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HomeMy WebLinkAboutRes1989-017 . . . Sponsored by: Royle CITY OF SEWARD, ALASKA RESOLUTION NO. 89-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A NOTICE OF INTENT TO AWARD PURCHASE CONTRACTS FOR THE PURCHASE OF COMPUTER HARDWARE AND SOFTWARE WHEREAS, to purchase vendors; and the city distributed a request for proposals computer hardware and software to certain WHEREAS, the city administration reviewed the proposals and programs offered and determined that the Digital comput- er hardware offered by Hamil ton/ Avp.et and the financial and accounting software package offered by Time1ine would best meet the city's needs; and WHEREAS, contracts for the purchase of the hardware and software have been negotiated by the city administration and reviewed and approved by the city attorney; and w~EREAS, the city is currently seeking proposals from firms interested in financing the purchase of the hardware and software through a lease or lease/purchRse agreement with the city; and WHEREAS, software will lease/purchase Rcquisition of the computer be contingent upon approval agreement; hardware and of a lease or NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The best interest of the city will be served by waiving formal bid procedures for the acquisition of computer hardware and software. Section 2. The City Manager is hereby authorized to issue an Intent to Purchase Digital Hardware to Hamilton/Av- net as set forth in the Agreement attached and incorporated herein as Attachment "A". Section 3. The City Manager is further authorized to issue an Intent to Purchase Computer Software to Timeline, Inc., as set forth in the Agreement attached and incorporat- ed herein as Attachment "B". and Section 4. The acquisition of the computer hardware software referenced in Sections 2 and 3 above is -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-017 conditional upon City Council approval of a financing package for the lease or lease/purchase of said computer hardware and software. Section S. This resolution shall take effect immedi- ately upon its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this ---13.....- day of "Fphrll"ry , 19 ~. THE CITY OF SEWARD, ALASKA AYES: NOES: ABSENT: ABSTAIN: GIESELER, DUNHAM, HILTON, MEEHAN, NOLL, O'BRIEN, SIMUTIS NONE NONE NONE ATTEST: APPROVED AS TO FORM: PERKINS COlE, Attorneys for the City of Seward, Alaska ':1.,:{~ ~,'1'JIlu~~ 7~ 11t~ ~a S. Murphy :-cMcf1AE~~ Frel'i. Arvidson City Clerk City Attorney (City Seal) -2- - - - - - - - - - - - . - - -- --- - - - ____ _""-_.11 _______ -- -- ---- - - ---. ------ - ---------- . - --_.------~ - - -------- ---.-- ---- - -- ------- - - -.- -- - -- - PROPOSAL c o M P u T E R rSELLERI ~ . City of Seward, Alaska P. O. Box 167 Seward, AK 99664 ~@lg)\5UWlSlUJ EEB 1 0 1989 ~ c.itY. of $ewan1 " Naslal ,-' QUANTITY I DESCRIPTION OF PRODUCTS I UNIT PRICE EXTENDED AMT DELIVERY 1 DV330Tl-AA MV3300, 12MB Memory, RF30 150MB Drive, TK70 Tape Cart., Ethernet Interface VMS License 10 User DECnet E/N License 1 DESTA-AA Thinwire Adapt $ 40,446 4,959 1,615 415 1,245 8,775 715 35 3,398 2,880 2,759 266 1 RF30-SA 150MB Disk Drive (300MB System Total) 1 CXY08-AA 8 Line Async Interface 3 VT320-XX Terminal 1 LG3l-A2 300LPM Printer w/cable 1 LA75-CA Dot Matrix Console PTR 1 10' Printer Cable 1 QA-001AA-AA VMS Extended Media and Documentation 1 QT-001AA-E5 VMS Update Services 1 DEPCA-SA 3 PC Ethernet Interface Boards w/License The terms and conditions on the reverse side are also a part hereof, including Seller's Limited Warranty and limitation 01 Liabilites (Item 5). The terms and conditions of sale set forth on the face and reverse sides hereof constitute an offer by Selier and may only be accepted on the exact terms set forth and no other terms and conditions shall be controlling. These terms and conditions supersede the terms and conditions of Buyer's purchase order or any other documents submitted by Buyer with respect to the Products described hereon. TERMS: 30 Days conditional on financing S ENdI2E~FfYs NET INSIDE Steve Burdick SALES CONTACi; Michael Carpenter WE THANK YOU FOR THIS OPPORTUNITY TO BID ON YOUR REQUIREMENTE AND LOOK FORWARD TO SERVING YOUR FUTURE NEEDS. BY. ,7/L/ V /~" ___-f<~< F.O,S,; HAC 005 CUSTOMER = = -= -=:=;;;:~...-:::;. - = : ~ = == = == ..-. -- ---- . - -....-------- - --------- - - --_.~------ - ~ =~~~=~~~ ~=~:~~==~~ ~ PROPOSAL c o M P U T E R (SELLERI ~ Page 2 City of Seward, Alaska P.O. Box 167 Seward, Alaska 99664 ~ QUANTITY I DESCRIPTION OF PRODUCTS I UNIT PRICE I EXTENDED AMT DELIVERY 1 BNE4C-02 Tranceiver Cable $ 55 24 74 3 BC16M-lS 15' PVC Cable w/Conn & Boot 2 H8225-A Thinwire Terminator 32 64 1 QA-OTLAA-H5 DECnet/PCSA Media & Doc. QBZP3-3Z DECnet/PCSA RTC Upd QA-A93AA-H5 MVAX Serv MSDOS Media & Doc. 689 1 97 1 597 1 QS938-SZ PCSA Installation Service SYSTEM TOTAL 4,600 $73,269 All pr1c1ng 1S firm for 30 days, terms are NET 30. All products are quoted FOB our p1a~t. All hardware proposed carries the following warranty option Warranty E - Basic System Support - Hardware installation - One (1) year on-site hardware support, 8 AM to 5PM, Monday through Friday, except locally observed Digital holidays next day response time. The terms and conditions on the reverse side are also a part hereof, including Seller's Limited Warranty and Limitation of Liabilites (Item 5). The terms and conditions of sale set forth on the face and reverse sides hereof constitute an offer by Seller and may only be accepted on the exact terms set forth and no other terms and conditions shall be controlling. These terms and conditions supersede the terms and conditions of Buyer's purchase order or any other documents submitted by Buyer with respect to the Products described hereon. TERMS: SALES ENGINEER: INSIDE SALES CONTACT: SEE PAGE #1 WE THANK YOU FOR THIS OPPORTUNITY TO BID ON YOUR REQUIREMENTS AND LOOK FOR~N~RE :EEDS BY ~ " L~_< / (7- ( ~ F.O,B,: HAC 005 CUSTOMER - =..