “C”. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. City reserves the right to inspect complete, certified copies of all required insurance policies, at any time.

1. Service Provider shall furnish certificates and endorsements from each sub-contractor identical to those Service Provider provides.

2. Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers, or the Service Provider shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims.

3. The procuring of such required policy or policies of insurance shall not be construed to limit Service Provider’s liability hereunder nor to fulfill the indemnification provisions and requirements of this Agreement.

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EXHIBIT “D”

Cooperative Agreement

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Laura Wayman
323-241-8294
[email protected]
ECS Imaging, Inc.
5905 Brockton Ave. Suite C
Riverside, CA 92506

Toll Free – (877) 790-1600
Phone: - (951) 787-8768
Fax - (951) 787-0831
www.ecsimaging.com
[email protected]

LASERFICHE AVANTE
Price List
Prepared for:

City of Hemet

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LASERFICHE AVANTE PRICE LIST

Laserfiche Avante Price List

Core System Components

Product Description Code Software Cost
1st year only
Annual Support
& Maintenance
Servers
*All Laserfiche Avante Servers include Laserfiche Workflow, one repository, and one Laserfiche Distributed Computing Cluster node.

Laserfiche Avante Server for SQL Express with Workflow* MSE10 $ 1,500.00 $ 300.00 Laserfiche Avante Server for MS SQL with Workflow* MSE30 $ 5,000.00 $ 1,000.00 Laserfiche Avante Records Management Edition Server for MS SQL with Workflow*
Requires purchasing Advanced Audit Trail for all Laserfiche Avante Named Full Users. Laserfiche Records Management Edition is DoD 5015.2 certified.

MSE35

$ 11,000.00

$ 2,200.00
Laserfiche Records Management Module MSM60 $ 6,000.00 $1,200.00 Laserfiche Avante Additional Repository for SQL Express MSA10 $ 1,000.00 $ 200.00 Laserfiche Avante Additional Repository for MS SQL MSA30 $ 1,000.00 $ 200.00 User Types
* Laserfiche Avante packages start with a minimum requirement of 10 Named Full Users Laserfiche Avante Named Full User
Includes Laserfiche Web Client, Laserfiche App, Laserfiche Snapshot, Laserfiche Integration with Microsoft Office, and Laserfiche Forms Essentials. Laserfiche Forms Essentials requires Laserfiche version

10.2.1 or later. Can either be allocated to a single user or a device.

Please note that devices cannot access Laserfiche web applications.

MNF16

$ 600.00

$ 120.00
Laserfiche Avante Participant User
Provides read-only repository access and the ability to participate in forms processes. Can only be allocated to a single user. Requires Laserfiche Directory Server.

MPAR $ 350.00 $ 70.00

*Please see Laserfiche Subscription price list below for subscription user licensing, which includes Laserfiche Participant, Community, and Education Users. Laserfiche Subscription Full Users cannot be combined with Laserfiche Avante Named Full Users.

Additional System Components
The quantity of system components must equal the quantity of Laserfiche Avante Named Full Users in system.

Product Description Code Software Cost Annual Support
& Maintenance
Laserfiche Starter Audit Trail MATS16 $ 50.00 $ 10.00
Laserfiche Standard Audit Trail MATM16 $ 75.00 $ 15.00
Laserfiche Advanced Audit Trail with Watermark MATX16 $ 100.00 $ 20.00 Laserfiche Digital Signatures MDGSG16 $ 25.00 $ 5.00
Laserfiche Connector MCNC16 $ 25.00 $ 5.00
Laserfiche Forms Professional
Form creation, submission, and ability to participate in routing for all Laserfiche Avante Named Full Users.

MFRM16

$ 50.00

$ 10.00

Server Add-ons

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LASERFICHE AVANTE PRICE LIST

Licensed per server.

Product Description Code Software Cost Annual Support
& Maintenance
Portal Add-on
Laserfiche Starter Public Portal
Includes 10 concurrent retrieval connections through Laserfiche WebLink.

MPP1

$ 25,000.00

$ 3,000.00
Laserfiche Standard Public Portal
Includes 25 concurrent retrieval connections through Laserfiche WebLink.

MPPS
$ 25,000.00

$ 5,000.00
Laserfiche Midsized Public Portal
Includes 50 concurrent retrieval connections through Laserfiche WebLink.

MPPM
$ 35,000.00

$ 7,000.00
Laserfiche Unlimited Public Portal
Includes unlimited concurrent retrieval connections through Laserfiche WebLink.

MPPX
$ 45,000.00

$ 9,000.00
Laserfiche Web Distribution Portal
Includes 5 concurrent retrieval connections through Laserfiche WebLink. All users log in with shared credentials.

MPD
$ 7,995.00

$ 1,600.00
Laserfiche Forms Portal
Requires Laserfiche Forms Essentials.

Allows form submissions from unlicensed (anonymous) users. Licensed for one Laserfiche Forms Server.

MPFRM

$ 7,995.00

$ 1,600.00
Integration Tool
Laserfiche Software Development Kit (SDK) MTKN $ 2,500.00 $ 750.00

Desktop Add-ons
Licensed per desktop.

Product Description Code Software Cost Annual Support
& Maintenance
Capture Tools
Laserfiche Quick Fields MCQ01 $ 595.00 $ 120.00
Laserfiche Quick Fields Scripting Kit MCQ18 $ 595.00 $ 120.00 Laserfiche Forms Combo
Includes Document Classification, Forms Alignment, Optical Mark Recognition, Forms Identification, Forms Extractor, and Zone OCR and Validation Package.

MCQC1

$ 9,995.00

$ 2,000.00
Laserfiche Document Classification MCQ09 $ 4,995.00 $ 1,000.00 Laserfiche Forms Alignment MCQ10 $ 2,495.00 $ 500.00
Laserfiche Optical Mark Recognition MCQ11 $ 2,495.00 $ 500.00 Laserfiche Forms Identification MCQ15 $ 2,495.00 $ 500.00 Laserfiche Forms Extractor MCQ16 $ 2,495.00 $ 500.00
Laserfiche Zone OCR and Validation Package MCQC3 $ 2,795.00 $ 560.00 Laserfiche Auto Stamp, Redaction, and Bates Numbering MCQ06 $ 495.00 $ 100.00 Laserfiche Barcode and Validation Package MCQC4 $ 1,695.00 $ 340.00 Laserfiche Real-Time Look Up and Validation Package MCQC5 $ 595.00 $ 120.00 Laserfiche Quick Fields Agent MCQ14 $ 9,955.00 $ 2,000.00 Laserfiche Import Agent MCA01 $ 1,495.00 $ 390.00
Scanner Driver
Laserfiche ScanConnect MCSX1 $ 0.00 $ 100.00

Laserfiche Avante Integrations

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LASERFICHE AVANTE PRICE LIST

Product Description Code Software
Cost
Annual Support
& Maintenance
Laserfiche for Ricoh MFD (2) MRC $400.00 $80.00
Laserfiche Connector for Samsung MSMC $400.00 $80.00
Keyed Integrator's License for Accela Integration (3) MACLA $0 $3,000.00 Keyed Integrator's License for EnerGov Integration (3) MENERGOV $0 $3,000.00 Keyed Integrator's License for SmartGov Integration (3) MSMTGOV $0 $3,000.00 Laserfiche Integration with DocuSign MDCSI $0 $300.00
Laserfiche Integration with Laser App MLASR $0 $300.00

Pricing Notes:

A minimum of one year support must be purchased with each new system. When new users or software are added to the system, support should be adjusted so that all components of the system have the same renewal date. (2) The Laserfiche for Ricoh MFD is certified by Ricoh PTEC program. Version 1.1 supports the legacy, java -based Ricoh devices. Version 2.0+ supports the Android-based Ricoh devices. (3) The integration includes a pool of 25 users for one Laserfiche server.

Laserfiche Subscription Add-ons
The following Subscription-based user licensing can be combined with a Laserfiche Avante on-premises system.

Subscription Users for Forms Participation. Quantities are able to fluctuate from year to year.

Description Quantity Code Annual Cost
Forms Participant Users: Participant user licenses allow you to view documents in the Laserfiche repository and authenticate to Laserfiche Forms to start processes and perform user tasks.

Laserfiche Forms Participant Users (Forms &
Retrievals)
10-199
JSPAR
$110.00
200-499 $55.00
500-999 $38.00
1,000+ $28.00
Community Users: Provides read-only repository access and the ability to participate in forms processes. For individuals not employed by the Licensee. Community users may not be used by Licensee’s employees, contractors, or consultants.

Laserfiche Community Users (Forms & Retrieval)
Block of 500
JSCOMM
$10,670.00
Block of 1,000 $16,000.00
Block of 2,000 $21,350.00
Block of 5,000 $32,000.00
Block of 10,000 $42,650.00
Block of 25,000 $53,350.00
Education Users: Provides read-only repository access and the ability to participate in forms processes. For Qualified Educational Intuitions
Laserfiche Education Users (Forms & Retrieval)
Block of 2,000

JSEDCOM
$10,675.00
Block of 5,000 $16,000.00
Block of 10,000 $21,325.00
Block of 25,000 $26,675.00

Optional Subscription based Modules CODE Annual Cost
Laserfiche Subscription Weblink (25 concurrent users) JPPM25 $12,130.00 Laserfiche Subscription Weblink (50 concurrent users) JPPM50 $16,200.00 Laserfiche Subscription Weblink (100 concurrent users) JPPM100 $20,800.00 Laserfiche Subscription Weblink (unlimited users) JPPMX $26,200.00 Laserfiche Subscription Forms Portal JEPFRM $3,880.00

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LASERFICHE AVANTE PRICE LIST

Laserfiche Subscription ScanConnect JSCO1 $90
Laserfiche Subscription ScanConnect 5-Pack JSC05 $330
Laserfiche Subscription ScanConnect 10-Pack JSC10 $450

OneSpan Electronic Signature

Product Description SKU Unit Price
OneSpan eSignature, Annual Transactions 1,000 - 4,999 OS-IE 1,000 $3.84 OneSpan eSignature, Annual Transactions 5,000 - 9,999 OS-IE 5,000 $3.14 OneSpan eSignature, Annual Transactions 10k - 24,999 OS-IE 10,000 $2.52 OneSpan eSignature, Annual Transactions 25k - 49,999 OS-IE 25,000 $1.85 OneSpan eSignature, Annual Transactions 50k - 99,999 OS-IE 50,000 $1.68 OneSpan eSignature, Annual Transactions 100k - 249,999 OS-IE 100,000 $1.19 OneSpan eSignature, Annual Transactions 250k - 499,999 OS-IE 250,000 $0.91 OneSpan eSignature, Annual Transactions 500k - 999,999 OS-IE 500,000 $0.70

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EXHIBIT “E”

Software Agreement

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1 LASERFICHE END USER LICENSE AGREEMENT

This Laserfiche End User License Agreement (“ EULA”) is between you and Compulink Management Center, Inc. dba Laserfiche or its affiliates (“ Laserfiche,” “Licensor,” “we”, “our,” and “us”) and governs your use of the accompanying Laserfiche software, which includes updates or upgrades, if any, provided by us for such software (collectively, “ Laserfiche Software ” or “ Software”), and associated Documentation (as defined below) (the Software and Documentation together, the “Laserfiche Product”). “You” and “ your” and “ Licensee” means the individual, company or other legal entity licensing the Laserfiche Product under this EULA.

1. Acceptance of Terms. THIS IS A LEGAL AGREEMENT THAT APPLIES TO ALL LASERFICHE PRODUCTS LICENSED ON AN ON -PREMISES BASIS. THIS AGREEMENT ALSO CONTAINS AN AGREEMENT TO ARBITRATE AND A CLASS ACTION WAIVER IN SECTION 18.8 . BY DOWNLOADING, INSTALLING, COPYING, ACCESSING OR UTILIZING THE LASERFICHE SOFTWARE (“USE”), YOU ACKNOWLEDGE

THAT YOU HAVE READ, UNDERSTOOD, AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS EULA. IF YOU ARE ACCEPTING THIS EULA ON BEHALF OF ANOTHER PERSON OR COMPANY

OR OTHER LEGAL ENTITY, YOU REPRESENT AND WARRANT THAT YOU HAVE FULL AUTHORITY TO BIND THAT PERSON, COMPANY OR LEGAL ENTITY TO THIS EULA.

IF YOU DO NOT AGREE TO THE TERMS AND CONDITIONS OF THIS EULA OR DO NOT HAVE TH E NECESSARY AUTHORITY , DO NOT USE THE LASERFICHE PRODUCT. P ROMPTLY RETURN THE LASERFICHE PRODUCT TO THE PARTY FROM WHOM IT WAS OBTAINED. IF THE SOFTWARE OR ANY

DOCUMENTATION WAS DOWNLOADED, DESTROY ALL COPIES OF THE SOFTWARE AND DOCUMENTATION.

2. License

2.1 Grant of License . For good and valuable consideration , Licensor grants you a limited, non - exclusive, non-transferable license to Use such Software, solely in executable code, in accordance with the Documentation, and Use a reasonable number of copies of the Documentation, in each case subject to the terms and conditions of this EULA and the License Requisition (the “License”).

The Laserfiche Product is owned by Laserfiche and is copyrighted and licensed, NOT SOLD.

• “License Requisition” means our invoic e, our written acceptance of an Order, or other written acceptance by us of an agreement, by which you acquire the License, which invoice, Order, or agreement, lists the specific Software product and component licenses that you purchase. The License Requisition may limit the scope of the License being granted or grant additional rights. For the avoidance of doubt, the reference hereinabove to, “ Order, or other written acceptance by us of an agreement, by which you acquire the License, which invoice, Order, or agreement, lists the specific Software product and component licenses that you purchase ”, does not include, and our acceptance of any Order or any other agreement by which you acquire the License does not constitute our acceptance of , any agreement between you and Laserfiche’s authorized reseller or distributor.

• “Documentation” means getting started guides, user guides, product help, product sheets, quick reference guides, articles, white papers, and other technical and operations manuals and specifications published by Laserfiche for the Software.

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2 • “Order” means an order, purchase order, or similar document that is submitted to us by you or a Laserfiche authorized reseller or distributor on your behalf, which specifies the particular Software products and components that you intend to license , and which shall not bind us unless (a) such document incorporates the terms and conditions of this EULA and (b) is accepted by us. Acceptance of any Order by us for licensing Software is made only on the express condition that the terms and conditions of this EULA shal l govern. Our failure to object to provisions contained in any Order or communication from you will not be deemed a waiver of any provision herein. Any additional or different terms proposed by you in any Order or communication shall be deemed material, are objected to, and are hereby rejected unless specifically accepted in a signed writing by an authorized representative of Laserfiche. For the avoidance of doubt, your agreement, if any, with Laserfiche’s authorized reseller or distributor, shall not constitute an Order.

2.2 License Scope. Laserfiche Software may include, without limitation: (a) "Server Software" that provides document management services to other programs; (b) "Client Software" that allows a computer or workstation to access or utilize the services functionality provided by the Server Software; (c) " Stand-alone Software" that operates on a single computer; (d) " Demonstration Software" that is provided only for demonstration, testing and feedback purposes; (e) "Distributed Computing Cluster Software" that allows distribution of processing work for certain Laserfiche application tasks onto other machines; and/or (f) "Plug-in Software Modules" that can be added to the previously mentioned types of software. Specific additional terms that accompany a software development kit or the Software designated for " application service provider" purposes will also apply to you. Your Use of the Laserfiche Product shall be subject to the Usage Limitations described in Section 6. In addition, you agree to the restrictions set forth in Section 5 below.

3. Evaluation License. If the Laserfiche Software is furnished to you for evaluation purposes or other limited, temporary use as authorized by us (“Evaluation Product”), your Use of the Evaluation Product is only permitted : (a) for the period limited by the license key or otherwise stated by us in writing (“Evaluation Period”), and (b) by your employees, contractors, and consultants for no purposes other than demonstration of the capabilities of the Softwar e to prospective licensees or evaluation and testing of the Software for suitability . No Evaluation Product may be used in a production environment. An Evaluation Product is licensed “AS-IS” without support or warranty (including any warranty provided in Section 12.1 ) of any kind, expressed or implied. Laserfiche does not assume any liability arising from any use of the Evaluation Product. You may not publish any results of benchmark tests run on the E valuation Product without first obtaining written approval from us.

Your receipt of the Evaluation Product does not constitute a license to use (other than as permitted in this Section), sell, distribute, or commercialize the Evaluation Product. No compensation will be paid to you for any use of the Evaluation Product . You authorize Laserfiche and its affiliates and sublicensees to use, in any manner (including in any products or services) and without any duty of accounting or other obligation whatsoever, any feedback or ideas you provide to us in connection with your use of the Evaluation Product. In addition to the restrictions set forth in Section 5, you shall not attempt to circumvent, dismantle or otherwise interfere with any time- control disabling functionality in the Evaluation Product that causes the Evaluation Product to cease functioning upon the expiration of the Evaluation Period. With respect to Evaluation Products, except to the extent this Section modifies this EULA, all other provisions stand and remain un altered. This Section shall apply only with respect to Evaluation Products.

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3 4. Ownership. We retain all rights to ownership of all intellectual property rights in and to the Software and Documentation, including copies, improvements, enhancements, deriva tive works and modifications. No other rights with respect to the Laserfiche Product or any related intellectual property rights are granted except as explicitly stated in this EULA and the applicable License Requisition. No implied licenses are granted by us.

5. License Restrictions. Unless expressly authorized by Laserfiche in writing, y ou will not and you will not allow any third party to: (a) unbundle, transfer, sublicense, or assign your rights under this License to any other person or entity; (b) m odify, adapt or create derivative works of the Software or Documentation; (c) reverse engineer, decompile, decrypt, disassemble or otherwise attempt to derive the source code for the Software, except as provided in Section 16 below; (d) make the functionality of the Software available to third parties, whether as an application service provider, or on a rental, service bureau, timeshare, cloud service, hosted service, or other similar basis unless expressly authorized by Las erfiche in writing , such as for read -only access by public users who utilize an authorized read-only Public Portal connection; (e) Multiplex (as defined herein below) the Software; (f) remove, modify, or conceal any product identification, copyright, proprietary, intellectual property notices or other marks on or within the Software or Documentation; (g) directly or indirectly attempt to challenge the validity of the copyrights, trademarks, and trade secrets in the Software claimed by Laserfiche or its suppliers; or (h) conduct any benchmark tests of the Software or disclose to a third party the results of any benchmark test of the Software. Neither Laserfiche nor any of its suppliers are obligated to provide any services (including any updates or upgrades to the Laserfiche Product) under this Agreement. To “Multiplex” the Software occurs when you utilize hardware, software, an automated process, or other technical means: (1) to pool connections, reroute information, or reduce the number of devices or us ers that directly access or use the Software; or (2) to permit access to more user connections than you have purchased; or (3) to automatically, routinely, or systematically reallocate named user connections for the purpose of either reducing the number of named user connections you require, or avoiding the purchase of additional named user connections.

6. Usage Limitations . Your Use of the Software is subject to the usage limitations described at https://www.laserfiche.com/eula/usage6.6.2018 and set forth in the License Requisition (each, a “Usage Limitation”).

7. Subscription Software

7.1 Subscription License. A subscription license to on-premises Laserfiche Software allows you to Use such Software on a subscription basis ( a “Subscription”, and such license, a “ Subscription License”). If you purchase a Subscription License, subject to your compliance with the terms and conditions of this EULA, you may Use the Software covered by the Subscription (the “Subscription Software”) for the term of the Subscription set forth in your License Requisition until the Subscription expires or is otherwise terminated. After the Subscription expires or is terminated, the Subscription Software will stop functioning entirely, and your rights to Use the Subscription Software will terminate.

7.2 Renewal of Subscription Term. Unless otherwise terminated according to the terms of this EULA, the Subscription will automatically renew for the term set forth in your invoice, unless (i) you fail to pay the renewal Subscription fee as invoiced to you by us or (ii) you give Laserfiche written notice of your intention not to renew the Subscription at least 45 days before the end of the then-

13.C

4 current Subscription term. The renewal Subscrip tion fee is due before the start of the renewal term. If you do not notify us at least 45 days before the end of the then -current Subscription term that you do not intend to renew the Subscription, you will owe Laserfiche the renewal Subscription fee.

7.3 Modification of Fees upon Renewal. We may modify the Subscription fee by notifying you at least 90 days before the end of the then -current Subscription term. The Subscription fee increase will take effect upon the start of the next Subscription term.

