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99-266 Resolution No. 99-266 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH MUNICIPAL SYSTEMS, INC. FOR ADMINISTRATIVE PARKING AND COMPLIANCE HEARING SYSTEM SOFTWARE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Municipal Systems, Inc. for administrative parking and compliance hearing system software, a copy of which is attached hereto and made a part hereof by reference. s/ Ed Schock Ed Schock, Mayor Presented: October 13, 1999 Adopted: October 13, 1999 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk STANDARD TERMS AND CONDITIONS (Administrative Parking and Compliance Hearing System) Municipal Systems,Inc. This Agreement made and entered into this Jz� day of October,1999,by and between Municipal Systems,Inc.,an Illinois corporation with principal offices situated at 7330 College Dr.,Suite 108,Palos Heights,IL 60463,(hereinafter referred to as MSI),and ELGIN,IL an incorporated Municipality of the State of Illinois with CITY offices situate at 150 DEXTER COURT(hereinafter referred to as"THE MUNICIPALITY"). WITNESSETH WHEREAS,the Legislature of the State of Illinois has enacted a Statute,625 ILCS 5/11-208,allowing a municipality to exercise enforcement power including,but not limited to,the regulation of code violations and implementation of fines and sanctions for violations of ordinances and regulations imposed;and WHEREAS,the Legislature of the State of Illinois has enacted a Statute, 625 ILCS 5/11-208.3,allowing a municipality to establish a system of administrative hearings for violations of ordinances and regulations concerning vehicular parking,standing and compliance;and WHEREAS,THE MUNICIPALITY is a municipality incorporated under the Laws of the State of Illinois and empoweredunder 625 ILLS 5/11-208 and 625 ILCS 5/11-208.3 to enact ordinances and regulations,impose fines for violations thereof and to establish a system of administrative hearings for violations of ordinances andregulations; and WHEREAS,THE MUNICIPALITY desires to implement its authority under 625 ILCS 5/11-208;and WHEREAS,MSI has the knowledge,experience and expertise as well as computer software to assist THE MUNICIPALITY in implementing an effective administrative hearing system;and WHEREAS,it is contemplated THE MUNICIPALITY will generate additional revenues and compliance through an effective administrative hearing system, NOW,THEREFORE,in consideration of the mutual and several promises and covenants herein contained, the parties do hereby agree as follows: ARTICLE I General Terms 1.01 THE MUNICIPALITY agrees to utilize MSI as the exclusive provider of the service and computer software for the implementation of an administrative hearing system(the"System")for the adjudication of Code violations as allowed raider 625 ILCS 5/11-208.3;and to pay MST in accordance with the terms and conditions hereinafter set forth. 1.02 MSI agrees to provide specified services and computer software to THE MUNICIPALITY in accordance with the terms and conditions hereinafter set forth. 1.03 The term of this Agreement shall commence on the first day set forth above and shall continue until the end of the thirty-sixth billing month,as that tern is defined in this Agreement. Unless written notice of termination is given by either party to the other at least sixty(60)days prior to expiration of the initial term or any extended term, this Agreement shall remain in effect for additional extended terms of twelve(12)months. ARTICLE II Terms and Conditions 2.01 For and in consideration of payments to be made by THE MUNICIPALITY as described in ARTICLE III of this Agreement,MSI agrees to provide: 2.01.1 COMPUTER SOFTWARE(the"Software"):as more particularly set forth herein: 2.01.1.1 LICENSE: In consideration of the software license below,MSI grants to the CITY of ELGIN,IL a non-exclusive,non-transferable license to use the object code for the standard or network program identified below. THIS LICENSE IS NOT TRANSFERABLE TO ANY OTHER PROCESSOR WITHOUT WRITTEN AUTHORIZATION FROM MSI. LICENSIalTG SflifW#RE PROGRAM YBI19I0N (MOS), :single U_g ser Weesion Municipal Offense system 1 Neiwark Version lNmefl Operating System)tLdimited users '4.15 i (MOs); Parking sattware 4.13 11anA1teldCo U1CPSafiwarC -.