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Item N6 AUDIT REPORT OF MONROE COUNTY TECHNICAL SERVICES DEPARTMENT PURCHASING PRACTICES March 2, 2004 Prepared by: Internal Audit Department Clerk of the Circuit Court Danny L. Kolhage, Clerk Monroe County, Florida CLERK OF THE CIRCUIT COURT MONROE COUNTY BRANCH OFFICE MARATHON SUB COURTHOUSE 3117 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 TEL. (305) 289-6027 FAX (305) 289-1745 MONROE COUNTY COURTHOUSE 500 WHITEHEAD STREET, SUITE 101 KEY WEST, FLORIDA 33040 TEL. (305) 292-3550 FAX (305) 295-3663 BRANCH OFFICE PLANTATION KEY GOVERNMENT CENTER 88820 OVERSEAS HIGHWAY PLANTATION KEY, FLORIDA 33070 TEL. (305) 852-7145 FAX (305) 852-7146 March 2, 2004 The Honorable Danny L. Kolhage Clerk of the Circuit Court 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, } ( --fl, -..\(Ja %Oi~vY /?1)u~f~/)1LL Sandra L. Mathena, CPA, CFE, CIA Director of Internal Audit 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 T ABLE 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 Services Department 24-25 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 2. Credits due from MoreDirect, Inc. 30 31 I. Howard Computers 1. Desktop computers purchased through Howard Computers 2. Citrix licenses purchased through Howard Computers 32-33 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 1. 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 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 AI. July 9,2003 E-mails AJ. April 23, 2003 E-mails VII. AUDITEE RESPONSES 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. J esse 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. 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: AI. The County paid $26,640 to Innovative Web and Video Design (lWVD) 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. BI. 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. C1. 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. DI. 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. FI. 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. HI. 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 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 v. Audit Findings A. Citrix Licenses 1. Employee doing business with their own governmental agency Findin~: 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. 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, 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. 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. 8 2. Unaccounted for Citrix licenses purchased Findin~: 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 Momoe 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 Momoe County for 105 licenses when they actually invoiced and were paid for III 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 InsightlComark 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 InsightlComark indicated 60 licenses had been billed and shipped to Momoe 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 Momoe County. IWVD informed the auditors that another 20 licenses were purchased for Momoe County and IWVD paid $5,396.31, which included sales tax of $374.48. However, InsightlComark 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 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 Findine:: 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 Momoe 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 Findin~: 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: The Procurement Policy Office consists of the Monroe County Board of County Commissioners which is hereinafter referred to as the BOCe. 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 1. The Technical Services Department should follow the Momoe 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 Findin~: 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 Findine: 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. Findin~: 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 Findin~: 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. 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 Findine: 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 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 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 Findine: 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 Findine: 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: Invoice # 92811253 P.O. # 238798 Descrintion Kevfobs 25 oack 3 vr Keyfob Total Inv. + License $1,432.00 $57.28 Per Unit + 10% $63.01 Dept. BillinQ $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 F. Solarcom, LLC Instructed To Change Invoice Descriptions Findine: 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 DirectorslDepartment 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 1 OGB" 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.Oo's & Solarcom Invoices Solarcom PO #233986 PO #238475 PO #235369 PO# 235041 Descrintioll Purchase IllY. #35278 IllY. #870138 IllY. #840925 IllY. #83944' 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 $29451.00 $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 Findin~: 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 ComarklInsight 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 Findine: 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. Findin2: 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 Findin~: 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. 33 2. Citrix licenses purchased through Howard Computers Findin~: 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 Findin2: 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 Findin~: 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. 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",..... ~ 1 ~I!ft-A .:'}.'..r..illI>.........J.!~:~T'!.!.!t.~!..~E!;.'t,'~._~. _~. 2017 INNOVATIVE WEB i VIDEO DESIGN, LLC . 111 STIRRUP IQ'I' \\ oaos AD, N'T.l-I4! MAAAlKW, I L -'2955 '. . J I PAY b~.MOF -\btJl) 1Jr.al:~!~ O'TE lo"~~. ....lU;aQ_lM'[~~D1L. ~ I~ ~ ~ q~ - BukOfAmerl~~ ACHItt"'IO~m ~......-' i . I FOR~ "'f~ "O(]i!O~?" ......... ~)A- . . ~ 1tltJM6.;i I .. tf MDlWlti.., t&3MIW [..fI'81 I 1tntM 7~ .~...... ;":-j , -r=i7 { I 'i~.; ~.:; i;' c.; ;""1, ~- .. ... ---............. . I .'iJ63J Q?s 1314 f~1Sr m 1\1l It... lit. R __ ;: ~ ~=J?~~~L: .;'J~ ..; ;,J~~! \: ...:~:-:!. Capture Dat'J: 200210;!1 Sequence #: 774(1 t-31727 Page 2 of 2 Print Req.~614869 ',' 'I J D4II3lI h. - --39; 2~ , 100 _~_DOlLARS ~ ==:- -""") ., ~ '- --"~~~ p InDOOD ~o..oo... .........~1..~ - ... ~ - ..~ \1\: ~,~ 1.__ ,. Tu,~ Sap 23 22:10:.1:.7 "DT 2003 HI I 0 21 200 3 0 ~ ; 1 0 FAX 3 0 5 74 3 5 215 Hawks Cay 14I )07 BankofAine.ica . .--......- - .... ~,fJ~':...-'!.!..!..t..!.uu.uT:Tt!.... l~~.fi!'r....]a.t7 '--- ...4.____ ,..-.a -. . I INNovAnve WE..i \'!DEO DESIGN, UC m ITIUlUpm' "CODa RD. APT, 1-" 1WIA1l()N, f'l ..... ~ OM: PAY .. ~IOF_. ~OI>P %~;~ 'f",~,.~ ~~t:~(~ ~ ~~~ru~. FOA~O~- 2015 4:J .2g.Z~~ rr..n an J$~ -COLLARS ~ C5:' "'~""'f'..".r- ~ _.'- .......IIIllV'.i~.. ~-..... A. " v.fft , 7~ A, . ..' .. -.......----- ~~LO"9jfLDOjlt~... '; t . I ,I '.\ .' I' ~: )\.:t'J~~~;;;; /: '0. -.:... .. . .:.:., 1:3 J..:' -;--:;:; ! :.::.... r ; :.~ . . ~ ..~.~t. Ii..': ~.~~ ~ ',;.~ . ,',' :.',.:" . '\ ~I, \ ."" ~ " (\" ...,:\ ) \\ ", ..... .~ I I t -.. .~ .... -:- .: ~ :":;':~-" :~;' ~: ':':' ~~ :~::..:::~ ;' ,: -, ,-.- ~: ,'..-: ..:, . :.: :. .~.::=::..~.' :.~.~:;' ~ ~ Capture Date: 2C1021001 Soquence #: 674074-4:138 r I 1 Page 2 Dr 2 Print Req.#6141163 Tue 5e) 23 22:10:45 POT 2003 Exhibit B Comark Invoices and Payment Information for Monroe County 09/15/2~~3 ~3:31 813&37 {l:j {t;l CUMARK PAGE 02 Pie... remit to; COMARK CORP. SALES, INC. ~.O. BOX 70212 CHICAG01 ILLINOIS 60673-(212 B.N. 866766B~u RT rlrH~olOti".. '. ~ .:', ':. ." :,,~ :,.', . ,'. ". Bill To; 3 6 19 2 S Monroe County Booo C.. Rot.h 1200 Truman Avenue Key West FL 33040 Invoice Number Dare P/O Numbe" Sales Order No. Payer Number Account CltJrk Sales ReI' ,~o, RICBARI:, RJ' 92108437 09/25/2002 TE925 1661702 361925 K BARTELLO 2773 SPENCER Pl!Ige 1 I 1 Ship To: 36 192 5 Monroe Coun~y Boca Todd srickscn pot TE925 1200 T~uman Avenue ~ey West FL 33040 Conditions Terms of payment: Ship Via: Currency USO 30 DaY!J F!DEM I~ EXPRESS I Meterial Descriptio! Oty Price Ext, Price EW22Xl':S:1020 METAFRAMB XPE 1.0 STRT SYS 20 1 4950.00 4950.00 SubtotOll Ttl Freight Chcp 4,950.00 44.00 Total amount due 4,994.00 ~~~i 1 L.CNI./!'ua ~'_.Io" '.[ Cempeny :(~MAAIC tNC I ~oekBo. :0070272 I 11'1. : 11:. Mvdul.. : ':........---l F Dla.,~ 1iiIOfiii.'1I"". .. - C'.die: I~ ~"..I : 'O/CJe12002 I Bitch' ; 8~1 Mul,ipl..: t:'O"HiIlllOI1 : 037 Itom : 027 i hick AmOLl"1 : 4."4,00 . SLl1VtlV: -.., . ..---1 F=.'lSfi,- ~Illon'.-' ---a'Ortr., ~B~-rn~' "';1 _ Cut : 033 S..qu."e.: 212 , TOt.~ A En~lln pg,idCl C r;;~Dll !!is TcIrlIlM 14/111! I su' 1mmcf14 lCey, Fto". JJOfz I ' ....~ ,,;,;;......... CD f"I<.\rK- ~ -=' ,0)(" ~..,c;al.lt') t\\'N hUI~r<J I I'l/t .r IM\aIIl UA11C1NAL .""11 OF FI.OlIlDA I. 'ClII"If~blIW...TlDIlllJl\i1l:1 ' .' "1 '0-"'''''1 . U65 " 1_ I 4 63-21630 o,;.lt'~ 1 , I I - I $ YCft:ttt O~1c ~~hl!"'1' ~ (" a~ ~,Jl' l:bl1:r.r ffi Ea.'::" 1\. II In ~ drv.ra :2'~I(" ~~ \c6~n NY , rl r -:1:1 E. ~OOOO 2 ,.: ~<l\~d~~_~d2tf wr a. 5 (; 5 ,1'0000 r.. g ~ L.OO," {..X4t, B/7C'- ) oF2- rH\;lc, t:lJ. ""~......... !:-.nr:-r'll"';.-w"\...........~,;f.'~.J '.rr. ':'J'f':\1:j~'~Q:'~ ti.:.-=!.~~, ..".J::IU:(~u:'r~~~~-.w:r......... IBANK= ONE.J IN NOVA1'r4 W". VIDRO aa'JGN, UC _ 2022 ._. _ .' ____ tlUTlAlM'llI'twaollll'lD.~,lI.ac '~5")l'ijJ.'}..,/ C-- . ili,- i1'O -. '-l MMo\THlIN, PI. ,,0._ ..D. 1J. "'''''.. II "l~ COt/lCl.,,~:~&r~-" I ('QrrtalJ..k C ~/. (.,l~T'tJ.'I'~'~~~L . LOcllDft '0070212 1 'UJfJ., ~. - ---1$ 10, d6?.~ s".. ;X Moelule . 12 I . ." ~ "" /) I A ....- _.. ____.. .. .__ ~_o- . - .eLLMl8 '"~ ....... ;:::._....-.;.Jr.iR.tp'AIr'lI1!/ !ii\:- - :~ . II.nkafAm.rICl~ I ...,eellt . 111 ,O/2ooll I' ~ ""00... 12110/2002 ' ,......-" . ,.. ",. . al,otl , : 294 """ltllll...; II ~ ~ . rtP" q2 . id.ajj .d.1.~. ~ .a. ~. . . T'.l'Iclclion:020 ItDm:070 J.li~ ,'0 II. 'it _ _::::-f'"~;a."-l..-oo.=c-_JtC-._._.~ .~.O~ ~;O;:~.'0,.I:~___ I !.~__w._., ,__ ~~~~.~~...~:..~'_." n.~. ......' .....,__. ._._..._."'.:.::.7w___.........~~_~9e.~.99~.!q~.':'_., f"- ibTm~---' - _.._~~:,uo~_ J~.r:o~ .-. "1 , C:U\ (lU:l ~aq\J.nc. 11 7 J I 0".......' .IIET^NCOtJRT Control /I : 1074243:JOO TO 1 ..----...-. .....--- [=.=._~--_._.. ~.~] PI.... remit to; CO~ CORP. SALES, INC. P.O. BOX 70212 CHICAGO, ILLINOIS 60673-0: 12 B.N. 866766850 RT Bill To: 361925 Monroe Co~~ty Boec Suit. 211 I e.. Roth 1200 Truman Avenue ~ey We.~ FL 33040 - . Invoice Number Cate P/O Number Sales Order No. Payer Number Account Clerk Sales Rep "0. RICHARD RJ 92244873 11/18/2002 JB111B 1776408 361925 K BARTEI..LO 2773 SPl!:NCER Page 1 I Ship To: 361925 Monroe Coun~y 8oe~ S~ite 211 I Ce. Roth ~ttn: Todd ~rick.on PO'JBll 1802 1200 Truman Avenue ~ey w..t PL 33040 Conditions . Terms of payments 30 Day!, Ship Via: FEOERA.. EXPRESS I Currency LJSD EW22XPE1020 Descriptio' I Qty Price Ex!. Price ,~ ; tA./ I/; . E.;J.;;l A.J2. <35 +- 1- f- '-!-:3 F- 83 - (l 3la B\A. MB:TAFRAME KPl!: LO STR'1' Sts 20 2 4995.00 9990.00~. Material Subtota:L. Tt1 Freight Chg 9,990.00 92.015 Total amount due 10,082.08 ~x.,..., r.L3, r C- - c;( cF'; Exhibit C Comark Invoice and Payment Information for Hawk's Cay Resort U/0-2I2003 O~: OS FAX 3057435215 -,------- -- Hawks ~ ~ )1' Pl.... remit. to: COMARK CORP. SI.LES, INC... P.O. BOX 70212 CHICAGO,ILLINCHS 60673-0Z:.2. -' B.N. 866766850 RT ---- :: !~;'::I~I:ii!t~~~:ii'i,I!:;;;i!}.>\:;.~ Bill Tu: 1467 i) 8 . Hawkll cay Relsort And Marin 1 Jessll Boehm 61 HilWks cay Blvd. Duck Key J'L . 33050 _.---- lnvolc.! Number Date PIO NUlflber Packir.9 List No. Sales Order No. Payer Number Account Clerk Sales Rsp No. RI::HARD RJ 92~41925 10/08/2002 VJII10C 702 81 j' 12 C 41 16lI71.E,7. 14fi 70 fi J nRO~1N 27"3 SPENCER Page l' , Ship To: 146708 Hawks cay Realort And Marir.a Attn: Jesse Bl)ehm PO'VJB100302 61: Hawks Cl!l~. Blvd. . Duck Key rL 33050 Conditions Terms of paymElnt I Ship Via: Currenoy USD 30 Day; UNITED l' !\ReEL SER'TICE I Ground . Material Description Oty Price Ext. Pril:e ---- EW22XPE1J20 METAFRAME X:'E 1.0 STRT SYS 20 1 4993.00 4993.00 Subtotal Sales Tax Ttl Freight Chg 4,993.00 374.48 ;!B.83 10/0212003 Og:09 FAX 3057435215 Hawks Cay [aJ )02 ~~~I -'-~="::=:::::"'..'''.0lJr' L~"""';: T.:C::::Oi-:J . ."IlIUU'IIl'WCllXllIIIl."'..... _.....~..~!!L.__ --.""-, Complnv :COM,'RK INC 'AV ! DATH.1k'JI-. I~. 2lrt2. ...~I Loo~bo. ,OO7C212 J' . :Ut"... CDn1L~ k U'lO' IS t:: ~ql_ III Sill IX Moduli' 1';: ~''IA:d. oJJ.il v,oJ 'P /tCJ) rI t: ~:~ l.' , ~:~~~:". · ~~u~/U4 -J1u..d1t-:flifL'lIif-.OLL"FlB II ~ P'oo... : 11/2&/2002 O'M__" ~. ~ 8atch , : 22 5 lV\J'U~I.. Ii' Tfln..CIIOI1: 044 I.IIm: :>44' "OR .,....Vl'\''r'll 41: Q~1-I.L'!ZfS:_ _. _._..... '::__ ."_ .. heck Amoont: 5,.198.31 I ".CO zo aq.. I:. '--.-.---.-. --. Survev, . .~__.._ ..___....~..............:_____._._,_..._ _.. __.._ ...00005 3'1 Ii i..... Gtll!ili!~iiii::~ -_. - -- .----. .--.--...---.--.......,...."........ SClttIl : 3li Pockel : 02 CUI: 102 SequencI, 184 O"lrllor: TIiMITH Control': 31 14113283C1:J 1 0 I :~ -.~"'W':"'$." 201" Exhibit D Software Requirements O~~~~~E (3]5) 2!W-4841 BOARD OF COUNTY COMMISSIONERS Mayor Charles "Soony'" McCoy. DisIric:t 3 Mayor Pro Tem Dixie M. Spehar, District 1 George Ncugeat, District 2 Bert Jimenez, District 4 Mumy E. Nelson, District S VENDOR VEN# PRODUCT PROD# PURPOSE If an upgrade to Windows 2000 is needed: SHI IWVD 006201 Window Upgrade b23-00308 MS Client Access lie c78-00113 008184 XPe . r"'-- To: Department Purchasers PRICE SHI 006201 MS Office 269-04652 295.62 MS CfientAccess lie c78-OO113 70.61 ~"_nft~~_"1~~~;,_..Ol\tI1.U. From: Cee Roth, T echnica1 Services Date: 8/19/02 Re: Software Requirements These items are necessary for all new computers: Applications FIIeIPrint Sharing Back Office 129.61 70.61 240.00 OperaIIng System FIIeIPrInt Sharing Back Office Lie If you need to purchase Publisher or Frontpage in addition they will be: SHI 006201 Publisher Frontpage 164-01879 392-01459 55.86 74.24 Desktop Pub 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 P.... pril Cine Fleet-~~ Cherry w__..____L.w. ... ._____.._____, /11/2002, DCwlt<W O~i~~ ~_p~.~~s ~~~~~_ 135 '=~~Debbieil ~er=:8 1148 .[.._.~";;,;.... ! Exhibit F IWVD Invoice for Growth Management for Citrix License Purchase Innovative Web & Video Design, LLC 111 Stirrup Key Wood Rd. Apt. 282 Marathon, Florida 33050 Invoice DATE 8/9/02 ESTIMATE # 102 BILL TO Monroe County BOCC 1200 Truman Ave Suite 211 Key West, Florida 33040 CitrIx Base Citrfx Base Uoense Packs - XPe License Packs - XP 4.800.00 'c. . ."_"~'. ~9U~~/ . 9,600.00 'I' '( ~. . Subtotal 0% Tax 9,600.00 Total "rr7-:t~ .0 Exhibit G BellSouth Business Services Master Agreement and 9/23/02 and 11/19/02 Order Summaries " "~I ".,I "'UUIrI\..vn/ II'." ..........."... ..".......... , Hx UaUf.llae ~tr.lu-"UU,"r11I' 11,'U D-20-02; 2:58PM; \ . .... I .., v, ,,,,, ...... , . . v"'..., v.. y I. "'... ; , · 2/ :2 @ BELLSOLffH BellSouth S Business Services Master Agreement This BellSouth. BUllness ServlCIIs Ma.tcr Agreement (this .Contraer) la made and enlorod I"ID 89 or , 200-, by aod between the &If'ldetllgned BallSouth Company (.BeIlSaulh.). Iccaled llt2180 L~ke Bouleverd. 71n Roar, AUanla. Goorgia 30319. Attenllon; John Sluhranber; (the .BenSolJth Cantaer): ii1nd the undersigned company Monroe County ElOCC (hereinal'ler. .Cuslomet") localed at 12QO Tnamln AYenue. Kay West. FL 33010, Atlentlon: Todd Erfcban (the .Customer Cantac:n. TERMS AND CONDmONS The terms and condlllons applicable to 'his Contract shall be those slated within 'hIs Conlracl or Ils Altachmenl(s). SERViCeS AND PRJCE .Sorvlces. 85 used hOl'8ln .hall be 'hose Inlamet or mana god bu:line" services ordorod by Customer rrom BellSoulh under servlco orders (.Orders-) lubmitted by Customer and 8CCBpted by BollSoulh pu~nl Ia thle Conlrac.t. I' thIa Conlritel p~vides for speclRc prldng, Including any eppRcable discounl schedules, for any such Services, such plfdng or dilCOunl8 shall be set forth In tho Altachment(s) to !his Contr.lcL In any e'lent. tho specific prfclng appnc:able 10 any plltlcular Sorvic:ae ahan be IS see forth in the npplcablo.Ordet(s) for such SeNices, which are Intended to be conslstsnt wUh any prfdng or dIscount schedules allached herolo unless agreed between the parties with respect tD 8 particular Oltler. TERMS OF PAYMENT The term. of poyment for the Servlcas arc 89 sel forth In the Terms and CandlUons or in the applicable Omorts). NOTICES AU nolleBs undGr Ihi; Contract will be in writing and will be deemed to have been duly given If delivered pOl1ianallv Dr by courier service. fuod or maRed by registered or r:erUfied mail. ",lum receipt requested, postage prepaid, to the parties at tho addresses sel faith hereIn. All notices under this Conltaet that are addressed as provided herein (a) Ir denvored personaltv or by courier 5etlllce, will be doomed given upon dolivery, (b) If deliverod by facsimile, wil be ~eemed given when confirmed and (e) if dolivered by eer1lfted mall In the manner described abow. win be deemed glvon on the fifth (5 ) bu,iness day aller the day II is deposited In a regular depository or Che Uni\l:!d Stales mall. Either pertv may chango ils address or respective contact for nolificaUon purposes by giving notice to the alher of tho new address or designee and the data upon which such change wIll boccma effective. INCORPORATION BY REFERENCE The Terms and Condillana and all Attachments herelo and thornla, are Inlegfill parIS of this Conllact /ilnd are fully Incorporated heroin by !hIs rererer)C8. ENTIRE AGReeMENT This Contred. and any Orders pteced hereunder, shall consUMe the entire agreement between BellSoulh end the Cuslomer relating to this Contract end !he Servfces performed hereunder Dnd may nat be mDdlfied or emended athor than by 8 written i!:lstrumenl executed bV bolh panJos. IN WITNESS WHEREOF, BoUSouth and Customer have causod Ihi. Contracl to bo executod end delhl.red by thair duly outhorized representaUves, etroclty. upon e.ecution by CU8tomer and ac:cftalance bV BenSouth. Tille: Date: Rev. 412D02 -~ Dale: {;. 1; , of 10 .,.... w., WVV"\P.vn/ , .l A I ... ....---....... ...-........ \ ~ . _.~ I .. ... .... ...., - - -...., ... . @ BEI.LSOUTH BcllSouth e Business Services Master Agreement This BellSouth- Business Se,."leas P&aatar Agroamant (Ihls "Conlract, Is made and enlorud Inlo as or . 200_. by and between Ihe undersIgned BcllSDUlh Compilny rBol/Soulh" loeated at 2180 Lake BoaJevard, -,en Floor. AUanta, Georgia 30319, AUonUon: John Sluhrenberg (lhe "BellSoulh Contact'; and the undorslgnod company Monroe County BOCC (herelnaner. .Cuslomer1 Iceated at 1200 Truman Avonuo~KeY West. FL 33040, AtlenUon: Todd Erickson (Ihe .Customer Contact"). TERMS AND CONDmONS The lems and conditions applicable to this Contract shall be those stated within lhls Contract or its Attachment(s). SERVICES AND PRICE .Services. DS used herein Ghall bo Ihoso Inlomel or'managed business services ordored by Customer from BellSoulh undor &orvlco orders C-Ordel$' submitted by Cu~tomer and acceplcd by BcllSoulh pursuant 10 IhIs Contract Ir Ihls Conlract provides for specific priCing, Including any applicable discount schedules. for any such ServIces, such pricing or discounts shall be set forth In the AUachment(s) 10 this Contract. In any event, !he spec/fic pricing appllcablo 10 any particular Services shan bo as set forth in the appUcablo Ordor(G) for liiuch Services, which are Intended 10 be colisistent with any pricing or discount schedules altached hereto unless agreed between the parties wilh rOGpoct to a particular Order. TERMS OF PAYMENT The terms of payment for the Services are as sel forth In tho Torms and Conditions or in the applicable Order(s). NOTICES All noUccs under lhls Centrad wiD be In wriUng and will be deemed to have been duly given Ir delivered personally or by courier sorvico. raxod or mailed by registered or certified mail, retum receipt requesled, postago propald, 10 the parties at the addresses set rorth herein. All nolleos undor this Contract that are addrosscd as provided hereIn (a) If delivered personally or by courier service. wi. be deemed given upon delivory, (b) If dolivorod by faeslmilo. Will bo deemed given when confirmed and (e) if dellvored by certllied man In the manner described above, will be deemed given on Ihe fifth (51") business day aner the day Ills deposited in D regular depository of the United Slates mall. Either pany may change Its address Dr respective contact for nollOcation purposes by gilling notice to Ihe o!her of tho now address or designee and the dale upon which such c:hange will become effective. INCORPORATION BY REFERENCE The Tenns and Conditions and all Attachments hereto and thereto, Dro Intogral parts orthls Conlract and are fully Incorporated herein by this reference_ ENTIRE AGREEMENT This Contrad, and any Orders placed hereunder, shall consUMe the enUre agreement belween BellSaulh and lho Customer relallng 10 lhis Contract and the Services performcd hcruundor and may not be modified Dr amended other than by a written Instrument executed by both partios. IN WITNESS WHEREOF, Bel/South and Cuslomur have causcd this Contract to bo executed and delivered by their duly authorlzod reprosentatlves, otrecUvo upon oxecutlon by Cuslomer and accoptanco by BellSoulh. Customer. Monroo County BOCC Accepted by B.I/South Bwln... Sy.tem. on behalf or BolISouth T.'.commu/llcatlol\s,lnc. or eel/South MNS, Ine. By: Name: By: Name: (Print or Type) (Prtnl or Typa, Tille: Date: Title: Dale: R811. ./2D02 CUS~IU~ Dale: ,:) < . 