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2007-12-27 Special MeetingKodiak Island Borough Assembly Special Meeting Agenda December 27, 2007 Work Session of the Assembly Starts at 7:30 p.m. Borough Conference Room The Assembly will take a recess during work session and convene the special meeting. 1. ROLL CALL 2. CITIZENS COMMENTS (Limited to Three Minutes per Speaker) 3. CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING A. Appointment to the Kodiak Island Borough Assembly. B. Newly- appointed Assembly Member's Oath of Office. C. Contract No. FY2008 -22 Mass Appraisal Database and Data Conversion Services Contract. 4. ADJOURNMENT This meeting was called by the Assembly. Page 1 of 1 Kodiak Island Borough Assembly Special Meeting Guidelines December 27, 2007, 7:30 p.m., Borough Conference Room 1. ROLL CALL 2. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) A. Agenda items not scheduled for public hearing and general comments. ASK SPEAKERS TO SIGN IN AND STATE THEIR NAME FOR THE RECORD. 3. CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING A. Appointment o the Kodiak Island Borough Assembly Nominations will be opened. Nominations may be made by any member of the Assembly. At the close of the nominations, a ballot shall be taken. The Clerk shall distribute, collect, and with the assistance of one other person, tally the ballots. The Clerk shall announce the results. A majority vote of the Assembly shall be required for the appointment. If no majority is cast for any candidate, the candidate with the fewest ballots shall be dropped from the list of candidates until there are two remaining and balloting shall continue until one candidate is elected. B. Newly- appointed Assembly Member's Oath of Office. The Clerk will administer the oath of office to the newly- appointed Assembly member. The newly appointed Assembly member will take his /her place with the Assembly. C. Contract No. FY2008 -22 Mass Appraisal Database and Data Conversion Services. Recommended motion: Move to authorize the manager to execute Contract No. FY2008 -22 with True Automation of Plano, Texas in the amount not to exceed $342,628. Staff Report — Manager Gifford Assembly discussion. ROLL CALL VOTE ON MOTION. 4. ADJOURNMENT Recommended motion: Move to adjourn the meeting. ROLL CALL VOTE ON MOTION Kodiak Island Borough Assembly Guidelines December 27, 2007 Page 1 0 Z O } W m ( ON SaA Mr. Abell Ms. Branson Mr. Friend Ms. Lynch Mr. Oswalt Ms. Stutes TOTAL J In case of a tie Mayor Selby G z O W m N ON saA Mr. Abell Ms. Branson Mr. Friend Ms. Lynch �IennsO 'aW salnn •sW Z HANGE THEIR VOTE? TOTAL In case of a tie Mayor Selby 0 c> Z O W co Vf ON saA Mr. Abell Ms. Branson puap3 •aw Ms. Lynch ( Mr. Oswalt Ms. Stutes NYONE WISH TO C TOTAL In case of a tie_ Mayor Selby k__\__ '-- ai Z ON LJ saA Ir. Abell y" I Is. Branson 1 ✓ mill Ir. Friend V I BI Is. Lynch 0 2' ( lieMSo •aI s. Stutes ( V ( 0 IV S300 )TAL case of a tie ayor Selby O M. U m H IN 1 G z O W OD V1 ON [ a A El Ell ( Mr. Abell Ms. Branson Mr. Friend Ms. Lynch Mr. Oswalt Ms. Stutes TOTAL In case of a tie Mayor Selby KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Cl/assembly/roll call sheet 2.16.060 Declaring and filling vacancies. A. The assembly shall declare an assembly member's seat vacant when the assembly member: 1. resigns and the assembly accepts the resignation; 2. is convicted of a felony or an offense involving a violation of the oath of office; 3. no longer physically resides in the borough; or 4. misses more than four (4) unexcused consecutive regularly scheduled assembly meetings, or misses one -half (2) of all regular assembly meetings of the assembly in a six (6) month period. B. If less than ninety (90) days remain in a term, the vacant seat shall not be filled. If a seat is declared vacant and more than ninety (90) days remain in the term, then the clerk shall publish reasonable public notice of the vacancy and, for fourteen (14) days after the first publication thereof, receive applications from persons interested in being appointed to the vacant seat. The assembly shall review the applications and may interview applicants. Not later than thirty (30) days after the seat is declared vacant, the assembly shall appoint from among the applicants a qualified person to fill the vacant seat. C. In appointing a person from among the applicants, the assembly shall utilize the voting procedures specified in subsection 2.17.040(A) of this title for the election of the deputy presiding officer. D. Notwithstanding B of this section, if the membership of the assembly is reduced to fewer than four (4) assembly members, then the remaining assembly members shall appoint as many qualified persons to the assembly as is necessary to once again constitute a quorum. The assembly shall utilize any procedure which is reasonable under the circumstances in making the appointments required by this subsection and shall make said appointments not later than seven (7) days after the quorum was reduced to less than four (4) assembly members. E. Persons appointed to fill a vacancy shall serve until the next regular election, at which time a successor shall be elected to fulfill the remainder of the unexpired term of office. (Ord. FY2005 -07 §4 (part), 2004; Ord. 98 -02 §4 (part), 1998; Ord. 90 -18 §2, 1990; Ord. 79 -11 -0 (part), 1979; Ord. 74 -6 -0 §5, 1974; prior code Ch. 2 subch. 2 §5). 2.17.040 Organization and deputy presiding officer. A. Organization: The assembly shall annually, at the November meeting, elect from its members a deputy presiding officer to serve at the assembly's pleasure. B. Election of the deputy presiding officer of the assembly shall be in the following manner: 1. as the first order of new business, nominations for deputy presiding officer shall be opened. 2. nominations may be made by any member of the assembly. 3. at the close of nominations, a ballot shall be taken. The clerk shall distribute, collect, and with the assistance of one (1) other person, tally the ballots. The clerk shall announce the results. 4. a majority vote of the assembly shall be required for election. 5. if no majority is cast for any candidate, the candidate with the fewest ballots shall be dropped from the list of candidates until there are two (2) remaining and balloting shall continue until one (1) candidate is elected. C. Deputy presiding officer: The deputy presiding officer shall preside as the chair at assembly meetings in the absence of the mayor. If at any meeting the deputy presiding officer is not present, or is unable to act, the senior assembly member present shall preside as the chair. (Ord. FY2005 -07 §5 (part), 2004; Ord. 98 -02 §4 (part), 1998; Ord. 86- 13 -0(A) §3(part), 1986). C - ro „z, - V ( (1 ILL COMMUNITY ACTIVITIES: 3. d Signature Kodiak Island Borough Office of the Borough Clerk 710 Mill BayRoa; Phone (907) 486-9310 Fax O 486-9391 Kodiak, Alaska 9910 r 1, ASSEMBLY APPLICATION 4. Date Br Rni_ufl NAME: r7t HOME PHONE: - - i i 1, WORK: 5A h-kt CELL NO: VC)7-51 U 41c2.3 E -MAIL: j G�, CLA . 1F� ir ?, e.�. i t , Can - STREET ADDRESS: J l CI, f f--... f - r N MAILING ADDRESS: 60)(._ 556 �J LENGTH OF RESIDENCE IN KODIAK: 35•Jr 5; IN ALASKA: - 551 , ARE YOU A REGISTERED VOTER IN KODIAK? t YES (,../)/ NO ( ) ARE YOU A PROPERTY OWNER IN KODIAK? YES ( NO 9 7 PROFESSIONAL ACTIVITIES: I / ' rce <<IA,.c L. L (- t(( CC Mom rat .e AREA OF EXPERTISE AND/OR EDUCATION: / L / �� IJ t'+' I AM INTERESTED IN SERVING ON THE FOLLOWING BOARD(S) (List in order of preference) 1. 6, r 6 c,t_� G_ �-�� �� 2. A resume or letter of interest may be attached, but is not required. This application will be kept on file for one year. Please return the application by the advertised deadline. r n r Voter ID No Verified B Applicant's Residence; Date Appointed: Term Expires on: Comments: - STAFF USE ONLY - Documentation: Appointment Letter Roster: Oath of Office: Financial Disclosure: ASSEMBLY APPLICATION NAME: ZoR, z— Le e A RA/ d D - U". /ls Tc-d HOME PHONE: V8‘ - 6 4''6 WORK: -- CELL NO: E -MAIL: Jo i-na, sc t-nd cr a LG , n e '" STREET ADDRESS: .3/ 3, A 2 c t, c 7 rrr MAILING ADDRESS: ier,Sofc a e 9 /r cd / /1K 9 F6 LENGTH OF RESIDENCE IN KODIAK: y rS ARE YOU A REGISTERED VOTER IN KODIAK? ARE YOU A PROPERTY OWNER IN KODIAK? COMMUNITY ACTIVITIES: i a A P hei r, ; D r (en' "e V /w 7`e r � CX /ge,cc, /ere' PROFESSIONAL ACTIVITIES: /`1o77'rz Aa,o�C /Inv, e //a Ai a AREA OF EXPERTISE AND /OR EDUCATION: n h u�✓ 9 GP_��; I AM INTERESTED IN SERVING ON THE FOLLOWING BOARD(S) (List in order of preference) 1. 