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HomeMy WebLinkAboutContract 49053 a = lb Nil CONIMM ACT NO. O S73 C) MASTER SERVICES AGREEMENT BETWEEN )ORTHE THE CITY OF FORT WORTHAND M&K RECOVERY GROUP, INC. CONSIGNMENT OF ILLEGAL 8-LINER GAMBLING MACHINES J` �. O l 6 This MASTER SERVICES AGREEMENT — Consignment of Illegal 8-Liner Gambling Machines ("Agreement") is made and entered into by and between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation, acting by and through Valerie R. Washington, its duly authorized Assistant City Manager, and M&K Recovery Group, Inc., located at 9104 Cameron Road, Austin, Texas 78754 ("Contractor"), acting by and through its authorized representative. For purposes of this Agreement, the term Contractor shall include Contractor, its authorized representatives, officers, employees, and instructors who provide services on Contractor's behalf. The term City shall include its authorized representatives, officers, employees, and directors. In this Agreement, City and Contractor may be referred to collectively as "Parties" and each individually as "Party." RECITALS The City and Contractor agree that the following statement are true and correct and constitute the basis on which they have entered into this Agreement. WHEREAS, in 2014, following a competitive sealed proposals process, the City of Dallas, Texas("Dallas")entered into an agreement with Contractor to provide storage and consignment services for seized illegal 8-liner gambling machines, that agreement being City of Dallas Contract authorized by Resolution No. 13-2144 and attached hereto as Exhibit One(the"Dallas Contract"); and WHEREAS, under the terms of the Dallas Contract, Contractor agreed to extend its prices and services to entities that have a purchasing inter-local cooperation agreement with Dallas; and WHEREAS, since 2004, the City and Dallas have been parties to a purchasing inter-local operation agreement; and WHEREAS, City and Contractor wish to enter into an agreement for Contractor to provide City with storage and consignment services for seized illegal 8-liner gambling machines and other specified services, subject and in accordance with the Dallas Contract, as modified herein by the Parties to tailor the arrangement to the City's specific needs and goals. NOW,THEREFORE, for and in consideration of the premises outlines above and the mutual covenants contained herein, City and Contractor do hereby agree as follows: AGREEMENT L CONTRACT DOCUMENT PRIORITY The relationship between the City and Contractor shall be governed by the following documents (each a"Contract Document," collectively the "Contract Documents"), all of which together constitute a single contract: OFFICIAL RECORD Master Services Agreement CITY SECRETARY CFW and M&K Recovery Group,Inc. Page 1 of 8 FT.WORTH,TX 1. This Master Services Agreement ("Agreement") 2. Exhibit One-Contract between the City of Dallas and M&K Recovery Group,Inc.,including all exhibits, renewals, and attachments thereto(collectively the"Dallas Contract") 3. Exhibit Two-Conflict of Interest Documentation II. SCOPE OF SERVICES Contractor hereby agrees, with good faith and due diligence, to provide City with the services defined and described herein and in the Dallas Contract, subject to such modifications as are made and agreed to in this Agreement. III. MODIFICATIONS TO DALLAS CONTRACT 1. To the extent terms are defined in this Agreement are assigned a different meaning than in the Dallas Contract, the definitions assigned herein shall govern, notwithstanding any language in the Dallas Contract to the contrary. In construing and applying the Dallas Contract to the transaction between Contractor and the City, all such terms, including, but not limited to,"City", "Consignee", and"Contractor"shall be read and interpreted in accordance with the definitions assigned in this Agreement. 2. The Parties wish to provide for a contract term that is different than the one in effect for the Dallas Contract. Therefore, Section 6 of the Dallas Contract, "INDEPENDENT CONTRACTOR" shall not apply as between the Parties, and the following provision shall apply instead: 6. Independent Contractor Contractor shall operate hereunder as an independent contractor and not as an officer, agent, or servant or employee of City. Contractor shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees, or invitees. The doctrine of respondeat superior shall not apply as between City and Contractor, its officers, members, agents, servants, employees, subcontractors, program participants, licensees, or invitees, and nothing herein shall be construed as creating a partnership or ioint enterprise between City and Contractor. No federal, state, or local income tax, nor any payroll tax of any kind, shall be withheld or paid by City on behalf of Contractor. Contractor shall not be treated as an employee with respect to the services performed pursuant to this Agreement for federal or state tax purposes. It is expressly understood and agreed that officers, members, agents, employees, subcontractors, licensees, or invitees of Master Services Agreement CFW and M&K Recovery Group,Inc. Page 2 of 8 Contractor and any program participants hereunder are not eligible for,and shall not participate in any employer pension, health, or other fringe benefit plan provided by City. It is expressly understood and agreed that City does not have the legal right to control the details of the tasks performed hereunder by Contractor its officers, members, agents, employees, subcontractors, program participants,licensees, or invitees. City shall in no way nor under any circumstances be responsible for any property belonging to Contractor its officers, members,agents,employees,subcontractors, program participants, licensees, or invitees, which may be lost, stolen, destroyed, or in any way damaged. 3. The Parties wish to provide for a contract term that is different than the one in effect for the Dallas Contract.Therefore, Section 7 of the Dallas Contract, "INDEMNITY" shall not apply as between the Parties, and the following provision shall apply instead: 7. Liability and Indemnity CONTRACTOR SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY DAMAGE, AND/OR PERSONAL INJURY,INCLUDING DEATH,TO ANY AND ALL PERSONS,OF ANY KIND OR CHARACTER WHETHER REAL OR ASSERTED TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS) OR OMISSION(S),MALFEASANCE, OR INTENTIONAL MISCONDUCT OF CONTRACTOR ITS OFFICERS, AGENTS, SERVANTS, OR EMPLOYEES. CONTRACTOR SHALL BE RESPONSIBLE FOR ALL INJURY CLAIMS MADE BY ANY OF ITS EMPLOYEES SUBCONTRACTORS OFFICERS AGENTS OR SERVANTS WHICH ARISE FROM THEIR PERFORMANCE UNDER OR IN FURTHERANCE OF THIS AGREEMENT. CONTRACTOR AGREES TO DEFEND INDEMNIFY AND HOLD THE CITY, ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES HARMLESS AGAINST ANY AND ALL CLAIMS, LAWSUITS, ACTIONS, COSTS,AND EXPENSES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, THOSE FOR PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO OWNER'S BUSINESS AND ANY RESULTING LOST PROFITS)AND/OR PERSONAL INJURY (INCLUDING DEATH)THAT MAY RELATE TO,ARISE OUT OF,OR BE OCCASIONED BY(D CONTRACTOR'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR (II) ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL MISCONDUCT OF CONTRACTOR ITS OFFICERS,AGENTS,ASSOCIATES, EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY), OR SUBCONTRACTORS RELATED TO THE PERFORMANCE OF THIS AGREEMENT; EXCEPT THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION SHALL NOT APPLY TO ANY LIABILITY RESULTING FROM THE SOLE NEGLIGENCE OF THE CITY OR ITS OFFICERS, AGENTS, EMPLOYEES OR SEPARATE CONTRACTORS AND IN THE EVENT OF Master Services Agreement CFW and M&K Recovery Group,Inc. Page 3 of 8 JOINT AND CONCURRENT NEGLIGENCE OF BOTH CONSULTANT AND CITY, RESPONSIBILITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. NOTHING HEREIN SHALL BE CONSTRUED AS A WAIVER OF THE CITY'S GOVERNMENTAL IMMUNITY AS FURTHER PROVIDED BY THE LAWS OF TEXAS. CONTRACTOR shall require all of its subcontractors to include in their subcontracts a release and indemnity in favor of City in substantially the same form as above. This section shall survive the expiration or termination of this Agreement. 4. The Parties wish to provide for contract terms that are different than the ones in effect for the Dallas Contract. Therefore, Section 8 of the Dallas Contract, "INSURANCE REQUIREMENTS"and any portion of Attachment One to the Dallas Contract that conflicts with the terms below shall not apply as between the Parties, and the following terms shall apply instead: Attachment 1: Section C. 2. Business Automobile Liability Insurance covering owned,hired,and non-owned vehicles,with a minimum combined bodily injury(including death)and property damage coverage at a minimum of$1,000,000 per occurrence. 3. Commercial General Liability Insurance including but not limited to premises/operations, personal and advertising injury, products/completed operations, independent contractors and contractual liability with minimum combined bodily injury (including death) and property damage coverage with a minimum of$1,000,000 per occurrence and$2,000,000 annual aggregate. If this insurance is written on a claims-made form, coverage shall be continuous (by renewal or extended reporting period) for not less than twelve (12) months following completion of the contract and acceptance by the City. Coverage, including any renewals, shall contain the same retroactive date as the original policy applicable to this contract. REQUIRED PROVISIONS CONTRACTOR agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, the following required provisions: a. Name the City of Fort Worth and its officers, employees and elected representatives as additional insureds to all applicable coverages. b. State that coverage shall not be canceled, non-renewed or material changed except after thirty (30) days written notice by Master Services Agreement CFW and M&K Recovery Group,Inc. Page 4 of 8 certified mail to the parties listed in the notice section of this Master Services Agreement. c. Waive subrogation against the City of Fort Worth, its officers and employees, for bodily injury (including death), property damage or any other loss. d. Provide that the CONTRACTOR'S insurance is primary insurance as respects the CITY, its officers, employees and elected representatives. e. Ensure that all certificates of insurance identify the service or product being provided and name the City's Police Department as the Certificate Holder. To the extent the terms of Section 8 and Attachment One to the Dallas Contract do not conflict with the terms included herein,they shall remain in full force and effect. 5. The Parties wish to provide for a contract term that is different than the one in effect for the Dallas Contract. Therefore, Section 10 of the Dallas Contract, "CONFLICT OF INTEREST" and any portion of Attachment One to the Dallas Contract that conflicts with the terms below shall not apply as between the Parties, and the following provision shall apply instead: 10. CHAPTER XXVII: MISCELLANEOUS § 16 OFFICERS OR EMPLOYEES OF THE CITY NOT TO HAVE FINANCIAL INTEREST IN ANY CONTRACTS OF THE CITY. No officer or employee of the city shall have a financial interest,direct or indirect, in any contract with the city, or be financially interested,directly or indirectly, in the sale to the city of any land, materials, supplies, or services, except on behalf of the City as an officer or employee. An officer or an employee of a bank that serves as the City's depository bank shall be deemed not to have a financial interest in the City's contract.Any willful violation of this section shall constitute malfeasance in office, and any officer or employee found guilty thereof shall thereby forfeit his office or position. Any violation of this section, with the knowledge, expressed or implied, of the person or corporation contracting with the City Council,shall render the contract involved voidable by the city manager or the City Council. (Ord. 16797, § 1(XVIII), 1-24-2006, approved 5-13-2006) 6. Provision 12"Notice of Contract Claim"of the Dallas Contract shall not apply as between Contractor and City. 7. The Parties wish to provide for a contract term that is different than the one in effect for the Dallas Contract. Therefore, Section 13 of the Dallas Contract, "NOTICES"shall not apply as between the Parties, and the following provision shall apply instead: Master Services Agreement CFW and M&K Recovery Group,Inc. Page 5 of 8 13. Any notices required to be given hereunder shall be given by certified mail,return receipt to the following addresses: To The CITY: To CONTRACTOR: CITY OF FORT WORTH M&K RECOVERY GROUP,INC. ATTN: Valerie R.Washington ATTN: Matthew C. Decareau Assistant City Manager Vice President 200 Texas Street,Third Floor 100 Willow Street Fort Worth,Texas 76102 North Andover,Massachusetts 01845 Facsimile: Facsimile: With a copy to the City Attorney's Office(Facsimile: 817-392-8359) 8. Notwithstanding any language to the contrary in Section 17, "Venue" of the Dallas Contract,Contractor and City hereby consent to the exclusive jurisdiction of the state and federal courts located within Tarrant County, Texas with respect to disputes arising hereunder. 