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HomeMy WebLinkAboutR-2001-142 Software License & Services Agreement w/ Keystone Information Systems, Inc.RESOLUTION NO R-2001-742 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to execute a software license and services agreement with Keystone Information Systems, Inc., in order to license certain financial management software and acquire associated services as a sole source purchase without calling for bids. WHEREAS, Article VI, Section 6 of the City of Yakima Charter and the Yakima Municipal Code Chapter 1.80 generally require that purchases in excess of $25,000 be done by competitive bid, subject to certain exceptions; and WHEREAS, the law recognizes a "sole source purchase" exception from bidding requirements, when due to the uniqueness of the product to be purchased and the fact there is only one source for the product, it would be futile to utilize competitive bidding; and WHEREAS, the City of Yakima currently licenses a Financial Management System (FMS) from Keystone Information Systems, Inc. and operates the FMS on a Prime Computer; and WHEREAS, the Prime Computer utilizes obsolete and unsupported technology thereby making migration of the FMS from the Prime Computer to the City's DEC Alpha computer imperative; and WHEREAS, Keystone Information Systems, Inc. owns the rights to and is the sole marketer of the City's existing FMS software and the upgraded FMS software; and WHEREAS, Keystone Information Systems is willing to provide FMS migration services consisting of upgraded software license, data conversion services, and implementation services in accordance with the terms and conditions of the attached software license agreement, including a purchase price of $53,200; and WHEREAS, the City Council finds it would be futile to call for bids regarding an FMS license upgrade and migration services as the software is offered solely by Keystone Information Systems, Inc.; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize execution of the attached software license and services agreement with Keystone Information Systems, Inc. for the purchase of said FMS license upgrade and migration services, now, therefore, BE IT RESOLVED BY THE CITYCOUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is hereby authorized and directed to execute the attached and incorporated "Agreement for Purchase of Software Licenses and Associated Services" with Keystone Information Services, Inc. in order to license an upgraded FMS and acquire implementation services as a sole source purchase without calling for bids. ADOPTED BY THE CITY COUNCIL this 16th day of October, 2001. ATTEST: 'KalLem., )45 ( City Clerk ry Place, Mayor Keystone Information Systems, Inc. AGREEMENT FOR PURCHASE OF SOFTWARE LICENSES AND ASSOCIATED SERVICES between City of Yakima 129 North 2"d Street Yakima, WA 98904-2632 (hereinafter referred to as Buyer) and Keystone Information Systems, Inc. 1000 Lenola Road Maple Shade, NJ 08052 (hereinafter referred to as Seller) This Agreement, when executed by Buyer and Seller, shall be a valid and binding contract, and each party agrees to the terms and conditions contained herein together with all Exhibits incorporated herein by reference: Accepted by: Keystone Information Systems, Inc. City of Yakima • Byr--,21\-),\._ ----: By _Authorized Signature Authorized Signature Judson B. Van Dervort, Jr. Richard A Zais, Jr. Name (Type or Print) Name (Type or Print) V.P. School District & Govt. Administration City Manager Title Title On octlPr 22 2-061 On o .+ b€4 J7j ROO/ ( Date p_s :.<w4x.�r e, Date b.: R no ATTEST: Orr caam cr No. 2.00/ ` //'S/ hESO.uflOn aG( `'yam Karen Roberts, City Clerk. City of Yakima DEFINITION OF TERMS Underthis Agreement the followingterms, when capitalized, are &fined to have the following rreanings: Additional Charges: All charges or fees that Buyer is obligtd to pay or reimburse Seller other than the amounts covered in the attached schechle of purchase prices, Schelde 1 Any Hardware, Software or Services not described in this Agreement, or any modifications or additions thereto, or any items related to the implementation or operation of the Information Management System but not specifically listed in this Agreement or in a schedule or appendix thereto are subject to payment by Buyer according to Seller's then currently applicable rates Additional Charges includes expenses incurred in undertaking workfor Buyer such as travel, lodging, meals long distance phone charws and supplies. All such expet es shallbe in accordance with Seller's standard policies governing travel and busiress experses and shall be estimated by Seller for Buyer, approved by Buyer, and charwd to Buyer as incurred. Purchase prices shown in this Agreement are F 0.13 point of origin. All transportation, rigging and draying charges to Buyer's Site(s) shallbe paidby the Buyer. Agreement: This document, including all schedules and exhibits form the entire Agreement. Binary Compatibility. The compatibility among Software programs, Hardware and Operating Systems such that Software will operate on one or another in an identical, unaltered versbn. Buyer's Representative: The manager or officer of Buyer's organization desigiated by Buyer to serve as the official liais n between Buyer and Seller, as needed in dispute resolution. Buyer's Site(s) Location chosen by Buyer and agreed to by Seller for the installation of Compiler Products and/or for the provsion of Services. Component: A individually identified itemof Hardware or Software Comptter Products: Also Products. The specified Compcnents of Equipment, Hardware, Software, machines and Comptter Systems to be installed and/or integrated by Seller under this Agreement. Compiter System Also System. A combination of Hardware and Software Compcnents, including one or more central processors, which together provide independent, fully functional information services to one or more users through the use of connected devices. Date of Completion: The date on whicha separately identified Service is rendered as had been agreed to between Buyer and Seller Date of Installation: The date on which a Computer System, Computer Product, or Modification is locatd at Buyer's Site(s) and is operational per Manufihcturer's specifications or as otherwise agreed to between Buyer and Seller, and standard Documentation has been delivered by Seller to Buyer, as defircd further herein. Documentation: Information including user guides, technical guides and training materials relating to the use and operation of Hardware or Software. These shall be govemed by the same License and use restrictions as Software Product(s). Functional Specification: Any writen definition agreed to by Buyer and Seller of the function of a Product or combination of Products which results from Seller -provided Services. Hardware Product: Also Hardware The specified tangible Components of Comprter Equipment provided by Seller under this Agreement and/cr for which Seller is providing Installation and/or Integration Services. The term "Equipment" is used interchangeably. Implementation Schedule. A schedule mutually agreed to between Buyer and Seller, included in this Agreement, which will guide the order and timing of the installation, implementation, compbtion and payment of all Products and Services being provided under this Agreement. Implementation Services (also Integration Services) Seller provided Services to render specified Computer Products compatible and fully operational in combination, for the performance of specific Information Management System functions. Information Management System: The total compicment of Computer Products including one or more Computer Systems, which are combined to perform certain desigiated functions. Installation Services: Services which render an individual Computer Product operational as per Manufacturer's specifications as separate fromits potential integration or use with the compete Information Management System, ("Intgration Services") License. Buyer§ right to use specified Software as being purchased and graned under this Agreement. Manufacturer• Any company which creats Equipment, machines and/or Software provided under this Agreement. Modification: Also Custom Modification. Shall mean program and/or functional alterations to any Software Product, which is then treated as a Software Product for purpmes of this Agreement. Re -Hosting: When Seller's proprietary Software Products and Modifications thereto are relocated to other Computer Equipment approved, supported and provided by Seller to Buyer. (See Appendix B) Re -Hinting Services: Seller proviled Services to relocate and render operational Application Software and Buyer's data, onto specified Computer Equipment. Re -Lensing: When Seller's proprietary Software Products are re- tocaicd to other Comptter Equipment not approved and supported by Seller, or not proviled by Seller to Buyer. (See Appendix B) Seller's Representative. An officer of Seller designated by the president of Seller to act as the official liaison between Seller and Buyer, as needed for dispute resolution. Services: Also Implementation Servees and Training Servbes. Services which are designated in Schedule 1 as "on-site" will be provided at Buyer's Site(s) Any Servbes not so designated may be provided from Seller's location at Seller's sole determination. Keystone Information Systems, Inc. Page 2 City of Yakima Software Maintenance Fees: Amounts due from Buyer to Seller annually for each Software Product, based upon Seller's current published fee schedule for the user class category of Buyer, and hours of coverage desired by Buyer, as charged consistently among other organizations with similar Products and sizing, for which Seller will provide the extended warranty and services defined in Appendix D. Software Prodtct or Module. Also Software or Product. Shall mean computer programs that combined, perform a function such as system operation, database management, etc That which is being Licensed under this Agreement. Additional Software Products: Shall be those Seller -owned Software Products to be devebped by Seller for Buyer's use subsequent to the execution of this Agreement. Application Software A Software Product that perfcrms a specific business operation such as accounting, student scheduling, etc. May be a standard version or modified. Database Software Also RDBMS Shall mean Third Party Software which Software Seller may be proviling and/cr proviling Servbes relat;d to under this Agreement. Such software is the fundamental basis to the operation of Application Software Operating Software. Also Operating System. Shall mean ThirdParty Software which Software Seller may be providing and/or providing Servbes related to under this Agreement. Such Software perfcrms basic functions of operating a Computer System. Standard Software Products: Shall be those Seller -owned Software Products already functional and demonstrable at the time of execttion of this Agreement. Third Party Software Product: Shall mean Seller -supplied Software thatis not proprietary to Seller, but is a Product of a separate party