HomeMy WebLinkAbout10/07/2008 14 City Jail Commissary Services Agreement with Swanson Services Corporation •
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
III AGENDA STATEMENT
Item No. ' 14
For Meeting of October 7, 2008
ITEM TITLE/ Consideration of a Resolution Authorizing the City Manager to enter into an agreement with
Swanson Services Corporation to provide commissary services and other items to the
residents of the Yakima City Jail with the fees to be charged to those residents' accounts.
SUBMITTED BY: Chief Samuel Granato, Yakima Police Department
CONTACT PERSON/TELEPHONE: Chief Samuel Granato - 575 -6211
Lt. Gary Belles - 576 -6547
Lawrence Wafters - 575 -6030
SUMMARY EXPLANATION:
Efficient commissary services are an essential part of effective jail operations, providing desirable goods
and services to the inmate population, while simultaneously generating revenue for the purpose of
upgrading facility conditions to benefit those same inmates. Further, the ability to earn commissary
privileges creates an incentive for good behavior on the part of inmates. Swanson Services Corporation
has demonstrated a proven ability to provide a high quality of commissary services•to the Yakima City Jail
for several years. Council authorization for the City Manager to enter into the proposed agreement on
behalf of the City will provide for a continuation of those services, together with upgrades to the
commissary record keeping system that will increase the efficiency of record entry and maintenance and
relieve the City of Yakima of the responsibility to pay for the maintenance of system hardware. This
improvement is being made possible by a change from an in- house, hard wired computer to an Internet
based system that will be maintained entirely by the vendor. These upgrades come at no additional cost
over that of the preceding agreement
Resolution X Ordinance Other (Specify)
Contract Mail to (name and address):
Phone:
Funding Source Inmate Welfare Fund (self sustaining)
APPROVED FOR SUBMITTAL: �� j,
City Manager
STAFF RECOMMENDATION: Staff recommends the Council adopt the attached resolution authorizing
the City Manager to enter into the proposed service agreement with Swanson Services Corporation.
BOARD /COMMISSION RECOMMENDATION:
COUNCIL ACTION:
III
• RESOLUTION NO. R-2008-
A RESOLUTION authorizing and directing the City Manager of the City of Yakima
to execute a service agreement with Swanson Services Corporation
to provide commissary services and other items to the residents of
the Yakima City Jail with the fees for said commissary services to
be charged to the Jail residents' accounts.
WHEREAS, efficient commissary services are an essential part of effective jail
operations, providing desirable goods and services to the inmate population and generating
revenue for the upgrading of facility conditions for the benefit of the inmate population; and
WHEREAS, the ability for inmates to earn commissary privileges provides an
incentive for good behavior during periods of incarceration; and
WHEREAS, Swanson Services Corporation has demonstrated a proven ability to
provide a high quality of commissary services to the Yakima City Jail over an extended
period of time; and - — - - - _ .. - - - -
WHEREAS, the proposed agreement will provide for upgrades to the
commissary record keeping system that will increase the efficiency of record entry and
maintenance; and
WHEREAS, the proposed agreement will relieve the City of Yakima of the
existing responsibility to pay for the maintenance of system hardware through conversion
to an internet based system that is maintained solely by the vendor, and
WHEREAS, the proposed agreement provides these improvements without any
added cost to the City of Yakima; and
WHEREAS, other vendors do not currently possess knowledge or understanding
of the commissary operations of the Yakima City Jail; and
WHEREAS, the proposed agreement will provide for uninterrupted service that
cannot be achieved with a change of vender; and
WHEREAS, the prior service agreement expired in July of 2007 and service
since that time has been provided under the ongoing terms of the contract; and
• WHEREAS, the City Council deems it to be in the best interest of the City to
contract with Swanson Services Corporation to provide the necessary commissary
services for the Yakima City Jail located at the City of Yakima Police and Legal Center
at 200 South 3` Street, Yakima, Washington, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
YAKIMA:
The City Manager is hereby authorized and directed to execute the attached and
incorporated Service Contract to be in effect from October 8, 2008 through October 8,
2011. The attached and incorporated Service Contract will provide for commissary
services and other items to residents of the Yakima City Jail with fees for said
commissary services to be paid by the jail residents receiving the services; the Service
Contract will also relieve the City of Yakima of the existing responsibility to pay for the
S maintenance of system hardware through conversion to an internet based system that is
maintained solely by the vendor.
