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HomeMy WebLinkAboutOrcom Systems Inc; 1997-07-02;June 23,1997 TO: FROM: VIA: CITY MANAGER Administrative General Manager CONTRACT FOR UPGRADE TO ITRON METER READING SYSTEM Reauested Action Attached for your review and signature is a contract with Orcom Systems, Inc., for the purchase and training of upgrades to our ltron Meter Reading System. Item Explanation In accordance with one of the City Council/Water Board’s goals, our office is upgrading its electronic meter reading system for higher efficiency and to keep pace with software technology. Staff has determined that it is more cost effective to simply upgrade the existing system rather than buy a new one. The current system is manufactured by ltron, Inc., whose equipment is considered “state-of-the-art” within the industry. The attached contract is with Orcom Systems who was selected by ltron to be their distributor. Orcom will supply the hardware, software and training as defined in the contract. The Purchasing and City Attorney Offices have reviewed and approved this contract. Fiscal Impact The total contract cost is $24,994. Funds have been appropriated in this year’s Water Enterprise Operating Budget to cover these costs. If you have any questions, please call me at extension 110. CLINT PHILLIPS Attachment ....... ~ .......... :::.:::::::::.:.:.:.:::.:.:.: ..... :.:.:.:.:.:.:.:.:.: .. ... ......... : per,, .... .: :. .:. : ................ ................... ... :. .:.i::::.I:::I:~.::::.~::::.::..: .: ._: :..:. :y: ,; : y: ,s ::j.:..j.:. .,: j .,: : . ::.::.:::: Aon Risk Services, Inc. of OR 1211 SW Fifth Ave., Suite 600 Port lend, OR 97204 REE 503-224-9700 OrCom Systems, Inc. 1001 S. W. Disk Drive Bend OR 97702 ~ ..:.:.:::.:::j.::: . . . . . .._..... :,:::,y:.:.:.:.:.:.:.: :,:,: ,:.:. >: :.: .,.,.,.,.,. .., ,::.:.:.:.:.:.:.:.:.:::. .‘.:.:.:.:.‘.:.::. .:.:.....:...,.:: .,., ., . . . . . . .,.,.,.....,., :....:.:.:.:.y.:.\:: ,.:: . . . . . . . . . . . . . . . ,. I) .:.:. .: ,. . . THISISTOCERTIFY THATTHEPOLlClESOFlNSURANCELlSTEDBELOWHA INDICATED.NOTWITHSTANDlNGANYREOUlREMENT.TERMORCONDITIOI CERTIFICATE MAY BEISSUEDORMAY PERTAIN, THE INSURANCE AFFOR[ EXCLUSIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOWNMA OWNER’S &. CONTRACKXS PRO1 ALL OWNED AUTOS SCHEMllED AUTOS EXQESsLIABLIlv UMBRELLA FORM EMPLOVERS’LIABKITV IHE PROPRIETOR/ PARINERS/EXECUlIVE OFFICERS ARE: OTHER POLlcV NUMBER 35323024 l/01/97 73237998 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE A OLICIES BELOW. COMPANY C COMPANY D :.:, :. . . :..:; ‘: ,. ,. :.. .. ::.;::y:: ‘. : ‘.‘.: :. :.‘. : : :.:: ::: . : . ~FANYCONTRACTOROTHERDOCWENTWlTHRESPECTTOWHlCHTHlS D BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, HAVE BEEN REDUCED BY PAID CLAMS POLlCV EFFECTIVE DATE (MMIDDIVV) l/01/97 ‘OLlCV EXPRATlON DATE (MMIDDIVV) LIMITS GENERAL AGGREGATE E 2000000 l/O l/98 PRODUClSCOMPIOP AGG $ 2000000 l/O l/98 / BODILY INJJRY (Per amdenl) s PROPERTY DAMAGE s AUTO OKY EA ACCIDENT 0 OTHER THAN AUTO ONLV ’ .: EACH ACCIDENT S I AGGREGATE 1 S EACH OCCURRENCE (S AGGREGATE IS Ci tv of Carlsbrd SHOULD ANY OF THE ABOVE DESCRIBED PDLICLS BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL ENDEbVOR TO MAK 30 DAYS WRITTEN NOTICE TO THE CERTlflCATE HOLDER NAMEDTD THE LEFT. I Munici pal Water District I- BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSENO DBLIGATlON OR LIABKITV Attn: Clint Phillips 5950 El Camino Real OF ANY KIND UPON THE COMPANV. ITS AGENTS OR REPRESENTATIVES. 356805000 Carlshad CA 92008 . . . . . . . . . . . . . ...\.. , .,... ~l:~~~~~:i:~~~~~~~~:~:~~~~~:~:.~~~~,~,~,~~~.i;:ilr ,,\, AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT is, made and entered into as of the 2~Jo day of &IA I 1997, by and between the CARLSBAD MUNICIPAL WATER DISTRICT, a municipal corporation, hereinafter referred to as “District”, and ORCOM SYSTEMS, INC., hereinafter referred to as “Contractor.” RECITALS District desires to replace and upgrade its ltron Datacap Meter Reading System by acquiring the FS/2 ltron Meter Reading System using MV-RS Software. As a distributor for the manufacturer, ltron, inc., the District has selected Orcom Systems, Inc., as the Contractor; and Contractor possesses the necessary skills and qualifications to provide the services required by the District; NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, District