Resolution No. 86191
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RESOLUTION NO. 8619
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AGREEMENT FOR INDEMNIFICATION BY AND BETWEEN THE
CITY OF VERNON AND THE WATER REPLENISHMENT DISTRICT
OF SOUTHERN CALIFORNIA
WHEREAS, the Water Replenishment District of Southern
California ("WRD") is a water replenishment district organized and
existing pursuant to the Water Replenishment District Act, Water Code
§§ 60000 et seq., as amended, and manages the groundwater in the
Central and West Coast Groundwater Basins; and
WHEREAS, WRD is responsible for maintaining adequate
groundwater supplies, preventing seawater intrusion into the
groundwater aquifers, and protecting groundwater quality against
contamination; and
WHEREAS, the City of Vernon is situated in the Central
Groundwater Basin and purveys potable water to most industries located
within its boundaries; and
WHEREAS, WRD is empowered to undertake capital improvement
projects and legal actions, among other activities, in order to
prevent contaminants from entering the groundwater supplies; and
WHEREAS, the California Department of Health Services has
issued Draft Regulations regarding the replenishment of aquifers using
recycled wastewater that may impact potable wells located near recharge
areas; and
WHEREAS, to mitigate potential problems, WRD established
various investigation and treatment projects as part of its water
quality and replenishment responsibilities; and
1 WHEREAS, WRD selected City of Vernon Well No. 18 located at
2 2070 51st Street ("Well No. 18") for testing; and
3 WHEREAS, Well No. 18 has water quality problems relating to
4 volatile organic compounds and perchlorate and has been off-line since
5 October of 2003; and
6 WHEREAS, WRD and the City mutually recognize that water
7 quality entering Well No. 18 from different zones across the perforated
8 intervals need to be identified and isolated to improve the overall
9 water quality produced from Well No. 18; and
10 WHEREAS, WRD entered into a Professional Well Testing
11 Services Agreement with General Pump Company to perform the testing and
12 evaluation of Well No. 18 in the following phases: Phase I -Project
13 Assessment and Data Collection; Phase II -Remove Equipment; Phase III-
14 Dynamic Test of Well; Phase IV -Re -install Pump Equipment; and Phase V
15 Final Report; and
16 WHEREAS, all costs pertaining to the performance of the test
17 and evaluation on Well No. 18 will be borne by WRD and the work product
18 produced shall be for the benefit of City in the pursuit of its
19 responsibilities as a water purveyor; and
20 WHEREAS, WRD and the City desire to enter into an Agreement
21 for Indemnification to clarify the role of each party with respect to
22 any damages that may result from the testing and evaluation of Well
23 No. 18.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
25 CITY OF VERNON AS FOLLOWS:
26 SECTION 1: The City Council of the City of Vernon hereby
27 finds and determines that the recitals contained hereinabove are true
28 and correct.
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SECTION 2: The City Council of the City of Vernon hereby
approves the Agreement for Indemnification with WRD, a copy of which is
attached hereto as Exhibit A and incorporated by reference.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor to execute said Agreement for, and on behalf of,
the City of Vernon and the City Clerk is hereby authorized to attest
thereto.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to transmit an executed
Agreement to the following:
Water Replenishment District of Southern California
Attn. Helene Mendoza, Technical Support Specialist
12621 E. 166th Street
Cerritos, CA 90703
SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 5th day of January, 2005.
�SC�.MA��BU, Mayor
ATEON
TEST•
BRUCE V.''MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8619, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, January 5,
2005, and thereafter was duly signed by the Mayor of the City of
Vernon.
