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HomeMy WebLinkAbout17 - Advanced (Water) Meter Infrastructure Project, Approval of Installation Agreement (Phase 2)Q �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report June 9, 2020 Agenda Item No. 17 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Steffen Catron, Utilities Manager, scatron@newportbeachca.gov PHONE: 949-644-3011 TITLE: Advanced (Water) Meter Infrastructure Project, Approval of Installation Agreement (Phase 2), Project 19W12 Staff is requesting City Council approval to move forward to the next phase of the Advanced Water Meter Infrastructure (Advanced Meter) Project. Advanced Meters, also known as "smart water meters", provide enhanced customer service and leak detection abilities. The City's water meters are also at the end of their useful life and are due for replacement. Staff contracted with Mueller LLC for a pilot, proof of performance, project following an RFP process and now recommend approval of Phase 2 of the project, which includes the replacement of the remaining approximately 26,300 water meters within the City over the next two to three years. RECOMMENDATION: a) Find this work exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; b) Approve a Purchase and Installation Agreement for the Advanced (Water) Meter Infrastructure Project with Mueller LLC for $8,150,000; c) Approve a Grant Assistance Agreement with the US Bureau of Reclamation in the amount of $1,499,000; and d) Authorize the Mayor and City Clerk to execute the Agreements. FUNDING REQUIREMENTS: The 2019 Water Master Plan, the 2019 Water Rate Study and the Capital Improvement Program all budgeted for this project. The current Capital Improvement budget includes sufficient water enterprise funding for this project. It will be expensed from the Capital Improvement Fund to the City Council approved Capital Improvement Project, No. 19W12. 17-1 Advanced (Water) Meter Infrastructure Project, Approval of Installation Agreement (Phase 2), Project 19W12 June 9, 2020 Page 2 The expenditures for the $8,150,000 contract will be phased over two to three years and budgeted by fiscal year based on the projected schedule. Budget Summary: Original Budget: 2019 Water Master Plan & Rate Study Estimate Mueller Agreement: (rounded) Purchase and Installation Agreement Base cost Bonding (Performance, Labor & Materials) Contingency (additions or unforeseen conditions) Other costs: (rounded) Proof of Performance Phase (Mueller): Misc. expenditures, billing system changes, etc. Sales tax on materials (7.75%) Meter boxes & lids '• :•• 111 $7,837,000 $ 157,000 $ 156,000 Total: $8,150,000 $ 192,000 $ 50,000 $ 375,000 $ 890,000 Total all -in project expenditures (including Proof of Perf & Misc.) $9,657,000 Proposed AMI project budget: Original Fiscal Year 2018-19 & 2019-20 CIP allocation: $3,300,000 Fiscal Year 2020-21 proposed CIP budget: $3,257,000 Estimated Fiscal Year 2021-22 CIP budget: $3,100,000 WaterSmart Grant (Credit towards 2021-22 budget): ($1,499,000) Total Water Fund Expenditures for Advanced Meter Project $8,158,000 The estimated replacement cost for the traditional manually read water meters is approximately $5,000,000. Currently, the annual meter reading services cost is approximately $325,000; in comparison, the ongoing annual technology maintenance fees with new Advanced Meters is estimated to be $50,000. DISCUSSION: Executive Summary • The City's water meters are due for replacement and staff recommends that they be replaced with proven Advanced Meter technology, a long-term system investment. • Staff has prepared for this cost and transition through the Water Master Plan, the Water Rate Study and through the successful completion of the Proof of Performance stage. • The customer service abilities and customer access of information is unmatched with Advanced Water Meters. Customers and City staff will have immediate access to water use for information and decisions. 17-2 Advanced (Water) Meter Infrastructure Project, Approval of Installation Agreement (Phase 2), Project 19W12 June 9, 2020 Page 3 • Advanced Meters provide proven property leak detection notifications, allowing property owners to make repairs quickly. • The $1.5 million Federal Grant provides additional value to the project. Background The City's water system utilizes approximately 26,500 meters to measure and quantify water usage for the residential and commercial accounts in Newport Beach. Meter quantities regularly change as development and redevelopment occurs in the City. The majority of these meters are read manually, are over 20 -years old, and have reached their useful life with progressive decay of accurate reading. As agencies come across the need to replace their meters, many have transitioned to an Automated Meter Infrastructure known as Advanced Meters or AMI. Advanced Meters, also known as smart meters, is a modernized water metering system using proven communication technology. These meters use a low -powered communication device (unlicensed 900MHz radio frequency) that is integrated with a new water meter to transmit once per day water usage information to the City's database. Advanced meters improve the City's ability to manage water system resources and provide valuable tools to residents and businesses. The Advanced Meter project would replace or retrofit all City water meters with advanced meter technology. Some of the benefits of Advanced Meters are to allow City staff and water customers direct access to water usage information. Specifically, after a new Advanced Meter is installed and a customer registers with the City's online water use portal, users can research their usage, enabling them to better understand and make informed decisions about household water use and their associated water bill. Another important feature is that Advanced Meters can detect water leaks for homeowners so these leaks can be identified and repaired in a more timely manner by the homeowner. This system also provides the City's customer service staff additional real-time meter reading access to be more efficient and provide better customer service. Additional project related information was presented to City Council on November 28, 2017, Item No. SS3, May 22, 2018, Item No. 8, January 22, 2019, Item No. 15, and on April 9, 2019. The Advanced Meter Project was also presented during the last two years of Capital Improvement Program discussions, and as part of the 2019 Water Master Plan and 2019 Water Rate Study presentations. Selection Process Staff issued a Request for Proposals (RFP) to vendors for a complete Advanced Meter system and Mueller LLC was recommended by the evaluation panel as the preferred vendor providing the best product, service and lowest price value to the City. (The RFP process is further described in Agenda Item No. 15 of the January 22, 2019 City Council meeting.) 17-3 Advanced (Water) Meter Infrastructure Project, Approval of Installation Agreement (Phase 2), Project 19W12 June 9, 2020 Page 4 In addition to Mueller's strong experience, qualifications, references, and proven technology, their proposal comes with a dedicated Network Operations Center and support team to monitor their meter network system to optimize performance for the life of the project. This provides additional customer support to City staff for all matters related to the system. Based on this selection process, Mueller was selected for the initial proof of performance phase and is recommended for the complete Advanced Meter project. Proof of Performance The Proof of Performance phase installed and tested 25% of the communications system collectors and repeaters, and approximately 200 water meters. This encompassed multiple metering groups including residential, commercial, and irrigation. It also included the installation of the Advanced Meter head -end software, the Meter Data Management System software, the integration of meter data and testing the ability to integrate into the City's water billing system. The intent of this phase was to prove basic end-to-end connectivity, integration, leak detection capabilities, instantaneous meter reading and the general usability of the proposed system. It also allowed staff to quantify and address any implementation challenges and better estimate the staff time necessary for full implementation. City staff found the new system easy to use and the access to real-time meter data very helpful. Even though 200 meters represents a small portion of the system, staff was able to easily discuss water usage questions with several customers. During the last several months, staff also detected and confirmed six residential water leaks within 24-48 hours of the leak occurring instead of the current 30-60 days with the direct read meters. These actions saved the residents wasted water and prevented or reduced private property damage. City staff also confirmed that the replaced meters better accounted actual water use, which reduces the amount of water system losses and waste. Grant Funding Staff applied twice for a grant through the US Federal Department of the Interior, Bureau of Reclamation (USBR). This grant is known as the Water and Energy Efficiency "WaterSMART" grant pursuant to the Secure Water Act. (The grant application is further described in Agenda Item No. 8 of the City's May 22, 2018 and April 9, 2019 City Council meetings.) Staff is pleased to announce that the Bureau of Reclamation determined the City's Advanced Metering Infrastructure Project with Mueller LLC was among those applications receiving the highest ratings. This project was determined to aid in water conservation and water use efficiency, improved water management, and energy savings. The Bureau awarded nearly $1.5 million in matching funds to the City, which substantially reduces the overall project cost. 17-4 Advanced (Water) Meter Infrastructure Project, Approval of Installation Agreement (Phase 2), Project 19W12 June 9, 2020 Page 5 Implementation The entire Advanced Meter Implementation project is estimated to take 2.5 years to complete. This includes the installation of the remaining 19 collectors and 17 repeaters to be placed on City -owned streetlights, and 26,300+ smart water meters. Software installation is complete and billing integration would continue as the meters are installed. A dedicated City staff meter valve repair crew would work in conjunction with the Mueller meter installers. Prior to installation, advanced notice will be sent to properties within a 200' radius of the proposed collectors and repeaters. Additional outreach includes notices to be sent to individual properties prior to their meters being replaced. Meter replacements typically take 30 minutes, with the water shut off for only 15-30 minutes. Staff supports and recommends this Advanced Meter Project and has been preparing and budgeting for its implementation over the last two years. Advanced Meters will allow the City to implement a full distribution system technology to provide customers with detailed water usage information, high-water usage and leak alerts. The project will reduce real water system losses and increase water use efficiency and conservation resulting in improved water management. ENVIRONMENTAL REVIEW: Staff recommends that the City Council find this work exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301, Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the proposed scope of work involves an installation of software equipment to selected and existing use City -water meters and street lights for testing and data gathering purposes, in order to provide automation, improved customer service and service response time. This section allows the operation, repair, maintenance and minor alteration of existing facilities of both investor and publicly -owned utilities used to provide electric power, natural gas, sewerage, or other public utility involving negligible or no expansion of use. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Purchase, Installation, and Maintenance Agreement with Mueller LLC Attachment B — Bureau of Reclamation Grant Assistance Agreement 17-5 ATTACHMENT A PURCHASE, INSTALLATION, AND MAINTENANCE AGREEMENT WITH MUELLER SYSTEMS, LLC FOR AUTOMATED METER INFRASTRUCTURE FOR CITY WATER METERS THIS PURCHASE, INSTALLATION, AND MAINTENANCE AGREEMENT ("Agreement") is made and entered into as of this 9th day of June, 2020 ("Effective Date") by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and Mueller Systems, LLC, a Delaware limited liability company ("Contractor"), whose principal place of business is 1200 Abernathy Road NE, Suite 1200, Atlanta, Georgia 30328 and is made with reference to the following: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Contractor to provide an Automated Meter Infrastructure ("AMI") solution as detailed in the Scope of Work attached hereto and incorporated herein as Exhibit "A" ("Project"), consisting of approximately twenty-six thousand six hundred eighty (26,680) meters following the initial proof of performance and related infrastructure. C. The United States Bureau of Reclamation ("USBR") has awarded the City of Newport Beach a "Water Smart" grant in the amount of One Million Four Hundred Ninety Nine Thousand Dollars and 001100 ($1,499,000.00) ("Grant") to assist in offsetting the total cost of the Mueller Advanced Metering Infrastructure Project; the USBR has identified water savings capabilities with the AMI Project that necessitated the awarding of the grant to the City. D. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by the City for the Project, is familiar with all conditions relevant to the performance of services and has committed to perform all work required for the price specified in this Agreement. E. City has solicited and received a proposal from Contractor, has reviewed the previous experience and evaluated the expertise of Contractor, and desires to retain Contractor to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SCOPE OF WORK 1.1 Contractor shall provide all tangible items and perform all the services described in the Scope of Work attached hereto as Exhibit "A" and incorporated herein by reference. As a material inducement to the City entering into this Agreement, Contractor 17-6 represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it will perform all Services in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used under reasonably competent practitioners of the same discipline under similar circumstances and that all materials will be of good quality. 1.2 Contractor shall perform everything required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services necessary for the Project. 1.3 In consideration of the payment of the purchase price and subject to all the terms and conditions hereof, Contractor shall furnish, install, and maintain an AMI solution (hereinafter referred to as "Solution"), as listed and set forth in the Scope of Work attached hereto as Exhibit "A" ("Work" or "Services"). 2. TIME OF PERFORMANCE 2.1 Time is of the essence in the performance of services under this Agreement and Contractor shall complete the Project installation, implementation and acceptance testing within the time set forth in Exhibit "A". The failure by Contractor to meet this schedule may result in termination of this Agreement by City as outlined in Section 18 below. 2.2 Force Majeure. The time period(s) specified in Exhibit "A" for performance of services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including but not restricted to acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, and/or acts of any governmental agency, including the City, if Contractor shall within ten (10) days of the commencement of such delay notify City in writing of the cause of the delay. This section shall also include causes in relation to the existing national COVID-19 pandemic. City shall ascertain the facts and extent of delay,and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the City such delay is justified. City's determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in performance of this Agreement, however caused, Contractor may extend the Agreement pursuant to this Section. 3. TERM Unless earlier terminated in accordance with Section 19 of this Agreement, this Agreement shall continue in full force and effect until completion of the services agreed to herein or until June 30, 2023, whichever occurs first. A �iii1 iri I, :1.6'%% 111 IQ i• 4.1 City shall pay Contractor for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates as set forth in Exhibit "B" attached hereto and incorporated herein by reference. Mueller Systems, LLC Page 2 17-7 Contractor's compensation for all Work performed in accordance with this Agreement, including all reimbursable items, subcontractor fees, for a base contract amount of Seven Million Eight Hundred Thirty Seven Thousand One Hundred Seventy Three Dollars and 141100 ($7,837,173.14), and 2% allocation for bonding in the amount of One Hundred Fifty Six Thousand Seven Hundred Forty Three Dollars and 461100 ($156,743.46), and a 2% contingency in the amount of One Hundred Fifty Six Thousand Eighty Three Dollars and 401100 ($156,083.40), which shall not exceed Eight Million One Hundred Fifty Thousand Dollars and 001100 ($8,150,000.00) without prior written amendment authorization from City. City shall not be obligated to purchase all items at such quantities provided in Exhibit "B". No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.2 Contractor shall submit monthly invoices to City describing the Work performed the preceding month. Contractor's bilis shall include the name of the person who performed the Work, a brief description of the Services performed and/or the specific task in the Scope of Services to which it relates, the date the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Contractor no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.3 City shall reimburse Contractor only for those costs or expenses specifically identified in Exhibit "B" to this Agreement or specifically approved in writing in advance by City. 4.4 Contractor shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates as set forth in Exhibit "B." 4.5 Contractor shall provide City with a minimum fourteen (14) days' notice of its dates of installation to enable the City to prepare the installation sites for the Solution in accordance with the instructions of Contractor. The City shall complete site preparation prior to the date of installation of the Solution, and the site shall thereafter be available for inspection and approval. All costs and expenses related to the site preparation shall be at the sole expense of City. City's site preparation shall include, but is not limited to: (a) Preparing maps and scouting potential data collector locations; and (b) Performing meter box surveys. 4.6 The reporting requirements of City's USBR Grant are attached hereto as Exhibit "C" and incorporated herein by reference. Contractor shall use its best efforts to coordinate with City to assist in City's obligations to USBR in relation to the Grant. 4.7 Taxes: The fees payable to Contractor are set forth in the Schedule of Billing Rates included within Exhibit B do not include any taxes, including, without limitation, sales, Mueller Systems, LLC Page 3 17-8 use or excise tax. City and Contractor specifically agree and designate the point of sale and place of delivery for any and all taxable purposes under this Agreement, including, but not limit to, all Services or Work, shall be the City of Newport Beach 100 Civic Center Dr., Newport Beach, CA 92660. Furthermore, under the City's Direct Payment Exemption permit number SR EAA 24-089475 DP, the City will self -accrue its Use Tax obligation to the California State Board of Equalization within thirty (30) days of delivery of the products to the City. If only partial delivery of the taxable items in Exhibit B are received by the City, the City will only pay the California State Board of Equalization the amount of Use Tax due on the value of the items delivered in accordance with the prices set forth in Exhibit B. City shall provide Contractor with a copy of the City's Direct Payment Exemption permit within thirty (30) days of the Effective Date. 5. PROJECT MANAGER Contractor shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the term of the Agreement. Contractor has designated Kevin Cornejo to be its Project Manager. Contractor shall not remove or reassign the Project Manager without the prior written consent of City. City's approval shall not be unreasonably withheld. 6. ADMINISTRATION This Agreement will be administered by the Utilities Department. City's Utilities Manager or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. 7. TYPE AND INSTALLATION OF MATERIALS/STANDARD OF CARE 7.1 Contractor shall use only the standard materials described in Exhibit "A" in performing services under this Agreement. Any deviation from the materials described in Exhibit "A" shall not be installed unless approved in advance by the City Project Administrator. 7.2 All of the services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 8. RESPONSIBILITY FOR DAMAGES OR INJURY 8.1 City and all officers, employees and representatives thereof and all persons and entities owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services shall not be responsible in any manner for: any loss or damage to any of the materials or other things used or employed in performing the Project or for injury to or death of any person as a result of Contractor's performance of the services required hereunder; or, for damage to property from any cause arising from the performance of the Project and/or Services by Contractor, or its subcontractors, or its workers, or anyone Mueller Systems, LLC Page 4 17-9 employed by either of them, unless caused by the City's negligent acts, omissions, or willful misconduct. 8.2 Contractor shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions or from any cause to the extent arising from the negligent acts, omissions, or willful misconduct of the Contractor or any subcontractor or supplier selected by the Contractor. 8.3 To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Agreement (collectively, the "Indemnified Parties") from and against: (1) any and all third - party claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liability, costs and expenses (including, without limitation, reasonable attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner directly related to Contractor's negligent performance of this Agreement or activities conducted on the Project (including the negligent and/or willful acts, errors and/or omissions of Contractor, its principals, officers, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly by any of them or for whose acts they may be liable or any or all of them); (2) use of improper materials in performing this Project and/or (3) any and all claims asserted by Contractor's subcontractors or suppliers on the Project, and shall include reasonable attorneys' fees and all other costs incurred in defending any such claim. Contractor's liability in this Subsection and this Agreement shall be limited to the maximum amount of its insurance coverage for claims arising out of acts performed under this Agreement. Contractor shall not be held responsible for consequential or special damages, or claims made to City for such consequential or special damages. Nothing herein shall require Contractor to indemnify City from the negligence or willful misconduct of City, its officers or employees. 8.4 Intellectual Property Indemnity - Contractor shall defend, indemnify and hold City, its agents, officers, representatives, employees and City Council, boards and commissions harmless from any proceeding brought against City for any intentional or unintentional violation of the intellectual property rights of any third party with respect to Solution deliverables purchased in this Agreement This indemnification shall include, but is not limited to, infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Contractor's deliverables provided under this Agreement. 8.5 Contractor shall perform all Project work in a manner to minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. Contractor shall perform work as specified in Exhibit "A" to limit impacts to traffic during the system installation period. Contractor shall be liable for any private or public property damaged during the performance of the Project work. Mueller Systems, LLC Page 5 17-10 8.6 Contractor shall provide traffic control and access in accordance with Section 7-10 of the State Standard Specifications and the latest edition of the Work Area Traffic Control Handbook (WATCH), as published by Building News, Inc. 8.7 Traffic control and detours shall at a minimum meet the following requirements: 8.7.1 Emergency vehicle access shall be maintained at all times. 8.7.2 The locations and wordings of all barricades, signs, delineators, lights, warning devices, parking restrictions, and any other required details shall ensure that all pedestrian and vehicular traffic will be handled in a safe manner with a minimum of inconvenience to the public. 8.7.3 All advanced warning sign installations shall be reflectorized and/or lighted. 8.7.4 Traffic signal system shutdown or planned "red flash" shall be limited to 4 -hour periods between the hours of 9:00 a.m. and 3:00 p.m. on weekdays (Monday through Thursday), except as authorized by the Project Administrator. 8.7.5 "STOP AHEAD" and "STOP" signs shall be furnished by the Contractor and shall conform to the provisions in Section 12-3.06, "Construction Area Signs," of the State Standard Specifications except that the base material for the signs shall not be plywood. Two "STOP AHEAD" signs and two "STOP" signs shall be placed for each direction of traffic. Locations of the signs shall be per the WATCH manual. 8.8 Nothing in this Section shall be construed as authorizing any award of attorney's fees in any action to enforce the terms of this Agreement, except to the extent provided in Section 8.3 above. 8.9 The rights and obligations set forth in this Section shall survive the termination of this Agreement. City has retained Contractor as an independent contractor and neither Contractor nor its employees, nor any of its subcontractors, are to be considered employees of the City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment shall accrue to Contractor or its employees. 10. COOPERATION Contractor agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Contractor on the Project. Mueller Systems, LLC Page 6 17-11 11. INSURANCE Without limiting Contractor's indemnification of City, and prior to commencement of work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit "D," and incorporated herein by reference. 12. BONDING 12.1 Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement: a Labor and Materials Payment Bond in the amount of one hundred percent (100%) of the total amount to be paid Contractor as set forth in this Agreement and in the form attached hereto as Exhibit "E" which is incorporated herein by this reference; and a Faithful Performance Bond in the amount of one hundred percent (100%) of the total amount to be paid Contractor as set forth in this Agreement in the form attached hereto as Exhibit "F" which is incorporated herein by this reference. 12.2 The Labor and Materials Payment Bond and Faithful Performance Bond shall be issued by an insurance organization or surety (1) currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, (2) listed as an acceptable surety in the latest revision of the Federal Register Circular 570, and (3) assigned a Policyholders' Rating A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide: Property -Casualty. 12.3 The Contractor shall deliver, concurrently with execution of this Agreement, the Labor and Materials Payment Bond and Faithful Performance Bond, a certified copy of the "Certificate of Authority" of the Insurer or Surety issued by the Insurance Commissioner, which authorizes the Insurer or Surety to transact surety insurance in the State of California. 13. PREVAILING WAGES 13.1 Pursuant to the applicable provisions of the Labor Code of the State of California, not less than the general prevailing rate of per diem wages including legal holidays, overtime work, fringe benefits and contributions for each craft or type of workman needed to execute the work contemplated under the Agreement shall be paid to all workmen employed on the work to be performed by the Contractor and any subcontractor, insofar as the provisions are applicable to the work being performed. Attached hereto as Exhibit "H" are the provisions of California Labor Code Sections 1771, 1775, 1776, 1777.5, 1813 and 1815. These provisions are incorporated by reference into this Agreement and Contractor agrees to comply with these provisions. 13.2 In accordance with the California Labor Code (Sections 1770 et seq.), the Director of the Department of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the Agreement. Contractor is required to obtain the applicable prevailing wage determinations from the Department of Industrial Relations and post the applicable prevailing rate of per diem wages. Mueller Systems, LLC Page 7 17-12 It shall also be the obligation of the Contractor or any subcontractor under him/her to comply with all State of California labor laws, rules and regulations and the parties agree that the City shall not be liable for any violation thereof. 13.3 Unless otherwise exempt by law, Contractor warrants that Contractor and any subcontractors who were listed on the bid proposal for the Services are registered and qualified to perform public work. Contractor further warrants that Contractor is currently registered and qualified to perform "public work" pursuant to California Labor Code section 1725.5 or any successor statute thereto and that no contractor or subcontractor will engage in the performance of the Services unless currently registered and qualified to perform public work. 14. SUBCONTRACTING The subcontractors authorized by City, if any, to perform work on this Project are identified in Exhibit "A". Contractor shall be fully responsible to City for all acts and omissions of any subcontractor. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 15. WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Contractor shall not discontinue work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or his/her designee with respect to such disputed sums. Contractor shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 16. CONFLICTS OF INTEREST 16.1 The Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act" and/or Government Code §§ 1090 et seq.,"), which (1) require such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibit such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 16.2 If subject to the Act and/or Government Code §§1090 et seg., Contractor shall conform to all requirements therein. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Contractor shall indemnify Mueller Systems, LLC Page 8 17-13 and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 17. NOTICES 17.1 All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Contractor and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attention: Utilities Manager City of Newport Beach 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658 17.2 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attention: Keith Adkins Mueller Systems, LLC P.O. Box 128 10210 Statesville Boulevard Cleveland, NC 27013 18. CLAIMS 18.1 Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Contractor's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and identified by Contractor in writing as unsettled at the time of its final request for payment. Contractor and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Contractor shall be required to file any claim Contractor may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 18.2 To the extent that Contractor's claim is a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, the Parties agree to follow the dispute resolution process set forth therein. Any part of such "Claim" remaining in dispute after completion of the dispute resolution process provided for in Public Contract Code section 9204 or any successor statute thereto shall be subject to the Government Claims Act requirements requiring Contractor/Consultant to file a claim in strict conformance with the Government Claims Act. To the extent that Contractor's claim is not a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, Contractor shall be Mueller Systems, LLC Page 9 17-14 required to file such claim with the City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 19. TERMINATION 19.1 Termination With Cause - In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of five (5) calendar days, or if more than five (5) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within five (5) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 19.2 Termination Without Cause. