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05-90 Resolution No. 05-90 RESOLUTION AUTHORIZING EXECUTION OF A CODERED SERVICES AGREEMENT WITH EMERGENCY COMMUNICATIONS NETWORK, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum, City Clerk,be and are hereby authorized and directed to execute a CodeRED Services Agreement on behalf of the City of Elgin with Emergency Communications Network, Inc. for an emergency notification system, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: March 23, 2005 Adopted: March 23, 2005 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk CODERED SERVICES AGREEMENT This Services Agreement("Agreement") is made and effective as of the last date written below by and between Emergency Communications Network, Inc. a Florida Corporation ("Licensor") located at 9 Sunshine Boulevard, Ormond Beach, FL 32174 and City of Elgin, a body politic and corporate of the State of Illinois("Licensee") located at 150 Dexter Court, Elgin, Illinois 60120. Licensor is the owner of a service identified as"CodeREDT"" Emergency Notification System" (The"Service"), which allows users to place prerecorded telephone calls at high speed to call recipients. Licensee desires to utilize the "Service"for the purpose of communicating matters of public interest and concern. Now, therefore, in consideration of the mutual promises and convents contained herein, the sufficiency of which is herby mutually acknowledged, the parties hereto hereby agree as follows: 1. License: Licensor grants Licensee a non-exclusive and non-transferable license to use the "Service" (hereinafter referred to as "The License")for Licensee's own purposes in accordance with the terms outlined in this Agreement. Licensee understands and agrees that they are fully responsible for the use of such services by anyone whom Licensee authorizes or permits to use the"Service", and anyone who accesses the"Service" by utilizing Licensee's Confidential access codes. a. The Licensee may not modify the"Service", disable any license or control features of the "Service." Licensee may not(i)assign, license, sublicense, rent, sell, transfer the"Service", this agreement, or any portion thereof or(ii) utilize the"Service"except as expressly permitted in the Agreement between Licensee and Licensor. This Agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto, except to such extent as shall be specifically provided for herin. The License will include pass codes for up to five 5 authorized "Service" users. Additional users pass codes may be obtained at an additional annual fee as outlined in Exhibit A. 2. Ownership: The"Service" is owned and copyrighted by Licensor. The Licensee's license confers no title or ownership in the "Service"whatsoever. 3. Copyright: United States copyright laws and international treaty provisions protect the "Service". Except for the limited license provided, Licensor reserves all rights in and to the "Service"and all underlying data, compilations, and information maintained by Licensor relating to the "Service", including but not limited to, the source or object code. 4. Functionality: The"Service" provides the ability for the Licensee to access pre-defined geographically selected calling areas or listed databases via an Internet-based software application. The"Service" also has the ability to select calling databases via a geographic mapping component. The Service will also utilize an interactive voice response telephone service used to record messages and initiate call out projects. The "Service" is designed to be active 24 hours per day 365 days per year. 5. Costs for The "Service": During the term of this agreement Licensee agrees to pay all costs for utilizing the"Service" as described in Exhibit A-Service Charges; attached to and made a part of this Agreement. Licensee will purchase prepaid "Service" (Prepaid System Minutes). Whenever Licensee utilizes the"Service"the actual calling minutes used by Licensor while utilizing the "Service"will be deducted from the balance of Prepaid System Minutes remaining in Licensee's Prepaid Minutes account. Licensee is responsible for maintaining a positive balance of Prepaid System Minutes on account. Payment for the "Service" is due and payable upon receipt of invoice (ROI). Finance charges at a rate of 1% per month (12% per annum)will be charged on all balances outstanding beyond 60 days. If a law which applies to this finance charge is interpreted so that the interest or other finance charges collected or to be collected in connection with this agreement exceed the permitted limits, then (i)any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit, and (ii)any sums already collected Emergency Communications Network,Inc Page 1 of 6 Initials CodeREDT"Services Agreement Licensor Licensee from Licensee which exceed permitted limits will be refunded to Licensee. All payments due under this agreement shall be paid to: Emergency Communications Network, Inc. at 9 Sunshine Blvd., Ormond Beach, FL 32174. 