HomeMy WebLinkAboutAgreement A-25-144 Maintenance Agreement.pdf Agreement No. 25-144
MAINTENANCE AGREEMENT
THIS MAINTENANCE AGREEMENT ("Maintenance Agreement" or "Agreement") is
made effective as of April 22, 2025 between County of Fresno, through its Sheriffs Office
at 2200 Fresno Street, Fresno, CA 93721 ("County") and Hitachi Digital Services LLC, office at
2535 Augustine Drive, Santa Clara, California 95054 USA("Hitachi"). The Effective Date shall be
April 22,2025,
County desires to obtain maintenance services for the equipment that makes up its Video
Infrastructure Protection Program, as described in County Agreement No. zq 143 ("VIPP
Agreement").
Hitachi will supply the maintenance services described below("Services")to County with respect
to the products described in Section 4 below ("Equipment"), which Equipment shall collectively
constitute the "System."
NOW THEREFORE, in consideration of the terms of this Maintenance Agreement, the parties
agree as follows:
1.0. HITACHI RESPONSIBILITIES
1.1. Hitachi agrees, during the Maintenance Term, subject to the other terms of this
Maintenance Agreement, to keep and maintain the Equipment in satisfactory operation,
as defined by the Sheriffs Office, to make all repairs and adjustments to Equipment, and
to supply such parts as may be required which are incidental to the maintenance of the
Equipment. Such maintenance shall be provided to the Sheriff's Office at Hitachi's cost at
such Equipment's location.
1.2. Hitachi shall use commercially reasonable efforts to pass on the benefits of a
manufacturer's warranty with regard to Equipment that is in excess of the Maintenance
Term but still under the manufacturer warranty. With regard to any Equipment or any part
thereof that requires replacement during the Maintenance Term, the Equipment shall be
replaced at no additional charge to the County. With respect to defective Hitachi-installed
Equipment, Hitachi obligations will be limited to, at its sole option, repairing or replacing
such Equipment.
1.3. Hitachi will provide access on its web site and/or FTP site to all maintenance updates for
software and firmware that is part of the System to the County as soon as practical in the
ordinary course of business after commercial release of the same.
1.4. Hitachi will provide the County with maintenance updates which, in Hitachi's sole
determination, correct application problems that are reasonably likely to prevent
substantially full utilization of Hitachi Supplied Product(s).
1.5. Hitachi shall offer services for the then-current release of Hitachi Supplied Products.
Hitachi will also offer services for the release of Hitachi Supplied Products immediately
preceding the then-current release for not less than eight (08) months from the date of
such release.
1.6. Subject to the limitations and exclusions provided herein, all onsite support for all Hitachi
Supplied Products, personnel, engineering and technical resources, and labor and travel
expenses are included, and will be provided by Hitachi during the Maintenance Term.
1.7. Hitachi shall provide to the County Zendesk Ticketing System and a support email by which
County authorized personnel may request either remote support or on-site service ("Help
Desk"). The person taking the support ticket or email shall have the skill-set to answer the
County's technical questions, or have authority to contact a qualified service technician and
have him or her respond to the requestor's ticket or email within four(4) hours of the initial
service request. The person responding to the trouble ticket or email shall have the
authority to dispatch an on-site service technician to the County at the County's request.
Service issues that are unable to be resolved remotely during the initial ticket or email
request, shall be dispatched according to the following defined "Severity" levels. Hitachi
repairs will be handled remotely if the problem can be resolved remotely, and if that is
necessary, County shall authorize Hitachi to have"Remote Access" to the System. Hitachi
repairs will be handled remotely if the problem can be resolved remotely.
E-Mail: videosupport(a-)_hitachids.com
1.8. If Hitachi determines, in responding to the Sheriff's Office request for remote support, that
the solution is provided in the user guide, Hitachi may direct Sheriff's Office personnel to
the guide for the solution to the problem. If Sheriff's Office personnel are unable to solve
their problem after consulting the user guide, Hitachi support shall promptly assist Sheriff's
Office in resolving the problem.
