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Resolution No. 7936Fa 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 .26 27 28 RESOLUTION NO. 7936 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN EQUIPMENT PURCHASE AND SOFTWARE LICENSE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND ITRON, INC. WHEREAS, Itron, Inc. ("Itron") is in the business of designing, manufacturing, licensing and selling electronic and computer products and has developed equipment and software for use in utility industry meter reading; and WHEREAS, on or about October 25, 1988, the City of Vernon and Itron entered into Contract No. ENC-0988-196, Equipment Purchase and Software License Agreement and Terms and Conditions for System Support Services, for utility meter reading hardware, software and system support services; and WHEREAS, the existing meter reading system is incapable of providing time -of -use meter readings and will become obsolete as of December, 2002; and WHEREAS, Vernon's Utilities Department has determined that, based upon Itron's proven record of providing the current meter reading hardware, software and system support services to the City, Itron should be able to more efficiently and effectively provide a new upgraded system meeting the Department's specifications and requirements; and WHEREAS, on March 26, 2002, the Finance Committee recommended that the City Council approve the recommendation of Bruce V. Malkenhorst, the Director of Finance, dated February 5, 2002, that the City purchase the meter reading system and software from Itron at 1 a cost of approximately Sixty Thousand Five Hundred Ninety Dollars and 2 No Cents ($60,590.00), which includes prorated support charges for 3 nine (9) months; and 4 WHEREAS, the City Council of the City of Vernon has 5 determined that, pursuant to the provisions of subsection (a) of 6 Section 2.27 of the Vernon City Code, it is in the public interest and 7 necessity to enter into an agreement with Itron setting forth the 8 terms and conditions of the services to be performed for the 9 licensing, installation and training on the meter reading system to 10 enhance services provided to the Vernon community. 11 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 12 CITY OF VERNON AS FOLLOWS: 13 SECTION 1: The City Council of the City of Vernon hereby 14 finds and determines that the recitals contained hereinabove are true 15 and correct. 16 SECTION 2: The City Council of the City of Vernon hereby 17 approves the MV-RS Equipment Purchase and Software License Agreement 18 (No. MV-RS-0102-086) with Itron, a copy of which is attached hereto as 19 Exhibit "A" and made a part hereof. 20 SECTION 3: The City Council of the City of Vernon hereby 21 authorizes the Mayor and the City Clerk to execute said Agreement for, 22 and on behalf of, the City of Vernon. 23 SECTION 4: The City Council of the City of Vernon hereby 24 directs the City Clerk, or his designee, to send the fully executed 25 Agreement to: 26 Itron, Inc. 27 Attn. Brenda E. Watkins, Contract Administrator 2818 N. Sullivan Road 28 Spokane, WA 99216 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 3rd day of April, 2002. ATTEST: L� IBRUCE V. MALKENHORST, City Clerk ' EONIS C. MALB RG, May r - 3 - 1 2 3' 4i 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 7936, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, April 3, 2002, and thereafter was duly signed by the Mayor of the City of Vernon. I (SEAL) d� BRUCE V. MALKENHORST, City Clerk - 4 - EXHIBIT 0 ITRON, INC. MV•RS EQUIPMENT PURCHASE AND SOFTWARE WARE LICENSE AGREEMENT b—fl I � 7-nv I AGREEMENT NO. MV-RS-0102.086 This Agreement dated I� 120� between Itron, Inc., a Washington corporation, ('Itron') and the City of Vemon, ('Buyer'). WHEREAS, Itron is in the business of designing, manufacturing, licensing and selling electronic and computer products and has developed equipment and software for use in utility industry meter reading; WHEREAS, Buyer is a municipal utility and desires to purchase the equipment and license the software for use by meter reading personnel for recording of data from gas, water and/or electric meters and recording other customer information, and using such data for customer billing and information purposes; and, WHEREAS, Itron desires to sell the equipment and license the software to Buyer. NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, Itron and Buyer hereby agree as follows: SECTION J. DEFINITIONS 1.1 'Change Orde'. An Itron document in the form attached hereto as Attachment A, initiated by either party prior to System Installation, to authorize a change to the Schedules or terms of this Agreement Such document, upon mutual approval, shall become a contract document. 