6. Free Minute Blocks: Licensee is allotted free time on the system for the purpose of testing and training. The following must be met in order for Licensee to utilize the free minute bank specified in Exhibit A: a. Minutes will be deducted from Licensee's minute bank at the time of using the "Service". b. Licensee must notify Licensor in writing within 60 days of the use of the"Service" specifying qualified project(s)to obtain eligible free minutes and restoration of the deducted minutes into Licensee's minute bank. If Licensee fails to notify Licensor within 60 days of the use of the "Service", the minutes used will not be eligible for consideration as free minutes and will remain as a deduction from Licensee's minute bank as described above in paragraph 6. c. Any unused minutes remaining in these blocks are not transferable. d. Licensor will have the final right to deem all free calling minutes eligible or ineligible. 7. Term of Service Agreement: The License will extend for a period of two(2) years beginning on the last date this agreement is signed by both Licensee and Licensor. On the date this agreement terminates, Licensee will forfeit all Prepaid System Minutes remaining on account. 8. Contract Extension: Upon each annual anniversary of the effective date of this agreement, the term of this agreement will extend for additional one-year periods. This contract extension provision (the"extension provision")will continue to extend the contract period by one additional year annually. Either party may cancel this extension provision by submitting notice to the other no less than 30 days prior to the annual anniversary of the effective date of the agreement. The activation of the extension provision will trigger the following events: a) Licensee's minute bank will be replenished to the original 67,000 minute balance; b) Licensor will update its systems to extend the active software license and associated access codes for one additional year of use; c) Licensee shall pay Licensor the sum of ten thousand dollars ($10,000) upon receipt of invoice from Licensor for the one-year contract extension. 9. Minute Bank Refill feature: The parties recognize that Licensee may utilize the "Service" in a manner that results in the actual System Minute usage exceeding Licensee's active Prepaid Minute Bank. In the event using the"Service"completely exhausts Licensee's remaining Prepaid Minute Bank Licensor will immediately refill Licensee's Prepaid Minute Bank with a block of 67,000 System Minutes, and will invoice Licensee for this block of minutes at the Additional System Minute price as indicated in Exhibit A. Licensee will be responsible for payment of Additional System Minute blocks upon receipt of invoice from Licensor. Licensee agrees to purchase all such additional blocks of minutes as needed in order to maintain a positive Prepaid System Minute balance. The purpose of this refill feature is to ensure that calls being placed via the"Service" are not interrupted as the result of Licensee's depletion of their Prepaid Minute Bank. 10. Appropriate Use of The Service: To access the"Service" Licensor will provide Licensee with unique user name(s)and password(s). Licensee agrees to maintain such user name(s)and password(s) as private and confidential information. Licensee agrees to use the "Service" in a way that conforms with all applicable laws and regulations. Licensee specifically agrees not to make any attempt to gain unauthorized access to any of Licensor's systems or networks. Licensee agrees that Licensor shall not be responsible and liable for the content of the message(s)delivered by the"Service" on behalf of Licensee. Emergency Communications Network,Inc Page 2 of 6 Initials CodeREDT"Services Agreement Licensor Licensee 11. Security: Licensee understands that Internet communications are not secure, and may be subject to interception or loss. Licensee understands and acknowledges that Licensor is providing the"Service"on the World Wide Web through an "upstream" third party Internet Service Provider, utilizing public utility services. Licensor shall not be liable to Licensee in the event of any interruption of service or lack of presence on the Internet as a result of any disruption by the third party Internet Service Provider or public utility. In the event of any disruption of service, Licensor will use its best efforts to notify Licensee and to expedite resumption of service. 