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Contractor. In the event of termination under this Section, City shall pay Contractor for services satisfactorily performed and costs incurred in the performance of such services up to the effective date of termination for which Contractor has not previously been paid. In the event of termination under this Section, City shall also pay Contractor for the Solution, associated materials, and hardware delivered to City site under this Agreement that City deems usable. 20. EFFECT OF CONTRACTOR'S EXECUTION Execution of this Agreement by Contractor is a representation that Contractor has visited the Project site(s), has become familiarwith the local conditions under which the work is to be performed, and has taken into consideration these factors in submitting its Project proposal and Scope of Work. 21. WARRANTY 21.1 Contractor warrants to City that the entire Solution to be delivered hereunder will be free from defects in material or workmanship and will be of the kind and quality designated or specified by Contractor in Exhibit "A." The applicable warranties for the Solution are set forth in greater detail in Exhibit "A," Attachment 8, "Warranty Information." If Contractor installs the Solution and associated hardware and materials, or supplies technical directions of installation by Agreement, the warranty period is as provided in Exhibit "A" Attachment 8, "Warranty Information". 21.2 If Contractor -manufactured equipment delivered hereunder does not meet the warranties set forth in Exhibit 'A" and if City promptly notifies Contractor in writing, Contractor shall thereupon correct as specified in Exhibit "A". 21.3 The warranties set forth in Exhibit "A" are exclusive and in lieu of all other warranties, whether written, oral, implied or statutory. Contractor does not warrant any equipment of other manufacture designated by City. Mueller Systems, LLC Page 10 17-15 22. SOFTWARE LICENSE 22.1 Contractor hereby grants to City for the term of this Agreement and for the fees specified in Exhibit B, a limited, non-exclusive, non -transferable license (without the right of further sublicense) to operate, use, and display the software and documentation solely for the purposes of this Agreement in accordance with the End User License Agreement identified in Exhibit "G" ("EULA"), which is hereby incorporated by reference. In consideration of City's payment of the ongoing support and maintenance fees set forth in Exhibit B, Contractor will provide City with an ongoing license of the Software and the maintenance and support services described in the EULA. Exhibit G survives the expiration or termination of this Agreement. 22.2 Contractor hereby agrees to provide monitoring services under the terms and conditions specified in the EULA. 23.1 Non -infringement. Contractor represents that to the best of its knowledge the technology embodied in the Solution sold herein does not infringe upon a United States patent or United States copyright in effect as of the Effective Date. 23.2 Authori . Each party represents as follows: (a) that it has full power and authority to execute, deliver and perform its obligations under this Agreement; (b) that there are no actions, proceedings or investigations, pending or, to the best of each party's knowledge, threatened against such parry which may in any manner whatsoever materially affect the enforceability of this Agreement or the rights, duties and obligations of the parties hereunder; and (c) that the execution, delivery and performance of this Agreement will not constitute a breach or default under any agreement, law or court order under which such party is a party or may be bound or affected by or which may affect the rights, duties and obligations hereunder. 23.3 No Other Representations. Each party acknowledges and agrees that it is relying on no representation of the other party except as expressly set forth herein. 24. CONFIDENTIAL INFORMATION. 24.1 Confidential Information. In the performance of this Agreement or in contemplation thereof, the parties and their respective employees and agents may have access to private or confidential information owned or controlled by the other party and such information may contain proprietary details and disclosures. All information and data identified in writing as proprietary or confidential by either party ("Confidential Information") and so acquired by the other party or its employees or agents under this Agreement or in contemplation thereof shall be and shall remain the disclosing party's exclusive property. The recipient of Confidential Information shall use all reasonable efforts (which in any event shall not be less than the efforts the recipient takes to ensure the confidentiality of its own proprietary and other confidential information) to keep, and have its employees and agents keep, any and all Confidential Information confidential, and shall not copy, or publish or disclose it to others, nor authorize its employees, agents or anyone else to copy or disclose it to others, without the disclosing party's written approval; nor shall the recipient make use Mueller Systems, LLC Page 11 17-16 of the Confidential Information except for the purposes of executing its obligations hereunder, and (except as provided for herein) shall return the Confidential Information and data to the first party at its request. The City's duty to maintain confidentiality as described hereunder shall be subject to the laws of the State of California. 24.2 Excluded Information. The foregoing conditions will not apply to information or data which is, or which becomes generally known to the public by publication or by any means other than a breach of duty on the part of the recipient hereunder, is information previously known to the recipient, is information independently developed by or for the recipient or is information generally released by the owning party without restriction. 24.3 Right to Injunctive Relief. Because of the unique nature of the Confidential Information, the parties agree that each party may suffer irreparable harm in the event that the other party fails to comply with any of its obligations under this Section, and that monetary damages may be inadequate to compensate either party for such breach. Accordingly, the parties agree that either party will, in addition to any other remedies available to it at law or in equity, be entitled to seek injunctive relief to enforce the terms of this Section. Cr�•��]5'I . I � iJ~9 : I I 1*7 � �I�Z�1�J ►', I �. � �y Each and every report, draft, map, record, plan, document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications (hereinafter "Documents"), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Additionally, all material posted in cyberspace by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other parry. Contractor shall, at Contractors expense, provide such Documents, including all logins and password information to City upon prior written request. IZ�_��yEel `• I►IF,I: I.I� This Agreement shall not be assigned by any party, or any party substituted, without prior written consent of the City and the Contractor. 27. STANDARD PROVISIONS 27.1 Recitals. City and Contractor acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 27.2 Compliance with all Laws. Contractor shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Contractor shall conform to applicable City, Mueller Systems, LLC Page 12 17-17 county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 27.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 27.4 Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 27.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 27.6 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 27.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. 27.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 27.9 Controlling Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 27.10 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, age or any other impermissible basis under law. 27.11 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 27.12 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Mueller Systems, LLC Page 13 17-18 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATT ,7RNEY'S OFFICE Date: ,ZU By: Aaron C. Harp r City Attorney ATTEST: Date - in CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Will O'Neill Mayor CONTRACTOR: MUELLER SYSTEMS, LLC a Delaware limited liability company Date: in Leilani I. Brown John DeYarman City Clerk VP 1 GM, Metrology in Chason Carroll Assistant Secretary [END OF SIGNATURES] Attachments: Exhibit A — Scope of Work Exhibit B — Schedule of Billing Rates Exhibit C — Reporting Subawards and Executive Compensation Exhibit D — Insurance Requirements Exhibit E — Labor and Materials Payment Bond Exhibit F — Faithful Performance Bond Exhibit G — EULA Exhibit H — Prevailing Wage Codes Mueller Systems, LLC Page 14 17-19 EXHIBIT A SCOPE OF WORK Mueller Systems, LLC Page A-1 17-20 CITY OF NEWPORT BEACH AGREEMENT WITH MUELLER SYSTEMS AUTOMATED METER INFRASTRUCTURE (AMI) PURCHASE, INSTALLATION & MAINTENANCE AGREEMENT EXHIBIT A (SCOPE OF WORK) 17-21 Scope of Work — City of Newport Beach Scope of Work Table of Contents 1. Introduction..........................................................................................................................3 2. Scope of full AMI System........................................................................................................3 3. Hardware Delivery .................................................................................................................5 4. Hardware Installation............................................................................................................5 4.1.Network Equipment...............................................................................................................5 4.2.Meter and MiNode.................................................................................................................5 5. AMI Software Integration - Mi.Host.....................................................................................16 6. AMI Software Integration — Consumer Portal.......................................................................16 7. Mueller Systems' Responsibilities.........................................................................................17 8. City's Responsibilities...........................................................................................................17 9. Project Communications and Status Updates.......................................................................18 10. Project Schedule..................................................................................................................18 11. Training...............................................................................................................................19 12. System Acceptance..............................................................................................................19 13. Final Completion..................................................................................................................20 Attachments: I. Propagation Study Case 20954 dated 3 29 2019 2. N/A 3. N/A 4. Endpoint Acceptance Plan 5. Schedule of Values 6. Utility Roles and Responsibilities 7. Training Agenda 8. Warranty Information 2 17-22 Scope of Work - City of Newport Beach 1. Introduction This Scope of Work document serves as an overview of the work to be performed for the City of Newport Beach ("City") to complete the deployment of the Mi.Net AMI System. This Scope of Work outlines the responsibilities of Mueller Systems, LLC (also referred to as "Contractor") and the City required for a successful implementation of an Advanced Metering Infrastructure ("AMI") system encompassing approximately 26,309 -meter services, following the initial proof of performance ("POP") phase for implementing an AMI system on 250 water meters. 2. Scope of full AMI System The hardware that makes up the Mueller Systems' Mi.Net AMI system that is to be installed within the City will consist of the following sizes and quantities. These are approximate and actual values may differ. Any differences in quantities not requiring an amendment to the Agreement will be handled via change order. A change order shall reflect the mutual written agreement of the parties and the Contractor shall only commence work covered by a change order after the change order is executed and notification to proceed has been provided by the City. 5/8" Meters 16917 3/4" Meters 4 1" Meters 7259 1-1/2" Meters 553 2" Meters 1444 3" Neptune Tru/Flo Compound Meters (Retrofit) 32 3" Neptune HPT Compound Meters (Retrofit) 11 4" Neptune Tru/Flo Compound Meters (Retrofit) 52 4" Neptune HPT Compound Meters (Retrofit) 9 4" Neptune Proctectus III Compound Meters 1 6" Neptune Tru/Flo Compound Meters (Retrofit) 13 6" Neptune HPT Compound Meters (Retrofit) 3 6" Neptune Proctectus III Compound Meters 2 8" Neptune HPT Compound Meters (Retrofit) 7 8" Neptune Proctectus III Compound Meters 2 All meters, registers, nodes and boxes, etc. will be installed by Mueller Systems. All products, including third party products such as boxes and lids, will be approved by the City prior to purchase and installation by Mueller Systems. The AMI network and host software will be installed and managed by Mueller Systems. 17-23 Scope of Work - City of Newport - All of the Mi.Node Water meter radios will be configured by default as follows o Hourly reading (Mi.Node interrogates registerhourly) Transmit Frequency: Daily Upload • Readings in the Mi.Net System will be in cubic feet • Readings passed to the billing software will be in hundred cubic feet (HCF) (Fixed "0") • Standard Mueller Systems' Mi.Net Water Alert configurations - The data for the AMI Network will be stored on a server hosted by Mueller Systems. The system will have the following capabilities: (some of these activities were completed in the Pilot phase). o Basic AMI ■ Utility User Interface ■ List of Installed meters with last uploaded reading ■ Deployment wide consumption graph ■ Meter Details page for each meter ■ Basic Graphing of Consumer Consumption ■ Customer Information (Automatically Imported as Read only) ■ Account Management (Read only - imported from existing billingsystem) • Hourly readings on all meters o Billing Interface — meter data passing from Mi.Host to the City's billingsystem. o Customer Information System ("CIS") Interface - Weekly importing of customer updates from City's billingsystem o Meter reading schedule — daily upload of consumption and hourly readings, on demand upon request o Network Maintenance, and Troubleshooting o Mi.Host User Interface o Mi.Net Mobile Trimble Handheld(s) with installation Radio(s) o Network Management Tool ("NMT') 4 17-24 Scope of Work - City of Newport 3. Hardware Delivery Hardware delivery will be scheduled at the time of order entry. Hardware delivery will be incorporated into the Project schedule once it is available. City will issue purchase orders for product in order for delivery in time to meet installation schedule. A minimum of 8 weeks' worth of product will be onsite during meter installations to avoid stock out. Shipment orders to be placed with full truck capacity to minimize freight costs, unless City's project administer determines partial orders must be shipped immediately. If requested to ship immediately the parties will review and agreed upon shipping charges. Products, software and services will be billed in accordance with the Schedule of Values in Attachment 5 hereto. Mueller Systems recommends that the City maintains stock of a minimum of 1% total project volume for spares. 4. Hardware Installation 4.1. Network Equipment A preliminary network design has been completed based on the inputs provided to Mueller Systems and is attached as Attachment 1. Mueller Systems will conduct final site surveys and develop a Final Network Design following contract execution. Both parties will review network design inclusive of locations, assumptions, etc. prior to installation of network equipment. If any City assets are needed, City approvals will be requested, and the design adjusted accordingly. Mueller Systems will request City approval of the Final Network Design if any City assets are required for coverage. Mueller Systems will complete the installation of all required Collectors and ancillary equipment no later than 90 days from Effective Date for locations where Data Collectors have been sited_ Descriptions of the proposed sites, equipment, and placements are in the Propagation Study are in Attachment 1. The installed network will be tested for coverage as part of the Project. 4.2. Meter and MiNode Meters and MiNode equipment will be installed by Mueller Systems subcontractor, and will be managed by the Mueller Systems project team. Mueller Systems will provide training for installation teams on the use of MiNet specific installation tools and procedures. Installation Procedures: Community Outreach and Customer Communication - Seven (7) days prior to meter installation a door knock and door hanger (approved by City's project administrator) will be left with the resident indicating time of install, frequently asked questions, and important phone numbers for questions to be answered. Installers Appearance - Installers must wear safety vest with description "AMI Meter Installer / Contract Worker for City of Newport Beach" 17-25 Scope of Work - City of Newport - Vehicle must indicate they are a "Contract Worker for the City of Newport Beach" Installer notification at time of meter installation - Knock on the homeowner's door. If the homeowner is home, alert them of the meter change out that will take place. - Installation tech will perform the change out. - After completion, tech will provide the homeowner with contact information, in the form of a door hanger, should there be an issue that comes up after installation. - If the homeowner is not home, a door hanger will be left after the meter installation is completed informing the customer of what took place. - All customer complaints and field escalations will be handled by installation team initially then referred back to City if required. Additional Suggestions for City - Consumer water bill inserts one month prior to meter installations - Website outreach -Frequently Asked Questions (FAQ) section on website for AMI Project - Social Media- Utility Facebook/Twitter page alerting residents of the meter project - Meetings with Homeowners Associations (HOA's) to inform and answer questions Daily meet time 7:30am Designated Site Storage- Storage of project materials to be provided by City. Installer will manage and track inventory. Consultant's Project team will keep a copy of all sign out sheets of material for Installer records. Old meters are to be returned to the box where the new meters were taken from. The installer will write the address, date and initials on the outside of the box of each meter stored in that box. The boxes are to be stacked neatly back on a pallet addresses facing out in designated area neatly. Place the caps from the new meter back on the ends of the old meters. Clear all old tags and trash from the boxes and discard in designated trash areas before stacking the boxes. Meter Installation Meters will be installed by cycle/route order to be determined jointly between the City staff and the Mueller Project Manager, following the meter reading sequence that's agreed upon by all parties. Mueller Systems and Installer will work with utilityto evaluate route efficiency. Most meters are outside in a pit location, so appointments are unnecessary. Mueller Systems assumes that less than 0.5% of residential accounts will require an appointment. If the requirement for residential appointments is above this rate, then the parties will discuss options to resolve. The following steps are the general installation plan, identified potential problems, and resolution suggestions. After hours work requests will be agreed upon in advance of work being perform between Mueller Systems and the City of Newport Beach. Installer Staffing Plan - Project duration established for 36 months, Installer's project staff will include: Install Project 6 17-26 Scope of Work - City of Newport Manager and a Field Supervisor with approximately two to three installation technician and quality resources for project duration. Project duration established for 18 months, Installer project staff will include: - Install Project Manager —Oversee all project operations and planning Assistant Install Project Manager- Support PM Daily Operations - Field Manager- Oversee all Field Activity and assist with field issues Meter Installers - Individuals who are conducting the field activities of installing the meters - QC- QC person to field inspect all work the day after install Lid Specialist- Drilling Lids (if required) Installation Pro'ect Team -- Roles and Responsibilities Install Project Manager ("PM") — (7 am — 4 pm) 1. Will oversee the daily operations of the meter installation Project. 2. Deploy daily routes, instruction, inventory and supplies for install, quality control ("QC") and lid drilling teams. 3. Will also distribute send back problem accounts from previous day to be completed by installer before installer starts daily installs. 4. Communicate with designated contacts from Mueller Systems, and City utility department daily to address any previous day's issues. 5. Track route allocation and scheduling with City, Mueller Systems and Installer Project Support. 6. Daily field visits and support to team to audit install quality, QC progress, training,etc. Assistant Install Proiect Manager "Assistant Manager") 1. Will assist the PM with upholding the daily procedures and guidelines set on the Project as described above. Daily Task for Assistant Manager (9 am -6pm) 11. Govern the distribution and execution of the audits to the installers. (ALL DATA ISSUES WILL BE CORRECTED BY NEXT DAY) 12. Complete the exceptions list follow up locations, access, etc. If the meter pit is able to be installed the assistantPM will do install at point of contact. 13. Install pit meters in route as day is planned with other responsibilities. 14. Check in the installers nightly. Collect installer's daily field summary sheet, phones and paperwork. Make sure Installer work order management system data is uploaded successfully. 15. Do nightly paperwork summary for Project Manager to review in the morning. 17-27 Scope of Work - City of Newport General Install procedures - 1. Never park or turn around in a residential driveway. Park vehicle in safe location on the street of install location. If it's a busy road, you can pull on a side street as close as possible to the location that you are doing the install. Put safety cones out. 2. Exit your vehicle and collect all necessary equipment you will need for install. 3. Verify Address on route sheet with house number on the structure you are going to be installing. If there is not a number on the structure, check the surrounding structures to see if logically this should be the correct location. 4. Locate the pit or vault where you will complete the installation. Some pits are not easily visible so may be necessary to use directions provided by utility if available. Once you locate the meter box open up the lid to verify provided data information (old meter#, last read, if available) 5. Knock on the door and inform homeowner of your arrival/ about the replacement. Let them know water will be off for a fewminutes. 6. Select the address in the Mueller Systems handheld and click Install, Exchange. 7. Select the address in the handheld. Summary screen will provide meter information. 8. Verify old meter number, address and old reading (if provided) match in both handhelds. 9. TURN ON WATER FAUCET/HOSE CONNECTION. 10. VERIFY METER IS MOVING AND THE INFORMATION IS CORRECT. 11. Turn water off if no back-flow preventer. 12. If necessary, removewater and or dirt from meter box and dispose of as directed. 13. If a leak is present, bad plumbing or any other noticeable issue, stop and let your manager know or make as an exception as directed. 14. Start install in the handheld and double check that the information matches. 15. With the handheld: • (P)***Take a picture of meter in the box showing valve position before work start (see Pic 1); • Remove the old meter - Turn off the water and remove the meter. • Enter the old meter reading; • (P)***Take picture of the register, validating the picture shows the reading (see pic2); • (P)***Take a picture of the old meter serial number (see pic3); • Scan in the new meter number; • Scan Transmitter number; • Fill out other information in handheld. 16. Install the new meter, check to make sure the arrow is pointing in the correct direction. 17. Turn on the water and check for leaks. 18. Flush the air from hose connection, if available, running 10 gallons whenever possible. Leave door hanger if hose connection not available. 19. (P)*** TAKE PICTURE OF WATER BEING FLUSHED (see pic4). 20. Return to pit and make sure the meter ran in the proper direction. 21. (P)***Take picture of number for new meter number and number of the MiNode showing the screw properly installed (see pic 5). 8 17-28 Scope of Work - City of Newport 22. With the Mueller Systems handheld: • Enter the old meter reading, Next; • Enter the Meter Type as "Mueller Systems SSR EXT"; • Enter the multiplier as defined by Mueller Systems • Enter the size; • Enter the location and lid type, Next; • Scan the Mueller ID, Register ID, and Base ID, Test; and • Select Next, Next, Done to collect GPS. 23. With the handheld: • (P)*** Take Picture of entire setting showing valve position, meter direction, and reading on new meter. (see pic 6) 24. TURN OFF WATER FAUCET/HOSE CONNECTION. 25. Make sure flow stops. 26. Fill out paperwork for the project. 27. Replace lid or drill lid as applicable and install the through the lid ("TTL") hanger with nut and screw. 28. (P)***Take a picture from the side of the drilled lid with the installed TTL. 29. (P)***Take final picture of lid drilled and or replaced (make sure item is noted on paperwork). 30. Note any exceptions in the notes section. 31. Pick up and Clean up area. 32. Put the old meter WITH PLASTIC END CAPS in the box you took the new meterfrom. 33. Complete as an exception if no lid is available and it cannot be drilled. 34. Wrap up install. Make sure you collect all tools and trash associated with the install and then proceed to the next location. Data collection as follows: Pictures: Installer Photos Description: 1. Existing meter setting — picture of old meter in box showing valve position before start. (See picture 1) 2. Old Read — picture of old register read (Top of Meter). (See picture 2) 3. Old meter serial number— picture of old meter serial number on lid or # printed in register face. (See picture 3) 4. Water line being flushed — picture of the water line being flushed at hose bib. (See picture 4) 5. New meter and new remote number — picture of the new meter and new remote set side by side with serial numbers visible. (See picture 5) 6. Completed meter setting — picture of the new meter installed and surrounding area including valve in on position and register read. (See picture 6) 7. Completed TTL lid install — picture of the antenna mounted in the drilled lid. (See picture 7) 9 17-29 Scope of Work - City of Newport List of services and direction - 1. 5/8"x3/4", %", 1", 1 %", 2" — Small meter C/O pits. 2. 5/8"x3/4" Thru 6"— Retrofits. Exceptions Reporting Daily Protocols ■ Exceptions will be recorded daily by the installers per specifications set for the job. ■ The managers will review exceptions recorded by the installers daily with the installers to insure valid reasons and record notes on field summary sheet. ■ Exceptions will be reviewed the following day and put in appropriate status report that is reviewed by project support manager. ■ All exceptions such as locates, no access, miscellaneous, etc. will be re -assigned to Assistant Managers handheld to conduct site visit before status reclassified and turned back to utility for assistance. (If manager is able to complete install, he will do soduring site visit). Potential Problems (Exceptions) Items that have been identified that would be non-standard work or reason to not complete install. 1. Pre-existing Leak—During pipe and valve inspection, if there are anyconcerns 2. Meter Numbers do not match - Check old reading and verify address. If correct address, call manager. You will most likely be able to proceed with install and note in both handheld and paperwork. 3. Meter size does not match- If numbers, reading and address are correct, proceed, and note in handheld and paperwork. 4. Bad Valve- Valve is previously broken. Will not shutoff water. (Frozen orfree spinning upon arrival) ]0 17-30 Scope of Work - City of Newport S. Locate — Cannot locate the meter 6. Access - Locked gate, dog, obstacle blocking meter, etc. 7. Customer refused - Instructed to leave the property 8. Other— Manager approved only if doesn't fit other categories. Any issues that arise during installations, Install Project Manager or Manager or Assistant Manager (will need to coordinate to address all field issues, customer escalations, etc.). Installer will typically start meter installs at 8:OOam and last install complete by 5:00pm. F Installer Picture #I <--Installer Picture # 2 17-31 Scope of Work - City of Newport E --Installer Picture #3 Ffnstaller Picture #4 l? 17-32 Scope of Work - City of Newport (—Installer Picture < --installer Picture # m r L- Installer Picture 17-33 Scope of Work - City of Newport QC Team Rales and Responsibilities: • Team members will QC previous days' installs completed by installers. • Goal is to insure the installs were completed per specifications and guidelines of the install procedures manual. • Field QC will be conducted for 100% of new technicians for two weeks, thereafter field QC will be performed on 3% of installs. • QC team will complete 100% of previous days' installs (data and pictures) the following day. o Collect QC data including following: ■ Lid drilled; ■ TTL installed correctly with screw and node mounted correctly; ■ Meter set correctly; ■ Reading on meter >10 gal, water off, and info like no hose bib; ■ Meter number and node numbers matchdatabase; ■ General condition of site — no dirt piles or trash left behind: and ■ Any work not complete will be noted in the exceptions report, corrected and shared with managers for daily training. o QC audit pictures include the following (6 pictures): 1. Found site; 2. Lid seated in box; 3. Register read; 4. Meter set; S. Node and register numbers• and 6. Side view of TTL installation. 14 17-34 Ei Sk Scope of Work - City of Newport 5. AMI Software Integration - Mi.Host Not Applicable. 