- ,;;::====-==-...::===...=== - - ---- - - ---.------ - --- --- --- - - - - ---.---- -- ~ - . -------- ---.-- ---- - -- ------- - - -.- -- - -- - PROPOSAL c o M p u T E R (SELLERI ~ PAGE #2 . City of Seward, Alaska P.O. Box 167 Seward, Alaska 99664 ~ QUANTITY I DESCRIPTION OF PRODUCTS UNIT PRICE EXTENDED AMT I DELIVERY - Telephone assistance Critical on-site software support - Digital Software Information Network - Right to use new version of software The terms and conditions on the reverse side are also a part hereof, Including Seller's Limited Warranty and limitation of Liabilites (Item 5). The terms and conditions of sale set forth on the face and reverse sides hereof constitute an offer by Seller and may only be accepted on the exact terms set forth and no other terms and conditions shall be controlling. These terms and conditions supersede the terms and conditions of Buyer's purchase order or any other documents submitted by Buyer with respect to the Products described hereon. TERMS: WE THANK YOU FOR THIS OPPORTUNITY TO BID ON YOUR REQUIREMENT!' AND LOOK FORWARD TO SERVING YOUR FUTURE NEEDS. ES ENGINEER: INSIDE SALES CONTACT: SEE PAGE #1 Bv:L/L ~: :?- \ _. F.O,S,: HAC 005 ::;USTOMER . . . - .... --..- __. w .___.. __..". -_..1.'. __.".-_.. - --.... . .... TIMELlNE, INC. 3055 112th Ave. N.E., Suite 106 Bellevue, Washington 98004 FAX: (206) 822-1120 (206) 822-3140 FINANCIAL ACCOUNTING & DECISION SUPPORT SYSTEMS LICENSE AGREEMENT FOR COMPUTER APPLICATION SOFTWARE THIS AGREEMENT is entered into this day of , 19 , by and between TIMELINE, INC., a washington corporation, (herein "Licensor"), and THE CITY OF SEWARD ("Licensee"). Licensor and Licensee, in consideration of the mutual covenants stated herein, agree as follows: 1. License. Licensor hereby grants nontransferable and nonexclusive license(s) to Use each of the software program sources, binaries and/or object codes derived therefrom, listings, and other related optional materials developed by Licensor, as described in and for the price set forth in Exhibit I attached hereto (the "System") on a single computer system processor as designated in Exhibit I ("CPU") only at City Hall in Seward, Alaska. NO OTHER USE IS PERMITTED. 2. Definitions. For purposes of this Agreement, the following definitions apply: 2.1 Use. "Use" is defined as copying any portion of the licensed programs and/or optional materials, instructions or data from storage units or media into the CPU for processing. Licenses granted under this Agreement authorize the Licensee to utilize System and/or optional materials in printed form in support of the Use of such System. 2.2 Installation. Loading the module and demonstrating with test data that the substantially all the functions described on Timeline Standard Product Description ("SPD"). on Licensee's CPU module provides the then current 2.3 Acceptance. After installation, Licensee shall have forty-five (45) days for evaluation and acceptance tests. Licensee agrees a module shall be deemed accepted unless Licensee notifies Licensor in writing of an error in any licensed program which causes the program (i) not to operate as warranted and/or (ii) not to operate in accordance with the SPD and/or (iii) not to operate successfully with all modules/modifications previously licensed. Any problems found by Licensee or Licensor which materially and adversely affect the performance of the accounting functions listed in the column "Accounting Functions/Software Modules" on Exhibit I shall either be promptly corrected by Licensor or, at Licensee's option, be cause for termination of this Agreement. Problems found by Licensee or Licensor which do not affect the performance of the accounting functions listed will be addressed and resolved by Licensor and will not be justification for withholding acceptance or payment or cause for termination of this Agreement. PAGE 1 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD 3. Specifications/changes. Any changes to the software together with any additional costs thereof, or adjustments in delivery times, shall be by mutual agreement set forth in a written change order. Such change orders shall be signed by a duly authorized representative of each party, and shall be incorporated by reference therein. 4. Term. Each license granted is perpetual. Each System shall be granted under a separate license effective on the date of delivery and until Licensee notifies Licensor of discontinuance. Notice of discontinuance of any program license shall be deemed notice of discontinuance of any license for optional material obtained in connection with such program license. Notice of discontinuance of any or all licenses shall not terminate this Agreement unless specifically stated. 