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R-03-06-12-10C2 - 6/12/2003RESOLUTION NO. R -03-06-12-10C2 WHEREAS, the City has a need for technical consulting services for the upgrade of the City's financial computer information system, and WHEREAS, Epic Edge, Inc. has submitted an Agreement for Consulting Services to provide said services, and WHEREAS, the City Council desires to enter into said agreement with Epic Edge, Inc., Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Agreement for Consulting Services with Epic Edge, Inc. for the upgrade of the City's financial computer information system, a copy of said agreement being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 12th day of June, 2003. / iIIIIIIIIIIP Nqpr WE L, Mayor Cit# f Round Rock, Texas z CHRISTINE R. MARTINEZ, City Secr ary @PFDesktop\.,ODMA/WORLDOX/O:/WDOX/RESOLUTI/R30612C2.WPD/sc CITY OF ROUND ROCK AGREEMENT FOR CONSULTING SERVICES WITH EPICEDGE, INC. THIS AGREEMENT is made and entered into on this the day of the month of May, 2003, by and between the CITY OF ROUND ROCK, a Texas home -rule municipal corporation, whose offices are located at 221 East Main Street, Round Rock, Texas 78664-5299 (hereinafter referred to as the "City"), and EPICEDGE, Inc., a Texas corporation, whose offices are located at 5508 Highway 290 West, 3rd Floor, Austin, Texas 78735 (hereinafter referred to as "Consultant"). RECITALS: WHEREAS, City desires to contract for Consultant's performance of professional computer consulting services for the City's financial system upgrade, and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW, THEREFORE, WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 EFFECTIVE DATE, DURATION, AND TERM This Agreement shall be effective on the date it has been signed by every party hereto, and shall remain in full force and effect unless and until it expires by operation of the term indicated herein, or is terminated or extended as provided herein. The term of this Agreement shall be until full and satisfactory completion of the work specified herein is achieved, but in no event later than three hundred sixty-five (365) calendar days from the effective date hereof. 1.02 GENERAL CONDITIONS The General Conditions contained herein shall apply to the Scope of Services, attached hereto as Exhibit "A" and made a part hereof of all appropriate purposes. This Agreement and such Scope of Services is entered into by and between the City of Round Rock or its subsidiaries or affiliates (collectively "City") and EpicEdge. 1.03 SCOPE OF SERVICES G:\Noelle\PeoplcSoft Upgrade Info\Epic Edge Contract Final 000512971 DOGjkg EXHIBIT "A" For purposes of this Agreement, Consultant has issued its Scope of Services for the assignment(s) delineated therein. Such Scope of Services is appended to this Agreement and is labeled as Exhibit "A." Such Scope of Services shall be deemed to incorporate the General Conditions contained herein. As described in Section 2.0 of the City's Request for Offer (03- 009), the City anticipates that functional and technical assistance may be needed to implement additional PeopleSoft functionality once the core upgrade is completed. In that event, EpicEdge will provide, for the City's review and approval, a Phase 2 Scope of Services. Except with respect to the description of specific services and fees for the assignment(s) delineated therein, the General Conditions of this Agreement and this Agreement itself shall prevail over any conflicting terms therein. Taken together with the appended Scope of Services, the General Conditions contained in this Agreement shall evidence the entire understanding and agreement between the parties and supersede any prior proposals, correspondence or discussions. Consultant shall satisfactorily provide all services described under the attached Scope of Services. Consultant's undertakings shall be limited to performing services for City and/or advising City concerning those matters on which Consultant has been specifically engaged. Consultant shall perform its services in accordance with these General Conditions and this Agreement, in accordance with the appended Scope of Services, in accordance with due care, and in accordance with prevailing consulting industry standards for comparable services. 1.04 PAYMENT FOR SERVICES; SUPPLEMENTAL AGREEMENTS Payment for Basic Services: In consideration for the consulting services to be performed by Consultant, City agrees to pay Consultant the following sum(s) as stated herein: Upgrade Consulting Services $100,760.00 Unless subsequently changed by additional Supplemental Agreement to this Agreement, duly authorized by City Council Resolution, Consultant's total compensation hereunder shall not exceed $100,760.00. This amount represents the absolute limit of City's liability to Consultant hereunder unless same shall be changed by additional Supplemental Agreement hereto. Deductions. No deductions shall be made from Consultant's compensation on account of penalty, liquidated damages or other sums withheld from payments to Consultant. Additions. No additions shall be made to Consultant's compensation based upon Project claims, whether paid by City or denied. Supplemental Agreements. The terms of this Agreement may be modified by written Supplemental Agreement hereto, duly authorized by City Council Resolution, if the City decides to proceed with a Phase 2 Scope of Services; or if the City determines that there has been a significant change in (1) the scope, complexity, or character of the services to be performed in the initial phase; or (2) the duration of the initial phase. Any such Supplemental Agreement 2 must be executed by both parties within the period specified as the term of this Agreement. Consultant shall not perform any work or incur any additional costs prior to the execution, by both parties, of such Supplemental Agreement. Consultant shall make no claim for extra work done or materials furnished unless and until there is full execution of any Supplemental Agreement, and City shall not be responsible for actions by Consultant nor for any costs incurred by Consultant relating to additional work not directly authorized by Supplemental Agreement. Should any additional services be required, EpicEdge will provide services based on the hourly rates outlined in the Scope of Services. 1.05 TIMETABLES Unless otherwise indicated to Consultant in writing by City, or unless Consultant is unreasonably delayed in the orderly progress of its work by forces beyond Consultant's control, the following timetable structure and deliverable due dates set forth in the Scope of Services shall apply. 1.06 TERMS OF PAYMENT; REIMBURSABLE EXPENSES Acceptance. The purpose of the acceptance process is to confirm that each deliverable meets the expectations of both parties (City of Round Rock and EpicEdge). Since the project is based on an aggressive schedule, the timely sign -off of project deliverables will be critical to its success. Upon submittal by EpicEdge, the City shall promptly inspect each item identified as a key deliverable in Exhibit A, "Scope of Services", and shall evaluate such deliverable for completeness, accuracy, and clarity. The City shall provide written approval of the deliverable or a statement of deficiencies to EpicEdge within five (5) business days, or other timeframe mutually agreed upon by the project managers for EpicEdge and the City. EpicEdge shall resolve the deficiencies within an additional five (5) business days, or other timeframe mutually agreed upon by the project managers for EpicEdge and the City. Invoices. To receive payment for services, Consultant shall prepare and submit a series of invoices in a form acceptable to City. Each invoice for professional services shall identify the specific deliverables for which payment is requested, based on Exhibit A, "Scope of Services". All payments to Consultant shall be made on the basis of the invoices submitted by Consultant and approved by City. The City's acceptance of the deliverable(s) for which payment is requested, in accordance with the preceding paragraphs, shall constitute the basis for approval of invoices. Should additional backup material be requested by City, Consultant shall comply promptly with such request. In this regard, should City determine it necessary, Consultant shall make all records and books relating to this Agreement available to City for inspection and auditing purposes. Payment of Invoices. City reserves the right to correct any error that may be discovered in any invoice that may have been paid to Consultant and to adjust same to meet the 3 requirements of this Agreement. Following approval of invoices, City shall endeavor to pay Consultant promptly, but no later than the time period required under the Texas Prompt Payment Act described in Section 1.07 herein. Under no circumstances shall Consultant be entitled to receive interest on payments which are late because of a good faith dispute between Consultant and City or because of amounts which City has a right to withhold under this Agreement or state law. City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon Consultant's net income. Offsets. City may, at its option, offset any amounts due and payable under this Agreement against any debt (including taxes) lawfully due to City from Consultant, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise and regardless of whether or not the debt due to City has been reduced to judgment by a court. Reimbursable Expenses. Payment for customary reimbursable expenses hereunder shall not exceed the maximum sum of $0.00. City shall pay Consultant for reimbursable expenses on a monthly basis, as invoiced and documented, at actual cost. 1.07 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to Consultant will be made within thirty (30) days of the day on which City receives the performance, or within thirty (30) days of the day on which the performance of services was complete, or within thirty (30) days of the day on which City receives a correct invoice for the performance or services, whichever is later. Consultant may charge a late fee (fee shall not be greater than that which is permitted by Texas law) for payments not made in accordance with this Prompt Payment Policy; however, this policy does not apply to payments made by City in the event: 1. There is a bona fide dispute between City and Consultant concerning the services performed that causes the payment to be late; or 2. The terms of a federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds; or 3. There is a bona fide dispute between Consultant and a subcontractor or between a subcontractor and its supplier concerning the services performed which causes the payment to be late; or 4. The invoice is not mailed to City in strict accordance with instructions, if any, on any purchase order or this Agreement. 1.08 NON -APPROPRIATION 4 This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the services as determined by City's budget for the fiscal year in question. City may effect such termination by giving Consultant a written notice of termination at the end of its then -current fiscal year. 1.09 TERMINATION OR DEFAULT Termination. In connection with the work outlined in this Agreement, it is agreed and fully understood by Consultant that City may cancel or indefinitely suspend further work hereunder or terminate this Agreement either for cause or for the convenience of City, upon fifteen (15) business days' written notice to Consultant, with the understanding that immediately upon receipt of said notice all work and labor being performed under this Agreement shall cease. Consultant shall invoice City for all work satisfactorily completed and shall be compensated in accordance with the terms of this Agreement for all work accomplished prior to the receipt of said notice. No amount shall be due for lost or anticipated profits. Unless otherwise specified herein, all plans, surveys, and other data, designs and all work products related to the Project shall become the property of City upon termination of this Agreement, and shall be promptly delivered to City in a reasonably organized form without restriction on future use. Should City subsequently contract with a new consultant for continuation of services on the Project, Consultant shall cooperate in providing information. In addition to, the City may directly contract with staff currently assigned to this project by EpicEdge in the event such termination is the result of a termination for cause Default. For purposes of this Agreement, the term "default" shall mean (i) the failure of any Party to perform any material obligation in the time and manner provided by this Agreement, and (ii) the inability of EpicEdge to sustain normal business operations. Either party may terminate this Agreement in the event of a default by the other Party by providing a written Notice of Termination to the defaulting Party. Such Notice of Termination shall become effective no less than ten (10) calendar days after a Party receives such notice. Such Notice of Termination for cause shall include a statement by the terminating Party setting forth the grounds for determination of default under this section. Upon a Notice of Termination by a Party arising from its default under this Agreement, the defaulting Party shall have five (5) business days from the receipt of such notice to cure the default by making such payment or performing the required obligation. If the default is cured to the mutual satisfaction of the Parties, the Agreement shall remain in effect upon written acceptance of the cure by the Party who issued the Notice of Termination for cause. Should this Agreement be terminated by the City because of the inability of EpicEdge to sustain normal business operations, the City may (without limiting any of its other remedies) contract directly with any and all staff currently assigned to this project by EpicEdge. 5 City shall not be required to make any payments to Consultant when Consultant is in default under this Agreement, nor shall this paragraph constitute a waiver of any right, at law and at equity, which City may have if Consultant is in default, including the right to bring legal action for damages or to force specific performance of this Agreement. 1.10 CITY'S RESPONSIBILITIES Full information. City shall provide full information regarding Project requirements. City shall have the responsibility of providing Consultant with such documentation and information as is reasonably required, if any, to enable Consultant to provide the services called for. City shall cause its employees and any third parties who are otherwise assisting, advising or representing City to cooperate on a timely basis with Consultant in the provision of its services. Consultant may rely upon written information provided by City and its employees and agents as accurate and complete. Consultant may rely upon any written directions provided by City and its employees and agents concerning provision of services. Designate representatives. City shall designate, when necessary, representatives authorized to act in its behalf. City shall examine documents submitted by Consultant and render decisions pertaining thereto promptly to avoid unreasonable delay in the orderly progress of Consultant's work. Tests and inspections. City shall furnish or pay for tests, reports and inspections as required by law or Project documents. 1.11 Personnel EpicEdge warrants that all persons assigned to the project shall be employees or subcontractors of EpicEdge, and shall be fully qualified to perform the work required herein. Personnel commitments made in EpicEdge's offer shall not be changed without the prior written approval of the City. Replacement of key personnel, if approved by the City, shall be with personnel of equal or greater ability and qualifications. Before assigning an individual to any of the key positions identified in its offer and subsequent documentation, EpicEdge shall notify the City of the proposed assignment, shall introduce the individual to the appropriate representatives of the City, and shall provide to the City a resume and any other information about the individual reasonably requested by the City. The City reserves the right to interview the individual before granting approval. 1.12 Replacement of Key Personnel at City's Request The City reserves the right to require EpicEdge to replace key personnel whom the City judges to be incompetent, careless, unsuitable or otherwise objectionable, or whose continued use is deemed contrary to the best interests of the City. Before a written request is issued, authorized representatives of the City and EpicEdge will discuss the circumstances and attempt in good faith 6 to resolve the key personnel issue. Upon receipt of a written request from an authorized representative of the City, EpicEdge shall be required to proceed with the replacement. The replacement request will include the desired replacement date and the reason for the request. EpicEdge shall use its best efforts to effect the replacement in a manner that does not degrade service quality. This provision will not be deemed to give the City the right to require EpicEdge to terminate any person's employment. Rather, this provision is intended to give the City only the right to require that EpicEdge discontinue using an employee in the performance of services for the City. 1.13 Unauthorized Removal of Key Personnel It is critical to the overall success of the project that EpicEdge not remove or reassign, without the City's prior written approval (which approval shall not be unreasonably withheld) any of the key personnel until such time as the key personnel have completed all of their planned and assigned responsibilities in connection with performance of EpicEdge's obligations under the contract. The unauthorized removal of key personnel, except by reason of employee's separation from the firm, shall be considered as a material breach of contract and grounds for termination. 