1.9. Hitachi shall provide responses for each severity level as follows:
a. Severity Level - Urgent will be assigned at the County's discretion This request will
be approved by authorized Sheriff's Office personnel. This requires that, when a support request
is made by the Sheriff's Office authorized personnel, or upon opening a Zendesk service ticket,
requesting service, Hitachi shall be on-site at an agreed upon location in the County within four
(4) hours of the Sheriff's Office initial request for service. Onsite service will be scheduled during
normal working hours M-F (8AM to 5PM CST). County shall authorize Hitachi to have "Remote
Access" to the System. Hitachi repairs will be handled remotely if the problem can be resolved
remotely.
i. Severity Level - Urgent is defined as more than 10% of the System's cameras
being non-operational, or any cameras designated as high priority being non-
operational Technicians working on the system will contact the Sheriff's Office
authorized representative when any remote troubleshooting begins, when any
onsite visit is scheduled, and when work is completed.
b. Severity Level - High requires that, when a support request is made by the Sheriff's
Office authorized personnel requesting service, Hitachi shall respond on-site at an agreed upon
location, excluding weekends and County observed holidays, the next business day Monday -
Friday. However, when a request for service is received before 10 AM, service shall be on-site
the same business day. Sheriff's Office shall authorize Hitachi to have "Remote Access" to the
video System. Hitachi repairs can be handled remotely if the problem can be resolved remotely.
i. Severity Level — High is defined as one or more of the System's cameras being
non-operational.
c. Severity Level - Normal requires that when a support request is made by the
Sheriff's Office authorized personnel requesting service, Hitachi shall have a service technician
on-site at an agreed upon location Monday — Friday, excluding weekends and County observed
holidays within three (3) business days of the County requesting service. County shall authorize
Hitachi to have "Remote Access" to the video System. Hitachi repairs can be handled remotely if
the problem can be resolved remotely.
i. Severity Level — Normal is defined as one camera not working that is within a
group of cameras at the same location, and/or all non-video streaming and/or PTZ
control issues with the System.
1.10. Reporting on all issues, repairs and service tickets. Hitachi shall maintain and present
upon request, a log of all system issues, repairs and submitted service tickets from the
Sheriff's Office to Hitachi's reporting service.
1.11. Hitachi shall pay for all supplies and consumables, except media, utilized by in the
maintenance of the Equipment.
2.0. COUNTY RESPONSIBILITIES
2.1. County shall, as soon as possible, notify Hitachi of any Equipment malfunction requiring
maintenance. Notification should be made through the Hitachi Help Desk referenced in
Section 1.7 of this Maintenance Agreement.
2.2. Per the Sheriff's Office policies, access to Equipment in order to allow Hitachi to provide
maintenance will be prescheduled in advance with authorized Hitachi personnel.
2.3. Provide a Sheriff's Office representative to be present or able to respond if needed while
the Equipment is being serviced.
2.4. The County is responsible for any changes in operating systems, network setup, network
maintenance and setup and use of any file access control systems.
2.5. The Sheriff's Office shall provide Hitachi with remote access to the System. The remote
access will be set up so that Hitachi will have access as needed for troubleshooting and
configuration.
2.6. The Sheriff's Office shall ensure that its personnel have sufficient training to attain and
maintain competence in the operation of the System software.
2.7. The Sheriff's Office shall make available personnel to Hitachi for training on camera
operations and software and storage management system (as appropriate for their role).
2.8. The Sheriff's Office shall provide its personnel access to, and require its personnel to
review, the System software user guide before calling Hitachi telephone support. Hitachi
shall provide ten copies of the System Software user guide, as well as the appropriate
website for online reading.
2.9. County representative shall have the ability to use telephone, e-mail, chat and screen
sharing technology for all support incidents, including end-user support. In most cases,
the representative will be from the County Sheriff's Office.
2.10. All onsite scheduling of repair work is dependent upon weather, daylight, security factors,
and other factors, as determined by a Sheriff's Office Representative.
2.11. If Hitachi determines, in its sole discretion, in responding to the Sheriff's Office request for
telephone support, that the solution is provided in the use guide, Hitachi may direct
Sherriff's Office personnel to guide for the solution to the problem.
2.12. The Sheriff's Office is responsible for requesting any maintenance term extension. In the
event that the Sherriff's Office does not request and pay for a maintenance term extension,
Hitachi makes no guarantee that services will be supplied.
3. WARRANTIES
3.1. All (i) equipment, (ii) components, (iii) hardware and (iv) software and (v) peripherals
installed by Avrio, Hitachi, under County Agreement No. 10-651, as amended, and
installed under the VIPP agreement ("Hitachi Supplied Products") will be warranted
against material defect for the term described in Section 12 of the VIPP Agreement.
3.2. This Maintenance Agreement includes an eight-month full-service on-site service
warranty, which shall include service for Hitachi Supplied Products, personnel,
engineering and technical resources, labor, and all travel expenses. With respect to
defective Hitachi Supplied Products and workmanship, Hitachi obligations will be limited
to, at its sole option, repairing or replacing such product.