3. Kodiak Island Borough Office of the Borough Clerk 710 Mill Bay Roa te Kodiak, Alaska 996 , I; 1 Phone (907) 486 -9310 Fax ( 46-9391 EMAIL: n'avier kodia,_ , us DEC 1 9 IN ALASKA: YES M YES (X �a -/7-D7 Date NO ( ) NO ( ) ,€ e re A resume or letter of interest may be attached, but is not required. This application will be kept on file for one year. Please return the application by the advertised deadline. 4. r Voter ID No Verified By: Applicant's Residence; Bore+e (4) City ( ) Date Appointed: Term Expires on: Comments: - STAFF USE ONLY - Documentation: Appointment Letter: Roster: Oath of Office: Financial Disclosure: sf U)1 L>t I S AND 1'C83 .I;I ti OFFICE f (-WWII TO: �. _ MAYOR t OTHK �1e1NA � „_;+''� E � TO: FROM: RE: DATE: Mayor and Borough Assembly Melvin M. Stephens, II ) .27 Ordinance 2008 -11 December 27, 2007 MELVIN M. STEPHENS, II A PROFESSIONAL CORPORATION ATTORNEY AT LAW 104 CENTER AVENUE, SUITE 206 P.O. BOX 1129 KODIAK, ALASKA 99615 TELEPHONE (9071 486 -3143 MEMORANDUM I ask that the following be read into the record during the audience comment portion of the Special Meeting of the Borough Assembly scheduled for this evening, December 27, 2007 and otherwise made a part of the official record of that meeting. On December 6 Ordinance 2008 -11 came before you for a public hearing, following which a motion to pass it was defeated by a vote of 2 ayes and 3 noes. I was present at that meeting and observed Pat Branson and Chris Lynch to cast the aye votes. I also observed that neither of them sought to change their votes before the clerk announced the result of that vote. The Assembly then took a break and I left the meeting at that time. On December 20 the assembly purposed to reconsider the December 6 vote on Ordinance 2008 -11, following which that ordinance was amended and passed. The motion to reconsider was made by Pat Branson and was based upon an affidavit signed by Ms. Branson claiming that she was on the prevailing side of the December 6 vote. In this connection I am told that, upon returning from the break taken at the December 6 assembly meeting, Ms. Branson announced that she wished to change her vote on Ordinance 2008 -11 from "aye” to "no." This violated Section 2.17.070.F.3 of the Borough Code, which reads, in relevant part: no member shall be allowed to explain his vote or discuss the question while the "ayes" and "noes" are being called but may change his vote between the time of calling for the vote by the clerk and the announcement of the result by the chair or the clerk. Because Ms. Branson's attempt to change her vote on Ordinance 2008 -11 violated an explicit provision of the Borough Code, she could not legitimately be considered to have voted on the prevailing side when the motion to pass this ordinance was defeated on December 6. Accordingly, she was not eligible to bring a motion to reconsider that motion. Section 2.17.070.N of the Borough Code governs this issue and reads, in relevant part: -2- October 4, 2007 An assemblymember may make a motion to reconsider only if: 1. the assemblymember voted with the prevailing side on the question to be reconsidered. Since the assembly's actions on December 20 in purportedly passing a motion to reconsider the defeat of Ordinance 2008 -11 violated the above- quoted provisions of the Borough Code, it's subsequent action in purporting thereafter to pass Ordinance 2008 -11 in an amended form was likewise improper. Please take action at your next regular meeting to correct the situation created by the unauthorized actions taken with respect to Ordinance 2008 -11 at the regular assembly meetings of December 6 and 20. TITLE: Contract No. FY2008 -22 Mass Appraisal Database and Data Conversion Services Contract. SUMMARY: The Kodiak Island Borough assessing department currently maintains property records in an electronic database called Kb Systems. This system is obsolete, unable to calculate property values, and has no technical support from the manufacturer. Property records can only be updated by posting override values one property at a time, and should the system fail the assessing department would be unable to carry out its essential functions. KIB issued an RFP on June 15th of this year soliciting proposals for a replacement system. Six proposals were received and each was reviewed by the assessor for compliance with the response requirements set forth in the RFP. Each company was evaluated for financial stability by reviewing financial statements in the proposals along with D&B reports. Each proposal was then reviewed and given a score by each member of our evaluation team, consisting of staff from all borough departments. Ratings were given for Software Track Record, Extent to Which Software Meets System Requirements, Vendor Management and Support Capacity, and Cost. The two lowest -rated proposals were eliminated. The four remaining companies were invited to KIB offices to demonstrate their products and staff interviewed everyone on each company's reference list. Assessing and MIS staff identified two companies as finalists and conducted onsite visits to existing system users in Washington state and Texas. This concluded the evaluation process and staff felt confident in selecting True Automation of Plano, Texas for the contract. True Automation proposes to provide and install a new database called PACS, and to convert all existing records from the legacy system. True Automation further proposes to complete the GIS base map layer to include all properties within KIB boundaries, and to synchronize this map with property records in the assessing department database, thus enabling access to all borough departments through a local area network and access to the public through a web interface. The PACS database will increase the efficiency and accuracy of the assessing department by enabling table- driven land values, mass property updates including annually updated cost and depreciation estimates, comparable sales and income models, complete description of all vessels, aircraft and taxable business assets, and comprehensive tracking and processing of property exemption programs. True Automation proposes to provide and install a new tax billing and collections software program which is fully compatible with the PACS database and will enable the finance department to calculate tax bills based upon the certified assessed values, track payments and delinquencies, and calculate penalties and interest in real time. Staff recommends approval of the contract. FISCAL NOTES: Account No.: Fund 410 Amount Budgeted: $400,000 Expenditure Required: $342,628 APPROVAL FOR AGENDA: KODIAK ISLAND BOROUGH AGENDA STATEMENT DECEMBER 27, 2007 SPECIAL MEETING ITEM NO. 3_C RECOMMENDED MOTION: Move to authorize the manager to execute Contract No. FY2008 -22 with True Automation of Plano, Texas in the amount not to exceed $342,628. TRUE AUTOMATION MASTER LICENSE AND SERVICES AGREEMENT This Master License and Services Agreement (this "Agreement ") is made and entered into effective this ( "Effective Date ") by and between True Automation, Inc., a Texas corporation ( "TRUE AUTOMATION ") FID # 75- 2737469 and Kodiak Island Borough, Alaska ( "Licensee "). 1. PURCHASE ORDERS. 1.1. Licensee may issue to TRUE AUTOMATION written purchase orders identifying the Licensed Software (as defined below) and services Licensee desires to obtain from TRUE AUTOMATION. Such purchase orders shall be consistent with the terms and conditions of this Agreement. It is the parties' intent that the initial version of each purchase order shall be generated by TRUE AUTOMATION. TRUE AUTOMATION shall accept any mutually agreeable purchase orders or alterations thereto which do not establish new or conflicting terms and conditions from those set forth in this Agreement and the exhibit(s) attached hereto or entered into pursuant to the terms of this Agreement. In the event of a conflict between the terms of this Agreement and a purchase order, the applicable terms of this Agreement shall prevail over the conflicting terms of such purchase order. TRUE AUTOMATION may reject a purchase order that does not meet the conditions described above by promptly providing to Licensee a written explanation of the reasons for such rejection. In order to be valid, all purchase orders submitted by Licensee must be substantially in the form of Purchase Order 1 attached hereto and shall be executed by authorized representatives of each party prior to taking effect. Purchase orders or alterations thereto accepted in accordance with this Section are referred to herein as "Purchase Orders." Each executed Purchase Order shall be attached hereto and incorporated herein as Purchase Order 1, 2, et seq. 2. LICENSE. 