9. Notwithstanding any language to the contrary in the Dallas Contract,Contractor and City would like to add an additional section entitled"Government Powers" and shall include the following: 24. Governmental Powers Both Parties agree and understand that the City does not waive or surrender any of its governmental powers or immunities by execution of this Agreement. 10. Notwithstanding any language to the contrary in the Dallas Contract, Contractor and City would like to add an additional section entitled "Confidentiality" and shall include the following: 25. Confidentiality Contractor shall notify City of any request for City's information and allow City the opportunity to object to release of information prior to disclosing any City documents or information to a third party. Contractor acknowledges that City is a governmental entity as defined by Texas law and is subject to the Texas Public Information Act. Contractor consents to the release of these contract documents, including all documents listed in Section I above, and has represented to City that Contractor does not claim any of the information included herein is proprietary in nature and that no harm will come from its release. 11. Notwithstanding any language to the contrary in the Dallas Contract, Contractor and City would like to add an additional section entitled "Storage" and shall include the following: Master Services Agreement CFW and M&K Recovery Group,Inc. Page 6 of 8 26. Storage Contractor's storage trailers shall be placed at the storage location provided by the City of Fort Worth's Police Department. The City shall provide the storage location's address to Contractor at least three (3) days prior to the initial trailer delivery. City shall provide Contractor notice of any location changes for future storage trailers in writing with at least three (3) days' notice prior to the next trailer delivery. V. SIGNATURE AUTHORITY The person signing this Agreement hereby warrants that he or she has the legal authority to execute this Agreement on behalf of his or her respective party,and that such binding authority has been granted by proper order, resolution, ordinance, or other authorization of the entity. The other party is fully entitled to rely on this warranty and representation in entering into this Agreement. VI. ENTIRETY OF AGREEMENT;AMENDMENT This written instrument (together with all attachments, exhibits, schedules, and appendices) constitutes the entire understanding between the parties concerning the work and services to be performed hereunder,and any prior or contemporaneous,oral,or written agreement that purports to vary from the terms hereof shall be void. Notwithstanding anything in any Contract Documents to the contrary, this Agreement and the other Contract Documents may only be amended via written instrument signed by both parties and dates after the execution date of this Agreement, provided, however that the Parties agree that any applicable changes in local, state, or federal laws, rules, or regulations that may occur during the term of this Agreement shall be automatically incorporated into this Agreement without written amendment hereto and shall become a part hereof as of the effective date of the law,rule,or regulation. [Signature Page Follows] Master Services Agreement CFW and M&K Recovery Group,Inc. Page 7 of 8 IN WI N SS WHEREOF, the parties hereto have executed this Agreement in multiples on this, the ay of , 2017. CITY OF FORT WORTH: M&K RECOVERY GROUP,INC. By: "J� By: Valerie R. Washington Name: _ Assistant City Manager Title: �Jnec�ta� 5i�e�� � �oy�l�,,✓t Date: `�, �� Date: 2 APPROVAL RECOMMENDED BY: By: Joel F. Fitzgerald Chief of Police Date: APPROVED AS TO FORM AND LEGALITY: By Jo ate sistant City Attorney �O R T ATTEST: !— U By: L� ` Mary J. Kay erTE P� City Secreta Contract Authorization: C-28140 FORM 1295 Certification No.: 2017-161597 Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract,including ensuring all performance and reporting requirements. /D/ ' GS — OFFICIAL RECORD ChadPlowman Captain CITY SECRETARY Fort Worth Police Department FT.WORTH,TX Master Services Agreement CFW and M&K Recovery Group,Inc. Page 8 of 8 Exhibit 1 STATE OF TEXAS CONTRACT FOR CONSIGNMENT SERVICES COUNTY OF DALLAS THIS CONTRACT is made and entered into by and between the CITY OF DALLAS, a Texas municipal corporation, located in Dallas County, Texas (hereinafter called "City") and M&K Recovery Group, Inc., authorized to conduct business in the State of Texas whose principal place of business is 9104 Cameron Rd., Austin, TX 78754, (hereinafter called "Consignee"). 1. DESCRIPTION OF WORK A. For the consideration agreed below to be paid to Consignee by City, Consignee shall provide consignment services for the sale of certain 8-liner gambling machines in the City and County of Dallas, Texas, hereinafter called the "Services." The Services are to be performed in a good and workmanlike manner and shall conform in every respect to the following: (i) City's Request for Proposals; (ii) City's Specifications for the Services (the "Specifications"); and (iii) Consignee's Proposal (the "Proposal"). B. All of the documents referred to in Subsection A of this Section I are incorporated by reference and made a part of this Contract for all purposes as though each were written word for word in this Contract; provided, however, that in case of a conflict in the language of the Request for Proposals, the Specifications, the Proposal and this Contract, the terms and conditions of this Contract shall control and are final and binding on both parties, and the Specifications shall control where they conflict with the Proposal. Consignee and City further agree that should any dispute or questions arise respecting the true construction or meaning of any of these documents, the true meaning shall be decided by City and such decision shall be binding and conclusive upon Consignee. 2. PERFORMANCE OF SERVICES AND COORDINATION Consignee represents that, prior to submitting the Proposal and executing this Contract, Consignee became and remains thoroughly acquainted with all matters relating to the performance of this Contract, all applicable laws and all of the terms and conditions of this Contract. All Services under this Contract shall be coordinated under, and performed to the satisfaction of, City's Chief of the Dallas Police Department, or his designated representative, hereinafter called "Director." Consignee represents that all its employees or associates who perform services under this Contract shall be fully qualified and competent to perform the services described in Section 1. 3. PAYMENT In consideration for the Services to be performed by Consignee under the terms of this Contract, Consignee shall receive a commission on all 8-liner gambling machines sold, the 1 percentage of the commission to be in accordance with the Specifications and Proposal. City may, at its option, offset any amounts due and payable under this Contract against any debt (including taxes) lawfully due to City from Consignee, regardless of whether the amount due arises pursuant to the terms of this Contract or otherwise and regardless of whether or not the debt due to City has been reduced to judgment by a court. 4. TERN/I: SCHEDULE The term of this Contract shall commence on February 18, 2014 and terminate on February 17, 2017, unless sooner terminated in accordance with the provisions of this Contract. City may extend the term of the Contract for up to two one year periods, at City's option. For good cause shown by Consignee, the Director may extend the time to perform the Services beyond the Contract expiration date. 5. PERMITS; COMPLIANCE WITH LAWS AND REGULATIONS A. Consignee shall possess or obtain any necessary permits required by City ordinance or State or Federal law for the performance of the Services prior to commencing the Services. City has developed an Environmental Management System (EMS), based upon International Standards Organization (ISO) Standard 14001. As part of the EMS, City has adopted an environmental policy. Contractor acknowledges receipt of the environmental policy as a part of the Request for Proposal and shall adhere to the policy and provide information to City in the form and at the times requested by City in furtherance of the policy. B. This Contract is entered into subject to and controlled by the Charter and ordinances of the City of Dallas and all applicable laws, rules, and regulations of the State of Texas and the Government of the United States of America. Consignee shall, during the course of performance of this Contract, comply with all applicable City codes and ordinances, as amended, and all applicable State and Federal laws, rules and regulations, as amended. 6. INDEPENDENT CONTRACTOR Consignee's status shall be that of an independent contractor and not an agent, servant, employee, or representative of City in the performance of the Services. Consignee shall exercise independent judgment in performing duties under this Contract and is solely responsible for setting working hours, scheduling or prioritizing the work flow and determining how the work is to be performed. No term or provision of this Contract or act of Consignee in the performance of this Contract shall be construed as making Consignee the agent, servant or employee of City, or making Consignee or any of its employees eligible for the fringe benefits, such as retirement, insurance and worker's compensation, which City provides its employees. 2 7. INDEMNITY Consignee agrees to defend, indemnify and hold City, its officers, agents and employees, harmless against any and all claims, lawsuits, judgments, costs and expenses for personal injury (including death), property damage or other harm for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by Consignee's breach of any of the terms or provisions of this Contract, or by any negligent or strictly liable act or omission of Consignee, its officers, agents, employees or subcontractors, in the performance of this Contract; except that the indemnity provided for in this paragraph shall not apply to any liability resulting from the sole negligence or fault of City, its officers, agents, employees or separate contractors, and in the event of joint and concurring negligence or fault of Consignee and City, responsibility and indemnity, if any, shall be apportioned in accordance with the law of the State of Texas, without waiving any governmental immunity available to City under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this paragraph are solely for the benefit of the parties to this Contract and are not intended to create or grant any rights, contractual or otherwise, to any other person or entity. 8. INSURANCE REQUIREMENTS A. Consignee shall procure, pay for, and maintain during the term of this Contract, with a company authorized to do business in the State of Texas and otherwise acceptable to City, the minimum insurance,coverage contained in City's Specifications, attached to and made a part of this Contract. B. Approval, disapproval or failure to act by City regarding any insurance supplied by Consignee or its subcontractors shall not relieve Consignee of full responsibility or liability for damages, errors, omissions or accidents as set forth in this Contract. The bankruptcy or insolvency of Consignee's insurer or any denial of liability by Consignee's insurer shall not exonerate Consignee from the liability or responsibility of Consignee set forth in this Contract. 9. TERMINATION City's Director may, at its option and without prejudice to any other remedy City may be entitled to at law, in equity or elsewhere under this Contract, terminate further work under this Contract in whole or in part for cause or for the convenience of City by giving at least thirty (30) days advance written notice of termination to Consignee with the understanding that, except as provided in the specifications, all performance being terminated shall cease as of a date to be specified in the notice. City also has the right to request that Consignee assign and transfer to City all of Consignee's rights and obligations under existing subcontracts it has to perform Contract work in the event of termination under this Section. City shall compensate Consignee in accordance with the terms of this Contract for Contract work properly performed prior to the date of termination specified in the notice, following review of same by City's Director. Consignee shall not, however, be entitled to lost or anticipated profits should City choose to exercise its option to terminate. 