HomeMy WebLinkAboutC-1126 - Computer use & service agreementApril 26, 1972.
�Ir. Gordon Lenncn, Manager .
The National Cash Register CmVany
1602 Nort;,i Grand Avenue
Santa Ana, California 92702
Dear Gordon:
�Y
Please consider this letter as official notification of termination
of the NCR 500 lease agreement between the City of Newport Beach and
The National Cash Register Company. Under the terms of the agreement
written notice of termination must be given at least ninety (00) days
in advance. Therefore, the City of Newport Beach will continue the
agree:ent through July 31, 1972, in accordance with the termination
clause.
We. have enjoyed the association and are lcoring forward to our own
in -house NCR installation in_the vear_future.
Ve =y truly yours, \)
Finance Direc
GP:sh.
VDS ORIGINAL CONTRACT DATED_41Z8_4&19 67 AMENDMENT DATED_t___9__t
HE NATIONAL CASH REGISTER COMPANY
OHIO 45409 J
elf-
%DAYTON,
TO
❑ FULL SERVICE EQUIPMENT RENTAL CONTRACT T 500 SERIES CONTRALTI
STREET
ADDRESS 3300 Newpnrt 81v(i
N
RE F
C . R NO. 77 -7-333
zg z
n
FOR USE AT
AMENDMENT
AMENDMENT
CITY hlewRgrt Beach, California
NO.
DATE
It is mutually agreed by and between The National Cash fegister Company (hereinafter termed
"NCR!") and the undersignej (hereinafter termed the "Leslee") that the NCR equipment rental
contract entered into between them bearing the above reference number is hereby amended as
to the length of the r . 6ntal term and the Basic Monthly Rental as stated below. All the
i
other terms and conditidns of said contract continue in force without change.
14
A
4
1. The term of said contract is hereby extended for a period of _ years which shall,
114
expire i 19 of the date when' the term of said
W
_71_reg4rdless
contract would otherwi6i p have expired. Following the �xpiratioji of such Extended Term the
i.w
W
of said.contir act relating to the continued rental ofkthe equipment and to notice
,provisions
of changes in rental ratks, ordinarily applicable to the period following the expiration of
the initial fixed term oVjears originally specified in said contract, shall apply.
2. The basic monthly rental is changed to that set forth in the following tabulation:
MODEL NO. OR IZE
SERIAL NUMBER
BASIC
MONTHLY RENTAL
z
517-1 Central Processor
480.00
14i Speed Card In :All
1 -7
Z0,00
Hi Speed Card Out
10.00
Al ha From Console
20.00
Lo SReed TaRe In
Z50`00
590-2 Console W/O Mag Ledger
11109 7- (OT
150.00
551-2 Punch Card & Printer. ontroller
Tor, 0()
541-1 Line Printer
150.00
577-1 Card P ch
-a 1:5 zli
563-2 5d CPS iraRe Reader
0 1
34-00
s.
CHECK HERE IF LIST OF TOTAL 09, ATTACHED LIST
ADDITIONAL EQUIPMENT IS ATTACHED
TOTAL
M PLUS APPLICABLE TAXES
TAX E XEMPT
El STATE El CITY E] COUNTY
ALL THE OTHER PROVISIONS OF SAID CONTRACT AS IT MAY HAVE BEEN AMENDED PRIOR TO THE EXECUTION OF THIS AMENDMENT AND NOT HEREIN
CHANGED SHALL CONTINUE IN FULL FORCE AND EFFECT. NOTICE OF ACCEPTANCE OF THIS AMENDMENT BY NCR IS HEREBY WAIVED.
(PRINT Lessee -City of Newport Beach
(SIGN) Lessee City of Newport Beacjbf
OR
TYPE) City Manager
RT
RT
TITLE
I I ti mcffia6e-r-
ACCEPTED -The National Cash Register Company
BRANCH Santa Ana, California 771
A
Date
CITY STATE CODE
PREPARE TN MIPLICATE-AvOwind Si9ndum
COPY (1) CUSTOM
NEW CONTRACT ❑ REPLACES El CHANGE OF LOCATION OF EQUIPMENT
CONTRACT DATED FORMERL'V, . SHOWN OF[ NCe WP .. Nd:-' DATED_ [
i
NCR - THE NA NAL CASH FREGISTER CORNY
® DAYTON, OHIO 45409
FULL SERVICE.EQUIPMENT RENTAL CONTRACT
THE NATIONAL CASH REGISTER COMPANY, HEREINAFTER CALLED "NCR" HEREBY AGREfB"' °'
TO RENT TO: _
CUSTOMER
NAME
City of tiew
CONTRACT
DATE
coRlRRAnoxs
FAIN VLLAVR V!
YVS...
p......E
STREET ADDRESS
3300 Newport Boulevard
F
.. ....... VIRIFiOR
CITY IieiV Grl, 1][.a C(I
Reach
CQUNry Uran 'L�
Orange
SIT }� a
�Lalifor. i
CODE II
926610
STREET ADDRESS
FOR USE AT
CITY
COUNTY
STATE
ZIP
CODE
HEREINAFTER CALLED "LESSEE;' AND LESSEE AGREES TO RENT FROM NCR FOR A
TERM OF YEAR(S) THE EQUIPMENT IMMEDIATELY HEREIN BELOW DESCRIBED UPON At Time of Signing Enter Only If
THE TERMS AND CONDITIONS SET FORTH ON THE FACE AND REVERSE HEREOF: Purchase Option Deposit Collected
MODEL NO. OR SIZE
SERIAL NO.