7.4 Consequences of Non-Payment. If you fail to make full payment of the Subscription fee and any outstanding balance remains unpaid 30 days after the due date, the Subscription Software will automatically stop functioning entirely. You must make full payment of the Subscription fee before the Subscription Software will resume functioning.

7.5 Updates and Support . The Subscription includes Software updates, access to online support resources, and Basic or Premium support as described in the Laserfiche Software Assurance Plan (“LSAP”) during the term of the Subscription.

8. Third Party Open Source Software. Certain items of independent, third-party code may be included in the Laserfiche Software that are subject to open source licenses (“Open Source Software”). Such Open Source Software is licensed under the terms of the license that accompanies such Open Source Software. Nothing in this EULA limits your rights under, or grants you rights that supersede, the terms and conditions of any applicable end user license for such Open Source Software.

9. Confidentiality and Other Restrictions

9.1 Confidentiality Restrictions. “Laserfiche Confidential Information” means: (a) the Laserfiche Software and Documentation; (b) Laserfiche’s source code, application programming interfaces, know-how, ideas, plans, designs, specifications, coding, programming, processes, production techniques, technology, methodology and trade secrets; (c) nonpublic information relating to Laserfiche’s business, customers, business plans, promotional and marketing activities, finances and other business affairs; (d) third-party information that we are obligated to keep confidential by agreement or by law; (e) the nature, content and existence of any agreements, discussions or negotiations between you and us, or our software resellers; (f) any information that is designated by Laserfiche as “confidential” or “proprietary” or with a similar legend; and (g) any other information that given the nature of the information or circumstances surrounding its disclosure by us to you, reasonably should be understood to be confidential . Laserfiche Confidential Information does not include any information that: (i) is or becomes publicly available without either a breach of this EULA or a breach of an obligation of confid entiality by someone else; (ii) can be shown by documentation to have been known by you when it received it from us; (iii) is received from a third party that lawfully acquired and disclosed it without any obligation of confidentiality; or (iv) can be shown by documentation to have been independently developed by you without reference to the Laserfiche Confidential Information.

9.2 Additional Restrictions. You agree that, during the term of this EULA and after any termination or expiration of this EULA, you will not directly or indirectly, alone or in conjunction with any other person or company : (a) attempt to write or develop software in an effort to discover, copy or

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5 recreate the source code or any trade secrets contained or embodied in the source code of the Software; or (b) utilize the Software, Documentation, or Laserfiche Confidential Information, either directly or indirectly, to sell, market, develop or distribute any software product that competes with the Software; or (c) utilize the Software, Documen tation, or Laserfiche Confidential Information, directly or indirectly, to assist, advise or consult with any other person or company in selling, marketing, developing or distributing any software product that competes with the Software; or (d) publish the Software for others to copy or use; or (e) utilize the Software, Documentation, or Laserfiche Confidential Information, directly or indirectly, to convert, or to assist, advise or consult with any other person or company to convert, any end user of the Software to a software product that competes with the Software; or (f) seek to discover or use our trade secrets or Laserfiche Confidential Information by reverse engineering, decompiling, disassembling, copying or any other technique, except as provided in Section 16 below.

10. Term and Termination. This EULA will remain effective until the expiration of the applicable license or Subscription term as set forth in your License Requisition, unless terminated earlier in accordance with this EULA. You may term inate the EULA at any time by returning or destroying all versions and copies of the Software and the Documentation in your possession or control . This EULA will immediately terminate if you breach any of its terms or conditions, or if you fail to pay any portion of the applicable license or Subscription fees and you fail to cure that payment breach within 30 days of receipt of a written notice from us. Upon termination of this EULA, you must immediately cease all use of the Software and the Documentation and return to Laserfiche or destroy all versions and copies of the Software and the Documentation in your possession or control. You must remove and uninstall all Software programs and Documentation from all hard drives and othe r devices on which the Software or the Documentation may be found. The termination or expiration of this EULA will not terminate your obligations under this EULA, nor will it (i) release you from the obligation to pay any monies that you may owe Laserfiche; (ii) operate to discharge any liability that you incur before such termination or expiration; or (iii) waive any obligation which is intended to survive such termination or expiration. The rights and obligations of a party which by their nature must survive termination or expiration of this Agreement in order to achieve its fundamental purposes shall survive any termination or expiration of this EULA including, without limitation, the following Sections: 1 (Acceptance of Terms), 4 (Ownership), 5 (License Restrictions) , 8 (Third Party Software) , 9 (Confidentiality and Other Restrictions), 10 (Term and Termination), 11 (Indemnification), 12.2 (Exclusions), 12.3 (Disclaimer), 13 (Limitation of Liability), 14 (Application of Limitations and Disclaime rs to Consumers) , 15 (Basis of Bargain), 17 (Audit Rights), and 18 (Miscellaneous).

11. Indemnification. YOU HAVE SOLE AND EXCLUSIVE RESPONSIBILTY FOR BACKING -UP YOUR DATA OR

CONTENT OR THIRD-PARTY DATA OR CONTENT IN YOUR HARD DRIVE, SYSTEM, STORAGE OR DEVICE (collectively, “ Your Data ”) WHETHER OR NOT THE SOFTWARE INTERACTS WITH YOUR DATA .

LASERFICHE WILL NOT BE RESPONSIBLE FOR ANY LOSS OF DATA OR CONTENT. You hereby agree to indemnify, defend and hold harmless Laserfiche, its affiliates and authorized resellers, and each of Laserfiche’s, its affiliates’ and authorized resellers’ employees, officers, directors, shareholders, and agents (each, an “Indemnified Party”), from and against all claims, losses, liabilities, damages, fines, penalties, costs and expenses (including attorney’s fees) arising from or relating to: (i) Your Data, including any loss of Your Data for any reason whatsoever, (ii) your actions, misuse of the Software, non-compliance with this EULA, or failure to operate the Software in accordance with this EULA; (iii) your use of the Software including, without limitation, in violation of any applicable laws.

12. Limited Warranty; Exclusions; Disclaimer

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6 12.1 Limited Warranty. THE SOFTWARE IS WARRANTED SOLELY TO YOU, THE ORIGINAL LICENSEE, THAT, FOR A PERIOD OF 3 MONTHS FROM THE DATE THE SOFTWARE IS MADE AVAILABLE TO YOU (“Warranty Period” ), IT SHALL SUBSTANTIALLY CONFORM TO ITS DOCUMENTATION WHEN USED IN ACCORDANCE WITH THIS EULA. At its own expense and as its sole obligation and your excl usive remedy for any breach of this warranty, Laserfiche will: (a) at Laserfiche’s option, correct any reproducible errors in such nonconforming Software so that it conforms to the foregoing warranty or replace such nonconforming Software with Software tha t conforms to the foregoing warranty; or (b) if the options in clause (a) hereof are not commercially reasonable, as determined in Laserfiche's sole discretion, Laserfiche will refund to you the fees paid to Laserfiche for such non -conforming Software, in which case your right to use such Software will terminate. Any error correction provided to you will not extend the original Warranty Period.

12.2 Exclusions. Notwithstanding anything in this EULA, Laserfiche will have no responsibility or liability of any kind, whether for breach of warranty or otherwise arising or resulting from: ( a) combination of the Software with products, equipment, software, or data not supplied by Laserfiche; (b) any use based on unauthorized distribution or sale of the Laserfiche Product; (c) any use of the Laserfiche Product other than in accordance with this EULA; (d) any modification of the Laserfiche Product by anyone other than Laserfiche or contractors authorized in writing by Laserfiche; (e) any Laserfiche Product rendered defective or non-conforming, in whole or in part, due to: ( i) abnormal physical or electrical stress, abnormal environmental conditions, neglect, misuse, accident, fire or other hazard, ( ii) improper testing, handling, storage, transportation, operation, interconnection, or installation by anyone other than Laserfiche or contractors authorized in writing by Laserfiche, ( iii) failure to continually provide a suitable installation or operation environment, or (iv) any other cause beyond the range of normal use of such Laserfiche Product; or (v) any Evaluation Product.

12.3 Disclaimer. EXCEPT AS SET FORTH IN SECTION 12.1, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, LASERFICHE LICENSES THE SOFTWARE TO YOU "AS IS" AND WITH ALL FAULTS

AND DEFECTS AND EXPRESSLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES INCLUDING,

BUT NOT LIMITED TO , THE IMPLIED WARRANTIES OF MERCHANTABILITY , FITNESS FOR A

PARTICULAR PURPOSE , SATISFACTORY PURPOSE, TITLE, NONINFRINGEMENT, INTEGRATION, ACCURACY, AND COMPLETENESS. LASERFICHE DOES NOT WARRANT OR GUARANTEE THAT (A)

THE LASERFICHE PRODUCT WILL MEET YOUR REQUIREMENTS, ACHIEVE ANY INTENDED

RESULTS, OR BE COMPATIBLE OR (B) THAT THE LASERFICHE PRODUCT WILL OPERATE FAIL SAFE,

UNINTERRUPTED OR FREE FROM ERRORS OR DEFECTS OR THAT THE SOFTWARE WILL PROTECT AGAINST ALL POSSIBLE THREATS.

13. LIMITATION OF LIABILITY

13.1 EXCLUSION OF CERTAIN TYPES OF DAMAGES. TO THE FULLEST EXTENT PERMITTED UNDER

APPLICABLE LAW, UNDER NO CIRCUMSTANCES WILL LASERFICHE OR ITS AFFILIATES, RESELLERS,

DISTRIBUTORS, AGENTS , EMPLOYEES, OFFICERS, DIRECTORS, CONSULTANTS, OR SUPPLIERS (COLLECTIVELY, "REPRESENTATIVES") BE LIABLE TO YOU OR ANYONE ELSE FOR ANY SPECIAL,

INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR FOR LOST PROFITS ,

LOSSES FROM BUSINESS INTERRUPTION , LOSS OF BUSINESS REVENUES, GOODWILL,

INFORMATION OR DATA , COSTS OF RECREATING LOST OR CORRUPTED INFORMATION OR

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7 DATA, OR COSTS OF SUBSTITUTE SOFTWARE, PRODUCTS, OR SERVICES, REGARDLESS OF

WHETHER LASERFICHE OR ITS REPRESENTATIVES HAVE BEEN NOTIFIED OF THE POSSIBILITY OF

SUCH DAMAGES OR LOSSES , AND WHETHER BASED ON A BREACH OF CONTRACT OR

WARRANTY, OR NEGLIGENCE, MISREPRESENTATION OR OTHER TORT, OR ON ANY OTHER LEGAL

OR EQUITABLE THEORY, ARISING FROM OR RELATED TO THIS EULA, THE LASERFICHE PRODUCT,

ANY SERVICES, DELIVERY OF SUPPORT, OR THE PERFORMANCE OR NON-PERFORMANCE OF THE LASERFICHE PRODUCT OR ANY SERVICES.

13.2 LIMITATIONS ON DAMAGES. TO THE FULLEST EXTEN T PERMITTED UNDER APPLICABLE LAW,

ANY AND ALL DAMAGES SUFFERED BY YOU, ANY USER, AND ANYONE ELSE , FOR WHICH

LASERFICHE OR ITS REPRESENTATIVES ARE LIABLE, WHETHER ARISING FROM OR RELATING TO

THIS EULA, THE LASERFICHE PRODUCT , ANY SERVICES, OR THE PERFORMANCE OR NON -

PERFORMANCE OF THE LASERFICHE PRODUCT OR ANY SERVICES , WHETHER BASED ON A

BREACH OF CONTRACT OR WARRANTY, OR NEGLIGENCE, MISREPRESENTATION OR OTHER

TORT, OR ON ANY OTHER LEGAL OR EQUITABLE THEORY, WILL BE STRICTLY LIMITED TO THE

DOLLAR AMOUNT THAT YOU ACTUALLY PAID FOR THE DEFECTIVE SOFTWARE COMPONENT WITHIN THE 12 MONTH PERIOD IMMEDIATELY PRECEDI NG THE DATE THAT LASERFICHE RECEIVES NOTICE OF AN EXISTING OR POTENTIAL CLAIM OR SUIT AGAINST IT. NO CLAIM OR

SUIT MAY BE BROUGHT AGAINST LASERFICHE OR ITS REPRESENTATIVES BASED ON A BREACH

OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, MISREPRESENTATION OR OTHER TORT, OR ON ANY OTHER LEGAL OR EQUITABLE THEORY, MORE THAN 1 YEAR AFTER YOU FIRST

DISCOVERED OR SHOULD HAVE DISCOVERED ANY OF THE FACTS THAT GAVE RISE TO THE CLAIM OR SUIT. THIS LIMITATION OF LIABILITY IS CUMULATIVE AND NOT PER INCIDENT. THIS

LIMITATION APPLIES EVEN IF THE DAMAGES AVAILABLE TO YOU OR ANY OTHER CLAIMANT DO

NOT FULLY COMPENSATE THEM FOR ANY OR ALL OF THEIR LOSSES OR LASERFICHE WAS

ADVISED, KNEW OR SHOULD HAVE KNOWN, ABOUT THE POSSIBILITY OF SUCH DAMAGES OR LOSSES.

14. Application of Limitations and Disclaimers to Consumers. Certain states and/or jurisdictions do not allow the exclusion of implied warranties or limitation of liability for incidental or consequential damages with respect to consumers (i.e., a person acquiring goods otherwise than in the course of a business), so the exclusions set forth in Sections 12.3 and 13 above may not apply to you if you are a consumer. The limitations or exclusions of warranties and liability contained in this EULA do not affect or prejudice the statutory rights of a consumer. If you are a consumer, the limitations or exclusions of warranties and remedies contained in this Agreement shall apply to you only to the extent such limitations or exclusions and remedies are permitted under the laws of the jurisdiction where you are located.

15. Basis of Bargain. The warranty disclaimer in Section 12.3 and limitation of liability set forth in Section 13 are fundamental elements of the basis of the agreement between Laserfiche and you. Laserfiche would not be able to provide the Laserfiche Product on an economic basis without such limitations. The warranty disclaimer and limitation of liability inure to the benefit of Laserfiche’s Representatives.

16. Interoperability. To the extent required by applicable law , Laserfiche shall provide you with the interface information needed to achieve interoperability between the Software and another independently created program. Laserfiche will provide this interface information at your written requested after you pay Laserfiche’s licensing fees. You will keep this information in strict confidence

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8 and strictly follow any applicable terms and conditions upon which Laserfiche makes such information available.

17. Audit Rights. During the term of this EULA and for 1 year thereafter, you agree that we or our designated agent may inspect and audit the use of the Laserfiche Product licensed by you, including inspecting and auditing your and your affiliates’, and each of your and your affiliates’ contractors’, facilities, systems, and records, to verify compliance with this EULA. Any such inspection and audit will take place only during your and your affiliates’ normal business hours and upon no less than 10 days prior written notice to you. Laserfiche will give you written notice of any non -compliance, including any underpayment of fees, and you will have 15 days from the date of such notice to make payment to Laserfiche for such underpayment. If the shortfall in the amount payable by you exceeds 5% of the total amount that would otherwise be payable by you , you will also pay us for the cost of such inspection and audit. You will promptly pay us for any amounts shown by such audit to be due and owing to us plus interest at 1.5% per month, or the maximum amount permitted by applicable law, whichever is lower, from the due date until paid. You agree to take reasonable steps to maintain complete and accurate records of the use of the Laserfiche Product sufficie nt to verify compliance with this EULA.

18. Miscellaneous

18.1 Waiver; Severability. The failure of either party to exercise or enforce any right or provision of this Agreement will not constitute a waiver of such right or provision. All waivers by Laserfiche must be in writing to be effective. If any provision of this EULA is for any reason held unenforceable or invalid, then this EULA will be construed as if such provision were not contained in this EULA. No course of performance, course of dealing, or usage of trade will override the written terms of this EULA.

18.2 Entire Agreement and Order of Precedence. This EULA is the entire agreement between you and us regarding your use of the Laserfiche Product and supersedes all prior and contemporaneous agreements, proposals or representations, written or oral, concerning its subject matter. In the event of any conflict or inconsistency among the following documents, the order of precedence will be: (1) the License Requisition and (2) this EULA. Any agreement between you and Laserfiche’s authorized reseller or distributor: (a) does not modify the terms and conditions of this Agreement , the License Requisition, or any document comprising the License Requisition, and (b) does not create obligations for, or otherwise bind, Laserfiche.

18.3 Modifications to the EULA. If you install a new version of the Software, or any update, modification, or upgrade of the Software, the EULA applicable to the new updated, modified or upgraded version of the Software will modify this EULA upon such installation, if or to the extent that the new EULA is different than this EULA. A revised version of the EULA will be available at www.laserfiche.com/eula/home. By continuing to use the S oftware after the effective date of any modifications to this EULA, you agree to be bound by the modified terms.

18.4 Limitation on Actions. Any suit, claim, action or proceeding based on or related to t his EULA, its terms, provisions or warranties, or arising out of its performance or breach, whether in contract or tort, must be instituted by you against us within 1 year after the occurrence of any 1 or more of the acts, omissions, facts, conduct, events, claims or allegations upon which the

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9 action, proceeding or claim is based. You waive the benefit of any statute of limitations which specifies a period longer than 1 year for filing an action or proceeding.

18.5 U.S. Government End Users . Laserfiche Software is commercial computer software, as such term is defined in 48 C.F.R. §2.101. Accordingly, if you are part of the US Government or are a contractor for the U.S. Government, you shall receive only those rights with respect to the Software and Documentation as are granted to all other end users under license, in accordance with (a) 48 C.F.R. §227.7201 through 48 C.F.R. §227.7204, with respect to the Department of Defense and their contractors, or (b) 48 C.F.R. §12.212, with respect to all other U.S.

Government licensees and their contractors.

18.6 Export Restrictions. You acknowledge that Laserfiche Software and Documentation may be subject to applicable U.S. and international import and export restrictions, including restrictions imposed by t he U.S. Export Administration Regulations as well as end -user, end -use and destination restrictions issued by the U.S. government and the governments of other nations.

You agree to comply with all applicable national and international laws that apply to t he transport of the Software across national borders or to its use in any such jurisdiction.

18.7 Notices. Should you have any questions concerning this EULA, or if you desire to contact Laserfiche for any reason, please write to either: Laserfiche, 3545 Long Beach Blvd., Long Beach, CA 90807, U.S.A. or [email protected].

18.8 Governing Law, Arbitration, Jurisdiction and Venue. If you acquired Laserfiche Software in a country or territory listed below, this table identifies your Laserfiche “ Licensor,” the law that governs the EULA and the specific arbitration venue that have exclusive jurisdiction over any claim arising under this EULA. Except as otherwise specified below, y ou and your Licensor agree to arbitrate any and all disputes in any way related to this EULA by final and binding arbitration as set forth below. You further waive the right to bring a class action against Laserfiche, or to serve as a representative of a class in a class action against Laserfiche, whether in arbitration or in court. This EULA will not be governed by the following, the application of which is hereby expressly excluded: (x) the conflict of law rules of any jurisdiction, (y) the United Nations Convention on Contracts for the International Sale of Goods, and (z) the Uniform Computer Information Transactions Act, as enacted in any jurisdiction. All arbitration proceedings will be held and a transcribed record prepared in E nglish. The number of arbitrators shall be 1. The seat, or legal place, of arbitration shall be as indicated below. The award rendered by the arbitrator shall include costs of arbitration, reasonable attorney’s fees and reasonable costs for expert and ot her witnesses, and judgment on such award may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing nothing in this Addendum will be deemed to prevent Laserfiche/Licensor from seeking injunctive relief (or any other provisional remedy) from any court of competent jurisdiction as necessary to protect its rights pursuant to this EULA. The prevailing party in any suit will recover its reasonable attorney's fees and costs, including expert costs, from the other party.

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10 Licensor Country or Territory Governing Law Arbitration Compulink Management
Center, Inc.
3545 Long Beach Blvd.

Long Beach, CA 90807 USA
United States and its
territories, Latin
America (except
Mexico), or the
Caribbean
State of
California,
United States of
America
The arbitration will be
heard at JAMS offices in
Los Angeles County,
California in accordance
with JAMS' Streamlined
Arbitration Rules and
Procedures in effect at
the time of the
arbitration.

Laserfiche Strategic Services
Canada Corporation
306, 1 Valleybrook Drive, North
York, Toronto, Ontario M3B2S7
CANADA
Canada State of
California,
United States of
America
The arbitration will be
heard at JAMS offices in
Los Angeles County,
California in accordance
with JAMS' Streamlined
Arbitration Rules and
Procedures in effect at
the time of the
arbitration.

Laserfiche Solutions Mexico, S.
de R.L. De C.V.