3 10. CONFLICT OF INTEREST The following section of the Charter of the City of Dallas shall be one of the conditions, and a part of, the consideration of this Contract, to wit: "CHAPTER XXIL Sec. 11. FINANCIAL INTEREST OF EIMPLOYEE OR OFFICER PROHIBITED -- (a) No officer or employee shall have any financial interest, direct or indirect, in any contract with the City or be financially interested, directly or indirectly, in the sale to the City of any land, materials, supplies or services, except on behalf of the City as an officer or employee. Any violation of this section shall constitute malfeasance in office, and any officer or employee guilty thereof shall thereby forfeit the officer's or employee's office or position with the City. Any violation of this section, with knowledge, express or implied, of the person or corporation contracting with the City shall render the contract involved voidable by the City Manager or the City Council. (b) The alleged violations of this section shall be matters to be determined either by the Trial Board in the case of employees who have the right to appeal to the Trial Board, and by the City Council in the case of other employees. (c) The prohibitions of this section shall not apply to the participation by City employees in federally-funded housing programs, to the extent permitted by applicable federal or state law." 11. GIFT TO PUBLIC SERVANT City may terminate this Contract immediately if Consignee has offered, or agreed to confer any benefit upon a City employee or official that the City employee or official is prohibited by law from accepting. For purposes of this section, "benefit" means anything reasonably regarded as pecuniary gain or pecuniary advantage, including benefit to any other person in whose welfare the beneficiary has a direct or substantial interest, but does not include a contribution or expenditure made and reported in accordance with law. Notwithstanding any other legal remedies, City may require Consignee to remove any employee of Consignee from the Project who has violated the restrictions of this section or any similar state or federal law, and obtain reimbursement for any expenditures made as a result of the improper offer, agreement to confer, or conferring of a benefit to a City employee or official. 12. NOTICE OF CONTRACT CLAIM This Contract is subject to the provisions of Section 2-86 of the Dallas City Code, as amended, relating to requirements for filing a notice of a breach of contract claim against City. Section 2-86 of the Dallas City Code, as amended, is expressly incorporated by reference and made a part of this Contract as if written word for word in this Contract. Consignee shall comply 4 with the requirements of this ordinance as a precondition of any claim relating to this Contract, in addition to all other requirements in this Contract related to claims and notice of claims. 13. NOTICES Except as otherwise provided in Section 12, any notice, payment, statement, or demand required or permitted to be given under this Contract by either party to the other may be effected by personal delivery in writing or by mail, postage prepaid. Mailed notices shall be addressed to the parties at the addresses appearing below, but each party may change its address by written notice in accordance with this section. Mailed notices shall be deemed communicated as of three (3) days after mailing. If intended for City, to: Stephanie Cooper Purchasing Agent 1500 Marilla Street, Room 3FN Dallas, TX 75201 1f intended for Contractor, to: Matthew C. Decareau Vice President 100 Willow Street North Andover, Massachusetts 01845 14. NONDISCRIMINATION As a condition of this Contract, Consignee covenants that Consignee will take all necessary actions to insure that, in connection with any operations under this Contract, Consignee, its officers, employees and subcontractors, will not discriminate in the treatment or employment of any individual or groups of individuals on the grounds of race, color, religion, national origin, age, sex, or handicap unrelated to job performance, either directly, indirectly or through contractual or other arrangements. Consignee shall also comply with all applicable requirements of the Americans with Disabilities Act, 42 U.S.C.A. §§12101-12213, as amended. In this regard, Consignee shall keep, retain and safeguard all records relating to this Contract or work performed hereunder for a minimum period of three (3) years from final Contract completion, with full access allowed to authorized representatives of City, upon request, for purposes of evaluating compliance with this and other provisions of the Contract. 15. ASSIGNNMENT Consignee shall not sell, assign, transfer or convey this Contract, in whole or in part, without the prior written consent of City's Director. As an express condition of consent to any assignment, Consignee shall remain liable for completion of the Contract work in the event of default by the successor contractor or assignee. 5 16. RIGHT OF REVIEW AND AUDIT City may review any and all of the services performed by Consignee under this Contract. City is granted the right to audit, at City's election, all of Consignee's records and billings relating to the performance of this Contract. Consignee agrees to retain such records for a minimum of three (3) years following completion of this Contract. Any payment, settlement, satisfaction, or release made or provided during the course of performance of this Contract shall be subject to City's rights as may be disclosed by an audit under this section. 17. VENUE The obligations of the parties to this Contract shall be performable in Dallas County, Texas, and if legal action is necessary in connection with or to enforce rights under this Contract, exclusive venue shall lie in Dallas County, Texas. 18. GOVERNING LAW This Contract shall be governed by and construed in accordance with the laws and court decisions of the State of Texas, without regard to conflict of law or choice of law principles of Texas or of any other state. 19. LEGAL CONSTRUCTION In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Contract, and this Contract shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Contract. 20, COUNTERPARTS This Contract may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. If this Contract is executed in counterparts, then it shall become fully executed only as of the execution of the last such counterpart called for by the terms of this Contract to be executed. 21. CAPTIONS The captions to the various clauses of this Contract are for informational purposes only and shall not alter the substance of the terms and conditions of this Contract. 22. SUCCESSORS AND ASSIGNS This Contract shall be binding upon and inure to the benefit of the parties and their respective successors and, except as otherwise provided in this Contract, their assigns. 6 23. ENTIRE AGREEMENT; NO ORAL MODIFICATIONS This Contract (with all referenced Exhibits, attachments, and provisions incorporated by reference) embodies the entire agreement of both parties, superseding all oral or written previous and contemporary agreements between the parties relating to matters set forth in this Contract. Except as otherwise provided elsewhere in this Contract, this Contract cannot be modified without written supplemental agreement executed by both parties. EXECUTED this the.qrday of 201 1, by City, signing by and through its City Manager, duly authorized to execute same by Resolution No. 13-214* , adopted by the City Council on L1, 2013, and by Consignee, acting through its duly authorized officials. APPROVED AS TO FORM: CITY OF DALLAS WARREN M. S. ERNST A. C. GONZALEZ City Attorney Interim City Manager BYBY A"City�Attorney Assista City Manager ATTEST: CONSIGNEE: BY BY , Z9, Ie,n Corporate Secretary President 7 Attachment 1 Insurance Requirements SECTION A. Prior to the approval of this contract by the CITY, CONTRACTOR shall procure, pay for and maintain the following insurance written by companies approved by the State of Texas and acceptable to CITY. The insurance shall be evidenced by delivery to the CITY, at the address shown in REQUIRED PROVISIONS b.(i), certificates of insurance executed by the insurer or its authorized agent stating coverages, limits, expiration dates and compliance with all applicable required provisions. Upon request, the CITY shall be entitled to receive without expense, copies of the policies and all endorsements. CITY HAS NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT OR AGREEMENT UNTIL SUCH CERTIFICATE HAS BEEN DELIVERED TO THE CITY and no officer or employee shall have authority to waive this requirement. SECTION B. The CITY reserves the right to review the insurance requirements of this section during the effective period of the contract and to modify insurance coverages and their limits when deemed necessary and prudent by City's Office of Risk Management based upon economic conditions, recommendation of professional insurance advisors, changes in statutory law, court decisions or other relevant factors. The CONTRACTOR agrees to make any reasonable request for deletion, revision or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either party to the contract). Upon request by CITY, CONTRACTOR shall exercise reasonable efforts to accomplish such changes in policy coverages and shall pay the cost thereof. INSURANCE COVERAGE REQUIRED SECTION C. Subject to CONTRACTORS right to maintain reasonable deductibles, CONTRACTOR shall obtain and maintain in full force and effect for the duration of this contract and any extension hereof, at CONTRACTORS sole expense, insurance coverage in the following type(s) and amounts: 1 . Workers' Compensation with statutory limits; Employers Liability with minimum limits for bodily injury: a) by accident, $100,000 per each accident b) by disease, $100,000 per employee with a per policy aggregate of $500,000. 2. Business Automobile Liability Insurance covering owned, hired, and non-owned vehicles, with a minimum combined bodily injury (including death) and property damage limit of $500,000 per occurrence. 8/28/13 Page 1 of 3 BYZ1 350 Insurance Requirements 3. Commercial General Liability Insurance including, but not limited to, Premises/Operations, Personal & Advertising Injury, Products/Completed Operations, Independent Contractors and Contractual Liability with minimum combined bodily injury (including death) and property damage limits of $500,000 per occurrence, $1,000,000 general aggregate. If this insurance is written on a claims-made form, coverage shall be continuous (by renewal or extended reporting period) for not less than twelve (12) months following completion of the contract and acceptance by the City. Coverage, including any renewals, shall contain the same retroactive date as the original policy applicable to this contract. REQUIRED PROVISIONS CONTRACTOR agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, the following required provisions: a. Name the City of Dallas and its officers, employees and elected representatives as additional insureds to all applicable coverages. b. State that coverage shall not be canceled, nonrenewed or materially changed except after thirty (30) days written notice by certified mail to: (i) Office of Business Development and Procurement, Attention: Rebecca Parrish, Buyer, 1500 Marilla, 317-South, Dallas, Texas 75203 and (ii) Director, Office of Risk Management, 1500 Marilla, 6A-South, Dallas, Texas 75201 . C. Waive subrogation against the City of Dallas, its officers and employees, for bodily injury (including death), property damage or any other loss. d. Provide that the CONTRACTOR'S insurance is primary insurance as respects the CITY, its officers, employees and elected representatives. e. Ensure that all certificates of insurance identify the service or product being provided and name the City department shown in REQUIRED PROVISIONS b.(i) as the Certificate Holder. 