1.14 INDEPENDENT CONTRACTOR STATUS Consultant is an independent contractor, not City's employee. Consultant's employees or subcontractors are not City's employees. This Agreement does not create a partnership relationship. Neither party has authority to enter into contracts as agent for the other party. Consultant and City agree to the following rights consistent with an independent contractor relationship: 1. Consultant has the right to perform services for others during the term of this Agreement; and 2. Consultant has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed; and 3. Consultant has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement; and 4. Consultant or Consultant's employees or subcontractors shall perform the services required by this Agreement. City shall not hire, supervise, or pay any assistants to help Consultant; and 5. Neither Consultant nor Consultant's employees or subcontractors shall receive any training from City in the skills necessary to perform the services required by this Agreement; and 6. City shall not require Consultant or Consultant's employees or subcontractors to devote full time to performing the services required by this Agreement; and 7 7. Neither Consultant nor Consultant's employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. 1.15 CONFIDENTIALITY; DISPOSITION OF MATERIALS; PROPRIETARY INFORMATION Each party shall take reasonable measures to preserve the confidentiality of any proprietary or confidential information provided to it in connection with this engagement, provided that no claim may be made for any failure to protect information that occurs more than two (2) years after the termination or expiration of this Agreement. At the conclusion of the engagement, upon written request, each party shall return to the other all materials, data and documents that have been provided to the other party, except that Consultant may retain one (1) copy of City's materials for its archival purposes, subject to Consultant's confidentiality obligations hereunder. City shall retain ownership of all work product materials, including data and materials provided by it to Consultant. Original drawings shall remain the property of Consultant. City agrees that any and all ideas, concepts, or other intellectual property rights related in any way to the techniques, knowledge, templates, tools, or processes of the EpicEdge services provided under this Agreement, whether or not developed for the City, are the exclusive property of EpicEdge. EpicEdge shall have the exclusive right, title, and ownership to such property. 1.16 LIMITATION OF LIABILITY AND WARRANTY Should any of Consultant's services not conform to the requirements of this Agreement and the appended Scope of Services, then and in that event City shall give written notification to Consultant; thereafter, Consultant shall either (a) promptly re -perform such services to City's satisfaction at no additional charge, or (b) promptly refund the portion of the fees paid with respect to such services. In the event that re -performance of services or refund of applicable fees would not provide an adequate remedy to City for damages arising from the performance, nonperformance or breach of this Agreement and the appended Scope of Services, then and in that event Consultant's maximum total liability, including that of any employee, affiliate, agent or contractor, relating to its services, regardless of the cause of action, shall be limited to direct damages in an amount not to exceed the total fees payable under this Agreement. The foregoing limitation of liability shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of Consultant, its employees, affiliates, agents or 8 contractors, or from bodily injury, death of any person, or damage to any real or tangible personal property. Neither party shall be liable for any indirect, special or consequential damages. Limited Warranty. EpicEdge warrants to Client that during the term of this Agreement, the Services will be performed in a professional and workmanlike manner in accordance with applicable commercial standards. EPICEDGE MAKES NO OTHER WARRANTIES OR REPRESENTATIONS OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE SERVICES, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON - INFRINGEMENT. 1.17 INDEMNIFICATION Consultant agrees to hold harmless, defend, and indemnify City for and from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the negligence of Consultant or its employees or agents in the course of performing services. The limitation of liability set forth in Section 1.16 herein applies to Consultant's indemnity obligations pursuant to this Section 1.17, but the limitation shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of Consultant, its employees, affiliates, agents or contractors or from bodily injury, death of any person, of damage to any real or tangible personal property. Except to the extent that Consultant is obligated to indemnify City, City shall indemnify and hold Consultant, its employees, affiliates or agents harmless from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the services performed by Consultant or City's use thereof. 1.18 INSURANCE Insurance. Consultant, at Consultant's sole cost, shall have and maintain during the term of this Agreement professional liability insurance coverage in the minimum amount of One Million Dollars from a company authorized to do insurance business in Texas and otherwise acceptable to City. Subconsultant Insurance. Without limiting any of the other obligations or liabilities of Consultant, Consultant shall require each subconsultant performing work under this Agreement to maintain during the term of the Agreement, at the subconsultant's own expense, the same stipulated minimum insurance required in the immediately preceding paragraph, including the required provisions and additional policy conditions as shown below. As an alternative, Consultant may include its subconsultants as additional insureds on its own coverages as prescribed under these requirements. Consultant's certificate of insurance shall note in such event that the subconsultants are included as additional insureds. 9 Consultant shall obtain and monitor the certificates of insurance from each subconsultant in order to assure compliance with the insurance requirements. Consultant must retain the certificates of insurance for the duration of this Agreement, and shall have the responsibility of enforcing these insurance requirements among its subconsultants. City shall be entitled, upon request and without expense, to receive copies of these certificates of insurance. Insurance Policy Endorsements. Each insurance policy hereunder shall include the following conditions by endorsement to the policy: (1) Each policy shall require that thirty (30) days prior to the expiration, cancellation, non -renewal or any material change in coverage, a notice thereof shall be given to City by certified mail to: City Manager, City of Round Rock 221 East Main Street Round Rock, Texas 78664 Consultant shall also notify City, within 24 hours of receipt, of any notices of expiration, cancellation, non -renewal, or material change in coverage it receives from its insurer. (2) Companies issuing the insurance policies shall have no recourse against City for payment of any premiums or assessments for any deductibles which all are at the sole responsibility and risk of Consultant. (3) Terms "City" or "City of Round Rock" shall include all authorities, boards, commissions, departments, and officers of City and individual members, employees and agents in their official capacities, or while acting on behalf of the City of Round Rock. (4) The policy clause "Other Insurance" shall not apply to any insurance coverage currently held by City, to any future coverage, or to City's Self -Insured Retentions of whatever nature. Cost of Insurance. The cost of all insurance required herein to be secured and maintained by Consultant shall be borne solely by Consultant, with certificates of insurance evidencing such minimum coverage in force to be filed with the City. Such Certificates of Insurance are evidenced as Exhibit "B" entitled "Certificates of Insurance." 1.19 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES Compliance with Laws. Consultant, its consultants, agents, employees and subcontractors shall use best efforts to comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as amended, and with all applicable rules and regulations promulgated by local, state and national boards, bureaus and agencies. 10 Consultant shall further obtain all permits and licenses required in the performance of the services contracted for herein. Taxes. Consultant will pay all taxes, if any, required by law arising by virtue of the services performed hereunder. City is qualified for exemption pursuant to the provisions of Section 151.309 of the Texas Limited Sales, Excise, and Use Tax Act. 1.20 FINANCIAL INTEREST PROHIBITED Consultant covenants and represents that Consultant, its officers, employees, agents, consultants and subcontractors will have no financial interest, direct or indirect, in the purchase or sale of any product, materials or equipment that will be recommended or required for the Project. 1.21 ASSIGNMENT AND DELEGATION The parties each hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement. Neither party shall assign, sublet or transfer any interest in this Agreement without prior written authorization of the other party. 1.22 LOCAL, STATE AND FEDERAL TAXES Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: 1. Withhold FICA from Consultant's payments or make FICA payments on Consultant's behalf; or 2. Make state and/or federal unemployment compensation contributions on Consultant's behalf; or 3. Withhold state or federal income tax from Consultant's payments. 1.23 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: 1. When delivered personally to the recipient's address as stated in this Agreement; or 2. Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. 11 Notice to Consultant: Robert Cohan 5508 Highway 290 West 3rd Floor Austin, TX 78735 Notice to City: City Manager 221 East Main Street Round Rock, TX 78664 AND TO: City Attorney 309 East Main Street Round Rock, TX 78664 Nothing contained herein shall be construed to restrict the transmission of routine communications between representatives of City and Consultant. 1.24 APPLICABLE LAW; ENFORCEMENT AND VENUE This Agreement shall be enforceable in Round Rock, Williamson County, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas. 1.25 EXCLUSIVE AGREEMENT This document, and all appended documents, constitutes the entire Agreement between Consultant and City. This Agreement may only be amended or supplemented by mutual agreement of the parties hereto in writing. 1.26 DISPUTE RESOLUTION If a dispute or claim arises under this Agreement, the parties agree to first try to resolve the dispute or claim by appropriate internal means, including referral to each party's senior management. If the parties cannot reach a mutually satisfactory resolution, then and in that event any such dispute or claim will be sought to be resolved with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City and Consultant shall each select a mediator and the two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and Consultant hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. 12 1.27 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion or provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion or provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this section shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 1.28 MISCELLANEOUS PROVISIONS Time is of the Essence. Consultant understands and agrees that time is of the essence and that any failure of Consultant to complete the services for each phase of this Agreement within the agreed Project schedule will constitute a material breach of this Agreement. Consultant shall be fully responsible for its delays or for failures to use best efforts in accordance with the terms of this Agreement. Where damage is caused to City due to Consultant's failure to perform in these circumstances, City may withhold, to the extent of such damage, Consultant's payments hereunder without waiver of any of City's additional legal rights or remedies. City shall render decisions pertaining to Consultant's work promptly to avoid unreasonable delays in the orderly progress of Consultant's work. Force Majeure. Neither City nor Consultant shall be deemed in violation of this Agreement if it is prevented from performing any of its obligations hereunder by reasons for which it is not responsible or circumstances beyond its control. However, notice of such impediment or delay in performance must be timely given, and all reasonable efforts undertaken to mitigate its effects. 13 IN WITNESS WHEREOF, City and Consultant have executed this Agreement on the dates indicated. CITY OF ROUND ROCK, TEXAS ATTEST: By: Nyle Maxwell, Mayor Christine R. Martinez, City Secretary Date Signed: Date Signed: EPICEDGE By: Robert Cohan, Executive Vice President Date Signed: ATTACHMENTS Exhibit "A": Scope of Services Exhibit "B": Certificates of Insurance 14 EXHIBIT "A" SCOPE OF SERVICES 15 Exhibit A — Statement of Services Purpose This document establishes the scope of services to be provided by EpicEdge to the City of Round Rock, the project timeline, and the assumptions on which both are based. During the project, EpicEdge and the City shall agree upon any changes to the project scope or the deliverables specified in this Statement of Services. All changes will be handled through a project change request form, which will be included as part of the delivered project documentation. Overview of Solution The proposed scope of the upgrade project includes: • Project planning and management; • Providing PeopleSoft 8.4 Security, GL, AP, PO and AM experience during the FIT/GAP and conceptual design sessions with the City. • Performing the upgrade utilizing both on-site consultants and Lab staff from EpicEdge; • Incorporating any required City customizations; • Providing Unit Testing before delivery; • Providing knowledge transfer to the City's functional and technical Subject Matter Experts (SMEs); and, • Providing post -production support. Table 1 shows the PeopleSoft modules/functionality that EpicEdge will upgrade for the City. Table 1. Modules/Functionality to Upgrade ✓ General Ledger ✓ Asset Management ✓ PeopleSoft Tools ✓ Accounts Payables ✓ Purchasing Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 1 Timeframe for Major Upgrade Project Activities June JJuly August ept. Project Planning and Fit/Gap Lab Upgrade Lab U nit Testing Design/Traing Documents Created Integration of Customizations Adaptation of v7.X business processes to v8.X TesTes=ith EpicEdge End User Training at EpicEdge Support on-site This upgrade is intended primarily as a technical upgrade. The City does not plan to implement extensive new baseline functionality except for a new Security system based on the delivered PeopleSoft security Roles and delivered AP/PO workflow. The exception to the "no new functionality" rule is if a new feature in baseline release 8.4 eliminates an existing customization. In that situation, it is most likely that the customization would be eliminated and the new feature implemented. The scope of work includes time for EpicEdge to analyze and present recommendations to incorporate additional functional features for GL, AP, PO and AM during the first week and during testing. It does not include functional hours if this review turns into a significant re- implementation of any of the modules, security or workflow. PHASE 1 Planning and Fit Gap Phase Activities Project Planning and Organization During this phase of the project, EpicEdge will work with City personnel to establish a framework to ensure success. The following activities will be performed: 1. Complete and refine the project management materials, including the project workplan, staffing plan, and other transition plans. Clarify basic project structure, roles and responsibilities. 2. Conduct kickoff meeting to brief team members on their roles. To be successful, the project requires that City SME's perform an in-depth review of new version functionality. EpicEdge will provide the City's staff with a detailed project schedule by the end of the second week of this Planning Phase that shows when they will be required Use or disclosure of data contained on this sheet is Page 2 subject to the restriction on the title page of this proposal. to participate and at what level, so that these key resources can plan their work accordingly. 