5. Use of Program. Each System license granted under this Agreement authorizes the Licensee to Use the System in machine readable form on the designated CPU. If the System will be used on more than one CPU, an additional license will be required for each CPU; provided, however, if the designated CPU is inoperative due to malfunction, the license shall be temporarily extended to authorize the Licensee to use the System and/or optional material, in machine readable form, on another mutually agreed upon CPU until the designated CPU is returned to operation. Licensee shall only Use such software to process its own records. 6. Charges. Licensee will reimburse Licensor for special or unusual expenses incurred at Licensee's specific request and which are incurred for services beyond those to be supplied by Licensor as part of thi s Agreement, in accordance with Licensor's established customary and reasonable rates in effect when services are rendered. 7. Additional Licenses. Licensee may order additional licenses for a previously licensed program and/or optional material as well as licenses. for other licensed programs and/or optional materials. Orders for additional licenses should reference this Agreement. Licensor will confirm such orders and grant additional licenses by supplements to this Agreement at the then published rates at the time of the order. Licensee's acceptance of future delivery of any licensed program or optional material from Licensor is conclusive evidence of Licensee's agreement the license for such program or optional material is governed by the terms of this Agreement. 8. Delivery. The system will be delivered based upon the payment, training and installation plan as provided in Exhibit I. 9. License Implementation Responsibilities. 9.1 Licensee shall assign a responsible person who shall be authorized to approve changes and contract modifications and a PAGE 2 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD responsible person to act as liaison with Licensor who shall be responsible for and have authority to: (a) obtain responses to all Licensor requests for information; (b) sign for Licensee on any changes relating to design, costs or delivery times; (c) sign documents evidencing Licensee's acceptance of the software; and (d) learn the operation of the System and the training of other Licensee personnel. 9.2 Licensee shall have all necessary information converted to machine-readable form on 5 1/2 floppy disk which are compatible with the System as described in the initial proposal. 9.3 The Licensee's designated is liaison person 10. Software Maintenance. Prior to the expiration of the warranty period, Licensee may elect to execute an annual software maintenance agreement in the form of that attached as Exhibit II. If Licensee does not so elect, Licensee will pay an out-of-service fee before Licensor will cover software under an annual software maintenance agreement; provided, however, that the out-of-service fee may not exceed what the Licensee would have paid had it elected to execute an annual software maintenance agreement prorated to the date of payment by Licensee of the out-of-service fee. 11. permission to Copy or Modify Licensed Programs. Licensee hereby acknowledges Licensor's copyright on the System and any part thereof and agrees to protect such copyright. Licensee shall not copy, in whole or in part, any licensed programs or optional materials which are provided by Licensor in printed form under this Agreement. Any licensed program or optional materials which are provided by Licensor in machine-readable form may be copied, in whole or in part, in printed or machine-readable form for use by the Licensee within the designated CPU, for archival or emergency restart purposes, to replace worn copy, to understand the contents of such machine-readable material, or to modify the licensed program as provided below, provided, however, that no more than two (2) printed copies and two (2) machine-readable copies will be in existence under any license at anyone time without prior written consent from Licensor. The original and any copies of licensed programs and/or optional materials, in whole or in part, which are made hereunder shall be the property of Licensor. The Licensee shall keep any such copies and the original at a mutually designated Licensee location, except Licensee may transport or transmit a copy of the original of any licensed program to another location for backup Use when requi red by CPU malfunction, provided the copy or original is destroyed or returned to the designated location when the malfunction is corrected. The Licensee may modify any licensed program and/or optional material, in machine-readable form, for his own use and merge it into another program material to form an updated work, provided that, upon discontinuance of the license for such licensed program, the licensed program and optional material supplied by Licensor will be PAGE 3 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD completely removed from the updated work and dealt with under this Agreement as if permission to modify had never been granted. Any portion of the licensed program or optional material included in an updated work shall be used only on a designated CPU for the Licensee's own records, and shall remain subject to all other terms of this