- 2.01.1.2 WARRANTY: MSI warrants,that during the term of the Agreement and any extended term,that software supplied hereunder will perform substantially in accordance with the representations set forth in this Agreement and the Software's System Users'Manual. Should the software fail to meet those requirements,MSI shall replace the defective software. This warranty shall not cover software errors or noneonformities resulting from(i)modifications of the software by THE MUNICIPALITY or a third party(ii)THE MUNICIPALITY'S negligence or fault or(iii) hardware malfunction. MSI EXPRESSLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE FURTHER TO THE FULLEST EXTENT PERMITTED BY LAW MSI SHALL NOT BE LIABLE HEREUNDER FOR ANY CONSEOUENTIALORSECONDARY DAMAGES.MSI'SONLY OBLIGATION HEREUNDER IS TO REPLACE DEFECTIVE SOFTWARE. 2.01.1.3 UPGRADES:Software upgrades to the program or programs provided under the terms of this Agreement shall be provided to the MUNICIPALITY at no additional cost.New programs are not considered an upgrade and may be offered at an additional cost; provided, however, that upon release of MST's software package identified as "Violations 2001," the MUNICIPALITY will receive a complete installed working copy along with a transfer of the current data in MSI's MOS System free of all charges.In addition,any staff trainhig required on the new"Violations 2001"system and any software upgrades to the"Violations 2001"system will be provided at no charge to the MUNICIPALITY.Failure of the MUNICIPALITY to accept upgrades when offered will void MSI's obligation to provide support services as required in Article 2.01.3. 2.01.2 TRAINING:Training for any number of employees designated by the MUNICIPALITY in the operation of the computer software and hardware supplied or approved by MSI as specified below. Pr¢videQ fte..... Ql�ate tit•~ ITattes Parkin/Com liance'rraining 20 1 Hand Held Computer Mraining 4 TOTAL: Date of Presentation:October 8,1999 2 nev:19198 2.01.2.1 If during the period of this Agreement or any extended term,THE MUNICIPALITY requests additional training,or training after initial implementation of the System,MSI will charge THE MUNICIPALITY at the current hourly rate as specified for training in Article 2.01.3 below. The rates are valid for the initial 36 month term of this Agreement. Thereafter,the then prevailing current rates as established by MSI shall apply. 2.01.3 SUPPORT to THE MUNICIPALITY forthe specified software in this Agreement shall include those services necessary to cause said software to perform in conformance with the warranty provided for in Article 2.01.1.2. In the event that service is provided for what is determined to be a problem which is not covered by the warranty,THE MUNICIPALITY shall pay for the services rendered as an extra cost according to the rates set forth in Article 2.01.3.1.: 2.01.3.1 Software warranty support costs during the initial tern of this Agreement and any extended term are covered by the monthly compensation as set forth in Articles III and IV,below. Costs for support services not covered by warranty and any additional services requested by THE MUNICIPALITY shall be charged in accordance with the following,during the initial tern and at MSI's then prevailing rates during any extended terms. DESCRIPTION OF SERVICES COST 1. Customer Telephone Support Free for 90 days $80.00 per hour From final day of training as provided in this Billed in 15 minute increments Agreement. $80.00 per hour 2. On-Site Customer Assistance $100.00 per hour 3. Technical Specialist $125.00 per person 4. Training Classes 0 day class at MSI) $80.00 per hour 5. Programming Service 6. Travel-By Air $30.00 per hour a. Travel Time b. Travel Expense As incurred $.75 cents per mile round trip(travel time included) 7. Travel-Mileage Rate(Includes travel time) NOTE: If travel by air is required,then the rates in section 6 above apply and section 7 does not. If section 7 applies,then section 6 does not. The dates set forth above are for support between 9 AM and 5 PM,Chicago time,Monday through Friday. The rate for support at other times shall be at 1.5 times those set forth above. 2.01.3.2 Initial installation shall include installation of the software on one stand alone computer or one server and two network nodes, any additional installation shall be an extra cost and provided in accordance with the rates set forth in Article 2.01.3.1. 2.01.4 SOFTWARE SYSTEM USERS'MANUALS,sample forms and reports. 2.01.5 SPECIFICATIONS FOR SUPPLIES needed or required,it being understood that THE MUNICI- PALITY need not purchase supplies from or through MSI,but any supplies obtained fortheHusky Hand Field computer's must meet manufacturer's specification's as set forth in the manufacturer's warranty. 2.01.6 MSI COVENANTS AND WARRANTS that it has the full power and authority to license the use of the computer software set forth in subsection(1)above. 