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HomeMy WebLinkAbout12/04/1990, C-4 - CONTRACT COPY SERVICES y�l�Illllll�I � � MATING DATE: Cl ��I I IiUli l i i O SA LU1 S OBIS130 ENGeill�I� COUNCIL, AGENDA REPORT 'NUMBER: FROM: Ps, City Clerk i SUBJECT: CO CT COPY SERVICES CAO RECOMMENDATION By motion, approve the Request for Proposal (RFP) for contract copy services and authorize the CAO to award contract to the most responsive contractor if the average cost per copy is less than 4.5 cents per copy. DISCUSSION The City currently contracts with an outside copy service for approximately 50% of the City's copy needs. These contract services are used for the larger reproduction needs of the City such as Council Agenda Reports, Commissions Reports, Budget Reports, and other large copy needs. The major benefit to the City is the labor savings. More than 90,000 copies are made offsite monthly through the copier contract compared with 94,000 copies made onsite. The recently approved copier policy (Attachment A) includes an analysis of copier volumes and performance for onsite equipment as well as addressing the City's contract copier services. Recent bids for onsite copiers reflect the following per copy costs: Paper $0.0080 Maintenance, Supplies, and Depreciation $0.0236 Total $0.0316 The costs shown above do not include the cost of labor. During 1989-90, the City was able to obtain contract reproduction services (for basic "black and white" copying) for 3.4 cents per copy, including labor, which is a major savings. Accordingly, the City will continue to maintain the practice of sending major copy jobs to a contractor to save costs and labor. Normally, a major reproduction job is considered to be a job of more than 10 copies. The current contract with Kinko's is due to expire. Accordingly, the Staff will request proposals from local copy service firms in the City. Selection will be made on the basis of the most responsive bid with consideration being given to cost per copy, frequency of pickup, use of recycle paper, and current customer satisfaction. Under the City's purchasing guidelines for RFPs, although cost is a major consideration, other criteria will be considered in determining the most responsive proposal. This year, the specification requires the vendor to stipulate under Special Copying Services that white bond must contain at least 25% recycled material. With respect to color bond, offset, textured, bright/florescent, card and cover paper, the City is requesting recycled content where possible. This is consistent with the recently adopted Recycled Product Procurement Policy. ;''II ci O tY Sd11 WIS OBISPO COUNCIL AGENDA REPORT CONCURRENCES The Management Information Committee and Director of Finance concur with the recommendation to request proposals for contract copy services. I FISCAL IMPACT AND ALTERNATIVES The award of a contract to a copy service vendor is to allow for blanket purchasing by City Departments based on their need for copier services and monies approved in their operating budget. As such, the award of a copy service contract does not directly impact the City's budget. During the past year, $55,700 was paid to the City's current service contractor (Kinko's). I Not using a copier services contract would require the City to purchase additional copiers, j incur additional maintenance costs, hire additional personnel, and locate appropriate equipment and bulk storage space. Due to these factors, contracting large reproduction orders is a more cost-effective approach in meeting a large portion of the City's copying needs. SUMMARY i The use of contract copying services is recommended in meeting 50% of the City's basic reproduction needs. The current service agreement with Kinko's is due to expire and accordingly, it is recommended that the Council approve the Request for Proposal and authorize the CAO to award contract to the most responsive contractor if the average cost per copy is less than 4.5 cents per copy. i I Attachments A. Copier Policy The Request for Proposal is on file in the City Clerk's Office. AI)MIN'ISIIZATION1)EI'.11t'IT11iN'1. JI.I('1' A11?MOItnNl)UM Attachments. ^Management of City Copying Nccds ( )OVERVIEW This policy addresses the City of San Luis Obispo's document reproduction program, both in-house and off-site. The purpose of the policy is to casure that documents are reproduced in an efficient and effective manner. The policy will take effect upon approval of the City Administrative Officer,and will be reviewed annually when the off-site copy contract is renewed. The policy will be