Agreement. Licensee agrees to reproduce and include Licensor's copyright or ownership notice on any copies, in whole or in part, in any form including partial copies in modification of licensed programs or optional materials made hereunder, in accordance with the copyright instructions to b~ provided by Licensor as Exhibit III attached to this Agreement. Licensee agrees damages for breach of this covenant and Licensor's copyright will be difficult to determine and consents that this provision may be enforced by temporary or permanent injunction without the necessity of a bond. Such injunctive relief shall be in addition to and not in place of any remedies at law or in this Agreement. Licensee further agrees any revenue received by Licensee in violation of Licensor's copyright or this covenant shall be held by Licensee in constructive trust for Licensor. The parties agree the provisions of this paragraph are reasonable. However, should any court find any provision within this paragraph is unreasonable, then the parties agree this paragraph shall be interpreted and enforced to the maximum extent which the court deems reasonable. 12. Protection and Security. Licensee agrees not to provide or otherwise make available any licensed program or optional material, including but not limited to logic diagrams and source code, in any form, to any other person without prior written consent from Licensor. 13. Responsibilities of Licensee. Licensee agrees to comply with Licensor's instructions for management and use of the software licensed under this agreement including: (a) audit trail and operating methods; (b) backup plans in the event of malfunction of software or hardware; (c) procedures for security and accessing of input and output; and (d) procedures for protection of use, copying, modifications, and security of licensed programs and optional materials. Licensee agrees it will take appropriate action with its employees, by agreement or otherwise, to satisfy its obligations under this Agreement with respect to Use, copying, modifications and protection and security of licensed programs and optional materials. Licensee notes the System was developed at substantial expense and that great loss would result if the provisions of this license were violated. Licensee agrees to be fully responsible to Licensor for any loss or damage incurred by Licensor as a result of any reproduction, sale or other distribution of the System without the written consent of Licensor. PAGE 4 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD 14. Title. Title to and ownership of the System shall at all times remain with Licensor. 15. Risk of Loss. If any licensed program or optional material is lost or damaged during shipment from Licensor to Licensee, Licensor will replace the licensed program or optional material and program storage media at no additional charge to the Licensee. If any licensed program or optional material is lost or damaged while in the possession of the Licensee, Licensor will replace the licensed program or optional material at a charge for the program storage media. 16. Discontinuance. Within one (1) week after the date of discontinuance of any license under this Agreement, Licensee will certify to Licensor, in writing, that the original and all copies, in whole or in part, in any form, including partial copies in modifications, of the licensed program and optional material received from Licensor or made in connection with such license have been destroyed; provided, however, Licensee shall have a reasonable time not to exceed 90 days after the date of discontinuance of any license to utilize the licensed program and optional material for transfer of data to other software and/or hardware systems acquired by Licensee to perform the same functions as those licensed under this Agreement. 17. Warranty. Licensor warrants: 17.1 That each licensed System will conform to the then current Timeline standard product description ("SPD") when it is installed by Licensor on Licensee's system; 17.2 That any and all of the licensed Systems are genuine and the sole product of Licensor workmanship; and 17.3 The System against program errors for a period of ninety (90) days from the date of final payment is due on the applicable module. During the warranty period, for specified licensed programs, Licensor will provide programming services after delivery without additional charges, to correct program errors and issue corrected releases. Other than those provided in subsection 17.4 below, Licensor does not guarantee service results or represent or warrant all errors will be corrected. Licensor will verify Licensee-detected licensed program errors, provided the error can be recreated with the latest unaltered releases of the licensed program. Corrected licensed program releases may be issued. NO WARRANTY IS MADE ON ANY LICENSED SYSTEM WHICH IS MODIFIED BY LICENSEE IN ANY WAY. DISCLAIMER: THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. PAGE 5 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD Licensor's liability hereunder for damages, regardless of form of action, shall not exceed the charges paid by Licensee for the particular licensed program or optional material involved. Licensor will not be liable for any lost profits or for any claims or demand against Licensee by any third party. No