3. Meet with the City's Steering Committee and/or other management stakeholders to brief them on the project objectives and strategy; 4. Confirm all technical assumptions and determine the key technical architecture prior to reviewing functional requirements. Functional Review A functional review also takes place during Phase 1, parallel to other activities. The functional review begins immediately after the project workplan is in place. EpicEdge will craft a roadmap to clearly identify functional differences between release 7.5 and release 8.4. During the functional review, EpicEdge will lead the project team in the following activities: 1. Introduce and assess new version 8.4 features and functionality; 2. Confirm the City's custom modifications so they can be evaluated in detail against the new functionality; 3. Determine which modifications can be eliminated while still retaining needed functionality for the City of Round Rock; 4. Identify potential functionality gaps. Modification Analysis EpicEdge will lead the project team in running scenarios of business transactions on the new system. From this activity, the team documents any new "to be" processes, and makes note of any additional functionality gaps that emerge. The team then conducts another review of the identified gaps, and the City of Round Rock determines whether existing customizations are still critical to the operation of the system. Any gaps remaining after re-engineering, workarounds, or elimination of unnecessary customized features must be addressed by system modification. EpicEdge's functional analyst will analyze each gap and prepare a design document for the modification in consultation with the implementation team and the technical analyst. The design document defines the approach for changing the system to satisfy the underlying requirement, and includes an estimate for hours required to make this modification. The City of Round Rock will expedite the review of these designs. Knowledge Transfer and Change Management EpicEdge will assist the City in adapting to the cultural, procedural, and technology changes introduced by Version 8.4 by beginning knowledge transfer from day one. The Change Management Plan is a Phase 1 deliverable that includes the following information: Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 3 • List of individuals affected by change (stakeholders) • List of changes these individuals will undergo to support new processes, and any gaps they have in undertaking the PeopleSoft transformation • A plan to target how to fill gaps, through knowledge transfer, training, communications, sponsorship, etc. Use or disclosure of data contained on this sheet is Page 4 subject to the restriction on the title page of this proposal. PHASE 2 In our Lab Upgrade/Development Phase Activities During this phase, several activities are happening concurrently. In our lab in Austin, the technical staff begins designing, programming and unit testing all of the approved modifications after transmition of the client database. All compare reports between the existing database and the upgraded database are being reviewed for any differences and any modifications are being upgraded and incorporated. Lastly the required patches and fixes are being applied and the system is being Unit Tested. Delta Training for users is being developed and any new business processes from the functional review are being documented. Users are being prepared for the changes between the old and new releases. On -Site After the conclusion of the upgrade in our lab, EpicEdge resources will install the application and the upgraded database at the City of Round Rock. The functional consultants will present the new configuration and training documents for review by the City. The onsite -consultants will unit testing the application for final handoff for user acceptance testing. This step verifies the installed environments and any required customizations. EpicEdge will unit test the converted data in the release 8.4 database by running a number of key processes to confirm counts and integrity. The upgrade database is first run of data conversion routines that gives the functional team an initial set of data for prototyping and testing. The "vanilla" installation steps are documented in detail by PeopleSoft, and the installation follows an orderly sequential process through each step. EpicEdge will use a combination of PeopleSoft upgrade scripts, data management utilities, and EpicEdge-developed SQL routines (as needed) to facilitate upgrading the City environment from the release 7.52 to release 8.4 PHASE 3 Testing Phase During this phase, the business process scenarios developed in the functional review are used again for comprehensive system testing. The EpicEdge functional analyst will coordinate the testing process with the City, but the entire project team will be involved in this activity. When system testing is complete and the results verified, EpicEdge will initiate the final round of acceptance testing prior to moving over to production. The endpoint of this final round of testing is acceptance of the system by the City of Round Rock. When this has been accomplished, EpicEdge will begin the final upgrade to the Production Environment. This move is conducted in conjunction with the City of Round Rock user activities to minimize disruption. Use or disclosure of data contained on this sheet is Page 5 subject to the restriction on the title page of this proposal. Unit Testing Lead role N/A Integration Testing Support (if needed) Lead role System Testing Support (if needed) Lead role User Acceptance Test Support (if needed) Lead role Performance Tuning Lead role Support Use or disclosure of data contained on this sheet is Page 6 subject to the restriction on the title page of this proposal. PHASE 4 Transition/Deployment Phase Activities During this period, prior to deployment, EpicEdge trainers will hold sessions with the City of Round Rock end users to acquaint them with the differences in release 8.4. All initial end user training will be complete before the system is moved to production. Training Development. While the technical team is completing the upgrade, EpicEdge will outline the release 8.4 differences and customize associated training material templates. Post -Production Activities To assist the City in any issues that may arise after the cutover to the new system, EpicEdge has proposed on-site support as needed from the same consultants who worked on the implementation. This staff will be directed and managed by the City of Round Rock, and can be used for help desk support, issue investigation and resolution, and planning for additional system functionality or features. Planning/ Fit/Gap Phase 6/12/03 City of Round Rock Timeline for PeopleSoft 8.4 Upgrade Upgrade/Development Phase 6/30103 Installation/Integration of Customizations 7/28/03 Testing Phase 8/4/03 Transition/ Deployment Phase 8/25/03 Go -Live 9/1/03 Planning Phase 1 -Project Kickoff/planning 2 -Equipment Assessment and Purchase 3 -Customization Assessment 4 -Copy of PROD Sent to LAB 5 -Functional GAP Assessment 6 -Deliverable documents provided and modified (Training, Configuration etc.) 7 -Conversion Planning 8 -Compare Reports Run and evaluated Upgrade 1 -Creation of New Environment 2 -Apply needed Patches & Fixes 3 -Apply customizations 4 -Lab Unit Testing 5 -Conversion of Sample Data 6 -New equipment arrives and installation of PS 8.x at client 7 -Modify SQR's and Crystals Installation 1 -Install Hardware and Software 2 -Install New Development and Convert 3 -Test Performance 4 -Integration of Customizations 5 -Business Process Adaptation 6 -Migration of Reporting Library & SQR's Transition Phase 1 -End User Training 2 -Prepare for Production Support 3 -Go -live Conversion of Data 4 -Plan Post Upgrade Enhancements Testing Phase 1- Conversion of historical data 2- Unit Testing 3- Integration Testing 4- System Testing 5. - UAT Use or disclosure of data contained on this sheet is Page 7 subject to the restriction on the title page of this proposal. Jami Malone GUAM Functional; Lead Linda Brown AF/PO Functional; Specialist Mark Ferguson i Technical Lead Upgrade/DBA TBD Technical Analysti Customizations • City of Round Rock PeopleSoft Financials Upgrade Proposed Project Team Steering Comittee City of Round Rock City of Round Rock Project Manager Keith Velasquez EE Pro'ect/LAB Manager TBD _ _ TBD ; GUAM Functional i 1 Security i Lead i Administrator i TBD i A/PO Functional ; i 1BD DBA Specialist TBD Technical Lead Upgrade/DBMS TBD ; Technical Analyst 1 Customizations 1B0 Network ; Administrator i Use or disclosure of data contained on this sheet is Page 8 subject to the restriction on the title page of this proposal. Key Personnel Engagement Manager: Mr. Rafi Aghababian — Rafi is a senior Engagement Manager with extensive experience in clients of all sizes, including retail, manufacturing, energy, products, financial and high-tech companies. Prior to his Big -Five consulting career, Rafi was an independent management consultant at Transamerica Occidental Life, Controller Division, and a CFO of a $2.5 million food company. Rafi received his M.B.A. in Finance at Rutgers Graduate School of Management in December 1991 and my B.S. in Economics from Manhattan College in June 1989. His experience covers such areas as packaged financial software implementations, assessment and implementation of new technologies, ASP hosting solutions and process improvements for both IT and Financial Departments, reengineering of accounting procedures, strategic business planning, financial reporting, and cost accounting. Project Manager/Lab Manager: Mr. Keith Velasquez — Keith is a highly skilled PeopleSoft technical professional with seven years experience in analysis, development and support of State of Texas financials systems. Performed a full range of technical responsibilities for the ISAS statewide team at the Texas Comptroller of Public Accounts, including support of the statewide ISAS interfaces. Effective liaison between functional and technical staff, translating end user requests into new programs and reports. Significant experience in all PeopleSoft reporting tools, including Query, SQR, Crystal and nVision. Supported, developed, and participated in PeopleTools and PeopleSoft application upgrades. He is well versed at applying patches and fixes to all version of PeopleSoft. A dedicated and self -motivated team player with exceptional verbal and written communication skills. GL/AM Functional Lead: Ms. Jami Malone — Jami is an experienced PeopleSoft Public Sector and ISAS professional. Jami performed a full range of Functional and Training responsibilities for the ISAS statewide team at the Texas Comptroller of Public Accounts, including support of the statewide ISAS interfaces. Jami is a specialist in the PeopleSoft General Ledger and Asset Management modules, with experience in Purchasing and Accounts Payable. Jami also gained significant ISAS experience as a budget analyst with the Texas Workforce Commission (TWC) where she managed the budgeting of payments and purchase requests. She also participated in the development and testing of TWC's workflow deployment. In addition, she gained significant Texas government experience as a Chief Accountant at MHMR. She is a Certified PeopleSoft Financials Consultant. AP/PO Functional Lead: Linda Brown — Linda is an experienced Functional Business Analyst for PeopleSoft Financials Releases 7.0, 7.5, 8.0 and 8.4, with a specialty in the Education & Government version. Her focus has been in the PeopleSoft accounts payables, purchasing, procurement, and asset management modules. Linda has over two years of PeopleSoft implementation and upgrade experience as well as more than eight years of public sector accounting background. She has served as a team member for requirements definition, fit/gap analysis, system design and specifications, implementation, workflow analysis, user training, and production support. She combines excellent communication and leadership skills with strong analytical and process design abilities and continues to sharpen her PeopleSoft skills by engaging in classes on a continuing basis. Linda is also a PeopleSoft 8 Certified Financials Consultant. Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 9 Technical Lead: Mark Ferguson — Mark is a nine-year veteran PeopleSoft HRMS and Financials technical consultant. Mark has participated in eight PeopleSoft implementations dating back to some of the initial PeopleSoft projects. He has over sixteen years of experience working with information systems, database products and human resource software. Mark most recently has been a lead technical PeopleSoft resource for the Texas Comptroller of Public Accounts, where he supported the statewide Financials application, AP, PO, GL, AM modules. Previously, Mark solved some of the most complex reporting, customization and interface issues facing the Texas Department of Mental Health and Mental Retardation's PeopleSoft Training implementation. Mark holds a Bachelors and Masters in computer science and has worked on PeopleSoft HRMS since version 2. Staff Roles and Responsibilities A Roles and Responsibilities matrix is provided below for planning purposes. An updated resource schedule and resource leveling will be confirmed during the Project Planning phase. Role Resource Responsibilities Steering / Management Committee City Management EpicEdge Engagement Manager • Set strategic project direction and govern project • Address schedule and budget changes, both current and forecast • Create conditions that enable the project organization to function in the most efficient manner • Make decisions regarding the issues presented to it by the client Project Manager and the EpicEdge Project Manager • Review the high-level results of quality assurance reviews • Set high level project strategy Engagement Manager EpicEdge resource • Updates Project Scope, Contract Terms, Staffing Schedules, Quality Plans, and other project related materials • Create and update project cost and timeline estimates • Measure project performance • Implement project Quality Review and standard processes • Participate in post upgrade project audit tasks Project Managers City resource EpicEdge Resource • Manages and oversees Project Upgrade Plan and Budget • Manages updates to Project Scope, Terms of Reference, Staffing Schedules, Quality Plans, and other project related materials • Manages and oversees the upgrade contract • Lead the project and coordinate resources for project • Approves project performance • Oversees tracking and resolution of project issues • Conduct project status meetings • Signs off on project deliverables • Participate in post upgrade project audit tasks • Escalate issues to Executive Steering Committee Technical Lead EpicEdge Resource • Designs the new programs and interfaces (if applicable) • Unit and integration testing of modifications and correct problems • Install and configuration of software • Assist in support of PeopleSoft technical environment • Coordinate with Lab resources and Functional team members • Resolve technical issues Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 10 Role - Resource Responsibilities Functional Leads EpicEdge Resources • Providing senior "hands-on" leadership for the upgrade with independent accountability to the Project Management • Drive business process analysis and reengineering, design, configuration, construction, testing, upgrade, post upgrade and training tasks • Developing, maintaining and monitoring the project Workplan for specified f inctional areas • Define and coordinate roles and responsibilities of team members • Report project progress to Project Manager • Drive prototyping Fit analysis • Facilitate module team meetings • Assist with Design of forms and manuals • Facilitate the transfer of knowledge to client staff • Support users during Post Production • Partake in post upgrade project audit tasks • Prepare end user training materials • Conduct end user training Functional Leads EpicEdge and City Resources • Facilitating issues and problems resolution for specified functional areas and escalating issues and problems that "cross the enterprise" — integration issues. • Participate in creating project Standards and Procedures, Testing Plans and other project related materials • Work with conversion analyst to ensure data validity • Work with SMEs to determine and document required reference and prompt table values • Define application security • Develop functional procedures and documentation • Participate in integration, acceptance, and parallel test plans, participate in testing, and resolve test results Subject Matter Experts City Resources • Client business process and business rule experts • Define existing business rules and processes • Participate in 'To Be' processes and rules • Perform Fit analysis and prototyping • Deliverables/Milestones/Sign-Offs • Define Forms & Labels and procedures manual • Provide legacy system information • Perform functional configuration activities specific to client requirements • Prototype transactions • Perform acceptance and integration testing • Test converted data • Assist project team in business analysis, design, construction, data conversion, interface design and construction, testing, upgrade, and post upgrade activities Technical Lead City Resource • Construction of modifications (where applicable) • Develops new programs and interfaces (where applicable) • Unit and integration testing of modifications and correct problems • Assist in conversion activities • Assist in support of PeopleSoft technical environment • Coordinate with other technical and functional team members • Resolve technical issues Track and resolve project issues • Participate in project status meetings • Secures deliverable sign -off • Participate in post upgrade project audit tasks Technical and Functional Testers EpicEdge and City resources • Develops new programs and interfaces (if applicable) • Unit and integration testing of modifications and correct problems • Assist in conversion activities • Assist in support of PeopleSoft technical environment • Coordinate with other technical and functional team members • Resolve technical issues Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 11 Role Resource Responsibilities Trainer EpicEdge and City Resources • Define end user training objective and strategies • Create and manage training plans • Gain an understanding of business processes • Translate business processes into training exercises • Design and develop training manuals and materials • Coordinate with upgrade team • Assist with population of training database • Conduct training classes PeopleSoft System Administrator City Resource • Apply PeopleSoft Updates and Fixes • Monitor PeopleSoft environments • Provide ongoing PeopleSoft support • Migrate new objects and changes • Test fixes and updates and resolve problems • Support the application during upgrade and post upgrade • Tunes the application Network/Server Administrator City Resource • Performs network activities and remote access setups • Carry out performance evaluation and improvement steps • Institute network security • Develop operation, security and support procedures • Develop server backup/recovery processes • Create disaster recovery routines • Test disaster recovery plans PeopleSoft Database Administrator City Resource • Administers the PeopleSoft databases • Define operating procedures • Define and manage PeopleSoft DBMS environments • Install PeopleSoft database instances • Perform database administrative work • Develop backup and recovery procedures • Perform version control • Test disaster recovery plans • Monitor operations • Tune DBMS environment Security Administrator City Resource • Maps security requirements to PeopleSoft • Configure network, server, database, and application object and operator security. • Define security procedures, policy and objectives • Prototype and test security • Set up user security Project Assumptions The following assumptions apply to the scope, execution, and deliverables for this project: 1. Project management. The City of Round Rock will share project management responsibilities with EpicEdge and jointly manage the tasks according to the detailed project workplans. The City of Round Rock will assign one full time employee to function as overall project manager. EpicEdge and the City of Round Rock will work together to achieve the objectives of this project. The City of Round Rock project manager will take responsibility to: • Mobilize the support of the entire organization; • Take ownership for the initiative; Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 12 • Make key decisions regarding the overall direction of the project, including but not limited to decisions concerning system design; controls and system procedures to be implemented; project scope and timetable; • Provide guidance and ongoing support to the team; ■ Participate in regular project leadership and team meetings; • Assess and manage project risk; • Resolve escalated issues; • Assess the impact of proposed changes in scope and make final decision on change requests; and • Facilitate availability of proper resources to achieve implementation capabilities. 