6. AMI Software Integration - Consumer Portal with Smart Energy Water Not Applicable_ 7. Mueller Systems' Responsibilities Mueller Systems will provide a Project Managerwho will coordinate all deployment activities. The Project Manager will serve as a single point of contact and: • Develop the detailed Project Plan. • Will remain with the project until completion. • Develop and maintain Project Schedule. • Working closely with the City to: o Develop Installation Plan; and a Track Project Milestones and Deliverables. • Coordinate Project Communications and Status Updates. • Install Mi.Net Infrastructure. • Provide Mi.Host Server Hosting - Mueller Systems will host the server for Mi.Net AMI server. • Mi.Node installations will be completed by Mueller Systems subcontractor. • Implement Network testing will be conducted to ensure all AMI network infrastructure, including Collectors, Mi.Net AMI server, and interconnectivity is working correctly. These results will be shared with the City. • Conduct User Training — classroom and field training is supported by using the actual system; for that reason, training is broken down into two phases: o Initial Systems Familiarization to support installation, CIS interface development, and project monitoring. This initial training will be provided during the installation phase to all City employees identified by the City. This training is typically completed by onsite Mueller Systems project managers. The agenda and attendees will be developed in coordination with the City; and o Formal Classroom Training on the system will be scheduled by the Project Manager with coordination of the City. 8. City's Responsibilities Designate personnel to serve in roles per the attached in Attachment 6. 16 17-36 Scope of Work - City of Newport • Ensure that the site conditions for collectors are prepared and ready for installation of collectors and repeaters by Mueller Systems in accordance with the final network design that is approved by both Mueller Systems and the City. • Provide Access. The City shall provide access to any and all necessary locations and facilities where the Work will be performed by Mueller Systems or its subcontractor. In the case of inaccessible locations, it shall be City's responsibility to gain access for Mueller Systems or its subcontractor. • Provide storage facilities capable of housing all project materials and facilitate office space for deployment team; a minimum of 2,000 Square Feet is needed to operate efficiently. Minimum space for 2 office personnel, 2 computer desks and a 6-foottable to store and charge Electronic Hand -Held Computers. Indoor or outdoor storage space for approximately up to 8000 meters/Nodes. • Provide general all -day parking for warehouse staff (up to 4 persons) and access for installers vehicles to load and unload morning and evening. 9. Project Communications and Status Updates Mueller Systems will establish, maintain, and distribute a project communications master list. This will be updated prior to the Project status update call and distributed if changes are made. Mueller Systems will organize and execute weekly written and semimonthly status update meetings via conference call or on site. The dates and times will be negotiated and mutually agreed upon with the City after contract execution. Meeting will be held by teleconference established by Mueller Systems and a calendar invite will be sent to the City Project Administrator. This schedule can be adjusted after the Project starts and progresses, as necessary. Overall Project schedule and daily schedule progress will also be covered. 10. Project Schedule Initial Project schedule timeline is outlined below. Within 30 days following the Agreement's execution, Mueller Systems will coordinate with the City to develop a detailed Project schedule. Milestone Complete Date Complete Contract signature NTP (notice to proceed) Kickoff meeting and Schedule NTP +30 days Project Closure NTP + 36 Months 17 17-37 Scope of Work - City of Newport 11. Training Introduction to the Mueller Systems Advanced Metering Infrastructure class describes the advantages of using an AMI system. The class covers the MLNet engineered system and its components. The Mi.Net User Interface is described in detail including creating reports, setting up alerts, generating on demand reads, and billing interface. Training shall be provided to ensure competency of City designated staff to provide for system operation and functionality. Mueller Systems shall provide training and assess staff competency throughout the training process and provide feedback and direction regarding ongoing training requirements throughout the implementation. 3 Training days total included within this scope of work. Reference Training Plan located in Attachment 7. 12. System Acceptance Endpoint Acceptance: 15. During full deployment, meters and nodes will be considered accepted in groups defined by the Project team as they have been completed and passed the EAP. 13. Final Completion The Project will be considered complete when all components of the solution outlined in section 12 have been accepted. i8 17-38 CITY OF NEWPORT BEACH AGREEMENT WITH MUELLER SYSTEMS AUTOMATED METER INFRASTRUCTURE (AMI) PURCHASE, INSTALLATION & MAINTENANCE AGREEMENT EXHIBIT A (SCOPE OF WORK) ATTACHMENT 1 PROPAGATION STUDY Case 20954 dated 3 29 2018 17-39 Case V 20551 312912o1a City of Newport Beach, (CA) --- RFv4 Propagation Study Study Details Available Information • Community Centers available in service area • Fre Stations available in service area • Street U. -hu ar-rlable in service area • "26:680 Mete r [I00°.e Plastic pits] Assumptions • ^26: 680 meter locations were provided to Mueller Sytterns for &.xs study. Additional meter lontions provided after this study may require additional infrastructure, • Study assumes all water rrmters mounted under plastic pit Gds. Nodes must be mounted thrown the lid with a Mue er. TFL adaater. • Areas with low signal zwer otic may require additional infrastn assure. • Stucy is designed and based on a maximum distorceof 2 -hops from Mi.kub to node. • Assets proposed for infrastrutwre locations wil I require : site survey to determine any nearby assets?]aC=t OCl: aiaale for infrastructure placement. Atter site s amey: if there are no viable asset:, study will need revision. • for asset assumptions see papas labeled `Infrastructure irrstnitation nate and as•umntion?. Estimated Infrastructure Requirements • One:11 XR-RMi.Hub Collectors [on RzdioTowerj • 16 YR r&Hub Collector(on Street Lghts) • 17 AC }:R Repeaters [an Street L;e.ts) Ferfofmance Goals • Rr Covene o'f kn.'talled base of mercTf modalea to ale at 10010.E Rend rate of at least 95.5% yaer a 3 -day window of the instailec nate of actt.ve meter/modules. ('tote: This RF propagation study was conducted using the available information and as- sumptions stated in this document. Quantities and infrastructure kw tions are sub- ject to change after detailed site surey following award. MUeller SYSTEMS 1 17-40 Gare $A 20954 City of Newport Beach, (CA) - RFv4 Propagation Study Mi.Hub Collector Locations EXISTING ASSETS, [,in es l .1 12,14.17 Already installed during the €'roof of ['criormanee Phase 3. 2JY20i8 Type Height Assumption Asset Flame Latitude (Dedmal Degreesl Longitude (Decimal Degrees) XK-R 190` Radia Tower 33.632131 -117.937834 30` Street Light 1 33.61150054 -117.9209745 XR 90' Street Light 2 33.60610079 -117.9D50753 XR 30' Street Light 3 33.58725665 -117.8654015 XR 30' Street Light 4 33.59608515 -117.8784233 XR 30' Street Light 5 33.62188681 -117.8902697 XR 30' Street Light 6 33.63199912 -117.9034795 XR 30' Street Light 7 33.66312137 -117.8636845 XR 30' Street Light 8 33.65627607 -117.8805264 XR 30' Street Light 9 33.64661155 -117.8637838 XR 30' Street Light 10 33.63897429 -117.9861074 XR 30� Street Light 11 33.61334378 -117.8578417 XR 30' Street Light 12 33.61283865 -117.8436784 XR 30 Street Light 13 33.627,09296 -117.8479272 XR 3 0' Street Light 14 33.60481585 -117.8898453 XR 30` Street Light 15 33.60877397 -117.8721395 XR 30 Street Light 16 33.61610936 -117.902025 Street Light 17 33.59885786 -117.8661514 Muller SYSTEMS 17-41 C"t Y 24514 City of Newport Beach, (CA) — RFv4 Propagation Study Mi.Hub Collector Locations EXISTING ASSETS; °.1-3+2aia Type Height Asset Latitude Longitude Assumption Name {Decimal Degrees) (Decimal Degrees) XR 30' Street Light 18 33.63345103 -117.863127 Mueller syst j 17-42 Case # 20454 City of Newport Beach, (CA) - RFv4 Propagation Study XR Repeater Locations EXISTING ASSETS; I Lines 1,2,12,13 Already installed during the Proof of Performance Phase 3, 23,-2DIC Height TypeAsiiIII >tion f Asset Name Latitude [Decimal Gegreesl Longitude (Decimal Degrees) .CXR 3G` Street Lig lit for ACXR 1 33.62225908 -117.9286094 ACXR 30: Street Liglit for ACXR 2 33.625121_6 -117.9064058 ACXR 30' Street Light for ACXR 3 33.52393513 -117.8968497 ACXR 30' Street Light for ACXR 4 33.53486918 -117.9483357 ACXR 30' Street Light for ACXR 5 33.63893865 -117.9741421 ACXR 30' Street Light for ACXR 6 33.61942301 -117.9385564 ACXR 30' Street Lig lit for ACXR 7 33.61711785 -117.8723307 ACXR 30' Street Light for ACXR 8 33.61148373 -117.8932749 ACXR 30' Street Light for ACXR 9 33.60948447 -117.9810245 ACXR 30' Street Light for ACXR 10 33.60194442 -117-8736658 ACXR 30' Street Light for ACXR 11 33.58922967 -117.8568372 ACXR 3 C11, Street Liget for ACXR 12 33.60488739 -117.860983 ACXR 3 C11, Street Lignt for ACXR 13 33.62572952 -117.8559028 ACXR 30' Street Light for ACXR 14 33.66199484 -117.8727565 ACXR 30' Street Light for ACXR 15 33.54177477 -117.8638956 ACXR 30' Street Light for ACXR 16 33.66906897 -117.8649217 ACXR 30' Street Light for ACXR 17 33.62944916 -117.9301753 Mueller SYSTEMS 17-43 � � s� - _— lj: '�Q fl a ars � -' I E•' `" 5 � k�yy. � - f .17 or t •����r �';r� -Q- •- - - :Ire• - .v a• •� : - i -++Rye •a Sys. rr._. - C— 14 IOC -S4 City oof Newport Beach, (Cly) -- RFv4 Propagighon Study E5tifnnated Rf Analysis-:oveffage WRmt InCryctrLwharsvQllarfl*6c a VP%# rl — X41 PA. tnr--'7G. tam(ibo%,PLactb PrCc] XR-,R callartom = i {ars Rack ff=wArj X roll. 03a =1R Jm Strr..s Lifftrtck ac!'PRepeeter3 t7 lam Sin etLW%&) y z1 {� = Xft fiapeddeisignal stmngm ! l A. F I'llah Uaw G 17-45 Msc: M 20904 City of Newport Beach, (CA) ---- RFv4 Propagation Stuciv Estilllated RF RQCILllId211C)( 1,d29J201 a 17-46 Case 2 20554 City of Newport Beach, (CA) — RFv4 Propagation Study Infrastructure installation dotes and Assumptions 3?291'2Q16 DevkC Note-4amumptions .R -R Ori vt4j�,4- includvs in tojiat;Dr gf.:rinmrn ano Ar. -i m.far,'ri-r.r on top ci Cra k_ mutnfriq CndiGCL'dtng COaAj4T0+T amp+'+fCr C0 coiYacrordo-w'1 Ov ronk.- fast l.�1dar; of the oWhild ossa[ Ca11��crorat baso Dfranls arz Uti2�ry SL'pp.�.�d.n3aL'+Ir1f7Q �aainG� WAOth Gr,Rravftng 011 Ca Fl ra7c2rians. igF 3WYGp LCr]i7 rwarhons. o, ASSUMES QVffiJG JeACSWrCe IM17 h(m C25e(3fit)-rang, oftha comacto.rsirsra.0 shu D.ASSUMES COVIOCWT Can be fnsr Red to an a)istvig ciemst or roam an Gxiisdmg pa.rW and Lhor a goad ground is prc- VRdgd orovailmbirifarNgh nlrgarrasta- r- Axmanaz waoa r mou mt ng is avaifrbi; or WttV ba mama auariobAm by s dIky jb r ampfYk r and naw, na_ d_Ass!jmQscmpiftorandar,rarnaof hi�rhGrfrG1t7gmard�epvj a. M"YPr5p=.n-z cpuumas Choi su. tahtn coarlaciions ax -sr ro ortnciz to axis� grour%, hkq Aravi6Qd 4 rW customar at catbctOr, a.+rP6j5Qf and on- carnomaumtirg iocatians Dios nor f rciudo rha mb mng: a. Other tnanuoi mh-k-mor dkecdy associated kdrh installation of the Cc4paorsuch os iPaadIranchia3 fram torn to orai.7.�rica'jur c tion box and buikdlep or cc6Pcinr mourtrng fronm b. structuroP am&yxis or RF stv.,ty of deW-ce 17-47 Ca;e r _'05 54 City of Newport Reach, (CA) — RFv4 Propagation Study Iii€rastr«tture Installation Notes and Assumptions 3,29jM9 Device Notes/assumptions XR Hub on Collector and Ahs pr Nided harcw2re mounted to urility p raided asset :t the ha4ht indies<ted in the prop study. €firer baited or damped to building/pole litrlity 2=Ct pnovideb with na 7ddrd0n?l mP+lntir4 cor4zider:twrz using supplied maurtng hardv zFe. a. ASSUMES avaOONR AC SOIHCe 5{N hfn OWL, (3f t) rangy i4F trio cofiacrcrs inxtafhad s.7a b. Assumes ON,parts of rhe instaiil r6ar; can be acc-0mad whir a ittddar and no marx lfr rcquirnd C. Assumes coiiectarcon be insw led to an ex&ting circuit or to an odditiono! circOr braakarin an azstirrg panel d. Assumas arrranna haspropar mounting airailabb orw.W be.mada avardabfa. Assumas arrtanna w.k4 ba nmunriad at a mirr:nwm of 3£' e. Wai!ar System— assumes that suitaWa rannacoeass awiv to artacb to exfst'ng graunaing prauidad by dv tummar at e'a!{at'Car, ampffffar Cid ontanna maLnong iocatioeu XR Hub with Irdueer selected non-rekscopic.nd .non tiltin; pole provided by 1.15 and labor to lorsite, set and install pole and collector by MS in utility appro•.ed riga. of Aissuaplied wari. c a. assumes OuaOabde At source wrrlhin close (3jft) range gFrra caiiccrars irsr&ygdsita b. assumes cOJi2Ctor con be irtstaWd to an axistirg orru t or to an addiaond cirm:t brnwkar in an wisang panof c Assames cdie€ror cern be insi Ned to OP axisdog crrruir or to an add6ana� cirruit broakar 3n arc exisdnq paraei d. kwumea anranna has Propar mavmtvrg avp.;AabI& orwAl be made o u ahfa. A=mas anranna w7i be naountad C. a miroimum of 3D' e. i 64Jar$ystamsnssumasthatsuetaE.bconnecdemsoxiscroartart?roaxirir>ggrwrrdagp-.idadbyrrxrcustomerprcoftrrar,anapiif5orond oratanno moLnring focafnaeu iUlAIMtt MIMOtMaMfln M 17-48 Cue p 213954 City of Newport Beach, (CA) — RFv4 Propagation Study Infrastructure Installation Notes and Assumptions +29f2ols Device Notesfassurnptio-ns ACXp-on Lf.:- Repe2rcr and NIS pro-.ided harcxare mounter to araViCCb as:e; : the heigrn inc'4--ted in the prop study. Either Bolted or ohrnped to builcng,, pale r. asxt pm ided with m� add:taml mounting oonsideratrons usingsupplied mounting hardwcne. a. Assumes avatlabJe ACSOUrCe within close j3ft) rarsga of the rapeatar inswMed sila b. Assumes Oparts of the instakorion Can be actamed w, i a taddar and no rnrnn4jr requ, rad r_ Assumes repearer can be rnstabed to an aaist?ng drnrii Of ib an addidOnQi cireuir brnakar in Mn twisting Pena,' -d. Assumes anteona .has pre par mounting a,naiJabia or will' be naada aLAdAmbho_ Ammas anrumna vdlfbo mourned at a minimum of 3[7'_ -. Muaiiar Systems assurnes that suirabia eaniaaetiors exist to attach to existing gruundrng prawidcdhy the mnaawf atcoffacrer, at?p yriar aw AnteMAG nV. V.gtlR!g 100060n5, iD 17-49 CITY OF NEWPORT BEACH AGREEMENT WITH MUELLER SYSTEMS AUTOMATED METER INFRASTRUCTURE (AMI) PURCHASE, INSTALLATION & MAINTENANCE AGREEMENT EXHIBIT A (SCOPE OF WORK) ATTACHMENT 4 ENDPOINT ACCEPTANCE PLAN 17-50 ilAi.Net Objective The objective of the EAP is to verify that the All System will operate and meet or exceed the criteria set forth in this Exhibit. The parties will jointly administer the EAP. For all tests below, Mueller Systems will calculate the applicable performance requirements using the existing software features within the All System. Unless stated otherwise below, any disputes regarding the performance of the All System shall be settled using meter read data from Mi.Host's database. Testing will generally commence within 30 days of when the following activities have been completed: 1. All Mi.Nodes and meters physically installed 2. Network infrastructure installed 3. Mi.Nodes have been configured for reporting 4. HES/MDM is configured and collecting data Note: • Before beginning the Test Procedure, all equipment (Mi.Nodes, network equipment, etc.) must be installed in locations defined in the network system design. • Utility may choose to waive testing if it believes that such testing is unnecessary. Should anytest be waived, such test shall be deemed to have passed. Test Procedure I. Mueller Systems notifies Utility of readiness to commence testing 2. Mueller Systems and Utility mutually agree upon start date and testduration 3. Mueller Systems will provide written test results within five (5) days of the conclusion of the test 4. if test results fall within performance criteria set forth below, Mueller Systems will provide written notice of successful completion and maintenance responsibility will pass to Utility at that time for all network infrastructure, Mi.Nodes and meters 5. If test results fall outside of the performance criteria set forth below, Mueller Systems will attempt to determine root cause of non -reporting Mi.Nodes utilizing NES/MDM network tools 6. If Mueller Systems determines that a given Mi.Node is not reporting due to site specific or homeowner induced conditions, the Utility shall take steps to remediate. 7. If Mueller Systems determines that a given Mi.Node is not reporting due to other than site specific or installation related conditions, then Mueller Systems shall take steps to remediate. 8. When sufficient remediation has been completed, proceed to begin the test procedure over again. i est Performance Criteria Collection or Billing Data Formula Performance Criteria is 98.E%, reads during the applicable Billing Window* Performance Criteria = 100 x ([Successful Communications] / [Expected Communications]} 32 17-51 * Billing Window means the span in days, no shorter than 3 days, during which a valid meter read must be obtained to properly bill a customer. Successful Communications is defined as a billing read available in HES/MDNI. Expected Communications is defined as a billing read From each active account in I IF;S,'MR.M. The denominator "Expected Communications" in the formula above will be modified to adjust for the following conditions: 9. Damaged meter or Mi.Node for example: meters with tamper, theft or other human induced failures that render the meter or Mi.Node module incapable of providing a read 10. Other Installation Defect—the unit is otherwise installed improperly so that it does not communicate with the network infrastructure. 11. Meter or Mi.Node has been identified for Utility to remediate 12. MI.Node is serviced by network infrastructure that has been subjected to a power failuregreater than eight (8) total hours within the last three (3) days 13_ Illegal or unauthorized jamming of the radio spectrum is preventing or interfering with radio communications 14. Data Base errors — the Mi.Node is removed from the field but not removed from the HES/MDM database. 15. Mi.Node is dependent on Mi.Node that has been identified for Utility to remediate 16. A Mi.Node orthe network equipmentthat serves a Mi.Node has been affected bya Force Majeure event Operation of Remote Disconnect Meter (Disconnect/Reconnect) Large Group Performance Criteria is 90% successful disconnections or reconnections within 24 hours of HES/MDM receiving the specified accounts and requested actions (disconnect/reconnect). A "Large Group" is defined as a list of up to but not more than 1,000 meters. One Large Group will be processed per 24-hour period. Small Group Performance Criteria is 90% successful disconnections or reconnections within 4 hours of HES/MDM receiving the specified accounts and requested actions (disconnect/reconnect). A "Small Group" is defined as a list of less than 20 meters. Formula Performance Criteria = 100 x ([Successful Operations] / [Expected Operations]) Successful Operations means the intended action either disconnection or reconnection has occurred. Expected Operations means the intended action. The denominator "Expected Operations" in the formula above will be modified as specified in the Collection of Billing Data section above. 33 17-52 The EAP test procedure can be applied to the entire population or may be applied to a subset of meters based on network layout, geographic region, or meter reading routes as mutually agreed upon by Mueller Systems and the Utility. 34 17-53 CITY OF NEWPORT BEACH AGREEMENT WITH MUELLER SYSTEMS AUTOMATED METER INFRASTRUCTURE (AMI) PURCHASE, INSTALLATION & MAINTENANCE AGREEMENT EXHIBIT A (SCOPE OF WORK) ATTACHMENT 5 SCHEDULE OF VALUES 3 17-54 ATTACHMENT 5- SCHEDULE OF VALUES Invoicing will occur monthly at a minimum. Milestones for payments are as follows: Item Milestone & Method of Verification Comments Hardware/ Products (meters, Invoiced upon Delivery nodes, collectors, etc.) Annual MiHost software hosting Invoiced annually fee Annual handheld Maintenance One-year anniversary of date of City's acceptance Annual Collector Maintenance One-year anniversary of date of City's acceptance Professional Services fees Invoiced monthly increments. Fee spread evenly over Project duration established during Project Kick Off Meeting. Meter/endpoint installation Device installed and has reported to MiHost Collector and repeater Installation complete reporting installation to MiHost Training Completion of training and verified by sign in sheet Propagation Study Signature of Final Network Design by both parties Collector Backhaul Fees Installation complete reporting to MiHost Change Orders Fulfilment of the elements Review of invoice and satisfactory contained within the change completion of the elements order and invoiced to the City within the change order. 36 17-55 CITY OF NEWPORT BEACH AGREEMENT WITH MUELLER SYSTEMS AUTOMATED METER INFRASTRUCTURE (AMI) PURCHASE, INSTALLATION & MAINTENANCE AGREEMENT EXHIBIT A (SCOPE OF WORK) ATTACHMENT 6 UTILITY ROLES & RESPONSIBILITIES 17-56 ATTACHMENT 6: UTILITY ROLES & RESPONSIBILITIES C I L y ur;';c�,14PG� " 0ca�:, re;.�-0,!,.1t�. System Sponsor Overall executive sponsor of system (Project Provide resources Administrator) Remove obstacles Approves plans and budgets related to system Manage and coordinate Utility activity during deployment Project Manager Contractual compliance and resolution with MS program manager Internal communications related to project matters Schedule and resource planning Review and approval of System Test Plan System Operator Execution of System Test Plan and associated component tests (with MS) Review and approval of System Test Plan results Training and readiness to assume post deployment responsibilities Network Approval of network installation procedures and device locations Equipment Acceptance of network device installation Manager Field inspection of network installations asnecessary Training and readiness to assume post deployment responsibilities Approval of meter/node installation procedures Meter/Endpoint Acceptance of meter/ node installations Manager Field inspections of meter/node installations as necessary Training and readiness to assume post deployment responsibilities Roles and R -esponsibilities — Post Deployment Responsibilities System Sponsor OVerall executive sponsor of system Provide resources (Project Executive leadership Administrator) Remove obstacles Approves system plans and budgets System Operator Mi.Net® account management MS Office proficiency 17-57 • Knowledge of utility billing system • Knowledge of utility operational practices • Understanding of RF systems • MS Office proficiency • Proficiency of meter installation, test procedures, and equipment • Proficiency with Software 17-58 • Interface to billingsystem • Software testing/upgrades when necessary • Process owner for Mi.Net system operations (including fieldequipment) • System SME to customer service, IT and other internal stakeholders Network • Maintenance and operation of repeaters, Equipment collectors, field tools • Field test/troubleshooting of Manager meters/nodes Meter/Endpoint • Maintenance of meters/nodes Manager • Field test/troubleshoot of meters/nodes • Knowledge of utility billing system • Knowledge of utility operational practices • Understanding of RF systems • MS Office proficiency • Proficiency of meter installation, test procedures, and equipment • Proficiency with Software 17-58 CITY OF NEWPORT BEACH AGREEMENT WITH MUELLER SYSTEMS AUTOMATED METER INFRASTRUCTURE (AMI) PURCHASE, INSTALLATION & MAINTENANCE AGREEMENT EXHIBIT A (SCOPE OF WORK) ATTACHMENT 7 TRAINING AGENDA 40 17-59 Attachment 7: Mi.NetO AMI Training Agenda Advanced Metering Infrastructure (AMI) Tier 1 Training Tier 1 Class Description Introduction to the Mueller Systems Advanced Metering Infrastructure describes the advantages of using a smart metering system. The class covers the Mi.Net engineered system and its components and explains a multi -path and star network. The Mi.Net User Interface is covered including: creating reports, understanding alerts, generating on - demand reads, billing interface, and how the consumer can access meter information. Topics to be Covered: Mi.Net System Components Advantages of Using a Smart Metering System Multi -Path Two -Way Networking System Mi.Net User Interface Overview • Overview of different tabs • Viewing all water & electric accounts • Viewing individual accounts and detail • Creating reports • Changing passwords • Advanced search • Performing on -demand reads • Account Management — new, changes, closing, decommissioning Alerts Email Notification Billing Overview —file structure (uploads/downloads), billing cycle ~ Utility & Consumer Portals (Optional) Who Should Attend? Individuals responsible for monitoring meter readings, generating files for billing purposes and managing the overall utility system. Prerequisites: 41 17-60 Individuals should be able to use a computer to connect to the internet, be familiar with Microsoft Windows XP (or higher) operating system, and be able to save and print documents. Advanced Metering Infrastructure (AMI) Tier II Training Tier II Class Description: The Mueller Systems Advanced Metering Infrastructure Tier 11 training begins with a review of the MiHost software. This class will cover an in depth understanding of alerts, data logging and threshold configuration, individual and global metering setup, and soft disconnects. It will also cover email alerts, advanced search features, water remote disconnect meters and how to add/install meters. Topics to be covered: • Mi Host Software Review o Overview of differenttabs o Water and electric pages o Detailed reporting o Alerts o Water 0 Email configuration a Global alert configuration o Other alerts • Data logging & Threshold • Soft Disconnect • Service Disconnect • Remote Disconnect • Advanced Search • Updating the Mi.Net Database • Installation, Swaps and Manual Reads Who should attend? Individuals responsible for monitoring meter readings, generating files for billing purposes and managing the overall utility system. Prerequisites: Individuals should be able to use a computer to connect to the internet, be familiar with Microsoft Windows XP (or higher) operating system, and be able to save and print documents. 4? 17-61 CITY OF NEWPORT BEACH AGREEMENT WITH MUELLER SYSTEMS AUTOMATED METER INFRASTRUCTURE (AMI) PURCHASE, INSTALLATION & MAINTENANCE AGREEMENT EXHIBIT A (SCOPE OF WORK) ATTACHMENT 8 Warranty Information 43 17-62 Appendix A Mueller 5vstems — Product Warranty Statement 1. Limited Warranty. Mueller Systems, LLC ("Mueller") warrants that, for the duration of the Warranty Period (defined below): (a) each product purchased from Mueller ("Product") will be free from defects in materials and workmanship under normal use, installation and service conditions; (b) the media on which any Software is furnished will be free of defects in materials and workmanship under normal use; and (c) any such Software will substantially conform to the applicable published Mueller functional specifications for such Software. Products will have a warranty period of the greater of (i) one (1) year from date of shipment or (ii) the applicable warranty period for a specific Product stated below in Section 6 ("Warranty Period"). 2. Exclusive Remedy. Mueller will, at its option, either repair or replace with an equivalent substitute a Product that is in breach of the foregoing warranty during the Warranty Period if Purchaser reports the breach to Mueller within sixty (60) days after Purchaser discovers the breach. At Mueller's request, Purchaser will ship the allegedly defective Product to a repair facility designated by Mueller at Purchaser's expense and risk. If Mueller, in its sole discretion, determines that the Product breached the applicable warranty, Mueller will ship the repaired or replaced Product to Purchaser at Mueller's expense and risk. If Mueller determines that it is unable to repair or replace such Product, it will, at Mueller's sole discretion provide a cash or credit refund to Purchaser. If Mueller repairs or replaces any such defective Product, the Warranty Period for the repaired or replaced Product will continue for the longer of (y) thirty (30) days, or (z) the remainder of the original Warranty Period. Mueller's warranty is subject to exclusions, as set forth in Section 3. This Section 2 sets forth Mueller's entire liability, and the Purchaser's exclusive remedy, for any alleged breach of warranty for any Products. 3. Exclusions. Mueller has no obligation under this Product Warranty Statement if (a) a Product has been subject to misuse, neglect or accident or has been damaged through abuse, alternation, installation or application inconsistent with AWWA guidelines or Mueller specifications, including but not limited to Mueller propagation studies, failure to follow Mueller's operation or maintenance instructions or negligence in transportation, handling, or storage, or repaired by anyone other than Mueller or its authorized personnel, (b) with respect to software, there has been a change to the software's operating environment not made or authorized by Mueller or if Purchaser fails to install any correction or enhancement provided by Mueller, or if a virus is introduced through no fault of Mueller, or (c) if any Product fails to satisfy the applicable warranty as a result of any force majeure event. Mueller's Product Return process can be found at www.muellersystemsreturns.com . 4. Important Disclaimer. EXCEPT AS EXPRESSLY SET FORTH HEREIN, MUELLER DISCLAIMS ALL OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND 44 17-63 NON -INFRINGEMENT AND WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICE. TO THE EXTENT ANY IMPLIED WARRANTY CANNOT BE EXCLUDED, SUCH WARRANTY IS LIMITED IN DURATION TO THE EXPRESS WARRANTY PERIOD. 5. Limitation on Liability. Mueller has no liability with respect to damage or destruction of property or the personal injury or death of persons resulting from defects in Products or from improper installation, use, maintenance or operation of any Products. In all cases, Mueller's liability shall not exceed the total amount paid by Purchaser to Mueller under this Order. 6. Product Warranties. The following provisions in this Section 6 modify the limited warranty in Section I with respect to the specific Products identified below: 45 17-64 Automated Meter Reading (AMR) / Advanced Metering Infrastructure (AM[) Products Product Description Warranty Period AMR 1 AMI Software These items of Software will One (1) year from date of shipment to Purchaser, perform in accordance with Mueller's published specifications for the duration of the Warranty Period. AMR / AMI Hardware — During the Warranty Period, One (1) year from date of shipment to Purchaser. unless otherwise expressly specified these Products will be free from herein defects in materials and workmanship. AMR / AMI Radio Modules — During the Warranty Period, Ten (10) years from date of shipment to Purchaser. AM] water module end oints and p these Products will be free from defects in materials Additionally, the unit is covered b y y a prorated warranty for AMR water module endpoints and workmanship. years eleven (11) through fifteen (15) at a fifty -percent (50%) discount, and years sixteen (16) through twenty (20) at a twenty -five -percent (25%) discount from the date of shipment to Purchaser. All discounts will be calculated on the then current published price of the original product. All prorated warranty discounts are to be used towards the purchase of replacement units. Encoder Register Products, Wall During the Warranty Period, Ten (10) years from date of shipment to Purchaser. Pads and Pit Pads. these Products will be free from defects in materials and Additionally, the unit is covered by a prorated warranty for workmanship. years eleven (11) through fifteen (15) at a fifty -percent (50%) discount, and years sixteen (16) through twenty (20) at a twenty -five -percent (25%) discount from the date of shipment to Purchaser. All discounts will be calculated on the then current published price of the original product. All prorated warranty discounts are to be used towards the purchase of replacement units. Water Metering Products Product Description Warranty Period All Meter Products not otherwise During the Warranty Period, One (1) year from date of shipment to Purchaser. specified herein these Products will be free from defects in materials and workmanship. Remote Disconnect Meters (RDM) During the Warranty Period. Five (5) year warranty or two -thousand (2,000) actuations of valve and solenoid assembly these Products will be free from the valve, whichever comes first, from the date of shipment to defects in materials and Purchaser. workmanship. Bronze Maincases During the Warranty Period, these Twenty -Five (25) years from date of shipment to Purchaser. Products will be free from defects in materials and workmanship. Composite Maincases During the Warranty Period, these Fifteen (15) years from date of shipment to Purchaser. Products will he free from defects in materials and workmanship. 