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HomeMy Public PortalAboutTHE NETWORK, INC - Fraud Hotline ServicesReport Line'4� Hotline Services from The Network a proposal for City of Carson, CA presented by Pedro E. Alvarado Sales Representative IV. V. Table of Contents ReportLine Proposal ReportLine Program Overview ................................................ ..............................4 The ReportLine Advantage ...................................................... ..............................5 ReportLine Hotline Overview ................................................... ..............................6 A. Identify and Respond to Workplace Issues ................. ............................... 6 Technology Assisted In -Depth Interview ............................................... ..............................6 Rapid Dissemination and Follow Up .................................................... ............................... 6 Comprehensive Incident and Summary Reports ................................. ............................... 6 End -to -End Case Management ............................................................. ..............................7 ReportLine Specifications ....................................................... ..............................8 A. In -Depth Interview ........................................................ ..............................8 1. Accessing the Hotline ...................................................................... ..............................8 2. Greeting ........................................................................................... ..............................8 3. Company /Location /Employee Information ....................................... ..............................8 4. Caller Briefing ................................................................................... ..............................9 5. Caller Identification Information ....................................................... ..............................9 6. Incident Documentation ................................................................... ..............................9 7. Incident Coding ............................................................................... .............................10 8. Technology Assisted Interview ....................................................... .............................11 9. Automated Interview Analysis ......................................................... .............................11 10. Real Time Quality Assurance ......................................................... .............................12 11. Next Step Instructions /Closing Statement ...................................... .............................12 12.The Incident Report ........................................................................ .............................12 13.Quality Assurance ........................................................................... .............................13 B. Rapid Dissemination and Follow Up ......................... ............................... 13 1. Standard Incident Report Dissemination ........................................ .............................13 2. Escalation ........................................................................................ .............................13 3. Callback Process ............................................................................ .............................14 C. Case Management ( Optional) ................................... ............................... 15 D. Direct Access to the Link2 System ( Optional) ........... ............................... 17 1. Accessing the System ..................................................................... .............................17 2. User Training ................................................................................... .............................17 E. Web Reporting System ............................................. ............................... 17 F. Comprehensive Summary Reports ........................... ............................... 18 1. Online Access ................................................................................. .............................18 2. Summary Reports ........................................................................... .............................18 Education & Awareness Overview* ........................................ .............................19 Step1: Implementation ........................................................................ .............................19 Step 2: Ongoing Communication ......................................................... .............................19 ReportLine Program Page 2 City of Carson, CA December 30, 2004 VI. ReportLine Program Budget ................................................... .............................20 VII. ReportLine Program Agreement & Terms ............................. .............................21 VIII. ReportLine Program Timeline ................................................ .............................26 ReportLine Program Page 3 City of Carson, CA December 30, 2004 11 1111 1111 1111y111ni1­rfr • • 1`11,111 • ! Reduce Loss from Illegal and Unethical Activities with Employee Feedback and Communication The ReportLine Program features superior hotline service engineered to collect actionable feedback from employees on issues that could damage your company. It also includes compelling communications designed to secure employee involvement in protecting your company. Our comprehensive approach enables you to: Provide a Risk -Free Way to Voice Concerns. An objective third -party reporting option, available 24 hours a day, 7 days a week, increases the likelihood that employees will report issues to you instead of seeking external intervention. Improve Compliance with Laws, Regulations and Company Standards. Implementing a reporting system like a hotline helps your company comply with laws such as the Sarbanes -Oxley Act, Federal Sentencing Guidelines and Canadian MI 52 -110. It demonstrates your commitment to good governance to your stockholders, employees, customers and vendors. Identify Serious Issues Early. The hotline serves as an early warning system, allowing you to respond with appropriate corrective measures and identify trends and "hot spots ". Prevent Unacceptable Behavior. The hotline and communication materials combined act as a deterrent, educating your employees on vital issues and motivating them to take an active role in prevention. Reduce Liability and Demonstrate Due Diligence. Having an effective system in place for employees to report misconduct can dramatically reduce your exposure to liability, potential fines and negative publicity. Reduce Loss from Misconduct. The most common way to detect illegal activity is through tips from employees, customers, vendors and anonymous sources. Utilizing a well - publicized hotline to collect this feedback can cut losses by 50% per scheme, according to the Association of Certified Fraud Examiners. ReportLine Program Page 4 City of Carson, CA December 30, 2004 i II. The ReportLine Advantage Experience — ReportLine is a service of The Network. More than 20 years ago, The Network pioneered the anonymous hotline using a comprehensive approach that is still our company's core business today. Optimal Mix of People and Technology — Our unique interview process leverages the strengths of people and technology to improve both the accuracy and the completeness of the information you receive. Highly trained, experienced Interview Specialists use our proprietary Link2 system to conduct a thorough, automated interview that dynamically adapts to the issues identified in each call. Advanced Call Center —The Network operates a technologically advanced Call Center ensuring the most rapid and efficient intake and dissemination of information available today. Extensive Screening & Training — With our rigorous hiring processes and ongoing- targeted training, we deliver the highest level of reliability, efficiency and accuracy. Comprehensive Approach — Our comprehensive approach involves educating employees on company standards and encouraging feedback. This approach has proven to deliver substantial benefits to employers, employees and stakeholders. ReportLine Program Page 5 City of Carson, CA December 30, 2004 III. ReportLine Hotline Overview A. Identify and Respond to Workplace Issues A 2417 confidential hotline, combining exceptional personnel with the most advanced systems available. The Network's ReportLine is a powerful, 24/7 hotline service that features a technologically advanced call center staffed by the most experienced Interview Specialists in the industry. These professionals utilize The Network's award - winning Link2 system to conduct detailed interviews and generate actionable Incident Reports. Technology Assisted In -Depth Interview ■ Callers access the hotline, both domestically and internationally, 24 -hours a day. ■ A highly trained Interview Specialist conducts a thorough, 50- point interview, documenting all the details in an Incident Report. ■ During the interview, the Link2 system suggests questions based on the type of issue being reported, making each interview unique. ■ An Incident Code is assigned based on the type of issue reported, which triggers additional incident - specific questions and guidelines, to ensure the completeness of your information. ■ The Link2 system performs real -time quality assurance checks to ensure the Incident Report is accurate and complete. Finally, our dedicated Quality Assurance Team monitors the quality and clarity of Incident Reports. Rapid Dissemination and Follow Up The Link2 system automatically disseminates the Incident Report within minutes to your designated contacts via email. Incident Reports requiring immediate attention are escalated. Our Escalation Team immediately begins calling your designated emergency contacts to relay information. Our callback process allows you to ask additional questions of anonymous callers. Comprehensive Incident and Summary Reports The Incident Report is well organized, allowing you to quickly assess the incident. Incident Report data is also available through the Case Management Module. ReportLine Program Page 6 City of Carson, CA December 30, 2004 Each month you receive valuable reports that help you analyze hotline activity, recognize trends, and identify "hot spots ", document due diligence, identify corrective actions and develop future communications, policies and training programs. These reports are also available on -line. End -to -End Case Management ■ From initial notification of a complaint through its final resolution, you can document activities in a convenient, centralized system that helps you ensure complaints are resolved appropriately. ■ You can search for reports, add information, assign cases for investigation and review case status. ■ The system automatically creates a detailed activity log that provides compliance documentation and offers real -time reporting to help you manage your workload. • You can review performance through standard management reports, ad -hoc reports and real -time data queries. • The system offers a two - tiered approach with Case Managers and Investigators who can submit follow -up questions for anonymous callers while creating a seamless workflow. ReportLine Program Page 7 City of Carson, CA December 30, 2004 IV. ReportLine Specifications A. In -Depth Interview Utilizing our advanced, Link2 system, a highly trained, experienced Interview Specialist conducts a thorough interview documenting information in an organized, actionable Incident Report. 