and Contractor agree as follows: 1. CONTRACTOR’S OBLIGATIONS The Contractor will provide professional services as further described in the Contractor’s proposal of services incorporated herein by reference for the delivery, installation, implementation and training of the FS/2 ltron Meter Reading System. Contractor also agrees as follows: A. That from the date of shipment, the System proposed will perform in a manner as described in the Contractor’s proposal and accompanying literature. If the System does not perform at the described level thirty (30) days after used in a production capacity as outlined in the Contractor’s proposal and described in Optional Agreement - Itron.doc 1 Rev. 4/l 9196 . * *. . , accompanying literature, the Contractor, at no increased cost to the District, will add or upgrade equipment as necessary to meet the described standard. B. That all equipment will be delivered to the Carlsbad Municipal Water District Administrative Offices no later than one hundred twenty (120) days after the Contractor receives a City of Carlsbad purchase order and signed ltron End User License and Warranty Agreement (attached Exhibit “A”). The Contractor will advise the District of the estimated delivery date and actual delivery date at least one (1) week 1 prior to that date. C. 3 The date for installation and training will be set once the System’s FromHost Files have been approved by the Contractor’s installer/trainer. D. That at the times and places mutually agreed upon by the parties, the Contractor shall provide training and consulting services to District personnel and shall furnish all training materials necessary to accomplish the training of District personnel in the use of the System. E. To hereby assign Itron, Inc.‘s, manufacturer’s warranty that the equipment, along with the software, will be free from any known errors and will operate as described in the Contractor’s proposal and its accompanying literature, after installation and setup. ltron, Inc., will offer an annual service agreement (attached Exhibit “A”) covering equipment maintenance and software support as described in Section 6 of the Contractor’s proposal. The cost for the first year of the agreement will be $3,312. If the Optional Agreement - Itron.doc 2 Rev. 4/I 9196 District chooses to enter into the agreement, the agreement will begin the day after expiration of the manufacturer’s warranty and will end after 365 days. 2. DISTRICT OBLIGATIONS The District shall purchase the following items at the indicated price: ltro ltron FS/2 Meter Reading System including: (5) FS/2, 2 MB, 1x12 Pin Ports (5) FS/2 PN Cradle with Power Supply FS/2 Cradle to PC-AT 9 Pin Cable FS/2 Cradle Join Kit MV-RS Software for 1-14 Meter Readers Implementation & Training for 5 Days (on-site in Carlsbad) Total System Price: Trade-in Credit: Tax: ‘. Shipping: Total Delivered Price: ‘.No sales taxes charged in Oregon. $17,025 $ 2,475 $ 60 $ $ 2,5:: $ 5,130 $27,214 ($2,300) $0 $80 $24,994 3. DESCRIPTION OF SYSTEM The System in Paragraph 2 of the contract will be as described in Sections 3, 4, and 5 of the Contractor’s proposal and accompanying literature. 4. FEES TO BE PAID TO CONTRACTOR The total fee payable for the services to be performed shall be $24,994. No other compensation for services will be allowed except those items covered by supplemental agreements per Paragraph 7, “Changes in Work “. Optional Agreement - Itron.doc 3 Rev. 4119196 - 5. DURATION OF CONTRACT This agreement shall extend for a period of six (6) months from date thereof. The contract may be extended by the District General Manager for one additional six (6) month period or parts thereof, based upon a review of satisfactory performance and the District’s needs. The parties shall prepare extensions in writing indicating effective date and length of the extended contract. 6. PAYMENT OF FEES Payment to the Contractor for purchase of the hardware and software will be due upon receipt of all items as listed in Section 7 of the Contractor’s proposal. Contractor will bill for hardware and software upon delivery. Charges for implementation, training and travel expenses will be billed upon completion of said implementation and training. 