46 17-65 Standard registers for the above During the Warranty Period, these Ten (10) years from date of shipment to Purchaser. listed mechanical meters Products will be free from defects in materials and workmanship. 5/8" -- Five (5) years from the date of shipment to Purchaser or the registration of 500,000 U.S. gallons, whichever comes first; 3/4" — Five (5) years from the date of shipment to Purchaser or the registration of 750,000 U.S. gallons, whichever comes first; l" — Five (5) years from the date of shipment to Purchaser or the AWWANew Meter Accuracy registration of 1,000,000 U.S. gallons, whichever comes first; l-1/2" — Two (2) years from the date of shipment to Purchaser or the registration of 1,600,000 U.S. gallons, whichever comes first; 2" — Two (2) years from the date of shipment to Purchaser or the registration of 2,700,000 U.S. gallons, whichever comes first. Models 400 and 500 Series 518" — Fifteen (15) years from the date of shipment to Purchaser Meters or the registration of 1,500,000 U.S. gallons, whichever comes first; 314" — Fifteen (15) years from the date of shipment to Purchaser or the registration of 2,250,000 U.S. gallons, whichever comes first; AWWA Repaired Meter Accuracy 1"— Fifteen (15) years from the date of shipment to Purchaser or (AWWA M6 Manual) the registration of 3,000,000 U.S. gallons, whichever comes first, ]- 1/2" — Ten (10) years from the date of shipment to Purchaser or the registration of 5,000,000 U.S. gallons, whichever comes first; 2"— Ten (10) years from the date of shipment to Purchaser or the registration of 8,000,000 U.S, gallons, whichever comes first. Model HbMAG electromagnetic During the Warranty Period, Two (2) years from date of shipment to Purchaser. cold -water meters these Products will be free from defects in materials and workmanship. Solid State Meters During the Warranty Period (ten (10) years from date of shipment to Purchaser) these Products will meet or exceed accuracy of +1- 1.5% between the specified minimum flow rate to the specified maximum. Additionally, the unit is covered by a prorated warranty for years eleven (l 1) through fifteen (15) at a fifly-percent (50%) discount, and years sixteen (16) through twenty (20) at a twenty- five -percent (25%) discount from the date of shipment to Purchaser. All discounts will be calculated on the then current published price of the original product. All prorated warranty discounts are to be used towards the purchase of replacement units for the following sizes: 5/8" Meter 0.1 gpm to 20 gpm 5/8" x 3/4", 3/d' Short, and 3/4" Long Meter 0.1 to 30 gpm I" Meter 0.4 to 55 gpm 1 '/2" Meter 0.25 to 100 gpm 2" Meter 1.5 to 160 gpm ' American Water Works Association ("AWWA") 47 17-66 EXHIBIT B SCHEDULE OF BILLING RATES Mueller Systems, LLC Page B-1 17-67 17-68 FULL DEPLOYMENT FEE SCHEDULE MS Part No. Category:' ]tem Quanity Unit Price Extended Price Sales 1'ax Description MS -G4 -AC -B -3G Collectors 14 S 4,000.00 $ 56,000.00 $ 4,340,00 \1i_flub MS.G4-AC-B-3G-R rower Collector XXR 0 S 4,975.00 S - S . Mi.Hub XXR MSW-NODE4-AC Repeater 13 $ 960.00 $ 12,480.00 S 967.20 Mi.Reptsim MS-H4-HH-INST-KIT RF installation hand-held 2 S 4,800.00 S 9,600.00 S 744.00 Mi.Tech VOGB433 518" Myers 16917 S 127.00 S 2,149,459 00 S 518" X 3/4" 420 Bmnze, PB, Solid State digital Reg with 166,505.57 Mi.nodc Radio VOHB219 314" Maas 4 5 160.00 $ 640.00 S 3A" 435 Brar¢e, Solid State Digital Reg with Mimode 49.60 Radio VOKS238 1" Meters 7259 S 180.00 $ 1,306,620.00 5 101,263,05 V 452 Bantle, Solid Slate Digital Reg with Mi.ntode radio WONB138 1-12" Meters (LOW FLOW) 478 S 429.26 S 205,186-28 S 1112" 562 Bronze Meter with Solid State Reg and Mi.node 15,901-94 Radio Q9NS105M4 1-12" Meters (H[GLL FLOW) 75 $ 455.27 $ 34,145.25 S 1 112" MVR 100 Bronze Meter 2 bolt flange in standard lay 2,646,26 length and Mi.node Radio WOPB138 2" Milers (LOW FLOW) 1139 S 525.20 $ 598,202.80 S 46,360.72 2" 572 Bronze Meter with Solid State Reg and Mi.node Q9PS 105M4 2" Meters (HIGH FLOW) 305 S 531.93 S I62,238.65 S 2" MVR 160 Bronze Meter 2 boh flange in standard lay 12,573.50 length and Mi.nodc Radio PARTS 3" Neptune TrulFlo Cotrmound Meters - 'Register 32 S 258.82 S 8,282.24 S 3" Neptune T -Fl. Compound E -Coder Ra fit Registers 641.87 w/3' Nicor Connector, CF PARTS 3" Neptune HPT Compound Meters - Register I1 S 129.41 S 1,423.51 S 3" Neptune HPT E -Coder Retrofit Register w13' Niceir 110.32 Connector, CT - PARTS 4" Neptune TrulFlo Corrrpmutd Meters - Rc-SLer 52 5 258.82 S [3,458.64 S 4" Neptune TmFlo Compound E -Coder Retrofit Registers 1,043.04 w13'Nicar Connector, CF PARTS 4" Neptune HPT Corrrpound Meters - Register 9 S 119.41 $ 1,164.69 $ 4" Neptune HPI &Codcr Retrofit Regi to w13' N'icor 90.26 Cannstor, CF PARTS 4" Neptune Proc=us I[[ Compound Maas - Register 1 S 258.82 S 258.82 S 4" Neptune Pro[mm I [I E -Coder Retrofit Registers w/3' 20.06 Nicor Connocter, CF PARTS 6" Ncptune TnJFIo Compound Maas - Itc i ter 13 $ 258.62 $ 3,362.06 S 6" Neptune TruFlo Cortrpound E -Coder Retrofit Registers 260.56 w13' Nicm Can=Lar, CF PARTS 6" N'epture HPT Compeund Marrs - Register 3 S 124.41 S 388.23 S 6" Nepttme HPT E -Coder Retrofit Register w13' Nicor 30.09 Connector, CF PARTS 6" Neptune Prcctectus III Compound Meters - Re acr 2 S 258.82 S 517.64 S 6" Ngnurte Protectus III E -Coder Retrofit Registers wfT 40.12 Nicar Connector, CF PARTS 8" Neptune HPT Compound Meters - Rc&a 7 S 129,41 S 90587 S 8" Nepture HPT E -Coder Retrnfn Register w/3' Nicor 70.20 Connector, CF PARTS 8" Neptune Proct-tus II[ C.mpound Meters - Ithea,srer 2 S 256.82 S 517.64 S 8" Neptune Pmtectua [IL E -Coder Rmorit Registers w13' 40.12 Nicor Co -=ton, CF PARTS 10,000 Meta Bushings 10000 $ 13,00 S 130,000,00 $ 10,075.00 James Jones Meter Bushing Pan ME- 12811 MSW-NODF4-1 P-05 Mi.node Radio wf Nicor For Reg. Retro 757 S 60,40 S 45,420.00 S 3,520.05 Mi.node 4 Radio with Nicor Contactor MS-TTLM Through the Lid Mi. node Mounting Brackas 26286 S 3.95 S 103,829.70 S 8,046.80 TTLM PARTS 314"DFWMaer Lid 0 S 30.88 S S ISX9X 1 -3/16 "C"GRAY iii NO HOOK "NEWPORT' POLYMER LID PARTS I" DFW Meter Lid 0 S 40.73 5 S 18X1 i "C" GRAY (OUCH KLD -NO HOOK - -NEWPORT- POLYMER LID PARTS 2" DEW Meter Lid NEWPORT -0 S 71.78 S S 15X9X1-3116 "C" GRAY TR NO HOOK - POLYMER LID _ 0 Annual MrHosr Sojhvare Hosdag Fee MSW-S,PILALL-10K Annual AS11 Headend Software Hosting Fte I S 9,318,40 1 S 9,318.40 S Ycu I MSW-S-PI3-ALL-2UK Annual AMI lindend Software Hosting Fee I S 27,955.20 S 27,955.20 S Year MSW -S -PH -ALL -30K Armual A.MI Htadend Software Hosting Fee I S 37,290.00 S 37,273.60 S Year 3 .fnnuaf Handheld Maimenance S S MS -H -M -YR Ymrly !,lain:enance Charge for Handhelds 2 S b S Year I MS -H -M -YR Yearly Maintaance Charge for Handhelds 2 S 2.000.00 1 S 4,000.00 S Year 2 MS -H -M -YR Yearly Maintenanec Charge for Handhelds 2 S 2,000.0 S 4,000.00 S Year 3 - Annual Calleomr Maineen MS -G -M -YR %iAlub Collector Maintenance Charge 19 S S $ Year I MS -G -M -YR Mi.Hub Collector Maintenance Charge 19 S 500.00 S 9,500.00 S Year' MS -G -M -YR Mi.Hub CnlIeetrtr Maintenance Charge 19 S 500DO S 9,500.00 S Y wr 3 - Profeaiomlrse"kc Fee MS -PROJECT -56K Project M,.paoern '6t,241 S 30n S 172,701 00 S - Muer/Endporrr! lnafafluniun LABOR -400 5/S" Meters - Change Out Labor 16917 S 75,00 S 1268.775.00 S Prevailing Wage Rate Priced at Residential Laborer Rate LABOR -400 314" Maus - Change Out Labor 4 S 75.00 S 300.00 S Prevailing Wage Rate Priced at Residential Laborer Rate LABOR -400 I" Meters - Change Out Labor 7259 $ 75.011 S 544,425.00 S Prevailing Wage Rate Priced at Residential "be- Rate LABOR -500 1-I2" Meters - Change Out Labor 553 S 36500 S 201,845.00 $ Prevailing Wage Ram Priced at Residential Laborer Rate LABOR -500 2" Meters - Chauge Out Labor 1444 S 365.00 S 527,060.00 S Prevailing Wage Rate Priced at Residential Laborer Rate LABOR -RETRO 3" Nepture Tnt/Flo Compound Meters - Labor Reaimor Retro 32 S 158-H l S 9,091 92 $ LABOR -RETRO 3" Nepture HPT Compound deters - Labor Register Rarer 11 $ 158.81 S 1,746.91 $ LABOR -RETRO 4" Nepntne Tru/Flo Compound Maas - Labor R imcr Reno 52 $ 158.83 S 8,258.12 $ LABOR -RETRO 1 4" Neptune HPT Contpound Maas - Labor Rcai t Retro 9 $ 158.81 S 1,429.29 S 17-68 LABOR -RETRO 4" \'cpture I'rnctatus [l[ Ca.q—d Ma— - Libor Ilnista Retro 15 158,81 S 158.81 S LABOR -RETRO 6" \cptum Truf"o Compound Maas - Labcr Regis cr Retro 13 $ I58.81 5 2,064.53 S LABOR -RETRO 6" Neptune IIPT Compound Maas - Labor Rclista Retro 3 S 156.81 $ 476.43 S LABOR -RETRO 6" Neptune Proerectus [II C..pm d Meters - labor RcRister Ram 2 $ 158.81 S 317.62 S LABOR -RETRO 8" \'cptuen Ii PT Ca rpanmd Macs - Labor R Rana 7 S 158.81 S 1.111 67 S LABOR -RETRO 8' Ncptuno Proetatm III Coffpound Metas - L.b.r R isce Rera 2 5 158.81 S 317.62 $ LABOR -RETRO 314 " DFW Marr Lid Installaeian - Labor 16921 S 3.00 S 50,763 AO S LABOR -RETRO L" DFW Mac Lid Installation- Labor 7259 5 3.00 $ 21.777,00 $ LABOR -RETRO 2" DFW Mac Lid lnstallatiou-Labor F972 S 3.00 S 5,91600 $ LABOR -RETRO Mau Lid Drilling- Labor II S 10.00 S S 0 S S Caued" "d Repeater 6ashrl shun I.ABOR COLLECTOR 3 laaallatioa, Collectors - labor 14 S 150o.00 5 21,00, OL} $ Mrliub 1-taIl LABOR REPEATER 3 Irmallation- Rcpmt r - Labor 13 S 1.500.00 S 39,500.00 S Mi.Rcpcata lastall LABOR COLLECTOR 4 I stalla=ion- Town Collccmr - labor 0 S 11,945.00 S S Mi. flub XXR Insrall 0 Tisiaurg - MS.T.TRAT\'-DAY I'—g and D -.—ml— 3 S 3.60001) 5 9,I810,IH1 j R—da3 3 days- Each additional day $3000 0 S 5 - Pmpagadaa Slady MS -T -PROP Pmpapti<n St ly n s 4,500.00 S 5 n Collector 8ackhanl Fres MS -CELLULAR Flack ilaul Services for Collators 19 5 500.00 S 9,500,00 S Ymr I MS-CELLLT.AR Back I lout Saviors Cor Colloctars 19 5 500.00 S 9,500,00 S Ymr 2 MS -CELLULAR Back Haul Savim For Collectors 19 S 50-00 S 9,50LI.00 $ Ymr 3 0S S CIS faftradem Fac NIS1-cis-FILEAML\tl)MS Svstan In M-fim j i c 24,00.00 5 S Tyla/ MCA'IS or other prrn5de u c 5 - Change Orders Jar Ocher Wal r Meer Relamd Eq&me& S 5 - Echaalxire DX, Acmiuc Leak Damlion Module I S 807,00 5 - - FeWhorc DX, Basic Lmk Monitoring Sa-mc 1 5 50.04 15 - Echoshom DX, Node lmtallauon 1 S 162,00 5 - Ramne FJiuonnsl Meter 1 5 297,00 s Subtotal $ 7,837,173.14 MS -BONDING Bonding (2%) S 156,743.46 TOTAL 5 7,993.916.60 17-69 EXHIBIT C REPORTING SUBAWARDS AND EXECUTIVE COMPENSATION Mueller Systems, LLC Page C-1 17-70 REPORTING SUBAWARDS AND EXECUTIVE COMPENSATION (2 CFR 170 APPENDIX A) I. Reporting Subawards and Executive Compensation. a. Reporting offirst-tier subawards. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5) for a subaward to an entity (see definitions in paragraph e. of this award term). 2. Where and when to report. i. You must report each obligating action described in paragraph a.1. of this award term to http://`�vwiv.,(srs.gov. ii. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.) What to report. You must report the information about each obligating action that the submission instructions posted at http://www.fsrs.)oy specify. b. Reporting Total Compensation of Recipient Executives. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if— i. f i. the total Federal funding authorized to date under this award is $25,000 or more; ii. in the preceding fiscal year, you received— (A) 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the 'Transparency Act, as defined at 2 CFR 170.320 (and subawards); and (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and 17-71 iii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www. sec. gov/answers/execomp.htm.) 2. Where and when to report. You must report executive total compensation described in paragraph b. 1. of this award term: i. As part of your registration profile at http://www.ccr.gov. ii. By the end of the month following the month in which this award is made, and annually thereafter. c. Reporting of Total Compensation of Subrecipient Executives. 1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, for each first-tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's preceding completed fiscal year, if— i. in the subrecipient's preceding fiscal year, the subrecipient received— (A) 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and ii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://wwvi).,sec.gov/answers/execornp.htm.) 2. Where and when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term: 17-72 i. To the recipient. ii. By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year. d. Exemptions If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report: i. Subawards, and ii. The total compensation of the five most highly compensated executives of any subrecipient. e. Definitions. For purposes of this award term: 1. Entity means all of the following, as defined in 2 CFR part 25: A Governmental organization, which is a State, local government, or Indian tribe; ii. A foreign public entity; iii. A domestic or foreign nonprofit organization; iv. A domestic or foreign for-profit organization; v. A Federal agency, but only as a subrecipient under an award or subaward to a non -Federal entity. 2. Executive means officers, managing partners, or any other employees in management positions. 3. Subaward: i. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. ii. The term does not include your procurement of property and services needed to carry out the project or program {for further explanation, see Sec. _ .210 17-73 of the attachment to OMB Circular A-133, "Audits of States, Local Governments, and Non -Profit Organizations"). iii. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 4. Subrecipient means an entity that: i. Receives a subaward from you (the recipient) under this award; and ii. Is accountable to you for the use of the Federal funds provided by the subaward. 5. Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)): i. Salary and bonus. ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments. Earnings for services under non -equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. iv. Change in pension value. This is the change in present value of defined benefit and actuarial pension plans. v. Above -market earnings on deferred compensation which is not tax -qualified vi. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000. 17-74 EXHIBIT D INSURANCE REQUIREMENTS 1. Provision of Insurance. Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Contractor agrees to provide insurance in accordance with requirements set forth here. If Contractor uses existing coverage to comply and that coverage does not meet these requirements, Contractor agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers_ All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Contractor shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, volunteers, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Agreement. B. General Liability Insurance. Contractor shall maintain commercial general liability insurance and, if necessary, umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, products -completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract) with no endorsement or modification limiting the scope of coverage for liability assumed under a contract. C. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount Mueller Systems, LLC Page D-1 17-75 not less than one million dollars ($1,000,000) combined single limit each accident. D. Cyber Liability. Contractor shall maintain cyber liability insurance with limits of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) annual aggregate covering (1) all acts, errors, omissions, negligence, infringement of intellectual property; (2) Network security and privacy risks, including but not limited to unauthorized access, failure of security, breach of privacy perils, wrongful disclosure, collection, or negligence in the handling of confidential information, privacy perils, including coverage for related regulatory defense and penalties; (3) Data breach expenses payable whether incurred by City or Contractor, including but not limited to consumer notification, whether or not required by law, computer forensic investigations, public relations and crisis management firm fees, credit file or identity monitoring or remediation services in the performance of services for City or on behalf of City hereunder. E. Professional LiabilitV (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of one million dollars ($1,000,000) per claim and two million dollars ($2,000,000) in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the Effective Date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. 4. Other Insurance Re uirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, volunteers, and any person or entity owning or otherwise in legal control of the property upon which Contractor performs the Project and/or Services contemplated by this Agreement or shall specifically allow Contractor or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subconsultants. B. Additional Insured Status. All liability policies including general liability, excess liability, pollution liability, and automobile liability, if required, shall provide or be endorsed to provide that City and its officers, officials, employees, and agents shall be included as insureds under such policies. Mueller Systems, LLC Page D-2 17-76 C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days notice of cancellation (except for nonpayment for which ten (10) calendar days notice is required) or nonrenewal of coverage for each required coverage. 5. Additional Agreements Between the Parties. The parties hereby agree to the following. A. Evidence of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance_ Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time_ B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Contractor sixty (60) calendar days advance written notice of such change. If such change results in substantial additional cost to Contractor, City and Contractor may renegotiate Contractor's compensation. C. Right to Review Subcontracts. Contractor agrees that upon request, all agreements with subcontractors or others with whom Contractor enters into contracts with on behalf of City will be submitted to City for review. Failure of City to request copies of such agreements will not impose any liability on City, or its employees. D. Enforcement of Agreement Provisions. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non- compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. E. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. F. Self-insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions Mueller Systems, LLC Page D-3 17-77 be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these requirements unless approved by City. G. City Remedies for Non -Compliance If Contractor or any subcontractor fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Contractor's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Contractor or reimbursed by Contractor upon demand. K Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Contractor's Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Mueller Systems, LLC Page D-4 17-78 EXHIBIT E CITY OF NEWPORT BEACH BOND NO. LABOR AND MATERIALS PAYMENT BOND WHEREAS, the City of Newport Beach, State of California, has awarded to Mueller Systems, LLC, hereinafter designated as the "Principal," an Agreement to furnish, install, and maintain an Automated Meter Infrastructure ("AMI") solution in the City of Newport Beach, in strict conformity with the Agreement on file with the office of the City Clerk of the City of Newport Beach, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Agreement and the terms thereof require the furnishing of a bond, providing that if Principal or any of Principal's subcontractors, shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the performance of the Work agreed to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same to the extent hereinafter set forth. NOW, THEREFORE, We the undersigned Principal, and, duly authorized to transact business under the laws of the State of California, as Surety, (referred to herein as "Surety") are held and firmly bound unto the City of Newport Beach, in the sum of Eight Million One Hundred Fifty Thousand Dollars and 001100 ($8,150,000.00), lawful money of the United States of America, said sum being equal to 100% of the estimated amount payable by the City of Newport Beach under the terms of the Agreement; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these present. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal or the Principal's subcontractors, fail to pay for any materials, provisions, or other supplies, implements or machinery used in, upon, for, or about the performance of the Work contracted to be done, or for any other work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of employees of the Principal and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, then the Surety will pay for the same, in an amount not exceeding the sum specified in this Bond, and also, in case suit is brought to enforce the obligations of this Bond, a reasonable attorneys' fee, to be fixed by the Court as required by the provisions of Section 9554 of the Civil Code of the State of California. The Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Section 9100 of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this Bond, as required by and in accordance with the provisions of Sections 9500 et seq. of the Civil Code of the State of California. Mueller Systems, LLC Page E-1 17-79 And Surety, for value received, hereby stipulates and agrees that no change, extension of time, alterations or additions to the terms of the Agreement or to the Work to be performed thereunder shall in any wise affect its obligations on this Bond, and it does hereby waive notice of any such change, extension of time, alterations or additions to the terms of the Agreement or to the Work or to the specifications. All warranty items in excess of one (1) year under the Agreement shall be direct pass- thru warranties which are the sole responsibility of Mueller Systems, LLC to the City of Newport Beach and shall not be covered under this Labor and Materials Payment Bond. In the event that any principal above named executed this Bond as an individual, it is agreed that the death of any such principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this instrument has been duly executed by the above named Principal and Surety, on the day of 20 Name of Contractor (Principal) Name of Surety Address of Surety Telephone APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 31 Aaron C. Harp City Attorney Authorized Signature/Title Authorized Agent Signature Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST BE ATTACHED Mueller Systems, LLC Page E-2 17-80 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of I ss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/herltheir authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. (seal) State of California County of }ss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument, certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) Mueller Systems, LLC Page E-3 17-81 EXHIBIT F CITY OF NEWPORT BEACH BOND NO. FAITHFUL PERFORMANCE BOND The premium charges on this Bond is $ rate of $ , being at the thousand of the Agreement price. WHEREAS, the City of Newport Beach, State of California, has awarded to Mueller Systems, LLC, hereinafter designated as the "Principal," an Agreement to furnish, install, and maintain an Automated Meter Infrastructure ("AMI") solution in the City of Newport Beach, in strict conformity with the Agreement on file with the office of the City Clerk of the City of Newport Beach, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Agreement and the terms thereof require the furnishing of a Bond for the faithful performance of the Agreement. NOW, THEREFORE, we, the Principal, and , duly authorized to transact business under the laws of the State of California as Surety (hereinafter "Surety"), are held and firmly bound unto the City of Newport Beach, in the sum of Eight Million One Hundred Fifty Thousand Dollars and 001100 ($8,150,000.00), lawful money of the United States of America, said sum being equal to 100% of the estimated amount of the Agreement, to be paid to the City of Newport Beach, its successors, and assigns; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these present. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, or the Principal's heirs, executors, administrators, successors, or assigns, fail to abide by, and well and truly keep and perform any or all the Work, covenants, conditions, and agreements in the Agreement Documents and any alteration thereof made as therein provided on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to its true intent and meaning, or fails to indemnify, defend, and save harmless the City of Newport Beach, its officers, employees and agents, as therein stipulated, then, Surety will faithfully perform the same, in an amount not exceeding the sum specified in this Bond; otherwise this obligation shall become null and void. As a part of the obligation secured hereby, and in addition to the face amount specified in this Performance Bond, there shall be included costs and reasonable expenses and fees, including reasonable attorneys fees, incurred by City, only in the event City is required to bring an action in law or equity against Surety to enforce the obligations of this Bond. Surety, for value received, stipulates and agrees that no change, extension of time, alterations or additions to the terms of the Agreement or to the Work to be performed thereunder shall in any way affect its obligations on this Bond, and it does hereby waive notice of any such change, extension of time, alterations or additions of the Agreement or to the Work or to the specifications. Mueller Systems, LLC Page F-1 17-82 This Faithful Performance Bond shall be extended and maintained by the Principal in full force and effect for one (1) year following the date of formal acceptance of the Project by City. All warranty items in excess of one (1) year under the Agreement shall be direct pass-thru warranties which are the sole responsibility of Mueller Systems, LLC to the City of Newport Beach and shall not be covered under this Faithful Performance Bond. In the event that the Principal executed this bond as an individual, it is agreed that the death of any such Principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the day of , 20 Name of Contractor (Principal) Name of Surety Address of Surety Telephone APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: Aaron C. Harp City Attorney Authorized Signature/Title Authorized Agent Signature Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST BE ATTACHED Mueller Systems, LLC Page F-2 17-83 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Iss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of _ ?ss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/herltheir authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) Mueller Systems, LLC Page F-3 17-84 EXHIBIT G END USER LICENSE AGREEMENT Mueller Systems, LLC Page G-1 17-85 MUELLER SYSTEMS MASTER AGREEMENT THIS MASTER AGREEMENT (this "Agreement") is entered into this day of between MUELLER SYSTEMS, LLC, a Delaware limited liability corporation having its principal offices at 10210 Statesville Blvd, Cleveland, North Carolina 27013 (referred to in this Agreement as "Mueller Systems" or "Provider"), and (referred to in this Agreement as "Customer"). This Agreement governs the sale by Provider and the purchase by Customer for its own use and not for resale of, as applicable, Equipment, Software, Documentation and other items related to advanced metrology infrastructure systems. In the event of any conflict or inconsistency between the terms and conditions of this Agreement and terms and conditions of any other agreement or document, the terms and conditions of this Agreement shall govern and control and the conflicting or inconsistent terms and conditions are hereby rejected. In consideration of the mutual obligations set forth in this Agreement, Customer and Mueller Systems agree as follows: DEFINITIONS. a. "Content" means the information developed or legally acquired by Customer which may be used in connection with or accessed by any module of the Software. b. "Documentation" means the user guides, reference manuals, and installation materials provided by Provider to Customer related to the Software and Equipment. C. "Equipment" means the components, devices, products, equipment and related items provided by Provider identified in Appendix A. d. "Services" means activities related to deployment and installation services, repair services, hosting services and technical support/maintenance services as provided by Mueller Systems and as identified in Appendix B. C. "Software" means the object code versions of Mueller Systems' software identified in Appendix A, together with all subsequent authorized updates, replacements, modifications or enhancements. SOFTWARE a. Software on Equipment License. For Equipment purchased by Customer from Mueller Systems, Mueller Systems hereby grants Customer a limited, non-exclusive, non- sublicensable, non -transferable, perpetual, irrevocable license to use and execute the Software embedded in the Equipment for its internal business purposes in connection with such Equipment ("Firmware"). (10.2019) b. Online Software Access. Subject to the terms of this Agreement and the payment of the fees specified in Section 6a herein, Mueller Systems grants to Customer, for its internal business purposes and during the term of this agreement, a limited, non-exclusive, non- sublicensable, non -transferable right to access and use and make available to Customer's utility users, as applicable, and/or employees the online, hosted Software specified herein. C. Restrictions. Except as specifically and expressly permitted in writing by Mueller Systems, Customer shall not (i) violate any restriction set forth in this Agreement; (ii) modify, translate, de -compile, reverse compile, disassemble, or create or attempt to create, by reverse engineering or otherwise, the source code from the object code of the Software; (iii) adapt the Software in any way for use to create a derivative work; or (iv) include or combine the Software in or with any other software. d. Ownership. This Agreement does not grant to Customer any ownership interest in the Software or Documentation. Customer has a license to use the Software and Documentation as provided in this Agreement. Customer hereby agrees and acknowledges that Mueller Systems owns all right, title, and interest in the Software and Documentation, and Customer will not contest those rights or engage in any conduct contrary to those rights. Any copy, modification, revision, enhancement, adaptation, translation, or derivative work of or created from the Software and Documentation made by or at the direction of Customer shall be owned solely and exclusively by Mueller Systems, as shall all patent rights, copyrights, trade secret rights, trademark rights and all other proprietary rights, worldwide. 17-86 e. Reservation. Mueller Systems reserves all rights not specifically granted under this Agreement. 3. EQUIPMENT Inconsideration of the fees set forth in Appendix D of this Agreement, Mueller Systems will provide the Equipment identified in Appendix A. 4. SERVICES In consideration of the fees set forth in Appendix D of this Agreement, Mueller Systems will provide the Services identified in Appendix B. 5. CONFIDENTIALITY The Software, Equipment and Documentation, including any ideas, concepts, know-how and technology contained therein, shall be considered the proprietary and confidential information of Mueller Systems and, as such, shall be subject to the confidentiality provisions of this Agreement. If a separate, written non -disclosure agreement exists between Mueller Systems and Customer, such agreement will control and will apply according to its terms and conditions to all confidential information the parties exchange with each other. If no separate, written non- disclosure agreement exists between Mueller Systems and Customer, the terms listed in Appendix C will apply to the confidential information the parties exchange with each other. 