1. Accessing the Hotline Your employees call The Network's toll -free number, 1- 877 -888- 0002, with 24/7 access throughout the 50 United States, Canada, Puerto Rico and the U.S. Virgin Islands. Your customers, shareholders and /or other constituencies utilize the same phone number listed above. English and Spanish speaking Interview Specialists are always available at The Network. Interview Specialists have access to translation services in more than 150 languages, 24 hours a day. 2. Greeting a. Callers immediately receive a pre- recorded greeting: "Thank you for calling, For English, please press 1 now." (Recorded in English) "For Spanish, please press 2 now." (Recorded in Spanish). "The Network's Ethics & Compliance Hotline is a confidential, third -party option for reporting illegal and unethical activities. We cannot provide advice or offer opinions on workplace issues. Please remain on the line. All calls are answered in the order they are received." b. Calls are automatically routed to the best Interview Specialist with the necessary skills to take the call. c. Callers are greeted in the following manner: `Thank you for calling the Ethics & Compliance Hotline. This is [Interview Specialist's name]. Are you calling regarding a previous report or do you wish to file a new report ?" d. If the caller is filing a new report, the Interview Specialist asks: "May I have the name of the company you are calling in reference to ?" 3. Company /Location /Employee Information At the outset of each call, the Interview Specialist documents the caller's company name and detailed location information by ReportLine Program Page 8 City of Carson, CA December 30, 2004 referencing a location database provided in The Network's standard format (Excel) by City of Carson, CA. Next, the Interview Specialist checks for any special instructions in the Notes section of the greeting prior to taking a report. This aspect of our interview process enables you to tailor the call flow to meet any special needs you may have or refer issues back to the company. 4. Caller Briefing The Interview Specialist explains to the caller what to expect during the call: "Before we begin, I want you to know that l am going to ask you a series of questions to help me understand your concern. For instance, I'll need to know who was involved, what occurred and when it happened. This interview can take 10 -15 minutes or more. Let's get started." 5. Caller Identification Information a. The Interview Specialist then attempts to identify the caller: "May I have your first name or do you wish to remain anonymous ?" b. If the caller chooses to identify him /herself, the following information is collected: • Caller's first and last names • Caller's relationship to employer (i.e. vendor, employee, etc.) • Caller's title • Best time to contact the caller • Caller's phone number • Caller's email address c. The Interview Specialist asks all callers how they learned about the hotline as a measure of communications effectiveness. 6. Incident Documentation a. The Link2 system allows the Interview Specialist to focus on understanding the caller's concern, while keeping the interview and documentation of details on track. For instance, the Link2 system ensures that all parties mentioned in the call are clearly identified and their roles in the incident are understandable. Among the information captured: • Identification of persons involved and their title(s) • When the issue occurred ReportLine Program Page 9 City of Carson, CA December 30, 2004 • Where the issue occurred • Details of how the issue occurred • How long it has been occurring • How often it has been occurring • How caller knows about this • If there is documentation that would help the company's investigation • Others who have knowledge of the issue • If a supervisor has already been notified of the issue • What steps, if any, have already been taken to address the issue b. Interview Specialists may also add observations to the report for your consideration. This information is not part of the narrative provided by the caller, but it may describe the caller's demeanor and provide valuable insight. For example: "caller was uncooperative, caller's speech was slurred, caller was very angry." 7. Incident Coding As part of the incident documentation, the Interview Specialist assigns an Incident Code based on the primary issue reported by the caller. To ensure accurate and consistent use of Incident Codes, the Link2 system displays a definition and examples for each of the codes. Interview Specialists also receive extensive training on proper application of Incident Codes. ReportLine's 24 standard Incident Codes: • Accounting /Audit Irregularities • Conflicts of Interest ■ Customer Relations ■ Discrimination • Employee Relations • Falsification of Company Records • Fraud ■ Fraudulent Insurance Claims • Improper Loans to Executives • Insider Trading ReportLine Program Page 10 City of Carson, CA December 30, 2004 • Kickbacks • Policy Issues • Product Quality Concern • Release of Proprietary Information • Retaliation against Whistleblowers • Safety Issues and Sanitation • Sexual Harassment • Substance Abuse • Theft of Cash • Theft of Goods /Services • Theft of Time • Unauthorized Discounts • Wage /Hour Issues • Workplace Violence/Threats If a call uncovers two or more distinct issues, the Interview Specialist will produce companion reports. All the relevant information already provided by the caller is pre - filled in the companion report allowing the Interview Specialist to focus on documenting the details of each issue. 