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03/02/2004 Audit . AUDIT REPORT OF MONROE COUNTY TECHNICAL SERVICES DEPARTMENT PURCHASING PRACTICES March 2, 2004 -COUNT y "4. u ; ', 411 P . 1 * •'. . * - Q - .:q. • F COUNTY • • Prepared by: Internal Audit Department Clerk of the Circuit Court Danny L. Kolhage, Clerk Monroe County, Florida • • r� j- GOUNT), �!J:., O`ii'ti I$, op, t• • / .rx ♦• : Id '�E000M1 t..... CLERK OF THE CIRCUIT COURT MONROE COUNTY BRANCH OFFICE BRANCH OFFICE PLANTATION KEY MARATHON SUB COURTHOUSE MONROE COUNTY COURTHOUSE GOVERNMENT CENTER 3117 OVERSEAS HIGHWAY 500 WHITEHEAD STREET,SUITE 101 88820 OVERSEAS HIGHWAY MARATHON,FLORIDA 33050 KEY WEST,FLORIDA 33040 PLANTATION KEY,FLORIDA 33070 TEL.(305)289-6027 TEL.(305)292-3550 TEL.(305)852-7145 FAX(305)289-1745 FAX(305)295-3663 FAX(305)852-7146 I- March 2, 2004 The Honorable Danny L. Kolhage Clerk of the Circuit Court ' I - RE: Audit Report of Monroe County Technical Services Department Purchasing Practices Dear Mr. Kolhage: The Clerk's Internal Audit Department has completed the audit of the Technical Services Department Purchasing Practices. The purpose of the audit was to assess compliance with state and local laws and contracts, whether policies and procedures are followed and properly document the system and whether internal controls have been established and are being followed. We would like to thank the Technical Services Department for their cooperation while conducting the audit. The County Administrator requested the Clerk's Office to perform the audit after issues were reported to County Management by Technical Services staff that purchasing policies and procedures were being circumvented. The staff's knowledge of internal control and correct purchasing procedure within the Department brought the problem to the attention of management. Due to the complexity of the constantly changing technology industry and the substantial expenditures involved, internal controls need to be continuously monitored and improved. The audit was conducted by Patricia Sutton, Internal Auditor. The accompanying audit report is provided for your information. Additional copies of the report will be provided upon your request. Sincerely, & 2.?)('W • Sandra L. Mathena, CPA, CFE, CIA Director of Internal Audit I Cc: Board of County Commissioners (5) James Roberts, County Administrator Richard R. Collins, County Attorney Sheila Barker, Division Director of Administrative Services Sandee Carlile, Clerk's Finance Director • AUDIT REPORT OF MONROE COUNTY - TECHNICAL SERVICES DEPARTMENT PURCHASING PRACTICES TABLE OF CONTENTS Page I. SCOPE AND OBJECTIVES 1 II. METHODOLOGY 1-2 III. BACKGROUND 3 IV. CONCLUSIONS 4-6 V. AUDIT FINDINGS: A. Citrix Licenses 1. Employee doing business with their own government agency 7-8 2. Unaccounted for Citrix licenses purchases 9-10 3. County departments approving purchase of Citrix licenses not used in department 11-12 B. BellSouth Business Services Master Agreement 1. Contract for$49,040 for Internet Services executed by the former Director of Technical Services in violation of the Monroe County Board of County Commissioners Purchasing Policies 13-14 2. Contract for$15,076 for unnecessary Internet Services in Marathon executed by the former Director of Technical Services 15 3. The former Director of Technical Services designated himself as Agent for Monroe County BOCC to add services to BellSouth contracts 16 C. Cabling Projects 1. Dedicated BellSouth Technician not used in cabling projects resulting unnecessary labor expenses paid of$5,382 17 2. Second quote originally not provided for cable project and then inflated per instructions from the former Director of Technical Services 18-19 D. Audio Visual Innovations Contract 1. Adjustments to Audio Visual Innovations contract 20-21 2. Change orders for Audio Visual Innovations contract 22-23 E. Inventory Account for Technical ServicesDepartment 24-25 i r�- F. Solarcom, LLC Instructed to Change Invoice Description 26-28 G. Catered Christmas Party 29 H. Credit Memos From Vendors 1. Refund check returned to SBC for credit 30 2. Credits due from MoreDirect, Inc. 31 I. Howard Computers 1. Desktop computers purchased through Howard Computers 32-33 2. Citrix licenses purchased through Howard Computers 34 J. Unauthorized Disposal of Equipment 35 K. Performance of Outside Work on Monroe County Time 36 VI. EXHIBITS A. Analysis of Citrix Licenses Transactions and Checks Issued to Former Director of Technical Services B. Comark Invoices and Payment Information for Monroe County C. Comark Invoices and Payment Information for Hawk's Cay Resort D. Software Requirements E. Citrix Xpe Purchases F. IWVD Invoice for Growth Management for Citrix License Purchase G. BellSouth Business Services Master Agreement and 9/23/02 and 11/19/02 Order Summaries H. Order Form for Marathon Internet Services I. Letter of Agency/Authorization J. Memo From Former Director of Technical Service on Change in Computer Cabling Procedure K. Letters From BellSouth Dedicated Technician L. Purchase Order 238545, Request to Purchase and Quote M. BOCC Agenda Item D40, February 19, 2003 N. March 7, 2003 Memorandum O. Revised March 9, 2003 Proposal P. E-mail to Audio Visual Innovations and March 9, 2003 Adjusted Proposal Summary by Former Director of Technical Services Q. BOCC Agenda Item C27, April 16, 2003 R. Limited Warranty Policy Sign Off Agreement S. Equipment Lists T. E-mail From Audio Visual Innovations and Change Order Summary U. Limited Warranty Policy Sign Off Agreement, Change Order#2 V. Final Invoice From Audio Visual Innovations W. Memorandum From Former Director of Technical Services L'i X. E-mail From TDC Y. Memorandum From Finance Director Z. E-mail to Division Directors/Department Heads AA. Letter from Solarcom AB. Solarcom Invoices AC. Documentation on Christmas Party AD. E-mail Correspondence Between Former Director and SBC AE. E-mail From Howard Computers AF. Memorandum From Division Director of Management Services AG. Memorandum From Social Services AH. August 27, 2003 Notes Al. July 9, 2003 E-mails AJ. April 23, 2003 E-mails VII. AUDITEE RESPONSES Ir 1- I I i AUDIT REPORT OF MONROE COUNTY TECHNICAL SERVICES DEPARTMENT PURCHASING PRACTICES I. OBJECTIVES AND SCOPE At the request of the Monroe County Clerk of the Circuit Court and the County Administrator, the Internal Audit Department has completed an audit of the purchasing practices of the Technical Services Department. The audit objectives were to determine: 1. compliance with state and local laws, ordinances, and contracts, 2. policies and procedures are followed and properly document the system, 3. internal controls have been established and are being followed, and 4. whether expenditures maximize the use of public funds. II. METHODOLOGY A. We interviewed the following personnel to obtain information about the purchasing within the Technical Services Department: 1. The County Administrator 2. Division Director of Management Services 3. Technical Services Department Personnel 4. The Clerk's Finance Department Personnel 5. Richard Spencer, Senior Account Manager, Insight Corporate Solutions 6. Doug Wiener, Citrix Systems, Inc. 7. Janice Long, Senior Account Representative, Solarcom, LLC 8. Maggie McGee, Sales Representative, Howard Computers 9. Jesse Boehm, President, Innovative Web &Video Design 10. Odie Mills, Regional Director, Audio Visual Innovations 11. Kristy Kramer,National Account Manager, MoreDirect, Inc. 12. Ed Burr, Dedicated Technician, BellSouth 13. Jim Painter, Director IMS, Monroe County Sheriff's Office 14. Mike Trachtenberg, Teksystems, Inc. I^' 1 B. Internal Audit Department examined the following documents: 1. Florida Statutes related to procurement 2. Florida Statutes related to property acquisition and disposal 3. Monroe County Purchasing Policies 4. Clerk's Vendor Payment History 5. Detail sales listing from various vendors 6. Monroe County Administrative Instructions 7. Monroe County payment documentation, invoices, purchase orders 8. E-mail correspondence 9. Various state contracts for purchasing 10. Monroe County Code of Ordinance C. The Internal Audit Department reviewed the contracts completed by Technical Services to ensure that all terms and conditions were being complied with as documented within the agreement and the necessary approvals by County Management or the Board of County Commissioners were provided. D. Searched for Citrix license packages. E. Reviewed listing of items purchased for Technical Services inventory account. F. Reviewed invoices and compared them to list of purchases from vendors. G. Reviewed paid invoices for proper documentation and approval. 2 III. BACKGROUND INFORMATION Technical Services Department Function The Technical Services Department is responsible for Public Broadcast Facilities, Telecommunications and Computer Services for Monroe County. The Technical Services Department was the responsibility of the County Administrator until late December 2002. At that time, the Technical Services Department became the responsibility of the Division Director of Management Services. The Technical Services Department had twelve employees during the audit period. The Computer Services Function has the responsibility to have the knowledge and ability to analyze, design, plan and oversee all local and wide area network installations, providing technical specifications and development of technical standards. Computer Services also analyzes requests for new computer hardware, software and provides information to County departments on purchases and vendors. -- Channel 16 is the Public Broadcast media for Monroe County. Their primary responsibility is to televise County meetings. Meetings of the Board of County Commissioners, Planning Commission, Code Enforcement, Monroe County School Board, Annual Budget Hearings, as well as the Marathon City Council and other specially scheduled County meetings are broadcast live. When not broadcasting County meetings, Channel 16 airs a video bulletin board and NOAA weather. Financial Information The Technical Services adopted budget for fiscal year 2003 was $1,467,817. The Capital Outlay Expenditure Budget for the Technical Services Department for fiscal year 2003 was $49,892. According to Administrative Instruction 4404.1, County Computer and Internet Usage, "Information Systems has the sole responsibility for the approval of Purchase Orders and ordering of All computer hardware, application software, software licenses, copiers or multifunction devices and all other technology related purchases. Information Systems has the sole authority and responsibility to install, modify, or delete technological equipment, computer operating systems and applications software. No other County employee is authorized, without specific advance written approval from Information Systems, to install, delete, or modify in any way County computer equipment or software". The former Director of Technical Services had direct control of the Technical Services Budget of $1,467,817, but also recommended and contracted for all County department technology ' expenditures. In addition to established vendors being used, the former Director of Technical Services added twenty-six new vendors. The total expenditures for the new vendors from June ; 2002 through August 2003 was $452,863.78. 3 IV. Audit Conclusions: Al. The County paid $26,640 to Innovative Web and Video Design (IWVD) for 111 Citrix Xpe licenses. The President of IWVD issued a check totaling $9,155 to the former Director of Technical Services to obtain some of the licenses for the County. Three other checks totaling $816 were issued by IWVD to the former Director of Technical Services and appears to be approximately 5%profit on the purchase of Citrix licenses from IWVD. A2. During the audit, we were unable to locate, identify and determine whether and if all the 176 licenses the County paid for had actually been received. This is because of incomplete information regarding license numbers and/or serial numbers of the licenses paid for. It is possible the County is still due 51 licenses. A3. County departments were approving purchases of Citrix Xpe licenses not used in their departments. The departments purchased a total of 176 licenses at an approximate cost of $49,500 at the direction of the Technical Services Department and only 20 of these licenses have been activated. B 1. A contract for $49,040 for Internet Services executed by the former Director of Technical Services is in violation of the Monroe County Board of County Commissioners Purchasing Policies, Chapter 2 - Authorities and Duties. B2. A contract for $15,076 for unnecessary Internet Services at the Marathon Government Center was executed by the former Director of Technical Services. This contract was also in violation of Monroe County Commissioners Purchasing Policies, Chapter 2 - Authorities and Duties. The services would not work properly for the facility and the service should have been discontinued in late December 2002. B3. BellSouth Business Services Master Agreement and BellSouth Letter of Agency were executed by the former Director of Technical Services. The Agreements allowed the former Director to obtain additional County services based on his sole discretion. Cl. The dedicated BellSouth Technician was not used in cabling projects resulting in unnecessary labor expenses paid of$5,382. C2. The Technical Services Department approved the Request to Purchase, issued to Crosspoint Solutions, Inc., in the amount of$9,985.72 for cabling at the County Attorney's Office. This purchase order was subsequently voided by the Purchasing Department because a second quote wasn't received. A second quote was then provided by BellSouth for $5,926.49 and then inflated per instructions by the former Director of Technical Services. The second quote was inflated to $9,550.17 as the former Director instructed. Equipment totaling $1,875.01 was bought and charged to the County Attorney's Office which was not installed or intended for use in their office. The equipment was purchased 4 for Technical Services and is installed in the computer room. D1. Adjustments and corrections to the audio visual equipment project for the Marathon EOC contract approved by BOCC on February 19, 2003 in the amount of $47,670.03 was returned to the April 16, 2003 BOCC meeting for approval. The contract resubmitted had significant changes, although it was submitted giving the appearance of the original contract. D2. The original contract amount for the audio visual equipment after implementation was reduced by $12,782.71 and would have been an additional savings for the County. The former Director of Technical Services changed the scope of the project and added an additional unauthorized amount of$12,782.71 to the audio visual equipment project. E. The former Director of Technical Services established an asset account, Inventory - Equipment & Supplies, to purchase items in larger quantities for volume savings and/or to have common items available in stock to service work orders. The Technical Service Department did not provide the Clerk's Finance Department timely or accurate billings for the inventory. Fl. Equipment purchased for the Storage Area Network was expected to be $29,323. The former Director of Technical Services split these equipment costs over several purchase orders and created the part description "HP Storage Unit 10GB". He instructed the vendor to use the part description with a price of$300 each for a quantity of 45 on three invoices instead of listing the actual equipment costs. G. The former Director of Technical Services supplied documentation to County Administration regarding contributions made to the Christmas Party provided for the Technical Services staff. This documentation did not include a $200 gift from Richard Spencer of Comark/Insight Inc. Hl. A check payable to Monroe County for $806.25 from SBC Datacomm was returned to SBC and the former Director of Technical Services requested that a credit memo be issued in its place. The former Director requested the purchase of an item and enough quantity to use the entire credit. H2. The auditors reviewed detail reports provided by MoreDirect, Inc. The report had several credit memos that were not entered into the Clerk's finance records. A balance of$100 is due Monroe County. I. During the period of September 2002 to August 2003, the County purchased 74 new desktop computers and 9 notebook computers for approximately $141,000. Howard Computers established special pricing guidelines based on a projected purchase of 200 new desktop computers. Expenditures of this magnitude should be carefully planned, documented and approved. 5 r�. J. The Social Services Department had upgraded their computer system and had eleven computers that the Director of Social Services wanted to delete from the fixed assets inventory, transfer to the Technical Services Department and ultimately donate to the Senior Citizen Centers. The former Director of Technical Services requested maintenance personnel to dispose of the computers in the dumpsters before following procedures for disposal of surplus equipment. K. It was determined from e-mails between SDD Systems and the former Director of Technical Services that he was working on a consulting basis for SDD Systems during County working hours. 6 ; i V. Audit Findings A. Citrix Licenses 1. Employee doing business with their own governmental agency Finding: The County paid for 111 Citrix Xpe licenses for various County departments at $240 per license from a new vendor, Innovative Web and Video Design (IWVD), based on the recommendation of the former Director of Technical Services. Another vendor, Solarcom, LLC, agreed to provide Citrix licenses at the same price, although this quote was not submitted to the Purchasing Department. The licenses were for the implementation of a cost efficient and standardized network system for the County. The County paid a total amount of$26,640 to IWVD for the 111 licenses invoiced from IWVD. The owner of IWVD and the former Director of Technical Services were both employees at Hawk's Cay Resort until the former Director joined the County in June 2002. According to interviews with the President of IWVD, the former Director requested the licenses be invoiced in small increments and IWVD anticipated a 5%profit. IWVD billed the County on August 9, 2002 for 40 Citrix licenses totaling $9,600 on invoice #102. The invoice was approved by the Growth Management Director and the Coordinator of Budget and Personnel. On September 10, 2002, the County check was � deposited in IWVD's checking account. On September 13, 2003, IWVD kept $445 as profit and issued a check for $9,155 to Todd Erickson, former Director of Technical Services. According to interviews with the President of IWVD, the former Director of Technical Services was to supply licenses to the County with the $9,155 payment issued to the former Director. IWVD received another two payments from the County in September 2003, totaling $6,000 for 25 licenses invoiced (check #072984 for $3,120 pertaining to licenses, and check #073364 for $2,880). After receipt of the payment, IWVD issued check #2015 totaling $300 to Todd Erickson for what appears to be a 5%profit on these purchases. j In October 2003, IWVD received another three payments from the County totaling $10,320 for 43 licenses invoiced. After receipt of payment, IWVD issued two additional checks to Todd Erickson, check#2017 for$204 (5%profit on County checks#203739 for $240 and #073705 for $3,840) and check #2017 for $312 (5% profit on County check #203843 for $6,240). See Exhibit A - Analysis of Citrix License Transactions and li Checks Issued to Former Director of Technical Services. Section 112.313 (3), Florida Statutes, prohibits public employees from selling goods to their own agency and Section 112.313 (4), Florida Statutes, prohibits employees from accepting payment when such employee knows it was given to influence an action in 7 which the employee was expected to participate in his or her official capacity. This matter was referred to the State Attorney's Office. Ir ; Recommendation(s): 1. County Management should pursue restitution. County Administrator's Response: 1. The issue of the Citrix licenses is quite complicated. It does appear, based upon research, that the County did not receive all that it paid for. County management will develop, in conjunction with the County Attorney's office, a demand letter seeking restitution and will aggressively follow-up to be sure that restitution occurs. -`i 8 2. Unaccounted for Citrix licenses purchased f�k Finding: During the audit, we were unable to locate, identify and determine where and if the 176 licenses the County had paid for had actually been received. In September 2003, the Monroe County Sheriff's technical staff conducted a physical search for the Citrix licenses. They were able to physically locate 105 in the Technical Services Department in Key West and they were informed another 15 were in the Marathon office. Technical Services staff in Marathon informed the auditors they did not have Citrix licenses in the Marathon office. As of September 2003, of the 176 licenses purchased by the County, 20 licenses had been activated, although the license number for the 20 was not one of the packages located in the physical search. It was determined that 65 licenses of the 105 were purchased from Howard Computers in packages of 5 and were properly accounted for and received. IWVD indicated they had invoiced Monroe County for 105 licenses when they actually invoiced and were paid for 111 licenses. See Exhibit A - Analysis of Citrix License Transactions and Checks Issued to Former Director of Technical Services. IWVD informed the auditors that IWVD paid for 60 licenses that were purchased through Insight/Comark and IWVD stated the former Director of Technical Services was to supply 45 licenses to the County. This matter was referred to the State Attorney's Office. Review of the vendor report from Insight/Comark indicated 60 licenses had been billed and shipped to Monroe County and paid for by IWVD and the former Director of Technical Services. IWVD paid $10,082.08 for 40 licenses on invoice #92244873 and the former Director paid $4,994.00 for 20 licenses on invoice #9210437. See Exhibit B - Comark Invoices and Payment Information for Monroe County. IWVD informed the auditors that another 20 licenses were purchased for Monroe County and IWVD paid $5,396.31, which included sales tax of $374.48. However, Insight/Comark had billed and shipped the licenses to Hawk's Cay Resort. See Exhibit C - Comark Invoice and Payment Information for Hawk's Cay Resort. The former Director of Technical Services provided a listing of license numbers belonging to the County. The list contained license numbers for 3 packages of 20 licenses, for a total of 60. The auditors were able to determine that 20 of the licenses were identified in the physical search, 20 licenses were activated and were not found in the physical search and 20 of the licenses could not be identified. Because of incomplete information regarding license numbers and/or serial numbers of the licenses paid for, the auditors were unable to determine the actual licenses owned by the County. There appears to be a discrepancy in the number of licenses paid for by the County and it is possible the County is still due 51 licenses. However, due to the complex nature of software licensing the information is inconclusive. 9 11 -i Recommendation(s): 1. County Management should perform an audit of all licensed software installed on County computers to ensure that the County is in compliance with Federal Copyright Laws. 2. Adequate records for software and license purchases must be maintained to properly account for licensed software and software inventory. 3. County Management should seek reimbursement for licenses not received. County Administrator's Response: 1. The Administration is aware of the issue of missing Citrix licenses. It will certainly be a primary goal to identify which licenses are actually in the County's possession and which ones either never arrived or have been misplaced. The Administration will request the assistance of the Sheriff's technical section in tracking down such problems. There will be an aggressive campaign, as identified in the last response, to seek appropriate reimbursement. Policies and procedures will be developed to be sure that such a void does not occur again. 10 3. County departments approving purchase of Citrix licenses not used in department Finding• The Technical Services Department issued a memo informing County departments that all new computer purchases required the purchase of certain software. See Exhibit D - Software Requirements. The departments issued purchase orders for the Citrix licenses, - which is referred to as Xpe for $240.00 in the software requirements memo. The County departments purchased a total of 176 Citrix licenses at an approximate cost of $49,500 (111 licenses from IWVD and 65 from Howard Computers). Technical Services provided a listing of the departmental purchases to the auditors for the 111 licenses from IWVD. See Exhibit E - Citrix Xpe Purchases. Citrix licenses have not been implemented for usage in all departments. One example occurred in the Growth Management Department. The department had been invoiced for 40 Citrix Licenses and paid $9,600 to IWVD. See Exhibit F - IWVD Invoice for Growth Management for Citrix License Purchase. The purchase was for use with the implementation of the Pentamation program, however the Technical Services staff informed the auditors that Growth Management was using Ataman software rather than Citrix to provide the same technical needs. It was determined of the 176 Citrix licenses the County was invoiced and paid for, only 20 licenses had been activated. In October 2003, the Technical Service staff informed the j^ auditors the only departments utilizing the Citrix licenses were Social Services, the County Administrator's Office, and the Key West Library. According to Monroe County Administrative Instruction 4404.1, "All departments are required to purchase the appropriate software licenses that are necessary for use by their employees. Technical Services will determine and account for all software licenses in keeping with Federal Copyright Laws". Licensed software purchases should include verification of the license number and/or serial number before the purchase is approved for payment. Recommendation(s): 1. Technical Services should develop procedures to account for all licensed software. 2. Technical Services should develop and have approved a long range plan to avoid unnecessary expenditures. County Administrator's Response: 1. After Technical Services audits all County equipment for licenses and software; we will develop a procedure for keeping track of all additional licenses and software purchased. No purchase orders should be paid for licenses without the license number appearing on the invoice. 2. County Management is aware that a long-range plan is needed. During the time when we had an acting Director, a plan was prepared but was put on hold when we sought 11 to hire a permanent Director. That was an assignment given to the new Director and it was never finalized for presentation to the Board of County Commissioners. County Management will prepare a long-range plan for Board of County Commissioner approval during 2004. 12 B. BellSouth Business Services Master Agreement 1. Contract for $49,040 for Internet Services executed by the former Director of Technical Service in violation of the Monroe County Board of County Commissioners Purchasing Policies Finding• The former Director of Technical Services executed the BellSouth Business Services Master Agreement on September 20, 2002 for Internet Services. According to an e-mail Ifrom BellSouth personnel, the BellSouth Business Service Master Agreement (BBMSA) is an umbrella agreement for all services purchased from BellSouth. The monthly recurring charge was $751 per month ($18,024 per contract) plus an installation charge of $800. The contract term was for twenty-four months. On 11/19/02 before activation of the contact described above, the former Director of Technical Services upgraded the internet access speed from 512 Kbps to 3 Mbps (PVC Option). The monthly recurring charges increased to $2,010 per month and a total of $48,240 for the contract. The order was signed by the former Director of Technical Services on the line which states "Agreed to by Monroe County BOCC". See Exhibit G- BellSouth Business Services Master Agreement and 9/23/02 and 11/19/02 Order Summaries. This contract and the related upgrade were executed in violation of the Monroe County Purchasing Policy, Chapter 2 - Authority & Duties. Section A. Board of County Commissioners states the following: The Procurement Policy Office consists of the Monroe County Board of County Commissioners which is hereinafter referred to as the BOCC. 2. The BOCC shall decide all matters of policy including those referred to it by the Chief Procurement Officer. 2. No contract in excess of$1,000 for goods or services may be awarded without the approval of the Policy Office. The contract and the related upgrade were also in violation of Monroe County Purchasing Policy, Chapter 3 - Competitive Bid Process as follows: Any purchase or contract estimated to cost $25,000.01 or greater shall be awarded by competitive sealed bid. Section F. Award of Bid Contract The Mayor, when authorized by majority vote of the BOCC, shall execute formal contracts having a binding effect upon the County. Recommendation: 13 ;i ' 1. The Technical Services Department should follow the Monroe County Purchasing Policy. 2. County Management should refer this contract to the County Attorney's Office for review. County Administrator's Response: 1. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of our policy. It took, the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve our control over purchasing. It is apparent that the former Director of Technical Services signed the Master Agreement in clear violation of County policy. 2. The Master Agreement is a mechanism where changes can be made to facilitate the smooth operation of phone systems and equipment for the county. Having a contact person to authorize additions and subtractions to this contract of a minor nature is one way to facilitate phone service within the County. The policy will be reviewed for additional clarification and procedures to prevent changes in total dollar amount that exceed signature authority. This contract will be referred to the County Attorney to see what action needs to be taken to conform to the Purchasing Policy. • 14 2. Contract for $15,076 for unnecessary Internet Services in Marathon executed by the former Director of Technical Service Finding: The former Director of Technical Services executed an order form for Internet Services at the Marathon Government Center. The monthly recurring charge is $599 per month ($14,376 per contract) plus an additional installation charge of$800. The contract term is for twenty-four months. See Exhibit H - Order Form for Marathon Internet Services. It was determined the services would not work properly and the service should have been disconnected in late December 2002. In an e-mail from Technical Services staff in July 2003, the charge was questioned and a credit was requested for the last five billings at$599 per month. In an e-mail from the former Director of Technical Services to BellSouth he indicated that it was to be turned off with no contract penalty. The e-mail indicated that the former Director was aware a contract had been created and executed. This contract and the related upgrade were executed in violation of the Monroe County Purchasing Policy, Chapter 2 - Authority & Duties. Section A. Board of County Commissioners states the following: The Procurement Policy Office consists of the Monroe County Board of County Commissioners which is hereinafter referred to as the BOCC. 1. The BOCC shall decide all matters of policy including those referred to it by the Chief Procurement Officer. 2. No contract in excess of$1,000 for goods or services may be awarded without the approval of the Policy Office. Recommendation: 1. The Technical Services Department should follow the Monroe County Purchasing Policy. 2. County Management should ensure the service is removed and the credit is received from BellSouth. County Administrator's Response: 1. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of our policies. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve our control over purchasing. It is apparent that the former Director of Technical Services signed the order form in clear violation of County policy. 2. Service has been turned off and we will check with County Attorney to see if we are able to obtain restitution for service that did not have proper authorization. 15 3. The former Director of Technical Services designated himself as Agent for Monroe County BOCC to add services to BellSouth contracts Finding: BellSouth Business Services Master Agreement is an instrument used as an umbrella agreement for additional purchase contracts from BellSouth to reduce the amount of paperwork involved when ordering additional services. The former Director of Technical Services established the agreement in September 2002 and was provided the opportunity to order additional County services based on his sole discretion. The former Director obtained a contract for Internet Service in the amount of$49,040 in Key West, Internet Service in the amount of $15,076 in Marathon and a Virtual Personal Network (VPN) contract in the amount of$28,646. During negotiations for the services from BellSouth and also changes in the monthly billings, the Technical Services staff inquired about the authorization of the additional services from BellSouth. It was determined the former Director executed the agreement in the name of Monroe County BOCC without the BOCC approval. See Exhibit G - BellSouth Business Services Master Agreement. In addition to signing the Master Agreement, the former Director provided BellSouth a Letter of Agency that authorized him to place and coordinate orders for communications services and facilities and/or otherwise deal with and perform all ancillary and related matters. The document was provided to BellSouth on County letterhead signed by the former Director of Technical Services designating himself as the Authorized Agent for the Monroe County BOCC. See Exhibit I - Letter of Agency/Authorization. Recommendation: 1. County Management should monitor manager's and employee's activities for compliance with Monroe County policies and procedures. 2. County Management should refer this contract to the County Attorney's Office for review. County Administrator's Response: 1. When the monitoring process was beginning to reveal potential discrepancies, the County Administrator requested the audit to get to the full of extent of violations. The former Director of Technical Services intentionally signed this Agreement and took subsequent actions in violation of County policies and procedures. 2. The Master Agreement is a mechanism where changes can be made to facilitate the smooth operation of phone systems and equipment for the county. Having a contact person to authorize additions and subtractions to this contract of a minor nature is one way to facilitate phone service within the county. The policy will be reviewed for additional clarification and procedures to prevent changes in total dollar amount that exceed our signature authority. This contract will be referred to the County Attorney to see what action needs to be taken to conform to the Purchasing Policy. 16 C. Cabling Projects 1. Dedicated BellSouth Technician not used in cabling projects resulting in unnecessary labor expenses paid of$5,382. Finding: The County has a contract in the amount of $163,200 with BellSouth Communication Systems, LLC for a Dedicated Technician to work on the County's telephone lines. The contract states "The Dedicated Technician shall be primarily to provide the system warranty/maintentance work and secondarily, with time permitting, to provide incidental labor for moves, adds and changes". Traditionally, cable installation for Monroe County has been performed by the BellSouth Dedicated Technician. A new vendor, Crosspoint Solutions, Inc., was chosen by the former Director of Technical Services to provide cable installation for several different projects within the County beginning in March 2003. See Exhibit J - Memo From Former Director of Technical Service on Change in Computer Cabling Procedure. The President of Crosspoint Solutions, Inc., informed the auditors he had performed work at Hawk's Cay Resort and was referred to the County by Innovative Web and Video Design. The former Director of Technical Services and the owner of Innovative Web and Video Design worked together as employees of Hawk's Cay Resort. The vendor was paid $9,981.97 for labor and materials. Of the total paid $5,382 was labor to install the cable lines. The Dedicated Technician stated he would have performed the cable installations at no additional labor cost to the County. See Exhibit K- Letters from BellSouth Dedicated Technician. Recommendation(s): 1. County Management should confirm the necessity for private contractors before approving their use. County Administrator's Response: 1. The contract with BellSouth Communication states that "The dedicated Technician shall be primarily to provide system warranty/maintenance work and secondarily, with time permitting, to provide incidental labor for moves, adds and changes". This wording leaves open the option of having this work done by other contractors. This letter, Exhibit J, clearly indicates that the intention was to hire additional contractors to complete the necessary wiring. When questioned by management about this practice, it was explained by the department head that it should help accomplish the wiring at an accelerated pace to complete long-overdue projects. Management is always trying to get the best service at the lowest prices, but sometimes service is the guiding priority and not price. Hiring outside labor is not uncommon for county projects. It is, and should continue to be, a management prerogative within purchasing guidelines, to secure the services needed. However, in this case, there appears to be a relationship between the former Director of Technical Services and vendors utilized which lead to inappropriate business decisions. 17 2. Second quote originally not provided for cable project and then inflated per instructions from the former Director of Technical Services Finding: The Technical Services Department approved the Request to Purchase, issued to Crosspoint Solutions, Inc., in the amount of $9,985.72 for cabling at the County Attorney's Office. Purchase order 238545 was subsequently voided by the Purchasing Department because a second quote wasn't received. See Exhibit L - Purchase Order 238545, Request to Purchase and Quote. Monroe County BOCC Purchasing Policies, Chapter 2 - requires purchasing amounts from $5,000 to $10,000 to have two or more written quotes. The former Director was informed that a second quote was necessary by the Purchasing Department and he then requested the BellSouth Dedicated Technician to quote the project. The original quote from the BellSouth Dedicated Technician was for a total of $5,926.49. Crosspoint's quote included $3,268 of labor to install, the quote from the Technician included no labor charges. The Technician stated he was instructed by the former Director of Technical Services to issue a higher quote because the County Attorney was willing to spend $10,000 on the project. The next quote to the former Director was for $7,368.17. Again, the Technician was told to increase the quote. The final quote given to the former Director was $7,930.17 for listed materials, $1,500 in miscellaneous materials and $120 for shipping. The quote totaled$9,550.17 and the work was performed by BellSouth. See Exhibit K - Letters from BellSouth Dedicated Technician. The Technician was later told by the former Director to order a black box switch part #KV6112FA for $1,875.01 using the funds for miscellaneous material. The black box was not used by the County Attorney's Office and was installed in the computer room at 1200 Truman Avenue for use by the Technical Services Department. Vendors should not be instructed to inflate their quotes or purchase material that is not needed for the project. Fixed assets become the responsibility of the department purchasing. The Clerk's Finance Department needs accurate information to record fixed assets and their location. Recommendation(s): 1. The Technical Services Department should follow Monroe County Purchasing Policies. 2. The fixed assets charged to the County Attorney's Office should be transferred to the Technical Services Department. I�I County Administrator's Response: 1. It is critical that all departments follow our policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of policy. It took the depth of the audit to uncover many of the violations 18 discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve our control over purchasing. This is another example of the former Director intentionally ignoring County policy, appropriate procedures and good business practice. 2. Management concurs with the audit's recommendation. 19 D. Audio Visual Innovations Contract 1. Adjustments to Audio Visual Innovations contract Finding• The former Director of Technical Services submitted a contract to the Monroe County BOCC on February 19, 2003 to replace the existing visual control system at Marathon EOC for a total project cost of$47,670.03 stating it was an emergency. The contract was approved as Agenda Item D40. See Exhibit M - BOCC Agenda Item Summary D40, February 19, 2003. The Assistant County Attorney returned the contract to Technical Services stating "Please be advised that the Insight Global Finance, Inc. Contract placed before the County Commission at the February 19, 2003 meeting is not the same as the documents which were submitted to the Clerk of Court for execution". See Exhibit N - March 7, 2003 Memorandum. A new quote for equipment costs of$43,495.37 was received because the original quote was nearly a year old. See Exhibit 0 - Revised March 9, 2003 Proposal. The auditors were informed that the former Director of Technical Services instructed his staff to contact Audio Visual Innovations and have them include a line item for a contingency amount of $4,174.66 and maintain the amount originally approved by the BOCC of $47,670.03. See Exhibit P - E-mail to Audio Visual Innovations and March 9, 2003 Adjusted Proposal Summary by Former Director of Technical Services. It was the former Director's intention of utilizing all funds available for the project. The changed proposal was resubmitted to the BOCC on April 16, 2003 and created the appearance the original contract had remained the same, except for an additional $10,678.17 due to interest expense for leasing. The resubmitted contract was approved for$58,348.20. See Exhibit Q -BOCC Agenda Item C27, April 16, 2003. Vendors should not be instructed to quotes changeand ad d a contingency amount. A thorough review by management is required for all agenda items. According to Monroe County Administrative Instruction 1007.4 (2), Purpose - The Administrative Instruction is to define and promulgate the direct responsibilities of the Division Directors regarding the preparation, submission, and presentation of the MCBOCC agenda items falling within their purview to insure that said agenda items are complete, comprehensive, accurate, properly formatted and timely submitted. Recommendation: 1. The Technical Services Department should follow Monroe County Purchasing Policies. County Administrator's Response: 1. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of policy. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined 20 for necessary changes to improve our control over purchasing. Once again, the former Director of Technical Services was violating County policy and procedure to achieve whatever he viewed to be his call. In that effort, he apparently sought to misrepresent facts to the County Commission. 21 2. Change orders for Audio Visual Innovations contract Finding: On June 5, 2003, the audio visual project was completed and accepted by Monroe County Technical Services staff. See Exhibit R - Limited Warranty Policy Sign Off Agreement. The completed cost was $34,739.69 and included change order #1 for $200.00. The actual equipment installed was completed at a cost of $21,013.31 as compared to the original equipment cost of$30,181.43. See Exhibit S - Equipment Lists. The auditor was informed by Odie Mills, Regional Director of Audio Visual Innovations, that the project was substantially less expensive than anticipated due to equipment the County was currently utilizing and capable of interfacing with the new equipment. Therefore, the scope of the contract was reduced and provided Monroe County a savings of$12,782.71. The former Director of Technical Services subsequently added an additional $12,782.71 for assets not related to the original scope of the contract. Audio Visual Innovations provided a change order summary on June 18, 2003. See Exhibit T - E-mail From Audio Visual Innovations and Change Order Summary. He requested the purchase of five additional cameras and various other equipment. Several of these items are located in the Key West Technical Services Department and are not currently being used. The Final Acceptance of Installation and Sign Off was accepted on July 24, 2003 by the former Director of Technical Services and included change order #2 in the amount of $12,782.71. See Exhibit U-Limited Warranty Policy Sign Off Agreement, Change Order #2. The final invoice for the project of $47,522.00 had the appearance of the original contract and was completed within the original approved amount. See Exhibit V - Final Invoice From Audio Visual Innovation. The auditor was informed by Audio Visual Innovations that the change orders were included in the final invoice, again giving the appearance of the original contract. Monroe County Code of Ordinance, Sec. 2-9-1(d)(e), states if a change order results in a decrease in the contract price (either the original contract price or the contract after prior change orders), the amount of that decrease may not be utilized by employees, agents or contractors of the county to fund a subsequent change order, contract amendment or any other alteration of the original scope of work without following the procedures set forth in this section. The procedures in the section requires the appropriate approval by the County Administrator or the BOCC, as well as numerous other requirements regarding change orders. Recommendation: 1. The Technical Services Department should follow Monroe County Code of Ordinances. 2. The Technical Services Department should follow Monroe County Purchasing Policies. 22 County Administrator's Response: 1. The Monroe County Purchasing Policies will be reviewed for adequate references for ordinances that impact purchasing. When work comes in at less than original contract, it should be finalized without adding additional items/services to the contract. Any additional equipment should be purchased under purchasing rules. 2. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of our policy. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve.our control over purchasing. Once again, it is apparent that the former Director of Technical Services intentionally violated Monroe County's Code of Ordinances and Purchasing Policies. 23 E. Inventory Account for Technical Services Department - Finding: The former Director of Technical Services established an asset account, 141003 - Inventory-Equipment & Supplies, in December 2002 to purchase items in larger quantities for volume savings and/or to have common items available in stock to service work orders. The inventory was initially set up with a ceiling of $50,000. See Exhibit W - Memorandum From Former Director of Technical Services. As of September 30, 2003, the balance of the inventory account according to the Clerk's Finance Department was $57,638.38. As inventory purchases were received, the Technical Services staff would enter the items into the inventory database with a markup cost averaging 10%. Theoretically, as work orders were processed and if they required items that were maintained in the inventory, the system would automatically be updated and the inventory released. When the work order was closed an e-mail was sent to the person to confirm the parts were received. -- Quarterly, the Technical Services Department was to generate billing statements to the Clerk's Finance Department and charge the expense to the appropriate department for the inventory used. The system had also been designed to bill the County departments for storage and backup space. The Technical Services Department did not provide the Clerk's Finance Department timely or accurate billings for the inventory. During the 10 month period, the Finance Department received billings in the amount of $7,190.76. A physical inventory was conducted in the Technical Services Department and it was determined the items available in inventory had a value of $46,144.05. If the former Director of Technical Services included a 10% markup on the items entered in the Inventory Management System, the actual amount of the inventory value would be adjusted to $41,949.14. This represents a discrepancy of approximately $15,000.00 compared to the Finance Department general ledger records. The following example of the markup applied to the inventory for billing departments demonstrates inconsistency in the former Director's procedure: Keyfob Per Unit Dept. Invoice# P.O. # Description Total Inv. +License + 10% Billing 92811253 238798 Keyfobs 25 pack 3 yr $1,432.00 $57.28 $63.01 $217.89 Tourist Development Council (TDC) questioned the Technical Services Department on the charge of a keyfob issued and billed to their department for $217.89. See Exhibit X - E-mail From TDC. An analysis of the inventory value for the keyfob indicated items were not valued as described by the former Director in his memo. The invoice from 24 Insight Corporate Solutions in June 2003 for the keyfobs also includes the per seat software license in the total price. A thorough review of vendor invoices compared to the Technical Services Department inventory would be necessary to reconcile the inventory account. Inventory parts that have been used in County departments to repair computer equipment should be billed directly to those departments. During the physical inventory, several items were discovered that should have been tagged as capital assets. The Clerk's Finance Department was unable to identify the assets due to split purchase orders and incorrect invoice descriptions. As of September 30, 2003, $36,204.70 in the Technical Services Department inventory account was identified as capital assets and tagged during the audit. Review of the inventory account, accounting procedures and the general processes to maintain the account by the Clerk's Finance Department determined the account was maintained improperly and as of October 2, 2003 the account is on freeze. See Exhibit Y -Memorandum From Finance Director. Recommendation(s): 1. Technical Services should review the inventory management records and bill County departments for parts used. 2. Inventory items need to be adjusted to actual cost by the Technical Services Department. County Administrator's Response: 1. The billing of county departments is currently on hold, until a procedure is worked out to successfully accomplish that action. Inventory accounts should not be set up without assurance that the procedure is in place to bill individual using department. The Management Services Division has been limiting and eliminating inventory accounts and procedures will be put in place to control the growth of inventory accounts. 2. Inventory has been verified at cost plus shipping and sent to Finance Director on • November 2, 2003 with instructions for unaccounted for items to be billed to Technical Services as part of the close-out of FY 2003. 25 '.J F. Solarcom,LLC Instructed To Change Invoice Descriptions Finding• The former Director of Technical Services was restructuring the billing charges to the County departments for storage and backup of data. In an e-mail to the Division Directors and Department Heads, the former Director of Technical Services explained that each department would be billed $300.00 per 10 gigabytes of storage capacity. He explains the purchase of a larger unit rather than dozens of individual purchases as being a more complete solution. See Exhibit Z - E-mail to Division Directors/Department Heads. The former Director was working with Janice Long, Senior Account Executive of Solarcom, LLC to purchase the equipment for a larger storage solution. In a letter from Janice Long to the auditors, she indicated the total project cost for the Storage Area Network was expected to be $29,323.00. She states the former Director explained he would be preparing a method to purchase the Storage Area Network, which requires a housing device, disk drives and tape backup equipment and he created the description - "HP Storage Unit 10GB" to be billed at $300 each on the invoice. The former Director explained the request was to ultimately charge back disk space to each County department that requested additional disk or storage space on the network. Solarcom agreed to produce misleading descriptions on the invoices to the County as requested by the former Director of Technical Services. See Exhibit AA- Letter From Solarcom. The equipment was split on several purchase orders with the exception of purchase order #233986. According to Monroe County Code of Ordinance #032-1998, Competitive Bidding Procedures, Section 5.(a), a contract may not be split into multiple contracts for services, goods or public improvements for the purpose of evading the requirements of this Ordinance. The remaining three purchase orders were billed as 15 each of 10GB Storage and misrepresented the fact that the purchases were capital equipment. See Exhibit AB - Solarcom Invoices. Following is the fixed asset purchases and corresponding purchase orders: Monroe County P.O.'s & Solarcom Invoices Solarcom PO #233986 PO #238475 PO #235369 PO# 235041 Description Purchase Inv. #35278 Inv. #870138 Inv. #840925 Inv. #839443 Adaptec DuraStor Subsystem $15,853.00 $15,853.00 (1) 146GB Disk Drives $1,049.00 HP SureStore Autoloader $7,229.00 (10) Cartridges $820.00 (2) 146GB Hard Drives $2,180.00 (15) Cartridges $1,230.00 (1) 146 GB Hard Drives $1,090.00 15 - 10GB HP Storage @$300 $4,500.00 $4,500.00 $4,500.00 Total $29,451.00 $15,853.00 $4,500.00 $4,500.00 $4,500.00 26 Monroe County BOCC Purchasing Policies, Chapter 2 - requires purchasing amounts from $5,000 to $10,000 to have two or more written quotes and a signature by the Division Director. In addition, equipment purchases greater than $25,000.01 requires BOCC approval. The equipment was not considered a capital purchase because the invoices indicated the purchase of (15)10GB Storage Units at $300.00. Florida Statute 272.02 requires nonconsumable purchases of$750.00 with a normal expected usage greater than one year to be captured and recorded as capital assets. During the audit, the items were identified and properly accounted for as capital assets. Recommendation(s): 1. Purchase orders should not be split to avoid purchasing limits to circumvent County policies. 2. County personnel should not authorize payment of invoices, if verification of goods received is not complete and accurate. 3. Vague or inconsistent documentation should be questioned by the Technical Service Department staff. 4. Clerk's Finance Department should require packing slips and/or receiving reports that have been reconciled to the invoice prior to payment. County Administrator's Response: 1. Our policy prohibits splitting purchase orders. This was a clear violation of our policy. Had all purchase orders been combined into one purchase order, it still would not have been elevated to the amount that would have required a formal bid process. It could have been approved by the County Administrator with two written quotes as documentation. The apparent manipulation of the total purchases and price appears to be an attempt to avoid policy control and oversight. 2. The Administration agrees with recommendation 2 and will look for ways to enhance our policies and procedures to prevent it from happening again. 3. The Administration agrees with recommendation 3 and will look for ways to enhance our policies and procedures to prevent it from happening again. 4. The Administration agrees with recommendation 4 and thought that the Clerk's Finance Department was requiring packing slips and/or receiving reports currently. County Administrator requests the Clerk's Finance Department not to pay for any item without proper supporting documentation. Finance Department Response: 1. Proper supporting documentation does not necessarily include packing slips and/or receiving reports. The County's procedure is for an authorized employee to sign the invoices verifying that the goods are received and that the invoice is approved for payment. This finding was not identified by the Finance Department due to vendor collusion. The invoice had been amended according to the instructions of the authorized employee's request. Likewise, the vendor could have revised the 27 information on the packing slips and/or receiving reports. As the Finance Department is continuously reviewing accounting internal controls, we will reconsider implementing this suggested control. 28 G. Catered Christmas Party Finding: The Technical Services staff informed the auditors that the Sales Representative of Howard Computers, Maggie McGee, had helped cater the Christmas Party hosted by the former Director of Technical Services. Maggie McGee stated she had used her Howard Computer expense account and paid $300.00 to Great Events as a contribution to the Christmas Party. County Administration counseled the former Director in February 2003 on the receipt of gifts over $25 and requested documentation on the contributions from the vendors for the Christmas Party. In his documentation to County Administration, the former Director mentioned a $100 contribution from Solarcom and a contribution from Howard Computers of approximately $250. See Exhibit AC - Documentation on Christmas Party. During the audit, it was revealed that Richard Spencer from Comark/Insight had also paid $200 to Great Events for the Christmas Party. The former Director did not mention this contribution to County Administration when documenting the contributions. Recommendation(s): 1. County Administration should refer this to the County Attorney's Office for review of statutory requirements. County Administrator's Response: 1. County Administrator will forward this information to the County Attorney for necessary action. Prior to the audit, the County Administrator had received information in reference to the possibility that the Christmas party was at least partially under-written by vendors. The County Administrator discussed this with the former Director of Technical Services and was assured that there was a lack of understanding of public policy, that it would not happen again, and that the amounts involved were not substantial. The amounts identified in the audit are significantly higher than represented to the Administrator by the former Director of Technical Services. 29 H. Credit Memos From Vendors 1. Refund check returned to SBC for credit Finding: The Technical Services Department received a check for $806.25 from SBC Datacomm. The check was issued to Monroe County in July 2003 for an outstanding credit memo dated January 31, 2000. Technical Service staff informed the auditors the former Director of Technical Services requested the check be returned and a credit be issued to Monroe County to purchase additional supplies. SBC sent an e-mail to the former Director asking for additional information regarding the credit, the former Director replied that a check had been issued for approximately $800 and was returned because there was no way for the County to receive money. The former Director requested the purchase of an item and enough quantity to use the entire credit. See Exhibit AD - E-mail Correspondence Between Former Director of Technical Service and SBC. The items were ordered and shipped to Monroe County. The auditors requested the Clerk's Finance Department to research the original credit memo and the August 18, 2003 invoice. The Finance Department did not have either document recorded in the system. All invoices and credit memos are to be forwarded to the Finance Department in order to maintain adequate accounting records. It is clear the credit memo was generated prior to the former Director's employment with the County and proper procedures in 2000 would have curtailed the manipulation of purchases. Stronger internal controls require procedures to detect receipt of invoices and credit memo. Recommendation(s): 1. Good internal accounting controls require all invoices and credit memos be forwarded to the Clerk's Finance Department to maintain adequate accounting records. County Administrator's Response: 1. Instructions on how to process credits will be issued to make this part of our Purchasing Policies &Procedures. 30 2. Credits due from MoreDirect, Inc. Finding• The auditors reviewed detail reports provided by all new vendors established by the former Director of Technical Services. One vendor, MoreDirect, Inc., had several credit memos that were not entered in the Clerk's finance records. A request for the Accounts Receivable Statement was made and MoreDirect informed the auditors that Monroe County had a zero balance. An inquiry was made in reference to credit memos and MoreDirect explained that credit memos issued are applied to the original invoice. Invoice#371030 in the amount of$330.00 was paid by the County on check#79285. The product was returned on credit memo #391816. The original invoice was not credited and the auditor was informed a credit of $230.00 was applied to invoice #427644 and a $100.00 balance is due Monroe County. The auditors requested the Clerk's Finance Department to research the credit memo #391816 and invoice #427644, neither document had been recorded in the system. All invoices and credit memos are to be forwarded to the Finance Department in order to maintain adequate accounting records. Stronger internal controls require procedures to detect receipt of invoices and credit memos. Recommendation(s): 1. The Technical Services Department should request a refund check from MoreDirect and determine if other credits are due the County. 2. Good internal accounting controls require all invoices and credit memos be forwarded to the Clerk's Finance Department to maintain adequate accounting records. County Administrator's Response: 1. Technical Services Department will review all transactions with MoreDirect and request appropriate refunds/credits. 2. Instructions on how to process credits. will be issued to make this part of our Purchasing Policies &Procedures. 31 I. Howard Computers 1. Desktop computers purchased through Howard Computers Finding: It has been customary for the County to purchase new computers from Dell Computer Corporation and in July 2002 the former Director of Technical Services purchased 18 new desktop computers from Colfax International. In September 2002, the former Director of Technical Services again changed vendors and began purchasing new computers from Howard Computers. During the period of September 2002 to August 2003, the County purchased 74 new desktop computers and 9 notebook computers for approximately $141,000. Howard Computer Sales Representative, Maggie McGee, informed the auditors that a presentation of products was prepared for Monroe County in September 2002 prior to the new fiscal year starting. The Sales Representative indicated Monroe County had unique needs and required special configurations. Howard Computers established special pricing guidelines based on a projected purchase of 200 new desktop computers, per a conversation with the former Director of Technical Services. See Exhibit AE - E-mail From Howard Computers. Monroe County has been invoiced approximately$118,000 for 74 new desktop computers during the eleven month period. The former Director exceeded his authority based on a commitment to purchase 200 new desktop computers from Howard Computers. Howard Computers qualifies under the State of Florida's Purchasing Contract Number - 250-000-03-01 and no additional quotes were provided, however other vendors should have been considered. The purchases were in violation of Monroe County Code of Ordinance. The Monroe County Code of Ordinance, Competitive Bidding Procedures, Section 2-541(e)(3), states the following in regards to State Contracts: When the goods or services sought are expected to cost twenty-five thousand dollars ($25,000.00) or more and are available to the county through an existing contract between a vendor and the State of Florida, the United States, or another Florida County, municipality or special district, then compliance with the terms of this section is not required. However, before any purchase is made through an existing contract, the purchasing director must first contact other South Florida vendors in order to determine if the goods or services sought are available at a lower price than the price(s) of the existing contract. If the goods or services are available from another vendor at a lower price than the existing contract, then the contract for the goods or services must be awarded to that vendor. The purchase of the goods or services sought may be made through the existing contract if none of the other vendors contacted by the purchasing director offered the goods or services at a price lower than the price of the existing contract. 32 The Division Director of Management Services requested a cost comparison between the Dell and Howard computer. See Exhibit AF - Memorandum from Division Director of Management Services. The memorandum from the Division Director noted the primary difference between the cost of Dell and Howard Computers was the inclusion of the Citrix license at a cost of$366.22. By subtracting the Citrix cost of$366.22, it was determined the Howard computer was higher than the Dell. Recommendation(s): 1. Information Technology expenditures of this magnitude should be carefully planned, documented and approved. County Administrator's Response: 1. Information Technology does not decide who budgets a computer. Departments determine if they want and/or need to purchase new computers. At any given time, Technical Services does not plan who gets computers, but responds to who needs new computers. Information Systems publishes pricing for the budget process based on historic trends of computer replacements. County Administration will have a 5-year plan finalized and completed to the BOCC for approval during 2004. In this we will make a recommendation on the frequency of computer replacements. I I 33 2. Citrix licenses purchased through Howard Computers Finding• It was determined that as of August 2003, Howard Computer had shipped and billed for 65 Citrix licenses, manufacture part number EW24CLE0005. The licenses are invoiced individually with each computer and the licenses are shipped in packages of 5 after the purchase of 5 computers. Five licenses purchased from Howard Computers is a cost of $366.22 each for a total of $1,831.10, based on the quote provided by the Division Director of Management Services. See Exhibit AF - Memorandum from Division Director of Management Services. Citrix Corporation has a state contract number 252-036-03-1 and the suggested retail cost of the same part number of 5 is $1,333.20. This results in an overpayment of $99.58 per license or $6,472.70 for the 65 licenses purchased by Monroe County. The quote provided by Howard Computers included the Citrix license in a bundled software package and sold as part of the computer equipment and gave the impression it was a necessary part of the desktop computer purchase. Recommendation(s): 1. Management should thoroughly review quotes to determine if products included in a purchase might be more cost efficient on an individual basis. County Administrator's Response: 1. County Administrator agrees with recommendation and will have staff complete a review of quotes. Please refer to previous responses in reference Citrix licenses. 34 J. Unauthorized Disposal of Equipment Finding: The Social Services Department had upgraded their computer system and had eleven computers that the Director of Social Services wanted to delete from the fixed asset inventory, transfer to the Technical Services Department and ultimately donate to the Senior Citizen Centers. The transfer was discussed with the Division Director of Management Services and was approved based on the storage space needed for Social Services personnel. See Exhibit AG - Memorandum From Social Services. The Social Services Department transferred the computers to the Technical Services Department with the Fixed Asset Forms and the Inventory Deletion Requests. The equipment was delivered to the Harvey Government Center and the former Director of Technical Services accepted the delivery and signed the documents. The former Director of Technical Services requested the maintenance personnel to dispose of the computers in the dumpsters. Maintenance inquired if there had been approval to dispose of the equipment and the former Director informed him it was going to be bulked on the next Commission Agenda and would be approved. See Exhibit AH - August 27, 2003 Notes. The Director of Social Services discovered the equipment had been disposed of and contacted the Clerk and the Director of Finance. The Property Clerk was requested to do an inventory of the equipment, but all the equipment had been sent to the dumpster. County procedures require the Division Director's review and approval of the Inventory Deletion Request forms prior to disposal. The forms are to be forwarded to the Clerk's Property Clerk to verify all items listed on the Inventory Deletion Request and to prepare the BOCC Agenda Item Summary and a Schedule of Surplus Items. The former Director of Technical Services circumvented County procedures. If proper procedures had been followed, the Division Director of Management Services would have approved the disposal or the donation of the equipment and prevented the misuse of surplus equipment. Recommendation(s): 1. The Technical Services Department should have followed procedures for disposal of surplus equipment. County Administrator's Response: 1. County Administrator agrees that departments should follow established procedures for the disposal of equipment. To Management's knowledge this is the first substantial and intentional case of that policy not being followed. Agenda prepared requesting Board permission to remove items from inventory. Board approved that action. 35 K. Performance of Outside Work on Monroe County Time Finding• The President of Innovative Web & Video Design informed the auditors that the former Director of Technical Services had clients he worked for, in addition to his County position. We were informed his business name was ThinClient Consulting. The former Director previously was employed by Hawk's Cay Resort and implemented the JAZZ Accounting System for the resort. The JAZZ Enterprise Software is a development of SDD Systems and the former Director had a strong vendor relationship with SDD during the implementation at Hawk's Cay Resort. It was determined from e-mails between SDD and the former Director that he was working on a consulting basis for SDD, which occurred during County working hours. See Exhibit AI - July 9, 2003 E-mails. The Technical Services staff also informed the auditors that a software program, File Magic, was on the County server and that it is not a program used by the County. In an e-mail from one of the former Director's client, Johnson Insurance, the client referred to the program and in the response from the former Director it appeared he was able to remotely access Johnson Insurance's computer system and resolve the problem. The correspondence occurred during County business hours. See Exhibit AJ - April 23, 2003 E-mails. Recommendation(s): 1. County Administration should ensure that County employees do not conduct private business either from their public offices or during County business hours. 2. The Technical Services Department should remove any unauthorized software off the County server. County Administrator's Response: 1. It is currently against County Personnel Policy & Procedure to conduct private business either on county property or during county business hours. This action is cause for disciplinary action. Employee terminated his employment prior to this audit being finalized and this item being discovered. 2. As part of the inventory of software and licenses, we will take necessary steps to remove unauthorized software from County equipment. 36 VI . Exhibits Exhibit A Analysis of Citrix License Transactions and Checks Issued to Former Director of Technical Services Analysis of Citrix License Transactions Monroe County Technical Services Department. September 23,2003 Todd Todd Innovative Web& IWVD IWVD I Todd Erickson Erickson Erickson Net Video Design Receipts from IWVD Payments to IWVD Purchases from Payments to Todd Erickson IWVD Net (Receipts (IWVD)Invoices to Monroe Purchases from Insight/ Payments to Insight/Comark in Insight/ Receipts from (Receipts less less Monroe County County Insight/Comark Comark Todd Erickson Monroe Co.Name Comark IWVD Payments) I Payments) Date ,(nv_#/Chk_# Qty Amount Amount Amount Aunt Qty Amount Amount Amount Qty. Amount Amount Amount Amount 08/09/20021 102 $9,600.00 40: 08/18/2002 124 $240.00 1 j I • 08/20/2002f 127 $2,640.00 11I 08/20/2002 132 $240.00 11 , 09/06/2002 131 $480.00 2 : 09/06/2002 126 I $240.00 1 09/06/2002I 123 • $2,400.00 10! : • I I 09/06/2002I 125 i $240.00 1 ! • • 09/06/2002! 128 $240.00 1: • • 09/10/2002, 72403 IWVD $9.600.00 09/10/2002 2013 Todd Erickson $9,155.00 09/10/2002 133 ! $6,240.00 26 i i $9,155.00 09/15/2002! 135 $2,880.00 12' ' 09/15/2002I 136 $240.00 1 • 09/18/2002i 137 j $240.00 1 09/24/2002! 72984 IWVD $3.120.00 • 09/25/2002 9210437 i • .09/25/2002 2015 Todd Erickson ; I I $300 $4,994.00 20 09/30/2002: 148 i $480.00 2. $300.00 09130/2002: 73364 ' IWVD $2.880.00: • 09/30/2002 I 1565 Insight/Comark I ! $4,994.00 ! 10/08/2002 1 n/a i $5,396.31 20 • 10/09/2002! 203739 IWVD $240.00; • 10/10/2002' 149 $240.00 1 . 10/13/2002: 2017 Todd Erickson $204.00. . 10/14/2002 2019 Todd Erickson • $312.00 $312.00 $312.00 j 10/16/2002I 73705 IWVD I $3,840.00: ! I I 10/16/2002! 203843 I IWVD $6,240.00: n/a Insight/Comark ! $5,396.31. . • 11/13/20021 74808 IWVD $720.00: ' 11/18/2002I 92244873 $10,082.08 40? 12/04/20021 2022 Insight/Comark; $10,082.08 I I i I I I I 1 Tot __ -___L____ _ $26 640_00_111 I $26,640.00 $5 396.31 20 $15,478.39 $9,971.00 $15,076.08 60! $4 994.00 $9,971.00 $1190.61 I $4,977.00 TECH SCHEDULES.123,11/24/2003 I '-- I �' 10/02/2UU3 01:1U FAA. 3057435215 Hawks Cay LJ )U4 { Bank of America I , INNOVATIVE WEB Ii 1'.!DEO DESIGN,LLD 2D13 • 111 STIRRUP Id:Y NC C i06 RD.APT.3. , MARATHON R 3G,Z9S6 Q 1 (/ GATE_ 1 -1 7-Loot-. � 3TOTHE ORDER��PAY :�roDoa : .ten j$ 9pAO 5 ,��y�-, s Ji0 9�1 ",[1�d1�' "� i- ''"y\� 1C'��' °/sr :[►OLLARS 8 ^��.L BalnkotArnerilea, Acx Paca,oarr 4 11; 603( • • . _, I r'0D 20131' -- . - . - - . IanliCaMillaintrAillaugillftsgiNO y !]09 3 5 500�' aI _ _mina • �V J } ?& K B 1161(0.4 Mt :i375123 o 146111 P43 11 CI `Lw ot Capture Date: 20020917 Sequence#: 6540112 972 f Page 2 of 2 Print Req.#1i11671 The Sop 23 22:11:06 PD1-2003 1 Ill/U2/2003 01:10 FAX 3057435215 Hawks Cay Z 365 Bank of America °114'1. f. r • . ' . ' .....`,;,..k.,,` i;;Fk.Fili_•51:1iiiii6: TTI 17. irNT.:47171.70411. 3M12' °. ..151/111;111; .1/1118iii;;A' .1 INNOVATIVE WEE a VIDEO DESIGN,Lie • • • .• ' •2017 , 1 • • Ail STIRRUP KEY SMOOS RD,APT.9.42 . - . • '• • 14ARAMON,IL 330504955 . • . . • • 811411,10 it ' D4TE 14"51•Dat. SIM PAY • i lain:* ---4z1V tg4Q2,110 _JS 2041-0 I Sao_humataill.3•11-004, zol, subszars -------_DOLLARS ,,,,,.....) 13ankoilmerica. • ....4*, ..,mm,••••••• ACM0111033TT i -___.-.—..... il -•-1.•:::.... ...........*.,....--.....--....-.---r ' . FoRmitri 4 1-1113 . 000 20 1?N' . __ 11 0'00000 20400, •• .ramiliazidowiminamoammeteilikisissaimsamatzaazi. . .i...",.......,.......................„,A -. ......4 • I . ... ... I • .,_ --- BAK S NEI14,1%SA. • • NNW EOM ilE poi )..g, ton 13;41 ...:— lerilt42 c 1.'au ma N.MU . COMO Ft 14221102 _ 77An k0 i 7-77 .r r-•..i 1 i L i 7.21:77.n.r.:Erit, I •• :.. . .1 7.: ;4.. Capture Data:20021021 Sequence #: 7740131727 Page 2 of 2 Print Req.1514869 TU.1 Sep 23 22:10:47 ''DT 2003 1u/02/2003 03:10 FAX 3057435215 Hawks Cay Z )07 -1 • 1 ' Bankoffimerica ...... 1 ' :- gqillg.121MMtii12;12 :e:a- !ITFIT.7177;17:a:IrriThir77 I ilIY billzamaxman Wm • INNOVATIVE WED li V!DEO DESIGN,LLC 2015 ill STIRRUP KEY*NC(IDS RD.AR.2.13-2 MARATHON,FL 33050-21185 • OAT'I_ 1:124.1.W. . 17.14111 '..i PAY 1 Ma or -TODD F•iti CA:50 364:- er _ qtr:-.— .L ti0fOCktOr .r.atui __2204, --______________—COLLARS 8 -,....4.1. BankafAmerica.1 ACoRiroimozn• 7 --- _ . . FOR : 5 0 • __. 1 _04, , . poo ___• L . i • 430030001V. • •: Giagaimmesima3G1RIMIRItradifiagamigazukantxtaw I- ......s• milLtgaiLanickumw _ • It II, A i %. •,„../ rV _ . IN 1-"•, , . ":4 4vig•i:•; .,: .•••• !..?-)i:,-.3,:11:::',71.554:•Pil,... -,•,.•••••.; t,.. • • •• • . : : •4 -- - .F.IP,.: .. . .. .. - . . I.::-..; '•-• -:-.. '....-` ' ' ".'."" .".-- : 4 '\‘. 4-: -. • : - :.'-:L..''..7 I I 1 Capture Date:20021001 Soquence II: 6740744 138 --, Page 2 or 2 Print Req.#5141163 Tue Se)23 22:10:45 POT 2003 ; I i , Exhibit B Comark Invoices and Payment Information for Monroe County 09/15/2003 03:31 B1353 7/fi/f:i C�UMAKK PAGE 02 Please remit to: COMARK CORP. SALES, INC. P.O. BOX 70212 CHICAGO, ILLINOIS 60673--C 212 • •. B.N. 86676685u RT BM To: 361925 in 4 . ..: ..:.... Monroe County H000 Invoice Number 92108437 C41s Roth • Date 09/25/2002 1200 Truman Avenue P/0 Numbe'• TE925 Key Went FL 33040 Sales Order No. 1661702 Payer Number 3 619 2 5 Account Clerk K BARTELLO Ship To: 361925 Sales Rep No. 2773 - RICHARD RJ SPENCER Monroe County Boca Page 1 / 1 Todd Erickson POI TE925 1200 Truman Avenue • Key West FL 33040 - • Conditions Currency USD Terms of payment; 30 Daylt • Ship Via: FEDERAL EXPRESS / Material Descriptio.1 Oty Price Ext. Price EW22XYE1020 METAFRAME XPE 1.0 STRT SYS 20 1 4950.00 4950.00 Subtotal 4,950.00 Ttl Freight Chg 44.00 Total amount due 4,994.00 • BANK ON.E.i f To,.X A irlu n 1565 t ices C Erickson A JMarmn{on 15Su mica(Xis, r�Orlda jo$2 �� cempMY C MAiiK INC I y Doer 6a laekba*:0070212 Co..n C7 y�G/ Clre:X �Moduh,: 12 .J_ Poj-ro i•.ti:ido4rq/ `o 1- orle— � " I $ 1iQ 1(�0•� IC Deperit Inlorriirr00,n_• .. .y� �� 1. - ` Cm&:101D71 2' -- s' Uhc ►ej hihC1'1 yr• etW2y �, Process: 10/09/2002 a J nl _ " L6Fss 8 ' i IBrach I:961Mui1i Multiples• { Flr�ro u N�aNM11 �,IK A OF Fw uO 4 Af if in a deao ' Transaction:027 Item:027 IIio-f]S•1013 hack Amount:4,114,00 Survey: .. ___J -1 �Qi. a tog 437 --i1 ` j2) 51 1 ar '""4�O set: eul :033 Snqu.nee:212 1 1;1;16300002i4 i 56 5 .1 000 0 t.9 9 4 DOr X 4=} I aIT L. -- l G'F- /MAN I ►mwn•�st/ 4.11. n.+'\rr�nwwm+;04..ft1:•]fi7:j'r2 Lis.rrr,7'wri}_I:_L'rur np�.l wrarn+ � � HE_ J INNOVATIVE WEB A VIDEO DESIGN,lap 2022 maitea. to ItnRaur ear woo no.MT•;bars <Xs)149.98 1 �/ "�� FWtATttar+•R see.a+aa D TG Dr•, -!. �t � ernan Company:CCMARK•INC I�Av il Pa /1n�,, /� _ Leckbox�0A70717 I• y•! A/ _ ��—O e * Q�j 4ke:X Module: 12 Qlp �l/7r It f dG (,Z]_Q/� , � �LnR6 �• _--TOT'I a��i1 ---..._J IhankofAmirICl. �didlt r I7W� 0. • Proeeae 12i101200i •� 1 m■mom±n , Satoh/I.294 MulOolro 111 ! 'pP0�✓ `7!Z`JSc�i� _-- �JGµ�Z fi Trant:$ation:020 ham:076 '• ——' h.ek Amount:1O 0e2.o0 a'00 20 2 2e' I' .-%Y 7 . i - ®{IFtrey • - e-- r.+�v.V\•-..f .rv•�W./•Ww.\Y•� /Y1•••LL\•...1•.•...•w...•... y '//.VI..•.Vrr•wY�.1Y1 f •w�yr.l••••w•••....•.,•..W.. ...—Sorter 00 lril.02 Cu, CIUJ Aequance I17 • Operator.BETANCOURT Control 4: 1074243300 70 1- Please remit to: • COMARK CORP. SALES, INC. • P.O. BOX 70212 CHICAGO, ILLINOIS 60673-0: 12 _- B.N. 866766B50 RT Bill To: 361925 rt 'p.•{ P-il •Pk.i��?..! !T ,*.`;.e'n"i "�y�,r:s>.:f-:x; .. ,;.�`I'.!•1.Yi i Fri, tp :' rs:.,,r �. .: „;:::,.�E;sr .,y j• Vii fi•vwH.r• s..,,� •a:i.F;.. �:�,.:.;< ;`.• 'r ,1'>ss,yk rr. ` •/n: y.;r':r'{. ''9l•.f•.i Y: •w>•. t .I'ii'%•, rr.. ;i. Monroe County sooc Invoice Number 92244873 Suite 211 / Core Roth Date 11/18/2002 1200 Truman Avenue P/O Number JB1118 • Key west FL 33040 Sales Order No. 1776408 Payer Number 3 61925 Account Clerk K BARTELLO Ship To: 361925 Sales Rep t a. 2 773 RICHARD RJ SPENCER Monroe County 8000 Page 1 I 1 ' Suite 211 / Ce• Roth Attn: Todd Srickson POtJB111802 1200 Truman Avenue Ray West FL 33040 Conditions Currency USD Terms of payment: 30 Day • Ship Via: FEDERA ., EXPRESS / • . - Material Descriptio'I City Price Ext. Price -- ,firta-1 ik : 6 it.7Z --3.5+ -H 43 83 - a3(o Cy EW22XPE1020 METAFRAME XPE 1.0 STRT SYS 20 2 4995.00 9990.00 1 Subtotal 9,990.00 Tt1 Freight Chg 92.08 Total amount due 10,082.08 &-XtNi v ►r C` :;?u Exhibit C Comark Invoice and Payment Information for Hawk's Cay Resort 10/02/2003 09:09 FAX 3057435215 Hawks Cay it 3p Please remit•to: • • COMARK CORP. SALES, INC. . • ' P.O. BOX 70212 CHICAGO, ILLINOIS 60673-02:.2 B.N. 866766850 RT • • • Bill To: 14 6 7 0 8 . I l "r#>•`> ' _ . = :` , `• • • Hawk:: Cay Re:aort And Marina '+ Invoic; Number 92] 41925 Jess:: Boehm Date 10/ 08/2002 61 Hawke cay Blvd. • • . P/O Number VJEII0C 702 Duck Key FL33050 Packir.g List No. 81 i'12 C 41 • Sales Order No. ' 16 EI71 E.7 Payer Number 14 6 7 0 fl • Ship To: 146708 Account Clerk J DROWN —• — — Sales Rep No. 2773 Hawks Cay Rel;ort And Marira • RICHARD RJ SPENCER Attn:Jesse Boehm • Page 1 •1 1 PO{VJB100.302 • • 61 Hawks Cay Blvd. — . Duck Key FL 33050 . Conditions . . Currency USD Terms of payment: 30 Day; • Ship Via: UNITED 1 . RCEL SERVICE / Ground _^ •Material Description • Qty Price Ext. Pre • • ••.�•' EW22XPE1020 •.METAFRAME X:?E 1.0 STRT BYS 20 1 4993,00 4993.00 Subtotal 4,993.00 Sales Tax 374.48 Ttl Freight Chg 1 .':8. 83 10/42/2003 04:09 FAX 3057435215 — Hawks Cay ril )02 4emt _ _ _ .� =e= ...,_...... 1141771.LuaLr.1S:ilj::V: i•••-re•►::1/Y'4 7.al•eeP1 ..1rOrrri.+a-em BANK I ONE. INNOVATIVE wES a VIDEO II MGM.ILLc 201'i • t„STIRRUP RV WOW 140.AI r.141 Loohb.,.InIa n.tloiL-- aAwntran.eL 11101011M w+a Company c0M,1RIt INC �, 'c n_ t OLTI.. /O, ?LYYl m Lookbok:007C212 of eA� a•../+-' `" 1'• Celle .____._._...I S 5.394, lop Site:% Module : 12 :+ 1 t itl yddpei--y 4� alu/44% OLIARB 11 �... I 1 - 111 ' 9ankoiAmeries. �7W Process:11/25/2002 E °foremen Batch 0:225 Multiples: 1 TreneactIon:044 Item:044 "OR.Tnvntt:p 4 E l2AIl`Z ` heck Amount:5,:198.31 I e00 2019a■ t:t ee'0000 5 396 3 Lee' Survey: wlw�W'Yw..�{.H. W..tWJ.4•.�VT� V•.—.�.-.._ ..-- �..��. i��W.I.. 0000 I..W6160 ado,'Inform tT_ y '-- Sorter:311 Pocket:02 Cut:1(12 Sequence :184 Operator:T1;MITH Control I:311493 283C010 I — — 1 Exhibit D Software Requirements • ,,,,,, r:" '`� I -% BOARD OF COUNTY COMMISSIONERS�~ a OU NTY KEY WESTfM ON ROE 7 Mayor Charles"Sonny"McCoy,District 3 �o 33040 — ;. � - r. Mayor Pro Tam Dixie M.Spehar,District 1 lam)z riu • 5'a,. 4 s.-`!.} .�•,�',, George Neugent,District 2 iii01•1743ji r r rBert Jimenez,District 4 ,a 6...1 y • r Murray E.Nelson,District 5 • To: Department Purchasers From: Cee Roth,Technical Services Date: 8/19/02 Re: Software Requirements . . - • VENDOR VEN# PRODUCT PROD# PRICE PURPOSE These items are necessary for all new computers: SHI 006201 MS Office 269-04652 295.62 Applications MS Client Access Uc c78-00113 70.61 File/Print Sharing OFP,,tfaftX.::00jkii4tr ' 3 " YE � 1W • Back Office 7- ft1 •'.•; tY d.Ir7.4+rt•r;.r�R.'. �a�.e ,t �.i'i a-d.7:: 2.i)r. � • l t,.t If an upgrade to Windows 2000 is needed: SHI 006201 Window Upgrade b23-00308 129.61 Operating System MS Client Access Uc c78-00113 70.61 FiieJPrint Sharing IWVD 008184 XPe 240.00 Back Office Lie If you need to purchase Publisher or Frontpage in addition they will be: SHI 006201 Publisher 164-01879 55.86 Desktop Pub Frontpage 392-01459 74.24 Web design A request to purchase should be filled out for each vendor and faxed to Technical Services @ 5105. We will sign off and forward the request to Purchasing. If you do not receive POs for each vendor within 3 days check with me © ext. 5110. Exhibit E Citrix Xpe Purchases 1---- tbILItit: PO: •t. Prict; 11- Dat* ] Department I: Persoii: Falai Ffirri itiO112 ' Citrix 32204 2 $4,800.0017/24/2002 Growth [Pentamation Yes 72403 102 v, Xpe i __I _A___ ...,Management _use Citrix Ft32604 1 $240.0019/20/2002Vpper Keys Pam Johnson 1 Yes]72984 1-31 IXPO i i 1 rauma ti- i"'-* r(itrix p 232735r $240.1 8/26/20021BOCC Comm Nelson 1 Yes 72984 124 ., 1 1 Pe I ____ 1- 1)C<itrix 232776 F---ii $240.0 8/26/2002 rounty Admin.rviargy 1 Yes i 203739 125 / pe 1 McMennamy I 1 Citrix 232777F-71 $240.00 8/28/2002r Purchasing 1 ! Yes 73705 126', .e I ._ r , __. _ ,. ___ ___ • Citrix 1232864 111 $2,640.00 8/26/20021 Fire Rescue tire Depts & Yes 72984 127 1.../ lie _ J i_ Pete Lubert --! Citrix 232918 2 $480.00 9/3/2002 Emergency !Marlisa I Yes 73705 In Xpe Management i Clohesy/Irene 1 1 _1 oner . il --,.----.--,- itrix 32919 r $240.0018/30/2002 Public Works Ron Foreman 1 YesI7_3364 128 Pe MCDC _________ ____ Citrix r2968.I 10 $2,400.001 9/3/2002 Social 1 Yes 73364 123 Jr . Xpe Services * _ . I , Citrix #32998rI $240.00 9,8,2002rommunity Jim Malloch 1 Yes 74808 149-40 (Xpe _ !Services i lost) ____ Citrix 3302117 $6,240.00 9/9/2002 Library 11 Yel 203843 133 •,-1 : ie I j ___J Citrix I p.33074 ni $240.01 9/10/2002 rransportationtpril Cine 1 Yes 73705 137,,, ie I .... itrix 233110 11 $240.001 9/9/2002 rleet fROn Cherry 1 Yes 73364 136 . I • : ee . itrix F-71233141pi $2,880.01 „„20021rDc !KW office upg i Yes 73705 135N/ pe Citrix ! 33407 2 $480.001 /30/200216-o-Admin Patty . Yes 74808 1148 N./. pe I Erickson/Debbie! 1 1 Frederick 1 ! nin° 171714$21,840.0011 11— .1— !I Nolt _Jl - , , Exhibit F IWVD Invoice for Growth Management for Citrix License Purchase Innovative Web & Video Design, LLC 111 Stirrup Key Wood Rd. Invoice Apt. 2B2 DATE ESTIMATE# Marathon, Florida 33050 8/9/02 102 BILL TO Monroe County BOCC 1200 Truman Ave Suite 211 Key West, Florida 33040 • • ; 1$��_'r F Ian � . O n .�r • .. AMpsurw Citrix Base Citrix Base License Packs-XPe 0 License Packs- 2 4,80.00 9,600.00 0 XP . • -(r)ji frr IkAirutfr .00t 0(4.4/„(61 Subtotal \ if/ 9,600.00 0%Tax dii 1�1.1��i,, v t.— Total •,600.00 Exhibit G - BellSouth Business Services Master Agreement and 9/23/02 and 11/19/02 Order Summaries V,JI YJ YVVU1nv,1, li • ,Y •••• r.r ,urrr �. ....� .vi •.. . ..• . . vvr' WAIF —p p 1 Mx uate/! ttac bcr-cu-auuclrnii Je .2u .• r... 0-2a-02: 2:seeM: ; ' e 2/ 2 — O BELLSOUTH BellSouth® Business Services Master Agreement This BellSouth'Business Services Master Agreement(this"Cantracr)Is made and entered Into as of ,200_,by and between the undersigned BellSouth Company('BellSouth'),located at 2180 Lake Boulevard,71"Floor,Atlanta,Georgia 30319, Attention;John Stuhronbeig(the'BellSouth Contact"):and the undersigned company Monroe County BOCC(hereinafter,'Customer') located at 1200 Truman Avenue, Key West, FL 33040,Mandan:Todd Erickson(the'Customer Cantact). TERMS AND CONDITIONS The terms and conditions applicable to this Contract shall be those stated within this Contract or Its Attachment(s). SERVICES AND PRICE 'Services' as used herein shell be those Internet or managed business services ordered by Customer from BellSouth under service orders ('Orders') submitted by Customer and accepted by BellSouth pursuant to this Contract. If this Contract provides for specific pricing. Including any applicable discount schedules, for any such Services, such pricing or discounts shall be set forth In the Attachments) to this Contract. In any event. the epecilic pricing applicable to any particular Services shall be as set forth in the applicable.Order(a) far such Services, which are Intended to be consistent with any pricing or discount schedules attached hereto unless agreed between the parties with respect to a particular Order. TERMS OF PAYMENT The terme of payment for the Services are as set forth in the Terms and Conditions or in the applicable Order(s). NOTICES All notices under Ihie Contract will be in writing and will be deemed to have been duly given If delivered personally or by courier service, faxed or mailed by registered or certified mail, return receipt requested, postage prepaid. to the parties at the addresses set forth heroin. All notices under this Contract that are addressed as provided herein(a) If delivered personally or by courier service,will be deemed given upon delivery,(b)If delivered by facsimile.wil be seemed given when confirmed and(c)if delivered by certified mail In the manner described above,will be deemed given on the fifth(5 )business day after the day it la deposited In a regular depository of the United Stales mall. Either party may change its address or respective contact for notification purposes by giving notice to the other of the new address or designee and the date upon which such change will become effective. INCORPORATION BY REFERENCE The Terms end Conditions and all Attachments hereto end thereto,are Integral pans of this Contract end are fully Incorporated heroin by this reference. ENTIRE AGREEMENT This Contract,and any Order,placed hereunder.shall constitute the entire agreement between BellSouth end the Customer relating to this Contract and the Services performed hereunder and may not be modified or emended other than by a written instrument executed by both pantos. IN WITNESS WHEREOF. BellSouth and Customer have caused this Contract to ba executed and delivered by their duly authorized representatives,effective upon execution by Customer and accnotance by BellSouth. Customer. Monroe County BOCC Accepted by BellSouth Business Systems on behalf of BellSouth? munipallons,Inc.or sliSouth MNS,Inc. By: � - ,. / 8y: U1AC Name. / u Name: R O St.nnct•riG ? HarrAct f f 'ant or Type (Front o►Type) Title: Ir; � reef/7)r�' o6tn, .ar Sa lee �4�ay e• Date: aQ Dale: 0112.0 1,0//e Rev.412002 Customer I dial -- Dale: `I�)1 c_.) 1 of 10 • @ BELLSOUTH BeIlSouth® Business Services Master Agreement This BellSouth Business Services Mantel-Agreement(this"Contract')Is made and entered into as of ,200_,by and between the undersigned BellSouth Company CBoIlSouthl,located at 2180 Lake Boulevard,r Floor,Atlanta,Georgia 30319, Attention:John Stuhrenberg(the'BellSouth Contact");and the undersigned company JNonroe County BOCC(hereinafter,'Customer') located at 1200 Truman Avenue,Kov West.FL 33040,Attention:Todd Erickson(the'Customer Contact'). TERMS AND CONDITIONS The terms and conditions applicable to this Contract shall be those stated within this Contract or its Attachment(s). SERVICES AND PRICE "Services" as used herein shall bo those Internet or managed business services ordered by Customer from BellSoulh under service orders ('Orders") submitted by Customer and accepted by BellSouth pursuant to this Contract. If this Contract provides for specific pricing, including any applicable discount schedules, for any such Services, such pricing or discounts shall be set forth In the Attachment(s) to this Contract. In any event, the specific pricing applicable to any particular Services shall be as set forth in the applicable Order(s) for such Services, which are Intended to be consistent with any pricing or discount schedules attached hereto unless agreed between the parties with respect to a particular Order. — TERMS OF PAYMENT The terms of payment for the Services are as set forth in Iho Terms and Conditions or in the applicable Order(s). NOTICES All notices under this Contract will be in writing and will be deemed to have been duly given If delivered personally or by courier service, faxed or mailed by registered or certified mail, return receipt requested, postage prepaid, to the parties at the addresses set forth herein. All notices under this Contract that are addressed as provided herein (a) If delivered personally or by courier service,will be deemed given upon delivery, (b) If delivered by facsimile,will be deemed given when confirmed and (c) if delivered by certified mail In the manner described above,will be deemed given on the fifth(5'") business day after the day It Is deposited in a regular depository of the United Slates mall. Either party may change its address or respective contact for notification purposes by giving notice to the other of the now address or designee and the date upon which such change will become effective. INCORPORATION BY REFERENCE The Terms and Conditions and all Attachments hereto and thereto,are Integral parts of this Contract and are fully Incorporated herein by this reference. ENTIRE AGREEMENT This Contract,and any Orders placed hereunder,shall constitute the entire agreement between BellSouth and the Customer relating to this Contract and the Services performed hereunder and may not be modified or amended other than by a written Instrument executed by both parties. IN WITNESS WHEREOF, BellSouth and Customer have caused this Contract to be executed and delivered by their duly authorized representatives,effective upon execution by Customer and acceptance by BellSouth. Customer. Monroe County BOCC Accepted by BellSouth Business Systeme on behalf of BellSouth Telecommunications,Inc.or BellSouth MNS.Inc. By: By: Name: Name: (Print or Type) (Prinr or Typo) Title: Title: Date: Date: Rev.412002 Customer 1phIais7 L Date: e1 r?'{tar- 1 of 10 Utrl OJ 11Uuritiovr/ 11i9J uuuuVVVIII YVVIIIIIVV ‘I WI) VW, /V/ IVJ/ , 1VV11ULV • © BEL LSOUTH 6ollSouth®Business Services Terms and Conditions These terms and conditions(Terms"govern the provision by BellSouth Telecommunications Inc or BellSouth MNS,Inc.