2.1. Grant of License. Subject to the terms of this Agreement and any applicable Purchase Order, TRUE AUTOMATION hereby grants to Licensee a non - exclusive, non- transferable, non - sublicenseable, restricted license to use for internal purposes (the "License ") during the license term specified in such Purchase Orders (the "License Period "), the object code for the TRUE AUTOMATION Property Appraisal and Collections System ( "PACS ") software (the "Licensed Software "). The Licensed Software may be used only by Licensee during the applicable License Period. The License permits named users designated by Licensee in Purchase Orders ( "Authorized Users ") to use the Licensed Software. 2.2. Prohibited Uses. Licensee may not (i) transfer all or any portion of the Licensed Software to a different computer configuration or permit use by third parties or other functionally independent business units affiliated with Licensee or Affiliates of Licensee, (ii) reinstall or use the Licensed Software or documentation following the expiration or termination of this Agreement unless it enters into an additional license agreement with TRUE AUTOMATION, (iii) attempt to circumvent any technical devices of the License Software that are directed at, or have the effect of, enforcing the terms of this Agreement, (iv) make copies of the Licensed Software, or (v) modify, create derivative works, translate, decompile or create or attempt to create, by reverse engineering or otherwise, the source code from the object code supplied to Licensee. Licensee may not remove, modify or obscure any copyright, trade secret, confidentiality, trademark, service mark or other proprietary rights, notice or legend on any copy of the Licensed Software, the media on which it is contained, or related data, documentation or other materials. An "Affiliate" shall mean any person or entity that controls, is controlled by, or is under common control with another (with "control" meaning ownership of 50% or more of the voting control of any person or entity). TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 1 of 16 2.3 Designated Hardware. The Licensed Software may be used only on the Designated Hardware referenced in any Purchase Order or attachment thereto, at the location(s) specified in such Purchase. Order 3. Services. 3.1. Professional Services. TRUE AUTOMATION shall provide professional services ( "Services ") as described in Purchase Orders to assist with data conversion, system implementation and configuration, customization, and installation, or in connection with other activities as may be described in Purchase Orders. Subject to the mutual agreement of the parties in a Purchase Order, TRUE AUTOMATION personnel will perform these Services at the rate and charges set forth in such Purchase Order, plus applicable travel, meal and lodging expenses. 3.2. Maintenance and Support Services. True Automation shall provide maintenance and support services ( "Maintenance ") as described in Purchase Orders to (i) maintain the Licensed Software in conformance with its documentation, , (ii) provide to Licensee all bug fixes, updates, upgrades and patches for the Licensed Software that are generally released to TRUE AUTOMATION's Maintenance customers, and (iii) to provide technical phone support and other services as described in Purchase Orders. The fees for Maintenance shown in Purchase Orders include one year of Maintenance, and shall be invoiced to Licensee upon completion of the final implementation of the Licensed Software. Thereafter, unless terminated by Licensee upon sixty (60) days written notice, the fees for Maintenance shall be invoiced at the same rate as the previous Maintenance term, subject to annual increases not to exceed 10 %. In the event Licensee fails to renew Maintenance for two consecutive years, the License will terminate in accordance with Section 7 herein. If Licensee ceases paying for Maintenance as described herein, TRUE AUTOMATION shall continue to provide support for the Licensed Software for up to (1) one year (the "Grace Period "), but will not provide to Licensee any updates or enhancements to the Licensed Software during such Grace Period. In the event Licensee does not pay for all outstanding and accrued fees for Maintenance after the Grace Period, the License and Maintenance will terminate, and TRUE AUTOMATION will have no further obligation to provide such Maintenance services. Licensee understands and agrees that if Licensee discontinues and then resumes the use of Maintenance, Licensee will be required to pay TRUE AUTOMATION the entire Maintenance fees for the period of discontinuance, plus the Maintenance fees then commencing. Unless otherwise set forth in an applicable Purchase Order, support calls for Maintenance will be provided during normal business hours, and will be responded to in a maximum of 2 hours from the time the call was placed. 3.3. Insurance. During the term of this Agreement, TRUE AUTOMATION shall, at its sole cost and expense, secure and maintain workers' compensation insurance in amounts as required by the applicable statutes, employer's liability insurance in a minimum amount of $500,000; commercial general liability insurance in a minimum amount of $1,000,000; and professional liability (errors and omissions) insurance in an amount not less than $1,000,000. TRUE AUTOMATION shall furnish to Licensee certificates of insurance reflecting policies in force as requested by Licensee. 4. Fees and Expenses. 4.1. In consideration for the License and the Services and Maintenance to be provided by TRUE AUTOMATION, Licensee shall pay the fees to TRUE AUTOMATION within thirty (30) days of the date of the invoice, unless otherwise provided in the Purchase Order. Thereafter, all past due balances shall accrue interest at the rate of 1% per month. Licensee shall reimburse TRUE AUTOMATION for all pre- approved reasonable travel, meals, lodging and other out of pocket expenses incurred by TRUE AUTOMATION in connection with providing Services described in Purchase Orders. 5. Proprietary Rights and Confidentiality. 5.1. Licensee understands and agrees that the Licensed Software and related data, documentation, and other materials (the "Proprietary Information ") are confidential and that TRUE AUTOMATION has and will have exclusive intellectual property and other proprietary rights in such Proprietary Information including, but not limited to, patent, copyright, trademark, service mark, trade name rights in any jurisdiction in the world whether registered or at common law (including registrations for and applications to register the same) and trade secrets (collectively, the Proprietary Rights "). Licensee acknowledges and agrees that no title or ownership of the Licensed Software or any of the Proprietary Rights is transferred to Licensee by this Agreement and that the Licensed Software and all Proprietary Rights are and will remain the exclusive property of TRUE AUTOMATION. Except as otherwise expressly set forth in any Purchase Order, True Automation shall own all right, title, and interest in and to all Deliverables that are written or created by True Automation personnel alone or jointly with Licensee or third parties in connection with this Agreement. "Deliverable" shall mean any work product, software, co- development, analysis, or other deliverable(s) produced for or delivered to Licensee under this Agreement in connection with a Purchase Order. 5.2. Licensee agrees not to make any claim or representation of ownership of any of the Licensed Software and all related data, documentation and other materials, including any Deliverables. Subject only to the rights expressly granted to Licensee under this Agreement according to the non - exclusive License herein, all rights, title and interest in and to the Licensed Software including without limitation the Proprietary Rights will remain with and belong exclusively to TRUE AUTOMATION. This is a software license agreement and not an agreement for the sale of the Licensed Software. 5.3. Licensee agrees to keep all Licensed Software (including all related data, documentation and other materials) and other confidential information of TRUE AUTOMATION confidential and agrees not to sell, assign, distribute or disclose any Licensed Software or any portion of the Licensed Software to any other person or entity. Licensee agrees to advise its employees, agents and consultants of the confidential and proprietary nature of the Licensed Software (including all related data, documentation and other materials) and of the restrictions imposed by this Agreement, and agrees to confine access to Licensee's employees, agents and consultants solely on a need - to -know basis, subject to all restrictions imposed by this Agreement. 