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HomeMy WebLinkAbout31980Agreement 15-020 Contract between the County of Fresno and ECS Imaging Inc. Agreement 15-020 1 AGREEMENT 2 THIS AGREEMENT is made and entered into this 6th day of January , 2015, by and 3 between the COUNTY OF FRESNO, a political subdivision of the State of California, 4 hereinafter referred to as "COUNTY", and ECS Imaging Inc., whose corporate address is at 5 5905 Brockton Ave., Suite C, Riverside, CA 92506, hereinafter referred to as "CONTRACTOR". 6 7 RECITALS 8 WHEREAS, COUNTY desires to purchase software license, installation, training, data 9 conversion, and software maintenance of Laserfiche, from CONTRACTOR; as set forth in the 10 COUNTY's Request for Proposal (RFP) 962-5267, dated May 22,2014; and 11 WHEREAS, CONTRACTOR represented, via its Response to COUNTY's RFP No 962-5267, 12 dated July 10, 2014, that the software license, installation, training, data conversion, and 13 software maintenance of Laserfiche from CONTRACTOR, along with professional services from 14 CONTRACTOR would meet the stated needs of the COUNTY; and 15 WHEREAS, COUNTY desires to purchase from CONTRACTOR continuous maintenance and 16 support for Laserfiche; and 17 WHEREAS, COUNTY and CONTRACTOR desire to execute this Agreement for the purchase 18 of the right to use the software license, and maintenance and support of the Laserfiche 19 software. 20 NOW, THEREFORE, for and in consideration of the promises herein, and for other good and 21 valuable consideration, the parties agree as follows: 22 23 W I T N E S S E T H 24 I. DOCUMENTS CONSTITUTING AGREEMENT 25 This Agreement includes COUNTY's RFP No 962-5267, and CONTRACTOR's Response to 26 RFP No 962-5267. The originals of COUNTY'S RFP No 962-5267 and CONTRACTOR's 27 Response to RFP No 962-5267 shall be maintained by COUNTY's Purchasing Department 28 located at 4525 N. Hamilton, Fresno, California and are incorporated herein by reference. - 1 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 II. DEFINITIONS The following terms used throughout this Agreement shall be defined as follows: Acceptance Criteria: The performance and operating specifications which the System must meet at a minimum, as set out or referred to in this Agreement. Acceptance Test: The process of testing a specific function or functions to determine if the operation or operations are as stated in this Agreement. Change Control Process: Process used by the Information Technology Services Division of COUNTY's Internal Services Department (ITSD) to inform staff of new or updated production use systems. County System Hardware: The central processing units owned or leased by COUNTY which are described in this Agreement on which COUNTY is licensed to use the System Software, any back-up equipment for such central processing units, and any peripheral hardware such as terminals, printers, and Personal Computers as described in this Agreement. Final System Acceptance: When it is determined by COUNTY that all necessary deliverables have been delivered, the data has been converted, the base Laserfiche software has been successfully installed and tested, and the Laserfiche performs all functions in accordance with its specifications. First Production Use: Date of first use of the system in a production environment. License: The meaning assigned to the term 'License" as defined in Section 111-A of this Agreement and the rights and obligations which it creates under the laws of the United States of America and the State of California including without limitation, copyright and intellectual property law. - 2 - 1 Monies: 2 The terms "Monies", "Charges", "Price", and "Fees" will be considered to be equivalent. 3 Public Records: 4 Public Records includes any writing containing information relating to the conduct of the 5 public's business that is prepared, owned, used, or retained by any state or local agency, 6 regardless of physical form or characteristics. 7 Supplier: 8 The terms "Supplier", "Vendor", and "ESC Imaging Inc." all refer to CONTRACTOR and 9 are considered to be equivalent throughout this Agreement. 10 System: 11 The System Software and System Documentation, collectively. Reference to the 12 "System" shall include any component thereof. All modifications and enhancements to 13 the System shall be deemed to be part of the System as defined herein and shall be 14 subject to all terms and conditions set forth herein. The System consists of Laserfiche, 15 which supports various Fresno County departments, all interfaces, and third party 16 software required for the system to function. 17 System Documentation: 18 The documentation relating to the System Software, and all manuals, reports, brochures, 19 sample runs, specifications and other materials comprising such documentation provided 20 by CONTRACTOR in connection with the System Software pursuant to this Agreement. 21 System Operation: 22 The general operation of COUNTY's hardware and all software including, but not limited 23 to, system restarts, configuration and operation of system peripherals (such as printers, 24 modems, and terminals), installation of new software releases, and other related 25 activities. 26 System Installation: 27 All software has been delivered, has been physically loaded on a Computer, and 28 COUNTY has successfully executed program sessions. - 3 - 1 System Software: 2 Laserfiche, that certain computer software described in this Agreement provided by 3 CONTRACTOR, and all interfaces, coding, tapes, disks, modules and similar materials 4 comprising such software or on which it is stored. System Software shall not include 5 operating system software, or any other Third-Party Software. 6 User: 7 The terms "User", "Customer'' and "Licensee" all refer to COUNTY and are considered 8 to be equivalent throughout this Agreement. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ill. A) OBLIGATIONS OF THE CONTRACTOR SOFTWARE LICENSE 1) GRANT OF LICENSE CONTRACTOR grants to COUNTY and COUNTY accepts a non-exclusive, non-transferable, perpetual license to use Laserfiche that is subject to the terms and conditions set forth in this Agreement. 2) SCOPE OF LICENSE The license granted herein shall consist solely of the non-exclusive, non- transferable right of COUNTY to operate the System Software in support of various COUNTY departments, including COUNTY's Probation Department and Department of Public Health. 3) OWNERSHIP The parties acknowledge and agree that, as between CONTRACTOR and COUNTY, title and full ownership of all rights in and to the System Software, System Documentation, and all other materials provided to COUNTY by CONTRACTOR under the terms of this Agreement shall remain with CONTRACTOR. The parties acknowledge and agree that, as between CONTRACTOR and COUNTY, full ownership of all rights in and to all COUNTY -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 data, whether in magnetic or paper form, including without limitation printed output from the System, are the exclusive property of COUNTY. 4) POSSESSION, USE AND UPDATE OF SOFTWARE COUNTY agrees that only COUNTY will use the System Software for its own internal purposes. CONTRACTOR may, at reasonable times, inspect COUNTY's premises and equipment to verify that all of the terms and conditions of this license are being observed. CONTRACTOR may create, from time to time, updated versions of the System Software and System Documentation and CONTRACTOR shall make such System Updates available to COUNTY. All System Updates shall be licensed under the terms of this Agreement. COUNTY agrees to follow the prescribed instructions for updating System Software and System Documentation provided to COUNTY by CONTRACTOR. COUNTY must authorize all System Updates in writing. 5) TRANSFER OF SOFTWARE COUNTY shall not rent, lease, license, distribute, sell, transfer, or assign this license, the System Software, or the System Documentation, or any of the information contained therein other than COUNTY data, to any other person or entity, whether on a permanent or temporary basis, and any attempt to do so will constitute a breach of this Agreement. No right or license is granted under this Agreement for the use or other utilization of the licensed programs, directly or indirectly, for the benefit of any other person or entity, except as provided in this Agreement. 