BASIC
SPECIAL MONTHLY
SERVICE CHARGE
aPEC.
cox.:
SALABLE
Cq'
OPTION
MONTHLY RENTAL
IPAR. 171
PAR'
CATEGORY
!Ax :o
PRICE
682 -500 Card leader
40.00
581 -3 Controller
70.00
u82 -500 Cara Reader
40,00
531 -4 Controller
Freight Handling CharPes 5
-
CHECK HERE IF SCHEDULE -A- OF TOTAL
PLUS APPLICABLE TAXES (PAR.11:�
ADDITIONAL EQUIPMENT 15 ATTACHED SCHEDULE "A"
TAX EXEMPT
TOTAL
165.00
❑ STATE_ ,D.CITY ❑ COUNTY
TRADE -IN ALLOWANCE (PAR: 15)
DEPOSIT FOR PURCHASE olvroN
RECEIVED' $
DESCRIPTION
SERIAL NO.
ALLOWANCE
ON EXECUTION HEREOF IN CONSIDERATION
OF PRIVILEDGE TO PURCHASE EQUIPMENT FOR
WHICH PURCHASE OPTION IS SHOWN ABOVE
ON TERMS SET FORTH IN PAR. 20.
SIGNATURE OF NCR REPRESENTATIVE
ADVANCE RENTAL DEPOSIT
RECEIVED $
ON EXECUTION HEREOF TO BE APPLIED
AS PROVIDED IN PAR. 16.
CHECK HERE IF SCHEDULE "B" OF TOTAL
ADDITIONAL TRADE -INS IS ATTACHED SCHEDULE -B-
MONTHS @ S FINAL MONTH @ $ TOTAL
SIGNATURE OF NCR REPRESENTATIVE
EXCEPT AS HEREINAFTER SPECIFICALLY STATED TO THE CONTRARY THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION SET FORTH ABOVE.
THE EQUIPMENT IS WARRANTED TO CONFORM TO SUCH DESCRIPTION. SUCH WARRANTIES ARE EXCLUSIVE OF ALL OTHERS WHETHER THEY BE OF MERCHANT-
ABILITY OR OTHERWISE AND WHETHER OR NOT THEY ARE OR MAY BE IMPLIED. IN NO EVENT SHALL NCR BE RESPONSIBLE FOR SPECIAL OR CONSEQUENTIAL
DAMAGES FROM ANY CAUSE WHATSOEVER.
City of tdewport Beach
City
[PRINT Lessee
(SIM) Lessee of Newpqrt
OR City Manager
TYPE) By
- Title
_.
NCR
AOFTED — The Natighal Cash Rey ` _ A.
BRANCH XAso— C.TIAE ! l
LIT✓ STATE CODE
TERMS AND CONDITIONS OF RENTAL
1. SERVICE:
Until this rental contract shall be terminated by the pessaSe of time, cancellation r by the exercise by Lessee of its option to purchase the leased equipmenl NCR shall without
additional charge to Lessee remedy any defect resulting from detective workmanship r material or from normal us and wear. NCR shall m addition furnish such inspection and
dunngmtmt service as is required by its standard maintenance contract pelicable to equipment of Me class and model leased hereunder. Such service shall be providcd by NCR
charges for evening business hours, excluding Sundays and his of NCR's office or mice depot servicing such equipment. Lessee agrees to pay NCR's regular
repair repairs made necessary by Lessees n gligence, by prod. of said equipment or because of any unauthorized work on said equipment. If Lessee desires such
alter midnight and before 8:0 A.M., f the next succeeding business day, on Sunday r on a holiday, Lessee shall pay NCR's standard extra charge for such service. If
Lessee desires desires s h service regularly during any of such periods as separate agreement for such service must be executed by the parties. With respect to Me leased equipment NCR
will, requested by Lessee, without additional charge, render assistance to Lessee in training operators hired by Lessee, in designing forms and in devising system applications.
2. COMMENCEMENT OF LEASE TERM:
The term of this lease shall commence upon delivery and installation of the leased equipment.
3. SERIAL NUMBERS AND OPTION PRICE:
The equipment delivered to Lessee shall be in accordance with the description set forth on the reverse hereof on the date Lessee executes this lease agreement. NCR may of any
timecinert on the oreverse hereof at Me place provided the "oplron price,' "salable am9ory" and [serial number(s) of the equipment when ascerfa fined. The "option Raiff: end
equipment delivers Mat described shaft be based on NCR's U. S. Price List
4. WARRANTY:
In the evenLessee at the time of the execution hereof makes a deposit for Purchase exercises s option of a time, computed from Me deliveryry and installation f
the leased equipment, hen, had the leased equipment been initially purchased by Lessee, NCR's published such period applicable to equipment of fbe ape and salable
category leased would still be in effect NCR, for a period equal to the remainder of such guarantee period, warrants Me leased equipment against defects in material, workman-
ship o operational failure from ordinary use. NCR's obli9y Lion d the equipment does not meet these warranties is lmited solely to correcting the detest or failure, without harge,
uring NCR's normal business hours set forth in paragraphs l above. Lessee hall pay for any repairs not covered by this warranty or any unauthorized repairs. Upon the expiration
}f this warranty period NCR will make maintenance service available in accordance with its standard maintenance agreement. Such agreement must be entered into immediate], upon
he expiration of such warranty period.
