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HomeMy WebLinkAboutC2012-068 - 3/20/2012 - ApprovedAMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS AND REDFLEX TRAFFIC SYSTEMS, INC. FOR PHOTO RED LIGHT ENFORCEMENT PROGRAM This Amendment ( "Amendment ") is made as of the date of the last signature contained herein to the Agreement for Photo Red Light Enforcement Program (the "Agreement ") made on or about January 30, 2007 between Redflex Traffic Systems, Inc. ( "Redflex "), a Delaware Corporation with offices located at 23751 N. 23 Avenue, Suite 150, Phoenix Arizona 85085 and The City of Corpus Christi (the "Customer" and/or the "City "), Texas, a municipal corporation with offices at 1201 Leopard Street, Corpus Christi, Texas 78101, individually the "Party" and collectively referred to as the "Parties ". RECITALS WHEREAS, Redflex has exclusive knowledge, possession and ownership of certain equipment, licenses, applications, and citation processes related to digital photo red light enforcement systems; and WHEREAS, the Customer desires to continue to engage the services of Redflex to provide certain equipment, processes and back office services so that Authorized Employees of the Customer are able to monitor, identify and enforce photo red light violations; and WHEREAS, it is a mutual objective of both Redflex and the Customer to reduce the incidence of vehicle collisions on municipal streets that will be monitored pursuant to the terms and conditions of this Agreement. NOW THEREFORE, in consideration of the mutual covenants contained herein, and for other valuable consideration received, the receipt and sufficiency of which are hereby acknowledged, the Parties amend the Agreement as follows: AMENDED TERMS AND CONDITIONS 1. Extension of Initial Term The term of the Agreement shall be extended for an additional five (5) years ( " Extended Term ") commencing on April 26, 2012. Thereafter, the Agreement shall automatically renew for up to two (2) additional five (5) year terms unless the Customer provides Redflex written notice of non- renewal at least thirty (30) days prior to expiration of the then current term. 2012 -068 M2012 -055 3120/12 Redflex Traffic Systems, Inc. INDEXED 2. Termination for Cause Provision 6.1. of the Agreement, entitled, " TERNUNATION FOR CAUSE is hereby deleted in its entirety and replaced with the following language: "6.1. TERMINATION FOR CAUSE Either parry shall have the right to terminate, by written notice to the other party, this Agreement as follows: 1) after 120 days in the event of a termination for cause under provision 6.1(i) or 6.1(iv); or 2) immediately in the case of termination for cause under 6.1(ii), 6.1(iii), or 3) after the expiration of the 45 calendar day cure period in the case of termination under provision 6.1(v), if any of the following termination for cause events occur: (i) Texas or Federal laws are enacted or amended to prohibit or substantially change (the "Change ") the operation of photo red light enforcement systems and the Change that affects the operation of the photo red light enforcement systems cannot be successfully resolved, cured or mitigated within 120 days after the enactment or amendment; (ii) any Court having jurisdiction over any Texas municipality or other Texas local government, rules, or Texas or Federal law declares, that results from photo red light enforcement are inadmissible in evidence; (iii) any court having jurisdiction over any Texas municipality or over any other Texas local government rules that use of photo red light enforcement systems violates State or Federal law; (iv) the City of Corpus Christi is enjoined by a Court of law from enforcement of the City ordinance regarding photographic traffic signal enforcement system or enjoined from enforcement of this contract and the injunction cannot be successfully lifted, resolved, cured or mitigated within 120 days after the injunction was entered by the Court; or (v) the other party commits any material breach of any of the provisions of this Agreement. In the event of termination due to Section 6.1(ii), or 6.1(iii), Customer shall be immediately relieved of any remaining obligations for payments to Redflex. In the event of termination due to Section 6.1(i), or 6.1(iv) above, Customer's payment obligations to Redflex shall be waived only from date of the enactment of the Change as defined in Section 6.1 (i) or date of the injunction by a Court as described in Section 6.1 (iv), until such time as the cause for the termination is successfully resolved, cured, or mitigated to the extent reasonably and legally permissible under the circumstances. In the event of termination after the expiration of the periods expressly described in section 6.16) or b. l (iv), then Customer shall be immediately relieved of any remaining obligations for payment to Redflex. In the case of termination under Section 6.1 (v) above, either parry shall have the right to remedy the cause for termination within forty -five calendar days (or 2 within such other time period as the Customer and Redflex shall mutually agree, which agreement shall not be unreasonably withheld or delayed), after written notice from the non- causing party setting forth in reasonable detail the events of the cause for termination. If a breach by Redflex remains uncured after forty -five calendar days, then the City may terminate the Agreement immediately by written notice to Redflex and the City shall be relieved of any further obligations for payment to Redflex. 3. Termination for Convenience Provision 6.3 of the Agreement, entitled "TERMINATION FOR CONVENIENCE" is hereby deleted in its entirety and replaced with the following language: "6.3 TERMINATION FOR CONVENIENCE. The Customer may terminate this Agreement without cause at any time by giving thirty (30) days written notice of termination to Redflex. In the event the Customer terminates this Agreement without cause the Customer shall pay to Redflex an amount equal to the unamortized cost, as hereinafter defined, of the direct labor costs and direct material costs (but not including equipment cost and salvageable material costs) solely associated with the installation of Intersection Approaches which have been installed prior to termination based on the following: 1. A seven (7) year, month by month amortization schedule for all Intersection Approaches (referred to as the " Intersection Approach 7 Year Amortization Schedule and attached to this Amendment as Exhibit "I"). This amortization schedule shall commence as of the "Go Live" date of each Intersection Approach. Redflex shall provide an itemization, with supporting invoices and labor expense documentation, to the Customer of the amount of direct labor costs and direct material costs (but not including equipment costs and salvageable material costs) solely associated with the installation of an Intersection Approach within thirty days of the completion of each intersection approach, said amount is expected to be in the range of $20,000 to $40,000 per Intersection Approach, but in no event shall said amount exceed $40,000 per Intersection Approach. Notwithstanding the foregoing, for each Intersection Approach for which there are between twelve (12) to twenty -four (24) complete months between the execution date of this amendment and the date of termination without cause, the unamortized cost amount to be paid by the Customer to Redflex pursuant to this section shall not exceed the amount which the Customer received from paid Notices of Violation attributable to the Intersection Approach through the date of termination. 