2. The City of Round Rock team members. City of Round Rock staff members will support the creation of Fit Gap documents and new system design, contributing approximately 50% of the total project time helping with the requirements review and system design activities. This "best estimate" of hours is based on using PeopleSoft's delivered functionality, and eliminating or reducing existing customizations where feasible. The City of Round Rock team members will work with EpicEdge to complete the following: • Participate in interviews and workshops; ■ Participate in all regularly scheduled status meetings; • Provide business and organizational knowledge to assist in the definition of business requirements, design of processes, and creation of system configuration; ■ Fulfill data requests and answer requirements gathering questions in a timely manner, in most cases no more than three working days, so as not to cause project delays • Review and validate design specifications; • Validate business process scripts; • Configuring the systems for any needed system changes; • Assist in refining testing materials provided by EpicEdge. • Execute testing; • Create and test samples of business transactions and steps to prepare realistic "day in the life" test scripts. • Test and validate data conversion, interfaces, custom reports, external documents; • Cleanse and reconcile transactional data from the source systems, including journal entries, and invoices; • Provide required database copy; • Verify the integrity of all data prior to it being loaded into production; • Report open issues to project management; • Develop data integration, data conversion and technical environment strategies; • Execute technical development tasks; • Manage change migration standards and tools; • Resolve technical issues and provide status to project management; • Acquire and Assist Design, build, test, deploy and maintain server, LAN/WAN connectivity of all internal and remote locations, backup, recovery, change migration, and other technical infrastructure capabilities. 3. Completion of tasks. The City of Round Rock will work with EpicEdge to complete all project tasks and activities. the City of Round Rock resources assigned to the project will complete project tasks within the time allocated by the detailed project schedule. Use or disclosure of data contained on this sheet is Page 13 subject to the restriction on the title page of this proposal. 4. Management involvement. Managers for the departments affected by this project will be actively involved in this project. They will be expected to participate in all significant decisions affecting their respective area, and, where appropriate, provide resources to complete specific tasks that have been assigned to their department. 5. Resource commitment. The City of Round Rock will have fulltime and part-time resources (the City of Round Rock team leads, super users, network administrators, and business users) available as required, potentially up to 30-40 hours per week throughout the project. 6. Hardware/software installation. EpicEdge with assistance from the City of Round Rock will be responsible for software installation and configuration. The City of Round Rock will be responsible for detailed hardware tasks and determining technical and hardware direction and requirements related to PeopleSoft. This includes set-up of any new hardware, connectivity to the user desktops, cabling and configuration of user workstations. 7. Help Desk. The City of Round Rock will provide a central point -of -contact responsible for all Help Desk issues during the testing and post go -live support phase of the project in order to centrally control issues. EpicEdge will utilize the City of Round Rock 's internal Help Desk. 8. Work environment. The City of Round Rock will provide a suitable work environment for the project team. 9. Data protection. Client acknowledges that Client and/or its affiliates (i) are the controller(s) of any Client, affiliate, or third party data or databases accessed and/or processed by EpicEdge in the course of performing the Services, including, but not limited to, data relating to individuals (the "Data"), and (ii) will be solely responsible to third parties for such Data, including, but not limited to, the individuals to whom the Data relate and Client and affiliate personnel. Client represents and warrants to EpicEdge that all Data processing and transfers between Client, its affiliates and EpicEdge will be conducted in full compliance with any laws or regulations applicable to the protection of data. Client further acknowledges that Client and its affiliates are solely responsible for providing EpicEdge with directions and instructions relating to any laws or regulations applicable to the protection of data, upon which directions and instructions EpicEdge will rely exclusively when accessing and processing Data in performing the Services. In addition, Client shall be solely responsible for determining the existence of, and complying with, any laws or regulations applicable to the protection of data as they may apply to EpicEdge's deliverables. 10. Process redesign. The project utilizes PeopleSoft's best practices for process redesign. In essence, much of what is currently PeopleSoft's best practices will become the base specification for the new financial systems. It is assumed that any major redesign of finance operations will occur in potential future projects. 11. Issue resolution. Timely resolution of project issues will be a critical success factor given the project timeframe. EpicEdge and the City of Round Rock will work together to identify, document and drive to resolution any potential functional, technical or other project related issues. The City of Round Rock will make final decisions regarding outstanding project issues in no more than five business days. 12. Material business changes. No City of Round Rock acquisitions, mergers or reorganizations will occur during the project other than what is discussed with the project planning team The City of Round Rock does not foresee changes in their core business, Use or disclosure of data contained on this sheet is Page 14 subject to the restriction on the title page of this proposal. significant deviation from current markets serviced, production or distribution patterns that may impact the validity or appropriateness of the project estimates. 13. Access to management and staff. The project team will have timely access to all appropriate City of Round Rock management and staff personnel (both functional and technical) on an as -needed basis. 14. Suitability and usability of system. The City of Round Rock has sufficiently evaluated the functionality of PeopleSoft and is satisfied that it meets the City of Round Rock 's key business requirements. 15. The City of Round Rock team leads/super users. Team leads/super users are experienced City of Round Rock resources that will drive this implementation process and guide the efforts of subordinate team members. In order to support the new systems after implementation, the City of Round Rock will allocate team leads/super users that will participate throughout the initiative. Team leads/super users will understand how the new systems have been designed and how the systems operate. Team leads/super users must be able to provide sufficient knowledge of business policies, processes, and practices to enable the project team to design the system rapidly and without significant interruption. This is particularly critical given the timeframe of this project. Refer to the City of Round Rock Staffing Matrix for a description of the level commit required from the City of Round Rock team leads/super users. 16. Software training requirements. The City of Round Rock project resources, including team leads and core team members, should receive adequate software training prior to June 13, 2003 for Financials. Lack of training may result in project delays. PeopleSoft will train the City of Round Rock project personnel. 17. Software training. The software vendor will deliver all PeopleSoft application training for The City of Round Rock personnel. Further, the City of Round Rock will provide baseline computer training (e.g., Windows, Excel, etc.) prior to the rollout of PeopleSoft to all employees who will utilize the system and who lack proficiency in these areas. EpicEdge is not responsible for delivery of such training. 18. Training documentation. Training documents and internal classes will be designed based primarily on standard software functionality. 19. Vendor support. EpicEdge will follow The City of Round Rock procedures for dealing with vendor related issues. EpicEdge will require access to vendor support (e.g., GCS support) in order to follow-up and manage vendor software issues. 20. Custom enhancements. Our estimate assumes no modifications to baseline PeopleSoft (i.e., page modifications or PeopleCode changes) other than the Crystal Reports and SQRs referenced in your RFO/e-mail, along with "minor" panel changes that will be reviewed during functional analysis. EpicEdge will work with The City of Round Rock to better align your business processes with the software applications before we will consider upgrading any additional customizations. 21. Software Warranty. EpicEdge does not warranty software products or their functionality. Software selection was based on The City of Round Rock 's independent evaluation of the software's ability to meet the City of Round Rock 's business requirements. EpicEdge anticipates some technical difficulties during this project, and has budgeted some technical resource time to assist The City of Round Rock with related issues. Due to the criticality of this project, EpicEdge will monitor this area closely. Use or disclosure of data contained on this sheet is Page 15 subject to the restriction on the title page of this proposal. 22. Hardware acquisition and installation. There will be no delays in the availability of hardware and software necessary to perform installation and upgrade. 23. Access to facilities. EpicEdge project personnel will have reasonable access to The City of Round Rock 's facilities during both normal business hours and outside normal business hours, as the project requires. 24. EpicEdge security/access requirements. EpicEdge project personnel will require system access as indicated below. Access requirements will be re-evaluated during the first phase of the project. • Development - full developer access • Test - full developer access, not including security • No access to production 25. Change request process. Any scope changes will need to be documented through a change order process and signed by both EpicEdge and The City of Round Rock. Additional work will not be performed in advance without authorization from The City of Round Rock. 26. PeopleSoft reports and reporting library. The City of Round Rock will update and modify all reports with assistance and training from EpicEdge. 27. Service Packs, Bundles and Patches. The upgrade includes the installation of all required and needed service packs, bundles and patches to meet both the business needs and PeopleSoft support for The City of Round Rock. 28. Production Support. EpicEdge will provide up to 40 hours of production support following the Go -live period over a two-week period. The City of Round Rock will install Gotomypc software in the beginning of the project, which will allow EpicEdge to manage the equipment remotely. The support is not designed for extensive end user training although some questions are anticipated in the support. Should The City of Round Rock require additional support, EpicEdge can and will provide additional services at the bill rate specified for Supplemental Resources below. The support will be by telephone or onsite as needed, and can be used for the following issues: a. Technical Errors b. Questions regarding the tools set for building the interfaces and customizations c. Hardware and Performance Issues d. Connectivity e. Patches and fixes 29. Project Timeline. EpicEdge will complete all contract deliverables by September 1, 2003, assuming a start date no later than June 13, 2003, and no new customizations. 30. Supplemental Resources. In the event that additional EpicEdge resources are necessary due to scope changes, project constraints or other factors, the City of Round Rock would be billed as shown below: EpicEdge Resource Hourly Rate Project Manager/Lab Manager $125 Technical Lead $110 Functional Lead $110 Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 16 Schedule of Deliverables and Payments 69 § a. 2 Payment Delieverables Percenta \ } Included In Sco ti9 69 69 69 a amaaaaaaaaaaaaaa m „ rrr ƒƒ--›- -ƒ}/››\ ƒ›- .5 000 ƒƒ›› ƒƒƒ}ƒ›- )›-- ƒ ƒ\ \ G 15T.0 ( - * coc co \ } 0 / ƒ{ ( \ E-- 0 { _ \/ /� 03 c - ;�2f_ \i 30 22];m - \\ ,/\\/ 2 f� ,/�«« f\}7E )a))/$�\ \k}\\9�\ )-k)\ a 2!// \)e\ `%/GE>2/2m@-0,- E±q!)`£{\2§±,f/o2 {§/5%c%@k3)%S/$ƒ{ ?0.0*0 tk)ƒ\t-8/§j q SE{0-2E2—EE1»?w !{§<e\±8E%«eEEw—= /feEE2/`/y3�\§)}t %!\#!«!2f{E//)\k$ --E 29:£_92=too9 t=,35=oEa9e*2mJa §\/@/f/)$$00D002J 233}2/§63023)<&3± 99 Configuration & Training Documents EXHIBIT "B" CERTIFICATES OF INSURANCE 16 -Rat°r MARSH 't' �Fsu.RA� - .3, CERTIFICATE NUMBER HOU-000494118-01 PRODUCER Marsh USA, Inc. 1221 South Mopac Expressway, Suite 350 Austin78746 Attn: Lisa Lattuca 512-306-5440 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY A ST. PAUL FIRE & MARINE INS CO INSURED EpicEdge, Inc. 5508 Hwy. 290, Ste. 300 COMPANY B HARTFORD FIRE INSURANCE CO Austin, TX 78735 COMPANY C COMPANY D COVERAGES . This certificate supersgd�1 es'�oissue4certifieptelorlhe policy period noted below. THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MMIDD/YY) POLICY EXPIRATION DATE (MM/DD/YY) LIMITS A GENERAL LIABILITY 7E09102591 03/01/03 03/01/04 GENERAL AGGREGATE $ 2,000,000 X COMMERCIAL GENERAL LIABILITY PRODUCTS - COMP/OP AGG $ 2,000,000 -,I I CLAIMS MADE IX I OCCUR PERSONAL & ADV INJURY $ 1,000,000 OWNER'S & CONTRACTORS PROT EACH OCCURRENCE $ 1,000,000 N FIRE DAMAGE (Any one fire) $ 1,000,000 MED EXP (Any one person) $ 10,000 A AUTOMOBILE LIABILITY ANY AUTO TE09102591-1 03/01/03 03/01/04 COMBINED SINGLE LIMIT $ 1,000,000 ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY (Per person) $ X X HIRED AUTOS NON -OWNED AUTOS BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY. EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY WVA9108220 - 03/01/03 03/01/04 X WC STATU- TORY LIMITS I OTH- ER EL EACH ACCIDENT $ 500,000 THE PROPRIETOR/ PARTNERS/EXECUTIVE INCL EL DISEASE -POLICY LIMIT $ 500,000 OFFICERS ARE: EXCL EL DISEASE -EACH EMPLOYEE $ 500,000 B OTHER Professional Liability/E&O 007E0217050 03/01/03 03/01/04 1,000,000 DESCRIPTION OF OPERATIONS!LOCATIONS/VEHICLESfSPECIAL ITEMS Certificate holder is included as additional insured as respects General Liability and as required by written contract. CERTIFICATE :OLDER '4 "* City of Round Rock City Manager 221 East Main Street Round Rock, TX 78664 la SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL __ail DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER AFFORDING COVERAGE, ITS AGENTS OR REPRESENTATIVES, OR THE ISSUER OF THIS CERTIFICATE ?2 MARSH USA INC. BY: Richard D. Jeter ,2 - VALID AS OF. '6/05/03 DATE: June 6, 2003 SUBJECT: City Council Meeting — June 12, 2003 ITEM: 10.C.2. Consider a resolution authorizing the Mayor to execute an agreement with Epic Edge, Inc. for technical consulting services to upgrade the City's financial computer information system. Resource: David Kautz, Assistant City Manager History: Funding: Epic Edge will provide valuable functional and technical consulting resources to the City to upgrade its existing PeopleSoft Education and Government 7.5 version to PeopleSoft 8.4, a web -based financial system. The City purchased the PeopleSoft Financial System version 6.0 in April 1998. The upgrade the system to version 7.5 in August 2000. PeopleSoft Maintenance Agreement will no longer support the current version PeopleSoft Education and Government 7.5 version after October 2003. Cost: $ 100, 760.00 Source of Funds: The Self -Finance Construction Fund Outside Resources: N/A Impact/Benefit: PeopleSoft 8.4 provides pure internet architecture. It provides powerful new functionality for secure, scalable Internet -based access and integration. This next -generation architecture leverages the latest in Internet technologies and concepts to deliver real-time secure access of the PeopleSoft Financial System for the Finance, Purchasing, and Budget Departments. Public Comment: N/A Sponsor: Finance Department RECORDED DOCUMENT FOLLOWS CITY OF ROUND ROCK AGREEMENT FOR CONSULTING SERVICES WITH EPICEDGE, INC. �(filk% THIS AGREEMENT is made and entered into on this the (7 day of the month of 2003, by and between the CITY OF ROUND ROCK, a Texas home -rule municipal om) corporation, whose offices are located at 221 East Main Street, Round Rock, Texas 78664-5299 (hereinafter referred to as the "City"), and EPICEDGE, Inc., a Texas corporation, whose offices are located at 5508 Highway 290 West, 3rd Floor, Austin, Texas 78735 (hereinafter referred to as "Consultant"). RECITALS: WHEREAS, City desires to contract for Consultant's performance of professional computer consulting services for the City's financial system upgrade, and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW, THEREFORE, WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 EFFECTIVE DATE, DURATION, AND TERM This Agreement shall be effective on the date it has been signed by every party hereto, and shall remain in full force and effect unless and until it expires by operation of the tern indicated herein, or is terminated or extended as provided herein. The term of this Agreement shall be until full and satisfactory completion of the work specified herein is achieved, but in no event later than three hundred sixty-five (365) calendar days from the effective date hereof. 