6. FEES AND PAYMENT a. Software Fees. Customer shall pay the Software fees set forth in Appendix D of this Agreement. b. Equipment Fees. Customer shall pay the Equipment fees set forth in Appendix D of this Agreement. Title to the Equipment, except the Software and Documentation that are subject to licenses provided in this Agreement, passes from Mueller Systems to Customer when Mueller Systems ships the Equipment. C. Service Fees. Customer shall pay the Service fees set forth in Appendix D of this Agreement. d. Taxes. All prices and fees are in U.S. dollars unless otherwise specified. All amounts payable under this Agreement are exclusive of all sales, use, value-added, excise, property, withholding, and other taxes and duties. Customer will pay all taxes and duties assessed by any (1a.2019) authority in connection with this Agreement and with Customer's performance hereunder. Customer will promptly reimburse Mueller Systems for any and all taxes or duties that Mueller Systems may be required to pay in connection with this Agreement or its performance. This provision does not apply to taxes based on Mueller Systems' income, or any taxes for which Customer is exempt, provided Customer has furnished Mueller Systems with a valid tax exemption certificate. e. Payment. Unless provided otherwise herein, Customer agrees to pay all amounts specified in Appendix D or otherwise due under this Agreement within thirty (30) days after the date of invoice. Past due amounts will shall bear interest from the due date until paid at a rate of (i) one and one-half percent (1.5%) per month or (ii) the maximum rate permitted by law, whichever is less. All payments made under this Agreement shall be nonrefundable, except as specifically provided otherwise in this Agreement. 7. TERM; TERMINATION a. Term. The term of this Agreement is one (1) year commencing upon the date of this Agreement. This Agreement will automatically renew for subsequent, successive one (1) year periods at the then -current Mueller Systems prices unless either party gives the other party written notice of its intent to not renew at least thirty (30) days prior to the expiration of the then current term. Mueller Systems may increase support fees at any time on thirty (30) days prior notice to Customer. Within such thirty (30) days, Customer may terminate the Agreement by providing written notice to Mueller Systems. b. Termination for Breach. If either party breaches this Agreement, and such breach is not cured within ten (10) days of the breach, after receiving written notice, the non -breaching party may terminate this Agreement, including all licenses provided herein, effective upon written notice to the other party. The breaching party agrees that if it breaches this Agreement, the non - breaching party will be entitled to injunctive or similar equitable relief and that the breaching party will not argue in any proceeding that its breach will not cause irreparable harm to the non - breaching party or that the non -breaching party can be adequately compensated for any such harm by any remedies other than by injunctive relief. 17-87 C. Effect of Termination. Termination of this Agreement shall have the effect designated in Appendix B. d. Non -Exclusive Remedy. Termination of this Agreement or any license granted hereunder shall not limit the remedies otherwise available to either party, including injunctive relief. e. Survival. Unless otherwise stated herein, any provision that, by its nature or terms, is intended to survive the expiration or termination of this Agreement, will survive. 8. LIMITED WARRANTIES; REMEDIES a. Software. Subject to the exclusions herein, including those in Appendix A, Mueller Systems warrants that commencing from the date of shipment or provision to Customer and continuing for the period set forth in Appendix A (the "Warranty Period"), (i) the media on which the Software is furnished will be free of defects in materials and workmanship under normal use; and (ii) the Software will perform substantially in conformance with the applicable Documentation provided to Customer by Mueller Systems, Mueller Systems does not warrant that the Software will operate in combinations with other software, except as specified in the Documentation, that the Software will meet the Customer's requirements or that the operation of the Software will be uninterrupted or error -free. Customer assumes responsibility for taking adequate precautions against damages which could be caused by defects, interruptions or malfunctions in the Software or the hardware on which it is installed. Mueller Systems' entire obligation and Customer's exclusive remedy with respect to the Software warranties set forth above shall be, at Mueller Systems' option, to either (x) repair or replace any Software containing an error or condition which is reported by Customer in writing to Mueller Systems which causes the Software not to conform with the warranty set forth herein; or (y) refund a pro -rated amount paid by Customer to Mueller Systems and terminate this Agreement and all licenses provided herein. b. Services. Mueller Systems warrants that all services provided by it to Customer under this Agreement shall be performed in a workmanlike manner. Mueller Systems' entire obligation and Customer's exclusive remedy with respect to the (10.2019) Service warranties set forth above shall be the re - performance of the applicable non -conforming Service. C, Equipment. Subject to the exclusions herein, including those in Appendix A, Mueller Systems warrants to Customer that the Equipment will comply with provided specifications for the periods specified in Appendix A. Claims under this Section will be considered if submitted to Mueller Systems within sixty (60) days following the discovery of any noncompliant Equipment covered by this Agreement and provided Mueller Systems or its agents are permitted a commercially reasonable opportunity to examine and analyze the Equipment claimed to be noncompliant. Mueller Systems' entire obligation and Customer's exclusive remedy with respect to the Equipment warranties set forth herein, at Mueller Systems' option, is repair or replacement of any Equipment found noncompliant, subject to the terms and conditions herein, during the applicable warranty period after such Equipment is properly packaged and returned prepaid to Mueller Systems' designated service center. d. Costs. Any and all costs associated with uninstalling and shipping noncompliant Equipment and Software and installing replacement Equipment and Software will be the responsibility of Customer. e. Exclusions. The warranties provided by Mueller Systems shall not apply to Equipment and/or Software which: (i) have been altered, except with the express written consent, permission or instruction of Mueller Systems, (ii) have been used in conjunction with another product resulting in the defect, except for those third party products specifically approved by Mueller Systems, (iii) were other than the most current version of the Software (but only to the extent that any failure of the Software would have been avoided by the use of the most current version), (iv) have been damaged by improper environment, abuse, misuse, accident, negligence, act of God, excessive operating conditions, or unauthorized attachments or modifications, (v) have not been properly installed and operated in accordance with the Documentation, or as otherwise instructed by Mueller Systems, or (vi) any other exclusion set forth in any Appendix hereto. f. DISCLAIMERS. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE WARRANTIES AND REMEDIES STATED ABOVE ARE EXCLUSIVE AND NO OTHER WARRANTIES OR REMEDIES EXPRESS, IMPLIED OR STATUTORY, APPLY TO TETE DOCUMENTATION, THE SOFTWARE, THE EQUIPMENT OR ANY SERVICES TO BE PROVIDED BY MUELLER SYSTEMS UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO WARRANTIES OR CONDITIONS OF TITLE, NON - INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUALITY OR PERFORMANCE, AND ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, ALL OF WHICH MUELLER SYSTEMS EXPRESSLY DISCLAIMS. 9. INDEMNIFICATION. Mueller Systems will indemnify and defend Customer from any third party claim that the Software and Equipment infringe on another person's or company's patent, copyright or other intellectual property right as specified in this Section. This indemnity does not cover and specifically excludes (a) intellectual property rights recognized in countries and jurisdictions other than the United States, and (b) claims relating to infringement of intellectual property rights by a third party's products and software. Mueller Systems has no obligation under this Section for any claim to the extent it results from or arises out of Customer's modification of the Equipment or Software or from any combination, operation or use of the Software or Equipment with other third party products or services. Mueller Systems' duty to indemnify under this Section is contingent upon Mueller Systems receiving prompt notice of a claim and Mueller Systems' right to solely control resolution of a claim. Customer's sole remedy for an indemnified claim under this Section is as follows: Mueller Systems will, at its expense and in its discretion either (a) resolve the claim in a way that permits Customer's continued ownership and use of the affected Software and Equipment, (b) provide a comparable, non - infringing replacement at no cost to Customer, or (c) accept return of the Software and Equipment, provide a reasonable depreciated refund and terminate this Agreement and all licenses herein. This Section is the exclusive statement of Mueller Systems' liability and responsibility for indemnifying Customer for infringement of intellectual property rights (10.20 E4) 10. LIMITATION OF LIABILITY. a. MUELLER SYSTEMS' MAXIMUM LIABILITY HEREUNDER IS EXPRESSLY LIMITED TO THE TOTAL AMOUNT PAID FOR THE SOFTWARE, SERVICES, AND EQUIPMENT IN THE IMMEDIATELY PRECEDING TWELVE (12) MONTHS AND WILL UNDER NO CIRCUMSTANCE EXCEED THE AMOUNT PAID BY CUSTOMER IN THE IMMEDIATELY PRECEDING TWELVE (12) MONTHS FOR THE SOFTWARE, SERVICES AND EQUIPMENT PROVIDED BY MUELLER SYSTEMS UNDER THIS AGREEMENT. Some states do not allow the limitation and/or exclusion of liability for incidental or consequential damages, so the above limitation may not apply. b. The provisions of this Agreement allocate the risks between Customer and Mueller Systems, Mueller Systems' pricing reflects this allocation of risk and the limitations of liability specified herein. 11. NOTICE. All notices required to be given hereunder shall be in writing. Notice shall be considered delivered and effective upon receipt when sent by registered or certified mail, return receipt requested, addressed to the parties as set forth above. Either party, upon written notice, may change any name or address to which future notice shall be sent. 12. GENERAL. The Software will not be exported or re-exported in violation of any export provisions of the United States or any other applicable jurisdiction. The rights and obligations of this Agreement are personal rights granted to the Customer only. The Customer may not transfer or assign any of the rights or obligations granted under this Agreement to any other person or legal entity. Any such purported transfer or assignment shall be null and void. Mueller Systems will be free of liability to the Customer where Mueller Systems is prevented from executing its obligations under this Agreement in whole or in part due to force majeure, such as earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable. Any modification or amendment to any of the provisions of this Agreement will be in writing and signed by an authorized officer of each party. This Agreement does not create or imply any relationship in agency or partnership between the parties. Headings are inserted for the 17-89 convenience of the parties only and are not to be considered when interpreting this Agreement. The validity of this Agreement and the rights, obligations, and relationship of the parties resulting from same will be interpreted and determined in accordance with the law of the State of California, and applicable federal law, without regard to its choice of law provisions. The parties specifically exclude from application to the Agreement the United Nations Convention on Contracts for the International Sale of Goods and the Uniform Computer Information Transactions Act. If any provision of this Agreement is contrary to and in violation of any applicable law, such provision will be considered null and void to the extent that it is contrary to such law, but all other provisions will remain in effect. The waiver or failure of either party to exercise any right herein shall not be deemed a waiver of any further right hereunder. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all other prior and contemporary agreements, understandings, and commitments between the parties regarding the subject matter of this Agreement. [Signatures Appear on the Following Page] (10.2019) 17-90 EACH PARTY ACKNOWLEDGES THAT IT HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. Mueller Systems Customer B By: y: Name (Print or Type) Name (Print or Type) Title Title M (10.2019) 17-91 Appendix A Mueller Systems — Product Warranty Statement 1. Limited Warranty. Mueller Systems, LLC ("Mueller") warrants that, for the duration of the Warranty Period (defined below): (a) each product purchased from Mueller ("Product") will be free from defects in materials and workmanship under normal use, installation and service conditions; (b) the media on which any Software is furnished will be free of defects in materials and workmanship under normal use; and (c) any such Software will substantially conform to the applicable published Mueller functional specifications for such Software. Products will have a warranty period of the greater of (i) one (1) year from date of shipment or (ii) the applicable warranty period for a specific Product stated below in Section 6 ("Warranty Period"). 2. Exclusive Remedy. Mueller will, at its option, either repair or replace with an equivalent substitute a Product that is in breach of the foregoing warranty during the Warranty Period if Purchaser reports the breach to Mueller within sixty (60) days after Purchaser discovers the breach. At Mueller's request, Purchaser will ship the allegedly defective Product to a repair facility designated by Mueller at Purchaser's expense and risk. If Mueller, in its sole discretion, determines that the Product breached the applicable warranty, Mueller will ship the repaired or replaced Product to Purchaser at Mueller's expense and risk. If Mueller determines that it is unable to repair or replace such Product, it will, at Mueller's sole discretion provide a cash or credit refund to Purchaser. If Mueller repairs or replaces any such defective Product, the Warranty Period for the repaired or replaced Product will continue for the longer of (y) thirty (30) days, or (z) the remainder of the original Warranty Period. Mueller's warranty is subject to exclusions, as set forth in Section 3. This Section 2 sets forth Mueller's entire liability, and the Purchaser's exclusive remedy, for any alleged breach of warranty for any Products. 3. Exclusions. Mueller has no obligation under this Product Warranty Statement if (a) a Product has been subject to misuse, neglect or accident or has been damaged through abuse, alternation, installation or application inconsistent with A W WA guidelines or Mueller specifications, including but not limited to Mueller propagation studies, failure to follow Mueller's operation or maintenance instructions or negligence in transportation, handling, or storage, or repaired by anyone other than Mueller or its authorized personnel, (b) with respect to software, there has been a change to the software's operating environment not made or authorized by Mueller or if Purchaser fails to install any correction or enhancement provided by Mueller, or if a virus is introduced through no fault of Mueller, or (c) if any Product fails to satisfy the applicable warranty as a result of any force majeure event. Mueller's Product Return process can be found at www.mueltersystemsretums.com . 4. Important Disclaimer. EXCEPT AS EXPRESSLY SET FORTH HEREIN, MUELLER DISCLAIMS ALL OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON -INFRINGEMENT AND WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICE. TO THE EXTENT ANY IMPLIED WARRANTY CANNOT BE EXCLUDED, SUCH WARRANTY IS LIMITED IN DURATION TO THE EXPRESS WARRANTY PERIOD. 5. Limitation on Liability. Mueller has no liability with respect to damage or destruction of property or the personal injury or death of persons resulting from defects in Products or from improper installation, use, maintenance or operation of any Products. In all cases, Mueller's liability shall not exceed the total amount paid by Purchaser to Mueller under this Order. 6. Product Warranties. The following provisions in this Section 6 modify the limited warranty in Section 1 with respect to the specific Products identified below: (10.2019) 17-92 Automated Meter Reading (AMR) 1 Advanced Metering Infrastructure (AMI) Products Product Description Warranty Period AMR 1 AMI Software These items of Software will One (1) year from date of shipment to Purchaser. perform in accordance with Mueller's published specifications for the duration of the Warranty Period. AMR / AMI Hardware — During the Warranty Period, these One (1) year from date ofshipment to Purchaser. unless otherwise expressly specified Products will be free from defects herein in materials and workmanship. AMR / AMI Radio Modules — During the Warranty Period, these Ten (10) years from date of shipment to Purchaser. AMI water module endpoints and Products will be free from defects in materials and workmanship. Additionally, the unit is covered by a prorated warranty for years AMR water module endpoints eleven (Il) through fifteen (15) at a fifty -percent (50%) discount, and years sixteen (16) through twenty (20) at a twenty- five -percent (25%) discount from the date of shipment to Purchaser. All discounts will be calculated on the then current published price of the original product. All prorated warranty discounts are to be used towards the purchase of replacement units. Encoder Register Products, Wall Pads During the Warranty Period, these Ten (10) years from date of shipment to Purchaser. and Pit Pads. Products will be free from defects Additionally, the unit is covered by a prorated warranty for years in materials and workmanship. eleven (ll) through fifteen (15) at a fifty -percent (50%) discount, and years sixteen (16) through twenty (20) at atwenty- €ive-percent (25%) discount from the date of shipment to Purchaser. All discounts will be calculated on the then current published price of the original product. All prorated warranty discounts are to be used towards the purchase of replacement units. Water Metering Products Product Description Warranty Period All Meter Products not otherwise During the Warranty Period, these One (t) year from date of shipment to Purchaser. specified herein Products will be free from defects in materials and workmanship. Remote Disconnect Meters (RDM) During the Warranty Period, these Five (5) year warranty or two -thousand (2,000) actuations of the valve and solenoid assembly Products will be free from defects valve, whichever comes first, from the date of shipment to in materials and workmanship. Purchaser. Bronze Maincases During the Warranty Period, these Twenty -Five (25) years from date of shipment to Purchaser. Products will be free from defects in materials and workmanshi . Composite Maincases During the Warranty Period, these Fifteen (15) years from date of shipment to Purchaser. Products will be free from defects in materials and workmanship. Standard registers for the above listed During the Warranty Period, these Ten (10) years from date of shipment to Purchaser. mechanical meters Products will be free from defects in materials and workmanship. (10.2019) 17-93 (10.2019) 'American Water Works Association ("AWWA") 17-94 518" — Five (5) years from the date of shipment to Purchaser or the registration of 500,000 U.S. gallons, whichever comes first; 314" — Five (5) years from the date of shipment to Purchaser or the registration of 750,000 U.S. gallons, whichever comes first; 1" — Five (5) years from the date of shipment to Purchaser or the AWWA' New Meter Accuracy registration of 1,000,000 U.S. gallons, whichever comes first; 1-1/2" — Two (2) years from the date of shipment to Purchaser or the registration of 1,600,000 U.S. gallons, whichever comes first; 2" — Two (2) years from the date of shipment to Purchaser or the registration of 2,700,000 U.S. gallons, whichever comes first. Models 400 and 500 Series Meters 518" — Fifteen (15) years from the date of shipment to Purchaser or the registration of 1,500,000 U.S. gallons, whichever comes first; 314" — Fifteen (15) years from the date of shipment to Purchaser or the registration of 2,250,000 U.S. gallons, whichever comes first; AWWA Repaired Meter Accuracy 1" — Fifteen (15) years from the date of shipment to Purchaser or (AWWA M6 Manual) the registration of 3,000,000 U.S. gallons, whichever comes first; 1-112" — Ten (10) years from the date of shipment to Purchaser or the registration of 5,000,000 U.S. gallons, whichever comes first; 2" — Ten (10) years from the date of shipment to Purchaser or the registration of 8,000,000 U.S. gallons, whichever comes first. Model 11bMAG electromagnetic cold- During the Warranty Period, these Two (2) years from date of shipment to Purchaser. water meters Products will be free from defects in materials and workmanship. Solid State Meters During the Warranty Period (ten (10) years from date of shipment to Purchaser) these Products will meet or exceed accuracy of +/- 1.5% between the specified minimum flow rate to the specified maximum. Additionally, the unit is covered by a prorated warranty for years eleven (11) through fifteen (15) at a fifty -percent (50%) discount, and years sixteen (16) through twenty (20) at a twenty -five - percent (251/16) discount from the date of shipment to Purchaser. All discounts will be calculated on the then current published price of the original product. All prorated warranty discounts are to be used towards the purchase of replacement units for the following sizes: 518" Meter 0.1 gpm to 20 gpm 5/8" x'/4", 3/4" Short, and 3/a" Long Meter 0.1 to 30 gpm 1" Meter 0.4 to 55 gpm 1 '/z" Meter 0.25 to 100 gpm 2" Meter 1.5 to 160 gpm (10.2019) 'American Water Works Association ("AWWA") 17-94 Appendix B Services 1. Software Services and Support Obligations a. "Update" to the Software means a subsequent release of the Software that Provider makes generally available to its current customers for the Software. Updates include changes and corrections to the Software as are required to keep the Software in substantial conformance with the applicable Documentation and that are created by Provider as corrections for defects in the Software. Updates shall not include any release, option or future product that Provider licenses separately. Provider shall in its sole discretion determine the nature, content, timing and release of any Updates. h. Web -based support, consisting of information on the most current release of the Software through Provider's web site. C. Phone support in the form of advice and counsel via telephone regarding Customer's use of the most current release of the Software, as well as Customer's connectivity and ability to access Content. Phone Support is provided from 8:00 AM to 7:00 PM Eastern Time, Monday through Thursday and 8:00 AM to 5:00 PM Eastern Time on Fridays. All hours and days exclude recognized U.S. holidays observed by Mueller Systems. 2. Software Hosting Services a. Except as specifically permitted in this Agreement, Customer shall have web -based access the Software hosted by Provider pursuant to this Agreement. b. Provider shall provide Customer with access and related hosting services to the Software installed on Provider's servers. Provider will also install the Content provided by Customer. Provider will define the appropriate performance specifications and will host the server at a Provider's location. Provider will monitor and perform routine maintenance on the server, and if the server is not operating properly, will make a good faith effort to operate Customer's system on a backup server, if available. Access to Customer's server is restricted to authorized Provider information technology and support personnel only. Differential and full server backups are performed when reasonably practicable_ c_ Customer shall be responsible for installing, operating and maintaining the equipment, software, and/or facilities at Customer location recommended by Provider for effective access to and use of the Software installed on Mueller Systems server. Customer shall be responsible for providing and maintaining its own Internet access and all necessary telecommunications equipment at Customer's location necessary for accessing the Software. d. Upon termination, for any reason, of the Agreement or any license(s) granted herein, Provider shall immediately cease providing access to the Software and Hosting Services. Customer shall (i) immediately stop access and use of all such Provider confidential information (including Software), (ii) shall return all copies of the Software, Documentation, and any Provider confidential information to Provider; and (iii) delete all Software, Documentation, and other confidential information off of any and all storage media possessed or controlled by Customer. Customer shall provide Provider with written certification signed by an officer of Customer that Customer has complied with the provisions of this Section. Customer shall immediately pay all amounts due to Provider. (10.2019) 17-95 Appendix C Confidential information For purposes of this Attachment, "party" or "parties" shall mean Provider and Customer, including their respective subsidiaries and affiliates who are providing information under this Agreement. The parties agree to maintain confidential information as follows: 1. Definition of Confidential Information. The parties understand and agree that confidential information is any and all current and future Equipment, Documentation and/or Software information, roadmap, technical or financial information, customer names, addresses and related data, contracts, practices, procedures and other business information, including software reports, strategies, plans, documents, drawings, machines, tools, models, patent disclosures, samples, materials and requests for proposals that may be disclosed between the parties, whether written, oral, electronic or otherwise, however and wherever acquired ("Confidential Information"). Confidential Information excludes any information which would otherwise fall in the definitions above, but which was (a) known to the recipient of the information ("Recipient") before receipt from the disclosing party; (b) publicly available through no fault of Recipient; (c) rightly received by Recipient from a third party without a duty of confidentiality; (d) disclosed by disclosing party to a third party without a duty of confidentiality on the third party; (e) independently developed by Recipient without breach of this or any other confidentiality agreement; or (f) disclosed by Recipient after prior written approval from the disclosing party. 2. Obligations of Confidentiality and Remedies. Recipient agrees, to the extent allowed by law, including but not limited to the California Public Records Act, to protect the disclosing party's Confidential Information with the same degree of care, but no less than a reasonable degree of care, as Recipient uses with respect to its own Confidential Information. Neither party has any obligation to exchange Confidential Information. Both parties acknowledge and agree that the disclosure of the other parry's Confidential Information could cause irreparable harm. Therefore, an injured party is entitled to applicable equitable relief, including injunctions, in addition to other remedies, for such wrongful disclosure of Confidential Information. In addition, disclosure of Confidential Information required by a government body or court of law is not a violation of this Section if the Recipient gives prompt notice of the required disclosure to the disclosing party. 3. Term of Confidentiality Obligations. Recipient's duty to protect Confidential Information expires three (3) years from the date of disclosure of the particular Confidential Information. 4, No Warranties on Confidential Information. Neither party warrants or guarantees the accuracy of any Confidential Information transferred between the parties. (10.2019) 17-96 Appendix D ,Imua mfffOStSa}hrareHVSdmgFee �&Wdhy I Unit Price NISW-S-PH_ALL-30K AsmualsNIIHeadendSoftware 'iostin_g Fee 1 S 37.100.00 S 3'_? 73.50 IAMS-H-'-%f-IR Yearly' _Maintenance Charge for Handhelds '- 5 'A00.00 -J S - x,000.00 -iiSZ-\d-'1R I -MtHub Collector \-Maintenance Charge I 191 5 •40.00 I S 9 `00.00 * Years 1-3 Fees are as stated in Exhibit B. Years 4-5 are as provided in this Appendix D. 17-97 EXHIBIT H PREVAILING WAGE CODES Mueller Systems, LLC Page H-1 17-98 Exhibit H California Labor Code Section 1771 Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works. This section is applicable only to work performed under contract and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work. Section 1775 (a) (1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor. (2) (A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following: (i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations. (B) (i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 17-99 1720) of Part 7 of Division 2 against that contractor or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section. (D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion. (E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements: (1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815. (2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages. Section 1776 (a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be 17-100 verified by a written declaration that it is made under penalty of perjury, stating both of the following: (1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project. (b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis: (1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor. (c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division. The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a). (d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft -Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four 17-101 digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175x) shall be marked or obliterated only to prevent disclosure of an individual's social security number. (f) (1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. (2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision. (g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address. (h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10 -day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section. (i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. 0) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section. Section 1777.5 (a) (1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. 17-102 (2) For purposes of this chapter, "apprenticeship program" means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b) (1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered. (2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or undergo testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test. (c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following: (1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. "Apprenticeable craft or trade," as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, "contractor" includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o). 