1.2 'Eouipmenr The components and devices listed on Schedule A hereto sold to Buyer pursuant to this Agreement. 1.3 'MV-RS WIN User Guide'. The document attached hereto by reference as Attachment B, which describes in detail the operational features, functionality and capabilities of the System to be delivered by Itron to Buyer pursuant to this Agreement, and shall include a functional description of Licensed Software. Itron acknowledges that this document may be amended or supplemented by Buyer as provided in Section 3.1. 1.4 'Proiect Management Services'. Those activities performed by Itron to train Buyer's personnel on the functions, installation and use of the System. The charges associated with such activities are listed on Schedule A. 1.5 "Licensed Software'. The ltron program products in binary form listed on Schedule A hereto and any subsequent modifications, corrections or revisions to the program products furnished to Buyer by Itron. 1.6 'Related Documentation'. Any human -readable program listings, flow charts, input and output forms, manuals, specifications, instructions, and other materials, and any copies of any of the foregoing, in any medium, related to the Equipment and/or Licensed Software and delivered to the Buyer in accordance with the provisions of this Agreement 1.7 'System'. Ali Equipment, Licensed Software, and Related Documentation sold and licensed to Buyer pursuant to this Agreement 1.8 'System Installation'. When the Buyer uses an item of Equipment or Licensed Software for training or testing purposes. SECTION 2. THE SOFTWARE 2.1 license. Subject to the terms and conditions of this Agreement, Itron hereby grants to Buyer a nonexclusive, nontransferable, perpetual license to use the Licensed Software, including the Related Documentation, set forth on Schedule A attached hereto in connection with the System. 2.2 Itron's Property. The Licensed Software, Related Documentation and methods of processing, shall remain the sole and exclusive property of Itron and shall not be sold, revealed, disclosed or otherwise communicated, directly or indirectly, by Buyer to any person, company or institution whatsoever except as set forth herein. 2.3 Scope of License. Buyer may use the Licensed Software on computers used or owned by Buyer. The Licensed Software shall be used only for the processing of Buyers own business information, which shall include servicing and maintaining records on behalf of its customers. Buyer shall not: (a) sublicense the Licensed Software or permit any third party to use the Licensed Software, (b) use the Licensed Software in the operation of a service bureau, or (c) reverse engineer, disassemble, modify, prepare derivative works of, or otherwise alter the licensed Software. Without the payment of an additional license fee, Buyer shall not use the Licensed Software to process business information concerning customers derived through merger, asset acquisition or other entity combination. Buyer may, at its own expense, copy all or part of the Related Documentation for its internal use. Buyer shall reproduce and include any copyright or trade secret notices on any such copies. Itron reserves all rights to the Licensed Software, the Related Documentation and the Equipment not specifically granted to Buyer in this Agreement. 2.4 Proorietary Information. In addition to the rights and obligations set forth in paragraph 5.4 herein, Buyer acknowledges and agrees that the information contained in the Licensed Software, Related Documentation and source code is proprietary or confidential information and is the property of Itron (or another party who has licensed to it=), and that the proprietary information is being made available to Buyer by thm in confidence and solely on the basis of Buyer's confidential relationship with Itron. The proprietary information is considered by Itron to be a trade secret of Itron. Buyer will not provide or otherwise make available any Licensed Software, Related Documentation or source code, in any form, except as required by law or judicial or governmental order, without Itron's prior written consent, except to employees or consultants of Buyer whose access to the information is necessary to enable Buyer to