3 4. Modifications to Exhibit "B " " Construction and Installation Obligations is follows: EXHIBIT "B" of the Agreement, entitled hereby amended by adding the language as "Redflex shall, at Redflex' sole expense, retro -fit the following six (6) Designated Intersection Approaches from the current video detection system with inductive loops or other preferred detection devices as mutually agreed upon by both Parties in writing, in accordance with schedule mutually agreed to by Redflex and Corpus Christi Police Department Captain with oversight of the Red light camera program. 1. CCR - EVHO -01 Everhart Rd and Holly Rd (NB) 2. CCR- EVHO -02 Everhart Rd and Holly Rd (SB) 3. CCR - GRGO -01 Greenwood Dr and Goliihar (SB) 4. CCR - HOWE -01 Holly Rd and Weber Rd (EB) 5. CCR- OCDO -01 Ocean Dr and Doddridge Rd (NB) 6. CCR - STWI -01 Staples St and Williams Dr (NB) Redflex shall relocate the following Designated Intersection Approaches listed below if and only if 1) the City Manager approves the addition of three (3) new approaches (the "Three Additional Approaches" or "Newly Added Approaches ") per each relocated Designated Intersection Approach; and 2) the "Three Additional Approaches" are successfully installed, implemented and become fully operational prior to the commencement of any relocation activities regarding any of the below Designated Intersection Approaches: 1. CCR - YOCI -01 Yorktown Blvd and Cimarron Blvd 2. CCR- MCA -01 McArdle Rd and Airline Rd (WB) — survey NB, EB and SB 3. CCR - AYBA -01 Ayers St and Baldwin Blvd (NB)" 5. Provisions Deleted from Exhibit "D ". The following provisions listed below from the section entitled, "BUSINESS ASSUMPTIONS FOR ALL PRICING OPTIONS:" of EXHIBIT "D ", "COMPENSATION & PRICING" are hereby deleted in their entirety: "4. A Designated Intersection Approach can be relocated to an alternative location at the request and expense of the Customer. Such costs will be supported by actual invoices from contractors providing the relocation services." and "5. NON PRODUCTIVE CAMERAS If the Customer and Redflex mutually agree that a camera does not provide public value or has not reached the desired safety goals, a new location will be mutually selected and the camera will be moved at NO COST to the Customer. If no further locations are mutually agreed upon the Customer will inform Redflex in 4 writing and the camera will be removed at NO COST to the Customer within thirty (30) calendar days after the receipt of the written notice. The billing for the camera will stop immediately upon receipt of the written notice." 6. Provisions Added to Exhibit "D ". EXHIBIT "D ", entitled "COMPENSATION & PRICING", is here by amended by adding the language as follows: "Additionally, Customer shall be obligated to pay to Redflex a fixed fee of $4,870 per month for each of the Newly Added Approaches. The Cost Neutrality provisions of Exhibit D apply to fixed fees for the Newly Added Approaches." 7. Modification to EXHIBIT "A ". Exhibit "A ", entitled "Designated Intersection Approaches" is hereby amended to include the below quoted language as follows: "This contract is for the ol2cration of at least thirteen (13) cameras. Selection of additional enforced intersection approaches will be determined by the City Manager upon meeting the appropriate benchmarks of violation volume, traffic volume, and crash data to be provided by the City Manager or his designee and Redflex." S. Road Re airs & Construction Projects. The operation of an installed camera shall be temporarily suspended as a result of any Customer - authorized road repairs, street improvements or stop work order that interrupts, impedes, obstructs or interferes with the successful performance of the installed camera for a period of fourteen (14) or more calendar days. 9. Commercially Reasonable Adjustments. On the third anniversary of the execution of this Amendment and each subsequent third anniversary thereafter, the Parties agree to examine in good faith the underlying financial requirements and compensation requirements of the Agreement and, if necessary, negotiate mutually acceptable and commercially reasonable adjustments ( "Adjustment(s) ") thereto. Any and all Adjustment(s) shall be enforceable only if in writing signed by authorized representatives of both Parties. 