7. CHANGES IN WORK If, in the course of the contract, changes seem merited by the Contractor or the District, and informal consultations with the other party indicate that a change in the conditions of the contract is warranted, the Contractor or the District may request a change in contract. Such changes shall be processed by the District in the following manner: A letter outlining the required changes shall be forwarded to the District by the Contractor to inform them of the proposed changes along with a statement of estimated changes in charges or time schedule. A standard Amendment to Agreement shall be prepared by the District and approved by the District according to the procedures described in Carlsbad Municipal Code Section 3.28.172. Such Amendment to Agreement shall not render ineffective or invalidate unaffected portions of the agreement. Optional Agreement - Itron.doc 4 Rev. 4119196 8. COVENANTS AGAINST CONTINGENT FEES The Contractor warrants that their firm has not employed or retained any company or person, other than a bona fide employee working for the Contractor, to solicit or secure this agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this agreement. For breach or violation of this warranty, the District shall have the right to annul this agreement without liability, or, in its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fees, gift, or contingent fee. 9. NONDISCRIMINATION CLAUSE The Contractor shall comply with the state and federal laws regarding nondiscrimination. 10. TERMINATION OF CONTRACT This agreement may be terminated by either party upon tendering thirty (30) days written notice to the other party. In the event of such suspension or termination, upon request of the District, the Contractor shall assemble the work product and put same in order for proper filing and closing and deliver said product to District. In the event of termination, the Contractor shall be paid for work performed to the termination date; however, the total shall not exceed the fee payable under Paragraph 4. The District General Manager shall make the final determination as to the portions of tasks completed and the compensation to be made. Optional Agreement - Itron.doc 5 Rev. 4/19/96 11. CLAIMS AND LAWSUITS The Contractor agrees that any contract claim submitted to the District must be asserted as part of the contract process as set forth in this agreement and not in anticipation of litigation or in conjunction with litigation. The Contractor acknowledges that if a false claim is submitted to the District, it may be considered fraud and the Contractor may be subject to criminal prosecution. The Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If the District seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney’s fees. The provisions of Carlsbad Municipal Code sections 3.32.025, 3.32.026, .027 and 3.32.028 pertaining to false claims are incorporated herein by reference. (initial) 12. STATUS OF THE CONTRACTOR The Contractor shall perform the services provided for herein in Contractor’s own way as an independent contractor and in pursuit of Contractor’s independent calling, and not as an employee of the District. Contractor shall be under control of the District only as to the result to be accomplished, but shall consult with the District as provided for in the request for proposal. The persons used by the Contractor to provide services under this agreement shall not be considered employees of the District for any purposes whatsoever. Optional Agreement - Itron.doc 6 Rev. 4119196 The Contractor is an independent contractor of the District. The payment made to the Contractor pursuant to the contract shall be the full and complete compensation to which the Contractor is entitled. The District shall not make any federal or state tax withholdings on behalf of the Contractor or his/her employees or subcontractors. The District shall not be required to pay any workers’ compensation insurance or unemployment contributions on behalf of the Contractor or his/her employees or subcontractors. The Contractor agrees to indemnify the District within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers’ compensation payment which the District may be required to make on behalf of the Contractor or any employee or subcontractor of the Contractor for work done under this agreement or such indemnification amount may be deducted by the District from any balance owing to the Contractor. 