('BellSouth"end the use by the customer ('Customer) of the BellSouth$ Business Services family of Inlemel-related and managed services, including but not limited to, ■A dedicated Internet access services,web hosting,mansged equipment services,managed network services,managed security services,and eBusiness Center services, including any BellSouth-provldod equipment and/or software (sometimes referred it)Separately herein as the "Equipment"and the "Software", respectively) located on Customer's premises or et Customers locations) for use In connection with such services and Including any network consulting, design, monitoring. management, maintenance or other services that may be provided in connection with Cuslomer-aupplied networks or equipment as port of the BellSouth Business t Services. BellSouth Business Services, Including any Equipment and Software used In conjunction therewith, ere referred to collectively herein as the'Services'. References in these Terms to"Customer'Include Individuals authorized by Customer to use the Services,except where the context dearly requires otherwise.By ordering and using the Services or any portion thereof,Customer agrees us follows: 1. The Services. The Services consist of various forms of dial-up and/or dedicated Internet enticed routing, terminal server services, Internet access,gateway,network consulting,design,monitoring,management,maintenance.Web site design,development and/or hosting,managed equipment services, managed network services, managed security services, and eBusiness Center services and other Internet or Intranet-related services designated by BellSouth from lime to time as Included in Its BellSouth Business Services offerings.The Services may also Involve the use of Equipment ond/or Software located at one or more Customer sites,and/or the location of certain Customer equipment In space provided by BellSouth. These services and their features or operation,as well as the specific types and quantities of the Services purchased or obtainable by Customer,will be described In further detalt in the ordering documenl(s)used by Customer to place orders for the Services,Including without limitation any service order! ('Orders')to be submitted by Customer and accepted by BellSouth and the related Service Descriptions issued by BellSouth which are attached to or referenced In such Orders.Additional features and services may be made available as announced by and under terms and conditions established by BellSouth, including without limitation any changes to these Terms made by BellSouth from time to lime hereafter and provided to Customer In writing. The Services and all features or aspects(hereof,whether described herein or In any such additional materials,shell continue to be governed by and provided subject to these Terms unless or except to the extent that a separate agreement has been signed by Customer and BellSouth specifically relating to such additional features or services which expressly makes exception to those Terms. 2. Term. Customer's agreement for the use of the Services will be In effect from the dale provided for in Customer's Order is accepted by BellSouth as provided below,and, unless terminated earlier as set forth herein,shall continue thereafter for the minimum tern(if any)set faith In such Order. 3. Rates and Charges.The rates end charges payable by Customer for the Services shall be as sot forth in the Customers Order(s)which i hove been accepted by BellSouth as provided heroin,and shall be computed in accordance with BellSouth's rate schedules. Rates and charges are sub(ect to change by BellSouth on thirty(30)days notice.except that If Customer has elected a minimum term for the Services in its Order then the rates - for the Services in effect al the time of the Order shall remain In effect for the duration of such minimum term(unless otherwise provided In such Order). If no minimum term Is specified in such Order,or If the Services continue beyond such minimum term without execution by both parties of an extension - to such Order, the Services will Do provided on month-to-month basis al the then prevailing month-to-month rates for the Services until either party gives the other at least thirty (30) days written notice of termination of the Services. Customer wilt be Invoiced monthly for usage of the Services. Payment must be received by BellSouth by the date staled an the Invoice. Customer will pay or reimburse BellSouth for any and all sales and use taxes,duties,or levies Imposed by any authority,government,or government agency(other than taxes levied on BelSouth's not Income)In connection with Customer's usage of Ihe Services.If any payment due hereunder is not made by the date slated on the invoice,any late paymenUnteresi charges will be computed in accordance with standard telephone company baling practices and procedures using those rates applicable to fariffed local service If the charges for the Services are bllled on Customer's local telephone bill. If such billing option is available and Customer has chosen to have the Services billed to Customer's credit card, the terms of the applicable credit card agreement will apply and any late paymentlinterest charges will bo computed In accordance with Customer's credit card agreement. Otherwise, late charges of one and ono-half percent (1 125) par month, or the highest amount permitted by applicable law,whichever is less,shall be due and payable with respect to such payment. 4. Equipment If provision of the Services requires the placement by BellSouth of Equipment at Customer's location, Customer shall provide (or make arrangements with the landlord or other appropriate party to provide)adequate space and a r seoneble installation and operating environment far such Equipment, including electrical power, at no charge to BellSouth. Customer shalt provide access to such Equipment by BellSouth and its representatives for the purpose of repairing,replacing,maintaining or otherwise using or servicing the Equipment and for removing the Equipment upon termination of the Services.All such Equipment shah remain the property of BellSouth or Its suppliers,end no right.title or Interest In the Equipment shall ' pass to Customer. Customer agrees that the Equipment Is and shall remain personal property even though it may become attached to really.Customer shall not and shell not attempt to sell, assign,sublet or otherwise encumber or claim or allow a lien upon or against the Equipment by any action of Customer or any party claiming by,through or under Customer. Also,Customer shall not move the Equipment from Its place of Installation or make or permit any other party to make any repairs or alterations to any Equipment without BellSouth's prior written consent. Customer shall be responsible for the cost of repairing or replacing any Equipment lost,stolen or damaged while at Customer's premises, and for returning(Le.,permiWng BellSouth to recover possession on all Equipment In the same condition as when installed at Customer's promises (reasonable wear and tear excepted)upon any termination of the Services for any reason. I S. Customer-Supplied Networks and/or Equipment. (a) The Services may Include certain consulting,network design,monitoring,management,maintenance or other similar functions or services relating to communications local network transport facilities, routing and terminating equipment or other elements of Customer's network that may be obtained separately from the Services by Customer from other BellSouth companies or product offerings or from third parties(celloctIvaly,'Customer's Network").Customer shall be responsible for obtaining all necessary equipment or other portions of Customer's Network that are not included as part of the Services,and for all costs and charges relating thereto,and for selecting,arranging and paying for ell interLATA communications services deemed necessary or desirable by Customer for the operation of or connection with Customer's Network. (b) So long as Customer Is not in default hereunder,Customer may request and BellSouth may agree to add additional items of equipment or other expansions of Customer's Network to any existing Orders for these Services. Customer may from time to time request additional Services from BellSouth in connection with the activities described In an applicable Order. All changes to the scope of the Services to be performed by BellSouth hereunder must be requested In writing and require mutual agreement. Evaluation and/or Implementation of requested changes may result In an 412002 Customer Ini Dater ill? e- 2of11 vul uJ uVVuhPIvllr lit Iv ••• rvr•,IYYY 1• ,u•1 WV/ IV/ I WV/ • • wt. /r Vlv ® IBELLSOU77-1 BellSouth®Business Services Terms and Conditions adjustment to the costs or schedule for delivery of the Services or other terms of the Order, Changes to the scope of the Services will be Incorporated Into an Order through written amendment. (c)Be(tSoulh will,if set forth in the applicable Order,assist Customer In the coordination of the implementation and Installation of equipment or services for use with Customer's Network. BellSouth will make reasonable efforts to ensure that all relevant vendors or service providers meet the scheduled dates far Installation,but BellSouth shall not be liable for any delays. (d) If Customer requests and BellSouth'agrees to perform equipment maintenance services in an applicable Order(for equipment not provided by BellSouth as part of the Services),BellSouth shall have the right to inspect and make such repairs to such equipment as may be necessary to place It In good working order and acceptable condition for Inclusion In BellSouth's equipment maintenance service, and may charge Customer for any such work required at BellSoulh's standard rates then In effect Customer agrees to provide a suitable Insutianon environment, access and power and telecommunications connections far the equipmenL If problems with any equipment covered by maintenance Services hereunder occur during the term of the applicable Order and Customer reports thorn to BellSouth In accordance with BellSouth's standard procedures, BellSouth will provide commercially reasonable maintenance and repair service to restore the equipment to good working order (or, at BellSouth's option, replace the equipment) within a ressonable time. Replacement parts or equipment may be new or usedlrefurbished but reasonably consistent with the age and condition of Iho equipment being serviced. Any equipment or pads thereof replaced by BellSouth In rho performance of its maintenance service hereunder shall become the properly of BellSouth, BellSouth may also perform such preventive maintenance as BellSouth deems reasonably ' noceesary. If the repair or maintenance was the result of normal wear and fear or a defect in malerials or workmanship only,there will be no additional charge to Customer for this maintenance and repair service (over and above the charges for maintenance service set forth In the applicable Order). Customer will be charged, at BellSouth's than prevailing rates, for the repair or replacement of any equipment, Including parts and labor and any Increase in service lime required, resulting from any other cause,Including but not limited to misuse or negligent operation of the equipment,accident, unauthorized repairs or modifications,failure to maintain a proper operating environment,relocation or alteration of the equipment by anyone other than BellSouth or BellSouth's designated agents,etc. Unless BellSouth is providing space for Customer's equipment as part of the Services,Customer must provide a suitable operating environment for the equipment and provide BellSouth or BellSouth's contractors with appropriate access to perform such maintenance services. All reports or problems and requests for equipment maintenance must be reported to BellSouth at such telephone number or e- mail address as BellSouth may notWy Customer in writing. Customer agrees not to move any equipment covered by maintenance services hereunder from its place of Installation without BellSoulh's prior w iden consenL to) BellSouth shall provide its Services in accordance with the same first dans standards appied by BellSouth to its stmaar projects far Its affiliated companies and other clients,In a good faith effort to support Customer In developing,implementing and/or managing Customer's Network or its other intended system(s), network designs or other projects or services as described in applicable Orders ("Customers Project'). However, as the successful Implementation or operation of Customers Network or Project ultimately depends upon many factors beyond the control of BellSouth (Including the efforts and performance of Customer and other vendors selected by Customer),BellSouth does not warrant the completion or success of such Project nor, except as provided In the preceding sentence, make any other warranty as to the Services. BellSouth shall have no liability or obligation to Customer for any defect or failure or such Network or Project,beyond the Services downtime credits(if any)set forth In these Terms or in the applicable service descriptions or Orders. 6. Software and Gateway Services. • (a) The Services may include dedicated or dial-up Internet Protocol connectivity to BellSouth's local Internet networks and(through applicable GSP service as described elsewhere herein)to the global Internet,as well as access or connectivity to any of the information sources or services which may be provided by BellSouth or be available from other service providers participating in,connected to or accessible through BellSouth's Services or the global Internet.Some of these additional services may be provided without charge to users of BellSouth's Services, but separate charges may be applicable to some of These other services. These charges may appear on your bill from BellSouth, or they may be billed to you separately by the providers of such services.Some other providers may also have additional registration or eligibility requirements in order to use their services. (b) Use by Customer and any Individual authorized users of Customer of BellSouth's Inlemel Services and any associated browser or other Software provided by BellSouth In connection therewith shall be subject to BellSouth's standard terms and conditions for such Internet service as well as the applicable software license terms which are provided with such Software. 7. Things Not Included In the Services. The Services may include transport components which are Incorporated by BellSouth end sold to Customer as part of the Services,as will be reflected on Customers Orders)for the Services. However,Customer may Instead or in addition purchase similar components as tariffed transport services from BeilSouth's (or Its affiliates) regulated telephone operations, in which event any regulated -- transport network services purchased by Customer to connect to the Services shod be provided pursuant to appii©bfe tariffs and are not pail of the Services nor subject to these Terms. In addition, because of current legal restrictions, BellSouth's Services includes direct connectivity only to addresses, Information sources or service providers within specified calling areas known as LATAs.In order to connect to Internet-based services or other parties,networks or sites located outside of the local LATA(Including the world-wide internal)through BellSouth's Services,Customer will need to obtain interLATA service(including global Internal service where desired)from a Global Service Provider("GSP")or other party of Customer's choice who Is connected to BellSouth's Services. Information about Which GSPs are connected to the Services from time to time may be obtained an-line on the Services or by contacting BellSouth.Customer is responsible for selecting such a provider and for paying all applicable charges for such InterLATA - service, as well as all charges for any purchases made through the Services and any charges incurred while using any supplemental networks or services other than the Services. BellSouth will facilitate the process of registering Customer's account with the GSP or other available provider of Customer's choice, and BellSouth may Include that providers charges on Customer's bill from BellSouth. Any computer system, database access, Internet connection or other services which may be provided or made available to Customer by its GSP or any other party are the sole responsibility of and at the sole discretion of such party, and are not included in or a part of BellSouth's Services. BellSouth makes no selection, endorsement or recommendation with respect to any GSP or other InlerLATA long distance service provider, global Internet access provider or other aspect of any service provided by the GSP or other party, and BellSouth shall have no responsibility, obligation or liability of any nature with respect thereto.The reliability, availability and performance of resources accessed through the Internet or other services connected to BellSouth's Services are beyond ' BellSouth's control end are not in any way warranted or supported by BellSouth. Customer adcnowledges that safeguards relative to copyright, ownership,decency.reliability and integrity of content may be entirely lacking with respect to the Internet or other services or content accessible through BellSouth's Services. Customer may also elect to obtain network design, Web Cite development or promotion, or other services from participants In dr2002 Customerpar / •. Date: 3 -F 3of1t �� " ��► �•� 01v1 GJ LUUL‘olU11) 11 .4J uuuuuvUllt UUVIIItIUU ® BELL SOUTIY BellSouth Business Services Terms and Conditions BellSouth's various Marketing Programs or from other third putties. Customer acknowledges that all such additional or related services are being provided by third parties and nal by BellSouth, and are not part of BellSouth's Services hereunder. While Customer may take advantage of any applicable remedy mechanisms that may be available under BellSouth's Marketing Programs to assist Customer in dealing with participating vendors for { such services,Customer assumes all risk and liability of its use of the Internet or other services or content accessible through BellSouth's Services or used by Customer In connection therewith,Including Custamor6 continuous conlplionce with these Terms. a. Customer's Responsibilities. (a) As between Customer and BellSouth, Customer is responsible for. (I)assuring that its authorized users comply with the previsions of these Terms and that unauthorized persons do not gain access to or use the Services through user names,passwords,or other identifiers assigned to Customer pursuant to those Terms; (ii)providing any equipment and software which may be necessary for the use of the Services by Customer(in addition to any Equipment and Software which may be placed at Customer's location(s)or otherwise provided or used by BellSouth for Its provision of the Services); (Ili)timely payment of all charges for usage of the Services applicable to its account whether or not by authorized users or for authorized ' purposes;(iv)providing space and related activities with respect to any Equipment located al Customer sites as described below;and(V)performing its other obligations under these Terms.Customer shall not use the Services In any way which would be or would assist any third party to be In violation of any law, those Terms or any Acceptable Use Policy applicable to the Services. Customer shall not transmit or publish on or over the Services any Information, software or other content which violates or Infringes upon the rights of any others or use the facUties and capabilities of the Services to ' conduct any business or activity or solicit the performance of any activity which Is prohibited by law.Customer shall comply with all applicable laws,rules end regulations In connection with the Services. (b)Customer shall provide,at no cost to BellSouth,such access,space,facilities,and other services at Customers location as are reasonably , requested by BellSouth for purposes of facilitating BellSouth's provision of Services to Customer. (e) Ir Customer Is obtaining Web Site or Application Hosting or related Services hereunder, Customer shall provide all relevant Customer- specific or other graphics, text and other Information or other content desired by Customer to be incorporated into Customers Web Silo or hosted application In a timely manner,and such other related Infannalon or documontallon as is reasonably requested by BellSouth for purposes of facilitating BellSouth'&provision of Services to Customer. (d) Delay or failure by Customer to fulfill its responsibilities may result In an adjustment to the costs or the schedule for delivery of the Services,and shall release BellSouth from its obligations hereunder to the extent that BellSouth Is adversely affected by such Customer delay or failure. 9. BellSouth's Responsibilities. BellSouth agrees to the following responsibilities(subject to the limitations set forth In these Terms): (a) BellSouth will operate the Services in accordance with Its standard policies and procedures and will use commercially reasonable efforts to make the Services available to Customer as described In these Terms.BellSouth will give Customer reasonable notice of scheduled downtimes for maintenance. (b) BellSouth will notify Customer of any changes In the In the features of the Services or In BellSouth's policies In the operation of the Services that are reasonably expected to materially affect Customer's use thereof. (c) BellSouth will use a reasonable degree of care to maintain the secrecy of any of Customer's passwords which aro in Its possession,but - BellSouth shall not be liable for any unauthorized access to or use of the Services or Customer's Network by third parties. (d) Upon notification from Customer of any interruption or malfunction in the Services or a need for reconfiguration of Customers Services, ' BellSouth will use reasonable efforts to cause the same to be repaired or reconfigured.BellSouth shall have the right to access Customer's Services for the purpose of performing such repairs or reconfiguration or confirming Customer's compliance with Its obligations with respect to the Services. 10. Limitation of Warranties and Liability;Disclaimer of Warranties.CUSTOMER EXPRESSLY AGREES THAT USE OF THE SERVICE IS AT CUSTOMER'S SOLE RISK.NEITHER BELLSOUTH NOR ANY OF ITS UNDERLYING SERVICE PROVIDERS.INFORMATION PROVIDERS, LICENSORS, EMPLOYEES, OR AGENTS WARRANT THAT THE SERVICE WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES BELLSOUTH OR ANY OF ITS UNDERLYING SERVICE PROVIDERS, INFORMATION PROVIDERS, LICENSORS, EMPLOYEES, OR AGENTS MAKE ANY WARRANTY AS TO THE RESULTS TO BE OBTAINED FROM USE OF THE SERVICE THE SERVICE IS PROVIDED ON AN"AS IS", "AS AVAILABLE" BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. INCLUDING BUT NOT LIMITED TO WARRANTIES OF TiTLE OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE. OTHER THAN THOSE WARRANTIES(IF ANY)WHICH ARE IMPUED BY AND INCAPABLE OF EXCLUSION,RESTRICTION,OR MODIFICATION UNDER THE LAWS APPLICABLE TO THIS SERVICE AGREEMENT, ALL SUCH WARRANTIES BEING EXPRESSLY DISCLAIMED. NEITHER BELLSOUTH NOR ANY OF ITS UNDERLYING SERVICE PROVIDERS, INFORMATION PROVIDERS. LICENSORS, EMPLOYEES, OR AGENTS SHALL HAVE ANY LIABILITY FOR INCIDENTAL CONSEQUENTIAL,INDIRECT OR SPECIAL DAMAGES SUFFERED BY CUSTOMER OR ANY OTHER PARTY AS A RESULT OF THE OPERATION OR MALFUNCTION OF THE SERVICE, REGARDLESS OF WHETHER OR NOT SUCH PARTIES HAVE BEEN ADVISED OF THE POSSIBIUTY OF SUCH DAMAGES. CUSTOMER EXPRESSLY ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION SHALL ALSO APPLY TO ALL CONTENT OR OTHER SERVICES AVAILABLE THROUGH THE SERVICE. CUSTOMER AGREES THAT CUSTOMER WILL NOT IN ANY WAY HOLD BELLSOUTH RESPONSIBLE FOR ANY SELECTION OR RETENTION OF,OR THE ACTS OR OMISSIONS OF,THIRD PARTIES IN CONNECTION WITH THE SERVICE(INCLUDING THOSE WITH WHOM BELLSOUTH MAY CONTRACT TO OPERATE VARIOUS AREAS ON THE SERVICE). 11. Remedies of Customer. Customer's sole remedy for any failure or non-performance of the Services (Including any associated Equipment, Software or other materials supplied In connection with the Services)shall be (I)for BellSouth to use commercially reasonable efforts to effectuate an adjustment or repair of the Services and, in the event such failure or non-performance results In Service downtime which exceeds the period of lime specified In the applicable service level agreement portion(if any)of any applicable Order or Service Description,to receive a refund or credit of or against any charges otherwise payable for the Services for the period of service downtime as provided for In the applicable service level agreement portion (if any) of any applicable Order or Service Description, or(II)II such failure or nonperformance results In Service downtime or 42002 Customer I 'al Dale: cf3uJ Iaf11 I � VYP YJ {I UV V!PIV 11/. 1 L .0 vv.,I ,.YVV %. •.oI VV./ /WI • Vv/ VU Ir 9.111/ ® BELLSQUT1-1 BellSouth®Business Services Tors and Conditions degradation so substantial as to render the Service essentially unavailable to or Unusable by Customer for normal use,to terminate the Sorvlces for default by BellSouth In the manner provided in these Tonna. Unless specified to the contrary In any applicable service level agreement portion of any - applicable Order or Serulce Description,the maximum credit for service downtime or other failure shall not exceed the total monthly bill to the Customer for the Services for the month in which such downtime or failure occurs. 12. Disclaimer of Uablitty. BellSouth shall net be responsible for the use made of the Services by Customer,Its authorized users,or any other customer or third party.Without limiting the generality of the foregoing,BellSouth shall not be liable to Customer or any of Customers users for any lost profits or other consequential damages,even If BellSouth has been advised of the possibility of such damages;any claim or other action against Customer by any third party(except as set forth In the section below on Infringement);any ad or omission of any other entity furnishing products and ' services which are used by Customer in connection with the Services or for faaure of any products or services provided by Customer,or any damages or losses caused by the fault or negligence of Customer or Customer's failure to perform Customers responsibilities. 1a. Limitation of Liability.In the event that a court should hold that the limitations of liabilities or remedies available as sat forth In these Terms,or any portions thereof,aro unenforceable for any reason,or that any of Customers remedies under these Terms fall of their essential purpose, Customer expressly agrees that under no circumstances shall BellSouth's total liability to Customer or any party claiming by.through or under Customer for any cause whatsoever,and regardless of the form of action,whether In contract or In tort,Including negligence,In the aggregate.exceed the amount of charges paid by Customer for use of the Services during tho twelve-month period preceding the date such claim first arose, 14. Indomnlficatlon. • (a) if promptly notified in writing of any action brought against Customer based on a Balm that the Services Infringe a United States patent. copyright,trademark,or other intellectual properly right,BellSouth will defend that action at Its expense and will pay any and all fees,costs or damages that may be finally awarded in that action andror a settlement resulting from it(provided that Customer shall permit BellSouth to control the defense of such action and shall not make any compromise,admission of liability or settlement or take any other action impairing the defense of such claim without BellSouth's prior written approval). If a final injunction Is obtained against Customer prohibiting usage of the Services by reason of infringement of a United Stales patent,copyright,trademark,or other intellectual property right,BellSouth will,at Its option, either: (1)at ib expense procure the right for Customer to continue using the Services or(2)direct Customer to cease using the Services.In the latter event.the Services shall terminate immediately. (b) Customer will indemnify and save harmless BellSouth from and against all foss, liability,damage, and expense.including ail reasonable counsel foes,due to claims for infringement of patents,copyright,trademark,or other Intellectual properly rights,or duo to any other claims or causes of - action by third parties of any nature whatsoever,arising from the use In connection with the Services of equipment,software or Information not provided by BellSouth,or otherwise relating to or arising out of Customers use or the Services, 15. Force Majeure. BellSouth shall not be responsible for any delay or failure In delivery or performance of any of its duties hereunder due to ads of God, acts or omissions of any regulated telephone network or any other occurrence commonly known as form mejeure, including war, riots, embargoes,strikes,or other concerted acts of workers(whether of BellSouth or others),casualties or accidents, or any other causes or circumstances whether of a similar or dissimilar nature to the foregoing, which prevent or hinder the delivery of the Services. BellSouth may cancel or delay performance hereunder for so long as such porfamience Is delayed by such occurrence or occurrences, and In such event BellSouth Aso have no liability to Customer. 16. Torminatton and Default. (a) BellSouth may, at its sole discretion, terminate any Customer Order and discontinue Customer's access to and use of the Services.if: (i)Customer fails to pay any amount within 10 days after written notice that the same Is delinquent' or (il)Customer broaches any of the terns, conditions, obligations, or representations contained In these Terms; or(Ili)Customer becomes the subject of a voluntary or involuntary bankruptcy, Insolvency,reorganization,or liquidation proceeding,makes on assignment for the benefit of creditors.or admits In writing Its inability re pay debts when __ due, or(iv) Customer's equipment or use of the Services Interferes with the Services or any other user. In the event of a default by Customer as specified In this section,BellSouth shall also be authorized to return all payments made hereunder and to recover the full unpaid balance of the charges __ applicable to the remainder of the than current minimum term of Customers Order far the Services. In addition,If BellSouth reasonably determines that the conlinuation of the Services has become Impractical or unfeasible for any technical,legal,regulatory or other reason,BellSouth may terminate the Services at any time.BellSouth will,In such event,provide Customer wllh at least thirty(30)days prior notice of such termination If reasonably practical (b) If Customer has elected a minimum term for the Services and then cancels Its Services or any portion thereof(or has its Services or any - portion thereof terminated for default as provided above)prior to the expiration of such minimum term,Customer shall be obligated to pay BellSouth a termination charge equal to the amount(If any)specified In the applicable Order; otherwise the termination charge shall be equal to 100%of the total monthly charges (other than variable usage charges) which would have become due for the remainder of the scheduled minimum rem If such cancellation had not occurred. Such termination charge shall be paid to BellSouth within thirty(30)days alter such cancellation by Customer. (c) if BellSouth breaches any of those Terms and fails to cure such breach within thlny (30) days after written notice of such breach, Customer may (as Its sale remedy except for any credits that may be payable for downtime as provided elsewhere herein)terminate its Services by written notice to BellSouth,without obligation for any early termination charges otherwise payable hereunder. - 4/2002 Customer Inliats��'' Dale: �r id 5 of 11 vul L!J LIUULrtoIVe/ It 'll uuuuvvvan uvv.,luvv �• ••••, --• •-• --• ---, �.- • ®BEiLS®UThf . BoliSouth Business Servlcos Terms and Conditions 17. Use of Materials,Marks and Infonnotlon. (a) Customer may use, copy and distribute the materials found on the Services for Internal, noncommercial, informational purposes only. Except as authorized In this paragraph, Customer Is not being granted a license under any copyright,trademark,patent or other Intellectual property right In the material or the products,services,processes or technology described therein.All such rights are retained by BellSouth, Its affiliates and/or any third party owner of such rights.Customer shall have no ownership or property rights in the Services or In any documentation provided in cannecdon with the Services.Customer may make copies or such documentation solely for use in Connection with Its authorized use of the Services,and all such Copies shall include all copyright.trademark and other proprietary notices appearing in the original documentation.Upon the termination of the Services to Customer,Customershali return al copies of the documentation to BellSouth or certify destruction of such documentation. (b) The BellSouth company names and logos and all related product and service names, design marks and slogans are the property of BellSouth or its affricates. Customer is not authorized to and shall not use any BellSouth mama or murk In any advertising, publicity or In any other commercial Manner without the prior written consent of BellSouth. (c) Any feedback, data, answers. questions, comments, suggestions, Ideas or the like which Customer sends la BellSouth relating to the Services and which have not been Identified as confidential will be treated as being nonconridentlal and nonproprietary.BellSouth assumes no obligation to protect such Information from disclosure and will be free to reproduce,use, and distribute the Infomlalcon to others without restriction.BellSouth will also he free to use any ideas,concepts,know-how or techniques contained In such information for any purpose whatsoever Including but not limited to developing, manufacturing and marketing products and services Incorporating such Information. BellSouth may also use Customer's status as a subscriber to the Services for the purpose of marketing to Customer other BellSouth products and services. (d) All product and service marks contained an or associated with the Services that are not BellSouth marks are the trademarks of their respective owners. References to any names, marks, products or services of third parties or hypertext links to Ihtrd party sties or information do not necessarily constitute or Imply BellSouth's endorsement,sponsorship or recommendation of the third party,information,product or service. 16. Service Level Agreement for Certain Dedicated Internet Access Customers. The following Service Level Agreement rSLA)Is made by BellSouth end UUNET Technologies,Inc.("GSM,each with regard to its respective service, to customers who have ordered any of the following BeliSouth.net Dedicated Internet Access Services from BellSouth,and the related Global Service Provider(GSP)service from UUNET,on or after the Effective Dale set forth above, for a minimum service term of one year or greaten Asynchronous Transfer Mode ('ATM'), Frame Relay (excluding customers with sore committed information rale) , Private Line, or Frame Relay NxT1 service (collectively,BellSouth's services and the GSP's services are referred to herein as the'Services'). Service Levels 1. General. BellSouth and the GSP intend to provide their respective services such that the combination of the Services will perform in a manner consistent with the objectives set forth In this document. If either BellSouth or the GSP fail to perform their respective services such that any of the following SLAB are notmot,the solo obligation of BellSouth and the GSP and the Customer's sole remedies shall be for BellSouth and the GSP to use commercially reasonable efforts to effectuate a repair of the Services and for BellSouth or the GSP(whichever was responsible for such StA being missed)to provide the credits.If any,specified below. As billing agent for the GSP,BellSouth will administer any aedils due for any such missed SLAs, such that the Customer will receive the full credit due(if any)whether it was BellSouth or the GSP which was responsible for such SLA being missed. 2. Network Availability. (a)'Network Availability'is the percentage of total minutes during a calendar month that the Services are available to the Customer.Network Availability is calculated as follows: Network Availability= ['Minutes inn manthl-(Total outage minutes)] (Minutes In a month) The Services shall be deemed to be'unavailable'whenever an outage Is recorded on a BelSouth trouble ticket classified es-major or'mincer by BellSouth's Network Operations Center which results In Customer not having the ability to transmit or receive packets by means of the Services,and 'Total Outage Minutes'shall be deemed to be the length of time during which the Services are unavailable to the Customer,as reflected on such trouble tickets. Total outage minutes'shall not Include any outages(I)occurring during scheduled maintenance activities;(II)attributable to any act or omission of Customer,(Ill)attributable to Customer's applications,equipment or facililles;(iv)resulting from reasons of Force Majeure or other causes beyond the reasonable control of BellSouth or the GSP;or(iv)lasting ten minutes or less. (b) The objective for Network Availability is 100%. For any month in which the objective Is not met,Customer will receive a credit, which may be applied towards Customer's subsequent monthly invoice(s),equal to 1130th of the monthly recurring charges for the affected Services (i.e.,the ponion(s)of the Services directly made unavailable as a result of the outage(s)In question)for each cumulative hour or portion thereof during which such Services are unavailable to the Customer(subject to the limitations set forth herein).Unavailability and credits will be prorated and paid In 15 minute Increments. 3. Moan Time to Repair. 'Mean Time to Repair'Is the monthly overage lime over any calendar month it takes for BellSouth end the GSP to resolve any outage problem classified as'major'or'crlical'by BellSouth's Network Operations Center. Mean Time to Repair is calculated as follows: Mean Time to Repair = Total outage minutes Total outage occurrences Tho objective for Mean Time to Repair is not to exceed four(4)hours. This objective will be measured and reported but the Customer will not receive a credit If the objective is not met. 4/2002 Customer rut:" Date: (1d3�o - 6of11 • ® • BELLSOUTH BellSouth Business Services • Terms and Conditions 4. installation Date, (a)'Installation Dale'is the actual date that the Services are made available to the Customer. The Installation Date shall not be deemed missed due to installation delays attributable to(i)reasons of Force Majeure or other causes beyond the reasonable control 1 of BellSouth or the GSP;or (II)Customer's applications,equipment or facilities. All expedited installation requests do not qualify for this Installation SLA. (b) The objective for the Installation Date Is to be an or before the target dale committed to by BellSouth,as reflected on BellSouth's service management records. For any installation for which the objective is not met(other than for the reasons set forth above)Customer will receive a credit,which may be applied towards Customer's subsequent monthly invoice(s),equal to 100%of the Installation charges(if any)otherwise payable by the Customer for the ServIas. 5. Latency, (a)"Average Latency'Is the monthly average round-trip latency of designated portions of the GSP's network connecting the primary BellSouth Managed Facilities(Tier-1 BMFs)to each other or to the GSP's IP network,determined by measuring round-trip network responses over such portions of the network as determined by BellSouth and the GSP. The objective for Average Latency Is to not be greater then 55 milliseconds.For any month In which the objective is not mat,Customer will receive a credit,which may be applied towards Customer's monthly invoice,equal to 10%of the monthly recurring charges for the Services. Network delay will not be considered for purposes of Average Latency,and Service credits will not be avaiable to Customer,In cases where the Services are delayed as a result of(I)the negligence,acts or omissions of Customer,its employees,contractors or agents or Its end users;(II)the facture or malfunction of testing equipment,applications or systems;(ill)circumstances or causes beyond the control of the GSP,Including instances of Forks: Majeure(as defined as Including war,riots,embargoes,strikes,,or other concerted ads ei workers(whether GSP or others),casualties or accidents, malicious or criminal acts of third parties,or any other causes or circumstances whether of a similar or dissimilar nature to the foregoing,which prevent or hinder the delivery of the Services);or(Iv)scheduled service maintenance,alteration,or implementation.Such Credits will be granted only if Customer affords BellSouth full and free access to Customer's equipment la perform necessary testing,troubleshooting or related activities. —_ 8. . pocket Lost. (a)'Average Packet Loss'is the monthly average round-trip pocket loss of designated pentane of the GSP's network connecting the primary BellSouth Managed Facilities(Tier-1 BMFs)to each other or to the GSP's IP network,determined by measuring round-trip network responses over such portions of the network as dotomtined by BellSouth and the GSP. The objective for Average Packet Loss is to nal be greater than 0.5%.For any month in which the objective Is not met,Customer will receive a credit, which may be applied towards Customer's monthly Invoice,equal to 1/30th of the monthly recurring charges for the Services. Packet lass will not be considered for purposes of Average Packet Loss,and Service credits will not be available to Customer,In cases where packets are lost as a result of(I)the negligence,acts or omissions of Customer,Its employees,contractors or agents or Its end users;(II)the failure or malfunction of testing equipmenL applications or systems;(iII)circumstances or causes beyond the control of the GSP,Including instances of Force Majeure(as defined as including war,dots,embargoes,strikes,or other concerted acts of workers(whether GSP or others),casualties or accidents. malicious or criminal acts of third parties,or any other causes or circumstances whether of a similar or dissimilar nature to the foregoing,which prevent or hinder the delivery of the Services);or(lv)scheduled service maintenance,alteration,or implementation.Such credits will be granted only if Customer effonis BellSouth full and free access le Customer's equipment to perform necessary testing,troubleshooting or related activities. Other Terms and Conditions Customer should anticipate receiving any applicable credit within 2 billing cycles alter the month In which the SLA objective was missed. If Customer believes a credit should have been applied but was not,Customer must request credits within 120 days after the dale of the report from BellSouth giving notice that an SLA objective was missed and that a credit Is being Issued.If Customer's request for a disputed credit was In error,Customer may be charged for the costs associated with researching the disputed credit request. - The total credits payable for SLA objectives(other then the Installation Date SLA)missed during any one month period shell not exceed the total monthly recurring charges for the Services In that month. 19. Terms and Conditions for GSP Service. (a) UUNET Technologies, Inc. ('UUNET) exercises no control over, and accepts no responsibility far, the content of the Information passing through UUNETa host computers,network hubs and points of presence(the"UUNET Network"). UUNET(a)MAKES NO WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, FOR THE SERVICES AND EQUIPMENT IT IS PROVIDING, (bt DISCLAIMS ANY WARRANTY OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE, and (a) WILL NOT BE RESPONSIBLE FOR ANY DAMAGE CUSTOMER SUFFERS,INCLUDING ANY DAMAGES FOR LOSS OF DATA RESULTING FROM DELAYS, NONDELIVERIES,MISDELIVERIES,OR SERVICE INTERRUPTIONS. Use of any Information obtained via the UUNET Network Is at Customer's own risk. UUNET specifically denies any responsibility for the accuracy or quality of Information obtained through Its services. UUNET shall not be liable for any delay or failure In performance due to Force Majeure, which shag mean ads of God, earthquake,labor disputes, changes In law, regulation or government policy, dots, war, fire, epidemics, acts or omissions of vendors or suppliers, transportation difficulties, or other occurrences which are beyond UUNET's reasonable control. (b) Al use of the UUNET Network and the service must comply with the Then-current version of the UUNET Acceptable Use Policy (`Policy') available of the following URL www.uu.netlusopoiicy. UUNET reserves the right to amend the Policy from lime to time,effective upon posting of the revised Policy at the URL. UUNET reserves the right to suspend the service or terminate this Agreement effective upon notice if UUNET determines that there has been a violation of the Policy. Customer agrees to indemnify and hold harmless UUNET from ony losses. damages,costs or expenses resulting from any third party claim or allegation("Claim")arising out of or relating to use of the service,including any Claim which,If true,would constitute a violation of the Polley. 