8/28/13 Page 2 of 3 BYZ1350 Insurance Requirements SECTION D. (1) Without limiting any of the other obligations or liabilities of the CONTRACTOR, the CONTRACTOR shall require each Subcontractor performing work under the contract, at the Subcontractor's own expense, to maintain during the term of the contract, levels of insurance that are necessary and appropriate for the services being performed, comply with all applicable laws and are consistent with industry standards. The Subcontractor's liability insurance shall name the CONTRACTOR as an additional insured. (2) The CONTRACTOR shall obtain and monitor the certificates of insurance from each Subcontractor. The CONTRACTOR must retain the certificates of insurance for the duration of the contract and shall have the responsibility of enforcing insurance requirements among its subcontractors. The CITY shall be entitled, upon request and without expense, to receive copies of these certificates. SECTION E Approval, disapproval or failure to act by the CITY regarding any insurance supplied by the CONTRACTOR or its subcontractors shall not relieve the CONTRACTOR of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency nor denial of liability by the insurance company exonerate the CONTRACTOR from liability. INDEMNITY The CONTRACTOR agrees to defend, indemnify and hold CITY, its officers, agents and employees, harmless against any and all claims, lawsuits, judgments, costs and expenses for personal injury (including death), property damage or other harm for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by CONTRACTORS breach of any of the terms or provisions of this contract, or by any negligent or strictly liable act or omission of CONTRACTOR, its officers, agents, employees, or subcontractors, in the performance of this contract; except that the indemnity provided for in this paragraph shall not apply to any liability resulting from the sole negligence or fault of CITY, its officers, agents or employees and in the event of joint and concurrent negligence or fault of CONTRACTOR and CITY, responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without waiving any governmental immunity available to the CITY under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this paragraph are solely for the benefit of the parties hereto and are not intended to create or grant any rights, contractual or otherwise, to any other person or entity. 8/28/13 Page 3 of 3 BYZ1 350 Insurance Requirements _ ADMINISTRATIVE ACTION ` ADMINISTRATIVE - ACTION 16 EFFECTIVE=DATE CITY OF DALLAS SEP 0 2 2016 See Administrative Directive 4-5(Sections 8 Through 11j _ k for Additional Guidelines and Routing i.'Ptaoe an"X"in Elie approprfate box;c"omplte and submit this form tat the approve l of ❑ a.Low bid contracts of not more than$70,000 ❑ b.Change orders for low bid contracts:$50,000 or less(may not increase original contract price by more than 25%�- C I7 ❑ c.Professional/Personal/Planning/Other Service contracts:$50,000 or less. i ❑ d.Amendments to non-bid contracts:$50,000 or less,per City Code Sec.2-34 ❑ e.WRR-FM expenditures:$50,000 or less per City Code See.2-790 of the City Code. _ tv ® f.Other(explain on attachment)Extension of time w 2 ABach aJisupporNrig dosumerits rnclud�hg ofd mlarinallon as requked.ApptovaJ shall be obtained bet, servicas are rendered.-. 3, is this:expenditure rela W to a cvnstrttctCan project? YesZ No 4.'Any Admrrfinlsttallve ActlorJ tq this vendoJ ln.fhe last 12 monf( ? (#AOattach eXplatiaton) ❑ Yes ® No &: _ Is Fdnif.1.295 ate'rt# ale of/nierested Fettles rettutr of to cot iply with House Bait 1298 attached.((f y, ® Yes ❑ No a vendorN9me M & K Recovery Group, Inc. (V50000081613) Consignment of 8-liner StibjactDepartment DPD amblin machines Actlonaequesteel' Authorize the extension of agreement BYZ1350 for one year under the same terms and conditions. Contract Term 2/18114 To _2/17/18 Beckgrouricl On 12/11/13, Council authorized a three-year consignment contract, with two one-year renewal options, with M&K Recovery Group, Inc. for the sale of confiscated eight-liner gambling machines via Resolution 13-2144. This contract provides for the sale of confiscated eight-liner gambling machines with 60% retention of the net revenue. DPD is recommending extension of this agreement far one year. FUND DEPT.:: UNIT ACTV OBJ: PROGRAu: ' ENCUMBPANCE VENDOR AMOUNT Funding Project Mo B YZ 1350 Commodity Code Financing;_.. :` Chsnge Order No: Original CWM Nn<: Orip161 ch/AA.: . OdginaJ CR/AAi_ 1o1itlPrenious. Change Arnounf `Total Change Order Percentage Data; ArrrounJ Chane Orders::'. includin' This order 1 13-2144 12/11/13 Revenue $0 $0 0% i M/WBE INFORMATION Istfrrie antl Subcontrai tots use:this seotiiin for toW.brd corittects greater than$50,Ot?0 but test;ittan$70,000: lndreateAmoun(fo; RfrlcnArrierfcan Hfspanlc" Caucasianflema/e OtJterlvlfnoriCy MWBECertificationNumber v Each Grou . $ $ $ $ I jbvq/.A roved as bein in accordanc ,with the 9udget and Cha ter 2 of the Dallas City Code:: _X h_7L)" 1__71 � °p� 0 . e�l� �f By Department DirDATE Approved as to fo by CityAtto ey 6ATE1 a -G 4 By Assistant City Manager DA E Original—City Secretary REV 09/2012 16661 STATE OF TEXAS § SUPPLEMENTAL AGREEMENT NO. I COUNTY OF DALLAS § TO CONTRACT FOR CONSIGNMENT SERVICES THIS SUPPLEMENTAL AGREEMENT NO. I to that certain CONTRACT FOR CONSIGNMENT SERVICES executed by the City Manager under the authority of Resolution No. 13-2144, adopted by the City Council on December 11 2013, ("the Contract"), by and between the CITY OF DALLAS, TEXAS, a Texas municipal corporation, hereinafter called "CITY", and M&K Recovery Group, authorized to conduct business in the State of Texas, whose principal place of business is 9104 Cameron Rd., Austin, TX 78754, hereinafter called Consignee,evidences the following: 1. The term of the Contract is revised as follows: The term of this Contract shall commence on February 18, 2014 and terminate on February 17, 2018, unless sooner terminated in accordance with the provisions of this Contract. All other terms, provisions, conditions, and obligations of the Contract between the CITY and VENDOR shall remain in full force and effect, and said Contract, as same may have been previously amended, and this Supplemental Agreement No. I shall be construed together as a single contractual agreement. EXECUTED this the l � day of , 2016, by CITY, signing by and through its City Manager, duly authorized to a ecute same by Administrative Action No. 16- approved onfT ers��� /(, 2016, and by VENDOR, acting through its duly authorized official. APPROVED AS TO FORM: CITY OF DALLAS CHRISTOPHER D. BOWERS A.C.GONZALEZ Interim City Attorney City Manager BY BY Assistant Ci Attorn Assistant City Manager VENDOR: M&K Recovery Group, Ince— B Decareau Direct -of Business Development Page 1 of 1 R11QUEST FOR COMPETITIVE SEALED PROPOSALS (RFCSp) ,Signature Page, 111structions, General Conditions SOLICITA'FION NUMBER: BYZ135(1 IWCSP Name: Consignment of 8-Liner DUE DATE/TIME: September 18, 2013 Gambling Machines City of Dallas Business Development & Procurement Services 1500 Matilla,Room 3FN, Dallas,Texas 75201 Rebecca Parrish, Rebeeca.parrish@dallascityball.com Solicitation meeting(s) September 5,2013@ 10:00 a.m. Solicitation meeting Tvill be held at 1955 Vilbig,Dallas, TX 75708 The purpose of this solicitation is to seek interested and qualified parties that call provide consigni-nent of 8-Llqer L I .P.Fambling- inachines. Award will be made based on most advantaueous proposal based on score criteria in the 0 specification-,,. The City reserves the right to mvard by method deemed most advantageous to the City. o Specifications and all associated documents may hewiewed and downloaded 13-v submitting a solicitation response, t.he- submitter agrees to the terms and conditions outlined throughout this Request for Competitive Scale-d Proposal -'RFCSP), also referred to as proposal herein. L The undersigned hereby offers to furnish and deliver the goods Or services as specified at the prices and terms there state,d herein and if) strict accordance with the RFCSP and conditions of bidding, all of which are made a part of this offer. After- RFCSP closing date, this offer is not subject to withdrawal without written consent Of the City's'Purchasing Agent A�Eel Uk Date Full I-e gal Company Namc 1 100 Willow St. North Andover, NNIA 01845 (Address, City, State and ZIP Coded Note: No Post Office Box X I elephone No. F ax No. critail address I Authorized Signature Print Name Title Note: DALLAS CITY CILARTER, CHAPTER XXII, OR SEC. 11, FINANCLAL INTEREST OF EIMPLO OFFICER PROHIBITED, (a) No officer or employee shall have any financial interest, direct or indirect, in any contract with the city, or be financially interested, directly or indirectly, in [fie sale to the city 'of any land, materials, supplies, or services,except on behalf of the city asanofficer orernployee. Cooperative Purchasing: Should offierpyoverni-nental entities decide to participate in this contract,would you,the vendor,agree that -111 ton's,conditions,specifications,and pricing would apply? Yes —X No If you checked"yes,"the following willapply: Governmental entities utilizing Inter-Governmental Contracts with tile City of Dallaswill be ligible, but not obli gated, to purchase rnaterial/services under this contract(s) awarded as a result of this solicitation. All purchases by governmental entities other than the City of Dallas will be billed directly to that governmental entity and paid by that governmental entity. Tile City of Dallas will not be responsible for another government-al enliWs debts. Bach governmental entity rna-terial/services as needed. ovety will order its own Stephanie Cooper Rev.6--8/0,113 Page I tar Doc#J31)PS-FR 1,4-'114 D CITY OF DALLAS BUSINESS INFORMATION FORM Complete Legal Name of Business M&K Recovery Group, Inc. 100 Willow st� North Andover. MA 01845 Form of Business Entity(check one) Texas corporation Texas non-profit corporation (X ) Out-of-State corporation Texas professional corporation Massachusetts–state of incorporation (check one) X profit — non-profit Texas general partnership Texas limited partnership Out-of-State partnership state where partnership is legally registered Individual doing business as Texas limited liability company Other (describe) List the Bill name of each Officer of the Company: PRESIDENT: Donald J. Decareau VICE PRESIDENT: Matthew C. Decareau SECRETARY: Matthew Q. Decareau TREASURER: Matthew C. Decareau Who is legally authorized to sign and execute contracts? Matthew Q. Decareau Sean Cockburn Who, if anyone, is required to witness contract signatures? .. David Golla Rev.I --04/20110 DoOMPS-FRVI-140 CITY OF DALLAS ETHNIC WORKFORCE COMPOSITION REPORT Note.-Phase Use the Tali button.mouse or arrows to move from one section to the next Please DO NVT uve the"Gntee Company name: M&K recovery Group, Inc. — ------- -- ------.�� Address. 9104 Cameron Fid. Austin, TX 78754 Bid #: Telephone Number*- 512 - 830 - 8300 Ext. Email Address: Austin l mkrecoverygroup.corn E Please complete the followina sections based on the ethnic composition of the (location) entity which is listed on the signature page, form BDPS-FRM-116. Employee Total NO. Whilt SlackHispanic Cather Classification Employees ? flate CrF.. "F lYt F '' 6k f 1 f Administrative/ Manzaerxat n t 1-rotessional ; € Technical I Office/Clerical Skilled Semiskilled Unskilled [ Seasonal Totals: a, Director of Business Development Off- ' r' fore Title , s het C. De areae 9/23/2013 Typed or Printer!Name Date Rev. 2—614112 Doc#BDPS-FBM-204 Purchasing Agem Proposer Instructions Failure to fi011otfl these instructions may result in your Proposal being declared non-responsive and not considered. Proposal CHECKLIST, (Document,-, to tie�su`bmift­ ed in response to this RFCSP) Proposal: Including RFCSP SIGNATURE PAGE SEALED PROPOSAL RESPONSE(Proposal and Pricing) Proposal checklist—additional documents apply to proposals of$250,000 and greater: the following documents shall be I StIhMiRM With the J)FOI)OS511 reSPOPSC or upon request. Business Int lusiot-t and Development Affidavit(BDPS-FRM-203) Eflinic Workforce Composition Report (BDPS-FR-'L\4-204) RFCSP_RFQ Contraetor*s Affidavit History of M/WBE Utilization Forin (BDPS-FRM-.105) 11 R PCSP/RFQ Contractor's Affidavit Tvr)e of Work by Ptirne and Subconsultant Form (BDIIS-FRM-206) Affirmative Action Plan L To be considered responsive, a hard copy solicitation response. and any other method as described in the specification. shall be subt-nitted in a sealed package, The solicitation response may= be submitted in person or by mail to the addressed listed above. All solicitation responses shall be received at the address listed abov,c no later than the due date and time indicated in the -S,01icitation, late submissions will not be accepted, ? All questions, it)terpretat ions or clarifications desired Must be requested in writing. Orat statement(s) regard-inc; the meaning or intent of the contents of this solicitation by any person other than the listed Buyer Marc unauthorize'-i and invalid. All clarific d - ations and answers to questions will be address iiiv,.-riting and posted on line as an addendum to the solicitation and therefore, interested parties should frequently check the solicitation website, to ensure that the latest and complete information hasbeen obtained before submitting a responsc. Questions related to --specifications or RFCSP sheet shall be directed to the buyer listed on the solicitation. Questilons should be submitted in writing no later than the day following the pre-solicitation conference uple-ss other vise stated in thea specifications. 