�t
BRUCE V. MALKENHORST, City Clerk
(SEAL)
EXHIBIT
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AGREEMENT FOR INDEMNIFICATION
THIS AGREEMENT is made, entered into and executed in
duplicate originals, either copy of which may be considered and used
as the original hereof for all purposes,,as of this 5th day of
January, 2005, in the City of Vernon, County of Los Angeles,
California
BY AND BETWEEN THE CITY OF VERNON (hereinafter
referred to as "City")
4305 Santa Fe Avenue
Vernon, California 90058-0805
AND WATER REPLENISHMENT DISTRICT OF
SOUTHERN CALIFORNIA (hereinafter
referred to as "WRD")
12621 E. 166th Street
Cerritos, CA 90703
RECITALS
WHEREAS, WRD is a water replenishment district organized and
existing pursuant to the Water Replenishment District Act, Water Code
§§ 60000 et seq., as amended, and manages the groundwater in the
Central and West Coast Groundwater Basins;' and
WHEREAS, WRD is responsible for maintaining adequate
groundwater supplies, preventing seawater intrusion into the
groundwater aquifers, and protecting groundwater quality against
contamination; and
WHEREAS, City is situated in the Central Groundwater Basin
and purveys potable water to most industries located within its
boundaries; and
WHEREAS, WRD is empowered to undertake capital improvement
projects and legal actions, among other activities, in order to prevent
contaminants from entering the groundwater supplies; and
1 WHEREAS, the California Department of Health Services has
2 issued Draft Regulations regarding the replenishment of aquifers using
3 recycled wastewater that may impact potable wells located near recharge
4 areas; and
5 WHEREAS, to mitigate potential problems, WRD established
6 various investigation and treatment projects as part of its water
7 quality and replenishment responsibilities; and
8 WHEREAS, WRD selected two production wells, City of Vernon
9 Well No. 18 located at 2070 51st Street ("Well No. 18") and South
10 Montebello Well No. 5, for testing; and
11 WHEREAS, Well No. 18 has water quality problems relating to
12 volatile organic compounds and perchlorate and has been off-line since
13 October of 2003; and
14 WHEREAS, WRD and the City mutually.recognize that water
15 quality entering Well No. 18 from different zones across the perforated
16 intervals need to be identified and isolated to improve the overall
17 water quality produced from Well No. 18; and
18 WHEREAS, WRD requested proposals from qualified
19 contractor/consulting firms to (a) perform testing consisting of
20 spinner logging, zone sampling and appropriate mass balance analysis to
21 identify the flow rates and water quality entering the well from
22 different zones across the perforated intervals; and (b) prepare a
23 report of test results to identify the potential of sealing off poor
24 quality zone(s) to improve the overall water quality pumped from Well
25 No. 18, and the affect of any changes upon the overall yield of the
26 well; and
27 WHEREAS, WRD has reviewed the proposals submitted by the
28 qualified firms and entered into a Professional Well Testing Services
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Agreement with General Pump Company to perform the testing and
evaluation of two groundwater productions wells, one of which is Well
No. 18; and
WHEREAS, General Pump Company will perform the testing and
evaluation in the following phases: Phase I -Project Assessment and
Data Collection; Phase II -Remove Equipment; Phase III -Dynamic Test of
Well; Phase IV -Re -install Pump Equipment; and Phase V-Final Report; and
WHEREAS, General Pump Company's estimated cost for performing
the test and evaluation on Well No. 18 is the sum of Forty Thousand
Seven Hundred Four Dollars and No Cents ($40,704.00), plus an amount
not to exceed Nine Thousand Six Hundred Dollars and No Cents
($9,600.00) for the groundwater geological services of Richard C. Slade
& Associates LLC for Well No. 18 and South Montebello Well No. 5; and
WHEREAS, all costs pertaining to the performance of the test
and evaluation on Well No. 18 by General Pump Company and Richard C.
Slade & Associates LLC shall be borne by WRD and the work product
produced by General Pump Company and Richard C. Slade & Associates LLC
jshall be for the benefit of City in the pursuit of its responsibilities
as a water purveyor; and
WHEREAS, by the terms hereof, WRD and City intend to clarify
the role of each party and the indemnification of the City for any
damages that may result from WRD's performance of this Agreement and
the testing and evaluation performed by General Pump Company and
Richard C. Slade & Associates LLC.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET
FORTH HEREIN:
1. INSURANCE.
WRD shall require all contractors and subcontractors
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involved in the testing and evaluation of Well No. 18 to obtain, keep
in force, and maintain the following policies of insurance at all
times while this Agreement is in effect:
1.1 Commercial General Liability Insurance
(contractual, products, and completed operations coverages included)
with a combined single limit of no less than $1,000,000 and a general
aggregate limit of no less than $2,000,000.
1.2 Business or Comprehensive Automobile Liability
Insurance for owned, scheduled, non -owned, or hired automobiles, with
a combined single limit of no less than $1 million per accident.
1.3 Professional Liability Insurance with limits of
$1,000,000 per claim and $2,000,000 in the aggregate.
1.4 Employers' Liability Insurance with limits of
$1,000,000 per claim and $1,000,000 in the aggregate.
1.5 Workers' Compensation Insurance as required under
the Workers' Compensation Insurance and Safety Act of the State of
lCalifornia.
WRD and City, and their respective officers, employees, and
representatives shall be named as additional insureds on each such
Policy of insurance. Each such policy shall provide that the policy
is not subject to cancellation except upon thirty (30) days prior
written notice to both WRD and City. WRD shall require that each
contractor involved in the testing and evaluation provide to both WRD
and City certificates evidencing such insurance prior to commencing
any work on Well No. 18.
