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<br />176. <br /> <br />CONSUL TING AGREEMENT <br /> <br />This Consulting Agreement ("Agreement") is made effective Hay 14 ,2002, by and <br />between Pacific Technologies of Washington, Inc., a Washington corporation ("PTI"), and the City <br />of San Marcos, Texas ("Client"). <br /> <br />1. Retainer. Client does hereby retain PTI to provide certain consulting services <br />("Services") as set forth in the Statement of Work attached hereto as Attachment A and PTI <br />agrees to perform the Services. PTI agrees to designate in writing a single contact person <br />assigned to coordinate PTI's performance of the Services. Any changes to this designation must <br />be made by PTI in writing to the Client. <br /> <br />2. Payment Terms. Client shall make monthly progress payments to PTI based on the <br />percentage of the Services satisfactorily completed. The total amount to be paid for each task is <br />set forth in Attachment B. The total compensation for the Services under this agreement shall <br />not exceed $81,580. PTI will provide to Client monthly invoices which shall be due and payable <br />thiliy calendar days after the invoice date. Invoices not paid within thirty days will accrue <br />interest until paid at a rate of 1 % per month. <br /> <br />3. Expenses. Client shall reimburse PTI for expenses incurred, including travel, <br />accommodations, meals, incidentals, and deliverable production expenses associated with this <br />contract. PTI will bill expenses as separate line items on each monthly invoice. Expenses will <br />be billed with a markup of 1.5%, reflecting the current amount of the Washington State Business <br />and Occupational Tax on gross revenues that PTI is required to pay. Total compensation payable <br />to PTI for expenses shall not exceed $14,500, which includes the assumption of 12 round-trip <br />airfares at an average of $400 each. In the event that increases in airfares and/or the number of <br />round-trips required makes it likely that this expense cap will be exceeded, PTI and the Client <br />will negotiate a mutually acceptable change to this clause of the contract. <br /> <br />4. Limitation of Scope. The Statement of Work fully represents all services to be provided <br />hereunder. Any changes in the Statement of Work (Attachment A), the payment per task <br />(Attachment B), or the expense reimbursement terms will be mutually negotiated between PTI <br />and the Client, and will be agreed to in writing. <br /> <br />5. Indemnification. To the extent of their liability under applicable law, Client and PTI <br />shall each protect, indemnify and save the other harmless from and against any damage, cost, or <br />liability, including reasonable attorney fees, resulting from claim for any or all injuries to persons <br />or damage to property arising directly or indirectly from their respective intentional, willful, or <br />negligent acts or omissions, or those of their respective officers, employees, agents, or <br />subcontractors. <br /> <br />6. Acknowledgements; Rights Clause. PTI expressly acknowledges and warrants that a) it <br />performs consulting services of the nature described in this Agreement in PTI's normal and <br />customary course of business, b) the Client, compared to PTI, is relatively unfamiliar with the <br />types of services described in this Agreement, and c) the Client, in executing this Agreement, <br />relies upon the Vendor's superior knowledge of these types of services. PTI reserves all right, <br /> <br />C:\TEMP\PTI-UTILITY BILLING RFP SERVICES.DOC <br /> <br />1 <br />