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HomeMy WebLinkAboutC31281 - Extend Contract with Office DepotContract No. C31281 CITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT Request: Exercise the option of the first of two one-year extensions to Contract No. C31280 with Office Depot for procurement of general office supplies for the City of Palm Desert Date: Contents: Recommendation October 25, 2012 Agreement By Minute Motion, that the City Council exercise the option of the first of two one-year extensions to Contract No. C31280 with Office Depot effective October 27, 2012, for the procurement of general office supplies for the City of Palm Desert. Background On October 27, 2011, following notification of solicitation of bids, the City Council awarded Contract No. C31280 to Office Depot for the procurement of general office supplies. The contract was for a period of one year, with two possible one-year extensions. Over 90% of general office supplies such as colored copy paper, folders, writing instruments and paper accessories are purchased through the online ordering system available through Office Depot, and staff is satisfied that this process continues to meet the needs of the City. This agreement between the City of Palm Desert and Office Depot is "piggybacked" on the State of Florida, Department of Management Services, whose original term will expire on October 17, 2013 with an option to extend for three additional years. Staff recommends that at this time Council exercise the City's option to extend the contract for one year. Fiscal Impact Continuing to contract with Office Depot secures the current low prices for an additional term, and already offers extremely competitive pricing. Sub *tted By: Paul S. Gibson, Director of Finance uth, City Manager CITY COUNCILACTION APPROVED_ DENIED RECEIVED OTHER MEETING DATE I C) - a .5 -a 01 �_ AYES: i F w qI k "Kroone.ai < < re- 0 t_ NOES: LQft-- ABSENT: _1l baP . ABSTAIN: M WP _ VERIFIED BY: Jra Original on File with City Clerk's 0—ffice Contract No. C31280 EXECUTION COPY THE STATE OF FLORIDA, DEPARTMENT OF MANAGEMENT SERVICES PIGGYBACK CONTRACT BETWEEN CITY OF PALM DESERT AND OFFICE DEPOT, INC. This Piggyback Contract ("Contract") is made and entered into this 27th day of October, 2011 ("Effective Date"), by and between the City of Palm Desert (hereinafter referred to as the "Customer"), and Office Depot, Inc., a Delaware corporation with corporate headquarters located at 6600 North Military Trail, Boca Raton, FL 33496 (hereinafter referred to as "Office Depot"). WITNESSETH: WHEREAS, the State of Florida, Department of Management Services and Office Depot entered into that Contract 618-000-11-1, effective as of. October 18, 2010, for Office and Education Consumables, including all exhibits and amendments thereto, pursuant to Invitation to Negotiate No. 618-001-10-1 (the "Master Agreement"); and WHEREAS, the Master Agreement permits government entities to purchase goods and services in accordance with terms and conditions set forth in the Master Agreement; and WHEREAS, the undersigned representative of the Customer is authorized, on behalf of the Customer, to contract with Office Depot for the purchase of the office supplies and services in accordance with the terms of the Master Agreement; and WHEREAS, the Customer has requested, and subject to the terms and conditions herein, Office Depot hereby agrees to offer products in accordance with the Master Agreement. NOW, THEREFORE, in consideration of the mutual covenants, benefits and promises herein stated and in conjunction with the cooperative agreement referenced, the parties hereto agree to the following terms and conditions: INCORPORATION OF MASTER AGREEMENT. The purpose of this Contract is to allow the Customer to purchase supplies from Office Depot at the discounted prices set forth in the Master Agreement. To that end, the Master Agreement is hereby incorporated by reference as if set forth herein in its entirety, including all subsequent amendments thereto. 2. CREDIT TERMS. Customer's credit limit shall be established by Office Depot's credit department. Office Depot reserves the right to lower Customer's credit limit or refuse to ship any orders if at any time: (a) Customer's account is materially past due and Customer has not responded with a reasonable response within three (3) business days of written notice of said delinquency to work with Office Depot to resolve the issues; (b) in Office Depot's commercially reasonable opinion, Customer's credit standing becomes impaired as a result of Customer's payment habits having slowed down to an unsatisfactory level with all non -critical suppliers including Office Depot; (c) Customer's financial condition becomes unstable based on Customer's financial reports or reputable third party ratings, or (d) if there are severe risk alerts from reputable third party credit bureaus. 