Page -1
•
ADOPTED BY THE CITY COUNCIL this 7th day of October, 2008.
David Edler, Mayor
ATTEST:
City Clerk
Page -2
SWANSON SERVICES CORPORATION
SERVICE CONTRACT
THIS AGREEMENT, made this day of , 2008 by and between the
City of Yakima located at 129 N. Second Street, Yakima, WA, 98901 hereinafter referred
to as "Client" and Swanson Services Corporation with principal offices located at P.O. 60,
Denver, Colorado 80201 hereinafter referred to as "Swanson ".
WITNESS T0:
Whereas, Client desires to avail itself of Swanson's services and whereas Swanson
desires to provide such services to Client, now, therefore, in consideration of mutual
covenants and agreements hereto set forth, the parties intending to be legally bound,
hereby agree to as follows:
SECTION ONE: CLIENTS GRANT TO SWANSON
Client grants to Swanson as an independent contractor, the exclusive right to sell
commissary products and any other items which are charged to the residents account
balance, to the residents of Yakima Police Dept. /Jail located at 200 South 3 Street,
Yakima, WA, 98901. Such location referred herein as "premises ". Charges, by the
Client, to a resident's account for services the Client provides to such resident, are
excluded from this provision.
SECTION TWO: SWANSON'S RESPONSIBILITIES
A. Pursuant to the provisions of this agreement, Swanson will purchase and
maintain at high standards of quality, such mutually agreed upon number and type of
inventory items at mutually agreed locations for the sales of food products, non - alcoholic
beverages, tobacco products and other such articles and will keep such inventory
adequately serviced and supplied, with the appropriate merchandise in good quality.
Swanson warrants that initial price list is subject to ordinary price adjustment that, from
time to time, is necessary due to market factors beyond the control of Swanson during the
term of this agreement.
B. Swanson agrees to comply with all applicable Federal, State and Local laws and
regulations pertaining to wages and hours of employment.
C. All records will be kept on file by Swanson for a period of three (3) years from
the date which record is made, and upon reasonable notice, Swanson will give Client, or
Client's authorized representative the privilege, at a reasonable time, of inspecting,
examining, copying and auditing, during normal business hours, such of Swanson's
records which are directly relevant to clients purchases. The cost of such inspection,
examination or audit shall be the sole expense of Client. Such inspections shall take place
at the Swanson location where said records are normally maintained.
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® '
D. Shipment of orders will be FOB: Dock
E. Swanson agrees to provide phone support for Swanson's software on a 24 hour,
7 days per week basis.
SECTION THREE: CLIENTS RESPONSIBILITIES
A. It shall be the sole responsibility of Client to insure that Client's employees follow
and adhere to the accounting system provided by Swanson and operating procedures
presented during initial training provided by Swanson and outlined in the Swanson
Manual. This includes, but is not limited to, balancing cash drawers, daily trust fund
balancing, weekly trust fund balancing and monthly check book and bank reconciliation.
B. It shall be the sole responsibility of Client to train their replacement or relief
personnel in processing commissary and/or in maintaining the accounting system,
provided by Swanson. Under no circumstance will Swanson be responsible for the integrity
of the accounts or account balances maintained by Client. Should Client request additional
training and support of Swanson, such training and support will . be provided at a fee
mutually agreed to in advance, in writing, by the parties.
C. Client or Client's staff will adhere to mutually agreed to time frame for 0
commissary order and delivery procedures, where delivery to residents is provided by
Swanson staff.