administered by the Technical Systems Coordinator. POLICY I. In-house and off-site copying volume guidelines. Generally, it is more cost effective to send copying services to the City's off-site copying services contractor. Therefore, copying of documents requiring 10 or more topics of a single sheet and not needing the copies for 6 to 24 hours, should be sent out. Labor,equipment,and maintenance factors make this more economical and efficient. For immediate copying needs,,the city will provide for at least three operations! levels of walk-up copiers for use within individual departments and divisions General guidelines are provided below. A. OFF-SITE COPYING: Any volume greater thaw 10 copies. This includes small numbers of copies of large documents Le. 2 copies of a 15 page document. B. IN-HOUSE COPYING: ANY volume over 10 copier should ONLYbe done in-house when timeliness or confidentiality pmvent rhe document from being sent ouL Taking that into consideration. the three levels of in-house copiers should be used as follows: OLarge Copiers 50 copies or under. Medium Copiers 30 copies or under. Small Copier 10 copies or under. I.I. Acquisition of Copy Machines. A. Funding for all copy machine acquisitions will come from other the Equipment Replacement Fund, Capital Improvement Plan,or the Organizational Support Services Operating Program budget,consistent with Financial Plan Policies. B. During the analysis of copy machine needs and bid evaluation% cost will only be one factor among many to be considered. C The choice of lease, rent, lease/purchase or purchase will be used for each copy machine acquisition as best benefits the City in each situation. D. The Technical Systems Coord;-iator will establish and administer a replacement cycle policy for all copy machines. As a part of that replacement policy,funds for copy machines to be purchased will be included in the Equipment Replacement Fund program where applicable. 1 17x,9 III. St.in,l.ird Slncirications for Copy Machines. 'nccrc arc 4 levels of copy machines which will be considered for use by the City. At the time that need of a new machine is established, an analysis of the specific users' requirements will be done to determine which category is appropriate The levels are: A. VERY HIGHSPEED/VOLUME: Target use: centralized copy services for Citywide copying. Target volume per month: 50,000 copies and up. e B. HIGH SPEED/VOLUME: Target use: central copy site for large number of users; multiple divisions and departments; high volume and quick turnaround time nems. Target City volume per month: 25,000 to 50,000 topics. Industry rating 50,000 topics/month. C. MEDIUM VOLUME. Target use: divisional or isolated site main copier. Target City volume per month: 10,01x1 to 25,000 topics. Industry rating: 30,000 copies/month D. LOW VOLUME Target use: secondary copier in department or site with high demand for more than one copier, or need for very simple single sheet copying. Target City volume per month: 0 to 10,000 copies. Industry rating: 10,000 topics/month. IV. Management and Operation of In-house Copiers. A. Management.• The Technical Systems Coordinator will manage the City's on-site copy equipment. This includes developing copier poGdcs,receiving new copier requests,coordinating the analysis and procurement of any and all copiers, coordinating trouble calls, managing maintenance agreements, and coordinating key operators: B. Maintenance: All copiers owned, leased, or rented by the City will be:covered by a 3rd parry maintenance agreement, provided by a vendor certified to work on the spec machine's brand. C. Operation: Each copy machine will have a 'Key Operator,or'Key Operators', appointed by the Departmer. Head(s) of the department(s)/division(s)/site(s) who it/are the main user(s) of the equipment. The Key- Operator(s) will be thoroughly trained in the use and routine maintenance of the copy machine, and will be responsible for a. Performing routine weekly maintenance and cleaning. b. Serving as the users' main contact for problems encountered with the equipment. c. Calling the Maintenance vendor for service when problems are encountered. d. Informing the Technical Systems Coordinator of severe or repetitive equipment problems c. Obtaining consumable supplies from the central storage area. D. Supplies: The City Administrative Officer will designate a department responsible for bulk ordering of consumable supplies, such c.s paper and toner. ALL copy machine "sites will use supplies ordered by this departmcni. Each sites' Key Operator will be responsible for arranging delivery of supplies