6) POSSESSION AND USE OF SOURCE CODE Source code and other material that results from custom programming by CONTRACTOR released to COUNTY under this license shall be deemed CONTRACTOR software subject to all of the terms and conditions of the software license set forth in this Agreement. The scope of COUNTY's permitted use of the custom source code under this license shall be limited to maintenance and support -5 - 1 2 3 4 5 6 7 8 9 of the System Software. For purposes of this Section, the term "maintenance and support" means correction of System Software errors and preparation of System Software modifications and enhancements. If COUNTY creates computer code in the process of enhancing the System Software, that specific new code shall be owned by COUNTY and may be used by COUNTY's employees, officers, or agents for COUNTY's own internal business operations. However, if COUNTY's enhancement results in the creation of a derivative work from the System Software, the copyright to such derivative work shall be owned by CONTRACTOR and COUNTY's rights to use such derivative work shall be limited to those granted with 10 respect to the System Software in this Agreement. 11 B) SERVICES TO BE PROVIDED BY CONTRACTOR TO COUNTY 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1) SYSTEM INSTALLATION CONTRACTOR shall supply and install Laserfiche in accordance with this Agreement. Such software installation shall include hardware/network review and recommendations, consultation, software installation and remote technical support. 2) TRAINING CONTRACTOR will conduct "train-the-trainer" training of COUNTY staff at a COUNTY-designated location and at a time approved in writing by COUNTY as specified in CONTRACTOR's Response to RFP No 962-5267. 3) DOCUMENTATION CONTRACTOR shall provide to COUNTY Laserfiche System Documentation, which shall consist of electronic media files. The electronic media files must be printable using PC software normally available at COUNTY. CONTRACTOR shall provide new System Documentation corresponding to all new Software Upgrades. COUNTY may print additional copies of all documentation. All 26 System Documentation is to be used by COUNTY only for the purposes identified 27 within this Agreement. 28 C) SYSTEM MAINTENANCE AND SUPPORT BY CONTRACTOR - 6 - 1 System maintenance and support includes System Updates as they are released by 2 CONTRACTOR, including updates as required as a result of Federal Regulatory Changes. 3 The first day of production use will be identified by COUNTY and communicated to 4 CONTRACTOR. CONTRACTOR will support day-to-day operation of the System as 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 follows: 1) SUPPORT HOURS/SCOPE: Provide technical assistance by phone during normal coverage hours (7:30 a.m. to 5:00 p.m. Pacific Standard Time (PST), Monday through Friday, except CONTRACTOR and COUNTY holidays), toll-free telephone assistance to keep the System in, or restored to, normal operating condition. The object of this support will be to answer specific questions related to the System Software and the application thereof. Support provided under this Agreement does not include training of new personnel (after initial staff is trained), operation of hardware, or solving other hardware/software problems unrelated to the System Software. 2) SUPPORT RESPONSE: During the term of this Agreement, CONTRACTOR will (a) correct any error or malfunctions in the System as supplied by CONTRACTOR which prevents it from operating in conformance with the specifications set forth in this Agreement or (b) provide a commercially reasonable alternative that will conform to the specifications set forth in this Agreement. If analysis by CONTRACTOR indicates a reported problem is caused by a reproducible error or malfunction in the then-current release of the System Software as supplied and maintained by CONTRACTOR that significantly impacts effective use of the System by COUNTY, CONTRACTOR will, if the System is inoperable, as reported by COUNTY, provide continuous effort to correct the error or to resolve the problem by providing a circumvention. In such cases, CONTRACTOR will provide COUNTY with corrective information, such as corrective documentation and/or program code. CONTRACTOR will -7 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 endeavor to respond to COUNTY's service request no later than four (4) business hours from the time a call has been received by CONTRACTOR. In the event that a person with the necessary expertise is not available when the call is received, CONTRACTOR will endeavor to respond to the service request no later than within one (1) business day. 3) REMOTE VIRTUAL PRIVATE NETWORK (VPN) DIAGNOSTICS Remote VPN Diagnostics Support includes: a. Diagnostic or corrective actions necessary to restore proper Laserfiche operation; b. Diagnostic actions which attempt to identify the cause of system problem; c. Correction of data file problem; and d. Laserfiche modifications CONTRACTOR product specialists will provide diagnostics via VPN on Laserfiche. COUNTY will provide any required hardware and equipment necessary at COUNTY for CONTRACTOR VPN support. 4) ERROR CORRECTION PROCESS: If during the term of this Agreement COUNTY determines that software error(s) exist, COUNTY will first follow the error procedures specified in the System Documentation. If following the error procedures does not correct the software error, COUNTY shall immediately notify CONTRACTOR, setting forth the defects noted with specificity. Upon notification of a reported software error, CONTRACTOR shall have five (5) days to determine if any actual software error exist and, if so, endeavor to correct such software errors. At CONTRACTOR's request, additional time to solve difficult problems will not be unreasonably withheld. Within fifteen (15) days of correction, COUNTY shall retest the System Software and report any other software errors. - 8 - 1 2 3 4 5) TECHNICAL INFORMATION CONTRACTOR will provide technical information to COUNTY from time to time. Such information may cover areas such as Laserfiche usage, third party software, and other matters considered relevant to COUNTY by CONTRACTOR. 5 Technical information will be provided at the discretion of CONTRACTOR, but will 6 not be unreasonably withheld. 7 D) ADDITIONAL SYSTEM MAINTENANCE SERVICES BY CONTRACTOR 8 CONTRACTOR may provide additional maintenance services ("Additional 9 Maintenance and Support Services" or "Additional Maintenance Services") at an additional 1 0 charge. Charges will be as identified in Section VII-G of this Agreement; or, if not included 11 in this Agreement, charges will be at current prices in effect at the time goods or services 12 are provided. Any Additional Maintenance and Support Services requested by COUNTY 13 and determined by CONTRACTOR to be billable by CONTRACTOR must be identified as 14 a chargeable service prior to the service being performed and must be approved in writing 15 in advance by COUNTY's Contract Administrator. Additional Maintenance Services 16 include, but are not limited to, the following: 17 1) ADDITIONAL TRAINING 18 A specific amount of training is specified in this agreement. Additional 19 training at a County facility is available upon request by COUNTY at an additional 20 charge under the terms of this Agreement. Requests for additional training will be 21 reviewed by CONTRACTOR and must be requested in writing in advance by 22 COUNTY's Contract Administrator. Charges will be at rates identified in this 23 Agreement. 