for whom Seller is an authorized agent Typically Operating Software and Database Software Sublicensee Antler term for Buyer in this Agreement relative to Buyer's use of certain Third Party Software Products, the Licenses for which may be grantd under this Agreement. Suppier• Antler term for Manufacturer in this Agreement as used in Third Party Software Product Licenses and warranty terms Test Period: Also Acceptance Perhxl: A period of time defiled in the Implementation Schecble, Schedule 2, during which Buyer may test and review Products and/or Servbes performed by Seller before final acceptance as defined herein. Trailing Services: Seller provided Servbes to instinct Buyer designated personnel in the use and operation of the designated Products. VAR. Another term for Seller in this Agreement relative to Buyer's use of certain Third Party Software Products, the Licenses for which are be ing grant d under this Agreement. Keystone Infortnation Systems, Inc. Page 3 City of Yakima WHEREAS, Buyer has solicited propcsals for the purchase and installation of Software and certain other Services to meet its current information needs and WHEREAS, Seller is engawd in the busiruess of seling Software Products and Associated Services and assuring that Hardware and Software Products are fully compatible, installing the same and providing Implementation and Training Services for the operation thereof; and WHEREAS, Buyer and Seller wish to reduce to writhg their Agreement concerning their respective obligations in the provision of these Products and Services. NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained, the parties agree as follows: 1. PURCHASE AGREIMENT/PURCI-IASE PRICE Buyer agrees to purchase from Seller, and Seller, by its execution of this Agreement, agrees to furnish to Buyer, on the terms and conditions contained herein and on the following pages hereof, the following Software Products and Associated Services ("Products" and "Services") as listed in Schedule 1 of this Agreement, for the total purchase prices stated there. 2. APPLICABLE TAXES In cases where Seller is liabb and able to collect taxes there shall be addedto any charges payable by Buyer under this Agreement an amount equalto any and all applicable taxes, however designated, levied or based on any charges payable under this Agreement for the sale or use of Software Products and Services including, without limitation, state and local priviege, sales, and use taxes and any taxes or amourts in lieu thereof paid or payable by Seller in respect of the foregoing exclusive only of business and occupation taxes and taxes based upon net incore Any personal property taxes assessable on the Products after delivery shall be borne by Buyer including any sales taxes which were not within Seller's ability to charge for. Such Additional Charges shall be billed by Seller before, or withn a reasonable time following payment of such taxes by Seller, and shall be due and payable by Buyer promptly following billing thereof, whetter or not such billing occurs following the Date of Installation of the Software Product or the Date of Compbtion of Services hereunder 3. PAYMUNT/INSTALLATION/ACCEPTANCE Buyer agrees to pay the purchase price for the Products and Services being purchased under this Agreement as defined in Schedule 1 of this Agreement. For Products associated with installation or Implementation Services, a mutually agreed to Implementation Schedule, included as Schecble 2 to this Agreement, will guide the order and duration of the installation, testhg, training, live -use and invoice payment of each separate Product and Service being purchased under this Agreement. The totalpurchase price for any Product or Service may be prorated over the course of the installation or compbtion, and acceptance of thatProduct or Service, as specified in Schedule 2, including an up front deposit amount at time of execution of this Agreement. It is agreed that each Product or Service may have its own Date of Installation or Date of Compbtion and that payment on each individually shall be due notwihstandingthe non -installation or non -completion of other Products or Services. It is hereby understood that any Custom Modifications and/cr Additional Software Products to be devebped under this Agreement, will also be billed for, and paid, as separate items upon their installation. Seller shall notify Buyer of the Date of Compbtion of each separate Servbe by submiting an invoice for thatServi e In accordance withthe Implementation Schedule, Seller shall notify Buyer as soon as each Product is installed and operational. Seller shall notify Buyer on the Date of Installation of each Hardware Product, Software Product or Modification. At that time, the associated Product warranty shall commence. After Date of Installation, it shall be Buyer's responsibility to manage the Product environment, including supervision and control of its use, security, System back-up, restart and recovery. Acceptance Buyer will then have specified periods of time, (Test Periods) as defined in the Implementation Schedule, from Date of Installation of certain Product(s), Modification(s) or groups of such to review and test to determine that Product(s) or Modification(s) is functioning as had been demonstrated, or in accordance with Manufacturers' specifications, and to notify Seller of any functional probbm. Seller will correct the probbms withn this established Test Period or as soon as possble. When Buyer and Seller have compbted each Test Period and correction(s), or if no probbms are reported in the operation of the Product(s) or Modification(s) by Buyer during the established Test Period after Date of Installation, that Product(s), Modification(s) or group of such will be considered accepted for all purposes under this Agreement, including any relaed payments defined in the Implementation Schedule. Seller and Buyer agree in good faith to use their best efforts to compbte all testing and corrections within the established Test Period from Date of Installation. It is Seller's responsibility to enabb Buyer to test the functional operation of any Product(s) or Modification(s) by virtue of sufficiently instructing Buyer's designated staff member in the operation of such, or by demonstration. It is the responsibility of Buyer to test the Product(s) or Modification(s) durirg the designated Test Period and to - determine that it has sufficient training and knowledge to be able to testthis, or to waive its right by lapse of the established TestPeriod by absence of notification of Seller of any probbm, at which pointProduct(s) or Modification(s) will be deemed to be accepted for all purposes under this Agreement, including payment. In any event the Product(s) will be considered fully accepted when Buyer places the Product(s) in live production use, and full payment for any balance due upon acceptance will be consilered due immedate ly At the conclusion of any Test Period, Seller will issue an invoice for the associated balance due for thatProduct(s) or Modification(s). Any invoice issued for a Product, Modification or Service shall be consilered due within thirty (30) days if no objection or dispute is brought to Seller's attention by Buyer within thatthirty (30) day period. Buyer is not required to pay amounts in dispute provided: (I) Seller is notified of the nature and amount of the dispute withn five (5) days of receipt of Seller's invoice, (2) Buyer pays all amounts due that are not in dispute; and (3) Buyer proceeds promptly in an effort to resolve the dispute through discussion and, if necessary, through mediation as provided for below. Additional Charges will be invobed to Buyer as they are incurred by Seller Such invoices are due for payment, in full, thirty (30) days from date of invoice Buyer agrees to pay a late payment chargp of one percent (1.0%) per month on all undisputed amourts not paid when due Buyer also agrees to pay all expenses of collection, including attomey fees incurred by Seller in collecting accounts not paidwhen due Buyer's failure to pay all amounts owed within sixty (60) days of the issuance of an invoice, or to take action as stated above, (that is, to have Keystone Information Systems, Inc. Page 4 City of Yakima raised a reasonable objection to an invoice within five (5) days of its receipt) constitutes a breach of this Agreement by Buyer. As a consequence of such breach, Seller may exercise its rights as provided under the law Seller may also suspend all services being provided to Buyer under this or any support agreements existing between Buyer and Seller after giving a thirty (30) day notice that Services will be suspended by reason of non-payment. Buyer warrants and represents that it has the financial capability to perform its obligations under this Agreement Any failu-e or delay of any third party lending or financial insthrtion to provide timely and adequate financing to Buyer does not relieve Buyer of its responsibility to remit amounts payable to Seller when due. 4. SOFTWARE LICENSE The partbs agree that payment hereunder conveys to Buyer a perpetual non-exclusive, non -assignable License for the Software Products and Modifications, including delivery of source code for Seller's Software Products and Modifications, for use of such on the following Equipment, or subject to the terms and condi-ions set forth below, other Equipment which Buyer may subsequently acquie, and at Buyer's Site, or other site(s) subsequently submtted to Seller in writing, to perform the information processing needs of duly authorized entities only MANUFACTURER. Compaq MODEL. Alpha UNIX SERIAL NUMBER: To Be Compbted Later In the event Buyer subsequently acquires such other Equipment, this Licerse shall only be validfor use on the other Equipment as provided for below Buyer shall notify Seller in advance if Buyer intends to purchase other Equipment and Seller shall advire Buyer if the Software Products can be operated on such Equipment and if Seller supports the Software on such Equipment. If the Software Products can be operated and supported on such Equipment, albeit with modifications, and Buyer purchases such Equipment from Seller, Seller agrees to install same on the Equipment provided thatBuyershallbe responsible for a standard Re-Horting fee, as in Appendix B, for Seller's standard publshed price for that Software Product in the category appropriate to Buyer's then current population of users of Seller's Software Products, as well as the reasonable costs of installation and any modifications necessary (Re -Hosting Services) to adapt the Software Products to the new Equipment. In the event Buyer transfers Software Products to Equipment not supported by Seller, or Equipment not purchased from Seller, Buyer agrees to pay Seller the equivalent of Seller's standard Re -Licensing fee, as in Appendix B, for Seller's standard publshed price for that Software Product in the category appropriate to Buyer's then current population of users of Seller's Software Products, as well as the reasonable costs of installation and any modifications which Seller might provide (Re -Hosting