HomeMy WebLinkAboutAgenda Report - April 21, 2021 C-16AGENDA NTEM C1111b
JQ CITY OF LODI
COUNCIL COMMUNICATION
IM
AGENDA TITLE: Adopt Resolution Authorizing Chief of Police to Execute User License Agreement
for Online Weapons Permit Applications with Permitium, LLC of Pineville, NC
MEETING DATE: April 21, 2021
PREPARED BY:
Chief of Police
RECOMMENDED ACTION: Adopt Resolution Authorizing Chief of Police to execute user license
agreement for online weapons permit applications with Permitium,
LLC of Pineville, NC.
BACKGROUND INFORMATION: In response to the Covid-19 pandemic City buildings are closed to
the public including the police lobby. Although the lobby and police
department have been closed to the community we continue to
receive and process requests for carrying concealed weapon (CCW) permits through the Chief's office.
Now that the process is limited to a no -contact means of distribution it has been found to be outdated and
cumbersome.
The department ascertained that the San Joaquin County Sheriff's Office is using an online permit
process that is facilitated by Permitium. After speaking with Sheriff's Department staff, Lodi Police
Department representatives attended a virtual tutorial on the Permitium program. It was learned that this
type of permit processing will streamline the process and is quickly becoming the standard in law
enforcement CCW permit processing.
Permitium provides the Lodi Police Department with a private permit portal that will include all of the
permit application steps including; application, document submittal, and payment processing. All of the
submitted information will come to the Chiefs office organized; accurate, review ready, and easy to make
a determination on eligibility. Permitium does not make any eligibility determinations and the physical
CCW permit card will continue to be issued by the Chief of Police. This program will simply collect and
organize the application and fees.
Department representatives have confirmed that this is the only CCW permit processing vendor. There
is no cost to the department for this program. A separate convenience fee of $4.00 per permit will be
collected by Permitium as compensation. We will link this portal to our City of Lodi webpage for easy
access to the public.
FISCAL IMPACT: This is a revenue generating contract.
FUNDING AVAILABLE: Not applicable.
Sierra Brucia
Chief of Police
rq%Zl W130,000.291VA5111
USER LICENSE AGREEMENT FOR ONLINE WEAPONS PERMIT APPLICA T 1 ON
This user license agreement for an online weapons permit application (the "User License
Agreement") is made and entered into this —day of , by and between the Lodi Police
Department (the "CLIENT") and Permitium, LLC ("Permitium"), a corporation in good standing
authorized to do business in the State of North Carolina with its principal place of business at
10617 Southern Loop Blvd. Pineville, NC 28134.
For and in consideration of the mutual promises set forth in the User License Agreement, the
adequacy of which is hereby expressly acknowledged, the parties do mutually agree as follows:
1. Basic Obligations of Permitium. Permitium hereby agrees to provide the services
described in the attached Statement of Work (attached hereto as Exhibit 1) in accordance
with the terms and conditions of this User License Agreement as requested in writing by
the CLIENT.
2. Term. Contract will be effective from December 2, 2020 through December 31, 2021.
This Agreement shall be automatically renewed for successive one (1) year terms unless
either Party provides the other Party with sixty (60) days prior written notice to the end of
the Initial Term or the Renewal Term.
3. Fee Collection and Payment. Permitium will collect online payments and agrees to
deliver the CLIENT a monthly statement by the 25th of each month which will itemized
for every transaction submitted the previous month along with a check or ACH for the
total amount collected less credit card fees listed on Exhibit 1.
4. Termination for Cause. At any time after 30 days of the software deployment, the
CLIENT may terminate this User License Agreement immediately and without prior
notice if Permitium is unable to meet goals and timetables or if the CLIENT is
dissatisfied with the quality of services provided.
5. Insurance. Permitium agrees to maintain a minimum of $6,000,000 in general liability
and other appropriate insurance, as well as Workers Compensation in the required
statutory amount, for all employees participating in the provision of services under this
User License Agreement. Certificates of such insurance shall be furnished by the
Permitium to the CLIENT and shall contain the provision that the CLIENT is given ten
(10) days' written notice of any intent to cancel or terminate by either the Permitium or
the insuring company. Failure to furnish such insurance certificates or maintain such
insurance shall be deemed a material breach and grounds for immediate termination of
this User License Agreement. All Permitium liabilities as defined within this User
License Agreement will be capped at the greater of the compensation received by
Permitium, or the $6,000,000 limit of general liability policy.
6. Taxes. Permitium shall pay all federal, state and FICA taxes for all of its employees
participating in the provision of services under this User License Agreement.
7. Monitoring and Auditing. Permitium shall cooperate with the CLIENT, or with any
other person or agency acting at the direction of the CLIENT, in their efforts to monitor,
audit, or investigate activities related to this User License Agreement. Permitium shall
provide any auditors retained by the CLIENT with access to any records and files related
to the provision of services under this User License Agreement upon reasonable notice.
The CLIENT agrees that its auditors will maintain the confidentiality of any trade secrets
of Permitium that may be accessed during an audit conducted under this User License
Agreement.
8. Confidentiality Information. Permitium agrees that all records, data, personnel records,
and/or other confidential information that come within Permitium' possession in the
course of providing services to the CLIENT under this User License Agreement
(hereinafter, "Confidential Information") shall be subject to the confidentiality and
disclosure provisions of all applicable federal and state statutes and regulations, as well as
any relevant policies of the CLIENT. All data and/or records provided by the CLIENT to
Permitium shall be presumed to be Confidential Information subject to the terms of this
section unless the CLIENT specifically indicates in writing that the requirements of this
section do not apply to a particular document or group of documents.
Permitium agrees to receive and hold Confidential Information, whether transmitted
orally, in writing or in any other form, and whether prepared by a party or its
Representatives, in strict confidence, and to use the Confidential Information solely for
the purpose of facilitating CLIENT's use of Permitium' products and services. Except as
essential to Permitium' obligations to CLIENT, Permitium shall not copy any of the
Confidential Information, nor shall Permitium remove any Confidential Information or
proprietary property or documents from CLIENT premises without written authorization
of the CLIENT. Permitium acknowledges its understanding that any unauthorized
disclosure of Confidential Information may result in penalties and other damages.
9. Security. Permitium represents and warrants that all documents and information
provided to Permitium by or behalf of the CLIENT, including but not limited to
Confidential Records, shall be stored and maintained by Permitium with the utmost care
and in conformity with standards generally accepted in Permitium' industry for the types
of records being stored and maintained. Permitium further represents and warrants that
any online access to the CLIENT's records authorized persons pursuant to this User
License Agreement shall be safe, secure, and password -protected and provided with the
utmost care and in conformity with standards generally accepted in Permitium' industry
for the types of records being stored and maintained, and that no person shall be
permitted to obtain unauthorized access to any of the CLIENT's records. Without
limiting the foregoing, Permitium specifically warrants that:
9.1. All servers, computers, and computer equipment used to provide services
pursuant to this User License Agreement shall be maintained in good working
order in compliance with generally accepted industry standards in light of the
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confidential nature of the documents in question and shall be located in a safe,
controlled, and environmentally stable environment (including moisture and
temperature controls) and adequately protected against fires, hurricanes, flooding,
or similar occurrences;
9.2. Facilities where services are provided shall be secure and access shall be limited
to employees trained in security protocols with a legitimate business need to
access such facilities (with access removed immediately upon termination of
employment) and shall be protected from unauthorized access by commercially
reasonable security systems;
9.3. All websites, FTPs, and any other online electronic system used to provide
services pursuant to this User License Agreement shall be protected from security
breaches by commercially reasonable firewalls and other intrusion detections
systems and antivirus software, which shall be kept updated at all times. Access
shall be limited to those agents and employees of Permitium assigned to the
project and any individuals identified in writing by the CLIENT or CLIENT's
Designee as authorized to obtain access.
9.4. Permitium have technical controls in place that ensure the security, availability
and confidentiality of CLIENT data.
9.5. All information provided to Permitium pursuant to this User License Agreement
shall be encrypted while in transit over an open network.
10. Standard of Care. Notwithstanding anything in this User License Agreement to the
contrary, Permitium represents and warrants that the services provided by Permitium
shall be performed by qualified and skilled individuals in a timely and professional
manner with the utmost care and in conformity with standards generally accepted in
Permitium' industry for the types of services and records governed by this User License
Agreement.
11. Indemnification. Permitium shall indemnify the CLIENT, its agents, and employees,
from and against all damages directly arising out of Permitium's breach of this
Agreement. This provision shall survive the expiration or termination
of this Agreement and remain in full force and effect after such expiration or
termination. Notwithstanding the foregoing Permitium's maximum indemnification will
be limited to the amount of insurance set forth within section 5.
To the extent provided by law, CLIENT shall indemnify Permitium, its agents, and
employees from and against all damages directly arising out of CLIENT's breach of this
Agreement. This provision shall survive the expiration or termination of this Agreement
and remain in full force and effect after such expiration or termination.
12. Relationship of Parties. Permitium shall be an independent User License Agreement of
the CLIENT, and nothing herein shall be construed as creating a partnership or joint
venture; nor shall any employee of Permitium be construed as an employee, agent or
principal of the CLIENT.
13. Compliance with Applicable Laws. Permitium shall comply with all applicable laws
and regulations in providing services under this User License Agreement. Without
limiting the foregoing, Permitium specifically represents that it is aware of and in
compliance with the Immigration Reform and Control Act and that it will collect properly
verified I-9 forms from each employee providing services under this User License
Agreement. Permitium shall not employ any individuals to provide services to the
CLIENT who are not authorized by federal law to work in the United States.
14. Applicable CLIENT Policies. Permitium specifically acknowledges that it will comply
with all applicable CLIENT policies, all of which are publicly available on the CLIENT's
website.