24 2) DATA AND SYSTEM CORRECTIONS 25 Data and System Corrections include any corrective actions accomplished 26 by CONTRACTOR on-site or via VPN which are necessary due to COUNTY errors 27 or unauthorized source code or data access by COUNTY. Unauthorized access to 28 the data is defined as any COUNTY editing of data through other than normal - 9 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 system usage as defined in System Documentation. Unauthorized access to source code is defined as any COUNTY access whatsoever to system source code. Services provided by CONTRACTOR are not billable when they result from errors caused by MyAvatar, Laserfiche, Mobile or instruction provided by CONTRACTOR. 3) CUSTOMER SITE VISITS Site visits to COUNTY sites, as may be requested in writing by COUNTY and that are within the scope of the project services, are available for reasons such as, but not limited to, (1) additional system training on hardware or software usage; (2) resolution of system difficulties not resulting from actions by, or otherwise the responsibility of CONTRACTOR (as determined by mutual agreement between CONTRACTOR and COUNTY); (3) installation of Software Releases; and (4) assistance in equipment maintenance, movement or diagnosis. Site visits outside of the scope of project services will be reviewed by CONTRACTOR and must be requested in writing in advance by COUNTY's Contract Administrator. Charges will be at rates identified in this Agreement. 4) CUSTOM PROGRAMMING Requests for supplemental programming or customization of system features not covered under this Agreement are available to COUNTY. Such requests will be reviewed by CONTRACTOR and must be requested in writing in advance by COUNTY's Contract Administrator. Charges will be at rates identified 22 in this Agreement. 23 E) CONTRACTOR PROJECT COORDINATOR 24 Upon execution of this Agreement, CONTRACTOR shall appoint a Project Coordinator 25 who will act as the primary contact person to interface with COUNTY for implementation of 26 Laserfiche. 27 F) SYSTEM UPDATES AND NEW PRODUCTS 28 1) SYSTEM UPDATES -10- 1 2 3 4 5 6 7 8 9 10 11 12 From time to time CONTRACTOR will develop and provide System Updates to COUNTY for the COUNTY'S licensed CONTRACTOR software. System Updates shall be subject to the terms and conditions of this Agreement and shall be deemed licensed System Software hereunder and will be made available to COUNTY at no additional charge to COUNTY. System Updates will be made available to COUNTY at the discretion of CONTRACTOR but will not be unreasonably withheld. 2) NEW PRODUCTS CONTRACTOR may from time to time release new software with capabilities substantially different from or greater than the System Software ("New Products") and which therefore do not constitute System Updates. These New Products will be made available to COUNTY at a cost not to exceed 13 CONTRACTOR's then standard rates for customers similarly situated. 14 G) OPERATING SYSTEM UPDATES 15 The application must run on an operating system (0/S) that is consistently and 16 currently supported by the operating system vendor. Applications under maintenance are 17 expected to always be within 1 year of current in regards to the 0/S. Outdated or 18 unsupported 0/S will not be implemented on the production network. 19 COUNTY will notify CONTRACTOR when a critical security patch is released. 20 CONTRACTOR will have 30 days to ensure application can perform in the updated 21 environment. With approval from CONTRACTOR, COUNTY will apply patches to both the 22 operating system, and non-critical security subsystems as releases are available from 23 operating system vendors. The application is expected to perform in this environment. 24 CONTRACTOR is expected to keep their software within 1 year of current in order to 25 operate in this environment. 26 H) ANTI-VIRUS MANAGEMENT 27 COUNTY will actively run anti-virus management, where appropriate, on all application 28 servers and PCs. The application is expected to perform adequately while anti-virus -11 - 1 management is active. 2 I) ADHERE TO CHANGE CONTROL PROCESS 3 CONTRACTOR must adhere to COUNTY's Change Control Process, which shall be 4 provided to CONTRACTOR in writing. COUNTY employs a procedure to implement 5 updates, upgrades, and version releases to a system that is in production use. This forum 6 allows ITSD to inform staff (Help Desk, Network, Server, Database, Security, and 7 Analysts) of upcoming changes to a production system. CONTRACTOR must inform 8 ITSD a minimum of 1 week prior to any planned, non-emergency changes so that the 9 Change Control Process may be followed. 10 J) OTHER 11 Unless otherwise specified, for third-party software, CONTRACTOR shall provide 12 standard documentation in electronic form (via the Internet or File Transfer Protocol 13 (FTP)). 14 The system being provided runs in a Local Area Network and Web environment. As such, 15 the performance of the system is directly related to, among other things: available network 16 bandwidth, and the performance of other applications. For this reason, CONTRACTOR 17 makes no guarantees as to system response time. 18 19 IV. OBLIGATIONS OF THE COUNTY 20 A) COUNTY CONTRACT ADMINISTRATOR 21 COUNTY appoints its Chief Information Officer (CIO) or his designee, as COUNTY's 22 Contract Administrator with full authority to deal with CONTRACTOR in all matters 23 concerning this Agreement. 24 B) SAFEGUARDING SYSTEM SOFTWARE 25 COUNTY will follow its present practices to safeguard System Software delivered to 26 COUNTY by CONTRACTOR. A copy of COUNTY'S "Information Technology (IT) 27 Standards and Preferences" will be made available upon request. 28 C) BACKUP AND RECOVERY MANAGEMENT -12- 1 COUNTY utilizes a backup and recovery system written and maintained by Commvault 2 Systems. This application requires a backup agent to run on the server. 3 COUNTY will provide the vendor with an account with appropriate administrative rights 4 to administer the application. The account password is expected to periodically expire. 5 In order for the application to run on COUNTY supported servers, the application must 6 not require the users to have administrative rights on the servers. 7 COUNTY, at all times, during and after the performance of the installation of the 8 System Software, is responsible for maintaining adequate data backups to protect against 9 loss of data. 10 D) ACCEPTANCE TESTING 11 COUNTY shall approve Final System Acceptance when Laserfiche has been 12 successfully tested and satisfactorily performs all functions necessary pursuant to this 13 Agreement, and all deliverables identified in this Agreement as required for acceptance 14 have been received by COUNTY. 15 E) ACCEPTANCE TESTING PROCESS 16 Following delivery and installation, CONTRACTOR shall test Laserfiche along with 17 COUNTY personnel. 18 F) FACILITIES AND PREPARATION 19 COUNTY will at its own expense provide all necessary labor and materials for site 20 preparation, electrical services, and cabling required for System Installation. COUNTY 21 shall receive the System Software and will follow instructions provided by CONTRACTOR 22 to load it on COUNTY's System Hardware to prepare the System for processing. 23 G) SYSTEM HARDWARE AND SYSTEM SOFTWARE 24 COUNTY will at its own expense provide and properly maintain and update on an on- 25 going basis all necessary COUNTY System Software and County System Hardware 26 required to operate Laserfiche. Said COUNTY System Software and County System 27 Hardware shall meet or exceed CONTRACTOR's recommendations. 28 -13- 1 As part of COUNTY's responsibility for computer infrastructure, COUNTY is 2 responsible for ensuring that data is secure and protected at all times. CONTRACTOR is 3 not responsible for and cannot be held liable for inadvertent data disclosure or theft from 4 COUNTY facilities. 5 H) COUNTY PROJECT MANAGER 6 Upon execution of this Agreement, COUNTY's Contract Administrator shall designate 7 one individual from ITSD who will function as Project Manager with responsibility for day- a to-day management of the project for implementation of Laserfiche. The Project Manager 9 and COUNTY personnel shall have the necessary and appropriate training and 10 experience to implement the terms of this Agreement. COUNTY acknowledges 11 CONTRACTOR'S reliance on same. 12 I) OTHER COUNTY OBLIGATIONS 13 Technical assistance from COUNTY's ITSD staff will be provided during the 14 performance of the installation of the System Software. In particular, COUNTY will 15 provide: 16 a. Network connectivity and troubleshooting assistance. 