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CONTRACT 3514 Professional Services Agreement CLOSEDPROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND ENFORCEMENT TECHNOLOGY, INC. This AGREEMENT is entered into this Z I day of August, 2005 by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY') and ENFORCEMENT TECHNOLOGY, INC., a California corporation (Corporation No. C1576234) ("CONSULTANT"). 1. CONSIDERATION.. A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT as set forth in attached Exhibit "A," which is incorporated by reference. Payment will be made as follows: CITY will pay CONTRACTOR the rates set forth in Exhibit A for each parking citation entered and processed by the AutoPROCESS System regardless of the ultimate disposition or processability of such citation. Out -of -State follow-up Collection Services and Special Collection Processing Services are in addition to regular processing as described in the Schedule of Fees. ii. CONSULTANT must provide CITY with a Citation Processing Activity Report (CPAR) on a monthly basis which CONSULTANT will use to prepare a statement and fee analysis for CITY that accurately reflects the AutoPROCESS System activity and the fees earned during the preceding period. CITY will either approve or reject the statement and fee analysis. If these documents are rejected by CITY, CONSULTANT will be notified, and both parties will use their best efforts to resolve the disputed items. iii. All postage for this agreement will be paid by CONSULTANT and then itemized on the monthly billing to CITY for reimbursement. If the postal rates increase during the term of this Agreement, the compensation CITY has agreed to pay CONSULTANT will be raised automatically to offset the direct effect of the postal increase paid by CONSULTANT. 2. SCOPE OF SERVICES. -1- A. CONSULTANT will perform services listed in the attached Exhibit `B," which is incorporated by reference. B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT. 4. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. 5. FAMILIARITY WITH WORK. A. By executing this Agreement, CONSULTANT agrees that it has: Carefully investigated and considered the scope of services to be performed; i;i. Carefully considered how the services should be performed; and iii, Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. -2- . } d 6. TERM. The term of this Agreement will be for five (5) years. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A"; B. Termination as stated in Section 14. 7. TIME FOR PERFORMANCE. A. CONSULTANT will not perform any work under this Agreement until: i.. CONSULTANT furnishes proof of insurance as required under Section 23 of this Agreement; and ii. CITY gives CONSULTANT a written notice to proceed. B. Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT's own risk. 8. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completion of the contracted services. If delay occurs, CONSULTANT must notify the Manager within forty-eight hours (48 hours), in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The Manager will extend the completion time, when appropriate, for the completion of the contracted services. 9. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below: A. Exhibit A: Scope of Work; and B. Exhibit B: Budget. 10. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 11. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. -3- 12. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 13. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 14. TERMINATION, A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. B. CONSULTANT may terminate this Agreement at any time with CITY's mutual consent. Notice will be in writing at least thirty (30) days before the effective termination date. C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT" own cost; CITY will not be obligated to compensate CONSULTANT for such work. D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section l(C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. 15. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of -4- CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 16. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or public CITY without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 17. INDEMNIFICATION. A. CONSULTANT agrees to the following: i. Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement. i. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 21, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions -5- concerning indemnification. 18. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. 19.INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 20. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement. 21. INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Limits Commercial general liability: $1,000,000 Professional Liability $1,000,000 Workers compensation Statutory requirement B. Commercial general liability insurance will meet or exceed the requirements of the most current ISO-CGL Form. The amount of insurance set forth above will be a combined single limit 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 "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such insurance will be on an "occurrence," not a "claims made," basis and will M 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," CONSULTANT 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 CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." E. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 14. 22. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. 23. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative description of progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update. 24. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: If to CONSULTANT: Enforcement Technology, Inc. 28 Hammond — Suite C Irvine, CA 92618 Attention: Linda French If to CITY: City of El Segundo 348 Main Street El Segundo, CA 90245-3885 Attention: Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of -7- actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 25. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 26. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 27. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 28. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 29. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 30. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. There are two (2) Attachments to this Agreement. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 31. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 32. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 33. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY's executive manager, or designee, may execute any such amendment on behalf of CITY. 34. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 35. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 36. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 37. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 38. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [Signatures on next page] 562 IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. C11'Y OF EL SEGUNDO Jeff Cit4 ATTEST: . ..... . . ........... "fir City Cl APPR( MARK B y: Gary E. President and T,axpayer ID No, 33 2 ' -10- I City of El Segundo EXHIBIT A 8/01/05 SCHEDULE OF FEES The processing fee per citation for the period of this Agreement will be based on one of the following options: Option #1: AutoPROCESS System, DMV Interface and Notice Mailings RATE PER CITATION ISSUED: $0.95 All costs for the base citation processing provided by the AutoPROCESS System and operated by the Agency pursuant to Article I of the Agreement. Other services provided by ETEC beyond the base citation processing are listed below. The 1st Delinquent Notice mailing (POSTAGE ADDITIONAL) is included in the price. AutoCITE COMPUTERS: (Parking or Traffic) $150/AutoCITE/Month X3 $200/AutoCITE/Month S4 - $250/AutoCITE/Month S4M Use of the AutoCITE System with the processing services, including the AutoCITE Host PC Software, Charger/Multiplexer, 56KB bps modem and full maintenance for the term of the service agreement. INTERNET WORKSTATION ACCESS: $100.00/month/workstation ADDITIONAL FEES: All Notices after 1st Notice (2nd Notice, Notices sent to lessees, renters, second registered owners and second addresses, or any other Notice or Letter deemed necessary) will be an additional fee of $.25 per item (POSTAGE ADDITIONAL). An additional fee of $.25 will be charged for any hand processing associated with any notice or correspondence. $20.00 will be charged to process NSF checks. HABITUAL OFFENDER LETTERS: Habitual Offender Letters will be prepared on Agency letterhead or on Parking Enforcement Center (ETEC) letterhead or both, accompanied by corresponding delinquent citation information from the habitual offender hotsheet report at a rate of $1.00 per letter mailed. OUT-OF-STATE FOLLOW-UP COLLECTION PROCESSING: The fees for Out -of -State citation follow-up collection processing shall be forty percent (40%) of the revenue received on Out -of -State citations that become delinquent, and thirty (30) days from the issue date. DELINQUENT IN -STATE FOLLOW-UP PROCESSING: The fees for In -State citation processing, prior to DMV Hold, shall be forty percent (40%) of the revenue received on In - State citations that become delinquent and are thirty (30) days from the issue date. A MINIMUM FEE OF $6,000 PER YEAR (which includes 0 AutoCITEs) WILL BE CHARGED Option #2 - In -House Operations of AutoPROCESS (Level 1) at the Agency with ETEC providing Delinquent Follow -Up Processing RATE PER CITATION ISSUED: $.75 (software only no hardware) + 40% on Delinquents -15- EXHIBIT B SCOPE OF SERVICES 1.1 COMPUTER PROGRAMS AND HARDWARE CONSULTANT will provide all the computer programs, written procedures and other supporting items used in carrying out the purpose of this Agreement. The AutoPROCESS System will be provided, hosted and supported by the CONSULTANT on the ETEC Service Center AutoPROCESS Server System, provided by the CONSULTANT. The daily operations of the AutoPROCESS System will be provided by CITY staff. Additional AutoCITEs may be provided as needed by CONSULTANT at a rate of $150.00/month (X3), $200.00/month (S4), $250.00/month (S4M) per handheld computer, if so desired by the CITY. AutoCITEs may be added and removed from client usage only by a written directive from the CITY. All such hardware and software are and will remain the property of the CONSULTANT. The CITY is responsible for any damage, loss, and/or theft of any/all computer hardware, software, and/or equipment supplied by the CONSULTANT and used by the CITY at the CITY location. The CITY will provide insurance coverage for such equipment as described herein. 1.2 BASE PROCESSING Citations issued by the CITY (AutoCITEs and manual) will be entered into the AutoPROCESS System by the CITY and cleared upon payment or other disposition. Requests for Registered Owner information will be generated on AutoPROCESS by the CONSULTANT and exported to the Departments of Motor Vehicles (DMV). Return information from the DMV to CONSULTANT will be imported into the AutoPROCESS System by CONSULTANT. DMV registration holds will be generated on AutoPROCESS by CONSULTANT and exported for the placement of DMV R/O holds on vehicles having unpaid parking fines and fees due against those vehicles in accordance with the California Vehicle Code and other applicable state and local laws. The CITY will be responsible for any and all Court, State, and DMV charges for the hold placement. DMV holds must be removed through DMV by the CONSULTANT when the registered owner satisfies the entire amount of parking citation fines, fees and penalties due against the vehicle. 