Loading...
HomeMy WebLinkAbout10-15-18 City Commission Packet Materials - C8. PSA with Alcohol Monitoring Systems for Drug Testing for V.E.T.S. Court Page 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Renee Boundy, V.E.T.S. Court Coordinator SUBJECT: Authorize the City Manager to sign the Professional Services Agreement with Alcohol Monitoring Systems, Inc. for services of Drug Testing for the Bozeman Veteran Eligible Treatment Services (V.E.T.S.) Court MEETING DATE: October 15, 2018. AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign the Professional Services Agreement with Alcohol Monitoring Systems, Inc. for services of Drug Testing for the Bozeman Veteran Eligible Treatment Services (V.E.T.S.) Court BACKGROUND: One of the best practice standards for adult treatment courts which the Bureau of Justice Assistance Drug Court Implementation Grant (2017-VV-BX-2006) requires is 1) “Drug and alcohol testing provides an accurate, timely and comprehensive assessment of unauthorized substance use throughout the participants’ enrollment.” (National Association of Drug Court Professional’s Adult Drug Court Practice Standards) We use the services of AMS to meet this standard for participants that would otherwise have to travel long distances to test or participants that need a heightened level of supervision at some point during their treatment. UNRESOLVED ISSUES: None ALTERNATIVES: As directed by the commission. FISCAL EFFECTS: These costs will be fully reimbursable by a combination of the Bureau of Justice Assistance Drug Court Implementation Grant (2017-VV-BX-2006) and participant fees. Attachments: Professional Services Agreement with AMS, Exhibit A Report compiled on: October 4, 2018 86 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 1 of 10 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 2018, by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and Alcohol Monitoring Systems, Inc., hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit “A” and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will terminate on the 3rd day of March, 2020. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in Exhibit A, the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. 87 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 2 of 10 b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 88 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 3 of 10 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or willful misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising 89 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 4 of 10 from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non- contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a sixty (60) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 90 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 5 of 10 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled 91 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 6 of 10 to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be J. Colleen Herrington, Municipal Court Judge, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to J. Colleen Herrington as the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents as listed above and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Moses Leasiolagi or such other individual as Contractor 92 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 7 of 10 shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13 Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. Nondiscrimination: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. The Contractor shall require these nondiscrimination terms of its subcontractors providing services under this agreement. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City 93 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 8 of 10 shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 19. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 94 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 9 of 10 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other 95 Professional Services Agreement for Alcohol Monitoring Systems FY 2018 – FY 2019 Page 10 of 10 than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 30. Extensions: this Agreement may, upon mutual agreement, be extended for a period of one year by written agreement of the Parties. In no case, however, may this Agreement run longer than December 31, 2020. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA Alcohol Monitoring Systems, Inc CONTRACTOR By________________________________ By__________________________________ Andrea Surratt, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 96 Exhibit A Scope of Work AGENCY: City of Bozeman This EXHIBIT A to the Professional Services Agreement (the "Agreement") is entered into on the Effective Date by and between ALCOHOL MONITORING SYSTEMS, INC., ("AMS") and the Agency identified above. This Schedule is incorporated by reference into the Agreement date And executed by the parties. The effective date of this Exhibit A is the date signed by AMS ("Effective Date"). GENERAL SCOPE OF AGREEMENT: Subject to the terms and conditions of the Agreement, Agency shall have the option to purchase or rent SCRAM Continuous Alcohol Monitoring Equipment and receive Monitoring Services from AMS to enable Agency to acquire and track information about Alcohol use of participants in the Bozeman Veteran Eligible Treatment Services Court. 