exercise its rights under this License and who are subject themselves to an obligation to maintain the confidentiality of such information. The Buyer's obligation of confidentiality under this Agreement shall survive terrnination of this Agreement. SECTION 3. PRICE, DELIVERY AND PAYMENT TERMS 3.1 Price. Itron hereby sells and licenses to Buyer, and Buyer hereby agrees to purchase and license from Itron, the Equipment and Licensed Software on the terms and conditions set forth in this Agreement. Prices and fees for the quantities of Equipment, Project Management Services and Licensed Software listed on Schedule A, and any Change Order(s) prior to System Installation, shall be protected from any increases for a period of one (1) year from the date of execution of this Agreement. The charges for Equipment, Licensed Software, and Project Management Services contained in the Schedule are based upon Itron's understanding of the System requirements and Itron's proposed approach to the System solution, as of the date of Itron's latest proposal to Buyer. Should the System requirements in the finalized MV-RS WIN User Guide or subsequent changes agreed upon by Buyer and Itron result in an increase in the scope of work, amount of work, or cost of Equipment, Licensed Software, or Project Management Services, then the charges quoted in the Schedule will be adjusted to the level necessary to compensate Itron for any such increases. Any increases in charges will be mutually agreed upon between Buyer and Itron. 3113102 3.2 Delivery Terms. The System shall be delivered to Buyer in accordance with the delivery schedule to be mutually agreed upon between the parties and attached to the MV-RS WIN User Guide. 3.3 Payment for Equipment Proiect Management Services and Licensed Software. (a) Payment Terms. Upon execution of this Agreement, Itron shall invoice Buyer for forty-five percent (45%) of the total price for the Equipment, Project Management Services and Licensed Software charges as specified in Schedule A. Upon initial delivery of the Equipment and Licensed Software, Itron shall invoice Buyer for an additional forty-five percent (45%) of the total price for the Equipment, Project Management Services and Licensed Software charges it accordance with Schedules A and any Change Order(s). Itron shall invoice Buyer for the final ten percent (10%) of the total price for the Equipment, Project Management Services and Licensed Software charges in accordance with Schedule A and any Change Order(s), when the System is initially used by Buyer for customer tilling purposes. Itron shall invoice Buyer for Software Customer Support fees on a quarterly basis starting three months after commencement of warranty. Itron shall invoice Buyer for round trip airfare, as noted on Schedule A, at actual as incurred by Itron. itron shall invoice Buyer for travel and per diem expenses as noted on Schedule A as incurred. (b) Freight. Buyer shall reimburse Itron for all freight and handling charges paid by Itron, in delivering the System to Buyer. (c) Taxes. Buyer agrees to reimburse Itron for amounts equal to any taxes and duties resulting from this Agreement, or any activities hereunder, exclusive of taxes based upon Itron's net income. In the event Buyer is a tax exempt entity, or pays taxes directly to the State, Buyer shall provide Itron with a copy of its Tax Exemption Certificate or Direct Pay Permit upon execution of this Agreement (d) Payment. All payments required to be made by Buyer shall be paid within thirty (30) days from date of receipt of invoice. All payments received more than thirty (30) days after the date of receipt of invoice shall be subject to a late charge of one and one-half percent (1-1/2%) per month for each month that the invoice remains unpaid. 3.4 Additional Equipment Licensed Software and Proiect Management Services. After all quantities of Equipment and Licensed Software listed on Schedules A and applicable Change Order(s) have been delivered to Buyer, Itron agrees to sell to Buyer additional Equipment and license additional licensed Software. The price for the additional Equipment and fees for Licensed Software will be at Itron's then prevailing prices and terms. In the event Buyer requests additional Project Management Services beyond those services originally specified in Schedule A, such services shall be provided at Itron's then prevailing prices and terms. The prices and fees for the additional Equipment, Licensed Software and Project Management Services shall be payable within thirty (30) days from the date of receipt of invoice. Any representations or warranties contained in this Agreement with respect to the System, shalt be applicable to the additional Equipment, Licensed Software and Project Management Services. 