13. CONFORMITY TO LEGAL REQUIREMENTS The Contractor shall cause all final reports to conform to all applicable requirements of law: federal, state and local. Contractor shall provide all necessary supporting documents, to be filed with any agencies whose approval is necessary. Contractor agrees to allow District or its designated representative to monitor, audit, review, and examine the methods, procedures, and results of Contractor. 14. OWNERSHIP OF DOCUMENTS All plans, studies, sketches, drawings, reports, and specifications as herein required will be delivered to the District. In the event that this agreement is terminated, all documents, plans, specifications, drawings, reports and studies shall be returned to the Contractor. Optional Agreement - Itron.doc 7 Rev. 4/l 9196 15. HOLD HARMLESS AGREEMENT Contractor agrees to indemnify and hold harmless the District and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney fees arising out of the performance of the work described herein caused in whole or in part by any willful misconduct or negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where caused by the active negligence, sole negligence, or willful misconduct of the City of Carlsbad. Contractor shall at his own expense, upon written request by the District, defend any such suit or action brought against the District, its officers, officials, employees and volunteers. Contractor’s indemnification of District shall not be limited by any prior or subsequent declaration by the Contractor. 16. ASSIGNMENT OF CONTRACT The Contractor shall not assign this contract or any part thereof or any monies due thereunder without the prior written consent of the District. 17. SUBCONTRACTING If the Contractor shall subcontract any of the work to be performed under this contract by the Contractor, Contractor shall be fully responsible to the District for the acts and omissions of Contractor’s subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this contract shall create any contractual relationship between any subcontractor of Contractor and the District. The Contractor shall bind every subcontractor and every subcontractor of a Optional Agreement - Itron.doc 8 Rev. 4119196 subcontractor by the terms of this contract applicable to Contractor’s work unless specifically noted to the contrary in the subcontract in question approved in writing by the District. 18. PROHIBITED INTEREST No official of the District who is authorized in such capacity on behalf of the District to negotiate, make, accept, or approve, or take part in negotiating, making, accepting, or approving of this agreement, shall become directly or indirectly interested personally in this contract or in any part thereof. No officer or employee of the District who is authorized in such capacity and on behalf of the District to exercise any executive, supervisory, or similar functions in connection with the performance of this contract shall become directly or indirectly interested personally in this contract or any part thereof. 19. VERBAL AGREEMENT OR CONVERSATION No verbal agreement or conversation with any officer, agent, or employee of the District, either before, during or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained nor entitle the Contractor to any additional payment whatsoever under the terms of this contract. 20. SUCCESSORS OR ASSIGNS Subject to the provisions of Paragraph 15, “Hold Harmless Agreement,” all terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. Optional Agreement - Itron.doc 9 Rev. 4119196 21. EFFECTIVE DATE This agreement shall be effective on and from the day and year first written above. 22. CONFLICT OF INTEREST The District has determined, using the guidelines of the State of California Political Reform Act and the City of Carlsbad Conflict of Interest Code, that the Contractor will not be required to file a conflict of interest statement as a requirement of this agreement. However, Contractor hereby acknowledges that Contractor has the legal responsibility for complying with the State of California Political Reform Act and nothing in this agreement releases Contractor from this responsibility. 