2.01.7 ENVIRONMENTAL SOFTWARE is included and limited to the use of Microrim's Rbase Unlimited Multi-Application Runtime software which is necessary to operate the software. 2.02 For and in consideration of MSI providing THE MUNICIPALITY with the aforestated services and computer Date of Presentation:October 8,1999 3 Rev:10198 software,THE MUNICIPALITY hereby covenants and warrants that it will: 2.021 ENACT A MUNICIPAL ORDINANCE providing for the regulation of Code violations within the geographical boundaries of THE MUNICIPALITY as allowed by statute,625 ILCS 5/11- 208,and the assessment of fines and other sanctions for such Code violations. 2.02.2 ENACT A MUNICIPAL ORDINANCE providing for the establishment of a system of administrative adjudication of Code violations under 625 ILCS 5/11-208.3,or any other applicable Law, within the geographical boundaries of TIE MUNICIPALITY.Should MSI update or change the software which it provides,and THE MUNICIPALITY does not adopt necessary amendments to its ordinance,or THE MUNICIPALITY adds violation areas not supported by MSI's software, MSI shall not be responsible for support services or any deficiencies in the administrative adjudication system caused by inconsistencies between the ordinance and the software. 2.02.3 PROVIDE AND MAINTAIN an area on its network sufficient to accommodate the software in order that it maybe installed by MSI. It is also the responsibility of THE MUNICIPALITY to establish and maintain security measures to limitMSI's access to only the above mentioned area on THE MUNICIPALITY's network. If such security measures are not provided and maintained as required,MSI shall have no liability for any damage to the network and THE MUNICIPALITY shall hold MSI harmless from any claim for damages as a result of MSI's access to other areas on the network. 2.02.4 PROVIDE SUFFICIENT PERSONNEL,as maybe requiredto operate and/or manage the System, including but not limited to: 2.02.4.1 computer operator/system coordinator-person to input citation information,hearing dates and notices,and payment receipts-responsible for daily operation of computer system. 2.02.4.2 traffic compliance administrator-person authorized to adopt,-distribute and process parking violation notices as allowed under 625 ILCS 5/11-208.3 or any other applicable Law, collect fines and penalties for violation of parking regulations and operate the administrative adjudication system. 2.02.4.3 hearing officer-person authorized to conduct hearings on violations of standing,parking or compliance regulation violations;and 2.02.4.4 hearing room personnel-persons responsible for hearing room decorum. Note: It is undoo tood that one person may fulfill one or more of these positions depending upon the size of THE MUNICIPALITY and System needs. 2.02.5 PURSUE THE ENFORCEMENT of the Code within the geographical boundaries of THE MUNICIPALITY to the fullest extent permitted by Statute,625 ILLS 5/11-208 or any other applicable Law through use of the System. 2.02.6 PURSUE THE COLLECTION of sanctions and fines assessed pursuant to an applicable Law,to the fullest extent permitted by Law. Should THE MUNICIPALITY not collect the unposed fines, or other sanctions,within 90 days of the issuance of the citation,or other required notice,the pursuit of the collection of fines shall be through the use of a commercial collection service. 2.02.7 COMPENSATE MSI FOR the use of the System,including its software,for all offenses THE MUNICIPALITY includes for adjudication during the term of this Agreement. 2.02.8 PROVIDE THE NECESSARY COMPUTER HARDWARE that meets the minimum specifications below within 14 days of the date of this Agreement: a) 266MHZ Intel Pentium II or 100%compatible computer; b) Windows NT operating systems, C) 64mb of extended or expanded memory: Date of Presentation:October 8,1999 4 Rev:10/98 d) MS Intellimouse PS/21.1 or any compatible pointing device; e) Compatible laserjet printer; f) Hard disk with minimum of 6GB g) Colorado T3000 daily system back-up h) Modem 56,000 BPS or higher Note: Failureto meetthe above minimum hardware requirements by THE MUNICIPALITY will void theMSIwarmntyfortho Software n more particularly set forth in Article 2.01.1.2 above. 