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HomeMy WebLinkAbout2003-041 Agrmt - Osmose UtilitiesOsmose Utilities Services, Inc. GENERAL AGREEMENT This GENERAL AGREEMENT, dated as of February 14, 2003, is entered into by and between Osmose Utilities Services, Inc., a Delaware corporation with its principal place of business at 980 Ellicott Street, Buffalo, New York, 14209 ("Contractor"), and City of Ashland, a City organized under the laws of the state of Ashland ("Owner"). This contract will be governed by and construed in accordance with the laws of the state of Oregon. Contractor and Owner, for and in consideration of the promises and covenants contained in this Agreement, mutually agree as follows: Work. Contractor shall furnish all supervision, labor, tools, equipment and materials necessary or required to perform the work described in Schedule 1 (the "Work") in accordance with the specifications set forth in both Exhibit A and Exhibit B. Qualification of Contractor's personnel shall be as set forth in Exhibit A. Maps of Work Sites. Owner shall furnish Contractor with maps showing the locations of the Work sites where the Work is to be performed. Owner represents and warrants to Contractor that Owner has, and Contractor at all times during the performance of the Work shall have, the legal right to access all Work sites. Contractor Reports. Contractor shall record all categories of Work on accepted report sheets in accordance with Exhibit A or as supplied by Owner. A copy of this report shall be furnished to Owner in a timely fashion as mutually agreed. Contractor Fees. Owner agrees to pay Contractor, and Contractor agrees to accept as full compensation for the Work performed and materials used, the fees set forth in or otherwise calculated in accordance with the rates set forth in Schedule 1. Owner shall be responsible for all applicable sales taxes, unless it provides to Contractor a valid exemption certificate or other documentation satisfactory to Contractor reflecting a sales tax exemption. If the Work is subject to a gross receipts or other similar tax, said amount shall be added to the pricing. Payment Terms. Owner shall make payments to Contractor for the Work as follows: At the end of each calendar week, Contractor shall prepare and furnish to Owner an invoice with a detailed statement of the number of billable items performed during the prior week and the amount due. Payment of all invoices is due upon receipt by Owner. A service charge of one and one-half percent (1½%) per month will be added to all invoices not paid within thirty (30) days of the invoice date. This service charge shall be governed by the laws of the state of New York. Payments made by Owner during the progress of the Work shall not constitute final acceptance of the Work, but shall be subject to adjustment after a final inspection by Owner. Commencement of Work. Contractor shall commence the Work within thirty (30) days after receiving written notice from Owner. Rev. 1101 Page I of $ Osmose Utilities Services, Inc. GENERAL AGREEMENT o 10. 11. Termination. Either party may terminate this Agreement upon thirty (30) days written notice served upon the other party by registered mail. Upon expiration of such thirty (30) day period, all Work under this Agreement shall cease. The notice shall be addressed to Owner at the address listed at the end of this Agreement, and to Contractor at 980 Ellicott St., Buffalo, New York 14209. Upon termination, Contractor shall issue a final invoice and Owner shall pay Contractor for all Work performed through the end of the thirty (30) day notice period. Independent Contractor. Contractor shall at all times be an independent contractor for all purposes under this Agreement, including without limitation in connection with the performance of labor and services under this Agreement. Contractor shall only utilize equipment owned or leased by Contractor, all of which equipment shall be and remain in the exclusive charge and control of Contractor, and not subject to control or supervision by Owner. Owner shall not by this Agreement be deemed to have hired or rented such equipment or assume any liability or responsibility for the use or method of use of such equipment. Compliance with Laws. Contractor shall promptly pay all wages due to its employees, shall obtain all licenses and permits required by law and shall otherwise comply with all ordinances, laws, orders, rules, directives and regulations made by any governmental authority or regulatory body pertaining to the Work. Contractor's Insurance. Throughout the term of this Agreement, Contractor shall maintain in full force and effect, in amounts reasonably satisfactory to Owner and otherwise in compliance with applicable law, the following insurance coverages: workers' compensation, commercial general liability (including public liability, personal injury, property damage and contractual liability) and automobile liability, naming Owner as an additional insured. Prior to