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RPVCCA_SR_2010_07_06_07_Upgrade_of_Network_Phone_SystemCITY OF MEMORANDUM ~ RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR &CITY COUNCIL MEMBERS ~ DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATION TECHNOLOGY JULY 6,2010 UPGRADE OF NETWORK PHONE SYSTEM CAROLYN LEHR,CITY MANAGER 09-- RECOMMENDATION Approve and authorize the City Manager to execute the attached Professional Services Agreement with NexuslS regarding the upgrade of the City's Cisco VOIP network phone system. BACKGROUND AND DISCUSSION: Current Cisco Phone System The City implemented its current Cisco voice over Internet protocol ("VOIP")phone system in 2002,after completing a competitive bid process that led to the approval of agreements by the City Council on August 6,2002.During the installation in 2002,the core network voice gateway switch and the call manager and voice messaging servers ("voice server equipment")were installed in the Information Technology ("IT")server room at City Hall. Both internal and external phone calls are routed between user's phone handsets and the voice server equipment over the City IT network. The Cisco VOIP phone system was acquired at a cost of about $80,000 with an expected annual maintenance and support cost of about $17,000.The actual annual average support cost has been about 50%less than expected.The 2002 implementation included one (1)console used in the Reception area for call management during business hours, eighty (80)desktop handsets,two (2)conference phones,as well as the voice server equipment.The Cisco phone system is fully depreciated;therefore,the proposed upgrade, as well as any future replacement,is fully funded in the City's Equipment Replacement fund. In 2006,the Point Vicente Interpretive Center ("PVIC")was connected to the Cisco VOIP phone system using fiber optic cabling strung between City Hall and the Center.The 7-1 UPGRADE OF NETWORK PHONE SYSTEM July 6,2010 Page 2 of 3 connection of the Cisco VOIP phone system at PVIC has replaced the use ofVerizon land lines,saving at least $6,000 annually,while providing connection to the City Hall network as well.Staff and its IT advisor,Palos Verdes on the Net ("PVNET"),have recently facilitated the installation of 1.5 MB T1 data line at Hesse Park that is expected to enable connection of the Cisco VOIP phone system and the City Hall network to Hesse Park soon. NexuslS -City's VOIP Phone System Provider The Cisco VOIP phone system was acquired from and installed by NexuslS (formerly known as Expanets),a Cisco "gold certified"reseller based in Valencia,California. NexuslS has provided on-going maintenance,support and equipment warranty services since implementation.With its eight year history working with City Staff and PVNET, NexuslS has gained a valuable working knowledge of the City's IT network and the Cisco VOIP phone system,including the network design and configuration,security and connection configuration with service providers.More important to this upgrade,Nexus IS participated in the implementation and subsequent support of the user call routing configuration (Le.use ofthe Reception console for transferring calls received,and direct-in- dial call routing,after-hour call routing for voice messaging,emergency analog line configuration).Staff is satisfied with the services delivered by NexuslS. Proposed Upgrade The proposed upgrade focuses on the replacement of all of the voice server equipment and the operating software,but not handsets.The Cisco voice server equipment has reached end-of-Iife and will not be supported by Cisco in the future.Desktop handsets continue to operate satisfactorily and are expected to be supported by Cisco for years to come.If approved by the Council,NexuslS'implementation services will include software installation onto all of the new Cisco voice server equipment prior to installation, transferring all of the City's current Cisco VOIP phone system configurations,testing by NexuslS engineers,as well as "go-live"support. The proposed upgrade includes one significant design and operation improvement:a redundant call manager server.In the event the primary call manager server becomes disabled,the redundant (second)server would automatically assume call management without interruption of calls.Although the current call manager has operated with little down-time,the installation of a redundant server is consistent with "best practices"in the IT field and has been recommended by Cisco and NexuslS engineers. Staff's Informal Process Staff and PVNET have made several inquiries and conducted meetings directly with Cisco (the manufacturer)customer support and engineers professionals and several other local Cisco resellers and have ascertained that service rates,the cost of the proposed upgrade equipment and annual equipment warranties charges (described below)are the lowest available from any Cisco reseller in southern California.Staff has been advised by Cisco representatives that the product and warranty discounts provided by NexuslS are similarto discounts provided for larger purchases.Staff and PVNET have been provided evidence that the cost of the proposed upgrade equipment is less than the best available 7-2 UPGRADE OF NETWORK PHONE SYSTEM July 6,2010 Page 3 of 3 government contract pricing. Request for City Council to Waive Bid Process·Section 2.44.030 of the Municipal Code The Proposed Upgrade (previously described above)is the first time that any upgrade and/or modifications of Cisco VOIP phone system will reach the $25,000 cost threshold that requires consideration of the use of a bid process in accordance with 2.44.030 of the Municipal Code.However,Staff believes that the selection of NexuslS to perform the Proposed Upgrade is in the City's best interest to ensure a seamless upgrade ofthe Cisco VOIP phone system.Again,NexuslS was the IT contractor that implemented the VOIP phone