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Annual Service Contract - page 8 / 43

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The presentation of this 2nd Annual Contract Compliance Review is provided for the benefit of the residents of Stockton and those monitoring the Service Contract between the City and OMI. It is noted that in most cases the time frame reference is August 2004 through July 2005 inclusive. Discrepancies in Contract fulfillment may have been met since these dates. For those areas that have not been met, there have been no consequences for OMI. This Contract spells out what is required and the consequences as well. Within the Contract the consequences for non-compliance are minimal. In many cases it may be more cost effective to pay the consequence than to comply with the Contract.

The Service Contract is a single contract covering the operation and maintenance, initial capital improvements, and asset management. This Review focuses on the asset management, and the operation and maintenance. City Staff should be monitoring the ongoing initial capital improvements.

As a mention of format, at the beginning of each review subject some definitions and excerpts from the Service Contract appear. Service Contract information is in Times New Roman font.

Note: Subsequent Annual Contract Compliance Reviews, due to an agreement between the City and OMI-Thames Water Stockton, will follow the City’s fiscal calendar, July through June.

This review has been completed by BBC Consulting at the request of the Concerned Citizens Coalition of Stockton, a community coalition.

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