8. Technology Assisted Interview Additional system - generated questions and instructions are triggered by the Incident Code, helping the Interview Specialist dig deeper into the unique aspects of a particular issue and ensuring all relevant information is captured. For example: Insider Trading: "Describe the insider information, how they received it, and the amount of illegal trading or benefit. How did individual witness the issue, what was the documentation, when did it occur ?" Theft of Goods: "Describe the stolen goods (value, size, color) and the financial impact on the company." These questions and instructions also help the Interview Specialist validate the Incident Code assigned to the report based on their relevance to the caller's concern. 9. Automated Interview Analysis The Link2 system actively analyzes the report and identifies factors or combinations of factors that require additional information. For instance: ReportLine Program Page 11 City of Carson, CA December 30, 2004 Victim Identification Prompt: If an anonymous caller is the victim and there are no witnesses or evidence to corroborate their report, the Link2 system prompts the Interview Specialist to encourage the caller to give their name and contact information so that the incident can be investigated. "In order for the company to investigate an issue in which you're the victim, they need the ability to get in touch with you. Are you sure you do not wish to provide your name at this time ?" 10. Real Time Quality Assurance During the interview, the Link2 system monitors information intake. Before the call is concluded, the Link2 system issues a warning regarding missing information and potential errors for the Interview Specialist to review with the caller. The report cannot be completed until every critical system data requirement is met. To produce the highest quality reports, The Network continually reviews and updates Integrity Check criteria based on our experience and feedback from our clients. 11. Next Step Instructions /Closing Statement a. The Interview Specialist confirms the caller is satisfied that all the information they called to report has been conveyed. b. Callers who give their names are provided a report number and asked to call back if they have information they wish to add to their report. The Interview Specialist concludes the call by saying: "We appreciate your call. Since you have provided your name and contact information, your company now has the option to contact you should they have questions or require additional information. Allow me to give you a report number as a record of your call today, your report number is (XXXXXJ. You will need this number if you call back to add information to this report." c. Anonymous callers are given a report number to reference in subsequent calls and are asked to call back two weeks from the date of their call. d. The Interview Specialist concludes the call by saying: "We appreciate your call. Allow me to give you a report number. Do you have a pen? Your report number is WXXXJ. Please call us back on [Date] with the report number in order to see if the company has any additional questions to ask." 12.The Incident Report The information gathered during the call is organized in a detailed Incident Report. ReportLine Program Page 12 City of Carson, CA December 30, 2004 13. Quality Assurance In addition to the Automated Interview Analysis and the Automated Integrity Check that the Link2 system performs during the call, The ReportLine's dedicated Quality Assurance team also evaluates reports to ensure quality standards are met. Reports are subjected to manual Quality Assurance based on the complexity of customization, Interview Specialist quality scores /tenure, incident type, etc. A combination of automated and manual reviews is utilized to ensure the quality and clarity of every report. The rapid delivery of thorough, actionable Incident Reports for your immediate response. 1. Standard Incident Report Dissemination a. Incident Reports are disseminated within an average of four hours. All reports are guaranteed dissemination within one business day via email to up to three designated recipients. b. Our dedicated Dissemination Team monitors all dissemination activity, ensuring the successful transmission of all Incident Reports. 