4. All request,,; for exceptions to the specifications and/or insurance requirements shall be addressed in writin,Y (e-mail), unless otherwise stated in the specifications, to the buyer listed on the solicitation no later than the day following the pre-solicitation conference. Any chariges'to the specifications shall be addressed in writing in form of an addendum, and will be posted online for all interested parties to view, Arty, changes or exceptions submitted without prior written approval from the listed buyer may cause the proposal to be non- responsive, unless the bidder withdraws the exception,,;. This section does not apply to alternative solicitation response submittals; if an alternative solicitation response is being submitted, the responder shall mark the response "alternative solicitation respanse". Responses not marked accordingly and are intended as such, may be considered non-responsive., 5. Except for the pre-solicitation conference, there is to be no contact between bidders and user departments during the RFCSP process and evaluation process without prior approval from the listed buyer. 6, The City's procurement system is designed to send. out solicitation email notif .1catioris to parties registered tinder commodity codc(s) used for each respective procurement; in order to receive such notification, R 6- a9l13 Page:2 of 7 Dric#B DPS-F7RM-114 interested parties must register for all commodity codes which closest and most accurately represent the type of business offered. Commodity code profiles may be update at any time, Note: If an addendum (a change to the solicitation specifications) is published that notes changes to the 0 solicitation and a response has already been submitted, the respondent must access their solicitation response, -modify and re-submitted so the chanc-'es can take effect. Vny submitted sealed proposal may be updated prior to the closing date/time. If the response, is not modified and re-submitted, the solicitation response will contain intx)rrect information and could be considered non-responsive. 7. FM electronic solicitation responses to be considered successfully submitted, all lines must be completed. A "No Bid"must be entered on each line not being bid, Do not leave any line blank or the solicitation response Will not be successfully accepted, 8 If aSSiStL 1 InCe With submitting an.elec=tronic response is needed. 0 , y u may contact Lisa Alonzo 214-243-2131, 9. It is !he bidder's sole responsibility to review the list of current Board and Commission members to determin-e employment or business relationship conflicts; a c0inplete listing is available at City Secretary's web page at111 d _-qc tyhalLconn, 10. Before submitting a solicitation response, please check all lines carefully to ensure proper and accurate information submittal; Scaled proposals cannot be nnodified or corrected after the bid closing;dateitime, 11 1. Protest procedures - Bidders are advised that protests of specifications, terms, conditions., or any other aspect of this solicitation, must be made prior to the bid due date. Protest of specifications and solicitation terms and conditions made after the due date and tinewill not be considered by the Purchasing Agent, Protest of award must be Inadle immediately, and in no event later than five (5) days after the aggrieved party knows, or should have known, the facts -wing rise thereto, All protests must include the information:I. 17� C, test 9 The name, address and telephone number of the protestor. 2. The signatui -e of the protestor or protestor's representative, 1 The solicitation or contract number. 4, A detailed statement of the le0al and/or factual ground of the protest, 0 and/or 5- The form of relieffresult requested. 12. Protests shall mailed to Business Development& Procurement Services, 1500 Marilla St., Room 3FN1. Dallas,TX`75201. Attention: the listed Buyer. Award will be made in the best interest of the City. 13, All formal bids, not proposals, are opened in a public setting; the public bid opening can be viewed via internet at M briet'i - s-c" 1��L —Iftngs-ag d g index L;deQ- _ytg_.yj qdf . Persons may also attend the public bid opening at Dallas City Hall, f5OO )barilla St. Express Business Center. Room 132115. City of Dallas 6General Terns Ternis'and Conditions For Request for Competitive Scaled Proposals (RFCSP) IT Ask, . 1 TS -.S°19",13 Page 3 of 7 DocaiBMIS-R,M-13,; (iA) THE GENERAL WARRANTY REQUIREMENTS APPLY TO THE CITY'S PROCUREMENT OF GOODS UNDER THIS RFCSP. FOR PURPOSES OF '1T-1E GENERAL WAR.RAN'ry REQUIREMENTS, HE TERM "GOODS" MEANS ANY EQUIPMENT, MACHINES, TOOLS, VEHIT I ES, HARDWARE, SUPPLIES, COMPONENT PARTS OR OTHER TANGIBLE PERSONAL. PROPERTY. THE 'TERM "CITY `,PANS THE CITY OF DALLAS,ACTING THROUGH ITS OFFICERS,EMPLOYEES,DEPARTMENTS.AGENCIES,BOARDS, COMMISSIONS,COMMITTEES AND INSTRU:h'IENTALIIIES, (H) BY tiL:BMII"PING:A PROPOSAL,THF BIDDER AWARDED THIS CONTRACT UNDER THIS RFC-SP(AL-SO REE'ERRED TO HEREIN AS "VENDOR"), I URNISI II S'IT-IE FOLLOWING WARRANTY AS PROVIDED BELOW: f 1) VENDOR NVARRANI'S T'HA`I'THE GOODS DELIVERED ARE 'vI(tL`LY MANUFACTURED, FREE FROM DEFEC'T'S IN MATERIALS AND WORKP i ANSHIP AND CONI'C)R vI IN EVERY RESPECT TO CITY'S SPECIFICATIONS, VENDOR ALSO WARRANTS THAT IF, DURING TIRE;WARI'..'ANTY PERIOD,ALL OR ANY PORTION OF TME GOODS:(A)FAIL FOR ANY REASON;(B)ARE DISCOVERED TO BE NONCONFORMING, OR ARE DEFECTIVE IN MATERIALS OR WORKMANSHIP, VENDOR WILL REPLACE SUCH FAILED, :NONC:ONFORNUNG OR DEFECTIVE GOODS A'I`ILIO COST TO CITY WITHIN THE SAME TIME LIMIT AS THE DELIVERY PERIOD SHALL BEGIN ON 'THF; DATE OF OFFICIAL ACC'EPTAiN(F OF THE GOOKS BY CIT`:, WHICH DATE I5 EITHER THE I STAT 1 A"F1ON DATE OR IN-SERVICE DATEAS.SHO IN ON CITY RECORDS OR THE DATE Or FORMAL ACCEPTANCE ANCE OF THE GOODS IN WRITING BY N AUTHORIZED CITY OFFICIAL,WHICHEVER OCCURIS I=IRS'I',AND ENDS ONE(T)YEAR AFTER R THE )ATE O THE OFFICIAL ACCEPTANCE THIS WARRANTY SMALL FSE. UNCONDITIONAL EXCEPT'HAT IT SHALL NOT:APPLY O OBVIOUS ABUISE,MISUSE OR DA.v1.AGE CAUSED BY C11N. ("2) AS BETWEEN EN A I".ODOR AND CITY,TELE,E_X RESS WARItANT Y GIVEN IN SUBPARAGRAPH(I3)(I)IS IN LIFU OF_xNY OTHER EXPRESS WARRANTIES, SHOULD THIS WARItA-VNF`Y FAIL OF ITS ESSENTIAL PURPOSE,CITY WILL C ON I'IISUE TO HAVE,REC:OORSE UNDER APPLICABLETEXAS LAW,THIS WARRANTY IS INTENDED FOR T1I FXCI USM; OF CITY, TI'S OFFICERS AND EMPL)YIDE-S, AND DOES NOT CREATE ANY WARRANTIES (EXPRESS Olt L'�TI'I.,IED) OR CAUSES OF ACTION IN I{AVOR OR ANY THIRD PARTIES. f ) IF +A M ANUI<A TUREP CSI THE(_;OODS OR OF COMPONENT PARTS OF THE GOODS PPOVIDES A SPECIAL OR 11':I)EI'ENDEN-F W ARR.AN'I Y WillC7H IS I'.NEER TH N THE PERIOD PROVIDED FOR THIS WARRANTY, OR WHICH PROVIDES TERMS 'MORE RAVORABLF:T£)CITY THANTflOSE CONTAINED IN THIS WARRANTY,THE PROVISIONS OFTHIS WARRANTY SHALL NOT BIF 00ONTR ED TO DIM11NISH OR CONFLICT VN'ITII THE SPECIAL OR INDEPEINDENT A',ARRAN-TY GIVEN BY SUCH NI NUFAC TURER. (C) 7FrF'SLJCC'I SSFtf r11r)r)I:1.;,ItY.5L.13.tLIT'1'L "G I1!L`I'ri17't),5 ir„ %I€>>PFf 4'TO GII' 7II7'F'OLLOIIIA(j'IA'I)Is'I1 A'I7`Y WIrH RE'SlI C.`}'TO THE GOODS., I'L<.'.W)OR SHALL I)I'I'I>ND, 74"D IINIFFY AA'I) AI,—, IP,•iIdWI.ESS CITY, ITS OFFICERS, _LGE.Af75 AND L'IVIPIG}7'7:5, FROM ALL SUITS, ACTIONS OR C'L4Lj15 O1' ANY (11 RACTER, TYPE OR DIESCRPT1O;A' BROUGHT OR MADE ON ACCOLsA'T OF il.l4''Y PERSOAi11 1711"R)' (18"CLLTVNG DEATH), PROPERTY I)MIAGL OR OTHER ILTliW FOR WHICH ImC,'OTIERY OF DA31AGES IS SOUGHT,SC'Ff"E'RED BY A ArY P7'I11SON OR PFRSOA'S,AlUSING OUT OF OR OC'C`ASIO;AF'D FY A i`I'BRI i CH O A I'IF'.ARIZ tNT t', E PR&� S OR 141P£II<I),AS TO TIAs GOODS OR THE FAULT SUBC"O4'TRACTORS, 114' 'PITT. PIsRFOR,41Ab'CE OF THE CO14TRACT' PU'RCHISIE ORT)ER OR PRICES _ GRFEA-fI*NT- PROVIDED, HCaWE E`rC, THAT THIS IYT370,1A'ITY SHALL NOT APPY TO A,,VY PERSONAL INJL>RI LYC°LUDr;'�CE (Ij'CI:L{"I)1, £JI ATH), PROPERTY IJ:A-VIAG ' OR 07.111s1t 17 R11 CAUSED SOLELY BY THE A''C'C I IGF.i'7 C SI,:Iif517SI:OR ABI'i OF THE GOODS BY CITY,OR CA USED SOLELI-B .F:NY., f,,GLIGIEA'7t1C.'T OR UAIISSION'OF C171"UNRELATED TO TIll':LSE OF THF GOODS. .IN THE, EVI,"VT()14VOLV4T OR CONCURRING RESPONSIBILITY Or, VENI)GR AND C:I'TY RESPON' 113tLITY AND I14'DLiI'LYIT`)', IF ANY SHALL BE Al'PORIVONED CO.JVP.4RITIII'LY'L1` ACCORIJANC'i_' IVITH THE I..�WS CII`- 711E S`TAT[I:OF TERAS, WITHOUT,HO6 EW,'R, II'AIITLA'G ANY GOI'I'r2NHE� ,VT•AL LILAf1JV1TY AVAILABLE TO THE CITY UNDER 'fEk!S 1 4'1 . 'PHIS PROVISION.YHAII i'4OI 177E COLS 5TRL,P'D FOIZ THFI II[",V TIT OF A,\Y'f'H1]21)PAIITI NON DDI,,. II' CREATE OR CGIsaI;AT ANY RIGHT OR CALWE OF AC'TIO:V 12V FAVOR OF ANY THIRD PARTY AGAINST C17-Y OR 1,TAI)OR. THIS 17COI757Ct C 7377; 'G SOLI'I Y INTENI)ED TO PROVIDE FOR IS�DI ilEVIFICATION OF CITY IRO31 LIABILITY FOR DAJ11AGE TO TH71H)PI RSO S OR PROPFRTY.A,S SET FORTH I'4'THIS PARAGRAPH. R_ I"IREME,' I'S: BY Sl IBMIITI'IG A PROPOSAL.,BIDDER AGREES TO SUPPLY-1.0 THE CITY OF DALLAS("CITY')'FHF GOODS OR SERVICES DESCRIBED IN THIS RFCSP IN AC'CORDANC'I' WITH THESE GENERAL CONDITION'S rNI) CIT'Y"S SPECIFICATIONS AS ATTACHED TO,`ANIS MADE A PART OF THIS RI'CSP.AND ANY A RLI'TT N ADDENDUTAS TO T141S RFCSP ISSUED BY CITY PRIOR TO 'FILE DATE OF PROPOSAL OPENING, L RE{..I EYP OF PROPOSALS: ALL PROPOSALS RESPONDING TO THIS RF(.-"-SP MUST BE RECEIVED AND LOGGED-IN IN THE BUSINESS DEVELOPMENT AND PROCUREM.i NT SERVICES OFFICE IN ROOM 3/FINORTH, 1500 MARILLA, DALLAS,TEXAS 75201 BY TI IE TIME AND DAPI:SPECIFIED IN THIS RFCSI'. 3, PROPOSAI, AWARD) AWARD WILL BE M1AI)I" TO THE MOST ADVANTAGEOUS BIDDF_R/PROPOSER(S), CITY RESERVES THE RIGHT To REJECTANY OR ALL PROPOSALS AND TO WAIVE MINOR IRREGULARITIES OR DISCREPANCIES IN ANY PROPOSAL;AS MAY BE IN THE BEST INTEREST OF CITY. LATE PROPOSALS DO NOT COMPLY WITH CONDITION #2 AND WILL NOT BE ACCEPTED. 4. SIGNATURE:RE: ALL PROPOSALS MI IST ISE SIGNED IN INK,13Y HAND,IN TTIE 8PAC E MAR-KED"AUTIIORILED SIGNATURE.- i, CO'vI LFCT C)F INTI'k RIfST. IN ACCORDANCE WITH CHAPTER X II SECTION 11 OF THE CHARTER OF THE CITY OF DALLAS, NO OFFICER OR EMPLOYER OF CITY SHALL HAVE A FINANCIAL INTEREST, DIRECT'OR INDIRECT, IN ANY CONTRACT WITH THE CITY 012 BE FINANCIALLY INTERESTED, DIRECTLY OR 1NDIREC711N. IN THE SALE TO CITY OF ANY LANNI), MATERIALS, SUPPLIES OR SERVICE& Rs>v,6-B IVV0 Page 4 of 7 6. Pltol-O'SAI, SUBMbSION: '�VHEN RESPONDING TO A PROPOSAL, IT IS THE BIDD R'S I ESPONSIBILITY TO IDENTIFYTjjj-- PROPOSAL St'113NIISSION BY PLAINLY INDICATING THE PROPOSAL NUMBER AND PROPOSAL OPENING DATE ON T14E FROM]'OF A SFALED EilWFLOPE."NO BIDS"SHOULD13E RETURNED BY THE PROPOSAL OPENING DATE WITH"No BID"INDICATED ON THE ENV E-4,0111-11 IN ADDITION TO THE PROPOSAL NUMBER AND PROPOSAL OPENING DATE.CITY ASSUMES NO RESPONSIBILITY FOR PROPOSALS NOTPROCESSED DUI Tib THE FAILURE OF THE BIDDER TO IDENTIFY THE ENVELOPE AS A PROPOSAL RESPONSE, 7, FfRN-1 PRIC[7,S�� UNLE-." OTHERWISE STATED IN CITY'S SPEC.IFICATIONS, ALI, PRICES kVILL BE CONSIDERED FIRM FOR ACCEPTANCE WITHIN ONE HUNDRED' FIF`[-Y (ISCI; FE) DAYS AF. R PROPOSAL OPENING. THESE PRICES MAYBEEXTENDED BY WRITTEN AGREEMENT OF THE BIDDER, S. S L,B_5 Tf T I I ADONS- ANY CATALOG OR MANUFAC11-)REWS REFERENCE IN 'TTIIS RFCSPIS DESCRIPTIVE, BUT NOT RE-STRICTIV`F, AND IS I'ISE[) ONLY TO INDICATE TYW PE AND GRADE', UNLESS THE SPECIFICATIONS STATF, SUIDSTITt-!TIONS.-- IF Tfirz SSI ECIFICATIONS ARE SILENT OR ALLOSUBSTITUTIONS, OTHER ITEMS OF SIMILAR AND EQUAL QUALITY WILL BE CONSIDERED PROVIDED THE BIDDER STXIT-S IN THE PROPOSAL EXACTLY WHAT THE BIDDER INTENDS TO Ft RNISI-1,4 (YFHERWISETHE BIDDER SHALL BE REQUIREDTO FURNISH THE ITEMS AS SPECIFIED IN THIS RFCSP, 9- VII-1110DOI' AWARI). PRICES S HOUL )-B EITEiMl ZE 1)AS RFQ U-STET) I NN THIS CITY RESERVES THE R!G HT TO AW A P D BY LINE ITEM , BY GROUP. IN ITS ENTIR1-7Y, OR 13Y METHOD DEEMED MOST ADVANTAGEOUS TO THE CITY, UNLESS OTHERWISE SPECIFICALLY STATED INTHL-,SPECIFICATIONS. THE ClPf SHALL BE THE FINAL AUTHORITY AS TO THE METHOD OF AWARD. W, DFLIVERY TERMS-, UNLESS OTHERWISE STATED IN THE 4flECIFlCA7I`ONS. A,t-'- GOODS DELIVERED UNDER A CONTRACT WAR DE D TI I RO UC I I' 1-11 S RFC S 11 SH ALL BF,,CON SI DE R ED AS FOB DALLAS DE LI VE R Y SITE OR ADDRESS. DISCREIINNCIES AND ERRORS IN C;VSE OP A DISCREPANCY BETWEEN THE UNIT PRICE AND THE FXTENDEDTOTAL FOR rV BID ITE110,THE FIGURE T14AT IS MOSTADVANTAGEOUS TO THE CITY WILL BE TAKEN, PROVIDED THE OVERALL, RESULTS OF BIDDIN'61 ARE NOT CHANGED. A PROPOSAL THAT HAS BEEN OPLIN1,13 MAY NOT BE CHANGED FOR THE PURPOSE OF CORRECTING AN ERROR IN THE BID PRICE, A -PT,1LBILITY: CITY IS,THE FINAL KIDGE OF PRODUCT ACCEPTABILITY FOR GOODS OR SERVICES OLIOTED UNDER THIS CCE J..c R-E RESERVES CITY RESERVES THE RIGHT TO RE?VIOVE A COMPANY FROM ANY VENDOR OR COMMODITY LIST FOR (1) CONTINUED FAIL -UR1TO RESPONDTO RFCSI's,(2)FAil-URETO DELIVER GOODS OR SERVICES WITHIN THE PROMISED TIME, 7 DELIVER YOF SUBS-EANDARD GOODS OR SERVICE 7 �,S�OR(4)1ALLURE TO PROVIDE GOODS OR SERVICES AT THE SUBMITTEI)BID 4. (JPFN RECORDS: TRADE,SECRETS AND CONFIDENTIAL INFOR'NIATION CONTAINED IN A PROPOSAL ARE NOT OPEN TO PUBLK INSPEC11ON (BID PRICING, HOWEWER, 1S NOT CONSIDEREM TO BE CO NTFIDENTIAL UNDER ANY CIRCUMSTANCES). BIDDER'S WHO INUvE INFORNMATION IN. A PR6POS-ALTHAT IS LEGALLY PROTECTED AS TRADE SECRET OR CONFIDENTIAL NIUST CLEARL) INDICATE WHAT INFORMATION CONS111`UT ES A TRADE SECRET OR CONFIDENTIAL INNFORNLkIlON BY MARKING THAT PART OF THE PROPOSAL "TRAD' SEC:RE"I" OR "CONFIDENTIA L" A] THE, APPROPRIAll, PLACE, CITY WILL NOT BF' RESPON'SIBI-L FOR ANY F'J PUBLIC DISCLOSURE OliE TRADESECRET OR CONFIDENTIAL INFORMATION IF IT IS