1.02 GENERAL CONDITIONS The General Conditions contained herein shall apply to the Scope of Services, attached hereto as Exhibit "A" and made a part hereof of all appropriate purposes. This Agreement and such Scope of Services is entered into by and between the City of Round Rock or its subsidiaries or affiliates (collectively "City") and EpicEdge. 1.03 SCOPE OF SERVICES G: Noelle\PeopleSoft Upgrade Info,Epie Edge Contract Final 000512971-DOC/jkg For purposes of this Agreement, Consultant has issued its Scope of Services for the assignment(s) delineated therein. Such Scope of Services is appended to this Agreement and is labeled as Exhibit "A." Such Scope of Services shall be deemed to incorporate the General Conditions contained herein. As described in Section 2.0 of the City's Request for Offer (03- 009), the City anticipates that functional and technical assistance may be needed to implement additional PeopleSoft functionality once the core upgrade is completed. In that event, EpicEdge will provide, for the City's review and approval, a Phase 2 Scope of Services. Except with respect to the description of specific services and fees for the assignment(s) delineated therein, the General Conditions of this Agreement and this Agreement itself shall prevail over any conflicting terms therein. Taken together with the appended Scope of Services, the General Conditions contained in this Agreement shall evidence the entire understanding and agreement between the parties and supersede any prior proposals, correspondence or discussions. Consultant shall satisfactorily provide all services described under the attached Scope of Services. Consultant's undertakings shall be limited to performing services for City and/or advising City concerning those matters on which Consultant has been specifically engaged. Consultant shall perform its services in accordance with these General Conditions and this Agreement, in accordance with the appended Scope of Services, in accordance with due care, and in accordance with prevailing consulting industry standards for comparable services. 1.04 PAYMENT FOR SERVICES; SUPPLEMENTAL AGREEMENTS Payment for Basic Services: In consideration for the consulting services to be performed by Consultant, City agrees to pay Consultant the following sum(s) as stated herein: Upgrade Consulting Services $100,760.00 Unless subsequently changed by additional Supplemental Agreement to this Agreement, duly authorized by City Council Resolution, Consultant's total compensation hereunder shall not exceed $100,760.00. This amount represents the absolute limit of City's liability to Consultant hereunder unless same shall be changed by additional Supplemental Agreement hereto. Deductions. No deductions shall be made from Consultant's compensation on account of penalty, liquidated damages or other sums withheld from payments to Consultant. Additions. No additions shall be made to Consultant's compensation based upon Project claims, whether paid by City or denied. Supplemental Agreements. The terms of this Agreement may be modified by written Supplemental Agreement hereto, duly authorized by City Council Resolution, if the City decides to proceed with a Phase 2 Scope of Services; or if the City determines that there has been a significant change in (1) the scope, complexity, or character of the services to be performed in the initial phase; or (2) the duration of the initial phase. Any such Supplemental Agreement 2 must be executed by both parties within the period specified as the term of this Agreement. Consultant shall not perform any work or incur any additional costs prior to the execution, by both parties, of such Supplemental Agreement. Consultant shall make no claim for extra work done or materials furnished unless and until there is full execution of any Supplemental Agreement, and City shall not be responsible for actions by Consultant nor for any costs incurred by Consultant relating to additional work not directly authorized by Supplemental Agreement. Should any additional services be required, EpicEdge will provide services based on the hourly rates outlined in the Scope of Services. 1.05 TIMETABLES Unless otherwise indicated to Consultant in writing by City, or unless Consultant is unreasonably delayed in the orderly progress of its work by forces beyond Consultant's control, the following timetable structure and deliverable due dates set forth in the Scope of Services shall apply. 1.06 TERMS OF PAYMENT; REIMBURSABLE EXPENSES Acceptance. The purpose of the acceptance process is to confirm that each deliverable meets the expectations of both parties (City of Round Rock and EpicEdge). Since the project is based on an aggressive schedule, the timely sign -off of project deliverables will be critical to its success. Upon submittal by EpicEdge, the City shall promptly inspect each item identified as a key deliverable in Exhibit A, "Scope of Services", and shall evaluate such deliverable for completeness, accuracy, and clarity. The City shall provide written approval of the deliverable or a statement of deficiencies to EpicEdge within five (5) business days, or other timeframe mutually agreed upon by the project managers for EpicEdge and the City. EpicEdge shall resolve the deficiencies within an additional five (5) business days, or other timeframe mutually agreed upon by the project managers for EpicEdge and the City. Invoices. To receive payment for services, Consultant shall prepare and submit a series of invoices in a form acceptable to City. Each invoice for professional services shall identify the specific deliverables for which payment is requested, based on Exhibit A, "Scope of Services". All payments to Consultant shall be made on the basis of the invoices submitted by Consultant and approved by City. The City's acceptance of the deliverable(s) for which payment is requested, in accordance with the preceding paragraphs, shall constitute the basis for approval of invoices. Should additional backup material be requested by City, Consultant shall comply promptly with such request. In this regard, should City determine it necessary, Consultant shall make all records and books relating to this Agreement available to City for inspection and auditing purposes. Payment of Invoices. City reserves the right to correct any error that may be discovered in any invoice that may have been paid to Consultant and to adjust same to meet the 3 requirements of this Agreement. Following approval of invoices, City shall endeavor to pay Consultant promptly, but no later than the time period required under the Texas Prompt Payment Act described in Section 1.07 herein. Under no circumstances shall Consultant be entitled to receive interest on payments which are late because of a good faith dispute between Consultant and City or because of amounts which City has a right to withhold under this Agreement or state law. City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon Consultant's net income. Offsets. City may, at its option, offset any amounts due and payable under this Agreement against any debt (including taxes) lawfully due to City from Consultant, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise and regardless of whether or not the debt due to City has been reduced to judgment by a court. Reimbursable Expenses. Payment for customary reimbursable expenses hereunder shall not exceed the maximum sum of $0.00. City shall pay Consultant for reimbursable expenses on a monthly basis, as invoiced and documented, at actual cost. 1.07 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to Consultant will be made within thirty (30) days of the day on which City receives the performance, or within thirty (30) days of the day on which the performance of services was complete, or within thirty (30) days of the day on which City receives a correct invoice for the performance or services, whichever is later. Consultant may charge a late fee (fee shall not be greater than that which is permitted by Texas law) for payments not made in accordance with this Prompt Payment Policy; however, this policy does not apply to payments made by City in the event: 1. There is a bona fide dispute between City and Consultant concerning the services performed that causes the payment to be late; or 2. The terms of a federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds; or 3. There is a bona fide dispute between Consultant and a subcontractor or between a subcontractor and its supplier concerning the services performed which causes the payment to be late; or 4. The invoice is not mailed to City in strict accordance with instructions, if any, on any purchase order or this Agreement. 1.08 NON -APPROPRIATION 4 This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the services as determined by City's budget for the fiscal year in question. City may effect such termination by giving Consultant a written notice of termination at the end of its then -current fiscal year. 1.09 TERMINATION OR DEFAULT Termination. In connection with the work outlined in this Agreement, it is agreed and fully understood by Consultant that City may cancel or indefinitely suspend further work hereunder or terminate this Agreement either for cause or for the convenience of City, upon fifteen (15) business days' written notice to Consultant, with the understanding that immediately upon receipt of said notice all work and labor being performed under this Agreement shall cease. Consultant shall invoice City for all work satisfactorily completed and shall be compensated in accordance with the terms of this Agreement for all work accomplished prior to the receipt of said notice. No amount shall be due for lost or anticipated profits. Unless otherwise specified herein, all plans, surveys, and other data, designs and all work products related to the Project shall become the property of City upon termination of this Agreement, and shall be promptly delivered to City in a reasonably organized form without restriction on future use. Should City subsequently contract with a new consultant for continuation of services on the Project, Consultant shall cooperate in providing information. In addition to, the City may directly contract with staff currently assigned to this project by EpicEdge in the event such termination is the result of a termination for cause Default. For purposes of this Agreement, the term "default" shall mean (i) the failure of any Party to perform any material obligation in the time and manner provided by this Agreement, and (ii) the inability of EpicEdge to sustain normal business operations. Either party may terminate this Agreement in the event of a default by the other Party by providing a written Notice of Termination to the defaulting Party. Such Notice of Termination shall become effective no less than ten (10) calendar days after a Party receives such notice. Such Notice of Termination for cause shall include a statement by the terminating Party setting forth the grounds for determination of default under this section. Upon a Notice of Termination by a Party arising from its default under this Agreement, the defaulting Party shall have five (5) business days from the receipt of such notice to cure the default by making such payment or performing the required obligation. If the default is cured to the mutual satisfaction of the Parties, the Agreement shall remain in effect upon written acceptance of the cure by the Party who issued the Notice of Termination for cause. Should this Agreement be terminated by the City because of the inability of EpicEdge to sustain normal business operations, the City may (without limiting any of its other remedies) contract directly with any and all staff currently assigned to this project by EpicEdge. 5 City shall not be required to make any payments to Consultant when Consultant is in default under this Agreement, nor shall this paragraph constitute a waiver of any right, at law and at equity, which City may have if Consultant is in default, including the right to bring legal action for damages or to force specific performance of this Agreement. 1.10 CITY'S RESPONSIBILITIES Full information. City shall provide full info' iation regarding Project requirements. City shall have the responsibility of providing Consultant with such documentation and information as is reasonably required, if any, to enable Consultant to provide the services called for. City shall cause its employees and any third parties who are otherwise assisting, advising or representing City to cooperate on a timely basis with Consultant in the provision of its services. Consultant may rely upon written information provided by City and its employees and agents as accurate and complete. Consultant may rely upon any written directions provided by City and its employees and agents concerning provision of services. Designate representatives. City shall designate, when necessary, representatives authorized to act in its behalf. City shall examine documents submitted by Consultant and render decisions pertaining thereto promptly to avoid unreasonable delay in the orderly progress of Consultant's work. Tests and inspections. City shall furnish or pay for tests, reports and inspections as required by law or Project documents. 1.11 Personnel EpicEdge warrants that all persons assigned to the project shall be employees or subcontractors of EpicEdge, and shall be fully qualified to perform the work required herein. Personnel commitments made in EpicEdge's offer shall not be changed without the prior written approval of the City. Replacement of key personnel, if approved by the City, shall be with personnel of equal or greater ability and qualifications. Before assigning an individual to any of the key positions identified in its offer and subsequent documentation, EpicEdge shall notify the City of the proposed assignment, shall introduce the individual to the appropriate representatives of the City, and shall provide to the City a resume and any other information about the individual reasonably requested by the City. The City reserves the right to interview the individual before granting approval. 1.12 Replacement of Key Personnel at City's Request The City reserves the right to require EpicEdge to replace key personnel whom the City judges to be incompetent, careless, unsuitable or otherwise objectionable, or whose continued use is deemed contrary to the best interests of the City. Before a written request is issued, authorized representatives of the City and EpicEdge will discuss the circumstances and attempt in good faith 6 to resolve the key personnel issue. Upon receipt of a written request from an authorized representative of the City, EpicEdge shall be required to proceed with the replacement. The replacement request will include the desired replacement date and the reason for the request. EpicEdge shall use its best efforts to effect the replacement in a manner that does not degrade service quality. This provision will not be deemed to give the City the right to require EpicEdge to terminate any person's employment. Rather, this provision is intended to give the City only the right to require that EpicEdge discontinue using an employee in the performance of services for the City. 1.13 Unauthorized Removal of Key Personnel It is critical to the overall success of the project that EpicEdge not remove or reassign, without the City's prior written approval (which approval shall not be unreasonably withheld) any of the key personnel until such time as the key personnel have completed all of their planned and assigned responsibilities in connection with performance of EpicEdge's obligations under the contract. The unauthorized removal of key personnel, except by reason of employee's separation from the firm, shall be considered as a material breach of contract and grounds for termination. 