D. Client shall promptly and in a timely manner notify Swanson of any changes, in
Clients hardware, software or operating procedures that, materially affect Swanson's •
hardware, software or Swanson's performance under this agreement. This would be non -
applicable if client's program is Remote Access Banking (RAB).
E. If Client delivers orders to the inmates, Client will accurately account for and
deliver commissary orders shipped by Swanson, notifying Swanson immediately of any
discrepancy.
F. With any interface. Client will insure that Client's hardware or software does not .
materially disrupt Swanson's hardware or software operating systems, files or file structure.
SECTION FOUR: FINANCIAL ARRANGEMENTS
A. Client agrees to reimburse Swanson each week for all purchases from
Swanson based on an invoice from Swanson.
B. Client is responsible for the payment of any sales, fees or other taxes
levied against the sales or performance under this contract.
fa
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C. Swanson agrees to remit any payments due Client within fifteen (15) days
following the end of Swanson's accounting period if applicable. (Retail clients)
D. Nothing in this agreement shall allow either party to withhold or refuse
payment of any money due the other party, or refuse performance under the terms of
this contract in the event a dispute over payment arises.
SECTION FIVE: INDEMNIFICATION AND INSURANCE
A. The parties shall indemnify each other against any loss, damage, injury or death
caused by the negligent acts or omissions by their agents or employees for losses,
damages, injuries or death caused by their negligence and arising out of the consumption
or use of the products sold; services provided, however, nothing contained herein shall
require the parties to defend or indemnify each other for losses, damages, injuries or death
arising out of the negligence of their respective agents or employees.
B. The parties' obligation to hold each other harmless pursuant to the Agreement
shall be dependent upon promptly notifying each other in writing of any such claims or
lawsuits against either Swanson or Client, but in no event not later than thirty (30) days
after the date of first receiving notice of such claim or lawsuit. Failure of the party receiving
Alk such notification, to notify the other party of any such claim or lawsuit within said thirty (30)
day period, shall relieve that party of any and all responsibility and liability under the
Agreement to Indemnify and hold harmless.
SECTION SIX: EMPLOYEES
A. Party's to this Agreement recognize that employees of Client are not employees
of Swanson and employees of Swanson are not employees of Client.
B. During the term of this Agreement and for a period of two (2) years from the
termination of this agreement or renewal or extension of this agreement, the parties agree
not to hire or offer to hire any employee or former employee of the other party, without the
express written consent of that party.
SECTION SEVEN: COMMENCEMENT
This Agreement shall become effective as of the commencement date of service
and shall remain in effect for three (3) years unless sooner terminated as herein provided.
The commencement date of this contract shall be the date of the last signature on pages
7 -8. It shall thereafter renew itself automatically for similar terms until notice of
termination, in writing, is given by either party by registered mail at least ninety (90) days
prior to the expiration of this Agreement, or any renewal term thereof.
•
Page 3 of 7
SECTION EIGHT: TERMINATION:
•
A. The following may not be a cause for termination of this agreement:
1. Any responsibility of Client referred to in Section Three: Responsibilities, of
this agreement.
2. Failure of any third party delivery service to deliver a Swanson shipment in a
timely and satisfactory manner.
B. This Agreement may only be terminated under the following circumstances:
1. Upon mutual agreement between the parties, or with ninety (90) days notice
in writing by either party.
2. For Cause, in the following manner:
a. If either party shall refuse, fail or be unable to perform any of the terms of
this agreement for any reason, other than excused performance stated in other sections of
this agreement, the party claiming such failure shall give the other party written notice of
such breach listing the event and necessary documentation supporting such breach.
b. Within 30 days, both parties shall meet and discuss the claimed breach ill
and set forth, a mutually agreed upon resolution to such breach and time -line for correcting
such breach satisfactory to both parties. Such resolution and time -line must be in writing,
agreed to and signed by both parties.
c. If, a mutually agreeable resolution is not reached, or if at the end of such
time line, agreed upon resolution and time -line are not met, either party may cancel this
agreement effective ten days (10) after the end of said agreed time line or failure to
mutually agree to a resolution.