2.02.9 PROVIDE A DEDICATED MODEM LINE and modem,of 56,000 BPS or higher,within 14 days of the date of this Agreement,for use in servicing the Software by MSI. ARTICLE III Compensation 3.01 In consideration of the initial installation of hardware and environmental software(if applicable),along with installation of Software,initial training,Software license,warranty,and support,as set forth in Article 2.01,for a. period of 36 billing months,as that term is defined below,THE MUNICIPALITY agrees to make a monthly payment of the greater of the following,to MSI. 3.01.1 A"Minimum Monthly Amount"of$525.00; Or 3.01.2 Thirty-five percent(3 5%)ofall revenues collectedfront violations processed through the system each billing month that are in excess of the eight thousand three hundred fifty and no/100 dollars ($8350.00)"Base Monthly Average during the term of this Agreement. 3.01.3 The first billing month shall be established as the first full calendar month after the first administrative hearing conducted by THE MUNICIPALITY pursuant to this Agreement,and that month and each month thereafter are defined as billing months.However,once MSI performs its obligation to install the software necessary to begin operation of the system,the obligation of THE MUNICIPALITY to pay the Minimum Monthly Amount shall commence with the first calendar month after MSI completes installation. Any Minimum Monthly Amounts paid by THE MUNICIPALITY prior to the commencement of the billing months hall not affect the length of the term of this Agreement. 3.01.4 In the event that THE MUNICIPALITY is under contract with Municipal Collection Services,Inc. ('MCSP')for collection of overdue fines for violations processed through the system,the revenues collected by MCSI shall not be subject to the 35%ofrevenues payment to MSI that is setforth above. Also,payments made by THE MUNICIPALITY to MCSI each billing month shall be used to offset the Minimum Monthly Amount. 3.01.5 Billing for extra services provided to THE MUNICIPALITY shall occur at the end of the month in which they are rendered and shall be due with that month's Minimum Monthly Amount or Extension Minimum Monthly Amount,as the case may be. 3.01.6 Payments to MSI shall be due not later than 45 days after the last day of each month for which a payment is due.A late payment of 1.0%per month shall be added for any amount remaining unpaid after the 45'day. 3.02 AUDIT 3.02.1 MSI from time to time may,at its cost,hire a licensed Certified Public Accountingfirm to auditTHE MUNICIPALITY's books and records to determine the revenues collected through the System for any year during the term of this Agreement If the audit shows that the actual revenues for the audited year were greater than the revenues reported by THE MUNICIPALITY byfive percent(5%) Date of Presentation:October 8,1999 5 Rev:10/98 or more,then THE MUNICIPALITY shall,within 45 days of receipt of written notice from MSI including a copy of the audit,pay to MSI 35%of the previously unreported amount. In addition, within the same 45 day period,THE MUNICIPALITY shall reimburse MSI for the costs and expenses of the audit. Any amounts due to MSI under this paragraph which remain unpaid after the 45 day period shall be subject to a late payment charge of 1.0%per month until paid in full. 3.02.2 If MSI conducts an audit pursuant to the above Article 3.02.1,the following provisions shall apply: (i)MSI shall provide THE MUNICIPALITY with seven(7)days prior written notice as to the date and time of the proposed audit and the name and address of the auditor;(ii)the audit shall be conducted in a manner that does not unreasonably interfere with THE MUNICIPALI'T'Y's daily business and affairs;and(iii)THE MUNICIPALITY shall ensure that the auditor has access to all books and records necessary to conduct the audit. ARTICLE IV Software License;Extension 4.01 In the event that THE MUNICIPALITY chooses to extend the term of the Agreement for one or more 12 month periods,the terms of payment as set forth in Article III,above shall remain in effect,except that the Monthly Amount shall decrease as follows: clegsittgl`tlnimu�Atenfhl Ansaaxt. ;�2 � and the monthly percentage payments set forth in Article 3.01.2 shall be reduced from 35%to 25%. 4.01.1 Such payments shall be timely and THE MUNICIPALITY acknowledges and agrees that continued use of the software or the providing of services without prompt payment therefor is a violation ofthe license to use the software. ARTICLE V Termination 5.01 THE MUNICIPALITY acknowledges and agrees that MSI will have substantially performed its initial obligations under this Agreement upon(1)the installation of the computer software system within the facilities of the MUNICIPALITY;(2)the completion of training for all employees designated by the MUNICIPALITY;and(3)the conclusion of the first full calendar month after the first administrative hearing conducted by the MUNICIPALITY pursuant to this agreement. 