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HomeMy WebLinkAboutPR 17496: STAR GRAPHICS LEASE MEMORANDUM Port Arthur Police Department TO: Floyd T. Johnson, City Manager FROM: Police Chief Mark Blanton DATE: 1 -14 -13 Re: Star Graphics Lease — P. R. No. 17496 RECOMMENDATION: The Police Department requests the City Council's authorization to amend the contract amount between the City of Port Arthur and Star Graphics of Beaumont, Texas for copier lease and maintenance for the Police Department. The BuyBoard contract was for five (5) years at a cost of $964.14 a month or $11,569.68 annually, with the option to cancel at any time. Due to the cancellation of another copier maintenance agreement with Copy & Camera Technologies of Lafayette, LA, the current contract will need to be modified to replace the copier of the cancelled contract and the contract has exceeded the contract amount. There is a need to amend the contract to increase the amount by $293.00 per month or $3,516.00 annually. BACKGROUND: On November 27, 2012, per Resolution No. 12 -559, the City entered into a five (5) year lease agreement with Star Graphics of Beaumont, Texas, for copier rental and maintenance through BuyBoard. The total of this lease agreement was $964.14 per month or $11,569.68 annually. The amended contract exceeds the amount by $293.00 per month or $3,516.00 annually. BUDGET/FISCAL EFFECT: Funds are budgeted in Account No. 001 - 1101 - 521.51 -00. STAFF/EMPLOYEE EFFECT: None. SUMMARY: The Police Department requests the City Council's authorization to amend the contract amount between the City of Port Arthur and Star Graphics of Beaumont, Texas, for copier lease and maintenance. The BuyBoard contract was for five (5) years at a cost of $964.14 a month or $11,569.68 annually, with the option to cancel at any time. Due to the change in one (1) copier to fit the department's needs, the contract has exceeded the original amount. There is a need to amend the contract to increase the amount by $293.00 per month or $3,516.00 annually. P. R. 17496 1/14/13 jt RESOLUTION NO. A RESOLUTION AUTHORIZING THE AMENDMENT OF THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND STAR GRAPHICS OF BEAUMONT, TEXAS, FOR COPIER LEASE AND MAINTENANCE; FUNDING AVAILABLE IN ACCOUNT NO. 001-1101-521.51-00. WHEREAS, on November 27, 2012, per Resolution No. 12 -559, the City entered into a five (5) year contract with Star Graphics of Beaumont, Texas, for the rental of five (5) copiers and maintenance contract through BuyBoard; and WHEREAS, the estimated cost of the rental service for five (5) years was $964.14 a month or $11,569.68 annually; and WHEREAS, the change is replacing one of the black and white copiers with a color copier; and WHEREAS, due to the change in the type of one (1) copier, the amount of the contract has exceeded the estimated amount of $964.14 a month or $11,569.68 annually; and WHEREAS, there is a need to amend the contract to increase the amount by $293.00 a month or $3,516.00 annually to cover the cost of the change of one (1) copier. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions of the preamble are true and correct. Section 2. That the City Council herein approves the amendment and the City Manager is herein authorized to execute the amendment to the contract with Star Graphics of Beaumont, Texas, in the amount of $293.00 a month or $3,516.00 annually to cover the cost of the change of one (1) copier, in substantially the same form as attached hereto as Exhibit "A ". Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED ON THIS day of January, A.D., 2013, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: • Councilmembers: • NOES: Deloris "Bobbie" Prince, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: 7C) a is Tizeno, it AtYrney Y APPROVED FO ( DMINISTRATION: Floyd T. Johnson, City Manager I i 1 Mark Blanton, Chief of Police APPROVED AS TO AVAILABILITY OF FUNDS: Deborah Echols, Director of Finance S awna Tubbs, Purchasing Manager EXHIBIT ggio Amendment to Contract Original Contract # Supplemental Contract # (if any): Lessee or Customer: City of Port Arthur I Lessor or Lender: Star Graphics, Inc. In this Amendment to Contract (the "Amendment "), the words "You" and "Your" mean the lessee (the leasing customer) named above. "We," "Us" and "Our" mean the lessor named above. This Amendment is hereby made a part of and incorporated into the above - referenced Contract, as the same may have been amended from time to time (the "Contract "). As supplemented by the terms and conditions of this Amendment, the provisions of the Contract shall remain in full force and effect, provided that, in the event of a conflict between any provision of this Amendment and any provision of the Contract, the provision of this Amendment shall control. You hereby authorize Us to insert the Original Contract Number and/or Supplemental Contract Number (if any) above following Your execution of this Amendment. 