system,currently supports it and knows the technical configurations intimately. Therefore,Staff requests that the City Council waive the requirements of 2.44.030 of the Municipal Code. Alternative·Bid Process If the Council wishes,Staff could conduct a bid process of certified Cisco resellers in southern California to perform the upgrade.Staff believes that no cost savings would be derived.Staff also believes the City would incur additional time and cost to conduct a bid process,as well as possibly educate a different Cisco reseller during the planning process and monitor the upgrade through completion. FISCAL IMPACT Staff established a provision for about $60,000 in the FY09-10 budget in the Equipment Replacement fund -Computers to pay for the proposed upgrade.Staff will request that the Council carry over the appropriation to FY10-11 to pay for the upgrade.The IT program within the FY10-11 General Fund operating budget can absorb the additional incremental on-going cost of approximately $2,100 for the annual support and equipment warranty cost for the new voice server equipment.A summary of the initial and annual cost of the proposed upgrade follows: Summary of Initial and Annual Cost of Proposed Upgrade: Initial cost -equipment -NexuslS $45,400 Initial cost -PVNET professional sennces during implementation $2,350 TOTAL Initial cost $47,750 Annual additional incremental cost -support and equipment warranty $2,100 Attachments: Professional Services Agreement 7-3 PROFESSIONAL SERVICES AGREEMENT This PROFESSIONAL SERVICES AGREEMENT ("Agreement")is made and entered into this 6th day of July,2010,by and between the CITY OF RANCHO PALOS VERDES hereinafter referred to as "CITY",and NexislS,Inc.hereafter referred to as "CONSULTANT". IN CONSIDERATION of the covenants hereinafter set forth,the parties hereto mutually agree as follows: ARTICLE 1 SCOPE OF SERVICES 1.1 Project Description The Project is described as follows: The upgrade of hardware and software as described in Quote 40134, attached hereto as Attachment A and incorporated herein by this reference,onto the CITY's Cisco voice over internet protocol phone system (the "Cisco VOIP phone system"). The new upgrade hardware and related software shall include,but not be limited to, redundant Cisco Call Manager server equipment,Cisco Unity Voicemail server equipment and Cisco voice gateway equipment.The services shall be performed in accordance with Section 1.2 of this Agreement,as well as with the Implementation Plan as described in Section 1.2(a)of this Agreement. 1.2 Description of Services (a)Priorto delivery and installation of equipment and software,CITY and CONSULTANT shall develop and agree to a written implementation plan that shall hereafter be attached to and incorporated into this Agreement (the "Implementation Plan"). (b)CONSULTANT will install Cisco hardware and software described in Attachment A onto the City's VOIP phone system in accordance with the Scope of Professional Services,attached hereto as Attachment B and incorporated herein by this reference,as well as the Implementation Plan.The installation will include,but not be limited to,the following services: (1)Software installation onto the Cisco hardware,testing,and if requested,customer inspection at CONSULTANT'S installation lab; (2)Installation of the Cisco hardware and software onto the CITY's Cisco VOIP phone system; (3)Upon completion of the installation,testing to assure satisfactory operation,including,but not limited to,communication with all voice server Page 1 of 12 R6876.0001\1240449.2 7-4 equipment and handsets,call flow,multiple call handling,message waiting indicators, greetings,call routing,messaging,call database,accounting,and features including,but not limited to,"meet me,""park,""hold,""transfer"and "after-hours"; (4)Connection,testing and validation of internal and external voice circuits and voice operations with all voice service providers; (5)Conducting appropriate testing described in subsection (b)(4)of this Section with CITY and mutually validating completion of installation and satisfactory performance;and (6)Conducting "go-live"cutover,testing after such cutover, resolution of any outstanding issues with CITY,and validation of performance of the system to CITY's reasonable satisfaction. 1.3 Schedule of Work Upon execution of this Agreement,CONSULTANT shall perform services as described in Section 1.2.CONSULTANT shall perform all services under this Agreement in a timely manner consistent with industry standards for professional skill and care.Time is of the essence in this agreement. CONSULTANT shall not be responsible for delay,nor shall CONSULTANT be responsible for damages or be in default or deemed to be in default by reason of strikes,lockouts,accidents,or acts of God,or the failure of CITY to furnish timely information orto approve or disapprove CONSULTANT'S work promptly,or delay or faulty performance by CITY,other consultants/contractors,or governmental agencies,or any other delays beyond CONSULTANT'S control or without CONSULTANT'S fault. ARTICLE 2 COMPENSATION 2.1 Fee (a)CITY agrees to compensate CONSULTANT in accordance with the terms and conditions pursuant to Section 2.3 of this Agreement,but in any case,the total compensation to be paid by CITY to CONSULTANT under this Agreement shall not exceed $45,434.27.Any amount beyond the maximum total amount of $45,434.27 must be approved by the City Council. (b)CITY may request additional specified work under this Agreement.All such work must be authorized in writing by the Director of Finance and Information Technology prior to commencement.CITY shall pay for additional services in accordance with Section 2.3 of this Agreement. (c)CONSULTANTS invoices must be submitted within thirty (30)days of Page 2 of 12 R6876.0001\1240449.2 7-5 completion of seNices. 