4.0 PRODUCTS COVERED IN AGREEMENT
This Maintenance Agreement shall cover all the equipment that was installed by Avrio and
Hitachi Data Systems under County Agreement No. 10-651, as amended, and all other
equipment that was installed by Hitachi ("Existing Equipment"), and the Equipment
provided by Hitachi under the VIPP Agreement ("Hitachi Equipment"), which together is
the "Equipment".
5.0 EXCLUSIONS FROM COVERED MAINTENANCE
The following labor and services shall be expressly excluded from the Equipment
maintenance provisions of Section 1 of this Maintenance Agreement, and shall be subject
to Hitachi normal rates as set forth in Section 10 for service and labor:
5.1. Services required due to change or alterations subsequent to the date of this Maintenance
Agreement in Equipment specifications not performed by Hitachi personnel.
5.2. Unauthorized installation, moving, or removing of the Equipment, options, attachments or
cables subsequent to the date of this Maintenance Agreement.
5.3. Replacement of parts, repair of damage or increase in service time to Equipment resulting
from fire, lightning, flood, wind, accident, theft, abuse, neglect, misuse, natural disaster, or
any causes other than ordinary use for which the Equipment was intended.
5.4. Electrical work external to the Equipment or maintenance of accessories, attachments or
other devices not listed on the Equipment list. This is exclusive of work performed by a
Hitachi-approved contractor.
5.5. Service or repair due to failure of electrical power, air conditioning or humidity control.
5.6. Refinishing of Equipment.
5.7. Specific requests by the Sheriff's Office for maintenance which are not included in the
description contained in Section 1, herein.
6.0 SOFTWARE RELATED PROBLEMS
Hitachi shall provide support for all problems that relate to software included in the Hitachi Supplied
Products. Upon a determination by Hitachi engineer that a problem is due to software not related
to Hitachi Supplied Products, and thereby excluded from the covered maintenance provisions of
this Maintenance Agreement, Hitachi will immediately notify the County, subject to Hitachi's normal
rates for service and labor, as set forth in Section 10.
7.0 UNAUTHORIZED SERVICE OF EQUIPMENT
The repair of the Equipment by anyone other than an authorized staff or agent of Hitachi or a
Hitachi approved contractor will, at Hitachi's option, because to void this Maintenance Agreement.
If such unauthorized repair occurs, and Hitachi chooses to void this Maintenance Agreement,
then the most recent prepayment made by the County pursuant to Section 10 of this Maintenance
Agreement may be forfeited by the County as liquidated damages.
8.0 BREACH OF MAINTENANCE AGREEMENT
8.1. Hitachi's failure to respond within two business days or to repair the Equipment to
County's satisfaction after two attempts will, at the Sheriff's Office option, constitute a breach of
this Maintenance Agreement, and shall be a reason to terminate this Maintenance Agreement, at
County's option. In such an event, the Sheriff's Office may issue a 30-day Notice of Termination
to Hitachi, and this Maintenance Agreement shall terminate upon the expiration of 30 days. If such
failure to satisfactorily respond or repair occurs, and the Sheriff's Office chooses to terminate this
Agreement, then the most recent prepayment made by the County pursuant to this Section 10 of
this Agreement shall be returned to the County as liquidated damages within 45 days of the
issuance of the Notice of Termination.
8.2. Non-Allocation of Funds — The terms of the Maintenance Agreement and the products
and services to be provided hereunder, are contingent on the approval of funds by the
appropriating government agency. Should sufficient funds not be allocated, the products and
services to be provided may be modified, or this Maintenance Agreement terminated, any time by
giving Hitachi thirty (30) days advance written notice.
9.0 TERM AND TERMINATION OF MAINTENANCE AGREEMENT
9.1 This Maintenance Agreement is in effect for a term of one (1) year ("Term"), with four
possible one-year extensions ("Maintenance Term"). During the Term of this Maintenance
Agreement, if County is satisfied with the maintenance services, County will provide written
notice to Hitachi at least thirty (30) days prior to the anniversary of this Maintenance Agreement
that County desires to extend the Term of this Maintenance Agreement by one year. The Sheriff,
or his or her designee, has authority to issue such extension notice.
The Sheriff's Office shall request any Term extension at least thirty (30) days prior to the
expiration of each annual Term of the Maintenance Agreement. If Sheriff's Office does not
request and pay for a maintenance Term extension, this Maintenance Agreement shall terminate.