the commencement of the Work, Contractor shall furnish Owner with a certificate evidencing said coverages. Notwithstanding any language to the contrary, any insurance coverage provided by Contractor shall not cover Owner for any negligent acts or omissions of Owner, its employees or agents. Indemnification. Contractor shall indenmify, defend and hold harmless Owner, its officers, employees, representatives and agents, from and against all liability, loss, damage or expense resulting from any claim, suit or action for personal injury (including death) or damage to property caused by or arising out of any negligent act or negligent failure to act by Contractor, its employees, agents or subcontractors, in connection with the performance of the Work. In the event of the joint and concurrent negligence of Contractor and Owner, each party shall be responsible for the percentage of negligence attributed to it by agreement between the parties or in a court of competent jurisdiction. Notwithstanding any other language to the contrary, in no event shall Contractor be responsible for or be required to defend, indemnify or hold harmless Owner from and against any claim for personal injury (including death) or damage to property or loss of use thereof as a result of the failure, falling or breakage of one or more of Owner's wood utility poles which occurs Rev. 1101 Page 2 of 5 Osmose Utilities Services, Inc. GENERAL AGREEMENT 12. 13. 14. more than one (1) year after completion of the Work. Notice of Claim. In the event Owner has notice of (i) any personal injury or death or (ii) property damage in excess of $5,000 as the result of the failure, falling or breakage of one or more of Owner's wood utility pole(s) inspected or otherwise worked on by Contractor, Owner agrees to (a) give written notice to Contractor within thirty (30) days after Owner first discovers or receives notice of such an occurrence and (b) take possession of and store subject utility pole(s) in a location protected from the weather and provide Contractor reasonable opportunity to inspect said pole(s). Notwithstanding any language to the contrary in this Agreement, in the event Owner fails to comply with the foregoing provisions of this paragraph 12, Owner agrees to defend, indemnify and hold harmless Contractor from and against any and all claims for damages as a result of said personal injury, death or property damage. Owner's defense obligations shall include all costs of defense, including reasonable attomeys' fees. Warranty. Contractor shall perform all Work in a safe, efficient, good and workmanlike manner. Contractor warrants for a period of one (1) year from the date of completion that the Work shall conform to the Agreement specifications (Exhibits A & B) and shall have been performed with the ordinary skill and care of wood pole inspection professionals. As a condition to this warranty, Owner must give Contractor written notice within thirty (30) days after Owner first discovers or receives notice of any alleged non-conforming Work. If any Work is found not to conform to the specifications, taking into account Exhibit B, Contractor shall, at its option, either refund that portion of Contractor's fees pertaining to such non-conforming Work or repair or replace the defective Work at no cost to Owner. CONTRACTOR MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. ALL ACTIONS AGAINST CONTRACTOR BY OWNER IN WARRANTY, TORT, CONTRACT OR OTHERWISE MUST BE COMMENCED WITHIN ONE (1) YEAR OF THE DATE OF ACCRUAL OF SUCH ACTION. IN NO EVENT SHALL CONTRACTOR BE RESPONSIBLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, UNLESS CAUSED BY THE WILLFUL MISCONDUCT OF CONTRACTOR. CONTRACTOR MAKES NO WARRANTY AS TO THE LONGEVITY OR USEFUL LIFE OF WOOD POLES INSPECTED AND/OR TREATED BY CONTRACTOR. This contract is subject to the city's living wage law and the living wage requirements are required to be incorporated into the contract. The following paragraph stating the following will be a part of the agreement. "Contractor (Osmose Utilities Services, Inc.) is required to comply with chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in this chapter, to all employees performing work under this contract and to any subcontractor who performs 50% or more of the service work under this contract. Rev. 1101 Page 3 of 5 Osmose Utilities Services, Inc. GENERAL AGREEMENT 15. 16. 17. 