42002 Customer In late Date: C/f.) 4.3 7o111 mu. Y J Y U Y Y\ 'v u/ i l , IJ RH UUMIAILIUMv `, u 11/ v v J J v J 1 1 J I I I Y l Y/ VI J © BELLSOUTH BellSouth Business Services Terms and Conditions (C) Network(IP)addresses assigned from a UUNET net-block ere non-portable. Network(IP)address space alocated by UUNET must be returned to UUNET in the event Customer discontinues service. (d) Payment Is duo 30 days after dale of Invoice. Accounts are in default If payment Is not received within 30 days alter date of invoice, If payment is returned to UUNET unpaid Customer Is immediately In default and subject to a returned check charge of$25 from UUNET, Accounts Unpaid 60 days after dale of invoice may have service inter-mated. Such Interruption does not releve Customer of the obligation to pay the Monthly Fee. Only a written request to terminate Customers service relieves Customer of the obligation to pay the Monthly Fee. Accounts in default are subject to an Interest charge on the outstanding balance of the lesser of 1.5%per month or the maximum rate permitted by law. Customer agrees to pay UUNET Its reasonable expenses, Including attorney and collection agency fees, Incurred in enforcing its rights under these Terms and Conditions. Prices are exclusive of any taxes which may be levied or assessed upon the Equipment or services provided hereunder, Any such taxes shall be paid by Customer. If Customer is exempt from otherwise applicable taxes,Customer must submit Its lax identificallon number and exemption certificate at the same lime it submks this Agreement. (e) Billing for UUNET service will commence when biting for the corresponding BellSouth.netlU service commences.The Start-up Charge(If any)may be invoiced upon acceptance of this Agreement by UUNET. Charges for Equipment shall be Invoiced upon shipment. Service Is Invoiced monthly in advance. After the end of any applicable Term Commitment. UUNET reserves the right to change the rates by notifying Customer 60 days In advance of the effective dale of the change. (i) If UUNET determines In Its reasonable commercial judgment that UUNETs network was unavailable to Customer,the following will apply (for dedicated business access services at 128Kbps or higher and dedicated web hosting services only): If UUNET so determines that UUNET's GSP service was unavailable for fewer than four consecutive hours during such calendar month, UUNET,upon Customers request will credit Customer's account for such month the prorated charges for one days GSP service. Or If UUNET so determines that UUNET's GSP service was unavailable for four or more consecutive hours during such calendar month,UUNET,upon Customer's request,will credit Customers account for such month the prorated charges far one week's service. Schedule maintenance shall not be deemed to be unavailability of UUNET's GSP service. Unless agreed to in writing otherwise,this paragraph sets forth Customers exclusive remedies for unavailability of UUNET's GSP service_ Tho remedies set forth In this paragraph shall not apply If unavailability of UUNETs GSP service IS due to Customers equipment or servers, Customer's access connections,network unavailability outside of UUNETs network,or events of force majeuro. Credits will not apply to charges for Customer access or any charges for services other than UUNETs GSP service. Customers with multiple connections at the same location will not receive credits pursuant to this paragraph if at least one connection continues with service available. Customer's account shall not be credited more than the prorated charges for one week's service In any calendar month. (g) These Terms end Conditions supersede all previous representations, understandings or agreements and shall prevail notwithstanding any variance with terms and conditions of any order submitted unless and except to the extent such variance Is expressly set forth In a Special Exceptions section of the Order. Acceptance of this Agreement by UUNET may be subject, in UUNETs absolute discretion, to satisfactory completion of a credit check, Activation of service shell Indicate UUNET's acceptance of this Agreement. Use of the UUNET Network constitutes acceptance of these Terms and Conditions 20, Confidential Information (a) Except as sot forth In this Section, or as otherwise expressly provided In this Agreement, each Party agrees that (I) all Information communicated to It by the other and Identified and marked as'confidential,'whether before or offer the dale hereof,(ii)all information Identified as confidential to which it has access In connection with the Services and Equipment,and(Ili)this Agreement and the Parties'rights and obligations hereunder(collectively, 'Confidential Information"), will be, and will be deemed to have been, received in confidence and will be used only for purposes of this Agreement.Each Party agrees to use the same means It uses to protect Its own confidential Information,but in no event less than reasonable means, to prevent the disclosure and protect the confidentiality of Confidential information. No Confidential Information will be disclosed by the recipient Party without the prior written consent of the disclosing Party; provided, however, that each Party may disclose this Agreement and any disclosing Party's Confidential Information to those who are employed or engaged by the recipient Party,its agents or those of Its affiliates who have a need to have access to such Information in connection with their employment or engagement,provided the recipient Party notifies such persons of the obligations set forth In this Section and such persons agree to abide by such obligations. (b)The obligations set forth In subsection 18(a)above will not prevent any Party from disclosing Information that belongs to such Party or(i)is already known by the recipient Party without an obligation of confidentiality other than under this Agreement. (ii) is publicly known of becomes publicly known through no unauthorized act of the recipient Party, (Ili) Is rightfully received from a third party, (Iv) Is independently developed without use of the disclosing Party's Confidential information or(v)Is disclosed without similar msuiullons to a third party by the Party owning the Confidential Information. If Confidential Information Is required to be disclosed pursuant to law,regulation,tariff or a requirement of a governmental authority,or In connection with an arbitration or mediation,such Confidential information may be disclosed pursuant to such requirement so long as the Party required to disclose the Confidential Information, to the extent possible, provides the disclosing Party with timely prior notice of such requirement and coordinates with the disclosing Party in an effort to limit the nature end scope of such required disclosure.Upon written request al the expiration or termination of an Attachment or Order,all documented Confidential information(and all copies thereof)owned by the requesting Party(if previously received by the terminating Party)will be returned to the requesting Party or will be destroyed,with writton certification thereof being given to the requesting Party. The provisions of this Section will etmrive the•expiration or termination of any Order, Attachment and this Agreement for any reason. (c)Confidential information will not Include any feedback,data,answers,questions,comments,suggestions,ideas or the like,that Customer sends to any BellSouth Company relating to the Services ar Equipment, unless Customer identifies it as Confidential Information. BellSouth assumes no obligation to protect such information from disclosure and will be free to reproduce,use,and distribute the Information to others without restriction. BellSouth will also be free to use any Ideas,concepts,know-how or techniques contained in such information or developed by them,for any purpose whatsoever Including but not limited to developing, manufacturing and marketing Services and Equipment Incorporating such information.Nothing contained In this Section restricts the right and ability of FIBS and BellSouth to use Information concerning the execution of this Agreement and the provision of the Services and Equipment to Customer In Internal publications. 4/2002 Customer Initia Data: `1 J i n} 8 of 11 I �. .,,,,. ,. .� . .. ____._ ___ _ _.. ..�__ ,. ....� .�. ..• , vv• . V11/ VLJ ® BELLSOU77-1 BellSouth®Business Servi ces Terms and Condltions 21. General. (a) Customer may permit Its customers or other authorized users to utilize the Services as part of business operations or services provided by Customer,subject to these Terms. However,Customers Services may not be assigned Or transferred by Customer without the prior written consent of BellSouth.Any attempt by Customer to assign or transfer any of the rights,duller,or obligations of Customer with respect to the Services without BellSouth's written Consent shall be void,and no assignment or transfer shall release Customer from any Re obligations with respect to the Services. BellSouth may assign,delegate or otherwise transfer Its rights or obligations hereunder,In whole or In part,at any lime, but no such assignment shall release BellSouth from ultimate responsibility for the Services hereunder. (b) No action,regardless of form,arising out of the Services or these Terms may be brought by either party more then two years alter the cause of action has arisen. (c) These Terms,Including any Orders for the Services from Customer which have been accepted by BellSouth,sat forth the entire agreement between Customer and BellSouth respecting the Services,and supersede any prior written or verbal proposals,agreements, understandings or other discussions respecting the same.BellSouth will not be bound by any provision contained in any purohese order, confirmation,correspondence or other communication from Customer which is at variance with,in addition to or conflicts with any provision of these Terms,unless such variance,addition or conflict is specifically Identified in a written agreement signed by Customer and an authorized representative of BellSouth which expressly references the appropriate provision of these Terms.No agent,employee,or representative of BellSouth has any authority to bind BellSouth to any afgrmallon,representation,or warranty unless the same Is specifically set forth in those Terms or in a written agreement as provided above. (d) These Terms and the Services shall be governed by the laws of the Stale of Georgia,without regard to its conflicts of laws provisions. If any provision or provisions hereof shall be held to be invalid,illegal,or unenforceable,the validity,legality,and enforceability altar remaining provisions shall not be In any way affected or impaired thereby, (e) The remedies of the parties set forth herein are not exclusive unless expressly so slated heroin. 4/2002 Customer Ilia Dale: �ld'' d 9of11 -- - - .. - ---'- --- - - .•.. ,. ....1 v v/ J v/ 1 J,1 J 1 . U 1 u/ U 1 J © BEl LSOUTH BellSouth Business Servi ces Terms and Conditions Terms and Conditions Order Summary BellSouth Service Type: Customer Premises Equipment Provided By; Dedicated Internet Access Customer • ransport Typo: Transport Provided By: Frame Relay(PVC Option) BellSouth ccess Speed(Please,Specify): Optional Features(Please Specify): 512 Kbps w/Full CIR Order Summary The undersigned Customer hereby ardors from BellSouth Telecommunications, Inc.("BellSouth")end UUNET Technologies, Inc. (GSP") BellSouth Business Service and the associated GSP service, respectively,of the typo.at the location and for the prices and term specified in this Order Summary Form and its related Order Detail Forms)(collectively,this"Order•). BellSouth Business - Service and the associated GSP service are provided,and this Order is submitted,subject to and in accordance with the BellSouth® Business Services Torms and Condilions, and GSP Service terms and conditions, and all applicable acceptable use policies. This Order is valid only when accepted by an authorized representative of BellSouth. The term of the Service begins upon completion of Installation by BellSouth or acceptance of this Order by BellSouth,whichever is later. Order Summary Form Pricing Information Installation Charges Rocurring Charges =ellSouth Business Service install Charge BellSouth Business SVC.Monthly Recurring Charge I $800 $661 ows Feed Install Charge Nows Feed Monthly Recurring Charge I $0.00 $0.00 -outer Filters Install Charge Router Filters Monthly Recurring Charge $0.00 $0.00 Total BellSouth Business SVC.Install Charge Primary DNS Monthly Recurring Charge(Ii over allocated a or tree domains) $800 $0.00 • otal GSP Install Charge Total BellSouth Business SVC.Monthly Recurring Charge - I $0.00 $661 omaln Name Registration-$70 one time charge Total GSP Monthly Recurring Charge I $D.00 $90 lrpcditcd Order•Yes=Additional Fee • $0.00 Total Install Charge Total Monthly Recurring Charge $800 $751 4/2002 Customer Initials Date: 1 1'rle a 10of11 O• BELL. SOUTH BellSouth Business Services Terms and Condidona Contract Term Expedite Install Date 24 Months Additional Terms and Conditions IMPORTANT CUSTOMER HAS READ AND AGREES TO BE BOUND BY THIS ORDER,INCLUDING THE APPLICABLE ORDER DETAIL FORMS)AND THE BELLSOUTH*BUSINESS SERVICES TERMS AND CONDITIONS AND RATE SCHEDULES AND GSP SERVICE TERMS AND CONDITIONS,AND ALL APPLICABLE ACCEPTABLE USE POLICIES,ALL OF WHICH REPLACE AND SUPERSEDE ANY OTHER NEGOTIATIONS,AGREEMENTS,PROPOSALS AND COMMUNICATIONS (ORAL OR WRITTEN) RELATING TO THE SERVICES LISTED OR DESCRIBED ON THIS ORDER AND SHALL PREVAIL OVER ANY ADDITIONAL OR CONFLICTING TERMS IN ANY PURCHASE ORDER,INVOICE,ACKNOWLEDGMENT OR OTHER SIMILAR DOCUMENT ISSUED BY CUSTOMER. NOTE The rates for this Service include the annual Domain Name registralion lee(for first Iwo years)with the inlerNIC If the customer purchases Domain Name Registration.After the Initial two years,the customer will be responsible for paying these fees directly to the InlerNIC. __ Any amounts for GSP charges shown In this Order are rates established by the participating GSP chosen by the Customer for service provided by the GSP. If Customer selects this option,BellSouth will attempt to meet the expedited Installation dato and Customer will be charged the additional ono-timo installation feo If and only if BellSouth meets such date or would have done so but for delays caused or requested by Customer. _ 42002 Customer Inl lal Dale: c1,►jnL 11of11 BellSouth Business Internet Services Order Summary Form Customer,Legal Name: Monroe County BOCC BellSouth Order Type: Customer Premises Equipment Provided By: Change of Service Customer Transport Type: Transport Provided By: Frame Relay BellSouth Internet Access Speed(Please Specify): Contract Term Upgrade from 512 Kbps to 3 Mbps(PVC Option) Coterminous to existing 24-Month contract Order Summary The undersigned Customer hereby orders from BellSouth Telecommunications, Inc. ("BellSouth") and UUNET Technologies, Inc. ("GSP") BellSouth Business Service and the associated GSP service, respectively, of the type, at the location and for the prices and term specified in this Order Summary Form and its related Order Detail Form(s) (collectively, this "Order"). BellSouth Business Service and the associated GSP service are provided, and this Order is submitted,subject to and in accordance with the BellSouth® Business Services Terms and Conditions, and GSP Service terms and conditions, and all applicable acceptable use policies. This Order is valid only when accepted by an authorized representative of BellSouth. The term of the Service begins upon completion of installation by BellSouth or acceptance of this Order by BellSouth,whichever is later. Order Summary Form Pricing Information Components One Time Monthly Recurring GSP Charge $0 $270 BellSouth Charge $0 $1,740 Domain Name Registration Fee None N/A DNS N/A Only using Free Domain Packet Filtering Option Not Selected Option Not Selected News Feed Option Not Selected Option Not Selected Multi-homing(must complete MHS Service Inquiry) Option Not Selected N/A Expedite Fee* Not an Expedite N/A Frame Relay Fail Over Option Not Selected Option Not Selected NAT (must complete NAT Optional Feature Order Form) Option Not Selected N/A Other: Total $0 $2,010 9/2002 Customer 1r�itial 7 Date:• !IIl4 el. 1 I Customers Changing Existing Service Current/Existing Contract Term Start Date 11/1/02 End Date 11/1/03 Existing Contract Extension ( Check One ❑ For the new service, Extend Customer's Contract: The minimum service term of Customer's prior Order(s)shall be extended by the contract term specified on page 1, any new services or features added shall be coterminous with the other Services under such Order(s); or Z For the new service,do not extend Customer's Contract: The changes set forth above will not extend the term of Customer's prior Order(s); any new services or features added shall be coterminous with the other Services under such Order(s). Additional Terms and Conditions IMPORTANT CUSTOMER HAS READ AND AGREES TO BE BOUND BY THIS ORDER, INCLUDING THE APPLICABLE ORDER DETAIL FORM(S)AND THE BELLSOUTH®BUSINESS SERVICES TERMS AND CONDITIONS AND RATE SCHEDULES AND GSP SERVICE TERMS AND CONDITIONS,AND ALL APPLICABLE ACCEPTABLE USE POLICIES,ALL OF WHICH REPLACE AND SUPERSEDE ANY OTHER NEGOTIATIONS,AGREEMENTS,PROPOSALS AND COMMUNICATIONS(ORAL OR WRITTEN) RELATING TO THE SERVICES LISTED OR DESCRIBED ON THIS ORDER AND SHALL PREVAIL OVER ANY ADDITIONAL OR CONFLICTING TERMS IN ANY PURCHASE ORDER, INVOICE,ACKNOWLEDGMENT OR OTHER SIMILAR DOCUMENT ISSUED BY CUSTOMER. Accepted by Agreed to by BellSouth Telecommunications, Inc. Monroe County BOCC Signature Date Signaa�turee Date gn� Name Title Name Title c)C)C Cr1'CK5dVI I��reC't c .fccti, i 1S:. NOTE The rates for this Service do not include the annual Domain Name registration fee (for first two years) if the customer purchases Domain Name Registration.After the Initial two years, the customer will be responsible for paying these fees through the appropriate domain name registrar. Any amounts for GSP charges shown In this Order are rates established by the participating GSP chosen by the Customer for service provided by the GSP. If Customer selects this option, BellSouth will attempt to meet the expedited installation date and Customer will be charged the additional one-time installation fee if and only if BellSouth meets such date or would have done so but for delays caused or requested by Customer. 9/2002 Customer Initials Date: !I f q 2 Exhibit H Order Form for Marathon Internet Service OT-16-2003 10:37am From-BellSouth Online 8784417401 T-895 P.002/013 F-131 I _. ® BELLSOUTH BellSouth Dedicated Internet Access Service Availability Check and Order Form (ATM, NxT1, Frame Relay, Private Line, and ISDN 128k LAN) Instructions: Use this form for ordering standard Dedicated Internet Access offers. • • The table below identifies which pages of the order form must be completed based on DIA service option sold to the customer_One form must be completed per DIA connection. • This form should be filled out online and Submitted via E-mail. • Brief instructions for each input field will be displayed in the lower left-hand corner of the screen. For more details, click on an input field and press the Fl key for online instructions;they will appear in the text box. • This form may be navigated by section in MS Word by clicking on View>Document Map In the menus or clicking on the Document Map button: al. Simply click on the heading name in the Document Map and Word will instantly take you to that section. • ALL GRAY FIELDS MUST BE LEFT BLANK —FOR BellSouth.net USE ONLY. • All forms must be e-mailed to.macformsiBbellsouth.com when complete. Fill out only the pages related to your service option. Please indicate the Service Being Ordered Below is a list b service • • ion/r-•uest 4•e of the •a!es ou will need to cam•lete. DIA Sri vic Option Service Bei ig Pages To 8e Oifieied Completed -- Service Availability Check(Inquiry-Only)—required before the sale for ATM, Private ❑ Line, and Frame Relay above DS-1 • 283 Expedite Request ❑ 2 s 3 ATM Permanent Virtual Circuit • ❑ 2=8 8A Frame Relay NxT1 ❑ 2_8 88 Frame Relay Packaged (Including options on Smarming) ❑ 2-8 BC Frame Relay -Customer Provided Equipment ❑ 2=8,80 Frame Relay—Permanent Virtual Circuit ® 22=8.8E Private Line Internet Access (Including Options on SmartRing) ❑ 2=8,8F ISDN 128k LAN—Port Only ❑ 22-8,88 BellSouth Bandwidth Advantage 0 28 8E Is this order part of an SRF/SAF? No { Order Summary—For Service Management Only I • •. . .In a n +�4�7r^�• ,'. ,r, •. 'Y.l • • .... Rf,:`•. . .`• Nv_ I•"'ti•~r•~• 'v-A tea , I �,1-:",", •��' `� .^ -1."' '•• ''�:' • •i:''�4 :•.':!- •,. _; ' �i •/f ''•''{r ••ter'7-i"!"•4''• li':.. _ - .I•;., .• ..J.•, •'l., .• !.•.. ,• i?•.,:,F`:• o- 1, •.. ; r '-'T' "'' - r ''" •�1lrYl' 44g:.; •i ••T • • • +,ra•,�, �, s,`I7^r;=rr• � 'S��i:l"'i,I• r li n=. y_ ,,..r , --:P.. . •, } tii: • .: iir..:a•„ • =Y' ,per i, ,,• CPtrbLIyL Return to Table of Contents 1 c275134834t8 O Page 1 OT-16-2003 10:37am From-BellSouth Online 6784417401 T-895 P.003/013 F-131 • - ® BELLSOUTH CUSTOMER NAME: Monroe County BOCC Expedite Information lie 5uie �IIIIIClI11C ill DIA E..viedlle POliCy (iOu(id Gal the Intici iut Situ) butf.ri lead and fi�IIOw it Expedite Request:eq ❑ Requested Expedite Service Date Name & Phone Nulnt>ci of Allpiovilly AVP Expedite Reason AJUIIIC.IIaI I1110i111 thuli of Jtz;lifl::allul, For t:,l;cclile Rei1&1 i Seller Information cllci M;iu1c �illc SuV1111��IJn Date Ed Gonzalez Account Executive 10/17/2002 11:41 AM JIrCC[ A liliS Ca[Y si.i1G LIP Cyy� 76501VW 1901 Street,Suite 600 Miami FL 33126 F'h1.uc Ilu�liLci Payci N Gfi(011ll..n.i) E-ul:ill Alltlicajj (305)569-7202 ed.gariz6lez®pellsouth,corrl ra} I ull' l MiLsl i,uil>L s!uilL ` C 111111>r1 1 (305)569-7318 F61D Large Business Nexl I eve( AddiesS . ___ elsna.cordat®bellsoum.com __..__ EC Specialist/Sales Specialist Information JI)cCI�Ii( fJanlc _ Y f SaleClillal F ll:11c f lulillicl .Jared Kay (905)569-7370 Ili-i f.-i llil f': i-fl�I,iiII I Jarea.ltay a Dellsoutll.com Sales Team Contact Information VJIlu la the MAIN ACi..iuul"coin CiilliaL1 IGI E1cllSGulr1 Etu tile 111i r iuf JCI ui CS .Juf111y [I'le II111ilelllelllallull piuCe;s7 C i11 J A It - CII 001.i,-,- jared.kay®bellsouth.com E-Business Specialist Sales Technical Contact Information JSIC� fc C11111i.n1 (;. iiAla I cCll fll_�I Jgl�3 C 611.11.1111 r'hlalc rlur�lr{ci Illl i.lut]c Rica CuJc) David Delgreco (305)569-7205 YaJci rluliib, E-mail AdiIce�� david.delgreco®bellsoutn.com 1c275f3463418d0 Page 2 07-16-2003 10:38am From-BellSouth Online 8784417401 T-885 P.004/013 F-131 - O BELLSOUTH Return to Table of Contents • Service Availability Check(SAC) The SAC process will ensure that adequate network and Other resources exist prior to making a customer commitment Service Availability ChecKs are mandatory,and do not replace the Service Inquiries that must be submitted to BellSouth Telecommunications to verify availability of transport services such as frame relay.SACS must be submitted for ATM Internet Access,Frame Relay Internet Access(speeds above DS-1),NxT1 Internet Access,and Private Line Internet Access. SAC -Type Inquiry-only SACs must be submitted when a customer plans to make a buying decision within 60 days and BellSouth has greater than a 40%chance of winning the business. Responses to Inquiry-only SACs include .1 service availability and installation interval following receipt of a completed order;these responses do not reserve resources nor provide actual installation dates.Inquiry-Only SAC results are good for 30 calendar days. Firm-order SACs must be submitted when BepSoum has an 80%chance of winning the business.Responses to Firm Order SACS include resource reservation;a completed order must be received by BellSouth net no later than 7 calendar days after the reservation is made,to De submitted when BellSouth has an 80%chance of winning the business. Responses to Firm Order SACs include resource reservation;a completed order must be received by BellSoum.net no later than 7 calendar days after the reservation is made. j Bfll • Service Stieet Ai1l7iC5t. I1.iS 111Quiiv Oily SAC bee..-1-1 Sub'iViiit8U City [thifily LIP CJ(le { .rrl �i1CC[I S rvic� C�1byUiv .;i(ll(-Z Scr•vice O Ii:iil Rcquc Slcil • le pCilG.Cu By U.iL:/I,ll�rv.il ��J.y� T',( t•{111,111i)II Date �` S.I+l •.• Y: y '- .. b s .11-•r. ',.'��ti!J-ri"�•1/r} {Sr.4t,4A 14111 SAC Ci_mii11e,11.`. Basic Order Information Ili.L_t•"t iiii1L',. I irrir-r �ytt ( I Heii,Ic Gl1 Sci Vice Date Ur Uci gyps Sei vl c (J{ill ll (Lc. FocV ii,t ell November 18.2002 PVC/Port Only tiv Sei vi a MI ( 1 - - 1 VIIiInaUvl, U.ilc {Ill holly- (ii IulUll1n11)I,) tj. -.t.l t+, " .ti ,• h'r' +R'--� ...Lr'...j fit" .t Y.1.R.`li Ci it Cliff, lJc4,..• 1 Aui. iiu ill Aii,)IIGur!e B N/A Ci 161)1 i PO 11u,lLUci ili AUUI1c;iblej 100thDtiall Da Instill Data A,1,1 riilte lrli, Si:eciil EVciill 1001101131) 1c275134834tedo Page 3 • 0T-16-2003 10:38am From-BellSouth Online 6784417401 T-895 P.005/013 F-131 ~' V © BELLSOUTH Return to Table of Contents Customer Information l-tl slvtnC� IU (.usluuicl IJvllti�vlluu -atoll AUJica. Erickson-toad®monroecounty- Lu�[�tilct rlulitc Cull]tact liitluslr'V Type ICankiiq antll:i lul'ci t1C ) Monroe County BOCC Government CuStoiiiOi LocalIGn (Malting) Acid,css 1200 Truman Avenue City :hare ZIP G ci Key West FL 33040 Customer Billing Information This section captures information on what BST CRIS billing account the customer wants these charges billed to.The selected account cannot tie a CLEC account. Billing contact information is also necessary in case of billing problems that could be encountered during the life of Me contract. 13 Character Cuslotnei Billing Telephone Nuliiber (BTN) In.-IL/ding Area C, tie And Customer Code (305)W29-9137-915 Litllln�J CuniNauy N�.tic Allctillvll: Monroe County BOCC Lisa DruckemiNer _ Cu:;tulncl 81II:t19 AJUicss 1 It Uiriercttt Y1'011% l;vatvincl I vu atiolt A1Jd,- 5. I Same City lhlc GIP Ct.cic Custuliter Billing Ci nt�,,l Ct�•>t�;utci t3tlliny Coi is ct Nome Custcsnc. C::..itoLI PIu,llt Nlul�tici Lisa Druckerrllller (305)295-5110 Ct/SluttiCt t3llllliil C:= ii t i:ltalblllci blilllill 1-t:.ftLi.t E tildll AJ i. Druckemtller-hsa®monroecounty-fl.com MAIN Customer Contact Information VVtio IS irlc MAIN Cusultllta Gotilci Ct tor k3c11SvUllt li t.nlUc Ilticiticl Sci JICaz. t It J the u' I@tilcrl[:itiutt limes.:-" Todd Erickson l i u13C[ t-111 11 Acltlrc5a }�Ie io spcciiv [lire cz ta>tllact: ericicson-toda®monroecounty-4.com Director of IT 1 c27513483418tl0 Page 4 0T-16-2003 10:38am From-BellSouth Online 6784417401 T-895 P.006/013 F-131 @ BELLSOUTH Return to Table of Contents Customer Technical Contact Cu:;tuliicr I CGr11i 1l:al COIItdC.I This Is the customer contact responsible for working with BellSouth tnroughout me provisioning process,as well as the post- implementation process. This contact is responsible for interfacing with BellSouth.net personnel,arranging for access at me service location for BellSouth personnel,and venfying operation of the DIA connection.This person(or the alternate below) is the only customer contact aumonzed to contact me BellSouttl.net Network Operations Center if there are Internet connectivity problems. I CCt.tlll.:Al Co11I7.3..I Na.1•IC t11C: liyu.11r-(01)1101131) Ken Perryman Plioice C•lali.Gcl IIIiCIiCIc Afca C6r1c) E1:1�il AU01c $ (305)289-2504 perryk®mail.state.tl.us• Fa rlhuiibci(Ii"IGILI. c Aic.i COdc) P 1&1c fd t,. (Q1,11,,lia11 Allcrli,Ic Cuatuliicr"cc. Alleln&le Tecimical Coluaca Nit i r IL 1,1.i.14lc or Ktiuw„) (vplltin.II Todd Erickson I'hoilL N i lti isr Address (305)295-5100 enckson-todd@monroacounty-fl.com Fag t iiiiti8i(11'ir:111ci. Area Code) F'oijcrPlullltlii (Ghtiulrnl) Artier 11c.i . (o.(i(1i.i1 85UJ 1I.)l a/l11]i I I,r I rvu1,IC Rrlir,rlliILI (t':)al 11i:,oil SII .11 ptiei i-io.lr," Iechiiic-*I Co11Jac1 rJa1ne(IJUIIOIiiI) W.EII IL) Est CC1 idiIet If/: 1>IuLll•ui llrin�� ialel G,�1�11ico3 I1u.1.s F'hGli.'. thtiot)cr(hicIuih: AiC� Co:1G) Pijei i1WIt:ci'I,CIIaIGII-all Service Level Agreement(SLA)' SeIVI.:e I cvcl Ai seeluc111 (SI A) il'ce)i,il i:oi11aG1 Ii11 Gr"ui.i ll::rl •SLA's are only a.pitcable for ATM,Private Line,Frame Relay N iT1,and Frame Relay Non-Zero CIR Customers. JLA Ficport FjcCllii tit St.A Hchioi IieCIpIcitt t Mail AUi11 S, Todd Erickson enckson-rodd 0 monroecounty-fl.com 1c2751346341800 Css Page 5 07-16-2003 10:39am From-BellSouth Online 6784417401 7-895 P.007/013 F-131 O BELLSOUTH Return to Table of Contents Circuit Information S�Wyy f�.l ll l [-1 ._-_ bi l,l l- _. I. 'j r;i;'4f,: �s'F�r'41%=r��';' 't,,N ry:•.:<.;V/ Miami South Florida/ Yfif 44 • .,�: • •• - .•'ore 4,.'" AFlorida Kays i�lii-ull Ieinliu'liuI. WIlcic will Eric i liCull re Icilnlu.itecl! H i/ I-1c,Gi/ i1ail�1ul,) 2798 Overseas Highway VVllcrc vylll Ells I C 1ci (bulll:ill)il/ Room/ v411,1 11ulilL C! A -tiLiill I c1IiMillii>li 4iiC.1!C:jJ Same (305)289-2504 Ciiv Suits Wiliuy H2i��iifucJ Marathon Ft. 33050 No Internet Service Information IJ a.ln1j111 id,iillc li c:j U[l ai ll:,(1 The Internet service information section covers several items:domain name registration with the InterNlC,existing network routing setup,ONS -.rions and IP number requests. Does CuStoillei Want BellSJlllil To Rcyi:;lr A . Ulllii4ll'1 CL F t,st 141Le u[ Cnlaluly UJiii i,, 116me-( .11c1 ."1-ila C.i.i[�1 of New O1.iiiaii'1 NJI'111_ No SeCuilll l7aiillnln (.Ili,u.c I hud Uiau�lu Ci ,1..is la u�luulci . i IJI1'Nc13 I luy eiVI(e.' IYe /No) No Existing Internet Connectivity t.k.iiiiy Ilile111c1 l..Qii i Ii vll i/_' WIII Ca151u11-i w' heel, E,:I�lluy Iuleiilel 1.vliile Cll.,l With F-i3vldci'' Yes No l..lnlliy Hi.yislcli:iJ IP AudrizS For the following question(Wilt You use Existing Registered IP Address?);if NO-then proceed to next section.If YES—BellSouth will evaluate whether or not Me customer's registered IP address space can be used/routed.Based on the following criteria:(1) Customer has a registered Class B or,(2)A minimum of 64 contiguous Class C Addresses.BellSouth Service Management requires the following information to adequately forecast and request IP Address space from the InterNlC. If this information is not included. then the order will be put on hold until this information is provided. Win "o€i Use Ei.isilmj F{cJlr,lci cii IP !1.(Wie ? t.151111!j If' I'a:1Jlb�5ea No IP Address Information 1 iiii ei of ELIJlilly II iiJvbalc Jci VI C� licaluiiiri j IF ell Eli :CJ 32 Nui liL,lll Cif ALh.111ia,es Hc.{uc plc;it 32 1 c275134634t8G0 Gas Page 6 07-16-2003 10:39am From-Bel I South Online Of U44I(4UI roam r.uueiuis r-isi • ® BELLSOUTH • Return to Table of Contents Domain Name Service (DNS) Information BellSouth otters Pnmary and Secondary DNS as standard features of ails service-A customer can choose from several possible BellSouth DNS arrangements:Primary DNS,Secondary DNS,both Primary and Secondary DNS,or no DNS. No DNS ( It r.16 DNS ,,trip Pi loll ,l y DJlli:uu tJ ull� Jdi V I%c I UN ) Secolidary 1JG111 IIII Nam,:+ei vlyi (L1Nj) to niil( It crIS ) Would you like BellSouth ro provide Pnmary DNS,a Would you like aBetlllSouth lo standard feature?provide Secondary standard feature? Yes eS Id yGui C:�lill):iiiy Al�u Iiui�;hci� ny SlIalezd HGSlliiy ti:,ui BcllSuullt? t ,(C.z;.ui 1l0 S Ieci {, li .4 tO tilt ogrll ) Q Yes ®No t1,te: Fiec PUNS Lit-nits Ara DSO S Max DS1/Fijc DS1 20 PIC.ise Llsl The Driliialiis On Which You Walt BellSouth To Max, AI'M/rlx i I,i ,SlI RAC DSa 50 Ms.: fr:r4ldc Sec:.iitdary DNS Free Additional Ar S5 Per Month Each: • "Please Note: Web Hosting Providers cannot use BellSouth as a secondary y •rovider. Primary DNS Server(Required II BellSouth Is Not Providing Secondary DNS Server Name IRCgniied If BellSouth Is Only Pilitiary DNS) Providing l iiidry UNS) G;iljllny Uviilbnl Plaitic NI/NY II "Yc5"--I'iovi(ic r•laiitc Secondary Ur1J Sciver 112 (UI:iIIUrial) Yes ic27S134634034 ass Page 7 07-16-2003 10:40am From-BellSouth Online 6784417401 T-885 P.009/013 F-131 Q BELLSOUTH • Return to Table of Contents Internet Connectivity �` IF Ilie Cti 1Oi tei lid .,II tri Ltiuy I111[.Gill.]i RouICd IlelvJUi la, Tlleil FI o1,1i1C I e puii,e To Tile Follo��iiiij QLIcSIIvi1s Oiheiwlse, Del1olc Nol ApollCal,lc (NIA) U.., 1': a Eli;ploy it G 1-i t11111y/ I,I(c1 NA I) "RCliiltl[)ci NA I .;;IIIIIU( t,c I .I9IIoye 1 sill bcIlJ,�uTI, iuulcF c llli Paa.kal9cil S ecuitc Omer No t..::eI)(I,ui 11 Ficuunl[lt..ii j Frl•:Iz,,, Optional Features CIhUI_. ;-L Ge115..u111 t3U.Ulca� liilclnc'l st,via;c� I hii USENET IJcvvS Scivci Aa e :; (Full Fu5l% Oillyl 1'Ju,li4;LII (;.I:,Lu oriel IJL JJ Sc.)vci Uc ail c,l% (\ft't, No N/A I.cvcl 1 PiCki Fiitei111J'.' (YiN) Ilan CLI ut°i i Nu1C11a�e(1 NISij U SeCullly Scivl c ' No No Flame.HC141/ F ilvvcic' IY/N) Fialoa Relay t alli vci Out ul BaliiJ ACcc , IF No N/A Fiai`Lic Relay F,illovci: Cu:auillel EF i CIiCul( ID allil SPICES DIA ScJivice Optioit Pay c� T o Uc Co111l�Ick cJ ATM Permanent Virtual Circuit Frame Relay NxT1 § Frame Relay Packaged(Including SmartRing Options) BC Frame Relay -Customer Provided Equipment SD Frame Relay—PVC (Including Bandwidth Advantage) 8E Private Line Internet Access—(All Options) sF ISDN 128k LAN—Port Only 8G 1c27513463418a0 ass Page 8 07-16-2003 10:40am From-BellSouth Online 6784417401 7-895 P.010/013 F-131 .• ©BELLSOUTH Return to Table of Contents Frame Relay Internet Access—Permanent Virtual Circuit Option is LIM; SCA vice hcloy i..)11-1 until 1.3ell.SOLIIII aiirIvjid1ri ACIIifilacje? N. Fialtke Relay haw 0ttini ctiffier L CT .ii CLLi Cc,dc 1-1..,1/IIC Het:1y SWIICII CI I I CO(.1e PARTHFLACI101 KYINSFLPAA k:"2()Jun cuac I - - . PVC-DS3 111:11111t- H...lay(-lit-ult. ID 07te,"ittitet..1) Due vote or(icy,/ C.idei tut Fiame CI(cult) 70.SIXF.500004 77/78/2002 cut.tomci Lit c:t Nooit:),,raJ iItiiCjAt::,ottrIL N Les (Rc•q 13 uir( ) - - • -• 211 NO44CFV3 / (305)W43-1702 Cod Foi Er Lc•caltotti T.-/A U ,de (Fut Each L oc,altutty Frame Relay PVC Customer Equipment haul tuotiun - ktJttlet Vcitt.luu deI Ntliiit)er Cisco 35 Sulmare Veit y (Gpilui(J1) Sci(al Numbei (Opttc,,..it) (Op li,,11:11) Hro,LI......31 I y. 1-L1,k0 Ch.; (U1..liuti../1) • _ . - . . Pi e(1.1s•c:SEipita,i tiritioi CSUDSLi mitr Veiid: M .,dcl rittica.“_; Cisco 3600 k R0,1, /4 Etc (OptiOcialt Port Speed / CIR 1,04( Spce(.117., (.5c1cct Otic (Drily) ,n,51.1ult 1=t.3t,3-(CIFit 0,14*. Duly) _ . . 256 Kbps Fuji 1c2751346347800 Page BE 07-16-2003 10:40am From-BellSouth Online 6784417401 T-895 P.011/013 F-131 Q 6ELLSOUTH _ Beilsoutha Business Services Terms and Conditions ID( SA1 Terms and Conditions Order Summary EeiiS. .ti se,vice 1 ylic. Pi EC,ulii,iic,li Li Esy: - Dedreared IntemetAccess Customer Ya115,).�II iy,ic. 7 i�11�{,Jil r u. ilUci1 ay: ' Frame Relay(PVC Option) BellSouth �Jc�� 51Jcc<1(PI�Jw 1;c.aly); VrilnniJl fC1lU,CD Ihl u�u J)ic lh/;: 256 Kbps re/Full CIA -- Oi(Jcl Ju+Yuuei y The undersigned Customer hereby orders from BellSouth Telecommunications. Inc. ('BellSouth')and LUNET Technologies, Inc. ("GSP")BellSouth Business Service and the associated GSP service,respectively,of the type, at the location and for Inc prices and term specified in this Order Summary Form and ite related Order Detail Forms)(collectively,this-order). BeilSoutrr Busmnss Service and the associated GSP service are provided,and this Order is submitted,subject to and in accordance with the BellSouthe Business Services Terms and Conditions,and GSP Service terms and conditions,end all applicable acc ' _ •=- •olicies. This Order is valid only when accepted by an authorized representative of BellSouth. The term of the Sew = begins upon •• pletion of installation by BellSouth or acceptance of this Order by BellSouth.whichever is later. Order Summary Form ` E P.•icinii information Installation Charges Recurring names SVC Cll:�uuill Gu5111cso `ICI VI..0 I,taI;III t�l,oi yc BeIISuuII, buol,lc�� til.,u llliy Ficct.irui j Cruecye - I $800 $534 - JLIJ 1'CC�I i u ., l Cll.,, molordy F(cuu'.I,i.jl.La.gc S0.00 $0.00 uulcr Flitch lu�l.itll Cr.a,yc HGulc, Ftite . ILli,f,[IJy lie u,l'u,y la..i,yc $0 0o $0.00 yi:: y DNS rul..:,i,lllly F-r.:"+„I+,c/ �:I,al'yo,,l ..vci .,Ilv�alcJ rt ..i hue $500 � • • •. c �..�`: IS ...c'.,, C.'' r.�.' `r.\d',,', ,,:.,,.... ' •JY••a.."��•'•... .:La1 GSP i.,stell Cr-ha,ya BuslnJeas SVC MC/lardy Fei:u,,ii.y Cll:.ryi: $0.00 $534 ,.i. .Lil r•laiiic Kcylcl.3tlal, j/U oil, Il+11. c ie, r I alul G:P IVIO,iUlly hec.u,u,j CI.. jc r--1 Iso-uql $66 :, r.dlrcd Orilcl-Ycb _ Additional Fcc $0.00 l aic) Ili�l ill Chat yc Cliarye - 4/2002 Customer Initloli Dote 0T-16-Z003 10:40am From-BellSouth Online 8784417401 T-895 P.012/013 F-131 O BELLSOUTH BellSouth Business Services Terms and Conditions $800 $599 Cui`t: i�t1cilia L.,et11CliI.l;,II1.5112 24 Months Additional Ternts and Conditions IMPORTANT CUSTOMER HAS READ AND AGREES TO BE BOUND BY THIS ORDER, INCLUDING THE APPLICABLE ORDER DETAIL FORMS)AND THE BELLsOUTH`BUSINESS SERVICES TERMS AND CONDITIONS AND RATE SCHEDULES AND Gsp - SERVICE TERMS AND CONDITIONS,AND ALL APPLICABLE ACCEPTABLE USE POLICIES,ALL OF WHICH REPLACE ANO SUPERSEDE ANY OTHER NEGOTIATIONS,AGREEMENTS, PROPOSALS AND COMMUNICATIONS(ORAL OR WRITTEN) RELATING TO THE SERVICES LISTED OR DESCRIBED ON THIS ORDER AND SHALL PREVAIL OVER ANY ADDITIONAL OR CONFLICTING TERMS IN ANY PURCHASE ORDER,INVOICE,ACKNOWLEDGMENT OR OTHER SIMILAR DOCUMENT ISSUED BY CUSTOMER. • • • NOTE The rates for this Service include me annual Domain Name registration fee(for first two years)with the InterNIC if the customer purchases Domain Name Registration.After the initial two years,the customer will be responsible for paying these fees directly to the interNIC. Any amounts for GSP charges shown in trim Order are rates established by the participating GSP chosen Dy the Customer for service provided Dy me GSP. If Customer selects this option,BellSouth will attempt to meet me eipeaited installation care ana Customer will be cnargea me aagtrional one-time installation lee if and only if BellSouth meets such date or would have done so but for delays caused or requested Dy Customer. 4/2002 Customer Initials Date. Exhibit I Letter of Agency/Authorization BOARD oR ooURTY COIWN Q@t'AYEOQ ;; •,.T�„r Mayor Dbde M.Spehar,District 1 —v" '�, Mayor Pro Murray E.Nelson,District 5 C9UNTYYNIONROE Dis�ct2 uer WEsrFLOM:A 33040- �►,' r. Charles"Sonny"McCoy,DlstrltC 3 (30S)204-4041 ;�, • .�' .4,�.. � David P.Rice,District 4 lAftAla CV' June 24, 2003 BellSouth Telecommunications, Inc. 575 Momsgo Drive Atlanta, GA 30324 Re: Letter of Agency/Authorization Gentlemen: The undersigned hereby designates BellSouth Telecommunications, Inc. and its affiliated companies("BellSouth") as Its agent for the purpose of p) placing and coordinating orders for communications services and facilities, or related equipment designated by the undersigned (collectively, "Products"or"Services"with local exchange carriers, interexchange carriers and other providers of communications-related services or related equipment designated by • the undersigned (collectively, "Providers"), and/or(ii)otherwise dealing with and performing all ancillary and related matters with respect to coordinating the fulfillment of such orders and/or the installation,delivery, maintenance, servicing or repair of such Products or Services, and the undersigned authorizes BellSouth to place such orders for Products or Services or to perform such other activities described above, directly with such Providers on behalf of, for the account of and in the name of the undersigned. The undersigned acknowledges that it,and not BellSouth,will be responsible for determining and selecting the Products and Services and the Providers to be Utilized by the undersigned and for payment of all charges for Products and Services In connection therewith. The undersigned intends that copies of this letter of agency and authorization may be given by BellSouth to Providers and that such copies shall be sufficient evidence for such Providers of BellSouth's authority as granted hereunder. This letter of agency and authorization shall remain valid until expressly revoked in writing by the undersigned. Sincerely, [Customer] By: Name: Todd Erickson Title: Director of Technical Services Exhibit J Memo From Former Director of Technical Service on Change in Computer Cabling Procedure r � BOARD OF COUNTY COMMISSIONERS �- Mayor Dixie M.Spehar, District 1 .�� 1;:� Mayor Pro Tern Murray E. Nelson, District 5 O U N TY oM O N ROE _ - ,A; " • George Neugent, District 2 KEY WEST FLORIDA 33040 T y; i �4. +. Charles"Sonny"McCoy, District 3 /•. (305)294-4641 L s1 �.', :,;,1 David P. Rice, District 4 • • n: To: All Division Directors From:Todd Erickson, Director of Technical Service RE: Change in Computer Cabling Procedure Everyone, Effective immediately, Technical Services has begun to outsource new computer/phone wiring projects. There will be some cases where we will still have Ed Burr (Bellsouth) or Public Works assist, but this will be on a case by case basis. Although this will mean an increase in cost to the departments with wiring projects, Technical Services has found that the new grade of Category 6 cabling to be very sensitive to pulls, bends and electrical interference and therefore requires a vendor that can certify there work before we are able to use it. We have spend into the hundreds of hours trying to troubleshoot and fix computer and network problems, only to find out that a few cable runs were creating the entire problem. Most of our new phone projects include the new IP Telephones, which uses the computer network to place and receive phone calls, so telephone wiring will soon all need to be certified as well. We commending 4 jr e s; Onor com , e telh , on fora printerarere and one fora mobile acksfor deviceanyne(laptopcabl , palmrun , etce)f . We areputer researchingonfor severalep vendors e that can provide the proper product and reliable service. The cost for 1 cable run is about $110, while to run 4 is less than $300, so when you need more runs, it makes sense to run the proper amount all at one time. Technical Services will not hook up County equipment to untested or uncertified cabling. Please contact me if you have any questions. Todd Erickson Director of Technical Services Exhibit K Letters From BellSouth Dedicated Technician 9- 16-03: 3:47PM: i • September 15, 2003 To: James L. Roberts County Administrator From: Edward Burr Monroe County BellSouth Dedicated Technician Mr. Roberts, Since moving to Key West in 1982 I have worked with Monroe County in a Supervisory Position and a craft position. I have always enjoyed dealing with Monroe County Government. I have always tried to stay out of personality problems and remain neutral. I have always been conscientious about cost. I believe in using quality materials in adequate amounts. I have done wiring and telephone systems since 1970. In all my time in communications I have never been asked to drive up the cost of the work I do. When I was asked to give a quote for the County Attorney,Todd Erickson is the first person that 1 have encountered that has requested me to do this. I went into his office on 4 different occasions and was told to make it more expensive by adding more equipment, some of which had nothing to do with the job. I got the impression that cost and time is not a consideration. Sincerely, Edward Burr September 4, 2003 To: Patty Sutton From: Ed Burr Subject: Cable Installation Before new Director: Cable installation for computers was always negotiated. Sometimes I would put in the cable other times some one else would. I was usually asked first if I could install the cable and time frame that it needed to be installed. If it could fit within the time frame Specified I would do the cabling. The cable was tested after installation. Our main locations and major jobs I would usually do. After new Director: I was told by the director that he wanted me to devote my time to the phone systems and that he had another company that he wanted to use to do the wiring. He said that he used this company at Hawks Cay and was satisfied with there work. I told the director that was his decision but that all the major locations I Still wanted to do, and large jobs I wanted to be consulted to do. The Library on Flemming street: I told them that I would do the work that they requested. Install a large flexible conduit in the attic for a fiber optic cable, and that David Richardson from facilities maintenance was going to help feed the conduit to me. I ordered the conduit for the library from Graybar which the library paid for. There where several locations that they wanted computer wires run to. I told them that I would install these wires for them and that there would be no cosh to them for any of the work that they requested. The director told me that he did not want me to do the work. The Airport in Marathon: Bob Stone asked if I would do the wiring for two new offices being constructed. I told him that I would do the work and that the cost of materials would have to beQaid for wit a purchase order. After that I was told that anot er company would do the wiring. No other work at the airport was discussed with me. 2798 Overseas Highway: No one talked to me about any wiring at this location I would have done the work at this location at no cost if I was asked. Facilities Maintenance in Key West: I told the director that If he wanted some one else to do the wiring that I did not have a problem with it. County Attorney in Key West: At first I was not consulted about this. Another company was requested to do the work. I did not find out about this job until I was asked to get another quote from another company because the first quote was over ten thousand dollars. I told the director that I wanted to do the work and I would get a quote for cost of materials. The first quote for materials was $5,926.49. I was told that the attorney was willing to spend ten thousand dollars on his first quote an that wasp t t ere some test egwpment an a ox and hound (tone source an amp i ier)that could be or ered to use on the job. I presented the next quote to t e hector or ,36 . . was to tat he wante the quote higher. The final quote given to the director was $ 7,930.17 listed materials, $ 1500.00 in miscellaneous materials, and $ 120.00 for shipping. Final cost was to be $9,550.17. I was later told by the director to order a black box switch part#KV6112FA for $ 1875.01 to be used as miscellaneous material. This equipment is installed in the computer room at 1200 Truman Ave. . Around the first of August I was asked by the director to install wiring at: 500 Whitehead street for first apperance to the sheriff. Cudjoe Fire station to connect to sheriff. Big Pine library to sheriff at tax collector. Marathon Library to county system at 2798 overseas. Marathon sheriff to county system at 2798 overseas. These connections where to connect between county and sheriff and to be installed by the end of September. 2 Exhibit L Purchase Order 238545, Request to Purchase and Quote 9- 9-03; ti :5OAM; RAGE .i PO a; 238544 MONROE :'.ouNTY BOARD OF CnUNTY c: ot•*iis51CNER5.; COUNTY :",AI.,`3 lAX EXEMPT INUMrJER - -- • .._.._.__ ---- •---- PURCHASE ORDER DATE r,C (1_ I P U t• :' H A _ F_ ORDER ! REQUIRED DATE APPROVED DATE Vr:NDQR OOSS7:3 'SHIP TO CF O:_,SPO I NT SOLUTIONS , INC MONROL r.ol 1N TY :61 SW t 1 :OUPT CIRCLE Cul.1NT't' ATTORNEY OFFLCE 500 LJHI•TrEMEAU COURT"r ANNEX--::Rr MIAMI , FL 23174 KEY :,WE-,.;. F•I.. 1,O4 BUYER stay-ssi_rt_t.on er.-ANKF1 NO CONFIRMING NO • PHONE µ ?W5,.,.'7'20--0;;,:'°4.7 TERMS FREIGHT VEND PROD NO I rEM COMMODITY NO QUANTITY UNIT MFA U1 E' UNIT F'c41:r:F: EY'r'F NLED Pr' 1 ,00 ea 99Y $ .I,_ I ns`:r•a.11I and t'.rmi rimer ino ::i.3h1_•gen quad drops 1 SUBTOTAL '�,9F,� L9 FREXE.HT TAX C PURL HASE ORDER TOTAL )hs' • 44) d 1()f) (4.!A44) r: .a .t Z�11 y L 1. a�i�'. .;�a i i i; - I. _ . ! r i:' I i^1 t.:G J rl f ,^7);7,i i R T O i =d. S•'r iR,T W.'7 = i-;r'�.�:� • Tnycji-is ' 9/I 30'dd S i S5Z6zSOE ,Q I DN I SVHOzifld AZNflOO 3OHNOW WO21d 69,0I E0-60-d3S 9- g-03; 11 :50AM: b-16-OS; 111=06AM: 71 * 1/ 2 MAY-is-Os 08e®7 FROM*MONQOS cOpiTY ATTY_OFF IC8 ID.0082803s is PAOB ii2 PURCHASING OFFICE Pik 305.292.4465 , FAX:305-292-4515 __ - REQUEST TO PURCHASE . To: Ptuassinu Office Date: May 16.2003 —1 From(Dept.): COUNTY ATTORNEY Purchasing • • -, • Name: JOHN R.COLLINS By1'O o cif 4/O 3 PhoneBxt: 3478 Account#: 67501/590990 Ship to Location#: 039 Caant/Project#: --, Qty. Unit Prod.# Description • • • Unit Total Acct.# Cost Cost 1 rutano ig a tarsealaigekhtati . $9955.12 gust'drops ...-... • Total S9 ASS.72 . Its nccdvd by: .2003: • Vendor Nsma: CrosaPoint Solutions,Inc. -Vendor#: 008578 RematkslRecomamadatlona: • Admloiahath►eInstructions: Reviewed B % pgr6 Y, � � � Date: S l D3 Purchasing Office: ?,. ' Reviewed ( ) By: Date: MCP 13 naiad WIIMO i S/C HD id S I9 VZ6ZSOC °Q I oN I SHHi?fld AINI1O0 3O?INO1.1'WO213 69 '0 1 E0-60- SEP-09-03 11 .00 PROM:MONROE COUNTY PURCHASING ID:3052924515 PAGE 4/6 I £a j91�o ap►� ��_; 09L5L1 S 9tZ oo�+tptoe 01 P �Ada19�'Tdi1 OOZ 9!`L _ aasOap iado�s�S Z OAF S ' $ ad $ �'E s !O`T.Lp $ AiIM i atL I 2 pyQ1 s •+Ad/AYJ�III��D 1 _� �-0 = Door ss'o� s . i ►tt tma g !1 -- 60� _ • •�8�/9S�►L1rJ�SFPd/affiS t �?Z ; ''NO1t�4�l��3 �5 E ap 60l•l s Poll 7�,Y1t�1�►s10d 9�i 3iS S I o�lid iicfpC J i$ r o Vvt 4a . . , �to7 t�loft f�►�i °a°�P Pa�0p' n1r 'qq�!�a M1 l�Al 3�1 >aoe 91 ed�o�ea iu�ya --$} p hpu 9oro�1L - 'A'1��'3�lp�+q�cR�o�1►.�!roS7��1�`��RLiode�td�s� � . 4'i�11 vF n biqr0 Jo aq aAaesaao�aiM!► 7 d ►ao p!9 i Joddo ap'aorl'svo og»d�rJ fag 11t>�yp�m�R4 R41 W fl ° t 011s`S6t(sof3�l1• • . OrotC'id'�JI��'3 - 9•v�t1, fl01Sl1rq JCL p�� i 9t:1t �Pl�Pte.L'� • . .. .