3. NOTICES. All notices, requests, demands and other communications under this Agreement shall be given in writing. Such notices shall be deemed to have been given when delivered in person or three (3) business days after being sent via certified mail or upon delivery if sent via reputable overnight delivery service and addressed to the appropriate party at its mailing address set forth below: Contract No. C31280 EXECUTION COPY To Customer: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Rachelle D. Klassen, CMC City Clerk To Office Depot: Office Depot, Inc. 6700 Auto Mall Parkway Fremont, CA 94538 Attn: Patrick H. Welch, Regional Vice President with a copy to: Office Depot, Inc. 6600 North Military Trail Boca Raton, FL 33496 Attn: Office of the General Counsel 4. TERMINATION FOR CONVENIENCE. Either party may terminate this Contract for convenience by providing the other party sixty (60) days prior written notice. IN WITNESS WHEREOF, the Customer and Office Depot have executed this Contract on the Effective Date. OFFICE DEPOT, INC. By: Name: PatricPatrick-W Welch Title: Regional Vice President Date: 2— ATTE Name: R the a D. Klassen. City Clark City of Palm Desert: CA Reviewed a,. xt CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of k, yers,de-. On ilt)uorq :RO12- before me, /rJ C'.177C1�fii]eZ �a>Rctr U IdccFjl,c Date Here Insert Name and Titid of the OMcer personally appeared jecti-) n). del),_Yli ----" Name(s) of Signer(s) M. G MARTINEZ com^tission * 190633. Notary Public - California Riverside County M Comm. Expires Oct 29, 4J, who proved to me on the basis of satisfactory evidence to be the person($) whose name($) is/ar4 subscribed to the within instrument and acknowledged to me that Ob/shett4y executed the same in t4ftr/ther authorized capacity(ids), and that by hA/her/t�ir signature(A) on the instrument the person( , or the entity upon behalf of which the personv) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Place Notary Seal Above 5 a re o Notary Public OPTIONAL Though the information below is not required by law, it may prove va uabfe top ons relying on he docume and could prevent fraudulent removal and reattachment of is for o another docum Description of Attached Doocut Title or Type of Document:63ilr io ` �CC Dyf, � t . Document Date: Number of Pages:_ Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: ���ctn M- i�'(�11jUi1, Signer's Name: ❑ Corporate Officer — Title(s): — ❑ Individual ❑ Partner — ❑ Limited 17 General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: �Signer Is Re esenti g: '1��In 1 1�/ D Corporate Officer — Title(s): 0 2009 National Notary Association • NauonalNotary.org • 1-800-US NOTARY (1-800-876.6827) Item s5907 Contract No. C31280 MWDSC CONTRACT BETWEEN FLORIDA DEPARTMENT OF MANAGEMENT SERVICES AND OFFICE DEPOT CONTRACT 618-000-11-1 Q1, lead This Contract is by and between the State of Florida, Department of Management Services (Department), Division of State Purchasing (Division), an agency of the State of Florida with offices at 4050 Esplanade agency Way, Tallahassee, Florida 32399-0950, and Office Depot (Contractor). Whereas, the Contractor replied to the Divisions Invitation to Negotiate (ITN), No.: 618-001-10-1 — Office and Educational Consumables and Whereas, the Division negotiated and accepted the best terms and conditions for Office and Educational Consumables pursuant to Section 287.057(l) (c). Accordingly, and in consideration of the mutual promises contained in the Contract documents, the Department and the Contractor do hereby enter into this Contract. 1.0 NAME OF PROJECT Office and Educational Consumables. 2.0 SUMMARY OF THE CONTRACTUAL SERVICES (SCOPE OF WORK) The scope of products for this Office and Educational Consumables contract are described in section 1.2 of the ITN document and are summarized in the table below. The Product Categories listed below refers to categories covered under this agreement. Product Categories in Scope • Consumables ■ Breakroom & Cleaning Supplies ■ Folders, Binders & Accessories ■ Paper — Other • Paper - 20W White (Recycled and Virgin) • Toner HP • Toner Non HP • Toner Remanufactured ■ IT Peripherals • Equipment 3.0 DELIVERABLES The ITN identifies all the performance requirements and expectations to be satisfied by the contractor throughout the term of the contract. However, included below are the primary deliverables related to the scope of work above. Also included below are the required minimum level of service and criteria for evaluating successful completion of each deliverable. The Contractor will provide the following Deliverables: 3.1 Monthly Service Level Agreement Metrics and Reports: Contract No.: 618-000-1 1-1 Page 1 of 6 MWDSC Contract No. C31280 Q 14, Delivery A. Delivery Timing — The Contractor shall maintain an on -time delivery rate of 95% or greater. On -time delivery will be defined as delivery of order within two (2) business days of placement of order. This SLA supersedes Section 4.11 Transportation and Delivery of the General Conditions. The contractor shall submit to the Department this monthly service level agreement report in Microsoft Excel that details the on -time delivery rate. Specifically, the report shall include the number of orders delivered complete within the 2 business day requirement divided by total number of orders delivered. B. Order Accuracy - The Contractor shall maintain an order accuracy rate of 98% or greater. Order accuracy rate is defined as the number of items delivered as ordered divided by the total number of items ordered. The contractor shall submit to the Department this monthly service level agreement report in Microsoft Excel that details the order accuracy rate. Specifically, the report shall include the number of orders with order accuracy rate of more than 98% divided by total number of orders. C. Order Completeness / Fill - The Contractor shall maintain an order fill. rate of 95% or greater. Order fill rate is defined as a number of items on an order filled completely as ordered divided by to the total number of lines on an order. The contractor shall submit to the Department this monthly service level agreement report in Microsoft Excel that details the order fill rate. Specifically, the report shall include Number of orders with order fill rate of more than 95% divided by total number of orders. D. Price Accuracy - The Contractor shall maintain a price accuracy rate of 99.5% or greater. Price accuracy is defined as