2. PAYMENT OF COSTS.
WRD shall be the contracting party for the evaluation and
testing of Well No. 18 by General Pump Company and Richard C. Slade &
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Associates LLC. WRD shall pay for all costs associated with the
evaluation and testing of Well No. 18.
3. RIGHTS OFWRDAND CITY.
3.1 City shall provide WRD and its contractors and
subcontractors reasonable access to the site of Well No. 18 in order
to complete the work that commences upon the issuance of a Notice to
Proceed from WRD and terminates no later than June 30, 2005. WRD and
its contractors and subcontractors will take all reasonable
,precautions tominimizeany damage to the property, including
underground utilities. WRD shall agree to defend and indemnify City
from any claims arising from entering or working on the site which is
the subject of the work.
3.2 WRD and General Pump Company have executed a
Professional Well Testing Services Agreement concurrently with this
Agreement for Indemnification.
3.3If, as a result of the above -described rights of
WRD and those specified in the Professional Well Testing Services
Agreement concerning selecting, hiring, supervising, directing and
controlling the work of the contractors and subcontractors, the City
sh,QTd be named as a party defendant in litigation, WRD shall
undertake affirmatively to defend.the City in such action and shall
indemnify and hold harmless City against any loss or risk of loss,
including attorney's-fees and court costs, as a result of the right of
WRD to direct and control the work of the contractors and
subcontractors. This obligation by WRD to defend and indemnify the
City shall not preclude apportionment of the cost of the City's
defense between the City and WRD in the event that the City is found
liable on other grounds in such litigation.
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3.4 City shall make available to WRD all files and
records of City pertaining to Well No. 18, including copies of all
test data associated with the operation of Well No. 18. WRD shall
cause its contractor or subcontractor, as applicable, to make
available to City, on request of City, all test data associated with
Well No. 18.
4. TERMINATION.OF THE AGREEMENT.
4.1 Right of Termination. This Contract may be
terminated by the City, with or without cause, upon at least fifteen'
(15) calendar days' written notice delivered to WRD.
4.2 Termination by the City for Cause or by WRD
without Cause. If WRD breaches this Contract, the City shall notify
WRD in writing of said breach and if WRD has not cured or begun
reasonable efforts to cure within fifteen (15) calendar days of
delivery of said notice, and fails to diligently pursue corrective
action, the City shall have the right to cancel this Contract on the
15th day following delivery of notice to WRD for cause. WRD shall be
responsible for all direct and indirect costs due to the City's
procurement of the equivalent services cancelled pursuant to this
Paragraph.
4.3 Actions Subsequent to Termination. Following the
termination date, regardless of whether the Contract is terminated
with or without cause, the City shall have no further, duties,
liabilities or obligations whatsoever under this Contract.
4.4. Notices. All notices required or permitted by
this Contract shall be in writing and may be delivered in person (by
hand or by messenger or courier service) or may be sent by certified
or registered mail, return receipt requested, or by facsimile
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I transmission during normal business hours, if delivery is confirmed
2 and provided a copy is also delivered via delivery or mail, and shall
3 be deemed effective upon delivery or refusal to accept delivery. If a
4 notice is delivered on a Saturday, Sunday, or holiday, it shall be
5 deemed delivered on the next business day. Notices to the parties
6 shall be sent to the addresses set forth below, or such other address
7 as is provided by one party to the other in writing.
8 City: CITY OF VERNON
9 ATTN: BRUCE V. MALKENHORST
CITY ADMINISTRATOR
10 4305 SANTA FE AVENUE
VERNON, CA 90058-0805
li
12 WRD: WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA
ATTN: GENERAL MANAGER
13 12 621 E . 16 6TH STREET
14 - CERRITOS, CA 90703
15 5. CONFIDENTIAL INFORMATION.
16 5.1 Access to Confidential Information. City may
17 provide WRD and/or its subcontractor with, or allow WRD access to,
18 certain information deemed relevant by City, not available to the
19 public concerning City, or businesses located in City. The
20 information may include company information, taxes, sales, value of
21 assets, utility usage or other such information. All such information
22 shall be known as "Confidential Information" and shall not be used to
23 circumvent the responsibility of either party to this Agreement.
24 5.2 No Disclosure. Except as expressly permitted, WRD
25 and/or its subcontractor shall not disclose, .permit the disclosure of,
26 release, disseminate, or transfer, whether orally or by any other
27 means, any part of such Confidential Information to any other person
28 or entity, whether corporate, governmental, or individual, without the
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express prior written consent of an authorized representative of City.