2.2 Payment Address All payments due CONSULTANT shall be paid to: NexuslS 27202 West Turnberry Lane Suite 100 Valencia,CA 91355 2.3 Terms of Compensation (a)CITY shall advance fifty percent (50%)of the total cost detailed in Attachment A upon execution of this Agreement. (b)CITY shall advance an additional forty percent (40%)of the total cost detailed in Attachment A upon delivery of Cisco equipment and software to the CITY's premises in conjunction with its installation. (c)CITY shall pay the balance of the total cost detailed in Attachment A upon completion of the installation in accordance with the terms of this Agreement. (d)Notwithstanding the provisions of Section 2.1 (a),CITY agrees to authorize payment for all undisputed invoice amounts within thirty (30)days of receipt of the invoice.CITY agrees to use its best efforts to notify CONSULTANT of any disputed invoice amounts or claimed completion percentages within ten (10)days of the receipt of each invoice.However,CITY's failure to timely notify CONSULTANT of a disputed amount of claimed completion percentage shall not be deemed a waiver of CITY's right to challenge such amount or percentage. (e)Additionally,in the event CITY fails to pay any undisputed amounts due CONSULTANT within thirty (30)days after invoices are received by CITY then CITY agrees that CONSULTANT shall have the right to consider said default a total breach of this Agreement and be terminated by CONSULTANT without liability to CONSULTANT upon ten (10)working days advance written notice to CITY. 2.4 Additional SeNices CITY may request in writing that CONSULTANT perform additional seNices regarding this upgrade not covered by Attachment B,and CONSULTANT shall perform such seNices and will be paid for such additional seNices in accordance with hourly rates and time agreed to by CITY and CONSULTANT in writing and made a part of this Agreement. Page 3 of 12 R6876.0001\1240449.2 7-6 2.5 Term of Agreement This Agreement shall commence on the day it is executed and shall terminate in accordance with the provisions of Article 4. ARTICLE 3 INDEMNIFICATION AND INSURANCE 3.1 Indemnification With respect to non-professional acts,CONSUL TANTwill defend,indemnify and hold harmless CITY and its officials,officers,employees,agents and volunteers free and harmless from all tort liability,including liability for claims,suits,actions,expenses or costs of any kind,whether actual,alleged or threatened,actual attorneys'fees,experts' fees,or court costs incurred by the CITY,to the extent arising out of or in any way connected with,in whole or in part,the negligent or other wrongful acts,omissions or willful misconduct of CONSULTANT or any of CONSULTANT's officers,agents,employees or contractors in the performance of this Agreement.This includes but is not limited to claims, suits and liabilities for bodily injury,death or property damage to any individual or entity, including officers,agents,employees or contractors ofthe CONSULTANT.The provisions of this paragraph shall not apply to claims to the extent arising out of the active negligence or willful misconduct of the CITY and its officials,officers,employees,agents and volunteers. In addition to the foregoing,CONSULTANT shall indemnify,defend and hold free and harmless the CITY and the CITY's officials,officers,employees,agents and volunteers from and against any and all losses,liabilities,damages,costs and expenses, including reasonable attorneys'fees,experts'fees,and costs to the extent the same are caused by negligence or willful misconduct of th_e CONSULTANT,or any of the CONSULTANT's officials,officers,agents,employees or volunteers,in the performance of professional services pursuant to this Agreement. 3.2 General Liability CONSULTANT shall at all times during the term of the Agreement carry, maintain,and keep in full force and effect,a policy or policies of Commercial General Liability Insurance,with minimum limits of One Million ($1,000,000)Dollars for each occurrence and in the aggregate,combined single limit,against any personal injury,death, loss or damage resulting from the wrongful or negligent acts by CONSULTANT.Said policy or policies shall be issued by an insurer admitted to do business in the State of California and rated in Best's Insurance Guide with a rating of A-VII or better. 3.3 Professional Liability CONSULTANT shall at all times during the term of this Agreement,carry, maintain,and keep in full force and effect a policy or policies of professional liability Page 4 of 12 R6876 .000 1\1240449.2 7-7 insurance with a minimum limit of one million ($1,000,000)dollars.Said policy or policies shall be issued by an insurer admitted to do business in the State of California or appearing on the California List of Eligible Surplus Line Insurers (LESLI),and rated in Best's Insurance Guide with a rating of A-VII or better. 3.4 Automobile Liability CONSULTANT shall at all times during the term of this Agreement obtain, maintain,and keep in full force and effect,a policy or policies of Automobile Liability Insurance,with minimum of one million dollars ($1 ,000,000)for each occurrence and in the aggregate,combined single limit for bodily injuries or death of one person and $500,000 for property damage arising from one incident. 3.5 Worker's Compensation CONSULTANT agrees to maintain in force at all times during the performance of work under this Agreement worker's compensation insurance as required by the law.CONSULTANT shall require any subcontractor similarly to provide such compensation insurance for their respective employees. 3.6 Notice of Cancellation (a)All insurance policies shall provide that the insurance coverage shall not be canceled by the insurance carrier without thirty (30)days prior written notice to CITY or ten (10)days if cancellation is due to nonpayment of premium.CONSULTANT agrees that it will not cancel or reduce said insurance coverage. (b )CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect,CITY may either immediately terminate this Agreement or,if insurance is available at a reasonable cost,CITY may take out the necessary insurance and pay,at CONSULTANT'S expense,the premium thereon. 