• . >Llee'UN.wuru4 o*av lot Ms t9L �_� . .. • •.• i Rio i r,■ ZflTIrr fJohcn T! COp7/wT in , 2 $'Jtild 1� �Yf Oi�,pt• 07 9i56aBa90e■ar 3�1l.d3O AZLV . z 1[1O O •Ra RA-PL-Awu I Iw Ote !eo-o�-e Ji Exhibit M BOCC Agenda Item D40, February 19, 2003 BOARD OF COUNTY COMMISSIONERS • AGENDA ITEM SUMMARY Meeting Date: February 19,2003 Division: Management Services Bulk Item: Yes x No _ Department: Technical Services AGENDA ITEM WORDING: Approval of Special Service Arrangement Agreement with Insight Global Finance,Inc.to replace existing visual control system at Marathon EOC.The Board of County Commissioners may dispense with the bidding provisions of the ordinance and contract directly for services,goods or Public Works in the case of an emergency.An interruption in the delivery of an essential governmental service.Request of approval of this item includes a request for County Commission to waive county policies that county contracts shall have a limitation on liability in statutory amount($200,000.00). ITEM BACKGROUND:This agreement will eliminate the costly repairs and annual support costs associated with the 11 year old facility. PREVIOUS RELEVANT BOCC ACTION: NIA ' . • • • CONTRACT/AGREEMENT CHANGES:N/A • • STAFF RECOMMENDATIONS: Approval• TOTAL COST: $47,670.03—/5 years BUDGETED: X Yes No COST TO COUNTY: $47,670.03 REVENUE PRODUCING: Yes_ No X AMOUNT PER MONTH Year APPROVED BY: County Atty X OMB/Purchasing X Risk Management X DEPARTMENT DIRECTOR APPROVAL: 4' d Todd Erickson DIVISION DIRECTOR APPROVAL: `Yr'V�f �./1c Z,di4 ) • Sheila Barker DOCUMENTATION: Included x To Follow Not Required DISPOSITION: AGENDA ITEM##_y40_ • Revised 2/27/01 li Exhibit N March 7, 2003 Memorandum ��l 11 • '^ I',I *". BOARD OF COUNTY COMMISSIONERS MAYOR Dixie M.spehar,District 1 OUNTY o MONROE I. .,, Mayor Pro Tern,Murray E.Nelson,District 5 "Er 1 George Neugent,District 2 294-184 r.., �.y. . Al �� , _s,.,1 �: , Charles"sonny McCoy,District 3 David P.Rice,District 4 Office of the County Attorney • PO Box 1026 Key West,FL 33041-1026 ' -- • �" ) 305/292-3470-Phone 305/292-3516-Fax MEMORANDUM TO: Lisa Druckemiller Technical Services FROM: Suzanne A. Hutton TT' Assistant County Attorney DATE: Margh 7,. SUBJECT: Insight Global Finance, Inc. Please be advised that the Insight Global Finance, Inc. contract placed before the County Commission at the February 19, 2003 meeting is not the same as the documents which were submitted to the Clerk of Court for execution. The specific differences require re- submission to the County Commission. The specific differences are the equipment schedule which was previously submitted Incomplete (with a blank for the number of monthly payments, the amount of the monthly payment, and quantity and description to be filled in) and Schedule A. In the documents submitted to the County Commission there is no number in any of the Equipment Schedule boxes in the section starting with "Number of Monthly Payments." Additionally, the words "SEE ATTACHED SCHEDULE A" and the equipment location were not filled in on the items submitted to the County Commission. If the number i of monthly payments multiplied by the monthly payment amount equaled the amount that was placed on your Agenda Item Summary and the location of the equipment were as indicated on your Agenda Item Summary, the fact that this Information was not included in the initial form would not affect our ability to execute the document. However, the number -- of monthly payments multiplied by the monthly payment amount equals a little more than $55,000, which is different than the total dollar value of contract of $47,670.03 which you have Indicated on the Agenda Item Summary. Further, that amount is different than what appears on the next page, showing a total of $52,390. I would note that the next page, the Schedule A, showing the description of products was not Included in the Agenda Item Summary either. • Also, the correct location of the equipment (Marathon EOC, according to agenda summary) needs to be placed in the section of the Equipment Schedule requesting location. Accordingly, I am sending you a copy of the originals, and returning the two originals to Belle, pending the County Commission approving the agreement as revised with the effective date of the prior approval February 19, 2003. If you have any questions, please call. Enclosures cc: Belle DeSantis ADDENDUM TO MUNICIPAL MASTER LEASE AGREEMENT This Addendum To Municipal Master Lease Agreement forms and is made a part of that certain Municipal Master Lease Agreement between Insight Global Finance, Inc. and County of Monroe dated • . Capitalized terms used herein but not defined herein will have the same meaning given to them in the Municipal Master Lease Agreement. With regards to Section(s): 7. This section is deleted in its entirety. A new section 17. Is added as follows: "17. ETHICS CLAUSE: Contractor warrants that he/it has not employed, retained or otherwise had act on his/its behalf any former County officer or employee in violation of Section 2 of Ordinance No. 10-1990 or any County officer or employee in violation of Section 3 of Ordinance No. 10-1990. For breach or violation of this provision the County may, in its discretion, terminate this contract without liability and may also, in its discretion, deduct from the contract or purchase price, or otherwise recover, the full amount of any fee, commission, percentage, gift, or consideration paid to the former County officer or employee." A new section 18. Is added as follows: "18. PUBLIC ENTITY CRIME STATEMENT: A person or affiliate who has been placed on the convicted vendor list following a conviction for public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, for CATEGORY TWO for a period of 36 months from the date of being placed on the convicted vendor list." All other terms and conditions of the Municipal Master Lease Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum to Municipal Master Lease Agreement on , 2003. Insight Global Finance, Inc. County of Monroe By: ac.C�.ci By: • Title: Y O1404.1 .�ce'.�. Wt7 S-3-pry Title: 1 • • February 3,2003 Insight Global Finance, Inc. 444 Scott Drive Bloomingdale, IL 60108 Attention: Ron Taucher Re: Attached Lease No. � I��b (the"Lease") Ladies and Gentlemen: I am legal counsel for Monroe County (Lessee), and I am familiar with the above-referenced Lease by and between the Lessee a Insight Global Finance, Inc. ("company"). Based upon my examination of the Lease, the information statement(s) required for purposes of Section 149(e) of the Interr Revenue Code of 1986, as amended (the "Code") and such other documents, records and papers as I deem to be relevant ai necessary as the basis for my opinion set forth below,it is my opinion that: 1. The Lessee is a State or a political subdivision thereof, as those terms are used In Section 103 of the Code, and is authorized the applicable Constitution and laws to enter into the transaction(s) contemplated by the Lease and to carry out its obligatioi thereunder. • 2. Lessee's obligation(s)under the Lease is a State or local bond within the meaning of Section 103 of the Code. 3. The Lease and other related documents have been duly authorized, executed and delivered by Lessee and constitute valid,leg and binding agreements enforceable against Lessee in accordance with its terms. 4. No further approval, consent or withholding of objections is required from any Federal, state or local governmental authority wi respect to the entering into or the performance by the Lessee of the Lease and the transaction(s)contemplated hereby. 5. The entering into and performance of the Lease and other related documents will not violate any judgment, order, law regulation applicable to the Lessee or result in any breach of, or constitute a default under, any instrument or agreement bindir upon Lessee or result In the creation of any lien, charge, security interest or other encumbrance upon any assets of the Lessee the Equipment defined in the Lease),other than those createdbythe Lease. 1 i (as 6. There are no actions, suits or proceedings pending or threatened against or affecting the Lessee in any court or before ar governmental commission, board or authority that, if adversely determined, would have a material adverse effect on the ability the Lessee to perform its obligation(s)under the Agreement. 7. The Equipment is tan tangiblepersonal propertyand, when subject to use bythe Lessee, will not be or become a fixture or rel 9� j property under the laws of the state where the equipment is being used by the Lessee. 8. All required public bidding procedures regarding an award to your company of the transaction(s) contemplated under the Leas have been properly and completely followed by the Lessee. 9. The Lessee shall be the only entity to own,operate and use the Equipment during the Term (as defined in the Lease). 10. The Lease does not constitute, and is not expected to become, an arbitra9e bond within the meaning of Section 148 of the Codi or a private activity bond within the meaning of Section 141 of the Code • Counsel By: Title: Date: • 171004 -3- -.Roo c., Ins' ht Global Finance, Inc. DEAR CUSTOMER:This Master Lease Agreement("Master Lease")contains the terms of your agreement with us. The words You,Your and Lessee mean you,o customer. The words We,Us,Our and the Lessor,mean us,Insight Global Finance,Inc. I � _ I. EQUIPMENT LEASED: We agree to lease to you and you agree to lease from us the equipment ("Equipment") identified in the equipment schedule( ("Schedule")executed in accordance with this Master Lease. Each Schedule shall incorporate the terms and conditions of this Master Lease,and shall include suc other terms as we shall agree upon. Each Schedule is a separate lease,independent of all other Schedules. In the event of a conflict between this Master Lease ar the terms of a Schedule, the terms of the Schedule shall control. The word "Lease"when used in this Master Lease shall mean this Master Lease and respectie Schedule(s). 2. TERM,RENT,&PURCHASE ORDER:This Master Lease shall begin on the date set forth above and shall continue in effect so long as any Schedule remains i effect. You promise to make all payments due under the Lease according to the terms set forth in the Schedule. You agree that this Lease is a net lease which ma not be terminated or canceled;that,except as provided in Section 15,you have an unconditional obligation to make all payments due under the Lease,and that yo may not withhold,set off or reduce such payments for any reason.You authorize us to purchase the Equipment from supplier ("Supplier"). You will arrange for th delivery of the Equipment. When you receive the Equipment,you agree to inspect it to determine if it is in good working order. 3. ASSIGNMENT: YOU MAY NOT SELL, PLEDGE, TRANSFER, ASSIGN OR SUBLEASE THE EQUIPMENT OR THIS LEASE. We may sell, assign c transfer all or any part of this Lease and/or the Equipment. During the term of this Master Lease, Lessee shall keep,or cause to be kept,a complete and accurat record of all such assignments in form necessary to comply with Section 149 of the Internal Revenue Code 1986,as amended(the"Code"). For this purpose,Lesse appoints Lessor to act as its registration agent,which appointment Lessor hereby accepts. Lessor agrees on Lessee's behalf to maintain records of all assignments Lessee agrees,if so requested,to acknowledge each such assignment in writing within 15 days after request therefor,but such acknowledgement shall in no way b deemed necessary to make any assignment effective.The new Lessor will-have the same rights that we have, but will not have to perform any of our obligations You agree that you will not assert against the new Lessor any claims,defenses or set-offs that you may have against us. 4. WARRANTY: The Equipment covered by this Lease is covered by the limited warranties in effect at the time the Equipment is delivered,on standard terms an( conditions supplied with each shipment of Equipment and which are incorporated herein by this reference. 5. TAXES,MAINTENANCE,& INSPECTION: The parties to Lease contemplate that the Equipment will be used for your governmental or proprietary purpose and,therefore,that the Equipment will be exempt from all taxes presently assessed and levied with respect to personal property. Nevertheless, if the use,possessior -J or acquisition of the Equipment is determined to be subject to taxation,you shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the Equipment. You agree to use, operate and maintain the Equipment in accordance with all laws, regulations and ordinances and in accordance with the provision of any policies of insurance covering the Equipment. You agree to keep the Equipment in good repair,working order and condition (ordinary wear and tear excepted)and house the same in suitable shelter, and to permit us or our assigns to inspect the Equipment at any time and to otherwise protect its interests therein. You shall use the Equipment in a careful and proper manner and only for the purpose contemplated by the manufacturer. 6. LOSS OR DAMAGE;INSURANCE: You are responsible for any loss,theft or destruction of,or damage to,the Equipment(collectively"Loss")from any cause, whether or not insured,until the Equipment is delivered to us at the end of this Lease. You are required to make all lease payments even if there is a Loss.You must notify us in writing immediately of any Loss. You agree to keep the Equipment insured for its full replacement value against any type of Loss,and name us as loss payee until the Lease is paid in full.If Lessee is self-insured with respect to the Equipment,Lessee shall maintain during the term of this Master Lease an actuarially sound self-insurance program in form satisfactory to Lessor and shall provide evidence thereof in form and substance satisfactory to Lessor. 7. LATE CHARGES: If any payment is not made when due,you agree to pay a late charge at the rate of ten percent(10%)of such late payment and each month thereafter,and a finance charge of 1.33%on any unpaid delinquent balance,but in no event greater than the maximum interest rate allowable under applicable law. 8. SECURITY INTEREST: You grant us a security interest constituting a first lien on the Equipment (including any replacements, substitutions, additions, attachments and proceeds). You will deliver to us signed financing statements or other documents we request in order to perfect our security interest in the Equipment.You appoint us or our agent as attorney in fact to execute,deliver and record financing statements on your behalf. 9. DEFAULT:Each of the following is a"Default"under this Master Lease; (a)you fail to pay any lease payment or any other payment when due,(b)you do not perform any of your other obligations under this Lease or in any other agreement with us and this failure continues for 10 days after we have notified you of it,(c) you become insolvent,you dissolve or are dissolved,you fail to pay your debts as they mature,you assign your assets for the benefit of your creditors,or you enter (voluntarily or involuntarily) any bankruptcy or reorganization proceeding, (d) any certificate, statement, representation, warranty or audit contained herein or heretofore or hereafter furnished with respect hereto by or on behalf of Lessee proves to have been false in any material respect at the time as of which the facts therein set forth were stated or certified or(e)by Lessee having omitted any substantial contingent or unliquidated liability or claim against Lessee.. 10. REMEDIES:If a Default occurs,we may do one or more of the following;(a)we may cancel or terminate this Lease or any or all other agreements that we have entered into with you;(b)we may require you to immediately pay us all lease payments due or to become due with respect to any or all Leases during the fiscal year 1, in which the Default occurs,whereupon such lease payments shall be immediately due and payable;(c)we may require you to deliver the Equipment to us as set forth in Section 16; (d)we or our agent may peacefully repossess the Equipment without court order and you will not make any claims against us for damages or trespass or any other reason;and(e)we may exercise any other right or remedy available at law or in equity. You agree to pay all of our costs of enforcing our rights against you, Including reasonable attorneys' fees and costs. If we take possession of the Equipment, we may sell or otherwise dispose of it with or without notice,at a public or private sale, and apply the net proceeds(after we have deducted all costs related to the sale or disposition of the Equipment) to the amounts that you owe us. You agree that if notice of sale is required by law to be given, 10 days notice shall constitute reasonable notice. You will remain responsible for any amounts that are due after we have applied such net proceeds. All our remedies are cumulative and are in addition to any other remedies provided for by law and may be exercised either concurrently or separately. Any failure or delay by us to exercise any right shall not operate as a waiver of that - right,any other rights or future rights or the right to modify the terms of this Lease. II. CURRENT EXPENSE: The obligations of Lessee, including its obligation to pay the lease payments due in any fiscal year during the term of a Lease, shall constitute a current expense of Lessee for such fiscal year and shall not constitute an indebtedness of Lessee within the meaning of the constitution and laws of the state in which Lessee is located. Nothing herein shall constitute a pledge by Lessee of any taxes or other moneys (other than moneys lawfully appropriated from time to time by or for the benefits of Lessee for this Master Lease)to the payment of any lease payments due under a Lease. • - 12. INDEMNIFICATION: You are responsible for and agree to indemnify and hold us harmless from any and all (a) losses,damages,penalties,claims, suits ant actions(collectively"Claims"),caused by or related to the installation,ownership,use, lease,or possession of the Equipment and(b)all costs and attorneys' fee incurred by us relating to any Claim.You agree to reimburse us for and if we request, to defend us at your own cost and expense,against any Claims.You agree tha your obligations under this Section 12 shall survive the termination of this Lease. 13.MISCELLANEOUS: (a)Choice of Law. This Lease shall be governed by the laws of the State of the Lessee(without regard to the conflict of law principles o �I such state).(b)Entire Agreement. The Lease constitutes the entire agreement between you and us and supersedes all prior agreements,negotiations and purchase orders. (c) Enforceability. If any provision of this Lease is unenforceable, illegal or invalid, the remaining provisions shall continue to be effective. (d - Amendment. This Lease may not be modified or amended except in writing signed by you and us.You agree however,that we are authorized,without notict to you,to supply missing information or correct obvious errors in the Lease. (e)Usury. It is the express intent of both of us not to violate any applicable usur; laws or to exceed the maximum amount of interest permitted to be charged or collected by applicable law,and any excess payment as determined by court order will be applied to the lease payments in inverse order of maturity,and any remaining excess will be refunded to you. (I)Notice. All notices shall be in writing ant shall be delivered to the appropriate party personally,by private courier,by facsimile transmission or by mail,postage prepaid,at its address shown herein or to suet other address as directed in writing by such party. 14.TITLE;LOCATION:We are the owner of the Equipment.Legal title of the Equipment shall be with us. You agree to keep the Equipment free from liens and encumbrances.You agree that this is a true lease,however,if this transaction is deemed to be a lease intended for security,you grant us a security interest in the Equipment(including any replacements,substitutions,additions,attachments and proceeds).You agree to deliver to us signed financing statements or other documents that we request to protect our interests in the Equipment.You will keep and use the Equipment only at the address set forth above. You may not move the Equipment without our prior written consent. 15.NON-APPROPRIATION: Lessor and Lessee agree that in the event that prior to the commencement of any of your fiscal years you do not have sufficient funds appropriated to make the payments due under a Lease for said fiscal year,you shall have the option of terminating such Lease as of the date of commencement of such fiscal year by giving us sixty(60)days prior written notice of your intent to cancel such Lease. You covenant and represent to us that(a)you will,to the extent permitted by law include in your budget for each successive fiscal year during the term of each Lease a sufficient amount to permit you to discharge all of your obligations under such Lease,(b)you have budgeted and have available for the current fiscal year sufficient funds to comply with your obligations under each Lease and(c)there are no circumstances presently affecting you that could reasonably be expected to adversely affect your ability to budget funds for the payment of sums due under each Lease. No later than the last day of the fiscal year for which appropriations were made for the payments due under the Lease,you shall return to us all,but not less than all,of the Equipment covered by the affected Lease,at your sole expense. 16. PURCHASE OPTION:You are hereby granted the option to purchase the Equipment subject to this Lease in whole but not in part"as is"and"where is",prior to the scheduled payment of the lease payments due under such Lease,on any lease payment date at a price equal to the purchase option price shown for lease payment date on which such purchase is to be effective under the column entitled"Purchase Option Price" in the applicable Schedule,plus all other payments then due or past due hereunder. To exercise this purchase option,you shall give us irrevocable written notice of your intention to exercise such option and designating the lease payment date on which such purchase is to be effective,which notice shall be delivered to us at least thirty(30)days in advance of the proposed purchase date. We shall then promptly inform you of the Purchase Option Price to be paid on the lease payment date selected by you which Purchase Option Price may include other payments due hereunder,and may be modified to reflect payments arising after the date we so inform you. The purchase option herein granted may be exercised by you whether or not one or more Defaults have occurred and are then continuing at the time of such exercise;provided,however,that the purchase of the Equipment upon the exercise of such option during the continuance of a Default shall not limit,reduce or otherwise affect liabilities or obligations that you may have incurred as a result of such Default. On receipt of the applicable Purchase Option Price in good funds,the applicable Lease shall terminate and we shall deliver to the you - such deeds,termination statements,bills of sale and other documents and instruments as you shall reasonably require to evidence the transfer of all right,title and interest of us in such Equipment to you"as is"and"where is",without warranty,express or implied,except that we shall warrant that such Equipment is free and clear of all liens created by us. • Ii ACCEPTANCE - County Of Monroe (Lessee) Insight Global Finance,Inc. (Lessor) Customer Legal Name • Address 1200 Truman Avenune City Kev West State_FL Zip33040 By:X Date By:X ett:IV i Date 3 -3-0.3 Print Name: Title: Print Name: / /Yleaei kis Title: Lew+te FAX EXECUTION:A fax version of this Lease when received by us shall be binding on you for all purposes as if originally signed. However,the Lease shall only become effective and binding against us when originally signed by us in our corporate office. You agree that the only version of the Lease that is the original for all purposes is the version containing your fax signature and our original signature. If you elect to sign and transmit a Lease by fax,you waive notice of our acceptance of this Lease and receipt of a copy of the originally signed Lease. • ; • EQUIPMENT SCHEDULE # TO MUNICIPAL MASTER LEASE AGREEMENT # M DO Insi ht Global Finance, Inc. Number of 36 Monthly Payment• $l 529.79 Purchase FMV Monthly Payments Option *Plus a, e lllcable taxes to be billed Equipment Dew'iption ('•l{gtuipmcnt'•) • Quantity Description Model Serial 0 SEE ATTACHED SCHEDULE"A" Equipment Location if different from billing address 1200 Truman Avenue City Key West - State FL. Zip 33040 DEARCLIENT:This Schedule incorporates the terms and conditions of the Master Lease referred to above.This Schedule is a separate lease,independent of a other schedules.All capitalized words used in this Schedule shall have the same meanings as used in the Master Lease.The Master Lease and this Schedule contai r 1 the terms of your agreement with us. Please read them carefully and feel free to ask us any questions. I. EQUIPMENT,TERM,RENT,&FEES:We agree to finance the Equipment described above for the number of months and monthly lease payment("Month! Payment")shown above.Each such Monthly Payment shall be comprised of principal and interest components.This Schedule will commence on the date that an of the Equipment is delivered to you("Commencement Date"). Your first Monthly Payment is due 30 days from the Commencement Date,and your remaining Monthly Payments shall be due on the same day of each subsequent month until you have paid all the Monthly Payments due under this Schedule.You authorize u to adjust your Monthly Payment and the equipment description for this Schedule upon confirmation from Supplier that you have ordered additional equipmen within the first 30 days after the Commencement Date, provided that the cost of such additional equipment does not exceed 20% of the cost of the origin Equipment.You agree to pay us a documentation fee of S49.00 each time you execute a schedule or several schedules simultaneously. 2.FAX EXECUTION:A fax version of this Schedule when received by us shall be binding on you for all purposes as if originally signed. However,the Schedule shall only become effective and binding against us when originally signed by us in our corporate office. You agree that the only version of the Schedule that is the original for all purposes is the version containing your fax and our original signature. If you elect to sign and transmit a Schedule by fax,you waive notice of oui acceptance of this Schedule and receipt of a copy of the originally signed Schedule. 3. LESSEE REPRESENTATIONS: By signing this Schedule you confirm that(a) the Equipment will be used for the purpose of performing one or more governmental or proprietary functions of Lessee,(b)you have authorized us to obtain information concerning your credit standing from any credit bureau,reference, or any other person,and(c)you are not in default under the Master Lease as of the date of this Schedule. County Of Monroe (Lessee) Insight Global Finance, Inc. (Lessor) Customer Legal Name Address 1200 Truman Avenue By:X &aC.44 City Key West State_FL_Zip 13040 Title: 1-t.a.44 0/Le ,o,. 'R„ By:X Date Print Name: Adel M4 z.e1'K/S Print Name: Title: Date: 3 -3 -03 f ' Pa&� County Of Monroe Vendor: Lease#171004.1 Schedule"A" Quote Prepared By: RJ Spencer _ f` _"r.•u_.t ,1', .). e i�•-t ` `.;1 ;.-.,_ :� E.a,i „Y,-:-•11`i.i:.s.:.-.•..r ,r ^.7 ..i."rJ °:at" . 'C`�,,. 1 CF-28SRJC8KM TB28/P3-1GB/256MB/30GB/802.11B/56K/10-100/XPPro 10 4,825.00 $48,250.00 2 CF-VEB272AW SKTOP PORT-RhPLICATOR FOR 27/28 _ 10 223.00 $2,230.00 3 CF-VCD271 24X CDR FOR NOTEBOOK 10 191.00 $1,910.00 4 $52,390.00 • ,1 e S 4 s4P IAIITInI c • DELIVERY AND ACCEPTANCE RECEIPT LEASE NO.: 171004 — Lessee: County Of Monroe Lessee certifies that the equipment covered by this Lease has been delivered, inspected, installed, is in good working condition, and is, therefore, accepted for purposes of the Lease. We request that the Lessor pay the vendor for the equipment and we understand that rental payments will commence. X (Authorized Lessee Signature) (Title and Date) • r • Exhibit 0 Revised March 9, 2003 Proposal • • II • County Of Monroe Lease#171004.1 Schedule'A' Enginerring&Pre-Installation S 6,556.48 1200 Truman Avenue Key West FL 33040 Including all required design,drawings,run sheets,instruction manuals,programming,etc. Also includes all fabrication,modification,assembly,rack wiring,programming,etc. some performed at AV contractor's premises Installation $ 6,446.48 Including all on-site installation and wiring,coordination and supervision,testing,checkout,Owner training,etc.performed on the Owners premises. Snaps agreement 1881855.3/State contract labor,design,consulting and engineering hourly rates Total Equipment Cost-From Equipment List-Listed Below $ 30,181.43 Includes cable,connectors,hardware,switches,relays,terminal blocks, panels,etc.,to insure a complete and operational system. QTY 1 Control)Processor QTY 1 10/100 Ethernet Controller OTY 1 12'Color Touch Panel OTY 1 Video Insertion Card OTY 1 XGA Insertion Card • QTY 1 10/100 Ethernet for panel QTY 1 Relay Expansion Card OTY 4 Dual Currant Sensor Module OTY 2 Electrical Control Interface OTY 1 4 Button Screen/Projector wall control , QTY 1 Face Plate QTY 1 Remote Software QTY 5 IR Probe }� OTY 1 Dimming Panel QTY 1 Dimming Panel OTY 1 Master Control(Wall) OTY 2 Slave Controller(Wall) QTY 1 RS232 Interface OTY 1 VC 200 ScanVerter OTY 1VGA Line AMP(Wall) OTY 1 Power Supply QTY 12 Podium/Ceiling Mics Miscellaneous Materials - AVI-GSA Contract number GS-03F-0037M General And Administrative $ 310.98 Including all G&A expenses;Clerical,bonds,shipping,insurance&warranties Grand Tote! 013;4954_ Interest 8.56% Monthly Payment$887.31 Gross Rental Amount$53,238.33 Amortization Table-See Attached Initials Page 1 of 1 1 1, I 1 r , �' Exhibit P E-mail to Audio Visual Innovations and March 9, 2003 Adjusted Proposal Summary by Former Director of Technical Services Page 1 of 1 • 2 2 From: Yaklevich-Vicki seiit::•Wednesday,'Mareti 1'9;.2003.3;49,PM . To: 'smajewski@aviinc.com' Scott—we need this newest quote to totbl1i q =r s• + � Kit- :•le ld tJ?,ey:have told me this' before???%^("$&.$#. anyway:plea Q.,adci; ' •�' -� �f 'a'` r f dt, t'aposal summary in the 1� ' ` } . 4 6 ` grand-tf ta�match the grand total on the. earlier verskd`'ir,'f'thi 'proposal, The a ',punt t�f�?t ��.'�&�S8 that�he g aiding shoulread: "CONTINGENCY This fee shall be a hold-back in the event of unforeseen changes or additions to the system. In the event this fee is unnecessary, the full amount shall be refunded the client." • The grand total should now read$47,67. number:,originally approved by the board. I hope I survive all this Thanksil!ll • Vicki/ch16 • • 8/13/2003 I 9- • Proposal Summary InnovAudioationsVisual 1'txrsa ce For&kg Seen AndHeaid. • Prepared for. Prepared By: Scott J.Majewski Monroe County Florida e;P{ pt�ned:lulalch.9.,2t3: Key West, FL 33040 ro136ia1`.413•' . Project Name: Marathon EOC TOTAL EQUIPMENT COST-From Equipment List $30,181.43 Includes cable,connectors,hardware,switches,relays,terminal blocks,panels,etc.,to Insure a complete and operational system. ENGINEERING AND PRE-INSTALLATION $6,556.48 Including ell required design,drawings,run sheets,instruction manuals,programming,etc.. Also Includes all fabrication,modification, assembly,rack wiring,programming,etc.,some performed at AV contractor's premises. INSTALLATION $6,446.48 Including all on-site installation and wiring,coordination and = supervision,testing,checkout,Owner training,etc.performed on the Owner's premises. TRAVEL $0.00 Includes per diem,hotels,air fare,and other travel related expenses. GENERAL AND ADMINISTRATIVE $310.98 Including all G&A expenses:Clerical,bonds,shipping,insurance and warranties. SUBTOTAL $43,495.37 TAXES 0.00 GRAND TOTAL $43.495 87� WARRANTY - Included One year parts and labor,exclusive from manufacturer warranties. SCOPE OF WORK 1-./ __ Please see attached Scope of Work F �� f7d II Not included: Structural,ceiling, millwork,or AC/heat modifications, HV electrical or conduit. ; I This Entire Document and all Information enclosed including drawings,specifications and designs Is the property of Audio Visual Innovations(AVI). Proprietary information provided to our client or his agents Is for the sole purpose of demonstrating AVI's capabilities and shall be held in confidence. These Materials may not be copied,distributed or disclosed in any way without the sole written permission of an authorized representative of AVI. i1-7 Scott J.Majewski : Sales Engineer Customer Signature Print Date 1 -- - -- D 3 • County Of Monroe ; 1i''j '"` Lease#171004.1 f� f Schedule'A' 9-- Enginerring&Pre-Installation $ 9,320.00 1 r r Truman Avenue Key West FL 33040 Including all required design,drawings,run sheets,instruction manuals,programming,etc. C 5— $ (1� Also includes all fabrication,modification,assembly,rack wiring,programming,etc. T some performed at AV contractors premises Installation = 5,200.00 Coq, 1/P. 48, 0 Including all on-site installation and wiring,coordination and �t l supervision,testing.checkout.Owner training,etc.performed on the Owner's premises. Snaps agreement#88 1855-3/State contract labor,design,consulting and engineering hourly rates -�.. Total Equipment Cost-From Equipment List-Listed Below S Ef5,655.82 • 30 e' , 4-3 Includes cable,connectors,hardware,switches,relays,terminal blocks, panels,etc.,to insure a complete and operational system. - • QTY 1 Control)Processor QTY 1 10/100 Ethernet Controller QTY 1 12'Color Touch Panel QTY 1 Video Insertion Card QTY 1 XGA Insertion Card QTY 1 10/100 Ethernet for panel QTY 1 Relay Expansion Card QTY 4 Dual Currant Sensor Module QTY 2 Electrical Control Interface . QTY 1 4 Button Screen/Projector wall control QTY 1 Face Plate QTY 1 Remote Software QTY 5 IR Probe QTY 1 Dimming Panel QTY 1 Dimming Panel QTY 1 Master Control(Wall) QTY 2 Slave Controller(Wall) QTY 1 RS232 Interface QTY 1 VC 200 ScanVerter QTY 1VGA Line AMP(Wall) QTY 1 Power Supply QTY 12 Podium/Ceiling Mics Miscellaneous Materials GGSA Contract number GS-03F-0037M $ / O, / 9 General And Administrative 3 Including all G&A expenses;Clerical,bonds,shipping,insurance&warranties CONTINGENCY This fee shall be a hold-back in the event of unforseen changes or additionsC$ , o.i � 17q . to the system.In the event this fee is unnecessary the full amount shall be refunded to the client st 6a - Interest 8.56% Monthly Payment$972A7 Gross Rental Amount 858,348.20 Amortization Table-See Attached Initials Page 1 of 1 Exhibit Q BOCC Agenda Item C27, April 16, 2003 li BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: April 16,2003 Division: Management Services Bulk Item: Yes X No — Department: Technical Services AGENDA ITEM WORDING: Approval to rescind Special Service Arrangement Agreement with Insight Global Finance,Inc.to replace existing visual control system at Marathon EOC, approval to waive Purchasing Policy and Procedure and approval of a corrected agreement with Global Insight and Addendum to replace existing visual control system at Marathon EOC,and authorization for Mayor to execute. ITEM BACKGROUND: The previously approved agreement had blanks and a total cost of equipment. When Global Insight provided the equipment list, the total of the list did not match the amount of the approved contract. p PREVIOUS RELEVANT BOCC ACTION: 1.P' Board approved contract approved with Global Insight on February 19,2003. t‘k i>" CONTRACT/AGREEMENT CHANGES: 09 �. tl)} -� Equipment list added,price changed from$47,670.03 to$58,348.20. OP- , p Ur STAFF RECOMMENDATIONS: V"�' Approval as stated abovel TOTAL COST: S58.348.20/5 years BUDGETED: Yes X No COST TO COUNTY: $58,348.20/5 years SOURCE OF FUNDS: Ad Valorem Taxes REVENUE PRODUCING: Yes_ No X AMOUNT PER MONTH Year APPROVED BY: County Atty_ OMB/Purchasing Risk Management DEPARTMENT DIRECTOR APPROVAL: Todd Enckson DIVISION DIRECTOR APPROVAL: çSh4ker \ 0 c14-d) Q DOCUMENTATION: Included X To Follow Not Required DISPOSITION: AGENDA ITEM# Revised 2/27/0I • MONROE COUNTY BOARD OF COUNTY COMMISSIONERS CONTRACT SUMMARY Contract with: Insight Global Contract# Effective Date: April 16,2003 Expiration Date: April 16,2008 Contract Purpose/Description: To repair existing audio visual control system and Marathon EOC Contract Manager. Lisa Druckemiller 5100 Technical Services/5B (Name) (Ext.) (Department/Stop#) for BOCC meeting on 04/16/03 Agenda Deadline: 04/02/03 CONTRACT COSTS Total Dollar Value of Contract: $ 58,348.20 Current Year Portion: $ 5,834.82 Budgeted?Yes® No O Account Codes: 001-06002-530-440- Grant: $ - - - County Match: $ - - - - ADDITIONAL COSTS � Estimated Ongoing Costs: $ __._. For: (Not included in dollar value above) (eg.maintenance,utilities,janitorial,salaries,etc.) . CONTRACT REVIEW Changes Date Out Date In Needed 1p Review {� Division Director YesO No �[� y03— Risk Management 3br YesO No[],7 • 3beio; O.M.B./Purchasing -3 3l 03 YesO No0 — 7 County Attorney .3 J�6(v3 Yes[]Nog,/ 5 NA) Comments: (J/7/3.' 1,04 � azyrii OMB Form Revised 2/27/0l MCP#2 MASTER• LEASE AGREEMENT it171004 Dater[ 13/18/2003 l�[UN7C[iAL Insi ht Global Finance, Inc. DEAR CUSTOMER:This Master Lease Agreement("Master Lease")contains the terms of your agreement with us. The words You,Your and Lessee mean you,our customer. The words We,Us.Our and the Lessor,mean us,Insight Global Finance,Inc. 1. EQUIPMENT LEASED: We agree to lease to you and you agree to lease from us the equipment ("Equipment") identified in the equipment schedule(s) ("Schedule")executed in accordance with this Master Lease. Each Schedule shall incorporate the terms and conditions of this Muter Lease,and shall include such other terms as we shall agree upon. Each Schedule is a separate lease,independent of all other Schedules. In the event of a conflict between this Master Lease and the terms of a Schedule,the terms of the Schedule shall control. The word "Lease"when used in this Master Lease shall mean this Master Lease and respective Schedule(s). 2. TERM,RENT,&PURCHASE ORDER:This Master Lease shall begin on the date set forth above and shall continue in effect so long as any Schedule remains in effect. You promise to make all payments due under the Lease according to the terms set forth in the Schedule. You agree that this Lease is a net lease which may not be terminated or canceled;that,except as provided in Section 15,you have an unconditional obligation to make all payments due under the Lease,and that you may not withhold,set off or reduce such payments for any reason.You authorize us to purchase the Equipment from supplier ("Supplier"). You will arrange for the delivery of the Equipment. When you receive the Equipment,you agree to inspect it to determine if it is in good working order. 3. ASSIGNMENT: YOU MAY NOT SELL, PLEDGE,TRANSFER,ASSIGN OR SUBLEASE THE EQUIPMENT OR THIS LEASE. We may sell,assign or transfer all or any part of this Lease and/or the Equipment. During the terra of this Master Lease,Lessee shall keep,or cause to be kept,a complete and accurate record of all such assignments in form necessary to comply with Section 149 of the Internal Revenue Code 1986,as amended(the"Code"). For this purpose.Lessee appoints Lessor to act as its registration agent,which appointment Lessor hereby accepts. Lessor agrees on Lessee's behalf to maintain records of all assignments. Lessee agrees,if so requested,to acknowledge each such assignment in writing within 15 days after request therefor,but such acknowledgement shall in no way be deemed necessary to make any assignment effective.The new Lessor will have the same rights that we have,but will not have to perform any of our obligations. You agree that you will not assert against the new Lessor any claims,defenses or set-offs that you may have against us. 4. WARRANTY: The Equipment covered by this Lease is covered by the limited warranties in effect at the time the Equipment is delivered,on standard terms and conditions supplied with each shipment of Equipment and which are incorporated herein by this reference. S. TAXES,MAINTENANCE,& INSPECTION: The parties to Lease contemplate that the Equipment will be used for your governmental or proprietary purpose and,therefore,that the Equipment will be exempt from all taxes presently assessed and levied with respect to personal property. Nevertheless,if the use,possession or acquisition of the Equipment is determined to be subject to taxation,you shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the Equipment. You agree to use,operate and maintain the Equipment in accordance with all laws,regulations and ordinances and in accordance with the provision of any policies of insurance covering the Equipment. You agree to keep the Equipment in good repair,working order and condition (ordinary wear and tear excepted)and house the same in suitable shelter,and to permit us or our assigns to inspect the Equipment at any time and to otherwise protect its interests therein. You shall use the Equipment in a careful and proper manner and only for the purpose contemplated by the manufacturer. 6. LOSS OR DAMAGE;INSURANCE: You are responsible for any loss,theft or destruction of,or damage to,the Equipment(collectively"Loss")from any cause, whether or not insured,until the Equipment is delivered to us at the end of this Lease.You are required to make all lease payments even if there is a Loss.You must notify us in writing immediately of any Loss.You agree to keep the Equipment insured for its full replacement value against any type of Lou,and name us as loss payee until the Lease is paid in full.If Lessee is self-insured with respect to the Equipment,Lessee shall maintain during the term of this Master Lease an actuarially sound self-insurance program in form satisfactory to Lessor and shall provide evidence thereof in form and substance satisfactory to Lessor. 7. LATE CHARGES:if any payment is not made when due,you agree to pay a late charge at the rate often percent(10%)of such late payment and each month thereafter,and a finance charge of 1.33%on any unpaid delinquent balance,but in no event greater than the maximum interest rate allowable under applicable law. 8. SECURITY INTEREST: You grant us a security interest constituting a first lien on the Equipment (including any replacements, substitutions, additions, attachments and proceeds). You will deliver to us signed financing statements or other documents we request in order to perfect our security interest in the Equipment.You appoint us or our agent as attorney in fact to execute,deliver and record financing statements on your behalf. 9. DEFAULT:Each of the following is a"Default"under this Master Lease;(a)you fail to pay any lease payment or any other payment when due,(b)you do not perform any of your other obligations under this Lease or in any other agreement with us and this failure continues for 10 days after we have notified you of it.(c) you become insolvent,you dissolve or are dissolved,you fail to pay your debts as they mature,you assign your assets for the benefit of your creditors,or you enter (voluntarily or involuntarily) any bankruptcy or reorganization proceeding, (d) any certificate, statement,representation, warranty or audit contained herein or heretofore or hereafter furnished with respect hereto by or on behalf of Lessee proves to have been false in any material respect at the time as of which the facts therein set forth were stated or certified or(e)by Lessee having omitted any substantial contingent or unliquidated liability or claim against Lessee. 10.REMEDIES:If a Default occurs,we may do one or more of the following;(a)we may cancel or terminate this Lease or any or all other agreements that we have entered into with you;(b)we may require you to immediately pay us all lease payments due or to become due with respect to any or all Leases during the fiscal year in which the Default occurs,whereupon such lease payments shall be immediately due and payable;(c)we may require you to deliver the Equipment to us as set forth in Section 16;(d)we or our agent may peacefully repossess the Equipment without court order and you will not make any claims against us for damages or — trespass or any other reason;and(e)we may exercise any other right or remedy available at law or in equity.You agree to pay all of our costa of enforcing our rights against you,Including reasonable attorneys' fees and costs. if we take possession of the Equipment,we may sell or otherwise dispose of it with or without notice,at a public or private sale,and apply the net proceeds(after we have deducted all costs related to the sale or disposition of the Equipment)to the amounts that you owe us. You agree that if notice of sale is required by law to be given, 10 days notice shall constitute reasonable notice. You will remain responsible for any amounts that are due after we have applied such net proceeds. All our remedies are cumulative and are in addition to any other remedies provided for by law and may be exercised either concurrently or separately. Any failure or delay by us to exercise any right shall not operate as a waiver of that right,any other rights or future tights or the right to modify the terms of this Lease. 11. CURRENT EXPENSE: The obligations of Lessee, including its obligation to pay the lease payments due in any fiscal year during the term of a Lease,shall constitute a current expense of Lessee for such fiscal year and shall not constitute an indebtedness of Lessee within the meaning of the constitution and laws of the state in which Lessee is located. Nothing herein shall constitute a pledge by Lessee of any taxes or other moneys(other than moneys lawfully appropriated from time to time by or for the benefits of Lessee for this Master lease)to the payment of any lease payments due under a Lease. • • 12. INDEMNIFICATION: You are responsible for and agree to indemnify and hold us harmless from any and all(a)losses,damages,penalda,claims,suits and actions(collectively"Claims'),caused by or related to the installation,ownership,use,lease,or possession of the Equipment and(b)all costs and attorneys'fees incurred by us relating to any Claim.You agree to reimburse us for and if we request,to defend us at your own cost and expense,against any Claims.You agree that - your obligations under this Section 12 shall survive the termination of this Lease. 13.MISCELLANEOUS: (a)Choice of Law. This Lease shall be governed by the laws of the State of the Lessee(without regard to the conflict of law principles of such state).(b)Entire Agreement. The Lease constitutes the entire agreement between you and us and supersedes all prior agreements,negotiations and purchase orders. (e) Enforceability. If any provision of this Lease is unenforceable, illegal or invalid, the remaining provisions shall continue to be effective. (d) Amendment. This Lease may not be modified or amended except in writing signed by you and us.You agree however,that we are authorized,without notice to you,to supply missing Information or correct obvious In the Lease. (e)Usury. It is the express intent of both of us not to violate any applicable usury laws or to exceed the maximum amount of interest permitted to be charged or collected by applicable law,and any excess payment as determined by court order, wilt be applied to the lease payments in inverse order of maturity,and any remaining excess will be refunded to you. (I)Notice. All notices shall be in writing and shall be delivered to the appropriate party personally,by private courier,by facsimile transmission or by mail,postage prepaid,at its address shown herein or to such other address as directed in writing by such party. 