C. Mitigated Damages:
1. Client agrees that Swanson must expend considerable time and resources in
the implementation, training and execution of this agreement and that cancellation, for any
reason, prior to completing the full term of this agreement, will result in Swanson suffering
substantial losses.
2. In the event of any cancellation or defacto cancellation, (whereby Swanson is
hindered in any way, or not allowed to perform and be paid for services to the fullest extent
and intent of the agreement); Client agrees that Swanson shall be entitled to mitigated
damages. Such mitigated damages are mutually agreed to as being equal to five (5)
percent of the sales remaining to be realized under this agreement.
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Unrealized sales shall be determined by calculating the weekly sales average experienced
in the preceding twelve months. Such annual sales average shall be utilized in determining
the total sales for the remaining years of portions of years of the term of this agreement or
extensions thereof.
Such mitigated damages shall be paid to Swanson within two weeks following date of
termination.
3. Should Client fail to compensate Swanson for its Sales and /or any mitigated
damages outlined herein, Swanson shall be entitled to one and one -half (1.5 %) percent
interest, per month on any outstanding balance owed Swanson.
SECTION NINE: INDEPENDENT CONTRACTOR RELATIONSHIP
It is mutually understood and agreed, and it is the intent of the party's that; subject,
- Where to the terms and conditions set forth in the direct sales to client financial
arrangement, if such is used, an independent contractor relationship be and is hereby
established under the terms and conditions of this Agreement; that employees of Swanson
are not nor shall be deemed to be employees of Client; and that employees of Client are
not nor shall they be deemed to be employees of Swanson.
el SECTION TEN: SWANSON'S TITLE TO THE SOFTWARE AND HARDWARE
A. All software installed by Swanson pursuant to the Agreement is proprietary,
copyrighted and a patent application on file with regard to, not only the software, but also
the operating technology involved in Swanson's services. This software and technology,
shall at all times, remain the property of Swanson, with title and all rights vested in
Swanson. Client shall have no property interest in said software and technology and shall
at all times protect such software and technology from copying, removal, tampering with, or
disclosure to other persons or companies, without the express, written consent of
Swanson. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Washington.
B. All hardware installed by Swanson shall remain the property of Swanson, unless
purchased by Client.
C. All Maintenance, repair, or replacement of hardware shall be the responsibility
of: Swanson.
SECTION ELEVEN: EXCUSED PERFORMANCE
In case performance of any terms or provisions hereof (other than the payment of
monies) shall be delayed or prevented because of compliance with any law, decree, or
order of any governmental agency or authority , either local, State, or Federal, or because
of riots, war, public disturbances, strikes, lockouts, differences with workmen, fires, floods,
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acts of God, or any other reason whatsoever which is not within the control of the party
whose performance is interfered with and which, by the exercise of reasonable diligence
said party is unable to prevent, the party so suffering may at its option suspend, without
liability, the performance of its obligations hereunder during the period of such suspension
of performance of duties hereunder.
SECTION TWELVE: ASSIGNMENT
Neither Swanson nor Client may assign or transfer this Agreement or any part
thereof without the express written consent of the other party.
SECTION THIRTEEN: ENTIRE AGREEMENT: WAIVER
This Agreement constitutes the entire Agreement between the parties with respect
to the provision of Commissary Services, and there are no other or further written or oral
understandings or agreements with respect thereto. No variation or modification of this
Agreement and no waiver of its provisions shall be valid unless in writing and signed by
the duly authorized officers of Swanson and Client. This Agreement supersedes all other
agreements between the parties for the provision of Services outlined herein.
