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Home My WebLink About1997-06-23 97-287 ORDERCOUNCIL ACTION Item No. 97-287 Date June 23, 1999 Item/Subject: Authorizing Settlement of Claims with Vision Appraisal Technology, Inc. (Assessing Department Software Contract) Responsible Department: Legal In March, 1996, the City of Bangor signed as ontract with Vision Appraisal Technology, Inc. for the licensingand installation of Vision Appraisal's municipal ssing software. After extensive efforts to install and Operate the software, it was determined that Vision Appraisal's product did not perform inaccordance with the City's expectations. Accordingly, by letter toVision Appraisal dated March 12, 1997, the City rescinded its contract. (cont'a on next page) Dep anent Be Associated Information: order, Letters dated 3/12/99 and 6/3/97 Finance Director � q W City, solicitors V Introaufed For _'T Passage First Reading Referral Page x of 7 97-297 Amigned to Councilor Aube Jove 23. 1997 CITY OF BANGOR (TIRE) VIiCBPT� Au11 txorizing settlement of -Claims with vision Appraisal Technology, Inc. (Assessing Department Software Contract) BY Coy Casnau of aw city ofitanm.- ORDERED, TEAT the City Manager is hereby authorized, on behalf of the City of Bangor, to execute all documents necessary to settle claims arising out of the City's recission of a contract dated March B, 1996, with Vision Appraisal Technology, Inc., for the licensing and installation of assessing software. All such documents shall be in a form approved by the City Solicitor, and shall provide for a complete release of all claims by the City and Vision Appraisal Technology, Inc., in nsideration for amounts previously paid by the City of Bangor on the original contract price. IN CITY COACIL June 23, 1997 9I-287 Passed 0 I pCN n-p�s.c� " Title, Authorizing Settlemet of Claims n ITY ,A. Y/ ` with Vision Appraisal Technology. Inc. (Assessing DepaetmeA Software Contract) ..................... ........�.... ,.. ..................... a�....� A ` ...... ................ Councilman 97-287 CITU OF _MAINE nx.aLg.STREET EANOOR, MAINE oxi LEGAL DEPARTMENT TEL tO>Ml Elk M. sNmpbk Cily Solcllar EAx207AW 4449 MATER S. Heimann 111, Acl oily Salicibr March 12, 1997 Kevin M. Comer, President Vision Appraisal Technology 30 Main Street Northboro, MA 01532 Re: Software License Agreement with the City of Bangor, Maine NOTICE OF RESCISSION Dear Mr. Comer: This letter is in reply to your letter to William D. LaPan, Director of Information Services for the City of Bangor, dated March 4, 1997. As you are aware, Vision Appraisal Technology and the City of Bangor's information services and assessing department personnel have been working closely together srnce mid-September, 1996, in an effort to install Vision Appraisal'sassessing software on Bangor's system for use by our assessing department. Despite good faith efforts on both sides, it now appears that Vision Appraisal's software will not function adequately in Bangor's application, without prohibitively expensive and time-consuming reappraisals and manual conversions of existing data formats. You have previously received written notice of these problems. Specifically, it appears that Vision Appraisal's software is unable to convert data from Bangor's existing assessing program and files and still generate valuations within 25 of the City's current valuations, as required by Bangor's request for proposals. This defect cannot be corrected within the original contract price or the current project budget. My understanding is that other features of Vision Appraisal's software, for example the software's reports capability, far exceed those of your competitors. These features are very appealing to r assessing department staff. However, itisessential tc Bangor's application that the valuation numbers generated by your Product, based on existing data, be accurate within the stated 25 range. Unfortunately, test runs of your firm's software have Produced valuation errors that in many cases exceed 1005. 9J -28I Kevin M. Comer March 12, 1991 Page 2 Because Vision Appraisal's software does not Produce accurate valuations in Bangor's application, I have been directed by the Finance Committee of the Bangor City Council to notify you of Bangor's election to rescind our agreement[ Pursuant t0 Paragraph 18(a) Of the "Vision Software License Agreement." Pursuant to paragraph 18(2), City of Bangor Information Services Director 8111 LaPan will be returning the licensed software and documentation to you under separate cover. In return, I anticipate receiving Vision Appraisal's refund of the $10,250.00 previously paid by Bangor. I will also be happy to obtain authorizations and signatures on any claim releases your attorney may require.. In closing. I want to emphasize that the City of Bangor appreciates the efforts of Vision Appraisal and its employees to make your product