12. Warranty: (a) Licensee acknowledges that software in general is not error-free and agrees that the existence of such errors in software used in conjunction with the "Service" shall not constitute a breach of this License. (b) In the event that Licensee discovers a material error which substantially affects Licensee's use of the"Service" and notifies Licensor of the error, Licensor shall use reasonable measures to correct that part of the "Service"which does not so comply, provided that such non-compliance has not been caused by any modification, variation or addition to the"Service" not performed by Licensor, its agents or contractors, or caused by its incorrect use, abuse or corruption of the "Service"software, or by use of the"Service"with other software or on equipment with which it is incompatible. (c) Licensee is responsible for maintaining access to the Internet. Licensor in no way warrants Licensee's access to the Internet via Licensee's Internet Service Provider(s). 13. Warranty Disclaimer: To the extent permitted by the applicable law, Licensor disclaims all other warranties with respect to the"Service", either express or implied, including but not limited to any implied warranties of merchantability or fitness for any particular purpose. In no event(even should circumstances cause any or all of the exclusive remedies to fail of its/their essential purpose and even if Licensor has been advised of the possibility of such damages)shall Licensor be liable for any special, indirect, incidental or consequential damages of any nature (regardless of whether such damages are alleged to arise in contract, tort or otherwise), including, but not limited to, loss of anticipated profits or other economic loss in connection with or ensuing from the existence, furnishing, function, or Licensee's use of any item of products or services provided for in this Agreement. Licensee understands that the cumulative liability of Licensor for any and all claims relating to the"Service" provided by Licensor, in contract, tort or otherwise, shall not exceed that total amount paid by Licensee for the most recently purchased block of Prepaid System Minutes. 14. Indemnification: Licensee understands that Licensor does not restrict the use of the "Service" by Licensee and therefore Licensee agrees that Licensor shall not be responsible and/or liable for the content of the message(s) created by Licensee delivered by the"Service" on behalf of Licensee. To the extent permitted by law Licensee agrees to defend, indemnify and hold harmless Licensor and its affiliates, employees and agents, including but not limited to Licensor's exclusive sales agent, The Broadcast Team, Inc., from any and all liabilities, costs, and expenses, including reasonable attorneys'fees, arising from any violation of this agreement by Licensee or those who access the "Service"through Licensee's account, or the use of the "Service"or the placement or transmission of any message, information or other materials by Licensee or by those who have access to the "Service" through Licensee's account. Licensee shall be responsible for compliance with all applicable laws regarding outbound telemarketing, which may include, but are not limited to the Federal Telephone Consumer Protection Act of 1991, The Telemarketing and Consumer Fraud and Abuse Prevention Act of 1999 and the rules and regulations promulgated thereunder, as well as State and Local telemarketing laws and requirements. Licensee shall, to the extent permitted by law, defend, indemnify and hold Licensor harmless from all lawsuits, demands, liabilities, damages, claims, losses, costs or expenses, including attorneys'fees (whether by salary, retainer or otherwise), arising out of or resulting from, in whole or in part, a violation of such laws. Licensee will be solely responsible and liable Emergency Communications Network, Inc Page 3 of 6 Initials CodeREDT"Services Agreement Licensor Licensee for any such violations. The provision of this Article shall survive termination of this Agreement. 15. Non-Disclosure: (a) Licensee acknowledges and agrees that in providing the "Service", Licensor may disclose to Licensee certain confidential, proprietary trade.secret information of Licensor("Confidential Information"). Confidential Information may include, but is not limited to, the"Service", computer programs, flowcharts, diagrams, manuals, schematics, development tools, specifications, design documents, marketing information, financial information or business plans. During this Agreement and for a period of five (5)years thereafter, Licensee agrees that it will not, without the express prior written consent of Licensor, disclose any Confidential Information or any part thereof to any third party, except as required by law. At the termination of this Agreement, Licensee will cease utilizing the "Service" and will return all Confidential Information to Licensor unless Licensee renews the"Service"as outlined in this