2. Escalation a. We immediately call your designated personnel if we receive an Incident Report that meets the following criteria: Threat or harm to employees, customers, or operations Any significant incident projected to reoccur within 24 hours b. If one of the following ten Incident Codes is assigned to a report, the Interview Specialist is automatically prompted to ask if the incident will happen again within the next 24 hours. If the caller believes it will, then escalation is automatically triggered. Those Incident Codes are: • Falsification of Company Records • Fraud • Fraudulent Insurance Claims • Kickbacks • Release of Proprietary Information • Substance Abuse • Theft of Cash ReportLine Program Page 13 City of Carson, CA December 30, 2004 Theft of Goods /Services Product Quality Concern Workplace Violence/Threats c. The Interview Specialist or our Quality Assurance Team can also override the Link2 system and designate a report for escalation at their discretion. These reports are checked by the Escalation Team prior to escalating. d. Once a report designated for escalation is complete, it is automatically relayed to our dedicated Escalation Team for immediate notification of the designated person. The Link2 system provides the Escalation Team with the list of at best three emergency contacts that you provide, which contains the contacts' telephone numbers (pager, work, cellular and home), where they can be reached during business hours, holidays and weekends, and the order in which they should be called. The Escalation Team uses the following escalation process: ■ Calls are made to the first contact within an average of 15 minutes of completion of the report by calling pager, work, cellular and home numbers. ■ If the first contact cannot be reached, a message is left and the same procedure is followed for the two additional contacts. ■ Once a contact is reached, a summary of the report can be read, emailed or faxed and the escalation of the Incident Report is complete. ■ Escalated Incident Reports are also disseminated via email to your designated contacts through the normal dissemination process. (On the Incident Report, a priority level of "1" designates a high priority report that has been escalated.) 3. Callback Process a. Anonymous callers are asked to call back on a specific date, giving you an opportunity to ask additional questions during the investigation and resolution of the issue. Any caller can call back at any time with the report number and add information to the report. b. Your additional questions can be submitted online through the Case Management Module or via E -mail before the scheduled callback. Questions submitted on -line are added to the Link2 ReportLine Program Page 14 City of Carson, CA December 30, 2004 system in real -time. Questions received via email will be added to the Link2 system within one business day. c. Email Process: You can submit callback questions by emailing them to ReportLine at networkcallbacks(a_tnwinc.com in the following format: • Subject Line: Question for the caller • Your company name • Your contact first and last name • Original Incident Report number • Callback question(s) written exactly as they should be asked to the caller (limited to 2,000 characters) d. If the anonymous caller calls back as instructed, the Interview Specialist will ask the additional question(s) and document the response(s) as an addendum to the original Incident Report. The updated Incident Report will then be disseminated to your original designated contacts via email marked "Callbacks ". e. If the anonymous caller calls back as instructed, and there are no additional questions from your company, the Interview Specialist will thank the caller and notify him /her that there are no additional questions. No further callback arrangements are made in this case, although the caller is invited to call back if there is ever any additional information to add to the report. If any caller calls back to provide additional information, the Interview Specialist will document the information as an addendum to the original Incident Report. The updated Incident Report will then be disseminated to your original contact via email "Callbacks ". C. Case Management (Optional) Document the Investigation and Resolution of Allegations The Link2 system's Case Management module centralizes all components of your incident reporting system, from notification through investigation and resolution. The system helps you manage workflow and provides you with a historical record of your investigation. Case Management is web - based, so case managers and investigators can easily access the system and document their activity from virtually anywhere. You determine system and Incident Report access by user type (Case Manager or Investigator), company location, and /or incident ReportLine Program Page 15 City of Carson, CA December 30, 2004 type. Users are alerted by email when an incident requires their attention, and then they log in to the Case Management module. The two -tier hierarchy ensures that only those authorized to assign and investigate reports have access to that data. Case Managers have access to all of the incidents for the locations and /or incident types for which they have been assigned access rights. They can: • Search /sort for specific incident information • View incident report data • Assign an Investigator, or transfer a case to another Investigator • Approve /close a case • Send a case back to an Investigator • Transfer approval authority to another Manager • Document activities in the Case Log • Follow up with anonymous callers • Access and view monthly management reports and request ad hoc reports by setting custom date ranges Investigators have access only to the incidents assigned to them. They can: ■ Search /sort for specific incident information • View incident report data • Document activities in the Case Log • Transfer an assigned case to another Investigator, when authorized to do so • Document resolution (outcome, disposition, reward) recommendations • Send a case to the Approval Authority for closure ■ Follow up with anonymous callers Actions taken by Case Managers and Investigators during the incident investigation and resolution process are automatically documented in the Case Log and tagged with a date, time and user ID stamp. Actions include: ■ Entering new information into the Case Log • Assigning an Investigator • Transferring a case to another Investigator ReportLine Program Page 16 City of Carson, CA December 30, 2004 • Transferring Approval Authority • Sending a case for approval • Sending a case back to an Investigator for additional work • Approving /Closing a case D. Direct Access to the Link2 System (Optional) Enter reports from your desk into a centralized database of ethics complaints You can enter reports based on the face -to -face interviews that you conduct directly into the Link2 system so that all complaints are documented in one centralized database for ease of reporting and consistency of documentation. 