work in our application. I am informed that you and your employees have been courteous and responsive on these issues. However, due in part to the age of Bangor's system, it appears that the task of converting existing data on our system was larger and more difficult than anticipated at the time Vision Appraisal submitted its proposal to the City of Bangor. Sincerely W- 411, Erik M. fel" City Solicitor EMS/tc Pc: Edward A. Barrett, City Manager William D. LaPan, Information Services Director Benjamin F. Birch, Jr., City Assessor 9]2'28) At the time of recission, the City had paid $10,250 of the $25,500 contract price, primarily for installation and for training of City personnel. Following recission, the City returned the software to Vision Appraisal and received a $12,000 credit against the remaining contract balance. The City's March 1997 notice of recission also sought a full refund of the $10,250 amount previously paid, on the basis that the software did not comply with our contract requirements. Vision Appraisal's position is that the software did meet contract requirements, and that Vision Appraisal is entitled to be paid all amounts billed under its contract, less the $12,000 credit. The attached Council Order would authorize a settlement of all claims arising out of the City's recission, in exchange for the $10,250 payments previously made by the City.The settlement would be in accordance with a proposal by Vision Appraisal, as set out in a letter dated June 3, 1997, copy attached. 9J-287 WHITE Be MMERMOTT, P.C. Counsellors at Law 65 VdLLLkM STREET. SURE 209 WELLESLEY, MASSACHUSETTS 02181 David A. White Telephone (617) 431-1700 Scott F McDermott Fax (617) 237-8120 Shama(Jotldard White EMail:WhiteMc uPindcom John L McCarty, Jr. . June 3, 1997 Via Federal Express Eric M. Smmpfel, Esq. City Solicitor City of Bangor 73 Harlow Street Bangor. IvE 04401 Re: Yision Appraisal Technolonv Inc DearMr.Stampfkl: We are writing on behalf of our client, Vision Appraisal Technology, Inc. (the "Compmy'� in order to follow up on our letter of April 29, 1997 (see aRached). W. Bevin Comer, the President of the Company, has informed us that the Licensed Programs have been relumedtothe Compmybythe CityofBmgor. As aresult, the Company, in accounted with its offer in the April 29, 1997 letter, will credit the City $12,000 toward the outstanding balance of $15,250 awing to the Company. The Company appreciates your timely response to our letter and, in an effort to resolve this matter once and for all, the Company hereby offers to forgive the remaining Mance nexchange for the execution of the attached release. Please have an authorized representative of the City execute the sane and remain it to us. Please call us with any questions or comments on the above. We look forward to hearing from you. ce: Kevin M. Comer Vevtm yours. John J. McQiuthy 9]-2W n'1W�7�;ir For and in consideration of the forgiveness of debt of the City of Baegoe Maine (the "City') at this time of the sum of $3,250.00, the receipt of which is hereby acknowledged, we do hereby release, hold harmless and forever discharge Vision Appraisal Tecbnology, Ina(the "Company"), its successors and assigns, and any and all of its correct and former agents, employees, principals, insurers, stockholders, directors, officers, employee benefit plans, plan administrators, affiliates, subsidiaries and related companies (collectively the "VAT Parties') of and from any and all actions, causes of action, rights, claims, demands, costs, liabilities, losses, expenses and compensation, past, present or future, which we ever had, now have or may have against any of the VAT Parties, including without limitation claims arising from our rights under a certain Software License Agreement dated March 8, 1996 by and between the City and the Company, and any documents and correspondence relating Iherem. This Release is binding on our agents, employees, affiliates, related companies, assigns, successors in interest, heirs, administration and executors. The undersigned hereby declares and represents that in making this Release it is understood and agreed that we rely wholly upon am ownjudgmai belief and knowledge of the nature, extent and duration of said claims and that we have not been influenced to any extent whatsoever in making this Release by any representations or statements regarding said claims, or regarding my other matters, made by the persons, firms or corporations who are hereby released, or by any person or persons representing them. This Release contains the entire agreement among the parties hereto, and the terms of this Release arm communed in =low and not a mere recital. We further state that we have carefully read the foregoing Release and we know the cements thereof and we sign the same as our own free act and it is our intention to be legally bound hereby. CITYOFBA WR,MAIsM By: Nome: Title: Dale: