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ARF- 2381 Regular Agenda Item     4. A.    
Regular BOS Meeting
Meeting Date: 03/18/2014  
Submitted For: Deborah Hughes
Submitted By: Dana Sgroi, Contracts Support Specialist, Finance Division
Department: Assessor's Office  
Fiscal Year: 2013-2014 Budgeted?: Yes
Contract Dates
Begin & End:
January 1, 2014 to June 30, 2014 Grant?: No
Matching
Requirement?:
No
Fund?: Renewal

Information
Request/Subject
Approval of Harris Systems USA, Inc. Master License and Services Agreement for County Assessor software.
Background Information
On December 5, 2007, Gila County entered into a Master Services Agreement with Colorado CustomWare, Inc. (CCI) to purchase a RealWare software system for the County Assessor's Office. The agreement allowed for an annual payment that covered the right to use the software, as well as it provided a maintenance agreement for the software. The total price for the software and maintenance was spread out over a ten-year period.

In November 2012, Gila County was approached by CCI to see if the County had any interest in entering into a Purchase Lease Agreement with Zions First National Bank for the remaining five years' cost for the software. CCI offered the County a ten percent (10%) savings on the remaining cost of the software as an incentive to enter into the Lease Purchase Agreement with Zions. This transaction would allow CCI to receive full payment from Zions First National Bank without having to wait for five years to receive full payment from Gila County. In the final agreement reached between Gila County, Colorado CustomWare and Zions First National Bank, Gila County paid the full amount for the sixth year to CCI and entered into a Lease Purchase Agreement with Zions First National Bank for the remaining four years' cost of the software package only at a ten percent(10%) savings. On April 2, 2013, the Board of Supervisors approved CCI Amendment No. 1 for Gila County to continue the software maintenance portion of the original contract with CCI.
Evaluation
On July 17, 2013, CCI filed a voluntary petition for relief under Chapter 11 of title 11, U.S.C. (the "Bankruptcy Code"), which was converted to a case under Chapter 7 on February 13, 2014.   CCI filed a motion with the United States Bankruptcy Court to sell of all of their assets to N. Harris Computer Corporation, an Ontario corporation, and Harris Systems USA, Inc., a Delaware corporation.  The Court approved the motion and Harris Systems USA, Inc. assumed CCI's existing vendor accounts.

Harris Systems USA has initiated a Master License and Services Agreement to continue the software maintenance agreement previously provided to Gila County by CCI for the RealWare software system.  Harris Systems USA has been providing the maintenance to Gila County since January 1, 2014, but it is not charging the County for that service, since the County has already paid CCI for maintenance through March 2014. 

It is the desire of the County Assessor's Office to have the renewal period run from fiscal year to fiscal year.  Harris Systems USA has agreed to continue the maintenance coverage, at the rate quoted by CCI on the April 2, 2013, Board approved Amendment No. 1, from April 1, 2014, (at which time the CCI agreement expires), to June 30, 2014, the end of Gila County's fiscal year, in the amount of $7,130.91.  Additionally, Harris Systems USA will charge the annual rate, approved by the Board of Supervisors on the CCI Amendment, in the amount of $28,523.78, for the first full year of maintenance, which will run from July 1, 2014, to June 30, 2015. 

Subsequent year renewals are subject to an increase of up to five percent (5%). The maintenance term shall automatically renew for four (4) one-year periods with subsequent annual renewals thereafter.
Conclusion
The County Assessor was instrumental in meeting with other County Assessors that utilize the Colorado CustomWare software package and, collectively with those other County Assessors, negotiating the Master License and Services Agreement with Harris Systems USA, Inc.  The County Assessor desires to continue the maintenance agreement on the RealWare software system through Harris Systems USA, Inc. per the negotiated Master License and Services Agreement.
Recommendation
The County Assessor recommends the Board of Supervisors approve the Master License and Services Agreement with Harris Systems USA, Inc., and authorize the Chairman's signature on the Master License and Services Agreement with Harris Systems USA, Inc.
Suggested Motion
Information/Discussion/Action to approve the Master License and Services Agreement with Harris Systems USA, Inc. for the RealWare software utilized by the County Assessor's Office in the amount of $28,523.78 for the first full year of maintenance (July 1, 2014, to June 30, 2015), and to authorize the Chairman's signature on the Agreement.  (Deborah Hughes) 

Attachments
Master License and Services Agreement with Harris Systems USA, Inc.
Amendment 1 to Software Contract with Colorado CustomWare Inc
Lease Purchase Agreement with Zions First National Bank
Legal Explanation

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