NOT E- MARKD- AS PR()VIDED ABOVE,114-A REM EST IS MADE UNDERTHETEX-A.S OPEN RECORDS AC7TO INSPECT fNFOR,\4ATION-, Dr,SIGNATED AS TRADE. SECRET OR CONFIDENTIAL IN A PROPOSAL, THE BIDDER SHALL, UPON REQUEST, IMMEDIATELY FuRNISII SUFFICIENTWRITTEN REASONS AND INFORMATION AS TO WHY THE iNFORMATION DESIGNATED AS A TRADE SECRETOR CONFIDENTIAl SHOULD BE I'll QTECTED FROM DISCLOSURE, IN ORDER FOR THF CITY ATTORNEYTO PRESF�NT THE MATITR I'0 THE 11"I"IT)RNEY GENERAL oFTI-XAS FOR FINAL DETERMINATION. -`L THE -IONS OFTHE PARTIES UNDER A CONTRACT AWARDED THROUGH THIS RFCSf` ARE PERFOWMED IN LE-N—t - OBLIGAJ DALLAS COUNTY, TEXAS, AND IF LEGAL A(--,'I'fON IS NECESSARYTO ENFORCE SAME, EXCLUSIVE VENUIT, SHALL BE WITHIN DALLAS COUNTY,ll'i'.KAS. 16. GOVERNING LAW, ALL SEALED PROPOSALS SUBIMITTEI) IN RESPONSE TO THIS RFCSP AND ANY RESULTING CONTRACT ALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE CHARTER AND ORDINANCES OF THE CITY OF DALLAS AND THE LAWS AND COURT"DECISIONS OF THE STATE OF TEXAS, 17. DELtVFRIE-S- DE-LIVERIES WILL BEMADE ONLY BY Ai THORIZA'1`10N OF THE CITY'S PURCHASING AGENT OR A(Y1110RIZED DESIGNEE, AS REQUIRED AND ORDERED BY CITY. SUPPLIER 1PPLIER MUST RECORD FOR EACH ORDER RECEIVEDTHE FOLLOWING INM FORATION: CFFY�S DEPART 'N' OR DIVISION, EMPLOYEE'S NMME, PHONE NUMBER, DELIVERY,11,13311JANU ADDRESS, AGENCY NUMBER. AND REQUISITION NUMBER INFORNMATfON IN ORDER TO BILL THE PROPER CITY DEPARTMENT AT THAT DES[GNI,kY'Er) ADDRESS. BIDDER MUST OBTAIN '1'I-IE CJTY EMPLOYEF'S SIGNATURE AND CITY EMPLOY E,,E NUMBER ON DEL IVERY1, ALE.S TICKETS WHEN MERCHANDISE IS PICKED UP OR DELIVERED AND MAY REQUIRE EMPLOYEE IDENTIFICATION CARD OR DRIVER'S LICENSE,BIDDERS SHALL STATE THE DEI IVERY DATE ON ALLORDERS. IS RN-S—PE(-:TlQr��- BIDDER WARRANTS THAT ALI.DELIVERIES UNDERTHIS RFCSP WILL BE OF THE TYPE,AND QUALITY SPECIFIED. CITY MAY REJECT OR REFUSE ANY DELIVERY WHICH FALLS BELOW T14E QUALITY REQUIRED IN THE SPECIFICATIONS AND CITY SHALL NOT 13E FfFLDT0 HAVE ACCEPTED ANY DELIVERY UNTIL AFTER iF HAS MADE AN INSPECTION OF SAME AND HAS HAD AN OPPORTUNITY TO EXERCISE THIS RIGHT OF REJECTION. 19, TRANSP`ORTAllON LARGL-S, BIDDER SHALL BE RESPONSIBLE FOR ALL CHARGES WHICH RELATE TO THE DELIVERY OF THE GOODS TO CITY'S PLACE OF BUSINESS AND FOR. THE RETURN TO BIDDER OF ANY GOODS REJECTED AS BEINO NONCONFORMING,UNDER THE SPECIFICATIONS, 20, UNEI'PRICEIES'll kl*EoDoIJANTI�FY-. IF'1'1:1[SRI--'CSPC,',,*%LLSFOIZI,INFITFN;IU�NI'I'PRi('EBII)S,I-I-IEQUAN-1-ITIESI)ESCRIBEI)IN - LkI—Urfivi Rev-,6-8-i 19113 Pagc 5 of 7 Doe,M)PS-FRM-134 EACH LINEEIFN4 ARE BASED UPONTML BEST AVAILABLE INFORMATION,THECFFY'S BUST ESTIMATE OF ANTICIPATED NEEDS AND ORDERS. 'PHIS ESTIMATE ISNOTA E; OUARANTETHE QUANTITIES ACTUALLY ORDERED MAY BE MORE,RE OR LESS THAN ESTIMATED. PAYMENT UNDER THE CONTRACT WILL BE BASED SOLELY ON THE UNIT PRICE OR PRICES QUOTED FOR THE ACTUAL NUMBER OF LINE ITEM UNITS PROPERLY PERFORMED OR DELIVERED UNDERTHE CONTRACT,AND NO EXTRA COSTS OR CLAIMS FOR EXTRA COSTS BEYOND THE BID UNIT PRICE WILL BE ALLOWED, ALL REASONABLE COSTS OF LABOR. MATERIALS AND OTHER REASONABLE AND NECESSARY COSTS,INCLUDING REASONABLE OVERHEAD AND PROFIT,REQUIRED TO SUPPLY THE GOODS OR PERFORM THE PARTICULAR QUANTITIES OF WORK REQUIRED IN THE SPECIFICATIONS SHALL BE INCLUDED IN THE BID QUOTATION FOR THE LINE ITEMS STATED IN THE PROPOSA—T COSTS JVOTLN"CLUDED OR CALCUL4TE'D LV THL'AlIPLICBLE UNIT 11R[(TS AS BID WILL NOT BE 11AID BY THL CITY, REGARDLESS Or, TILLS L-VTF,N/TION OF 7- - 11fDDF'1? TVIIEV,T11E RTD TVA S'S trAWITTED AAW RE�GARDLESS THAT THOSE COSTS VVERE A CTUALL Y LVCVRkED. 2 1- ISP S: PROPOSERS MUST SUBMIT MATERIAL SAFETY DATA SHEETS WITH THE PROPOSAL FOR ANY HAZARDOUS CHEMICAL QUOTED OR SUPPLIED UNDER THIS RFCSP. 22. Fi-ULLTRETODELIVER: BY SUBMISSION OF A SEALED PROPOSAL. PROPOSER AGREES THAT IF THE PROPOSER IS UNABLE TO M AKE A DELIVERY IAF THE QUANTITIES ORDERED AT THE QUALITY R FQtTIRED UNDER THE SPECIFICATIONS,OR FAIL CURE THE PPOBLI.-Al WITHIN A REASON ABLE LENGTH OF TIME AFTER NOTIFICATION, THEN CITY' SHALL 13E AUTHORIZED TO PURCHASE QUAN'TIT.IIS WHEREVER AVAILABLE, AND PROPOSER %,IA) BE DI BAFOtLD 1;'Nl) R-E-tvIOVE.D FROM ClIA"S V1AN-f)(JR OR C01MMODITY[-!ST. '1 ASSIGNINIENT: BIDDER SHALL NOT ASSIGN, TRANSFER, PLEDGE OR HYPOTHECATE A CONTRACT AWARDED UNDER THIS i,�FCSPIN AA HOLE OR IN PART-W(J-HOU-1-1-III:EXPRESS PRIOR WRI-f-FENt CGINSF.-NIT OF CITY'S PUFRCHASING AGENT,ASSIGNMENT T-111CO OF E NFIRACT, IF APPROVF1-*D By CITY, SHALL NOT RL-1.1I VE BIDDER FRWkI BIDDER'S OBLIGATIONS UNDER THE CONTRACT. APPROVAL BY CITY OF ONE ASSIGNIMENTSHALL NOT(.ON�STI'fti"I'F.'A!'!'RC)-V;AL OF ANY FUTURE ASSIGNMENT OF ,rHE CONTIR.ACT. 24, TL RA4INpVr1ON: CITY MAY TERN41NATE A CONTRACT AWARDED UNDER THIS RFCSP IN WHOLE 011, IN PART FOR CAUSE OR coR T�i"—IERCT f--,,YGIVING -T`E-N (W) DAYS WRITTEN NOTICE THEREOF TO BIDDER- CITY WILL COMPENSATE BIDDER IN ,ur,CORDANCE WITH DTII TERIAS OFTHE CONTRACT FOR ALL CIOODS OR SERVICES PROPERLY DELIVERED AND ACCEPTED PRIOR TO THEEFFE(TFIVE DATE OFSU'1CH NOTKT 25, �'GOOD PAITR I EF )RT: BIDDERS ARFREQI.-;IREDT0 ABIDE"BY-FLFF-1 PROVISIONS OF CITY"S'GOOD FAITH ETFORT PLAN.A COPY �L 11"Arl1i EFFt OF WHICH IS A-1-FACHEI-YCST AND t%4ADE A PART OF THIS RF`CSP, NON-1)LSC7 RIM JNA I()N, IF THE I ROVIS IONS OF CHAPTER I 5B OF THE DALLAS C.FrY CODE ARE APPLICABLE TO—CHIS RFCSP. ANY COMPANY WITH A CITY CONSTRUCTLO;N, CONTRACT OF MORE. THAN S15,000. OR A CITY CONTRACT FOR THE PROCUREMENT'o,-GOODS AND COMPETI'FIXT-A-Y BID SiERVIC'FES OF MORE THAN S50,0W, IS PROHIBITED FROM DISC IUMINATING AGAINST ANY EMPL,OYEE OR APPLICANT FOR EIMPLOYMENT BECAUSE OF RACE, AGE, COLOR. RELIGION, SEX, NNATIONA-L, ORIGIN. OR HANDICAP STATUS, THE BIDDER SHALL 'FAKE AFFIRMATIVE ACTION TO INSURE THAT APPLICANTS ARE EMPLOYED, AND THAT EMPLOYEES ARE TREATED EQUALLY DURING EMPLOYMENT )NqT'IOUT REGARD TO RACE, AGE, COLOR,RELIGION,SERI NATIONAL ORIGIN,SES(JAI-ORIENTATION,OR HANDICAP STATUS.THIS ACTION SHALL INCLUDE, BUT I NLJ&11141) TO H NO BE - I � TE FOLLOWING: f"MPLOYMENT, UPGRADING, DEMOTION, OR TRANSFE--,R; RECRU-1710EN'TOR RECRUITMENT AD,ERTISIN-G. LAYOFF OR TERMINATION: RATES OF PAY OR OTHER FORMS OF CONIPENSATION; AND SEL COTI TION FOR TRAINING, INCLUDING APPRENTICESHIP. ANY PERSON WHO BELIEVES A C'ONTRACTOR HAS VIOLATED ITS 0 1 OBLIGATIONS UN'DER CHAPTER CAW 15B SHOULD ONT� TTIIE CITY MANAGER,CITY OF F)ALLAS, 1500 NIARILi-A STOM S'T'REET, ROOM DALLAS,TEXAS 7 5201, CON717RACr: IN CASE OFA DISCREPANCY BETWEEN THIS Rl--(-'.SP AND THE FORNIAL CONTRAC-F,THE FORMAL CONTRACT WILL C,ONTROL- 2S. ESCI-kLATOR C1 USE., LiNLESS SPECIFICALLY REQUESTED IN THIS RFCSP, THE SUBNFISSION OF ESCALATOR CLAUSES, INDEXES,OR FACTORS WILL.NUI-LIF—YTHF ASSOCIATED PROPOSAL, Z9. TAXES: CITY IS EXEMPT FROM ALL. FEDERAL EXCISE TAXFS AND STATE AND LOCAL SALES AND USE TAXES, PROPOSERS SHOULD THEREFORE NOT INCLUDE THESE TAXES IN THEIR SEALED PROPOSALS. PROPOSERS CONTRACTING WITH CITY CANNOT PSU CITY'S TAX EXEMPTION S'T'ATUS AND NUMBER TO PURCHASE GOODS OR SERVICES RELATED TO THE CONTRACT. IF THIS RFCSP IS FOR C ONSTRUCTION SERVICES OR FACILITY CONSTRUCTION,DISREGARD THIS CONDITION AND RFFERTO THE APPLICABLE CONSTRUCTION SPECIFICATIONS. 30. PAYl%1ENT, INVOICE'S MUST BE SUBN41TTF-D TO THE APPROPRIATE CITY BILLING ADDRESS WITH OR AFTER DELIVERY OF GOODS OR PERFORMANCE OF SERVICES- ALL CONDITIONS PREVIOUSLY STATED REGARDING INSPECTFION AND DELIVERY MUST BE MET IN ORDER FOR PAYMENT TO BE MADE, NO CONTRACTOR OF THE CITY SHALL BE ENTITLED TO INTEREST ON ANY LATE PAYMENT CAUSED BY ANY CLAIM OR DISPUTE,OR AS A RESULT OF THE WITHHOLDING OF MONEY THE CITY HAS A LEGAL.RIGHT OR OBLIGATIONTO WITHHOLD UNDER THE CONTRACT OR STATE LAW. -IL NVARRANTIEN.- BY SUBMITTING A SEALED PROPOSAL, THE PROPOSER AGREES TO COMPLY W111-f ']'HE CITY'S GENERAL WARRANTY REQUIREMENTS FOR GOODS PROCUREMENTS OR OTHER APPLICABLE CITY WARRANTY REQUIREMENTS FOR GOODS OR SERVICES AS DESIGNATED IN THIS RFCSP OR THE FORMAL CONTRACT. 5?. TAXPAYER IDENTIFICATION: A BIDDERTHAT D( ES NOT HAVE A CURRENT W-9"REQUEST FOR TAXPAYER IDENTIFICATION ANN) Cf--'.RTIFJCA'FION" FORINI ON' FILE, WITH CITY WILL BE REQUIRED TO PROVIDE SUCH PRIOR TO AWARD OF ANY CITY CONTRACT, 3 3, DISOUALIFICAXION OVBJDDER:BIDDERS MAY BEDISOIJALIFIED AND THEIR PROPOSALS NOT CONSIDERED FOR ANY OF THE FOLLOWING REASONS-. Rc v.6-8/191/13 Puge 6 of 7 Doc?0EMPS.FRNI-!34 COLLUSION AttIONG BIDDERS 13IL1DER S HISTORY OF FANG FRf,'QI'ENT, F�CESSIVE, AND I+ ERI`ILESS OR FRAUDULENT CLAINIS AGAINIST THE CITY, Olt AGAI°_NST OT HER C'ON 1`RACTORS ON A CITY�¢ PROJECTBI€�DF:R S ARREARAGES OR,DLFAIIL I'ON A:1 EXISTIN6 OR PPI ti'IOUS C'ONT"RACT WITH THE CITY IDDIJCS LACK OF I IiNANCIAL SI'ABILITY .AS REVFALED BY FINANCIAL STATEINIENT, IvXPERIENCE OR EQUIPMENT, JU;~STIONNAIRE& REFERENCE'S, BANKRUPTCY OR RELATED CONDITIONS BIDDER'S F'ENDIN(i Pi Ola"i'S wHicH,Ixti TLTT 3( t:},:r�fiE v"C`CiP E�I'I'1,�tr1LL I'Iit 4l;v"I i�R I II"I31;R"1'FIEC`CI�IYLE'IIf}N OF ADeft TICiNAL.L�`OR II _W RDED ANY FACTORS C I)`SCF?RAIINCx T`HI BIDDER'S QUANTITY OR QU I-11-Y OF THE WORK T"C?BE PER:FOR:NOED OR OTHE FACTORS AS DEFAIFII,APPROPRIATI 13Y TI US F F'C:SP_ 34 CC N7E.-k .i'L'4'I i`EF CITY S 1 xF14' DURING THE RFCSP PROCF;,SS, BIDDERS SHALL et}T"Cf)NTAC I`AvY CITY STAFF LkC EYT'F'Ht)SE DESIGNATED IN THE TEXT OFTHIS RF SP OR IN SUBSEQUENIT ftDDENDUMS OR CORRESPONDENCE. ANY QUESTIONS OR € O CI',RNS SHOULD LD B :ADDRESSED IN `_'RIT WG O CIT°,'S PURCHASING AC PINT OR DESIGNEE, 1500 MARILLA, ROOM L ", C}RTr1, DALLAS, TUAS�`.i 7520-L NON-CO IPLIAI,C('; WITH THIS PROVISION ItiIAY RBSUf:F IN REJE4 T'It)N C)F THF. SL.r1LET.? i't CIPOSAL.. OL,BET- CIT 'MAY,AT ITS OP IOM OFrSE i`A Y A%101 J IrT;S DEE AND PAYABLE UNDER A C'ONTRAC'T ANV RDED UNDER THIS €tFCSP A'G INST �;,,`Y DEBT(INCLUDING TAXES)LAWFULLY DUE TO CITY FROM A VENDOR, REGARDLESS OF WHETHER THE ArNIOUNd DUE ARISES PURSUANT TO THE TERMS OF THE C:ON R C71 OR OTHERNVTSE AND REGYARI IT. ,SS OF WHFITITR.OR NOT "€ITLDEB-I'DU%,?OCITY HAS BEEN REDUCED TO JUDGMENT Iii ,.CO RT. 16. NIODI L(F TIONS TI41S I-F`C:SF CAN ONLY BE. M(:)DIILL ED OR RE-VISIED By ��RIT ll-N ADDENDUM PREPARED BY C;€'I:`t' ANI") iS1_ t} C3R 1?I T '€I3t. }I,}} B CITY S B3 JSI ESS Ftb 4,lwF' EN AND PROC URp,11'�IT'DIF` 4E;I�1'ICI S I}I '. F l'�tF? t}Ix i., MODIFICATIONS'�T IO S SHALL NOT BE PEII.NMI I'ED AND ARE NOT .t E HORIZL.D. - PRf3PI I t ClIt1T's € tI3.I RI 'I"E3 C S!;Ci 1 4"a BID tIt �D I slt2, F BOD SFC 1 i?I€ ISrZF()UI I D THE PC)Id SCI r1 Bit) IsCiNE}, OR I I 1_S E<ID ItF,SP€"\SSI= Financials Using the historical sales data, the current market conditions, and the City of Dallas' requirements for no complete unit sold within the State of Texas. M&K Recovery Group proposes a tiered commission plan on all sales REQUIRING A STORAGE TRAILER(S) as follows: Trailer Activity M&K Commission City Commission Stored for 1-45 days 40% 60% Stored for 46-90 days 50% 50% Stored for 91-120 days 60% 40% Stored for more than 121 days 70% 30% We believe that this approach insures that the burden of the storage costs is shared between the City of Dallas and M&K. While the city will never be billed for the storage trailers; there will be a benefit to the city with higher percentages of the sale price for continuing to utilize this program. This percentage will be used no matter if the machine is being sold complete, for parts, or for recycle. Recycled commissions will be split after all associated costs for environmentally responsible recycling. Knowing that other agencies may utilize this agreement as well, but NOT REQUIRING A STORAGE TRAILER(S) process currently being utilized in Dallas; M&K proposes a tiered commission plan as follows: Sales Method M&K Commission City Commission Sold as Whole 35% 65% Sold as Parts 45% 55% Recycled* 50% 50% *Recycled commissions will be split after all associated costs for environmentally responsible recycling. RECOVERY GROUP M&K Recovery Group Consignment Point of Sale Seized Gambling Machines Presentation RFP—BYZ1350 M&K Recovery Group Presentation RFP-BYZ1350 M&K Recovery Group 9104 Cameron Rd. Austin, TX 78754 M&K Recovery Group would like to thank the City of Dallas and the Dallas Police Department for the opportunity to submit a response to the request for proposal for the sale of seized gambling machines. M & K Recovery Group is an R2—certified, veteran- owned small business providing precious metal refining and e—cycling services with operations in North Andover, Massachusetts and Austin, Texas. Management's refining, recycling and reclamation expertise spans 35 years, and includes experience with both U.S. and European facilities. The company's asset management philosophy is focused on sustainable solutions which protect the environment and maximizing asset recovery. Drawing upon management's three decades of experience in the refining and recycling industry, M&K offers a unique suite of asset recovery services. Core competencies include reverse logistics, IT asset and e-waste disposition,remarketing, recycling, precious metals refining, and data destruction. Our flexible solutions leverage