23. INSURANCE The Contractor shall obtain and maintain for the duration of the contract and any and all amendments insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Said insurance shall be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best’s Key Rating of not less than “A-W” and shall meet the City of Carlsbad policy for insurance as stated in Resolution No. 91-403. A. Coveraaes and Limits. Contractor shall maintain the types of coverages and minimum limits indicated herein, unless a lower amount is approved by the City Attorney or City Manager: Optional Agreement - Itron.doc 10 Rev. 4/I 9196 1. Comprehensive General Liability Insurance. $1 ,OOO,OOO combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits shall apply separately to the work under this contract or the general aggregate shall be twice the required per occurrence limit. 2. Automobile Liability. $1 ,OOO,OOO combined single-limit per accident for bodily injury and property damage. 3. Workers’ Compensation and Employer’s Liability. Workers’ Compensation limits as required by the Labor Code of the State of California and Employer’s Liability limits of $1 ,OOO,OOO per accident for bodily injury. 4. Professional Liability. Errors and omissions liability appropriate to the Contractor’s profession with limits of not less than $1 ,OOO,OOO per claim. Coverage shall be maintained for a period of five years following the date of completion of the work. B. Additional Provisions. Contractor shall ensure that the policies of insurance required under this agreement contain, or are endorsed to contain, the following provisions. 1. The Contractor shall furnish certificates of insurance to the District before commencement of work. 2. The Contractor shall obtain occurrence coverage, excluding Professional Liability which shall be written as claims-made coverage. 3. This insurance shall be in force during the life of the agreement and any extension thereof and shall not be canceled without 30 days prior written notice to Optional Agreement - Itron.doc 11 Rev. 4119196 the District sent by certified mail. 4. If the Contractor fails to maintain any of the insurance coverages required herein, then the District will have the option to declare the Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order that the required coverages may be maintained. The Contractor is responsible for any payments made by the District to obtain or maintain such insurance and the District may collect the same from the Contractor or deduct the amount paid from any sums due the Contractor under this agreement. 24. RESPONSIBLE PARTIES The name of the persons who are authorized to give written notices or to receive written notice on behalf of the District and on behalf of the Contractor in connection with the foregoing are as follows: For District: Title: General Manacrer Name: Robert J. Greanev Address: Carlsbad Municipal Water District 5950 El Camino Real Carlsbad, CA 92008 For Contractor: Title: V.P. of Operations Name: Orcom Svstems, Inc Address: 1001 SW Disk Drive Bend, OR 97702 25. BUSINESS LICENSE Contractor shall obtain and maintain a City of Carlsbad Business License for the duration of the contract. Optional Agreement - Itron.doc 12 Rev. 4119196 26. ENTIRE AGREEMENT This agreement, together with any other written document referred to or contemplated herein, embody the entire agreement and understanding between the parties relating to the subject matter hereof. Neither this agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. /II /If /I/ /I/ /Ii //I /I/ iii IfI //I I// if/ //I /II /I/ /I/ //I //I Optional Agreement - Itron.doc 13 Rev. 4/l 9196 . - . Executed by Contractor this $& day of , 1997. -%hsl ~h’r’ CONTRACTOR: CARLSBAD MUNICIPAL WATER DISTRICT, a municipal corporation of the State of California Orcom Systems, Inc. (name of Contractor) By: 2?kiiAh-L (sign>re) Marilyn Beem, President (print name/title) ALETHA L. RAUTENKRANZ Secretary By: 2 1997 Chris Weber, Executive Vice d \ Date (printnameititle) President & Secretary (Proper notarial acknowledgment of execution by Contractor must be attached.) (President or vice-president and secretary or assistant secretary must sign for corpora- tions. If only one officer signs, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering that officer to bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL General Counsel . puty General Counsel Optional Agreement - Itron.doc 14 Rev. 4/l 9196 . . ITRON, INC. EXHIBIT “A” END USER LICENSE AND WARRANTY AGREEMENT ~AQeemenl.ismadelhii -Wd ’ W. keinafter ‘Bun’, and e 19- by and between lbm. btc., a Washington . herei?after ‘find Us&. ?I% itm