14.TITLE;LOCATION:We are the owner of the Equipment.Legal title of the Equipment shall be with us. You agree to keep the Equipment free from liens and encumbrances.You agree that this is a true lease,however,if this transaction is deemed to be a lease intended for security,you grant us a security interest in the Equipment(including any replacements,substitutions,additions,attachments and proceeds).You agree to deliver to us signed financing statements or other documents that we request to protect our interests in the Equipment You will keep and use the Equipment only at the address set forth above. You may not move the Equipment without our prior written consent. 15.NON-APPROPRIATION:Lessor and Lessee agree that in the event that prior to the commencement of any of your fiscal years you do not have sufficient Rinds appropriated to make the payments due under a Lease for said fiscal year,you shall have the option of terminating such Lease as of the date of commencement of such fiscal year by giving us sixty(60)days prior written notice of your intent to cancel such Lease. You covenant and represent to us that(a)you will,to the extent permitted by law include in your budget for each successive fiscal year during the term of each Lease a sufficient amount to permit you to discharge all of your - obligations under such Lease,(b)you have budgeted and have available for the current fiscal year sufficient funds to comply with your obligations under each Lease and(c)there are no circumstances presently affecting you that could reasonably be expected to adversely affect your ability to budget funds for the payment of sums due under each Lease. No later than the last day of the fiscal year for which appropriations were made for the payments due under the Lease,you shall return to us all,but not less than all,of the Equipment covered by the affected Lease,at your sole expense. 16.PURCHASE OPTION:You are hereby granted the option to purchase the Equipment subject to this Lease in whole but not in part"as is"and"where is",prior to the scheduled payment of the lease payments due under such Lease,on any lease payment date at a price equal to the purchase option price shown for lease payment date on which such purchase is to be effective under the column entitled"Purchase Option Price"in the applicable Schedule,plus all other payments then due or past due hereunder. To exercise this purchase option,you shall give us irrevocable written notice of your intention to exercise such option and designating the lease payment date on which such purchase is to be effective,which notice shall be delivered to us at least thirty(30)days in advance of the proposed purchase date. We shall then promptly inform you of the Purchase Option Price to be paid on the lease payment date selected by you which Purchase Option Price may include other payments due hereunder,and may be modified to reflect payments arising after the date we so inform you. The purchase option herein granted may be exercised by you whether or not one or more Defaults have occurred and are then continuing at the time of such exercise;provided,however,that the purchase of the Equipment upon the exercise of such option during the continuance of a Default shall not limit,reduce or otherwise affect liabilities or obligations that you may have incurred as a result of such Default. On receipt of the applicable Purchase Option Price in good funds,the applicable Lease shall terminate and we shall deliver to the you such deeds,termination statements,bills of sale and other documents and instruments as you shall reasonably require to evidence the transfer of all right.title and interest of us in such Equipment to you"as is"and"where is",without warranty,express or implied,except that we shall warrant that such Equipment is free and clear of all liens created by us. • ACCEPTANCE County Of Monroe (Lessee) Insight Global Finance,Inc.(Lessor) Customer Legal Name Address lloaTruman-Avenus City Ks,West State FL Zip 3304Q y,/, By:;f Date Ely:y:X t..&Zi z�7 Date 3121103 Print Name: Title: Print Name:fd4 Me Le.tic L FAX EXECUTION:A fax version of this Lease when received by us shall be binding on you for all purposes as if originally signed. However,the Lease shall only become effective and binding against us when originally signed by us in our corporate office. You agree that the only version of the Lease that is the original for all purposes is the version containing your fax signature and our original signature. If you elect to sign and transmit a Lease by fax,you waive notice of our acceptance of this Lease and receipt of a copy of the originally signed Lease. APPROVED AS TO FO•M AND I. •1 SUFFIC a -1111111!ZANNc A. t TTO J/L4/3 ADDENDUM TO MUNICIPAL MASTER LEASE AGREEMENT This Addendum To Municipal Master Lease Agreement forms and is made a part of that certain Municipal Master Lease Agreement between Insight Global Finance, Inc. and County of Monroe dated March I? too3 . Capitalized terms used herein but not defined herein will have the same meaning given to them in the Municipal Master Lease Agreement. With regards to Section(s): -- 7. This section is deleted in its entirety. A new section 17. is added as follows: "17. ETHICS CLAUSE: Contractor warrants that he/it has not employed, retained or n otherwise had act on his/its behalf any former County officer or employee in violation of 1 Section 2 of Ordinance No. 10-1990 or any County officer or employee in violation of Section 3 of Ordinance No. 10-1990. For breach or violation of this provision the County c may, in its discretion, terminate this contract without liability and may also, in its discretion, deduct from the contract or purchase price, or otherwise .recover, the full•amount of any fee, commission, percentage, gift, or consideration paid to the former County officer or employee." A new section 18. is added as follows: "18. PUBLIC ENTITY CRIME STATEMENT: A person or affiliate who has been placed f on the convicted vendor list following a conviction for public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not act business with any public entity In excess of the threshold amount provided in Se�j Er • .7.017, for CATEGORY TWO for a period of 36 months from the date of being pl X` the convicted vendor list." All other terms and conditions of the •l pal Master Lease Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the pa ereto have executed this Addendum to Municipal Master Lease Agreement on , 2003. Insight G lobal Finance, Inc. County of Monroe By: By: ��tt,,,,��Title: (Z 26die"7, 2 Title: APPROVED AS TO FORM AN GAL SUFF BY A i` ?ANNE A. HUTTON ' - 072 03 11 I EQUIPMENT SCHEDULE # 1 TO MUNICIPAL MASTER LEASE AGREEMENT # 171004 Insi ht Global Finance, Inc. Number of t60 Monthly Payment• $972.47 Purchase IFMV Monthly Payments Option I *Plus a.•Ileable taxes to be biUed El uipntcnl ("Equi ntcnt"1 Quantity Description Model Serial A See Attahscd Sehedstle"A" Equipment Location if different from billing address City State Zip DEARCLIENT:This Schedule incorporates the terms and conditions of the Master Lease referred to above.This Schedule is a separate lease,independent of all other schedules.All capitalized words used in this Schedule shall have the same meanings as used in the Master Lease.The Master Lease and this Schedule contain the terms of your agreement with us. Please read them carefully and feel free to ask us any questions. 1. EQUIPMENT,TERM,RENT,&FEES:We agree to finance the Equipment described above for the number of months and monthly lease payment("Monthly Payment')shown above.Each such Monthly Payment shall be comprised of principal and interest components.This Schedule will commence on the date that any of the Equipment is delivered to you("Commencement Date"). Your first Monthly Payment is due 30 days from the Commencement Date,and your remaining Monthly Payments shall be due on the same day of each subsequent month until you have paid all the Monthly Payments due under this Schedule.You authorize us to adjust your Monthly Payment and the equipment description for this Schedule upon confirmation from Supplier that you have ordered additional equipment within the first 30 days after the Commencement Date, provided that the cost of such additional equipment does not exceed 20%of the cost of the original Equipment.You agree to pay us a documentation fee of S49.00 each time you execute a schedule or several schedules simultaneously. 2.FAX EXECUTION:A tax version of this Schedule when received by us shall be binding on you for all purposes as if originally signed. However,the Schedule shall only become effective and binding against us when originally signed by us in our corporate office. You agree that the only version of the Schedule that is the original for all purposes is the version containing your fax and our original signature. If you elect to sign and transmit a Schedule by fax,you waive notice of our -1 acceptance of this Schedule and receipt of a copy of the originally signed Schedule. 3. LESSEE REPRESENTATIONS: By signing this Schedule you confirm that(a)the Equipment will be used for the purpose of performing one or more governmental or proprietary functions of Lessee,(b)you have authorized us to obtain information concerning your credit standing from any credit bureau,reference, or any other person,and(e)you are not in default under the Master Lease as of the date of this Schedule. I ' . i County Of Monroe (Lessee) Insight Global Finance,Inc. (Lessor) Customer Legal Name Address IZ00 Tnmwn Avenue By:X City Key West State f Zip_31040 Title: // � By:X Date Print Name: / M4 LG/kls Print Name: Title: Date: 3 j2 f1 p J • • March 19,2003 Insight Global Finance,Inc. 444 Scott Drive Bloomingdale,IL 60108 Attention:Ron Toucher Re: Attached Lease No. 171004 (the"Lease") Ladies and Gentlemen: I am legal counsel for Monroe County (Lessee), and I am familiar with the above-referenced Lease by and between the Lessee and Insight Global Finance,Inc.("company"). Based upon my examination of the Lease, the information statement(s) required for purposes of Section 149(e) of the Internal Revenue Code of 1986, as amended (the "Code") and such other documents, records and papers as I deem to be relevant and necessary as the basis for my opinion set forth below,it is my opinion that: 1. The Lessee is a State or a political subdivision thereof, as those terms are used in Section 103 of the Code,and Is authorized by the applicable Constitution and laws to enter into the transaction(s) contemplated by the Lease and to carry out Its obligations thereunder. 2. Lessee's obligation(s)under the Lease is a State or local bond within the meaning of Section 103 of the Code. 3. The Lease and other related documents have been duly authorized, executed and delivered by Lessee and constitute valid,legal and binding agreements enforceable against Lessee in accordance with its terms. 4. No further approval, consent or withholding of objections is required from any Federal, state or local governmental authority with respect to the entering Into or the performance by the Lessee of the Lease and the transaction(s)contemplated hereby. 5. The entering into and performance of the Lease and other related documents will not violate any judgment, order, law or regulation applicable to the Lessee or result in any breach of, or constitute a default under, any instrument or agreement binding upon Lessee or result in the creation of any lien,charge,security interest or other encumbrance upon any assets of the Lessee or the Equipment(as defined in the Lease),other than those created by the Lease. 6. There are no actions, suits or proceedings pending or threatened against or affecting the Lessee in any court or before any governmental commission, board or authority that, if adversely determined,would have a material adverse effect on the ability of the Lessee to perform its obligation(s)under the Agreement. 7. The Equipment Is tangible personal property and, when subject to use by the Lessee, will not be or become a fixture or real property under the laws of the state where the equipment is being used by the Lessee. 8. All required public bidding procedures regarding an award to your company of the transaction(s) contemplated under the Lease have been properly and completely followed by the Lessee. 9. The Lessee shall be the only entity to own,operate and use the Equipment during the Term(as defined in the Lease). 10. The Lease does not constitute, and is not expected to become, an arbitrage bond within the meaning of Section 148 of the Code or a private activity bond within the meaning of Section 141 of the Code A �� // 5[.c Xet sin e A. flee 79 z� - Counsel By: Ti le: S',�Le��Jc•� Date: 3,4 i/p __ • Proposal Summary AT I AudtoVisual Innovations Yo rStamFortletigSteaAidNut Prepared for. Prepared By: Scott J.Mejewskl Monroe County Florida Date Prepared: March 9,2003 Key West, FL 33040 Proposal No.: Project Name: Marathon EOC TOTAL EQUIPMENT COST-From Equipment List $30,181.43 includes cable,connectors,hardware.switches,relays,terminal blocks,panels.etc..to insure a complete and operational system. ENGINEERING AND PRE-INSTALLATION 68,556.48 Including all required design,drawings,run sheets,instruction manuals,programming,etc.. Also includes ail fabrication,modification, assembly,rack wiring,programming.etc.,some performed at AV contractor's premises. INSTALLATION $8,448.48 Including all on-site Installation and wiring,coordination and supervision,testing,checkout,Owner training,etc.performed on the Owner's premises. TRAVEL $0.00 Includes per diem,hotels,air fare,and other travel related expenses. GENERAL AND ADMINISTRATIVE $310.98 Including all 0 IL A expenses:Clerical,bonds,shipping,insurance and warranties. CONTINGENCY $4,174.66 This fee shall bo a hold-back in the event of unl'orseen changes or additions to the system. In the event this fee Is unnecessary,the full amount of the contingency foe will be refunded to client SUBTOTAL $47,670.03 TAXES $0.00 GRAND TOTAL $47,670.03 WARRANTY Included One year parts and labor,exclusive from manufacturer warranties. SCOPE OF WORK Please see attached Scope of Work Not Included: Structural,ceiling,millwork,or AC/heat modifications,HV electrical or conduit. This Entire Document and all Information enclosed Including drawings,specifications and designs is the property of Audio Innovations(AVI).Proprietary Information provided to our client or his agents Is for the sole purpose of demonstrating AVrs capabilities and shall be held in confidence.These Materials may not be copied,distributed or disclosed in any way without the sole written permission of an authorized representative of AVI. Sco7tt'J.Majewski Sales Englnee Mel) EPLVC,Scirl 31347 Customer Si attire Print Date . County Of Monroe Lease 1171004.1 Schedule"A ... - � ..r ter?,:-^.` c 'A_y:�c.a-. .=� Enginerring&Pre-Installation $ 6,556.46 1200 Truman Avenue Key West FL 33040 Including al required design.drawings.run sheets.Instruction manuals,programming,etc. Also includes all fabrication,modification,assembly,rack wiring,programming,etc. I ,at some performed at AV contractors premises • Installation ; 6.446.48 Including all on-sile installation and wiring.coordination and supervision,testing,checkout.Owner training.etc.performed Le7/ 27 on the Owner's premises. Snaps agreement 1681855.3/State contract labor,design,consulting and engineering hourly rates Total Equipment Cost,From Equipment List-Listed Below ; 30.181.43 Includes cable,connectors,hardware,switches,relays,terminal blocks, a 9 4 'C.3 panels,etc.,to insure a complete and operational system. QTY 1 Control Processor QTY 1 1 W100 Ethernet Controller QTY 1 12-Color Touch Panel QTY 1 Video Insertion Card CITY 1 XGA Insertion Card QTY 1 1W100 Ethernet for panel OTY 1 Relay Expansion Card OTY 4 Dual Currant Sensor Module QTY 2 Electrical Control Interface QTY 1 4 Button Saeen/Projedor wall control QTY 1 Face Plate QTY 1 Remote Software QTY 5 IR Probe OTY 1 Dimming Panel OTY 1 Dimming Panel OTY 1 Master Control(WaU) QTY 2 Slave Controller(Wall) QTY 1 RS232 Interface QTY 1 VC 200 ScanVerter QTY 1VGA Line AMP(Wall) QTY 1 Power Supply OTY 12 Podium/Cefling Mica . Miscellaneous Materials AVI-GSA Contract number GS-03F-0037M General And Administrative ; 310.98 'f/5I . / Including all G&A expenses;Clerical,bonds,shipping,insurance&warranties CONTINGENCY This fee shall be a hold-back in the event of unforseen changes or additions ; 4,174.66 • to the system.In the event this fee is unnecessary the full amount S 0o O - p shall be refunded to the client Grand Total $47,670.03 Interest 6.56M Monthly Payment$872.47 Gross Rental Amount$58,348.20 Amortization Table-Ste Attached In� Page 1 of 1 DELIVERY AND ACCEPTANCE RECEIPT LEASE NO.: 171004. Lessee: County Of Monroe Lessee certifies that the equipment covered by this Lease has been delivered, inspected, installed, is in good working condition, and is, therefore, accepted for purposes of the Lease. We request that the Lessor pay the vendor for the equipment and we understand that rental payments will commence. X (Authorized Lessee Signature) (Title and Date) 03/19/2003 Page 1 County of Monroe Amortization Table Compound Period ' Monthly Nominal Annual Rate ....: 8.680 % • Effective Annual Rate...: 8.904 % Periodic Rate • 0.7133 % Daily Rate • 0.02345 % CASH FLOW DATA Event Start Date Amount Number Period End Date 1 Loan 1 7 2 Payment 60 Monthly 03/012008 AMORTIZATION SCHEDULE-Normal Amortization Data Payment Interest Principal Balance Loan 04/01/2003 47,870.03 1 04/012003 972.47 0.00 972.47 48,897.58 2 05/01/2003 972.47 333.12 839.35 48,058.21 3 081012003 972.47 328.58 843.91 45,414.30 4 07/012003 972.47 323.98 848.51 44,785.79 5 08/012003 972.47 319.34 853.13 44,112.88 -l' 8 09/01/2003 972.47 314.88 857.79 43,454.87 i • 7 10/012003 972.47 309.98 882.49 42,792.38 8 11/012003 972.47 305.28 887.21 42,125.17 9 12/012003 972.47 300.50 871.97 41,453.20 2003 Totals 8,752.23 2,535.40 8,218.83 10 01/012004 972.47 296.71 878.78 40,778.44 11 02/012004 972.47 290.88 681.59 40,094.85 12 03/012004 972.47 288.02 888.45 39,438.40 13 04/01/2004 972.47 281.12 891.36 38,717.05 14 05/012004 972.47 278.19 898.28 38,020.77 15 08/012004 972.47 271.22 701.25 37,319.62 18 07/01/2004 972.47 288.22 708.25 38,813.27 17 08/01/2004 972.47 281.18 711.29 35,901.98 r-- 18 09/01/2004 972.47 258.11 718.38 36,185.82 19 10/012004 972.47 251.00 721.47 34,484.15 - 2011/012004 .972.47 245.86 728.82 33,737.63 21 121012004 972.47 240.87 731.80 33,006.73 1 2004 Totals 11,889.84 3,222.17 8,447.47 22 01/01/2005 972.47 235.45 737.02 32,288.71 1 23 02/012005 972.47 230.19 742.28 31,528.43 24 03/01/2005 972.47 224.89 747.58 30,778.85 25 041012005 972.47 219.58 752.91 30,025.94 28 05/012006 972.47 214.19 758.28 29,287.88 27 08/012005 972.47 208.78 783.89 28,503.97 03/1912003 Page 2 County of Monroe Amortization Table Data Payment Interest Principal Balance ' 28 07/0112006 972.47 203.33 789.14 27,734.83 29 08/012005 972.47 197.86 774.82 28,960.21 30 09/01/2005 972.47 192.32 780.15 28,180.08 31 10/01/2005 972.47 188.78 786.71 25,394.35 3211/01/2005 972.47 181.16 791.32 24,803.03 33 12/01/2005 972.47 175.51 798.98 23,808.07 2005 Totals 11,1389.84 2,489.98 9,199.88 34 01/01/2008 972.47 189.82 802.85 23,003.42 35 02/01/2008 972.47 184.09 808.38 22,195.04 38 03/01/2008 972.47 158.33 814.14 21,380.90 i 37 04/01/2008 972.47 152.52 819.95 20,580.95 __ 38 05/01/2008 972.47 148.87 825.80 19,736.15 39 08/01/2008 972.47 140.78 831.89 18,903.48 40 07/01/2008 972.47 134.85 837.82 18,085.84 41 08/01/2008 972.47 128.87 843.80 17,222.24 42.09/0112008 972.47 122.86 849.82 18,372.82 43 10/01/2008 972.47 118.79 855.88 15,518.94 4411/012008 972.47 110.89 881.78 14,855.18 45 12/01/2008 972.47 104.54 ' 887.93 13,787.23 2008 Totals 11,88944 ,850.80 10,018.84 48 01/012007 972.47 98.35 874.12 12,913.11 47 02/01/2007 972.47 92.12 880.35 12,032.78 48 03/01/2007 972.47 86.84 888.63 11,148.13 49 04/01/2007 972.47 79.51 892.98 10,253.17 1 50 05/01/2007 972.47 73.14 899.33 9,353.84 51 08/012007 972.47 88.73 905.74 8,448.10 62 07/01/2007 972.47 80.28 912.21 7,535.89 53 08/01/2007 972.47 53.78 918.71 8,817.18 54 09/01/2007 972.47 47.20 925.27 5,891.91 55 10/01/2007 972.47 40.80 931.87 4,760.04 5811/01/2007 972.47 33.98 938.51 3,821.53 1 57 12/01/2007 972.47 27,28 945.21 2,878.32 _ 2007 Totals 11,889.84 768.73 10,910.91 58 01/01/2008 972.47 20.52 951.95 1,924.37 59 02/01/2008 972.47 13.73 958.74 986.83 80 03/01/2008 972.47 8.84 985.83 0.00 2008 Totals 2,917,41 41.09 2,878.32 _ Grand Totals 68,348.20 10,878.17 47,870.03 03/19/2003 Page 3 County of Monroe Amortization Table Last Interest amount decreased by 0.05 due to rounding. II l_i • • • Exhibit R Limited Warranty Policy Sign Off Agreement • • FHe: Marathon EOC Rev 4 031003A 2 • LIMITED WARRANTY POLICY SIGN OFF AGREEMENT .Job/I: 03-03-6513 Client: Monroe County Florida Purchase Order 0: 171004.1 Location: 1200 Truman Ave. 2nd Floor,Suite 211 Key West,FL 33040 • Description: Marathon EOC This documentprovides foracceptance of a installation and sign off/final acceptance milestone in accordance with the Purchase Order agreement The customer agrees that the work they have contracted Audio Visual Innovations(AVI)to perform has been completed to their satisfaction. For a period of one year from the execution of this form,AVI warrants the system and system components,as supplied and installed by AVI,to be five from defects in material and workmanship.AVI will repair or replace(at our option)any product deemed by us to be defective. This Werra:ay does not cover problems caused by associated equipment that has been provided and/or connected by others, or damage caused by accident,misuse.improper power source,fire, flood.lightning,repair,or alteration by other than AVL This warranty is independent of all manufacturers'warranties. Item: Marathon EOC Milestone Description: Completion AVI Schedule Value: • '" MOW ll • A LSignature: Print Name: (// L1 < 'IA Ni e.v t e4 • Ti tt Tide-Ili/MA)MA i2(C' <<',`Gate of Acceptance; .der• 9-Sign-alf • ' i ALA .ri.dio'visu,al. CHANGE ORDER flflovatiOns Number: on-*it scwii.POS ijang' 1 SeiaAnd Heard: 6555 Powerline Road,Suite 4I3,FL Lauderdale,FL 33309 Date: May 30,2003 Phone: (954)963-6700 Job Number. 03-03-6513 Far; (954)963-1215 Job Nam Marathon EOC Job Laced= 1200 Tanner Ave. TO: Monroe County Florida Kay Wesr,FL 33040 1200 Truman Ave. Key Wen,FL 33040 Attn: Ydd Xaidevich Original Contract or PO Nimber. 171004.1 Bloomingdale,1L 60108 Date of Origii eI Contract: 4/ 3/2003 We hereby agree to make the change(s)specified blear, Item Qty. Mmufaeturer Model Description unit Price Emended Price 1 I Carnes CNHBLOCIC CmmecrfoeBlocIc S200,00 S00,00 2 50.00 50.00 ' 3 S0.00 50.00 4 S0.00 50.00 s S0.00 S0.00 _ 6 30.00 S0.00 7 S0.00 50.00 5 50.00 50.00 9 50.00 50.00 10 50 00 S0 00 11 S0.00 50.00 12 $0.00 S0.00 13 50.00 50.00 14 50.00 S0.00 15 50.00 50.00 16 i0.00 17 $0.00 S0.00 50.00 15 50.00 30.00 19 $0.00 S0.00 20 S0.00 S0.00 71 sox 30.00 22 50.00 50.00 27 50.00 50.00 24 50.00 Soso " S0.00 S0.00 2f So.00 io,00 27 S0.00 50.00 25 so.00 29 1 50.00 50.00 S0.00 -I Subtotal 5200-00 Tax 50.00 NOTE: This Change Order becomes part of and in confonitawc:e with the misting manna. WE AGREE hereby to make the change(s)specified above at this price. ► 5200.00 5/302003 Previous Contract Amount S 34,539.69 Authorized Signature(Contractor) Date Revised Contra Amount S34,739.69 ACCEPTED-The above pricesand Authorized sib(Owner) specifications of this Chang;Order ate Satisfactory and are hereby accepted. Ail work Print to be performed under same terms end conditions as specified In original oonnact unless otherwise stipulated Date of Acceptance 10-Change Orders Exhibit S Equipment Lists ,-, ..oti 1 et Li Co pA.,e4 et..-14" - EQUIPMENT LIST Air Audio Visual Innovations Your Scurce For Bdng Seen And Heard Prepared for: Prepared By: Scott J. Majewski Monroe County Florida Date Prepared: March 9, 2003 Key West, FL 33040 Proposal No.: Attn Vicki Yaklevich Project Name: Marathon EOC ITEM iiiiii4:41'0440.t:,-:.V40'1110. '-;:isiitorlioie,gtit-- fo--.. -,,:P'•-::' bliTMIC10. i 1.tid.,1-laitiblo pivOt • NOt - - -. .111.t, - ,,;_.4;!,s(4! ,,-.''-'';f:1,3*5,!-:•,r,;,'4,';- it.vt-i,v, . ..,.-;, -: 7::'-', . . :' 7...-,, ; : . : ,:„:- .,:.y ._,.,,, , , I 1 órestron t ontrol Processor $2,400.00 $.2,400.00 -- 2 1 Crestron 10/100 Ethernet controller $466.67 $466.67 3 1 Crestron 12"Color Touch Panel $5,333.33 $5,333.33 4 1 Crestron Video Insertion Card $533.33 $533.33 5 1 Crestron XGA Insertion Card $1,000.00 $1,000.00 6 1 Crestron 10/100 Ethernet for panel $533.33 $533.33 7 1 Crestron Relay Expansion Card $333.33 $333.33 8 4 Crestron Dual Current Sensor Module $333.33 $1,333.32 9 2 Crestron Electrical Control Interface $466.67 $933.34 - 10 1 Crestron 4 Button Screen/Projector wall control $240.00 $240.00 11 1 Crestron Face Plate $33.33 $33.33 12 1 Crestron Remote Software $471.70 $471.70 13 5 Crestron IR Probe $33.33 . $166.65 14 1 Lutron Dimming Panel $0.00 $0.00 15 1 Lutron Dimming Panel $0.00 $0.00 1_ 1 16 1 Lutron Master Control(Wall) $0.00 $0.00 17 2 Lutron Slave Controller(Wall) $0.00 $0.00 - 18 1 Lutron RS232 Interface $9,293.33 $9,293.33 19 1 Extron VC 200 ScanVerter $3,196.00 $3,196.00 20 1 Extron VGA Line Amp(Wall) $300.00 $300.00 21 1 AVI Power Supply $33.33 $33.33 22 12 Crown Podium/Ceiling Mica $98.37 $1,180.44 LOT AVI Miscellaneous Materials $2,400.00 $2,400.00 .. Elk"1/47 i P.1 cl I ts 30/ t cit4 I ,LL3 .----- i 1 r-- • • EQUIPMENT LIST � Innovatio AudioVisuans i _i A Your Source For Being Seen And Heard. Prepared for: Prepared By: Scott J. Majewski Monroe County Florida Date Prepared: March 9, 2003 Key West, FL 33040 Proposal No.: Attn: Vicki Yaklevich Project Name: Marathon EOC 1 1 Crestron Control Processor $2,400.00 $2,400.00 2 1 Crestron 10/100 Ethernet controller $466.67 $466.67 3 1 Crestron 12" Color Touch Panel $7,333.33 $7,333.33 4 3 Crestron Wall Touch Panels $833.33 $2,499.99 5 1 Crestron IR expansion Card $666.67 $666.67 6 1 Crestron 10/100 Ethernet for panel $533.33 $533.33 7 1 Crestron Relay Expansion Card $333.33 $333.33 8 0 0 0 $0.00 $0.00 9 0 0 0 $0.00 $0.00 10 0 0 0 $0.00 $0.00 11 0 0 0 $0.00 $0.00 12 1 Crestron Remote Software $471.70 $471.70 13 6 Crestron IR Probe $33.33 $199.98 ' 1 14 0 0 0 $0.00 $0.00 15 0 0 0 $0.00 $0.00 16 0 0 0 $0.00 $0.00 17 0 0 0 $0.00 $0.00 18 0 0 0 $0.00 $0.00 19 1 Extron Comp Interface $606.67 $606.67 20 1 Extron VGA/Audio Cable $120.00 $120.00 21 1 0 0 $0.00 $0.00 22 12 Crown Podium Mics $248.47 $2,981.64 LOT AVI Miscellaneous Materials _ $2,400.00 $2,400.00 TEAL_ kW P t' 02•1; 013.31 , � I � I � Exhibit T E-mail From Audio Visual Innovations and Change Order Summary Message Page 1 of 1 7 ? From: Scott Majewski.[smajewski @ aviinc.com] Sent: Wednesday;June:18,.2003•4:3 PM' To: Yaklevich-Vicki@monroecounty-fl.com Cc: 'Erickson-Todd @ monroecounty-fl.gov' If Todd could faxback the signed change order summary we can;get hustling on,it. We are now about$10-20 under.bQdd a Regards, Scott J. Majewski, MCP Sales Engineer 954-938-9382 Ext. 3307 Toll Free: 888-284-8912 Fax: 954-776-4772 SMajewski@avlinc.com AVI... Audio Visual Innovations 6555 N. Powerline Rd, Suite 413 Ft. Lauderdale, FL 33309 www.aviinc.com if 8/13/2003 A -din Visual. CHANGE ORDER :Inn;ovations. Number: 2 ' , ibursoumO.bi Bair Seca And:Matt Dab: 6555 Powcaine Road,Suite 413,Ft.Lauderdale,FL 33309 Phone (954)963-6700 Job Number: 03-03-6513 Pec (954)963-1215 Job Name: Marathon EOC Job Location: 1200 Truman Ave. TO: Monroe County Florida Kcy West,FL 33040 1200 Truman Ave. Key West,FL 33040 Atm: Vicki Ydclevich Original Contract or PO Member: 171004.I Bloomingdale,]L 60108 Date of Original Oxeraet 4/23/2003 We hereby agree to make the changes)specified below: Item Qty, Msmfaetmrs Model Description Unit Price Extended Price 1 9 Crown MB-3 Bouncily Me S162.49 3%462.4I 2 1 Boron 60-371-01 Computer Intofacs 3606.67 S606.67 3 1 Exton 24.490-02 VOA Cable w/Aodio S120.00 3120.00 4 2 Etdton 70-077-01 MounthglOb 33993 $66.66 9 4 Erne 9737.2 PTC-201C IP PIur Camera 3199333 5537332 6 1 Elmo 9731-2 PTG110R P17IT Camera S900.00 3900,00 7 1 Eno 9970-2 Ceiling Moods 356.00 556.00 I 1 Evdroa 60-312-01 VSC 150 Scan Converter 31.333.33 31,13933 9 -12 Crowe LIB-300A Padl nMks 3240.47 (52,911.64) 10 1 Crown CHI 2 amino!300w/clumad Power Amp S335.00 3535_00 11 1 Ewen 60-544-01 WL-T-92IP Cone o1r 539333 5393.33 12 I Ulm 60.544.02 1PL-T-311P Controller S43333 543333 13 39 AVI AVI Inch Instal 565.00 52,535.00 14 7 AVI AVI Pmoamming 515.00 3593.00 13 1 AVI AVI Mho $654,30 $65430 If 30.00 So,00 17 30.00 10_00 11 50.00 50.00 -- 13 30,00 30.00 20 30.00 30,00 21 S0.00 se 00 2 3 7 50.00 $0,00 30-00 50.00 24 $0.00 S0.00 25 50.00 10.00 M 30.00 30.00 z7 30.00 50.00 21 • 30.00 50.00 19 10.00 S0.00 ! Subtotal $12,782.71 Tax 50.00 - NOTE: This Change Order becomes part of and in conformance with the exist9ng contract WE AGREE hereby to make the chaese(s)specified above et this pricy ► S12,782.71 1/0/1900 Previous Contract Amount $34,739.69 Authorized Signature(Contactor) Dam Revised Contract Amount $47,522.40 ACCEPTED-The above prices End Authorized Signature(Owner) - - specifications of this Change Order are Satisfactory mod are hereby accepted. All work Print - I , to be performed under same terms mid conditions as specified in original contract 1_ , unless otherwise stipulated. Darn of Acccptanae 10-Change Orders I Exhibit U Limited Warranty Policy Sign Off Agreement, Change Order #2 ---_ ._. _.___ _ _ IElOUZ • Fie: Marathon EOC Rev 4 031003A.xls 3 LIMITED WARRANTTY POLICY SIGN OFF AGREEMENT Job If: 03-03-6513 Client; Monroe County Florida Purchase Order N: 171004.1 Location: 1200 Truman Ave. 2nd Floor,Suite 211 Key West,FL 33040 Description: Marathon EOC This document provides for acceptance of a installation and sign offifmal acceptance milestone in accordance with the Purchase Order agreement The customer agrees that the work they have contracted Audio Visual Innovations(AVY)to perform has been completed to their satisfaction. For a period of one year from the execution of this form.AVI warrants the system and installed by AVI,to be free from deflects In material and workmanship.AVI will repair oreeplace(at our optioncomponents,aS)any and product deemed by us to be defective. This Womanly does not cover problems caused by associated equipment that has been provided and/or connected by others, or damage caused by accident,misuse,This warranty is independent of all tnaa roter power sournoes. flood,lightning.repair,or alteration by other than AVL �^} ufaehuers'warranties. etas Marathon EOC Milestone Description: Completion AVI Schedule Value; S47,1224 Signature: Print Name:_ Title: :ne Date ofAcceptance: 9-Slpn-off , ‘._ " 7Z ___ , . . __ . . . . ',.Audi.O►,�. os.:4a l .::. .:.: ..��ri ov�a-ti CHANGE ORDER • ,f c fls yei+=5llnollbilBejng:,*,nedtseitd, ' Number: 2 6555 Poweriine Road Suite 413,Ft.Lauderdale,FL 33309 Data: Phone: (954)963-6700 Fix: (954)963-1215 Job Number 03-03-6513 Job Name: Marathon EOC TO: Monroe County Florida Job gym: 1200 Truman Ave. 1200 Truman Ave. Key West,FL 33 040 Frey West,FL 33040 At Yield Yalcicvleh Original Conrad or PONumbat: 171004.1 Bloomle.dale.IL 60108 We Item Mamataa t�,R hereby �to make the change(s)specified below: DaCiiWnIMMIIIIMMINEMEmEmmurfi 1 9 Crawl KB-3 ✓ Bowan,Mte 2 1 Enron 60-378 01✓ CamlwrMrIour(itee $162,49 51,46241 3 1 Emma 26.490 02✓ VGA C�b1I w/Aye $120.07 S606.67 2119 70-077.01 ✓ 5133 33 5 4 f9m° M0�6 S120.00 9737-2 PTC-201C 1P P/Lr Camera ]a 566.66 6 I Elmo 9731-2✓ PTC-11011 P/7/f Caeca 51,393.33 $537332 9870.2 ✓ C E I Enron e�71n!MowLLy 1900.00 3900.00 7 1 Elmo 60-312-01 VSC 150 9cpn Co° S36.00 S56.00 9 -12 Cows LM-300A Podium Mkt 57,833.3342,47 10 1 Own $1,833.33 t 11 2 Q�rme1300w/chx,,,Nl Power Amp✓ 5242.47 ($2,911.64) 11 I Emma - 60-544.01 1PL-T-S2 IP Controller S593 30 3,00 er 339 12 1 ibmoa 60-544-02 WPL-T ss LP Cai JI 53 .1 >I39333 13 39 AVI AV/ Tomb lanall 5433,33 543333 $65.00 S7,S30 00 14 7 Avl AVI Programming IS 1 AVI Avl 16 Mtge 313,00 S595.00 17 5654.30 1654„30 • 1e S0,00 10.00 1! 50.00 $0.00 20 S0.00 21 vim 50.00 22 30.00 30,00 23 S0,00 .30.0024 30.00 $0,00 25 50.00 $0.00 26 S0.00 S0.00 27 S0.00 50,00 22 tom S0.00 19 30.00 50.00 10.00 S0.00 $0,00 $0.00 Subtotal S12,782.71 Tax S0.00 NOTE: This Change Order becomes part of and in conformance with the •�.: contract WE AGREE hereby to make the change(s)specified above at this price ► S 124782.71 • Authorized Signature(Contractor . 1/D to P - 'ous ContractDate Amount $34,739.69 ' -Feed Contract Am, $47 .40 'I 1 1 1/#:f ...._4 ACCEPTED-The above prices and Authorized Signature(Owner-�� specifications of this Change Order are Satisfact° and are he reby ereby accepted.. All w '1 t l� / r to be performed under same terms end > condili0n0 as specified hi original contract unless otherwise stipulated. Date of Acceptance 10.Change Orders Exhibit V Final Invoice From Audio Visual Innovations 04 L Proposal Summary Itfritniova0 ; borsoscetrBekgsma nodAr�aL Prepared for: Prepared By: Scott J.Majewaki Monroe County Florida Date Prepared: March 9,2003 Key West, FL 33040 Proposal No.: Project Name: Marathon EOC TOTAL EQUIPMENT COST-From Equipment List 521.013.31 LIncludes cable,connectors,hardware.switches,relays,terminal blocks,panels.etc.,to Insure a complete and operational system. ENGINEERING AND PRE4NSTALLATION $5,752,50 Including all required design,drawings.run chests,instruction manuals,prognunmlrg.etc- Also includes at fabrication,moddcassen, assembly,rack wiring,programndng,etc..sane perfumed • at AV contractor's premises. INSTALLATION $6,941.04 Including ell on-site Installation and wiring,coordination end supervision,tasting,checkout.Owner training.etc.performed on the Owners premises. TRAVEL $625.00 Includes par diem,hotels,air fare,and other bevel related expenses. GENERAL AND ADMINISTRATIVE $207.94 Including all G&A expenses;Clerical.bonds,shipping.Insurance and warranties. CONTINGENCY $12,982.71 This fee shall be a hold-back In the event of unforseen changes or adddions to the system. In the event this fee is unnecessary.the fine amount of the contingency tee wtii be refunded to dienL SUBTOTAL $47,522.40 TAXES 50.00 GRAND TOTAL $47.522.40 WARRANTY Included One year parts and labor,exclusive from mrnufariurer warranties. SCOPE OF WORK Please see attached Scope of Work Not included: Structural,ceiling, mdlwark,or AC/heat modifications, HV electrical or conduit. This Entire Document and all information enclosed including drawings,specifications and designs is the property of Audio Visual Innovations(AV!).Proprietary krforreation provided to our client or his agents Is for the sole purpose of demonstrating AVra capabilities and shall be hold In confidence.These Materials may not be copied,distributed or disclosed In any way without the ewe written permission of on authorized representative of AVI. Scott J.Milewski Sales Engineer Customer Signature Print Date L 6411jb1\r 111•vaLLva� a..•....��• --� — -- --- I . . ___a (",...:.ni fl ,' f;r,0 fir nffrce Simnlies_ Price is entered as approximate until the I I Exhibit W Memorandum From Former Director of Technical Services 1`, : BOARD OF COUNTY COMMISSIONERS y _�� ,.` Mayor Dixie M.Spehar, District 1 It.� •" Mayor Pro Tern Murray E. Nelson, District 5 oUNTYMON ROE - � George Neugent, District 2 r.' " Charles"Sonny"McCoy, District 3 KEY WEST FLORIDA 33040 '. Ii , .Y •r (305)294-4641 ie David P. Rice,District 4 ‘11 rIr .49,:A To: Danny Kolhage, Clerk of the Court From: Todd Erickson Director of Technical Services CC: Sheila Barker RE: Inventory authorization, receiving and billing procedures Date: 6/12/03 Inventory Account Objective: In December 2002,Technical Services was issued an asset account in which to purchase items in larger quantities (to save money by making volume purchases) or to have common items in stock to facilitate a faster and easier turn-around time while servicing work orders. It was the intent of the Department to minimize the amount of paperwork and time necessary to acquire emergency items as well as routine items, while maintaining tight control over loss or depreciation. Inventory Account Purchasing: Purchase Orders are issued for equipment or software directly into the asset account. The account was initially setup with a ceiling of$50,000 in active inventory. Items over$750 are subject to asset tags as are all capital items. Technical Services will internally audit and reconcile this account quarterly, and will perform a count at the end of the fiscal year as requested by the Clerk. All received items are tagged with a unique inventory number and entered into our electronic work order system. At time of entry, account designation is assigned to Capital, Operating or Office Supplies. Price is entered as approximate until the final invoice is received. When we receive a final invoice, the cost of shipping is allocated appropriately to each item on the invoice along with a nominal markup cost(from 0% to 10%) to cover return shipping costs, out of warranty breakage, shipping miscalculations, etc. Inventory is secured under lock for all standard size items. Items are dispersed by an authorized staff member after an item has been added to a work order and approved by the appropriate person at the department with sufficient purchasing authority. Inventory Account Issuing and Authorization Procedure: To minimize the amount of time and paperwork necessary to transfer items out of inventory to departments, an electronic system has been implemented. The system works as follows: 1 —Department requests a part from inventory or a technician recommends a part 2 —A Technology Work Order is initiated 3 —The requested or required parts are added to the work order. The tech then clicks the "request _ authorization"button. This will send a message to the person in the department that has the appropriate signing authority for the amount of money requested. An email message is also sent to the Department Head and the person placing the work order to inform them that parts are necessary and that authorization is being requested. 4—When the appropriate person authorizes the expense, the system records the authenticated NT username, the computer ID and the date and time. The work order system is automatically updated, and an email is sent to Tech Services indicating which items were approved, so that they can be released from inventory. 5 —If any items are added to a work order, the entire approval process starts over. If items are removed from a work order, no action is necessary. When a work order is closed, the person placing the work order and the department head are emailed with the complete review of what was necessary to complete the work order, including all costs. 6—Upon closing a work order that has billable parts, an email is sent to the person who placed the work order to confirm that the parts were received. When the user confirms delivery, the authenticated username, the computer address and date/time are recorded. Inventory Billing Procedure: At various intervals, billing statements will be generated. At the request of the Clerk, the billing statements will include all of the following information: Fund, Department, Department Code, Line item Code, PO#, Part Description, Approved By, Approved Date, Received By,Received Date, Price This report is subtotaled by Department Code, Fund and Grand Total j ; The report will be presented to the Clerk for Processing. Any questions pertaining to the billing amount or items will be directed to Technical Services. I_1 Todd Erickson Director of Technical Services , - Exhibit X E-mail From TDC 17 1-1 Page 1 of 2 From: Erickson-Todd Sent: Tuesday, July 22, 2003 11:29 AM To: Roth-Cee; Guerra-Maria Cc: Kokenzie-Hank Subject: FW: Job Order Parts Approval Requested for JobID: 14561 Cee, YES, we are charging $217.89 for each one. This includes the keyfob and the per seat software license. Todd Erickson Director of Technical Service 1200 Truman Ave STE 211 Key West, FL 33040 305-295-5110 Original Message From: Roth-Cee Sent: Tuesday,July 22, 2003 10:05 AM To: Kozma-Danah Cc: Erickson-Todd Subject: RE: Job Order Parts Approval Requested for JobID: 14561 The keyfob is inexpensive but the software for it to run is not. This is the total cost for one. Todd knows the exact costs but is out of the office today. Cee Original Message From: Research@fla-keys.com [mailto:Research@fla-keys.com] Sent: Tuesday, July 22, 2003 9:15 AM To: Roth-Cee@monroecounty-fl.com Subject: RE: Job Order Parts Approval Requested for JobID: 14561 Hi Cee, I thought the cost for one key fob was about$30. Is this order for a bunch of them? Let me know. Thanks. Danah Danah Kozma Director of Market Research Monroe County Tourist Development Council 1201 White St. Suite 102 Key West, FL 33040 Phone: 305-296-1552 Fax: 305-296-0788 email: research@fla-keys.com Original Message From: Tech Services [mailto:Roth-Cee@monroecounty-fl.com] Sent: Tuesday, July 22, 2003 9:09 AM To: Tech Services Support 10/16/2003 ragva �i � Cc: Danah Kozma Subject: Job Order Parts Approval Requested for JobID: 14561 Importance: High An Approval Request was sent to: Parts List for Order: 14561 1168 -RSA-Keyfobs - $217.89 Parts Total:$217.89 Please get this purchase approved ASAP -Thx Todd 7/22/03 9:09:05 AM Your Technology Support Team n/1 6/2003 r- , , I ExhibitY Memorandum From Finance Director J cOUN r�.C.. CLERK OF THE CIRCUIT COURT MONROE COUNTY BRANCH OFFICE BRANCH OFFICE MARATHON SUB COURTHOUSE MONROE COUNTY COURTHOUSE PLANTATION KEY 3117 OVERSEAS HIGHWAY 500 WHITEHEAD STREETGOVERNMENH CENTER MARATHON,FLORIDA 33050 KEY WEST,FLORIDA 33040 88820T OVERSEAS HIGHWAY TEL.(305)289-6027 TEL.(305)292-3550 PLANTATION KEY,FLORIDA-7145 TEL FAX(305)289-1745 FAX(305)295-3663 (305)85274 FAX (305)852-7146 MEMORANDUM TO: Jim Roberts County Administrator FROM: Sandra Carlile f ► , Finance Director 1sYL, RE: Technical Services Inventory Account DATE: October 2, 2003 • ****************************************************************************** Effective October 2, 2003, we are freezing the Technical Services Inventory Account #141003 until further notice. This account was created in December, 2002 upon an initial meeting between Lisa Druckmiller, Todd Erickson, and myself. At that time internal controls, procedures, and billing information was discussed. I have had two other meetings with Todd Erickson and certain staff regarding billing issues and accountability of the inventory. In July, the first billing was recorded totaling $1,841.72. Once the format and information required for the billing was appropriate, we were to receive billings quarterly. In August, a billing was recorded totaling $3,725.19. Again, items were included that had been distributed before and after the quarter being billed, account codes were wrong, and what appeared to be an incomplete billing as the invetory account totaled approximately $50,000 after six months and billings totaled only $5,566.91. The next billing received was in a totally different format from previous billings and for items unfamiliar to us. Upon calling Cee at Technical Services, tis was meant to be a billing for items not in inventory and about which I was totally unaware. Hence, the billing was returned to the Department, Shiela Barker was notified of the situation and I was assured that the billings would be corrected. It is now beyond the fiscal year end in question, and I find it unacceptable that I still do not have accurate and complete billings for the inventory account. 