1 or 10 UUI IIJ IIUUII \"VIII ! I ., J uuuuwvu... UVWII1UUU \IIIIIJ"UJ JVI 1..,1/, . I U V ./ V j 1/ @ SELLSOUTH BollSouth llIl Business Sorvlces Terms and CondltJonl These lenns and candlllons \Tenns, govern Ihe provision by BellSollth TeleconvnunlcaUons Ine. or BolISoulh MNS, Inc, ("BeIlSouth, .nd Ihe use by Ihe customer ("ClIslame"') or the BollSoulhCl Business Se~1cea lamly or Inlemel-related and managed services, Including but nal Iir1l1ed to .n dedlcatod Inlernet access urvlc:os, web hDstlng, mansged equipment services, managed nolwom servlce:ll, managed lIeCUnly services, and oBull~ess Conler selVlcea, Indudlng any DcUSouth-PrDlIlded equlpmenl and/or sollwam (sam, limes refel11ld 10 ',plrnlely hetelrt as the "Equipment" and the .Softwaro", respedlvely) localed on Custome". pnsmll.. Dr .1 Cuslomor. IoCllllon(s) ror lISe In COMsdlon wllh sud! sorvlces and including .ny nelwork consuWng, daslgn, monitoring. managomont. m.lntenance or other selVas that may be pralllded In cann.dlon with Cuslamer",upplled netwotb or equipment .s Pllrt o( the BellSouth Business t Servlc:os. BellSouth Busllless Servlcell, Induding any EquIpment IInd So,,".. used In conJundlon therewllh, Ire re(lltnld ta collecUvely herein as Itte "SelVlces.. Rsroronces In these Tlnns to .Custamer" Include Individuals .ulhorllDd by Customot ICI use the Services, eltcopl where the contaxt clearly requires othotwlse. By arderlng Ind tiling Ihe Service. or any portion therea(, Customer agrees DS rollows: 1. The Servlcu. The Services l::Onslst 01 various rOll1ls of dial-up andlor dedieeled Intsmel protoCDl rouUng, tennlnal server .e",le.s, Inlemetac:cess, gateway, network consulUng. dOII"n, manNorlng, management, mainlenanco. Web site desIgn, development and/or hasting, managed equlpmont selVices, managed notwork services, managod socurily services, and eSusiness Center services and othor Inlernet or Inlranet-fel.led sarvlcol dllSignated by BlnSou'h from lime to time as Includod In Ils BeRSouth BUltness Services offorlngs. The ServlCllS may Dlso InvolVlllthe LISe of EquIpment Dndlor Software Jocqted at one ar mONl CUslomer lites, and/or tho loeetion 0( canaln Customer equipment In space provldod by SellSoulh. These sDrvlcol and their fealurlls or oporatlon, as well as the .pec/pc types und quanUUes of the Services PUrchased ar oblaln.bl. by Customer, will be descrlbed In (urther detail In Ihe ordering dacumenl(s) used by Cllstomer 10 plac:8 olde" for the Services, Including without .mllaUon any service orders rOrders1 to be subm.led by Customer and acc:opted by BeDSouth and the relaled SelVlce Descriptions Issuod by BellSouth wt\1ct\ .re allac:hed to ar refensneed In such Onfsrs. Addlllona' 'eatures and .ervlcos may be made available as announced by and under terms and conditions Ilstabllshed by BellSouth, including wlhaut RmKaUon lIny chang liS to lhese Tenns made by BellSoulh from Urna 10 lime hereaftor and provided ta Customar In writing. The SelVicea and an features or aspeds (horeof, whether described herein ar In an~ IUd! Iddillonal malarlals, ,hall continue 10 be governed by and provided subject 10 these TotmS unless or ellcept to the extent 'hit. .eparolll agnsement hes been sIgned by Customllr and Sa/lSoulh spedOcally relating to SUCh IddiUonal realures or Services which expressly mske. exc:epUlln to Ihose Terms. 2. Term. Customor's agreemenl for the use or th. Services will be In o"lIclfrom the dale provIded for In CuslomOr'a Order is ac:cepled by BellSouth as prolllded below, and, unless terminated .arfier as set folth horeln, .hllll continue therlllfter for the minimum term (If any) sel fol1l\ In l\It;h Order. 3. RaIDs and Charges. The nlles and charglls payable by Customllr for tho Servltes shal be as sot forth in the CUstomet'. Order(s) which have been ac:ceplod by SellSoulh as provided heroin, and shall be computed In accordance wilh BellSouth's role sdllldules. Rales and d!arges are subJect to Change by Bel/South on thltt~ (3D) days notice. except thai If Cuslomer has Illeded . minimum lerm for the Servlc:es in its Order then tho rates for the Services In elJllct altho limo of Ihe Older shan rllmaln In effecl for the duration af such minimum Illrm (unlet. olherwlse proltlded In such Onfer). If no mInimum term Is specified In such Order, or I( Ihe Services conUnull beyond slIch minimum larm wllhoUI execuUan by both Plrtl9 of an extension to lud1 Order, Ihe Services wlU bo plVvided on I month.to-monlh basis atlhe thlln pRlvaIJJng manUl-IlHTlonlh ratos (or Ihe Sllrvlces untIl either party gives the echor al lelslthirty (30) days wrltte" nollce of IenninaUon o( Itta Services. Cuslomllr win be Invoiced monthly ror us.ge of the Services. Payment must be received by BolISouth by the date stalad on Iho Iovette. Cuslomsr will payor reimburse BellSoulh for any and all sales and IIse taxes, dutlas, or 10 Illes Imposed by any authorlly. government, Dr govemment Igoncy (olher Ihan laxes levied on BelSouth's not Ineame) In cannedlon with Cuslomer's usage of the Sllrvlcos. It any pllymenl due herllundor I~ not mlde by the dale slalod on the Invoice, any 1110 paymenllinterest chargel wid be c:omputed In accordance wllh SI.ndard lelephone company blltJng lltllc:llc:es and procoduNls bSlng those roles applcablo 10 tllrlft'ed loCQ/ service I' Ihe charges for the ServlCIJS .... blUed on Cuslomer's local telephone bill. If such bUllng option is IVIIBable and CUltomer has chosen 10 have the SelVices billed to Customer's aedll card, tha IIIImS or tho Ipplic:able credil caRi agreement willllpply and any lalo p.ymenllinterllst charglll wi. be computad In IQ;Qrdance with Customer's credit card agreement. Otherwl'Il, late ch8rves of onll and onll-helf percent (1 1/2%) par month, or Ih. hlghestllmDunl permillad by applicable IlIw. whichever is leIS, shall be due IInd payable with rospoct 10 such paymllnl A. EqulpmenL If provision oflhe ServlCIII roqul..1 Ih. placement by BellSouth of Equipmenl ot Cuslomllr'1 locallon, Customer shaD pltlvlde (or make Drrongemllnla wilh tho landlord or other appropriate pany to provide' adequale space and a rol.onllble InsIDllation and operallng environment lor such Equlprnonl, InCluding eledrical power, at no chatgo 10 aenSoulh, CUslomer shall provld. eccess to such Equlpmenl by BollSoulh and II.s roprosentatlves for Ihe purpose or nspalrlng. nspt.dng, mallll.ining or athorwiso using or lUlrvlcing Ihe Equipment and (Dr Nltnaving the equipment upon lel1t1lnlllon of Ihe SelViats. All such Equipment sha. remllln the propeny or BellSauth or Its SUppliers, and no right. tills or Intorest In the Equipmenl shall pass to Customer. CUltorner agrees Ihalthe Equipment Is and shall ramal" personal property even though It may become Dllached to realy. Cuslomer shall not and shall notaUempt to slll~ assign, sublot or otherwise encumber or claim or allow a lien upon Dr .gllinstthe Equlpmont by any Idlon of Cuslomer or any pony dalmlng by, Ihrough Dr under Cuslomer. Also, Cuslomar Ihall nOI move /he Equipment from Ita place or In.'aUallon or m.ke or permit any other pal1y to make any replllrs or allerallons 10 any Equlpmont wlthau\ BellSoulh'. prior wrl1en consent C~SlClf11er shull ~-: responsible ror the cosl of repDlring or replacing any Equlpmenlloll. slolen at dlm.ged while al Customer's promlsos, and for relumlng (le., pllnntWng BllIlSoulh 10 rec:over possession of) all Equlpmont In the same candlllon .. when lnshlned at Customer'. pramlllle. lre.sclftlble wear and lear Ilxcepled) upon any lermlnation of the Servlcos for any roason. 5. Customer.supplled Networks and/or EqulpmonL (a) The Services may Includo cortaln consLllllng, network design, moniloring, managllmlnt, malnlenanee or olher similar functions or services rotadng to communications loc:al nelwolk lranspolt facilities, rouq and tennlnat~ng equipment or o~her elemenls ~f CUIl.omll"S nolWOrk ~at may be obtained sepllnllel)' from Ihe Services by CustDlnsr rrom other BlllISouth companIes or producl olfemgs or rrom lhiRi patt.ies (colIOdhloly, Customet's Network"). Customer shall be responsible ror obtainIng all necessary equipment or other portions of CUltomlll's NolWork thll .re nat inc:luded al part of the SIlNlcos. and for a" casts and chargel relaling Iherelo, and for seleding, arranging and paying ror ,II interLATA communicaUons selVlces deemed nocesslty or desirable by Cuslomer for lhe operation Dr Dr connllction with Cuslomer's NsllNork. (b) So long IS CUstDl11er Is not In de'eull hereunder, Customer may request and BOllSollth mlY ~gree la.Gdd additional i~mG of equlpmont ar olho, e~8"sjonl of Cuslomer's Nelwofk 10 any existing Orden; for those SeNteel, Cuslomer may IlVm ll'1le 10 Ime roquelt addillonl' Services rrom BellSoulh in connectlon with Iho actlllltlas dDSCrlbed In an applicable Order. AD changas to the scope of 'he SelVices lo be pllrformed by BellSoulh heraunder mUGI tle ""queGled In wriUng at1d require mutual :Jgreemanl Evaluallon and/or Implomclnl8lion Dr requested change:! may rellull In an 412002 Cuslome~ 1!,~Iip.~ Oale:~ 2 0' 11 .,..,. "" IJUUW,.'VI1/ ... & . I." .. W.,...... " I II II' " V I f1WV" \.....,..'" ,.., IV.., . , V V~' u..." @ SELLSOUTH I C8) . _ Be ISouth Business Sorvlces TONns and Conditions adjuslmant 10 lhe cosls at .ehedule Jor dollll8ry of the Services or other larml of the Ordor, Changlls to the scopo 01 the SeIV'co. will be Ineorporllted Into In Ortfer through wrIlten amendmonL (c) BebSgulh will, I( .et (011h In lhe opplleablo Order, as.lsl CUstomer In Ihe cogrdlnallon af Ihe implemonlation and Insl.llaUon af oquipment or slIrvlcol 'or use wilh Custom,'" Network. BellSoulh Win make reasonabla ."orb 10 ensurv lhal an rel'vlnl vendlllS or sllrvlco providers m"111Ie scheduled dates far InlteD.,lon, bUI BaDSouth shall nel be liable for any dellys. (d) If Cuslomer IOquelts Dnd BellSouth .grees 10 perform equipmonl mainlenanco leNices In 'n .ppli~blo Ortfer ((or oqulpmenl nol provided by BetlSOUlh IS part of tha So!Vlces), BellSoulh shih have the right to Insped and mike such ropllrs 10 such oqulpment al mlY be necessary 10 place It In gooli working ordor Ind .cceplable condllion for induslo/1 In BeDSoulh's equlpmenl malnlenance ce",'ce, and may ch8rve Customl' fgr any such work required II bellSouth's stand::ud rales then In eaaet Customer ag,.es Ig provldo I luilable In=talallClfl envIronment, access Ind power and lelecommunl~Uons connections (or the equlpmenl I( prgblems wilh any equlpmenl covered by malnlenance Serva, hereunder OCCUr during the lerm of the applicable Order and CUslomer repons lhom to BeUSouth In Iccoldanco with BellSouth's slandard procodurel, Bel/SoUlh wjq provide almmllrcially reasonablo mllnlenonce and rapalr service 10 res lore lhe equipmOnl 113 good workIng order (ar, It BellSoulh'. opllon, replace Ihe equipment) within I reasonable lime. Replacement pans or equipmenl may be new or usad/refurtllshed but reasonably can,',lent with tho age and condilion of tho equipment beIng ,e",lced. A1ri equipment or parts thoreof replaced by BellSoulh In tho performanc:o of lis malnlonance service heraunder ,hall become lho propeny of Bel/South. BenSouth may Ilia porform IUch prevenUva malnlenance IS BellSoUlh doeml reaonabl)' nocoosary. If Ihe repair or mainlenance WI' '"e result of nOlm,1 wear Dnd lear or I defed in malarlals or workman'hip only, Ihore will be no additional c:haflJe 10 Cuslomot tgr lhls malntenan~ end repair ,ervlco (oYer Dnd abollO lhe charges far malnlenance .entlce set forth In the applicablo Order). Cuslomor will be charged, at DellSoulh's lhon pre veiling mtes, for Ih. tepDir or replacomenl of any oquipment, InclUdlnlJ parts and labor and any InctOase in service limo required, resulllng (rum .ny other cause, Inc:luding but nOllimiled to mlsus. or neglgont operation of the equipment accident, unauthorized rapalrs or modificlUans, rellure to mainlatn . proper operaUng environment, relocation or aRerallon 0' Ihe equipment by anyono olher than BellSoul11 or BellSouth's deSignated agents, ole.. Unless BellSauth Is providing .pace for Customer's equipment as palt of lhe SeNlees, Cuslomer must provilie a sullable operating environment for lhe equIpment and prDvlde BenSouth or Be.Sauth's conlradalS wllh appraprlato access 10 pelform such malntenanco lervices. All reporta gl problems and requests for equlpmenl malntananca musl be reponad to BenSouth at .uch lelephone numb.r or e- mal/ address as BollSouth mDY nollfy Cuslomer In wrlllrig. Customer agrees not 10 move any equipment covered by maintenance SGrvlce. hereunder 'rom lis place of Installalion wilhout BellSoulh's prior wrihon conSenL (e) BellSouth shall P/'Qvide lis Services In accordGnce with Che lame lirsl day stanlialds appled by BellSauth 10 It$ Ilmllar projec1S for lIs aMnateli companleslllld other clienls, in a good 'Ifth erton 10 support Cuslomer In daveloplng, implemenllng andlor managing Cuslomer's Nel'Mlr!\ or Its olher I"landed syslem(s). nelwork doslgns or other projects or services as dllsc:rlbed in lIpplicablo Olders ("Cu~lomora Project-I. Howo\l8r. as the sua::essful ImplemenlaUon or operal/on of Customer's NOlwork or Projea ulllmalely depends Ullon many faClors beyond the ~nlrol or BellSouth (Including the e\forts and porformance of Customer and olher vendors saleded by Cuslomor). BellSoulh does not warranllhe almplelion or SUtx:8U of sudt Projed nor, excepl al provided In tho procediog sentence, mako any olhor warranty a, 10 the Services. BeDSouth shall hllve no liability or obligaUon 10 Cuslomer for Dny de(ed or faIlure of such Network or Project, boyond Ihe Services downUme credits (if any) sel forth In these TelmS or In tho applicable serviCe descrlpUona gr Olders. 6. SoffWllre anc2 Gatewav S,,,,'cn_ (a) The Service, may Includo dedic, led at dial-up Inlornet Protocol alnnllcUvlly 10 BenSouth's loeallnlemet nelWllrks and (through applicable GSP service as descrlbed alroewhere herein) to the global Inlemet, as well as aceuss or connedivlty 10 any of Ihe Informallon lOUrces or se'Ylcero which may be provided by BellSouth or be availablo from olher service provldors plrtlclpaling In, connocted to or accassltlle lhrough BellSouth'a Service, or lhe globallnlemel. Some of lhese addlllonal services may ba provldad wllhout charge to usors of BellSoulh's Sorvlces, but separale charges may be applicable 10 some of these ochor IGNices. These charges may appear on your bill 'rom BellSoulh, Dr they mey be billed to you sep.ralely by the pruviders of such servlCOI. Some olher providers may a"g hive addiUonal roglslrallon or elgibility requlremenls in order 10 use Ihelr services. (b) Use by Cuslomer and Iny Individual aUlhorlzed use,. 01 Cuslomar of BGIISauth's Inlemel Services and Iny assoclalad browser or olher Software provided by BellSoulh In connedlon therewith shall bo 'Ilbjecllo BelSoulh's slendard lerms and mndlllons for such Inlemal lotvlco IS well as Ihe DPplicable SOftwlnt license terms which are provldad with audl Software, 7. ThIngs NOllncluded In \hI SarvlcllS. Tho Services may includD Iransport compDnents whIch are Incorporated by BallSoulh Ind sold 10 Cuslomer os pan of the Servlcos, as will be reneded on Customor's Order(s) (or lhe Servlcas. However, Customor m,v Inslead or in addillon purdla,o similar componDn" a, larlled transport seNlcas (rom BellSoulh's (or lis amllltes') regulaled lelephona opel1lUons, In which avonl any regulaled transport nelwo", services purdlased bV Customer to conned fa fhe SONlces shan be provided pursulnl to applicable larl<<s and are nol part of lhe Services nor subled to Ihes. Terms. In addition, bocau.. of currenl legal restrictions, Be.South's Servlc:as Includel direct connectivity only fo addresses, In'ormallon sources or .e!Vlce providors wilhin speciliecl calling area, known as LATAs. In ordor 10 connect to Inlernet-basad slrvlces or olher parties, netwol1cs or sitos located outside of lhe local uPtTA (Incll/dlng the world-wide Intemet) thruugh BellSouth's Servleas, CUllomer Will need 10 obtain interlATA ..",Ice (indudlng globallntemol sa",lce INhe", desired) from a Global Sorvlco Provider rGSP") at olhor party of Customer's choice who Is conneded 10 BellSoulh's Servlcos. Infarmallon about which GSPs are connected 10 Ihe Servas from limo 10 lime may be oblained on-lIne on lI'to Service, or by conladlng BellSoulh. Cuslomer ill responsible for seladlng SUCh. provider Dnd for paying,,, appliCllble dtarges (or such IntllrlATA ,ervlce, :as wen as aU enalg8. for any purchases made lhruugh tho Service, Dnd any charges Incurred while usIng any supplamenlal netwolka or services other than lhe Services, BellSoulh will faciftlate Ihe process of regiltering Cuslomer's ICQ)unl wil.h lhe GSP at other a".llablo provider of Cuslomors d\Olc:e, and BellSouth may Indude Ihat prolllde", charges on Cuslomer'a bUI from B.IISguth. Any computer IY'Stem, d8lebesll aa:esl. Inlernel coMedion or o!her servlCltS whlc:l1 may be provided or made available 10 Cuslomer by ils GSP or any olhar Pluty are Ihe sole responsibUily of IInd at Ihe sDle disCfIlllon of such plrty, and life not Indudad In or a pllt gt BellSouth', Servlcos_ BallSoulh makes no seledlon, endorsomont or recommendaUon with respecI to any GSP or olher InterlATA long distance service provider, globellnlemet access provider or olhor aspOd or any service provided by !he GSP or oCher party, and BellSoulh ,holl have no rosponslblllty, obligalign or liability of any nalure with respecllherelo. The reliability, availabilily and performance 0' resources accessed lhrough lhe Inlemet or olher :lllrvlcas connected 10 BenSouth's Sorvas are be~ond BellSoulh's conlrol and are nol In any way warranlod or supporteli by BeUSoulh. Cuslomer acknowledges Ihal saroguards rel.lIve 10 copyrighl, awnel3hip. decency. reliability and InlegrllY of conlenl may be enUrely lacking wllh respect to Ihe Inlemel or othor sa""ees or conlent accessible through BelfSouth's Services. Customar may allo elect to obtain nelwortr design, Web site developmant or promollon, or oaher lJlSlVices from panlclpan15 In ~~ a' CUSlo~er. 'Uat,J J/ (. Dale: "_'~ II!' , 3 of 11 111.11 IIJ IIUULI\JIVI1J 11 ,'I J U~~~UVVIU UVUI"~UU \IIIII/JVJ JVJ /JJJ I,UUUfUJJ @ BELLSOUTH 4D BellSouth Busrness Servrces Tenns and CondilJons BollSollth's various Markollng Programs or 'rum othor third plrOes. Customer ac:kno\\lledges that allluch addltlonll or relaled servtces .,. boin pIVvided by third parties and nol by 8.11501l1h, and are nol part or B.1150ulh'l S."'I~1 hereunder, WIllie Cllstamer mey IlIke advantage or an~ applicable remedy mechanisms thlt may be av.,ltible under BonSauth'. Markollng PlVgrams to ...Ist Cuslomer In dealtng with panlclpadng vendors ror such larvlces, Cuslomer aseumes I. risk and liability or Hs uso of the Inlernet or other services or alnlenl accessible through BeltSoutl\'e Servtces or used by Cuslomerln connecllon lhelaWith,lndUdlng Cuslomor's conUnuoul taI1Ipllancewilh Ih... Tenn.. I. Cuetom.". RalponclblllUe.. ea) As belwoen Cuslamer and BellSoulh, CUltomer II responsible for: (i) assuring Ihat lis aulflorlzed users comply with Ihe Prvvlsioos or Ihesa Tonne and that unaulhotlZDd persons do nol gain aCl::CSS to or Wlelhe Services Ihrougt! user names, passwords, or other Identlla,. assigned 10 ClIstomer pursuant let lfIae. Terms; (il) providing any equIpment Ind .ollwllre which may be necessary for &he UIO of Ihe 5e",lces by CUslomer (ill addillon 10 any Equipment and 50llwaro Which may be placod II Customer'1 Iocelion(s) or othaN/ise provided or Used by BellSoulh for Its provision or the Services); (Iii) Umely payment Df In dtllrges for ulago of the Servtcel applicable to lis account whether ar not byaulhorfzed users or for authOrized PUrpOI..; (Iv) providing sp.c:. and related Bettllllle. with resped to any EqUipment located al Customer sites DS descrltled below; and (vJ ,e/forming Its olher obllgallons under these Terms. Customer shall nol UIO Ihe Services In IIIV way which would be or would ...lsIDny Ihlrd erlrty 10 be In violation Dr Dny law, Ihose Tenns or any Acceptable Use Policy applicable 10 the Services. CUslornor shin nolllan.mit or pubOsh on or over the So",lces any Inronnetlon, softwara or olher alnlent which IIlolales or Inrrtng.,1 upon lhe righll or In)l olhers or use the racUitiel and capabilllles of the Services 10 cunduct IIny buslnace or activity or sotlelt the perlormllnee of any Ictivity which Is prohibited by law. Customer shall comply wllh all applicable laws rulos and regu/allan. In conned/on with tho Sell/ices. . (bJ Cuslamer shell pIVvide, at no cu.. 10 BellSoulh, such access, space, faellllln, and olher lorvlces al CUSlom.r's location as am relSonably requesled by Bel/South for purposes of faell/CllIng BellSoulh's prov/slon or SOrvlallto Cllslomer. (e) I( Customer II oblainlng Web Sile or Appl/caUon HosUng or relaled Services hereunder, CUllomer shan PlDlllde aI/ relevant CUllomer- Ipeclfie or other graphics, lellt and olher Informallon or olher contonl desired by Cuslomer to be InCOrpOfllled Into Customer's Web 5110 or hosted application In a timely manner, and IUch alher relaled Imormellon or documontatlon IS Is raasonably lequesled by BellSoulh for PUlpoe., Dr raclBIaDng BoRSOWh', ptavlslon of Sorvlcoe ta Customer. (d) DailY or rallure by Customer let rumn its responllbllilles may rasull In In odjusllnent la the costs or Ihe schodule for deliwry 0( Ihe Services, and shall release BolISoulh h1lm its obllgatlons hereunder '0 Iho .!tenllhal BellSOUlh Is adversely affeded by such CUslomer delay or failure. 9. SellSouth'S1 RosponslblllUeSl. BellSoulh aglOes 10 the roUowing responsibiliUes (subJoClto Ihe limiCllloII' sel rorth In 'hese Terms): (a) BdSouth win operate Ihe So",lees In accordance wllh Its slandard palleles and proceduros and will use commen:fally raalonable elforts 10 maklllho Services available to Cuslomer as described II'Ilhese Tenn~. BoIlSoulh will give CUllomer reasonabla nollce of schedulod downtimes for malntonance. (b) Be11So1l1h wiR noUfy CU.lomer ar any changos In th. In lhe reatures or Ihe Services or In BellSoulh's policies In the operaUon 0' Ihe Serviees Iha. are reasonably axpeded to malerially a(fed CUslomer's use Ihoraof. (e) BenSa"'h will use a reasonablD degreo of care 10 malnlaln Ihe secrecy or any or Cuslomer's passwards which aro In lis possession, but BenSouth Ihall not be liable for any UfMlulhorized access 10 or Use of the Services or ClIstomer's Notwork by third partlos. (d) Upon nounCGllon rrom CUltomor of any interruption or maltundlon in the Se",lce. or a need for roconrrguraUon of CUllomer'. Services, BellSauth wi" use rellsonable erfoltl to Cluse Ihe samet to be ropalred Dr reconflgurad. BonSouth shall have 1fI. Iighllo accllu Cuslomef' Services for lho pUrpose of perfonnlng IUch repairs or reconflguratlon or confirming Customer', compHance with Ita obllgltlons with res POd \0 the Services. 1D. L1mltaUon orWamanlJol and Liability; Dlscllllmor of Warrantle.. CUSTOMER EXPRESSLY AGREES THAT USE OF THE SERVICE IS AT CUSTOMER'S SOLE RISK. NEITHER BELLSOUTH NOR ANY OF ITS UNDERLYING SERVICE PRO'llDERS, INFORMAnON PROVIDERS, UCENSORS, EMPLOYEES, OR AGENTS WARRANT THAT THE SERVICE WILL ae UNINTERRUPTED OR ERROR FREei NOR DOES BELLSOUTH OR ANY OF ITS UNDERLYING SERI/ICE PROVIDERS, INFORMAll0N PROVIDERS, UCENSORS, EMPLOYEES, OR AGENTS MAKE ANY WARRANTY AS TO THE RESULTS TO BE OBTAtNED FROM USE OF THE SERVICE. THE sERvrce IS PROVIDED ON AN "AS rs., liAS AVAILABLE" BASIS WITHOUT WARRANllES OF ANY KIND, EITHER EXPRESS OR 'I/tPUED, rNCLUDING BUT NOT LIMITED TO WARRANllES OF Tln.E OR IMPLIED WARRANllES OF MERCHANTABILITY OR FITNESS FOR A PARllCULAR PURPOSE OR OTHERWISE. OTHER THAN THOSE WARRANllES (IF ANY) WHICH ARE IMPUED BY AND INCAPABL.E OF EXCLUSION, RESTRlenDN, OR MODIFICATION UNDER THE LAWS APPLICABLE TO THIS SERVICE AGREEMENT, ALL SUCH WARRANTIES BEING EXPRESSLY DISCLAIMED. NEITHER BEUSOUTH NOR ANY OF ITS UNDERLYING SERVICE PROVIDERS, INFORMATION PROVIDERS, UCENSORS, 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, REGAROLESS 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 PARlles IN CONNEcnON WITH THE SERVICE ,'NCLUDrNG THOSE WITH WHOM BEllSOUTH MAY CONTRACT TO OPERATE VARIOUS AREAS ON THE SERVICE). 