1.3 NOTICE GENERATION AND MAILING The Notice of Illegal Parking (NOI) will be generated on AutoPROCESS by the Contrator and the CONSULTANT will mail these notices to the Registered Owner requesting the penalty and/or fine amount due. Postage for the notices will be paid by the CONSULTANT and billed to the CITY for reimbursement. Return payments will be made directly to the CITY. All collections and banking activity will be completed by the CITY. 1.4 SUSPENSION OF PROCESSING -11- CONSULTANT must suspend processing any citation referred to it for processing upon written notice to do so by the CITY. CONSULTANT must maintain records indicating any suspension of a citation as a result of CITY's request. CONSULTANT must be paid the contractual rate hereinafter provided for processing these suspended citations. 1.5 CONTESTED CITATIONS In the event a registered vehicle owner disputes the liability for the outstanding parking citation, the CITY must advise the registered vehicle owner of his/her right to request a court appearance, or an administrative review or hearing by the CITY. Reviews and Hearings will be conducted by the CITY. 1.6 CITATIONS DISPOSED OF BY REVIEW HEARING OR COURT The CITY, as a result of an administrative review or hearing, or court action, may be required to reduce, cancel or void, on an individual basis, parking citations which have been referred to it. CONSULTANT must be paid the contractual rate hereinafter provided for processing the citation regardless of the outcome of such action 1.7 SERVICE OPTIONS CITY must receive, and pay for services as outlined in Option #1 in Attachment "A" (Schedule of Fees). Written and signed direction to provide AutoCITE Computers must be issued by the CITY before such equipment is provided. CITY reserves the right to use any or all of the services, or to eliminate one or more of these services in Option #1, while maintaining a minimum annual billing of $6,000.00 for services. Equipment rental will be an additional cost. CONSULTANT billing must show costs analyzed into separate services provided showing numbers of items processed in each category of service. 1.8 OUT-OF-STATE CITATIONS Out -of -State citations will be entered onto the system the same as in -state citations. If they become delinquent a collection follow-up process will be completed by the CONSULTANT. Requests for registered owner information will be sent to the appropriate state CITY and delinquent notices will be mailed. The fine and penalty amounts will be requested from the registered owner and instructions issued for payment to be to the CONSULTANT. The fee for this follow-up collection service is listed on Exhibit "A." 2.1 PUBLIC INQUIRIES Telephone calls, and correspondence will be processed by the CITY. Explanations of the process for contesting violations, including the judicial appeal of the administrative review, hearing or court appearance, that may come to the attention of the CONSULTANT, will be -12- promptly forwarded to the CITY by the CONSULTANT. Court and/or CITY Hearings and Administrative Reviews will be scheduled and completed by the CITY, under strict guidelines of the CITY or Court where applicable. 2.2 CONSULTANT LIMITATIONS CONSULTANT may not do any of the following without CITY's prior approval, in writing: (a) Take any legal action; (b) Threaten any legal action; or (c) Make any communication, oral or written, regarding potential legal action. (d) Disclose any information regarding driving records or registration information which is in violation of the provisions of the laws of the State of California. 2.3 USE OF APPROVED FORMS All forms, delinquency notices and correspondence sent by the CONSULTANT must conform to State and local law and CITY procedures, and be approved by the CITY. 2.4 TAXES AND FEES The CONSULTANT will meet any CITY requirements for a Business License, Local or State Sales or Use Taxes, but the cost of such state or local taxes, or any other recurring fees will be the responsibility of the department operating our systems. The CONSULTANT will pay these taxes or fees when required and then bill the CITY accordingly. 3.1 MATERIALS CONFIDENTIAL All reports, information, data files and tapes furnished or prepared by the CONSULTANT, its sub-CONSULTANTs, successors or assigns (to the extent hereinafter allowed) for the purpose of transmittal to the CITY pursuant to this Agreement are confidential. 3.2 CONSENT REQUIRED FOR DISCLOSURE No report, information, data files or tapes furnished or prepared by the CONSULTANT or its sub -CONSULTANTS, successors or assigns, must be made available to any individual or organization without the prior written approval of the CITY, other than individuals or organizations who are reasonably necessary to effectuate the terms and conditions of this Agreement or as required by State law. -13- n � � 4.1 REASONABLE ASSISTANCE OF CONSULTANT In the event any claim or action is brought against the CITY relating to CONSULTANT's performance or services rendered under this Agreement, the CONSULTANT must render any reasonable assistance and cooperation which the CITY might require. 4.2 CITY COOPERATION In the event any claim or action is brought against the CONSULTANT relating to the CONSULTANT's performance of services rendered under this Agreement, the CONSULTANT must notify the CITY, in writing, within five (5) days, of said claim or action. CITY must render any reasonable assistance and cooperation which the CONSULTANT might require. SEE