to their copier. V. Managnmenr of Off-site copy contract The Technical Systems Coordinator will be responsible for implementing and administering the off-site copy contract. APPROVED: Citj Administr ive Officer 1 Date 2 �hc_� CITY OF SAN LUIS OBISPO REQUEST FOR PROPOSALS C . (Specification No. CC-90-62) NOTICE IS HEREBY GIVEN THAT the City Clerk of the City of San Luis Obispo, State of California, will receive sealed bids pursuant to Specification No. F061990 at the City Clerk's Office, City Hall, 990 Palm Street, on , at which time they will be publicly opened and read aloud, for the purchase of the following supplies, material, and/or services: Contract Copy Services Proposals received after said time will not be considered. Each proposal shall be submitted in a sealed envelope plainly marked: "Proposal for Copy Services, Specification No. CC-90-62" Each proposal shall be made out on a proposal form as provided. A copy of which may be obtained from the City Clerk. Prices shall include State and local sales taxes separately identified. The City of San Luis Obispo reserves the right to accept such proposal or proposals as may be deemed most advantageous to the City, the right to waive any informality in a proposal, and the further right to reject any and all proposals. Additional information may be obtained by contacting Pam Voges at (805) 549-7103. Pam Voges, City Clerk San Luis Obispo, California C L'r�'J TABLE OF CONTENT Page General Proposal Terms and Conditions 1-3 Special Terms and Conditions 4-5 Specifications 6-8 Proposal & Submission Forms 9-10 Statement of Qualifications & References 11 Purchase Agreement 12-14 r� GENERAL PROPOSAL TERMS AND CONDITIONS O1. Requirement to Meet All Proposal Provisions - Each proposal shall meet all of the specifications and proposal terms and conditions. By virtue of the proposal submission and acceptance of the proposal award, the proposer acknowledges agreement with and acceptance of all provisions of the specifications, except as expressly qualified in the proposal. Nonsubstantial deviations may be considered provided that the proposer submits a full description and explanation of, and justifications for, the proposed deviations. Final determination of any proposed deviation will be made by the City of San Luis Obispo. 2. Proposal Submission - Each proposal must be submitted on the form(s) provided in the proposal package. Proposal documents shall be enclosed in an envelope which shall be sealed and addressed to the City Clerk, City of SAN LUIS OBISPO, 990 Palm St., SAN LUIS OBISPO, California 93403-8100. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, name of proposer, and date and time of proposal opening. 3. Proposal Retention and Award - The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive nonsubstantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that the proposals are qualified by specific limitations, and to make award as the interest of the City may require based on the criteria identified in Special Terms and Conditions. G4. Proposal Quotes and Unit Price Extensions - The extensions of unit prices for the quantities indicated and the lump sum prices quoted by the proposer must be entered in figures in the spaces provided on the Proposal Submission Form(s). Any lump sum price shall be stated in figures. The Proposal Submission Form(s) must be completed in full. If the unit price and the total amount stated by the proposer for any item are not in agreement, the unit price alone will be considered as representing the proposer's intention and the total will be corrected to conform to the specified unit price. 5. Proposal Withdrawal - A proposer may withdraw his/her proposal, without prejudice prior to the time specified for the opening, by submitting a written request to the City Clerk for its withdrawal, in which event the proposal will be returned to the proposer unopened. No proposal received after the time specified or at any place other than the place stated in the "Request for Proposals" will be considered. All proposals will be opened and declared publicly. Proposers or their representatives are invited to be present at the opening of the proposals. 6. Submission of One Proposal Only - No individual or business entity of any kind shall be allowed to make or file, or to be interested in, more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity which has submitted a sub-proposal to a proposer submitting a proposal, or who has quoted prices on materials to such proposer, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other proposers submitting proposals. C` 1 7' Contract Requireme - The proposer to whom award is.