17 b. Ability to monitor network traffic and isolate bottlenecks. 18 c. Technical assistance concerning the integration with existing COUNTY 19 systems (if applicable). 20 d. Expertise to handle issues with PCs, printers, and cabling before, during, 21 and after rollout. 22 v. TERM 23 This Agreement shall become effective on the date first written hereinabove for a term of 24 three (3) years, and may be renewed by COUNTY for a maximum of two (2), one (1) year 25 periods, upon provision of written notice by the Director of the Probation or his/her designee, or 26 Department Director of Public Health or his/her designee, and payment of Annual Maintenance 27 Fees. 28 -14- 1 2 VI. A) TERMINATION NON-ALLOCATION OF FUNDS 3 The terms of this Agreement, and the services to be provided thereunder, are 4 contingent on the approval of funds by the appropriating government agency. Should 5 sufficient funds not be allocated, the services provided may be modified, or this 6 Agreement terminated, at any time by giving the CONTRACTOR thirty (30) days advance 7 written notice. 8 B) BREACH OF CONTRACT 9 The COUNTY may immediately suspend or terminate this Agreement in whole or in part, 10 where in the determination of the COUNTY there is: 11 1) An illegal or improper use of funds; 12 2) A failure to comply with any term of this Agreement; 13 3) A substantially incorrect or incomplete report submitted to the COUNTY; 14 4) Improperly performed service. 15 In no event shall any payment by the COUNTY constitute a waiver by the COUNTY of any 16 breach of this Agreement or any default which may then exist on the part of the 17 CONTRACTOR. Neither shall such payment impair or prejudice any remedy available to 18 the COUNTY with respect to the breach or default. The COUNTY shall have the right to 19 demand of the CONTRACTOR the repayment to the COUNTY of any funds disbursed to 20 the CONTRACTOR under this Agreement, which in the judgment of the COUNTY were 21 not expended in accordance with the terms of this Agreement. The CONTRACTOR shall 22 promptly refund any such funds upon demand. 23 CONTRACTOR may, upon thirty (30) days prior written notice to COUNTY, terminate 24 this Agreement if COUNTY fails to comply with any material term or condition of this 25 Agreement unless COUNTY cures such failure within such thirty (30) day period, or other 26 such timeframe as may be mutually agreed upon in writing by the parties. 27 C) WITHOUT CAUSE 28 Under circumstances other than those set forth above, this Agreement may be -15- 1 terminated by COUNTY upon the giving of thirty (30) days advance written notice of an 2 intention to terminate to CONTRACTOR. 3 4 VII. COMPENSATION/INVOICING 5 COUNTY agrees to pay CONTRACTOR and CONTRACTOR agrees to receive 6 compensation as follows: 7 A) ONE-TIME FEES FOR CONVERSION, INSTALLATION, TRAINING, AND 8 PROJECT MANAGEMENT FOR PROBATION 1. Software Installation 2. Laserfiche Server Application 3. Workstation Licenses (35 @ $660) 4. Data Conversion 5. Training (16 Hours total-8 for Admin, 8 for Data Entry) 6. Discount Total One-time fees $12,000.00 $50,000.00 $23,100.00 $31,500.00 $3,000.00 ($7,310.00) $ 112,290.00 9 10 11 12 13 14 15 16 B) ONE-TIME FEES FOR CONVERSION. INSTALLATION, TRAINING. AND 17 PROJECT MANAGEMENT FOR PUBLIC HEALTH 18 19 20 21 22 23 24 25 26 27 28 1. Software Installation 2. Laserfiche Server Application 3. Workstation Licenses (23 @ $660) 4. Data Conversion 5. Training (16 Hours total-8 for Admin, 8 for Data Entry) 6. Discount Total One-time fees C) PAYMENT SCHEDULE FOR ONE-TIME FEES 1. 30% upon all parties signing this Agreement. 2. 20% upon System Installation of Licenses. 3. 20% upon completion of training. -16- $12,000.00 $50,000.00 $15,180.00 $45,000.00 $3,000.00 ($6.518.00) $ 118,662.00 1 4. 30% upon COUNTY's First Production Use. 2 D) NOT TO EXCEED AMOUNT FOR ONE-TIME FEES 3 It is understood and agreed that the dollar figures listed hereinabove for one-time fees 4 include applicable taxes which may be subject to change during the period for scheduled 5 payments. In no event shall services performed under this Agreement exceed $230,952 6 for one-time fees. 7 8 9 10 11 12 E) ANNUAL MAINTENANCE AND SUPPORT FEES: 1. Probation Annual Maintenance Fee 2. Department of Public Health Annual Maintenance Fee 3. Annual Maintenance Fee for other County Departments Total Annual Maintenance F) FEE CHANGES $12,394 $8,263 $75,351 $96,008 13 CONTRACTOR may increase Annual Maintenance and Support fees for years 2-5 of 14 this Agreement, upon thirty (30) days' advance written notice to COUNTY, provided 15 CONTRACTOR shall not increase such fees more than once in any one year period, and 16 provided further that each increase will not exceed the previous fees by the lesser of three 17 percent (3%) per year or (ii) the cumulative percentage increase in the Consumer Price 18 Index, All Urban Consumers for the U.S., during the previous year. 19 G) ADDITIONAL SERVICE FEES/PRICING 20 Interfaces will be negotiated at the time they are needed and will be agreed upon by both 21 parties in writing. All Laserfiche software requires the purchase of annual maintenance at 22 a cost of 20% of the listed Laserfiche software price. This cost applies to the initial 23 purchase (first year) and every year thereafter. Optional, additional services and software 24 25 26 27 28 may include, but are not limited to: 1. On-site System Consulting or Training I day 2. Remote Billable Services I hour 3. Laserfiche Rio Named Full Users (1 00-199 users) 4. Laserfiche Rio Named Full Users (200-499 users) -17- $ 1,500.00 $ 175.00 $700.00 $600.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5. Laserfiche Rio Named Full Users (500-999 users) $500.00 6. Laserfiche Rio Named Retrieval users (200-999 users) $200.00 7. Laserfiche Weblink Pilot Portal (25 retrieval users) $25,000.00 8. Laserfiche Weblink Portal (unlimited retrieval users -1 CPU) $45,000.00 9. Laserfiche Weblink Portal (unlimited retrieval users -2CPU) $50,000.00 10. Laserfiche Weblink Portal (unlimited retrieval users-3CPU) $75,000.00 11. Laserfiche Forms Full Users (25-49 users) $90.00 12. Laserfiche Forms Full user (50-99 users) $83.00 13. Laserfiche Forms Full User (100-199 users) $70.00 14. Laserfiche Forms Portal Add-on 15. Laserfiche Forms Enterprise Portal Add-on 16. Laserfiche forms Authenticated Participants (1-49 users) 17. Laserfiche Forms Authenticated Participants (50-199 users) 18. Laserfiche Forms Authenticated Participants (200-499 users) 19. Laserfiche Quick Fields 20. Laserfiche Quick Fields Basic 21. Laserfiche Quick Fields Core 22. Laserfiche Quick Fields Classify 23. Laserfiche Quick Fields Context 24. Laserfiche Quick Fields Complete 25. Laserfiche Quick Fields Agent 26. Laserfiche Quick Fields Auto Stamp/Redaction (Upgrade) 27. Laserfiche Quick Fields Document Classification (Upgrade) 28. Laserfiche Import Agent 29. Laserfiche ScanConnect 30. Laserfiche ScanConnect S-Pack 31. Laserfiche Plus for Digital Archiving 32. Laserfiche Plus for Publishing -18- $7,995.00 $24,000.00 $200.00 $140.00 $99.00 $595.00 $2,500.00 $5,000.00 $7,500.00 $10,000.00 $15,000.00 $10,000.00 $500.00 $5,000.00 $1,500.00 $165.00 $660.00 $10,000.00 $3,800.