the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category). The Contractor shall obtain a third party firm at no additional cost to the State to conduct external price audits on this contract. The Contractor shall contract with a third parry firm (to be approved by the Department) to conduct a monthly random sampling (a minimum of 570 items per month) of contract items to confirm the accuracy of list price, discount % and net price. Specifically, the third party firm will confirm the prices displayed on the Contractor's website are equal to or less than the contract terms. The third parry firm shall provide a monthly report to the Department indicating the Price Accuracy Rate (Price Accuracy Rate = the number of audited items each month where the net price (calculated by multiplying the list price by I minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category) divided by the number of audited items). Also, at a minimum, the monthly report shall identify items not in compliance with the contract terms, provide the date of the audit, and screenshots of the Contractor's on-line catalog of all items in the random sample that were not in compliance with the contract terms. E. Backorder Fill — The contractor will ship backorders within five (5) calendar days of original order, unless special circumstances apply. The contractor will submit to the Department at the customer or the Departments request a report in Microsoft Excel that details the item name and product ID, reason for shortage, and plan of action when delivery may be expected or suggested replacement). 3.2 Quarterly Sales Report Data: The Contractor shall report sales data to the Contract Manager on a quarterly basis using the Contract Quarterly Reporting Form in Attachment G — Quarterly Reporting Form. Contract No.: 618-000-1 l-1 Page 2 of 6 Contract No. C31280 The following summary data must be reported to the Contract Manager on a quarterly basis: • Total purchases on the contract for the quarter • Total purchases on the contract for the quarter by Eligible User • Total purchases for the quarter made using the State's Purchasing Card • Total Certified Vendor (including Minority, Women, and. Service -Disabled Veteran) purchases for the quarter by Eligible User. The following detailed data must be reported to the Contract Manager on a quarterly basis in Excel spreadsheet format: • Eligible User (Customer) Entity Name • Product Category • Item Description • Manufacturer Name • Manufacturer Part Number • UPC • Unit of Measure • Quantity Shipped • Date Shipped • List Price • Invoice Price • Core Item Flag (indicates if item is on Core Items list) • P-Card Flag (indicates if transaction was paid for using a P-Card). • Flag Purchases made within the stores (if applicable) 3.3 Annual Service Level Agreement Metrics and Reports: A. Price Accuracy - The Contractor shall maintain a price accuracy rate of 99.5% or greater. Price accuracy is defined as the number of audited items each month where the net price (calculated by multiplying the list price by I minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by I minus the discount % for that product category). The Contractor shall Contract with a third party firm (to be approved by the Department) to conduct an annual (on each anniversary of the contract effective date) sampling of Customer invoices (a minimum of 600 customer invoices for the 12 month period) to confirm accuracy of list prices and discount %, and that net prices of invoiced items are equal to or less than the contract terms. Specifically, the third party firm will confirm the price charged to the Customer is equal to or less than the contract terms during that time period. The third party firm shall provide an annual report to the Department indicating the Price Accuracy Rate (Price Accuracy Rate = the number of audited items each year where the net price (calculated by multiplying the list price by I minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by I minus the discount % for that product category) divided by the number of audited items). Also, at a minimum, the annual report will include copies of the invoices in the random sample that were not in compliance with the contract terms. Contract No.: 618-000-11-1 Page 3 of 6 WDSC Contract No. C31280 4.0 SUMMARY OF PEANALTY FOR FAILURE OF CONTRACTOR TO MEET DELIVERALBES The Contractor is required to meet the performance standards as described in Section 3.0 above. Contractor is required to meet performance standards. for. Dolivery Timing, Order Accuracy, Order Completeness/Fill and Price Accuracy on standard contract orders only, special/custom orders can be excluded from the calculations of these performance standards. Failure to meet the performance standards specified will result in the specified damages to the State as shown in the chart below. On the 15'" of the month following the month being reported, the Contractor shall submit a report to the Contract Administrator containing the information required in Section 3.0 above. Performance Assurances, if applicable, will be paid via check or money order made out to the Department of Management Services in US Dollars within 30 days after report submission. These damages are assessed for failures over each 12 month period beginning with the first full month of contract performance and every 12 months thereafter. Item First Second Third Fourth Fifth Each Failure Failure Failure Failure Failure* Additional Failure Submit Report $0 $500 $500 $1,000 $2,000 $3 000 Delivery $0 $0 S1,000 S1,000 S2,000 S3,000 Timing — less than 95% on time Order $0 $0 $1,000 $1,000 $2,000 $3,000 Accuracy — less than 98% of items delivered are accurate Order $0 $0 $1,000 $1,000 S2,000 $3,000 Completeness/ Fill — less than 95% Price Accuracy $0 $0 $2,000 $3,000 $4,000 $5,000 — less than 99.5% *Note: if respondent fails to meet the performance standards 5 or more times in a 12 month contract 4 period, the State shall have grounds to initiate contract breach and termination proceedings. ermination WSC 5.0 EFFECTIVE DATE 12 This Contract shall begin on October 18, 2010, or on the last date in which it is signed by all parties, whichever is later. 