17-103 (e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work. The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, if requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work. (h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a subcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1 -to - 5 ratio required by subdivision (g). (j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1 -to -5 hourly ratio, as set forth in this section for that craft or trade. 17-104 (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1 -to -5 ratio set forth in this section when it finds that any one of the following conditions is met: (1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one - thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman. (1) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1 -to -5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards. (m) (1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2) (A) At the conclusion of the 2002-03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Industrial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows: (i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made. (ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. 17-105 (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used solely for training apprentices. For purposes of this subparagraph, adequate records include, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision. (C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to receive any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate the process to rescind the registration of the apprenticeship program. (3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor. (o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director. Section 1813 The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty-five dollars ($25) for each worker employed in the execution of the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one 17-106 calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract and shall report them to the Division of Labor Standards Enforcement. Section 1815 Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1112 times the basic rate of pay. 17-107 ATTACHMENT B UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION ASSISTANCE AGREEMENT IA. AGREEMENT NUMBER 1B. MOD NUMBER 2. TYPE OF AGREEMENT 3. CLASS OF RECIPIENT R19AP00129 ® GRANT 1 ElCOOPERATIVE AGREEMENT US Local Government 4. ISSUING OFFICE 5. RECIPIENT Bureau of Reclamation City of Newport Beach Inc. Acquisitions and Assistance Management Division 100 Civic Center Dr. Acquisitions and Assistance Operations Branch Newport Beach, CA 92660-3267 P.O. Box 25007, MS 84-27810 Denver, CO 80225-5007 EIN N: 956000751 County: Orange DUNS u: 1060752482 Congress. Dist: CA -48 6. RECIPIENT PROJECT MANAGER 7A. INITIAL AGREEMENT 7B. MODIFICATION EFFECTIVE DATE: Steffen Catron, Utilities Manager EFFECTIVE DATE: City of Newport Beach See Block 13.a below Utilities Department g. COMPLETION DATE 949 West 161' St. Newport Beach, CA 92663-9998 March 31, 2023 949-718-3402 scatron@newportbeachca.gov 9A. PROGRAM STATUTORY AUTHORITY 9B. CFDA Number Section 9504(a) of the Secure Water Act, Public Law 111-11 (42 United States Code 10364) 15.507 10. FUNDING INFORMATION NON-FEDERAL RECLAMATION TOTAL PROJECT COSTS Total Estimated Amount of Agreement $7,245,000.00 $1,500,000.00 $8,745,000.00 This Obligation $7,245,000.00 $1,499,000.00 $8,744,000.00 Previous Obligation $0,00 $0,00 $0.00 Total Obligation $7,245,000.00 $1,499,000.00 $8,744,000.00 11. PROJECT TITLE Newport Beach Advanced Metering Infrastructure Implementation Program (Phase 2) 12a. Acceptance of this Assistance Agreement in accordance with the terms and 13a. Award of this Assistance Agreement in accordance with the terms and conditions contained herein is hereby made on behalf of the above-named conditions contained herein is hereby made on behalf of the United States recipient of America, Department of the Interior, Bureau of Reclamation BY BY DATE: DATE 12b. NAME AND TITLE OF SIGNER 13b. NAME OF GRANTS OFFICER APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 4 /a U By: _(Vc.Aaron . Harp. City Attomey 17-108 Page 2 of 50 TABLE OF CONTENTS OVERVIEW AND SCHEDULE............................................................................................... 4 1. AUTHORITY........................................................................................................................ 4 2. PUBLIC PURPOSE OF SUPPORT OR STIMULATION................................................... 5 3. BACKGROUND AND OBJECTIVES................................................................................. 5 4. PERIOD OF PERFORMANCE AND FUNDS AVAILABILITY ....................................... 6 5. SCOPE OF WORK AND MILESTONES............................................................................ 6 6. RESPONSIBILITY OF THE PARTIES............................................................................... 7 7. BUDGET............................................................................................................................... 8 8. KEY PERSONNEL............................................................................................................. 10 9. LIMITATION OF AUTHORITIES.................................................................................... 10 10. REPORTING REQUIREMENTS AND DISTRIBUTION ............................................... 11 11. REGULATORY COMPLIANCE..................................................................................... 14 12. AGRICULTURAL OPERATIONS [Public Law 111-11, Section 9504(a)(3)(B)]........... 14 13. TITLE TO IMPROVEMENTS [Public Law 111-11, Section 9504(a)(3)(D)]................. 14 14. OPERATION AND MAINTENANCE COSTS [Public Law 11 I-11, Section 9504(a)(3)(E)(iv.)]............................................................................................................ 14 15. LIABILITY [Public Law 111-11, Section 9504(a)(3)(F)]............................................... 14 I1. RECLAMATION STANDARD TERMS AND CONDITIONS ............................................ 16 1. REGULATIONS.................................................................................................................. 16 2. PAYMENT.......................................................................................................................... 16 3. PROCUREMENT STANDARDS (2 CFR 200.317 through 200.326) ............................... 20 4. EQUIPMENT (2 CFR 200.313).......................................................................................... 29 5. SUPPLIES (2 CFR 200.314)............................................................................................... 32 6. INSPECTION...................................................................................................................... 32 7. AUDIT REQUIREMENTS (2 CFR 200.501)..................................................................... 32 8. REMEDIES FOR NONCOMPLIANCE (2 CFR 200.338) ................................................. 34 9. TERMINATION (2 CFR 200.339)...................................................................................... 34 10. DEBARMENT AND SUSPENSION (2 CFR 1400) ........................................................ 35 11. DRUG-FREE WORKPLACE (2 CFR 182 and 1401) ...................................................... 35 12. ASSURANCES AND CERTIFICATIONS INCORPORATED BY REFERENCE........ 35 Agreement No. R19AP00129 Agreement Template (03/2019) 17-109 Page 3 of 50 13. COVENANT AGAINST CONTINGENT FEES.............................................................. 36 14. TRAFFICKING VICTIMS PROTECTION ACT OF 2000 (2 CFR 175.15) ................... 36 15. NEW RESTRICTIONS ON LOBBYING (43 CFR 18) .................................................... 38 16. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970 (URA) (42 USC 4601 et seq.)............................................... 39 18. PROHIBITION ON TEXT MESSAGING AND USING ELECTRONIC EQUIPMENT SUPPLIED BY THE GOVERNMENT WHILE DRIVING ............................................ 41 19. REPORTING SUBAWARDS AND EXECUTIVE COMPENSATION (2 CFR 170 APPENDIXA).................................................................................................................. 42 20. RECIPIENT EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS (SEP 2013) ...................... 45 21. RECIPIENT INTEGRITY AND PERFORMANCE MATTERS (APPENDIX XII to 2 CFRPart 200)................................................................................................................... 46 22. CONFLICTS OF INTEREST............................................................................................. 48 23. DATA AVAILABILITY.................................................................................................... 49 Agreement No. R19APOO 129 Agreement Template (03/2019) 17-110 Page 4 of 50 Financial Assistance Agreement Between Bureau of Reclamation And City of Newport Beach Inc. For Newport Beach Advanced Metering Infrastructure Implementation Program (Phase 2) I. OVERVIEW AND SCHEDULE 1. AUTHORITY This Financial Assistance Agreement (Agreement) is entered into between the United States of America, acting through the Department of the Interior, Bureau of Reclamation (Reclamation) and City of Newport Beach (Recipient), pursuant to Section 9504(a) of the SECURE WATER ACT, Subtitle F of Title IX of the OMNIBUS PUBLIC LAND MANAGEMENT ACT OF 2009, Public Law 111-11 (42 United States Code 10364) (the "Act"). The following section, provided in full text, authorizes Reclamation to award this financial assistance agreement: SEC. 9504. WATER MANAGEMENT IMPROVEMENT. (a) A UTHORIZATION OF GRANTS AND COOPERATIVE AGREEMENTS.— (1) A UTHORITY OF SECRETARY.—The Secretary may provide any grant to, or enter into an agreement with, any eligible applicant to assist the eligible applicant in planning, designing, or constructing any improvement— (A) to conserve water; (B) to increase water use efficiency; (C) to facilitate water markets; (D) to enhance water management, including increasing the use of renewable energy in the management and delivery of water; (E) to accelerate the adoption and use of advanced water treatment technologies to increase water supply; (F) to prevent the decline of species that the United States Fish and Wildlife Service and National Marine Fisheries Service have proposed for listing under the Endangered Species Act of 1973 (16 US. C. 1531 et seq.) (or candidate species that are being considered by those agencies for such listing but are not yet the subject of a proposed rule); Agreement No. RI9AP00129 Agreement Template (03/2019) 17-111 Page 5 of 50 (G) to accelerate the recovery of threatened species, endangered species, and designated critical habitats that are adversely affected by Federal reclamation projects or are subject to a recovery plan or conservation plan under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seg.) under which the Commissioner of Reclamation has implementation responsibilities; or (H) to carry out any other activity— (i) to address any climate -related impact to the water supply of the United States that increases ecological resiliency to the impacts of climate change; or (ii) to prevent any water -related crisis or conflict at any watershed that has a nexus to a Federal reclamation project located in a service area. 2. PUBLIC PURPOSE OF SUPPORT OR STIMULATION The Newport Beach Advanced Metering Infrastructure Implementation Program (Phase 2) project (Project) achieves the public purpose of the Act by increasing the reliability of water supplies and improving water management. 3. BACKGROUND AND OBJECTIVES Through WaterSMART (Sustain and Manage America's Resources for Tomorrow), Reclamation leverages Federal and non -Federal funding to work cooperatively with states, tribes, and local entities as they plan for and implement actions to increase water supply reliability through investments and attention to local water conflicts. Working together with our stakeholders, WaterSMART provides support for the Department of the Interior's priorities, including creating a legacy of conservation stewardship, sustainably developing our energy and natural resources, modernizing our infrastructure through public-private partnerships, and restoring trust with local communities by improving relationships and communication with states, tribes, local governments, communities, landowners and water users. Through Water and Energy Efficiency Grants, Reclamation provides assistance to states, tribes, irrigation districts, water districts, and other entities with water or power delivery authority to undertake projects that result in quantifiable and sustained water savings and support broader water reliability benefits. The City of Newport Beach will upgrade 26,309 existing meters to an advanced metering infrastructure (AMI) fixed based network, including AMI radio transmitters, collectors, and software that will automatically collect and store hourly consumption data. The project is expected to result in annual water savings of 1,157 acre-feet that is currently being lost to unauthorized consumption, metering inaccuracies, systematic data handling errors, and leaks. The water conserved through the project will be used to offset groundwater pumping and to reduce demands on existing supplies in an area that has experienced drought conditions and a heightened competition for limited supplies. Agreement No. R19AP00129 Agreement Template (03/2019) 17-112 Page 6 of 50 4. PERIOD OF PERFORMANCE AND FUNDS AVAILABILITY This Agreement becomes effective on the date shown in Block 13a of Page 1 of this agreement, United States of America, Department of the Interior, Bureau of Reclamation, Assistance Agreement. The Agreement shall remain in effect until the date shown in Block 8 of Page 1 of this agreement, United States of America, Department of the Interior, Bureau of Reclamation, Assistance Agreement. The period of performance for this Agreement may only be modified through written modification of the Agreement by a Reclamation Grants Officer. No legal liability on the part of the Government for any payment may arise until funds are made available, in writing, to the Recipient by the Grants Officer. The total estimated amount of federal funding for this agreement is $1,500,000.00, of which the initial amount of federal funds available is limited to $1,499,000.00 as indicated by "this obligation" within Block 10 of Page 1 of this agreement, United States of America, Department of the Interior, Bureau of Reclamation, Assistance Agreement. 5. SCOPE OF WORK AND MILESTONES Under this Agreement, the Recipient shall replace and retrofit existing water meters with an Advanced Metering Infrastructure (AMI) fixed -based network system, including: 26,309 water meters ranging in size from 5/8 -inch to 8 -inches 13 AMI radio transmitters, 14 collectors AMI software Meters will be installed throughout the City of Newport Beach water service area. The Recipient shall include in its records the locations of the meters and network infrastructure installed under this Agreement. After review of the methodology used to estimate water conservation savings, consideration of supporting documentation provided by Recipient, and any adjustments made during the evaluation of the Project, it was determined that these improvements are expected to result in annual water savings of 1,157 acre-feet. The milestones for completing the Project are: Milestone / Task / Activity Planned Start Date Planned Completion Date Complete environmental and cultural compliance Completed September 2019 Procurement and installation of AMI system May 2020 July 2020 Begin installation of AMI meters July 2020 July 2020 AMI Meter Installation - 25% complete March 2021 AMI Meter Installation — 50% complete September 2021 Agreement No. R19AP00129 Agreement Template (03/2019) 17-113 Page 7 of 50 AMI Meter Installation — 75% complete March 2022 Meter equipment procurement May 2020 July 2022 System Testing June 2022 September 2022 Complete installation of AMI meters March 2023 6. RESPONSIBILITY OF THE PARTIES 6.1 Recipient Responsibilities 6.1.1 The Recipient shall carry out the Scope of Work (SOW) in accordance with the terms and conditions stated herein. The Recipient shall adhere to Federal, state, and local laws, regulations, and codes, as applicable, and shall obtain all required approvals and permits. If the SOW contains construction activities, the Recipient is responsible for construction inspection, oversight, and acceptance. If applicable, the Recipient shall also coordinate and obtain approvals from site owners and operators. 6.1.2 Interim Performance Reports. The Recipient shall prepare and submit to Reclamation interim Project performance reports (Interim Performance Reports) as required by Section I.10 of this Agreement. Each Interim Performance Report will include (but is not limited to) the information identified in paragraph I.10.3 and will discuss the following: • A comparison of actual accomplishments to the milestones established by the financial assistance agreement for the reporting period • The reasons why established milestones were not met, if applicable • The status of milestones from the previous reporting period that were not met, if applicable • Whether the Project is on schedule and within the original cost estimate • Any additional pertinent information or issues related to the status of the Project 6.1.3 Final Project Report. The Recipient shall prepare and submit to Reclamation a final Project performance report (Final Project Report) as required by Section I.10 of this Agreement. The Final Project Report will include (but is not limited to) the information identified in paragraph I.10.3 and will discuss the following: Whether the Project objectives and goals were met • The amount of water conserved, if applicable, including information and/or calculations supporting that amount • The amount of energy the renewable energy system is generating annually, if applicable • How the Project demonstrated collaboration, if applicable Photographs documenting the project are also appreciated. Recipient understands that Reclamation may print photos with appropriate credit to Recipient. Recipient also understands Agreement No. RI9AP00129 Agreement Template (03/2019) 17-114 Page 8 of 50 that the Final Project Report is a public document and may be made available on Reclamation's website, www.usbr.gov/watersmart/. 6.2 Reclamation Responsibilities Reclamation will monitor and provide Federal oversight of activities performed under this Agreement. Monitoring and oversight includes review and approval of financial status and performance reports, payment requests, and any other deliverables identified as part of the SOW. Additional monitoring activities may include site visits, conference calls, and other on-site and off-site monitoring activities. At the Recipient's request, Reclamation may also provide technical assistance to the Recipient in support of the SOW and objectives of this Agreement. 7. BUDGET 7.1 Budget Estimate. The following is the estimated budget for this Agreement. As Federal financial assistance agreements are cost -reimbursable, the budget provided is for estimation purposes only. Final costs incurred under the budget categories listed may be either higher or lower than the estimated costs. All costs incurred by the Recipient under this agreement must be in accordance with any pre -award clarifications conducted between the Recipient and Reclamation, as well as with the terms and conditions of this agreement. Final determination of the allowability, allocability, or reasonableness of costs incurred under this agreement is the responsibility of the Grants Officer. Recipients are encouraged to direct any questions regarding allowability, allocability or reasonableness of costs to the Grants Officer for review prior to incurrence of the costs in question. BUDGET ITEM DESCRIPTION TOTAL COST CONTRACTUAL Construction contracts $8,744,000.00 Reclamation review of Environmental Compliance $1,000.00 TOTAL DIRECT COSTS $8,745,000.00 INDIRECT COSTS None $0.00 ,r� TOTAL ESTIMATED PROJECT COST $$,745,000,00 7.2 Cost Sharing Requirement At least 50% non -Federal cost -share is required for costs incurred under this Agreement. Based on the budget estimate reflected in Section 7.1 above, the estimated Federal share of allowable costs is 17% and the Recipient's estimated non -Federal cost share is 83%. The Federal share of allowable costs shall not be expended in advance of the Recipient's non -Federal share. It is expected that expenditure of Federal and non -Federal funds based upon the estimated cost share percentages shall occur concurrently. Agreement No. R19APOO 129 Agreement Template (03/2019) 17-115 Page 9 of 50 If a bona fide need arises which requires the expenditure of Federal funds in advance of the Recipient share, then the Recipient must request written approval from the Grants Officer prior to the expenditure. Recipient's may expend their agreed upon share of costs in advance of the expenditure of Federal funds without prior written approval. 7.3 Pre -Award Incurrence of Costs The Recipient is not authorized to incur costs prior to the award of this Agreement. Costs incurred prior to the award of this agreement are not allowable. 7.4 Allowable Costs Costs incurred for the performance of this Agreement must be allowable, allocable to the project, and reasonable. The following regulations, codified within the Code of Federal Regulations (CFR), governs the allowability of costs for Federal financial assistance: 2 CFR 200 Subpart E, "Cost Principles" Expenditures for the performance of this Agreement must conform to the requirements within this CFR. The Recipient must maintain sufficient documentation to support these expenditures. Questions on the allowability of costs should be directed to the Grants Officer responsible for this Agreement. The Recipient shall not incur costs or obligate funds for any purpose pertaining to operation of the program or activities beyond the expiration date stated in the Agreement. The only costs which are authorized for a period of up to 90 days following the project performance period are those strictly associated with closeout activities for preparation of the final reports. 7.5 Revision of Budget and Program Plans In accordance with 2 CFR 200.308(g) the recipient must request prior written approval for any of the following changes: (a) A change in the approved scope of work or associated tasks, even if there is no associated budget revisions. (b) Revisions which require additional Federal funds to complete the project. (c) Revisions which involve specific costs for which prior written approval requirements may be imposed consistent with OMB cost principles listed in 2 CFR 200 Subpart E "Cost Principles". 7.6 Modifications Any changes to this Agreement shall be made by means of a written modification. Reclamation may make changes to the Agreement by means of a unilateral modification to address changes in address, no -cost time extensions, changes to Key Personnel, the addition of previously agreed upon funding, or administrative corrections which do not impact the terms and conditions of this Agreement No. R19AP0o 129 Agreement Template (03/2019) 17-116 Page 10 of 50 agreement. Additionally, a unilateral modification may be utilized by Reclamation if it should become necessary to suspend or terminate the Agreement in accordance with 2 CFR 200.338. All other changes shall be made by means of a bilateral modification to the Agreement. No oral statement made by any person, or written statement by any person other than the Grants Officer, shall be allowed in any manner or degree to modify or otherwise effect the terms of the Agreement. All requests for modification of the Agreement shall be made in writing, provide a full description of the reason for the request, and be sent to the attention of the Grants Officer. Any request for project extension shall be made at least 45 days prior to the expiration date of the Agreement or the expiration date of any extension period that may have been previously granted. Any determination to extend the period of performance or to provide follow-on funding for continuation of a project is solely at the discretion of Reclamation. 8. KEY PERSONNEL 8.1 Recipient's Key Personnel. The Recipient's Project Manager for this Agreement shall be: Steffen Catron, Utilities Manager City of Newport Beach Utilities Department 949 West 16th St. Newport Beach, CA 92663-9998 949-718-3402 scatron(d)newportbeachca. gov 9. LIMITATION OF AUTHORITIES 9.1 Grants Officer. The Grants Officer is the only official with legal delegated authority to represent Reclamation. The Grants Officer's responsibilities include, but are not limited to, the following: (a) Formally obligate Reclamation to expend funds or change the funding level of the Agreement; (b) Approve through formal modification changes in the scope of work and/or budget; (c) Approve through formal modification any increase or decrease in the period of performance of the Agreement; (d) Approve through formal modification changes in any of the expressed terms, conditions, or specifications of the Agreement; Agreement No. RI9AP00129 Agreement Template (03/2019) 17-117 Page 11 of 50 (e) Be responsible for the overall administration, management, and other non -programmatic aspects of the Agreement including, but not limited to, interpretation of financial assistance statutes, regulations, circulars, policies, and terms of the Agreement; Where applicable, ensures that Reclamation complies with the administrative requirements required by statutes, regulations, circulars, policies, and terms of the Agreement. 9.2 Grants Management Specialist (GMS). The Grants Management Specialist is the primary administrative point of contact for this agreement and should be contacted regarding issues related to the day-to-day management of the agreement. Requests for approval regarding the terms and conditions of the agreement, including but not limited to modifications and prior approval, may only be granted, in writing, by a Reclamation Grants Officer. Please note that for some agreements, the Grants Officer and the Grants Management Specialist may be the same individual. 10. REPORTING REQUIREMENTS AND DISTRIBUTION 10.1 Noncompliance. Failure to comply with the reporting requirements contained in this Agreement may be considered a material noncompliance with the terms and conditions of the award. Noncompliance may result in withholding of payments pending receipt of required reports, denying both the use of funds and matching credit for all or part of the cost of the activity or action not in compliance, whole or partial suspension or termination of the Agreement, recovery of funds paid under the Agreement, withholding of future awards, or other legal remedies in accordance with 2 CFR 200.338. 10.2 Financial Reports. Federal Financial Reports shall be submitted by means of the SF -425 and shall be submitted according to the Report Frequency and Distribution schedule below. All financial reports shall be signed by an Authorized Certifying Official for the Recipient's organization. 10.3 Monitoring and Reporting Program Performance (2 CFR 200.328). (a) Monitoring by the non -Federal entity. The non -Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non -Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non - Federal entity must cover each program, function or activity. See also 200.331 Requirements for pass-through entities. (b) Non -construction performance reports. The Federal awarding agency must use standard, OMB -approved data elements for collection of performance information (including performance progress reports, Research Performance Progress Report, or such future collections as may be approved by OMB and listed on the OMB Web site). Agreement No. R19AP00129 Agreement Template (03/2019) 17-118 Page 12 of 50 (1) The non -Federal entity must submit performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity. Intervals must be no less frequent than annually nor more frequent than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes. Annual reports must be due 90 calendar days after the reporting period; quarterly or semiannual reports must be due 30 calendar days after the reporting period. Alternatively, the Federal awarding agency or pass-through entity may require annual reports before the anniversary dates of multiple year Federal awards. The final performance report will be due 90 calendar days after the period of performance end date. If a justified request is submitted by a non -Federal entity, the Federal agency may extend the due date for any performance report. (2) The non -Federal entity must submit performance reports using OMB -approved governmentwide standard information collections when providing performance information. As appropriate in accordance with above mentioned information collections, these reports will contain, for each Federal award, brief information on the following unless other collections are approved by OMB: (i) A comparison of actual accomplishments to the objectives of the Federal award established for the period. Where the accomplishments of the Federal award can be quantified, a computation of the cost (for example, related to units of accomplishment) may be required if that information will be useful. Where performance trend data and analysis would be informative to the Federal awarding agency program, the Federal awarding agency should include this as a performance reporting requirement. (ii) The reasons why established goals were not met, if appropriate. (iii) Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs. (c) Construction performance reports. For the most part, onsite technical inspections and certified percentage of completion data are relied on heavily by Federal awarding agencies and pass-through entities to monitor progress under Federal awards and subawards for construction. The Federal awarding agency may require additional performance reports only when considered necessary. (d) Significant developments. Events may occur between the scheduled performance reporting dates that have significant impact upon the supported activity. In such cases, the non -Federal entity must inform the Federal awarding agency or pass-through entity as soon as the following types of conditions become known: Agreement No. R19AP00129 Agreement Template (03/2019) 17-119 Page 13 of 50 (1) Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the Federal award. This disclosure must include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation. (2) Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned. Reclamation requires Performance reporting for all financial assistance awards, both Construction and non -Construction. Performance reports for Construction agreements shall meet the same minimum requirements outlined in 2 CFR 200.328(b)(2) above. 