1. Additional Equipment (if any). If any equipment is listed below under "Additional Equipment Description," then this Section 1 is part of the Amendment and You hereby agree to finance from Us, in addition to the Equipment referenced in the Contract that is not Removed Equipment (as defined below), such additional equipment (together with all existing and future accessories, attachments, replacements and additions thereto, the "Additional Equipment ") upon the terms and conditions stated herein and in the Contract. Such Additional Equipment shall, following the effective date of this Amendment, be deemed to be "Equipment," "Goods" or a similar term as defined in the Contract. You hereby unconditionally represent and warrant to Us that (i) the Additional Equipment will be used solely for commercial purposes and not for personal, family or household purposes, (ii) all of the Additional Equipment has been fully delivered and installed at Your place of business, is operating in good working order, meets all of Your requirements, and is hereby irrevocably accepted by You, (iii) there are no related side agreements between You and any third party relating to the Additional Equipment, and (iv) no cancellation rights have been granted to You relating to the Additional Equipment, this Amendment or the Contract. Additional Equipment Description: 11 See attached schedule for additional listing Quantity Equipment Make, Model & Serial Number Quantity Equipment Make, Model & Serial Number 1 MX-4111N Location of Additional Equipment: 2. Removed Equipment (if any). If any equipment is listed below under "Removed Equipment Description," then this Section 2 is part of the Amendment and You agree that such equipment is removed from the Contract and, following the effective date of this Amendment, shall not be deemed to be "Equipment" as defined in the Contract. Removed Equipment Description: 11 See attached schedule Quantity Equipment Make, Model & Serial Number Quantity Equipment Make, Model & Serial Number 1 MX -B402 1 3. New Payment (if any change). Unless "No Payment Change" is checked below, the new periodic payment applicable to the Contract, as of the effective date of this Amendment, shall be as follows. ❑ No Payment Change. New Payment: $1,257.14 per © month ❑ quarter ❑ other: . This payment change is not retroactive and shall not take effect until the effective date of this Amendment. Check here U if "New Payment" amount includes sales /use tax. You also agree to pay any and all other charges provided for in the Contract. 4. Modification to Remaining Term (if any). Unless "No Change to Remaining Term" is checked below, the new remaining term of the Contract, as of the effective date of this Amendment, shall be as follows: ❑ No Change to Remaining Term. New Remaining Term of Contract: 61 months (beginning as of the effective date of this Amendment). 5. Miscellaneous. This Amendment will take effect beginning on a date designated by Us after We accept and sign below and will end at the same time as the Contract ends. If the Contract is renewed (whether by Your election or pursuant to an automatic renewal provision in the Contract, if any), this Amendment shall be renewed for the same period. This Amendment, in addition to the Contract, is non - cancelable and may not be terminated early. This Amendment, together with the provisions of the Contract not inconsistent herewith, constitutes the entire agreement between the parties with respect to the matters addressed herein, and shall supersede all prior oral or written negotiations, understandings and commitments. No modification or addition to this Amendment shall be effective unless it is in a writing signed by both parties. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute the same instrument. A facsimile or other copy of this Amendment shall have the full force and effect of the original for all purposes, including the rules of evidence applicable to proceedings in a court of law. Accepted by Lessor: , Lessee: By: X By: Date: Print Name: Date: 527081 v2 Amendment to Contract 8 -11 Star * Sales Order Agreement g I ' aIl1CS Date 1/11/2013 Buyer 4785 Eastex Freeway, Beaumont, TX 77706 P.O. # Phone: (409) 892 -0671/ Fax: (409) 892 -6323 Sales Rep Chris Wolfe SHIP TO BILL TO City of Port Arthur - Police Department 645 4th Street Port Arthur TX 77640 Contact John Tatroe Billing Contoct Phone /Fax (409) 983 -8665 Phone /Fax OTY PRODUCT tY DESCRIPTION UNIT PRICE TOTAL PRICE 1 MX -41 11 N NEW 41 PPM Full Color Networked MFP 1 MX -51ABD Deluxe Cabinet 1 MX -FNX9 Inner Finisher 1 MX -PNX 1 B 3 Hole Punch Unit (for MX -FNX9 Inner Finisher) 1 AR-D51 43NT Power Filter MAINTENANCE OPTION Subtotal Sales Tax 5,000 BNV Copies and 3,000 Color Pooled copies will be added to final maintenance agreement per month. In total, 30,000 Delivery/Installation Pooled B/W Copies and 3,000 Color Copies included in lease payment per month. TOTAL AMOUNT SPECIAL CONDITIONS Less Payment (Check # AMOUNT DUE N/A - Lease Addendum to existing Lease Contract under Texas Buy Board #379 - 11. LEASE INFORMATION Lease Company Term Payment Purchase Option SG Financial 61 Months $293.00 additional per month FMV (Mirror Existing Tenn) CUS-TOMER.ACCEPTANCE STAR GRAPHICS, INC. REPRESENTATIVE Authe+¢edSi n* e4late Sgnature Date Print Name Tide Star Maintenance Agreement g raJ1i1cs Date 1/11/2013 Customer # 4785 Eastex Freeway, Beaumont, TX 77706 Representative Chris Wolfe Phone: (409) 892 -0671/ Fax: (409) 892 -6323 SHIP TO BILL TO City of Port Arthur - Police Department 645 4th Street Port Arthur TX 77640 Contact: John Tatroe Meter Contact: John Tatroe Phone /Fax (409) 983 -8665 (409) - E -Mail jtatroe ©portarthurpd.com installation and Service Agreement Options: Appropriate categories must be initialed by the Client in the box to the left of the option. Maintenance Type: Includes: Paris, Labor, Drums & Toners Contract Start Date: On Delivery Contract Term: 61 Months ITEM Base Allowance Overage Rate Overage Cycle B/W 5,000 $0.007 Quarterly Color 3,000 $0.06 Quarterly (In Addition to existing Agreement) Model Serial Number ID Number Mono Meter Color Meter MX-4111N Star Graphics, Inc. agrees to provide service and maintenance support to customer for the equipment listed on Equipment List, (the "Equipment "), attached hereto as Exhibit A or listed on this document and made a part of this agreement, subject to inspection and acceptance by Star Graphics, Inc. 1. Acceptance Acceptance of this agreement by Star Graphics, Inc is contingent upon the absence of any mathematical error and upon consistency with Star Graphics, Inc's then current prices, and upon Star Graphics, Inc's determination that equipment is in proper operating condition. Inspection and repairs necessary to bring equipment to proper operating condition shall be billed at Star Graphics, Inc's then current prices. This Agreement shall not be binding upon Star Graphics, Inc unless an officer of Star Graphics, Inc approves and accepts this Agreement by signing the Agreement. 2. Term The initial term of this agreement is for one year from the service commencement date or as specified on the face of this agreement. This Agreement shall renew automatically for successive periods of one (1) year, on the same terms and conditions at Star Graphics, Inc's then prevailing prices, except that it shall not be renewed if either party provides written notice of non - renewal at least thirty (30) days prior to the expiration of the then - current term of the Agreement. ClST.OMERACCE_P-TANCE STAR GRAPHICS, INC. REPRESENTATIVE Printed Name Title Title Authorized Signature Date Signature Date 1 of 1 Terms 8 Conditions Continued 3, Service Availability Remedial service may be requested by calling the Service Dispatcher. Star Graphics, Inc will provide service and maintenance under the terms of this agreement during the principal period indicated as Monday through Friday. between the hours of 8:OOam and 5:OOpm, excluding generally accepted holidays. Preventive maintenance will be performed in accordance with Original Equipment Manufacturer's (OEM) specifications, as determined by Star Graphics, Inc. Star Graphics, Inc shall respond, on -site, to all unscheduled remedial service requests. Except as otherwise provided