CONTRACT 5854 License AgreementCity of El Segundo, CA
SaaS Licensing Agreement
Attention: City of E-1 Segundo, CA
Prepared by: Christian Dickson, Director
October 10, 2019
Actuarial Services and Technology
Licensoig Agreement
Page 1
Agreement No. 5854
. A
Govinvest
1"iqhl-y-fi*.Cialrww�
City of El Segundo, CA
Summary of Services and'Iniplernent4ktion
Customer:
City of Bl Segundo, CA
350,Main St,
El Segundo, CA 90245
Agreement No. 5854
Services.
Service Capacity: Use of the Standard Pension Module of the Total Liability Calctflat6r (the"Service(sy
Initimil Term, One year from the Effective Date,
Pension Module: $7,500 annual licensing fee.
SERV ICE AGREEMENT
This SaaS Set -vices Agreement ("Agreement") is entered into on this t day of x.01 (the
"Effective Date") between GovInvest, Inc. ("Company"), and the Customer listed above ("Customer"),
This Agreement includes and incorporates the above Summary of Services and Implementation, as well
as the attached Terms and Conditions and contains, among other things, warranty disclaimers, liability
limilatiuns and use limitations. There shall be no force or effect to any different or additional terms or any
purchase order, confirmation or similar form, even if signed by the parties'before,or after the date hereof,
GovInvest Inc. City of El Segundo, CA
BY:
By:
Name. Name:
Title: Title:
Date: Date:
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TERMS AND CONDITIONS ",if - 2 se•ndo
1... SAAS SERVICES AND SUPPORT
1,1 Subject to the terms of this Agreement, Company will use commercially reasonable efforts to
provide Customer the Services in accordance with the Service Level Terms attached hereto as
Exhibit A, As part of the registration process, Customer will identify an administrative user name
and password for Customea's account. Copipany reserves the right to refuse registration or cancel
passwords it deerns inappropriate.
1.2. Subject to the teams hereof, Company will provide Customer with reasonable technical support
services in accordance with the terms set forth in Exhibit B.
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Licensing Agreernept
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Govk
Agreement No. 5854
City of El Segundo, CA
2. RESTRICTIONS AND RP.SPONSIBILITIES
2.1 Customer will not, directly or indirectly; reverse engineer, decompile, disassemble or otherwise
attempt to discover the source code, object code or underlying structure, ideas, know-how or
algorithms relevant to the Services or any software. documentation or data related to or used to
provide the Services ("Software*'); modify, translate, or create derivative works based on the
Services or any Software (except to the extent expressly perm ' itted in writing by Company or
authorized within the Services); use the Services or any Software for timesharing or service
bureau Purposes or otherwise for the benefit of a third party; or remove any proprietary notices or
labels.
2.2 Further, Customer shall not export or re-export, either directly or indirectly, the Software or any
copies thereof in such manner as to violate the export laws and regulations of the United States or
any other applicable jurisdiction in effect from time to time (including, without limitation, when
such export or re-export requires an export license or other governmental approval without first
obtaining such license or approval). Without limiting the foregoing, Custorner shall not permit
any third parties to access or use the Services in violation of any United States export embargo,
prohibition, or restriction.
2.3 Custorner hereby agrees to indeninilyand hold harmless Cornpany against any damages, losses,
liabilities, settlements and expenses (including without limitation costs and attorney's fees) in
connection with any claim or action that arises from Customer's failure to comply with the terms
of this Agreement or otherwise from Customer's use of Services. Although Company has no
obligation to monitor Customer's use of the Services, Company may do so. Company reserves the
right, in its sole discretion, to prohibit or suspend Customer's use of the Services at any time
M -
Company believes such use to be in violation of this Agreement or otherwise harmful to the
Service.
2.4 Customer shall be responsible for obtaining and maintaining any equipment and ancillary services
needed to connect to, access or otherwise use the Services, including, Without limitation,
moderns, hardware, servers, software; operating systems, networking, web servers and the like
(collectively, '*Equipment"). Customer shall also be responsible for maintaining the security of
the Equipment, Customer account, passwords (including but not limited to administrative and
user passwords) and files, and for all uses of Customer account or the Equipment with or without
Customer's knowledge or consent.
