HomeMy WebLinkAboutRes 2013-02-08 Contract with Vybranz, LLC for Auditing ServicesCITY OF ANNA, TEXAS
RESOLUTION NO. 2013-02-08
A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY
MANGER TO ACT ON THE CITY'S BEHALF IN EXECUTING A CONTRACT WITH
VYBRANZ, LLC FOR AUDITING SERVICES RELATING TO FRANCHISE FEES,
TELECOMMUNICATIONS, ENERGY AND UTILITIES, AND OTHER COST
REDUCTION PROJECTS
WHEREAS, this City Council (the Council) desires to secure audit services related to
franchise fee revenue and expenses related to telecommunications, energy and utilities,
and other projects to reduce costs incurred by the City of Anna (the City)
WHEREAS, Vybranz, LLC has been found to possess the necessary expertise to
provide the desired services in a cost effective manner
WHEREAS, Vybranz is charging a fair and reasonable price for their services
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS THAT:
Section 1. Recitals Incorporated.
The recitals set forth above are incorporated herein for all purposes as if set forth in full.
Section 2. Approval and Authorization of Contract
The Council hereby approves the Contract attached hereto as Exhibit 1 for auditing
services relating to franchise fees, telecommunications, energy and utilities, and other
cost reduction projects, and authorizes, ratifies, and approves the City Manager's
execution of same. The City Manager is hereby authorized to execute all documents
and to take all other actions necessary to finalize, act under, and enforce the contract.
PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 26nd
day of February, 2013.
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ENGAGEMENT AGREEMENT
VYBRANZ LLC Customer: City of Anna
101 E. Broadway Address: 111 N. Powell Parkway
P.O. Box 876 P.O. 776
Prosper, TX 75078 City, State, Zip: Anna, TX 75409
1. SERVICES TO BE RENDERED. This Engagement Agreement (this "Agreement") is made
this 26th day of February, 2013, (the 'Effective Date") by and between VYBRANZ LLC (the
"Company") and the City of Anna (the "Customer"). During the term of this Agreement, the
Company will furnish consulting and cost auditing services and advice (collectively, the
"Services"), as further described below, and as specifically requested by or authorized by the
Customer, through the City of Anna City Manager or the City Manager's designee,
Customer's Primary Agent, for this Agreement only. The Services will relate to matters or work
being done or planned by the Customer, and the Customer's current agreements with third party
providers, in the fields of Telecommunications (including but not limited to mobile, air
cards, internet), Energy/Utilities (Electric, Gas), Merchant Payment Processing (credit
cards), Franchise Fees, License Agreements and appropriate tax related reductions, and
will be within the area of the Company's technical and operating competence, and will
specifically include the following:
Review of usage and expense with cost reduction solutions. Initial approach is to review,
analyze, and audit current providers' blend of products and services to determine satisfaction of
delivery and service, and determine points of negotiation. The Company may recommend
modifications to the products with the Customer's current provider(s). The Company may also
obtain and present competitive quotes with alternative providers designed to help drive the
market -price down from either existing or new providers if deemed necessary, consistent with
State competitive bidding and purchasing laws applicable to Texas municipalities, including but
not limited to Chapter 252 of the Texas Local Government Code. No Services shall be rendered
unless set forth in a written document titled "Cost Reduction Project." Each such Cost Reduction
Project ("CRP") document shall describe the project and set forth the scope of the Services that
the Company will perform, including but not limited to:
(1) identification of any current provider and/or the type/class of potential provider(s);
(2) description of any product(s) and/or services provided or offered by any such provider(s);
(3) description of any internal controls, methods, procedures, or arrangements employed by
the Customer;
(4) estimated time of completion of the CRP; and
(5) the general approach, strategy, methods and analysis that the Company intends to
undertake in performing the CRP as relates to any of the subject matter set forth in the
ma
Each CRP document shall be signed by a duly authorized representative of the Company, and
must be separately authorized by the City Manager or the City Manager's designee in writing
before the Company provides any Services related to the CRP and before the Customer shall be
obligated to make any payments to the Company under this Agreement. Upon completion of the
CRP, the Company shall provide its analysis, findings, advice, and recommendations to the
Customer in a written form, confirming that the CRP has been completed.
The Customer is under no obligation to accept any proposal or recommendation of the Company,
or to alter or take any action to alter any product, service, or provider. Any alterations to
products, services, or providers will be in complete consultation and with the full knowledge and
written approval of the Customer.