3.5 Title and Risk of Loss. Title to the Equipment shall pass to Buyer upon receipt thereof. The Equipment shall be shipped F.O.B. receipt pant in the City of Vernon, freight pre -paid and add. Itron shall transport the Equipment to locations specified by the Buyer. Buyer shall, as provided in paragraph 3.3(b), be obligated to reimburse Itron for all transportation costs incurred by Itron. SECTION 4. WARRANTY AND WARRANTY EXCLUSIONS 4.1 Warranty Itron warrants for a period of one (1) year from date of System installation, each item of Equipment will be free from defects in material and workmanship and the Licensed Software shall perform substantially in accordance with the MV-RS WIN User Guide. Itron's entire liability and Buyer's exclusive remedy for any Equipment or Licensed Software which fails to comply with the foregoing warranty, shall be, at Itron's option, to repair or provide an equivalent replacement of such nonconforming Equipment and Licensed Software which is returned properly packaged and prepaid to Itron's designated service center during the warranty period. Buyer agrees to furnish Itron reasonable access to said Equipment and Licensed Software. In the event Itron is unable to repair or replace the Equipment or Licensed Software as described above, Itron shall refund to Buyer the total amount paid by Buyer to Itron for such Equipment or Licensed Software. Itron agrees to pass through to Buyer all available warranties offered by the third -party manufacturers, applicable to third -party manufactured equipment (i.e. personal computers and modems) purchased under this AgreemenL THE WARRANTIES SET FORTH IN THIS SECTION 4.1 ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE 4.2 Warranty Exclusions. Itron shall have no obligation under paragraph 4.1 or otherwise under this Agreement for the following services, but N such services are available, they can be provided by Itron under this Agreement at iron's then applicable time and material charges and travel expenses. (a) Repair of damage or increase in service time caused by failure to continually provide a suitable installation environment. (b) Repair of damage or increase in service time caused by the use of the System for other than data processing purposes for which designed; or neglect or misuse. (c) Repair of damage caused by accident or disaster, which includes, but is not limited to fire, flood, wind, lightning, transportation subsequent to delivery, or force majeure. (d) Inspection of altered Equipment, repair of damage or increase in service time caused by alterations not authorized by Itron, which alterations include, but are not limited to, any deviation from Itron's physical, mechanical or electrical Equipment design.. (e) Repair of damage or increase in service time caused by the conversion from one Itron model to another or the installation or removal of an ftron feature whenever any of the foregoing was performed by other than Itron or its authorized agents. (f) Service time and materials associated with the rearrangement or relocation of Equipment. (g) Service time and materials associated with investigation and correction or modification of products that are not the Equipment or Licensed Software (e.g. Buyers mainframe computer hardware and software). SECTION 5. RIGHTS AND OBLIGATIONS 5.1 Infringement Indemnity. Itron will defend Buyer against a claim that Equipment or Licensed Software supplied hereunder infringes a U.S. 3113102 2 5.2 5.3 5.4 patent, copyright, trade secret or trademark or that the Equipment's operation pursuant to a current Itron release and modification level of any 'Licensed Software supplied by Itron infringes a U.S. patent, copyright, trade secretor trademark and Itron will indemnify Buyer from and pay resulting costs, damages and attorney fees finally awarded against Buyer with respect to such claim, provided that: (a) Buyer promptly notifies 11m in writing of the claim; and (b) Itron has sole control of the defense and all related settlement negotiations. Itron's obligation under this Section is conditioned on Buyers agreement that if the Equipment, or the operation thereof, or the Licensed Software, becomes, or in Itron's opinion