5.4. TRUE AUTOMATION agrees to keep confidential all of Licensee's confidential information, and agrees not to sell, assign, distribute or disclose any such confidential information to any other person or entity. TRUE AUTOMATION agrees to advise its employees, agents, and consultants of the confidential and proprietary nature of such confidential information and of the restrictions imposed by this Agreement, and agrees to confine access to TRUE AUTOMATION's employees, agents and consultants solely on a need -to -know basis, subject to all restrictions imposed by this Agreement. Upon termination of this Agreement, TRUE AUTOMATION will make commercially reasonable efforts to provide Licensee's data and confidential TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 2 of 16 information in the specific electronic formats as requested by Licensee. 5.5. The provisions of this Section 5 apply to the Licensed Software as originally delivered by TRUE AUTOMATION and as modified or otherwise enhanced and to any data, documentation, other materials and information regarding the Licensed Software that has been given to Licensee prior to the Effective Date, and apply to Licensee and to all employees, agents, consultants and Affiliates of Licensee. 5.6. Licensee agrees to assist TRUE AUTOMATION in stopping and preventing any possession or use of the Licensed Software (including all related data, documentation and other materials) by any person or entity not authorized by this Agreement to have such possession or use, and will cooperate with TRUE AUTOMATION in any litigation that TRUE AUTOMATION determines is reasonably necessary to protect the Proprietary Rights. 5.7. The parties agree that any breach of the provisions of this Section 5 will cause substantial damages, that the amount of such damages is difficult to determine with precision, and that any remedies at law for such a breach will entitle the owner of the confidential information or Proprietary Information as the case may be, in addition to any other remedies it may have, to temporary and permanent injunctive and other relief, without the necessity of posting bond or proving actual damages. 6. Warranty and Limitation of Liability TRUE AUTOMATION warrants that the Licensed Software will perform in accordance with its intended purpose for the operation and administration of ad valorem taxation functions under the Laws of the State of Alaska and will perform all such functions to the satisfaction of the Licensee. Licensee's sole remedy for a breach of the express warranties in this section shall be repair or replacement of the Licensed Software or reperformance of any applicable Services within a reasonable time, or termination of the contract in accordance with the provision of paragraph 7 below. TRUE AUTOMATION MAKES NO OTHER WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE LICENSED SOFTWARE OR ANY SERVICES TO BE PROVIDED UNDER THIS AGREEMENT OR ANY APPLICABLE PURCHASE ORDER, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, IN FACT OR IN LAW, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, NON - INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE. TRUE AUTOMATION DOES NOT WARRANT THAT THE PRODUCT WILL OPERATE WITHOUT INTERRUPTION OR BE ERROR FREE. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR ANY APPLICABLE PURCHASE ORDER, TRUE AUTOMATION HAS NO DUTY TO UPDATE, MAINTAIN OR PROVIDE ANY ENHANCEMENTS FOR THE LICENSED SOFTWARE. EXCEPT FOR DAMAGES ARISING FROM THE BREACH OF EITHER PARTY'S INTELLECTUAL PROPERTY OR PROPRIETARY RIGHTS OR THE CONFIDENTIAL OBLIGATIONS SET FORTH HEREIN, NEITHER PARTY SHALL BE LIABLE TO THE OTHER OR ANY THIRD PARTY FOR DAMAGES IN EXCESS OF ANY AMOUNTS ACTUALLY PAID TO TRUE AUTOMATION HEREUNDER, INCLUDING WITHOUT LIMITATION, SPECIAL, CONSEQUENTIAL, INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES, LOST PROFITS OR LOST SAVINGS, EVEN IF THE PARTY OR PARTIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 7. Term and Termination 7.1. The term of this Agreement shall begin on the Effective Date and continue for one (1) year unless earlier terminated in accordance with the terms hereof. This Agreement shall automatically renew for additional twelve (12) month terms unless Licensee provides TRUE AUTOMATION written notice of its intent not to renew ninety (90) days prior to the expiration of the then- current term. In the event that either party fails at any time to comply with any of its obligations under this Agreement and fails to cure such breach within thirty (30) calendar days after the giving of a written notice of termination that describes in reasonable detail the alleged breach, the other party may terminate this Agreement effective on the 31 "` day after the original written notice of termination for cause was given if cure is not made or if some interim arrangement has not been reached between the parties during the 30 -day cure period. If Licensee intentionally and materially breaches TRUE AUTOMATION'S Proprietary Rights in and to the Licensed Software, TRUE AUTOMATION may terminate this Agreement immediately upon written notice to Licensee. Upon termination, Licensee shall immediately destroy all copies of the Licensed Software, and certify to True Automation that it has retained no copies of the Licensed Software. Upon termination, regardless of the reason for termination, Licensee shall pay TRUE AUTOMATION all undisputed Fees or expenses then due or incurred up to the time of termination. The rights and responsibilities of the parties pursuant to paragraphs 2.2, 4, 5, the limitation of liability provisions of paragraph 6, and paragraph 8 shall survive the expiration or termination of this Agreement. 8. Miscellaneous 8.1. Licensee will pay all taxes and import and export duties that are applicable to this Agreement including, but not limited to, sales, use, excise and personal property taxes, but excluding taxes based solely on TRUE AUTOMATION's net income. All payments made under this Agreement must be made in U.S. Dollars. 8.2. Neither party will be liable for any failure to comply with or delay in performance of this Agreement where failure or delay is caused by or results from any events beyond its control, including but not limited to, fire, flood, earthquake, accident, civil disturbances, acts of any governmental entity, war, shortages, embargoes, strikes (other than those occurring in the workforce of the party claiming relief, or the workforces of its subcontractors), transportation delays, or acts of God. 8.3. This Agreement will inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns; provided however, that (i) Licensee may not assign or otherwise transfer this Agreement or any of its rights and /or obligations hereunder without the prior written consent of TRUE AUTOMATION, and (ii) TRUE AUTOMATION may only transfer or assign its rights and obligations under this Agreement to an Affiliate in connection with a merger or acquisition or in connection with a corporate reorganization, and such Affiliate agrees to be bound by the terms and conditions of this Agreement. 8.4. TRUE AUTOMATION will maintain copies of all Licensed Software source code in English, in an escrow account for the term of this Agreement. TRUE AUTOMATION agrees to name Licensee as a third party beneficiary in the escrow agreement ( "Escrow Agreement "). The information and materials to be kept in escrow will be specifically identified and listed in an attachment to the Escrow Agreement, will be maintained in a media safe environment for the benefit of Licensee, and will include the most current version used by the Licensee of the following: (a) the source code for the Licensed Software, and (b) all documentation, tools and utilities related thereto as well as all necessary and available technical information which will enable Licensee to maintain the Licensed Software. The Escrow Agreement will provide for, among other items, the release of the list of items covered by the Escrow Agreement upon the occurrence of and of the following events: the commission by TRUE AUTOMATION of any act of bankruptcy within the meaning of the Federal Bankruptcy Act or if bankruptcy, receivership, insolvency, reorganization, dissolution, liquidation, or other similar proceedings shall be instituted by or against TRUE AUTOMATION or all or any TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 3 of 16 substantial part of its property under any federal or state law and, if against TRUE AUTOMATION, such proceeding shall not be dismissed within sixty (60) days. TRUE AUTOMATION will update the escrow so that at all times there is on deposit the most current version of the Licensed Software used by