*-- s. ide shall execute a written contract with th&-City within ten (10) calendar days ah& notice of the award has been sent by mail to it at the address given it its proposal. The Contract shall be made in the form adopted by the City and incorporated in these specifications. The proposer warrants that he/she possesses, or has arranged through subcontracts, all capital and other equipment, labor and materials to carry out and complete the work hereunder in compliance with all Federal, State, County, City and Special District Laws, ordinances, and Regulations which are applicable. 8. Failure to Accept Contract - If the proposer to whom the award is made fails to enter into the contract: the award will be annulled; any proposal security will be forfeited in accordance with the Special Proposal Terms and be made to the next lowest responsible proposer who shall fulfill every stipulation as if it were the party to whom the first award was made. 9. Contract Assignment - The proposer shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, of its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City of San Luis Obispo. 10. Non-Discrimination - In the performance of the terms of this contract, the proposer agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, or religion of such person. 11. Work Delays - Should the successful proposer be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other act of God, or by the inability to obtain materials, equipment, or labor due to Federal Government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the successful proposer. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at that time of acceptance of the work, waive liquidated damages which may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such verbal, and making a finding as to the causes of same. 12. Labor Actions - In the event that the successful proposer is experiencing a labor action at the time of the award of the proposal (or if its suppliers or subcontractors are experiencing a labor action), the City reserves the right to declare that said proposer is no longer a responsible proposer, and to select another proposer that is not experiencing a labor action. 13. Sales Tax Allocation - For sales occurring within the City of San Luis Obispo, the City is reimbursed one-sixth of the 6 1/4% sales tax paid. Therefore, for proposals from retail firms located in the City of San Luis Obispo at the time of proposal closing for which sales tax is allocated to the City of San Luis Obispo, 1% of the taxable amount of the proposal will be deducted from the proposal by the City in making price comparisons between proposals. 2 /f 14. Communications Regarding Proposal= All timely requests for information submitted in writing will receive a written response from the City. Telephone O communications with City staff are not encouraged, but will be permitted. However, such verbal communication shall not be binding on the City. 15. Business Tax - All proposers should be aware of the City's Business Tax Ordinance which requires that a Business Tax Receipt be obtained before any business, trade, profession, enterprise, establishment, occupation, or calling is conducted within the City. The amount of the tax is based on gross receipts resulting from business conducted in the City of SAN LUIS OBI.SPO, and is required to be paid when business is conducted in the City even though the principal location of the business may be outside of the City ora Business Tax Receipt has been issued to them by another city..Issuance of a Business Tait Receipt is only evidence of the fact that the tau has been paid; it does not sanction or approve any operation not otherwise permitted. Verification that the proposer has a valid City of SAN LUIS OBISPO Business Tax Receipt will be obtained by the City prior to the execution of the lease contract. Additional information regarding the City's Business Tax program may be obtained by calling (805) 549-7134. 16. Payment Terms - The City's payment terms are 30 days from the,receipt of an original invoice referencing the City's purchase order number and acceptance of the materials, supplies, equipment, or services (Net 30). Payment will only be released earlier for payment discounts and acceptance of materials, supplies, equipment or services. O O 3 A41- 1 SPECIAL TERMS AND CONDITIONS 1. Contract Term. The prices provided for these items must be valid for a period of one year unless otherwise conditioned by the Contractor as an exception to the Proposal. The prices specified by the successful contractor may be renegotiated between the City and the successful Contractor within 90 days if the City picks up an option to renew the agreement for a second year. Increases in the renegotiated prices are not to exceed the annual percentage change in the U.S. Consumer Price Index- All Urban Consumers (CPI-U) for the most recent period for which this information is available prior to renewal. 