1.14 INDEPENDENT CONTRACTOR STATUS Consultant is an independent contractor, not City's employee. Consultant's employees or subcontractors are not City's employees. This Agreement does not create a partnership relationship. Neither party has authority to enter into contracts as agent for the other party. Consultant and City agree to the following rights consistent with an independent contractor relationship: 1. Consultant has the right to perform services for others during the term of this Agreement; and Consultant has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed; and 3. Consultant has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement; and 4. Consultant or Consultant's employees or subcontractors shall perform the services required by this Agreement. City shall not hire, supervise, or pay any assistants to help Consultant; and 5. Neither Consultant nor Consultant's employees or subcontractors shall receive any training from City in the skills necessary to perform the services required by this Agreement; and 6. City shall not require Consultant or Consultant's employees or subcontractors to devote full time to performing the services required by this Agreement; and 7 7. Neither Consultant nor Consultant's employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. 1.15 CONFIDENTIALITY; DISPOSITION OF MATERIALS; PROPRIETARY INFORMATION Each party shall take reasonable measures to preserve the confidentiality of any proprietary or confidential information provided to it in connection with this engagement, provided that no claim may be made for any failure to protect information that occurs more than two (2) years after the termination or expiration of this Agreement. At the conclusion of the engagement, upon written request, each party shall return to the other all materials, data and documents that have been provided to the other party, except that Consultant may retain one (1) copy of City's materials for its archival purposes, subject to Consultant's confidentiality obligations hereunder. City shall retain ownership of all work product materials, including data and materials provided by it to Consultant. Original drawings shall remain the property of Consultant. City agrees that any and all ideas, concepts, or other intellectual property rights related in any way to the techniques, knowledge, templates, tools, or processes of the EpicEdge services provided under this Agreement, whether or not developed for the City, are the exclusive property of EpicEdge. EpicEdge shall have the exclusive right, title, and ownership to such property. 1.16 LIMITATION OF LIABILITY AND WARRANTY Should any of Consultant's services not conform to the requirements of this Agreement and the appended Scope of Services, then and in that event City shall give written notification to Consultant; thereafter, Consultant shall either (a) promptly re -perform such services to City's satisfaction at no additional charge, or (b) promptly refund the portion of the fees paid with respect to such services. In the event that re -performance of services or refund of applicable fees would not provide an adequate remedy to City for damages arising from the performance, nonperformance or breach of this Agreement and the appended Scope of Services, then and in that event Consultant's maximum total liability, including that of any employee, affiliate, agent or contractor, relating to its services, regardless of the cause of action, shall be limited to direct damages in an amount not to exceed the total fees payable under this Agreement. The foregoing limitation of liability shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of Consultant, its employees, affiliates, agents or 8 contractors, or from bodily injury, death of any person, or damage to any real or tangible personal property. Neither party shall be liable for any indirect, special or consequential damages. Limited Warranty. EpicEdge warrants to Client that during the term of this Agreement, the Services will be performed in a professional and workmanlike manner in accordance with applicable commercial standards. EPICEDGE MAKES NO OTHER WARRANTIES OR REPRESENTATIONS OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE SERVICES, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON - INFRINGEMENT. 1.17 INDEMNIFICATION Consultant agrees to hold harmless, defend, and indemnify City for and from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the negligence of Consultant or its employees or agents in the course of performing services. The limitation of liability set forth in Section 1.16 herein applies to Consultant's indemnity obligations pursuant to this Section 1.17, but the limitation shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of Consultant, its employees, affiliates, agents or contractors or from bodily injury, death of any person, of damage to any real or tangible personal property. Except to the extent that Consultant is obligated to indemnify City, City shall indemnify and hold Consultant, its employees, affiliates or agents harmless from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the services performed by Consultant or City's use thereof. 1.18 INSURANCE Insurance. Consultant, at Consultant's sole cost, shall have and maintain during the term of this Agreement professional liability insurance coverage in the minimum amount of One Million Dollars from a company authorized to do insurance business in Texas and otherwise acceptable to City. Subconsultant Insurance. Without limiting any of the other obligations or liabilities of Consultant, Consultant shall require each subconsultant performing work under this Agreement to maintain during the term of the Agreement, at the subconsultant's own expense, the same stipulated minimum insurance required in the immediately preceding paragraph, including the required provisions and additional policy conditions as shown below. As an alternative, Consultant may include its subconsultants as additional insureds on its own coverages as prescribed under these requirements. Consultant's certificate of insurance shall note in such event that the subconsultants are included as additional insureds. 9 Consultant shall obtain and monitor the certificates of insurance from each subconsultant in order to assure compliance with the insurance requirements. Consultant must retain the certificates of insurance for the duration of this Agreement, and shall have the responsibility of enforcing these insurance requirements among its subconsultants. City shall be entitled, upon request and without expense, to receive copies of these certificates of insurance. Insurance Policy Endorsements. Each insurance policy hereunder shall include the following conditions by endorsement to the policy: (1) Each policy shall require that thirty (30) days prior to the expiration, cancellation, non -renewal or any material change in coverage, a notice thereof shall be given to City by certified mail to: City Manager, City of Round Rock 221 East Main Street Round Rock, Texas 78664 Consultant shall also notify City, within 24 hours of receipt, of any notices of expiration, cancellation, non -renewal, or material change in coverage it receives from its insurer. (2) Companies issuing the insurance policies shall have no recourse against City for payment of any premiums or assessments for any deductibles which all are at the sole responsibility and risk of Consultant. (3) Terms "City" or "City of Round Rock" shall include all authorities, boards, commissions, departments, and officers of City and individual members, employees and agents in their official capacities, or while acting on behalf of the City of Round Rock. (4) The policy clause "Other Insurance" shall not apply to any insurance coverage currently held by City, to any future coverage, or to City's Self -Insured Retentions of whatever nature. Cost of Insurance. The cost of all insurance required herein to be secured and maintained by Consultant shall be borne solely by Consultant, with certificates of insurance evidencing such minimum coverage in force to be filed with the City. Such Certificates of Insurance are evidenced as Exhibit "B" entitled "Certificates of Insurance." 1.19 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES Compliance with Laws. Consultant, its consultants, agents, employees and subcontractors shall use best efforts to comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as amended, and with all applicable rules and regulations promulgated by local, state and national boards, bureaus and agencies. 10 Consultant shall further obtain all permits and licenses required in the performance of the services contracted for herein. Taxes. Consultant will pay all taxes, if any, required by law arising by virtue of the services performed hereunder. City is qualified for exemption pursuant to the provisions of Section 151.309 of the Texas Limited Sales, Excise, and Use Tax Act. 1.20 FINANCIAL INTEREST PROHIBITED Consultant covenants and represents that Consultant, its officers, employees, agents, consultants and subcontractors will have no financial interest, direct or indirect, in the purchase or sale of any product, materials or equipment that will be recommended or required for the Proj ect. 1.21 ASSIGNMENT AND DELEGATION The parties each hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement. Neither party shall assign, sublet or transfer any interest in this Agreement without prior written authorization of the other party. 1.22 LOCAL, STATE AND FEDERAL TAXES Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: 1. Withhold FICA from Consultant's payments or make FICA payments on Consultant's behalf; or 2. Make state and/or federal unemployment compensation contributions on Consultant's behalf; or 3. Withhold state or federal income tax from Consultant's payments. 1.23 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: 1. When delivered personally to the recipient's address as stated in this Agreement; or 2. Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. 11 Notice to Consultant: Robert Cohan 5508 Highway 290 West 3rd Floor Austin, TX 78735 Notice to City: City Manager 221 East Main Street Round Rock, TX 78664 AND TO: City Attorney 309 East Main Street Round Rock, TX 78664 Nothing contained herein shall be construed to restrict the transmission of routine communications between representatives of City and Consultant. 1.24 APPLICABLE LAW; ENFORCEMENT AND VENUE This Agreement shall be enforceable in Round Rock, Williamson County, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas. 1.25 EXCLUSIVE AGREEMENT This document, and all appended documents, constitutes the entire Agreement between Consultant and City. This Agreement may only be amended or supplemented by mutual agreement of the parties hereto in writing. 1.26 DISPUTE RESOLUTION If a dispute or claim arises under this Agreement, the parties agree to first try to resolve the dispute or claim by appropriate internal means, including referral to each party's senior management. If the parties cannot reach a mutually satisfactory resolution, then and in that event any such dispute or claim will be sought to be resolved with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City and Consultant shall each select a mediator and the two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and Consultant hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. 12 1.27 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion or provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion or provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this section shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 1.28 MISCELLANEOUS PROVISIONS Time is of the Essence. Consultant understands and agrees that time is of the essence and that any failure of Consultant to complete the services for each phase of this Agreement within the agreed Project schedule will constitute a material breach of this Agreement. Consultant shall be fully responsible for its delays or for failures to use best efforts in accordance with the terms of this Agreement. Where damage is caused to City due to Consultant's failure to perform in these circumstances, City may withhold, to the extent of such damage, Consultant's payments hereunder without waiver of any of City's additional legal rights or remedies. City shall render decisions pertaining to Consultant's work promptly to avoid unreasonable delays in the orderly progress of Consultant's work. Force Majeure. Neither City nor Consultant shall be deemed in violation of this Agreement if it is prevented from performing any of its obligations hereunder by reasons for which it is not responsible or circumstances beyond its control. However, notice of such impediment or delay in performance must be timely given, and all reasonable efforts undertaken to mitigate its effects. 13 IN WITNESS WHEREOF, City and Consultant have executed this Agreement on the dates indicated. CITY OF ROUND ROCK, TE By: a f el , Mayor Date Signed: 62--/J-03 EPICEDGE By: `' Robert Cohan, Executive Vice President Date Signed: ATTACHMENTS Exhibit "A": Scope of Services Exhibit "B": Certificates of Insurance 14 ATTEST: Christine R. Martinez, City Secretary Date Signed: LO — Ja -03 EXHIBIT "A" SCOPE OF SERVICES 15 Exhibit A — Statement of Services Purpose This document establishes the scope of services to be provided by EpicEdge to the City of Round Rock, the project timeline, and the assumptions on which both are based. During the project, EpicEdge and the City shall agree upon any changes to the project scope or the deliverables specified in this Statement of Services. All changes will be handled through a project change request form, which will be included as part of the delivered project documentation. Overview of Solution The proposed scope of the upgrade project includes: • Project planning and management; • Providing PeopleSoft 8.4 Security, GL, AP, PO and AM experience during the FIT/GAP and conceptual design sessions with the City. • Performing the upgrade utilizing both on-site consultants and Lab staff from EpicEdge; • Incorporating any required City customizations; • Providing Unit Testing before delivery; • Providing knowledge transfer to the City's functional and technical Subject Matter Experts (SMEs); and, • Providing post -production support. Table 1 shows the PeopleSoft modules/functionality that EpicEdge will upgrade for the City. Table 1. Modules/Functionality to Upgrade ✓ General Ledger ✓ Asset Management ✓ PeopleSoft Tools ✓ Accounts Payables V Purchasing Use or disclosure of data contained on this sheet is Page 1 subject to the restriction on the title page of this proposal. Timeframe for Major Upgrade Project Activities Lab Unit Testing Docum Integration of Customizations ents C reated ptation of v7.X business processes to v8.X Testing with EpicEdge End User Training at EpicEdge Support o n -site MEI This upgrade is intended primarily as a technical upgrade. The City does not plan to implement extensive new baseline functionality except for a new Security system based on the delivered PeopleSoft security Roles and delivered AP/PO workflow. The exception to the "no new functionality" rule is if a new feature in baseline release 8.4 eliminates an existing customization. In that situation, it is most likely that the customization would be eliminated and the new feature implemented. The scope of work includes time for EpicEdge to analyze and present recommendations to incorporate additional functional features for GL, AP, PO and AM during the first week and during testing. It does not include functional hours if this review turns into a significant re- implementation of any of the modules, security or workflow. PHASE 1 Planning and Fit Gap Phase Activities Project Planning and Organization During this phase of the project, EpicEdge will work with City personnel to establish a framework to ensure success. The following activities will be performed: 1. Complete and refine the project management materials, including the project workplan, staffing plan, and other transition plans. Clarify basic project structure, roles and responsibilities. 2. Conduct kickoff meeting to brief team members on their roles. To be successful, the project requires that City SME's perform an in-depth review of new version functionality. EpicEdge will provide the City's staff with a detailed project schedule by the end of the second week of this Planning Phase that shows when they will be required Use or disclosure of data contained on this sheet is Page 2 subject to the restriction on the title page of this proposal. to participate and at what level, so that these key resources can plan their work accordingly. 