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 33. Laserfiche Enterprise Agenda manager (1 0 Meeting Types) $25,000.00 34. Laserfiche Enterprise Agenda Manager (50 Meeting Types) $35,000.00 35. Laserfiche SDK $2,500.00 36. LF Connector 37. LF Connector 5 Pack $1,495.00 $5,975.00 Additional Service fees shall only be paid to CONTRACTOR if any such services set forth hereinabove are performed by CONTRACTOR upon COUNTY's written request. In no event shall Additional Service Fees exceed $50,000 per year for each one year period of this Agreement. H) TOTAL CONTRACT AMOUNT In no event shall services performed under this Agreement be in excess of $975,000 during the entire possible five (5) year term of this Agreement. It is understood that all expenses incidental to CONTRACTOR'S performance of services under this Agreement shall be borne by CONTRACTOR. I) INVOICING CONTRACTOR shall submit invoices (which must reference the provided contract number), either electronically or via mail to the County of Fresno ITSD, Accounts Payable, 2048 N. Fine Avenue, Fresno, CA 93727 or Accounts Payable (ITSDBusinessOffice@Co.Fresno.Ca.US ). COUNTY will pay CONTRACTOR within forty-five (45) days of receipt of an approved invoice, by mail addressed to CONTRACTOR's remittance address at 410 S Melrose Drive, Suite 100, Vista, CA 92081. VIII. INDEPENDENT CONTRACTOR: 24 In performance of the work, duties and obligations assumed by CONTRACTOR under 25 this Agreement, it is mutually understood and agreed that CONTRACTOR, including any and 26 all of the CONTRACTOR'S officers, agents, and employees will at all times be acting and 27 performing as an independent contractor, and shall act in an independent capacity and not as 28 an officer, agent, servant, employee, joint venturer, partner, or associate of the COUNTY. -19- 1 Furthermore, COUNTY shall have no right to control or supervise or direct the manner or 2 method by which CONTRACTOR shall perform its work and function. However, COUNTY shall 3 retain the right to administer this Agreement so as to verify that CONTRACTOR is performing 4 its obligations in accordance with the terms and conditions thereof. 5 CONTRACTOR and COUNTY shall comply with all applicable provisions of law and the 6 rules and regulations, if any, of governmental authorities having jurisdiction over matters the 7 subject thereof. 8 Because of its status as an independent contractor, CONTRACTOR shall have absolutely 9 no right to employment rights and benefits available to COUNTY employees. CONTRACTOR 10 shall be solely liable and responsible for providing to, or on behalf of, its employees all 11 legally-required employee benefits. In addition, CONTRACTOR shall be solely responsible and 12 save COUNTY harmless from all matters relating to payment of CONTRACTOR'S employees, 13 including compliance with Social Security withholding and all other regulations governing such 14 matters. It is acknowledged that during the term of this Agreement, CONTRACTOR may be 15 providing services to others unrelated to the COUNTY or to this Agreement. 16 17 IX. MODIFICATION 18 Any matters of this Agreement may be modified from time to time by the written consent 19 of all the parties without, in any way, affecting the remainder. 20 21 X. NON-ASSIGNMENT 22 Neither party shall assign, transfer or sub-contract this Agreement nor their rights or 23 duties under this Agreement without the prior written consent of the other party. 24 25 XI. HOLD HARI\l!LESS 26 CONTRACTOR agrees to indemnify, save, hold harmless, and at COUNTY'S request, 27 defend the COUNTY, its officers, agents, and employees from any and all costs and expenses, 28 damages, liabilities, claims, and losses occurring or resulting to COUNTY in connection with the -20- 1 performance, or failure to perform, by CONTRACTOR, its officers, agents, or employees under 2 this Agreement, and from any and all costs and expenses including attorney's fees and court 3 costs, damages, liabilities, claims, and losses occurring or resulting to any person, firm, or 4 corporation who may be injured or damaged by the performance, or failure to perform, of 5 CONTRACTOR, its officers, agents, or employees under this Agreement. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 XII. INSURANCE Without limiting the COUNTY's right to obtain indemnification from CONTRACTOR or any third parties, CONTRACTOR, at its sole expense, shall maintain in full force and effect, the following insurance policies throughout the term of the Agreement: A) COMMERCIAL GENERAL LIABILITY Commercial General Liability Insurance with limits of not less than One Million Dollars ($1 ,000,000) per occurrence and an annual aggregate of Two Million Dollars ($2,000,000). This policy shall be issued on a per occurrence basis. COUNTY may require specific coverages including completed operations, products liability, contractual liability, Explosion-Collapse-Underground, fire legal liability or any other liability insurance deemed necessary because of the nature of this contract. B) AUTOMOBILE LIABILITY Comprehensive Automobile Liability Insurance with limits for bodily injury of not less than Two Hundred Fifty Thousand Dollars ($250,000.00) per person, Five Hundred Thousand Dollars ($500,000.00) per accident and for property damages of not less than Fifty Thousand Dollars ($50,000.00), or such coverage with a combined single limit of Five Hundred Thousand Dollars ($500,000.00). Coverage should include owned and non- owned vehicles used in connection with this Agreement. C) PROFESSIONAL LIABILITY If CONTRACTOR employs licensed professional staff, (e.g., Ph.D., R.N., L.C.S.W., M.F.C.C.) in providing services, Professional Liability Insurance with limits of not less than One Million Dollars ($1 ,000,000.00) per occurrence, Three Million Dollars ($3,000,000.00) -21 - 1 annual aggregate. 2 D) WORKER'S COMPENSATION 3 A policy of Worker's Compensation insurance as may be required by the California 4 Labor Code. 5 CONTRACTOR shall obtain endorsements to the Commercial General Liability 6 insurance naming the County of Fresno, its officers, agents, and employees, individually 7 and collectively, as additional insured, but only insofar as the operations under this 8 Agreement are concerned. Such coverage for additional insured shall apply as primary 9 insurance and any other insurance, or self-insurance, maintained by COUNTY, its officers, 10 agents and employees shall be excess only and not contributing with insurance provided 11 under CONTRACTOR's policies herein. This insurance shall not be cancelled or changed 12 without a minimum of thirty (30) days advance written notice given to COUNTY. 13 Within Thirty (30) days from the date CONTRACTOR executes this Agreement, 14 CONTRACTOR shall provide certificates of insurance and endorsement as stated above 15 for all of the foregoing policies, as required herein, to the County of Fresno, Robert Bash, 16 Chief Information Officer, 2048 N Fine Street, Fresno CA 93727, stating that such 17 insurance coverages have been obtained and are in full force; that the County of Fresno, 18 its officers, agents and employees will not be responsible for any premiums on the 19 policies; that such Commercial General Liability insurance names the County of Fresno, 20 its officers, agents and employees, individually and collectively, as additional insured, but 21 only insofar as the operations under this Agreement are concerned; that such coverage 22 for additional insured shall apply as primary insurance and any other insurance, or 23 self-insurance, maintained by COUNTY, its officers, agents and employees, shall be 24 excess only and not contributing with insurance provided under CONTRACTOR's policies 25 herein; and that this insurance shall not be cancelled or changed without a minimum of 26 thirty (30) days advance, written notice given to COUNTY. 27 In the event CONTRACTOR fails to keep in effect at all times insurance coverage as 28 herein provided, the COUNTY may, in addition to other remedies it may have, suspend or -22- 1 terminate this Agreement upon the occurrence of such event. 2 All policies shall be with admitted insurers licensed to do business in the State of 3 California. Insurance purchased shall be purchased from companies possessing a current 4 A.M. Best, Inc. rating of A FSC VII or better. 5 6 7 8 XIII. AUDITS AND INSPECTIONS CONTRACTOR shall at any time during CONTRACTOR'S normal business hours, and 9 upon prior written notice, as often as the COUNTY may deem necessary, make available to the 10 COUNTY for examination all of its records and data with respect to the matters covered by this 11 Agreement. CONTRACTOR shall, upon request by the COUNTY, permit the COUNTY to audit 12 and inspect all of such records and data necessary to ensure CONTRACTOR'S compliance 13 with the terms of this Agreement. Any such examinations or audits shall be at the COUNTY'S 14 expense. 