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Annual Service Contract - page 30 / 43

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(B) City Review and Approval.  The Company shall review and discuss in good faith with the City any aspect of the draft Operation and Maintenance Manuals, and shall deliver the final Operation and Maintenance Manuals to the City within 60 days following completion of review and approval by the City.  The Company shall keep the Operation and Maintenance Manuals current and shall supply the City with appropriate updates, supplements or revisions thereto annually or at any earlier time that a material change to the Operation and Maintenance Manuals is made, to be reviewed and approved in accordance with the procedures described in this Section.  Such updates shall preserve the standards set forth in the initial Operation and Maintenance Manuals.  Notwithstanding any such review and approval by and discussion with the City, the Operation and Maintenance Manuals shall remain at all times the responsibility of the Company.  Neither the review of or approval by, nor the failure of the City to review, comment on, or approve the Operation and Maintenance Manuals shall: (1) relieve the Company of any of its responsibilities under this Service Contract; (2) be deemed to constitute a representation by the City that operating the Managed Assets pursuant to the Operation and Maintenance Manuals will cause the Managed Assets to be in compliance with this Service Contract or Applicable Law; or (3) impose any liability upon the City.

Again, the principle clauses are (1) provide to the City five copies of draft Operation and Maintenance Manuals within 180 days following the Commencement Date, (2) shall deliver the final Operation and Maintenance Manuals to the City within 60 days following completion of review and approval by the City.

The Operation and Maintenance Manuals refer to the parts of the whole. For example, the Managed Assets (the whole) is made up of (the parts) the Main Plant, the Tertiary Plant, the Collections System and Water Distribution, to name a few. The Manuals describe how “the parts” work together for an efficient “whole.”

These Manuals must have City input and review for several reasons:

City owned assets

City money spent for capital improvements

City’s responsibility to assure residents, organizations and governmental agencies that OMI will, in fact, operate within the guidelines of applicable laws.

To review the timeline: (1) establish the standard operating procedures by the Commencement Date; (2) install and maintain a computerized maintenance management system starting 90 days after the Commencement Date; and (3) deliver to the City draft Operation and Maintenance Manuals 180 days after Commencement Date

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