technology, processes, and customized programs to provide services focused upon delivering exceptional results. Product knowledge and processing expertise combined with the broadest spectrum of in-house recycling capabilities, including state-of-the-art chemical refining, shredding, and testing, allow us to maximize your ROI. Environmental stewardship is the foundation of M&K's asset management and recycling program. Our web-based process controls system, AssetTrak, offers comprehensive tracking and downstream reporting, ensuring our partners environmental compliance and final disposition of all materials remarketed, recycled, or refined. This auditable inventory management program provides complete visibility of every serialized asset and scrap commodity as it moves through each secure phase of processing. These compliance reports document that your product has been recycled and accounted for, indemnifying customer's against regulatory liability for improper disposal. Please let us know if you have any questions about our proposal. We look forward to working closely with the City. Sincerely, Sean D. Cockburn Business Development Manager-Austin, TX Page 2 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Introduction As jurisdictions within the State of Texas prosecute illegal gambling cases, more and more run into the problem of what to do with seized gambling machine machines. The devices take large amounts of storage space, contain environmental hazards that must be managed if the machines are destroyed, and require special safeguards for resale to prevent reentry onto the same market. Eventually, jurisdictions can run out of room or become inundated with too many games, leaving them unable to seize anymore. Additionally, the storage and destruction fees use money that could be spent on other projects, and the processing consumes valuable personnel time. Over the last four years, Sean Cockburn has worked closely with the Dallas Police Department. His knowledge of the program, along with a proven business model to include the sales of gambling machines will provide a seamless transition. We have addressed the concerns of our numerous clients while increasing their revenues. As the City of Dallas looks for effective ways to divest itself of the forfeit games, M&K Recovery Group has a detailed strategy for quickly and profitably consigning the items. M&K Recovery Group sees our contracts as partnerships. Our business centers on an open book approach, and we will always make ourselves available at any level. As you see from our experience and references, we strive to maximize your return while protecting your privacy and freeing up your facilities and personnel to do what you do best. Page 3 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Experience, Background, and Qualifications With more than 30 years of experience, the veteran-owned company has been providing a broad spectrum of in-house reclamation options for manufacturing, government and corporate America. Company Structure Don Decareau President/Owner William Rockett Matthew Decareau Jacqueline Debus Charles Fleming VP-Operations VP-Marketing Controller Recovery Manager David Colla Sean Cockburn Direct—TX Operations Bus Dev.-rX Operations Texas Facility Warehouse/Support Staff Successful and high profit sales require experience, superior customer service, and an efficient product flow. Our recovery solution maximizes client asset recovery with flexible program that fits the needs of the business. Your project will be managed by Sean Cockburn, Business Development Manager-Austin. His experience,plus having one point of contact for all your needs will facilitate a long lasting relationship between our businesses. M&K Recovery Group currently operates a successful eBay account with over 10,000 feedbacks, with a positive rating of 99.4%. Page 4 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Over the years, M&K Recovery Group has refined our techniques to reduce overhead and increase our returns to our clients. Many of our items come from various contracts we have: • Multimedia Games • Foxconn • Flextronics • Austin Task • Gruene Enviromental Construction M&K Recovery Group is an ISO 14001:2004, ISO 9001:2000, OHSAS 18001:2007 and R2 Certified. These certifications mean that we have processes, follow the process, and successful pass annual audits, in quality, and environment compliance. We set the bar high with extensive knowledge of environmental regulations and reporting standards. Our de-manufacturing team breaks items down into their base metals and electronic components, again producing the highest return possible for the items. In 2006, M&K Recovery Group expanded operations into Austin, Texas. We currently have locations in Massachusetts, Florida, and Texas. Corporate Office Austin-Facility Florida-Sales Office 100 Willow St. 9104 Cameron Rd. 28385 Sombrero Dr. North Andover,MA 01845 Austin, TX 78754 Bonita, FL 34135 Facilities M&K's R2 certified 35,000 square ft. headquarters, located in North Andover, MA, is a state-of-the-art processing and refining operation, licensed by a Massachusetts Department of Environmental Protection Recycling Permit. In Austin, TX we operate a R2 certified 18,000 square ft. facility which is a licensed Recycling Operation by the Texas Commission on Environmental Quality. Our operations are under 24—hour, taped camera surveillance, and access-controlled. Facilities are outfitted with shredding equipment for destruction of hard drives, tape and optical media, circuit boards, IC's and other proprietary surface-mount components. Page 5 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Proposed Operations Plan M&K Recovery Group would carry out the proposed contract with the City of Dallas according to our established and proven business plan. M&K drops trailer D P D seizes at DPD Impound gambling machines WO DPD load trailers for M&K transport DPD calls for pickup for released Trailer moved to machines M&K yard Manifest Verified M&K Determines best method of M&K Processes sale Machines Sales Payment Processed Online Inventory Shipping System Updated M&K Recovery Group would provide a storage trailer or multiple trailers if needed, at 1955 Vilbig Rd, Dallas, TX, at no cost to the City. The City of Dallas would be responsible for loading the trailer and securing the property. When the truck is ready, M&K will transport the games to our yard, and leave another trailer at the Dallas location. All incoming manifest will be verified for count shipped versus count shipped. M&K will send confirmation of receipt and the number of games to the contact at the City. An M&K employee will then inspect each of the machines and determine the best method of sale for each machine. Page 6 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Remarketing Our sales process is like no other on the market today. We evaluate each trailer received, taking into account the age of the machine, current market condition, and what makes the most money. We work to maximize the revenue from each trailer, because we work on a percentage of the sale, we both benefit from a higher sale price. If a trailer is full of older machines, where the parts would sell faster, and for more money than the complete machine, we will send the trailer through the reclaim process. This will allow us to harvest parts that are sellable, while properly recycling the parts that are not. If we see that the market is better to sell these machines, as individual systems, we can hit the market through our online channels. If buyers are asking for bulk orders of machines to fill a need, we can facilitate their request with the sale of the truckload. We are a complete solution, offering customers the ability to buy parts, one machine, or a trailer load. Unlike most of the other items we sell, gambling machines require careful regulation and enforcement to prevent them from being used illegally again. M&K would require two pieces of documentation for each sale: a signed affidavit affirming that the machine will be used legally and outside the State of Texas and either a Bill of Lading with a ship to address outside the State, or in cases of local pick up, an out of State driver's license. Should the City of Dallas prefer all three, or an additional documentation, M&K has the manpower and experience to enforce whatever requirements necessary. M&K considers such documentation as essential as payment; products do not leave our facility until we have all forms in our possession. M&K Recovery Group operates on eBay account with a feedback of over 10,000. With millions of registered buyers, eBay provides high visibility to a large pool of potential customers. Our ability to ship large items all over the world allows us to market to an even larger customer base. M&K Recovery Group has created invaluable ties too many customers. We have a loyal base of buyers in addition to the customers that find us on eBay, and many of our repeat customers purchase gambling machines. Many customers call us regularly to check our inventory status on games. We are also working with some of our buyers to create export options to other countries. Understanding the Market - Parts (Boards, Bill Accepters, Cabinets) - Complete Machines (Individual or Truckload) - Board Ready Cabinet Page 7 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Online Market Conditions (Parts) Product Feeea-c S liner game board 2073 07 05 2013 10-02 T eBay com t2 a still aBaycoml325) .. All Categories_ p; Enter Category ID: .. — f •�- Shaw Product Alters _ _ Clear Filters 4 Pin Panel I� V Apply Filters Views L AcSons 444 Productt.istings 1 i It..Title Sold Pormat Start Price :_ "End Firsts ri .Bids End Date i MM8 Liner Game Board/Cherry Master yes ABN 5749.00 5749.00 1 2013-07-12 PAidnight Castle by IG5(PREDWNED) 8 Uher Geme Board/Cherry Master Chef yes -BH 3749.00 5749.00 1 2013-07-24 .N Express by IGS{Pre(Xwned) t- Spy Games(Cheny Mester 8-liner)VGA yes Bid 3500.00 5717.89 14 2013-08-31 touchs--gem.board t", BLiner Game Board(CherrOPdaater yes Capialh JarkbylGS(PREC 1NED) sBiY 5775.00 3775,C0 7 2013-07-23 Online Market Conditions (Complete Machine) H Produnt PS_3arch - - TV >r S7 pot of gold ems 2013-07-05-2013-10-02 � _ eBaY com T• 9 c �; egay.cwm(24) All Categones Enter Category ID: }. Show Product Fitters i Ch Clear Filters J I Pm Panel 11 Apply Filters Views1181 w L h- Actions Productustings EM Em NMI Item Title Sold Format Start Price ""Erid Price "ter Bids EndDate Cherry Master Pot pf Goitl B-Einar Gaming Motherboard Game Board Y.s Bid S5999 5172,19 18 2013-08-10 00-000014 POT OF GOLD GG.h4E 60.P.RDS!!NO ye, Bid 30.99 590.00 9 2073-07-05 RESERVE Page 8 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Reporting All sales and inventories will be maintained by your direct contact at M&K Recovery Group. At any time, the City can request the status of their items and receive a report of where the machines are being sold, what items are in stock, and what items are being recycled. Additionally, M&K Recovery Group will send monthly sales and recycling reports to the City detailing each trailer received, the sales dates, sales method(remarket whole, remarket parts, or recycling), sales price, M&K commission, and proceeds to the City. A monthly check, or if requested, bank wire, will accompany the sales report. M&K operates using an open book approach; if the City requires additional information in these reports, we will do our best to provide it. M&K will maintain on file copies of reports and required documents for a period of at least eight years. ASSET TRAK Online Inventory Management �: an r^pan nzt�w� _s e U Click here for Asset Trak online demo Page 9 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Affidavit STATE OF TEXAS § COUNTY OF TRAVIS § SALES RESTRICTION ACKNOWLEDGEMENT I, the undersigned, do hereby acknowledge and understand that the machine or machines that I have purchased from the State of Texas were seized and forfeited as illegal gambling devices. Further, I do acknowledge that the mere possession of these machines is not illegal and that the sale of these machines by the State of Texas is restricted to those purchasers that will use them in a legal manner. Therefore, I do hereby swear or affirm that neither I, nor anyone with whom I am associated, will use any purchased machine as illegal gambling devices as that term is defined by Texas Penal Code § 47.01. I further swear or affirm that the machines will not be used or re-sold for use in Texas, as specified in the sale requirements. Printed Name of Purchaser Signature of Purchaser ■ This is the current version we use for sales, but it can be customized to meet your requirements. ■ As mentioned above,we also require either a Bill of Lading for shipping out of state or a copy of the customer's out of state driver's license for all sales. ■ Any customers who cannot meet these requirements have their sales canceled. ■ We are willing to put more safeguards in place based on the needs of the client, such as affixing permanent labels ("Not for use in the State of Texas") on each machine. In the year we have been selling machines, we have had no reports of items returning to Texas. Page 10 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Recycling Some items, such as those that do not function,will bring a higher return when recycled. M&K Recovery Group has an established environmental and quality programs; ISO 14001:2004, ISO 9001:2000, OHSAS 18001:2007 and R2 Certified company; specializing in Asset Disposition, Recycling, and Precious Metal Refining. Partnering with recycling and asset recovery experts is crucial. M&K ownership delivers on three decades of experience in the recycling and refining industry. "Going Green" means implementing organizational strategies that will properly manage and reduce your waste streams. M&K welcomes the opportunity to discuss solutions to your recycling and asset recovery initiatives. Protecting the environment and our clients is M&K's top priority.No hazardous wastes are sent to landfills. Our product knowledge and processing expertise combined with the broadest spectrum of in-house recycling capabilities, including state-of-the-art chemical refining, shredding, and testing, allow us to maximize your ROI. The City of Dallas will be set up as a client in our recycling software, and all recycled items and their weights will be entered into the system as they are processed. The software stores the up-to-date market value on all commodities and calculates the value of all items recycled. Certificates of Recycling will be provided along with the monthly reporting statements. Multimedia Games De-manufacture/Parts Recovery ft .r i � o- 'i l Page 11 of 16 M&K Recovery Group Presentation RFP-BYZ1350 G-Tech Lottery Machine De-manufacture/Recycle u.