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CC 2014-10-28_08.c. Award Software Agreement OpenGov Inc p,RR O►•a INCORPORATED Z MEMORANDUM V m * JULY 10. 1911 c�< F 0 RN\P TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: CONSIDERATION OF SOFTWARE AGREEMENT WITH OPENGOV, INC. DATE: OCTOBER 28, 2014 RECOMMENDATION: It is recommended the City Council authorize the City Manager to enter into a software agreement with OpenGov, Inc. and appropriate $4,900 from the General Fund unreserved balance. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The annual cost of OpenGov software is $4,900. The General Fund unreserved balance can sufficiently support this request. BACKGROUND: OpenGov software is a web-based platform that will provide financial information to both internal and external users. It provides an intuitive, user-friendly interface that allows users to easily access the City's financial and budgetary information. Over 100 municipal clients in California and around the nation have launched the OpenGov platform in an effort to make government finances more transparent, build civic engagement and increase community trust. The software makes it easy for users to see financial data in both a graphical/visual format as well as raw numbers, enabling simple analysis of trends over time as well as side by side comparisons. The City's purchasing policy allows for the City Manager to enter into contracts for less than $25,000 if the item was budgeted. However, staff did not anticipate entering into this contract when the budget was prepared and would have otherwise requested Council approval at the Budget. Update Review. The cost of the software is increasing this month. However, OpenGov has indicated that they will honor the current price quote through October 28, 2014, saving the City $1,500 each year for the cost of the software. ANALYSIS OF ISSUES: Staff has found that the City's financial management software, Eden, is limited in the reports that can be generated and cumbersome for casual users to negotiate. It is difficult for departments to extract data into anything other than simple list-type reports, no graphical or trend analysis is built into Eden. All analysis of the data must be Item 8.c. - Page 1 CITY COUNCIL CONSIDERATION OF CONTRACT AWARD TO OPENGOV OCTOBER 28, 2014 PAGE 2 performed by staff, which can be very time consuming. In addition, this data is only available to staff that have login access to the Eden system; it is not publicly available in any format except the City's published budget, annual financial reports, and cash disbursement reports. OpenGov provides for citizens and staff to access the City's financial data without needing any specialized software knowledge, provides ease of data analysis, and communicates complex budget and financial information in an easy-to-understand way. ALTERNATIVES: The following alternatives are presented for the City Council's consideration: - Approve staff recommendations; - Do not approve staff recommendations; - Modify staff recommendations and approve; - Provide direction to staff. ADVANTAGES: Use of the OpenGov platform will increase the City's ability to access, analyze and share financial and budgetary data. It will provide additional transparency and could lead to increased trust and civic engagement. DISADVANTAGES: There is no disadvantage identified in this recommendation other than the cost. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 23, 2014. The Agenda and report were posted on the City's website on Friday, October 24, 2014. No public comments were received. Attachments: 1. OpenGov, Inc Software Agreement Item 8.c. - Page 2 ATTACHMENT-1 OPENGOV, INC.SOFTWARE AGREEMENT CU'ST,OMEiR1: :I'OR:MAY 9 ORGANIZATION CONTACT BILLING CONTACT(If Different) Customer Name: City of Arroyo Grande, CA Contact Name: Address: Telephone: Email: Effective Date: Software Services: OpenGov Platform:A proprietary web application that visualizes the customer's general ledger,chart of accounts,current year spending, and balance sheet, making multiple years of financial.data accessible to citizens and staff through an online portal. The customer will receive access to OpenGov's Annual Budget View, Current Year View, Balance Sheet View, and Transactions View. Fees: In consideration of Customer using the Services identified above, Customer shall pay OpenGov, Inc. a fee of $4,900, billed annually in advance for the period of the agreement, commencing on the Effective Date. Welcome to OpenGov! Thanks for using our software. This.Software Agreement ("Agreement"F iss end info between OpenGov, Inc., with its principal place of business at 1023 Shoreline Blvd, Suite 100, Mountain View, CA 94043 ("OpenGov"), and you, the entity identified above ("Customer"), as of the Effective Date. This Agreement includes and incorporates the OpenGov Terms and Conditions-attached as Appendix A. By signing this Agreement, Customer acknowledges that it has reviewed,and agrees to be legally bound by,the OpenGov Terms and Conditions. Each party's acceptance of this Agreement is conditional upon the other's acceptance of the terms in the Agreement to the exclusion of all other-terms. Customer Signature: Printed Name: Title: Date: OpenGov Inc. Signature: Printed Name: Title: Date: Item 8.c. - Page 3 Appendix A OpenGov Terms and Conditions 1. SOFTWARE SERVICES l.I Subject to the terms and conditions of these OpenGov Terms and Conditions(the"Agreement"), OpenGov will use commercially reasonable efforts to perform the software services(the"Software Services") identified in the applicable Software Agreement entered into by OpenGov and Customer("Software Agreement"). 