6.0 EJTIRATION DATE ADSC This Contract shall expire three years from the effective date of the Contract, unless cancelled 2 earlier in accordance with its terms. gDSC 7.0 RENEWAL 2 Upon mutual written agreement, the Department and the Contractor may renew the Contract for up to three (3) years as allowed by Section 287.057 (13)(a), Florida Statutes and pursuant to the provision of PUR 1000 Section 26. Contract No.: 618-000-1 1-1 Page 4 of 6 Contract No. C31280 8.0 INTELLECTUAL PROPERTY The parties do not anticipate that any intellectual property will be developed as a result of this contract. Any intellectual property developed as a result of this contract will belong to and be the sole property of the state. This provision will survive the termination or expiration of the contract. 9.0 PREFERRED PRICE The Contractor agrees to submit to the Department at least annually an affidavit from an authorized representative attesting that the Contractor is in compliance with the preferred pricing provision in Section 5.14 Best Pricing Comparison of the ITN. 10.0 CONTRACT DOCUMENTS This Contract, together with the following attached documents, set forth the entire understanding of the parties with respect to the subject matter. In case of conflict, the terms of this Contract shall control. If a conflict exists among any of the attached documents, the documents shall have priority in the order listed: A. ATTACHMENT I: Office and Educational Consumables ITN No.: 618-001-10-1, as amended. B. ATTACHMENT U: Contractor's Response to the ITN. C. ATTACHMENT III: Contractor's Best and Final Offer Pricing. 11.0 CONTRACT MANAGEMENT A. Contract Manager The Department employee who is primarily responsible for overseeing the Contractor's performance of its duties and obligations pursuant to the terms of this Contract. The Contract Manager shall be as follows: Mark Hernandez Division of State Purchasing Department of Management Services 4050 Esplanade Way Tallahassee, FL 32399-0950 Telephone: (850) 414-6741 Fax: (850) 414-6122 E-mail: mark.hemandez(@.dms.mvflorida.com The Department may appoint a different Contract Manager, which shall not constitute an amendment to the Contract, by sending written notice to Contractor. Any communication to the Department relating to the Contract shall be addressed to the Contract Manager. B. Contractor's Representative Morrie Norwood Office Depot 4300-1 Tennessee Street Tallahassee, FL 32034 (city, state, zip) Telephone: 850-575-0255 Fax: 850-575-1581 E-mail: morrie.norwood(@officedepot.com Contract No.: 618-000-1 l-1 Page 5 of Contract No. C31280 State of Florida Department of Management Services By: Linda H. South Date Contractor: S gn*re Jinn ?OJJM� Print Name Date er TL Approved as to form and legality by the Department General Counsel's Office 4b, . G6trtS�Xn <�6 Date Contract No.: 618-000-1 1-1 rage o of o Contract No. C31280 Attachment II: Contractor's Response to the ITN. Contract No. C31280 Attachment III: Contractor's Best and Final Offer Pricing Product Category BAFO Office Depot Discount % off List Core Breakroom & Cleaning Supplies 40% Consumables 66% Folders, Binders & Accessories 70% Toner - HP 35% Toner - Non HP 32% IT Peripherals 34% Equipment 30% Non -Core Breakroom & Cleaning Supplies 40% Consumables 66% Folders, Binders & Accessories 70% Paper - Other 60% Toner - HP 35% Toner - Non HP 32% Toner - Reman 63% IT Peripherals 34% Equipment 30% Generic Core and Non -Core Consumables 79% Folders Binders & Accessories 75% Equipment 36% IT Peripherals ' 32% Paper - Other 71 % Breakroorn & Cleaning Supplies 55% Paper - 20# White (Recycled and Vir in 79% Toner - Non HP 61 % Toner — Remanufactured 63% BAFO Office Depot Volume Discounts Proposed When Annual Spend Level Exceeds... Additional Discount Off List Price Offered $5 000 000 0.00% $10,000 000 0.00% $15 000 000 0.00% $20 000,000 0.00% $25 000, 000 ___ 0.00% $30,000,000 0.00% $35,000,000 0.00% $40, 000, 000 0.00% $45,000,000 0.00% $50,000,000 0.00% $55,000,000 0.00% $60, 000,000 0.00% $65,000,000 0.00% $70,000,000 0.00% No. C31280 CONTRACT NO. C 31280 AGREEMENT THIS AGREEMENT is made and entered into the City of Palm Desert effective as of the 271h day of October 2011 by and between THE CITY OF PALM DESERT, a municipal corporation, hereinafter referred to as "CITY", and OFFICE DEPOT, INC., a Delaware corporation, referred to as "CONTRACTOR". WITNESSETH: WHEREAS, on October 27, 2011 it was recommended that CONTRACTOR be awarded the contract for one year with two possible one year extensions; and WHEREAS, pursuant to said invitation, CONTRACTOR submitted a proposal, which was accepted by CITY for said services. NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants- hereinafter contained, the parties hereto agree as follows: (1) TERM. The term of this Agreement shall be from October 27. 2011 through October 26. 