1 CONFIDENTIALITY: PROPRIETARY RIGHTS
3,1 One party (tile "Receiving Party") understands that the other party (the "Disclosing Party") has
disclosed or may disclose business, technical or financial information relating to the Disclosing
Party's business (hereinafter referred to as "Proprietary Information" of the Disclosing Party),
Proprietary Information of Company includes non-public information regarding features,
functionality and performance of the Service. Propriet . ary Information of Customer includes non-
public data ("Customer Data") provided by Customer to Company to enable the provision of the
Services. The Receiving, Party agrees: (i) to take reasonable precautions to protect such
Proprietary Information, and (ii) not to use (except in performance of the Services or as otherwise
permitted herein) or divulge to any third party any such Proprietary Information, The Disclosing
Parry agrees that the foregoing shall not apply with respect to any information after five (5) years
following the disclosure thereof or any information that the Receiving Party can docurnem (a) is
or becomes generally available to the public, without any action by, or involvement of, the
Receiving Party or (b) was in its possession or known by it prior to receipt .from the Disclosing
Party, or (c) was rightfully disclosed to it without restriction by a third party, or (d) was:
independently developed without use of any Proprietary Information of the Disclosing Party or
(e) is required to be disclosed by law. The Receiving Party acknowledges that in the event of a
breach of Section 3.1 by the Receiving Party, substantial injury could result to the Disclosing
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Agreement No. 5854
City of El Segundo, CA
Parry and money damages will not be a sufficient remedy for such breach. Therefore, in the event
that the Receiving Party engages in, or threatens to engage in, any act which violates Section 3. 1,
the Disclosing Party will be entitled; in addition to all other remedies which may be available to it
under law, to seek injunctive relief (hicluding, without limitation, temporary restraining orders, or
ptehininary or perniancrit injunctions) and specific enforcement of the terms of Section 3.1. The
Disclosing Party will not be required to post a bond or other security in connection with the
granting of any such relief,
3.2 Company shall own and retain all rights, title and intorest,in and to: (i) the Services and Software,
together with all improvements, enhancements, modifications, changes, translations, compilation,
and derivative works thereto, (ii) any software, applications, inventions or other technology
developed in connection with Implementation Services or support, (iii) any analytics generated
through Customer's use of the Services, including but not limited to, any data, materials,
information, and reports ("Analyties") and (iv) all intellectual property rights related to any of the
foregoing, Company hereby grants Customer a non-exclusive, non -transferable and non-
sublicensable license to access and use the Analytics.
3.3 Notwithstanding anything to the contrary, Company shall have the right to collect and analyze
data and other information relating to the provision, use and performance of various aspects of the
Set -vices and related systems and technologies (including, without limitation, information
concerning Customer Data and data derived the:,-efrom), and Company will be free (during and
after the term hereof) to: (i) use such information and data to improve and enhance the Services
and for other development, diagnostic and corrective purposes in connection with the Services
and other Company offerings, (ii) disclose such data solely in aggregate or other de -identified
form in connection with its business, and (iii) disclose, share, license, or resell Analytics to third
parties for consideration. No rights or licenses are granted except as expressly set forth herein.
4, PAYMENT OF FEES
4.1 Customer will pay Company the then applicable fees described in the Summary of Services and
Implementation in accordance with the terms therein (the "Fees"). If Customer's u - se of the
Services exceeds the Service Capacity set forth in the Summary of Services and Implementation
or otherwise requires the payment of additional fees (per
er the terms of this Agreement), Customer
shall be billed for such usage and Customer agrees to pay the additional fees in the manner
provided herein. Company reserves the right to change the Fees or applicable charges and to
institute new charges and Fees at the end of the Initial Terni or then current RenewalTerm, upon
thirty (30) days prior notice to Customer (which may be sent by email), If Customer believes that
Company has billed Customer incorrectly, Customer must -contact Company no later than 60 days
after the closing date on the first billing statement in which the error or problem appeared, in
order to receive all adjustment or credit. Inquiries should be directed to Company's customer
support department.
4.2 Company may choose to bill through an invoice, in which case, full payment for invoices issued
in any given month must be received by Company thirty (30) days after the mailing date of the
invoice. Unpaid amounts are subject to a finance charge of 5% per month oil any outstanding,
balance, or the maximum permitted by law, whichever is lower, plus all expenses of collection
and may result in immediate termination of Service. Customer shall be responsible for all taxes
associated with Services other than U.S. taxes based on Company's net income -.-
4.3 Services may be provided outside tile scope encompassed within tile "Summary of Services and
Implementation". Said services may be subject to additional fees, which arc set at $600 hour for
executive -level work, $425/hour for FSA -level work, $300/bOUr for ASA -level work, $200/hour
for analyst work, and reasonable travel expenses. Said services that are subject to additional fees
will not be performed without explicit advance consent from Customer.