5. INSURANCE:
Until exercise by Lessee of its option to purchase and during the term hereof NCR shell assume and, to the extent if deems practicable, insure all risk of physical loss, damage
or destruction except the results of the willful or negligmf acts of Lessee or ifs licensees, invitees, agents, servants, employees and officers, including, bus nest by way of limitation,
the failure adequately to protect said equipment.
6. TITLE TO AND RETURN OF LEASED EQUIPMENT:
Title to said equipment shall remain in NCR until Lessee exercises its option to purchase laid equipment as hereinafter provided. Upon termination of said contract by the passage
of time or cancellation, Lessee hall turn said equipment to NCR in as good condition as when received, except for the effects of normal use and of loss, damage or destruction
resulting from hazards covered by NCR's insurance.
7. TAXES:
NCR shall pay all personal property faxes assessed and payable on the equipment until a rcise by Lessee of its option to purchase. Lessee a additional rental shall pay all other
taxes. license
fees charges an against i `I' using by way of illustration only, any sales, use er compensating or similar fax, assessed against NCR and shall Pay when due any such faxes,
gains
8. RENTAL CHARGES:
The Total Monthly Rent hereunder which is defined as the sum of the Total Basic Monthly Rental and the Total Monthly Service Charges provided on Me face hereof, plus any taxes due
as Thereon provided, shall be paid monthly in advance beginning on the commencement of the term hereof and thereafter on the same day of each succeeding men% during said
term and any extension thereof. If Lessee desires to be billed and to pay rental less often All monthly special arrangements for this will be made.
9. USE OF LEASED EQUIPMENT:
The Total Monthly `end is based upon on eight (e) hour single shift operation. Upon advance notice to NCR. Lessee may schedule extra shifts of use ' any one day for a period
(I net lean than n lender month, Lessee hall pay the following charges for sech extra shift usage: (a) 30% of the Total Menthir Rent to add an additional lour (4) hour shift;
b) 50% f the Total Monthly Rent to add additional eight (B) hour shift; (c) 60% of Me Total Monthly Rent to add a additional twelve (12) hour shift; (it) IWy of the Total
Monthly Rent to del ddifiemal ixteen (16) hour shift. The Total Monthly Rent shall not be aced because of an increase in use when such increase i only occasional or
results from an emergency or from the equipment being unavailable for use, unless such unavailability results from Lessedsr negligence or willful acts.
10. SPECIALLY CONSTRUCTED EQUIPMENT:
Lessee agrees that such equipment at is indicated on M[ face hereof to be specially constructed is In fact built to its particular requirements and is net constructed according
to NCR's standard production models.
11. SUPPLIES:
All supplies including paper r rolls and ribbons, shall be furnished of Lessees xpsn... ...apt that NCR shall, without addifi...I drag. to L[sseey furnish and install ribbons,
e f MICk ribbons, if eded. at the time 1 NCR's periodic inspections. Periodic inspections shall be made in accordance with NCR's established maintenance policy for
said equipment
12. DEFAULT:
NCR may terminate this contract and fake possession of said equipment forthwith upon Lessee's failure to pay anrent when due, upon the breach of any of the other terms or conditions
hereof, f a sale r a mortgage of Me equipment be made or attemed r if, without NCR's consent, a removal 01 %a equipment from the ace of , as specified on the
face hereof, be made or attempted, or if any distress, execution, o attachment be levied hereon r upon said equipment or such action be attempted, or upon intervention
of bankruptcy or receivership, or upon the lion by the Lessee of a deed of trust assignment for Me benefit of creditors, or any other transfer or assignment. In the event
Mrs contract is terminated because of a total default by Lessee. Lessee agree, to paNCR as liquidated damages an amount which when added to the pa ments previously received
hereunder by NCR will equal the fetal payments due NCR during the first twelve months of the term hereof, except that as to any specially constructs equipment NCR shall be
entitled to aamount equal to Twenty -four month's payments on account of that equipment. The provision for liquidated damages herein shall not be regarded as a waiver by NCR
of y other rights to which if may be entitled In the event of Lessee's default whether Me same be total or only partial.
13. TERMINATION:
Lessee shall have the right to terminate this contract an ninety (90) days prior written notice to NCR provided Lessee has, or will have by the effective date of such notice, paid e
not less than twelve month's Total Monthly Rent us taxes, and with respect to specially constructed equipment not less than twenty-four month's Total Monthly Rent, plus lams. Upon
expiration f the term hereof, this contract shall automatically be extended at the same Total Monthly Rent less allowances and plus }axes, if any, and extra shift use charges, if any,
until ferminatiooe by either party on ninety 0) days prior written notice. Upon termination without cause, the obligation to pay rent shall continue until written notice of termination
has been d by NC0. Lessee, appropriate.