18. Contractor is also required to post the attached notice predominantly in areas where it will be seen by all employees." Mutual Non-Solicitation. Contractor will not solicit, hire, contract with or engage the employment or services of any employee or former employee of Owner with whom Contractor personnel have had contact in the course of performance of the Agreement for a period of one (1) year after the termination of this Agreement or one (1) year after any such employee ceased to be employed by Owner, whichever occurs earliest. Owner will not solicit, hire, contract with or engage in the employment or services of any employee or former employee of Contractor for a period of one (1) year after the termination of this Agreement or one (1) year after such employee ceased to be employed by Contractor, whichever occurs earliest. Notices. All notices and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given: (i) when delivered by hand or confirmed facsimile transmission; (ii) one day after delivery by receipted overnight delivery; or (iii) four days after being mailed by certified or registered mail, return receipt requested, with postage prepaid to the appropriate address set forth in this Agreement or to such other person or address as either party shall furnish to the other party in writing in accordance with this paragraph. Force Majeure. Except as specifically provided in this Agreement, neither party shall be liable for any delays or other nonperformance resulting from circumstances or causes beyond its reasonable control and anticipation, including fire or other casualty, act of God, strike or labor dispute, war or other violence, acts of third parties not within such party's reasonable control and anticipation, or any law, order or requirement of any governmental agency or authority; provided however, that the party whose nonperformance is excused under this paragraph shall take commercially reasonable steps to circumvent such events of force majeure and shall resume performance immediately upon the cessation of the condition of force majeure which prevented such performance. Negotiated Language. Each party acknowledges that it has participated in the negotiation and preparation of this Agreement and has had the opportunity to have its counsel review this Agreement. Therefore, neither party shall be deemed to have &ailed this Agreement and the customary rule of construction resolving ambiguities in the language against the drafting party shall not apply. 19. Severabili _ty. If any term or provision of this Agreement is held illegal or unenforceable by a court of competent jurisdiction, all other terms of this Agreement shall remain in full force and effect, and the illegal or unenforceable provision shall be deemed struck. In the event that the stricken provision materially affects the rights, obligations or duties of either party, Owner and Contractor shall substitute a provision by mutual agreement that preserves the original intent of the parties as closely as possible under applicable law. Rev. 1101 Page 4 of 5 Osmose Utilities Services, Inc. GENERAL AGREEMENT preserves the original intent of the parties as closely as possible under applicable law. 20, Miscellaneous. This Agreement constitutes the entire agreement between the parties relative to the subject matter contained in this Agreement. None of the terms of this Agreement shall be changed, waived, superseded or supplemented, except in a written document signed by the parties hereto. IN WITNESS WHEREOF, the Contractor and Owner have caused this Agreement to be executed by their duly authorized representatives as of the date set forth at the beginning of this Agreement. Osmose Utilities Services, Inc. Byd~ '" ?n.h,Pr1' Name: James H. McGiffert Title: Vice President, Pacific Region Attest: ~~# ~~ Name: William H. Hoover Title: Administrative Coordinator, Pacific Region Date: February 14,2003 City of Ashland By: 4</ ~ Date: Name: DAtt-t...oz,J" " '-w.lE/$~ Title: /.N-+t1/~ D"t..&.~~ 34~.3 Comonl ..- ~ ~ 00" tit Legal review by rv- lIlfl 1" 1., v ? Attest: Name: Title: Owner's Address: Rev. 1/01 Page 6 of 6 Osmose Utilities Services, Inc. EXHIBIT "A" Specifications For Inspection And Groundline Treatment 1. Above Ground Inventory and Facilities Inspection Visual inspection is to be made from the ground of upper portion of pole and facilities using the aid of binoculars. This will include pole and Crossarm defects that can be detected visually, leaking/bulging transformers and capacitors, loose hardware, slack guys, obvious clearance problems that can be detected visually or with a "hot stick", chipping insulators, shield wires, structure grounding, structural alignment, as well as physical plant inventory on a handheld data collection device. All inspections shall be in accord with the National Electric Safety Code (NESC). Pole defects observed sufficient to warrant rejection shall be reported and no further work undertaken. 2. Excavation And Inspection Pole shall be excavated to a minimum depth of 18" below ground level. The diameter of the hole should be sufficient to provide approximately 4" clearance at the bottom of the excavation. A wire brush or check scraper is to be used to clean below ground portion of pole to locate exterior decay. The Partial Excavation option shall consist of an 18" deCep excavation located on one quadrant of the pole only. 3. Sounding Poles shall be sounded with a hammer from below groundline to as high as an Inspector can reach in order to locate exterior decay or interior pockets of decay. 