Av. Patria 2085
Piso Mezzanine
Colonia Puerta de Hierro
Zapopan, Jalisco 45116 MEXICO
Mexico (After
6/2018)
State of
California,
United States of
America
The arbitration will be
heard at JAMS offices in
Los Angeles County,
California in accordance
with JAMS' Streamlined
Arbitration Rules and
Procedures in effect at
the time of the
arbitration.

Laserfiche International
Limited
2307, Westlands Centre, 20
Westlands Road, Quarry Bay,

HONG KONG
Asia and Australia
(and Mexico prior to
6/2018)
Hong Kong The arbitration will be
heard at the Hong Kong
International
Arbitration Centre in
accordance with its
Domestic Arbitration
Rules in effect at the
time of the arbitration.

Laserfiche UK Services Ltd
Unit 15B, Building 6, Croxley
green Business Park, Hatters
Lane, Watford WD18 8YH

UNITED KINGDOM
United Kingdom,
European Union, and
Eastern Europe
Laws of England
and Wales
The arbitration will be
heard in London, United
Kingdom at the London
International
Arbitration Centre in
accordance with its
rules in effect at the
time of the arbitration.

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11 Licensor Country or Territory Governing Law Arbitration Compulink Management
Center, Inc.
3545 Long Beach Blvd.

Long Beach, CA 90807 USA
All other countries or
territories
State of
California,
United States of
America
The arbitration will be
heard at JAMS offices in
Los Angeles County,
California in accordance
with JAMS' Streamlined
Arbitration Rules and
Procedures in effect at
the time of the
arbitration.

18.9 Legal Effect. This EULA describes certain legal rights. You may have other rights under the laws of your state or country. This EULA does not change your rights under the laws of your state or country if the laws of your state or country do not permit it to do so.

18.10 Assignment. Neither this EULA, nor the rights or obligations arising under this EULA, are assignable by you, and any such attempted assignment or transfer shall be void and without effect. We may assign or transfer this Agreement without your consent.

18.11 Construction. The headings of Sections of this EULA are for convenience and are not to be used in interpreting this EULA. As used in this EULA, the word “including” means “including but not limited to.” You agree that this EULA will not be construed against Laserfiche by virtue of having drafted them. The official text of this EULA (and any License Requisition, Addendum, or notice submitted hereunder) will be in English. The parties acknowledge that they require that this Agreement be drawn up in the English language only. Les parties reconnaissent qu’elles ont exigé que la présente convention soit rédigée en language anglaise seulement. In the event of any dispute concerning the construction or meaning of this Agreement, reference will be made only to this Agreement as written in English and not to any translation into another language.

* * * * *

October 2018.

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City of Hemet Resolution No. 2023-xxx

CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2023-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF HEMET, CALIFORNIA, APPROVING AN

AGREEMENT FOR SERVICES WITH ECS
IMAGING, INC. FOR ADDITIONAL SUBSCRIPTION

LICENSES, PUBLIC PORTAL UPGRADES, AND

OTHER IMPROVEMENTS TO THE CITY'S

LASERFICHE DOCUMENT REPOSITORY SYSTEM
FOR THE AMOUNT OF $62,995, AND AUTHORIZE

THE CITY MANAGER TO EXECUTE THE

AGREEMENT AND PURCHASE ORDERS IN

SUPPORT OF THE AGREEMENT
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City of Hemet adopted the allocated
Twenty-One Million, Six Hundred Seventy-Four Thousand, Three Hundred and Forty-Four dollars ($21,674,344) from the American Rescue Plan Act’s (ARPA) Coronavirus State & local Fiscal Recovery Funds (SLFRF).

WHEREAS, of the adopted Twenty-One Million, Six Hundred Seventy-Four Thousand, Three Hundred and Forty-Four dollars ($21,674,344), One-Hundred Twelve Thousand, Four-Hundred and Ninety-One dollars ($112,491) were allocated for the City Clerk's Department’s “Records Management System.”

13.C

City of Hemet Resolution No. 2023-xxx
WHEREAS, one aspect of the “Records Management
System” is the upgrade to the City’s existing Laserfiche document repository system.

WHEREAS, through the upgrade of the City’s existing
Laserfiche system, the maintenance, storage, and access to vital records will be improved through the addition of the following:

1. An increase in the number of
subscription participants to
access documents internally and
externally. City Departments will
be able to utilize LaserFiche with
the additional licenses
purchased. Members of the
public will be able to access
documents through the public
portal, ultimately reducing
requests for records and staff
time dedicated to those requests.

2. Acquisition of LaserFiche Forms
Portal Add-on, allowing forms to
be processed and stored will
increase efficiency in processing
requests in the Human
Resources Division.

13.C

City of Hemet Resolution No. 2023-xxx

3. ArcGIS integration will also be
configured in the weblink portal,
making documents accessible to
the public via the map portal.

WHEREAS, through the aforementioned upgrades, daily
operations will be made more efficient through the reduction in the number of requests the City Clerk's Department receives for records, both from the public and within the organization.

WHEREAS, staff is recommending the approval of the
upgrade to the City’s existing Laserfiche document repository system through ECS Imaging, Inc.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY

OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES
AS FOLLOWS:

SECTION 1.The above recitals are all true and correct.

SECTION 2. Approve an Agreement with ECS Imaging, Inc.
for Additional Subscription Licenses, Public Portal Upgrades, and Other Improvements to the City's Laserfiche Document Repository System for the Amount of $62,995; and,
SECTION 3. Authorize the City Manager to Execute the
Agreement, Purchase Orders, and any documents in Support of the Agreement
SECTION 4. This Resolution shall take effect upon its
adoption.

13.C

City of Hemet Resolution No. 2023-xxx
PASSED, APPROVED AND ADOPTED this 14th day of
February, 2023.
____________________________
Joe Males, Mayor
ATTEST:
_____________________________
John Paul Maier, City Clerk

13.C

City of Hemet Resolution No. 2023-xxx
State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 14th day of February, 2023, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members: None.

ABSTAIN: Council Members: None.

ABSENT: Council Members: None.
_____________________________
John Paul Maier, City Clerk

13.C

13.C

DESaafeartissavices
April18,2019
GovernorGavinNewsom
Ms.DebbiBodewinECSImaging,Inc.5905BrocktonAvenue,Suite0Riverside,CA92506 Subject:ECSImaging,lnc.’sCaliforniaMultipleAwardSchedule(CMAS) CMASNumber: 3-19-70-2982CCMASTermDates: April18,2019throughDecember10,2023BaseGSAScheduleNo.:GS-35F-0118V TheStateofCaliforniaispleasedtoacceptyourfirm’soffertoestablishaCaliforniaMultipleAwardSchedule(CMAS),whichwehaveassignedtheCMASnumberandtermdatesidentifiedabove.ThisCMASnumbermustbeshownoneachinvoicerendered.Additionally,thislettershallnotbeconstruedasacommitmenttopurchaseanyoralloftheState'srequirementsfromyourfirm.PriorapprovalisrequiredfromtheStateforallnewsreleasesregardingthisCMAS.Itisyourfirm'sresponsibilitytofurnish,uponrequest,acopyofthisCMAStoStateandlocalgovernmentagencies.AcopyofthisCMAScanbeobtainedatcalegrocure.ca.gov.AcompleteCMASconsistsofthefollowing:1)CMAScoverpages(whichincludesthesignaturepage,orderinginstructionsandspecialprovisions,andanyattachmentsorexhibitsaspreparedbytheCMASUnit),2)CMAStermsandconditions,3)FederalGSA(orNon—GSA)termsandconditions,and4)product/servicelistingandprices.TheCMASUnitstronglyrecommendsthatqovernmentagenciesplaceorderswithCMAScontractorswhoprovideALLoftheelementsdescribedabove.

TomanagethisCMAS,contractorsaredirectedtothe“CMASManagementandInformationGuide”,whichcanbeaccessedathttps://www.dqs.ca.qov/PD/AboutlPaqe-Content/PD—Branch—lntro-Accordion-List/Acguisitions/Californla-Multigle-Award-Schedules.ThisguidecoverstopicssuchasCMASQuarterlyReports,amendments,extensions,renewals,CMAScontractor’schangeincontactinformation,companynamechangerequests,andmarketingyourCMAS.

ItistheCMAScontractor'sresponsibilitytosubmitonatimelybasisdetailedCMASQuarterlyReports(alongwithanyapplicableincentivefees).

THENEXTQUARTERLYREPORTDUEFORTHISCMASISQ2-2019(APR-JUN)DUEBYJUL152019.

The"ApprovedCMASContractor"logoisonlyavailabletoCMASholdersfordisplayatconferencesoronothermarketingmaterial.Aloginandpasswordisrequiredtodownloadthelogo.Gotohttps://wvvw.dqs.ca.qov/PD/Sewices/Page-Content/Procurement-Division-Services—List—Folder/Applv—for-a—California-Multile-Award—Schedules,thenselect“ApplytobecomeaCMASsupplier”;clickon“CMASLogos”undertheheading“Resources".Attheprompt,enterthelogin:“cmassupplier”andthepassword:"cmas0‘l0194”.

ShouldyouhaveanyquestionsregardingthisCMAS,pleasecontactmeat(916)375-4391.ThankyouforyourcontinuedcorationandsupportoftheCMASProgram.

BRY ANGGER,Pr AnalystCaliforniaMultipleAwardSchedulesUnit PROCUREMENTDIVISIONlStateofCalifornialGovernmentOperationsAgency707ThirdStreet.2ndFloorlWesiscicrumenfo.CA95éO5ll9ié.375.4365i9i6.375.z!é63

13.C

13.C

, - ProcurementDivisionCAl.lI»OF?NlAD:PAPTt/IENTOF 707ThirdStreet,2"“Floor,MS#2-202GENERALSERVICES wes1sac,amemo.cA95505.23“ StateofCaliforniaMULTIPLEAW ARDSCHEDULEECSImaging,Inc.CMASNUMBER:3-19-70-2982CCMASTERMDATES:4/18/2019through12/10/2023CMASCATEGORY:InformationTechnologyGoods&ServicesAPPLICABLETERMS&CONDITIONS:Mm“15’2°18 StateAgencies:SeePurchasingMAXIMUMORDERLIMIT:AuthorityDollarThresholdprovisionLocalGovernmentAgencies:UnlimitedFORUSEBY: State&LocalGovernmentAgenciesBASEGSASCHEDULENO.:GS-35F-O118VBASESCHEDULEHOLDER:ProfessionalDocumentSystems ThisCMASprovidesforthepurchaseandwarrantyofsoftwareandsoftwaremaintenanceasaproduct.(Seepage2forthespecificbrandandrestrictionsapplicabletothisCMAS.) NOTICE:Productsand/orservicesonthisCMASmaybeavailableonaMandatoryStatewideContracts.Ifthisisthecase,theuseofthisCMASisrestrictedunlesstheStateagencyhasanapprovedexemptionasexplainedintheStatewideContractUserInstructions.InformationregardingStatewideContractscanbeobtainedatthewebsite:wvvw.documents.dgs.ca.gov/pd/contracts/contractindexlisting.Qdf.Thisrequirementisnotapplicabletolocalgovernmententities.

TheservicesprovidedunderthisCMASareonlyinsupportoftheproductscoveredbythisCMAS.

ThemostcurrentOrderingInstructionsandSpecialProvisions,CMASTermsandConditions,andproductsand/orservicesareincludedherein.AllpurchaseordersissuedbyStateagenciesunderthisCMASshallincorporatetheseOrderingInstructionsandSpecialProvisionsandCMASTermsandConditionsdatedMarch15,2018.Agencynon—comp|iancewiththerequirementsofthisCMASmayresultinthelossofdelegatedauthoritytousetheCMASprogram.

CMAScontractornon—comp|iancewiththerequirementsofthisCMASmayresultinterminationoftheCMAS. 67» EffectiveDate:4/18/2019BRY AN’DUGGER,rogramAnalyst,CaliforniaMultipleAwardSchedulesUnit

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-2982C CMASPRODUCT8-SERVICECODES
TheCMASProduct&ServiceCodeslistedbelowareformarketingpurposesonly.ReviewthisCMASandthebasecontractidenti?edbelowfortheproductsand/orservicesavailableonthisCMAS.Brand-Laser?cheSoftwareSoftware-«ApplicationSoftware-DocumentimagingSoftware-DocumentintegrationSoftware-DocumentMgmtSoftware—|mageManagementSoftware-InformationRetrievalSoftware-OCRSoftware—ProcessMgtToolA V AILABLEPRODUCTSAND/ORSERVICES Onlyproductsfromthemanufacturer(s)listedbelowareavailablewithinthescopeofthisCMAS:

Laser?che
Theorderingagencymustverifyallproductsand/orservicesarecurrentlyavailableonthebaseGSAscheduleattheGSAeLibrary.AccesstheGSAeLibraryatwww.gsae|ibrag.gsa.gov.

EXCLUDEDPRODUCTSAND/ORSERVICES
Hardware,hardwaremaintenanceandrepair,softwaremaintenanceasaservice,trainingcourses,andorder-levelmaterialsaren_otavailableunderthisCMAS.

CMASBASECONTRACTThisCMASisbasedonsomeoralloftheproductsand/orservicesandpricesfromGSAScheduleNo.GS-35F-0118V(PROFESSIONALDOCUMENTSYSTEMS)withaGSAtermof12/11/2018through12/10/2023.Replace“ProfessionalDocumentSystems”with“ECSImaging,Inc."where“ProfessionalDocumentSystems"isreferencedinthefederalGSAmultipleawardContractTermsandConditions.

ISSUEPURCHASEORDERTO
Agencypurchaseordersmustbeeithermailed,faxed,oremailedtothefollowing:

ECSImaging,Inc.5905BrocktonAvenue,SuiteCRiverside,CA92506Attn:Accounting Fax:(951)787-0831E-mail:[email protected]
OrderingInstructionsandSpecialProvisions
Agencieswithquestionsregardingproductsand/orservicesmaycontacttheCMAScontractorasfollows:

Contact:DebbiBodewinPhone:(951)787-8768ext.109E-mail:[email protected] CMASPRICESThemaximumpricesallowedfortheproductsand/orservicesavailableinthisCMASarethosesetforthinthebasecontractidenti?edonpage2ofthisCMAS.

TheorderingagencyisencouragedtoseekpriceslowerthanthoseonthisCMAS.Whenrespondingtoanagency'sRequestforOffer(RFO),theCMAScontractorcanofferlowerpricestobecompetitive.PRICEDISCOUNTS ThisCMAScontainssigni?cantpricediscountsoffthemanufacturer’slistprice.SeethebaseGSAscheduleforthespeci?cpercentofdiscount.

W ARRANTY
Forwarranties,seethefederal_GSAscheduleandtheCMASTen'nsandConditions,GeneralProvisions,CMASWarranty.

DELIVERY
30daysafterreceiptoforder,orasnegotiatedbetweenagencyandCMAScontractorandincludedinthepurchaseorder,orasotherwisestipulatedinthecontract.

SHIPPINGINSTRUCTIONS
F.O,B.(FreeOnBoard)Destination.Sellerpaysthefreightcharges.

PURCHASINGAUTHORITYDOLLARTHRESHOLD
Unlessotherwisedeterminedbyinindividualorderingagencypurchasingauthority,orderlimitsforthepurchaseofgoodsand/orservicesis:lnforrnationTechnologyGoodsandServices:$500,000 NoCMASordermaybeexecutedbyaStateagencythatexceedsthatagency'spurchasingauthoritythreshold.Stateagencieswithapprovedpurchasingauthority,alongwiththeirdollarthresholdscanbeobtainedat:https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Divislon—Resources—List-Folder/List—of-State-Deg’artrnents-wi?1-ApQroved-Purchasing-Authority.

13.C

CALIFORNIAMULT|PLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-2982CHOWTOUSECMAS AgenciesmustadheretothedetailedrequirementsintheStateContractingManual(SCM)whenusingCMAS.TherequirementsforthefollowingbulletsareintheSCM,V olume2,Chapter6(fornon-IT),theSCM,V olume3,Chapter6(forIT),andtheSCM,V olumeF|$Cal,Chapter5(F|$Cal):
o DevelopaRequestforOffer,whichincludesaScopeofWork(SOW),andBidderDeclarationfonn.ForinfonnationontheBidderDeclarationrequirements,seetheSCM,V olume2,Section3.5.7andV olume3,Section3.4.7.-SearchforpotentialCMAScontractorsathttps://www.dgs.caJgov/PD/AboutlPage-ContentIPD-Branch-lntro-Accordion-List/AcguisitionsICa|ifomia—Mu|tip|e-Award-Schedules,select“FindaCMASContractor.”- Solicitoffersfromaminimumof3CMAScontractorsIncludingonesmallbusinessand/orDVBE,ifavailable,whoareauthorizedtoselltheproductsand/orservicesneeded.a Ifsolicitingoffersfromacerti?edDVBE,includetheDisabledVeteranBusinessEnterpriseDeclarationsfonn(Std.843)intheRequestforOffer.ThisdeclarationmustbecompletedandreturnedbytheDVBEprimecontractorandloranyDVBEsubcontractors.(SeetheSCMV olumes2,3,andF|$Ca|,Chapter3).o Thisisnotabidtransaction,sothesmallbusinesspreference,DVBEincentives,protestlanguage,intentstoaward,evaluationcriteria,advertising,etc.,arenotapplicable.- Iflessthan3offersarereceived,Stateagenciesmustdocumenttheir?lewiththereasonswhytheothersupplierssoliciteddidnotrespondwithanoffer.- Assesstheoffersreceivedusingbestvaluemethodology,withcostasoneofthecriteria.- IssueaPurchaseOrdertotheselectedCMAScontractor. - o ForCMAStransactionsunder$10,000,onlyoneofferisrequirediftheStateagencycanestablishanddocumentthatthepriceisfairandreasonable.Thefairandreasonablemethodcanonlybeusedfornon—customizablepurchases.Localgovernmentssettheirownorderlimits,andarenotboundbytheorderlimitsonthecoverpageofthisCMAS.

SPLITTINGORDERS
Splittingorderstoavoidanymonetarylimitationsisprohibited.Donotcircumventnormalprocurementmethodsbysplittingpurchasesintoaseriesofdelegatedpurchaseorders,perPublicContractCode(PCC)§10329.

OrderingInstructionsandSpecialProvisions
Splittingaprojectintosmallprojectstoavoideither?scalorproceduralcontrolsisprohibited,perStateAdministrativeManual(SAM)§4819.34.

MINIMUMORDERLIMITATION
ThereisnominimumdollarvaluelimitationonordersplacedunderthisCMAS.

ORDERINGPROCEDURES

1.PurchaseOrders
AllOrderingAgencypurchaseorderdocumentsexecutedunderthisCMASmustcontaintheapplicableCMASnumberasshowonpage1.1.StateDepartments:

Std.65PurchaseDocuments— StatedepartmentsnottransactinginFl$CalmustusethePurchasingAuthorityPurchaseOrder(Std.65)forpurchaseexecution.AnelectronicversionoftheStd.65isavailableattheDGS—PD website athttps://www.dgsapgs.dgs.ca.gov/osp/StatewideForrnsweb/Forrnsaspx(selectStandardSTDForms).

FlCalPurchaseDocuments— StatedepartmentstransactinginFl$Ca|willfollowtheFl$Ca|procurementandcontractingprocedures.

2.LocalGovernmentalDepartments:

Localgovernmentalagenciesmayusetheirownpurchasedocumentforpurchaseexecution.Theagencyisrequiredtocompleteanddistributethepurchaseorder.Forservices,theagencyshallmodifytheinfonnationcontainedontheordertoincludetheserviceperiod(startandenddate),andthemonthlycost(orotherintermittentcost),andanyotherinformationpertinenttotheservicesbeingprovided.Thecostforeachlineitemshouldbeincludedintheorder,notjustsystemtotals.Thecontractormustimmediatelyrejectpurchaseordersthatarenotaccurate.‘Discrepanciesaretobenegotiatedandincorporatedintothepurchaseorderpriortotheproductsandservicesbeingdelivered.

2.ServiceandDeliveryafterCMASExpiration
ThepurchaseordermustbeissuedbeforetheCMASexpires.However,deliveryoftheproductsorcompletionoftheservicesmaybeaftertheCMASexpires(unlessotherwisespeci?callystatedinthepurchaseorder).