3. Meet with the City's Steering Committee and/or other management stakeholders to brief them on the project objectives and strategy; 4. Confirm all technical assumptions and determine the key technical architecture prior to reviewing functional requirements. Functional Review A functional review also takes place during Phase 1, parallel to other activities. The functional review begins immediately after the project workplan is in place. EpicEdge will craft a roadmap to clearly identify functional differences between release 7.5 and release 8.4. During the functional review, EpicEdge will lead the project team in the following activities: 1. Introduce and assess new version 8.4 features and functionality; 2. Confirm the City's custom modifications so they can be evaluated in detail against the new functionality; 3. Determine which modifications can be eliminated while still retaining needed functionality for the City of Round Rock; 4. Identify potential functionality gaps. Modification Analysis EpicEdge will lead the project team in running scenarios of business transactions on the new system. From this activity, the team documents any new "to be" processes, and makes note of any additional functionality gaps that emerge. The team then conducts another review of the identified gaps, and the City of Round Rock determines whether existing customizations are still critical to the operation of the system. Any gaps remaining after re-engineering, workarounds, or elimination of unnecessary customized features must be addressed by system modification. EpicEdge's functional analyst will analyze each gap and prepare a design document for the modification in consultation with the implementation team and the technical analyst. The design document defines the approach for changing the system to satisfy the underlying requirement, and includes an estimate for hours required to make this modification. The City of Round Rock will expedite the review of these designs. Knowledge Transfer and Change Management EpicEdge will assist the City in adapting to the cultural, procedural, and technology changes introduced by Version 8.4 by beginning knowledge transfer from day one. The Change Management Plan is a Phase 1 deliverable that includes the following information: Use or disclosure of data contained on this sheet is Page 3 subject to the restriction on the title page of this proposal. • List of individuals affected by change (stakeholders) • List of changes these individuals will undergo to support new processes, and any gaps they have in undertaking the PeopleSoft transformation • A plan to target how to fill gaps, through knowledge transfer, training, communications, sponsorship, etc. Use or disclosure of data contained on this sheet is Page 4 subject to the restriction on the title page of this proposal. PHASE 2 In our Lab Upgrade/Development Phase Activities During this phase, several activities are happening concurrently. In our lab in Austin, the technical staff begins designing, programming and unit testing all of the approved modifications after transmition of the client database. All compare reports between the existing database and the upgraded database are being reviewed for any differences and any modifications are being upgraded and incorporated. Lastly the required patches and fixes are being applied and the system is being Unit Tested. Delta Training for users is being developed and any new business processes from the functional review are being documented. Users are being prepared for the changes between the old and new releases. On -Site After the conclusion of the upgrade in our lab, EpicEdge resources will install the application and the upgraded database at the City of Round Rock. The functional consultants will present the new configuration and training documents for review by the City. The onsite -consultants will unit testing the application for final handoff for user acceptance testing. This step verifies the installed environments and any required customizations. EpicEdge will unit test the converted data in the release 8.4 database by running a number of key processes to confirm counts and integrity. The upgrade database is first run of data conversion routines that gives the functional team an initial set of data for prototyping and testing. The "vanilla" installation steps are documented in detail by PeopleSoft, and the installation follows an orderly sequential process through each step. EpicEdge will use a combination of PeopleSoft upgrade scripts, data management utilities, and EpicEdge-developed SQL routines (as needed) to facilitate upgrading the City environment from the release 7.52 to release 8.4 PHASE 3 Testing Phase During this phase, the business process scenarios developed in the functional review are used again for comprehensive system testing. The EpicEdge functional analyst will coordinate the testing process with the City, but the entire project team will be involved in this activity. When system testing is complete and the results verified, EpicEdge will initiate the final round of acceptance testing prior to moving over to production. The endpoint of this final round of testing is acceptance of the system by the City of Round Rock. When this has been accomplished, EpicEdge will begin the final upgrade to the Production Environment. This move is conducted in conjunction with the City of Round Rock user activities to minimize disruption. Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 5 Unit Testing Lead role N/A Integration Testing Support (if needed) Lead role System Testing Support (if needed) Lead role User Acceptance Test Support (if needed) Lead role Performance Tuning Lead role Support Use or disclosure of data contained on this sheet is Page 6 subject to the restriction on the title page of this proposal. PHASE 4 Transition/Deployment Phase Activities During this period, prior to deployment, EpicEdge trainers will hold sessions with the City of Round Rock end users to acquaint them with the differences in release 8.4. All initial end user training will be complete before the system is moved to production. Training Development. While the technical team is completing the upgrade, EpicEdge will outline the release 8.4 differences and customize associated training material templates. Post -Production Activities To assist the City in any issues that may arise after the cutover to the new system, EpicEdge has proposed on-site support as needed from the same consultants who worked on the implementation. This staff will be directed and managed by the City of Round Rock, and can be used for help desk support, issue investigation and resolution, and planning for additional system functionality or features. Planning/ Fit/Gap Phase 6/12/03 City of Round Rock Timeline for PeopleSoft 8.4 Upgrade Upgrade/Development Phase 6/30/03 Installation/Integration of Customizations 7/28/03 Testing Phase 8/4/03 Transition/ Deployment Phase 8/25/03 Go -Live 9/1/03 Planning Phase 1 -Project Kickoff/planning 2 -Equipment Assessment and Purchase 3 -Customization Assessment 4 -Copy of PROD Sent to LAB 5 -Functional GAP Assessment 6 -Deliverable documents provided and modified (Training, Configuration etc.) 7 -Conversion Planning 8 -Compare Reports Run and evaluated Upgrade 1 -Creation of New Environment 2 -Apply needed Patches & Fixes 3 -Apply customizations 4 -Lab Unit Testing 5 -Conversion of Sample Data 6 -New equipment arrives and installation of PS 8.x at client 7 -Modify SQR's and Crystals Installation 1 -Install Hardware and Software 2 -Install New Development and Convert 3 -Test Performance 4 -Integration of Customizations 5 -Business Process Adaptation 6 -Migration of Reporting Library & SQR's Transition Phase 1 -End User Training 2 -Prepare for Production Support 3 -Go -live Conversion of Data 4 -Plan Post Upgrade Enhancements Testing Phase 1- Conversion of historical data 2- Unit Testing 3- Integration Testing 4- System Testing 5. - UAT Use or disclosure of data contained on this sheet is Page 7 subject to the restriction on the title page of this proposal. Jami Malone i GL/AM Functional Lead I Linda Brown AP/PO Functional; Specialist Mark Ferguson i Technical Lead Upgrade/DBA TBD_ Technical Analyst; ; Customizations '• City of Round Rock PeopleSoft Financials Upgrade Proposed Project Team Steering Comittee City of Round Rock Keith Velasquez EE Project/LAB Manager City of Round Rock Project Manager TBD GUAM Functional Lead i TBD AJPO Functional Specialist TBD i Technical Lead Upgrade/DBMS TBD Technical Analyst Customizations TBD Security Administrator TBD DBA TBD Network Administrator Use or disclosure of data contained on this sheet is Page 8 subject to the restriction on the title page of this proposal. Key Personnel Engagement Manager: Mr. Rafi Aghababian — Rafi is a senior Engagement Manager with extensive experience in clients of all sizes, including retail, manufacturing, energy, products, financial and high-tech companies. Prior to his Big -Five consulting career, Rafi was an independent management consultant at Transamerica Occidental Life, Controller Division, and a CFO of a $2.5 million food company. Rafi received his M.B.A. in Finance at Rutgers Graduate School of Management in December 1991 and my B.S. in Economics from Manhattan College in June 1989. His experience covers such areas as packaged financial software implementations, assessment and implementation of new technologies, ASP hosting solutions and process improvements for both IT and Financial Departments, reengineering of accounting procedures, strategic business planning, financial reporting, and cost accounting. Project Manager/Lab Manager: Mr. Keith Velasquez — Keith is a highly skilled PeopleSoft technical professional with seven years experience in analysis, development and support of State of Texas financials systems. Performed a full range of technical responsibilities for the ISAS statewide team at the Texas Comptroller of Public Accounts, including support of the statewide ISAS interfaces. Effective liaison between functional and technical staff, translating end user requests into new programs and reports. Significant experience in all PeopleSoft reporting tools, including Query, SQR, Crystal and nVision. Supported, developed, and participated in PeopleTools and PeopleSoft application upgrades. He is well versed at applying patches and fixes to all version of PeopleSoft. A dedicated and self -motivated team player with exceptional verbal and written communication skills. GL/AM Functional Lead: Ms. Jami Malone — Jami is an experienced PeopleSoft Public Sector and ISAS professional. Jami performed a full range of Functional and Training responsibilities for the ISAS statewide team at the Texas Comptroller of Public Accounts, including support of the statewide ISAS interfaces. Jami is a specialist in the PeopleSoft General Ledger and Asset Management modules, with experience in Purchasing and Accounts Payable. Jami also gained significant ISAS experience as a budget analyst with the Texas Workforce Commission (TWC) where she managed the budgeting of payments and purchase requests. She also participated in the development and testing of TWC's workflow deployment. In addition, she gained significant Texas government experience as a Chief Accountant at MHMR. She is a Certified PeopleSoft Financials Consultant. AP/PO Functional Lead: Linda Brown — Linda is an experienced Functional Business Analyst for PeopleSoft Financials Releases 7.0, 7.5, 8.0 and 8.4, with a specialty in the Education & Government version. Her focus has been in the PeopleSoft accounts payables, purchasing, procurement, and asset management modules. Linda has over two years of PeopleSoft implementation and upgrade experience as well as more than eight years of public sector accounting background. She has served as a team member for requirements definition, fit/gap analysis, system design and specifications, implementation, workflow analysis, user training, and production support. She combines excellent communication and leadership skills with strong analytical and process design abilities and continues to sharpen her PeopleSoft skills by engaging in classes on a continuing basis. Linda is also a PeopleSoft 8 Certified Financials Consultant. Use or disclosure of data contained on this sheet is Page 9 subject to the restriction on the title page of this proposal. Technical Lead: Mark Ferguson — Mark is a nine-year veteran PeopleSoft HRMS and Financials technical consultant. Mark has participated in eight PeopleSoft implementations dating back to some of the initial PeopleSoft projects. He has over sixteen years of experience working with information systems, database products and human resource software. Mark most recently has been a lead technical PeopleSoft resource for the Texas Comptroller of Public Accounts, where he supported the statewide Financials application, AP, PO, GL, AM modules. Previously, Mark solved some of the most complex reporting, customization and interface issues facing the Texas Department of Mental Health and Mental Retardation's PeopleSoft Training implementation. Mark holds a Bachelors and Masters in computer science and has worked on PeopleSoft HRMS since version 2. Staff Roles and Responsibilities A Roles and Responsibilities matrix is provided below for planning purposes. An updated resource schedule and resource leveling will be confirmed during the Project Planning phase. Role Resource Responsibilities Steering / Management Committee City Management EpicEdge Engagement Manager • Set strategic project direction and govern project • Address schedule and budget changes, both current and forecast • Create conditions that enable the project organization to f unction in the most efficient manner • Make decisions regarding the issues presented to it by the client Project Manager and the EpicEdge Project Manager • Review the high-level results of quality assurance reviews • Set high level project strategy Engagement Manager EpicEdge resource • Updates Project Scope, Contract Terms, Staffing Schedules, Quality Plans, and other project related materials • Create and update project cost and timeline estimates • Measure project performance • Implement project Quality Review and standard processes • Participate in post upgrade project audit tasks Project Managers City resource EpicEdge Resource • Manages and oversees Project Upgrade Plan and Budget • Manages updates to Project Scope, Terms of Reference, Staffing Schedules, Quality Plans, and other project related materials • Manages and oversees the upgrade contract • Lead the project and coordinate resources for project • Approves project perforniance • Oversees tracking and resolution of project issues • Conduct project status meetings • Signs off on project deliverables • Participate in post upgrade project audit tasks • Escalate issues to Executive Steering Committee Technical Lead EpicEdge Resource • Designs the new programs and interfaces (if applicable) • Unit and integration testing of modifications and correct problems • Install and configuration of software • Assist in support of PeopleSoft technical environment • Coordinate with Lab resources and Functional team members • Resolve technical issues Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 10 Role Resource Responsibilities Functional Leads EpicEdge Resources • Providing senior "hands-on" " leadership for the upgrade with independent accountability to the Project Management • Drive business process analysis and reengineering, design, configuration, construction, testing, upgrade, post upgrade and training tasks • Developing, maintaining and monitoring the project Workplan for specified functional areas • Define and coordinate roles and responsibilities of team members • Report project progress to Project Manager • Drive prototyping Fit analysis • Facilitate module team meetings • Assist with Design offornis and manuals • Facilitate the transfer of knowledge to client staff • Support users during Post Production • Partake in post upgrade project audit tasks • Prepare end user training materials • Conduct end user training Functional Leads EpicEdge and City Resources • Facilitating issues and problems resolution for specified functional areas and escalating issues and problems that "cross the enterprise"— integration issues. • Participate in creating project Standards and Procedures, Testing Plans and other project related materials • Work with conversion analyst 10 ensure data validity • Work with SMEs to determine and document required reference and prompt table values • Define application security • Develop functional procedures and documentation • Participate in integration, acceptance, and parallel test plans, participate in testing, and resolve test results Subject Matter Experts I City Resources • Client business process and business rule experts • Define existing business rules and processes • Participate in 'To Be' processes and rules • Perform Fit analysis and prototyping • Deliverables/Milestones/Sign-Offs • Define Forms & Labels and procedures manual • Provide legacy system information • Perform functional configuration activities specific to client requirements • Prototype transactions • Perform acceptance and integration testing • Test converted data • Assist project team in business analysis, design, construction, data conversion, interface design and construction, testing, upgrade, and post upgrade activities Technical Lead City Resource • Construction of modifications (where applicable) • Develops new programs and interfaces (where applicable) • Unit and integration testing of modifications and correct problems • Assist in conversion activities • Assist in support of PeopleSoft technical environment • Coordinate with other technical and functional team members • Resolve technical issues Track and resolve project issues • Participate in project status meetings • Secures deliverable sign -off • Participate in post upgrade project audit tasks Technical and Functional Testers EpicEdge and City resources • Develops new programs and interfaces (if applicable) • Unit and integration testing of modifications and correct problems • Assist in conversion activities • Assist in support of PeopleSoft technical environment • Coordinate with otter technical and functional team members • Resolve technical issues Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 11 Role Resource Responsibilities Trainer EpicEdge and City Resources • Define end user training objective and strategies • Create and manage training plans • Gain an understanding of business processes • Translate business processes into training exercises • Design and develop training manuals and materials • Coordinate with upgrade team • Assist with population of training database • Conduct training classes PeopleSoft System Administrator City Resource • Apply PeopleSoft Updates and FLves • Monitor PeopleSoft environments • Provide ongoing PeopleSoft support • Migrate new objects and changes • Test fixes and updates and resolve problems • Support the application during upgrade and post upgrade • Tunes the application Network /Server Administrator City Resource • Performs network activities and remote access setups • Carry out performance evaluation and improvement steps • Institute network security • Develop operation, security and support procedures • Develop server backup/recovery processes • Create disaster recovery routines • Test disaster recovery plans PeopleSoft Database Administrator City Resource • Administers the PeopleSoft databases • Define operating procedures • Define and manage PeopleSoft DBMS environments • Install PeopleSoft database instances • Perform database administrative work • Develop backup and recovery procedures • Perform version control • Test disaster recovery plans • Monitor operations • Tune DBMS environment Security Administrator City Resource • Maps security requirements to PeopleSoft • Configure network, server, database, and application object and operator security. • Define security procedures, police and objectives • Prototype and test security • Set up user security Project Assumptions The following assumptions apply to the scope, execution, and deliverables for this project: 1. Project management. The City of Round Rock will share project management responsibilities with EpicEdge and jointly manage the tasks according to the detailed project workplans. The City of Round Rock will assign one full time employee to function as overall project manager. EpicEdge and the City of Round Rock will work together to achieve the objectives of this project. The City of Round Rock project manager will take responsibility to: • Mobilize the support of the entire organization; • Take ownership for the initiative; Use or disclosure of data contained on this sheet is Page 12 subject to the restriction on the title page of this proposal. • Make key decisions regarding the overall direction of the project, including but not limited to decisions concerning system design; controls and system procedures to be implemented; project scope and timetable; • Provide guidance and ongoing support to the team; • Participate in regular project leadership and team meetings; • Assess and manage project risk; • Resolve escalated issues; • Assess the impact of proposed changes in scope and make final decision on change requests; and • Facilitate availability of proper resources to achieve implementation capabilities. 