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FC CASE # 4 AUTHORIZATION TO TERMINATE CIVIL DEFENSE SIREN MAINTENANCE CONTRACT WITH DORADUS CORPORATION AND ENTER INTO AN AGREEMENT WITH EMBEDDED SYSTEMS, INC. By: Jessie Hart, Finance Officer Background: For the past several years the City has contracted with Doradus Corporation for the maintenance and monitoring of the civil defense siren system. Initially the cost was on a time and materials basis but in the most recent contract was converted to a fixed price service agreement. The difference between the two is that the former was a situation whereby we were only charged if we called for service and the latter is a fixed price repair/inspections are done on a scheduled basis. The cost of the fixed price service agreement is considerably higher, however if there are problems that arise and are covered under the repairs detailed in the contract, then the price does become more reasonable. Doradus Corporation, who has been the only option for this type of service, has been lacking severely in their attentiveness to the city's needs and the communication between their repair agent and the City is terrible. Because of this decline in service from Doradus Corporation, I requested a proposal/contract from Embedded Systems, Inc. The attached Embedded Systems, Inc. contract is virtually identical to that from Doradus Corporation, except for the cost, which is somewhat lower than that of the 1996 Doradus Corporation contract [see attached cost comparison]. Police Chief Mike Auspos contacted the references listed on the Embedded Systems, Inc. information and all highly recommended them over Doradus Corporation, citing the same communication and service concerns. The current Doradus Corporation contract is set to expire on December 31, 1996. The contract currently has the following termination clause: "At the end of each calendar year the agreement will be renewed automatically for one additional year. Either party may terminate this agreement without cause by providing the other party written notice of such termination a minimum of 60 days prior to the renewal date of this agreement." Based on the in_formation at hand, it appears to be in the best interest of the City to notify Doradus Corporation of the City of Ramsey's intent to terminate our contract agreement as of December 31, 1996, and enter into an agreement with Embedded Systems, Inc. for calendar year 1997.