14. SITE PREPARATION AND TRANSPORTATION:
maca
Lessee shall, at his own expense, prior to delivery f said equipment, furnish and prepare space d access thereto, for the installation of said equipment. together with any special
machinery required to place f in the space so furnished and prepared. Lessee agrees to pay, in addition to the rental charges set forth, a zone freight charge at the raft staled for
equipment of the type leased in NCR's published Zone Freight Charge Schedule in effect on the date f delivery and installation of the leased equipment Such charge shall be
'ced and paid with the first renal payment due hereunder. Upon cancellation or other termination of this contract, except on exercise by Lessee of its opon to purcha[e Lessee
also grees to pay this same charge or that charge then in effect at the time said equipment is returned to NCR. All packing and shipping shall be in accordance with NCR's
Spec rfi cations.
15. ALLOWANCES:
NCR shall credit Lessee monthly with a portion of the total trade -in allowance (s), if any is stated on the face hereof, against the Basic Monthly Rental Charge as in this paragraph
provided. Such monthly credit shell not exceed 20% 01 the Basic Monthly Rental Charge and shall not be applied in a lesser period than thirty-six (36) months. Such credit shall be
dpendent upon Lessee reicasing 10 NCR the equipment for which such allowance is given at or prior to the installation f the leased upmenl. Lessee waives all re qq
unused trade -in allowance edit f any f this lease terminates or is cancelled ior to the expiration of thirty -six months from the commencement of the term vhereof. Any such
waived allowance hall duce Lessce' oblcTPfip'n1 to pay liquidated damages as above provided. Should id contract be terminated by Lessee under circumstances which do not
entitle NCR to liquidated damages, any g d u r difed trade -in allowance shall be held by NCR for a period of one (I) year thereafter, during which time Lessee may
apply such credit n the me terms as herein staled, to the rental 01 other equipment or purchase of other NCR equipment as provided in NCR's published price list otherwise
such allowance credit shall be retained by NCR.
16. ADVANCE RENTAL DEPOSIT:
The advance rental deposit noted on the face hereof shall be applied toward the 9th IOth, INh and 12th or IIn and fifth subsequent nth] rental as appropriate. In the event
said contract is cancelled under circumslances entitling NCR to liquidated damages a , ny unused portion of such advance rental deposit shall reduce the amount of such damages to
which NCR is [fined.
17. SPECIAL SERVICE CHARGE:
mdreal Service Charge, if any, indicated on the face hereof, is payable in addition to the established Basic Monthly Rental Charge with respect to all equipment used of a location
than ten miles beyond the corporate Irmrfs of a City or Town in which an NCR Office or Si Depot is located.
18. ALTERATIONS:
Lescharges " hall permionnof alterations to be made to sa'd equipment during the existence of this lease except as hereinafter provided: (a) NCR may, of its sole discretion, make such
,quipmenf with other NCR equipment a are embodied in its then current models. (b) NCR may, t its sole discretion, of anytime while this contract Is in effect replace
equipment 1 fM1e same del and of the same or lesser age and use, in the even} of such replacement this lease shall be appropriately amended.
19. OPTION TO PURCHASE WITHOUT PAYMENT OF DEPOSIT FOR PURCHASE OPTION:
Lessee may, of any time during the term hereof purchase the leased equipment or any of it without warranty except as to #file and description by giving notification to NCR,
ether written or verbal, of such intent and by paying the option price stated n the face hereof, o determined pursuant to paragraph 3, above less depreciation t the rate
of 10per yar (.933% per month) for each month f the term hereof for which all ms d hereunder have been aid. Provided, how a total depreciation which Les
Y apply toward r duction o1 the option price shall not exceed o amount n p ever itaf the Lessee
allowance provided the total such allowance shall not exceed 30% of such equal to 2uc } percentage pried. Lessee shall also receive relit for n equipment
however s exercise o price, d far rap pLessee sty ! the payments made for state local e tos, rater Tint oNCR'sastan fax,
maintenance contract. Such be maintenance contract shall be executed Lessee Iwithout paragraph Lessee shall be entitled wilM1OUt any overhaul charge to enter into NCR's standard
20. PAYMENT OF DFPOay [no n., n wax sum ...
any lace-in allowance credit, as provided in paragraph 15, above. Lessee sM1all 6e en fi }ltd fo�wartant service as c opnon ro purewase within the specified time limit and
to the expiration of the w anty stated in paragraph 4, above. Y Provided r paragraph 4, above, f this option is exercised prior
21. AUTHORITY OF AGENTSrr
No agent, employee o representative of NCR has any uMOrity to bind NCR to any affirmation, representation or warranty concerning the goods leased der Me contract d
unless n affirmation, representation or warranty de by an agent employee or representative rs specifically included r within this written agreement, it shell not be enforceable
by the Lessee.
22. GENERAL PROVISIONS:
This lease is subiect to acceptance by NCR I* and notice f such acceptance is waived. This lease c nfei ns fM1e 'a'g ant between Lessee and NCR and shall lle9'be
cancelled, evoked or modified exceof by greemenf and all representations as herein. bar, providcd or by wry greemenf of both patties hereto.
X AMENDS ORIGINAL CONTRACT
❑ 4DS AMENDMENT DATED_,.,.._.__..
NCR THE NATIONAL CASH REGISTER COMPANY
DAYTON, OHIO 45409
ExfEN810h AGREEMENT
TO
G FULL SERVICE EQUIPMENT RENTAL CONTRACT M 500 SERIES CONTRACT
STREET
ADDRESS
NCR
REF. NO. ; 7 _ ; _ 3?. 3
Z ,p„ Z
O r A
FOR USE AT
AMENDMENT
AMENDMENT
CITY Ncv,port Beach. California
NO.