WRD and/or its subcontractor shall return any and all written
Confidential Information and all copies made of such items to City
upon City's written request, but in any event not later than the date
that WRD has performed all services to be.performed pursuant to this
Agreement. However, WRD may retain one copy of the Confidential
Information for its legal records. WRD hereby agrees that such
Confidential Information and any documents provided may be used by WRD
and/or its subcontractor only as authorized by City. WRD's contracts
with subcontractors shall include provisions that bind the
subcontractors to this non -disclosure requirement. WRD shall take
reasonable measures to avoid any disclosure of any such Confidential
Information to any unauthorized person.
5.3 Court Ordered Disclosure. WRD shall immediately
notify the City of any court order or subpoena or other directive of a
court, administrative agency, quasi-judicial body or arbitration panel
requiring disclosure of Confidential Information, and shall cooperate
with legal counsel in the appeal or challenge of any such order or
subpoena. WRD may only disclose Confidential Information required to
be disclosed pursuant to a valid court order or subpoena after legal
counsel has exhausted any lawful and timely appeal or challenge, to
the extent that such appeal or challenge does not hinder WRD from its
obligations under such court order or subpoena.
5.4 Remedies. In addition to any other remedies that
it may have at law or in equity, City shall be entitled to a temporary
and permanent injunction by a court of competent jurisdiction against
any breach or threatened breach of the Confidential Information
provisions of this Agreement. WRD acknowledges that in case of such
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breach or threatened breach of said provisions, City would have no
adequate remedy at law.
6. INDEMNIFICATION.
6.1 WRD's Indemnity. To the fullest extent permitted
by law, WRD shall defend, indemnify and hold harmless City and its
elected officials, officers, agents and employees from all claims,
suits, actions, demands, damages, liabilities, expenses, judgments,
settlements and penalties, losses, fines, and all costs and expenses
incurred in _connection therewith, including reasonable attorneys' fees
and all costs of defense, arising out of or attributable to the
negligent or wrongful acts of WRD or its employees or agents in the
delivery of _services under this Agreement, except to the extent
arising from or caused by the sole negligence or willful misconduct of
the City, its officers, agents or employees. The terms of this
indemnity shall survive the termination of this Agreement. The
obligations in this Paragraph are in addition to WRD's duty to provide
insurance and shall not be limited by any limitation on the amount or
type of insurance coverage carried by WRD.
6.2 Indemnity Process. The City shall notify WRD in
writing of any suits, claims or demands covered by this indemnity.
Promptly after receipt of such .notice, WRD shall assume the defense of
such claim with counsel reasonably satisfactory to City. If WRD
fails, within a reasonable time after receipt of such notice, to
assume the defense with counsel reasonably satisfactory to City, or
if, in the reasonable judgment of City, a direct or indirect conflict
of interest exists between the parties with respect to the claim, or
if in the sole judgment of City the assumption and conduct of the
defense by WRD would materially and adversely affect City in any
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manner or prejudice its ability to conduct a successful defense, then
the City shall have the right to undertake the defense, compromise and
settlement of such claim for the account and at the expense of WRD.
Notwithstanding the above, if the City in its sole discretion so
elects, City may also participate in the defense of such actions by
employing counsel at its expense, without waiving the City's
obligations to indemnify or defend. WRD shall not settle or
compromise any claim or consent to the entry of any.judgment without
the prior written consent of the City and without an unconditional
release of all liability by each claimant or plaintiff to the City.
7. Governing Law. The validity, interpretation and
performance of this Agreement shall be controlled and construed under
the laws of the State of California.
8. Assignment. Neither City nor WRD shall assign or
transfer its interest in this Agreement without the written consent of
the other party.
9. Attorney's Fees. If either party institutes an action
or legal proceeding arising out of or related to this Contract or the
relationship of the parties or their rights or duties in connection
with the matters set forth in this Contract, whether sounding in tort,
contract, or otherwise, the prevailing party in.such action or
proceeding shall be entitled to recover from the other party all costs
and expenses, including attorneys' fees, in addition to any other
remedy awarded by the court.
10. Amendments. This Agreement may be modified or
amended only by a written document executed by both WRD and City.
11. Entire Agreement. This Agreement constitutes the
complete and final expression of the agreement of the parties and is
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intended as a complete and exclusive statement of the terms of their
agreements and supersedes all prior and contemporaneous offers,
promises, representations, negotiations, discussions, communications
and agreements which may have been made in connection with the subject
matter hereof. All exhibits are incorporated by reference. WRD
represents that in entering into this Agreement, it has not relied on
any previous representations or understandings of any kind or nature.