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Licensing Agreement
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Govinvest
Agreement No. 5854
City of El Segundo, CA
4.4 Company may incur business license fees that are mandated by Customer. Customer agrees to
reimburse Company for said fees.
4.5 Company may incur costs for adding Customer as additional insured to Company's existing
insurance policies in order to comply with Customer's insurance requirements. Customer agrees to
reimburse Company for said costs.
4.6 Company may incur costs for providing a waiver of subrogation in relation to Company's existing
insurance policies in order to comply with Customer's insurance requirements. Customer agrees to
reimburse Company for said costs.
5. TERM AND TERMINATION
5.1 Subject to earlier termination as provided below, the Initial Term of this Agreement shall be for a
period specified in the Summary of Services and Implementation (the "Initial Term"). Upon the
expiration of the Initial Term, this agreement shall automatically renew for -additional periods of
the same duration as the Initial Term (each a "Renewal Term"). The Initial Term and the Renewal
Term are collectively`referred to herein as the "Term."
5.2 In addition to any other remedies it may have, either party may terminate this Agreement upon
thirty (30) days written notice (or without notice in the case of nonpayment), if the other party
materially breaches any of the terms or conditions of this Agreement. Customer will pay in full
for the Services up to and including the last day on which the Services are provided. All sections
of this Agreement which by their nature should survive termination will survive termination,
including, without limitation, accrued rights to payment, confidentiality obligations, warranty
disclaimers, and limitations of liability.
b. WARRANTY AND DISCLAIMER
Company shall use reasonable efforts consistent with prevailing industry standards to maintain
the Services in a manner which minimizes errors and interruptions in the Services and shall
perform the Implementation Services in a professional and workmanlike manner as expressed in
Exhibit C. Services may be temporarily unavailable for scheduled maintenance or for
unscheduled emergency maintenance, either by Company or by third -party providers, or because
of other causes beyond Company's reasonable control, but Company shall use reasonable efforts
to provide advance ricitice in writing or by e-mail of any scheduled service disruption. However,
Company does not warrant that the Services will be uninterrupted or error free; nor does it make
any warranty as to the results that may be obtained from use of the Services. EXCEPT AS
EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES, THE ANALYTICS, AND
IMPLEMENTATION SERVICES ARE PROVIDED "AS IS" AND COMPANY DISCLAIMS
ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
IMPLIED WARRAN'T'IES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE AND NON -INFRINGEMENT.
INDEMNITY
Company shall hold Customer harmless from liability to third parties resulting from infringement
by the Service of any United States patent or any copyright or misappropriation of' any trade
secret, provided Company is promptly notified -of any and all. threats, claims and proceedings
related -thereto and given reasonable assistance and the opportunity to assume sole control over
defense and settlement; Company will not be responsible for any settlement it does not approve in
writing. The foregoing obligations do not apply with respect to portions or components of the
Service (i) not supplied by Company,: (ii) made in whole or in part in accordance with Customer
specifications, (iii) that are modified after delivery by Company, (iv) combined with other
products, processes or materials where the alleged infringement relates to such combination; (v)
where Customer continues allegedly infringing activity after being notified thereof or, after being
Actuarial Services and Technology
Licensing Agreement Govi nves-t
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Agreement No. 5854
City of El Segundo, CA
C,
informed of modifications that would have avoided the alleged infringement, or, (vi) where
Customer's use of the Service is not strictly in accordance with this Agreement. If, due to a claim
of infringement, the Services are held by a court of competent jurisdiction to be or are believed by
Company to be infringing, Company may, at its option and expense (a) replace or modify the
Service to be non -infringing provided that such modification or replacement contains
substantially similar features and functionality, (b) obtain,for Customer a license to continue
using the Service, or (c) if neither of the foregoing is commercially practicable, terminate this
Agreement and Customer's rights hereunder and provide Customer a refund of any prepaid,
unused fees for the Service.
8. LIMITATION OF LIABILITY
NOTWITHSTANDING ANYTHING TO THE CONTRARY, EXCEPT FOR BODILY INJURY
OF A PERSON, COMPANY AND ITS SUPPLIERS (INCLUDING BUT NOT LIMITED TO
ALL EQUIPMENT AND TECHNOLOGY SUPPLIERS), OFFICERS, AFFILIATES.
REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE
RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS
AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY
CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY: (A) FOR ERROR
OR INTERRUPTION OF USE OR FOR LOSS OR INACCURACY OR CORRUPTION OF
DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR
TECHNOLOGY OR, LOSS OF BUSINESS; (B) FOR ANY INDIRECT, EXEMPLARY,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (C) FOR ANY MATTER
BEYOND COMPANY'S REASONABLE CONTROL; OR (D) FOR ANY AMOUNTS THAT,
TOGETHER WITH AMOUNTS ASSOCIATED WITKALL OTHER CLAIMS, EXCEED THE
FEES PAID BY CUSTOMER TO COMPANY FOR THE SERVICES UNDER THIS
AGREEMENT [N,rHF- 12 MONTHS PRIOR TO THE ACT THAT GAVE RISE TO THE
LIABILITY, IN EACH CASE, WHETHLR OR NOT COMPANY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES.
MISCELLANEOUS
If any provision of this Agreement is found to be unenforceable or invalid, that provision will be
limited or eliminated to the minimum extent necessary so that this Agreement will otherwise
remain in full force and effect and enforceable. This Agreement is not assignable, transferable or
sublicensable by Customer except with Company's prior written consent. Company may not
transfer or assign any of its rights and obligations under this Agreement without Customer's prior
written consent. This Agreement is the complete and exclusive statement of the mutual
understanding of the parties and supersedes and cancels all previous written and oral agreements,
communications and other understandings relating to the subject matter of this Agreement, and all
waivers and modifications in this Agreement must be in a writing signed by both parties, except
as otherwise provided herein. No agency, partnership, joint venture, or employment is created as
a result of this Agreement and Customer does not have any authority of any kind to bind
Company in any respect whatsoever. In any action or proceeding to enforce rights under this
Agreement, the prevailing party will be entitled to recover cost's and attorneys' fees. All notices
under this Agreement will be in writing and will be deemed to have been duly given when
received, if personally delivered; when receipt is electronically confirmed, if transmitted by
facsimile or e-mail; the day after it is sent, if sent for next day delivery by recognized overnight
delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested.
This Agreement shall 'be governed. by the laws of the State of California without regard to its
conflict of laws provisions. The parties shall work together in good faith to issue at least one
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Licensing Agreemeni
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Agreement No. 5854
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mutually agreed upon press release withui 90 days, of the JEffective. Date, and Customer otherwise
agrees to reasonably cooperate with Company to serve as a reference account upon request.
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City of Ef Segundo, CA
EXHIBIT A
Service Level Ternis
Agreement No. 5854
The Services shall be available 99% of the time, measured monthly,, excluding holidays and weekends
and scheduled maintenance. If Customer requests maintenance during these hours, any uptime or
downtime calculation will exclude periods affected by such maintenance. Further, anyAowntime resulting
from outages of third party connections or utilities or other reasons beyond Company's control will also
be excluded from any such calculation. C4stomer's sole and exclusive remedy, and Company's entire
liability, in connection with Service availability shall lie that for each period of downtime lasting longer
than 12 hours, Company will credit Customer 1% of Service Fees for each period of 30 or more
consecutive minutes of downtime; provided that no more than one such credit will accrue per day.
Downtime shall begin to accrue as soon as Customer (with notice to Company) recognizes that downtime
is taking place, and continues -until the availability of the Services --is restored. In order to receive
downtime credit, Customer must notify Company in writing within 12 hours from the time of downtime,
and failure to provide such notice will forfeit the right to receive downtime credit. Such credits may not
be redeemed for cash and shall not be cumulative beyond a total of credits for one (1) week of Service
Fees in any one (1) calendar month in any event. Company will only apply a credit to the month in which
the incident occurred. Company's blocking of data communications or other Service in accordance with
its policies shall not be deemed to be a failure -of Company to provide adequate service levels under this
Agreement.
A �•eement
Licensin .. .., .,. i,
Actuarial Services and Technology
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City of El Segundo, CA
EXHIBIT B
Support Terms
Agreement No. 5854
Company will provide Technical Su'pport.to Customer via both telephone and electronic mail on
weekdays during the hours of 9:00 a.m. through 5:00 p.m, Pacific Standard Time, with the exclusion of
Federal Holidays ("Support Hours").
Customer may initiate a help desk ticket during Support Hours by calling 310-371-7106 or any time by
emailing, sLipporl@govinvest.com.