DATE
It is mutually agreed by and between The National Cash Register Company (hereinafter termed
"NCR ") and the undersigned (hereinafter termed the "Lessee ") that the NCR equipment rental
contract entered into between them bearing the above reference number is hereby amended as
to the length of the rental term and the Basic Monthly Rental as stated below. All the
other terms and conditions of said contract continue in force without change.
1. The term of said contract is hereby extended for a period of-12---years which shall
expire _ 15 , 19_21__regardless of the date when the term of said
contract would otherwise have expired. Following the expiration of such Extended Term the
provisions of said contract relating to the continued rental of the equipment and to notice
of changes in rental rates, ordinarily applicable to the period following the expiration of
the initial fixed term of years originally specified in said contract, shall apply.
2. The basic monthly rental is changed to that set forth in the following tabulation:
�.
MODEL NO. OR SIZE
SERIAL NUMBER
MONTHLY( RENTAL
m Z.'
17 -1 Central 1 rocer:eor
$480,00
Et ew..e. Card in -
Z0,00
11' _ )ee,' Ca r4 Out
10. 00
c0.0
1'.rt Fn,ed 'rape In
25.00
C,dn, ole V.!O Nlag Led er
150.00
55i- 'unch Q ,Ir:i & Printer Controller
r
c
-:!1 -1 ;..Erie 1-rhi er
1h0.00
hi!' -s. Cary; Pt4nch
90.00 ✓.
CPS Ta ie Belvler
on '
CHECK HERE IF LIST OF TOTAL OF ATTACHED LIST
ADDITIONAL EQUIPMENT IS ATTACHED
)' ri
TOTAL
ru PLUS APPLICABLE TAXES
TAX EXEMPT
❑ STATE ❑ CITY ❑ COUNTY
ALL THE OTHER PROVISIONS OF SAID CONTRACT AS IT MAY HAVE BEEN AMENDED PRIOR TO THE EXECUTION OF THIS AMENDMENT AND NOT HEREIN
CHANGED SHALL CONTINUE IN FULL FORCE AND EFFECT. NOTICE OF ACCEPTANCE OF THIS AMENDMENT BY NCR IS HEREBY WAIVED.
(PAINT Lessee . Cit..}_of Nevrp,:)rt Beach
(SIGN) Lessee City of Newport DeacY ..
.
TY E) R City Manager
Y —
-ice R
�..
Y
TITLE
Cit' r na er TITLE
NCR
PTED The Natio al Cash Register Co any
BRANCH : :ant -a Arz.F_,
Date By
PREFAAE LICATE. Author' d 'gnatura
/NTR
_
CITY STATE CODE
CO[R (1) GUSTO
.,,. F -8243 I19VW NCR
(2) 1$tANCH
:.
i:(3). 'ORDER.. A AL
0 CITY OF NEWPORT BEACH 46
OFFICE OF THE CITY MANAGER
TO: City Council
FROM: City Manager
February 17, 1969
SUBJECT: EXTENSION OF NCR 500 SERIES ELECTRONIC DATA PROCESSING SYSTEM CONTRACT
Recommendation:
F-
That the City Council authorize the City Manager to enter into an extended two year
agreement of the current contract for the NCR 500 Series Electronic Data Processing System
to take advantage of a rental charge reduction.
In addition modify the contract to include replacement of the present card readers
with new high speed card readers.
Discussion:
The present installation, as stated in the initial recommendation to the City Council
in 1967, will meet the City's needs until the new Civic Center is completed. Therefore,
no change is contemplated until that time, when a more sophisticated computer with a great-
er capacity will be needed to keep pace with the City's growth.
The manufacturer recently made available to lessees a two year contract at reduced
rates. Rental charges continue at the reduced rates beyond the two year period and until
the system is replaced.
Entering into the two year agreement will provide a savings of $7,686.00 in rental
charges through June 30, 1972, assuming the Civic Center is completed and ready for occu-
pancy on that date. The following is a breakdown of the present charges compared with
the proposed, including delivery of the new high speed readers as of July 1, 1969:
Rental Comparison
Effective March 1969
Present Proposed
Monthly Rental $ 1,430.00 $ 1,220.00
Sales Tax 71.50 61.00
Total Monthly Rental 1,501.50 1,281.00
4 Months Savings
Monthly Rental (Including new
card readers) $ 1,430.00 $ 1,250.00
Sales Tax 71.50 62.50
Total Monthly Rental 1,501.50 5-1,312.50
July 1969 thru June 1972
36 Months Savings
Total Savings thru June 1972
Monthly
Savings
$ 210.00
10.50
220.50
X 4
Total
Savings
$ 180.00
9.00
189.00
X 36
6,804.00
7,686.00
The total monthly rental, with the present card readers, wi11 be $1,281.00 through
June 30, 1969. Upon installation of the high speed card readers in July the monthly
rental will be $1,312.50, and continue at that rate until the NCR 500 is replaced.
The new high speed card readers, marketed in December 1968, will contribute signifi-
cantly to the speed and efficiency of the computer. Their greater speed, over three times
that of the present card readers, will reduce computer operating time by at least 37k
hours per month, which is theoretically worth $315.00 per month in rental cost and will be
realized at such time when the City is using over the minimum guaranteed time.