is in the businass of designing, manufadufng, kensing and selling electtunic and computer products whch are distributed to and users ,hereinaner l Distlibulof; WHEREAS.Oistrikrtorintendttopcovidasuct,eledrorricMdcamputsrprodudstoEndLlser, L!!EF ltrorrrequiresEndUsarkexecutelhkEnd~LicanseandWanwtyAgreemenlpciottodeliverydIheeledronicmd~produdsb NOW, TktEFORfZ, in cons&ration of the mutual txxenam and agwments hereinafter sat forth, fbun and End User hereby agrae as fofbws: sdtware flow. functional description d Licensed Software, a ~finikmdinputandoufputfilestruduresandreccrdlayouts $uding the data defmitions. Lmsad Software’. The program products in n&rina-readable form and all other programs recurded on the media to be licensed to End User. induding, but nol limited to: (a) any form d ltnn written prog and machine-readable code derived mm the source code a ramnvng . &ngwgesourcea& otherwise licensed to End User and @) any subsequent modiiitions. corractions or revisii to the program products licensed lo End User by Bon. ‘Related Duwnentation’. Any hum program listings, +w charts, input and output forms, manuals, specifications, mstructions. arxt other materials, and any copies of any of the foragoing. in any medium, related to tha Equipment an& fkensed Software and delivered to the End User. ffON 7 THE LICENSED SOFTWARE 21 22 23 24 2.5 License. ltmnhet&ygrantsbEndlJseranonexdusive, nonfransferabla, pefpelual ricerlse to use lfe lkensed soflvm, the Related Documfsntation. The Licensed Softwam, &Ming without Documentatfm and methods d the sole and excfusive m d Bon and sflall not be sold, rewalell. diisf3d 01 otherwise Ccmhcaled, diiy or indirectly, by End User b any parson, or insliMion whatsoever exced as sel forth fxarain. EndUsermay,atitswnexpeftse andisthepropertydlfmn(orandtx?rparlyvhohaskensadb tlmn). and that the proprietary infumatian is being ma& available toEndUserbyttroninconli&nceandsolelyanihebasisdEnd Us&s confidential relationship with ftron. Tha proprietary fnfonwtionisconsidered ltrontobaatradesecretofftrtm. End userwinnd x ‘eoro P rwisemakeavaiiable any Licensed Sdtware u elated Downentation, in any fam, except as required by law or judicial a govemmental order, without Bon’s * Et w&ten consent, except to employees a axrsuttants d End r who93 access to the information Is necessary lo enable End User to exercise its rights under this License. SECTfON 3. PAYMENT End User acknowkdges that Distributor will provide paymant to Bun on End Users behalf lo provide consideration d this Agraement and that End User is the baneliciary of such payment. End User further understands that End User is reimbursing fMributor for such payment as part of End User’s agreement for obtainii the Equipmenl and Limsed !Mtware. SEClfON 4. WARRANTY AND WARRANTY EXCLUSIONS 4.1 42 JVanardy. Hrcn warrants that, for the periods set forth below horn the date of shipment lrom ftron. each item of Equipment till be free fmm dalects in material and workmanship and the Licensed Software shall perlorm substantially in adance with the functional Specification Document: upsraded Equipmefi All new Equipment and Licensed Software 14months ftmr~ shall repair or provide an equivalent replawnar# d any item dEquipmentandLicensedSofhwedaemeddafectiveatno WHETHER EXPRESS, IMPLIED OR STATUTORY, BfCLUDfNG BUT NOT WfTED TO UPLfED WARRANTIES GF YERCtfANTABlfJTY AND FfTNESS FOR A PAMfAR PURPOSE OR ANY IMPUED WARRANTY ARfSfNG FROM CD&fG~o;~;FORMANCE, COURSE OF DEALfNG DR aervicasareavaitabb,theycanbepmvfdedby&nrndsrthis Agreement at ttronk then applicable time and mate&t cMgas and travel exoenses. R&k d damage or increase in service time caused by failure lo continually provide a suitabte installation envirownfznt. Repair ot damage or increase in service time caused by the usedtheEqurpmentacLicensedSoMarefcxdharthan data prwssing purposes for whii designed; a neglect or misuse. Repair d damage caused by accident a disaster, which indudes. but is nol limited to bra, flood, submersion in water, . (4 Mid. fighckg, lfampcah -mequenl lo deliveq, or facamajelue. fnspedian d allemd Equffxwnt, repair d damage a &reaseinswicetimecauredbyattwtionsnotautho&d by bran, which afterations indude, twt are y ff$~l;~~ dWiStiOflflUIl~Sphysical.