12. Benefit of Agreement. This Agreement shall bind and
benefit the parties hereto and their heirs, successors, and permitted
assigns. This Agreement shall not create any rights or benefits to
parties other than City or WRD. Nothing contained in this Agreement
shall create a contractual relationship with or cause of action in
favor of a third party against either the City or WRD. No third -party
shall have the right to rely on WRD's opinion rendered in connection
with WRD's services without WRD's written consent and the third-
party's agreement to be bound to the same terms and conditions as
City.
13. Forum Selection. Any action brought relating to this
Agreement shall be brought and held exclusively in a State Court in the
County of Los Angeles, California.
14. Force Majeure. Neither party shall be considered to be
in default in any of its obligations under this Agreement when a
failure of performance shall be due to an uncontrollable force. The
terms "uncontrollable force" shall mean any cause beyond the control of
the party affected, including, but not limited to, flood, earthquake,
storm, fire, lightening, epidemic, war, riot, civil disturbance or
disobedience, labor dispute, labor material shortage, sabotage,
federal, state, or municipal action, statute, ordinance, or regulation,
1 embargoes or the United States Government or any other government,
2 which by exercise of due diligence such party could not reasonably have
3 been expected to avoid and by exercise of due diligence has been unable
4 to overcome. Either party rendered unable to fulfill any of its
5 obligations under this Agreement by reason of an uncontrollable force,
6 shall give written notice within five (5) business days of such fact to
7 the other party and shall exercise due diligence to remove such
8 inability with all reasonable dispatch.
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ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
ERIC T. FRESCH, City Attorney
Approved as to Form:
WESTON, BENSHOFF, ROCHEFORT,
RUBALCAVA & MACCUISH, LLP
L__� /)�?� �-
Attorneys for -the Water
Replenishment District of
Southern California
{
IN WITNESS WHEREOF, the parties have caused this Agreement
.o be executed by and through their authorized officers on the date,
ionth and year first written above.
CITY OF VERNON
By:
LEONIS C. MALBURG, Mayor
WATER REPLENISHMENT DISTRICT
OF SOUTH RN CALIFORNIA
By:
Name: CdS rr _
Title:
By:
Name: AA
14,ce-t CS
Title: S�.0 r la
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SUPPORTING
DOCUMENTS
DATE: December 27, 2004
SUBJECT: AGREEMENT FOR PROFESSIONAL PUMA' TESUNG SERV'ICES'WrIH
THE WATER REPLENTSffiVENT DISTRICT ('WELL 19)
The City Aumney's office has prgmcd an went between the city anal tbe, water RePlexudmient
District (WRD) to perf = spinner 1099M sampling and mass balance testing to identify flow raves and
the water quality entming well 18. As you will roc A well 18 has tested positive for the containmm s
Perchlorate and 1,2 Dicbloaathaue (1,2 DCA). The PerdAorate was detected iu Febn=y of 2000 at a level of 12
ug/L 'Ibis level exceeded the Action Level of 4 ug/L As a. insult, the City was directed by the California
Depsunent of Heaidt Services (CDHS) to notif'Y its City Council in writing of the potential problems associated
with the oo The City immediately complied with the CDHS reporting requirement request. The
Acraon Level does, however, allow the City to continue to produce and sell water from this facility as long as it
has met the reporting requirenwt-
1-he 1,211CA was detected in September of 2003 at a level of 0 66ug/1. This exceeded the MwdM11m
ConwMent ,=I (MCL.) of .5 Ug/L 'The City was diteded by the CDM to take one sample per -month for
six months and thentake au average at the eonchmm ofthe sample period. Tlro results ofthe six MOB
indicated an average level of 1.004 ug/l, which exceeded the MCL. The City notified the CDHS of the results
and was directed to take fts facility off-IM umil some means of treatmart is detmnmed.
Thee ultimate goal ofthe test pumping is to de z=rte which zones am mVacted by the above -
mentioned c0nW&Mxntr,. Wo this dam, thc kqpcmdmx= can then be blocked off to prevent the
ocummmeuz
from Wig the water supply. If suooesSK this would allow me City to put this Y back -
on -line. It is &aef a memnended that City Council approve the agreement. The agreement has been
O=ged by the'WRD. please place this itann on the Jarmary 5, 2004 City Council agenda. 'Thaolk you.
SKW/sr
Fmclosure
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