Services) to adapt the Software Products to the new Equipment. However, in the case of Equipment not supported by Seller, Seller is relieved from any warranty obligation related to Software Products and any Servbes or support obligations described in this Agreement or in an existing License Service Agreement for thatre-located Software Product. Buyer is purchasing a Licerse under this Agreement for the number of combined simuianeous users of all Seller Software Products as provided for in Schedule I The number of users can be increased by payment to Seller of the appropriate upgrade fee as follows: The Buyer shall pay the currently publshed price for the Software Product License in the higher user category less the amourt previously paid for the Software Product License. Any additional Software Product License to be purchased from Seller by Buyer which is not described in Schedale 1 of this Agreement shall be purchased at the price category which corresponds to the resulting total user population to be accessing all Seller Software Products Licensed, and may be addedto the terms and condi-ions of this Agreement by either an apperdix signed by both Seller and Buyer or Buyer's purchase order. If this addition resuks in a higher user category as defined by Seller's then current publshed prichg, Software Products previously Licensed to Buyer must then be upgraded to the higher user category In case of such upgrade, the Buyer shall pay the currently publshed price for the Software Product Licenses in the higher user category less the amourt previously paid for the Software Products Licenses. Any Re-Hcsting fee, Relicensing fee, increased fee for a higher user category or like fee or charw payable by the Buyer shall not exceed the mostcompetitive fee or charge (from the Buyer's perspective payable by other buyers for the same or substantially similar Produot(s) or Servbe(s) under like circumstances. Third Party Software Product: Buyer also agrees to execute the standard agreements for the License of Third Party Software Products purchased under this Agreement, and the rights to use, assignment and transfer of those Products will be govemed by those agreements. Those terms and conditions may be incorporated by reference in this Agreement as Appendix C. Buyer is purchasing a License under this Agreement for only the number of simultaneous users of Third Party Software Products as provided for in Schedule 1 Buyer's License for both Third Party and Seller's Software Products does not include the right to reproduce, publsh or permit use to other organizations any Software Product or Modifications to be purchased or devebped under this Agreement. Seller expressly reserves and Buyer expressly consents that the entire right and title to such Software shall remah with Seller or Manufacturer, and each has the exclwive right to protect by copyright or otherwise, to reproduce, publish, sell and distribute all such Software to anyone Buyer agrees to use reasonable controls to protect the confilential nature of all Software furnished by Seller Buyer shall not copy, nor permit any party to copy, Software Product or any portion thereof except that Buyer is permitted to copy Product solely for back-up or archival purposes, as necessary, but only with the copyright and proprietary notices in the same form as affixed on the original and with such copies remaining subject to the terms of this Agreement. If Buyer is unable to operate Product on the designated Equipment due to an Equipment malfunction, Product may be used temporarily on other Equipment during the period of Equipment malfunction. If no successors, heirs or assigns, to Keystone Information Systems, Inc exist at the time Keystone Information Systems, Inc. ceases to conduct business, the Buyer's License herein shall survive, including the restriction that Buyer shall not have the right to sell or otherwise transfer rights or access to the Software Products to any other organization. 5. PROPRIETARY RIGHTS/ INFRINGEMENT INDEMNIFICATION Buyer shall keep confidential and treat as proprietary such proprietary information, which include trade secrets, as may be provided to Buyer. Buyer shall use any information provided by Seller solely for the purpose for which it was provided and shall observe the restrictions of any legends marked thereon. It is specifically agreed by Buyer that Seller and Product Manufacturers retain for themselves all proprietary rights in and to all designs, engineering details and other data pertaining to any Products and/cr Docunentation. With regard to any proprietary information, Buyer shalt (a) Acquie no title or interest therein; (b) Take sufficient steps to safeguard and protect the contents of discbsure to any thirdparty, (c) Take appropriate action by instmction or agreement with employees and others who have access to the Prodtct(s) to satisfy its obligations hereunder. Keystone Information Systems, Inc. Page 5 City of Yakima Seller warrants that the Product(s) being purchased under this Agreement does not infringe on a United States patent or copyright and that Seller has the agreement of appropriate Prodtct Manufacturer(s) for distribution of such. And to thatend, Seller shall hold Buyer harmless from any damages arising fromsuch claim Seller shall defend any claim suit or proceeding brought agairst Buyer so far as it is based on a claim that the use or transfer of Prodwt(s) and related material delivered heremder constitutes an infringement of a United States patert or copyright, so long as Seller is notified promptly in writhg by Buyer as to any such action and is given full authority, information and assistance (at Seller's expense) for the defense of any such claim or proceeding. Seller shall pay all damages and costs awarded therein against Buyer but shall not be responsible for any compromise made without its consent. In the event of a final judgnnnt which prohibits Buyer's continued use of Product(s) by reason of infrhgement of a United States patert or copyright, or if at any time Seller is of the opinbn thatProduct(s) is likely to becone the cause of an action for infrhgement of a United States patert or copyright, Seller shah at its sole option and at its expense, either obtain the rights to continued use of Prodtet(s) or replace or modify Prodtet(s) so thatit is no longer infringing, or may discontinue use of the Prodwt(s) and accept its retum. If the Product(s) is already purchased, Seller will grant Buyer a cash refund for the amourt paid. Seller hereby notifies Buyer of Seller's and Manufacturer's proprietary, confidential and/or trade secret rights, and requies Buyer to comply with the requiements impoTd by thissectbn. Seller shall not be liabb for any claim, suit, or proceeding brought against Buyer, so far as it is based on a claim that the Licensed Product(s), when combined with other Hardware or Software Product(s), which are not endorsed or approved by Seller to Buyer, constitute an infringement of a United States patert or copyright. Hardware, Operating System Software, and relational database software on which Seller's Products are operated by Buyer are not the subject of this limitation on Seller's liabiity. Notwthstandingany provsion in this Agreement or the attached Schedules or Appendces to the contrary, no limitation on liabiity set forth in this Agreement or the attached Schedules or Appendices shall apply to any claimthatthe use or transfer of Product(s) and related material or services delivered heretnder constitutes an infringement of a United States patert or copyright. 6. CONFIDENTIAL INFORMATION Buyer's computerized data and information for which Seller is providing Services underthisAgreement shall be treatd as Confidential Information by Seller All such Confidential Information will be safeguarded and kept confidential by Seller during the term of this Agreement. Buyer's Confidential Information shall be safeguarded by Seller to the same extert thatSeller safeguards confidential material or data relating to its own business. Seller will not be liabb for discbsure of any information received by Seller under this Agreement if: (a) The information is generally available to or known to the publc, (b) The information was devebped by Seller outside the scope of this Agreement, or; (c) The information was discbsed to Seller by a third party. Buyer shall not grant Seller access to any data or software programs whichare not owned by Buyer or within Buyer's right to discbse Buyer agrees to indemnify and to hold harmess Seller, its agents and employees from any actions or claims for breach of this provsion, brought against Seller, its agent and employees for copyhg, modifying or relocating computer programs or data for Buyer. The indemnification herein shall include, but not be limited to, payment of Seller's expenses in the defense of any claim arising hereunder including attomey's fees and the payment of any damages paid by way of award, settlement or otherwise Buyer specifically makes the following representations and warranties interding that Seller shall rely upon the accuracy of such representations and warranties in agreeing to provide the Services set forth herein. (a) Buyer knows of no prohibition against the copyhg or retrbving of such computer programs and data, and (b) Buyer is aware of no contract or agreement either written or oral whichwouldprohbit the copyhg of such comptter programs and data, or (c) Buyer is the owner of the complier programs and data which are beingretreved, or (d) Buyer has obtained writen permtsion from the owner of such computer programs and data to permt Seller to perform the Services in this Agreement. In the event any Software Product resuls from Seller's Services under this Agreement, which may be patentabb or copyrightable material, with the exception of Buyer's converted Application Software and data, Seller shall have the sole excltsive rights thereto. The tangble property and tangble work products created by Seller pursuant to this Agreement shallbelorg to Buyer. However, all Systems, programs and specifications, and other materials and Hardware owned by Seller or in the possession of Seller prior to execution of this Agreement and used by Seller in conjtnction with Seller provided Services, shall continue to belong excltsively to Seller whetter or not they were specifically adapted by Seller for use by Buyer. Any ideas concepts, know-how or techniques relating to data processing devebped durirg the courx of this Agreement by Seller, or jointly by Seller and Buyer, may be used by both partes separately and indecendently, and shall not be subject to the restrictions above. Any data or other materials furnshed by Buyer for use by Seller in connection with the Services performed under this Agreement shall remail the sole property of Buyer and will be held in confidence by Seller, as provided for above. Notting in this Agreement shall be construed so as to precede Seller from devebping and marketing data processing materials which are competitive with those prepared for Buyer heretnder, irrespective of whetter such materials are similar or related to the data processing material(s) devebped by Seller for Buyer pursuant to this Agreement. 