9.2 This Maintenance Agreement can be terminated by either party by written notice to the
other, if the other party (i) breaches of confidentiality, intellectual property or export compliance;
(ii) commits material breach of any other terms and does not remedy that breach within thirty
(30) days of written notice to do so (iii) becomes or threatens to become Insolvent. If the
Maintenance Agreement is terminated, County's right, licenses and privileges under it will
terminate and County must comply with Hitachi's request to either remove and destroy all Hitachi
I in County's possession or control or return such material and items to Hitachi at County's cost.
Furthermore, County will not be relieved from its payment obligations and any money then
currently due to Hitachi will become immediately payable. Nether of parties deemed to have
waived any existing rights.
9.3 The terms of this Agreement are contingent on the approval of funds by the appropriating
government agency. If sufficient funds are not allocated, then the County, upon at least 30 days'
advance written notice to Hitachi, may:
(A) Modify the services provided by Hitachi under this Agreement via the mutually
agreeable Change Order process; or
(B) Terminate this Agreement.
9.4 Any termination of this Agreement by the County under this Section 9 is without penalty to
or further obligation of the County.
10. COMPENSATION
The County shall prepay annual compensation to Hitachi in an amount not to exceed One
Hundred Twelve Thousand, Nine Hundred and Thirty-Eight Dollars and Twenty-Four Cents,
($112,938.24) during the initial one-year Term for the services detailed in this Maintenance
Agreement. If additional extensions are added to the term of this Agreement, the County shall
prepay annual compensation to Hitachi in an amount not to exceed One Hundred Twelve
Thousand, Nine Hundred and Thirty-Eight Dollars and Twenty-Four Cents, ($112,938.24). This
lump sum annual payment shall be paid within forty-five (45) days of the date of invoice. In no
event shall the total compensation paid to Hitachi exceed five hundred sixty-four thousand, six
hundred ninety-one dollars and twenty cents($564,691.20)during the total possible five-year term
of this Maintenance Agreement.
Hitachi shall issue the payment invoice to County thirty (30) days prior to the anniversary date of
this Maintenance Agreement. The first annual payment shall be paid within forty-five (45) days of
execution of this Maintenance Agreement.
Any service and labor charges to service products not otherwise covered under the terms of this
Maintenance Agreement (i.e., non-Hitachi Supplied Products and products not covered by
Hitachi's warranty or the manufacturer's warranty) shall be charged by Hitachi at the following
rates: Mon-Fri $150.00/hr; Sat, Sun & Holidays $250.00/hr.
Hours billed after normal working hours (7am-6pm) will be billed at 1.5 times the hourly rate.
Travel expenses are additional, and shall be charged as one way travel time at normal hourly
rates.
All maintenance charges are exclusive of applicable federal, state or local taxes. Federal excise
taxes, State taxes, or the County sales taxes must not be included in the invoiced amount. The
County will furnish a tax exemption certificate upon request.
11.0 INDEMNIFICATION
A. Contractor's Indemnification: Hitachi agrees to indemnify, save, hold harmless and at
County's request, defend the County, its officers, agents, and employees from any
and all costs and expenses (including attorney's fees and cost), damages, liabilities,
claims, and losses occurring or resulting to County in connection with the
performance, or failure to perform, by Hitachi, its officers, agents, or employees under
this Maintenance Agreement, and for any and all costs and expenses (including
attorney's fees and cost), damages liabilities, claims, and losses occurring or resulting
to any person, firm, or corporation who may be injured or damaged by the
performance, or failure to perform, of Hitachi, its officers, agents, or employees under
this Maintenance Agreement.
B. Contractor's Indemnification Exclusions: Hitachi will not be liable to provide any of the
remedies in Section 11(A) for any claims related to the Maintenance Agreement that
County has, or any person on County's behalf has: (a) used in an unauthorized
manner; (b) modified without the express written consent of Hitachi; (c) failed to use
another version that has been made available to County and which would have
avoided the infringement.
12.0 INSURANCE
Hitachi, at its sole expense, shall maintain in full force and effect, the following insurance
policies or a program of self-insurance, including but not limited to, an insurance pooling
arrangement or Joint Powers Agreement (JPA)throughout the term of the Agreement:
12.1 Commercial General Liability
Commercial general liability insurance with limits of not less than Two Million Dollars
($2,000,000) per occurrence and an annual aggregate of Four Million Dollars ($4,000,000).