COU IL• ���-f/
DV P05 ION: HARVEY L. HURLBURT
rn City Manager
NCR
COMPUTER USE AND SERVICE AGREEMENT
NCR 500 SERIES ELECTRONIC DATA PROCESSING SYSTEM
The National Cash Register Company, hereinafter called "NCR," hereby agrees to furnish to
CITY OF NEWPORT BEACH
Name
located at 3300 Newport Blvd. , Newport Beach, California
Address
hereinafter called the "User," and the User hereby agrees to accept from NCR the use and service
of one (1) NCR 500 Electronic Data Processing System, hereinafter called the "System," upon
the following terms and conditions:
1. COMPONENTS AND BASIC MONTHLY RENTAL
The System shall consist of the following components and the Basic Monthly Rental shall be as
specified below:
MODEL NO.
COMPONENT
OF UNITS
UNIT PRICE
TOTAL
517
Central Processor
1
455.00
455.00
Additional 200 Words
1
50.00
50.00
Low Speed In Tape
1
25.00
25.00
High Speed In Card
1
40.00
40.00
Low Speed Out Card
1
25.00
25.00
Alpha From Console
1
Z5.00
25.00
590 -2
Control Console (w /o
Magnetic Ledger)
1
150.00
150.00
551 -2
Punch Card & Printer
Controller
1
130.00
130.00
541 -1
Line Printer
1
280.00
280.00
581 -1
Punch Card Input Controller
1
65.00
65.00
582 -1
Punch Card Reader
2
35.00
70.00
576 -1
Serial Printing Card Punch
1
90.00
90.00
563 -2
50 CP S Tape Reader
1
35.00
35.00
BASIC MONTHLY RENTAL
$14
STATE
TAX ( 3 °fo )
41A 2n
CASH WITH ORDER $ ❑ CITY
® COUNTY
TAX ( 1 %)
14 4n
FREIGHT CHARGE
$ 262. 00 BASIC MONTHLY RENTAL PLUS TAXES $N497.6(
.`F a -7422 62rrr xca ❑ NO EFFECT ON PREVIOUS ORDER AFFECTS PREVIOUS ORDER
NCR REF. NO.
z
z
z
In the event NCR makes a general reduction in the Basic Monthly Rental of the
g NCR 500 System herein specified, the above mentioned Basic Monthly Rental shall
be reduced, to the extent applicable, beginning the first calendar month following
such reduction.
�i The Basic 'Monthly Rental may be increased by NCR, to NCR's then current rates,
1 at any time after the expiration of the initial term of this agreement provided NCR
I
l gives the User at least ninety (90) days written notice of such increase.
Rental charges shall begin on the date NCR certifies to the user that the System has
been delivered and installed and is ready for use, or 30 days after delivery, whichever
is later.
2. TERM
The initial term of this agreement shall be for a period of 1 (one) years) from
the date rental charges commence hereunder and shall continue thereafter until
terminated by the User or NCR. Either party may terminate this agreement at the
end of the initial term or at the end of any calendar month thereafter, provided
written notice of such termination is given to the other party at least ninety_ (90)
days in advance.
3. USE OF SYSTEM
(a) Basic 176 Hours
The Basic Monthly Rental entitles the User to (1) the operational use of the System
for a total of 176 hours during each calendar month (such operational use hereinafter
sometimes referred to as the "basic 176 hours ") and (2) service during the basic 176
hours provided such service is between 8:00 A.M. to 12:00 midnight, Sundays and
holidays excluded. Service required during the basic 176 hours between 12:00 mid-
night and 8:00 A.M. and anytime on Sundays and holidays shall be subject to NCR's
established hourly Maintenance Rates. Time during which the Central Processor is
operating under program control shall be construed as operational use of the System.
Such time shall be ascertained from a time clock attached to the Central Processor.
Time required for maintenance, except when due to the negligence of the User, shall
not be construed as operational use time. Time required to re -run programs when the
necessity for re -run is due to machine failure or machine error, except when due to the
negligence of the User, shall not be construed as operational use provided the User
has established a reasonable number of check points to detect such error or failure.
"Service" shall include replacement parts, the use of NCR's test equipment and pre-
ventive and remedial maintenance personnel.
(b) Used More Than 176 Hours In Any Calendar Month
The use of the System in excess of the basic 176 hours during any calendar month or
in excess of the basic hours of operational use permitted during a fractional part of a
month, as hereinafter provided, shall be subject to the additional rental of 30510 of the
applicable hourly rate for the System. The applicable hourly rate shall be construed as
1/1 76th of the basic monthly rental. Hours of use in excess of the basic 176 hours shall
be computed to the nearest one -half hour. Such additional rental includes service pro-
vided such service is between 8:00 A.M. and 12:00 midnight, Sundays and holidays
excluded. Service required between 12:00 midnight and 8:00 A.M. and anytime on
Sundays and holidays, shall be subject to NCR's established maintenance rates.
(c) Preventive Maintenance
The User shall make the System available to NCR at mutually convenient scheduled
t for the propose of performing preventive maintenance.
2.