7. CONSEQUENTIAL DAMAGES Seller believes that the Products and Services furnished hereunder are accurate and reliable However, the amounts to be paid to Seller under this Agreement do not incluse any assumption of risk. Seller and Product Manufacturer(s) shallin no event be liabb regardless of the form of the action for loss of profit, goodwill or other special or inciccntal damages or consequential damages whichmay arise or be asserted by Buyer or others as a resuk of the performance of Services or failure of Products provided by Seller under this Agreement whether or not relaed to a warranty, or whether or not the possbility of such damages was discbsed to Seller or could have been reasonably foremen by Seller or Product Manufacturer(s). Buyer furtler agrees that Seller will not be liabb for any lost profts or consequential damages, or for any claim or demand, related to such, against Buyer by any other party. Seller's sole responsibility relative to Prodtet failure shall be as provided for in the Warranty Section below. Seller will maintain comprehensive general liabiity and automotive liability and property damage coverage for injuries to persons and property damage occurring during the performance of Services by Seiler under this Agreement, with limit of one millbn dollars ($1,000,000.00) for Keystone Information Systems, Inc. Page 6 City of Yakima injuries to persons and one million dollars ($1,000,000.00) for damage to property Said insurance shall constitute Seller's sole liablity for said injuries and damages. 8. WARRANTY Seller warrants that Products provided under this Agreement will be free from defects in workmanship, material and operating faihre from ordinary use under the terms and warranty period specified for each Product below and in Appendix C, and will conform to applicable Manufacturer's specifications prevailing when shipped, from date of shiprrent of Products. Seller Software Product warranty. Seller's sole responsibility for Seller's proprietary Software Products under this Agreement, for a warranty period of thirty (30) days following each date of acceptance defined in Schedule 2, or commencement of live use, whichever is sooner, shall be to modify, repair, correct or replace the Software as delivered to Buyer so thatthe modified, repaired, corrected or replaced Software conforms to the specifications agreed upon between Buyer and Seller It is Buyer's responsibility to notify Seller in writhg of any defects discovered by Buyer during the thirty (30) day warranty period. Buyer may optionally elect to extend this warranty under the terms of Seller's Licerse Service, which may be included here as Appendix D of thisAgreement. The terms and condtions of such extended warranty are specifically identified in thatLicense Service agreement. Third Party Software Prodwt warranty- With arranty With regard to Third Party Software Products, warranty terms and conditions not stated in this Agreement shall be as provided for in the separate warranty or License agreement presented to Buyer for the use of those Products. Seller and Third Party Prodwt warranties: Seller's obligations hereunder shall be limited solely to the terms and condtions provided here and in each Product warranty presented to Buyer. These warranties and Seller's liability thereunder are expressly condiioned upon Buyer's proper use, management and supervision of the Products. Buyer agrees to accept the Products and the warranties applicable thereto, under the terms and condtions specified therein. With respect to warranty, Buyerfurticr agrees to be solely responsible for• (1) Selection and use of the Products to meet Buyer's needs and to achieve Buyer's intended results; and (2) The selection, use and resut of any other products usedwiththese Products. Product Manufacturers do not warrant thattheir Products will operate in any combination selected by Buyer. Product Manufacturers shall neither have responsibility for, nor be liabb in contract, tort or otherwise, for any product which is provided or licensed by Seller for use with that Manufacturer's Products, and such products are provided solely under the Manu&eturer's warranty, or any provided by Seller All warranties are conthgent uponproper use of the Product(s) and each Component. These warranties will not apply. (1) If any Standard Software or Third Party Software Component has been modified by Buyer without the consent of Seller; or (2) Where Buyer is not substantially in compliance with its obligations under this Agreement; or (3) When Software or Hardware have been added to the System, without an executed amendment to this Agreement. The warranties contained hereh are in lieu of all other warranties, express or impled, as to the condition, merchantability, fitness for a particular purpose, or for any other matter concerning the Products or its use or performance Buyer hereby waives any claim it may have against Seller for any loss, damage, or expense of any use or maintnance thereof, or for any servicing or adjustment thereto, not expressly covered by the warranties contained herein. 9. MODIFICATIONS BY SELLER Modifications to the Software Products, which Seller has agreed to provide at a price or hourly rate agreed to in Schedule 1 shall be covered under the License and other terms of this Agreement and shall be provided by Seller based upon the specifications agreed to between Seller and Buyer and appended herein as Appendix A. Any Modification to Products which is not referenced in Appendix A at the time of execution of this Agreement will be addressed later in a written Functional Specification, agreed to between Buyer and Seller and quoted to Buyer at Seller's then current hourly rate, or at a fixed price, and will then be considered appended to this Agreement. 10. MODIFICATIONS BY BUYER(DERIVATIVE WORKS Buyer shall have the rightto modify Seller's proprietary Software Products and may combine such Modifications with Seller's Software Products. Suchwillbe termed "Derivative Works" of Seller's Software Products and will be govemed by the License terms of this Agreement. Buyer may operate these new programs on the specified Equipment. Any Modifications by Buyer will relieve Seller fromwarranty obligations to the extent that any Hardware or Software failures due to Software Modifications made by Buyer shall be the responsibility of Buyer, and any expenses incurred as a result of such failure shall be borne by Buyer. Buyer expressly agrees to include Seller's copyright notice and proprietary notice on all copies of Software Products, in whole or in part, in any form made by Buyer in accordance with the License 11. IMPLEMENTATION SERVICES Seller agrees to provide all Services identified in Schedule 1 to integrate and render operational, for specified purposes in the total Information Management System, each item of Software and Equipment identified in Schedule 1, with payment by Buyer of any associated integration fee in Schedule 1 Fees for integration shall be billed for and paid as separate items for each associated Component of Equipment or Software as it is rendered useful with the total Information Management System. The order and timing of Services and payments will be defired in Schedule 2. 12. TRAINING SERVICES Seller agrees to provide training to personnel selected by Buyer at a rate specified in Schedule 1 for each segment of training provided. Buyer agrees to purchase at leastthe amourt of training as defired in Schedule 1 Additional training may be purchased at Seller's current rate 13. SOFTWARE MAINTENANCE A separate License Service Agreement will be provided by Seller for the extension of Software Product warranties and for continuing support and update of Software Products purchased under this Agreement Seller shall assume no responsibility for update and revision to Software Licenses sold hereh, beyond the warranty terms described hereh, except as defired in a separate License Service Agreement. Suchmay be incorporated hereh as Appendix D 14. PROJFCTLEADFRS Buyer and Seller shall each designate one individual to serve as primary contact person for all issues pertinent to the implementation of Products and Services and the fulfilment of obligations covered under this Agreement, as well as managing the on-going relationship between Buyer and Seller, and securing the full cooperation of Buyer's personnel necessary for the implementation of Products and Services under this Agreement, including for training and for entry of requred data which is not avaihble for automated conversion from Systems beingreplaced. The responsibilities of the respective designated project leaders shall be to Keystone Information Systems, Inc. Page 7 City of Yakima serve as the single point of contact between the organizations, and to coordinate all necessary resotrces and staff in the employ of each respective organization, which are required during the cour of the implementationof Prodtets and Servees covered under this Agreement. The respective project leaders will also obtain the proper authority from within his/her organization for tasks such as final approvals and acceptance of Prodtcts, Servees and invoees, as well as definition and agreements between Buyer and Seller on Functional Specifications. 15. SELLER'S STAFF Seller's staff is not, nor shall it be deemed to be, at any time during the time of this Agreement, the employees of Buyer. Seller willbe solely responsible for payment of all compensation owed to Seller's staff assigned to Buyer under this Agreement including payment, if any, of employment related taxes and Workmen's Compensation Insurance. Seller shall have the right to determine which of its staff be assigned to perform Servees for Buyer under this Agreement, and shall have the sole right to re-aign any staff person. Buyer may request to remove any individual from an assignment for cause, upon reasonable notice Upon suchnotice, Seller will make staff substitution as soon as is practical, and will afford Buyer the opportunity to interview the proposed replacement staff For work assignments which do not have a written Functional Specification, and are on a time and materials rate basis, Buyer shall be responsible for the technical direction and review of the Services performed by Seller's staff, and shall appoht a representative to carry out this responsibility Seller shall be responsible for supervision and general control of its staff and of the supervision of work assignments with prevbusly defiled Functional Specifications. Buyer shall promptly notify Seller of any problems needing Seller's management attention. Both Buyer and Seller agree that neitler shall directly or indirectly solicit for employment, employ or otherwise retain, even on a part-time, temporary basis, staff of the other during the term of this Agreement, nor for a period of one (1) year after termination of this Agreement unless mutually agreed to by both partes in writhg. 