15 If this Agreement exceeds ten thousand dollars ($1 0,000.00}, CONTRACTOR shall be 16 subject to the examination and audit of the Auditor General for a period of three (3) years after 17 final payment under contract (Government Code Section 8546.7). 18 19 XIV. NOTICES 20 A) AUTHORITY TO GIVE AND RECEIVE NOTICES 21 The persons and their addresses having authority to give and receive notices under this 22 Agreement include the following: 23 24 25 26 27 28 COUNTY OF FRESNO Robert Bash Chief Information Officer 2048 N Fine Fresno, CA 93727 CONTRACTOR Debbi Bodewin Executive Vice President 5905 Brockton Ave, Suite C Riverside, CA 92506 Any and all notices between the COUNTY and the CONTRACTOR provided -23- 1 for or permitted under this Agreement or by law shall be in writing and shall be deemed duly 2 served when personally delivered to one of the parties, or in lieu of such personal services, when 3 deposited in the United States Mail, postage prepaid, addressed to such party or by electronic 4 mail sent to and confirmed by CONTRACTOR at CONTRACTOR's email address. 5 B) PRIMARY ESCALATION CONTACT INFORMATION 6 The persons and their contact information that the COUNTY or CONTRACTOR can use to 7 escalate problems or situations: 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 XV. (1) COUNTY Contact# 1: Daniel Moore Information Technology Manager Office Phone: (559) 600-5800 Email: dmoore@co.fresno.ca.us (2) COUNTY Contact# 2: Mark Zack Information Technology Division Manager Office Phone: (559) 600-5800 Cell Phone: (559) 349-0210 Email: mzack@co.fresno.ca.us GOVERNING LAW CONTRACTOR Contact# 1: Debbi Bodewin Executive Vice President Office Phone: (951) 787-8768 Cell Phone: (949) 355-1148 Email debbi@ecsimaging.com CONTRACTOR Contact# 2: James Green Chief Operatinq Officer Office Phone: (951) 787-8768 Cell Phone: (714) 906-1009 Email iames@ecsimaaina .com Venue for any action arising out of or related to this Agreement shall only be in Fresno County, California. 27 The rights and obligations of the parties and all interpretation and performance of this 28 Agreement shall be governed in all respects by the laws of the State of California. -24- 1 XVI. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT 2 A. The parties to this Agreement shall be in strict conformance with all applicable 3 Federal and State of California laws and regulations, including but not limited to Sections 4 5328, 10850, and 14100.2 et seq. of the Welfare and Institutions Code, Sections 2.1 and 5 431.300 et seq. of Title 42, Code of Federal Regulations (CFR), Section 56 et seq. of the 6 California Civil Code, Sections 11977 and 11812 of Title 22 of the California Code of 7 Regulations, and the Health Insurance Portability and Accountability Act (HIPAA), including 8 but not limited to Section 1320 D et seq. of Title 42, United States Code (USC) and its 9 implementing regulations, including, but not limited to Title 45, CFR, Sections 142, 160, 162, 10 and 164, The Health Information Technology for Economic and Clinical Health Act 11 (HITECH) regarding the confidentiality and security of patient information, and the Genetic 12 Information Nondiscrimination Act (GINA) of 2008 regarding the confidentiality of genetic 13 information. 14 Except as otherwise provided in this Agreement, CONTRACTOR, as a Business 15 Associate of COUNTY, may use or disclose Protected Health Information (PHI) to perform 16 functions, activities or services for or on behalf of COUNTY, as specified in this Agreement, 17 provided that such use or disclosure shall not violate the Health Insurance Portability and 18 Accountability Act (HIPAA), USC 1320d et seq. The uses and disclosures of PHI may not 19 be more expansive than those applicable to COUNTY, as the "Covered Entity" under the 20 HIPAA Privacy Rule (45 CFR 164.500 et seq.), except as authorized for management, 21 administrative or legal responsibilities of the Business Associate. 22 B. CONTRACTOR, including its subcontractors and employees, shall protect, from 23 unauthorized access, use, or disclosure of names and other identifying information, including 24 genetic information, concerning persons receiving services pursuant to this Agreement, 25 except where permitted in order to carry out data aggregation purposes for health care 26 operations [45 CFR Sections 164.504 (e)(2)(i), 164.504 (3)(2)(ii)(A), and 164.504 (e)(4)(i)] 27 This pertains to any and all persons receiving services pursuant to a COUNTY funded 28 program. This requirement applies to electronic PHI. CONTRACTOR shall not use such -25- 1 identifying information or genetic information for any purpose other than carrying out 2 CONTRACTOR's obligations under this Agreement. 3 C. CONTRACTOR, including its subcontractors and employees, shall not disclose 4 any such identifying information or genetic information to any person or entity, except as 5 otherwise specifically permitted by this Agreement, authorized by Subpart E of 45 CFR Part 6 164 or other law, required by the Secretary, or authorized by the client/patient in writing. In 7 using or disclosing PHI that is permitted by this Agreement or authorized by law, 8 CONTRACTOR shall make reasonable efforts to limit PHI to the minimum necessary to 9 accomplish intended purpose of use, disclosure or request. 10 D. For purposes of the above sections, identifying information shall include, but not 11 be limited to name, identifying number, symbol, or other identifying particular assigned to the 12 individual, such as finger or voice print, or photograph. 13 E. For purposes of the above sections, genetic information shall include genetic 14 tests of family members of an individual or individual, manifestation of disease or disorder of 15 family members of an individual, or any request for or receipt of, genetic services by 16 individual or family members. Family member means a dependent or any person who is 17 first, second, third, or fourth degree relative. 18 F. CONTRACTOR shall provide access, at the request of COUNTY, and in the 19 time and manner designated by COUNTY, to PHI in a designated record set (as defined 20 in 45 CFR Section 164.501), to an individual or to COUNTY in order to meet the 21 requirements of 45 CFR Section 164.524 regarding access by individuals to their PHI. 22 With respect to individual requests, access shall be provided within thirty (30) days from 23 request. Access may be extended if CONTRACTOR cannot provide access and provides 24 individual with the reasons for the delay and the date when access may be granted. PHI 25 shall be provided in the form and format requested by the individual or COUNTY. 26 CONTRACTOR shall make any amendment(s) to PHI in a designated record set at 27 the request of COUNTY or individual, and in the time and manner designated by 28 COUNTY in accordance with 45 CFR Section 164.526. -26- 1 CONTRACTOR shall provide to COUNTY or to an individual, in a time and manner 2 designated by COUNTY, information collected in accordance with 45 CFR Section 3 164.528, to permit COUNTY to respond to a request by the individual for an accounting of 4 disclosures of PHI in accordance with 45 CFR Section 164.528. 