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-2982C

3.MultipleCMASAgreementsona SinglePurchaseOrder
AgencieswishingtoincludemultipleCMAS(s)onasingleFl$Ca|purchaseordermustadheretothefollowingguidelines:
- AllCMASmustbeforthesameCMAScontractor.-Thepurchaseordermustgotoonecontractorlocation.-Writetheword“CMAS”inthespaceusuallyreservedforthecontractnumber.OnStd.65's,thisisatthetopofthefonn.Theword“CMAS”signi?esthatthepurchaseordercontainsitemsfrommultipleCMASagreements.Thepurchasingagencymayonlyuseonebillcode.-ForeachindividualCMAS(asdifferentiatedbyalphasuf?x),theagencymustidentifyandgrouptogethertheCMASnumberwiththelineitemsandsubtotalperCMASnumber(donotincludetaxinthesubtotal),andsequentiallyidentifyeachindividualCMASasSub#1,Sub#2,Sub#3,etc.ThisfacilitatesaccuratebillingofadministrativefeesbytheProcurementDivision.-Thetotalofallitemsonthepurchaseordermustnotexceedthepurchaseorderlimitidenti?edintheCMAS.-Donotcombineitemsfrombothnon-ITandlnforrnationTechnologyCMAS(s).Anon-ITCMASbeginwiththenumber“4"andanlnfonnationTechnologyCMASbeginswiththenumber"3."ThepurchaseorderlimitsaredifferentforthesetwotypesofCMASagreements.

4.AmendmentstoAgency'sPurchaseOrders
AgencypurchaseorderscannotbeamendediftheCMAShasexpired.

TheSCM,V olumes2&3,Chapter6.A5.0andSCM,V olumeFl$Cal,Chapter5.A4.0providesthefollowingdirectionregardingamendmentstoalltypesofCMASpurchaseorders:

Originalorders,whichincludeoptionsforchanges(e.g.,quantityortime),thatwereevaluatedandconsideredintheselectionforawardduringtheRFOprocess,maybeamendedconsistentwiththetennsoftheoriginalorder,providedthattheoriginalorderallowedforamendments.Iftheoriginalorderdidnotevaluateoptions,thenamendmentsarenotallowedunlessanNCBisapprovedforthoseamendments.

OrderinginstructionsandSpecialProvisions
Amendmentsuniquetonon-ITservicesarecoveredintheSCM,V olume2,Chapter6.32.9andSCM,V olumeF|$Cal,Chapter5.A4.1asfollows:

Iftheoriginalcontractpermittedamendments,butdidnotspecifythechanges(e.g.,quantityortime),itmaybeamended,perPublicContractCode(PCC)§10335(d)(1).Thisonlyappliestothe?rstamendment.Thetimeshallnotexceedoneyear,oraddnotmorethan30%oftheoriginalordervalueandmaynotexceed$250,000.Iftheoriginalcontractdidnothavelanguagepermittingamendments,theNCBprocessmustbefollowed.

Also,seetheSCM,V olumes2&3,Chapter8,Topic6,formoreinforrnatlononamendingpurchaseorders.

CMASCONTRACTOROWNERSHIPINFORMATION
ECSImaging,inc.isacerti?edsmallbusinessenterprise.TheirOf?ceofSmallBusinessandDVBEServices(OSDS)certi?cation#1041458expireson6/30/2020. ifthiscerti?cationhasexpired,thecurrentexpirationdateforthiscompany’scerti?cationshouldbeveri?edat:caleprocure.ca.gov/pages?ndexaspxorbycontactingtheOf?ceofSma|lBusinessandDVBEServicesat(916)375-4940.Notethatsomecompanieshavebeenassignedanewcerti?cationnumber,sousethecompanynameand/orcerti?cationnumberwhencheckingstatuson-line.SMALLBUSINESSMUSTBECONSIDERED PriortoplacingordersundertheCMASprogram,Stateagenciesshallwheneverpracticable?rstconsideroffersfromsmallbusinessesmathaveestablishedCMAS[GovernmentCode(GC)§14846(b)].NOTE:TheDepartmentofGeneralServicesauditorswillrequestsubstantiationofcompliancewiththisrequirementwhenagency?lesarereviewed.

ThefollowingwebsitelistsCMASsmallbusinessandDisabled Veteran Partners:httgs://www.dgs.ca.gov/PD/About/Page—ContentJPD—Branch-lntro-Accordion-LisfJAguisitions/Ca|ifomia—Multiple-Award-Schedulesthenselect"FindaCMASContractor".

Inresponsetoourcommitmenttoincreaseparticipationbysmallbusinesses,theDepartmentofGeneralServiceswaivestheadministrativefee(afeecurrentlychargedtocustomeragenciestosupporttheCMASprogram)fororderstocerti?edsmallbusinessenterprises.SeethecurrentfeesintheDGSPriceBookat:https://www.dgs.ca.gov/OFS/Price—Book.

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASN0.3-19-70-2982CSMALLBUSINESS/DVBE-TRACKING Stateagenciesareabletoclaimsubcontrac?ngdollarstowardstheirsmallbusinessorDVBEgoalswhenevertheCMAScontractorsubcontractsacommerciallyusefulfunctiontoacerti?edsmallbusinessorDVBE.TheCMAScontractorwillprovidetheorderingagencywiththenameofthesmallbusinessorDVBEusedandthedollaramounttheorderingagencycanapplytowardsitssmallbusinessorDVBEgoal.SMALLBUSINESS/DVBE-SUBCONTRACTING1.TheamountanorderingagencycanclaimtowardsachievingitssmallbusinessorDVBEgoalsisthedollaramountofthesubcontractawardmadebytheCMAScontractortoeachsmallbusinessorDVBE.2.TheCMAScontractorwillprovideanorderingagencywiththefollowinginformationatthetimetheorderisquoted:
a.TheCMAScontractorwillstatethat,astheprimecontractor,itshallberesponsiblefortheoverallexecutionoftheful?llmentoftheorder.b.TheCMAScontractorwillindicatetotheorderingagencyhowtheordermeetsthesmallbusinessorDVBEgoal,asfollows:
a Listthenameofeachcompanythatiscerti?edbytheOfficeofSmallBusinessandDVBEServicesthatitintendstosubcontractacommerciallyusefulfunctionto;and-includethesmallbusinessorDVBEcerti?cationnumberofeachcompanylisted,andattachacopyofeachcerti?cation;and- indicatethedollaramountofeachsubcontractwithasmallbusinessorDVBEthatmaybeclaimedbytheorderingagencytowardsthesmallbusinessorDVBEgoal;and- IndicatewhatcommerciallyusefulfunctionthesmallbusinessorDVBEsubcontractorwillbeprovidingtowardsful?llmentoftheorder.

8.Theorderingagency'spurchaseordermustbeaddressedtotheprimeContractor,andthepurchaseordermustreferencetheinformationprovidedbytheprimeContractorasoutlinedabove.

SPECIALMANUFACTUREDGOODS
AnyCMASforgoodstobemanufacturedbytheCMAScontractorspeci?callyfortheStateandnotsuitableforsaletoothersmayrequireprogresspayments.

PRODUCTIVEUSEREQUIREMENTS
Thecustomerin-userequirementappliestoallprocurementsofinformationtechnologyequipmentandsoftware,pertheSCM,V olume3,Chapter2,Section2.B6.2andSCM,V olumeFl$Ca|,Chapter2,Section2.E3.2.

OrderinginstructionsandSpecialProvisions
Eachequipmentorsoftwarecomponentmustbeincurrentoperationforapayingcustomerandthepayingcustomermustbeexternaltothecontractor'sorganization(notownedbythecontractorandnotowningthecontractor).TosubstantiatecompliancewiththeProductiveUseRequirements,theCMAScontractormustprovideuponrequestthenameandaddressofacustomerinstallationandthenameandtelephonenumberofacontactperson.Theelapsedtimesuchequipmentorsoftwaremusthavebeeninoperationisbasedupontheimportanceoftheequipmentorsoftwareforsystemoperationanditscost.ThefollowingdesignatesproductcategoriesandtherequiredperiodoftimeforequipmentorsoftwareoperationpriortoapprovalofthereplacementitemonCMAS.

Category1- CriticalSoftware:Criticalsoftwareissoftwarethatisrequiredtocontroltheoveralloperationofacomputersystemorperipheralequipment.Includedinthiscategoryareoperatingsystems,databasemanagementsystems,languageinterpreters,assemblersandcompilers,communicationssoftware,andotheressentialsystemsoftware.

Cost Installations nMorethan 6months8months$100,000$10,000upto 4 th 3months$100,000"‘°"3 Lessthan 1month1month$10,000Category2-AllInformationTechnologyEquipmentandNon-CriticalSoftware:lnforrnationtechnologyequipmentisde?nedinStateAdministrativeManual(SAM)§4819.2. . FinalBidE SubmissionMorethan 4months6months$100,000$10,000upto 4 h 3months$100,000"‘°"‘5 Lessthan 1month1month$10,000

OPENMARKET/INCIDENTALNON-SCHEDULEITEMS
Theonlytimethatopenmarket/incidental,non—scheduleitemsmaybeincludedinaCMASorderiswhentheyfallundertheparametersoftheNotSpeci?callyPriced(NSP)Itemsprovision‘iftheNSPprovisionisnotincludedintheCMAS,ortheproductsand/orservicesrequireddonotqualifyundertheparametersoftheNSPprovision,theproductsand/orservicesmustbeprocuredseparatefromCMAS.

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-2982C

NOTSPECIFICALLYPRICED(NSP)ITEMS
TheNSPprovisionisnotapplicabletothisCMAS.

STATEANDLOCALGOVERNMENTSCANUSECMAS
StateandlocalgovernmentagencyuseofCMASisoptional.Alocalgovernmentisanycity,county,cityandcounty,district,orotherlocalgovernmentalbodyorcorporation,includingUC,CSU,K-12schoolsandcommunitycollegesempoweredtoexpendpublicfunds.WhiletheStatemakesthisCMASavailable,eachlocalgovernmentagencyshouldmakeitsowndeterminationwhethertheCMASprogramisconsistentwiththeirprocurementpoliciesandregulations.

UPDATESAND/ORCHANGES
ACMASamendmentisnotrequiredforupdatesand/orchangesoncemeupdateand/orchangebecomeseffectiveforthefederalGSAschedule,exceptasfollows:
a ACMASamendmentisrequiredwhentheCMASisbasedonspeci?cproductsand/orservicesfromanothercontractorsmultipleawardcontractandthecontractorwantstoaddanewmanufacturer'sproductsand/orservices.c ACMASamendmentisrequiredfornewfederalcontracttennsandconditionsthatconstituteamaterialdifferencefromexistingcontracttermsandconditions.Amaterialchangehasapotentiallysigni?canteffectonthedelivery,quantityorqualityofitemsprovided,theamountpaidtothecontractororonthecosttotheState.

ACMASamendmentisrequiredtoupdateand/orchangetermsandconditionsand/orproductsandservicesbasedonanon-federalGSAmultipleawardcontract.SELF-DELETINGFEDERALGSATERMSANDCONDITIONS instructions,ortermsandconditionsthatappearintheSpecialItemsorotherprovisionsofthefederalGSAandapplytothepurchase,license,orrental(asapplicable)ofproductsorservicesbytheU.S.GovernmentintheUnitedStates,and/ortoanyoverseaslocationshallbese|f—deleting.(Example:"ExaminationsofRecords"provision).

Federalregulationsandstandards,suchasFederalAcquisitionRegulation(FAR),FederalInformationResourcesManagementRegulation(FIRMR),FederalInformationProcessingStandards(FIPS),GeneralServicesAdministrationRegulation(GSAR),orFederalInstallmentPaymentAgreement(FIPA)shallbeself-deleting.Federalblanketordersandsmallordeproceduresarenotapplicable. - OrderingInstructionsandSpecialProvisions

ORDEROFPRECEDENCE
TheCMASTennsandConditionstakesprecedenceifthereisacon?ictbetweenthetermsandconditionsofthecontractorsfederalGSA,(orothermultipleawardcontract),packaging,invoices,catalogs,brochures,technicaldatasheetsorotherdocuments(seeCMASTermsandConditions,CONFLICTOFTERMS).

APPLICABLECODES,POLICIESANDGUIDELINES
AllCalifomiacodes,policies,andguidelinesareapplicable.THEUSEOFCMASDOESNOTREDUCEORRELIEVESTATEAGENCIESOFTHEIRRESPONSIBILITYTOMEETSTATEWIDEREQUIREMENTSREGARDINGCONTRACTINGORTHEPROCUREMENTOFGOODSORSERVICES.Mostprocurementandcontractcodes,policies.andguidelinesareincorporatedintoCMASagreements.Nonetheless,thereisnoguaranteethateverypossiblerequirementthatpertainstoallthedifferentanduniqueStateprocesseshasbeenincluded.PAYMENTSANDINVOICES

1.PaymentTerms
PaymenttermsforthisCMASarenet45days.

PaymentwillbemadeinaccordancewiththeprovisionsoftheCaliforniaPromptPaymentAct,GovernmentCode(GC)§927et.seq.Unlessexpresslyexemptedbystatute,theActrequiresStateagenciestopaypropertysubmitted,undisputedinvoicesnotmorethan45daysafter(i)thedateofacceptanceofgoodsorperformanceofservices;or(ii)receiptofanundisputedinvoice,whicheverislater.

2.PayeeDataRecord(Std.204)
StateAgenciesnottransactinginFl$Ca|,mustobtainacopyofthePayeeDataRecord(Std.204)inordertoprocesspayments.StateOrderingAgenciesforwardacopyoftheStd.204totheiraccountingof?ce(s).WithouttheStd.204,paymentmaybeunnecessarilydelayed.StateAgenciesshouldcontacttheCMAScontractorforcopiesofthePayeeDataRecord.

3.DGSAdministrativeandIncentiveFees
OrdersfromStateAgencies:

TheDepartmentofGeneralServices(DGS)willbilleachStateagencydirectlyanadministrativefeeforuseofCMAS.TheadministrativefeeshouldNOTbeincludedintheordertotal,norremittedbeforeaninvoiceisreceivedfromDGS.ThisadministrativefeeiswaivedforCMASpurchaseordersissuedtoCaliforniacerti?edsmallbusinesses.

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-2982CSeethecurrentadministrativefeesintheDGSPriceBookat:https://www.dgs.ca.gov/OFS/Price-Book.

OrdersfromLocalGovernmentAgencies:

CMAScontractors,whoarenotCaliforniacerti?edsmallbusinesses,arerequiredtoremittotheDGSanincentivefeeequalto1%ofthetotalofalllocalgovernmentagencyorders(excludingsalestaxandfreight)placedagainsttheirCMAS.ThisincentivefeeisinlieuoflocalgovernmentagenciesbeingbilledtheabovereferencedDGSadministrativefee.

ThisincentivefeeiswaivedforCMASpurchaseordersissuedtoCaiifomiacerti?edsmallbusinesses.

ThecheckcoveringthisfeeshallbemadepayabletotheDepartmentofGeneralServices,CMASUnit,andmailedtotheCMASUnitalongwiththeapplicableQuarterlyReport.SeetheprovisioninthisCMASentitled“ContractorQuarterlyReportProcess”forinfonnationonwhenandwheretosendthesechecksandreports.

4.ContractorInvoices
Unlessotherwisestipulated,theCMAScontractormustsendtheirinvoicestotheagencyaddresssetforthinthepurchaseorder.Invoicesshallbesubmittedintriplicateandshallincludethefollowing:

CMASnumberAgencypurchaseordernumberAgencyBillCode(StateOnly)LineitemnumberUnitpriceExtendedlineitempriceInvoicetotal Statesalestaxand/orusetaxshallbeitemizedseparatelyandaddedtoeachinvoiceasapplicable.ThecompanynameontheCMAS,purchaseorderandinvoicemustmatchortheStateController'sOf?cewillnotapprovepayment.

5.AdvancePayments
Advancepaymentisallowedforservicesonlyunderlimited,narrowlyde?nedcircumstances,e.g.,betweenspeci?cdepartmentsandcertaintypesofnon-pro?torganizations,orwhenpayinganothergovernmentagency(GovernmentCode(GC)§11256— 11263and11019).ItisNOTacceptabletopayinadvance,exceptsoftwaremaintenanceandlicensefees,whichareconsideredasubscriptionandmaybepaidinadvanceifaprovisionaddressingpaymentinadvanceisincludedinthepurchaseorder.

OrderingInstructionsandSpecialProvisions
Softwarewarrantyupgradesandextensionsmayalsobepaidforinadvance,onetime,

6.CreditCard
ECSImaging,Inc.doesnotaccepttheStateofCaiifomiacreditcard(CAL—Card).

7.Leasing
TheStatereservestherighttoselecttheformofpaymentforallprocurements,beiteitheranoutrightpurchasewithpaymentrendereddirectlybytheState,ora?nancing/lease—purchaseoroperatingleaseviatheStateFinancialMarketplace(GS$Martand/orLease$Mart).Ifpaymentisviathe?nancialmarketplace,theSupplierwillinvoicetheStateandtheStatewillapprovetheinvoiceandtheselectedLender/LessorforallproductlistedontheState'sprocurementdocumentwillpaythesupplieronbehalfoftheState.

BuyersmaycontacttheGS$Mart""Administrator,PatrickMullenbyphoneat(916)375-4617orviae-mailatQatrick.mullen@dgs.ca.govforfurtherinfonnation.CONTRACTORQUARTERLYREPORTPROCESS CMAScontractorsarerequiredtosubmitadetailedCMASBusinessActivityReportonaquarterlybasistotheCMASUnit.SeeAttachmentBforacopyofthisformandinstructions.Thisreportshallbemailedto:

DepartmentofGeneralServicesProcurementDivision— CMASUnitAttention:QuarteriyReportProcessingPOBox989052,MS#2-202WestSacramento,CA95798-9052 Reportsthatincludechecksforincentivefeesmustbemailedandshallnotbee-mailed.Allotherreportsmaybee-mailedtotheattentionofQuarterlyReportProcessingasfollows:CMASUnitE-Mail:cmas@dgs.ca.govForthefullinstructionsoncompletingandsubmittingCMASQuarterlyBusinessActivityReports,andasoftcopyofablankquartenyreportform,gotohgps://www.dgs.ca.gov/PD/AboutlPage—ContentlPD-Branch-Intro-Accordion—ListlAguisitions/Ca|ifomia-Multiple-Award-Schedules,andthenselect“FileaCMASQuarterlyReport‘.

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-29820 ImportantthingstorememberregardingCMASQuarterlyBusinessActivityReports(referredtoas“reports”below):
- AreportisrequiredforeachCMAS,eachquarter,evenwhennonewpurchaseordersarereceivedinthequarter.AseparatereportisrequiredforeachCMAS.Eachpurchaseordermustbereportedonlyonceinthequarteridenti?edbythepurchaseorderdate,regardlessofwhentheserviceswereperformed,theproductsweredelivered,theinvoicewassent,orthepaymentwasreceived.- PurchaseordersfromStateandlocalgovernmentagenciesmustbeseparatedonthereport,asshownintheinstmctions,o CMAScontractorsmustreportthesalesactivityforallresellerslistedontheirCMAS. 0 AnyreportthatdoesnotfollowtherequiredformatorexcludesrequiredinfonnationwillbedeemedincompleteandreturnedtotheCMAScontractorforcorrections. 0 Taxesandfreightmustnotbeincludedinthereport.- CMAScontractorswhoarenotCaliforniacerti?edsmallbusinessesmustattachtotheirquarterlyreportacheckcoveringtherequiredincentivefeeforallCMASsalestolocalgovernmentagencies(seemoreinformationbelow).- NewCMASagreements,renewals,extensions,andmodi?cationswillbeapprovedonlyiftheCMAScontractorhassubmittedallrequiredquarterlyreportsandincentivefees.

CMASQuartertyBusinessActivityReportsaredueintheCMASUnitwithintwoweeksaftertheendofeachquarterasshownbelow:

Quarter1 Jan1toMar31 DueApr15Quarter2 Apr1toJun30 DueJul15Quarter3 Jul1toSep30 DueOct15Quarter4 Oct1toDec31 DueJan15

CONTRACTORQUARTERLYINCENTIVEFEES
CMAScontractorswhoarenotCaliforniacerti?edsmallbusinessesmustremittoDGSanincentivefeeequalto1%ofthetotalofalllocalgovernmentagencyorders(excludingsalestaxandfreight)placedagainsttheirCMASagreement(s).ThisincentivefeeisinlieuoflocalgovernmentagenciesbeingbilledtheabovereferencedDGSadministrativefee. 'CMAScontractorscannotchargelocalgovernmentagenciesanadditional1%chargeonaseparatelineitemtocovertheincentivefee.TheCMAScontractormustincludethe1%incentivefeeinthepriceoftheproductsorservicesoffered,andthelineitempricesmustnotexceedtheapplicablebasecontractprices.