5.02 It is agreed that THE MUNICIPALITY may terminate this Agreement upon written notice to MSI of its non- compliance with the terms of this Agreement and upon MSI's failure to cure the default(non-compliance)within thirty (30)days of the date written notice is received from THE MUNICIPALITY. In the event THE MUNICIPALITY terminates the Agreement due to MSI's failure to cure the default,no further payments past the effective date of termination will be due to MSI,except for payments due for hardware,per Addendum A hereto,if applicable. 5.03 It is agreed that MSI may terminate this Agreement upon written notice to THE MUNICIPALITY of its non- compliance with the terms of the Agreement and upon THE MUNICIPALITY's failure to cure the default(non- compliance)within thirty(3 0)days of the date written notice is received from MSI. In the event MSI terminates the Agreement due to THE MUNICIPALITY's failure to cure the default,no further payments past the effective date of termination will be due to MSI,except for payments due for hardware,per Addendum A hereto,if applicable. 5.04 It is agreed that should this Agreement be terminated by either party,MST shall have a reasonable period of time to remove its equipment from THE MUNICIPALITY. ARTICLE VI Software Use and Authorization 6.01 THE MUNICIPALITY is granted a license to use the Software set forth in Article II only so long as THE MUNICIPALITY complies with the terms of this Agreement. Date of Presentation:October 8,1999 6 Rev:10/98 6.02 THE MUNICIPALITY further covenants and warrants not to in any manner,directly or indirectly,copy, convey,transfer or allow the unauthorized use of any of the Software for which a license ruse is granted under this Agreement. Any such action or attempted action on the part of THE MUNICIPALITY shall be sufficient grounds for MSI to obtain equitable relief preventing same,without bond or notice to THE MUNICIPALITY. 6.03 If THE MUNICIPALITY does not make the payments required by this Agreement,all software used under the terns of the Agreement shall be returned immediately to MSI. Failure to return the software shall be sufficient grounds for MSI to obtain equitable relief without bond or notice to THE MUNICIPALITY to effect return thereof. ARTICLE VII Agreement Modification This Agreement may be modified only in writing,executed by both parties. ARTICLE VIII Miscellaneous Provisions 7.01 This Agreement shall be governed by and interpreted in accordance with the Laws of the State of Illinois. 7.02 This Agreement shall not be construed more strongly against the party responsible for its preparation. 7.03 The Model Ordinance and training provided by MSI are intended to comply with existing state law and designed to be consistent therewith. However,MSI does not warrant that the Model Ordinances and training are legally sufficient and THE MUNICIPALITY should determine for itself,prior to adoption,that the same comply with existing law. 7.04 This Agreement and the Addendums attached hereto,represent the entire Agreement between the parties. ARTICLE IX Notices Any and all notices required hereunder shall be by certified mail-return receipt requested-and shall be deemed properly given and received mailing to the parties at the address listed below. MSL MUNICIPALITY: MUNICIPAL SYSTEMS,INC. JAMES NOWICKI 7330 College Drive,Suite 108 FISCAL SERVICES MANAGER Palos Heights,IL 60463 150 DEXTER COURT ELGIN,ILL 60120-5555 Date of Presentation:October 8,1999 7 Rev:10198 ARTICLE XI Approval IN WITNESS WHEREOF the parties have hereunto set their respective hands and seals the day and date first above written. ELGIN,IL Municipal Systems,Inc. Municipality An Illinois Corporation ADDENDUMIS): syf •Addendum"A"-Training ❑Addendum°8 -Hardware MalR an C.0 s O Addendum'C"-1Y2K"Compliance Secretary ' f .PIKER,CITY MANAGER99 Date: 9 ,19 Attested: CITY CLERK Date: _-19-?fl Date of Presentation:October 13,1999 8 Rev:10/98 ADDENDUM "A°" ADMINISTRATIVE SYSTEM SERVICES Task Man Hours 1. Pre-Installation Planning Meeting: ,19_ 3 Hours f 1 Review Supply Requirements [I Discuss Facility Use and Make A Walk Through [I Identify Current Receipt System For Collection of Payments (I Establish Hearing Days)of the Month and time(sl: (circle one)1st 2nd 3rd 4th Day of the Month AM\PM I I Ordinance Passage Date: &Ordinance Review I]Identify Systems Personnel: [I Traffic Compliance Administrator: [I Systems/Computer Person(s): [1 Hearing Officer: [I Date Entry Clerk: 2. Key Implementation Dates: I I Ticket Issuance: 19 r."a rax.xc,as day i­lnmj [I Initial Training Date: 19_ [I Install and Software: ,19 �m���m�m an a.n•x=�Nen�re�m� s m=�+ I I Implementation Date: 19_ 3. Prepare master"Violators Notice","Hearing