action, regardless of form, arising out of the transactions under this Agreement, may be brought by either party more than two (2) years after the cause of action has accrued. IN NO EVENT WILL LICENSOR BE LIABLE FOR CONSEQUENTIAL DAMAGES EVEN IF LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 17.4 Based on information provided by Licensee, which Licensor believes is reasonably complete and accurate, and based on Licensor's examination of the proposed hardware and equipment purchases of Licensee, Licensor warrants the system licensed by this agreement will adequately perform the accounting functions listed in the column "Accounting Functions/Software Module" on attached Exhibit I. 18. Venue. This Agreement shall be governed by, construed and enforced in accordance with the laws of the state of washington, irrespective of the fact that anyone of the parties is now or may become a resident of a different state. Venue for any action under this Agreement shall lie in King County, washington. 19. Attorneys Fees. Should either party be required to file a legal action to enforce any provision of this Agreement, the prevailing party shall be paid its reasonable attorney's fees and costs by the other party. 20. Assignment. This License Agreement, all licenses granted hereunder and the System may not be assigned, sublicensed or otherwise transferred by Licensee without prior written consent of Licensor. No right to reprint or copy the System, in whole or in part, is granted hereby, except as otherwise provided herein. 21. Termination. In the event Licensee neglects or fails to observe any of its obligations under this Agreement (other than Chapter 11 involuntary bankruptcy), and if such condition(s) is (are) not remedied within ten (10) days after written notice thereof has been given to Licensee, the License Agreement and all licenses granted hereunder as to the Licensee shall immediately terminate. 22. Nonhiring of Employees. Licensee and Licensor agree not to employ any then current employees of the other. 23. Entire Agreement. This Agreement (and any attached exhibits), contains the entire agreement and understanding of the parties with respect to the entire subject matter hereof and there PAGE 6 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD are no representations, inducements, promises or agreements, oral or otherwise, not embodied herein. There are no conditions precedent to the effectiveness of this Agreement other than as stated herein and there are no related collateral agreements existing between the parties that are not referenced herein. 24. invalid, validity any way, validity. In case any term of this Agreement shall be illegal, or unenforceable, in whole or in part, the of any of the other terms of this Agreement shall not, be affected thereby. in 25. Notices. Any notices required or permitted under this Agreement shall be in writing and delivered in person or sent by registered or certified mail, return receipt requested with proper postage prepaid, properly addressed as set forth below. Notice shall be effective when mailed or upon delivery if delivered in person. If to Licensor, address to: President Timeline, Inc. 3055 112th Avenue N.E., Ste. 106 Bellevue, WA 98004 If to Licensee, address to: Name Title city of Seward Corner of 5th and Adams PO Box 167 Seward, AK 99664 IN WITNESS WHEREOF, the parties hereto have signed this Agreement the day and year first above written. LICENSOR: TIMELINE, INC., a Washington corporation By Its LICENSEE: THE CITY OF SEWARD a corporation By Its PAGE 7 . . .. LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT I - SOFTWARE Timeline will provide the products and services listed in this Exhibit for the designated single computer system processor as described in paragraph A of this Exhibit. City shall be solely responsible for all costs associated with the purchase and installation of the Hardware described in paragraph A which is being purchased to perform the accounting functions and run the program modules listed in Paragraph B. A. HARDWARE: CPU: MicroVAX II Model 3300 (DV-330T1-AA), including MV3300, 12 MB Memory, RF30 150 MB Disk Drive; TK70 Tape Cartridge, Ethernet Interface; VMS License for 10 User DECnet E/N License. Additional Equipment: RF30-SA 150 MB Disk Drive for a system total of 300 MB CXY08-AA 8 Line ASYNC Interface VT320-XX Terminal (3) LG31-A2 300 LPM Printer with cable LA75-CA Dot Matrix Console Printer DEPCA-SA Three PC Ethernet Interface Boards with License Misc. cabling/adaptors Software/Services: QA-001AA-AA VMS Extended Media and Documentation QT-001AA-E5 VMS update Service QA-OTLAA-H5 DECnet/PCSA Media & Documentation MVAX Serv MSDOS Media and Documentation QS938-SZ PCSA installation service Networked PCs Compaq Model 2551 MS-DOS Personal Computer Compaq Model 2570 MS-DOS Personal Computer The City intends to access the CPU for the accounting functions/ programs listed in Paragraph B below through both the dedicated terminals and those networked through a Local Area Network. PAGE 8 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT I - SOFTWARE B. SOFTWARE: Accounting Function/ Software Module Software License Software License 25% Discount General Ledger & Financial Reporting Accounts payable DIGIBASE DIGICALC Vsort/Select(3) Purchase Order Fixed Assets Inventory Control payroll/Personnel