16. OPERATING SUPPLIES Buyer will be responsible for the acquisition of and payment for any pre-prinnd forms, and all other supply items such as disk packs, magnetic media, cards, stock paper, ribbons or other consumable accessories or supplies as may be requied for use of the Products. 17. ENTIRE UNDERSTANDING This Agreement contains the entire understanding of the partes and is intended as a final expression of their agreement and a compete statement of the terms thereof whichsupersedes all proposals, oral or written, and all other communicationsbetween the partes relating to the subject matter of this Agreement. The terms and condtions of this Agreement shall prevail, notwthstandung any variance with the terms and conditions of any order submitted by Buyer subsequent to this Agreement. 18. AMENDMENT This Agreement shall not be modified except by an instrument in writing executed by an officer of each Buyer and Seller Additions to the Schedules and Appendices may be made as provited for hereh. 19. TERM AND CANCELLATION The term of this Agreement shall be until both partes have fulfiled their respective obligations hereunder Buyer and Seller reserve the right to terminate this Agreement with cause, subsequent to use of the Dispute Resolution and Mediation processes set forth below. Any agreement between the partes as to cancellation shall be in writing and executed by an officer of Seller and Buyer. Cancellation: Seller shall be entitled to retain any deposit made by Buyer, as provided for in Schedule 2, and Buyer shall pay all reasonable charges for Product delivered and Servees provded throtgh the date of termination, with the amourt of the deposit made by Buyer appled to these. If the full purchase price for a Produxt has not been paid by Buyer to Seller at such termination, Seller shall be entitled to take possession of any Product(s) in which it may have security interest. Software Product(s), Modification(s) and related materials, govemed under the License terms of this Agreement, shall be returned to Seller and expunged from Buyer's System, including copies of programs and source code on magnetic media. Seller may requre a sworn affidavit to verify destruction of such Licensed Products. If a Software Product or Modification has been paid for in full, and Buyer retains use of such, yet terminates this Agreement, the terms of Software Licerse stated in this Agreement shall survive suchtermnation. 20. VALIDITY OF AGREEMENT If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby Any provsions of this Agreement which are heldto be too broad in scope shall be reduced only to the extent requied to makethemenforceable 21. GOVERNING LAW This Agreement willbe govemed by the laws of the State of Washington and for all purposes shall be construed in accordance with and governed by the laws of the State of Washington. 22. LIABILITY AND DEFAULT If either party to this Agreement shall commt a breach of any warranty, covenant or agreement contained herein and fail to take action to remedy such breach within thirty (30) days after written notice, the other party may, in addition to any other remedes it may have, termnate this Agreement by writen notice, using the terms of cancellation outthed above. No action arising out of this Agreement, regardless of the form of action, may be brought by either party more than three (3) years after the cause of action has accrued. Irrespective of the above limitation on suit, an actio for non-payment may be brought by Seller withh three (3) years fromthe date of lastpayment. A term or condtion of this Agreement can be waived only by written consent of both partes. No delay or failue by a party to exercise any right under this Agreement, and no partial or singe exercise of that right shall constitute a waiver of thator any other right unless otherwise expressly provided hereh. Keystone Information Systems, Inc. Page 8 City of Yakima Forbearance or indulgence by either party in any regard shall not constitute a waiver of the term or condtion to be performed and, until performance of the termor condtion is compbte, the other party may invoke any remedy available under the Agreement or by law, despie such forbearance or indulgence 23. FORCEMAJEURE Neitler Buyer nor Seller shall be liable to each other or to any third party for failure to perform its obligations under this Agreement, or for any delays arising out of cause beyond the reasonable control of Buyer or Seller such as an act of God, war, civil distwbance, strike, work stoppage, transportation contingencies, power faikres, laws, regulations, ordinances, acts or orders of any govemmental agency or official thereof. Both partbs shall use their best efforts to resolve any such occurrences in a manner as will be fair and equitable to bothpartes. 24. DISPUTE RESOLUTION Any dispute between the partbs herein which is not resolved in the normal course of business, or as otherwise provided herein, shall be resolved as follows: (a) Within ten (10) working days from the sending of written notice by either party, Seller's project leader and Buyer's project leader shall meet and attempt to resolve the disptte; (b) If the dispute is not resolved to the satisfaction of both parties within ten (10) days of said meeting, then the dispute shall immediately be submitted to Buyer's Representative and Seller's Representative for an attempted resolution; (c) If the dispute is not resolved pursuant to the foregoing procedures within thirty (30) days of the initial written notice, Buyer's Representative and Seller's Representative, Buyer's Chief Executive Officer and Seller's President shallmeetto attempt to resolve the issue; (d) If the dispute is not resolved within sixty (60) days of the initial written notice, then either party may commence mediation as specified under "Mediation" below, which course of action must be entered upon by both partes before any legal action may commence Except where clearly prevented by the area in disptte, both partes agree to continue performing their respective obligations under this Agreement while the disptte is being resolved. 25. MEDIATION If a dispute arises out of or relates to this agreement, or breach thereof, and if the dispute cannot be settled through negotiation, the parties agree irst to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Commercial Mediation Rules before resorting to arbitration, litigation, or some other dispute resolution procedure. However, nothing herein shall prevent either party from taking appropriate legal action to enforce this Agreement or recover damages in the event of an alleged breach. However, nothing herein shall prevent either party from taking appropriate legal action to enforce this Agreement or recover damages in the event of an alleged breach. 26. GIVING NOTICE Any notices under the Agreement shall be in writing, delivered in person or by certified retum receipt requested mail, by hand delivery or overnight courer to the address set forth above, or to such other address as the partbs may hereinafter substitute by written notice given in the manner prescribed in this Article. Notices shall be deemed as given when received. 27. CONSTRUCTION Title and paragraph headings contained in this Agreement are for convenient reference only The words contained shall not be held to modify, amplify or aid in the interpretation of, and do not constitute part of this Agre ement. This Agreement may be executed in any number of counterparts, each of whichshallbe deemed to be an original and all of which shall constitute together one and the same agreement. 28. ASSIGNMENT This Agreement is not assignable without permssion from Seller Any attempt to assign any rights, duties or obligations which arise under this Agreement without suchpermsion shall be void. Seller shall be entitled, upon giving prior written notice to Buyer, to assign this Agreement and Seller's rights hereunder, to any parent, subsidiary, affiliates or agent thereof; provided that any such assignment by Seller shall not relieve Seller of its obligations under this Agreement 29. BINDING EFFECT This entire Agreement shall be binding upon and inure to the benefit of the partes herein, their successors and assigns, and legal representatives Keystone Infotiitation Systems, Inc. Page 9 City of Yakima Schedule 1 Schedule of Purchase Prices PRODUCTOR SERVICEDESCRIPTION .. ..... Blacksmith FUSION GUI License PURCHASE PRICE ,Standard Software Product 100 concurrent user license for upgrade from Infocul GV series Financial modules to LOGIC Financials Includes: Budget Preparation, Budget Control, Purchasing, Accounts Payable, Check Reconciliation, Cash Receipts, General Ledger, Capital Projects Tracking and Financial Report Writer $ 18,000. 00 100 concurrent user license for upgrade from Infowl GV series Miscellaneous Inmicing to LOGIC Miscellaneous Invoicing and Accounts Receivable 9, 600 00 Subtotal Standard Software Product $27, 600.00 Standard Software Proditcatevievv. Training LOGIC Financials Product Review (I day) $800.00 LOGIC Miscellaneous Invoicing and Accounts Receivable Product Review (1 day) 800 00 LOGIC Financials Training (5 days) 4,000.00 LOGIC Miscellaneous Invoicing and Accounts Receivable Training (1 day) 800. (X) Subtotal Standard Software Product Review and Training Services $ 6,400.00 , , , • Ito Oeroentofioo- Services Software/System Installation & Configuration Services (2 days) $1,600.00 Estimated Data Conversion (8 days) 6,400.00 Additional Training and Assistance for use ofLOGIC Financial Report Writer (2 days) 1,600.00 Consultation or Definition of Desired Third Party Software interfaces (5 days) 4,000 00 Subtotal Implernentation Services $13,600.00 -Software' IlVio di Ma ti °Us • • Ay Estimated cost for Accounts Receivable revenue account posting sdection, option at invoicing Or payment receipt (Estimated chargeable effort 2 days) $1,600.00 Estimated cost for Accounts Receivable Cash drawer interface (Estimated chargeable effort 2 days) 1, ma 00 Estimated cost for Accounts Receivable Classification c f Invoices placed with collection agencies (Estimated chargeable effort 3 days) 2,40000 Subtotal Estimated Software Modifiaztions $5,600.00 Total Software and Associated Services $53,200.00 OpiionairProducts:ond.Stpuot , .. ..... Blacksmith FUSION GUI License $300.00 / Pt user $175.00 each additional user Keystone Information Systems, Inc. Page 10 City of Yakima Schedule 2 Implementation Schedule This schedule is intended to guide the order and timing of events and objectives, and is subject to on-going revision as agreed upon between Buyer and Seller. Certain dates (such as for data conversions or Modifications) cannot be completed until completion of the Product Review Meeting for that application area. Keystone Information Systems, Inc. Page 11 . TASK 'T'ASK IF1I NCE. ASSIGNED Eli ECtI DATE ACTUAL:. DATE. Contract Award KIS / CY Deposit, 30% of contract value = $15,960.00 Assignment of Project Leaders KIS / CY 1St Week KIS = CY = Configuration of Server with. Installation of Seller environments / products. Install Seller's Standard Products (2 Days) KIS 2nd Week Implementation Fees: $1,120.00 Product Review Meeting - FINANCIALS (1 Day) KIS t CY 2"" Week $9,000.00 (50%) Product:Cicense Fee + $560.00 each :day