1.2 Customer•understands that OpenGov's performance depends on Customer timely providing OpenGov with a copy of the Customer's chart of accounts in.csv or.xis format. In addition,Customer agrees to provide OpenGov with five or more years of general ledger data, also in.csv or.xIs format, including budget data for the current year and actual expense and revenue data for past years. Any dates or time periods relevant to OpenGov's.performance will be extended appropriately and equitably to reflect any delays caused by Customer's failure to timely deliver any such materials. OpenGov shall not be liable for any delays in performance under this Agreement resulting from Customer's failure to meet these obligations. 2. RESTRICTIONS AND RESPONSIBILITIES 2.1 This is a contract for access to the Software Services and Customer agrees not to, directly or indirectly: reverse engineer, decompile,disassemble,or otherwise attempt to discover the source code,object code,or underlying structure,ideas,or algorithms of the Software Services, documentation or data related to the Software'Services, except to the extent such a restriction is limited by applicable law;modify,translate,or create derivative works based on the Software Services;or copy,rent,lease,distribute, assign,sell, or otherwise commercially exploit,transfer,or encumber rights to the Software Services;or remove any proprietary notices. 2.2 Customer will use the Software Services only in compliance with all applicable laws and regulations(including, but not limited to, any export restrictions). 2.3 Customer shall be responsible for obtaining and maintaining any equipment and other services needed to connect to, access or otherwise use the Software Services and Customer shall also be responsible for(a)ensuring that such equipment is compatible with the Software Services, (b) maintaining the security of such equipment, user accounts, passwords and files, and (c) for all uses of Customer user accounts with or without Customer's knowledge or consent. 3. OWNERSHIP.OpenGov retains all right,title,and interest in the Software Services and all intellectual property rights(including all past,present,and future rights associated with works of authorship,including exclusive exploitation rights,copyrights,and moral rights, trademark and trade name rights and similar rights, trade secret rights, patent rights, and` by other proprietary rights in intellectual property of every kind and nature)therein 3.1 OpenGov warrants that OpenGov is the owner of the Software Services and has the right to license it to third parties. OpenGov will defend, at its expense, any action brought against Customer based on a claim that the Software Services infringe upon a United States patent, copyright, trade secret, or other proprietary right of a third party. OpenGov agrees to indemnify Customer and hold Customer harmless against damages and costs, including attorney's fees, finally awarded against Customer in such actions. OPENGOV'S COMBINED LIABILITY UNDER THIS SECTION AND UNDER SECTION 9 SHALL NOT EXCEED$25,000. 4. CONFIDENTIALITY. Each party (the "Receiving Party") agrees not to disclose (except as permitted herein) any Confidential Information of the other party (the "Disclosing Party") without the Disclosing Party's prior written consent. "Confidential Information" means all confidential business, technical, and financial information of the disclosing party that is marked as "Confidential" or an equivalent designation or that should reasonably be understood to be confidential given the nature of the information and/or the circumstances surrounding the disclosure (including the terms of the applicable Software Agreement). OpenGov's Confidential Information includes, without limitation, the software underlying the Software Services and all documentation relating to the Software Services."Confidential Information"does not include"Public Data,"which is data that the Customer has previously released or would be required to release according to applicable federal, state, or local public records laws. The Receiving Party agrees: (i) to use and disclose the Confidential Information only in connection with this Agreement; and(ii)to protect such Confidential Information using the measures that Receiving Party employs with respect to its own Confidential Information of a similar nature, but in no event with less than reasonable care.Notwithstanding the foregoing,Confidential Information does not include information that:(i)has become publicly known through no breach by the receiving party; (ii)was rightfully received by the receiving party from a third party without restriction on use or disclosure; or (iii) is independently developed by the Receiving Party without access to such Confidential Information. Notwithstanding the above, the Receiving Party may disclose Confidential Information to the extent required by law or court order, provided that prior written notice of such required disclosure and an opportunity to oppose or limit disclosure is given to the Disclosing Party. 5. DATA LICENSE. Customer grants OpenGov a non-exclusive, transferable, perpetual,worldwide, and royalty-free license to use any data or information submitted by Customer to OpenGov for the development of new software or the provision of the Software Services. 6. PAYMENT OF FEES.The fees for the Software Services("Fees")are set forth in the applicable Software Agreement. Customer shall pay all Fees within thirty(30)days after the date of OpenGov's invoice(which OpenGov typically sends 45 days after the Effective Date). 7. TERM&TERMINATION 7.1 Subject to compliance with all terms and conditions, the initial term of this Agreement shall be from the Effective Date and shall continue for a period of five(5)twelve(12)month terms,for a total of sixty(60)months from that date. The customer will be billed on an annual basis for each twelve (12) month term, and either party may terminate this Agreement at the end of the applicable term, without penalty,with thirty(30)days prior written.notice.If either party materially breaches any term of this Agreement and fails to cure Item 8.c. - Page 4 such breach within thirty(30)days after notice by the non-breaching party(ten(10)days in the case of non-payment),the non-breaching party may terminate this Agreement immediately upon notice. 