Licensee and all related supporting materials. Upon release of the deposit material, Licensee agrees that (a) TRUE AUTOMATION retains ownership of the material, (b) the deposit material is licensed to Licensee subject to the restrictions of this Agreement, (c) Licensee may not remove or destroy any proprietary markings or legend placed upon or contained with the deposit material, (d) Licensee may not market, sell, lend, rent lease or otherwise externally distribute the deposit material, Licensee may not provide, publish, disclose or otherwise make available the deposit material to any third party not permitted by this Agreement to use the Licensed Software, (e) Licensee shall hold the deposit material of TRUE AUTOMATION in strict confidence and not make any disclosure except as necessary for its use thereof, and (f) except when actually being utilized for the sole purpose of continuing the benefits afforded to Licensee by the Agreement, keep the deposit material in a highly restricted, limited access area with access thereto limited to designated personnel of Licensee who have a need to use the deposit material for the purposes permitted hereunder for the duration of time as necessary to complete such permitted purpose. A copy of the Escrow Agreement shall be delivered to Licensee within thirty (30) days from the Effective Date. True Automation shall also provide to Licensee the name and mailing address for the company serving as the Escrow. The Escrow Agreement shall state that it may not be terminated by any party without at least thirty (30) days advance notice to Licensee 8.5. This Agreement constitutes the full and complete understanding and agreement of TRUE AUTOMATION and Licensee and supersedes all prior negotiations, understandings and agreements pertaining to the subject matter of this Agreement. This Agreement will be supplemented by one or more Purchase Orders, which will be deemed to be part of this Agreement when signed by each party. 8.6. No delay, omission or failure to exercise any right or remedy under this Agreement will be deemed to be a waiver of such right or remedy or acquiescence to the event giving rise to such right or remedy, but every such right and remedy may be exercised from time to time and so often as may be deemed expedient by the party exercising such right or remedy. 8.7. TRUE AUTOMATION and Licensee are independent contractors with respect to one another under this Agreement, and neither one is a partner, joint venturer, employee, agent or legal representative of the other for any purpose. 8.8. This Agreement will be governed by and construed in accordance with the laws of the United States and the State of Alaska without respect to conflict of laws principles. The parties hereby irrevocably consent to the exclusive jurisdiction of the State and Federal District Courts for Collin County in Plano, Texas for the commencement or maintenance of any action between the parties arising hereunder. The parties agree that the United Nations Convention on Contracts for the International Sale of Goods (1980) is specifically excluded from application to this Agreement. 8.9. In the event that any provision of this Agreement is held to be illegal, invalid or unenforceable, under present or future laws, then (i) such provision will be fully severable and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision were not a part hereof, (ii) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by such illegal, invalid or unenforceable provision or by its severance from this Agreement, and (iii) there will be added automatically as a part of this Agreement a provision similar in terms to such illegal, invalid or unenforceable provision as may be possible and still be legal, valid and enforceable. 8.10. This Agreement will become effective only upon execution of this Agreement by an authorized officer of TRUE AUTOMATION and Licensee. IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. TRUE AUTOMATION, INC. Kodiak Island Borough, Alaska Address: 2600 Technology Drive Ste. 900 Plano, Texas 75074 Address: 710 Mill Bay Road Kodiak, AK 99615 By: By: Name: Osvaldo Morales Name: Rick Gifford Title: President and CEO Title: Borough Manager Effective Date: Effective Date: TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 4 of 16 5. Customer Requirements. 6. Licensed Software Fees. 7. Hardware Fees 8. Professional Services and Fees. Purchase Order 1 PACS Software, Installation and Training This Purchase Order to the True Automation Master License and Services Agreement ( "Agreement ") is made and entered into on this effective date by and between True Automation, Inc., a Texas corporation ( "TRUE AUTOMATION ") and Kodiak Island Borough. AK ( "Licensee ") pursuant to the terms of the Agreement. Capitalized terms used but undefined in this Purchase Order shall have the meanings assigned to them in the Agreement. 1. Start Date. The Start Date for this License shall be upon installation of PACS Appraisal and Collection software no later than 7/1/2008. 2. Licensed Software. PACS Appraisal TM & PACS Collections TM 3. License Period. The License Period shall be one (1) year from the Start Date, and shall renew for successive 12 month periods if the Agreement has not been terminated as provided therein. 4. Termination: Licensee may, at any time during the maintenance term, exit the maintenance contract with sixty (60) days written notice to Licensor. All fees owed to Licensor must be fully paid before Licensee is released from this agreement. A. TRUE AUTOMATION will assure proper configuration of all hardware and related equipment and devices owned by the Licensee prior to the execution of this Purchase Order, and assure such hardware is compatible with the Licensed Software. B. In order that Licensee is assured proper access to the Licensed Software, TRUE AUTOMATION requires that Licensee maintain a certain computing and networking environment as set forth in the Hardware and LAN Requirements section that appears later in this document. C. TRUE AUTOMATION will assure proper configuration of all hardware and related equipment and devices which the Licensee may acquire subsequent to the execution of this Purchase Order which is not purchased from or through TRUE AUTOMATION or not recommended or specified by TRUE AUTOMATION pursuant to the terms of this Purchase Order, and assure such hardware is compatible with the Licensed Software. D. TRUE AUTOMATION will establish adequate operating methods for the Licensed Software. E. Licensee will implement procedures sufficient to satisfy its obligations for security under the Agreement, including appropriate control of its employees to prevent misuse, unauthorized copying, modification, or disclosure of the Licensed Software. F. Acquisition of Data for Conversion: At the initiation of the conversion process and installation of TRUE AUTOMATION'S software it may be necessary for TRUE AUTOMATION to review, inspect or request data in a software system managed or owned by a third party vendor. It is Licensee's responsibility to procure, receive authority and /or obtain such data as requested by TRUE AUTOMATION. Licensee agrees to indemnify TRUE AUTOMATION for any liability for damages to a third party vendor involving claims of use or misuse or access to confidential and /or privileged information by TRUE AUTOMATION but only to the extent that such damages resulted from the actions of Licensee. TRUE AUTOMATION will not be held responsible for any delays in Licensee's failure to procure the requested data or receive third party vendor authority for access by TRUE AUTOMATION. Licensee shall pay TRUE AUTOMATION a one -time license Fee as specified in EXHIBIT A and will follow the payment schedule as detailed later in this document. TRUE AUTOMATION shall provide hardware as specified in EXHIBIT A and Licensee will follow the payment schedule as detailed later in this document. TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 5 of 16 Purchase Order 1 PACS Software, Installation and Training A. TRUE AUTOMATION will provide the following Professional Services for data conversion, implementation, and training: Proiect Scoping: This consists of performing the following services: (a) develop a project scope document (b) develop a project implementation document the details the installation of the system with a preliminary installation date. ii. Data Conversion: This consists of performing the following services: (a) pre- conversion meeting between TA's analyst performing the conversion and the client's technical staff to discuss file layouts and other data related issues that may be of importance. (b) Data conversion will