1 COMMERCIAL TERMS FOR EQUIPMENT AND SERVICES 2.1 Terms and Pricing of Products 2.1.1 Equipment- Agency may purchase Equipment at the prices set forth herein. Daily Services Fees for the Services apply to this Equipment when it is in use. Agency may also rent Equipment for the Active Unit Daily Fees specified on this Schedule. Active Unit Daily Fees include the Services specified herein. Any Daily Services Fees for purchased Equipment and any Active Unit Daily Fees will be invoiced to Agency for all Equipment in use during any portion of a day during the month. For purposes of this Schedule, the term "Active" is defined as any Equipment that is assigned to a Client and accessing the Monitoring Software (currently SCRAMNET and INSIGHT). Agency shall use the AMS Equipment Order Form for additional Equipment ordered by Agency during the Term. 2.1.2 Spare Equipment Fees - Active Unit Pricing. For Agencies with any Equipment in inventory acquired under Active Unit pricing, Agency is allowed to maintain up to a specified percentage of its Equipment in use for the month as spare inventory as identified on Attachment 1 hereto ("Spare Allowance"). After the first sixty (60) days from the Effective Date of this Schedule, if it is determined by AMS, based on the Agency's utilization rate for the month, that Agency's unused inventory is in excess of the Spare Allowance amount, AMS will invoice and Agency will pay a Daily Shelf Fee. The Daily Shelf fee is calculated as number of active Equipment units will be calculated as the number of active Equipment units per day, per month as compared to the average Equipment in inventory per day, per month. The Spare Allowance and Daily Shelf Fee are as specified in the Attachment 1 hereto. Agency must return any excess Equipment inventory in order to avoid being charged a Daily Shelf Fee. 2.1.3 Shipment and Delivery Terms- Products ordered by Agency shall be delivered 97 FOB to Agency's designated facility. AMS shall determine the type of packaging, mode and time of transportation. Agency shall be responsible for all shipping fees related to any shipments of the Equipment or Parts, including new orders and returns. 2.2 Fees for Services. Agency shall pay AMS for the Services described in Section 3 and for the right to access the Monitoring Software at the current per diem rate for each SCRAM GPS Kit in use on a Client, (collectively, the "Daily Services Fee"). The current per diem rate as of the Effective Date is specified herein. 3 SERVICES 3.1 General Scope of Services ("Services"). In consideration of the payment by Agency of the Daily Services Fee or Active Unit Daily Fee for the Equipment, AMS shall provide Agency with the Services and support functions set forth herein (the "Services"). Further, unless otherwise expressly agreed to by the parties, AMS is not obligated to and will not provide Services for any Equipment not purchased or rented by Agency directly from AMS. The Services shall consist of: i) the remote collection and compilation of reports and data from the Equipment via the Monitoring Software; (ii) the provision of training and certification for Agency personnel as described below; (iii) the provision of technical support and telephone assistance from AMS professionals;(iv) the scheduled maintenance of the Equipment; (v) the provision of reasonable disaster recovery and backup Services for Client data stored on the Monitoring Software; and (vi) the provision of such other services and support functions as may be agreed to in writing by the parties from time to time. 3.2 Training and Certification. AMS will provide Agency with personnel training certification in the use of the Products at AMS' then-current training rates. In addition, AMS will provide Agency with access to a reasonable number of copies of the SCRAM Continuous Alcohol Monitoring Kit Quick Reference Guide and training modules on AMS University 3.3 Equipment Maintenance. AMS and Agency shall establish a routine maintenance program designed to keep the Equipment in good repair, working order and condition in accordance with AMS' then-published specifications, including establishing a schedule that will ensure the return of the Equipment to AMS at approximately annual intervals. Unless otherwise agreed, Agency shall be responsible for (i) collecting any Equipment from Clients that is scheduled for maintenance and (ii) shipping it to AMS having first obtained a Return Merchandise Authorization (RMA) Number from AMS. Such maintenance program shall not cover Equipment damaged or rendered inoperative for any cause not due to defects covered by the service and repair policy in this Agreement. Agency shall not, without prior approval from AMS, send to AMS for maintenance any Equipment not then scheduled for maintenance. Equipment returned to AMS for any reason, including rental returns, damages, and scheduled repairs, that are not 98 accompanied with a properly issued RMA may be assessed a returned administrative charge. 3.4 Agreements with Clients. Agency is solely responsible for notifying Clients in writing of any restrictions or limitations on the use of the Equipment of which it is made aware by AMS. These mandatory restrictions and prohibitions to be communicated to Clients are available on SCRAMNET in the form of a "Participant Agreement". This Participant Agreement is not intended to cover all possible requirements of the relationship between Agency and its Clients and should be reviewed by Agency's legal advisors prior to use. Agency agrees to hold AMS harmless for the failure of Agency to notify Clients of the restrictions and prohibitions contained in the Participant Agreement and for the failure of Clients to heed the restrictions and prohibitions contained therein. 4. ACCESS RIGHTS: In consideration of the payment of the Daily Services Fees set forth below and subject to the terms and restrictions set forth herein, AMS grants Agency a limited, non- exclusive right to access the Monitoring Software for the purpose of monitoring Client data. 5. TERRITORY: Gallatin County 6. EQUIPMENT AND SERVICES FEES FOR SCRAM GPS: Purchase Pricing: Item Quantity Price Daily Service Fees SCRAM Continuous Alchol Monitoring Set (Bracelet and Base Station) (Cellular WiFi) 1-49 $1561.50 $5.27 SCRAM Continuous Alchol Monitoring Bracelet 1-49 $1108.35 $4.27 Active Rental Pricing Item Quantity Active Unit Daily Fees Daily Shelf Fees SCRAM Continuous Alchol Monitoring Set (Bracelet and Base Station) (Cellular WiFi) 1-49 $7.55 $1.82 SCRAM Continuous Alchol Monitoring Bracelet 1-49 $6.35 $1.82 99 *Active Unit pricing is inclusive of both the rental of the Equipment and Daily Services Fees. Agency is allowed a 20% shelf stock allowance. This means that 20% of its total inventory (both in use and not in use may sit on the shelf (not in use), at no charge for Shelf Fees. 7. ADDITIONAL TERMS: Pricing is in accordance with that offered in the U.S. General Services Administration (GSA) Schedule Contract #GS-07F0003Y. 100