11. Remedies or CUSllomer. Cuslomer's sale remedy for any filllu,. or non.porfonnanCII or the Services (Ineludlng any aSl~llled Equipment, Software or olhel malarlall supplied In connection with Ihll Sorvlces) ah,lI be (I) for BellSoulh to use commercially reasonllble e(forb to elfeduale an adJuslment or repair of the Services Dnd, in Ihe tMInt such failure or no~erformanCll rosulls In Service dOwntime which exceeds Ihe period or lime speellled In Ihe Ippl/ClIble service level agreoment portion (if Iny) or any appllc:abla Oldet or Service DesalpUon. to racelve a refund or Cledll of or .gainst .ny churves olherwlse payablo for ll\e Services 'or the pelfod of leNlce downtime us provided for In lho appliceble _rvice level agreomenl pol1lon (ir any) of any applcablo Oll1or or Service Description, or (II) If SlIch failure or nonl'erfonnanCII results In Service downtime or 412002 ".,.,...-,L""L CU510merl~II~~ Dale: 'i ~ "-J.. . of 11 ..... lJoI IJUUIJ ,,,vIII I. & I . I II' u..... III' V V . II II" lit . .,... iii II \.....,,,v,# 'VI '"VI . . VV " U j,,, @) SELLSOUTH cD BeflSouth business Services l"onns and Conditions dellradaUon aD subalanlial a. 10 randar Iho SelYic:e es5anUaUy unava/Igble 10 or lInus;able by Customer ror nonnll use, 10 I.rmlnllte \he SeMen ror derault by B.nSou!h In the mannor provided In these T.nn.. Unless spodtied 10 Ihe contrary In IIny IIppllcable service Itvllegreernenl parlian or IIny IppliCllble Onter or Sarvlce DescrfpUon, !he marlmum credit for sOlVlce downlime or olher ru/lure shall not eJCceed Ihe tolll monthly bill 10 \he CUI lamer rar the SeMCOS for \he manUt in which sucJ1 dClWl'lllme or falur. O=Un. 12. Disclaimer of Ulblllty. BellSouth shall nol be responslbla for the use mlldo or Ihe Services by Cuslomer Ita 11IltJoriad users or Iny other cuslomer or lhl1d party. Wllhoulllmltlng Ihe generality or the fotogolng, BeDSoulh lhal nol be nable to Cuslomer or'lny or CuslDmer's u~en for any 10.1 prolils or other consequenllal damages. even If BellSoulh has been advlled of lhe possibillly or .uch damageG; any c1elm or oIhor acllon agalnsl Cuslomer by any Ihlnt palty (eltcepl as let rarlh In Ihe .oetlon below on Infrlngomenl)i any ad or omission or IIny olher enllty fumlalllng produds and services which .ra used by Cuslomer In conne~lon wllh lhe Servlc:aa ar lot failure or any products or services pRlllldad by Customer; or any damages or 10sU' CIIused by Ihe rault or nogfigonce IIr Cuslomer or CUSlornor'. falure 10 perform CUslomer's respanslbllllln. 13. Umlratlon or Uablllty. In lhe euentthal . c::ourt should hold Ihlllhe IimltaUons of liabilities or remodles Ival;ble a& '111ot1h In lhese TeRnS, or any portions /hereor. aro unenforceable for any raason, or Ihal any or CU:llam,,., remedies undor Ihese Tenns fall 01 their ellenUal purpale. Customer ellprossly .grees thet under no circumstances shDII BeDSoulh', tollll labRlly lo Cuslamor IlIr any party clalmlng by. lhrough or under Customer for any caule whaboever, and regardless of Ihe 'ann of ocl/on, whalhor In contract or In lort. Including negligence, In \lie aggregale, ellceed the amounl or charges paid by Customer far use of \he Services during Iho twelve-monlh period preceding Ihe dllte IUch claim nrst arose, 14. IndomnlRCIlUan. (a) Ir promplly natined In wrIl1ng of any action broughl against CUslomer based on a claim Ihllt the Servleas Infringe a United Slales palenl. copyright. trlldllmarlc. or olher Inlellectual pmperty righi, BellSouth will derend IlKIl adlon at Its expense lIt1d will pay any and al reea, costs Or damages thaI may be linally awarded In lhat aealo" Indlor a settlemenl RI&ulllng from it (provided IIIlt Customer shan pannil BeDSouUl ID conlrollhll derense of such action and shan not make .ny compnlrillse, admission of _ability or seWement or Illke any oUler action impairing Ihe derense or.uch clam wlthoUl BolISoulh'1 prior written apPRllIal). if a final Injunction Is obl.lned ag;ln'l CUllamer pnlhibiting usage 0' the Services by reeson of infringement or . United Slales palen!, copyrighl. lrademark, Of' olh.r Inlelledual property rlglll, BellSoUlh will, at Its opUon. either. (1) allts ellpense procure the righl ror CUltomor 10 conlinue using !he ServIces or (2) cfnd Customer 10 cease using lhe Se",lees. In the hiller evenl, the Services shll.tannln'le mmedlately. (b) CUllomar wllllndemnil'y and save ham",,, BenSoulh I'ram and .golnsl ell loss, liability, dam.ge, and ellpenae. IncludIng 1111 reasaftable counsel foes, due 10 clelms for Infrtngemenc of palenls, copyrlghl, Ir.Idomark, or olher Inlalllldual pl'Oper1y rights. or due 10 IIny aUler clalme ar callSes of :Jdlon by third plllties of ony nalure whatsoever. arising from /he use In conneclion w11h lho Services or equipment, software or Information no\ provided by BellSoulh, or allle"",,lo teloling 10 or arising oul of CUSilclmer'. use or Ihll Sorvlces. 1 S. Fore. MaJoul"D. BallSOUlh shIH nal be responsible fo, Iny dlllay or failure In doUvery or perfonnanco of any of lis dulIes horeunder due to acts or Gad, acts or omissions of any rogulated lelephone nelwork or any olher occurrence commonly known liS forca m'leure. Including war. rtoll, embargoes, strikes. or other conca"od acts or workers (whether af BollSouth or other.t), casualtl.. or .cc1dents, or atty oll1er causes or c1ramllances whelher of 0 similar or dissimilar nllure 10 Ihe foragolng, which prevent or hlndor the delivery of !he Se",Ico.. BellSoulh may eaneal or de"y perfonnance hereunder for so long as such parformance Is delayed by such occurrence or occurrences, and In such event BellSouth shan have no liability to Cuslomer. 16. Tonnlnatlan and DefalllL (a) BellSaulh may. at lis sale dl$crellon. Ielminate any Cuslamor Order 'nd dlsconlinue Customer'. access 10 and UIO of Ihe Servk:es, if: (II Customer fails to pay any amount within 10 days aRer wrlUon nollc:e Ihat the same Is deHnquenl; or (il) Cuslomar b...lches any of the lenn.. condlOons. obl/glllons, or represenlalions contalnod In Ihese Tann.; or (Iii) eUllomar becomes /he subled of a volunlary or involuntary bankruptcy, Insolvency, reorganization, or liquidation proceeding, makes an assignment for the benellt of aedilors, or admits In wtlUng Its InabUl1y 10 pay dobts when due, or (Iv) Cuatomer's equlpmenl or use of Ihe Servtces Inlorfores wfth Ihe SeMces or any athor IISer. In Ihe evenl of a defeull by Cvslomer lIS spedflod In Ihls section, BellSouUlshaU also ba authorized 10 tetaln an payments mado horounder and 10 recover IIIe full unpaid balance orthe charges applicable 10 lho remalndor of the than CUrTeRt minim"", tenn of Cuslomer's Ord.r tor the Services, In addlllon. If BanSoulh re:asonably detelmlnes thlll the cunllnulllIon of /he Services has becomo Impf"Iclical or unreaslble rar any lechnlcal, legal, regulatory or olher tolSon, BenSoulh may lelmNte the Services al any tlmo. BeDSoulh will, In such even!, pnlvide Customer with .1100sllhlrty (3D) days prior nollce 0' sueh termlnalion IF reasonably practical. (b) If Cuslamor has oloeted I minim 11m Ierm for the Services and then cancel. lis Services or IIny portion Ihereof (or has its Services or IIny portion therear tonnlnated for dlllaull as provided above) prlor 10 the expIration of luch minimum lenn, Customer Ihall b. obllgaled 10 pay BellSoulh II tomllnalion charge equal 10 Ihe amount (If any) IpecllJed In tn. applicable OnIer; olherwise the termlnallon Charge ,hall be equal 10 100% of the lolal monlhly charges (other lhan varlablo L1sage Che'Ues) which would have become duo far the remainder of lhe scheduled minimum IDrm If IUch cancellaUon had not occurred. Such lelmlnaUon charge shIll be pllid 10 BellSouth wilhln Ihlrty (30) days after such cancellallon by Cuslomer. (c) If BellSouth bl1tachas any or thOle Tenn, and fa" 10 cure such breach wllllln thirty (30) days aner writlen noUce of such breuch, Cuslomer may (as lis lole remody e.eept for .ny aedlls Ihll may be payable ror downllme as pre"lded el,_here herein) lerminale ils Services by written notlc:e 10 BeIISOll/h. withoul oblig:JUon ror any early tenninalion charges othetwlse plyable hereunder. 412002 c......" '"~ Dale: "1:J,( 5 of 1 1 IIUI 1.101 I.IUUI.I ,,,vnl 1 1 I -. -. UULlUWVUIII UV"IIIUUU ""/1/.JVI IVI '01011 I'UUU/UJJ @ 8ELLSOUTH . BoJlSouth Business Services TeRnS and Conditions 17. Us. 0' Matertals, MllrIes and 1"'onn.lIon. (a) CUltomllll' ma)' use, capy .nd dillrlbute 'he malaria Is found on tha SeN/c8. for Inlemal, noncommerda~ Informalional purposes only e.cept al Bulhortzed In this paragraph, Customer Is nol baing ,hinted II Ilcenle Under In)' capyrlghl, IrademQlt, palent gr other Intellectull prapertY right In tho matarlal Dr lhe Pn:lcNcts, services, PloCO"" or ledvtology descrIbed Iherein. A1lludl rtghts lire rel2llled by BellSoutfl, Its llIili8tea and/Dr any IhIId plln~ OWner of IUch rights. Custmner shill hive no ownarshlp or prapelty righla In 'h. Services Dr In an)' documentation pravlded In cannactlon wllh 1110 Sel"licu. CUllomer may mako coplel gf IUch documamlatfon aolely for u.. In Clmnedlon with lis al1lhorlzed us. of Ih. Services and a" IUch cuple. ahalllnclude 1111 copyrfght. IrademClrk IInd other pmplletllly noUces IIppearln, In lhe original document;aUon. Upon lh. !erminal/on or Ihe Services to Customer, Customer shan retum al coplas of the documenlallon to BoIISoUlh or certift dOGtNctlan of IUch documentlllon. (b) The BellSouth company names and logos Ind III relDled product and lervlce namell, design marks and Iloglns lire Ihe propllrty of BellSoUlh or Its amlllles. Cuslamer Is nol authorized 10 and shan nol uso Iny Sensouth namo or mark In any advertiSing, pubncity or In Iny other camm8tda' manner wilhoUllhe prior willian COnsent of BellSouth. (c) Any fll8dbllck, data, answers. qUlllldonl, comments, suggestioM, Ide., or Ihe like which CUltomer lends 10 B.,lSouth relaUng 10 the Services and which halllJ nol been Identified liS canRdentlal wm be treated as being nonconrldentlalllnd nonproprielary. BolISDUth assumes no obligallon 10 protect such Informllian from dlsc:loluro and IoVIII be free to reproduca, use, Ind distribute the Informal/on to othor& Wllhout resllldion. BellSoUlh wII al.o b. free 10 use any ideas, c:ancopts, know-how or lechnlquel conla/ned In such Information for any purposo Vfhatsoever including bUI nol Imlled to developing, manufacturing and marketing producas and se",lc.s IncorporaUng IUch Infcmt1lltion. BellSouth m.y .Iso use CU'Iom.". slllu. as a subscriber to tho Servlcel for the purpose of marketing to Cuslomer other BellSoulh praduCls and le",lces. (d) An product and selVa mlrks contained an or aMocilled with Ibe Sel'ilc:al Ih.I are nol BellSollth mllrks aA!l the lredemlrtls at their respoctive owners. References 10 an)' names, mark" produds or services of third parties or hypal10lt links 10 third pany liles or Inrormalion do not nocos..riIy constituta or Imply BellSOUlh'1 endorsement, sponsorship or realmmendallon of the third party, Information, prodUCl or setvlal. f B. SIIMC_ Lavel AUt1lement for Cartaln Dodlcated Intamat Accoss Cuetamers. The follOwing Service LavolAgreement rSLA") Is made by BellSOll1h a~d UUNETTachnalogl.., Inc. rGSP1, each wtlh reg:ud to" respactlve '.Mea, to CUSlamef$ who hive ordered an)' of the fallowIng SellSoulh.net Dedlc:atad InlOrnet Accas SONICIIIS ftOm SellSouth, and 'he relaled Cloblll Service Provider (GSP) seMce fram UUNET, on er after lhe Elfedive Dale set forth above, for II minimum lervlQil term of one year lIl' gluier: A'ynr:hronoua Tl'3n.'.r Mode (.Am" Fl'3me Relay (ueludlng cuslomers with zero committed intormaclon rale) , Prfvat. Una, Ot Ft1Im. ReiI)' NxTf service (coflecUvely, BeIlSoulh'. services Ind the GSP's services aro refened to herein as Ihe "SeNlee."), Sarvlca LlI1I8/s 1. General. DellSouth and lho GSP Intend 10 provid!llhelr rospoetive services such lhal tho COmblnalian of the Services will pelf aim In II manner consistent with the objeclives set fonh In lhls document Ir ellher BelSouth or the GSP f81110 pelfonn their respeCllve services such thalony ef the tallowlng SLAs are not mal, Ihe solo obllgalion Df Bel/South IInd the GSP and Ihe Customer'. sol. remedies eha" be for BellSouth and !hll GSP 10 use commercially reasonable orofts 10 etfeclvale 0 repair or Ihe Servlcos Ind for BellSaulh or the GSP (whlehever WlIS responsible for such SLA being missed) 10 provide Iha creditl, if IIn)', specified below. As bRing Igenl for Ihe GSP, BellSoulh will .dmlnlster any c:redlls due for an)' such miSled StAs, such that the Cuslomer will A!Ic:alvalhe fLlII credit duo (if any) whether il was BellSouth or Ihe asp which was responsible for such SlJIl being milsed. 2. Nelwom Avallabllllv. (a) "NelWork Avellabllity" is the percentage or lolal mlnulas during a calendar month thallhe Sorvlces '1'0 aVlllable to the Cuslomor. Network Avellablllty II c.IC\llaled as follows: Nelwork AvaUablllty - rCMinulellln a fJKInthl . ITolal Dulaae mlnulesll (MlnulDS In a mOlllh) The Services sh.n be deemed to be "unavailablo" wh!lnovur an aUlage 'S recurded an a BelSouth lruuble lIckat d.sallied IS "mujor" or 'criticar b)' BellSouth's Network Operations Cenler which rosults In CUSlomer not hiving the ability 10 transmll or recalva pickets by meens of Ibe Services, and Wfotal Outaga Mlnutos- shill be deemed 10 be lhe Ienglh of Ume during whIch the ServJco. Ire unavlnlble to Ihe Customer, as renected an such traublo tickets. latal outaga minutes" shall MOllnelud. any oUlagOl (I) occurring during scheduled maintenance actlvll"; (I~ IUrlbutllble 10 any ad or llf11issian of Cualomer, (III) attrlbutablo 10 CUSlomer's appllcllUons, equipment or fadlllles; (Iv) resuklng from muons of Force Majeure or other ~uses beyond the re.sonabl. cunlrol of BelSouth or the GSP; or (Iv) lasling len mlnules ar lesl. (b) The ob/octlve fot NellNOrk Allaneblllly is 100%. For any monlh In which lhe objec:d1llJ Is not mal, CUllomer win receive I C1edll. ~hlch me)' be applied IDWllrds Customer's subsequent monthly involce(s), aquallo fl30lh or the monthly recurring Chlrg.s 'or IIle ./fecled Servlcel (i.e., the ponion(s) or'he Servlca. directly made unavailable as a result of the outagels) In que-sllon) for each cumulallve hour or portion !hereof during whlc:fl such ServlQils am unallallable to lho Customor (aubjeC:llo IhellmillUons set 'orth herein). Unavailability and credits will be praraled and paid In 15 minute Incremenls. 3, Mean Tlmlllo ReDlllr. "Mean Tlmlt to Repair" Is tho monthly .wrago lime aver any calendlr monlh it lakes for BellSouth and the GSP to resolve any oUlage ptOblam dasslnad liS "maJo" ar "crlllar by SenSoulh's Nelworft Operalions Cenler. Mean Time to Repair Is c:alaalaled as follows: . Mean Tme to Repair . Total out8ge occurrences Tho obJeCllve for Mean Tme 10 Repair j, not 10 exceed four (4' hours. This objedive will be measand and reported bUllho CUllomer will nof receive a cradit.. the abJective is nol meL ~a002 ~~ Cuslomer lJ'!I!~li ,.- Date; ~!JLlI.c~ 6 of 11 Tola' aulaae mlnutlll ... -. IIiIY "VV. \0.. .'/ \ . .. -. I . -.. .. - .. ....... . . ...., I ..... '" @ BELLSOUTH QII BellSouth BuslnOlSS Servlco& Term. and CondItions 4. In,llIllnllon 0110. (I) 1nslallallan Olio-Is lhe actual dale Ihatlh. SlHVlcesa", mode available to the Customer, The Inll.llll1on Dale shaD not be deemed mluod due to Instalallan delays IIUrtbUlabl. to (I) realons of Fon:e Malelft or other CIIuses beyond the reason.b/e conlrDl of BenSaulh Dr the GSP; or (II) Customer's appllallans, equipment or foclliUes. All ell'Pediled Inslall.l/on "'queSb do nOl Qualify for this InClIlllalion SlA, (bJ The objective for the Il'\8tallollon Dale It to be an or bo(ote the target dlle commIIled 10 by BellSOUlh, as reRected Dn BoI/Sauth'. service managemenl recan1s. For .ny InstallaUon (or IAIhlct1the oblaC&h,. Is nol met (ather than for the reasons let forth above) Cuslomerwll receive II crodlt, IAIhlch may be applied towards CUltomor', subsequent monthly Involce(I), equal 10 100% or the InstaNallon charges (Ir any) otherwlle paY"ble by Ihe Cuslomer (or the Services. 5. ~. (a) 'Average Latency' Is Ihe monthly average round-trip latency o( deslgnaled portions of lhe GSP's network collnec:ling the primary BollSoulh Managed Facllllle, (lier-1 BMFs) 10 each other or to the esp's IP network. delermlnod by measuring lOund-tJlp nolwa~ responses over,uch portions or the network as delenn/ned by BellSollth and the GSP, The obJedlvo for Average Latency I. 10 nol be greater than 55 milliseconds, For Dny monlh In which the obJactive Is not mot, Customer wOI rocelve I credit, which mlY be appliad towartls Customer'1 mOlllhly Involca, equal 10 10% of tha monthly recurring charve. for tho Services. Network delay wlU not be consideled for purposes of AvoFage Lllency, and Sorvice credits wlll not be avalabla to Customer, In cases whe", the Services are delayed as a fe$ult or (I) the negligence, adlI or omlnlons of CUllomer, Its employee., conlradotll or .gents or Ita end users: (II) Ihe failure or malrundlan or lesUng equipment, Ipplic8tions or systoms; (iil) clraJmltancn ar causes bo~olld the control 0' Ihe GSP, Including Inslanca of Fonz MaleUl'O (I. defined al InclUding war, rials, embarvoes, slrlkes,.or olher concened Icts of wa~ers (whelll.r GSP or others), casualllos or 'cc1denb. mallcfous or ermlnal adS of third parties, or an~ olher causas or dn:umslancallllhether of II similar or dlsslmHlIr nature 10 Ihe roregolng, which prevenl or hinder the deDv.ry of Ihe Services): or (Iv) scheduled servIce malntenanca, aUel1lllon, or Implll11entaUon. Such credlls will be granled only If Customer affon1s BellSouth full and trae aeees. to Cuslomer's eqUIpment 10 perform necessary telling, lroubleshoollng or related adlvltles. e. Packet Los~. (8) "Average Packet Loss. Is the monthly average round-trIp pocket Iou at detignaled ponlon. of the GSP'. network connecting the primary eellSouth Managod FlcllRies (Tier.1 BMFC) to each olher or to the GSP's IP nOllNolt. delermined by measuring round-trip network re:;ponse. over .uch ponlons of Ihe netwo~ as detOtmlned by BellSouth and the GSP. The obJedlve for Aver.age Packet Loss Is 10 nol be graaler Ihan 0.5%. For any monlh In which the objective Is nol mel, Cuslomer will receive a crodll, which may be Dpplied loward, Cuslomer'. monlhly Invoice, equal to 1130lh or the monlllly raculTing charges (ar the Services. Packet loss will not be consldared for purposes of Average Packet Loas, and Service aedits wll not be awilablo 10 Customer, In casoa wheR! packets are 101' as a result o( (i) tho negligence. aels or oml&alon, or Customer, Ita employees, contractors or agents or It. end users; (II) the flilure or mal/unction of testing equipmenL appllcaUans or syslems; (II) clrcumstllnces or causes be~and Ihec:onlrol of Ihe GSP, Including In,tances of Force Majeura (al defined a. Including wlr, riols, embargoes, strikes, or olher concenod acts ofworkers (whether GSP Dr athotl), casualUes or acclclents. malldo". or criminal acts of Ihln1 parties. or any olllor allies or clrcumllances whelher or a similar or dissimilar nalUle 10 the roregolng, whiCh prevent or hl"der the delivery of lhe Services): or (Iv) scheduled service maintenance, aneralion. or Implementallon. Such C1Wdits will be granted anly if Customer a"cmls BellSouth full and free access 10 Cuslome"s equipment 10 porfann necessary lasling, troubleshooting or relaled adlvlUel. Other Terms and CondiUons Cuslomer should .nlicip8te receiving any appliCllble credlt within 2 billing cycles aller Ihe month In which the SLA obloc:tlve was missed. Ir Customer bollove, a credil should have boen applied but was nOl, Cu.tomer must requesl aedlts willlln 120 days l1Aar Ihe date of the report from aellSovth giving notice that an SLA obJecllve was missed and that a credit Is being issued. If CUIIO",.,.. request for a dlllpulOd credit w:as In error, ClI$lomer mlY be charged (or 1110 costs Issociated with researching Ihe dlspuled crecll tIIquost. The lotal aedlls ply.blelor SLA objectives (athor than Iho In.lallation Date SIA) misled during ;lny one month periDd .h.n not exceed the tolal monlhly recurring l;ttarge' rar Ihe Servtce. In Ihal monlh. 19. Tenns and Condlllo". for GSP Service. (a) UUNET Technologies, Ine. ("UUNEr) ,xe~lses no conlrol over, and accopt. no re,pansibinly (or, the content af Ih. informaUon passing Ihrough UUNET'I hoct campulen, network hubs and points of presence (the 'UUNET Nelwork,. UUNET (u) MAKES NO WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPUED, FOR THE SERVICES AND EQUIPMENT IT IS PROVIDING, (b) DISCLAIMS ANY WARRANlY OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSe, alld (e) WILL NOT BE RESPONSIBLE FOR ANY DAMAGE CUSTOMER SUFFERS, INCLUDING ANY DAMAGES FOR LOSS OF DATA RESUL lING FROM DELAYS, NONDELIVERIES, MISDELIVERIES, OR SERVICE IHTERRUPnONS. Use of any Information obtained via the UUNET Network /I at CUllom."1 own risk. UUNET specilicaRy donla. .nt fesponsibllily for the IIcaltacy or quality of Informallon oblained through Its services. UUNET shill not b, liable (or any delay or f..u", In performance due 10 Fon:e MaJeure, IAIhlch .II.n mean adS 01 God, earthqulllca, labor disputes, changes In IlIW. ",gullUon or government policy, riots, war, fire, epIdemics, acts or omissions or vendors or luppliers, tnsnsporlalion dlftic:ultles, or other occurrences which are boyond UUNer. fOlSonable control. (b) An use of the UUNET Network and lite service must comply with Ihe Ihen-curTenl veralon or tho UUN~ ~ptable Use Policy rPOrlCy") IVlilable atlhe following UR~ www.uu.nOl/usepolicy. WNET reserves the rlg~llo am.n~ IIIe P~Hcy JnJm lime to lime, e"ectlve ~pon posUnO of the revised Policy atlhll URL. UUNET reserves the right to su:;pond lIle SOrvlce or terminate thIS Agreement orfeeUve lIpon notICe If UUNET determlnol Ihll the.. has been I viola lion of the PoRcy_ CUltomer Igrees to indemnify and hold harmless UUNEr rrom ony losses. damages, coals or ..pene., ruu.lng JnJm any thin1 party claim or allegeUon rCIDim' arisIng out or or rolallng 10 use 01 Ihe service, Including any Claim whlcll, If truo, would consututll a violation o( the Polley. 412002 ~/ CU6tomor IF.I'I"I~ Date: G~ J. ~. , 7 of 11 ., &.II "" "UU" \.IV III ... ... t . J II.., "101... V " . II ,II V ... . II... .., " \.IIII,"'VI JVI 1'<1"" IoU1U/U1J @ BELLSOUTH fc) Network (IP) addresses assigned rrom . UUNET nel-blode .