used (includes deposit) + travel expenses Delivery of Authorization Documents KIS 4t' Week Authorization to Proceed CY 5th Week Delivery of Data Conversion KIS 7th Week Delivery of Modifications KIS User Training — FINANCIALS (3 Days) KIS / CY 8th Week $560 00 each day used (includes deposit) + travel expenses Validation: Begin Acceptance Test Period — FINANCIALS CY 9th Week Data Conversion Fees * End Acceptance Test Period — FINANCIALS CY 13th Week 20% Product License Fee: $3,600.00 Live Use — FINANCIALS CY 13th Week Begin Software Maintenance Coverage — FINANCIALS CY 17th Week $ — Prorated for Fiscal Year Additional User Training — FINANCIALS REPORT WRITER (2 Days) KIS / CY 17th Week $560.00 each day used (includes deposit) + travel expenses Product Review_ Meeting: - Misceitaneous invoicing and Accounts Receivable (1 Day) KIS t CY 2"d Week $4,800:00 (0%) Product Lieense Fee + ` $560:00: each .day used (lnctudes_ deposit) + travel expenses. ..... _ ..., Delivery of Authorization Documents KIS 4th Week Authorization to Proceed CY 5th Week Delivery of Data Conversion KIS Delivery of Modification: (2 Days) KIS 6th Week $1,120.00 — Estimated Keystone Information Systems, Inc. Page 11 City of Yakima TASK TASK J kR NCE. ASSIGNED ExW DATE: :ACTUAL DATE. I . Accounts Receivable revenue account posting selection option at invoicing or payment receipt. Delivery of Modification: (2 Days) Accounts Receivable Cash Drawer Interface KIS 7`h Week $1,120.00 - Estimated Delivery of Modification: (3 Days) Accounts Receivable Classification of Invoices Placed with Collection Agencies KIS 8th Week $1,680.00 - Estimated User Training — Miscellaneous Invoicing and Accounts Receivable (1 Day) KIS / CY 9th Week $560.00 each day used (includes deposit) + travel expenses Validation: Begin Acceptance Test Period — Miscellaneous Invoicing and Accounts Receivable CY 10`h Week Data Conversion Fees * End Acceptance Test Period — Miscellaneous Invoicing and Accounts Receivable CY 14`h Week 20% Product License Fee: $1,920.00 Live Use — Miscellaneous Invoicing and Accounts Receivable CY 14`h Week Begin Software Maintenance Coverage — Miscellaneous Invoicing and Accounts Receivable CY 18`h Week $ — Prorated for Fiscal Year Product Review Meeting — Budget Preparation (1 Ray) KIS t Cl' TBD, $56G_M each day :. Used. (includes deposit) + travel expenses Delivery of Authorization Documents KIS Authorization to Proceed CY Delivery of Data Conversion KIS Delivery of Modifications KIS User Training — Budget Preparation (1 Day) KIS / CY TBD $560.00 each day used (includes deposit) + travel expenses Validation. Begin Acceptance Test Period — Budget Preparation CY Data Conversion Fees * End Acceptance Test Period — Budget Preparation CY Live Use — Budget Preparation CY Begin Software Maintenance Coverage CY $ — Prorated for Fiscal Year * Fees for data conversion will be billed per file as completed. Terms Reference. Each Product (Application Area) goes through the following process' 1 Product Review' Charged against pool of days for that application. This is a thorough review/demonstration meeting with project leaders and appropriate personnel to make decisions Keystone Information Systems, Inc. Page 12 City of Yakima with regard to implementation and use of the installed module The process will identify forms and reports needed; formulate functional specifications for necessary modifications to software; and to gather and review data intended for electronic conversion. 2. Authorization Documents (Also Review Documents). Detail the findings of the Review Meeting, itemizing requested Modifications, data to convert, and report/form formats, with their associated costs, for acceptance or waiver. This document also refines details of any Modifications previously quoted and refines the Implementation Schedule, as appropriate. 3 Authorization to Proceed All work is contingent upon formal sign -off Delay in so doing may alter delivery time frames. 4 Data Conversion. Time allotted for Seller to perform data conversions. 5 Modifications Time allotted for Seller to construct Modifications 6. Validation. Time allotted for Buyer to verify converted data and/or installed Modifications. 7. Training. Time allotted for user training, with necessary modifications operating, data installed, tables set-up, etc. Charged against pool of days for that application Keystone Information Systems, Inc. Page 13 City of Yakima Appendix A Seller Provided Software Modifications This form will be used for the specification and approval of all Software Modifications not specifically enumerated at time of execution of this Agreement. statement of work CLIENT NAME: DOC. NO.: PROJECT NAME: PROJECT NO.: REQUESTED BY: DATE: This Request Amends Agreement No.: Change No.: Description of Change: Programs Affected ESTIMATED CHANGE REQUIREMENTS: Hours of Design and Coordination Hours of Coding Hours of Testing Estimated Cost Hours of Documentation Hours of Other Client P. O. No.: Estimated Completion Date based on Client Sign -off on or before CLIENT APPROVAL Keystone Information Systems, Inc. Page 14 City of Yakima Approved By: Title: Date: KEYSTONE APPROVAL Approved By: Title: Date: Keystone Information Systems, Inc. Page 15 City of Yakima August 28, 2001 Mr. Rick Pettyjohn City of Yakima 129 North 2"d Street Yakima, WA 98904-2632 Dear Mr. Pettyjohn: With regard to our previously presented proposal we would like to submit the following clarifications and re- distribution of estimated service estimates. The information below is reflected in the Itemization of Products and Services (Schedule 1) in the updated contract we have submitted. Based on the City's initial intentions to initially implement something less than full capability for all the sub - modules contained in our Financials product, we believe that training should be accomplished in less than the noinially prescribed number of days. Specifically we would expect to reduce training by 2 days by virtue of not fully implementing the purchase order, invoice entry and accounts payable and cash disbursements processing programs. We would recommend that these days be reassigned to additional report writer training and assistance to the City's staff in start-up efforts to reproduce currently processed accounting and budget reports. Additionally, based on what is expected to be a reduced conversion effort (based on lack of need to convert certain data and forms such as purchase orders and check formats) we anticipate that data conversion can be achieved in approximately 5 days less than the 13 days initially allocated to data conversion. We would recommend that these 5 days be allocated to consultation and definition of required external software interfaces. With regard to our initial proposal and our subsequent discussions, we continue to recommend that a budget of 20% (approximately $10,000.00) of the identified project cost be established by the City to cover items that are not specifically definable until the project has commenced. These would include actual production of required software interfaces to the City's other installed software and hardware products, production of specific City reports, and any other modifications the City may deem beneficial. Please note that with regard to the above mentioned interface programs and specific reports, these are especially considered to be "joint effort tasks" in conjunction with the City MIS staff. We are confident that the amount of Keystone service time proposed, when combined with the related efforts of the City staff, should be adequate to complete a successful installation. Since Keystone's billing will be based on a service days "as actually supplied" basis, the City should be in the position to control the total amount due to Keystone, based on the ratio of tasks allocated to it's own MIS staff. Included below is a further clarification of software capabilities specifically identified in our demonstration and discussions and how these capabilities would relate to our contract agreement. All of the items below specifically apply to our proposed Miscellaneous Invoicing and Accounts Receivable software module. All other specialized software capabilities desired by the City (such as interfaces to other software products, or equipment or specific desired reports) beyond those that have been demonstrated would be produced via utilization of the recommended 20% change order (Work Statement) budget and/or via the City's staff following appropriate training provided by Keystone as to the use of our proposed products. 1. Need for recurring invoice creation, printing and tracking No Charge — See below The city has invoicing requirements whereby in multiple instances, a particular service or fee is billed to a specific group of customers. This charge will be billed again repetitively (i.e., again each quarter) to essentially the same group of customers. Since these groups of customers can reach numbers of 100 and greater, it is desirable not to have to re-enter each individual invoice on each billing occasion, but rather to have a method where entire related groups of recurring invoices to the same customers can be produced with minimal entry. Keystone Information Systems, Inc. Page 16 City of Yakima This "recurring invoice" capability is one that has previously identified by Keystone and our users as an intended enhancement to our Accounts Receivable module; as such we will provide a basic capability to our standard module prior to, or in conjunction with the City's implementation, under general version maintenance release and at no charge to the City. The software provided will enable the designation (identification code field) of invoices, or customers as earmarked for repetitive billing. Ability will be provided to add or delete new invoices / designations as required prior to automated production of invoices. Identification will also be provided to stipulate a type of service involved so that groups may be selected for billing as appropriate. Likewise an ability will be provided to enter a standard statement prior to printing that will appear on all the invoices in the group being invoiced. Any accommodations required beyond those described above would be provided under standard provisions for chargeable authorized customer Work Statements. 2. Ability to post both previously billed (miscellaneous accounts receivable module bills) payment receipts and non -billed (or billed through systems other than Keystone) receipts from within the same cash receipts program. No Charge — See below This "multi -type payment posting" capability is one that has previously identified by Keystone and our users as an intended enhancement to our accounts receivable module, as such we will provide a basic capability to our standard module prior to, or in conjunction with the City's implementation, under general version maintenance release and at no charge to the City. Ability, will be provided to enter a customer's payment as owing from a miscellaneous invoice produced on the Keystone system and complete and accounts receivable posting against the appropriate invoice. Capability will also be provided within the same entry program, to enter other types of payments, along with associated payee, and identify them by a classification code (i.e. G/L account code or abbreviated account code) as to the fee / item designation for the money being collected. These amounts will then be totaled and printed upon daily close-out /posting so as to provide source for input of posting amounts into other accounting systems where applicable. 