2012 ("Initial Term") with two possible one year extensions or to such later date as may be agreed in writing between parties. In the event the CITY desires to exercise its right to extend the term of this Agreement, the CITY shall deliver written notice thereof to CONTRACTOR no later than sixty (60) days prior to the expiration of the then current term. Other than pricing, all terms and conditions of this Agreement shall remain in full force and effect during any extension term. (2) CITY'S OBLIGATIONS. For furnishing services, as specified in this Agreement, CITY will pay and CONTRACTOR shall receive compensation as follows: (a) Core List Pricing. CONTRACTOR agrees to supply to CITY those office products and services as set forth in Exhibit A attached hereto (the "Core List") at the prices set forth therein. With the exception of paper and toner/ink items, Core List pricing will be held firm for the Initial Term. In the event CITY exercises its right to extend the term of this Agreement, Core List pricing will be updated accordingly. Pricing for paper and toner/ink items on the Core List will fluctuate with market conditions, provided CONTRACTOR gives CITY at least thirty (30) days written notice before any paper or toner/ink price increase takes effect. Upon request, CONTRACTOR shall provide CITY with manufacturer documentation to verify that paper and toner/ink price adjustments are being appropriately passed through to CITY. The parties may update the Core List from time to time and as provided in this section by mutual agreement (including e- mail). Page 1 CONTRACT NO. C 31280 (b) BSD Catalog Pricing. Items not on the Core List ("Non -Core. Items") but identified in the printed Office Depot Business Solutions Division catalog ("BSD Catalog") in circulation at the time of the order will be priced at a maximum discount of 60% off list price, exclusive of bulk pricing discounts or other specials. BSD Catalog pricing will be updated each calendar quarter. Notwithstanding anything herein to the contrary, products in the following categories (as such categories are identified on www.officedepot.com) may be priced at the price set forth on www.officedepot.com at the time of the order: Technology, Custom Printing, Breakroom Supplies, Food and Beverage, Document and Copy Services, Promotional Products, and Warranties. Products may be discontinued at any time, without notice to CITY. (c) All Other Non -Core Items. Non -Core Items that are not identified in the BSD Catalog shall not be subject to the discounts set forth in this Section 2 and will be priced as mutually agreed to by the parties. (d) Pricing Adjustments. Notwithstanding any other provision of this Agreement, prices are subject to adjustment at any time during the Initial Term or any renewal term in the event of significant demonstrable increases in costs to CONTRACTOR resulting from changes in market conditions, stock availability, energy/utility costs and unanticipated supply .chain costs. CONTRACTOR shall provide CITY with all reasonably requested documentation as necessary to verify any price increases. (3) CONTRACTOR'S OBLIGATION. For, and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by CITY, CONTRACTOR agrees with CITY to furnish the services and to do everything required by this Agreement and the Specific Terms and Conditions. (4) HOLD HARMLESS AND INDEMNIFICATION. Each party (the "Indemnifying Party") agrees to defend, indemnify, and hold harmless the other party ("Indemnified Party"), its officials, officers, employees, representatives, and agents, from and against all claims, lawsuits, liabilities or damages of whatsoever nature arising out of the connection with, or relating in any manner to, any negligent act or omission of Indemnifying Party, his agents and employees thereof in connection with the performance or non- performance of this Agreement. The Indemnifying Party shall thoroughly investigate any and all claims and indemnify the Indemnified Party and do whatever is reasonably necessary to protect the Indemnified Party, its officials, officers, employees, agents, and representatives, as to any such claims, lawsuits, liabilities or damages. (5) AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing, signed by the CONTRACTOR and approved by the City Council of the CITY. Page 2 CONTRACT NO. C3128o (6) TERMINATION. Either party may terminate this Agreement with 30 days written notice for any reason. (7) INCORPORATED BY REFERENCE. The Notice Inviting Bids; General Terms and Conditions; Specific Terms and Conditions; Bid Submission Form(s), additional or supplemental specifications, drawing, maps or diagrams; and CITY issued forms relating to this project, are hereby incorporated in and made a part of this Agreement. (8) COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by this reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. (9) ANTI -DISCRIMINATION. In the performance of the terms of this Agreement, CONTRACTOR agrees that it will not engage in discrimination in employment of any person because of the age, race, color, sex, national origin or ancestry, or religion of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735. (10) AUDIT. CITY shall have the option, at its sole cost and expense, of inspecting and/or auditing all . non -confidential and non-proprietary records and other written material pertaining to the CITY's account and used by CONTRACTOR in preparing its statements to CITY. Audits shall be performed at mutually acceptable times and places, not to exceed one time per year, and shall only be conducted until that date that is one (1) year following termination of this Agreement. No third -party auditors shall be permitted. (11) NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail, return receipt requested, reputable overnight courier service; addressed as follows: Office of the City Clerk CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, CA 92260 Page 3 CONTRACT NO. C 31280 If to Contractor: Office Depot, Inc. 6700 Automall Parkway Fremont, CA 94538 Attn: Patrick H. Welch, Regional Vice President With a copy to: Office Depot, Inc. 6600 North Military Trail Boca Raton, FL 33496 Attn: Office of the General Counsel (12) LITIGATION COSTS. In the event an action is filed by either party to enforce any rights or obligations under this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and court costs, in addition to any other relief granted by the court. (13) AUTHORITY TO EXECUTE AGREEMENT. Both CITY and CONTRACTOR do warrant that each individual executing this Agreement on behalf of each party is a person duly authorized. (14) CONFIDENTIALITY. In the performance of or otherwise in connection with this Agreement, one party ("Discloser") may disclose to the other party ("Recipient") certain Confidential Information of the Discloser. "Confidential Information" as used in this Agreement shall mean all information obtained by the Recipient from the Discloser that is not generally known to the public and that a reasonable business person would deem confidential. The Recipient will treat such Confidential Information as confidential and proprietary of the Discloser and during and after the Term will: (a) use the Confidential Information of the Discloser solely for the purposes set forth in this Agreement; (b) take suitable precautions and measures to maintain the confidentiality of the Confidential Information of the Discloser; and (c) not disclose or otherwise furnish the Confidential Information of the Discloser to any third party other than employees or independent contractors of the Recipient who have a need to know the Confidential Information to perform its obligations under this Agreement, provided such employees or independent contractors are obligated to maintain the confidentiality of the Confidential Information. The obligations under this Section will not apply to any: (a) approved use or approved disclosure of any information pursuant to the exercise of the Discloser's rights under this Agreement; (b) information that is now or hereafter becomes generally known or available to the public other than through a violation of this Agreement; (c) information that is obtained by the Recipient from a third party (other than in connection with this Agreement) who was not under any obligation of secrecy or confidentiality with respect to Page 4 CONTRACT NO. C. 31280 such information; (d) information that is independently developed by the Recipient without reference to any Confidential Information; (e) any disclosure required by applicable law or court order, provided that the Recipient will use reasonable efforts to give advance notice to and cooperate with the Discloser in connection with any such disclosure, and provided further that the Recipient shall limit such disclosure to only that information that is required to be disclosed; and (f) any disclosure made with the explicit consent of the Discloser. The Recipient shall promptly return to the Discloser all copies of any Confidential Information of the Discloser in its possession or control upon request, or in any event, upon any termination or expiration of the Term. (15) ASSIGNMENT. Neither party shall assign this Agreement without the prior written agreement of the other party. (16) LIMITATION OF LIABILITY. Except for any claim for indemnification, in no event shall either party be liable for consequential, special, indirect or incidental damages, including but not limited to any damages resulting from loss of use or profits arising out of or in connection with this Agreement, whether in an action based on contract, tort (including negligence) or any other legal theory, even if the party has been advised of the possibility of such damages. (17) FORCE MAJEURE. Neither party to this Agreement shall be considered in default in the performance of its obligations to the extent that the performance of any such obligation is prevented or delayed by any cause which is beyond the reasonable control of such party. (18) NEGOTIATION. Mediation and Non -Binding Alternative Dispute Resolutions are Favored, Each party commits that in the event a dispute should arise under this Agreement or relating in any manner hereto, the parties shall first endeavor to resolve their dispute by good faith negotiations between or among the parties. If the parties are unable to resolve their dispute, then the matter shall be reviewed by a senior level executive of each party. In the event these senior officers are unable to resolve the matter, the parties agree to attempt to mediate their dispute within thirty (30) days after the dispute initially arose, using a third party mediator. All mediation proceedings shall be confidential, and no information exchanged in such mediation shall be discoverable or admissible in any litigation involving the parties. The costs of such mediation shall be equally divided between the parties. If such mediation is unsuccessful, then either party shall have the right to initiate litigation. (19) PAYMENT/CREDIT TERMS. Invoices' are due thirty (30) days from the date of invoice, and invoices not paid within thirty (30) days shall bear interest at the rate of 1.5% per month or the maximum amount allowed under law, from the due date of the invoice. CITY's credit limit shall be established by CONTRACTOR's Credit Department. CONTRACTOR reserves the right to Page 5 CONTRACT NO. C 3i2so lower CITY's credit limit or refuse to ship any orders if at any time; (1) CITY is delinquent in making payments to CONTRACTOR or is otherwise in breach of this Agreement or (2) in CONTRACTOR's reasonable opinion, CITY's credit standing becomes impaired or reasonably unsatisfactory to CONTRACTOR. (20) DELIVERY. The pricing set forth in this