~ non-pon.ble. Network (IP) address Splice aloeated by UUNET m~I be relurned 10 UUNET In the eVllnt CUslomer disaJnllnuesl8rvice. (d) PlI)menlls duo 30 diiyS after dale of tnvolce. AccounlJ Ire in default I' p.ymentls not roceived wIIlln =:10 days aRer dale or tnVo/eo If payment I. returned III UUNET unpaid Customer Ie Immediately In doraun and subjoc:t to a relumed chede chatge or $25 rrom UUNEt Aa:oun"; unpaid 60 days aRer dlte or invoice may hlllle ..rvlce inlenupled. Such lnlerrupllon doe. not relelle CuslcJmer or Ihe obligllUon 10 Ptly Ihe Monlhly Fee. Only a WfIIIen requesl to terminal. CUSlcJmer's sorvfco relieves Cuslamer of Ihe obllgallon to pay Ihe Monthly Fee. ACCOunts in defllult lID lubjoctlo an Inleresl charge on the oUl.landing balance of the lesser of 1.5% per monlh or tho m..irnurn rale permItted by la"". CUllomer IIgl1lOl 10 PlY UUNET lis realonable upense., IncludIng altomey IInd mllocUon agency rtHII, Incurred in enlorclng lis rlghls Under these Term, Ind Candillon.. Prlco, are exclusive of any la-e, which may be 10llled or assessed upon the Equlpmont or services prollided hereunder. Any such laxtlllhall be plld by Cuslomer. If Customer Is exempl from olhe"",ise applicable l8Jles, Cuslom., musl submlllb lu Idenll"callon number lInd exemption cenltic:ate at the sen1e lime II submits lhl. Agreement. (e) Billing for UUNET service will mmmol\ce when billng lor lhe cDrrespondlng BellSoulh.net8M '.rvlce commences. The Slart-up Chlllge (If any) may be Invoiced upon acceptance 0' Ihis Agreement by UUNET. Chargas 'or Equipmontsh,H be InvDicod Upon shipment Se~lce Is "!Voiced monthly In advance. Arter the end of any applicable Term CommllmenL UUNET reSOlVes Ihe righllo Chlnge lhe rates by nDlllylng Cuslomer 60 day. In advlnce of lhe eft'ectlvo date o( the change. (I) If UUNET delermlne. '11 Its reasonable mmmorc:l., Judgment Ihal UUNETs neMark Wit unavlIiJable 10 Cuslomer. the followfng will Ipply (for dedicated business eccess servicas al 12BlQlps or higher and dediculed web hosUng service's only): "UUNET so delermlnes Ihal UUNETI asp service WIIS unaval'abla for 'eIoIrer Ihan rour consecutive hours during IUch C1lendar monlh,. UUNET, upon Customer's request ""III credll CUltomer's eccount lor such month Ihe prorated charge5 for one day's GSP urvlce. Or If UUNET SD delellTllnol that UUNET's GSP service WIls UIlawDable lor four or more conseculive hoUl'l durlnlJ such calendar /11Qnth, UUNET, upon Customet's request. will credit CUSlomer's Iccount lor such monlh the prorated charges lor Onlll loIreek's servlca. Schodule maintenance shall not be deemed 10 be unavallablBIy 0' UUNET'I GSP service. Unless agreed to In wrllng othelWi'e, Ihls paragraph sets forth Cuslomer's ellduslve remedies lor unevailabilly 01 UUNErs GSP service. Tho temedles set larth In this pal1l9raph shall not apply I' UftaVDilablHly af UUNET. GSP sefYlco I. due to Cuslomer's Itqulpment ar Ie"'.". Cuslome"s accass connections. network unavallablllly Dulslde of UUNET. nelwclrk, or eVGnls of rorce majeura. Credits will nol apply 10 charges lor Cuslomor leeeas or any charges lor ID,..,'ce. other Ihan UUNETa asp service. CUslo",e~ with mulUplo connedlons atlho same Iot'aUon wiD not rocelve credils pur.suantlo this pal1lgraph If at least ane col1nedion conUnuel IoIrllh service lIva1ll1blo. Cuslomer's acxount shall nol be credilod more than the prorated charges for one week's selYlco In any calendar month. (g) These Term. and Condilions supersede all previous represenlallonl, undenlandings or agreements Dnd shall prev:ail nobNilhstandlng Iny variance wllh lerms and condillons 01 any order submilled unl018 and except to Ihe oztenlsuch variance Is expressly leI fonh In a Special E-coptlons sedion 01 the Order. A~ptllnce or this Agreement by UUNET may be ,ubJed. In UUNEr. absolute dlscrelion. to saUsfactexy completion of II credll check. Adlvalion olservl1:8 lIhalllndlcate UUNET'. acceptllnce of Ihls Agreement. Use 01 tho UUNET Network ccnstllUIOI ac:caplance o( Ihese TelTT1S and Conditions 20. ConndentlallnJormeUon (a) EJccept lIS IGt forth In this Section. or as odlerwfae expressly provided In Ihis Agreemen~ t!Il1C11 Perty agrees thaI (I) all InformaUon communicated to II by Iho olher and Idenllfied and marked 8S aconfidenlial,- whelher be'ore or ofter the dalo hereof. (II) aU Inrormltlon IdenUfIed as conrldendallo WfJlchll has access In mnnectlon with the Servlc:e:: and Equipment. and (III) lhls Agroemenl Bnd the Parties' righls and obllgaUons horaunder (collec:Uvely. 'ConOdontlal'n'onnltion;, IoIriU be, and """. be deemed 10 have been. received in mnlldonQl Ind will be used only lor pUrposes of Ihis Agreement. Each Pal1y agrees to use tho same melns it uses to protoct Its 0""" ccnlidenUallnronnation, bulln no ewnlless lhan reasonablo moene, 10 prevenl the disclosuns and pl'Otec:l Ihe c:onfidonllallty 01 Confidential Inrormatlon, No Confidential Inlannellon \'Ifill be dlsclosod by the reciplenl Pony \'\IIthoul the prlor """tlen consent 01 the disClosing Pany; provided, ho_ver, that each Party mly dis:lole this Agreement and ony disclosIng Pa"~" Confidentilll InrormaUon 10 those who are employed or ongaged by the recipfent P,lty. II' Igenll or thOle of 113 emOales who have a need 10 have IlIccess 10 such Inlormallon in connect/on IoIrilh tholr empla""enl or engagemenl. provided the recipient pany oolities such persons Df the obligations sel rorth In this Sedlon and such penonl agrealo abide by such obUgallol1s. (b) The obligations sel faith In subsection 1 B (e) .bove will not prellon' any P.rty rrom dlsclO:llng Infannallon that belongs to such Party or (i) Is already knovm by Ihe recipient P.rty wilhoulan obligallon or confldenll.lily olher than under Ihl, Agreement. (II) Is pUblicly known or becames publicly known through no unaulhorlzod act of lhe recipient Pany. (10) is r1ghtlull)' received from a third pany, (hf) Is Independenlly developed without use or the disclosing Party'. ConndenUallnformallan or (II) I, disclosed without ,inIlar I1Illt1ctlons to 0 third party by the Party o",,",ng lhe Conrldllntlallnlolmation. If ConlJdentlal InfollTlaUon Is nsqu....d III be discfoaed pursuanllo law, ,ogulllian, tariff Dr a requll1lmenl 01 a governmental aUIhorlly, or In connection with an IIrbnr:allon 0' modl,IiDn, such Confidenlla' Inlormatlon may be dlscfosed pur.suanlto such requirement SD long IS Ihe Party requlr8d 10 disclose Ihe Conlidenlil' InlollTlDlion, to the eldenl pOlllble, providealhe disdoslng Pany INtt., timely prior nollce of such requirement and mordln.les with the disclosinlJ Party In IIn erron 10 llmlt the nalure end scope of such requlrad dISClosure, Upon ",,"Uen request al lha ellplrallon or lermlnaUon of an Allachment Dr Ordor, .11 docomented ConOdentlallnrormaUan (and .11 copies Ihereo!) owned by Ihe requesUng Party (if previously received by Iho lormlnallng Party) IoIrill be retumed 10 Ihe requesting Party or wHI be deslroyed. with wrllton cortlfic:.allon Ihereo' being given 10 tho requeellng Party. The provisions of this Seellon wlllel.lnli"e the.expirullon or terminallon of any Order, Allachmenl and this Agreemenl lar any resson. (c) Conlidentiallnformallon will nollncludo any '..dblck, dal:a. answers, quesdons, commonts, auggesllons. ideas or the like, Ihal Custamllr sends 10 any BellSoulh Company telaling la the Services or Equ~monl. unl... Cu'lomer idenlines II :IS ConOdenlltl In'~rmatlon. EJeIl~oUlh aSSllmes no obllgallon 10 proled such inlallTlaUon II1Im disclosure and will be free Ie reproduat, use, and dlslrlbule the inlormation to othen without restnction. Be'South will also be frae 10 use any k1e.,. concepts. know-how or lechniquol contained In 'uch infarm:lUon or developed by them, lOf any purpole whatsoevet Including but nol limited 10 developing. manufacturing .nd marketing Services gild EqUipment InC:Ol}Jol1llinlJ such in(ollTloUon. Nothing conbllnlld In thIs Section restricts the r/ghlllnd abilily of BaS and BelSOlAh 10 use Infonnatlon conctJming Ihe eUaJllon 01 this Agreement and lho prol/lslol'I 0' tl1. Services and Equipment to Cuslomef In Inlerne' publications. 18) BellSouth Buslnos. Servlcos Tenns and Condltrons .01/2002 ~.c; Customer 1~~:I.rr:. (, Data: 'I;,:; B or 11 _... ..".\0._.., \ . .... I '" V', ,." I '" " I . I Vol .I., U J oJ @ BEI.LSOUTH l/l) BolISouth Buslnas. Servlcos Tonns and Conditions 21. General. (a) Cuctomer mav pannll Its cultomel'l or other authorized users 10 uIIII:. the Services as part or buslnelS openlUons or lervlces prolllded by Cuslomar, tUbjeCl to Ihese Terms. However, Cuslomll'" Sorvlces may nol be llSSlgned or lrans(err'd by Customer without Ihe prior wrtue., co"senl 01 Be'South. Any attempt by CII.lomer to a..lgn or lnansrer allY of the rlghll, dulles, or obDgallons 01 Customer wflt1 resped 10 Ihe Services without e.llSoulh's wrllton COnsenl shall bo void, and no ."'gnmenl Dr lransfer shalll'Dle.,e CuSlomer Inlrn anval ftl obllGallon. wllh respect 10 Ihe Services. BolISoulh may olslgll, delegate or olholWfse lransfor lis rights or obl/glUons herouncter, In wtlole Dr in pan, alany lime, bUI no such asslgllmenl shall release e.nSoulh from uMlmele IeSponslbllily lor the Sorvlces hereundor. (b) No adlon, raga idleS! of form, arising oul of the Sentlces or Ihello Terms may be bltlughl by ellhor pliny molO Ihan two yeart 'lIer Ihe Cause or action has erisen. (e) These Terms, Including any Orders ror the Services from Cuslomer which hew been accepled by BellSoulh, sel (ol1h Ihe enU", egreemenl bel'Neon Cuslomer and SellSouth respectJn\1lhe Services, and lupersede any prior WrlUen or lIerbal propo'IIIs, agreements. Imderstendlngs or other dlscuSllons resper:ling Ihe same. BellSoulh will nol b. bound by any provision conlalned In 8ny pun::hese order, confirmation, Com:spondence orolher communlcallon (rum CUslomer ""hlc:tlls al varlanco with, In addlllon to or connlccs ""ith any provtslon of Ihese Torms, unleu such variance, addition or mnnJd: Is .peeirlcally Idontlfied In a wrluen agreemenls/gned by CustomDr Bnd an authorized representative of BollSoulh which exprelcly ,.r.",nces the .PPtOprlllle provision or Ihesll Terms. No agenl. employee, or represenlatlve 01 ElenSoulh hil::l any aulhortly 10 bInd SellSoulh to IIny affirmation, ~pl1lsentallon, or Wilrranty "nless !he lame Is spedfically tel rorth In thllee Term. or In II wrllIGn agreement as provided above. (d) These Tenns and Ihe Services shlln be gavamed by the laws or lhe Slale of Goorgla, without reg.,., to Its connlcts 0' laws provisions. Ir any prolllslon or provisIons hereof shan be held to be invalid, Hlegal, or unenforcaable, Ihe validity, logllitV. and enforceability or !he remaining provisions shall not be'., any way arroCled or impaired thel'Oby. (0) The remedlefl of the pertJes sel forth herein lire not uclUsille unless expressly so staled Iloroin. .0112002 ~ Cuslomer Inilia" t' . Dale; 'i/J.',#- ~ 9 of 11 -. -...... - \... . , ,& IIU,"VJ JUJ I >Jill I , V llJl V! J @ BELLSOUTH II!) BellSouth Business Sorvlces Terms and Conditions Terms and Conditions Order Summary Tho undersigned Customer hereby ardon; frcm BellSoulh Telecemmunicallons, Inc. (-BonSoulh1 Bnd UUNET Technologies, Inc. rGSP1 BolISouth Businoss Service and the associated GSP sONlee, respecllvoly. or the lypo. at the localion and ror the prices and term specifiod In thIs Order Summary Fonn and Its re/aled Ordor Detail Form(:;) (conectJllely, this .Orderi. Bel/South BUsinosa Service and the aS$ocialed GSP sONico are provided, and Ihls Order is submitted, subjocllo and In accordance wilh Ihe BellSoulhll Business Services Torms and Condilions, and GSP Service terms Bnd condiUons, Bnd all applicable acceptable use policies. ThIs Ordor is valid only when accepted by an authorized reprosonlalive oJ BellSoulh. The lerm or the Service begins Upon completion or Installation by Bel/South or acceplance Dr this Order by Bel/South, whichevor is later. Order Summary Form 412002 ~~-~~ Customer IniUals' Z Oate:~ 10 of 11 @ BELLSOUTH BellSouth. Business Sorvlces Torms and Conditio", 24 Months . . . . . CUSTOMER HAS READ AND AGREES TO BE BOUND BY THIS ORDER, INCLUDING THE APPLICABLE OADER DETAIL FORM(S) AND THE BELLSOUTH- BUSINESS SERVICES TERMS AND CONDITIONS AND RATE SCHEDULES AND GSP SERVICE TERMS AND CONDITIONS, AND ALL APPUCABLE ACCEPTABLE USE POUCIES, ALL OF WHICH REPLACE AND SUPERSEDE ANY OTHER NEGOTIAl10NS, AGREEMENTS, PROPOSALS AND COMMUNICATIONS (ORAL OR WRIlTENt RELATING TO THE SERVICES LISTED OR DESCRIBED ON THIS ORDER AND SHALL PREVAIL OVER ANY ADD/l10NAL OR CONFLICTING TERMS IN ANY PURCHASE ORDER, INVOICE, ACKNOWLEDGMENT OR OTHER SIMILAR DOCUMENT ISSUED BY CUSTOMER. The tI1tes for this Service include the annual Domain Name reglstralion ree (for firstlwo years) with Ihe InlorNlC If the cUslomer purchases Domain Name Registration. After the Inlllal two years, the customor wm be responsiblo for payIng Ihaso rees directly to lhe InlerNlC. Any 8C11ounls for GSP chlrges shown In Ihls Ordor Ire rates e.lablbhad by the pllrticipallng GSP chosen by the Customer for servlea provided bt the GSP. . "CUsIomer selects this opl/an. BellSoulh wil anempl to rneellhe expedited InstaUaUon dato and Cu,tgmer will be charged the additional ono-Umll inslallalion 100 If and only il BellSoulh meets such dale or would hive done so bUI for dellys caused or roquosted bY' Cu,Iomer. 0112002 Cuslomer Int'8f ~ 081e: "1,) to - 11 of 11 BellSouth Business Internet Services Order Summary Form I Customer Legal Name: Monroe County BOCC The undersigned Customer hereby orders from BellSouth Telecommunications. Inc. ("BeIlSouth") and UUNET Technologies. Inc. (uGSp.) 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. ~ COmponents OneTIme Monfhly 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 NA T (must complele NAT Optional Feature Order Fonn) Option Not Selected N/A Other: Total $0 $2,010 Order Summary Form 9/2002 1 o 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 181 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). IMPORT ANT CUSTOMER HAS READ AND AGREES TO BE BOUND BY THIS ORDER, INCLUDING THE APPLICABLE ORDER DETAIL FORM(S) AND THE BELLSOUTH4D 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 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 Ihe Cuslomer 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 installallon fee If and only if BeUSouth meets such date or would have done so but for delays caused or requesled by Customer. 9/2002 Cuslomer Initiafo'~ Date: it I j'f J. 2 Exhibit H Order Form for Marathon Internet Service 07-16-2003 10:37am From-Bel ISouth Onl ine 6784417401 T-895 P.002/013 F-131 -. @ 8ELLSOUTH 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 orQering stand81d DedICated Internet Access otters. · Tne table below identifies which pages of the oraer form must be completed based on DIA service option sold to tne customer. One form must De completecl per DIA connection. . This form Should be Med out online and submined v,a E-mail. · Brief instructions for each input field will be d.splayea in tne lower left-hand comer 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 nav,gated by section in MS Word by clicking on View>Documenl Map In the menus 01 clicking on me Document Map button: III S,mply Click on the heading name in the Document Map and Word w,1I ,nstantly take you to that sectIon. · ALL. GRA Y RELDS MUST BE L.FT BLANIC - FOR BeI'Sourh.ne' USE ONL Y- . All forms mlJst be e-meiled tomacformsObellsoLl1h.com when complete. Service AvailatJility Cneck (Inqully-Only) - required before the sale tor ATM. Private ~Ine, and Frame Relay aOO"e DS-l Expedite Request ATM Permanent V,nual CIrCuit 0 ilJ a ill 0 ~,8A 0 2-8 ~ CJ 2-8 M;; 0 2-8, 80 181 2 - 8. 8E 0 2 - 8. 8F 0 2-8.~ 0 ~,~ No Frame Relay NxTl Frame Relay PaCkaged (InCluding options on SmanRing) Frame Relay . Customer Provided Eql,lIpmem Frame Relay - Permanent Virtual CirCUit Private LIne Internet Access (Including Options on SmartRing) ISDN 128k LAN - Pon Only eel/South 8andwlmn Advantage Is ttus order part ot an SRF/SAF? Order Summary-For Service Management Only {p (~ ~L\l- Return to Table of Contents Page , le275f34634tBdO 07-16-2003 10:37am From-Bel ISouth Onl ine 6784417401 T-89S P.003l013' ~-131 -. @ 8EllSDUTH :1 Monroe County BOCC Expedite Information Seller Information EC SpecialistlSales Specialist Information Sales Team Contact Information Sales Technical Contact Information 1 c275f34S34f8dO Page 2 07-16-2003 10 :38all From-Bel ISouth Onl ine 6784417401 T-895 P.004/013 F-131 '- @BELLSOUTH Return 10 T.ble of Contenl8 Service Availability Check (SAC) The SAC process ""ill ensure t/l81 adequate netWOrk ana oIner resources eXISt poor 10 making a customer commltmem SeMC8 AvallaDill1Y CFlecl<S are mandatory. and do not rep~e the Sel'V1Ce InquirieS Ihal muSI t)e SuDmmed 10 BenSoulh Telecommunic:ations to "eri~ availability of lransporr sel'Vices such as frame relay. SAC. mUA ~ aubmhllld for ATM In.,n.. Access, Frame Relay Interne1 Access (speeds abow DS-1), NxT1 Internet ACCM8, and Priva1e Line Internet Acee... ;:,AC I \ ~ e I _~ 1..4': Ill::' l. I 4"- (j '..jj I...... 1 ' j j '::J III J Inqu;ry~1y SACs mU$t be submilted when a customer plarns to make a buying decisIOn Wlrrun 60 Clays and BellSOtdh has grearer than a 4CW. Chance of winning me buSIness. Responses to Inquiry-only SACs include servIce avaIIaD'II'Y ancJ IOSlallation In18f\1al fOllowing receipt of a compleled order; Vl86e responses do no, reserve resources nor provide ac:tuallllstallatlon elate.. Inquuy-only SAC r&Suns are 9C)O(j for 30 calendar Qays. Flrm-order SACs must De suOmirtecl when Be.South has an 80% Chance of winning me D~sl"ess. Responses to Firm Order SACs IncluCle resoUlce reserYcltlon; a completec:l orcer muSl be rec&lveCl b~ BeUSoufh net no later man 7 calendar aaya after the re",."atIQn IS maQa, tCl De SlIDmlRfKJ when BeIlSOUth has an 80% chance at winning tne Dusineu. Responses ro Firm Oroer SAC. include reaource rese,."alion; a complelecJ orQer must be recelvso by BeIISoutn.net no later tnan 7 calendar CJaY. after me r&se",atlOO 1$ rnaCle. Basic Order Information 1 c27Sl34834tlW Page 3 07-16-Z003 10:3Bam From-Bal ISouth Onl in. 67B4417401 T-B9S P.00S/013 F-131 @ BEL1SOU1H A.IUm to Taru. of Contelll8 Customer Information Customer Billing Information MAIN Customer Contact Information lc275f34634r8dO Page 4 07-16-Z003 10:39am From-Bel ISouth Onl ine 6784417401 T-895 P,006/013 F-131 @ BE1LSOUTH Rltum 10 Tlble of ConllnlJl Customer Technical Contact Ll1-..tulllLf I \;LIIIIIL...:lj L.Jlll.::ICl - - - - ~ ~ - - - --~~-- -- - -- - -------- -- ---- --------- -- Tnls IS trle eustomer contaet responsIble for worl<Illg Wltn Bel/Souln VlroughOl.lt me provIsioning process, as well as me post. implementation process. This contact ,s ,~pons'D18 for I""lffaclllg MctI BeMSouVl.nel personnel, arranging for aoc96S allhe ser\l,ee locallOn to, BeI/SOUln pwsonnal. ana venfying operation of me OIA cannectlon. TIt.. person (or me lIternate Delow) IS 'fie only customer contact aulflonzea to conlact me BeuSoutn.net NeC'NorK Operations Cerner .f Jnere are ImemeJ eonneeJlviJy problems. Service Level Agreement (SLA)- 1 c27513463418dO CIS$ Page 5 07-16-2003 10:39am From-Be' ISouth Onl in. 6784417401 T-89S P.007/013 F-131 - @ 8ELLSOUTH Return 10 Table of Conten~ Circuit Information Internet Service Information &1.1In8 Intemet Connectlvlly For the fOllQwing queslIOn (WIll YO" Use Exisllng Registerec:J IP AGc:J~): If NO - Vlen proceea tel next S8C1ion. If YES _ BeIlSoUlh will evaluate wnetner or not me CLlStome(s registered IP address apace can be U88d1routed. Bued on me following criteria: (1) CuSlOmer nas a registereQ Clasa B or, (2) A minimum or 64 contiguous Class C AdCIreS3eS. BellSouth Service Management reqwN tne fOllOwing information to aQequately forecast and requesrlP AdClress space from the InterNlC. If lhis information IS not lncluQed. then 1tIe order WIll be pur on hold untilthia informalion is proviCled. IP Add,... Inform.lion 1 c275f3463418clO QIS Pllge6 07-16-2003 10:39am From-Bel ISouth Onl in. 67S4417401 T-S9S P.DOS/013 F-131 @ BE11S0UTH F",. -Please Nou.: Web HCMtina Provide,.. cannot u.. BellSOI.Rh .. II secondery rovider. 1 c275f34634/8clO tlss Page 7 01-16-Z003 10:40a~ F rom-B. I ISouth Onl in. 6184411401 T-895 P.009/013 F-131 ,-. @ BEllSOUTH --' Return to Table of Conten~ Internet Connectivity Optional Features OIA S<~I Vie,", OpllUl1 .....a'::jc:" -I U Be CUIIlI>kluJ A TM Permanent Virtual Circuit ~ Frame Relay NxTl m Frame Relay Packag80 (Incluaing SmanRing Options) 8e Frame Relay - Customer Prolfided Equipment 80 Frame Relay - PVC (Including Bancfwidth Acf"anrage) 8E Pnvate Line Intemet Access - (All Options) ~ ISDN 128k LAN - POrt Only ~ 1 cZ7513463418QO ass Page 8 07-16-Z003 10:40am From-B.I ISouth Onl In. 6784417401 T-895 P.Ol0/013 F-131 @8ELLSOUTH Re1~m to Table of Con1enlS Frame Relay Internet Access - Permanent Virtual Circuit Option No Frame Relay PVC Customer Equipment 256 Ktlps F1411 lc275T34634T8dl Page 8E 07-16-2003 10:40am From-Bel ISouth Onl ine 6784417401 T-895 P.Oll/013 F-131 @ BE11S0UTH - e BellSouth Business Services Terms and Conditions ,o[~ Terms and Conditions Order Summary The underaigned Cuslomer hereby orQeJ8 from BeUSoudl relecommunicationa. Inc. ("a.USoulh") ang UUNET TecMOlogies. Inc. ("GSP.) BellS4)lIrh BusIness Sef\l~e and me assoe.arecl GSP sel'Vlee, respectively, of the type. alltle Ioc:ation ancl for me pnces ana lerm :specifIed in ltl.:s Orael Swmmllry Form IIn" lie relll"''' Orger De~1 Form(~) (collecQvoly, 11'10 .Order"). aellSO",Ul ~:I,n.n Sef\l,ce and tne asaoc,ated GSP 1Sef\llCe are provided. and this Order IS suDmlnec2, subject 10 anet In acc:on3anCe wlltl tile BellSoulh<l> BuslF1ess Se",,ees Terms and Condl1lans. ana GSP se",1Ce 1Elrms and conditions, and all applicable ace QllClsa. Thl& Oreter is vallet only wilen accepteG by an ac.rtl'\OrlZed representative of BeIlSouUl. The lerm of the Se", begins upon ple1ion of Installa110n by BellSou1Tl or acceptance of tnlS Orcter by BeIlSouu\. whIChever is laler. 4/2002 CLlS!'Omer In,"QI1- DClTe' 07-16-2003 10:40am From-Bel ISouth Onl Inl 6784417401 T-895 P.012/013 F-131 @ 8Ell.SOum _. BellSouth. BUSiness Services Term. and Condi"ons --' $800 $588 J Ifv'lPORT AN-I CUSTOMER HAS R~D AND AGREES TO BI! BOUND BY THIS ORDER. INCLUDING THE APPLICA8L.E ORDER DETAIL FORM(S) AND THE BELLSOUTH. BUSINESS SERVICES T~RMS AND CONDmONS AND RATE SCHEDULES AND GSP SI!RVICI! TERMS AND CONDmONS. AND ALL APPLICABLE ACCEPT AILE USE POLICIES. ALL Of WHICH REPLACE AND SUPERSEDE ANY OTHER NEGOTIATIONS. AGREEMENTS. PROPOSALS AND COMMUNICATIONS (ORAL OR W"mEN) RELAnNG TO THE SERVICES LISTED OR DescRIBED ON THIS ORDER AND SHALL PREVAIL OVER ANYADDfTIONAL OR caMFUCTING TI!!RMS IN ANY PURCHASE ORDER. INVOICE. ACKNOWL.EDGMENT OR OTHER SIMILAR DOCUMENT ISSUED BY CUSTOME". fJOTE Tne ratH for trltS Se"'IC8 Include Ins annual Domain Name ntgisuation tee (for first t"'-O years) wilh (he InlerNIC if dl. Customer purcnasSli Domain Name RegistratIOn. Affer the initial twO years, the customer will be responsible for paying these reM CJirectly to the ImerNlC. Ally amounts for GSP Charges shown in 11'\15 Older are I1Ites estaDIl5hed by 11'\8 panlClpil1l1\g GSP dIols8n by tne Cuatomer lor &8nl1C8 provided Dy the GSP, . If Cusromer selects ltllS optlOl'l, 6el1~1tl will ill18mp! rc me8lln8 8JlP8Gi18a instaUallOn ClaW ana CIJ&tOm8r WIll Ile enargea Ine aac$iOnal one-lime .nsrallallon fee .f ana only ,f B8/ISoutfl m801S $UCfl dere or woulQ fNiv8 Gone so tlut for aelays caU58Q or reqY8518d by C1oISlOm8r. 4/2002 Customer InlTlols DOTe: - Exhibit I Letter of Agency/Authorization O~~5~~E (305. """1 ,"- JUfHI U, 2003 BellSouth Telecommunications, Inc. $75 Afotosgo 0rIve AtIente, GA 30324- Re: Letter of Agency/Authorization Gentlemen: ~. Of COUNTY ~-,.