3.7 Certificates of Insurance At all times during the term of this Agreement,CONSULTANT shall maintain on file with the CITY Clerk certificates of insurance showing that the aforesaid policies are in effect in the required amounts.The commercial general liability shall contain endorsements naming the CITY,its officers,agents and employees as additional insured. 3.8 Primary Coverage The commercial general liability insurance provided by CONSULTANT shall be primary to any coverage available to city.The insurance policies (other than workers' compensation and professional liability)shall include provisions for waiver of subrogation. Page 5 of 12 R6876.0001\1240449.2 7-8 ARTICLE 4 TERMINATION 4.1 Termination of Agreement (a)Unless sooner terminated pursuant to subsection (b)of this Section, this Agreement shall terminate upon CITY's written notice to CONSULTANT of CITY's reasonable satisfaction of the completion all terms and conditions of this Agreement by CONSULTANT. (b)This Agreement may be terminated at any time prior to completion, with or without cause,by either party upon ten (10)days prior written notice.Notice shall be deemed served if completed in compliance with Section 7.13. ARTICLE 5 OWNERSHIP OF DOCUMENTS 5.1 Ownership of Documents and Work Product All documents,plans,specifications,reports,photographs,images,video files and media created or developed by CONSULTANT pursuant to this Agreement ("Written Products")shall be and remain the property of the CITY.CITY acknowledges and agrees that all plans,specifications,reports and other design documents prepared by CONSULTANT pursuant to this Agreement shall be used exclusively on this Project and shall not be used for any other work without the written consent of CONSULTANT.In the event CITY and CONSULTANT permit the reuse or other use of the plans,specifications, reports or other design documents,CITY shall require the party using them to indemnify and hold harmless CITY and CONSULTANT regarding such reuse or other use,and CITY shall require the party using them to eliminate any and all references to CONSULTANT from the plans,specifications,reports and other design documents.All Written Products shall be considered "works made for hire,"and all Written Products and any and all intellectual property rights arising from their creation,including,but not limited to,all copyrights and other proprietary rights,shall be and remain the property of the CITY. CONSULTANT shall not obtain or attempt to obtain copyright protection as to any Written Products. CONSULTANT hereby assigns to the CITY all ownership and any and all intellectual property rights to the Written Products that are not otherwise vested in the CITY pursuant to the paragraph directly above this one. CONSULTANT warrants and represents that it has secured all necessary licenses,consents or approvals to use any instrumentality,thing or component as to which any intellectual property right exists,including computer software,used in the rendering of the services and the production of all Written Products produced under this Agreement, and that the CITY has full legal title to and the right to reproduce the Written Products. CONSULTANT shall defend,indemnify and hold the CITY,and its elected officials,officers, Page 6 of 12 R6876.0001\1240449.2 7-9 employees,servants,attorneys,designated volunteers,and agents serving as independent contractors in the role of CITY officials,harmless from any loss,claim or liability in anyway related to a claim that CITY's use of any of the Written Products is violating federal,state or local laws,or any contractual provisions,or any laws relating to trade names,licenses, franchises,copyrights,patents or other means of protecting intellectual property rights and/or interests in products or inventions.CONSULTANT shall bear all costs arising from the use of patented,copyrighted,trade secret or trademarked documents,materials, equipment,devices or processes in connection with its provision of the services and Written Products produced under this Agreement.In the event the use of any of the Written Products or other deliverables hereunder by the CITY is held to constitute an infringement and the use of any of the same is enjoined,CONSULTANT,at its expense, shall:(a)secure for CITY the right to continue using the Written Products and other deliverables by suspension of any injunction,or by procuring a license or licenses for CITY; or (b)modify the Written Products and other deliverables so that they become non- infringing while remaining in compliance with the requirements of this Agreement.This covenant shall survive the termination of this Agreement. Upon termination ofthe Project,the CONSULTANT shall deliver to the CITY all Written Products and other deliverables related to the Project.If a document is prepared by CONSULTANT on a computer,CONSULTANT shall prepare such document in a Microsoft®Word 2007 or Microsoft®Excel 2007.In addition,CONSULTANT shall provide CITY with said document both in a printed format and in an electronic format acceptable to the CITY. ARTICLE 6 PREVAILING WAGES 6.1 Prevailing Wages The CITY and CONSULTANT acknowledge that the Project is a "public work" to which prevailing wages apply.The City Council of the CITY has been provided with a determination of the prevailing rates of per diem wages and the general rate for holiday and overtime work for each craft,classification,or type of worker applicable to the Project, which is on file in the Office of the City Clerk of the CITY,copies of which may be obtained at cost from the Department of Public Works.CONSULTANT shall post a copy of the determination of the prevailing rate of per diem wages at each job site and shall pay the adopted prevailing wage rates as a minimum.Said rates are based on an eight (8)hour