herein, Star Graphics, Inc agrees to provide service and maintenance support, with respect to the Equipment listed to maintain the equipment in good working order, but Star Graphics. Inc shall not be responsible for normal wear and tear or depreciation. For those maintenance options in which parts are additional, Star Graphics. Inc shall, in its sole discretion, establish the prices it charges customers for replacement parts and components. Parts and components shall be furnished on an exchange basis and shall be selected by Star Graphics, Inc, and shall be new or perform substantially similar to new parts and components. Replaced parts or components shall become the property of Customer and exchanged parts shall become the property of Star Graphics, Inc. Any parts or service necessitated by the software, cabling or anything else not purchased from Star Graphics, Inc. as part of this system will be charged at the prevailing rates for our connected product line. 4. Charges Service and maintenance charges shall be payable by Customer in accordance with the payment terms set forth in this agreement. In addition, Star Graphics, Inc shall invoice Customer, at Star Graphics. Inc's then-current hourly rates and parts prices, for services and for parts supplied which are not covered by this agreement. In addition to the part prices and service charges payable hereunder, Customer shall pay all sales and use and other applicable taxes and shipping costs related to Star Graphics. Inc's provision of parts and services hereunder. All charges and costs for which Star Graphics, Inc sends an invoice to Customer shall be due and payable, in full, thirty (30) days from the date of the invoice. In the event Customer fails to pay, when due, any invoice or other amount payable hereunder. Customer agrees to pay Star Graphics, Inc a late payment charge on all past due amounts equal to the lesser of one and one half percent (1.5 %) per month or the highest interest rate allowed by applicable law; provided however, that this shall not be an election of remedy. Customer shall pay on demand all of Star Graphics, Inc's costs and expenses, including reasonable attorney's or collection agency's tees, incurred in enforcing Customer's obligations under this Agreement. 5. Exclusions Service and maintenance support to be provided under this Agreement does not include repairs, replacement of parts and labor caused by, arising from, related to or made necessary by: a) use of equipment in a manner not recommended by OEM; b) failure to continually provide a suitable installation environment, including but not limited to. adequate electrical power, air conditioning or humidity control; c) Customer's improper use, management. or supervision of covered equipment: d) accident and disaster, including but not limited to, lire, flood, water, wind, or lightening; e) electrical work, devices, cables. etc., external to the equipment; I) the maintenance of accessories, alterations, attachments or other devices not covered by this agreement; g) excessive electrostatic discharge, improper grounding, improper power line protection; h) service providers and parts installers other than the Star Graphics, Inc. 6. Termination This Agreement may be terminated under any of the following conditions: (a) Either party may immediately terminate this agreement or any renewal hereof by giving prior written notice o1 such termination to the other party in the event such other party becomes insolvent or institutes or permits to be instituted against it any proceedings seeking its receivership, trusteeship, bankruptcy, reorganization, readjustment of debt, assignment for the benefit of creditors, or other proceedings under the Federal Bankruptcy Act or as provided by any other insolvency law, state or federal, to the extent such termination is valid under such law, (b) Star Graphics, Inc may immediately terminate this Agreement. or may suspend services to be provided hereunder; at any time by giving prior written notice of such termination or suspension to Customer in the event Customer fails to pay. when due, any invoice or other amount due under this Agreement. (c) Either party may terminate this Agreement for a non - monetary default, if the other party tails to perform any of its material obligations set forth in this Agreement (a "Material Default "), and such failure continues for more than thirty days alter