- Equipmerldesign. Repair d damage a incmsainservia3timeaausedbyhe cmmionfrcrnoneftmntnodeltoanotherof Uw installation arertxWdanhWue~ranyqItheb.nqohg ~=fyp~~r~~a@arrqwwwdq*. asaaabdwllhha mmngema~arek@imdEq@nmt ON 5. &HE AND QBLIGATfm h&Q& llron Will defend End User against a claim fhafEqu@nanfalirmsedSofhwesuppliedhereudertirbges rU.S.ment.ami&t.badesewtaottmrxowietarvmrtv 5.1 .\ c; 52 5.3 5.4 I- ( ‘-- mm3 flghl&Uufthe&i~~saperatimpursuGtbrc&mt’~ release and madifiiticm level d any Licensed Sdtwam supptii by I@ infhgas a U+ patent, copyriqht. trade secqt a dher papnaarypmpenynghl,~~~w.raalhg~s* dama El andattomeyeesfinal amrded,prov&dthatz % Usarfmnptfynotifiis oninwritiqdthaclaim,aml lfm has sob cattrd d the defensa and afl &ted settlement negotiatii. ftron’sobfigationunder this Section is andiied on End User’s ageemer$thatiftheEquiprnent,ortheofmtionthered,athe Licensed Software, becomes, a in &on’s opinion is likely to becMeVlesubjeddsuchadakn,EndUserwillpem\it~,at Ilron’soptionandexpense,eithertoprocuretherigMIorEndUser to awtinue using the Equipment a Licensed Softwam o( to replace a maMy the same so that they become noninfringing; such replacanenls a modiiitions shall be functionally equivalent to the Equipment and Licensed S&ware; and if the foregoing attematives are not available on terms which are reasoMMe in ban’s judgement, End User wig return the EquipmentaUcensedSoftwareonwittenreqGesttottrcn. Ron shallrefundtoEndikertheEndIlse~sthenbookvalueo(such re.tumed Equipment and Ucensed Software as depreciated. bon has no liilily for any daim based upon the combination, operationausedanyEqurpmentorLicensedSdtwresupptii hemnderwitheq@mentasofhmenc4appfovdbytfmn,a based upan End Use13 alteration d the Equipment a modiication Tfler den bnsedSoftwres@iedhereunder. orqdngstatestheentireobIigatbnd&mwithrespectto kdrin~emenl d patents. cumiahts. trade secrets or athe~ I&. fTf3ONs TOTAL UASfLfTY FOR OAMAGES TO EH) USER SHALL NOT EXCEED THE AMOUNISPAJDSYENDUSERFOR THE EQUIPMENT AND KXNSED SOFIWARE. IN NO EVENT SHALL KRON BE LIABLE, WHETHER fN CONTRACT, NEGLfGENCE, TORT, OA ON ANY OTHER BASIS, FOR COVER OR FOR INCfMMAL, CONSEOUEf4TfAL (INCLUDWG LOSS OF REVENUE, BAVINGS OR PRGFKS OR EXEMPfARY DAMAGES ARfBlNG OUT OF DR # J ONNECTfON WfTH THE SALE, -CE, USE, PERFORMANCE, FAfLURE ON MTERRUPTfON IN THE OPERATfON OF THE ENT OR LfCENSED SOFMARE. &CllrvanatsUBttheE@pfMttad lllebselvkeuldecurankstendud servlce~TheeeforsefviceahatlbealHmn~lhen 9” prevaBqrabs. AtEndUse~soption,thesewimqmamentmay ammence~thedatedexpirationdtheinitialwamantyperiod falheEtlt+mtandlocLicensedsdlware. ConffdenMlhr Excepl as requid by law a judicial a govemmentat&er,fkonandEndtJseragmebhofdfnsbictest confiiaftinformationandmateriatwhichisrdatedtoeittw v s business, rvhich is designated as proprietary and cwrdentiafherein.awhichis relatedtotheperformanwbythe paties of lkir abfigatias under this Agreement. fVopdetary and 5.5 5.6 5.7 codiienlial infomwon includes, but is not limited to the terms d this 4reement. information related b research, devetoprnent, pting. trade secrets, customer lists, salaries a business aflairs d the parties to this Agreemenl. The parties’ obkgatrons d cc$~~~under Ihs Agreement shall surwve temxnatxm of ement u L ce sed Software hfodiic&g Ron’s obligations hereubr may’ hen adversely affected h ke event End User modifiis Ihe Equipment or Licensed Mhvare Q uses any aachmenl, feature, or device on Ihe Equipment, wifhout first otttaining l!rods written approval. Lawa ttronshaltwmptywiU~pro&iowofU~ FederalFti Labor Standards M in the msnutacture ol 6~ Equipmenl and Licensed Sohware. irlud3 al bws pmhbiting Qo;miralion in empbymecj IOU? gxl;l thet such Ian% p6111m to Itr#r. Jemd e ato (a) j&mination. This End User License and Warranty Agreement shall become effective upon execution by ltron and End User and may terminate: (1) Thirty (3) days alter a party gives the dher party written notice of that part+ material breach d this Agreement, unless Ihe other party has made progress in curing the breach to an extent satisfadoty to the nonbreaching paq, (2) At a party3 option, upon ten (10) days written notice of tenninalion, upon any attempt by a party lo assign, delegate, sublicense a otherwise transfer this Agreement, the Licensed Software, the Related Dccumentation, or any d its rights or obligations utder this Agreement without the phor mitten consent of the (3) zg$ &tim upon ten (10) days written notice of termination, it thb dher party