2. The City of Round Rock team members. City of Round Rock staff members will support the creation of Fit Gap documents and new system design, contributing approximately 50% of the total project time helping with the requirements review and system design activities. This "best estimate" of hours is based on using PeopleSoft's delivered functionality, and eliminating or reducing existing customizations where feasible. The City of Round Rock team members will work with EpicEdge to complete the following: • Participate in interviews and workshops; • Participate in all regularly scheduled status meetings; • Provide business and organizational knowledge to assist in the definition of business requirements, design of processes, and creation of system configuration; • Fulfill data requests and answer requirements gathering questions in a timely manner, in most cases no more than three working days, so as not to cause project delays • Review and validate design specifications; • Validate business process scripts; • Configuring the systems for any needed system changes; • Assist in refining testing materials provided by EpicEdge. • Execute testing; • Create and test samples of business transactions and steps to prepare realistic "day in the life" test scripts. • Test and validate data conversion, interfaces, custom reports, external documents; • Cleanse and reconcile transactional data from the source systems, including journal entries, and invoices; • Provide required database copy; • Verify the integrity of all data prior to it being loaded into production; • Report open issues to project management; • Develop data integration, data conversion and technical environment strategies; • Execute technical development tasks; • Manage change migration standards and tools; • Resolve technical issues and provide status to project management; • Acquire and Assist Design, build, test, deploy and maintain server, LAN/WAN connectivity of all internal and remote locations, backup, recovery, change migration, and other technical infrastructure capabilities. 3. Completion of tasks. The City of Round Rock will work with EpicEdge to complete all project tasks and activities. the City of Round Rock resources assigned to the project will complete project tasks within the time allocated by the detailed project schedule. Use or disclosure of data contained on this sheet is Page 13 subject to the restriction on the title page of this proposal. 4. Management involvement. Managers for the departments affected by this project will be actively involved in this project. They will be expected to participate in all significant decisions affecting their respective area, and, where appropriate, provide resources to complete specific tasks that have been assigned to their department. 5. Resource commitment. The City of Round Rock will have fulltime and part-time resources (the City of Round Rock team leads, super users, network administrators, and business users) available as required, potentially up to 30-40 hours per week throughout the project. 6. Hardware/software installation. EpicEdge with assistance from the City of Round Rock will be responsible for software installation and configuration. The City of Round Rock will be responsible for detailed hardware tasks and determining technical and hardware direction and requirements related to PeopleSoft. This includes set-up of any new hardware, connectivity to the user desktops, cabling and configuration of user workstations. 7. Help Desk. The City of Round Rock will provide a central point -of -contact responsible for all Help Desk issues during the testing and post go -live support phase of the project in order to centrally control issues. EpicEdge will utilize the City of Round Rock 's internal Help Desk. 8. Work environment. The City of Round Rock will provide a suitable work environment for the project team. 9. Data protection. Client acknowledges that Client and/or its affiliates (i) are the controller(s) of any Client, affiliate, or third party data or databases accessed and/or processed by EpicEdge in the course of performing the Services, including, but not limited to, data relating to individuals (the "Data"), and (ii) will be solely responsible to third parties for such Data, including, but not limited to, the individuals to whom the Data relate and Client and affiliate personnel. Client represents and warrants to EpicEdge that all Data processing and transfers between Client, its affiliates and EpicEdge will be conducted in full compliance with any laws or regulations applicable to the protection of data. Client further acknowledges that Client and its affiliates are solely responsible for providing EpicEdge with directions and instructions relating to any laws or regulations applicable to the protection of data, upon which directions and instructions EpicEdge will rely exclusively when accessing and processing Data in performing the Services. In addition, Client shall be solely responsible for determining the existence of, and complying with, any laws or regulations applicable to the protection of data as they may apply to EpicEdge's deliverables. 10. Process redesign. The project utilizes PeopleSoft's best practices for process redesign. In essence, much of what is currently PeopleSoft's best practices will become the base specification for the new financial systems. It is assumed that any major redesign of finance operations will occur in potential future projects. 11. Issue resolution. Timely resolution of project issues will be a critical success factor given the project timeframe. EpicEdge and the City of Round Rock will work together to identify, document and drive to resolution any potential functional, technical or other project related issues. The City of Round Rock will make final decisions regarding outstanding project issues in no more than five business days. 12. Material business changes. No City of Round Rock acquisitions, mergers or reorganizations will occur during the project other than what is discussed with the project planning team The City of Round Rock does not foresee changes in their core business, Use or disclosure of data contained on this sheet is Page 14 subject to the restriction on the title page of this proposal. significant deviation from current markets serviced, production or distribution patterns that may impact the validity or appropriateness of the project estimates. 13. Access to management and staff. The project team will have timely access to all appropriate City of Round Rock management and staff personnel (both functional and technical) on an as -needed basis. 14. Suitability and usability of system. The City of Round Rock has sufficiently evaluated the functionality of PeopleSoft and is satisfied that it meets the City of Round Rock 's key business requirements. 15. The City of Round Rock team leads/super users. Team leads/super users are experienced City of Round Rock resources that will drive this implementation process and guide the efforts of subordinate team members. In order to support the new systems after implementation, the City of Round Rock will allocate team leads/super users that will participate throughout the initiative. Team leads/super users will understand how the new systems have been designed and how the systems operate. Team leads/super users must be able to provide sufficient knowledge of business policies, processes, and practices to enable the project team to design the system rapidly and without significant interruption. This is particularly critical given the timeframe of this project. Refer to the City of Round Rock Staffing Matrix for a description of the level commit required from the City of Round Rock team leads/super users. 16. Software training requirements. The City of Round Rock project resources, including team leads and core team members, should receive adequate software training prior to June 13, 2003 for Financials. Lack of training may result in project delays. PeopleSoft will train the City of Round Rock project personnel. 17. Software training. The software vendor will deliver all PeopleSoft application training for The City of Round Rock personnel. Further, the City of Round Rock will provide baseline computer training (e.g., Windows, Excel, etc.) prior to the rollout of PeopleSoft to all employees who will utilize the system and who lack proficiency in these areas. EpicEdge is not responsible for delivery of such training. 18. Training documentation. Training documents and internal classes will be designed based primarily on standard software functionality. 19. Vendor support. EpicEdge will follow The City of Round Rock procedures for dealing with vendor related issues. EpicEdge will require access to vendor support (e.g., GCS support) in order to follow-up and manage vendor software issues. 20. Custom enhancements. Our estimate assumes no modifications to baseline PeopleSoft (i.e., page modifications or PeopleCode changes) other than the Crystal Reports and SQRs referenced in your RFO/e-mail, along with "minor" panel changes that will be reviewed during functional analysis. EpicEdge will work with The City of Round Rock to better align your business processes with the software applications before we will consider upgrading any additional customizations. 21. Software Warranty. EpicEdge does not warranty software products or their functionality. Software selection was based on The City of Round Rock 's independent evaluation of the software's ability to meet the City of Round Rock 's business requirements. EpicEdge anticipates some technical difficulties during this project, and has budgeted some technical resource time to assist The City of Round Rock with related issues. Due to the criticality of this project, EpicEdge will monitor this area closely. Use or disclosure of data contained on this sheet is Page 15 subject to the restriction on the title page of this proposal. 22. Hardware acquisition and installation. There will be no delays in the availability of hardware and software necessary to perform installation and upgrade. 23. Access to facilities. EpicEdge project personnel will have reasonable access to The City of Round Rock 's facilities during both normal business hours and outside normal business hours, as the project requires. 24. EpicEdge security/access requirements. EpicEdge project personnel will require system access as indicated below. Access requirements will be re-evaluated during the first phase of the project. • Development - full developer access • Test - full developer access, not including security • No access to production 25. Change request process. Any scope changes will need to be documented through a change order process and signed by both EpicEdge and The City of Round Rock. Additional work will not be performed in advance without authorization from The City of Round Rock. 26. PeopleSoft reports and reporting library. The City of Round Rock will update and modify all reports with assistance and training from EpicEdge. 27. Service Packs, Bundles and Patches. The upgrade includes the installation of all required and needed service packs, bundles and patches to meet both the business needs and PeopleSoft support for The City of Round Rock. 28. Production Support. EpicEdge will provide up to 40 hours of production support following the Go -live period over a two-week period. The City of Round Rock will install Gotomypc software in the beginning of the project, which will allow EpicEdge to manage the equipment remotely. The support is not designed for extensive end user training although some questions are anticipated in the support. Should The City of Round Rock require additional support, EpicEdge can and will provide additional services at the bill rate specified for Supplemental Resources below. The support will be by telephone or onsite as needed, and can be used for the following issues: a. Technical Errors b. Questions regarding the tools set for building the interfaces and customizations c. Hardware and Performance Issues d. Connectivity e. Patches and fixes 29. Project Timeline. EpicEdge will complete all contract deliverables by September 1, 2003, assuming a start date no later than June 13, 2003, and no new customizations. 30. Supplemental Resources. In the event that additional EpicEdge resources are necessary due to scope changes, project constraints or other factors, the City of Round Rock would be billed as shown below: EpicEdge Resource Hourly Rate Project Manager/Lab Manager $125 Technical Lead $110 Functional Lead $110 Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. Page 16 Schedule of Deliverables and Payments a1 u •p N co V C Co O O O O al 4 m Lo 0) in N o ▪ N o NI NIe) e3 e3 e3 f» Payment Delieverables Percenta 0 0 0 0 0 N o 0 0 NI co co } } } } } Included In Sco N N N N N N N N N N N N N N N N N M 7 V V) IC) N N N U) N N N N N N N V1 N U) N 0) N N N N co N U) co co N N N N N N N N N N N N N N N O O a) N 0 a) 0) 0 0) 0 a) a) O O a) (1) a) a) a) 0 N 0 N a) a) 0 a) 0 (1) O 0 a) O 0) a) O a) 000) ✓ rrrrrrrrrrrrrrrr rrrrrrrrrrrrrrrrr r rr rrr N C CO • () E 2 4 a7 7 @ C LL N @ N C a O n O E n C p) o E a c 3 E L p Ua) ° >N a) NU 0 >, E -E -E. C°,> I U -o ycm E c _ iii N O a fNa • N a. aC- .5) wN N V)FU C ) E cm 4pa@p7 -, C -camo°Op@N u E o � VN omaN H -o c a a=E_ E_Na_o U yO N° -a c . o. E N o d U@ a (6, Nc@p a_d1C(@ c0 E a Eama o ga a) C m N C O p Y m N N p@ .2 .g H C2 ON iONN'0 N°C Na NaO O-.>, O 92 20 OmENCNNNi-, Q OoN-ON Cc,acOa ` c a 5 N s a 2- d 7 E n .E Ti p p) o E -o <EoZo@aQ @ >. o) °' m .2 mE a m o) a q ° >)o @8_o'NN =oao @om ) c c v5 q o au 0 >Y° Q O � cO@. L 2.o No UNNN>, O N . N .0 0 9 = 4 ,0UZF-IF`20 Y0EZ(.H00000 <00 0 c 0 o Eo 0N-c° Q o U C Configuration & Training Documents 0) a) E d .g E 2 o U )- c y N O U 0 C cra oa Up - N U c w W Use or disclosure of data contained on this sheet is subject t EXHIBIT "B" CERTIFICATES OF INSURANCE 16 -• . MARSH _+ ��l,w���y/��'�ma7�� PRODUCER Marsh USA, Inc. 1221 South Mopac Expressway, Suite 350 Austin78746 Attn: Lisa Lattuca 512-306-5440 CERTIFICATE NUMBER >a7 HOU-000494118-01 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY A ST. PAUL FIRE & MARINE INS CO INSURED EpicEdge, Inc. 5508 Hwy. 290, Ste. 300 Austin, TX 78735 COMPANY B HARTFORD FIRE INSURANCE CO COMPANY C COMPANY D COVERAGES COTYPE LTR THIS NOTWITHSTANDING PERTAIN, LIMITS This certificate super odes and replaces ally previously issued, certificate for the policy period noted below. , IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN I5 SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DD/YY) LIMITS A GENERAL X LIABILITY COMMERCIAL GENERAL LIABILITY ICLAIMSMADE IX IOCCUR TE09102591 03/01/03 03/01/04 GENERAL AGGREGATE I $ 2,000,000 PRODUCTS - COMP/OP AGG $ 2,000,000 I PERSONAL & ADV INJURY $ 1,000,000 H OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE $ 1 ,000,000 FIRE DAMAGE (Any one fire) $ 1,000,000 MED EXP (Any one person) $ 10,000 A AUTOMOBILE X X LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS TE09102591-1 03/01/03 03/01/04 COMBINED SINGLE LIMIT $ 1,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ GARAGE LIABILITY HANYAUTO AUTO ONLY - EA ACCIDENT OTHER THAN AUTO ONLY., EACH ACCIDENT $ 1 AGGREGATE $ EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM EACH OCCURRENCE $ AGGREGATE $ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY THE PROPRIETOR/ INCL PARTNERS/EXECUTIVE OFFICERS ARE. EXCL WVA9108220 03/01/03 03/01/04 X 1 ORS L MITS I OTH- ER EL EACH ACCIDENT $ 500,000 EL DISEASE -POLICY LIMIT $ 500,000 EL DISEASE -EACH EMPLOYEE $ 500,000 g OTHER Professional Liability/E&O 0OTE0217050 03/01/03 03/01/04 1,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS Certificate holder is included as additional insured as respects General Liability and as required by written contract. ERTIF.ICATE'HOLDER � xR�la City of Round Rock City Manager 221 East Main Street Round Rock, TX 78664 f0� SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL __311 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN. BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER AFFORDING COVERAGE, ITS AGENTS OR REPRESENTATIVES, OR THE ISSUER OF THIS CERTIFICATE. MARSH USA INC. BY: Richard D. Jeter VALID AS OF 06/05/03