5 G. CONTRACTOR shall report to COUNTY, in writing, any knowledge or reasonable 6 belief that there has been unauthorized access, viewing, use, disclosure, security incident, or 7 breach of unsecured PHI not permitted by this Agreement of which it becomes aware, 8 immediately and without reasonable delay and in no case later than two (2) business days of 9 discovery. Immediate notification shall be made to COUNTY's Information Security Officer 10 and Privacy Officer and COUNTY's DPH HIPAA Representative, within two (2) business 11 days of discovery. The notification shall include, to the extent possible, the identification of 12 each individual whose unsecured PHI has been, or is reasonably believed to have been, 13 accessed, acquired, used, disclosed, or breached. CONTRACTOR shall take prompt 14 corrective action to cure any deficiencies and any action pertaining to such unauthorized 15 disclosure required by applicable Federal and State Laws and regulations. CONTRACTOR 16 shall investigate such breach and is responsible for all notifications required by law and 17 regulation or deemed necessary by COUNTY and shall provide a written report of the 18 investigation and reporting required to COUNTY's Information Security Officer and Privacy 19 Officer and COUNTY's DPH HIPAA Representative. This written investigation and 20 description of any reporting necessary shall be postmarked within the thirty (30) working 21 days of the discovery of the breach to the addresses below: 22 23 24 25 26 27 28 County of Fresno Dept. of Public Health HIPAA Representative Privacy Officer (559) 600-6439 P.O. Box 11867 Fresno, CA 93775 County of Fresno Dept. of Public Health Information Security Officer (559) 600-6405 P.O. Box 11867 Fresno, CA 93775 -27- County of Fresno Information Technology Services (559) 600-5800 2048 N. Fine Street Fresno, CA 93727 1 H. CONTRACTOR shall make its internal practices, books, and records relating to 2 the use and disclosure of PHI received from COUNTY, or created or received by the 3 CONTRACTOR on behalf of COUNTY, in compliance with HIPAA's Privacy Rule, including, 4 but not limited to the requirements set forth in Title 45, CFR, Sections 160 and 164. 5 CONTRACTOR shall make its internal practices, books, and records relating to the use and 6 disclosure of PHI received from COUNTY, or created or received by the CONTRACTOR on 7 behalf of COUNTY, available to the United States Department of Health and Human 8 Services (Secretary) upon demand. 9 CONTRACTOR shall cooperate with the compliance and investigation reviews 1 0 conducted by the Secretary. PHI access to the Secretary must be provided during the 11 CONTRACTOR's normal business hours, however, upon exigent circumstances access at 12 any time must be granted. Upon the Secretary's compliance or investigation review, if PHI is 13 unavailable to CONTRACTOR and in possession of a Subcontractor, it must certify efforts to 14 obtain the information to the Secretary. 15 I. Safeguards 16 CONTRACTOR shall implement administrative, physical, and technical safeguards as 17 required by the HIPAA Security Rule, Subpart C of 45 CFR 164, that reasonably and 18 appropriately protect the confidentiality, integrity, and availability of PHI, including electronic 19 PHI, that it creates, receives, maintains or transmits on behalf of COUNTY and to prevent 20 unauthorized access, viewing, use, disclosure, or breach of PHI other than as provided for 21 by this Agreement. CONTRACTOR shall conduct an accurate and thorough assessment of 22 the potential risks and vulnerabilities to the confidential, integrity and availability of electronic 23 PHI. CONTRACTOR shall develop and maintain a written information privacy and security 24 program that includes administrative, technical and physical safeguards appropriate to the 25 size and complexity of CONTRACTOR's operations and the nature and scope of its 26 activities. Upon COUNTY's request, CONTRACTOR shall provide COUNTY with 27 information concerning such safeguards. 28 -28- 1 CONTRACTOR shall implement strong access controls and other security safeguards 2 and precautions in order to restrict logical and physical access to confidential, personal (e.g., 3 PHI) or sensitive data to authorized users only. Said safeguards and precautions shall 4 include the following administrative and technical password controls for all systems used to 5 process or store confidential, personal, or sensitive data: 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1. Passwords must not be: a. Shared or written down where they are accessible or recognizable by anyone else; such as taped to computer screens, stored under keyboards, or visible in a work area; b. A dictionary word; or c. Stored in clear text. 2. Passwords must be: a. Eight (8) characters or more in length; b. Changed every ninety (90) days; c. Changed immediately if revealed or compromised; and d. Composed of characters from at least three (3) of the following four (4) groups from the standard keyboard: 1) Upper case letters (A-Z); 2) Lowercase letters (a-z); 3) Arabic numerals (0 through 9); and 21 4) Non-alphanumeric characters (punctuation symbols). 22 CONTRACTOR shall implement the following security controls on each workstation 23 or portable computing device (e.g., laptop computer) containing confidential, 24 personal, or sensitive data: 25 1. Network-based firewall and/or personal firewall; 26 2. Continuously updated anti-virus software; and 27 3. Patch management process including installation of all operating 28 system/software vendor security patches. -29- 1 CONTRACTOR shall utilize a commercial encryption solution that has received FIPS 2 140-2 validation to encrypt all confidential, personal, or sensitive data stored on portable 3 electronic media (including, but not limited to, compact disks and thumb drives) and on 4 portable computing devices (including, but not limited to, laptop and notebook computers). 5 CONTRACTOR shall not transmit confidential, personal, or sensitive data via e-mail 6 or other internet transport protocol unless the data is encrypted by a solution that has 7 been validated by the National Institute of Standards and Technology (NIST) as 8 conforming to the Advanced Encryption Standard (AES) Algorithm. CONTRACTOR must 9 apply appropriate sanctions against its employees who fail to comply with these 10 safeguards. CONTRACTOR must adopt procedures for terminating access to PHI when 11 employment of employee ends. 12 J. Mitigation of Harmful Effects 13 CONTRACTOR shall mitigate, to the extent practicable, any harmful effect that is 14 suspected or known to CONTRACTOR of an unauthorized access, viewing, use, 15 disclosure, or breach of PHI by CONTRACTOR or its subcontractors in violation of the 16 requirements of these provisions. CONTRACTOR must document suspected or known 17 harmful effects and the outcome. 18 K. CONTRACTOR's Subcontractors 19 CONTRACTOR shall ensure that any of its contractors, including subcontractors, if 20 applicable, to whom CONTRACTOR provides PHI received from or created or received by 21 CONTRACTOR on behalf of COUNTY, agree to the same restrictions, safeguards, and 22 conditions that apply to CONTRACTOR with respect to such PHI and to incorporate, 23 when applicable, the relevant provisions of these provisions into each subcontract or sub- 24 award to such agents or subcontractors .. 25 L. Employee Training and Discipline 26 CONTRACTOR shall train and use reasonable measures to ensure compliance with 27 the requirements of these provisions by employees who assist in the performance of 28 functions or activities on behalf of COUNTY under this Agreement and use or disclose -30- 1 PHI and discipline such employees who intentionally violate any provisions of these 2 provisions, including termination of employment. 3 M. Termination for Cause 4 Upon COUNTY's knowledge of a material breach of these provisions by 5 CONTRACTOR, COUNTY shall either: 6 1. Provide an opportunity for CONTRACTOR to cure the breach or end the violation 7 and terminate this Agreement if CONTRACTOR does not cure the breach or end the 8 violation within the time specified by COUNTY; or 9 2. Immediately terminate this Agreement if CONTRACTOR has breached a material 10 term of these provisions and cure is not possible. 11 3. If neither cure nor termination is feasible, the COUNTY's Privacy Officer shall report 12 the violation to the Secretary of the U.S. Department of Health and Human Services. 13 N. Judicial or Administrative Proceedings 14 COUNTY may terminate this Agreement in accordance with the terms and conditions 15 of this Agreement as written hereinabove, if: (1) CONTRACTOR is found guilty in a 16 criminal proceeding for a violation of the HIPAA Privacy or Security Laws or the HITECH 17 Act; or (2) there is a finding or stipulation that the CONTRACTOR has violated a privacy 18 or security standard or requirement of the HITECH Act, HIPAA or other security or privacy 19 laws in an administrative or civil proceeding in which the CONTRACTOR is a party. 