becomes insolvent. executes an assignment for the benefit oi creditors, cf becomes subjecl lo bankruplcy cr receivership proceedings. (b) Riahts and Obliaations Uwn Termination. Upat termination of this Agreement: (1) End Useh obligations under paragraph 2.5 (‘Proprietary Information’) and the parties’ obligations under paragraph 5.4 (Xodiintiality’) shall survive the termination; [r End Usets Mware License rights under Sedion 2 shall immediately cease; End User shall delete the Licensed Software lrun all other sdhvare into which it has been memed: and End User shall immediately deliver to ftrcn’or destroy all copies of the Licensed Software and Related fbaxnentation: however. End User may, upon Itron’s prior witten consent, retain one (11 copy d the Licensed Sdtware and f&Wed ooamie~tatfon for arch& purposes *, and ti EndUwahafLwM1onefl1moMafterOte ‘~’ teMtiondtiAgreemar&c&byinwitiqtofim that,tothabestdEndUse6fmomkdge,aflcopias~d me Licensed !sdlwam aid Related Doamentabon havebeenretumedaddroye4exceplforanya&va cow pew lder PafawN 5.7(b)(2). (c) Q!&&&. Eachpatpri@~bfe.rmmafeasexpressed in l$iAg~~;~~~r b any cdw rights legal , 62 its rights a obligations under this Agreement without the written. consent of the other party. . . c- i * L 6.3 6.4 6.6 6.6 &ym&&g This Agreement and p&mane shsll be go&d b hereunder ml construed in accordsnce with the fsws of the Stste of Iv rshin Enfocceabilii and Allomev If any provision in this Agreement shall be held to be invalid, illegal or unentorceable the validity. legality and enforceability d the remaining pro&ions shall m no wa be at&ted tx impaired thereby. ln the event d litigation to en! orce tha terms ol this Agreement, the prevailing panYshallbeenliUedtoreasonabkattomaylees,bc4hat tha tie dlnalandonappepl. m Nodghtarremedyhereinonlerreduponor reservedb~,~~i8BXdUSivedanycdwrigMcr~ hereinorbylaworequiyprovi&dor permitled; buf each shall be cumulativaofsvefyotherrigtrlorremedygivanherwderornow or hereafter existing at law or in equity 01 by StaMe or otharwise be enlora?d amamenf thfxewith 01 from time to tima. sandf’letn~& Notices x reundershallbeinmitiand shall ba given by eithe; party to the other by delivery or by mailing the same by prepaid registered mail addressed as specikd herein or to sudr ether address as may be substituted by written notice &$y&y&!=s~~~ Use, at addressprovidedbdOW. 6.7 6.8 ItCil: ITRON, INC. 2818 N. Sullivan Road Spokane, WA 99216 Attn: Cantrad Administrator Any sti notice. so given shall be deemed to have been received by the party to whom addressed ore the day of delivery tharad. &j&Aareemenl Each party acknowledges that it has read this Agreement, u&stands it. and agrees to be botmd by its tamts and lurlher agrees that it is the complete and exdusive statement dthe agmement between lha parties. Any terms and conditions appearingcnEndUse~sauthodzalionsshallnotapplytoa beccme a pad d this Agraamanl; this Agreement may be modified or altered only by a mitten i&ument hat refers to this Agreement and is duly exea&d by an authorizad representative d each Controlling. Headings usad in this Agreement a~ intended for convenience or reference only and shall not control cx affed the meaning or construclion ol any provision d this Agreement IN WITNESS WHEREOF the parties hereto have signed this Agreement the day and year lirst above written by their duly authorized representative. END USER: ITRON, INC. By: By: Name: Name: Tie: Title: Address: c --. . ~aaqwaGon,nametheStateinwhichincwporated Dumand-tNlJmber - CERTIFICATE OF NOTARIAL ACT State of Oregon County of Deschutes This instrument was acknowledged before me on Mav 8.1997 by Marilvn Beem and Chris Weber as President and Executive Vice President and Secretarv, respectively, of Orcom Svstems, Inc. Signature of Notarial Officer , $5&uLz2& 47 * /&~~~~I Title _. My commission expires: ] j&i/t 3 b /4 ‘? p / July 3, 1997 Vice President of Operations Orcom Systems, Inc. 1001 SW Disk Drive Bend, OR 97702 Re: Itron Meter Reading System Enclosed is a copy of the fully executed agreement with Orcom Systems, Inc. for the purchase of the FS/2 Itron Meter Reading System for the Carlsbad Municipal Water District. If you have any questions, please do not hesitate to contact this office. City Clerk ALR:ijp Enclosure c: Clint Phillips 1200 Carlsbad Village Drive - Carlsbad, California 92008-1989 - (760) 434-2808