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Annual Service Contract - page 31 / 43

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and the final versions 60 days after City review and approval of the draft documents. Any step not completed throws the timeline into disarray. From the beginning OMI failed to complete the very first step of the process.

As a comment, these sections of the Service Contract comprise the guarantees demanded by the City and agreed upon by OMI. It was during the outsourcing process that Mayor Podesto, Mr. Ingraham and Mr. Lewis referenced these sections of the Contract as the guarantees for high quality delivery of services. The residents of Stockton must rely on the City retained employees, under the direction of Municipal Utility Department Director   Mr. Mark Madison, for direct monitoring of the operation of the plant and the maintenance of the managed assets. Entrusting the Municipal Utility to be operated and maintained by a private profit motivated contractor, as if it were their own property, requires disciplined and deliberate methodologies of monitoring. The standard operating procedures, computerized maintenance management system and the Operation and Maintenance Manuals make it possible to monitor, and hold accountable, OMI.

Without strict monitoring processes, the quality of service and the condition of the managed assets could deteriorate quickly. Since the City is currently embroiled in a lawsuit, monitoring at this present time is paramount so as to assure City residents their assets are protected. If the courts rule against the City, vigilant monitoring will ensure that the Municipal Utility will be returned to municipal operation in a condition equal or better than when the Commencement Period began.

The benefit of the maintenance timeline within the Service Contract will provide for the City a baseline for maintenance procedures. OMI has been given the opportunity to develop a schedule of maintenance that will be efficient, effective and serve the City, as well as the terms of the Contract.

Maintenance Operations

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