4. Boring Inspector shall bore pole at least once to detect interior decay. If it is present, pole shall be bored a sufficient number of times to determine location and extent of decay. Bored holes shall be filled with treated wood plugs or other suitable plugs. 5. Chipping Exhibit "A" All overhanging and loose weather wood is to be removed at least 6" above groundline. Further, it is essential that all exterior decay be removed from the treating zone. No good or visually sound wood is to be removed from the stem of the pole unless essential to inspection and/or treatment. All loose shavings and decayed pieces are to be removed from the hole and surrounding area. 6. Evaluation Measure minimum circumference at or below groundline wherever the least sound wood is present. Make adjustments in circumference to account for external decay pockets and internal decay in accordance with Osmose Pole Circumference Calculator. Check effective circumference against loading tables supplied or approved by Owner (pole circumference calculator unless otherwise specified). Poles below minimum circumference shall be rejected, and so marked in the field and reported. Poles with a minimum shell equal to or greater than 2 inches, with the following exceptions: Poles 45 feet or greater in length shall have a minimum shell equal to or greater than 3 inches, shall be treated; poles with a shell thickness less than the above specified minimum shall be rejected. Poles with a minimum shell of 1 1/2 inch(es) or 30% of original circumference or less shall be designated a "Danger Pole" or other appropriate name. 7. Evaluation For Reinforcement Rejected poles shall be visually checked to determine if they can be reinforced. Poles with serious top defects or without sufficient wood at specific above ground locations(see below) will be designated "Non-Reinforceable" and no further work performed on the pole. If minor above ground defects are observed, they should be noted on the inspection report for Owner's attention. If after the above ground review all is in order, then all rejects will be sounded above groundline and bored to determine extent of decay above groundline. Inspector shall bore the pole at 15" and 26" above groundline. Sufficient borings shall be made so all interior decay above ground is located to determine if the pole is a candidate for reinforcing with a steel truss. Poles shall be selected by Owner for reinforcement from Contractor's pole reports if there is sufficient shell thickness at specific locations on the pole. The type of restoration method will be the determinant as far as location and minimum shell thickness. 2 Exhibit "A" In the case of Osmo-C-Truss technology, to transfer the strength of the steel to the pole, the most critical location is at 15" or 26" above groundline. If there is less than 2" average shell thickness at these locations and/or less than 4" average shell at 4 1/2 feet above groundline, the pole shall be designated "Non-Reinforceable." FiberWrap restoration can potentially extend vertically to within the conductor safe clearance zone so the Owner shall determine candidates with help of Contractor. However, minimum average shell thickness at the top of the repair shall be 4" on distribution size poles and 5" on transmission poles. In all cases, rejected pole tops shall be visually checked to determine if they are sound enough and within Owner's guidelines so that the pole can be reinforced. 8. Internal Treatment For Decay and/or Insects B. Copper NaphthenateTM A liquid preservative solution containing copper naphthenate (2% copper as metal) to be applied to poles with decay voids. Application similar to item A above. 9. Fumigant Either one of the three fumigants that follow are inserted in liquid or solid form, the preservative then converting into vapors. Application is to be made into known or suspected internal decay areas but not directly into a void where the vapor might escape into the surrounding air through checks. Fumigants will be applied in 7/8" holes drilled 12" - 15" deep at a steep angle so as not to penetrate the opposite side of the pole. Tight fitting treated wood plugs are to be used to seal all holes. A. MITC-FumeTM Active ingredient: 97% Methylisothiocyanate. Application to follow label instructions. No restrictions on application locations. B. WoodFumeR Active ingredient: 32.7% sodium methyl dithiocarbamate. Application to follow label instruction. No restrictions on application locations. Exhibit "A" C. FLURODSTM Active Ingredient 92.6% Sodium Fluoride. Application to follow label instruction. No restrictions on application locations. 10. 11. External (Preservative) Treatment Preservative shall be the following: Cop-R-PlasticR Ingredients: Sodium Fluoride Copper Naphthenate (8.00%) Petroleum Distilliates Inerts Wrapping 44.4O% 20.00% 17.44% 18.16% OsmoShieldTM moisture barrier is to be applied over preservative, covering that portion of the poles from 18" below ground to 4" above ground. In locations where livestock has access to a Treated Pole, a suitable cattle wrap shall be applied. 