is likely to become the subject of such a claim, Buyer will permit Itron, at Itron's option and expense, either to procure the right for Buyer to continue using the Equipment or Licensed Software or to replace or modify the same so that they become noninfringing. Such replacements or modifications shall be functionally equivalent to the Equipment and Licensed Software. If the foregoing alternatives are not available on temps which are reasonable in Itron's judgement, Buyer will return the Equipment or Licensed Software on written request to Itron and Itron shall refund to Buyer the Buyers then book value of such returned Equipment and Licensed Software as depreciated. Itron has no liability for any claim based upon the combination, operation or use of any Equipment or Licensed Software supplied hereunder with equipment or software not approved by Itron, or based upon Buyers alteration of the Equipment or modification of any Licensed Software supplied hereunder. The foregoing states the entire obligation of Itron and Buyer's sole and exclusive remedy with respect to infringement of patents, copyrights, trade secrets or trademarks. Limitation of Liability. ITRON'S AGGREGATE LIABILITY FOR DAMAGES TO BUYER SHALL NOT EXCEED THE TOTAL AMOUNTS PAID BY BUYER TO ITRON HEREUNDER FOR THE EQUIPMENT, LICENSED SOFTWARE OR SERVICES INVOLVED IN SUCH CLAIM FOR DAMAGES. IN NO EVENT SHALL ITRON BE LIABLE, WHETHER IN CONTRACT, NEGLIGENCE, TORT, OR' ON ANY OTHER BASIS, FOR COVER OR FOR INCIDENTAL, SPECIAL, CONSEQUENTIAL (INCLUDING LOSS OR CORRUPTION OF DATA, OR LOSS OF REVENUE, SAVINGS OR PROFITS) OR EXEMPLARY DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE SALE, MAINTENANCE, USE, PERFORMANCE, FAILURE OR INTERRUPTION IN THE OPERATION OF THE EQUIPMENT, LICENSED SOFTWARE OR ANY ITRON SERVICE. Service After Warranty. The Equipment and Licensed Software are eligible for service under Itron's standard service agreement. The fee for service shall be at Itron's then prevailing rates. At Buyers option, the service agreement may commence on the date of expiration of the initial warranty period for the Equipment and/or Licensed Software. Confidentiality. Except as required by law or judicial or governmental order, Itron and Buyer agree to hold in strictest confidence all information and material which is related to the other party's business, which is designated as proprietary and confidential, or which is related to the performance by the other party of its obligations under this Agreement. Proprietary and confidential information includes, but is not limited to the terms of this Agreement, information related to research, development, pricing, trade secrets, customer lists, salaries or business affairs of the parties to this Agreement. Proprietary and confidential information shall not include any information that is: (i) known to the other prior to the effective date of this Agreement, and can be shown to have been so known by documentary evidence; or (ii) obtained by the other without restriction as to the further disclosure thereof from a source other than the party hereto having transferred such information hereunder through no breach of confidence by such source, and can be shown to be so obtained by documentary evidence; or (iii) in the public. domain when received, or thereafter enters the public domain through no fault of the other, or (iv) independently developed by the other without use of such proprietary or confidential information, and can be shown to be so developed by documentary evidence; or (v) required to be disclosed by third party subpoena, applicable law or any governmental authority having jurisdiction, provided that the recipient party gives the disclosing party advance written notice of such required disclosure and cooperates with the disclosing party to limit the scope and use of the information to be disclosed. The parties' obligations of confidentiality under this Agreement shall survive termination of this Agreement. 5.5 Site Preparation. Buyer shall be responsible for supplying such space, lighting, utilities, communications facilities, air conditioning and other environmental requirements for the Equipment as Itron may reasonably require. 5.6 Equipment or Licensed Software Modification. Itron's obligations hereunder shall be void in the event Buyer modifies the Equipment or Licensed Software or uses any attachment, feature, or device on the Equipment without first obtaining Itron's written approval. 