utili ty Billing TOTALS: $20,000 10,000 6,000 2,500 1,750 10,000 10,000 10,000 10,000 12,000 $15,000 7,500 4,500 1,875 1,312 7,500 7,500 7,500 7,500 9,000 $92,250 $69,187 C. DATA CONVERSION COSTS: Timeline will assist in the conversion of data from your existing system and has the experience and expertise to perform this task. Upon execution of a contract, Time1ine will need to examine the data files and make an assessment of our ability to use the data. At that time, The City of Seward will need to make a decision whether it is cost effective to convert the data or reenter the data from computer lists. It is recommended that Seward only convert the customer master file from the Utility Billing system on the system 34. If Seward supplies this data on an IBM compatible floppy disk, including the record layouts, Timeline will convert the data to the new file formats at a maximum cost of $6,000, however Timeline will charge only the actual hours used. PAGE 9 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT I - SOFTWARE D. COSTS: 0.1 Estimated Fees for Installation/Training and Consulting: Accounting Function/ Software Module Training Days General Ledger & Financial Reporting Accounts Payable DIGIBASE DIGICALC Vsort/Select (3) 4.0 3.0 0.75 0.75 0.00 3.0 2.0 2.0 Purchase Order Fixed Assets Inventory Control Payroll/Personnel 3.0 4.0 utility Billing The above listings are estimates only and actual times may vary. Training/Installation and Consulting Days are charged at the rate of $1,000 per day for on-site work by Time1ine consultants and $250 per day for attendance by City employees at regularly scheduled training classes of Licensor at the option of the City. Charges for training days do not include actual incurred travel expenses. Licensor agrees to provide all necessary installation and training required at the above rates. D,2 Travel Expenses: Licensor will charge actual incurred travel expenses to the City including airfare, hotel, car and meals; provided, however, that the total travel charges to the City per week-long visit to Seward shall not exceed $1,500; provided, further, that the total charges to the City shall not exceed $14,000. Any actual travel expenses incurred by City employees in attending training shall be paid for by the City; provided, however, that actual incurred travel expenses for City employees for training above the total of $7,500 shall be paid for by Licensor. 0.3 Function/Module Payment Terms: Initial Payment: For those functions/modules listed above in paragraph B.1, sixty percent (60%) of the discounted license fee shall be paid with the delivery of the signed contract. PAGE 10 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT I - SOFTWARE Final Payment Due Date: The remainder of the discounted license fee for each function/module shall be due upon successful implementation of each module. Successful implementation is defined as follows: DIGIBASE, DIGICALC, Vsort - Upon demonstration of menus and spreadsheets on the city's computer system. General Ledger - upon completion of 1 month's production reports agreed upon during initial consulting visit. Accounts Payable - upon completion of first check run and tieback of Trial Balance to the General Ledger. payroll - upon completion of 1st month's complete payroll cycle and preliminary printing of quarterly tax reports. purchase Orders - upon completion of purchase order entry, printing, and receiving functions. Inventory - upon entry of inventory product codes and beginning balances, including first month's reports. Fixed Assets - upon entering of assets and printing of depreciation report. Utility Billing - upon completion of first cycle of billing and cash receipting. Training, implementation and conversion costs due monthly upon incurrence. City of Seward agrees to make personnel available as reasonably required by Licensor for implementation and training on a scheduled basis and to make best efforts to supply at least 40 man-hours of city personnel available per week during the installation and training process. PAGE 11 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT II - ANNUAL SOFTWARE MAINTENANCE AGREEMENT ANNUAL SOFTWARE MAINTENANCE AGREEMENT COMMENCEMENT DATE: AGREEMENT NUMBER: Customer Installation Location: Service Location: The City of Seward P.O. Box 167 Seward, AK 99664 (907) 224-3331 Time1ine, Inc. 3055 112th Ave. NE, Suite 106 Be1levue, Washington 98004 (206) 822-3140 CONTACT PERSON CONTACT PERSON Timeline, Inc. agrees to provide and the Customer agrees to accept software product services on the item(s) listed below, at the annual charge indicated. The terms and conditions of the Annual Software Maintenance Agreement as set forth on the face and attachments of the Agreement are the sales terms and conditions applicable. ITEM MODEL NO. DESCRIPTION QTY UNIT CHARGE ANNUAL FEE 1 V4.1 GENERAL LEDGER/ 1 $ 3,000 $ 3,000 FINANCIAL RPTG. 2 V4.1 ACCOUNTS PAYABLE 1 $ 1,500 $ 1,500 3 V4.1 PURCHASE ORDER 1 $ 1,500 $ 1,500 4 V4.1 PAYROLL/PERSONNEL 1 $ 2,000 $ 2,000 5 V4.1 FIXED ASSETS 1 $ 1,500 $ 1,500 6 V4.1 INVENTORY CONTROL 1 $ 1,500 $ 1,500 7 UTILITY BILLING 1 $ 1,800 $ 1,800 8 V4.1 DIGIBASE 1 $ 1,200 $ 1,200 9 V1.4 DIGICALC 1 $ 750 $ 750 TOTAL YEARLY CHARGE: $14,750 CUSTOMER TIMELINE, INC. NAME DATE NAME DATE PRINT AUTHORIZED REPRESENTATIVE PRINT AUTHORIZED REPRESENTATIVE