2. PAYMENT OF FEES AND BILLING.
(a) NET SAVINGS OVER TIME. For each CRP, the Customer shall pay the
Company an amount equal to 35% of the Customer's net total savings resulting from the
Services provided in performance of the CRP for a period of 24 consecutive months. Said
consecutive 24 -month period shall begin when the Customer first realizes net savings under an
amended or a new agreement or arrangement with an existing or a new provider. The Customer
may be directly or indirectly involved in the negotiation, discussion, assessment, and/or analysis
of the Service and such involvement does not reduce or change the 35% payment to the company
of net total savings. After the date that the Customer specifically requests or authorizes the
Company to begin Services under a CRP and provided that the Company performs the scope of
services set forth in the CRP, the Customer agrees that but for the efforts of the Company,
savings as relates to such CRP would not have been achieved and will pay the Company
according to the terms set forth above.
(b) ONE-TIME SAVINGS. For each CRP resulting in only a one-time savings, the
compensation payable to the Company by the Customer regarding the Customer's net total
savings resulting directly from the Services, will be billed at an amount equal to 35% of the one-
time savings; provided, however, that such one-time savings must be realized by the Customer
within 36 months after the Company concludes its Services under the CRP.
(c) BILLING. Billing will commence within 30 days of the Customer achieving
actual net savings for each completed CRP and may result in multiple invoices or billing line
items for each completed CRP, but in no event shall the Customer be required to pay more than a
total of 35% of its net savings resulting from the CRP as set forth in paragraphs a. or b., above,
as applicable. In each case, the Customer's payments of compensation to the Company will be
made in response to invoices sent to the Customer by the Company.
(d) TAXES. The fees and charges reflected in the Services will be exclusive of any
sales, use, personal property, value added and goods/seivices taxes. Where applicable, such taxes
shall appear as a separate item on the Company's invoice and the Customer shall be liable for the
payment of such taxes to the Company. Notwithstanding the foregoing, the Customer shall not
be responsible for any foreign, federal, state or local taxes based on the Company's income or
receipts, or such other taxes based on the Company doing business in any particular jurisdiction.
3. OWNERSHIP OF WORK. The ownership of original source codes, financial models,
process design, design templates, workflow charts, art work, including sketches_ and any other
materials created by the Company in the cost reduction process, owned and used by the
Company to perform the Services shall remain with the Company. Nothing in this Agreement
contemplates or requires the transfer of any property or intellectual -property rights from the
Customer to the Company or from the Company to the Customer.
4. INDEMNIFICATION.
(a) INDEMNIFICATION BY COMPANY. Except as otherwise herein provided, the
Company agrees to indemnify, defend and hold the Customer and its agents, officers, directors,
lawyers, accountants, and employees harmless from and against any and all losses, claims,
demands, damages, liabilities, costs and expenses, including (but not limited to) reasonable
attorneys' fees and costs of any legal action arising from the Services provided in this
Agreement.
(b) SCOPE OF INDEMNIFICATION. Indemnification under this paragraph 4 shall
include, but not be limited to, claims for libel, slander, infringement of copyright, theft of
misappropriation of intellectual property, or unauthorized use of any trademark, trade name, or
service mark.
5. LIMITATION OF DAMAGES. The Company will endeavor to provide high quality
Services and a high quality Product. However, the Company is not, and will not be responsible
for any consequential or incidental damages resulting from any issues or malfunction resulting
from the delivery of Product(s) or Service(s) provided by recommended third party vendors
and/or suppliers, including, but not limited to, any interruptions of service.
6. TERMINATION OF AGREEMENT.
(a) MATERIAL BREACH. If either party is in material breach of this Agreement, the
non -breaching party may serve the breaching party with a written notice specifying the material
breach and requesting the breaching party to cure it. If the breaching party fails to cure the
material breach within thirty (30) days after its receipt of the notice, the non -breaching party may
terminate this Agreement by sending a written notice of termination to the breaching party. The
termination of this Agreement shall take effect immediately on the receipt of such notice of
termination by the breaching party.
(b) TERMINATION ABSENT A BREACH. Either party may unilaterally terminate this
agreement upon delivery of 30 days written notice to the other party. Any such termination shall
be prospective in nature only; and shall not cancel the entitlement of the Company to ongoing
payments to which the Company may be entitled under the terms of this agreement for
reasonable and necessary Services performed and completed prior to the termination date.
(c) EFFECT OF TERMINATION. On any termination of this Agreement pursuant to
this paragraph 6, the Company may immediately cease providing Services to the Customer, and
neither party shall have any further obligation to the other under this Agreement, provided that
neither party shall be relieved from any obligations or liabilities arising under this Agreement
prior to its termination, including (but not limited to) Payment of Fees for Services rendered
prior to termination in accordance with paragraph 2 and indemnification obligations under
paragraph 4.
7. INDEPENDENT CONTRACTOR. The Company is an independent contractor relative to the
Customer, and nothing contained herein shall be deemed to create a partnership or agency
relationship. There will be no joint control over the Services provided under this Agreement and
the Customer shall not assume to exercise control over any of the means, methods, sequences,
procedures, and/or techniques utilized to perform the Services.