4. SUPPLIES
Monthly rental charges do not include payment for supplies. NCR agrees to sell to
User at NCR's then current established prices and upon NCR's regular invoice terms,
supplies required for use on the System. Supplies used by User must conform to NCR's
Specifications.
5. PAYMENT
The Basic Monthly Rental and any additional use charges shall be billed on a calen-
dar month basis. The Basic Monthly Rental shall be billed monthly in advance and
any additional use and service charges shall be billed monthly as accrued. Basic
Monthly Rental charges for fractional parts of a calendar month shall be computed
at the rate of 1 /30th of the monthly charge for each day of such fractional part of the
calendar month and the basic hours of operational use permitted shall be computed
at the rate of eight (8) hours for each working day in such fractional part of the
month.
6. TRANSPORTATION CHARGES
NCR shall invoice User and the User shall pay a transportation charge on all ship-
ments to the place of use plus the actual cost to NCR of rigging and drayage at the
place of use. NCR shall make available to the User, at the User's request, NCR's
standard transportation charges which are the same for all NCR 500 Series Users
within each zone established by NCR and are based on NCR's average costs for
transportation to such zones. Upon return of the equipment to NCR, the User shall
pay NCR's then effective transportation charge plus actual costs for rigging and
drayage at the place of use. NCR shall provide transit insurance. All shipments shall
be made in accordance with specifications of NCR.
7. SITE PREPARATION
B. CABLES
The User shall furnish prior to delivery of the System and at its own expense, ade-
quate space, air conditioning, humidity control and regulated electrical power in
accordance with specifications of NCR. NCR shall advise User in Planning and laying
out the site and shall supply User with specifications for the site in ample time to
permit User to have the site prepared prior to delivery of the System. The User shall
provide at the site adequate and suitable working facilities and space for maintenance
personnel.
NCR shall provide one set of Standard length cables for the immediate computer
area. If the User requires cables in excess of NCR's standard length NCR shall pro-
vide same provided however that the cost of such cables in excess of the standard
length shall be at the User's expense. The length of all cables shall conform to NCR's
specifications.
9. RISK OF LOSS
NCR shall assume all risks of physical loss or damage to the System during the term
hereof because of the elements, fire, explosion, theft, attempted theft or other cause,
with the exception of the wilful or wanton misconduct of the User, its agents, servants
or employees. In the event of such loss or damage not due to the wilful or wanton mis-
conduct of the User, its agents, servants or employees, the User's liability for further
rent shall be abated during the time necessary for NCR to repair or replace the System
and the term of this agreement shall be extended for a like period.
3-
10. LIABILITY FOR INJURY OR DAMAGE
NCR shall not be liable for any claim, demand, action, cause of action, liability or
damages arising out of injury to the person or damage to the property of ( I ) the User,
(2) employees of the User, (3) persons designated by the User for training, or (4) or
any other person, other than agents or employees of NCR, designated by the User for
any purpose, prior to or subsequent to acceptance, delivery, installation and use of the
System either at NCR's site or at the User's place of business, provided that any said
claim, demand, action, cause of action, liability or damage arises out of, or in connec-
tion with, use of the System and is not caused by NCR's negligence. In the event NCR
.should be negligent with respect to the System, its liability therefor shall be limited to
damages of which NCR's negligence is the proximate cause.
11. FEDERAL EXCISE TAXES
The monthly rental does not include any provision for the Federal Manufacturer's
Excise Tax imposed upon the sale or rental of business machines, and in the event the
Internal Revenuc Service by appropriate ruling determines or it is otherwise deter-
mined that all or any part of the components leased hereunder are subject to such tax,
the monthly rental paid, m to be paid hereunder, shall be appropriately adjusted to
permit NCR to recoup any such tax which may be levied against NCR upon rentals
received.
12. STATE SALES, PROPERTY, USE AND CROSS RECEIPTS TAXES
NCR, as the legal owner, shall pay all personal property taxes levied on the System:
however, the rentals hereinabove specified are without consideration of any sales, use
or gross receipts taxes imposed on the rentals or use unless otherwise specified.
In the event the monthly rental is increased because of excise, sales, use or gross
receipts taxes, such increase shall not be added to the Basic Monthly Rental when
computing the charge for extra shifts of usage and service.
13. ASSIGNMENT
The User shall not assign or otherwise transfer this agreement, transfer or sublet the
System or components thereof, or permit its removal from the premises where origi-
nally delivered and installed without the written approval of NCR; provided, how-
ever, that nothing herein contained shall prohibit the User from using the System to
perform services for its cusn,iners.
14. MODIFICATIONS AND ALTERATIONS
The User shall not make any modifications or changes to the System or any com-
ponent thereof without the prior written approval of NCR. NCR agrees to make
available any new components developed for the 500 System at the then current price
of the new components, provided the components are compatible with the User's
System.