This policy must be issued on a per occurrence basis. Coverage must include products,
completed operations, property damage, bodily injury, personal injury, and advertising
injury. The Contractor shall obtain an endorsement to this policy naming the County of
Fresno, its officers, agents, employees, and volunteers, individually and collectively, as
additional insureds, but only insofar as the operations under this Agreement are
concerned. Such coverage for additional insureds will apply as primary insurance and any
other insurance, or self-insurance, maintained by the County is excess only and not
contributing with insurance provided under the Contractor's policy.
12.2 Automobile Liability
Automobile liability insurance with limits of not less than One Million Dollars ($1,000,000) per
occurrence for bodily injury and for property damages. Coverage must include any auto used
in connection with this Agreement.
12.3 Worker's Compensation
Workers compensation insurance as required by the laws of the State of California with
statutory limits.
12.4 Employer's Liability
Employer's liability insurance with limits of not less than One Million Dollars ($1,000,000) per
occurrence for bodily injury and for disease.
12.5 Technology Professional Liability (Errors and Omissions)
Technology professional liability (errors and omissions) insurance with limits of not less
than Two Million Dollars ($2,000,000) per occurrence and in the aggregate. Coverage must
encompass all of the Contractor's obligations under this Agreement, including but not
limited to claims involving Cyber Risks.
12.6 Cyber Liability
Cyber liability insurance with limits of not less than Two Million Dollars ($2,000,000) per
occurrence. Coverage must include claims involving Cyber Risks. The cyber liability policy
must be endorsed to cover the full replacement value of damage to, alteration of, loss of,
or destruction of intangible property (including but not limited to information or data) that
is in the care, custody, or control of the Contractor.
Definition of Cyber Risks. "Cyber Risks" include but are not limited to (i) Security Breach,
which may include Disclosure of Personal Information to an Unauthorized Third Party; (ii)
data breach; (iii)system failure; (iv)data recovery; (v)failure to timely disclose data breach
or Security Breach; (vi) failure to comply with privacy policy; (vii) payment card liabilities
and costs; (viii) infringement of intellectual property, including but not limited to
infringement of copyright, trademark, and trade dress; (ix) invasion of privacy, including
release of private information; (x) information theft; (xi) damage to or destruction or
alteration of electronic information; (xii) cyber extortion; (xiii) extortion related to the
Contractor's obligations under this Agreement regarding electronic information, including
Personal Information; (xiv)fraudulent instruction; (xv)funds transfer fraud; (xvi)telephone
fraud; (xvii) network security; (xiii) data breach response costs, including Security Breach
response costs; (xix) regulatory fines and penalties related to the Contractor's obligations
under this Agreement regarding electronic information, including Personal Information;
and (xx) credit monitoring expenses.
If the Contractor is a governmental entity, it may satisfy the policy requirements above through a
program of self-insurance, including an insurance pooling arrangement or joint exercise of powers
agreement.
12.7 Additional Requirements Relating to Insurance
(A) Verification of Coverage. Within 30 days after the Contractor signs this Agreement, and at
any time during the term of this Agreement as requested by the County, the Contractor
shall deliver, or cause its broker or producer to deliver, to the County of Fresno, at 2200
Fresno Street, Fresno, California 93721, or Sheriff.Contracts@fresnosheriff.org, and by
mail or email to the Project Manager to receive notices pursuant to Section 12.15 under
this Agreement, certificates of insurance and endorsements for all of the coverages
required under this Agreement.
(i) Each insurance certificate must state that: The Contractor has waived its right to
recover from the County, its officers, agents, employees, and volunteers any
amounts paid under any insurance policy required by this Agreement and that
waiver does not invalidate the insurance policy.
(ii) The commercial general liability insurance certificate must also state, and include
an endorsement, that the County of Fresno, its officers, agents, employees, and
volunteers, individually and collectively, are additional insureds insofar as the
operations under this Agreement are concerned. The commercial general liability
insurance certificate must also state that the coverage shall apply as primary
insurance and any other insurance, or self-insurance, maintained by the County
shall be excess only and not contributing with insurance provided under the
Contractor's policy.
(iii) The automobile liability insurance certificate must state that the policy covers any
auto used in connection with this Agreement.
(iv) The technology professional liability insurance certificate must also state that
coverage encompasses all of the Contractor's obligations under this Agreement,
including but not limited to claims involving Cyber Risks, as that term is defined in
this Agreement.
(v) The cyber liability insurance certificate must also state that it is endorsed, and
include an endorsement, to cover the full replacement value of damage to,
alteration of, loss of, or destruction of data that is in the care, custody, or control of
the Contractor.