1. Accessing the System Your designated users will be given rights in the system to add reports, so that all your ethics allegations reside within the Link2 system database. These users will enter data following the same process as Interview Specialists. 2. User Training Up to three users entering the reports will receive a user's guide electronically in the form of a Word document. E. Web Reporting System Anonymous reports can be submitted via the web In addition to calling the hotline or participating in an internal reporting process, reports can be anonymously submitted via our secure, web -based self - reporting system. The format follows the flow of ReportLine's highly successful telephonic interview process, requiring the critical information that you will need to investigate. After submitting a report, the participant receives a confirmation number as a receipt. Web Reports are: • Documented in the Link2 system • Disseminated or escalated like other Incident Reports • Included in monthly summary reporting • Accessible through The Link2 system's Case Management module ReportLine Program Page 17 City of Carson, CA December 30, 2004 F. Comprehensive Summary Reports Valuable reports to analyze incidents and hotline activity, recognize trends and "hot spots ", document due diligence, identify corrective actions and aid in the development of future communications, policies and training programs. 1. Online Access Secure, online access to report data is via the web. A web based report system offers many features including: Review and print report data from anywhere via the Internet. Search, view and print report data based on a variety of criteria including date range, DBA, location, etc. Up to 3 company representatives may access Link2. 2. Summary Reports a. Each month your designated contacts receive valuable Summary Reports via email as a PDF attachment. These reports help you analyze hotline activity, recognize trends and "hot spots" in your organization, document due diligence and identify corrective actions and ongoing communication needs. b. Summary Reports include: Executive Summary Report: This report shows the total incidents for the month and year -to -date tabulated by type and frequency, the percentage of issues that were previously reported to a manager and an issue type summary showing the number of calls per Incident Code. As a means of trend analysis, these percentages are also reported using ReportLine's entire client base ( "Market "). The top ten issues are also shown in a graph. Activity Report: This report details all call activity for the month by location and by type of concern reported, including call location (city and state), report number and date, if the incident was previously reported to management and a brief summary of the incident (Incident Code, caller name, and name of the reported individual). Hot Spot Report: This report shows locations that have reached or exceeded your designated number of Incident Reports for the month. City of Carson, CA designates a number of reports per location to consider the location a "hot spot." This report will show all those locations within the month that reached this number. For City of Carson, CA, this number is [Hot Spot Threshold Number]. ReportLine Program Page 18 City of Carson, CA December 30, 2004 V. Education & Awareness Overview* Reach the Unique Workplace Audience Materials for program support facilitate two -way communication by introducing the program to employees, educating them on vital issues and encouraging participation. Your employees are your company's strongest defense against illegal and unethical activity. Providing a hotline helps your company identify and respond to potentially damaging issues. The most effective programs to control misconduct solicit employee involvement and educate them on their role in prevention and detection. The Network provides all the tools you need for a comprehensive feedback and communication program. Step 1: Implementation The Network provides implementation tools that ensure successful launch of your hotline: Employee Kits — Employees receive materials that describe the hotline, its purpose and how to report illegal or unethical behavior. Location Awareness Centers — High- impact materials like posters and letters from management posted prominently in employee common areas help promote the message of the program. The Network can provide sturdy acrylic displays to help create a unified message center. Step 2: Ongoing Communication You can sustain the momentum of your program by periodically updating materials to maintain top -of -mind awareness of the hotline program. Posters in high- traffic areas educate employees on important workplace issues and preventive techniques. New materials draw attention