7.2 Upon termination,Customer will pay in full for all Software Services performed up to and including the effective date of termination. Upon any termination of this Agreement:(a)all Software Services provided to Customer hereunder shall immediately terminate;and(b) each party shall return to the other party or, at the other party's option, destroy all Confidential Information of the other party in its possession. 7.3 All sections of this Agreement which by their nature should survive termination will survive termination,including,without limitation, accrued rights to payment, confidentiality obligations,warranty disclaimers,and limitations of liability. 8. WARRANTY AND DISCLAIMER 8.1 OpenGov represents and warrants that:(i)it has all right and authority necessary to enter into and perform this Agreement;and(ii) the Software Services shall be performed in a professional and workmanlike manner in accordance with generally prevailing industry standards. 8.2 Customer represents and warrants that(i) it has all right and authority necessary to enter into and perform this Agreement; (ii) it owns all right, title,and interest in and to all data provided to OpenGov for use in and in connection with this Agreement,or possesses the necessary authorization thereto;and(iii)OpenGov's use of such materials in connection with the Software Services will not violate the rights of any third party. 8.3 OPENGOV DOES NOT WARRANT THAT THE SOFTWARE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SOFTWARE SERVICES. EXCEPT AS SET FORTH IN THIS SECTION 8,THE SOFTWARE SERVICES ARE PROVIDED"AS IS"AND OPENGOV DISCLAIMS ALL WARRANTIES,EXPRESS OR IMPLIED,INCLUDING,BUT NOT LIMITED TO,IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE, FITNESS FOR A PARTICULAR PURPOSE,AND NON-INFRINGEMENT. 9. LIMITATION OF LIABILITY. NEITHER PARTY, NOR ITS SUPPLIERS, OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND EMPLOYEES,SHALL BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR RELATED TERMS AND CONDITIONS UNDER ANY CONTRACT,NEGLIGENCE,STRICT LIABILITY,OR OTHER THEORY: (A) FOR ERROR OR INTERRUPTION OF USE OR FOR LOSS OR INACCURACY OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES OR LOSS OF BUSINESS; (B) FOR ANY INDIRECT, EXEMPLARY, PUNITIVE, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES; OR (C) FOR ANY MATTER BEYOND SUCH PARTY'S REASONABLE CONTROL, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE. IN NO EVENT SHALL EITHER PARTY'S AGGREGATE, CUMULATIVE LIABILITY FOR ANY CLAIMS ARISING OUT OF OR IN ANY WAY_RE LATE D-T-O-T-HIS-AGREEMENT EXCEED-$25;000. 10. MISCELLANEOUS.Capitalized terms not otherwise defined in these Terms and Conditions have the meaning set forth in the applicable Software Agreement. Neither party shall be held responsible or liable for any losses arising out of any delay or failure in performance of any part of this Agreement,other than payment obligations,due to any act of god,act of governmental authority, or due to war, riot, labor difficulty, failure of performance by any third party service,utilities, or equipment provider,or any other cause beyond the reasonable control of the party delayed or prevented from performing. OpenGov shall have the right to use and display Customer's logos and trade names for marketing and promotional purposes in connection with OpenGov's website and marketing materials,subject to Customer's trademark usage guidelines(as provided to OpenGov). If any provision of this Agreement is found to be unenforceable or invalid,that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable. This Agreement is not assignable or transferable by either party without the other party's prior written consent,provided however that either party may assign this Agreement to a successor to all or substantially all of its business or assets. This Agreement(including the Software Agreement)is the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements,communications, and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both parties. No agency, partnership,joint venture, or employment is created as a result of this Agreement and neither party has any authority of any kind to bind the other party in any respect. In any action or proceeding to enforce rights under this Agreement, the . prevailing party will be entitled to recover costs and attorneys'fees. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered;when receipt is electronically confirmed, if transmitted by facsimile or e-mail;the day after it is sent,if sent for next day delivery by recognized overnight delivery service;and upon receipt, if sent by certified or registered mail, return receipt requested. This Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provisions. Jurisdiction of any litigation arising from the Agreement will be in San Luis_Obispo County,California. 1 i. INSURANCE. OpenGov shall maintain for the duration of.this Agreement the following insurance: 11.1 Commercial General Liability including coverage for premises, products --and completed operations, independent contractors/vendors, personal injury and contractual obligations with combined single limits of coverage of at least $1,000,000 per occurrence. 11.2 Automobile Liability,including owned, non-owned and hired vehicles,with at least the following limits of liability:(1)Primary Bodily Injury with limits of at least$500,000 per person, $1,000,000 per occurrence; and (2) Primary Property Damage of at least$250,000 per occurrence;or(3)Combined single limits of$1,000,000 per occurrence. 11.3 Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than$1,000,000 per accident or disease. Item 8.c. - Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.c. - Page 6