(B) Acceptability of Insurers. All insurance policies required under this Agreement must be
issued by admitted insurers licensed to do business in the State of California and
possessing at all times during the term of this Agreement an A.M. Best, Inc. rating of no
less than A: VI I.
(C) Notice of Cancellation or Change. For each insurance policy required under this
Agreement, the Contractor shall provide to the County, or ensure that the policy requires
the insurer to provide to the County, written notice of any cancellation or change in the
policy according to policy provisions.
(D)Waiver of Subrogation. The Contractor waives any right to recover from the County, its
officers, agents, employees, and volunteers any amounts paid under the policy of worker's
compensation insurance required by this Agreement. The Contractor is solely responsible
to obtain any policy endorsement that may be necessary to accomplish that waiver, but the
Contractor's waiver of subrogation under this paragraph is effective whether or not the
Contractor obtains such an endorsement.
(E) County's Remedy for Contractor's Failure to Maintain. If the Contractor fails to keep in
effect at all times any insurance coverage required under this Agreement, the County may,
in addition to any other remedies it may have, suspend or terminate this Agreement upon
the occurrence of that failure, or purchase such insurance coverage, and charge the cost of
that coverage to the Contractor. The County may offset such charges against any amounts
owed by the County to the Contractor under this Agreement.
(F) Subcontractors. The Contractor shall require and verify that all subcontractors used by the
Contractor to provide services under this Agreement maintain insurance substantially
similar to those insurance requirements provided in this Agreement. This paragraph does
not authorize the Contractor to provide services under this Agreement using
subcontractors.
12.8 In the event Hitachi fails to keep in effect at all times insurance coverage as herein provided,
the County may, in addition to other remedies it may have, suspend or terminate this Agreement
upon the occurrence of such event.
12.9 All policies shall be issued by admitted insurers licensed to do business in the State of
California, and such insurance shall be purchased from companies possessing a current A.M.
Best, Inc. rating of A FSC VII or better.
12.10 LIMITATION OF LIABILITY
A. Uncapped Liability— Each party acknowledges the full extent of its own liability to the other
party for all losses arising from the following areas of liability: (a) death or personal injury
resulting from negligent acts or omissions; (b) claims for non-payment; (c) the non-
excludable statutory rights of consumers (for example, under laws providing for strict
product liability); (d)any infringement of Hitachi I including any Software license breaches;
(e) breaches of confidentiality obligations; (f) fraud or deceit under this Maintenance
Agreement.
B. Limits and Exclusions of Liability — (a) Subject to the other parts of this Section 12, to the
extent permitted by applicable law:
i. Each Party's maximum and aggregate liability arising out of or in connections with
this Maintenance Agreement in general will not exceed the greater of (A) the total
fees County has paid to Hitachi under this Maintenance Agreement during the
twelve (12) month period immediately before the date of the first event that gave
rise to the claim: and (B) Five Hundred Thousand US Dollars ($500,000); and
ii. Neither Party will be liable in any circumstances for : (i) any indirect, punitive,
special, incidental or consequential damages in connection with or arising out of
this Maintenance Agreement or (ii) whether direct or indirect, for loss of actual or
anticipated business, revenue, profit, savings, goodwill, loss of use, lost or
corrupted data lost or corrupted data, electronically transmitted order, or loss of
other economic advantage.
iii. The limitations and exclusions of liability in Sections 12(B) above, apply whether
such liabilities or claims arise under breach of contract (including anticipatory
breach or repudiation), tort (including negligence), statutory duty or otherwise
(including in equity or common law)and even if the liable party has previously been
advised of the possibility of such damages. Liability for damages will be limited and
excluded, even if an exclusive remedy provided for this Maintenance Agreement
fails of its essential purpose.
12.11 CONFIDENTIAL INFORMATION
A. Obligations
i. Each Party will (i) maintain the confidentiality of the other Party's
Confidential information that is disclosed to it, by using the same
degree of care that it uses to protect its own Confidential Information,
and in any event, a reasonable degree of care; (ii) only use that
Confidential Information for purposes related to this Maintenance
Agreement; and (iii) not disclose the other Party's Confidential
Information to a third party without the other Party's prior written
consent.
ii. Each Party may disclose the other Party's Confidential Information to
its personnel and/or Affiliates who need to know the information in order
to perform that Party's obligation under this Maintenance Agreement,
provided that party takes all reasonable steps to ensure compliance
with its confidentiality obligations including, where necessary, to
execute a written confidentiality agreement containing terms that are
no less restrictive than those in this section 12.11. The receiving Party
will be fully responsible for any confidentiality breach caused by its
personnel or its affiliates.