8. WORK POLICY.
(a) The Company agrees to observe the working hours, work rules, building security
measures and holiday schedule of the Customer when on the Customer's premises, which will be
provided to the Company upon request; provided, however, that adherence to such working
hours and schedules shall not constitute justification for non -accomplishment of agreed upon
schedules and timelines.
(b) The Company further agrees to employ all reasonable efforts to meet Customer's
assignment deadlines and documentation standards, as applicable. Unless otherwise agreed upon,
the Company shall meet with Customer personnel to discuss and review the progress of the
current project assignment(s) on a regular basis.
9. GENERAL PROVISIONS.
(a) PARAGRAPH HEADINGS. Paragraph headings are for convenience only and shall
not be a part of the terms and conditions of this Agreement.
(b) WAIVER. Failure by either party at any time to enforce any obligation by the other
party, to claim a breach of any term of this Agreement or to exercise any power agreed to
hereunder will not be construed as a waiver of any right, power or obligation under this
Agreement, will not affect any subsequent breach, and will not prejudice either party as regards
to any subsequent action.
(c) SEVERABILITY. If any term or provision of this Agreement should be declared
invalid by a court of competent jurisdiction, the remaining terms and provisions of this
Agreement shall remain unimpaired and in full force and effect.
(d) SUBCONTRACTORS. The Company reserves the right to approve all
subcontractors. Nothing in this subparagraph or otherwise in this Agreement shall be construed
to relieve the Company from its obligations under this Agreement or to create any contractual
relationship between the Customer and any subcontractor, or any obligation on the part of the
Customer to pay or to see to payment of any money due any subcontractor as may otherwise be
required by law.
(e) ASSIGNMENT. Neither party may assign any rights or obligations under this
Agreement without the prior written consent of the other; provided, however, that either party
may assign any rights or obligations to a subsidiary or affiliate of that party or to any third party
assuming all or part of the business function of either party's unit which will receive or deliver
the Services and Deliverables provided hereunder upon notice of assignment to the other party.
(f) GOVERNING LAW. This Agreement will be construed and enforced in accordance
with, and governed by, the laws of the State of Texas in the United States of America without
giving effect to any conflict of laws principles. The parties hereby consent to the personal
jurisdiction of the courts of the County of Collin, Texas, and waive any rights to change venue.
10. NOTICES. All notices required by this Agreement shall be in writing and sent by Facsimile,
Federal Express, or U.S. Mail, Return Receipt Requested as provided below. Such notice shall be
sufficient for the purposes of this Agreement only if sent to the parry's "Address for Service" as
listed below. Such Address for Service may be changed by either party by serving notice (in
compliance with this paragraph) on the other parry. No notice sent by facsimile shall be
sufficient without a confirmation receipt.
Company's Address for Service:
VYBRANZ LLC
101 E. Broadway
Prosper, TX 75078
Facsimile:
Customer's Address for Service:
Customer: The City of Anna
Address: 111 N. Powell Parkway
City, State, Zip: Anna, TX 75409
Facsimile: (972) 924-2620
11. ATTORNEYS' FEES. In the event of any legal, equitable or administrative action or
proceeding brought by either party against the other party under this Agreement, the prevailing
parry shall be entitled to recover the reasonable fees of its attorneys and any costs incurred in
such action or proceeding including costs of appeal, if any, in such amount that the court, or
administrative body having jurisdiction over such action may award.
12. CURRENCY DENOMINATIONS. All currency denominations are in United States dollars.
13. WARRANTIES; LIMITATIONS ON LIABILITY. THE COMPANY MAKES NO
WARRANTY, REPRESENTATION, OR PROMISE NOT EXPRESSLY SET FORTH IN THIS
AGREEMENT. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN THE
SERVICES ARE PROVIDED "AS IS." THE COMPANY DISCLAIMS AND EXCLUDES
ANY AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE AND
FITNESS OF THE SERVICES FOR A PARTICULAR PURPOSE. THE COMPANY DOES
NOT WARRANT THAT THE SERVICES OR RELATED MATERIALS WILL SATISFY
CUSTOMER'S REQUIREMENTS OR THAT THE SERVICES AND RELATED SERVICES
WILL BE WITHOUT DEFECT OR ERROR.
14. ENTIRE AGREEMENT. This Agreement supersedes all previous agreements between the
parties, contains the entire understanding between the parties, and may not be changed, except by
writing, duly executed by each of the parties.
15. Term. This Agreement shall remain in full force and effect for three (3) years from the date
hereof.
IN WITNESS WHEREOF, the parties hereto through their duly authorized officers or
agents have caused this Agreement to be duly executed and delivered as of the date set forth
below.
VYB ZILL: Ci o nna• f
By:
By
Print Name: Barry D. Nalls Print ' ame:1 ip Sanders
Title: Member Title: City 1�r1 ager
Date: Date: f