2. Non-Exclusive Contract. The City reserves the right to purchase services listed in the RFP Submission Form, as well as any supplemental items or services, from contractors during the contract term. 3. Recycle Paper. The contractor will be required to guarantee that white bond paper contains 25% recycled content. CONTRACTOR RESPONSIBILITIES 1. Release of reports and information. Any reports, information, data, or other material given to, prepared by, or assembled by the Contractor under this Agreement shall be the property of the City and shall not be made available to any individual or organization by the Contractor without the prior written consent of the City. 2. Qualification of Contractor. The contractor will provide the City with a list of at least three (3) references to verify the quality and timeliness of services included within the scope of the specifications to be provided. The City reserves the right to contact each of the references listed for additional information regarding your firms's. qualifications. 3. Deadlines. Regularly scheduled jobs (such as Agendas) are to be delivered within 24 hours of pick-up. All other work will be produced in a timely manner, meeting the deadline listed on the copy order. If the deadline cannot be met, the Contractor will notify the person ordering the job before beginning. If the Contractor is unable to meet the required deadline, the City may take the job elsewhere for reproduction. Each job will be returned to the City with a completed copy of the work. order with the following information provided on the form: a. Contractor's name, address, and work order number. b. Name and customer number of the department ordering the job. c. Title and description of the job. d. Number of copies required. e. Itemized list of special materials and services. D 4 C'-y-A 1. O 4. Quality Control. The Contractor will take the necessary steps to insure that the work is produced without errors or omissions, and that a consistent level of high quality is maintained. Unacceptable work which is the fault of the Contractor will either be re-run or repaired at no charge to the City. 5. Protection of Materials. The Contractor will take the necessary precautions to protect the City property from loss, damage, theft or unauthorized use. 6. Control of Service Orders. The Contractor will insure that copy services as stated in this Agreement are provided to only authorized departments,.commissions, agencies, and individuals. 7. Contractor Invoices. The Contractor shall deliver a monthly invoice to the City, itemized by up to 20 cost centers, with attached copies of work order forms as supporting detail. 8. Trade Customs. Except as noted in the Agreement, legally-accepted "trade customs" applied to the printing trades will be observed. 9. Conflict of Interest. The Contractor certifies that no one who has or will have any financial interest under this Agreement is an officer or employee of the City. It is expressly agreed that, in performing these services, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. C10. Insurance. The Contractor shall provide proof of liability insurance as follows: a. Employer's Liability Insurance $1,000,000 b. Commercial General Liability Insurance $1,000,000 per occurrence (including coverage for liability for damage to City property in the Contractor's care, custody and control) c. Commercial Automobile Liability Insurance $1,000,000 per occurrence CITY RESPONSIBILITIES 1. Preparation of originals. Material submitted for copying shall be properly prepared to the standards required by the Contractor. 2. Work Order. The City will provide a copy of the job order for each job requested, listing the required services. 3. Pick-up/Drop-off Points. The City will provide specified location(s)where the material will be picked up and delivered. 4. Quality Control. The City will examine all jobs to ensure that the job has been properly Cproduced and returned. Unacceptable work will be returned to the Contractor. 5 SPECIFICATIONS NO CC-9042 Basic Copying Services ,� 1. Estimated copies per month is 90,000 (See page 8). 