to be performed prior to the scheduled installation date. Data entry on previous vendor's system must stop during this data conversion phase. (c) Data validation by the client staff to allow client personnel to evaluate the converted data. Data placed in incorrect locations will be adjusted and re- converted. (d) If necessary, a final conversion will be performed a few days prior to installation date and data will be re- validated. a. Appraisal Data Conversion Dependencies: The appraisal conversion will include the current year's appraisal data and up to ten (10) years of historical data. Years contracted are defined in EXHIBIT A. The historical data conversion is only possible if prior year's record layouts or table schemas are sufficiently the same format as the current year and follows the same business rules. If the historical data format is not sufficiently similar to the current year's format, TRUE AUTOMATION may propose a separate purchase order for this historical data conversion. b. Collections Data Conversion Dependencies: The collections conversion will include delinquent only information. If payment history is desired, there are two (2) options: (a) If the payment history is desired for reference -only, read -only, or for printing -only, the data can be converted into a flat file and records can be viewed from within a property record. (b) If the payment history is desired as active data that can be manipulated such as voiding receipts paid in the previous system, etc, then the payment history data must be provided with sufficient detail for proper conversion, including the breakdown of penalty and interest for each portion of levy assessed. Additional fees may apply for option b above. Proiect Management: This consists of TA's management staff coordinating and organizing the installation and conversion efforts to ensure transition is a success. iv. Product Installation & Data Validation: This consists of product installation management, appraisal data validation, PACS appraisal product configuration, collections data validation, PACS collections product configuration. a. PACS Client Installation and Configuration: This consists of TA's technical personnel visiting the client's offices and installing and testing the appraisal and tax collection software application on client machines. Technical staff will at this time also install the PACS database, PACS middle -tier and client's data on the server including PC installation and configuration. b. PC Software Installation Dependencies: The initial installation of PACS software on customer's PC will require the use of IT personnel. TA technical staff will train local IT personnel for this purpose. The client or desktop and server hardware must meet minimum specifications as outlined in the "Hardware and LAN Requirements" attached hereto. v. Server Installation and Configuration: This consists of TA's technical personnel installing and configuring the server and all other computer hardware described in EXHIBIT A - attached hereto including, but not limited to the following (a) installing and configuring Windows Server (b) installing and configuring backup software (c) installing and configuring Dynamic Host Configuration Protocol (DHCP) services (d) installing and configuring Remote Access Services (RAS) (e) installing and configuring Internet Information Server (IIS) services (f) installing and configuring MS SQL Server (g) installing and configuring internet connectivity and related fire -wall software. (h) Installing and configuring print services, printer drivers, network printers and monitoring software (i) adding all users vi. Product Training: This consists of TA's Product Specialists to conduct onsite training in several areas including (a) Basic Windows training (b) Appraisal product training if applicable (c) Collections product training if applicable (d) System Administration training (e) Windows Server Administration and troubleshooting training. The number of training days and topics are shown in EXHIBIT A. B. Professional Services Fees — TRUE AUTOMATION will provide professional services outlined in EXHIBIT A at the rate indicated in the same exhibit. C. Acceptance of Conversion: The conversion shall be accepted by Licensee after TRUE AUTOMATION presents Licensee with sufficient summary totals and reports that validate that all data has been converted. Following acceptance and for a period not to exceed 90 days, TRUE AUTOMATION warrants that it will correct any conversion defects identified by the Licensee. Licensee must inform TRUE AUTOMATION in writing of these defects. TRUE AUTOMATION has 30 days to correct defect or to propose an alternative solution that is acceptable to Licensee. 9. Hardware and LAN Requirements — The PACS product is a 32 -bit N -Tier application and as such has some minimal hardware requirements. TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 6 of 16 Purchase Order 1 PACS Software, Installation and Training A. Client System i. 1 GHz 32 -bit (x86) or 64 -bit (x64) processor ii. 100mb Available Disk (15 GB of available iii. Windows XP Professional with latest service updates iv. 1 GB RAM Memory v. 10 /100Mb Ethernet Card vi. 17" Monitor —1024 x 768 resolution B. Server System i. Xeon Class Processor — 1 ghz or greater ii. Memory — 16mb per 1000 properties plus 8mb per client iii. Disk space — 100mb per 1000 properties (1gb minimum) iv. Tape backup system v. 10 /100mbEthernet card / CD -Rom vi. 15" Monitor vii. Windows 2003 Server Edition with latest service updates viii. SQL Server 2005 C. LAN Requirements - The PACS product also requires a Local Area Network (LAN) infrastructure to be in place for proper operation. All cable -drops must be Category 5 or better certified throughout the building. 10. Payment Schedule — PACS solution costs will be divided into four (4) payments upon the occurrence of the events specified below. TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 7 of 16 Event Approximate Date Amount Payment #1 PACS Software January, 2008 $ 35,500 Upon execution of this contract and delivery of PACS Software CD Payment #2 Hardware & Third -Party Software February, 2008 $ 36,538 Upon delivery of hardware and third -party software Payment #3 Professional Services Part 1 May, 2008 $ 96,465 Upon completion of the hardware installation & commencement of product installation and training. Payment #4 Professional Services Part 2 June, 2008 $ 96,465 Upon completion of product training and acceptance of product Total $ 264,968 Purchase Order 1 PACS Software, Installation and Training A. Client System i. 1 GHz 32 -bit (x86) or 64 -bit (x64) processor ii. 100mb Available Disk (15 GB of available iii. Windows XP Professional with latest service updates iv. 1 GB RAM Memory v. 10 /100Mb Ethernet Card vi. 17" Monitor —1024 x 768 resolution B. Server System i. Xeon Class Processor — 1 ghz or greater ii. Memory — 16mb per 1000 properties plus 8mb per client iii. Disk space — 100mb per 1000 properties (1gb minimum) iv. Tape backup system v. 10 /100mbEthernet card / CD -Rom vi. 15" Monitor vii. Windows 2003 Server Edition with latest service updates viii. SQL Server 2005 C. LAN Requirements - The PACS product also requires a Local Area Network (LAN) infrastructure to be in place for proper operation. All cable -drops must be Category 5 or better certified throughout the building. 10. Payment Schedule — PACS solution costs will be divided into four (4) payments upon the occurrence of the events specified below. TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 7 of 16 IN WITNESS WHEREOF, the parties TRUE AUTOMATION, INC. Address: 2600 Technology Drive Ste. 900 Plano, Texas 75074 By: Name: Osvaldo Morales Title: President and CEO Effective Date: Purchase Order 1 PACS Software, Installation and Training have executed this Purchase Order as of the Start Date. TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 8 of 16 Kodiak Island Borough, Alaska Address: 710 Mill Bay Road Kodiak, AK 99615 By: Name: Rick Gifford Title: Borough Manager Effective Date: Maintenance Assessor Treasurer Extended A. Yearly Maintenance $ 21,715 $ 15,438 $ 37,153 B. GIS Appraiser Yearly Maintenance $2,000 $ 2,000 C. Internet Property Access Data Publishing $ 1,285 $ 1,285 $ 2.570 D. Property Access ArcIMS Support & Maintenance $2,625 $ 2,625 E. PenPad Support and Maintenance $ 1,000 $ 1,000 F. Software Escrow Services — Iron Mountain Total Annual Maintenance $ 28,625 $ 16,723 $ 45,348 Purchase Order 2 PACS Appraisal Maintenance and Support This Purchase Order to the True Automation Master License and Services Agreement ( "Agreement ") is made and entered into on this effective date by and between True Automation, Inc., a Texas corporation ( "TRUE AUTOMATION ") and Kodiak Island Borough, Alaska ( "Licensee ") pursuant to the terms of the Agreement. Capitalized terms used but undefined in this Purchase Order shall have the meanings assigned to them in the Agreement. 