1 �, r-, Page Two Jim Roberts October 2, 2003 In addition, Technical Services and Shiela Barker were both notified that I needed a copy of the Technical Services inventory on September 30, 2003 to support the $59,262.23 balance. Prior to that date, I received, what was supposed to be, an accounting of the inventory. What I received was a form that noted items in stock and not billed but with no amounts. Therefore, this document was also returned to the Department. One of the issues that arose was developing a procedure for tagging capital outlay prior to distribution. These procedures have not been followed. Computers, for instance, are removed from Technical Servic es prior to tagging the equip ment and we are not notified. When tagging of inventory is attempted, the equipment is not in the Technical Services Department and must be located. Then we must commute to each of those locations throughout Monroe County. I would like to charge the remaining balance in the inventory account of $59,262.23 to the Technical Services budget, cost center 06002, and, thereby, eliminating the Technical Services Inventory Account. This plan was discussed a number times with Todd Erickson should processes and procedures go awry. This transfer, however, will probably exceed their budget which would require a budget transfer to correct. In closing, I believe the inventory process is too complex for Technical Services to properly manage. My recommendation is to close the inventory account, as proper accounting cannot be maintained. If you concur, please provide your written approval prior to October 17, 2003, my fiscal year end deadline. Thanking you in advance for your attention to this matter. CC: Danny L. Kolhage 2 Exhibit Z E-mail to Division Directors/Department Heads hI I ' From: Erickson-Todd Sent: Tuesday, November 19, 2002 12:25 PM To: Roberts-Jim; Paros-Reggie; Pierce-Dent; McGarry-Tim; Malloch-Jim; Horton-Peter; Ingraham- Charles; Barker-Sheila; Toner-Irene; Hill-Jennifer; Kula-Norma; LaTorre-Louis; Norman-Ronda; Paskalik-Joe; Garrett-George; Coffer-Stephanie Subject: New Feature Cost Review Division Directors/Department Heads, The addition of the two new drive letters marks a significant change in how Technical Services will be providing service.We are actively working towards a usage based billing system, or what we call "Pay as you go". These new drives offer unprecedented capacity and reliability, and each department will be billed only for the amount of data that they have stored. The cost of this storage is $300 per 10gig of data. I will be glad to discuss the specifics of how this affects each department. This cost includes everything necessary to store and backup your data and the cost is aggregate. Let me give you an example. The first month you have 7 gig total of data-you will be billed $300 ' The second month you have 9 gig total of data -you are not billed, since you already paid for a block of 10 gig The third month you have 16 gig of data-you are billed$300 for another 10 gig of storage(you have 10 already) Technical Services is moving toward this financial model for most of its services for several reasons. First, it saves the county as a whole, a significant amount of money. Instead of purchasing dozens of individual drives, tapes and software,we purchase one larger, complete solution. Second, is that capacity, performance and reliability are improved 10 fold. We are deploying enterprise class solutions that can take the abuse of hundreds of users for many years. And third, is that it is fair. Each department has different needs, so now they only have to pay for what they are actually using, and they get improved reliability and performance that previously may have been cost prohibitive. Please contact me directly with any questions concerning this change, Thank you Todd Erickson Director of Technical Services (305)295-5130 Fax(305) 295-5105 1200 Truman Ave Key West,FL 33040 Exhibit AA Letter From Solarcom 4 r Arr NOLARCOMT' October 28, 2003 Ms. Patty Sutton I _I Monroe County Clerk of Court Office 500 Whitehead Street Key West, FL 33040 Dear Patty: As requested, this letter is written in order to advise you of the discussions and conversations that I had with Todd Erickson regarding the purchase of storage equipment j for the Data Center. On many conversations, Todd explained that he had a very limited budget to work with, yet had a great deal of requests for being able to provide services to the various departments that were on the network supported by the Data Center. One of the areas that he needed to increase on the network was storage space. He explained to me that he was preparing a method by which he would be purchasing disk storage and/or tape back- up equipment under his budget but would be ultimately charging back disk space to each individual department that asked for disk or storage space on the network. He further explained to me that he had reviewed this with his manager, the budget and purchasing departments, and the other departments that he would be billing these services out to. He indicated that everyone was in agreement with this procedure. In order to process the purchase orders for this solution, he wanted to create a description for this storage that he would use on the purchase order. This description would be used on the purchase order to Solarcom and also to his internal departments when he invoiced to them. The description that he created was "HP Storage Unit 10GB" —quantity of 15 which is equal to 150GB of disk space. He wanted the sales price of each 10GB of space to be $300.00. So, a quantity of(15) 10GB disk space at $300 each = $4,500.00. In order to provide disk space on a network p , you have to add equipment. In this case, the equipment that would need to be added was a SAN (Storage Area Network) device and a tape back-up device. The SAN device that Todd chose is made by Adaptec. What comprises the Adaptec SAN device is a housing device that has the ability to talk to the Solarcom,LLC•22 Driftwood Drive•Key West,FL 33040 (305)293-0821•Fax:(305)295-7381 http://www.solarcom.net ELF .r network and then the individual disk drives that go in this housing device that provide the storage space. The housing device will hold 14 drives—these drives can be in various capacities of 72GB, 146GB and 172GB. Todd chose to use the I46GB drives. So in order to create the Storage Area Network, Todd had to purchase several pieces of equipment which are as follows: P.O. # 233986 for$15,823 —Adaptec DuraStore Subsystem P.O. #238475 for $4,500—(3) 146GB Disk Drives P.O. #235369 for $4,500—HP SureStore Tape Drive and (1) 146GB Disk Drive P.O. #235041 for $4,500—(10) HP Tape Cartridges and Rackmount Kit for tape drive As I discussed with Todd, even though his purchase order was going to have the description of"HP Storage Unit 10GB", that when Solarcom shipped the above equipment to him, that the equipment would be listed on the invoices from Solarcom. He indicated that this would not be a problem since everyone was aware of what he was doing and everyone was in agreement. When he purchased the HP Sure Store Tape Drive, the sales price was higher that the$4,500 purchase order. So,he gave me two purchase orders of$4,500 each for a total of$9,000. The sales price for the Tape Drive and 146GB hard drive totaled$9,098. I agreed to use the two purchase orders for Todd in order to help him implement this solution, but only because he assured me that he had everything approved to process in this manner. I have attached the breakdown of these transactions. I hope this explains what transpired and the details of these transactions. If I can assist any further, please do not hesitate to contact me. Sincerely, Ja ice J. Long Senior Account Executive ; I i 'I County County Seaman Solateom Purcham Purchase Invoice Equipment Saks Solarcom Date of , Order No. Order Amount Amount Oty Description Order No. Invoice No. Invoice Serial No. 23356E $15,823 $8,952 1 Storage Subsystem,2GB,Firer.12-Bay 35259E 835278 11202002 PBOE2310050 $3,550 1 DuraStor tit 128MB Battery Canleter 352598 PBOE231000L $1,213 1 Adapter,Single Port,84 Bit,PVIN.2G8 352598 JFCO223F34958 31,213 1 Adapter,Single Port 64 BlI.P br,2GB 352598 JFCO223F35011 __. 3263 1 Transcelvar,Srnai Form Factor 352598 Not eppicabla $263 1 Trmnewivsr.Sinai Form Factor 352598 Not amicable $50 1 Cable,ACK-OPT-LC-LC-2G-IOM 2GB FC OPT 352598 Nat appicable 550 1 Cable.ACK-OPT-LC-LC-2G-1OM 2GB FC OPT 352588 Not sprit ra e $299 1 Transceiver,Small Form Factor 352598 Not applicable 515,853 FC. PC. ;',--r. ... .. - .1-C3 ._-:FC^A TC7.,-C'..:,CO. _ 235041 y 14,500 60 r15 - Storage Unit,10GB 357377 838443 1216/2002 Not applicable 5112 1 Cartridge,Data,LTO Uttium,200GB,1 PK 357377 Not applicable 582 1 Cartridge,Date,LTO UNMET'.200GB.1PK 357377 Not app4able $82 1 Cartridge,Date,LTO Utrlum,2000B,1PK 357377 Not applicable S82 1 Cartridge,Data.LTO Uitlum.2000B.1 PK 357377 Not app liable 182 1 Cartridge,Data,LTO Undue,2000B,1 PK 357377 Not applicable -- $82 1 Cartridge,Data.LTO UIMum,200GB,IPK 367377 Not applicable ' $82 1 CartridgeData,LTO Ultlum,2000B,1PK 357377 Natappiiable $82 1 Cartridge,Data,LTO Utlrturn,20009,IPK 357377 Not appleable $82 1 Cartridge,Dela,LTO Ultrium,2000B.1PK 357377 Not applicable S82 1 Cartridge,Data,LTO Urtrtum,200GB,1PK 367377 Not applicable SO 1 Raekmant Kit for HP StrnStore OLT Autoloader 357377 Not applicable $820 236389 $4,500 So 15 Storage Una,10GB 358014 840025 12/31/2002 Not applicable 1 $7,229 1 Autoloader,SursStore(Atrium,118 358014 12/31/2002 DEH2L01801 $1,1349 1 Hard Drive,146GB,U320,BOP,Universal 358814 3118/2003 ECV29W58 $8278 59,000 91,0311 Total for PO 231041 and 238328 238476 44,500 SO 15 Storage Unit,10GB 372866 870138 8/122003 Not applicable S1,090 1 Hard Drive,146GB,U320,BOP,Universal 372886 S1,090 1 Hard Drive,146GB,U320,BOP,UnNeraal 37286E ECV2YL7B $1,090 1 Herd Drive,146GB,U320,BOP,Universal 372868 ECVOG3HB 382 1 Cartridge,Data,LTO Uarlum,200GB,1PK 372936 Not applicable 582 1 Grudge,Data,LTD UItrium,2000B,IPK 37288E Natapplcable 582 1 Cartridge,Data,LTO Llltrlum,2000B,1PK 372803 Notappiable 582 1 Cartridge,Data,LTD Ultrium,2000B,1PK 372866 Notapptoabte 582 1 Cartridge,Data,LTO Ulaalm,2000B,1PK 37258E Not appiable 582 1 Cartridge,Data,LTO Lithium,2000B,IPK 37288E Natappicablu ' $82 1 Cartridge,Data,LTO Utrhrm,2000B,IPK 372886 Not applicable S82 1 Cartridge,Data,LTO Uaim,2000B,IPK 37288E Not applicable 552 1 Crtrldga,Data,LTO Ultrlum,2000B,IPK 372886 Not applicable 582 1 Cartridge,Data,LTO Ufbtum,200GB,1PK 37286E Not amicable S82 I Cartridge,Data,LTO Ulttum,2000B,IPK 372556 Not apiarmle ' 582 1 Cartridge,Data,LTO Ulbium,200GB,1PK 37188E Not amicable 582 1 Cartridge,Data,LTO Ultrltan,2000B,1PK 372688 Not applrabla $82 1 Cartridge,Daft,LTO Uttri m,2000B,1PK 372880 Not applicable SB2 1 Cartridge,D .LTO Uftrtm,2000B,1PK 372680 Not epplaable 34,600 i I 1 • Ai Equipment sold to Monroe County Data Center(BOCC)since June 1,2002.rde PO 235041,235369 238476 ( II , J 1 •d • County County Soiarcam Saleroom Purchase Purchase Sal„ Saleroom Equipment Date of invoice Order No. Order Amount Order No. Invoice No. Description Invoice Amount Serial No. , 359447 844387 Disk Dive,73.408,U160 SCSI 10K 20030121 Monroe County nee NOTE: THIS EQUIPMENT WAS RETURNED TO not charged for this SOLARCOM-INCORRECT PART NO WAS ORDERED equipment 361031 849261 Disk Drive,145GB.U320,10K RPM 20030219 Monroe County was S760000B NOTE: THIS EQUIPMENT WAS RETURNED TO not charged far this SOLARCOM-INCORRECT PART NO WAS ORDERED equipment • • I All Equipment sold to Monroe County Dala Center(BOCC)since June 1,2002.ats Equip returned to Saleroom .. .J • Exhibit AB Solarcom Invoices , ! 11/20%002� 835278 1 of 1 PO Box 105544 Atlanta, GA 30348-5544 (770)449-6116(phone) " ~ r. 174655 I 352598 --- Federal Tax ID#411254123 SOL4000M"' --:_:1'-•-J Attn: Accts Payable Monroe County Govt Tech Svc Monroe County Data Center 1200 Truman Ave Suit Truman Ave Suite 211 Key West, FL 33040 e 211Key West, FL 33040 K s .:",`t , lit .s. f t-� c .: ': - • .,l .:•-`n�•,,�.' _.z.--; t- rr( `'i'� � ' t .J DUE UPON RECEIPT Janice Long 10 '' Tf Li. ...:; .. .v -• • +; •G`. • .fr'k. .rJ�. �.d . Y�Y�.ds'd#. �l�E!^ • ' Mi . 2,426.00 -- 2 QLA231OFCK ()logic Single Port PCI Adapter Card SERIAL* JFCO223F34958 JFCO223F35011 2 1889700 100.00 Adaptec ACK-OPT-LC-OC-2G-1OM 2GB Cable 8,952.00 t// 1 19666000 Adapter DuraStor Bundle Kit SERIAL* PH0E2310050 526.00 2 1968900 Adaptec ADA-1U-2G-8FP LC XCVR Spare 1 1968900 Adaptec ADA-1U-2G-8FP LC XCVR Spare 299.00 _ 1 1990600 Adapter 72108 DuraStor Kit 3,550.00 SERIAL* PBOE231000L 11 - , •. C7 c./ IP ci\ \la- ' --) 1)114, For questions concerning this invoice call Michael Brunet at 800-241-9882 Ext. 100 WIRE TRANSFER INFORMATION OVERNIGHT ADDRESS BANK: South Trust et Georgia Solarcom LLC Bank of ACCOUNT: Solarcom LLC BANK ROUTING: 061000256 One Sun Court ACCOUNT*: 68889606SWIFT CODE: SOTRUS44 Norcross, GA 30{�0. 92 ~ 283.00 .00 .00 16,136.00 15,853.00 , wY�, i . : ; , �. 16,136.00 1 1 • 06/12:2:03tothl or 8,70138silo$Ordloorfll Atlanta, GA 30348-5544 11111$;3111 PO Box 105544 (770)449-6116(phone) (770)582-8836(fax) /3/.ST"AriEO/V1— 174655 372866 Federal Tax ID#41-1254123 Attn: Accts Payable witkodtQ Monroe County Data Center Monroe County Govt Tech Svc 1200 Truman Ave 1200 Truman Ave, Suite 211 Suite 211 Key West, FL 33040 Key West, FL 33040 4 _ , i ,A!K t•timit • Timm „i , •Ss Ut 238475 DUE UPON RECEIPT Janice Long 10 T.- n..0 •4. ' • : #.0 • ;4; , 15 STORAGEUNIT 10GB Storage Unit 4,500.0 2 08K0362 IBM 146GB Hard Drive SERIAL# ECV2YL7B 15 C7971A HP LTO Ultrium 200GB Data Cartridge-1PK 1 08K0362 IBM 1460B Hard Drive SERIAL# ECVOG3HB ) j.j 7.) For questions concerning this invoice call Michael Brunet at 800-241-9882 Ext. WIRE TRANSFER INFORMATION OVERNIGHT ADDRESS BANK: South Trust Bank of Georgia Solarcom LLC ACCOUNT: Solarcom LLC BANK ROUTING: 061000256 One Sun Court ACCOUNT#: 68889606 SWIFT CODE: SOTRUS44 Norcross, GA 30092 Tax , Location TOW 'T 4,500.00 98.00 .00 . 00 4,598.00 AfrountDuo (VSP). 4,598.00 t owohmp F40 PO Box 105544 12/16/2002 839443 1 of 1 Atlanta, GA 30348-5544 Sfie,Orator ,: (770)449-6116(phone) (770)582-8836(fax) 174655 357377 Federal Tax ID#41-1254123 SCHAARCOM- , ftit Stifiipici Attn: Accts Payable Monroe County Data Center Monroe County Govt Tech Svc 1200 Truman Ave 1200 Truman Ave Suite 211 Suite 211 Key West, FL 33040 Key West, FL 33040 • •SON Entity•••=-, "•• 235041 DUE UPON RECEIPT Janice Long 10 \J!1 try Wee''"rt''240tiV -. e I 15 STORAGEUNIT 10GB Storage Unit 4,500.00 10 C7971A HP LTO Ultrium 200GB Data Cartridge-1PK ** Freight bill to follow. PS) 010V9trr .4\C44 P, IA*t - 111 (.• For questions concerning this invoice call Michael Brunet at 800-241-9882 Ext. 100 WIRE TRANSFER INFORMATION OVERNIGHT ADDRESS r , BANK: South Trust Bank of Georgia Solarcom LLC ACCOUNT: Solarcom LLC BANK ROUTING: 061000256 One Sun Court ACCOUNT#: 68889606 SWIFT CODE: SOTRUS44 Norcross, GA 30092 .'.;;,;;i•• ltii Tà4fr 1ocan'row 4,500.00 .00 .00 .00 4,500.00 .t•g-; to*Tio#4, 4,500.00 Remit Tot D . IflY01q . Page PO Box 105544 112/31/2002 I I 840925 I I 1 of 1 Atlanta, GA 30348-5544 Wes`- (770).449-6116(phone) • !�dlhM. �s Order(770)582-8836(fax) I` 174655 I I 358914 I Federal Tax ID#41-1254123 N0LA - - Sold Tbc Shipped To: Attn: Accts Payable Monroe County Data Center Monroe County Govt Tech Svc 1200 Truman Ave . 1200 Truman Ave Suite 211 Suite 211 Key West, FL 33040 Key West, FL 33040 Eleileg Petty. . 1 Pilichal y 235369 DUE UPON RECEIPT Janice Long 11 • "`� Y a:a ..., " .. F • 15 STORAGEUNIT 10GB Storage Unit 1 C9572C8 HP 1/8 SureStore Ultrium Autoloader TL 4,500.0 SERIAL# DEH2L01601 1 08K0322 IBM OBI-IBM 146G8 U320 68P Drive SERIAL# ECV18RGB / . -') --1 (((JJJJJ 1 Lit ' Ho , \. , -) . t ..._ For questions concerning this invoice call Michael Brunet at 800-241-9882 Ext. 100 WIRE TRANSFER INFORMATION OVERNIGHT ADDRESS BANK: South Trust Bank of Georgia Solarcom LLC ACCOUNT: Solarcom LLC BANK ROUTING: 061000256 One Sun Court ACCOUNT#: 68889606 SWIFT CODE: SOTRUS44 Norcross, GA 30092 Fnikht Taft PO 44plfon tuba 4,500.00 13.00 .00 .00 4,513.00 IAmoileit Di a(alit ,•tt _..'.-_;rSu .;,.- 0..;.. . 4,513.00 Exhibit AC Documentation on Christmas Party r Sep 24 03 09: 19a James L KODer L.m k..,, i - - • -Z %i' BOARD OF COUNTY COMMISSIONERS —1 I ;I ^�` Mayor Dixie M.Spehar, District 1 .� •�. Mayor Pro Tern Murray E. Nelson, District 5 0 U NTY 0 M 0 N RO E _� - ;,. .11" George Neugent, District z KEY WEST FLOFIDA33040 "} :� .fir- Charles"Sonny"McCoy, District 3 ' (3051 294.4641 .�I �; .1 . David P. Rice, District 4 5 ',0a-Vil U, . ,__, - , , To: James L. Roberts From: Todd Erickson Date: February 20, 2003 RE: Documentation • • Per your request, this document Is my acknowledgement and disclosure of the activities that surrounded the Christmas party during December 2002. Howard Computers had approached me about doing something for my staff during the Christmas season. I indicated to them that I was having a staff party and they asked if they could participate. I - ' thought that it would be fine, as this was a function for the whole department, and they contributed a cheese and a • vegetable tray (approx value $125 ea.). Janice Long of Solarcom, had heard of the event and wanted to know if she could attend, and she offered to pay for her and her spouses expenses (approx $100), and I accepted. I understand now that It is unacceptable to receive any gifts over $25 dollars from anyone the County does business with. I will make sure that this type of activity never happens again. • c ..--- -------- 7.1"--------.--- Todd Erickson Exhibit AD E-mail Correspondence Between Former Director and SBC From: Erickson-Todd Sent: Thursday, August 07, 2003 2:05 PM - ' To: 'MAETZ, MIKE (AIT)' Cc: Guerra-Maria; Roth-Cee Subject: RE: Todd From Monroe Mike, socuartittsibmit 0116106it Vie timid it, since there is really no method for us to receive money. I will have Maria or Cee send you the info they have on this. Thx Todd Erickson Director of Technical Service Monroe County, Florida (305) 295-5110 - Office (305) 295-5130 - Direct (305) 295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 ~, Original Message From: MAETZ, MIKE (AIT) [mailto:mm1416@sbc.com] Sent: Thursday, August 07, 2003 10:12 AM To: 'Erickson-Todd@monroecounty-fl.gov' Subject: RE: Todd From Monroe Hey Todd -sorry for taking so long to get back to you on this -I had a little snag. I tried to verify how much credit you have and it seems that all the accounts that I have for Monroe have zero balances. Not that that is correct-but did you get an email from SBC that you can forward me that states that you have a credit to use? I am just trying to track it down. Or can you tell me who you might have talked to? Thanks! Mike Original Message From: Erickson-Todd@monroecounty-fl.gov [mailto:Erickson-Todd@monroecounty-fl.gov] Sent: Friday, August 01, 2003 11:11 AM To: MAETZ, MIKE (AIT) Subject: RE: Todd From Monroe Mike, Here is a list of parts that I am interested in from Allied Telesyn. From top to bottom in order of preference. Mix and match to get to the amount of our credit. 10/3/2003 Thx AT-G8LX10 AT-G8SX AT-WL2411 AT-WCL007-001 AT-WR2411 Todd Erickson Director of Technical Service Monroe County, Florida (305)295-5110 - Office (305) 295-5130 - Direct (305)295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 Original Message From: MAETZ, MIKE (AlT) [mailto:mm1416@sbc.com] Sent: Tuesday, July 29, 2003 4:00 PM To: 'Erickson-Todd@monroecounty-fl.gov' Subject: RE: Todd From Monroe This is correct-thanks. Original Message From: Erickson-Todd@monroecounty-fl.gov [mailto:Erickson-Todd@monroecounty- fl.gov] Sent: Tuesday, July 29, 2003 3:57 PM To: MAETZ, MIKE (AIT) Subject:Todd From Monroe Please confirm that you got this and the amount of credit. Todd Erickson Director of Technical Service 1200 Truman Ave STE 211 Key West, FL 33040 305-295-5110 10/3/2003 a 1481. a va I From: Erickson-Todd Sent: Tuesday, August 19, 2003 8:11 AM To: 'MAETZ, MIKE (APT)' Cc: Guerra-Maria Subject: RE: Order Update Thank you Mike! Todd Erickson Director of Technical Service Monroe County, Florida (305) 295-5110 - Office (305) 295-5130 - Direct (305)295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 Original Message From: MAETZ, MIKE (AIT) [mailto:mm1416@sbc.com] Sent: Monday, August 18, 2003 2:43 PM To: 'Erickson-Todd@monroecounty-fl.gov' Subject: Order Update Todd -just wanted to let you know that I got an order placed for you for(7) of these for you and you should see them this week. Please let me know if you need anything else. Thanks for your patience on this -sorry for the delay. Thanks again, Mike Original Message From: Erickson-Todd@monroecounty-fl.gov [mailto:Erickson-Todd@monroecounty-fl.gov] Sent: Thursday, August 14, 2003 8:24 AM To: MAETZ, MIKE (AIT) Subject: RE: Quote Mike, j Thank you, Todd Erickson Director of Technical Service Monroe County, Florida 305 295-5110 - Office (305) 295-5130 - Direct (305) 295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 10/3/2003 , Original Message From: MAETZ, MIKE (AIT) [mailto:mm1416@sbc.com] Sent: Thursday, August 07, 2003 2:24 PM To: 'Erickson-Todd@monroecounty-fl.gov' Subject: Quote Todd - I checked to see if I had these below the only one I have is G8SX- I have 17 of those. The first and last part#are not in stock and the middle two are not valid part#'s. Let me know what you would like me to do. Thanks! Mike Original Message From: Erickson-Todd@monroecounty-fl.gov [mailto:Erickson-Todd@monroecounty- fl.gov] Sent: Friday, August 01, 2003 11:11 AM To: MAETZ, MIKE (AIT) Subject: RE: Todd From Monroe Mike, • <44 Thx AT-G8LX10 AT-G8SX AT-WL2411 AT-1NCL007-001 AT-WR2411 Todd Erickson Director of Technical Service Monroe County, Florida (305) 295-5110 -Office (305) 295-5130 -Direct (305) 295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 Original Message From: MAETZ, MIKE (AIT) [mailto:mm1416@sbc.com] Sent: Tuesday, July 29, 2003 4:00 PM To: 'Erickson-Todd@monroecounty-fl.gov' Subject: RE: Todd From Monroe This is correct-thanks. Original Message From: Erickson-Todd@monroecounty-fl.gov [mailto:Erickson- • 10/3/2003 Todd@monroecounty-fl.gov] Sent: Tuesday, July 29, 2003 3:57 PM To: MAETZ, MIKE (AIT) Subject: Todd From Monroe Please confirm that you got this and the amount of credit. Todd Erickson Director of Technical Service 1200 Truman Ave STE 211 Key West, FL 33040 305-295-5110 I -z 10/3/2003 Exhibit AE E-mail From Howard Computers Page 1 of 2 From: "Tasha Hodges" <thodges@howardcomputers.com> To: "'Patty Sutton'" <psutton@monroe-clerk.com> Sent: Monday, September 22, 2003 1:38 PM Subject: RE: UPDATED STANDARD QUOTE Okay,I see right off the price difference. The monitor that you guys get is a flat screen not a LCD(flat Panel)monitor which is approx$340 price difference. If you configure the same system except put the monitor as the NEC AS70M,which is approx.$15 less than the monitor that you get,you should get the following breakdown: System: 1429.97 Citrix:$320 Microsoft Exchange:$73 Totaling$1822.97 We than looked at the total amount of desktops that where projected to be bought over the next year which was 200,based on a telephone conversation with Todd,and I relayed the message to one of the people who determine our special pricing guidelines and they priced the system at the$1718 per system. As for the notebooks they where priced as onsies. If you need more of an explanation please let me know which areas you need me to put more emphasis on. Please let me know if this will do!! Thanks- Tasha Hodges Howard Computers Inside Sales Representative Toll Free: 888-912-3151 Direct:601-399-5058 Fax: 601-399-5077 Email:thodgesehowardcomputers.com Original Message From: Patty Sutton[mailto:psutton@monroe-clerk.com] Sent:Monday,September 22, 2003 11:24 AM To:Tasha Hodges Subject: Re: UPDATED STANDARD QUOTE Tasha, I have compared the current quote you provided for the County with the quote pricing for State Contract#250-000-03-1 and I was able to create almost the same piece of equipment with the exception of the monitor. The cost on the website is approx.$2,193 and the quote to Todd Erickson on 4/30/03 is$1,718. We have discussed that the quote you provided Todd was based on a quantity of 200. Again,will you please provide the documentation to support your pricing or provide a written explanation. A difference of$475 seems rather substantial for one desktop computer with the same system requirements. I also compared quote#254309 for notebooks to the current notebook on your website and the pricing was relatively the same. Was this based on individual purchases of notebooks rather than 200? Thank you for your help. Patty Sutton Original Message From: Tasha Hodges To: 'psutton@monroe-clerk.com'. Sent: Wednesday, September 17, 2003 4:24 PM Subject: FW: UPDATED STANDARD QUOTE This is the standard desktop Exhibit AF Memorandum From Division Director of Management Services • I BOARD OF COU NTY COMMISSIONERS O U N TY o M O N ROE '' �:;1 ''� Mayor Dixie M.Spelur,District) Mayor Pro Tem Murray E.Nelson,District 5 KEY WEST FLORIDA 33040 , Charles"Sonny"McCoy,District 3 ! ) t L t y I George Neugent,District 2 i i.l ..c r,,` .._r David Rice,District 4 Management Services Division � c.;>^I 1N .„ ; 1100 Simonton • '`� - Key West,FL 33040 , (305)292-4537 MEMORANDUM Date: October 1, 2003 To: Danny Kolhage 61JP(j/L Clerk of the Court (� i . From: Sheila A. Bar. • Division Difect anagement Services Subject: Cost comparis between Dell&Howard Recently when you asked for assistance from the Technical Services staff regarding the cost comparison — between computers from Dell and from Howard, I believed it to be a simple process. Attached you will find a sheet (labeled A) that shows the vendors we have used since 2001 and a spread of the prices we have paid for computer and computer related items. The Sheet labeled B was prepared by Technical -- Services using the State Contract information for both Howard & Dell Computers. The primary difference is the inclusion of the Citrix License with the Howard Computer. Subtracting that amount the Howard is about$109 higher than Dell. The email labeled C is the request from purchasing for a quote from both Howard & Dell. The quote from Dell is labeled D and it does not have the Citrix License and the requested 52X cdrom was quoted as 48x cdrom. There quote is$50 less than that shown on sheet B. The Howard quote (labeled F) has the Citrix license and with an estimated amount removed, it is about $400 higher than the Dell Quote. Dell has been requested to quote the Citrix to us, but as of this time, they have not done so. Attached items labeled E are the quotes received from Howard through Technical Services earlier this year in response to what would be the costs for the budget process. The email references changes in the way the computers and software are purchased. I have spoken to several staff members to see what advantage we have with one computer over another. There are mixed feelings as to which computer is the best. The most prevalent feeling is that when we must add things to the computers we order, we get the best product from Howard. It has been very difficult to get a comparison where I felt we were comparing apples to apples. The two basic quotes compared from the State Contract site are very close with Howard being slightly higher, but there are slight differences between the equipment ordered. Hopefully this can help you. If I can be for additional assistance to you, please advise. � � 1 Exhibit AG Memorandum From Social Services MEMORANDUM TO: Danny L. Kolhage Clerk of Court FROM: Louis LaTorre, Director �- Social Services DATE: August 28, 2003 RE: Social Services Department/Computers Please see the attached documentation pertaining to the transfer of several computers in the Social Services Offices that were turned over to the Tech Services Department on 8/12/03. I discussed this problem with Ms. Sheila Barker and showed her all the computers, which she said she would handle. We were asked to transfer them to Tech Services, which we did. Please be advised that to the best of my knowledge, every one of the computers were in working condition at the time they were replaced by Tech Services for the purpose of upgrading our current system. During this process of upgrading the system, I had expressed to Tech Services staff that I wanted to see these computers installed in the four Sr. Citizen Centers. The main reason we transferred these computers to Tech Services was because the computer storage area was desperately needed for personnel. So, that is why we insisted that all of the computers needed to be transferred to Tech Services and relocated to their offices at the Harvey Building. Attachment Cc: Sheila Barker, Director/Administration Exhibit AH August 27, 2003 Notes - SEP—1 5-03 12: 19 Fkurt:PNJNievz t.va.+M L . . - -- - --- — Mark Anderson notes August 27, 2003 On Monday, August 11, 2003, Todd approached Mark and asked how often the dumpster was emptied. Mark replied that it was emptied twice per week. Todd suggested that the computers should be put out bit by bit. Mark asked Todd if he had received approval to dispose of the equipment. Todd replied that the item was going to be bulked on the next commission agenda and that the Board has always approved his requests and if he was denied, he would just play stupid. Mark reports that the item didn't make it on the agenda for the August 20th meeting. Exhibit AI July 9, 2003 E-mails From: Erickson-Todd Sent: Wednesday, July 09, 2003 4:23 PM To: 'Ron Tarro' Subject: RE: remote access options for JAZZ customers URGENT Ron, I can turn back on the remote access for exchange, but it was presenting a very large security hole and I have spent the better part of a day trying to clean up all of applications that hackers had loaded on that box. Luckily none of them were very intrusive, but it only takes one to create a major outage. I am in complete agreement that high availability needs to one of the first concerns. Todd Erickson Director of Technical Service 1200 Truman Ave STE 211 Key West, FL 33040 305-295-5110 Original Message From: Ron Tarro [mailto:rjtarro@sddsystems.com] Sent: Wednesday, July 09, 2003 9:50 AM To: Steven C. Gaudreau; 'Erickson-Todd@monroecounty-fl.gov' ; Dina Tarro; Ron Grau Subject: RE: remote access options for JAZZ customers URGENT Whatever we do . . . . 1. Keith is in Hawaii and has demos off of our servers today. Make sure that they run. 2. Our rollover of systems two weeks ago left our demo server down and our remote access to SDD disabled. (the later is still down) . We need to have a high availability attitude when rolling our systems over. Original Message Frcr: S=ever. C. Ga-_dreau Sent: Wednesday, July C9, 2CC3 9:22 AM To: 'Erickson-Todd@monroecounty-fl.gov' ; Ron Tarro; Dina Tarro; Ron Grau Cc: Steven C. Gaudreau Subject: RE: remote access options for JAZZ customers URGENT Todd, My question was who turned the firewall of hear at SDD. This is the my concern with more control over who accesses and does what on the machine. The JDT folks just go back there and turn things off. I feel in the end the more control one individual has over the computer room the less problems will occur. This will prevent us from repeating things over and over again. This room should be on lock down and access should be limited. I knol, there was a rush on the Europe deal ,but in the end this still cost us time and work as it is know. That's just my opinion. Tx's Steven Original Message From: Erickson-Todd@monroecounty-fl.gov [mailto:Erickscn-Todd@monrcecounty-fl.gov] Sent: Thursday, July 03, 20C3 10:59 AM To: rjtarro@sddsystems.com; dgtarrc@sddsystems.com; RJGRAU@sddsystems.com Cc: STEVENG@sddsystems .com Subject: RE: remote access options for JAZZ customers URGENT Ron T, 1 I can get it working again, but I have to reboot the server a few times and I will probably need Steven to fix any Progress issues that may arise. I would have done it last night, but I did not want to reboot the server if Steven was not going to be in, in case there was a problem. I estimate only and hour or 2 to get the demo back working (it was - working when I left and thru Tuesday. The internet hacking may seem like a nuisance, but I am concerned that they could actually get control of the workstation and be able to do some real damage some day. If Steven will be in on Monday, I will get it working again this weekend and reactivate the personal firewall. That should help keep it working for a while. Let me know if this is OK. Todd Erickson Director of Technical Service Monroe County, Florida (305) 295-5110 - Office (305) 295-5130 - Direct (305) 295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 Original Message From: Ron Tarro [mailto:rjtarro@sddsystems.com] Sent: Thursday, July 03, 2003 10:38 AM To: 'Erickson-Todd@monroecounty-fl.gov' ; Dina Tarro; Ron Grau Cc: Steven C. Gaudreau Subject: RE: remote access options for JAll customers URGENT Todd. Need your help. Is "fixing" the Citrix a big deal time wise? We have a customer - demo today and another demo over Citrix next week. Can this thing be turned on fairly easily (if even temporarily) . Original Message - From: Erickson-Todd@monroecounty-fl.gov [mailto:Erickson-Todd@monroecounty-fl.gov] Sent: Thursday, July 03, 2003 8:51 AM To: dgtarro@sddsystems.com; RJGRAU@sddsystems .com; rjtarro@sddsystems.com Cc: STEVENG@sddsystems.com - Subject: PE: remote access options for JAll customers Everyone, Last night I rernoted in to finish the web configuration and I found that the firewall the Steven had installed had been disabled. Upon further investigation I found that the Citri: server had already been hacked into, and several registry entries had been modified and a: application installed. To fix these issues, I would have had to reboot the server a few times and it may have affected the already installed applications. Knowing that Steven wa. off today, I did not want to begin the process of fixing it, but really I don't know that it will be a good use of my time to continue to fix the Citrix and SDD01 until a firewall can be installed. If the watchguard is to complex to install, I can recommend other options that can get the job done, but really the watchguard box is the way to go. Let me know how you would like me to proceed. I can spend the time to repair both servers but it is likely that we will be spending more time in the future until we have a permanent way to prevent this from happening. Todd Erickson Director of Technical Service Monroe County, Florida (305) 295-5110 - Office (305) 295-5130 - Direct (305) 295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 2 Exhibit AJ April 23, 2003 E-mails � . 1 From: Erickson-Todd Sent: Wednesday, April 23, 2003 3:12 PM To: 'Lori Longstreth' Subject: RE: Jon Lori, Please email me jon's password and I will log in as him and find out what is going on. Thx Todd Erickson Director of Technical Service Monroe County, Florida (305) 295-5110 - Office (305) 295-5130 - Direct (305) 295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 Original Message From: Lori Longstreth [mailto:LoriL@johnsoninsure.com] Sent: Wednesday, April 23, 2003 11:46 AM To: Erickson-Todd@monroecounty-fl.com Subject: Jon FYI---Just'., - .1-;this weekend and have a chance to check...Jon still cannot pull up any docume •ets one query box on top of another, but none of the documents ever show) .A so •""-' w weeks he cannot pull up a word document. When he clicks to Add a document in TA , -fter he chooses the letter he wants&clicks OK, the letter should come up so that he can make any chap. -s, but it does not. Instead, the next step is what comes up where you choose to queue for closeday o save and exit. Then an error message appears.. "16389 Method of Object failed Details says intam letter.32. I am checking on the knowlege base. If I find the answer I will let you know. Thanks!, VII. Auditee Responses 1 --{ • BOARD OF COUNTY COMMISSIONERS OUNTYrMON R0E -� ��KEY WEST LORIDA 33040 �^ ' �``-1�'.` ''. Mayor Pro Tern David Rice,District 4 (305)294 4641 • Dixie S ehar,District 1 County ,� �, l Administrator � t 1�� g George Neugent,District 2 Charles"Sonny"McCoy,District 3 1100 Simonton . N � ; � Key West , FL 33040 (305) 292-4537 MEMORANDUM Date: February 25, 2004 To: Danny Kolhage Clerk of the Court • From: James L. Roberts County Administrator r �5 Subject: Preliminary Audit Report of Monroe County Technical Services Department Purchasing Department The Administration has reviewed the comments by the Internal Audit Department in reference to the Department of Technical Services. There is a specific response to each of the audit findings. However, a brief history leading up to the identification of problems identified in this audit would be helpful. Monroe County, over the years, has slowly developed its capacity to utilize computerization to assist with its operation. From the mid 1990's, the County emerged from its reliance upon an aging AS400 centralized system and moved into the world of local and wide area network. This allowed not only for greater efficiency and effectiveness but also for a wider range of opportunities to utilize computerization for a wide variety of subject areas. That step was accompanied by a standardization of the types of hardware and software that standardized the cost to the County and created a technical services function which had greater control over all computerized operations in the County. In fact, service was also provided in some cases to Constitutional Officers and outside public agencies. At the same time, the County's utilization of the television station Channel 16 was increasing and becoming a more important part of sharing public information and meetings of interest to citizens. It even expanded to include coverage of meetings of other governmental entities. The telecommunications aspect of the Technical Services Department also continued to grow and became more important not only in reference to County operations directly under the Board of County Commissioners but also to the Constitutional Officers. At about the time the County was considering expanding its utilization of computer technology and outlining a five-year program for advancement, it was also necessary to search 1 At about the time the County was considering expanding its utilization of computer technology and outlining a five-year program for advancement, it was also necessary to search for a new Director of Technical Services. It was an extensive search with the ultimate selection of Mr. Todd Erickson to be the Director. That selection was recommended by the County Administrator to the Board of County Commissioners and confirmed. Mr. Erickson immediately began to impress all concerned with his knowledge, energy and enthusiasm as well as his creativity in utilizing technology. Mr. Erickson did not have public sector experience prior to coming to Monroe County. His experiences in the private sector were different than the challenges he faced with Monroe County. On three separate occasions (with at least one being attended by a supervisor within the Technical Services Department), the Administrator advised Mr. Erickson of the need to be familiar with and adjust to the manner in which the public sector handles its procurement and i other policies relating to the conduct of public business. Subsequently, during the Director's employment, the Administrator discussed with Mr. Erickson the fact that although he appeared to be very creative and moving the department forward very quickly, he was not following many of the appropriate steps. Subsequent to that, in December of 2002, the responsibility for overseeing the Technical Services Department and the Director was transferred to the Management Services Division. Issues pertaining to Mr. Erickson's style of management and his method of working were discussed with the Director of the Division and she began oversight. As time progressed, and as identified in the audit, problems continued to appear. Although at that time they did not appear to arise to the level of issues identified in the audit, concern was growing. When information was pointed out by staff of some of the problems in reference to various purchases, the Administrator conferred with the County Attorney and requested the Clerk of the Court to undertake an audit of all purchasing practices since the new Director assumed the position. An internal Administration review resulted in the Administrator suspending the Director pending the review of allegations at a predetermination hearing. The allegations did not cover all of the issues that were ultimately found by the internal auditors. The hearing was held but, prior to the issuance of the Administrator's determination of what discipline would be appropriate, up to and including dismissal, the Director resigned his position. The Administration has always viewed the internal audit conducted by the office of the Clerk of the Court.as management improvement tools. The egregious nature of these findings fully demonstrates the necessity of a new management relationship. The Administrator and the Director of the Division of Management Services have been speaking with the Monroe County Sheriff in reference to managerial and technical oversight. This audit report will certainly go a long way to help identify the scope of that relationship. It is, however, the Administration's conclusion that the problems identified in the audit are not just problems of too much enthusiasm or lack of attention to proper procedure. The Administration believes there is a pattern of conduct which was intentional and far beyond the lapses of managerial responsibility. Opening Response: Audit Findings A. Citrix Licenses 1. Employee doing business with their own governmental agency Finding: The County paid for 111 Citrix Xpe licenses for various County departments at $240 per license from a new vendor, Innovative Web and Video Design(IWVD), based on the recommendation of the former Director of Technical Services. Another vendor, Solarcom, LLC, agreed to provide Citrix licenses at the same price, although this quote was not submitted to the Purchasing Department. The licenses were for the implementation of a cost efficient and standardized network system for the County. The County paid a total amount of$26,640 to IWVD for the 111 licenses invoiced from IWVD. The owner of IWVD and the former Director of Technical Services were both employees at Hawk's Cay Resort until the former Director joined the County in June 2002. According to interviews with the President of IWVD, the former Director requested the licenses be invoiced in small increments and IWVD anticipated a five percent profit. IWVD billed the County on August 9, 2002 for 40 Citrix licenses totaling $9,600 on invoice# 102. The invoice was approved by the Growth Management Director and the Coordinator of Budget and Personnel. On September 10, 2002, the County check was deposited in IWVD's checking account. On September 13, 2003, IWVD kept $445 as profit and issued a check for $9,155 to Todd Erickson, former Director of Technical Services. According to interviews with the President of IWVD, the former Director of Technical Services was to supply licenses to the County with the $9,155 payment issued to the former Director. IWVD received another two payments from the County in September 2003, totaling $6,000 for 25 licenses invoiced (check#072984 for $3,120 pertaining to licenses, and check#073364 for $2,880). After receipt of the payment, IWVD issued check#2015 totaling $300 to Todd Erickson for what appears to be a five percent profit on these purchases. In October 2003, IWVD received another three payments from the County totaling $10,320 for 43 licenses invoiced. After receipt of payment, IWVD issued two additional checks to Todd Erickson, check#2017 for $204 (5% profit on County checks#203739 for $240 and #073705 for $3,840) and check#2017 for $312 (5% profit on County check#203843 for $6,240). See Exhibit A- Analysis of Citrix License Transactions and Checks Issued to Former Director of Technical Services. _ Section 112.313 (3), Florida Statutes (3), Florida Statutes, prohibits public employees from selling goods to their own agency and Section 112.313 (4), Florida Statutes, prohibits employees from accepting payment when such employee knows it was given to influence an action in which the employee was expected to participate in his or her official capacity. This matter was referred to the State Attorney's Office. i Recommendation(s): 1. County Management should pursue restitution. County Administrator's Response: 1. The issue of the Citrix licenses is quite complicated. It does appear, based upon research, that the County did not receive all that it paid for. County management will develop, in conjunction with the County Attorney's office, a demand letter seeking restitution and will aggressively follow-up to be sure that restitution occurs. 2. Unaccounted for Citrix licenses purchased Finding: During the audit, we were unable to locate, identify and determine where and if the 176 licenses the County had paid for had actually been received. In September 2003, the Monroe County Sheriffs technical staff conducted a physical search for the Citrix licenses. They were able to physically locate 105 in the Technical Services Department in Key West and they were informed another 15 were in the Marathon office. Technical Services staff in Marathon informed the auditors they did not have Citrix licenses in the Marathon office. As of September 2003, of the 176 licenses purchased by the County, 20 licenses had been activated, although the license number for the 20 was not one of the packages located in the physical search. It was determined that 65 licenses of the 105 were purchased from Howard Computers in packages of 5 and were properly accounted for and received. IWVD indicated they had invoiced Monroe County for 105 licenses when they actually invoiced and were paid for 111 licenses. See Exhibit A- Analysis of Citrix License Transactions and Checks Issued to former Director of Technical Services. IWVD informed the auditors that IWVD paid for 60 licenses that were purchased through Insight/Comark and IWVD stated the former Director of Technical Services was to supply 45 licenses to the County. This matter was referred to the State Attorney's Office. Review of the vendor report from Insight/Comark indicated 60 licenses had been billed and shipped to Monroe County and paid for by IWVD and the former Director of Technical Services. IWVD paid $10,082.08 for 40 licenses on invoice#92244873 and the former Director paid $4,994.00 for 20 licenses on invoice#9210437. See Exhibit B - Comark Invoices and Payment Information for Monroe County. IWVD informed the auditors that another 20 licenses were purchased for Monroe County and IWVD paid $5,396.31, which included sales tax of$374.48. However, Insight/Comark had billed and shipped the licenses to Hawk's Cay Resort. See Exhibit C - Comark Invoice and Payment Information for Hawk's Cay Resort. The former Director of Technical Services provided a listing of license numbers belonging to the County. The list contained license numbers for 3 packages of 20 licenses, for a total of 60. The auditors were able to determine that 20 of the licenses were identified in the physical search, 20 licenses were activated and were not found in the physical search and 20 of the licenses could not be identified. Because of incomplete information regarding license numbers and/or serial numbers of the licenses paid for, the auditors were unable to determine the actual licenses owned by the County. There appears to be a discrepancy in the number of licenses paid for by the County and it is possible the County is still due 51 licenses. However, due to the complex nature of software licensing the information is inconclusive. Recommendation(s): 1. County Management should perform an audit of all licensed software installed on County computers to ensure that the County is in compliance with Federal Copyright Laws. 2. Adequate records for software and license purchases must be maintained to properly account for licensed software and software inventory. 3. County Management should seek reimbursement for licenses not received. County Administrator's Response: 1. The Administration is aware of the issue of missing Citrix licenses. It will certainly be a primary goal to identify which licenses are actually in the County's possession and which ones either never arrived or have been misplaced. The Administration will request the assistance of the Sheriff's technical section in tracking down such problems. There will be an aggressive campaign, as identified in the last response, to seek appropriate reimbursement. Policies and procedures will be developed to be sure that such a void does not occur again. 3. County departments approving purchase of Citrix licenses not used in department Finding: The Technical Services Department issued a memo informing County departments that all new computer purchases required the purchase of certain software. See Exhibit D - Software Requirements. The departments issued purchase orders for the Citrix licenses, which is referred to as Xpe for $240.00 in the software requirements memo. The County departments purchased a total of 176 Citrix licenses at an approximate cost of$49,500 (111 licenses from IWVD and 65 from Howard Computers). Technical Services provided a listing of the departmental purchases to the auditors for the 111 licenses from IWVD. See Exhibit E- Citrix Xpe Purchases. Citrix licenses have not been implemented for usage in all departments. One example occurred in the Growth Management Department. The department had been invoiced for 40 Citrix Licenses and paid $9,600 to IWVD. See Exhibit F -IWVD Invoice for Growth Management for Citrix License Purchase. The purchase was for use with the implementation of the Pentamation program, however the Technical Services staff informed the auditors that Growth Management was using Ataman software rather than Citrix to provide the same technical needs. It was determined of the 176 Citrix licenses the County was invoiced and paid for, only 20 licenses had been activated. In October 2003, the Technical Service staff informed the auditors the only departments utilizing the Citrix licenses were Social Services, the County Administrator's Office, and the Key West Library. According to Monroe County Administrative Instruction 4404.1, "All departments are required to purchase the appropriate software licenses that are necessary for use by their employees. Technical Services will determine and account for all software licenses in keeping with Federal Copyright Laws". Licensed software purchases should include verification of the license number and/or serial number before the purchase is approved for payment. Recommendation(s): 1. Technical Services should develop procedures to account for all licensed software. 