3. Identification of Accounts Receivable customer entries for invoice adjustments and / or write-offs No Charge — See below As a result of our discussion regarding this capability (Miscellaneous accounts receivable adjustment type identification), we are classifying this capability as a new intended enhancement to our Accounts Receivable module as we will provide a basic capability to our standard module prior to, or in conjunction with the City's implementation, under general version maintenance release and at no charge to the City. Added to the program will be a table driven field to codify a transaction as an adjustment, and /or write-off and attach a specific description if desired. Ability to complete these types of entries will be limited only to designated users via system security provisions. 4 Need to designate by type of transaction, whether General Ledger revenue account posting should occur when bill is created, or when payment amount is received. Partial charge estimated at $1,600 — See below As a result of our discussion regarding this capability (revenue posting transaction designation), we are classifying this capability as a program option within our Accounts Receivable module. This capability might be of use to some other Keystone customers; as such we will provide a basic capability to our standard module in conjunction with the City's implementation, under general version maintenance release. We will bill only 50% of the time utilized to produce this modification up to an amount not to exceed $1,600 Added to the program will be the ability to associate a default code for (bill on invoice or bill on payment) with each type of service code billed when invoices are produced. This code field will permit customer override on any given invoice entry as desired. Keystone Information Systems, Inc. Page 17 City of Yakima 5. Cash Drawer interface to control cash drawer including ability to display amount of change due back to customer. Estimated cost is $1,600 This capability will be designated as an identified modification in the contract. The City staff will supply Keystone with cash drawer product information including necessary ASCII character "escape codes" for drawer control. 6. Customer / Invoice Classification as Turned over to Collection Agency Estimated cost is $2,400. This capability will be designated as an identified modification in the contract. The capability will be added to enter a classification code that amounts owed by customer have been turned over to collection agency and produce report by agency indicating customer amounts and associated dates that have been given to the agency for collection. Hopefully the above infounation above along with our related contract will prove sufficient to enable you and the City to move forward with the authorization of this project. Please note that receipt of a signed contract and required 30% deposit is required in order to obtain a secured commitment from Keystone to begin the project. If there are any further issues please notify me at once so that I may respond, since time is now becoming a critical factor if we are to meet your expectations for a January 2002 system cutover. Sincerely, Charles D. Hensley Sales Manager, Keystone Information Systems, Inc. Government & Education Systems Keystone Information Systems, Inc. Page 18 City of Yakima Appendix B SOFTWARE LICENSE REDESIGNATION FORM Buyer's Permissionto Re -locate Seller Proprietary Software Buyer has ne gotiatedwith Selbr a fixed amount for the tra afer of License of twenty-five percent (25%) or fifty percent (50%) respectively (bated on the cribria setforth herein) of the initial License purchase amounts paid by Buyer regardless of changes in general pricing made by Selbr The availability of License for Software Prodnct(s) made avaiable to Buyer will be subjct to Seller's general avaiable offering at the time of the desied relecationof Software This form is used to redesignate Software Product Licenses to operate on other Computer Equipment. The original Software License specifies a non-occlusive, non -assignable License for use on a designated central processing unit(s). To redesignate Licensed Software Products to other Equipment, this form must be submitted to Keystone, with the appropriate fees, and will reference the terms and conditions of existing Software License. INITIAL USER/PROCESSOR Organization Name Name of Customer Address Address of Customer Contact Name Telephone CPU Type/Model on which licenses were granted under original Software License Agreement: (Insert Type/Model) The terms and conditions of the previously executed agreement(s), dated remains in effect. Licensed Software. Products Names 116. Revision Numbers UPGRADE/NEW/ADDITIONAL PROCESSOR CPU Type/Model the Software Product will be used on (Insert Type/Model) CPU Serial Number the Software Product will be used on To Be Completed Later By signature, Buyer agrees to terms and conditions of the originally executed License agreement referred to above and to operate Licensed Software Products only on the CPU(s) herein designated. Keystone Information Systems, Inc. Page 19 Client. Keystone Information:: Systents • Signature Printed Name Title Date Redesignation Fee $ Keystone Information Systems, Inc. Page 19 City of Yakima FEES FOR SUBSEQUENT RELOCATION OF KEYSTONE APPLICATION SOFTWARE The chart below is included to show Seller's standard policy for the reassignment of Seller's Application Licenses to a Computer System (one or more central processing units and associated peripheral Equipment) other than the one(s) originally designated for the License as provided for under contract agreement between Buyer and Seller. The areas with which costs are associated in relocating Seller's Application Software from one Computer System onto another fall into two categories: a. Software Re -Licensing or Re -Hosting: Provides for Buyer to legally re -designate the Computer System on which Seller's Software Products are to continue to be operated. These differ in that they are employed based upon Seller's ability to benefit from the sale of new Computer Products to be designated in the Re -license. b. Re -Hosting Services: These are the Services associated with any technical effort which is applied to the conversion/migration of the Application Software programs and/or data to a different type of Computer System, (one which is running a different database and/or Operating System). These charges are quoted by Seller as appropriate to each technical effort. Seller has the option to discontinue License Service if it does not wish to support a new platform to which Buyer is Relocating Software. In the event that Seller takes this option, it must notify Buyer within thirty (30) days of Buyer's notification to Seller of planned Software Relocation, and in such case, Seller is not eligible to collect a Relicensing fee. • The purchase of Rehosting Services is in addition to Relicensing or Rehosting fees. Keystone Information Systems, Inc. Page 20 RE -HOSTING FEE RE -LICENSING FEE COMPUTER SYSTEM./ OPERATING SYSTEM PROCURED COMPLETE CONFUTER SYSTEM(S)°PURCHASED FROM SELLER COMPLETE COMPUTER SYSTEM(S) ISNOT PURCIIASED FROM SELLER PROCESSOR CHANGE TO ONE WHICH IS BINARY COMPATIBLE WITH ORIGINAL PROCESSOR AND REQUIRES NO SOURCE CODE ALTERATION. N/A N/A PROCESSOR CHANGE WHICH IS NOT BINARY COMPATIBLE AND REQUIRES ALTERED OR RECOMPILED VERSIONS OF SOFTWARE SOURCE CODE. * 25% 50% 2ND, 3RD, 4TH, 5TH, ETC. CPU WITHIN SAME SERIES/OS. (DUPLICATE COPIES OF THE APPLICATIONS LICENSED) 25%, 20%, 15%, 10%, THEREAFTER 50%, 40%, 30%, 20%, THEREAITER Seller has the option to discontinue License Service if it does not wish to support a new platform to which Buyer is Relocating Software. In the event that Seller takes this option, it must notify Buyer within thirty (30) days of Buyer's notification to Seller of planned Software Relocation, and in such case, Seller is not eligible to collect a Relicensing fee. • The purchase of Rehosting Services is in addition to Relicensing or Rehosting fees. Keystone Information Systems, Inc. Page 20 City of Yakima Appendix C Third Party Software Product Licenses and Warranty Terms Existing license for IBM's UniData and Blacksmith Corporation's FUSION Products already in place. Keystone Information Systems, Inc. Page 21 City of Yakima Appendix D Seller Software Products - License Service Terms and Conditions By annual pre -payment of the Maintenance Fees, Buyer and Seller acknowledge understanding of these provsions governing the conthued use and maintenance of the applbable Product(s) The term of this Service is one (1) year, begiming at the end of a Product warranty period, and will conthue on an annual basis provided Buyer shall pay the thenprevailing Maintenance Fee for the Product(s), and not exercise its right to cancel this Service Buyer may cancel this Service only by providing written notice to Seller at least sixty (60) days prior to next renewal. Cancellation will take effect on that next renewal date Seller reserves the rightto alter the pricing or terms and conditions of this Service at the time of each annual renewal, by presenting such revid prichg and/a- terms at least ninety (90) days prior to the date of renewal. Seller may elect to cancel the Servbes proviled hereh by providing Buyer writtn notice of its intertion to do so at leastone hundred eighty (180) days prior to the date of renewal. The services provided under License Service fall into three related categories: I Warranty Extension: Payment of Maintenance Fee associated with each Product, extends the term and conditions of the original purchase agreement warranty for that Product, without time limit, so long as this service coverage and its renewals are in effect. Warranty is for standard version, unmodified code as was delivered by Seller originally, and for subsequent revisions and updates provided by Seller to standard version of Product as defined below In cases where support or warranty service is required related to code which has been modified by Buyer or any third party, without the specific approval of Seller, Seller may, at its sole option, charge for services provided. Custom modifications made by Seller for Buyer which are not adopted into standard Product release may not be covered under the terms of this support contract but will carry the warranty associated with such technical services. 