iii. If a Party has a legal requirement to disclose Confidential Information
of the other Party, that Party will, if permitted by applicable law, provide
the other Party with prompt prior written notice of this, so that the other
Party may seek a protective order or other limitation on disclosure. If a
legal requirement to disclose any Confidential Information nonetheless
remains on the Party, it may disclose that portion of the Confidential
Information that it is legally required to, without violation of this
Maintenance Agreement, but it will exercise commercially reasonable
efforts to minimize the disclosure, such as by redaction and to obtain
assurances that such Confidential Information will be treated
confidentially.
B. Return or Destruction
i. Except to the extent otherwise allowed in this Maintenance Agreement
and subject to Section 12.11 A, each Party will: (i)securely and promptly
destroy the other Party's Confidential Information that is in its
possession or control, together with all copes that have been made,
upon the termination of this Maintenance Agreement otherwise, at the
other Party's requested and (ii) promptly provide the other Party with
written certification when it is done. Notwithstanding the foregoing,
County may retain a copy of Hitachi's IP as necessary to exercise any
license rights granted to County pursuant to this Maintenance
Agreement. This Section 12.11 will survive the termination of this
Maintenance Agreement, with respect to the retained copy of Hitachi's
IP.
ii. Where it is not technically possible or practicable for a receiving Party
to access and destroy Confidential Information stored in an automatic
electronic archiving system, the receiving Party will cease to use that
Confidential Information and ensure that it is kept secure for the period
of retention, until it is eventually overwritten.
C. Equitable Relief
i. Each Party agrees and acknowledge that a breach of this section 12.11
will cause the disclosing Party irreparable damage for which remedies
other than injunctive relief will be inadequate, and agrees that the
disclosing Party will request injunctive or other equitable relief seeking
to restrain such use or disclosure, without limitation or waiver of any
other remedy available at law or in equity.
12.12 FORCE MAJEURE
Hitachi shall not be liable to the County for any delay or failure by Hitachi to perform its obligations
under this Maintenance Agreement if such delay or failure arises from any cause(s) beyond the
reasonable control of Hitachi, including third party labor disputes, third party strikes, other third
party labor or industrial disturbances, act of God, floods, lightning, earthquakes, unforeseen
shortages of materials, rationing, utility or communication failures, casualty, war, acts of public
enemy, riots, insurrections, embargoes, blockages, actions, restrictions, new or changed
regulations, or orders of any governmental agency or subdivision thereof.
12.14 GOVERNING LAW
Venue for any action arising out of or related to this Agreement shall only be in Fresno, California.
The rights and obligations of the parties and all interpretation and performance of this Agreement
shall be governed in all respects by the laws of the State of California.
12.15 NOTICES
The persons and their addresses having authority to give and receive notices under this
Agreement include the following:
For the County:
County of Fresno
Attention: Project Manager
2200 Fresno Street
Fresno, CA 93721
For Hitachi:
Hitachi Digital Services LLC
2535 Augustine Drive
Santa Clara, CA 95054
All notices between the County and Hitachi provided for or permitted under this Agreement must
be in writing and delivered either by personal service, by first-class United States mail, by an
overnight commercial courier service, or by telephonic facsimile transmission. A notice delivered
by personal service is effective upon service to the recipient. A notice delivered by first-class
United States mail is effective three County business days after deposit in the United States mail,
postage prepaid, addressed to the recipient. A notice delivered by an overnight commercial
courier service is effective one County business day after deposit with the overnight commercial
courier service, delivery fees prepaid, with delivery instructions given for next day delivery,
addressed to the recipient. A notice delivered by telephonic facsimile is effective when
transmission to the recipient is completed (but, if such transmission is completed outside of
County business hours, then such delivery shall be deemed to be effective at the next beginning
of a County business day), provided that the sender maintains a machine record of the completed
transmission. For all claims arising out of or related to this Maintenance Agreement, nothing in
this section establishes, waives, or modifies any claims presentation requirements or procedures
provided by law, including but not limited to the Government Claims Act (Division 3.6 of Title 1 of
the Government Code, beginning with section 810).
13.0 AUDITS AND INSPECTIONS
Hitachi shall at any time during business hours, and as often as the County may deem necessary,
make available to the County for examination all of its records and data with respect to the matters
covered by this Maintenance Agreement. Hitachi shall, upon request by the County, permit the
County to audit and inspect all of such records and data necessary to ensure Hitachi's compliance
with the terms of this Maintenance Agreement.