5.7 Law Compliance. Itron shall comply with provisions of the Federal Fair Labor Standards Act in the manufacture of the Equipment and Licensed Software, including all laws prohibiting discrimination in employment, to the extent that such laws pertain to Itron. 5.8 Term and Termination. (a) Termination. This Equipment Purchase and Software License Agreement shall become effective upon execution by Itron and Buyer and shall terminate: (1) Thirty (30) days after a party gives the other party written notice of that party's material breach of this Agreement, unless the other party has made progress in curing the breach to an extent satisfactory to the nonbreaching party or (2) At a party's option, upon tern (10) days written notice of termination, if the other party becomes insolvent, executes an assignment for the benefit of creditors, or becomes subject to bankruptcy or receivership proceedings. (b) Rights and Obligations Upon Termination. Upon termination of this Agreement: (1) Buyers rights to use Licensed Software under Section 2 shall immediately cease; Buyer shall delete the Licensed Software from all its computers and other software into which it has been merged; and Buyer shall immediately deliver to Itron or destroy all copies of the Licensed Software and Related Documentation; however, Buyer may, upon Itron's prior written consent, retain one (1) copy of the foregoing for archive purposes only; and (2) Buyer shall, within one (1) month after the termination of this Agreement, certify in writing to Itron that, to the best of Buyers knowledge, all copies of the licensed Software and Related Documentation have been returned or destroyed, except for any archive copy permitted under Paragraph 5.8(b)(1). 5.9 Term and Termination after System Installation. If, within thirty (30) days from System Installation, the System does not perform substantially in accordance with the MV-RS WIN User Guide and/or Related Documentation, and such performance deviations have not been corrected within a mutually agreeable period of time from the completion of the thirty (30) day period, then Buyer may notify Itron in writing of its intent not to accept the System, in which case, Buyer 3113102 3 shall return all Equipment and Licensed Software to Itron and Itron shall refund all monies paid to Itron by Buyer for said Equipment, Licensed Software, related shipping charges and applicable taxes less any amounts refunded to Buyer pursuant to paragraph 4.1. It is agreed that deviations from performance of the System, as specified in the MV-RS WIN User Guide, which would cause Buyer to cancel this Agreement would be substantial in nature and that a list of 'minor' Licensed Software inconsistencies (bugs) may be provided to Itron by Buyer prior to the completion of the test phase. These inconsistencies will be corrected by Itron in a mutually agreeable period of time following completion of the test phase, but these items shall not be cause for Buyer to cancel this Agreement. A minor Licensed Software inconsistency or 'bug' is defined as one that does not impede Buyer from recording meter reading data with the System and processing that data for customer billing purposes. SECTION 6. GENERAL 6.1 Force Maieure. Neither party hereto shall be responsible for any failure or delay in the performance of any obligation hereunder, other than Buyer's obligation to pay for product received, if such failure or delay is due to a cause beyond the party's reasonable control, including, but not limited to acts of God, flood, fire, volcano, war, third -party suppliers, labor disputes or governmental acts. 6.2 Assignment. Buyer shall not assign this Agreement, directly or indirectly, without the prior written consent of Itron; provided, however, that Buyer may assign this Agreement to its successor in a merger or to the purchaser of all or substantially all of Buyers assets if such successor or purchaser agrees in writing to comply with the terms and conditions of this Agreement. 6.3 Governing . This Agreement and performance hereunder shall be gover by and construed in accordance with the laws of the State of Califomia without reference to its choice of law principles. 