OrderingInstructionsandSpecialProvisions
Alocalgovernmentagencyisanycity,county,district,orotherlocalgovernmentalbody,includingtheCallfomiaStateUniversity(CSU)andUniversityofCalifornia(UC)systems,K-12publicschoolsandcommunitycollegesempoweredtoexpendpublicfunds.

ThisincentivefeeiswaivedforCMASpurchaseordersissuedtoCallfomiacerti?edsmallbusinesses.

ThecheckcoveringthisfeeshallbemadepayabletotheDepartmentofGeneralServices,CMASUnit,andmailedtotheCMASUnitalongwiththeapplicableQuarterlyReport.SeetheprovisioninthisCMASentitled‘“ContractorQuarterlyReportProcess"forinformationonwhenandwheretosendthesechecksandreports.

OBTAININGCOPYOFORIGINALCMASANDSUPPLEMENTS
AcopyofaCMASandsupplements,ifany,canbeobtainedatca|egrocure.ca.gov.AcompleteCMASconsistsofthefollowing:
- CMAScoverpages(whichincludesthesignaturepage,orderinginstructionsandspecialprovisions,andanyattachmentsorexhibitsaspreparedbytheCMASUnit)CMASTermsandCondi?ons.FederalGSA(orNon-GSA)tennsandconditionsProductlservicelistingandpricesSupplements,ifapplicable.

Itisimportantfortheagencytocon?rmthattherequiredproducts,services,andpricesareincludedintheCMASandareatorbelowbasecontractrates.Tostreamlinesubstantiationthattheneededitemsareinthebasecontract,theagenciesshouldasktheCMAScontractortoidentifythespeci?cpagesfromthebasecontractthatincludetherequiredproducts,services,andprices.Agenciesshouldsavethesepagesfortheir?ledocumentation.CONTRACTORSACTINGASFISCALAGENTSAREPROHIBITED WhenasubcontractorultimatelyprovidesalloftheproductsorperfonnsalloftheservicesthataCMAScontractorhasagreedtoprovide,andtheprimecontractoronlyhandlestheInvoicingofexpenditures,thentheprimecontractor‘srolebecomesthatofa?scalagentbecauseitismerelyadministrativeinnature,anddoesnotprovideaCommerciallyUsefulFunction(CUF).Itisunacceptabletouse?scalagentsinthismannerbecausetheagencyispayingunnecessaryadministrativecosts.

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-29820AGENCYRESPONSIBILITY Eachagencyisresponsibleforitsowncontractingprogramandpurchasingdecisions,includinguseoftheCMASprogramandassociatedoutcomes.

Thisresponsibilityincludes,butisnotnecessarilylimitedto,ensuringthenecessityoftheservices,securingappropriatefunding,complyingwithlawsandpolicies,preparing.thepurchaseorderinamannerthatsafeguardstheState’sinterests,obtainingrequiredapprovals,anddocumentingcompliancewithGovernmentCode(GC)§19130.b(3)foroutsourcingservices.

Itistheresponsibilityofeachagencytoconsultasapplicablewiththeirlegalstaffandcontractingof?cesforadvicedependinguponthescopeorcomplexityofthepurchaseorder.

Ifyoudonothavelegalservicesavailabletoyouwithinyouragency,theDGSOf?ceofLegalServicesisavailabletoprovideservicesonacontractualbasis.CONFLICTOFINTEREST Agenciesmustevaluatetheproposedpurchaseordertodetermineifthereareanypotentialcon?ictofinterestissues.SeetheCMASTennsandConditions,Con?ictofinterest,formoreinformation.‘FEDERALDEBARMENTWhenfederalfundsarebeingexpended.theagencyisrequiredtoobtain(retainin?le)asigned“FederalDebannent"certi?cationfromtheCMAScontractorbeforethepurchaseorderisissued.Thiscerti?cationisrequiredbytheregulationsimplementingExecutiveOrder12549,DebarmentandSuspension,29CFRPart98,Section98.510,Participants;responsibilities._TheregulationswerepublishedasPartVIIoftheMay26,1988FederalRegister(pages19160-19211).CONTRACTORTRA VELTheTravelprovisionisnotapplicabletothisCMAS.‘ OrderinglnstmctionsandSpecialProvisions
LIQUIDATEDDAMAGESFORLATEDELIVERYThevalueoftheliquidateddamagescannotbeapenalty,mustbemutuallyagreeduponbyagencyandcontractorandincludedinthepurchaseordertobeapplicable.ACCEPTANCETESTINGCRITERIA Iftheagencywantstoincludeacceptancetestingforallnewlyinstalledtechnologysystems,andindividualequipment,andmachineswhichareaddedor?eldmodi?ed(modi?cationofamachinefromonemodeltoanother)afterasuccessfulperfonnanceperiod,thetestcriteriamustbeincludedinthepurchaseordertobeapplicable.

AMERICANSWITHDISABILITYACT(ADA!
Section504oftheRehabilitationActof1973asamended;TitleVIandVIIoftheCivilRightsActof1964asamended;AmericanswithDisabilitiesAct,42USC12101;CaliforniaCodeofRegulations,Title2,Title22;CaliforniaGovernmentCode,Sections11135,etseq.;andotherfederalandStatelaws,andExecutiveOrdersprohibitdiscrimination.Allprograms,activities,employmentopportunities,andservicesmustbemadeavailabletoallpersons,includingpersonswithdisabilities.SeeAttachmentAforProcurementDivision‘sADACompliancePolicyofNondiscriminationontheBasisofDisability.Individualgovernmentagenciesareresponsibleforself-compliancewithADAregulations.

Contractorsponsoredeventsmustprovidereasonableaccommodationsforpersonswithdisabilities.DGSPROCUREMENTDIVISIONCONTACTANDPHONENUMBER DepartmentofGeneralServicesProcurementDivision,CMASUnit707ThirdStreet,2"‘Floor,MS2-202WestSacramento,CA95605-2811 Phone#(916)3754365

13.C

CALIFORNIAMULTIPLEAW ARDSCHEDULE(CMAS)ECSIMAGING,INC.CMASNO.3-19-70-2982C ATTACHMENTAADANOTICEProcurementDivision(StateDepartmentofGeneralServices)AMERICANSWITHDISABILITIESACT(ADA)COMPLIANCEPOLICYOFNONDISCRIMINATIONONTHEBASISOFDISABILITY TomeetandcarryoutcompliancewiththenondiscriminationrequirementsoftheAmericansWithDisabilitiesAct(ADA),itisthepolicyoftheProcurementDivision(withintheStateDepartmentofGeneralServices)tomakeeveryefforttoensurethatitsprograms,activities,andservicesareavailabletoallpersons,includingpersonswithdisabilities.ForpersonswithadisabilityneedingareasonableaccommodationtoparticipateintheProcurementprocess,orforpersonshavingquestionsregardingreasonableaccommodationsfortheProcurementprocess,pleasecontacttheProcurementDivisionat(916)375-4400(mainoffice);theProcurementDivisionTTY/TDD(telephonedeviceforthedeaf)orCaliforniaRelayServicenumberswhicharelistedbelow.YoumayalsocontactdirectlytheProcurementDivisioncontactpersonwhoishandlingthisprocurement.

IMPORTANT:TOENSURETHATWECANMEETYOURNEED,ITISBESTTHATWERECEIVEYOURREQUESTATLEAST10WORKINGDAYSBEFORETHESCHEDULEDEVENT(i.e.,MEETING,CONFERENCE,WORKSHOP,etc.)ORDEADLINEDUE-DATEFORPROCUREMENTDOCUMENTS.- TheProcurementDivisionTTYtelephonenumbersare:SacramentoOffice:916-376-5127(CALNET480-5127)TheCaliforniaRelayServiceTelephoneNumbersare:V oice 1-800-735-2922,or7-1-1SpeechtoSpeechService:1-800-854-7784 OrderingInstructions‘andSpecialProvisions 10

13.C

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13.C

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Notes:

ATTACHMENTBCMASQUARTERLYBUSINESSACTIVITYREPORT
InstructionsforcompletingtheCMASQuarterlyBusinessActivityReport Completethetopoftheformwiththeappropriateinformationforyourcompany.AgencyName- IdentifytheStateagencyorLocalGovernmentagencythatissuedtheorder.PurchaseOrderNumber-Identifythepurchaseordernumber(andamendmentnumberifapplicable)ontheorderform.Thisisnotyourinvoicenumber.ThisisthenumbertheStateagencyorLocalGovernmentagencyassignstotheorder.PurchaseOrderDate-Identifythedatethepurchaseorderwasissued,asshownontheorder.Thisisnotthedatevoureceived,accepted,orinvoicedtheorder.TotalDollarsPerP0-Identifythetotaldollarsoftheorderexcludingtaxandfreight.TaxmustNOTbeincludedinthequarterlyreport,eveniftheagencyincludestaxonthepurchaseorder.Thetotaldollarsperordershouldindicatetheentirepurchaseorderamount(lesstaxandfreight)regardlessofwhenyouinvoiceorder,performservices,deliverproduct,orreceivepayment.AgencyContact-Identifytheorderingagency'scontactpersononthepurchaseorder.AgencyAddress— Identifytheorderingagency'saddressonthepurchaseorder.PhoneNumber-Identifythephonenumberfortheorderingagency'scontactperson.TotalStateSales&TotalLocalSales- SeparatelyidentifythetotalStatedollarsand/orLocalGovernmentagencydollars(pre—tax)forallordersplacedinquarter.1%RemittedtoDGS— Identify1%ofthetotalLocalGovernmentagencydollarsreportedforthequarter.ThisistheamounttoberemittedtoDGSbycontractorswhoarenotCaliforniacertl?edsmallbusinesses.GrandTotal- IdentifythetotalofallStateandLocalGovernmentagencydollarsreportedforthequarter.

AreportisrequiredforeachCMAS,eachquarter,eveniftherearenonewordersforthequarter.Quarterlyreportsareduetwoweeksaftertheendofthequarter.

OrderingInstructionsandSpecialProvisions12

13.C

GSPD-401IT-CMAS

CALIFORNIAMULTIPLEAW ARDSCHEDULES(CMAS)GENERALPROVISIONS-INFORMATIONTECHNOLOGY

1.DEFINITIONS:Unlessotherwisespeci?edintheStatementofWorkthefollowingtermsshallbegiventhemeaningshown.unlesscontextrequiresotherwise.a)‘AcceptanceTests"meansthosetestsperformedduringthePerformancePeriodwhichareintendedtodetenninecomplianceofEquipmentandSoftwarewiththespeci?cationsandallotherAttachmentsincorporatedhereinbyreferenceandtodetenninethereliabilityoftheEquipment.b)"ApplicationProgram"meansacomputerprogramwhichisintendedtobeexecutedforthepurposeofperformingusefulworkfortheuseroftheinformationbeingprocessed.ApplicationprogramsaredevelopedorotherwiseacquiredbytheuseroftheHardwarelsoftwaresystem,buttheymaybesuppliedbytheContractor.c)“Attachment”meansamechanical.electrical,orelectronicinterconnectiontotheContractor-suppliedMachineorSystemofEquipment,manufacturedbyotherthantheoriginalEquipmentmanufacturer,thatisnotconnectedbytheContractor.d)"Businessentity‘meansanyindividual,business.partnership,jointventure,corporation,S-corporation,limitedliabilitycompany.solepmprietorshlp,jointstockcompany,consortium,orotherprivatelegalentityrecognizedbystatute.e)“Buyer”meanstheState'sauthorizedcontractingof?cial.0“CommercialHardware"meansHardwaredevelopedorregularlyusedthat(I)hasbeensold,leased,orlicensedtothegeneralpublic;(ii)hasbeenofferedforsale,lease,orlicensetothegeneralpublic;(iii)hasnotbeenoffered,sold,leased,orlicensedtothepublicbutwillbeavailableforcommercialsale,lease,orlicenseintimetosatisfythedeliveryrequirementsofthisContract;or(iv)satis?escriterionexpressedIn(i),(ii),or(iii)aboveandwouldrequireonlyminormodi?cationstomeettherequirementsofthisContract.g)“commercialSoftware”meansSoftwaredevelopedorregulanyusedthat:(I)hasbeensold,leased,orlicensedtothegeneralpublic;(it)hasbeenofferedforsale,lease,orlicensetothegeneralpublic;(iii)hasnotbeenoffered,sold,leased,orlicensedtothepublicbutwillbeavailableforcommercialsale,lease,orlicenseintimetosatisfythedeliveryrequirementsofthisContract:or(iv)satis?esacriterionexpressedin(I),(it),or(iii)aboveandwouldrequireonlyminormodificationstomeettherequirementsofthisContract.h)“Contract”meansthisContractoragreement(includinganypurchaseorder),bywhatevernameknownorinwhateverformatused.i)"customSoftware”meansSoftwarethatdoesnotmeetthede?nitionofCommercialSoftware.j) “contractor”meanstheBusinessEntitywithwhomtheStateentersintothisContract.Contractorshallbe K)
I)
synonymouswith‘supplier’.“vendor”orothersimilarterm.‘DataProcessingSubsystem“meansacomplementofContractonfumishedindividualMachines,includingthenecessarycontrollingelements(orthefunctionalequivalent),OperatingSoftwareandSoftware,Ifany,whichareacquiredtooperateasanintegratedgroup.andwhichareInterconnectedentirelybyContractor-suppliedpowerand/orsignalcables:e.g..directaccesscontrolleranddrives,aclusteroftenninalswiththeircontroller,etc.‘DataProcessingSystem(System)"meansthetotalcomplementofContractohfumlshedMachines.includingoneormorecentral’processors(orInstructionprocessors).OperatingSoftwarewhichareacquiredtooperateasanintegratedgroup.“De|lverabies"meansGoods,Software,lnfonnationTechnology,telecommunicationstechnology,Hardware,andotherlterns(e.g.reports)tobedeliveredpursuanttothisContract,includinganysuchitemsfumlshedincidenttotheprovisionofservices. '
"DesignatedCPU(s)"meansforeachproduct.ifapplicable.thecentralprocessingunitofthecomputersortheserverunit,includinganyassociatedperipheralunits.ifnospeci?c“DesignatedCPU(s)'arespeci?edontheContract,thetennshallmeananyandallCPLlslocatedatthesitespeci?edtherein."Documentation"meansmanualsandotherprintedmaterialsnecessaryorusefultotheStateInitsuseormaintenanceoftheEquipmentorSoftwareprowdedhereunder.ManualsandotherprintedmaterialscustomizedfortheStatehereunderconstituteWorkProductifsuchmaterialsarerequiredbytheStatementofWork."Equipment"isanall-inclusivetermwhichreferseithertoindividualMachinesortoacompleteDataProcessingSystemorsubsystem,includingitsHardwareandOperatingSoftware(ifany).‘EquipmentFailure"isamalfunctionIntheEquipment,excludingallexternalfactors.whichpreventstheaccomplishmentoftheEquipmentsIntendedtunctlon(s).IfmicrowdeorOperatingSoftwareresidingintheEquipmentisnecessaryfortheproperoperationoftheEquipment,infailureofsuchmicrocodeorOperatingSoftwarewhichpreventstheaccomplishmentoftheEquipment’:intendedfunctionsshallbedeemedtobeanEquipmentFailure.‘FacilityReadinessDate“meansthedatespeci?edintheStatementofWorkbywhichtheStatemusthavethesitepreparedandavailableforEquipmentdeliveryandinstallation.“Goods”meansalltypesoftangiblepersonalproperty,includingbutnotlimitedtomaterials,supplies,andEquipment(includingcomputerandtelecommunicationsEquipment).

REVISEDANDEFFECTIVEMARCH15,2018 PAGE1OF30

13.C

GSPD—40'l|T—CMAS

CALIFORNIAMULTIPLEAW ARDSCHEDULES(CMAS)GENERALPROVISIONS-INFORMATIONTECHNOLOGY Y)
bb)
cc)
"Hardware‘usuallyreferstocomputerEquipmentandiscontrastedwithSoftware.SeealsoEquipment.‘installationDate“meansthedatespeci?edintheStatementofworkbywhichtheContractormusthavetheorderedEquipmentready(certi?ed)forusebytheState.‘informationTechnology"includes,butisnotlimitedto,allelectronictechnologysystemsandservices,automatedinformationhandling,Systemdesignandanalysis,conversionofdata,computerprogramming,informationstorageandretrieval,telecommunicationswhichincludevoice.video,anddatacomrnunications.requisiteSystemcontrols,simulation,electroniccommerce,andallrelatedinteractionsbetweenpeopleandMachines.'Machine"meansanindividualunitofaDataProcessingSystemorsubsystem,separatelyidenti?edbyatypeandlormodelnumber,comprisedofbutnotlimitedtomechanical,electro-mechanical,andelectronicparts,microcode,andspecialfeaturesinstalledthereonandincludinganynecessarySoftware,e.g.,centralprocessingunit,memorymodule.tapeunit,cardreader,etc.‘MachineAlteration“meansanychangetoaContractor-suppliedMachinewhichisnotmadebytheContractor,andwhichresultsintheMachinedeviatingfromitsphysical,mechanical,electrical,orelectronic(includingmicrocode)design,whetherornotadditionaldevicesorpartsareemployedinmakingsuchchange.‘MaintenanceDiagnosticRoutines"meansthediagnosticprogramscustomarilyusedbytheContractortotestEquipmentforproperfunctioningandreliability.“ManufacturingMaterials"meansparts,tools,dies,Jigs,?xtures,plans,drawings,andInformationproducedoracquired,orrightsacquired,speci?callytoful?llobligationssetforthherein.‘Mean?meBetweenFailure(MTBF)"meanstheaverageexpectedorobservedtimebetweenconsecutivefailuresinaSystemorcomponent‘MeanTimetoRepair(MTfR)"meanstheaverageexpectedorobservedtimerequiredtorepairaSystemorcomponentandreturnittonormaloperation.‘OperatingSoftware”meansthoseroutines,whetherornotidenti?edasProgramProducts,thatresideintheEquipmentandarerequiredfortheEquipmenttoperformitsintendedfunctionfs),andwhichinterfacetheoperator,otherContractor-suppliedprograms.anduserprogramstotheEquipment. '
‘OperationaluseTime"meansforperfonnancemeasurementpurposes,thattimeduringwhichEquipmentisinactualoperationbytheState.FormaintenanceOperationalUseTimepurposes,thattimeduringwhichEquipmentisinactualoperationandisnotsynonymouswithpowerontime. ee)‘PeriodofMaintenanceCoverage“meanstheperiodoftime,asselectedbytheState,duringwhichmaintenanceservicesareprovidedbytheContractorforatixedmonthlycharge,asopposedtoanhourlychargetorservicesrendered.ThePeriodofMaintenanceCoverageconsistsofthePrincipalPeriodofMaintenanceandanyadditionalhoursofcoverageperday,andlorincreasedcoverageforweekendsandholidays. .ff)‘PreventiveMaintenance“meansthatmaintenanceperfonnedonascheduledbasisbytheContractor,whichisdesignedtokeeptheEquipmentInproperoperating - condition.gg)‘PrincipalPeriodofMaintenance"meansanynineconsewtivehoursperday(usuallybetweenthehoursof7:00am.and6:00pm)asselectedbytheState.includinganof?cialmealperiodnottoexceedonehour,MondaythroughFriday,excludingholidaysobservedattheinstallation.hh)‘ProgrammingAids"meansContractor-suppliedprogramsandroutinesexecutableontheContractorsEquipmentwhichassistsaprogrammerinthedevelopmentofapplicationsincludinglanguageprocessors,sorts,communicationsmodules,databasemanagementsystems,andutilityroutines,(tape-to-diskroutines,disk-to—printroutines,etc.).ii)‘ProgramProduct“meansprograms,routines,subroutines.andrelateditemswhichareproprietarytotheContractorandwhicharelicensedtotheStateforitsuse,usuallyonthebasisofseparatelystatedchargesandappropriatecontractualprovisions.jj)‘RemedialMaintenance‘meansthatmaintenanceperformedbytheContractorwhichresultsfromEquiprnenl(includingOperatingSoftware)failure,andwhichisperfonnedasrequired,i.e.,onanunscheduledbasis.kk)“Software”meansanaiivincluslvetennwhichreferstoanycomputerprograms,routines.orsubroutinessuppliedbytheContractor,includingOperatingSoftware,ProgrammingAids,ApplicationPrograms,andProgramProducts.ii)‘SoftwareFailure”meansamalfunctionintheContractor-suppliedSoftware,otherthanOperatingSoftware,whichpreventstheaccomplishmentofwork,eventhoughtheEquipment(includingitsOperatingSoftware)maystillbecapableofoperatingproperty.ForOperatingSoftwarefailure,seede?nitionofEquipmentFailure.mm)“state”meansthegovernmentoftheStateofCaiifomia,itsemployeesandauthorizedrepresentatives,includingwithoutlimitationanydepartment.agency,orotherunitofthegovernmentoftheStateofCalifornia.nn)"system"meansthecompletecollectionatHafdvimfe,SoftwareandservicesasdescribedinthisContract.