10.4 Report Frequency and Distribution. The following table sets forth the reporting requirements for this Agreement. Please note the first report due date listed for each type of report. Required Reports Interim Reports Final Report Performance Report Format No specific format required. See content Summary of activities completed requirements within Section 9.3 (2 CFR during the entire period of 200.328) above. performance is required. See content requirements within Section 9.3 (2 CFR 200.328) above. Reporting Frequency Semi -Annual Final Report due within 90 days after the end of the period of performance. Reporting Period October 1 through March 31 and April 1 Entire period of performance through September 30. Due Date Within 30 days after the end of the Final Report due within 90 days Reporting Period. after the end of the period of performance or completion of the project. First Report Due The first performance report is due for N/A Date reporting period ending 09/30/2020. Submit to: sha-dro-faonerations iNsbr.aov sha-dro-faouerations(@usbr.gov Federal Financial Report Format SF -425 (all sections must be completed) SF-425(all sections must be completed) Reporting Frequency Semi -Annual Final Report due within 90 days after the end of the period of performance. Reporting Period October 1 through March 31 and April 1 Entire period of performance through September 30. Agreement No. R19AP00129 Agreement Template (03/2019) 17-120 Page 14 of 50 Required Reports Interim Reports Final Report Due Date Within 30 days after the end of the Final Report due within 90 days Reporting Period. after the end of the period of performance or completion of project. First Report Due The first Federal financial report is due N/A Date for reporting period ending 09/30/2020. Submit to: sha-dro-faoperations(k,usbr.gov sha-dro-faoperations(a)usbr.eov 11. REGULATORY COMPLIANCE The Recipient agrees to comply or assist Reclamation with all regulatory compliance requirements and all applicable state, Federal, and local environmental and cultural and paleontological resource protection laws and regulations as applicable to this project. These may include, but are not limited to, the National Environmental Policy Act (NEPA), including the Council on Environmental Quality and Department of the Interior regulations implementing NEPA, the Clean Water Act, the Endangered Species Act, consultation with potentially affected Tribes, and consultation with the State Historic Preservation Office. If the Recipient begins project activities that require environmental or other regulatory compliance approval prior to receipt of written notice from the Grants Officer that all such clearances have been obtained, then Reclamation reserves the right to initiate remedies for non-compliance as defined by 2 CFR 200.338 up to and including unilateral termination of this agreement. 12. AGRICULTURAL OPERATIONS [Public Law 111-11, Section 9504(a)(3)(B)] The Recipient shall not use any associated water savings to increase the total irrigated acreage of the Recipient or otherwise increase the consumptive use of water in the operation of the Recipient, as determined pursuant to the law of the State in which the operation of Recipient is located. 13. TITLE TO IMPROVEMENTS [Public Law 111-11, Section 9504(a)(3)(D)] If the activities funded under this Agreement result in an infrastructure improvement to a federally owned facility, the Federal Government shall continue to hold title to the facility and improvements to the facility. 14. OPERATION AND MAINTENANCE COSTS [Public Law 111-11, Section 9504(a)(3)(E)(iv.)] The non -Federal share of the cost of operating and maintaining any infrastructure improvement funded through this Agreement shall be 100 percent. 15. LIABILITY [Public Law 111-11, Section 9504(a)(3)(F)] Agreement No. RI9AP00129 Agreement Template (03/2019) 17-121 Page 15 of 50 (a) IN GENERAL.—Except as provided under chapter 171 of title 28, United States Code (commonly known as the "Federal Tort Claims Act"), the United States shall not be liable for monetary damages of any kind for any injury arising out of an act, omission, or occurrence that arises in relation to any facility created or improved under this Agreement, the title of which is not held by the United States. (b) TORT CLAIMS ACT.—Nothing in this section increases the liability of the United States beyond that provided in chapter 171 of title 28, United States Code (commonly known as the "Federal Tort Claims Act"). Agreement No. RI9AP00129 Agreement Template (03/2019) 17-122 Page 16 of 50 II. RECLAMATION STANDARD TERMS AND CONDITIONS 1. REGULATIONS The regulations at 2 CFR Subtitle A, Chapter II, Part 200 "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards", are hereby incorporated by reference as though set forth in full text. Failure of a Recipient to comply with any applicable regulation or circular may be the basis for withholding payments for proper charges made by the Recipient and/or for termination of support. 2. PAYMENT 2.1 Payment (2 CFR 200.305). (a) For states, payments are governed by Treasury -State CMIA agreements and default procedures codified at 31 CFR Part 205 "Rules and Procedures for Efficient Federal -State Funds Transfers" and TFM 4A-2000 Overall Disbursing Rules for All Federal Agencies. (b) For non -Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass- through entity and the disbursement by the non -Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. See also 200.302 Financial management paragraph (b)(6). Except as noted elsewhere in this part, Federal agencies must require recipients to use only OMB -approved standard govemmentwide information collection requests to request payment. (1) The non -Federal entity must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non -Federal entity, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a non -Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non -Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non -Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non -Federal entity must make timely payment to contractors in accordance with the contract provisions. (2) Whenever possible, advance payments must be consolidated to cover anticipated cash needs for all Federal awards made by the Federal awarding agency to the recipient. Agreement No. R19AP00129 Agreement Template (03/2019) 17-123 Page 17 of 50 (i) Advance payment mechanisms include, but are not limited to, Treasury check and electronic funds transfer and must comply with applicable guidance in 31 CFR part 208. (ii) Non -Federal entities must be authorized to submit requests for advance payments and reimbursements at least monthly when electronic fund transfers are not used, and as often as they like when electronic transfers are used, in accordance with the provisions of the Electronic Fund Transfer Act (15 U.S.C. 1693-1693r). (3) Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per 200.207 Specific conditions, or when the non -Federal entity requests payment by reimbursement. This method may be used on any Federal award for construction, or if the major portion of the construction project is accomplished through private market financing or Federal loans, and the Federal award constitutes a minor portion of the project. When the reimbursement method is used, the Federal awarding agency or pass-through entity must make payment within 30 calendar days after receipt of the billing, unless the Federal awarding agency or pass-through entity reasonably believes the request to be improper. (4) If the non -Federal entity cannot meet the criteria for advance payments and the Federal awarding agency or pass-through entity has determined that reimbursement is not feasible because the non -Federal entity lacks sufficient working capital, the Federal awarding agency or pass-through entity may provide cash on a working capital advance basis. Under this procedure, the Federal awarding agency or pass- through entity must advance cash payments to the non -Federal entity to cover its estimated disbursement needs for an initial period generally geared to the non -Federal entity's disbursing cycle. Thereafter, the Federal awarding agency or pass-through entity must reimburse the non -Federal entity for its actual cash disbursements. Use of the working capital advance method of payment requires that the pass-through entity provide timely advance payments to any subrecipients in order to meet the subrecipient's actual cash disbursements. The working capital advance method of payment must not be used by the pass-through entity if the reason for using this method is the unwillingness or inability of the pass-through entity to provide timely advance payments to the subrecipient to meet the subrecipient's actual cash disbursements. (5) Use of resources before requesting cash advance payments. To the extent available, the non -Federal entity must disburse funds available from program income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments. (6) Unless otherwise required by Federal statutes, payments for allowable costs by non - Federal entities must not be withheld at any time during the period of performance unless the conditions of 200.207 Specific conditions, Subpart D—Post Federal Award Agreement No. R19AP00129 Agreement Template (03/2019) 17-124 Page 18 of 50 Requirements of this part, 200.338 Remedies for Noncompliance, or one or more of the following applies: (i) The non -Federal entity has failed to comply with the project objectives, Federal statutes, regulations, or the terms and conditions of the Federal award. (ii) The non -Federal entity is delinquent in a debt to the United States as defined in OMB Guidance A-129, "Policies for Federal Credit Programs and Non -Tax Receivables." Under such conditions, the Federal awarding agency or pass- through entity may, upon reasonable notice, inform the non -Federal entity that payments must not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (iii) A payment withheld for failure to comply with Federal award conditions, but without suspension of the Federal award, must be released to the non -Federal entity upon subsequent compliance. When a Federal award is suspended, payment adjustments will be made in accordance with 200.342 Effects of suspension and termination. (iv) A payment must not be made to a non -Federal entity for amounts that are withheld by the non -Federal entity from payment to contractors to assure satisfactory completion of work. A payment must be made when the non -Federal entity actually disburses the withheld funds to the contractors or to escrow accounts established to assure satisfactory completion of work. (7) Standards governing the use of banks and other institutions as depositories of advance payments under Federal awards are as follows. (i) The Federal awarding agency and pass-through entity must not require separate depository accounts for funds provided to a non -Federal entity or establish any eligibility requirements for depositories for funds provided to the non -Federal entity. However, the non -Federal entity must be able to account for the receipt, obligation and expenditure of funds. (ii) Advance payments of Federal funds must be deposited and maintained in insured accounts whenever possible. (8) The non -Federal entity must maintain advance payments of Federal awards in interest-bearing accounts, unless the following apply. (i) The non -Federal entity receives less than $120,000 in Federal awards per year. (ii) The best reasonably available interest-bearing account would not be expected to earn interest in excess of $500 per year on Federal cash balances. Agreement No. R19AP00129 Agreement Template (03/2019) 17-125 Page 19 of 50 (iii) The depository would require an average or minimum balance so high that it would not be feasible within the expected Federal and non -Federal cash resources. (iv) A foreign government or banking system prohibits or precludes interest bearing accounts. (9) Interest earned amounts up to $500 per year may be retained by the non -Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the Department of Health and Human Services Payment Management System (PMS) through an electronic medium using either Automated Clearing House (ACH) network or a Fedwire Funds Service payment. Remittances must include pertinent information of the payee and nature of payment in the memo area (often referred to as "addenda records" by Financial Institutions) as that will assist in the timely posting of interested earned on federal funds. Pertinent details include the Payee Account Number (PAN) if the payment originated from PMS, or Agency information if the payment originated from ASAP, NSF or another federal agency payment system. The remittance must be submitted as follows: (i) For ACH Returns: Routing Number: 051036706 Account number: 303000 Bank Name and Location: Credit Gateway—ACH Receiver St. Paul, MN (ii) For Fedwire Returns*: Routing Number: 021030004 Account number: 75010501 Bank Name and Location: Federal Reserve Bank Treas NYC/Funds Transfer Division New York, NY (* Please note organization initiating payment is likely to incur a charge from your Financial Institution for this type of payment) (iii) For International ACH Returns: Beneficiary Account: Federal Reserve Bank of New York/ITS (FRBNY/ITS) Bank: Citibank N.A. (New York) Swift Code: CITIUS33 Account Number: 36838868 Bank Address: 388 Greenwich Street, New York, NY 10013 USA Payment Details (Line 70): Agency Name (abbreviated when possible) and ALC Agency POC: Michelle Haney, (301) 492-5065 Agreement No. R19AP00129 Agreement Template (03/2019) 17-126 Page 20 of 50 (iv) For recipients that do not have electronic remittance capability, please make check** payable to: "The Department of Health and Human Services." Mail Check to Treasury approved lockbox: HHS Program Support Center, P.O. Box 530231, Atlanta, GA 30353-0231 (** Please allow 4-6 weeks for processing of a payment by check to be applied to the appropriate PMS account) (v) Any additional information/instructions may be found on the PMS Web site at http://www.dpm.psc.gov/. 2.2 Payment Method. Recipients must utilize the Department of Treasury Automated Standard Application for Payments (ASAP) payment system to request advance or reimbursement payments. ASAP is a Recipient -initiated payment and information system designed to provide a single point of contact for the request and delivery of Federal funds. ASAP is the only allowable method for request and receipt of payment. Recipient procedures must minimize the time elapsing between the drawdown of Federal funds and the disbursement for agreement purposes. In accordance with 2 CFR 25.200(b)(2) the Recipient shall "Maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by an agency". If the Recipient allows their SAM registration to lapse, the Recipient's accounts within ASAP will be automatically suspended by Reclamation until such time as the Recipient renews their SAM registration. 3. PROCUREMENT STANDARDS (2 CFR 200.317 through 200.326) 200.317 Procurements by States. When procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements from its non -Federal funds. The state will comply with 200.322 Procurement of recovered materials and ensure that every purchase order or other contract includes any clauses required by section 200.326 Contract provisions. All other non -Federal entities, including subrecipients of a state, will follow 200.318 General procurement standards through 200.326 Contract provisions. 200.318 General procurement standards. (a) The non -Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in this part. (b) Non -Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. Agreement No. R19AP00129 Agreement Template (03/2019) 17-127 (c) Page 21 of 50 (1) The non -Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non -Federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, non -Federal entities may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non -Federal entity. (2) If the non -Federal entity has a parent, affiliate, or subsidiary organization that is not a state, local government, or Indian tribe, the non -Federal entity must also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest means that because of relationships with a parent company, affiliate, or subsidiary organization, the non -Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization. (d) The non -Federal entity's procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. (e) To foster greater economy and efficiency, and in accordance with efforts to promote cost- effective use of shared services across the Federal Government, the non -Federal entity is encouraged to enter into state and local intergovernmental agreements or inter -entity agreements where appropriate for procurement or use of common or shared goods and services. (f) The non -Federal entity is encouraged to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. (g) The non -Federal entity is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost. Agreement No. R19AP00129 Agreement Template (03/2019) 17-128 Page 22 of 50 (h) The non -Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. See also 200.212 Suspension and debarment. (i) The non -Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. 0) (1) The non -Federal entity may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time and materials type contract means a contract whose cost to a non -Federal entity is the sum of: (i) The actual cost of materials; and (ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit. (2) Since this formula generates an open-ended contract price, a time -and -materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the non -Federal entity awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. (k) The non -Federal entity alone must be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the non -Federal entity of any contractual responsibilities under its contracts. The Federal awarding agency will not substitute its judgment for that of the non -Federal entity unless the matter is primarily a Federal concern. Violations of law will be referred to the local, state, or Federal authority having proper jurisdiction. 200.319 Competition. (a) All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to: Agreement No. R19AP00129 Agreement Template (03/2019) 17-129 Page 23 of 50 (1) Placing unreasonable requirements on firms in order for them to qualify to do business; (2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies; (4) Noncompetitive contracts to consultants that are on retainer contracts; (5) Organizational conflicts of interest; (6) Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance or other relevant requirements of the procurement; and (7) Any arbitrary action in the procurement process. (b) The non -Federal entity must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. (c) The non -Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equivalent" description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and (2) Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. (d) The non -Federal entity must ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough Agreement No. RI9AP00129 Agreement Template (03/2019) 17-130 Page 24 of 50 qualified sources to ensure maximum open and free competition. Also, the non -Federal entity must not preclude potential bidders from qualifying during the solicitation period. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 20141 200.320 Methods of procurement to be followed. The non -Federal entity must use one of the following methods of procurement. (a) Procurement by micro -purchases. Procurement by micro -purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro - purchase threshold (200.67 Micro -purchase). To the extent practicable, the non -Federal entity must distribute micro -purchases equitably among qualified suppliers. Micro - purchases may be awarded without soliciting competitive quotations if the non -Federal entity considers the price to be reasonable. (b) Procurement by small purchase procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. (c) Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction, if the conditions in paragraph (c)(1) of this section apply. (1) In order for sealed bidding to be feasible, the following conditions should be present: (i) A complete, adequate, and realistic specification or purchase description is available; (ii) Two or more responsible bidders are willing and able to compete effectively for the business; and (iii) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price. (2) If sealed bids are used, the following requirements apply: (i) Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids, for state, local, and tribal governments, the invitation for bids must be publically advertised; Agreement No. R19AP00129 Agreement Template (0312019) 17-131 Page 25 of 50 (ii) The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond; (iii) All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly; (iv) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of, and (v) Any or all bids may be rejected if there is a sound documented reason. (d) Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost -reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply: (1) Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical; (2) Proposals must be solicited from an adequate number of qualified sources; (3) The non -Federal entity must have a written method for conducting technical evaluations of the proposals received and for selecting recipients; (4) Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and (5) The non -Federal entity may use competitive proposal procedures for qualifications - based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort. (e) [Reserved] Agreement No. R19AP00129 Agreement Template (03/2019) 17-132 Page 26 of 50 (f) Procurement by noncompetitive proposals. Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply: (1) The item is available only from a single source; (2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; (3) The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non -Federal entity; or (4) After solicitation of a number of sources, competition is determined inadequate. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014] 200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. (a) The non -Federal entity must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. (b) Affirmative steps must include: (1) Placing qualified small and minority businesses and women's business enterprises on solicitation lists; (2) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; (4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; (5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section. Agreement No. R19AP00129 Agreement Template (03/2019) 17-133 Page 27 of 50 200.322 Procurement of recovered materials. A non -Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014] 200.323 Contract cost and price. (a) The non -Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non -Federal entity must make independent estimates before receiving bids or proposals. (b) The non -Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. (c) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non -Federal entity under Subpart E—Cost Principles of this part. The non -Federal entity may reference its own cost principles that comply with the Federal cost principles. (d) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used. 200.324 Federal awarding agency or pass-through entity review. (a) The non -Federal entity must make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a Agreement No. R19AP00129 Agreement Template (03/2019) 17-134 Page 28 of 50 solicitation document. However, if the non -Federal entity desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass-through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase. (b) The non -Federal entity must make available upon request, for the Federal awarding agency or pass-through entity pre -procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when: (1) The non -Federal entity's procurement procedures or operation fails to comply with the procurement standards in this part; (2) The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation; (3) The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a "brand name" product; (4) The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or (5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold. (c) The non -Federal entity is exempt from the pre -procurement review in paragraph (b) of this section if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part. (1) The non -Federal entity may request that its procurement system be reviewed by the Federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high -dollar funding, and third party contracts are awarded on a regular basis; (2) The non -Federal entity may self -certify its procurement system. Such self - certification must not limit the Federal awarding agency's right to survey the system. Under a self -certification procedure, the Federal awarding agency may rely on written assurances from the non -Federal entity that it is complying with these standards. The non -Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review. 200.325 Bonding requirements. For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency or pass-through entity may accept the Agreement No. R19AP00129 Agreement Template (03/2019) 17-135 Page 29 of 50 bonding policy and requirements of the non -Federal entity provided that the Federal awarding agency or pass-through entity has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows: (a) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. (b) A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. (c) A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract. 200.326 Contract provisions. The non -Federal entity's contracts must contain the applicable provisions described in Appendix II to Part 200—Contract Provisions for non -Federal Entity Contracts Under Federal Awards. 4. EQUIPMENT (2 CFR 200.313) See also 200.439 Equipment and other capital expenditures. (a) Title. Subject to the obligations and conditions set forth in this section, title to equipment acquired under a Federal award will vest upon acquisition in the non -Federal entity. Unless a statute specifically authorizes the Federal agency to vest title in the non -Federal entity without further obligation to the Federal Government, and the Federal agency elects to do so, the title must be a conditional title. Title must vest in the non -Federal entity subject to the following conditions: (1) Use the equipment for the authorized purposes of the project during the period of performance, or until the property is no longer needed for the purposes of the project. (2) Not encumber the property without approval of the Federal awarding agency or pass- through entity. (3) Use and dispose of the property in accordance with paragraphs (b), (c) and (e) of this section. Agreement No. RI9AP00129 Agreement Template (03/2019) 17-136 Page 30 of 50 (b) A state must use, manage and dispose of equipment acquired under a Federal award by the state in accordance with state laws and procedures. Other non -Federal entities must follow paragraphs (c) through (e) of this section. (c) Use. (1) Equipment must be used by the non -Federal entity in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award, and the non -Federal entity must not encumber the property without prior approval of the Federal awarding agency. When no longer needed for the original program or project, the equipment may be used in other activities supported by the Federal awarding agency, in the following order of priority: (i) Activities under a Federal award from the Federal awarding agency which funded the original program or project, then (ii) Activities under Federal awards from other Federal awarding agencies. This includes consolidated equipment for information technology systems. (2) During the time that equipment is used on the project or program for which it was acquired, the non -Federal entity must also make equipment available for use on other projects or programs currently or previously supported by the Federal Government, provided that such use will not interfere with the work on the projects or program for which it was originally acquired. First preference for other use must be given to other programs or projects supported by Federal awarding agency that financed the equipment and second preference must be given to programs or projects under Federal awards from other Federal awarding agencies. Use for non -federally -funded programs or projects is also permissible. User fees should be considered if appropriate. (3) Notwithstanding the encouragement in 200.307 Program income to earn program income, the non -Federal entity must not use equipment acquired with the Federal award to provide services for a fee that is less than private companies charge for equivalent services unless specifically authorized by Federal statute for as long as the Federal Government retains an interest in the equipment. (4) When acquiring replacement equipment, the non -Federal entity may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement property. (d) Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: Agreement No. RI9AP00129 Agreement Template (03/2019) 17-137 Page 31 of 50 (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non -Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. (e) Disposition. When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non -Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with Federal awarding agency disposition instructions: (1) Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation to the Federal awarding agency. (2) Except as provided in 200.312 Federally -owned and exempt property, paragraph (b), or if the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair -market value in excess of $5,000 may be retained by the non -Federal entity or sold. The Federal awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the Federal awarding agency's percentage of participation in the cost of the original purchase. If the equipment is sold, the Federal awarding agency may permit the non -Federal entity to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses. (3) The non -Federal entity may transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, the non -Federal entity must be Agreement No. R19AP00129 Agreement Template (03!2019) 17-138 Page 32 of 50 entitled to compensation for its attributable percentage of the current fair market value of the property. (4) In cases where a non -Federal entity fails to take appropriate disposition actions, the Federal awarding agency may direct the non -Federal entity to take disposition actions. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75884, Dec. 19, 2014] 5. SUPPLIES (2 CFR 200.314) See also 200.453 Materials and supplies costs, including costs of computing devices. (a) Title to supplies will vest in the non -Federal entity upon acquisition. If there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other Federal award, the non -Federal entity must retain the supplies for use on other activities or sell them, but must, in either case, compensate the Federal Government for its share. The amount of compensation must be computed in the same manner as for equipment. See 200.313 Equipment, paragraph (e)(2) for the calculation methodology. (b) As long as the Federal Government retains an interest in the supplies, the non -Federal entity must not use supplies acquired under a Federal award to provide services to other organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute. 6. INSPECTION Reclamation has the right to inspect and evaluate the work performed or being performed under this Agreement, and the premises where the work is being performed, at all reasonable times and in a manner that will not unduly delay the work. If Reclamation performs inspection or evaluation on the premises of the Recipient or a sub -Recipient, the Recipient shall furnish and shall require sub -recipients to furnish all reasonable facilities and assistance for the safe and convenient performance of these duties. 7. AUDIT REQUIREMENTS (2 CFR 200.501) (a) Audit required. A non -Federal entity that expends $750,000 or more during the non - Federal entity's fiscal year in Federal awards must have a single or program -specific audit conducted for that year in accordance with the provisions of this part. (b) Single audit. A non -Federal entity that expends $750,000 or more during the non -Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with 200.514 Scope of audit except when it elects to have a program -specific audit conducted in accordance with paragraph (c) of this section. Agreement No. RI9AP00129 Agreement Template (03/2019) 17-139 Page 33 of 50 (c) Program -specific audit election. When an auditee expends Federal awards under only one Federal program (excluding R&D) and the Federal program's statutes, regulations, or the terms and conditions of the Federal award do not require a financial statement audit of the auditee, the auditee may elect to have a program -specific audit conducted in accordance with 200.507 Program -specific audits. A program -specific audit may not be elected for R&D unless all of the Federal awards expended were received from the same Federal agency, or the same Federal agency and the same pass-through entity, and that Federal agency, or pass-through entity in the case of a subrecipient, approves in advance a program -specific audit. (d) Exemption when Federal awards expended are less than $750,000. A non -Federal entity that expends less than $750,000 during the non -Federal entity's fiscal year in Federal awards is exempt from Federal audit requirements for that year, except as noted in 200.503 Relation to other audit requirements, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and Government Accountability Office (GAO). (e) Federally Funded Research and Development Centers (FFRDC). Management of an auditee that owns or operates a FFRDC may elect to treat the FFRDC as a separate entity for purposes of this part. (f) Subrecipients and Contractors. An auditee may simultaneously be a recipient, a subrecipient, and a contractor. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. The payments received for goods or services provided as a contractor are not Federal awards. Section 200.330 Subrecipient and contractor determinations sets forth the considerations in determining whether payments constitute a Federal award or a payment for goods or services provided as a contractor. (g) Compliance responsibility for contractors. In most cases, the auditee's compliance responsibility for contractors is only to ensure that the procurement, receipt, and payment for goods and services comply with Federal statutes, regulations, and the terms and conditions of Federal awards. Federal award compliance requirements normally do not pass through to contractors. However, the auditee is responsible for ensuring compliance for procurement transactions which are structured such that the contractor is responsible for program compliance or the contractor's records must be reviewed to determine program compliance. Also, when these procurement transactions relate to a major program, the scope of the audit must include determining whether these transactions are in compliance with Federal statutes, regulations, and the terms and conditions of Federal awards. (h) For-profit subrecipient. Since this part does not apply to for-profit subrecipients, the pass- through entity is responsible for establishing requirements, as necessary, to ensure compliance by for-profit subrecipients. The agreement with the for-profit subrecipient must describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. Methods to ensure compliance for Federal awards made to for - Agreement No. R19AP00129 Agreement Template (03/2019) 17-140 Page 34 of 50 profit subrecipients may include pre -award audits, monitoring during the agreement, and post -award audits. See also 200.331 Requirements for pass-through entities. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014] 8. REMEDIES FOR NONCOMPLIANCE (2 CFR 200.338) 200.338 Remedies for noncompliance. If a non -Federal entity fails to comply with Federal statutes, regulations or the terms and conditions of a Federal award, the Federal awarding agency or pass-through entity may impose additional conditions, as described in 200.207 Specific conditions. If the Federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency or pass-through entity may take one or more of the following actions, as appropriate in the circumstances: (a) Temporarily withhold cash payments pending correction of the deficiency by the non - Federal entity or more severe enforcement action by the Federal awarding agency or pass-through entity. (b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. (c) Wholly or partly suspend or terminate the Federal award. (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding agency). (e) Withhold further Federal awards for the project or program. (f) Take other remedies that may be legally available. 9. TERMINATION (2 CFR 200.339) (a) The Federal award may be terminated in whole or in part as follows: (1) By the Federal awarding agency or pass-through entity, if a non -Federal entity fails to comply with the terms and conditions of a Federal award; (2) By the Federal awarding agency or pass-through entity for cause; (3) By the Federal awarding agency or pass-through entity with the consent of the non - Federal entity, in which case the two parties must agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated; or Agreement No. R19AP00129 Agreement Template (03/2019) 17-141 Page 35 of 50 (4) By the non -Federal entity upon sending to the Federal awarding agency or pass- through entity written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Federal awarding agency or pass-through entity determines in the case of partial termination that the reduced or modified portion of the Federal award or subaward will not accomplish the purposes for which the Federal award was made, the Federal awarding agency or pass-through entity may terminate the Federal award in its entirety. (b) When a Federal award is terminated or partially terminated, both the Federal awarding agency or pass-through entity and the non -Federal entity remain responsible for compliance with the requirements in 200.343 Closeout and 200.344 Post -closeout adjustments and continuing responsibilities. 10. DEBARMENT AND SUSPENSION (2 CFR 1400) The Department of the Interior regulations at 2 CFR 1400—Governmentwide Debarment and Suspension (Nonprocurement), which adopt the common rule for the governmentwide system of debarment and suspension for nonprocurement activities, are hereby incorporated by reference and made a part of this Agreement. By entering into this grant or cooperative Agreement with the Bureau of Reclamation, the Recipient agrees to comply with 2 CFR 1400, Subpart C, and agrees to include a similar term or condition in all lower -tier covered transactions. These regulations are available at http://www.gpoaccess.gov/ecfr/. 11. DRUG-FREE WORKPLACE (2 CFR 182 and 1401) The Department of the Interior regulations at 2 CFR 140 1 —Governmentwide Requirements for Drug -Free Workplace (Financial Assistance), which adopt the portion of the Drug -Free Workplace Act of 1988 (41 U.S.C. 701 et seq, as amended) applicable to grants and cooperative agreements, are hereby incorporated by reference and made a part of this agreement. By entering into this grant or cooperative agreement with the Bureau of Reclamation, the Recipient agrees to comply with 2 CFR 182. 12. ASSURANCES AND CERTIFICATIONS INCORPORATED BY REFERENCE The provisions of the Assurances, SF 424B or SF 424D as applicable, executed by the Recipient in connection with this Agreement shall apply with full force and effect to this Agreement. All anti -discrimination and equal opportunity statutes, regulations, and Executive Orders that apply to the expenditure of funds under Federal contracts, grants, and cooperative Agreements, loans, and other forms of Federal assistance. The Recipient shall comply with Title VI or the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and any program -specific statutes with anti -discrimination requirements. The Recipient shall comply with civil rights laws including, but not limited to, the Fair Housing Act, the Fair Credit Reporting Act, the Americans Agreement No. R19AP00129 Agreement Template (03/2019) 17-142 Page 36 of 50 with Disabilities Act, Title VII of the Civil Rights Act of 1964, the Equal Educational Opportunities Act, the Age Discrimination in Employment Act, and the Uniform Relocation Act. Such Assurances also include, but are not limited to, the promise to comply with all applicable Federal statutes and orders relating to nondiscrimination in employment, assistance, and housing; the Hatch Act; Federal wage and hour laws and regulations and work place safety standards; Federal environmental laws and regulations and the Endangered Species Act; and Federal protection of rivers and waterways and historic and archeological preservation. 13. COVENANT AGAINST CONTINGENT FEES The Recipient warrants that no person or agency has been employed or retained to solicit or secure this Agreement upon an Agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide offices established and maintained by the Recipient for the purpose of securing Agreements or business. For breach or violation of this warranty, the Government shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement amount, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee. 14. TRAFFICKING VICTIMS PROTECTION ACT OF 2000 (2 CFR 175.15) Trafficking in persons. (a) Provisions applicable to a recipient that is a private entity. (1) You as the recipient, your employees, subrecipients under this award, and subrecipients' employees may not (i) Engage in severe forms of trafficking in persons during the period of time that the award is in effect; (ii) Procure a commercial sex act during the period of time that the award is in effect; or (iii) Use forced labor in the performance of the award or subawards under the award. (2) We as the Federal awarding agency may unilaterally terminate this award, without penalty, if you or a subrecipient that is a private entity — (i) Is determined to have violated a prohibition in paragraph a. l of this award term; or (ii) Has an employee who is determined by the agency official authorized to terminate the award to have violated a prohibition in paragraph a.I of this award term through conduct that is either: (A) Associated with performance under this award; or Agreement No. R 19APo0129 Agreement Template (03/2019) 17-143 Page 37 of 50 (B) Imputed to you or the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, "OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)," as implemented by our agency at 2 CFR part 1400. (b) Provision applicable to a recipient other than a private entity. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if a subrecipient that is a private entity— (1) Is determined to have violated an applicable prohibition in paragraph a. l of this award term; or (2) Has an employee who is determined by the agency official authorized to terminate the award to have violated an applicable prohibition in paragraph a.I of this award term through conduct that is either: (i) Associated with performance under this award; or (ii) Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, "OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)," as implemented by our agency at 2 CFR part 1400. (c) Provisions applicable to any recipient. (1) You must inform us immediately of any information you receive from any source alleging a violation of a prohibition in paragraph a.1 of this award term. (2) Our right to terminate unilaterally that is described in paragraph a.2 or b of this section: (i) Implements section 106(8) of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7104(g)), and (ii) Is in addition to all other remedies for noncompliance that are available to us under this award. (3) You must include the requirements of paragraph a. l of this award term in any subaward you make to a private entity. (d) Definitions. For purposes of this award term: (1) "Employee" means either: Agreement No. R19AP00129 Agreement Template (03/2019) 17-144 Page 38 of 50 (i) An individual employed by you or a subrecipient who is engaged in the performance of the project or program under this award; or (ii) Another person engaged in the performance of the project or program under this award and not compensated by you including, but not limited to, a volunteer or individual whose services are contributed by a third party as an in-kind contribution toward cost sharing or matching requirements. (2) "Forced labor" means labor obtained by any of the following methods: the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. (3) "Private entity": (i) Means any entity other than a state, local government, Indian tribe, or foreign public entity, as those terms are defined in 2 CFR 175.25. (ii) Includes: (A) A nonprofit organization, including any nonprofit institution of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe at 2 CFR 175.25(b). (B) A for-profit organization. (4) "Severe forms of trafficking in persons," "commercial sex act," and "coercion" have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. 7102). 15. NEW RESTRICTIONS ON LOBBYING (43 CFR 18) The Recipient agrees to comply with 43 CFR 18, New Restrictions on Lobbying, including the following certification: (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative Agreement No. RI9AP00129 Agreement Template (0312019) 17-145 Page 39 of 50 agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying" in accordance with its instructions. (c) The Recipient shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 16. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970 (URA) (42 USC 4601 et seq.) (a) The Uniform Relocation Assistance Act (URA), 42 U.S.C. 4601 et seq., as amended, requires certain assurances for Reclamation funded land acquisition projects conducted by a Recipient that cause the displacement of persons, businesses, or farm operations. Because Reclamation funds only support acquisition of property or interests in property from willing sellers, it is not anticipated that Reclamation funds will result in any "displaced persons," as defined under the URA. (b) However, if Reclamation funds are used for the acquisition of real property that results in displacement, the URA requires Recipients to ensure that reasonable relocation payments and other remedies will be provided to any displaced person. Further, when acquiring real property, Recipients must be guided, to the greatest extent practicable, by the land acquisition policies in 42 U.S.C. 4651. (c) Exemptions to the URA and 49 CFR Part 24 (1) The URA provides for an exemption to the appraisal, review and certification rules for those land acquisitions classified as "voluntary transactions." Such "voluntary transactions" are classified as those that do not involve an exercise of eminent domain authority on behalf of a Recipient, and must meet the conditions specified at 49 CFR 24.101(b)(1)(i)-(iv). (2) For any land acquisition undertaken by a Recipient that receives Reclamation funds, but does not have authority to acquire the real property by eminent domain, to be exempt from the requirements of 49 CFR Part 24 the Recipient must: (i) provide written notification to the owner that it will not acquire the property in the event negotiations fail to result in an amicable agreement, and; (ii) inform the owner in writing of what it believes to be the market value of the property Agreement No. R19APo0129 Agreement Template (03/2019) 17-146 Page 40 of 50 (d) Review of Land Acquisition Appraisals. Reclamation reserves the right to review any land appraisal whether or not such review is required under the URA or 49 CFR 24.104. Such reviews may be conducted by the Department of the Interior's Appraisal Services Directorate or a Reclamation authorized designee. When Reclamation determines that a review of the original appraisal is necessary, Reclamation will notify the Recipient and provide an estimated completion date of the initial appraisal review. 17. SYSTEM FOR AWARD MANAGEMENT AND UNIVERSAL IDENTIFIER REQUIREMENTS (2 CFR 25, APPENDIX A) A. Requirement for System for Award Management Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must maintain the currency of your information in the SAM until you submit the final financial report required under this award or receive the final payment, whichever is later. This requires that you review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term. B. Requirement for unique entity identifier If you are authorized to make subawards under this award, you: 1. Must notify potential subrecipients that no entity (see definition in paragraph C of this award term) may receive a subaward from you unless the entity has provided its unique entity identifier to you. 2. May not make a subaward to an entity unless the entity has provided its unique entity identifier to you. C. Definitions For purposes of this award term: 1. System for Award Management (SAM) means the Federal repository into which an entity must provide information required for the conduct of business as a recipient. Additional information about registration procedures may be found at the SAM Internet site (currently at http://www.sam.gov). 2. Unique entity identifier means the identifier required for SAM registration to uniquely identify business entities. 3. Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25, subpart C: Agreement No. R19AP00129 Agreement Template (03/2019) 17-147 Page 41 of 50 a. A Governmental organization, which is a State, local government, or Indian Tribe; b. A foreign public entity; c. A domestic or foreign nonprofit organization; d. A domestic or foreign for-profit organization; and e. A Federal agency, but only as a subrecipient under an award or subaward to a non -Federal entity. 4. Subaward: a. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. b. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see 2 CFR 200.330). c. A subaward may be provided through any legal agreement, including an agreement that you consider a contract. 5. Subrecipient means an entity that: a. Receives a subaward from you under this award; and b. Is accountable to you for the use of the Federal funds provided by the subaward. 18. PROHIBITION ON TEXT MESSAGING AND USING ELECTRONIC EQUIPMENT SUPPLIED BY THE GOVERNMENT WHILE DRIVING Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, was signed by President Barack Obama on October 1, 2009 (ref: http•//edocket access gpo ova /2009/gdf/E9-24203pdD. This Executive Order introduces a Federal Government -wide prohibition on the use of text messaging while driving on official business or while using Government -supplied equipment. Additional guidance enforcing the ban will be issued at a later date. In the meantime, please adopt and enforce policies that immediately ban text messaging while driving company-owned or rented vehicles, government- owned or leased vehicles, or while driving privately owned vehicles when on official government business or when performing any work for or on behalf of the government. Agreement No. RI9AP00129 Agreement Template (03/2019) 17-148 Page 42 of 50 19. REPORTING SUBAWARDS AND EXECUTIVE COMPENSATION (2 CFR 170 APPENDIX A) 1. Reporting Subawards and Executive Compensation. a. Reporting of first-tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5) for a subaward to an entity (see definitions in paragraph e. of this award term). 2. Where and when to report. i. You must report each obligating action described in paragraph a. l . of this award term to http.•//www.fsrs.gov. ii. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.) 3. What to report. You must report the information about each obligating action that the submission instructions posted at http://www.fsrs.g specify. b. Reporting Total Compensation of Recipient Executives. 1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if— i. the total Federal funding authorized to date under this award is $25,000 or more; ii. in the preceding fiscal year, you received— (A) 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and Agreement No. R19AP00129 Agreement Template (03/2019) 17-149 Page 43 of 50 iii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at htip://www.sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report executive total compensation described in paragraph b. 1. of this award term: i. As part of your registration profile at http://www.ccr.Z. ii. By the end of the month following the month in which this award is made, and annually thereafter. c. Reporting of Total Compensation of Subrecipient Executives. 1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, for each first-tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's preceding completed fiscal year, if— i. in the subrecipient's preceding fiscal year, the subrecipient received— (A) 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and ii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at ht(p://www.sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term: Agreement No. RI9AP00129 Agreement Template (03/2019) 17-150 Page 44 of 50 i. To the recipient. ii. By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October I and 31), you must report any required compensation information of the subrecipient by November 30 of that year. d. Exemptions If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report: i. Subawards, and ii. The total compensation of the five most highly compensated executives of any subrecipient. e. Definitions. For purposes of this award term: 1. Entity means all of the following, as defined in 2 CFR part 25: i. A Governmental organization, which is a State, local government, or Indian tribe; ii. A foreign public entity; iii. A domestic or foreign nonprofit organization; iv. A domestic or foreign for-profit organization; v. A Federal agency, but only as a subrecipient under an award or subaward to a non -Federal entity. Executive means officers, managing partners, or any other employees in management positions. 3. Subaward: i. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. ii. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see Sec. .210 Agreement No. R19AP00129 Agreement Template (03/2019) 17-151 Page 45 of 50 of the attachment to OMB Circular A-133, "Audits of States, Local Governments, and Non -Profit Organizations"). iii. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 4. Subrecipient means an entity that: i. Receives a subaward from you (the recipient) under this award; and ii. Is accountable to you for the use of the Federal funds provided by the subaward. 5. Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)): i. Salary and bonus. ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments. iii. Earnings for services under non -equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. iv. Change in pension value. This is the change in present value of defined benefit and actuarial pension plans. v. Above -market earnings on deferred compensation which is not tax -qualified. vi. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000. 20. RECIPIENT EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS (SEP 2013) (a) This award and employees working on this financial assistance agreement will be subject to the whistleblower rights and remedies in the pilot program on Award Recipient employee whistleblower protections established at 41 U.S.C. 4712 by section 828 of the National Defense Authorization Act for Fiscal Year 2013 (Pub.L. 112-239). Agreement No. RI9AP00129 Agreement Template (03/2019) 17-152 Page 46 of 50 (b) The Award Recipient shall inform its employees in writing, in the predominant language of the workforce, of employee whistleblower rights and protections under 41 U.S.0 4712. (c) The Award Recipient shall insert the substance of this clause, including this paragraph (c), in all subawards or subcontracts over the simplified acquisition threshold. 48 CFR 52.203-17 (as referenced in 48 CFR 3.908-9). 21. RECIPIENT INTEGRITY AND PERFORMANCE MATTERS (APPENDIX XII to 2 CFR Part 200) A. Reporting of Matters Related to Recipient Integrity and Performance 1. General Reporting Requirement If the total value of your currently active grants, cooperative agreements, and procurement contracts from all Federal awarding agencies exceeds $10,000,000 for any period of time during the period of performance of this Federal award, then you as the recipient during that period of time must maintain the currency of information reported to the System for Award Management (SAM) that is made available in the designated integrity and performance system (currently the Federal Awardee Performance and Integrity Information System (FAPIIS)) about civil, criminal, or administrative proceedings described in paragraph 2 of this award term and condition. This is a statutory requirement under section 872 of Public Law 110-417, as amended (41 U.S.C. 2313). As required by section 3010 of Public Law 111-212, all information posted in the designated integrity and performance system on or after April 15, 2011, except past performance reviews required for Federal procurement contracts, will be publicly available. 2. Proceedings About Which You Must Report Submit the information required about each proceeding that: a. Is in connection with the award or performance of a grant, cooperative agreement, or procurement contract from the Federal Government; b. Reached its final disposition during the most recent five year period; and c. Is one of the following: (1) A criminal proceeding that resulted in a conviction, as defined in paragraph 5 of this award term and condition; (2) A civil proceeding that resulted in a finding of fault and liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more; Agreement No. R19AP00129 Agreement Template (03/2019) 17-153 Page 47 of 50 (3) An administrative proceeding, as defined in paragraph 5. of this award term and condition, that resulted in a finding of fault and liability and your payment of either a monetary fine or penalty of $5,000 or more or reimbursement, restitution, or damages in excess of $100,000; or (4) Any other criminal, civil, or administrative proceeding if: (i) It could have led to an outcome described in paragraph 2.c.(1), (2), or (3) of this award term and condition; (ii) It had a different disposition arrived at by consent or compromise with an acknowledgment of fault on your part; and (iii) The requirement in this award term and condition to disclose information about the proceeding does not conflict with applicable laws and regulations. 3. Reporting Procedures Enter in the SAM Entity Management area the information that SAM requires about each proceeding described in paragraph 2 of this award term and condition. You do not need to submit the information a second time under assistance awards that you received if you already provided the information through SAM because you were required to do so under Federal procurement contracts that you were awarded. 4. Reporting Frequency During any period of time when you are subject to the requirement in paragraph 1 of this award term and condition, you must report proceedings information through SAM for the most recent five year period, either to report new information about any proceeding(s) that you have not reported previously or affirm that there is no new information to report. Recipients that have Federal contract, grant, and cooperative agreement awards with a cumulative total value greater than $10,000,000 must disclose semiannually any information about the criminal, civil, and administrative proceedings. 5. Definitions For purposes of this award term and condition: a. Administrative proceeding means a non judicial process that is adjudicatory in nature in order to make a determination of fault or liability (e.g., Securities and Exchange Commission Administrative proceedings, Civilian Board of Contract Appeals proceedings, and Armed Services Board of Contract Appeals proceedings). This includes proceedings at the Federal and State level but only in Agreement No. R19AP00129 Agreement Template (03/2019) 17-154 Page 48 of 50 connection with perfonnance of a Federal contract or grant. It does not include audits, site visits, corrective plans, or inspection of deliverables. b. Conviction, for purposes of this award term and condition, means a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere. c. Total value of currently active grants, cooperative agreements, and procurement contracts includes— (1) Only the Federal share of the funding under any Federal award with a recipient cost share or match; and (2) The value of all expected funding increments under a Federal award and options, even if not yet exercised. 22. CONFLICTS OF INTEREST (a) Applicability. (1) This section intends to ensure that non -Federal entities and their employees take appropriate steps to avoid conflicts of interest in their responsibilities under or with respect to Federal financial assistance agreements. (2) In the procurement of supplies, equipment, construction, and services by recipients and by subrecipients, the conflict of interest provisions in 2 CFR 200.318 apply. (b) Requirements. (1) Non -Federal entities must avoid prohibited conflicts of interest, including any significant financial interests that could cause a reasonable person to question the recipient's ability to provide impartial, technically sound, and objective performance under or with respect to a Federal financial assistance agreement. (2) In addition to any other prohibitions that may apply with respect to conflicts of interest, no key official of an actual or proposed recipient or subrecipient, who is substantially involved in the proposal or project, may have been a former Federal employee who, within the last one (1) year, participated personally and substantially in the evaluation, award, or administration of an award with respect to that recipient or subrecipient or in development of the requirement leading to the funding announcement. (3) No actual or prospective recipient or subrecipient may solicit, obtain, or use non- public information regarding the evaluation, award, or administration of an award to Agreement No. R19AP00129 Agreement Template (03/2019) 17-155 Page 49 of 50 that recipient or subrecipient or the development of a Federal financial assistance opportunity that may be of competitive interest to that recipient or subrecipient. (c) Notification. (1) Non -Federal entities, including applicants for financial assistance awards, must disclose in writing any conflict of interest to the DOI awarding agency or pass- through entity in accordance with 2 CFR 200.112, Conflicts of Interest. (2) Recipients must establish internal controls that include, at a minimum, procedures to identify, disclose, and mitigate or eliminate identified conflicts of interest. The recipient is responsible for notifying the Financial Assistance Officer in writing of any conflicts of interest that may arise during the life of the award, including those that have been reported by subrecipients. (d) Restrictions on Lobbying. Non -Federal entities are strictly prohibited from using funds under this grant or cooperative agreement for lobbying activities and must provide the required certifications and disclosures pursuant to 4 3 CFR Part 18 and 31 USC 13 52. (e) Review Procedures. The Financial Assistance Officer will examine each conflict of interest disclosure on the basis of its particular facts and the nature of the proposed grant or cooperative agreement, and will determine whether a significant potential conflict exists and, if it does, develop an appropriate means for resolving it. (f) Enforcement. Failure to resolve conflicts of interest in a manner that satisfies the Government may be cause for termination of the award. Failure to make required disclosures may result in any of the remedies described in 2 CFR 200.338, Remedies for Noncompliance, including suspension or debarment (see also 2 CFR Part 180). 23. DATA AVAILABILITY (a) Applicability. The Department of the Interior is committed to basing its decisions on the best available science and providing the American people with enough information to thoughtfully and substantively evaluate the data, methodology, and analysis used by the Department to inform its decisions. (b) Use of Data. The regulations at 2 CFR 200.315 apply to data produced under a Federal award, including the provision that the Federal Government has the right to obtain, reproduce, publish, or otherwise use the data produced under a Federal award as well as authorize others to receive, reproduce, publish, or otherwise use such data for Federal purposes. (c) Availability of Data. The recipient shall make the data produced under this award and any subaward(s) available to the Government for public release, consistent with applicable law, to allow meaningful third -party evaluation and reproduction of the following: Agreement No. R19AP00129 Agreement Template (0312019) 17-156 Page 50 of 50 (i) The scientific data relied upon; (ii) The analysis relied upon; and (iii) The methodology, including models, used to gather and analyze data. Agreement No. R19AP00129 Agreement Template (03/2019) 17-157