Agreement includes dock and/or mailroom delivery. Additional freight charges may apply for items exceeding 70 lbs. in weight and/or 110" in length/width, furniture, Hawaii, Alaska and Puerto Rico orders, special orders and/or rush deliveries. (21) CITY LOCATIONS. CITY locations to which this Agreement applies are set forth in Exhibit B attached hereto, which may be revised from time to time upon mutual written agreement of the parties. CITY will notify CONTRACTOR and work closely with its assigned account representative to provide appropriate contacts at CITY locations in order to implement this Agreement. (22) DISCONTINUED PRODUCTS. In the event an item that was initially offered under this Agreement is discontinued by CONTRACTOR or its supplier, CONTRACTOR will use commercially reasonable efforts to provide an acceptable alternative product to CITY at a similar discount off of list price. The parties may update the Core List from time to time to address discontinued items upon mutual agreement (including e-mail). (23) MANUFACTURER WARRANTIES AND RETURN POLICY. CONTRACTOR will pass through to CITY all manufacturer -supplied end user warranties on all products sourced to CITY pursuant to this Agreement. In addition, CONTRACTOR further agrees that in the event any in -stock product (non - special order) performs in a manner unsatisfactory to CITY within thirty (30) days of delivery, CITY may return same in its original packaging and will receive full credit against CITY's next Invoice for the amount of such return. (24) CHOICE OF LAW. This Agreement shall be construed and governed in accordance with the laws of the State of California, without regard to conflict of laws principles. (25) WAIVER. The waiver by either party of a breach or a default of any provision of this Agreement by the other party shall not be construed as a waiver of any succeeding breach of the same or any other provision. (26) COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. (27) SEVERABILITY. If any provision of this Agreement is held invalid or unenforceable, the balance of this Agreement shall remain in effect. Page 6 CONTRACT NO. C 31280 (28) SURVIVAL. Unless otherwise specified herein, all terms of this Agreement which by their nature extend beyond its termination, remain in effect until fulfilled, and apply to respective successors and assigns. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first hereinabove written. CITY OF PALM DESERT, A Municipal Corporation JEAN M. BENSON, MAYOR ATTEST: OFFICE DEPOT, INC. a Delaware corporation Signature — Authorized Representative Name & Title — Authorized Representative RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 7 CALIFORNIAALL-PURPOSE State of California County of On before me, onto Woe 4aart end Ta a-0-maker personally appeared ems(a) of Slyna e Plain NoWy Seel Above who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) Is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same In his/her/their authorized capacity(les), and that by his/her/their signature(s) on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. I certify. under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature S"kn of Notary M& OPTIONAL Through the Informadon below Is not reWrad by let% It may prove vsluable to persona rlel tg on fire document and could pnw enf fraudulent rwwval and reatmchment of this form to another document Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capadty(ies) Claimed by Signers) Signers Name: ❑ Individual U Corporate Officer —Tltle(s): — U Partner — ❑ Umited 0 General U Attorney In Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages. Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner - U Limited 177 General l; Attorney In Fact U T1 ustee Top of thumb hen .3 Guardian or Conservator 0 Other: Signer Is Representing: 02007 NaVand Notary Aeeodetlan • OM Oe Bop AM, P.O. Sae 2402 •Cheleararth, CA 81313.2402- wwveNAftWNoluyorp Nam JHV ReorderCad T*Ftw 1•80•B70.M7 CONTRACT NO. C 31280 Exhibit A Pricing ITEM Manufacturer NO.' Item No; BRAND' ITEM DESCRIPTION COST.` CURRENT UOM PRICE 256771 633-01 PAPERMATE PEN, COMFORTMATE, BK DZ 4.20 524912 88102/85580 PAPERMATE PEN, FLEXGRIP ELITE, BK DZ 6.49 524928 88104/85581 PAPERMATE PEN, FLEXGRIP ELITE, BE _ DZ 6.49 790761 31020 PILOT _ PEN, G2 MEDIUM, BK DZ 8 73 790801 31021 PILOT PEN, G2 MEDIUM, BE DZ 8.73 790841 31022 PILOT PEN, G2 MEDIUM, RD DZ 8.73 772141 77240 PILOT REFILL, G2 MEDIUM, BK, 2-PK PK 0.84 526587 1 77241 PILOT REFILL, G2 MEDIUM, BE, 2-PK PK 0.84 526596 PIL77242 PILOT REFILL, G2 MEDIUM, RD, 2-PK PK 2 21 120626 30000 PILOT PEN, BETTER, BK DZ 8.20 420869 30001 PILOT PEN, BETTER, BE DZ 8.20 447201 35001 SHARPIE PERM MARKER, XFINE, BK DZ 5.67 447334 35002 SHARPIE PERM MARKER, XFINE, RD DZ 5.67 447474 35003 SHARPIE PERM MARKER, XFINE, BE DZ 5.67 258361 35004 SHARPIE PERM MARKER, XFINE, GN DZ 5.67 203349 30001 SHARPIE PERM MARKER FINE, BK DZ 5.22 203356 1 30002 SHARPIE PERM MARKER, FINE, RD DZ 5.22 451906 30003 SHARPIE PERM MARKER, FINE BE DZ 5.22 742347 30004 SHARPIE PERM MARKER, FINE GN DZ 8.29 196228 22725 PAPERMATE HIGHLIGHTER, PEN -STYLE, YW DZ 2.41 196183 22726 PAPERMATE HIGHLIGHTER PEN -STYLE, GN DZ 2.41 196219 22709 PAPERMATE HIGHLIGHTER PEN -STYLE, PK DZ 2.41 193093 22710 PAPERMATE HIGHLIGHTER PEN -STYLE, BE DZ 2.41 181529 30301 PAPERMATE PENCIL, SHARPWRITER DZ 2,37 760513 52410 ZEBRA MECH PENCIL, Z-GRIP, 0.7 DZ 2.33 139608 BF05HB12 FORAY LEAD, REFILL, .5 12lrUBE, PK OF 12 TUBES PK 2.57 139616 BF07HB12 FORAY LEAD, REFILL .7, 12lrUBE, PK OF 12 TUBES PIC 2.57 320960 SW135108 SWINGLINE STAPLES, STANDARD, FULL STRIP, 5,000/BX BX 1.22 156385 W21421 WILSON JONES SHEET PROTECTORS ECON 100/BX BX 4.79 498147 1 