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Annual Service Contract - page 26 / 43





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Any company can “say” it has the knowledge and skill level to correctly operate the Stockton Municipal Utility. The real proof is in “walking the talk.” The operation, ongoing maintenance and repair and replacement are covered, in detail, in Article V & VIII, as well as Appendices 4, 6 & 7. For the stakeholders of the Municipal Utility this is the most important set of provisions within the Service Contract.

There exists in the Service Contract a timeline. For some it may be as hidden as the Knights Templar treasure, but when the pieces of the puzzle are laid together, the Service Contract has clarity.  A previous section of this Review, discussed the importance of qualified staff. It was also mentioned that the staff needed to be knowledgeable about the Stockton facility. It is safe to say that no two wastewater treatment plants or water distribution systems are alike. Each has its own variations and uniqueness. Institutional knowledge about Stockton’s facility is important.

Here is the timeline of events required by the Service Contract. It cannot be stressed enough that OMI agreed to all the conditions of the Service Contract. Without specific written documentation (i.e., CAMs) that clarify interpretations or change Contract requirements, the City and OMI can be held in violation of the Service Contract.

Appendix 4 is titled Transition Plan Standards. These are all the requirements that were to be completed prior to Commencement Date. This Appendix in theory gave the City an opportunity to actually “see” that OMI had the capability to perform the Contract standards. It provided a safe, low cost exit opportunity for the City if OMI could not meet the strict Contract standards. Appendix 4, 2.0 Specific Transition Services states:

“The Company's Project Transition Manager and O&M Startup and Transition Manager will be in place on the Contract Date in order to implement the Transition Plan.  

From the Contract Date to, and including, the day preceding the Commencement Date, the Company shall be responsible for meeting the requirements of Section 4.1 of the Service Contract…”

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