� Complete End-to-End Solution M&K Recovery Group will use our personnel, our facilities, and our expertise to get the City of Dallas the highest return possible on seized gambling machines. The entire process will be anonymous, and there will be no indications as the City's involvement. We will sell, and when necessary, recycle the machines in house in an environmentally responsible and open visibility manner. With our process,the City of Dallas will receive a greater return for less work, leaving you to focus your efforts on more important tasks. Page 12 of 16 M&K Recovery Group Presentation RFP-BYZ1350 References and Other Information M&K Recovery Group has worked with the following clients on gambling machine sales in the past: Multimedia Games (Recycle Contract) Allen Scott Inventory Control/Asset Management 4616 W. Howard Ln. Austin, TX (855) 642-6247 Sean Cockburn, M&K Business Development Manager-Austin has worked with the following clients on gambling machine sales in the past: Anderson County Chris Dobbs Investigator DA Office 500 N. Church Street Palestine, TX 75801 (903) 388-5845 Dallas Police Department Craig Deweese Vice Unit 1400 S. Lamar Street Dallas, TX 75215 214-671-3001 Plano Police Department Fred Garcia Intelligence Unit 90914 1h Street Plano, TX 75074 (972) 941-2220 Page 13 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Financials Using the historical sales data, the current market conditions, and the City of Dallas' requirements for no complete unit sold within the State of Texas. M&K Recovery Group proposes a tiered commission plan on all sales REQUIRING A STORAGE TRAILER(S) as follows: Trailer Activity M&K Commission City Commission Stored for 1 month 50% 50% Stored for 2 months 60% 40% Stored for 3 months 70% 30% Stored for 4 months or more 80% 20% We believe that this approach insures that the burden of the storage costs is shared between the City of Dallas and M&K. While the city will never be billed for the storage trailers; they will be benefit to the city with higher percentages of the sale price for continuing to utilize this program. This percentage will be used no matter if the machine is being sold complete, for parts, or for recycle. Recycled commissions will be split after all associated costs for environmentally responsible recycling. Knowing that other agencies may utilize this agreement as well,but NOT REQUIRING A STORAGE TRAILER(S)process currently being utilized in Dallas; M&K proposes a tiered commission plan as follows: Sales Method M&K Commission City Commission Sold as Whole 40% 60% Sold as Parts 45% 55% Recycled* 50% 50% *Recycled commissions will be split after all associated costs for environmentally responsible recycling. M&K expects that the vast majority—over 95% -will be sold as whole machines. All proceeds would be paid by check or wire transfer to the City monthly, no later than the 15th of each month for the full month previous, and would accompany the detailed sales report. The sales report would include a list of all machines sold in the month, the sales method, and then a breakdown of commission to each party based on the sales method. The total amount due to the City would be calculated by summing their commission on all sales for the month. M&K Recovery Group proposes this tiered commission rate for all sales occurring during the three year span of the contract. Assuming a forecast of approximately 60 machines per month,M&K estimates a gross monthly revenue of$12,000, with$6,000 to the City. Over a year, the City profit would be over$72,000.00. Page 14 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Out of our forecasted$6,000 monthly commission, M&K will pay all costs, to include: • All transportation costs from the City of Dallas to our yard. • All employee salaries (Account Managers, Inventory Technicians, Warehouse, and Customer Service); • All facility overhead; • Insurance; • For any and all shortages of stock; • Marketing and advertising fees; • Payment processing, including credit card and PayPal fees. All machines will remain the property of Dallas until sold by M&K Recovery Group. M&K will have first right of sale for all machines stored in our trailers for the life of the contract. M&K Recovery Group vs. Typical Auctioneer M&K Recovery Group Typical Auctioneer Storage and M&K pays for transportation and All items sold from City of Transportation stores the machines throughout the Dallas property sales process. Attention to M&K inspects each load to All the machines sold as one Each Item determine the best sales avenue large lot. truckload, lot, piece, or recycle. M&K can sale units individually or potential customers limited to by truckload and thereby appeals to those that can afford and stare a Sales Presence a larger pool of buyers. By selling large quantity of machines and on eBay as well as directly, we showcase our products to millions of that already know about their auction site. buyers. M&K has full logistics capabilities Customers must pick up from Shipping to safely pack and ship items all City of Dallas property, making over the world. anonymity impossible. M&K has staff of professionals that Potential customers call the Staff understand this process and todays City with questions. The City markets. has to facilitate pick up with the winning bidder. M&K operates a TCEQ registered recycling center and recycles all All machines that need to be Environmental broken machines in an recycled are either Responsibility environmentally responsible subcontracted or left to the manner. For a complete end to end customer. solution Page 15 of 16 M&K Recovery Group Presentation RFP-BYZ1350 Page 16 of 16 Exhibl..t .2 M&C Review Page I of 2 Official site of the City of Fort Worth,Texas WO TY OUNCIL AGENDA UT I COUNCIL ACTION: Approved on 3/7/2017 REFERENCE ** 35CONSIGNMENT OF 8-LINER DATE: 3/7/2017 NO.: C-28140 LOG NAME: GAMBLING MACHINES CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Agreement with M&K Recovery Group, Inc., for the Consignment Services of Illegal Eight-Liner Gambling Machines for a Percentage of the Sales Price Using a Cooperative Contract (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council authorize execution of an Agreement for consignment services of illegal eight-liner gambling machines with M&K Recovery group, Inc., (M&K Recovery) using the City of Dallas Contract BYZ 1350 authorized by City of Dallas Resolution No. 13-2144 for a percentage of the sales price. DISCUSSION: The Fort Worth Police Department (Department) will use this Agreement to remove illegally-operated eight-liner gambling machines from the community and reduce the frequency at which the operators of these machines reoffend. Once an illegally-operated machine is seized by the Department, the Department will store it in a trailer provided by M&K Recovery until the Department notifies M&K Recovery that the trailer is ready for transport. M&K Recovery will transport the trailer to its facility in Austin for storage until the machines can be sold outside of Texas to legally-run establishments. M&K Recovery manages the sale, shipment, and tracking of these machines to ensure that the machines are not being returned to Texas for illegal purposes. Once the machines are sold, M&K Recovery will keep a percentage of the sales price as its fee and will remit the remaining amount to the Department. The percentage M&K Recovery will keep is determined by the length of time M&K Recovery stores the machines prior to them being sold. COOPERATIVE PURCHASING - State law provides that a local government purchasing an item under a Cooperative Purchasing Agreement satisfies state law requiring that the local government seek competitive bids for purchase of the item. In accordance with Mayor and Council Communication (M&C P-10710) approved January 15, 2008, the City Manager may enter into an Interlocal Cooperative Purchasing Agreement that allows the cities to take advantage of each other's competitively bid contracts. The City has a Cooperative Purchasing Agreement with the City of Dallas (Dallas). Dallas awarded the contract for Consignment Services following a competitive bidding process. M/WBE OFFICE -A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Police Department and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. AGREEMENT TERMS - Upon City Council's approval, this Agreement will begin upon execution of the contract, and will expire February 18, 2018, to coincide with the expiration date of City of Dallas Contract. RENEWAL OPTIONS - This Agreement may be renewed for up to one additional one-year term at the City's option provided that Dallas renews its contract with M&K Recovery, per the conditions established in the contract between the City of Dallas and M&K Recovery. This action does not require specific City Council approval. http://apps.cfwnet.org/council_packet/mc review.asp?ID=24112&councildate=3/7/2017 4/25/2017 M&C Review ` Page 2 of 2 FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that the Police Department is responsible for the collection and deposit of funds due to the City. Upon approval of the above recommendations, these funds will be deposited into the State Asset Forfeiture Fund. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2 FROM Fund Department Account Project Program Activity Budget Reference# I Amount ID I I ID I I Year (Chartfield 2) Submitted for City Manager's Office by: Valerie Washington (6199) Originating Department Head: Joel Fitzgerald (4231) Additional Information Contact: Edwin Kraus (4141) ATTACHMENTS Dallas Contract.pdf HB 1295 Fort Worth.pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=24112&councildate=3/7/2017 4/25/2017 C-28140 C CERTIFICATE OF INTERESTED PARTIES FORM 1295 iafl Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos,1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING 1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number: of business. 12017-161597 M&K Recovery Group Austin,TX United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form Is 02/02/2017 being filed. City of Fort Worth Date Acknowledged: 3 Provide the Identification number used by the governmental entity or state agency to track or identify the contract,and provide a description of the services,goods,or other property to be provided under the contract. BYZ1350 Consignment of 8-1-iner Gambling Machines 4 Nature of interest Name of Interested Party City,State,Country(place of business) (check applicable) Controlling I Intermediary City of Fort Worth Fort Worth,TX United States X 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT I swear,or affirm,under penal of perjury,that the above disclosure is true and correct. �,�+�� ARTURO ROQOLFO AGCMTMI * Notary Public 'l� STATE OF TEXAS Signature of authorized agent of contracting business entity �O� My Comm.Exp.11-2&17 A Sworn to'Ia-nd subscribed before me,by the said MQ l?(ll �Q W cdj ,this the day of �� Y 20 Y ,to certify which,witness my hand and seal of office, Signal u of officer administering oath Printed name of Weer administering b th Title of officer administering bath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277