-.. MIyor Dbde M. Speh8r, DistrIct 1 MIyor Pro Tern MumIy E. Nelson, Distrtct 5 George Neugert, 0Isb1d: 2 a.1es "SonnY' McCoy, DlStrtct 3 D8vfd P. Rice, District 4 The undersigned hereby designates BellSouth TelecommunlCl8tlons, Inc. and Its amllated companies ("BellSouthj as Its agent for the purpose of (I) placing and coordinating orders fOr COmmunlCl8t1ons services and facilities, or related equipment designated by the undersigned (collectively, "Products" or "Sefvleea") with local exchange CIIrrters, Interexchange carners and other providers of communlCltlons-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 Instillation, delivery, maintenance, servicing or repair of such Products or Services, and the undersigned authorizes BelISouth to place such orders for Products or Services or to perfonn such other 1Idlvltles d88Cl1bed 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 BeHSouth, will be responsible for detennlnlng 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 underslgnecllntends that copies of this letter of agency and authorization may be given by BeIlSouth to Providers and that such copies shall be sufficient evidence for such Providers of BeIlSouth'l authority as granted hereunder. This letter of agency and authorization shall remain valid until expressly revoked In writing by the undersigned. Sincerely, [Cuslome~ ~ /_' By~ Name: Todd EriCkson Title: Director of Technical services Exhibit J Memo From Former Director of Technical Service on Change in Computer Cabling Procedure O~~JTY ~o~~~E (305) 294-4641 ('- ..--- BOARD OF COUNTY COMMISSIONERS Mayor Dixie M. Spehar, District 1 Mayor Pro Tem Murray E. Nelson, District 5 George Neugent, District 2 Charles "Sonny" McCoy, District 3 David P. Rice, District 4 (a) - '==~~--'. .:::0. ~g.~ -~- .. . - -::: ::. -~~ 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 are recommending 4 jacks for any new cable runs; One for computer, one for telephone, one for a printer and one for a mobile device (laptop, palm, etc). We are researching several vendors 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 ;1 9-16-03: 3:47PM: September 15, 2003 To: James L. Roberts County Administrator From: Edward Burr Monroe County BellSouth Dedicated Teclmician 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 I 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, --~O ~ 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 cosUo 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 t~~that I would do the wo!!c and that the cost of materials would have to be ~d ~er. After that I was told that another 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! 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. 1 ~ 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 S 5,926.49. I was told that the attome was willing to spend ten thousand dollars on his first quote an that wasn t t ere some test eqUIpment an a ox and hound (tone source ana amphfief)that could be ordered to use on the job. I presented the next quote to the directOr tor :I) 7:'368.17. 1 was told that he wanted 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# KV 6112F A 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 I Exhibit L Purchase Order 238545, Request to Purchase and Quote 9_ 9-03;1,:50AM; ,,..- "'. ;1 .. "" r:'~Gr.~ J j: t) ~~. ;~ ~;:8 S 4 .'~. M:)NROf. COUNTY 80AR() OF (:lUN T Y (l)t~~1I ';,':,.l O"IE:R~,; .- ... ---...... ....._.....--.~_.\-_..- - -.... -- - - ------..--..- : P U 8 C HAS E o R D f. R : -.. ..--.--....'.. -.... ~-- ...............- -.-.... - - - -----.---- VEI\jI)(.!R 00957:-3 CROSSPOINT SOLUTIONS, lNC 761 sW lOl ~OURT CIRCLE aUYER c.y-ssu~ton t-1I AM 1 ~ f L '~1:31.? I.J, Tf;:Rt"lS \/END PROD NO If EM COMMODITY NO QUANT r.r ",' -, ... 1.00 (;fJUN TY :'?'.AU::~ T'AX E~'<EJ'IPT i'~I..I"18e:R &40.:l0~2?C:5:..;.:(, ORDER ClAn: (l'; TF~ UATE (} .~. .I 1 ::'-'1: (';:;~ PI.lI~CHM..~ RF.-:Ql..!J. j:.:.:E:D APPRI)\'/E.O :5. H T. P T (1 ivj(JNF~O~:. r',OUN fY cuUNTY ATrORN~Y OFFLC~ 5('0 I.JHn!:.HE~~r) (/.qY~T (-)NI-.lF,)<--.::ROf-L v.~ Y l,JE':,'r. n. :n040 t '1.1\1 / (., .~'. -l. 81,.AI'.w:r-:T NO C0NFIRt'lIl.!(, N(") ~~"HONI:: ~ .':JO/:,....22(}..o;.A7 FRt:: IGHT UN 1. T MF.::A~>I)f'{E' I.II\I'[T F'RI('e: E~-:rr.:i'.II~'Et"! PRJI Inst,;.:J.ll.tng and t.')r:nin(5<til':~ ~:..ighl:.o':'~n qua.d drops ~.'" 9':ilB:. .7:2 ~:-';.8,5 M: \v ~ }- ~L0 Q ~t1 J~f ~Q f:/ r,l:' =J:i~.:l.Z.~:.t i.:::.l: t"~\'::~;/:'Lllit (o~.' i' .:~.'} ..~ r,~',I')(.." :!".;(:. \' (I i':~.!l. ~Il JF:"~'I.~t.'.':,.:~ . .'~:::r'I~'~.F.~ ... ..~. .......,..,_..__._.~.."....\~..... ,. ; r~\,..:~ j (. ;': ~ 9/1 aO'fd SlSf7<::S<::S0E:'aI SU8TOT.~L. F'Rf. .Ir:il-lT TAX r-'Uf-.:U~ASE f)ROE:R TOTAL ,:;) ~~FtS..; {'o ( .J .. () . ( ';' , 9~:;:? , ; fDlx?r fJ:J ~~fb ,:' l' (:'~. ..~~ (: ih foIl U,) i~,,:(;;"'~I..,t "01 ;\l ~1I1 n t .~ I -:,~:; ~~ '? . ';/;~i'~ _ ", roo r' ':' " , ::. .-, ONIS~H~~nd ALNno~ 30~NOW'WO~d 6S'0t 80-60-d3S 9_ 9-03; 1 " SOAM; b-18-0~; g'OeAM; :' ~Y-l.-.3 ..Ie? FROM_MONROB COUK~Y ATTV OPPle. ID.aesa823S16 ..--. ..-..... .... _... . ......... ..~.. ---... .. --..--... ---.. - -- .--- ..-...... 1t< ,,, 2 PAOli 1/2 PU.ClUSlNG OJ'J'JC~ . PH: 30S.1.~~S . 'AX: 30S-29~SlS ,- -...~. REQUEST TO PURCHASE To: ~~I Office Date: May US. 2003 Prom (Dept.): COUNTY ATTORNBY Naae: JOHN R. COLLINS ~~ By:~O D~:3. AccoUDt #: 675011590990 Phoael.BXt: 3478 Ship to Location #I:: 039 Gnm/Piojcct i#: ....-.. Qty. Ulllt P..odJl DeRrlptloa . UJdt Total Acct. 1# Cost Cast 1 .......... ........dCfttMlI --.n 41." .... . . Tofsl s,....T.I Itams ncWcd by : . 2003: Vendor Nate: CrossPoint SoIutiou.lDc. Remarb'R.r:comm~atloos: . Veador'= 008578 r~1olntIoa hoCnctIous Ra\liewed ~ ( ) By:_ PIP"t!"'~ 0Bke: ,..- -.. Rmewed ( ) By: Date: 5;;/'~~ I (~~M, Da~; MCl'D ...,.... U4* S/E a:Htd StS~~6~S0€:aI ~NIS~H~~nd A~Nn03 ~O~NOW'WO~~ 69'0t E0-60-d~S ..- "1-0., 8.0aAM; ; t ~y-~w-~~ .W.W~ ~OM'"ONROE ~OU"TY ATTY OFFICE JP.38S2923S16 UUlJ...,~ 4~.~O ~2ItOtI ~. :;l&.LU'.&Lnb I ~ ." .... J-", .c. & . ~r.. y.,..,.".... ~ 0-"'$ 1'1 SW .8. OUCQde .... K- JU74 . Tcl:PId)2:>>Dt7 1W: (IllS) 4...... Mr. T.w~ ...c.a, "~A- EaJ1r_ It.J304IO 'N:QOS) 2H4'" hie OISJUUIIIS o.....~~ 1II ~" 2 PACB !.t.l'2 t'"AC:I:. ..~ ~. 1128 JlIII: ~SJQJ IWlIIIlt..... ..........~.....Q~--+...._1Iilo......,.,.1Ji4_1be ......~ W....,.. bear__.,.. OIl .................... a...... on. ..~_fl.aJN'4 o.III..........J8Uliae.... '1..htoc ~ ~.ul_""" 111:.11 Will. 1111'" .....ar~ ....-..~~ .......,,-.,..~J .,.seCllblr, 'W ~ _aOJ ....CIIlb ...ClWttv...JWD add.... AI........... w.war J"~ ~ t_IaW1cJ... ~"'l lb- '. . ,r. . ". . IY',.I C ........ LMlIr. " . - .,- IS J cD 2 " 2 4000 40 . Z J '4 4- 2 .. 35l{:, s/t1 3:l'dd h .... h daltCA1D.....~ pII)CIIIw IE" "._ ')lilt * MAX llIed SII!--=.......~ .JasatCAt$ MAX"" ~ aBptprl4Ipt CAne., MI" ...... .....al6ltmu -talllik~CMAX)' QIoJtOf ...... A1M ,...~ __4ot c...~CA.VIJV" Ibp'hrp '-' IINP 7..2.. nm 8= Itl. ...."a... 8I8HDJD1J$ ...._...... SIIl....1IIe .......... .,._. ~""'PVCA r . If........ )OI'~nnllCl.~ Wlar...... . . .\J~ ~..tx:ta'5Ti ~ f ef2 rtIca S 1.1O'-OD S 2au S un $ 271M s. eus s 4U$ . IU$ I laCS... S 10... S ... . 25.61 S 1-'9 S 1.32 S 3.1. S 2M . 1'1.11 I 1.7S7.60 $ =:00 ~ O"'q"/&7 SISt7?;S?;S0E:'OI ~NIS'dH3~nd ALNn03 30~NOW'WO~~ 00'11 E:0-60-d3S Exhibit M BOCC Agenda Item D40, February 19, 2003 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: February 19.2003 ,Division: Mana2ement Services Bulk Item: Yes 2L- 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 o(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 polic:les that county contracts shall have a limitadon on liability in statutory amount (5200,000_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: N/A CONTRACt/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval. TOTAL COST: 547.670.03-/5 years BUDGETED: X Yes No COST TO COUNTY: 547.670.03 REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year APPROVED BY: County Atty 1L- .- ~.Ajd. C~~L~ Sheila Barker DEPARTMENT DIRECTOR APPROVAL: DIVISION DIRECTOR APPROVAL: DOCUMENTATION: Included .JL.. To Follow Not Required_ DISPOSITION: AGENDA ITEM # :2Jf't' Revised 2127/0 I Exhibit N March 7, 2003 Memorandum \ 1 O~'T!,~~E (305)294-_1 (-' --- BOARD OF COUNTY COMMISSIONERS MAVOR Dixie M. Spehar, District 1 M4y0r Pro Tem, Murray E. Nelson, District 5 George Neugent, District 2 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 FROM: Lisa Druckemiller Technical Services Suzanne A. Hutton tf4tf Assistant County Attorney TO: DATE: ~ 1.. ~.. 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 An and the equipment location were not filled In on the Items submitted to the County Commission. If the number 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. Enclosu res 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. II 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: ~ ~-t....; By: Title: ~a.4/l I?~h~,e-- '}It'lL J';J~oJ Title: February 3,2003 Insight Global Finance, Inc. 444 Scott Drive Bloomingdale,IL 60108 Attention: Ron Taucher Re: Attached Lease No. 1'1100+ (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 transactlon(s) contemplated by the Lease and to carry out its obligations thereunder. 2. Lessee's obligation(s) under the Lea$e 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 enlering 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 Ihat, 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 Ihe state where the equipment is being used by the Lessee. . 6. All req!Jired 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 146 of the Code or a private activity bond within the meaning of Section 141 of the Code Counsel By: Title: Date: 171004 ~ Insirt Global Finance, Inc. 3. ~~~<<J~ ~ n 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 Lellor, mean us, Insight Global Finance. Inc. J. EQUIPMENT LEASED: We agree to lease to you and you agree to lease r.:om us the equipment ("Equi~~ent'') i~ntified in the equipment. schedute(s) ("Schedule") executed in accordance with this Master Lease. Each Schedule shallmcorporate the terms and condltlollS of thiS Ml;Ster Lease, an~ 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 malee 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 terminalccl or canceled; that, except as provided in Section 1 S, you have an unconditional obligation to malee all payments due under the Lease, and that you may not withhold, set off or reduce such payments for any reason. You au~orize u~ to purchas~ th~ ~q.ui~ment from s~pplier ("Supplier"). You will arrange for the delivery of the Equipment When you receive the Equipment, you agree: to IlISpeCtlt to determme If illS In good workmg order. J. 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 tenn of this Master Lease. Lessee shall keep. or cause to be kept, a complete and lICcurate record orall such assignments in form necessary to compty with Section 149 of the Internal Revenue Code 1986, as amended (the "Codej. 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. ifso requested, to acknowledge each such assignment in writing within IS days after request therefor. but such acknowledgement shall in no way be deemed necessary to malee any assignment effective. The new Lessor will have the SUM rights that we have, but will nOl have to perfonn any of our obligations. You agree: that you will not assert against the new Lessor any claims, defenses or set-oft"s that you may have agaillSt us. 4. WARRANTY: The Equipment covered by this Lease is covered by the limited warTanties in effect at the time the Equipment is delivered, on standard tenns and 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, possession or acquisition of the Equipment is determined to be subject to taxation, you shall pay when due all taxes and govemmental charges tawfully 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 othelWise 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 illSured, until the Equipment is delivered to us at the end of this Lease. You arc required to malee all lease payments even if there is a loIS. You must notify us in writing immediately of any Loss. You agree to keep the Equipment illSured 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 often percent (10%) of such late payment and each month thereafter, and a finance charge of t.33% on any unpaid delinquent balance, but in no event greater than the maximum interest rate allowable under applicable law. II. 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 Equipmenl 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 benefil 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 canc;el or tenninate this Lease or any or all other agreements that we have entered into with you; (b) we m~y 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 malee 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 10 pay all of our cosh of enforcing our righh againsl you, including reasonable attorneys' fees and cosls. 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 sate 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 cOlIStitute 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 liscal 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. iz. INDEMNIFICATION: You are responsible for and agree to indemnify and hold us harmless from any and all (a) losses, damages, penalties, claims, suits and actions (collectively "Claims"), caused by or related to the installation, ownership. use, tease, 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 t2 shall survive the tennination of this Lease. I J. 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 Aareement. The Lease constitutes the entire agreement betweell you and us and supersedes all prior agreements, negotiations and purchase orders. (c) Enforceability. II any provision of this Lease is unenforceabte, illegal or invalid. the remaining provisions shall continue to be effective, (d) Amendment. This Lease may not be modified or amended except in writing siJTled by you and us. Yon aaree however, that we are authortzed, without notice to you, to supply mlsslnalarormaUon or correct obvious errors 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 pennitled to be charged or collected by appticabte law, and any excess payment as detennined by court order. will be apptied to the lease payments in inverse order of maturity, and any remaining el(cess 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 tnJe 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 ontyat the address set forth above. You may not move the Equipment without our prior writlen consent. 15. NON-APPROPRIATION: Lessor and Lessee agree that in the event that prior to the commencement ohny 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 tenninating such Lease as of the date of corrvnencement 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 pennitled by law inctude in your budget for each successive fiscal year during the tenn of each Lease . sufficient amount to permit you to discharge all of your obligations under such Lease, (b) you have budgeted and have available for the cllrrent fiscal year sufficient funds to comply with your obligations under each Lease and (c) there are no circumstances presentty 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 1a1er 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 el(pense. 16. PURCHASE OPTION: You are hereby gnnted 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 appticable Schedule. plus all other payments then due or past due hereunder. To exercise this purchase option, you shall give us irrevocable writlen notice of your intention to exercise such option and designating the tease payment date on which such purchase is to be effective, which notice shall be delivered to us at least thirty (30) days in advance ofthc proposed purchase date. We shall then promptly infonn 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 tenninate and we shall deliver to the you such deeds. tennination statements. bills of sale and other documents and instruments as you shall reasonably require to evidence the transfer of all right, titte 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. ACCEI'TAi\CE Countv Of Monroe Customer Lela' Name (Lessee) Insight Global Finance, Inc. (Lessor) Address 1200 Truman Avenune City Kev West State~ ZipJ3040 8"X~~ "",3-3-0.) Print Name: J. 117"~~/ki~ Titte: t..e.-.t:putJ,6A.. By: X Date Print Name: Title: FAX EXECU,TION: ~ fa~ versi~n of Ihis Lease, ~hen re~eived by us ,shall be binding on you for all purposes as if originally signed. However, the Lease shall only become e~ecllve an.d bmdm~ ~gamst us whe.n ongmally Signed .b~ us I~ our corporate office. You agree that th.e onty version of the Lease that is the original for all purposes IS the version contamang your fax signature and our ongmal SIgnature. If you elect to SIJTl 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 ~llJ;,\ICIPAL i\IASTER LEASE AGREE~IENT # WIl'!1!.I_ Insi ht Global Finance, Inc. Purchase lFMv Option L Number or Monthly Payments D Monthly Payment * ft,529.79 *PIUI sable taxes to be bWed iIIIllWIIIIUIII.h1l..,.... ....uon. I III". Quantily Description Model Serial iI SEE ATIACHED SCHEDULE "A" Equipment Location if different from billing address 1200 Truman Avenue City Kev West State El.......-Zip 33040 DEARCLlENT: This Schedule incorporates the terms and conditions of the Master Lease referred to above. This Schedute 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 tcnns of )'Our agreement with us. Please read them carefully and feel free to ask us any questions. 1. EQUIPMENT, TERM, RENT. & FEES: We agree to linance the Equipment described above for the number ofmanths and monthly tease payment ("Monthly Payment") shown above. Each such Monthly Payment shall be comprised ofprinc:ipal and interest components. This Schedule will commence on the date that any of the Equipment is delivered to you ("Commencement Datej. 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 Monthty 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 nol exceed 20% of the cost of the original Equipment. You agree to pay us a documentation fee of $49.00 each time you execute a schedule or several schedules simultaneousty. 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 our acceptance of this Schedule and receipt of a copy of the originally signed Schedule. . 3. LESSEE REPRESENTATIONS: By signing this Schedule you confinn that (a) the Equipment will be used for the purpose of perfonning one or more governmental or proprietary functions of Lessee, (b) you have authorized us to obtain infonnation 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 Customer Legal Name (Lessee) Insight Global Finance, Inc. (Lessor) By: X Date By:x~)J17~ Title: Ltt.. ,..4A 0 ~'cJJ. , --. -m, "- Print Name: lLcl. Mer ~e.l')l; 15 Address 1200 Truman Avenue City Kev West State...Ek... Zip 33040 Print Name: Title: Date: 'l - 3 - 0..3 , " .J a.. C"') '""':) I I j :'l ~ '< ! -.I ..) >. 1 co a. Q) '" ~ 'a C ~ CD o~ 2": oc<( _ (:): lIG""lD '!=....- 0.,..::1 b:i c.".c ::I IV ~ OlD(/) (J...J ~ c !. en Q! >. III e III Q. ! 0.. II '0 ~ a 00 .... .... 8 g C') &f .... ~ C ~ 0 V\ 4~-\; ~ ~ .~ )(. \J 'X (\)~ ~ 'lb- i ~11 'J .. t t I (/)1 ...J C <{ E z \ 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) Exhibit 0 Revised March 9, 2003 Proposal 5" ~a-: !I~ 9. ~ ~ifit ~. i~i i. ::a '< !l ~. gJi';J. i i! ~ J. ci,a11 I!~ ~I ii:l l)pt ':I'W llw ii~133333~333~333~~33333331Iii~iilifi~ !il=iif!~lrl!ll(iif~I~~I~;I~lrll.i!~fll&! get f~g>>i -~~~~ illll::J (cimi ii Q"m-u a._ llt!l 8.~f It l:~I~hHUldi rllhHHil~h~hi ~HI t f l~ !l }~~~'a~~i~~~~!~~~ ~rli ~ Q s &~fa! ~~ ~ia~ ?g i~~: i ; ;2i ~ i !t~~ i~ !~~::J ~ ~ = lS. ~ 1- i ~!. '1:1 f;J. i ~ ~ ~ ~i I ~, ~!~ _ 2. ~i!:i ~~ lla! ! i~S~ ilia 31 -6" -at- g--' ~ii ]. i .lD I J ~ i - 5. . III~!. ~::J i!l1 l ~~I! ~i :a i ,'i~ 8. ::J.~ 2 -I ~ j i j I iJ DI la 3'1:1 i- - ~.~ III i - i . ~3 .i fI 2. - ~ w wi. w"ew ~ ff la ':I' g ~ I ~lD&' D> C tIJI ::J 1II.:c ~~Q ii"~~ >s;!::J . ;.;: i3 ~III W 0 CIt en W ':.0. t u. .... !::J at UI .... en en co t - - at at at ~ I\) 8 -l 2 3 III ::J ~ CD ::J C CD " ~ ~ III !11 ;D ~ 0 it'" ~-~ - , 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 'LL- From: Yaktevich-Vicki s,~~t:<Wednesday, ''March '9tg'OO3S~49. PM,;~, , ,J' To: 'smajewski@aviinc.com' ~ra?f~~~~;n;~q~;,t~ .:. ;'. ,....~~a~~r:=;~'th. ~"I1l'\1,tli,~11~~J tb lhat t.. grand 16111 WI match the grand total OIltha ..rller".l's'lilll~1h~proposaJ; The ~ording shoulcf'read: "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.Q1~number,originaIlY approved by the ,board. I hope I survive all this............................ Thanksll!lI Vicki/ch 16 8/1312003 ~ I~ Proposal Summary ~ _I Audio Visual a.. Innovations \NSouIo: IU _Seen AnI tan!. Prepared for: Monroe County Florida Key West, FL 33040 Prepared ~y: Scott J. Majewski ~,.p ir.........U.........,.9 2003;\~ . . .;:l~""~'~~!If"'r' ",-, 1'O~llt~~:'. ,.', "". Project Name: Marathon EOC TOTAL EQUIPMENT COST - From Equipment List Includes cable, connectors, hardware, switches, relays, tennlnal blocks, panels. etc., 10 Insure a complete and operallonal system. $30,181.43 ENGINEERING AND PRE-INSTALLATION Including an required design. drawings. run sheets, Instruction manuals, programming. etc.. Also Includes all fabrlcallon, modlflcallon. assembly, rack wiring, programming. etc., some performed at AV contractor's premises. $6,556.48 INSTALLATION Including ell on-site Installallon and wiring, coordinetlon and supervision, testing, checkout, Owner training, etc. performed on the Owner's premises. $6,446.48 TRAVEL Includes per diem, hotels, air fare, and other travel releted expenses. $0.00 GENERAL AND ADMINISTRATIVE Including all G & A expenses: Clerical, bonds. shipping, Insuranca and warranties. $310.98 SUBTOTAL TAXES GRAND TOTAL $43,495.37 SCOPE OF WORK Please see attached Scope of Work ~o.oo r- S43;49~~ , InCIUde~ ' ~76'700~ WARRANTY One year parts and labor, exclusive from manufacturer warranties. Not included: Structural, ceiling, millwork, or AC/heat modifications, HV electrical or conduit. This EnUre Document and alllnfonnatlon enclosed Including drawings, speclflcallons and designs Is the property of Audio Vlsuallnnovallons (AVI). Proprietary Intonnallon provided to our client or his agents Is for the sole purpose of demonstrating AVl's capabilities and shall be held In confldenca. These Materials may not be copied, dlstrlbulad or disclosed In any way without the sole written pennllSlon of an authorized representative of AVI. Scott J. Majewski Sales Engineer .-,. Customer Signature Print Date \ ~ "'~".'. . . r , . . .~ ~~ ( ~ ~~. ~ \J ~~ l58~ :i.....JI! 0""::1 ~i~ 8~ ..,....", '" ~ -I to u.. Xi + ~Oo ~ - {'-" ~ ~ . i . ~ >\.S. - <C~ -r CJ c ~ V\_ 'J- t"'\ - ...." ~ CD W I . I !2 ~ do CJ" ~ .....$) . -::r- r'- .. (:) ....... M --:J- ... (j)@ " i ~ ::I o r. 01 ~ i ~~ ~ .i~ .e j:j i E CU _ I! . c lB Q>.lr III '@ (/) KE ~ ~ c J!i~ ~ iii ~ t i! ~ ~ i 55 c.E i c~.e 12 ;~ ~.i ~ E 'S!'j j . ! 2'.: 2 is III .0 .8 . e .-. .fi .;;! 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'.'.:, ~ II ~ 10 . 100.._ 1;$ b IlC " ;ji I E _i~oC I~ Jl .E Exhibit Q BOCC Agenda Item C27, April 16, 2003 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: ADri116. 