PAGE 12 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT II - ANNUAL SOFTWARE MAINTENANCE AGREEMENT I. DEFINITIONS A. Equipment: The computer hardware, including central processing unit (CPU) on which Software covered hereunder is installed, any auxiliary processors and any other hardware at the installation locations set forth on the face hereof. The original hardware configuration is shown on Exhibit I. B. Software: Any software product licensed by Timeline, Inc. for use on the Equipment for which software product services under this Agreement are available. Software may include machine-readable code (object code) written in any language on any media, source codes or listings and any improvements, modifications, or updates to such code or listings provided to Customer by Timeline, Inc. C. System: The Equipment and the Software as defined in A and B above. II . TERM This Agreement is effective from the last day of the initial warranty period for each module listed in Exhibit I and shall continue for an initial term ending June 30, 1990. Thereafter, this Agreement shall remain in force until terminated by either party upon ninety (90) days prior written notice. III. ELIGIBILITY FOR SERVICE AGREEMENT A. Software is eligible for inclusion under this Agreement immediately upon Timeline, Inc. installation of Software, expiration of Software warranty or expiration of an existing product service agreement. B. Service under this Agreement is contingent upon: 1. The System being unmodified and properly maintained at the latest Timeline, Inc. revision level. If the System is not under warranty or under existing Timeline, Inc. service agreements, the System shall be subject to inspection by Timeline, Inc. to determine if it is in good operating condition. The inspection and any repairs or any other adjustments, including updates or other program changes, deemed necessary by Timeline, Inc. shall be made at their per-call rates and terms then in effect and prior to commencement or continuation of services. 2 . The System containing at least the minimum hardware configuration and prerequisite Software as specified in the applicable Software Product Description ("SPD"). PAGE 13 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT II - ANNUAL SOFTWARE MAINTENANCE AGREEMENT 3. All Software being covered by Software warranty this Agreement (if such coverage is available). ware licensed after the Commencement Date of Agreement may be subject to addi tional charge (s) coverage under this Agreement. or by Soft- this for IV. SERVICE RESPONSIBILITIES OF TIMELINE, INC. A. Will resolve said problem at a failure of the software to License Agreement; or for Timeline, Inc. shall provide services: no additional charge if due to perform in accordance with the the charges stated herein, the following Software product 1. Software updates and program changes made generally available to Customers operating the same version during the term of the Agreement. 2. Telephone Diagnostic Assi stance. Telephone numbe r (s) will be provided to the Customer Contact to enable communication with a Timeline, Inc. Customer Service Representative during the hours of 9:00 A.M. to 5:00 P.M. local Timeline, Inc. Service Location time, Monday through Friday, exclusive of holidays. Timeline, Inc. will respond to the Customer Contact call within one (1) working day and will assist the Customer Contact in identifying and verifying problems in the Software covered hereunder. Timeline, Inc. will identify the problem and a) will resolve said problem at no additional charge if due to a failure of the Software to perform in accordance with the SPD; or b) if the problem is due to operator error, lack of training, or system malfunction not due to a failure of the Software to perform in accordance with the SPD, Customer will have the option to incur the cost of having Timeline, Inc. fix the problem(s) on a time and materials basis. B. From and after January 1, 1995, Time1ine, Inc. may, upon ninety (90) days written notice, withdraw individual software item(s) from this Agreement if such item(s) have been discontinued as product (s) by Timeline, Inc. or have been reclassified from a Timeline, Inc. supported to a Customer supported product. Service for such item(s) may be purchased on a per-call basis at Timeline, Inc. rates and terms then in effect. C. Customer and Timeline, Inc. shall agree in advance that the hardware maintenance organization selected by Customer is acceptable. Further, Customer and Timeline shall agree upon the equipment that will be purchased by Customer and that equipment shall be approved of by Timeline, Inc. PAGE 14 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT II - ANNUAL SOFTWARE MAINTENANCE AGREEMENT V. SERVICE LIMITATIONS A. No on-site Software product service is included under this Agreement. Any on-site service requested by the Customer will be provided at Timeline, Inc.'s per call rates and terms then in effect. B. If Software product ~ervice not covered by this Agreement is requested, the serVlce may be provided at Timeline, Inc.'s per-call rates and terms then in effect. C. The following services are not covered by this Agreement: service due to failure of equipment not maintained by a hardware maintenance organization approved by Timeline, Inc.; failure of Software due to equipment supplied