1. Maintenance and Support Service Fees and Payment. TRUE AUTOMATION will provide the following Maintenance services: By: A. Unlimited phone, Internet, and email support during normal business hours for four (4) contacts. B. Software updates as needed to correct and repair reported defects in software C. Software enhancements funded by maintenance agreements with other True Automation clients D. Software enhancements funded by co- development agreements with other True Automation clients as determined by True Automation 2. Licensee shall be invoiced in four (4) equal installments at the beginning of each quarter as follows: January 1, April 1, July 1, and October 1. 3. Fees are broken down as follows: 4. TRUE AUTOMATION may increase the maintenance and support fees only on 120 days' notice to Licensee. The increased maintenance and support fee shall become effective on the date specified in the notice of the increase. 5. Maintenance term shall begin 30 days after conversion acceptance, customer is live on product and any applicable beta testing term has expired. IN WITNESS WHEREOF, the parties have executed this Purchase Order as of the Start Date. TRUE AUTOMATION, INC. Kodiak Island Borough, Alaska Address: 2600 Technology Drive Ste. 900 Plano, Texas 75074 Address: 710 Mill Bay Road Kodiak, AK 99615 By: Name: Osvaldo Morales Name: Rick Gifford Title: President and CEO Title: Borough Manager Effective Date: Effective Date: TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 9 of 16 Upgrade Assurance Assessor Treasurer Extended Year 1 — 2008 $8,214 $5,476 $13,690 Year 2 — 2009 $8,214 $5,476 $13,690 Total $16,428 $10,942 $27,380 This Purchase Order to the True Automation Master License and Services Agreement ( "Agreement ") is made and entered into on this effective date by and between True Automation, Inc., a Texas corporation ( "TRUE AUTOMATION ") and Kodiak Island Borough, Alaska ( "Licensee ") pursuant to the terms of the Agreement. Capitalized terms used but undefined in this Purchase Order shall have the meanings assigned to them in the Agreement. 1. PACS.Net upgrade services. Upon the availability of the upcoming PACS.Net product version, TRUE AUTOMATION will provide the following services: A. Communicate with Licensee and establish an agreeable upgrade plan for the implementation of PACS.Net. B. Perform all upgrade services necessary to migrate Licensee to PACS.Net platform including: 1. Database schema upgrade 2. Stored procedure upgrade 3. Middle -tier upgrade 4. Client -side program upgrades C. Distribute computer- based - training videos of the new PACS.Net interface for the benefit of Licensee's users. D. Conduct end -user training onsite at Licensee's office for a maximum of five (5) days. 2. License Fee: None. PACS.Net is an upgrade to the existing PACS AppraisalTM & PACS Collections T/ software. No additional license fees are due from Licensee. 3. Professional Services Fees: Licensee agrees to pay TRUE AUTOMATION a sum $27,380 for the professional services related to the migration of Licensee to the new version of the software PACS.Net. This fee is inclusive of travel and lodging expenses. 4. Licensee shall be invoiced for PACS.Net Upgrade Assurance in four (4) equal installments at the beginning of each quarter as follows: January 1, April 1, July 1, and October 1 and shall extend for two (2) years until sum of all payments equal $27,380. 5. Fees are broken down as follows 6. PACS.Net Upgrade Assurance shall begin on the same date as "Purchase Order 2 — PACS Appraisal Maintenance and Support". IN WITNESS WHEREOF, the parties have executed this Purchase Order as of the Start Date. TRUE AUTOMATION, INC. Address: 2600 Technology Drive Ste. 900 Plano, Texas 75074 Purchase Order 3 PACS.Net Upgrade Assurance By: By: Name: Osvaldo Morales Name: Rick Gifford Title: President and CEO Title: Borough Manager Effective Date: Effective Date: TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 10 of 16 Kodiak Island Borough, Alaska Address: 710 Mill Bay Road Kodiak, AK 99615 Purchase Order 4 GIS Services This Purchase Order to the True Automation Master License and Services Agreement ( "Agreement') is made and entered into on this effective date by and between True Automation, Inc., a Texas corporation ( "TRUE AUTOMATION ") and Kodiak Island Borough, Alaska ("Licensee ") pursuant to the terms of the Agreement. Capitalized terms used but undefined in this Purchase Order shall have the meanings assigned to them in the Agreement. 1. Introduction This purchase order has been prepared in order to provide the Licensee a completed parcel base map of the properties in their borough. This parcel base map will be seamlessly integrated with the appraisal records that the Licensee currently maintains for appraisal and tax roll production. This integrated mapping system will serve as a valuable tool for the Licensee. 2. GIS Professional Services: This purchase order includes the professional services that are needed in order to complete the base map project. Included are project management services, all quality assurance checks and any additional programming services needed to more accurately and effectively build the base map for Licensee. 3. Scope of Work: A. Data Acquisition and Production For property ownership lines, TRUE AUTOMATION will use the current electronic and paper maps. For positional control, TRUE AUTOMATION will use the existing NRCS orthoimagery available for Licensee. TRUE AUTOMATION will produce the base map set in State Plane Coordinates, set to NAD83 specifications. One on -site visit for data acquisition, quality control review and project meetings are included in this proposal. B. Parcel Base Map The parcel base map layer will include the following layers: E. Training 1. Parcel Layer The parcel layer will include the boundaries for each parcel of property as described by the legal description for that property. TRUE AUTOMATION will use the existing Auto CAD information and realign the parcel lines to the orthoimagery. The account number for each parcel will be placed in the Prop_ID field. Ownership links will be established on this layer. 2. Abstract Layer Each Abstract/Section boundary line will be mapped. Abstract/Section names and numbers will be added to the feature class attributes. 3. Subdivision Layer Each subdivision boundary will be identified and mapped as a component of the base map. For each subdivision, the name and AS code will be added to the feature class attributes. 4. Streets Layer A road centerline layer will be created for each road within Licensee's geographical area. This layer will be created from the existing Road data set. Additionally, road edge /road ROW's will be mapped and matched to the orthoimagery. 5. Jurisdictional Boundary Layers Each taxing jurisdiction in the Licensee's geographical area will be mapped with attributes added for name and /or code. This includes the County, Schools, Cities and Special Districts. Once this layer has been created, taxing entity codes in the appraisal records can be verified against the Jurisdictional Boundary in GIS for quality assurance purposes. C. Other layers as identified by Licensee 1. Additional layers contained in Licensee's AutoCAD files. Licensee will have 67 hours available for this effort. D. Orthoimage processing 1. TRUE AUTOMATION will take the existing NCRS orthoimagery and reproject it into the state plane coordinate system for use in the parcel mapping project. 2. TRUE AUTOMATION will recompress the orthoimagery after the reprojection. 1. Two days of onsite training are included in this proposal which will commence upon the first delivery milestone. One day of training will be conducted upon the first delivery milestone and a second day upon completion of the project. TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 11 of 16 Purchase Order 4 GIS Services 4. Pricing A. Base Map Creation TRUE AUTOMATION will be constructing this GIS project using different data input sources. The current GIS layer data will be retro -fitted to accurate positional standards based on the existing orthoimagery. As part of this project, TRUE AUTOMATION will move the existing parcel lines, and tag each parcel to the Appraisal Roll. The price for this work is: Completed Parcel Base Map $39,280 B. Orthoimage Processing $1,000 C. Additional Layer Creation $10,000 D. Software - PACS GIS Viewer Licenses (Included in PACS Contract) Total Amount $50,280 5. Deliverables & Payment Schedule A. The GIS Base Map is scheduled to be completed on a 10 -14 month schedule. Payments will be based on project completion milestones that are reached. 