2003 Division: Mana2ement 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 ProcedUTe 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 lotal cost of equipment. When Global Insight provided the equipment list, the total of the list did not match the amount of the approved contract. ,oJ \_J. (t' CONTRACt/AGREEMENT CHANGES: Equipment list added, price changed from $47,670.03 to $58,348.20. cJYt. STAFF RECOMMEND A TIONS: Approval as stated abovel ., t PREVIOUS RELEVANT BOCC ACf10N: Board approved contract approved with Global Insight on February 19,2003. TOTAL COST: $58.348.20/5 vears . BUDGETED: Yes-X- No COST TO COUNTY: $58.348.20/5 vears SOURCE OF FUNDS: Ad Valorem Taxes REVENUE PRODUCING: Yes _ No -X AMOUNT PER MONTH_ Year_ APPROVED BY: County Alty _ OMBIPU~ing ~ Risk Management_ DEPARTMENf DIRECTOR APPROVAL: .c::=~ q 4if Todd Em1cson . DIVISION DIRECTOR APPROVAL: ~' c~ D ~ Shci~W DOCUMENTATION: Included X To Follow_ Not Required_ DISPOSITION: AGENDA ITEM # r-' ~/ Revised 2127/01 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS CONTRACT SUMMARY Contract with: Insight Global Contract #_ Effective Date: April 16,2003 Expiration Date: April 16,2008 Contract PurposelDescription: To repair existing audio visual control system and Marathon EOC - Contract Manager: Lisa Druckemiller 5100 Technical Services/58 (Name) (Ex t. ) (Department/Stop #) for BOCC meeting on 04/16/03 Agenda Deadline: 04/02103 CONTRACT COSTS Total Dollar Value of Contract: $ 58,348.20 Budgeted? YeslZJ No 0 Account Codes: Grant: $ County Match: $ Current Year Portion: $ 5,834.82 001-06002-530-440-_ - - - ----- - - ----- - - . - ADDITIONAL COS~ - -- For: (eg. maintenance, utilities,janitorial, salaries, etc.) Estimated Ongoing Costs: $ (Not included in dollar value above> CONTRACT REVIEW Date In Date Out Division Director .Re1~ Risk Management 3 /;z ~ Y esO No~ O.M.B.!Purchasing # YesONo~. County Attorney 31.::1~1 JJ3 YesO NoQ/ I. I)J Comments: {--,l7n: LVIII/tIAY LbU ;Lz::/11 ~/7V ~ OMS Form Revised 2/27/01 MCP ##2 111004 1J.mIIIIIIIf3/18l2003 InsiFt Global Finance, Inc. ~ DEAR CUSTOMER: This Muter Leuc Agreement ("Master Lease") contains the lerms of your agreement with us. The words V... Vour and LCSRl! mean~. our customer. The words We., Us. Ou and the LeaMr, nan us. Insilht Global Finance. Inc:. I. EQUIPMENT LEASED: We afP'CC to tease to you and you apec to lease from \IS thc equipmerll ("Equipment") identified in the equipment achedule(s) ("Schedule") executed in ac:cordance with this Master Lease. Each Schedule shall incorpotate the tennI and conditions of this Master Leuc. and shalllnc:lucle suc:h otber terrN u we shalla.,. upon. Each Schedute is a scpante lease. independent of all other Schedules. In the lYent of a conflict bc:twcen this Muter Lase tnd the tem1I of a Schedule. the terml of the Schedule shall control. The word "Lease" when used in thil Muter Lease shall mean this Muter Lease and respective Schedule(s). 1. TERM. RENT, " PURCHASE ORDER: This Master Lease shall belin on the date set forth above and shall continue in effeet 10 Ionl u any Schedule remaina in effect. You promise 10 make all payments due under the Lease uccordinllO the terms set forth in the Schedule. You a.,. that this Lease Is a net IeaIe which may not be terminated or canceled; that. ucept as provided in Seelion I S. you havc an unconditional oblilation to make all payments due under the Lase, and that you may not withhold. .et off or reduce such payments for any reawn. You authorize us to purchase the Equipment fTOm supplier ("Supplier"). You will ammae for the dclivery of the Equipment. When you receive Ihe Equipment. you agTCC to inspect it to determine ifit is in lood worlcinl order. J. ASSIGNMENT: YOU MAY NOT SELL. PLEDGE. TRANSFER, ASSIGN OR SUBLEASE THE EQUIPMENT OR THIS LEASE. We may sell, usil" or transfer III or Iny part. of thi. Lease Indlor the Equipment. Durinlthe term of this Master Lease, Lessee shall keep, or cause to be kept, a complete and accurate record of all such ISsipments in fonn ncc:essary to comply with Section 149 of the Internal Revenue Code 1986, u amended (the "Codej. For this purpose. Leuee appoints Lessor to act IS its resistration alent. which appointment Lessor hereby accepts. Lessor agrees on Lessee's behalf 10 maintain records of aU usianments. Lessee asrccs. if so requested, to aclmowledSl: each such a$Sill1ment in writin& within 1 S days after request therefor, but such ac1mowledlement shall in 110 -y be deemed ncc:cssuy to make any assisnment effective. The n_ Lessor will have the same risllts that we have, but will not have to perform any of our obliptions. You Igree that you will not uscr1 Ilainst the new Lessor any claims, defenses or set-oITs that you may have Ilamst us. 4. WA.RRANTY: The Equipment covered by this Lease is covered by the limited warTanties in effect at the time the Equipment is delivered. on standard tcrmIand conditions supplied with each shipment of Equipment and which are incofllOnlted herein by this referenc:c. S. TAXES. MAINTENANCE. "TNSPECTION: The parties to Lease contemplale that the Equipment will be used for your lovcmmental or proprietary purpoae and. therefore, that the Equipment will be exempt from all taxes pmenlly lISsessed and levied with rcspc:Clto personal property. Nevertheless, if the use. possession or acquisition of the Equipment is determined to be subject to taxalion. you shall pay when due all taxes and lovcmmental charles lawfully usessed or levied against or with rClpCCt to the Equipment. You asrcc 10 use. operate and maintain the Equipment in accordance with all laws, resutaliona and ordinances and in accordanc:c with the provision of any policies of insurance covmnlthe Equipment. You aiICC to keep the Equipment in lood repair, workins order and condition (ordinary wear and tear excepted) and house the same in suitable shelter. and 10 permit us or our usisna to inspect the Equipment at my 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, theR or destruction of, or damale 10. Ihe Equipment (collectively "Loss") from Iny cause. whether or not insured. until the Equipment is delivered 10 us at the end of this Lease. You are required to J11llke allleasc payments lYen ilthcre is a Lou. You mJ$t notify us in writinl immediltely of any Loss. You asrcc to keep thc Equipment insured for its full replacement vllue Ipinst any type of Lou. and nlme us as 1011 pa)'CC until the I..cuc is paid in full. If Lessee is self-insured with respcc:t to the Equipment, Lessee shall maintain durinl the term oftbis Muter Lease an acluarially sound self-insurance prolram in fonn satisfactory to Lessor snd shall provide evidence thereof in fonn and substance satisfactory to Lessor. 7. LATE CHARGES: If any payment is not made whcn due. you asrcc 10 pay a laIC charge at lhe rite of len percent (1lW.) of such late plyment and escb month thcreal\er, and a finance chlrge of 1.33% on any unpaid delinquent balance, but in no even I sreater thsn the maximum interest rale allowable under applicable 11101. 8. SECURITY INTEREST: You grant us a security intcrcst constituting a first lien on the Equipmellt (including any replacements. substitutiona, additions, allachments Ind proceeds). You will deliver 10 us sill1ed financinl statements or other documents we request in order 10 perfect our security intcrcsl in Ihe Equipment. You appoint us or our agent as attomey in facllo execute, deliver and record financing statements on your behalf. 9. DEPAUL T: Each of the following is a "Default" under this Master Lea5e; <al you fail 10 pay any lease payment or any other payment when due, (b) you do not perfonn any of your other obliptions under this Lease or in any other agreement wilh us and this failure continues for 10 days sf\cr we have notified you orit, (c:) you bcc:ome insolvent, you dissolve or are dissolved. you fail to pay your debts as they mature, you assip your assets for the benetit of your creditors, or you enter (voluntarily or involuntarily) any bankruptcy or reorganization proceeding. (d) any certificate. statement, representation. WIIITIIIty or audit contained herein or herc:tofore or hereal\cr furnished with respect herc:to by or on behalf of L.cssee proves to have been false in any materill respect at the time as of which the facts therein set forth were Slated or certified or (el by lessee having omitted any substantial contingent or unliquidated liability or claim alainst Lessee. 10. REMEDIES: If I Default occun. we may do one or more of the following; (a) we may cancel or terminate this Leue or any or all other Igreements that we have entered inlo with you; (b) we may require you 10 immediatc:1y pay us all lease payrncnts due or to become due with respect to any or allleaset durinsthe fiscal year in which the Default occurs. whereupon such lease payrncnts shall be immediately due and psyable; (c) we may require you 10 deliver the Equipment 10 u. u set forth in Section 16; (d) we or our asent may peacefully repossess the Equipment without court order and you Vloill not make any claims asainst u. for damales or trespass or Iny other rCllSon; and (e) we may exercise any other right Dr remedy available at tllW or in equity. You alree to pay all of our cost. of enforelnl our richt. aplnst you, Inclulllnl reasonable attorneys' fHS and cosU. If we lake possession of the Equipment, we may aell or otherwise diapose of it with or without notice, It I public: or private sale, Ind apply the net proceeds (af\cr we have deducted an coslS related to the sale or disposition of the Equipment) to the amounts that you owe us. You asrec that if notice of sale is required by law to be given. 10 days notice shall constitute reasonlble notic:e. You will remain responaible for any lmoulltl that are due after we have applied such net procecds. All our remedies are cumulativc and arc in addition to any other remedies provided for by 11101 and may be exercised either concurrently or separately. Any failure or dellY by us to exercise any risllt shall not operate u I _iver of that rilht, InY other rishts or future rights or the rilht to modifY the terms of this Lease. II. CU~ENT EXPENSE: The obligations of Lessee. including its obligation 10 PlY the lease payments due in any flscal year durinS the term of a Lease, shall conslltute I current eKpeDse of Le.see for such tiscal year and shall not constitule an indebtedneSl of Lessee within the meanins of the constitlltion and la_ of the state in which Lessee is located. NothinS herein shall constitute a ptedse by Lessee of any taxes or other moneys (other than money. lawfully Ippropriated from time to time by or fur tile bcneJils of Lessee for this Master Lease) to the payment of any lease plyments due under I Lease. U. INDEMNI'ICATION: You Ire responsible for and all'= 1A) indemnify and hold us harmless from any and all (a) losses. damqea, pcnallicl. claiml, svits md actions (collectively "Claims", causeel by or retated 1A) the installation, ownership. use, lease. or polSession of the Equipment and (b) all cosll and auomeys' feea inc:umd by us retatinalO any Claim. You agree 10 reimburse us for and if we n:qucst, to defend us at yoor own cost and expense, apiTllt any Claims. You aane that your obliptions under this Seclion 12 shall survive the termination of Ihis Lease. I J. MISCELLANEOUS: (a) Chalcc of Law. This leise shall be governed by the IIWS of Ihe State of the Lessee (without TqlII'd 10 the conflict of law princ:iples of such Slate). (b) Entire Alree..cnt. The Lease constitutes the entire alfecment belWccn you and us and supersedes all prior Ilfeerncnts. ne,otiations and purchue orders. (c) Enfore.abllllJ. If any provision of thil Lease is unenforccabte. illegal or invalid, lhc remaining provisions shall continue 10 be eft'llCtive. (d) Amendment. This Lease may not be modified or lmended excC'pt in writinl signed by you and us. You a,rce however, tblt wc are allthorlzed. wltllout IIOtlce to yo II. to sllpply miulnaln'ormotloD or corred obvious errors In tbe Lease. (e) Usury. It is lhc CXpI'ClI intent ofbolh of us IIOtlO violate any applicable UlUry IIWS or 10 exceed the maximum amount of intereSt pcnnined 10 be chlrged or collected by applicable law, and any excess payment as detenninod by court order. will be applied 10 the lease payments in inverse order of maturity, and any remaining ex:cess will be refunded 10 you. (I) Nolle.. All notices shall be in Mitinl and shall be delivered to lhc appropriate party personally, by private courier, by facsimile tn~smiSlion or by mail. postaBe prepaid. at its addresa .ho_ herein Of 10 such other address as diretted in writing by such party. 14. TITLE; LOCATION: We arelbe owner of the Equipment. Legal title of the Equipment shall be with us. You aarec 10 keep the Equipment fi'cc from lien. and encumbnnCes. YOIU asm that thi. i. a lr\Ie tease. howcvcr, iCthis transaction is deemed to be a lease intended fOf security. you srant u. a .ecurity interest in the Equipment (includina any replacements, substitutions. additions. attachments and proceeds). You agree to deliver 10 us silJled fmancin, Slatemcllts or other documents that we request 10 proteCt our interests in the EquipmenL You will keep and use lhe Equipment only at the address set forth above. You may not move the Equipment wilhout our prior wrilten consent. 15. NON-APPROPRIATION: Lessor and Lessee asm that in the eVClltt"lt prior to the commencement of any of your fiscal years you do not have sufficient funds appropriated 10 make the paymenll due under I Lease for said fiscal year. you shall ha ve the option of terminaring such Lease IS of the date of commencement of such fiscal year by givinll us sixty (60) days prior wrilten notice of your inlcntlo cancel such Lease. You COVCIIlnt and represCllttO Ulthat (I) you will, 10 the extent pennilled by IIW include in your budBe! for each successive: fisell year during the term of each Lease a sufl"1cient amount 10 permit you 10 discharac all of your obligations under such lease, (b) you have budgcted and have aVlilable for the current fiscal year sufficient funds 10 comply with your obliptiOlll under each Lcue and (c) there are 110 circumstanCCS presently affectin. you thlt could reasonably be expected 10 adversely aft'eel your ability to bullae! fund. for the payment of SUmII due under elch Lease. No later than the lall day of the fiscal year for which appropriations were made for the paymcnll due under lhc Lcue, you shall return 10 us all. but not leIS than all. oCthe Equipment covered by the affected Lease. st your sote cxpense. 16. PURCHASE OPTION: You arc hereby gTlII1tcd the option 10 purchase the Equipment subject 10 this Lease in whole but not in part .as is. and .where i.-. priOf to the scheduled payment 0' the lease plyments due under such Lease, on any lease payment date at a price equal 10 the purchase option price shown for lease paymcn t dale on which such purchase i. 10 be eft'ective under the column entitled "Purchase Option Price" in the applicable Schedule, plus III other paymenlllhen due or past due hereunder. To eXCI'Cise Ihis purchase option. you shall give us irrevocable wrinen notice of yout' intention 10 exCl'Cise such option and desiptina the lease payment dale on which such purchase i. 10 be eft'cctive, which notice shall be delivered to us at least Ihirty (30) days in advance of the proposed purchase date. We shall then promptly infonn you of the Purchase Option Price 10 be paid on the lease payment date selected by you which Purchase Option Price may include olber payments due hereunder, and may be modified to reflect payments arising after the date we 10 infonn you. The purchase option herein snnted may be cxcrciscd by you whether or nol one or more Defaults have occurred and arc then continuina at the time of such exercise; provided, bo\W:VC\',lhat the purchase of the Equipment upon the eXCI'Cise of such option during the conlinuance of I Deflult shall nOllimit. reduce or otherwise affect liabilities or obliptions that you may have inculTed as a result of such Default. On receipt of the applicable Purchase Option Price in good funds, the applicable Lease shalllerminale and we shall deliver to the you such deeds. termination statements, bills of sale and olhcr documents and instruments as you shall reasonably require 10 evidence the transfer of all rig)ll. title and inlerest of us in such Equipment to you .as is' and 'where is". without WalTlnty, express or implied. excC'pt that we shall warrant that such Equipment i. free Uld clear of all liens created by us. ACCEPTANCE County or Monroe Customer Lelal Nam. (Lessee) Insight Global Finance, Inc. (Lessor) Address 1200 TrulMn Avenue City Kev West StalC:-EL..- Zip 3J040 By: X JU.Jp ~ Date Print Name: IIJ.. mill./!. ,lie /C Jill/.] Title: l~<p'1,1"- By: X Date Print Name:: Tille: FAX EXECUTION: A fn version of this Lease when received by liS shan be binding on you for all purposes as iforiBinal1y signc:d. HOMver,thc Lease shall only become: effective snd bindi"lapinsl us when oriBinally signed by us in our corporale office. You agree thaI the only ver.ion oCthe Lease that i. lhe orilinal fOf all purposes is the version contlining yout' fax signature and our original signalure. If you elccllo sign and transmit a Lease by fax, you waive notice of our ll:Ceptance of this Lease and receipt of a copy of the originally signed Lease. 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 I'-\Clrc:.h IV , l..ool . 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 helit 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 ilct business with any public entity In excess of the threshold amount provided in Se 7.017, for CATEGORY TWO for a period of 36 months from the date of being pi the convicted vendor list." Ipal Master Lease Agreement shall remain unchanged All other terms and conditions of the and in full force and effect. IN WITNESS WHEREOF, the pa Lease Agreement on s ereto have executed this Addendum to Municipal Master ,2003. Insight Global Finance, Inc. By: . ittb~~ Tille:- ~ - - - ~ 71tJ "- County of Monroe By: Title: '" ,I 1.I.NN!: A. HUTTON 1/..2~cJ EQUIP;\lE~T SCHEDULE Ii ~ TO l\IlJ~ICIPAL MASTER LEASE ACREEl\IENT # ~ Insiyht Global FInance, Inc. Purchase IFMv Option L Number of Monthly Payments D Muulhly Payment. r972.47 .Plus _able tnn to be bWed tlI"iWUlII\lll."'I.I..1.liIll W.<<fUllIIIII\lII. Quantity Description Model Serial " See Atlaheed Sch~uJe "A" Equipment Location if different from billina address City Stste Zip_ DEARCLJENT: This Schedule incorporates the ten'll!l and conditions of the Master Lease ref CITed to above. This Schedule is a separate lease, indepcadcnt olalt other schedules. All capitalized words used in this Schedule shall have the same meanilllS as used in the Master Lease. The MISter Lease and this Schedule contain the terms of)OW' agreement with us. Please read them carefully Ind feel free to ask u. any questions. I. EQUIPMENT, TERM, RENT, 1& FEES: We aJl'cc to finance the Equipment descn"bc:d above for the number of months and monthly leue payment (''Monthly PaymenC'') shown above. Each such Monthly Payment shall be comprised of principal and interest components. This Schedule will cornnencl on the date that MY of the Equipment is delivered to you ("Commencement Date''). Your first Monthly Payment is due 30 days from the Commenc:ement Date, and your rcmainin. Monthly Payments shall be due on the same day of each subsequent month until you have paid all the Monthly Payments due under chis Schedule. You authorize u. to adjust your Monthly Payment and the equipment description for this Schedule upon conJinnation from Supplier that you hllve ordered additional cquipmau within the first 30 days al\cr the Commencement Date, provided thllt the cost of such additional equipment does nol exceed 20% of the cost of lhe orilinal Equipment. You agree to PIlY ua a documcnlDtion fee of 549.00 each time you executc a schedule or several schedules simultaneously. 2. FAX EXECUTION: A fax version of this SChedule when received by us shall be binding on )'ou for III purposes as if originally signed. HO'A"CYer,1hc Schedule shall only become effective 3Ild binding aaainst us when oriainally signed by us in our corporate office. You alP"ee Ihallhe only version of the Schedule thst is the original for all purposes is the version containing your fax and our oo&illlll signature. If you elect 10 sign and transmit a Schedule by fax. you waive notice of our acceptance of this Schedule and receipt of a copy (If the originally signed Schedule. J. LESSEE REPRESENTATIONS: By signing this Schedule you confirm thai fa) the Equipment will be used for Ihe purpose of performing one or more aovcmmcntat or proprietary functions of Lessee. (b) you have authorized us 10 obtain infonnlltion concerning your credit standin. from any credit bureau, ref_e, or any olher person. and (c) you arc nol in default under the Master Lease U of the date of this Sch~uJe. County Of Monroe (Lessee) Custemer Lecal Name Insight Global Finance, Inc. (Lessor) By: X Dale BY'X~ Title: . ?111, .... PrinlName: I l/4l~,'/<..IS Date: 3/z,JD 1 Addre$s 1200 Truman Avmue City Kev West State Ek. Zip 33040 Print Name: Title: March 19,2003 Insighl Global Finance, Inc. 444 Scott Drive Bloomingdale,lL 60108 Attenllon: Ron Taucher Re: Attached Lease No. 171004 (I he "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. rcompany.). Based upon my examination of the Lease, Ihe information slalemenl(s) required for purposes or Section 149(e) of the Internal Revenue Code of 1986, as amended (the "Code") and such olher 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 Stale or a political subdivision lhereof, as those terms are used in Seclion 103 of the Code, and Is authorized by the applicable Constllution and laws to enter into Ihe Iransaction(s) contemplated by the Lease and to carry out Its obligations Ihereunder. 2. Lessee's obligatlon(s) under the Lease is a Stale or local bond wllhin the meaning of Section 103 of the Code. 3. The Lease and olher related documenls have been duly aulhorized, execuled and delivered by Lessee and constilute valid,legal and binding agreements enforceable against Lessee in accordance with its lerms. 4. No further approval, consent or wilhholding of Objections Is required from any Federal, state or local govemmenlal authority with respect 10 Ihe enlering Inlo or the performance by the Lessee of Ihe Lease and the transaclion(s) conlemplaled hereby. 5. The entering inlo and performance of Ihe Lease and other related documenls will not violate any judgment, order, law or regulation applicable 10 Ihe Lessee or result in any breach of. or constitute a defaull under. any inslrument or agreemenl binding upon Lessee or result in the creatlon of any lien, charge, security Interest or other encumbrance upon any assels of the Lessee or Ihe Equipmenl (as defined in the Lease), olher than those crealed by the lease. 6. There are no actions, suits or proceedings pending or Ihrealened against or affecting Ihe Lessee in any court or before any governmental commission, board or authority that, jf adversely delermined, 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 nol be or become a fixture or real property under lhe laws of the state where Ihe equipmenl is being used by lhe Lessee. 8. All required public bidding procedures regarding an award 10 your company of the Iransactlon(s) conlemplaled under the Lease have been properly and complelely followed by Ihe Lessee. 9. The Lessee shall be the only entity 10 own, operale and use Ihe Equipment during the Term (as defined in the Lease). 