12. Backfilling Excavated holes shall be generously refilled and tamped, when possible, so as to avoid possibility of subsequent settling leading to a depressed area. 13. Clean-up No debris, loose dirt, etc. are to be left in pole area. Private property turf, bushes, etc., are to be replaced with care. If any preservative is spilled on the ground, it shall be immediately cleaned up. All containers shall be disposed of according to approved environmental practices. 14. Identification of Work Completed All inspected poles shall be marked with an aluminum tag (s) identifying work performed, contractor and date in a fashion similar to the designations shown under 14.1. Tags shall be supplied by the contractor and placed seven (7) feet above groundline on the road side of the pole. Tagging identification shall correspond to reporting and billing categories. Exhibit" A" 14.1 Inspection and Treatment Tagging Scheme ?''\..Jl,'ll : r ,'! ' , ~ .~.'. _ I -:Xi>" ~! ~~ q "' -\-,:'?"", ~ '~,- ,.....--...... 1;,...,., ," ''? '=j '" \.c\ ,~,-:-,. ...~,,~.,p1'4 ....lU /<";(,,.;::ryi~;i="'"'''''' ~}~" V'> """ ,i," "" " -:"~~~':' ;::. ',~ /~: ~', /' " '" -, Pole Inspected, Found To Be Above Strength Guidelines and Treated Pole has been excavated to specified depth, 360 degrees, sounded, bored and externally treated and fumigant treated (MITC-Fume@ in this particular case - WoodFume@ or TimberFume@wouldalso apply depending on specifications) in the year indicated. The strength of the pole has been found to meet or exceed requirements although, however, internal decay was detected in this particular case. The internal decay voids and/or insect nests have been flooded with Hollow Heart@ or Cop- R-NapTM. Pole Inspected, Found To Be Above Strength Guidelines and Treated Pole has been sounded and bored in the year indicated. The strength of the pole has been evaluated to meet or exceed requirements. In this particular case, the pole has been internally fumigant treated with MITC- Fume@ (depending on specifications, TimberFume@ or WoodFume@ can be substituted). .... 5 14.1 Tagging scheme - cont'd. YeHow F' ~ / ...... '~.r. fA "\V' '.' - ......, ~ :/"'\"::'\.' " '.J White Exhibit" A" Poles That Are Reinforcing Candidates (Reject - Reinforce) Yellow or white rectangular tag signifies a pole that has been sounded, bored (and excavated, if necessary) and rejected. This particular pole has a yellow rectangular tag and is a candidate for pole restoration using either the Osmo C- Truss™ or FiberWrap methods based on Section 7 Evaluation For Reinforcement. Unless requested otherwise by Owner, these poles have all received Hollow Heart@ or Cop-R-NapTM internal treatment and a fumigant treatment with WoodFume@. The pole has been also externally treated with OsmoPlastic@, if required. Poles Recommended To Be Replaced (Reject-Replace) This particular pole should be replaced due to insufficient groundline strength or pole top defects. One white rectangular tag signifies a reject - replace; two white vertically placed rectangular tags signify "Priority Pole" (or other Owner requested term). Since the pole is scheduled for replacement, no treatments are normally applied. 6 Osmose Utilities Services, Inc. EXHIBIT B Additional Information Regarding Contractor's Pole Inspection and Groundline Treatment Programs Relative to Best Practices Pole Owners should be aware that the present art of inspecting poles and equipment and the site where these items are typically located is not perfect, and there is no test equipment or methods to make it so. When evaluating wood poles, there are variables affecting wood quality for which the Contractor has no control. These would include the species of timber involved, the effectiveness or lack of original treatment, soil and climate conditions, brash or brittle wood, including brash wood caused by soft rot which lacks required strength, but is not always able to be detected by any known field methods, as well as insect activity, bird damage or lightening damage occurring or resuming after the time of inspection. For these and similar reasons, perfection is not always possible, even with highly trained professional inspectors and electronic instrumentation. When attempting to identify defective equipment in field conditions, there are also additional variables over which a Contractor has little or no influence. Trees and other vegetation on utility right-of-ways continue to grow after the inspection date. New attachments and lines are added to poles, and old equipment is removed by power, telephone and cable television personnel and line construction contractors. Utility subscribers and others can build, alter or demolish various structures, and roads and driveways are added or rerouted, which violates clearance requirements and cable burial depths without Pole Owners or inspectors being notified. The longer time passes after an inspection is performed, the less reliable the data on attachments, defective equipment and clearances becomes. Pole Owners acknowledge that the Contractor cannot in any way assume responsibility for damage or injuries caused by factors or variables outside of the Contractor's control. More specific information follows which should be known by utility management and those who work on or near transmission, distribution and other outside plant facilities. 