20 0. Effect of Termination 21 Upon termination or expiration of this Agreement for any reason, CONTRACTOR 22 shall return or destroy all PHI received from COUNTY (or created or received by 23 CONTRACTOR on behalf of COUNTY) that CONTRACTOR still maintains in any form, 24 and shall retain no copies of such PHI. If return or destruction of PHI is not feasible, it 25 shall continue to extend the protections of these provisions to such information, and limit 26 further use of such PHI to those purposes that make the return or destruction of such PHI 27 infeasible. This provision shall apply to PHI that is in the possession of subcontractors or 28 agents, if applicable, of CONTRACTOR. If CONTRACTOR destroys the PHI data, a -31 - 1 certification of date and time of destruction shall be provided to the COUNTY by 2 CONTRACTOR. 3 P. Disclaimer 4 COUNTY makes no warranty or representation that compliance by CONTRACTOR 5 with these provisions, the HITECH Act, HIPAA or the HIPAA regulations will be adequate 6 or satisfactory for CONTRACTOR's own purposes or that any information in 7 CONTRACTOR's possession or control, or transmitted or received by CONTRACTOR, is 8 or will be secure from unauthorized access, viewing, use, disclosure, or breach. 9 CONTRACTOR is solely responsible for all decisions made by CONTRACTOR regarding 10 the safeguarding of PHI. 11 Q. Amendment 12 The parties acknowledge that Federal and State laws relating to electronic data 13 security and privacy are rapidly evolving and that amendment of these provisions may be 14 required to provide for procedures to ensure compliance with such developments. The 15 parties specifically agree to take such action as is necessary to amend this agreement in 16 order to implement the standards and requirements of HIPAA, the HIPAA regulations, the 17 HITECH Act and other applicable laws relating to the security or privacy of PHI. COUNTY 18 may terminate this Agreement upon thirty (30) days written notice in the event that 19 CONTRACTOR does not enter into an amendment providing assurances regarding the 20 safeguarding of PHI that COUNTY in its sole discretion, deems sufficient to satisfy the 21 standards and requirements of HIPAA, the HIPAA regulations and the HITECH Act. 22 R. No Third-Party Beneficiaries 23 Nothing express or implied in the terms and conditions of these provisions is 24 intended to confer, nor shall anything herein confer, upon any person other than COUNTY 25 or CONTRACTOR and their respective successors or assignees, any rights, remedies, 26 obligations or liabilities whatsoever. 27 S. Interpretation 28 The terms and conditions in these provisions shall be interpreted as broadly as -32- 1 necessary to implement and comply with HIPAA, the HIPAA regulations and applicable 2 State laws. The parties agree that any ambiguity in the terms and conditions of these 3 provisions shall be resolved in favor of a meaning that complies and is consistent with 4 HIPAA and the HIPAA regulations. 5 T. Regulatory References 6 A reference in the terms and conditions of these provisions to a section in the HIPAA 7 regulations means the section as in effect or as amended. 8 U. Survival 9 The respective rights and obligations of CONTRACTOR as stated in this Section shall 10 survive the termination or expiration of this Agreement. 11 V. No Waiver of Obligations 12 No change, waiver or discharge of any liability or obligation hereunder on any one or 13 more occasions shall be deemed a waiver of performance of any continuing or other 14 obligation, or shall prohibit enforcement of any obligation on any other occasion. 15 16 XVII. DISCLOSURE OF SELF-DEALING TRANSACTIONS 17 This provision is only applicable if the CONTRACTOR is operating as a corporation (a for- 18 profit or non-profit corporation) or if during the term of this agreement, the CONTRACTOR 19 changes its status to operate as a corporation. 20 Members of the CONTRACTOR's Board of Directors shall disclose any self-dealing 21 transactions that they are a party to while CONTRACTOR is providing goods or performing 22 services under this agreement. A self-dealing transaction shall mean a transaction to which the 23 CONTRACTOR is a party and in which one or more of its directors has a material financial 24 interest. Members of the Board of Directors shall disclose any self-dealing transactions that 25 they are a party to by completing and signing a Self-Dealing Transaction Disclosure Form 26 (Exhibit 1) and submitting it to the COUNTY prior to commencing with the self-dealing 27 transaction or immediately thereafter. 28 -33- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 XVIII. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the CONTRACTOR and COUNTY with respect to the subject matter hereof and supersedes all previous Agreement negotiations, proposals, commitments, writings, advertisements, publications, and understandings of any nature whatsoever unless expressly included in this Agreement. In the event of any inconsistency in interpreting the documents comprising this Agreement, the inconsistency shall be resolved by giving precedence in the following order of priority: (1) the text of this Agreement (excluding COUNTY's RFP No. 962-5267 and CONTRACTOR's Response thereto); (2) COUNTY's RFP No. 962-5267; and (3) CONTRACTOR's Response to RFP No. 962-5267. -34- 1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and 2 year first hereinabove written. 3 CONTRACTOR 4 / VJbba 5 Debbie Bodewin, Executive Vice President : ~~-----<--{t--+JlZ'I---o~D_ 9 10 DATE: 11 12 13 REVIEWED & RECOM 16 17 18 19 ~~~v L 20 APPROVED AS TO LEGAL FORM 21 22 23 24 FOR ACCOUNTING USE ONLY: 25 26 ORG No.: 27 Account No./Fund: 28 COUNTY OF FRE~· ~a. . Deborah A. Poochigian 0 Chairman, Board of Supervisors DATE: ATTEST: BERNICE E. SEIDEL, Clerk Board of Supervisors By Su.~..cN ~s.he>.f2 Deputy Date: :Tc""""'~ ~, d.O lS REVIEWED & REeOMMENDED FOR APPROVAL 1d Porn Director o Health ~k Chief Probation Officer APPROVED AS TO ACCOUNTING FORM 0£t. 'iC.~ J. -35- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 -Self-Dealing Transaction Disclosure Form SELF-DEAUNG TRANSAcnON DISCLOSURE FORM In order to conduct business with the County of Fresno (hereinafter referred to as "County"), members of a contractor's board of directors must disclose any self-dealing transactions that they are a party to while providing goods, performing services, or both for the County. A self-dealing transaction is defined below: "A self-dealing transaction means a transaction to which the corporation is a party and in which one or more of its board members has a material financial interest" The definition above will be utilized for purposes of completing this disclosure form. INSTRUCTIONS (1) Enter board member's name, job title (if applicable), and date this disclosure is being made. (2) Enter the board member's company/agency name and address. (3) Describe in detail the nature of the self-dealing transaction that is being disclosed to the County. At a minimum, include a description of the following: a. The name of the agency/company with which the corporation has the transaction; and b. The nature of the material financial interest in the Corporation's transaction that the board member has. (4) Describe in detail why the self-dealing transaction is appropriate based on applicable provisions of the Corporations Code. (5) Form must be signed by the board member that is involved in the self-dealing transaction described in Sections (3) and (4). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) Company Board Member Information: Name: Date: Job Title: (2) Company/Agency Name and Address: (3) Disclosure (Please describe the nature of the self-dealing transaction you are a party to): (4) Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233 (a): (5) Authorized Signature Signature: I Date: I II