REVlS_EDANDEFFECTIVEMARCH15,2018 PAGE2'OF30

13.C

GSPD-401|T—CMAS

CALIFORNIAMULTIPLEAW ARDSCHEDULES(CMAS)GENERALPROVISIONS-INFORMATIONTECHNOLOGY Integratedandfunctioningtogether.andperforminginaccordanceMththisContract.oo)“U.S.intellectualPropertyRights"meansintellectualpropertyrightsenforceableinthe,UnitedStatesofAmerica.includingwithoutlimitationrightsintradesecrets.copyrights.andUS.patents.

CONTRACTFORMATION:IfthisContractresultsfromaLetterofOffer.thenContractorsofferisdeemedaiirrnofferandthisContractdocumentistheState'sacceptanceofthatoffer.

COMPLETEINTEGRATION:This(mntract.includinganydocumentsincorporatedhereinbyexpressreference.isintendedtobeacompleteintegrationandtherearenopriororcontemporaneousdifferentoradditionalagreementspertainingtothesubjectmatteroftheContract.

SEVERABILITY:TheContractorandtheStateagreethatIfanyprovisionofthisContractisfoundtobeillegalorunenforceable,suchtermorprovisionshallbedeemedstrickenandtheremainderoftheContactshallremaininfullforceandeffectEitherpartyhavingknowledgeofsuchtermorprovisionshallpromptlyinformtheotherofthepresumednon-applicabilityofsuchprovision.

INDEPENDENTCONTRACTOR:ContractorandtheagentsandemployeesofContractor.intheperformanceofthisContract.shallactinanIndependentcapacityandnotasofficersoremployeesoragentsoftheState.

APPLICABLELAW:ThisContractshaltbegovernedbyandshallbeinterpretedinaccordancewiththelawsoftheStateofCalifornia;venueofanyactionbroughtwithregardtothisContractshallbeinSacramentoCounty.Sacramento,California.TheUnitedNationsConventiononContractsfortheinternationalSaleofGoodsshallnotapplytothisContract.COMPIJANCEWITHSTATUTESANDREGULATIONS:a)TheStateandtheContractorwarrantsandcerti?esthatintheperformanceofthisContract.itwillcomplywithallapplicablestatutes,rules,regulationsandordersoftheUnitedStatesandtheStateofCalifornia.TheContractoragreestoindemnifytheStateagainstanyloss,cost.damageorliabilitybyreasonoftheConhactofsviolationofthisprovision. ‘ b)TheStatewillnotifycontractorofanysuchclaiminwritingandtenderthedefensethereofwithinareasonabletime;andc)TheContractorwillhavesolecontrolofthedefenseofanyactiononsuchclaimandallnegotiationsforitssetttementorcompromise;providedthat(I)whensubstantialprinciplesofgovernmentorpubliclawareinvolved,whenlitigationmightcreateprecedentaffectingfutureStateoperationsorliability.orwhenInvolvementoftheStateis otherwisemandatedbylaw.theStatemayparticipateinsuchactionatitsownexpensewithrespecttoattomeys’feesandcosts(butnotliability);(Ii)whereasettiernentwouldimposeliabilityontheState,affectprinciplesofCallfomiagovemmentorpubliclaw.orimpacttheauthorityoftheState,theDepartmentofGeneralServiceswillhavetherighttoapproveordisapproveanysettlementorcompromise,whichapprovalwillnotunreasonablybewithheldordelayed;and(Iii)theStatewillreasonabiycooperateinthedefenseandinanyrelatedsettiernentnegotiations.cl)ifthisContractisinexcessof$554,000.ItissubjecttotherequirementsoftheWorldTradeOrganization(WT0)GovernmentProcurementAgreement(GPA).e)TotheextentthatthisContractfallswithinthescopeofGovemrnentCodeSection11135,Contractorherebyagreestorespondtoandresolveanycomplaintbroughttoitsattention.regardingaccessibilityofitsproductsorservices.

CONTRACTOR‘SPOWERANDAUTHORITV:TheContractorwarrantsthatithasfullpowerandauthoritytogranttherightshereingrantedandwillholdtheStatehanniessfromandagainstanyloss.cost.liability.andexpense(includingreasonableattorneyfees)arisingoutofanybreachofthiswarranty.Further.ContractoraversthatItwillnotenterintoanyarrangementwithanythirdpartywhichmightabridgeanyrightsoftheStateunderthisContract.a)TheStatewillnotifyContractorofanysuchclaiminwritingandtenderthedefensethereofwithinareasonabletime;andb)TheContractorwillhavesolecontrolofthedefenseofanyactiononsuchciaimandallnegotiationsforitssettlementorcompromise;providedthat(I)whensubstantialprinciplesofgovernmentorpubliclawareInvolved.whenlitigationmightcreateprecedentaffectingfutureStateoperationsorliability,orwheninvolvementoftheStateIsotherwisemandatedbylaw,theStatemayparticipateinsuchactionatitsownexpensewithrespecttoattorneys’feesandoosts(butnotliability);(ii)whereasettiementwouldimposeliabilityontheState.affectprinciplesofCailfomiagovernmentorpubliclaw.orimpacttheauthorityoftheState.theDepartmentofGeneralServiceswillhavetherighttoapproveordisapproveanysettlementorcompromise,whichapprovalwillnotunreasonablybewithheldordelayed;and(iii)theStatewillreasonablycooperateinthedeferseandinanyrelatedsetiiementnegotiations.

9.CMAS—.ASS|GNMENT:a)ThisContractshallnotbeassignablebytheContractorinwholeorinpartwithoutthewrittenconsentoftheState.TheState'sconsentshallnotbeunreasonablywithheldordelayed.Forthepurposeofthisparagraph.Statewill REVISEDANDEFFECTIVEMARCH15,2018 PAGE3OF30

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notunreasonablyprohibitContractorfromfreelyassigningitsrighttopayment,providedthatContractorremainsresponsibleforitsobligationshereunder.b)ShouldtheStatedesire?nancingoftheassetsprovidedhereunderthroughGS$Mart,theState's?nancialmarketplace,theContractoragreestoassigntoaStatedesignatedlenderitsrighttoreceivepaymentfromtheStatefortheassetsinexchangeforpaymentbythelenderofthecashpurchasepricefortheassets.UponnoticetodosofromtheState-designatedlenderatanytimepriortopaymentbytheShtefortheassets,theContractorwillexecuteanddelivertotheState-designatedlenderanassignmentagreementandanyadditionaldocumentsnecessaryfortheStateselected?nancingplan.TheState-designatedlenderwillpaytheContractoraccordingtothetermsoftheContractor'sinvoiceuponacceptanceoftheassetsbytheState.

W AIVEROFRIGHTS:AnyactionorinactionbytheStateorthefailureoftheStateonanyoccasion.toenforceanyrightorprovisionoftheContract,shallnotbeconstruedtobeawaiverbytheStateofitsrightshereunderandshallnotpreventtheStatefromenforcingsuchprovisionorrightonanyfutureoccasion.TherightsandremediesoftheStatehereinarecumulativeandareinadditiontoanyotherrightsorremediesthattheStatemayhaveatlaworinequity.

CMAS- ORDEROFPRECEDENCE:Intheeventofanyinconsistencybetweenthearticles,attachments,speci?cationsorprovisionswhichconstitutethisContract,thefollowingorderofprecedenceshallapply:a)TheseGeneralProvisions— lnfonnationTechnology(intheinstancesprovidedhereinwheretheparagraphbegins:‘Unlessotherwisespeci?edintheStatementofWork‘provisionsspecifiedintheStatementofWorkreplacingtheseparagraphsshalltakeprecedenceovertheparagraphreierenoedintheseGeneralProvisions);b)Contractform,i.e.,PurchaseOrderSTD65,StandardAgreementSTD213,etc.,andanyamendmentsthereto;c)OtherspecialProvisions;FederalGSA(orothermultipleaward)termsandconditions:Statementofwork.Includinganyspeci?cationsincorporatedbyreferenceherein;andAllotherattachmentsincorporatedintheContractbyreference.

PACKINGANDSHIPMENT:a)AllGoodsaretobepackedinsuitablecontainersforprotectioninshipmentandstorage.andinaccordancewithapplicablespeci?cations.Eachcontainerofamultiplecontainershipmentshallbeidenti?edto:I)showthenumberofthecontainerandthetotalnumberofcontainersintheshipment;and

13. 14.
ii)thenumberofthecontainerinwhichthepackingsheethasbeenenclosed.b)AllshipmentsbyContractororitssubcontractorsmustincludepackingsheetsidentifying:theState'sContractnumber:itemnumber,quantityandunitofmeasure;partnumberanddescriptionoftheGoodsshipped;andappropriateevidenceofinspection,itrequired.GoodsfordifferentContractsshallbelistedonseparatepackingsheets.c)Shipmentsmustbemadeasspeci?edinthisContract.asitmaybeamended,orothenmsedirectedinwritingbytheState'sTransportationManagementUnitwithintheDepartmentofGeneralServices,ProcurementDivision.

TRANSPORTATIONCOSTSANDOTHERFEESOREXPENSES:Nochargefordelivery.drayage,express,parcelpost,packing,cartage,insurance,licensefees,permits,costofbonds,orforanyotherpurposewillbepaidbytheStateunlessexpresslyincludedanditemizedintheContract.a)TheContractormuststrictlyfollowContractrequirementsregardingFreeonBoard(F.0.B.),freighttermsandroutinginstructions.TheStatemayrpennituseofanalternatecarrieratnoadditionalcosttotheStatewithadvancewrittenauthorizationoftheBuyer.b)if‘prepayandadd”isselected,supportingfreightbillsarerequiredwhenover$50.unlessanexactfreightchargeisapprovedbytheTransportationManagementUnitwithintheDepartmentofGeneralServicesProcurementDivisionandawaiverisgranted.is)On"F.O.B.ShippingPoint"transactions,shouldanyshipmentsundertheContractbereceivedbytheStateinadamagedconditionandanyrelatedfreightlossanddamageclaims?ledagainstthecarrierorcarriersbewhollyorpartiallydeclinedbythecarrierorcarrierswiththeinferencethatdamagewastheresultoftheactoftheshippersuchasinadequatepackagingorloadingorsomeinherentdetectintheEquipmentand/ormaterial,Contractor,onrequestoftheState,shallatContractors_ ownexpenseassisttheStateinestablishingcanierliabilitybysupplyingevidencethattheEquipmentand/ormaterialwasproperlyconstructed,manufactured,packaged,andsecuredtowithstandnormaltransportation DELIVERY:TheContractorshallstrictlyadheretothedeliveryandcompletionschedulesspeci?edinthisContract.Time,itstatedasanumberofdays.shallmeancalendardaysunlessotherwisespeci?ed.Thequantitiesspeci?edhereinaretheonlyquantitiesrequired.ittheContractordeliversinexcessofthequantitiesspeci?edherein.theStateshallnotberequiredtomakeanypaymentfortheexcessDeliverabies.andmayreturnthemtoContractoratContractor'sexpenseorutilizeanyotherrightsavailabletotheStateatlaworinequity.

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15.SUBSTITUTIONS:SubstitutionofDeliverablesmaynotbetenderedwithoutadvancewrittenconsentoftheBuyer,Contractorshallnotuseanyspeci?cationinlieuofthosecontainedintheContractwithoutwrittenconsentoftheBuyer..INSPECTION,ACCEPTANCEANDREJECTION:Unlessotherwisespeci?edIntheStatementofWork:a)WhenacquiringCommercialHardvmreorCommercialSoftware,theStateshallrelyonContractorsexistingqualityassurancesystemasasubstituteforStateinspectionandtesting.Forallotheracquisitions,ContractoranditssubcontractorswillprovideandmaintainaqualityassurancesystemacceptabletotheStatecoveringDeliverablesandservicesunderthisContractandwilltendertotheStateonlythoseDeliverablesthathavebeeninspectedandfoundtooonfonntothisContract‘srequirements.TheContractorwillkeeprecordsevidencinginspectionsandtheirresult,andwillmaketheserecordsavailabletotheStateduringContractperformanceandforthreeyearsafter?nalpaymentTheContractorshallpermittheStatetoreviewprocedures,practices,processes,andrelateddocumentstodeterminetheacceptabilityofContractorsqualityassuranceSystemorothersimilarbusinesspracticesrelatedtoperformanceoftheContract.b)AllDeliverablesmaybesubjecttoinspectionandtestbytheStateoritsauthorizedrepresentatives.c)TheContractoranditssubcontractorsshallprovideallreasonablefacilitiesforthesafetyandconvenienceofinspectorsatnoadditionalcosttotheState.TheContractorshallfumlshtoirwpectorselllnfonnationanddataasmaybereasonablyrequiredtoperformtheirinspection.d)Subjecttosubsection16(a)above,allDeliverablesmaybesubjectto?nalinspection,testandacceptancebytheStateatdestination,notwithstandinganypaymentorInspectionatsource.a)TheStateshallgivewrittennoticeofrejectionofDeliverablesdeliveredorservicesperformedhereunderwithinareasonable‘timeafterreceiptofsuchDeliverablesorperformanceofsuchservices.SuchnoticeofrejectionwillstatetherespectsinwhichtheDeliverablesdonotsubstantiallyconformtotheirspeci?cations.iftheStatedoesnotprovidesuchnoticeofrejectionwithin?fteen(15)daysofdeliveryforpurchasesofCommercialHardwareorCommercialSoftwareorthirty(30)daysofdeliveryforallotherpurchases,suchDeliverablesandserviceswillbedeemedtohavebeenaccepted.AcceptancebytheStatewillbe?nalandirreversible,exceptasitrelatestolatentdefects,fraud,andgrossmistakesamountingtofraud.AcceptanceshallnotbeconstruedtowaiveanywanantyrightsthattheStatemighthaveatlaworbyexpressreservationinthisContractwithrespecttoanynonoonfonnlty.

17. 18.

SAMPLES:a)SamplesofitemsmayberequiredbytheStateforinspectionandspeci?cationtestingandmustbefumishedfreeofexpensetotheState.Thesamplesfumishedmustbeidenticalinallrespectstotheproductsofferedand/orspeci?edIntheContract.in)Samples,ifnotdestroyedbytests.may,uponrequestmadeatthetimethesampleisfurnished.bereturnedatContractorsexpense.cums-W ARRANTY:ThefollowingwarrantylanguageisinadditiontothewarrantylanguageprovidedinthefederalGSAMultipleAwardScheduleorotherbaseContractusedtoestablishthisQMASContract.Whenthereisaconflictbetweenthelanguage.thefollowingwarrantylanguageoverrides.a)Unlessotherwisespeci?edintheStatementofWork,thewarrantiesinthissubsectiona)beginupondeliveryofthegoodsorservicesinquestionandendone(1)yearthereafter.TheContractorwarrantsthat(i)DeliverablesandservicesfumishedhereunderwillsubstantiallyconformtotherequirementsofthisContract(includingwithoutlimitationalldescriptions.speci?cations.anddrawingsidenti?edintheStatementofWork),and(ii)theDeliverableswillbefreefrommaterialdefectsinmaterialsandworkmanship.Wherethepartieshaveagreedtodesignspeci?cations(suchasaDetailedDesignDocument)andinmrporatedthesameorequivalentintheStatementofWorkdirectlyorbyreference.theContractorwillwarrantthatitsDeliverablesprovideallmaterialfunctionalityrequiredthereby.inadditiontotheotherwarrantiessetforthherein.wheretheContractcallsfordeliveryofCommercialSoitware.theContractorwarrantsthatsuchSoftwarewillperforminaccordancewithitslicenseandaccompanyingDocumentation.TheStatesapprovalofdesignsorspeci?cationsfurnishedbyContractorShallnotrelievethecontractorofitsobligationsunderthiswarranty.b)TheContractorwarrantsthatDeliverablesfumishedhereunder(i)willbefree,atthetimeofdelivery,ofharrnfuicode(i.e.oornputerviruses,worms.trapdoors.timebombs,disablingcode,oranysimilarmaliciousmechanismdesignedtointerferewiththeintendedoperationof,orcausedamageto,computers,data,orSoftware);and(ii)willnotinfringeorviolateanyU.S.intellectualPropertyRight.Withoutlimitingthegeneralityoftheforegoing,iftheStatebelievesthatharmfulcodemaybepresentinanyCommercialSoftwaredeliveredhereunder,theContractorwill,upontheState'srequest.provideaneworcleaninstalloftheSoftware.c)Unlessotherwisespeci?edintheStatementofWont:(i)ThecontractordoesnotwarrantthatanySoftwareprovidedhereunderiserror-freeorthatitwillrunwithoutimmaterialinterruption.

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CALIFORNIAMULTIPLEAW ARDSCHEDULES(CMAS)GENERALPROVISIONS-INFORMATIONTECHNOLOGY (Ii)TheContractordoesnotwarrantandwillhavenoresponsibilityforaclaimtotheextentthatItarisesdirectlyfrom(A)amodi?cationmadebytheState,unlesssuchmodi?cationisapprovedordirectedbytheContractor,(B)useofSoftwareincombinationvvlthoronproductsotherthanasspeci?edbyContractor,or(C)misusebytheState.(iii)WheretheContractorresellsCommercialHardwareorCommercialSoftwareitpurchasedfromathirdparty,Contractor,totheextentitislegallyabletodoso,willpassthroughansuchthirdpartywarrantiestotheStateandwillreasonablycooperateInenforcingthem.Suchwarrantypass-throughwillnotrelievetheContractorfromContractor'swarrantyobligationssetforthabove.d)Allwarranties,Includingspecialwarrantiesspeci?edelsewhereherein.shallinuretotheState,itssuccessors.assigns,customeragencies.andgovernmentalusersoftheDeliverablesorservices.a)Exceptasmaybespeci?callyprovidedintheStatementofWorkorelsewhereinthisContract,foranybreachofthewarrantiesprovidedinthisSection,theState’:exclusiveremedyandContractorssoleobligationwillbelimitedto:I)re-performance,repair,orreplacementofthenonconfonnlngDeliverable(includingwithoutlimitationaninfringingDeliverable)orservice;orii)shouldtheStateInitssolediscretionconsent.refundofallamountspaidbytheStateforthenonconfonnlngDeliverableorserviceandpaymenttotheStateofanyadditionalamountsnecessarytoequaltheState'sCosttoCover.‘CosttoCover’meansthecost,propenymitigated,ofprocuringDeliverablesorservicesofequivalentcapability,function,andperformance.Thepaymentobligationinsubsectione)(li)abovewillnotexceedthelimitsonContractorsliabilitysetforthintheSectionentitled“LimitationofLiability.‘f)EXCEPTFORTHEEXPRESSW ARRANTIESSPECIFIEDINTHISSECTION,CONTRACTORMAKESNOW ARRANTIESEITHEREXPRESSORIMPLIED,INCLUDINGWITHOUTLIMITATIONANYIMPLIEDW ARRANTIESOFMERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE.

19.SAFETYANDACCIDENTPREVENTION:InperformingW0fI<underthisContractonStatepremises,theContractorshallconformtoanyspeci?csafetyrequirementscontainedintheContractorasrequiredbylaworregulation.TheContractorshalltakeanyadditionalprecautionsastheStatemayreasonablyrequireforsafetyandaccidentpreventionpurposes.Anyviolationofsuchrulesandrequirements,unlesspromptlycorrected,shallbegroundsforterminationofthisContractInaccordancewiththedefaultprovisionshereof.