15. GENERAL PROVISIONS
(a) If the rentals due hereunder shall be in default thirty (30) days after payment is
due, or if a petition in bankruptcy shall be filed by the User, or if the User shall be
adjudged a bankrupt or insolvent by any court, or if a receiver or trustee in bank-
ruptcy or a receiver of the property of the User shall be appointed in any suit or pro-
ceeding brought by or against the User, or if the User shall make an assignment for
the benefit of creditors, or if this agreement shall by operation of law pass to any per-
.4- 0
AIMML
*other than the User, or if the User shall W or otherwise transfer this agree-
ment, transfer or sublet the System or components thereof, or permit its removal from
the premises where originally installed without the written approval of NCR, then,
and in each and every instance, if such shall continue for fifteen (15) days after
written notice thereof by NCR to the User, NCR, without prejudicing its right to
elect any other remedy to which it may be entitled, may elect to terminate this agree-
ment by giving written notice to the User, and shall have the right to immediate posses-
sion and removal of the System and components thereof, and the term hereby granted
shall cease, determine and come to an end. The title to the System and components
thereof shall remain in NCR during the term of this agreement and thereafter.
(b) In the event of the termination of this agreement during the initial term resulting
from default by the User, pursuant to (a) above or otherwise, the User shall pay
NCR, in addition to the return transportation charges, past due rentals and any other
charges due and payable at the time of such termination, liquidated damages in an
amount determined by adding the amount of rental specified in this agreement from
the date of termination to the end of the initial term.
(c) All drawings, diagrams, specifications and other material furnished by NCR and
relating to the use and service of the System, including the information contained
therein, shall remain the property of NCR and may not be reproduced or distributed
in any way except with the written permission of NCR. The User further agrees to
receive in confidence all information relative to the design details, operating charac-
teristics and /or coding systems supplied directly or indirectly by NCR; provided that
if the User shall use reasonable effort to maintain such confidence, consistent with the
effort which it employs with respect to preservation of its own confidential informa-
tion, or if such confidential information is disclosed pursuant to judicial or govern-
mental action, the User shall not be liable for any disclosures nevertheless resulting.
It is agreed that this restriction shall not apply to any information that may be estab-
lished to be in the public domain.
(d) Any notice or communication given or required to be given under this agreement
shall be in writing to the other party at the address stated below or at the last changed
address given by the party to be notified as hereinafter specified.
to the User:
to NCR:
City of Newport Beach
3300 Newport Blvd.
Newport Beach, California
The National Cash Register Company
address: 1602 N. Grand, Santa Ana
Local Branch Office
Attn: J. E. Preininger
Branch Manager
Either party may, at any time, change its address for the above purpose by mailing, as
aforesaid, a notice stating the change and setting forth the new address.
(e) The entire agreement between the parties with respect to the subject matter
hereof is contained in this agreement and no representations or warranties, whether
of merchantability, fitness or otherwise and whether express or implied except when
made in writing by a duly authorized officer of NCR, shall be deemed to be part of
Ws
this agreement, nor shall this agreement be deemed or construed to be modified,
amended, rescinded, cancelled or waived in whole or in part, except by a duly exe-
cuted written agreement of the parties hereto or their lawful successors.
(f) In the event that any one or more of the provisions contained in this agreement
shall for any reason be held to be unenforceable in any respect under the laws of any
State, or of the United States of America., such unenforceability shall not affect any
other provisions of this agreement, but this agreement shall be construed as if such
unenforceable provision had never been contained herein. All questions of enforce-
ability and interpretation which may arise under this agreement shall be determined
by the laws of the State of Ohio.
(g) This lease is ineffective and no liability shall attach to either party until accept-
ance by NCR in writing, notice of which is waived.
Accepted this _024FZZ day of 19�.
The National Cash Register Company
`� r l a
APPROVED AS TO FORM: CITY OF NEWPORT BEACH
/ V (User)
TIMLY SEYM City % Q,9 f1
Attorn y By yp PRO
Attest:
it
.
6'15/67 (12)
1 Fi"SOIdPtIOiI �.
2 A RESOLUTI0N OF TIE OT—, cOti rL OF THE CITY
Or NEWPOPT BEACH ABmoI"2 ori, Tim xXHCUTIOW OF
3 A C0MBUM USE An (!MVICE A=,LWM 6IITff TAR
MT101" CAS$ REGISTER C0MPANY
4
5 WHEREA5, there W been presented to the City ComeLl of
6 the City of Newport Beach a Computer Use and Service Agreement
7 between The National Cash Register Comgt ~y rnd the City of
81 Newport Beach under which said comaany agrees to furnish and the
9 City agrees to accept the use and service of onc- NCR 504 Electronij
10 Data Processing System; and
11 WHVXASO the City Council has considered the terms and
12 conditions of said agreement sad found thaws to be reasonable and
13 equitable;
14 NOW, TMEFOR30 BE IT RESOLVED that said CoMuter Use
151 and Service Agreement is hereby approved and the Mayor and City
16 Clerk are hereby authorized and directed to execute the same on
17 behalf of the City of Newport ftach.
is ADOPTED this it }), _ day of �t p 1967.
191 �, ;�.,, • � � ,
j ' Mayor Pro Tern 21± ATTEST-
221
23 ty
24
25
26
27
28
29
30
31
32
TO: Finance Director
FROM: City Clerk
SUBJECT: Contract
Contract No. 1126
�,r,
Authorized by Resolution No. E5q adopted on j�m 26, 1g67
Date Mayor and City Clerk executed Contract 28, 1967
Effective date of Contract June 281 1967
Contract with Me Natinrul (`ash Register CoiAjiatiy
.t n.
Santa Ana, California
Brief description of Contract
Data Processing System.
Amount of Contract iu147 b0 Pw MQPAh
ih
Att:
C
City Clerk