1. Pole Inspection Methods The primary groundline inspection methods follow, along with observations based on the experience of Osmose in regard to their reliability. Some or all apply to any individual contract with the Owner's instructions prevailing. The Owner has determined the frequency and type of inspection and application of supplemental treatments and provides specifications on how to classify deteriorated poles. As a general rule, the more excavation that is done prior to inspection, the more accurate the groundline inspection process can be. Rev. 11100 Page I of 5 Osmose Utilities Services, Inc. EXHIBIT B Additional Information Regarding Contractor's Pole Inspection and Groundline Treatment Programs Relative to Best Practices When evaluating a damaged pole, the inspector approximates the size, extent and nature of the damage and, with the aid of the Owner, reject criteria and measuring devices, converts the loss of the pole's cross sectional area to an equivalent reduced circumference sound wood. This is not an exact science, and conclusions about actual pole strength should not be based on effective circumference estimates alone. The Owner needs to independently verify pole strength. ao Visual Inspection from Ground Level -- This method is intended to locate only readily visible gross defects, which can be seen with the naked eye from ground level. Additionally, vegetation may obscure parts of the pole. Consequently, this inspection method provides minimum indication of wood strength. If used alone, this inspection provides little information to help the Owner improve its pole plant. It will miss most priority and reject poles. If this is the only inspection method, it should be repeated several times a year. bo Sonic Inspection -- This method utilizes electronic sonic equipment, which primarily measures speed of sound waves from one point on the outside of a pole to another point on the opposite side of a pole in one narrow plane. Based on information gathered during follow-up inspections of many thousands of poles in different geographic areas by the more thorough excavation method described in "e" below, it is the experience of Osmose that the sonic method is not as accurate as the Sound and Bore method described next. Used in conjunction with visual inspection, historical data shows approximately 40-50% of the reject and priority poles will be found. This inspection method should be repeated at least yearly. Co Sound and Bore -- Without excavation, this method involves utilizing a sounding hammer around the pole from ground level to about eight feet above, followed by one or more borings at the groundline or other area noted to be suspicious by sounding. It is specified by Pole Owners for poles set in pavement where excavation is impractical. It can miss poles without sufficient strength to meet NESC or other mandated overload capacity requirements, and there is the possibility of missing those poles with insufficient strength to support the current wire loading. This is particularly true when the decayed area is below ground level or if the inspector's tools do not contact hidden, damaged areas. Used in conjunction with visual inspection, historical data shows approximately 50 to 60 percent (50-60%) Rev. 11/00 Page 2 of 5 Osmose Utilities Services, Inc. EXHIBIT B Additional Information Regarding Contractor's Pole Inspection and Groundline Treatment Programs Relative to Best Practices of reject and priority poles will be found. This inspection procedure should be performed at least yearly. do Partial Excavation Plus Sound and Bore -- The primary options specified by Owners in this category are: 1) Pushing the soil away from the pole to a depth of four to six inches at two or three locations prior to observing, sounding and making one or more borings. 2) Removing soil to a depth of six inches at one or more points or around the entire perimeter prior to observing, sounding and making one or more borings. 