6.4 Enforceability. If any provision in this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 6.5 Notices and Requests. Notices hereunder shall be in writing and shall be given by either party to the other by delivery or by mailing the same by prepaid registered mail addressed as specified herein or to such other address as may be substituted by written notice by either party to the other: Buyer. Notices to Buyer at address provided below. Itron: ITRON, INC. 2818 N. Sullivan Road Spokane, WA 99216 Attn: Contract Administrator Any such notice so given shall be deemed to have been received by the party to whom addressed on the day of delivery thereof. 6.6 Entire Agreement. Each party acknowledges that it has read this Agreement, understands it, and agrees to be bound by its terms and further agrees that it is the complete and exclusive statement of the agreement between the parties. Any terms and conditions appearing on Buyers purchase order and other authorizations shall not apply to or become a part of this Agreement; this Agreement may be modified or altered only by a written instrument that refers to this Agreement and is duly executed by an authorized representative of each party. 6.7 Headings Not Controlling. Headings used in this Agreement are intended for convenience or reference only and shall not control or affect the meaning or construction of any provision of this Agreement. IN WITNESS WHEREOF the parties hereto have signed this Agreement the day and year first above written by their duly authorized representative. BUYER: CITY OF VERNON By: Name: Leonis C. Malburg Title: Moor Address: 4305 Santa Fe Avenue Vernon, CA 90058 ATTEST: By: Name: Bruce V. Malkenhorst Title: City Administrate APPROVED AS TO FORM: By: Name: Eduardo Olivo Title: City Attorney If a corporation, name the State in which incorporated ITRON, INC. t%_. - :!YL�r�'/"y Title / e Tax Exempt Yes No If yes, attach copy of Tax Exemption Certificate. Dun and Bradstreet Number 3113102 4 Schedule A 1TRON MV-RS WITH TOU11DR ELECTRONIC METER READING SYSTEM SINGLE PC SYSTEM CONFIGURATION HARDWARE/SOFTWARBSERWCES PRICING SUMMARY UNIT EXTENDED ITEM PART NUMBER DESCRIPTION QTY PRICE PRICE (1) 1 TRX-0002-001 G5 Handheld, 8MB, Membrane Overlay, Dual -Cell 4 $3,195.00 $12,780.00 Battery, Quick Reference Guide 2 BCS-0003-002 G5 POD, Charging Communications Cradle 4 $495.00 $1,980.00 includes power board connector, RJ 11 connector 3 PWR-0013-001 POD Power Supply 2 $100.00 $200.00 (2) 4 CBL-0040-001 U.S. Power Plug for Power Supply 2 Incl. Ind. 5 520-0358-001 PC to POD Cable (6 ft.) 2 $15.00 $30.00 (3) 6 470-0113-002 TOU/IDR Optical Probe 4 $745.00 $2,980.00 7 MVRSTOU MV-RS with TOU/IDR EMR System 1 $14,000.00 $14,000.00 (4) Software License for Up to 10,000 meters 8 Support Services First Year Software Customer Support 9 mo. $180.00 $1,620.00 (5) 9 Services MV-RS Single PC System with TOU/IDR 1 $27,000.00 $27,000.00 (6,7) Project Management Services TOTAL $60,590.00 Third Party Components 10 Hardware Pentium Pro PC Workstation 1 TBD TBD (8,9) Please refer to itron's standard terns and conditions for delivery and payment. BMR #W0326 Rev2Dec ftwiiy December 11, 2001 Page 1 of 3 Notes and Assumptions for City of Vernon_- —_- ____,�_______� ITRON MV--RS WITH TOU/IDR ELECTRONIC METER READING SYSTEM SINGLE PC SYSTEM CONFIGURATION HARDWAR&SOFTWARE/SERVICES PRICING SUMMARY (1) Taxes and freight not included. (2) One Power Supply will support up to three POD Cradles. (3) Exact cable configurations and price are subject to change during the on -site construction phase. Please see attached MV-RS Configuration Notes for more information on communication requirements. (4) Includes Handheld and IHP Meter Reading Software applications and Meter Protocols that are required by Utility and are currently released. (5) Software Customer Support provides users with unlimited customer support service via Itron's Hotline. Assistance is available for questions regarding system configuration, report generation, informal operator training, route management, etc. The fee begins ninety days after shipment, or upon live system operation. This support is also available for purchase on an as incurred basis at current ttron labor rates with an authorizing customer purchase order. (6) Project management services price includes 18 days labor in-house and on -site and reflects the level of support Itron believes will best position this project for success. Price includes implementation of TOU/IDR optical reading concurrent with the first office startup. Train -the -Trainer Instruction and installation support for the first office is included with the utility responsible for additional offices. Per diem expenses of $250 per day and round-trip airfares at actual are not included and will be billed