agreement. Nothing in this Agreement will be deemed to prohibit the disclosure of any information in response to a subpoena or other similar order by a court or agency with jurisdiction to issue it relevant to the resolution of any dispute between the parties. The Licensee will promptly notify the Licensor of the receipt of any subpoena or other similar order and of any request under the Public Information Act or any other similar law. The Licensee will cooperate with the Licensor in defending against disclosure of any confidential information under any such subpoena, order or request. (b) Licensee also agrees that it shall not duplicate, translate, modify, copy, printout, disassemble, decompile or otherwise tamper with the "Service" or any software provided. 16. Termination: Licensee may terminate this Agreement by notifying the Licensor in writing no less than 30 days in advance of desired termination. Licensee will return all Confidential Information and copies to Licensor. Licensee will forfeit all Pre-Paid System Minutes upon termination of this Agreement. Licensee understands that Licensor reserves the right to terminate Licensee's account at any time for reasons including, but not limited to, failure to abide by the terms of this agreement or failure to pay any fees or charges when due. In the event that Licensor terminates this agreement for reasons other than Licensee's failure to abide by this agreement, Licensor will refund to Licensee an amount equal to the balance of Prepaid System Minutes in Licensee's account. Upon termination, Licensee agrees to remove from Licensee's computer(s)any files related to the"Service". 17. Merger: This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. Only a further writing that is duly executed by both parties may modify this Agreement. 18. Confidential Data: Licensor agrees that in view of the confidential nature of Licensee supplied data and files that it is to prepare, process or maintain under this Agreement, it will perform its duties in such a manner as to prevent the disclosure to any persons not employed by Licensor of any such data and files unless Licensor and Licensee mutually agree in writing otherwise, or as required by law. 19. Integrity of Data: Licensor cannot guarantee the integrity of any Licensee supplied data. As such, any errors, duplications, or inaccuracies related to Licensee supplied data will ultimately reside with Licensee. 20. Notices: All notices or requests, demands and other communications hereunder shall be addressed to the parties as follows: As to Licensor: Emergency Communications Network, Inc. 9 Sunshine Blvd. Ormond Beach, FL 32174 As to Licensee: City of Elgin;Attn:Asst. City Manager, 150 Dexter Court Elgin IL 60120 Emergency Communications Network,Inc Page 4 of 6 Initials CodeREDTM Services Agreement Licensor Licensee 21. General: Each party to this agreement agrees that any dispute arising under this agreement shall be submitted to binding arbitration according to the rules and regulations of the American Arbitration Association. If any dispute arises the prevailing party shall be entitled to the costs and attorney's fees from the losing party for enforcement of any right included in this agreement. 22. Severability: The terms of this Agreement shall be severable. In the event any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect unless the intentions and expectations of the contracting parties would be negated due to severability or unenforceability. 23. No Construction Against Drafting Party: Each party to this Agreement expressly recognizes that this Agreement results from a negotiation process in which each party was represented by counsel and contributed to the drafting of this Agreement. Given this fact, no legal or other presumptions against the party drafting this Agreement concerning its construction, interpretation or otherwise accrue to the benefit of any party to this Agreement, and each party expressly waives the right to assert such a presumption in any proceedings or disputes connected with, arising out of, or involving this Agreement. IN WITNESS WHEREOF, the parties execute this Agreement on the date(s) indicted below. Licensee: City of EI-gin, Illinois By: Printed Name: U, Title: Date:�Sr` Licensor: Emergency Communications Network, Inc. By: Printed Name: IN I D 114 l f4CO M O Title: 19 Df 0 pe(-a:hO0S Date: 031014 ' 2005 Emergency Communications Network, Inc Page 5 of 6 Initials CodeREDT"Services Agreement Licensor Licensee Exhibit A — Service Charges Initial block purchase(s) of Prepaid System Minutes: Two(2)year CodeRED Service Agreement $ Included 67,000 CodeRED System Minutes $ 20,000.00 Additional System Minutes $ 300 per minute 500 minutes for testing and training $ No Charge (see paragraph 6) Up to 5 CodeRED user pass codes $ Included Initial Residential Database Upload $ No Charge Initial CodeRED distance training $ No Charge System usage will be charged against Prepaid System Minutes at actual minutes of time connected while delivering prerecorded System calls. All calls will be billed in 6- second increments. Only connected calls (live connections, answering machine connections and fax tone connections)will result in connection charges being incurred. Additional Pass codes may be purchased for an annual fee of$150.00 per pass code. Database Accuracy Updates Licensor Supplied Database: "Database Accuracy Updates" ensure that the data population maintained by Licensor under this Agreement undergoes periodic accuracy checks using the Licensor's most current in-house compiled database including, but not limited to, household addresses and telephone numbers. It will be the sole responsibility of the Licensee to maintain database accuracy and request updates from the Licensor. One annual"Database Accuracy Update"will be performed by the Licensor upon request by the Licensee at no charge. Additional updates requested by Licensee will incur charges at the rate listed below after the update service is completed by Licensor. 2.5� per record in final updated database population. Licensee Supplied Database: A service labor fee of One Hundred Dollars($100.00) per hour will be billed to Licensee for any data importing, manipulating, and loading any database supplied by Licensee or on Licensee's behalf to Licensor. $100 per hour for database maintenance Annual System Maintenance, including all Software Upgrades $ No Charge Emergency Communications Network, Inc Page 6 of 6 Initials CodeREDT"Services Agreement Licensor Licensee C It of E I I t1 Agenda Item No. Y g February 18, 2005 , a TO: Mayor and Members of the City Council SAFE COMMUNITY FROM: Olufemi Folarin, Acting City Manager James J. Burns, Deputy Chief of Police SUBJECT: CodeRED Emergency Communications Network Contract PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider entering into a contract with Emergency Communications Network for a service to supply 67,000 minutes of calling time on their community notification system. RECOMMENDATION • It is recommended that the City Council approve entering into the agreement with Emergency Notification System in the amount of $20,000 for a service to supply 67,000 minutes of notification telephone time. BACKGROUND The City of Elgin has been interested in a system that will allow the police, fire and public information departments to, make immediate.notification for our citizens in the event of any major incident, such as a gas leak, hazardous material release, notification of spring clean-up week, etc. The City of Elgin purchased a system in 1997 to perform this function, this system had significant on-going maintenance costs and update requirements of over $12,000 per year and required on-going personnel costs to maintain the system. The system was discarded in 2002. A City owned system also had the significant drawback of only being able to use the allocated 6 telephone lines to make contacts, resulting in very slow notification and below average contact rates of fewer than 30%. The City of Elgin has been searching for an alternative and located the "CodeRED" system through our contacts with the International Conference of City Managers (ICMA). CodeRED is a significant departure from our existing system in that it requires no equipment or maintenance on, the part of City staff. All of the equipment, data bases and telephone lines are owned and maintained by the vendor. The City will be purchasing a block of minutes for our use. We will be accessing the data and issuing notification instructions via the internet or telephone. The system is capable of making 60,000 calls per hour, significantly reducing the contact period in the event of a major incident. CodeRED Service contract February 18, 2005 Ip Page 2 This service is becoming the most popular form of emergency notification for both emergency services and for other non-emergency community notification. The system can be set to make any notification desired by City staff. This could include notifying members of a class at The Centre that a class has been cancelled, or a geographically selected group that they are located on a parade route and must not park on the street for a period of time. Theoretically, the system can also be used to promote education on the Spring Clean Up Week being offered for the first time this March or to remind residents of the free leaf pick-up schedules. The uses are up to the imagination of the user. . This system has primary grown in the southern states, especially Florida, where emergency notification of hurricanes has been difficult to manage. This system has been credited with saving hundreds of lives due to its high call volume and accurate data base. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT There are sufficient funds. available ($20,000.00) and budgeted in account number 1�731.30-99, General Fund, Emergency Operations, Miscellaneous Professional Services for this expenditure of$20,000. E AL IMPACT None. ALTERNATIVES 1. The City may choose not to enter into this contract. 2. The City may choose to invest in our own private solution with the noted limitations. Respectfully submitted for Council consideration. JJB/jjb Attachment • enc Eroerg y Communications Network Emergency Communications Network®(ECN) operates the CodeRED® System and is the only authorized provider of this proprietary service.No other company or business is authorized to provide service on this system. The CodeRED Emergency Telephone Messaging System is a service providing clients with the ability to deliver customized, pre-recorded in your voice,emergency messages at a rate of up to 60,000 calls*per hour. What makes CodeRED Unique? • CodeRED is the only emergency notifications company with the rights to use patented RealCallTM algorithm detection technology to ensure messages are delivered IN FULL. (Reference U.S.Patent No. 6,324,262 B 1) 0 There is no CodeRED specific hardware to buy, no dedicated telephone lines to lease, no maintenance costs,no need for additional personnel. • • CodeRED is the only service of its kind where the only cost of for the service is for the actual calling minutes used. Calling minutes.are pre-purchased, with discounts for larger quantities purchased. • Authorized clients have access to the system 24 hours a day — 365 days a year from virtually anywhere in the world via their proprietary secure CodeRED Internet portal. • ECN maintains redundant hardened calling facilities in multiple states. • Calling populations can be selected via a proprietary geo-coded map interface and/orTrom pre-determined calling lists. • CodeRED attempts to deliver your custom message to each phone number up to three times to ensure high delivery rates. • Call statistics are provided in real time and allows you.to view the results for every call record. • All CodeRED software updates are provided free of charge. * All references to call rate are based upon a 30 second message. Messages of a shorter duration will increase call rate and subsequently, longer messages will decrease the call rate. • Comparative Benefits of the CodeRED System Launch from anywhere — CodeRED can be launched from anywhere—there is no requirement to go to a central location or specific PC to set-up or launch a job. Jobs can be preset to allow immediate launch at time of need. Speed —CodeRED can deliver 1600 messages per minute. A PC based system is limited in speed to the number of phone lines attached to the system. Some PC- based vendors will tell you that in an emergency, they can "switch" you to a faster web-based system that uses their phone lines. Be very cautious of company's that make such claims. We have yet to discover a city or county that has used such a system and been successful. Phone line costs — CodeRED uses our phone lines, and you have access to many, many more.lines than you would be able to cost justify. PC based systems are limited to the number of phone lines attached to the system and phone lines cost a government agency anywhere from $20 to $30 per month/per line. Line sharing? — CodeRED uses our phone lines and none of the lines you will need in an emergency. In an emergency situation, that is exactly when you need your phone lines available, and to give them up to your emergency dialing system is not a viable option. Line sharing systems are temperamental and inefficient and often do not release lines in use, requiring communities to limit access to the lines to keep systems from dominating an entire phone system at the worst possible time. System Sharing? — CodeRED does not"borrow" a system from.a another community to increase speed and throughput. Some PC systems have set up a system sharing agreement between communities, and advertised this as a benefit. This requires that all systems be:updated with both community updates and data, and assumes that local communities will not be affected by the same issues. The recent Hurricanes, wildfires and severe weather/flooding issues prove this wrong. At the time of the biggest need, the systems cannot be shared. IS resources—CodeRED does not require the use of your limited and busy IS resources. With CodeRED, every customer is always on the latest version and revision without any IS intervention. With CodeRED the community does not have to schedule upgrade or maintenance time on the system. With a PC based system, any change to the system will be done by your IS department. Database