20.INSURANCE:TheContractorshallmaintainallcommercialgeneralliabilityinsurance.workers‘compensationinsuranceandanyotherinsurancerequiredundertheContract.TheContractorshallfurnishinsurancecerti?cate(s)evidencingrequiredinsura\ncecoverageacceptabletotheState,IncludingendorsementsshowingtheStateasan‘additionalinsured‘ifrequiredunderContractAnyrequiredendorsementsrequestedbytheStatemustbeseparatelyprovided;merelyreferringtosuchcoverageonthecertlt'lcates(s)lsinsuf?clentforthispurpose.Whenperfomringworkonstateownedorcontrolledproperty,ContractorshallprovideawaiverofsubrogatlonInfavoroftheStateforitsworkers’compensationPolicy‘

21.TERMINATIONFORNON-APPROPRIATIONOFFUNDS:a)IfthetermofthisContractextendsinto?scalyearssubsequenttothatinwhichitisapproved.suchcontinuationoftheContractiscontingentontheappropriationoffundsforsuchpurposebytheLegislature.lffundstoeffectsuchcontinuedpaymentarenotappropriated,theContractoragreestotakebackanyaffectedDeliverablesfurnishedunderthisContract.terrrrinateanyservicessuppliedtotheStater.rnderthisContract,andrelievetheStateofanyfurtherobligationtherefor.I3)TheStateagreesthatifitappearslikelythatsubsectiona)abovewillbeinvoked,theStateandContractorshallagreetotakeallreasonablestepstoprioritizeworkandDeliverablesandminimizetheIncunenceofcostspriortotheexpirationoffundingforthisContract1:)THESTATEAGREESTHATIFPARAGRAPHa)ABOVEISINVOKED,COMMERCIALHARDW AREANDSOIWW ARETHATHASNOTBEENPAIDFOR,SHALLBERETURNEDTOTHECONTRACTORINSUBSTANTIALLYTHESAMECONDITIONINWHICHDELIVEREDTOTHESTATE,SUBJECTTONORMALWEARANDTEAR.THESTATEFURTHERAGREESTOPAYFORPACKING,CRATING,TRANSPORTATIONTOCONTRACTORSNEARESTFACILITYANDFORREIMBURSEMENTTOTHECONTRACTORFOREXPENSESINCURREDFORTHEIRASSISTANCEINSUCHPACKINGANDCRATING.

22.TERMINATIONFORTHECONVENIENCEOFTHESTATE:a)TheStatemayterminateperformanceofworkunderthisContractforitsconvenienceinwholeor,fromtimetotime,inpart,iftheDepartmentofGeneralServices,DeputyDirectorProcurementDivision,ordesignee.determinesthataterminationisintheState'sInterest.TheDepartmentofGeneralServices,DeputyDirector,ProcurementDivision.ordesignee.straitterminatebydeliveringtotheContractoraNoticeofTerminationspecifyingtheextentofterminationandtheeffectivedatethereof.

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0 AfterreceiptofaNoticeofTennlnation,andexceptasdirectedbytheState,theContractorshallimmediatelyproceedwiththefollowingobligations,asapplicable.regardlessofanydelayIndeterminingoradjustinganyamountsdueunderthisclause.TheContractorshall:(i)StopworkasspecifiedintheNoticeofTennlnatlon.(ll)Placenofurthersubcontractsformaterials,services,orfacilities,exceptasnecessarytocompletethecontinuingBunionoftheContract.(iii)Tenninateallsubcontractstotheextenttheyrelatetotheworkterminated.(iv)Settlealloutstandingliabilitiesandterminationsettlementproposalsarisingfromtheterminationofsubcontracts;Aftertermination,theContractorshallsubmita?naltemrlnatlonsettlementproposaltotheStateintheformandwiththeinformationpresrzlbedbytheState.TheContractorshallsubmittheproposalpromptly,butnolaterthan90daysaftertheeffectivedateoftermination,unlessadifferenttimeisprovidedintheStatementofWorkorintheNoticeofTermination.TheContractorandtheStatemayagreeuponthewholeoranypartoftheamounttobepaidasrequestedundersubsection(c)above. '
UnlessotherwisesetforthintheStatementofWork,ittheContractorandtheStatefalltoagreeontheamounttobepaidbecauseoftheterminationforconvenience,theStatewillpaytheContractorthefollowingamounts;providedthatinnoeventwilltotalpaymentsexceedtheamountpayabletotheContractoriftheContracthadbeenfullyperformed:(l)TheContractpriceforDeliverablesorservicesacceptedorretainedbytheStateandnotpreviouslypaidfor,adjustedforanysavingsonfreightandothercharges;and(ii)Thetotalof:A)Thereasonablecostsincurredintheperformanceoftheworkterminated,includinginitialcostsandpreparatoryexpensesallocablethereto,butexotudinganycostattributabletoDeliverablesorservicespaidortobepaid;3)ThereasonablecostofsettlingandpayingterminationsettlementproposalsunderterminatedsubcontractsthatarepmperiychangeabletotheterminatedportionoftheContractandC)Reasonablestorage,transportation,dernobiiiion,unarnortizedoverheadandcapitalcosts,andothercostsreasonablyincurredbytheContractorinwindingdownandterminatingitswork,TheContractorwillusegenerallyacceptedaccountingprinciples,oraccountingprinciplesotherwiseagreedtoin writingbytheparties,andsoundbusinesspracticesindeterminingallcostscialmed.agreedto,ordetennlnedunderthisclause.

23.TERMINATIONFORDEFAULT:at
b)
d)
TheStatemay.subjecttotheclausetitled“ForceMajaure‘andtosubsectiond)below.bywrittennoticeofdefaulttotheContractor,terminatethisContractinwholeorinpartIttheContractorfallsto:l)DelivertheDellverablesorperformtheserviceswithinthetimespeci?edintheContractoranyamendmentthereto;ll)Makeprogress,sothatthelackofprogressendangersperformanceofthisContract;orill)PerformanyoftheotherprovisionsofthisContract.TheState'srighttoterminatethisContractundersub»sectiona)above,maybeexercisedonlyifthefailureconstitutesamaterialbreachofthisContractandiftheContractordoesnotcuresuchfailurewithinthetimeframestatedintheState’scurenotice,whichinnoeventwillbelessthan?fteen(15)days.unlesstheStatementofWorkcallsforadifferentpenod.iftheStateterminatesthisContractinwholeorinpartpursuanttothisSection,itmayacquire,undertermsandInthemannertheBuyerconsidersappropriate,Deliverabiesorservicessimilartothoseterminated,andtheContractorwillbeliabletotheStateforanyexcesscostsforthoseDeliver-ablesandservices,including,withoutlimitationcoststhirdpartyvendorschargeforManufacturingMaterials(butsubjecttotheciauseentitled“LimitationofLiability‘).However,theContractorshallcontinuetheworknotterrnlnated.IftheContractisterminatedfordefault,theStatemayrequiretheContractortotransfertitle,orinthecaseoflicensedSoftware,license.anddelivertotheState,asdirectedbytheBuyer,any:(i)completedDellverables,(ll)partiallycompletedDeliverables,and.(Iii)subjecttoprovisionsofsubsectione)below,ManufacturingMaterialsrelatedtotheterminatedportionofthisContract.Nothinginthissubsectiond)willbeconstruedtogranttheStaterightstoDellverablesthatitwouldnothavereceivedhadthisContractbeenfullyporfonned.UpondirectionoftheBuyer,theContractorshallalsoprotectandpreservepropertyinitspossessionInwhichtheStatehasaninterest.TheStateshallpayContractpriceforcompletedDeliverablesdeliveredandacceptedanditemstheStaterequirestheContractortotransferundersectionto)above.UnlesstheStatementofWorkcallsfordifferentproceduresorrequiresno-chargedeliveryofmaterials,theContractorandBuyershallattempttoagreeontheamountofpaymentforManufacturingMaterialsandother REVISEDANDEFFECTIVEMARCH15,2018 PAGE7OF80

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24. g

25. materialsdeliveredandacceptedbytheStatefortheprotectionandpreservationoftheproperty;providedthatwheretheContractorhasbilledtheStateforanysuchmaterials,noadditionalchargewillapply.FailuretoagreewillconstituteadisputeundertheDisputesclause.TheStatemayvdthholdfromtheseamountsanysumndeterminestobenecessarytoprotecttheStateagainstlossbecauseofoutstandingliensorclaimsofformerlienholders.f)if,afterterminaticn,itisdeterminedbya?naldecisionthattheContractorwasnotIndefault,therightsandobligationsofthepartiesshallbethesameasiftheterminationhadbeenissuedfortheconvenienceoftheState.g)Bothparties,StateandContractor,uponanyterminationfordefault,haveadutytomitigatethedamagessufferedbyit.

Vh)TherightsandremediesoftheStateinthisclauseareinadditiontoanyotherrightsandremediesprovidedbylaworunderthisContract.andaresubjecttotheclatsetitled‘LimitationofLiability.’ FORCEMAJEURE:Exceptfordefaultsofsubcontractorsatanytier,theContractorshallnotbeliableforanyexcesscostsifthefailuretoperformtheContractarisesfromcausesbeyondthecontrolandwithoutthefaultornegligenceoftheContractor.Examplesofsuchcausesinclude,butarenotlimitedto:a)ActsofGodorofthepublicenemy.andb)ActsofthefederalorStategovernmentineitheritssovereignorcontractualcapacity.ifthefailuretoperformiscausedbythedefaultofasubcontractoratanytier,andifthecauseofthedefaultisbeyondthecontrolofboththeContractorandsubcontractor,andwithoutthefaultornegligenceofeither,theContractorshallnotbeliableforanyexcesscostsforfailuretoperform.

RIGHTSANDREMEDIESOFSTATEFORDEFAULT:a)IntheeventanyDeliverablesfurnishedorservicesprovidedbytheContractorintheperformanceoftheContractshouldfailtoconformtotherequirementsherein,ortothesamplesubmittedbytheContractor,theStatemayrejectthesame,anditshallbecomethedutyoftheContractortoreclaimandremovetheitempromptlyortocorrecttheperformanceofservices,withoutexpensetotheState,andimmediatelyreplaceallsuchrejecteditemswithottiersconformingtothecorrtract» b)InadditiontoanyotherrightsandremediestheStatemayhave,theStatemayrequiretheContractor,atContractorsexpense,toshipDellverablesviaairfreightorexpeditedroutingtoavoidorminimizeactualorpotentialdelayifthedelayisthefaultoftheContractor.c)intheeventoftheterminationoftheContract.eitherinwholeorInpart,byreasonofdefaultorbreachbythe <1)
Contractor,anylossordamagesustainedbytheStateinprocuringanyitemswhichtheContractoragreedtosupplyshallbeborneandpaidforbytheContractor(butsubjecttotheclauseentitled‘LimitationofLiability‘).TheStatereservestherighttooffsetthereasonablecostofalldamagescausedtotheStateagainstanyoutstandinginvoicesoramountsowedtoContractorortomakeaclaimagainsttheContractortherefore.

26.IJMITATIONOFLIABIIJTY:a)ExceptasmaybeotherwiseapprovedbytheDepartmentofGeneralServicesDeputyDirector,ProcurementDivisionortheirdesignee,ContraotofsliabilityfordamagestotheStateforanycausewhatsoever.andregardlessoftheformofaction.whetherinContractorintort,shallbelimitedtothePurchasePrice.Forpurposesofthissubsectiona).‘PurchasePrice‘willmeantheaggregateContractprice:exceptthat,withrespecttoaContractunderwhichmultiplepurchaseorderswillbeissued(e.g.,aMasterAgreementorMultipleAwardScheduleContract),‘PurchasePrice‘willmeanthetotalpriceofthepurchaseorderfortheDeliverabie(s)orservice(s).thatgaverisetotheloss,suchthatContractorwillhaveaseparatelimitationofliabilityforeachpurchaseorder.Theforegoinglimitationofliabilityshallnotapply(I)toanyliabilityundertheGeneralProvisionsentitled‘CompliancewithStatutesandRegulations‘;(ii)toliabilityundertheGeneralProvisionsentitled“Patent,Copyright,andTradeSecretIndemnity‘ortoanyotherliability(includingwithoutlimitationindemni?cationobligations)forinfringementofthirdpartyIntellectualpropertyrights;(iii)toclaimsarisingunderprovisionshereincallingforindemni?cationforthirdpartyciaimsagainsttheStatefordeath,bodilyinjurytopersonsordamagetorealortangiblepersonalpropertycausedbyContractorsnegligenceorwillfulmisconduct:or(iv)to—costsorattorney'sfeesthattheStatebecomesomittedtorecoverasaprevailingpartyInanyaction.TheState’sliabilityfordamagesforanycausewhatsoever,andregardlessoftheformofaction,whetherinContractorintort.shallbelimitedtothePurchasePrice,asthattermisdefinedInsubsectiona)above.NothinghereinshallbeconstruedtowaiveorlimittheState'ssovereignimmunityoranyotherImmunityfromsuitprovidedbylaw.InnoeventwilleithertheContractorortheStatebeliableforconsequential,incidental,indirect,special,orpunitivedamages,evenifnoti?cationhasbeengivenastothepossibilityofsuchdamages,except(I)totheextentthatContractorsliabilityforsuchdamagesisspeci?callysetforthintheStatementofWorkor(Ii)totheextentthatContractorsliabilityforsuchdamagesarisesoutofsubsectionb)(i),b)(ii).orb)(lv)above.

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27.CONTRACTOR’SLIABILITYFORINJURYTOPERSONSORDAMAGETOPROPERTY:a)TheContractorshallbeliablefordamagesarisingoutofinjurytothepersonandlordamagetothepropertyoftheState,employeesoftheState.personsdesignatedbytheStatefortraining,oranyotherpersonfs)otherthanagentsoremployeesoftheContractor,designatedbytheStateforanypurpose.priorto.during.orsubsequenttodelivery.Installation,acceptance.anduseoftheDeliverableseitherattheContractorssiteorattheState'splaceofbusiness,providedthattheinjuryordamagewascausedbythefaultornegligenceoftheContractor.b)TheContractorshallnotbeliablefordamagesarisingoutoforcausedbyanalterationoranAttachmentnotmadeorinstalledbytheContractor.orfordamagetoalterationsorAttachmentsthatmayresultfromthenormaloperationandmaintenanceoftheDeliverabiesprovidedbytheContractorduringtheContract .INDEMNIFICATTON:TheContractoragreestoindemnify,defendandsaveharmlesstheState,itsof?oers,agentsandemployeesfromanyandallthirdpartyctaims,costs(Includingwithoutlimitationreasonableattomeys'fees).andlossesduetotheinjuryordeathofanyindividual,orthelossordamagetoanyrealortangiblepersonalproperty,resultingfromthewillfulmisconductornegligentactsoromissionsoftheContractororanyofitsaf?liates,agents,subcontractors,employees,suppliers,orlaborersfurnishingorsupplyingwork,services,materials,orsuppliesInconnectionwiththeperformanceofthisContractSuchdefenseandpaymentwillbeconditionaluponthefollowing:a)TheStatewillnotifytheContractorofanysuchclaiminwritingandtenderthedefensethereofwithinareasonabletime;andb)TheContractorwillhavesolecontrolofthedefenseofanyactiononsuchclaimandallnegotiationsforitssettiernentorcompromise;providedthat(i)whensubstantialprinciplesofgovernmentorpubliclawareinvolved,whenlitigationmightcreateprecedentaffectingfutureStateoperationsorliability,orwheninvolvementoftheStateisotherwisemandatedbylaw,theStatemayparticipateInsuchactionatitsownexpensewithrespecttoaitomeys'feesandcosts(butnotliability);(ii)whereasettternentwouldimposeliabilityontheState,affectprinciplesofCaliforniagovernmentorpubliclaw.orlrnpacttheauthorityoftheState,theDepartmentofGeneralServiceswillhavetherighttoapproveordisapproveanysettlementorcompromise.whichapprovalwillnotunreasonablybewithheldordelayed;and(iii)theStatewillreasonablycooperateinthedefenseandinanyrelatedsettlementnegotiations.

29.INVOICES:Unlessotherwisespeci?ed.invoicesshallbesenttotheaddresssetforthherein.invoicesshallbesubmittedin

32. 33.
triplicateandshallincludetheContractnumber.releaseordernumber(ifapplicable);lternnumber,unitprice.extendeditempriceandInvoicetotalamount.Statesalestaxandlorusetaxshallbeitemizedseparatelyandaddedtoeachinvoiceasapplicable.

REQUIREDPAYMENTDATE:PaymentwillbemadeinaccordancewiththeprovisionsoftheCaliforniaPromptPaymentAct,GovernmentCodeSection927et.seq.Unlessexpresslyexemptedbystatute,theActrequiresStateagenciestopayproperlysubmitted,undisputedinvoicesnotmorethan45daysafter(i)thedateofacceptanceofDeiiverablesorperformanceofservices;or(ii)receiptofanundisputedinvoice.whicheverislater..TAXES:Unlessotherwiserequiredbylaw.theStateofCaliforniaisexemptfromFederalexcisetaxes.TheStatewillonlypayforanyStateorlocalsalesorusetaxesontheservicesrenderedorGoodssuppliedtotheStatepursuanttothisContract.

NEWLYMANUFACTUREDGOODS:AllGoodsfumishedunderthisContractshallbenewlymanufacturedGoodsorcerti?edasnewandwarrantedasnewbythemanufacturer,usedorreconditionedGoodsareprohibited.unlessotherwisespeci?ed.

CONTRACTMODIFICATION:NoamendmentorvariationofthetermsofthisContractshallbevalidunlessmadeinwriting,signedbythepartiesandapprovedasrequired.NooralunderstandingoragreementnotincorporatedintheContractisbindingonanyoftheparties.

CONFIDENTIALITYOFDATA:AII?nancial,statistical,personal,technicalandotherdataandinformationrelatingtotheState'soperationwhicharedesignatedcon?dentialbytheStateandmadeavailabletotheContractorinordertocarryoutthiscontract.orwhichbecomeavailabletotheContractorIncarryingoutthisContract.shallbeprotectedbytheContractorfromunauthorizeduseanddisclosurethroughtheobservanceofthesameormoreeffectiveproceduralrequirementsasareapplicabletotheState.Theidentificationofallsuchcon?dentialdataandinformationaswellastheState'sproceduralrequirementsforprotectionofsuchdataandinformationfromunauthorizeduseanddisclosureshallbeprovidedbytheStateinwritingtotheContractor.ifthemethodsandproceduresemployedbytheContractorfortheprotectionoftheContractor'sdataandinformationaredeemedbytheStatetobeadequatefortheprotectionoftheState'sconfidentialinformation,suchmethodsandproceduresmaybeused,withthewrittenconsentoftheState.tocarryouttheIntentofthisparagraph.TheContractorshallnotberequiredundertheprovisionsofthisparagraphtokeepconfidentialanydataorlnfonnatlonwhichisorbecomespubliclyavailable.isalreadyrightfullyintheContractofspossessionwithout REVISEDANDEFFECTNEMARCH15,2018 PAGE9OF30

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36. obligationofcon?dentiality,isindependentlydevelopedbytheContractoroutsidethescopeofthisContract,orisrightfullyobtainedfromthirdparties.

NEWS‘RELEASES:Unlessotherwiseexempted,newsreleases.endorsements,advertising,andsocialmediacontentpertainingtothisContractshallnotbemadewithoutpriorwrittenapprovaloftheDepartmentofGeneralServices.