day,forty (40)hour week except as otherwise noted,and said rates are currently in effect. All parties to this Agreement shall strictly observe existing agreements between the Building Trades and Construction Industry groups related to wages,overtime,holidays and other special provisions.CONSULTANT shall comply with the provisions of California Labor Code Sections 1773.8,1774,1775,1776,1777.5,1777.6,1810,1811,1813and 1815.The document titled "Agreement to Comply with California Labor Law Requirements"is attached hereto and incorporated herein by this reference,and CONSULTANT shall sign and date this document and submit it to the CITY. Page 7 of 12 R6876.0001\1240449.2 7-10 CONSULTANT is aware of California Labor Code Sections 1771.1 and 1771.7,which prohibit CONSULTANT who has been found by the Labor Commissioner or the Director of Industrial Relations to be in violation of certain provisions of the Labor Code from bidding on,being awarded,or performing work as a contractor on a public works project for specified periods of time.Failure of CONSULTANT to obtain proper and adequate licensing as required by law shall constitute a failure to execute the Agreement and shall result in the forfeiture of the security of the CONSULTANT.CONSULTANT must comply with business license requirements of the CITY. ARTICLE 7 GENERAL PROVISIONS 7.1 Representation A CITY representative shall be designated by the Director of Finance and Information Technology and a CONSULTANT representative shall be designated by CONSULTANT as the primary contact person for each party regarding performance of this Agreement. 7.2 Fair Employment Practices/Equal Opportunity Acts In the performance of this Agreement,CONSULTANT shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code Sections 12940-48)and the applicable equal employment provisions of the Civil Rights Act of 1964 (42 U.S.C.200e-217),and the Americans with Disabilities Act of 1992 (42 U.S.C.§11200,et seq.). 7.3 Personnel CONSULTANT represents that it has,or shall secure at its own expense,all personnel required to perform CONSULTANT'S services under this Agreement. CONSULTANT shall make reasonable efforts to maintain the continuity of CONS ULTANT'S staff that are assigned to perform the services hereunder and shall obtain the approval of the Director of Finance and Information Technology of all proposed staff members who will perform such services.CONSULTANT may associate with or employ associates or subcontractors in the performance of its services under this Agreement,but at all times shall be responsible for their services. 7.4 Conflicts of Interest CONSULTANT agrees not to accept any employment or representation during the term of this Agreement or within twelve (12)months after completion of the work under this Agreement which is or may likely make CONSULTANT "financially interested" (as provided in California Government Code Section 1090 and 87100)in any decisions made by CITY on any matter in connection with which CONSULTANT has been retained pursuant to this Agreement. Page 8 of 12 R6876.0001\1240449.2 7-11 7.5 Legal Action (a)Should either party to this Agreement bring legal action against the other,the validity,interpretation,and performance ofthis Agreement shall be controlled by and construed under the laws of the State of California,excluding California's choice of law rules.Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior Court. (b)If any legal action or other proceeding,including action for declaratory relief,is brought for the enforcement of this Agreement or because of an alleged dispute, breach,default or misrepresentation in connection with this Agreement,the prevailing party shall be entitled to recover reasonable attorneys'fees,experts'fees,and other costs,in addition to any other relief to which the party may be entitled. (c)Should any legal action about the Project between CITY and a party other than CONSULTANT require the testimony of CONSULTANT when there is no allegation that CONSULTANT was negligent,CITY shall compensate CONSULTANT for its testimony and preparation to testify at reasonable hourly rates. 7.6 Assignment Neither this Agreement nor any part thereof shall be assigned by CONSULTANT without the prior written consent of the CITY.Any such purported assignment without written consent shall be null and void,and CONSULTANT shall hold harmless,defend and indemnify the CITY and its officers,officials,employees,agents and representatives with respect to any claim,demand or action arising from any unauthorized assignment. Notwithstanding the above,CONSULTANT may use the services of persons and entities not in CONSULTANT'S direct employ,when it is appropriate and customary to do so.CONSULTANT'S use of subcontractors for additional services shall not be unreasonably restricted by the CITY provided CONSULTANT notifies the CITY in advance. 7.7 Independent Contractor CONSULTANT is and shall at all times remain,as to the CITY,a wholly independent contractor.Neither the CITY nor any of its agents shall have control over the conduct of CONSULTANT or any of the CONSULTANT's employees,except as herein set forth,and CONSULTANT is free to dispose of all portions of its time and activities which it is not obligated to devote to the CITY in such a manner and to such persons,firms,or corporations at the CONSULTANT wishes except as expressly provided in this Agreement. CONSULTANT shall have no power to incur any debt,obligation,or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent.CONSULTANT shall not,at any time or in any manner,represent that it or any of its agents,servants or employees,are in any manner agents,servants or employees of CITY.CONSULTANT agrees to pay all Page 9 of 12 R6876 .0001 \1240449.2 7-12 required taxes on amounts paid to CONSULTANT under this Agreement,and to indemnify and hold the CITY harmless from any and all taxes,assessments,penalties,and interest asserted against the CITY by reason of the independent contractor relationship created by this Agreement.CONSULTANT shall fully comply with the workers'compensation law regarding CONSULTANT and its employees.CONSULTANT further agrees to indemnify and hold the CITY harmless from any failure of CONSULTANT to comply with applicable workers'compensation laws.The CITY shall have the right to offset against the amount of any fees due to CONSULTANT under this Agreement any amount due to the CITY from CONSULTANT as a result of its failure to promptly pay to the CITY any reimbursement or indemnification arising under this Article. 