10. Enforceabili of Non - Amended Terms and Conditions. Except as expressly amended in writing in this Amendment, the terms and conditions of the Agreement and any and all amendments, attachments and exhibits attached thereto and incorporated herewith by reference shall be unchanged and shall remain enforceable and in full force and effect. 11. Relationship Between Redflex and the City. Nothing in this Amendment or the Agreement shall create, or be deemed to create, a partnership, joint venture and/or the relationship of principal and agent and/or employer and employee between the Parties. The relationship between the Parties shall be that of independent contractors, and nothing contained herein shall permit, authorize, sanction and/or allow, at any time, either Party to incur any debts and/or liabilities on behalf of the other Party. 5 12. Headings The captions, titles, paragraph headings used in this Amendment are for convenience only, and are not a part of this Amendment, and shall not be deemed relevant in construing and /or interpreting this Amendment. 13. Execution And Counterparts. This Amendment may be signed in counterparts, and each counterpart shall be deemed an original, but all of which shall constitute one and the same instrument. The Parties agree that such counterpart shall be effective and enforceable on or about the date of the last required signature. 14. Covenant of Further Assurances All Parties to this Amendment shall take, undertake, approve, sanction, and perform, in full, any and all acts and activities and execute and deliver any and all certificates, documents, permits, licenses, agreements, contracts, written instruments and other papers deemed necessary and appropriate for successful and complete compliance with each and every term and condition of this Amendment. 15. Authority to Execute The undersigned individuals hereby warrant and represent that they have full authority to execute this Amendment on behalf of the entities for which they have signed. 16. Legal Competence The Parties hereto expressly represent and warrant that they are legally competent to execute this Amendment and that they do so of their own free will and accord without reliance on any representations of any kind or character not expressly set forth herein. 17. No Duress The Parties expressly represent and warrant that this Amendment has been freely and voluntarily entered into and that the Parties did not execute this Amendment under duress of any kind, from any Party or person, regardless of whether they are a signatory hereto. 18. Joint Efforts This Amendment has been prepared by the joint efforts of the respective attorneys for the Parties and each Party acknowledges and agrees that the general rule of contract construction providing that the provisions of a contract are to be strictly construed against the drafter of the agreement is hereby waived. 19. No Waiver No waiver of any of the terms of this Amendment shall be binding unless in writing and signed by all Parties hereto. No waiver of any term of this Amendment shall be deemed a waiver of any subsequent breach or default of the same or similar nature. 20. Severability The invalidity or unenforceability of any paragraph or provision of this Amendment shall not affect the validity or enforceability of the remainder of this Amendment, or the remainder of any paragraph or provision. This Amendment shall be construed in all respects to the fullest extent permitted by law, and as if any invalid or unenforceable paragraph or provision was omitted. 21. Understanding The Parties to this Amendment represent that they have received independent advice of counsel concerning the meaning and legal effect of the terms of this Amendment. After such counseling, the Parties represent that they fully understand this Amendment and its terms, and, with this full understanding, voluntarily enter into this Amendment as evidenced by signing it below. The Parties have read and understand all terms and conditions of this Amendment. 