2. Technical Services should develop and have approved a long range plan to avoid unnecessary expenditures. County Administrator's Response: 1. After Technical Services audits all County equipment for licenses and software; we will develop a procedure for keeping track of all additional licenses and software purchased. No purchase orders should be paid for licenses without the license number appearing on the invoice. 2. County Management is aware that a long-range plan is needed. During the time when we had an acting Director, a plan was prepared but was put on hold when we sought to hire a permanent Director. That was an assignment given to the new Director and it was never finalized for presentation to the Board of County Commissioners. County Management will prepare a long- range plan for Board of County Commissioner approval during 2004. B. BellSouth Business Services Master Agreement 1. Contract for S49,040 for Internet Services executed by the former Director of Technical Service in violation of the Monroe County Board of County Commissioners Purchasing Policies Finding: The former Director of Technical Services executed the BellSouth Business Services Master Agreement on September 20, 2002 for Internet Services. According to an e-mail from BellSouth personnel, the BellSouth Business Service Master Agreement (BBMSA) is an umbrella agreement for all services purchased from BellSouth. The monthly recurring charge was $751 per month ($18,024 per contract) plus an installation charge of$800. The contract term was for twenty-four months. On 11/19/02 before activation of the contact described above, the former Director of Technical Services upgraded the internet access speed from 512 Kbps to 3 Mbps (PVC Option). The monthly recurring charges increased to $2,010 per month and a total of$48,240 for the contract. The order was signed by the former Director of Technical Services on the line which states "Agreed to by Monroe County BOCC". See Exhibit G- BellSouth Business Services Master Agreement and 9/23/02 and 11/19/02 Order Summaries. This contract and the related upgrade were executed in violation of the Monroe County Purchasing Policy, Chapter 2 - Authority& Duties. Section A. Board of County Commissioners states the following: Fl The Procurement Policy Office consists of the Monroe County Board of County Commissioners which is hereinafter referred to as the BOCC. 1. The BOCC shall decide all matters of policy including those referred to it by the Chief Procurement Officer. 2. No contract in excess of$1,000 for goods or services may be awarded without the approval of the Policy Office. The contact and the related upgrade were also in violation of Monroe County Purchasing Policy, Chapter 3 - Competitive Bid Process as follows: Any purchase or contract estimated to cost$25,000.01 or greater shall be awarded by competitive sealed bid Section F. Award of Bid Contract The Major, when authorized by majority vote of the BOCC, shall execute formal contracts having a binding effect upon the County. Recommendation: 1. The Technical Services Department should follow the Monroe County Purchasing Policy. 2. County Management should refer this contract to the County Attorney's Office for review. County Administrator's Response: 1. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of our policy. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve our control over purchasing. It is apparent that the former Director of Technical Services signed the Master Agreement in clear violation of County policy. 2. The Master Agreement is a mechanism where changes can be made to facilitate the smooth operation of phone systems and equipment for the county. Having a contact person to authorize additions and subtractions to this contract of a minor nature is one way to facilitate phone service within the county. The policy will be reviewed for additional clarification and procedures to prevent changes in total dollar amount that exceed signature authority. This contract will be referred to the County Attorney to see what action needs to be taken to conform to the Purchasing Policy. 2. Contract for S15,076 for unnecessary Internet Services in Marathon executed by the former Director of Technical Service Finding: , I The former Director of Technical Services executed an order form for Internet Services at the Marathon Government Center. The monthly recurring charge is $599 per month ($14,376 per contract) plus an additional installation charge of$800. The contract term is for twenty-four months. See Exhibit H- Order Form for Marathon Internet Services. It was determined the services would not work properly and the service should have been disconnected in late December 2002. In an e-mail from Technical Services staff in July 2003, the - charge was questioned and a credit was requested for the last five billings at $599 per month. In an e-mail from the former Director of Technical Services to BellSouth he indicated that it was to be turned off with no contract penalty. The e-mail indicated that the former Director was aware a contract had been created and executed. This contract and the related upgrade were executed in violation of the Monroe County Purchasing Policy, Chapter 2 - Authority& Duties. Section A. Board of County Commissioners states the following: The Procurement Policy Office consists of the Monroe County Board of County Commissioners which is hereinafter referred to as the BOCC. 1. The BOCC shall decide all matters of policy including those referred to it by the Chief Procurement Officer. 2. No contract in excess of$1,000 for goods or services may be awarded without the approval of the Policy Office. Recommendation: 1. The Technical Services Department should follow the Monroe County Purchasing Policy. 2. County Management should ensure the service is removed and the credit is received from BellSouth. County Administrator's Response: 1. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of our policy. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve our control over purchasing. It is apparent that the former Director of Technical Services signed the order form in clear violation of County policy. 2. Service has been turned off and we will check with the County Attorney to see if we are able to obtain restitution for service that did not have proper authorization. 3. The former Director of Technical Services designated himself as Agent for Monroe County BOCC to add services to BellSouth contracts Findina: BellSouth Business Services Master Agreement is an instrument used as an umbrella agreement for additional purchase contracts from BellSouth to reduce the amount of paperwork involved when ordering additional services. The former Director of Technical Services established the agreement in September 2002 and was provided the opportunity to order additional County services based on his sole discretion. The former Director obtained a contract for Internet Service in the amount of$49,040 in Key West, Internet Service in the amount of$15,076 in Marathon and a Virtual Personal Network (VPN) contract in the amount of$28,646. During negotiations for the services from BellSouth and also changes in the monthly billings, the Technical Services staff inquired about the authorization of the additional services from BellSouth. It was determined the former Director executed the agreement in the name of Monroe County BOCC without the BOCC approval. See Exhibit G-BellSouth Business Services Master Agreement. In addition to signing the Master Agreement, the former Director provided BellSouth a Letter of Agency that authorized him to place and coordinate orders for communications services and facilities and/or otherwise deal with and perform all ancillary and related matters. The document was provided to BellSouth on County letterhead signed by the former Director of Technical Services designating himself as the Authorized Agent for the Monroe County BOCC. See Exhibit I -Letter of Agency/Authorization. Recommendation: 1. County Management should monitor manager's and employee's activities for compliance with Monroe County policies and procedures. - 2. County Management should refer this contract to the County Attorney's Office for review. County Administrator's Response: 1. When the monitoring process was beginning to reveal potential discrepancies, the County Administrator requested the audit to get to the full of extent of any violations. The former Director of Technical Services intentionally signed this Agreement and took subsequent actions in violation of County policies and procedures. 2. The Master Agreement is a mechanism where changes can be made to facilitate the smooth operation of phone systems and equipment for the county. Having a contact person to authorize additions and subtractions to this contract of a minor nature is one way to facilitate phone service within the county. The policy will be reviewed for additional clarification and procedures to prevent changes in total dollar amount that exceed our signature authority. This contract will be referred to the County Attorney to see what action needs to be taken to conform to the Purchasing Policy. C. Cabling Projects 1. Dedicated BellSouth Technician not used in cabling projects resulting in unnecessary labor expenses paid of$5,382. _ Finding: The County has a contract in the amount of$163,200 with BellSouth Communication Systems, Y , LLC for a Dedicated Technician to work on the County's telephone lines. The contract states "The Dedicated Technician shall be primarily to provide the system warranty/maintenance work and secondarily, with time permitting, to provide incidental labor for moves, adds and changes". 1 Traditionally, cable installation for Monroe County has been performed by the BellSouth Dedicated Technician. A new vendor, Crosspoint Solutions, Inc., was chosen by the former Director of Technical Services to provide cable installation for several different projects within the County beginning in March 2003. See Exhibit J-Memo From Former Director of Technical Service on Change in Computer Cabling Procedure. The President of Crosspoint Solutions, Inc., informed the auditors he had performed work at Hawk's Cay Resort and was referred to the County by Innovative Web and Video Design. The former Director of Technical Services and the owner of Innovative Web and Video Design worked together as employees of Hawk's Cay Resort. The vendor was paid $9,981.97 for labor and materials. Of the total paid $5,382 was labor to install the cable lines. The Dedicated Technician stated he would have performed the cable installations at no additional labor cost to the County. See Exhibit K -Letters from BellSouth Dedicated Technician. Recommendation(s): 1. County Management should confirm the necessity for private contractors before approving their use. County Administrator's Response: 1. The contract with BellSouth Communication states that "The Dedicated Technician shall be primarily to provide the system warranty/maintenance work and secondarily, with time permitting, to provide incidental labor for moves, adds and changes". This wording leaves open the option of having this work done by other contractors. The letter, Exhibit J, clearly indicates that the intention was to hire additional contractors to complete the necessary wiring. When questioned by management about this practice, it was explained by the department head that it should help accomplish the wiring at an accelerated pace to complete long-overdue projects. Management is always trying to get the best service at the lowest prices, but sometimes service is the guiding priority and not price. Hiring outside labor is not uncommon for county projects. It is, and should continue to be, a management prerogative within purchasing guidelines, to secure the services needed. However, in this case, there appears to be a relationship between the former Director of Technical Services and vendors utilized which lead to inappropriate business decisions. 2. Second quote originally not provided for cable project and then inflated per instructions from the former Director of Technical Services. Finding: The Technical Services Department approved the Request to Purchase, issued to Crosspoint Solutions, Inc., in the amount of$9,985.72 for cabling at the County Attorney's Office. Purchase order 238545 was subsequently voided by the Purchasing Department because a second quote wasn't received. See Exhibit L -Purchase Order 238545, Request to Purchase and Quote. Monroe County BOCC Purchasing Policies, Chapter 2 - requires purchasing amounts from $5,000 to $10,000 to have two or more written quotes. The former Director was informed that a second quote was necessary by the Purchasing I I Department and he then requested the BellSouth Dedicated Technician to quote the project. The original quote from the BellSouth Dedicated Technician was for a total of$5,926.49. Crosspoint's quote included $3,268 of labor to install, the quote from the Technician included no labor charges. The Technician stated he was instructed by the former Director of Technical Services to issue a higher quote because the County Attorney was willing to spend $10,000 on the project. The next quote to the former Director was for$7,368.17. Again, the Technician was told to increase the quote. The final quote given to the former Director was $7,930.17 for listed materials, $1,500 in miscellaneous materials, and $120 for shipping. The quote totaled $9,550.17 and the work was performed by BellSouth. See Exhibit K-Letters from BellSouth Dedicated Technician. The Technician was later told by the former Director to order a black box switch part #KV6112FA for$1,875.01 using the funds for miscellaneous material. The black box was not used by the County Attorney's Office and was installed in the computer room at 1200 Truman Avenue for use by the Technical Services Department. Vendors should not be instructed to inflate their quotes or purchase material that is not needed for the project. Fixed assets become the responsibility of the department purchasing. The Clerk's Finance Department needs accurate information to record fixed assets and their location. Recommendation(s): • 1. The Technical Services Department should follow Monroe County Purchasing Policies. 2. The fixed assets charged to the County Attorney's Office should be transferred to the Technical Services Department. County Administrator's Response: 1. It is critical that all departments follow our policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of policy. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are beingexamined for necessary ary changes to improve our control over purchasing. This is another example of the former Director intentionally ignoring County policy, appropriate procedures and good business practice. 2. Management concurs with the audit's recommendation. D. Audio Visual Innovations Contract 1. Adjustments to Audio Visual Innovations contract Finding: The former Director of Technical Services submitted a contract to the Monroe County BOCC on February 19, 2003 to replace the existing visual control system at Marathon EOC for a total project cost of$47,670.03 stating it was an emergency. The contract was approved as Agenda Item D40. See Exhibit M-BOCC Agenda Item Summary D40, February 19, 2003. The Assistant County Attorney returned the contract to Technical Services stating "Please be advised that the Insight Global Finance, Inc. Contract placed before the County Commission at the i I February 19, 2003 meeting is not the same as the documents which were submitted to the Clerk of Court for execution". See Exhibit N- March 7, 2003 Memorandum. A new quote for equipment costs of$43,495.37 was received because the original quote was nearly a year old. See Exhibit 0 - Revised March 9, 2003 Proposal. The auditors were informed that the former Director of Technical Services instructed his staff to contact Audio Visual Innovations and have them include a line item for a contingency amount of$4,174.66 and maintain the amount originally approved by the BOCC of$47,670.03. See Exhibit P -E-mail to Audio Visual Innovations and March 9, 2003 Adjusted Proposal Summary by Former Director of Technical Services. It was the former Director's intention of utilizing all funds available for the project. The changed proposal was resubmitted to the BOCC on April 16, 2003 and created the appearance the original contract had remained the same, except for an additional $10,678.17 due to interest expense for leasing. The resubmitted contract was approved for $58,348.20. See Exhibit Q -BOCC Agenda Item C27, April 16, 2003. Vendors should not be instructed to change quotes and add a contingency amount. A thorough review by management is required for all agenda items. According to Monroe County Administrative Instruction 1007.4 (2), Purpose - The Administrative Instruction is to define and promulgate the direct responsibilities of the Division Directors regarding the preparation, submission, and presentation of the MCBOCC agenda items falling within their purview to insure that said agenda items are complete, comprehensive, accurate, properly formatted and timely submitted. Recommendation: 1. The Technical Services Department should follow Monroe County Purchasing Policies. County Administrator's Response: 1. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of policy. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve our control over purchasing. Once again, the former Director of Technical Services was violating County policy and procedure to achieve whatever he viewed to be his call. In that effort, he apparently sought to misrepresent facts to the County Commission. 2. Change orders for Audio Visual Innovations contract Finding: On June 5, 2003, the audio visual project was completed and accepted by Monroe County Technical Services staff See Exhibit R - Limited Warranty Policy Sign Off Agreement. The completed cost was $34,739.69 and included change order#1 for $200.00. The actual equipment installed was completed at a cost of$21,013.31 as compared to the original equipment cost of $30,181.43. See Exhibit S -Equipment Lists. The auditor was informed by Odie Mills, Regional Director of Audio Visual Innovations, that the project was substantially less expensive than anticipated due to equipment the County was currently utilizing and capable of interfacing with the new equipment. Therefore, the scope of the contract was reduced and provided Monroe County a savings of$12,782.71. The former Director of Technical Services subsequently added an additional $12,782.71 for assets not related to the original scope of the contract. Audio Visual Innovations provided a change order summary on June 18, 2003. See Exhibit T - E-mail From Audio Visual Innovations and Change Order Summary. He requested the purchase of five additional cameras and various other equipment. Several of these items are located in the Key West Technical Services Department and are not currently being used. The Final Acceptance of Installation and Sign Off was accepted on July 24, 2003 by the former Director of Technical Services and included change order#2 in the amount of$12,782.71. See Exhibit U-Limited Warranty Policy Sign Off Agreement, Change Order#2. The final invoice for the project of$47,522.00 had the appearance of the original contract and was completed within the original approved amount. See Exhibit V-Final Invoice From Audio Visual Innovation. The auditor was informed by Audio Visual Innovations that the change orders were included in the final invoice, again giving the appearance of the original contract. Monroe County Code of Ordinance, Sec. 2-9-1(d)(e), states if a change order results in a decrease in the contract price (either the original contract price or the contract after prior change orders), the amount of that decrease may not be utilized by employees, agents or contractors of the county to fund a subsequent change order, contract amendment or any other alteration of the original scope of work without following the procedures set forth in this section. The procedures in the section requires the appropriate approval by the County Administrator or the BOCC, as well as numerous other requirements regarding change orders. Recommendation: 1. The Technical Services Department should follow Monroe County Code of Ordinances. 2. The Technical Services Department should follow Monroe County Purchasing Policies. County Administrator's Response: 1. The Monroe County Purchasing Policies will be reviewed for adequate references for ordinances that impact purchasing. When work comes in at less than original contract, it should be finalized without adding additional items/services to the contract. Any additional equipment should be purchased under purchasing rules. 2. It is critical that all departments follow policies to uphold the public trust. The audit was requested by the County Administrator to get to the bottom of rumors about violations of our policy. It took the depth of the audit to uncover many of the violations discovered in this audit. The policy and our internal procedures are being examined for necessary changes to improve our control over purchasing. Once again, it is apparent that the former Director of Technical Services intentionally violated Monroe County's Code of Ordinances and Purchasing Policies. i E. Inventory Account for Technical Services Department Finding:, The former Director of Technical Services established an asset account, 141003 - Inventory- Equipment& Supplies, in December 2002 to purchase items in larger quantities for volume savings and/or to have common items available in stock to service work orders. The inventory' was initially set up with a ceiling of$50,000. See Exhibit W-Memorandum From Former Director of Technical Services. As of September 30, 2003, the balance of the inventory account according to the Clerk's Finance Department was $57,638.38. As inventory purchases were received, the Technical Services staff would enter the items into the inventory database with a markup cost averaging 10%. Theoretically, as work orders were processed and if they required items that were maintained in the inventory, the system would automatically be updated and the inventory released. When the work order was closed an e-mail was sent to the person to confirm the parts were received. Quarterly, the Technical Services Department was to generate billing statements to the Clerk's Finance Department and charge the expense to the appropriate department for the inventory used. The system had also been designed to bill the County departments for storage and backup space. The Technical Services Department did not provide the Clerk's Finance Department timely or accurate billings for the inventory. During the 10 month period, the Finance Department received billings in the amount of$7,190.76. A physical inventory was conducted in the Technical Services Department and it was determined the items available in inventory had a value of $46,144.05. If the former Director of Technical Services included a 10% markup on the items entered in the Inventory Management System, the actual amount of the inventory value would be adjusted to $41,949.14. This represents a discrepancy of approximately$15,000.00 compared to the Finance Department general ledger records. The following example of the markup applied to the inventory for billing departments demonstrates inconsistency in the former Director's procedure: Tourist Development Council (TDC) questioned the Technical Services Department on the charge of a keyfob issued and billed to their department for $217.89. See Exhibit X-E-mail From TDC. An analysis of the inventory value for the keyfob indicated items were not valued as described by the former Director in his memo. The invoice from Insight Corporate Solutions in June 2003 for the keyfobs also includes the per seat software license in the total price. A thorough review of vendor invoices compared to the Technical Services Department inventory would be necessary to reconcile the inventory account. Inventory parts that have been used in County departments to repair computer equipment should be billed directly to those departments. During the physical inventory, several items were discovered that should have been tagged as capital assets. The Clerk's Finance Department was unable to identify the assets due to split purchase orders and incorrect invoice descriptions. As of September 30, 2003, $36,204.70 in the Technical Services Department inventory account was identified as capital assets and tagged during the audit. Review of the inventory account, accounting procedures and the general processes to maintain the account by the Clerk's Finance Department determined the account was maintained improperly and as of October 2, 2003 the account is on freeze. See Exhibit Y - Memorandum From Finance Director. Recommendation(s): 1. Technical Services should review the inventory management records and bill County departments for parts used. -- 2. Inventory items need to be adjusted to actual cost by the Technical Services Department. Counts,Administrator's Response: 1. The billing of county departments is currently on hold, until a procedure is worked out to successfully accomplish that action. Inventory accounts should not be set up without assurance that the procedure is in place to bill individual using department. The Management Services Division has been limiting and eliminating inventory accounts and procedures will be put in place to control the growth of inventory accounts. 2. Inventory has been verified at cost plus shipping and sent to Finance Director on November 2, 2003 with instructions for unaccounted for items to be billed to Technical Services as part of the close-out of FY 2003. F. Solarcom, LLC Instructed To Change Invoice Descriptions Finding: The former Director of Technical Services was restructuring the billing charges to the County departments for storage and backup of data. In an e-mail to the Division Directors and Department Heads, the former Director of Technical Services explained that each department would be billed $300.00 per 10 gigabytes of storage capacity. He explains the purchase of a larger unit rather than dozens of individual purchases as being a more complete solution. See Exhibit Z -E-mail to Division Directors/Department Heads. The former Director was working with Janice Long, Senior Account Executive of Solarcom, LLC to purchase the equipment for a larger storage solution. In a letter from Janice Long to the auditors, she indicated the total project cost for the Storage Area Network was expected to be $29,323.00. She states the former Director explained he would be preparing a method to purchase the Storage Area Network, which requires a housing device, disk drives and tape backup equipment and he created the description"HP Storage Unit 10GB" to be billed at $300 each on the invoice. The former Director explained the request was to ultimately charge back disk space to each County department that requested additional disk or storage space on the network. Solarcom agreed to produce misleading descriptions on the invoice to the County as requested by the former Director of Technical Services. See Exhibit AA- Letter From Solarcom. The equipment was split on several purchase orders with the exception of purchase order# 233986. According to Monroe County Code of Ordinance#032-1998, Competitive Bidding Procedures, Section 5.(a), a contract may not be split into multiple contracts for services, goods or public improvements for the purpose of evading the requirements of this Ordinance. The remaining three purchase orders were billed as 15 each of 10GB Storage and misrepresented the fact that the purchases were capital equipment. See Exhibit AB - Solarcom Invoices. Following is the fixed asset purchases and corresponding purchase orders: Monroe County BOCC Purchasing Policies, Chapter 2 - requires purchasing amounts from $5,000 to $10,000 to have two or more written quotes and a signature by the Division Director. In addition, equipment purchases greater than $25,000.01 requires BOCC approval. The equipment was not considered a capital purchase because the invoices indicated the purchase of(15)10GB Storage Units at $300.00. Florida Statute 272.02 requires nonconsumable purchases of$750.00 with a normal expected usage greater than one year to be captured and recorded as capital assets. During the audit, the items were identified and properly accounted for as capital assets. Recommendation(s): 1. Purchase orders should not be split to avoid purchasing limits to circumvent County policies. - 2. County personnel should not authorize payment of invoices, if verification of goods received is not complete and accurate. 3. Vague or inconsistent documentation should be questioned by the Technical Service Department staff. 4. Clerk's Finance Department should require packing slips and/or receiving reports that have been reconciled to the invoice prior to payment. County Administrator's Response: 1. Our policy prohibits splitting purchase orders. This was a clear violation of our policy. Had all purchase orders been combined into one purchase order, it still would not have been elevated to the amount that would have required a formal bid process. It could have been approved by the County Administrator with two written quotes as documentation. The apparent manipulation of the total purchases and price appears to be an attempt to avoid policy control and oversight. 2. The Administration agrees with recommendation 2 and will look for ways to enhance our policies and procedures to prevent it from happening again. 3. The Administration agrees with recommendation 3 and will look for ways to enhance our policies and procedures to prevent it from happening again. 4. The Administration agrees with recommendation 4 and thought that the Clerk's Finance Department was requiring packing slips and/or receiving reports currently. County Administrator requests the Clerk's Finance Department not to pay for any item without proper supporting documentation. G. Catered Christmas Party Finding: The Technical Services staff informed the auditors that the Sales Representative of Howard Computers, Maggie McGee, had helped cater the Christmas Party hosted by the former Director of Technical Services. Maggie McGee stated she had used her Howard Computer expense account and paid $300.00 to Great Events as a contribution to the Christmas Party. County Administration counseled the former Director in February 2003 on the receipt of gifts over $25 and requested documentation on the contributions from the vendors for the Christmas Party. In his documentation to County Administration, the former Director mentioned a $100 contribution from Solarcom and a contribution from Howard Computers of approximately $250. See Exhibit - AC -Documentation on Christmas Party. During the audit, it was revealed that Richard Spencer from Comark/Insight had also paid $200 to Great Events for the Christmas Party. The former Director did not mention this contribution to County Administration when documenting the contributions. Recommendation(s): 1. County Administration should refer this to the County Attorney's Office for review of statutory requirements. County Administrator's Response: 1. County Administrator will forward this information to the County Attorney for necessary action. Prior to the audit, the County Administrator had received information in reference to the possibility that the Christmas party was at least partially under-written by vendors. The County Administrator discussed this with the former Director of Technical Services and was assured that there was a lack of understanding of public policy, that it would not happen again, and that the amounts involved were not substantial. The amounts identified in the audit are significantly higher than represented to the Administrator by the former Director of Technical Services. H. Credit Memos From Vendors 1. Refund check returned to SBC for credit Finding: The Technical Services Department received a check for$806.25 from SBC Datacomm. The check was issued to Monroe County in July 2003 for an outstanding credit memo dated January 31, 2000. Technical Service staff informed the auditors the former Director of Technical Services requested the check be returned and a credit be issued to Monroe County to purchase additional supplies. SBC sent an e-mail to the former Director asking for additional information regarding the credit, the former Director replied that a check had been issued for approximately $800 and was returned because there was no way for the County to receive money. The former Director requested the �r purchase of an item and enough quantity to use the entire credit. See Exhibit AD - E-mail '--I Correspondence Between Former Director of Technical Service and SBC. The items were ordered and shipped to Monroe County. The auditors requested the Clerk's Finance Department to research the original credit memo and the August 18, 2003 invoice. The Finance Department did not have either document recorded in the system. All invoices and credit memos are to be forwarded to the Finance Department in order to maintain adequate accounting records. It is clear the credit memo was generated prior to the former Director's employment with the County and proper procedures in 2000 would have curtailed the manipulation of purchases. Stronger internal controls require procedures to detect receipt of invoices and credit memo. Recommendation(s): 1. Good internal accounting controls require all invoices and credit memos be forwarded to the Clerk's Finance Department to maintain adequate accounting records. County Administrator's Response: 1. Instructions on how to process credits will be issued to make this part of our Purchasing Policies&Procedures. 2. Credits due from MoreDirect, Inc. Finding: The auditors reviewed detail reports provided by all new vendors established by the former Director of Technical Services. One vendor, MoreDirect, Inc., had several credit memos that were not entered in the Clerk's finance records. A request for the Accounts Receivable Statement was made and MoreDirect informed the auditors that Monroe County had a zero balance. An inquiry was made in reference to credit memos and MoreDirect explained that credit memos issued are applied to the original invoice. Invoice#371030 in the amount of$330.00 was paid by the County on check#79285. The product was returned on credit memo #391816. The original invoice was not credited and the auditor was informed a credit of$230.00 was applied to invoice #-427644 and a $100.00 balance is due Monroe County. The auditors requested the Clerk's Finance Department to research the credit memo#391816 and invoice#427644, neither document had been recorded in the system. All invoices and credit memos are to be forwarded to the Finance Department in order to maintain adequate accounting records. Stronger internal controls require procedures to detect receipt of invoices and credit memos. Recommendation(s): 1. The Technical Services Department should request a refund check from MoreDirect and determine if other credits are due the County. 2. Good internal accounting controls require all invoices and credit memos be forwarded to the Clerk's Finance Department to maintain adequate accounting records. County Administrator's Response: 1. Technical Services Department will review all transactions with MoreDirect and request appropriate refunds/credits. I I 2. Instructions on how to process credits will be issued to make this part of our Purchasing Policies& Procedures. I. Howard Computers 1. Desktop computers purchased through Howard Computers Finding: It has been customary for the County to purchase new computers from Dell Computer Corporation and in July 2002 the former Director of Technical Services purchased 18 new desktop computers from Colfax International. In September 2002, the former Director of Technical Services again changed vendors and began purchasing new computers from Howard Computers. During the period of September 2002 to August 2003, the County purchased 74 new desktop computers and 9 notebook computers for approximately $141,000. Howard Computer Sales Representative, Maggie McGee, informed the auditors that a presentation of products was prepared for Monroe County in September 2002 prior to the new fiscal year starting. The Sales Representative indicated Monroe County had unique needs and required special configurations. Howard Computers established special pricing guidelines based on a projected purchase of 200 new desktop computers, per a conversation with the former Director of Technical Services. See Exhibit AE -E-mail From Howard Computers. Monroe County has been invoiced approximately $118,000 for 74 new desktop computers during the eleven month period. The former Director exceeded his authority based on a commitment to purchase 200 new desktop computers from Howard Computers. Howard Computers qualifies under the State of Florida's Purchasing Contract Number- 250-000- 03-01 and no additional quotes were provided, however other vendors should have been considered. The purchases were in violation of Monroe County Code of Ordinance. The Monroe County Code of Ordinance Sec. 2-541 Competitive Bidding Procedures, Section 2-541(e)(3), states the following in regards to State Contracts: When the goods or services sought are expected to cost twenty-five thousand dollars ($25,000.00) or more and are available to the county through an existing contract between a vendor and the State of Florida, the United States, or another Florida County, municipality or special district, then compliance with the terms of this section is not required. However, before any purchase is made through an existing contract, the purchasing director must first contact other South Florida vendors in order to determine if the goods or services sought are available at a lower price than the price(s) of the existing contract. If the goods or services are available from another vendor at a lower price than the existing contract, then the contract for the goods or services must be awarded to that vendor. The purchase of the goods or services sought may be made through the existing contract if none of the other vendors contacted by the purchasing director offered the goods or services at a price lower than the price of the existing contract. The Division Director of Management Services requested a cost comparison between the Dell and Howard computer. See Exhibit AF -Memorandum from Division Director of Management Services. The memorandum from the Division Director noted the primary difference between the cost of Dell and Howard Computers was the inclusion of the Citrix license at a cost of$366.22. By subtracting the Citrix cost of$366.22, it was determined the Howard computer was higher than the Dell. Recommendation(s): 1. Information Technology expenditures of this magnitude should be carefully planned, documented and approved. County Administrator's Response: 1. Information Technology does not decide who budgets a computer. Departments determine if they want and/or need to purchase new computers. At any given time, Technical Services does not plan who gets computers, but responds to who needs new computers. Information Systems publishes pricing for the budget process based on historic trends of computer replacements. County Administration will have a 5-year plan finalized and completed to the BOCC for approval during 2004. In this we will make a recommendation on the frequency of computer replacements. 2. Citrix licenses purchased through Howard Computers Finding: It was determined that as of August 2003, Howard Computer had shipped and billed for 65 Citrix licenses, manufacture part number EW24CLE0005. The licenses are invoiced individually with each computer and the licenses are shipped in packages of 5 after the purchase of 5 computers. Five licenses purchased from Howard Computers is a cost of$366.22 each for a total of $1,831.10 based on the quote provided by the Division Director of Management Services. See Exhibit AF - Memorandum from Division Director of Management Services. Citrix Corporation has a state contract number 252-036-03-1 and the suggested retail cost of the same part number of 5 is $1,333.20. This results in an overpayment of$99.58 per license or$6,472.70 for the 65 licenses purchased by Monroe County. The quote provided by Howard Computers included the Citrix license in a bundled software package and sold as part of the computer equipment and gave the impression it was a necessary part of the desktop computer purchase. Recommendation(s): 1. Management should thoroughly review quotes to determine if products included in a purchase might be more cost efficient on an individual basis. County Administrator's Response: 1. County Administrator agrees with recommendation and will have staff complete a review of quotes. Please refer to previous responses in reference Citrix licenses. J. Unauthorized Disposal of Equipment Finding: The Social Services Department had upgraded their computer system and had eleven computers that the Director of Social Services wanted to delete from the fixed asset inventory, transfer to the Technical Services Department and ultimately donate to the Senior Citizen Centers. The transfer was discussed with the Division Director of Management Services and was approved based on the storage space needed for Social Services personnel. See Exhibit AG- Memorandum From Social Services. The Social Services Department transferred the computers to the Technical Services Department with the Fixed Asset Forms and the Inventory Deletion Requests. The equipment was delivered to the Harvey Government Center and the former Director of Technical Services accepted the delivery and signed the documents. The former Director of Technical Services requested the maintenance personnel to dispose of the computers in the dumpsters. Maintenance inquired if there had been approval to dispose of the equipment and the former Director informed him it was going to be bulked on the next Commission Agenda and would be approved. See Exhibit AH- August 27, 2003 Notes. The Director of Social Services discovered the equipment had been disposed of and contacted the Clerk and the Director of Finance. The Property Clerk was requested to do an inventory of the equipment, but all the equipment had been sent to the dumpster. County procedures require the Division Director's review and approval of the Inventory Deletion Request forms prior to disposal. The forms are to be forwarded to the Clerk's Property Clerk to verify all items listed on the Inventory Deletion Request and to prepare the BOCC Agenda Item Summary and a Schedule of Surplus Items. The former Director of Technical Services circumvented County procedures. If proper procedures had been followed, the Division Director of Management Services would have approved the disposal or the donation of the equipment and prevented the misuse of surplus equipment. Recommendation(s): 1. The Technical Services Department should have followed procedures for disposal of surplus equipment. County Administrator's Response: 1. County Administrator agrees that departments should follow established procedures for the disposal of equipment. To Management's knowledge this is the first substantial and intentional case of that policy not being followed. Agenda prepared requesting Board permission to remove items from inventory. Board approved that action. K. Performance of Outside Work on Monroe County Time Finding: The President of Innovative Web & Video Design informed the auditors that the former Director of Technical Services had clients he worked for, in addition to his County position. We were informed his business name was ThinClient Consulting. The former Director previously was employed by Hawk's Cay Resort and implemented the JAZZ Accounting System for the resort. The JAZZ Enterprise Software is a development of SDD Systems and the former Director had a strong vendor relationship with SDD during the implementation at Hawk's Cay Resort. It was determined from e-mails between SDD and the former Director that he was working on a consulting basis for SDD, which occurred during County working hours. See Exhibit Al - July 9, 2003 E-mails. The Technical Services staff also informed the auditors that a software program, File Magic, was on the County server and that it is not a program used by the County. In an e-mail from one of the former Director's client, Johnson Insurance, the client referred to the program and in the response from the former Director it appeared he was able to remotely access Johnson Insurance's computer system and resolve the problem. The correspondence occurred during County business hours. See Exhibit AJ- April 23, 2003 E-mails. Recommendation(s): 1. County Administration should ensure that County employees do not conduct private business either from their public offices or during County business hours. 2. The Technical Services Department should remove any unauthorized software off the County If server. County Administrator's Resuonse: 1. It is currently against County Personnel Policy&Procedure to conduct private business either on county property or during county business hours. This action is cause for disciplinary action. Employee terminated his employment prior to this audit being finalized and this item being discovered. 2. As part of the inventory of software and licenses, we will take necessary steps to remove unauthorized software from County equipment. -i ooUNTi. V; JM•..UI�•....G Qj _, `ti=9aR - '6 ( f is '"so' CLERK OF THE CIRCUIT COURT MONROE COUNTY BRANCH OFFICE BRANCH OFFICE PLANTATION KEY MARATHON SUB COURTHOUSE MONROE COUNTY COURTHOUSE GOVERNMENT CENTER 3117 OVERSEAS HIGHWAY 500 WHITEHEAD STREET,SUITE 101 88820 OVERSEAS HIGHWAY MARATHON,FLORIDA 33050 KEY WEST,FLORIDA 33040 PLANTATION KEY,FLORIDA 33070 TEL.(305)289-6027 TEL.(305)292-3550 TEL.(305)852-7145 FAX(305)289-1745 FAX(305)295-3663 FAX(305)852-7146 January 9, 2004 • Mr. Danny L. Kolhage Clerk of the Circuit Court Re: Finance Response to Monroe County's Internal Audit of Technical Services Department Purchasing Practices Dear Mr. Kolhage: Below is the Finance Department's response to the Internal Audit of Technical Services Department Purchasing Practices: V. Audit Findings F. Solarcom, LLC Instructed to Change Invoice Description Recommendation: 4. Clerk's Finance Department should require packing slips and/or receiving reports that have been reconciled to the invoice prior to payment. Finance Department Response: Proper supporting documentation does not necessarily include packing slips and/or receiving reports. The County's procedure is for an authorized employee to sign the invoices verifyin that the goods are received and that the invoice is approvedp s was not identified by the Finance Department due to vendor collusion. The InvoiceThis f adgbeen amended according to the instructions of the authorized employee's request. Likewise, the vendor could have revised the information on the packing slips and/or receiving reports. As the Finance Department is continuously reviewing accounting internal controls,p we will reconsider implementing this suggested Sincerely, 5a &M Sandra Carlile Finance Director •