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11.B.1. ERICSSON Y2K CONTRACT UPGRADE The Board reviewed a Memorandum of March 10, 1999: TO: Honorable Board of County Commissioners THROUGH: James E. Chandler. County Administrator FROM: Doug Wright, Director of Emergency Services �, DATE: March 10, 1999 SUBJECT: Ericsson Year 2000 Upgrade Proposal Contract Update On February 16,1999, the Board of County Commissioners approved the Ericsson Year 2000 Upgrade Proposal and Contract in the amount of $135,633.26 with two changes as recommended by the County Attomey's Office. The two changes were as follows: Item 6. Terms of Payment. Late Charges The change in this item was from net 30 days to 45 days in Paragraph 1, 6.A., 6.B., 6.C., and 6.D. This change was in conformance with the Florida Prompt Payment Act. Item 21. Governing Law This change was based on the language in the Contract wherein the State of Virginia was the venue for any litigation. The County Attorney recommended and the Board agreed that the venue should be the State of Florida The Y2K Contracts were forwarded to Ericsson for signature immediately after Board approval was granted. On February 24, 1999, staff was notified via fax that Ericsson agreed with the proposed change in Item 6, but did not agree with the proposed change for Item 21. Since that time, there has been several phone ells to Ericsson and correspondence has been exchanged in an effort to convince the company to change their position without success. Staffhas been in contact with other counties in the State regarding this issue and verified that the Ericsson contract with Manatee County is the same as that which was proposed for Indian River County. Manatee has also attempted to get Ericsson to change the venue language in Item 21 without success. A letter was received on March 10, 1999, via fax from Susanne Lithander, Vice President and General Manager of Ericssion Private Radio Systems, alluding to the company's reasons for having a single venue for ligitation relating to Y2K issues. Staff submits that since the software and hardware technology is proprietary, there is no other vendor which can provide the Y2K upgrade. Therefore, it appears that due to public safety concerns, there is no option available other than to approve the contract with venue being in the State of Virginia. RECOMMENDATION: Staff recommends the Board approve the Ericsson Year 2000 Upgrade Proposal with the Governing Law and venue being in the State of V irginia so that the Y2K upgrade can be scheduled and installed in a timely manner. MARCH 16, 1999 -77- BOOK '.08 FAGE 692