Company will use commercially reasonable efforts to respond to all help desk tickets within one (1)
business day.
Actuarial Services and Technology
Licensing Agreement 4Ak Govi nvest
Wt-9histoyour finanool(utwo
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City of El Segundo, CA
EXHIBIT C
Disclaimer ofSoftwareAnalysis
Agreement No. 5854
Company will use census data, plan provisions, and actuarial assumptions provided by Customer and/or
Customer's actuary to develop the software f6r Customer. Company will rely on this information without
audit. Company does not set actuarial assumptions.
Company will provide software with financially sound projections and analysis, -but does not guarantee
compliance with actuarial standards for funding and accounting purposes under Government Accounting
Standards Board Or Generally Accepted! Accounting Principlcs. ;
The software will not be prepared in accordance with the actuarial standards of practice oi, . actuarial
compliance guidelines as promulgated by the -American Academy of Actuaries nor will outputs constitute
a Statement of Actuarial Opinion. Software results are not suitable for financial reporting purposes.
While the software is tested against actuarial valuation results, the software results will not match, nor are
intended to match actuarial valuation results.
Actuarial Services and Technology
Licensing Agree new
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GovInvest
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Agreement No. 5854
Exhibit D
AI i 'ITIO' A.L Tffi?&S
FOR GOVINVEST AGREEMFNT:
1. INSUIbliNCE.
A. Before commencing performance under this Agreement, and at all other times this
Agreement is effective,, GovInvest will procure and maintain the following types
of insurance with coveragc limits, complying, at a minimum, with the limits set
forth below:
Type of Insurance Limits -
Commercial general liability: $2,000,000
Professional Liability $1,000,000
Technology Errors $1,000.000
and Omissions Liability
Cyber Liability $1,000,000
Privacy Liability $1,000,000
Workers compensation Statutory requirement
B. Commercial general liability insurance will meet or exceed the requirements of
ISO -CGL Form No. CG 00 01 1185 or 88. The amount of insurance set forth
above will be a combined 5ingle Iiinit per occurrence for bodily injury, personal
injury, and property damage for the policy coverage. Liability policies will be
endorsed to name City, its officials, and employees as ".additional insureds" under
said insurance coverage and to state that such insurance will be deemed "primaty"
such that any other insurance that may be carried by City will be excess thereto.
Such insurance will be on an "oceurrcnce," not a "claims made," basis and will
not be cancelable or subject to reduction except upon thirty (30) days prior written
notice to City.
C. Professional liability coverage will be on an "occurrence basis" if such coverage
is available, or on a "claims made" basis if not available. When coverage is
provided on a "claims made basis," GovInvest will continue to renew the
insurance for a period of three (3) years after this Agreement expires or is
terminated. Such insurance will have the same coverage and limits as the policy
that was in effect during the term of this Agreement and will cover Govinvest for
all claims made by City arising out of any errors or omissions of GovInvest, or its
officers, employee's or agents during the time'this Agreement was in effect.
U. Technology Errors and Omissions Liability Insurance will cover all third party
Agreement No. 5854
claims arising out of any act, error, omission or breach of contract provision of
GovInvest's technology services, including loss arising from destruction of data,
a,
in the amount set forth above per occurrence.
E. Cyber Liability Insurance to cover all third party loss from hacking attack or virus
emanating from or passed through Govinvest's computer system or a cloud
provider's system -into City's systems in the amount set forth above per
OCCUITC11ce.
F. Privacy Liability Insurance to cover all security breach and notification cost
resulting in actual or suspected loss of personal information or any other records
considered confidential for the City's data located on service providers servers of
on a cloud computing provider's system in the,-:unount set forth above per
occurrence.
G. Each such liability policy shall name the City of El Segundo as an Additional
Insured for such liability of the City, and each such first -party shall name the City
as a Loss Payee. GovInvest will furnish to City duly authenticated Certificates of
Insurance evidencing maintenance of the ins * urance required under this Agreement
and such other evidence of insurance or copies of policies as may be reasonably
required by Pity from time to time. Insurance must be placed with insurers with a
current A.M. Best Compahy Rating equivalent to at least a Rating of"A:Vll.'-
H. Should GovInvest. for any reason, fail to obtain and maintain the insurance
required by this Agreement, City may obtain such coverage at GovInvest's
expense and deduct the cost of such insurance from payments due to GovInvest
under this Agreement or terminate.