DOCUMENTATION_
a)TheContractoragreestoprovidetotheState,atnocharge,allDocumentationasdescribedwithintheStatementofWork,andupdatedversionsthereof,whicharenecessaryorusefultotheStateinitsuseoftheEquipmentorSoftwareprovidedhereunder.TheContractoragreestoprovideadditionalDocumentationatpricesnotinexcessofchargesmadebytheContractortoitsothercustomersforsimilarDocumentation.b)IftheContractorisunabletoperformmaintenanceortheStatedesirestoperformitsownmaintenanceonEquipmentpurchasedunderthisContractthanuponwrittennoticebytheStatetheContractorwillprovideatContractorsthencurrentratesandfeesadequateandreasonableassistanceincludingrelevantDocumentationtoallowtheStatetomaintaintheEquipmentbasedonContractorsmethodology.TheContractoragreesthattheStatemayreproducesuchDocumentationforitsownuseinmaintainingtheEquipment.iftheContractorisunabletoperfonnmaintenance,thecontractoragreestolicenseanyotherContractorthattheStatemayhavehiredtomaintaintheEquipmenttousetheabovenotedDocumentation.TheStateagreestoincludetheContractorscopyrightnoticeonanysuchDocumentationreproduced,inaccordancewithcopyrightInstructionstobeprovidedbytheContractor,

37.RIGHTSINWORKPRODUCT:a)Allinventions,discoveries,intellectualproperty,technicalcommunicationsandrecordsoriginatedorpreparedbytheContractorpursuanttothisContractincludingpapers.reports,charts,computerprograms,andotherDocumentationorimprovementsthereto.andIncludingContractorsadministrativecommunicationsandrecordsrelatingtothiscontract(collectively,the‘WorkProduct‘),shallbeOontractofsexclusiveproperty,Theprovisionsofthissub-sectiona)mayberevisedInaStatementofwont. ‘
b)SoftwareandothermaterialsdevelopedorotherwiseobtainedbyorforContractororitsaf?liateslndependenttyofthisContractorapplicablepurchaseorder("Prc~ExistingMaterials‘)donotconstituteWorkProduct.iftheContractorcreatesderivativeworksofPre-ExistingMaterials,theelementsofsuchderivativeworkscreatedpursuanttothisContractconstituteWorkProduct.butotherelementsdonot.Nothinginthis Section37willbecorstruedtointerferewithContractorsoritsaf?iiateslownershipofPre-ExistingMaterials.o)TheStatewillhaveGovernmentPurposeRightstotheWorkProductasDeliverableordeliveredtotheStatehereunder.‘GovernmentPurposeRights”aretheunlimited,irrevocable,worldwide,perpetual,royalty-free.non-exclusiverightsandlicensestouse.modify.reproduce,perform,release.display.createderivativeworksfrom,anddisclosetheWorkProduct.‘GovernmentPurposeRights‘alsoincludetherighttoreleaseordisclosetheWorkProductoutsidetheStateforanyStategovernmentpurposeandtoauthorizerecipientstouse,modify,reproduce,perform,release.display,createderivativeworksfrom,anddisclosetheWorkProductforanyStategovernmentpurpose.SuchrecipientsoftheWorkProductmayinclude,withoutlimitation,StateContractors,Califcmia ‘ localgcvemments,theus.federalgovernment,andtheStateandlocalgovernmentsofotherstates.“GovemmentPurposeRights‘donotincludeanyrightstouse,modify,reproduce,perform,release.display,createderivativeworksfrom,ordisclosetheWorkProductforanycommercialpurpose.d)TheIdeas,concepts,know-how.ortechniquesrelatingtodataprocessing,developedduringthecourseofthisContractbytheContractororjointlybytheContractorandtheStatemaybeusedbyeitherpartywithoutobligationofnoticeoraccounting,a)ThisContractshallnotprecludetheContractorfromdevelopingmaterialsoutsidethisContractthatarecompetitive,inespectiveoftheirsimilaritytomaterialswhichmightbedeliveredtotheStatepursuanttothisContract.

38.SOFTW ARELICENSE:UnlessotherwisespecifiedintheStatementofWork,theContractorherebygrantstotheStateandtheStateacceptsfromtheContractor.subjecttothetermsandconditionsofthisContract,aperpetual,irrevocable,royalty-free.non—exclusive,licensetousetheSoftwareProductsinthisContract(hereinafterreferredtoas“SoftwareProducts‘).at)TheStatemayusetheSoftwareProductsIntheconductofitsownbusiness,andanydivisionthereofb)ThelicensegrantedaboveauthorizedtheStatetousetheSoftwareProductsinmachlnereadableformontheComputerSystemlocatedatthesite(s)specifiedintheStatementofWork.SaidcomputerSystemanditsassociatedunits(collectivelyreferredtoasCPU)areasdesignatedintheStatementofWork.itthedesignatedCPUisinoperativeduetomalfunction,thelicensehereingrantedshallbeternporarllyextendedtoauthorizetheStatetousetheSoftwareProducts,inmachined—readab|eform,onanyotherStateCPUuntilthedesignatedCPUisretumedtooperation.

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39. 40.
o)Bypriorwrittennotice.theStatemayredesignatetheCPUinwhichtheSoftwareProductsaretobeusedprovidedthattheredesignatedCPUissubstantiallysimilarinsizeandscaleatnoadditionalcost.Theredeslgnationshallnotbelimitedtotheoriginalsiteandwillbeeffectiveuponthedatespeci?edInthenoticeofredesignation.cl)AcceptanceofCommercialSoftware(includingthirdpartySoftware)andCustomSoftwarewillbegovernedbythetermsandconditionsofthisContract PROTECTIONOFPROPRIETARYSOFTW AREANDOTHERPROPRIETARYDATA:TheStateagreesthatallmaterialappropriatelymarkedoridenti?edinwritingasproprietary,andfurnishedhereunderareprovidedforStatesexclusiveuseforthepurposesofthisContractonly.AllsuchproprietarydatashallremainthepropertyottheContractor.TheStateagreestotakeallreasonablestepstoinsurethatsuchproprietarydataarenotdisclosedtoothers,withoutpriorwrittenconsentoftheContractor,subjecttotheCallfomlaPublicRecordsAct.TheStatewillinsure,priortodisposingofanymedia,thatanylicensedmaterialscontainedthereonhavebeenerasedorotherwisedestroyed.TheStateagreesthatitwilltakeappropriateactionbyinstruction.agreementorotherwisewithItsemployeesorotherpersonspermittedaccesstolicensedsoftwareandotherproprietarydatatosatisfyitsobligationsunderthisContractwithrespecttouse,copying,modi?cation,protectionandsecurityofproprietarysoftwareandotherproprietarydata.

RIGHTTOCOPYORMODIFY:a)AnySoftwareProductprovidedbythecontractorinmachinereadableformmaybecopied.inwholeorinpart,inprintedormachine-readableformforusebytheStatewiththedesignatedCPU,toperformone-timebenchmarktests.forarchivaloremergencyrestartpurposes,toreplaceaworncopy,tounderstandthecontentsofsuchrnachlne~readablematerial.ortomodifytheSoftwareProductasprovidedbelow;provided,however,thatnomorethanthenumberofprintedcopiesandmachine-readablecopiesasspeci?edintheShtementofWorkwillbeinexistenceunderthisContractatanytimewithoutpriorconsentoftheContractor.SuchconsentshallnotbeunreasonablywithheldbytheContractor.Theoriginal,andanycopiesoftheSoftwareProduct.inwholeorinpart.whicharemadehereundershallbethepropertyoftheContractor.b)TheStatemaymodifyanynon-personalcomputerSoftwareProduct,inmachine-readableform.torItsownuseandmergeitintootherprogrammaterial.Anyportionofthe '
SoftwareProductincludedinanymergedprogrammaterialshallbeusedonlyonthedesignatedCPUsandshallbesublecttothetermsandcondigonsortheContract

41.FUTURER-ELEASES:Unlessotherwisespeci?callyprovidedintheContract,ortheStatementofWork,ifimprovedversions,e.g.,patches,bug?xes,updatesorreleases,ofanySoftwareProductaredevelopedbythecontractor,andaremadeavailabletootherlicensees,theywillbemadeavailabletotheStateatnoadditionalcostonlyifsucharemadeavailabletootherlicenseesatnoadditionalcost.IftheContractoroffersnewversionsorupgradestotheSo?wareProduct,theyshallbemadeavailabletotheStateatthe$tate’soptionatapricenotgreaterthantheContractpriceplusapriceincreaseproportionatetotheincreasefromthelistpriceoftheoriginalversiontothatofthenewversion,ifany.lftheScflvareProducthasnolistprice,suchpriceincreasewillbeproportionatetotheincreaseinaveragepricefromtheoriginaltothenewversion,ifany,asestimatedbytheContractoringoodfaith.

42.ENCRYP11ON/CPUIDAUTHORIZATIONCODES:a)WhenEncn/ptionICPUIdenti?cation(ID)authorizationcodesarerequiredtooperatetheSoftwareProducts,theContractorwillprovideallcodestotheStatewithdeliveryoftheSottware.b)incaseofaninoperativeCPI,theContractorwillprovideatemporaryencryptionlCPUIDauthorizationcodetotheStateforuseonatemporarilyauthorizedCPUuntilthedesignatedCPUisretumedtooperation. '
c)whenchangesIndesignatedCPUsoccur,theStatewillnotifytheContradorviatelephoneandlorfa5irnilele-rnailofsuchchange.Uponreceiptofsuchnotice,theContradorwillissueviatelephoneandlorfacsimile/e-mailtotheStatewithin24hours,atemporaryencryptionIDauthorizationcodeforuseonthenewlydesignatedCPUuntilsuchtimeaspermanentcodeisassigned.

43.PATENT,COPYRIGHTANDTRADESECRETINDEMNITY:a)Contractorwillindemnify.defend.andsaveharmlessthestate,itsofficers,agents,andemployees,fromanyandallthirdpartyclaims.costs(Includingwithoutlimitationreasonableattorneys’fees),andlossesforinfringementorviolationofanyU.S.IntellectualPropertyRightbyanyproductorserviceprovidedhereunder.WithrespecttoclaimsarisingfromcomputerHardwareorSoftwaremanufacturedbyathirdpartyandsoldbyContractorasareseller.ContractorwillpassthroughtotheStatesuchindemnityrightsasitreceivesfromsuchthirdp3ftY("ThirdPartyObligation‘)andwillcooperateinenforcingthem:providedthatIfthethirdpartymanufacturerfailstohonortheThirdPartyObligation,ContractorwillprovidetheStateMthindemnityprotectionequaltothatcalledforbytheThirdPartyObligation,butinnoeventgreaterthanthatcalledforinthelirstsentenceofthisSection.TheprovisionsoftheprecedingsentenceapplyonlytothirdpartycomputerHardwareorSoftwaresoldasadistinctunitandacceptedbytheState.

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CALIFORNIAMULTIPLEAW ARDSCHEDULES(CMAS)GENERALPROVISIONS-INFORMATIONTECHNOLOGY D)
UnlessaThirdPartyObligationprovidesotherwise.thedefenseandpaymentobligationssetforthinthisSectionwillbeconditionaluponthefollowing:i)TheStatevvlilnotifytheContractorofanysuchclaimInwritingandtenderthedefensethereofwithinareasonabletime;andii)TheContractorwillhavesolecontrolofthedefenseofanyactiononsuchclaimandallnegotiationsforitssettlementorcompromise;providedthat(a)whensubstantialprinciplesofgovernmentorpubliclawareInvolved,whenlitigationmightcreateprecedentaffectingfutureStateoperationsorliability,orwheninvolvementoftheStateisotherwisemandatedbylaw,theStatemayparticipateinsuchactionatitsownexpensewithrespecttoattomei/s‘feesandcosts(butnotliability);(b)whereasettiernentwouldImposeliabilityontheState,affectprinciplesofCalifomlagovemmentorpubliclaw,orimpacttheauthorityoftheState,theDepartmentofGeneralSerwceswillhavetherighttoapproveordisapproveanysettlementorcompromise,whichapprovalwillnotunreasonablybewithheldordelayed;and(c)theStatewillreasonablycooperateinthedefenseandInanyrelatedsettlementnegotiations.ShouldtheDeliverables,ortheoperationthereof,become.orintheContractorsopinionarelikelytobecome,thesubjectofaclaimofinfringementorviolationofaU5.IntellectualPropertyRight,theStateshallperrrrittheContractoratitsoptionandexpenseeithertoprocurefortheStatetherighttocontinueusingtheDeliverables,ortoreplaceormodifythesamesothattheybeccrnenon-infringing.Ifnoneoftheseoptionscanreasonablybetaken,oriftheuseofsuchDeliverablesbytheStateshallbepreventedbyinjunction,theContractoragreestotakebacksuchDeliverabiesandmakeeveryreasonableefforttoassisttheStateinprocuringsubstituteDeliverabies.If,inthesoleopinionoftheState.theretumofsuchinfringingDeliverablesmakestheretentionofotherDeliverablesacquiredfromtheContractorunderthisContractimpractical,theStateshallthenhavetheoptionofterminatingsuchContracts,orapplicableportionsthereof,withoutpenaltyorterminationcharge,TheContractoragreestotakebacksuchDeliverablesandrefundanysumstheStatehaspaidContractorlessanyreasonableamountforuseordamage.TheContractorshallhavenoliabilitytotheStateunderanyprovisionofthisclausewithrespecttoanyclaimofpatent,copyrightortradesecretinfringementwhichisbasedupon:(i)ThecombinationorutilizationofDeliverablesfurnishedhereunderwithEquipment,SoftwareordevicesnotmadeorfumlshedbytheContractor,or,(ii)TheoperationofEquipmentfumlshedbytheContractorunderthecontrolofanyOperating Softwareotherthan,orinadditionto,thecurrentversionofContractor-suppliedOperatingSoftware;or(Iii)Themodi?cationinitiatedbytheState,orathirdpartyattheStatesdirection,ofanyDeliverablefumlshedhereunder.or(iv)ThecombinationorutilizationofSoftwarefumlshedhereunderwithnon~ContractorsuppliedSoftware.TheContractorcerti?esthatithasappropriatesystemsandcontrolsinplacetoensurethatStatefundsMilnotbeusedIntheperformanceofthisContractfortheacquisition,operationormaintenanceofcomputerSoftwareinviolationofcopyrightlaws.

44.DISPUTES:a)
D)
Thepartiesshalldealingoodfaithandattempttoresolvepotentialdisputesinforrnaiiy.ifthedisputepersists,theContractorshallsubmittotheDepartmentDirectorordesigneeawrittendemandfora?naldecisionregardingthedispositionofanydisputebetweenthepartiesarisingunder,relatedtoorinvolvingthisContract.Contractorswrittendemandshallbefullysupportedbyfactualinformation,anditsuchdemandinvolvesacostadjustmenttotheContract,ContractorshallincludewiththedemandawrittenstatementsignedbyanauthorizedpersonIndicatingthatthedemandismadeingoodfaith,thatthesupportingdataareaccurateandcompleteandthatthearncuntrequestedaccuratelyreflectstheContractadjustmentforwhichContractorbelievestheStateisliable,ThecontractingDepartmentDirectorordeslgneeshallhave30dawafterreceiptofContractorswrittendemandinvokingthisSection‘Disputes’torenderawrittendecision.Ifawrittendecisionisnotrenderedwithin30daysafterreceiptofcontractorsdemand,itshallbedeemedadecisionadversetotheContractorscontention.IftheContractorisnotsatis?edwiththedecisionoftheDepartmentDirectorordesignee,theContractormayappealthedecision,inwriting,within15daysofitsissuance(ortheexpirationofthe30dayperiodintheeventnodecisionisrenderedbythecontractingdepartment),totheDepartmentofGeneralSemces,DeputyDirector,ProcurementDivision,whoshallhave45daystorendera?naldecision.IftheContractordoesnotappealthedecisionofthecontractingDepartmentDirectorordesignee,thedecisionshallbeconclusiveandbindingregardingthedisputeandtheContractorshallbebarredfromcommencinganactionincourt.orwiththeWctimsCompensationGovernmentClaimsBoard,forfailuretoexhaustContractorisadministrativeremedies.Pendingthe?nalresolutionofanydisputearisingunder,relatedtoorinvolvingthisContract.Contractoragreestodiligentlyproceedwiththeperformanceofthiscontract.includingthedeliveryofGoodsorprovidingofservicesinaccordancewiththeState'sinstructionsregardingthis REVISEDANDEFFECTNEMARCH15,2013 PAGE12OF30

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CALIFORNIAMULTIPLEAW ARDSCHEDULES(CMAS)GENERALPROVISIONS-INFORMATIONTECHNOLOGY Contract.ContractorsfailuretodiligentlyproceedinaccordancewiththeState’:instructionsregardingthisContractshallbeconsideredamaterialbreachofthisContractc)Any?naldecisionoftheStateshallbeexpresslyidenti?edassuch,shallbeInwriting,andshallbesignedbytheDeputyDirector.ProcurementDivisionifanappealwasmade.iftheDeputyDirector,ProcurementDivisionfallstorendera?naldecisionwithin45daysafterreceiptofContractorsdemand,itshallbedeemeda?naldecisionadversetoContractorscontentions.TheState's?naldecisionshallbeconclusiveandbindingregardingthedisputeunlessContractorcommencesanactionInacourtofcompetentjurisdictiontocontestsuchdecisionwithin90daysfollowingthedateofthe?naldecisionorone(1)yearloilc/Mngthe‘accrualofthecauseofaction.whicheverislater,d)FordisputesinvolvingpurchasesmadebytheDepartmentofGeneralServices.ProcurementDivision.theContractorshallsubmittotheDepartmentDirectorordesigneeawrittendemandfora?naldecision,whichshallbefullysupportedinthemannerdescribedInthesubsectionaabove.TheDepartmentDirectorordesigneeshallhave30daystorendera?naldecision.ifa?naldecisionisnotrenderedwithin30daysafterreceiptoftheContractorsdemand,itshallbedeemeda?naldecisionadversetotheContractorscontention.The?naldecisionshallbeconclusiveandbindingregardingthedisputeunlesstheContractorcommencesanactioninacourtofcompetentjurisdictiontocontestsuchdecisionwithin90daysfollowingthedateofthe?naldecisionorone(1)yearfollowingtheaccrualofthecauseofaction,whicheverislater.Thedatesofdecisionandappealinthisseaionmaybemodi?edbymutualconsentasapplicable.exceptingthetimetocommenceanactioninacourtofcompetentjurisdiction.

45.STOPWORK:a)TheStatemay,atanytime.bywrittenstopworkOrdertotheContractor.requiretheContractortostopall,oranypart.oftheworkcalledforbythisContractforaperiodupto45daysaftertheStopWorkOrderisdeliveredtothecontractor.andforanyfurtherperiodtowhichthepartiesmayagree.TheStopWorkOrdershallbespeci?callyidenti?edassuchandshallindicateitisissuedunderthisdause.UponreceiptoftheStopWorkOrder,theContractorshallimmediatelycomplywithitstermsandtakeallreasonablestepstominimizethelncurrenceofcostsallocabletotheworkcoveredbytheStopWorkOrderduringtheperiodofworkstoppage.Withinaperiodof45daysafteraStopWorkOrderisdeliveredtotheContractor,orwithinanyextensionofthatperiodtowhichthepartiesshallhaveagreed,theStateshalleither:(I)CanceltheStopWorkOrder;or (ii)TerminatetheworkcoveredbytheStopWorkOrderasprowdedforinthetenninationfordefaultortheterminationforconvenienceclauseofthisContract.b)ifaStopWorkOrderissuedunderthisclauseiscanceledortheperiodoftheStopWorkOrderoranyextensionthereofexpires,theContractorshallresumework.TheStateshallmakeanequitableadjustmentinthedeliveryschedule.theContractprice,orboth,andtheContractshallbemodified.Inwriting.accordingly,If.(I)TheStopWorkOrderresultsinanIncreaseinthetimerequiredfor.orintheContractorscostproperlyallocabletotheperformanceofanypartofthisContract;and(ii)TheContractorassertsitsrighttoanequitableadjustmentwithin60daysaftertheendoftheperiodofworkstoppage;provided,thatiftheStatedecidesthefactsjus?fytheaction,theStatemayreceiveandactuponaproposalsubmittedatanytimebefore?nalpaymentunderthisContract.c)ifaStopWorkOrderisnotcanceledandtheworkcoveredbytheStopWorkOrderisterminatedInaccordancewiththeprovisionentitledTerminationfortheConvenienceoftheState,theStateshallallowreasonablecostsresultingfromtheStopWorkOrderinarrivingattheterminationsettiementd)TheStateshallnotbeliabletotheContractorforlossofpro?tsbecauseofaStopWorkOrderissuedunderthisclause..EXAMINATIONANDAUDIT:ContractoragreesthattheState.oritsdesignatedrepresentativeshallhavetherighttoreviewandcopyanyrecordsandsupportingdocumentationpertainingtoperformanceofthisContract.TheContractoragreestomaintainsuchrecordsforpossibleauditforaminimumofthree(3)yearsafter?nalpayment,unlessalongerperiodofrecordsretentionisstipulated.TheContractoragreestoallowtheauditorts)accesstosuchrecordsduringnormalbusinesshoursandinsuchamannersoastonotinterfereunreasonablywithnormalbusinessactivitiesandtoallowinterviewsofanyemployeesorotherswhomightreasonablyhaveinfonnationrelatedtosuchrecords.Further.ContractoragreestoincludeasimilarrightoftheStatetoauditrecordsandInterviewstaffinanysubcontractrelatedtoperionnanceofthisContract.TheStateshallprovidereasonableadvancewrittennoticeofsuchaudit(s)totheContractor.

47.FOLLOW-ONCONTRACTS:a)iftheContractororitsa?iliatesprovidesTechnicalConsultingandDirection(asde?nedbelow),theContractoranditsaffiliates:(I)willnotbeawardedasubsequentContracttosupplytheserviceorsystem,oranysigni?cantcomponentthereof.thatisusedfororinconnectionwithany REVISEDANDEFFECTIVEMARCH15,2018 PAGE13OF30