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13-0601_PORTFORD SOLUTIONS_Notice of Terminiation sha PattersonRUTAN Direct Dial:(714) 662-A663 RUTAN & TUCKER; LLP E-mail:apaterson zrL1tan.00m August 25,2014 VIA MESSENGER Portfond Solutions 9641 Irvine Center Drive Irvine, CA 92618 Ann: Bruce Bolton Ike: Personal Services Agreement between City of San Juan Capistrano and Portford Solutions for DocuNECT Solution --Notice of Material Breach of Agreement and Notice of Termination Dear Mr. Bolton: This office serves in the capacity of City Attorney for the City of San Juan Capistrano ("City"). On behalf of the City, notice is hereby given to Portford Solutions ("Consultant") that ek'cctive as of August 25, 2014, the City has elected to terminate the Personal Services Agreement, dated as of June 1, 2013, by and between the City and Consultant (the "Agreement"). Under the "Scope of Work" incorporated into the Agreement as Exhibit "A," Consultant was obligated to fully migrate the City's electronic document management system to "DocuNECT v,4.6" (the "System") by January 16, 2014 with the Public Portal implemented by July 1, 2014. This process has been delayed multiple times, and the product Consultant ultimately delivered is not the product that was promised to the City in that: 1. The"basic" search function produces different results depending on which part of the System the search is used to perform the search (the results of a search should be the swine no matter where it is performed); 2. The"global search function" on the System's dashboar(l does not work; 3. The System repeatedly "times out" during searches, requiring the user to log back in or start the search over; 4. The System does not allow users to preview documents after they are scanned (because it is not compatible with Adobe X Pro v.10); 5. Many of the documents that were migrated to the System are missing pages; and 611 Anton Blvd, Suits 1400, Costa Mesa, CA 92626 PO Box 1950, Costa Mesa, CA 92628-1950 1 714,641.5100 1 Fax 714.546.9035 2499;028428-0002 Orungo County I Palo Alto I www,rutan.com 73732M.1 005114 RUTAN Portfond Solutions August 25, 2014 Page 2 6. Many of the documents that were part of the former document management system were never migrated to the new System (they appear in the new System's index, but the documents themselves are missing). City staff has sent numerous emails notifying Consultant of each of these problems, but Consultant has failed to deliver a System that addresses any of them. Consultant's failure to deliver the System it promised is a material breach of the Agreement. Accordingly, pursuant to the terms set forth in Section 14 of the Agreement, the City has elected to terminate the Agreementfor cause, effective immediately after the expiration of the ten (10) day cure period (i.e., on September 4, 2014). Please be aware that even if Consultant were able and willing to cure this breach within the cure period., the City has also elected to exercise its right to terminate the Agreement without cause, effective thirty (30) days after the date of this notice. The Agreement will therefore terminate at the latest on September 24, 2014, Sincerely, RUTAN & TUCKER, LLP Alisha Nitterson Deputy City Attorney AP cc: N4 aria Morris,City Clerk 24991028428-0002 7373294.!a08125/I4