to the issues, reminding employees of the program and the company's commitment to workplace ethics. The Network's in -house agency can support your communication campaign by creating employee mailings, payroll staffers, wallet cards and web pages for your intranet, creating a well- rounded communications effort that supports the hotline and helps you prove your due - diligence regarding the anonymous complaint process. * - Education & Awareness materials are not included in the Annual Fee. ReportLine Program Page 19 City of Carson, CA December 30, 2004 VQ, �����o�U ^�������ra�� ������� --n- ---' Program Budget ReportLinm Service Budget One-timeSetUpFee ------------------------------.. $1.0O0.0O Amnuo|Fea ............................................................................................................ $2.187.5U includes calls that result inan Incident Report. The fee for calls above the limit is $35 per call for calls resulting in an Incident Report and 818 per call for all other calls (general inquiry calls, referral calls, etc).] Case Management (Optional) Budget CaunManagens ----------------.. RapurtLnaPmgram City of Carson, CA --$ 850.00/User --$ 350.00/User Page 20 December 30, 2004 VI1. ReportLine Program Agreement & Terms This Agreement for Program Services (the "Agreement "), dated December 30, 2004, is between The Network, Inc. ( "Provider "), located at 333 Research Court, Norcross, GA 30092, and City of Carson, CA ( "Client "), located at 701 East Carson Street, Carson, CA 90745. A. Services The parties agree that Provider will provide Hotline Program Services (the "Services ") for Client pursuant to the terms of the description of services and fees shown herein. B. Use of Hotline ReportLine is intended to be offered only as an option for employees, former employees and other program participants to report any illegal and unethical activity that causes loss or harm to a company, its employees or customers. It is intended to be positioned as an option for reporting these incidents to an independent third party, should an individual feel uncomfortable with reporting to those within the company. Consequently, in order to maintain the quality of service, Client cannot describe or use ReportLine for other purposes. Client must obtain written permission to publish the ReportLine number and any other information relating to its description and /or purpose prior to its publication. It is the Client's responsibility to enforce this policy throughout the company. Should the Client violate this policy, The Network retains the right to re- structure service fees or terminate service. C. Effective Date and Term The effective date of this Agreement is TBD. Provider will perform the Services from the effective date through 12 months (the "Term ") and shall automatically renew for successive twelve -month periods unless earlier terminated in accordance with this agreement. D. Cancellation This Agreement may be canceled by either party (a) in the event of a "Default" after the expiration of notice and cure periods; or (b) by either party without cause upon forty -five (45) days' advance notice to the other party. Following such expiration or cancellation, Client will immediately return to Provider or destroy all materials in its possession, custody or control, which promote or describe the Services. E. Confidential Information Each party will maintain the confidentiality of "Proprietary Information" except as necessary to carry out the purposes of this Agreement. "Proprietary Information" means any information (a) identifying a hotline ReportLine Program Page 21 City of Carson, CA December 30, 2004 caller or the subject of his /her call; (b) contained in a Client - provided database used in processing calls; (c) Provider's toll -free number; (d) related to the Services which is not otherwise available to the public, or (e) identified as confidential by Provider or Client. F. Intellectual Property Each party mutually reserves, and agrees to recognize, respect and preserve any and all intellectual property rights the other party has or may be entitled to claim in any Created Works. "Created Works" are defined as all works in any medium which are authored, co- authored, developed, refined, completed, obtained, owned or possessed by the party, including all copyrights, trademarks, service marks, and patents which apply thereto, and any derivative work based thereon, except for any existing rights in works provided to one party by the other. G. Data Retention Policy All Incident Report data is retained for a period of 12 months from the original date of the Incident Report. Case Management module data is retained for 36 months from the original date of the Incident Report. With the exception of selected data, after this period all Incident Report data is purged. Selected Incident Report data is then archived for billing and statistical reporting purposes including: Report Number, Date of Report, Type of Call, Company Name, City, State, Zip Code, Client ID Number, Incident Code, and Date(s) of Callback(s). Once report data has been archived, it cannot be restored to its original form. H. Default Any of the following will constitute a "Default" under this Agreement: a. A breach of a material covenant of this Agreement which continues without cure for a thirty (30) day period after either party's receipt of written notice thereof; or b. The filing of a petition for bankruptcy by a party, the insolvency of a party, or the filing of an involuntary petition for bankruptcy against a party shall entitle the other