2. Minimum number of copies of an original will be one copy. 3. Maximum number of copies of an original will be unlimited. 4. -Cost for reproduction for black image reproduction should be based on 8-1/2" x 11" or 8-1/2" x 14" paper. (cost of copying will be separated from the cost of paper) 5. Machine collating will be provided at no additional charge. 6. Machine reduction or enlargement (64010 to 200%) will be provided at no additional charge. 7. Duplexing will be provided at no additional charge. 8. Minimum turn-around time will be 24 hours unless by special arrangement. Understandably, larger or complex jobs requiring binding, folding, drilling, padding, stapling, or special handwork will take longer to produce. Pickup and Delivery Service Standard Pickup and Delivery_ Pickup and delivery to City Hall will be provided by the contractor at no additional charge twice daily except on weekends and official City holidays: Morning Delivery: 10:00 - 10:30 a.m. Monday through Friday Afternoon Delivery: 3:00 - 3:30 p.m. Monday through Friday Optional Pickup and Delivery: If the City so elects, the contractor will provide pickup and delivery at an additional monthly cost to the City to the following locations beginning at 10:00 a.m. at City Hall and at 3:00 p.m. at City Hall Monday through Friday: 955 Morro Street (Public Works) 860 Pacific Street (Recreation Department) 748 Pismo Street (Fire Station No 1) 1042 Walnut (Police Department) . 25 Prado Road ( Corporation Yard) 6 �) SPECIFICATIONS NO CC-90-62 Special Copying Service Requirements 1. Color bond, offset, textured,bright/fluorescent,card or cover paper will be available. The City prefers to use paper with recycled content of at least 20% where possible.. 2. Plastic comb, velo, padding and wire-stitching services will be provided. 3. Drilling (2- or 3- hole in standard location) will be provided. 4. Parallel folding (letter or accordion) will be provided. 5. Where machine collating is not practical, hand collating services will be provided. Optional Services Provided Consideration will be given to those contractors able to provide additional specialized services such as full-color copying, large format copying (11 x 17) process camera work (PMT/Velox prints), typesetting, rubber stamps, business cards, NCR forms, and other graphic arts services at the best available prices offered other customers. O O7 e_y J ESTIMATED MONTHLY_ VO.� MES ESTIMATED MONTHLY VOLUMES -� White Bond (Recycled) 11" or 14" 78,000 J Color Bond 11" 69100 Color Bond 14" 100 Color Offset 11" 1,300 Color Offset 14" 100 Special Finish 11" 1,000 Special Finish 14" 100 Bright/Fluorescent 11" 700 Bright Fluorescent 14" 700 Card/Cover (Any Color) 11" 1 100 Card/Cover (Any Color) 14" 800 TOTAL COPIES 90,000 8 PROPOSAL SUBMISSION F�.-.M - Specification No CC-90-62 COPYING SERVICES ('The undersigned declares that he or she has carefully examined Specifications CC-90-62 accompanying the Request for Proposals and is thoroughly familiar with the contents thereof; is authorized to represent the vendor; and proposes to deliver the services requested at the prices stated below not including sales tax: BASIC COPYING CHARGES PER SIDE: UNIT PRICE Per Copy Cost (Does not include cost of paper) PAPER CHARGES: 1. White Bond (25% recycled content) per sheet 8-1/2"x 11 or 14" 2. Color Bond per sheet 8-1/2"x11 or 14" 8-1/2 x 14" 3. Card/Cover per sheet (Any Color) O8-1/2"x11" 8-1/2"x14" 4. Color Offset per sheet 8-1/211x 11" 8-1/2 x 14" 5. Special Finish per sheet 8-1/2"x11" 8-1/2"x14" 6. Bright/Fluorescent per sheet 8-1/2"X11" 8-1/2"xl4" 9 PROPOSAL SUBMISSION F._,_,M --Specification No CC-90-62 OTHER COPYING SERVICES: UNIT PRICE 1. Binding Plastic comb binding (Cerlox) Velo binding Saddle stitch staple (folded) Side/Corner stitch staple. (flat) 2. Drilling 2 or 3 holes per 1,000 sheets 3. Cutting or Trimming per cut 4. Padding per pad 5. Folding per 100 sheets 6. Copy Preparation per hour (unbinding, unstapling, organizing) 7. Attached are samples of copying typically required by the City. As part of the bid submission package, the bidder is required to provide one set of copies of this material. These copies will t used later to monitor quality if that vendor is the successful bidder. 