7.8 Titles The titles used in this Agreement are for general reference only and are not part of the Agreement. 7.9 Entire Agreement This Agreement,including any other documents incorporated herein by specific reference,represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations,representations or agreements, either written or oral.This Agreement may be modified or amended,or provisions or breach may be waived,only by subsequent written agreement signed by both parties. 7.10 Construction In the event of any asserted ambiguity in,or dispute regarding the interpretation of any matter herein,the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Agreement or who drafted that portion of the Agreement. 7.11 Non-Waiver of Terms,Rights and Remedies Waiver by either party of anyone or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement.In no event shall the making by the CITY of any payment to CONSULTANT constitute or be construed as a waiver by the CITY of any breach of covenant,or any default which may then exist on the part of CONSULTANT,and the making of any such payment by the CITY shall in no way impair or prejudice any right or remedy available to the CITY with regard to such breach or default. 7.12 Severability If any term or portion of this Agreement is held to be invalid,illegal,or otherwise Page 10 of 12 R6876.0001\1240449.2 7-13 unenforceable by a court of competent jurisdiction,the remaining provisions of this Agreement shall continue in full force and effect. 7.13 Notice Except as otherwise required by law,any notice,request,direction,demand, consent,waiver,approval,payment or other communication required or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) by personal service or (b)by certified or registered mail,postage prepaid,return receipt requested,and addressed to the parties at the addresses stated below,or at such other address as either party may hereafter notify the other in writing as aforementioned: If to CONSULTANT: NexislS,Inc. 27202 West Turnberry Lane,Suite 100 Valencia,CA 91355 If to CITY: Dennis McLean,Director of Finance and Information Technology City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes,CA 90275 A party may change its address by giving written notice to the other party. Thereafter,any notice or other communication shall be addressed and transmitted to the new address.If sent by mail,any notice,tender,demand,delivery or other communication shall be deemed effective three (3)business days after it has been deposited in the United States mail.For purposes of communicating these time frames,weekends and federal, state,religious,County of Los Angeles or CITY holidays shall be excluded.No communication via facsimile or electronic mail shall be effective to give any such notice or other communication hereunder. [Signatures on next page] Page 11 of 12 R6876.0001\1240449.2 7-14 IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the date and year first above written. "CONSULTANT" NexuslS,Inc. BY:------------ Printed Name Title Date "CITY" CITY OF RANCHO PALOS VERDES A Municipal Corporation -Carolyn Lehr,City Manager Date ATTEST: CITY CLERK Page 1 of 12 R6876.0001\1240449.2 7-15 AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS [Labor Code 1720,1773.8,1775,1776,1777.5,1813,1860,1861,3700] The undersigned Contractor certifies that it is aware of and hereby agrees to fully comply with the following provisions of California law: 1.Contractor acknowledges that this contract is subject to the provisions of Division 2,Part 7,Chapter 1 (commencing with Section 1720)of the California Labor Code relating to public works and the awarding public agency ("Agency")and agrees to be bound by all the provisions thereof as though set forth in full herein. 2.Contractor agrees to comply with the provisions of California Labor Code Section 1773.8 which requires the payment of travel and subsistence payments to each worker needed to execute the work to the extent required by law. 3.Contractor agrees to comply with the provisions of California Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages.The Contractor shall,as a penalty to the Agency,forfeit not more than fifty dollars ($50)for each calendar day,or portion thereof,for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under the contract by Contractor or by any subcontractor. 4.Contractor agrees to comply with the provisions of California Labor Code Section 1776 which require Contractor and each subcontractor to (1)keep accurate payroll records,(2)certify and make such payroll records available for inspection as provided by Section 1776,and (3)inform the Agency of the location of the records.The Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors. 5.Contractor agrees to comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects,and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors. 6.Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours.The Contractor shall,as a penalty to the Agency,forfeit twenty-five dollars ($25)for each worker employed in the execution of the contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in anyone calendar day and 40 hours in 7-16 AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS Page 2 anyone calendar week in violation of the provisions of Division 2,Part 7,Chapter 1,Article 3 of the California Labor Code. "CONSULTANT" NexuslS,Inc. BY:------------ Printed Name Title Date 7-17 » ATTACHMENT A Quote: Project: Created: Valid: 40134 City of RPV _UC_11-17-09z 7/1/2010 7/21/2010 CityofRPV UNE#PART# VoIP LAN (3560) 1 WS-C3560-24TS-S 2 GLC-SX-MM= 3 CON-SNTP-356024TS 4 CAB-AC Call Processing/VM 1 UNIFIED-CM7.1 2 CCX-70-CM-BUNDLE 3 CUCMS-EVAL-K9 4 CM7-DL-PAK 5 MCS781614-K9-CMC2 6 CAB-AC 7 CON-SNT-1614C2 8 LIC-CM7.1-7816= 9 CON-ESW-LIC7816 10 LIC-CM-DL 11 LIC-CM-DL-lO Gateway Router 1 C2821-YSEC/K9 2 PWR-2821-51-AC 3 ROUTER-SDM-CD 4 MEM2800-256D-INC 5 ACS-2821-51-STAN 6 VIC2-4FXO 7 VWIC2-1MFT-TI/EI 8 CAB-AC 9 S28NRAISK9-12424T 10 MEM2800-64U128CF 11 PVDM2-32U64 12 CON-SNT-C2821VK9 EXT.PRICE UNIT PRICE DISC.USTPRICE 0.00 0.00 0.00%0.00 Included Included 0.00%Included Included Included 0.00%Included Included Included 0.00%Included 5.040.00 2.520.00 37.00%4.000.00 0.00 0.00 0.00%0.00 544.00 272.00 15.00%320.00 5.033.70 2.516.85 37.00%3.995.00 1.426.30 713.15 15.00%839.00 0.00 0.00 0.00%0.00 315.00 315.00 37.00%500.00 $12,359.00 0.00 0.00 0.00%0.00 4.536.00 4.536.00 37.00%7.200.00 680.00 680.00 15.00%800.00 0.00 0.00 0.00%0.00 $5,216.00 4.410.00 4.410.00 37.00%7.000.00 0.00 0.00 0.00%0.00 761.60 761.60 15.00%896.00 $5,171.60 $22,746.60 3.587.85 3.587.85 37.00%5.695.00 Included Included 0.00%Included Included Included 0.00%Included Included Included 0.00%Included Included Included 0.00%Included 1.008.00 504.00 37.00%800.00 819.00 819.00 37.00%1.300.00 0.00 0.00 0.00%0.00 0.00 0.00 0.00%0.00 0.00 0.00 0.00%0.00 945.00 945.00 37.00%1.500.00 450.50 450.50 15.00%530.00 $6,810.35 $6,810.35 1.886.85 1.886.85 37.00%2.995.00 630.00 315.00 37.00%500.00 294.95 294.95 15.00%347.00 0.00 0.00 0.00%0.00 $2,811.80 $2,811.80 Gateway Router VoIP LAN (3560) Call Processing/VM Catalvst 3560 24 10/100 +2 SFP IPB ImaCle GE SFP.LC connector SX transceiver SMARTNET 24X7X4 Catalvst 3560 24 10/ AC Power Cord (North America).C13.NEMA 5-15P.2.1m Osco Unity Connection 7.1 MCS 7825 IBM Appliance Power Cord -US.Can.Mex.PRo Phil.Ven.Tai.Col.Ecu SMARTNET 24X7X4 Cisco Unity Connection 7.0 MCS 7825 IBM 2821 Voice Security Bundle.PVDM2-32.Adv IP Serv.64F/256D Osco 2821/51 AC power supply CD for SDM software 256MB DDR DRAM Memorv factorY default for the Cisco 2800 Osco 2821/51 Standard Accessorv Kit Four-port Voice Interface Card -FXO (Universal) I-Port 2nd Gen Multifiex Trunk Voice/WAN Int.Card -TI/EI AC Power Cord (North America).C13.NEMA 5-15P.2.1m Cisco 2800 AISK9-AISK9 FEAT SET FACTORY UPG FOR BUNDLES 64 to 128 MB CF Factorv UDClrade for Osco 2800 Series PVDM2 32-channel to 64-channel factorY uDCIrade SMARTNET 8X5XNBD 2821 Voice Bundle.PV Unity Connection 7.x Software Unity Connection.24 POrts.100 users -All user Features ESSENTIAL SW Unity 24 POrts.100 users ESSENTIAL SW Unity Connection 7.x SW Top Lvi 1 CUCM 7.1 top level part number 2 CCX 7.0 UCM 5 Seat ENH Bundle -ONLY with NEW UCM 2 CUCMS MonitorinCl Bundle Evaluation 1 CUCM 7.0 DL PAK 2 Unified CM 7.1 7816-14 Appliance.0 Seats 2 AC Power Cord (North America).C13.NEMA 5-15P.2.1m 2 SMARTNET 8XSXNBD Unified CM 7.1 7816-14 Aopliance.0 Seat 2 Ucense Unified CM 7.1 7816 Aopliance.500 seats 2 ESSENTIAL SW Ucense Unified CM 1 Top level part number for Unified CM Device Ucenses 1 Unified CM Device Ucense -10 units 1 1 1 1 1 2 1 1 1 1 1 1 1 2 1 1 QTY DESCRIPTION MCS7825I4-K9-UCB1 UNITY-PWR-US CON-SNTP-2514KUBI UNITYCN7-K9 UNITYCN7-100USR CON-ESW-UN7100R CON-ESW-UNITYCN7 12 13 14 15 16 17 18 Engineering Notes: 7-18 » ATTACHMENT A Quote: Project: Created: Valid: 40134 City of RPV_UC_1l-17-Q9z 7/1/2010 7/21/2010 Cisco Unified Communications Manager on redundant MCS 7816 Servers providing Call processing only for up to 500 users. Cisco Unity Connection Server on MC5782S Server licensed for 100 VM users. It is assumed all existing phone licenses will be converted to Device License Units. Cisco 3560 24 port 10/100 switch for Cisco Unified Communications Core Networking. 2 SFP Multimode transceivers for fiber uplink. Cisco 2821 Gateway router for PSTN Connectivity. 8 FXO ports for analog trunks, 1 Tl port for PRI trunk. 24x7x4 Smartnet on all hardware. Extract Configuration from existing System Configure Unified Communications Manager Servers Import User data. Upgrade users from Unity to Unity Connection. Configure 3560 Switch Configure 2821 Router as Voice Gateway. Provide approximately 1 Day cutover support after the close of business hours during a weekend. Provide half day Administrative knowledge transfer. This Quote includes Materials and Manufacturer Warranty as indicated above. This quote is for DROP SHIP ONLY.Nexus IS will only warrant Drop Ship designs that are a result of a paid professional services engagement. All returns or exchanges are at the discretion of the Manufacturer. Customer agrees to abide by the Manufacturer return policy and will not hold Nexus liable for returns. Equipment Total $28,211.40 Warranty &Other services Total $4,157.35 One-TIme-Discount:($3,582.40) Schedule A Subtotal:$28,786.35 Shipping &Handling:$447.80 Estimated Sales Tax (9.75%):$2,401.33 Total Investment:$31,635.48 7-19 ATTACHMENT A » Quote: Project: Created: Valid: 40134 City of RPV_UC_1l-17-09z 7/1/2010 7/21/2010 Payment due in accordance with Professional Services Agreement,dated July 7,2010 "The materials contained and expressed in this proposal represent the exdusive intellectual property of NEXUS IS and are intended for use of the customer. Any reproduction,distribution,or unauthorized sharing of this information without the express written consent of NEXUS IS executive authority is strictly prohibited.' CLIENTSIGNATURE BELOWACKNOWLEDGES THAT CLIENTHAS READ AND ACCEPTED THE TERMS AND CONDITIONS OF THE ABOVE REFERENCED CONTRACT. THE CLIENTAUTHORIZES NEXUS IS TO OBTAIN CREDITINFORMATION PRIOR TO ACCEPTING THIS ORDER. $31,635.48 Client Name: Title: Nexus IS Name: Title: Signature:Signature: Date:Date: 7-20 » Connect Collaborate Create Attachment A Quote: Project: Created: Valid: 40134 City of RPV_UCl1-17-09z 7/1/2010 7/21/2010 CityofRPV UNE#PART# VolP LAN (3560) 1 WS-C3560-24TS-S 2 GLC-SX-MM= 3 CON-SNTP-356024TS 4 CAB-AC Call Processing/VM 1 UNIFIED-CM7.1 2 CCX-70-CM-BUNDLE 3 CUCM5-EVAL-K9 4 CM7-DL-PAK 5 MC5781614-K9-CMC2 6 CAB-AC 7 CON-SNT-1614C2 8 UC-CM7.1-7816= 9 CON-ESW-UC7816 10 UC-CM-DL 11 UC-CM-DL-lO Gateway Router 1 C2821-VSEC/K9 2 PWR-2821-51-AC 3 ROUTER-SDM-CD 4 MEM2800-256D-INC 5 ACS-2821-51-STAN 6 VICZ-4FXO 7 VWICZ-IMFT-TI/EI 8 CAB-AC 9 S28NRAISK9-12424T 10 MEM2800-64UI28CF 11 PVDM2-32U64 12 CON-SNT-C2821 VK9 EXT.PRICE UNIT PRICE DISC.USTPRICE 0.00 0.00 0.00%0.00 Included Included 0.00%Included Included Included 0.00%Included Included Included 0.00%Included 0.00 0.00 100.00%4.000.00 0.00 0.00 0.00%0.00 0.00 0.00 100.00%320.00 0.00 0.00 100.00%3.995.00 0.00 0.00 100.00%839.00 0.00 0.00 0.00%0.00 0.00 0.00 100.00%500.00 $0.00 0.00 0.00 0.00%0.00 0.00 0.00 100.00%7.200.00 0.00 0.00 100.00%800.00 0.00 0.00 0.00%0.00 $0.00 0.00 0.00 100.00%7.000.00 0.00 0.00 0.00%0.00 0.00 0.00 100.00%896.00 $0.00 $0.00 0.00 0.00 100.00%5.695.00 Included Included 0.00%Included Included Included 0.00%Included Included Included 0.00%Included Included Included 0.00%Included 0.00 0.00 100.00%800.00 0.00 0.00 100.00%1.300.00 0.00 0.00 0.00%0.00 0.00 0.00 0.00%0.00 0.00 0.00 0.00%0.00 0.00 0.00 100.00%1.500.00 0.00 0.00 100.00%530.00 $0.00 $0.00 0.00 0.00 100.00%2.995.00 0.00 0.00 100.00%500.00 0.00 0.00 100.00%347.00 0.00 0.00 0.00%0.00 $0.00 $0.00VolPLAN(3560) Gateway Router Call Processing/VM DESCRIPTION Catalvst 3560 24 10/100 +2 SFP IPB Imaqe GE SFP.LC connector SX transceiver SMARTNET 24X7X4 Catalvst 3560 24 101 AC Power Cord (North America).C13.NEMA 5-15P.2.1m Cisco Unity Connection 7.1 MCS 7825 IBM Appliance Power Cord -US.Can.Mex.PRo Phil.Yen.Tai.Col.Ecu SMARTNET 24X7X4 Osco Unity Connection 7.0 MCS 7825 IBM CUCM 7.1 top level part number CCX 7.0 UCM 5 Seat ENH Bundle -ONLY with NEW UCM CUCMS MonitorinQ Bundle Evaluation CUCM 7.0 DL PAK Unified CM 7.1 7816-14 Appliance.0 Seats AC Power Cord (North America).C13.NEMA 5-15P.2.1m SMARTNET 8XSXNBD Unified CM 7.1 7816-14 Appliance.0 Seat Ucense Unified CM 7.1 7816 Appliance.500 seats ESSENTIAL SW Ucense Unified CM Top level part number for Unified CM Device Ucenses Unified CM Device Ucense -10 units Unity Connection 7.x Software Unity Connection.24 POrts.100 users -All user Features ESSENTIAL SW Unity 24 POrts.100 users ESSENTIAL SW Unity Connection 7.x SW Top Lvi 2821 Voice Security Bundle.PVDM2-32.Adv IP Serv.64F/256D Cisco 2821151 AC power supply CD for SDM software 256MB DDR DRAM Memorv factOry default for the Cisco 2800 Cisco 2821/51 Standard Accessorv Kit Four-port Voice Interface Card -FXO (Universal) I-Port 2nd Gen Multiflex Trunk Voice/WAN Int.Card -TI/EI AC Power Cord (North America).C13.NEMA 5-15P.2.1m Osco 2800 AISK9-AISK9 FEAT SET FACTORY UPG FOR BUNDLES 64 to 128 MB CF Factorv UDQrade for Cisco 2800 Series PVDM2 32-ehannel to 64-ehannel factOry uDQrade SMARTNET 8XSXNBD 2821 Voice Bundle.PV 1 2 2 1 2 2 2 2 2 1 1 1 2 1 1 1 1 1 1 1 2 1 1 1 1 1 1 QTY MCS7825I4-K9-UCBl UNTIY-PWR-U5 CON-SNTP-25I4KUBI UNITYCN7-K9 UNTIYCN7-100USR CON-ESW-UN7100R CON-ESW-UNTIYCN7 16 17 18 12 13 14 15 Engineering Notes: 7-21 » Connect Collaborate Create Attachment A Quote: Project: Created: Valid: 40134 City of RPV_UCl1-17-09z 7/1/2010 7/21/2010 **HARDWARE SHOWN FOR DEMONSTRATION PURPOSES** Cisco Unified Communications Manager on redundant MCS 7816 servers providing Call processing only for up to 500 users. Cisco Unity Connection server on MCS7825 server licensed for 100 VM users. It is assumed all existing phone licenses will be converted to Device License Units. Cisco 3560 24 port 10/100 switch for Cisco Unified Communications Core Networking. 2 SFP Multimode transceivers for fiber uplink. Cisco 2821 Gateway router for PSTN Connectivity. 8 FXO ports for analog trunks, 1 T1 port for PRI trunk. 24x7x4 Smartnet on all hardware. Extract Configuration from existing System Configure Unified Communications Manager servers Import User data. Upgrade users from Unity to Unity Connection. Configure 3560 Switch Configure 2821 Router as Voice Gateway. Provide approximately 1 Day cutover support after the dose of business hours during a weekend. Provide half day Administrative knowledge transfer. This Quote indudes This quote is for professional services only.Any listing of equipment is for reference purposes only and is not being sold. Installation pricing estimated,pending completed Scope of Work.Please add appropriate sales Tax. Professional services Total: Total Investment: $13,798.79 $13,798.79 7-22 » Connect Collaborate Create Attachment A Quote: Project: Created: Valid: 40134 City of RPV_UC_11-17-09z 7/1/2010 7/21/2010 Payment due in accordance with Professional SelVices Agreement,dated July 7,2010 "The materials contained and expressed in this proposal represent the exclusive intellectual property of NEXUS IS and are intended for use of the customer. Any reproduction,distribution,or unauthorized sharing of this information without the express written consent of NEXUS IS executive authority is strictly prohibited." CLIENTSIGNATURE BELOWACKNOWLEDGES THAT CLIENTHAS READ AND ACCEPTED THE TERMS AND CONDI1IONS OF THE ABOVEREFERENCED CONTRACT. THE CLIENTAUTHORIZES NEXUS IS TO OBTAIN CREDITINFORMATION PRIOR TO ACCEPTING THIS ORDER. Client Name: Title: Nexus IS Name: Title: Signature:Signature: Date:Date: 7-23 t.J E ~,"US»§~""~ ,/ConnCleIColl<lbor~IICrQllt.ATTACHMENT B -SCOPE OF PROFESSIONAL SERVICES CITY OF RANCHO PALOS VERDES UC 7.0 AND UNITY VM UPGRADE City of Rancho Palos Verdes CISCO UC 7.0 and Unity VM Upgrade Project Professional Services Overview 7-24 NE US» ConnCldCollaborallCrtalll ATTACHMENT B -SCOPE OF PROFESSIONAL SERVICES CITY OF RANCHO PALOS VERDES UC 7.0 AND UNITY VM UPGRADE City of Rancho Palos Verdes CISCO UC 7.0 and Unity VM Upgrade Project Professional Services Overview 7-25