party, upon twenty -four (24) hours written notice, to terminate this Agreement; or c. Client's failure to perform its payment obligation. d. The parties agree that damages for breach of this Agreement will be limited to the actual damages incurred as a result of the breach and the breaching party will not be liable for any special, punitive, incidental or consequential damages arising out of or related to any breach of this Agreement. ReportLine Program Page 22 City of Carson, CA December 30, 2004 I. Indemnity Each party (the "Indemnitor ") will indemnify and hold harmless the other party (the "Indemnitee ") from and against any and all claims, damages, demands, actions, losses, costs and expenses, including attorney's fees reasonably and actually incurred ( "Claims ") arising out of or related to the performance or non - performance by the Indemnitor (except for Claims caused by the negligence or willful misconduct of the Indemnitee), or the Indemnitor's material breach of its obligations under this Agreement. J. Disclaimer Provider will utilize good faith efforts to perform the Services, although Provider will not be liable for the mistakes or errors in the performance of the Services unless they are caused by the negligence or willful misconduct of Provider. Provider will not be responsible for the verification or review of the accuracy, relevance, or legality of information contained in reports of hotline calls provided to Client and Client waives any claim related thereto. K. Notice Any notice required or allowed under this Agreement will be effective when received in writing at the following address. Designated location for notice: The Network, Inc. 333 Research Court Norcross, GA 30092 Attn: Mr. Jim Ganley City of Carson, CA 701 East Carson Street Carson, CA 90745 Attn: Ms. Kelly Guzman L. Payments Budget is valid for 90 days from date of proposal. Payments are due net 30 upon receipt of invoices. Total Budget will be invoiced upon proposal acceptance. The Annual Renewal Package Fee, including hotline service and Case Management Module, will be invoiced annually 60 days prior to the renewal date. M. Collection and Disputes Client agrees to pay Provider according to the terms on the invoices. Amounts not paid within thirty (30) days after the date of invoice shall be considered past due. On past due accounts, Client agrees to pay a finance charge on any unpaid balance in the amount of 1.5% per month. ReportLine Program Page 23 City of Carson, CA December 30, 2004 Provider will be entitled to recover any cost of collection, including reasonable attorney fees. N. Miscellaneous This Agreement is governed by the laws of the State of Georgia. A specific waiver by either party of any of the terms and conditions of this Agreement shall not constitute a waiver of the same or other provisions of the Agreement at any time in the future. Any approvals required by either party to this Agreement shall not be unreasonably withheld. Neither party shall be responsible for any damage or delay which is caused by an Act of God, government regulation, disaster, fire, flood, war, or civil disorder which is beyond the control of either of the parties to this Agreement, and which makes it illegal or impossible to perform the Agreement or any of its terms. O. Terms The following is important information either provided by Client or assumed by Provider in order to develop a budget and prepare for efficient implementation of the proposed service. Any and an revisions, additions or deletions to these terms may result in a revised budget and /or implementation timeline, ReportLine Service Terms: The number of employees calling Provider from North America (U.S., Canada, Puerto Rico and U.S. Virgin Islands) is 825. Provider's ability to translate calls is subject to Tele- Interpreters' translator availability. For more accurate documentation of a caller's location, applicable location database information will be provided via Excel and will be updated monthly in the same format. Program period: TBD — 12 months. Programming other than the specifications outlined herein is billable at $150.00 per hour. ReportLine Program Page 24 City of Carson, CA December 30, 2004 City of Carson, CA DATE:— 1/10/05 THE NETWORK, INC. DATE: BY: area AVIla I TITLE: City reasurer jameS A. Malone ReportLine Program Page 25 City of Carson, CA December 30, 2004 VII1. ReportLine Program Timeline Due Date Event/Task Description Who TBD — at least 2 -4 Signed agreement to The Network City of Carson, weeks prior to CA start date TBD — at least 2 Dissemination, contact and other City of Carson, weeks prior to information for program set up to The CA program start date Network TBD — at least 1 Location Database to The Network City of Carson, week prior to CA program start date TBD — always on a Program Live (start) Date The Network Friday TBD — First month First Month's Management Summary The Network after program start Reports date (this is a calendar month, not a program month) TBD — as needed, Escalation Information Updates City of Carson, at least 5 business CA & The days notice Network required TBD — as needed, Dissemination and Location Database City of Carson, at least 5 business Information Changes CA & The days notice Network required TBD — as needed, Location Database Information Updates City of Carson, at least 24 hours (standard only) CA & The (business day) Network notice required 45 days prior to Annual Program Evaluation and Renewal City of Carson, program year -end CA & The renewal date Network ReportLine Program Page 26 City of Carson, CA December 30, 2004