1. Initial payment upon signing of contract (10% down): 2. 25% completion point 3. 50% completion point 4. 75% completion point 5. 90% - 100% completion point 6. Total $ 5,028 $ 12,500 $ 12,500 $ 12,500 $7,752 $50,2801 B. TRUE AUTOMATION will delivery all parcel layers as outlined in item 2 — Scope of Work. C. TRUE AUTOMATION will return all source documents that were used to create the base map. All data will be delivered via CD, Tape or FTP file transfers, in the manner that best suites Licensee. 6. Base Map Maintenance A. Maintenance Once the base map is complete, Licensee may elect to have TRUE AUTOMATION perform maintenance functions in order to keep the base map up -to -date and accurate. This protects the Licensee's investment in the original base map. Under a separate purchase order. TRUE AUTOMATION will perform the following services: • Update borough's GIS from deed split -outs and property divisions • Input new platted subdivisions into GIS • Update GIS property id's for merged properties • Modify Taxing Jurisdiction boundaries for Annexations and De- annexations B. Pricing TRUE AUTOMATION maintenance price is $1.50 per parcel. Estimated cost 8,000 Parcels @ $ 1.50 $ 12,000 IN WITNESS WHEREOF, the parties have executed this Purchase Order as of the Start Date. TRUE AUTOMATION, INC. Kodiak Island Borough, Alaska Address: 2600 Technology Drive Ste. 900 Plano, Texas 75074 By: By: TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL Page 12 of 16 Address: 710 Mill Bay Road Kodiak, AK 99615 Name: Osvaldo Morales Name: Rick Gifford Title: President and CEO Title: Borough Manager Effective Date: Effective Date: Office Contact: Date Category: True Automation, Inc. 2600 Technology Drive, Suite 900 Plano, TX 75074 www.trueautomation.com Kodiak Island, AK Torn Anderson, Assessor 12/20/2007 2 tdd411#' 4 +aN , +¢e Number of Parcels Number of Tax Bills PACS Appraisal Application Number of Appraisal Users Number of Collections Users Appraisal Users Licenses GIS Appraiser Licenses PACS Collection Application Collections User Licenses PACS Software Sub -Total Special Services Pre- Install Visits / Project Management Appraisal Pre- Install Visits / Project Management Collections Custom Programming Appraisal Custom Programming Collections (estimated) PropertyAccess with ArcIMS support Home Page Setup with Appraisal and/or Tax Info 30 Day Properly Access Web Site Total Special Services Conversion Standard Conversion for Appraisal $ 30,000 Standard Conversion for Collections $ 19,200 Roll History Conversion for 5 years $ 12,000 Total Conversion Services $ 42,000 $ 19,200 Software Installation PACS Appraisal Product Installation $ 14,470 PenPAD Installation end Configuration $ 4,870 PACS Collections Product Installation $ 9,670 Total Software Installation Services $ 19,340 $ 9,670 Training Days Trips PACS Appraisal Training 10 2 $ 18,350 PACS Collections Training 7 2 $ 14,045 PenPad Training 2 1 $ 4,870 SQL Training 0.5 1 $ 2118 System AdministrationTraining 0.5 0 $ 718 Total Training $ 26,655 $ 14,045 Hardware Installation Server Installation and Configuration 2 0 $ 2,870 PC Installation and Configuration 1 0 $ 1,435 Network Equipment Installation and Configuration 1 0 $ 1,435 Server Installation and Configuration 2 1 $ 4,870 PC Installation and Configuration 1 0 $ 1,235 Network Equipment Installation and Configuration 1 0 $ 1,435 Total Hardware Installation Services $ 5,740 $ 7,540 Professional Services Total a KS�wye`lr7aa!rAa9n'�d dKa 4 k #a ti,i #i Pxna s: §xsaxx.r a�n MS SQL 2005 Standard Edition MS SQL 2005 Standard Edition Media on CD MS SQL 2005 Client licenses - Appraisal MS SQL 2005 Client licenses - Collections MS Windows Server 2003 - Enterpnse MS Windows Server - Client Licenses ESRI Map Object Licenses Third -Party Software Total Subtotal vv!:. €0y* i1 a 0X',:R4+# i x k4 ;itri 9z ..i•k4 #+4} Total Hardware Grand Total Hardware Total EXHIBIT A 9,500 6,712 4 $ 12,000 4 $ 2,000 $ 8,000 1 $ 3,500 $ 3,500 4 $ 2,000 $ $ 23,500 $ $ 4,870 $ 4,870 200 Herrs $ 15,000 260 Hours $ 19,500 $ 3,500 $ 1,000 $ 24,370 $ 24,370 $ 118,105 $ 74,825 5 192,930 ®e.zx a'4u t.a 1 S 946 9 946 1 Si 32 $ 32 6 $ 173 $ 1,038 4 $ 173 $ 4 9 100 $ $ 27,132 $ TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL EXHIBIT A Page 13 of 16 4,000 8,000 12,000 $ 35,500 692 400 $ 400 2,416 $ 1,092 $ 3,508 $ 144,021 $ 87,917 $ 231,938 5,898 f 27,132 $ 5,898 $ 33,030 $ 171,153 $ 93,815 $ 264,968 Required Hardware Optional hardware EXHIBIT A Assessor Collector Description QTY Price Extended Cost Cost Database Server (See Server tab for Details) 1 $ 8,778 $ 8,778 $ 6,140 $ 2,638 Job Server (See Server tab for Details) 1 $ 5,110 $ 5,110 $ 3,580 $ 1,530 Sonicwall PRO 4060 (See Server tab for Details) 1 $ 5,780 $ 5,780 $ 4,050 $ 1,730 Assumptions: Customer will provide Server Rack Customer will provide Windows Server GALS (existing) Customer will provide Existing AV Solution Customer will provide Existing Backup Solution Customer will provide Existing UPS Solution Customer will provide Existing KVM Solution Customer will provide Existing Network Switches PACS Images and other file attachments will be stored on existing local SAN Database server will have a separate dedicated SQL instance for PACS use SQL 2005 x64 licenses needed are listed in 3rd Party Software Total Server Hardware Costs $ 19,668 $ 13,770 $ 5,898 Pen Pads for Assessor 2 $ Document Scanners for Assessor 1 $ Optional Hardware Total $ 13,362 $ 13,362 $ Total Server Hardware Costs $ 33,030 $ 27,132 $ 5,898 TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL EXHIBIT A Page 14 of 16 6,106 $ 12,212 $ 12,212 $ 1,150 $ 1,150 $ 1,150 $ Server Hardware Specification EXHIBIT A PACS Database Server Dell PowerEdge 2950 (Rackmount) $ 8,778 2 CPU Quad Core Xeon 4mb Cache 2.33GHz Processors 8 Gig RAM Memory (4x2gb) - Dual Ranked Fully Bufferred DIMMS 1 x 73gb hard disk (15K) NonRAID - DB logs 2 x 73gb hard disk (15k) RAID 1 - OS 3 x 300gb hard disk (15k) RAID 5 - Data 1 x 300gb hard disk (15k) COLD -SPARE Floppy drive 24X CD- ROM /DVD 56k internal modem Redundant power supply On board network card Universal Sliding RapidNersa Rails, includes Cable Mgmt Windows 2003 Server Standard Edition (with 5 CALS) 3 -Year Next business day Parts + Onsite Labor (M -F 8am -6pm) Shipping Total Estimated Cost $ 8,778 Job Server $ 5,110 Dell PowerEdge 1950 (Rackmount) 2 CPU Quad Core Intel® Xeon ®, 4MB Cache, 2.33GHz 8 Gig RAM Memory (4x2gb) - Dual Ranked Fully Bufferred DIMMS 2 x 146GB hard disk (15k) RAID 1 On board GB network card Windows 2003 Server Standard Edition x64 w/5 CALS 3 -Year Next business day Parts + Onsite Labor (M -F 8am -6pm) Shipping Total Estimated Cost $ 5,110 Sonicwall PRO 4060 $ 5,780 Rackmount 1000 VPN client sessions Gateway Anti -Virus (1 year) Anti - Spyware and Intrusion Prevention Service (1 year) Content Filtering Service (1 year) Premium Edition Dynamic 24x7 Support (1 year) Viewpoint License Total Estimated Cost $ 5,780 TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL EXHIBIT A Page 15 of 16 Penpad Tablet Specifications Part # Qty Sale Price Stylistic® ST5111 AF70K10605563102 1 $ 3,418.27 10.4" XGA TFT with Indoor/Outdoor Reflective Front -lit Display 1.2 Ghz Intel® Core TM Duo Processor 2GB (1GB X 2) 80GB (5400RPM) SATA Shock - Mounted Hard Drive Dedicated Smart Card Slot Integrated Bluetooth wireless Gigabit Ethernet LAN Wireless LAN Integrated Multinational 56K V.90 Modem USB 2.0 Genuine Windows® XP Tablet PC Edition 2005 Microsoft® Office 2003 Small Business Edition Mobile 87 -key wireless keyboard (no touchpad) USB optical mouse with scroll One -year International Limited Warranty Accessories : Extended Two -Year Service Plan 3yr Screen Damage Protection Plan Fujitsu Auto Air Adapter Universal Harsh Environment Case Universal ST5000 Zipper Bump Case Fujitsu Deluxe Pen Tether, With Swivel Replacement Stylus Set (2 Pack) Tablet Dock with DVD /CD -RW Combo Drive and AC adapter Fujitsu Screen Protector notebook screen protector (6 Pack) Creative Web Cam Live Ultra Microsoft SQL Server 2005 STD Edition SQL Server 2000 Media kit TOTAL FIELD DEVICE SOLUTION COST: EXHIBIT A TRUE AUTOMATION, INC. COMPANY CONFIDENTIAL EXHIBIT A Page 16 of 16 FPC38- 0212 -01 FPC38- 0214 -01 FPCAA08 FPCCC48 FPCCC78 FMWST2 FPCPN23AP FPCPR69AQ FPCSPO8AP 73VF007000000 228 -04455 231 -09125 1 $ 307.76 1 $ 477.82 1 $ 93.24 1 $ 129.78 1 $ 69.86 1 $ 13.20 1 $ 49.70 1 $ 452.34 1 $ 39.06 1 $ 76.80 1 $ 945.60 1 $ 32.40 $ 6,105.84