15. Assignment. Neither parry may transfer, assign, or delegate any rights, duties, interest, or
obligations under this Contract to any other person or entity without the other party's
prior written consent. Notwithstanding the foregoing, Permitium may (without the
CLIENT's consent) assign this agreement and all of its rights, duties, interests and
obligations hereunder to any entity into which it merges, has a change in control
representing a conveyance of more than 50% of its ownership interests, or to which it
sells all or substantially all of its assets. Permitium agrees to notify the client within 10
business days of any assignment.
16. User License Agreement Modifications. This User License Agreement may be
amended only by written amendments duly executed by and between the CLIENT and
Permitium.
17. California Law. California law will govern the interpretation and construction of the
User License Agreement. Any litigation arising out of this User License Agreement shall
be filed, if at all, in a court or administrative tribunal located in the State of California.
18. Entire Agreement. This User License Agreement constitutes and expresses the entire
agreement and understanding between the parties concerning the subject matter of this
User License Agreement and supersedes all prior and contemporaneous discussions,
promises, representations, agreements and understandings relative to the subject matter of
this User License Agreement.
19. Severability. If any provision of this User License Agreement shall be declared invalid
or unenforceable, the remainder of the User License Agreement shall continue in full
force and effect.
20. Notices. Any notice or other communication provided for herein as given to a party
hereto shall be in writing, shall refer to this Agreement by parties and date, and shall be
delivered by registered mail, return receipt required, postage prepaid to the person listed
below or his successor.
If to: Permitium
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Permitium, LLC
10617 Southern Loop Blvd.
Pineville, NC 28134
Attn: Matt Solomon
If to CLIENT:
Lodi Police Department
Attn: Heather Kirschenman
215 W. Elm Street
Lodi, CA 95240
21. Authority of Signatories. The persons executing this User License Agreement hereby
represent and warrant that they have full authority and representative capacity to execute
the User License Agreement in the capacities indicated below and this User License
Agreement constitutes the binding obligation of the parties on whose behalf they signed.
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day
and year indicated above.
Lodi Police Department
Printed Name: Chief Sierra Brucia
Signed:
ITS:
DATE:
Approved as to Form:
JANICE D. MAGDICH
City Attorney V
V
PERMETIUM, LLC
Printed Name: Matt Solomon
Signed:
ITS: Managing Partner
DATE:
STATEMENT OF WO — EX141BI T I
Implementation Plan
• Configure the initial instance of the new Permitium solution based on the Client's current
pistol permit process and Permitium' s demonstration site
• Refine the new Permitium solution through an iterative process based on input received
from the Client during the testing phase
• Test the Permitium solution, revise as needed and prepare it for production
• Provide training for the Client as needed
• Provide ongoing support, hosting and management of the Permitium Solution
Implementation Team
Permitium
Support Team
855 -712 -PERM
supportpermitium.com
Client
Executive Sponsor
Project Manager
Data and Security
All data collected in the Client's instance of PermitDirector is the property of the Client.
Permitium does not own and will not distribute data without the written consent of the Client.
All passwords placed within the system are encrypted and not accessible by the Permitium staff.
Cost of Service
Cost for PermitDirector software, implementation services or support — Permitium will charge
$4.00 for all transactions as an embedded fee or
—$4.00 passed on as a convenience fee back to the applicant for each application submitted.
X_ Concealed Weapon Applications
Other Fingerprint Applications
Credit card company fees are passed through to the applicant by Permitium based on our
contract rate. The current rate is $.30 per transaction plus 2.9% of the total transaction. Cash
transactions can be paid at no additional cost at counter.
If Client elects to offer some or all services for free, transaction convenience fees still apply.
A minimum of $250 per month must be maintained in convenience fees collected. If less than
$250 per month is collected through the collection of convenience fees, the difference will be
deducted from the CLIENT'S monthly payment.
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RESOLUTION NO. 2021-106
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CHIEF OF POLICE TO EXECUTE THE USER
LICENSE AGREEMENT FOR ONLINE WEAPONS PERMIT
APPLICATIONS WITH PERMITIUM, LLC, OF PINEVILLE, NORTH CAROLINA
WHEREAS, in response to the Covid-19 pandemic, City buildings, including the Police
lobby, are closed to the public. Although the Police Department lobby has been closed to the
community, the Police Department continues to receive and process requests for carrying
concealed weapon (CCW) permits through the Chief's Office; and
WHEREAS, the department ascertained that the San Joaquin County Sheriff's Office is
using an online permit process that is facilitated by Permitium; and
WHEREAS, Permitium provides the Lodi Police Department with a private permit portal
that will include all of the permit application steps, including application, document submittal,
and payment processing.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the Chief of Police to execute the User License Agreement for Online Weapons
Permit Applications with Permitium, LLC, of Pineville, North Carolina.
Date: April 21, 2021
I hereby certify that Resolution No. 2021-106 was passed and adopted by the Lodi City
Council in a regular meeting held April 21, 2021, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JENNIFER USMIR
City Clerk
2021-106