10. The Lease does not conslllute, and is 001 expected to become, an arbitrage bond within the meaning of Secllon 148 of the Code or a privale acllvity bond wilhin the meaning of Seclion 141 of Ihe Code 5';.( UI1,,1' A. flu 110" c~unsel By: Tile: '5...I.~LfI A/"'.!,,,,'" Date: ~ b i /~ ? / ' Proposal Summary i'l Audio Visual a, innovations ,. suz Far MI-.....1llIIi Prepared for. Monroe County Florida Key West, Fl 33040 Prepared By: Scott J. Majewski Dale Prepered: March 9. 2003 Proposal No.: Project Name: Marathon EOC TOTAL EQUtPMENT COST - From Equlpmllnt List InclUdes cable. connectors. hardwar.. switch.s. rela)'s, termlna' blclc:U, panels. .11:.. 10 insure a complet. and operallonal s)'stem. $30,181.43 ENGINEERING AND PRE-INSTALLATION Including alll1lqulred design, drawlng., run shaets. instruction manual" programming. etc.. Also Include. a' labrlcatlon. modillc:allon. .aa.mbly, rKk wiring. prognlmming, etc.. some p.r1ormed at AV contrac:tor's preml.... $8,55lS.... INSTALLATION Indvdlng .. on-slIe In8lallellon and wiring, coordination and lupervtalon, tes'Ing, checkout. Owner training, .tc. p.rformed on th. Owner's pr.mi.... $8.448.... TRAVEL Includ.s p.r dl.m, holals, air lare, and other Ifavel related expan.... $0.00 GENERAL AND ADMINISTRATIVE Including all G & A exp.nsel: Clerical. bonds. shipping. insurance and warranties. $310.98 CONTINGENCY This ,.. shaM be II holcl-back in the event 01 unlorseen chang.. or additions 10 111. I)'slam. In the evenl thla Ie. Is unnece..ary, lhe 'vll amount of tho contingency lee will be refunded 10 client. $4,174.66 SUBTOTAL TAXES $47,670.03 $0.00 $47.670.03 Included GRAND TOTAL WARRANTY One ye... par1s and labof. exclusive lrom manvlaClur.r warranti.s. SCOPE OF WORK Please see attached Scope of Work Not Included: Slructural, ceiling, millwork, or AClheal modifications, HV electrical or conduit. Thl. Enllnl Doalm.nllHld al Infolmallon .nclosed Including drawings. specJflcallons and deslgnsIs lh. properly 01 Audio InnoYatlOlll (A VI). Proprlelary information provided 10 our client at his agent. I. for Ihe sole purpose 01 demon.lnlllng A yr. c:epebllnle. and she' be helclln conftd.nc&. That. Materials may not be copied. distributed or disclosed In an)' way wlthoullhe sole wrI".n permi..1on 01 an authorized represanlallve 01 AV!. ~--: ~8:C ::I-J! ot::J Ijl 0 i ~ u.. J ~ I" ~ ! ~ l' 1 . ri .3 - "t ! I (1' - (t- , r- ~ t1' I- ..) "t . ~ 1'" '1'-. - ~ ~ ~ !i .. .- ~ lIll .- .. co ~ := ti .. <\0 ..... .,. ~ lIll Gl o .- .., ~ ;! ... .. ~ ::J o .s:. ~ I . -.fu -- .1-- - .. . e 'ii .: .. 2' :2 ::J . ~ i f~.j .~ 3 .! ~ j!:5 J j ~ .r i ! ., l~ j~!i I Jf ~I id i~t~ ~ :II . !i , ~ .i.1 :~ J ! l! ! J ij ! ~ ~ ~ a I! "::J" C JI " u.. ,~ ~ .11 cli~ l~ ~g~; i ~ ~8; . ~ ~ IJ ,gi5~i so..: "~.!t gdl C!:i{!l ;;- c:I... "!'E ,. si. Ii J:I ~ ~ :ll... ~ e '0 !" j S '0 S " =- a l ~ I'" is - .! 3':r~fi ~'9 .:!~!: Ju~~E~U 5-.. ~~~.. 2 l~ Ji'O : ~ji~ j~J~~'i )ljiJj-i} j l~ili~;III~1 II! : ~ 'f ~ j 1 r a i i ~ ~ w ~ i ! w ~ ~ l JJ ~ r ~~ ~ g ~ ~ ~ ~ j I ~ ~ r; i ~ i : ff~lti~ill!~~j~~~~~!~~~~I~~~~~~~~~~I~~f~i)ii . !_jllif~!)iI5555555655555555555555J~J_~!~1 ~ o g \so, .. ~I 11 ~i! ~ =IJ.i ~I- i3lJi . i HIH . ~ DELIVERY AND ACCEPTANCE RECEIPT LEASE NO.: 171004. , Lessee: COUDty Of MOD roe Lessee certi fies that the equipment covered by this Lease has been delivered. inspected, installed. is in good working condition, and is, therefore, accepted for pUlposes of the Lease. We request that the Lessor pay the vendor for the equipment and we understand that rental payments will conunence. X (Authorized Lessee Signature) (Title and Date) 03/19f.2003 Pag. 1 County of Monro. Amortizalon Table Compound Period ........: Monthly Nomlnl' Annuli Rate .... : 9.S80 % Effective Annual Rate ... : 8.904 % Periodic Rate ..................: 0.7133 % Dally Rate ........................: 0.02345 GAt CASH FLOW DATA Event Start Dete Amount Number F'erlod End Date 1 LOlln 1 2 Payment eo Monthly 0310112008 AMORTIZATION SCHEOULE - Normal Amortization DBte Payment Inte..st PrIncipal Balance Loan 04101/2003 47,870.03 1 04101/2003 972.47 0.00 972.47 ~,f!S7 .68 2 05101/2003 972.47 333.12 839.35 48,058.21 3 06101/2003 972.47 329.56 643.91 45,414.30 4 07101/2003 972.47 323.96 648.51 441786.79 5 08101/2003 972.47 319.34 863.13 44,112.88 6 09101/2003 972.47 314.88 857.79 43,454.87 7 10101/2003 972.47 309.98 ee2.49 42,792.38 9 11101/2003 972.47 305.26 687.21 42,125.17 9 12/01/2003 972.47 300.50 671.97 41,453.20 2003 Totals 8,752.23 2,535.40 6,216.83 10 0110112004 972.47 295.71 678.78 40,776.44 11 02101/2004 972.47 290.88 681.59 40,094.85 12 03101l2O04 972.47 286.02 688.45 39,408.40 13 0410112004 972.47 281.12 691.35 39,717.05 14 05/0112004 972.47 276.19 696.28 38,020.77 15 06101/2004 972.47 271.22 701.25 31,319.52 16 0710112004 972.47 266.22 108.25 36,613.21 17 0810112004 972.47 261.18 711.29 35,901.98 18 0910112004 972.47 256.11 716.36 35,185.62 19 1010112004 972.47 251.00 721.47 34,464.15 20 1110112004 972.41 245.85 728.62 33,737.53 21 1210112004 972.41 240.67 731.80 33,005.73 2004 Totals 11IBe9.64 3,222.17 8,447.47 22 01/0112005 972.41 235.45 737.02 32,288.71 23 02101/2005 972.47 230.19 742.28 31,526.43 24 03101/2005 972.47 224.89 741.58 30,778.85 25 04101/2005 972.41 219.56 752.91 30,025.94 26 05~1/2005 972.41 214.19 758.28 29,287 .68 27 OelO1/2005 972.47 208.78 763.69 28,503.91 03119/2003 Plge 2 county of Monroe Amortization Table Data Payment Intel'l!st Prtncip2l1 Ballnee 28 07/01/2005 972.47 203.33 769.14 27,734.83 29 08101/2005 972.47 197.85 774.82 28,900.21 30 09101/2005 972.47 192.32 790.15 28,190.08 31 10101/2005 972.47 198.76 795.71 26,394.35 32 1110112005 972.47 191.16 791.32 24,603.03 33 12101/2005 972.47 175.51 798.96 23,906.07 2005 Totals 11,669.84 2,469.99 9,199.ee 34 01101/2006 972.47 169.82 802.56 23,003.42 35 0210112008 972.47 184.09 908.38 22,195.04 38 03101/2008 972.47 158.33 814.14 21,390.90 37 04J01/2oo8 972.47 152.52 819.95 20,560.95 38 05101/2008 972.47 148.87 825.80 19,735.15 39 06101/2006 972.47 140.78 831.69 18,903.48 40 07101/2008 972.47 134.85 837.62 18,085.SA 41 08101/2008 972.47 128.87 843.00 17,222.24 42 09101/2008 972.47 122.86 849.62 18,372.82 43 10101/2008 972.47 118.79 856.68 15,518.94 44 11/01/2008 972.47 110.69 B61 .79 14,855.16 45 12101/2006 972.47 104.54 987.93 13,797.23 2008 Totals ",ee9.64 ,650.eo 10,018.e4 48 01101/2007 972.47 ge.35 B74.12 12,913.11 47 02101/2007 972.47 92.12 880.35 12,032.78 48 03101/2007 972.47 85.84 ee8.53 11,148.13 49 0410112007 972.47 79.51 892.96 10,253.17 50 0510112007 972.47 73.14 999.33 9,353.84 51 06101/2007 972.47 ee.73 905.74 9,448.10 62 07101/2007 972.47 00.28 912.21 7,5315.89 53 0810112007 972.47 53.76 918.71 6,817.18 54 09/01/2007 972.47 47.20 925.27 5,691.91 55 1010 1/2007 972.47 40.00 931.B7 4,760.04 56 11101/2007 972.47 33.96 938.51 3,821.53 57 12101/2007 972.47 27.28 945.21 2,976.32 2007 Totall 11,669.64 75e.73 10,910.91 58 0110112008 972.47 20.52 951.95 1,924.37 59 02A31!2008 972.47 13.73 958.74 965.63 eo 03101/2009 972.47 6.84 965.63 0.00 200B Totals 2,917.41 41.09 2,876.32 Grand Totals 59,348.20 10,678.17 47,610.03 ". County of Monroe Amortlzallon Table 03/1912003 Page 3 Last Interest amount decreased by 0.05 due to rounding. Exhibit R Limited Warranty Policy Sign Off Agreement FIe: Mer8lhon eoc Rev 4 031003A "LSSrr LIMITED WARRANTY POLICY SIGN OFF AGREEMENT . Job II: 03-03-6513 Oieot: Pllrchas. Order II: Monroe County Florida 171 OQiU Locatio.: 1200 TNIIIaD Ave. 2ad Floor, Smile 211 Key WllSI, FL 33040 Descriptio.: Mualhon iOC ThiS document provides for ICCCpCllu:c of. iastallatiolllRd sicn offIfiDal acceprance milestone ill accordance with the Purcbasc Order aapa:IDcat. Tbc customeI agrees that the WOtIc they have cootnlC1Cd Audio V'1SU1I Innovations (A VI) to perform his beco compldcd to tbcir .nstacti01l. Por a period of DIle year &om the ~on orlbis ronn. A VI Wlmllts the system mil sysrcm CompoDCDts, as IUppUcd IIIId iascaUcd by A VI. to bo he fiom dcfc:cts In maraiaJ IUId worbDllllshlp. A VI will repair or repllCC (at our option) 1ft)' procIw::t deemed by us to be detecdw.. This War'l"Inl)' doos not COVCI' problems caullCd by associated cquipmalt that blS beaa provided and/or coanecad by others, or cIamqe caused by aa:fdmt. mlsuse.1mpropet power soun:e. fire, ftood, lilblailllo repair, 01' ~tiOD by olber !ban A VL This wwr'Ulty is iadepenclcat or IIllDllllUfiIcIuRrs' wunntics. I~: Muathoo HOC MUcstcoc Dcscdpdon: Completion $~ I~ AVI Scbedul~ Value:: s;-::.~ Prio.w_j),Jc., A. Ytt!Jr;..v..1.. . "r.Jc~1{u tb ,..J(C.~ \...\-;;i-n...OfAaqlbox<;.tS"~Q~ "-Sign-off - '.::: :i"-::::Aiidlo'Visual' ,: ~..:::.: i'trio' "'~atlGns .",." ..,,' ".~'" I '. """ ' :.., ::'__~,b~:SMa.And~ . ". .:. :' . .. ,. .~ 6SS5 PowcrtiDe IloGd. SlIiW 413. R. Uudcrdala, fL 33309 Phone; (9S4) 963-6700 FM; (954) 963-1215 TO: MDoroe Colmty Florida 1200 'frum8Il A~ Key West. R. 33040 AttD: VICki YIkIcvicb CHANGE ORDER Numbcn Date: 1 May 30, 1003 Job Number. Job N.-= Job l.oaItim: 03-03-6513 Marafhro EOC 1200 TrumRl Ave. Kay Wr:sl, FL 33040 0ri1iDal COGIIad or PO NOlIIba: 111004.1 BlooIninadal& 1L 60108 Date of llriRinIIl CaalIad: 4I23f.W03 We hereby ape to uwkc: the cbanSC<l) spcd:8ed below: IIem :llw, ~ Model Und VIi" Ela 1 I ClwtnIII CNHBl.OCIC CllIIIIdoD BIocII S2OO.00 S1OG.lIO 2 SO.OO IO.DO , So.oO SO.DO 4 SO.DO So.oO 5 SO.OO 10.00 , SO.OO .10.00 1 SO.OO SIJ.110 . SO.OD SO.OO 9 $0.00 So.oo 10 SO.OO SO.DO 11 $0.00 SO.oo 12 SO.oo $0.00 1] SO.OO SO.OO 14 SO.lIlI .10,00 15 SO.DO So.oO l' SO.OO SO.oo 17 $0.00 SO.GO II $0.00 SO.OO 19 $0.00 So.oo 20 SO.OO SO.OO :II .10.00 SO.lIlI 22 SO.DO SO.DO :D JO.OO SUo 24 JO.OO $0.00 15 50.00 50.00 26 $0.00 SO.DD 27 so..OO SUO :&I so.OO So.oO 2t I SCl.OO $0.110 Subtotal 5200.00 Tmc 50.00 NOTE: lhiJ Ch..- Onl<< beconJcs pM of lII2d in OODtilmJaIIre with the elCisliatJ cooCl1lCt. WE AGUE ladJy to make the cbaDp(s) speciftallIbove at Ibis price. ~ 5%00.00 513011003 Pmious ContnIct AmollDl S 34.539.69 AUlhorizcd S~ (COD1l'ldOr) DIre ~ Cantr1lct AIDouI2t 134,739.69 ACCEPIED - The above prices IIDd spec:ificalioos oftbis Chanse Order are SIIIisf8Ctory md are henlby accepted All work to be pc:rformed undc:r same tam, .w eondidooJ as spllciftcd La. oncinal QOIluact unlcss Olhe:rwi$ll stipulated. Authorized SipWure (Owller) Priat Dale of Acccptl1llce 10 . cnange Orders Exhibit S Equipment Lists EQUIPMENT LIST A~I== YcwSam I'tlr IleIn&Seen And Hranl 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 ITI.. .' ~..,.. '., ,,'W- . i14~ ';.r. fi;U.....'. """'\!W.., ',' r,,'t'i": ... , ,,;uMi~ . J' ',.' . '. ''''!"., ':. . ,- ..' t~;.;~P" . ~,' : >~.~r~;'- ';:f,. ,~.. ~_'-'; '~1~-; :~..t~'J,:'_c'~;~:::)::, N~ -;.::' ,/..' ;.~,,' "":;"E*~', -.:' ': '" 1 1 vrestron ~ontrol rocessor $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 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 Mics $98.37 $1,180.44 LOT AVI Miscellaneous Materials $2,400.00 $2,400.00 !Zon " \ Q v c.J ..... (::{ Cor-~~IL- /.~ ' v'" (>'~... t', \ E4\..., q:\",,\ (~!1 t'l . ~O, I~' . '--1.3 Prepared for: Monroe County Florida Key West, FL 33040 Attn: Vicki Yaklevich '--I Audio Visual a, Innovations Your SooIce For Being Seen AOO Heatd. Prepared By: Scott J. Majewski Date Prepared: March 9, 2003 Proposal No.: Project Name: Marathon EOC EQUIPMENT LIST if " j , ~ ." ~l ;f" 'J1 ... ~ . 5.' . 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 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 Extran Comp Interface $606.67 $606.67 20 1 Extron VGA I 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 r-ar"'L ~,p t, ~,J' 013.31 I Exhibit T E-mail From Audio Visual Innovations and Change Order Summary Message Page 1 of 1 29 From: Scott Majewski [smajewski@aviinc.com] Sent: Wednesday~ J.une.18120034:aoiPM~ To: Yaklevich-Vicki 0 monroecounty-fl.com Cc: 'Erickson-Todd 0 monroecounty-fl.gov' If Todd could f,~ back the signed change order summary we~t1lget b.usllin.g 01:1, it. We are now about $10 - 20 underbt1d~trt:' ". ..' ., . ,." . Regards, Scott J. Majewski, MCP Sales Engineer 954-938-9382 Ext. 3307 Toll Free: 888-284-8912 Fax: 954-nS-4n2 SMa1ewsld@avllnc.com AVI... Audio VIsual Innovations 6555 N. Powerline Rd, Suite 413 Ft. Lauderdale, FL 33309 www.avilnc.com 8/13/2003 <.Ii~I::: Audio' VISUal _'Y!:~ ::::khfQVations', ':::'::~,~:~~~'Md~ " 6555 Po~ ~ Sulte 413, Ft. Llvdcrda1e, FL 33309 ~ (954) 963--6700 Pa: (954) 963-1215 TO: Modroe Couu1:y Florida 1200 TJUIDCl Aft.. Kay WflIl, FL 33040 Attn: V"1Cti Y 1kJovicb. CHANGE ORDER Namber: 1 Date: Job Nmubcr. 03-03-6513 Job NIlIDD: MaratbOd EOC Job U>adioa; 1200 T.rummAve. Key West, fL 33040 Orip CoaIr1M:t 01' PO Number. 171004.1 , n. 6010. Dale ofOrilllDal ~ 4123/2003 We hcNby aaree CD 1IIIIkc the cbaqe(1) speci&d bcbIIr. x- Qly, ~ lootllMI UailPrim Emadld PIioc 1 !II era .... NB-3 Balm*)' MIa 1162.<49 Sl,4G.41 2 I ... 60-311001 CaIIpIIIIr '-6q S&06.67 S4lII.15'7 S 1 Eldl1Ill 2f.49O.02 VGA OIIlIewfADdlo $130.00 5120.00 of 2 1ildran 70-0'7'7-0 I u--.u. 1!I!..3! _.M 5 4 Elmo 97374 PTC-201C 1P PIUC CUun 51,SOUl $5.513..32 II 1 IlIma ,.m~ PTOoIIOP. P/Zn: c-m 5900.00 $900.00 7 I JIInov KJO.2 CGIlIIlIloIa.- SS6.00 "'.GO . 1 .... ~31:z..o1 VSC 1511 s.:. Couwzlar S1.l33.3] SI,m..3! , -12 Crown I..W-SooA P'lldIIIIa .... 124....' (SUIU4) 10 1 a- CHI 2 a...1 :J~Po_ """ SW.oo WS.OO 11 1 ~ jlIJ..su.41 IPL-T-lD II' c-eu. S3~.3! $:1!IJ.JJ 12 I .... ~ lPL-T-lW IP c..n.u. S41US S433..3S 13 3' AVI AVI T..... ~ 165.00 ~.oo 14 , AVI AVI Prr-.... IIS.DO U9$.00 15 1 ^VI AVI NIIo S6~ 5654..30 If SO.OO So.oo 17 SCUlll SIUO l' so.oo SO.oo U 50.00 30.00 30 SO.OO SO,oo 21 So.oO so..oo :D so.oo so.oo 23 SO.oo 10.00 U So.OO SO.oo zs So.oO SO.OO u $0.00 10.00 17 So.oO 50.00 21 10.00 SO.OO U $0.00 SO.OO SubCxltal $12, 782. 71 Tax $0.00 NOTE: lbJI OIanp Ordcc bccoms part of and in CltUformaDce wilh Ihe exUdq CIOIIlraCt. WE AGREE hereby to make 1be c:baaae(s) specified abaft III this price. . 512.78Z. 71 11011900 PnlYious CCI1lnIct Amount $34,739.69 Authorized Si&JIaDn (C<lUbc:lIor) nlfll ReYised ConInlct.Amouat $47,522.40 ACClWfED - ]be above prices mid specitlCltioas of this ChenSC Order ere SadJfictory aad an: hereby IlC:Ccpted All work to be performed wdcr same term$ IIUd coadiliom .. spcc:i&d in oriJiDal contnc.ll UI11ess o1h~ stlpu\arI:d. Autb~ Sigrwturc (Owner) PIiat DalcOfAcccptaDce 10 - Ctllnge Onlel'S Exhibit U Limited Warranty Policy Sign Off Agreement, Change Order #2 - - .-----.- - .-- -.- ~002 ------..--- ~ '; Fie; Matdlon EOC Rev c 03100M_ )5 LIMITED WARRANTY POLICY SIGN OFF AGREEMENT Job II: 03-03-6513 CUe.tr Pun:bue Order N: Monroe COUDty Florida 171004.1 LoelUon: 1200 Trwnan Ave. 2nd Floor, Suite 21 I Key Wcsr. FL 33040 DucriptfoB: MIrath011 EOC This docwnent prolfides for acceptance ofa iD5taJlation II1d sign offlrlDaJ ac:c:cptaocc: milestone in ac:cordan.cc: whh the Pucchue Order aereemcnL lhc ~1amer acrees that the work they have eontraeted AudJo Visual Inno"ations (A Vi) to perform has been completed 10 their sati.sfac:tion. For a period of ORe Yell' from the cxecutiOll ofthfs form, A Vl1VllCraDts the S)'stem and S)'SCCm COmpOllCJlts. as supplied and ~cd by A vr, 10 be tree &om defects in material and woll.."lJlaDship. ^ VI wiJl rqJalr or replacc: (at our option) 111)' product deemed by US to be defective. This WIlTlll1Ly does Dot cover prvbJenIll cau.sod by associated equipment lIlal has btco provided aDd/or COlUlcc:led by others, or dlDJa&c CB\ISccI by accident, nUsU5e, improper poWer source. fire, floud, lIptnmg. repair, or alrcradoD by o1hcr tbIu A VI. ThJs WImIQty is indcpendcat of all manufacturers. WlVnmtfes. (tom: Manthon EOC Mnestooe Description: Completion $41,S_" ~~ AVl SchcduleVaJlIO: Sienaturc:: ~j2J ~ PriDlNamc:: lodd (2 ~..(k..$c)y\ 7 /),'1 }OS' Title; O\~(ibr- df- :r:-;.- Date of Acceptance; 8-Slg~tf .- TO: MOIIlOe COIIIII)' F'1oridil 1200 1'1'UIIWI Ave. Key 'Nett, PL 33040 Vic:ki YllcJcv.lcb SIoomIa n. 60108 Attn; lea M~ 1 9 Cea.... 2 I Iilmaa 3 I Elllrlln . 1 en- S 4 !Imo , I llIIIIo 7 1 EIlI1G . I l!mon 9 .\2 c.o- .10 1 Cra_ 11 , BxIr9a u I -- 13 39 AVl .14 7 AVJ IS I AVI " 17 11 a 1. 21 22 15 14 25 Z6 21 2. 1J ---- -.-----.-- --- "ell "'.....V' )L CHANGE ORDER NU1Dber: Date: 2 Job N\l1Jlber: Job NIIIDe: lob Loc:Waa: 03-03-6513 Mawthoa. EOC 1200 Trumwn Ave. Key Wilt, FL 33040 ':~"I ..Audlo:::Vts:ual ...y\ ,,::::.I:~n~:~.tf~~$' , '~'Bb1k.~hinCi$eiD.~a'~'" .,' . I" ': . I .,." I I' 6555 Powerline Road, SWill .13, Ft. Lau.dmlaJe, FL 33309 Pbon~ (954) 963-6700 Fa: (954) 963-1215 OriPnaJ ConJnc:t 01 PO.Nurnhc: : .'. 4 " We hereby .. 10 malcc the chmae(,) ,peCified below: Ducri Ma MB-3 ,.,..., GO-371-OJ ........ 26-49lJ..02 "" 1~77.o1 ........ 9137-2 lI7) 1-2 .,/' 9.,0.2 ....... lSO.JI2-o1 LM-300A CIil 60-5.4.0 I 660'44-02 A\II AVl AV) 171004.1 ~. ....5OlP'..._ . UIII PIfoc Bo.dIy ... CoaIput.r '-faoo VGA Caw. w/kJlJia t.tlllDfq \CD PTC-1DJC IP PIZIr ~ PTC-IIOR PIZIr c-. CeGms Maun&lI vsc UO S- ea.."W1tr Padh8n t.4IoI 2. c.... 3~ Powor Amp V IPL-T -52 IP CoaIrvDer JIlL.. T -sc [p COIlaau... TICb 1aDII ProllflmraiDg l'>Gsc 5162,'9 160U1 $120.00 533,33 SI,39J.33 SJoo,oo ''',00 SI,.33.3' $2.',47 ''''.00 $3".)) S43.J,Jl Ms.oO SI.5,OO $6$4.30 SO,DO SO.OO So.oo '0.00 SO.OO SO.OO SO.OO SO.OO '0.00 SO.OO SO.DO SO.OO SO.OO SO.OO Subtotal T8:I NOT.!: This ChaDie Order b~mes part of lIDd in caafonamee wi1b !he: exbi . WE AGREE herd,y to mue !.he c:hanF{,) specified lbo"c It this price Autborized S.ieDature (COIltmdor) A.CCEPlED - The above prices and speciJkatiOQJ of this tlwJp: Order In Satiuaclof)' aad III bereby accepted. AD work 10 be perfurmed undl!r lIIDe fcmIlI mW cODdilioas lIJ specified in oriBinal C(Inttact unless otherwise stipulated.. 10. Chqe Ordets 1/011900 Date Authorv.ed Slsnlt\ae (O'Wer Print Date of Act:eplancc: ~ .. S1,442. H S6C1U7 $120.00 $66.66 S'.51.UZ S900.oo S56.OO $1,133.33 ($1".1.,,) SS3,S,oo 13'U3 $433.33 S2,SSS.OO 1$".00 S6",3O so.OO SO.OII SO.oo SO.OO suo SO.OO SO,OO so.oo SO.OO SO,oo So.oo SO.OO '0.00 SO.OO 512, 712. 71 $0.00 SJ~782.n . $34,739.69 Exhibit V Final Invoice From Audio Visual Innovations Proposal Summary i'I.AadIo VIQI ., .bmavatIonS 1uSlm~ IfilBSlIII AlIi iieiiil. : Prepared for. Monroe County Florida Key West. FL 33040 Prepared By. Scott J. Majew8k1 D8te Prepared: Mard'l 9, 2003 Pmpoaal No.: Project Name: Marathon EOC TOTAL EQUIPMENT COST - Frvlfl ~ Lilt $21,013.31 InCludes cable, connectors. h11I'dwant, swIIcMs, rwIays. terminal b1ocQ, panels. ltc.., to Insure I com~ and operallonal system. ENGINEERING AND PRE-INSTALLAllON $5,752.50 Inc;ludlng 811 n.qutr1!Id cIesIQn. crr-Ings. rutl ~, lnItrudlon mlnuals, progrwnmlng. ell:... Also kldudes I. fabrIc:ItIon. m~ IISMIT1bly, racle. wlrirlg, progntnn*lg, etc.. some performecI III AV conttactDr'a premtu.. INSTALLATION $6.941.04 IncIudlnQ ... on-lIIte InItalllllion and Wlrfng, COOrdlnlltlon anet 8UpInIIaIon, lUIIncI, d1ec:koUl. Owner hIninG. etc. perform.., onlhe OWnefa premlaes. TRAVEL $625.00 Inc:Iudes pet diem, hotel., lir fwe. and otrlet lr1Ivel related -.-_. GENERAL AND ADMINISTRATIVE $207.84 Inc:IudIna AI G & A expena..: C1erk:al. 1lGnds, shipping. Insurence lInf ~ CONllNGENCY $12,,982..71 ThIs_ shllll be I lloId-badc In UIe e'*1t of unfo....." c:h8na.. ~ 8ddilions Ia tne aystem. In the ewnt \hill fee ia u~ry. the fua amount of 1/'11 C>>.6\l1'fl1M:lJ..... be refuncl~ 10 client. SUErrOTAL $47,52Z.4Q TAXes SO.OO GRAND TOT"L $47.522.40 WARRANTY Included One ~ paris and II.. exdualve fram manufadu,.,. _FTlIntlea. SCOPE OF WORK Please see dached Scope of Work Not Included: Structural, ceiUng, millworl(, or ACJheat modlftcationa, HV electrical or conduit. ThiI EnIire DoaMMl"t and .. ilfonnatlon endosecl inCluding drawtnaa, spec:lftcallonc and designs Is the prvpelt)' of Audfo 'IIIIuaJ lnnovetlonl (AVI,. Propr1etaty nfonnetJon PI'OYIded 10 our cIlent or his 1gents II fur the sole purpose of demorwtrating AVI'. CllpabHiIIes and 1"-11 be held In oonIIdel1C8. ",... M8tettaII m., not be copied, d!lIIrIded or cll5dosed In any..,. lNIlhout Ihe sole wrlltan permlulon of an eult10rtzed rapreaentllll\le of A VI. Sc:ott J. Majewski Sales engineer Customer Signature Prfnt Date Exhibit W Memorandum From Former Director of Technical Services O~~ITY ~o~~~E (305) 294-4641 (..' .-......-. BOARD OF COUNTY COMMISSIONERS Mayor Dixie M. Spehar, District 1 Mayor Pro Tern Murray E. Nelson, District 5 George Neugent, District 2 Charles "Sonny" McCoy, District 3 David P. Rice, District 4 . . (I) ~ .,1'.01"- ~ CC: RE: Date: Danny Kolhage, Clerk of the Court Todd Erickson Director of Technical Services Sheila Barker Inventory authorization, receiving and billing procedures 6/12/03 To: From: 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 Aeeount Issuing and Authorization Proeedure: 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 usemame, 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 confmn that the parts were received. When the user confirms delivery, the authenticated usemame, the computer address and date/time are recorded. Inventory Billing Proeedure: 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 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. Todd Erickson Director of Technical Services Exhibit X E-mail From TDC Page 1 of2 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 JoblD: 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@f1a-keys.com [mailto: Research@f1a-keys.com] Sent: Tuesday, July 22, 2003 9: 15 AM To: Roth-Cee@monroecounty-f1.com Subject: RE: Job Order Parts Approval Requested for JobID: 14561 HiCee. 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 S1. Suite 102 Key West, FL 33040 Phone: 305-296-1552 Fax: 305-296-0788 email: research@f1a-keys.com -----Original Message----- From: Tech Services [mailto:Roth-Cee@monroecounty-f1.com] Sent: Tuesday, July 22, 2003 9:09 AM To: Tech Services Support 10/16/2003 10/16/2003 r~~1; L Vi L 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 7/22/039:09:05 AM Your Technology Support Team Exhibit Y Memorandum From Finance Director CLERK OF THE CIRCUIT COURT MONROE COUNTY BRANCH OmCE MARATHON SUB COURTHOUSE 3117 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 TEL. (305) 289-6027 FAX (305) 289-1745 MONROE COUNTY COURTHOUSE 500 WHITEHEAD STREET KEY WEST, FLORIDA 33040 TEL. (305) 292-3550 FAX (305) 295-3663 BRANCH OmCE PLANTATION KEY GOVERNMENT CENTER 88820 OVERSEAS HIGHWAY PLANTATION KEY, FLORIDA 33070 TEL. (305) 852-7145 FAX (305) 852-7146 MEMORANDUM TO: Jim Roberts County Administrator FROM: Sandra Carlile ~ " . Finance Director ~ RE: DATE: Technical Services Inventory Account 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 inventory 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, this 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 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 retumed 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 Services prior to tagging the equipment 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 proc~sses 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 property 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 From: Erickson-Todd Sent: Tuesday, November 19, 2002 12:25 PM To: Roberts-Jim; Paras-Reggie; Pierce-Dent; McGarry-Tim; Malloch-Jim; Horton-Peter; Ingraham- Charles; Barker-Sheila; Toner-Irene; Hili-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 &fF ~aLARCaM- October 28, 2003 Ms. Patty Sutton 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 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 I aGB 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, 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 -fIIHM ~...........