8. List the optional services you are capable of providing. (See page 7) OPTIONAL PICK-UP AND DELIVERY: COST PER MONTH Delivery and pick-up twice daily beginning at City Hall to the following locations: 955 Morro Street (Public Works) 860 Pacific Street (Recreation Dept.) 780 Pismo Street (Fire Station #1) 1042 Walnut Street (Police Dept.) 25 Prado Road (Corporation Yard) 10 STATEMENT OF PROr%jSER'S QUALIFICATIONS O List and describe fully the last three contracts performed by your firm which demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for.additional information regarding your firm's qualifications. Reference No. 1 Customer Name: Contact Individual: Phone No: Address: Reference No. 2 Customer Name: Contact Individual: Phone No: OAddress Reference No. 3 Customer Name: Contact Individual: Phone No: Address: Signature of Authorized Representative Date C� 11 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , 1990, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as CITY, and the , hereinafter referred to as CONTRACTOR. WITNESSETH WHEREAS, on , 1990; CITY invited proposals for the procurement of copy services per Specification No. CC-90-62. WHEREAS, pursuant to said invitation, CONTRACTOR submitted a proposal which was accepted by CITY for said services. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, and shall remain in effect for a period of one (1) year. At the end of one year, the City may, at its option renew the contract for an additional one year period. If the contract is renewed for a second year,prices may be renogiated between the CITY and CONTRACTOR within 90 days of the second year renewal subject to an increase no greater than the annual percentage change in the U.S. Consumer Price Index - All Urban Consumers (CPI-U) for the most recent period for which this information is available prior to renewal. _ 2. INCORPORATION BY REFERENCE. The Notice Inviting Proposals,the General Bid Terms and Conditions, the Special Bid Terms and Conditions, Bid Submission Form(s), and the Bid Specifications, are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For furnishing services as specified in this Agreement, CITY will pay and CONTRACTOR shall receive therefor payment based upon the actual quantities ordered and received by CITY and the unit prices bid by CONTRACTOR. Payment to the CONTRACTOR shall be made within 30 days after receipt of an original invoice from the CONTRACTOR and acceptance of the service by CITY. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by CITY, CONTRACTOR agrees with CITY to furnish the services and to do everything required by this Agreement and the said specifications. Without limiting the generality of the foregoing, CONTRACTOR warrants on behalf of itself and all subcontractors engaged for the performance of this Agreement that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 12 5. HOLD HARMLESS .CJD INDEMNIFICATION. CONTk"CTOR agrees to defend, indemnify, and hold harmless CITY, its officials, officers, employees, representatives, and agents, from and against all claims, lawsuits, liabilities or damages of whatsoever nature arising out of or in connection with, or relating in any manner to any act or omission of O CONTRACTOR, its agents, employees, and subcontractors of any tier and employees thereof in connection with the performance or non-performance of this Agreement. The CONTRACTOR shall thoroughly investigate any and all claims and indemnify the CITY and do whatever is necessary to protect the CITY, its officials, officers, employees, agents, and representatives, as to any such claims, lawsuits, liabilities, expenses, or damages. 6.. TERMINATION. Either party may terminate this Agreement at any time by providing thrity (30) days written notice of termination to the other parry. Upon such termination, Contractor shall return to the City all material not yet copied. Work-in-progress will be completed, delivered and billed as outlined in the Agreement. 7. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 8. ANII-DISCRIMINATION. In the performance of the terms of this Agreement, CONTRACTOR, agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, or religion of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735. 9. AUDIT. CITY shall have the option of inspecting and/or auditing all records and other written materials used by CONTRACTOR in preparing its statements to CITY as condition precedent to any payment to CONTRACTOR. 10. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: CITY: Pam Voges, City Clerk P.O. Box 8100 San Luis Obispo, CA 93403-8100 CONTRACTOR: 13 12. AUTHORITY TO 'XCUTE AGREEMENT. Both Cf. 'and CONTRACTOR do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF; the parties hereto have caused this instrument to be executed the day and year first above written. CITY: ATTEST: John Dunn, City Administrative Officer Pam Voges, City Clerk CONTRACTOR: APPROVED AS TO FORM: ity i for y APPROVED AS TO CONTENT: z ' L� Director of Finance City Clerk J 14 �'•y:2a