written notice is sent by the terminating party specifying the nature of the failure, Upon termination of this agreement for any reason, Star Graphics, Inc's obligation to provide service and maintenance support, as herein set forth, shall immediately cease and all outstanding invoiced amounts due by Customer to Star Graphics, Inc shall, notwithstanding prior invoice terms, become immediately due and payable. Any amounts paid by Customer to Star Graphics, Inc tor service and maintenance support shall not be refundable, If this Agreement terminates prior to the end of any term for any reason other than Star Graphics, Inc's Material Default, Star Graphics, Inc's insolvency or the institution of bankruptcy proceedings against Star Graphics, Inc. Customer shall be obligated to pay Star Graphics, Inc on demand the price of a lull one - year term as set forth in this agreement. If this Agreement terminates due to Star Graphics, Inc's adjudged Material Default, Star Graphics, Inc's insolvency or the institution of bankruptcy proceedings against Star Graphics, Inc, Customer shall be obligated to pay Star Graphics, Inc on a prorated basis for that portion of the terminated Agreement which runs from the Service Commencement Date. or its anniversary date for any renewal term, to the effective date of the termination. 7. Limitation of Liability STAR GRAPHICS, INC SHALL NOT BE HELD RESPONSIBLE FOR STAR GRAPHICS. INC'S INABILITY TO PROVIDE TIMELY SERVICE DUE TO DELAYS. IN NO EVENT WILL STAR GRAPHICS, INC. OR ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, OR AFFILIATES, BE LIABLE TO CUSTOMER FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL OR EXEMPLARY DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF BUSINESS PROFITS. BUSINESS INTERRUPTION, LOSS OF DATA OR BUSINESS INFORMATION, LIABILITY TO THIRD PARTIES, AND THE LIKE, ARISING OUT OF THE USE OR INABILITY TO USE THE EQUIPMENT. STAR GRAPHICS, INC'S LIABILITY TO CUSTOMER (IF ANY) FOR ACTUAL DIRECT DAMAGES FOR ANY CAUSE WHATSOEVER, AND REGARDLESS OF THE FORM OF THE ACTION, WILL BE LIMITED TO, AND IN NO EVENT EXCEED THE AMOUNT PAYABLE BY CUSTOMER FOR SERVICE AND MAINTENANCE SUPPORT ON THE UNIT OF EQUIPMENT INVOLVED, AS RECITED IN THIS AGREEMENT FOR THE THREE (3) MONTHS IMMEDIATELY PRECEDING THE EVENT WHICH ALLEGEDLY GAVE RISE TO THE DAMAGES. 8. Indemnification Each party shall indemnify and hold the other harmless from and against any claim. loss, liability, or expense, including but not limited to, damages, costs and attorney lees, arising out of or in connection with any acts of omissions of the other party and its agents and employees. 9. General This Agreement and its attachments, as accepted by Star Graphics, Inc and Customer, supersede any previous written or oral agreements or understandings between the parties conceming the subject hereof, and constitute the entire such agreement between the parties. No amendments or additions to the terms and conditions of this Agreement shall be valid unless set forth in writing and signed by an authorized representative of each of the parties. Waiver by either party of a breach of any of the provisions hereof shall not constitute a waiver of any succeeding breach of such provision or a waiver of such provision itself. The invalidity or unenfarceability of any term or provision of this Agreement shall in no way impair or affect the remainder thereof, which shall continue in lull force and effect. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Texas. Any disputes under the Agreement or conceming the business relationship between the parties must be litigated exclusively in the Courts of the State of Texas. If. however, the parties have agreed in writing to arbitrate their disputes, the arbitration must take place exclusively in the State of Texas unless the parties have agreed to arbitrate elsewhere. The prevailing party in any action concerning this Agreement or the business relationship between the parties shall be entitled to an award of costs and reasonable attorney's tees. Any notice or other communication required under this Agreement shall be deemed to have been duly given if it is delivered personally or by facsimile with proof of receipt. or sent by registered or first -class mail, return receipt requested, first -class postage prepaid, to a party at the address listed , or at such other address provided by the party. '10. Acceptance initial