-.-.. sma ~~.~ co c~s~.?: OG....I.Il...s ELA - "'9= .- a'd 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 146GB 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 UHP Storage Unit 10GB", that when Solarcorn 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, :J:::o~ Senior Account Executive E'd COUI\ly COUI\ly SoIeI'COlll SoIMIoont ""rdI_ ""rdI_ Involce E~ ..... Solan;om O..e of 0.... .... OnI...AmOUflt - Qty Deecttplloft Order No. Invofce No. .....- _I No. 23_ 515.923 58,952 S1Drege SU...,....., 2GB. FIler. 12-88, 3625ge ll35278 1112012002 PBllE231 0050 53.5llO eur.S",," t<lt. 12_ e-.., c.nlS.... 352598 PB0E231000L $1,213 Adapter. Single Pot!, 1M BIt. PIIlx. 2GB 35~!l8 JFC0223F34958 $1,213 Adepler. S/r1gllI f'oft. 1M BIt. PIIlx. 2GB 36~98 JFC0223F3S011 5283 Trw1__. SrneI Fann Faclor 352588 Not .pplicMlle 5163 Tr8l1IC8iver. S~ Form FKIDr 352598 NolIPPIic:IIlIe SlIO Cable, ACK-OP'T-LC-LC-2G-1OM 2GB FC OPT 3625G11 NolIPPIaIIlIe SSO Cable. ACK-OPT-LC.LC.2G-10M 2GB FC OPT 352588 Not appt_ 5299 Tl2I'IlICIiver, Sm.. Form F.clOf 3~ Not 8JlIlIcMlle 515,853 F:' '.':::;::;-: r:::-::. ~.: ,~J~;':::: ~..: ':~::3:G: :==:: ::~:.C~: ....~.:::;~ ,~a~ar: :-C~~i:':~::; F~::I=-. 'let;:";" C~ :;:,C~: 23_1 $<4,500 so 15 Stanoge Un". 100B 357377 830443 1211612002 NoI.~ble $B2 1 Car1l1dll8. 0Il8. L TO Unnum, 200GB. 1 PI( 357377 Not.pplcabla 5112 1 Car1r1dIl8. oa... L TO Ullrlum. 200GB. 1 PK 357377 NoI.~ SB2 1 Car1r1dge, 0aIe. L TO UllI1um. 200GB. 1PK 357377 No! applceble 5112 1 Car1r1dge, oa... L TO UlIrlum, 200GB. 1PK 357377 No!lIlClICIIlIIe ~ 1 Car1r1dge. Oala, L TO UIIrlum. 200GB. 1 PI( 367377 Nol.ppIIclI.... $B2 1 Car1r1dge. OIID. LTO unnum. 200GB. 1PK 367377 Not.......b.. S92 1 Car1rIdge, Dale. LTO unn"",. 200GB. 1PK 357377 Not_leD.. Sa:z 1 ~, Oala, L TO UIlrtum. 20008. 1P1< 367377 Not appIicIllle S82 1 C81I1dge, 0aIe. U'O UIlrIum, 20008. 1 PI< 367377 Not applIeD.. ~ 1 C81I1dge. 0aIe. L TO Unnum. 200GB. 1 PI< 367a77 Not appIlclIb" SO 1 Reckmol.r1Il<lt for HP SLnSlore OL T AulDlO8dw 357'ST7 NoI_1ceb1e $820 231311 5....500 SO 15 Sledge UnI. 10GB 358"-4 840Q25 12fJ112OO2 Not_1cebIe $7,2211 1 ...___. Su<eS\ore UlIrlum. 1/8 35811-4 12fJ1T.2OO2 oEH2L01801 $1,1)48 1 H.-d orne. 1-4eGB. U320. BOP. Un......1 35891-4 3/1812003 ECV29W58 58.278 $8.00D ..OBI Tota' tor PO 231CM1 and 231318 231M1. 54,500 50 15 StcnQe un_, l00B 3728!1& 870138 el1212OO3 Not appIlCIbla 51.0Il0 1 HIItd CtIve. 1-4eG8. U320. BOP, Un_I 3728!1& $1,090 1 Hard 0rtlIe, 14eG8, U320. BOP, Un......1 3721leB ECV2YL7B $1,090 1 Herd 0rM0. 1-4eGB, U320. BOP, un...,.1 372_ ECVOG3H8 S82 1 c.tndQa. Data, L TO UllrIum, 200G8. 1 PK 372_ Notap~ S82 1 C~., Dill. LTO U\IrlUm, 200GB. 1 PI< 372_ Not applc:abll S82 1 C~.. D.... L TO UIIIUn, 200GB. lP1< 372_ Not applclble S82 1 CftIdge, 0aIa. L TO Ut.....m. 200GB. 1 PI< 372_ Not applc:abll S82 1 CaruIdg.. 0aIB. L TO Ullrll.Im. 200GB, 1 PI< 37288ll Not applc:abll S82 1 CftIdge. 0aIB. LTO 1..IIlnlm, 200GB. lP1< 3728ll& Not applc:abll S82 1 c.tndQ., 08Ia, L TO lJlIrtum. 200GB. 1P1< 3728l1l1 Not appliceb" S82 1 c.rtrtdG.. 0818, L TO UIIr1Jm, 200GB, 1 PK 372_ Not appllcabla 582 1 C8rlrtdOe. 0aIa, LTO UtIRlm. 200GB. 1P1< 3728!1& Not appiC8llle 582 1 c~., 0aIa. LTO IJllrUn. 200GB. IPI< 3728l1l1 Not lPPiC8llIe S82 1 Car1IIlIlII. De. LTO UlInlm. 200GB. IPI< 3728811 Not IPPIc:abII S82 1 CaruIdgI, 0aIa, L TO 1JItr'um, 2lIOG8. ! PI< 3728811 Not IPPIc:abII S82 1 CIlrtltdQe, Oata, L TO U11rUn, 200GB. 1 PI< 3728811 Not applalllle S82 1 CIr1r1dge. oa, L TO unnum. 200GB. 1 PI< 3728811 Not applcalH SB2 1 C-.tg8, oa, LTO UIlr1urn. 200GB, !PI< 3728Bl1 NotIPP- SA.!iOO AI Equipment SOld to MOnrotl COooly 0aIa Center {BOCC)lince June 1, 2002JdI PO 235041, 235369 23&476 p'd Counly COlmly SoIarcom Solareom Purchas. Pur""... S.l_ Solate_ I!qulpm""t Daile of ........... Order No. Order Amount Order No. In..olce No. Descrlpllon Invoice Amount Serlol No. 359447 844387 0",. Drive. 73.4GB. UlllO SCSll0K 20030121 Monroe County_. NOTE: THIS EOUPMENT WAS RETURNED TO nol eharg8d lor Ihi. SOLARCOM - INCORRECT PART NO WIIS ORDERED equlp....nt 361031 849261 D,s. Drive, 146GB. U320. 10K RPM 20030219 Monroe County Yr<lS $7S00CClB NOTE: THIS EaUIPMENT WAS RETURNED TO not ch",~ for thie SOLARCOM - INCORRECT PART NO WIIS OROERED eQuIpment All Equlp,.,.nt sold 10 Monroe County Oala Cenl", (BOCC) sonee June I, 2002..1. Eq",p r.tumed to Solarcom S.d Exhibit AB Solarcom Invoices r..... 1 of 1 , ....~ (' '~~2S98 l~~. ~~ ~~~ PO Bo% 105544 Atlanta, GA 30348-5544 (770) 449-6116 (phone) (770) 582-8836 (fax) F,deral Tax IDI 41-1254123 ~.. ~ t~~~t/5m c~~t~~ 1 e 1200 Truman Ave Sui te 211 Key West. FL 33040 -- Monroe County Govt Tech Svc 1200 Truman Ave Sui te 211 Key West, FL 33040 ." 2 QLA2310FCK 2 1889700 1 19666000 2 1968900 1 1968900 1 1990600 Qlogic Single Port PCI Adapter Card SERIAL. JPC0223F34958 JPC0223F35011 Adaptec ACK-OPT-LC-OC-2G-10M 2GB Cable Adaptec DuraStor Bundle Kit SERIAL. PBOB231005Q Adaptec ADA-lU-2G-SPP LC XCVR Spare Adaptec ADA-1U-2G-SPP LC XCVR Spare Adaptec 7210S DuraStor Kit SBRIAL. PBOB231000L 2,426.00 100.00 8, 952 .00 ,/ 526.00 299.00 3,550.00 (\ V"~ V \,0\.\ \~\ J For questions concerning this invoice call Michael Brunet at 800-241-9882 Bxt. 100 WIRE TRANsnR INFORMATION BANlt: South Trust Bank of Georgia ACCOUNT: Solarcom LLC ACCOUNT': 68889606 BANlt ROUTING: 061000256 SWIFT COOl: SOTRUSU OVERNIGHT ADDRESS Solarcom LLC One Sun Court Norcro.., 16,136.00 'ei'1~idDI ,_~:111 PO Box 105544 Atlanta, GA 30348-5544 (770) 449-6116 (phone) (770) 582-8836 (fax) Federal Tax ID# 41-1254123 .. .6.~\ '1~i:.I~yqit.,> ;';"';'p!si..; ',. 106/12/2003 I 870138 I 1 of 1 . 'i :-:Cu.to1n.,,: ',': ".. Iii.. Ord.~f '''17~655 . I" 3;28~6' 'I ~no ~~~ Attn: Accts Payable Monroe County Data Center 1200 Truman Ave Suite 211 Key West. FL 33040 ShfPe.~zr9' Monroe County Govt Tech Svc 1200 Truman Ave Suite 211 Key West. FL 33040 15 1 C7971A OBK0362 10GB Storage Unit IBM 146GB Hard Drive SERIAL# ECV2YL7B HP LTO Ultrium 200GB Data Cartridge-1PK IBM 146GB Hard Drive SBRIAL# ECVOG3HB 4,500.00 15 2 STORAGBUN:IT OBK0362 ,f. I::J .~ ~i~ ~./y.f...iJ ~ --:,~"n , ,) L..' ,/ uJ /?~/ljA For questions concerning this invoice call Michael Brunet at 800-241-9882 Ext. WIRE TRANSFER INFORMATION BANK: South Trust Bank of Georgia ACCOUNT: Solarcom LLC ACCOUNT#: BANK ROUTING: 061000256 SWIFT CODE: SOTRUS44 OVERNIGHT ADDRESS Solarcom LLC One Sun Court '~: t';;;~: - "." '.' ". ~' t 4,500.00 98.00 .00 4,598.00 . '~; ~trI0'''nt.Du. (V.Pl.':'~ 4,598.00 ....... .~~~ PO Box 105544 AtlanttJ, GA 30348-5544 (770) 449-6116 (phone) (770) 582-8836 (fax) Federal Tax IDN 41-1254123 'I.; .",', ~ ..... 112/16/2~/ II 839443 II 1 of 1 (~'ill ~7::-1 !i11CARCDitf... :~ t~~~iy A8m C~~a~le 1200 Truman Ave Suite 211 Key West. FL 33040 ~--:J"'io' ~.~ , . . ".. ! '........,- Monroe County Govt Tech Svc 1200 Truman Ave Suite 211 Key West. FL 33040 ... ,,;.,..,,~. IintI&J 10 ...;.~ ~; 15 10 STORAGEtJNIT C7971A ** Freight bill to follow. 10GB Storage Unit HP LTO Ultrium 200GB Data Cartridge-1PK 4,500.00 ~ (\ )J/ ~!. -1 V d ~1 0:'; 1;,0;7 .,~ ~ c/, J..I:P ~z:211{a For questions concerning this invoice call Michael Brunet at 800-241-9882 Bxt. 100 WIRE TRANSFER INFORMATION BANK: South Trust Bank of Georgia ACCOUNT: Solarcom LLC BANK ROUTING: 061000256 ACCOUNT#: 68889606 SWIFT CODB: SOTRUS44 )~:~; ... ~.',," ,'Y;~i :;; f;_ /t OVERNIGHT ADDRESS Solarcom LLC One Sun Court Norcross, GA 30092 ."',',, J." 'Ii .00 .00 4,500.00 .mII Tel PO Box 105544 Atlan(.j, GA 30348-5544 (770)449-6116 (phone) (770) 582-8836 (fax) Federal Tax 101 41-1254123 DIItIa 112/31/2002 'I ~ :>1< InvalGe .... 840925 II 1 of 1 .... Order "1 358914 !i!il1CAIlCDM'" 174655 SoIdToc Attn: Accts Payable Monroe County Data Center 1200 Truman Ave Suite 211 Key West. FL 33040 ShIp.... To: Monroe County Govt Tech Svc 1200 Truman Ave Suite 211 Key West. FL 33040 -.. ,.... . , IItwJt. ~~;;:~:n k _ .a...-:......,( . '.' ;~,,!'-. ..:;....,. c,.:.... ..,.. ;.i'f;'<~i ,~~: 235369 DUE UPON RECEIPT Ianice Long EnUIf .. ,. . 15 STORAGBUNIT .. C9572CB 1 08)(0322 10 .;. .~ . . . ",.. . . Amount 10GB Storage Unit HP 1/8 SureStore Ultrium Autoloader TL SERIAL' DBH2L01601 IBM OBI-IBM 146GB U320 68P Drive SERIAL' ECV18RGB 4,500.00 .~ !/It' 1/ / ~ n f/;'; ~"/. /~- . / -<:...-::U . C' ~ ~I. . --'~'., '. 1;1' t..... j' L (~-:-" . ~,I,J) /I \. \, " /~ ' I ,/ For questions concerning this invoice call Michael Brunet at 800-241-9882 Ext. 100 WIRE TRANSFER INFORMATION BANK: South Trust Bank of Georgia ACCOUNT: Solarcom LLC ACCOUNT': 68889606 F,.,a.... BANK ROUTING: 061000256 SWIFT CODE: SOTRUS44 OVERNIGHT ADDRESS Solarcom LLC One Sun Court Norcross, GA 30092 T. 4,500.00 13.00 .00 T_ .00 4,513.00 I ;" ~.."... ~~~~. 4,513.00 Exhibit AC Documentation on Christmas Party Sep 24 03 OS:lSa James L KODer. '""~ \JV II""'...... I' ~ OK~~Ery ~o~~~~E (305) 294-4641 (~., --- BOARD OF COUNTY COMMISSIONERS Mayor Dixie M. Spehar, DIstrict 1 Mayor Pro Tern Murray E. Nelson, Dlstnct 5 George Neugent, District 2 Charles "Sonny" McCoy, District 3 . David P. Rice, District 4 To: From: Date: RE: James L. Roberts Todd Erickson February 20, 2003 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 jf 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. ~~\)1~.f. -p ~tf/ Todd Erickson ~ Exhibit AD E-mail Correspondence Between Former Director and SBC - -g- - --- From: Erickson-Todd Sent: Thursday, August 07,20032:05 PM To: 'MAETZ, MIKE (AIT)' Cc: Guerra-Maria; Roth-Cee Subject: RE: Todd From Monroe Mike, , .~.'. :', t'!" ":' I 1 ,:J.. ('f., ^ ,.oJ, ~ ,~"'__I'ifTlRi""WI.'''''MhllWnld 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 (Arr) [mallto:mm1416@sbc.com] Sent: Thursday, August 07,200310:12 AM To: 'Erlckson- Todd@monroecounty-f1.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 SSC 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: Erlckson- Todd@monroecounty-f1.gov [mailto: Erlckson- Todd@monroecounty-f1.gov] Sent: Friday, August 01,2003 11:11 AM To: MAETZ, MIKE (Arr) 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 1013/2003 Thx AT-G8LX10 AT -G8SX AT-VVL2411 AT -WCL007 -001 AT-\lVR2411 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 (Arr) [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. -----Orlginal Message----- From: Erickson- Todd@monroecounty-fl.gov [mallto: Erlckson- Todd@monroecounty- fl.gov] Sent: Tuesday, July 29,20033:57 PM To: MAETZ, MIKE (Arr) 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 . 1.1.5"" J. V.I. J From: Erickson-Todd Sent: Tuesday, August 19, 2003 8:11 AM To: 'MAETZ, MIKE (AIT)' 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 (Arr) [mallto: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: Erlckson- Todd@monroecounty-f1.gov [mailto: Erickson- Todd@monroecounty-f1.gov] Sent: Thursday, August 14, 2003 8:24 AM To: MAETZ, MIKE (Arr) SUbject: RE: Quote Mike, 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 1013/2003 1013/2003 -----Orlginal Message----- From: MAETZ, MIKE (Arr) [mailto:mm1416@sbc.com] Sent: Thursday, August 07, 2003 2:24 PM To: 'Erlckson- 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- f1.gov] Sent: Friday, August 01,200311:11 AM To: MAETZ, MIKE (Arr) SUbject: RE: Todd From Monroe Mike, Thx AT-G8LX10 AT -G8SX AT-WL2411 AT-VVCLOO7-001 AT -\lVR2411 Todd Erickson Director of Technical Service Monroe County, Florida (305) 295-5110 - Office (305) 295-5 I 30 - Direct (305) 295-5105 - Fax 1200 Truman Ave - Suite 211 Key West FL 33040 -----Original Message----- From: MAETZ, MIKE (ArT) [mailto:mm1416@sbc.com] Sent: Tuesday, July 29, 2003 4:00 PM To: 'Erickson-Todd@monroecounty-f1.gov' Subject: RE: Todd From Monroe This is correct - thanks. -----Original Message----- From: Erlckson-Todd@monroecounty-fl.gov [mailto: Erickson- - ~.g - - - - - Todd@monroecounty-f1.gov] Sent: Tuesday, July 29, 2003 3:57 PM To: MAETZ, MIKE (Arr) 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 Exhibit AE E-mail From Howard Computers Page 1 of2 From: To: Sent: Subject: "Tasha Hodges" <thodges@howardcomputers.com> '''Patty Sutton'" <psutton@monroe-clerk.com> Monday, September 22,20031 :38 PM 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 Computer. Inside Sale. Repre.entative Toll Fr_: ......12-3151 Direct: 801-399-5058 Fax: 801-399-5077 emall: thodgesOhowardcomputer..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 4/30103 is $1,718. We have disaJssed that the quote you provtded 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 9/23/2003 Exhibit AF Memorandum From Division Director of Management Services 'OK~~rv ~o~~~E (305) 294-"'1 , ' BOARD OF COUNTY COMMISSIONERS Mayor Dixie M. Spelw'. District I Mayor Pro Tem Murray E. Nelson. District 5 Charles "Sonny" McCoy, District 3 George Neugent, District 2 David Rice, District 4 Management Services Division 1100 Simonton Key West, FL 33040 (305) 292-4537 1:; I ~, , · ,.....-:, .:,' ro \ L. I. . V :\~..\1J t 7""'11'1'- (~'lr. '~",A11tl. . . l~' .-~ '- 'j~~'.~. <1:.- MEMORANDUM Date: October 1, 2003 From: Sheila A. Bar . Division Direct b~ To: Danny Kolhage Clerk of the Court 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 emaillabeled 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 slie:ht differences between the equipment ordered. Hopefully this can help you. If I can be for additional assistance to you, please advise. Exhibit AG Memorandum From Social Services f4EMORANPUM FROM: Danny L. Kolhage Clerk of Court ~1 /2 Louis laTorre, Director r- Social Services No- TO: DATE: August 2S, 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 S/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-15-03 12.18 rlo(UI'l....U...KUC ...."'.........& ....~~- --- --- Mark Anderson notes August 27, 2003 On Monday, August 11,2003, Todd approached Mar1< and asked how often the dumpster was emptied. Mar1< 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: Sent: To: Subject: Erickson-Todd Wednesday, July 09, 20034:23 PM 'Ron Tarro' 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. Gaudreauj 'Erickson-Todd@monroecounty-fl.gov'j Oina Tarroj 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 SOD disabled. (the later is still down). We need to have a high availability attitude when rolling our systems over. -----Original Message----- F=,:rr: S~E~e~ c. G~'~drecic Sent: Wednesday, July 09, 2CC~ 9:22 ~1 To: 'Erickson-Todd@monroecounty-fl.gov'j Ron Tarroj Oina Tarroj 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 SOD. This is the my concern with more control over who accesses and does what on the machine. The JOT 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 know 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:Erickson-Todd@monroecounty-fl.gov] Sent: Thursday, July 03, 2003 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 JAZZ 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 S~bject: RE: remc~e access opticns ~cr JAZZ c~stc~8rs Everyone, Last night I remoted 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 Citrix server had already been hacked into, and several registry entries had been modified and an 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 was 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 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 [mallto:LoriL@johnsoninsure.com] Sent: Wednesday, April 23, 2003 11:46 AM To: Erickson-Todd@monroecounty-fl.com SUbject: Jon this weekend and have a chance to check...Jon still cannot pull up any ets one query box on top of another, but none of the documents ever 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 chan s, but it does not. Instead, the next step is what comes up.....where you choose to queue for closeday 0 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 O,~~rY ~o~,,~!!,.~E (305) 294-4641 County Administrator 1100 Simonton Key West, FL 33040 (305) 292-4537 Date: February 25, 2004 To: Danny Kolhage Clerk of the Court BOARD OF COUNTY COMMISSIONERS Mayor Murray E. Nelson, District 5 Mayor Pro Tern David Rice, District 4 Dixie Spehar, District I George Neugent, District 2 Charles "Sonny" McCoy, District 3 MEMORANDUM ~fLL James L. Roberts ~~ County Administrator From: 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 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 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 of2002, 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 Findine:: 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 l111icenses invoiced from IWVD. The owner ofIWVD 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 ofIWVD, 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 ofIWVD, 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 ofCitrix 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. Recommendation( s ): 1. County Management should pursue restitution. County Administrator's ResDonse: 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 Findin2: 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 of5 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 InsightlComark 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 InsightlComark 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, InsightlComark 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 of20 licenses, for a total of60. 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. Recommendationl 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. Countv Administrator's ResDonse: 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 Findin2: 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 III 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 staffinformed 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 $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 Findin2: 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 11119/02 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 11119102 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. 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. Countv Administrator's ResDonse: 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 $15,076 for unnecessary Internet Services in Marathon executed by the former Director of Technical Service Findin2: 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 ResDonse: 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 Findine:: 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 ofS49,040 in Key West, Internet Service in the amount ofS15,076 in Marathon and a Virtual Personal Network (VPN) contract in the amount ofS28,646. 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 Agencyl 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 ResDonse: I. 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. Findin2: The County has a contract in the amount ofS163,200 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/maintenance 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. Recommendationls ): 1. County Management should confirm the necessity for private contractors before approving their use. County Administrator's ResDonse: 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. Findin2: 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): I. 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 ResDonse: 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 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. D. Audio Visual Innovations Contract 1. Adjustments to Audio Visual Innovations contract Findine:: 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 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 ResDonse: 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 orden for Audio Visual Innovations contract Findin~: 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 offive 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 Offwas 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 ResDonse: 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 itemslservices 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. E. Inventory Account for Technical Services Department Findine:: 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 staffwould 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 ofa 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. Recommendationl 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 ResDonse: 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 FindiDl!: 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 ofa 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 "lIP 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(l5)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 ResDonse: 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 Findine:: 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 ComarkJInsight 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 ResDonse: 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 SHC for credit Findine:: 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 staffinformed 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. Recommendationl 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 ResDonse: 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. Findinl!: 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. Recommendationl 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 ResDonse: 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. I. Howard Computers 1. Desktop computers purchased through Howard Computers Findin2: 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. Recommendationl s ): 1. Information Technology expenditures of this magnitude should be carefully planned, documented and approved. County Administrator's ResDonse: 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 Findine:: 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. Recommendationl 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 ResDonse: 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 Findine: 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. Ifproper 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 ResDonse: 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 Findine: 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 AI - 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 ResDonse: 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. CLERK OF THE CIRCUIT COURT MONROE COUNTY BRANCH OFFICE MARATHON SUB COURTHOUSE 3117 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 TEL. (305) 289-6027 FAX (305) 289-1745 MONROE COUNTY COURTHOUSE 500 WHITEHEAD STREET, SUITE 101 KEY WEST, FLORIDA 33040 TEL. (305) 292-3550 FAX (305) 295-3663 January 9,2004 BRANCH OFFICE PLANTATION KEY GOVERNMENT CENTER 88820 OVERSEAS HIGHWAY PLANTATION KEY, FLORIDA 33070 TEL. (305) 852-7145 FAX (305) 852-7146 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 andlor 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 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 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 Sincerely, S~.~ Sandra Carlile Finance Director