SECTION FOURTEEN: NOTICES
All notices to Client shall be addressed to: All notices to Swanson shall be
addressed to:
Yakima Police Dept. /Jail Swanson Services Corporation
200 South 3 rd Street P.O. 60
Yakima, WA 98901 Denver, CO 80201
SECTION FIFTEEN: GOVERNING LAW
This Agreement shall be governed by the laws of the State of Washington and venue is
in the courts of Yakima County.
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• IN WITNESS WHEREOF, the parties hereto affirm that they have the authority to
execute this agreement on behalf of their respective entities for the entire term and
have hereunto set their hands and seals of the day and year first above written.
CITY OF YAKIMA, MUNICIPAL JAIL SWANSON SERVICES CORPORATION
By: By:
TITLE: CITY MANAGER TITLE: VICE PRESIDENT, OPERATIONS
R.A. ZAIS, Jr. CLAY P. KLING
•
(TYPED NAME OF OFFICIAL SIGNING) (TYPED NAME OF OFFICIAL SIGNING)
DATE: DATE:
•
•
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1 Exhibit B
FACILITY AUTHORIZATION AND DESIGNATION
Government Payment Service, Swanson and City of Yakima for the Yakima Police Dept /Jail (Facility),
hereby agree as follows:
1. Facility hereby designates Swanson as its agent to receive the Quick Collect/Quick Pay money transfers
from Senders. Money transfers sent by Government Payment Service and received by Swanson will be
held in trust for inmates of Facility and are without recourse to Government Payment Service.
2. Facility designates that all Quick Collect payments shall be sent by Government Payment Service to the
following bank account.
Bank Name and address:. Bank One, N.A.
111 E. Wisconsin Avenue, Milwaukee, Wisconsin 53202
Routing number: 075000019
Account number 660612540
3. Facility
Contact Eugene Shleyzer
Address PO Box 1306 Tallevast, Florida 34270
Telephone (941) 755 -9575
Email autocash @swansons.net
Tax ID No. 650264044
4. Government Payment Service's sole responsibility for damages for error, delay, or nonpayment, whether or
not caused by negligence (apart from Government Payment Service's responsibility to assure payment of
the principal amount accepted from Sender), shall be limited to a refund of the service fee paid in
connection with the affected transaction, and Government Payment Service shall have no liability therefore
to Swanson or Facility. Under no circumstances will Government Payment Service be liable to Swanson,
Facility or Senders for indirect, incidental, special, or consequential damages, whether or not they knew or
had reason to know that they might be incurred.
5. This Authorization and Designation shall continue and be binding until such time as a party hereto shall
notify the other parties that it is withdrawn or terminated.
Facility: Yakima Police Dept. /Jail, WA Swanson Services Corporation
By: By:
Its: Chief of Police Its:
Dated: Dated:
FORM (NSF01)
Revised 5.01.2006 -
Swanson Services Corporation
Cobra Banker® software
Contract Addendum
This addendum to the contract between Swanson Services Corporation & the City of Yakima,
Washington will provide Yakima Police Dept./Jail, with The Cobra Banker software and Services listed
below.
This service is in conjunction with the current commissary contract and services. This addendum will
run concurrent with the current contract for a period of three (3) years with automatic renewals for like
terms. All other conditions of the original contract will remain in place.
A. Swanson will provide, at no additional cost to the client, the following:
Remote Access Banker
Auto Cash •
- B. Client shall provide interne access, to be used exclusively for this/these functions, in orderfor
Swanson to provide 24/7 support; additionally, appropriate protections required forthis access
shall be provided by the client.
C. Ownership and all rights to the Swanson Overnite Commissary the Cobra Banker
Software shall remain at all times with Swanson and the Client shall protect such rights
against any attempts to copy or tamper with such software without the express written
consent of Swanson.
D. Upon completion of the terms of this contract all software shall remain the property of
Swanson.
City of Yakima, WA. Swanson Services Corporation
R.A. Zais, Jr., City Manager Clay Kling, Vice President, OPS
Date Date