updating — CodeRED does your database updates for you, and in fact supplies a database for your use'in addition to any of your databases, such as 911 or Utility databases. CodeRED does not charge for annual database updates. PC based systems require all updates to be done locally and charge a significant charge for every update. ;i • Program updates - CodeRED does any and all programmatic upgrades for you. Every CodeRED customer is always on the latest and best version. If a bug is ever discovered, every customer has the fix at the same time and requires no IS intervention. PC based systems must send.patches and updates out to customers, many of whom will be on different versions and revisions and IS must accomplish all the changes. Hopefully, their workload is such that the changes and updates can be accomplished in a timely fashion. Operating system changes— CodeRED has no requirement for a particular operating system. PC systems can and do, and often must change, simply because the operating systems are no longer supported (for instance, Windows 3.11, Windows 95, Windows 98). These upgrades are often costly and require new hardware in addition to a large software change and the usual integration process of learning about new errors and idiosyncrasies. Hardware replacement— CodeRED requires no additional hardware or software, so there is never any need to replace your PC, cards, add memory or monitors. A PC based system ages and needs to be replaced now and again, cards and parts do fail, and the PC or parts can be destroyed or broken if there is any damage to where they are located or if.they are affected by a virus. Single point of failure —CodeRED does not reside on a single PC, or any hardware at your location for that matter, so there is no need to worry whether your PC is down, Pr if there is a virus or the cards do not work, etc. With a PC based system, there is a single point of failure and even with an on-site back-up there will still be a time delay in moving phone lines and services at the time.of need. A back-up will require your IS resources to maintain two separate systems adding to the possibility of having disparate systems. Local line usage during emergency— CodeRED always comes through the long distance side, so increased local usage as'occurs during an emergency is less likely to affect connection rate. A local PC based system will be dialing out on your local lines affecting connection rates locally, as well as limiting other communications at the time of need. Long distance costs— CodeRED has all calling costs included. A PC based system that needs to call long distance, in the case of a widely dispersed area or county(or the above mentioned "shared system"), will add long distance costs on top or all the other costs involved. On going training — CodeRED is easy to operate and training is included in the cost of the system. We have said the system is built.for someone who has not used in two years. There is a simple three step, intuitive process to launch a call. PC based system are complex, and require constant retraining to be able to utilize the system at time of need. The City of Orlando held a Rev. 911 training class EVERY WEEK because their system was so difficult to use. •1 Single user syndrome — CodeRED is built to be simple to operate, even for personnel who have not seen or used it recently. PC based systems, because of the complexity often end up with only a single person that understands at least partially how to operate it. In the case of an emergency that person must be available to operate the system, and this is not always the case, especially for use over extended time periods. 1. SPEEDM This is the most important difference. If the city/county dedicated.8 phone lines to the system, and the emergency message was 30 seconds long, you would only be able to launch 10 - 12 calls per minute (we can launch 1,600 per minute). A PC-based system salesperson will tell you that 8 lines can place 16 calls per minute (with a 30 second message), but don't believe it. You have to take into consideration the time the phone is ringing, when the listener actually hangs up, and several other variables. Some vendors who sell hardware-based systems will also tell you that they can offer a web-based model for"emergencies." If they had a web-based model for "emergencies,"why are they also selling you a hardware system? It would be more affordable for them to allow the city/county to place all calls through the web-based system. The CodeRED business model is virtually "unmockable" (for lack of a better word). CodeRED has been purchasing lines of telephony for over 12 years. .We have thousands of lines located in dialing bunkers throughout the country. If a company tried to copy us, they could not afford to purchase that many