Forms"and other necessary system forms 2 Hours for reprinting or duplicating by the Municipality 4. Provide Technical/Consulting Assistanceto the Designated Departments On Implementa- 2 Hours tion 5. Implementation Meeting 2 Hours 6. Systems Training 8 Hours 7. Hand-Held Training 4Hours 8. Hearing Officer/Personnel Training 14 Hours I I Hearing Officer Certified Training t4) [I Hearing Familiarization(Hearing Officer,Traffic Admin.and Hearing Personnel) (2) [I Mock Trial(Hearing Officer,Traffic Administrator,Hearing Personnel) (2) [I On-Site Hearing Assistance(two hearing dates) (61 ADDENDUM G'B" HARDWARE LEASE/PURCHASE THE CITY OF ELGIN has opted to include hardware as a part of this agreement and authorizes such purchase through MSI of the required hardware in accordance with the hardware list below. iTY #'E': t fGR1Plrttf Pentium Laptop Laptop -Pentium 166mhz(minimum) -2.2mb Fixed Disk Drive(minimum) -32mb RAM(minimum) -3.5"1.44 mb Diskette Drive -Passive Matrix Display -Windows98 PCMCIA Fax/Modem LaserJet Printer -HP LaserJet 6PSElwith cable I: Bubble Jet Printer -Canon-BJC-80-Color 'i Power Strip Lucent Technologies Inc.6 Slot Custom File Server 550mhz Pentium IIL-64mb RAM-6.4gb Fixed Disk-windows-98- Ke board,mouse,CD-40X Novell Network Novell Operating System Custom PC(nodes) -450 mhz Pentium IIL-64mb RAM-6.4gb Fixd Disk-windows 98-Keyboard,mouse .CD-40X Monitor -15"color display monitor Intemal Tape Backup SEAGATE TAPESTORE 8GB IDE/with 5 tapes Intemal Modem A-OPEN 56K INT Network Cards Network Hub HANDHELD RIfF(iTER 5 : Hand-Held Computer -Husky FS2 5 1 st Year Maintenance Plan -Maintenance Plan After Warrant 5 2nd/3rd Year Maintenance -Maintenance Plan Plan 5 Hand-Held Accessories Single Unit Docking Cradle 3 -12v Recharger 5 -Cable and Connectors 5 Nylon Carrying Cases 5 Sleeved Battery Set -FS/2 Rack(Single(Mounting Kit -FS/2 Rack(4 Unit)Mounting Kit 5 -FS/2 Rack(6 Unit)Mounting Kit -FS/2 Rack Joining Kit HANDHELD PR(NTER 8 AGMESSORY 5 Portable Printer -O'Neil 3"Paper Accessories -Holster,All Weather Spare Paper Holder Spare Battery Holder4 Spare Battery 5 -Coiled Cord w/RJ45 5 -Adapter,RJ-45 to DBS FEM -Multi Unit Battery Charger 4 CASE 1 Paper 3.0 x 1,000"Paper Roll MSI COVENANTS AND WARRANTS the computer hardware supplied to be adequate for all purposes contemplated for usage. HARDWARE OWNERSHIP:It is agreed that upon the expiration of the initial contract period THE MUNICIPALITY shall be the owner of the computer hardware and MSI shall execute and deliver a bill of sale therefor to THE MUNICI.PALITY, WARRANTY:All hardware purchased has an extended manufacturer's service warranty of 3- years. DELIVERY: MSI purchases and accepts delivery of all equipment in advance of shipment to THE MUNICIPALITY in order to load,configure and test each item. These functions are performed as a service to THE MUNICIPALITY,and this period may reduce the original manufacturer's warranty period. HOLD HARMLESS: THE MUNICIPALITY agrees to hold MSI harmless for all claims, damages,losses and expenses resulting,in whole or in part,from hardware defects or failures. PRICING: THE MUNICIPALITY agrees to make a monthly Lease/Purchase Payment of PLOAS;6 INITIAL OPTION CHOSEN ---------------------------- or purchase the hardware out-right for the price of. ADDENDUM 46C77 Y2K Compliance MSI warrants that the software delivered or developed under this Agreement shall be able to accurately process date and time data including, but not limited to, the calculating, comparing, and sequencing from, into, and between the twentieth and twenty-first centuries,and the years 1999 and 2000 and leap year calculations to the extent that other information technology, used in combination with the information technology being acquired,properly exchanges date and time data with MSI's software.The duration of this warranty and the remedies available to the MUNICIPALITY for breach of this warranty shall be as defined in, and subject to,the terms and limitations of any general warranty provisions of this Agreement,provided that notwithstanding any provision to the contrary in such warranty provision(s), or in the absence of any such warranty provision(s), the remedies available to the MUNICIPALITY under this warranty shall include repair or replacement of any listed item whose non-compliance is discovered and made known to the contractor in writing after the software has been accepted by the MUNICIPALITY . Nothing in this warranty shall be construed to limit any rights or remedies the MUNICIPALITY may otherwise have under this Agreement with respect to defects other than Year 2000 performance.