22. Binding Effect This Amendment and Exhibit B and Exhibit D attached hereto shall inure to the benefit of and be binding upon the assigns and successors of the respective Parties. 7 IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as set forth below. THE CITY OF CORPUS CHRISTI: Date: Name: IP N A j L. 0(!� Title: b4 �, rn� r REDFLEX TRAFFIC SYSTEMS, INC.: Date: 0 Signature • - C.�- ! 1 Name: /'� Title: _ LEQ Apprnwd u to form: Lisa Aguilar Assistant Ci ttorney For City Attorney TMSTr ARVPRlNDO CHAPA J CITY SECRE An- 012 j D 6-5. AU HUK " Sy M-UNCIL 8 EXHIBIT "1" "Intersection Approach 7 Year Amortization Schedule Number Number "Go Live" of Months Sum of Cap $20K "Go Live" of Months Sum of Cap $20K Date months Remaining Depreciation - $40K Date months Remaining Depreciation - $40K used used xxlxx/20xx 0 84 $476.19 $40,000.00 xx/xx/20xx 43 41 $476.19 $19,523.83 xx/xx/20xx 1 83 $476.19 $39,523.81 xx/xx/20xx 44 40 $476.19 $19,047.64 xx/xx/20xx 1 2 82 $476.19 $39,047.62 xx/xx/20xx 45 39 $476.19 $18,571.45 xx/xx/20xx 3 81 $476.19 $38,571.43 xx/xx/20xx 46 38 $476.19 $18,095.26 xx/xx/20xx 4 80 $476.19 $38,095.24 xxlxx/20xx 47 37 $476.19 $17,619.07 xx/xx/20xx 5 79 $476.19 $37,619.05 xx/xx/20xx 48 36 $476.19 $17,142.88 xx/xx/20xx 6 78 $476.19 $37,142.86 xx/xx/20xx 49 35 $476.19 $16,666.69 xx/xxl20xx 7 77 $476.19 $36,666.67 xx/xx/20xx 50 34 $476.19 $16,190.50 xx/xx/20xx 8 76 $476.19 $36,190.48 xx/xx/20xx 51 33 $476.19 $15,714.31 xx/xx/20xx 9 75 $476.19 $35,714.29 xx/xx/20xx 52 32 $476.19 $15,238.12 xx/xx/20xx 10 74 $476.19 $35,238.10 xx/xx/20xx 53 31 $476.19 $14,761.93 xx/xx/20xx 11 73 $476.19 $34,761.91 xx/xx/20xx 54 30 $476.19 $14,285.74 xx/xx/20xx 12 72 $476.19 $34,285.72 xx/xx/20xx 55 29 $476.19 $13,809.55 xx/xx/20xx 1 13 71 $476.19 $33,809.53 xx/xx/20xx 56 28 $476.19 $13,333.36 xx/xx/20xx 14 70 $476.19 $33,333.34 xxlxx/20xx 57 27 $476.19 $12,857.17 xx/xx/20xx 15 69 $476.19 $32,857.15 xx/xx/20xx 58 26 $476.19 $12,380.98 xx/xx/20xx 16 68 $476.19 $32,380.96 xx/xx/20xx 59 25 $476.19 $11,904.79 xx/xx/20xx 17 67 $476.19 $31,904.77 xx/xx/20xx 60 24 $476.19 $11,428.60 xx/xx/20xx 18 66 $476.19 $31,428.58 xx/xx/20xx 61 23 $476.19 $10,952.41 xxlxx/20xx 19 65 $476.19 $30,952.39 xx/xx/20xx 62 22 $476.19 $10,476.22 xx/xx/20xx 20 64 $476.19 $30,476.20 xxlxx/20xx 63 21 $476.19 $10,000.03 xx/xx/20xx 21 63 $476.19 $30,000.01 xx/xx/20xx 64 20 $476.19 $9,523.84 xx/xx/20xx 22 62 $476.19 $29,523.82 xx/xx/20xx 65 19 $476.19 $9,047.65 xx/xx/20xx 23 61 $476.19 $29,047.63 xx/xx/20xx 66 18 $476.19 $8,571.46 xx/xx/20xx 24 60 $476.19 $28,571.44 xx/xx/20xx 67 17 $476.19 $8,095.27 xx/xx/20xx 25 59 $476.19 $28,095.25 xx/xx/20xx 68 16 $476.19 $7,619,08 xx/xx/20xx 26 58 $476.19 $27,619.06 xx/xx/20xx 69 15 $476.19 $7,142.89 xx/xx/20xx 27 57 $476.19 $27,142.87 xx/xx/20xx 70 14 $476.19 $6,666.70 xx/xx/20xx 28 56 $476.19 $26,666.68 xx/xx/20xx 71 13 $476.19 $6,190.51 xx/xx/20xx 29 55 $476.19 $26,190.49 xx/xx/20xx 72 12 $476.19 $5,714.32 xx/xx/20xx 30 54 $476.19 $25,714.30 xx/xx/20xx 73 11 $476.19 $5,238.13 xx/xx/20xx 31 53 $476.I9 $25,238.11 xx/xx/20xx 74 10 $476.19 $4,761.94 xx/xx/20xx 32 52 $476.19 $24,761.92 xx/xx/20xx 75 9 $476.19 $4,285.75 xx/xx/20xx 33 51 $476.19 $24,285.73 xx/xx/20xx 76 8 $476.19 $3,809.56 xx/xx/20xx 34 50 $476.19 $23,809.54 xx/xx/20xx 77 7 $476.19 $3,333.37 xx/xx/20xx 35 49 $476.19 $23,333.35 xx/xx/20xx 78 6 $476.19 $2,857.18 xx/xx/20xx 36 48 $476.19 $22,857.16 xx/xx/20xx 79 5 $476.19 $2,380.99 xx/xx/20xx 37 47 $476.19 $22,380.97 xx/xx/20xx 80 4 $476.19 $1,904.80 xx/xx/20xx 38 46 $476.19 $21,904.78 xx/xx/20xx 81 3 $476.19 $1,428.61 xx/xx/20xx 39 45 $476.19 $21,428.59 xx/xx/20xx 82 2 $476.19 $952.42 xx/xx/20xx 40 44 $476.19 $20,952.40 xx/xx/20xx 83 1 $476.19 $476.23 xx/xx/20xx 41 43 $476.19 $20,476.21 xx/xx/20xx 84 0 $476.19 $0.04 xx/xx/20xx 42 42 $476.19 $20,000.02 End of Document [to]