2. Support Services: Payment of Maintenance Fee associated with each Product provides Buyer with unlimited access, by telephone, to Seller's Client Care Services between 8:30 a.m. and 5.00 p.m. ET, Monday through Friday, with the exception of Seller observed holidays, or during extended hours if specified on billing, for the purpose of further understanding the operation of Product, or to request warranty services. Buyer must register each request with Client Care personnel, in as much detail as possible to permit assignment by Seller of appropriate technical personnel. Client Care personnel will track the issue with the assigned Seller personnel, until its completion and acceptance by Buyer Client Care personnel will be responsible for communicating with Buyer personnel assigned as primarily responsible. All support calls must be logged by Client Care personnel regardless of other communications Buyer personnel may have with other personnel of Seller Each call will be assigned a level of urgency agreed to between Buyer and Seller, with associated maximum response time defined by such level. Seller will approach reported problems with Product with the degree of attention appropriate to the problem. If the problem impedes critical processing, Seller will correct the problem as soon as reasonably possible and provide correction to Buyer If the problem is less severe, it may, at Seller's option, be addressed through normal Product Revision and Update release cycle, further defined below Support Services under License Service may be provided in any one of the following manners all of which Buyer deems to be reasonable and will accommodate: a. Through instruction over the telephone to assigned Buyer responsible personnel. b. Through modem with Product access granted by Buyer. c. On site, if provision of the required services is, in Seller's opinion, most efficiently accomplished by being in the physical presence of the computer equipment, Buyer personnel, or for another reason. In the case of Services covered under this Agreement, for which Seller sees fit to perform services at Buyer's location not due to circumstances caused by Buyer, no addition cost will be assessed to Buyer Seller will always be reimbursed for its out of pocket expenses (Additional Charges) incurred in providing services at the Buyer's location when services are requested by Buyer to be provided on-site, and in Seller's opinion could have efficiently been accomplished remotely, or when services were required on site due to Buyer's action or failure to implement instruction provided over the telephone. Telephone access to Seller by Buyer is to be made by Seller's normal telephone numbers. Seller will allow Buyer use of a toll free telephone line for the term of coverage with payment of the associated annual amount. 3 Product Revision and Update: In addition to warranty extension, instruction and correction of errors, as provided for above, at any time while Buyer is under the terms of License Service, if Seller invents, develops or in any way creates changes, improvements or expansions (collectively, Enhancements) in a licensed Product, which are not, in Seller's judgment, separately purchasable product, Seller will apprise Buyer of the availability of such Enhancement Releases within a reasonable time after they become available for use in conjunction with or in place of existing Product. If requested, Seller will provide such Enhancements to Buyer, without charge, in machine readable format on magnetic tape, or over modem transmission, with associated instructional materials. Seller agrees to provide Buyer with all reasonable assistance required in installing Enhancement Releases via telephone contact through Support Services described above. Depending on the degree of customization in place in Buyer's existing Product version, or the period of time from the last update to a regular Product Enhance-ment Release, the technical effort required to install an Enhancement Release will vary among Buyers. Any further effort required from Seller, including but not limited to installation, interfacing, retrofitting, or conversion of existing Seller data or otherwise rendering the Enhancement Release useful to Buyer, or any Additional Charges associated therewith, (including travel for on-site services,) and any training in differences between old version and Enhancement Release, will be quoted by Seller and may be charged for at Seller's option, at Seller's then prevailing prices, policies and terms, which reasonable charges Buyer agrees to pay Training in current Product versions will be offered at Seller's location, twice annually, free to Buyers under License Service (if sufficient interest from Buyers is expressed.) One such training is usually held in conjunction with the annual Users Conference, (if sufficient interest is expressed from Buyers.) If the timing of these classes coincides with the upgrade Keystone Information Systems, Inc. Page 22 City of Yakima installation, the cost of Seller training services may be saved (only the cost of travel expense of Buyer personnel will exist.) Premium Upgrade Service Option: Eligible Buyers may elect an additional fixed rate service offered on an annual billing which will cover certain upgrade services between standard versions. These services include data movement, custom forms interface and user training in the Enhancement Release differences, exclusive of necessary revisions to operating systems and of travel related expenses for Services more practically provided at Buyer's location. To be eligible to elect this additional coverage Buyer must already be on a certified current release of Product, which is under release control (accepting periodic "dot release" updates,) and not modified away from standard. Eligible Buyers will be given the opportunity to purchase this additional fixed rate service coverage on annual billing. Seller will take reasonable care to incorporate modifications made to a Product for Buyer, or by Buyer under the direction of Seller, into the standard Product, and to place those modifications which cannot be so incorporated into a "custom modification library" to reduce installation costs associated with Enhancement Releases. State and Federally mandated changes to Product may not be covered under this service depending upon the scope of the change required. Seller reserves the right to estimate the total cost of the technical effort required to implement such change, and to assess a fee equally dividing that cost among all Buyers of such Product as will require and desire installation of such mandated change. Neither standard nor Premium Upgrade service includes custom programming or modification work by Seller, which will be quoted and provided under the terms of Seller's professional technical services. Buyer Responsibilities: I Payment of all invoices due hereunder, within 30 days. Any undisputed invoices, not paid after sixty days will place Buyer on "credit hold" status and may restrict access to the services identified herein. 2. Back up of system, programs and data as instructed by Seller 3. Acquisition of all operating supplies for systems. 4. Designation of "primary contact" personnel in each major application area to serve as liaison to Seller personnel for these services. 5 Obtain reasonable instruction in the presence of Seller's instructor before beginning operation of an Enhancement Release. Failure to do so and abuse of telephone support services for training "on the fly" will be justification for Seller to assess training fees which would reasonably have been incurred for such Enhancement Release. 6. Similarly, to properly train, or have Seller train Buyer personnel new to operation of the Products. 7 Guaranteed system access to Seller through a modem compatible with Seller's standard. 8. Use of Client Care procedures for logging requests, including submission of written, supporting data as Seller may reasonably request. The obligations stated here are the sole obligations for the breach of any warranty related to software license service. The total liability, if any, of Seller or its suppliers, however caused, or occurring out of or in connection with the distribution, use or performance of the licensed Product shall not exceed the Maintenance Fees paid in a single term. Seller, its affiliates and suppliers shall not be liable to Buyer or any other person for loss of profits, revenue, goodwill, loss or inaccuracy of data, for indirect special, incidental, consequential or punitive damages based on contract tort, breach or warranty, negligence, strict liability or any other legal theory, even if Seller has been advised of the possibility of such damages. Recertification. Should Buyer have a lapse in License Service through non-payment of Maintenance Fees, for a period of greater than sixty days, Seller shall have the right to charge a Recertification Fee before again accepting standard License Service terms. The Certification Fee shall be equal to one twelfth of the Maintenance Fee for each month, or portion thereof, of the lapse in coverage. Schedule of Maintenance Fees .Software Product Annual :Maintenance:Fee Financials Release 9 0 84 666.00 Accounts Receivable Release 9 0 2,488.00 Total Annual Maintenance Fees $7,154.00 Optienat:l roduets;and`Setvices. IBM UniData RDBMS License $72.00 per user Blacksmith FUSION GUI License $35.00 per user Keystone Information Systems, Inc. Page 23 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of 10 - !!v-01 ITEM TITLE: A Resolution Authorizing Execution of Software License & Professional Services Agreement to Upgrade the Financial Management System SUBMITTED BY: Rita Anson, Finance Director CONTACT PERSON/TELEPHONE: Rick Pettyjohn, Information Systems Mgr (509) 575-6098 SUMMARY EXPLANATION: The City's current Financial Management System (FMS), consisting of the General Ledger, Budget Preparation, and Miscellaneous Accounts Receivable modules, is more than ten years old and is the last vendor -provided system still operating on the Prime computer. The Prime computer is also over ten years old and utilizes an obsolete and unsupported technology. It is becoming increasingly difficult and expensive to obtain reliable maintenance and repair services for the Prime. It is imperative that we migrate the FMS from the Prime to the City's DEC Alpha computer. The City's FMS is owned and supported by Keystone Information Systems. The City has negotiated the attached contract with Keystone to provide an FMS migration service from the Prime computer to the DEC Alpha computer consisting of upgraded software, data conversion, and implementation services. Resolution X Ordinance Other (Specify) Contract X Mail to (name and address): Mr. Judson B.Van Dervort, Jr., Keystone Information Systems, Inc., 1000 Lenola Road, Maple Shade, NJ, 08052 Phone: (856) 722-0700 Funding Source General Fund APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2001-142 Keystone Information Systems owns the license for and directly markets the City's FMS and the upgraded FMS software. Keystone is, therefore, the sole source for this FMS migration service. The 2001 Information Systems budget contains an appropriation for these services. The Total Software and Associated Service amount is $53,200. The Information Systems 2001 year-end estimate also includes a 10% contingency fund for this project for a total projected cost of $58,520.