3) Excavating to a depth of 18 inches on one side of a pole prior to observing sounding and making one or more borings. The above partial excavation procedures can be expected to identify many but not all inspected poles with decay below ground or other condition causing a reduction in the required strength at the groundline. Used in conjunction with visual inspection, historical data shows that approximately 80 to 90 percent (80-90%) of reject and priority poles will be found. This inspection procedure should be repeated every three to five years, depending upon the decay hazard zone where the poles are located. Excavating around poles may lead to an important shortcoming, unless supplemental treatments are specified by the Owner. The addition of air and moisture to the new backfill may set up conditions more favorable to decay than if no excavation had occurred. Therefore, a supplemental pole treatment is recommended; otherwise, re-inspection cycles must be shortened. If critical decay is found or suspected during any of the above three procedures, excavation to at least 18 inches all the way around the pole is highly recommended. The pole can then be judged more accurately and be classified as sound and treated or recommended for replacement or strength restoration. Rev. 11/00 Page 3 of 5 Osmose Utilities Services, Inc. EXHIBIT B Additional Information Regarding Contractor's Pole Inspection and Groundline Treatment Programs Relative to Best Practices eo 18" to 24" Excavation Plus Sound and Bore Plus Supplemental Treatment - This inspection procedure constitutes the most thorough method known without using electronic instruments, but is nevertheless not perfect because of the variables previously discussed and because obstructions such as rock, adjacent buildings, sidewalks, keys, roots, risers, deep decay, underground cables and other obstacles sometimes prevent "full" excavation and/or treatment with respect to depth, circumference or both. Typically, once the excavation is made to improve inspection accuracy, the procedure also includes treatments. Remedial preservatives help prolong life and avoid the problems resulting from soil disturbance described above, otherwise re- inspection cycles must be shortened. Used in conjunction with visual inspection, historical data shows approximately 98 percent (98%) of reject and priority poles will be found. This inspection procedure should be repeated every six to 10 years depending on the decay hazard zone where the poles are located. 2. Using Electronic Devices All inspection methods may be augmented by the use of electronic devices if specified by the Owner. The Shigometer® is one such device. It measures the pole's relative conductivity, which provides information on the presence of decay activity before the wood shows signs of physical breakdown. Another instrument attempts to predict the strength of individual poles based on the characteristics of sound waves. It does not identify the cause of reduced pole strength such as the presence of decay. However, it may provide an indication of low strength resulting from the inherent variability of new pole strength. All of these devices have limitations and will not detect all reject and priority poles. 3. Pole Treatment The nature and extent of supplemental treatment work has been specified by the Pole Owner. A certain number of poles treated will only just meet Pole Owner's specifications for treatment rather than rejection. Most of these, after treatment, will provide some satisfactory continuing service, but Owner should be aware that a small percentage of poles will fall below strength requirements prior to the next inspection cycle. These poles are in addition to the reject and priority poles not found during the inspection. Rev. 11100 Page 4 of 5 Osmose Utilities Services, Inc. EXHIBIT B Additional Information Regarding Contractor's Pole Inspection and Groundline Treatment Programs Relative to Best Practices 4. Linemen Safety Considerations Linemen must inspect all poles to their satisfaction prior to climbing, whether or not such poles have been inspected by a third party contractor. An inspection and/or treatment tag on a pole is not a guarantee the pole is safe to climb. Pole Owners should inform linemen that the inspection tag only means the pole was inspected in the stated year in accordance with the contract specifications. It is neither an expressed nor implied warranty that the pole meets NESC or any other standard. Linemen must also practice all other safety procedures when climbing poles and changing out or adding equipment or lines or cutting lines, all of which may create an unbalanced load. An unbalanced load may cause sound poles to fail. Shigometer is a registered trademark of $-T-N Holdings, Las Vegas, Nevada Rev. 11/00 Page 5 of 5 ACORDTM CERTIFICATE OF LIABILITY INSURANCE I DATE IMMIDDIYY) 12/30/2002 PRODUCER (716) 505-2600 FAX (716)505-0375 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION First Niagara Risk Management, Inc ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 170 Northpointe Parkway ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. P. O. Box 1010 Amherst, NY 14226-7010 INSURERS AFFORDING COVERAGE INSURED Osmose Utllltles Servlces Inc. INSURER A: ACE American Insurance Co 22667 980 Ellicott Street INSURER B: Buffalo, NY 14209-2398 INSURER C: INSURER D: I INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. '~f: TYPE OF INSURANCE POLICY NUMBER PRH~~,j~~55Jl~f Pg~!f:,~~~~,'W9.N LIMITS ~NERAL LIABILITY ftDOG20581775 01/01/2003 01/01/2004 EACH OCCURRENCE S 2,000,000 X COMMERCIAL GENERAL LIABILITY FIRE DAMAGE (Anyone fire) S 50,000 I CLAIMS MADE ~ OCCUR MED EXP (Anyone person) S 5,000 A PERSONAL & ADV INJURY $ 2,000,000 GENERAL AGGREGATE $ 2,000,000 - 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS. COMPIOP AGG S I POLICY n r;~& n LOC AUTOMOBILE LIABILITY ISAH07933952 01/01/2003 01/01/2004 COMBINED SINGLE LIMIT X ANY AUTO (Ea accident) S 2,000,000 - ALL OWNED AUTOS BODILY INJURY - (Per person) S SCHEDULED AUTOS A X HIRED AUTOS BODILY INJURY X (per accident) S NON-OWNED AUTOS - PROPERTY DAMAGE S (Per accident) GARAGE LIABILITY AUTO ONLY. EA ACCIDENT S R ANY AUTO OTHER THAN EA ACC S AUTO ONLY: AGG S EXCESS LIABILITY KOOG21740159 01/01/2003 01/01/2004 EACH OCCURRENCE S 5,000,000 ~ 'OCCUR 0 CLAIMS MADE AGGREGATE S 5,000,000 A S ==1 DEDUCTIBLE S RETENTION S S WlRC43502112 01/01/2003 01/01/2004 X TORY LIMITS I lu~r' WORKERS COMPENSATION AND ER EMPLOYERS' LIABILITY E,L EACH ACCIDENT S 1,000,000 A E.L, DISEASE. EA EMPLOYE S 1,000,000 E,L DISEASE. POLICY LIMIT S 1,000 000 OTHER :'~(rUrsnm~ DESCRIPTION OF OPERATIONSlLOCA TIONSNEHICLESlEXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS U~I:VL.::3U'-''-' Pacific Region - confirmatlon of coverage < ill MAR 0 7 ~3 --' By ~) CERTIFICATE HOLDER I I ADDITIONAL INSURED; INSURER LETTER: CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE City of Ashland EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAlL 90 N. Mountain Avenue -..1L DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Ashland, OR 97520 BUT FAILURE TO MAlL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. AUTHORlZEDREPRESENTATIVE ~ Michael C. Tvlwalk Jr./JEll ACORD 25-5 (7/97) ~ACORD CORPORATION 1988 February 14, 2003 Mr. Scott Johnson Operations Superintendent City of Ashland 90 North Mountain Avenue Ashland, Oregon 97520 RE: Revised Agreement for Groundline Inspection and Treatment of Wood Distribution Poles Dear Mr. Johnson, Osmose Utilities Services, Inc. is pleased to make the revisions needed to our Agreement on the work referenced above for the City of Ashland. We look forward to working with you again. Please do not hesitate to contact our Area Manager, Brian Smith (360-666-1483), our District Manager, Gary Herge (503-618-7339) or myself at the P)1oenix office should you have any questions or concerns. Included with this is our (revised) Agreement, and Exhibits A & B. All we would need to schedule a crew for this important aspect of the Owner's Preventative Maintenance Program would be the return of a fully executed copy of the Agreement to our Phoenix address. Very Truly Yours, d"" , q, 4..<h~ James H. McGiffert Vice President, Pacific Region Utilities Division JHM/whh Enclosures ~ ,.-\-,;......2- _ ~o<l...~""'- ~'-.> v-"""- ---- .' J-..- +'0 ~, \---.,_J.-.., -r-<"'C>-' "'--""\'-("..~ U '\ . - --==~""' ~, ,-C.>, '^ <. . C-/ <:..-/ (j cc: Buffalo B. Smith G. Herge , -, i I L c::- Osmose Utilities Services, Ine. 16421 N. Tatum Blvd., Suite 207 · Phoenix, 602-569-5632 · Fax 602-569-563~ c...7 CITY OF ASHLAND 20 E MAIN ST. ASHLAND, OR 97520 (541) 488-5300 CITY RECORDER'S COPY ;DATE: :. O3/o3i2oo3 Page 1 / 1 VENDOR: 006890 OSMOSE UTILITIES SERVICES INC 16421 N TATUM BLVD STE 207 PHOENIX, AZ 85032 SHIP TO: Ashland Electric Department (541) 488-5354 9O N MOUNTAIN ASHLAND, OR 97520 FOB Point: Terms: Net Req. Del. Date: 02/14/2003 Special Inst: Req. No.: Dept.: ELECTRIC Contact: D Wanderscheid/S Johnson Confirming? NO BLANKET PURCHASE ORDER Groundline Inspection and Treatment of Wood Distribution Poles, Pole Testing to be completed in two (2) sta.qes. Estimated completion date: December 21, 2003. Quotes Date of A.qreement: 02/14/2003 Estimated Completion: 12/31/2003 Insurance Certificates Required 15,000.001 SUBTOTAL 15,000.00 BILL TO: Account Payable TAX 0.00 20 EAST MAIN ST FREIGHT 0.00 541-552-2010 TOTAL 15,000.00 ASHLAND OR 97520 Account Number Amount Account Number E 690.11.18.00.602400 15,000.00 Signature VENDOR COPY CITY OF ASHLAND REQUISITION FORM Date of Request: I 02-27-03 THIS REQUEST IS A: o Change Order(existing PO # Required Date of Delivery/Service: Vendor Name: Address: City, State, Zip: Phone: Fax Number Deliver Location OSMOSF lITILlTIES SERVICES INC Services Only Description Total Cost Solicitation Process: o Exempt o 3 Written Quotes POLE TESTING AND TREAT 2 STAGES Approximately (copies attached) $15,000.00 o Sole Source o Invitation to Bid COMPLETION, December 31, 2003 (copies on file) o Less than o Request for $5000 Proposal (copies on file) Account Number~{fQ -/-l-l 6-0;>- ~~~E€> "Please attach the Original signed contract and Insurance certificate, Materials Only Item # Quantity Unit Description Unit Cost Total Cost TOTALCOSTOF THE MATERIALS Account Number "Please attach the quotes. Employee Signature: Supervisor/Dept. Head Signature: --?j NOTE: By signing this requisition form, I certify that the above request meets the City of Ashland Solicitation Process require ents and can be provided when necessary. ~.I::...",....^...'D.^_,.,...^\^D\C^........'Q D_..:..Of.i...... M- "",...1... .~...,. ..I...^ II..A....."".... .......n7Hc./nf)