by a vendor not approved by Timeline, Inc.; failure of non-Timeline, Inc. supplied software; catastrophe; fault or negligence of Customer; operator error; and improper use or misuse of the System. D. Software product service does not operating supplies or accessories. include providing VI. RESPONSIBILITIES OF CUSTOMER A. Customer acknowledges all Software, and/or changes, improve- ments, or updates to the Software provided by Timeline, Inc. are subject to the conditions of the Software product license contained in Timeline, Inc.'s License Agreement for Computer Application Software in effect at the time the Software was obtained and Customer agrees to abide by such conditions. B. The Customer agrees to maintain the System to the latest revision level. VII. CHARGES A. Annual charges will be invoiced one (1) month in advance. B. Charges for Software product services other than services as set forth herein will be invoiced at Timeline, Inc.'s per-call rates and terms then in effect. C. Payment of all serVlce period rendered. the is charges are for which due on the Timeline, fi rst day of Inc.'s invoice D. Timeline, Inc. may change monthly charges after the first anniversary date of this Agreement by giving thirty (30) days prior written notice. The charges shall not exceed Timeline, Inc.'s published charges for Software product services on the effective date of the change. The charges PAGE 15 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT II - ANNUAL SOFTWARE MAINTENANCE AGREEMENT for Software added to this Agreement will be the current published rate at the time the Software is added. E. In addition to the charges due under this Agreement, the Customer agrees to payor reimburse Timeline, Inc. any taxes or charges resulting from this Agreement which are levied by a taxing authority, except for taxes based upon Timeline, Inc.'s net income and Washington State Business and Occupations Tax. VIII.MOVEMENT OF SYSTEM A. To permit continuity of service under this Agreement, the Customer shall give Timeline, Inc. at least thirty (30) days prior written notice of its intent to move a System. A System which is moved outside the continental United States shall not be eligible for continued service hereunder. B. After reinstallation at the new location, the be subject to inspection by Timeline, Inc., above, prior to continuation of service Agreement. Timeline, Inc. shall be under no obligation to furnish continued service under this Agreement if either the Equipment or the Software is moved from its location of ini tial installation and/or reinstalled without the prior written approval of Timeline, Inc. System shall as specified under this C. IX. LIMITATION OF LIABILITY AND WARRANTY A. Timeline, Inc.'s liability to the Customer, (whether in contract or tort, including negligence) for damages of any nature shall not exceed the total charges paid or payable during one (1) year under the Agreement. B. No action, (whether in contract or tort, including negligence) arising out of the performance of services under this Agreement may be brought by either party more than two (2) years after the cause of action accrues. C. In no event will Timeline, use, data, or profits consequential damages. Inc. be liable for any loss of or any special, indi rect or D. TIMELINE, INC. DISCLAIMS ALL WARRANTIES IMPLIED WARRANTIES OF MERCHANTABILITY AND PARTICULAR PURPOSE). (INCLUDING ALL FITNESS FOR A X. GENERAL A. If either party neglects or fails to perform any of its obligations under this Agreement, and such failure continues for a period of twenty (20) days after written notice PAGE 16 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT II - ANNUAL SOFTWARE MAINTENANCE AGREEMENT B. thereof, the other party shall have the right to terminate this Agreement. The terms and conditions of this Agreement prevail over the terms and conditions of any order submitted by the Customer for Software product services under this Agreement. If the Customer revises its purchase order number, the Customer will provide prior written notice to Timeline, Inc. This Agreement supersedes all prior Software product service agreements and understandings between the parties with respect to any Software covered under this Agreement and may not be changed or terminated orally. D. It is expressly understood that if either party, on any occasion fails to perform any term of this Agreement, and the other party does not enforce that term, the failure to enforce on that occasion shall not prevent enforcement on any other occasion. C. E. Neither party shall assign this Agreement unless consented to by both parties. F. This Agreement will be governed by the laws of the state of Washington. Timeline, Inc., 3055 l12th Avenue N.E., Suite 106, Bellevue, WA 98004 PAGE 17 . . . LICENSE AGREEMENT FOR THE CITY OF SEWARD EXHIBIT III - COPYRIGHT NOTICE COP Y RIG H T Copyright (C) 1979, 1984 by Timeline, Incorporated, Bellevue, Washington This software is furnished under a license and may be used and copied only in accordance with the terms of such license and with the inclusion of the above copyright notice. This software, or any other copies thereof, may not be provided or otherwise made available to any other person, except as may be provided in the license agreement. No title to and ownership of the software is hereby transferred. PAGE 18