If this Maintenance Agreement exceeds ten thousand dollars ($10,000.00), Hitachi shall be
subject to the examination and audit of the California State Auditor for a period of three (3) years
after final payment under contract (Government Code Section 8546.7) subject to the term noted
above.
14.0 MODIFICATION
Any matters of this Maintenance Agreement may be modified from time to time by the written
consent of all the parties without, in any way, affecting the remainder.
15.0 NON ASSIGNMENT
Neither party shall assign, transfer or subcontract this Maintenance Agreement nor their rights or
duties under this Maintenance Agreement without the prior written consent of the other party.
Notwithstanding the previous sentence Hitachi may freely assign this Agreement without the
consent of County if there is a change of control of Hitachi in connection with a bona fide solvent
intra group reorganization of Hitachi.
16.0 INDEPENDENT CONTRACTOR
In performance of the work, duties and obligations assumed by Hitachi under this Maintenance
Agreement, it is mutually understood and agreed that Hitachi, including any and all of the Hitachi's
officers, agents, and employees will at all times be acting and performing as an independent
contractor, and shall act in an independent capacity and not as an officer, agent, servant,
employee, joint venturer, partner, or associate of the County. Furthermore, County shall have no
right to control or supervise or direct the manner or method by which Hitachi shall perform its work
and function. However, COUNTY shall retain the right to administer this Maintenance Agreement
so as to verify that Hitachi is performing its obligations in accordance with the terms and conditions
thereof.
Hitachi and County shall comply with all applicable provisions of law and the rules and regulations,
if any, of governmental authorities having jurisdiction over matters the subject thereof.
Because of its status as an independent contractor, Hitachi shall have absolutely no right to
employment rights and benefits available to County employees. Hitachi shall be solely liable and
responsible for providing to, or on behalf of, its employees all legally required employee benefits.
In addition, Hitachi shall be solely responsible and save County harmless from all matters relating
to payment of Hitachi's employees, including compliance with Social Security withholding and all
other regulations governing such matters. It is acknowledged that during the term of this
Maintenance Agreement, Hitachi may be providing services to others unrelated to the County or
to this Maintenance Agreement.
17.0 ELECTRONIC SIGNATURE
The Parties agree that this Maintenance Agreement may be executed by electronic signature as
provided in this section. An "electronic signature" means any symbol or process intended by an
individual signing this Maintenance Agreement to represent their signature, including but not
limited to (1) a digital signature; (2) a faxed version of an original handwritten signature; or (3) an
electronically scanned and transmitted (for example by PDF document) of a handwritten
signature. Each electronic signature affixed or attached to this Maintenance Agreement (1) is
deemed equivalent to a valid original handwritten signature of the person signing this Maintenance
Agreement for all purposes, including but not limited to evidentiary proof in any administrative or
judicial proceeding, and (2) has the same force and effect as the valid original handwritten
signature of that person. The provisions of this section satisfy the requirements of Civil Code
section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3,
Part 2, Title 2.5, beginning with section 1633.1). Each party using a digital signature represents
that it has undertaken and satisfied the requirements of Government Code section 16.5,
subdivision (a), paragraphs (1) through (5), and agrees that each other party may rely upon that
representation. This Maintenance Agreement is not conditioned upon the parties conducting the
transactions under it by electronic means and either party may sign this Maintenance Agreement
with an original handwritten signature.
18.0 ENTIRE AGREEMENT
This Maintenance Agreement constitutes the entire agreement between Hitachi and County with
respect to the subject matter hereof and supersedes all previous Maintenance Agreement
negotiations, proposals, commitments, writings, advertisements, publications, and understanding
of any nature whatsoever unless expressly included in this Maintenance Agreement.
IN WITNESS WHEREOF each of the parties has executed this Maintenance Agreement on the
date first shown above.
HITACHI DIGITAL SERVICES, LLC COUNTY OF FRESNO
4" sti Q gh
Finance controller Professional services - n
(Authorized Signing Authority) Ernest Buddy Mendes,phairman of the Board of
Revenue Performance analyst Supervisors of the County of Fresno
1/4/2024 Attest:
Bernice E. Seidel
3/17/2025 Clerk of the Board of Supervisors
County of Fresno, State of California
By:
Deputy
Accounting string:
Account: 7205
Fund: 0001
org: 31116396
Program: 0
subclass: 10000