lines. And even if they could afford the lines, the phone company would not allow them to purchase that many lines without a large customer base. ECN (our parent company) and CodeRED launched over 100 million phone calls last year. 2. COST When you purchase your own hardware, or server-based system, you will pay a lot of money up front. For most cities, this can range anywhere from $35,000 up to $100,000. Added to that are your monthly or annual maintenance fees, monthly cost per phone line (usually$30 per line), and cost per call (around $30 per minute. • I have talked with several cities that have shelled out money for an expensive system, expecting it to be the "be all, end all fix" for their emergency management needs. Then after implementation, they discover that it does not do what the salesperson promised. When they call the vendor to ask why,they usually say, "Well, yes, it can do that, but you have to pay another$10,000 for another piece of hardware, software, module, database updates, maintenance, etc." CodeRED will not nickel and dime you. You pay$5000 per year and we provide - installation, training, testing minutes, phone numbers... the whole package. Then, when we update the system, you get the update automatically without having to do or install anything. 3. IMPLEMENTATION / TRAINING One of our current customers, a large city in Central Florida, was previously using the Rev. 911 system. The system was so difficult to use that they literally had a Rev. 911 training class every WEEK. They are now using CodeRED and just recently, the Mayor was quoted on the local news, stating that CodeRED was a major player in helping the city recover from the recent hurricanes. . CodeRED training takes less than 30 minutes. We have designed the system for the person who might not have had training for the past 2 years. In the event of an emergency, they need to be able to launch a call very quickly. Our system is designed specifically for that. In less than 4 steps you can initiate a call. 4. RELIABILITY CodeRED launched over 6 million calls in a two week span to the Florida cities and counties affected by the recent hurricanes. At no point did the system overload or did the calling speed drop below the 1,000 calls/minute threshold. CodeRED has staff on hand 24 hours a day to field questions and even launch calls for you! If you cannot establish a connection to the Interent, the CodeRED team can launch a call to your citizens. With over 100 city and county customers, CodeRED has NEVER lost a client. We have a 100% client renewal rate. If you own a PC-based system and a child is kidnapped, what would you do if the system didn't work? Or even worse, what if you forgot how to launch a call (which recently happened to a large city in the Midwest)? You could find yourself standing in front of a "black box dialer"with a screwdriver in one hand and a floppy disk in the other, trying to fix it or figure out how to use it. Meanwhile, the little girl that was kidnapped is already 2 counties down the interstate. CONCLUSION A server-based solution IS NOT (and never will be) an emergency notification system. It is nothing more than a community notification system. CodeRED is a true emergency notification system. The speed is what saves lives. CodeRED can also be used as a high-powered community notification system. You get the best of both worlds for one low cost. n Emergency Communications Network Price Quotation Quotation to: Date: Nov. 16. 2004 Deputy Chief Bums Effective 30 days Elgin Police Department Terms: NET 30 City of Elgin, IL Quotation#: 040615 -1. CodeRED Community Notification System Quotation jt m :»:: >... ........ .. :>z..... ea No ::.::;:..::::..:>?:::':::: : ;><:.~ <:: :'':' :;' ::':Code:.: Qttanti: >... Quote Price ...::Q, to 1 Annual CodeRED Service Agreement 2 $;0,000.00 $20,000.00 With in&el two-year term,bW of pre-paid minutes is reptenished each year Li pon the annual ertenslom of contract. 2 System Calling Minutes 57,000 included included 3 TestingMaining minutes 100 included included minutees proMed br testing and training on the czdeRED system. 3 Initial Data Load 1 included lncluded Initial date for geographic area,including customer supplied data. 4 Implementation and Orientation 1 included included Preparrq the system for use. reta0mic trawng to the CodeRED system. 5 User Set up 5 included included Passcodes and isunch codes for users 6 Database Maintenance 1 includea included Annual database mabitenance and tpdate 6 System Maintenance t included included Annual system maintneim Mdudmg a#upgrades Total Quote $20,000.00 Mj `ii :Mlt1t? .`. : iM[rtlFes: : Additional Minutes each $2,500.00 $5,000,00 $10,000.00 ftcks of additional minutes for use with CodeRED . Emergency Communications Network'9 Sunshine Blvd'Ormond Beach 'FL' 32174