11536 AVERY 5 TAB DIRECT PRINT DIVIDERS, 4 SETS BX 7.43 496711 11537 AVERY 8 TAB DIRECT PRINT DVIDERS, 4 SETS PK 8.51 364364 5160 AVERY MAILING LABELS 5160, 3,000/BX BX 15.15 944272 5366 AVERY FILE FOLDER LABELS 5366, 1,500/BX BX 15.30 463620 5163 AVERY MAILING LABELS 5163 BX 308239 10004 OFFICE DEPOT JUMBO PAPER CLIPS, 10BX/PK PK 15.61 308478 10001 OFFICE DEPOT SMALL PAPER CLIPS, 100/BX, 10 BX/PK PK 4.70 1.47 429415 825182BX OFFICE DEPOT BINDER CLIPS, SMALL 825182 RTP-001936-HD-087-07 OFFICE DEPOT BINDER CLIPS, SMALL, 144/PK 12 BXS OF 12 BX P►( 0.31 429431 825190BX OFFICE DEPOT BINDER CLIPS, MED 2.70 BX 0.65 Page 8 CONTRACT NO. C 31280 ITEM NO ` w Manufacturef Item No'��W.F BRAN�� ITEM DESCRIPTION'.: COST' UpN:' CURRENT pRiCE 825190 RTP 001948-HD-087-07 OFFICE DEPOT BINDER CLIPS, MED, 144/PK 12 BXS OF 12 PK 5.34 308957 RTP-001958-HD-087-07 OFFICE DEPOT BINDER CLIPS, LARGE BX 168 644060 _ 3330-14-48 POST -IT POST ITS, 14 PADS, 3X3 PK 9.27 285621 R-335 POST -IT _POST ITS, 6 PADS, POP UP, LINED PK 4.35 193259 630-6PK POST -IT POST ITS, RULED, 6 PADS PK 4.03 504808 660-5SSCY POST -IT POST ITS, RULED, 5 PADS PK 6.76 172460 _ 653YW POST -IT POST ITS, 1.5 X 2, 12 PADS PK 3.28 393770 680-RD12 POST -IT FLAGS, RED 50/PK, 12PK/BOX BX 13.70 393870 680-SH12 POST -IT FLAGS, "SIGN HERE" 50/PK, 12PK/BX BX 15.79 750406 680-NZ2 POST -IT FLAGS, "NOTARIZE" 50, PK, 2-PK PK 2.72 108862 9074-0379 OFFICE DEPOT CALCULATOR TAPE, 12/PK PK 2.28 554035 9074-0385 OFFICE DEPOT CALCULATOR TAPE, 100/CTN CT 20.03 431195 DP-1000RF6 SCOTCH PACKAGING TAPE, 6PK PK 7.85 305289 81OK24 SCOTCH MAGIC TAPE 24 PK PK 30.30 598614 60OK24 SCOTCH TRANSPARENT TAPE, 24PK, 3/4" X 1,000" PK 25.49 166702 68620 TOMBOW CORRECTION TAPE, WHITE, EA 1.39 340840 87268 OFFICE DEPOT CORRECTION FLUID WHITE DZ 4.60 535704 58003 OFFICE DEPOT LAMINATION POUCHES 50/BX BX 7.14 571101 95306-OD SCHOLASTIC GLUESTICK CLEAR .32 OZ DZ 1.72 812295 EA4001W SCHOLASTIC GLUESTICK, CLEAR 1.4 OZ EA 1.69 524405 99470-EA OFFICE DEPOT STENO PADS, 70 SHEETS/PD EA 0.71 306902 99422 OFFICE DEPOT WRITING PAD, 5X8 WHITE DZ 5.67 305466 99401 OFFICE DEPOT WRITING PAD, 81/2X11 WHITE DZ 8.65 223291 99419 OFFICE DEPOT WRITING PAD, 81/2X14, WHITE DZ 11.42 307397 99421 OFFICE DEPOT WRITING PAD 5X8, CANARY DZ 5.67 305706 99400 OFFICE DEPOT WRITING PAD, 8X11, CANARY DZ 8.65 223111 99420 OFFICE DEPOT WRITING PAD, 8X14, CANARY DZ 11.42 420187 SC115450D OFFICE DEPOT PHONE MESSAGE BOOK 5/PK PK 5.18 760839 77000010364 TDK MICROCASSETTE TAPE, 6PK PK 9.99 245035 RR1303 ADVANTUS PHONE WIPES, 72/PK BX 18.99 345660 3R11053 XEROX 20LB. PAPER 8.5X11, CANARY RM 7.72 345645 3R11051 XEROX 20LB. PAPER 8.5X11, GREEN RM 7.72 345637 3R11050 XEROX 20LB. PAPER 8.5X11, BLUE RM 7.72 345652 3R11052 XEROX 20LB. PAPER 8.5X11, PINK RM 7.72 919519 3R11060 XEROX 20LB. PAPER 8.5X11, CHERRY RM 7.72 478123 3R11058 XEROX 20LB. PAPER 8.5X11, SALMON RM 7.72 634008 77171 OFFICE DEPOT ENVELOPES WNVINDOW 500, #10 BX 12.31 633888 78125 OFFICE DEPOT ENVELOPES NO WINDOW, #10 BX 7.14 331000 77673 OFFICE DEPOT ENVELOPES 250/BOX 9 X 12 BX 10.12 331088 77688 OFFICE DEPOT ENVELOPES 250/BOX 10X 13 BX 12.49 330920 77998 OFFICE DEPOT ENVELOPES 100/BOX 10 X 15 BX 7.64 942862 C0738 COLUMBIAN ENVELOPES 250/BOX 12 X 15.5 BX 48.70 878043 C0729 COLUMBIAN ENVELOPES 250/BOX 6X9 BX 6.44 Page 9 CONTRACT NO. C 31280 ITEM NOt; Manufacturer ItenvNo, BRAND, , ITEM DESCRIPTION r:_ CUST:: : UOM� CURRENT PRICE 348151 C0880 COLUMBIAN ENVELOPES, INTERDEPT 100BX BX 18.99 937607 ET150L SMEAD MANILA FOLDERS (1008X), LETTER BX 9.66 937649 ET2-150C SMEAD MANILA FOLDERS 100BX . LEGAL BX 13.41 210617 ET2-150L SMEAD MANILA FOLDERS 1008X , END TAB LTR BX 10.61 935759 2K2403-1&3 SMEAD_ PRESSBD FLDRS TOPTAB (25BX), LETTER 2" EXP_ I BX 22.08 935767 _ 2K2503-1&3 SMEAD PRESSBD FLDRS TOPTAB 25BX , LEGAL 2" EXP BX 27.17 935775 2K3403-1&3 _^ SMEAD PRESSBD FLDRS TOPTAB 25BX , LTR 3" EXP bx 25.94 775435 _ 13724 SMEAD CLASS FOLDER, RD, 1 DIV, LTR, 10/BX BX 13.83 768300 14024 SMEAD _PRSSBD PRSSBD CLASS FOLDER, RD, 2 DIV, LTR, 10/BX BX 16.29 768265 14099 SMEAD PRSSBD CLASS FOLDER, RD, 3 DIV, LTR, 10/BX BX 2116 768175 19023 SMEAD PRSSBD CLASS FOLDER, RD, 2 DIV, LGL, 1018X BX 18.54 768140 19099 SMEAD PRSSBD CLASS FOLDER RD, 3 DIV, LGL, 10/BX BX 26.43 775455 13723 SMEAD PRSSBD CLASS FOLDER, GRN, 1 DIV, LTR, 10/8X BX 13.83 768305 14023 SMEAD PRSSBD CLASS FOLDER, GRN 2 DIV, LTR, 101BX BX 16.29 768270 14093 SMEAD PRSSBD CLASS FOLDER, GRN, 3 DIV, LTR, 10/BX BX 23.16 768210 18722 SMEAD PRSSBD CLASS FOLDER, GRN, 1 DIV, LGL, 10/BX BX 16.11 768180 19022 SMEAD PRSSBD CLASS FOLDER, GRN, 2 DIV, LGL, 10/BX BX 18.54 768145 19093 SMEAD PRSSBD CLASS FOLDER GRN, 3 DIV, LGL, 10/BX BX 26.43 Page 10 CONTRACT NO. C 31280 Exhibit B Customer Locations 1 CITY OF PALM DESERT 73510 FRED WARING PALM DESERT CA 92260 2 ADMIN SERVICES 73510 FRED WARING BLDG 2 PALM DESERT CA 92260 3 BUILDING & SAFETY 73510 FRED WARING BLDG 3 PALM DESERT CA 92260 4 BUSINESS SUPPORT 5 CITY CLERK 6 CITY COUNCIL 7 CITY MANAGER 8 CORP YARD 9 HUMAN RESOURCES 10 FINANCE 11 PLANNING 12 PUBLIC WORKS 13 REDEVELOPMENT 14 SPECIAL PROGRAMS 15 SUPPLY ROOM 16 VISITOR CENTER 73510 FRED WARING BLDG 1 PALM DESERT CA 92260 73510 FRED WARING BLDG 2 PALM DESERT CA 92260 73510 FRED WARING BLDG 2 PALM DESERT CA 92260 73510 FRED WARING BLDG 2 PALM DESERT CA 92260 73510 FRED WARING BLDG 3 PALM DESERT CA 92260 73510 FRED WARING BLDG 1 PALM DESERT CA 92260 73510 FRED WARING BLDG 1 PALM DESERT CA 92260 73510 FRED WARING BLDG 3 PALM DESERT CA 92260 73510 FRED WARING BLDG 3 PALM DESERT CA 92260 73510 FRED WARING BLDG 1 PALM DESERT CA 92260 73510 FRED WARING BLDG 2 PALM DESERT CA 92260 73510 FRED WARING BLDG 1 PALM DESERT CA 92260 73470 EL PASEO STE F7 PALM DESERT CA 92260 Page 11