to the utility based on actual number of days and trips. (7) Assumptions include: Utility will assign a full time Project Manager for duration of the project. Utility will build CIS interfaces to MV-RS. (8) See the attached MV-RS Configuration Notes for the minimum recommended configuration for PC hardware requirements as well as other system configuration notes. (9) Itron recommends that Utility purchase third party hardware and software directly and take advantage of existing supplier relationships. (10) The quarterly service fee on Itron-provided hardware and software for the proposed system, after the first year . Software Customer Support services and one year hardware warranty, is $1.275.00. (11) The exact and final configuration may vary based upon further clarification of Utility's business operating needs. (12) Prices are reflective of total system purchase and may be adjusted if the scope of work is modified. Final pricing will be based on detailed system configuration finalized during the construction phase. Please refer to Itron's standard terms and conditions for delivery and payment. Prices are valid for 90 days. BMR #W0326 Rev2Dec lipwili December 11, 2001 Page 2 of 3 MVRS Conriruration Notes s Single PC System - $ _ - _ _ - - - R _ _ - - ® Preliminary Configuration The system configuration shown in the pricing summary is preliminary and may change based on further system analysis. Quantities listed for such items as communication cables, PCs, and modems are based on current understanding of utility requirements. Final quantities may vary. Workstation Requirements Components Size Comments Processor/ Model Pentium III 550MHz Minimum Pentium II 266MHz RAM 128 MB of RAM Disk Space 2GB drive Diskette 3 1/2 " floppy drive CD ROM Yes Monitor 15 " SVGA monitor Operating System Windows 95/98 All Versions Windows NT Service Pack 6a Windows 2000 Database Pervasive Included with MVRS Other 64-bit Graphics Accelerator Mouse 101-keyboard Communication Requirements MV-RS will utilize two standard serial ports for a single PC, in particular COM1 and COM2. For directly connected handhelds, 25 is the recommended upper limit that should be attached to a single port. Remote handhelds will require a separate communication port. The number of remote handhelds that can be supported by that port varies based on the utility's operations requirements. These factors will determine the number of communication PCs required for the MV-RS system. Modems If required to support meter readers at remote offices, Itron recommends the US Robotics 56K Modem. The modems would be purchased separately by the utility. Communication Cables Modems and communication cables can vary in quantity based on the utilitys operations and remote dial -in environment. Most workstations will require two cables. Each remote meter reading office with a modem will also require a cradle to modem cable. BMR #W0326 Rev2Dec WAS December 11, 2001 Page 3 of 3 ATTACHMENT A aFRON Change Order Form Client Name: #: Date: Requestor: Date Required: Client Auth: Dater Itron Representative Auth: Date: Contract Adm Auth: Date: Has contract been signed? O Yes O No Hardware Changes: han a trom Qty I Item Description Unit Price Comments: Order Processing: PO/Contract #: _ Comments: Contracts/Proposals/Sales Order Processing O C, a to O Aaa Qty I Item Description I Unit Price Software Changes: O ' Modifications O Meter Licenses O Other: Description Unit Price Implementation Labor and Expense: O Billable O Non -billable Charge to: Purpose Description Days @ $ Total Labor Per Diem Misc. Total ATTACHMENT B MV-RS WIN USER GUIDE DOCUMENT (to be attached hereto by reference) SUPPORTING DOCUMENTS CITY COUNCIL LBONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Tern WM. `BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 April 10, 2002 Itron, Inc. Attn: Brenda E. Watkins 2818 N. Sullivan Road Spokane, WA 99216 EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director orUommunity Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 Re: MV-RS Equipment Purchase and Software License Agreement Dear Ms. Watkins: Transmitted herewith is a duplicate original copy of the above referenced approved by the Vernon City Council on April 3, 2002. If you have any questions regarding this matter, please call Carol Dacey at (323)583-8811 ext. 254. Czery truly yours, Nelly Giron Assistant Chief Deputy City Clerk NG:mt CC: Carol Dacey Dolores Fonseca Agreement File #02-018 Resolution No. 7936